ASTRON LIMITED — Interim / Quarterly Report 2015

Feb 26, 2015

Astron Corporation Limited

Company Number: 1687414 ARBN 154 924 553

Half Year Report

ended 31 December 2014

Contents

• Corporate Directory

• Appendix 4D

• Consolidated Financial Statements

Astron Corporation Limited – Half Year Report

CORPORATE DIRECTORY

Astron Corporation Limited: Company Number: 1687414

Directors

Mr Gerard King (Chairman, Non executive Director) Mr Alexander Brown (Managing Director) Mr Robert Flew (Non executive Director) Mdm Kang Rong (Executive Director)

Company Secretary and Registered Office

McCabe Secretarial Service Limited 16th Floor, Wing-On-Centre, 111 Connaught Road Central, Hong Kong

Australian Corporate Offices

73 Main Street, Minyip, VIC 3392 Telephone: 61 3 5385 7088

China Business Office

c/ Yingkou Astron Mineral Resources Co Ltd Level 18, Building B, Fortune Plaza 53 Beizhan Road, Shenhe District, Shenyang Liaoning Province, China 110016 Telephone: 86 24 3128 6222 Fax: 86 24 3128 6222

Bankers

Commonwealth Bank of Australia 48 Martin Place Sydney NSW 2000, Australia

Share Registrar

Computershare Investor Services Limited Level 3, 60 Carrington Street Sydney NSW 2001, Australia

Computershare Hong Kong Investor Services Limited

Hopewell Centre, 46th Floor 183 Queen’s Road East Wan Chai, Hong Kong

Auditors

Grant Thornton Audit Pty Ltd Level 17, 383 Kent Street Sydney NSW 2000, Australia

Grant Thornton Jingdu Tianhua 20th Floor Sunning Plaza 10 Hysan Avenue Causeway Bay, Hong Kong

Internet Address

www.astronlimited.com

2

Astron Corporation Limited – Half Year Report Appendix 4D

HALF YEAR INFORMATION GIVEN TO THE ASX UNDER LISTING RULE 4.2A

Name of entity
		ASTRON CORPORATION LIMITED
Company Number
			1687414
Reporting period				Previous corresponding period
Half Year ended 31 December 2014				Half Year ended 31 December 2013

The information contained in this report should be read in conjunction with the most recent annual financial report.

3

1.	RESULTS FOR ANNOUNCEMENT TO THE MARKET
	Total revenue from operations		Down		61.3%		to	$1,135,876
	Revenue from trading operations		Down		12.7%		to	$829,461
					By
	Net loss before tax attributable to members		Down		$382,996		to	$2,128,232
	Net asset value per share		Down		48.3%		to	$0.82
2.	REVIEW OF OPERATIONS
	A review of operations is included in the Directors’ Report.
3.	DETAILS OF CONTROLLED ENTITIES
	During the period the Group did not gain or lose control of any entities.
4.	DETAILS OF ASSOCIATES AND JOINT VENTURE ENTITIES
	The group has no associates or joint venture entities.
5.	DIVIDENDS
	No dividend was paid or proposed for the period to 31 December 2014 or the comparative period.
6.	REVIEW DISPUTES OR QUALIFICATIONS
	There are no review disputes or qualifications.
7.	ACCOUNTING STANDARDS
	International Financial Reporting Standards have been used in complying the information contained in						Appendix 4D.

4

Astron Corporation Limited and its Subsidiaries Company Number: 1687414

Consolidated Financial Statements For the Half Year Ended 31 December 2014

Astron Corporation Limited and its Subsidiaries

Company Number: 1687414

Consolidated Financial Statements

For the Period Ended 31 December 2014

CONTENTS	Page
Directors' Report	1
Auditor's Independence Declaration	4
Consolidated Statement of Profit or Loss and Other Comprehensive Income	5
Consolidated Statement of Financial Position	7
Consolidated Statement of Changes in Equity	8
Consolidated Statement of Cash Flows	9
Notes to the Consolidated Financial Statements	10
Declaration by Directors	20
Independent Auditor’s Review Report	21

Astron Corporation Limited and its Subsidiaries

Company Number: 1687414

Directors' Report

31 December 2014

Your directors present their report on the consolidated entity consisting of Astron Corporation Limited and its subsidiaries (the Group) at the end of, or during, the half-year ended 31 December 2014.

1. DIRECTORS

The directors in office at any time during, or since the end of, the period are:

Mr Gerard King Mr Alexander Brown

Mr Robert Flew Mr Ronald McCullough (Resigned: 16 October 2014) Mdm Kang Rong

2. BUSINESS REVIEW

Overview

Astron Corporation Limited (Company) is the Group’s holding company. The Company indirectly controls two wholly owned Australian operating subsidiaries, Astron Limited and Donald Mineral Sands Pty Limited (DMS) and two operating Chinese subsidiaries, Yingkou Mineral Resources Company Limited (Resources) and Astron Titanium Yingkou Company Limited (Titanium). DMS holds the Donald Mineral Sands mining project (Donald).

