MOAB MINERALS LIMITED — Annual Report 2021

Aug 30, 2021

Appendix 4E Preliminary final Report

Appendix 4E

Preliminary final report

Name of entity

Delecta Limited

ABN or equivalent company Financial year ended (‘current period’) reference 92 009 147 924 30 June 2021

Results for announcement to the market

$A'000

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Revenues from continuing operations Down 1% to 16,543
Loss from continuing operations after tax
attributable to members Down 53% to (139)
Net loss after tax for the period attributable to Down 53% to (139)
members
Dividends (distributions) Amount per Franked amount per
security security
Final dividend
Interim dividend None - ¢
Previous corresponding period
None - ¢
+Record date for determining entitlements to
the dividend, N/A
(in the case of a trust, distribution)
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The above results should be read in conjunction with the notes and commentary contained in this report.

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Appendix 4E Preliminary final Report

Management Discussion and Analysis

Overview

The consolidated entity recorded a net loss attributable to members of $139,000 (2020: loss $298,000) from operations.

The total loss per share for the year was 0.01 cents (2020: loss 0.04 cents).

The total group revenues decreased by 1% to $16,543,000.

Summarised operating results are as follows:

Year ended 30 June 2021

Year ended 30 June 2021
Operating Segment	Sales and services revenues from external customers $’000 Other income $’000 Earnings before interest, tax, depreciation, amortisation and impairment $’000 Depreciation, amortisation and impairment $’000 Interest (paid)/ received $’000	Profit / (loss) before income tax $’000
Wholesale Exploration & Evaluation Unallocated Income Tax Expense Non-controlling interests Total	16,543 213 2,251 (246) (30) - - (35) (1,188) - - (968) - 2	1,975 (1,223) (966)
	16,543 213 1,248 (1,434) (28)	(214) (16) 91 (139)

Year ended 30 June 2020

Year ended 30 June 2020
Operating Segment	Sales and services revenues from external customers $’000 Other income $’000 Earnings before interest, tax, depreciation, amortisation and impairment $’000 Depreciation, amortisation and impairment $’000 Interest Paid/ received $’000	Profit / (loss) before income tax $’000
Wholesale Exploration & Evaluation Unallocated Income Tax Credit Total	16,652 365 909 (82) - - - (29) - - (1,106) - 1	827 (29) (1,105)
	16,652 365 (226) (82) 1	(307) 9 (298)

Wholesale

Wholesale sales revenue for the year decreased slightly in comparison to the prior year. A positive increase in sales revenues in the first half of the financial year was reversed in the second half following the cessation of the Australian Federal Government stimulus packages.

However, the division’s focus on providing premium products and a premium service to suppliers and customers, along with the improvement in the Australian / US Dollar exchange rate and cost savings, resulted in the increase in the profitability of the segment.

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Appendix 4E Preliminary final Report

Exploration & Evaluation

In January 2021, the group entered into a mining lease and option to purchase agreement to acquire the Speedway Gold Project, located in Tooele County, Utah, USA

Geological mapping and rock chip sampling was completed over the project and the company’s consultant geologist has produced a report with recommendations for drill testing of gold targets. An airborne magnetic survey and an orthophotographic survey have also been completed to provide base maps for ongoing work including drill testing.

The results of this work are currently being assessed by the Company with the objective of finalising the targets to be tested and the scope of a drill program.

The Group’s investments in the Highline Cobalt-Copper project in Nevada, USA, and Sunrise Mineral’s Rex Vanadium-Uranium project in Colorado, were written down during the year. No substantive expenditure or exploration and evaluation of mineral resources at the Highline project is currently planned.

Given the recent positive sentiment in relations to uranium and vanadium the Company is planning to conduct geological mapping and rock chip sampling at the Rex Vanadium-Uranium project.

Head Office / Corporate

Head office / corporate expenditure for the year decreased to $966,000 from $1,105,000 in the previous financial year, although the prior year included $330,000 in costs relating to a withdrawn prospectus and a discontinued ASX re-compliance program.

Contingencies

There were no known contingent assets or liabilities within the group at year end.

