Announcement PDF INVESTIGATOR RESOURCES LIMITED ABN 90 115 338 979 HALF YEAR FINANCIAL REPORT FOR THE HALF YEAR ENDED 31 DECEMBER 2015 CORPORATE DIRECTORY DIRECTORS AUSTRALIAN BUSINESS NUMBER R. Marshall OBE - Chairman J. A. Anderson - Managing Director D.G. Jones - Non-Executive Director B. E. Foy - Non-Executive Director 90 115 338 979 COMPANY SECRETARY Peter Harding-Smith ASX Code: IVR REGISTERED OFFICE Suite 48, Level 3, Benson House 2 Benson Street Toowong Qld 4000 Website: www.investres.com.au SHARE REGISTRY Computershare Limited 117 Victoria Street West End QLD 4101 SOLICITORS HopgoodGanim Level 8, Waterfront Place 1 Eagle Street Brisbane Qld 4000 AUDITOR Grant Thornton Audit Pty Ltd Level 18, King George Central 145 Ann Street Brisbane Qld 4000 Content Page Directors’ Report Auditor’s Independence Declaration Consolidated Statement of Comprehensive Income Consolidated Statement of Financial Position Consolidated Statement of Changes in Equity Consolidated Statement of Cash Flow Notes to the Financial Statements Competent Persons Statement Directors’ Declaration Independent Auditor’s Review Report 3 5 6 7 8 9 10 13 14 15 2 INVESTIGATOR RESOURCES LIMITED and its controlled entities ABN 90 115 338 979 DIRECTORS’ REPORT Your Directors submit their report for the half year ended 31 December 2015. Directors The names of the Company’s Directors in office during the half year and until the date of this report are set out below. All Directors held office for the whole of the period. R. Marshall OBE - Chairman J. A. Anderson - Managing Director D.G. Jones - Non-Executive Director B. E. Foy - Non-Executive Director Review of Operations The Company recorded a surplus for the half year ended 31 December 2015 of $1,223,114 (2014: $1,341,992). The surplus resulted from $1,920,805 in tax refunds, one received and another lodged but yet to be received, under the Federal Government’s Research and Development (“R&D”) Tax Incentive program. The refund was for expenditure in relation to experimental work conducted as part of the Company’s on-going studies of the nature of the geology and the mineral potential of the Company’s tenements in the Uno Province, in South Australia. During the period the Company incurred some $1.3 million on exploration activities at the Company’s tenements. The main activities during the half year included: • Completion of the upgraded Paris Resource estimate; 8.8Mt @ 116g/t silver (50g/t silver cut-off), containing 33Moz silver. • Extensive review work was undertaken on improving the Paris deposit geological understanding, resulting in the application of a more appropriate geostatistical method for the Paris deposit style. • Further drilling at Nankivel and Peterlumbo Hill prospects, confirmed skarn and porphyry copper discovery opportunities in the broader Paris minerals system. • A review of historical drilling results identified nickel sulphide potential in widespread basement ultramafics at the Diomedes prospect, near Paris. • A detailed magnetic and gravity geophysical survey was flown over the eastern portion of the Morgans tenement, including the 12 Mile prospect to assess the Uno Fault, sub-parallel east-west epithermal veins cutting the basement and associated small bodies of high-level Hiltaba Granite for silver and copper targets. The survey also enabled the assessment of magnetic targets associated with the proposed Archaean basement. • Mapping and sampling of outcrop and float continued, with targeting guided by soil geochemistry, at the Thurlga JV tenement. Geophysics analysis has identified a number of conductive and resistive bodies in the northern area, within or near to the Uno Fault. • Significant tenement applications submitted for new copper and nickel prospective areas highlighted by breakthrough magnetotelluric geophysical research. The research indicates a possible deep metal corridor connecting the Olympic Dam IOCG belt with the Uno Province. The new applications are in the geological terrain known as the Stuart Shelf 3 where the new concept has revitalised the copper potential both in the cover and for undiscovered IOCG deposits in the underlying basement. Auditor Independence A copy of the auditor’s independence declaration as required under section 307C of the Corporations Act 2001 is attached. Signed in accordance with a resolution of the Directors. R Marshall OBE Chairman Brisbane 23 February 2015 J A Anderson Managing Director 4 ! " # $ % &''' ' # $ % &''' ( )* + ,) ) ...) / ) -) , !" # $ % $ "& $ $ ' ( ) $ ( " $ * + (, ,-. (,.