SCIDEV LTD — Interim / Quarterly Report 2003

Mar 4, 2003

Intec Ltd

ABN 25 001 150 849

Gordon Chiu Building, J01 Department of Chemical Engineering Maze Crescent University of Sydney NSW 2006 Australia

Telephone: +612-9351-6741 Facsimile: +612-9351-7180 Email: mail@intec.com.au Website: www.intec.com.au

5 March 2003

Companies Announcements Office Australian Stock Exchange Limited PO Box H224 Australia Square SYDNEY NSW 2000

Attached is Intec Ltd's Half Yearly Report for the half-year ended 31 December 2002 (Appendix 4B).

Yours faithfully

Philip R. Wood

Philip R Wood Managing Director Chief Executive Officer

Appendix 4B Half-Yearly Report 31 December 2002

Rules 4.1, 4.3

Appendix 4B

Half-yearly /-Preliminary Final report

Introduced 30/6/2002.	.
Intec Ltd Name of entity
ABN or equivalent company 25 001 150 849 reference	Half year	ended ('current period')	31 December 2002
For announcement to the market Extracts from this report for announcement to the market (see note 1)				\$A'000
Revenues from ordinary activities (item 1.1)	up	162.2% to		194
Profit (loss) from ordinary activities after tax attributable to members (item 1.22)	down	39.8% to		(1, 219)
Profit (loss) from extraordinary items after tax attributable to members (item 2.5(d))	gain (loss) of
Net profit (loss) for the period attributable to members (item 1.11)	down	39.8% to		(1, 219)
Dividends (distributions)		Amount per security		Franked amount per security
Final dividend (Preliminary final report only - item 15.4) Interim dividend (Half yearly report only - item 15.6)		Nil $\phi$		Nil ¢
Previous corresponding period (Preliminary final report - item 15.5; half yearly report - item 15.7)		Nil ¢		Nil ¢
Record date for determining entitlements to the dividend, (in the case of a trust, distribution) (see item 15.2)		Not applicable
Brief explanation of any of the figures reported above (see Note 1) and short details of any bonus or cash issue or other item(s) of importance not previously released to the market:		Nil

If this is a half yearly report it is to be read in conjunction with the most
recent annual financial report.

Condensed consolidated statement of financial performance

	Current period \$A'000	Previous corresponding period \$A'000
1.1 Revenues from ordinary activities (see items 1.23 -1.25)	194	74
1.2 Expenses from ordinary activities (see items 1.26 & 1.27)	(1, 413)	(2,085)
1.3 Borrowing costs		(13)
1.4 Share of net profits (losses) of associates and joint venture entities (see item 16.7)
1.5 Profit (loss) from ordinary activities before tax	(1, 219)	(2,024)
1.6 Income tax on ordinary activities (see note 4)
1.7 Profit (loss) from ordinary activities after tax	(1, 219)	(2,024)
1.8 Profit (loss) from extraordinary items after tax (see item 2.5)
1.9 Net profit (loss)	(1, 219)	(2,024)
1.10 Net profit (loss) attributable to outside equity interests
1.11 Net profit (loss) for the period attributable to members	(1, 219)	(2,024)
Non-owner transaction changes in equity
1.12 Increase (decrease) in revaluation reserves 1.13 Net exchange differences recognised in equity 1.14 Other revenue, expense and initial adjustments
recognised directly in equity (attach details) 1.15 Initial adjustments from UIG transitional provisions
1.16 Total transactions and adjustments recognised directly in equity (items 1.12 to 1.15)
1.17 Total changes in equity not resulting from transactions with owners as owners	(1, 219)	(2,024)
Earnings per security (EPS)	Current period	Previous corresponding period
1.18 Basic EPS 1.19 Diluted EPS	$(0.9)$ cents $(0.9)$ cents	$(1.8)$ cents $(1.8)$ cents

