30 January 2017
Quarterly Report For the period ending 31 December 2016Corporate
During the quarter the Company announced significant changes to the Board with the appointment of Mr Neil Warburton and Mr David McAdam as independent non-executive directors and Mr Michael Wolley and Mr Evan Davies as non-executive directors. Mr Kevin Malaxos and Mr Ewan Vickery retired as non- executive directors of the Company. Subsequent to his appointment to the Board, Mr Warburton was appointed as the Company's chairman with effect from 20 December 2016. Mr Robert Kennedy remains on the Board.
Strategic Review
As announced at the 2016 Annual General Meeting of the Company on 30 November 2016, Mr David McAdam, who has extensive project design and construction experience, was appointed to lead a detailed independent, strategic review of the Pilbara Iron Ore Project (PIOP) including to assess the various possible future development options for the PIOP, the likely economic viability and timing of such development options, sources and availability of funding for such development options and the development of a strategy to sell the PIOP products to Asian markets. Subsequent to the end of the quarter, on 25 January 2017, Flinders provided an update to shareholders on the status of the strategic review of the PIOP.
Funding
During the quarter Flinders completed a 1:10 non-renounceable entitlement offer (Entitlement Offer) successfully raising $4,184,989 (before issue costs). Subscribers to the Entitlement Offer included major shareholders TIO (NZ) Limited and OCJ Investment (Australia) Pty Ltd. Part of the proceeds raised by the Entitlement Offer was utilized to repay a loan (including interest) from PIO Mines Pty Ltd (a subsidiary of TIO (NZ) Limited). At the end of the quarter, Flinders held cash of $3.17m.
Projects Update
During the quarter the Federal Government Department of the Environment and Energy granted Flinders conditional approval for the development of an expanded operation at the PIOP. This approval allows the development of additional mine pits and infrastructure such as external access roads, airport, ore processing facility, power station, accommodation camp and tailings storage facility. These changes allow an increase in the production of iron ore from 15Mtpa to 25Mtpa. The approval, which has effect until 31 December 2037, is subject to certain conditions, all of which are acceptable to Flinders. The environmental approval, an important primary approval milestone for the project, demonstrates that the PIOP can be developed in an environmentally acceptable manner.
For further information contact:
Phone: 08 8132 7950
Email: info@flindersmines.com
Neil Warburton Chairman
Flinders Mines Limited ABN 46 091 118 044
www.flindersmines.com
Level 1, 135 Fullarton Road Rose Park
South Australia 5067
PO Box 4031
Norwood South South Australia 5067
telephone 61 8 8132 7950
facsimile 61 8 8132 7999 email info@flindersmines.com
Tenement Schedule
For the Quarter ending 31 December 2016
Tenement | Status | Tenement | Grant/ | Expiry | Area | Registered Holder | Interest | Related |
No. | Name | Application | Date | (Sq Km) | /Applicant | Agreement | ||
Date |
WESTERN AUSTRALIA
Canegrass Project
E58/232 Granted Boulder Well 29/07/2002 28/07/2017 16.1 Flinders Canegrass100%
Pty Ltd
E58/236 Granted Challa 22/03/2002 21/03/2017 16.1 FlindersCanegrass
Pty Ltd 100%
E58/282 Granted Honey Pot 3/05/2007 2/05/2017 27.2 FlindersCanegrass
Pty Ltd 100%
E47/1560 | Granted | Anvil | 6/09/2007 | 5/09/2017 | 44.5 | Flinders Mines Ltd | 100% |
L47/728 | Granted | PIOP Airstrip | 29/05/2015 | 28/05/2036 | 3.0 | Flinders Mines Ltd | 100% |
L47/730 | Granted | PIOP Village | 29/05/2015 | 28/05/2036 | 0.1 | Flinders Mines Ltd | 100% |
L47/731 | Application | Northern Road | 1/09/2014 | 4.9 | Flinders Mines Ltd | 100% | |
L47/734 | Granted | Southern Road | 29/05/2015 | 28/05/2036 | 4.2 | Flinders Mines Ltd | 100% |
M47/1451 | Granted | Blacksmith ML | 26/03/2012 | 25/03/2033 | 111.6 | Flinders Mines Ltd | 100% |
Pilbara Iron Ore Project
Prenti Agreement
SOUTH AUSTRALIA
Curnamona Project
Prenti Agreement
EL 5739 | Granted | Wompine | 12/02/2016 | 11/02/2017 | 96.00 | Flinders Mines Ltd | 100% |
Gawler Ranges Project
EL 5761 | Granted Tin Hut | 21/03/2016 | 20/03/2018 | 716.0 | Flinders Mines Ltd | 100% |
EL 5762 | Granted Siam | 21/03/2016 | 20/03/2018 | 379.0 | Flinders Mines Ltd | 100% |
Jamestown Project
EL 5557 | Granted | Washpool | 10/11/2009 | 9/11/2019 | 135.0 | Diamonds, Phoenix Copper Ltd barium, talc and phosphate | Phoenix Copper Agreement |
+Rule 5.5
Mining exploration entity and oil and gas exploration entity quarterly reportIntroduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10, 01/05/13, 01/09/16
Name of entity
Flinders Mines Limited
ABN Quarter ended ("current quarter")
46 091 118 044
31 December 2016
Consolidated statement of cash flows | Current quarter $A'000 | Year to date (6 months) $A'000 |
1. Cash flows from operating activities | (208) | (324) |
1.1 Receipts from customers | ||
1.2 Payments for | ||
(a) exploration & evaluation | ||
(b) development | ||
(c) production | ||
(d) staff costs | ||
(e) administration and corporate costs | (515) | (1,230) |
1.3 Dividends received (see note 3) | ||
1.4 Interest received | 11 | 20 |
1.5 Interest and other costs of finance paid | ||
1.6 Income taxes paid | ||
1.7 Research and development refunds | ||
1.8 Other (provide details if material) | ||
1.9 Net cash from / (used in) operating | (712) | (1,534) |
activities |
Cash flows from investing activities
Payments to acquire:
property, plant and equipment
tenements (see item 10)
investments
other non-current assets
Consolidated statement of cash flows
Current quarter
$A'000
Year to date (6 months)
$A'000
2.2 Proceeds from the disposal of:
1
(a) property, plant and equipment
(b) tenements (see item 10)
(c) investments
(d) other non-current assets
2.3 Cash flows from loans to other entities
2.4 Dividends received (see note 3)
2.5 Other (provide details if material)
2.6 Net cash from / (used in) investing
1
activities
Cash flows from financing activities
Proceeds from issues of shares
Proceeds from issue of convertible notes
Proceeds from exercise of share options
Transaction costs related to issues of shares, convertible notes or options
Proceeds from borrowings
Repayment of borrowings
Transaction costs related to loans and borrowings
Dividends paid
Other (provide details if material)
3.10 Net cash from / (used in) financing activities
Net increase / (decrease) in cash and cash equivalents for the period
Cash and cash equivalents at beginning of period
Net cash from / (used in) operating activities (item 1.9 above)
Net cash from / (used in) investing activities (item 2.6 above)
Net cash from / (used in) financing activities (item 3.10 above)
Effect of movement in exchange rates on cash held
4.6 Cash and cash equivalents at end of period
4,148
(2,000)
4,148
2,148
4,148
1,730 (712) 2,148 | 551 (1,534) 1 4,148 | |
3,166 | 3,166 |
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