Brockman Mining : Interim Results Announcement - 6 months ended 31 Dec 21

INTERIM RESULTS ANNOUNCEMENT

FOR THE SIX MONTHS ENDED 31 DECEMBER 2021

(incorporated in Bermuda with limited liability)

(SEHK Stock Code: 159)

(ASX Stock Code: BCK)

布萊克萬礦業有限公司 *

BROCKMAN MINING LIMITED

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

onlyuseThe Board of Directors (the "Board") of Brockman Mining Limited (the "Company") announces the

unaudited consolidated interim results of the Company and its subsidiaries (the "Group") for the six months
personalOther income	-	162

ended 31 December 2021, together with the comparative figures for the corresponding period in 2020. The un udited consolidated interim results have been reviewed by the Company's Audit Committee and the Company's independent auditor in accordance with International Standard on Review Engagement 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity".

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

		Six months ended
		31 December
		2021		2020
	Note	HK$'000	HK$'000
		(Unaudited)	(Unaudited)
Administrative expenses		(14,617)	(7,933)
Exploration and evaluation expenses		(8,163)	(3,547)
Operating loss		(22,780)	(11,318)
Finance income		9		78
inance costs		(3,174)	(737)
Forinance costs, net
6	(3,165)	(659)
Share of loss of joint ventures		(61)	(62)
Loss before income tax		(26,006)	(12,039)
Income tax benefit	7	3,108		9,778
Loss for the period		(22,898)	(2,261)

* For identification purpose only

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only
Other comprehensive (loss)/income
Item that may be reclassified to profit or loss
Exchange differences arising from translation of
	f reign operations
Other comprehensive (loss)/income for the period
Total comprehensive (loss)/income for the period
useLoss for the period attributable to:
Equity holders of the Company
personalFor
Tot l comprehensive (loss)/income attributable to:
Equity holders of the Company
L	ss per share attributable to the equity holders of

  the Company during the period Ba ic loss per share

Diluted loss per share

	Six months ended
	31 December
	2021	2020
Note	HK$'000	HK$'000
	(Unaudited)	(Unaudited)

(13,038) 73,301

(13,038) 73,301

(35,936) 71,040

(22,898) (2,261)

(35,936) 71,040

	HK cents	HK cents
8	(0.25)	(0.02)
8	(0.25)	(0.02)

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CONDENSED CONSOLIDATED BALANCE SHEET

onlyMining exploration properties   Property, plant and equipment   Right-of-use assets

Non-current assets

  Interest in joint ventures   Other non-current assets

useCurrent assets

  Other receivables, deposits and prepayments   Cash and cash equivalents

personalBorrowings
Tot l assets
Equity and liabilities
	Share capital
	Reserves
	Accumulated losses
Total equity attributable to the equity holders of
	the Company

Non-current liabilities

  Deferred income tax liability

  Lease liabilities

Current liabilities

	Trade and other payables
ForLease liabilities
	Provisions

Total liabilities

Total equity and liabilities

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	31 December	As at
		30 June
	2021		2021
Note	HK$'000		HK$'000
	(Unaudited)		(Audited)
9	762,461		784,933
	175		167
	1,169		1,538
	660		703
	129			132
	764,594			787,473
	1,965		1,033
	38,218			45,667
	40,183			46,700
	804,777			834,173
12	927,923		927,923
	3,849,162		3,855,804
	(4,160,923)	(4,138,025)
	616,162			645,702
	119,980	126,706
11	59,059	57,245
	971	1,111
	180,010			185,062
10	6,646			1,123
	609		828
	1,350			1,458
	8,605			3,409
	188,615			188,471
	804,777			834,173

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL INFORMATION

1. BASIS OF PREPARATION

For personal use only

This interim condensed consolidated financial information for the six months ended 31 December 2021 has been prepared in accordance with International Accounting Standard ('IAS') 34 Interim Financial Reporting. The interim condensed consolidated financial information should be read in conjunction with the annual financial statements for the year ended 30 June 2021.

