LYCOPODIUM LIMITED — Annual Report 2013

Aug 22, 2013

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Lycopodium Limited

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ABN 83 098 556 159

Level 5, 1 Adelaide Terrace East Perth, Western Australia 6004 Australia

PO Box 6832 East Perth, Western Australia 6892 Australia T: +61 (0) 8 6210 5222 www.lycopodium.com.au

ASX RELEASE

LYCOPODIUM LIMITED 2012/13 RESULTS

23 August 2012

Revenue : $246 million, up 6% from 2012 result Profit Before Tax : $28.5 million, down 9% from 2012 result Profit After Tax : $22.5 million, up 1% from 2012 result Earnings Per Share : 57 cents per share, down 1% from 2012 Total Dividend : 36 cents per share, up 9% from 2012

The Directors of Lycopodium are pleased to be able to report a strong result for the 2012/13 financial year, replicating the prior year’s record operating result

During the financial year ended 30 June 2013, Lycopodium realised revenues of $246 million, a 6% increase on the $232 million in the previous financial year. Net profit after tax was $22.5 million, as compared to $22.3 million in the previous financial year, a 1% increase. The minor reduction in margin reflects the tightening of market conditions being largely offset by the recovery of prior year tax losses and the full year’s equity accounting of the profit component of our 50% owned Pilbara EPCM joint venture.

In addition to the segment reporting format in the Appendix 4E report, we are also including our supplemental segment reporting format (over page).

The Directors have resolved to pay a final dividend of 21 cents fully franked, reflecting the strong profit result. The total dividend for the year is 36 cents fully franked as compared to 33 cents in the prior year.

The result reflects the peak in construction and commissioning activities prevailing across the major projects and the strong demand for services across the group. Our minerals workload remains spread across a range of commodities, notably gold, iron ore, nickel and copper and includes both domestic and international projects.

However as previously advised, there are strong headwinds in our sector and the demand for Lycopodium’s services in 2013/14 is anticipated to be lower than in the past two financial years.

The reduction in demand is attributable to the following dynamics:

• Lower commodity prices across a wider range of commodities, which now includes gold.

• Major mining companies belt tightening across their operations, optimising existing assets and limiting capital expenditure to brownfield optimisations rather than major greenfield project developments.

• Junior mining companies finding it difficult to raise equity for studies and projects.

• The manufacturing sector continuing its decline within Australia.

• Increasing competition between service providers, increasing appetite for risk, as well as lowering margin expectations.

Coupled with the dynamics above, our three major projects - ~~T~~ ropicana, Akyem and Marandoo - are nearing construction completion and commissioning activities are in progress. Whilst these have insulated Lycopodium through the past financial year, each of these projects will be completed in the first half of the current financial year. Equivalent greenfield EPCM opportunities have not yet been secured to replace these major projects, resulting in an anticipated shortfall in revenue opportunities.

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On the positive side, we are extremely pleased to announce the award of detailed design services in relation to the processing plant and selected infrastructure for First Quantum Minerals’ world class, Cobre Panama Project. This extends our long term association with First Quantum Minerals and represents our first project in the region.

We also note that the demand for technical services across our offices is showing some early signs of improvement. These improvements relate to operational efficiency and optimisation services, which in time should translate into brownfield EPCM opportunities.

At this point in time we have updated our guidance, but believe a range is more appropriate given the reduced visibility coming into this financial year. Our guidance for the 2013/14 financial year reflects revenues of $140-170 million and a net profit after tax of $11.4-13.8 million. We will continue to actively monitor our forecasts, particularly given the range in revenues and anticipated lower margins.

Lycopodium is extremely proud of the achievements of our personnel over the last year, particularly given the high levels of construction and commissioning activities at the various sites. The Board of Directors acknowledges that the company’s ability to continue to deliver world class services to our Clients and to maintain and enhance the company’s performance and capability is dependent on the continued commitment and support of our personnel.

Dividend Entitlements

The final dividend of 21 cents per share fully franked will be paid to shareholders on 15 October 2013, with a record date of 2 October 2013.

