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Company Review 3
Review of Operations 5
Technology Investment 13
Corporate Governance Statement 14
Directors’ Report 15
Financial Statements 19
Profit and Loss Statement 19
Discussion and Analysis of Consolidated Profit and Loss Statement 19
Balance Sheet 20
Discussion and Analysis of Consolidated Balance Sheet 21
Discussion and Analysis of Consolidated Cash Flows 21
Statement of Cash Flows 22
Notes To and Forming Part of the Financial Report 23
Directors’ Declaration 25
Independent Audit Report 26
Shareholder Information 27
Summary of Mining Tenements Inside Back Cover
C O N T E N T S
C O M P A N YP A R T I C U L A R S
DIRECTORS
James A. Wall - Chairman
Robert E. Besley - Managing Director
Ian R. Plimer
Rene Rivkin
COMPANY SECRETARY
Gillian Swaby
REGISTERED AND HEAD OFFICE
Level 4, 12-14 O’Connell Street
Sydney, New South Wales 2000
GPO Box 3386
Sydney, New South Wales 1043
Telephone: +61 2 9221 1805
Facsimile: +61 2 9221 0580
Email: [email protected]
Website: www.redfire.com.au
SHARE REGISTRY
Computershare Registry Services Pty Limited
Level 2 Reserve Bank Building
45 St George’s Terrace
Perth, Western Australia 6000
Telephone: +61 8 9323 2000
Facsimile: +61 8 9323 2033
ANNUAL GENERAL MEETING
A Notice of Meeting and Proxy Form
accompanies this Annual Report.
AUDITORS
PricewaterhouseCoopers
Chartered Accountants
The Quadrant, 1 William Street
Perth, Western Australia 6000
Telephone: +61 8 9238 3000
Facsimile: +61 8 9238 3999
SOLICITORS
Williams & Hughes
Barristers & Solicitors
1st Floor, 25 Richardson Street
West Perth, Western Australia 6005
Telephone: +61 8 9481 2040
Facsimile: +61 8 9481 2041
STOCK EXCHANGE LISTING
The Company’s shares and options
are quoted on the Official List of
Australian Stock Exchange Limited.
The Home Exchange is Perth.
ASX Code: RFR (shares)
RFRO (options)
AUSTRALIAN COMPANY NUMBER
009 423 858
AUSTRALIAN BUSINESS NUMBER
27 009 423 858
Burra
Murray Basin Projects
Broken Hill
O P E R AT I O N S
Z I N C - S I LV E R - L E A D Broken Hill, NSW (acquiring 100%)
E X P L O R AT I O N
M I N E R A L S A N D S (Titanium and Zircon) Murray Basin, NSW and South Australia
C O P P E R Burra, South Australia (Mount Isa Mines Limited earning 70%)
C O P P E R - G O L D Curnamona, South Australia
C O P P E R - G O L D Moonabie, South Australia (Helix Resources NL earning 80%)
O PA L S North Coober Pedy, South Australia and Hebel, Queensland
MINERALS PROJECTS
Refire is positioned to become a
significant producer of zinc-silver-lead
through the acquisition of mining
assets at Broken Hill.
The Company holds significant titanium
and zircon potential through a major
land position in the rapidly developing
Murray Basin mineral sand province.
Joint venture interests are held in
prospective copper-gold projects.
2
C O M P A N YH I G H L I G H T S
TECHNOLOGY INVESTMENT
Redfire holds rights to a 30% interest in Layer Nine Pty Ltd
(formerly Orange Solutions Pty Ltd), a company specialised in
internet security and mobility solutions.
PRINCIPAL PROJECTS
Moonabie
uring the past year the Company made a major change in strategic direction towards becoming a base metal miner
through agreements to acquire the central Broken Hill mining titles and other assets.
The Board recently announced agreement on terms to acquire a major part of the Broken Hill Field, one of the
world’s largest zinc-silver-lead deposits, with the aim of resuming mining operations and developing new
production. The Broken Hill orebody has produced more than 200 million tonnes of high grade zinc-silver-lead ore
worth some $70 billion in today’s values.
The acquisitions cover the central 3.8 kilometres of the main Broken Hill orebody together with the Pinnacle Mine
to the south of Broken Hill which includes processing plant and mining equipment. Substantial unmined
underground resources are present that will be evaluated for production. Some 250,000 tonnes of Broken Hill ore,
stockpiled at the Pinnacle Mine, is being evaluated for treatment through the Pinnacle mill as a source of early cash
flow. Open cut resources at Broken Hill have the potential to significantly add to early production. In addition,
there is a high prospectivity for the discovery of new orebodies parallel to and beneath the main deposit.
The Company increased its interest in the Murray Basin mineral sand province through further exploration tenement
applications within the highly prospective central part of the basin. The Murray Basin is emerging as a major new
mineral sand province with the potential to become a dominant world supply source for titanium and zircon
feedstocks. The Company now holds a large land position in the central portion of the basin which hosts the most
important mineral sand deposits found to date. At the Wamberra project Redfire has identified a number of heavy
mineral strandline systems based on pre 1994 drill hole data. Significant heavy mineral deposits have been
discovered on nearby tenements. Exploration drilling on the Company’s New South Wales tenements can
commence when Native Title access agreements are completed.
Copper and gold exploration interests in South Australia are being explored by joint venture partners at Burra
(Mount Isa Mines Limited) and Moonabie (Helix Resources N.L.), both targeted at large scale mineralising systems.
Also during the year, the Company undertook a study of technology investments which identified Layer Nine Pty
Ltd (formerly Orange Solutions Pty Ltd) as a company with leading edge technology solutions and outstanding
growth potential. Redfire subsequently acquired a 20% interest in Layer Nine with conditional agreement to
acquire a further 10% through the issue of Redfire shares. The Company’s investment in Layer Nine Pty Ltd
represents a growth investment opportunity through a business developed around the supply, installation and
management of firewall security, wireless LAN and other mobility solutions for corporate customers. The rapidly
expanding use of the Internet as a business tool has provided the opportunity for Layer Nine to develop a range of
solutions to enable secure, high volume, mobile systems. Access to customers is being developed through proposed
partnership relations with telecommunication companies.
We look forward to the coming year with exciting projects advancing on a number of fronts. As development of the
Broken Hill project progresses, the Board will be evaluating opportunities to separate and crystallise its investment
in Layer Nine.
Mr. Tim Clifton recently resigned from the Board after 10 years as Chairman of the Company. On behalf of the
Board we would like to acknowledge the very significant contribution that Mr. Clifton has made to the development
and guidance of the Company since its inception and record our appreciation for the value he gave to the Company.
J A Wall R E Besley
Chairman Managing Director
D
3
C O M P A N YR E V I E W
4
LONG SECTION - BROKEN HILL LODE HORIZON
B r o k e n H i l l B a s e M e t a l P r o j e c t
The Company recently announced that it has reached agreement on the principal terms to acquire a major position in the
world class Broken Hill zinc-silver-lead deposit and to acquire the Pinnacle Mine which includes mining equipment and a
processing plant designed to treat Broken Hill ore.