Review of financials

Statement of Profit or Loss and Other Comprehensive Income

Total revenue decreased by 61.3% to $1,135,876. The decrease in revenue is primarily attributable to a decrease in interest received during the period due to the 75 cents per share return of capital in May 2014.

Trading revenue for the period decreased by 12.7% to $829,461 while the gross profit improved to a gross loss of $11,083 ($402,599 gross loss in 2013). The trading results reflect the general market in trading activities in China.

Non trading related operating expenses were relatively consistent between the periods, however it is anticipated that ongoing cost reductions will have a greater impact in the second half results. While general overheads have decreased non capitalised development costs have increased in particular with respect to the commencement of activities in the USA. Overall there has been a decrease in number of employees (where redundancy costs have impacted the results), changes in research and development costs in China and reversal of provisions for impairment in receivables and inventories.

Income tax expense comprises a movement in the deferred tax liability and the receipt of $1,148,989 for a research & development refund. The increase in deferred tax provided corresponds with the increase in Donald’s capitalised development expenditure.

Statement of Financial Position

Cash

Cash and term deposits decreased by $2,918,524 from 30 June 2014 to the end of the current period. The largest individual items of spend were the expenditure incurred in connection with the development of Donald, Niafarang projects, USA project development and the construction of infrastructure at our Yingkou site in China.

1

Astron Corporation Limited and its Subsidiaries

Company Number: 1687414

Directors' Report

31 December 2014

Current assets

Inventory increased by $994,184 to $1,443,964 primarily as a result of initial shipments of materials from the USA, reversal in writedowns in realisable value and ongoing trade operations.

The increase in intangible assets from 30 June 2014 arises from Donald and Niafarang (Senegal) project development expenditure capitalised in terms of AASB6.

The increase in the foreign currency translation reserve arises from mainly the impact of depreciation of the Australian Dollar relevant to the Hong Kong Dollar and Yuan on the translation of the foreign operations.

The net asset value per share has decreased by 48.3% to $0.82. This movement can mainly be attributed to the 75 cent per share return of capital in May 2014.

Review of operations

The development of the Donald and Niafarang projects continued during the period under review. The following milestones were achieved:

Donald Project

Feasibility study

• Work continued on the feasibility study, including further work on more accurately defining operating and capital expenditure. Costings continue to be refined.

Exploration/Work Plan

• Exploration and delineation drilling is currently ongoing together with further metallurgical work. This is anticipated to be completed in April 2015.

Funding

• The Company continues to explore funding options for the Donald project. As at the date of this report, no binding agreements have been reached. As announced on 14 April 2014 Donald Mineral Sands Pty Ltd has entered into a framework agreement with the China Machinery Engineering Corporation, which sets out the parties’ intentions and the process for agreeing on an EPC contract for supply and installation of equipment for the MUP/WCP for the Donald Mineral Sands project and assistance with funding the Project.

Niafarang project Senegal

• Work continued towards obtaining the mining licence. Astron anticipates that the ongoing negotiations will result in the rewarding of a mining licence in the second half of 2015. Assuming this is the case Astron will endeavour to commence mine development with an expectation production will commence by the end of the calendar year.

2

Astron Corporation Limited and its Subsidiaries

Company Number: 1687414

Directors' Report

31 December 2014

Going forward

In respect to the Donald Project, the group will continue to refine the definitive feasibility study and together with its financial advisers work towards fund raising activities. In China, work will continue on the research and development programme. Astron is also working to finalise the mining licence in Senegal and commence production.

The forward funding of Astron projects is dependent on a number of factors. The short term needs of the company to meet its ongoing administration costs and committed project expenditure are forecast to be covered by the existing resources on hand for at least the next 12 months.There are several sources of additional funds available to the Group if necessary.

With respect to the projects the Group is working through funding options. These include land assets for sale in China and the likely award of recompense from the court proceedings relating to the Gambian project which have been found in our favour. The timing of these sources of funds are not able to be precisely predicted.

With regard to funding for the Senegal project, discussions are advanced to realise a joint venture and a letter of credit arrangement. The timing of the need and source of the funding is dependent on the issue of the mining lease which is now expected toward the end of the financial year.

Funding for the Donald project is advancing with Chinese sources, with the framework agreement having been signed. There will a need for additional funding over and above this, which will be pursued when the timing of the Chinese funding becomes clearer. Options include a mixture of equity and debt funding.

3. AUDITOR’S INDEPENDENCE DECLARATION

The lead auditor’s independence declaration for the half year ended 31 December 2014 has been received and can be found on page 4 of the half-year financial statements.

