Speciality Metals International Limited Annual Report 2020

Speciality Metals International Limited Annual Report 2020 21 Page | 21 DIRECTORS’ REPORT S IGNIFICANT C HANGES Significant changes in the state of affairs of the Group for the financial year were as follows: (a) Increase in contributed equity of $7,748,192 resulting from: Date Shares $ Placement of 112,733,514 shares at $0.018 per share under the Company’s Non-Renounceable Pro-Rata Entitlement Offer of one (1) new share for every five (5) shares held (refer ASX announcement dated 26 July 2019) 31-07-2019 112,733,514 2,029,204 Placement of 46,888,236 shortfall shares at $0.018 per share under the Company’s Non-Renounceable Pro-Rata Entitlement Offer of one (1) new share for every five (5) shares held (refer ASX announcement dated 26 July 2019) 02-08-2019 46,888,236 843,988 Issue of 25,000,000 shares at $0.0132 per share to Directors upon the satisfaction of the vesting conditions for the Performance Rights issued to Directors on 22 June 2018 (refer ASX announcement dated 2 August 2019) 02-08-2019 25,000,000 330,000 Issue of 2,500,000 shares at $0.018 per share to consultants for consulting services pursuant to the Mt Carbine Quarries Transaction. 27-12-2019 2,500,000 45,000 Placement of 125,000,000 shares at $0.036 per share to institutional and sophisticated investors undertaken pursuant to placement capacity under Listing Rule 7.1 (15% Rule) (refer ASX announcement dated 6 March 2020) 06-03-2020 125,000,000 4,500,000 Sub-Total 7,748,192 Share issue costs (376,154) TOTAL 7,372,038 (b) On 12 August 2019 the Company appointment two Non-executive Directors to the Board of Speciality Metals following the acquisition of Mt Carbine Quarries Pty Ltd namely Mr Oliver Kleinhempel and Mr Zhui Pei Yeo. Mr Roland Nice resigned as a Non-executive Director as part of the Board changes. (c) The Company raised $2,029,204 via the placement of 112,733,514 shares under the Company’s Non-Renounceable Pro-Rata Entitlement Offer of one (1) new share for every five (5) shares held. The offer was fully underwritten by Rymill Global Ventures Ltd with all unsubscribed shares being taken up in accordance with the underwriting agreement raising a further $843,988 via the issue of 46,888,236 shares. (d) The Company raised $4,500,000 (with oversubscriptions) via the placement of 125,000,000 fully paid ordinary shares at an issue price of $0.036 cents per share with the placement being undertaken pursuant to its placement capacity under Listing Rule 7.1 (15% Rule). Refer ASX announcement “Capital Raising Successfully Completed dated 6 March 2020. (e) Executive Chairman and Chief Executive Officer, Russell Krause, resigned from the Company on 24 April 2020. (f) On 13 May 2020 the Company announced the following leadership appointments: - Kim Cavallaro appointed as Chief Commercial Officer and subsequently taking the role as Chief Executive Officer and Managing Director. Ms Cavallaro commenced with the Company on 1 July 2020; - Kevin MacNeill appointed as Interim-CEO and Senior Technical Advisor, commencing immediately, with a senior technical advisory role post CEO hand-over; and - Oliver Kleinhempel appointed to the role of Non-executive Chairman for a transitional period. (g) ~$4 Million Purchase Order (including GST) awarded to the Company’s wholly owned subsidiary Mt Carbine Quarrying Operations Pty Ltd for the supply of various quarry materials for a road construction project located within the Cook Shire in Far North Queensland (refer ASX Announcement “$4 Million Contract Enhances Order Intake – Mt Carbine” dated 1 July 2020). (h) First concentrate shipment despatched from the Mt Carbine Tailings Retreatment Project during June 2020.