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Alkane Resources Interim / Quarterly Report 2016

Jan 29, 2017

48579_rns_2017-01-29_969d2138-4d9e-4052-ae6e-41c45b7f905b.pdf

Interim / Quarterly Report

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Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

+Rule 5.5

Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

Introduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10, 01/05/13, 01/09/16

Name of entity

ALKANE RESOURCES LTD

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ABN

Quarter ended (“current quarter”)

35 000 689 216 35 000 689 216 31 December 2016
Consolidated statement of cash flows Current quarter Year to date
$A’000 (6 months)
$A’000
1. Cash flows from operating activities
1.1 Receipts from customers 20,859 37,132
1.2 Payments for
(a) exploration & evaluation (2,864) (4,810)
(b) development (9,562) (18,542)
(c) production (6,448) (18,643)
(d) staff costs(administration and corporate) (680) (1,408)
(e) administration and corporate costs (951) (1,957)
1.3 Dividends received (see note 3) - -
1.4 Interest received 119 216
1.5 Interest and other costs of finance paid (164) (267)
1.6 Income taxes paid - -
1.7 Research and development refunds - -
1.8 Other(includes minerals royalties) (525) (1,373)
1.9 Net cash from / (used in) operating
activities
(216) (9,652)
2. Cash flows from investing activities
2.1 Payments to acquire:
(a) property, plant and equipment (414) (998)
(b) tenements (see item 10) - (75)
(c) investments - -
(d) other non-current assets - -
  • See chapter 19 for defined terms 1 September 2016

Page 1

Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

Consolidated statement of cash flows Consolidated statement of cash flows Current quarter Year to date
$A’000 (6 months)
$A’000
2.2 Proceeds from the disposal of:
(a) property, plant and equipment 4 17
(b) tenements (see item 10) - -
(c) investments - -
(d) other non-current assets - -
2.3 Cash flows from loans to other entities - -
2.4 Dividends received (see note 3) - -
2.5 Other (provide details if material) (10) (10)
2.6 Net cash from / (used in) investing
activities
(420) (1,066)
3. Cash flows from financing activities
3.1 Proceeds from issues of shares - 4,141
3.2 Proceeds from issue of convertible notes - -
3.3 Proceeds from exercise of share options - -
3.4 Transaction costs related to issues of (2) (670)
shares, convertible notes or options
3.5 Proceeds from borrowings 912 7,912
3.6 Repayment of borrowings (2,381) (4,403)
3.7 Transaction costs related to loans and - (280)
borrowings
3.8 Dividends paid - -
3.9 Other (provide details if material) - -
3.10 Net cash from / (used in) financing
activities
(1,471) 6,700
4. Net increase / (decrease) in cash and
cash equivalents for the period
4.1 Cash and cash equivalents at beginning of
period 22,544 24,455
4.2 Net cash from / (used in) operating (216) (9,652)
activities (item 1.9 above)
4.3 Net cash from / (used in) investing activities (420) (1,066)
(item 2.6 above)
4.4 Net cash from / (used in) financing activities (1,471) 6,700
(item 3.10 above)
4.5 Effect of movement in exchange rates on - -
cash held
4.6 Cash and cash equivalents at end of
period
20,437 20,437
  • See chapter 19 for defined terms 1 September 2016

Page 2

Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

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5. Reconciliation of cash and cash Current quarter Previous quarter
equivalents $A’000 $A’000
at the end of the quarter (as shown in the
consolidated statement of cash flows) to the
related items in the accounts
5.1 Bank balances 5,817 6,495
5.2 Call deposits 5,000 5,000
5.3 Bank overdrafts - -
5.4 Other (31 day notice deposit) 9,620 11,049
5.5 Cash and cash equivalents at end of
20,437 22,544
quarter (should equal item 4.6 above)
6. Payments to directors of the entity and their associates Current quarter
$A'000
6.1 Aggregate amount of payments to these parties included in item 1.2 $177
6.2 Aggregate amount of cash flow from loans to these parties included -
in item 2.3
6.3 Include below any explanation necessary to understand the transactions included in
items 6.1 and 6.2
Payments to directors and/or companies associated with directors for: $A’000
- Directors fees/corporate consulting fees $ 78
- Executive director salary and superannuation $ 99
7. Payments to related entities of the entity and their Current quarter
associates $A'000
7.1 Aggregate amount of payments to these parties included in item 1.2 $62
7.2 Aggregate amount of cash flow from loans to these parties included -
in item 2.3
7.3 Include below any explanation necessary to understand the transactions included in
items 7.1 and 7.2
Payments to related entities of the entity and their associates $A’000
- Administration/accounting and company secretarial fees $ 53
- IT consulting fees and services $ 9
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  • See chapter 19 for defined terms 1 September 2016

Page 3

Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

8. Financing facilities available Total facility amount Amount drawn at
Add notes as necessary for an at quarter end quarter end
understanding of the position $A’000 $A’000
8.1 Loan facilities 8,053 3,000
8.2 Credit standby arrangements
8.3 Other (please specify) 547 547
  • 8.4 Include below a description of each facility above, including the lender, interest rate and whether it is secured or unsecured. If any additional facilities have been entered into or are proposed to be entered into after quarter end, include details of those facilities as well.

