PRL GLOBAL LTD — Interim / Quarterly Report 2021

Feb 25, 2021

APPENDIX 4D – HALF YEAR REPORT

PERIOD ENDED 31 DECEMBER 2020

CI RESOURCES LIMITED AND ITS CONTROLLED ENTITIES ACN 006 788 754

Reporting Period

This information should be read in conjunction with the 30 June 2020 annual financial report.

Current reporting period: 31 December 2020 Previous corresponding period: 31 December 2019

Results for announcement to the market

	31 Dec 2020 $’000’s	31 Dec 2019 $’000’s	% Change
Revenue from continuing operations	76,478	68,840	11.1%
Net profit for the period	6,146	2,575	138.7%
Profit from ordinary activities after tax attributable to members	6,146	2,575	138.7%
Total comprehensive income for the period attributable to members	4,791	3,901	22.8%

Earnings Per Share

	31 Dec 2020	31 Dec 2019
Basic and Diluted	5.31 cents	2.23 cents

Dividends

Dividends totalling Nil cents per share have been paid during the half year ended 31 December 2020. The Directors recommend the payment of an interim dividend of 2 cents per share.

Date the interim dividend is payable 22 April 2021 Record date to determine entitlements to the dividend 25 March 2021 Date interim dividend was declared 26 February 2021

APPENDIX 4D – HALF YEAR REPORT (Continued)

PERIOD ENDED 31 DECEMBER 2020

CI RESOURCES LIMITED AND ITS CONTROLLED ENTITIES ACN 006 788 754

Net Tangible Asset Backing Per Security

	31 Dec 2020	31 Dec 2019
Fully paid ordinary shares on issue at balance date	115,581,107	115,581,107
Net tangible asset backing per issued ordinary share as at balance date*	168.7 cents	164.4 cents

• For the purposes of calculating the net tangible asset backing per issued ordinary share as at balance date right of use assets recognised under AASB 16 have been excluded

Additional Appendix 4D disclosure requirements can be found in the directors’ report and the 31 December 2020 half year report and accompanying notes.

Significant changes in the state of affairs of the Company

No significant changes took place during the period in the state of affairs of the consolidated entity.

Compliance Statement

The report is based on financial statements reviewed by the auditor, a copy of which is attached.

For and on behalf of the directors:

David Somerville Director

Dated: 26 February 2021

CI Resources Limited

ACN 006 788 754

Half Year Report For the half-year ended 31 December 2020

CI Resources Limited ACN 006 788 754

Contents	Page
Directors' report	3
Auditor’s independence declaration	5
Half-year financial statements	6
Directors' declaration	18
Independent review report to the members	19

2

Half-Year Report – 31 December 2020

CI RESOURCES LIMITED

Directors’ report

Your directors present their half year report on the consolidated entity (“Group”) consisting of CI Resources Limited (“CII” or “Company”) and the entities it controlled at the end of, or during, the half-year ended 31 December 2020.

Directors

The following persons were directors of CI Resources Limited for the whole of the half-year and up to the date of this report, unless otherwise stated:

Mr David Somerville Mr Lai Ah Hong Dato’ Sri Tee Lip Sin Mr Tee Lip Jen Mr Adrian Gurgone Dato’ Sri Kamaruddin bin Mohammed

Dividends

The Directors propose paying a fully franked interim dividend of 2 cents per share issued with the record date being set at 19 March 2021 with payment to be made on the 16 April 2021.

Review of operations

The Consolidated Entity is reporting a net profit for the period of $6.146M for the half-year ended 31 December 2020 (31 December 2019: $2.575M).

Impact of COVID-19

As previously reported the COVID-19 pandemic has impacted our business in this reporting period, however the commercial drivers in our markets are recovering rapidly.

Financial Results

The Company is starting to see improving market conditions in the 2021 financial year, with phosphate and fertiliser sales volumes of approximately 290,000 tonnes for the half year, compared with 245,000 tonnes for the same period last year. This has been a result of improved Crude Palm Oil prices – from historical lows leading up to the COVID-19 lockdowns, to recent historical highs, which has generated greater demand for fertilisers across the market.

