AI assistant
LCL RESOURCES LIMITED — Interim / Quarterly Report 2018
Sep 12, 2018
65217_rns_2018-09-12_c5b7bb4f-b4e9-4a25-bc48-7364ba5fc4af.pdf
Interim / Quarterly Report
Open in viewerOpens in your device viewer
Metminco Limited ABN 43 119 759 349
==> picture [168 x 26] intentionally omitted <==
INTERIM FINANCIAL REPORT FOR THE HALF YEAR ENDED
30 JUNE 2018
Report for the half year ended 30 June 2018
Metminco Limited ABN 43 119 759 349
==> picture [168 x 26] intentionally omitted <==
| TABLE OF CONTENTS: | |
|---|---|
| Directors’ Report | 2 |
| Auditor’s Independence Declaration | 7 |
| Consolidated Financial Statements | 8 |
| Notes to Consolidated Financial Statements | 13 |
| Directors’ Declaration | 23 |
| Independent Auditor’s Report | 24 |
Report for the half year ended 30 June 2018
Metminco Limited ABN 43 119 759 349
==> picture [168 x 26] intentionally omitted <==
DIRECTORS’ REPORT
The Directors present their report, together with the financial statements of the consolidated entity (the ‘Group’) being Metminco Limited (‘Metminco’ or the ‘Company’) and the entities it controlled at the end of, or during, the half year ended 30 June 2018 as well as the Independent Review Report.
Directors
The following persons held the office of director during and since the half year ended on 30 June 2018.
Kevin Wilson Executive Chairman (appointed 23 March 2018) Roger Higgins Non-Executive Director Glenister Lamont Non-Executive Director (appointed 28 May 2018) William Howe Managing Director (resigned 23 March 2018) Francisco Vergara-Irarrazaval Non-Executive Director (resigned 28 May 2018) Ram Venkat Non-Executive Director (resigned 19 March 2018)
Directors have been in office since the start of the half year unless otherwise stated.
Company Secretary
Graeme Hogan was the Company Secretary and CFO until 28 May 2018. On 26 April 2018 Geoffrey Widmer was appointed Joint Company Secretary alongside Graeme Hogan.
Graeme Hogan resigned as Company Secretary and Chief Financial Officer effective 28 May 2018. On that day Andrew Metcalfe was appointed Joint Company Secretary and CFO. Andrew Metcalfe and Geoffrey Widmer are in office at the date of this report.
Principal Activities
The Group’s Quinchia Gold Portfolio encompasses a potential near-term producing asset, the Miraflores Gold Project, as well as assets with substantial upside potential including the significant gold porphyry system targets of Tesorito, Dosquebrados and Chuscal. A Plan of works was submitted to the Colombian Mining Agency in January 2018 for the construction of the proposed Miraflores gold mine.
While the Company also retains its 100% Chilean Projects, the primary focus is on the Miraflores Gold Project and as such the Chilean projects are on care and maintenance. These Chilean projects provide significant exposure to copper through Mollacas on which a mining study announced in 2014 demonstrated robust economics for development of the Mollacas Project, which is subject to resolution of a dispute with the land holder. The Vallecillo Project is a polymetallic deposit with identified resources.
Financial and Operational Review
a) Financial Review
The Consolidated Group reported a loss for the half year ended 30 June 2018 of A$5,598,767 (2017: loss of A$30,727,034) after providing for income tax. No dividend was declared for the period.
During the half year ended 30 June 2018 Metminco’s cash position increased from A$834,377 to A$1,705,998.
Cash outgoings for the period were focused on the continued development of the Quinchia Gold Portfolio and corporate overheads.
2
Report for the half year ended 30 June 2018
Metminco Limited ABN 43 119 759 349
==> picture [168 x 26] intentionally omitted <==
DIRECTORS’ REPORT (Continued)
Financial and Operational Review (continued)
Details of fundraisings during the half year ended 30 June 2018 follow:
Entitlement offer
On 23 March 2018 the Company announced its intention to raise equity in a fully underwritten renounceable entitlement offer through the issue of 694,831,634 ordinary shares at an issue price of AUD$0.008 raising $5,558,653 with one free option of every three shares subscribed for. The options have an exercise price of AUD$0.011 and an expiry date 1 June 2020. This entitlement offer was successfully completed on 26 April 2018.
Placements
On 28 March 2018 the Company placed 19,080,045 ordinary fully paid shares at AUD$0.008 and the subscribers received 6,360,015 free options. The gross proceeds were AUD$152,640. This placement was ratified at the AGM on 28 May 2018.These funds were used to repay debts and relaunch exploration on the Company’s high potential Tesorito gold prospect in Colombia.
Derivative asset
On 31 January 2017 the Company entered into a Subscription Agreement, Escrow Agreement and Sharing Agreement with Lanstead Capital L.P regarding an A$3 million derivative asset facility. Pursuant to these agreements the Company issued 25,316,456 shares at 0.1158 per share for an aggregate subscription amount of A$3million. As security for the proceeds of these shares the recipient of the shares placed $A3million in government bonds with an escrow agent as security for the proceeds receivables. A$0.45 million was received as an advance and the remaining $A2.55 million was to be received over 18 months.
On 28 March 2018 the Company received a confirmation from Lanstead Capital confirming that the Subscription Agreement, Escrow Agreement and Sharing Agreement with Lanstead Capital L.P will be terminated and the Company received cash amounting to $44,410.
Convertible notes redemption
In May 2017 the Company entered into an A$0.75 million unsecured convertible note facility with Redfield Asset Management. The convertible notes have been redeemed by repaying the face value of the notes of A$750,000 plus interest of A$92,383 totalling a payment of A$842,383 on 24 April 2018.
At the end of the period, the Group’s net asset position was A$9,940,819 (31 December 2017: A$8,591,789) and cash reserves were A$1,705,998 (31 December 2017: A$834,377). Of this cash amount 1,528,609 was held in Australian dollars, 138,433 in Colombian Pesos, 23,084 in US dollars, 11,770 in GBP and 4,102 in Chilean Pesos.
| Net Loss after Income Tax Basic Loss per share (cents) Diluted Loss per share (cents) Dividend per share (cents) Share price at 30 June |
Six months ended 30 June 2018 30 June 2017 $’000 $’000 |
|---|---|
| (5,598) (30,727) (1.44) (25.38) (1.44) (25.38) 0.00 0.00 0.005 0.011 |
3
Report for the half year ended 30 June 2018
Metminco Limited ABN 43 119 759 349
==> picture [168 x 26] intentionally omitted <==
DIRECTORS’ REPORT (Continued)
Financial and Operational Review (continued)
b) Operating Review
Quinchia Gold Portfolio Colombia
In June 2016 the Company completed the acquisition of Miraflores Compania Minera (“Miraflores Compania”) from RMB Resources Australia Pty Ltd. Miraflores Compania owns 100% of the Quinchia Gold Portfolio located within Colombia’s Middle Cauca Belt approximately 90km WNW of the Colombian capital of Bogota and 55 km to the north of Pereira, the capital of the Department of Risaralda.
