King Island Scheelite Limited
ABN 40 004 681 734
Interim Financial Statements
Six Months Ended 31 December 2016
RESULTS FOR ANNOUNCEMENT TO THE MARKET
Six months interim period ended 31 December
2016 $ | Up / Down | Movement % | |
Revenue from operating activities | - | - | - |
Loss before interest and income tax | 451,534 | Down | 54 |
Net financing loss | 64,365 | Up | 1,480 |
Income tax benefit | - | Down | 100 |
Loss from ordinary activities after tax attributable to members | 515,899 | Down | 47 |
Net loss for the period attributable to members | 515,899 | Down | 47 |
Cents | |||
Loss per share - basic | 0.3 | Down | 50 |
Loss per share - diluted | 0.3 | Down | 50 |
Dividends | Amount per security | Franked amount per security at 30% | |
2017 interim dividend 2016 final dividend paid Record date for determining entitlements to the interim dividend: | - - - | - - - |
Brief explanation of any figures reported above or other items of importance not previously reported to the market:
Refer to the Directors' Report included in the interim financial statements for explanations.
Discussion and Analysis of the results for the six months ended 31 December 2016:
Refer to the Directors' Report included in the interim period financial report for commentary.
Net Tangible Assets per ordinary share (NTA Backing)
1.0 cents 1.0 cents
Current Period
Previous corresponding
period
TABLE OF CONTENTS
RESULTS FOR ANNOUNCEMENT TO THE MARKET 1
DIRECTORS' REPORT 4
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME 6
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 7
CONSOLIDATED STATEMENT OF FINANCIAL POSITION 8
CONSOLIDATED STATEMENT OF CASH FLOWS 9
NOTES TO THE INTERIM FINANCIAL STATEMENTS 10
DIRECTORS' DECLARATION 17
AUDITOR'S INDEPENDENCE DECLARATION 18
INDEPENDENT AUDITOR'S REVIEW REPORT 19
SHAREHOLDER INFORMATION 21
KING ISLAND SCHEELITE LIMITED INTERIM FINANCIAL STATEMENTS DECEMBER 2016 Page 3
DIRECTORS' REPORT
The directors of King Island Scheelite Limited (Company) present their report together with the consolidated financial report for the six months ended 31 December 2016 and the auditor's review report thereon.
DIRECTORS
The directors of the Company at any time during or since the end of the interim period are:
Johann JOOSTE-JACOBS (Executive Chairman) Appointed 30 November 2012 Christopher ELLIS (Executive Director) Appointed 8 November 2012
Allan DAVIES (Non-Executive Director) Appointed 30 September 2013
REVIEW OF OPERATIONS
Key Points
Directors are examining the potential of staging the development of the Dolphin Mine commencing with a lower production profile producing a lower grade concentrate.
The Revised Environmental Assessment Report was submitted to the Environmental Protection Agency (EPA) for review and approval.
Tranche 2 of the Company's unsecured redeemable convertible notes (Convertible Notes) was drawn down during August 2016. In addition, the first tranche has been converted into shares.
$1,707,815 cash on hand as at 31 December 2016 (June 2016 $1,274,849).
Dolphin Project
After several meetings and detailed discussions with King Island Council and the Environment Protection Authority Tasmania (EPA), regarding any amendments required to the Company's environmental approvals, King Island Council advised that the amendments discussed, in relation to the new operating plan, are adequately covered by the conditions contained in the Company's existing planning permit.
Additional studies were undertaken to ensure that the Environment Effects Report submitted to the EPA incorporates the most up-to-date data.
The revised report was submitted to the EPA and it is expected that the amended EPA conditions will be issued early in 2017, reflecting the Company's revised mining operations.
Work continued on the consolidation of recent studies into a Definitive Feasibility Study. This work can only be completed when the final environmental approvals have been obtained.
Tungsten Market
Tungsten prices strengthened slightly during the period with the price of ammonium paratungstate (APT) increasing from USD 16,800 (AUD 23,100) per tonne in December 2015 to USD 19,500 (AUD 26,500) per tonne in December 2016. The current APT price remains at approximately USD19,500 (AUD 26,100) per tonne, with WO3concentrate typicallytrading at a discount of 20% to APT.
Issue of Redeemable Convertible Notes
Tranche 2 of the Convertible Notes was drawn down during August 2016:
o After the Tranche 2 draw down, face values of the Convertible Notes totaled $2,000,000 (Tranche1
$1,000,000 drawn December 2015 Tranche 2 $1,000,000 drawn August 2016).
KING ISLAND SCHEELITE LIMITED INTERIM FINANCIAL STATEMENTS DECEMBER 2016 Page 4
King Island Scheelite Limited published this content on 20 January 2017 and is solely responsible for the information contained herein.
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