CONSOLIDATED MINING LEASE 7 (CML 7)
Redfire, through its wholly owned subsidiary Rangeside Pty Ltd, has reached agreement in principle to acquire CML 7 at
Broken Hill from Normandy Mining Investments Pty Ltd. This title covers the central 3.8 kilometres of the Broken Hill
zinc-silver-lead orebody.
Under the terms of the acquisition, payments will be staged with three payments totaling $500,000 to be completed on
receipt of approvals to recommence mining and a further two payments of $750,000 at 6 months and 12 months from the
date upon which those approvals are received by Redfire giving a total acquisition cost of $2 million. Acquisition is
subject to completion of a formal Sales and Purchase Agreement, Ministerial approval and environmental clearances from
the NSW Government to Normandy Mining Investments Pty Ltd.
The lease includes the original site of discovery of Broken Hill in September 1883 and the original mining site of the
Broken Hill Proprietary Company Ltd. Capital generated from CML 7 funded the industrialisation of Australia.
Since discovery, open pit, underground and remnant mining from what is now CML 7 has produced more than 58 million
tonnes of ore grading around 6.5% zinc, 280g/t silver and 12.5% lead, with production dominantly by Broken Hill
Proprietary Company Ltd in the early stages (13 million tonnes), Broken Hill South Ltd (20 million tonnes) and most
recently Minerals Mining & Metallurgy Ltd (4 million tonnes) who ceased mining in 1991.
Major unmined underground resources are present within the Western Mineralisation and Centenary lodes reported by
Minerals Mining & Metallurgy (MMM) to total 29.4 million tonnes at 3.4% zinc, 28g/t silver and 2.1% lead. A report to
MMM on the higher grade lenses within these lodes estimated a potential for the Western Mineralisation of between 3.2
and 6.5 million tonnes at 7.9% zinc, 37g/t silver and 4.1% lead. Underground development is in place to access the
Western Mineralisation. Existing data is being reviewed aimed at a scoping study for underground production from the
higher grade zones.
Open pit reserves and resources are estimated at 1.6 million tonnes at 5.1% zinc, 176g/t silver and 7.9% lead based on
figures reported by Minerals Mining & Metallurgy Ltd in 1991 as part of the remaining ore on CML 7. These are located
in the Kintore Pit, Block 14 Pit and the outcropping Brownes/Marsh area, and comprise oxide (silver) ore, sulphide ore
and stope fill. The stope fill is dominantly tailings from early gravity separation plants at a time when zinc was not
recovered and lead and silver recoveries were low. From drilling and previous remnant mining the fill is estimated to
grade around 7% zinc, 100 to 160g/t silver and 4% to 10% lead.
Potential exists to significantly expand the open pit reserves to the south of the Kintore Pit and at the Old BHP Pit.
Blocks of ore are present within underground workings and scoping studies have commenced to evaluate
production potential through decline access.
Except for the tribute mining undertaken by Pinnacle Mines Pty Ltd and Barrier Developments Pty Ltd, all
past production was during a time of very high royalty, taxes, freight and labour costs and hence only very
high grade ore was mined. Redfire Resources Ltd will undertake a complete review of all historical mine
and drill data to identify additional ore and exploration targets. Despite the 117 years of mining at CML 7,
considerable potential remains. Very little exploration has been undertaken for repetition of Broken Hill
mineralisation to the east of the main line of lode, and for projections of ore along major structures.
5
R E V I E W O FO P E R A T I O N S
PINNACLE MINES PTY LTD
Redfire has also reached agreement on principal terms to acquire Pinnacle Mines Pty Ltd whose assets include mining
titles, the Pinnacle Mine, a processing plant and mining equipment. Subject to completion of a formal Sales and Purchase
Agreement, Redfire will acquire all the shares in Pinnacle Mines Pty Ltd for a payment of $1 million in cash and $2.5
million in shares in Redfire.
Through this agreement Redfire acquires the right to treat stockpiled ore located at the Pinnacle Mine. The stockpile,
which totals approximately 250,000 tonnes, comprises sulphide ore, oxide ore, concentrate and tailings. The stockpile is
currently being evaluated by Redfire to determine the potential to produce an early cash flow. Redfire will make a
royalty payment for stockpile ore treated.
A flotation mill at the Pinnacle Mine was designed for the treatment of the different ore types from CML 7 by the
addition of a gravity circuit. The plant has a rated capacity constrained to 90,000 tpa with the potential to increase this
capacity and improve the treatment circuit.
Since discovery in 1884, the Pinnacle Mine has produced 200,000 tonnes of 5% zinc, 195g/t silver and 6.8% lead from
five narrow zinc-silver-lead Broken Hill-type lodes. Recent drilling has located zinc rich lodes with associated gold
values with potential for greater than 2 million tonnes within the Pinnacle leases.
M i n e r a l S a n d s P r o j e c t s
MURRAY BASIN
New South Wales, Ivanhoe - EL 5577 (100%), Wamberra ELAs 1531 and 1534 (100%)
South Australia, Mannum/Lameroo - ELs 2542 and 2564 (100%); EL 2279 (earning 80%)
The Company has a large tenement position in the Murray Basin, totalling approximately 12,000 square kilometres, with
projects located in areas of active exploration and discovery.
In less than five years, exploration in the Murray Basin has identified over thirty new mineral sand deposits. Of these,
detailed drilling of twenty deposits has defined a combined resource base of more than 10 million tonnes of heavy
mineral (rutile, zircon and ilmenite). The Department of Mineral Resources of NSW has estimated a resource potential
for the basin of 60 million tonnes of heavy mineral with an inground value in excess of $13 billion. The first mineral
sand mine in the basin is expected to be in production by late 2000. Government bodies and industry have jointly
evaluated infrastructure requirements to facilitate exploitation and development of the resources that are being rapidly
identified. There are at least six projects that have reached the feasibility stage of development.
As well as classic strandline beach placers such as those mined on the east and west coasts of Australia, the Murray Basin
is host to a number of massive but fine-grained heavy mineral sand deposits. These fine-grained deposits remain a
challenge for industry to profitably exploit, but success will create very large additional reserves.
The Murray Basin has the potential to become the dominant supply source for the world’s titanium and zircon industry.
Redfire’s large exploration holdings have significant potential to host valuable heavy mineral resources. New discoveries
of potentially exploitable deposits are currently being defined in proximity to the Company’s projects. Drilling on the
Company’s projects can commence on completion of Native Title agreements.
6
7
R E V I E W O FO P E R A T I O N S
The most concentrated area of heavy mineral deposits found to date lie along a central belt defined by a series of
structural features that have helped preserve the target fossil beaches at shallow depth. This structural belt extends over
some 500 kilometres and hosts the Kulwin and Rownack/Woornack deposits of Iluka Resources Limited, Murray Basin
Titanium’s (RZM-Sons of Gwalia joint venture) Wemen, Cylinder, Birthday Gift and Jacks Tank deposits, and BeMaX
Resources NL’s Ginkgo and associated deposits. Redfire’s Wamberra project is located within this central zone while the
Ivanhoe project covers the northern extension of the zone.
