Axiom 2014 Annual Report - page 31

29
2014 Annual Report
continued
Corporate Governance
The Company officers and employees are required to act
in accordance with the law and with the highest ethical
standards and in compliance with Australian and the
laws of each country in which it operates. In addition to
the Trading Policy, on joining the Board, the Directors are
required to sign a Director’s disclosure statement. This
sets out their obligations regarding disclosure of dealing
in the Company’s securities.
Each quarter at formal Board meetings or other
meetings when convened Directors are required to
make disclosures of any matters that may have altered
or where any matter to be discussed by the Board might
give rise to a conflict of interest. Where a conflict of
interest may arise the relevant Director(s) may be asked
to leave the meeting to ensure full and frank discussion
of the matter(s) under consideration for determination.
Shareholder communication
The Board strives to ensure that shareholders are
provided with sufficient information on a continual
basis to assess the activities and performance of the
Company and its Directors to enable shareholders to
make well informed investment decisions. Information
is communicated to shareholders through:
––
quarterly, half-yearly and audited annual
financial reports;
––
annual and other general meetings convened for
shareholder review and where necessary approval
of Board proposals;
––
continuous disclosure of material changes to the
ASX for open access to the public, as set out in the
Company’s continuous disclosure policy; and
––
the Company’s website at
where all ASX announcements, notices and financial
reports are published as soon as possible after
release to the ASX.
The auditor is invited to attend the Annual General
Meeting of shareholders.
Risk factors
There are a number of risk factors that may affect the
financial performance of the Company and the value of
an investment in shares issued in the Company. While
some of these risks can be minimised, some are outside
the control of the Company. There are also specific risks
associated with the Company’s business and investment
in the mineral exploration and mining industry and in
the jurisdictions in which it operates including but not
limited to sovereign risks.
Business risks
Exploration
The business of mineral exploration, project
development and mining, by its nature, contains
elements of significant risk with no guarantee of success.
There is no assurance that exploration on any of the
Company’s projects described in this report, or on any
other projects that may be acquired, will result in the
discovery of a mineral deposit. If there is a discovery,
it may not prove to be economically viable to exploit
the discovery.
General mineral operation risks
The business of the Company may be disrupted by
a variety of risks and hazards, which are beyond
the control of the Company, including sovereign or
political risks, environmental hazards, industrial
accidents, technical failures, labour disputes, unusual
or unexpected rock formations, severe seismic activity,
flooding and extended interruptions due to inclement or
hazardous weather conditions, fire, explosions, customs
and port delays. These risks and hazards could also
result in damage to or destruction of mining facilities,
personal injury, environmental damage, business
interruption, monetary losses and possible legal liability.
Development capital costs
Should the Company be successful with exploration, the
capital cost of the Company’s future mine development
could vary with changes in a variety of factors,
including exchange rates that affect imported capital
equipment prices, geological and technical conditions
encountered during drilling and mine development,
and the construction of new production facilities. A
substantial development cost overrun could have a
material adverse effect on the Company. At the current
stage of development of the Company’s operations, mine
development and production related risks are low but
this is expected to change over the next one to two years.
Resource estimates
In this report and in future reporting by the Company,
references to reserves and resources and their
classifications, are in accordance with the Australasian
Code for Reporting of Mineral Resources and Ore
Reserves (“
JORC Code
”). Estimates are expressions of
judgement based on knowledge, experience and industry
practice. Estimates, which were valid when made, may
change significantly when new information becomes
available. In addition, resource estimates are necessarily
imprecise and depend to some extent on interpretations,
which may ultimately prove to be inaccurate.
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