Skip to main content

AI assistant

Sign in to chat with this filing

The assistant answers questions, extracts KPIs, and summarises risk factors directly from the filing text.

UNICO SILVER LIMITED Interim / Quarterly Report 2021

Mar 10, 2021

65986_rns_2021-03-10_bef9bcfc-60f7-4bd3-beef-80dcc6447432.pdf

Interim / Quarterly Report

Open in viewer

Opens in your device viewer

==> picture [87 x 33] intentionally omitted <==

E2 Metals Limited

ABN 34 116 865 546

Half Year Report - 31 December 2020

E2 Metals Limited
Contents
31 December 2020

Corporate directory
2
Directors' report 3
Auditor's independence declaration 5
Statement of profit or loss and other comprehensive income 6
Statement of financial position 7
Statement of changes in equity 8
Statement of cash flows 9
Notes to the financial statements 10
Directors' declaration 15
Independent auditor's review report to the members of E2 Metals Limited 16

1

E2 Metals Limited Corporate directory 31 December 2020

==> picture [87 x 33] intentionally omitted <==

Directors Ms Melanie Leydin (Chairperson) Mr Todd Williams (Managing Director) Mr Alastair Morrison (Non-executive Director) Company Secretary Ms Melanie Leydin Registered office Level 4 100 Albert Road South Melbourne VIC 3205 Phone: 03 9692 7222 Principal place of business Level 3 100 Pirie Street Adelaide SA 5000 Share register Link Market Services Tower 4, 727 Collins Street Docklands VIC 3008 Phone: 1300 554 474 Auditor William Buck Level 20, 181 William Street Melbourne VIC 3000 Stock exchange listing E2 Metals Limited shares are listed on the Australian Securities Exchange (ASX code: E2M)

2

E2 Metals Limited Directors' report 31 December 2020

==> picture [87 x 33] intentionally omitted <==

The directors present their report, together with the financial statements, on the consolidated entity (referred to hereafter as the 'Consolidated entity') consisting of E2 Metals Limited (referred to hereafter as the 'Company' or 'parent entity') 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 E2 Metals Limited during the whole of the half-year and up to the date of this report, unless otherwise stated:

Ms Melanie Leydin (Chairperson) Mr Todd Williams (Managing Director) Mr Alastair Morrison (Non-executive Director)

Principal activities

During the half-year the principal continuing activities of the Consolidated entity consisted of exploration and evaluation of mineral deposits in Australia and Argentina, together with reviewing other asset opportunities.

Review of operations

The loss for the Consolidated entity after providing for income tax and non-controlling interest amounted to $1,672,660 (31 December 2019: $1,435,225).

Operating results

Operating expenses for the half year was $3,230,486, an increase of $1,514,279 over the corresponding prior period (2019: $1,716,207). This was mainly due to $1.14m increase in cost on the exploration activities and increase in the administration expenses by $0.25m mainly driven by $0.18m foreign exchange loss on cash and cash equivalents during the half year. During the half year, the Consolidated entity had $1.25m (2019: nil) gain from the sale of Argentine CCL bonds which were acquired in US Dollars and liquidated in Argentine Peso as part of transferring the operating working capital to the Group’s Argentine subsidiary for exploration activities.

Financial position

Net assets have increased by $12,402,185 from $3,907,102 at 30 June 2020 to $16,309,287. This was mainly driven by a increase in working capital due to $14.4m capital raised (net of transaction costs) during the half year.

Review of operations

During the six months to 31 December 2020, the Consolidated entity remained focused on exploration within its flagship Conserrat gold and silver project located in the Santa Cruz province, Argentina.

Santa Cruz Gold Silver Project

E2 Metals holds an 80% interest in exploration titles totalling 90,000 Ha located in the Santa Cruz province of Argentina prospective for Low Sulphidation (LS) Epithermal vein deposits associated with Jurassic age volcanic rocks of the Deseado Massif geological complex. This includes four principal projects located along trend from established mining districts.

