Cannindah Resources: Annual Report to Shareholders
LIMITED CANNINDAH RESOURCES
REPORT OF THE DIRECTORS
The Directors present their report, together with the financial statements, on the Consolidated Entity (hereinafter referred to as “Consolidated Entity” or Group) made up of Cannindah Resources Limited (hereinafter referred to as the “Company”, “Parent Entity” or “Cannindah Resources ”) and the entities it controlled for the fiscal year ended June 30, 2021.
The following persons have been directors of Cannindah Resources Limited throughout the year and up to the date of this report, unless otherwise indicated:
Thomas J Pickett (Executive Chairman)
Geoffrey J Missen (Independent non-executive director)
Simon Beams (non-executive director)
During the year, the main activities of the consolidated entity consisted of mining exploration, evaluation and the progressive development of its various mining projects.
No dividend has been paid or declared during the current or previous financial year.
Operational and financial review
The profit of the consolidated entity after provision for income taxes amounts to $ 4,113,622 (2020: loss $ 1,373,642). The excess results from the calculation of the benefit received by the Group from the agreement with the lender Aquis Finance Pty Ltd to settle the loan agreement before maturity by issuing 190 million shares of the Company. The loan repayment agreement was approved by the shareholders at the Extraordinary General Meeting of April 16, 2021. Further details are provided in note 13 of the financial statements.
The objective of the Company, like most other small cap exploration companies, is to preserve shareholder wealth and increase the value of the flagship asset with prudent exploration methods. During fiscal year 2021, the main objective of the company was to reorganize its capital structure, to attract investors to support the ongoing financing of the company and to expand its exploration activities on its Cannindah projects. and Piccadilly to get them ready for drilling as soon as possible. as possible
The business activities of the Company include examining opportunities for expansion through acquisitions and mergers and through potential diversification opportunities in order to take advantage of positive market sentiment. At the date of this report, no investment has been made.
During the period, the Group extended its exploration activities by:
- Access historical data of the Piccadilly project thanks to the acquisition of PGMH
- Conduct further document reviews and fieldwork on the Piccadilly Project to plan for further exploration, including trenching and sampling, culminating in a new drill program towards the end of the fiscal year to consolidate the knowledge acquired during exams.
- Successful request for renewal of existing EPM 18322 and 16198 and request for new land adjacent to current buildings.
- Follow-up of a detailed analysis of the Mt Cannindah project carried out at the start of the second half of the fiscal year with the planning of a 1,450 m diamond drilling program which began in August 2021. The first drilling results have been communicated at ASX on September 28, 2021..
As of June 30, 2022, the Company had cash of $ 1,291,780 (2020: $ 39,227). During the year, the Group acquired and restructured PMH and also negotiated the early repayment of the debt of $ 5.8 million with Aquis Finance Pty Ltd. These actions left the company debt free with attractive assets to attract new investors. In this regard, the Company issued an additional 46.4 million shares in placement to raise $ 2.375 million in cash before transaction costs from December 2020 to March 2021.