2013 ANNUAL REPORT - AAMEG€¦ · Lockton Companies Level 1, 50 Subiaco Square Road, SUBIACO WA...

Countries in which our member companies operate

2013 ANNUAL REPORT

2 | AAMIG 2013 ANNUAL REPORT

1. Corporate Directory ................................................................... Page 53. Chairman’s Report ..................................................................... Page 64. ChiefExecutiveOfficer’sReport ................................................ Page 75. TheYearInReview ..................................................................... Page 8

a. Who We Are .......................................................................Page 8b. OurLong-TermObjectives ..................................................Page 9c. How We Operate ..............................................................Page 10d. Achievementsfor2012/2013 ...........................................Page 11e. MeasuringOurPerformance ............................................Page 19f. OurShort-TermObjectives ...............................................0g. Our People .......................................................................Page 22

6. Directors’ Report ...................................................................... Page 237 Financial Statements ................................................................ Page 31

a. StatementofComprehensiveIncome .............................Page 31b. StatementofFinancialPosition .......................................Page 32c. StatementofCashFlow ...................................................Page 33d.NotestoandFormingPartoftheFinancialSatements ...Page 34e. Directors’Declaration ......................................................Page 38f. Auditor’sReport ...............................................................Page 39

8. Sponsorship and Support ........................................................ Page 41

AAMIG 2013 ANNUAL REPORT | 3

Table of Contents

1. Corporate Directory ................................................................... Page 53. Chairman’s Report ..................................................................... Page 64. ChiefExecutiveOfficer’sReport ................................................ Page 75. TheYearInReview ..................................................................... Page 8

a. Who We Are .......................................................................Page 8b. OurLong-TermObjectives ..................................................Page 9c. How We Operate ..............................................................Page 10d. Achievementsfor2012/2013 ...........................................Page 11e. MeasuringOurPerformance ............................................Page 19f. OurShort-TermObjectives ...............................................Page 20g. Our People .......................................................................Page 22

6. Directors’ Report ...................................................................... Page 237 Financial Statements ................................................................ 1

a. StatementofComprehensiveIncome .............................Page 31b. StatementofFinancialPosition .......................................Page 32c. StatementofCashFlow ...................................................Page 33d.NotestoandFormingPartoftheFinancialSatements ...Page 34e. Directors’Declaration ......................................................Page 38f. Auditor’sReport ...............................................................Page 39

8. Sponsorship and Support ........................................................ Page 41


THIS IS YOUR INDUSTRY GROUP

– WE ARE HERE TO

SUPPORT YOU.


Corporate Directory .............................................Australia-AfricaMiningIndustryGroupLimited ACN150520862

ChiefExecutiveOfficer .........................................TrishO’Reilly

Directors ...............................................................BillTurner(Chairman) TimCarstens MarkConnelly Philippa Leggat Bill Repard RobSlater PeterSullivan GillianSwaby AdelvanderWalt RickYeates

Company Secretary ..............................................GiovannyJefferson

RegisteredOffice .................................................. Suite9,1297HaySt WestPerthWA6000

Postal:POBox1018,WestPerth, WesternAustralia,6872

Tel:(+618)92260175 Fax:(+618)93210426

Email:[email protected] Website:www.aamig.com

Auditors................................................................Deloitte Level14,240StGeorgesTerrace PERTHWA6000

LegalAdvisors ......................................................ClaytonUtz QV.1,250StGeorgesTerrace PERTHWA6000

Bankers.................................................................CommonwealthBankofAustralia 1254HayStreet WESTPERTHWA6005

Insurance Brokers ................................................ LocktonCompanies Level1,50SubiacoSquareRoad, SUBIACOWA6008

AnnualGeneralMeeting ..................................... TheAnnualGeneralMeetingwillbeheldonWednesday27November2013at4.00pm.

Thevenueforthemeetingis38StationStreet,Subiaco,WesternAustralia,6008

Corporate Directory


FortheAustralianminingindustrytobesuccessfulinAfricainamannerthatissustainable,itmusthaveacapacitytodealeffectivelywithawiderangeofAfrica-specific,non-technicalriskissues,suchaspoliticalandsocialrisk,extremepovertyandthebehaviouritpromotes,institutionsthatoftenlackcapacity,healthandsecurityissues,bribery and corruption issues, and the occasional unpredictable behaviour of host-country security forces.TheAustralia-AfricaMining IndustryGroup (“AAMIG”)was formed to assist Australian andAustralian-basedcompaniesinvolvedintheminingindustryinAfrica,tobetterunderstandanddealwiththeseissuesinamannerthatisconsistentwithinternationalbestpracticeandinamannerthatcreatesandprotectsvalue.

In its relatively short two-and-a-half years since incorporation, AAMIG has been able to provide significantguidancetomembersonnon-technicalriskissues,andthroughseminarsandworkshops,hasmadeavailabletheexperienceofthosewhohavebeeninAfricaforsometime,tothosewhoaremore-recententrants.AAMIGhasalsoimprovedtheconnectionsbetweentheminingindustryandgovernments,governmentagencies,not-for-profitorganisationsandacademia.

TheappointmentofTrishO’ReillyasChiefExecutiveOfficerinMarch2013isareflectionoftheprogresstheorganisationhasmadeandwiththesupportofherteamandBoardmembers,shouldseeAAMIGcontinuetodevelop,withincreasingdetermination,toreachitsfullpotential.

As an industry involved in contributing to the societies inwhichweoperate,weneed to identify and focusmoreonopportunitiestocreatesharedvalue-wheresocialdevelopmentandCSRendeavourshavemeaningfulbenefitsforsociety,andarealsovaluabletobusiness.Somerefertothisasenlightenedself-interest.Whateveritiscalled,iftheactivitycreatessharedvalue,itwillcontinuetobesupported.

It’sthebasicbusinesscase;contributemeaningfullytothelocalcommunitiesinwhichweoperate,buildandmaintainasociallicencetooperate,reduceinvestmentandoperatingrisk,andmakeourbusinessactivitiesandgrowthintothefuture,sustainable.Insodoing,wewillalsosatisfythereasonableexpectationsofsociety.

Wethankourmembersfortheiractiveengagementandsupportfortheorganisation,andgivespecialthankstothosewhohavecontributedtoourseminarsandworkshops,thosewhohaveprovidedprobonosupportinvariousforms,andthosewhohaveprovideddirectfinancialsupport.Anumberofthesecontributionshavebeenandcontinuetobe,quitesubstantial.Asincerethankyou.

Bill TurnerChairman

Chairman’s ReportCh

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It is a pleasure to present to you the first Annual Report of AAMIGwhich details our achievements in the 2012-13 financial year, outlines the positive progresswe havemade and embraces positive growthmovingforward.

Overthepast20years,AustralianminingandexplorationcompanieshavehadadramaticallyincreasingroleinexploringanddevelopingminingprojectsontheAfricancontinent.WithencouragementfromtheDepartmentofForeignAffairsandTrade(“DFAT”),AAMIGwasestablishedin2010,followedbyformalincorporationinApril2011.AAMIGisnowthepeakindustryrepresentativebodyofAustralianmining,exploration,serviceandsupplycompaniesworkinginAfrica.

Intoday’senvironment,acompany’skeycompetitiveadvantageisjustaslikelytobetheabilitytomanageitssocialandpoliticalrisks,asitsabilitytofindandextractaresource.Ourpurposeistobeasignificantvoicefortheindustry,facilitatingstrategicpartnerships,supportingeducationandtraining,promotinggoodbusinesspracticeandencouragingpositivedevelopmentatthelocallevel.

SincetheestablishmentoftheChiefExecutiveOfficerpositionandtakingupthisroleinlateMarch2013,thefocushasbeenonclearlydefiningtheroleandscopeoftheorganisation,developingavaluepropositionformembers,creatingbrandrecognitionandbuildingthemembership.

Inordertobefinanciallyviable,AAMIGneedstobuilditsmembershipnumberstoaround200,withafocusonminingandexplorationcompanies. Membershiphasgrownfrom66members inJuly2012to111membersattheendofJune2013.TheeconomicdownturnhashadaneffectonmembershipgrowthhoweverwewillcontinuetopromotethebenefitsofAAMIGmembership,andexpandourservicestomeetthedemandfromourmembers.

Inrelationtomembershipvalue,wehavedevelopedacalendarofeventsandaimtoputonrelevantseminarsandworkshopsonaregularbasis.WealsocontinuetoholdtheverysuccessfulCelticClubnetworkingsessionsonabi-monthlybasis.Throughthesesessionsandcontinualliaisonwiththeindustry,weareclearlydevelopingpositivebrandrecognition.Thiswasdemonstratedthrougharecentmembersurveywhichreportedthatjustover90%of respondentswereeither satisfiedorvery satisfiedwith theirAAMIGmembership. Workshops,accesstogovernmentandnetworkingwereseenasthemostvaluedmemberbenefits.

WewillcontinuetostrivetomeetyourneedsandplacetheAustralianminingindustryworkinginAfricaclearlyontheglobalmapasleadersofexcellenceandoutstandingcorporatecitizens.

Iwouldparticularly liketothankthemanyminingandservicecompaniesthathaveembracedourworkandsupportedourgrowth,theAAMIGBoardandinparticularthemembersoftheexecutiveteamatAAMIGwhoworktirelesslytoensurethatweprovideahighlevelofsupportandservicetotheindustry.

TrishO’ReillyChiefExecutiveOfficer

Chief Executive Officer’s Report

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WHO WE ARE

Incorporated in2011, theAustralia-AfricaMining IndustryGroup is thepeak industrybody representing thecollectiveinterestsofAustralianmining,exploration,serviceandsupplycompanies,activeinAfrica.

Todaytherearemorethan220ASX-listedminingrelatedcompanieswithapresenceinAfrica.Ourpurposeistosupportmembercompaniestodeliversuccessfuleconomicandcommunitydevelopmentoutcomesinthevicinityoftheiroperations.

AAMIG embodies the following values and seeks to lead by example:

Respect: Treat others with respect and value the contributionsmadebyothers.

Integrity: Demonstrate open and accountable practices throughhonestandtransparentdecisionsandactions.

Innovation: Draw on sound experience and progressive thinking todeliverbetter-informedresponsestoemergingissues.

Impact: Seek to make a meaningful and enduring positivedifferenceinpeople’slives.

Social Justice: Embraceandprovidediversityandsocialjustice.

Collaboration: Engagewithothersaboutmatters likely to impact theirlives and establish partnerships to deliver improvedsharedbenefit.

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OUR LONG TERM OBJECTIVES

Focusingonsocialinvestment,security,corporategovernanceandpoliticalrisk,weprovideguidanceonleadingpracticeincorporatesocialresponsibilityandissuesspecifictodoingbusinessinAfrica.Throughthelifecycleofexploration,construction,operationandmine-siteclosure,wearecommittedtoensuringcompaniesgainandmaintaina“sociallicencetooperate”.

Importantly,we supportmember companies inaligning theexpectationsofhost communities, governmentsandsocietytocreatesharedvalueandstimulatecapacitybuilding.Wefacilitatetheexchangeofideasandmakeavailablecriticalinformationfortheindustry.

Toachievetheseobjectives,weaimto:

• BuildthecapacityofAAMIGtoassistmembersinachievingworld-classeconomicdevelopmentontheAfricancontinent,inanethicallyandsociallyresponsiblemanner.

• Enhancetheawarenessofmembercompaniestoopportunitiesthatwillstrengthentheirsociallicencetooperateandalsotoassistinbuildingmembercapacityincriticalareasofstakeholderengagement,socialdevelopment,humanrightsandgovernance.

• FacilitatetheestablishmentofstrategicpartnershipsinvolvingAustralianFederalandStateGovernments,Non-GovernmentOrganisations(NGOs)andacademia,whichresult in improvedoutcomesthatmeetthedevelopmentexpectationsofmembercompanies,hostgovernmentsandsociety.

• Gowellbeyonda“donoharm”approachbybeingaleaderinhowthedevelopmentofAfrica’smineralresourcescanbeachievedinatrulysociallyresponsiblemanner,makingAAMIGmembers“PartnersofChoice”and“EmployersofChoice”.

• Builda“TeamAustralia”approachthatwillbeofbenefitto,andsupportedby,allstakeholdersincludingmembers,Governments,NGOsandacademia.

The greatest good you can do for another is not just to share your riches but to reveal to him his own

– Benjamin Disraeli

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HOW WE OPERATE

AAMIGGovernance/Strategy/Partnerships/Programdevelopment

Members

AdvocacyInfluencerelevant

governmentpolicyinAustralia

andAfrica

AdvisoryTo capture and sharerelevantinformationand

know-how and to increaseawareness

FacilitationTo build

relationshipsandconnectleveragedorganisationsand

individuals.

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Advocacy:

ACHIEVEMENTS FOR 2012/13

SignificantMeetingsAttended

• July2012–BeninAmbassadortoUnitedNationsvisittoPerth,hostedbyDeloitte,Perth.

• August2012–AusAIDConsultativeForumwithBusinessmeeting,Canberra.

• August2012–GryphonMineralsInvestmentdinner,Perth.

• August2012–InternationalMiningforDevelopmentCentre(“IM4DC”)Roundtable,Perth.

• August2012–AustralianStrategicPolicyInstitute(“ASPI”)meeting,Perth.

• October2012–BreakfastmeetingtointroducethenewlyappointedAustralianHighCommissionertoGhana,HEJoannaAdamson.

• November2012–HEJaneHardy,AmbassadorDesignatetoEquatorialGuinea,Perth(non-resident).

• November2012–LaunchofTransparencyInternationalPerthChapter,Perth.

• December2012–AusAIDConsultativeForumwithBusinessandCardno,Canberra.

• January2013–meetings inbothCanberraandPerthwithAmbassadorMarkosTekleRike, from theEthiopianEmbassy.

• February2013–AAMIG,DFAT,HOMs,AusAID,AustrademeetingduringIndaba,CapeTown.

• February2013–KenyanDelegationvisittoAAMIG,Perth.

• March2013–ASPIdinnerinpreparationforAustralia-AfricaDialogue,Perth.

• March2013–ChamberofCommerceandIndustry(WA)luncheonwithBobGeldof,Burswood,Perth.

• April2013–CEDASeminar–Africa:TheNextDecade,chairedbyBillTurneratDeloitteinPerth.

• May2013–AttendanceattheInternationalMiningforDevelopment(“IM4DC”)NationalConferenceinSydney.

• May2013–ExtractiveIndustriesTransparencyInternational(“EITI”)InternationalConference,Sydney.AAMIGpresentedastatementofsupportandisnowasupportingorganisationofEITI.

• May2013–OxfamMiningSymposium“SustainableMining–FPIC”attendedbyTrishO’ReillyandAAMIGmembersTigerResources&MMG,inMelbourne.

• June2013–MeetingwithIanMacfarlane,OppositionspokespersononResourcesandEnergy,Canberra.

• June2013– Individualmeetings JulieBishop,DeputyLeaderof theOpposition (then),andTheHon.ColinBarnett,PremierofWesternAustralia.

• AttendingregularmeetingscoordinatedbytheWesternAustralianDepartmentforStateDevelopment,Perth.

• Establishingkeystrategicpartnerships:WesternAustralianDepartmentofAgricultureandFood;CurtinUniversity,Perth.

• June2013–InternationalCouncilonMiningandMetals(“ICMM”)withtheaimofexploringAssociatemembership.

to influence relevant government policy in Australia and Africa.

