PRL GLOBAL LTD — Annual Report 2020

Aug 30, 2020

CI Resources Limited

Financial Report For the financial year ended 30 June 2020

CI Resources Limited ACN 006 788 754

Contents Page

Chairman's letter	2
Managing Director's report	5
Corporate directory	7
Directors' report	8
Auditor's independence declaration	20
Corporate governance disclosures	21
Financial report	25
Directors' declaration	76
Independent audit report tothe members	77
ASX additional information	82

Chairman's Letter

I am pleased to present the 2019/20 Annual Report for CI Resources Limited.

FINANCIAL PERFORMANCE

The year ended 30 Jun 2020 was one of the most challenging in Company history, with already weak market conditions being further impacted by the COVID-19 pandemic which emerged towards the end of the financial year.

This difficult environment resulted in weaker demand across the region for fertilizers. High quality, high value fertilizers have been hit particularly hard with a temporary shift to low cost alternatives, which has directly impacted our Christmas Island Rock Phosphate (CIRP) as a key fertilizer ingredient for the higher cost fertilizers. As a result sales volumes of Phosphate dropped more than 20% from the previous period.

The Managing Director in his report outlines our strategic response to these challenges, including a major shutdown and restructure of the business during the year significantly cutting our cost of production, alongside the execution of our diversification strategy.

Against the backdrop of this weak market and assertive actions taken by the Board and Management, the Company has been able to record a small underlying net profit after tax in extremely difficult conditions.

DIVERSIFICATION STRATEGY

The Company's diversification strategy over the past few years has started to come to fruition enabling us to offset weakening conditions in the fertilizer market impacting our phosphate mining business.

CI Maintenance Services (CIMS) and Indian Ocean Oil continue to deliver positive results for the Company, with a large portion of our underlying profit this year being driven by these two non-mining businesses.

CIMS this year commenced delivery of a 3-year contract with the Department of Home Affairs for Facilities Management Services for all of the Detention Centre assets on Christmas Island. CIMS has also assisted the Federal Government during the year to enable the initial COVID-19 evacuees from Wuhan in February 2020 to quarantine on Christmas Island prior to returning to mainland Australia.

In addition, the Company has focused on a diversification strategy oriented around both assisting to further develop Christmas Island and growing our reach into the global fertilizer market.

In terms of Christmas Island, we are investing further into our on-island subsidiaries, while also considering opportunities to diversify into sustainable alternate industries on Christmas Island.

Turning to the fertilizer market, we have further invested in Phosphate Resources Malaysia (PRM) our fertilizer sales, marketing, manufacturing and warehousing arm, enabling us to better service our customers in the region. While CIRP remains a core product marketed by PRM, we have further grown the product mix to allow us to better meet customer requirements.

During the year we began to leverage our investment in Pacific Biofert Fertilizers (PBF), a Biological Fertilizer company based in New Zealand. PBF manufacture and distribute a product called BioPhos, that uses a patented biological process to enhance phosphate solubility. This product is sold as an organic alternative to traditional chemical enhanced fertilizers. Our 50% JV investments represents a further diversification into value added and technically advanced phosphate products.

CI Resources, is currently considering a number of other complimentary investments in both companies and technologies which form part of the fertilizer value chain, with the goal of enabling the Company to grow market share and reach as well as profitability going forward.

Chairman's Letter

IMPAIRMENT OF PLANTATION ASSETS

Phosphate Resources Limited (PRL) purchased Cheekah Kemayan Plantations in 2011 and the transaction gave rise to goodwill. Since purchasing that asset it has been subject to annual impairment testing under AASB 136 Impairment of Assets and any impairment recorded in the income statement. The Company values goodwill on an annual basis using a value in use (VIU) methodology – this isthe present value of the future cash flows expected to be derived from CKP.

Management and the Board have made the determination in FY 2020, in light of the continuing challenging market for plantations and subsequent impact on the VIU calculation, to impair the asset by $3.1M.

It is important to note that the impairment is a non-cash, non-recurring item, and that this one-off impairment expense does not impact the underlying profit for the business which continues to be positive.

DIVIDENDS

While CI Resources has maintained a dividend policy of providing consistent dividends over the past 6 years, the Company is facing a challenging and uncertain environment, while also making investments to underpin the future growth of the business.

In the Half Year Report ended 31 December I noted that a decision on dividends would be deferred until year end. At this time, the Board feels it prudent to suspend any dividends to shareholders, in spite of our underlying profitability. Dividends will be reinstated in due course once we have clear signs of recovery in the Company's key markets, providing greater visibility of earnings in our core mining business.

SUSTAINABILITY

Despite the current downturn in our markets, and its impact on our results, the Company is confident that there is a positive medium-term outlook for our business and the Christmas Island operations. The growing global population and resultant increased demand for high quality food production leaves the Company well-positioned as a key fertilizer supplier supporting our customers to enhance both agricultural yields and quality.

As I stated in last year's report, based upon our ongoing estimation and review of indicated and inferred resources available to the Company and with our best judgements on current commercial parameters it is reasonable to expect we can sustain viable mining operations on Christmas Island for the foreseeable future.

The Managing Director also published our inaugural Sustainability Report alongside this Annual Report for FY 2020. We are delighted to showcase the myriad of programs run by this Company over the past year, as part of 30-year commitment to sustainability for Christmas Island, our workers and the broader community. While economically we are a major driver of activity on the island, we also are fully invested in supporting a thriving community and environment for this and future generations. Read all about some of our more significant initiatives in the Sustainability Report published alongside this report.

The Company has also worked closely with the Commonwealth over the course of the year participating in an EPBC Strategic Assessment for Christmas Island. This had the goal of providing the community, and current and prospective businesses with a clear plan that will identify sustainable economic development opportunities for the Island, including future mining opportunities.

FUTURE

The Board of CI Resources is satisfied that the Company remains in a robust financial position.

The Company is expecting the soft conditions to continue over the next 12 months with continued efforts to improve efficiencies and lower production costs to provide the most competitive product possible, while always striving to continually improve the customer experience.

Chairman's Letter

Further the year ahead will be firmly focused on continuing to execute on our diversification strategy. We will look to make further inroads on Christmas Island and in our fertilizer vertical integration pursuit.

We retain full confidence in our Leadership team, to navigate the Company through these headwinds and continue to deliver on our growth and diversification strategy and in turn create sustainable and long-term value for our shareholders.

I finally take this opportunity on behalf of the Board to thank our shareholders, employees, managers and executives for their contributions to a successful outcome in challenging circumstances.

David Somerville Chairman 28 August 2020

Managing Director's Report

I am delighted to provide my Managing Director's report for CI Resources for the financial year ending 30 June 2020.

I would first like to offer my sincere thanks to our dedicated employees across all our operations who have worked hard to deliver in a very challenging environment and to our shareholders who have remained committed to the long term vision of the Company in this our 30th year of operations for Phosphate Resources Ltd (PRL), the Group's main subsidiary.

MARKET CONDITIONS

CI Resources and PRL continued to face significant headwinds during the financial year ending 30 June 2020 due to weak conditions in our key phosphate markets of South East Asia and the impacts of COVID-19 later in the year.

PRL's main customers are fertilizer and agricultural producers (producing food products and biofuels) based in Malaysia and Indonesia. As our markets have been under pressure in recent years, fertilizer application has reduced, directly impacting demand for Christmas Island Rock Phosphate.

These conditions, in our view, are likely to remain for the medium term, however, the long term outlook for the phosphate and the fertilizer market generally, as confirmed by the recent World Bank Commodities Market Outlook Report, looks increasingly positive with growth expected globally in the use of bio fuels, and a continued move by the Industry towards high standards of sustainability such as MSPO (Malaysian Sustainable Palm Oil) and RSPO Certification (Roundtable on Sustainable Palm Oil).

FINANCIAL PERFORMANCE AND PRODUCTION OVERVIEW

In the context of these subdued conditions, the consolidated result was recorded as a profit after tax for FY 2020 of some $0.2M, compared to the prior year of $8.7M. Underlying profit, after removing the impact of the impairment of our plantation assets, was $3.3M.

Group sales of Phosphate, including external trading, decreased to 387,000 tonnes compared to 486,000 in the prior year.

A significant restructure of the PRL mine operations was undertaken in 2019/20 which delivered cost savings in the order of $2.7 Million. We also shut down the mine for an extended period of 12 weeks between December 2019 and March 2020 to offset the weaker demand. These measures proved critical in ensuring the operations remained viable despite the challenging market conditions, and we maintained profitability at a group level.

In addition, CI Resources has invested $13M in capital on Christmas Island over the past 3 years upgrading infrastructure, introducing new automation, and making improvements in our production process. Pleasingly, these measures have enabled the mine to reduce its breakeven sales volume as we continue to improve operational efficiencies and provide flexibility to meet changing market dynamics.

During FY 2020 we also purchased the MV Red Titan – a 8,600 tonne capacity General Cargo Ship which provides flexibility for the company to provide shipments direct to customers in South East Asia, and lowers our overall shipping costs and volatility.

CI MAINTENANCE SERVICES

Christmas Island Maintenance Services (CIMS), a wholly-owned subsidiary, provides a case in point of the Company's success in executing our diversification strategy.

In FY 2020 the Company began delivering a major Contract for the provision of staff accommodation, concierge and facilities management services for the Commonwealth Detention Centre assets on Christmas Island. This new contract, covers the North West Point Facility (previously managed by Serco) and the term of the contract runs until 2022 with two 12-month options for extensions.

Managing Director's Report

During the year CIMS also assisted the Commonwealth to prepare the Detention Centre and accommodation arrangements for the Australian Border Force staff to support the initial batch of Wuhan evacuees.

OUR PLACE IN THE CHRISTMAS ISLAND COMMUNITY

CI Resources, through its on-island subsidiaries, has been an enduring presence on Christmas Island with a positive legacy spanning the past 30 years. The Company has been a key driver of economic activity for Christmas Island, providing jobs and supporting the island's rich diverse cultures as well as providing good returns for shareholders. In addition, the Company has taken seriously its role as a good corporate citizen and supporting the social fabric of the island community.

In that vein, I am proud to announce CI Resources' inaugural annual Sustainability Report. While this is our first report, it is fair to say that our culture has been built on sustainability - at the community level, in our values and ethics, and how we operate our businesses both environmentally and financially. It has provided a wonderful opportunity to reflect on some of the key contributions the Company has made from a sustainability perspective.

In the report published alongside our FY2020 financial report, we touch on some of the major programs, initiatives and outcomes we have achieved over our 30 years history, while also focusing on the past 12 months.

The report demonstrates our contribution to Christmas Island's community and economy has been significant, as confirmed by the University of Western Australia's, Centre for Social Impact in a recent Social and Economic Impact Assessment Report on the Company's impact on Christmas Island's economy and community.

Environmental initiatives of note include our support for the feral cat eradication program, hawk owl nest box initiative and our ongoing significant contribution to the national park via the conservation levy. We also funded a major study into aged care on Christmas Island, while supporting the federal government's strategic health review of the island.

We trust you find the report of great interest and look forward to continuing to support a sustainable Christmas Island into the future.

THE YEAR AHEAD

While the year ahead remains uncertain as we continue to contend with the COVID-19 pandemic and weak market conditions, the Company is well positioned to navigate what lies ahead.

Operationally the Company will look to continue to implement efficiency measures to improve the business with a focus on continuing to lower our cost of production while improving the experience for our customers.

We also will continue to focus on growing our business in Malaysia and South East Asia more broadly, enabling the Company to access new customers and markets. Additionally, as flagged in the Chairman's report, our diversification strategy, which underpins the result this year, will take an even greater emphasis.

The Company continues its focus on investing both on Christmas Island and within our global fertilizer markets, with a focus on unlocking value, further strengthening the group and reducing the reliance on earnings from one source allowing us to achieve our vision of a fully diversified, and multi-faceted company.

In closing I would thank the Board members, executives, senior managers, shareholders and all employees of our group for their continued efforts and support as we enter our fourth decade of operations.

LAI Ah Hong Managing Director 28 August 2020

Corporate directory

Mr David Somerville – Chairman CI Resources Limited shares are Mr Tee Lip Jen Mr Adrian Gurgone Principal registered office in Australia Dato' Sri Kamaruddin bin Mohammed 6 Thorogood Street, Burswood Mr Clive Brown (Resigned 31 Dec 2019) Western Australia 6100

Level 2 Reserve Bank Building 45 St Georges Terrace Bankers Perth WA 6000 Westpac Banking Corporation Telephone +61 8 9323 2000 109 St George's Terrace Facsimile +61 8 9323 2033 Perth, Western Australia 6000

Perth WA 6000 16 Milligan Street

Directors Stock exchange listings

Mr Lai Ah Hong listed on the Australian Securities Exchange Dato' Sri Tee Lip Sin Ordinary fully paid shares (ASX code: CII)

Telephone +61 8 6250 4900 Share register Email info@ciresources.com.au Computershare Investor Services Pty Ltd Website www.ciresources.com.au

Auditor Solicitors

Ernst & Young Steinepreis Paganin Lawyers 11 Mounts Bay Road Level 4 Next Building Perth WA 6000

Directors' report

The Directors of CI Resources Limited (the Company) present their report together with the financial statements of the Group comprising of the Company and its subsidiaries (together referred to as the Group or CI Resources) for the financial year ended 30 June 2020 and the auditor's report thereon.

DIRECTORS

The names and details of the Company's Directors in office during the financial year and until the date of this report are as follows. Directors were in office for the entire period unless otherwise stated. Where applicable, all directorships held in listed public companies over the last three years have been detailed below.

Names, qualification, experience and special responsibilities

David Somerville Chairman – Non-executive (Appointed 28 November 2008)

Experience and expertise

Mr. David Somerville holds a Bachelor of Business degree from Curtin University and a Master of Business Administration from Deakin University, he is an Associate member of CPA Australia and a Fellow of the Australian Institute of Management.

Mr. Somerville has an accounting background having been a senior partner in a large Western Australian accounting practice, before establishing a financial services company which listed on the Australian Securities Exchange in 2007. He has over 30 years experiences in a corporate capacity across a number of companies and a number of industry sectors including financial, resources and property development.

Mr. Somerville is the Chairman of the Investment Committee and a member of the Audit & Risk Management Committee.

Other directorships

David Somerville is Executive Chairman of Questus Ltd, an ASX Listed company since 22 October 2007.

Lai Ah Hong Managing Director (Appointed 9 March 2015)

Experience and expertise

Mr. Lai Ah Hong has been a driving force in the growth and success of Phosphate Resources Limited, from its humble beginnings 30 years ago. It was in 1989 that the Christmas Island community came together to form PRL, investing their hard-earned savings and reopening the mine in 1990. Lai was a founding director of the newly formed entity. Under his leadership the Company has been transformed into an integrated and diversified business with interests in mining, agriculture, energy, asset management, maintenance, transport and logistics. Lai is by nature, an entrepreneur with a keen eye for unlocking business opportunities. He has extensive experience in the phosphate mining and fertilizer industries in Australia and South East Asia.

Mr Lai is a member of the Investment Committee.

Other directorships

Mr. Lai held no other directorships of ASX listed companies during the last three years.

Dato' Sri Tee Lip Sin Director – Executive director (Appointed 1 September 2015)

Experience and expertise

Dato' Sri Tee Lip Sin holds a Bachelor of Arts in Business Administration (Human Resources Management) from the University of Wales, an Associate Diploma in Commerce from Curtin University Australia and an Executive Diploma in Plantation Management from the University Malaya.

He has been involved in palm oil milling and management of palm oil plantations since 1995. Currently, he sits on the board of a number of private companies and is also the Executive Director for the Prosper Group of Companies which holds seven palm oil mills and 60,000 acres of palm oil plantations. He also has experience in operating 35,000 acres of plantation in Indonesia. Dato' Sri Tee Lip Sin was appointed Executive Director of Phosphate Resources (Malaysia) Sdn Bhd and Phosphate Resources (Singapore) Pte Ltd, both wholly owned subsidiaries of CI Resources, effective from 1 July 2015.

Dato' Sri Tee Lip Sin is a member of the Investment Committee.

Directors' report

Other directorships

Dato' Sri Tee Lip Sin held no other directorships of ASX listed companies during the last three years.

Tee Lip Jen Director – Non-executive (Appointed 18 March 2011)

Experience and expertise

Mr. Tee Lip Jen holds a Bachelor of Mechanical Engineering from the Royal Melbourne Institute of Technology (RMIT). Since graduating from Australia, Lip Jen started his career as a Process Engineer in the manufacturing industry for 2 years before expanding his experience as a Project Engineer in a refinery plant specialising in producing downstream palm oil products.

He is currently the Assistant Chief Engineer in charge of overseeing engineering and production activities in ten palm oil mills with an estimated production output of 410,000 metric tonnes of crude palm oil per year. Apart from managing the daily activities in palm oil mills, he is also in charge of overseeing three palm oil plantation estates located in Negeri Sembilan, Malaysia with an estimated acreage of 3,400 acres.

Mr. Tee Lip Jen is a member of the Audit & Risk Management Committee, Investment Committee and Remuneration & Nominations Committee.

Other directorships

Mr. Tee Lip Jen held no other directorships of ASX listed companies during the last three years.

Adrian Gurgone Director – Non-executive (Appointed 18 March 2011)

Experience and expertise

Mr. Adrian Gurgone is an experienced Chartered Accountant and MBA with significant investment, board and business leadership experience. He held senior roles with Deloitte Consulting along with a UK top-tier consulting firm, prior to establishing a successful boutique management consultancy and investment firm in 2007, advising multinational and mid-cap organisations globally.

His experience encompasses investment, strategy, financial and business analysis, risk management and corporate governance across a range of industries including mining and resources. Adrian has held several directorships on private sector and not for profit boards.

Mr. Gurgone is the Chairman of the Audit & Risk Management Committee and is a member of the Remuneration & Nominations Committee.

Other directorships

Mr. Gurgone held no other directorships of ASX listed companies during the last three years.

Dato' Sri Kamaruddin bin Mohammed Director – Non-executive (Appointed 17 January 2013)

Experience and expertise

Dato' Sri Kamaruddin is a business and finance graduate and a Senior Fellow of Financial Services Institute of Australasia (FINSIA). He has had an extensive business career with Pelaburan Mara Berhad (formerly known as Amanah Saham Mara Berhad) retiring as Group Managing Director in 2008.

He has had considerable experience with the palm oil industry and is currently Group Executive Chairman of the Malaysian listed palm oil group, Far East Holdings Berhad. He is also the Chairman of Pascorp Paper Industries Berhad. He is a Director of Amanah Saham Pahang Berhad. Dato' Sri Kamaruddin was appointed Chairman of Cheekah-Kemayan Plantations Sdn Bhd effective from 1 July 2015.

Dato' Sri Kamaruddin is Chairman of the Remuneration & Nominations Committee and is a member of the Audit & Risk Management Committee.

Other directorships

Dato' Sri Kamaruddin held no other directorships of ASX listed companies during the last three years.

Clive Brown Director – Executive (Appointed 9 March 2015, Resigned 31 December 2019)

Mr. Clive Brown was the former Minister for State Development, Small Business and Tourism in Western Australia as well as holding a range of shadow portfolios including community development, justice, multicultural

Directors' report

and ethnic affairs, commerce, and trade. After leaving Parliament he worked as a consultant to a range of large and small mining companies and chaired major reviews into mining occupational health and safety, youth training and vocational education.

He was previously a director of Phosphate Resources Ltd and Non-Executive Chairman of Phosphate Resources Limited. He was appointed Executive Chairman of Phosphate Resources Limited, effective from 1 July 2015 and resigned on 31 December 2019.

Mr. Brown was a member of the Remuneration & Nominations Committee.

Other directorships

Mr. Brown held no other directorships of ASX listed companies during the last three years.

Directors' interests in shares and options

As at the date of this report the interests of the Directors in the shares and options of the Company were:

	Ordinary Shares			Options over Ordinary Shares
	Direct	Indirect	Direct	Indirect
Mr David Somerville	-	-	-	-
Mr Lai Ah Hong	-	4,235,442	-	-
Dato' Sri Tee Lip Sin	783,786	33,630,388	-	-
Mr Tee Lip Jen	1,229,150	-	-	-
Mr Adrian Gurgone	-	-	-	-
Dato'Sri Kamaruddin bin Mohammed	-	150,000	-	-

Retirement, election and continuation in office of directors

In accordance with the Constitution, Mr David Somerville and Dato' Sri Tee Lip Sin will retire, in rotation, as directors at the Annual General Meeting to be held in November 2020 and, being eligible, will offer themselves for re-election.

COMPANY SECRETARY

Elizabeth Lee - B Bus, FGIA, Grad. Dip. Corp. Gov. ASX Listed Entities Company Secretary

Ms. Lee has over 20 years' experience in the areas of corporate governance and company secretarial functions. Prior to joining CI Resources Ltd, Ms. Lee held company secretarial positions for Phosphate Resources Limited, Macmahon Holdings Limited, Corporate Compliance Partners and Lend Lease Primelife Limited. Elizabeth also performed contract company secretarial roles with Macquarie Bank Limited and Austock Group Limited.

