4th Quarter Activities Report 2011/2012
Fast Facts ASX Code: HNR
Dear Shareholders, During the 4th Quarter Hannans: §
Successfully completed the acquisition of ASX listed Scandinavian Resources Limited;
§
Diversified its portfolio away from pure greenfields exploration projects towards projects with a potential pathway to production;
§
Appointed Amanda Scott as Exploration Manager;
§
Improved its technical team capability with the integration of the Scandinavian based geologists, geophysicist and mining engineer;
Chairman: Richard Scallan
§
Intersected wide zones of iron and high grade copper-gold mineralisation in Sweden; and
Managing Director: Damian Hicks
§
Intersected a rock unit with the potential to host high tenor nickel sulphides in Western Australia.
Capital Structure Shares on issue: 479.8m Options on issue: 31.2m (ex 7c – 80c) Market cap: $17m (at 3.6c)
Board of Directors
Non-Executive Director: William Hicks
Subsequent to the end of the current Quarter Hannans: §
Non-Executive Director: Jonathan Murray
Completed three diamond drill holes testing a copper-gold target in Sweden;
§
Released to ASX a comprehensive summary of its Scandinavian copper-gold portfolio; and
Projects
§
Initiated multiple field exploration Scandinavian copper-gold portfolio.
Australia Nickel Gold Sweden Iron Copper-Gold Norway Copper-Gold
campaigns
across
its
Hannans now owns JORC copper resources, JORC iron resources and JORC iron exploration targets in Sweden and a large portfolio of coppergold, iron, and nickel projects across three countries. In particular it is the Sweden Iron Project that has generated significant interest primarily due to its location in a low sovereign risk country, its proximity to excellent infrastructure, its JORC compliant resources and excellent results from its preliminary metallurgical test work. At the corporate level however two competing takeover bids launched for ASX listed Norwegian iron mining company Northern Iron Ltd (ASX:NFE) have also brought the markets attention back to the Nordic iron sector. It’s worthwhile noting that in 2010 OM Holdings Ltd (ASX:OMH) acquired a cornerstone position in Northern Iron Ltd (for exposure to an iron mine in the Nordic region) and later acquired a cornerstone position in Scandinavian Resources (for exposure to a large iron exploration project in the Nordic region). For these same reasons it wouldn’t be surprising if the suitors for Northern Iron Ltd became interested in Hannans’ Sweden Iron Project (previously owned by Scandinavian Resources) once it comes to their attention. The macroeconomic environment remains very challenging and therefore Hannans will manage its people, projects and capital responsibly. Yours faithfully,
Managing Director
HANNANS 4 t h QUARTER ACTIVITIES REPORT: J U N E 2 0 1 2
EXPLORATION SUMMARY AND HIGHLIGHTS By Amanda Scott, Exploration Manager Hannans holds a portfolio of mineral assets in Sweden, Norway and Australia. Its dual strategy is focused on creating a pathway to production for the Kiruna Iron Project in Sweden, supplemented with precious and other base metals exploration in Sweden, Norway and Australia. Summary Sweden & Norway •
Flagship Kiruna Iron Project is 30km from the 2Bt Kiruna iron mine (owned by LKAB) – the world’s largest and most modern underground iron mine
•
Pipeline of projects covering gold, copper-gold and lead-zinc prospects in Sweden and Norway Australia •
Forrestania – nickel & gold project located 7km north of Western Area’s Flying Fox nickel mine
•
Lake Johnston – nickel & gold project located 25km south east of Norilsk’s Maggie Hays nickel mine and 100kms west of Norseman, Western Australia.
•
Queen Victoria Rocks – nickel and gold project located 30km south-west of Coolgardie, Western Australia.
