Speciality Metals International Limited Annual Report 2020

30 Speciality Metals International Limited Annual Report 2020 Directors’ Report continued Page | 30 DIRECTORS’ REPORT A.M. Wing There was an agreement dated 22 January 2019 between the Company and Mr Wing whereby Mr Wing agrees to provide company secretarial services to the Company. The Company or Mr Wing may terminate the contract by giving one month’s written notice. Cash payments and benefits totalling $54,000 were paid to Mr Wing during the 2020 financial year. The payments were made through Northern Star Nominees Pty Ltd, a company in which Mr Wing has a substantial interest. Mr Wing resigned as Company Secretary as of 1 September 2020. C.P. Godfrey There was a written employment agreement with Mr Godfrey dated 9 November 2019 in his role as a Chief Operating Officer of the Company. Cash payments, super and benefits totalling $231,931 were paid to Mr Godfrey during the 2020 financial year. Mr Godfrey ceased employment with the Company on 31 July 2020. K.B. MacNeill There is a written agreement with Mr MacNeill dated 5 May 2020 in his role as an Interim Chief Executive Officer and Senior Technical Advisor of the Company. Cash payments and benefits totalling $24,000 were paid to Mr MacNeill during the 2020 financial year. The payments were made through Specialised Metallurgical Projects (Pty) Limited, a company in which Mr MacNeill has a substantial interest. Mr MacNeill’s contract will continue the earlier of one (1) year from its commencement or until a subsequent engagement agreement is entered into, with the ability to extend the term on a yearly basis. K. Cavallaro There is a written executive employment agreement with Ms Cavallaro dated 8 May 2020 for the role of Chief Commercial Officer and Chief Executive Officer Designate. No cash payments nor benefits were paid to Ms Cavallaro during the 2020 financial year due to Ms Cavallaro commencing employment on 1 July 2020. The Company or Ms Cavallaro may terminate the contract by giving three (3) months’ written notice. (i) Speciality Metals’ Financial Performance Speciality Metals’ financial performance for the five years to 30 June 2020 is summarised below and the relationship between results and performance is discussed. Year ended Measure 2020 2019 2018 2017 2016 Net profit / (loss) after tax $ (3,015,680) 3,808,863 (1,478,746) (9,888,710) (2,101,010) Net assets $ 14,936,296 10,905,040 2,672,436 2,371,501 10,744,570 Cash and cash equivalents $ 2,989,859 217,962 602,675 1,048,000 761,413 Cash flows from operating activities $ (2,948,321) (1,627,127) (1,368,767) (916,448) (1,023,157) EBITDAX $ (2,789,350) 3,847,034 (1,022,747) (865,010) (943,493) Share price at 30 June $ $0.028 $0.031 $0.019 $0.010 $0.030 Basic earnings / (loss) per share Cents (0.30) 0.67 (0.29) (2.27) (0.56)