Notes to the condensed consolidated statement of financial performance

Profit (loss) from ordinary activities attributable to members

		Previous
	Current	corresponding
	period	period
	\$A'000	\$A'000
1.20 Profit (loss) from ordinary activities
after tax (item 1.7)	(1, 219)	(2,024)
1.21 Less (plus) outside equity interests
1.22 Profit (loss) from ordinary activities after tax,
attributable to members	(1, 219)	(2,024)
Revenue and expenses from ordinary		Previous
activities	Current	corresponding
(see note 15)	period	period
	\$A'000	\$A'000
1.23 Revenue from sales or services	106	39
1.24 Interest revenue	85	35
1.25 Other relevant revenue	3
1.26 Details of relevant expenses
Employee benefits expense	(827)	(533)
Rental expense	(74)	(61)
Writeoff goodwill on consolidation		(1, 133)
Other expenses from ordinary activities	(485)	(336)
1.27 Depreciation and amortisation excluding
amortisation of intangibles (see item 2.3)	(27)	(22)
Capitalised outlays
1.28 Interest costs capitalised in asset values
1.29 Outlays capitalised in intangibles (unless
arising from an acquisition of a business)
Consolidated retained profits		Previous
	Current	corresponding
	period
	\$A'000	period \$A'000
1.30 Retained profits (accumulated losses) at
the beginning of the financial period	(26, 140)	(23, 043)
1.31 Net profit (loss) attributable to
members (item 1.11)	(1, 219)	(2,024)
1.32 Net transfers from (to) reserves
(details if material)
1.33 Net effect of changes in accounting policies
1.34 Dividends and other equity distributions paid
or payable
1.35 Retained profits (accumulated losses)
at end of financial period	(27, 359)	(25,067)

Intangible and extraordinary items

		Consolidated - current period
		Before tax	Related tax	Related outside equity interests	Amount (after tax) attributable to
		\$A'000 (a)	\$A'000 (b)	\$A'000 (c)	members \$A'000 (d)
2.1	Amortisation of goodwill
2.2	Amortisation of other intangibles
2.3	Total amortisation of intangibles
2.4	Extraordinary items (details)
2.5	Total extraordinary items

Current year - \$A'000	Comparison of half year profits (Preliminary final report only) Previous year - \$A'000	Current year \$A'000	Previous corresponding year \$A'000
3.1	Consolidated profit (loss) from ordinary activities after tax attributable to members reported for the 1st half year (item 1.22 in the half yearly report)	Not applicable	Not applicable
3.2	Consolidated profit (loss) from ordinary activities after tax attributable to members reported for the 2nd half year	Not applicable	Not applicable

Condensed consolidated statement of financial position

		At end of	As shown in	As in last
		current	last annual	half yearly
		period	report	report
		\$A'000	\$A'000	\$A'000
	Current assets
4.1	Cash	2,370	3,748	315
4.2	Receivables	114	32	28
4.3	Investments
4.4	Inventories
4.5	Tax assets
4.6	Other (provide details if material)			104
4.7	Total current assets	2,484	3,780	447
	Non-current assets
4.8	Receivables
4.9	Investments (equity accounted)
4.10	Other investments
4.11	Inventories
4.12	Exploration and evaluation expenditure
	capitalised (see para .71 of AASB 1022)
4.13	Development properties (mining entities)
4.14	Other property, plant and equipment (net)	241	87	58
4.15	Intangibles (net)
4.16	Tax assets
4.17	Other (provide details if material)
4.18	Total non-current assets	241	$\overline{87}$	58
4.19	Total assets	2,725	3,867	505
	Current liabilities
4.20	Payables	265	198	169
4.21	Interest bearing liabiliies			289
4.22	Tax liabilities
4.23	Provisions exc. tax liabilities	51	46	17
4.24	Other (provide details if material)
4.25	Total current liabilities	316	244	475
	Non-current liabilities
4.26	Payables
4.27	Interest bearing liabilities
4.28	Tax liabilities
4.29 4.30	Provisions exc. tax liabilities Other (provide details if material)	17	12	7
4.31	Total non-current liabilities	$\overline{17}$	$\overline{12}$	7
4.32	Total liabilities	333	256	482
4.33	Net assets	2,392	3,611	$23\,$
	Equity
4.34	Capital/contributed equity	29,751	29,751	25,090
4.35	Reserves
4.36	Retained profits (accumulated losses)	(27, 359)	(26, 140)	(25,067)
4.37	Equity attributable to members of the parent entity	2,392	3,611	23
4.38	Outside equity interests in controlled entities
4.39	Total equity	2,392	3,611	23 2
4.40	Preference capital included as part of 4.37

Notes to the condensed consolidated statement of financial position

Exploration and evaluation expenditure capitalised

(To be completed only by entities with mining interests if amounts are material. Include all expenditure incurred.)