For further information: Rod Leonard Managing Director T: +61 8 6210 5222

Lycopodium Limited

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Lycopodium Ltd Segment reporting (unaudited) FYE 29 JUNE 2013

EPCM Design & construct (lump sum) Study services Project services Unallocated revenue Unallocated revenue less unallocated expenses Profit before income tax expense Income tax expense Profit for the full-year	Segment revenues Jun-13 Jun-12 137,853,344 156,722,514 11,353,011 2,449,167 17,436,631 29,243,973 77,350,868 40,462,773		Segment results Jun-13 Jun-12 22,780,035 27,044,193 1,583,480 601,812 3,449,751 4,871,054 12,957,699 6,665,292
	243,993,853 228,878,426 1,946,239 3,408,556		40,770,965 39,182,351 0 0
	245,940,092 232,286,982		40,770,965 39,182,351 (12,236,776) (7,410,574)
			28,534,189 31,771,777 (5,993,750) (9,416,678)
			22,540,439 22,355,099

Lycopodium Limited

Page 3

Lycopodium Limited and Controlled Entities ABN 83 098 556 159

Appendix 4E - Preliminary Final Report for the year ended 30 June 2013

Lycopodium Limited and Controlled Entities ABN 83 098 556 159 Appendix 4E - Preliminary Final Report 30 June 2013

Lodged with the ASX under Listing Rule 4.3A. This information should be read in conjunction with the Annual financial report

Contents

Contents
	Page
Results for Announcement to the Market	1
Preliminary Statement of Comprehensive Income	2
Preliminary Balance Sheet	3
Preliminary Statement of Changes in Equity	4
Preliminary Statement of Cash Flows	5
Preliminary Selected Notes to the Financial Statements	6
Supplementary Appendix 4E information	17

Lycopodium Limited and Controlled Entities Appendix 4E - Preliminary Final Report For the year ended 30 June 2013

Results for announcement to the market

						$
from ordinary activities Revenue (Appendix 4E item 2.1)	Up		5.9%	to		245,940,092
from ordinary activities after tax Profit attributable to members (Appendix 4E item 2.2)	Up		0.8%	to		22,540,439
for the period attributable to Net profit members (Appendix 4E item 2.3)	Up		0.8%	to		22,540,439
		$			$
Dividends / distributions (Appendix 4E item 2.4)		Amount per security			Franked amount per security
(cents) Final dividend		21.0			21.0
Key ratios		2013			2012
		June			June
Basic earningsper share(cents)		56.5			57.3
Net tangible assets per shares (cents)		159.8			139.1

Record date for determining entitlements to the final dividends

2 October 2013

1

Lycopodium Limited and Controlled Entities Appendix 4E - Preliminary Final Report Preliminary Statement of Comprehensive Income For the year ended 30 June 2013

		Consolidated	Consolidated
		2013	2012
	Notes	$	$
Revenue from operations	3	245,940,092	232,286,982
Employee benefits expense		(118,107,866)	(111,944,909)
Depreciation and amortisation expense	4	(2,192,104)	(1,784,442)
Project expenses		(9,748,777)	(10,581,901)
Equipment and materials		(5,665,636)	(839,435)
Contractors		(68,181,612)	(58,881,655)
Administration and management costs		(18,667,684)	(16,431,351)
Loss on disposal of asset		(235,536)	(1,503)
Finance costs		(232,023)	(330,272)
Share of net profit of joint ventures accounted for using the equity method	10	5,625,335	280,263
Profit before income tax		28,534,189	31,771,777
Income tax expense	5	(5,993,750)	(9,416,678)
Profit for the year		22,540,439	22,355,099
Other comprehensive income/(expense)
Items that may be reclassified to profit or loss
Changes in the fair value of available-for-sale financial assets	6(a)	(2,000)	(23,000)
Exchange differences on translation of foreign operations	6(a)	1,045,265	(336,980)
Income tax relating to components of other comprehensive income		600	6,900
Other comprehensive income/(expense) for the year, net of tax		1,043,865	(353,080)
Total comprehensive income for the year		23,584,304	22,002,019
Profit for the year is attributable to:
Owners of Lycopodium Limited		21,931,946	22,143,034
Non-controlling interests		608,493	212,065
		22,540,439	22,355,099
Total comprehensive income for the year is attributable to:
Owners of Lycopodium Limited		22,975,811	21,789,954
Non-controlling interests		608,493	212,065
		23,584,304	22,002,019
		Cents	Cents
Earnings per share for profit attributable to the ordinary equity
company: holders of the
Basic earnings per share		56.5	57.3
Diluted earnings per share		55.4	56.0

The above preliminary statement of comprehensive income should be read in conjunction with the accompanying notes.