Ms. Lee holds a Bachelor of Business majoring in Finance and Business Law from Edith Cowan University, a Graduate Diploma in Corporate Governance from Governance Institute of Australia, a Graduate Diploma in Corporate Governance for ASX Listed Entities from Kaplan Financial Institute and is a Fellow member of the Governance Institute of Australia.

Principal activities

The principal activities during the year of entities within the consolidated entity were:

• mining, processing and sale of phosphate rock, phosphate dust and chalk;
• providing earthmoving, fuel pilotage, maintenance and stevedoring services to other Christmas Island organizations and
• operating a palm oil estate, processing and sale of palm oil products.

Directors' report

Review and results of operations

A summary of consolidated revenues and results is set out below:

	Results	Results
	2020	2019
	$'000s	$'000s
Revenue	125,516	135,772
Profit before income tax expense	215	13,188
Income tax expense	(183)	(4,517)
Net Profit after income tax expense	32	8,671
Earnings per share	2020	2019
	Cents	Cents
Basic earnings per share	0.03	7.50

Dividends

Dividends totaling 1.5 cent per share have been paid during the year ended 30 June 2020. The Directors recommend that no final dividend be paid in respect of the year ended 30 June 2020.

Below is information on the Consolidated Entity's performance for the previous five financial years and for the current year ended 30 June 2020.

	2016	2017	2018	2019	2020
Basic earnings per share (cents)	29.93	17.81	18.30	7.50	0.03
Dividends per share (cents)	9.0	11.0	10.0	6.5	1.5
Share price (cents)	233	150	175	144	95

The Company's share price performance shown in the below graph is a reflection of the Company's performance during the financial year ended 30 June 2020.

Directors' report

Financial Position

At the end of the financial period the consolidated entity had net cash balances of $44.15 million (2019: $39.73 million) and net assets of $190.21 million (2019: $195.31 million).

Total liabilities amounted to $59.79 million (2019: $57.70 million), being trade and other creditors, provisions and borrowings.

Impact of COVID-19

The COVID-19 outbreak was declared a pandemic by the World Health Organization in March 2020. We have seen an impact on our business to date described below. The outbreak and the response of Governments in dealing with the pandemic has affected general activity levels within the economy and the operations of the Group. The scale and duration of these developments remain uncertain as at the date of this report however they have had an impact on our earnings.

The impacts on the Group in the financial year included:

• (a) A decrease in tonnage of phosphate rock and palm oil product sold and produced, notwithstanding local and international assessment that these continue to be assessed as essential services;
• (b) Approximately $0.6 million in wage subsidies (less than one per cent of total salaries and wages) during the financial year, largely relating to the mining operations; and
• (c) The Group also initiated and maintained strict hygiene protocols across our operations and workplaces to minimise the potential transmission of COVID-19 and to ensure the well-being of our people and contractors. Additional risk mitigation strategies enabling the Group to maintain operational production were implemented.

Significant changes in the state of affairs

Other than the impact of COVID-19 as described above, there was no significant change in the state of affairs of the Company or its controlled entities during the financial year other than that referred to below and in the financial statements or notes thereto.

Significant events after the balance date

Subsequent to year end, there are no matters or circumstances that have arisen since 30 June 2020 that has significantly affected, or may significantly affect:

• the consolidated entity's operations in future financial years, or
• the results of those operations in future financial years, or
• the consolidated entity's state of affairs in future financial years.

Likely developments and expected results

Based upon our ongoing estimation and review of indicated and inferred resources available to the Company and with our best judgements on current commercial parameters it is reasonable to expect we can sustain viable mining operations on Christmas Island through to the late 2020's and that the palm oil business will continue to provide reasonable returns for the foreseeable future.

Additional information on likely developments in the operations of the consolidated entity and the expected results of those operations have not been included in this report because the Directors believe that it would be likely to result in unreasonable prejudice to the Company.

Environmental regulation and performance

The Consolidated Entity's holds various licenses regulating its mining and exploration activities on Christmas Island and also holds environmental licenses from the operation of a palm oil mill issued by Malaysian Government.

Licenses issued by the Commonwealth Government of Australia and Malaysian Government include general environmental conditions, air pollution control conditions and water control conditions. These conditions regulate the management of mining waste and restoration, dust, liquid chemical storage and water monitoring.

Directors' report

There have been no significant known breaches of the Consolidated Entity's licenses.

Shares options

There were no options over ordinary shares and no ordinary shares of CI Resources Limited issued during the period ended 30 June 2020 on the exercise of options.

Indemnification and insurance of directors and officers

During or since the financial year, the Company has paid premiums in respect of a contract insuring the Directors of the Group, the company secretary and all Executive officers of the Group and of any related body corporate against a liability incurred as such a Director, Secretary or Executive officer to the extent permitted by the Corporations Act 2001. The Directors have not included details of the nature of the liabilities covered or the amount of the premium paid in respect of the directors and officers liability and legal expenses insurance contracts, as such disclosure is prohibited under the terms of the contract. The Group has not otherwise, during or since the financial year, except to the extent permitted by law, indemnified or agreed to indemnify an officer of the Group or of any related body corporate against a liability incurred by an officer.

Indemnification of auditors

To the extent permitted by law, the Company has agreed to indemnify its auditors, Ernst & Young, as part of the terms of its audit engagement agreement against claims by third parties arising from the audit (for an unspecified amount). No payment has been made to indemnify Ernst & Young during or since the financial year.

Meetings of directors

The number of meetings of the Company's board of directors held during the year ended 30 June 2020 and the number of meetings attended by each director were:

	Directors' Meeting			Audit & Risk		Investment		Remuneration &
				Management	Committee			Nomination
				Committee			Committee
	A	B	A	B	A	B	A	B
Mr David Somerville	5	5	3	3	3	3	-	-
Mr Lai Ah Hong	5	5	-	-	3	3	-	-
Dato' Sri Tee Lip Sin	5	5	-	-	3	3	-	-
Mr Tee Lip Jen	5	5	3	3	3	3	1	1
Mr Adrian Gurgone	5	5	3	3	-	-	1	1
Dato' Sri Kamaruddin	5	5	3	3	-	-	1	1
Mr Clive Brown	5	2	-	-	-	-	1	0

A – Number of meetings held during the time the Director held office during the year.

B – Number of meetings attended.

The CI Resources Board has established an Audit & Risk Management, Remuneration & Nomination and Investment Committees.

Audit & Risk Management Committee

The role of the Audit & Risk Management Committee is to oversee the Group's financial reporting, setting the risk parameters of the Group and overseeing the Group's systems of internal control and its risk management framework.

The members of the Audit & Risk Management Committee are Mr. Adrian Gurgone (Chair), Dato' Sri Kamaruddin, Mr David Somerville and Mr Tee Lip Jen.

Directors' report

Investment Committee

The role of the Investment Committee is to assist the Board in fulfilling its responsibilities in evaluating investment opportunities. In fulfilling this purpose, the Committee will review the investment opportunities and make recommendations to the Board.

The members of the Investment Committee are Mr David Somerville (Chair), Mr Lai Ah Hong, Mr Tee Lip Jen and Dato' Sri Tee Lip Sin.

Remuneration & Nomination Committee

The CI Resources Board is responsible for ensuring that the remuneration arrangements for the Group are aligned with the overall business strategy and shareholders' interests. The role of the Remuneration & Nomination Committee is to advise the Board on Director and Executive remuneration. The Committee makes recommendations to the Board on Executive remuneration arrangements, including where appropriate, all awards under the Long Term Incentive (LTI) plan and approved the targets and level of the Short Term Incentive (STI) pool.

The members of the Remuneration & Nomination Committee are Dato' Sri Kamaruddin (Chair), Mr. Adrian Gurgone and Mr Tee Lip Jen.

A copy of the charter of the Audit & Risk Management, Remuneration & Nomination and Investment Committee are available on the corporate governance page on the Company's website @ www.ciresources.com.au.

Rounding

The amounts contained in this report and in the financial report have been rounded to the nearest $1,000 (where rounding is applicable) under the option available to the Company under the ASIC Corporations (Rounding in Financial/Directors' Reports) Instrument 2016/191. The Company is an entity to which the instrument applies.

Non-audit services

No non-audit services were provided by the Auditors during the year ended 30 June 2020. The Board has considered the Audit & Risk Management Committee's advice, that any non-audit services provided by Ernst & Young, by the auditor is compatible with, and did not compromise, the general standard of auditor independence imposed by the Corporations Act 2001 for the following reasons:

• any non-audit services provided do not involve reviewing or auditing the auditor's own work or acting in a management or decision-making capacity for the company; and
• any non-audit services are subject to the corporate governance procedures and policies adopted by the company and have been reviewed by the Audit & Risk Management Committee to ensure they do not affect the integrity and objectivity of the auditor; and
• there is no reason to question the veracity of the auditor's independence declaration.

Auditors' Independence Declaration

A copy of the auditors' independence declaration as required under section 307C of the Corporations Act 2001 is set out on page 20.

Auditor

Ernst & Young continues in office in accordance with section 327 of the Corporations Act 2001.

Directors' report

Remuneration report (Audited)

The remuneration report is set out under the following main headings:

• A Principles used to determine the nature and amount of remuneration
• B Details of remuneration
• C Service agreements
• D Share-based compensation
• E Additional information

The information in this section has been audited as required by section 308(3c) of the Corporations Act 2001.

A Principles used to determine the nature and amount of remuneration

In order to maintain and attract directors to facilitate the efficient and effective management of the Consolidated Entity's operations, the board established a Remuneration and Nominations Committee on 9 March 2015 which reviews the remuneration of directors on an annual basis and makes recommendations to the Board.

Aside from the discretionary bonus disclosed in the remuneration report, no other link exists, at this stage in the Company's development, between financial performance, shareholder wealth and the remuneration of Directors and Key Management Personnel.

Non-executive directors

Fees and payments to non-executive directors reflect the demands which are made on, and the responsibilities of the directors. Non-executive directors' fees and payments are reviewed annually by the Remuneration & Nominations Committee and the committee makes recommendations to the Board. The Board also ensures nonexecutive directors' fees and payments are appropriate and in line with the market as determined by comparison with companies of a similar size. The Chairman's fees are determined independently to the fees of non-executive directors based on comparative roles in the external market. The Chairman is not present at any discussions relating to determination of his own remuneration.

Directors' fees

The current base remuneration was last reviewed on 29 June 2020. Directors' remuneration is inclusive of committee fees.

Non-executive directors' fees are determined within an aggregate directors' fee pool limit, which is periodically recommended for approval by shareholders. The total maximum currently stands at $880,000.

Remuneration packages may contain the following key elements:

• Director's fees
• Consultancy fees
• Post-employment benefits superannuation
• Performance bonuses
• Other non-cash benefits

The directors are also remunerated for any additional services they render the Company and such services are carried out under normal commercial terms and conditions. Engagement and payment for such services are approved by the other directors with no interest in the engagement of such services.

Executive remuneration

The objective of the Consolidated Entity's executive reward framework is to ensure reward for performance is competitive and appropriate for the results delivered. The framework aligns executive reward with achievement of strategic objectives and the creation of value for shareholders, and conforms with market best practice for delivery of reward.

Directors' report

Remuneration report (Audited) (continued)

The Board ensures that executive reward satisfies the following key criteria for good reward governance practices:

• competitiveness and reasonableness
• acceptability to shareholders
• performance linkage / alignment of executive compensation
• transparency
• capital management.

The Consolidated Entity has structured an executive remuneration framework that is market competitive and complimentary to the reward strategy of the organisation.

Alignment to shareholders' interests:

• focuses on exploration success as the creation of shareholder value and returns
• attracts and retains high calibre executives.

Alignment to program participants' interests:

• rewards capability and experience
• reflects competitive reward for contribution to growth in shareholder wealth
• provides a clear structure for earning rewards
• provides recognition for contribution.

The executive pay and reward framework has the following components:

• Fixed remuneration (base salary, superannuation & other non-monetary benefits)
• Variable Remuneration (incentives through participation in bonus arrangements)

The combination of these components comprises the executive's total remuneration.

Fixed Remuneration

• Base salary

Structured as a total employment cost package which may be delivered as a combination of cash and prescribed non-financial benefits at the executives' discretion.

Executives are offered a competitive base pay that comprises the fixed component of pay and rewards. Base pay for senior executives is reviewed annually to ensure the executive's pay is competitive with the market.

• Non-monetary benefits

Executives may receive benefits including memberships, car allowances and reasonable entertainment.

• Retirement benefits

Directors and employees are permitted to nominate a superannuation fund of their choice to receive superannuation contributions.

Retirement allowances for directors

There is no provision for retirement allowances for non-executive directors.

Variable Remuneration

Executives are paid a bonus subsequent to the financial year end based on the profit of the Group for the previous year.

Directors' report

Remuneration report (Audited) (continued)

B Details of remuneration

During the financial year to 30 June 2020, the directors and key management personnel of the Company were:

Directors of CI Resources Limited Mr David Somerville – Non-executive Chairman Mr Lai Ah Hong – Managing Director Dato' Sri Tee Lip Sin – Executive director Mr Tee Lip Jen – Non-executive director Mr Adrian Gurgone – Non-executive director Dato' Sri Kamaruddin bin Mohammed – Non-executive director Mr Clive Brown – Executive director (Resigned 31 December 2019)

Other key management personnel of CI Resources Limited Ms Elizabeth Lee – Company Secretary Mr Darren Gold – Group Chief Financial Officer

Details of the remuneration of the directors and the key management personnel of the Group are set out in the following tables.

2020				Post-employment
	Short-term benefits			benefits
	Cash fees		Non
	and		monetary			Total
Name	consulting	Bonus	benefits	Superannuation	Total	Performance
	$	$	$	$	$	related
Directors of CI Resources Limited
Mr David Somerville	154,843	-	10,000	17,807	182,650	-
Dato' Sri Tee Lip Sin	204,649	10,000	-	-	214,649	4.7%
Mr Tee Lip Jen	114,000	-	-	-	114,000	-
Mr Adrian Gurgone	112,242	-	-	12,908	125,150	-
Dato' Sri Kamaruddin bin Mohammed	136,300	-	-	-	136,300	-
Lai Ah Hong	619,462	110,000	70,169	83,888	883,519	12.5%
Clive Brown *	70,487	-	-	24,804	95,291	-
Other key management personnel
Cosec & Bookkeeping Contract	48,679	-	-	-	48,679	-
Services Pty Ltd (Elizabeth Lee –
Company Secretary)
Darren Gold	308,750	50,000	15,339	41,256	415,345	12.0%
Total	1,769,412	170,000	95,508	180,663	2,215,583	-

* Resigned on 31 December 2019

2019				Post-employment
	Short-term benefits			benefits
	Cash fees		Non
	and		monetary			Total
Name	consulting	Bonus	benefits	Superannuation	Total	Performance
	$	$	$	$	$	related
Directors of CI Resources Limited
Mr David Somerville	162,466	-	10,000	18,684	191,150	-
Dato' Sri Tee Lip Sin	204,708	-	-	-	204,708	-
Mr Tee Lip Jen	120,000	-	-	-	120,000	-
Mr Adrian Gurgone	115,387	-	-	15,763	131,150	-
Dato' Sri Kamaruddin bin Mohammed	142,300	-	-	-	142,300	-
Lai Ah Hong	634,348	255,005	88,105	102,276	1,079,734	23.6%
Clive Brown	165,208	-	3,270	24,792	193,270	-
Other key management personnelCosec & Bookkeeping ContractServices Pty Ltd (Elizabeth Lee –Company Secretary)Darren Gold	52,680311,947	-100,000	-18,344	-47,374	52,680477,665	-20.9%
Total	1,909,044	355,005	119,719	208,889	2,592,657	-

Directors' report

Remuneration report (Audited) (continued)

Options provided as remuneration and shares issued on exercise of such options There were no options issued to key management personnel for the financial years ended 30 June 2020 and 30 June 2019.

Option holdings

No key management personnel held options over ordinary shares in the Group during the current year ended 30 June 2020 (2019: Nil)

Shareholdings

The numbers of shares in the Company held during the financial year by each director and the key management personnel of the consolidated entity, including their personally related parties, are set out below. There were no shares granted during the reporting period as compensation.

2020Name	Balance atthe start ofthe period	Changesduring theperiod	Balance atthe end of theperiod
Directors of CI Resources Limited
Mr David Somerville	-	-	-
Dato' Sri Tee Lip Sin	34,414,174	-	34,414,174
Mr Tee Lip Jen	1,229,150	-	1,229,150
Mr Adrian Gurgone	-	-	-
Dato' Sri Kamaruddin bin Mohammed	150,000	-	150,000
Mr Lai Ah Hong	4,235,442	-	4,235,442
Mr Clive Brown	-	-	-
Other key management personnel
Ms Elizabeth Lee	-	-	-
Mr Darren Gold	-	-	-

2019Name	Balance atthe start ofthe period	Changesduring theperiod	Balance atthe end of theperiod
Directors of CI Resources Limited
Mr David Somerville	-	-	-
Dato' Sri Tee Lip Sin	34,379,968	34,206	34,414,174
Mr Tee Lip Jen	1,229,150	-	1,229,150
Mr Adrian Gurgone	-	-	-
Dato' Sri Kamaruddin bin Mohammed	150,000	-	150,000
Mr Lai Ah Hong	4,235,442	-	4,235,442
Mr Clive Brown	-	-	-
Other key management personnel
Ms Elizabeth Lee	-	-	-
Mr Darren Gold	-	-	-

Remuneration and other terms of employment for the directors are not formalised in service agreements.

The agreement for the Company Secretary of CI Resources Limited provides for the provision of consulting fees.

Major provisions of the agreements relating to remuneration are set out below:

Cosec & Bookkeeping Contract Services Pty Ltd - Company Secretary

• Term of agreement Ongoing with 90 days notice by either party to terminate the agreement.
• Base fee of $36,000 per annum for the provision of company secretarial services and an hourly rate of $150 per hour for additional work outside the scope of this contract.

Directors' report

Remuneration report (Audited) (continued)

C Share-based compensation

There were no share based payments to directors or other key management personnel during this or the previous financial year.

D Additional information

Loans to directors and executives There are no loans to directors or executives.

Other transactions with key management personnel

• Mr Lai Ah Hong is the owner of property MQ 717 on Christmas Island leased to Phosphate Resources Ltd for three years ending 10 April 2021. Mr Lai Ah Hong received a total rent of $26,000 during the year (2019: $27,607).
• Mr Lai Ah Hong is the owner of property 86 Unit B, Block 790 Lam Lok Road, Drumsite, Christmas Island leased to CI Maintenance Services Pty Ltd. Mr Lai Ah Hong received a total rent of $24,398 during the year (2019: $24,206).
• Mr Adrian Gurgone is the director of Ethical Accounts. Ethical Accounts provided consultancy services for the Group totaling $46,200 (2019: $Nil) during the year.

Shares under option

There are no unissued ordinary shares of CI Resources Limited under option at the date of this report.

- End of Audited Remuneration Report –

Proceedings on behalf of the Company

No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings on behalf of the Company, or to intervene in any proceedings to which the Company is a party, for the purpose of taking responsibility on behalf of the Company for all or part of those proceedings.

No proceedings have been brought or intervened in on behalf of the Company with leave of the Court under section 237 of the Corporations Act 2001.

Signed in accordance with a resolution of the directors.

David Somerville Lai Ah Hong

Chairman Managing Director

Perth, Western Australia 28 August 2020

AUDITORS INDEPENDENCE DECLARATION

Ernst & Young 11 Mounts Bay Road Perth WA 6000 Australia GPO Box M939 Perth WA 6843 Tel: +61 8 9429 2222 Fax: +61 8 9429 2436 ey.com/au

Auditor's Independence Declaration to the Directors of CI Resources Limited

As lead auditor for the audit of the financial report of CI Resources Limited for the financial year ended 30 June 2020, I declare to the best of my knowledge and belief, there have been:

• a) no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the audit*;* and
• b) no contraventions of any applicable code of professional conduct in relation to the audit.

This declaration is in respect of CI Resources Limited and the entities it controlled during the financial year.

Ernst & Young

Darryn Hall Partner 28 August 2020

A member firm of Ernst & Young Global Limited

Liability limited by a scheme approved under Professional Standards Legislation

Corporate Governance Disclosures

CI Resources Limited (CI Resources or the Company) has interests in phosphate assets in Australia and palm oil plantations in Malaysia. The Company is committed to protecting and enhancing shareholder value and adopting best practice governance policies and practices.

The Corporate Governance Statement outlines the main Corporate Governance practices that were in place throughout the financial year, which comply with the ASX Corporate Governance Principles and Recommendations released by the ASX Corporate Governance Council (fourth edition).

