Skip to main content

AI assistant

Sign in to chat with this filing

The assistant answers questions, extracts KPIs, and summarises risk factors directly from the filing text.

ENERGY METALS LTD Interim / Quarterly Report 2021

Sep 8, 2021

64845_rns_2021-09-08_e9f84d12-3c0d-40e2-bc79-6571dd0e4136.pdf

Interim / Quarterly Report

Open in viewer

Opens in your device viewer

==> picture [448 x 180] intentionally omitted <==

ABN 63 111 306 533

HALF-YEAR FINANCIAL REPORT FOR THE HALF-YEAR ENDED 30 JUNE 2021

CORPORATE DIRECTORY

DIRECTORS

Fei He (Non-executive Chairman) Shuqing Xiao (Managing Director) Lindsay Dudfield (Non-executive Director) Jan Macpherson (Non-executive Director) Zhe Xu (Non-executive Director) Jun Zhou (Non-executive Director) Zhe Gao (Non-executive Director)

REGISTERED OFFICE

Level 2, 5 Ord Street WEST PERTH WA 6005

POSTAL ADDRESS

PO Box 1323 WEST PERTH WA 6872

AUDITORS

BDO Audit (WA) Pty Ltd 38 Station Street Subiaco WA 6008

SHARE REGISTRY

Automic Pty Ltd Level 2, 267 St Georges Terrace PERTH WA 6000 Telephone: + 61 1300 288 664

CONTACT DETAILS

Website www.energymetals.net Email: [email protected] Telephone: + 61 8 9322 6904 Facsimile: + 61 8 9321 7950

COMPANY SECRETARY

Xuekun Li

STOCK EXCHANGE LISTING

Australian Securities Exchange ASX Code: EME

SOLICITORS

Minter Ellison Allendale Square 77 St George’s Terrace PERTH WA 6000

BANKERS

National Australia Bank 100 St Georges Terrace PERTH WA 6000

DIRECTORS’ REPORT

Your Directors present the financial statements of Energy Metals Limited (“the company”) and its controlled entity (“the group”) for the half-year ended 30 June 2021.

DIRECTORS

The names of the Directors in office during the half-year and up to the date of this report are as follows. Directors were in office for this entire period unless otherwise stated:

Fei He (Non-executive Chairman) Shuqing Xiao (Managing Director) Lindsay George Dudfield (Non-executive Director) Jan Macpherson (Non-executive Director) Zhe Xu (Non-executive Director) Zhe Gao (Non-executive Director) Jun Zhou (Non-executive Director, appointed 26 March 2021) Junmei Xu (Non-executive Director, resigned 26 March 2021)

REVIEW OF OPERATIONS

The group reported a consolidated loss of $382,076 for the half-year ended 30 June 2021 (2020: a consolidated loss of $394,758).

Energy Metals is a dedicated uranium exploration company with eight projects located in the Northern Territory (NT) and Western Australia covering over 2,400 km². Most of the projects contain uranium mineralisation discovered by major companies in the 1970’s, including the advanced Bigrlyi project, located in the prospective Ngalia Basin (NT). Bigrlyi is characterised by relatively high uranium grades (with vanadium credits) and excellent metallurgical recoveries.

The company’s exploration activities were affected by COVID-19-related travel and access restrictions, however, they were of a sufficient level to maintain the company’s tenements in good standing given the expenditure covenant relief measures provided by the NT Government during the period.

Bigrlyi Joint Venture (EME 72.39%)

The Bigrlyi exploration camp remained on a care and maintenance footing during the period and only minimum exploration activities were undertaken. Energy Metals’ focus this period was on the optimisation of various aspects of the pre-feasibility study including an update of the mineralisation model, and geotechnical and mining design reviews in order to improve the economics of Bigrlyi project.

Ngalia Regional Project (EME 100%)

During the half-year only minimum exploration activities were conducted due to the COVID-19-related suspension of fieldwork programs. Exploration work was limited to desk-top studies including a geological review and completion of an exploration database update.

