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NEURIZER LTD — Interim / Quarterly Report 2016
Feb 28, 2016
65442_rns_2016-02-28_c9ce239f-c04c-4d19-bb2b-39e9a703c717.pdf
Interim / Quarterly Report
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Leigh Creek Energy Limited ACN 107 531 822
Interim Financial Report
31 December 2015
1
CONTENTS
| DIRECTORS’ REPORT | 3 |
|---|---|
| AUDITOR’S INDEPENDENCE DECLARATION | 5 |
| FINANCIAL STATEMENTS | 6 |
| NOTES | 10 |
| DIRECTORS’ DECLARATION | 13 |
| AUDITOR’S STATEMENT | 14 |
2
LEIGH CREEK ENERGY LIMITED ACN 107 531 822 AND CONTROLLED ENTITY
DIRECTORS’ REPORT
The directors present their report on Leigh Creek Energy Limited for the half year ended 31 December 2015 and the state of the affairs of the Company at that date.
In order to comply with the provisions of the Corporations Act 2001, the directors report as follows:
Directors
Persons who have been Directors in the Company during or since the end of the half year are:
Justyn Peters Executive Chairman Appointed 28 November 2014
David Shearwood Managing Director Appointed 27 May 2015
Greg English Director (Non-executive) Appointed 22 September 2015
Peter Williams
Director (Non-executive) Appointed 21 May 2004 – Resigned 15 October 2015
Christopher Schacht
Director (Non-executive) Appointed 23 January 2008 – Resigned 30 October 2015
Secretary
Jordan Mehrtens Appointed 16 September 2015
Stuart Appleyard LLB Appointed 28 January 2004 – Resigned 16 September 2015
Review of Operations
During the half-year ended 31 December 2015 the Company incurred a loss of $2,079,268.
The Company changed its name from Marathon Resources Limited to Leigh Creek Energy Limited following approval from shareholders at a General Meeting held on 28 August 2015. Registration of the change of name was effected by the Australian Securities and Investments Commission (ASIC) on 31 August 2015. For the purposes of the Company’s ASX listing, the new code for Leigh Creek Energy Limited is LCK with effect from 3 September 2015.
During the reporting period the Company continued to work towards progressing its Leigh Creek Energy Project (LCEP). The LCEP is focused on generating significant new energy sources by producing gas supplies from the vast Leigh Creek coal reserves via In-Situ Gasification. During the half year to 31 December 2015, the Company announced a number of important technical achievements, such as the acquisition of significant data which led to an independent coal resource estimate to be conducted and reported in accordance with the JORC Code 2012 edition.
3
LEIGH CREEK ENERGY LIMITED ACN 107 531 822 AND CONTROLLED ENTITY
Review of Operations (contd)
MATTERS SUBSEQUENT TO END OF THE HALF YEAR
On 8 January 2016, the Company was pleased to announce the achievement of ISG Gas Resources at the LCEP, independently assessed and certified and reported in accordance with the Society of Petroleum Engineers – Petroleum Resources Management System.
Subsequent to report period, the Company has received $1,719,631 from the sale of the remaining 6,763,802 treasury shares.
There are no other known events subsequent to the reporting date that would have a material effect on the financial statements.
AUDITOR’S INDEPENDENCE
The auditor’s independence declaration is included on page 5 of this interim financial report.
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David Shearwood D J D Peters Director Director
Dated in Adelaide, South Australia this 29[th] day of February 201 6 .
4
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Level 1, 67 Greenhill Rd Wayville SA 5034
Correspondence to: GPO Box 1270 Adelaide SA 5001
T 61 8 8372 6666 F 61 8 8372 6677 E [email protected] W www.grantthornton.com.au
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Grant Thornton Audit Pty Ltd ACN 130 913 594
a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389
‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or refers to one or more member firms, as the context requires. Grant Thornton Australia Ltd is a member firm of Grant Thornton International Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one another and are not liable for one another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to Grant Thornton Australia Limited ABN 41 127 556 389 and its Australian subsidiaries and related entities. GTIL is not an Australian related entity to Grant Thornton Australia Limited.
Liability limited by a scheme approved under Professional Standards Legislation. Liability is limited in those States where a current scheme applies.