The Company’s principal focus continues to be the Conserrat project centred 20km west-northwest of AngloGold Ashanti’s Cerro Vanguardia mine. Exploration works during the reporting period included a combined 7331m Reverse Circulation (RC) and Diamond drill program and an Electrical Tomography geophysical program. On 28 October 2020, the Company announced the discovery of high-grade gold and silver mineralisation (18m at 47gpt Au and 208gpt Ag from 66m) at the Mia prospect, located in the south-eastern project area. Exploration work programs at Conserrat remain ongoing.

Rio Negro Gold Silver Project

E2 Metals holds an 80% interest in exploration titles totalling 37,979Ha and 100% interest in titles totalling 50,790Ha, located in the Rio Negro province of Argentina prospective for gold and silver deposits. Work was limited to desktop studies, data compilation and regional target generation.

Cobar Project, New South Wales

E2 holds a 100% interest in a 175km[2 ] land package over the historic Mount Hope copper gold district located in the Cobar Superbasin, New South Wales. Work was limited to desktop studies, data compilation and regional target generation.

Significant changes in the state of affairs

There were no significant changes in the state of affairs of the Consolidated entity during the financial half-year.

3

E2 Metals Limited Directors' report 31 December 2020

==> picture [87 x 33] intentionally omitted <==

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 immediately after this directors' report.

This report is made in accordance with a resolution of directors, pursuant to section 306(3)(a) of the Corporations Act 2001.

On behalf of the directors

==> picture [113 x 23] intentionally omitted <==

_________ Todd Williams Managing Director

10 March 2021

4

AUDITOR’S INDEPENDENCE DECLARATION UNDER SECTION 307C OF THE CORPORATIONS ACT 2001 TO THE DIRECTORS OF E2 METALS LIMITED

I declare that, to the best of my knowledge and belief during the half-year ended 31 December 2020 there have been:

  • no contraventions of the auditor independence requirements as set out in the Corporations Act 2001 in relation to the review; and

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

==> picture [134 x 25] intentionally omitted <==

William Buck Audit (Vic) Pty Ltd ABN: 59 116 151 136

==> picture [102 x 43] intentionally omitted <==

N.S. Benbow Director

Dated this 10th day of March, 2021

E2 Metals Limited Statement of profit or loss and other comprehensive income For the half-year ended 31 December 2020

==> picture [87 x 33] intentionally omitted <==

Note
Revenue
Grant and other income
Interest income
Investment income
4

Expenses
Administration expenses
Corporate expense
Employment expenses
Exploration expenses

Loss before income tax expense

Income tax expense

Loss after income tax expense for the half-year

Other comprehensive loss
Items that may be reclassified subsequently to profit or loss
Foreign currency translation
Other comprehensive loss for the half-year, net of tax
Total comprehensive loss for the half-year

Loss for the half-year is attributable to:
Non-controlling interest
Owners of E2 Metals Limited

Total comprehensive loss for the half-year is attributable to:
Non-controlling interest
Owners of E2 Metals Limited

Basic earnings/(loss) per share
10
Diluted earnings/(loss) per share
10
Consolidated
31 December
2020
31 December
2019
$
$
29,865
-
4,007
12,333
1,253,710
-
(338,763)
(89,514)
(268,030)
(172,503)
(154,434)
(130,177)
(2,469,259)
(1,324,013)
(1,942,904)
(1,703,874)
-
-
(1,942,904)
(1,703,874)
(86,478)
(15,399)
(86,478)
(15,399)
(2,029,382)
(1,719,273)
(270,244)
(268,649)
(1,672,660)
(1,435,225)
(1,942,904)
(1,703,874)
(180,568)
(262,776)
(1,848,814)
(1,456,497)
(2,029,382)
(1,719,273)
Cents
Cents
(1.24)
(1.56)
(1.24)
(1.56)
(1,942,904)
-
(1,942,904)
(86,478)
(86,478)
(2,029,382)
(270,244)
(1,672,660)
(1,942,904)
(180,568)
(1,848,814)
(2,029,382)
Cents
(1.24)
(1.24)

