Announcement PDF Half Year Report 30 June 2021 CORPORATE DIRECTORY Directors MH Stirzaker PG Bibby SL Fabian JM Madden Non-Executive Chairman (appointed 22 August 2020) Managing Director and Chief Executive Officer Non-Executive Director Executive Director and Company Secretary Company Secretary JM Madden Registered office 211 McIlwraith Street Princes Hill Victoria 3054 Postal address PO Box 337 Carlton North Victoria 3054 Telephone Facsimile 61-3-381 0859 - Website www.akoravy.com Share registry Link Market Services Tower 4, 727 Collins Street Melbourne Victoria Australia 6000 Telephone 1300 554 474 Corporate Advisor Harbury Advisors Pty Ltd Auditor Hall Chadwick WA Audit Pty Ltd 283 Rokeby Road Subiaco WA Australia Solicitors Dentons Australia Level 17, 585 Collins Street Melbourne Victoria Australia CONTENTS Directors’ report 2 Auditor’s independence declaration 8 Consolidated statement of profit or loss and other comprehensive income 9 Consolidated statement of financial position 10 Consolidated statement of changes in equity 11 Consolidated statement of cash flows 12 Notes to the financial statements 13 Directors’ declaration 22 Independent auditor’s review report 23 Page 1 DIRECTORS’ REPORT DIRECTORS’ REPORT The directors present their report, together with the financial statements of AKORA Resources Limited (ACN 139 847 555) (hereafter referred to as the “Company”), for the half-year ended 30 June 2021. Principal Activities The principal activities of the Company during the half-year were exploration for iron ore in Madagascar. There was no significant change in the nature of these activities during the year. Operating Results, Review of Operations for the Year and Significant Changes in State of Affairs The net loss after tax attributable to shareholders of AKORA Resources Limited of $546,434 the half-year ended 30 June 2021 (the net loss after tax for the previous half-year was A$211,058). No significant changes in the Company’s state of affairs occurred during the half-year. Review of Activities During the half-year, the Company completed the analysis of the successful 2020 exploratory drilling programme (see ASX Announcement, dated 17 December 2020) and then commenced the significant 4,000-metre 2021 drilling campaign designed to define a JORC compliant resource at our flagship Bekisopa project (see ASX Announcement, dated 31 May 2021). COVID-19 Precautions AKORA has been proactively managing the potential impact of COVID-19. With all employees and contractors required to test negative COVID before being allowed to travel to site and therefore, limiting risk to the community and operations. Activities and movements have been minimised to what is deemed essential, with increased hygiene practices and first aid at site. 2020 Drilling Programme Evaluation The 2020 drilling programme of 12 diamond holes for a total of 1,095.5 metres was extremely successful in confirming both iron mineralisation along the 6-kilometre strike and at depths in excess of 100 metres on the main Bekisopa tenement. PR 10430. These encouraging drilling results demonstrated that the iron mineralisation is not just associated with the high-grade outcrop it confirmed extension at depth beneath the outcropping iron mineralisation, confirming the comprehensive 2019 geological and magnetic survey work, and gives optimism for an extensive JORC resource. Drill core was prepared at the mineral preparation laboratory in Antananarivo, then 760 assay pulps were sent to the ALS Dublin laboratory for chemical analysis and 1,069 coarse crushed samples were sent to the ALS Perth – Iron Ore Technical Centre for processing evaluations. In summary, the assay results highlighted that the iron mineralisation continued at depth, beyond the typically 100m drilled, with combined mineralisation widths of between 50 metres and 150 metres and confirmed along the 4kilometre strike drilled to date, see Figure 1. Page 2 DIRECTORS’ REPORT Figure 1 Cross section 2020 drill holes BEKD09, 10 and 11 Cross section 2020 drill holes BEKD09, 10 and 11 shows near surface iron levels of 61.3% and 62.4% with the iron mineralisation outcropping and at least 45 metres true thickness and increasing in thickness to the west and a mineralised zone width of some 200 metres. The assay and process evaluation results were report to the ASX (see Announcements, dated 13 April 2021 and 27 April 2021). The drilling has identified that the iron mineralisation comprises what appears to be three distinct types of iron mineralisation; massive, coarse disseminated and fine disseminated, (see ASX Announcement, dated 25 June 2021). Process trials on 2mm coarse crushed drill core, using wet Low Intensity Magnetic Separation, showed conclusively that composites with massive and coarse disseminated iron mineralisation deliver on average a 62.8% iron product grade, better than benchmark grade, with low silica, alumina