LYCOPODIUM LIMITED — Interim / Quarterly Report 2017

Aug 24, 2017

Lycopodium Limited and Controlled Entities ABN 83 098 556 159

Appendix 4E - Preliminary Final Report for the year ended 30 June 2017

Lycopodium Limited and Controlled Entities ABN 83 098 556 159 Appendix 4E - Preliminary Final Report - 30 June 2017

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	21

Lycopodium Limited and Controlled Entities Appendix 4E - Preliminary Final Report For the year ended 30 June 2017

Results for announcement to the market

						$
Revenuefrom ordinary activities (Appendix 4E item 2.1)	Up		74.1%	to		216,616,442
Profitfrom ordinary activities after tax attributable to members (Appendix 4E item 2.2)	Up		225.3%	to		10,292,083
Net profitfor the period attributable to members (Appendix 4E item 2.3)	Up		225.3%	to		10,292,083
		$			$
Dividends / distributions (Appendix 4E item 2.4)		Amount per security			Franked amount per security
Final dividend (cents)		9.0			9.0
Key ratios		2017			2016
		June			June
Basic earningsper share(cents)		25.9			8.0
Net tangible assets per shares (cents)		155.5			142.0

Record date for determining entitlements to the final dividends

29 September 2017

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 2017

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 ventures accounted for using the equity method 10 Profit before income tax Income tax expense 5 Profit 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 for the year Profit for the year is attributable to: Owners of Lycopodium Limited Non-controlling interests Total comprehensive income 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 2017 $ 2016 $ 216,616,442 124,460,218 (61,898,213) (57,853,816) (1,171,764) (1,329,095) (9,843,966) (4,370,898) (74,207,912) (12,080,173) (38,255,322) (28,417,150) (8,052,368) (8,082,301) (263,242) (500,000) (9,540,001) (7,768,302) (1,634) (1,254) (93,651) (33,324) 1,019,251 1,191,724
	14,307,620 5,215,629 (3,934,091) (1,889,219)
	10,373,529 3,326,410 ) 111,932 (1,593,336)
	10,485,461 1,733,074
	10,292,083 3,163,478 81,446 162,932
	10,373,529 3,326,410
	10,404,015 1,570,142 81,446 162,932
	10,485,461 1,733,074
	Cents Cents 25.9 8.0 25.9 8.0

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 2017

Notes ASSETS Current assets Cash and cash equivalents Trade and other receivables Inventories Derivative financial assets 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 Provisions Total current liabilities Non-current liabilities Borrowings 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 2017 $ 2016 $ 85,334,769 41,547,757 36,919,288 26,525,309 327,430 703,686 164,994 - 1,344,040 1,008,816 2,149,687 1,793,028
	126,240,208 71,578,596
	2,227,735 1,768,751 102,963 102,953 3,174,174 2,343,796 7,421,173 7,907,733 442,616 521,898 3,797,930 2,782,541
	17,166,591 15,427,672
	143,406,799 87,006,268
	64,080,967 21,436,955 509,731 89,879 3,978,266 508,544 4,280,795 -
	72,849,759 22,035,378
	832,912 - 500,796 639,873
	1,333,708 639,873
	74,183,467 22,675,251
	69,223,332 64,331,017
	20,823,772 20,823,772 (988,042) (840,944) 46,412,369 41,285,494
	66,248,099 61,268,322 2,975,233 3,062,695
	69,223,332 64,331,017

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 2017

Consolidated entity Notes Balance at 1 July 2015 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 Balance at 1 July 2016 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 Performance rights - expired 7 Balance at 30 June 2017	Contributed equity $ Retained profits $ Foreign currency translation reserve $ Available for sale investment revaluation reserve $ Performance rights reserve $ Non-con- trolling interests $ Total equity $ 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
	20,823,772 41,285,494 (1,016,051) (83,930) 259,037 3,062,695 64,331,017 - 10,292,083 - - - 81,446 10,373,529 - - 111,932 7 - - 111,939 - 10,292,083 111,932 7 - 81,446 10,485,468 - - - - - (168,908) (168,908) - (5,165,208) - - - - (5,165,208) - - - - (259,037) - (259,037) - (5,165,208) - - (259,037) (168,908) (5,593,153) 20,823,772 46,412,369 (904,119) (83,923) - 2,975,233 69,223,332