Malawiri Joint Venture (EME 76.03%)

Minimum exploration activities were undertaken in the current half-year to ensure the tenements remained in good standing.

Walbiri Joint Venture (EME 77.12%)

Minimum exploration activities were undertaken in the current half-year to ensure the tenements remained in good standing.

Western Australia

The company’s strategy is to maintain tenure over its Western Australian uranium deposits with minimum expenditure until economic conditions improve and WA Government restrictions on uranium mining are lifted. Four projects are covered by granted Retention Licences and one, the Manyingee East project, by a Retention Licence application. Landholder objections to the grant of the Manyingee East application is progressing through the Warden’s Court process. Energy Metals continues to monitor the situation with a view to recommencing exploration and development activities in the future.

1

DIRECTORS’ REPORT

AUDITOR’S INDEPENDENCE DECLARATION

A copy of the auditors’ independence declaration as required under section 307C of the Corporations Act 2001 is set out on the page 13 of this half-year financial report.

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

==> picture [67 x 29] intentionally omitted <==

Shuqing Xiao Managing Director 9 September 2021

2

DIRECTORS’ DECLARATION

In the Directors’ opinion:

The financial statements, and notes set out on pages 4 to 12 are in accordance with the Corporations Act 2001 , including:

  • i) 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; and

  • ii) in the directors’ opinion, the attached financial statements and notes thereto are in accordance with the Corporations Act 2001 , including compliance with accounting standards and giving a true and fair view of the financial position and performance of the consolidated entity.

Signed in accordance with a resolution of the directors made pursuant to s.303 (5) of the Corporations Act 2001.

==> picture [71 x 28] intentionally omitted <==

Shuqing Xiao, Managing Director 9 September 2021

3

CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE HALF-YEAR ENDED 30 JUNE 2021

Notes
Revenue from continuing operations
4
Employee benefits expense
4
Exploration expense
Corporate and regulatory expense
Depreciation expense
4
Administration expense
4
Finance costs
Loss before income tax
Income tax expense
Loss for the period
Total comprehensive expense for the period
Loss attributable to owners of the company
Total comprehensive expense attributable to owners of
the company
Basic loss per share (cents)
Diluted loss per share (cents)
30/06/2021
$ 51,083
(182,794)
(40,324)
(93,117)
(26,341)
(88,930)
(1,653)
(382,076)
-
(382,076)
(382,076)
(382,076)
(382,076)
(0.18)
(0.18)
30/06/2020
$
148,593
(217,179)
(120,000)
(85,717)
(39,273)
(77,742)
(3,440)
(394,758)
-
(394,758)
(394,758)
(394,758)
(394,758)
(0.19)
(0.19)

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

4

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2021

Notes
Current assets
Cash and cash equivalents
Term deposits
6
Trade and other receivables
Other financial asset
Total current assets
Non-current assets
Plant and equipment
7
Exploration and evaluation expenditure
8
Total non-current assets
Total assets
Current liabilities
Trade and other payables
Lease payable due within one year
Provisions
Total current liabilities
Non-current liabilities
Lease payable
Total non-current liabilities
Total liabilities
Net assets
Contributed equity
9
Accumulated losses
Total equity
30/06/2021
$ 493,705
15,211,517
53,814
160,332
15,919,368
126,357
35,185,291
35,311,648
51,231,016
48,117
-
69,564
117,681
-
-
117,681
51,113,335
59,051,644
(7,938,309)
51,113,335
31/12/2020
$
540,662
15,724,509
71,139
161,704
16,498,014
260,849
35,033,878
35,294,727
51,792,741
89,301
54,127
77,369
220,797
76,533
76,533
297,330
51,495,411
59,051,644
(7,556,233)
51,495,411

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

5

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE HALF YEAR ENDED 30 JUNE 2021

