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VYSARN LIMITED — Interim / Quarterly Report 2017
Mar 15, 2017
66029_rns_2017-03-15_7b01b440-2d48-4dd6-809a-7f1668bf0c7d.pdf
Interim / Quarterly Report
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MHM METALS LIMITED ABN 41 124 212 175
HALF YEAR FINANCIAL REPORT FOR THE SIX MONTHS ENDED 31 DECEMBER 2016
MHM Metals Limited Corporate directory 31 December 2016
Directors Mr Faldi Ismail (Non-Executive Chairman) Mr Bryn Hardcastle (Non-Executive Director) Mr Nicholas Young (Non-Executive Director) Company secretary Mr Justin Mouchacca Registered office Level 4, 100 Albert Road South Melbourne, VIC, 3025 Tel: +61 3 9692 7222 Fax: +61 3 9077 9233 Share register Security Transfer Registrars Pty Ltd 770 Canning Highway Applecross WA 6153 Tel: +61 8 9315 2333 Fax: +61 8 9315 2233 Auditor Grant Thornton Audit Pty Ltd The Rialto Level 30, 525 Collins Street MELBOURNE VIC 3000 Stock exchange listing MHM Metals Limited shares are listed on the Australian Securities Exchange (ASX code: MHM) Website www.mhmmetals.com
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MHM Metals Limited Contents 31 December 2016
| Directors' report | 3 |
|---|---|
| Auditor's independence declaration | 5 |
| Statement of profit or loss and other comprehensive income | 6 |
| Statement of financial position | 8 |
| Statement of changes in equity | 9 |
| Statement of cash flows | 10 |
| Notes to the financial statements | 11 |
| Directors' declaration | 17 |
| Independent auditor's review report to the members of MHM Metals Limited | 18 |
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MHM Metals Limited Directors' report 31 December 2016
The directors present their report, together with the financial statements, on the consolidated entity (referred to hereafter as the 'consolidated entity') consisting of MHM 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 2016.
Directors
The following persons were directors of MHM Metals Limited during the whole of the financial half-year and up to the date of this report, unless otherwise stated:
Mr Faldi Ismail (Non-Executive Chairman) (appointed 20 December 2016) Mr Bryn Hardcastle (Non-Executive Director) (appointed 20 December 2016) Mr Nicholas Young (Non-Executive Director) (appointed 20 December 2016) Mr Paul Harley (Non-Executive Director) (appointed 2 December 2016 resigned 20 December 2016) Mr Francis DeSouza (Non-Executive Director) (appointed 7 December 2016 resigned 20 December 2016) Mr Joseph van den Elsen (Managing Director) (resigned 20 December 2016) Mr Paul Kopejtka (Non-Executive Chairman) (resigned 1 December 2016) Mr Christopher Goodman (Non-Executive Director) (resigned 1 December 2016)
Principal activities
During the financial half-year the principal continuing activities of the consolidated entity consisted of the review of new opportunities which will provide overall increase to shareholder value.
Review of operations
The loss for the consolidated entity after providing for income tax amounted to $831,289 (31 December 2015: profit of $5,234,741).
The majority of the loss for the period has resulted from the sale of the Company's property, plant and equipment held by its wholly owned subsidary, Alreco Pty Ltd, with a loss of $499,999 being recognised in the current half-year period. The expenses relating to Alreco's operations for the period have been recorded as a discontinued operation.
Working capital, being current assets less current liabilities, was $6,659,977 (30 June 2016: $7,316,356). The consolidated entity had negative cash flows from operating activities for the period amounting to $1,305,795 (2015: positive cash flows from operating activities of $3,625,836),
Significant changes in the state of affairs
During the half-year, the consolidated entity acquired an equity interest in KIN Mining N.L (ASX: KIN). The investment in KIN is consistent with MHM’s strategy of identifying opportunities where MHM’s Financial Position and management experience can be applied to create new business opportunities in the resources sector. Following the acquisition of the equity interest and liaison with ASX, the Company’s securities were placed into suspension and will remain in suspension until such time as the Company has identified a suitable new opportunity and has met any necessary requirements under ASX Listing Rule 11.1 that may apply in relation to that opportunity (including re-complying with Chapters 1 and 2 of the ASX Listing Rules, to the extent required).