Share Capital

212,625,000 ordinary shares and 236,312,500 unlisted options (exercisable at $0.008 on or before 3 September 2023) were issued following shareholder approval at a general meeting held on 2 September 2020.

A further 10,000,000 unlisted options (exercisable at $0.01 on or before 31 December 2023) were issued on 27 January 2021.

Subsequent Events

No matter or circumstance has arisen since the end of the financial year to the date of this report which has significantly affected, or may significantly affect, the operations of the consolidated entity, the results of those operations or the state of affairs of the consolidated entity in future financial years.

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Appendix 4E Preliminary final Report

Statement of Comprehensive Income For the Year ended 30 June 2021

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Consolidated
For the year For the year
Notes ended 30 June ended 30 June
2021 2020
$'000 $'000
Continuing Operations
Revenue 3 16,543 16,652
Cost of sales (11,313) (12,452)
Gross Profit 5,230 4,200
Other income 3 215 365
Other expenses (4,471) (4,872)
Impairment of Exploration assets 10 (1,188) -
Loss from continuing operations before
income tax (214) (307)
Income tax (expense) / credit (16) 9
Net loss for the period (230) (298)
Attributable to:
Equity holders of the parent (139) (298)
Non-controlling interests (91) -
(230) (298)
Other comprehensive income / (losses)
Items that may be reclassified subsequently to
profit and loss
- Foreign currency translation 1 9
- Fair value income / (loss) on assets at fair
value through other comprehensive income 33 (407)
Other comprehensive income / (losses) 34 (398)
Attributable to:
Equity holders of the parent 34 (398)
Non-controlling interests - -
34 (398)
Total comprehensive loss for the period (196) (696)
Attributable to:
Equity holders of the parent (105) (696)
Non-controlling interests (91) -
(196) (696)
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Appendix 4E Preliminary final Report

	For the year ended 30 June 2021 $'000 For the year ended 30 June 2020 $'000	For the year ended 30 June 2021 $'000 For the year ended 30 June 2020 $'000
Earnings per share
From operations Basic loss per share Diluted loss per share	(0.01) cents (0.01) cents	(0.04) cents (0.04) cents

The Condensed Statement of Comprehensive Income should be read in conjunction with the accompanying notes.

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Appendix 4E Preliminary final Report

Statement of Financial Position As at 30 June 2021

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As at As at
Consolidated Notes 30 June 2021 30 June 2020
$'000 $'000
Current assets
Cash and cash equivalents 1,845 1,722
Trade and other receivables 1,827 2,329
Inventories 3,202 2,100
Financial assets at fair value through Other
Comprehensive Income 3 572 539
Prepayments and deposits 1,141 938
Total current assets 8,587 7,628
Non-current assets
Plant and equipment 258 184
Right of use asset 647 798
Exploration and evaluation 4 336 908
Deferred tax asset 18 15
Total non-current assets 1,259 1,905
Total assets 9,846 9,533
Current liabilities
Trade and other payables 905 990
Share placement funds received in advance - 440
Current tax liabilities 14 6
Lease liabilities 156 121
Provisions 223 182
Total current liabilities 1,298 1,739
Non-current liabilities
Lease liabilities 549 704
Provisions 117 116
Total non-current liabilities 666 820
Total liabilities 1,964 2,559
Net assets 7,882 6,974
Equity
Contributed equity 5 71,229 70,497
Reserves 449 143
Accumulated losses (63,805) (63,666)
Equity attributable to equity holders of the
parent 7,873 6,974
Non-controlling interests 9 -
Total equity 7,882 6,974
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Appendix 4E Preliminary final Report

Cash Flow Statement For the Year ended 30 June 2021

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Consolidated Notes For the year For the year
ended 30 June ended 30 June
2021 2020
$’000 $’000
Cash flows from operating activities
Receipts from customers 19,264 18,586
Payments to suppliers and employees (18,765) (18,131)
Interest paid (28) (29)
Interest received 1 1
Net cash flows from operating activities 472 427
Cash flows used in investing activities
Payment for purchases of property, plant and
equipment (158) (47)
-
Investment in exploration and evaluation activities (486)
Security deposits refunded 50 -
Net cash flows used in investing activities (594) (47)
Cash flows from financing activities
Share placement funds received 367 818
Principal repayment of lease liability (120) (109)
Net cash flows from financing activities 247 709
Net increase in cash held 125 1,089
Cash and cash equivalents at beginning of period 1,722 637
Net foreign exchange difference (2) (4)
Cash and cash equivalents at end of period 1,845 1,722
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Appendix 4E Preliminary final Report