Consistent with the Group’s strategic plan, the Company has established a joint venture with a major Singapore based fertiliser trader which will increase the distribution capacities for the Company in the region.

The Company’s “on Christmas Island” diversification strategy has also contributed strong results to our profitability for the period.

3

Half-Year Report – 31 December 2020

CI RESOURCES LIMITED

Directors’ report

Earnings per share Basic earnings per share	December 2020 Cents December 2019 Cents
	5.31 2.23

Auditor’s Independence Declaration

A copy of the auditor’s independence declaration as required under section 307C of the Corporations Act 2001 is set out on page 5.

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 Corporation (Rounding in Financial/Directors’ Reports) Instrument 2016/191 . The Company is an entity to which the Class Order applies.

Auditor

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

This report is made in accordance with a resolution of the directors.

D Somerville Chairman Perth, Western Australia

26 February 2021

4

Half-Year Report – 31 December 2020

CI RESOURCES LIMITED

AUDITOR’S INDEPENDENCE DECLARATION

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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 review of the half-year financial report of CI Resources Limited for the half-year ended 31 December 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 relation to the review ; and

• b. No contraventions of any applicable code of professional conduct in relation to the review.

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

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Ernst & Young

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R J Curtin Partner 26 February 2021

A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation

5

Half-Year Report – 31 December 2020

CI RESOURCES LIMITED

Consolidated Statement of Comprehensive Income For the half-year ended 31 December 2020

Notes	Consolidated 31 December 2020 $’000s 31 December 2019 $’000s
Revenue 3a Cost of sales 3b Gross Profit Other income 3c Finance costs 3d Other expenses 3e Share of (loss) / profit in joint ventures Profit before income tax Income tax expense Net profit for the period Other comprehensive income Items that may be reclassified subsequently to profit or loss: Exchange differences on translation of foreign operations Total other comprehensive income that may be reclassified subsequently to profit or loss Items that will not be reclassified subsequently to profit or loss: Net gain/(loss) on equity instruments designated at fair value through other comprehensive income Total other comprehensive income that will not be reclassified subsequently to profit or loss Total comprehensive income for the period Basic and diluted earnings/(loss) per share	76,478 68,840 (61,123) (57,736)
	15,355 11,104 1,265 274 (845) (749) (6,746) (6,404) (70) 44
	8,959 4,269 (2,813) (1,694)
	6,146 2,575
	(3,346) 787
	(3,346) 787
	1,991 539
	1,991 539
	4,791 3,901
	Cents 5.31 Cents 2.23

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

6

Half-Year Report – 31 December 2020

CI RESOURCES LIMITED

Consolidated Statement of Financial Position

As at 31 December 2020

Notes	Consolidated 31 December 2020 $’000s 30 June 2020 $’000s	Consolidated 31 December 2020 $’000s 30 June 2020 $’000s
Current assets Cash and cash equivalents Other financial assets Trade and other receivables Inventories Biological assets Forward exchange contract receivable 7 Income tax receivable Total current assets Non-current assets Other financial assets Right of use assets Property, plant & equipment Goodwill Biological assets Investment in joint ventures Deferred tax assets Total non-current assets Total assets Current liabilities Trade and other payables Interest bearing loans and borrowings Provisions Total current liabilities Non-current liabilities Interest bearing loans and borrowings Deferred tax liabilities Provisions Total non-current liabilities Total liabilities Net assets Equity Contributed equity Reserves Accumulated profits Total equity	40,797 6,808 37,453 28,677 200 5,622 535	44,149 6,877 29,253 32,490 231 1,363 546
	**120,092 **	114,909
	29,096 799 83,382 4,057 4,797 1,245 8,960	28,410 916 85,843 4,057 5,391 1,315 9,161
	132,336	135,093
	252,428	250,002
	9,349 8,051 4,844	11,101 8,885 3,802
	22,244	23,788
	9,498 5,386 20,299	10,795 5,465 19,744
	35,183	36,004
	57,427	59,792
	195,001	190,210
	72,160 4,254 118,587	72,160 5,609 112,441
	195,001	190,210

The above Statement of Financial Position should be read in conjunction with the accompanying notes.

