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LODE RESOURCES LTD — Regulatory Filings 2021
Jun 29, 2021
65220_rns_2021-06-29_0aa8caeb-5ad0-4cb9-8ca0-7d7e62fda644.pdf
Regulatory Filings
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Lode Resources Ltd (formerly Lode Resources Pty Ltd) ABN: 30 637 512 415
Interim Financial Statements
For the Half Year Ended 31 December 2020
Lode Resources Ltd (formerly Lode Resources Pty Ltd)
ABN: 30 637 512 415
Contents
For the Half Year Ended 31 December 2020
| Page | |
|---|---|
| Interim Financial Statements | |
| Directors' Report | 1 |
| Auditor's Independence Declaration under Section 307C of the Corporations Act 2001 | 3 |
| Interim Statement of Profit or Loss and Other Comprehensive Income | 4 |
| Interim Statement of Financial Position | 5 |
| Interim Statement of Changes in Equity | 6 |
| Interim Statement of Cash Flows | 7 |
| Notes to the Financial Statements | 8 |
| Directors' Declaration | 11 |
| Independent Auditor's Review Report | 12 |
Lode Resources Ltd (formerly Lode Resources Pty Ltd)
ABN: 30 637 512 415
Directors' Report 31 December 2020
The directors submit the interim financial report of the Company for the half year ended 31 December 2020.
Directors
The names of each person who has been a director during the half year and to the date of this report are:
Andrew Van Heyst Ted Leschke Keith Mayes Jason Beckton Appointed 29 September 2020
Principal activities
The principal activities of Lode Resources Ltd during the financial half year was the acquisition of exploration projects through Exploration Licence Applications and the subsequent granting of Exploration Licences, completing extensive literature reviews of past exploration activities, gaining access through Rural Access and Compensation Agreements with surface landowners and carrying out reconnaissance style field activities.
No significant changes in the nature of the Company's activity occurred during the financial half year.
Review of operations
As of 31 December 2020, the Company had been granted four exploration licences, those being EL8980, EL8933, EL9003 and EL9004. Those licenses applied for and granted up to the date of this report are as follows:
| Project Uralla Webbs Consol Fender Elsinore Tea Tree Thor Uralla West |
Licence EL8980 EL8933 EL9003 EL9004 ELA6016 ELA6020 ELA6153 |
Grant /Application Date 16/01/2020 14/05/2020 12/10/2020 12/10/2020 06/07/2020 06/07/2020 29/10/2020 |
Expiry Date 16/01/2023 14/05/2023 12/10/2023 12/10/2023 n/a n/a n/a |
Commodity Gold Silver Copper Copper Gold Gold Gold |
Units 80 16 76 32 24 78 22 |
Area (sq. km) 237 48 223 95 71 231 65 |
Status Granted Granted Granted Granted Offer of grant Offer of grant Offer ofgrant |
|---|---|---|---|---|---|---|---|
| Total | 328 | 970 |
1
Lode Resources Ltd (formerly Lode Resources Pty Ltd)
ABN: 30 637 512 415
Directors' Report 31 December 2020
Auditor's independence declaration
The auditor's independence declaration in accordance with section 307C of the Corporations Act 2001 for the half year ended 31 December 2020 has been received and can be found on page 3 of the interim financial report.
This report is signed in accordance with a resolution of the Board of Directors.
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Director: ............................................................... Director: ................................................................