•
East Pilbara Project – gold and base metals projects located east of Newman, Western Australia
Highlights Sweden & Norway §
Infill diamond drilling program consisting of 18 holes (total 6337m) was completed during the quarter at the Rakkurijoki Project, Sweden
§
Wide iron mineralisation intercepted from infill drilling at Rakkurijoki Project (115m @ 47% Fe from 316m )
§
High grade copper-gold mineralisation intercepted at Altavaara in addition to wide low grade iron mineralisation (3m @ 5.2g/t Au and 1.3% Cu from 17m)
§
Exploration diamond drilling of three holes (total 653m) testing a highly prospective coppergold target has recently been completed at the Särksjön Project, Sweden
§
First pass exploration completed, including rock chip and soil sampling, at the Kvæfjord Project, Norway
Australia §
New sequence of fertile, high MgO, reduced komatiites with the potential to host high tenor nickel sulphides confirmed at the Mt. Gordon Prospect, Lake Johnston Project
§
Rock chip sampling has returned assay results with up to 21.7g/t Au and 5.6g/t Ag at Skeleton Rocks NW, Forrestania Project
2
HANNANS 4 t h QUARTER ACTIVITIES REPORT: J U N E 2 0 1 2
3
KIRUNA IRON PROJECT RAKKURIJOKI §
Infill diamond drilling continued throughout the quarter at the companies’ flagship Rakkurijoki Prospect; at the end of the quarter a total of 18 holes (6336.9m) have been completed on the Phase 2 Infill program; approximately 6500m remain to be drilled in this infill campaign.
§
The infill drilling has provided a much greater understanding of the iron mineralisation at Rakkurijoki with the geological models continuing to evolve with each new drillhole. The onsite geologists are now recognising the importance the mafic and intermediate dykes penetrating not only the hangingwall meta-aranite and the mafic tuff foot-wall but also the magnetite ore itself; the geometry of a wide intermediate porphyry intrusive, which intrudes the magnetite ore, appears to be controlling the width of magnetite mineralisation (see cross sections C-C’ below).
Table 1: Drilling results received from Rakkurijoki during the quarter (previously released) Hole ID RJO11008
Northing (RT90) 7527665
Easting (RT90) 1686590
Dip -64
Azimuth 321
RJO11009
7527760
1686262
-60
317
RJO11010
7527704
1686306
-66
320
From (m) 421.5 443 231.5 262.9 289.8 314.4 370.9 431.8
To (m) 428.7 487 239.1 270.5 344.2 337.7 405.9 446.3
Intercept 7.2 44 7.6 7.5 54.4 23.3 35 14.5
Fe % 33.5 42.3 45.5 49.7 25.4 27.5 44.7 33.1
All samples submitted to ALS Laboratories (Brisbane) for ME-XRF15b for iron analysis and ME-ICP61 for all other elements.
Preliminary iron grades1, calculated from magnetic susceptibility measurements, are also presented below from holes completed during the quarter at Rakkurijoki. Formal XRF assays are expected over the coming months. Table 2: Preliminary iron results from Rakkurijoki (previously released)
1
Hole ID
Northing (RT90)
Easting (RT90)
Dip
Azimuth
RJO1201
7527698
1686063
-53
319.5
RJO1201 RJO1201 RJO1201 RJO1201 RJO1201
7527570 7527526 7527493 7527660 7527642
1685916 1685952 1685980 1686096 1685986
-47 -58 -65 -62 -49
320.8 318.8 320.6 318.3 320.0
RJO1201
7527556
1686054
-66
320.5
RJO1201
7527758
1686134
-53
313.9
RJO1201
7527481
1686115
-67
312.7
RJO1202
7527724
1686167
-57
315.3
RJO1202 RJO1202
7527642 7527580
1686232 1686164
-56 -70
320 320
RJO1202
7527642
1686232
-70
320
From (m) 135 155 NSA 41 NSA 190 41 58 67 85 185 223 154 172 383 403 428 162 206 Pending 316 436 445 346 426
To (m) 145 190
Intercept 10 35
Fe % 55.4 37.3
57
16
38.5
265 51 63 78 91 207 259 168 201 389 418 447 169 259
75 10 5 11 6 22 36 14 29 6 15 19 7 53
47.3 49.1 42.8 34.3 26.6 43.4 28.5 50.6 44 46.5 41.3 48.7 48.1 43.6
431 441 452 354 460
115 5 7 8 34
46.8 43.4 43.2 31.7 40.1
Estimated average iron grade determined via magnetic susceptibility; formal XRF assays are required to confirm iron grades.