The following summarizes the eight recommended ASX Principles of Good Governance and the Company's policies and procedures against each of the principles. Where a recommendation has not been followed, this is clearly stated along with an explanation for the departure.

Principle 1 – Lay solid foundations for management and oversight

The Board currently consists of six Directors of whom, three are non-independent directors. The Board and the Company act within a statutory framework – principally the Corporations Act and also the Constitution of the Company. Subject to this statutory framework, the Board has the authority and the responsibility to perform the functions, determine the policies and control the affairs of CI Resources Limited in accordance with the Board Charter published on the Company website.

The Directors are aware of their responsibilities and obligations to protect shareholder's funds. Due care is taken to explain both the positive and negative aspects in all reports to highlight the inherent risks involved in the phosphate and palm oil plantations industry. The Board must ensure that the Company acts in accordance with prudent commercial principles and satisfies shareholders – consistent with maximising the Company's long term value.

The Board of Directors determines the strategic direction of the Company by regularly monitoring and evaluating the performance and status of each of the Company's projects and activities. A formal evaluation of Board members took place in November 2019.

To assist it in carrying out its responsibilities, the Board had three Board Committees each chaired by an Independent Director as at 30 June 2020:

• Audit & Risk Management Committee;
• Remuneration & Nomination Committee; and
• Investment Committee

The Board has delegated the day to day management of CI Resources and its business to the Managing Director. The Managing Director is supported in this function by Senior Executives with responsibilities as delegated by the Managing Director. Each of the Senior Executive has a formal job description and employment contract which describes their term of office, duties, rights and responsibilities and entitlements on termination. Formal performance evaluation of Senior Executives is conducted annually.

The Company Secretary is accountable directly to the Board, through the Chairman, on all matters to do with the proper functioning of the Board.

A copy of the Committees Charters can be found on the CI Resources website (www.ciresources.com.au)

Diversity Policy

CI Resources Limited recognises the value contributed to the organisation by employing people with varying skills, cultural backgrounds, ethnicity and experience. The Company believes its diverse workforce is the key to its continued growth, improved productivity and performance.

We actively value and embrace the diversity of our employees and are committed to creating an inclusive workplace where everyone is treated equally and fairly, and where discrimination, harassment and inequity are not tolerated.

Corporate Governance Disclosures

68% of the Company's employees are from Chinese and Malay descent.

As at 30 June 2020 the Company has 24% females in employment and 14% of the Board and Company Secretary are female. 24% of the Group's managers are female.

A copy of the Diversity Policy can be found on the CI Resources website (www.ciresources.com.au)

Principle 2 – Structure the board to be effective and add value

The Board comprises of a Non-executive Independent Chairman, three Executive Directors and two Non-Executive Directors (of whom 1 are Independent).

The Board is satisfied that the current mix of independent and non- independent Directors is in the best interests of the Company and ensures that the Company has available the requisite levels of skill and experience in both the phosphate and palm oil sectors.

Full details of the Company's Board of Directors and their relevant experience and skills are detailed within the Directors' Report. The Company's Constitution requires that one third of the members of the Board retire by rotation each year but they are eligible for re-election.

Any new Director appointed holds office only until the next general meeting and is then eligible for re-election.

The Board will ensure that any such person to be appointed as a Director possesses an appropriate level of qualifications, expertise and experience. The Remuneration and Nomination Committee review the board composition annually to ensure it continues to have the right balance of skills, experience, independence and knowledge to discharge its responsibilities.

Under the Remuneration and Nomination Committee Charter, the Committee must have at least three members who are non-executive directors with a majority of whom are independent directors. The Chair of the Board must not be the Chair of the Committee.

Key terms and conditions relating to the appointment of non-executive directors are set out in a formal letter of appointment.

Principle 3 – Instil a culture of acting lawfully, ethically and responsibly

The Board place great emphasis on ethics and integrity in all its business dealings and the Board considers the business practices and ethics exercised by individual board members and key executives to be of the highest standards.

The Board, being committed to the highest standards of ethical business conduct has adopted a formal Code of Conduct to guide executives, management and staff in carrying out their duties and responsibilities. The Code is subject to ongoing review to ensure that the Company's standards of behaviour and corporate culture reflect best practice in corporate governance. The Code is based on the following key principles:

• acting with honesty and integrity
• abiding by laws and regulations
• respecting confidentiality and handling information in a proper manner
• maintaining the highest standards of professional behaviour
• avoiding conflicts of interest
• striving to be a good corporate citizen and to achieve community respect.

CI Resources Limited also has a number of specific policies on various legal and ethical issues. These policies are designed to foster and maintain ethical business conduct within the Company, and govern such things as workplace and human resources practices, handling of confidential information, insider trading, risk management

Corporate Governance Disclosures

and legal compliance.

A formal Securities Trading Policy has been adopted, lodged and released to the market. This is to ensure compliance with the "insider trading" provisions of the Corporations Act by directors and executive staff who may be in possession of sensitive information concerning the Company's affairs, prior to release to the market.

In addition, the Board has guidelines dealing with disclosure of interests by Directors in participating and voting at Board meetings where any such interests are discussed. In accordance with the Corporations Act, any Director with a material personal interest in a matter being considered by the Board must not be present when the matter is being considered, and may not vote on the matter.

A copy of the Corporate Code of Conduct and the Securities Trading Policy can be found on the CI Resources website.

Principle 4 – Safeguard integrity in corporate reports

The Board has established an Audit & Risk Management Committee (ARC). The ARC's primary function is to ensure that an effective internal control framework exists within the Company. This includes internal controls to deal with both the effectiveness and efficiency of significant business processes, including the safeguarding of assets, the maintenance of proper accounting records and the reliability of financial information.

The ARC is responsible for the appointment of the external auditors of the Company, and will time to time review the scope, performance and fees of those external auditors. The Company has retained Ernst & Young as its auditors. The Ernst & Young partner managing the external audit will attend the 2020 AGM and be available to respond to shareholder's questions relating to external audit.

The ARC is responsible for engaging independent audit consultants to carry out an internal audit program across designated operational functions.

Under the Audit & Risk Management Committee Charter, the Committee must have at least three members, who are non-executive directors with a majority of independent directors. The Committee members must have basic knowledge of finance and accounting practices. The Chair of the Board must not be the Chair of the Committee.

A copy of the Audit & Risk Management Charter can be found on the CI Resources website. (www.ciresources.com.au)

Principle 5 – Make timely and balanced disclosure

The Company complied with all disclosure requirements to ensure that it manages the disclosure of price sensitive information effectively and in accordance with the requirements as set out by regulatory bodies. All market disclosures are approved by the Board.

The Chairman and Company Secretary are authorised to communicate with shareholders and the market in relation to Board approved disclosures. The Chairman and Company Secretary are responsible for ensuring compliance with the continuous disclosure to the Australian Securities Exchange, analysts, broker, shareholders, the media and the public.

A copy of the Continuous Disclosure Policy can be found on the CI Resources website. (www.ciresources.com.au)

Principle 6 – Respect the rights of security holders

The Company has a positive strategy to communicate with shareholders and actively promote shareholder involvement in the Company. It aims to continue to increase and improve the information available to shareholders on its website. All Company announcements, presentations to analysts and other significant briefings are posted on the Company's website after release to the Australian Securities Exchange. (www.ciresources.com.au)

Corporate Governance Disclosures

In addition the Company encourages shareholders to register with the Share Registry to receive communications electronically.

CI Resources encourages and welcomes shareholder participation at general meetings with the Annual General Meeting being the major forum for shareholders to ask questions about the performance of the Company and to provide feedback.

Principle 7 – Recognise and manage risk

Please refer to details of the Audit & Risk Management Committee under Principle 4.

The Audit & Risk Management Committee oversees the establishment, implementation and ongoing review of the Company's risk management and internal control system.

The Christmas Island operations are carried in an environmentally sensitive area and accordingly operations are carefully monitored to ensure compliance with approved Environmental Management Plans developed in accordance with legislative requirements.

The Company maintains and reviews annually comprehensive Public Liability and "All Risks" insurance policies for all its business and operational activities.

The Board has received assurance from the Managing Director and the Group Chief Financial Officer that, the directors' declaration provided in accordance with section 295A of the Corporations Act, is founded on a sound system of risk management and internal control and that the system is operating effectively in all material respects in relation to financial reporting risks.

Principle 8 – Remunerate fairly and responsibly

The Board has established the Remuneration & Nomination Committee. The Committee operates under a formal Remuneration & Investment Committee Charter which is published on the Company's website. The role of the Committee is to review and assist the Board to determine and review compensation arrangements for the Directors, the Managing Director, and Senior Executives. The Directors fees are determined by the Company in general meetings and other consulting services are remunerated at levels agreed by the Board of Directors. Access is available to the Company's auditors and senior managers, and the ability to consult independent experts when necessary.

In relation to non-executive directors, there are presently no schemes for termination or retirement benefits, other than statutory superannuation.

The Board recognises that the interests of all stakeholders will be best served when the Company, its directors and staff adhere to highest standards of business ethics and comply with the law.

Other than disclosed above, during the Consolidated Entity's financial period the Company has complied with the ASX Principles and Recommendations.

CI Resources Limited

Financial report – For the financial year ended 30 June 2020

Contents	Page
Financial report
Consolidated Statement of Comprehensive Income	26
Consolidated Statement of Financial Position	27
Consolidated Statement of Changes in Equity	28
Consolidated Statement of Cash Flows	29
Notes to the financial statements	30
Directors' declaration	76
Independent audit report to the members	77

CI Resources Limited is a company limited by shares, incorporated and domiciled in Australia. Its registered office and principal place of business is:

6 Thorogood Street Burswood, Western Australia 6100

A description of the nature of the consolidated entity's operations and its principal activities is included in the directors' report, which is not part of this financial report.

The financial report was authorised for issue by the directors on 28 August 2020. The consolidated entity has the power to amend and reissue the financial report.

Through the use of the internet, we have ensured that our corporate reporting is timely, complete and available globally at minimum cost to the consolidated entity. All press releases, financial reports and other information are available on our website: www.ciresources.com.au

For queries in relation to our reporting please call +61 8 6250 4900 or e-mail info@ciresources.com.au

Consolidated Statement of Comprehensive Income For the financial year ended 30 June 2020

	Notes	2020$'000s	2019$'000s
Revenue	4(a)	125,516	135,772
Cost of sales	4(b)	(108,249)	(110,377)
Gross profit		17,267	25,395
Other income	4(c)	867	1,119
Other expenses	4(d)	(12,946)	(12,608)
Finance costs	4(e)	(1,947)	(645)
Impairment of non-financial asset	13,14	(3,101)	-
Change in fair value of biological asset	15	112	(73)
Share of profit/(loss) in joint ventures	16	(37)	-
Profit before income tax		215	13,188
Income tax expense	5	(183)	(4,517)
Profit for the period after income tax		32	8,671
Other comprehensive (loss)/income:
Items that may be reclassified subsequently to profit or loss:
Net currency translation differences		(1,134)	1,425
Total other comprehensive (loss)/income that may bereclassified subsequently to profit or loss		(1,134)	1,425
Items that will not be reclassified to profit or loss insubsequent periods:
Net gain/(loss) on equity instruments designated at fairvalue through other comprehensive income		(2,260)	(3,951)
Total other comprehensive income that cannot bereclassified subsequently to profit or loss		(2,260)	(3,951)
Total comprehensive (loss)/income for the year		(3,362)	6,145
Profit is attributable to:
Members of CI Resources Limited		32	8,671
		32	8,671
Total comprehensive (loss)/income for the year isattributable to:
Members of CI Resources Limited		(3,362)	6,145
		(3,362)	6,145
Earnings per share for profit attributable to the ordinaryequity holders of the parent:
Basic earnings per share	6	0.03 cents	7.50 cents
Diluted earnings per share	6	0.03 cents	7.50 cents

Consolidated Statement of Financial Position As at 30 June 2020

		2020	2019
	Notes	$'000s	$'000s
Current assets
Cash and cash equivalents	7	44,149	39,726
Term deposits		6,877	7,331
Trade and other receivables	8	28,418	28,586
Inventories	9	32,490	36,233
Biological asset	15(a)	231	125
Other financial assets	30	1,363	48
Prepayments		835	102
Income tax receivable		546	3
Total current assets		114,909	112,154
Non-current assets
Other financial assets	10	28,410	32,350
Right of use assets	11	916	-
Property, plant & equipment	12	85,843	85,235
Goodwill	13	4,057	7,158
Biological assets	15(b)	5,391	6,153
Investment in joint ventures	16	1,315	-
Deferred tax assets	5	9,161	9,952
Total non-current assets		135,093	140,848
Total assets		250,002	253,002
Current liabilities
Trade and other payables	18	11,101	13,289
Interest bearing loans and borrowings	19	8,885	1,417
Provisions	20	3,802	5,019
Total current liabilities		23,788	19,725
Non-current liabilities
Interest bearing loans and borrowings	19	10,795	11,853
Deferred tax liabilities	5	5,465	7,416
Provisions	20	19,744	18,702
Total non-current liabilities		36,004	37,971
Total liabilities		59,792	57,696
Net assets		190,210	195,306
Equity
Contributed equity	21	72,160	72,160
Reserves	22	5,609	9,003
Retained earnings	23	112,441	114,143
Total equity		190,210	195,306

Consolidated Statements of Changes in Equity For the financial year ended 30 June 2020

		ContributedEquity$'000s	ForeignCurrencyTranslationReserve$'000s	FairValueReserve$'000s	Discount onAcquisitionof NCI$'000s	RetainedEarnings$'000s	Total$'000s
1 July 2019	Notes	72,160	4,455	(3,951)	8,499	114,143	195,306
Profit for the year		-	-	-	-	32	32
Other comprehensiveincome/(loss) for the year	22	-	(1,134)	(2,260)	-	-	(3,394)
Total comprehensiveincome/(loss) for the year		-	(1,134)	(2,260)	-	32	(3,362)
Transactions with owners intheir capacity as owners:
Dividends paid	23	-	-	-	-	(1,734)	(1,734)
30 June 2020		72,160	3,321	(6,211)	8,499	112,441	190,210
1 July 2018		72,160	3,030	-	8,499	112,985	196,674
Profit for the year		-	-	-	-	8,671	8,671
Other comprehensiveincome for the year	22	-	1,425	(3,951)	-	-	(2,526)
Total comprehensiveincome for the year		-	1,425	(3,951)	-	8,671	6,145
Transactions with owners intheir capacity as owners:
Dividends paid	23	-	-	-	-	(7,513)	(7,513)
30 June 2019		72,160	4,455	(3,951)	8,499	114,143	195,306

Consolidated Statement of Cash Flows For the financial year ended 30 June 2020

	Note
		2020$'000s	2019$'000s
Cash flows from operating activities
Receipts from customers		125,006	150,380
Payments to suppliers and employees (inclusive of goods andservices tax)		(113,454)	(130,084)
Interest received		678	952
Interest paid on lease liability		(25)	-
Borrowing costs		(794)	(219)
Income taxes paid		(2,216)	(4,090)
Net cash flows from operating activities	29	9,195	16,939
Cash flows from investing activities
Movement in term deposits		1,598	2,139
Purchase of financial instruments		(1,153)	(27,542)
Proceeds from sale of property, plant and equipment		168	25
Purchase of property, plant and equipment		(9,059)	(9,603)
Net cash flows used in investing activities		(8,446)	(34,981)
Cash flows from financing activities
Repayment of borrowings		(12,958)	(488)
Proceeds of borrowings		18,636	13,773
Payment of principal portion of lease liability		(399)	-
Dividends paid		(1,734)	(7,513)
Net cash flows from financing activities		3,545	5,772
Net increase/(decrease) in cash and cash equivalents held		4,294	(12,270)
Cash and cash equivalents at the beginning of the financial year		39,726	51,243
Impact of foreign exchange		129	753
Cash and cash equivalents at the end of the financial year	7	44,149	39,726

Notes to the financial statements For the year ended 30 June 2020

1. Corporate Information

This financial report of CI Resources Limited ("Company") for the year ended 30 June 2020 comprises the Company and its subsidiaries ("Group"). The financial report of CI Resources Limited for the year ended 30 June 2020 was authorised for issue in accordance with a resolution of the directors on 28 August 2020.

The separate financial statements of the parent entity, CI Resources Limited, have not been presented within this financial report as permitted by the Corporations Act 2001.

CI Resources Limited is a for profit company limited by shares incorporated in Australia whose shares are publicly traded on the Australian Securities Exchange.

2. Summary of Significant Accounting Policies

The principal accounting policies adopted in the preparation of the financial report are set out below. These policies have been consistently applied to the financial year ended 30 June 2020, unless otherwise stated.

Basis of preparation

The financial report is a general-purpose financial report which has been prepared in accordance with the requirements of the Corporations Act 2001, Australian Accounting Standards and other authoritative pronouncements of the Australian Accounting Standards Board ("AASB"). The financial report has been prepared on a historical cost basis except for biological assets and certain financial instruments, which have been measured at fair value.

The financial report is presented in Australian dollars and all values are rounded to the nearest thousand dollars ($'000), unless otherwise stated under the option available to the Company under ASIC Corporations (Rounding in Financial/Directors' Reports) Instrument 2016/191. The Company is an entity to which the legislative instrument applies.

The financial report covers the Consolidated Entity of CI Resources Limited and its controlled entities and has been prepared on an accruals basis.

(a) Compliance with IFRS

The financial report complies with Australian Accounting Standards and International Financial Reporting Standards ("IFRSs") as issued by the International Accounting Standards Board.

(b) New accounting standards and interpretations

(i) Changes in accounting policy

The accounting policies adopted in the preparation of the year-end report are consistent with those followed in the preparation of the Group's annual consolidated financial statements for the year ended 30 June 2019, except for the adoption of new and amended Accounting Standards and Interpretations effective 1 July 2019 and adopted for the current financial year ended 30 June 2020.

The Group applies, for the first time, AASB 16 Leases ("AASB 16") and AASB Interpretation 23 Uncertainty over Income Tax Treatments ("AASB Interpretation 23"). The impact of adopting these are discussed below. Several other amendments and interpretations apply for the first time in 2020, but do not have an impact on the consolidated financial statements of the Group and hence have not been disclosed.

Notes to the financial statements For the year ended 30 June 2020

AASB 16

AASB 16 was issued in January 2016 and it replaces AASB 117 Leases ("AASB 117"), AASB Interpretation 4 Determining whether an Arrangement contains a Lease ("AASB Interpretation 4"), AASB Interpretation-115 Operating Leases-Incentives and AASB Interpretation 127 Evaluating the Substance of Transactions Involving the Legal Form of a Lease. AASB 16 sets out the principles for the recognition, measurement, presentation and disclosure of leases and requires lessees to account for all leases under a single on-balance sheet model similar to the accounting for finance leases under AASB 117.

The standard includes two recognition exemptions for lessees – leases of 'low-value' assets and short-term leases (i.e., leases with a lease term of 12 months or less). At the commencement date of a lease, a lessee will recognise a liability to make lease payments (i.e., the lease liability) and an asset representing the right to use the underlying asset during the lease term (i.e., the right-of-use asset). Lessees will be required to separately recognise the interest expense on the lease liability and the depreciation expense on the right-of-use asset.

Lessees will be also required to remeasure the lease liability upon the occurrence of certain events (e.g., a change in the lease term, a change in future lease payments resulting from a change in an index or rate used to determine those payments). The lessee will generally recognise the amount of the re-measurement of the lease liability as an adjustment to the right-of-use asset.

The impacts of this standard are as follows:

Effective 1 July 2019, the Group has adopted AASB 16 using the modified retrospective approach measuring right-of-use assets at an amount equal to the lease liabilities, and elected to apply the practical expedients in AASB 16 for short-term leases and leases for which the underlying asset is of low value., under which the cumulative effect of initial application is recognised in retained earnings at 1 July 2019, and as such the comparatives have not been restated. There was no impact of adoption on opening retained profits as at 1 July 2019.

The Group used the exemptions proposed by the standard on lease contracts for which the lease terms ends within 12 months as of the date of initial application, and lease contracts for which the underlying asset is of low value.

Before the adoption of AASB 16, the Group classified each of its leases (as lessee) at the inception date as either a finance lease or operating lease. For operating leases, the leased property was not capitalised and the lease payments were recognised as an expense in profit or loss on a straight-line basis.

The effect of adopting AASB 16 as at 1 July 2019 is set out below:

	1 July 2019$'000	30 June 2020$'000
Assets
Non-current assets – Right-of-use assets	534	916
Liabilities
Current liabilities - lease liabilities	245	441
Non-current liabilities - lease liabilities	289	481

The lease liability as at 1 July 2019 can be reconciled to the operating lease commitments as of 30 June 2019, as follows:

	$'000
Operating lease commitments at 30 June 2019	818
Commitments relating to unrecognised short term lease contracts	(224)
Present value discounting	(60)
Lease liabilities at 1 July 2019	534

Principal repayments on lease liabilities of $399k were presented as financing cash flows in the consolidated statement of cash flows. Interest repayments on lease liabilities of $25k for the year ended 30 June 2020 were presented as operating cash flows in the consolidated statement of cash flows.