			Previous
		Current	corresponding
		period	period
		\$A'000	\$A'000
5.1	Opening balance
5.2	Expenditure incurred during current period
5.3	Expenditure written off during current period
5.4	Acquisitions, disposals, revaluation increments, etc.
5.5	Expenditure transferred to Development Properties
5.6	Closing balance as shown in the consolidated balance sheet (item 4.12)

Development properties

(To be completed only by entities with mining interests if amounts are material. Include all expenditure incurred.)

			Previous
		Current	corresponding
		period	period
		\$A'000	\$A'000
6.1	Opening balance
6.2	Expenditure incurred during current period
6.3	Expenditure transferred from
	exploration and evaluatuin
6.4	Expenditure written off during current period
6.5	Acquisitions, disposals, revaluation
	increments, etc.
6.6	Expenditure transferred to
	Mine properties
6.7	Closing balance as shown in the
	consolidated balance sheet (item 4.13)

Condensed consolidated statement of cash flows

			Previous
		Current	corresponding
		period	period
		\$A'000	\$A'000
	Cash flows related to operating activities
7.1	Receipts from customers	10	39
7.2	Payments to suppliers and employees	(1, 291)	(1,014)
7.3	Dividends received from associates
7.4	Other dividends received
7.5	Interest and other items of similar nature received	85	35.
7.6	Interest and other costs of finance paid		(1)
7.7	Income taxes paid
7.8	Other (provide details if material)
7.9	Net operating cash flows	(1, 196)	(941)
	Cash flows related to investing activities
7.10	Payment for purchases of property,
	plant and equipment	(192)	(2)
7.11	Proceeds from sale of property,
	plant and equipment	13
7.12	Payment for purchases of equity investments
7.13	Proceeds from sale of equity investments
7.14	Loans to other entities
7.15 7.16	Loans repaid by other entities Other - cash acquired on purchase
	of controlled entity		31
7.17	Net investing cash flows	(179)	29
	Cash flows related to financing activities
7.18	Proceeds from issues of securities
	(shares, options, etc.)		177
7.19	Proceeds from borrowings
7.20	Repayment of borrowings		(71)
7.21	Dividends paid
7.22	Other - equity raising expenses	(3)	(28)
7.23	Net financing cash flows	$\overline{3}$	78
7.24	Net increase (decrease) in cash held	(1, 378)	(834)
7.25	Cash at beginning of period (see Reconciliation of cash)	3,748	1,149
7.26	Exchange rate adjustments to item 7.25.
7.27	Cash at end of period	2,370	315
	(see Reconciliation of cash)

Non-cash financing and investing activities

Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows are as follows. (If an amount is quantified, show comparative amount.)

Nil

Reconciliation of cash

	Reconciliation of cash at the end of the period (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows.	Current period \$A'000	Previous corresponding period \$A'000
8.1	Cash on hand and at bank	8	315
8.2	Deposits at call	159
8.3	Bank overdraft
8.4	Other - bank accepted bills of exchange	2,203
8.5	Total cash at end of period (item 7.27)	2.370	315

Other notes to the condensed financial statements

Ratios		Current	Previous corresponding
	Profit before tax / revenue	period	period
9.1	Consolidated profit (loss) from ordinary activities before tax (item 1.5) as a percentage of revenue (item 1.1)	$(628.4)\%$	$(2,735.1)\%$
9.2	Profit after tax / equity interests Consolidated net profit (loss) from ordinary activities after tax attributable to members (item 1.11) as a percentage of equity (similarly attributable) at the end of
	the period (item 4.37)	$(51.0)\%$	$(8,800.0)\%$

Earnings per security (EPS)

$10¹⁰$ Details of basic and diluted EPS reported separately in accordance with paragraph 9 and 18 of AASB 1027: Earnings Per Share are as follows.

	Current period	Previous corresponding period
Basic earnings per share (cents)	(0.9)	(1.8)
Diluted earnings per share (cents)	(0.9)	(1.8)
Weighted average number of ordinary shares outstanding during the period
used in calculating the basic EPS.	146,039,142	111,658,278

NTA backing

(see note 7)

$11.1$ Net tangible asset backing per ordinary security

Current period	Previous corresponding period
Nil	Νil

Discontinuing Operations

(Entities must report adescription of any significant activities or events relating to discontinuing operations in accordance with paragraph 7.5 (g) of AASB 1029: Interim Financial Reporting, or, the details of discontinuing operations they have disclosed in their accounts in accordance with AASB 1042: Discontinuing Operations (see note 17).)

