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ZEOTECH LIMITED — Interim / Quarterly Report 2014
Mar 13, 2014
66115_rns_2014-03-13_4c08f699-9f55-4e6e-94d8-1d47e18171fb.pdf
Interim / Quarterly Report
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LACONIA RESOURCES LIMITED ABN 29 137 984 297
INTERIM FINANCIAL REPORT FOR THE HALF YEAR ENDED 31 DECEMBER 2013
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This interim financial report does not include all the notes of the type normally included in an annual financial report. This report is to be read in conjunction with the Annual Report for the year ended 30 June 2013 and any public announcements made by Laconia Resources Limited during the interim reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001
CONTENTS
CORPORATE DIRECTORY ............................................................................................................. 4 DIRECTORS’ REPORT .................................................................................................................... 5 AUDITOR’S INDEPENDENCE DECLARATION .............................................................................. 8 STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME ......................... 9 STATEMENT OF FINANCIAL POSITION ...................................................................................... 10 STATEMENT OF CHANGES IN EQUITY ...................................................................................... 11 STATEMENT OF CASH FLOWS ................................................................................................... 12 NOTES TO THE FINANCIAL STATEMENTS ................................................................................ 13 DIRECTORS’ DECLARATION ....................................................................................................... 17 INDEPENDENT AUDITOR’S REVIEW REPORT ........................................................................... 18
CORPORATE DIRECTORY
ABN 29 137 984 297
Directors
Matthew Howison (Non-Executive Chairman) Ian Stuart (Managing Director)
Matthew Edmondson (Non-Executive Director)
Company Secretary
Matthew Edmondson
Registered Office
Suite 2, Level 1, 47 Havelock Street West Perth WA 6005 PO Box 1151 West Perth WA 6872
Internet
Email: [email protected] Web: www.laconia.com.au
Principal Place of Business
Peruvian Office
Suite 2, Level 1, 47 Havelock Street West Perth WA 6005 Telephone: +61 8 9486 1599 Facsimile: +61 8 9486 7899
Calle Bolivar 472 Miraflores, Lima 18, PERÚ Telephone: +51 1 446 2505
Solicitors
Peruvian Solicitor
Steinepreis Paganin Level 4, The Read Buildings, 16 Milligan Street Perth WA 6000 Telephone: +61 8 9 321 4000 Facsimile: +61 8 9321 4333
Rodrigo Elias & Medrano Av. San Felipe, Jesus Maria Lima 11,Peru Telephone: +51 1 619 1900 Facsimile: +51 1 619 1919
Share Register
Security Transfer Registrars Pty Ltd 770 Canning Highway APPLECROSS WA 6153
Auditors
Peruvian Auditor
Rothsay Chartered Accountants Level 1, Lincoln House 4 Ventnor Avenue West Perth WA 6005 Telephone: +61 8 9486 7094
Grant Thornton Peru 8th Floor, Towers of San Isidro Av. República de Panamá 3030 Lima 27, Peru Telephone: +51 1 615 6868 Facsimile: +51 1 615 6888
Securities Exchange Listing
Laconia Resources Limited securities are listed on the Australian Securities Exchange (ASX code: LCR, LCROA).
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LACONIA RESOURCES LIMITED 31 DECEMBER 2013 DIRECTORS’ REPORT (continued)
DIRECTORS’ REPORT
Your directors are pleased to present their report on Laconia Resources Limited for the half-year ended 31 December 2013.
DIRECTORS
The names of the directors who held office during or since the end of the half year are:
| Matthew Howison | Non-Executive Director Chairman |
|---|---|
| Ian Stuart | ManagingDirector |
| Matthew Edmondson | Non-Executive Director – appointed 24 January2014 |
| Vince Algar | Non-Executive Director – ceased 28 January2014 |
| Saliba Sassine | Non-Executive Director – ceased 8 November 2013 |
REVIEW OF OPERATIONS
Financial Performance
The Company recorded a loss for the half-year ended 31 December 2013 of $1,382,759 compared to a loss of $2,294,087 for the corresponding period in the prior year.