2

Lycopodium Limited and Controlled Entities Appendix 4E - Preliminary Final Report Preliminary Balance Sheet As at 30 June 2013

Notes ASSETS Current assets Cash and cash equivalents Trade and other receivables Other current assets Total current assets Non-current assets Investments accounted for using the equity method 10 Available-for-sale financial assets Property, plant and equipment Intangible assets Other receivables Deferred tax assets Total non-current assets Total assets LIABILITIES Current liabilities Trade and other payables Borrowings Current tax liabilities Provisions Total current liabilities Non-current liabilities Borrowings Provisions Total non-current liabilities Total liabilities Net assets EQUITY Contributed equity Reserves 6(a) Retained profits 6(b) Parent entity interest Non-controlling interests 7 Total equity	Consolidated 2013 $ 2012 $ 34,997,159 27,768,444 53,254,129 52,590,370 4,549,506 3,547,988
	92,800,794 83,906,802
	5,905,599 280,264 7,000 9,000 4,659,138 5,308,394 7,163,778 6,113,748 1,050,335 1,233,835 8,026,369 4,535,790
	26,812,219 17,481,031
	119,613,013 101,387,833
	44,657,595 34,158,533 1,763,637 1,622,503 294,582 2,176,954 1,297,956 1,097,956
	48,013,770 39,055,946
	1,012,359 1,535,136 1,157,067 917,164
	2,169,426 2,452,300
	50,183,196 41,508,246
	69,429,817 59,879,587
	18,951,697 18,730,297 1,140,385 294,906 48,639,753 40,689,644
	68,731,835 59,714,847 697,982 164,740
	69,429,817 59,879,587

The above preliminary balance sheet should be read in conjunction with the accompanying notes.

3

Lycopodium Limited and Controlled Entities Appendix 4E - Preliminary Final Report Preliminary Statement of Changes in Equity For the year ended 30 June 2013

Consolidated entity Balance at 1 July 2011 Profit for the year Other comprehensive income Total comprehensive income for the year Transactions with owners in their capacity as owners: Non-controlling interests on acquisition of subsidiary Foreign currency translation with non-controlling interest Dividends provided for or paid Performance rights - value of rights Balance at 30 June 2012 Balance at 1 July 2012 Profit for the year Other comprehensive income Total comprehensive income for the year Transactions with owners in their capacity as owners: Contributions of equity, net of transaction costs and tax Foreign currency translation with non-controlling interest Dividends provided for or paid Performance rights - value of rights Performance rights - transfer on exercise Balance at 30 June 2013	Contributed equity $ Retained profits $ Foreign currency translation reserve $ Available for sale investment revaluation reserve $ Performance rights reserve $ Non-con- trolling interests $ Total equity $ 18,730,297 30,916,243 (267,686) (61,600) 418,604 (48,764) 49,687,094 - 22,143,034 - - - 212,065 22,355,099 - - (336,980) (16,100) - - (353,080)
	- 22,143,034 (336,980) (16,100) - 212,065 22,002,019
	- - - - - 27 27 - - - - - 1,412 1,412 - (12,369,633) - - - - (12,369,633) - - - - 558,668 - 558,668
	- (12,369,633) - - 558,668 1,439 (11,809,526)
	18,730,297 40,689,644 (604,666) (77,700) 977,272 164,740 59,879,587
	18,730,297 40,689,644 (604,666) (77,700) 977,272 164,740 59,879,587 - 21,931,946 - - - 608,493 22,540,439 - - 1,045,265 (1,400) - - 1,043,865 - 21,931,946 1,045,265 (1,400) - 608,493 23,584,304 221,400 - - - - - 221,400 - - - - - (75,251) (75,251) - (13,981,837) - - - - (13,981,837) - - - - 23,014 - 23,014 - - - - (221,400) - (221,400) 221,400 (13,981,837) - - (198,386) (75,251) (14,034,074) 18,951,697 48,639,753 440,599 (79,100) 778,886 697,982 69,429,817

The above preliminary statement of changes in equity should be read in conjunction with the accompanying notes.

