Annual Report 2005 - Pioneer Resources Limited

PIONEER NICKEL LIMITED AND ITS CONTROLLED ENTITYPioneer Nickel LimitedDiscussion and AnalysisAs at 30 June 2005 the following unlisted options are outstanding:Number of Options Exercise Price Expiry Date3,500,000 (i) 25 cents each 31 December 20072,200,000 (ii) 25 cents each 31 December 2007250,000 (iii) 25 cents each 31 December 2007100,000 (iv) 25 cents each 31 December 20073,750,000 (v) 25 cents each 28 November 2009(i) Unlisted options issued to Heron Resources Limited.(ii) Unlisted options have a 24 month vesting period prior to exercise which canoccur after 14 October 2005.(iii) Unlisted options have a 24 month vesting period prior to exercise which canoccur after 31 March 2006.(iv) Unlisted options have a 24 month vesting period prior to exercise which canoccur after 31 August 2006.(v) Issued to a wholly owned controlled entity of Jubilee Mines NL.STATEMENT OF CASH FLOWSCash Flows From Operating ActivitiesThe net cash outflows from operating activities of $528,296comprised interest earned on cash reserves offset by operatingoutflows in relation to the Company’s full year of operatingactivities since its listing in December 2003.Cash Flows From Investing ActivitiesExploration and evaluation cash flows of $1,689,675 relatedprimarily to exploration programs at the Wattle Dam, PioneerDome and Acra Projects.Payments for investments of $200,000 related to an investment inGalaxy Resources Limited.Cash Flows from Financing ActivitiesDuring the year the Company raised cash proceeds of $611,643following the placement of 4,077,623 ordinary shares at an issueprice of 15 cents each to a wholly owed controlled entity of JubileeMines NL.Pioneer Nickel Annual Report 200538