( /# , 0,1 ,# #2 3 0 ! 4 5 $ 6 $ 0/ , , 4 " 5 ( ) *, ( , / , 0/ 1) / 5 , 1 / - , 1 / - ) 7 1 ( 2 & 3 & 3 0/ 1 1 0/ " , ./ / / 0/ - - ( - - ( - ( 0/ 8 1 / - - ( - ) 08 )8 / , " 16 / , ) 08 , 1 , ( 2 , ( / 0/ '% $& 3 6 " 9 08 :) 08 1 / / - - ( ) 08 - - ( -4 0/ 5- 1 ( 0/ , - ) ) 1 - 7 ( . - - / ) 08 . (6 - , / 2 ./ '% ( - 6 / /- - ( / $& 3 , INVESTIGATOR RESOURCES LIMITED and its controlled entities ABN 90 115 338 979 CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME for the half year ended 31 December 2015 Note Consolidated 2015 2014 $ $ Revenue 2 30,546 54,072 Administrative expenses 2 (363,864) (486,517) Employee benefit expenses 2 (347,654) (433,265) Exploration and evaluation expenditure written off 2 (16,719) (94,548) Loss before income tax expense (697,691) (960,258) Income tax (expense)/income 1,920,805 2,302,250 Profit attributable to members of the company 1,223,114 1,341,992 - - 1,223,114 1,341,992 0.26 0.26 0.30 0.30 Other comprehensive income for the period, net of tax Total comprehensive income for the year attributable to the members of the company Basic earnings per share (cents per share) Diluted earnings per share (cents per share) The accompanying notes form part of this financial report 6 INVESTIGATOR RESOURCES LIMITED and its controlled entities ABN 90 115 338 979 CONSOLIDATED STATEMENT OF FINANCIAL POSITION as at 31 December 2015 Note Consolidated 31 December 30 June 2015 2015 $ $ CURRENT ASSETS Cash and cash equivalents 3 1,705,978 2,588,279 Receivables 4 963,637 17,225 12,866 9,984 2,682,481 2,615,488 28,479,270 27,162,744 Property plant and equipment 158,601 232,195 Other financial assets 31,415 31,465 Total Non-Current Assets 28,669,286 27,426,404 TOTAL ASSETS 31,351,767 30,041,892 Trade and other payables 150,092 132,189 Employee benefit provisions 226,659 209,795 Total Current Liabilities 376,751 341,984 Employee benefit provisions 126,229 107,566 Total Non-Current Liabilities 126,229 107,566 TOTAL LIABILITIES 502,980 449,550 30,848,787 29,592,342 Contributed equity 44,937,503 44,937,503 Share option reserve 900,070 866,739 Accumulated losses (14,988,786) (16,211,900) TOTAL EQUITY 30,848,787 29,592,342 Inventories Total Current Assets NON CURRENT ASSETS Exploration and evaluation assets CURRENT LIABILITIES NON CURRENT LIABILITIES NET ASSETS EQUITY The accompanying notes form part of this financial report 7 INVESTIGATOR RESOURCES LIMITED and its controlled entities ABN 90 115 338 979 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY for the half year ended 31 December 2015 Note Consolidated Accumulated Share Losses Option Reserve $ Share Capital $ Total $ 2014 Balance at 1 July 2014 42,176,482 (13,891,324) 747,795 29,032,953 Shares issued during the period (net of costs) 2,761,022 - - 2,761,022 Options issued to key management personnel - - 34,515 34,515 Options issued employees - - 33,459 33,459 - 1,341,992 - 1,341,992 44,937,504 (12,549,332) 815,769 33,203,941 44,937,503 (16,211,900) 866,739 29,592,342 - - 33,331 33,331 - 1,223,114 - 1,223,114 44,937,503 (14,988,786) 900,070 30,848,787 Transactions with owners - to Comprehensive income Balance at 31 December 2014 2015 Balance at 1 July 2015 Transactions with owners - Options issued employees Comprehensive income Balance at 31 December 2015 to The accompanying notes form part of this financial report 8 INVESTIGATOR RESOURCES LIMITED and its controlled entities ABN 90 115 338 979 CONSOLIDATED STATEMENT OF CASH FLOWS for the half year ended 31 December 2015 Note Consolidated 2015 2014 $ $ CASH FLOWS FROM OPERATING ACTIVITIES Interest received 33,397 39,084 Research and development grant 968,670 2,302,250 Payments to suppliers and employees (545,067) (823,441) Net cash provided by (used in) operating activities 457,000 1,517,893 (1,339,301) (2,159,094) Purchase of property plant and equipment - - Proceeds from disposal of property plant and equipment - 37,727 (1,339,301) (2,121,367) Proceeds from issue of shares - 2,476,093 Costs associated with share issue - (158,807) Net cash provided by (used in) financing activities - 2,317,286 Net increase / (decrease) in cash and cash equivalents during the period (882,301) 1,713,812 Cash and cash equivalents at beginning of period 2,588,279 2,931,300 1,705,978 4,645,112 CASH FLOWS FROM INVESTING ACTIVITIES Exploration and evaluation expenditure Net cash provided by (used in) investing activities CASH FLOWS FROM FINANCING ACTIVITIES Cash and cash equivalents at end of period 3 The accompanying notes form part of this