Annual Report 2016
Perth, Aug 4, 2016 AEST (ABN Newswire) - Strategic Elements Ltd (
ASX:SOR) submit the annual financial report of the consolidated entity comprising Strategic Elements Limited and the entities it controlled during the financial year ended 30 June 2016.
Review of operations
The Company is registered as a registered Pooled Development Fund (PDF) under the Australian Government's Pooled Development Fund Act 1992 ("PDF Act"). The Company invests into small to medium sized Australian companies to assist in the development or expansion of the company.
Technology
The Company, through its subsidiary Australian Advanced Materials (AAM) has rapidly developed the Nanocube Memory Ink under research and development agreements with UNSW. The Nanocube Memory Ink development program is ongoing for the duration of 2016, the Company will continue to advise shareholders of key achievements.
The Company announced on 20th of May 2016 that the existing licence agreement with UNSW for the Nanocube Memory Ink will fall away and full ownership will be passed over to AAM.
This is significant for the Company and is a result of the strong working relationship between the Company and UNSW. Additionally, having full ownership will significantly aid the Company to form global partnerships with other companies in the Printed Electronics sector and enable other corporate activities.
Resources
The Company pursued a deliberate strategy to position investments in both the technology and the resources sectors. The Board believes shareholders will ultimately benefit from the fact that a PDF is able to invest across multiple sectors.
The Company, through its investees Strategic Materials Pty Ltd (SML) and Maria Resources Pty Ltd (MRL) has continued to progress the Company's resource projects - Golden Blocks, the Officer and Impact projects.
- Golden Blocks: SML is still progressing work within Golden Blocks whilst negotiating and consultation continues with New Zealand Petroleum and Minerals over the granting of an Exploration Permit. At this stage the Company expects the new permit to be granted by late 2016. During the FY16 period, SML has continued work on Golden Blocks with various consultants in an effort to prepare for exploration activities and further understand the geology of the Golden Blocks area.
Officer Project: The 700 km2 Officer Project is the first project developed in collaboration with world leading geologist Dr Franco Pirajno. After reviewing the limited exploration within a 54,000km2 area the Company discovered highly anomalous copper in several historic drill holes drilled 8km apart, which confirmed the Company's position and provides a clear exploration focus.
The Company will continue to work through the remaining considerations with respect to finalising the final Officer Exploration Licences.
- Impact Project: The Ilkurka Project and the Lennis Project are the two impact projects covering potential impact structures. The Company is currently waiting for Exploration Licences to be granted before conducting fieldwork.
Corporate
During the year the Company raised the sum of $6,400,499 before issue costs through the issue of 55,656,511 shares at an issue price of 11.5 cents per share.
During the year shareholders approved the issue of 9,000,000 Performance Rights (PRs) (and the issue of shares following the vesting of those Performance Rights) under the terms of the Strategic Elements Performance Rights Plan. The issue offer was accepted by Directors on 22 December 2015.
During the year 1,000,000 unlisted options were issued to an employee of the Company. The unlisted options have an exercise price of 15 cents and an expiry date of 15 May 2018.
Operating result for the year
The consolidated entity's loss for the year ended 30 June 2016 was $1,637,199 (year ended 30 June 2015: $921,439).
Review of financial condition
At 30 June 2016, the consolidated entity had $7,273,194 in cash and term deposit balances (30 June 2015: $2,149,278).
Significant changes in the state of affairs
In the opinion of the directors there were no other significant changes in the state of affairs of the consolidated entity that occurred during the year.
Significant events after balance date
Subsequent to the balance date the Company issued 500,000 shares on the exercise of 500,000 options exercisable at 10 cents per share. 700,000 options, exercisable at 10 cents per share, also expired subsequent to the balance date.
No matters or circumstances have arisen since the end of the year which significantly affected or may significantly affect the operations of the consolidated entity, the results of those operations, or the state of affairs of the consolidated entity in future financial years.
Likely developments and expected results
Disclosure of information regarding likely developments in the operations of the consolidated entity in future financial years and the expected results of those operations has been made in the Review of Operations above.
Environmental legislation
With respect to its environmental obligations regarding its exploration activities the consolidated entity endeavours to ensure that it complies with all regulations when carrying out any exploration and evaluation activities and is not aware of any breach as this time.
Indemnification and insurance of Directors and Officers
The Company has entered into Director and Officer Protection Deeds ("Deed") with each Director and the Company Secretary ("Officers"). Under the Deed, the Company indemnifies the relevant Officer to the maximum extent permitted by law against legal proceedings, any damage or loss incurred in connection with the Officer being an officer of the Company. The Company has paid insurance premiums to insure the Officers against liability arising from any claim against the Officers in their capacity as officers of the Company.
Dividends
No dividends have been paid or declared in the year.
To view the Annual Report, please visit:
http://abnnewswire.net/lnk/7Z6B1G19
About Strategic Elements Ltd
Strategic Elements (ASX:SOR) shares are listed on the Australian Stock Exchange under the code “SOR”. The Company is registered under the Pooled Development Program run by the Australian Federal Government to encourage investment into SME’s. To assist Pooled Development Fund’s to invest and raise capital, the Federal Government enables most shareholders in a Pooled Development Fund to make capital gains and receive dividends tax-free.
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