At 1 January 2020
Loss for the period
Total comprehensive expense for the period
At 30 June 2020
At 1 January 2021
Loss for the period
Total comprehensive expense for the period
At 30 June 2021
Attributable to Owners of the Company
Contributed
Equity
$ Accumulated
Losses
$ Total Equity
$
59,051,644
(6,729,277)
52,322,367
-
(394,758)
(394,758)
-
(394,758)
(394,758)
59,051,644
(7,124,035)
51,927,609
59,051,644
(7,556,233)
51,495,411
-
(382,076)
(382,076)
-
(382,076)
(382,076)
59,051,644
(7,938,309)
51,113,335

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

6

CONDENSED CONSOLIDATED STATEMENT OF CASHFLOWS FOR THE HALF YEAR ENDED 30 JUNE 2021

Cash flows from operating activities
Interest received
Joint Venture management fee received
Payments to suppliers and employees
Payments to exploration operation
Net cash used in operating activities
Cash flows from investing activities
Payments for plant and equipment
Payments for exploration and expenditure
Proceeds from term deposits
Investments in term deposits
Net cash provided by investing activities
Cash flows from financing activities
Payments of lease liabilities
Net cash used in financing activities
Net increase in cash and cash equivalents
Cash and cash equivalents at the beginning of the period
Cash and cash equivalents at the end of the period
30/06/2021
$ 51,242
1,961
(406,789)
(40,324)
(393,910)
-
(149,608)
15,886,214
(15,371,850)
364,756
(17,803)
(17,803)
(46,957)
540,662
493,705
30/06/2020
$
157,250
3,096
(317,749)
(120,000)
(277,403)
54,029
(139,295)
16,931,906
(16,359,859)
486,781
(79,773)
(79,773)
129,605
454,549
584,154

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

7

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF YEAR ENDED 30 JUNE 2021

NOTE 1: BASIS OF PREPARATION OF HALF-YEAR REPORT

Statement of compliance

The half-year financial report is a general purpose financial report prepared in accordance with the Corporations Act 2001 and AASB134 ‘ Interim Financial Reporting’ . Compliance with AASB 134 ensures compliance with International Financial Reporting Standards IAS 34 ‘ Interim Financial Reporting’ . The half-year report does not include notes of the type normally included in an annual financial report and shall be read in conjunction with the most recent annual financial report.

Basis of preparation

The condensed consolidated financial statements have been prepared on the basis of historical cost, except for the revaluation of certain non-current assets and financial instruments. Cost is based on the fair value of the consideration given in exchange for assets. All amounts are presented in Australian dollars, unless otherwise noted.

The accounting policies and methods of computation adopted in the preparation of the half-year financial report are consistent with those adopted and disclosed in the company’s 2020 annual financial report for the year ended 31 December 2020, except for the impact of the Standards and Interpretations described below. These accounting policies are consistent with Australian Accounting Standards and with International Financial Reporting Standards.

Coronavirus (COVID-19) pandemic

The Directors have considered the impact of the COVID19 pandemic on the position of the group at 30 June 2021 and its operations in future periods.

Judgement has been exercised in considering the impacts that the Coronavirus (COVID-19) pandemic has had, or may have, on known information. This consideration extends to the nature of business, supply chain, staffing and geographic regions in which the entity operates. Other than as addressed in specific notes, there does not currently appear to be either any significant impact upon the financial statements or any significant uncertainties with respect to events or conditions which may impact the consolidated entity unfavourably as at the reporting date or subsequently as a result of the Coronavirus (COVID-19) pandemic.

NOTE 2: NEW ACCOUNTING STANDARDS AND INTERPRETATIONS

For the half-year ended 30 June 2021, the Group has reviewed all of the new and revised Standards and Interpretations issued by the Australian Accounting Standards Board (the AASB) that are relevant to its operations and effective for annual reporting periods beginning on or after 1 January 2021. The Group has not early adopted any standard, interpretation or amendment that has been issued but is not yet effective.

New and revised Accounting Standards in issue not yet adopted

At the date of authorisation of the Financial Statements, the Standards applicable to the group’s business listed below were in issue but not yet effective. The potential effect of the revised Standards on the group’s financial statements has not yet been determined.