7

Half-Year Report – 31 December 2020

CI RESOURCES LIMITED

Consolidated Statements of Changes in Equity For the half-year ended 31 December 2020

2020 Consolidated	Contributed Equity $’000s Foreign Currency Translation Reserve $’000s Fair Value Reserve $’000s Discount on Acquisition of Non- controlling interest Reserve $’000s Retained Earnings $’000s	Total $’000s 190,210
1 July 2020 Profit for the period Other comprehensive income Total comprehensive income for the period Transactions with owners in their capacity as owners Dividends paid 31 December 2020	72,160 3,321 (6,211) 8,499 112,441
	- - - - 6,146 - (3,346) 1,991 - -	6,146 (1,355)
	- (3,346) 1,991 - 6,146	**4,791 **
	- - - - -	-
	72,160 (25) (4,220) 8,499 118,587	195,001

8

Half-Year Report – 31 December 2020

CI RESOURCES LIMITED

Consolidated Statements of Changes in Equity For the half-year ended 31 December 2020

2019 Consolidated	Contributed Equity $’000s Foreign Currency Translation Reserve $’000s Fair Value Reserve $’000s Discount on Acquisition of Non- controlling interest Reserve $’000s Retained Earnings $’000s	Total $’000s 195,306
1 July 2019 Profit for the period Other comprehensive income Total comprehensive income for the period Transactions with owners in their capacity as owners Dividends paid 31 December 2019	72,160 4,455 (3,951) 8,499 114,143
	- - - - 2,575 - 787 539 - -	2,575 1,326
	- 787 539 - 2,575	**3,901 **
	- - - - (1,734)	(1,734)
	72,160 5,242 (3,412) 8,499 114,984	197,473

9

Half-Year Report – 31 December 2020

CI RESOURCES LIMITED

Consolidated Statement of Cash Flows For the half-year ended 31 December 2020

Notes	Consolidated 31 December 2020 $’000s 31 December 2019 $’000s
Cash flows from operating activities Receipts from customers Payments to suppliers and employees Interest received Borrowing costs Interest paid on lease liability Income taxes paid Net cash (outflow)/inflow from operating activities Cash flows from investing activities Decrease/(increase) in financial assets Proceeds from sale of property, plant and equipment Purchase of property and equipment Net cash (outflow)/ inflow from investing activities Cash flows from financing activities Repayment of lease liabilities Repayments of borrowings Proceeds of borrowings Dividends paid Net cash (outflow)/inflow from financing activities Net (decrease)/increase in cash and cash equivalents Cash and cash equivalents at the beginning of the financial year Impact of foreign exchange Cash and cash equivalents at the end of the period	69,443 63,492 (69,794) (64,902) 215 381 (300) (376) (6) - (2,606) (1,294)
	(3,048) (2,699)
	54 1,462 75 - (1,515) (7,162)
	(1,386) (5,700)
	(157) (118) (11,230) (3,284) 10,135 6,668 - (1,734)
	(1,252) 1,532
	(5,686) (6,867) 44,149 39,726 2,334 101
	40,797 32,960

The above Statement of Cash Flows should be read in conjunction with the accompanying notes.

10

Half-Year Report – 31 December 2020

CI RESOURCES LIMITED

Notes to the financial statements For the half-year ended 31 December 2020

1 Corporate Information

The half-year financial statements of CI Resources Limited (referred to as ‘CI Resources or ‘the Company’) and its subsidiaries (referred to as ‘the Group’) for the six months ended 31 December 2020 were authorised for issue in accordance with a resolution of the directors on 26 February 2021.

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 Basis of Preparation and Accounting Policies

Basis of preparation

This half-year financial statements for the half-year ended 31 December 2020 are general purpose financial statements prepared in accordance with AASB 134 Interim Financial Reporting and the Corporations Act 2001 .

The half-year financial statements does not include all notes of the type normally included within the Annual Financial Report and therefore cannot be expected to provide as full an understanding of the financial performance, financial position and financing and investing activities of the consolidated entity as the full financial report.

The half-year financial statements should be read in conjunction with the Annual Financial Report of CI Resources Limited as at 30 June 2020 and considered with any public announcements made by the Company during the half-year ended 31 December 2020 in accordance with the continuous disclosure obligations of the ASX Listing Rules.

