Pacific American Coal : 31.03.2017 2016 Annual Report

2016 Annual Report Pacific American Coal Limited

ABN 83 127 131 604

and its Controlled Entities

CONTENTS

DIRECTORY 3

DIRECTORS' REPORT 4

AUDITOR'S INDEPENDENCE DECLARATION 14

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME 15

CONSOLIDATED STATEMENT OF FINANCIAL POSITION 16

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 17

CONSOLIDATED STATEMENT OF CASH FLOWS 18

NOTES TO THE FINANCIAL STATEMENTS 19

DIRECTORS' DECLARATION 38

INDEPENDENT AUDITOR'S REPORT 39

ADDITIONAL SECURITY HOLDER INFORMATION 45

DIRECTORY

1. Registered Office

   Suite 1002, Level 10

   171 Clarence Street

   Sydney NSW 2000

   Telephone: [phone] Website: www.pacoal.com.au

2. Directors

   Geoff Hill (Chairman)

   Matthew Hill (Alternate Director for Geoff Hill) Simon Bird (Non-Executive Director)

   Paul Chappell (Non-Executive Director) Mark Lochtenberg (Managing Director)

3. Chief Executive Officer

   Mark Sykes

4. Company Secretary

   Ian Morgan

5. Solicitor

   HWL Ebsworth Lawyers Level 14

   Australia Square Tower 264-278 George Street

   Sydney NSW 2000

   Telephone: [phone]

   Facsimile: [phone]

6. Share Registry

   Boardroom Pty Limited Level 12, 225 George Street

   Sydney NSW 2000

   Telephone: [phone]

   Facsimile: [phone]

   Website: www.boardroomlimited.com.au

7. Bankers

   Bank of Queensland

   Westpac Banking Corporation

8. Auditor

   Hall Chadwick

   Level 40, 2 Park Street

   Sydney NSW 2000

9. Investor enquiries

Suite 1002, Level 10

171 Clarence Street

Sydney NSW 2000

Telephone: [phone]

Directors' Report

DIRECTORS' REPORT

Your directors present their report, together with the financial statements, on the consolidated entity (Consolidated Entity) consisting of Pacific American Coal Limited (Company or PAK) and the entities it controlled at the end of, or during, the year ended 31 December 2016.

1. DIRECTORS

The Directors of the Company during the year and until the date of this report are:

NAME AND POSITION	QUALIFICATIONS, EXPERIENCE, SPECIAL RESPONSIBILITIES AND OTHER DIRECTORSHIPS
Geoffrey Hill Non-Executive Chairman	Geoff Hill BEcon (Syd), MBA (NSW), FFIN, FCPA, FAICD is a merchant banker and Director with over 30 years of international experience. He is the Founder of Bancorp Holdings Limited, a former MD of Morgan Grenfell Australia and a former Director of Morgan Grenfell PLC. Mr. Hill was also the founding Partner and Managing Director of Pitt Capital Partners in Australia and a former Chairman of Pitt Capital Partners Asia Limited (HK). He is the Executive Chairman of International Pacific Securities Limited Group and Chairman of Hong Kong Administrative Services Limited, a Partner of Hill Sherlock and Willis [Sydney] and was Chairman of Australasian Investment Holdings Limited [Singapore]. A Director and Founder of Asian Property Services Limited and Asian Property Investments Limited, he is also the Non- Executive Chairman of Parry International Trading. Mr Hill is the Hong Kong Representative of Lagerkvist & Partners, Sweden. An experienced Company Director for over 30 years, current public company boards include Chairman Texas & Oklahoma Coal Company Inc. Geoff currently sits on the board of Broken Hill Prospecting Limited is a former director of: Broken Hill Prospecting Limited (February 1989 to June 2014) Heritage Gold NZ Limited (July 1999 to April 2012) Mount Gibson Iron Limited (May 2011 to April 2014) A current member of RHKYC and WPO Hong Kong Chapter in Hong Kong, Mr Hill is a member of the Australian Union, Royal Sydney Yacht Squadron and CYCA in Sydney.
Simon Bird	Simon Bird B.Compt (University of South Africa), B.Compt (Hons) (University of South Africa),
Independent	FCPA, FAICD is a Non-Executive Director and Chairman of the Audit Committee (since 13 July
Non-Executive	2010).
Director
	Simon's 30 year professional career in Australia, Africa and Europe includes six years with
	PricewaterhouseCoopers and senior roles in the resources, financial services, property,
	infrastructure and agricultural sectors. His time in Australia includes terms as Chief Financial
	Officer with Stockland Limited, GrainCorp Limited and the Wizard Mortgage Corporation as well as
	Chief Executive Officer of ASX listed mining company King Island Scheelite Limited and Chairman
	of ASX listed oil and gas company Rawson Resources Limited (ceased 30 September 2015).
	He is currently Non-Executive Director and Chairman of the Audit Committee of ASX listed Mount
	Gibson Iron Limited [ASX: MGX] (appointed 23 February 2012).
	His former public company directorships include King Island Scheelite Limited [ASX:KIS], CPA
	Australia Limited, Kosciusko Alpine Club Limited and Sovereign Gold Company Limited
	[ASX:SOC].
Paul Chappell	Paul Chappell B Com (Newcastle), FCPA, MAICD is a non-executive director.
Independent
Non-Executive	Paul has over 20 years' experience as a commodity trader in international markets. He has an in-
Director	depth knowledge of the coat sector, with a focus on the downstream application of metallurgical
	and thermal coat and the value-in-use of coal products to end-user customers.
	Paul has held executive and Board level positions with operating coal companies and commodity
	trading groups. He has served on the Board of ASX listed Cockatoo Coal Ltd (ASX:COK) and the
	international coal trading company SSM Coal B.V, which was acquired by Oxbow Carbon &
	Minerals LLC in 2007.
	Paul is the Principal of Peragis Pty Ltd, providing consulting services to the resource industry on
	sourcing, exporting and marketing commodities. Mr Chappell focuses particularly on soldi fuels
	sector and has extensive international experience.