Signed in accordance with a resolution of the Board of Directors and is signed for and on behalf of the Directors by:

Chairman:

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Mr Gerard King

Dated this 26[th] day of February 2015

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==> picture [206 x 39] intentionally omitted <==

Level 17, 383 Kent Street Sydney NSW 2000

Correspondence to: Locked Bag Q800 QVB Post Office Sydney NSW 1230

T +61 2 8297 2400 F +61 2 9299 4445 E info.nsw@au.gt.com W www.grantthornton.com.au

Auditor’s Independence Declaration

To The Directors of Astron Corporation Limited

As lead auditor for the review of Astron Corporation Limited for the half-year ended 31 December 2014, I declare that, to the best of my knowledge and belief, there have been no contraventions of the auditor independence requirements of APES 110 Code of Ethics for Professional Accountants issued by the Accounting Professional & Ethical Standards Board.

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GRANT THORNTON AUDIT PTY LTD Chartered Accountants

==> picture [106 x 60] intentionally omitted <==

L M Worsley Partner - Audit & Assurance

Sydney, 26 February 2015

Grant Thornton Audit Pty Ltd ACN 130 913 594 a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389

‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or refers to one or more member firms, as the context requires. Grant Thornton Australia Ltd is a member firm of Grant Thornton International Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one another and are not liable for one another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to Grant Thornton Australia Limited ABN 41 127 556 389 and its Australian subsidiaries and related entities. GTIL is not an Australian related entity to Grant Thornton Australia Limited.

Liability limited by a scheme approved under Professional Standards Legislation. Liability is limited in those States where a current scheme applies

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Astron Corporation Limited and its Subsidiaries

Company Number: 1687414

Consolidated Statement of Profit or Loss and Other Comprehensive Income

For the Half Year Ended 31 December 2014

	Half-Year Ended Half-Year Ended
	31 December 31 December
	2014 2013
Note
	$ $
Sales revenue Cost of sales Gross (loss)/profit Interest income Other revenue Distribution expenses Marketing expenses Occupancy expenses Administrative expenses Write up/(down) of stock Write up/(down) of receivable Costs associated with Gambian litigation Costs associated with USA project development Other expenses (Loss) /profit before income tax expense Income tax benefit/(expense) Net (loss)/ profit for the half year 2 Other comprehensive (loss)/profit Foreign currency translation differences Increase/ (decrease) in fair value of available-for-sale financial assets Other comprehensive (loss) / income for the half year, net of tax Total comprehensive profit / (loss) for the half year (Loss) / profit for the half year attributable to: Owners of Astron Corporation Limited Total comprehensive profit / (loss) for the half year attributable to: Owners of Astron Corporation Limited	829,461 950,505 (840,544) (1,353,104)
	(11,083) (402,599) 111,290 1,929,154 195,126 55,954 (42,006) (45,201) (14,422) (31,772) (132,774) (110,290) (2,635,551) (3,400,740) 407,838 (479,085) 575,357 - (106,636) - (448,786) - (26,585) (26,649)
	(2,128,232) (2,511,228) 1,729,687 (267,555)
	(398,545) (2,778,783)
	4,189,558 1,280,421 415,986 280,215
	4,605,544 1,560,636
	4,206,999 (1,218,147)
	(398,545) (2,778,783)
	4,206,999 (1,218,147)

The above Consolidated Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with the accompanying notes.

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Astron Corporation Limited and its Subsidiaries

Company Number: 1687414

Consolidated Statement of Profit or Loss and Other Comprehensive Income

For the Half Year Ended 31 December 2014

		Half-Year Ended	Half-Year Ended
		31 December	31 December
	Note	2014	2013
For (loss)/ profit for the half year
Basic (loss)/ earnings per share (cents per share)	10	(0.33)	(2.27)
Diluted (loss)/ earnings per share (cents per share)	10	(0.33)	(2.27)

The above Consolidated Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with the accompanying notes.

6

Astron Corporation Limited and its Subsidiaries

Company Number: 1687414

Consolidated Statement of Financial Position

As at 31 December 2014

			As at	As at
			31 December 2014	30 June 2014
		Note	$	$
	ASSETS
Current assets
Cash and cash equivalents			1,891,761	2,905,195
	Term deposits greater than 90-days		5,315,182	7,220,272
	Trade and other receivables		961,161	1,569,997
	Inventories	11	1,443,964	449,780
Available-for-sale financial assets			1,622,234	1,206,249
	Current tax assets		255,307	558,154
			11,489,609	13,909,647
Assets classified as held for sale			7,795,235	6,738,679
Total current assets			19,284,844	20,648,326
Non current assets
Property, plant and equipment		13	23,080,470	20,850,447
	Intangible assets	12	63,167,133	61,182,133
	Land use rights		3,320,452	2,903,760
	Total non current assets		89,568,055	84,936,340
TOTAL ASSETS			108,852,899	105,584,666
LIABILITIES
Current liabilities
	Trade and other payables		2,071,230	2,429,298
	Provisions		18,546	18,546
Total current liabilities			2,089,776	2,447,844
Non current liabilities
Deferred Tax liabilities			5,728,832	6,309,530
	Long-termprovisions		40,000	40,000
Total non current liabilities			5,768,832	6,349,530
TOTAL LIABILITIES			7,858,608	8,797,374
NET ASSETS			100,994,291	96,787,292
EQUITY
Contributed equity		6	1,605,048	1,605,048
Reserves			10,311,566	5,706,022
Retained earnings			89,077,677	89,476,222
TOTAL EQUITY			100,994,291	96,787,292

The above Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes.