Statement of Changes in Equity Year ended 30 June 2021

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Consolidated
Issued Accumulated Other Non- Total
Capital losses reserves controlling equity
$’000 $’000 $’000 interest $’000
$’000
At 30 June 2019 70,118 (63,368) 541 - 7,291
- - -
Loss for the year (298) (298)
Other comprehensive income - - (398) - (398)
Total comprehensive income
- -
for the year (298) (398) (696)
Issue of share capital 379 - - - 379
At 30 June 2020 70,497 (63,666) 143 6,974
- -
Loss for the year (139) (91) (230)
Other comprehensive income - - 34 - 34
Total comprehensive income
for the year - (139) 34 (91) (196)
Issue of share capital 732 - - - 732
Issue of share options - - 272 - 272
Equity attributable to non-
controlling interest - - - 100 100
At 30 June 2021 71,229 (63,805) 449 9 7,882
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Appendix 4E Preliminary final Report

Reconciliation of cash

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Reconciliation of cash at the end of the period (as shown in
the consolidated statement of cash flows) to the related items As at 30 June As at 30 June
in the accounts is as follows : 2021 2020
$'000 $'000
Cash on hand and at bank 1,294 1,716
Deposits at call 551 6
Total cash at end of period 1,845 1,722
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Non-cash financing and investing activities

There were no non-cash financing and investing activities undertaken by the consolidated entity in the current or prior financial year.

NTA backing

NTA backing
	As at 30 June 2021 As at 30 June 2020
Net tangible asset backing per ordinary security	0.78 cents	0.88 cents

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Appendix 4E Preliminary final Report

Notes to the Preliminary Final Report

1 REVENUE AND EXPENSES

Consolidated Revenue Continuing Operations Sales and services revenue	For the year ended 30 June 2021 $'000 For the year ended 30 June 2020 $'000	For the year ended 30 June 2021 $'000 For the year ended 30 June 2020 $'000
	16,543 16,652
	16,543 16,652
Other Income Continuing Operations Finance revenue Foreign exchange gain Other Income	2 - 213 1 - 364
	215 365
Expenses Continuing operations Administration expenses Distribution expenses Marketing expenses Occupancy expenses Other	3,215 132 84 327 2,327 3,482 184 119 413 674
	5,874 4,872
Continuing Operations Included in other expenses: Depreciation and amortisation of fixed assets Foreign exchange loss Write off of exploration expenditure Costs associated with terminated American Vanadium Pty Ltd agreement, ASX re-compliance and withdrawn prospectus	66 87 1,223 -	82 102 29 330

2 TAXATION

	As at 30 June 2021 $'000 As at 30 June 2020 $'000	As at 30 June 2021 $'000 As at 30 June 2020 $'000
Current year’s tax charge Deferred tax asset	19 15 (3) (6)
	16	9

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Appendix 4E Preliminary final Report

3 FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME

Listed 11,000,000 Ordinary shares European Lithium Limited Opening fair value Fair value gain/ (loss)forthe period	As at 30 June 2021 $'000 As at 30 June 2020 $'000	As at 30 June 2021 $'000 As at 30 June 2020 $'000
	539 946 33 (407)
	572	539

At 30 June 2021 the group’s investment in European Lithium Limited was re-valued to market value with the movement being recorded in other comprehensive income.

This is a level 1 measurement basis on the fair value hierarchy.