On 12 October 2016 the Company announced that its wholly subsidiary, Alreco Pty Ltd (Alreco), had entered into a Deed of Settlement and Release (Deed) with Alcoa of Australia Limited (Alcoa) in connection with the lease of the Hays Road property and the associated remediation obligation. The Deed of Settlement and Release was to be effected through payment by Alreco to Alcoa of $1,000,000 and Alcoa’s discharge of its security over a $350,000 bank guarantee and the property at 80 Buckley Grove, Moolap. On 21 October 2016 the Company announced that settlement had been carried out in accordance with the Deed.
On 15 November 2016, the consolidated entity announced that it had entered into a merger term sheet with Alliance Mining Commodities Limited (AMC), a privately owned Bermudan company that owns a 90% interest in the Koumbia bauxite project in Republic of Guinea. On 12 December 2016 the consolidated entity announced that a mutual agreement to terminate the merger term sheet had been agreed with AMC and the proposed transaction was terminated.
On 15 December 2016, Mercantile Investment Company Limited (Mercantile) (ASX: MVT) stated that it intends to make an off-market takeover bid for the shares in MHM.
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MHM Metals Limited Directors' report 31 December 2016
On 23 December 2016, the Company settled the sale of the property, plant and equipment at 80 Buckley Grove, Moolap for $1. The property, plant and equipment at 80 Buckley Grove had been accounted for in the Company’s 2016 financial statements in the amount of $500,000. The settlement of the property at 80 Buckley Grove finalizes the Company’s interests in the Moolap region and in the aluminium recycling industry.
There were no other significant changes in the state of affairs of the consolidated entity during the financial half-year.
Matters subsequent to the end of the financial half-year
On 11 January 2017, the Company announced that it had received a Bidder's Statement from Mercantile OFM Pty Limited (Mercantile OFM), a wholly owned subsidiary of Mercantile Investment Company Limited (ASX: MVT). The offer being made to shareholders was for a cash consideration of $0.04 (4 cents) per share.
On 12 January 2017, the Company announced that it had settled the sale of the Executive 73 Vessel for net consideration of approximately US $380,000 (AUD $506,566).
On 9 February 2017, the Company advised that it has received an intention to make an off-market takeover for all of the ordinary shares in the Company from Cadmon Ventures Pty Ltd. The offer being made to shareholders was for a cash consideration of $0.0435 (4.35 cents) per share.
No other matter or circumstance has arisen since 31 December 2016 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.
Auditor's independence declaration
A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001 is set out on the following page.
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
_________ Faldi Ismail Non-executive Chairman
16 March 2017
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The Rialto, Level 30 525 Collins St Melbourne Victoria 3000
Correspondence to: GPO Box 4736 Melbourne Victoria 3001
T +61 3 8320 2222 F +61 3 8320 2200 E [email protected] W www.grantthornton.com.au
Auditor’s Independence Declaration To The Directors of MHM Metals Limited
In accordance with the requirements of section 307C of the Corporations Act 2001, as lead auditor for the audit of MHM Metals Limited for the half-year ended 31 December 2016, I declare that, to the best of my knowledge and belief, there have been:
-
a no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and
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b no contraventions of any applicable code of professional conduct in relation to the audit.
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GRANT THORNTON AUDIT PTY LTD Chartered Accountants
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Brad Taylor Partner - Audit & Assurance
Melbourne, 16 March 2017
Grant Thornton Audit Pty Ltd ACN 130 913 594
a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389
‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or refers to one or more member firms, as the context requires. Grant Thornton Australia Ltd is a member firm of Grant Thornton International Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one another and are not liable for one another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to Grant Thornton Australia Limited ABN 41 127 556 389 and its Australian subsidiaries and related entities. GTIL is not an Australian related entity to Grant Thornton Australia Limited.