Andrew Van Heyst Ted Leschke
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Dated 12 February 2021
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PKF(NS) Audit & Assurance Limited Partnership ABN 91 850 861 839
Liability limited by a scheme approved under Professional Standards Legislation
Sydney Newcastle Level 8, 1 O’Connell Street 755 Hunter Street Sydney NSW 2000 Australia Newcastle West NSW 2302 Australia GPO Box 5446 Sydney NSW 2001 PO Box 2368 Dangar NSW 2309 p +61 2 8346 6000 p +61 2 4962 2688 f +61 2 8346 6099 f +61 2 4962 3245
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PKF(NS) Audit & Assurance Limited Partnership is a member firm of the PKF International Limited family of legally independent firms and does not accept any responsibility or liability for the actions or inactions of any individual member or correspondent firm or firms. For office locations visit www.pkf.com.au
Lode Resources Ltd (formerly Lode Resources Pty Ltd)
ABN: 30 637 512 415
Interim Statement of Profit or Loss and Other Comprehensive Income For the Year Ended 31 December 2020
| Legal and professional expenses Other expenses Loss before income tax Income tax expense Loss for the period Other comprehensive income Total comprehensive expense for the period |
31 December 2020 $ (40,927) (42,784) |
31 December 2019 $ - - |
|
|---|---|---|---|
| (83,711) - |
- - |
||
| (83,711) | - | ||
| - | - | ||
| (83,711) | - |
The accompanying notes form part of these financial statements.
4
Lode Resources Ltd (formerly Lode Resources Pty Ltd)
ABN: 30 637 512 415
Interim Statement of Financial Position
As At 31 December 2020
| Note ASSETS CURRENT ASSETS Cash and cash equivalents Trade and other receivables TOTAL CURRENT ASSETS NON-CURRENT ASSETS Other financial assets Exploration and evaluation assets 4 TOTAL NON-CURRENT ASSETS TOTAL ASSETS LIABILITIES CURRENT LIABILITIES Trade and other payables TOTAL CURRENT LIABILITIES TOTAL NON-CURRENT LIABILITIES TOTAL LIABILITIES NET ASSETS EQUITY Issued capital 5 Accumulated losses TOTAL EQUITY |
31 December 2020 $ 579,774 151,454 |
30 June 2020 $ 299,082 1,073 |
|---|---|---|
| 731,228 | 300,155 | |
| 40,000 221,263 |
20,000 30,699 |
|
| 261,263 | 50,699 | |
| 992,491 | 350,854 | |
| 33,059 | 8,163 | |
| 33,059 | 8,163 | |
| - | - | |
| 33,059 | 8,163 | |
| 959,432 | 342,691 | |
| 1,065,474 (106,042) |
365,022 (22,331) |
|
| 959,432 | 342,691 |
The accompanying notes form part of these financial statements.
5
Lode Resources Ltd (formerly Lode Resources Pty Ltd)
ABN: 30 637 512 415
Interim Statement of Changes in Equity For the Year Ended 31 December 2020
| Issued capital $ 365,022 - - |
Accumulated losses $ (22,331) (83,711) - |
Total $ 342,691 (83,711) - |
||
|---|---|---|---|---|
| Balance at 1 July 2020 | ||||
| Loss for the period | ||||
| Other comprehensive income | ||||
| Total comprehensive expense for the period Transactions with owners in their capacity as owners |
- 700,452 |
- - |
- 700,452 |
|
| Contribution of equity, net of transaction costs | ||||
| Balance at 31 December 2020 | 1,065,474 | (106,042) | 959,432 | |
| Balance at 18 November 2019 | - - - |
- - - |
- - - |
|
| Profit for the period | ||||
| Other comprehensive income for the period | ||||
| Total comprehensive income for the period Transactions with owners in their capacity as owners |
- 1 |
- - |
- 1 |
|
| Shares issued during the period | ||||
| Balance at 31 December 2019 | 1 | - | 1 |
The accompanying notes form part of these financial statements.
6
Lode Resources Ltd (formerly Lode Resources Pty Ltd)
ABN: 30 637 512 415
Interim Statement of Cash Flows
For the Year Ended 31 December 2020
| CASH FLOWS FROM OPERATING ACTIVITIES: Payments to suppliers Net cash used in operating activities CASH FLOWS FROM INVESTING ACTIVITIES: Payments in relation to exploration and evaluation activities Net cash used in investing activities CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from the issue of shares, net of costs Net cash provided by financing activities Net increase in cash and cash equivalents held Cash and cash equivalents at beginning of half year Cash and cash equivalents at end of the half year |
31 December 2020 $ (76,714) |
31 December 2019 $ - |
|---|---|---|
| (76,714) | - | |
| (190,564) - |
||
| (190,564) | - | |
| 547,970 - |
||
| 547,970 | - | |
| 280,692 - 299,082 - |
||
| 579,774 | - |
The accompanying notes form part of these financial statements.
