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MCS SERVICES LIMITED Interim / Quarterly Report 2015

Jul 28, 2015

65377_rns_2015-07-28_5da11892-4100-49fb-9cb2-a31096bfccea.pdf

Interim / Quarterly Report

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ActivitiesR eport& CashFlow S tatement Forthe3 monthsending30 June2015

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Q uarterlyActivitiesandCashFlow S tatement

Forthe3 monthsending30 June2015 ( P eriod )

R edGum R esourcesL imited( R edGum )( Company )(AS X : R GX )ispleasedtopresentitactivitiesstatementand cashflow fortheP eriod.

CO R P O R AT EU P DAT E

O n the 28[th] ofM ay 2015 R ed Gum announced changesto the Board composition ofthe Company w ith the appointmentsofM rJoshP uckridgeandM rT om P ickettinfavourofthetw oannouncedoutgoingDirectors.

M rP uckridgeand M rP ickettbothhaveconsiderablecorporatefinanceexperienceand arebothexperienced directorsofcompanieslistedontheAustralianS ecuritiesExchange( AS X )andbringnew netw orksofacquisition opportunitiesfortheCompany.

T he new directorshave begun review ing the Company’scorporate arrangementsand strategicobjectivesto facilitatethegrow thofR edGum forthebestinterestsofshareholders.

CHILEAN O P ER AT IO N

T henew directorshavebegunastrategicreview oftheCompany’sChileaninterestsandw illmeetallminimum commitmentsontheprojectuntiladecisionhasbeenmadeastothestrategicdirectionoftheCompany.

T he new directorsbelievethisminimalexpenditure commitmentto the Chilean operation isconsistentw ith directionoftheCompanyputtothemarketbythepreviousboardandmanagement.

S AL EO FP ER U VIAN S U BS IDIAR Y

DuringtheP eriodtheCompanysuccessfullydisposedofitsP eruviansubsidiaryforthesalepriceofU S D$50,000. T heCompany hasdeemedthesaleimmaterialand believesthesalevaluereceived by R ed Gum issignificant giventhedepressedstateofearlystagenaturalresourcesexplorationmarketsandinvestorinterest.

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CAS H AT T HEEN D O FT HEP ER IO D

Cashat30 June2015amountedto$1,216,564.

AttachedistheAppendix5B ConsolidatedS tatementofCashFlow sfortheperiodfrom 1 April2015to30 June 2015.

N EW ACQ U IS IT IO N O P P O R T U N IT IES

T heCompany spenttimeincubatingpotentialnew opportunitiesfortheCompany thatitbelievesw illdeliver positiveshareholdervaluecurrentshareholdersoftheCompany.

For,andonbehalfof,theBoardofDirectorsoftheCompany,

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JoshP uckridge

N on-ExecutiveDirector

R edGum R esourcesLimited

Contact: +61 (0)452 440 100

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AS X L istingR ule5.3.3 tenementdetails

Tenement reference and location Nature of
interest
Interest at
beginning
of quarter
Interest
at end of
quarter
Cerro Huancash
Peru
See below a) 100% -
Chongos A
Peru
See below a) 100% 100%
Chongos B
Peru
See below a) 100% 100%
Chongos C
Peru
See below a) 100% 100%
La Negra
Chile
See below b) 100% 100%
Majada
Chile
See below c) See c) See c)

Nature of Interest - Notes

  • a) The Company through its wholly owned subsidiary, Red Gum Resources (Peru) Pty Ltd holds 100% beneficial interest in the shares in Central Peru Resources (“CPR”), which in turn holds 100% of the three remaining Peruvian Projects. During the period CPR sold Cerro Huancash interest for $64,739 (USD $50,000).

  • b) In 2012 Red Gum exercised its option to acquire the 100% interest in the La Negra Project which was registered on a 100% basis on 19 July 2012.

  • c) In March 2014 the Company notified each of the individual nine concession holders that it intended to give notice of its intention to withdraw from the Option Agreements entered into in March 2013. That agreement provided that by making staged, six monthly, optional payments totalling 679.5 million Chilean pesos (A$ 1.44 million at the then exchange rate) to the owners over a 3 year period from the date of signature, the Company could earn a 100% interest. After withdrawing from those agreements the Company no longer has any financial obligations concerning the Project and in view of the announced anticipate change in fundamental business activities no longer seeks to pursue this project.