The above statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes

6

E2 Metals Limited Statement of financial position As at 31 December 2020

==> picture [87 x 33] intentionally omitted <==

Note
Assets
Current assets
Cash and cash equivalents
GST and other receivables
5
Other assets
Total current assets
Non-current assets
GST and other receivables
5
Property, plant and equipment
Security deposits
Total non-current assets
Total assets

Liabilities
Current liabilities
Trade and other payables
6
Employee benefits
Total current liabilities
Non-current liabilities
Employee benefits
Total non-current liabilities
Total liabilities

Net assets

Equity
Issued capital
7
Reserves
Accumulated losses
Equity attributable to the owners of E2 Metals Limited
Non-controlling interest
Total equity
Consolidated
31 December
2020
30 June 2020
$
$
15,589,127
3,564,498
546,626
322,098
28,695
43,195
16,164,448
3,929,791
126,338
19,616
87,765
-
30,000
30,000
244,103
49,616
16,408,551
3,979,407
78,683
64,741
18,330
6,459
97,013
71,200
2,251
1,105
2,251
1,105
99,264
72,305
16,309,287
3,907,102
29,041,443
14,562,344
(46,649)
177,037
(11,821,079)
(10,148,419)
17,173,715
4,590,962
(864,428)
(683,860)
16,309,287
3,907,102
16,164,448
126,338
87,765
30,000
244,103
16,408,551
78,683
18,330
97,013
2,251
2,251
99,264
16,309,287
29,041,443
(46,649)
(11,821,079)
17,173,715
(864,428)
16,309,287

The above statement of financial position should be read in conjunction with the accompanying notes

7

E2 Metals Limited Statement of changes in equity For the half-year ended 31 December 2020

==> picture [87 x 33] intentionally omitted <==

Consolidated
Balance at 1 July 2019
Loss after income tax expense
for the half-year
Other comprehensive
income/(loss) for the half-year,
net of tax
Total comprehensive loss for
the half-year
Reclassification of Hauraki
reserve
Transactions with owners in
their capacity as owners:
Share-based payments
Balance at 31 December 2019

Consolidated
Balance at 1 July 2020
Loss after income tax expense
for the half-year
Other comprehensive
income/(loss) for the half-year,
net of tax
Total comprehensive loss for
the half-year
Transactions with owners in
their capacity as owners:
Issue of share capital
Transaction cost
Share issued on exercise of
unlisted options
Movement reserve on the
exercise of options
Share based payment expense
Balance at 31 December 2020
Issued
capital
$
11,855,059
-
-
Shared
based
payment
reserve
$
294,011
-
-
Foreign
currency
translation
reserve
$
45,153
-
(21,272)
Accumulated
losses
$
(7,971,877)
(1,435,225)
-

Non-
controlling
interest
$
(257,978)
(268,649)
5,873
Total equity
$
3,964,368
(1,703,874)
(15,399)
-
-
-
-
-
27,764
(21,272)
(5,276)
-
(1,435,225)
5,276
-
(262,776)
-
-
(1,719,273)
-
27,764
11,855,059 321,775 18,605 (9,401,826) (520,754) 2,272,859
Issued
capital
$
14,562,344
-
-
Shared
based
payment
reserve
$
205,093
-
-
Foreign
currency
translation
reserve
$
(28,056)
-
(176,154)
Accumulated
losses
$
(10,148,419)
(1,672,660)
-

Non-
controlling
interest
$
(683,860)
(270,244)
89,676
Total equity
$
3,907,102
(1,942,904)
(86,478)
-
15,166,300
(876,138)
125,621
63,316
-
-
-
-
-
(63,316)
15,784
(176,154)
-
-
-
-
-
(1,672,660)
-
-
-
-
-
(180,568)
-
-
-
-
-
(2,029,382)
15,166,300
(876,138)
125,621
-
15,784
29,041,443 157,561 (204,210) (11,821,079) (864,428) 16,309,287

The above statement of changes in equity should be read in conjunction with the accompanying notes

8

E2 Metals Limited Statement of cash flows For the half-year ended 31 December 2020

==> picture [87 x 33] intentionally omitted <==

Cash flows from operating activities
Payments to suppliers and employees (inclusive of GST)
Interest received
Interest paid
COVID-19 ATO incentives received
Net cash used in operating activities

