Element 25 : Half Year Accounts

ELEMENT 25 LIMITED

ABN 46 119 711 929 INTERIM FINANCIAL REPORT

FOR THE HALF YEAR ENDED

31 DECEMBER 2018

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 2018 and any public announcements made by Element 25 Limited during the interim reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001.

Contents	Page
DIRECTORS' REPORT	3
AUDITOR'S INDEPENDENCE DECLARATION	4
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME	5
CONSOLIDATED STATEMENT OF FINANCIAL POSITION	6
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY	7
CONSOLIDATED STATEMENT OF CASH FLOWS	8
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS	9
DIRECTORS' DECLARATION	14
INDEPENDENT AUDITOR'S REVIEW REPORT TO THE MEMBERS	15

DIRECTORS' REPORT

Your directors submit their report on the consolidated entity consisting of Element 25 Limited and the entities it controlled at the end of, or during, the half-year ended 31 December 2018.

DIRECTORS

The names of the directors who held office during or since the end of the half-year are: Seamus Cornelius

Justin Brown John Ribbons

REVIEW AND RESULTS OF OPERATIONS

A summary of revenues and loss after tax for the half-year is set out below:

2018

Revenues	Results
$	$
Consolidated entity	1,034,521	(1,245,920)

During the half-year ended 31 December 2018, the Company progressed the Pre-Feasibility Study of the Butcherbird High Purity Manganese Project where the Company intends to produce high purity manganese including manganese sulphate for lithium ion batteries and Electrolytic Manganese Metal.

All key work streams are progressing with the view to completing the Pre-Feasibility Study within the forecast time frame.

During the period the Company sold 100% of the Holleton Project to Ramelius Resources Ltd's (ASX: RMS) wholly owned subsidiary Edna May Operations Pty Ltd (EMO). The Company received $1M in cash and a 1% NSR on all future production from the Holleton Project.

AUDITOR'S INDEPENDENCE DECLARATION

A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001 is set out on page 4.

This report is made in accordance with a resolution of directors.

Justin Brown

Executive Director Perth, 12 March 2019

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE

INCOME

FOR THE HALF-YEAR ENDED 31 DECEMBER 2018

Half-year

2018	2017
$	$
REVENUE AND OTHER INCOME
Interest received	22,150	37,089
Net gain on sale of mining interests	1,000,000	160,000
Fair value gains on financial assets	12,371	-
EXPENDITURE
Administration expenses	(248,916)	(167,538)
Depreciation expense	(2,070)	-
Exploration expenditure	(1,536,818)	(870,028)
Salaries and employee benefits expense	(236,155)	(156,539)
Secretarial and share registry expenses	(111,082)	(70,397)
Fair value losses on financial assets	-	(31,842)
Share-based payments expense	(145,400)	(165,060)
LOSS BEFORE INCOME TAX	(1,245,920)	(1,264,315)
Income tax expense	-	-
LOSS FOR THE HALF-YEAR AFTER TAX	(1,245,920)	(1,264,315)
OTHER COMPREHENSIVE INCOME
Items that may be reclassified subsequently to profit or loss
Exchange differences on translation of foreign operations	(10,600)	8,748
Other comprehensive income for the period, net of tax	(10,600)	8,748
TOTAL COMPREHENSIVE LOSS FOR THE PERIOD
ATTRIBUTABLE TO OWNERS OF ELEMENT 25 LIMITED	(1,256,520)	(1,255,567)
Basic and diluted loss per share (cents)	(1.5)	(1.5)

The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes.