Page 26 - Bauxite Resources Annual Report 2014

24 | Bauxite Resources Annual Report 2014
DIRECTORS’ REPORT
Directors’ Report cont.
Annual Report 2014 Bauxite Resources 24
Interests in the shares and options of the Company and related bodies corporate
As at the date of this report, the interests of the directors and their related bodies corporate in the shares, options and
performance rights of Bauxite Resources Limited were:
Ordinary Shares Options over
Ordinary Shares
Performance
Rights over
Ordinary Shares
Robert Nash 254,900 - -
Peter Canterbury 100,000 - 6,000,000
Luke Atkins 17,041,667 - -
Neil Lithgow 19,366,666 - -
John Sibly 40,500 2,000,000 -
Cunliang Lai* 19,700,000 - -
Zhaozhong Wang* 19,700,000 - -
*Mr Lai and Mr Wang are the corporate representatives of Yankuang Resources Pty Ltd and HD Mining and Investment Pty Ltd,
who are the holders of shares in the Company.
OPERATING AND FINANCIAL REVIEW
OPERATING REVIEW
The Company is solely focused on the exploration and evaluation of bauxite prospectivity in the Company’s large tenement
holding in WA’s Darling Range, the largest bauxite and alumina producing region in the world. As at 30 June 2014 the Group
exploration tenements covered 8,301 km2 (5,322 km2 granted). The significant reduction in tenement holdings (8,301km2 in
2014 versus 17,710km2 in 2013) is consistent with the Company’s strategy of tenement rationalisation and this has achieved a
significant drop in the minimum expenditure requirements of the Company whilst expanding the resource base through low cost
targeted exploration.
The Company undertakes this exploration and evaluation both in its own right and through participation in three joint ventures.
Two of these joint ventures are carrying out exploration for bauxite, while the third joint venture was formed to examine the
feasibility of building and operating an alumina refinery in Western Australia through which to process bauxite sourced from the
Darling Range region. Note 17 of this financial report provides more detail of these joint venture arrangements.
The Company’s exploration efforts during the 12 months to 30 June 2014 yielded a 56% increase in JORC compliant bauxite
resources. Total quoted resource at 30 June 2014 stood at 380.2 million tonnes. Of this total resource, 40.2 million tonnes are
held by the Company in its own right, 265.7 million tonnes are held in the Bauxite Resources Joint Venture (“BRJV”), and 74.3
million tonnes are held in the BRL-HD Mining joint venture (“HDMI”).
By comparison, total quoted JORC resource at 30 June 2013 stood at 243.7 million tonnes of which 188.2 million tonnes were
held in the BRJV, and 28.7 million tonnes were held in the HDMI joint venture.
There was no significant change in the nature of the Group’s activities during the year.
FINANCIAL REVIEW
The Group has recorded an operating loss after income tax for the year ended 30 June 2014 of $4,554,592 (2013: $5,241,176
loss).
Included in the operating loss was expenditure on exploration totalling $3,515,847 compared to $4,277,870 in the year ended
30 June 2013. The group does not capitalise exploration expenditure, but writes off the full amount of expenditure incurred each
year.
Employment Benefits expense declined from $1,357,341 in 2013 to $1,261,252 in the 2014 year. This is a reflection of reduced
staff numbers, as the Company moved to ensure costs were properly contained in line with activity levels during the year.