ALTECH BATTERIES LTD — Interim / Quarterly Report 2012

Mar 13, 2012

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ABN 45 125 301 206

INTERIM REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2011

CONTENTS

PAGE

DIRECTORS’ REPORT	4
AUDITOR’S INDEPENDENCE DECLARATION	6
STATEMENT OF FINANCIAL POSITION	7
STATEMENT OF COMPREHENSIVE INCOME	8
STATEMENT OF CHANGES IN EQUITY	9
STATEMENT OF CASH FLOWS	10
CONCISE NOTES TO THE FINANCIAL STATEMENTS	11
DIRECTORS’ DECLARATION	15
INDEPENDENT REVIEW REPORT	16

CORPORATE DIRECTORY

DIRECTORS

Luke Atkins (Chairman) Ric Dawson(Managing Director) Daniel Tenardi(Non-Executive Director) Chris Forrester (Non-Executive Director) David Brook(Non-Executive Director)

AUDITORS

Moore Stephens Level 3, 12 St Georges Terrace, PERTH WA 6000

SHARE REGISTRY

COMPANY SECRETARY

Piers Lewis

Security Transfer Registrars Pty Ltd 770 Canning Highway Applecross WA 6153 Telephone: +618 9315 2333 Facsimile: +618 9315 2233

REGISTERED OFFICE & PRINCIPAL PLACE OF BUSINESS

STOCK EXCHANGE LISTING

3 Bay Road Claremont, Western Australia 6010 Phone: +618 9389 5557 Facsimile: +618 9389 5510 Email: info@ammg.com.au Website: www.ammg.com.au

The Company is listed on Australian Securities Exchange Limited

Home Exchange: Perth ASX Codes: AKA AKAOA

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DIRECTORS’ REPORT

_______________

The Directors present their report on Australia Minerals and Mining Group Limited for the half-year ended 31 December 2011.

BOARD OF DIRECTORS

The names and details of the Australia Minerals and Mining Group Limited (“Company”) directors in office during the financial period and until the date of this report are as follows. Directors were in office for this entire period unless otherwise stated.

Luke Atkins Chairman Ric Dawson Managing Director Daniel Tenardi Non-Executive Director Chris Forrester Non-Executive Director David Brook Non-Executive Director

COMPANY SECRETARY

Piers Lewis

REVIEW OF OPERATIONS

During the six monthly period ending 31 December 2011, the Company reached agreement with Minemakers (Iron) Pty Ltd to acquire their 80% interest in the West Southdown project. Situated approximately 80kms from the town and port of Albany, the renamed Southdown Extension Project is a 22-block exploration licence that lies along strike from Grange Resources’ Southdown magnetite project in south-Western Australia. Subsequent to year end, the company’s first round of drilling commenced to test previously identified magnetic anomalies at the Southdown Extension Project. Mineral analysis results and Davis Tube Recovery (DTR) analysis are pending.

AMMG signed a memorandum of understanding (MOU) for the development of the Company’s 100% owned Yilgarn Iron Ore Projects and 100% owned Canning Coal Project with Queensland-based Anhui Lianghuai Resources Pty Ltd, the wholly owned subsidiary of the Anhui Provincial Bureau of Coal and Geology. A further MOU was later signed to include the Company’s 80% owned Southdown Extension Iron Ore Project.

The Company was successful in its submissions to the state government’s Exploration Incentive Scheme (EIS) co-funded drilling program for its 100% owned Bencubbin and Pingaring iron ore projects. Subsequent to year end, reverse circulation (RC) drilling commenced at the Bencubbin Iron Ore Project. Mineral analysis results and DTR’s are currently pending.

The Company sent a small kaolin sample from its 100% owned Meckering Aluminous Clay Project to a Chinese technology holder for processing and analysis. Using his unique laboratory scale acid-based process, the Chinese technology holder, Professor Shang, successfully produced 1.06kgs of 99.5% smelter grade alumina (SGA) and 85gms of 99.99% high purity alumina (HPA). Those samples were then independently verified by TSW Analytical, an Australian-based company headed by experienced chemistry professionals.

Following the verification of the samples, AMMG signed an option agreement with Professor Shang to acquire an exclusive Australia-wide technology licence for the processing of aluminous clay (kaolin) to alumina via an acid-based technology process. AMMG will continue to work closely with Professor Shang towards advancing and tailoring the unique technology process to the specific attributes of AMMG’s particular kaolin material, which has relatively high alumina and low impurity levels.

