Royalco Resources : December 2018 Half Yearly Report

Royalco Resources Limited

ABN 53 096 321 532

Half-year Financial Report - 31 December 2018

Royalco Resources Limited Corporate directory

Directors

Company secretary Registered officePrincipal place of businessShare registerAuditorBankersStock exchange listingMs Susan Thomas (Non-Executive Chair)

• Mr Malcolm McComas (Non-Executive Director)

• Mr David Croll (Non-Executive Director)

• Mr Justin Clyne

Suite 6.02, Level 6 28

Sydney NSW 2000

Suite 6.02, Level 6

Sydney NSW 2000

Security Transfer Registrars Pty Ltd 770 Canning Highway

Applecross

Western Australia 6153

Deloitte Touche Tohmatsu Grosvenor Place

225 George Street Sydney NSW 2000

National Australia Bank

255 George Street, Sydney NSW 2000 Commonwealth Bank of Australia

367 Collins Street, Melbourne Victoria 3000

Royalco Resources Limited shares are listed on the Australian Securities Exchange (ASX code: RCO)

Website

www.royalco.com.au

Royalco Resources Limited Directors' report

The directors present their report, together with the financial statements, on the company for the half-year ended 31

December 2018.

Directors

The following persons were directors of the company during the whole of the financial half-year and up to the date of this report, unless otherwise stated:

Ms Susan Thomas (Non-Executive Chair)

• Mr Malcolm McComas (Non-Executive Director)

• Mr Geoff Barker (Non-Executive Director - resigned 30 September 2018)

• Mr David Croll (Non-Executive Director - appointed 3 September 2018)

Principal activities

During the financial half-year the principal continuing activity of the company was management of resource based royalties.

Review of operations

The loss for the company after providing for income tax amounted to $85,124 (31 December 2017: $227,650).

Significant changes in the state of affairs

The consolidated entity continues with the disposal process of the Weeks Royalty and provides periodic updates in respect of the sales process in its announcements to the Australian Securities Exchange.

There were no other significant changes in the state of affairs of the company during the financial half-year.

Matters subsequent to the end of the financial half-year

No matter or circumstance has arisen since 31 December 2018 that has significantly affected, or may significantly affect the company's operations, the results of those operations, or the company's state of affairs in future financial years.

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 immediately after this directors' report.

This report is made in accordance with a resolution of directors, pursuant to section 306(3)(a) of the Corporations Act 2001.

On behalf of the directors

___________________________ Susan Thomas

Non-Executive Chair

8 March 2019 Sydney

8 March 2019

The Board of Directors Royalco Resources Ltd GPO Box 4626 Sydney NSW 2001

Dear Board Members

Deloitte Touche Tohmatsu ABN 74 490 121 060

Royalco Resources Limited

Grosvenor Place 225 George Street Sydney, NSW, 2000 Australia

Phone: [phone]www.deloitte.com.au

In accordance with section 307C of the Corporations Act 2001, I am pleased to provide the following declaration of independence to the directors of Royalco Resources Limited.

As lead audit partner for the review of the financial statements of Royalco Resources Limited for the half-year ended 31 December 2018, I declare that to the best of my knowledge and belief, there have been no contraventions of:

• (i) the auditor independence requirements of the Corporations Act 2001 in relation to the review; and

• (ii) any applicable code of professional conduct in relation to the review.

Yours sincerelyDELOITTE TOUCHE TOHMATSU

Cheryl Kennedy Partner

Chartered Accountants

Liability limited by a scheme approved under Professional Standards Legislation Member of Deloitte Touche Tohmatsu Limited 3

Royalco Resources Limited Contents

Condensed statement of profit or loss and other comprehensive income 5

Condensed statement of financial position 6

Condensed statement of changes in equity 7

Condensed statement of cash flows 8

Notes to the condensed financial statements 9

Directors' declaration 12

Independent auditor's review report to the members of Royalco Resources Limited 13

General information

The financial statements cover Royalco Resources Limited (Royalco) as an individual entity. The financial statements are presented in Australian

Royalco is a listed public company limited by shares, incorporated and domiciled in Australia. Its registered office and principal place of business is:

Suite 6.02, Level 6

28 O'Connell Street Sydney NSW 2000

A description of the nature of the company's operations and its principal activities are included in the directors' report, which is not part of the financial statements.

The financial statements were authorised for issue, in accordance with a resolution of directors, on 7 March 2019. The directors have the power to amend and reissue the financial statements.