Half Year Financial Report
31 December 2023
ABN 70 126 678 037
CONTENTS & CORPORATE INFORMATION
Directors' Report | 1 |
Consolidated Statement of Comprehensive Income | 5 |
Consolidated Statement of Financial Position | 6 |
Consolidated Statement of Changes in Equity | 7 |
Consolidated Statement of Cash Flows | 8 |
Consolidated Notes to the Financial Statements | 9 |
Directors' Declaration | 13 |
Independent Auditor's Report | 14 |
Auditors Independence Declaration | 16 |
Board of Directors | |
Eddie King - Non-Executive Chairman | |
Myles Fang - Executive Director | |
Jason Hou - Non-Executive Director | |
Mark Calderwood - Non-Executive Director | |
Company Secretary | |
Heath Roberts | |
Larissa Brown | |
Principal and Registered Office | |
Level 1, 80 Chandos Street | |
St Leonards, NSW 2065 | |
T: +61 2 9906 7551 | |
E: info@easternresources.com.au | |
www.easternresources.com.au | |
ASX Share Register | |
Automic Group | |
GPO Box 5193 | |
Sydney, NSW 2001 | |
T: 1300 288 664 (Australia) | |
+61 2 9698 5414 (outside Australia) | |
www.investor.automic.com.au | |
Auditor | |
BDJ Partners | |
Level 8, 124 Walker Street | |
North Sydney, NSW 2060 | |
Securities Exchange Listing | |
Australian Securities Exchange | |
ASX Code: EFE |
DIRECTORS' REPORT
Your Directors submit their report for Eastern Resources Limited for the half year ended 31 December 2023.
DIRECTORS
The names of the Company's Directors in office during the half year and until the date of this report are as below. Directors were in office for this entire period unless otherwise stated.
Eddie King | Non-Executive Chairman | Appointed 10 | July 2017 |
Myles Fang | Executive Director | Appointed 12 | March 2018 |
Jason Hou | Non-Executive Director | Appointed 27 | September 2021 |
Mark Calderwood | Non-Executive Director | Appointed 12 | January 2023 |
FINANCIAL RESULTS
The net results of operations after applicable income tax expense for the half year was a loss of $728,267 (2022 $408,888). There was $396,289 of exploration and evaluation expenditure written off during the period (2022: nil).
REVIEW AND RESULTS OF OPERATIONS
LEPIDOLITE HILL LITHIUM PROJECT
During the reporting period ("Period"), the Company commenced field work at the Lepidolite Hill lithium Project ("Lepidolite Hill"), which the Company has a 70% interest in and Lithium Australian Ltd ("Lithium Australia") (ASX:LIT) retains a 30% interest.
Further to a review of existing data from Lepidolite Hill, a mapping and sampling work program was designed to enhance the geological understanding of the project, with the aim of defining drill targets. There are two prospective areas of interest; the area between the existing Lepidolite Hill pit and Tantalite Hill pegmatite outcrops, and East of Signal Hill towards the recent spodumene pegmatite discovery by Future Battery Minerals Ltd (ASX: FMB), which is east of the Company's project tenure.
The program targeted the area between the existing Lepidolite Hill pit and Tantalite Hill, and East of Signal Hill towards FBM's spodumene pegmatite discovery which is east of the Project. Historical drilling at Lepidolite Hill has discovered thick and high grade lithium bearing pegmatites at the Project (ref ASX: 7 June 2023). A drill program planned will test the potential for extensions of the LCT lithium pegmatites found at the Project, and to assess the potential for lithium bearing pegmatites adjacent to FBM's Kangaroo Hills Lithium project, where thick spodumene bearing pegmatites were identified (ref ASX: FMB12 September 2023).
Figure 1: Lepidolite Hill Project Tenements and FBM drill holes
Eastern Resources Limited | 1 |
DIRECTORS' REPORT
The Company executed a heritage Protection Agreement with the Native Title Party and completed a heritage survey at Lepidolite Hill at the end of November.
With receipt and approval of a Program of Work ("PoW") from the Department of Mines, Industry Regulation and Safety, WA ("DMIRS"), the Company engaged an experienced driller for the maiden drilling program to assess the potential for extensions of the lithium-bearing pegmatites found at Lepidolite Hill. The drilling program commenced in February 2024.
YALGOO WEST PROJECT
During the Period, the Company received assay results from the soil sampling program collected at the Yalgoo West project in May 2023. The results have identified lithium anomalies at the project (ref ASX: 24 July 2023).
The soil sampling program targeted the north segment of the Project where the greenstone belt is situated. A total of 550 soil samples were collected at various spacings between 40m and 160m apart on lines varying from 100m to 400m apart. Soil sampling was used because the outcrops of pegmatites were poor and erratic although the depth to basement rocks is believed to be shallow. As such, the value of the elemental results was as expected, lower than if rock chip samples were taken.
There are four areas where broad, anomalous lithium results were observed. These range in size from 300m by 500m to 1,000m by 1,500m. Soil sample results with over 30ppm Li and anomalous Nb, Rb and Cs are interpreted as a strong indicator of highly fractionated bedrock nearby.