The Company commenced the first of three rounds of drilling in early November 2011 at its 100% owned Constance Range Iron Ore Project in north-west Queensland. Unfortunately, due to very poor weather conditions and safety concerns, the drilling program was aborted until weather improves. The drilling program has been scheduled to recommence in May 2012.

The Company appointed Michael O’Mara to the position of Chief Geologist in October. Michael was previously employed at Jupiter Mines, where he worked on their Central Yilgarn iron ore project. In the same month, AMMG also appointed Joel Rowe as its Exploration Geologist. Joel was previously working at Hazelwood Resources Ltd on their tungsten projects.

² The Company has 17 granted tenements and 47 tenements totalling approximately 12,213km .

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DIRECTORS’ REPORT

_______________

RESULTS OF OPERATIONS

The operating loss after income tax of the Company for the half-year ended 31 December 2011 was $529,873. The Company’s basic loss per share for the period was 0.5 cents.

No dividend has been paid during or is recommended for the financial period ended 31 December 2011.

FINANCIAL POSITION

The Company’s working capital, being current assets less current liabilities was $5,395,869 at 31 December 2011 (30 June 2011: $6,629,582).

In the Directors’ opinion there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.

AUDITOR’S INDEPENDENCE DECLARATION

The lead auditor’s independence declaration for the half-year ended 31 December 2011 has been received and immediately follows the Directors’ Report.

This report has been made in accordance with a resolution of the Board of Directors.

Luke Atkins Chairman

Dated at Perth this 14[th] day of March 2012

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Level 3, 12 St Georges Terrace Perth WA 6000 PO Box 5785, St Georges Terrace WA 6831 T +61 (0)8 9225 5355 F +61 (0)8 9225 6181

AUDITOR’S INDEPENDENCE DECLARATION UNDER S307C OF THE CORPORATIONS ACT 2001 TO THE DIRECTORS OF AUSTRALIA MINERALS & MINING GROUP LIMITED

www.moorestephens.com.au

As lead auditor for the review of Australia Minerals & Mining Group Limited for the half-year ended 31 December 2011, I declare that, to the best of my knowledge and belief, there have been:

• no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the review; and

• no contraventions of any applicable code of professional conduct in relation to the review.

This declaration is in respect of Australia Minerals & Mining Group Limited during the year.

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NEIL PACE MOORE STEPHENS PARTNER CHARTERED ACCOUNTANTS

Signed at Perth this 14[th] day of March 2012.

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STATEMENT OF FINANCIAL POSITION For the Half-Year Ended 31 December 2011

Note Current Assets Cash and cash equivalents Trade and other receivables Other assets Total Current Assets Non Current Assets Property, Plant & Equipment Research & Development Exploration and evaluation expenditure Total Non-Current Assets TOTAL ASSETS Current Liabilities Trade and other payables TOTAL LIABILITIES NET ASSETS Equity Issued Capital Reserves Accumulated losses TOTAL EQUITY	Consolidated 31 December 2011 30 June 2011 $ $ 5,908,152 6,580,296 22,541 143,577 - 7,500
	5,930,693 6,731,373
	48,841 61,235 235,340 - 1,794,962 1,272,321
	2,079,143 1,333,556
	8,009,836 8,064,929
	534,824 101,791
	534,824 101,791
	7,475,012 7,963,138
	8,805,581 8,804,581 735,697 694,950 (2,066,266) (1,536,393)
	7,475,012 7,963,138

The above statement of financial position should be read in conjunction with the accompanying notes.

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STATEMENT OF COMPREHENSIVE INCOME For the Half-Year Ended 31 December 2011

Revenue from ordinary activities Expenses Occupancy costs Professional fees Corporate costs Wages & Salaries Director’s fees Administration costs Share based payments Exploration expenditure written off Loss before income tax expense Income tax expense Loss from continuing operations Other comprehensive Income Total comprehensive income / (loss) for the period Total comprehensive income / (loss) attributable to members of Company Basic loss per share (cents per share) Diluted loss per share (cents per share)	Consolidated 31 December 31 December 2011 2010 $ $ 182,706 200,381 (29,272) (28,972) (41,567) (89,847) (74,974) (49,062) (165,252) (95,523) (34,273) (187,061) (98,228) (52,351) (5,842) - (263,171) (108,964)
	(529,873) (411,398) - -
	(529,873) (411,398)
	- -
	(529,873) (411,398)
	(529,873) (411,398)
	(0.5) (0.5) (0.5) (0.5)

The above statement of comprehensive income should be read in conjunction with the accompanying notes.

