SCIDEV LTD — Interim / Quarterly Report 2013

Feb 24, 2013

ABN 25 001 150 849

P.O. Box 1507 North Sydney NSW 2059 Level 3, 2 Elizabeth Plaza North Sydney NSW 2060 Australia

Phone: (+61 2) 9954 7888 Fax: (+61 2) 8904 0334 Email: mail@intec.com.au Website: www.intec.com.au

ASX code: INL

HALF-YEARLY REPORT

31 DECEMBER 2012

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ASX code: INL

Cor orate Director p y

Directors

Trevor A Jones (Chairman and Non-executive Director) Kieran G Rodgers (Managing Director) James R G Bell (Non-executive Director)

Group Company Secretary

Robert J Waring

Share Registry

Boardroom Pty Limited Level 7, 207 Kent Street Sydney NSW 2000 Australia PO Box 3993 Sydney NSW 2001 Australia Telephone: (+61 2) 9290 9600 Facsimile: (+61 2) 9279 0664

Website: www.boardroomlimited.com.au

Senior Management

Dave L Sammut (Corporate Development Manager) Adam J Randall (General Manager – Tasmania)

Principal Registered Office

P.O. Box 1507 North Sydney NSW 2059 Australia Level 3, 2 Elizabeth Plaza North Sydney NSW 2060 Australia Telephone: (+61 2) 9954 7888 Facsimile: (+61 2) 8904 0334 Email: mail@intec.com.au Website: www.intec.com.au

Burnie Research Facility

P.O. Box 666 20 River Road Burnie TAS 7320 Australia Telephone: (+61 3) 6431 6156 Facsimile: (+61 3) 6431 3629

Stock Exchange Listings and Trading Platform Listings

Intec Ltd shares are listed or traded on: the Australian Securities Exchange (Code: INL); the Deutsche Börse (Code: INF); and as American Depository Receipts on: The OTC Markets (Code: ICLJY)

Auditor

Crowe Horwath Sydney Level 15, 1 O’Connell Street Sydney NSW 2000 Australia

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ASX code: INL

Contents	**Page **
Directors’ report	4-5
Consolidated condensed statement of comprehensive income	6
Consolidated condensed statement of financial position	7
Consolidated condensed statement of changes in equity	8
Consolidated condensed statement of cash flows	9
Notes to the financial statements	10-11
Directors’ declaration	12
Independent review report	13-14
Auditor’s independence declaration	15

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ASX code: INL
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-4Intec Ltd

DIRECTORS’ REPORT

Your Directors present their report on the consolidated entity consisting of Intec Ltd (Intec or the Company) and the entities it controlled (the Group) for the half-year ended 31 December 2012.

Directors

The names of the Company’s Directors in office during the half-year and until the date of this report are set out below.

Trevor A Jones (Chairman and Non-executive Director) Kieran G Rodgers (Managing Director) James R G Bell (Non-executive Director)

Review of Operations

The Group incurred a loss after providing for income tax for the half-year to 31 December 2012 of $821,000 (2011 – loss of $3,272,000). The size of the loss was in part due to the accounting treatment of an outstanding invoice for the IRC project.

Revenues from continuing operations were generated from ongoing recycling operations at Burnie, sales of low-grade zinc product, the IRC Project, receipt of an R & D Tax Offset and other minor sources.

The Group incurred net cash outflows from operations of $683,000 for the half-year ended 31 December 2012. As of balance date, the Group had net assets of $5,850,000 and cash balances of $3,552,000.

IRC Project

The laboratory component of the IRC Project was completed during the June 2012 Quarter. During the half-year the focus of Intec’s activity shifted to reporting and engineering. An ‘Interim Milestone 1 Report’ was published in July 2012, and the ‘Final Milestone 1 Report’ was published in August 2012.

Furthermore, the Company’s 50% owned entity, Intec International Projects Pty Ltd (IIP), completed its engineering package for the pilot plant setup. IIP is currently awaiting an overdue payment before the engineering package is released to the client, and expects that this payment will be released as soon as possible to limit the delays being caused by the overdue payment. Following handover of the engineering package, the local contractor will require a period of time to enact the equipment setup, following which pilot plant operations can then commence.