and phosphorus. These first pass and unoptimized LIMS trials achieved average recoveries of 89% iron, from head grades of 35.2%-61.8%, with the maximum product grade result of 68.3% Fe for massive and coarse mineralisation at a 2mm coarse crush, refer Figure 2. (a) (b) Figure 2 Page 3 DIRECTORS’ REPORT (a) Product from process trial BEKMET03, a composite of drill core from 2020 drill holes 1, 6 and 8 with a product grade of 68.3% iron and mass yield 80%. (b) Product from process trial BEKMET04, a composite of weathered mineralisation from drill core from 2020 drill holes 9,10 and 11 with a product grade 66.9% iron and mass yield of 75%. The near surface iron mineralisation is generally weathered therefore a higher iron grade and this massive iron mineralisation achieved an average 65.5% iron product grade at a 2mm coarse crush, this product would be classified as high-grade iron ore fines. Crushing trials results The Company continued to receive pleasing results from its crushing trials on 2020 drill cores taken from the Bekisopa project (see ASX announcement, dated 15 July 2021). These processing trials continue to show excellent iron ore product grades of 62% iron at a crush size of 3mm and 64% iron at a crush size of 2 mm from massive and coarse disseminated iron mineralization types. As expected, the iron grade increases proportionally with finer crush sizes while the silica, alumina, phosphorus and sulphur levels decrease substantially. (a) (b) (c) Figure 3 Crushing trial products on weathered composite BEKMET22 product grades at (a) 3mm, (b) 2mm and (c) 1mm crush sizes. These produced product grades of (a) 61%, (b) 63% and (c) 64% Fe, respectively. The 2mm crush size achieving an above benchmark grade of 63% Fe. Analysis of the product grades achieved from all processing trials to date (see ASX Announcements, dated 13 April 2021, 27 April 2021 and 25 June 2021) shows the iron mineralization along the Bekisopa strike length can deliver high-grade iron products. The excellent product grades observed from along the strike and from the northern and southern zones, where the 2021 drill grids are planned, ranged from 60.7% to 68.3%Fe, averaging 65.2%Fe. Bekisopa product grades appear excellent when compared to globally traded iron ore products regarding high iron content and low impurity levels. These trials confirm that a 2mm crush delivers quality high-grade iron ore fines products, resulting in the Company deciding for the JORC resource estimation to conduct product trials on drill core samples from the 2021 drilling campaign at 2mm and wLIMS (wet low intensity magnetic separation). This series of crushing trials confirms the favorable upgrading characteristics of the iron mineralization at Bekisopa in achieving high-grade clean iron ore fines products. Commencement of 4,000-metre diamond drilling campaign In June, the Company commenced its 4,000-metre drilling campaign at its flagship Bekisopa iron ore project after mobilizing drilling equipment and support in late May, see Figure 4. The campaign aims to deliver a JORC compliant initial resource by year-end (see ASX announcement, dated 31 May 2021). The Company will undertake this drilling programme at Bekisopa tenements PRE 3757 and PR 10430. During camp construction, a contractor received lacerations, first aid managed the injury, and the contractor will return to his employment. Establishing the camp and drilling has commenced well considering restrictions imposed due to COVID. The campaign’s timeframe assumes the Company can complete all necessary work activities (drilling, assaying, metallurgical test work and resource estimation) without being impacted by operation issues, Covid-19 in Madagascar. or limited international transport options to get samples for analysis to accredited Page 4 DIRECTORS’ REPORT ALS laboratories. The various operational and logistical lessons learnt from the successful 2020 Bekisopa drilling programme will assist in managing the necessary steps to complete this drilling programme in as timely a manner as practical. Figure 4 Bekisopa exploration camp site and geologists drill core preparation and evaluation areas. The 2021 drill plan builds on results previously reported for the Bekisopa iron ore project, with the plan to complete 4,000 metres of diamond drill holes focusing on areas at the northern and southern limits of the main 6-kilometre strike. The proposed drilling program is set out in Figure 5. Tenement 3757 2021 Tenement 10430 2021 Figure 5 Bekisopa Proposed 2021 Drilling Plan Page 5 DIRECTORS’ REPORT In the north, across tenements PRE 3757 and PR 10430, drilling is targeting a zone of high magnetic intensity and the encouraging drill intercept in 2020 drill hole BEKD01, at 200m line spacing to a depth of around 250 metres below surface. In the south (tenement PR 10430), where continuous iron mineralization appears to be dipping more shallowly, 