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Astron Corporation Limited and its Subsidiaries

Company Number: 1687414

Consolidated Statement of Changes in Equity

As at 31 December 2014

	Contributed Equity $ Retained Earnings $ Share- Based Payment Reserve $ Financial Assets Available-For Sale-Reserve $ Foreign Currency Translation Reserve $ Total Equity $
Period Ended 31 December 2014 Equity as at 1 July 2014 Loss for the half year Other comprehensive income/(loss) - Increase/ (decrease) in fair value of available-for-sale financial assets - Exchange differences on translation of foreign operations Total comprehensive profit for the half year	1,605,048 89,476,222 - 505,599 5,200,423 96,787,292
	- (398,545) - - - (398,545) - - - 415,986 - 415,986 - - - - 4,189,558 4,189,558
	- (398,545) - 415,986 4,189,558 4,206,999
Increase in share-based payments reserve Transactions with owners in their capacity as owners	- - - - - -
	- - - - - -
Equity as at 31 December 2014	1,605,048 89,077,677 - 921,585 9,389,981 100,994,291

	Contributed Equity $ Retained Earnings $ Share- Based Payment Reserve $ Financial Assets Available-For Sale-Reserve $ Foreign Currency Translation Reserve $ Total Equity $
Period Ended 31 December 2013 Equity as at 1 July 2013 Loss for the half year Other comprehensive income/(loss) - Increase/ (decrease) in fair value of available-for-sale financial assets - Exchange differences on translation of foreign operations Total comprehensive profit for the half year	30,061,919 160,462,596 - 263,185 5,865,314 196,653,014
	- (2,778,783) - - - (2,778,783) - - - 280,215 - 280,215 - - - - 1,280,421 1,280,421
	- (2,778,783) - 280,215 1,280,421 (1,218,147)
Increase in share-based payments reserve Transactions with owners in their capacity as owners	- - - - - -
	- - - - - -
Equity as at 31 December 2013	30,061,919 157,683,813 - 543,400 7,145,735 195,434,867

The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes.

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Astron Corporation Limited and its Subsidiaries

Company Number: 1687414

Consolidated Statement of Cash Flows

For the Half Year Ended 31 December 2014

		Half-Year Ended	Half-Year Ended
		31 December	31 December
		2014	2013
		$	$
Cash flows from operating activities:
Receipts from customers		1,435,707	1,694,476
Payments to suppliers and employees		(4,016,620)	(3,613,112)
Interest received		374,488	1,684,099
Interest paid		(13,328)	(26,632)
Income taxes received/(paid)		1,451,836	(140,728)
Other Income/ (expenses)		-	55,682
Net cash(outflow)/inflow from operating activities		(767,917)	(346,215)
Cash flows from investing activities
	Decrease/(Increase) of short term deposits	1,905,091	(34,212,216)
Acquisition of property, plant and equipment		(28,586)	(26,826)
Acquisition of software rights		-	-
Acquisition of land use rights		-	-
Exploration, evaluationexpenditure and development costs		(2,209,344)	(3,142,880)
Net cash outflow from investing activities		(332,839)	(37,381,922)
Cash flows from financing activities:
Proceeds/(repayment) of borrowings		-	(301,909)
Net cash inflow/(outflow) from financing activities		-	(301,909)
Net decrease in cash held		(1,100,756)	(38,030,046)
Cash and cash equivalents at beginning of the year		2,905,194	45,790,618
Net foreign exchange differences		87,326	16,272
Cash and cash equivalents at end of the halfyear		1,810,764	7,776,844

The above Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes.

9

Astron Corporation Limited and its Subsidiaries

Company Number: 1687414

Notes to the Consolidated Financial Statements

For the Period Ended 31 December 2014

1 Statement of significant accounting policies

The interim consolidated financial statements of Astron Corporation Limited are for the six months ended 31 December 2014 and relate to the consolidated entity consisting of Astron Corporation Limited and its subsidiaries (the Group). These financial statements are presented in Australian dollars ($), which is the functional currency of the Group. These general purpose interim financial statements have been prepared in accordance with IAS 34 “Interim Financial Reporting”.

These half-year financial statements do not include all the notes of the type normally included in annual financial statements and therefore cannot be expected to provide as full an understanding of the financial performance, financial position and financing and investing activities of the consolidated entity as the full financial statements. Accordingly, these half-year financial statements are to be read in conjunction with the annual financial statements for the year ended 30 June 2014 and any public announcements made by Astron Corporation Limited during the half-year reporting period in accordance with the continuous disclosure requirements arising under the Australian Securities Exchange Listing Rules.