HANNANS 4 t h QUARTER ACTIVITIES REPORT: J U N E 2 0 1 2
Figure 1: Rakkurijoki oblique drill section C-C’ ALTAVAARA Assay results from thirteen diamond drill holes completed at the Altavaara Project in December 2011 were received during the quarter with wide, low grade iron mineralisation intersected; the majority of the drill holes ended in iron mineralisation. §
§
Diamond drilling at the Altavaara Project produced wide, low grade iron results: •
241.2m @ 21.5% Fe (ALT11003)
•
116.7m @ 21.8% Fe (ALT11004)
•
93.7m @ 22.8% Fe (ALT11006)
•
147.5m @ 23.7% Fe (ALT11011)
•
117.6m @ 25.2% Fe (ALT11013)
Diamond drilling at the Altavaara Project returned a copper-gold intercept: of: • 3m @ 5.2ppm Au & 1.3% Cu from 15m (ALT11006)
Prior to completing additional drilling, preliminary metallurgical testwork (Davis Tube Recovery) will be carried out on samples from Altavaara to determine if the iron mineralisation can be upgraded to saleable specifications. If the results are favourable the next round of drilling at Altavaara will be aimed at establishing a maiden JORC inferred resource. The Altavaara mineralisation is geologically different to all of the other deposits in the Kiruna Iron portfolio and therefore requires detailed additional examination.
4
HANNANS 4 t h QUARTER ACTIVITIES REPORT: J U N E 2 0 1 2
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Table 3: Drilling results received from Altavaara during the quarter (previously released) Hole ID
Northing (RT90)
Easting (RT90)
Dip
Azimuth
From (m)
To (m)
Intercept
Fe %
ALT11001
7534131
1701424
-57.0
72.1
13.4
137.1
123.7
20.5
ALT11002
7533356
1701337
-50.0
69.6
ALT11003
ALT11004
7534019
7534066
1701347
1701248
-56.8
-54.1
38.0
134.0
96.0
16.0
166.0
174.0
8.0
26.9
77.7
17.2
258.5
241.2
21.5
inc.
17.2
38.8
21.6
26.0
60.4
75.1
14.8
30.2
211.9
252.8
40.9
27.0
206.0
322.7
116.7
21.8
68.5
ALT11005
7533471
1701283
-50.8
69.1
83.7
149.5
65.8
16.9
ALT11006
7533823
1701342
-40.9
77.3
19.2
112.9
93.7
22.8
26.6
62.2
35.7
25.6
91.9
112.9
21.0
26.7
inc. ALT11007
7533448
1701234
-50.4
70.4
143.0
207.4
64.4
16.8
ALT11008
7533766
1701302
-52.9
67.5
69.0
186.8
117.8
20.0
ALT11009
7533341
1701290
-49.7
69.8
105.0
173.6
68.6
16.6
ALT11010
7533687
1701329
-50.9
75.7
ALT11011
7533976
1701419
-53.7
80.0
109.6
29.6
23.1
126.4
162.2
35.8
27.9
71.4
34.5
182.0
147.5
23.7
inc.
106.9
153.0
46.1
30.1
ALT11012
7534083
1701543
-53.4
250.4
14.3
129.3
114.9
23.1
ALT11013
7534042
1701440
-42.9
72.4
8.9
126.4
117.6
25.2
132.8
143.3
10.5
29.3
All samples submitted to ALS Laboratories (Brisbane) for ME-XRF15b for iron analysis and ME-ICP61 for all other elements.
Drillhole ALT11006 has intercepted copper and gold mineralisation (3m @ 5.2ppm Au and 1.3% Cu) at a shallow depth of 15m. The copper-gold mineralisation (chalcopyrite & bornite) was located within strongly altered mafic volcanics; namely potassic and silica alteration. Whilst the copper-gold mineralisation was unexpected at the Altavaara Project the Kiruna District is highly prospective for copper-gold mineralisation and it is classified as an IOCG province. Despite the primary focus being bulk commodities every prospect is approached with the view it has the potential to host significant precious and base metal mineralisation in addition to iron. The copper-gold target will be refined with additional exploration techniques prior to further drill testing.
