Page 50 - Sundance Resources Ltd Annual Report 2013

48 SUNDANCE RESOURCES LIMITED ANNUAL REPORT 2013
The total loss for the period amounted to $31.6M compared to a loss incurred during the 2012 financial year
of $25.3M.
Included in comprehensive income for the 2013 financial year is an exchange gain on translation of foreign
operations. This gain amounted to $42.6M (2012: loss $13.5M) and is due to a movement in the Central African
CFA francs5 against the Australian Dollar from 541:1 at 30 June 2012 to 461:1 at 30 June 2013.
Cash and cash equivalents reduced during the financial year to $19.6M from $59.1M, the consolidated statement
of cash flows indicates that expenditure was directed towards exploration and development activities on the Project
of $25.5M (2012: $40.9M) and payments to suppliers and employees $21.1M (2012: $19.7M).
The financial position of the Consolidated Entity as at 30 June 2013 remains positive. Net assets of the Consolidated
Entity amounted to $242.3M (2012: $228.0M). Mine development assets increased to $225.0M (2012: $164.0M)
of which $35.5M is as a result of the movement in the exchange rate noted above.
Business strategies and prospects for future financial years
Sundance’s business strategy is focussed on the development of the Project. The achievements of the past
12 months mean that many of the pre requisites required to obtain project funding, proceed to project
development and to construction are largely in place. On this basis the business strategy approved by the Board is:
1. Maintain business relations and protection of key assets in Cameroon and Congo.
2. Retain key staff who are integral to the development of the Project and relationships in country.
3. Prudently control cash flow and continuously look for cost reductions which include cost of overheads, cost
of labour, cost of contractors and consultants, reduction of cash payments related to payment of employee
incentive schemes and a pay freeze into 2014.
4. Mandate expert support with thorough knowledge of international markets, Chinese construction and Chinese
steel mills, funding relationships and knowledge both internationally and in China with payment based on
successful project completion.
5. Financially separate the development of the infrastructure to the mine development and its associated
iron ore product sales.
6. Continually and pragmatically look for opportunities to ensure shareholder value is enhanced.
directors’ report (continued)
FOR THE YEAR ENDED 30 JUNE 2013
6. DIRECTORS’ MEETINGS
The number of directors’ meetings (including meetings of committees of directors) and number of meetings attended
by each of the directors at the directors’ meetings and of members at the meetings of the committees of the
Company during the financial year were:
Director
Directors’
Meetings
C
Audit & Risk
Management
Committee|
Meetings
Nomination &
Remuneration Com-
mittee
Meetings
Project Oversight
Committee
Meetings
A B A B A B A B
Mr G Jones 14 15 - - - - - -
Mr G Casello 14 15 - - - - 5 7
Mr M Blakiston 12 15 3 4 - - - -
Mr B Eldridge 15 15 4 4 3 3 6 7
Ms F Harris 13 15 4 4 3 3 - -
Mr A Marshall 12 15 - - 3 3 7 7
A - Number of meetings attended
B - Number of meetings held while the director held office
C - Events during the year required the calling of many unscheduled directors’ meetings at short notice and at times when certain directors were unavailable to attend
Bolding of the number of meetings attended denotes the Chairman of the Board or Board Committee.
In addition to the above meetings, a number of matters were dealt with by way of circular resolution during the year.
5. REVIEW OF OPERATIONS (continued)
5 The Central African CFA franc has a fixed exchange rate to the euro, 1 euro = 655.957 CFA francs exactly.