4

Lycopodium Limited and Controlled Entities Appendix 4E - Preliminary Final Report Preliminary Statement of Cash Flows For the year ended 30 June 2013

Notes Cash flows from operating activities Receipts from customers (inclusive of goods and services tax) Payments to suppliers and employees (inclusive of goods and services tax) Interest received Interest paid Income taxes paid Net cash inflow from operating activities 12 Cash flows from investing activities Payments for property, plant and equipment Payments for intangible assets Proceeds from sale of property, plant and equipment Net cash outflow from investing activities Cash flows from financing activities Proceeds from borrowings Repayment of borrowings Dividends paid to company's shareholders 8 Repayments of hire purchase and lease liabilities Proceeds from repayment of loans under the senior manager share acquisition plan Net cash outflow from financing activities Net increase in cash and cash equivalents Cash and cash equivalents at the beginning of the financial year Effects of exchange rate changes on cash and cash equivalents Cash and cash equivalents at end of year	Consolidated 2013 $ 2012 $ 263,367,380 238,619,585 (229,460,274) (208,294,894)
	33,907,106 30,324,691 958,113 1,174,278 (22) (28,528) (11,366,101) (13,737,993)
	23,499,096 17,732,448
	(990,509) (1,430,323) (1,368,569) (158,656) - 2,890
	(2,359,078) (1,586,089)
	1,676,587 240,801 (1,058,377) (1,137,321) (13,981,837) (12,369,633) (1,575,223) (1,372,002) 183,500 396,039
	(14,755,350) (14,242,116)
	6,384,668 1,904,243 27,768,444 26,199,742 844,047 (335,541)
	34,997,159 27,768,444

The above preliminary statement of cash flows should be read in conjunction with the accompanying notes.

5

Lycopodium Limited and Controlled Entities Appendix 4E - Preliminary Final Report Preliminary Selected Notes to the Financial Statements For the year ended 30 June 2013

1 Summary of significant accounting policies

(a) Basis of preparation

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

As such, this preliminary financial report does not include all the notes of the type included in an annual financial report and accordingly, should be read in conjunction with the annual report for the year ended 30 June 2012 and with any public announcement made by Lycopodium Limited during the period in accordance with the continuous disclosure requirements of the Corporations Act 2001 .

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

2 Segment information

(a) Description of segments

Management has determined the operating segments based on the reports reviewed by the Board of Directors that are used to make strategic decisions.

The Board considers the business from both a product and geographic perspective and has identified nine operating segments of which three are reportable in accordance with the requirements of AASB 8.

The Corporate Services segment consists of managerial and legal services provided to the group in addition to strategic investment holdings.

The Minerals segment consists of engineering and related services provided to the extractive mining industry. The clients, including junior exploration companies and major multinational producers, are developing projects for a wide range of commodities. These projects range in scope from large greenfield projects involving process plant and equipment, civil, building works, control systems, services and infrastructure to small skid-mounted pilot plants.

The Project Services Africa segment consists of project management, construction management and commissioning services provided to the extractive mining industry in Africa.

All other operating segments are not reportable operating segments, as they fall under the quantitative thresholds of AASB 8. The results of these operations are included in the 'Other' column.

6

Lycopodium Limited and Controlled Entities Appendix 4E - Preliminary Final Report Preliminary Selected Notes to the Financial Statements For the year ended 30 June 2013 (continued)

2 Segment information (continued)

(b) Segment information provided to the Board of Directors

The segment information provided to the Board of Directors for the reportable segments for the year ended 30 June 2013 and 30 June 2012 are as follows:

2013		Corporate Services		Minerals	Project Services Africa	Project Services Africa		Other		Total
Total segment revenue Inter-segment revenue Revenue from external customers Profit / (loss) before tax Depreciation and amortisation Income tax expense Total segment assets Total assets includes: Additions to non-current assets (other than financial assets and deferred tax) Total segment liabilities		$ 21,148,404 (21,025,563) 122,841 (1,264,278) (457,450) 594 12,791,180 - 1,267,569		$ 192,882,374 (13,300,810) 179,581,564 17,966,938 (951,749) (3,325,473) 69,806,003 2,109,909 34,999,364		$ 28,987,639 (448,024) 28,539,615 4,086,969 (13,463) (1,033,737) 12,060,806 35,485 7,262,607		$ 52,243,557 (14,547,485) 37,696,072 7,789,560 (769,442) (1,635,134) 24,193,836 557,054 11,150,112		$ 295,261,974 (49,321,882) 245,940,092 28,579,189 (2,192,104) (5,993,750) 118,851,825 2,702,448 54,679,652