1. Going concern basis
   For the period ended 31 December 2021, the Group recorded a net loss before tax of HK$26,006,000 (six months ended 31 December 2020: HK$12,039,000) and had operating cash outflows of HK$11,643,000 (six months ended 31 December 2020: HK$11,247,000). The Group did not record any revenue during the period and the loss before tax for the period was primarily attributable to the exploration and evaluation (including the Group's share of the joint operations expenses) of the Company's iron ore exploration projects and corporate overhead costs. As at 31 December 2021, the Group's cash and cash equivalents amounted to HK$38,218,000 (30 June 2021: HK$45,667,000).
   On 22 April 2021, Brockman Iron Pty Ltd (a wholly-owned subsidiary of the Company) ('Brockman Iron') and Polaris Metals Pty Ltd ('Polaris') established the Joint Operation. Following the establishment of the Joint Operation, Polaris (or its related party) agreed to provide the Joint Operation with funding by way of a project loan sufficient to allow the Joint Operation to fund the forecast capital costs for development.
   The Joint Operators have agreed to initial development works that will be funded by Polaris with the cost estimated to be circa A$41,000,000 (~HK$237,779,000). The project loan agreement is expected to be executed by the end of March 2022.
   The loans from Polaris of A$10,000,000 have been released from the escrow account pursuant to the Farm- in and Joint Venture ('FJV') Agreement. Under the terms of FJV Agreement these loans are to be repaid from net revenue received by Brockman Iron from the sale of its share of product produced and sold from the joint operation. The repayment of these loans to Polaris must be in priority to all other payments from Net Revenue received by Brockman Iron from the sale of its Percentage Share of Product sold from the Project.
   The Group has taken a number of measures to improve its liquidity position, including, but not limited to, the following:
2. 1. Extending the repayment date of the existing loans of HK$16,136,000 from the substantial shareholder to 31 October 2023. These loans bear interest at 12% per annum.
   2. On 19 September 2018, the Group secured a standby loan facility from its substantial shareholder amounting to HK$10,000,000. If drawn down, the loan will be unsecured, bear interest at 12% per annum and be repayable on 31 October 2023. As at 31 December 2021, the facility of HK$10,000,000 is undrawn.

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onlyuse personal2. For

The directors have reviewed the Group's cash flow projections which cover a period of not less than twelve months from the date of approval of the condensed consolidated financial statements. They are of the opinion that, taking into account the above-mentioned measures, the Group will have sufficient financial resources to satisfy its future working capital requirements and to meet its financial obligations as and when they fall due within the next twelve months from the date of approval of these condensed consolidated financial statements.

The directors believe that the Group can continue to access debt and equity funding to meet medium term working capital requirements and has a history of securing such funding as required in the past to support their belief. In the event that funding of an amount necessary to meet the future budgeted operational and investing activities of the Group is unavailable, the directors would undertake steps to curtail these operating and investment activities. Accordingly, the directors of the Company consider that it is appropriate to prepare the Group's condensed consolidated financial statements on a going concern basis.

Notwithstanding the above, there remains material uncertainty as to whether the Group can raise sufficient funding as outlined above which may cast significant doubt about the Group's ability to continue as a going concern and, therefore whether it will realise its assets and extinguish its liabilities in the normal course of business and at the amounts stated in these condensed consolidated financial statements.

These condensed consolidated financial statements do not include any adjustments relating to the recoverability and classification of the Group's assets or to the amounts and classification of liabilities which might be necessary should the Group not continue as a going concern.

PRINCIPAL ACCOUNTING POLICIES

The accounting policies applied are consistent with those of the annual financial statements for the year ended 30 June 2021, except as described in this condensed consolidated financial information.

Taxes on income in the interim periods are accrued using the tax rate that would be applicable to expected total annual profit or loss.

Changes in accounting policy and disclosures

1. New standards, interpretations and amendments adopted by the Group
   The accounting policies adopted in the preparation of the interim condensed consolidated financial information are consistent with those followed in the preparation of the Group's annual consolidated financial statements for the year ended 30 June 2021, except for the adoption of new standards effective as of 1 July 2021. The Group has not early adopted any standard, interpretation or amendment that has been issued but is not yet effective but, intends to adopt these new and amended standards and interpretations, if applicable, when they become effective.

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