WAMBERRA PROJECT, NSW
Redfire holds two exploration licence applications covering approximately 1,500 square kilometres located near Mildura
in the central northern Murray Basin. The project is located within the trend of ‘economic’ mineral sand deposits that
extend from Kulwin (Iluka) in the south, northwards through Wemen (MBT) and Birthday Gift (MBT) to Jacks Tank
(MBT) and continuing north into Redfire’s Ivanhoe project.
A number of targets are considered encouraging. Drilling by Aberfoyle Resources Limited prior to 1994 intersected
greater than 1% coarse grained heavy minerals in some 30 drill holes on wide spaced drilling centres. Follow up drilling
was not undertaken. Redfire’s analysis of Aberfoyle’s drilling results has identified at least 10 heavy mineral beach
strandline systems and a further 8 envelopes containing elevated levels of heavy minerals that may also represent
mineralised systems. Both beach and dunal sand environments hosting heavy minerals have been interpreted.
Because of inadequate drilling density these envelopes remain untested and could host significant heavy mineral deposits.
Follow up of similar results elsewhere in the basin has resulted in a number of deposit discoveries, such as the Cylinder
deposit (MBT) located less than 5km to the east of the Wamberra project.
Some of the significant mineralised intersections recorded in the Wamberra project include:
MLZ02/51 12m @ 2.5% HM (Moonlight Dam) from 16m
TCZ02/30 25m @>1% HM (based on field estimates) from 3m (including 10m @ > 4% HM)
SHZ11/22 8m @ 3.88% HM from 6m
KTZ02/9 10m @ 1.87% HM from 10m
CKZ01/82 6m @ 3.98% HM from 16m
SHZ08/150 8m @ 2.48% HM from 8m
In addition to coarse grained strandline systems, significant finer grained offshore style mineralisation has also been
recorded over an area of 5km by 30km (the Sherwood deposit). Aberfoyle Resources recorded mineralised intersections
up to 30 metres thick in offshore sands during drilling.
Murray Basin Titanium is expected to site a heavy mineral separation plant in the vicinity of Mildura, a centralised
location to their mining operations. As the Wamberra Project is located immediately north of Mildura this could facilitate
early development of discoveries.
8
Southern
Ocean
SturtiH ghway
Tra
nsco
l
y
nt i nentaR
wa il a
BarrierHighway
WesternHighway
Victoria
NewSouth Wales
SouthAustralia
BrokenHill
Echuca
Mildura
Burra
Horsham
Mannum
Ivanhoe
Massidon
MindarieMercunda
Birthday Gift
JacksTank
Kulwin
Rownack
EchoAcapulco
Cylinder
Wemen
Bondi
Gingko
CentralStructural Zone
Long TanLone Pine
Moonlight Dam
Ivanhoe Project
Wamberra Project
0 100
Kilometres
141 EO
145 EO
37 SO
33O
South AustralianProject
Fine-grainedHeavy MineralDeposit
Advanced projects
Basin Margin
Deposits outlined
THE MURRAY BASIN
IVANHOE PROJECT, NSW
Exploration Licence 5577 is located around Ivanhoe in NSW and covers an area of approximately 8,800 square
kilometres. Redfire has identified shallow to moderately shallow sands (less than 20 metres depth) in the project area
covering a combined area of more than 6,000 square kilometres.
Analyses of past CRA drilling and some 550 registered water bores has developed a picture of variably shallow to deep
basement and thick intersections of medium to coarse grained sands, interpreted to be the target Loxton Sands. Basement
outcrop and Digital Elevation Modeling points to a series of subdued topographic expressions thought to relate to fault
controlled structures, forming a palaeo geographical setting of headlands and offshore island features (the Ivanhoe
Embayment).
Headlands, offshore islands and longshore drift are expected to have influenced the sedimentary pattern in the area
resulting in the formation of curved beach systems. The classic east coast heavy mineral sand province formed in this
type of setting.
Drilling by CRA on widespaced centres in the Ivanhoe area in 1986 recorded seven drill intersections with significant
heavy mineral content. These could represent the presence of seven mineralised envelopes and are the principal targets
for initial exploration.
Mineralised envelopes typically contain broad zones of lower grade sands surrounding one or more high grade cores.
These result from periods of stable sea levels and prolonged activity of wave action concentrating the heavy minerals and
winnowing of the lighter minerals.
Access agreements with Native Title claimants are in progress to enable drilling programmes to commence.
MANNUM PROJECT, S.A.
Redfire holds 1,356 square kilometres of tenure over the southwestern margins of the Murray Basin in South Australia,
where Loxton Sands are known to occur at shallow depth. Previous drilling by BHP and Aberfoyle Resources indicated a
widespread distribution of the Loxton beach sands.
Landsat, DTM and aerial photography studies across the basin in South Australia suggest there are geological features
which may reflect the development of buried strandline systems. These features appear well developed within the
Mannum project.
Murray Basin Minerals NL holds a dominant exploration land position in the South Australian portion of the Murray
Basin with advanced exploration and feasibility studies in progress.
The development potential of any heavy mineral deposits that may be present within the Mannum project will be largely
determined by the results from Murray Basin Minerals’ project.
9
R E V I E W O FO P E R A T I O N S
10
C o p p e r - G o l d P r o j e c t s
BURRA, SOUTH AUSTRALIA
ELs 2217 and 2161 (100% reducing to 30%)
The Burra Copper Mine, first developed in 1845, produced 2.7 million tonnes of ore at 3% copper prior to its closure in
1982. During its peak period of production, the mine was one of the world’s most important sources of copper, based on
the high-grade oxide ore being extracted.
The Burra deposit formed along the Kingston Fault, a major deep-seated regional structure. Igneous intrusions associated
with the deposit display mineralisation and alteration styles similar to those found in porphyry copper deposits.
The Burra deposit is surrounded by strong hydrothermal alteration, which extends northwards along the Kingston Fault
trend. It is this extension that formed the basis of a target generated by Redfire Resources for exploratory work.
Redfire holds two exploration licences covering the old Burra mine as well as potential extensions to the north and south of
the mine. The target is a large-scale copper system associated with high level intrusives along the concealed fault structure.
Exploration programmes by Redfire have shown that hydrothermal alteration has extended for up to five kilometres north
of the Burra mine. This follows the major fault structure that is concealed beneath a thin layer of alluvial cover. The
Burra Copper Mine outcrops at the southern end of this alteration system.
Through a joint venture agreement, Mount Isa Mines Limited (MIM) has completed geophysical surveys to test for
sulphide mineralisation extending north from the Burra Copper Mine and at the Mullaby magnetic anomaly, located
approximately eight kilometres northeast of Burra.
An Induced Polarisation (IP) method has been run on traverses across the targets to test for mineralisation in the bedrock.
Results show that several anomalous zones are present beneath alluvial cover and an initial drilling programme has been
undertaken to test the zone. MIM has completed 5 holes at North Burra and 2 holes at Mullaby. The results of this
programme are being evaluated.
