Hannans : Half Year Financial Report

For personal use only

LTD

ABN 52 099 862 129

Financial Report for the half-year ended 31 December 2021

www.hannans.com

CONTENTS

For personal use only

	Page
Corporate Directory........................................................................................................................................................................................................................................................................	1
Directors' Report...............................................................................................................................................................................................................................................................................	2
Directors' Declaration.....................................................................................................................................................................................................................................................................	5
Independence Declaration to the Directors of Hannans Ltd...................................................................................................................................................................................	6
Independent Review Report to the Members of Hannans Ltd..............................................................................................................................................................................	7
Consolidated Statement of Comprehensive Income...................................................................................................................................................................................................	9
Consolidated Statement of Financial Position...............................................................................................................................................................................................................	10
Consolidated Statement of Changes in Equity..............................................................................................................................................................................................................	11
Consolidated Statement of Cash Flows.............................................................................................................................................................................................................................	12
Notes to the Consolidated Financial Statements.........................................................................................................................................................................................................	13

CORPORATE DIRECTORY

Board of Directors

Non-Executive Chairman	Mr Jonathan Murray	Company Secretary	Mr Ian Gregory
Executive Director	Mr Damian Hicks
Non-Executive Director	Mr Markus Bachmann
Non-Executive Director	Mr Clay Gordon
Non-Executive Director	Ms Amanda Scott
Principal Office		Registered Office
Level 12, 197 St Georges Terrace, Perth, Western Australia 6000	Level 12, 197 St Georges, Terrace Perth, Western Australia 6000
Postal Address		Social Network Sites
PO Box 1227,		Twitter | @Hannans_Ltd
West Perth, Western Australia, 6872	LinkedIn | Hannans Ltd
Contact Details		Share Registry
[phone] (Telephone)		Computershare
[e-mail](Email)		Level 11, 172 St George's Terrace
www.hannans.com(Website)		Perth, Western Australia, 6000
		1300 787 272 (Telephone)
ABN 52 099 862 129		www.computershare.com.au (Website)
Auditors		Lawyers
Ernst & Young		Steinepreis Paganin
Ernst & Young Building		Level 4, The Read Buildings
11 Mounts Bay Road,		16 Milligan Street, Perth, Western Australia, 6000
Perth, Western Australia, 6000

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DIRECTORS' REPORT

The Directors of Hannans Ltd (Hannans, Group or Company) submit the financial report for the half-year ended 31 December 2021. In order to comply with the provisions of the Corporations Act 2001, the Directors report as follows:

The names of the Directors of the Company who have held office during and since the end of the half-year are:

Non-Executive Chairman	Non-Executive Directors
Mr Jonathan Murray	Mr Markus Bachmann
	Mr Clay Gordon
Executive Director	Ms Amanda Scott
Mr Damian Hicks

The Directors held their position throughout the entire half-year period and up to the date of this report unless stated otherwise.

Principal activities

The principal activity of the Group during the half-year period was exploration and evaluation of mineral interests.

Results

The consolidated net loss of the Group for the half-year period after income tax expense was $1,141,160 (Dec 2020: loss $907,275).

Review of operations

Lithium-ion battery (LiB) recycling

Hannans signed a Memorandum of Understanding (MoU) with Critical Metals Ltd (Critical) and LIB Recycling Pty Ltd (a wholly owned subsidiary of Critical) to commercialise a lithium battery recycling technology in Norway, Sweden, Denmark, and Finland (Nordics). All conditions precedent to the MOU were satisfied, including approval by the Critical Board and shareholders, approval by the Hannans Board and shareholders, and completion of a $5.5 Million capital raising by Hannans. Hannans' largest shareholder Neometals Limited committed $1.8 Million to the rights issue to maintain their 33% equity holding.

On 1 February 2022, Hannans executed a Heads of Agreement with Greenhouse Investments Ltd providing Hannans with right to expand its lithium battery recycling commercialisation activities into the United Kingdom, Ireland, Italy, and the Balkans. Refer to the subsequent events note for more information.

Hannans' focus is now turned to securing LIB feedstock agreements with Nordic based companies requiring a recycling solution for scrap and end-of-life lithium batteries.

Mineral Exploration

Fraser Range

The Fraser Range nickel-copper project is located 100km east of Norseman, in Western Australia.

All tenements within the Project contain host rocks/stratigraphy that are considered prospective for nickel-copper sulphide mineralisation related to mafic-ultramafic intrusions.