Our Ref: Leigh Creek Energy Ltd_Dec15 Independence Declaration.Docx
LEIGH CREEK ENERGY LIMITED ACN 107 531 822 AND CONTROLLED ENTITY
STATEMENT OF PROFIT AND LOSS AND OTHER COMPREHENSIVE INCOME FOR THE HALF YEAR ENDED 31 DECEMBER 2015
| Note | 31 December 31 December 2015 2014 |
|---|---|
| Revenue Interest Income Expenses Depreciation Employee Benefit Expenses Occupancy Share Based Expenses Consulting & Legal Travel Expenses ASX Listing & Registry Exp Corporate Admin (Loss) before income tax Income Tax Expense (Loss) for the period after tax expense Other comprehensive income for the period Total comprehensive income for the period Earnings per share Basic (cents per share) 2 Diluted (cents per share) 2 |
3,362 2,692 (22,393) - (1,191,827) - (53,114) - (145,515) - (82,026) - (95,197) - (33,641) - (458,917) (222,424) |
| (2,079,268) (219,732) |
|
| - - |
|
| (2,079,268) (219,732) |
|
| - - (2,079,268) (219,732) |
|
| (0.01) N/A (0.01) N/A |
6
LEIGH CREEK ENERGY LIMITED ACN 107 531 822 AND CONTROLLED ENTITY
STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2015
| Note | 31 December 30 June 2015 2015 |
|---|---|
| CURRENT ASSETS Cash and cash equivalents Trade and other receivables Financial assets TOTAL CURRENT ASSETS NON-CURRENT ASSETS Property, plant and equipment Exploration and evaluation expenditure 3 TOTAL NON-CURRENT ASSETS TOTAL ASSETS CURRENT LIABILITIES Trade and other payables Short term provisions Employee entitlements TOTAL CURRENT LIABILITIES NET ASSETS EQUITY Issued capital 4 Reserves Accumulated losses TOTAL EQUITY |
877,705 1,484,627 259,854 101,618 18,680 18,680 |
| 1,156,239 1,604,925 |
|
| 72,059 78,570 1,244,828 710,667 |
|
| 1,316,887 789,237 |
|
| 2,473,126 2,394,162 |
|
| 837,330 358,270 - 125,438 44,708 20,803 |
|
| 882,038 504,511 |
|
| 1,591,088 1,889,651 |
|
| 21,128,543 19,493,353 145,515 - (19,682,970) (17,603,702) |
|
| 1,591,088 1,889,651 |
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LEIGH CREEK ENERGY LIMITED ACN 107 531 822 AND CONTROLLED ENTITY
STATEMENT OF CHANGE IN EQUITY FOR THE HALF YEAR ENDED 31 DECEMBER 2015
| Issued Capital Accumulated Losses Share Option Reserve Total |
|
|---|---|
| Balance at 1 July 2015 Shares issued during the period Issue costs Fair value of options issued Transactions with owners Total profit or loss Total other comprehensive income Balance at 31 December 2015 Balance at 1 July 2014 Shares issued during the period Issue costs Transactions with owners Total profit or loss Total other comprehensive income Balance at 31 December 2014 |
19,493,353 (17,603,702) - 1,889,651 1,706,690 - - 1,706,690 (71,500) - - (71,500) - - 145,515 145,515 |
| 1,635,190 - 145,515 1,780,705 |
|
| - (2,079,268) (2,079,268) - - - - |
|
| 21,128,543 (19,682,970) 145,515 1,591,088 |
|
| 3,841 (5,555) - (1,714) 1,777,600 - - 1,777,600 (174,637) - - (174,637) |
|
| 1,602,963 - - 1,602,963 |
|
| - (219,732) - (219,732) - - - - |
|
| 1,606,804 (225,287) - 1,381,517 |
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LEIGH CREEK ENERGY LIMITED ACN 107 531 822 AND CONTROLLED ENTITY
STATEMENT OF CASH FLOWS FOR THE HALF YEAR ENDED 31 DECEMBER 2015
| 31 December 31 December 2015 2014 |
|
|---|---|
| Cash Flows from operating activities Interest and sundry income received Payments to suppliers and employees Net cash provided by / (used in) operating activities Cash flow from investing activities Payments for purchase of Marathon shares Payments for capitalised exploration expenditure Net cash provided by / (used in) investing activities Cash flow from financing activities Payments for capital raising costs Proceeds from issue of share capital Proceeds from receipt of loan Repayment of borrowings Repayment of loan Net cash provided by / (used in) financing activities Net (decrease) / increase in cash held Cash at beginning of half year Cash at end of half year |
3,362 2,692 (1,585,875) (20,430) |
| (1,582,513) (17,738) |
|
| - (685,002) (534,161) (579,902) |
|
| (534,161) (1,264,904) |
|
| (71,500) (174,637) 1,706,690 1,696,000 - 13,000 (125,438) - - (1,720) |
|
| 1,509,752 1,532,643 |
|
| (606,922) 250,001 1,484,627 6 |
|
| 877,705 250,007 |
9
LEIGH CREEK ENERGY LIMITED ACN 107 531 822 AND CONTROLLED ENTITY
NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF YEAR ENDED 31 DECEMBER 2015
NOTE 1 - STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
a) Nature of operations
Leigh Creek Energy Limited’s principal activity is mineral, energy and coal exploration.