Loan facility details

  • Lender – Macquarie Bank Limited

  • Project Loan Facility of $3.0M fully drawn at balance date, interest rate 6.22%.

  • Performance bond facility of $5.1M was not drawn at balance date. Drawdown of the full facility was made in January.

  • Both facilities are secured over all of the assets of subsidiary Tomingley Gold Operations Pty Ltd and supported by a guarantee provided by Alkane Resources Ltd.

Other

  • Consists of the unamortised balance of a Group insurance premium funding facility
9. Estimated cash outflows for next quarter $A’000
9.1 Exploration and evaluation 3,500
9.2 Development 7,300
9.3 Production 19,000
9.4 Staff costs(administration and corporate) 700
9.5 Administration and corporate costs 900
9.6 Other(mineral royalties, property plant and equipment,
repayment of borrowings)
1,500
9.7 Total estimated cash outflows 32,900
10. Changes in Tenement Nature of interest Interest at Interest
tenements reference beginning at end of
(items 2.1(b) and and of quarter quarter
2.2(b) above) location
10.1 Interests in mining
tenements and
petroleum tenements
lapsed, relinquished
or reduced
10.2 Interests in mining Elsienora,
tenements and NSW
petroleum tenements
acquired or increased
ELA 5364
Rockley
Application 0% 100%
NSW
ELA 5403 Application 0% 100%
  • See chapter 19 for defined terms 1 September 2016

Page 4

Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

Compliance statement

  • 1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.

  • 2 This statement gives a true and fair view of the matters disclosed.

Sign here: ........[ signed] ............................. Date: 30/01/2017 ( ~~Director/~~ Company secretary)

Print name: Karen E V Brown

Notes

  1. The quarterly report provides a basis for informing the market how the entity’s activities have been financed for the past quarter and the effect on its cash position. An entity that wishes to disclose additional information is encouraged to do so, in a note or notes included in or attached to this report.

  2. If this quarterly report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report. If this quarterly report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standards apply to this report.

  3. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.

  4. See chapter 19 for defined terms 1 September 2016

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Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

ITEM 6.1 & 6.2 Schedule of mining tenements –as at 31 December 2016

Project/Location Tenement Interest Nature of interest
Peak Hill, NSW GL 5884 (Act 1904) 100% Equity
ML 6036 100% Equity
ML 6042 100% Equity
ML 6277 100% Equity
ML 6310 100% Equity
ML 6389 100% Equity
ML 6406 100% Equity
ML 1351 100% Equity
ML 1364 100% Equity
ML 1479 100% Equity
EL 6319 100% Equity
Dubbo, NSW EL 5548 100% Equity through subsidiary
EL 7631 100% Equity through subsidiary
ML 1724 100% Equitythrough subsidiary
Wellington, NSW EL 6320 100% Equity
Tomingley, NSW EL 5675 100% Equity
EL 5830 100% Equity
EL 5942 100% Equity
EL 6085 100% Equity
ML 1684 100% Equitythrough subsidiary
Cudal, NSW EL 7020 100% Equity
EL 8340 100% Equity
Bodangora, NSW EL 4022 100% Equity
EL 6209 100% Equity (subject to royaltyof 2% net smelter return)
Finns Crossing, NSW EL 8261 100% Equity
Rockley, NSW EL 8170 100% Equity
EL 8194 100% Equity
ELA 5403 100% Application
Elsienora, NSW EL 6082 100% Equity
EL 6767 100% Equity
ELA 5364 100% Application
Orange East, NSW EL 8442 0% Right to earn 60% to 80%
Nullagine, WA EL 46/522-I 0% 60% retained interest in diamond potential
EL 46/523-I 0% 60% retained interest in diamond potential
EL 46/524 0% 60% retained interest in diamondpotential
Miranda Well, WA M 36/303 19.4% Equity- ANI holds 80.6%
McDonough Lookout, WA M 36/329 & 330 19.4% Equity- ANI holds 80.6%
ANI
Australian Nickel
Investments Pty Limited
  • See chapter 19 for defined terms 1 September 2016

Page 6