Cash flows from investing activities
Payments for property, plant and equipment
Net proceeds from the sales of bonds
Net cash from investing activities

Cash flows from financing activities
Proceeds from issue of shares
Equity raising costs
Repayment of borrowings
Net cash from/(used in) financing activities

Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the financial half-year
Effects of exchange rate changes on cash and cash equivalents
Cash and cash equivalents at the end of the financial half-year
Consolidated
31 December
2020
31 December
2019
$
$
(3,409,014)
(1,580,655)
3,766
12,333
-
(1,744)
29,865
-
(3,375,383)
(1,570,066)
(89,825)
-
1,253,709
-
1,163,884
-
15,291,921
-
(876,138)
-
-
(26,606)
14,415,783
(26,606)
12,204,284
(1,596,672)
3,564,498
3,946,719
(179,655)
1,070
15,589,127
2,351,117
(3,375,383)
(89,825)
1,253,709
1,163,884
15,291,921
(876,138)
-
14,415,783
12,204,284
3,564,498
(179,655)
15,589,127

The above statement of cash flows should be read in conjunction with the accompanying notes

9

E2 Metals Limited Notes to the financial statements 31 December 2020

==> picture [87 x 33] intentionally omitted <==

Note 1. General information

The financial statements cover E2 Metals Limited as a Consolidated entity consisting of E2 Metals Limited and the entities it controlled at the end of, or during, the half-year. The financial statements are presented in Australian dollars, which is E2 Metals Limited's functional and presentation currency.

E2 Metals Limited is a listed public company limited by shares, incorporated and domiciled in Australia.

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

The financial statements were authorised for issue, in accordance with a resolution of directors, on 10 March 2021.

Note 2. Significant accounting policies

These general purpose financial statements for the interim half-year reporting period ended 31 December 2020 have been prepared in accordance with Australian Accounting Standard AASB 134 'Interim Financial Reporting' and the Corporations Act 2001, as appropriate for for-profit oriented entities. Compliance with AASB 134 ensures compliance with International Financial Reporting Standard IAS 34 'Interim Financial Reporting'.

These general purpose financial statements do not include all the notes of the type normally included in annual financial statements. Accordingly, these financial statements are to be read in conjunction with the annual report for the year ended 30 June 2020 and any public announcements made by the Company during the interim reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001.

The principal accounting policies adopted are consistent with those of the previous financial year and corresponding interim reporting period, unless otherwise stated.

New or amended Accounting Standards and Interpretations adopted

The Consolidated entity has adopted all of the new or amended Accounting Standards and Interpretations issued by the Australian Accounting Standards Board ('AASB') that are mandatory for the current reporting period.

Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted.

Note 3. Operating segments

Identification of reportable operating segments

The Consolidated entity is organised into two operating segments: Australia projects and Argentina projects. These operating segments are based on the internal reports that are reviewed and used by the Board of Directors (who are identified as the Chief Operating Decision Makers ('CODM')) in assessing performance and in determining the allocation of resources. There is no aggregation of operating segments.

The CODM reviews financial management accounts on a monthly basis. The accounting policies adopted for internal reporting to the CODM are consistent with those adopted in the financial statements.

The reportable segments are:

Australia Argentina

Intersegment transactions

There were no material intersegment transactions during the reporting period.

There were no material intersegment receivables, payables and loans during the reporting period.

Major customers

The Consolidated entity does not have any customers.

10

E2 Metals Limited Notes to the financial statements 31 December 2020

==> picture [87 x 33] intentionally omitted <==

Note 3. Operating segments (continued)

Consolidated - 31 December 2020
Other income
Administration expenses
Corporate expenses
Employment expenses
Exploration expense
Loss before income tax expense
Income tax expense
Loss after income tax expense
Assets
Unallocated assets:
Cash and cash equivalents
Trade and other receivables
Other current assets
Other non-current assets
Total assets
Liabilities
Unallocated liabilities:
Trade and other payables
Employee benefits
Total liabilities