7

Lycopodium Limited and Controlled Entities Appendix 4E - Preliminary Final Report Preliminary Selected Notes to the Financial Statements For the year ended 30 June 2013 (continued)

2 Segment information (continued)

(b) Segment information provided to the Board of Directors (continued)

2012		Corporate Services		Minerals	Project Services Africa	Project Services Africa		Other		Total
Total segment revenue Inter-segment revenue Revenue from external customers Profit / (loss) before tax Depreciation and amortisation Income tax expense Total segment assets Total assets includes: Additions to non-current assets (other than financial assets and deferred tax) Total segment liabilities		$ 15,598,839 (15,217,200) 381,639 (1,374,737) (457,614) 17,660 11,049,357 - 2,303,240		$ 203,828,953 (18,942,790) 184,886,163 25,872,769 (809,977) (7,202,077) 65,494,878 1,818,932 33,004,565		$ 29,852,527 (2,559,759) 27,292,768 4,712,855 (11,480) (1,126,626) 10,110,613 1,223 6,055,186		$ 29,042,949 (9,316,537) 19,726,412 2,605,890 (505,371) (1,105,635) 20,837,718 1,118,400 11,698,960		$ 278,323,268 (46,036,286) 232,286,982 31,816,777 (1,784,442) (9,416,678) 107,492,566 2,938,555 53,061,951

(c) Other segment information

(i) Segment revenue

Sales between segments are carried out at arm's length and are eliminated on consolidation. The revenue from external parties reported to the board of directors is measured in a manner consistent with that in the consolidated statement of comprehensive income.

The entity is domiciled in Australia. The result of its revenue from external customers in Australia is $117,791,446 (2012: $127,697,172), and the total of revenue from external customers from other countries is $128,148,645 (2012: $104,589,810). Segment revenues are allocated based on the country in which the customer is located.

Revenues of approximately $122,976,660 (2012: $137,555,770) are derived from the top 3 customers. These revenues are attributable to the Minerals segment.

8

Lycopodium Limited and Controlled Entities Appendix 4E - Preliminary Final Report Preliminary Selected Notes to the Financial Statements For the year ended 30 June 2013 (continued)

2 Segment information (continued)

(c) Other segment information

(continued)

(ii) Segment profit before tax

The Board of Directors assesses the performance of the operating segments based on a measure of adjusted profit before tax.

A reconciliation of segment profit before tax to the profit before tax in the statement of comprehensive income is provided as follows:

Segment profit before tax Amortisation of customer relationships Profit before income tax as per preliminary statement of comprehensive income	Consolidated 2013 $ 2012 $ 28,579,189 31,816,777 (45,000) (45,000)
	28,534,189 31,771,777

(iii) Segment assets

The amounts provided to the Board of Directors with respect to total assets are measured in a manner consistent with that of the financial report. These assets are allocated based on the operations of the segment and the physical location of the asset.

Reportable segments' assets are reconciled to total assets as per the preliminary balance sheet as follows:

Segment assets Intersegment eliminations Intangibles arising on consolidation Deferred tax arising on consolidation Total assets as per the preliminary balance sheet	Consolidated 2013 $ 2012 $ 118,851,825 107,492,566 (4,852,804) (11,750,223) 5,654,492 5,699,490 (40,500) (54,000)
	119,613,013 101,387,833

(iv) Segment liabilities

The amounts provided to the Board of Directors with respect to total liabilities are measured in a manner consistent with that of the financial report. These liabilities are allocated based on the operations of the segment.

