ANNUAL REPORT 2006

3. PRINCIPAL ACTIVITIES
The principal activities of the Consolidated Entity
during the financial year were platinum and palladium
exploration and development.
4. FINANCIAL RESULTS
The operating loss after income tax and minority interest
of the Consolidated Entity for the financial year ended 30
June 2006 totalled $5,002,251 (2005: $3,186,373).
9. REMUNERATION REPORT
The remuneration report is set out under the following
main headings:
A
B
C
D
Principles used to determine the nature and
amount of remuneration
Details of remuneration
Service agreements
Share-based compensation
A N N U A L R E P O R T 2 0 0 6
5. DIVIDENDS
The Directors do not recommend the payment of a
dividend and no amount has been paid or declared by
way of dividend since the end of the previous financial
year and to the date of this report.
6. REVIEW OF OPERATIONS
The Company's main operations are platinum-palladium
exploration and development in Southern Africa and
Australia. Please refer to the Review of Company
Activities Report immediately preceding this Directors'
Report for details of the Company's activities.
7. LIKELY DEVELOPMENTS
The Consolidated Entity intends to continue platinum
and palladium exploration and development.
At this date, subject to current activities, there are no
likely developments in the operations of the Consolidated
Entity which could be expected to affect the results of
the Consolidated Entity in subsequent years.
8. STATE OF AFFAIRS
There were no significant changes in the state of affairs
of the Consolidated Entity during the financial year not
otherwise dealt with in this report.
A Principles used to determine the nature
and amount of remuneration
The Remuneration Committee, on behalf of the Board
of Directors, monitors compensation of Directors and
executives of the Company.
Generally, compensation is provided by the Company
to its Directors and executives, by way of base salary,
granting of employee options and superannuation.
The overall objective is to ensure that remuneration is
fair and reasonable and sufficient to attract and retain
qualified and experienced Directors and executives.
The remuneration program for the Directors and
executives of the Company is designed to ensure that
the level and form of remuneration achieves certain
objectives, including:
(a) attracting and retaining talented, qualified and
effective Directors and executives;
(b) motivating their short and long-term performance;
and
(c) aligning their interests with those of the Company's
shareholders.
Given the evolving nature of the Company’s business,
the Remuneration Committee continues to review and
redesign the overall compensation plan for Directors
and executives so as to continue to address the
objectives identified above.
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