Consolidated - 31 December 2019
Other income
Administration expenses
Corporate expenses
Employment expenses
Exploration expense
Loss before income tax expense
Income tax expense
Loss after income tax expense
Consolidated - 30 June 2020
Assets
Unallocated assets:
Cash and cash equivalents
Trade and other receivables
Other current assets
Other non-current assets
Total assets
Liabilities
Unallocated liabilities:
Trade and other payables
Employee benefits
Total liabilities
Argentina
$ 1,253,710
-
-
-
(2,381,047)
Australia
$ 33,872
-
-
-
(88,212)
Unallocated
$ -
(338,763)
(268,030)
(154,434)
-
Total
$ 1,287,582
(338,763)
(268,030)
(154,434)
(2,469,259)
(1,127,337) (54,340) (761,227) (1,942,904)
-
Argentina
$ -
-
-
-
(1,294,281)
Australia
$ 12,333
-
-
-
(29,732)
Unallocated
$ -
(89,514)
(172,503)
(130,177)
-
(1,942,904)
15,589,127
672,964
28,695
117,765
16,408,551
78,683
20,581
99,264
Total
$ 12,333
(89,514)
(172,503)
(130,177)
(1,324,013)
(1,294,281) (17,399) (392,194) (1,703,874)
-
(1,703,874)
3,564,498
341,714
43,195
30,000
3,979,407
64,741
7,564
72,305

11

E2 Metals Limited Notes to the financial statements 31 December 2020

==> picture [87 x 33] intentionally omitted <==

Note 4. Investment income

Consolidated Consolidated
31 December
31 December
2020 2019
$ $
Gain from bonds 1,253,710 -

The gain from bonds relates to gain from the sale of Argentine CCL bonds which were acquired for the purpose of selling in the short term. The bonds were acquired in US Dollars and liquidated in Argentine Peso as part of transferring the operating working capital to the Group’s Argentine subsidiary for exploration activities. The bonds were acquired and sold during the half-year ended December 2020. There were no bonds on hand as at 31 December 2020.

Note 5. GST and other receivables


GST and VAT receivable- current
GST and VAT receivable- non-current
Other receivables -current
Consolidated
31 December
2020
30 June 2020
$
$
535,669
313,264
126,338
19,616
10,957
8,834
672,964
314,714
672,964

Non-current GST and VAT receivables represents the amount of VAT as at 31 December 2020 that is reimbursable under the Mining Investment Law in Argentina after a period of up to 15 months from the date that the VAT credit originated through a purchase of a VAT-taxable supply.

Note 6. Trade and other payables

Trade payables
Accruals
Other payables

Note 7. Equity - issued capital

Ordinary shares - fully paid
31 December
2020
Shares
149,658,406
Consolidated
31 December
2020
30 June 2020
$
$
20,969
14,173
9,497
28,199
48,217
22,369
78,683
64,741
Consolidated

30 June 2020
31 December
2020
30 June 2020
Shares
$
$
113,869,786
29,041,443
14,562,344

Note 7. Equity - issued capital

12

E2 Metals Limited Notes to the financial statements 31 December 2020

==> picture [87 x 33] intentionally omitted <==

Note 7. Equity - issued capital (continued)

Movements in ordinary share capital

Details
Date
Balance
1 July 2019
Share placement to sophisticated investors
4 June 2020
Capital raising cost
Balance
1 July 2020
Share placement to sophisticated investors
3 July 2020
Share issued on exercise of unlisted options
6 November 2020
Share issued on exercise of unlisted options
16 November 2020
Share placement to sophisticated investors
26 November 2020
Capital raising cost
Balance
31 December 2020
Shares
Issue price
91,869,786
22,000,000
$0.125
-
$0.000
113,869,786
17,330,400
$0.125
350,000
$0.269
300,000
$0.316
17,808,220
$0.730
-
$0.000
149,658,406
$
11,855,059

2,750,000
(42,715)
14,562,344

2,166,300

94,887

94,049

13,000,000
(876,137)
29,041,443

Ordinary shares

Ordinary shares entitle the holder to participate in dividends and the proceeds on the winding up of the company in proportion to the number of and amounts paid on the shares held. The fully paid ordinary shares have no par value and the company does not have a limited amount of authorised capital.