12.1 Discontinuing Operations

Not applicable

Control gained over entities having material effect

• $13.1$ Name of entity (or group of entities)
• $13.2$ Consolidated profit (loss) from ordinary activities and extraordinary items after tax of the controlled entity (or group of entities) since the date in the current period on which control was acquired
• $13.3$ Date from which such profit has been calculated
• $13.4$ Profit (loss) from ordinary activities and extraordinary items after tax of the controlled entity (or group of entities) for the whole of the previous corresponding period

Loss of control of entities having material effect

• $14.1$ Name of entity (or group of entities)
• $14.2$ Consolidated profit (loss) from ordinary activities and extraordinary items after tax of the controlled entity (or group of entities) to the date of loss of control.
• $14.3$ Date to which such profit(loss) in item 14.2 has been calculated
• $14.4$ Consolidated profit (loss) from ordinary activities and extraordinary items after tax of the controlled entity (or group of entities) while controlled during the whole of the previous corresponding period
• 14.5 Contribution to consolidated profit (loss) from ordinary ordinary activities and extraordinary items from sale of interest leading to loss of control

Not applicable

Not applicable

Not applicable

Not applicable

Not applicable

Dividends (in the case of a trust, distributions)

• $15.1$ Date the dividend (distribution) is payable
• $15.2$ Record date to determine entitlements to the dividend (distribution) (ie, on the basis of proper instruments of transfer received by 5.00 pm if securities are not CHESS approved, or security holding balances established by 5.00 pm or such later time permitted by SCH Business Rules if securities are CHESS approved)
• $15.3$ If it is a final dividend, has it been declared? (Preliminary final report only)

Amount per security

ť

Not applicable

Not applicable

Not applicable

			Amount per	Franked	Amount per
			security	amount per	security of
				security at 30%	foreign source
				tax (see note 4)	dividend
	(Preliminary final report only)
15.4	Final dividend:	Current year	Nii ¢.	Nii ¢	Nil ¢
15.5		Previous year	Nii ¢	Nii c	Nil d
	(Half yearly and preliminary final reports)
15.6	Interim dividend:	Current year	Nii ¢.	Nii ¢	Nil ¢
15.7		Previous year	Nii ¢	Nii e	Nil c

Total dividend (distribution) per security (interim plus final)

Preliminary final report only)	Current year	Previous year
15.8 Ordinary securities	Nii c	Nil c
15.9 Preference securities	Nil c	Nil c

Half yearly report - interim dividend (distribution) on all securities or Preliminary final report - final dividend (distribution) on all securities

15.11	Preference securities (each class separately)	Nil	Nil
15.12	Other equity instruments
	(each class separately)	Nil	Nil
15.13	Total	Nil	Nil

The dividend or distribution plans shown below are in operation.

None in operation

The last date(s) for receipt of election notices for the dividend or distribution plans

Not applicable

Any other disclosures in relation to dividends (distributions). (For half yearly reports, provide details in accordance with paragraph 7.5(d) of AASB 1029 Interim Financial Reporting)

Appendix 4B Half-Yearly Report 31 December 2002

Details of aggregate share of profits (losses) of associates and joint venture entities

Group's share of associates' and joint venture entities': Previous Current corresponding period period \$A'000 \$A'000 $16.1$ Profit (loss) from ordinary activities before tax Not applicable Not applicable 16.2 Income tax on ordinary activities $16.3$ Profit (loss) from ordinary activities after tax 16.4 Extraordinary items net of tax 16.5 Net profit (loss) 16.6 Adjustments 16.7 Share of net profit (loss) of associates and joint venture entities

Material interests in entities which are not controlled entities

The economic entity has an interest (that is material to it) in the following entities. (If the interest was acquired or disposed of during either the current or previous corresponding period, indicate date of acquisition ("from dd/mm/yy") or disposal ("to dd/mm/yy").)