200m line spaced drilling will target shallower mineralization such as that intersected in 2020 drill holes BEKD09, 10 and 11, to a depth of about 150 metres below surface. AKORA selected these drill grids to confirm the continuity of the known iron mineralization in these two zones, within the selected grid areas, and predominately to confirm the known mineralization to the west and at depth. These two drilling grids will only confirm the extent of the iron mineralization along some 30% of the 6 km strike. Therefore, depending on these drill results, the potential for a larger iron resource after further drilling is considerable. The Company is pleased to report that there were no environment, social or governance issues in the in Madagascar during the half-year. As stated above, there was one injury to a contractor during construction of the Bekisopa camp site. The Company continued to build relationships with representatives of the Mining Ministry, the BCMM and with local regional and community government officials and leaders in the lead up to drilling activities at Bekisopa. ASX Listing Rule 4.10.19 In accordance with Listing Rule 4.10.19, the board of directors wish to confirm that the Group has been utilising the cash and assets in a form readily convertible to cash that it held at the time of its admission to the Official List of ASX on 15 December 2020 and since its admission to the end of the reporting period (being 30 June 2021) in a way that is consistent with its business objectives. Dividends No dividends were declared and paid during the half-year. Options At as the date of this report, the unissued ordinary shares of the Company under unlisted options are as follows: Grant date Expiry date 7 December 2020 7 December 2020 7 December 2022 (IPO Options) 7 December 2022 (Escrow Options) Exercise Price Option Number $0.3000 $0.3000 8,592,266 2,244,750 10,837,016 Under the terms and conditions of the IPO the Company raised $5,000,000 with the issue of 20,000,000 shares at 25 cents per share. The Company also issued subscribers with a free-attaching unlisted option over ordinary shares with the options terms being one option for every two shares subscribed at an exercise price of 30 cents per option and with an expiry date of 2 years from the date of issue. The Company granted Harbury Advisors Pty Ltd with 2,244,750 options over ordinary shares pursuant to its Letter of Engagement on the same terms and conditions as the IPO options. The options over ordinary shares issued to Harbury are subject have been escrowed by the ASX for a period of two years. Performance rights At as the date of this report, the unissued ordinary shares of the Company under performance rights are as follows: Page 6 DIRECTORS’ REPORT Award date Vest date 13 April 2021 22 August 2022 Accounting Price Rights Number $0.3800 400,000 Shareholders approved the award of 400,000 performance rights convertible into 400,000 fully paid ordinary shares for zero consideration to Mr MH Stirzaker on 13 April 2021. The Company has applied AASB 2 Share-based payments to value the award of performance rights. Events After Balance Date The Company continues to conduct its 2021 drilling programme at its Bekisopa iron ore project. The work programme is proceeding according to schedule. Environmental Issues The Company's projects are subject to the laws and regulations regarding environmental matters in Madagascar. Many of the activities and operations of the Company cannot be carried out without prior approval from and compliance with all relevant authorities. The company conducts its activities in an environmentally responsible manner and in accordance with all applicable laws. However, the company could be subject to liability due to risks inherent to its activities, such as accidental spills, leakages or other unforeseen circumstances. Information on Directors The following persons were the directors in office as at the date of this report: MH Stirzaker (Non-executive Chairman), appointed 22 August 2020 PG Bibby (Managing Director), appointed 9 July 2015 SL Fabian (Non-executive Director), appointed 7 January 2017 JM Madden (Executive Director and Company Secretary), appointed 6 October 2009 Proceedings on Behalf of Company The Company has no outstanding or pending litigation whether brought by the Company or brought against the Company by a third party. Non-Audit Services There were no non-audit services provided by the Company’s external auditor. 