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PROSPECT RESOURCES LIMITED Interim / Quarterly Report 2017

Oct 27, 2016

65617_rns_2016-10-27_5b19fb2d-a74c-4381-a6d3-84ce7be0093b.pdf

Interim / Quarterly Report

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Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

+Rule 5.5

Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

Introduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10, 01/05/13, 01/09/16

Name of entity

PROSPECT RESOURCES LIMITED

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ABN Quarter ended (“current quarter”)

30 124 354 329 30 SEPTEMBER 2016

Consolidated statement of cash flows Consolidated statement of cash flows Current quarter Year to date
$A’000 (3 months)
$A’000
1. Cash flows from operating activities
1.1 Receipts from customers 20 20
1.2 Payments for
(a) exploration & evaluation (71) (71)
(b) development
(c) production
(d) staff costs (82) (82)
(e) administration and corporate costs (526) (526)
(f)
project generation
(182) (182)
1.3 Dividends received (see note 3)
1.4 Interest received
1.5 Interest and other costs of finance paid
1.6 Income taxes paid
1.7 Research and development refunds
1.8 Other (provide details if material)
1.9 Net cash from / (used in) operating (841) (841)
activities
2. Cash flows from investing activities
2.1 Payments to acquire:
(a) property, plant and equipment (86) (86)
(b) tenements (see item 10)
(c) investments
  • See chapter 19 for defined terms 1 September 2016

Page 1

Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

Consolidated statement of cash flows
Current quarter
$A’000
Year to date
(3 months)
$A’000
(d) other non-current assets
2.2
Proceeds from the disposal of:
(a) property, plant and equipment
(b) tenements (see item 10)
(c) investments
(d) other non-current assets
2.3
Cash flows from loans to other entities
2.4
Dividends received (see note 3)
2.5
Other (provide details if material)
(a) Exploration and evaluation
(b) Development
(c) Interest received
(732)
(487)
3
(732)
(487)
3
2.6
Net cash from / (used in) investing
activities
(1,302)
(1,302)
3.
Cash flows from financing activities
17,105
17,105
3.1
Proceeds from issues of shares
3.2
Proceeds from issue of convertible notes
3.3
Proceeds from exercise of share options
3.4
Transaction costs related to issues of
shares, convertible notes or options
3.5
Proceeds from borrowings
3.6
Repayment of borrowings (related party)
(102)
(102)
3.7
Transaction costs related to loans and
borrowings
3.8
Dividends paid
3.9
Other (provide details if material)
(a) Cost of issue of shares, options
(898)
(898)
3.10
Net cash from / (used in) financing
activities
16,105
16,105
4.
Net increase / (decrease) in cash and
cash equivalents for the period
2,417
2,417
4.1
Cash and cash equivalents at beginning of
period
4.2
Net cash from / (used in) operating
activities (item 1.9 above)
(841)
(841)
4.3
Net cash from / (used in) investing activities
(item 2.6 above)
(1,302)
(1,302)
4.4
Net cash from / (used in) financing activities
(item 3.10 above)
16,105
16,105
  • See chapter 19 for defined terms

1 September 2016

Page 2

Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

Consolidated statement of cash flows Consolidated statement of cash flows Current quarter Year to date
$A’000 (3 months)
$A’000
4.5 Effect of movement in exchange rates on (278) (278)
cash held
4.6 Cash and cash equivalents at end of 16,101 16,101
period
5. Reconciliation of cash and cash Current quarter Previous quarter
equivalents $A’000 $A’000
at the end of the quarter (as shown in the
consolidated statement of cash flows) to the
related items in the accounts
5.1 Bank balances 13 16
5.2 Call deposits 4,054 455
5.3 Bank overdrafts - -
5.4 Other (provide details)
US$ at bank 11,994 1,899
Petty cash 40 47
5.5 Cash and cash equivalents at end of 16,101 2,417
quarter (should equal item 4.6 above)
6. Payments to directors of the entity and their associates Current quarter
$A'000
6.1 Aggregate amount of payments to these parties included in item 1.2 64
6.2 Aggregate amount of cash flow from loans to these parties included -
in item 2.3
6.3 Include below any explanation necessary to understand the transactions included in
items 6.1 and 6.2

Payments include director fees & superannuation. The Company has accrued fees owing to Directors of $123k which will be paid in subsequent quarter.

