LYCOPODIUM LIMITED — Interim / Quarterly Report 2016

Aug 25, 2016

Lycopodium Limited and Controlled Entities ABN 83 098 556 159

Appendix 4E - Preliminary Final Report for the year ended 30 June 2016

Lycopodium Limited and Controlled Entities ABN 83 098 556 159 Appendix 4E - Preliminary Final Report - 30 June 2016

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

Contents

Contents
	Page
Results for Announcement to the Market	1
Preliminary Statement of Profit or Loss and Other 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	20

Lycopodium Limited and Controlled Entities Appendix 4E - Preliminary Final Report For the year ended 30 June 2016

Results for announcement to the market

						$
Revenuefrom ordinary activities (Appendix 4E item 2.1)	Up		1.3%	to		124,460,218
Profitfrom ordinary activities after tax attributable to members (Appendix 4E item 2.2)	Up		444.6%	to		3,163,478
Net profitfor the period attributable to members (Appendix 4E item 2.3)	Up		444.6%	to		3,163,478
		$			$
Dividends / distributions (Appendix 4E item 2.4)		Amount per security			Franked amount per security
Final dividend (cents)		4.0			4.0
Key ratios		2016			2015
		June			June
Basic earningsper share(cents)		8.0			(2.3)
Net tangible assets per shares (cents)		142.0			136.9

Record date for determining entitlements to the final dividends

30 September 2016

1

Lycopodium Limited and Controlled Entities Appendix 4E - Preliminary Final Report Preliminary Statement of Profit or Loss and Other Comprehensive Income For the year ended 30 June 2016

Notes Revenue from operations 3 Employee benefits expense Depreciation and amortisation expense 4 Project expenses Equipment and materials Contractors Occupancy expense Impairment of goodwill 6 Other expenses Loss on disposal of asset Finance costs Share of net profit of associate and joint venture accounted for using the equity method 10 Profit/(Loss) before income tax Income tax (expense)/benefit 5 Profit/(Loss) for the year Other comprehensive (expense)/income Items that may be reclassified to profit or loss Exchange differences on translation of foreign operations 7(a Total comprehensive income/(expense) for the year Profit/(Loss) for the year is attributable to: Owners of Lycopodium Limited Non-controlling interests Total comprehensive income/(expense) for the year is attributable to: Owners of Lycopodium Limited Non-controlling interests Earnings per share for profit attributable to the ordinary equity holders of the company: Basic earnings per share 13(a) Diluted earnings per share 13(b)	Consolidated 2016 $ 2015 $ 124,460,218 122,811,322 (57,853,816) (65,367,325) (1,329,095) (1,753,905) (4,370,898) (4,630,594) (12,080,173) (16,875,139) (28,417,150) (22,665,053) (8,082,301) (8,060,711) (500,000) - (7,768,302) (7,537,899) (1,254) (323,251) (33,324) (57,836) 1,191,724 2,840,323
	5,215,629 (1,620,068) (1,889,219) 604,655
	3,326,410 (1,015,413) ) (1,593,336) 605,183
	1,733,074 (410,230)
	3,163,478 (918,077) 162,932 (97,336)
	3,326,410 (1,015,413)
	1,570,142 (312,894) 162,932 (97,336)
	1,733,074 (410,230)
	Cents Cents 8.0 (2.3) 8.0 (2.3)

The above preliminary statement of profit or loss and other 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 2016

Notes ASSETS Current assets Cash and cash equivalents Trade and other receivables Inventories Current tax 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 6 Other receivables Deferred tax assets Total non-current assets Total assets LIABILITIES Current liabilities Trade and other payables Borrowings Current tax liabilities Total current liabilities Non-current liabilities Provisions Total non-current liabilities Total liabilities Net assets EQUITY Contributed equity Reserves 7(a) Retained profits 7(b) Parent entity interest Non-controlling interests 8 Total equity	Consolidated 2016 $ 2015 $ 41,547,757 32,440,938 26,525,309 24,573,180 703,686 255,211 1,008,816 4,561,762 1,793,028 1,708,221
	71,578,596 63,539,312
	1,768,751 2,789,527 102,953 35,750 2,343,796 2,776,265 7,907,733 8,858,308 521,898 703,291 2,782,541 5,331,787
	15,427,672 20,494,928
	87,006,268 84,034,240
	21,436,955 19,854,442 89,879 288,513 508,544 89,725
	22,035,378 20,232,680
	639,873 568,634
	639,873 568,634
	22,675,251 20,801,314
	64,331,017 63,232,926
	20,823,772 20,823,772 (840,944) 754,422 41,285,494 38,718,003
	61,268,322 60,296,197 3,062,695 2,936,729
	64,331,017 63,232,926

