Coda Minerals : Half Year Financial Report 31 December 2021

For personal use only

Coda Minerals Ltd.

ABN: 49 625 763 957

Half Year Financial Report 31 December 2021

Half-Year Financial Report

CODA MINERALS LIMITED ACN 625 763 957 INTERIM FINANCIAL STATEMENTS

For personal use only

DIRECTORS' REPORT

For the period ended 31 December 2021

The directors present their report together with the financial statements of Coda Minerals Ltd ('the Company' or 'Coda') for the half-year ended 31 December 2021 and the Auditor's Review Report thereon. In order to comply with the provisions of the Corporations Act 2001, the Directors' report as follows:

1. DIRECTORS

The directors of the Company at any time during or since the end of the financial period were:

Name & Qualifications	Period of Directorship
Mr Keith F Jones	Director and Chairman since 26 April
BBus, FCA, FAICD	2018
Chairman
Mr Andrew Marshall	Director since 19 July 2019
I Eng(UK), MAICD
Non-Executive Director
Mr Colin Moorhead	Director since 21 August 2019
BSc (Hons), FAusIMM (CP), FSEG, GAICD
Non-Executive Director
Mr Paul Hallam	Director since 21 August 2019
BE(Hons)Mining, FAICD, FAusIMM
Non-Executive Director
Mr Christopher Stevens	Director since 26 April 2018
BA (Hons), MA (Oxon), MSc, GAICD, FAusIMM
Chief Executive Officer and Executive Director
Mr Zhu Changjiang	Appointed Director 22 May 2020
Bachelor of Mining Mechanical Engineering	Resigned 31 August 2021
Non-Executive Director

1. PRINCIPAL ACTIVITIES
   The principal activities of the Company during the financial year were the progression of exploration and evaluation activities associated with the Elizabeth Creek Copper Cobalt Project and Cameron River Project, exploration for and evaluation of projects and potential joint ventures with other mining companies to explore for minerals.
2. REVIEW OF OPERATIONS Overview and strategy
   Coda's business strategy is to build long term shareholder value through the exploration and commercialisation of copper, gold, cobalt and other base and battery minerals in the world's premier mining jurisdictions.
   Coda's primary focus is on exploration and development opportunities at its Elizabeth Creek Copper Project in South Australia. The Company has a dual strategy for success at Elizabeth Creek. Firstly, it is working to further define and extend known Zambian-stylecopper-cobalt resources across multiple prospects and delivered a maiden resource at its flagship Emmie Bluff Copper-Cobalt deposit in December 2021. Secondly, it is implementing a substantial drill programme at Emmie Bluff Deeps to rapidly and efficiently evaluate the potential for a Tier-1 IOCG system following a major mineralised intercept in June 2021.
   While the Company remains resolutely focused on work at Elizabeth Creek, particularly the preliminary scoping studies following the delivery of the maiden resource at Emmie Bluff and the exciting IOCG work, the opportunity to acquire Cameron River provided Coda with additional highly prospective exposure to copper-gold exploration assets. This was a logical and complementary addition to Coda's existing portfolio of copper projects in South Australia that will open up a second platform for discovery, exploration success and, ultimately, resource growth for Coda in a Tier-1 copper province. With numerous shallow, well-defined targets, Cameron River offers the potential for rapid, low-cost exploration without compromising the pace of ongoing activity at the flagship Emmie Bluff Project or upcoming IOCG exploration at Elizabeth Creek.
   Key events for the half year ended 31 December 2021:
3. • Standout maiden Indicated and Inferred Mineral Resource Estimate (MRE) of 43Mt at 1.83% CuEq delivered for the Emmie Bluff Zambian-stylecopper-cobalt deposit. The MRE, which contains approximately 560kt of copper, 20kt of cobalt, 15.5Moz of silver ad 66kt of zinc (800kt CuEq), provides strong support for the go-forward case at Emmie Bluff and Elizabeth Creek more broadly.
   • Exceptional copper-gold mineralisation intersected across numerous holes at the emerging Emmie Bluff Deeps IOCG deposit, located 16km south-west of the world-class Oak Dam discovery (BHP) and ~400m south-west of the Emmie Bluff deposit. The data being accumulated from the drilling is beginning to reveal the presence of multiple stacked lodes and a high-grade,bornite-dominated core surrounded by classic IOCG copper sulphide zonation. The latest drilling has continued to extend the mineralisation laterally across hundreds of metres in multiple directions.

1

CODA MINERALS LIMITED ACN 625 763 957 INTERIM FINANCIAL STATEMENTS

ACN 625 763 957 INTERIM FINANCIAL STATEMENTS

CODA MINERALS LIMITED

2

K F Jones Director

Signed in accordance with a resolution of Directors at Perth, WA on 28 February 2022.

A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001 is set out on page 3.

7. AUDITOR INDEPENDENCE

6. EVENTS SUBSEQUENT TO REPORTING DATE

The Directors believe that, based on current conditions and performance assumptions, that Coda is sufficiently funded to meet its anticipated near-termfunding needs, including required expenditure under the Elizabeth Creek Copper Cobalt Project and the Cameron River Copper-GoldProject over the next 12 months. Notwithstanding this, the Board may seek additional capital in the form of a further Equity Capital Raising if required in furtherance of Coda's business objectives.