Liability limited by a scheme approved under Professional Standards Legislation.
MHM Metals Limited Statement of profit or loss and other comprehensive income For the half-year ended 31 December 2016
| Note Revenue Income Other income 3 Expenses Administration expenses Corporate expenses Employee benefits expense Impairment of assets Insurance expenses Legal fees Other expenses Profit/(loss) before income tax expense from continuing operations Income tax expense Profit/(loss) after income tax expense from continuing operations Loss after income tax expense from discontinued operations 4 Profit/(loss) after income tax expense for the half-year attributable to the owners of MHM Metals Limited Other comprehensive income Items that may be reclassified subsequently to profit or loss Loss on the revaluation of available-for-sale financial assets, net of tax Foreign currency translation Realised gain on sale of available-for-sale financial assets, net of tax Other comprehensive income for the half-year, net of tax Total comprehensive income for the half-year attributable to the owners of MHM Metals Limited Total comprehensive income for the half-year is attributable to: Continuing operations Discontinued operations |
Consolidated 31 December 2016 31 December 2015 $ $ 40,579 265,109 414,490 5,698,414 (77,006) (41,915) (282,915) (168,861) (133,800) (233,243) (16,324) 311,117 (34,733) (19,694) (139,555) (98,615) (30,997) (60,489) (260,261) 5,651,823 - - (260,261) 5,651,823 (571,028) (417,082) (831,289) 5,234,741 (326,841) - (62,453) - (59,854) - (449,148) - (1,280,437) 5,234,741 (709,409) 5,651,823 (571,028) (417,082) (1,280,437) 5,234,741 |
|---|---|
| (260,261) - |
|
| (260,261) (571,028) |
|
| (831,289) (326,841) (62,453) (59,854) |
|
| (449,148) | |
| (1,280,437) | |
| (709,409) (571,028) |
|
| (1,280,437) |
The above statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes
6
MHM Metals Limited Statement of profit or loss and other comprehensive income For the half-year ended 31 December 2016
| Consolidated | Consolidated | ||
|---|---|---|---|
| 31 December | 31 December | ||
| Note | 2016 | 2015 | |
| $ | $ | ||
| Cents | Cents | ||
| Earnings per share for loss from discontinued operations attributable to the | |||
| owners of MHM Metals Limited | |||
| Basic earnings per share | 15 | (0.42) | (0.31) |
| Diluted earnings per share | 15 | (0.42) | (0.31) |
| Earnings per share for profit/(loss) attributable to the owners of MHM Metals | |||
| Limited | |||
| Basic earnings per share | 15 | (0.61) | 3.95 |
| Diluted earnings per share | 15 | (0.61) | 3.95 |
The above statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes
7
MHM Metals Limited Statement of financial position As at 31 December 2016
| Note Assets Current assets Cash and cash equivalents 5 Trade and other receivables 6 Assets classified as held for sale 7 Available-for-sale financial assets Other 8 Assets of disposal groups classified as held for sale Total current assets Non-current assets Property, plant and equipment 9 Total non-current assets Total assets Liabilities Current liabilities Trade and other payables Provisions 10 Liabilities directly associated with assets of disposal groups classified as held for sale Total current liabilities Total liabilities Net assets Equity Issued capital 11 Reserves 12 Accumulated losses Total equity |
Consolidated 31 December 2016 30 June 2016 $ $ 5,361,060 7,123,253 34,451 40,270 506,566 - 950,796 445,728 45,577 41,728 6,898,450 7,650,979 619 883,137 6,899,069 8,534,116 - 624,058 - 624,058 6,899,069 9,158,174 156,864 178,127 36,531 31,142 193,395 209,269 45,697 1,008,491 239,092 1,217,760 239,092 1,217,760 6,659,977 7,940,414 29,912,298 29,912,298 2,116,483 2,565,631 (25,368,804) (24,537,515) 6,659,977 7,940,414 |
|---|---|