Table 4: Drilling results received from Altavaara during the quarter (previously released) Hole ID
Northing (RT90)
Easting (RT90)
Dip
Azimuth
From (m)
To (m)
Intercept
Au ppm
Cu %
ALT11006
7533823
1701342
-40.9
77.3
15
18
3
5.2
1.3
All samples submitted to ALS Laboratories (Pite책) for Au-AA23 for gold analysis and ME-ICP for all other elements.
HANNANS 4 t h QUARTER ACTIVITIES REPORT: J U N E 2 0 1 2
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SÄRKSJÖN PROJECT Late in the quarter exploration diamond drilling commenced at the Särksjön gold-copper project located in the Swedish Caledonides. The diamond drilling was designed to test co-incident IP and EM anomalies generated by the company in 2011 and to also follow up on high grade mineralized outcrop sampled in 2010. Assay results are expected in mid-late August 2012.
KVÆFJORD PROJECT First pass exploration was completed at the Kvæfjord copper-gold project during the quarter. The exploration included field mapping, rock chip sampling and soil sampling. The prospect area is hilly and partly densely forested with the degree of exposure poor; the quaternary cover is generally thin but continuous. The aim of the short field trip was to investigate the surroundings of the abandoned Berg copper mine which was discovered circa 1880 where trial mining took place during four periods between 1895 and 1917. Later work carried out by the NGU during 1976-1980 revealed a 600m long unexplained, weak VLF anomaly that extends ENE away from the Berg mine. 81 C-horizon soil samples were collected along profiles intersecting this VLF anomaly and its’ continuation towards the Storsurnåsen digging. Assay results for the soil and rock chip samples are expected in late August 2012. No work was completed at the Straumsfjellet prospect due to late snow cover.
FORRESTANIA PROJECT Hannans’ Forrestania project, comprising ground in joint venture and wholly owned tenements, is located within the world-class multi-commodity Forrestania nickel, gold and iron greenstone belt. The project adjoins ground owned by major mining companies Western Areas (ASX: WSA) and St Barbara (ASX: SBM).
SKELETON ROCKS PROSPECT Exploration efforts at Skeleton Rocks have continued this quarter with prospect mapping, field reconnaissance and desktop targeting studies being conducted. Rock chip sampling at the Capelli prospect (Figure 2) has returned high grade gold assays with values up to 21.7g/t Au and 5.6g/t Ag returned (Table 5). Of the five rock chip samples collected in the area, two returned anomalous gold values (>0.5g/t Au). The Capelli prospect is located on pastoral land which is currently used for a mixture of livestock grazing and cropping purposes. It is important to note that the rock chips were not taken in-situ and appear to have been ploughed from the field by which they lay. Coincidently, a large NNE trending fault structure appears to pass in the vicinity of the sample area. This structure will be targeted in follow up exploration as a possible source of the gold mineralisation. Follow up exploration activities on the two gold anomalies at Skeleton Rocks South (defined from auger sampling in the previous quarter) and at the Capelli prospect are being planned for the coming quarter. These activities will include the acquisition and interpretation of high resolution aeromagnetic datasets, geochemical sampling (auger and soil sampling) and further field reconnaissance. Overall, the Skeleton Rocks area continues to produce highly encouraging gold anomalies in first pass stages of exploration and has now become a high priority prospect within Hannans Australian project portfolio. Table 5: Rock chip results received from the Capelli Prospect Sample ID 91543 91544 91545 91546 91547
MGA East 692614 692614 692614 692614 692614
MGA North 6510596 6510596 6510596 6510596 6510596
Au g/t 21.7 0.01 0.07 0.97 0.12
Ag g/t 5.6 <0.5 <0.5 0.7 <0.5
All samples submitted to ALS Laboratories (Perth) for Au-ICP21 and ME-ICP61. All co-ordinates are MGA Zone 50.