AASB 2014-10 Amendments to Australian Accounting Standards – Sale or Contribution of Assets between an Investor and its Associate or Joint Venture and AASB 2015-10 Amendments to Australian Accounting Standards – Effective Date of Amendments to AASB 10 and AASB 128 and AASB2017-5 Amendments to Australian Accounting Standards-Effective Date of Amendments to AASB10 and AASB128 and Editorial Corrections, effective for annual reporting periods beginning on or after 1 January 2022;

AASB 2020-1 Amendments to Australian Accounting Standards – Classification of Liabilities as Current or NonCurrent, effective for annual reporting periods beginning on or after 1 January 2022;

AASB 2020-3 Amendments to Australian Accounting Standards – Annual Improvements 2018-2020 and Other Amendments, effective for annual reporting periods beginning on or after 1 January 2022;

AASB 2021-2 Amendments to Australian Accounting Standards – Disclosure of Accounting Policies and Definition of Accounting Estimates, effective for annual reporting periods beginning on or after 1 January 2023.

8

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF YEAR ENDED 30 JUNE 2021

NOTE 3: SEGMENT INFORMATION

Management has determined that the group has only one reportable segment as uranium exploration. As the group are focused on uranium exploration, the Board periodically monitors the group based on actual versus budgeted exploration expenditure incurred by area of interest. This internal reporting framework is most relevant to assist the Board with making decisions regarding the ongoing exploration programmes and activities, while also taking into consideration the results of exploration work that has been performed to date. The segment information provided to the board for the reportable segments for the half-year ended 30 June 2020 and 30 June 2021 is as follows:

30 June 2021
Total segment revenue
Segment result
Depreciation expense, included in the
segment result
Total segment assets
Total segment assets include:
Additions to plant and equipment
Additions to exploration and evaluation
expenditure
Total segment liabilities
30 June 2020
Total segment revenue
Segment result
Depreciation expense, included in the
segment result
Total segment assets
Total segment assets include:
Additions to plant and equipment
Additions to exploration and evaluation
expenditure
Total segment liabilities
Uranium
Exploration
$ Unallocated
$ Total
$
2,360
48,723
51,083
(45,384)
(336,692)
(382,076)
(8,208)
(18,133)
(26,341)
35,306,825
15,924,191
51,231,016
-
-
-
151,413
-
151,413
24,148
93,533
117,681
3,096
145,497
148,593
(127,085)
(267,673)
(394,758)
(10,181)
(29,092)
(39,273)
35,091,052
17,216,359
52,307,411
-
-
-
303,063
-
303,063
87,706
292,096
379,802

9

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF YEAR ENDED 30 JUNE 2021

NOTE 4: REVENUES AND EXPENSES

(a) Revenue from continuing operations includes the
following revenue items:
Interest received from other parties
Joint Venture management fee received
Other income received
(b) Loss includes the following specific expenses:
Depreciation
(c) Employee benefit expense:
Wages & superannuation
Annual leave expense
Long service leave expense
Directors’ fee
(d) Administration expense
Office related
Others
30 June 2021
$ 30 June 2020
$
43,741
145,497
2,360
3,096
4,982
-
51,083
148,593
26,341
39,273
178,098
193,414
5,016
3,682
(12,820)
1,333
12,500
18,750
182,794
217,179
31,009
22,210
57,921
55,532
88,930
77,742

NOTE 5: DIVIDENDS

There were no dividends paid or declared by the company during the period.

NOTE 6: TERM DEPOSITS

As at 30 June 2021, the group had approximately $15.2 million on deposit with maturities from 9 months to 12 months with various financial institutions earning interest at an average rate of 0.3% (2020: 1.3%).

