DIRECTORS' REPORT 3
AUDITOR' S INDEPENDENCE DECLARATION 9
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER
COMPREHENSIVE INCOME 10
CONSOLIDATED STATEMENT OF FINANCI AL POSITION 11
CONSOLIDATED STATEMENT OF CASH FLOWS 12
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 13
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 14
INDEPENDENT AUDITOR' S REVIEW REPORT 21
This 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 report for the year ended 30 June 2016 and any public pronouncements made by MAGNIS RESOURCES LIMITED during the interim reporting period in accordance with the continuous disclosure requirements of the Australian Securities Exchange.
DIRECTORS' REPORTYour Directors present their report on the consolidated entity of Magnis Resources Limited ("Magnis" or the "Company", ASX Code : MNS) for the half-year ended 31 December 2016.
DIRECTORSThe following persons were Directors of the Company during the half-year and up to 31 December 2016:
Frank Poullas (Non Executive Chairman)
Johann C Jooste-Jacobs (Non Executive Director) Peter Tsegas (Non Executive Director)
Professor M. Stanley Whittingham (Non Executive Director, Appointed 4 November 2016) Marc Vogts (Non Executive Director, Appointed 2 November 2016)
Peter Sarantzouklis (Non Executive Director, Appointed 2 November 2016) Len Eldridge (Executive Director, Resigned 31 October 2016)
Colin Johnstone (Non Executive Director, Resigned 31 October 2016)
COMPANYOVERVIEWMagnis Resources Limited is an Australian based graphite exploration and development company, listed on the ASX. The Company is focused on the development of its 100% owned Nachu Graphite Project in Tanzania, East Africa, with production to be targeted for lithium-ion battery markets for electric vehicles, energy storage and many other purposes including nuclear reactors.
REVIEW ANDRESULTS OFOPERATIONSThe net loss after tax of the consolidated entity for the half-year ended 31 December 2016 was $5,960,816 (2015: $7,007,982) which was mainly due to exploration expenditure of
$2,628,468 (2015: $4,389,439) that encompassed costs involved in the land valuation procedures, tenement re-valuations and land compensation payments to Project Affected Persons (PAP) for the Nachu Graphite Project in SE Tanzania.
An operational overview is set out below.
Overview
The exploration, valuation and operational activities for the half year ended 31 December 2016 were primarily focused on the pre-development work, land valuation and compensation payments at the Nachu Graphite Project.
The Nachu Project is west of the coastal city of Lindi and approximately 220km by road from the port city of Mtwara.
Land Valuation, Compensation and Re-settlement Process
The valuations for re-settlement and land compensation activities on the Nachu Graphite Project have now been completed, paving the way for construction of the mine.
An official valuation of the area within the Special Mining Licence (SML 550/2015) has now been completed and a total of US$3.4 million was calculated for the complete compensation package of crops and trees, land area, structures and other required items such as
disturbance allowance. The valuation documents were accepted and approved for payment by the Chief Government Valuer.
The area of the SML is approximately 30km2and the valuation covered a total of 773 people or households who are affected by the project (Figure 1). Most of the people affected are being compensated for farm plots and there are 59 households on the SML that will be offered relocation to a new village area.
To complete the valuation, the Company contracted Paulsam Geo-engineering to manage the process and Ardhi University of Dar es Salaam to assist. The valuation exercise consisted of approximately 200 people including survey teams, valuation teams, Magnis representatives, Uranex Tanzania staff and Paulsam staff and monitors.
Figure 1 - Plan showing the individual parcels of land in the Special Mining Licence area.
The cost of both the compensation and re-settlement is consistent with estimations within the Bankable Feasibility Study.
Magnis Resources Ltd. published this content on 09 March 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 17 March 2017 08:23:19 UTC.
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