The historical cost basis has been used, except for available for sale financial assets which have been measured at fair value.

The same accounting policies and methods of computation have been followed in these half-year financial statements as compared with the most recent annual financial statements.

There are no differences between the Astron Corporation Limited’s and Astron Limited’s accounting policies under AAS and IFRS. All accounting policies have been consistently applied from the prior period.

Significant accounting policies

The interim financial statements have been prepared in accordance with the accounting policies adopted in the Group’s last annual financial statements for the year ended 30 June 2014.

Standards and Interpretations adopted in the current year:

The Group has adopted all of the new and revised Standards and Interpretations issued by the Australian Accounting Standards Board that are relevant to their operations and are effective for the current financial reporting period, being the half year ended 31 December 2014. In adopting these new and revised pronouncements, the Group has determined that there has been no material impact to the Group’s reported position or performance.

Standards and Interpretations in issue not yet adopted:

Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet effective and have not been adopted by the Group for the half year ending 31 December 2014. The Group does not believe these standards will have a material impact on the financial statements in the period in which they were adopted.

Forward Funding

The short term needs of the company to meet its ongoing administration costs and committed project expenditure are forecast to be covered by the existing resources on hand for at least the next 12 months, however, the Group will require additional funding to execute its long term plans.The Group anticipates a significant uplift in Chinese trading in the near term and there are several sources of additional funds available to the Group if necessary.

With respect to the projects, the Group is working through funding options. These include land assets for sale in China and the likely award of recompense from the court proceedings relating to the Gambian project which have been found in our favour. The timing of these sources of funds are not able to be precisely predicted.

With regard to funding for the Senegal project, discussions are advanced to realise a joint venture and a letter of credit arrangement. The timing of the need and source of the funding is dependent on the issue of the mining lease which is now expected toward the end of the financial year.

Funding for the Donald project is advancing with Chinese sources, with the framework agreement having been signed. There will a need for additional funding over and above this, which will be pursued when the timing of the Chinese funding becomes clearer. Options available to the Group include a mixture of equity and debt funding and the directors believe that such funding will be forthcoming.

10

Astron Corporation Limited and its Subsidiaries

Company Number: 1687414

Notes to the Consolidated Financial Statements

For the Period Ended 31 December 2014

2 Profit for the half year

	31 December	31 December
The following significant revenue and expense items are relevant to explaining	2014	2013
the financial performance	$	$
Interest revenue	111,290	1,929,154
Foreign exchange gain/ (loss)	6,013	23,374
Costs associated with Gambian Investments	(106,636)	(39,136)
Interest paid	(26,632)	(26,632)
Bad debt provisions reversed	575,357	-
Inventory provision gain/(loss)	407,838	(479,085)
USA development costs	(448,786)	-
Research and development expenditure	(215,897)	(333,768)

3 Dividends

Dividends paid for during the half year:

	31 December	31 December
	2014	2013
	$	$
Final unfranked dividend of NIL (2013: NIL) per share	-	-

4 Seasonality and irregular trends

No seasonal or irregular trends were noted during the review period.

5 Contingent liabilities and assets

Land use rights

In 2008, Titanium acquired a 50 year land use right from the Chinese government. As at 31 December 2014 the net book value of this land is $9,329,518 (30 June 2014: $8,080,796). However, about 83% ($7,795,235) of this has been reclassified as Assets Classified as held for sale in view of its potential sale, which is proposed to be completed by 31 December 2015.

The intention for the land use right held by Resources is currently being evaluated. As at 31 December 2014 the net book

value of the land is $1,786,169 (30 June 2014: $1,561,642).

The Directors believe that no significant loss, if any, will be incurred by the Group in relation to the above land use rights.

Minimum expenditure on Exploration and Mining Licenses

To maintain the Exploration and Mining Licenses the Group is required to spend $2,279,140 on exploration over the next year (2014: $1,272,439). The minimum expenditure amount per annum will normally increase over the life of an exploration licence.

Litigation

Astron continues to work towards a legal settlement with the Gambia Government, where the Internation Court has ruled in favour of Astron. The court is being briefed to make a determination as to the financial compensation which Astron would anticipate will be followed by settlement.

11

Astron Corporation Limited and its Subsidiaries

Company Number: 1687414

Notes to the Consolidated Financial Statements

For the Period Ended 31 December 2014

6 Issued share capital

	31 December	30 June
	2014	2014
	$	$
122,479,784 (30 June 2014: 122,479,784) Fully Paid Ordinary Shares @ 0.1 HK $	1,605,048	1,605,048
Total	1,605,048	1,605,048
	31 December	30 June
	2014	2014
	No.	No.
At the beginning of reporting period	122,479,784	122,479,784
At reporting date	122,479,784	122,479,784

7 Subsequent events

Astron holds 5,575,864 ordinary shares in Altona Mining Ltd (‘AOH’) whom subsequent to year end announced a 12 cent per share return of capital plus a 3 cent dividend. Astron anticipates receiving $836,340 in March 2015.