The weighted average incremental borrowing rate applied to lease liabilities recognised in the statement of financial position at the date of initial application was 3.9%.

Notes to the financial statements For the year ended 30 June 2020

AASB Interpretation 23

The Interpretation addresses the accounting for income taxes when tax treatments involve uncertainty that affects the application of AASB 112 Income Taxes ("AASB 112") and does not apply to taxes or levies outside the scope of AASB 112, nor does it specifically include requirements relating to interest and penalties associated with uncertain tax treatments. The Interpretation specifically addresses the following:

• Whether an entity considers uncertain tax treatments separately
• The assumptions an entity makes about the examination of tax treatments by taxation authorities
• How an entity determines taxable profit (tax loss), tax bases, unused tax losses, unused tax credits and tax rates
• How an entity considers changes in facts and circumstances

An entity has to determine whether to consider each uncertain tax treatment separately or together with one or more other uncertain tax treatments. There was no impact on adopting AASB Interpretation 23.

ii) New and amended Accounting Standards and Interpretations issued but not yet effective

Australian Accounting Standards and interpretations that have recently been issued or amended but are not yet effective have not been adopted for the annual reporting period ended 30 June 2020 are outlined below:

AASB 2018-6 Amendments to AASs – Definition of a Business

Effective for annual reporting periods beginning on or after 1 January 2020

The definition of a business helps entities to distinguish business combinations from asset purchases. Business combinations are accounted for using the acquisition method, which, among other things, may give rise to goodwill. Accounting treatments for other types of transactions may also be affected, depending on whether the transaction involves a business (e.g., A loss of control transaction where a retained interest is accounted for using the equity method).

With the aim of helping companies determine whether an acquired set of activities and assets is a business, the amendments to AASB 3:

• Clarify the minimum requirements for a business to exist
• Remove the assessment of whether market participants are capable of replacing missing elements of a business
• Provide guidance to help entities assess whether an acquired process is substantive
• Narrow the definitions of a business and of outputs
• Introduce an optional fair value concentration test to identify a business

The amendment is not expected to have a material impact on the Group.

AASB 2014-10 Amendments to AASs – Sale or Contribution of Assets between an Investor and its Associate or Joint Venture

Effective for annual reporting periods beginning on or after 1 January 2022

The amendments to AASB 10 Consolidated Financial Statements and AASB 128 clarify that a full gain or loss is recognised when a transfer to an associate or joint venture involves a business as defined in AASB 3. Any gain or loss resulting from the sale or contribution of assets that does not constitute a business, however, is recognised only to the extent of unrelated investors' interests in the associate or joint venture.

The amendment is not expected to have a material impact on the Group.

AASB 2020-4 Amendments to AASs – COVID-19-Related Rent Concessions

Effective for annual reporting periods beginning on or after 1 June 2020

Notes to the financial statements For the year ended 30 June 2020

Due to the COVID-19 pandemic, many lessors are granting rent concessions to lessees that impact lease payments. Rent concessions granted by a lessor can take many forms, including any combination of:

• A rent payment holiday;
• A reduction in lease payments for a period of time;
• A deferral of payments to a later date; or
• Other arrangements providing rent relief.

A concession might also include a change to the lease term.

From the lessee's perspective, a change in lease payments that was contemplated in the original terms and conditions of the lease would not be accounted for as a lease modification. For example, it might be treated as a variable lease payment, with the effect of the rent concession recognised in profit or loss. In contrast, accounting for a lease modification generally requires a lessee to remeasure the lease liability by discounting the revised lease payments using a new discount rate.

The IASB received feedback that assessing whether COVID-19 rent concessions are lease modifications could be challenging, compounding the IFRS 16 implementation work lessees have recently undertaken. Consequently, the Board amended IFRS 16, allowing lessees to not account for rent concessions as lease modifications, provided certain conditions are met.

The practical expedient applies only to rent concessions occurring as a direct consequence of the COVID-19 pandemic, and only if all of the following conditions are met:

• The change in lease payments results in revised consideration for the lease that is substantially the same as, or less than, the consideration for the lease immediately preceding the change;
• Any reduction in lease payments affects only payments originally due on or before 30 June 2021; and
• There is no substantive change to other terms and conditions of the lease.

Once elected, the practical expedient is required to be applied consistently to all lease contracts with similar characteristics and in similar circumstances.

The amendment to IFRS 16 is applied retrospectively with the cumulative effect of initial application recognised as an adjustment to the opening balance of retained earnings or other component of equity, as appropriate, at the beginning of the annual reporting period in which the lessee first applies the amendment. Earlier application is permitted.

The Board decided not to provide similar relief to lessors for several reasons, including the fact that IFRS 16 did not introduce significant changes to lessor accounting. The AASB issued the equivalent amendments to AASB 16 in June 2020.

The amendment is not expected to have a material impact on the Group.

AASB 2019-1 Amendments to AASs – References to the Conceptual Framework

Effective for annual reporting periods beginning on or after 1 January 2020

The Conceptual Framework for Financial Reporting (Conceptual Framework) describes the objective of, and the concepts for, general purpose financial reporting. The purpose of the Conceptual Framework is to:

• Assist in the development of accounting standards;
• Help preparers develop consistent accounting policies where there is no applicable standard in place; and
• Assist all stakeholders to understand the standards better.

The Conceptual Framework is not a standard, and none of the concepts override those in any standard or any requirements in a standard.

The application of the Conceptual Framework is at present limited to for-profit entities. On the other hand, the Framework for the Preparation and Presentation of Financial Statements (July 2004) (Framework) will continue to apply to not-for-profit entities.

Notes to the financial statements For the year ended 30 June 2020

The revised Conceptual Framework includes: a new chapter on measurement; guidance on reporting financial performance; improved definitions and guidance - in particular, the definitions of an asset and a liability; and clarifications in important areas, such as the roles of stewardship, prudence and measurement uncertainty in financial reporting.

Two exemptions to the application of the Conceptual Framework were provided:

• When developing accounting policies for regulatory account balances using the previous Framework.

Requiring entities to continue applying the previous Framework when developing or revising accounting policies for regulatory account balances prevents unhelpful and unnecessary disruption for both preparers and users. It avoids revising accounting policies for regulatory account balances twice within a short time frame – once for the revised Conceptual Framework and again when a revised standard on rate-regulated activities is issued.

• When applying AASB 3, such that entities must continue to apply the definitions of an asset and a liability (and supporting concepts) in the previous Framework, and not the definitions in the revised Conceptual Framework.

In some cases, applying the revised definitions might change which assets and liabilities qualify for recognition in a business combination. As a consequence, post-acquisition accounting required by other standards could lead to immediate derecognition of such assets or liabilities, causing 'day 2 gains or losses' to arise, which do not depict economic gains or losses. The IASB has since assessed how IFRS 3 Business Combinations can be updated for the revised definitions, without these unintended consequences

The amendment is not expected to have a material impact on the Group.

AASB 2020-3 Amendments to AASB 3 – Reference to the Conceptual Framework

Effective for annual reporting periods beginning on or after 1 January 2022

The IASB's assessment of applying the revised definitions of assets and liabilities in the Conceptual Framework to business combinations showed that the problem of day 2 gains or losses would be significant only for liabilities that an acquirer accounts for after the acquisition date by applying IAS 37 Provisions, Contingent Liabilities and Contingent Assets or IFRIC 21 Levies. The Board updated IFRS 3 in May 2020 for the revised definitions of an asset and a liability and excluded the application of the Conceptual Framework to liabilities and contingent liabilities within the scope of IAS 37 or IFRIC 21.

The AASB released the equivalent amendments to AASB 3 in June 2020.

The amendment is not expected to have a material impact on the Group.

AASB 2020-1 Amendments to AASs – Classification of Liabilities as Current or Non-current

Effective for annual reporting periods beginning on or after 1 January 2022

A liability is classified as current if the entity has no right at the end of the reporting period to defer settlement for at least 12 months after the reporting period. The AASB recently issued amendments to AASB 101 to clarify the requirements for classifying liabilities as current or non-current. Specifically:

• The amendments specify that the conditions which exist at the end of the reporting period are those which will be used to determine if a right to defer settlement of a liability exists.
• Management intention or expectation does not affect classification of liabilities.
• In cases where an instrument with a conversion option is classified as a liability, the transfer of equity instruments would constitute settlement of the liability for the purpose of classifying it as current or noncurrent.

The amendment is not expected to have a material impact on the Group.

Notes to the financial statements For the year ended 30 June 2020

AASB 2018-7 Amendments to AASs – Definition of Material

Effective for annual reporting periods beginning on or after 1 January 2020

The amendments align the definition of 'material' across AASB 101 Presentation of Financial Statements and AAS 108 Accounting Policies, Changes in Accounting Estimates and Errors, and clarify certain aspects of the definition. The new definition states that, 'Information is material if omitting, misstating or obscuring it could reasonably be expected to influence decisions that the primary users of general purpose financial statements make on the basis of those financial statements, which provide financial information about a specific reporting entity.'

The amendments clarify that materiality will depend on the nature or magnitude of information, or both. An entity will need to assess whether the information, either individually or in combination with other information, is material in the context of the financial statements.

The amendment is not expected to have a material impact on the Group.

AASB 2020-3 Amendments to AASB 116 – Property, Plant and Equipment: Proceeds before Intended Use

Effective for annual reporting periods beginning on or after 1 January 2022

Under AASB 116 Property, Plant and Equipment, net proceeds from selling items produced while constructing an item of property, plant and equipment are deducted from the cost of the asset. The IASB's research indicated practical diversity in interpreting this requirement. As a result, AASB 116 was amended to prohibit an entity from deducting from the cost of an item of property, plant and equipment, the proceeds from selling items produced before that asset is available for use. An entity is also required to measure production costs of the sold items by applying AASB 112 Inventories. Proceeds from selling any such items, and the cost of those items, are recognised in profit or loss in accordance with applicable standards.

These amendments are applied retrospectively, but only to items of property, plant and equipment that are 'ready to use' on or after the beginning of the earliest period presented in the financial statements in which the entity first applies the amendments — 'ready to use' meaning the asset is in the location and condition necessary to be capable of operating in the manner intended by management. Earlier application is permitted.

The amendment is not expected to have a material impact on the Group.

AASB 2020-3 Amendment to AASB 141 –Taxation in Fair Value Measurements (Part of Annual Improvements 2018–2020 Cycle)

Effective for annual reporting periods beginning on or after 1 January 2022

When using a present value technique to measure fair values of assets within the scope of AASB 141 Agriculture, taxation cash flows are not included. While AASB 13 Fair Value Measurement does not prescribe an entity to use a particular present value techniques to measure fair value, it requires assumptions about cash flows and discount rates to be internally consistent. Depending on facts and circumstances, an entity applying a present value technique might measure fair value by discounting after-tax cash flows using an after-tax discount rate or pre-tax cash flows at a pre-tax discount rate.

The AASB has removed from AASB 141 the requirement to exclude taxation cash flows when measuring fair value. Such removal aligns with the principles of fair value measurement in AASB 13.

The amendment is not expected to have a material impact on the Group.

Notes to the financial statements For the year ended 30 June 2020

AASB 2019-5 Amendments to AASs – Disclosure of the Effect of New IFRS Standards Not Yet Issued in Australia

Effective for annual reporting periods beginning on or after 1 January 2020

It is possible that an entity complying with Australian Accounting Standards cannot assert compliance with IFRS Standards if its reporting date falls between the issuance date of a new IFRS Standard and a later release date of an equivalent Australian Accounting Standard. To enable IFRS compliance assertion despite such delays, this standard amends AASB 1054 Australian Additional Disclosures to require disclosure of the possible impact of initial application of forthcoming IFRS Standards not yet adopted by the AASB, as specified in paragraphs 30 and 31 of AASB 108. Entities complying with Australian Accounting Standards can assert compliance with IFRS Standards by making this additional disclosure.

The amendment is not expected to have a material impact on the Group.

(c) Basis of consolidation

The consolidated financial statements comprise the financial statements of CI Resources Limited ("company" or "parent entity") as at 30 June 2020 and the results of its subsidiaries for the financial year then ended.

CI Resources Limited and its subsidiaries together are referred to in this financial report as the Group or Consolidated Entity. Subsidiaries are all those entities over which the Group has exposed, or has rights to variable return from its involvement in the subsidiary and has the ability to affect those return through its control.

Control is achieved when the Group is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Specifically, the Group controls an investee if, and only if, the Group has:

• Power over the investee (i.e. existing rights that give it the current ability to direct the relevant activities of the investee)
• Exposure, or rights, to variable returns from its involvement with the investee
• The ability to use its power over the investee to affect its returns. Generally, there is a presumption that a majority of voting rights results in control. To support this presumption and when the Group has less than a majority of the voting or similar rights of an investee, the Group considers all relevant facts and circumstances in assessing whether it has power over an investee, including:
  • o The contractual arrangement(s) with the other vote holders of the investee
  • o Rights arising from other contractual arrangements
  • o The Group's voting rights and potential voting rights

The Group re-assesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control. Consolidation of a subsidiary begins when the Group obtains control over the subsidiary and ceases when the Group loses control of the subsidiary. Assets, liabilities, income and expenses of a subsidiary acquired or disposed of during the year are included in the consolidated financial statements from the date the Group gains control until the date the Group ceases to control the subsidiary.

Profit or loss and each component of OCI are attributed to the equity holders of the parent of the Group and to the non-controlling interests, even if this results in the non-controlling interests having a deficit balance. The financial statements of the subsidiaries are prepared for the same reporting period as the parent company, using consistent accounting policies. In preparing the consolidated financial statements, all intra-group assets and liabilities, equity, income, expenses and cash flows relating to transactions between members of the Group are eliminated in full on consolidation.

A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an equity transaction.

If the Group loses control over a subsidiary, it derecognises the related assets (including goodwill), liabilities, non-controlling interest and other components of equity, while any resultant gain or loss is recognised in profit or loss. Any investment retained is recognised at fair value.

Notes to the financial statements For the year ended 30 June 2020

Investments in subsidiaries held by CI Resources Limited are accounted for at cost in the separate financial statements of the parent entity less any impairment charges. Dividends received from subsidiaries are recorded as a component of other revenues in the separate income statement of the parent entity, and do not impact the recorded cost of the investment. Upon receipt of dividend payments from subsidiaries, the parent will assess whether any indicators of impairment of the carrying value of the investment in the subsidiary exist. Where such indicators exist, to the extent that the carrying value of the investment exceeds its recoverable amount, an impairment loss is recognised.

(d) Income tax

The charge for current income tax expense is based on the profit for the year adjusted for any nonassessable or disallowed items. It is calculated using tax rates that have been enacted or are substantively enacted by the balance sheet date.

Deferred tax is accounted for using the balance sheet liability method in respect of temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. No deferred income tax will be recognised from the initial recognition of an asset or liability, excluding a business combination, where there is no effect on accounting or taxable profit or loss.

Deferred tax assets or liabilities are calculated at the tax rates that are expected to apply to the period when the asset is realised or liability is settled. Deferred tax is recognised in the income statement except where it relates to items that may be recognised directly in equity, in which case the deferred tax is adjusted directly against equity.

Deferred income tax assets are recognised to the extent that it is probable that future tax profits will be available against which deductible temporary differences can be utilised. Unrecognised deferred income tax assets are reassessed at each balance sheet date and are recognised to the extent that it has become probable that future taxable profit will allow the deferred tax asset to be recovered.

The amount of benefits brought to account or which may be realised in the future is based on the assumption that no adverse change will occur in income taxation legislation and the anticipation that the economic entity will derive sufficient future assessable income to enable the benefit to be realised and comply with the conditions of deductibility imposed by the law.

The Group offsets deferred tax assets and deferred tax liabilities if and only if it has a legally enforceable right to set off current tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities which intend either to settle current tax liabilities and assets on a net basis, or to realise the assets and settle the liabilities simultaneously, in each future period in which significant amounts of deferred tax liabilities or assets are expected to be settled or recovered.

(e) Inventories

Inventories are measured at the lower of cost and net realisable value. The cost of mining stocks includes direct materials, direct labour, transportation costs and variable and fixed overhead costs relating to mining activities. Overheads are applied on the basis of normal operating capacity. Costs are assigned on the basis of weighted average costs.

Net realisable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and the estimated costs necessary to make the sale.

(f) Property, plant and equipment

Each class of property, plant and equipment is carried at cost less accumulated depreciation and any impairment losses.

Property

Freehold land and buildings are measured at cost less accumulated depreciation on buildings.

Notes to the financial statements For the year ended 30 June 2020

Plant and equipment

Plant and equipment are measured on the cost basis less accumulated depreciation and any impairment losses.

The cost of fixed assets constructed within the Group includes the cost of materials, direct labour, borrowing costs and an appropriate proportion of fixed and variable overheads.

Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as appropriate only when it is probable that future economic benefits associated with the item will flow to the group and the cost of the item can be measured reliably. All other repairs and maintenance are charged to the income statement during the financial period in which they are incurred.

Construction in progress is stated at cost, net of accumulated impairment losses, if any.

Depreciation

The depreciable amount of all fixed assets including building and capitalised lease assets, but excluding freehold land and mine properties are depreciated on a straight line or diminishing balance basis over their useful lives to the economic entity commencing from the time the asset is held ready for use. The depreciation rates used for each class of depreciation assets are:

Class of Fixed Asset	Depreciation Rate
Plant and equipment under lease:
- the shorter of the lease term and life span	20 – 30%
Plant and equipment	5 – 40%
Mine properties	Unit of production over life of mine

The assets' residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet date.

An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains and losses are included in the income statement.

Impairment

The Group tests property, plant and equipment for impairment where there is an indication that the asset may be impaired (which is assessed at least each reporting date) or where there is an indication that previously recognised impairment may have changed.

(g) Mining tenements and exploration expenditure

Costs incurred during exploration and evaluation activities related to an area of interest are accumulated at cost.

Such costs are only carried forward to the extent that they are expected to be recouped through the successful development of the area of interest, or alternatively its sale, or where activities in the area of interest have not yet reached a stage which permits a reasonable assessment of the existence or otherwise of economically recoverable reserves, and active operations are continuing.

Accumulated costs in relation to abandoned areas of interest are written off in full in the year in which the decision to abandon the area is made.

A regular review is undertaken of each area of interest to determine the appropriateness of continuing to carry forward costs in relation to that area of interest.

Notes to the financial statements For the year ended 30 June 2020

(h) Mine properties

Costs incurred prior to the startup of operations or mining assets acquired are accumulated at cost. Such costs are only carried forward to the extent that they are expected to be recouped through the successful exploitation of the known reserves.

Impairment

The Group assesses, at each reporting date, whether there is an indication that mine properties may be impaired. If any indication exists, or when annual impairment testing for an asset is required, the Group estimates the mine properties' recoverable amount. The mine properties recoverable amount is the higher of the asset's or CGU's fair value less costs of disposal and its value in use. The recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. When the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount.

Decommissioning

Estimated decommissioning expenditure is recognised as a provision when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.

If the effect of the time value of money is material, the amounts are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and, where appropriate, the risks specific to the liability.

The amortisation or 'unwinding' of the discount applied in establishing the net present value of provision is charged to the income statement in each accounting period, and is disclosed as a financing costs.

Other changes in the measurement of an existing decommissioning obligation that result from changes in the estimated timing or amount of future costs, or a change in the discount rate, are recognised as an adjustment to the decommissioning asset.

(i) Leases

The Group assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

Policy applied prior to 1 July 2019

Leases of fixed assets where substantially all the risks and benefits incidental to the ownership of the asset, but not the legal ownership that were transferred to entities in the economic entity were classified as finance leases.

Finance leases were capitalised by recording an asset and a liability at the lower of the amounts equal to the fair value of the leased property or the present value of the minimum lease payments, including any guaranteed residual values. Lease payments were allocated between the reduction of the lease liability and the lease interest expense for the period.

Lease payments of operating leases, where substantially all the risks and benefits remain with the lessor, were charged as expenses in the periods in which they are incurred.

Lease incentives under operating leases were recognised as a liability and amortised on a straight-line basis over the life of the lease term.

Leased assets were depreciated on a straight-line basis over their estimated useful lives where it is likely that the economic entity will obtain ownership of the asset or over the term of the lease.

Notes to the financial statements For the year ended 30 June 2020

Policy as of 1 July 2019

Group as a lessee

The Group applies a single recognition and measurement approach for all leases, except for short-term leases and leases of low-value assets. The Group recognises lease liabilities to make lease payments and right-of-use assets representing the right to use the underlying assets.

Right-of-use assets

The Group recognises right-of-use assets at the commencement date of the lease (i.e., the date the underlying asset is available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognised, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received. Right-ofuse assets are depreciated on a straight-line basis over the shorter of the lease term and the estimated useful lives of the assets.