The Quinchia Portfolio contains several gold deposits and exploration prospects including Miraflores, Dosquebradas, Tesorito and Chuscal.
A review of the Columbian concessions during the half year, resulted in the decision to relinquish a number of concessions and, in line with the Company’s accounting policies, to impair some of the capitalised exploration on certain concessions.
During the half year period a 1,500m diamond drilling program was commenced at Tesorito, part of the Quinchia Gold Portfolio. Results from the program were announced in August 2018 and included best intercept of 64m @ 1.67g/t Au from 144m within 253m @ 1.10 g/t from 2.9m from hole TS-DH-07 (refer ASX announcement of 30 August 2018).
Negotiations commenced with the owner of the Chuscal licence applications to form a joint venture. These discussions are ongoing as at the date of this report.
The Company submitted the Plan of Work (“PTO”) to the Colombian Mining Agency for mine development approval for the Miraflores Gold Project in January 2018. Colombian regulations require both the PTO and Environmental Impact Assessment approvals prior to commencement of operations. As at the date of this report, approval of the PTO is awaited.
The critical path for the development of the project remains the completion of the EIA, including the validation of the impacts on the local communities and the gaining of the social licence for the project. Final, seasonal water monitoring was completed during the quarter and will inform the EIA submission.
Mollacas, Vallecillo, Loica Projects, Chile
These projects remained on care and maintenance during the reporting period.
Corporate
During the half year the new management of Company undertook a number of measures to reduce on-going costs, which necessitated some additional short-term expenses. The Company’s registered office was moved from Sydney to Melbourne.
4
Report for the half year ended 30 June 2018
Metminco Limited ABN 43 119 759 349
==> picture [168 x 26] intentionally omitted <==
DIRECTORS’ REPORT (Continued)
Competent Persons Statement
The information in this report that relates to Exploration Results is based on information compiled by Gavin Daneel, BSc, MSc, who is a Member of the Australasian Institute of Mining and Metallurgy and is engaged as a Consultant in Australia.
Gavin Daneel is a consultant to the Company and has sufficient experience which is relevant to the style of mineralisation, type of deposit under consideration, and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results’. Mr Daneel, as Competent Person for this report, has consented to the inclusion of the information in the form and context in which it appears herein.
Forward Looking Statement
All statements other than statements of historical fact included in this announcement including, without limitation, statements regarding future plans and objectives of Metminco are forward-looking statements. When used in this announcement, forward-looking statements can be identified by words such as ‘’anticipate”, “believe”, “could”, “estimate”, “expect”, “future”, “intend”, “may”, “opportunity”, “plan”, “potential”, “project”, “seek”, “will” and other similar words that involve risks and uncertainties.
These statements are based on an assessment of present economic and operating conditions, and on a number of assumptions regarding future events and actions that, as at the date of this announcement, are expected to take place. Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties, assumptions and other important factors, many of which are beyond the control of the Company, its directors and management of Metminco that could cause Metminco’s actual results to differ materially from the results expressed or anticipated in these statements.
The Company cannot and does not give any assurance that the results, performance or achievements expressed or implied by the forward-looking statements contained in this announcement will actually occur and investors are cautioned not to place undue reliance on these forward-looking statements. Metminco does not undertake to update or revise forward-looking statements, or to publish prospective financial information in the future, regardless of whether new information, future events or any other factors affect the information contained in this announcement, except where required by applicable law and stock exchange listing requirements.
5
Report for the half year ended 30 June 2018
Metminco Limited ABN 43 119 759 349
==> picture [168 x 26] intentionally omitted <==
DIRECTORS’ REPORT (Continued)
Matters subsequent to the end of the financial period
Matters that have arisen in the interval between the end of the half year ended 30 June 2018 and the date of this report of a material or unusual nature are as follows:
Appointment of Nick Winer (2 August 2018) as Director of Exploration, based in Medellin, Colombia. Nick is a geologist with over 30 years’ experience in gold, base metals in South America and will lead the Company’s activities in Colombia, in particular, the advancement of the portfolio of gold assets in the Quinchia district.
On 13[th] September 2018, the Company entered into an unsecured loan facility arrangement with private investors to the value of $500,000 at a 12% coupon rate paid quarterly maturing 6 months from date of issue or earlier by the Company on 30 days’ notice or on completion of a proposed capital raising.
On 13[th] September 2018, the Company entered into a Trading Halt on the ASX pending a corporate transaction and capital raising.
As at the date of this report, the Directors are not aware of any further matters that have arisen that have significantly affected, or may significantly affect, the operations of the Company
Rounding of amounts
The Company is of the kind referred to in ASIC Corporations (Rounding in Financial/Directors Reports) Legislative Instrument 2016/191, dated 1 April 2016, and in accordance with that Legislative Instrument amounts in the Directors Report and the Financial Statements are rounded off to the nearest thousand dollars, unless otherwise indicated.
Auditor’s Independence Declaration
A copy of the auditor’s independence declaration as required under S307C of the Corporations Act 2001, is included in this financial report, and forms part of this Directors’ Report.
This report is signed in accordance with a resolution of the Board of Directors.
==> picture [147 x 30] intentionally omitted <==
Kevin Wilson, Director Dated: 13 September 2018
6
Report for the half year ended 30 June 2018
==> picture [158 x 31] intentionally omitted <==
Collins Square, Tower 1 727 Collins Street Melbourne VIC 3000
Correspondence to: GPO Box 4736 Melbourne VIC 3001
T +61 3 8320 2222 F +61 3 8320 2200 E [email protected] W www.grantthornton.com.au
Auditor’s Independence Declaration
To the Directors of Metminco Limited
In accordance with the requirements of section 307C of the Corporations Act 2001 , as lead auditor for the review of Metminco Limited for the half-year ended 30 June 2018. I declare that, to the best of my knowledge and belief, there have been:
a no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the review; and
b no contraventions of any applicable code of professional conduct in relation to the review.
==> picture [132 x 50] intentionally omitted <==
Grant Thornton Audit Pty Ltd Chartered Accountants
==> picture [94 x 50] intentionally omitted <==
B A Mackenzie Partner - Audit & Assurance
Melbourne, 13 September 2018
Grant Thornton Audit Pty Ltd ACN 130 913 594 a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389
www.grantthornton.com.au
‘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.