		Percentage of ownership		Contribution to net profit
	Name of entity	interest held at end of period		$(\text{loss})$ (item 1.9)
		or date of disposal
			Previous		Previous
		Current	corresponding	Current	corresponding
		period	period	period	period
				\$A'000	\$A'000
17.1	Equity accounted associates and	Not applicable		Not applicable
	joint venture entities
17.2	Total
17.3	Other material interests
17.4	Total

Issued and quoted securities at end of current period
(Description must include rate of interest and any redemption or conversion rights together with prices and dates)

Total number	Category of securities	Total number	Number quoted	Issue price per security (see note 14) (cents)	Amount paid up per security (see note 14) (cents)
18.1	Preference securities (description)	Nil
18.2	Changes during current period (a) Increases through issues (b) Decreases through returns of capital buybacks, redemptions
18.3	Ordinary securities	146,039,142	73,963,134
18.4	Changes during current period (a) Increases through issues (b) Decreases through returns of capital buybacks, redemptions	Nil
18.5	Convertible debt securities (description and conversion factor)	Nil
18.6	Changes during current period (a) Increases through issues (b) Decreases through securities matured, converted	Nil
18.7	Options (description and conversion factor)			Exercise price	Expiry date (if any)
	1 share for 1 option 16.7.07 options 30.6.09 options 1 share for 1 option	7,301,956 1,275,000	ΝiΙ ΝiΙ	\$0.25 \$0.50	16.07.07 30.06.09
18.8	Issued during current period	7,301,956
18.9	Exercised during current peirod	Nil
18.10	Expired during current period	Nil
18.11	Debentures (description)	Nil
18.12	Changes during current period (a) Increases through issues (b) Decreases through securities matured, converted	Nil
18.13	Unsecured notes (description)	Nil
18.14	Changes during current period Increases through issues Decreases through securities matured, converted	N II

Segment reporting

(Information on the business and geographical segments of the entity must be reported for the current period in accordance with AASB 1005: Segment Reporting and for half year reports. AASB 1029: Interim Financial Reporting. Because entities employ different structures a pro forma cannot be provided. Segment information in the layout employed in the entity's +accounts should be reported separately and attached to this report.)

Seaments

As the economic entity operates entirely in Australia and only in the field of mining, separate segment information is not presented in the Appendix 4B.

Comments by directors

(Comments on the following matters are required by ASX or, in relation to the half yearly report, by AASB 1029; Interim Financial Reporting. The comments do not take the place of the directors' report and statement (as required by the Corporations Act) and may be incorporated into the directors' report and statement. For both half yearly and preliminary final reports, if there are no comments in a section, state NIL. If there is insufficient space to comment, attach notes to this report.) Directors' Report attached to this Appendix 4B.

Basis of financial report preparation

• 19.1 If this report is a half yearly report, it is a general purpose financial report prepared in accordance with the listing rules and AASB 1029: Interim Financial Reporting. It should be read in conjunction with the last annual report and any announcements to the market made by the entity during the period. The financial statements in this report are "condensed financial statements" as defined in AASB 1029: Interim Financial Reporting. This report does not include all the notes of the type normally included in an annual financial report. [Delete if preliminary final report.]
• 19.2 Material factors affecting the revenues and expenses of the economic entity for the current period. In a half yearly report, provide explanatory comments about any seasonal or irregular factors affecting operations.

Nil

19.3 A description of each event since the end of the current period which has had a material effect and which is not already reported elsewhere in this Appendix or in attachments, with financial effect quantified (if possible).

Nil

19.4 Franking credits available and prospects for paying fully or partly franked dividends for at least the next year.

There are no franking credits available. The company is not expected to declare a dividend in the short term.

19.5 Unless disclosed below, the accounting policies, estimation methods and measurement bases used in this report are the same as those used in the last annual report. Any changes in accounting policies, estimation methods and measurement bases since the last annual report are disclosed as follows. (Disclose changes and differences in the half yearly report in accordance with AASB 1029: Interim Financial Reporting. Disclose changes in accounting policies in the preliminary final report in accordance with AASB 1001: Accounting Policies-Disclosure).

Nil

19.6 Revisions in estimates of amounts reported in previous interim periods. For half yearly reports the nature and amount of revisions in estimates of amounts reported in previous annual reports if those revisions have a material effect in this half year.

Not applicable

19.7 Changes in contingent liabilities or assets. For half yearly reports, changes in contingent liabilities and contingent assets since the last annual report.

No changes during the half-year

Additional disclosure for trusts

• $20.1$ Number of units held by the management company or responsible entity or their related parties.
• 20.2 A statement of the fees and commissions payable to the management company or responsible entity.