On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon a poll each share shall have one vote.

Share buy-back

There is no current on-market share buy-back.

Note 8. Contingent liabilities

The group had no material contingent liabilities as at the date of this report (30 June 2020: nil)

Note 9. Events after the reporting period

No matter or circumstance has arisen since 31 December 2020 that has significantly affected, or may significantly affect the Consolidated entity's operations, the results of those operations, or the Consolidated entity's state of affairs in future financial years.

Note 10. Earnings per share

Loss after income tax
Non-controlling interest
Loss after income tax attributable to the owners of E2 Metals Limited

Weighted average number of ordinary shares used in calculating basic earnings per share
Weighted average number of ordinary shares used in calculating diluted earnings per share
Consolidated
31 December
2020
31 December
2019
$
$
(1,942,904)
(1,703,874)
270,244
268,649
Consolidated
31 December
2020
31 December
2019
$
$
(1,942,904)
(1,703,874)
270,244
268,649
(1,672,660) (1,435,225)
Number
134,483,047
Number
91,869,786
134,483,047 91,869,786

13

E2 Metals Limited Notes to the financial statements 31 December 2020

==> picture [87 x 33] intentionally omitted <==

Note 10. Earnings per share (continued)

Cents Cents
Basic earnings/(loss) per share (1.24) (1.56)
Diluted earnings/(loss) per share (1.24) (1.56)

Diluted earnings/(loss) per share

The rights to options held by option holders have not been included in the weighted average number of ordinary shares for the purposes of calculating diluted EPS as they do not meet the requirements for inclusion in AASB 133 “Earnings per Share”. The rights to options are non-dilutive as the consolidated entity has generated a loss for the year.

14

E2 Metals Limited Directors' declaration 31 December 2020

==> picture [87 x 33] intentionally omitted <==

In the directors' opinion:

  • the attached financial statements and notes comply with the Corporations Act 2001, Australian Accounting Standard AASB 134 'Interim Financial Reporting', the Corporations Regulations 2001 and other mandatory professional reporting requirements;

  • the attached financial statements and notes give a true and fair view of the Consolidated entity's financial position as at 31 December 2020 and of its performance for the financial half-year ended on that date; and

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

Signed in accordance with a resolution of directors made pursuant to section 303(5)(a) of the Corporations Act 2001.

On behalf of the directors

==> picture [113 x 23] intentionally omitted <==

_________ Todd Williams Managing Director

10 March 2021

15

Independent auditor’s review report

Report on the Review of the Half-Year Financial Report

Conclusion

We have reviewed the accompanying half-year financial report of E2 Metals Limited (the Company) and the entities it controlled at the half-year’s end or from time to time during the half year (the consolidated entity), which comprises the consolidated statement of financial position as at 31 December 2020, the consolidated statement of profit or loss and other comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the half-year ended on that date, a summary of significant accounting policies and other explanatory information, and the directors’ declaration.

Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the half-year financial report of E2 Metals Limited is not in accordance with the Corporations Act 2001 including:

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

  • b) complying with Australian Accounting Standard 134 Interim Financial Reporting and the Corporations Regulations 2001 .

Basis for Conclusion

We conducted our review in accordance with ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity . Our responsibilities are further described in the Auditor’s Responsibilities for the Review of the Financial Report section of our report. We are independent of the Company in accordance with the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code) that are relevant to our audit of the annual financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.

Responsibility of Management 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 gives a true and fair view and is free from material misstatement, whether due to fraud or error.

Auditor’s Responsibilities for the Review of the Half-Year Financial Report

Our responsibility is to express a conclusion on the half-year financial report based on our review. ASRE 2410 requires us to conclude whether we have become aware of any matter that makes us 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 Company’s financial position as at 31 December 2020 and its performance for the half-year ended on that date, and complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001 .

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.

==> picture [134 x 25] intentionally omitted <==

William Buck Audit (Vic) Pty Ltd ABN: 59 116 151 136

N.S. Benbow Director

Dated this 10[th] day of March, 2021