==> picture [168 x 26] intentionally omitted <==
Metminco Limited ABN 43 119 759 349
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
For the half year ended 30 June 2018
| Note Other income Administration expenses Corporate expenses Occupancy expense Exploration expenditure written off 9 Share based payments expense 12 Loss on sale of asset Unrealised loss on derivative asset Realised loss on derivative asset 5 Profit on disposal of assets Finance costs Loss before income tax Income tax expense Loss for the period from continuing operations Other comprehensive income: Items that may be reclassified subsequently to profit or loss: Exchange differences on translating foreign controlled entities Total comprehensive Loss for the period Loss attributable to: Members of the parent entity Total comprehensive (loss) attributable to: Members of the parent entity Loss per share From continuing operations: Basic loss per share (cents) Diluted loss per share (cents) |
30 June 2018 $ 30 June 2017 $ |
|---|---|
| 2,496 - (122,692) (288,047) (1,685,036) (1,267,766) (67,677) (51,860) (2,485,725) (87,880) (781,607) - - (27,165,722) - (1,553,481) (228,273) (106,118) - 23,570 (230,253) (229,730) |
|
| (5,598,767) (30,727,034) – – |
|
| (5,598,767) (30,727,034) 435,451 (1,430,655) |
|
| (5,163,316) (32,157,689) |
|
| (5,598,767) (30,727,034) |
|
| (5,598,767) (30,727,034) |
|
| (5,163,316) (32,157,689) |
|
| (5,163,316) (32,157,689) |
|
| (1.44) (25.38) (1.44) (25.38) |
These financial statements should be read in conjunction with the accompanying notes.
8
Report for the half year ended 30 June 2018
==> picture [168 x 26] intentionally omitted <==
Metminco Limited ABN 43 119 759 349
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 30 June 2018
| Note ASSETS CURRENT ASSETS Cash and cash equivalents Trade and other receivables 4 Derivative asset 5 Asset held for sale 6 Other assets 7 TOTAL CURRENT ASSETS NON-CURRENT ASSETS Property, plant and equipment 8 Exploration and evaluation expenditure 9 TOTAL NON-CURRENT ASSETS TOTAL ASSETS CURRENT LIABILITIES Trade and other payables 10 Provisions 11 TOTAL CURRENT LIABILITIES NON-CURRENT LIABILITIES Trade and other Payables 10 TOTAL NON-CURRENT LIABILITIES TOTAL LIABILITIES NET ASSETS EQUITY Issued capital 13 Other reserves Accumulated losses TOTAL EQUITY |
30 June 2018 $ 31 December 2017 $ |
|---|---|
| 1,705,998 834,377 99,502 167,382 - 272,683 2,726,512 2,586,122 151,880 48,610 |
|
| 4,683,892 3,909,174 |
|
| 740,571 569,642 10,352,562 12,015,128 |
|
| 11,093,132 12,584,770 |
|
| 15,777,024 16,493,944 |
|
| 3,907,227 3,392,074 214,300 187,214 |
|
| 4,121,527 3,579,288 |
|
| 1,714,678 4,322,867 |
|
| 1,714,678 4,322,867 |
|
| 5,836,205 7,902,155 |
|
| 9,940,819 8,591,789 |
|
| 338,729,969 332,987,792 (28,685,744) (29,914,047) (300,103,406) (294,481,956) |
|
| 9,940,819 8,591,789 |
These financial statements should be read in conjunction with the accompanying notes.
9
Report for the half year ended 30 June 2018
Metminco Limited ABN 43 119 759 349
==> picture [168 x 26] intentionally omitted <==
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY For the half year ended 30 June 2018
| Balance at 1 January 2017 Loss attributable to members of the parent entity Other comprehensive loss Total comprehensive loss for the period Shares issued during the period Transaction costs Equity component of convertible note Options issued during the period Balance at 30 June 2017 Balance at 1 January 2018 Loss attributable to members of the parent entity Other comprehensive loss Total comprehensive loss for the period Shares issued during the period Transaction costs Equity component of convertible note Options issued during the period Options expired –prior period adjustment Balance at 30 June 2018 |
Issued Capital Accumulated Losses $ $ |
Option Reserve $ |
Convertible Note equity reserve $ |
Foreign Currency Translation Reserve $ |
Acquisition Reserve Total $ $ |
|---|---|---|---|---|---|
| 329,032,074 (259,254,583) (30,727,034) _ |
54,686 |
_ |
11,309,289 _ (1,430,655) |
(41,506,662) 39,634,804 (30,727,034) (1,430,655) |
|
(30,727,034) 4,375,000 (314,703) _ |
426,172 |
11,468 |
(1,430,655) |
(32,157,689) 4,375,000 (314,703) 11,468 _ 426,172 |
|
| 333,092,371 (289,981,617) |
480,858 | 11,468 | 9,878,634 | (41,506,662) 11,975,052 |
|
| 332,987,792 (294,481,956) (5,598,767) _ |
480,860 |
11,448 |
11,100,307 _ 435,451 |
(41,506,662) 8,591,789 (5,598,767) 435,451 |
|
(5,598,767) 6,282,789 (540,612) - - - - 54,687 |
781,617 (54,687) |
(11,468) - |
435,451 - |
(5,163,316) 6,282,789 (540,612) (11,468) _ 781,617 - - |
|
| 338,729,968 (300,026,036) |
1,207,790 | - | 11,535,758 | (41,506,662) 9,940,818 |
These financial statements should be read in conjunction with the accompanying notes.
10
Report for the half year ended 30 June 2018
Metminco Limited ABN 43 119 759 349
==> picture [168 x 26] intentionally omitted <==
CONSOLIDATED STATEMENT OF CASH FLOWS
For the half year ended 30 June 2018
| Note CASH FLOWS FROM OPERATING ACTIVITIES Payments to suppliers and employees Interest received Net cash used in operating activities CASH FLOWS FROM INVESTING ACTIVITIES Purchase of property, plant and equipment Payments for exploration expenditure Payment of deferred consideration Proceeds from sale of Los Calatos Net cash (used in)/provided by investing activities CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from issue of shares Payments in respect to capital raisings Cash received from convertible notes Cash paid for convertible notes redemption Cash received from derivative asset Cash received from equity swap Net cash provided by financing activities Net increase in cash held Cash and cash equivalents at beginning of financial period Effect of exchange rates on cash holdings in foreign currencies Cash and cash equivalents at end of financial period |
30 June 2018 $ 30 June 2017 $ |
|---|---|
| (1,677,704) (1,573,133) 2,496 – |
|
| (1,675,208) (1,573,133) |
|
| (170,394) 23,570 (712,408) (1,203,307) (1,000,000) – - 6,601,155 |
|
| (1,882,802) 5,421,418 |
|
| 6,282,789 2,020,035 (540,612) (314,704) - 750,000 (842,383) - - 35,549 44,410 - |
|
| 4,944,204 2,490,880 |
|
| 1,386,194 6,339,165 834,377 71,548 (514,573) (60,782) |
|
| 1,705,998 **6,349,931 ** |
These financial statements should be read in conjunction with the accompanying notes.
11
Report for the half year ended 30 June 2018
Metminco Limited ABN 43 119 759 349
==> picture [168 x 26] intentionally omitted <==
NOTES TO THE FINANCIAL STATEMENTS
For the half year ended 30 June 2018
NOTE 1: BASIS OF PREPARATION AND ACCOUNTING POLICIES
Basis of preparation
Reporting entity
Metminco Limited is a company domiciled in Australia. The consolidated interim financial report of the Company for the half-year ended 30 June 2018 comprises the Company and its controlled entities, and is presented in Australian dollars, which is the functional currency of the parent company.