As at 31 December 2013, the Company had no short or long term borrowings and had $0.4 million cash on hand.
During this period, market conditions have continued to be challenging for listed junior exploration companies.
The management team has closely reviewed and assessed all areas of expenditure and has formulated and implemented strategies to balance the need to reduce and restrict expenditure while simultaneously advancing the Kimsa Orcco Project in Peru.
COMMERCIAL ACTIVITIES
Rights Issue and placement
In July 2013, the Company announced it had closed its pro-rata entitlements offer to shareholders which raised $324,932 through the issue of 32,493,270 ordinary shares, each with one free attaching 6 cent option expiring on 30 September 2018.
In September 2013, the Company announced it had fully placed the shortfall of the pro-rata entitlement issue of 59,091,930 shares, each with one free attaching 6 cent option expiring on 30 September 2018, to raise a further $590,919. The Company also raised a further $45,792 through the placement of 45,792,649 6 cent options expiring on 30 September 2018.
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LACONIA RESOURCES LIMITED 31 DECEMBER 2013 DIRECTORS’ REPORT (continued)
EXPLORATION ACTIVITIES
Kimsa Orcco Project, Peru
(4 Patacancha Permits 100% Laconia, 11 Huaco Cucho permits subject to 80% earn in option1)
Kimsa Orcco Project (Formerly Rasuhuilca and Huaco Cucho Projects)
Field reconnaissance by a Consultant Geologist with significant Porphyry Copper exploration experience has validated the potential for the Northern Kimsa Orcco Prospects to host copper mineralisation. Examination of outcrops has confirmed strong alteration at surface with possible sericite that may indicate the surface expression is proximal to a porphyry stock.
To support planning for the Company’s maiden drill program, further historical data compilation and validation has been completed at the Southern Kimsa Orcco Prospects. The data has further highlighted the significance of copper mineralisation at the project at the Española 1, Fortuna and Rosita prospects, in addition to the well-established presence of high grade gold and silver.
Exploration activities at the Kimsa Orcco Project have also focussed on continuing community consultation to facilitate approval to drill applications. The applications have now been lodged, subsequent to quarter end, with a Declaración de Impacto Ambiental (Environmental Impact Statement) approval received.
Tenement Rationalisation
During the period, Laconia undertook a review of it tenement holdings and as part of a rationalisation program, the Company completed the sale of its Lennons Find Project for Disposal of Lennons Find and for which it received $250,000 in additional to a $100,000 deposit previously received, with additional $150,000 to come in the March quarter 2014.
Also as part of the rationalisation process, a number of tenements were disposed of leaving the Company with two Western Australia based Projects, namely, Goldsworthy and 701 Mile Project.
Goldsworthy
E45/3904 (Laconia 100% Laconia)
Independence Group NL (IGO) is currently managing exploration as part of an earn-in joint venture with Laconia.
701 Mile
(E52/2688 80% Laconia: mineral rights excluding manganese and iron and 70% Laconia: manganese and iron rights)
Minimal work was undertaken during the period which also saw two tenements, namely E52/2232 and E52/2664 surrendered.
1 See ASX release dated 26 March 2013‐ option to earn 80% indirect interest
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LACONIA RESOURCES LIMITED 31 DECEMBER 2013 DIRECTORS’ REPORT (continued)
SUBSEQUENT EVENTS
No matters or circumstances have arisen since the end of the financial year which significantly affected or may significantly affect the operations of the Group, the results of those operations, or the state of affairs in future financial years.
AUDITOR’S INDEPENDENCE DECLARATION
Section 307C of the Corporations Act 2001 requires our auditors, Rothsay Chartered Accountant, to provide the directors of the company with an Independence Declaration in relation to the review of the interim financial report. This Independence Declaration is set out on page 8 and forms part of this directors’ report for the half-year ended 31 December 2013.
This report is signed in accordance with a resolution of the Board of Directors made pursuant to s.306 (3) of the Corporations Act 2001.