MIM is earning a 70% interest in the Company’s Burra tenements by spending $400,000 on geophysical and drilling
programmes. When MIM has earned its 70% interest, Redfire can elect to retain a 30% contributing interest or a 12.5%
interest carried to commencement of a mine feasibility study.
CURNAMONA CRATON, SOUTH AUSTRALIA
Boolcoomata, EL 2365 (100%)
In the Curnamona Craton exploration on EL 2365 for copper, gold and base metals has been conducted by Mount Isa
Mines Limited (MIM) under a joint venture agreement. Following a search for bedrock geochemical anomalies, MIM
withdrew from the joint venture.
The MIM programme concentrated on locating mineralisation beneath alluvial cover and while a number of anomalous
results were obtained, these did not extend over a sufficiently large area to be of interest to MIM.
Following the withdrawal of MIM, Redfire is undertaking a review of the data aimed at defining targets for drill testing. This
work will concentrate on the Oscar Prospect where a 250 metre long zone contains outcrops of copper-gold mineralisation.
While this mineralisation has significant potential, at present it remains undefined and has not been drill tested.
Within the Curnamona Craton significant copper and gold mineralisation has been discovered both north and south of
Redfire’s Boolcoomata licence. The Curnamona Craton is also host to the world class Broken Hill orebody.
GAWLER CRATON, SOUTH AUSTRALIA
Moonabie, EL 2529 (100% reducing to 20%)
Helix Resources NL is earning a 51% interest in the Company’s Moonabie licence through exploration expenditure of
$80,000 with the right to take their interest to 80% through the expenditure of a further $160,000. Helix is an active
explorer in the region and has a strategic alliance with BHP that includes exploration of the adjacent Middleback Ranges
where BHP operates a number of iron ore mines.
Redfire acquired the licence after interpretation of geophysical data identified a number of features within the title that
were considered potential targets for copper-gold mineralisation. Proximity of the licence to volcanic and intrusive
systems together with suitable reactive host rocks such as dolomites and iron formations, is also encouraging.
Helix has completed a first pass calcrete geochemical sampling programme of 254 samples collected on a 400m by 800m
grid. Results indicate the presence of a number of coherent low-level gold anomalies up to 5.2ppb. A coincident arsenic-
gold-lead anomaly associated with a magnetic feature has been outlined.
Future work will involve magnetic traverses over calcrete and/or geophysical anomalies identified in the previous
programmes with follow up drilling of significant targets.
ORANGE, NEW SOUTH WALES
EL 5770 (50%)
The Company has been granted an exploration licence covering an area of approximately 40 square kilometres
located five kilometres south of Orange. The licence area surrounds the Lucknow gold mine and contains a
number of untested geochemical anomalies for gold and base metals. The area is prospective for large tonnage
copper-gold deposits.
Redfire has entered into a letter agreement with Mr. Chris Johnston whereby Johnston has an initial 50%
interest for providing the technical data but with standard water down provisions applying to disproportionate
funding of the project.
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R E V I E W O FO P E R A T I O N S
12
O p a l P r o j e c t s
Australia continues to supply more than 90% of the world’s gem quality opal and has the geological potential for large
scale undiscovered opal fields.
The Company has a retained interest in opal projects in Queensland and South Australia.
HEBEL PROJECT, QUEENSLAND
EPM 9303, EPMA 12940 and ML 50139 (100%)
Exploration by Redfire at its Hebel Project has identified a potential new black opal field in Queensland, considered to
represent a geological extension of the Lightning Ridge district.
Redfire Resources has recently been granted a Mining Lease over the Ironbark and Box prospects where the Company
obtained gem quality opals in previous bulk sampling programmes. A total of 59 commercial grade opals (123cts) were
recovered from 4 of the 5 bulk sample sites.
Redfire has entered into a production agreement with a Lightning Ridge based opal mining company whereby Redfire
receives 22.5% of opal output (after costs) for the first $500,000 worth of opal production and 32.5% thereafter (after costs).
Redfire has the right to resume management of the project on a 50% equity basis after production of opal worth $5M.
The miner has commenced further drilling activities on the Hebel project.
SOUTH AUSTRALIA
ELs 2252, 2266 and 2672, ELA(O)s 327/97 to 329/97 and 331/97 (100%)
Redfire has three exploration licences and four applications for title adjacent to the Coober Pedy and Andamooka Opal
Fields. The Company is in the process of obtaining Native Title clearance and approvals from the South Australian
Department of Primary Industries and Resources in order that field activities can commence.
Photogeological evaluation and field mapping have highlighted target areas for repetitions of Coober Pedy type opal deposits.
S a f e t y a n d E n v i r o n m e n t
Occupational health and safety is a high priority for the Company and procedures are maintained at operational sites to
achieve industry best practices. The Company supports ongoing improvements in industry standards and maintains an
active awareness of issues through membership of industry groups.
The information contained in this review is based on information compiled by R.E. Besley who is a corporate member of theAustralasian Institute of Mining and Metallurgy and who has more than five years’ experience in the field of activity being reported on.
This report accurately reflects the information compiled by that member.
T e c h n o l o g y I n v e s t m e n t
LAYER NINE PTY LTD (FORMERLY ORANGE SOLUTIONS PTY LTD)
In February this year Redfire completed agreements to purchase 30% of Orange Solutions Pty Ltd (recently renamed
Layer Nine Pty Ltd) through payments totaling $1 million and the issue of shares in Redfire to the value of $1 million.
Layer Nine specialises in Internet security and mobility applications. The business is based on product distribution,
network management and the installation of customised information technology (“IT”) and Internet Protocol (“IP”)
solutions for corporate customers.
Layer Nine is developing and distributing a range of enabling technologies, which underpin modern communications
infrastructure and which fall into two broad categories:
1. Managed Gateway Services - which comprise secure connectivity to the Internet and secure turnkey solutions,
for example:
- remote network/security management
- xDSL modems
- internet traffic and content management
- URL screening
- anti virus intrusion detection
2. Wireless Connectivity Products - which comprise a broad range of secure wireless solutions utilising various
networking products customised for each application, for example:
- wireless LAN
- mobility solutions utilizing WAP and PDA devices
To support its business initiatives and market access Layer Nine has secured strategic customer and distributor alliances
that include relationships with telecommunication companies and world class manufacturers. Funding alternatives are
being evaluated by Layer Nine to support its business development and rapid growth.
LAYER NINE PRODUCTS/SOLUTIONS
The products and services distributed and developed by Layer Nine are focused on business solutions for secure Internet
communications with extensions into workforce mobility applications through Internet related devices.
The Internet as a medium is attractive to business by providing low cost communication, flexibility and remote access.
However, for many businesses lack of security is a major issue.
By combining Layer Nine Managed Firewall Services and Nokia/Check Point Firewall -1TM Security Suite, the power
and mobility of remote and secure access through the world wide web (the Internet) is achieved at a relatively
low cost. This enables business to use the Internet to create virtual private networks (“VPN”) for its employees
giving them the ability to communicate electronically with the office networks from any location throughout
the world. This connectivity can be provided through both cable and wireless links. The Nokia/Check Point
Firewall product provides one of the world’s most advanced, end to end security solutions.