financial report 9 INVESTIGATOR RESOURCES LIMITED and its controlled entities ABN 90 115 338 979 NOTES TO THE FINANCIAL STATEMENTS for the half year ended 31 December 2015 1. Basis of preparation of half-year Financial Report This general purpose financial report for the half-year reporting period ended 31 December 2015 has been prepared in accordance with Australian Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Act 2001. This half-year financial Report does not include all the notes of the type normally included in annual financial report and therefore cannot be expected to provide as full an understanding of the financial performance, financial position and financing and investing activities of the consolidated entity as the full financial report. Accordingly, this half-year financial report is to be read in conjunction with the annual financial report for the year ended 30 June 2015 and any public announcements made by Investigator Resources Ltd during the half-year reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001. The same accounting policies and methods of computation have generally been followed in this half-year financial report as compared with the most recent annual financial report. a. Going Concern The half-year report has been prepared on a going concern basis which contemplates the continuity of normal business activities and the realisation of assets and discharge of liabilities in the ordinary course of business. The ability of the Company to continue to adopt the going concern assumption will depend upon a number of matters including the successful raising in the future of necessary funding through debt, equity or farm-out, or the successful exploration and subsequent exploitation of the Company’s tenements. In the absence of these matters being successful, there exists a material uncertainty that may cast significant doubt on the Company’s ability to continue as a going concern with the result that the Company may have to realise its assets and extinguish its liabilities other than in the ordinary course of business, and at amounts different from those stated in the financial report. No adjustments for such circumstances have been made in the financial report. b. Comparatives When required by Accounting Standards, comparatives have been adjusted to conform to changes in presentation for the current financial half-year. c. New and amended accounting standards New and revised standards have been issued by the AASB and are effective for the half-year; however there are no material changes to the policies that affect measurement of the results or financial position of the consolidated entity. d. Fair values The fair values of the consolidated entity’s financial assets and liabilities approximate their carrying value. No financial assets or liabilities are readily traded on organised markets in standardised form. 10 INVESTIGATOR RESOURCES LIMITED and its controlled entities ABN 90 115 338 979 NOTES TO THE FINANCIAL STATEMENTS for the half year ended 31 December 2015 Consolidated Half year Half year ended 31 ended 31 December December 2015 2014 $ $ 2. Revenue and expenses The following revenue and expense items are relevant in explaining the financial performance for the period: Revenue and other income Interest received from other persons 30,546 54,072 Total revenue and other income 30,546 54,072 Administrative expenses include Audit and accounting fees Company secretarial fees Depreciation (Profit) / loss on disposal of property plant & equipment Directors fees Insurance and legal Minimum lease rental payments Office expenses Shareholder communications and company promotion Other expenses Administration expenses charged to exploration 27,946 25,000 73,594 92,033 27,406 44,688 37,616 50,833 46,111 (61,363) 16,502 60,000 95,678 (12,207) 97,594 4,300 45,247 71,253 119,850 55,012 (66,713) Total administrative expenses 363,864 486,517 Employee benefit expenses include Benefits provided to employees Charged to exploration and evaluation projects Employee options expense 883,391 (569,068) 33,331 969,926 (604,635) 67,974 Total employee benefits expense 347,654 433,265 Exploration and evaluation expenditures written off include: Incurred in current year Impairment of expenditure capitalised in prior years 16,719 - 45,756 48,792 Exploration and evaluation expenses written off 16,719 94,548 11 INVESTIGATOR RESOURCES LIMITED and its controlled entities ABN 90 115 338 979 NOTES TO THE FINANCIAL STATEMENTS for the half year ended 31 December 2015 3. Cash and Cash Equivalents 31 December 2015 $ 1,705,978 2,588,279 Other Receivables 11,500 17,225 R&D Receivable 952,137 - Total Receivables 963,637 17,225 Cash at bank and on hand 4. 