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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
----- End of picture text -----

Dated 12 February 2021

2

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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:

  1. The interim financial statements and notes, as set out on pages 4 to 10 are in accordance with the Corporations Act 2001 , including:

  2. (a) complying with Accounting Standard AASB 134: Interim Financial Reporting; and

  3. (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.

  4. 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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----- Start of picture text -----

Director ..................................................................
Andrew Van Heyst
----- End of picture text -----

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Director .................................................................. Ted Leschke

Dated 12 February 2021

11

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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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