Identify:

initial service charges management fees other fees

Not applicable

Not applicable

Annual meeting

(Preliminary final report only)

The annual meeting will be held as follows:

Place Date

Time

Approximate date the annual report will be available

Not applicable
Not applicable
Not applicable
Not applicable

Compliance statement

This report has been prepared in accordance with AASB Standards, other AASB authoritative $\overline{1}$ pronouncements and Urgent Issues Group Consensus Views or other standards acceptable to ASX (see note 12).

Identify other standards used

• $\overline{2}$ This report, and the accounts upon which the report is based (if separate), use the same accounting policies.
• 3 This report does give a true and fair view of the matters disclosed (see note 2).
• This report is based on accounts to which one of the following applies. (tick one) $\overline{4}$

The accounts have been audited.

The accounts have been subject to review. ਚੋ

The accounts are in the process of being audited or subject to review.

The accounts have not yet been audited or reviewed.

• 5 If the audit report or review by the auditor is not attached, details of any qualifications are attached/will follow immediately they are available* (delete one). (Half yearly report only - the audit report or review by the auditor must be attached to this report if this report is to satisfy the requirements of the Corporations Act.)
• 6 The entity has a formally constituted audit committee.

hity R. Wood Sign here: $\sqrt{\ }$

Date:

5 March 2003

None

(Director/Company Secretary)

Print name: Philip R Wood

Notes

• 1 For announcement to the market. The percentage changes referred to in this section are the percentage changes calculated by comparing the current period's figures with those for the previous corresponding period. Do not show percentage changes if the change is from profit to loss or loss to profit, but still show whether the change was up or down. If changes in accounting policies or procedures have had a material effect on reported figures, do not show either directional or percentage changes in profits. Explain the reason for the omissions in the note at the end of the announcement section. Entities are encouraged to attach notes or fuller explanations of any significant changes to any of the items in page 1. The area at the end of the announcement section can be used to provide a cross reference to any such attachment.
• $\overline{2}$ True and fair view If this report does not give a true and fair view of a matter (for example, because compliance with an Accounting Standard is required) the entity must attach a note providing additional information and explanations to give a true and fair view.
• $\overline{3}$ Condensed consolidated statement of financial performance
• Item 1.1 The definition of "revenue" and an explanation of "ordinary activities" are set out in AASB 1004: Revenue, and AASB 1018: Statement of Financial Performance.
• Item 1.6 This item refers to the total tax attributable to the amount shown in item 1.5. Tax includes income tax and capital gains tax (if any) but excludes taxes treated as expenses from ordinary activities (eq. fringe benefits tax).
• $\overline{A}$ Income tax If the amount provided for income tax in this report differs (or would differ but for compensatory items) by more than 15% from the amount of income tax prima facie payable on the profit before tax, the entity must explain in a note the major items responsible for the difference and their amounts. The rate of tax applicable to the franking amount per dividend should be inserted in heading for the column "Franked amount per security at % tax" for items 15.4 to 15.7.
• 5 Condensed consolidated statement of financial position

Format The format of the consolidated statement of financial position should be followed as closely as possible. However, additional items may be added if greater clarity of exposition will be achieved, provided the disclosure still meets the requirements of AASB 1029: Interim Financial Reporting, and AASB 1040: Statement of Financial Position. Also, banking institutions, trusts and financial institutions may substitute a clear liquidity ranking for the Current/Non-Current classification.

Basis of revaluation If there has been a material revaluation of non-current assets (including investments) since the last +annual report, the entity must describe the basis of revaluation adopted. The description must meet the requirements of AASB 1010: Accounting for the Revaluation of Non-Current Assets. If the entity has adopted a procedure of regular revaluation, the basis for which has been disclosed and has not changed, no additional disclosure is required.

• Condensed consolidated statement of cash flows For definitions of "cash" and other terms used in 6 this report see AASB 1026: Statement of Cash Flows. Entities should follow the form as closely as possible, but variations are permitted if the directors (in the case of a trust, the management company) believe that this presentation is inappropriate. However, the presentation adopted must meet the requirements of AASB 1026. Mining exploration entities may use the form of cash flow statement in Appendix 5B.
• $\overline{7}$ Net tangible asset backing Net tangible assets are determined by deducting from total tangible assets all claims on those assets ranking ahead of the +ordinary securities (ie, all liabilities, preference shares, outside +equity interests etc). +Mining entities are not required to state a net tangible asset backing per ordinary security.