Hannans secured additional tenure within the Fraser Range by lodging applications for exploration licenses (ELA63/2143 and E28/3167) over ground that was relinquished by an unrelated third party.

Activity focussed on a review of historic data and exploration. Acquisition of historic airborne EM data and surface EM surveying is planned to cover several areas testing for bedrock conductors that may indicate the presence of buried massive nickel-copper sulphides. No exploration was completed by Hannans on joint venture tenement E63/1772.

Moogie Gold & Nickel-Copper Project

The Moogie Project is located approximately 260km north-west of Meekatharra and 270km east of Carnarvon, Western Australia.

The Project is located within the Gascoyne Province proximal to the margin with the Yilgarn and Pilbara Cratons. Such collision belts at the margin of cratons are known to host deep crustal-scale structures, favourable target sites for mineralisation. The Project hosts a significant strike length of the Cardilya Shear Zone, identified as such a deep-seated structure.

An airborne electromagnetic (EM) survey (refer ASX release dated 2 September 2021) was completed in late January 2022, subsequent to the reporting period. The survey covered the priority targets at Breccia, Mission Bore, Minni Ritchi and Ghallangee prospects . Final results are pending.

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Forrestania Nickel Project

The Forrestania Nickel Project ("FNP") is located approximately 120km south of Southern Cross, Western Australia.

The world-class nickel sulphide endowment at Forrestania includes four high-grade mines with nickel sulphide mineralisation persisting beyond 1 km depth. All the mineralised ultramafic belts that host the mines, resources, and prospects at Forrestania are represented within the Hannans ground package.

Four diamond drill holes were completed in July to test separate geophysical and geological targets within the Western and Mid- Western Ultramafic sequences (Refer ASX release dated 20 April 2021). All holes intersected iron sulphides of pyrrhotite-pyrite at the expected depths of the target horizons. Based upon geological inspection, the targets intersected were not expected to contain significant nickel grades.

A systematic process of generating and testing targets continues. The next phase of field activities is planned to include ground EM over ultramafic units that are fertile for nickel sulphide mineralisation and soil geochemistry utilising the LabWest/CSIRO UltraFine+™ soil analysis technique.

Forrestania Gold Project

Hannans joint venture partner at the Forrestania Gold Project (FGP) continued to deliver encouraging gold exploration results. Hannans is free-carried at the FGP which means shareholders retain a 20% interest in the gold rights at Forrestania without the need to fund exploration costs.

Southern Cross Nickel and Gold Project

Hannans elected not to exercise the option to acquire an interest the Project. The project vendor and Hannans mutually agreed to terminate the option agreement, with both parties relieved of all further obligations.

Corporate

Capital raising

Hannans completed a rights issue that raised $5.5 million at an issue price of 2.5 cents per share.

Hannans hold 687,594 ordinary shares in ASX listed Errawarra Resources Ltd, 50,000 ordinary shares in NickelX Limited, and 575,000 ordinary shares in unlisted Critical Metals Ltd (last capital raising price 40c in April 2021).

Governance

Annual General Meeting

All resolutions put to shareholders were carried on a poll. No votes were cast against the any of the resolutions put to shareholders.

Health & Safety

No accidents or lost time injuries occurred during the period to Hannans employees and or contractors.

Litigation

Hannans in not a party to any litigation. Hannans received a letter during the period alleging a breach of a confidentiality agreement.

Subsequent events

The following matters or circumstances have arisen since 31 December 2021 that may significantly affect, the operations of the consolidated entity, the results of those operations, or the state of affairs of the consolidated entity in future financial years:

1. On 1 February 2022, Hannans executed a Heads of Agreement with Greenhouse Investments Ltd providing the Company with right to expand its lithium battery recycling commercialisation activities into the United Kingdom, Ireland, Italy, and the Balkans. As part of the re-compliance transaction, the Company will seek shareholders' approval for a consolidation of capital on a 1.2:1 basis at a General Meeting. Hannans also proposes undertaking a $2.5 million capital raising (with oversubscriptions available for an additional $1 million) at a price of 3.5 cents per share to fund its expansion plans and to meet ASX conditions for re-complying with Chapters 1 and 2 of the Listing Rules.

Auditor's independence declaration

The auditor's independence declaration is included on page 6 and forms part of the Directors' report for the six months ended 31 December 2021.

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Signed in accordance with a resolution of directors.

On behalf of the Directors

Damian Hicks

Executive Director

11th of March 2022

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