The consolidated annual financial report of the consolidated entity for the period ended 31 December 2017 is available upon request from the Company’s registered office at Suite 3, Level 2, 470 Collins Street, Melbourne, 3000, Australia or from the Company’s website at www.metminco.com.au.
The interim financial report has been prepared on an accruals basis and is prepared under historical cost convention, modified, where applicable, by the measurement at fair value of selected non-current assets, financial assets and financial liabilities.
The financial statements were authorised for issue by the directors on 13 September 2018.
Statement of Compliance
This general-purpose financial report for the half year ended 30 June 2018 has been prepared in accordance with the requirements of the Corporations Act 2001 and AASB 134 Interim Financial Reporting.
This interim financial report does not include all the notes of the type normally included in an annual financial report. Accordingly, this report is to be read in conjunction with the annual report for the year ended 31 December 2017 and any public announcements made by Metminco Limited during the interim reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001.
Significant Accounting Policies
The accounting policies applied by the consolidated entity in this condensed consolidated interim financial report are consistent with those applied by the consolidated entity in its annual financial report for the year ended 31 December 2017 other than as stated below.
Going concern basis of accounting
The Consolidated Group incurred a net loss after tax of $5,598,767 (30 June 2017: $30,727,034), has net cash used in operations (including payments for exploration) of $2,559,922 during the half-year ended 30 June 2018 (30 June 2017: $1,673,133) and has a cash balance of $1,705,998 as at that date (30 June 2017: $6,349,931).
It also has net current assets of $562,365 (31 December 2017: $329,866) and net assets of $9,940,819 (31 December 2017: $8,591,789).
Although the Group has taken steps to ensure its outgoing expenditure is at the minimum levels required to maintain its projects in good standing and meet its governance, compliance and ASX listing obligations, additional funding will be required within the next 12 months to meet these obligations. The Company reviewed various capital raising options to underpin the continued solvency of the business. It has entered into an unsecured loan facility arrangement on 13[th] September 2018 with private investors to the value of $500,000 at a 12% coupon rate paid quarterly maturing 6 months from date of issue or earlier by the Company on 30 days’ notice or on completion of a proposed capital raising.
The Company is planning to initiate a placement using its 15% capacity under Listing Rule 7.1 to sophisticated and professional investors. This placement is to be completed after receiving shareholder approval at the Extraordinary General Meeting of Shareholders to be held on 14[th] September 2018.
Following completion of the placement, the Company will seek further funding to support its working capital and business development.
If these capital raising initiatives do not materialise, then there is possibility that the Group may not be able to raise the additional financing required, which gives rise to a material uncertainty that may cast significant doubt upon the Group’s ability to continue as a going concern.
Notwithstanding the material uncertainty the Directors are satisfied that the Company and Group have sufficient cash reserves together with its strategies as alluded to above to maintain its current portfolio and meet its debts as and when they fall due. Therefore, these financial statements have been prepared on a going concern basis.
12
Report for the half year ended 30 June 2018
Metminco Limited ABN 43 119 759 349
==> picture [168 x 26] intentionally omitted <==
NOTES TO THE FINANCIAL STATEMENTS (continued) For the half year ended 30 June 2018
NOTE 2: SEGMENT REPORTING
The company’s primary activity is mineral exploration in the geographical area of South America. This focus is consistent with the internal reports that are reviewed and used by the Board of Directors (chief operating decision makers) in assessing performance and determining the allocation of resources.
| MINERAL EXPLORATION NON-CORE RECONCILING ITEMS Total a. Segment performance 30 June 2018 $ 30 June 2017 $ 30 June 2018 $ 30 June 2017 $ 30 June 2018 $ 30 June 2017 $ Revenue – – - – - – Other income – – 2,496 – 2,496 – Total group Income – – 2,496 – 2,496 – Segment gain/(loss) before tax (2,762,387) (108,399) (2,836,380) (30,618,635) (5,598,767) (30,727,034) Gain/(loss) before tax from continuing operations (2,762,387) (108,399) (2,836,380) (30,618,635) (5,598,767) (30,727,034) Depreciation and amortisation expense included in segement result: (31,024) (32,025) (1,049) (837) (32,073) (32,862) Impairment expense (2,485,725) (87,880) – – (2,485,725) (87,880) MINERAL EXPLORATION NON-CORE RECONCILING ITEMS Total b. Segment assets 30 June 2018 $ 31 December 2017 $ 30 June 2018 $ 31 December 2017 $ 30 June 2018 $ 31 December 2017 $ Segment assets 13,353,333 15,286,863 1,609,521 1,207,081 14,962,854 16,493,944 Segment asset increases for the period – capital expenditure 712,990 3,113,298 – – 712,990 3,113,298 – deferred consideration 1,000,000 – – – 1,000,000 – – investment in associates – – – – – – 1,712,990 3,113,298 – – 1,712,990 3,113,298 c. Segment liabilities Segment liabilities 291,233 379,673 5,544,972 7,522,482 5,836,205 7,902,155 Reconciliation of segment liabilities to group liabilities -Total group liabilities 291,233 379,673 5,544,972 7,522,482 5,836,205 7,902,155 d. Total Income by geographical region Income is disclosed below, based on the location : 30 JUNE 2018 $ 30 JUNE 2017 $ Australia 2,496 – South America – – Total Income 2,496 – e. Assets by geographical region The location of non-current assets by geographical location is disclosed below: 30 JUNE 2018 $ 31 DECEMBER 2017 $ Australia 2,596 3,063 Colombia 11,090,536 12,555,560 Chile - 26,147 Total non-current assets 11,093,132 12,584,770 |