7. Payments to related entities of the entity and their Current quarter associates $A'000

7.1 Aggregate amount of payments to these parties included in item 1.2 27 -

  • 7.2 Aggregate amount of cash flow from loans to these parties included in item 2.3

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  • 7.3 Include below any explanation necessary to understand the transactions included in items 7.1 and 7.2

Payments include rent and geological services

  • See chapter 19 for defined terms 1 September 2016

Page 3

Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

Mining exploration entity and oil andgas exploration Appendix 5B
entity quarterly repor
8. Financing facilities available Total facility amount Amount drawn at
Add notes as necessary for an at quarter end quarter end
understanding of the position $A’000 $A’000
8.1 Loan facilities
8.2 Credit standby arrangements
8.3 Other (please specify)
8.4 Include below a description of each facility above, including the lender, interest rate and
whether it is secured or unsecured. If any additional facilities have been entered into or are
proposed to be entered into after quarter end, include details of those facilities as well.

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9. Estimated cash outflows for next quarter $A’000
9.1 Exploration and evaluation 520
9.2 Development 210
9.3 Production -
9.4 Staff costs 310
9.5 Administration and corporate costs 125
9.6 Other (provide details if material) -
9.7 Total estimated cash outflows 1,165
10. Changes in Tenement Nature of interest Interest at Interest
tenements reference beginning at end of
(items 2.1(b) and and of quarter quarter
2.2(b) above) location
10.1 Interests in mining Refer Appendix A
tenements and
petroleum tenements
lapsed, relinquished
or reduced
10.2 Interests in mining Refer Appendix A
tenements and
petroleum tenements
acquired or increased
  • See chapter 19 for defined terms 1 September 2016

Page 4

Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

Compliance statement

  • 1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.

  • 2 This statement gives a true and fair view of the matters disclosed.

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Sign here: ............................................................ Date: 28 October 2016 .................... (Director/Company secretary)

Print name: Hugh Warner................................................

Notes

  1. The quarterly report provides a basis for informing the market how the entity’s activities have been financed for the past quarter and the effect on its cash position. An entity that wishes to disclose additional information is encouraged to do so, in a note or notes included in or attached to this report.

  2. If this quarterly report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report. If this quarterly report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standards apply to this report.

  3. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.

  4. See chapter 19 for defined terms 1 September 2016

Page 5

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APPENDIX A – PROSPECT RESOURCES LIMITED TENEMENT SCHEDULE

Prospect Resources Limited has interests in tenements via the following companies:

  • 1) Coldawn Investment (Private) Limited (“Coldawn”)

  • 2) Hawkmoth Mining and Exploration (Private) Limited (“Hawkmoth”)

  • 3) Examix Investments (Pvt) Limited (“Examix”)

  • 4) Farvic Consolidated Mines (Pvt) Limited (“Farvic”)

  • 5) Tannahill Mine (Pvt) Limited (“Tannahill”)

  • 6) Mixnote Investments (Pvt) Limited (“Mixnote”)

Tenement Type &
Number
Country Project Registered
Company
Name
% Held at End
of Quarter
% Acquired
During Quarter
% Disposed
During Quarter
12227 Zimbabwe Penhalonga Coldawn 70%
20560 BM Zimbabwe Penhalonga Coldawn 70%
10675 Zimbabwe Penhalonga Coldawn 70%
21795 BM Zimbabwe Penhalonga Coldawn 70%
13166 BM Zimbabwe Penhalonga Coldawn 70%
18879 Zimbabwe Penhalonga Coldawn 70%
18880 Zimbabwe Penhalonga Coldawn 70%
18881 Zimbabwe Penhalonga Coldawn 70%
21748 BM Zimbabwe Penhalonga Coldawn 70%
18666 BM Zimbabwe Penhalonga Coldawn 70%
12212 Zimbabwe Penhalonga Coldawn 70%
12213 Zimbabwe Penhalonga Coldawn 70%
19474 BM Zimbabwe Penhalonga Coldawn 70%
14135 BM Zimbabwe Penhalonga Coldawn 70%
10338 Zimbabwe Penhalonga Coldawn 70%
G3425 Zimbabwe Penhalonga Coldawn 70%
18582 BM Zimbabwe Penhalonga Coldawn 70%
G2335 Zimbabwe Penhalonga Coldawn 70%
M2873 BM Zimbabwe Chisanya Hawkmoth 70%
M2874 BM Zimbabwe Chisanya Hawkmoth 70%
M2875 BM Zimbabwe Chisanya Hawkmoth 70%
M2876 BM Zimbabwe Chisanya Hawkmoth 70%
33154 Zimbabwe Starling Hawkmoth 70%
32570 Zimbabwe Starling Hawkmoth 70%
36975 Zimbabwe Starling Hawkmoth 70%
36976 Zimbabwe Starling Hawkmoth 70%
36974 Zimbabwe Starling Hawkmoth 70%
36973 Zimbabwe Starling Hawkmoth 70%
36972 Zimbabwe Starling Hawkmoth 70%
32716 Zimbabwe Starling Hawkmoth 70%
33280 Zimbabwe Starling Hawkmoth 70%
36983 Zimbabwe Starling Hawkmoth 70%
33181 Zimbabwe Starling Hawkmoth 70%
36978 Zimbabwe Starling Hawkmoth 70%