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Ian Stuart Managing Director Perth, 14 March 2014
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LACONIA RESOURCES LIMITED
31 DECEMBER 2013
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE HALF-YEAR ENDED 31 DECEMBER 2013
| Note REVENUE 2 EXPENDITURE Administration expenses Depreciation expense Exploration expenses Salaries and employee benefits expense Share-based payments 5 Loss on sale of assets Other expense LOSS BEFORE INCOME TAX Income tax benefit / (expense) TOTAL COMPREHENSIVE LOSS FOR THE PERIOD ATTRIBUTABLE TO MEMBERS OF LACONIA RESOURCES LIMITED Basic and diluted loss per share (cents) |
2013 $ 2012 $ 87,520 202,170 (497,240) (1,138,903) (43,087) (40,792) (346,720) (252,546) (171,967) (152,576) - (1,119,110) (333,666) - (77,599) - |
|---|---|
| (1,470,279) (2,501,757) - 207,670 |
|
| (1,382,759) (2,294,087) |
|
| (0.04) (1.16) |
The above statement of comprehensive income should be read in conjunction with the accompanying notes.
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LACONIA RESOURCES LIMITED
31 DECEMBER 2013
STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2013
| CURRENT ASSETS Cash and cash equivalents Trade and other receivables TOTAL CURRENT ASSETS NON-CURRENT ASSETS Plant and equipment Mining properties Assets held for resale TOTAL NON-CURRENT ASSSETS TOTAL ASSETS CURRENT LIABILITIES Trade and other payables TOTAL CURRENT LIABILITIES TOTAL LIABILITIES NET ASSETS EQUITY Issued capital Reserves Accumulated losses TOTAL EQUITY |
31 December 30 June 2013 $ 2013 $ 413,334 434,092 288,505 89,344 |
|---|---|
| 701,839 523,436 |
|
| 94,574 134,137 4,937,929 5,594,424 - 26,250 |
|
| 5,032,503 5,754,811 |
|
| 5,734,342 6,278,247 |
|
| 205,971 510,445 |
|
| 205,971 510,445 |
|
| 205,971 510,445 |
|
| 5,528,371 5,767,802 |
|
| 15,266,664 13,686,487 1,921,067 2,357,916 (11,659,360) (10,276,601) |
|
| 5,528,371 5,767,802 |
The above statement of financial position should be read in conjunction with the accompanying notes.
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LACONIA RESOURCES LIMITED
31 DECEMBER 2013
STATEMENT OF CHANGES IN EQUITY FOR THE HALF-YEAR ENDED 31 DECEMBER 2013
| BALANCE AT 1 JULY 2012 Loss for the period TOTAL COMPREHENSIVE LOSS TRANSACTIONS WITH OWNERS IN THEIR CAPACITY AS OWNERS Options issued during the period Shares issued during the period BALANCE AT 31 DECEMBER 2012 BALANCE AT 1 JULY 2013 Loss for the period TOTAL COMPREHENSIVE LOSS TRANSACTIONS WITH OWNERS IN THEIR CAPACITY AS OWNERS Options issued during the period Shares issued during the period Convertible note converted to shares Foreign exchange movement BALANCE AT 31 DECEMBER 2013 |
Contributed Equity Convertible Note Share-based Payments Reserve Options Reserves Foreign Exchange Reserves Accumulated Losses Total $ $ $ $ $ $ $ 11,975,022 649,090 223,826 - - (6,256,030) 6,591,908 - - - - - (2,294,087) (2,294,087) |
|---|---|
| - - - - - 2,294,087 2,294,087 - - 1,035,000 450,000 - - 1,485,000 1,779,420 - - - - - 1,779,420 |
|
| 13,754,442 649,090 1,258,826 450,000 - (8,550,117) 7,562,241 |
|
| 13,686,487 649,090 1,258,826 450,000 - (10,276,601) 5,767,802 - - - - - (1,382,759) (1,382,759) |
|
| - - - 45,793 - - 45,793 842,026 - - - - - 842,026 738,151 (649,090) - - - - 89,061 - - - - 166,448 - 166,448 |
|
| 15,266,664 - 1,258,826 495,793 166,448 (11,659,360) 5,528,371 |
The above statement of changes in equity should be read in conjunction with the accompanying notes.