As ppm 80 <5 84 10 5
HANNANS 4 t h QUARTER ACTIVITIES REPORT: J U N E 2 0 1 2
7
Figure 2: Skeleton Rocks prospect geology and targets (including Capelli prospect)
STORMBREAKER AND LUCY ROCKS PROSPECTS No physical exploration was carried out during the quarter within the Stormbreaker and Lucy Rocks Prospect areas.
HANNANS 4 t h QUARTER ACTIVITIES REPORT: J U N E 2 0 1 2
8
LAKE JOHNSTON PROJECT The Lake Johnston tenements are located approximately 25km south-east of Russian mining giant Norilsk’s Maggie Hays and Emily Ann nickel sulphide mines. Exploration efforts have most recently been focused within the Mt Gordon prospect area where RC percussion drilling program was completed in the previous quarter.
MT GORDON PROSPECT (NICKEL & GOLD) A soil sampling program conducted in 2011 generated a coincident nickel/copper anomaly at the Mt. Gordon prospect (Figure 3). The anomaly was followed up with a small ground based moving-loop electromagnetic survey, however the survey was interpreted to be ineffective due to the highly resistive nature of the ground (survey penetration <100m depth) and failed to generate any significant anomalies. The anomaly was drill tested in the previous quarter with a single RC percussion hole (MGRC059) which intersected a high MgO ultramafic unit which returned elevated nickel values up to 0.56% Ni (Table 2). During the quarter samples taken from MGRC059 were sent for petrographic analysis and geochemical analysis. Results from these two studies have now been received and have indicated the following results: §
Sample taken from MGRC059 indicates the presence of fertile, high MgO, reduced Komatiites with the potential to host high tenor nickel sulphides.
§
Disseminated and trace primary sulphides present, possibly pentlandite and pyrrhotite (unconfirmed – awaiting further petrographic analysis).
§
It is has been interpreted that at least two thick (>30 metres) komatiite units have been intersected in the hole.
§
At the base of the second interpreted komatiite unit there are elevated copper values, suggesting the possible precipitation of sulphides.
§
The komatiites intersected have a significantly high Ni-MgO ratio, indicating that they are enriched in nickel.
§
The komatiites were emplaced in a reduced oxygen environment indicated by the low chromium content.
Initially, a limited quantity of sample was submitted for petrographic analysis which meant that the sulphides present could not be definitively identified as possible pyrrhotite and pentlandite. A second set of samples from MGRC059 have now been sent for further analysis with the hope of confirming the presence of nickel sulphides (pentlandite). Hannans is currently awaiting the results of the second round of petrographic analysis prior to planning follow up exploration activities. It is likely further deep RC percussion drilling, combined with down-hole EM will be utilised if pentlandite is confirmed. This development is very exciting for Hannans as it confirms the presence of a new sequence of nickel bearing komatiites in an area which has no previous record of high MgO ultramafic rocks being present. Table 6: Mt Gordon Ni RC drilling summary table (previously reported) Hole ID MGRC059
MGA East 290825
MGA North 6400803
Dip -60
Azi. 090
Total Depth 174
From (m) 16
To (m) 64
Int (m) 48
Ni (%) 0.30
96
98
2
0.56
118
134
16
0.26
140
168
28
0.28
All samples submitted to ALS Laboratories (Perth) for ME-ICP61. Lower cut-off grade of 0.25% Ni. All co-ordinates are MGA Zone 51.
HANNANS 4 t h QUARTER ACTIVITIES REPORT: J U N E 2 0 1 2
9
Figure 3: Lake Johnston prospect diagram showing the location of the new Komatiite sequence.
QUEEN VICTORIA ROCKS PROJECT The QVR Project has been owned 100% by Hannans since it listed on the ASX in 2003. The area south-west of Coolgardie has attracted significant interest from major nickel miner Mincor Resources. No physical exploration has been completed within the project during the quarter, however data compilation and review continues throughout the project area.