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STATEMENT OF CHANGES IN EQUITY For the Half-Year Ended 31 December 2011

Consolidated Balance at 1 July 2010 Loss for the period Other comprehensive income Total comprehensive income for the period Equity-based payments Share issued Cost of issue Balance at 31 December 2010 Balance at 1 July 2011 Loss for the period Other comprehensive income Total comprehensive income for the period Equity-based payments Issue of shares Issue of options Balance at 31 December 2011	Issued Capital $ Accumulated losses $ Reserves $ Total $ 8,804,581 (614,318) 427,932 8,618,195
	- (411,398) - (411,398) - - - -
	- (411,398) - (411,398)
	- - 108,964 108,964 - - - - - - - -
	8,804,581 (1,025,716) 536,896 **8,315,761 **
	8,804,581 (1,536,393) 694,950 7,963,138
	- (529,873) - (529,873) - - - -
	- (529,873) - (529,873) - - 5,842 5,842 1,000 - - 1,000 - - 34,905 34,905
	8,805,581 (2,066,266) 735,697 7,475,012

The above statement of changes in equity should be read in conjunction with the accompanying notes.

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STATEMENT OF CASH FLOWS For the Half-Year Ended 31 December 2011

Cash Flows from Operating Activities Payments to suppliers, contractors and employees Payments for exploration and evaluation Interest received Research & Development Net cash flows used in operating activities Cash Flows from Investing Activities Purchase of Property, Plant & Equipment Payments for acquisition of tenements Net cash used in investing activities Cash Flows from Financing Activities Proceeds from issue of options Oversubscription of shares Share issue expenses Net cash flows from financing activities Net increase/(decrease) cash and cash equivalents Cash and cash equivalents at the beginning of the financial period Cash and cash equivalents at the end of the financial period	Consolidated 31 December 31 December 2011 2010 $ $ (353,275) (476,189) (505,642) (249,631) 303,742 135,241 (150,712) -
	(705,887) (590,579)
	(2,162) (7,205) - -
	(2,162) (7,205)
	35,905 - - - - -
	35,905 -
	(672,144) (597,784) 6,580,296 7,925,895
	5,908,152 7,328,111

The above statement of cash flows should be read in conjunction with the accompanying notes.

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Australia Minerals and Mining Group Limited ABN 45 125 301 206

CONDENSED NOTES TO THE HALF YEAR FINANCIAL STATEMENTS

1. Corporate Information

The financial report of Australia Minerals and Mining Group Limited (the Company) for the half-year ended 31 December 2011 was authorised for issue in accordance with a resolution of the directors on 14 March 2012. Australia Minerals and Mining Group Limited is a limited company incorporated in Australia and its shares are publicly traded on the Australian Securities Exchange.

The nature of the operations and principal activities of the Company are described on page 4 of this report.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Preparation

These general purpose interim financial statements for half-year reporting period ended 31 December 2011 have been prepared in accordance with requirements of the Corporations Act 2001 and Australian Accounting Standard AASB 134: Interim Financial Reporting.

This interim financial report is intended to provide users with an update on the latest annual financial statements of Australia Minerals and Mining Group Limited and its controlled entities (referred to as the consolidated group or the Group). As such, it does not contain information that represents relatively insignificant changes occurring during the half-year within the Group. It is therefore recommended that this financial report be read in conjunction with the annual financial statements of the Group for the year ended 30 June 2011, together with any public announcements made during the following half-year.

Accounting Policies

The same accounting policies and methods of computation have been followed in this interim financial report as were applied in the most recent annual financial statements, except in relation to the matters discussed below.

Critical Accounting Estimates and Judgments

The critical estimates and judgments are consistent with those applied and disclosed in the June 2011 annual report, except in relation to the following matter:

Impairment – carbon price

There is presently uncertainty in relation to the impacts of the carbon pricing mechanism recently introduced by the Australian Government. This carbon pricing system could potentially affect the assumptions underlying value-in-use calculations used for asset impairment testing purposes. The consolidated entity has not incorporated the effect of any carbon price implementation in its impairment testing at 31 December 2011.