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LACONIA RESOURCES LIMITED
31 DECEMBER 2013
STATEMENT OF CASH FLOWS FOR THE HALF-YEAR ENDED 31 DECEMBER 2013
| CASH FLOWS FROM OPERATING ACTIVITIES Expenditure on mining interests Payments to suppliers and employees Interest received Research and development tax concession received Net cash outflow from operating activities CASH FLOWS FROM INVESTING ACTIVITIES Sale of mining assets Sale of other assets Purchase of mining assets Payment for plant and equipment Net cash outflow from investing activities CASH FLOWS FROM FINANCING ACTIVITIES Issued capital Net cash outflow from investing activities Net (decrease)/increase in cash and cash equivalents Cash and cash equivalents at the beginning of the half-year CASH AND CASH EQUIVALENTS AT THE END OF THE HALF-YEAR |
2013 $ 2012 $ (593,592) (1,590,463) (585,901) (439,127) 2,960 79,970 - 207,670 |
|---|---|
| (1,176,533) (1,741,950) |
|
| 245,230 97,500 26,250 - - (93,509) (3,524) (17,826) |
|
| 267,956 (13,835) |
|
| 887,819 2,145,732 |
|
| 887,819 2,145,732 |
|
| (20,758) 389,947 434,092 926,590 |
|
| 413,334 1,316,537 |
The above statement of cash flows should be read in conjunction with the accompanying notes.
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LACONIA RESOURCES LIMITED
31 DECEMBER 2013
NOTES TO THE FINANCIAL STATEMENTS
NOTE 1: BASIS OF PREPARATION OF THE HALF-YEAR FINANCIAL REPORT
This condensed consolidated interim financial report for the half-year reporting period ended 31 December 2013 has been prepared in accordance with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Act 2001 .
This condensed consolidated interim financial report does not include all the notes of the type normally included in an annual financial report. Accordingly, this report is to be read in conjunction with the annual report for the year ended 30 June 2013 and any public announcements made by Laconia Resources Limited during the interim reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001 .
The accounting policies adopted are consistent with those of the previous financial year and corresponding interim reporting period.
Adoption of new and revised Accounting Standards
In the half-year ended 31 December 2013, the Company has reviewed all of the new and revised Standards and Interpretations issued by the AASB that are relevant to its operations and effective for annual reporting periods beginning on or after 1 July 2013.
It has been determined by the Company that there is no impact, material or otherwise, of the new and revised Standards and Interpretations on its business and, therefore, no change is necessary to Company accounting policies.
The Company has also reviewed all new Standards and Interpretations that have been issued but are not yet effective for the half-year ended 31 December 2013. As a result of this review the Directors have determined that there is no impact, material or otherwise, of the new and revised Standards and Interpretations on its business and, therefore, no change necessary to Company accounting policies.
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LACONIA RESOURCES LIMITED
31 DECEMBER 2013
NOTES TO THE FINANCIAL STATEMENTS (continued)
NOTE 2: REVENUE
| From continuing operations Interest revenue Other revenue Total revenue |
Half-Year Consolidated December 2013 $ December 2012 $ 2,690 105,170 84,830 97,000 |
|---|---|
| 87,520 202,170 |
NOTE 3: SEGMENT INFORMATION
Management has determined the operating segments based on the reports reviewed by the Board of Directors that are used to make strategic decisions. For management purposes, the Group has identified two reportable segments being exploration activities undertaken in Australia and Peru. These segments include the activities associated with the determination and assessment of the existence of commercial economic reserves, from the Group’s mineral assets in these geographic locations.