If ownership of the leased asset transfers to the Group at the end of the lease term or the cost reflects the exercise of a purchase option, depreciation is calculated using the estimated useful life of the asset. The right-of-use assets are also subject to impairment.

Lease liabilities

At the commencement date of the lease, the Group recognises lease liabilities measured at the present value of lease payments to be made over the lease term. The lease payments include fixed payments (including in substance fixed payments) less any lease incentives receivable, variable lease payments that depend on an index or a rate, and amounts expected to be paid under residual value guarantees. The lease payments also include the exercise price of a purchase option reasonably certain to be exercised by the Group and payments of penalties for terminating the lease, if the lease term reflects the Group exercising the option to terminate. Variable lease payments that do not depend on an index or a rate are recognised as expenses (unless they are incurred to produce inventories) in the period in which the event or condition that triggers the payment occurs.

In calculating the present value of lease payments, the Group uses its incremental borrowing rate at the lease commencement date because the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the lease payments (e.g., changes to future payments resulting from a change in an index or rate used to determine such lease payments) or a change in the assessment of an option to purchase the underlying asset. The Group's lease liabilities are included in Interest-bearing loans and borrowings (note19).

Short-term leases and leases of low-value assets

The Group applies the short-term lease recognition exemption to its short-term leases (i.e., those leases that have a lease term of 12 months or less from the commencement date and do not contain a purchase option). It also applies the lease of low-value assets recognition exemption to leases of office equipment that are considered to be low value. Lease payments on short-term leases and leases of low value assets are recognised as expense on a straight-line basis over the lease term.

(j) Financial instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

Financial Assets

Initial recognition and measurement

Financial assets are classified, at initial recognition, as subsequently measured at amortised cost, fair value through other comprehensive income (OCI), and fair value through profit or loss.

The classification of financial assets at initial recognition depends on the financial asset's contractual cash flow characteristics and the Group's business model for managing them. The Group initially

Notes to the financial statements For the year ended 30 June 2020

measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs. Trade receivables are measured at the transaction price determined under AASB 15.

In order for a financial asset to be classified and measured at amortised cost or fair value through OCI, it needs to give rise to cash flows that are 'solely payments of principal and interest (SPPI)' on the principal amount outstanding. This assessment is referred to as the SPPI test and is performed at an instrument level.

The Group's business model for managing financial assets refers to how it manages its financial assets in order to generate cash flows. The business model determines whether cash flows will result from collecting contractual cash flows, selling the financial assets, or both.

Purchases or sales of financial assets that require delivery of assets within a time frame established by regulation or convention in the market place (regular way trades) are recognised on the trade date, i.e., the date that the Group commits to purchase or sell the asset.

Subsequent measurement

For purposes of subsequent measurement, financial assets are classified in four categories:

• Financial assets at amortised cost (debt instruments)
• Financial assets at fair value through OCI with recycling of cumulative gains and losses (debt instruments
• Financial assets designated at fair value through OCI with no recycling of cumulative gains and losses upon derecognition (equity instruments)
• Financial assets at fair value through profit or loss

Financial assets at amortised cost (debt instruments)

This category is the most relevant to the Group. The Group measures financial assets at amortised cost if both of the following conditions are met:

• The financial asset is held within a business model with the objective to hold financial assets in order to collect contractual cash flows; and
• The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Financial assets at amortised cost are subsequently measured using the effective interest (EIR) method and are subject to impairment. Gains and losses are recognised in profit or loss when the asset is derecognised, modified or impaired.

The Group's financial assets at amortised cost includes trade receivables, term deposits and cash and cash equivalents.

Financial assets at fair value through OCI (debt instruments)

The Group measures debt instruments at fair value through OCI if both of the following conditions are met:

• The financial asset is held within a business model with the objective of both holding to collect contractual cash flows and selling; and
• The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding

For debt instruments at fair value through OCI, interest income, foreign exchange revaluation and impairment losses or reversals are recognised in the statement of profit or loss and computed in the same manner as for financial assets measured at amortised cost. The remaining fair value changes are recognised in OCI. Upon derecognition, the cumulative fair value change recognised in OCI is recycled to profit or loss. The Group does not have any debt instruments at fair value through OCI.

Notes to the financial statements For the year ended 30 June 2020

Financial assets designated at fair value through OCI (equity instruments)

Upon initial recognition, the Group can elect to classify irrevocably its equity investments as equity instruments designated at fair value through OCI when they meet the definition of equity under IAS 32 Financial Instruments: Presentation and are not held for trading. The classification is determined on an instrument-by-instrument basis.

Gains and losses on these financial assets are never recycled to profit or loss. Dividends are recognised as other income in the statement of profit or loss when the right of payment has been established, except when the Group benefits from such proceeds as a recovery of part of the cost of the financial asset, in which case, such gains are recorded in OCI. Equity instruments designated at fair value through OCI are not subject to impairment assessment.

The Group elected to classify irrevocably its listed equity investment under this category.

Financial assets at fair value through profit or loss

Financial assets at fair value through profit or loss include financial assets held for trading, financial assets designated upon initial recognition at fair value through profit or loss, or financial assets mandatorily required to be measured at fair value. Financial assets are classified as held for trading if they are acquired for the purpose of selling or repurchasing in the near term. Derivatives, including separated embedded derivatives, are also classified as held for trading unless they are designated as effective hedging instruments. Financial assets with cash flows that are not solely payments of principal and interest are classified and measured at fair value through profit or loss, irrespective of the business model. Notwithstanding the criteria for debt instruments to be classified at amortised cost or at fair value through OCI, as described above, debt instruments may be designated at fair value through profit or loss on initial recognition if doing so eliminates, or significantly reduces, an accounting mismatch.

Financial assets at fair value through profit or loss are carried in the statement of financial position at fair value with net changes in fair value recognised in the statement of profit or loss.

This category includes forward currency contracts and capital notes which the Group had not irrevocably elected to classify at fair value through OCI. Dividends on listed equity investments are also recognised as other income in the statement of profit or loss when the right of payment has been established.

Derecognition

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily derecognised (i.e., removed from the Group's consolidated statement of financial position) when:

• The rights to receive cash flows from the asset have expired; or
• The Group has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a 'pass-through' arrangement; and either
• the Group has transferred substantially all the risks and rewards of the asset, or
• the Group has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.

When the Group has transferred its rights to receive cash flows from an asset or has entered into a passthrough arrangement, it evaluates if, and to what extent, it has retained the risks and rewards of ownership. When it has neither transferred nor retained substantially all of the risks and rewards of the asset, nor transferred control of the asset, the Group continues to recognise the transferred asset to the extent of its continuing involvement. In that case, the Group also recognises an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the Group has retained.

Notes to the financial statements For the year ended 30 June 2020

Impairment of financial assets

Further disclosures relating to impairment of financial assets are also provided in the following notes:

• Disclosures for significant assumptions
• Trade receivables

ECLs are recognised in two stages. For credit exposures for which there has not been a significant increase in credit risk since initial recognition, ECLs are provided for credit losses that result from default events that are possible within the next 12-months (a 12-month ECL). For those credit exposures for which there has been a significant increase in credit risk since initial recognition, a loss allowance is required for credit losses expected over the remaining life of the exposure, irrespective of the timing of the default (a lifetime ECL).

For trade receivables, the Group applies a simplified approach in calculating ECLs. Therefore, the Group does not track changes in credit risk, but instead recognises a loss allowance based on lifetime ECLs at each reporting date. The Group has established a provision matrix that is based on its historical credit loss experience, adjusted for forward-looking factors specific to the debtors and the economic environment.

The Group considers a financial asset to be in default when internal or external information indicates that the Group is unlikely to receive the outstanding contractual amounts in full before taking into account any credit enhancements held by the Group. A financial asset is written off when there is no reasonable expectation of recovering the contractual cash flows.

Financial liabilities

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and borrowings, payables, as appropriate.

All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs.

The Group's financial liabilities include trade and other payables, loans and borrowings.

Subsequent measurement

The measurement of financial liabilities depends on their classification, as described below:

Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated upon initial recognition as at fair value through profit or loss.

Financial liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the near term. This category also includes derivative financial instruments entered into by the Group that are not designated as hedging instruments in hedge relationships as defined by AASB 9. Separated embedded derivatives are also classified as held for trading.

Gains or losses on liabilities held for trading are recognised in the statement of profit or loss. The Group has no financial liabilities held for trading.

Loans and borrowings

This is the category most relevant to the Group. After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the EIR method. Gains and losses are recognised in profit or loss when the liabilities are derecognised as well as through the EIR amortisation process.

Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included as finance costs in the statement of profit or loss.

Notes to the financial statements For the year ended 30 June 2020

Derecognition

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the statement of profit or loss.

Derivative financial instruments

The Group uses derivative financial instruments, such as forward currency contracts, to hedge its foreign currency risks. The consolidated entity does not apply hedge accounting and such derivative financial instruments are initially recognised at fair value on the date on which a derivative contract is entered into and are subsequently remeasured at fair value.

Derivatives are carried as financial assets when the fair value is positive and as financial liabilities when the fair value is negative.

(k) Impairment of non-financial assets

At each reporting date, the company assesses whether there is any indication that an asset may be impaired.

Where an indicator of impairment exists, the Company makes a formal estimate of recoverable amount. Where the carrying amount of an asset exceeds its recoverable amount the asset is considered impaired and is written down to its recoverable amount.

Recoverable amount is the greater of fair value less costs to sell and value in use. It is determined for an individual asset, unless the asset's value in use cannot be estimated to be close to its fair value less costs to sell and it does not generate cash inflows that are largely independent of those from other assets or groups of assets, in which case, the recoverable amount is determined for the cash-generating unit to which the asset belongs.

In assessing value in use, the estimated future cash flows based on management's forecasts are discounted to their present value using a pretax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. In determining fair value less costs of disposal, recent market transactions are taken into account. If no such transactions can be identified, an appropriate valuation model is used.

For assets, an assessment is made at each reporting date to determine whether there is an indication that previously recognised impairment losses no longer exist or have decreased. If such indication exists, the Group estimates the asset's or cash generating unit's ("CGU's") recoverable amount. A previously recognised impairment loss is reversed only if there has been a change in the assumptions used to determine the asset's recoverable amount since the last impairment loss was recognised. The reversal is limited so that the carrying amount of the asset does not exceed its recoverable amount, nor exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognised for the asset in prior years. Such reversal is recognised in profit or loss.

(l) Intangibles

Goodwill

Goodwill is initially recorded at the amount by which the purchase price for a business or for an ownership interest in a controlled entity exceeds the fair value attributed to the identifiable net assets at the date of acquisition. The groups goodwill, which is classified as technical goodwill, arose on 1 May 2011 on the acquisition of the 100% interest in Cheekah-Kemayan Plantations Sdn. Bhd. Technical goodwill describes a category of goodwill arising as an offsetting account to deferred tax recognized in business combinations.

Following initial recognition, goodwill is measured at cost less any accumulated impairment losses.

Notes to the financial statements For the year ended 30 June 2020

Goodwill is tested for impairment annually or more frequently if events or changes in circumstances indicate that the carrying value may be impaired. The Group has applied the general guidelines for allocating goodwill for the purpose of impairment testing. When performing the annual impairment test for goodwill, deferred tax recognised in relation to the acquired assets in a business combination reduces the net carrying value prior to the eventual impairment charges. This is done in order to avoid an immediate impairment of all technical other goodwill. When deferred tax from the initial recognition decreases, more core goodwill is exposed for impairment. Any impairment is booked first against core goodwill, and then any additional impairment is recognised against other non-financial assets.

Impairment losses recognised for goodwill are not subsequently reversed.

Gains and losses on the disposal of an entity include the carrying amount of goodwill relating to the entity sold.

Research and Development

Expenditure during the research phase of a project is recognised as an expense when incurred.

Development costs are capitalised only when technical feasibility studies indicate that the project will deliver future economic benefits and these benefits can be measured reliably. Following initial recognition of the development expenditure as an asset, the asset is carried at cost less any accumulated amortisation and accumulated impairment losses. Amortisation of the asset begins when development is complete and the asset is available for use. It is amortised over the period of expected future benefit. During the period of development, the asset is tested for impairment annually.

(m) Foreign currency transactions and balances

Functional and presentation currency

The functional currency of each of the group's entities is determined by reference to the currency of the primary economic environment in which that entity operates. The consolidated financial statements are presented in Australian dollars which is the parent entity's functional and presentation currency.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the date of the transaction. Foreign currency monetary items are translated at the year-end exchange rate. Non-monetary items measured at historical cost continue to be carried at the exchange rate at the date of the transaction. Non-monetary items measured at fair value are reported at the exchange rate at the date when fair values were determined.

Exchange differences arising on the translation of monetary items are recognised in the income statement.

Exchange differences arising on the translation of non-monetary items are recognised directly in equity to the extent that the gain or loss is directly recognised in equity, otherwise the exchange difference is recognised in the income statement.

Group companies

The financial results and position of foreign operations whose functional currency is different from the group's presentation currency are translated as follows:

• Assets and liabilities are translated at year-end exchange rates prevailing at that reporting date.
• Income and expenses are translated at average exchange rates for the period.

Exchange differences arising on translation of foreign operations are transferred directly to the group's foreign currency translation reserve in the balance sheet. These differences are recognised in the income statement in the period in which the operation is disposed.

(n) Cash and cash equivalents

Cash and cash equivalents include cash on hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts

Notes to the financial statements For the year ended 30 June 2020

are shown within short-term borrowings in current liabilities on the balance sheet. The carrying values of term deposits represent the fair values.

(o) Segment reporting

An operating segment is a component of an entity that engages in business activities from which it may earn revenues and incur expenses (including revenues and expenses relating to transactions with other components of the same entity), whose operating results are regularly reviewed by the entity's chief operating decision maker to make decisions about resources to be allocated to the segment and assess its performance and for which discrete financial information is available. This includes start up operations which are yet to earn revenues. Management will also consider other factors in determining operating segments such as the existence of a line manager and the level of segment information presented to the board of directors.

Operating segments have been identified based on the information provided to the chief operating decision makers — being the executive management team.

The group aggregates two or more operating segments when they have similar economic characteristics, and the segments are similar in each of the following respects:

• Nature of the products and services
• Nature of the production processes
• Type or class of customer for the products and services
• Methods used to distribute the products or provide the services, and if applicable
• Nature of the regulatory environment

Operating segments that meet the quantitative criteria as prescribed by AASB 8 are reported separately.

However, an operating segment that does not meet the quantitative criteria is still reported separately where information about the segment would be useful to users of the financial statements.

Information about other business activities and operating segments that are below the quantitative criteria are combined and disclosed in a separate category for unallocated segments.

(p) Business Combination

Business combinations are accounted for using the acquisition method. The cost of an acquisition is measured as the aggregate of the consideration transferred, which is measured at acquisition date fair value, and the amount of any non-controlling interests in the acquiree. For each business combination, the Group elects whether to measure the non-controlling interests in the acquiree at fair value or at the proportionate share of the acquiree's identifiable net assets.

Acquisition-related costs are expensed as incurred and included in administrative expenses.

When the Group acquires a business, it assesses the financial assets and liabilities assumed for appropriate classification and designation in accordance with the contractual terms, economic conditions, the Group's operating or accounting policies and other pertinent conditions as at the acquisition date. This includes the separation of embedded derivatives in host contracts by the acquiree.

If the business combination is achieved in stages, the acquisition date fair value of the acquirer's previously held equity interest in the acquiree is remeasured to fair value at the acquisition date through profit or loss.

Any contingent consideration to be transferred by the acquirer will be recognised at fair value at the acquisition date. Subsequent changes to the fair value of the contingent consideration which is deemed to be an asset or liability will be recognised in accordance with AASB 9 either in profit or loss or as a change to other comprehensive income. If the contingent consideration is classified as equity, it should not be remeasured until it is finally settled within equity.

Notes to the financial statements For the year ended 30 June 2020

Goodwill is initially measured at cost (being the excess of the aggregate of the consideration transferred and the amount recognised for non-controlling interests and any previous interest held over the net identifiable assets acquired and liabilities assumed). If the fair value of the net assets acquired is in excess of the aggregate consideration transferred, the Group re-assesses whether it has correctly identified all of the assets acquired and all of the liabilities assumed and reviews the procedures used to measure the amounts to be recognised at the acquisition date. If the reassessment still results in an excess of the fair value of net assets acquired over the aggregate consideration transferred, then the gain is recognised in profit or loss.

After initial recognition, goodwill is measured at cost less any accumulated impairment losses. For the purpose of impairment testing, goodwill acquired in a business combination is, from the acquisition date, allocated to each of the Group's cash-generating units that are expected to benefit from the combination, irrespective of whether other assets or liabilities of the acquiree are assigned to those units.

Where goodwill forms part of a cash-generating unit and part of the operation within that unit is disposed of, the goodwill associated with the operation disposed of is included in the carrying amount of the operation when determining the gain or loss on disposal of the operation. Goodwill disposed of in this circumstance is measured based on the relative values of the operation disposed of and the portion of the cash-generating unit retained.

(q) Revenue

Revenue from contract with customers

The Group is in the business of:

• Mining, processing and sale of phosphate rock, phosphate dust and chalk;
• Supply of fuel and oil products to other Christmas Island entities;
• Providing maintenance, fuel pilotage and stevedoring services to other Christmas Island entities; and
• Operating a palm oil estate, processing and sale of palm oil products in Malaysia

Revenue from phosphate sales

Each phosphate shipment is governed by a sales contract with a customer, including spot sales and medium term supply agreements with the transaction price on a per tonne basis. Revenue from the sale of phosphate is recognised at a point in time when the control of the asset is transferred to the customer which is typically upon completion of the loading of the product.

For the Group's phosphate sales made on a Cost and Freight basis, the Group is responsible for providing freight/shipping services after the date the Group transfers control of the phosphate to its customer. This is considered as a separate performance obligation under AASB 15 which are satisfied at a different point in time from the phosphate sales. The Group, therefore has a separate performance obligation for freight/shipping services which are provided solely to facilitate the sale of the phosphate it produces. Revenue for freight/shipping is recognised over the same time as the shipping occurs.

Revenue from sale of palm oil products

Each palm oil sale is governed by a sales contract with a customer. Revenue from the sale of palm oil products is recognised at a point in time when the control of the asset is transferred to the customer which is typically upon completion of the loading of the product.

Revenue from fuel and oil products

Each fuel oil sale is governed by a sales contract with a customer, including long term supply arrangements and point of sale bowser sales. Revenue from the sale of fuel products is recognised at a point in time when the control of the asset is transferred to the customer which is typically upon completion of the loading of the product.

Revenue from service contracts

Revenue from services contracts is governed by a long term contract with a customer. These activities tend to be substantially the same with the same pattern of transfer to the customer. Where this is the case, which is the majority of the services contracts, these services are taken to be one performance obligation and the total transaction price is allocated to the performance obligation identified.

Notes to the financial statements For the year ended 30 June 2020

Performance obligations are fulfilled over time as the Group largely enhances assets which the customer controls. Customers are typically invoiced monthly for an amount that is calculated on either a schedule of rates or a cost plus basis. For these contracts, the transaction price determined as an estimate of this variable consideration.

Interest income

Revenue is recognised as the interest accrues using the effective interest rate method (which was the rate that exactly discounts estimated future cash receipts through the expected life of the financial instrument to the gross carrying amount of the financial asset).

Dividends

Revenue is recognised when the right to receive a dividend has been established.

(r) Government grants

Government grants are recognised when there is reasonable assurance that the grant will be received and all attaching conditions will be complied with.

When the grant relates to an expense item, it is recognised as income over the periods necessary to match the grant on a systematic basis to the costs that it is intended to compensate.

When the grant relates to an asset, the fair value is credited to a deferred income account and is released to the income statement over the expected useful life of the relevant asset by equal annual installments.

(s) Employee benefits

Provision is made for the Company's liability for employee benefits arising from services rendered by employees up until balance date. Employee benefits that are expected to be settled within one year have been measured at the amounts expected to be paid when the liability is settled, plus related on-costs. Employee benefits payable later than one year have been measured at the present value of the estimated future cash outflows to be made for those benefits.

(t) Provisions

Provisions are recognised when the group has a legal or constructive obligation, as a result of past events, for which it is probable that an outflow of economic benefits will result and that outflow can be reliably measured.

(u) Borrowing costs

Borrowing costs directly attributable to the acquisition, construction or production of a qualifying assets that necessarily take a substantial period of time to prepare for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale.

All other borrowing costs are expensed during the period in which they are incurred.

(v) Bearer plants & Plantation development costs

Bearer plants are measured at cost, less any subsequent accumulated depreciation and impairment. Prior to maturity, the costs of bearer plants includes the cost of direct materials, direct labour and other costs directly attributable to the bearer plants reaching maturity. Post maturity, maintenance costs on bearer plants are expensed as incurred.

