GREENWING RESOURCES LTD — Annual Report 2019

Aug 29, 2019

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ABN 31 109 933 995

Appendix 4E- Preliminary Final Report For the year ended 30 June 2019

Bass Metals Limited and Controlled Entities Appendix 4E- Preliminary Final Report For the year ended 30 June 2019

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Table of Contents

Results for announcement to the market	3
Preliminary Consolidated Statement of Profit or Loss and Other Comprehensive Income	4
Preliminary Consolidated Statement of Financial Position	5
Preliminary Consolidated Statement of Changes in Equity	6
Preliminary Statement of Cash Flows	7
Preliminary selected Notes to the Financial Statements	8

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Bass Metals Limited and Controlled Entities Appendix 4E- Preliminary Final Report For the year ended 30 June 2019

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Name of entity

Bass Metals Limited

ABN 31 109 933 995

Results for announcement to the market

	$
Revenue from ordinary activities	1,328,326
Loss from ordinary activities after tax attributable to members	7,550,809
Net loss for theperiod attributable to members	7,550,809

		Franked
	Amount per	amount per
Dividend information	security	security
	Nil	Nil
Record date for determiningentitlements to the dividend		Nil

Key ratios	2019	2018
Basic earningsper share(cents)	(0.29)	(0.22)
Net tangible assetsper share(cents)	0.3	0.5

Previous corresponding period

The previous corresponding period is the 12 months ended 30 June 2018

Audit

This report is based on the consolidated financial statements which are in the process of being audited.

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Bass Metals Limited and Controlled Entities Appendix 4E- Preliminary Final Report For the year ended 30 June 2019

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PRELIMINARY CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2019

Note Revenue from contracts with customers Cost of sales Gross loss Other revenue 3 Other income 4 Administration expenses 5 Finance costs Foreign currency gain Loss before income tax from continuing operations Income tax expense Loss for the year from continuing operations Loss after tax from discontinued operations Loss for the year Other comprehensive income Items that may be reclassified subsequently to profit or loss Exchange differences on translating foreign operations Total comprehensive loss for the period, net of tax Loss attributed to: Continuing operations Discontinued operations 6 Total comprehensive loss attributed to: Equity holders of the parent entity Earnings per share Basic and diluted loss per share from operations (cents) 7	2019 $ 2018 $ 1,328,326 38,770 (3,340,010) (971,928)
	(2,011,684) (933,158) 55,537 28,444 151,922 225,000 (5,562,452) (3,949,594) (15,586) (112,062) 469,577 356,251
	(6,912,686) (4,385,119) - -
	(6,912,686) (4,385,119) (638,123) (63,059)
	(7,550,809) (4,448,178) (744,844) (367,667)
	(8,295,653) (4,815,845)
	(7,657,530) (4,752,786) (638,123) (63,059)
	(8,295,653) (4,815,845)
	(0.29) (0.22)

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

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Bass Metals Limited and Controlled Entities Appendix 4E- Preliminary Final Report For the year ended 30 June 2019

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PRELIMINARY CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2019

Note CURRENT ASSETS Cash and cash equivalents Trade and other receivables Inventories Other assets Total Current Assets NON-CURRENT ASSETS Restricted cash Trade and other receivables Property, Plant and equipment Exploration and evaluation assets Mine properties Total Non-Current Assets TOTAL ASSETS CURRENT LIABILITIES Trade and other payables Borrowings Total Current Liabilities NON-CURRENT LIABILITIES Borrowings 8 Provisions Total Non-Current Liabilities TOTAL LIABILITIES NET ASSETS EQUITY Issued capital Reserves Accumulated losses TOTAL EQUITY	2019 $ 2018 $ 1,561,212 4,604,427 789,163 424,998 1,617,927 1,203,602 109,841 57,497
	4,078,143 6,290,524
	10,801 18,300 680,500 680,500 5,472,453 5,265,782 1,786,942 894,146 5,700,438 5,489,100
	13,651,134 12,347,828
	17,729,277 18,638,352
	1,816,108 753,705 412,420 18,300
	2,228,528 772,005
	1,122,160 - 1,113,324 1,113,324
	2,235,484 1,113,324
	4,464,012 1,885,329
	13,265,265 16,753,023
	92,709,574 88,005,521 229,435 917,806 (79,673,744) (72,170,304)
	13,265,265 16,753,023

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

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Bass Metals Limited and Controlled Entities Appendix 4E- Preliminary Final Report For the year ended 30 June 2019

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PRELIMINARY CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2019