New and Revised Accounting Requirements Applicable to the Current Half-year Reporting Period

For the half-year reporting period to 31 December 2011, a number of new and revised Accounting Standard requirements became mandatory for the first time, some of which are relevant to the Group. A discussion of these new and revised requirements that are relevant to the Group is provided below:

• AASB 124: Related Party Disclosures (December 2009)

AASB 124 (December 2009) introduces a number of changes to the accounting treatment of related parties compared to AASB 124 (December 2005, as amended), including the following:

• The definition of a “related party” is simplified, clarifying its intended meaning and eliminating inconsistencies from the definition, including:

• the definition now identifies a subsidiary and an associate with the same investor as related parties of each other;

• entities significantly influenced by one person and entities significantly influenced by a close member of the family of that person are no longer related parties of

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Australia Minerals and Mining Group Limited ABN 45 125 301 206

CONDENSED NOTES TO THE HALF YEAR FINANCIAL STATEMENTS

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

each other;

• the definition now identifies that, whenever a person or entity has both joint control over a second entity and joint control or significant influence over a third party, the second and third entities are related to each other; and

• the definition now clarifies that a post-employment benefit plan and an employer sponsor of such a plan are related parties of each other.

• A partial exemption is provided from the disclosure requirements for governmentrelated entities. Entities that are related by virtue of being controlled by the same government can provide reduced related party disclosures.

Application of AASB 124 (December 2009) did not have a significant impact on the financial statements of the Group.

• AASB 2010–4: Further Amendments to Australian Accounting Standards arising from the Annual Improvements Project [AASB 1, AASB 7, AASB 101 & AASB 134 and Interpretation 13]

This Standard details numerous non-urgent but necessary changes to Accounting Standards arising from the IASB’s annual improvements project. Key changes include:

• clarifying the application of AASB 108 prior to an entity’s first Australian-AccountingStandards financial statements;

• adding an explicit statement to AASB 7 that qualitative disclosures should be made in the context of the quantitative disclosures to better enable users to evaluate an entity’s exposure to risks arising from financial instruments;

• amending AASB 101 to clarify that disaggregation of changes in each component of equity arising from transactions recognised in other comprehensive income is required to be presented, but is permitted to be presented in the statement of changes in equity or in the notes;

• adding a number of examples to the list of events and transactions that require disclosure under AASB 134; and

• making sundry editorial amendments to various Standards and Interpretations.

Application of the amendments in AASB 2010–4 did not have a significant impact on the financial statements of the Group.

• AASB 1054: Australian Additional Disclosures and AASB 2011–1: Amendments to Australian Accounting Standards arising from the Trans-Tasman Convergence Project [AASB 1, AASB 5, AASB 101, AASB 107, AASB 108, AASB 121, AASB 128, AASB 132 & AASB 134 and Interpretations 2, 112 & 113]

AASB 1054 sets out the Australian-specific disclosures that are additional to IFRS disclosure requirements.

The disclosure requirements in AASB 1054 were previously located in other Australian Accounting Standards

Application of AASB 1054 did not have a significant impact on the financial statements of the Group.

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Australia Minerals and Mining Group Limited ABN 45 125 301 206

CONDENSED NOTES TO THE HALF YEAR FINANCIAL STATEMENTS

3. Earnings Per Share

	31 Dec 2011	31 Dec 2010
	Cents	Cents
Basic loss per share	(0.5)	(0.5)
Diluted loss per share	(0.5)	(0.5)

Weighted average number of ordinary shares used in the calculation of basic loss per share is 100,975,002. Options to purchase ordinary shares not exercised at 31 December 2011 have not been included in the determination of basic earnings per share.

4. Contributed Equity

(a) Issued and paid up capital

Ordinary shares Shares issued and fully paid Capital raising costs Issued and fully paid capital	31 December 2011 $ 9,581,519 (775,938) 8,805,581	30 June 2011 $ 9,580,519 (775,938)
		8,804,581

(b) Movement in ordinary shares on issue

1/07/2011 Opening Balance 27/10/2011 Options exercised 31/12/2011 Closing Balance	Number of Shares	Total $
	100,975,002 5,000 100,980,002	8,804,581 1,000
		8,805,581

5. Segment Information

Management has determined that the Company has one reporting segment being material exploration. As the Company is focused on mineral exploration, management make resource allocation decisions by reviewing the working capital balance, comparing cash balances to committed exploration expenditure and the current results of exploration work performed. This internal reporting framework is the most relevant to assist the Board with making decisions regarding the Company and its ongoing exploration activities, while also taking into consideration the results of exploration work that has been performed to date and capital available to the Company.

The exploration assets as presented relate to the reporting segment, as identified above. All revenue and expenses relate to corporate activities and would not be used to assess segment performance.