10

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF YEAR ENDED 30 JUNE 2021

NOTE 7: PLANT AND EQUIPMENT

Plant and equipment - at cost
Less accumulated depreciation
Motor vehicle – at cost
Less accumulated depreciation
Right-of-use asset – at cost
Less accumulated depreciation
Total
Reconciliation of the carrying amount of
Plant and Equipment:
Carrying amount at 1 January 2020
Depreciation expense
Carrying amount at 30 June 2020
Carrying amount at 1 January 2021
Disposals
Depreciation expense
Carrying amount at 30 June 2021
30 June 2021
$ 31 December 2020
$ 931,878
931,878
(813,232)
(804,110)
118,646
127,768
66,839
66,839
(59,128)
(58,340)
7,711
8,499
-
232,640
-
(108,058)
-
124,582
126,357
260,849
Plant and
Equipment
$ Motor
Vehicle
$ Right-of-use
Asset
$ Total
$
30 June 2021
$ 31 December 2020
$ 931,878
931,878
(813,232)
(804,110)
118,646
127,768
66,839
66,839
(59,128)
(58,340)
7,711
8,499
-
232,640
-
(108,058)
-
124,582
126,357
260,849
Plant and
Equipment
$ Motor
Vehicle
$ Right-of-use
Asset
$ Total
$
149,487
10,467
178,611
(11,283)
(976)
(27,014)
338,565
(39,273)
138,204
9,491
151,597
299,292
127,768
8,499
124,582
-
-
(108,151)*
(9,122)
(788)
(16,431)
260,849
(108,151)
(26,341)
118,646
7,711
-
126,357

*The group leased office space for its corporate office. The lease agreement had a fixed term of 3 years with an extension option of further 2 years. The extension option was not exercised and the lease was terminated in April 2021.

NOTE 8: EXPLORATION AND EVALUATION EXPENDITURE

Balance at the beginning of the half-year
Additions of exploration assets
Exploration assets taken to Profit or Loss
Balance at the end of the half-year
30 June 2021
$ 31 December 2020
$ 35,033,878
34,751,061
151,413
334,202
-
(51,385)
35,185,291
35,033,878

The balance carried forward represents projects in the exploration and evaluation phase.

Ultimate recoupment of exploration expenditure carried forward is dependent on successful development and commercial exploitation, or alternatively, sale of respective areas.

11

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF YEAR ENDED 30 JUNE 2021

NOTE 9: CONTRIBUTED EQUITY

As at 1 January 2021 and 30 June 2021 Number ofShares
$
209,683,312
59,051,644

Ordinary Shares

Ordinary shares entitled the holder to participate in dividends and the proceeds on winding up of the company in proportion to the number of and amounts paid on the shares held.

On a show of hands every holder of ordinary shares present at a meeting in person or by proxy, is entitled to one vote, and upon a poll each share is entitled to one vote.

Ordinary shares have no par value and the company does not have a limited amount of authorised capital.

NOTE 10: CONTINGENCIES

Claims of Native Title

The company has been notified by the Native Title Tribunal of native title claims which cover some of the company’s licence holdings. Until further information arises in relation to the claims and its likelihood of success, the company is unable to assess the likely effect, if any, of the claims.

NOTE 11: COMMITMENTS

The group is required to maintain current rights of tenure to tenements, which require outlays of expenditure in 2021/2022. Under certain circumstances these commitments are subject to the possibility of adjustment to the amount and/or timing of such obligations, however, they are expected to be fulfilled in the normal course of operations.

Estimated expenditure on mining, exploration and
prospecting leases
30 June 2021
31 December 2020
$ $ 337,006
402,385
337,006
402,385

NOTE 12: KEY MANAGEMENT PERSONNEL

Remuneration arrangements of key management personnel are disclosed in the annual financial report.

NOTE 13: SUBSEQUENT EVENTS

NT Energy Pty Ltd, the wholly owned subsidiary of Energy Metals Limited, which had been dormant for years, applied for voluntary deregistration subsequent to the period end. ASIC confirmed deregistration on the company on 28 July 2021.

