Speciality Metals International : 2020 Annual Report

	ABN: 77 115 009 106 (ASX: SEI)
	Registered Office:
	Office 06-110, Level 6
	25 King Street
	Bowen Hills Qld 4006
	Ph: [phone]
29 September 2020	Fax: [phone]
www.specialitymetalsintl.com.au
Company Announcements Office	Postal:
PO Box 1496
ASX Limited	Mareeba QLD 4880
Exchange Centre
20 Bridge Street
SYDNEY NSW 2000

2020 ANNUAL REPORT

In accordance with s319 of the Corporations Act 2001 and Listing Rule 4.5, Speciality Metals International Limited ("SEI" or the "Company") submits its 2020 Annual Report for release to the market.

This announcement is authorised for release by the Board

Suzanne Irwin

Company Secretary

About Speciality Metals International Limited

Speciality Metals is an ASX-listed company transforming its flagship tungsten assets at Mt Carbine in North Queensland; leveraging advanced technology, historical stockpiles and unexploited resource with the aim of being the pre-eminent tungsten producer in Australia. The Company also holds gold exploration licences in New South Wales. The Company aims to create shareholder value through the exploration and development of its current portfolio whilst continuing to evaluate corporate and exploration opportunities within the new economy and critical minerals sector.

Annual Report

2020

Corporate Directory

Directors

Share Register

Oliver Kleinhempel

Non-executive Director (Appointed 12 August 2019)

Non-executive Chairman (Appointed 24 April 2020)

Stephen Layton

Non-executive Director

Zhui Pei Yeo

Non-executive Director (Appointed 12 August 2019)

Company Secretary

Suzanne Irwin (Appointed 1 September 2020)

Registered Office

Office 06-110

Level 6, 25 King Street

Bowen Hills QLD 4006

Telephone: [phone]

Website: www.specialitymetalsintl.com.au

Email: [e-mail]

Principal Place of Business

6888 Mulligan Highway

Mount Carbine QLD 4871

Automic Pty Ltd

Level 5 126 Philip Street Sydney NSW 2000

1300 288 664 (within Australia) or [phone]

Auditors

Nexia Melbourne Audit Pty Ltd

Level 12, 31 Queen Street

Melbourne VIC 3000

Telephone: [phone]

Facsimile: [phone]

Stock Exchange Listing

Listed on the Australian Securities Exchange (ASX) ASX Code: SEI

ACN: 115 009 106

ABN: 77 115 009 106

Contents

1. Chairman's Address
2. Chief Executive Officer's Letter

1. Operating and Financial Review

1. Tenement Schedule
2. Mineral Resources and Ore Reserves Statement

1. Directors' Report

1. Consolidated Statement of Profit or Loss and Other Comprehensive Income
2. Consolidated Statement of Financial Position
3. Consolidated Statement of Cash Flows
4. Consolidated Statement of Changes in Equity
5. Notes to the Consolidated Financial Statements

1. Directors' Declaration
2. Auditor's Independence Declaration
3. Independent Auditor's Report

1. Shareholder Information

1. Forward Looking Statements

Speciality Metals International Limited Annual Report 2020

1

Chairman's Address

We invite you to continue to support us in our journey to realise the potential of Speciality Metals to add significant value beyond our existing assets and for all stakeholders.

Dear Shareholders

Welcome to the 2020 annual report for Speciality Metals International Limited (Speciality Metals or Company). The past 12 months has been a period of consolidation for the Company; building on the momentum started in 2019 to transition from a junior exploration company to an emerging tungsten producer. Against the backdrop of the COVID-19 pandemic and these unprecedented times, we have stayed on track.

Our leadership team changed during the year. We thank you for your patience, trust and continued support as the team assembled to execute the operational strategies for our flagship projects at Mt Carbine and to rebuild the corporate foundation. We are committed and together, we have the mix of skills and experience to navigate the Company through an increasingly complex operating environment.

The world is facing enormous challenges such as climate change, political and social polarisation, rising protectionism and supply chain uncertainty. Businesses and society are interdependent, and Speciality Metals does not operate in a vacuum. Society and investors now have expectations in relation to a company's environmental, social and governance (ESG) performance and are increasingly holding executives to account. Given these fundamental shifts, the Board with the leadership team have taken the time to reflect on the Company's purpose, values and positioning. We believe everything starts with a purpose, and it is necessary for all of us to align on what we are about so that we can move in the same direction.

We have articulated our Purpose as:

Resourcing the new economy for a better tomorrow

We are a value-oriented resources company, sustainably producing and managing new economy minerals and metals. We maximise the potential of our assets through resource- efficiency and investment in our people to deliver materials that are critical for a better tomorrow. It's how we drive value in our operations, approach new opportunities and at the same time deliver positive societal impact while minimising our environmental footprint.

Our focus on new economy minerals are those which are in growing demand to meet the global shifts in energy, industry and sustainability. Tungsten has, just this month, been recognized by the European Commission as having the highest economic importance of all raw materials, and is already listed by USA, Japan, India and Australia as a critical mineral (that is, vital for its economy but having a high supply risk). Our team is committed to enhancing Speciality Metals' existing portfolio and business model to contribute to this globally relevant agenda.

This is exciting and challenging. We invite you to continue to support us in our journey to realise the potential of Speciality Metals to add significant value beyond our existing assets and for all stakeholders.

Oliver Kleinhempel

Non-Executive Chairman