Robert Nash, Chairman of Bauxite Resources Limited presented the YEAR IN REVIEW to the company shareholders. In the report he discussed the substantial changes the company went through the Financial Year ending 30 June 2016.
The most significant change the company underwent was the agreement with the Yankuang Group to terminate the Bauxite Alumina Joint Venture (“BAJV”). The termination was achieved through the sale of the Company’s interests in the BAJV and in the Company’s neighbouring Fortuna tenements, to Yankuang for $7.15m together with a royalty on future sales of bauxite. Under the agreement, Yankuang also agreed to sell back its’ 8.5% shareholding in the Company for $1.15m (5.83 cents/share). Following final settlement with Yankuang in January 2016, the Company undertook a complete review of all expenditures with a view to minimising ongoing operational costs. The newly appointed Chief Executive Officer, Sam Middlemas, has assiduously implemented substantial cost reductions in all areas.
The reduced operating tempo and the lowered operating costs of the Company enabled the board to consider a number of capital management initiatives, which culminated in the return of capital to shareholders of 5 cents per prior to the end of June 2016. Currently, company has cash resources at of $16.9m, and other tangible assets of $2.7m including two farming properties.
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The Company’s remaining bauxite exploration activity is now focused on its joint venture with the HD Mining & Investment Pty Ltd, which has a substantial bauxite resource base. HD Mining continues to fund 100% of the costs of the exploration on the joint venture tenements.
The Company will continue to review further investment opportunities and capital management initiatives. He insisted on focussing on maximising shareholder value and returns as the company moves forward.
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