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 2016

Consolidated entity Notes Balance at 1 July 2014 (Loss)/Profit for the year Other comprehensive income / (expense) Total comprehensive income for the year Transactions with owners in their capacity as owners: Contributions of equity, net of transaction costs and tax Non-controlling interests on acquisition of subsidiary Foreign currency translation with non-controlling interest Dividends provided for or paid 9 Performance rights - value of rights 7 Performance rights - transfer on exercise 7 Newly consolidated operations Balance at 30 June 2015 Balance at 1 July 2015 (Loss)/Profit for the year Other comprehensive income / (expense) Total comprehensive income for the year Transactions with owners in their capacity as owners: Foreign currency translation with non-controlling interest Dividends provided for or paid 9 Balance at 30 June 2016	Contributed equity $ Retained profits $ Foreign currency translation reserve $ Available for sale investment revaluation reserve $ Performance rights reserve $ Non-con- trolling interests $ Total equity $ 18,999,317 42,390,395 (27,898) (81,900) 1,021,535 577,904 62,879,353 - (918,077) - - - (97,336) (1,015,413) - - 605,183 - - - 605,183
	- (918,077) 605,183 - - (97,336) (410,230)
	824,455 - - - - - 824,455 1,000,000 (1,572,096) - - - (577,904) (1,150,000) - - - - - 25,715 25,715 - (1,182,219) - - - - (1,182,219) - - - - 61,957 - 61,957 - - - - (824,455) - (824,455) - - - - - 3,008,350 3,008,350
	1,824,455 (2,754,315) - - (762,498) 2,456,161 763,803
	20,823,772 38,718,003 577,285 (81,900) 259,037 2,936,729 63,232,926
	20,823,772 38,718,003 577,285 (81,900) 259,037 2,936,729 63,232,926 - 3,163,478 - - - 162,932 3,326,410 - - (1,593,336) (2,030) - - (1,595,366) - 3,163,478 (1,593,336) (2,030) - 162,932 1,731,044 - - - - - (36,966) (36,966) - (595,987) - - - - (595,987) - (595,987) - - - (36,966) (632,953) 20,823,772 41,285,494 (1,016,051) (83,930) 259,037 3,062,695 64,331,017

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 2016

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 Income taxes received/(paid) Net cash inflow from operating activities 12 Cash flows from investing activities Dividends received from joint venture Payments for purchase of business, net of cash received Payments for acquisition of non-controlling interests Payments for property, plant and equipment Proceeds from sale of property, plant and equipment Payments for intangible assets Payments for available-for-sale financial assets Payments for investment in associate 10(b) Net cash inflow/(outflow) from investing activities Cash flows from financing activities Proceeds from borrowings Repayments of borrowings Dividends paid to company's shareholders 9 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/(decrease) 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 2016 $ 2015 $ 123,120,381 127,101,357 (119,223,061) (125,121,138)
	3,897,320 1,980,219 1,149,187 939,293 4,632,663 (1,445,116)
	9,679,170 1,474,396
	2,600,000 4,400,000 - (4,141,003) - (1,150,000) (548,607) (221,335) 21,038 55,212 (9,962) (38,236) (70,104) (32,750) (387,500) -
	1,604,865 (1,128,112)
	804,015 895,027 (832,573) (817,128) (595,986) (1,182,219) (193,990) (751,727) 181,393 169,362
	(637,141) (1,686,685)
	10,646,894 (1,340,401) 32,440,938 33,302,348 (1,540,075) 478,991
	41,547,757 32,440,938

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 2016

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 2015 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 two (2015: two) 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.