• $\mathbf{R}$ Gain and loss of control over entities The gain or loss must be disclosed if it has a material effect on the accounts. Details must include the contribution for each gain or loss that increased or decreased the entity's consolidated profit (loss) from ordinary activities and extraordinary items after tax by more than 5% compared to the previous corresponding period.

• Rounding of figures This report anticipates that the information required is given to the nearest \$1,000. $\circ$ If an entity reports exact figures, the \$A'000 headings must be amended. If an entity qualifies under ASIC Class Order 98/0100 dated 10 July 1998, it may report to the nearest million dollars, or to the nearest \$100,000. and the \$A'000 headings must be amended.

• $10$ Comparative figures Comparative figures are to be presented in accordance with AASB 1018 or AASB 1029 Interim Financial Reporting as appropriate and are the unadjusted figures from the latest annual or half year report as appropriate. However, if an adjustment has been made
• $11$ Additional information. An entity may disclose additional information about any matter, and must do so if the information is material to an understanding of the reports. The information may be an expansion of the material contained in this report, or contained in a note attached to the report. The requirement under the listing rules for an entity to complete this report does not prevent the entity issuing reports more frequently. Additional material lodged with the ASIC under the Corporations Act must also be given to ASX. For example, a director's report and declaration, if lodged with the ASIC, must be given to ASX.
• 12 Accounting Standards ASX will accept, for example, the use of International Accounting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if one exists) must be complied with.
• Corporations Act financial statements This report may be able to be used by an entity required to $13$ comply with the Corporations Act as part of its half-year financial statements if prepared in. accordance with Australian Accounting Standards.
• 14 Issued and quoted securities The issue price and amount paid up is not required in items 18.1 and 18.3 for fully paid securities.
• 15 Details of expenses AASB 1018 requires disclosure of expenses from ordinary activities according to either their nature or function. For foreign entities, there are similar requirements in other accounting standards accepted by ASX. AASB ED 105 clarifies that the disclosures required by AASB 1018 must be either all according to nature or all according to function. Entities must disclose details of expenses using the layout (by nature or function) employed in their accounts.

The information in lines 1.23 to 1.27 may be provided in an attachment to Appendix 4B.

Relevant Items AASB 1018 requires the separate disclosure of specific revenues and expenses which are not extraordinary but which are of a size, nature or incidence that disclosure is relevant in explaining the financial performance of the reporting entity. The term "relevance" is defined in AASB 1018. There is an equivalent requirement in AASB 1029: Interim Financial Reporting. For foreign entities, there are similar requirements in other accounting standards accepted by ASX.

• 16 Dollars If reporting is not in A\$, all references to \$A must be changed to the reporting currency. If reporting is not in thousands of dollars, all references to "000" must be changed to the reporting value.
• $17$ Discontinuing operations

Half vearly report

All entities must provide the information required in paragraph 12 for half years beginning on or after 1 July 2001.

Preliminary final report

Entities must either provide a description of any significant activities or events relating to discontinuing operations equivalent to that required by paragraph 7.5 (g) of AASB 1029: Interim Financial Reporting, or, the details of discontinuing operations they are required to disclose in their accounts in accordance with AASB 1042 Discontinuing Operations.

In any case the information may be provided as an attachment to this Appendix 4B.

$18$ Format

This form is a Word document but an entity can re-format the document into Excel or similar applications for submission to the Companies Announcements Office in ASX.

Directors' Report

Your Directors present their report on the Consolidated Entity, consisting of Intec Ltd (the Company) and the entity Intec Copper Pty Ltd (the Controlled Entity) that the Company controlled throughout the half-year ended 31 December 2002.

Directors

The following persons were Directors of the Company during the whole of the half-year and up to the date of this report:

J Philip Evans, A John Moves, Kenneth J Severs, Gordon L Toll and Philip R Wood.

Operating Results

The consolidated result for the half-year of the Consolidated Entity was a loss of $$1,219,000$ (2001 loss of \$2,024,000).

Review of Operations

During the half-year, the Company continued the development and commercialisation of its proprietary technologies. Copper electrowinning cell validation, engineering design package preparation, analytical project modelling and copper, zinc, nickel and refractory gold concentrates testwork were all progressed satisfactorily.