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 page 8. This report of the directors is signed in accordance with a resolution of the Board of Directors. MH Stirzaker Chairman Dated this 5 August 2021 Page 7 To the Board of Directors Auditor’s Independence Declaration under Section 307C of the Corporations Act 2001 As lead audit partner for the review of the financial statements of AKORA Resources Limited for the half year ended 30 June 2021, I declare that to the best of my knowledge and belief, there have been no contraventions of: • the auditor independence requirements of the Corporations Act 2001 in relation to the review; and • any applicable code of professional conduct in relation to the review. Yours faithfully, HALL CHADWICK Chartered Accountants Dated at Perth this 5th day of August 2021 DOUG BELL CA Partner CONSOLIDATED STATEMENT OF PROFIT OR LOSS & OTHER COMPREHENSIVE INCOME Half-Year Note 38 45 (58,849) (146,398) (2,358) (273,731) (25,824) (32,885) (2,430) (158,839) 45,086 (34,000) (19,634) (31,754) (18,449) (2,303) (4,082) (546,472) 50,190 (2,120) (69,211) 6,241 (8,695) (2,984) (246,557) (546,434) (246,512) - - (546,434) (246,512) (546,434) (546,434) (35,454) (211,058) (246,512) (351,470) (351,470) 22,425 (60,455) (38,030) (897,904) (897,904) (13,029) (271,513) (284,542) (0.900) (0.900) (0.690) (0.690) Total revenue and other income Expenditure Administration costs Contractors and consultants Depreciation Employee costs Exchange fluctuation Cash balances Cline outstanding obligations Listing costs Provisions Secretarial costs Share-based payments Travel Other Total expenditure Profit/(loss) before tax for the half-year Income tax (expense)/benefit Net profit/(loss) after tax for the half-year 30 June 2020 $ 30 June 2021 $ Net profit/(loss) for the half-year attributable to: Non-controlling interests Owners of AKORA Resources Limited Items that have been or may be subsequently reclassified to profit or loss Translation reserve Non-controlling interests Owners of AKORA Resources Limited Total comprehensive income for the year Total comprehensive income/(loss) for the year attributable to: Non-controlling interests Owners of AKORA Resources Limited Loss per share Basic earnings per share/cents Diluted earnings per share/cents 3 The accompanying notes form part of these financial statements Page 9 CONSOLIDATED STATEMENT OF FINANCIAL POSITION Note 30 June 2021 $ 31 December 2020 $ Assets Current assets Cash and cash equivalents Receivables Other Total current assets 5 3,704,972 17,129 2,369 3,724,470 4,769,912 31,525 2,326 4,803,763 6 4,288,367 7,889 4,296,256 8,020,726 3,770,077 10,192 3,780,269 8,584,032 Current liabilities Payables Provisions Total current liabilities 262,554 34,603 297,157 256,879 14,749 271,628 Total liabilities 297,157 271,628 7,723,569 8,312,404 24,762,863 (301,884) (16,737,410) 7,723,569 24,467,443 4,800 31,137 (16,190,976) 8,312,404 Non-current assets Exploration and evaluation Property plant and equipment Total non-current assets Total assets Liabilities Net assets Equity Contributed equity Other contributed equity Reserves Accumulated losses Total equity 7 The accompanying notes form part of these financial statements Page 10 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY Share Capital Other Contributed Equity Translation Reserve Share-based Payments Other Reserves $ $ $ $ $ 18,832,748 221,893 (161,038) - - (14,734,436) 4,159,167 134,818 4,293,985 636,600 636,600 - - (60,455) (60,455) - - (211,058) (211,058) 636,600 636,600 (211,058) (60,455) (271,513) (35,454) 22,425 (13,029) 636,600 636,600 (246,512) (38,030) 284,542 - - - - - - - - - As at 30 June 2020 19,469,348 221,893 (221,493) - - (14,945,494) 4,524,254 121,789 4,646,043 As at 31 December 2020 Transactions with owners in their capacity as owners of the Company Share issues Equity raising costs Other contributed equity Exercise of options over ordinary shares Share-based payments 24,467,443 4,800 (263,684) 268,111 26,710 (16,190,976) 8,312,404 - 8,312,404 4,800 290,620 295,420 - (4,800) (4,800) - (351,470) (351,470) 18,449 18,449 - - (546,434) (546,434) 290,620 18,449 309,069 (546,434) (351,470) (897,904) - 290,620 18,449 309,069 (546,434) (351,470) (897,904) - - - - - - - - - 24,762,863 - (615,154) 286,560 26,710 (16,737,410) 7,723,569 - 7,723,569 As at 31 December 2019 Transactions with owners in their capacity as owners of the Company Share issues Equity raising costs Share-based payments Net loss for the period Other comprehensive income Total comprehensive income Newly consolidated entities Income and expense for the period recognised directly in equity Net loss for the period Other comprehensive income Total comprehensive income Income and expense for the period recognised directly in equity As at 30 June 2021 Accumulated Attributable to Equity Losses Shareholders Attributable to of AKORA Non-controlling Interests $ $ $ The accompanying notes form part of these financial statements Page 11 Equity $ CONSOLIDATED STATEMENT OF CASH FLOWS Half-Year Note 30 June 2021 $ 30 June 2020 $ Cash flows from/(used) in operating activities Payments to employees and suppliers Interest received Net cash flows from/(used) in operating activities (700,361) 38 (700,323) (282,240) 45 (282,195) Cash flows from/(used) in investing activities Exploration and evaluation