(Formerly MRL Corporation Limited)
ACN 007 870 760
Warwick Grigor (Chairman)
Craig McGuckin (Managing Director)
Peter R. Youd (Executive Director)
Denis Geldard (Non-Executive Director)
Chris Banasik (Non-Executive Director)
Company SecretaryPeter R. Youd
Suite 3
9 Hampden Road
Nedlands WA 6009
Telephone: +61 1300 660 448
Facsimile: +61 1300 855 044
Email: info@firstgraphite.com.au Website: www.firstgraphite.com.au
The Company is listed on the Australian Securities Exchange Limited under the trading codes FGR, FGROA and FGROB
Automic Registry Services Level 1, 7 Ventnor Avenue West Perth W.A. 6005
Telephone: +61 8 9324 2099
Facsimile: +61 8 9321 2337
BDO Audit (WA) Pty Ltd 38 Station Street
Subiaco WA 6008
The Read Buildings 16 Milligan Street
Perth WA 6000
Varners
Level 14, West Tower World Trade Centre Echelon Square Colombo 01
Sri Lanka
Westpac Banking Corporation Level 6
109 St Georges Terrace Perth WA 6000
Contents
Corporate Directory 2
Directors' Report 4
Auditors Independence Declaration 5
Consolidated Statement of Profit or Loss and Other Comprehensive Income 6
Consolidated Statement of Financial Position 7
Consolidated Statement of Changes in Equity 8
Consolidated Statement of Cash Flows 9
Notes to the Consolidated Financial Statements 10
Basis of Preparation of half-year financial statements 10
Accounting policies 10
Segment information. 11
Revenue and other income 12
Other Current Assets 12
Exploration and evaluation expenditure. 12
Issued Capital 13
Dividends 14
Subsequent events after Reporting Date 14
Capital Commitments 14
Contingent Liabilities and Contingent Assets 14
Fair Value measurement of financial instruments 14
Share based payments 15
Directors Declaration 16
Independent Auditors Report 17
Additional Securities Information 19
Additional Securities Information 20
Your Directors present their report on the consolidated entity (referred to hereafter as the "Group") consisting of First Graphite Limited and the entities it controlled at the end of, or during, the half-year ended 31 December 2015.
The following persons were Directors of First Graphite Limited during the half-year and up to the date of this report:
Warwick Grigor (appointed 4 December 2015)
Craig Robert McGuckin
Peter Richard Youd
Denis Geldard
Chris Banasik
Peter Hepburn-Brown (resigned 20 November 2015)
Net operating loss after tax for the half-year ended 31 December 2015 was $2,520,265 (2014: $2,065,621), of which $443,109 (2014: 769,991) were non-cash expenses.
Review of Operations and Changes in State of AffairsThe key areas of activity during the half were:
Commencement of an extensive research and development program at the University of Adelaide on commercial graphene production.
Continued development of mine projects at Pandeniya and Aluketiya
Further exploration drilling at the Company's projects
A copy of the auditor's independence declaration as required under Section 307C of the Corporations Act 2001 is set out on page 5.
Signed in accordance with a resolution of Directors and on behalf of the Directors by:
Tel: +61 8 6382 4600
Fax: +61 8 6382 4601
www.bdo.com.au
38 Station Street
Subiaco, WA 6008
PO Box 700 West Perth WA 6872 Australia
DECLARATION OF INDEPENDENCE BY PHILLIP MURDOCH TO THE DIRECTORS OF FIRST GRAPHITE LIMITED
As lead auditor for the review of First Graphite Limited for the half-year ended 31 December 2015, 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
No contraventions of any applicable code of professional conduct in relation to the review.
This declaration is in respect of First Graphite limited and the entities it controlled during the period.