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SubmissionstoFederalGovernment

AAMIGhascontinuedtomakerelevantsubmissionstogovernment,including:

• ProposalforAustraliatobeaMemberoftheAfricanDevelopmentBankGroup(August2012).

• BriefingPaperonInvestmentClimateissuesinLiberia(August2012).

FacilitationPaymentDebate

AAMIGrecognisestheimportanceofinitiativestoreducebriberyandcorruptionandtoimprovethepracticesofcompaniesoperatingincountrieswheretheseissuesareparticularlyproblematic.Itrecognisesthatbriberyandcorruptionimpedeseconomicdevelopment,particularlyindevelopingcountries,andnotestheimportanceofgoodgovernanceprinciplesandappropriatelymanagedforeigninvestmenttodriveeconomicprosperityandraiselivingconditions.

AAMIG has delivered a number of informative workshops on these issues and has kept the issue on thepolitical agenda. ClaytonUtz provided a significant amount of pro bono support in the initial stages of thiswork.AAMIGhasdeliveredpresentationsontheseissuesinconjunctionwithlawfirmsClaytonUtzandMinterEllison,internationalNGOTransparencyInternational,accountancyfirmsBDOandDeloitteandtheAustralianGovernmentagencyAustrade.

Performance Details

During2012/13wesignificantlyincreasedthenumberoforganisationsweengagedwithinourroleofadvocatingonmemberissues.

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Workshops

AAMIGhasheldworkshopsontopicsidentifiedasbeingrelevanttothemembership.ParticipantsatallAAMIGworkshopsandseminarsarerequestedtocompleteanevaluationform.Oftheworkshopsheldthisyear,over90%ofattendeesfeltthattheirexpectationsweremetorexceeded,andover80%ofattendeesattheworkshopsweremembers.Workshopsincluded:

• 26 March 2013 - Corporate SocialResponsibility Strategy Workshop - A CSRworkshop was presented by Craig Saltand Michelle McManus from SustainableConsulting which guided attendeesthrough the various stages of developing,implementingandmaintainingaCorporateSocial Responsibility programme to enablethebuildingofaSocialLicencetoOperate.

• 15May2013-Working inAfrica - AAMIG was contacted by the Graduate School ofGovernment, University of Sydney, andasked to provide a presentation to visitingdelegates fromAfrica. This proved tobe agreatopportunityforsomeofourmembers(Perseus,TigerandLycopodium)todiscussthe benefits and challenges faced whenworkinginAfrica.

• 15May2013-Security&HumanRights-CardnoheldaninformationsessionontheVoluntaryPrinciplesonSecurityandHumanRights(“VPSHR”)attheirofficeinWestPerth.TheVPSHRispartofAAMIG’sGuidingDocumentation.

• 21June2013-Anti-BriberyandCorruptionSeminar - AAMIG Chairman Bill Turnerpresented on the development of theanti-bribery regimes in the USA (FCPA),Canada (CPFOA), UK (Bribery Act) andAustralia, their extra-territorial reach, howthey are being enforced with increasingenthusiasm by regulatory authorities, andwhat companies working in Africa shouldbe doing in response. TheworkshopwashostedbyBDO.

• 15 August 2012 - Western Australian School of Mines (Curtin University) - AAMIG corporate socialresponsibilityworkshop,with support fromGolden Phoenix, ISOS,Middle Island Resources, EndeavourMining and Philippa Leggat.

Advisory: to capture and share relevant information and know-how and to increase awareness.

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Additionalpresentationswithvariouspartners:

• 18July2012-MEGWATechnicalMeetingattheIrishClub,Perth-BillTurnerpresentedtheAAMIGstorytoMEGWAattendeesfocussingontheconnectionbetweengoodCSRandinvestmentriskmitigation.Asurveywasconductedattheendofthispresentation,theresultsofwhichhavebeenpostedtotheAAMIGwebsite.

• 13September2012-ParticipationinAPPIANetworkingWASeminar-chairedbyTrishO’Reilly.

• 17April2013-InvestinginAfrica-Co-ordinatedbyMinterEllison:“Thebribestrippedbare”.TheSeminardealtwithissuesfacedbyAustralianentitiesoperatinginhigh-riskjurisdictions,withaparticularfocusonrecentinternationaldevelopmentsonanti-briberyandcorruptionlawsandtheactivitiesofoverseasregulators.

SocialDevelopmentProjectsandOpportunities

AnumberofsocialdevelopmentprojectopportunitieshavebeenpresentedtoAAMIGmembersincluding:

• DirectAidProgram(“DAP”)funding

The formalDAPprogramworkofAAMIG really commencedat theADUconference inAugust2011,duringwhichtimetheExecutiveTeammetwithrepresentativesfromtheAustralianGovernment(DFAT,AusAID, EFIC,Austradeand theHOMs toAfrica) todiscuss respectiveexpectationsand thepossiblewayforwardforimprovedcollaboration.Atthatmeeting,aproposalwasputforwardbyAAMIGforthedevelopmentofapartnership,beginningwiththegovernment’sengagementoftheAustralianminingsectorthroughsupportfortensocialprogramsofAAMIGmembercompanies.

TheoutcomeoftheDAPprocesswasthateightprogramsweresupportedsecuring$225,000ofFederalGovernmentfunding.Theseprogramswereundertakeninadditiontotheprogrammesalreadybeingundertakenbytheminingcompanies.ThisinitiativeisseenasbeingverysuccessfulbytheAustralianHeadsofMissioninAfricaandmembercompaniesareencouragedtoapplyonanongoingbasis.

• TheIDRAMinitiative

AAMIGparticipated in the InfectiousDiseasesRiskAssessmentManagement Initiative (IDRAM),heldbytheCentreforGlobalHealthSecurityinNovember2012,atChathamHouse,London.Theobjectiveof this initiative is to provide a platform for the extractive industries to interactwith policymakers,governmentsandscienceleaderstoexploretherisksandmanagementofinfectiousdiseaseoutbreaksintropicalregions.AAMIGisencouragingmembercompaniestoengageinapilotprojectandfundingsourcesarecurrentlybeingexplored.Afollow-upmeetingwasarrangedinCapeTownduringtheIndabaMiningConference2013.Theprogram leaderat thetime,DrStevenPhillipsmadeapresentationtosome45attendeesfromtheminingindustry.

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WebsiteandOnlineResourcesdevelopment

• Guiding documentation - AAMIG has chosen arelevant set of internationally accepted GuidingDocumentation to underpin the support offeredto member companies. To complement thisinformation,theAAMIGGuidetoBestPracticeandtheAAMIGGapAnalysisToolhavebeendevelopedwiththesupportofCoffeyMining,muchofwhichwasinitiallyonaprobonobasis.BothdocumentsareavailableontheAAMIGwebsite.

• Emailnewsbulletin-Thisbulletincontainsindustryitemsofinteresttomembersinaneasilyaccessedandattractive-to-readformat.

• Quarterly Newsletter - At the beginning of July2012, AAMIG issued its first printed Newsletter.FurthereditionswerereleasedinSeptember2012,November 2012, February 2013, April 2013 andJune2013.TheNewsletterhasbeencompiledwitha great deal of pro bono support from membercompanies. Copies of these publications can befoundontheAAMIGwebsite.

Performance Details

Duringthe2012/13yearwesignificantlyincreasedawarenessofissuesrelatingtomininginAfricathroughworkshopsandeducationopportunities.

Australian resource companies are world leaders with respect to technical competency, but few have really mastered the non-technical risk issues inherent to the African environment. At best, this lack of preparedness impedes their ability to fully realise the potential of Africa, but at worst it exposes them to potentially significant economic and personal liability.

– Professor Roberts, Curtin University Adjunct Professor

and World Bank Emissary.

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NetworkingSessions

AAMIGholds bi-monthly networking sessions at theCelticClub inWest Perth. These sessions areusedtohighlight companyexperiences, introducenewconcepts, and tonetworkwithothermembersonaninformalbasis.

Thefollowingsessionwereheldduringtheyear:

• 19July2012:

“WorkingwithAAMIGandAustralianGovernmentHeadsofMission todeliveraDirectAidProgram(DAP)ProjectinNamibia”-PeterKerr,CFOBannermanResources.

“Leavingapositivelegacyaftertheconstructionphase&reducinginvestmentandoperatingrisk”-PeterDeLeo,ExecutiveDirector,LycopodiumLtd.

“A lowunit-costopportunity for enhancing literacydevelopment” -Hank vanderMerwe,AustralianAmbassadoroftheTutudeskCampaign.

• 4September2012:ThisworkshopwasintroducedbyGaryBerson,ClaytonUtz.

“Advancingyour interestwhileprotectingyourreputationandyourbusiness inAfrica” -StevenFox,ManagingPartner,VeracityWorldwide,NewYork.

• 10October2012:

“Africa:How tomake thepotentiala long-termreality” - StephaneBrabant,HerbertSmithFreehills,Paris.

“History and challenges of development of the LumwanaCopperMine in Zambia.” - CraigWilliams,ChairmanofOrpheusGeoscience.

“ThelogisticalchallengesinvolvedinthesupplychaininAfrica”-ChrisColesofUTi(Australia).

• 13December2012:

“Financing projects in Africa” - Conrad Marais of Hunt & Humphry (now Hunt & Humphry TrinityInternationalLLP).

“Corporateandsocialresponsibility(CSR)andtherolethatagriculturecanplay.”-MarHubeofAGWESTFoodSecurity,WADepartmentofAgricultureandFood.

“ParticipatoryapproachesthataddvaluetoCSRprojectsinAfrica”-TheoNabben,PrincipalofSocialImpactConsulting.

“Alternativeriskmanagementsolutionsdevelopedand implemented inAsia,AfricaandthePacific” -CraigColemanofProfessionalServiceSolutions.

Facilitation: to build relationships and connect leveraged organisations and individuals.

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• 28February2013:

“Operating in Mali - the ResoluteExperience” - Peter Sullivan,ManagingDirector,ResoluteMining.

“State of theMarket in Africa” - PeterGodwinofIntierraRMG.

“Sustainable success: oxymoron orexciting opportunity?” - Craig Salt,DirectorofSustainableConsulting.

• 23April2013:

“PitfallsandBenefitsofWorkingtheCSRMinefield” - John Borshoff, ManagingDirectorofPaladinEnergyLtd.

“Why Have Projects Failed to MeetExpectations in the past 10 Years” -Malcolm Brown, President (Mining &Metals),AMEC.

“Project financing and meetinginternational social and environmentalstandards in Africa” - JohnMiragliotta,DirectorofSustainability.

**ThetotalnumberofattendeesatalltheAAMIGnetworkingsessionswas694;thisincludesbothmembersandnon-members

AAMIG is fast becoming an indispensable support organisation if you want to operate effectively in Africa - access to great resources along with practical and relevant seminars (free as well!), keep us up to date across a wide range of topics and key issues. Its advocacy role is becoming equally as important given the unique challenges of the sector. With the networking opportunities offered, you never feel like you are entirely alone dealing with some of the hard issues.

– John Borshoff, Managing Director/CEO, Paladin Energy Ltd

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• 27June2013:

“AhistoricalperspectiveonthecomplexityofAfrica”-MaxdeVietri,EMRResources.

“GoodBusiness,SustainableBusiness”-BradMarwood,ManagingDirectorofTigerResources.


MeetingswithAfricanGovernmentRepresentatives

AttherequestofDFAT,AAMIGarrangedmeetingsofmembercompanypersonnelwithAfricanGovernmentrepresentatives visiting Australia, including Robert Sirleaf, Senior Adviser to the President of Liberia andSylvesterGrigsby,DeputyForeignMinisterforLiberia(6July2012),Jean-FrancisRegisZinsou,Benin’sPermanentRepresentative to the United Nations (18 July 2012); Women from Africa (December 2012) and KenyanGovernmentrepresentatives(January2013).

Not-for-profitOrganisations

AsignificantnumberofmeetingshavebeenheldwithorganisationswithinterestsinAfricaforthepurposeofexploringpossibilitiesforpartnerships.TheseincludeTransparencyInternational,Oxfam,GlobalHealthAlliance,WorldVision,WheelchairsforKids,TutudeskCampaign,AustralianDoctorsforAfrica,BicyclesforHumanityandRoom to Read.

AttendanceatRelevantConferencesandSeminars

• 28August2012 -ADUResearchForum-AAMIGwasakeypartner in facilitatingtheAfricaAustraliaResearchForumheldprior toADU. This forumallowedforpositivediscussionamongstgovernmentrepresentatives, academia, the not-for-profit sector and themining sector. AAMIG chaired the thirdPaneldiscussiononCSRandarrangedforthefollowingspeakers:TimCostelloofWorldVision,ElainePriorofCitibank,JohnBorshoffofPaladinandSkyeGilliganofGlobeMetalsandMining.

• 29-31August2012-AfricaDownUnderconference-AAMIGhadaboothandaspeakingslotattheADUConference. TheAAMIGboothattractedasignificantamountofattentionandtheengagementwithindustryparticipantswaspositive.Anumberofnot-for-profitorganisationssharedtheAAMIGbooth,includingTutudesks,WheelchairsforKids,GlobalHealthAlliance,BicyclesforHumanityandRoomtoRead.

• February 2013 - IndabaMining Conference, Cape Town - AAMIG had limited representation at thisconference.AAMIGfacilitatedapresentationontheIDRAMInitiativebyDrStevenPhillipsofChathamHousetominingindustryrepresentatives.AmeetingofAAMIGmemberswasheldwithDFAT,AusAID,AustradeandAAPFrepresentatives,chairedbyHEGraemeWilson,HighCommissionertoSouthAfrica.

• Australia Africa Business Council - AAMIG has had numerous contacts with representatives fromstatebranches. A jointmeetingwasheld inMay2013 inSydneywith theNewSouthWalesbranchrepresentatives.

Performance Details

Duringthe2012/13yearAAMIGsignificantly increasedthenumberofsessionshostedandconferencesactivelyparticipatedin.Wealsoformedanumberofproductivepartnershipswithrelevantorganisations


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MEASURING OUR PERFORMANCE

2012/13wasabusyyearasAAMIGworkedacrossanumberofdifferentpoliciesandenhancedourmemberservices.

Wemeasuredourperformanceintheseareasthrough:

• Significantmembershipgrowth.

• Hostingvaluablememberevents(asdeterminedbymembers).

• IncreasednumberofpolicyrelatedsubmissionstoGovernment.

• Increasedmediaexposureasmeasuredbynumberofinterviewsandprofilingopportunities.

• Significantfinancialgrowth.

• Highlevelofmembersatisfactionasmeasuredthroughfeedbackmechanisms.

• Recognitionofbrandasmeasuredbynumberofrequestsformeetingsandpartnershipswithexternalorganisations.

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wBy promoting adherence to best-practice guiding principles and building alliances among member companies, Australian and African Governments, NGOs and academia, we are positioning the Australian mining industry in Africa as a desirable and socially responsible global investor.

– Trish O’Reilly – Chief Executive Officer, AAMIG

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OUR SHORT TERM OBJECTIVES

Duringthenext12monthswewillfocuson:

• Continuingtoworktowardslong-termfinancialself-sustainabilitythroughbuildingour membershipbaseby:

-Hostingaminimumofthree,new-memberfunctions,

-Identifyingandapproachingpotentialmembers,

-Increasingnetworkingwithpossiblepartners.

• Increasingournumberofworkshopofferingsinresponsetomemberdemand.

• IncreasingourpresenceontheEastCoastofAustralia.

• EstablishinganAfricanGovernment“Associate”membershipcategory.

• Developingrelevantuser-friendlytoolkits/frameworktoguidegoodpractice.

• DefiningaspecificAGWESTagricultureprojectthatcanbeworkedonjointlywithkeypartners.

• DeveloptheIDRAMinitiativeintoapilotproject.

• Identifyinganddevelopingakeystakeholderpartnershipwithanacademicinstitution.

• Exploringadditionalkeypartnerships.

• BeingrecognisedasavaluableresourceforcompaniesoperatinginAfrica(asmeasuredbytheannualmembersatisfactionsurvey).

JohnBorshoffManagingDirector,PaladinEnergyLtdpresentingatCelticClub,23rdApril,2013

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MEMBERSHIP FEE STRUCTURE

MembershipofAAMIGisbasedonmarketcapitalisationforcompaniesthatarelistedandotherparametersforthosenotlisted,asfollows:

• Lessthan$100millionmarketcapitalisation ....................................................................... $2,750

• $100millionto$1billionmarketcapitalisation ................................................................... $5,500

• Greaterthan$1billionmarketcapitalisation ...................................................................... $8,250

• PrivateService&Supplycompanies(>25employees) ........................................................ $3,300

• PrivateService&Supplycompanies(<25employees) ........................................................ $1,500

• Individuals ............................................................................................................................... $500

AAMIGisanot-for-profitpubliccompanylimitedbyguaranteesubjecttotheprovisionsoftheCorporationsActsandregulatedbytheAustralianSecuritiesandInvestmentsCommission.AAMIG,however,isnotataxdeductibleorganisationduetothenatureoftheCompanyandcertainactivities.

AsperAAMIG’sconstitution,whichmembersagreetoadheretouponapplicationformembership,eachmember(andcertainformermembers)ofAAMIGundertakestocontributeanamountofupto$10intheeventoftheCompanybeingwoundup,subjecttocertaintermsandconditions.Additionally,anyremainingassetsoftheCompanywillbetransferredtootherinstitution(s)whoseobjectivesaresimilartothoseofAAMIG’sandwillnotbedistributedtomembersuponwindingupordissolution.

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wJunior mining companies cannot be expected to solve all the social and economic issues in the vicinity of their operations. Better results are likely to be achieved by building strategic alliances such as this one – developing more of a team Australia approach to investing in Africa.

Trish O’Reilly – Chief Executive Officer, AAMIG

“ “


OUR PEOPLE

TheBoardwaselectedattheAGMinOctober2012.Itisrepresentativeoftheindustryandhasanappropriateblendofskillsandexperiences.AllBoardmembersoccupyhonorarypositions.TheBoardmembersinclude:

Bill Turner SaramaResources&ChairmanofAAMIG

GillianSwaby PaladinEnergyLtd

Bill Repard PaydirtMediaPtyLtd

PeterSullivan ResoluteMiningLimited

MarkConnelly PapillonResourcesLimited

TimCarstens BaseResourcesLimited

Philippa Leggat LegateConsulting

AdelvanderWalt ClaytonUtz

RobSlater Sherwen-Slater&Partners

RickYeates MiddleIslandResourcesLimited

TheAAMIGExecutivecontinuestostriveforexcellenceinservicedeliverytomembersandispassionateaboutmakingarealcontributiontotheindustry.TheAAMIGExecutiveteaminclude:

TrishO’Reilly ChiefExecutiveOfficer(3.5daysperweek)

JeffHart GovernmentRelations (1dayperweek)

JimNylander ServiceIndustrySupport(2daysperweek)

GemmaMaisey ProjectDevelopment(5hoursperweek,fromJanuary2013toJuly2013)

RebeccaHamersley ExecutiveAssistant(fulltimesinceJanuary2013)

AAMIGappreciates theongoingsupportbyPaydirt staff,particularlyGiovanny Jefferson (CompanySecretary-AAMIG),KristyTyrie(GeneralAdministration)andSuwilanjiMutambo(Accounts)whohavebeeninvaluableduringtheyear.

AAMIGbooth-AfricaDownUnder2012.

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REVIEW OF OPERATIONS

2012-13wasAAMIG’sfirstfullfinancialyear.Asaresult,costsincurredinthatfinancialyearwerehigherthanthepreviousfinancialyear.

AAMIG’stotaloperationalincomeforthefinancialyearwasjustover$300,000,asopposedto$222,000thatwasgeneratedintheprecedingfinancialyear.Thiswasanincreaseof35%onayear-on-yearbasis.

Totalcosts increasedby$112,000from$176,000 in2011-12financial to$289,000 lastfinancialyear, leavingAAMIGwithanoperatingsurplusof$11,000comparedtothe$46,000theCompanyachievedinthepreviousfinancialyear.

Theincreaseincostswasmainlyduetotheincreasedcostsofconsultants,resultingfromthefactthat2012-13wasAAMIG’sfirstfullfinancialyearofoperationwhereconsultantsworkedmoreregularhours.Likewise,function,promotionandmarketingcostshavealsoincreasedduetomanagement’scontinuedeffortstopromotetheCompany.

Totalcarriedforwardoperatingsurplusoverthepasttwofinancialyearsasat30June2013amountedto$57,000,towhichweadd the$185,000voluntary contributionsAAMIG receivedasa resultour fundraisingexercisesearlierintheyear,leavinguswithatotalcarriedforwardsurplusof$242,000.

Cashavailableattheendofthelastfinancialyearwasjustunder$185,000whichcanbeassociatedsolelytotheamountreceivedasvoluntarycontributionsduringthefinancialyear.Consequently,AAMIG’soperatingcarriedforwardsurplus(i.e.,netassets)canbeassumedtohavebeencontainedinthetotalamountduetobereceivedfromvariousmembers,amountingtolittleover$68,000,lessapproximately$10,000duetobepaidbyAAMIGtovarioussuppliersandthetaxofficeasatthelastdayofthefinancialyear.

Board Member Meeting5/11/12 Meeting11/12/12 Meeting27/3/13 Meeting14/6/13

Eligible Attended Eligible Attended Eligible Attended Eligible Attended

Bill Turner ü ü ü ü ü ü ü ü

Bill Repard ü ü ü û ü ü ü û

RickYeates ü ü ü û ü ü ü û

TimothyCarstens ü û ü û ü ü ü ü

MarkConnelly ü ü ü ü ü ü ü ü

Philippa Leggat ü ü ü ü ü ü ü ü

RobertSherwen-Slater ü û ü ü ü û ü û

PeterRossSullivan ü ü ü ü ü ü ü ü

GillianSwaby ü ü ü ü ü ü ü ü

AdelvanderWalt ü ü ü ü ü ü ü ü

BOARD MEETING ATTENDANCE

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Directors’ Report


Mr.TurneristheformerPresidentandCEOofAnvilMiningLimitedandretiredinmid-2011after16yearswiththecompany.HetookAnvilintoAfricain1995andsince 2002, has been involvedwith thebuilding of twoopenpit copperminesandacoppertailingsretreatmentprojectintheDemocraticRepublicofCongo.Healsooversawthedevelopmentofaculturewithastrongfocusoncorporatesocialresponsibility(CSR)issues.

BillhassubstantialexperienceinpoliticalandoperationalriskmanagementandagoodappreciationfortheconnectionsbetweenenlightenedapproachestoCSR,riskmitigationanddevelopingcompetitiveadvantage.Hehasworkedformorethan30yearsindevelopingandemergingcountriesinSEAsia,theMiddleEast,theformerSovietUnionandlatterlyAfrica.

Bill isanon-executivedirectorofSaramaResourcesLimitedandthecurrentchairmanoftheAustralia-AfricaMiningIndustryGroup(AAMIG).