Prospect Resources Limited | ACN 124 354 329

Suite 6, 245 Churchill Ave. Subiaco WA 6008 | Phone: +61 8 9217 3300 | Fax: +61 8 9388 3006

Website: prospectresources.com.au | Email: [email protected]

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Tenement Type &
Number
Country Project Registered
Company
Name
% Held at End
of Quarter
% Acquired
During Quarter
% Disposed
During Quarter
36979 Zimbabwe Starling Hawkmoth 70%
36982 Zimbabwe Starling Hawkmoth 70%
36980 Zimbabwe Starling Hawkmoth 70%
36981 Zimbabwe Starling Hawkmoth 70%
GA1190 Zimbabwe Starling Hawkmoth 70%
32936 Zimbabwe Starling Hawkmoth 70%
32935 Zimbabwe Starling Hawkmoth 70%
31007 Zimbabwe Arcadia Examix 63%
23178 Zimbabwe Arcadia Examix 63%
35802 Zimbabwe Arcadia Examix 63%
23191 Zimbabwe Arcadia Examix 63%
23210 Zimbabwe Arcadia Examix 63%
23192 Zimbabwe Arcadia Examix 63%
23207 Zimbabwe Arcadia Examix 63%
31033 Zimbabwe Arcadia Examix 63%
23208 Zimbabwe Arcadia Examix 63%
23263 Zimbabwe Arcadia Examix 63% 63%
23264 Zimbabwe Arcadia Examix 63% 63%
23248 Zimbabwe Arcadia Examix 63% 63%
23249 Zimbabwe Arcadia Examix 63% 63%
23244 Zimbabwe Arcadia Examix 63% 63%
23247 Zimbabwe Arcadia Examix 63% 63%
23245 Zimbabwe Arcadia Examix 63% 63%
23246 Zimbabwe Arcadia Examix 63% 63%
23189 Zimbabwe Arcadia Examix 63% 63%
23190 Zimbabwe Arcadia Examix 63% 63%
23271 Zimbabwe Arcadia Examix 63% 63%
23233 Zimbabwe Arcadia Examix 63% 63%
23269 Zimbabwe Arcadia Examix 63% 63%
34748 Zimbabwe Greater Farvic Farvic ‐(i)
34750 Zimbabwe Greater Farvic Farvic ‐(i)
140300 J Zimbabwe Greater Farvic Farvic ‐(i)
140297 J Zimbabwe Greater Farvic Farvic ‐(i)
140295 J Zimbabwe Greater Farvic Farvic ‐(i)
140296 J Zimbabwe Greater Farvic Farvic ‐(i)
140299 J Zimbabwe Greater Farvic Farvic ‐(i)
140298 J Zimbabwe Greater Farvic Farvic ‐(i)
179175 J Zimbabwe Greater Farvic Farvic ‐(i)
179176 J Zimbabwe Greater Farvic Farvic ‐(i)
179177 J Zimbabwe Greater Farvic Farvic ‐(i)
179179 J Zimbabwe Greater Farvic Farvic ‐(i)
174178 J Zimbabwe Greater Farvic Farvic ‐(i)
435131 J Zimbabwe Greater Farvic Tannahill ‐(i)

Prospect Resources Limited | ACN 124 354 329

Suite 6, 245 Churchill Ave. Subiaco WA 6008 | Phone: +61 8 9217 3300 | Fax: +61 8 9388 3006

Website: prospectresources.com.au | Email: [email protected]

