ABN 56 097 904 302
FINANCIAL REPORT FOR THE HALF YEAR ENDED 30 JUNE 2017This 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 31 December 2016 and any public announcements made by Danakali Limited during the interim reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001.
DirectorsSeamus Ian Cornelius (Non-Executive Chairman)
Paul Michael Donaldson (Managing Director) Liam Raymond Cornelius (Non-Executive Director) John Daniel Fitzgerald (Non-Executive Director)
Jing Zhang (Non-Executive Director) Robert Gordon Connochie (Non-Executive Director)
Executive ManagementPaul Michael Donaldson (Managing Director & Chief Executive Officer) Stuart Tarrant (Chief Financial Officer)
Joint Company SecretariesCatherine Grant-Edwards Melissa Chapman
Registered Office & Principal Place of BusinessLevel 1, 234 Churchill Avenue Churchill Court
SUBIACO WA 6008
Telephone: +61 (0)8 6315 1444
Facsimile: +61 (0)8 9467 9119
BankANZ
1275 Hay Street
WEST PERTH WA 6005
Share RegisterComputershare Investor Services Pty Limited Level 11, 172 St Georges Terrace
PERTH WA 6000
Telephone: 1300 850 505 (Inside Australia)
Telephone: +61 (0)3 9415 4000 (Outside Australia)
Facsimile: +61 (0)3 9473 2500 www.computershare.com
AuditorsErnst & Young
11 Mounts Bay Road PERTH WA 6000
Website www.danakali.com.au Stock Exchange Listing
Danakali Limited Shares (Code: DNK) are listed on the Australian Stock Exchange.
American Depository ReceiptsThe Bank of New York Mellon sponsors DNK's Level 1 American Depository Receipts Program (ADR) in the United States of America. DNK's ADRs are traded on the over-the-counter (OTC) securities market in the US under the symbol DNKLY and CUSIP: 23585T101. One ADR represents one ordinary share in DNK.
US OTC Market information is available here: http://www.otcmarkets.com/stock/DNKLY/quote
DNK's ADR information can also be viewed here: http://www.adrbnymellon.com/dr_profile.jsp?cusip=23585T101 ADR Holders seeking information on their shareholding should contact: shrrelations@bnymellon.com OR
LONDON NEW YORK
Mark Lewis Rick Maehr
mark.lewis@bnymellon.com richard.maehr@bnymellon.com Telephone +44 207 163 7407 Telephone +1 212 815 2275
Page | |
Directors' Report | 3 |
Auditor's Independence Declaration | 10 |
Consolidated Statement of Profit or Loss and Other Comprehensive Income | 11 |
Consolidated Statement of Financial Position | 12 |
Consolidated Statement of Changes in Equity | 13 |
Consolidated Statement of Cash Flows | 14 |
Notes to the Condensed Consolidated Financial Statements | 15 |
Directors' Declaration | 23 |
Independent Auditor's Review Report to the Members | 24 |
Your directors submit their report together with the condensed financial statements of the consolidated entity, being Danakali Limited (Danakali or the Company) and its controlled entities (the Group) for the half year ended 30 June 2017.
DIRECTORSThe names of the directors who held office during or since the end of the half year are:
Seamus Ian Cornelius (Non-Executive Chairman)
Paul Michael Donaldson (Managing Director)
Liam Raymond Cornelius (Non-Executive Director)
John Daniel Fitzgerald (Non-Executive Director)
Zhang Jing (Non-Executive Director)
Robert Gordon Connochie (Non-Executive Director) - Appointed 6 February 2017
Anthony William Kiernan (Non-Executive Director) - Resigned 6 February 2017
The Directors held their positions throughout the entire half year period and up to the date of this report unless stated otherwise.
PRINCIPAL ACTIVITIESThe principal activity of the Group during the period was advancing the Colluli Potash Project in Eritrea, East Africa. There was no significant change in the nature of the Group's activities during the six months to 30 June 2017.
REVIEW AND RESULTS OF OPERATIONSThe net loss after tax of the Group for the half-year ended 30 June 2017 amounted to $4,870,508 (30 June 2016:
$3,066,451).
Total consolidated cash on hand at the end of the period was $18,539,087 (31 December 2016: $10,904,760).
CORPORATE Board ChangesMr Robert Connochie was appointed as a non-executive director to the board of Danakali on 6 February 2017. Mr Connochie is a highly experienced potash and mining specialist with over 40 years of industry experience. He brings extensive senior line management experience from the potash industry, including marketing, corporate development, evaluations, financing and acquisitions.
Mr Connochie previously held positions as Chairman of Canpotex (a world leading potash exporter for 40 years) and Chairman of Behre Dolbear Capital, Inc. Further, Mr Connochie was Chairman and CEO of Potash Company of America, CEO of Asia Pacific Potash, Director of Athabasca Potash, Chairman of the Phosphate and Potash Institute, Director of Fertiliser Institute, and Director of the Saskachewan Potash Producers Association.
Mr Anthony Kiernan resigned as a non-executive director of the Company with effect from 6 February 2017.
Chief Financial Officer AppointmentDuring the period, the board announced the appointment of Mr Stuart Tarrant as the Company's new Chief Financial Officer effective 12 June 2017. Mr Tarrant, formerly Head of Finance of Danakali, a fellow of the Association of Chartered Certified Accountants (ACCA) and former accounting executive with both BHP and HWE Mining has extensive experience in the mining industry with core skills in financial modelling, financial systems development, procurement, budgeting, and cost analysis and optimisation. Mr Tarrant has established relationships with Endeavour Financial who are progressing the procurement led funding process for the project financing of the Colluli Suphate of Potash Project, and was responsible for the development and integrity of the Colluli financial model underpinning the prefeasibility and definitive feasibility studies.
Project Manager AppointmentDuring the period, Mr Tony Harrington was appointed as Project Manager for the construction phase of the Colluli Potash Project. Mr. Harrington has over 37 years' experience in the mining industry delivering EPC, lump sum and Engineering, Procurement, Construction Management (EPCM) projects in the capacity of both client representative and service provider over a diverse range of commodities, with a wide range of mineral processing units, across multiple jurisdictions including East Africa, West Africa, Southern Africa, China, Continental Europe, UK and Australia. Mr. Harrington has extensive experience in construction and assembly of surface infrastructure, materials handling systems, flotation circuits, pumping systems, tanks, cyclones, liberation circuits, thickeners and tailings storage facilities. He brings significant experience and an excellent track record in working in remote locations in developing jurisdictions.
PlacementOn 23 May 2017, Danakali issued 19,920,645 shares (Placement Shares) to institutional and sophisticated investors in the United Kingdom and Australia to raise gross proceeds of A$12.35 million at an issue price of $0.62 cents per share (Placement).
The Placement Shares were issued using the Company's 15% capacity pursuant to Listing Rule 7.1.
Danakali Ltd. published this content on 13 September 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 13 September 2017 07:46:01 UTC.
Original documenthttp://www.danakali.com.au/images/stories/annual-reports/2017/financial_report_half_year_30june17.pdf
Public permalinkhttp://www.publicnow.com/view/E4D5BE3647FCA6F50882227D34468220F53E508B