8 Subsidiaries

During the current or the prior half year periods the Group did not acquire or dispose of any subsidiary companies.

9 Segment Information

(a) Description of Segments

The Group has adopted IFRS 8 Operating Segments from whereby segment information is presented using a 'management approach', i.e. segment information is provided on the same basis as information used for internal reporting purposes by the managing Director (chief operating decision maker) who monitors the segment performance based on the net profit before tax for the period. Operating segments have been determined on the basis of reports reviewed by the managing Director/President who is considered to be the chief operating decision maker of the Group. The reportable segments are as follows:

• Astron Corporate: Group treasury and head office activities

• Senegal: Development of Niafarang mine

• Donald Mineral Sands: Development of the Donald Mineral Sands Mine

• Titanium: Development of mineral processing plant and mineral trading

• Mineral Resources: Mineral trading and construction of the mineral separation plant

12

Astron Corporation Limited and its Subsidiaries

Company Number: 1687414

Notes to the Consolidated Financial Statements

For the Period Ended 31 December 2014

9 Segment information (cont’d)

• (b) Segment information

Information provided to the managing Director/President

31 December	Donald Min	eral Sands	Tita	nium	Mineral Re	sources	Senegal	Senegal	O	ther	Conso	lidated
	2014	2013	2014	2013	2014	2013	2014	2013	2014	2013	2014	2013
	$	$	$	$	$	$	$	$	$	$	$	$
Revenue from external customers Sales Interest revenue Rent/Other income	- 701 12,448	- 234 10,249	164,349 37 82,091	151 165 -	665,112 - 100,587	950,354 315 22,846	- - -	- - -	- 110,552 -	- 1,928,440 22,859	829,461 111,290 195,126	950,505 1,929,154 10,249
Total revenue	13,149	10,483	246,477	316	765,699	973,515	-	-	110,552	1,951,299	1,135,877	2,935,613
Segment result Segment (loss)/profit	13,563	10,483	(44,264)	(684,009)	(86,028)	(1,835,158)	-	-	(2,011,502)	(2,544)	(2,128,231)	(2,511,228)
Net (loss)/ profit for the period									-	-	(2,128,231)	(2,511,228)
Impairment losses	-	-	-	-	-	-	-	-	-	19,363	-	19,363
Acquisition of PPE, Intangibles assets and other non-current segment assets	1,820,576	5,310,807	39,744	328,422	14,767	210,474	207,477	1,388,995	155,366	-	2,237,930	7,238,698
Depreciation and amortisation	359,172	1,921,916	26,865	146,988	163,074	270,494	13,935	13,935	60,739	124,308	623,785	2,477,641

13

Astron Corporation Limited and its Subsidiaries

Company Number: 1687414

Notes to the Consolidated Financial Statements

For the Period Ended 31 December 2014

9 Segment information (cont’d)

b) Segment information (cont’d)

2014	Donald Mineral Sands	Donald Mineral Sands	Titanium	Titanium	Mineral Resources	Mineral Resources	Senegal	Senegal	Other	Other	Consolidated	Consolidated
	31 Dec	30 Jun	31 Dec	30 Jun	31 Dec	30 Jun	31 Dec	30 Jun	31 Dec	30 Jun	31 Dec	30 Jun
	$	$	$	$	$	$	$	$	$	$	$	$
Assets Segment assets	64,480,612	63,103,716	19,777,354	16,503,857	11,626,328	10,437,497	3,754,735	3,453,681	9,213,867	12,085,915	108,852,896	105,584,666
Totalsegmentassets	64,480,612	63,103,716	19,777,354	16,503,857	11,626,328	10,437,497	3,754,735	3,453,681	9,213,867	12,085,915	108,852,896	105,584,666
Liabilities Segment liabilities	9,044,226	7,156,181	157,308	61,583	679,760	521,527	34,666	9,910	(2,057,352)	1,048,173	7,858,608	8,797,374
Total segment liabilities	9,044,226	7,156,181	157,308	61,583	679,760	521,527	34,666	9,910	(2,057,352)	1,048,173	7,858,608	8,797,374

14

Astron Corporation Limited and its Subsidiaries

Company Number: 1687414

Notes to the Consolidated Financial Statements

For the Period Ended 31 December 2014

10 Earnings Per Share

(a) Reconciliation of earnings used in the calculation of earnings per share to loss/(profit):

	Consolidated	Consolidated
	31 December	31 December
	2014	2013
	$	$
(Loss)/profit attributable to owners	(398,545)	(2,778,783)
(Loss)/earnings used to calculate basic EPS	(398,545)	(2,778,783)
(Loss)/earnings used in calculation of dilutive EPS	(398,545)	(2,778,783)

(b) Weighted average number of ordinary shares (diluted):

		Consolidated	Consolidated
		31 December	31	December
		2014		2013
		No.		No.
Weighted average number of ordinary shares outstanding during the
year
-	used in calculating basic EPS	122,479,784	122,479,784

(c) Dilutive shares

There were no shares issued under escrow at or post year end. There were no rights or options for shares outstanding at year-end.

