LACONIA RESOURCES LIMITED ABN INTERIM FINANCIAL REPORT FOR THE HALF YEAR ENDED 31 DECEMBER 2014

Transcription

1 ABN INTERIM FINANCIAL REPORT FOR THE HALF YEAR ENDED 31 DECEMBER

2 This interim financial report does not include all the notes of the type normally included in an annual financial report. This report is to be read in conjunction with the Annual Report for the year ended 30 June and any public announcements made by Laconia Resources Limited during the interim reporting period in accordance with the continuous disclosure requirements of the Corporations Act

3 CONTENTS CORPORATE DIRECTORY... 4 DIRECTORS REPORT... 5 AUDITOR S INDEPENDENCE DECLARATION... 7 STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME... 8 STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER... 9 STATEMENT OF CHANGES IN EQUITY FOR THE HALF-YEAR ENDED 31 DECEMBER STATEMENT OF CASH FLOWS FOR THE HALF-YEAR ENDED 31 DECEMBER NOTES TO THE FINANCIAL STATEMENTS DIRECTORS DECLARATION INDEPENDENT AUDITOR S REVIEW REPORT

4 CORPORATE DIRECTORY ABN Directors Matthew Howison (Non-Executive Chairman) Ian Stuart (Managing Director) Matthew Edmondson (Non-Executive Director) Company Secretary Matthew Edmondson Registered Office Suite 2, Level 1, 47 Havelock Street West Perth WA 6005 PO Box 1151 West Perth WA 6872 Internet Web: Principal Place of Business Peruvian Office Suite 2, Level 1, 47 Havelock Street Calle Bolivar 472 West Perth WA 6005 Miraflores, Lima 18, PERÚ Telephone: Telephone: Facsimile: Solicitors Peruvian Solicitor Steinepreis Paganin Estudio Muñiz Level 4, The Read Buildings, 16 Milligan Street 6th Floor, Las Begonias 475 Perth WA 6000 San Isidro Lima 27 Peru Telephone: Telephone: Facsimile: Facsimile: Share Register Security Transfer Registrars Pty Ltd 770 Canning Highway APPLECROSS WA 6153 Auditors Peruvian Auditor Rothsay Chartered Accountants Grant Thornton Peru Level 1, Lincoln House 8th Floor, Towers of San Isidro 4 Ventnor Avenue Av. República de Panamá 3030 West Perth WA 6005 Lima 27, Peru Telephone: Telephone: Facsimile: Securities Exchange Listing Laconia Resources Limited securities are listed on the Australian Securities Exchange (ASX code: LCR, LCROA). 4

5 31 DECEMBER DIRECTORS REPORT Your directors are pleased to present their report on Laconia Resources Limited for the half-year ended 31. DIRECTORS The names of the directors who held office during or since the end of the half year are: Matthew Howison Ian Stuart Matthew Edmondson Non-Executive Chairman Managing Director Non-Executive Director RESULT The Company recorded a loss for the half-year ended 31 of 925,572 compared to a loss of 1,382,759 for the corresponding period in the prior year. PRINCIPAL ACTIVITIES The principal activities for the Group during the period were the exploration of its Kimsa Orcco Project in Peru. The Company continues to pursue the maximisation of its Peruvian and Western Australian mining property investments together with seeking complimentary projects for the ultimate benefit of shareholders. COMMERCIAL ACTIVITIES Pro Rata Entitlements Rights Issue In August, the Company announced it had closed its pro-rata entitlements rights issue to shareholders which raised 234,553 through the issue of 46,910,568 ordinary shares, each with one free attaching 6 cent option expiring on 30 September REVIEW OF PROJECTS Kimsa Orcco Project, Peru (4 Patacancha Permits 100% Laconia, 11 Huaco Cucho permits subject to 80% earn in option 1 ) During the June Quarter,, Laconia was granted permission to drill (Ordene Initio) from the Peruvian regulator the Ministry of Energy and Mines (MINEM) by Directoral Resolution Nº MEM/DGM. 2 In the quarter, the Company received notification of an administrative appeal lodged against its Kimsa Orcco drilling approval. The matter was heard before the Mining Council (Consejo de Minera), part of the Ministry of Mines. Further to this hearing on 25 November Laconia has received resolution, No 619--MEM/CM from the Peruvian regulator the Ministry of Energy and Mines (MINEM), Consejo de Minera, declaring the administrative appeal against Laconia s Kimsa Orcco drilling permitting is unfounded. 3 1 See ASX release dated 26 March option to earn 80% indirect interest 2 Refer ASX Release 24 April 3 Refer ASX Releases 19 November, 23 5