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 2017

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 (paid)/received Net cash inflow from operating activities 12 Cash flows from investing activities Dividends received from joint ventures and associate 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 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 Loans advanced to associate 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 2017 $ 2016 $ 237,498,193 123,507,881 (187,908,401) (119,223,061)
	49,589,792 4,284,820 1,557,922 1,149,187 (1,814,985) 4,632,663
	49,332,729 10,066,670
	560,267 2,600,000 (335,812) (548,607) 6,311 21,038 (50,116) (9,962) - (70,104) - (387,500)
	180,650 1,604,865
	1,231,311 804,015 (1,229,832) (832,572) (5,165,208) (595,987) (227,765) (193,990) (336,000) (387,500) 79,282 181,393
	(5,648,212) (1,024,641)
	43,865,167 10,646,894 41,547,757 32,440,938 (78,155) (1,540,075)
	85,334,769 41,547,757

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 2017

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 2016 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 four (2016: 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.

The Process Industries segment consists of engineering and related services provided to the manufacturing and renewable energy facilities throughout Australia and South East Asia.

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 2017 (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 2017 and 30 June 2016 are as follows:

2017		Corporate Services		Minerals	Minerals	Minerals	Minerals		Project Services - Africa	Project Services - Africa		Industrial Process		Other		Total
				Asia Pacific	North America			Africa
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		$ 14,854,323 (14,741,676) 112,647 788,088 927,295 153 711,881 22,748,913 1,369,880 - 3,749,923		$ 137,132,984 (3,427,752) 133,705,232 9,080,813 91,956 593,629 (2,910,830) 66,636,322 857,855 1,482,555 49,142,644		$ 21,649,588 (7,614,681) 14,034,907 (746,232) - 76,075 80,616 4,725,219 - 16,935 2,461,174		$ 41,116,856 (114,273) 41,002,583 984,779 - 309,152 (650,065) 17,556,315 - 58,764 6,374,583		$ 16,834,804 (5,316,980) 11,517,824 2,784,941 - 3,831 (402,807) 14,545,417 - - 11,501,412		$ 4,179,161 (353,497) 3,825,664 (199,343) - 31,048 59,258 4,082,881 - 1,398 1,588,570		$ 21,989,969 (9,572,384) 12,417,585 1,877,816 - 157,876 (822,144) 10,070,508 - 205,939 3,386,944		$ 257,757,685 (41,141,243) 216,616,442 14,570,862 1,019,251 1,171,764 (3,934,091) 140,365,575 2,227,735 1,765,591 78,205,250

7

Lycopodium Limited and Controlled Entities Appendix 4E - Preliminary Final Report Preliminary Selected Notes to the Financial Statements For the year ended 30 June 2017

(continued)

2 Segment information (continued)

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

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

(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 $24,016,675 (2016: $20,800,010), and the total of revenue from external customers from other countries is $192,599,767 (2016: $103,660,208). Segment revenues are allocated based on the country in which the customer is located.

Revenues of approximately $91,090,536 (2016: $36,973,772) 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:

Segment profit before tax Goodwill impairment Amortisation of customer relationships Profit before income tax as per preliminary statement of profit or loss and other comprehensive income	Consolidated 2017 $ 2016 $ 14,570,862 5,760,629 (263,242) (500,000) - (45,000)
	14,307,620 5,215,629

8

Lycopodium Limited and Controlled Entities Appendix 4E - Preliminary Final Report Preliminary Selected Notes to the Financial Statements For the year ended 30 June 2017 (continued)

2 Segment information (continued)

(c) Other segment information (continued)

(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 Total assets as per the preliminary balance sheet	Consolidated 2017 $ 2016 $ 140,365,575 82,872,412 (4,180,052) (3,350,662) 7,221,276 7,484,518
	143,406,799 87,006,268

(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 3 Revenue From operations Sales revenue Contract revenue Other revenue Rents and sub-lease rentals Bank interest Other revenue Total revenue from operations	Consolidated 2017 $ 2016 $ 78,205,250 25,870,223 (4,021,783) (3,194,972)
	74,183,467 22,675,251
	Consolidated 2017 $ 2016 $ 214,817,550 122,992,053 59,803 84,070 1,639,559 1,209,245 99,530 174,850
	1,798,892 1,468,165
	216,616,442 124,460,218

3 Revenue

9

Lycopodium Limited and Controlled Entities Appendix 4E - Preliminary Final Report Preliminary Selected Notes to the Financial Statements For the year ended 30 June 2017

(continued)

