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Directors’ report

The directors present their report and the audited financial

statements for the Company consisting of Axiom Mining

Limited (the ‘Company’ or ‘Axiom’) for the year ended

30 September 2015.

Principal activity

The principal activity of the Company is investment

holding and there was no significant changes in the nature

of the Company’s principal activity during the year.

Share issued

Details of movements in the Company’s share capital

during the year ended 30 September 2015, together

with the reason therefor, are set out in Note 19(a) to the

financial statements.


The directors during the year were:

Stephen Ray Williams (Chairman and Non-Executive


Ryan Richard Mount (Executive Director and Chief

Executive Officer)

Jeremy Robin Gray (Non-Executive Director –

appointed 12 July 2015)

In accordance with articles 114 and 115 of the Company’s

articles of association, Mr Stephen Ray Williams and

Mr Ryan Richard Mount were re-elected at the last

Annual General Meeting. The non-executive directors

and executive directors are appointed for a period of

three years.

Directors’ interests

Details of share options scheme of the Company and

performance rights are set out in the 2014/15 annual

report of the Company.



Save as disclosed above, at no time during the year was

the Company or any of its subsidiaries a party to any

arrangement to enable the Company’s directors to acquire

benefits by means of the acquisition of shares in or

debentures of the Company or any other body corporate,

nor were any such rights exercised by them.

Directors’ interests in transactions,

arrangements or contracts

Save as disclosed in Note 22 to the financial statements,

no director had a material interest, either directly or

indirectly, in any transactions, arrangements or contracts

of significance to the business of the Company to which

the Company’s subsidiaries was a party during the year.

Business review

Review of the Company’s business

The Company’s vision and strategy is to:

develop mineral deposits in the Asia Pacific region into

medium and long term tier 1 assets

partner with Australian communities and governments

provide and implement effective sustainability programs

in communities where it operates

maximise shareholder returns through cost effective

exploration and growth through robust project


The Company’s investments are still in the exploration

phase of mineral deposit development, and it has

accordingly recorded a net loss of AU$10,390,000 for

the year. It has no other source of income. The financial

position of the Company showed a strong improvement,

with net assets increasing during the year from

AU$1,158,000 to AU$5,201,000 at 30 September 2015.

Funding for the net operational cash outflows of

AU$4,359,000 was provided through successful capital

raisings of AU$7,920,000, and increased borrowings

of AU$6,080,000. During the year AU$10,525,000

was advanced to certain subsidiaries for their ongoing

operations, mainly in exploration activity.

The Company is confident of its ability to continue to raise

additional share capital by share placements, options,

convertible notes, or rights issues.

The Company has a low gearing ratio (borrowings:equity)

of only 22%, a substantial improvement from 2014 (59%).

Principal risks and uncertainties facing

The Company is exploring a nickel laterite deposits in

the Solomon Islands (‘Isabel Nickel Project’). A major

risk to the value of the Company’s major investment’s

(Isabel Nickel Project) immediate development future is

the outcome of the appeal with SMM Solomon Limited

(‘Sumitomo’) related to the Solomon Islands Court Case

258/2011. The Court of Appeal has reserved judgement

and no ruling has been handed down at the date of

this report.

Low nickel prices are not expected to adversely impact

the economic viability of the Isabel Nickel Project due to

the low cost nature of the proposed operation.

The ability to attract suitable staff to remote areas can be

uncertain, but three industry experts were appointed to

the Axiom Mining executive management team to position

for growth in the Solomon Islands.