7
Lode Resources Ltd (formerly Lode Resources Pty Ltd)
ABN: 30 637 512 415
Notes to the Financial Statements
For the Year Ended 31 December 2020
The interim financial report covers Lode Resources Ltd as an individual entity. Lode Resources Ltd is a for-profit Company limited by shares, incorporated and domiciled in Australia.
The functional and presentation currency of Lode Resources Ltd is Australian dollars.
The Company was incorporated on 18 November 2019 and accordingly the comparative period is shorter than the current period.
On 21 October 2020, after a special resolution by shareholders, the Company applied to ASIC to become a public company.
The financial report was authorised for issue by the Directors on 12 February 2021.
Comparatives are consistent with prior periods, unless otherwise stated.
1 Basis of Preparation
This condensed interim financial report for the reporting period ending 31 December 2020 has been prepared in accordance with the requirements of the Corporations Act 2001 and Australian Accounting Standard AASB 134: Interim Financial Reporting . Compliance with AASB 134 ensures compliance with International Financial Reporting Standard IAS 34 'Interim Financial Reporting'.
The interim financial report is intended to provide users with an update on the latest annual financial statements of Lode Resources Ltd. As such it does not contain information that represents relatively insignificant changes occurring during the half year within Lode Resources Ltd. This condensed financial report does not include all the notes normally included in an annual financial report. It is therefore recommended that this financial report be read in conjunction with the annual financial statements of Lode Resources Ltd for the year ended 30 June 2020.
The same accounting policies and methods of computation have been followed in this interim financial report as were applied in the most recent annual financial statements.
The financial statements have been prepared on an accruals basis and are based on historical costs modified, where applicable, by the measurement at fair value of selected non-current assets, financial assets and financial liabilities.
Significant accounting policies adopted in the preparation of these financial statements are presented below and are consistent with prior reporting periods unless otherwise stated.
2 Summary of Significant Accounting Policies
(a) New Accounting Standards and Interpretations
The AASB has issued new and amended Accounting Standards and Interpretations that have mandatory application dates for future reporting periods. The Company has decided not to early adopt these Standards.
3 Critical Accounting Estimates and Judgments
Company management make estimates and judgements during the preparation of these financial statements regarding assumptions about current and future events affecting transactions and balances.
These estimates and judgements are based on the best information available at the time of preparing the financial statements, however as additional information is known then the actual results may differ from the estimates.
The significant estimates and judgements made have been described below.
8
Lode Resources Ltd (formerly Lode Resources Pty Ltd)
ABN: 30 637 512 415
Notes to the Financial Statements For the Year Ended 31 December 2020
3 Critical Accounting Estimates and Judgments
Key judgments - capitalisation of exploration and evaluation expenditure
The Company capitalises expenditure relating to exploration and evaluation where it is considered likely to be recoverable or where the activities have not reached a stage which permits a reasonable assessment of the existence of reserves. While there are certain areas of interest from which no reserves have been extracted, are of the continued belief that such expenditure should not be written off since feasibility studies in such areas have not yet concluded. Such capitalised expenditure is carried at the end of the reporting period at $221,263 (June 2020: $30,699).
4 Exploration, Evaluation and Development Assets
| 2020 Balance at beginning of the half year Expenditure incurred Balance at end of the half year |
Exploration and evaluation $ 30,699 190,564 |
|---|---|
| 221,263 |
The recoverability of the carrying amount of the exploration and evaluation assets is dependent on successful development and commercial exploitation, or alternatively, sale of the respective areas of interest.
The recoverable amount of development expenditure is determined as the higher of its fair value less costs to sell and its value in use.