Bill is theexecutivechairmanofPaydirtMediaPtyLtd,publisherof the leadingresources news magazines, “Paydirt” and “Gold Mining Journal” and hisorganisationmanagesofmorethan10annualAustralianresourcesevents.PaydirtMediaalsolaunched“AfricaDownUnder”whichhasbeenheldinPerthforthelast9yearsandisthelargestandbestattendedAfricanfocussedresourcesconferenceheldoutsideofAfrica.BillisalsocurrentlytheNationalChairman/WAPresidentfortheAustraliaAfricaBusinessCouncilandtheSecretaryoftheConsularCorpsofWesternAustraliaInc.

PriortoPaydirt,Billworkedfor25yearsinanumberofseniorroleswithNewsLtd,hislastpositionasCEOofNews’SundayTimesinPerth.OtherseniormanagementrolesincludedassignmentsworkinginNewspublicationsinLondon,Brisbane,theGoldCoast,SydneyandAdelaide.BillisalsotheHonoraryConsulforSouthAfricainWesternAustralia.

BOARD OF DIRECTORS

AAMIGhasatotaloftennon-executivedirectors.Threedirectors(BillTurner,BillRepard&RickYeates)haveauthoritytooperatethecompany’sbankaccounts,inadditiontotheCEO&CompanySecretary.NoneoftheExecutiveDirectorsreceivesanyfinancialcompensationfortheirrole.BillTurner,asChairman,isreimbursedforincidentalexpenses.

William (Bill) Stuart Turner B.Sc., M.Sc., MBA Chairman & Non-Executive Director

Andrew Crispin William (Bill) Repard B.A. Non-Executive Director

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Rick is a geologist whose professional career has spanned 30 years, variouslyworking for major companies such as BHP, Newmont and Amax, prior to co-foundingtheconsultingfirmofResourceServiceGroup(subsequentlyRSGGlobal)in1987,growingthecompanyovera20yearperiodintoarespectedinternationalconsulting group, before selling the business to Coffey in 2006. Rick continuedtoworkinmergersandacquisitionsandbusinessdevelopmentfunctionswithinCoffeyMininguntilhisresignationtoestablishMiddleIslandResourcesin2010.

Rickhasworkedinover30countries,particularlywithinAfricaandSouthAmerica,variously undertaking project management assignments, feasibility studies and independent reviews forcompany listings,projectfinanceauditsandtechnicalvaluations. Rick iscurrentlyManagingDirectorofASXlistedWestAfricangoldexplorer,MiddleIslandResourcesLimited,andanon-executivedirectorofASXlistednickelproducer,WesternAreasNL.

TimhasbeenManagingDirectorofBaseResourcesLtdsinceitsinceptionin2008.Inthepastthreeyears,thecompanyhastransitionedfromajuniorAustralian-focusedexplorer,toanASX300resourcesdeveloperwithaflagshipmineralsandsprojectinconstructioninKenya,EastAfrica.

IntheprocessofadvancingtheKwaleMineralSandsprojectfromconceptthroughdevelopmentand intoconstruction,TimhasgainedvaluableexperienceofthechallengesandopportunitiesintheAfricanresourcessector.

Timhasbeeninstrumentalinlayingthefoundationsforthecompany’sprogressivegovernance,sustainabilityandsocialresponsibilityprograms,whichhavesecuredbroadlocalcommunityandKenyangovernmentsupportfortheKwaleprojectandthecompany.

Acharteredaccountantbyprofession,Tim’sresourcescareerspansmorethan16years,includingseniorexecutiveroleswithPerilyaLimited,NorthLimited,RobeRiverIronAssociates,IronOreCompanyofCanadaandStBarbaraMinesLimitedinoperations,strategy,corporatedevelopmentandfinance,bothinAustraliaandoverseas.

Richard Yeates B.Sc. Non-Executive Director

Timothy Carstens B.Com., ACA Non-Executive Director

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MarkistheManagingDirectorandChiefExecutiveOfficerofPapillonResourcesLtdandhasextensiveexperiencewiththedevelopmentandoperationofminingprojects for a variety of commodities including gold, base metals and otherresourcesinAustralia,NorthAmerica,EuropeandAfrica.

He has held various senior management positions for a number of resourcecompanies, including 5 years with Endeavour Mining (formerly AdamusResources),Perth,WesternAustralia,5yearswithNewmontMiningCorporation,Denver,USAand12yearswithInmetMiningCorporation,Toronto,Canada.

First travelling toWest Africa in 2002with NewmontMining,Mark was involved in the development andnegotiationoftheinvestmentagreementsforNewmontfortheAhafoandAkyemprojects. JoiningAdamusin 2007 he has been a frequent visitor toWest Africa and has spent significant time in-country.Markwasinstrumentalinthepermitting,constructionandcommissioningofEndeavour’sNzemaGoldMineinGhana.

MarkisalsoaNon-ExecutiveDirectorofAusdrillLimited.

Philippahasover 10 years experience in corporate strategy, riskmanagementandbusinessimprovementwithintheresource,constructionandfinancesectors.

Sheadvisesorganisationsonstrategy;acquisitionanddisposalofassets;investorrelations;raisingcapital; internationalbestpracticeandcorporategovernance.PreviousclientsincludeXstrata,Evraz,AngloGoldAshantiandseveralinternationalbanks.

PhilippaisaNon-ExecutiveDirectorofASXlistedexplorerParkerResourcesNL,aCommitteeMemberoftheWestAustralianMiningClubandManagingDirectorofanadvisorypractice,LegateConsulting.PhilippahasbeenadmittedtoBachelorDegreesinFinancialManagement,majoringinfinance,riskandstrategicmanagementandArtsmajoringinJewelleryandGemmology.SheisalsoaGraduateMemberoftheAustralianInstituteofCompanyDirectors.

PhilippabegantoassistAAMIGinmid-2012andwasappointedtotheboardinOctober2012.Philippa’swishestocontinuecontributeherknowledgeandexperienceofAfricatowardsassistingAustralianbusinessesestablishandmaintainsustainable,ethicalandcommerciallyviablebusinesses.

Mark Connelly B.Bus. Non-Executive Director

Philippa Leggat B.Com., B.A., GAICD, PCMCA Non-Executive Director

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Rob started his own mining and exploration consulting firm in June 2013,Sherwen-Slater&Partnerswhichaimstobringfullvaluetotheirclient’sprojectsthroughoutAfrica.RobhasheldseveralBoardandDirectorRoleswithsmallandlargemining,engineeringandconstructioncompanies.HehasanunderstandingofcomplexandremoteminingworkwithextensivetechnicalandmanagementexperienceinAfrica,AustraliaandSouthAmerica.

Rob previouslyworked for CoffeyMining for 4 years and before thatwas theOperationsDirectorforNorilskNickelAustraliawhichemployedover2,000individuals.

PeterisChiefExecutiveOfficeroftheAustralian/AfricangoldproducerResoluteMiningLimited.Hehasbeeninvolvedwiththeorganisationsincehisappointmentasanon-executiveDirectorinDecember1999andasCEOfromFebruary2001.DuringhistenureasCEOofResolute,Peteroversawacorporaterestructureandresurgenceinitsgoldminingactivities.

PriortojoiningResolute,Peterspecialisedinprovidingstrategiccorporate,financialandinvestmentadvicetocompaniesinarangeofindustriesbutpredominantlytheresourcesector.HehasalsoservedasaDirectorforanumberofotherASXlistedcompaniesandbeencloselyinvolvedwiththeirdevelopment.

Robert Sherwen-Slater Dip. Manag. Devt. Non-Executive Director

Peter Ross Sullivan B.E., MBA Non-Executive Director

Gillian has been involved in financial and corporate administration for listedcompanies,asbothDirectorandCompanySecretarycoveringabroadrangeofindustrysectors,forover25years.