6 31 DECEMBER DIRECTORS REPORT (continued) Resolution No 619--MEM/CM confirms that approval for Laconia s Declaration de Impacto Ambiental (DIA) (Environmental Impact Statement), Directorial Resolution, No 003--MEM-DGAA 4 and its Ordene Initio (Permission to Drill), Directorial Resolution No MEM/DGM 5 are valid. Field exploration activities have been modest and low impact during the period due to a lack of funds available for exploration in line with limited funds for exploration in the capital markets for exploration during the period Goldsworthy, Pilbara, Western Australia E45/3904 (Laconia 100% Laconia) During the Quarter, the Company received notice that Independence Group NL (Independence) decided to leave the earn-in arrangement. In addition to the work undertaken by Independence, limited was undertaken by the Company during the period. 701 Mile, Northern Gascoyne, Western Australia (E52/ % Laconia: mineral rights excluding manganese and iron and 70% Laconia: manganese and iron rights) Limited work was undertaken during the period. AUDITOR S INDEPENDENCE DECLARATION Section 307C of the Corporations Act 2001 requires our auditors, Rothsay Chartered Accountant, to provide the directors of the company with an Independence Declaration in relation to the review of the interim financial report. This Independence Declaration is set out on page 7 and forms part of this directors report for the half-year ended 31. This report is signed in accordance with a resolution of the Board of Directors made pursuant to s.306 (3) of the Corporations Act Ian Stuart Managing Director Perth, 13 March Refer ASX Release 29 January 5 Refer ASX Release 24 April 6

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8 31 DECEMBER STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE HALF-YEAR ENDED 31 DECEMBER Note 2013 REVENUE 2 28,190 87,520 EXPENDITURE Administration expenses (366,205) (497,240) Depreciation expense (9,609) (43,087) Exploration expenses (514,262) (346,720) Salaries and employee benefits expense (49,407) (171,967) Loss on sale of assets - (333,666) Other expense (14,279) (77,599) LOSS BEFORE INCOME TAX (953,762) (1,470,279) Income tax benefit / (expense) - - TOTAL COMPREHENSIVE LOSS FOR THE PERIOD ATTRIBUTABLE TO MEMBERS OF LACONIA RESOURCES LIMITED (925,572) (1,382,759) Basic and diluted loss per share (cents) (0.05) (0.04) The above statement of comprehensive income should be read in conjunction with the accompanying notes. 8

9 31 DECEMBER STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER June CURRENT ASSETS Cash and cash equivalents 33, ,699 Trade and other receivables 284, ,535 TOTAL CURRENT ASSETS 317, ,234 NON-CURRENT ASSETS Plant and equipment 78,813 92,016 Mining properties 5,230,687 5,444,877 Assets held for resale 89,211 82,777 TOTAL NON-CURRENT ASSSETS 5,398,711 5,619,670 TOTAL ASSETS 5,716,337 6,055,904 CURRENT LIABILITIES Trade and other payables 5 309, ,411 TOTAL CURRENT LIABILITIES 309, ,411 TOTAL LIABILITIES 309, ,411 NET ASSETS 5,406,650 5,880,493 EQUITY Issued capital 16,321,374 16,086,820 Reserves 2,256,542 2,039,367 Accumulated losses (13,171,266) (12,245,694) TOTAL EQUITY 5,406,650 5,880,493 The above statement of financial position should be read in conjunction with the accompanying notes. 9