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 2016 (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 2016 and 30 June 2015 are as follows:

2016		Corporate Services		Minerals		Other		Total
Total segment revenue Inter-segment revenue Revenue from external customers Profit / (Loss) before tax Interest in the profit of equity accounted joint ventures Depreciation and amortisation Income tax benefit / (expense) Total segment assets Total assets includes: Investment in joint ventures Additions to non-current assets (other than financial assets and deferred tax) Total segment liabilities		$ 6,061,290 (5,365,437) 695,853 (501,787) - (153) 200,936 16,922,240 752,852 - 5,032,115		$ 105,360,748 (6,886,352) 98,474,396 4,794,321 1,191,724 (987,684) (1,289,504) 49,304,279 1,015,900 405,021 14,200,393		$ 33,180,491 (7,890,522) 25,289,969 1,468,095 - (341,258) (800,651) 16,645,893 - 153,548 6,637,715		$ 144,602,529 (20,142,311) 124,460,218 5,760,629 1,191,724 (1,329,095) (1,889,219) 82,872,412 1,768,752 558,569 25,870,223

7

Lycopodium Limited and Controlled Entities Appendix 4E - Preliminary Final Report Preliminary Selected Notes to the Financial Statements For the year ended 30 June 2016

(continued)

2 Segment information (continued)

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

2015		Corporate Services		Minerals		Other		Total
Total segment revenue Inter-segment revenue Revenue from external customers Profit / (Loss) before tax Interest in the profit of equity accounted joint ventures Depreciation and amortisation Income tax expense Total segment assets Total assets includes: Investment in joint ventures Additions to non-current assets (other than financial assets and deferred tax) Total segment liabilities		$ 13,159,204 (12,251,193) 908,011 (346,920) - (96,331) 614,615 12,792,739 - - 2,655,777		$ 105,917,216 (4,048,200) 101,869,016 (5,844,746) 2,840,323 (1,171,040) (340,978) 48,187,752 2,789,527 193,649 12,595,290		$ 27,182,790 (7,148,495) 20,034,295 4,616,598 - (486,535) 331,018 14,533,319 - 65,922 4,890,135		$ 146,259,210 (23,447,888) 122,811,322 (1,575,068) 2,840,323 (1,753,906) 604,655 75,513,810 2,789,527 259,571 20,141,202

(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 profit or loss and other comprehensive income.

The entity is domiciled in Australia. The result of its revenue from external customers in Australia is $20,800,010 (2015: $57,126,431), and the total of revenue from external customers from other countries is $103,660,208 (2015: $65,684,891). Segment revenues are allocated based on the country in which the customer is located.

Revenues of approximately $36,973,772 (2015: $42,454,871) are derived from the top 3 customers. These revenues are attributable to the Minerals segment.

(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 profit or loss and other comprehensive income is provided as follows:

8

Lycopodium Limited and Controlled Entities Appendix 4E - Preliminary Final Report Preliminary Selected Notes to the Financial Statements For the year ended 30 June 2016

(continued)

2 Segment information (continued)

(c) Other segment information (continued)

(ii) Segment profit before tax (continued)

Segment (loss)/profit before tax Goodwill impairment Amortisation of customer relationships Profit/(Loss) before income tax as per preliminary statement of profit or loss and other comprehensive income	Consolidated 2016 $ 2015 $ 5,760,629 (1,575,068) (500,000) - (45,000) (45,000)
	5,215,629 (1,620,068)

(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 2016 $ 2015 $ 82,872,412 75,513,810 (3,350,662) 504,412 7,484,518 8,029,518 - (13,500)
	87,006,268 84,034,240

(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 2016 $ 2015 $ 25,870,223 20,141,202 (3,194,972) 660,112
	22,675,251 20,801,314

9

Lycopodium Limited and Controlled Entities Appendix 4E - Preliminary Final Report Preliminary Selected Notes to the Financial Statements For the year ended 30 June 2016

(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 Fixtures and fittings Leasehold improvements Leased plant and equipment Motor vehicles Total depreciation Amortisation Computer software Customer contracts 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 2016 $ 2015 $ 122,992,053 121,138,662 84,070 102,770 1,209,245 927,383 174,850 642,507
	1,468,165 1,672,660
	124,460,218 122,811,322
	2016 $ 2015 $ 655,534 739,147 121,698 174,740 77,907 295,296 17,056 25,587
	872,195 1,234,770
	411,900 474,135 45,000 45,000
	456,900 519,135
	1,329,095 1,753,905
	33,324 57,836
	1,254 323,251
	8,082,300 7,541,941

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 2016

(continued)

5 Income tax expense/(benefit)

(a) Income tax expense/(benefit)