HANNANS 4 t h QUARTER ACTIVITIES REPORT: J U N E 2 0 1 2
10
CASH EXPENDITURE & SHARE PRICE (all quarters since ASX Listing) With the inclusion of Scandinavian Resources Ltd into the consolidated Hannans group, the expenditure for the quarter reflected in the graph below includes expenses of the newly merged group. The corporate transaction cost reflected in the graph below represents the takeover cash expenses for the quarter. HNR Share Price A$ 1.05
Expenses/(Income) A$'000 2,500 Administration & Other Exploration and Evaluation Corporate Transaction HNR Share Price
316
0.95
0.85
2,000
0.75
0.65 1,500 0.55 1,654 0.45 1,640
1,489
1,000
0.35
1,364 1,121
1,347 661 339 390 330
158 261
77
193 143
246 265 268
219
196
69
386 305 281
0.15
475
272
245 158
0.25
546
541
667 131
1,398
721
403 418
500
908 980
292
228
388
45
416 0.05
307
240 283 276 207 235 194 149 172 142 139 158
145 135 92 144 99 109 118 104 97 106 69 30 24 13 0 -0.05 Dec 2003 Jun 2004 Dec 2004 Jun 2005 Dec 2005 Jun 2006 Dec 2006 Jun 2007 Dec 2007 Jun 2008 Dec 2008 Jun 2009 Dec 2009 Jun 2010 Dec 2010 Jun 2011 Dec 2011 Jun 2012 (494)
-0.15
-0.25
(500)
UNAUDITED EXPLORATION EXPENDITURE 2011/2012 The amounts shown below are prepared on an accruals basis.
Geological activities Geochemical activities Geophysical activities Drilling
1st Quarter A$ %
2nd Quarter A$ %
3rd Quarter A$ %
4th Quarter* A$ %
TOTAL
193,212
16.88%
258,915
13.30%
196,111
20.72%
395,093
18.98%
1,043,332
17.05%
109,855
9.60%
272,604
14.00%
179,390
18.96%
169,615
8.15%
731,464
11.95%
53,104
4.64%
32,854
1.69%
5,216
0.55%
114,242
5.49%
205,416
3.36%
A$
%
436,859
38.16%
925,183
47.52%
306,130
32.35%
1,022,918
49.15%
2,691,090
43.98%
Field Supplies
68,524
5.99%
215,843
11.09%
96,877
10.24%
11,686
0.56%
392,930
6.42%
Field camp and travel
77,593
6.78%
146,457
7.52%
63,982
6.76%
40,602
1.95%
328,633
5.37%
Environmental
21,189
1.85%
5,538
0.28%
400
0.02%
27,128
0.44%
–%
48,032
5.08%
33,164
1.59%
81,196
1.33%
1,620
0.08%
1,989
0.21%
25,910
1.24%
29,519
0.48%
2.26%
45,047
2.31%
2,582
0.27%
195,447
9.39%
268,951
4.40%
128,600
11.23%
3,291
0.17%
15,148
1.60%
50,815
2.44%
197,854
3.23%
30,795
2.69%
9,322
0.48%
10,196
1.08%
20,641
0.99%
70,953
1.16%
(770)
(0.07) %
30,158
1.55%
20,624
2.18%
658
0.03%
50,669
0.83%
Rehabilitation
–
–%
–
Feasibility Studies
–
–%
25,875
Annual tenement rent Annual tenement rates Tenement administration Tenement application fees Penalty & exemption fees Total
– 1,144,837
–% 100%
– 1,946,833
–% 100%
–
– 946,275
–%
–% 100%
– 2,081,191
Cash Basis (Appendix 5B)
980,000
1,398,000
1,489,000
1,654,000
Timing Difference
164,837
548,833
(542,725)
427,191
–% 100%
– 6,119,136
* Table includes combined expenditure of the newly merged group since, 15 May 2012, being the effective date of acquisition..
–% 100%
HANNANS 4 t h QUARTER ACTIVITIES REPORT: J U N E 2 0 1 2
11
INVESTMENT MANAGEMENT Hannans Investment Management (HIM) operates by way of an Investments Committee comprising Damian Hicks, William Hicks and Jonathan Murray. HIM seeks to maximise returns through its equity portfolio, hybrid securities and debt. It also has a facility to borrow funds.