| 6,898,450 619 |
|
| 6,899,069 | |
| - | |
| - | |
| 6,899,069 | |
| 156,864 36,531 |
|
| 193,395 45,697 |
|
| 239,092 | |
| 239,092 | |
| 6,659,977 | |
| 29,912,298 2,116,483 (25,368,804) |
|
| 6,659,977 |
The above statement of financial position should be read in conjunction with the accompanying notes
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MHM Metals Limited Statement of changes in equity For the half-year ended 31 December 2016
| Consolidated Balance at 1 July 2015 Adjustment for correction of error Balance at 1 July 2015 - restated Profit after income tax expense for the half-year Other comprehensive income for the half-year, net of tax Total comprehensive income for the half-year Foreign exchange reserve Transactions with owners in their capacity as owners: Contributions of equity, net of transaction costs Balance at 31 December 2015 Consolidated Balance at 1 July 2016 Loss after income tax expense for the half-year Other comprehensive income for the half-year, net of tax Total comprehensive income for the half-year Balance at 31 December 2016 |
Issued capital $ 29,846,015 - |
Reserves $ 2,328,074 - |
Accumulated losses $ (27,876,086) (840,000) |
Total equity $ 4,298,003 (840,000) 3,458,003 5,234,741 - 5,234,741 57,184 202,671 8,952,599 Total equity $ 7,940,414 (831,289) (449,148) (1,280,437) 6,659,977 |
|---|---|---|---|---|
| 29,846,015 - - |
2,328,074 - - |
(28,716,086) 5,234,741 - |
||
| - - 227,671 |
- 57,184 (25,000) |
5,234,741 - - |
||
| 30,073,686 | 2,360,258 |
(23,481,345) | ||
| Issued capital $ 29,912,298 - - |
Reserves $ 2,565,631 - (449,148) |
Accumulated losses $ (24,537,515) (831,289) - |
||
| - | (449,148) | (831,289) |
||
| 29,912,298 | 2,116,483 |
(25,368,804) |
The above statement of changes in equity should be read in conjunction with the accompanying notes
9
MHM Metals Limited Statement of cash flows For the half-year ended 31 December 2016
| Note Cash flows from operating activities Receipts from customers (inclusive of GST) Payments to suppliers and employees (inclusive of GST) Interest received R&D Tax Offset Received Net cash from/(used in) operating activities Cash flows from investing activities Payments for equity investments Proceeds from sale of equity investments Proceeds from disposal of property, plant and equipment Net cash from/(used in) investing activities Cash flows from financing activities Proceeds from borrowings Net cash from financing activities Net increase/(decrease) in cash and cash equivalents Cash and cash equivalents at the beginning of the financial half-year 5 Cash and cash equivalents at the end of the financial half-year 5 |
Consolidated 31 December 2016 31 December 2015 $ $ 75,000 214,596 (1,733,708) (1,308,506) 73,277 286,417 279,636 4,433,329 (1,305,795) 3,625,836 (1,065,719) - 233,418 - 1 25,456 (832,300) 25,456 - 200,000 - 200,000 (2,138,095) 3,851,292 7,499,774 1,357,966 5,361,679 5,209,258 |
|---|---|
| (1,305,795) | |
| (1,065,719) 233,418 1 |
|
| (832,300) | |
| - | |
| - | |
| (2,138,095) 7,499,774 |
|
| 5,361,679 |
The above statement of cash flows should be read in conjunction with the accompanying notes
10
MHM Metals Limited Notes to the financial statements 31 December 2016
Note 1. Significant accounting policies
These general purpose financial statements for the interim half-year reporting period ended 31 December 2016 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 2016 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 2. Operating segments
Operating segments are presented using the 'management approach', where the information presented is on the same basis as the internal reports provided to the Chief Operating Decision Makers ('CODM'). The CODM is responsible for the allocation of resources to operating segments and assessing their performance.