10 31 DECEMBER STATEMENT OF CHANGES IN EQUITY FOR THE HALF-YEAR ENDED 31 DECEMBER Contributed Equity Convertible Note Share-based Payments Reserve Options Reserves Foreign Exchange Reserves Accumulated Losses Total BALANCE AT 1 JULY ,686, ,090 1,258, ,000 - (10,276,601) 5,767,802 Loss for the period (1,382,759) (1,382,759) TOTAL COMPREHENSIVE LOSS (1,382,759) (1,382,759) TRANSACTIONS WITH OWNERS IN THEIR CAPACITY AS OWNERS Options issued during the period , ,793 Shares issued during the period 842, ,026 Convertible note converted to shares 738,151 (649,090) ,061 Foreign exchange movement , ,448 BALANCE AT 31 DECEMBER ,266,664-1,258, , ,448 (11,659,360) 5,528,371 BALANCE AT 1 JULY 16,086,820-1,371, , ,449 (12,245,694) 5,880,493 Loss for the period (925,572) (925,572) TOTAL COMPREHENSIVE LOSS (925,572) (925,572) TRANSACTIONS WITH OWNERS IN THEIR CAPACITY AS OWNERS Options issued during the period Shares issued during the period 234, ,554 Foreign exchange movement , ,175 BALANCE AT 31 DECEMBER 16,321,374-1,371, , ,624 (13,171,266) 5,406,650 The above statement of changes in equity should be read in conjunction with the accompanying notes. 10

11 31 DECEMBER STATEMENT OF CASH FLOWS FOR THE HALF-YEAR ENDED 31 DECEMBER 2013 CASH FLOWS FROM OPERATING ACTIVITIES Expenditure on mining interests (100,016) (593,592) Payments to suppliers and employees (317,670) (585,901) Interest received 385 2,960 Net cash outflow from operating activities (417,301) (1,176,533) CASH FLOWS FROM INVESTING ACTIVITIES Sale of mining assets 27, ,230 Sale of other assets - 26,250 Payment for plant and equipment - (3,524) Net cash outflow from investing activities 27, ,956 CASH FLOWS FROM FINANCING ACTIVITIES Issued capital 234, ,819 Net cash outflow from investing activities 234, ,819 Net (decrease)/increase in cash and cash equivalents (155,168) (20,758) Cash and cash equivalents at the beginning of the half-year 188, ,092 CASH AND CASH EQUIVALENTS AT THE END OF THE HALF-YEAR 33, ,334 The above statement of cash flows should be read in conjunction with the accompanying notes. 11

12 31 DECEMBER NOTES TO THE FINANCIAL STATEMENTS NOTE 1: BASIS OF PREPARATION OF THE HALF-YEAR FINANCIAL REPORT This condensed consolidated interim financial report for the half-year reporting period ended 31 has been prepared in accordance with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Act This condensed consolidated interim financial report does not include all the notes of the type normally included in an annual financial report. Accordingly, this report is to be read in conjunction with the annual report for the year ended 30 June and any public announcements made by Laconia Resources Limited during the interim reporting period in accordance with the continuous disclosure requirements of the Corporations Act The accounting policies adopted are consistent with those of the previous financial year and corresponding interim reporting period. Going Concern The Company incurred a loss of 925,572 for the six month period ended 31 and does not have a strong working capital position. The Company s ability to continue as a going concern and meet its debts and future commitments as and when they fall due is dependent on a number of factors, including (but not limited to): the ability to issue additional capital under the Corporations Act 2001, if required, by share purchase plan, share placement or rights issue; the option of farming out all or part of the consolidated entity s exploration projects; and the ability, if required to dispose of interest in exploration and development assets. The half year financial report has been prepared on a going concern basis. In arriving at this position the Directors have had regard to the fact that the Company has, or in the Directors opinion, will have access to, sufficient cash to fund administrative and other committed expenditure for a period of not less than 12 months from the date of this report. Should the Company not achieve the matters set out above, there is significant uncertainty whether it will be able to continue as a going concern and therefore whether it will be able to pay its debts as and when they fall due and realise its assets and extinguish its liabilities in the normal course of business and at the amounts stated in the half-year financial report. 12