VALUATION OF EQUITIES as of 30 June 2012 COMPANY
TYPE
NUMBER
PRICE ($)
VALUE ($)
AGO
FPO
3,594,000
2.02
7,259,880
Other
FPO
165,000
0.05 - 0.19
17,770
Total Equities
NOTES
1
7,277,650
LOAN PORTFOLIO as of 30 June 2012 LOAN LIABILITY FROM (A$,000)
NOTES
Morgan Stanley Smith Barney2
1,374
This is a margin loan - as at 31 July 2012 the loan has been reduced to $849,355.
Unrelated Third Party
800
This loan was entered into by Scandinavian Resources Ltd prior to the acquisition by Hannans Reward Ltd
Errawarra Ltd
488
This loan is outstanding following the in-specie distribution of shares in Errawarra Ltd to Hannans shareholders during the 3rd Quarter. Hannans has been advised there is no intention to call this loan during the current Quarter.
Total
2,662
Notes 1 – 1.33 million AGO shares were sold at an average price of $1.87 during July 2012. 2 – Atlas Iron Ltd (AGO) is held as security for a margin loan through Morgan Stanley Smith Barney.
HANNANS 4 t h QUARTER ACTIVITIES REPORT: J U N E 2 0 1 2
12
CAPITAL STRUCTURE CAPITAL STRUCTURE as of 30 June 2012 SECURITIES
Ordinary Shares Options (ex. 7c) Options (ex. 13c) Options (ex. 20c) Options (ex. 8c) Options (ex. 17c) Options (ex. 25c) Options (ex. 80c) Options (ex. 7c)
NUMBER
OPTION EXPIRY DATE
479,772,810 21,910,017 3,000,000 2,000,000 1,200,000 900,000 900,000 1,000,000 300,000
31-Oct-12 1-Feb-13 30-Jun-13 30-Jun-13 30-Jun-13 30-Jun-13 31-Jul-13 15-Sep-13
TOP 20 SHAREHOLDERS as of 30 June 2012 RANK
NAME
1
Equity & Royalty Investments Ltd
2
SHARES
%
120,000,003
25.01
JP Morgan Nominees Australia Limited <Cash Income A/C>
50,970,324
10.62
3
Gr채ngesberg Iron AB
24,600,000
5.13
4
HSBC Custody Nominees (Australia) Limited
21,187,498
4.42
5
National Nominees Limited
14,297,862
2.98
6
Rio Tinto Mining and Exploration Limited
11,083,743
2.31
7
Marfield Pty Limited
10,524,543
2.19
8
Scandinavian Resources Limited <Dissenting Shareholders A/C>
10,123,878
2.11
9
HSBC Custody Nominees (Australia) Limited - A/C 2
8,453,484
1.76
10
Mossisberg Pty Ltd
7,640,947
1.59
11
Anglo American Exploration BV
7,389,162
1.54
12
Acacia Investments Pty Ltd
6,863,050
1.43
13
Eric Preston Pty Ltd
5,000,000
1.04
14
Mr Kjell Olof Forslund
3,750,000
0.78
15
Merrill Lynch (Australia) Nominees Pty Limited
3,743,025
0.78
16
Aust Global Resources Pty Ltd
3,636,363
0.76
17
Upsky Equity Pty Ltd <Upsky Investment A/C>
3,374,998
0.70
18
Jetosea Pty Ltd
3,265,000
0.68
19
Braveheart Australia Pty Ltd
3,165,135
0.66
20
Bond Street Custodians Limited <CPCPL - TU0022 A/C>
3,000,000
0.63
Totals: Top 20 holders of ORDINARY SHARES (GROUPED)
322,069,015
67.13
Total Remaining Holders Balance
157,703,795
32.87
As at 30 June 2012, there were 1,878 shareholders.