Gillianhasextensiveexperienceintheareaofsecretarialpractice,managementaccounting and corporate and financialmanagement; she is past Chair of theWestern Australian Council of Chartered Secretaries of Australia, a formerDirector on their National Board and a lecturer for the Securities Instituteof Australia. Gillian is the principal of a corporate consulting company called Strategic Consultants andwas amember of the Paladin Board for a period of 10 years. She is currentlyGroup Company Secretary& EGMCorporateServicesatPaladinEnergyLtdandisthedirectoroflistedcompaniesDeepYellowLtdandCometRidge Ltd.

Gillian Swaby B.Bus., FCIS, FAICD Non-Executive Director

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AscompanysecretaryofPaydirtMediaPtyLtd(amembercompany),Giovannyhas experience in both commercial and not-for-profit sectors. He has beenAAMIG’scompanysecretarysinceitsincorporationinApril2011.

Adel van der Walt LL.M., LL.B. Non-Executive Director

Giovanny Jefferson B.Com., M.Com., CPA CIA ACIS Company Secretary

AdelisanEnergyandResourcesPartnerinthePerthofficeoflawfirmClaytonUtz.Adelspecialisesinawiderangeofmattersinconnectionwithenergyandresources,electricity,corporateandbroadercommercialtransactions,mergersandacquisitionsanddistressedbusinesstransactions.

Adelhasextensiveexperienceinenergyandresourcesandcorporatemattersboth in Australia andAfrica and regularly advises Australian companieswithassetsorinterestsinAfrica.

BeforejoiningClaytonUtzin2008,AdelpractisedatoneoftheleadingSouthAfricanlawfirms,WebberWentzel,wheresheregularlyadvisedclientsinconnectionwithenergyandresourcestransactionsandlegalcomplianceissues, includingsocialresponsibilityandcommunity issuesaswellastheSouthAfricanGovernment’sbroadbasedblackeconomicempowermentrequirements.WhilstworkinginSouthAfrica,Adelalsoassistedwiththereviewofthemininglegislation/codesofanumberofAfricancountries.

JointlywithpartnerGaryBerson,AdelheadsupClaytonUtz’AfricaPracticeGroup.

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CHANGES IN STATE OF AFFAIRS

DuringthefinancialyeartherewasnosignificantchangeinthestateofaffairsoftheCompanyotherthanthatreferredtointhefinancialstatementsornotesthereto.

FUTURE DEVELOPMENTS

Disclosureof information regarding likely developments in theoperationsof theComany in futurefinancialyearsandtheexpectedresultsofthoseoperationsarelikelytoresultinunreasonableprejudicetothegroup.Accordingly,thisinformationhasnotbeendisclosedinthisreport.

SUBSEQUENT EVENTS

Therehasnotbeenanymatteror circumstance thathasarisen since theendof thefinancial year thathassignificantlyaffected,ormaysignificantlyaffect,theoperationsoftheAAMIG,theresultsofitsoperations,orthestateofaffairsoftheentityinfuturefinancialyearsthathasnotbeenreflectedinthefinancialstatements.


AUDITOR’S INDEPENDENCE DECLARATION

TheAuditor’sIndependenceDeclarationisincludedonpage30.

INSURANCE

AAMIGprovidesinsurancecoversforitsstaffandconsultantswhileundertakingworkonbehalfoftheCompany.AlldirectorsandofficersoftheCompanyarealsocoveredwhilecarryingouttheirdutiesandresponsibilitiesasdirectedbytheConstitutionandrelevantregulations.Public liability insurance is inplacewhichcoversallattendeesatanyAAMIG-organisedevent.

AAMIG insurance ismanagedby LocktonCompaniesAustraliaPty Ltd,who is alsoamember company,andinclude:

-CorporateTravel;

-WorkersCompensation–WAandACT;

-PublicLiability;and

-ManagementLiability.

FINANCIAL REPORT

ThedirectorshavedeterminedthatthegroupisnotareportingentityandthatthisspecialpurposefinancialreportshouldbepreparedinaccordancewiththeaccountingpoliciesdescribedinNote1tothefinancialstatements. Thedirectorsofthecompanydeclarethat: 1. Thefinancialstatementsandnotes,assetoutonpages31to37areinaccordancewiththe

CorporationsAct2001;and

(a)complywithAccountingStandards;and

(b)giveatrueandfairviewofthecompany’sfinancialpositionasat30June2013andofitsperformancefortheyearendedonthatdateinaccordancewiththeaccountingpoliciesdescribedinNote1tothefinancialstatements.

2. Inthedirectors’opiniontherearereasonablegroundstobelievethatthecompanywillbeabletopayitsdebtsasandwhentheybecomedueandpayable.

ThisdeclarationismadeinaccordancewitharesolutionoftheBoardofDirectors.

Mr William (Bill) Turner Chairman Perth,WesternAustralia 30 October 2013

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Financial Statements

NOTE 2013 2011$ $

INCOMERevenue 2 297,822 219,909BankInterest&OtherIncome 2,759 2,930TOTALINCOME 300,581 222,839

EXPENSESAdministrationExpenses 3 281,062 174,633FinanceCosts 4 4,037 815OtherExpenses 5 4,382 1,277TOTALEXPENSES 289,481 176,725

OPERATINGSURPLUS 11,100 46,114

OTHERCOMPREHENSIVEINCOME

VoluntaryContributions 6 185,000 -TOTALOTHERCOMPREHENSIVEINCOME 185,000 -

GROSSSURPLUS 196,100 46,114

INCOMETAX (4,700) -

NETSURPLUS 191,400 46,114

TheaboveStatementofComprehensiveIncomeshouldbereadinconjunctionwiththeaccompanyingnotes

STATEMENT OF COMPREHENSIVE INCOME For the Year Ended 30 June 2013

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2013 2012$ $

ASSETSCashAvailable 184,214 48,940NetGSTReceivable - 4,860TradeDebtors 68,350 -TOTALASSETS 252,564 53,800

LIABILITIESNetTradeCreditors - 715NetGSTPayable 979 563ProvisionforIncomeTax 4,700 -OwedtoPaydirt 8,051 -AccruedExpenses 1,320 6,408TOTALLIABILITIES 15,050 7,686

NET ASSETS 237,514 46,114

EQUITYSurplusBroughtForward 46,114 -Current Financial Year’s Surplus 186,100 -

237,514 46,114

STATEMENT OF FINANCIAL POSITION For the Year Ended 30 June 2013

TheaboveStatementofFinancialPositionshouldbereadinconjunctionwiththeaccompanyingnotes

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2013 2012$ $

RECEIPTSMembershipFees&OtherIncome 402,279 236,788BankInterestandCreditCardSurcharge 2,147 2,930TOTALRECEIPTS 404,426 239,718

PAYMENTSPaymentstoSuppliers 256,614 182,171NetGSTPaymentstoATO 12,538 8,607TOTALPAYMENTS 269,152 190,778

NETCASHMOVEMENT 135,274 -

OPENINGCASHBALANCE 48,940 -

CASHAVAILABLE 184,214 48,940

TheaboveStatementofCashFlowshouldbereadinconjunctionwiththeaccompanyingnotes

STATEMENT OF CASH FLOW For the Year Ended 30 June 2013

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1.ACCOUNTINGPOLICIES

This financial report is a special purpose financial report prepared in order to satisfy the financial reportpreparationrequirementsoftheCorporationsAct2001.Thedirectorshavedeterminedthatthecompanyisnotareportingentity.

ThisspecialpurposefinancialreporthasbeenpreparedfordistributiontothememberstofulfiltheDirectors’financialreportingrequirements.Theaccountingpoliciesusedinthepreparationofthisreport,asdescribedbelow,are consistentwith thefinancial reporting requirementsof the company constitutionandare, in theopinionofthedirectors,appropriatetomeettheneedsofmembers:

• Thefinancialreporthasbeenpreparedonanaccrualbasisofaccounting,includingthehistoricalcostconventionandthegoingconcernassumption.

