AORERE RESOURCES LIMITED
Interim Accounts
For the six months ended 30 September 2017
AORERE RESOURCES LIMITED
Directory
As at 30 September 2017
Directors Peter Liddle (Chairman)
Chris Castle
Jill Hatchwell
Simon Henderson
Linda Sanders
Registered Office 1232 State Highway 60
Onekaka
Golden Bay
Share Registry Link Market Services
80 Queen Street
Auckland
Auditors BDO
Chartered Accountants House
50 Customhouse Quay
Wellington
Legal Advisors Duncan Cotterill
Chartered Accountants House
50 Customhouse Quay
Wellington
AORERE RESOURCES LIMITED
Statement of Financial Position
As at 30 September 2017
Unaudited Unaudited Audited
30 Sept
2017 30 Sept
2016 31 March 2017
$''000 $''000 $''000
Assets
Other investments 419 316 272
Investment in Chatham Rock Phosphate Ltd 357 389 357
Total non-current assets 776 705 629
Cash and cash equivalents 76 186 56
Trade and other receivables 67 57 115
Broker current accounts 3 - -
Other investments 2 2 2
Prepayments 31 32 12
Current tax assets 1 - -
Total current assets 180 277 185
Total assets 956 982 814
Equity
Share capital 14,342 14,023 14,081
Reserves 135 64 21
Accumulated losses (13,795) (13,264) (13,661)
Total equity attributable to equity holders
of the Company
682
823
441
Total equity 682 823 441
Liabilities
Trade and other payables 196 128 338
Short term advances 43 - -
Total current liabilities 239 128 338
Other financial liabilities 35 31 35
Total non-current liabilities 35 31 35
Total liabilities 274 159 373
Total equity and liabilities 956 982 814
AORERE RESOURCES LIMITED
Statement of Profit or Loss and Other Comprehensive Income
For the six months ended 30 September 2017
Group
Unaudited Unaudited Audited
30 Sept
2017 30 Sept
2016 31 March 2017
$''000 $''000 $''000
Revenue 132 - 130
Interest income on bank deposits 1 1 3
Foreign exchange losses (2) - (7)
Finance income/(expenses)
131
1
126
Administrative expenses (270) (344) (514)
Exploration costs - (172) (492)
Loss on disposal of other investments current - (4) -
Gain on disposal available-for-sale investments - 21 17
Share of loss of equity accounted investee - (23) (55)
Profit/(loss) before income tax
(139)
(521)
(918)
Income tax expense - - -
Profit/(loss) for the year attributable
to shareholders
(139)
(521)
(918)
Other comprehensive income
Items that may be reclassified to profit or loss
Change in fair value of available-for-sale financial assets
119
59
16
Other comprehensive income for the period,
net of tax
119
59
16
Total comprehensive income attributable
to shareholders
(20)
(462)
(902)
Earnings/(loss) per share attributable to
the ordinary equity holders
Basic (loss)/earnings per share (0.011) (0.072) (0.097)
Diluted (loss)/earnings per share (0.011) (0.072) (0.097)
Net tangible assets per share 0.001 0.001 0.001
AORERE RESOURCES LIMITED
Statement of Changes in Equity
For the six months ended 30 September 2017
Group
Share
capital
Share warrant reserve Available for sale fair value reserve
Accum-ulated losses
Total
$''000 $''000 $''000 $''000 $''000
Unaudited
Balance at 1 April 2017 14,081 5 16 (13,661) 441
Profit/(loss) for the period - - - (139) (139)
Other comprehensive income - - 119 - 119
Total recognised income and expense
-
-
119
(139)
(20)
Issue of shares 264 - - - 264
Share issue costs (3) - - - (3)
Transfer on expiry of warrants
-
(5)
-
5
-
Balance at 30 Sept 2017 14,342 - 135 (13,795) 682
Unaudited
Balance at 1 April 2016 13,559 5 - (12,743) 821
Profit/(loss) for the period - - - (521) (521)
Other comprehensive income - - 59 - 59
Total recognised income and expense
-
-
59
(521)
(462)
Issue of shares 474 - - - 474
Share issue costs (10) - - - (10)
Balance at 30 Sept 2016 14,023 5 59 (13,264) 823
Audited
Balance at 1 April 2016 13,559 5 - (12,743) 821
Profit/(loss) for the period - - - (918) (918)
Other comprehensive income - - 16 - 16
Total recognised income and expense
-
-
16
(918)
(902)
Issue of shares 536 - - - 536
Share issue costs (14) - - - (14)
Balance at 31 March 2017 14,081 5 16 (13,661)
441
AORERE RESOURCES LIMITED
Statement of Cash Flows
For the six months ended 30 September 2017
Group
Unaudited Unaudited Audited
30 Sept
2017 30 Sept
2016 31 March 2017
$''000 $''000 $''000
Cash flows from operating activities
Cash received from customers 84 - 160
Interest received 2 3 3
Proceeds from other investments current - 30 -
Tax refund received - 1 1
Cash paid to suppliers (169) (477) (824)
Net cash (used in) operating activities
(83)
(443)
(660)
Cash flows from investing activities
Proceeds from disposal of other investments
non-current
-
71
72
Proceeds to/(from) related parties 30 31 13
Proceeds from term deposit 3 - -
Purchase of other investments non-current (31) - -
Deposit broker current account (3) - -
Reinvested interest term deposit - (3) (3)
Net cash (used in)/from investing activities
(1)
99
82
Cash flows from financing activities
Proceeds from issue of share capital 104 363 432
Deposit from convertible debenture - - 35
Net cash from financing activities
104
363
467
Net increase/(decrease) in cash and cash equivalents
20
19
(111)
Cash and cash equivalents at 1 April 56 167 167
Cash and cash equivalents at end of period
76
186
56
AORERE RESOURCES LIMITED
Statement of Cash Flows
For the six months ended 30 September 2017
Group
Unaudited Unaudited Audited
30 Sept
2017 30 Sept
2016 31 March 2017
$''000 $''000 $''000
Reconciliation of the profit/(loss) for the period with the net cash from
operating activities:
Net profit/(loss) for the period after income tax (139) (521) (918)
Adjustments for:
(Gains) on sale of available-for-sale financial assets - (21) (21)
Non-cash expenses:
Expenses paid in shares 145 101 101
Foreign exchange losses - 5 6
Share of loss of equity accounted investees - 23 55
6 (413) (777)
Change in trade and other receivables 47 (43) (101)
Change in trade and other payables (116) (3) 182
Change in prepayments (19) (20) 1
Change in current tax assets (1) 1 -
Change in other investments current - 35 35
Net cash from operating activities (83) (443) (660)
AORERE RESOURCES LIMITED
Notes to Financial Statements
For the six months ended 30 September 2017
These unaudited condensed financial statements for Aorere Resources Limited
have been prepared in accordance with New Zealand Equivalent to International
Accounting Standard (NZIAS) 34 Interim Financial Reporting, issued by the New
Zealand Institute of Chartered Accountants. The Company is a profit
orientated entity.