4 EXPLORATION AND EVALUATION

	As at 30 June 2021 $'000 As at 30 June 2020 $'000	As at 30 June 2021 $'000 As at 30 June 2020 $'000
Highline Cobalt / Copper Project SpeedwayGold Project	- 908 336 -
	336	908

5 ISSUED CAPITAL

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As at As at
30 June 2021 30 June 2020
$'000 $'000
Issued and fully paid
Ordinary shares 71,229 70,497
71,229 70,118
Number of shares $’000
Movements in ordinary shares on issue
At 1 July 2020 795,996,205 70,497
Issued during the year 212,625,000 732
At 30 June 2021 1,008,621,205 71,297
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Appendix 4E Preliminary final Report

6 OPERATING SEGMENTS

Identification of Reportable Segments

The Group has identified its operating segments based on its internal reports and used by the executive team (the chief operating decision makers) in assessing performance and in determining the allocation of resources.

The operating segments are identified by management based on the manner in which the product is sold and the nature of the services provided. Discrete financial information about each of these operating businesses is reported to the executive management team on a monthly basis.

The reportable segments are based on aggregated operating segments determined by the similarity of the manner in which the products are sold or provided as these are the sources of the Group’s major risks and have the most effect on the rates of return.

Types of Products and Services

Wholesale

The wholesale segment divisions are those divisions that sell adult products directly to wholesale customers in Australia and New Zealand.

Exploration and Evaluation

The exploration and evaluation segment relates to the group’s interests in various exploration and evaluation projects.

Accounting Policies and Inter-segment Transactions

The accounting policies used by the Group in reporting segments are the same as those contained in note 2 to the financial statements and in prior periods.

Inter-entity sales

Wholesale sales within the group are at cost.

Corporate Charges

Non-segmental expenses, such as head office expenses and expenses that are not directly attributable to a segment and not considered part of the core operations of any segment, are not allocated to operating segments by way of corporate charges and include:

• Head office employee expenses and directors’ fees

• Company secretarial and listing expenses

• Group legal fees

• General head office expenses (travel and accommodation, directors and officer’s insurance, telephone, etc)

The following table presents the revenue and profit information relating to business segments for the years ended 30 June 2021 and 30 June 2020:

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Appendix 4E Preliminary final Report

30 June 2021 Segment Revenue Sales to and other revenue from external customers Other income Unallocated interest income Total Revenue and Other Income per the Statement of Comprehensive Income Segment Result Segment Results Unallocated items - Corporate expenses - Interest income - Non-controlling interests - Income tax expense Net loss attributable to equity holders of the parent per the Statement of Comprehensive Income 30 June 2020 Segment Revenue Sales to and other revenue from external customers Other income Unallocated interest income Total Revenue and Other Income per the Statement of Comprehensive Income Segment Result Segment Results Unallocated items - Corporate expenses - Interest income - Income tax credit Net loss attributable to equity holders of the parent per the Statement of Comprehensive Income	Continuing Operations Wholesale Exploration & Evaluation $’000 $’000	Total $’000
	16,543 - 213 1,975 (1,223) Continuing Operations Wholesale Exploration & Evaluation $’000 $’000	16,543 213 2
		16,578
		752 (968) 2 91 (16) (139) Total $’000
	16,652 - 364 827 (29)	16,652 364 1
		17,017
		798 (1,106) 1 9 (298)

7 DIVIDENDS PAID AND PROPOSED

No dividends have been paid or proposed during the year.

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Appendix 4E Preliminary final Report

Annual meeting

(Preliminary final report only)

The annual meeting will be held as follows:

Place

Date

Time

Approximate date the[+] annual report will be available

To be confirmed To be confirmed To be confirmed 22 October 2021

Compliance statement

• 1 This report has been prepared in accordance with ASX Listing Rules.

• 2 This report, and the +accounts upon which the report is based (if separate), use the same accounting policies.

• 3 This report does give a true and fair view of the matters disclosed.

• 4 This report is based on +accounts to which one of the following applies.

(Tick one)

 The[+] accounts have been  audited.

• The[+] accounts have been subject to review.

 The[+] accounts are in the  process of being audited or subject to review.

The[+] accounts have not yet been audited or reviewed.

Authorised by the Board

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Sign here: ............................................................ Date: 31 August 2021 (Managing Director)

Print name: Malcolm Day

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