Plantation costs

Costs incurred on land clearing are capitalised as plantation development costs and is amortised over the economic useful life of the asset (25 years). Costs on the concession lease with a term of 60 years are capitalised and amortised over the remaining term of lease.

Notes to the financial statements For the year ended 30 June 2020

Depreciation

Mature bearer plants are subject to depreciation on a straight line basis over their estimated useful lives. The useful life of a bearer plant is estimated at 25 years.

The carrying amount of bearer plants is reviewed annually by the Directors to ensure it is not in excess of the recoverable amount from these assets.

(w) Biological assets

Biological assets consist of agricultural produce growing on bearer plants at reporting date.

Biological assets are measured at their fair value less estimated point of sale costs at the point of harvest. The movement in fair value less estimated point of sale costs of biological assets are included in the statement of comprehensive income in the year they arise.

(x) Term deposit

Term deposits which have a maturity of less than twelve months are shown in current assets. Term deposits which are held to fund employee benefits stated and demolition costs are shown in non current assets.

(y) Goods and services tax (GST)

Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not recoverable from the Australian Taxation Office. In this case it is recognised as part of the cost of acquisition of the asset or as part of the expense.

Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or payable to, the Australian Taxation Office is included with other receivables or payables in the balance sheet.

Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities which are recoverable from, or payable to the Australian Taxation Office, are presented as operating cash flow.

Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the Australia Taxation Office.

(z) Provision for dividend

The Group recognises a liability to pay a dividend when the distribution is authorised and the distribution is no longer at the discretion of the Group. As per corporate laws in Australia, a dissolution is authorized when it is approved by the shareholders. A corresponding amount is recognized directly in equity.

(aa) Investments in joint ventures

A joint venture is a type of joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the joint venture. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require the unanimous consent of the parties sharing control.

The considerations made in determining significant influence or joint control are similar to those necessary to determine control over subsidiaries. The Group's investment in its joint ventures are accounted for using the equity method.

Under the equity method, the investment in a joint venture is initially recognised at cost. The carrying amount of the investment is adjusted to recognise changes in the Group's share of net assets of the joint

Notes to the financial statements For the year ended 30 June 2020

venture since the acquisition date. Goodwill relating to the joint venture is included in the carrying amount of the investment and is not tested for impairment separately.

The statement of comprehensive income reflects the Group's share of the results of operations of the joint venture. Any change in OCI of those investees is presented as part of the Group's OCI. In addition, when there has been a change recognised directly in the equity of the joint venture, the Group recognises its share of any changes, when applicable, in the statement of changes in equity. Unrealised gains and losses resulting from transactions between the Group and the joint venture are eliminated to the extent of the interest in the joint venture.

The aggregate of the Group's share of profit or loss of a joint venture is shown on the face of the statement of comprehensive income outside operating profit and represents profit or loss after tax and non-controlling interests in the subsidiaries of the joint venture.

The financial statements of the joint venture are prepared for the same reporting period as the Group. When necessary, adjustments are made to bring the accounting policies in line with those of the Group.

After application of the equity method, the Group determines whether it is necessary to recognise an impairment loss on its investment in its joint venture. At each reporting date, the Group determines whether there is objective evidence that the investment in the joint venture is impaired. If there is such evidence, the Group calculates the amount of impairment as the difference between the recoverable amount of the joint venture and its carrying value, and then recognises the loss within 'Share of profit of an associate and a joint venture' in the statement of comprehensive income.

(ab) Contributed equity

Ordinary shares are classified as equity.

Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from the proceeds.

(ac) Comparative figures

Where required by Accounting Standards, comparative figures have been adjusted to conform with changes in presentation for the current financial year.

(ad) Earnings per share

(i) Basic earnings per share

Basic earnings per share is calculated by dividing the profit attributable to equity holders of the consolidated entity, excluding any costs of servicing equity other than ordinary shares, by the weighted average number of ordinary shares outstanding during the year, adjusted for bonus elements in ordinary shares issued during the year.

(ii) Diluted earnings per share

Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account the after income tax effect of interest and other financing costs associated with dilutive potential ordinary shares and the weighted average number of shares assumed to have been issued for no consideration in relation to dilutive potential ordinary shares.

Notes to the financial statements For the year ended 30 June 2020

3. Judgments in applying accounting policies and key sources of estimation uncertainty

(a) In the process of applying the Group's accounting policies, management has made the following judgments, apart from those involving estimations, which have the most significant effect on the amounts recognised in the financial statements.

Impact of COVID-19

The COVID-19 outbreak was declared a pandemic by the World Health Organization in March 2020. The outbreak and the response of Governments in dealing with the pandemic is interfering with general activity levels within the community, the economy and the operations of the Group. The scale and duration of these developments remain uncertain as at the date of this report. The Group has considered the potential impact of the COVID-19 pandemic in the significant accounting judgements, estimates and assumptions. However, as these are subject to increased uncertainty the actual outcomes may differ from the estimates.

Assessment of mine life on Christmas Island

The financial statements have been prepared on the basis that the resource supports continued operations through to the late 2020's based on the current market parameters and expectations.

Determination of mine life

The Group's estimation of its mineral resources was prepared by or under the supervision of Competent Persons as defined in the Australian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves 2004 (the "JORC code").

There are numerous uncertainties inherent in estimating mineral resources and assumptions that are valid at the time of estimation may change significantly when new information becomes available.

Changes in the forecast prices of commodities, exchange rates or production costs may change the economic status of resources and may, ultimately, result in the resources being restated. Such changes in resources could impact on depreciation and amortisation rates, asset carrying values and provisions for decommissioning.

(b) The carrying amounts of certain assets and liabilities are often determined based on estimates and assumptions of future events. The key estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of certain assets and liabilities within the next annual reporting period are:

Provision for expected credit losses of trade receivables

For trade receivables, the Group has applied the standard's simplified approach and has calculated ECLs based on lifetime expected credit losses. The Group has established a provision matrix that is based on the Group's historical credit loss experience which are based on days past due, adjusted for forwardlooking factors specific to the debtors and the economic environment. The assessment of the correlation between historical observed default rates, forecast economic conditions and ECLs is a significant estimate.

Impairment of Farming CGU

As a result of a reduction in the Crude Palm Oil ("CPO") short term and long term pricing forecasts as well as a revised production outlook, the carrying value of the Farming CGU exceeded its recoverable amount and a pre-tax impairment of $3.1 million (post-tax $2.2 million) was recognised in 'impairment of non-financial assets', which included impairment of goodwill. The recoverable amount of the Palm Oil CGU was determined using value in use ("VIU") calculations, based on forecast cash flows. Any adverse movements in key assumptions, including uncertain future impacts of COVID-19 may lead to further impairment. Refer to note 14 for further details.

Notes to the financial statements For the year ended 30 June 2020

Impairment of property, plant and equipment

Property, plant and equipment is reviewed for impairment if there is any indication that the carrying amount may not be recoverable. Where a review for impairment is conducted, the recoverable amount is assessed by reference to the higher of 'value in use' (being the net present value of expected future cash flows of the relevant cash generating unit) and 'fair value less costs to sell'.

In determining value in use, future cash flows are based on:

• Estimates of the quantities of ore reserves and mineral resources;
• Future production levels;
• Future commodity prices and foreign exchange rates; and
• Future cash costs of production and capital expenditure.

Variations to the expected future cash flows, and the timing thereof, could result in significant changes to any impairment losses recognised, if any, which could in turn impact future financial results.

Impairment of Goodwill

Goodwill is reviewed for impairment annually or more frequently if events or changes in circumstances indicate that the carrying value may be impaired. Assumptions are made regarding post tax discount rates applied to cash flow projections. The cash flows are based on the financial budget approved by management for the upcoming year and assumptions are made regarding the inflation rates for the following 4 years and a terminal value.

Provisions for decommissioning costs

Decommissioning costs are a normal consequence of mining and the majority of this expenditure is incurred at the end of a mine's life. In determining an appropriate level of provision consideration is given to the expected future costs to be incurred, the timing of these expected future costs (largely dependent on the life of the mine), the appropriateness of the discount rate and the estimated future level of inflation.

The ultimate cost of decommissioning is uncertain and costs can vary in response to many factors including changes to the relevant legal requirements or the emergence of new decommissioning techniques. The expected timing of expenditure can also change, for example in response to changes in reserves or to production rates.

Changes to any of the estimates could result in significant changes to the level of provisioning required, which would in turn impact future financial results.

Fair value of biological assets

The fair value of biological assets, being the agricultural produce growing on bearer plants at reporting date are measured at their fair value less estimated point of sale costs at the point of harvest. In determining the fair value at reporting date a number of inputs are used in estimating the inputs to the fair value less estimated point of sales costs. Refer note 15 for significant assumptions.

Deferred Tax Asset

The deferred tax asset will only be obtained if:

• (a) future assessable income is derived of a nature and of an amount sufficient to enable the benefit to be realised;
• (b) the conditions for deductibility imposed by tax legislation continue to be complied with; and
• (c) no changes in tax legislation adversely affect the consolidation entity in realising the benefit.

The deferred tax assets are considered to be probable of being fully recovered, as it is believed that the entity will have future taxable income to fully utilise the tax benefit. Refer note 5.

Notes to the financial statements For the year ended 30 June 2020

			2020	2019
			$'000s	$'000s
4.		Revenueand expenses
	a)	Revenue
		Revenue from contracts with customer
		Phosphate sales	62,570	72,794
		Palm oil sales	29,597	37,961
		Fuel sales	14,323	15,232
		Other sales and services	17,979	8,833
		Total revenue from contracts with customers	124,469	134,820
		Other revenue
		Dividend income	369	-
		Interest on cash and term deposits	678	952
		Total other revenue	1,047	952
			125,516	135,772
	b)	Cost of sales
		Production costs	87,112	87,574
		Shipping & marketing	13,008	16,068
		Depreciation	8,129	6,735
			108,249	110,377
	c)	Other income
		Net gain on disposal of assets	-	14
		Net foreign exchange gains	285	1,048
		Government grants	582	-
		Other	-	57
	d)	Other expenses	867	1,119
		Administration	11,471	11,357
		Operating lease expense1	-	541
		Net loss on disposal of assets	311	-
		Expected credit loss
			292	39
		Unrealised loss on capital notes	36	-
		Redundancy expense	330	555
		Depreciation2	506	116
			12,946	12,608

1 The comparative period has not been restated for the adoption of AASB 16, as the Group has applied the standard using the modified retrospective approach. Refer to note 11 for further detail.

2 In the current period, depreciation includes depreciation on right of use assets.

e) Finance costs

	1,947	645
Interest expense1	794	237
Accretion of provisions	1,153	408

1 The current period includes interest on lease liabilities, the comparative period has not been restated for the adoption of AASB 16, as the Group has applied the standard using the modified retrospective approach. Refer to note 11 for further detail.

f)Employee benefits expense	23,307	25,690

Employee benefits expense comprises salaries and wages, superannuation, employee bonus and travel airfares together with accruals for employee entitlements such as annual leave, long service leave, redundancy and sick leave expensed during the year. Included in employee benefits expense is a superannuation expense of $1,933,000 (2019: $2,068,000).

Notes to the financial statements For the year ended 30 June 2020

5. Income tax

	2020	2019
The major components of income tax are:	$'000s	$'000s
Statement of Comprehensive Income
Current income tax
Current income tax charge	1,359	4,865
Adjustments in respect of current income tax of previous years	(16)	1,249
Deferred income tax
Relating to origination and reversal of temporary differences	(401)	(452)
Adjustments in respect of deferred tax of previous years	(759)	(1,145)
Income tax expense reported in the Statement of Comprehensive Income	183	4,517
A reconciliation between tax expense and the product of accountingprofit before income tax multiplied by the Group's applicable income taxrate is as follows:
Accounting profit before income tax	215	13,188
At the Group's statutory income tax rate of 30% (2019: 30%)	65	3,956
Income/expenditure not allowable for income tax purposes:
Add:
- Adjustments in respect of previous years	(775)	104
- Effect of partial tax exemption and tax relief	-	-
- Impairment of goodwill	930	-
-Assessable income for income tax purposes	8	6
- Expenditure not allowable for income tax purposes	280	545
- Deferred tax asset not bought to account	-	151
- Recoupment of previously unrecognised deferred tax asset	(45)	-
- Differences due to exchange rates applied to temporary differences and
changes in tax rates	(19)	41
- Difference in global tax rates	(261)	(286)
Aggregate income tax expense	183	4,517

Notes to the financial statements For the year ended 30 June 2020

	Statement of FinancialPosition		Comprehensive Income	Statement of
	2020	2019	2020	2019
	$'000s	$'000s	$'000s	$'000s
Deferred income tax
Deferred income tax at 30 June relates to
the following:
CONSOLIDATED
Deferred tax liabilities
Inventories	(1,748)	(1,865)	117	(34)
Property, plant and equipment	(3,657)	(5,536)	1,879	1,579
Receivables	(60)	(15)	(45)	(18)
Gross deferred income tax liabilities	(5,465)	(7,416)
Deferred tax assets
Other payables and provisions	9,086	9,215	(129)	278
Property, plant and equipment	474	482	(8)	(147)
Other financial assets	(463)	(350)	(113)	105
Inventories	(475)	203	(678)	(220)
Investments	12	1	11	(8)
Receivables	368	317	51	-
Lease liabilities	1	-	1
Tax losses	158	84	74	62
Gross deferred income tax assets	9,161	9,952
Deferred tax income/(expense)			1,160	1,597

CI Resources Limited and its wholly owned controlled entities have not entered into a tax consolidation agreement.

6. Earnings per share

	2020Cents	2019Cents
Basic and diluted earnings per share	0.03	7.50
	2020Number	2019Number
Weighted average number of shares used as the denominator
Weighted average number of ordinary shares used as the denominatorin calculating basic and diluted earnings per share.	115,581,107	115,581,107
	2020$'000s	2019$'000s
Profit used in calculating basic and diluted losses per share
Net profit	32	8,671

Notes to the financial statements For the year ended 30 June 2020

There are no instruments (e.g. share options) excluded from the calculation of diluted earnings per share that could potentially dilute basic earnings per share in the future because they are antidilutive for either of the periods presented.

There have been no transactions involving ordinary shares or potential ordinary shares that would significantly change the number of ordinary shares or potential ordinary shares outstanding between the reporting date and the date of completion of these financial statements.

	2020	2019
	$'000s	$'000s
7. Cash and cash equivalents
Cash at bank and on hand	44,149	39,726
	44,149	39,726
8. Trade and other receivables
Trade debtors	26,652	27,758
Other receivables	1,766	828
	28,418	28,586

Trade debtors are non-interest bearing and are generally on 30-150 day terms. As at 30 June 2020, an ECL of $0.124 million was recognised (2019: $0.039 million). Subsequent to year end $2.1 million relating to past due but not impaired balances have been collected.

For trade and other receivables, the Group has applied the standard's simplified approach and has calculated ECLs based on lifetime expected credit losses. The Group has established a provision matrix that is based on the Group's historical credit loss experience for customer groups, adjusted for forward-looking factors specific to the debtors, industry payment profiles and the economic environment. As at 30 June 2020, the Group has calculated the ECL based on lifetime expected credit losses and noted these are not material.

The maximum exposure to credit risk at the reporting date is the carrying value of the receivables disclosed in this note. No additional impairment was identified on trade debtors through the COVID-19 pandemic. Trade debtor composition across the Group remained consistent, and notwithstanding demand and production variation recoverability continued to be in line with credit terms provided to major customers.

As at 30 June, the ageing analysis of trade receivables is, as follows:

		Current		Days past due
			< 30	30-60	61-90	> 91
	Total		days	days	days	Days
	$000	$000	$000	$000	$000	$000
2020	26,652	22,614	2,290	409	338	1,001
2019	27,758	23,402	989	751	476	2,140

9. Inventories

	2020	2019
	$'000s	$'000s
Consumable materials and stores	5,799	5,485
Goods in transit	3,334	7,071
Finished goods	23,357	23,677
	32,490	36,233

Notes to the financial statements For the year ended 30 June 2020

10. Other Financial Assets

	2020	2019
	$'000s	$'000s
Trust fund term deposit-measures at amortised cost	6,623	7,767
Capital notes-measured at FVTPL	956	992
Equity shares-measured at FVOCI	-	190
Listed shares-measured at FVOCI	20,831	23,401
	28,410	32,350

Under the terms of the current Workplace Agreement between the Union of Christmas Island Workers and Phosphate Resources Limited a trust fund term deposit to meet employee entitlements is maintained. This trust fund may only be used to meet employee entitlements but may be drawn down as they arise. The trust fund term deposit currently stands at $4,260,000 (2019: $5,428,000). The interest earned on the term deposit of $101,486 (2019: $104,610) has been added to the term deposit. Refer to note 30 for further details on financial instruments.

11. Right of use assets and lease liabilities

The Group has lease contracts as a means of providing residential accommodation and office premises.

	Rental leases
	$'000s
Non Current Asset
As at 1 July 2019	534
Additions	765
Depreciation expense	(388)
Impact of foreign exchange translation	5
As at 30 June 2020	916
Liabilities
As at 1 July 2019	535
Additions	765
Disposals	-
Accretion of interest	25
Payments	(399)
Impact of foreign exchange translation	(4)
As at 30 June 2020	922
Current	441
Non-current	481
	922
The following are the amounts recognized in profit or loss:
Depreciation expense of right of use assets	388
Interest expense on lease liabilities	25
Expense relating to short-term and low value leases (included in
administrative expenses)	399
Total amount recognised in profit or loss	812

Notes to the financial statements For the year ended 30 June 2020

12. Property, Plant & equipment

	2020	2019
	$'000s	$'000s
Leasehold Land
At cost	33,415	33,799
Accumulated depreciation	(5,117)	(4,586)
	28,298	29,213
Leasehold buildings
At cost	10,292	10,281
Accumulated depreciation	(1,603)	(1,270)
	8,689	9,011
Land and buildings
At cost	15,400	15,089
Accumulated depreciation	(5,045)	(4,284)
	10,355	10,805
Strata title properties
At cost	1,732	1,694
Accumulated depreciation	(466)	(438)
	1,266	1,256
Plant and equipment
At cost	104,058	97,956
Accumulated depreciation and impairment	(69,209)	(67,318)
	34,849	30,638
Plant and equipment under lease
At cost	487	493
Accumulated depreciation	(404)	(372)
	83	121
Construction in progress	2,303	4,191
Total property, plant and equipment
At cost	167,687	163,503
Accumulated depreciation and impairment	(81,844)	(78,268)
Net carrying amount	85,843	85,235

Reconciliations

Reconciliations of the carrying amounts of property, plant and equipment at the beginning and end of the current financial year.

	2020	2019
	$'000s	$'000s
Leasehold Land
Carrying amount at beginning	29,213	29,007
Additions	-	-
Depreciation expense	(606)	(580)
Foreign exchange difference	(309)	786
	28,298	29,213

Notes to the financial statements For the year ended 30 June 2020

12. Property, Plant & equipment (continued)

	2020	2019
	$'000s	$'000s
Leasehold buildings
Carrying amount at beginning	9,011	8,584
Transfer from construction in progress	91	498
Additions	42	17
Disposals	-	-
Depreciation expense	(364)	(327)
Foreign exchange difference
	(91)	239
	8,689	9,011
Land and buildings
Carrying amount at beginning	10,805	10,787
Transfer from construction in progressDisposals	313-	764-
Depreciation expense	(763)	(746)
	10,355	10,805
Strata title propertiesCarrying amount at beginning	1,256	1,211
Depreciation expense	(19)	(18)
Foreign exchange difference	29	63
	1,266	1,256
Plant and equipment
Carrying amount at beginning	30,638	23,068
Transfer from construction in progress	3,712	11,837
Additions	6,728	88
Impairment	-	-
Disposals	(479)	(11)
Depreciation expense	(5,737)	(4,456)
Foreign exchange difference	(13)	112
	34,849	30,638
Plant and equipment under lease
Carrying amount at beginning	121	153
Additions	-	-
Depreciation expense	(38)	(36)
Foreign exchange difference	-83	4121
Construction in progress
Carrying amount at beginning	4,191	7,776
Additions	2,289	9,498
DisposalTransfers	-(4,116)	-(13,099)
Foreign exchange difference	(61)	16
	2,303	4,191

Notes to the financial statements For the year ended 30 June 2020

13. Goodwill

	2020	2019
	$'000s	$'000s
Carrying amount at the beginning	7,158	7,158
Impairment	(3,101)	-
	4,057	7,158

Goodwill acquired through business combination has been allocated to the Palm Oil CGU, which is also a reporting and operating segment for impairment testing. The net carrying amount of Goodwill at 30 June 2020 was $4.057 million (2019: $7.158 million) which includes an accumulated impairment charge of $3.101 million during the year (2019: nil).