expenditure Property plant and equipment Net cash flows from/(used) in investing activities (700,323) (700,323) (6,500) (2,482) (8,982) 290,620 290,620 - (1,110,026) (291,177) 4,769,912 45,086 2,091,819 50,190 3,704,972 1,850,832 Cash flows from financing activities Exercise of options over ordinary shares Net cash flows Cash and cash equivalents as at the start of the financial period Exchange fluctuation Cash and cash equivalents as at the end of the financial period 5 The accompanying notes form part of these financial statements Page 12 NOTES TO THE FINANCIAL STATEMENTS Note 1 Corporate information The Financial Statements of AKORA Resources Limited (hereafter referred to as the “parent entity”) and its controlled entities comprising Malagasy Holdings (Tratramarina Pty Ltd and its controlled entity Universal Exploration Madagascar sarl) and Malagasy Holdings (Bekisopa) Pty Ltd and its controlled entity Iron Ore Corporation of Madagascar sarl) for the half-year ended 30 June 2021. The Financial Statements were authorised for issue in accordance with a resolution of the Board of Directors on 5 August 2021. The parent entity is as at the date of this Half Year Report a listed public entity limited by shares and incorporated in Australia. The principal activities of the parent entity are exploration for ferrous metals. Note 2(a) Basis of preparation and accounting policies Preparation The condensed financial statements have been prepared on a historical cost basis. Cost is based on the fair value of the consideration given in exchange for assets. The Group is domiciled in Australia and all amounts are presented in Australian dollars, unless otherwise noted. The financial statements have been prepared on a going concern basis. The accounting policies and methods of computation adopted in the preparation of the half-year financial report are consistent with those adopted and disclosed in the Company’s 2020 annual financial report for the financial year ended 31 December 2020, except for the Standards and Interpretations described below. These accounting policies are consistent with Australian Accounting Standard and with International Financial Reporting Standards. Statement of compliance The half-year financial statements are general purpose financial statements prepared in accordance with the requirements of the Corporations Act 2001, applicable accounting standards including AASB 134 ‘Interim Financial Reporting’, Accounting Interpretations and other authoritative pronouncements of the Australian Accounting Standards Board (‘AASB’). Compliance with AASB 134 ensures compliance with IAS 34 ‘Interim Financial Reporting’. The interim financial report was issued on 5 August 2021 by the directors of the Company. The half-year report does not include full disclosures of the type normally included in an annual financial report. Therefore, it cannot be expected to provide as full an understanding of the financial performance, financial position and cash flows of the Company as in the full financial report. It is recommended that this half-year financial report be read in conjunction with the annual financial report for the year ended 31 December 2020 and any public announcements made by Akora Resources Limited during the half-year. Going concern The Group recorded a net loss of $546,434 (2020: net loss of $246,512) and incurred cash outflows from operating and investing activities of $1,400,646 for the half-year ended 30 June 2021 (2020: $291,177). As at 30 June 2021, the Group had working capital of $3,427,313 (31 December 2020: $4,532,135). The Group is committed to conducting a Phase II drilling campaign at its Bekisopa project on the basis set out in its prospectus, dated 12 November 2020. Expenditure on exploration is inclusive of, but not limited to, those amounts identified in Note 6. In addition, the Group will incur corporate Page 13 NOTES TO THE FINANCIAL STATEMENTS costs associated with its on-going obligations as a listed entity on the ASX and its contractual obligations to executives. As at balance date, 30 June 2021, the Group has sufficient funds to implement its proposed plans and extinguish obligations as and when required for the next 12-months. Critical accounting estimates The preparation of the financial report requires the use of certain critical accounting estimates. It also requires management to exercise judgement in the process of applying the group’s accounting policies. The areas involving a higher degree of judgement or complexity or areas where assumptions and estimates are significant to the financial report are disclosed in this Note 2(a). Note 2(b) Principles of consolidation The consolidated financial statements comprise the financial statements of AKORA Resources Limited and its controlled entities as at and for the period ended 30 June each year (the Group). Controlled entities are those entities over which the Group