A summary of licences applied for and granted as at the date of this report are as follows:
| Project | Licence | Grant / application date |
Expiry date | Commodity | Units | Area(km2) | Status |
|---|---|---|---|---|---|---|---|
| Uralla Webbs Consol Fender Elsinore Tea Tree Thor Uralla West |
EL8980 EL8933 EL9003 EL9004 ELA6016 ELA6020 ELA6153 |
16/01/2020 14/05/2020 12/10/2020 12/10/2020 06/07/2020 06/07/2020 19/10/2020 |
16/01/2023 14/05/2023 12/10/2023 12/10/2023 n/a n/a n/a |
Gold Silver Copper Copper Gold Gold Gold |
80 16 76 32 24 78 22 |
237 48 223 95 71 231 65 |
Granted Granted Granted Granted Offer of grant Offer of grant Offer ofgrant |
| Total | 328 | 970 |
9
Lode Resources Ltd (formerly Lode Resources Pty Ltd)
ABN: 30 637 512 415
Notes to the Financial Statements For the Year Ended 31 December 2020
5 Issued Capital
| Issued Capital | |
|---|---|
| 46,660,002 (June 2020: 46,640,002) Ordinary shares 7,730,000 (June 2020: - ) Subscribed for but unissued ordinary shares Capital raising costs Total |
31 December 2020 $ 30 June 2020 $ 375,022 365,022 773,000 - (82,548) - |
| 1,065,474 365,022 |
(a) Subscribed for ordinary shares
During the period, the Company commenced a pre-IPO round of equity raising. At 31 December 2020, the round had closed and the Company had received and accepted applications for 7,730,000 ordinary shares at an issue price of $0.10 each. On 5 January 2021, the Company completed this placement by issue of ordinary share certificates to shareholders.
6 Contingencies
In the opinion of the Directors, the Company did not have any contingencies at 31 December 2020 (30 June 2020: none).
7 Events Occurring After the Reporting Date
The interim financial report was authorised for issue on 12 February 2021 by the board of directors.
On 5 January 2021, the Company completed a placement to sophisticated investors raising $773,000 before costs by the issue of 7,730,000 ordinary shares at an issue price of $0.10 each.
Except for the above, no other matters or circumstances have arisen since the end of the financial half year which significantly affected or could significantly affect the operations of the Company, the results of those operations or the state of affairs of the Company in future financial years.
8 Statutory Information
The registered office and principal place of business of the company is:
Lode Resources Ltd C/o ESN Partners Australia Square Level 30 264 - 278 George Street Sydney NSW 2000
10
Lode Resources Ltd (formerly Lode Resources Pty Ltd)
ABN: 30 637 512 415
Directors' Declaration
The directors of the Company declare that:
-
The interim financial statements and notes, as set out on pages 4 to 10 are in accordance with the Corporations Act 2001 , including:
-
(a) complying with Accounting Standard AASB 134: Interim Financial Reporting; and
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(b) give a true and fair view of the Company's financial position as at 31 December 2020 and of its performance for the half-year ended on that date.
-
In the directors' opinion, there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.
This declaration is made in accordance with a resolution of the Board of Directors.
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Director ..................................................................
Andrew Van Heyst
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Director .................................................................. Ted Leschke
Dated 12 February 2021
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PKF(NS) Audit & Assurance Limited Sydney Newcastle Partnership Level 8, 1 O’Connell Street 755 Hunter Street ABN 91 850 861 839 Sydney NSW 2000 Australia Newcastle West NSW 2302 Australia GPO Box 5446 Sydney NSW 2001 PO Box 2368 Dangar NSW 2309 Liability limited by a scheme approved under Professional p +61 2 8346 6000 p +61 2 4962 2688 f +61 2 8346 6099 f +61 2 4962 3245
Liability limited by a scheme approved under Professional Standards Legislation
PKF(NS) Audit & Assurance Limited Partnership is a member firm of the PKF International Limited family of legally independent firms and does not accept any responsibility or liability for the actions or inactions of any individual member or correspondent firm or firms. For office locations visit www.pkf.com.au
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