11 Inventories

	Consolidated
	31 December 30 June
	2014 $ 2014 $
Raw materials Finished goods – at cost Finished goods – at net realisable value Total finished goods Goods in transit Total	1,039,432 341,504
	- - 254,681 108,216
	254,681 108,216 149,851 60
	1,443,964 449,780

There is a provision for realisable value of $1,138,986 at period end ($1,370,110 as at 30 June 2014).

15

Astron Corporation Limited and its Subsidiaries

Company Number: 1687414

Notes to the Consolidated Financial Statements

For the Period Ended 31 December 2014

12 Intangible Assets

	Consolidated
Note	31 December 30 June
	2014 2014
	$ $
Development costs Cost 12(b) Accumulated impairment loss 12(b) Net carrying value 12(d) Exploration expenditure capitalized Exploration and evaluation phases 12(a)(c) Net carrying value Water rights Net carrying value 12(a)(d) Computer software Net carrying value 12(a) Total Intangibles 12(e)	11,751,740 11,168,022 (7,701,400) (7,553,253)
	4,050,340 3,614,769
	43,209,399 41,241,546
	43,209,399 41,241,546
	15,769,139 16,128,311 138,255 197,507
	63,167,133 61,182,133

(a) Intangible assets

Movements during the half year ended 31 December 2014 in intangible assets represent additions only. Amortisation has been brought to account where applicable. For capital expenditure commitments refer to note 5.

(b) Development costs and impairment losses

The development costs of $11,751,739 (FY 2014: $11,168,022) and the accumulated impairment of $7,701,400 (FY 2014: $7,553,253) as at 31 December 2014 relates to the following:

1. TiO2 project cost of $7,275,278 (FY 2014:$7,127,132) was fully impaired in 2009. The current year movement represents the movement in foreign exchange.

2. The Senegal project of $4,193,720 (FY 2014: $3,785,352) represents development costs incurred in Senegal. This was netted off by an impairment of $438,984 (FY 2014: $426,121) which was carried forward from prior years and shifted due to the movement in foreign exchange. That costs incurred in the prior years were fully impaired due to doubt as to whether the project will continue at that time. The current year additions represented the resumption of activities following the grant of the exploration license in June 2011.

3. The remaining balance of $295,604 (FY 2014: $255,538) relates to capitalised testing and design fees and shifted due to the movement in foreign exchange.

(c) Exploration and evaluation expenditure

This expenditure relates to the Group's investment in the Donald Mineral Sands Project. As at 31 December 2014 the Group has complied with the conditions of the granting of RL 2002 and RL 2003 (formerly EL4432, EL4433), EL5255, EL5263, EL5186, EL5261, EL5262, EL 5353 (currently pending Government approval as RL 2006), EL5354, EL5472 and ML5532. As such the Directors believe that the tenements are in good standing with the Department of Primary Industries in Victoria, who administers the Mineral Resources Development Act 1990.

The recoverability of the carrying amount of the exploration and evaluation assets is dependent upon the successful development and commercial exploitation or alternatively sale of the area of interest.

16

Astron Corporation Limited and its Subsidiaries

Company Number: 1687414

Notes to the Consolidated Financial Statements

For the Period Ended 31 December 2014

12 Intangible Assets (cont’d)

(d) Movement in net carrying value

	Consolidated
	Exploration and Evaluation Phase $ Development costs $ Water Rights $ Software $ Total $
Half-Year ended 31 December 2014 Opening balance Additions Amortisation Foreign exchange movements Balance at 31 December 2014 Year ended 30 June 2014 Opening balance Additions Amortisation Foreign exchange movements Balance at 30 June 2014	41,241,546 3,614,769 16,128,311 197,507 61,182,133
	1,967,854 377,812 - - 2,345,666 - - (359,172) (59,252) (418,424) - 57,758 - - 57,758
	43,209,400 4,050,339 15,769,139 138,255 63,167,133
	35,942,139 2,030,369 17,958,613 316,011 56,247,132
	5,299,407 1,590,378 - - 1,590,378 - - (1,830,302) (118,504) (1,948,806) - (5,978) - - (5,978)
	41,241,546 3,614,769 16,128,311 197,507 61,182,133

(e) Finite lives

Intangible assets, other than goodwill have finite useful lives. To date no amortisation has been charged in respect of intangible assets due to the stage of development for each project.

