DGR GLOBAL LIMITED — Interim / Quarterly Report 2020

Apr 29, 2020

Rule 5.5

Appendix 5B

Mining exploration entity or oil and gas exploration entity quarterly cash flow report

quarterly cash	quarterly cash	flow report
Name of entity
DGR Global Limited
ABN		Quarter ended (“current	quarter”)
67 052	354 837	31 March 2020
Consolidated statement of cash flows		Current quarter	Year to date
		$A’000	(9 months)
			$A’000
1.	Cash flows from operating activities
1.1	Receipts from customers	276	772
1.2	Payments for
	(a) exploration & evaluation (if expensed)	-	-
	(b) development	-	-
	(c) production	-	-
	(d) staff costs	(439)	(1,698)
	(e) administration and corporate costs	(234)	(1,694)
1.3	Dividends received (see note 3)	-	-
1.4	Interest received	100	647
1.5	Interest and other costs of finance paid	(304)	(910)
1.6	Income taxes paid	-	-
1.7	Government grants and tax incentives	-	-
1.8	Other (provide details if material)	-	-
1.9	Net cash from / (used in) operating
	activities	(601)	(2,883)

ASX Listing Rules Appendix 5B (01/12/19) + See chapter 19 of the ASX Listing Rules for defined terms.

Page 1

Appendix 5B

Mining exploration entity or oil and gas exploration entity quarterly cash flow report

==> picture [457 x 4] intentionally omitted <==

2.	Cash flows from investing activities
2.1	Payments to acquire:
	(a) entities	-	-
	(b) tenements	-	-
	(c) property, plant and equipment	-	(2)
	(d) exploration & evaluation (if capitalised)	(248)	(2,562)
	(e) investments	-	(876)
	(f) other non-current assets	-	-
2.2	Proceeds from the disposal of:
	(a) entities	-	-
	(b) tenements	-	-
	(c) property, plant and equipment	-	-
	(d) investments	228	4,452
	(e) other non-current assets	-	-
2.3	Cash flows from loans to other entities	(119)	(170)
2.4	Dividends received (see note 3)	-	-
2.5	Other (security deposits)	4	1,220
2.6	Net cash from / (used in) investing
	activities	(135)	2,062
3.	Cash flows from financing activities
3.1	Proceeds from issues of equity securities
	(excluding convertible debt securities)	-	20
3.2	Proceeds from issue of convertible debt
	securities	-	-
3.3	Proceeds from exercise of options	-	-
3.4	Transaction costs related to issues of equity
	securities or convertible debt securities	-	-
3.5	Proceeds from borrowings	-	-
3.6	Repayment of borrowings	-	-
3.7	Transaction costs related to loans and
	borrowings	-	-
3.8	Dividends paid	-	-
3.9	Other (provide details if material)	-	-
3.10	Net cash from / (used in) financing
	activities	-	20

ASX Listing Rules Appendix 5B (01/12/19) + See chapter 19 of the ASX Listing Rules for defined terms.

Page 2

Appendix 5B

Mining exploration entity or oil and gas exploration entity quarterly cash flow report

4.	Net increase / (decrease) in cash and
	cash equivalents for the period	(736)	(801)
4.1	Cash and cash equivalents at beginning of
	period	1,607	1,672
4.2	Net cash from / (used in) operating
	activities (item 1.9 above)	(601)	(2,883)
4.3	Net cash from / (used in) investing activities
	(item 2.6 above)	(135)	2,062
4.4	Net cash from / (used in) financing activities
	(item 3.10 above)	-	20
4.5	Effect of movement in exchange rates on
	cash held	-	-
4.6	Cash and cash equivalents at end of
	period	871	871
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	871	1,607
5.2	Call deposits	-	-
5.3	Bank overdrafts	-	-
5.4	Other (provide details)	-	-
5.5	Cash and cash equivalents at end of
	quarter (should equal item 4.6 above)	871	1,607
6.	Payments to related parties of the entity	and their	Current quarter
	associates		$A'000
6.1	Aggregate amount of payments to related parties and their
	associates included in item 1		-
6.2	Aggregate amount of payments to related parties and their
	associates included in item 2		1191

Note: if any amounts are shown in items 6.1 or 6.2, your quarterly activity report must include a description of, and an explanation for, such payments

1During the quarter DGR Global Ltd advanced $119k to Aus Tin Mining Limited for operating costs by way of a loan. The loan is unsecured and accrues interest at the rate charged by the bankers for Aus Tin on any overdraft accommodation for an amount of $100,000 or more (currently 3.86%p.a.) and shall be capitalised and only repayable when the funding is repaid. The loan is repayable on the earlier of the completion of a successful capital raising event or 12 months.

ASX Listing Rules Appendix 5B (01/12/19) + See chapter 19 of the ASX Listing Rules for defined terms.

