Speciality Metals International Limited Annual Report 2019

Page | 20 DIRECTORS’ REPORT The Directors of Speciality Metals International Limited present their report on the consolidated entity (Group), consisting of Speciality Metals International Limited and the entities it controlled at the end of, and during, the financial year ended 30 June 2019. D IRECTORS The following persons were Directors of Speciality Metals International Limited during the whole of the financial year and up to the date of this report, unless otherwise stated: Russell H. Krause, Executive Chairman Stephen Layton, Non-executive Director Oliver Kleinhempel, Non-executive Director – Appointed 12 August 2019 Yeo Zhui Pei, Non-executive Director – Appointed 12 August 2019 Roland W. Nice, Non-executive Director – Resigned 12 August 2019 C OMPANY S ECRETARY Adrien Wing - Appointed 1 February 2019 David Clark - Resigned 31 January 2019 P RINCIPAL A CTIVITIES The principal activities of the Group have during the 2018-2019 financial year have been to: - Finalise the transaction to acquire 100% of Mt Carbine Quarries Pty Ltd, and entity and owns and operates the Mt Carbine Quarry and holds Mining Leases ML 4867 and ML 4919. The Acquisition was completed on 28 June 2019; - Enter into an unincorporated Joint Venture with Cronimet Asia Pte Ltd for the development of the Mt Carbine Tungsten Tailings Retreatment and Stockpile Projects (Joint Venture). The Agreement was entered into on 14 May 2019. Production from the Tailings Retreatment Project is expected to commence during the 4 th quarter of 2019; along with - Maintaining its tungsten exploration assets in Far North Queensland whilst undertaking exploration activities within its gold exploration licences in New South Wales, Australia and exploration concessions in Chile. The Group also continues to evaluate other exploration and mining technology opportunities both within and outside its existing exploration permits. The “Review of Operations” section covers this in further detail. R ESULTS The net result of operations for the consolidated entity after applicable income tax expense was a profit of $3,808,863 (2018 loss of $1,478,746). D IVIDENDS No dividends were paid or proposed during the period. R EVIEW OF O PERATIONS Information on the operations and financial position of the Group and its business strategies and prospects for future financial years is set out earlier in this Annual Report. The auditors have issued an unqualified opinion. C ORPORATE S TRUCTURE Speciality Metals International Limited is a limited company that is incorporated and domiciled in Australia. E MPLOYEES The Company had one full-time employee as at 30 June 2019. The Company also uses contract geologists and other specialist consultants as required.