Phillip Murdoch
Director
BDO Audit (WA) Pty Ltd
Perth, 11 March 2016
BDO Audit (WA) Pty Ltd ABN 79 112 284 787 is a member of a national association of independent entities which are all members of BDO Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit (WA) Pty Ltd and BDO Australia Ltd are members of BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation other than for the acts or omissions of financial services licensees
First Graphite Limited Consolidated Financial Report - December 2015 Page 5
Consolidated Statement of Profit or Loss and Other Comprehensive Income For the Half-Year Ended 31 December 2015Revenue from continuing operations
Note$ $
Other income 3 908 136,566
908 136,566
Exploration and evaluation expenditure | (1,289,825) | (770,781) | |
Legal expenses | (33,783) | (22,072) | |
Occupancy expenses | (115,702) | (66,033) | |
Employee benefit expenses | (9,826) | (2,918) | |
Depreciation and amortisation | (13,519) | (5,771) | |
Share based payment expense | 12 | (405,079) | (764,220) |
Other expenses from ordinary activities | (653,439) (570,392) | ||
(Loss) from continuing operations before tax | |||
expense | (2,520,265) (2,065,621) | ||
Income tax benefit/(expense) (Loss) after tax from continuing operations | - - (2,520,265) (2,065,621) |
Items which may be reclassified to the profit or loss
Foreign currency translation difference on foreign
operations (119,980) 21,734
Total comprehensive loss for the period
attributable to the owners of First Graphite Limited (2,640,245) (2,043,887)
Basic (loss) per share (cents per share) | (1.15) | (1.29) |
Diluted (loss) per share (cents per share) | (1.15) | (1.29) |
The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes
Consolidated Statement of Financial Position As at 31 December 2015Note | 31 30 December June 2015 2015 | |
$ $ | ||
Current Assets | ||
Cash and cash equivalents | 3,135,303 1,055,093 | |
Trade and other receivables | 59,472 36,172 | |
Other current assets | 4 | 42,466 32,339 |
Total Current Assets | 3,237,241 1,123,604 | |
Non-Current Assets | ||
Exploration and evaluation assets | 5 | 1,868,934 1,910,640 |
Property, plant and equipment | 261,554 61,556 | |
Total Non-Current Assets | 2,130,488 1,972,196 | |
Total Assets | 5,367,729 3,095,800 | |
Current Liabilities | ||
Trade and other payables | 678,076 484,782 | |
Total Current Liabilities | 678,076 484,782 | |
Total Liabilities | 678,076 484,782 | |
Net Assets | 4,689,653 2,611,018 | |
Equity Issued capital | 6 | 65,057,796 60,743,995 |
Reserves | 3,448,157 3,163,058 | |
Accumulated losses | (63,816,300) (61,296,035) | |
Total Equity | 4,689,653 2,611,018 |
The above consolidated statement of financial position should be read in conjunction with the accompanying notes
Issued capital | Share based | Translation reserve | Accumulated | Total equity |
payments reserve | losses |
As at 1 July 2015 | 60,743,995 | 2,848,053 | 315,005 | (61,296,035) | 2,611,018 |
Profit/(loss) for the period | - | - | - | (2,520,265) | (2,520,265) |
Other comprehensive income | - | - | (119,980) | - | (119,980) |
Total comprehensive income for the period Transactions with owners in their capacity as owners Share placement during the period | 4,578,791 | - - | (119,980) - | (2,520,265) - | (2,640,245) 4,578,791 |
Share placement to employee | - | - | - | - | - |
Share issue costs | (264,990) | - | - | - | (264,990) |
Issue of options | - | 405,079 | - | - | 405,079 |
Balance at 31 December 2015 | 65,057,796 | 3,253,132 | 195,025 | (63,816,300) | 4,689,653 |
Issued capital | Share based | Translation reserve | Accumulated | Total equity |
payments reserve | losses |
As at 1 July 2014 | 58,281,263 | 2,094,333 | 112,530 | (57,893,088) | 2,595,038 |
Profit/(loss) for the period | - | - | - | (2,065,621) | (2,065,621) |
Other comprehensive income | - | - | 21,734 | - | 21,734 |
Total comprehensive income for the period | - | - | 21,734 | (2,065,621) | (2,043,887) |
Transactions with owners in their capacity as | |||||
owners | |||||
Share placement during the period | 1,598,000 | - | - | - | 1,598,000 |
Share placement to employee | 10,500 | - | - | - | 10,500 |
Share issue costs | (75,768) | - | - | - | (75,768) |
Issue of options | - | 753,720 | - | - | 753,720 |
Balance at 31 December 2014 | 59,813,995 | 2,848,053 | 134,264 | (59,958,709) | 2,837,603 |
The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes
For the Half-Year Ended 31 December 2015
$ $
Cash flows from operating activities Payments to suppliers and employees | (802,007) | (507,354) |
Payments for exploration and evaluation | (1,211,883) | (639,368) |
Interest received | 5,285 | 11,108 |
Net cash outflows from operating activities | (2,008,605) | (1,135,614) |
Cash flows from investing activities Payments for property, plant and equipment | (220,610) | (5,433) |
Net cash (outflows)/inflows from investing |
Cash flow from financing activities Proceeds from placement of shares | 4,578,791 | 1,148,000 |
Payment for share issue costs | (264,990) | (75,768) |
Net cash inflows from financing activities | 4,313,801 | 1,072,232 |
Net increase/(decrease) in cash and cash | ||
equivalents | 2,084,586 | (68,815) |
Exchange rate adjustments | (4,376) | 82,795 |
Cash and cash equivalents at beginning of the period | 1,055,093 | 1,230,499 |
Cash at the end of the period | 3,135,303 | 1,244,479 |
The above consolidated statement of cash flows should be read in conjunction with the accompanying notes
Notes to the Consolidated Financial Statements-
Basis of Preparation of half-year financial statements
This consolidated interim financial report for the half-year reporting period ended 31December 2015 has been prepared in accordance with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Act 2001.