14. Impairment of non-financial assets

The key assumptions used for assessing the recoverable amount of the Farming CGU are set out below. The recoverable value has been determined using the VIU methodology. The post-tax discount rates incorporate a risk-adjustment relative to the risks associated with the net post-tax cash flows being achieved, while the growth rate is based on market estimates of the long-term average industry growth rate.

	2020	2019
Discount rate (post-tax)	8.75%	8.75%
Inflation rate	2.3%	2.3%
Growth rate	2.3%	2.3%
Terminal value ($'000)	24,612	29,728
Headroom as a percentage of the CGU's net carrying value	-	5.4%

The recoverable amount of the Farming CGU has been determined using a value in use calculation using cash flow projections. The post-tax discount rates applied to cash flow projections is 8.75% (2019: 8.75%) and the cash flows are based on the financial budget approved by management for the upcoming year and for the following 4 years and a terminal value.

The calculation of value in use for the Farming CGU is most sensitive to the following assumptions:

• Crude Palm Oil ("CPO") short term and long term pricing forecasts
• Discount rate
• Extraction rate assumptions of CPO and Palm Kernel (PK)
• Growth rate estimates

CPO short term and long term pricing forecasts – Forecast pricing is based on published industry research.

Discount rate – Discount rates represent the current market assessment of the risks specific the Farming CGU, taking into consideration the time value of money and individual risks of the underlying assets that have not been incorporated in the cash flow estimates.

Extraction rate assumptions of CPO and PK – Extraction rates are based on average values achieved in the five years preceding the beginning of the budget period.

Growth rate estimates − Rates are based on published industry research.

With regard to the assessments of the value in use of the Farming CGU, as the carrying value has been impaired to its recoverable amount at 30 June 2020, any adverse movements in key assumptions may lead to further impairment. The Group has assessed the recoverable amounts of the CGU using a VIU calculation and considered potential downside scenarios in respect of the impact of the COVID-19 pandemic. The following represents reasonably possible changes in key assumptions for the Farming CGU impairment test and the impairment outcome:

Notes to the financial statements For the year ended 30 June 2020

14. Impairment of non-financial assets (continued)

Judgments of reasonably possible movements:	Impairment expenseHigher/(Lower)2020
CPO and PK extraction - 5 bps	$'000s1,022
CPO and PK extraction + 5 bps	(2,235)
Discount rate + 10 bps	583
Discount rate - 10 bps	(648)
CPO short term pricing - 10%	2,133
CPO short term pricing + 10%	(2,183)

15. Biological Assets

The Group grows oil palm plants to produce palm oil. The plantation is located in Malaysia. The Group is exposed to risks in respect of agricultural activity. During the year a total of 23,874 metric tonnes of fruit was produced.

The primary risk associated with this activity occurs due to the length of time between expending cash on planting and trees reaching production so that cash can be received from the sale of palm oil to third parties. The Group's strategy to manage this risk is to stage the replanting (20-30 year replanting cycle) to reduce the effect on the cash flow.

(a) Biological assets

	2020	2019
	$'000s	$'000s
Carrying amount at beginning of period	125	194
Production costs	1,881	2,027
Harvested during the period	(1,863)	(2,085)
Fair value adjustment	112	(73)
Effect of foreign exchange	(24)	62
Carrying amount at end of period	231	125

Biological assets consist of agricultural produce growing on bearer plants at reporting date.The fair value of biological assets, being the agricultural produce growing on bearer plants at reporting date are measured at their fair value less estimated point of sale costs at the point of harvest.

In determining the fair value at reporting date the following judgements were applied:

	2020	2019	2018
CPO Price (RM1 per tonne)	2,520	1,886	2,294
PK Price (RM per tonne)	1,376	1,091	1,743
Extraction rate (CPO)	19.00%	19.25%	19.00%
Extraction rate (PK)	6.00%	6.00%	6.00%

1. Malaysian Ringgit

An estimation of the quantum of fruit on trees and oil content was based on actual harvests post reporting date.

With regard to the estimation of the fair value of the biological asset, it has been classified as a level 3 in the fair value hierarchy being based on inputs that are not based on observable data. Management believes that no reasonably possible change in any of the above key assumptions would cause a material change in the fair value of the biological asset.

Notes to the financial statements For the year ended 30 June 2020

(b) Bearer plants (property, plant & equipment)

	2020	2019
	$'000s	$'000s
Carrying amount at beginning of period	6,153	6,670
Depreciation	(720)	(688)
Effect of foreign exchange	(42)	171
Carrying amount at end of period	5,391	6,153

16. Investments in joint ventures

The Group's interest in joint ventures are accounted for using the equity method in consolidated financial statements.

	2020$'000s	2019
		$'000s
Investments in joint ventures at cost	1,352	-
Share of joint venture losses	(37)	-
Share of reserves of joint ventures	-	-
Carrying amount of investments in joint ventures	1,315	-

The Group has 50% interest in Pacific Biofert Limited ("PBF"), a Biological Fertilizer company based in New Zealand. PBF manufacture and distribute a product that enhances phosphate solubility. The investment represents a further diversification into value added and technically advanced phosphate products.

Below summarises the financial information of the Group's investment in Pacific Biofert Limited.

	2020	2019
Summarised statement of financial position	$'000s	$'000s
Current assets	912	-
Non-current assets	338	-
Current liabilities	(1,397)	-
Non-current liabilities	(22)	-
Net assets	(169)	-
Group's of equity	(85)	-
Goodwill	1,005
Group's carrying amount of investment in PBF	920
Summarised statement of comprehensive income
Revenue	2,750	-
Expenses	(2,816)	-
Profit attributable to the members of PBF	(66)	-
Group's share of loss for the period	(33)	-

The Group also has a 49% interest in Goshawk Services Pty Ltd (a company incorporated in Australia), a 40% interest in Island Fresh Pty Ltd (a company incorporated in Australia) and a 50% interest in Christmas Island Development Australia Pty Ltd (a company incorporated in Australia) which are individually and in aggregate immaterial.

Notes to the financial statements For the year ended 30 June 2020

17. Investments in controlled entities

CI Resources Limited owns 100% of Phosphate Resources Limited which is incorporated in Australia.

(a) Information relating to subsidiaries

Information relating to controlled entities is set out below:

Name	Principal Activities	Country ofIncorporation		% Equity interest
			2020%	2019%
- Phosphate Resources Ltd	Mining	Australia	100	100
- CI Maintenance Services Pty Ltd (i)	Maintenance Services	Australia	100	100
- Phosphate Resources Properties Pty Ltd (i)	Properties	Australia	100	100
- Indian Ocean Stevedores Pty Ltd (i)	Stevedoring Services	Australia	100	100
- Phosphate Resources (Singapore) Pte Ltd (i)	Shipping Services	Singapore	100	100
- Indian Ocean Oil Company Pty Ltd (i)	Fuel Services	Australia	100	100
- Phosphate Resources Laos Pty Ltd (i)	Dormant	Australia	100	100
- Phosphate Resources Plantations Pty Ltd (i)	Dormant	Australia	100	100
- Phosphate Resources (Malaysia) Sdn Bhd (i)	Marketing Services	Malaysia	100	100
- Cheekah-Kemayan Plantation Sdn Bhd (i)	Palm Oil Estate,Milling and Sales	Malaysia	100	100

(i) These companies are wholly owned subsidiaries of Phosphate Resources Limited

18. Trade and other payables

	2020	2019
	$'000s	$'000s
Trade payables	11,101	13,289

Trade creditors are non-interest bearing and are normally settled on 30-60 terms. The carrying value of trade and other payables approximates the fair value thereof.

19. Interest bearing loans and borrowings

	2020	2019
	$'000s	$'000s
Current
Lease liabilities	455	13
Bank borrowings	8,430	1,404
	8,885	1,417
Non-current
Lease liabilities	495	29
Bank borrowings	10,300	11,824
	10,795	11,853
(a) Movement in bank borrowings
Opening balance at the beginning of the financial year	13,228	-
Drawdown	18,636	13,773
Repayment	(12,958)	(488)
Foreign currency exchange (gain)/loss	(176)	(57)
Closing balance at the end of the financial year	18,730	13,228

Notes to the financial statements For the year ended 30 June 2020

(b) Fair value

The carrying amount of the borrowings approximates their fair value as the borrowings are at floating interest rates which move in accordance with market rates. Details regarding interest rate risk and liquidity risk are disclosed in Note 31.

(c) Bank borrowings

The bank borrowing relates to a 5 year term loan which is secured by an all monies security held over properties in Cheekah Kemayan Plantations Sdn Bhd. Interest is payable at a rate of 1% per annum above the bank's cost of funds. The term loan is repayable in 60 monthly instalments. As at 30 June 2020 $11.69 million remained outstanding (2019:$13.23 million). Refer to Note 31 for details on liquidity risk.

Other borrowings relate to the working capital loan and foreign currency trade loan in Phosphate Resources (Malaysia) Sdn Bhd. The loans are secured by fixed and floating charge over the assets of the borrower and a corporate guarantee from the ultimate holding company. The working capital loan and foreign currency trade loan interest is payable at a rate of 1% per annum above the bank's cost of funds and 0.75% above the foreign currency rate respectively.

(d) Financing facilities available

At reporting date, the following financing facilities had been negotiated and were available**: 2020 2019**

Total facilities	$'000s36,554	$'000s17,028
Facilities utilised at reporting date	20,719	13,774
Facilities unused at reporting date	15,835	3,254

		2020$'000s	2019$'000s
Current
Employee entitlements		3,802	5,019
		3,802	5,019
Non-current
Redundancy	(a)	6,048	6,326
Employee entitlements		1,151	1,070
		7,199	7,396
Decommissioning	(b)	12,545	11,306
		19,744	18,702

(a) Provision for redundancy

The amounts employees are entitled to receive if made redundant in accordance with their employment agreements are fully provided. The redundancy provision decreased by a net amount of $278,000 during the year ended 30 June 2020 (2019: increase $1,000).

(b) Provision for decommissioning

Based on the Mining Lease Agreement between the Commonwealth Government and Phosphate Resources Limited a provision for decommissioning has been recognised for costs associated with:

• Demolition of all improvements specified for the removal of all debris resulting from demolition, removal of plant and equipment and leaving the leased land in a safe, clean and tidy condition at the expiry of the lease.

Estimates of the decommissioning obligations are based on anticipated technology and legal requirements and future costs, which have been discounted to their present value. In determining the decommissioning provision, the entity has assumed no significant changes will occur in the relevant Federal and State legislation in relation to demolition of such mines in the future.

Notes to the financial statements For the year ended 30 June 2020

		2020	2019
		$'000s	$'000s
(c)	Movement in provisions
	Provision for decommissioning:
	Carrying amount at the beginning of the financial year	11,306	10,898
	Increase in provision	374	108
	Change in net present value of provision:
	-(Credited)/Debited to profit or loss	865	300
	Carrying amount at the end of the financial year	12,545	11,306

21. Contributed equity

(a) Share capital		Number ofshares	$'000s
Ordinary shares – fully paid		115,581,107	72,160
Movements in ordinary share capitalDate	Details	Number ofshares	$'000s
1 July 2019	Opening balance	115,581,107	72,160
	Movement	-	-
30 June 2019/1 July 2019	Closing balance/Opening balance	115,581,107	72,160
	Movement	-	-
30 June 2020	Closing balance	115,581,107	72,160

Ordinary shares

Ordinary shares entitle the holder to participate in dividends and the proceeds on winding up of the company in proportion to the number of and amounts paid on the shares held. On a show of hands every holder of ordinary shares present at a meeting in person or by proxy, is entitled to one vote, and upon a poll each share is entitled to one vote.

Dividends

Dividends totaling 1.5 cents per share (2019: 6.5 cents per share) have been paid during the year.

22. Reserves

	2020	2019
	$'000s	$'000s
Foreign exchange translation reserve	3,321	4,455
Fair value reserve	(6,211)	(3,951)
Acquisition reserve	8,499	8,499
	5,609	9,003

Foreign currency translation reserve

Exchange differences arising on translation of the foreign controlled entity are taken to the foreign currency translation reserve. The reserve is recognised in profit and loss when the net investment is disposed of.

Fair value reserve

Fair value differences arising from financial instruments classified as Fair Value through Other Comprehensive Income (FVOCI) under AASB 9 are taken to this reserve. Fair value gains and losses are presented in OCI and there is no subsequent reclassification of fair value gains and losses to profit and loss on the derecognition.

Acquisition reserve

Any gain or loss arising on acquisition of non-controlling interest of subsidiaries is recognized in this reserve.

Notes to the financial statements For the year ended 30 June 2020

Movements in reserves

	2020	2019
	$'000s	$'000s
Foreign exchange translation reserve
Balance at the beginning of the year	4,455	3,030
Foreign exchange on translation of financial report	(1,134)	1,425
Balance at the end of the period	3,321	4,455
Fair value reserve
Balance at the beginning of the year	(3,951)	-
Movement for the year	(2,260)	(3,951)
Balance at the end of the period	(6,211)	(3,951)
Non-controlling interest acquisition reserve
Balance at the beginning of the year	8,499	8,499
Movement for the year	-	-
Balance at the end of the period	8,499	8,499
23. Retained earnings
	2020	2019
	$'000s	$'000s
Accumulated profit at the beginning of the year	114,143	112,985
Net profit attributable to members of CI Resources Limited	32	8,671
Dividends paid	(1,734)	(7,513)
Accumulated profit at the end of the financial year	112,441	114,143
24. Key management personnel disclosures
(a) Key management personnel compensation
	2020	2019

	$'000s	$'000s
Short term employee benefits	2,035	2,384
Post employment benefits	181	209
	2,216	2,593

(b) Loans to key management personnel

There are no loans made to directors or other key management personnel of CI Resources Limited.

(c) Other transactions with key management personnel

• (i) Mr Lai Ah Hong is the owner of property MQ 717 on Christmas Island leased to Phosphate Resources Ltd for three years ending 10 April 2021. Mr Lai Ah Hong received a total rent of $26,000 during the year (2019: $27,607).
• (ii) Mr Lai Ah Hong is the owner of property 86 Unit B, Block 790 Lam Lok Road, Drumsite, Christmas Island leased to CI Maintenance Services Pty Ltd. Mr Lai Ah Hong received a total rent of $24,398 during the year (2019: $24,206).
• (iii) Mr Adrian Gurgone is the director of Ethical Accounts. Ethical Accounts provided consultancy services for the Group totaling $46,200 (2019: $Nil) during the year.

Notes to the financial statements For the year ended 30 June 2020

25. Remuneration of auditors

	2020	2019
	$'000s	$'000s
Amounts received or due and receivable by EY (Australia) for:
- audit of the financial report of the parent entity and the consolidated
entity	125	157
- review of the half year financial report of the consolidated entity	60	30
	185	187
Amounts received or due and receivable by related practices of EY
(Australia) for the audit of the financial statements	90	78
	90	78
Amounts received or due and receivable by auditors other than EY for:
- an audit or review of the financial report of a controlled entity	-	-
	275	265

26. Contingent liabilities

There are no contingent assets or liabilities as at the date of this report.

27. Commitments for expenditure

The Group entered into lease contract as a means of providing residential accommodation, office premises and office equipment. Short term lease contracts amounting to $77,869 have not been recognised on balance sheet due to their short term nature.

Leases	2020		2019
	MinimumLeasePayments	Present Valueof LeasePayments	MinimumLeasePayments	Present Valueof LeasePayments
CONSOLIDATED	$'000s	$'000s	$'000s	$'000s
Within one year	78	75	15	13
After one year but not more than five
years	-	-	30	29
Total minimum lease payments	78	75	45	42
Less amounts representing future
finance charges	(3)	-	(3)	-
Present value of minimum lease payments	75	75	42	42

• (a) The Company provides a guarantee and indemnity to the Commonwealth Government of Australia (Commonwealth) to ensure the performance of Indian Ocean Oil Company Pty Ltd's obligations under the terms of a 20 year fuel lease arrangement.
• (b) The Company has committed to undertake various environmental management targets and objectives as detailed in the Christmas Island Phosphates Environmental Management Plan.
• (c) The Company has provided a bank guarantee of $2 million to the Commonwealth Government under the terms of the Mining Lease Agreement.
• (d) The Company has capital commitments of $0.145 million (2019: $1,135 million) for items of plant on order but not yet delivered.

Notes to the financial statements For the year ended 30 June 2020

28. Related party transactions

Directors and other key management personnel

Disclosures relating to directors and other key management personnel are set out in note 24.

Controlling entities

The ultimate parent entity in the group is CI Resources Limited.

Ownership interests in related parties

Interests held in related parties are set out in note 17.

29. Reconciliation of profit after income tax to net cash outflow from operating activities

	2020$'000s	2019$'000s
Operating profit after income tax	32	8,671
Adjustment for non-cash items
Accretion of decommissioning provision	1,153	408
Net loss/(gain) on disposal of assets	311	(14)
Change in fair value of biological assets	(112)	73
Share of loss from joint ventures	37	-
Expected credit loss	292	-
Impairment of financial asset	36	-
Impairment of goodwill	3,101	-
Depreciation	8,635	6,851
Unrealised foreign exchange (gain) / loss	(2,249)	(1,531)
Change in operating assets and liabilities
(Increase)/decrease in trade and other receivables	168	15,561
Movement in deferred tax balances	(1,160)	(1,597)
(Increase)/decrease in inventories	3,743	(12,892)
Increase/(decrease) in trade creditors and accruals	(2,188)	(644)
Increase/(decrease) in provisions	(1,328)	(486)
(Increase)/decrease in prepayments	(733)	232
(Increase)/decrease in tax receivable	(543)	2,307
Net cash inflow from operating activities	9,195	16,939

Notes to the financial statements For the year ended 30 June 2020

30. Financial Instruments

The Directors have concluded that the fair value of financial assets and financial liabilities are not materially different to carrying values. The methods and assumptions used to estimate the fair value of financial instruments were:

• Receivables/payables Due to the short term nature of these financial rights and obligations, and/or market interest received/paid, their carrying values are estimated to represent their fair values.
• Derivatives The fair values of forward currency contracts are calculated by reference to current forward exchange rates for contracts with similar maturity profiles.
• Bank loan All the bank loans of the Group are interest bearing with floating interest rates which move in accordance with the market interest rates. Therefore the fair value of the bank loans approximates their carrying value.
• Term deposits The carrying values of term deposits represent the fair values.
• Capital notes These investments are fair valued by reference to published bid prices.
• Listed shares These investments are designated at fair value through OCI and fair valued by reference to the published bid prices.

(a) Forward currency contracts – Financial assets at fair value through profit or loss

The Group has entered into forward exchange contracts which are economic hedges but do not satisfy the requirements for hedge accounting.

	Notional amounts		$AUD			Average exchange rate
	30 June 2020$'000s	30 June 2019$'000s	30 June2020	30 June2019
Sell US$/buy Australian $
Consolidated
Sell US$ maturity 0 to 12 months	27,138	46,143	0.6817	0.7043
Sell US$ maturity 12 to 24 months	17,264	-	0.6372	-

These contracts are fair valued by comparing the contracted rate to the forward market rates for contracts with the same remaining term, discounted at a market interest rate. All movements in fair value are recognised in profit or loss in the period they occur. The net fair value loss on foreign currency derivatives during the year was $0.491 million for the Group (2019: net gain of $0.304 million).

(b) Capital notes – Financial assets at fair value through profit or loss

During the period, the Group has invested in capital notes with various institutions measured at fair value through profit or loss financial assets.

		Fair Value $ AUD
	30 June 2020$'000s	30 June 2019$'000s
Capital notesAustralian capital notes	956	992

Initial measurement of these financial assets comprises fair value and subsequent measurement at fair value. The movement in fair value in each period is recognised in profit or loss. The net fair value losses on capital notes during the financial year were $36,000 (2019: gain of $27,000) for the Group.

(c) Listed Shares – Fair value through Other Comprehensive Income

During the period, the Group had a total of 13,018,700 ordinary shares in United Malacca Bhd, a publicly listed company in Malaysia. United Malacca Bhd is a Malaysian based palm oil company involved in both the cultivation of oil palms and palm oil milling operations. The Group has elected to account for the instruments under the fair value through other comprehensive income method due to the Group's long term strategic plan.

Notes to the financial statements For the year ended 30 June 2020

Fair Value $ AUD

	30 June 2020$'000s	30 June 2019$'000s
Listed sharesMalaysian listed shares	20,831	23,401

The Company classified the fair value of the financial instruments according to the following fair value hierarchy based on the amount of observable inputs used to value the instruments:

The three levels of the fair value hierarchy are:

• Level 1 Values based on unadjusted quoted prices available in active markets for identical assets or liabilities as of the reporting date.
• Level 2 Values based on inputs, including quoted prices, time value and volatility factors, which can be substantially observed or corroborated in the marketplace. Prices in Level 2 are either directly or indirectly observable as of the reporting date.
• Level 3 Values based on prices or valuation techniques that are not based on observable market data.