Note 3. Other income
| Net gain on sale of KIN mining shares R&D tax incentive refunds Sundry income Other income |
Consolidated 31 December 2016 31 December 2015 $ $ 59,854 20,680 279,636 5,677,734 75,000 - 414,490 5,698,414 |
|---|---|
| 414,490 |
Note 4. Discontinued operations
Description
On 20 February 2014, the consolidated entity announced that Alcoa Inc, the Company’s main supplier of feedstock for its salt slag processing business, had announced its intention to permanently close its two rolling mills at Port Henry, Victoria and Yennora, New South Wales by the end of 2014. The Company, through its wholly owned subsidiary, Alreco Pty Ltd, received its last supply of material from Alcoa on 31 March 2015 and since that time has been focused on progressing legacy stockpiles and the remediation of its Moolap plant.
As at 30 September 2015, the consolidated entity ceased all commercial operations at its Moolap plant.
On 23 December 2016, the Company settled the sale of the property, plant and equipment at 80 Buckley Grove, Moolap for $1. The property, plant and equipment at 80 Buckley Grove had been accounted for in the Company’s 2016 financial statements in the amount of $500,000. The sale was effected on a 'walk in, walk out' bases, without representations and warranties on the part of the seller and the buyer assuming the responsibility for all potential liabilities connected to the property, including the legacy stockpiles. The settlement of the property at 80 Buckley Grove finalizes the Company’s interests in the Moolap region and in the aluminium recycling industry.
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MHM Metals Limited Notes to the financial statements 31 December 2016
Note 4. Discontinued operations (continued)
Financial performance information
| Income Production expenses Total revenue Corporate expenses Employee benefit expense Administration expense Depreciation expense Rehabilitation expense Impairment of asset Loss on sale of property, plant and equipment Total expenses Loss before income tax expense Income tax expense Loss after income tax expense from discontinued operations |
31 December 2016 $ 2,175 (14,945) |
31 December 2015 $ 215,225 (419,589) (204,364) (52,036) (61,284) (50,672) (24,714) 670,504 (694,516) - (212,718) (417,082) - (417,082) |
|---|---|---|
| (12,770) | ||
| (38,024) (88) (20,147) - - - (499,999) |
||
| (558,258) | ||
| (571,028) - |
||
| (571,028) |
Cash flow information
| Net cash used in operating activities Net cash from investing activities Net decrease in cash and cash equivalents from discontinued operations |
31 December 2016 $ (1,043,879) 667,977 |
31 December 2015 $ (773,823) 25,456 (748,367) |
|---|---|---|
| (375,902) |
Carrying amounts of assets and liabilities disposed
| Cash and cash equivalents Trade and other receivables Prepayments Property, plant and equipment Total assets Trade and other payables Provisions Other liabilities Total liabilities Net liabilities |
31 December 2016 $ 619 - - - |
30 June 2016 $ 376,521 6,077 540 500,000 883,138 8,167 1,000,000 324 1,008,491 (125,353) |
|---|---|---|
| 619 | ||
| 45,697 - - |
||
| 45,697 | ||
| (45,078) |
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MHM Metals Limited Notes to the financial statements 31 December 2016
Note 5. Current assets - cash and cash equivalents
| Cash at bank Cash on deposit Reconciliation to cash and cash equivalents at the end of the financial year The above figures are reconciled to cash and cash equivalents at the end of the financial year as shown in the statement of cash flows as follows: Balances as above Cash and cash equivalents - classified as held for sale (note 4) Balance as per statement of cash flows Note 6. Current assets - trade and other receivables Interest receivables GST receivables Note 7. Current assets - assets classified as held for sale Assets classified as held for sale Reconciliation Reconciliation of the fair values at the beginning and end of the current and previous financial half-year are set out below: Opening fair value Transfer from property, plant and equipment Closing fair value Refer to Note 9 for additional information on the sale of the Executive 73 Vessel. |