Reportable segments' liabilities are reconciled to total liabilities as per the preliminary balance sheet as follows:

Segment liabilities Intersegment eliminations Total liabilities as per the preliminary balance sheet	Consolidated 2013 $ 2012 $ 54,679,652 53,061,951 (4,496,456) (11,553,705)
	50,183,196 41,508,246

9

Lycopodium Limited and Controlled Entities Appendix 4E - Preliminary Final Report Preliminary Selected Notes to the Financial Statements For the year ended 30 June 2013 (continued)

3 Revenue

From operations Sales revenue Contract revenue Other revenue Rents and sub-lease rentals Bank interest Other revenue Total revenue from operations 4 Expenses Profit before income tax includes the following specific expenses: Depreciation Plant and equipment Leasehold improvements Leased plant and equipment Motor vehicles Total depreciation Amortisation Computer software Customer contracts and relationship Total amortisation Total depreciation and amortisation Finance costs Interest and finance charges paid/payable Net loss on disposal of property, plant and equipment Rental expense relating to operating leases Minimum lease payments	Consolidated 2013 $ 2012 $ 244,800,461 230,919,074 14,427 84,467 929,771 1,222,046 195,433 61,395
	1,139,631 1,367,908
	245,940,092 232,286,982
	2013 $ 2012 $ 520,972 457,006 531,774 499,983 788,846 589,230 23,949 25,722
	1,865,541 1,571,941
	281,563 167,501 45,000 45,000
	326,563 212,501
	2,192,104 1,784,442
	232,023 330,272
	235,536 1,503
	7,511,313 6,358,534

4 Expenses

10

Lycopodium Limited and Controlled Entities Appendix 4E - Preliminary Final Report Preliminary Selected Notes to the Financial Statements For the year ended 30 June 2013 (continued)

5 Income tax expense

(a) Income tax expense

(a) Income tax expense
Current tax Deferred tax Adjustments for current tax of prior periods Deferred income tax included in income tax expense comprises: Increase in deferred tax assets (Decrease)/increase in deferred tax liabilities	Consolidated 2013 $ 2012 $ 10,073,708 9,994,620 (3,480,144) (202,089) (599,814) (375,853)
	5,993,750 9,416,678
	(3,123,441) (401,934) (356,703) 199,845
	(3,480,144) (202,089)

(b) Numerical reconciliation of income tax expense to prima facie tax payable

Profit before income tax expense Tax at the Australian tax rate of 30% (2012: 30%) Tax effect of amounts which are not deductible (taxable) in calculating taxable income: Share-based payment Sundry items Non-assessable, non-exempt income and related non-deductible expenses Exchange differences on translation Adjustments for current tax of prior periods - over provision of prior year income tax Difference in overseas tax rates Previously unrecognised tax losses now recouped to reduce current tax expense Deferred tax asset not recognised Income tax paid in foreign jurisdiction Share of net profit of joint ventures accounted for using the equity method Income tax expense	Consolidated 2013 $ 2012 $ 28,534,189 31,771,777 8,560,257 9,531,533 6,904 167,600 42,723 80,238 (155,351) 9,472 180,350 (72,170)
	8,634,883 9,716,673 (599,814) (375,853) (403,923) (322,070) (761,551) (7,436) 358,847 449,341 452,909 40,102 (1,687,601) (84,079)
	5,993,750 9,416,678

11

Lycopodium Limited and Controlled Entities Appendix 4E - Preliminary Final Report Preliminary Selected Notes to the Financial Statements For the year ended 30 June 2013 (continued)

6 Reserves and retained profits

(a) Reserves

(a) Reserves
Available-for-sale investment revaluation reserve Performance rights reserve Foreign currency translation reserve Movements: Available-for-sale investment revaluation reserve Balance 1 July Revaluation - gross Deferred tax Balance 30 June Performance rights reserve Balance 1 July Performance rights plan expense Transfer to share capital - exercise of rights Balance 30 June Foreign currency translation reserve Balance 1 July Currency translation differences arising during the year Balance 30 June (b) Retained profits Balance 1 July Profit for the year Dividends Balance 30 June	Consolidated 2013 $ 2012 $ (79,100) (77,700) 778,886 977,272 440,599 (604,666)
	1,140,385 294,906
	Consolidated 2013 $ 2012 $ (77,700) (61,600) (2,000) (23,000) 600 6,900
	(79,100) (77,700)
	977,272 418,604 23,014 558,668 (221,400) -
	778,886 977,272
	(604,666) (267,686) 1,045,265 (336,980)
	440,599 (604,666)
	Consolidated 2013 $ 2012 $ 40,689,644 30,916,243 21,931,946 22,143,034 (13,981,837) (12,369,633)
	48,639,753 40,689,644