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R E V I E W O FO P E R A T I O N S
14
BOARD OF DIRECTORS AND ITS COMMITTEES
The Board is responsible for the overall Corporate Governance of the economic entity including the strategic direction,
establishing goals for management and monitoring the achievement of these goals. The Board has also established a
framework for the management of the economic entity including setting levels of remuneration for Executive Directors,
Managers and senior personnel, an overall framework of internal control and the establishment of appropriate ethical standards.
The Board regularly reviews operational and financial performance and reviews and approves detailed budgets and
investment opportunities. Being a small company at present, the Board works closely with executive management to
identify and manage operational, financial and legislative risk.
COMPOSITION OF THE BOARD
The composition of the Board is determined using the following principles:
• The Board should comprise four Directors. This number may be increased where it is felt that additional expertise is
required in specific areas, or when an outstanding candidate materialises.
• The Chairman of the Board should be a Non-Executive Director.
• The Board should comprise Directors with a broad range of expertise.
When a vacancy exists, through whatever cause, or where it is considered that the Board would benefit from the services
of a new director with particular skills, the Board selects a candidate or panel of candidates with the appropriate expertise
and experience. The Board then appoints the most suitable candidate who must stand for election at the next general
meeting of shareholders.
The Company does not have a formal Nomination Committee.
INDEPENDENT PROFESSIONAL ADVICE
Each Director has the right to seek independent professional advice at the economic entity’s expense. However, prior
approval of the Chairman is required, which should not be unreasonably withheld.
REMUNERATION
Remuneration levels are set by the Board in accordance with industry standards to attract suitably qualified and
experienced Directors and senior executives. The Board obtains independent advice on the appropriateness of
remuneration packages.
AUDIT COMMITTEE
The Company is not of a size which justifies having a separate audit committee and matters typically dealt with by such a
committee are dealt with by the full Board of Directors.
ETHICAL STANDARDS
All Directors, Managers and employees are expected to act with the utmost of integrity and objectivity, striving at all
times to enhance the reputation and performance of the economic entity.
C O R P O R A T E G O V E R N A N C ES T A T E M E N T
In respect of the financial year ended 30 June 2000, the Directors of Redfire Resources Ltd submit the following report
made out in accordance with a resolution of the Directors:
DIRECTORS
The following persons held office as Directors of Redfire Resources Ltd at the date of this report:
JAMES A. WALL
Chairman, Non-Executive Director
Mr. Wall joined the Board in September 2000. He has a Bachelor of Engineering from the University of Western Australia
and has over 30 years experience in the mining industry including management of a number of base metal and coal mining
operations. He was managing director of Savage Resources Limited for six years when that company established the
Ernest Henry Copper Gold project and acquired large U.S. zinc operations in Tennessee that included three operating mines
and a zinc smelter. Mr. Wall is currently a non-executive director of Precious Metals of Australia Ltd, Emperor Mines
Limited and WRF Securities Limited. He is a Fellow of the Australasian Institute of Mining and Metallurgy.
ROBERT E BESLEY
Managing Director
Mr Besley, Managing Director of the Company since its inception in 1990, holds a Bachelor of Science with Honours in
geology from the University of Adelaide. He has more than 30 years experience in the minerals industry in Asia, the
Middle East, North and South America, Australia and the Pacific Rim. He spent 13 years with Union Oil Company, 7 of
these as manager of minerals for Australia and the Pacific which included a number of mineral sands projects. Mr Besley
was General Manager for Australmin Holdings and was responsible for developing that company’s mineral sands projects
in eastern Australia which included joint venture exploration with RZ Mines. He is a Fellow of the Australasian Institute
of Mining and Metallurgy.
PROFESSOR IAN R PLIMER
Non-Executive Director
Professor Plimer holds a Bachelor of Science with Honours degree from the University of New South Wales and a Doctor
of Philosophy from Macquarie University. He has been Professor of Geology at the School of Earth Sciences at the
University of Melbourne since 1992. He is an international expert on mineral deposits, has published over 100 scientific
papers and books and has consulted widely to mining companies and governments in many parts of the world. Professor
Plimer discovered the Milos epithermal gold deposit in Greece while conducting research for Nuigini Mining Limited.
RENE RIVKIN
Non-Executive Director
Mr Rivkin was elected to Membership of the Sydney Stock Exchange in 1970 and is regarded as one of Australia’s
leading market advisors and most successful investors.
15
D I R E C T O R S ’R E P O R T
16
PRINCIPAL ACTIVITY
The principal activity of the economic entity constituted by Redfire Resources Ltd and the entity it controlled during the
financial year consisted of mineral exploration and resource investment. In addition, the Company invested in the
technology company, Layer Nine Pty Ltd (formerly Orange Solutions Pty Ltd).
RESULTS OF OPERATIONS
The consolidated net loss after income tax for the economic entity for the financial year was $1,078,585 (1999: $419,527).
The economic entity’s policy is to write off acquisition and exploration costs considered by the Directors to be of no
value or associated with abandoned areas and to this extent an amount of $254,309 (1999: $111,833) was written off.
Expenditure totalling $1,448,882 (1999: $1,382,200) has been carried forward on other areas where exploration activities
are continuing.
DIVIDENDS
No dividend has been paid since the end of the previous financial year and no dividend is recommended for the current year.
REVIEW OF OPERATIONS
A detailed review of the economic entity’s operations is set out on pages 3 to 13 of this Annual Report.
SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
In the opinion of the Directors there were no significant changes in the state of affairs of the economic entity that
occurred during the financial year under review other than as detailed elsewhere in this report.
EVENTS SUBSEQUENT TO BALANCE DATE
There has not arisen in the interval between the end of the financial year and the date of this report any item, transaction or
event of a material and unusual nature, in the opinion of the Directors of the Company, that has significantly affected or may
significantly affect the operations of the economic entity, the results of those operations or the state of affairs of the
economic entity in subsequent financial years, except for those matters referred to in Note 5 to the financial statements.
D I R E C T O R S ’R E P O R T
DIRECTORS’ AND EXECUTIVES’ EMOLUMENTS
Remuneration levels are set by the Board in accordance with industry standards to attract suitably qualified and
experienced Directors and senior executives.
Executive Director of Redfire Resources LtdNAME CONSULTING FEES
$
Mr R E Besley 134,000
Non-executive Directors of Redfire Resources LtdNAME CONSULTING FEES
$
J.A. Wall, Chairman (appointed 5.9.2000) -
T M Clifton (resigned 24.8.2000) -
I R Plimer 42,300
R Rivkin -
There are no executives other than Mr R Besley.
INFORMATION ON DIRECTORS
DIRECTOR EXPERIENCE ORDINARY OPTIONS
SHARES HELD HELD
James A Wall Chairman, Non-Executive Director - 200,000 -
B.Eng.,FAIMM Appointed on 5 September 2000
Robert E. Besley Managing Director - 2,305,604 350,000
B.Sc. (Hons), MAIMM Appointed on 10 October 1989
Ian R Plimer Non-Executive Director 150,000 150,000
B.Sc. (Hons), PhD Appointed on 3 February 1998
Rene Rivkin Non-Executive Director
LLB Appointed on 4 September 1998 - -
The particulars of Directors’ interests in ordinary shares and options are as at the date of this report.