b) General information and basis of preparation
The interim consolidated financial statements (the interim financial statements) of the Group are for the six months ended 31 December 2015 and are presented in Australian dollars($), which is the functional currency of the parent company. These general purpose interim financial statements have been prepared in accordance with the requirements of the Corporations Act 2001 and AASB 134 Interim Financial Reporting. They do not include all of the information required in annual financial statements in accordance with AIFRS, and should be read in conjunction with the consolidated financial statements of the Group for the year ended 30 June 2015 and any public announcements made by the Group during the half-year in accordance with the continuous disclosure requirements arising under the Australian Securities Exchange Listing Rules and the Corporations Act 2001. The Company is a for profit entity for the purposes of preparing its financial statements.
The interim financial statements have been approved and authorised for issue by the board of directors on 26 February 2016.
c) Significant accounting Policies
The interim financial statements have been prepared in accordance with the same accounting policies adopted in the Group’s last annual financial statements for the year ended 30 June 2015.
The accounting policies have been applied consistently throughout the Group for the purposes of preparation of these interim financial statements.
d) Critical accounting estimates and judgements
The Directors evaluate estimates and judgements incorporated into the financial report based on historical knowledge and best available current information. Estimates assume a reasonable expectation of future events and are based on current trends of economic data, obtained both externally and within the Group.
i) Key estimates- impairment
The Group assesses impairment at each reporting date by evaluating conditions specific to the Group that may lead to impairment of assets. Where an impairment trigger exists, the recoverable amount of the asset is determined.
ii) Key judgements – exploration and evaluation expenditure
The future recoverability of capitalised exploration and evaluation expenditure is dependent on a number of factors, including whether the Group decides to exploit the related lease itself or, if not, whether it successfully recovers the related exploration and evaluation asset through sale.
Factors that could impact the future recoverability include the level of reserves and resources, future technological changes, which could impact the cost of mining, future legal changes (including changes to environmental restoration obligations) and changes to commodity prices.
To the extent that capitalised exploration and evaluation expenditure is determined not to be recoverable in the future, profits and net assets will be reduced in the period in which this determination is made.
In addition, exploration and evaluation expenditure is capitalised if activities in the area of interest have not yet reached a stage that permits a reasonable assessment of the existence or otherwise of economically recoverable reserves. To the extent it is determined in the future that this capitalised expenditure should be written off, profits and net assets will be reduced in the period in which this determination is made.
10
LEIGH CREEK ENERGY LIMITED ACN 107 531 822 AND CONTROLLED ENTITY
NOTE 2 – EARNINGS PER SHARE
| 31 December | 31 December | |
|---|---|---|
| 2015 | 2014 | |
| $ | $ | |
| Basic earnings per share – cents per share | (0.01) | N/A |
| Loss for the period | (2,079,268) | N/A |
| Weighted average number of ordinary shares in calculating the EPS | ||
| 217,094,351 | N/A |
The weighted number of share options on issue during the year is not included in the calculation of diluted earnings per share because they are anti-dilutive for both reported years. These options could potentially dilute basic earnings per share in the future.
