MATSA RESOURCES LIMITED
ABN 48 106 732 487
ANNUAL REPORT
For the Year Ended
30 June 2021
MATSA RESOURCES LIMITED | |
CORPORATE DIRECTORY | |
Directors | |
Paul Poli | Executive Chairman |
Franciscus (Frank) Sibbel | Director |
Andrew Chapman | Director |
Pascal Blampain | Director (appointed 17 February 2021) |
Company Secretary | |
Andrew Chapman |
Registered Office
Suite 11,
139 Newcastle Street PERTH WA 6000 Tel: (08) 9230 3555 Fax: (08) 9227 0370
Email: reception@matsa.com.au
Postal Address
PO BOX 376
Northbridge W.A. 6865
Website
www.matsa.com.au
Share Registry
Advanced Share Registry Services
110 Stirling Highway
Nedlands WA 6009
Tel: (08) 9389 8033
Fax: (08) 9262 3723
Home Stock Exchange
Australian Securities Exchange Ltd
Level 40, Central Park
152-158 St George's Terrace
Perth WA 6000
ASX Code: MAT
Auditors
Nexia Perth Audit Services Pty Ltd
Level 3
88 William Street
PERTH WA 6000
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MATSA RESOURCES LIMITED | |
CONTENTS | |
Page | |
CORPORATE DIRECTORY | 1 |
CHAIRMAN'S REPORT | 3 |
OPERATIONS REVIEW | 4 |
DIRECTORS' REPORT | 44 |
AUDITOR'S INDEPENDENCE DECLARATION | 59 |
FINANCIAL STATEMENTS | |
- Consolidated Statement of Profit or Loss and Other Comprehensive Income | 60 |
- Consolidated Statement of Financial Position | 61 |
- Consolidated Statement of Changes in Equity | 62 |
- Consolidated Statement of Cash Flows | 63 |
- Notes to and Forming Part of the Consolidated Financial Statements | 64 |
DIRECTORS' DECLARATION | 108 |
INDEPENDENT AUDIT REPORT | 109 |
ADDITIONAL ASX INFORMATION | 112 |
SCHEDULE OF MINING TENEMENTS | 118 |
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MATSA RESOURCES LIMITED
CHAIRMAN'S REPORT
Dear Shareholder,
The year saw us focused on developing a strategy that would serve the Company's future and create value for all shareholders. We substantially increased our gold resource, and produced several feasibility studies which demonstrates that the Company can develop excellent returns for shareholders by producing gold at the Lake Carey Gold Project through a Matsa owned and operated gold treatment plant. The pathway forward is by continuing to increase our gold resources through exploration and building our own treatment plant.
However, to achieve this strategy, we needed to take a step backwards during this year and temporarily suspend our operations at the Red October underground gold mine. We were not able to attain forecasted results at Red October and accordingly, it would be naive of us to not expect that this would bring disappointment to some shareholders. All indications at the onset were positive and we maintained good initial progress. It was not to last and whilst we could have, and some may say should have, ceased operations earlier, we took the decision to continue as the operations kept delivering important geological and mining information which proved invaluable for our future planning and drill preparations. Red October, in my opinion, will in the future be an excellent asset and combined with the open pits that are ready for development at Fortitude and Devon, we do have an excellent ore source for our own treatment plant. Future new discoveries will make it even better.
The Company will shape up, we are on the precipice of having a great Company, only patience and hard work is what will deliver the results that we are chasing and I am absolutely positive the team at Matsa are up for that challenge and will in the near term steer this Company to the success that we anticipate.
As I have mentioned in previous years, I am in awe with the pool of talent that has come together at Matsa and I thank them for their dedication and comradeship throughout the year. I thank my fellow board members, senior management and the whole great team within our exploration, mining and Thailand office who are always ready to put a dedicated and unwavering effort in the advancement of Matsa. We remain committed to achieving our goals in a safe, environmentally friendly and compassionate community minded manner.
The board appreciates the support offered by the many shareholders who communicated with us during the year.
PAUL POLI
EXECUTIVE CHAIRMAN
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MATSA RESOURCES LIMITED
OPERATIONS REVIEW
SUMMARY - REPOSITIONING TO DELIVER THE STRATEGY
During the year, Matsa Resources Limited ('Matsa' or 'the Company') has repositioned itself to leverage off a growing resource base at Lake Carey (refer Figure 1) and has set about focussing activities with a clear purpose and pathway to establishing a sustainable long term gold inventory, mining and processing business, centred on Lake Carey.
With the strategy now driving business activities, Matsa has focussed its energy into building sufficient resources and reserves that will support construction of a Matsa owned and operated processing plant and deliver improved operating costs and higher margins to the Company. Ultimately, this repositioning of the business is expected to unlock the full potential of the Lake Carey asset.
As a result, a number of important and positive outcomes have been achieved over the past 12 months whose highlights include:
- An 99% increase in Mineral Resource at Lake Carey from 439,000oz @ 2.3 g/t Au to 874,000*oz @ 2.4 g/t Au
- A scoping study into a Matsa owned and operated processing plant at Lake Carey returned a favourable outcome improving the bottom line at the Fortitude mine by A$33M
- Positive cash flow of A$96M from the Fortitude and Devon pits utilising a proposed Matsa processing plant
- Adopted a clear strategic pathway to realising vision of transitioning from an explorer with periodic small scale mining to a long term sustainable miner with processing capacity
- Suspension* of production at the Red October underground mine to enable a full drill out, mine design and rescheduling of the operation
- Established resource and mine development hubs to provide future operational and scheduling efficiencies
- Disciplined and diligent execution of a robust exploration and development project pipeline clearly aimed at delivering on the strategy
- Note these changes are current as of 1st September 2021 but took effect after the June 30 reporting period
Figure 1: Lake Carey Mineral Resource growth since 2020 Annual Report (excluding mining depletion) to 1st September 2021. Refer Resources and Reserves table for actual 30 June statement.
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Matsa Resources Limited published this content on 01 October 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 September 2021 22:21:03 UTC.