The Directors believe that Coda will continue as a going concern, and as a result the financial information has been prepared on a going concern basis, which contemplates the continuity of normal business activity and the realisation of assets and the settlement of liabilities in the normal course of business.

5. GOING CONCERN

For the half year period ended on 31 December 2021, Coda recorded a loss of $7,523,230 (31 December 2020: $2,497,886)

and experienced net operating cash outflows of $7,785,596 (31 December 2020: $2,218,864).

As at 31 December 2021, Coda had cash and cash equivalents of $13,929,529 (30 June 21: $21,787,110) and net current

assets of $13,414,774 (30 June 21: $22,983,832).

4. FINANCIAL POSITION

COVID-19

The ongoing COVID-19pandemic affecting Australia and the world has had a limited impact on Coda's operations with restrictions on interstate travel and challenges associated with maintaining government recommended social distancing practices being the key areas the Company has had to consider. Although these factors have the potential to impact Coda's ability to undertake fieldwork safely and cost effectively, the impact to date has been limited during the current field programme. The Company has retained experienced, South Australia based geologists and field staff who are not required to cross state borders. The Company's COVID-19management plan has been established to address the ongoing potential future impact. The Company will continue to monitor and manage the impact on its operations.

Material business risks

The material business risks faced by Coda are considered below:

onlyuse

personal On the 9th of February 2022, Coda announced an off-markettakeover offer to acquire Torrens Mining Limited ('Torrens") with 0.23 Coda shares offered for every 1 Torrens share held. No matters or circumstances have arisen since the end of

the financial year. For

the end of the wet season in North Queensland.

Multiple potential new base and precious metal prospects identified by a desktop review of historical geophysics at the Cameron River Project in North Queensland. Extensive preparations completed for a maiden drill programme to test the 2km long Cooper Weed/Rebound geochemical anomaly at Cameron River. Drilling is scheduled to commence following

•

Reverse Circulation (RC) drill programme at MG14 North encountered mineralisation to the east of the existing JORC compliant MG14 Mineral Resource, opening up the potential for future expansion of the deposit.

•

DIRECTORS' REPORT

For the period ended 31 December 2021

For personal use only

	Deloitte Touche Tohmatsu
	ABN 74 490 121 060
	Tower 2
	Brookfield Place
	123 St Georges Terrace
	Perth WA 6000
	GPO Box A46
	Perth WA 6837 Australia
	Tel: [phone]
The Board of Directors	Fax: [phone]
Coda Minerals Limited	www.deloitte.com.au
6 Altona Street
West Perth WA 6005

28 February 2022

Dear Board Members

Auditor's Independence Declaration to Coda Minerals Limited

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

As lead audit partner for the review of the financial statements of Coda Minerals Limited for the half year ended 31 December 2021, I declare that to the best of my knowledge and belief, there have been no contraventions of:

1. the auditor independence requirements of the Corporations Act 2001 in relation to the review; and
2. any applicable code of professional conduct in relation to the review.

Yours sincerely

DELOITTE TOUCHE TOHMATSU

Dave Newman

Partner

Chartered Accountants

Liability limited by a scheme approved under Professional Standards Legislation.

Member of Deloitte Asia Pacific Limited and the Deloitte organisation.

only

Independent Auditor's Review Report to the members of Coda Minerals Limited

Conclusion

Deloitte Touche Tohmatsu ABN 74 490 121 060

Tower 2

Brookfield Place

123 St Georges Terrace

Perth WA 6000

GPO Box A46

Perth WA 6837 Australia

Tel: [phone]

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

For personal use

We have reviewed the half-year financial report of Coda Minerals Limited (the "Company"), which comprises the condensed statement of financial position as at 31 December 2021, and the condensed statement of profit or loss and other comprehensive income, the condensed statement of cash flows and the condensed statement of changes in equity for the half-year ended on that date, notes comprising a summary of significant accounting policies and other explanatory information, and the directors' declaration as set out on pages 6 to 18.

Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the half-year financial report of the Company is not in accordance with the Corporations Act 2001, including:

• Giving a true and fair view of the Company's financial position as at 31 December 2021 and of its performance for the half-year ended on that date; and
• Complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001.

Basis for Conclusion

We conducted our review in accordance with ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity. Our responsibilities are further described in the Auditor's Responsibilities for the Review of the Half-yearFinancial Report section of our report. We are independent of the Company in accordance with the ethical requirements of the Accounting Professional and Ethical Standards Board's APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code) that are relevant to our audit of the annual financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.

We confirm that the independence declaration required by the Corporations Act 2001, which has been given to the directors of the Company, would be in the same terms if given to the directors as at the time of this auditor's review report.

Directors' Responsibilities for the Half-year Financial Report

The directors of the Company are responsible for the preparation of the half-year financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the half-year financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error.

Auditor's Responsibilities for the Review of the Half-year Financial Report

Our responsibility is to express a conclusion on the half-year financial report based on our review. ASRE 2410 requires us to conclude whether we have become aware of any matter that makes us believe that the half-year financial report is not in accordance with the Corporations Act 2001 including giving a true and fair view of the Company's financial position as at 31 December 2021 and its performance for the half-year ended on that date, and complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001.

Liability limited by a scheme approved under Professional Standards Legislation.

Member of Deloitte Asia Pacific Limited and the Deloitte organisation.