17

Astron Corporation Limited and its Subsidiaries

Company Number: 1687414

Notes to the Consolidated Financial Statements

For the Period Ended 31 December 2014

13 Property, Plant & Equipment

	Consolidated
Note	31 December 30 June
	2014 2014
	$ $
Land & Buildings Land at cost Total land 13(a) Leasehold buildings Accumulated impairment loss Net carrying value 13(a) Plant and equipment and works in progress Capital works in progress Less accumulated impairment loss Total capital works in progress 13(a) Plant and equipment Less accumulated depreciation Total plant and equipment 13(a) Totalproperty, plant and equipment	5,254,000 5,254,000
	5,254,000 5,254,000
	10,622,679 2,314,893 (450,578) (369,613)
	10,172,101 3,614,769
	9,366,607 14,942,658 (2,333,675) (2,017,372)
	7,032,932 12,925,286
	2,503,190 2,348,432 (1,881,753) (1,622,551)
	621,437 725,881
	23,080,470 20,850,447

(a) Movement in net carrying value

	Consolidated
	Captial works in progress $ Land $ Buildings $ Plant and Equipment $ Total $
Half-Year ended 31 December 2014 Opening balance Additions Depreciation Transfers Disposals Foreign exchange movements Balance at 31 December 2014 Year ended 30 June 2014 Opening balance Additions Depreciation Foreign exchange movements Balance at 30 June 2014	12,925,286 5,254,000 1,945,280 725,882 20,850,448
	25,925 - - 14,767 40,692 - - (21,048) (76,765) (97,813) (7,944,834) - 7,944,834 - - - - - (14,192) (14,192) 2,026,555 - 303,035 (28,255) 2,301,333
	7,032,932 5,254,000 10,172,101 621,436 23,080,470
	12,864,593 5,248,417 2,031,508 947,364 21,091,882
	354,761 5,583 - 189,952 550,296 - - (40,886) (341,437) (382,323) (294,068) - (45,342) (69,997) (409,407)
	12,925,286 5,254,000 1,945,280 725,882 20,850,448

18

Astron Corporation Limited

Company Number: 1687414

Declaration by Directors

The directors of the Company declare that:

1. The consolidated financial statements, comprising the consolidated statement of comprehensive income, consolidated statement of financial position, consolidated statement of cash flows, consolidated statement of changes in equity, accompanying notes, as set out on pages 5 to 18,

2. (a) comply with Accounting Standard IAS 34 Interim Financial Reporting ; and

3. (b) give a true and fair view of the financial position of the consolidated entity as at 31 December 2014 and of its performance for the half year ended on that date.

4. 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.

This declaration is made in accordance with a resolution of the Board of Directors and is signed for and on behalf of the Directors by:

Chairman

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Mr Gerard King

Dated 26[th] February 2015

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Level 17, 383 Kent Street Sydney NSW 2000

Correspondence to: Locked Bag Q800 QVB Post Office Sydney NSW 1230 T +61 2 8297 2400 F +61 2 9299 4445 E info.nsw@au.gt.com W www.grantthornton.com.au

Independent Auditor’s Review Report To the Members of Astron Corporation Limited

We have reviewed the accompanying half-year financial report of Astron Corporation Limited (“Company”), which comprises the consolidated financial statements being the statement of financial position as at 31 December 2014, and the statement of profit or loss and other comprehensive income, statement of changes in equity and statement of cash flows for the half-year ended on that date, notes comprising a statement or description of accounting policies, other explanatory information and the directors’ declaration of the consolidated entity, comprising both the Company and the entities it controlled at the halfyear’s end or from time to time during the half-year.

Directors’ responsibility for the half-year financial report

The directors of Astron Corporation Limited are responsible for the preparation of the halfyear financial report that gives a true and fair view in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board (IASB) and other authoritative pronouncements of the IASB and for such controls 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 consolidated half-year financial report based on our review. We conducted our review in accordance with the Auditing Standard on Review Engagements ASRE 2410 Review of a Financial Report 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 International Financial Reporting Standards and other authoritative pronouncements of the IASB including: giving a true and fair view of the consolidated entity’s financial position as at 31 December 2014 and its performance for the

Grant Thornton Audit Pty Ltd ACN 130 913 594 a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389

‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or refers to one or more member firms, as the context requires. Grant Thornton Australia Ltd is a member firm of Grant Thornton International Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one another and are not liable for one another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to Grant Thornton Australia Limited ABN 41 127 556 389 and its Australian subsidiaries and related entities. GTIL is not an Australian related entity to Grant Thornton Australia Limited.

Liability limited by a scheme approved under Professional Standards Legislation. Liability is limited in those States where a current scheme applies.

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half-year ended on that date; and complying with Accounting Standard IAS 34 Interim Financial Reporting. As the auditor of Astron Corporation 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 other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Financial Reporting 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.

Independence

In conducting our review, we complied with the independence requirements of the Accounting Professional and Ethical Standards Board.

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 Astron Corporation Limited is not:

• a giving a true and fair view of the consolidated entity’s financial position as at 31 December 2014 and of its performance for the half-year ended on that date; and

• b complying with Accounting Standard IAS 34 Interim Financial Reporting, International Financial Reporting Standards and other authoritative pronouncements of the IASB.

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GRANT THORNTON AUDIT PTY LTD Chartered Accountants

L M Worsley Partner - Audit & Assurance

Sydney, 26 February 2015

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