The 31 January 2001 listed options are exercisable at 20 cents.
LIKELY DEVELOPMENTS
Likely developments in the operations of the economic entity are included elsewhere in this Annual Report.
Disclosure of any further information has not been included in this report because, in the reasonable opinion of the
Directors, to do so would be likely to prejudice the business activities of the economic entity.
17
R E V I E W O FO P E R A T I O N S
18
OPTIONS OVER UNISSUED CAPITAL
The Company has on issue the following options over unissued capital:31 JANUARY 2001LISTED OPTIONS (i)
2000 1999
Balance on issue 1 July 1999 44,791,411 38,970,677
Issued during year - 5,840,000
Less exercised during year (1,846,003) (19,266)
Balance on issue at the date of this report 42,945,408 44,791,411
(i) Options are exercisable at 20 cents.
ENVIRONMENTAL REGULATIONS
The consolidated entity is subject to significant environmental regulation in respect to its exploration.
The Company aims to ensure the appropriate standard of environmental care is achieved, and in doing so, that it is aware
of and is in compliance with all environmental legislation. The Directors of the Company are not aware of any breach of
environmental legislation for the financial year under review.
OFFICERS’ INDEMNITIES AND INSURANCE
During the year the Company paid a premium to insure certain officers of the Company and related bodies corporate.
The officers of the Company covered by the insurance policy include the Directors named in this report.
The Directors’ and Officers’ Liability insurance provides cover against all costs and expenses that may be incurred in
defending civil or criminal proceedings that fall within the scope of the indemnity and that may be brought against the
officers in their capacity as officers of the Company or a related body corporate.
The insurance policy does not contain details of the premium paid in respect of individual officers of the Company.
Disclosure of the nature of the liability cover and the amount of the premium is subject to a confidentiality clause under
the insurance policy.
Neither the Company nor any of its related bodies corporate have provided any insurance for an auditor of the Company
or a related body corporate.
MEETINGS OF DIRECTORS
The number of meetings of the Company’s Directors held during the year ended 30 June 2000, and the number of
meetings attended by each Director were:BOARD OF DIRECTORS’ MEETINGS
DIRECTORS NUMBER HELD & ELIGIBLE TO ATTEND NUMBER ATTENDED
J A Wall (appointed 5.9.2000) 0 0
T M Clifton (resigned 24.8.2000) 8 7
R E Besley 8 8
I R Plimer 8 4
R Rivkin 8 2
DATED at Sydney this 29th day of September 2000. This report is made out in accordance with a resolution of Directors.
R E Besley
Director
D I R E C T O R S ’R E P O R T
CONSOLIDATED2000 1999
$ $
Operating loss before exploration expenditure written off 824,276 307,694
Exploration expenditure written off 254,309 111,833
Operating loss before income tax 1,078,585 419,527
Income tax attributable to operating loss - -
Operating loss after income tax 1,078,585 419,527
Accumulated losses at the beginning of the financial year 6,930,589 6,511,062
Accumulated losses at the end of the financial year 8,009,174 6,930,589
The accompanying notes form part of this concise financial report.
D I S C U S S I O N A N D A N A LY S I S O FC O N S O L I D AT E D P R O F I T A N D L O S S S TAT E M E N TF O R T H E Y E A R E N D E D 3 0 J U N E 2 0 0 0
The operating loss increased compared to the prior year due mainly to an increase in the amount of capitalised
exploration expenditure written off and corporate and administration expenditure spent in evaluating and managing the
Company’s search for an advanced minerals project with cash flow potential and diversification into technology
investment. The latter related to the review of several investment opportunities, culminating in the acquisition of an
interest in Layer Nine Pty Ltd (formerly called Orange Solutions Pty Ltd).
As a result of equity accounting, Redfire’s consolidated loss included a share of the operating loss of Layer Nine Pty Ltd
of $230,291.
19
P R O F I T A N D L O S S
F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 0 0
S T A T E M E N T
20
CONSOLIDATED2000 1999
$ $
CURRENT ASSETS
Cash 2,114,477 589,758
Receivables 18,273 3,487
Other 3,854 5,391
TOTAL CURRENT ASSETS 2,136,604 598,636
NON-CURRENT ASSETS
Investments - 40
Investments Accounted for using the Equity Method 769,799 -
Property, Plant and Equipment 35,146 33,646
Exploration and Evaluation 1,448,882 1,382,200
Other 66,260 120,560
TOTAL NON-CURRENT ASSETS 2,320,087 1,536,446
TOTAL ASSETS 4,456,691 2,135,082
CURRENT LIABILITIES
Creditors and Borrowings 28,815 69,564
Provisions 1,040 1,037
TOTAL CURRENT LIABILITIES 29,855 70,601
TOTAL LIABILITIES 29,855 70,601
NET ASSETS 4,426,836 2,064,481
SHAREHOLDERS’ EQUITY
Share Capital 11,364,681 7,478,188
Reserves 1,071,329 1,516,882
Accumulated Losses (8,009,174) (6,930,589)
TOTAL SHAREHOLDERS’ EQUITY 4,426,836 2,064,481
The accompanying notes form part of this concise financial report.
B A L A N C E
A S A T 3 0 J U N E 2 0 0 0
S H E E T
D I S C U S S I O N A N D A N A LY S I S O F C O N S O L I D AT E DB A L A N C E S H E E T A S AT 3 0 J U N E 2 0 0 0
ASSETS
The total asset position increased during the year by $2,321,609 represented mainly by an increase in cash of $1,524,719
and an increase in investments of $769,799. The investment relates to an interest in Layer Nine Pty Ltd, with an initial
cost of $1,000,000, detailed under Technology Investment on page 13. As a result of equity accounting, the carrying
value of the investment in Layer Nine was reduced by $230,201 reflecting a share of that company’s operating loss. In
relation to capitalised exploration, the Company expended $320,991 with $254,309 written off during the year.
LIABILITIES
Trade creditors decreased compared to the prior year reflecting timing of supplier payments.
EQUITY
Share capital increased during the year with the issue of new equity raising $3,508,970. This comprised a combination of
placements, conversion of partly paid shares, an entitlement issue and the conversion of listed options.
D I S C U S S I O N A N D A N A LY S I S O FC O N S O L I D AT E D S TAT E M E N T O F C A S H F L O W SF O R T H E Y E A R E N D E D 3 0 J U N E 2 0 0 0
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts comprised rental income and interest received. Operating expenses increased substantially over the prior year
due to the diversification strategy adopted by the Board, as discussed elsewhere in this report. The increased expenses
relate to evaluation of advanced mineral development opportunities with cash flow potential, assessment and analysis of a
number of technology investments and ongoing expenditure in relation to the management of the Company’s investment
in Layer Nine Pty Ltd.