==> picture [244 x 36] intentionally omitted <==

Tenement Type &
Number
Country Project Registered
Company
Name
% Held at End
of Quarter
% Acquired
During Quarter
% Disposed
During Quarter
435129 J Zimbabwe Greater Farvic Tannahill ‐(i)
435130 J Zimbabwe Greater Farvic Tannahill ‐(i)
435132 J Zimbabwe Greater Farvic Tannahill ‐(i)
435125 J Zimbabwe Greater Farvic Tannahill ‐(i)
435124 J Zimbabwe Greater Farvic Tannahill ‐(i)
435123 J Zimbabwe Greater Farvic Tannahill ‐(i)
435126 J Zimbabwe Greater Farvic Tannahill ‐(i)
435128 J Zimbabwe Greater Farvic Tannahill ‐(i)
435127 J Zimbabwe Greater Farvic Tannahill ‐(i)
448985 J Zimbabwe Greater Farvic Tannahill ‐(i)
482952 J Zimbabwe Greater Farvic Tannahill ‐(i)
482953 J Zimbabwe Greater Farvic Tannahill ‐(i)
483048 J Zimbabwe Greater Farvic Tannahill ‐(i)
483005 J Zimbabwe Greater Farvic Tannahill ‐(i)
483006 J Zimbabwe Greater Farvic Tannahill ‐(i)
483007 J Zimbabwe Greater Farvic Tannahill ‐(i)
483062 J Zimbabwe Greater Farvic Tannahill ‐(i)
483061 J Zimbabwe Greater Farvic Tannahill ‐(i)
483004 J Zimbabwe Greater Farvic Tannahill ‐(i)
483003 J Zimbabwe Greater Farvic Tannahill ‐(i)
435227 J Zimbabwe Greater Farvic Tannahill ‐(i)
483000 J Zimbabwe Greater Farvic Tannahill ‐(i)
483009 J Zimbabwe Greater Farvic Tannahill ‐(i)
483010 J Zimbabwe Greater Farvic Tannahill ‐(i)
483012 J Zimbabwe Greater Farvic Tannahill ‐(i)
483011 J Zimbabwe Greater Farvic Tannahill ‐(i)
483014 J Zimbabwe Greater Farvic Tannahill ‐(i)
483018 J Zimbabwe Greater Farvic Tannahill ‐(i)
483017 J Zimbabwe Greater Farvic Tannahill ‐(i)
483015 J Zimbabwe Greater Farvic Tannahill ‐(i)
483013 J Zimbabwe Greater Farvic Tannahill ‐(i)
482999 J Zimbabwe Greater Farvic Tannahill ‐(i)
482997 J Zimbabwe Greater Farvic Tannahill ‐(i)
482996 J Zimbabwe Greater Farvic Tannahill ‐(i)
482995 J Zimbabwe Greater Farvic Tannahill ‐(i)
435211 J Zimbabwe Greater Farvic Tannahill ‐(i)
435209 J Zimbabwe Greater Farvic Tannahill ‐(i)
435210 J Zimbabwe Greater Farvic Tannahill ‐(i)
435196 J Zimbabwe Greater Farvic Tannahill ‐(i)
435197 J Zimbabwe Greater Farvic Tannahill ‐(i)
435199 J Zimbabwe Greater Farvic Tannahill ‐(i)
435198 J Zimbabwe Greater Farvic Tannahill ‐(i)
435200 J Zimbabwe Greater Farvic Tannahill ‐(i)
435201 J Zimbabwe Greater Farvic Tannahill ‐(i)
435214 J Zimbabwe Greater Farvic Tannahill ‐(i)

Prospect Resources Limited | ACN 124 354 329

Suite 6, 245 Churchill Ave. Subiaco WA 6008 | Phone: +61 8 9217 3300 | Fax: +61 8 9388 3006

Website: prospectresources.com.au | Email: [email protected]