The half-year financial statements are presented in Australian dollars and all values are rounded to the nearest thousand dollars unless otherwise stated, in accordance with ASIC Corporations (Rounding in Financial/Directors' Reports) Instrument 2016/191. The Company is an entity to which the class order applies.

Apart from the adoption of new or revised standards noted below, the accounting policies and methods of computation are the same as those adopted in the most recent annual financial report.

Changes in accounting policy

All new and amended Australian Accounting Standards and Interpretations mandatory as at 1 July 2020 to the Group have been adopted and include:

• Conceptual Framework for Financial Reporting ;

• AASB 2019-1 Amendments to Australian Accounting Standards – References to the Conceptual Framework ;

• AASB 2018-6 Amendments to Australian Accounting Standards – Definition of a Business ;

• AASB 2019-3 Amendments to Australian Accounting Standards – Interest Rate Benchmark Reform ;

• AASB 2018-7 Amendments to Australian Accounting Standards – Definition of Material ; and

• AASB 2019-5 Amendments to Australian Accounting Standards – Disclosures of the Effect of New IFRS Standards Not Yet Issued in Australia .

The Group has adopted all of the new, revised or amending Accounting Standards and Interpretations issued by the Australian Accounting Standards Board that are mandatory for the current reporting period and were relevant to the Group. The adoption of the new and amended accounting standards and interpretations had no material impact on the Group. Any new, revised or amending Accounting Standards of Interpretations that are not yet mandatory have not been adopted early.

11

Half-Year Report – 31 December 2020

CI RESOURCES LIMITED

Notes to the financial statements For the half-year ended 31 December 2020

3 Revenue and Expenses (a) Revenue Revenue from contracts with customers Phosphate sales Palm oil sales Rendering of services Fuel sales Other sales Total revenue from contracts with customers Other revenue Interest on cash and term deposits Total other revenue (b) Cost of sales Cost of production: Production and purchase costs Royalties Environment levy Insurance Shipping costs: Shipping charges Port charges Handling and warehousing costs Depreciation: Plant and equipment Total cost of sales (c) Other income Dividend income from equity instruments at fair value through OCI Government grants Unrealised gain on capital notes (d) Finance costs Accretion in provisions Interest expense	Consolidated 31 December 2020 $’000s 31 December 2019 $’000s 41,302 37,571 16,655 15,490 8,289 5,448 6,963 6,967 3,054 2,983
	76,263 68,459
	215 381
	215 381
	76,478 68,840
	46,114 43,943 614 544 624 543 970 974
	48,322 46,004
	6,569 6,022 973 741
	7,542 6,763
	1,138 1,025 4,121 3,944
	61,123 57,736
	260 274 992 - 13 -
	1,265 274
	514 367 331 382 845 749

12

Half-Year Report – 31 December 2020

CI RESOURCES LIMITED

Notes to the financial statements For the half-year ended 31 December 2020

3 Revenue and Expenses (continued) (e) Other expenses Redundancy expense Change in fair value of biological asset Loss on disposal of asset Foreign exchange loss Depreciation Administration and other	Consolidated 31 December 2020 $’000s 31 December 2019 $’000s 273 126 20 - 45 6 527 159 234 175 5,647 5,938
	6,746 6,404

4 Dividends Paid and Proposed

Franked dividends declared and paid during the half-year on ordinary shares to the owners of the parent:$Nil(December 2019:$0.15) Dividends proposed and not yet recognised as a liability:$0.02	- (1,734) (2,311) -
	(2,311) (1,734)

5 Commitments and Contingencies

As at the reporting date, the consolidated entity had no expenditure commitments.

Since the last annual reporting date, there has been no material change to any contingent liabilities or contingent assets.

6 Events after the Balance Sheet Date

No matter or circumstance has arisen since 31 December 2020 that has significantly affected, or may significantly affect, the operations of CI Resources Limited and its controlled entities, or the state of affairs of CI Resources Limited and its controlled entities in subsequent periods.

13

Half-Year Report – 31 December 2020

CI RESOURCES LIMITED

Notes to the financial statements For the half-year ended 31 December 2020

7 Financial Instruments

The Directors have concluded that the fair value of financial assets and financial liabilities are not materially different to book 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.