(a) Income tax expense/(benefit)
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 in deferred tax liabilities	Consolidated 2016 $ 2015 $ 1,517,773 175,493 (33,136) (197,069) 404,581 (583,079)
	1,889,218 (604,655)
	307,909 (600,912) (341,045) 403,844
	(33,136) (197,068)

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

Profit/(Loss) before income tax expense Tax at the Australian tax rate of 30% (2015: 30%) Tax effect of amounts which are not deductible (taxable) in calculating taxable income: Goodwill impairment Share-based payment Sundry items Adjustments for current tax of prior periods - under provision of prior year income tax Difference in overseas tax rates Previously unrecognised tax losses now recouped to reduce current tax expense Deferred taxes not recognised Share of net profit of joint ventures accounted for using the equity method Income tax expense/(benefit)	Consolidated 2016 $ 2015 $ 5,215,629 (1,620,068) 1,564,689 (486,020) 150,000 - 18,615 18,587 287,450 129,215
	2,020,754 (338,218) 404,581 (583,079) (116,586) 73,102 (154,238) (91,489) (207,776) 1,187,126 (57,517) (852,097)
	1,889,218 (604,655)

11

Lycopodium Limited and Controlled Entities Appendix 4E - Preliminary Final Report Preliminary Selected Notes to the Financial Statements For the year ended 30 June 2016 (continued)

6 Non-current assets - Intangible assets

At 1 July 2014 Cost Accumulation amortisation and impairment Net book amount Year ended 30 June 2015 Opening net book amount Additions Amortisation charge Transfers from property, plant and equipment Exchange differences Closing net book amount Cost Accumulation amortisation and impairment Net book amount Year ended 30 June 2016 Opening net book amount Additions Amortisation charge Impairment loss recognised Exchange differences Closing net book amount At 30 June 2016 Cost Accumulated amortisation Net book amount	Goodwill $ Software $ Customer contracts $ Total $ 6,420,380 4,543,272 315,000 11,278,652 (819,842) (3,372,509) (225,000) (4,417,351)
	5,600,538 1,170,763 90,000 6,861,301
	5,600,538 1,170,763 90,000 6,861,301 2,465,026 38,236 - 2,503,262 - (474,135) (45,000) (519,135) - 4,846 - 4,846 - 8,034 - 8,034
	8,065,564 747,744 45,000 8,858,308
	8,885,406 2,043,090 315,000 11,243,496 (819,842) (1,295,346) (270,000) (2,385,188)
	8,065,564 747,744 45,000 8,858,308
	Goodwill $ Software $ Customer contracts $ Total $ 8,065,564 747,744 45,000 8,858,308 - 9,962 - 9,962 - (411,900) (45,000) (456,900) (500,000) - - (500,000) - (3,637) - (3,637)
	7,565,564 342,169 - 7,907,733
	8,385,406 1,934,790 315,000 10,635,196 (819,842) (1,592,621) (315,000) (2,727,463)
	7,565,564 342,169 - 7,907,733

• Group amortisation of $456,900 (2015: $519,135) is included in depreciation and amortisation expense in the statement of comprehensive income.

12

Lycopodium Limited and Controlled Entities Appendix 4E - Preliminary Final Report Preliminary Selected Notes to the Financial Statements For the year ended 30 June 2016 (continued)

6 Non-current assets - Intangible assets (continued)

(a) Impairment tests for goodwill

Goodwill is allocated to the group cash-generating units (CGUs) identified according to business segment and country of operation.

A segment-level summary of the goodwill allocation is presented below.

2016 Minerals Process industries Maintenance Metallurgical 2015 Minerals Process industries Maintenance Metallurgical	Australia $ Other countries $ Total $ 3,622,991 2,465,026 6,088,017 263,242 - 263,242 1,095,048 - 1,095,048 119,257 - 119,257
	5,100,538 2,465,026 7,565,564
	Australia $ Other countries $ Total $ 3,622,991 2,465,026 6,088,017 763,242 - 763,242 1,095,048 - 1,095,048 119,257 - 119,257
	5,600,538 2,465,026 8,065,564

Process Industries

The forecast was adjusted in 2016 for the decline in services in the Process Industries segment due to the decline in Australia's manufacturing industry. As a result, the Board expects lower growth and declining profit margins for this segment.

Impairment testing, taking into account these latest developments, resulted in a reduction in goodwill in 2016 of $500,000. The related goodwill impairment loss of $500,000 (2015: nil) was included within impairment of non-financial assets.