The Company continues carefully to monitor the delivery of its services to the IRC Project, in order to remain compliant with its obligations under both Australian and international law, including the most recent updates to the regulatory regime.

Burnie Research Facility

During the period the Burnie Research Facility was operated on a campaign basis to treat waste material from the ACL Group (ACL). The five-week campaign treated waste accumulated from approximately nine months of ACL operations. The treatment campaign was profitable on a standalone cash basis before consideration of certain fixed costs and non-cash items.

Low-Grade Zinc Blending Project

Following completion of operations and a positive environmental audit of the Victorian stockpile site during the June quarter of 2012, EPA Victoria returned the remaining $2.387 million security bond during the half-year. The Group also exited the Footscray storage site and recovered the full amount of its tenancy bond.

Final payments on all outstanding shipments of low-grade zinc material were received during the half-year. In addition, $0.313 million of the remaining portion of the EPA Tasmania security bond was returned. A residual bond of $40,000 remains in place at Hellyer pending the completion of minor remediation works.

Hellyer Royalty

During the half-year, the Company finalised an agreement with Bass Metals Limited (BSM) to re-structure the Hellyer Royalty. This restructuring resulted in Intec being granted a 2.5% Net Smelter Return Royalty in relation to any base metals produced from BSM’s Hellyer-Que River tenement portfolio. In addition, Intec was granted 15 million BSM shares for nil consideration. The Company received a payment of $454,000 during the half-year from BSM’s processing activities at Hellyer during the June 2012 Quarter under the previous Hellyer Royalty.

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ASX code: INL

-5Intec Ltd

Corporate

The Company’s Annual General Meeting (AGM) was held on 13 November 2012. All resolutions were passed. The Company continues with the strategy as outlined in the Chairman’s address at the AGM:

1. continuance of the IRC Project, subject to on-going Federal Government approvals and the receipt of pre-payments from the client, as it represents a material body of paid commercial work that covers the cost of employees assigned to the project;

2. continued investigation of alternative value realisation strategies for certain components of its technology portfolio including the Burnie Research Facility;

3. preservation of its financial position to all extents possible, without resort to shareholders; and

4. the investigation of corporate and asset acquisition opportunities.

On 27 November 2012, the Company announced a notice of intention to sell unmarketable parcels of shares. The time for relevant shareholders to notify the Company expired on 11 January 2013.

In total, 1,964 shareholders holding in aggregate 15,507,624 shares declined to retain their shareholdings. The aggregated shareholding was sold on-market on 18 January 2013. The proceeds from the sale have been distributed to relevant shareholders after deduction of brokerage costs in accordance with the Company’s Constitution.

Events occurring after the reporting date

Subsequent to the half-year end, the Company received an R & D Tax Offset for an amount of $497,000. This receipt has been included in the financial statements, as a receivable, for the period ending 31 December 2012. No other events have occurred subsequent to 31 December 2012 requiring disclosure in, or amendment to, these interim financial statements.

Auditor’s Independence Declaration

An independence declaration from the Company’s auditor, Crowe Horwath, Sydney is included on page 15 of the financial report.

This report is made in accordance with a resolution of the Company’s Directors .

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Kieran G. Rodgers

Managing Director

25 February 2013

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ASX code: INL

Intec Ltd

-6-

CONSOLIDATED CONDENSED STATEMENT OF COMPREHENSIVE INCOME FOR THE HALF-YEAR ENDED 31 DECEMBER 2012

Revenue from continuing operations Administration expense Demonstration plant expenses Depreciation and amortisation expense Employee benefits expense Engineering and other consultants expenses Finance costs Impairment expense Metals recovery costs Occupancy expense Research and development expenses Other expenses Profit/(loss) before income tax Income tax expense/(benefit) Profit/(loss) for the half-year Other comprehensive income/(loss) Income tax relating to components of other comprehensive income Other comprehensive income/(loss) for the period net of income tax Total comprehensive income/(loss) for the period Profit/(loss) is attributable to: Owners of Intec Ltd Non-controlling interests Basic Earnings per share (cents per share) Diluted Earnings per share (cents per share)	Half-year 31 December 2012 31 December 2011 $’000 $’000 965 597 (191) (299) (50) (145) (406) (428) (692) (1,267) (152) (96) (3) (20) (35) (139) (119) (1,227) (136) (174) (2) (20) - (54)
	(821) (3,272) - -
	(821) (3,272) - - - -
	- -
	(821) (3,272)
	(866) (3,322) 45 50
	(821) (3,272)
	(0.27) (1.51) (0.27) (1.51)

The accompanying notes form part of these financial statements.