• Finance lease liability - The fair value is the present value of minimum lease payments.

• 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.

(a) Forward currency contracts – Financial asset 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	Notional amounts	Average exchange rate	Average exchange rate
	$AUD
	31 Dec 2020	30 June 2020	31 Dec 2020	30 June 2020
	$’000s	$’000s
Sell US$/buy Australian $
Consolidated
Sell US$ maturity 0 to 12 months	36,998	27,138	0.6730	0.6817
Sell US$ maturity 12 to 24 months	4,925	17,264	0.6092	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 gains on foreign currency derivatives during the half-year were $4.403 million (2019: loss $0.355 million) for the Group.

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

The Group has invested in capital notes with various institutions which are designated as available-for-sale financial assets.

	Fair Value	Fair Value
	$AUD
	31 Dec 2020	30	June 2020
	$’000s		$’000s
Capital notes $
Australian capital notes	969		956

Initial measurement of these financial assets comprise fair value plus transaction costs and subsequent measurement at fair value. The movement in fair value in each period is recognised in other comprehensive income. The net fair value gain on capital notes during the half-year were $13,000 (2019: loss $3,000) for the Group.

The group uses various methods in estimating the fair value of a financial instrument. The methods comprise: Level 1: the fair value is calculated using quoted price in active markets;

Level 2: the fair value is estimated using inputs other than quoted prices included in Level 1 that are observable for the assets or liability, either directly (as price) or indirectly (derived from prices); and

Level 3 : the fair value is estimated using inputs for the assets or liability that are not based on observable market data.

Forward currency contract - classified as financial asset at fair value through profit or loss Capital notes - classified as financial asset at fair value through profit or loss	Level 1 Level 2 Level 3 Total $’000s $’000s $’000s $’000s - 5,622 - 5,622 969 - - 969
	969 5,622 - **6,591 **

14

Half-Year Report – 31 December 2020

CI RESOURCES LIMITED

Notes to the financial statements For the half-year ended 31 December 2020

Transfer between categories:

There were no transfers between levels during the half-year.

8 Segment Reporting

Segment Reporting for the half-year ended 31 December 2020

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 resources.

The Group has identified its operating segments to be Fertiliser (formerly 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 segment has been renamed Fertiliser. The Fertiliser operating segment primarily involves mining, processing and sale of phosphate rock, phosphate dust and other fertiliser products.

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

Accounting policies and inter-segment transactions

The accounting policy used by the Group in reporting segments internally are the same as those contained in Note 2 to the 30 June 2020 accounts.

Revenue Revenue from external customers Interest income Rendering of services Fuel sales Total segment revenue Result Segment net operating profit/(loss) after tax (attributable to parent) Depreciation and amortisation Income tax expense Assets and Liabilities Segment assets Segment liabilities	Half-Year ended 31 December 2020
	Fertiliser Farming Unallocated/ Elimination Total $’000s $’000s $’000s $’000s
	44,559 16,655 - 61,214 88 81 46 215 - - 8,086 8,086 - - 6,963 6,963
	44,647 16,736 15,095 76,478 3,914 (13) 2,245 6,146
	2,639 1,060 656 4,355 1,635 216 962 2,813 As at 31 December 2020 163,920 57,459 31,049 252,428
	40,223 14,652 2,552 57,427

15

Half-Year Report – 31 December 2020

CI RESOURCES LIMITED

Notes to the financial statements For the half-year ended 31 December 2020

8 Segment reporting (continued)

Revenue Revenue from external customers Interest income Rendering of services Fuel sales Total segment revenue Result Segment net operating profit after tax (attributable to parent) Depreciation and amortisation Income tax expense Assets and Liabilities Segment assets Segment liabilities	Half-Year ended 31 December 2019
	Fertiliser Farming Unallocated/ Elimination Total $’000s $’000s $’000s $’000s
	40,554 15,490 - 56,044 162 149 70 381 - - 5,448 5,448 - - 6,967 6,967
	40,716 15,639 12,485 68,840 2,329 84 162 2,575
	2,348 1,082 689 4,119 1,611 27 56 1,694 As at 30 June 2020 155,206 61,212 33,584 250,002
	39,535 17,595 2,662 59,792