Share Capital $	Option Reserve Compound Interest Reserve Foreign Currency Translation Reserve Accumulated Losses Total Equity $ $ $ $ $
Balance at 1 July 2018 88,005,521	1,150,350 - (232,544) (72,170,304) 16,753,023
Comprehensive income
Loss for the period -	- - - (7,550,809) (7,550,809)
Other comprehensive loss -	- - (744,844) - (744,844)
Total comprehensive loss for the year -	- - (744,844) (7,550,809) (8,295,653)
Transactions with owners, recorded directly in equity
Shares issued during the period 4,835,875	- - - - 4,835,875
Options – value of options exercised 183,998	(183,998) - - - -
Options – value of options expired -	(47,369) - - 47,369 -
Convertible notes -	- 287,840 - - 287,840
Cost of shares issued forplacement (315,820)	- - - - (315,820)
Balance at 30 June 2019 92,709,574	918,983 287,840 (977,388) (79,673,744) 13,265,265
	Share Capital Option Reserve Foreign Currency Translation Reserve Accumulated Losses Total Equity $ $ $ $ $
Balance at 1 July 2017 Comprehensive income Loss for the period Other comprehensive loss Total comprehensive loss for the year Transactions with owners, recorded directly in equity Shares issued during the period Cost of shares issued for placement Balance at 30 June 2018	74,219,238 1,150,350 135,123 (67,722,126) 7,782,585 - - - (4,448,178) (4,448,178) - - (367,667) - (367,667)
	- - (367,667) (4,448,178) (4,815,845) 14,708,722 - - - 14,708,722 (922,439) - - - (922,439)
	88,005,521 1,150,350 (232,544) (72,170,304) 16,753,023

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

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Bass Metals Limited and Controlled Entities Appendix 4E- Preliminary Final Report For the year ended 30 June 2019

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PRELIMINARY CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2019

Cash flows from operating activities Receipts from customers Research and development grant Payments to suppliers and employees Net cash used in operating activities Cash flows from investing activities Purchase of property, plant and equipment Payment for exploration and evaluation assets Interest received Payment for deferred acquisition Net cash used in investing activities Cash flows from financing activities Proceeds from issue of shares Transaction costs on issue of shares Proceeds from issue of convertible notes Interest paid Net cash from financing activities Net increase in cash and cash equivalents Cash and cash equivalents at the beginning of the period Restricted cash Cash and cash equivalents at the end of the period	2019 $ 2018 $ 1,199,603 78,287 147,954 - (8,659,682) (4,934,972)
	(7,312,125) (4,856,685) (801,560) (3,592,740) (713,529) (415,482) 45,537 17,944 - (400,000)
	(1,469,552) (4,390,278) 4,695,007 12,036,241 (310,959) (544,874) 1,370,000 1,428,000 (15,586) (1,799)
	5,738,462 12,935,868 (3,043,215) 3,688,905 4,604,427 933,822 - (18,300)
	1,561,212 4,604,427

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

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Bass Metals Limited and Controlled Entities Appendix 4E- Preliminary Final Report For the year ended 30 June 2019

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1. Summary of significant accounting policies

These preliminary consolidated financial statements and notes represent those of Bass Metals Ltd (the “Company”) and it’s Controlled Entities (the “Group”). Bass Metals Ltd is the Group’s ultimate Parent Company (the “parent entity”) and is a public company incorporated and domiciled in Australia.

(a) Basis of Preparation

This preliminary financial report has been prepared in accordance with the Australian Securities Exchange Listing Rules as they relate to the Appendix 4E and in accordance with the recognition and measurement requirements of the Australian Accounting Standards, other authoritative pronouncements of the of the Australian Accounting Standards Board , Urgent Issues Group Interpretations and the Corporations Act 2001.

As such, this preliminary financial report does not include all the notes of the type included in the annual financial report and accordingly, should be read in conjunction with the annual report for the year ended 30 June 2019 and with any public announcements by Bass Metals Limited during the period in accordance with the continuous disclosure requirements of the Corporations Act 2001.

The principle accounting policies adopted in the preparation of the financial report are consistent with those of the previous financial year.

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Bass Metals Limited and Controlled Entities Appendix 4E- Preliminary Final Report For the year ended 30 June 2019

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2. Segment Information

Management currently identifies two service lines as the Group’s operating segments and all other activities are reported within the segment other. These operating segments are monitored by the Group’s chief operating decision maker and strategic decisions are made on the basis of adjusted segment operating results. All inter-segment transfers are carried out at arm’s length prices.

