ASTRON CORPORATION LIMITED annual report 2015
STRENGTH INTEGRITY
INNOVATION
38 8¢
.
Net tangable asset value per share. Increased from 29.2 cps in June 2014
01
CORPORATE MATTERSWest Africa.
Highlights, key objectives & outlook 1 About Astron 2 Donald Mineral Sands (DMS)
project summary 4
Chairman's report 10 President's report 11
Sustainable development 14
Corporate governance 16
13 87
$ . m
FY15 revenue
Entry into an EPC contract with CMEC secures the future funding
for our Donald mineral sands project subject to satisfaction of conditions precedent and a pathway for the first stage of that project.
$7.99m
Financial statements 24
Investor information 92
Corporate directory Back Cover
CAUTIONARY STATEMENT
Certain sections of this report contain forward‑looking statements that are subject to risk factors associated with, among others, the economic and business circumstances occurring from time to time in the countries and sectors in which the Astron Group operates. It is believed that the expectations reflected in these statements are reasonable but they may be affected by a wide range of variables which could cause results to differ materially from those currently projected.
COMPETENT PERSON'S STATEMENT
The information in this report that relates to Exploration Results and Mineral Resources is based on information compiled by Mr Rod Webster, a Competent Person who is a Member of the Australasian Institute of
Mining and Metallurgy and Australian Institute of Geoscientists. Mr Webster is a full time employee of AMC Consultants Pty Ltd and is independent of DMS, the owner of the Mineral Resources. Mr Webster has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent
Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Webster consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
FY15 net profit/loss
Astron received an award in its favour for $US18.6 million (plus costs and interest) from the International Centre for Settlement of Investment Disputes against the Gambia Government after 5 years international arbitration.
Astron's expenditure has been focused on developing the Donald Mineral Sands project, the Niafarang project and continued research and development.
02
DONALD MINERAL SANDS PROJECT03
NIAFARANG (SENEGAL) PROJECT04
CHINA & USAFUNDING
Finalisation of definitive terms of the EPC contract with CMEC for the funding of a significant part of the development of the Donald Project, and currently Astron is working towards satisfying
conditions precedent including arranging suitable insurance.
OPTIMISATION OF THE PROJECT
Optimized Donald Project in terms of optimizing mining method, technical process improvement, innovative technologies, utilising Chinese equipment to achieve more competitive CAPEX and OPEX continues.
APPROVALS
A Mining Licence and Cultural Heritage Management Plan have been approved for the Project. Work is continuing on export approvals and finalising the work plan for the subsequent granting of the work authority. DMS continues to work with all relevant Government Department and Agencies to meet statutory requirements and progress the approval process.
EXPLORATION
Further exploration outside the mining licence area and geotechnical and exploratory drilling programs were conducted at the project area in January
- March 2015. Pending assaying results of the in‑fill drilling at the Donald and Jackson mineral sands deposits will be used to update the Mineral Resource estimates later this year.
Further work undertaken in Senegal in relation to application for a mining
licence for the Niafarang project licence, which will be submitted once the requisite environmental approval is obtained.
Complex negotiations are ongoing with the various parties playing a role within the Casamance Province (in which the Niafarang project is located). These negotiations continue, and are in relation to seeking greater social acceptance
of the Niafarang project, which has culminated in a memorandum of terms been reached between the community and Astron, a further vital step towards a mining licence.
Astron's expenditure has been focused on developing the Donald Mineral Sands project, the Niafarang project and continued research and development.
Astron continues to seek mineral sands deposits in USA for processing and sale in China.
Astron continued its trading activities in China, but at subdued levels due to price declines and soft demand, resulting in
a loss for the period.
ASTRON CORPORATION LIMITED / ANNUAL REPORT 2015 / 1
Astron's main focus is developing its two wholly owned mineral sands
projects, the Donald Project in Australia and the Niafarang project in Senegal.
Astron has spent a considerable part of the last year optimising the definitive feasibility study for the
Donald Project. In October 2015, entry into an EPC contract with CMEC will provide funding for the EPC of the first phase of the Donald Project, subject to satisfaction of a number of conditions.
The Donald project is one of the largest known zircon and titanium resources in the world.
The Niafarang project in Senegal, West Africa, is a high-grade coastal mineral sands deposit, to be exploited using simple dredge mining and processing methodology. Astron is
currently undertaking further work on the application for a mining licence for the Niafarang Project.
Astron has continued to build on its unique 25 year track record in China as a Chinese-Australian company in developing, selling and marketing zirconium and titanium products.
Astron has significant research and
technology capabilities in titanium and zirconium metal and chemical processes. Astron carries on its Chinese mineral sands trading business to maintain close relationships with its key customers.
Astron continues to develop its technical capabilities of producing zircon and titanium metals and chemicals.
Astron is also considering other projects, including investigating opportunities in the United States of America.
1988
1992
1996
1997
Astron became involved in two zirconium materials projects in China.
Established Shenyang Astron Mining Industries Ltd importing zircon sand and exporting zircon chemicals.
Zircon flour factory at Zibo Shandong established.
Set up zirconium chemical production JVs to expand zirconium oxychloride and chemical zirconia capacity.
2009
2011
2012
2013
Donald Project Environmental Effects Statement approved.
Purchased water rights to 7.0GL p.a. sufficient for Stages 1a and 1b of the Donald Project. Re‑awarded exploration licence for Niafarang Project.
Astron re‑domiciles to Hong Kong.
Release of feasibility study for the Donald project.
2 / ASTRON CORPORATION LIMITED / ANNUAL REPORT 2015
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