MINERAL EXPLORATION NON-CORE RECONCILING ITEMS Total a. Segment performance 30 June 2018 $ 30 June 2017 $ 30 June 2018 $ 30 June 2017 $ 30 June 2018 $ 30 June 2017 $ Revenue – – - – - – Other income – – 2,496 – 2,496 – Total group Income – – 2,496 – 2,496 – Segment gain/(loss) before tax (2,762,387) (108,399) (2,836,380) (30,618,635) (5,598,767) (30,727,034) Gain/(loss) before tax from continuing operations (2,762,387) (108,399) (2,836,380) (30,618,635) (5,598,767) (30,727,034) Depreciation and amortisation expense included in segement result: (31,024) (32,025) (1,049) (837) (32,073) (32,862) Impairment expense (2,485,725) (87,880) – – (2,485,725) (87,880) MINERAL EXPLORATION NON-CORE RECONCILING ITEMS Total b. Segment assets 30 June 2018 $ 31 December 2017 $ 30 June 2018 $ 31 December 2017 $ 30 June 2018 $ 31 December 2017 $ Segment assets 13,353,333 15,286,863 1,609,521 1,207,081 14,962,854 16,493,944 Segment asset increases for the period – capital expenditure 712,990 3,113,298 – – 712,990 3,113,298 – deferred consideration 1,000,000 – – – 1,000,000 – – investment in associates – – – – – – 1,712,990 3,113,298 – – 1,712,990 3,113,298 c. Segment liabilities Segment liabilities 291,233 379,673 5,544,972 7,522,482 5,836,205 7,902,155 Reconciliation of segment liabilities to group liabilities -Total group liabilities 291,233 379,673 5,544,972 7,522,482 5,836,205 7,902,155 d. Total Income by geographical region Income is disclosed below, based on the location : 30 JUNE 2018 $ 30 JUNE 2017 $ Australia 2,496 – South America – – Total Income 2,496 – e. Assets by geographical region The location of non-current assets by geographical location is disclosed below: 30 JUNE 2018 $ 31 DECEMBER 2017 $ Australia 2,596 3,063 Colombia 11,090,536 12,555,560 Chile - 26,147 Total non-current assets 11,093,132 12,584,770 |
MINERAL EXPLORATION NON-CORE RECONCILING ITEMS Total a. Segment performance 30 June 2018 $ 30 June 2017 $ 30 June 2018 $ 30 June 2017 $ 30 June 2018 $ 30 June 2017 $ Revenue – – - – - – Other income – – 2,496 – 2,496 – Total group Income – – 2,496 – 2,496 – Segment gain/(loss) before tax (2,762,387) (108,399) (2,836,380) (30,618,635) (5,598,767) (30,727,034) Gain/(loss) before tax from continuing operations (2,762,387) (108,399) (2,836,380) (30,618,635) (5,598,767) (30,727,034) Depreciation and amortisation expense included in segement result: (31,024) (32,025) (1,049) (837) (32,073) (32,862) Impairment expense (2,485,725) (87,880) – – (2,485,725) (87,880) MINERAL EXPLORATION NON-CORE RECONCILING ITEMS Total b. Segment assets 30 June 2018 $ 31 December 2017 $ 30 June 2018 $ 31 December 2017 $ 30 June 2018 $ 31 December 2017 $ Segment assets 13,353,333 15,286,863 1,609,521 1,207,081 14,962,854 16,493,944 Segment asset increases for the period – capital expenditure 712,990 3,113,298 – – 712,990 3,113,298 – deferred consideration 1,000,000 – – – 1,000,000 – – investment in associates – – – – – – 1,712,990 3,113,298 – – 1,712,990 3,113,298 c. Segment liabilities Segment liabilities 291,233 379,673 5,544,972 7,522,482 5,836,205 7,902,155 Reconciliation of segment liabilities to group liabilities -Total group liabilities 291,233 379,673 5,544,972 7,522,482 5,836,205 7,902,155 d. Total Income by geographical region Income is disclosed below, based on the location : 30 JUNE 2018 $ 30 JUNE 2017 $ Australia 2,496 – South America – – Total Income 2,496 – e. Assets by geographical region The location of non-current assets by geographical location is disclosed below: 30 JUNE 2018 $ 31 DECEMBER 2017 $ Australia 2,596 3,063 Colombia 11,090,536 12,555,560 Chile - 26,147 Total non-current assets 11,093,132 12,584,770 |
MINERAL EXPLORATION NON-CORE RECONCILING ITEMS Total a. Segment performance 30 June 2018 $ 30 June 2017 $ 30 June 2018 $ 30 June 2017 $ 30 June 2018 $ 30 June 2017 $ Revenue – – - – - – Other income – – 2,496 – 2,496 – Total group Income – – 2,496 – 2,496 – Segment gain/(loss) before tax (2,762,387) (108,399) (2,836,380) (30,618,635) (5,598,767) (30,727,034) Gain/(loss) before tax from continuing operations (2,762,387) (108,399) (2,836,380) (30,618,635) (5,598,767) (30,727,034) Depreciation and amortisation expense included in segement result: (31,024) (32,025) (1,049) (837) (32,073) (32,862) Impairment expense (2,485,725) (87,880) – – (2,485,725) (87,880) MINERAL EXPLORATION NON-CORE RECONCILING ITEMS Total b. Segment assets 30 June 2018 $ 31 December 2017 $ 30 June 2018 $ 31 December 2017 $ 30 June 2018 $ 31 December 2017 $ Segment assets 13,353,333 15,286,863 1,609,521 1,207,081 14,962,854 16,493,944 Segment asset increases for the period – capital expenditure 712,990 3,113,298 – – 712,990 3,113,298 – deferred consideration 1,000,000 – – – 1,000,000 – – investment in associates – – – – – – 1,712,990 3,113,298 – – 1,712,990 3,113,298 c. Segment liabilities Segment liabilities 291,233 379,673 5,544,972 7,522,482 5,836,205 7,902,155 Reconciliation of segment liabilities to group liabilities -Total group liabilities 291,233 379,673 5,544,972 7,522,482 5,836,205 7,902,155 d. Total Income by geographical region Income is disclosed below, based on the location : 30 JUNE 2018 $ 30 JUNE 2017 $ Australia 2,496 – South America – – Total Income 2,496 – e. Assets by geographical region The location of non-current assets by geographical location is disclosed below: 30 JUNE 2018 $ 31 DECEMBER 2017 $ Australia 2,596 3,063 Colombia 11,090,536 12,555,560 Chile - 26,147 Total non-current assets 11,093,132 12,584,770 |
|---|---|---|---|
| 13,353,333 15,286,863 1,609,521 |
1,207,081 14,962,854 16,493,944 |
||
| 712,990 3,113,298 – 1,000,000 – – – – – |
– 712,990 3,113,298 – 1,000,000 – – – – |
||
| 1,712,990 3,113,298 – 291,233 379,673 5,544,972 |
– 1,712,990 3,113,298 7,522,482 5,836,205 7,902,155 |
||
| 7,522,482 5,836,205 7,902,155 |
|||
| 30 JUNE 2018 $ 30 JUNE 2017 $ 2,496 – – – 2,496 – 30 JUNE 2018 $ 31 DECEMBER 2017 $ 2,596 3,063 11,090,536 12,555,560 - 26,147 11,093,132 12,584,770 |
13
Report for the half year ended 30 June 2018
Metminco Limited ABN 43 119 759 349
==> picture [168 x 26] intentionally omitted <==
NOTES TO THE FINANCIAL STATEMENTS (continued) For the half year ended 30 June 2018
NOTE 3: LOSS FOR THE PERIOD
| Expenses: Expenses from continuing operations Corporate expenses include: Employee and directors’ benefits expense Depreciation and amortisation |
6 months ended 30 June 2018 $ 6 months ended 30 June 2017 $ (703,250) (254,712) (32,073) (32,862) |
|---|---|
NOTE 4: TRADE AND OTHER RECEIVABLES
| CURRENT Other receivables1 Total current trade and other receivables NON-CURRENT VAT receivables2 Provision for impairment of VAT receivables Total non-current trade and other receivables |
30 June 2018 $ 31 December 2017 $ |
|---|---|
| 99,499 167,382 |
|
| 99,499 167,382 |
|
| 252,261 180,669 (252,261) (180,669) |
|
| – – |
1 Other receivable include GST receivable and Bonds.
2 VAT incurred by Miraflores Compania Minera SAS relating to the Quinchia Gold Project in Colombia.
NOTE 5: DERIVATIVE ASSET
| CURRENT Derivative asset1 |
30 June 2018 $ 31 December 2017 $ |
|---|---|
| - 272,683 |
1 On 31 January 2017 the Company entered into a Subscription Agreement, Escrow Agreement and Sharing Agreement with Lanstead Capital L.P regarding an A$3 million derivative asset facility. Pursuant to these agreements the Company issued 25,316,456 shares at 0.1158 per share for an aggregate subscription amount of A$3million. As security for the proceeds of these shares the recipient of the shares placed $A3million in government bonds with an escrow agent as security for the proceeds receivables.