The impact of the Coronavirus (COVID-19) pandemic is ongoing and while it has been no material impact on the group’s financial position and operation up to 30 June 2021, it is not practicable to estimate the potential impact, positive or negative, after the reporting date. The situation is rapidly developing and is dependent on measures imposed by the Australian Government and other countries, such as maintaining social distancing requirements, quarantine, travel restrictions and any economic stimulus that may be provided.

There were no matters or circumstances arising since the end of the reporting period that have significantly affected or may significantly affect the operations of the group and the results of those operations or the state of the affairs of the group in the financial period subsequent to 30 June 2021.

12

38 Station Street Subiaco, WA 6008 PO Box 700 West Perth WA 6872 Australia

Tel: +61 8 6382 4600 Fax: +61 8 6382 4601 www.bdo.com.au

==> picture [78 x 31] intentionally omitted <==

DECLARATION OF INDEPENDENCE BY GLYN O'BRIEN TO THE DIRECTORS OF ENERGY METALS LIMITED

As lead auditor for the review of Energy Metals Limited for the half-year ended 30 June 2021, I declare that, to the best of my knowledge and belief, there have been:

  1. No contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the review; and

  2. No contraventions of any applicable code of professional conduct in relation to the review.

This declaration is in respect of Energy Metals Limited and the entities it controlled during the period.

==> picture [126 x 30] intentionally omitted <==

Glyn O’Brien

Director

BDO Audit (WA) Pty Ltd

Perth, 9 September 2021

BDO Audit (WA) Pty Ltd ABN 79 112 284 787 is a member of a national association of independent entities which are all members of BDO Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit (WA) Pty Ltd and BDO Australia Ltd are members of BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation.

Tel: +61 8 6382 4600 38 Station Street Fax: +61 8 6382 4601 Subiaco, WA 6008 www.bdo.com.au PO Box 700 West Perth WA 6872 Australia

==> picture [77 x 30] intentionally omitted <==

INDEPENDENT AUDITOR’S REVIEW REPORT

To the members of Energy Metals Limited

Report on the Half-Year Financial Report

Conclusion

We have reviewed the half-year financial report of Energy Metals Limited (the Company) and its subsidiaries (the Group), which comprises the consolidated statement of financial position as at 30 June 2021, the consolidated statement of profit or loss and other comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows for the halfyear ended on that date, a summary of significant accounting policies and other explanatory information, and the directors’ declaration.

Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the accompanying half-year financial report of the Group does not comply with the Corporations Act 2001 including:

  • (i) Giving a true and fair view of the Group’s financial position as at 30 June 2021 and of its financial performance for the half-year ended on that date; and

  • (ii) Complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001.

Basis for conclusion

We conducted our review in accordance with ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity . Our responsibilities are further described in the Auditor’s Responsibilities for the Review of the Financial Report section of our report. We are independent of the Company in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code) that are relevant to the audit of the annual financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.

We confirm that the independence declaration required by the Corporations Act 2001 which has been given to the directors of the Company, would be the same terms if given to the directors as at the time of this auditor’s review report.

Responsibility of the directors for the financial report

The directors of the Company are responsible for the preparation of the half-year financial report that gives a true and fair view in accordance with Australian Accounting Standards 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 gives a true and fair view and is free from material misstatement, whether due to fraud or error.

BDO Audit (WA) Pty Ltd ABN 79 112 284 787 is a member of a national association of independent entities which are all members of BDO Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit (WA) Pty Ltd and BDO Australia Ltd are members of BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation.

==> picture [78 x 31] intentionally omitted <==

Auditor’s responsibility for the review of the financial report

Our responsibility is to express a conclusion on the half-year financial report based on our review. ASRE 2410 requires us to conclude whether 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 Group’s financial position as at 30 June 2021 and its financial performance for the half-year ended on that date and complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001 .

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 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.

BDO Audit (WA) Pty Ltd

==> picture [133 x 43] intentionally omitted <==

Glyn O’Brien

Director

Perth, 9 September 2021