30 June 2015 $ Receivables R&D Receivable relates the lodgement of a R&D Tax Incentive claim made December 2015. 5. Share Capital During the six months to 31 December 2015, there has been no movement in share capital. In July 2014, the Company announced that it had agreed to acquire Peterlumbo Joint Venture (PJV) partner Mega Hindmarsh’s (Mega’s), interest in the PJV. Consideration for the acquisition was the issue of 12,011,569 shares in the Company escrowed for 12 months. The transaction was completed on 14 July 2014. On 30 July 2014, the Company issued a prospectus to raise up to $3,237,176 by offering the remaining Rights Issue Shortfall arising from the non-renounceable 2:5 Rights Issue prospectus lodged with ASIC on 29 April 2014 and comprising up to 80,929,404 New Shares with 1 New Option for every 1 New Share allotted. New Shares were issued at a price of $0.04 per New Shares with each New Option being exercisable at $0.10 per share and expiring on 31 March 2017. The Offer closed on 7 August 2014 following which 61,902,318 New Shares and Options were issued and $2,476,093 was raised (before costs of the issue). 6. Interests in Joint Operations and Farm-in Arrangements The following changes in joint operations and farm-in arrangements occurred in the six months ended 31 December 2015. The Company continues exploration activities on the Thurlga tenement (EL5419), towards earning a 75% equity interest in the Joint Venture through the total expenditure of A$750,000 by 30 June 2017. At the date of this report, the Company has no other interest in joint operations or farm-in arrangements. 12 INVESTIGATOR RESOURCES LIMITED and its controlled entities ABN 90 115 338 979 NOTES TO THE FINANCIAL STATEMENTS for the half year ended 31 December 2015 7. Expenditure Commitments and Contingent Liabilities Other than as disclosed in this report, there were no significant changes to the commitments and contingencies disclosed in the most recent annual financial report. 8. Subsequent Events In February 2016 Investigator Resources received its R&D Tax Incentive claim of $952,137. This amount had been recognised as a receivable at 31 December 2015. Apart from the above matter, no other matters or circumstances have arisen since 31 December 2015, which significantly affect or may significantly affect the operations of the Company, the results of those operations, or the state of affairs of the Company in subsequent financial years. Competent Persons Statements The information in this report that relates to Exploration Results is based on information compiled by Mr John Anderson, a Competent Person who is a Member of The Australasian Institute of Mining and Metallurgy. Mr Anderson is a fullǦtime employee of the Company. Mr Anderson has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Anderson consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. The information that relates to the Mineral Resource Estimates at the Paris Silver Project is extracted from the report entitled 'Updated Paris Resource Estimate’ dated 9 November 2015 and is available to view on www.asx.com.au. The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcement. Forward Looking Statement Statements regarding plans with respect to the Company’s mineral properties are forward-looking statements. There can be no assurance that the Company’s plans for development of its mineral properties will proceed as currently expected. There can also be no assurance that the Company will be able to confirm the presence of additional mineral deposits, that any mineralisation will prove to be economic or that a mine will successfully be developed on any of the Company’s mineral properties. 13 INVESTIGATOR RESOURCES LIMITED and its controlled entities ABN 90 115 338 979 DIRECTORS’ DECLARATION The Directors of the Company declare that: 1. The financial statements and notes: a) comply with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations; and b) give a true and fair view of the economic entity’s financial position as at 31 December 2015 and of its performance for the half-year ended on that date. 2. In the directors’ opinion there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable. This declaration is made in accordance with a resolution of the Board of Directors. 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