Effective 28 March 2018 the arrangement was terminated, as such the difference between cash received and the derivative asset was realised to profit or loss.
Movement in the fair value of the derivative asset is as follows:
| Opening Balance 1 January 2018 |
Cash received from derivative asset |
Loss on Settlement (realized loss) |
Fair value adjustment |
Closing Balance 30 June 2018 |
|
|---|---|---|---|---|---|
| Current derivative asset | 272,683 | (44,410) | (228,273) | – | – |
14
Report for the half year ended 30 June 2018
Metminco Limited ABN 43 119 759 349
==> picture [168 x 26] intentionally omitted <==
NOTES TO THE FINANCIAL STATEMENTS (continued) For the half year ended 30 June 2018
NOTE 6: ASSET HELD FOR SALE
| NOTE 6: ASSET HELD FOR SALE | |
|---|---|
| CURRENT Asset held for sale1 |
30 June 2018 $ 31 December 2017 $ |
| 2,726,512 2,586,122 |
1 The Directors have decided that the land at Mollacas is surplus to requirements given the focus of the Company is on advancing its Colombian portfolio of assets & therefore has been offered for sale. An agent has been appointed to sell the land. The directors have recorded the land at the lower valuation as provided by an independent valuer. The movement during the interim period is because of foreign currency translation.
NOTE 7: OTHER ASSETS
| NOTE 7: OTHER ASSETS | |
|---|---|
| CURRENT Prepayments |
30 June 2018 $ 31 December 2017 $ |
| 151,880 48,612 |
15
Report for the half year ended 30 June 2018
Metminco Limited ABN 43 119 759 349
==> picture [168 x 26] intentionally omitted <==
NOTES TO THE FINANCIAL STATEMENTS (continued) For the half year ended 30 June 2018
NOTE 8: PROPERTY PLANT & EQUIPMENT
| NOTE 8: PROPERTY PLANT & EQUIPMENT | ||
|---|---|---|
| 30 June 2018 31 |
December 2017 | |
| $ | $ | |
| Land | ||
| At cost | 652,968 | 450,032 |
| Total land | 652,968 | 450,032 |
| Plant and equipment | ||
| At cost | 1,392,806 | 1,355,993 |
| Accumulated depreciation | (1,305,203) | (1,236,383) |
| Total plant and equipment | 87,603 | 119,610 |
| Total property, plant and equipment | 740,571 | 569,642 |
| Reconciliations | ||
| Reconciliation of the carrying amounts for each class of property, plant and equipment are set out below: | ||
| Land | ||
| Carrying amount at beginning of period | 450,032 | 4,409,481 |
| Additions of land | 169,812 | - |
| Impairment to fair value | - | (934,037) |
| Reclasification of land held for resale | - | (2,586,122) |
| Impact of foreign exchange movement | 33,124 | (439,290) |
| Carrying amount of plant and equipment at end of period | 652,968 | 450,032 |
| Plant and equipment | ||
| Carrying amount at beginning of period | 119,610 | 128,868 |
| Additions of equipment | 582 | – |
| Disposal of equipment | - | (23,181) |
| Impact of foreign exchange movement | (516) | 46,285 |
| Depreciation | (32,073) | (40,282) |
| Carrying amount of plant and equipment at end of period | 87,603 | 119,610 |
| Carrying amount at end of period | 740,571 | 569,642 |
16
Report for the half year ended 30 June 2018
Metminco Limited ABN 43 119 759 349
==> picture [168 x 26] intentionally omitted <==
NOTES TO THE FINANCIAL STATEMENTS (continued) For the half year ended 30 June 2018
NOTE 9: EXPLORATION AND EVALUATION
| NOTE 9: EXPLORATION AND EVALUATION | |
|---|---|
| Costs carried forward in respect of areas of interest in: – exploration and evaluation phases Reconciliations Carrying amount at the beginning of the period Expenditure incurred during the period Impact of foreign exchange movement during the period Exploration expenditure write off1 Carrying amount at the end of the half year |
30 June 2018 $ 31 December 2017 $ |
| 9,538,391 12,015,128 12,015,128 9,486,691 712,435 2,759,669 110,751 (182,795) (2,485,725) (48,437) 10,352,589 12,015,128 |
Exploration and evaluation capitalised at 30 June 2018 represents Miraflores and Tesorito, which are a part of the Quinchia project where management has an active drilling program.
Recoverability of the carrying amount of exploration assets is dependent upon the successful recovery of ore reserves. Impairment indicators in AASB 6 are considered for each area of interest.
1 Write off
During the six months ended 30 June 2018 the Company undertook a detailed review of its exploration targets in Colombia and due to competing expenditure priorities the Company agreed to write-off expenditrue associated with the Dosquebrados and Chuscal exploration targets.
Capitalised costs amounting to $712,408 for the 6-month period ended 30 June 2018 (for the year ended 31 December 2017: $1,203,307) have been included in cash flows from investing activities.
17
Report for the half year ended 30 June 2018
Metminco Limited ABN 43 119 759 349
==> picture [168 x 26] intentionally omitted <==
NOTES TO THE FINANCIAL STATEMENTS (continued) For the half year ended 30 June 2018
NOTE 10: TRADE AND OTHER PAYABLES
| CURRENT Trade payables Deferred consideration1 Convertible note payable incl accrued interest2 Other payables and accrued expenses NON CURRENT Deferred Consideration1 |
30 June 2018 $ 31 December 2017 $ |
|---|---|
| 455,098 780,870 2,777,778 962,250 - 808,020 674,351 840,934 |
|
| 3,907,227 3,392,074 |
|
| 1,714,678 4,322,867 |
1 As part of the Miraflores Compania acquisition, part of the consideration included a maximum of A$7million in deferred consideration/royalty payments to RMB from operating cashflows. Payment of $1m occurred in 2017 and a further $1m payment occurred in June 2018.
| nsideration/royalty payments to yment occurred in June 2018. |
RMB from operating cashflows. Payment of $1m occurred in 2017 and a further $1m |
|---|---|
| Deferred cash consideration (present value) |
Opening Balance 1 January 2018 $ Payment during the year $ Fair value adjustment $ Closing Balance 30 June 2018 $ |
| 5,285,117 (1,000,000) 207,338 4,492,455 |
1 The deferred cash consideration has been discounted at 8% per annum (2017: 8% per annum)
2 In May 2017 the Company entered an A$0.75 million unsecured convertible note facility with Redfield Asset Management. The convertible notes have been redeemed by repaying the face value of the notes of A$750,000 plus interest of A$92,383 totalling a payment of AUD842,383 on 24 April 2018.