The measurement policies the Group uses for segment reporting under the Accounting Standards are the same as those used in its financial statements, except expenses relating to discontinuing operations are not included in arriving at the operating loss of the operating segments. There have been no other changes from prior periods in the measurement methods used to determine reported segment profit or loss.

Segment information for the reporting period is as follows:

2019 Graphite Mining Exploration - Lithium Other Total $ $ $ $ Revenue External customers - - 1,328,326 1,328,326 Interest income - - 45,537 45,537 Other income1 3,968 - 157,954 161,922 Inter- segment 1,330,246 - (1,330,246) - Segment revenues 1,334,214 - 201,571 1,535,785 EBITDAIX (4,868,301) (12,961) (1,715,233) (6,596,496) Less depreciation & amortisation (756,288) (12,653) (1,239) (770,180) Less interest - - (15,586) (15,586) Less foreign currency gains/(losses) (261,249) (6,149) 736,975 469,577 Segment loss before tax (5,885,839) (31,764) (995,083) (6,912,686) Segment assets 14,616,331 780,442 2,332,504 17,729,277 2018 Graphite Mining Exploration - Lithium Other Total $ $ $ $ Revenue External customers 1,439 - 37,331 38,770 Interest income - - 17,944 17,944 Other income 225,000 - 10,500 235,500 Inter- segment 37,331 - (37,331) - Segment revenues 263,770 - 28,444 292,214 EBITDAIX (2,261,574) (6,648) (2,069,919) (4,338,141) Less Depreciation & Amortisation (283,684) (91) (7,392) (291,167) Less interest - - (112,062) (112,062) Less Foreign currency gains/(losses) (62,442) 3,003 415,690 356,251 Segment loss before tax (2,607,700) (3,736) (1,773,683) (4,385,119) Segment assets 12,967,509 353,637 5,317,206 18,638,352 Note 1: Includes R&D refund of $147,954, sale of scrap metal of 3,968 and services income of $10,000. *EBITAIX - Segment earnings before interest, taxes, depreciation, amortisation, impairment, and foreign currency gains/(losses).	Graphite Mining	Exploration - Lithium	Other Total	Other Total
	$	$	$	$
	-	-	1,328,326	1,328,326
	-	-	45,537	45,537
	3,968	-	157,954	161,922
	1,330,246	-	(1,330,246)	-
	1,334,214	-	201,571	1,535,785
	(4,868,301)	(12,961)	(1,715,233)	(6,596,496)
	(756,288)	(12,653)	(1,239)	(770,180)
	-	-	(15,586)	(15,586)
	(261,249)	(6,149)	736,975	469,577
	(5,885,839)	(31,764)	(995,083)	(6,912,686)
	14,616,331	780,442	2,332,504	17,729,277
	Graphite Mining $	Exploration - Lithium $	Other Total $ $
	1,439 - 225,000 37,331	- - - -	37,331 38,770 17,944 17,944 10,500 235,500 (37,331) -
	263,770	-	28,444 292,214
	(2,261,574) (283,684) - (62,442)	(6,648) (91) - 3,003	(2,069,919) (4,338,141) (7,392) (291,167) (112,062) (112,062) 415,690 356,251
	(2,607,700)	(3,736)	(1,773,683) (4,385,119)
	12,967,509	353,637	5,317,206 18,638,352

No segment liabilities are disclosed because there is no measure of segment liabilities regularly reported to the chief operating decision maker.

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Bass Metals Limited and Controlled Entities Appendix 4E- Preliminary Final Report For the year ended 30 June 2019

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Reconciliation to Financial Statements

The total presented for the Group’s operating segments reconcile to the key financial figures as presented in its financial statements as follows:

Loss Total reportable segment operating loss Discontinued operations, refer note 6 Loss for the period Assets Total reportable segment assets Group assets	2019 2018 $ $ (6,912,686) (4,385,119) (638,123) (63,059)
	(7,550,809) (4,448,178)
	17,729,277 18,638,352
	17,729,277 18,638,352

The Group’s revenues from external customers and its non-current assets are divided into the following geographical areas:

Madagascar Mauritius Australia India Europe USA Total	Revenue	Non-current assets Revenue Non-current assets 2019 2018 2018 $ $ $
	2019
	$
	-	11,011,714 1,439 9,348,045 1,878,518 - 2,260,703 750,101 - 739,080 - - - - - - - 37,3311 -
	-
	-
	374,251
	296,150
	657,925
	1,328,326	13,640,333 38,770 12,347,828

Note 1: Represents revenue from one customer.