12

Lycopodium Limited and Controlled Entities Appendix 4E - Preliminary Final Report Preliminary Selected Notes to the Financial Statements For the year ended 30 June 2013 (continued)

7 Non-controlling interests

Interest in: Share capital Reserves Retained profits

Consolidated	Consolidated
2013	2012
$	$
28	28
(73,120)	2,131
771,074	162,581
697,982	164,740

8 Dividends

(a) Ordinary shares

(a) Ordinary shares
	Parent	entity
	2013	2012
	$	$
Final dividend for the year ended 30 June 2012 of 21.0 cents (2011 - 20.0 cents)
per fully paid share paid on 15 October 2012 (2011 - 14 October 2011)
Fully franked based on tax paid @ 30% (2011: 30%)	8,138,572	7,731,021
Interim dividend for the year ended 30 June 2013 of 15.0 cents (2012 - 12.0 cents)
per fully paid share paid on 15 April 2013 (2012 - 16 April 2012)
Fully franked based on tax paid @ 30% (2012: 30%)	5,843,265	4,638,612
Total dividends provided for or paid	13,981,837	12,369,633

(b) Dividends not recognised at the end of the reporting period

In addition to the above dividends, since year end the Directors have recommended the payment of a final dividend of 21.0 cents per fully paid ordinary share (2012 - 21.0 cents), fully franked based on tax paid at 30%. The aggregate amount of the proposed dividend expected to be paid on 15 October 2013 out of retained earnings at 30 June 2013, but not recognised as a liability at year end, is	Parent entity 2013 $ 2012 $ 8,180,572 8,138,572

13

Lycopodium Limited and Controlled Entities Appendix 4E - Preliminary Final Report Preliminary Selected Notes to the Financial Statements For the year ended 30 June 2013 (continued)

9 Subsidiaries

(a) Significant investments in subsidiaries

The consolidated financial report incorporate the assets, liabilities and results of the following principal subsidiaries:

subsidiaries:
	Country of
Name of entity	incorporation	Class of shares	Equity holding
			2013 2012
			% %
Lycopodium Minerals Pty Ltd	Australia	Ordinary	100	100
Orway Mineral Consultants (WA) Pty Ltd	Australia	Ordinary	100	100
Lycopodium Process Industries Pty Ltd	Australia	Ordinary	100	100
Lycopodium (Ghana) Pty Ltd	Australia	Ordinary	100	100
Lycopodium (Ghana) Limited	Ghana	Ordinary	100	100
Lycopodium Tanzania Limited	Tanzania	Ordinary	100	100
Lycopodium (Philippines) Pty Ltd	Australia	Ordinary	100	100
Lycopodium Minerals QLD Pty Ltd	Australia	Ordinary	100	100
Lycopodium Infrastructure Pty Ltd	Australia	Ordinary	100	100
Lycopodium Asset Management Pty Ltd	Australia	Ordinary	100	100
SUPL Pty Ltd	Australia	Ordinary	100	100
Lycopodium Share Plan Pty Ltd	Australia	Ordinary	100	100
Lycopodium Mauritius	Mauritius	Ordinary	100	100
Lycopodium Mauritania SARL	Mauritania	Ordinary	100	100
Lycopodium Americas Pty Ltd	Australia	Ordinary	85	85
Lycopodium Minerals U.S.A Inc.	U.S.A	Ordinary	100	100
Lycopodium Minerals Canada Ltd	Canada	Ordinary	100	100
Orway Mineral Consultants Americas Pty Ltd	Australia	Ordinary	85	85
Orway Mineral Consultants Canada Ltd	Canada	Ordinary	100	100
Lycopodium PNG Ltd	PNG	Ordinary	100	100
Lycopodium Burkina Faso SARL	Burkina Faso	Ordinary	100	100
Lycopodium Rail Pty Ltd	Australia	Ordinary	75	75
Lycopodium Ghana Infrastructure Ltd	Ghana	Ordinary	100	100
Lycopodium Management Consulting Pty Ltd (i)	Australia	Ordinary	100	-

(i) Lycopodium Management Consulting Pty Ltd was incorporated on 15 November 2012.