Primary Reporting – geographical segments
The geographical segments of the consolidated entity are as follows:
Revenue by geographical region
Revenue attributable to the Group disclosed below, based on where the revenue is generated from:
| Australia South America Total revenue Segment results by geographical region Australia South America Net loss before tax |
December 2013 $ December 2012 $ 13,089 136,594 74,431 65,576 87,520 202,170 958,509 2,363,456 424,250 138,301 1,382,759 2,501,757 |
|---|---|
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LACONIA RESOURCES LIMITED
31 DECEMBER 2013
NOTES TO THE FINANCIAL STATEMENTS (continued)
NOTE 3: SEGMENT INFORMATION (continued)
Assets by geographical region
The location of segment assets by geographical location of the assets is disclosed below:
| Australia South America Total assets |
December 2013 $ June 2013 $ 5,462,116 5,966,402 272,226 311,845 |
|---|---|
| 5,734,342 6,278,247 |
Liabilities by geographical region
The location of segment liabilities by geographical location of the assets is disclosed below:
| Australia South America Total liabilities NOTE 4: ISSUED CAPITAL Issues of ordinary shares during the half-year Issued for cash Issued as consideration for corporate advisory fees Convertible note conversion Share issue cost |
December 2013 $ June 2013 $ 114,285 412,454 91,686 97,991 205,971 510,445 December 2013 Shares December 2013 $ June 2013 Shares June 2013 $ 91,585,200 915,852115,028,131 2,308,063 - - 2,102,750 84,110 7,381,506 738,151 - - - (73,826) - (680,708) |
December 2013 $ June 2013 $ 114,285 412,454 91,686 97,991 |
|---|---|---|
| 205,971 510,445 |
||
| 98,966,706 1,580,177117,130,881 1,711,465 |
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LACONIA RESOURCES LIMITED
31 DECEMBER 2013
NOTES TO THE FINANCIAL STATEMENTS (continued)
NOTE 4: EQUITY SECURITIES ISSUED (continued)
| NOTE 4: EQUITY SECURITIES ISSUED (continued) | |
|---|---|
| Movements of options during the half-year Options lapsed during the year Issued, exercisable at 6 cents, expiring 30 September 2018 |
Number of options December 2013 June 2013 - (3,600,000) 186,877,849 - |
| 186,877,849 3,600,000 |
NOTE 5: SHARE BASED PAYMENT
Fair value of options issued
The assessed weighted average fair value at grant date of options granted during the half-year ended 31 December 2012 was 0.03 cents per option. The fair value at grant date is independently determined using a Black-Scholes option pricing model that takes into account the exercise price, the term of the option, the impact of dilution, the share price at grant date and expected price volatility of the underlying share, the expected dividend yield and the risk free interest rate for the term of the option.
The model inputs for options granted during the year ended 31 December 2012 included:
a) 31,250,000 options issued to Directors and Senior Management for no consideration
-
b) 3,250,000 options issued to Employees pursuant to Employee Incentive Option Plan
-
c) exercise price: $0.06
-
d) grant date: 30 November 2012
-
e) expiry date: 30 September 2018
-
f) share price at grant date: $0.03
-
g) expected price volatility of the Company's shares: 239.90%
-
h) expected dividend yield: 0%
-
i) risk-free interest rate: 2.62%
NOTE 6: CONTINGENCIES
There has been no change in contingent liabilities or contingent assets since the last annual reporting date.
NOTE 7: SUBSEQUENT EVENTS
No other matter or circumstance has arisen since 31 December 2013, which has significantly affected, or may significantly affect the operations of the Company, the result of those operations, or the state of affairs of the Company in subsequent financial years.
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LACONIA RESOURCES LIMITED
31 DECEMBER 2013
DIRECTORS’ DECLARATION
In the directors’ opinion:
-
the financial statements and notes set out on pages 9 to 16 are in accordance with the Corporations Act 2001, including:
-
(a) complying with Accounting Standards, the Corporations Regulations 2001 and other mandatory professional reporting requirements; and
-
(b) giving a true and fair view of the company’s financial position as at 31 December 2013 and of its performance for the half-year ended on that date; and
-
there are reasonable grounds to believe that Laconia Resources Limited 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.
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Ian Stuart
Managing Director Perth, 14 March 2014
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