All four anomalies are open on at least one side. Whilst one of the anomalies lies near to a known lithium-bearing prospect, Yalgoo West Lithium, the remaining three do not. At the sampled areas without broad zones of elevated lithium results the presence of elevated lithium on the margins indicate additional sampling will be needed to test for potential extensions.
Figure 2: Soil Sample Locations and Anomalies
Eastern Resources Limited | 2 |
DIRECTORS' REPORT
Figure 3: Soil Lithium Anomalies at Yalgoo West Project
TAYLOR LOOKOUT PROJECT
In September 2023, the Company completed field work to assess the tenement for pegmatite-hostedLithium-Caesium- Tantalum (LCT) mineralization. Rock chip samples were collected and transferred to a Perth laboratory for analysis.
TRIGG HILL LITHIUM PROJECT
During the Period, the Company conducted a review of the exploration program which focused on assessing previous data from the project. Further to the review a PoW was lodged and subsequently approved by the DMIRS.
LAKE JOHNSTON PROJECT
No exploration activities were conducted at the Lake Johnston project during this Period.
NOWA NOWA IRON PROJECT
During the Period, the Company continued to work on the Environmental Effects Assessment ("EES") approval process, which is an all-inclusive permitting approach including all planning and operating licence requirements for the development and operation of the Nowa Nowa Iron project.
The following assessments have currently been undertaken: Aboriginal Cultural Heritage Impact assessment, Ecology Impact assessment, Traffic Impact assessment and a Groundwater Impact assessment.
The iron ore price continues to perform strongly and whilst any development decision at Nowa Nowa is some way off, a strengthening underlying iron ore price is anticipated to support more robust commercialisation or monetisation alternatives.
NOWA NOWA COPPER PROJECT
In September 2023, the application for the renewal of the Nowa Nowa Copper Project EL 006183 was approved by the Department of Energy, Environment and Climate Action of Victoria.
No exploration work was carried out during the Period.
Eastern Resources Limited | 3 |
DIRECTORS' REPORT
CURLEW MINE
During the Period, the Company terminated the Amended and Restated Option Agreement and Deed of Assignment and Assumption executed in January 2023 with Amery Holdings Pty Ltd and Curlew Mine Pty Ltd ("DoAA") to acquire 50% ownership of the Tenement, including 100% interests of all mineral rights except beryl minerals in the Tenement. Termination of the DoAA was due to the Completion Conditions not being met and satisfied in the agreed timeframe.
CORPORATE
NEW PROJECTS SEARCH AND ACQUISITION
The Company has actively reviewed opportunities to acquire an advanced exploration or near-development project in this Period. A number of projects have been evaluated, and the Company has been in commercial discussion with various parties.
PRINCIPAL ACTIVITIES
The principal activity of the Company is the exploration of iron ore, lithium and base metal resources and the development of those resources into economic, cash flow generating mines.
DIVIDENDS
No dividends were paid or proposed during the period.
SUBSEQUENT EVENTS AFTER THE BALANCE DATE
- In February 2024, reverse circulation drilling commenced at the Lepidolite Hill Lithium Project. The drilling program is designed to assess the potential for extensions of the lithium-bearing pegmatites found at the Project, and to target the area between the existing Lepidolite Hill pit and Tantalite Hill, and East of Signal Hill towards FBM's spodumene- bearing pegmatite at the east of the Project.
- In view of the low overall tenor of results from the field work carried out at Taylor Lookout in September 2023, the company have decided to withdraw from the earn-in under the Heads of Agreement between Legacy and EFE dated on 25 February 2022.
AUDITOR'S INDEPENDENCE DECLARATION
A copy of the Auditor's Independence Declaration to the Directors as required under section 307C of the Corporations Act 2001 is set out on page 16.
Signed in accordance with a resolution of the directors.
Eddie King
Chairman
4 March 2024
Eastern Resources Limited | 4 |
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE HALF YEAR ENDED 31 DECEMBER 2023
31 December | 31 December | ||
2023 | 2022 | ||
Note | $ | $ | |
Revenue | 4 | 93,003 | - |
ASX and ASIC fees | (39,196) | (48,144) | |
Audit fee | (13,000) | (11,000) | |
Contract administration services | (137,663) | (123,382) | |
Directors' fees (net of costs recharged to exploration projects) | (104,323) | (72,000) | |
Share-based payments | (59,467) | (74,355) | |
Rent | (12,501) | (4,934) | |
Insurance | (14,335) | ||
(9,380) | |||
Exploration and evaluation expenditure written off | 6 | (396,289) | - |
Other expenses from ordinary activities | (49,451) | (60,738) | |
Loss before income tax expense | (728,267) | (408,888) | |
Income tax expense | |||
Loss after income tax expense | (728,267) | (408,888) | |
Other comprehensive income | |||
Other comprehensive income for the period, net of tax | - | - | |
Total comprehensive (loss) attributable to members of | |||
Eastern Resources Limited | (728,267) | (408,888) | |
Basic loss per share (cents per share) | 8 | (0.06) | (0.04) |
Diluted loss per share (cents per share) | 8 | (0.06) | (0.04) |
The Consolidated Statement of Comprehensive Income should be read in conjunction with the accompanying notes.