Consolidated 31 December 2016 30 June 2016 $ $ 5,361,060 2,068,204 - 5,055,049 5,361,060 7,123,253 5,361,060 7,123,253 619 376,521 5,361,679 7,499,774 Consolidated 31 December 2016 30 June 2016 $ $ - 27,354 34,451 12,916 34,451 40,270 Consolidated 31 December 2016 30 June 2016 $ $ 506,566 - - - 506,566 - 506,566 - |
|---|---|
| - 506,566 |
|
| 506,566 | |
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MHM Metals Limited Notes to the financial statements 31 December 2016
Note 8. Current assets - other
| Consolidated | Consolidated | |
|---|---|---|
| 31 December | ||
| 2016 | 30 June 2016 | |
| $ | $ | |
| Prepayments | 45,577 | 41,728 |
| Note 9. Non-current assets - property, plant and equipment | ||
| Consolidated | ||
| 31 December | ||
| 2016 | 30 June 2016 | |
| $ | $ | |
| Plant and equipment - at cost | - | 675,386 |
| Less: Accumulated depreciation | - | (51,328) |
| - | 624,058 |
|
| Reconciliations | ||
| Reconciliations of the written down values at the beginning and end of the current financial half-year are set out below: | ||
| Plant & | ||
| Equipment | Total | |
| Consolidated | $ | $ |
| Balance at 1 July 2016 | 624,058 | 624,058 |
| Foreign exchange gain | 7,397 | 7,397 |
| Impairment of assets | (124,889) | (124,889) |
| Transfers out to assets held for sale | (506,566) | (506,566) |
| Balance at 31 December 2016 | - | - |
On 12 January 2017 the consolidated entity announced that it has settled the sale of the Executive 73 Vessel for net consideration of approximately USD $380,000 (AUD $506,566). The carrying amount of the Vessel as at 31 December 2016 has been adjusted to take into consideration any foreign exchange movements and other costs to sell the Vessel.
Note 10. Current liabilities - provisions
| Annual leave Long service leave Employee benefits |
Consolidated 31 December 2016 30 June 2016 $ $ 11,919 6,530 1,614 1,614 22,998 22,998 36,531 31,142 |
|---|---|
| 36,531 |
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MHM Metals Limited Notes to the financial statements 31 December 2016
Note 11. Equity - issued capital
| Ordinary shares - fully paid Options - unlisted |
31 December 2016 Shares 136,228,616 750,000 |
Consolidated 30 June 2016 31 December 2016 Shares $ 136,228,616 29,882,298 2,650,000 30,000 |
Consolidated 30 June 2016 31 December 2016 Shares $ 136,228,616 29,882,298 2,650,000 30,000 |
30 June 2016 $ 29,882,298 30,000 29,912,298 |
|---|---|---|---|---|
| 136,978,616 | 138,878,616 | 29,912,298 |
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
On 17 February 2016, the consolidated entity announced that it will carry out a buy-back facility through which it will offer to acquire the holdings of shareholders who hold less than a marketable parcel of shares in the Company as at 5.00pm on 16 February 2016 for $0.033 (3.3 cents) per share.
Note 12. Equity - reserves
| Available-for-sale reserve Foreign currency reserve Share-based payments reserve |
Consolidated 31 December 2016 30 June 2016 $ $ (273,916) 113,171 87,325 149,386 2,303,074 2,303,074 2,116,483 2,565,631 |
|---|---|
| 2,116,483 |
Note 13. Contingent liabilities
There are no other contingent liabilities as at 31 December 2016.
Note 14. Events after the reporting period
On 11 January 2017, the Company announced that it had received a Bidder's Statement from Mercantile OFM Pty Limited (Mercantile OFM), a wholly owned subsidiary of Mercantile Investment Company Limited (ASX: MVT). The offer being made to shareholders was for a cash consideration of $0.04 (4 cents) per share.