• TherequirementsofAccountingStandardsandotherprofessionalreportingrequirementsdonothavemandatoryapplicabilitytoAustralia-AfricaMiningIndustryGroupbecauseitisnota“reportingentity”.TheDirectorshave,however,preparedthefinancialreportinaccordancewithallthemeasurementbutnotdisclosurerequirementsofAccountingStandardsandotherprofessionalreportingrequirements.

• Cost is basedon the fair valuesof the consideration given in exchange for assets.Unlessotherwiseindicated,allamountsarepresentedinAustraliandollars.

• Accountingpolicies are selected and applied in amannerwhich ensures that the resulting financialinformationsatisfiestheconceptsofrelevanceandreliability,therebyensuringthatthesubstanceoftheunderlyingtransactionsorothereventsisreported.

The following significant accounting policies have been adopted in the preparation and presentation of thefinancialreport:

CashandCashEquivalents

Cashandcashequivalentscomprisecashonhand,cashinbanksandinvestmentsinmoneymarketinstruments,netofoutstandingbankoverdrafts(ifapplicable).

Payables

Tradepayablesandotheraccountspayablearerecognisedwhentheentitybecomesobligedtomakefuturepaymentsresultingfromthepurchaseofgoodsandservices.

Receivables

Tradereceivablesandotherreceivablesarerecordedatamortisedcostlessimpairment.

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS For the Year Ended 30 June 2013

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1.ACCOUNTINGPOLICIES(CONTINUED)

RevenueRecognition

Revenuefromthesaleofgoodsanddisposalofotherassetsisrecognisedwhentheentityhaspassedrisksandbenefitsofownershipofthegoodsorotherassetstothebuyer.

Incomefrommembershipfeesarerecordedintheyeartowhichthosefeesrelate.

Tax Status

ItisunlikelyAAMIGwillbeeligibleforanincometaxexemptionordeductiblegiftrecipient(DGR)status.

TheaimsandobjectivesofAAMIGdonot includeprovidinganydirectwelfareordevelopmentassistance inAfrica;thechancesofAAMIGqualifyingforregistrationasanapprovedorganisationundertheOverseasAidGiftDeductionSchemearelimited.AsthereisnootherappropriateDGRcategoriesunderwhichAAMIGcouldapplyforDGRstatus,itisunlikelyAAMIGcouldbeendorsedasaDGR.

Inaddition,giventheobjectivesofAAMIGarenotcharitable,itisunlikelyAAMIGwouldbeabletobeexemptfromincometax.However,theprinciplesofmutualityareapplied.Thismeansthatreceiptsderivedfrommutualdealingswithmembersarenotassessableincomeandexpensesincurredtoobtainthemutualreceiptsarenotdeductible.Theprincipleofmutualityonlyapplieswherethereceiptsfromthemembersresultfromamutualactivityratherthanatradingactivity.Thisrequiresaconsiderationofthenatureofthetransaction,ratherthantheidentityoftheentityprovidingthereceipt.

Finally,asAAMIGoperatesonanon-profitbasisandisrunonlyforthebenefitofitsmembers,itisspecificallyexcluded from the definition of ‘lobbyist’; for the purposes of the Lobbying Code of Conduct, which wasestablishedby theAustralianGovernment in2008. It is thereforenot required to registeron theRegisterofLobbyists.

NootherapplicableAccountingStandardsorotherauthoritativepronouncementsoftheAustralianAccountingStandardsBoardhavebeenapplied.


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2.REVENUE 2013 2012$ $

Level1Memberships 77,786 62,500Level2Memberships 35,000 40,000Level3Memberships 30,000 30,000ServiceCompanyMemberships - 84,000LargeServiceCompanyMemberships 96,300 -SmallServiceCompanyMemberships 32,727 -IndividualMemberships 5,046 909Pro-RataMemberships - 2,500FunctionRevenue 20,963 -

297,822 219,909

BankInterest&OtherIncome 2,759 2,930

3.ADMINISTRATIONEXPENSES 2013 2012$ $

Consultants-Main 191,268 92,486Consultants-Administration 17,273 -Consultants-Other 9,809 22,523FunctionExpenses 7,450 2,275Insurance 4,102 3,333ITExpenses 9,846 20,933LegalFees 1,383 1,729PostageCosts 2,061 235PrintingandStationery 7,426 7,885PromotionandMarketing 13,529 9,773Travel-Local 10,946 8,265Travel-Overseas 3,402 4,923TelephoneExpenses 2,567 273

281,062 174,633


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4.FINANCECOSTS 2013 2012$ $

BankFeesandCreditCardSurcharge 3,255 647PettyCashExpenses 782 168

4,037 815

5.OTHEREXPENSES 2013 2012$ $

MiscellaneousExpenses 4,382 1,2774,382 1,277

6.VOLUNTARYCONTRIBUTIONS 2013 2012$ $

Member’sVoluntaryContributions 175,000 -Non-Member’sVoluntaryContributions 10,000 -

185,000

7.SUBSEQUENTEVENTSTherehasnotbeenanymatterorcircumstancethathasarisensincetheendofthefinancialyearthathassignificantlyaffected,ormaysignificantlyaffect,theoperationsoftheentity,theresultsofthoseoperations,orthestateofaffairsoftheentityinfuturefinancialyearsthathasnotbeenreflectedinthefinancialstatements.

8.CONTINGENTLIABILITIES&COMMITMENTSTherearenocontingentliabilitiesorcommitments.


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DIRECTORS’ DECLARATION

IntheopinionofthedirectorsoftheAustralia-AfricaMiningIndustryGroup,theaccompanyingStatementofFinancialPosition,StatementofCashFlowandtheStatementofComprehensiveIncomearedrawnupsoastogiveatrueandfairviewofthestateofaffairsofthecompanyasat30June2013andtheresultfortheyearendedonthatdate.AtthedateofthisdeclarationtherearereasonablegroundstobelievethattheGroupwillbeabletopayitsdebts,asandwhentheyfalldue.

Consequentlythedirectorsdeclarethat:

a. Inthedirectors’opinion,therearereasonablegroundstobelievethatthecompanywillbeabletopayitsdebts,asandwhentheybecomedueandpayable;and

b. Inthedirector’sopinion,theattachedfinancialstatementsandnotestheretoareinaccordancewiththeCorporationsAct2001,includingcompliancewithaccountingstandardsandgivingatrueandfairviewofthefinancialpositionandperformanceoftheentity.

SignedinaccordancewitharesolutionoftheDirectorsmadepursuanttoS295(5)oftheCorporationsAct2001.

Mr William (Bill) Turner Chairman Perth,WesternAustralia 30 October 2013

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Auditor’s Report

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Sponsorsand supportersarevital toAAMIG inorder to carryoutourpurposeandmake itpossible toholdoureducationaland trainingevents,advocate for industry, fund informationsharingand runourday-to-dayoperations.

AAMIGhasestablished the following categories fordirectfinancial andprobono support andwould like torecognisethosewhohavecontributed:

In Kind Support

BDO

CanningsPurple

ClaytonUtz

CoffeyInternationalLimited

Deloitte

DynamicAlternativesPtyLtd

PaladinEnergyLimited

PaydirtMedia

PaxPopulus

StellarRecruitment

SustainableConsulting

Platinum

$50,000andabove

• BaseResourcesLimited

• Bill Turner

• PaydirtMedia

Gold

$25,000andabove

• PerseusMiningLimited

• ResoluteMiningLimited

Silver

$10,000andabove

• MawsonWestLimited

• TigerResourcesLimited

Bronze

$5,000andabove

• ChaliceGoldMinesLimited

Sponsorship & Support

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2013 ANNUAL REPORT - AAMEG€¦ · Lockton Companies Level 1, 50 Subiaco Square Road, SUBIACO WA...

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Transcript of 2013 ANNUAL REPORT - AAMEG€¦ · Lockton Companies Level 1, 50 Subiaco Square Road, SUBIACO WA...