6. Subsequent Events

Since the end of the half year, the Directors are not aware of any matter or circumstance not otherwise dealt with in the Directors' Report or the Financial Statements that has significantly or may significantly affect, the state of affairs or operations of the Company in the future financial periods.

7.

Contingent Liabilities

In the opinion of the directors, there are no contingent liabilities at 31 December 2011 and none were incurred in the interval between the period end and the date of this financial report.

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Australia Minerals and Mining Group Limited ABN 45 125 301 206

CONDENSED NOTES TO THE HALF YEAR FINANCIAL STATEMENTS

8. Cash and Cash Equivalents

For the purposes of the half year Cash Flow Statement, cash and cash equivalents comprise the following at 31 December 2011:

Cash at bank and in hand Short-term deposits	31 December 2011 $ 111,307 5,796,845
	5,908,152

9. Related Party Disclosures

Mr Luke Atkins’ parents own the premises that the Company rents for its registered office. During the half year the Company paid $28,296 (2010 – $26,152) on normal commercial terms and conditions.

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AUSTRALIA MINERALS AND MINING GROUP LIMITED ABN 32 138 405 419

DIRECTORS’ DECLARATION

In accordance with a resolution of the directors of Australia Minerals and Mining Group Limited, I state that:

In the opinion of the directors:

• (a) the financial statements and notes of the Company are in accordance with the Corporations Act 2001, including:

• (i) giving a true and fair view of the financial position as at 31 December 2011 and of the performance for the half-year ended on that date of the Company; and

• (ii) complying with Accounting Standards AASB 134: “Interim Financial Reporting” and the Corporations Regulations 2001; and

• (b) there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.

On behalf of the Board

Luke Atkins Chairman

Dated at Perth this 14[th] day of March 2012

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Level 3, 12 St Georges Terrace Perth WA 6000

PO Box 5785, St Georges Terrace WA 6831

INDEPENDENT AUDITOR’S REVIEW REPORT TO THE MEMBERS OF AUSTRALIA MINERALS & MINING GROUP LIMITED

T +61 (0)8 9225 5355 F +61 (0)8 9225 6181 www.moorestephens.com.au

Report on the Half-year Financial Report

We have reviewed the accompanying half-year financial report of Australia Minerals & Mining Group Limited, which comprises the consolidated condensed statement of financial position as at 31 December 2011, the consolidated condensed statement of comprehensive income, consolidated condensed statement of changes in equity, the consolidated condensed statement of cash flows for the half-year ended on that date, notes comprising a summary of significant accounting policies and other explanatory notes and the directors’ declaration.

Directors’ Responsibility for the Half-Year Financial Report

The directors of Australia Minerals & Mining Group Limited are responsible for the preparation of the half-year financial report that gives a true and fair view in accordance with Australian Accounting Standards (including Australian Accounting Interpretations) and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the half-year financial report that is free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express a conclusion on the half-year financial report based on our review. We conducted our review in accordance with Auditing Standard on Review Engagements ASRE 2410: Review of an Interim and Other Financial Reports Performed by the Independent Auditor of the Entity in order to state whether, on the basis of the procedures described, we have become aware of any matter that makes us believe that the half-year financial report is not in accordance with the Corporations Act 2001 including: giving a true and fair view of the consolidated entity’s financial position as at 31 December 2011 and its performance for the half-year ended on that date; and complying with Accounting Standard AASB 134: Interim Financial Reporting and the Corporations Regulations 2001. As the auditor of Australia Minerals & Mining Group Limited, ASRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual financial report.

A review of a half-year financial report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and review procedures. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

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Independence

In conducting our review, we have complied with the independence requirements of the Corporations Act 2001 . We confirm that the independence declaration required by the Corporations Act, which has been given to the directors of Australia Minerals & Mining Group Limited, would be in the same terms if provided to the directors as at the time of this auditor’s review report.

Conclusion

Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the half-year financial report of Australia Minerals & Mining Group Limited is not in accordance with the Corporations Act 2001 including:

• (i) giving a true and fair view of Australia Minerals & Mining Group Limited’s financial position as at 31 December 2011 and of its performance for the half-year ended on that date; and

• (ii) complying with AASB 134: Interim Financial Reporting and the Corporations Regulations 2001.

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NEIL PACE PARTNER

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MOORE STEPHENS CHARTERED ACCOUNTANTS

Signed at Perth this 14[th] day of March 2012.

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