.
NOTE 11: PROVISIONS
CURRENT
Employee benefits
| 30 | June | 2018 | 31 | December 2017 |
|---|---|---|---|---|
| $ | $ | |||
| 214,300 | 187,214 |
18
Report for the half year ended 30 June 2018
Metminco Limited ABN 43 119 759 349
==> picture [168 x 26] intentionally omitted <==
NOTES TO THE FINANCIAL STATEMENTS (continued) For the half year ended 30 June 2018
NOTE 12: ISSUED CAPITAL
| NOTE 12: ISSUED CAPITAL | ||
|---|---|---|
| 887,232,521 (31 December 2017: 101,883,843)fullypaid ordinary shares 25,316,456 (31 December 2017: 25,316,456)partlypaid ordinary shares a. Movements in fully paid ordinary share capital (No. Shares) Balance at beginning of the reporting period Shares issued - 31-Jan-171 - 28-Mar-182 - 24-Apr-183 - 30-Apr-184 - 22-May-185 At the end of the reporting period b. Movements in fully paid ordinary share capital ($) Balance at beginning of the reporting period Shares issued - 31-Jan-171 - 28-Mar-182 - 24-Apr-183 - 30-Apr-184 - 22-May-185 Costs of capital raising At the end of the reporting period |
30 June 2018 ~~$~~ 31 December 2017 ~~$~~ |
|
| 335,729,968 330,009,404 3,000,000 2,978,388 |
||
| 338,729,968 332,987,792 |
||
| No. Shares No. Shares 101,883,843 90,280,468 |
||
| – 11,603,375 19,080,045 – 694,831,892 – 2,702,152 – 68,734,589 – |
||
| 887,232,521 101,883,843 |
||
| 30 June 2018 $ 31 December 2017 **$7 ** |
||
| 329,987,792 329,032,074 – 1,375,000 152,640 – 5,558,654 – 21,617 – 549,877 – (540,612) (419,282) |
||
| 335,729,968 329,987,792 |
1On 31 January 2017 the Company issued 10,970,464 shares to Redfield Asset Management and 632,911 shares to Winic Pty Ltd at A$0.1185 as share placement to raise A$1.375,000.
2 On 28 March 2018 the Company issued 19,080,045 ordinary shares at A$0.008 as part of a share placement to raise A$152,640.
3On 24 April 2018 the Company issued 694,831,892 ordinary shares at A$0.008 as part of an Entitlement Offer to raise A$5,558,654.
4On 30 April 2018 the Company issued 2,702,152 ordinary shares at A$0.008 to Lanstead Capital LP to settle fees payable to Lanstead.
5On 22 May 2018 the Company issued 68,734,589 ordinary shares at A$0.008 as part of a share placement to raise A$549,877.
| c. Movements in partly paid ordinary share capital (No. Shares) Balance at beginning of the reporting period Shares issued Balance at the end of the reporting period |
30 June 2018 No. Shares 31 December 2017 No. Shares |
|---|---|
| 25,316,456 25,316,456 - - |
|
| 25,316,456 25,316,456 |
19
Report for the half year ended 30 June 2018
Metminco Limited ABN 43 119 759 349
==> picture [168 x 26] intentionally omitted <==
NOTES TO THE FINANCIAL STATEMENTS (continued) For the half year ended 30 June 2018
NOTE 12: ISSUED CAPITAL (continued)
| d. Movements in partly paid ordinary share capital ($) 30 June 2018 $ 31 December 2017 $ Balance at beginning of the reporting period 3,000,000 3,000,000 Shares issued - - At the end of the reporting period 3,000,000 3,000,000 e. Movement in options and performance rights 30 JUNE 2018 Grant Date Expiry Date Exercise Price $ Outstanding 31 December 2017 Granted during the year Exercised during the year Lapsed during the year Outstanding at 30 June 2018 |
d. Movements in partly paid ordinary share capital ($) 30 June 2018 $ 31 December 2017 $ Balance at beginning of the reporting period 3,000,000 3,000,000 Shares issued - - At the end of the reporting period 3,000,000 3,000,000 e. Movement in options and performance rights 30 JUNE 2018 Grant Date Expiry Date Exercise Price $ Outstanding 31 December 2017 Granted during the year Exercised during the year Lapsed during the year Outstanding at 30 June 2018 |
|---|---|
| 24 April 2018 1 June 2020 $0.011 30 April 2018 1 June 2020 $0.011 22 May 2018 1 June 2020 $0.011 29 May 2018 1 June 2020 $0.011 29 May 2018 31 Dec 2018 $0.012 29 May 2018 31 Dec 2019 $0.016 29 May 2018 31 Dec 2020 $0.024 29 May 2018 31 Dec 2018 $0.012 29 May 2018 31 Dec 2019 $0.016 29 May 2018 31 Dec 2019 $0.016 29 May 2018 31 Dec 2020 $0.024 29 May 2018 31 Dec 2020 $0.024 |
- 231,610,770 - - - 9,876,512 - - - 22,911,530 - - - 237,970,560 - - - 9,600,000 - - - 9,600,000 - - - 9,600,000 - - - 11,600,000 - - - 11,600,000 - - - 11,600,000 - - - 11,600,000 - - - 11,600,000 - - 24,691,358 589,169,372 - - 613,860,730 |
Options issued to advisors in consideration for capital raising fees and Options and Performance Rights issued to related parties under the Company’s Long-Term Incentive Plan (following approval at AGM held on 28 May 2018) are as follows.
| Recipient | Terms of issue | Options issued | Share based payment value |
|---|---|---|---|
| Redfield Asset Management Pty Ltd |
Options exercisable at $0.011 each on or before 1 June 2020 |
9,876,512 | $21,234 |
| Patersons Securities Ltd as underwriters or their nominee |
Optionsexercisable at $0.011 each on or before 1 June 2020 |
231,610,545 | $669,355 |
| Glensiter Lamont | Options issued under terms of Company’s Employee Long Term Incentive Plan |
14,400,000 | $7,153 |
| Roger Higgins | Options issued under terms of Company’s Employee Long Term Incentive Plan |
14,400,000 | $7,153 |
| Kevin Wilson | Performance Rights issued under terms of Company’s Employee Long Term Incentive Plan |
58,000,000 | $76,712 |
| TOTAL | $781,607 |
Options issued to advisers above were fair valued using the Binomial American Tree method of valuing securities.