CASH FLOWS FROM INVESTING ACTIVITIES
The major expenditure for the year was $1,000,000 for the acquisition of a 20% interest in Layer Nine Pty Ltd. This
investment is detailed under Technology Investment on page 13. In relation to exploration activity, $55,000 was received
through relinquishment of performance bonds held by the Mines Department and $339,642 was expended on
evaluation and ongoing field activities.
CASH FLOWS FROM FINANCING ACTIVITIES
The Company raised equity funds of $3,508,970.
21
22
CONSOLIDATED2000 1999
$ $
Cash flows from operating activities
Cash receipts in the course of operations 26,743 20,872
Cash payments in the course of operations (697,806) (398,343)
(671,063) (377,471)
Interest received 52,286 44,801
Net cash outflows from operating activities (618,777) (332,670)
Cash flows from investing activities
Payments for investments (1,000,000) -
Payments for property bonds (700) -
Payments for performance bonds - (30,000)
Proceeds from relinquishment of performance bonds 55,000 -
Payments for plant and equipment (15,602) (2,822)
Proceeds on sale of plant and equipment 3,500 -
Payments for exploration and evaluation (339,642) (373,669)
Net cash outflows from investing activities (1,297,444) (406,491)
Cash flows from financing activities
Proceeds from issue of shares and options 3,508,970 383,453
Fundraising costs (68,030) (5,000)
Net cash inflows from financing activities 3,440,940 378,453
Net increase/(decrease) in cash held 1,524,719 (360,708)
Cash at the beginning of the financial year 589,758 950,466
Cash at the end of the financial year 2,114,477 589,758
The accompanying notes form part of this concise financial report.
S T A T E M E N T O F
F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 0 0
C A S H F L O W S
This concise financial report relates to the consolidated entity consisting of Redfire Resources Limited and the entities it
controlled at the end of, or during, the year ended 30 June 2000. The accounting policies adopted are consistent with
those of the previous year.
NOTE 1. CHANGES IN ACCOUNTING POLICY
There were no changes in accounting policy for the year ended 30 June 2000.
NOTE 2. SEGMENT INFORMATION
The economic entity operates in the mineral exploration industry in Australia and the communications industry in
Australia. Of total assets of $4,456,691, $769,799 relates to the communications sector in relation to the investment in
Layer Nine Pty Ltd. Of the consolidated operating loss before income tax of $1,078,585, $230,201 relates to the
communications sector.
NOTE 3. DIVIDENDS
No dividends have been paid or declared since the commencement of the last financial year and no dividends have been
recommended by the Directors.
NOTE 4. EARNINGS/(LOSS) PER SHARE
2000 1999CENTS CENTS
(a) Basic loss per share (2 cents) (.9 cents)
2000 1999NUMBER NUMBER
Weighted average number of ordinary shares outstanding during
the year used in the calculation of basic loss per share 52,918,426 44,829,943
(b) Diluted earnings/(loss) per share
Diluted earnings/(loss) per share is the same as the basic earnings/(loss) per share as there are no potential ordinary
shares that are dilutive.
Information Concerning the Classification of Securities
Options granted are not considered to be potential ordinary shares and have not been included in the determination of
diluted earnings per share.
23
N O T E S T O A N D F O R M I N G P A R T O F T H E
F O R T H E P E R I O D E N D E D 3 0 J U N E 2 0 0 0
F I N A N C I A L R E P O R T
N O T E S T O A N D F O R M I N G P A R T O F T H E
F O R T H E P E R I O D E N D E D 3 0 J U N E 2 0 0 0
F I N A N C I A L R E P O R T
24
NOTE 5. EVENTS SUBSEQUENT TO BALANCE DATE
There has not arisen in the interval between the end of the financial year and the date of this report any item, transaction
or event of a material and unusual nature, in the opinion of the Directors of the Company, that has significantly affected
or may significantly affect the operations of the economic entity, the results of those operations or the state of affairs of
the economic entity in subsequent financial years except for the following:-
(a) Broken Hill
On 24 July 2000, Redfire announced the following:-
Consolidated Mining Lease 7 (CML 7)
Redfire Resources Ltd has reached agreement in principle to acquire CML 7 at Broken Hill from Normandy Mining
Investments Pty Ltd. CML 7 covers the central 3.8 kilometres of the Broken Hill zinc-silver-lead orebody.
Under the terms of the acquisition, payment will be staged with $500,000 in three payments to be completed on
receipt of approvals to recommence mining and a further two payments of $750,000 at 6 months and 12 months from
the date upon which those approvals are received by Redfire. Acquisition is subject to completion of a formal Sales
and Purchase Agreement, Ministerial approval and environmental clearances from the NSW Government to
Normandy Mining Investments Pty Ltd. Due diligence on environmental clearances is well advanced.
Pinnacle Mines Pty Ltd
Redfire has also reached agreement on principal terms to acquire Pinnacle Mines Pty Ltd whose assets includes
mining titles, the Pinnacle Mine, a processing plant and mining equipment. Subject to completion of a formal Sales
and Purchase Agreement, Redfire will acquire all the shares in Pinnacle Mines Pty Ltd for a payment of $1 million
in cash and $2.5 million in shares in Redfire. The cash consideration is payable in three installments consisting of
$500,000 on settlement and two further payments of $250,000 six months and twelve months after settlement.
In addition, Redfire will acquire the right to treat stockpiled ore located at the Pinnacle Mine. The stockpile
comprises sulphide ore, oxide ore, mixed oxide-sulphide ore, concentrate and tailings from Kintore Open Pit (CML
7), Block 14 Open Pit (CML 7), Brownes Shaft (CML 7) and North Broken Hill. The stockpile will be further
evaluated by Redfire with the potential to produce an early cash flow if treatment proves to be economic. Redfire
will make a royalty payment for stockpile ore treated.
NOTE 6. SALES REVENUE
There was no sales revenue during the year (1999: Nil).
NOTE 7. FULL FINANCIAL REPORT
Further financial information can be obtained from the full financial report which is available, free of charge, on request
from the Company. A copy may be requested by calling (02) 9221-1805.
The Directors declare that in their opinion, the concise financial report of the consolidated entity for the year ended 30
June 2000 as set out on pages 19 to 24 complies with Accounting Standard AASB 1039: Concise Financial Reports.
The financial statements and specific disclosures included in this concise financial report have been derived from the full
financial report for the year ended 30 June 2000.
The concise financial report cannot be expected to provide as full an understanding of the financial performance,
financial position and financing and investing activities of the consolidated entity as the full financial report, which as
indicated in note 7, is available on request.
This declaration is made in accordance with a resolution of the Directors.
R E Besley Sydney
Managing Director 29 September 2000
25
D I R E C T O R S ’D E C L A R A T I O N
26
SCOPE
We have audited the concise financial report of Redfire Resources Ltd (the Company) for the financial year ended 30
June 2000 as set out on pages 19 to 25 in order to express an opinion on it to the members of the Company. The
Company’s Directors are responsible for the concise financial report.