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	2017 $ 2016 $ 649,407 655,534 60,331 121,698 160,172 77,907 18,826 17,056
	888,736 872,195
	283,028 411,900 - 45,000
	283,028 456,900
	1,171,764 1,329,095
	93,651 33,324
	1,634 1,254
	8,052,368 8,082,300

10

Lycopodium Limited and Controlled Entities Appendix 4E - Preliminary Final Report Preliminary Selected Notes to the Financial Statements For the year ended 30 June 2017

(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)/decrease in deferred tax assets Increase/(decrease) in deferred tax liabilities	Consolidated 2017 $ 2016 $ 4,879,361 1,062,835 (1,184,980) 2,494,234 239,710 (1,667,850)
	3,934,091 1,889,219
	(1,295,224) 2,835,279 279,835 (341,045)
	(1,015,389) 2,494,234

(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% (2016: 30%) Tax effect of amounts which are not deductible (taxable) in calculating taxable income: Goodwill impairment Sundry items Adjustments for current tax of prior periods - under/(over) 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	Consolidated 2017 $ 2016 $ 14,307,620 5,215,629 4,292,286 1,564,689 78,973 150,000 278,688 306,065
	4,649,947 2,020,754 239,710 275,180 (267,374) (116,586) (466,812) (154,238) 84,395 (78,374) (305,775) (57,517)
	3,934,091 1,889,219

11

Lycopodium Limited and Controlled Entities Appendix 4E - Preliminary Final Report Preliminary Selected Notes to the Financial Statements For the year ended 30 June 2017 (continued)

6 Non-current assets - Intangible assets

At 1 July 2015 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 Cost Accumulation amortisation and impairment Net book amount Year ended 30 June 2017 Opening net book amount Additions Amortisation charge Impairment loss recognised Transfers from property, plant and equipment Exchange differences Closing net book amount At 30 June 2017 Cost Accumulated amortisation Net book amount	Goodwill $ Software $ Customer contracts $ Total $ 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
	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 - 10,320,196 (819,842) (1,592,621) - (2,412,463)
	7,565,564 342,169 - 7,907,733
	Goodwill $ Software $ Customer contracts $ Total $ 7,565,564 342,169 - 7,907,733 - 50,116 - 50,116 - (283,028) - (283,028) (263,242) - - (263,242) - 9,650 - 9,650 - (56) - (56)
	7,302,322 118,851 - 7,421,173
	8,122,164 1,878,728 315,000 10,315,892 (819,842) (1,759,877) (315,000) (2,894,719)
	7,302,322 118,851 - 7,421,173

• Group amortisation of $283,028 (2016: $456,900) 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 2017 (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.

2017 Minerals Maintenance Metallurgical 2016 Minerals Process industries Maintenance Metallurgical	Australia $ Other countries $ Total $ 3,622,991 2,465,026 6,088,017 1,095,048 - 1,095,048 119,257 - 119,257
	4,837,296 2,465,026 7,302,322
	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

Process Industries

The forecast was adjusted in 2017 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 2017 of $263,242. The related goodwill impairment loss of $263,242 (2016: $500,000) 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
2017	2016
$	$
(83,923)	(83,930)
-	259,037
(904,119)	(1,016,051)
(988,042)	(840,944)

13

Lycopodium Limited and Controlled Entities Appendix 4E - Preliminary Final Report Preliminary Selected Notes to the Financial Statements For the year ended 30 June 2017

(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 Expiry of performance 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	2017 $ 2016 $ (83,930) (81,900) 10 (2,900) (3) 870
	(83,923) (83,930)
	259,037 259,037 (259,037) -
	- 259,037
	(1,016,051) 577,285 111,932 (1,593,336)
	(904,119) (1,016,051)
	Consolidated 2017 $ 2016 $ 41,285,494 38,718,003 10,292,083 3,163,478 (5,165,208) (595,987)
	46,412,369 41,285,494

8 Non-controlling interests

Interest in: Share capital Reserves Retained profits	Consolidated 2017 $ 2016 $ 14,937 14,937 4,230 23,986 2,956,066 3,023,772
	2,975,233 3,062,695

14

Lycopodium Limited and Controlled Entities Appendix 4E - Preliminary Final Report Preliminary Selected Notes to the Financial Statements For the year ended 30 June 2017

(continued)