Eastern Resources Limited | 5 |
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023
31 December | 30 June | ||
2023 | 2023 | ||
Note | $ | $ | |
Current assets | |||
Cash assets | 5 | 5,017,590 | 5,905,839 |
Receivables | 94,326 | 114,286 | |
Total current assets | 5,111,916 | 6,020,125 | |
Non-current assets | |||
Tenement security deposits | 7 | 20,000 | 20,000 |
Property, plant and equipment | 3,022 | 880 | |
Deferred exploration and evaluation expenditure | 6 | 7,192,359 | 7,190,147 |
Total non-current assets | |||
7,215,381 | 7,211,027 | ||
Total assets | 12,327,297 | 13,231,152 | |
Current liabilities | |||
Payables | 70,492 | 305,547 | |
Total current liabilities | 70,492 | 305,547 | |
Total liabilities | 70,492 | 305,547 | |
Net assets | 12,256,805 | 12,925,605 | |
Equity | |||
Contributed equity | 9 | 26,398,137 | 26,398,137 |
Accumulated losses | (14,329,658) | (14,344,642) | |
Reserves | 10 | 188,326 | 872,110 |
Total equity | 12,256,805 | 12,925,605 | |
The Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes.
Eastern Resources Limited | 6 |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE HALF YEAR ENDED 31 DECEMBER 2023
Contributed | Accumulated | |||||
equity | losses | Reserves | Total equity | |||
Note | $ | $ | $ | $ | ||
At 1 July 2022 | 21,511,462 | (13,814,775) | 931,883 | 8,628,570 | ||
Loss for the period | - | (408,888) | - | (408,888) | ||
Other comprehensive income | - | - | - | - | ||
Total comprehensive income/(loss) for the | - | (408,888) | - | (408,888) | ||
period | ||||||
Transactions with owners in their | ||||||
capacity as owners: | ||||||
Exercise of options | 10 | 513,100 | - | - | 513,100 | |
Share-based payments | 11 | - | - | 74,355 | 74,355 | |
Exercised of employee share option value | 11 | - | 20,755 | (20,755) | - | |
transferred to accumulated losses | ||||||
Underwriter options offer | 11 | - | - | 376 | 376 | |
Issue of share capital | 10 | 3,011,000 | - | - | 3,011,000 | |
Asset acquisition | 7 | 500,000 | - | - | 500,000 | |
Transaction costs arising on share issue | 10 | (175,888) | - | - | (175,888) | |
Total transactions with owners in their | 3,848,212 | 20,755 | 53,976 | 3,922,943 | ||
capacity as owners | ||||||
At 31 December 2022 | 25,359,674 | (14,202,908) | 985,859 | 12,142,625 | ||
At 1 July 2023 | 26,398,137 | (14,344,642) | 872,110 | 12,925,605 | ||
Loss for the period | - | (728,267) | (728,267) | |||
Other comprehensive income | - | - | - | - | ||
Total comprehensive income/(loss) for the | |
period | |
Transactions with owners in their | |
capacity as owners: | |
Share-based payments | 10 |
Lapsed of employee share option value | ||||
10 | ||||
transferred to accumulated losses | ||||
Total transactions with owners in their | ||||
capacity as owners | ||||
At 31 December 2023 | ||||
(728,267) | - | (728,267) | |||||
59,467 | 59,467 | ||||||
743,251 | (743,251) | - | |||||
- | 743,251 | (683,784) | 59,467 | ||||
26,398,137 | (14,329,658) | 188,326 | 12,256,805 | ||||
The Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes.
Eastern Resources Limited | 7 |
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE HALF YEAR ENDED 31 DECEMBER 2023
31 December | 31 December | ||
2023 | 2022 | ||
Note | $ | $ | |
Cash flows from operating activities | |||
Payments to suppliers and employees | (411,683) | (370,650) | |
Interest received | 90,901 | - | |
Net cash flows (used in) operating activities | (320,782) | (370,650) | |
Cash flows from investing activities | |||
Payments for deferred exploration and evaluation expenditure | (564,652) | (940,536) | |
Payments for property, plant and equipment | (2,815) | - | |
Payments for other asset | (50,000) | ||
- | |||
Payments for asset acquisition | - | (250,000) | |
Net cash flows (used in) investing activities | (567,467) | (1,240,536) | |
Cash flows from financing activities | |||
Proceeds from issue of shares | 9 | - | 3,011,000 |
Proceeds from exercise of options | - | 513,476 | |
Payments for share issue costs | 9 | - | (174,711) |
Net cash flows (used in) from financing activities | - | 3,349,765 | |
Net increase (decrease) in cash held | (888,249) | 1,738,579 | |
Add opening cash brought forward | 5,905,839 | 4,609,889 | |
Closing cash carried forward | 5 | 5,017,590 | 6,348,468 |
The Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes.
Eastern Resources Limited | 8 |
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Eastern Resources Ltd. published this content on 04 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 March 2024 01:18:04 UTC.