has the power to govern the financial and operating policies to obtain benefits from their activities. The existence and effect of potential voting rights that are currently exercisable or convertible are considered when assessing whether a group controls another entity. The financial statements of the controlled entities are prepared for the same reporting period as the parent entity, using consistent accounting policies, in preparing and consolidated financial statements, all inter-parent entity balances, transactions, unrealised gains and losses resulting from the intra-group transactions have been eliminated in full. Controlled entities are fully consolidated from the date on which control is obtained by the Group and cease to be consolidated from the date on which control is transferred out of the Group. Investments in controlled entities by AKORA Resources Limited are accounted for at cost in the separate financial statements of the parent entity less any impairment charges. The acquisition of controlled entities is accounted for using the acquisition method of accounting. The acquisition method of accounting involves recognising at acquisition date, separately from goodwill, the identifiable assets acquired, the liabilities assumed and any non-controlling interest in the entity acquired. The identifiable assets acquired, and the liabilities assumed are measured at their acquisition date fair values. The difference between the identifiable assets acquired less the liabilities assumed and the fair value of the consideration is goodwill or discount on acquisition. After initial recognition, goodwill is measured at cost less any accumulated impairment losses. For purposes of impairment testing, goodwill acquired in a business combination is, from the acquisition date, allocated to each of the Group’s cash-generating units that are expected to benefit from the combination, irrespective of whether other assets or liabilities of the acquired entity are assigned to those units. Where goodwill forms part of a cash-generating unit and part of the operation within that unit is disposed of, the goodwill associated with the operation disposed of is included in the carrying amount of the operation when determining the gain or loss on disposal of the operation. Goodwill disposed of in this circumstance is measures based on the relative values of the operation disposed of and the portion of the cash-generating unit retained. Page 14 NOTES TO THE FINANCIAL STATEMENTS Note 3 Loss per share 30 Jun 2021 $ Loss from continuing operations for the year Weighted average number of ordinary shares outstanding during the year used in calculation of basic EPS Basic and diluted loss per share (cents per share) Note 4 30 Jun 2020 $ (546,434) (246,512) 60,735,595 35,945,273 (0.900) (0.690) Segment reporting The Group operates solely in the mining exploration industry. The Group determines operating segments by reference to internal reports that are reviewed and used by the executive management team, being the chief operating decision makers (CODMs) in assessing performance and determining the allocation of resources. Two CODMs have been identified – Australia and Madagascar. Page 15 NOTES TO THE FINANCIAL STATEMENTS For the half-year ended 30 June 2021 Australia Madagascar Total $ $ $ Segment revenue Segment result 38 - 38 (540,918) (28,071) (568,989) Amounts not included in segment results but reviewed by the boards: Expenses not directly allocable to identifiable segments Exchange fluctuation Share-based payments Other Loss after income tax 45,086 (18,449) (4,082) (546,434) As at 30 June 2021 Segment assets 3,686,993 4,333,733 8,020,726 Segment liabilities 100,943 196,214 297,157 - 518,292 518,292 518,292 518,292 Segment asset increases for the period: Capital expenditure Impairment of exploration assets For the half-year ended 30 June 2020 Segment revenue Segment result Australia Madagascar Total $ $ $ 45 - 45 (293,718) - (293,718) Amounts not included in segment results but reviewed by the boards: Expenses not directly allocable to identifiable segments Exchange fluctuation Share-based payments Other Loss after income tax As at 31 December 2020 Segment assets Segment liabilities Segment asset increases for the period: Capital expenditure Impairment of exploration assets 50,190 (2,984) (246,512) 4,716,039 3,867,993 8,584,032 195,737 75,891 271,628 - 636,948 636,948 636,948 636,948 Page 16 NOTES TO THE FINANCIAL STATEMENTS Note 5 Cash and cash equivalents 30 June 2021 $ Cash in hand Cash at bank Short-term deposits Note 6 31 December 2020 $ 36 2,364,922 1,340,014 3,704,972 35 4,758,968 10,909 4,769,912 30 June 2021 $ 31 December 2020 $ Exploration and evaluation At start of financial year Additions Exchange fluctuation At end of financial year 3,770,077 869,640 (351,350) 4,288,367 3,133,129 728,906 (91,958) 3,770,077 1,421,213 2,209,397 657,757 4,288,367 1,42