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ASX code: INL

Intec Ltd

-7-

CONSOLIDATED CONDENSED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2012

Notes Current assets Cash and cash equivalents Trade and other receivables Cash on Deposit - Environmental bonds 3 Inventories Other current assets Total current assets Non-current assets Trade and other receivables Other financial assets 4 Plant and equipment 5 Intangible assets Total non-current assets Total assets Current liabilities Trade and other payables Deferred revenue 6 Provisions Total current liabilities Non-current liabilities Other Total non-current liabilities Total liabilities Net assets Equity Contributed equity Reserves Accumulated losses Total equity attributable to equity holders of the Company Non-controlling interest Total equity	31 December 2012 30 June 2012 $’000 $’000 3,552 1,400 1,154 526 40 2,740 33 33 42 18
	4,821 4,717
	39 386 115 46 1,642 2,041 10 10
	1,806 2,483
	6,627 7,200
	278 407 499 - - 121
	777 528
	- 1
	- 1
	777 529
	5,850 6,671
	71,642 71,642 2,624 2,624 (68,520) (67,654)
	5,746 6,612 104 59
	5,850 6,671

The accompanying notes form part of these financial statements.

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ASX code: INL

-8Intec Ltd

CONSOLIDATED CONDENSED STATEMENT OF CHANGES IN EQUITY FOR THE HALF-YEAR ENDED 31 DECEMBER 2012

Balance at 1 July 2011 Employee options granted Total comprehensive income for the period Balance at 31 December 2011 Balance at 1 July 2012 Employee options granted Total comprehensive income for the period Balance at 31 December 2012	Contributed Equity Reserves Accumulated Losses Non Controlling Interest Total $’000 $’000 $’000 $’000 $’000 70,416 2,577 (64,556) - 8,437 - - - - 47 - 47 (3,322) 50 (3,272)
	70,416 2,624 (67,878) 50 5,212
	$’000 $’000 $’000 $’000 $’000 71,642 2,624 (67,654) 59 6,671 - - - - - - - (866) 45 (821)
	71,642 2,624 (68,520) 104 5,850

The accompanying notes form part of these financial statements.

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ASX code: INL

Intec Ltd

-9-

CONSOLIDATED CONDENSED STATEMENT OF CASH FLOWS FOR THE HALF-YEAR ENDED 31 DECEMBER 2012

FOR THE HALF-YEAR ENDED 31 DECEMBER 2012
Cash flows from operating activities Receipts from customers Payment to suppliers and employees Interest paid Interest received Other income Net cash (outflows)/inflows from operating activities Cash flows from investing activities Sale/(Acquisition) of plant and equipment Proceeds from security deposits refunded Net cash (outflows)/inflows from investing activities Net increase/(decrease) in cash held Cash at the beginning of the financial period Cash at the end of the financial period	Half-year 31 December 2012 31 December 2011 $’000 $’000 761 1,067 (1,535) (3,705) 0 (19) 91 148 - 97
	(683) (2,412)
	10 (240) 2,825 383
	2,835 143
	2,152 (2,269) 1,400 2,557
	3,552 288

The accompanying notes form part of these financial statements.

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ASX code: INL

-10- Intec Ltd

NOTES TO THE FINANCIAL STATEMENTS

NOTE 1: BASIS OF PREPARATION OF THE HALF-YEAR FINANCIAL REPORT

This condensed consolidated financial report for the half-year to 31 December 2012 is a general-purpose financial report, which has been prepared in accordance with the requirements of the Corporations Act 2001, Accounting Standard AASB 134 “Interim Financial Reporting” and other mandatory professional reporting requirements.

For the purpose of preparing the half-year financial report, the half-year has been treated as a discrete reporting period.

The half-year financial report 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 Group as the annual financial report.

The half-year financial report should be read in conjunction with the Annual Financial Report of Intec as at 30 June 2012. It is also recommended that the half-year financial report be considered together with any public announcements made by Intec during the halfyear ended 31 December 2012 in accordance with the continuous disclosure obligations arising under the Corporations Act 2001.