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Appendix5B M iningexplorationentityandoilandgasexplorationentityquarterlyreport

R ule5.5

Appendix5B

M iningexplorationentityandoilandgasexplorationentity quarterlyreport

Introduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10, 01/05/2013

Name of entity

RED GUM RESOURCES LIMITED

Quarter ended (“current quarter”) ABN 66 119 641 986 30 JU N E2015

ABN

Consolidatedstatementofcashflow s

Cash flows related to operating activities
1.1
Receipts from product sales and related
debtors
1.2
Payments for
(a) exploration & evaluation
(b) development
(c) production
(d) administration
1.3
Dividends received
1.4
Interest and other items of a similar nature
received
1.5
Interest and other costs of finance paid
1.6
Income taxes paid
1.7
Other (provide details if material)
Transaction costs
Net Operating Cash Flows
Current quarter
$A’000
Year to date
(12 months)
$A’000
-
(30)
-
-
(165)
-
2
-
-
(86)
-
(73)
-
-
(714)
-
19
-
-
(1,285)
(279) (2,053)
Cash flows related to investing activities
1.8
Payment for purchases of:
(a) prospects
(b) equity investments
(c) other fixed assets
1.9
Proceeds from sale of:
(a) prospects
(b) equity investments
(c) other fixed assets
1.10
Loans to other entities
1.11
Loans repaid by other entities
1.12
Other (provide details if material)
Net investing cash flows
-
-
-
64
-
-
-
-
-
-
-
-
64
-
-
-
-
-
64 64

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Appendix5B M iningexplorationentityandoilandgasexplorationentityquarterlyreport

Current quarter
$A’000
Year to date
(12 months)
$A’000
1.13
Total operating and investing cash flows
(carried forward)
Cash flows related to financing activities
1.14
Proceeds from issues of shares, options, etc.
1.15
Proceeds from sale of forfeited shares
1.16
Proceeds from borrowings - convertible loan
1.17
Repayment of borrowings
1.18
Dividends paid
1.19
Other –share issue costs
Net financing cash flows
(215) (1,989)
795
-
490
-
-
(154)
795
-
490
-
-
(154)
1,131 1,131
Net increase (decrease) in cash held
1.20
Cash at beginning of quarter/year to date
1.21
Exchange rate adjustments to item 1.20
1.22
Cash at end ofquarter
916
301
-
(858)
2,075
-
1,217 1,217

P aymentstodirectorsoftheentity,associatesofthedirectors,relatedentitiesoftheentityand associatesoftherelatedentities

1.23
1.24
Aggregateamountofpaymentstothepartiesincludedinitem 1.2
Aggregateamountofloanstothepartiesincludedinitem 1.10
Currentquarter
$A'000
170
-
1.25 Explanationnecessaryforanunderstandingofthetransactions
Cash payment in respect of directors’ gross remuneration and fees, including consulting fees.

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Appendix5B M iningexplorationentityandoilandgasexplorationentityquarterlyreport

N on-cashfinancingandinvestingactivities

2.1 Details of financing and investing transactions which have had a material effect on
consolidated assets and liabilities but did not involve cash flows

N/A

  • 2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest

N/A

Financingfacilitiesavailable

Addnotesasnecessaryforanunderstandingoftheposition.

3.1
Loan facilities
3.2
Credit standby arrangements
Amount available
$A’000
Amount available
$A’000
Amount used
$A’000
Nil Nil
Nil Nil
Estimatedcashoutflow sfornextquarter
4.1
Exploration and evaluation
4.2
Development
4.3
Production
4.4
Administration
$A’000
18
-
-
125
Total Company ongoing outflows 143
Transaction costs deposit to be refunded (125)
Total 18

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Appendix5B M iningexplorationentityandoilandgasexplorationentityquarterlyreport

R econciliationofcash

R econciliationofcash
Reconciliation of cash at the end of the quarter (as
shown in the consolidated statement of cash flows)
to the related items in the accounts is as follows.
Current quarter
$A’000
Previous quarter
$A’000
5.1
Cash on hand and at bank
5.2
Deposits at call
5.3
Bank overdraft
5.4
Other (provide details)
1,217 301
- -
- -
- -
Total: cash at end of quarter(item 1.22) 1,217 301

Changesininterestsinminingtenementsandpetroleum tenements

6.1
Interests in mining
tenements and
petroleum tenements
relinquished, reduced
or lapsed
6.2
Interests in mining
tenements and
petroleum tenements
acquired or increased
Tenement reference
and location
Nature of
interest
(note(2))
Interest at
beginning
ofquarter
Interest at
end of
quarter
Cerro Huancash
Peru
(a) 100% N il
n/a n/a n/a n/a

(a) The Company through its wholly owned subsidiary, Red Gum Resources (Peru) Pty Ltd held 100% beneficial interest in the shares in Central Peru Resources (“CPR”), which in turn holds 100% of the Cerro Huancash Peruvian Projects. During the period CPR sold Cerro Huancash interest for $64,739 (USD $50,000).