==> picture [244 x 36] intentionally omitted <==

Tenement Type &
Number
Country Project Registered
Company
Name
% Held at End
of Quarter
% Acquired
During Quarter
% Disposed
During Quarter
435213 J Zimbabwe Greater Farvic Tannahill ‐(i)
435215 J Zimbabwe Greater Farvic Tannahill ‐(i)
435217 J Zimbabwe Greater Farvic Tannahill ‐(i)
435219 J Zimbabwe Greater Farvic Tannahill ‐(i)
435221 J Zimbabwe Greater Farvic Tannahill ‐(i)
435218 J Zimbabwe Greater Farvic Tannahill ‐(i)
483222 J Zimbabwe Greater Farvic Tannahill ‐(i)
435204 J Zimbabwe Greater Farvic Tannahill ‐(i)
482998 Zimbabwe Greater Farvic Tannahill ‐(i)
483037 J Zimbabwe Greater Farvic Tannahill ‐(i)
483024 J Zimbabwe Greater Farvic Tannahill ‐(i)
435225 J Zimbabwe Greater Farvic Tannahill ‐(i)
435226 J Zimbabwe Greater Farvic Tannahill ‐(i)
483063 J Zimbabwe Greater Farvic Tannahill ‐(i)
483064 J Zimbabwe Greater Farvic Tannahill ‐(i)
483065 J Zimbabwe Greater Farvic Tannahill ‐(i)
483066 J Zimbabwe Greater Farvic Tannahill ‐(i)
483067 J Zimbabwe Greater Farvic Tannahill ‐(i)
483068 J Zimbabwe Greater Farvic Tannahill ‐(i)
483069 J Zimbabwe Greater Farvic Tannahill ‐(i)
483464 J Zimbabwe Greater Farvic Tannahill ‐(i)
483465 J Zimbabwe Greater Farvic Tannahill ‐(i)
483466 J Zimbabwe Greater Farvic Tannahill ‐(i)
483469 J Zimbabwe Greater Farvic Tannahill ‐(i)
483467 J Zimbabwe Greater Farvic Tannahill ‐(i)
483468 J Zimbabwe Greater Farvic Tannahill ‐(i)
483471 J Zimbabwe Greater Farvic Tannahill ‐(i)
483470 J Zimbabwe Greater Farvic Tannahill ‐(i)
483508 J Zimbabwe Greater Farvic Tannahill ‐(i)
483507 J Zimbabwe Greater Farvic Tannahill ‐(i)
483518 J Zimbabwe Greater Farvic Tannahill ‐(i)
483517 J Zimbabwe Greater Farvic Tannahill ‐(i)
483516 J Zimbabwe Greater Farvic Tannahill ‐(i)
483515 J Zimbabwe Greater Farvic Tannahill ‐(i)
483514 J Zimbabwe Greater Farvic Tannahill ‐(i)
483511 J Zimbabwe Greater Farvic Tannahill ‐(i)
483513 J Zimbabwe Greater Farvic Tannahill ‐(i)
483512 J Zimbabwe Greater Farvic Tannahill ‐(i)
483510 J Zimbabwe Greater Farvic Tannahill ‐(i)
483509 J Zimbabwe Greater Farvic Tannahill ‐(i)
483506 J Zimbabwe Greater Farvic Tannahill ‐(i)
483505 J Zimbabwe Greater Farvic Tannahill ‐(i)
483504 J Zimbabwe Greater Farvic Tannahill ‐(i)
483503 J Zimbabwe Greater Farvic Tannahill ‐(i)
483502 J Zimbabwe Greater Farvic Tannahill ‐(i)

Prospect Resources Limited | ACN 124 354 329

Suite 6, 245 Churchill Ave. Subiaco WA 6008 | Phone: +61 8 9217 3300 | Fax: +61 8 9388 3006

Website: prospectresources.com.au | Email: [email protected]

==> picture [244 x 36] intentionally omitted <==

Tenement Type &
Number
Country Project Registered
Company
Name
% Held at End
of Quarter
% Acquired
During Quarter
% Disposed
During Quarter
483501 J Zimbabwe Greater Farvic Tannahill ‐(i)
483500 J Zimbabwe Greater Farvic Tannahill ‐(i)
063742 J Zimbabwe Greater Farvic Tannahill ‐(i)
H 046672 Zimbabwe Greater Farvic Mixnote ‐(i)
H 046681 Zimbabwe Greater Farvic Mixnote ‐(i)
H 046682 Zimbabwe Greater Farvic Mixnote ‐(i)
H 046676 Zimbabwe Greater Farvic Mixnote ‐(i)
H 046675 Zimbabwe Greater Farvic Mixnote ‐(i)
H 046674 Zimbabwe Greater Farvic Mixnote ‐(i)
H 046673 Zimbabwe Greater Farvic Mixnote ‐(i)
003515 M Zimbabwe Greater Farvic Mixnote ‐(i)
003583 M Zimbabwe Greater Farvic Farvic ‐(i)

(i) Hawkmoth can earn a 51% interest by spending USD$1.5m within 36 months. Hawkmoth can earn the remaining 49% interest by spending a further USD$1.5m within the next 12 months.

Prospect Resources Limited | ACN 124 354 329

Suite 6, 245 Churchill Ave. Subiaco WA 6008 | Phone: +61 8 9217 3300 | Fax: +61 8 9388 3006

Website: prospectresources.com.au | Email: [email protected]