Significant Accounting Policies Adopted During The Half-Year

No significant accounting policies have been adopted in the current half year.

The accounting policies are consistent with those of the previous financial year.

Revenue from continuing operations of $965,000 are shown in the following table:

Revenue from continuing operations Technical income Interest received Foreign currency exchange gain/(loss) Other income Total revenue from continuing operations	31 December 2012 31 December 2011 $’000 $’000 308 30 99 129 24 20 534 418
	965 597

Revenues from continuing operations were generated from ongoing recycling operations at Burnie, sales of low-grade zinc product, the IRC Project, receipt of an R & D Tax Offset and other minor sources.

Going Concern Basis

This financial report has been prepared on a going concern basis. The Directors consider the Group has adequate funding and therefore, no adjustments have been made to the financial report that might be necessary should the Group not continue as a going concern. Accordingly, the Directors have prepared the interim financial statements on a going concern basis.

NOTE 2: SEGMENT INFORMATION

The Group currently operates in one business segment. However, a discontinued operation relating to previous activities at the Hellyer Minesite, now owned by another party, does have a continuing impact on the financial statements; refer Note 4 – Other Financial Assets.

NOTE 3: CASH ON DEPOSIT - ENVIRONMENTAL BONDS

An environmental bond of $40,000 (2011 – total environmental bonds outstanding $2,740,000) remains lodged with the Tasmanian Government in respect of a prior stockpile of EAF dust at the Hellyer Minesite, now owned by another party. The Tasmanian bond is classified as a current asset. There is no provision raised against the Tasmanian bond. Since 30 June 2012 all other environmental bonds have been repaid.

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ASX code: INL

-11- Intec Ltd

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

NOTE 4: OTHER FINANCIAL ASSETS

The Group holds an investment in BSM. The closing market price at 31 December 2012 of BSM shares was 0.6 cents and the BSM options were 0.1 cents valuing the Group’s holding at $111,700 (18,100,000 shares at 0.6 cents/share and 3,100,000 options at 0.1 cents/option). An impairments expense of $353,300 was therefore raised against the BSM investment book value of $465,000.

NOTE 5: PLANT & EQUIPMENT

Burnie Research Facility

The carrying value of the Burnie Research Facility is $1,358,368 at 31 December 2012. The Directors consider that no adjustment is currently necessary to the carrying value of the Burnie Research Facility at 31 December 2012.

NOTE 6: DEFERRED REVENUE

Deferred revenue refers to the recognition of a portion of the second payment due in relation to the IRC project.

NOTE 7: EVENTS OCCURING AFTER REPORTING DATE

The Research and Development tax offset claim, accounted for in the December half year was received in January 2013.

No events have occurred subsequent to 31 December 2012 requiring disclosure in, or amendment to, these interim financial statements.

NOTE 8: ACCOUNTING STANDARDS ISSUED BUT NOT YET APPLIED BY THE ENTITY

In December 2009, the AASB issued AASB 9 Financial Instruments which addresses the classification and measurement of financial assets and is likely to affect the Group’s accounting for its financial assets. The standard is not applicable until 1 January 2013 but is available for early adoption, but the Group has not yet done so.

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ASX code: INL

-12- Intec Ltd

DIRECTORS’ DECLARATION

In the Directors’ opinion:

• (a) the financial statements and notes set out on pages 6 to 11 are in accordance with the Corporations Act 2001, including:

• (i) complying with Accounting Standards, the Corporations Regulations 2001 and other mandatory professional reporting requirements ; and

• (ii) giving a true and fair view of the Group’s financial position as at 31 December 2012 and of its performance for the half-year ended on that date; and

• (b) there are reasonable grounds to believe that the Group 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 of Intec Ltd.

On behalf of the Board

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Kieran G. Rodgers Managing Director

25 February 2013

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-13- Intec Ltd

INDEPENDENT AUDITOR’S REVIEW REPORT TO THE MEMBERS OF INTEC LTD

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ASX code: INL

-14- Intec Ltd

INDEPENDENT AUDITOR’S REVIEW REPORT TO THE MEMBERS OF INTEC LTD

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ASX code: INL

-15- Intec Ltd

AUDITOR’S INDEPENDENCE DECLARATION

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ASX code: INL