The negotiation of technical and financial participation in feasibility studies for projects at Townsville (Queensland, Australia) and Port Hardy (British Columbia, Canada) were put on hold, due principally to the prevailing historically low copper concentrates treatment and refining charges worldwide.

Events Subsequent to Balance Date

There has not arisen in the interval between 31 December 2002 and the date of this report any item, transaction or event of a material and unusual nature likely, in the opinion of the Directors, to affect significantly the operations of the Company, the results of those operations, or the state of affairs of the Company in subsequent financial vears.

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

Philip R. Wood

Philip R Wood Managing Director and Chief Executive Officer

5 March 2003

Declaration by Directors

The Directors declare that the financial statements and notes set out on pages 1 to 17 of the Appendix 4B comply with Accounting Standards, the Corporations Regulations 2001 and other mandatory professional reporting requirements and give a true and fair view of the Consolidated Entity's financial position as at 31 December 2002 and of its performance, as represented by the results of its operations and its cash flows, for the half-year ended on that date.

In the Directors' opinion there are reasonable grounds to believe that Intec Ltd 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.

Philip R. Wood

Philip R Wood Managing Director and Chief Executive Officer

Dated at Sydney this 5th day of March 2003

Independent review report to the members of Intec Ltd

PricewaterhouseCoopers ABN 52 780 433 757

Darling Park Tower 2 201 Sussex Street GPO BOX 2650 SYDNEY NSW 1171 DX 77 Sydney Australia www.pwcglobal.com/au Telephone +61 2 8266 0000 Facsimile +61 2 8266 9999

Statement

Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the financial report, comprising pages 1 to 17 of the half vearly report included in the attached Appendix 4B of the Australian Stock Exchange (ASX) Listing Rules and the directors' declaration attached thereto is not presented in accordance with:

• the Corporations Act 2001 in Australia, including giving a true and fair view of the financial position of the Intec Group (defined below) as at 31 December 2002 and of its performance for the half-year ended on that date
• Accounting Standard AASB 1029: Interim Financial Reporting and other mandatory professional reporting requirements in Australia, the Corporations Regulations 2001 and ASX Listing Rules relating to half yearly financial reports.

This statement must be read in conjunction with the following explanation of the scope and summary of our role as auditor.

Scope and summary of our role

The financial report - responsibility and content

The preparation of the financial report for the half-year ended 31 December 2002 is the responsibility of the directors of Intec Ltd. It includes the financial statements for the Intec Group (the Group), which incorporates Intec Ltd (the Company) and the entities it controlled during the half-year ended 31 December 2002.

The auditor's role and work

We conducted an independent review of the financial report in order for the Company to lodge the financial report with the Australian Securities & Investments Commission and the ASX. Our role was to conduct the review in accordance with Australian Auditing Standards applicable to review engagements. Our review did not involve an analysis of the prudence of business decisions made by the directors or management.

This review was performed in order to state whether, on the basis of the procedures described, anything has come to our attention that would indicate that the financial report does not present fairly a view in accordance with the Corporations Act 2001, Accounting Standard AASB 1029: Interim Financial Reporting and other mandatory professional reporting requirements in Australia, the Corporations Regulations 2001 and ASX Listing Rules relating to half yearly financial reports, which is consistent with our understanding of the Group's financial position, and its performance as represented by the results of its operations and cash flows.

PriceWATERHOUSE COPERS

The review procedures performed were limited primarily to:

• inquiries of company personnel of certain internal controls, transactions and individual items
• analytical procedures applied to financial data.

These procedures do not provide all the evidence that would be required in an audit, thus the level of assurance provided is less than that given in an audit. We have not performed an audit, and accordingly, we do not express an audit opinion.

Independence

As auditor, we are required to be independent of the Group and free of interests which could be incompatible with integrity and objectivity. In respect of this engagement, we followed the independence requirements set out by The Institute of Chartered Accountants in Australia, the Corporations Act 2001 and the Auditing and Assurance Standards Board.

In addition to our statutory audit and review work, we were engaged to undertake other services for the Group. In our opinion the provision of these services has not impaired our independence.

PricewaterhouseCoopers

Anden Ineddor.

Andrew Sneddon Partner

Sydney 5 March 2002