Florin Mining Investment : 2021 Annual Report

CONTENTS

	Page No.
Highlights	1
Investment Manager's Report	2
Corporate Governance Statement	7
Directors' Report	8
Auditor's Independence Declaration	13
Statement of Profit or Loss and Other Comprehensive Income	14
Statement of Financial Position	15
Statement of Changes in Equity	16
Statement of Cash Flows	17
Notes to the Financial Statements	18
Director's Declaration	34
Independent Audit Report	35
Stock Exchange Information	40
Corporate Directory	41

FLORIN MINING INVESTMENT COMPANY LIMITED

HIGHLIGHTS

Key Financial Statistics
	2021	2020	2019	2018	2017
Profit/ (loss) after tax	355,828	156,903	17,546	100,519	42,157
Earnings per Share (cents per share)	2.09	0.92	0.10	0.59	0.25
Total Assets	3,733,304	3,025,768	2,982,627	2,700,840	2,174,954
Total Liabilities	410,016	321,937	348,999	219,324	124,251
Shareholders Funds	3,323,288	2,703,831	2,633,628	2,481,516	2,050,703
Net Asset backing per share	$0.19	$0.15	$0.15	$0.15	$0.12
Total Shareholders Return*	26%	0%	0%	25%	0%
Shares on issue	16,961,769	16,961,769	16,961,769	16,961,769	16,961,769
Number of Shareholders	219	225	230	230	237

*Total shareholders return consists of the dividends paid together with the change in net asset backing per share

Benefits of Investing in Florin Shares

Florin Mining Investment Company Limited ("the Company") was incorporated in 2004, and listed on the National Stock Exchange of Australia Limited in 2005. Some of the benefits of investing in Florin Mining Investment Company Limited shares include:

• Diversification of risk

In order to diversify the risk in its investment portfolio, Florin intends to manage its investment portfolio with a view to building the number of issuers in the Portfolio to a minimum of 20 and a maximum of 100.

• Professional Management

The investment portfolio of Florin is managed by Hamilton Asset Management Limited, which is licensed by the Australian Securities & Investments Commission.

• Fixed Capital Base Not Affected by Unexpected Cash Inflows or Outflows

Florin is able to invest for the medium to long term, as it has a fixed capital base and does not need to manage constant inflows and outflows of additional capital.

• Regular Reporting to the National Stock Exchange of Australia Limited

Florin reports its performance to the NSX and shareholders on a biannual basis and it announces its net asset backing to the NSX monthly. In addition, as a listed company, Florin complies with the continuous disclosure requirements of the NSX. Copies of all announcements to the NSX are also posted on the Florin internet site www.florin.com.au.

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FLORIN MINING INVESTMENT COMPANY LIMITED

INVESTMENT MANAGER'S REPORT

Investment Objectives

The investment objectives of Florin Mining Investment Company Limited, are to:

• Preserve the capital of the Company;
• Achieve a high real rate of return, comprising both income and capital growth; and
• Generally, to limit the investments of the Company to natural resource companies being those companies:
  o who derive a significant proportion of their revenues from the mining of base and precious metals, industrial minerals, and bulk commodities, the production of oil and gas or geothermal or other renewable energy sources; or
  o have a significant proportion of their assets invested, or they propose to invest a significant proportion of their assets, in activities involved in the exploration for base and precious metals, industrial minerals, and bulk commodities, the production of oil and gas or geothermal or other energy from renewable resources.

Investment Philosophy

The Manager seeks to maximise the capital growth of the Company's portfolio by investing in natural resource companies. Investments are primarily in mining or exploration companies - that are either producing or exploring for base and precious metals, industrial minerals, bulk commodities, oil and gas or in those companies producing or developing the production of energy from renewable resources.

Whilst in making its investment decisions the Manager will generally take a medium to long term view, it may however, from time to time acquire investments with a view to profit through short term trading opportunities.

The Manager:

• focuses on the investment merits of individual stocks rather than market and economic trends; and
• seeks to invest in shares which it assesses to be undervalued relative to their longer term growth prospects.

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FLORIN MINING INVESTMENT COMPANY LIMITED

INVESTMENT MANAGER'S REPORT

The following table shows the progress of Florin Mining Investment Company Limited:

	Dividends Cents	Net Profit/(loss)	Issued Capital	Issued Ordinary	Net Assets
Year	Per Share	$	$	Shares	$
2005	-	(54,070)	977,073	5,127,502	934,776
2006	-	297,636	977,073	5,127,502	1,352,710
2007	3.0	844,323	2,416,174	13,216,306	3,664,886
2008	-	(231,528)	3,193,806	16,767,182	4,000,269
2009	-	(618,525)	3,190,675	16,750,883	3,017,201
2010	1.0	607,225	3,251,699	17,109,907	3,566,239
2011	1.0	805,862	3,183,837	16,760,455	4,117,588
2012	1.0	(885,363)	3,229,597	16,985,769	3,026,348
2013	-	(761,061)	3,225,920	16,961,769	2,198,701
2014	-	68,265	3,225,920	16,961,769	2,312,654
2015	-	(542,244)	3,225,920	16,961,769	1,747,944
2016	-	113,875	3,225,920	16,961,769	2,018,931
2017	-	42,157	3,225,920	16,961,769	2,050,703
2018	-	100,519	3,225,920	16,961,769	2,481,516
2019	-	17,546	3,225,920	16,961,769	2,633,628
2020	-	156,903	3,225,920	16,961,769	2,703,831
2021	-	355,828	3,225,920	16,961,769	3,323,288

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