Page 3

Appendix 5B Mining exploration entity or oil and gas exploration entity quarterly cash flow report

7.	Financing facilities Total facility	Amount drawn at
	Note: the term “facility’ includes all forms of financing arrangements available to the entity. Add notes as necessary for an understanding of the sources of finance available to the entity. amount at quarter end $A’000	quarter end $A’000
7.1	Loan facilities -	-
7.2	Credit standby arrangements -	-
7.3	Other (Convertible notes) 10,000	10,000
7.4	Total financing facilities 10,000	10,000
7.5	Unused financing facilities available at quarter end	-
7.6	Include in the box below a description of each facility above, including	the lender, interest
	rate, maturity date and whether it is secured or unsecured. If any additional financing
	facilities have been entered into or are proposed to be entered into after quarter end,
	include a note providing details of those facilities as well.
The	principal terms of the convertible notes referred to above are as follows:

Number of notes issued: 50,000,000 Issue price: Face value of $0.20 per convertible note Interest rate: 12% per annum Interest payments: Interest paid quarterly in arrears. Interest is payable as cash. Maturity date: 26 September 2020 Conversion terms: Convertible at any time at the Convertible Note holder’s election into one ordinary share in DGR based on a price of $0.20 per share, subject to usual adjustment mechanisms in certain circumstances. As a result of the adjustment mechanism the fixed-for-fixed test is not met therefore the convertible notes are carried at fair value through profit or loss. Security: Secured by DGR’s shareholding in IronRidge Resources.

8.	Estimated cash available for future operating activities	$A’000
8.1	Net cash from / (used in) operating activities (Item 1.9)		(601)
8.2	Capitalised exploration & evaluation (Item 2.1(d))		(244)
8.3	Total relevant outgoings (Item 8.1 + Item 8.2)		(845)
8.4	Cash and cash equivalents at quarter end (Item 4.6)		871
8.5	Unused finance facilities available at quarter end (Item 7.5)		-
8.6	Total available funding (Item 8.4 + Item 8.5)		-
8.7	Estimated quarters of funding available (Item 8.6 divided by		1.03
	Item 8.3)

ASX Listing Rules Appendix 5B (01/12/19) + See chapter 19 of the ASX Listing Rules for defined terms.

Page 4

Appendix 5B

Mining exploration entity or oil and gas exploration entity quarterly cash flow report

==> picture [458 x 4] intentionally omitted <==

• 8.8 If Item 8.7 is less than 2 quarters, please provide answers to the following questions:

• Does the entity expect that it will continue to have the current level of net operating cash flows for the time being and, if not, why not?

• Answer: No, the Company is implementing a range of measures in light of the Company’s treasury and as a response to the COVID-19 situation to reduce its cash expenditures.

==> picture [423 x 4] intentionally omitted <==

1. Has the entity taken any steps, or does it propose to take any steps, to raise further cash to fund its operations and, if so, what are those steps and how likely does it believe that they will be successful?

2. Answer: Yes, as announced 28 April 2020, the Company is undertaking a fully underwritten accelerated non-renounceable rights issue to raise approximately $5.67 million (before costs). Due to the underwritten nature of the rights issue the Company is extremely confident this raising initiative will be successful.

==> picture [423 x 5] intentionally omitted <==

1. Does the entity expect to be able to continue its operations and to meet its business objectives and, if so, on what basis?

2. Answer: Yes, for the reasons outlined in Questions 1 and 2, the Company expects to have further working capital in due course via the successful closing of the rights issue. Additionally, the Company has the ability to sell down on its investments in listed entities and corporate bonds if and when required to meet certain cash flow requirements.

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.

Date: 30 April 2020

Authorised by: The Board of Directors

(Name of body or officer authorising release – see note 4)

Notes

1. This quarterly cash flow report and the accompanying activity report provide a basis for informing the market about the entity’s activities for the past quarter, how they have been financed and the effect this has had on its cash position. An entity that wishes to disclose additional information over and above the minimum required under the Listing Rules is encouraged to do so.

2. If this quarterly cash flow 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 cash flow 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. If this report has been authorised for release to the market by your board of directors, you can insert here: “By the board”. If it has been authorised for release to the market by a committee of your board of directors, you can insert here: “By the [ name of board committee – eg Audit and Risk Committee ]”. If it has been authorised for release to the market by a disclosure committee, you can insert here: “By the Disclosure Committee”.

5. If this report has been authorised for release to the market by your board of directors and you wish to hold yourself out as complying with recommendation 4.2 of the ASX Corporate Governance Council’s Corporate Governance Principles and Recommendations , the board should have received a declaration from its CEO and CFO that, in their opinion, the financial records of the entity have been properly maintained, that this report complies with the appropriate accounting standards and gives a true and fair view of the cash flows of the entity, and that their opinion has been formed on the basis of a sound system of risk management and internal control which is operating effectively.

ASX Listing Rules Appendix 5B (01/12/19) + See chapter 19 of the ASX Listing Rules for defined terms.

Page 5