On 12 January 2017, the Company announced that it had settled the sale of the Executive 73 Vessel for net consideration of approximately US $380,000 (AUD $506,566).
On 9 February 2017, the Company advised that it has received an intention to make an off-market takeover for all of the ordinary shares in the Company from Cadmon Ventures Pty Ltd. The offer being made to shareholders was for a cash consideration of $0.0435 (4.35 cents) per share.
No other matter or circumstance has arisen since 31 December 2016 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.
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MHM Metals Limited Notes to the financial statements 31 December 2016
Note 15. Earnings per share
| Earnings per share for profit/(loss) from continuing operations Profit/(loss) after income tax attributable to the owners of MHM Metals Limited Earnings per share for loss from discontinued operations Loss after income tax attributable to the owners of MHM 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 Basic earnings per share Diluted earnings per share Earnings per share for profit/(loss) Profit/(loss) after income tax attributable to the owners of MHM 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 Basic earnings per share Diluted earnings per share |
Consolidated 31 December 2016 31 December 2015 $ $ (260,261) 5,651,823 Consolidated 31 December 2016 31 December 2015 $ $ (571,028) (417,082) Number Number 136,228,616 132,410,196 136,228,616 132,410,196 Cents Cents (0.42) (0.31) (0.42) (0.31) Consolidated 31 December 2016 31 December 2015 $ $ (831,289) 5,234,741 Number Number 136,228,616 132,410,196 136,228,616 132,410,196 Cents Cents (0.61) 3.95 (0.61) 3.95 |
|---|---|
| Number 136,228,616 |
|
| 136,228,616 | |
| Cents (0.61) (0.61) |
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MHM Metals Limited Directors' declaration 31 December 2016
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 2016 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
_________ Faldi Ismail Non-executive Chairman
16 March 2017
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The Rialto, Level 30 525 Collins St Melbourne Victoria 3000
Correspondence to: GPO Box 4736 Melbourne Victoria 3001
T +61 3 8320 2222 F +61 3 8320 2200 E [email protected] W www.grantthornton.com.au
Independent Auditor’s Review Report To The Members of MHM Metals Limited
Report on the Financial Report
We have reviewed the accompanying financial report of MHM Metals Limited (the Company), which comprises the statement of financial position as at 31 December 2016, the statement of profit or loss and other comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, notes comprising a summary of significant accounting policies and other explanatory information and the directors’ declaration of the consolidated entity, comprising both the Company and the entities it controlled at the half-year end or from time to time during the half-year.
Directors’ Responsibility for the Financial Report
The Directors of the Company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 . The Directors’ responsibility also includes such internal control as the Directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express an opinion on the consolidated half-year financial report based on our review. We conducted our review in accordance with the Auditing Standard on Review Engagements ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity, in order to state whether, on the basis of the procedures described, 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 MHM Metals Limited consolidated entity’s financial position as at 31 December 2015 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. As the auditor of MHM Metals Limited, ASRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual financial report.
Grant Thornton Audit Pty Ltd ACN 130 913 594
a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389
‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or refers to one or more member firms, as the context requires. Grant Thornton Australia Ltd is a member firm of Grant Thornton International Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one another and are not liable for one another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to Grant Thornton Australia Limited ABN 41 127 556 389 and its Australian subsidiaries and related entities. GTIL is not an Australian related entity to Grant Thornton Australia Limited.
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A review of a half-year report involves 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 opinion.
Independence
In conducting our audit, we have complied with the independence requirements of the Corporations Act 2001 .
Conclusion
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 MHM Metals Limited is not in accordance with the Corporations Act 2001, including:
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a giving a true and fair view of the consolidated entity’s financial position as at 31 December 2015 and of its performance for the half-year ended on that date; and
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b complying with Accounting Standard AASB 134 Interim Financial Reporting and Corporations Regulations 2001.
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GRANT THORNTON AUDIT PTY LTD Chartered Accountants
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Brad Taylor Partner - Audit & Assurance
Melbourne, 16 March 2016