7 Reserves and retained profits

(a) Reserves

Available-for-sale investment revaluation reserve Performance rights reserve Foreign currency translation reserve

Consolidated	Consolidated
2016	2015
$	$
(83,930)	(81,900)
259,037	259,037
(1,016,051)	577,285
(840,944)	754,422

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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 2016

(continued)

7 Reserves and retained profits (continued)

(a) Reserves (continued)

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	2016 $ 2015 $ (81,900) (81,900) (2,900) - 870 -
	(83,930) (81,900)
	259,037 1,021,535 - 61,957 - (824,455)
	259,037 259,037
	577,285 (27,898) (1,593,336) 605,183
	(1,016,051) 577,285

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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 2016

(continued)

7 Reserves and retained profits (continued)

(b) Retained profits

Balance 1 July Profit/(Loss) for the year Dividends Acquisition of non-controlling interests (i) Transfer from non-controlling interests Balance 30 June	Consolidated 2016 $ 2015 $ 38,718,003 42,390,395 3,163,478 (918,077) (595,987) (1,182,219) - (2,150,000) - 577,904
	41,285,494 38,718,003

(i) During the prior year, Lycopodium Limited purchased the remaining non-controlling interest of Lycopodium Americas Pty Ltd, Lycopodium Rail Pty Ltd and Orway Minerals Consultants Americas Pty Ltd.

8 Non-controlling interests

Interest in: Share capital Reserves Retained profits Transfer to retained earnings	Consolidated 2016 $ 2015 $ 14,937 14,937 23,986 2,100 3,023,772 3,497,596 - (577,904)
	3,062,695 2,936,729

9 Dividends

(a) Ordinary shares

(a) Ordinary shares
	Parent	entity
	2016	2015
	$	$
No payments of final dividend for the year ended 30 June 2015 (2014 - 1.5 cents)
Fully franked based on tax paid @ 30% (2015: 30%)	-	586,233
Interim dividend for the year ended 30 June 2016 of 1.5 cents (2015 - 1.5 cents)
per fully paid share paid on 13 April 2016 (2015 - 17 April 2015)
Fully franked based on tax paid @ 30% (2015: 30%)	595,986	595,986
Total dividends provided for or paid	595,986	1,182,219

15

Lycopodium Limited and Controlled Entities Appendix 4E - Preliminary Final Report Preliminary Selected Notes to the Financial Statements For the year ended 30 June 2016 (continued)

9 Dividends (continued)

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

Parent entity 2016 2015 $ $ In addition to the above dividends, since year end the Directors have recommended the payment of a final dividend of 4.0 cents per fully paid ordinary share (2015 - 0 cents), fully franked based on tax paid at 30%. The aggregate amount of the proposed dividend expected to be paid on 14 October 2016 out of retained earnings at 30 June 2016, but not recognised as a liability at year end, is 1,589,295 -

10 Investments accounted for using the equity method

Investment in joint venture Investment in associate	Consolidated 2016 $ 2015 $ 1,015,900 2,789,527 752,851 -
	1,768,751 2,789,527

(a) Investment in joint venture

The Group has one material joint venture, Pilbara EPCM Pty Ltd ("PEPL").

Name of Joint Venture Country of Incorporation & Principal Place of Business Principal Activities	Proportion of Ownership Interest Held by the Group	Proportion of Ownership Interest Held by the Group
	2016	2015
Pilbara EPCM Pty Ltd Australia Engineering, procurement, construction management services	50%	50%

The investment in PEPL is accounted for using the equity method in accordance with AASB 128.

16

Lycopodium Limited and Controlled Entities Appendix 4E - Preliminary Final Report Preliminary Selected Notes to the Financial Statements For the year ended 30 June 2016

(continued)

10 Investments accounted for using the equity method (continued)

(a) Investment in joint venture (continued)

Summarised financial information for PEPL is set out below:

