Company Information 1
Chairman's Letter 2
Review of Strategic Intent 3
Directors' Report 8
Corporate Governance Statement 16
Financial Statements 25
Directors' Declaration 50
Independent Auditor's Report to the Members 51
Independent Auditor's Independence Declaration 53
Additional Information 54
ABN 97 008 045 083 Directors William (Bill) Mackenzie (Non-Executive Chairman) Warwick Davies (Managing Director)Zhang Chi (Andy) (Non-Executive Director)
Company Secretaries Amanda Sparks Ann Hadden Registered Office 702 Murray StreetWEST PERTH, WESTERN AUSTRALIA 6005
Principal Place of Business 702 Murray StreetWEST PERTH, WESTERN AUSTRALIA 6005
Telephone: +61 8 9213 9400
Facsimile: +61 8 9213 9444 Website:www.resmin.com.au
Share Registry Computershare Investor Services Pty Ltd Level 11, 172 St Georges Terrace PERTH, WESTERN AUSTRALIA 6000Telephone
Within Australia: 1300 850 505
Outside Australia: +61 3 9415 4000www.investorcentre.com/contact
Auditor BDO Audit (WA) Pty Ltd 38 Station StreetSUBIACO, WESTERN AUSTRALIA 6008
Telephone: +61 8 6382 4600
Facsimile: +61 8 6382 6401
Bankers Westpac Bank116 James Street
NORTHBRIDGE, WESTERN AUSTRALIA 6000
Securities Exchange Listing Resource Mining Corporation Limited sharesare listed on the Australian Securities Exchange (Home Exchange - Perth)
ASX Code: Shares RMI
Dear Shareholder
On behalf of the Board of Directors, it is with pleasure that I present Resource Mining Corporation Limited's (RMC's) Annual Report for the year ended 30 June 2016.
As a single project, single commodity focused business, RMC is operating in a challenging business environment, best illustrated by the following graph of the London Metal Exchange nickel cash buyer price over the last 3 years.
To put this in perspective, the LME cash buyer nickel price on 11 February this year of USD$7,700 was the lowest level for 14 years.
Roughly 15% to 20% of global nickel production is derived from China's Nickel Pig Iron (NPI) industry, which relies solely on imports of nickel laterite ores. The value of nickel laterite ore, whilst not as transparent as the LME metal price, is understood to have followed a similar path as nickel metal. These ores have traditionally been sourced from mines in the Philippines, Indonesia and New Caledonia. The price of nickel and nickel ores rose rapidly in early 2014 in response to the Indonesian government's ban on the export of ore.
During the latter part of the current financial year, the Philippines National Government announced that its mining industry would be subject to audits with particular reference to the environmental performance of mining companies. To date, it is understood that the audit process has concentrated on small mines some of which have been forced to close on the basis of breaches to environmental or social operating conditions.
These restrictions on the availability of nickel laterite ore both from Indonesia and now the Philippines when viewed in a medium to longer term context, are considered positive for RMC's potential future development of the Wowo Gap Project and the boards desire to preserve and retain control of your company's Wowo Gap nickel laterite deposit.
A Feasibility Study (FS) for a Direct Shipped Ore (DSO) Project was completed and presented to the MRA prior to the end of February 2016. The completion of the FS was a requirement of the tenement renewal for the period February 2014 to February 2016. Key findings of the FS were that a DSO project from Wowo Gap is feasible but dependent upon a sustainable nickel price and continued ore demand from the Chinese NPI industry.
The renewal process for EL 1165 was initiated during the year with the tenement falling due for renewal at the end of February 2016. The Warden's Court Hearing, an integral part of the renewal process was undertaken during June 2016 with positive feedback being received from both villages of Embessa and Obea where the hearings were conducted.
A dramatically reduced site presence is being maintained at Wowo Gap with all supervisors, specialist and general labour sourced from within a pool of PNG national that live close to the main tenement EL 1165. The company's commitment to maximizing local food purchase remains in place with local fresh produce supplemented by produce from exploration camp gardens.
Under these difficult circumstances, your directors secured funding for this reduced level of company activity by way of unsecured loans from the company's largest shareholder, Sinom Investments Limited.
In closing, on behalf of the Board, I thank the RMC team for their commitment during the year and my fellow directors for their support. Most importantly, I thank you, the shareholders, for your continued support.
Yours sincerely
William Mackenzie Chairman
Resource Mining Corporation Limited published this content on 21 September 2016 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 17 October 2016 12:18:02 UTC.
Original documenthttp://www.resmin.com.au/ASX%20Announcements/2016/20160921%20Annual%20Report%20to%20shareholders.pdf
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