NOTE 3 – EXPLORATION AND EVALUATION EXPENDITURE
| NOTE 3 – EXPLORATION AND EVALUATION EXPENDITURE | |
|---|---|
| Project development & exploration costs | 31 December 30 June 2015 2015 $ $ 1,244,828 710,667 |
| 1,244,828 710,667 |
The Company’s interests in tenements at the date of this report are as follows:
| Tenement | Location | Interest |
|---|---|---|
| PEL 650 | Leigh Creek | 100% |
| PELA 582 | Finniss Springs | 100% |
| PELA 643 | Callabonna | 100% |
| PELA 647 | Leigh Creek | 100% |
| PELA 644 | Roxby Downs | 100% |
| PELA 649 | Oakdale | 100% |
| EL 5596 | Leigh Creek | 100% |
| EL 5597 | Leigh Creek | 100% |
11
LEIGH CREEK ENERGY LIMITED ACN 107 531 822 AND CONTROLLED ENTITY
NOTE 4 – ISSUED CAPITAL
31 December 2015
| Outstanding at beginning of period Treasury shares sold during the period Less capital raising costs Balance at end of period Outstanding at beginning of period Deemed acquisition of ARP TriEnergy Less treasury shares held Balance at end of period |
Number $ 215,539,472 19,493,353 8,236,198 1,706,690 - (71,500) |
|---|---|
| 223,775,670 21,128,543 |
|
| Number $ 138,331,683 1,609,241 92,207,789 18,441,557 (15,000,000) (557,445) 30 June 2015 |
|
| 215,539,472 19,493,353 |
NOTE 5 – RESERVES
Listed below is a summary of options issued during the period:
| Balance at 1 July 2015 Issue of options during the period Balance at 31 December 2015 |
31 December 2015 $ - 145,515 145,515 |
|---|---|
During the 6 months to December 2015, 14,250,000 Options were issued to employees and directors under their employment contracts and 2,000,000 Options issued to Mr Peter Williams.
NOTE 6 – SEGMENT INFORMATION
The Board has considered the requirements of AASB 8 Operating Segments and the internal reports that are reviewed by the chief operating decision maker (the Board) in allocating resources and has concluded at this time that there are no separately identifiable segments.
NOTE 7 – SUBSEQUENT EVENTS
On 8 January 2016, the Company was pleased to announce the achievement of ISG Gas Resources at the LCEP, independently assessed and certified and reported in accordance with the Society of Petroleum Engineers – Petroleum Resources Management System.
Subsequent to report period, the Company has received $1,719,631 from the sale of the remaining 6,763,802 treasury shares.
12
LEIGH CREEK ENERGY LIMITED ACN 107 531 822 AND CONTROLLED ENTITY
The Directors declare that:
In the opinion of the directors of the company:
-
The financial statements and notes, as set out on pages 6 to 12, are in accordance with the Corporations Act 2001 including:
-
(a) Complying with Accounting Standard AASB 134 Interim Financial Reporting and Corporations Regulations 2001; and
-
(b) Giving a true and fair view of the consolidated entity’s financial position as at 31 December 2015 and of its performance, as represented by the results of its operations and cash flows for the half-year ended on that date.
-
There are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.
This declaration is made in accordance with a resolution of the Board of Directors.
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David Shearwood Director
D J D Peters Director
Dated in Adelaide, South Australia this 29[th] day of February 2016.
Leigh Creek Energy Limited ACN 107 531 822 Level 11, 19 Grenfell Street Adelaide, SA 5000 Telephone (08) 8132 9100 Facsimile (08) 8231 7574 [email protected] www.lcke.com.au
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Level 1, 67 Greenhill Rd Wayville SA 5034
Correspondence to: GPO Box 1270 Adelaide SA 5001
T 61 8 8372 6666 F 61 8 8372 6677 E [email protected] W www.grantthornton.com.au
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Grant Thornton Audit Pty Ltd ACN 130 913 594 a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389
‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or refers to one or more member firms, as the context requires. Grant Thornton Australia Ltd is a member firm of Grant Thornton International Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one another and are not liable for one another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to Grant Thornton Australia Limited ABN 41 127 556 389 and its Australian subsidiaries and related entities. GTIL is not an Australian related entity to Grant Thornton Australia Limited.
Liability limited by a scheme approved under Professional Standards Legislation. Liability is limited in those States where a current scheme applies.
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