Current assets (a) Non-current assets Total assets Current liabilities (b) Non-current liabilities (c) Total liabilities a. Includes cash and cash equivalents b. Includes current financial liabilities (excluding trade and other payables and provisions) c. Includes non-current financial liabilities (excluding trade and other payables and provisions) Revenue Profit for the year Other comprehensive income for the year Total comprehensive income for the year Depreciation and amortisation Interest income Interest expense Tax expense	2016 2015 $ $ 3,851,858 10,382,283 - -
	3,851,858 10,382,283
	1,052,756 2,061,118 767,306 2,742,114
	1,820,063 4,803,232
	2,210,810 6,263,407 - - - - 2016 2015 $ $ 9,372,882 36,198,303 1,652,743 5,680,646 - -
	1,652,743 5,680,646
	- - 106,980 199,199 - - 689,519 1,766,556

A reconciliation of the above summarised financial information to the carrying amount of the investment in PEPL is set out below:

	2016	2015
	$	$
Total net assets of PEPL	2,031,796	5,579,052
Proportion of ownership interest held by the Group	50%	50%
Carrying amount of the investment in PEPL	1,015,900	2,789,526

Dividends received during the year from PEPL amounted to $2,600,000 (2015: $4,400,000).

PEPL is a Private Company; therefore no quoted market prices are available for its shares.

17

Lycopodium Limited and Controlled Entities Appendix 4E - Preliminary Final Report Preliminary Selected Notes to the Financial Statements For the year ended 30 June 2016

(continued)

10 Investments accounted for using the equity method (continued)

(b) Investment in associate

During the year, the Group acquired a 31% equity interest in ECG Engineering Pty Ltd, a start up electrical engineering consultancy based in Perth, Australia.

Summarised financial information of the Group's share in this associate:

Profit from continuing operations Other comprehensive income Total comprehensive income Carrying amount of the Group's interest in associate	2016 2015 $ $ 365,352 - - -
	365,352 -
	. 752,851 -

11 Events occurring after the reporting period

With the exception of the dividends as noted in note 9(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/(loss) after income tax to net cash inflow from operating activities

Profit/(Loss) for the year Depreciation and amortisation Impairment of goodwill Non-cash employee benefits expense - share-based payments Dividend and interest income Net loss on sale of non-current assets Share of net profit of associate and joint venture accounted for using the equity method Interest relating to financing activities Change in operating assets and liabilities: (Increase)/decrease in trade debtors and other receivables Increase in inventories Decrease/(increase) in deferred tax assets (Increase)/decrease in other operating assets Increase in trade creditors Increase/(decrease) in provision for income taxes payable Increase/(decrease) in other provisions Net cash inflow from operating activities

Consolidated 2016 $ 2015 $ 3,326,410 (1,015,413) 1,329,095 1,753,905 500,000 - - 61,958 (9,413) (946) 1,254 323,251 (1,191,724) (2,840,323) 33,324 57,836 (1,952,129) 1,637,241 (448,475) (255,211) 2,550,116 (638,425) (84,808) 282,071 1,582,515 3,940,087 3,971,765 (1,411,346) 71,240 (420,289)

9,679,170 1,474,396

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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 2016

(continued)

13 Earnings per share

(a) Basic earnings per share

(a) Basic earnings per share
	Consolidated
	2016	2015
	Cents	Cents
Basic earnings per share attributable to the ordinary equity holders of the
company	8.0	(2.3)
(b) Diluted earnings per share
	Consolidated
	2016	2015
	Cents	Cents
Diluted earnings per share attributable to the ordinary equity holders of the
company	8.0	(2.3)
(c) Reconciliation of earnings used in calculating earnings per share
	Consolidated
	2016	2015
	$	$
Basic earnings per share
Profit/(Loss) attributable to the ordinary equity holders of the company used in
calculating basic earnings per share	3,163,478	(918,077)
Diluted earnings per share
Used in calculating diluted earnings per share	3,163,478	(918,077)
(d) Weighted average number of shares used as denominator
	Consolidated
	2016	2015
	Number	Number
Weighted average number of ordinary shares used as the denominator in
calculating basic earnings per share	39,732,373	39,537,055
Adjustments for calculation of diluted earnings per share:
Performance rights	-	303,126
Weighted average number of ordinary and potential ordinary shares used as the
denominator in calculating diluted earnings per share	39,732,373	39,840,181

(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 2016

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

Details of dividends/distributions declared or paid during or subsequent to the year ended 30 June 2016 are as follows:

follows:
Record date	Payment date	Type	Ammount per security	Total dividend	Franked amount per security
1 April 2016	15April 2016	Interim	1.5 cents	595,986	1.5 cents
30 September 2016	14 October 2016	Final	4.0 cents	1,589,295	4.0 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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