Sky Metals : FY22 Half Year Financial Statements

For personal use only

SKY METALS LIMITED

and its controlled entities

A.B.N. 46 098 952 035

INTERIM FINANCIAL REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2021

For personal use only

SKY METALS LIMITED

AND ITS CONTROLLED ENTITIES

CONTENTS

Directors' Report

Lead Auditor's Independence Declaration

Condensed Consolidated Interim Statement of Profit or Loss and Other Comprehensive Income

Condensed Consolidated Interim Statement of Financial Position Condensed Consolidated Interim Statement of Changes in Equity Condensed Consolidated Interim Statement of Cash Flows Notes to the Condensed Consolidated Interim Financial Statements Directors' Declaration

Independent Auditor's Review Report to the Members of Sky Metals Limited Corporate Directory

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SKY METALS LIMITED

AND ITS CONTROLLED ENTITIES

DIRECTORS' REPORT

For personal use only

The Directors of Sky Metals Limited (the 'Company' or 'Sky') present their report together with the condensed consolidated interim financial report and the auditor's review report thereon for the half-year ended 31 December 2021.

Directors

The names and particulars of the Directors of the Company at any time during or since the end of the half-year are:

Norman Alfred Seckold, Executive Chairman

Director since 4 December 2001

Norman Seckold graduated with a Bachelor of Economics degree from the University of Sydney in 1970. He has spent more than 40 years in the full time management of natural resource companies, both in Australia and overseas, including the role of Chairman for a number of publicly listed companies.

Mr Seckold is currently Chairman of Alpha HPA Limited, a minerals exploration and development company operating in Australia and Indonesia, Santana Minerals Limited, a precious metals exploration company, and Deputy Chairman and Executive Director of Nickel Mines Limited a nickel mining and development company operating in Indonesia.

Rimas Kairaitis

Director since 20 June 2019

Mr Kairaitis is a geologist and mining industry executive with over 25 years' experience in minerals exploration, resource development and mining company management in gold, base metals and industrial minerals. From 2006-2016 Mr Kairaitis was the founding Managing Director and CEO of Aurelia Metals Limited (ASX: AMI), which he steered from a junior exploration company to a profitable NSW based gold and base metals producer.

Mr Kairaitis is also the Managing Director of process technology company Alpha HPA Limited (ASX: A4N).

Richard Grant Manners Hill

Director since 20 June 2019

Mr Hill is a geologist and solicitor with over 25 years' experience in the resources sector. He has performed roles as commercial manager and geologist for several mid-cap Australian mining companies and as Director and Chairman for a series of successful ASX-listed companies including a founding Director for Aurelia Metals Limited (ASX:AMI) and Chairman of Genesis Minerals Ltd. He is currently the Chairman of New World Resources Limited (ASX: NWC), and Chairman of Accelerate Resources Limited. In addition to his corporate, commercial and fund raising roles, Mr Hill has practical geological experience as a mine based and exploration geologist in a range of commodities worldwide.

Company Secretary

Richard Willson

Company Secretary since 31 July 2019

Richard is an experienced, Non-Executive Director, Company Secretary and CFO with more than 20 years' experience predominantly within the resources, technology and agricultural sectors for both publicly listed and private companies.

Richard has a Bachelor of Accounting from the University of South Australia, is a Fellow of CPA Australia, and a Fellow of the Australian Institute of Company Directors. He is a Non-Executive Director of Titomic Limited (ASX:TTT), AusTin Mining Limited (ASX:ANW), Thomson Resources Limited (ASX:TMZ), PNX Metals Limited (ASX:PNX), Lanyon Investment Company Limited (ASX:LAN), and Unity Housing Company Ltd; and Company Secretary of a number of ASX Listed Companies.

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SKY METALS LIMITED

AND ITS CONTROLLED ENTITIES

DIRECTORS' REPORT

For personal use only

Operating and financial review

The activities of Sky Metals Limited and its controlled entities (the 'Group') during the half-year ended 31 December 2021 include the following:

• Drilling programs at the 3KEL Target at the Doradilla Project.
• Drilling program at the Hume Target at the Cullarin Project.
• Produced a JORC-2012 mineral resource estimate at the Galwadgere Target and exercised the right to purchase a 100% interest in the Galwadgere Project.
• Drilling program at the Caledonian Project.

Corporate Activities

• On 5 November 2021, the Company completed a successful capital raising of $5.6 million from sophisticated and institutional investors through the issue of 62,882,355 ordinary shares.

Financial Position and Performance

• The Group recognised a loss for the half year period ended 31 December 2021 of $1,108,776 (31 December 2020: Loss $1,013,082). The net assets of the Group at 31 December 2021 were $21,285,503 (30 June 2021: $16,643,125) including cash of $6,363,768 (30 June 2021: $3,528,190).
• During the period the Group used a total of $2,300,083 of cash in operating activities and exploration and evaluation activities.

Subsequent Events

On 17 February 2022, 5 million Performance Rights expiring 17 December 2024 were issued to the Company's employees.

No other matters or circumstances have arisen since the end of the half-year, which significantly affected or may significantly affect the operations of the Group, the results of those operations, or the state of affairs of the Group in future financial years.

Signed at Orange this 11th day of March 2022 in accordance with a resolution of the Board of Directors:

Norman A. Seckold

Chairman

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For personal use only

Lead Auditor's Independence Declaration under Section 307C of the Corporations Act 2001

To the Directors of Sky Metals Limited

I declare that, to the best of my knowledge and belief, in relation to the review of Sky Metals Limited for the half-year ended 31 December 2021 there have been:

1. no contraventions of the auditor independence requirements as set out in the Corporations Act 2001 in relation to the review; and
2. no contraventions of any applicable code of professional conduct in relation to the review.

KPMG	Adam Twemlow
	Partner
	Gold Coast
	11th March 2022

KPMG, an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. Liability limited by a scheme approved under Professional Standards Legislation.

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