LionGold Corp Ltd AR 2013

166 Pages·2013·4.17 MB·English

CONTENTS
02
Corporate Profi le
06
Milestones
08
Letter to Shareholders
16
Community & Environment
18
Gold Operations
28
Board of Directors
32
Our Management
34
Corporate Information
35
Group Structure
37
Corporate Governance Report
53
Financial Statements
156
Shareholders’ Information
159
Notice of Annual General Meeting
CORPORATE PROFILE
LionGold Corp is Singapore’s first Main Board-listed gold company. The
LionGold’s gold
Group has rapidly established itself in the global gold mining industry over the
production in
FY2013 period. Primary concessions are in Australia, Ghana and Bolivia. The
FY2013 was
Group collectively holds 5.5 million ounces of gold resources, of which nearly
37,000 ounces
900,000 ounces are classified as reserves. Future expansion will be achieved
through further acquisitions and organic growth.
The Group aims to become a global gold producer and is initially targeting
minimum gold resources of 10 million ounces, reserves of 2 million ounces
and annual production of 200,000 ounces by 2014. Acquisition prospects will
have scalable resources with scope for rapid enhancement and which are
currently producing or within a year from production. The intention behind
this selective approach is to unlock asset value while building out the gold
business.
DEVELOPMENTS
Since changing its core business to gold mining, development and exploration
in March 2012, LionGold Corp has completed the following acquisitions:
Company Location
Signature Metals (77%) Ghana, Ashanti Gold Belt
Castlemaine Goldfields (100%) Australia, Central Victoria
Brimstone Resources (100%) Australia, Western Australia
Minera Nueva Vista (93%)* Bolivia, Bustillo Province
LionGold has also acquired an 18% strategic stake in Citigold Corporation
with gold mining operations in Queensland, Australia, a 9% stake in Acadian
Mining Corporation with gold assets in Nova Scotia, Canada. Subsequent to
FY2013, the Group acquired a 13% stake in Unity Mining with primary gold
assets in Tasmania and New South Wales, Australia.
*Through its wholly-owned subsidiary, Vista Gold (Antigua) Corp which owns 97% of Compania Inversora Vista S.A.,
which owns 97% of Minera Nueva Vista
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LionGold Corp Ltd
Operations Strategic Investment
77% Signature 70% Owere 18% Citigold
Metals Mines Corporation
100% Castlemaine 9% Acadian Mining
Goldfields Corporation
100% Brimstone 13% Unity
Resources Mining
100% Vista Gold 93% Minera Nueva
Antigua Vista
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CORPORATE PROFILE
LIONGOLD CORP PROJECTS
AMERICAS
AFRICA
Acadian Mining Corporation
Nova Scotia, Canada (9%)
Signature Metals
AUSTRALIA
Ashanti Gold Belt, Ghana (77%)
Citigold Corporation
Minera Nueva Vista Queensland (18%)
Amayapampa, Bolivia (93%)*
Brimstone Resources
Western Australia, Victoria (100%)
Castlemaine Goldfields
Central Victoria (100%)
Unity Mining
Tasmania, New South Wales (13%)
HISTORY
LionGold Corp Ltd changed its name from The Think
Environmental Company Ltd (TTEC) and its core business to gold mining
following a change in substantial shareholders in 2011. Thereafter, the Group
embarked on an initial acquisition strategy to establish the gold business.
Divestment of non-core assets in the renewable energy industry is nearly
complete, and efforts to sell the office equipment manufacturing business in
China are progressing.
*Through its wholly-owned subsidiary, Vista Gold (Antigua) Corp which owns 97% of Compania Inversora Vista S.A., which owns 97% of Minera Nueva Vista
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MILESTONES
ACQUISITIONS INITIATED IN FY2013
• Signature Metals Limited 77% S$ 66 million
• Castlemaine Goldfields Limited 100% S$ 84 million
• Brimstone Resources Limited 100% S$ 6 million
• Minera Nueva Vista S.A. 93% * S$ 9 million
• Citigold Corporation Limited 18% S$ 24 million
• Acadian Mining Corporation 9% S$ 1 million
ACQUISITIONS INITIATED IN 1H FY2014
• Unity Mining Limited 13% S$ 9 million
FUND-RAISING
• Convertible bond issue S$ 28 million (US$23 million)
• 12 million new shares S$ 12 million
• 42 million new shares S$ 44 million
• 41 million warrant options S$ 3 million
• 228.9 million rights warrants S$ 15 million
*Through its wholly-owned subsidiary, Vista Gold (Antigua) Corp which owns 97% of Compania
Inversora Vista S.A., which owns 97% of Minera Nueva Vista
LIONGOLD CORP
IS A COMPONENT OF
THREE EQUITY INDICES:
• Van Eck Market Vectors
Global Junior Gold
Miner Index
• FTSE Singapore Mid-Cap
Index
• MSCI Global Small Cap
Index
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KEY APPOINTMENTS
• Nicholas Ng, as Chief Executive Officer
and Managing Director
• Raymond Tan, as Executive Director,
Group General Counsel and Chairman of
Signature Metals
• Matthew Gill, as Group Chief Operating Officer, in addition to his
role as Managing Director of Castlemaine Goldfields
• Brendan Goh, as Chief Financial Officer
• Krzysztof (Chris) Gbyl, as Chief Executive Officer of Signature Metals Limited
and Project Director of Owere Mines
Other Developments
• Disposal of a 60% stake in Industrial Power Technology Pte Ltd and
100% of The Think Environmental Co Sdn Bhd and an industrial property
in Singapore for S$12.5 million
• Formation of a Technical Committee to advise the Board of Directors
on acquisitions and operations
• Appointment of PricewaterhouseCoopers LLP as global financial auditor
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LETTER TO SHAREHOLDERS
Dear Shareholders,
On behalf of the Board of Directors (“Board”), I am pleased to present to
you the Annual Report for LionGold Corp (“LionGold” or “Group”) for the
financial year ended 31 March 2013 (“FY2013”).
FY2013 has been a dynamic year for LionGold. Interests in six gold companies,
with a combined transaction value of S$190 million, were acquired, and the
Group has subsequently taken a substantial stake in a second Australian gold
producer. The Group’s mining portfolio now includes 5.5 million ounces of gold
LionGold’s
resources, of which nearly 900,000 ounces are reserves. Maiden commercial
market
gold sales reached S$33.5 million with the successful production ramp up at
capitalisation
Castlemaine Goldfields’ Ballarat Mine. In support of the rapid build-out of the
rose by 37% to
gold business, the divestment of non-core “green energy” assets was nearly
over S$1 billion,
completed.
and the return to
shareholders
Investors have responded positively to the Group’s gold-focused strategy.
was 8.7%
Proceeds of over S$100 million were generated over the year through
the private placement of new equity and issue of convertible instruments.
LionGold’s market capitalisation rose by 37% to over S$1 billion, and the
return to shareholders was 8.7% in Singapore Dollars and 7.4% in US Dollars.
In US Dollar terms, this compares with -4% and -34% for gold and junior
miner gold companies, respectively, in FY2013 period.
Capital raisings and acquisitions have transformed
LionGold’s balance sheet. Compared with FY2012,
net assets rose by over eight-fold to S$276 million.
The Group ended the year with nearly S$47 million
in cash, and borrowings were reduced from S$31
million to S$3 million following the issue of a
US$23 million convertible bond.
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