9 Dividends

(a) Ordinary shares

(a) Ordinary shares
Interim dividend for the year ended 30 June 2017 of 9 cents (2016 - 1.5 cents) per fully paid share paid on 13 April 2017 (2016 - 13 April 2016) Fully franked based on tax paid @ 30% (2016: 30%) Total dividends provided for or paid	Parent entity 2017 $ 2016 $ 3,575,914 595,987
	3,575,914 595,987

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

(b) Dividends not recognised at the end of the reporting period
	Parent	entity
	2017	2016
	$	$
In addition to the above dividends, since year end the Directors have
recommended the payment of a final dividend of 9.0 cents per fully paid ordinary
share (2016 - 4 cents), fully franked based on tax paid at 30%. The aggregate
amount of the proposed dividend expected to be paid on 13 October 2017 out of
retained earnings at 30 June 2017, but not recognised as a liability at year end, is	3,575,914	1,589,295

15

Lycopodium Limited and Controlled Entities Appendix 4E - Preliminary Final Report Preliminary Selected Notes to the Financial Statements For the year ended 30 June 2017 (continued)

10 Investments accounted for using the equity method

Investment in joint venture Investment in associate	Consolidated 2017 $ 2016 $ 857,856 1,015,900 1,369,879 752,851
	2,227,735 1,768,751

(a) Investment in joint venture

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

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
	2017	2016
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 2017

(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	2017 2016 $ $ 2,661,470 3,851,858 - -
	2,661,470 3,851,858
	945,763 1,052,756 - 767,306
	945,763 1,820,063
	2,653,672 2,210,810 - - - - 2017 2016 $ $ 1,605,130 9,372,882 183,912 1,652,743 - -
	183,912 1,652,743
	- - 30,973 106,980 - - 66,784 689,519

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

	2017	2016
	$	$
Total net assets of PEPL	1,715,708	2,031,796
Proportion of ownership interest held by the Group	50%	50%
Carrying amount of the investment in PEPL	857,855	1,015,900

Dividends received during the year from PEPL amounted to $250,000 (2016: $2,600,000).

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 2017

(continued)

10 Investments accounted for using the equity method (continued)

(a) Investment in joint venture (continued)

During the period, Lycopodium (40%) and Monadelphous Group Ltd (60%) formed an incorporated joint venture, Mondium Pty Ltd ("Mondium").

Mondium's purpose it to target and deliver engineering, procurement and construction (EPC) projects in the minerals processing sector, domestically and within selected international markets.

Mondium is a private company, with no quoted market prices available for its shares. The investment is currently carried at a nil value at year end.

(b) Investment in associate

The Group has one material investment in associate, ECG Engineering Pty Ltd, an 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	2017 2016 $ $ 927,295 365,352 - -
	927,295 365,352
	. 1,369,880 752,851

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.

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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 2017 (continued)

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

Profit for the year Depreciation and amortisation Impairment of goodwill Loans advanced to associate (included at cash flows from financing activities) 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 Finance lease expense Change in operating assets and liabilities: Increase in trade debtors and other receivables Decrease/(increase) in inventories (Increase)/decrease in deferred tax assets Increase in other operating assets Increase in trade creditors Increase in provision for income taxes payable Increase in other provisions Increase in derivative financial assets Net cash inflow from operating activities

Consolidated 2017 $ 2016 $ 10,373,528 3,326,410 1,171,764 1,329,095 263,242 500,000 336,000 387,500 (259,037) - - (9,413) 1,634 1,254 (1,019,251) (1,191,724) 56,377 33,324 43,011 - (10,393,981) (1,952,129) 376,256 (448,475) (866,965) 2,550,116 (356,658) (84,808) 42,644,013 1,582,515 2,986,072 3,971,765 4,141,718 71,240 (164,994) -

49,332,729 10,066,670

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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 2017 (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	Consolidated 2017 Cents 2016 Cents 25.9 8.0
	Consolidated 2017 Cents 2016 Cents 25.9 8.0
	Consolidated 2017 $ 2016 $ 10,291,620 3,163,478
	10,291,620 3,163,478
	Consolidated 2017 Number 2016 Number 39,732,373 39,732,373

(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 2017

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

Details of dividends/distributions declared or paid during or subsequent to the year ended 30 June 2017 are as follows:

follows:
Record date	Payment date	Type	Ammount per security	Total dividend	Franked amount per security
31 March 2017	13 April 2017	Interim	9.0 cents	3,575,914	9.0 cents
29 September 2017	13 October 2017	Final	9.0 cents	3,575,914	9.0 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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