30 June 2020	Level 1'000	Level 2'000	Level 3'000	Total'000
Forward currency contracts – classified as
FVTPL	-	1,363	-	1,363
Capital notes – classified as FVTPL	956	-	-	956
Listed shares – classified as FVOCI	20,831	-	-	20,831
	21,787	1,363	-	23,150
30 June 2019	Level 1	Level 2	Level 3	Total
	'000	'000	'000	'000
Forward currency contracts – classified as
FVTPL	-	48	-	48
Capital notes – classified as FVTPL	992	-	-	992
Listed shares – classified as FVOCI	23,401	-	-	23,401
	24,393	48	-	24,441

Transfer between categories:

There were no transfers between levels during the year.

31. Financial Risk Management Objectives and Policies

The Group's principal financial instruments comprise receivables, payables, leases, cash and short-term deposits, long-term deposits, interest bearing loans and borrowings, foreign exchange derivatives, capital notes and listed equity investments.

Market (including foreign exchange, commodity price and interest rate risk), liquidity and credit risk (including foreign exchange, commodity price and interest rate risk) arise in the normal course of the Group's business.

The Group manages its exposure to key financial risks, including interest rate, currency and commodity risk in accordance with the Group's risk management procedures. The overall objective of these procedures is to:

• Ensure that net cash flows are sufficient to meet all financial commitments as and when they fall due.
• Support the delivery of the Group's financial targets whilst protecting future financial security.
• Minimise the potential adverse effects resulting from volatility on financial markets.

The Group continually monitors its forecast financial position against these criteria.

Notes to the financial statements For the year ended 30 June 2020

It is, and has been throughout the period under review, Group policy that no speculative trading in financial instruments be undertaken.

(i) Interest rate risk

Interest rate risk on cash and term deposits is not considered to be a material risk due to the short term nature of these financial instruments.

The interest rates for borrowings are variable and there is no material risk for interest bearing assets or liabilities.

At 30 June 2020, had the interest rate moved, as illustrated in the table below, with all other variables held constant, post-tax profit and equity would have been affected as follows:

Judgments of reasonably possible movements:	Post tax profit and equityHigher/(Lower)
	2020$'000s	2019$'000s
Consolidated
Interest rate + 10%	10	14
Interest rate - 10%	(10)	(14)

(ii) Liquidity Risk

The Group's liquidity position is managed to ensure that sufficient funds are available to meet its financial commitments in a timely and cost effective manner.

Management monitors the Group's liquidity reserve on the basis of expected cash flow. The table below reflects a balanced view of cash inflows and outflows and shows the implied risk based on those values. Trade payables and other financial liabilities originate from the financing of assets used in the Group's ongoing operations. These assets are considered in the Group's overall liquidity risk.

Management continually reviews the Group liquidity position including cash flow forecasts to determine the forecast liquidity position and maintain appropriate liquidity levels.

Maturity analysis of financial assets and liabilities based on contractual maturity

Year ended 30 June 2020	≤6months	6-12months	1-5 years	>5 years	Total
	$'000	$'000	$'000	$'000	$'000
Financial assets
Cash	44,149	-	-	-	44,149
Trade and other receivables	28,418	-	-	-	28,418
Term deposits	6,877	-	-	-	6,877
Other financial assets	28,410	-	-	-	28,410
Foreign exchange contract (gross settled)
Inflow	9,442	17,696	17,264	-	44,402
(Outflow)	(9,470)	(17,496)	(16,073)	-	(43,039)
Net foreign exchange contracts	(28)	200	1,191	-	1,363
Financial liabilities
Trade and other payables	11,101	-	-	-	11,101
Interest bearing loans and borrowings	7,742	688	10,300	-	18,730
Lease liabilities	227	228	495	-	950

Notes to the financial statements For the year ended 30 June 2020

Year ended 30 June 2019	≤6	6-12	1-5 years	>5 years	Total
	months$'000	months$'000	$'000	$'000	$'000
Financial assets
Cash	39,726	-	-	-	39,726
Trade and other receivables	28,586	-	-	-	28,586
Term deposits	7,331	-	-	-	7,331
Other financial assets	32,350	-	-	-	32,350
Foreign exchange contract (gross settled)
Inflow	17,595	17,770	10,778	-	46,143
(Outflow)	(17,784)	(17,713)	(10,598)	-	(46,095)
Net foreign exchange contracts	(189)	57	180	-	48
Financial liabilities
Trade and other payables	13,289	-	-	-	13,289
Interest bearing loans and borrowings	702	702	11,824	-	13,228
Lease liabilities	6	7	29	-	42

(iii) Credit risk

Credit risk is the risk that a contracting entity will not complete its obligation under a financial instrument that will result in a financial loss to the Group. The carrying amount of financial assets represents the maximum credit exposure.

Financial instruments that potentially subject the consolidated entity to concentrations of credit risk consist principally of cash deposits and receivables. The Group minimizes its exposure to credit risk by placing its cash deposits and derivatives with high credit-quality financial institutions where possible. Term deposits typically have an original maturity of three months or less and other bank deposits are on call. These financial assets are considered to have low credit risk. Receivables balances are monitored on an ongoing basis. At reporting date there were debtors amounting to $4.0 million (2019: $4.4million) that were past due, but not considered impaired. Based on the Group's assessment the exposure to future credit loss is not significant based on the ECL procedures performed by the Group.

(iv) Derivative instruments and foreign currency risk

The Group's future revenues are exposed to movements in foreign exchange rates, particularly the US dollar/Australian dollar rate. The Group may from time to time enter into foreign exchange derivative instruments to manage this exposure.

The Group has, as outlined in note 30, forward currency contracts designated as held for trading that are subject to fair value movements through profit or loss as foreign exchange rates move.

At 30 June 2020, had the Australian Dollar moved, as illustrated in the table below, with all other variables held constant, post-tax profit and equity would have been affected as follows:

Judgments of reasonably possible movements:	Post tax profit and equityHigher/(Lower)
	2020$'000s	2019$'000s
Consolidated
AUD/USD + 10%	(4,037)	(4,193)
AUD/USD - 10%	4,934	5,124

Management believes the balance date risk exposures are representative of the risk exposure inherent in the financial instruments.

Notes to the financial statements For the year ended 30 June 2020

Significant assumptions used in the foreign currency exposure sensitivity analysis include:

• Reasonably possible movements in foreign exchange rates were determined based on a review of the last two years historical movements.
• The net exposure at balance date is representative of what the Group was and is expecting to be exposed to in the next twelve months from balance date.

Capital risk management

The Group's objectives when managing capital are to safeguard their ability to continue as a going concern, so that they can continue to provide shareholders and stakeholders in the future and to maintain an optimal capital structure to reduce the cost of capital.

Management are constantly adjusting the capital structure as suitable. As the market is constantly changing, management may change the amount of dividends paid to shareholders, return capital to shareholders or issue new shares.

Management have no current plans to issue further shares on the market.

Security price risk

The Group's listed and non-listed equity investments are susceptible to market price risk arising from uncertainties about future values of the investment securities. The Group manages the equity price risk through diversification and by placing limits on individual and total equity instruments. Reports on the equity portfolio are submitted to the Group's senior management on a regular basis. The Group's Board of Directors reviews and approves all equity investment decisions. At 30 June 2020, had the security price moved, as illustrated in the table below, with all other variables held constant, equity would have been affected as follows:

Judgments of reasonably possible movements:	Equity
		Higher/(Lower)
	2020	2019
	$'000s	$'000s
Consolidated
Security price + 10%	2,083	2,340
Security price - 10%	(2,083)	(2,340)
32. Parent entity information
	2020	2019
	$'000s	$'000s
Current assets	17,055	14,127
Total assets	84,034	81,069
Current liabilities	101	46
Total liabilities	101	46
Issued capital	72,160	72,160
Retained earnings	11,773	8,863
Total shareholders' equity	83,933	81,023
Profit of the parent entity	4,644	11,626
Total comprehensive income	4,644	11,626

The parent entity has provided guarantees in relation to the debts of certain of its subsidiaries.

The parent has no contingent liabilities as at date of this report.

The Parent Entity has no contractual commitments for the acquisition of property, plant or equipment.

Notes to the financial statements For the year ended 30 June 2020

33. Segment reporting

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

The Group has identified its operating segments to be Mining and Farming based on the different operating businesses within the Group. Discrete financial information about each of these operating segments is reported to the chief operation decision makers on a monthly basis.

The Mining operating segment primarily involves mining, processing and sale of phosphate rock, phosphate dust and chalk.

The Farming operating segment primarily involves oil palm cultivation and palm oil processing.

The accounting policy used by the Group in reporting segments internally is the same as those contained in Note 2 to the accounts.

	Year ended 30 June 2020
	Mining	Farming	Unalloc./Elimination	Total
	$'000	$'000	$'000	$'000
Revenue
Revenue	68,540	29,597	-	98,137
Interest income	292	245	141	678
Dividend income	-	369	-	369
Rendering of services	65	-	11,9441	12,009
Fuel sales	-	-	14,3232	14,323
Total segment revenue	68,897	30,211	26,408	125,516
Result
Segment net operating profit/(loss) after tax
(attributable to parent)	(668)	(497)	1,197	32
Depreciation and amortisation	5,089	2,210	1,336	8,635
Finance cost	1,285	644	18	1,947
Impairment of non-financial assets	-	3,101	-	3,101
Income tax expense	(921)	616	488	183
Assets and Liabilities
Segment assets	155,206	61,212	33,584	250,002
Segment liabilities	39,535	17,595	2,662	59,792
Other disclosure
Capital expenditure	7,260	1,300	499	9,059

1 Relates to the services income derived by a wholly-owned subsidiary CI Maintenance Services Pty Ltd.

2 Relates to fuel and oil sales derived by a wholly-owned subsidiary Indian Ocean Oil Company Pty Ltd.

Notes to the financial statements For the year ended 30 June 2020

	Year ended 30 June 2019
	Mining	Farming	Unalloc./Elimination	Total
	$'000	$'000	$'000	$'000
Revenue
Revenue	72,795	37,960	-	110,755
Interest income	408	317	227	952
Rendering of services	-	-	8,833	8,833
Fuel sales	-	-	15,232	15,232
Total segment revenue	73,203	38,277	24,292	135,772
Result
Segment net operating profit after tax
(attributable to parent)	6,765	360	1,546	8,671
Depreciation and amortisation	3,873	2,086	892	6,851
Finance cost	408	-	237	645
Income tax expense	3,046	778	693	4,517
Assets and Liabilities
Segment assets	153,579	65,080	34,343	253,002
Segment liabilities	34,489	18,057	5,150	57,696
Other disclosure
Capital expenditure	7,036	973	1,594	9,603

Revenue from external customers by geographical locations is detailed below:

	2020	2019
	$'000s	$'000s
Australia	73,952	77,007
Malaysia	51,369	58,765
Singapore	195	-
	125,516	135,772

Major customers

The Group has a number of customers to which it provides the products. Revenue within the consolidated entity from three customers amounted to $29.3 million in the mining segment. No other customers had sales exceeding 10% of revenue.

	2020	2019
	$'000s	$'000s
Non-Current Assets by geographical regions
Australia	58,189	66,594
Malaysia	69,322	72,966
Singapore	7,582	1,288
	135,093	140,848

34. Subsequent Events

No matter or circumstance has arisen that has significantly affected, or may significantly affect, the operations of the consolidated entity and its controlled entities, the results of those operations or the state of affairs of the consolidated entity and its controlled entities in subsequent years that is not otherwise disclosed in this report or the consolidated financial statements.

Directors' Declaration For the year ended 30 June 2020

In accordance with a resolution of the Directors of CI Resources Limited, I state that:

• 1. In the opinion of the directors:
  • (a) The financial statements and notes of CI Resources Limited for the year ended 30 June 2020 are in accordance with the Corporations Act 2001, including:
    • (i) giving a true and fair view of the consolidated entity's financial position as at 30 June 2020 and of its performance, for the year ended on that date; and

(ii) complying with Accounting Standards and Corporations Regulations 2001;

• (b) the financial statements and notes also comply with International Financial Reporting Standards as disclosed in note 2; and
• (c) there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable;
• 1. This declaration has been made after receiving the declarations required to be made to the directors by the chief executive officer and the chief financial officer in accordance with section 295A of the Corporations Act 2001 for the financial year ended 30 June 2020.

On behalf of the board

David Somerville Lai Ah Hong Chairman Managing Director

Perth, Western Australia 28 August 2020

Independent audit report to the members

Ernst & Young 11 Mounts Bay Road Perth WA 6000 Australia GPO Box M939 Perth WA 6843 Tel: +61 8 9429 2222 Fax: +61 8 9429 2436 ey.com/au

Independent auditor's report to the Members of CI Resources Limited

Report on the Audit of the Financial Report

Opinion

We have audited the financial report of CI Resources Limited (the Company) and its subsidiaries (collectively the Group), which comprises the consolidated statement of financial position as at 30 June 2020, the consolidated statement of comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the year then ended, notes to the financial statements, including a summary of significant accounting policies, and the directors' declaration.

In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act 2001, including:

• a) giving a true and fair view of the consolidated financial position of the Group as at 30 June 2020 and of its consolidated financial performance for the year ended on that date; and
• b) complying with Australian Accounting Standards and the Corporations Regulations 2001.

Basis for Opinion

We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Report section of our report. We are independent of the Group in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board's APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial report of the current year. These matters were addressed in the context of our audit of the financial report as a whole, and in forming our opinion thereon, but we do not provide a separate opinion on these matters. For each matter below, our description of how our audit addressed the matter is provided in that context.

Independent audit report to the members

We have fulfilled the responsibilities described in the Auditor's Responsibilities for the Audit of the Financial Report section of our report, including in relation to these matters. Accordingly, our audit included the performance of procedures designed to respond to our assessment of the risks of material misstatement of the financial report. The results of our audit procedures, including the procedures performed to address the matters below, provide the basis for our audit opinion on the accompanying financial report.

Impairment Assessment - Farming Cash Generating Unit

As required by Australian Accounting Standards, the Group assesses at the end of each reporting period whether there are any triggers indicating that an asset may be impaired. Goodwill and indefinite life intangibles are assessed for impairment at least annually. At 30 June 2020, the Group held goodwill in relation to the Farming cash generating unit (CGU).

As outlined in Note 14 of the financial report, the recoverable amount of the Farming CGU has been determined using a value in use (VIU) calculation using cash flow projections, which required the Group to exercise judgement in determining the key assumptions. These assumptions are based on internal factors (such as the budget and forecast) and external market data (including commodity price and inflation rates).

An impairment charge of $3.1 million before tax, relating to goodwill was recognised as disclosed in Note 13.

We considered this to be a key audit matter due to the amount of the Farming CGU relative to total assets of the Group, and the significant judgments and assumptions involved in the impairment test.

Key assumptions, judgements and estimates applied in the Group's impairment assessment for the Farming CGU are set out in Note 14.

Why significant How our audit addressed the key audit matter

Our audit procedures included the following:

• Assessing the method used by the Group to calculate the recoverable amount of the Farming CGU using a VIU model for consistency with the requirements of Australian Accounting Standards.
• Testing the mathematical accuracy of the impairment model. Assessing key forecast assumptions such as projected growth, price, cost inflation and discount rates with reference to externally observable market data and involvement from our valuation specialists.
• Evaluating the Group's sensitivity analysis, which considered the impact of reasonably possible changes in key assumptions on the calculated recoverable amount of the CGU.
• Assessing the adequacy of impairment and related disclosure in Note 14 to financial report.

Independent audit report to the members

Recoverability of Debtors

Why significant How our audit addressed the key audit matter At outlined in Note 8 of the financial report, at 30 June 2020 the Group had trade debtors totaling $26.6 million, including $3.5 million that were past due, but not considered impaired. The recoverability of these debtors was considered a key audit matter given their value and the degree of judgement required by management in assessing the excepted credit loss of past due debtors. Our audit procedures included the following: including: • Assessing the Group's process for measuring the expected credit loss and recoverability of its trade debtors. • Consideration of the contractual terms of its trade debtor arrangement. • Obtaining positive confirmations from trade

Group.

• Considering past payment practices of the debtors, their credit-worthiness and any payments received subsequent to year end.

debtors as to the amounts owed to the

• Assessing the adequacy of the disclosures concerning trade debtors in Note 8 to the Group's financial report.

Information Other than the Financial Report and Auditor's Report Thereon

The directors are responsible for the other information. The other information comprises the information included in the Company's 2020 Annual Report, but does not include the financial report and our auditor's report thereon.

Our opinion on the financial report does not cover the other information and accordingly we do not express any form of assurance conclusion thereon, with the exception of the Remuneration Report and our related assurance opinion.

In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or otherwise appears to be materially misstated.

If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of the Directors for the Financial Report

The directors of the Company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error.

Independent audit report to the members

In preparing the financial report, the directors are responsible for assessing the Group's ability to continue as a going concern, disclosing, as applicable, matters relating to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or to cease operations, or have no realistic alternative but to do so.

Auditor's Responsibilities for the Audit of the Financial Report

Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report.

As part of an audit in accordance with the Australian Auditing Standards, we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group's internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.
• Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial report or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Group to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial report, including the disclosures, and whether the financial report represents the underlying transactions and events in a manner that achieves fair presentation.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the financial report. We are responsible for the direction, supervision and performance of the Group audit. We remain solely responsible for our audit opinion.

Independent audit report to the members

We communicate with the directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide the directors with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate threats or safeguards applied.

From the matters communicated to the directors, we determine those matters that were of most significance in the audit of the financial report of the current year and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Report on the Audit of the Remuneration Report

Opinion on the Remuneration Report

We have audited the Remuneration Report included in pages 15 to 19 of the directors' report for the year ended 30 June 2020.

In our opinion, the Remuneration Report of CI Resources Limited for the year ended 30 June 2020, complies with section 300A of the Corporations Act 2001.

Responsibilities

The directors of the Company are responsible for the preparation and presentation of the Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards.

Ernst & Young

Darryn Hall Partner Perth 28 August 2020

ASX Additional Information

Additional information required by the Australian Securities Exchange Limited Listing Rules and not disclosed elsewhere in this report.

SHAREHOLDINGS

Substantial shareholders

The following substantial shareholders have lodged notices with the Company as at 28 July 2020:

Holders	Ordinary shares
Keen Strategy Sdn Bhd	12,600,000
Prosper Trading Sdn Bhd	11,616,000
Destinasi Emas Sdn Bhd	7,437,410

Class of shares and voting rights

At 28 July 2020 there were 436 holders of ordinary shares on the Company. The voting rights attaching to the ordinary shares are:

• On a show of hands, every person present who is a shareholder or a proxy, attorney or representative of a shareholder has one vote; and
• On a poll, every person present who is a shareholder or a proxy, attorney or representative of a shareholder shall, in respect of each fully paid share held by him, or in respect of which he is appointed a proxy, attorney or representative, have one vote for the share, but in respect of partly paid shares, shall have a fraction of a vote for each partly paid share. The fraction shall be equivalent to the proportion which the amount paid is of the total amounts paid and payable, excluding amounts credited, provided that the amounts paid in advance of a call are ignored when calculating a true portion.

Distribution of share holders

		Ordinary
Category		shares
1 -	1,000	98
1,001 -	5,000	68
5,001 -	10,000	89
10,001 -	100,000	63
100,001 -	and over	118
		436

There were 88 holders of less than a marketable parcel of ordinary shares.

On-market buy back

There is no current on-market buy back.

Restricted securities

The Company does not have any restricted securities.

ASX Additional Information

Unquoted securities

The Company does not have any unquoted securities

Twenty largest holders of ordinary shares (as at 28 July 2020)

	Ordinary Shares
Holder name	Number	%
CITICORP NOMINEES PTY LIMITED	34,731,179	30.05
KEEN STRATEGY SDN BHD	12,600,000	10.90
PROSPER TRADING SDN BHD	11,616,000	10.05
MR TEO SEE KHIANG WILLY	3,565,681	3.09
KIM TEE TEE	3,163,550	2.74
MR THEBBAN RAMANATHAN	2,420,933	2.09
HAFIZ MASLI	2,015,000	1.74
KLUANG PTY LTD	1,683,988	1.46
MS MEE YUEN YONG	1,641,572	1.42
LIP HIAN TEE	1,410,500	1.22
HENDRY LEE	1,350,050	1.17
CHEE ENG LIM	1,249,300	1.08
YAN PEY TAN	1,249,300	1.08
LIP JEN TEE	1,229,150	1.06
MR RAMANATHAN E S KRISHNAN	1,136,543	0.98
MR AH HONG LAI + MS WAI CHING LEE	1,013,989	0.88
MS WAI FUN LEE	886,500	0.77
C & H LAI SUPER PTY LTD	870,875	0.75
CHAIN YEE TEE	826,150	0.71
CHIN ENG LIM	806,000	0.70
	85,466,260	73.94

Other information

CI Resources Limited, incorporated and domiciled in Australia, is a publicly listed company limited by shares.

The Company's shares are quoted on the Australian Securities Exchange.