Revenues from external customers have been identified based on the customer’s geographical location. Non-current assets are allocated based on their physical location.

3. Other revenue

3.	Other revenue
		2019	2018
		$	$
	Interest received	45,537	17,944
	Rent and access fees received	10,000	10,500
		55,537	28,944
4.	Other income
		2019	2018
		$	$
	Gain - Settlement gain1	-	100,000
	Gain – VAT2	-	125,000
	Sale of Scrap metal	3,968	-
	Research and development grant	147,954	-
	Total other income	151,922	225,000
	Note1: Relates to gain on settlement of the Graphmada acquisition.
	Note2: Relates to VAT received that was previously written off as uncollectable at the date of acquisition		of Graphmada.

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Bass Metals Limited and Controlled Entities Appendix 4E- Preliminary Final Report For the year ended 30 June 2019

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5. Loss for the period

The loss for the period is stated after taking into account the following: 8 (a) Cost of sales Direct mine operating expense Depreciation expense Inventory write down to net realisable value Total cost of sales 8 (b) Administration expenses Mine administration expense: Depreciation Amortisation Employee benefits expense Mine consultancy Write off of plant & equipment Repairs and maintenance Other administration expenses Total mine administration expenses Corporate administration: Employee benefits expense Contracting & consulting expenses Share based payment expense Rental expenses Legal expenses Depreciation Director fees Travel expenses Share registry, ASX Other administration expenses Total corporate administration expenses Total administration expenses 8 (c) Foreign currency (gain)/loss Foreign currency (gain)/loss – realised Foreign currency (gain)/loss – unrealised Total foreign currency (gain)/loss	2019 $ 2018 $ 2,689,661 688,153 405,200 136,906 245,149 -
	3,340,010 825,059
	69,380 146,869 294,361 - 877,549 575,109 235,345 67,218 - 21,138 229,399 173,015 1,268,857 907,359
	2,974,891 1,890,708
	1,253,499 792,939 119,301 157,655 - - 86,274 48,541 21,450 61,754 1,239 7,392 270,054 149,705 312,094 361,067 187,648 196,653 336,002 430,049
	2,587,561 2,205,755
	5,562,452 3,949,594
	9,961 (1,974) (479,538) (354,277)
	(469,577) (356,251)

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Bass Metals Limited and Controlled Entities Appendix 4E- Preliminary Final Report For the year ended 30 June 2019

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6. Loss attributable to discontinued operations

The Company continues to seek a buyer for its Tasmanian capitalised exploration assets. This disposal group was fully impaired during 2017 and is, therefore, carried at nil value having been recognised as Capitalised Exploration and Evaluation Assets Held for Sale in the Statement of Financial Position.

During the current and prior year, care and maintenance expenses relating to this disposal group have been eliminated from profit or loss from the Group’s continuing operations and are shown as a single line item on the face of the statement of profit or loss and other comprehensive income (see loss after tax from discontinued operations ).

Expenses Hellyer operating infrastructure – care & maintenance Total expenses Earnings Per Share (Basic and diluted Earnings Per Share) (Loss) for the period Weighted average number of ordinary shares used in the calculation of basic earnings per share Basic and diluted (loss) per share (cents)	2019 $ 2018 $ 638,123 63,059
	638,123 63,059
	2019 $ 2018 $ (7,550,809) (4,448,178) 2,638,056,957 1,990,361,646
	(0.29) (0.22)

7. Earnings Per Share

There is no dilutive potential for ordinary shares as the exercise of options to ordinary shares would have the effect of decreasing the loss per ordinary share and would therefore be non-dilutive.

8. Borrowings

Convertible notes Non-Current Balance at the beginning of the period Convertible notes	2019 $ 2018 $ - - 1,122,160 -
	1,122,160 -

On 28 June 2019, the Group announced a capital raising of up to $4 million (before issue costs) via a tranched issue of Convertible Notes to sophisticated and professional investors at an issue price of $0.008 each, with an interest rate of 15% per annum and a maturity date of 15 June 2021. Interest is payable half yearly in arrears and the interest may be paid in at the Company’s election by the issue of further Convertible Notes. Each Convertible Note coverts into one ordinary share in the Company and is secured over the assets of the Company.

At reporting date, the Company has received subscriptions from cornerstone investors for $1.4 million of the Convertible Notes which have been issued as an initial tranche 1 (being 176,250,000 Convertible Notes at $0.008). The convertible notes have a fair value of $1,122,160.

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