10 Investment in joint ventures

(a) Movements in carrying amounts

Carrying amount at the beginning of the financial year Share of profits after income tax Share capital introduced Carrying amount at the end of the financial year	Consolidated 2013 $ 2012 $ 280,264 - 5,625,335 280,263 - 1
	5,905,599 280,264

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Lycopodium Limited and Controlled Entities Appendix 4E - Preliminary Final Report Preliminary Selected Notes to the Financial Statements For the year ended 30 June 2013 (continued)

10 Investment in joint ventures (continued)

(b) Summarised financial information of joint ventures

The group's share of the results of its joint ventures and its aggregated assets (including goodwill) and liabilities are as follows:

Ownership Interest % 2013 Joint ventures 50 2012 Joint ventures 50	Company's share of: Assets $ Liabilities $ Revenues $ Profit $ 14,932,757 9,027,156 31,896,501 5,625,335
	3,667,418 3,387,154 1,994,317 280,263

11 Events occurring after the reporting period

With the exception of the dividends as noted in note 8(b), no other matter or circumstances have arisen since the end of the financial year which significantly affected or may significantly affect:

(a) the consolidated entity's operations in future financial years, or

(b) the results of those operations in future financial years, or

(c) the consolidated entity's state of affairs in future financial years.

12 Reconciliation of profit after income tax to net cash inflow from operating activities

Profit for the year Depreciation and amortisation Non-cash employee benefits expense - share-based payments Net loss on sale of non-current assets Share of profits of joint venture partnership Interest relating to financing activities Change in operating assets and liabilities: Increase in trade debtors and other receivables Increase in deferred tax assets Increase in other operating assets Increase in trade creditors Decrease in provision for income taxes payable Increase in other provisions Net cash inflow from operating activities

Consolidated 2013 $ 2012 $ 22,540,439 22,355,099 2,192,104 1,784,442 23,014 558,668 235,536 1,503 (5,625,335) (280,263) 232,000 301,743 (663,759) (12,755,002) (3,489,979) (255,521) (1,001,518) (826,727) 10,499,063 10,077,582 (1,882,372) (4,065,794) 439,903 836,718

23,499,096 17,732,448

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Lycopodium Limited and Controlled Entities Appendix 4E - Preliminary Final Report Preliminary Selected Notes to the Financial Statements For the year ended 30 June 2013 (continued)

13 Earnings per share

(a) Basic earnings per share

(a) Basic earnings per share
Basic earnings per share attributable to the ordinary equity holders of the company (b) Diluted earnings per share Diluted earnings per share attributable to the ordinary equity holders of the company (c) Reconciliation of earnings used in calculating earnings per share Basic earnings per share Profit attributable to the ordinary equity holders of the company used in calculating basic earnings per share Diluted earnings per share Used in calculating diluted earnings per share (d) Weighted average number of shares used as denominator Weighted average number of ordinary shares used as the denominator in calculating basic earnings per share Adjustments for calculation of diluted earnings per share: Performance rights Weighted average number of ordinary and potential ordinary shares used as the denominator in calculating diluted earnings per share	Consolidated 2013 Cents 2012 Cents 56.5 57.3
	Consolidated 2013 Cents 2012 Cents 55.4 56.0
	Consolidated 2013 $ 2012 $ 21,931,946 22,143,034
	21,931,946 22,143,034
	Consolidated 2013 Number 2012 Number 38,796,747 38,655,103 801,329 906,370
	39,598,076 39,561,473

(b) Diluted earnings per share

(c) Reconciliation of earnings used in calculating earnings per share

(d) Weighted average number of shares used as denominator

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Lycopodium Limited and Controlled Entities Appendix 4E - Preliminary Final Report Supplementary Appendix 4E information As at 30 June 2013

Additional dividend/distribution information (Appendix 4E item 6)

Details of dividends/distributions declared or paid during or subsequent to the year ended 30 June 2013 are as follows:

follows:
Record date	Payment date	Type	Ammount per security	Total dividend	Franked amount per security
2 October 2012	15 October 2012	Final	21.0 cents	$8,138,572	21.0 cents
2 April 2013	15 April 2012	Interim	15.0 cents	$5,843,265	15.0 cents
2 October 2013	15 October 2013	Final	21.0 cents	$8,180,572	21.0 cents

Audit Alert ( Appendix 4E items 15 - 17 )

This report is based on accounts which are in the process of being audited.

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