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Appendix5B M iningexplorationentityandoilandgasexplorationentityquarterlyreport

Issuedandquotedsecuritiesatendofcurrentquarter

Description includes rate of interest and any redemption or conversion rights together with prices and dates.

Total number Number quoted Issue price per
security (see
note3) (cents)
Amount paid up
per security (see
note3) (cents)
7.1
Preference
+securities
(description)
7.2
Changes during
quarter
(a) Increases
through issues
(b) Decreases
through returns
of capital, buy-
backs,
redemptions
Nil Nil
Nil Nil
Total number Number quoted Issue price per
security (see
note3) (cents)
Amount paid up
per security (see
note3) (cents)
7.3
+Ordinary
securities
55,610,212 55,610,212
7.4
Changes during
quarter
(a) Increases
through issues
8 April 2015
11 May 2015
21 may 2015
(b) Decreases
through returns
of capital, buy-
backs
2,800,000
19,900,699
14,000,007
2,800,000
19,900,699
14,000,007
$0.035
$0.035
$0.035
$0.035
$0.035
$0.035
7.5
+Convertible
debt
securities
Convertible
loan
7.6
Changes during
quarter
(a) Increases
through issues
(b) Decreases
through
securities
matured,
converted
Nil Nil
Nil Nil

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Appendix5B

M iningexplorationentityandoilandgasexplorationentityquarterlyreport

7.7
Options
(description and
conversion
factor)
RGXO
RGXAOA
RGXAK
7.8
Issued during
quarter
7.9
Exercised
during quarter
7.10
Expired during
quarter
1,391,730
4,000,047
113,634
5,505,411
1,391,730
4,000,047
113,634
5,505,411
Exercise price
$4.40
$0.44
$6.60
Expiry date
01/03/2016
15/11/2017
30/06/2016
Nil Nil
Nil Nil
N il Nil
7.11
Debentures
(totals only)
Nil Nil
7.12
Unsecured
notes(totals
only)
Nil Nil

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Appendix5B M iningexplorationentityandoilandgasexplorationentityquarterlyreport

Compliancestatement

1 T hisstatementhasbeenpreparedunderaccountingpoliciesw hichcomplyw ithaccounting standardsasdefinedintheCorporationsActorotherstandardsacceptabletoAS X (seenote5).

2 T hisstatementdoes/doesnot* (deleteone) giveatrueandfairview ofthematters disclosed.

29 July2015 S ignhere: ............................................................ Date:............................ (Companysecretary)

Mr Malcolm Lucas Smith

P rintname: .........................................................

N otes

1 T hequarterlyreportprovidesabasisforinformingthemarkethow theentity’sactivities havebeenfinancedforthepastquarterandtheeffectonitscashposition. Anentityw antingto discloseadditionalinformationisencouragedtodoso,inanoteornotesattachedtothisreport.

2 T he“ N atureofinterest” (items6.1 and6.2)includesoptionsinrespectofinterestsinmining tenementsandpetroleum tenementsacquired,exercisedorlapsedduringthereportingperiod. If theentityisinvolvedinajointventureagreementandthereareconditionsprecedentw hichw ill changeitspercentageinterestinaminingtenementorpetroleum tenement,itshoulddisclosethe changeofpercentageinterestandconditionsprecedentinthelistrequiredforitems6.1 and6.2.

3 Issuedandquotedsecurities T heissuepriceandamountpaidupisnotrequiredinitems 7.1 and7.3 forfullypaidsecurities .

4 T hedefinitionsin,andprovisionsof, AAS B 6:ExplorationforandEvaluationofM ineral R esources and AAS B 107:S tatementofCashFlow s applytothisreport.

5 AccountingS tandards AS X w illaccept,forexample,theuseofInternationalFinancial R eportingS tandardsforforeignentities. Ifthestandardsuseddonotaddressatopic,theAustralian standardonthattopic(ifany)mustbecompliedw ith.

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+S eechapter19 fordefinedterms.

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