HANNANS 4 t h QUARTER ACTIVITIES REPORT: J U N E 2 0 1 2
13
RECENT PERFORMANCE OF HANNANS SHARES Share Price Performance
900.0
0.10
800.0
0.09
700.0
0.08
0.06
Volume (k)
500.0
0.05
400.0
0.04
300.0
0.03
200.0
0.02
100.0
0.01
0.0 02 Apr 12
Share Price (AUD/Share)
0.07
600.0
0.00 18 Apr 12 04 May 12 22 May 12 07 Jun 12 25 Jun 12 Volume
Broker Activities Commonwealth Securities Ltd Australian Investment Exchange Ltd Morgan Stanley Smith Barney Australia Pty Ltd ETRADE Australia Securities Ltd Bell Potter Securities Ltd Patersons Securities Limited Credit Suisse Equities (Australia) Ltd Macquarie Equities Ltd Veritas Securities Ltd CMC Markets Stockbroking Limited -200.0
-150.0
-100.0
-50.0
0.0 Sell ($k)
50.0 Buy ($k)
100.0
150.0
CONTACTS For further information please contact: Damian Hicks Managing Director
Amanda Scott Exploration Manager
Ben Della-Vedova Business Development Manager
Tel: +61 8 9324 3388 Web: www.hannansreward.com Email: admin@hannansreward.com
Competent Persons Statement The information in this document that relates to exploration results is based on information compiled by Ms Amanda Scott, Exploration Manager, Hannans Reward Ltd, who is a Member of the Australian Institute of Mining and Metallurgy. Ms Scott is a full-time employee of Hannans Reward Ltd. Ms Scott has sufficient experience, which is relevant to the style of mineralisation and types of deposits under consideration and to the activity which has been undertaken to qualify as a Competent Person as defined by the 2004 edition of the â&#x20AC;&#x153;Australian Code for the Reporting of Exploration Results, Mineral Resources and Ore Reservesâ&#x20AC;?. Ms Scott consents to the inclusion in the report of the matters based on the information in the form and context in which it appears.
HANNANS 4 t h QUARTER ACTIVITIES REPORT: J U N E 2 0 1 2
14
TRANSACTION SERVICES & CORPORATE MANAGEMENT Corporate Board Services is designed to assist the Boards and Management of ASX listed companies by assuming responsibility for their day-to-day financial and compliance management. This value added service enables the Board to focus on important strategic decisions and Management to focus on implementing the strategy in a cost effective manner.
STRATEGY • • • •
CBS is wholly owned by Hannans CBS revenue reduces Hannans’ fixed cost CBS offers Hannans shareholders opportunities to access new offerings CBS utilises expertise of Hannans corporate team to provide transaction services and corporate management services to listed and unlisted private and public companies
SERVICES OFFERED • •
•
• •
Management of Initial Public Offering (IPO) Financial Management § Budgeting and forecasting § Bookkeeping ASX Compliance Management § Annual Report § Half-year Report Shareholder Communications Management Company Secretarial & Administrative Support
§ §
Board remuneration, salaries and wages Management reporting
§ §
Quarterly Report ASX & ASIC Documentations
CLIENTELE Our clients include Equity & Royalty Resources Ltd, Naracoota Resources Ltd (ASX: NRR), Errawarra Resources Limited as well as the Hannans Reward Group of companies. The range of services provided this year includes assisting with the preparation of Annual, Half Year and Quarterly Reports, preparation of loan documents, preparation of detailed Board packs for Board meetings, arranging shareholder meetings, preparation of Notices of Meeting and providing full accounting and financial management support to our Australian and Swedish based counterparts. By utilising the services of CBS, clients can focus on their core business activities.
MAIN ACTIVITIES DURING THE QUARTER • • •
Successfully completed the mergers of Hannans Reward and Scandinavian Resources Successfully completed the in-specie distribution of Errawarra Resources from Hannans Reward Implemented a new exploration campaign budgeting system facilitating diversified management reporting requirements across multiple countries
CONTACT Michael Craig (Principal) and Mindy Ong (Principal) 6 Outram Street, West Perth, WA, Australia Tel: +61 8 9322 3383 Email: admin@corpbservices.com Web: www.corpbservices.com