Revenue from external customers by geographical locations is detailed below. Revenue is attributed to geographic location based on the location of the customers. The Company does not have external revenues from external customers that are attributable to any foreign country other than as shown:

Australasia Indonesia Malaysia Singapore	1 July 2020 to 31 December 2020 July 2019 to 31 December 2019 $’000s $’000s 18,344 16,311 18,968 18,958 38,287 32,390 664 800
	76,263 68,459

Major customers

The Group has a number of customers to which it provides the products. There are 3 (2019: 3) customers of the Group who each account for more than 10% of total external revenue for the half years ended.

16

Half-Year Report – 31 December 2020

CI RESOURCES LIMITED

Notes to the financial statements For the half-year ended 31 December 2020

8 Segment reporting (continued)

Non-Current Assets by geographical regions:

Ct At b hil i
on-urren sses y geograpca regons: Australia Malaysia Singapore	Consolidated 31 December 2020 $’000s 30 June 2020 $’000s 56,055 58,189 69,218 69,322 7,063 7,582
	132,336 135,093

9 Related parties

The Group has a policy that all transactions with related parties are conducted on commercial terms and conditions.

No material related party transactions occurred other than the remuneration of Directors and Key Management Personnel.

10 Changes in composition of the entity

There has been no material change in the composition and nature of the Group during the interim period, including business combinations, obtaining or losing control of subsidiaries and long-term investments, restructurings and discontinued operations.

17

Half-Year Report – 31 December 2020

Directors’ Declaration

In the directors’ opinion:

• (a) The financial statements comprising the Statement of Comprehensive Income, Statement of Financial Position, Statement of Cash Flows, Statement of Changes in Equity and accompanying notes are in accordance with the Corporations Act 2001, including:

• (i) complying with Accounting Standard AASB 134: Interim Financial Reporting, the Corporations Regulations 2001 and other mandatory professional reporting requirements; and

• (ii) giving a true and fair view of the company and the consolidated entity’s financial position as at 31 December 2020 and of their performance, for the half-year ended on that date; and

• (b) there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable.

This declaration is made in accordance with a resolution of the directors.

D Somerville Chairman

Perth 26 February 2021

Half-year Report – 31 December 2020 18

CI RESOURCES LIMITED

INDEPENDENT RE�IEW REPORT TO T�E �E��ERS

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

Independent auditor's review report to the members of CI Resources Limited

Report on the half-year financial report

Conclusion

We have reviewed the accompanying half-year financial report of CI Resources Limited (the Company) and its subsidiaries (collectively the Group), which comprises the consolidated statement of financial position as at 31 December 2020, the consolidated statement of comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the half-year ended on that date, notes comprising a summary of significant accounting policies and other explanatory information, and the directors’ declaration.

Based on our review, which is not an audit, nothing has come to our attention that causes us to believe that the half-year financial report of the Group is not 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 31 December 2020 and of its consolidated financial performance for the half-year ended on that date; and

• b. Complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001 .

Directors’ responsibility for the half-year financial report

The directors of the Company are responsible for the preparation of the half-year 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 half-year financial report that is free from material misstatement, whether due to fraud or error.

Auditor’s responsibility

Our responsibility is to express a conclusion on the half-year financial report based on our review. We conducted our review in accordance with Auditing Standard on Review Engagements ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity , in order to state whether, on the basis of the procedures described, anything has come to our attention that causes us to believe that the half-year financial report is not in accordance with the Corporations Act 2001 including: giving a true and fair view of the Group’s consolidated financial position as at 31 December 2020 and its consolidated financial performance for the half-year ended on that date; and complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001 . As the auditor of the Group, ASRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual financial report.

Half-year Report – 31 December 2020 19

CI RESOURCES LIMITED

INDEPENDENT RE�IEW REPORT TO T�E �E��ERS

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A review of a half-year financial report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Independence

In conducting our review, we have complied with the independence requirements of the Corporations Act 2001 .

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Ernst & Young

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R J Curtin Partner 26 February 2021

A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation

Half-year Report – 31 December 2020 20