20
Report for the half year ended 30 June 2018
Metminco Limited ABN 43 119 759 349
==> picture [168 x 26] intentionally omitted <==
NOTES TO THE FINANCIAL STATEMENTS (continued) For the half year ended 30 June 2018
NOTE 13: LOSS PER SHARE
| NOTE 13: LOSS PER SHARE | |
|---|---|
| a. Reconciliation of loss per share Loss Loss used in the calculation of basic and dilutive EPS b. Weighted average number of ordinary shares outstanding during the period used in calculating basic EPS Weighted average number of dilutive options outstanding c. Anti-dilutive options on issue not used in dilutive EPS calculation |
6 months ended 6 months ended 30 June 2018 $ 30 June 2017 $ |
| (5,598,767) (30,727,034) |
|
| (5,598,767) (30,727,034) |
|
| 30 June 2018 No. 30 June 2017 No. |
|
| 124,064,642 121,046,994 - - 613,860,730 100,000 |
NOTE 14: CONTROLLED ENTITIES
| COUNTRY OF INCORPORATION | PERCENTAGE OWNED |
PERCENTAGE OWNED |
|
|---|---|---|---|
| 30 JUNE 2018 | 31 DECEMBER 2017 | ||
| % | % | ||
| Controlled Entities consolidated | |||
| Subsidiaries of Metminco Limited: | |||
| Hampton Mining Limited | Australia | 100 | 100 |
| North Hill Holdings Group Inc. | British Virgin Islands | 100 | 100 |
| Wholly owned subsidiaries of North Hill Holdings | |||
| Group Inc.: | |||
| Cerro Norte Mining Inc. | British Virgin Islands | 100 | 100 |
| North Hill Ovalle Inc. | British Virgin Islands | 100 | 100 |
| North Hill Perú Inc. | British Virgin Islands | 100 | 100 |
| North Hill Colombia Inc. | British Virgin Islands | 100 | 100 |
| Minera Hampton Chile Limitada | Chile | 100 | 100 |
| Miraflores Hampton Colombia SAS | Colombia | 100 | 100 |
| Miraflores Compania Minera SAS | Colombia | 100 | 100 |
21
Report for the half year ended 30 June 2018
Metminco Limited ABN 43 119 759 349
==> picture [168 x 26] intentionally omitted <==
NOTES TO THE FINANCIAL STATEMENTS (continued)
For the half year ended 30 June 2018
NOTE 15: CAPITAL AND LEASING COMMITMENTS
| a) Operating Lease Commitments Non-cancellable operating leases contracted for but not capitalised in the financial statements Payable - minimum lease payments - not later than 12 months - between 12 months and 5 years - greater than 5 years |
30 June 2018 $ 31 December 2017 $ |
|---|---|
| 80,620 52,258 6,975 24,556 – – |
|
| 87,595 76,814 |
The Group has lease commitments over five premises in Australia and Colombia with terms ranging from 1 to 14 months. Rent is payable monthly in advance.
| b) | Exploration Tenement Licence Commitments | ||
|---|---|---|---|
| Mining and exploration licence fees for tenements held by the Group but not | |||
| yet capitalised in the financial statements | |||
| Payable (minimum license payments) | |||
| - not later than 12 months | 440,828 | 347,831 |
NOTE 16: CONTINGENT LIABILITIES
The Group is not aware of any contingent liabilities.
NOTE 17: EVENTS AFTER THE END OF THE PERIOD
Matters that have arisen in the interval between the end of the half year ended 30 June 2018 and the date of this report of a material or unusual nature are as follows:
Appointment of Nick Winer (2 August 2018) as Director of Exploration, based in Medellin, Colombia. Nick is a geologist with over 30 years’ experience in gold, base metals in South America and will lead the Company’s activities in Colombia, in particular, the advancement of the portfolio of gold assets in the Quinchia district.
On 13[th] September 2018, the Company entered into an unsecured loan facility arrangement with private investors to the value of $500,000 at a 12% coupon rate paid quarterly maturing 6 months from date of issue or earlier by the Company on 30 days’ notice or on completion of a proposed capital raising.
On 13[th] September 2018, the Company entered a Trading Halt on the ASX pending a corporate transaction and capital raising.
As at the date of this report, the Directors are not aware of any further matters that have arisen that have significantly affected, or may significantly affect, the operations of the Company
22
Report for the half year ended 30 June 2018
==> picture [168 x 26] intentionally omitted <==
Metminco Limited ABN 43 119 759 349
DIRECTORS’ DECLARATION
In the opinion of the Directors of Metminco Limited:
-
1) The consolidated financial statements of Metminco Limited are in accordance with the Corporations Act 2001, including:
-
a) complying with Accounting Standard AASB 134: Interim Financial Reporting; and
-
b) giving a true and fair view of the financial position as at 30 June 2018 and of its performance for the half-year ended on that date.
-
2) 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.
==> picture [148 x 29] intentionally omitted <==
Kevin Wilson
Dated: 13 September 2018
23
Report for the half year ended 30 June 2018
==> picture [158 x 31] intentionally omitted <==
Collins Square, Tower 1 727 Collins Street Melbourne Victoria 3000
Correspondence to: GPO Box 4736 Melbourne Victoria 3001
T +61 3 8320 2222 F +61 3 8320 2200 E [email protected] W www.grantthornton.com.au
Independent Auditor’s Review Report
To the Members of Metminco Limited
Report on the review of the half year financial report
Conclusion
We have reviewed the accompanying half year financial report of Metminco Limited (the ‘Company’), which comprises the consolidated statement of financial position as at 30 June 2018, 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, a description of accounting policies, other selected explanatory notes, and the directors’ declaration of the consolidated entity comprising both the Company and the entities it controlled at the half-year end or from time to time during the half year.
Based on our review, which is not an audit, nothing has come to our attention that causes us to believe that the half year financial report of Metminco Limited does not give a true and fair view of the financial position of the Company as at 30 June 2018, and of its financial performance and its cash flows for the half year ended on that date, in accordance with the Corporations Act 2001 , including complying with Accounting Standard AASB 134 Interim Financial Reporting .
Material uncertainty related to going concern
We draw attention to Note 1, in the financial report, which indicates that the consolidated entity incurred a net loss of $5,598,767 during the half year ended 30 June 2018 and has net cash used in operations (including payments for exploration) of $2,559,922 during the half-year ended 30 June 2018 and has a cash balance of $1,705,998, as of that date. These conditions, along with other matters set forth in Note 1, indicate the existence of a material uncertainty which may cast significant doubt about the Group’s ability to continue as a going concern and therefore, the Group may be unable to realise its assets and discharge its liabilities in normal course of business, and at the amounts stated in the financial report. Our report is not modified in relation to this matter.
Directors’ responsibility for the half year 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.
Grant Thornton Audit Pty Ltd ACN 130 913 594 a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389
www.grantthornton.com.au
‘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.
==> picture [157 x 31] intentionally omitted <==
Auditor’s responsibility
Our responsibility is to express a conclusion on the half year financial report based on our review. We conducted our review in accordance with Auditing Standard on Review Engagements ASRE 2410 Review of 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 the Corporations Act 2001 including giving a true and fair view of the Company’s financial position as at 30 June 2018 and its performance for the half year ended on that date, and complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001 . As the auditor of Metminco 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 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.
Independence
In conducting our review, we have complied with the independence requirements of the Corporations Act 2001.
==> picture [132 x 50] intentionally omitted <==
Grant Thornton Audit Pty Ltd Chartered Accountants
==> picture [94 x 50] intentionally omitted <==
B A Mackenzie Partner – Audit & Assurance
Melbourne, 13 September 2018