13 31 DECEMBER NOTES TO THE FINANCIAL STATEMENTS (continued) NOTE 1: BASIS OF PREPARATION OF THE HALF-YEAR FINANCIAL REPORT Adoption of new and revised Accounting Standards In the half-year ended 31, the Company has reviewed all of the new and revised Standards and Interpretations issued by the AASB that are relevant to its operations and effective for annual reporting periods beginning on or after 1 July. It has been determined by the Company that there is no impact, material or otherwise, of the new and revised Standards and Interpretations on its business and, therefore, no change is necessary to Company accounting policies. The Company has also reviewed all new Standards and Interpretations that have been issued but are not yet effective for the half-year ended 31. As a result of this review the Directors have determined that there is no impact, material or otherwise, of the new and revised Standards and Interpretations on its business and, therefore, no change necessary to Company accounting policies. NOTE 2: REVENUE Half-Year Consolidated 2013 From continuing operations Interest revenue 355 2,690 Other revenue 27,835 84,830 Total revenue 28,190 87,520 NOTE 3: SEGMENT INFORMATION Management has determined the operating segments based on the reports reviewed by the Board of Directors that are used to make strategic decisions. For management purposes, the Group has identified two reportable segments being exploration activities undertaken in Australia and Peru. These segments include the activities associated with the determination and assessment of the existence of commercial economic reserves, from the Group s mineral assets in these geographic locations. Primary Reporting geographical segments The geographical segments of the consolidated entity are as follows: 13

14 31 DECEMBER NOTES TO THE FINANCIAL STATEMENTS (continued) NOTE 3: SEGMENT INFORMATION Revenue by geographical region Revenue attributable to the Group disclosed below, based on where the revenue is generated from: 2013 Australia 11,135 13,089 South America 17,055 74,431 Total revenue 28,190 87,520 Segment results by geographical region Australia 381, ,509 South America 544, ,250 Net loss before tax 925,572 1,382,759 Assets by geographical region The location of segment assets by geographical location of the assets is disclosed below: June Australia 4,739,094 4,883,613 South America 977,243 1,172,291 Total assets 5,716,337 6,055,904 Liabilities by geographical region The location of segment liabilities by geographical location of the assets is disclosed below: June Australia 309, ,245 South America - 63,166 Total liabilities 309, ,411 14

15 31 DECEMBER NOTES TO THE FINANCIAL STATEMENTS (continued) NOTE 4: ISSUED CAPITAL Shares June Shares June Issues of ordinary shares during the half-year Issued for cash 46,910, , ,585,200 2,534,003 Issued as consideration for corporate advisory fees - - Convertible note conversion - - 7,381,506 - Share issue cost (133,670) 46,910, , ,966,706 2,400,333 Number of options June Movements of options during the half-year Options lapsed during the year (26,500,000) - Issued during the year 46,910, ,377,849 20,410, ,377,849 NOTE 5: TRADE AND OTHER PAYABLES Half-Year Consolidated June Trade creditors 71, ,679 Director s fees payable 99,453 27,472 Other payables and accruals 138,585 35,260 Total 309, ,411 Directors emoluments totalling 135,423 comprising Director s fees payable and accruals are not due and payable until trade creditors and other accruals have been settled. NOTE 6: CONTINGENCIES Musketeer Mining Limited (MML) has entered into a binding terms sheet with International Goldfields Limited for (ASX:IGS) to aquire 100% of the issued capital of MML. The terms of the acquisition are subject to shareholder approval. If MML is acquired by IGS, MML will pay the Company a cash payment of 75,000 on or before 31 March 2015 and another cash payment of 125,000 on or before 31 October Apart from the above there has been no change in contingent liabilities or contingent assets since the last annual reporting date. 15

16 31 DECEMBER NOTES TO THE FINANCIAL STATEMENTS (continued) NOTE 7: SUBSEQUENT EVENTS No other matter or circumstance has arisen since 31, which has significantly affected, or may significantly affect the operations of the Company, the result of those operations, or the state of affairs of the Company in subsequent financial years. 16

17 DIRECTORS DECLARATION In the directors opinion: LACONIA RESOURCES LIMITED 31 DECEMBER 1. the financial statements and notes set out on pages 8 to 16 are in accordance with the Corporations Act 2001, including: (a) (b) complying with Accounting Standards, the Corporations Regulations 2001 and other mandatory professional reporting requirements; and giving a true and fair view of the company s financial position as at 31 and of its performance for the half-year ended on that date; and 2. there are reasonable grounds to believe that Laconia Resources Limited will be able to pay its debts as and when they become due and payable. This declaration is made in accordance with a resolution of the directors. Ian Stuart Managing Director Perth, 13 March

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