Our audit has been conducted in accordance with Australian Auditing Standards to provide reasonable assurance as to
whether the concise financial report is free of material misstatement. We have also performed an independent audit of the
full financial report of the Company for the financial year ended 30 June 2000. Our audit report on the full financial
report was signed on 29 September 2000, and was not subject to any qualification.
Our procedures in respect of the audit of the concise financial report included testing that the information included in it is
consistent with the full financial report, and examination, on a test basis, of evidence supporting the amounts, discussion
and analysis and other disclosures which were not directly derived from the full financial report. These procedures have
been undertaken to form an opinion as to whether the concise financial report complies with Accounting Standard AASB
1039: Concise Financial Reports in that, in all material respects, it is presented fairly in accordance with that standard.
The audit opinion expressed in this report has been formed on the above basis.
AUDIT OPINION
In our opinion, the concise financial report of the Company complies with Accounting Standard AASB 1039: Concise
Financial Reports.
PricewaterhouseCoopers
Chartered Accountants
John O’Connor Perth
Partner 29 September 2000
I N D E P E N D E N T A U D I T R E P O R T T O T H E M E M B E R S O FR E D F I R E R E S O U R C E S L T D
Pursuant to the Listing Requirements of Australian Stock Exchange Limited, the shareholder information set out below
was applicable as at 22 September 2000.
A. DISTRIBUTION OF EQUITY SECURITIES
Analysis of numbers of shareholders by size of holding:
DISTRIBUTION NUMBER OF NUMBER OF
SHAREHOLDERS OPTIONHOLDERS
1 - 1,000 346 775
1,001 - 5,000 419 298
5,001 - 10,000 255 60
10,001 - 100,000 513 142
100,001 and over 56 79
1,589 1,354
There were 781 and 1,081 holders of less than a marketable parcel of ordinary shares and options respectively.
B. SUBSTANTIAL SHAREHOLDERS
There are no substantial shareholders
C. TWENTY LARGEST SHAREHOLDERS
The twenty largest shareholders hold 30.03% of the total ordinary shares issued.
The names of the twenty largest holders of shares are listed below:
NUMBER OF PERCENTAGE OF
NAME ORDINARY SHARES HELD ISSUED SHARES %
Mr E and Mrs M Van Heemst 2,800,000 4.19
Mr Robert Ellis Besley 2,305,604 3.45
Mr I and Mrs H Gallash 2,106,189 3.15
Troyward Pty Limited 2,100,000 3.14
Kay Hian Pte Ltd 1,328,058 1.99
Nefco Nominees Pty Ltd 1,327,000 1.99
Nopilo Pty Limited 1,037,490 1.55
Mr R and Mrs A Kamp 1,001,700 1.50
NCH Investments Pty Ltd 800,976 1.20
Corcarr Nominees Pty Ltd 657,219 0.98
Novander Pty Limited 552,844 0.83
Olliver Geological Services 525,771 0.79
National Nominees Limited 509,531 0.76
Mr Desmond Craig Mackney 509,427 0.76
Todaytech Wholesale (Australia) Pty Ltd 450,000 0.67
Mr B and Ms S Benney 441,207 0.66
Royal Sunset Pty Ltd 433,233 0.65
DISC International 420,000 0.63
Calm Holdings Pty Ltd [Tide Fund A/C] 401,817 0.60
Mr J and Mrs L Horn 360,000 0.54
20,068,066 30.03
27
S H A R E H O L D E RI N F O R M A T I O N
28
D. TWENTY LARGEST OPTIONHOLDERS
The twenty largest optionholders hold 36.70% of the total listed options issued.
The names of the twenty largest holders of options are listed below:NUMBER OF PERCENTAGE OF
NAME OPTIONS HELD OPTIONS %
National Nominees Limited 2,770,781 6.45
Peco Pty Ltd 2,218,348 5.17
Mr Soo Moo Noon 1,701,839 3.96
Mr Derek Anthony Jellinek 995,000 2.32
ANZ Nominees Limited 886,748 2.06
Rojul Nominees Pty Ltd 650,000 1.51
Mineral Resource Consultants Pty Ltd 552,447 1.29
Mr John Joseph Martin 504,940 1.18
Bedel and Sowa Corp Pty Ltd 500,000 1.16
Mr J and Mrs J Bellamy 500,000 1.16
Mr Thomas Clive Richardson Davies 500,000 1.16
Mr Matthew Robert Harper 500,000 1.16
Mr B and Mrs A Lee 500,000 1.16
Mr Yuew Sun Quek 500,000 1.16
M & K Korkidas Pty Ltd [Superannuation A/C] 492,911 1.15
Mrs Deznie Leonie Baragwanath 450,000 1.05
Mr Desmond Craig Mackney 424,523 0.99
Westpac Custodian Nominees Limited 402,949 0.94
Mr Andrew Dayney 370,000 0.86
Mr Robert Ellis Besley 350,000 0.81
15,770,486 36.70
E. VOTING RIGHTS
For all shares, voting rights are one vote per member on a show of hands and one vote per share on a poll.
S H A R E H O L D E RI N F O R M A T I O N
PROJECT TENEMENT ECONOMIC ENTITY OPERATOR
INTEREST %
MINERAL SANDS EXPLORATION
Murray Basin, NSW 1 EL 100 Redfire Resources Ltd
2 ELAs 100 Redfire Resources Ltd
Murray Basin, SA 2 ELs 100 Redfire Resources Ltd
1 EL earning 80 Redfire Resources Ltd
BURRA COPPER
Burra, SA 2 ELs 100 diluting M.I.M. Exploration Pty Ltd
CURNAMONA GOLD - COPPER
Boolcoomata, SA 1 EL 100 Redfire Resources Ltd
GAWLER CRATON GOLD - COPPER
Verran, SA 1 EL 8 carried
Moonabie, SA 1 EL 100 diluting Helix Resources NL
ORANGE GOLD - COPPER
Orange, NSW 1 EL 50 Redfire Resources Ltd
OPAL EXPLORATION
Hebel, Qld 1 EPM 100 Redfire Resources Ltd
1 EPMA 100 Redfire Resources Ltd
1 ML 100 Redfire Resources Ltd
Ant Hill, SA 2 EL(O)s 100 Redfire Resources Ltd
Broken Bit Bore, SA 1 EL(O) 100 Redfire Resources Ltd
White Hill, SA 1 ELA(O) 100 Redfire Resources Ltd
Mount Willoughby, SA 1 ELA(O) 100 Redfire Resources Ltd
Cowan Ridge, SA 1 ELA(O) 100 Redfire Resources Ltd
Hanson Rise, SA 1 ELA(O) 100 Redfire Resources Ltd
OPAL CLAIMS
Camp Claim 1 C 100 Redfire Resources Ltd
C : Opal Claim EL (O) : Exploration Licence for OpalsEL : Exploration Licence EPM : Exploration Permit for MineralsELA : Exploration Licence Application EPMA : Exploration Permit for Minerals ApplicationELA(O) : Exploration Licence Application for Opals ML : Mining Lease
S U M M A R Y O F M I N I N G T E N E M E N T S