This 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 Financial Statements of First Graphite Limited as at 30 June 2015 and any public announcements made by First Graphite Limited during the interim reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001.
Accounting policiesThe accounting policies adopted are consistent with those of the previous financial year and corresponding interim reporting period, except as set out below:
New and amended standards adopted by the group
A number of new or amended standards became applicable for the current reporting period, however, the group did not have to change its accounting policies or make retrospective adjustments as a result of adopting these standards. There will be some changes to the disclosures in the 30 June 2015 annual report as a consequence of these amendments.
Impact of standards issued but not yet applied by the entity
-
Segment information
-
Identification of reportable segments
The Group has identified its operating segments based on the internal reports which are reviewed and used by the Board (the chief operating decision makers) in assessing performance and in determining the allocation of resources.
The existing operating segments are identified by management based on the manner in which the Group's operations were carried out during the financial year. Discrete financial information about each of these operating businesses is reported to the Board on a monthly basis.
The reportable segments are based on aggregated operating segments determined by the similarity of the asset base and revenue or income streams, as these are the sources of the Group's major risks and have the most effect on the rates of return. The Group's segment information for the current reporting period is reported based on the following segments:
Mining and exploration activities
The Board has determined the Company has one reportable segment, being mineral exploration and development in Sri Lanka. As the Company is focused on mineral exploration, the Board monitors the Company based on actual verses budgeted exploration expenditure incurred by area of interest.
Corporate services
This segment reflects the overheads associated with maintaining the ASX listed MRL corporate structure, identification of new assets and general management of an ASX listed entity.
Business Segment Exploration Corporate Service Total
31
December
2015
31
December
2014
31
December
2015
31
December
2014
31
December
2015
31
December
2014
A$ A$ A$ A$ A$ A$
Interest revenue 1,670 5,169 3,615 5,939 5,285 11,108 Foreign exchange
gain/(loss) 1,545 (1) (5,922) 81,483 (4,377) 81,482
Operating loss (756,943) (400,896) (1,763,322) (1,664,725) (2,520,265) (2,065,621)
Depreciation
expense (12,157) (4,409) (1,362) (1,362) (13,519) (5,771)
Business Segment Exploration Corporate Service Total
31
December
2015
30 June
2015
31
December
2015
30 June
2015
31
December
2015
30 June
2015
A$ A$ A$ A$ A$ A$ Segment assets 247,061 1,541,325 5,120,668 1,554,475 5,367,729 3,095,800
Segment liabilities 48,300 21,852 629,676 462,931 678,076 484,783
Notes to the Consolidated Financial Statements -
Revenue and other income
31
December
2015
$
31
December
2014
$
Interest revenue 5,285 11,108
Realisation of foreign currency reserve upon
deconsolidation of Kumai Group - 43,975 Foreign exchange (loss)/gain (4,377) 81,482
908 136,565
-
Other Current Assets
Current31 December
2015
$
30 June
2015
$
Security deposits 7,040 7,040
Prepayments 35,426 25,299
42,466 32,339
- Exploration and evaluation expenditure
The consolidated entity has adopted all of the new and revised Standards and Interpretations issued by the Australian Accounting Standards Board (AASB) which are relevant to its operations and effective for the current reporting period. The adoption of all the new and revised Standards and Interpretations has not resulted in any changes to the consolidated entity's accounting policies and has had no effect on the amounts reported for the current or prior periods.
Notes to the Consolidated Financial Statements31 December
2015
$
30 June
2015
$
Opening balance 1,910,640 1,333,325
Foreign currency translation adjustment (41,706) 127,315 Share based payment for acquisition 31 October
20141 - 450,000
Total exploration and evaluations expenditure 1,868,934 1,910,640
1 In accordance with the second stage of the agreement with The Supreme Group of Sri Lanka for the acquisition of graphite exploration licences, 5,000,000 vendor shares in FGR were issued to the Supreme Group at $0.09 per share.
First Graphite Ltd. issued this content on 11 March 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 11 March 2016 16:39:03 UTC
Original Document: http://www.mrltd.com.au/attachments/article/138/20160311-InterimFinancial Report.pdf