The Company is an issuer for the purposes of the New Zealand Financial
Reporting Act 2013 and Financial Markets Conduct Act 2013.
The unaudited condensed interim financial statements of the Company for the
six months ended 30 September 2017 have been prepared using the same
accounting policies and methods of computation as, and should be read in
conjunction with, the financial statements and related notes included in the
Company''s Annual Report for the year ended 31 March 2017.
The same significant judgements, estimates and assumptions included in the
notes to the financial statements in the Company''s Annual Report for the year
ended 31 March 2017 have been applied to these interim statements.
Segment reporting
Segment information is presented in respect of the Group''s business and
geographical segments. For management purposes there is only one operating
segment which is investment.
Geographical segments
The investment segment operates in four principal geographical areas, New
Zealand, Canada, Australia and Other.
In presenting information on the basis of geographical segments, segment
revenue is based on the geographical location of investments. Segment assets
are based on the geological locations of the assets.
Group
Geographical segments
In thousands of dollars New Zealand Canada Other Total
30 September 2017 (unaudited)
Interest revenue 1 - - 1
Other revenue 132 - - 132
Total revenue 133 - - 133
Segment assets 658 288 10 956
Other segment information
Investment in Chatham Rock Phosphate
357
-
-
357
AORERE RESOURCES LIMITED
Notes to Financial Statements
For the six months ended 30 September 2017
Segment Reporting (continued)
In thousands of dollars New Zealand Canada Other Total
30 September 2016 (unaudited)
Interest revenue 1 - - 1
Total revenue 1 - - 1
Segment assets 759 223 - 982
Other segment information
Investment in equity accounted investees
389
-
-
389
31 March 2017 (audited)
Interest revenue 3 - - 3
Other revenue 60 70 - 130
Total revenue 63 70 - 133
Segment assets 630 174 10 814
Other segment information
Investment in Chatham Rock Phosphate
357
-
-
357
Results for announcement to the market for the six months ended 30 September
2017
Financial results
Your directors submit the unaudited financial statements of Aorere Resources
Limited for the six months to 30 September 2017. The trading result for the
period was a loss of $139,000 (2016 - $521,000 loss). A significant
proportion of last year''s loss arose after writing off the costs relating to
the scoping, financing and attempted acquisition of the Nevada gold project.
Operations Report
As at 23 November 2017, our portfolio comprised the following investments.
Portfolio Analysis as at Per share % total
Asian Minerals 248,268 0.02 31.7%
Chatham Rock 408,256 0.03 52.2%
Minor investments 48,187 0.00 6.2%
Akura 9,855 0.00 1.3%
Cash 130,261 0.01 16.6%
Accruals (adjusted for equity settlements) (62,270) (0.00) -8.0%
782,557 0.05 100.0%
Chatham Rock Phosphate
Chatham Rock Phosphate ("CRP") continues to remain the investment that we are
most involved with operationally and it presently represents 52.2% of our
assets. We are also the third largest shareholder in CRP with 4.1% and in
conjunction with AOR and CRP directors hold ~ 11%.
CRP was granted a mining permit in 2013 to develop New Zealand''s only
significant source of environmentally friendly pastoral phosphate fertiliser
and is now preparing for a revised environmental consent application.
CRP''s role is focused on delivering a secure and sustainable local supply of
low-cadmium phosphate that will reduce fertiliser run-off into waterways,
produce healthier soils and shrink fertiliser needs over time.
The resource has an estimated gross value of $5 to $7 billion, representing
one of New Zealand''s most valuable mineral assets and is of huge strategic
significance because phosphate is essential to maintain New Zealand''s high
agricultural productivity. Local and international investors have contributed
more than $37 million to develop the project''s financial viability,
environmental benefits and impacts, technical and logistical requirements,
local and international product uses.
CRP proposes to extract up to 1.5 million tonnes of phosphate nodules from
the top half metre of sand on identified parts of an 820km2 area on the
Chatham Rise, 450km off the west coast of New Zealand, in waters of 400m. The
earlier environmental consenting process has established extraction would
have no material impact on fishing yields or profitability, marine mammals or
seabirds.
In progressing plans to submit a new application, CRP notes that the recently
enacted Resource Legislation Amendment Bill has achieved helpful changes in
the permitting process. CRP continues to interact with iwi, academic,
industry and central government in order to get the message across that our
success will ensure that New Zealand can benefit from an environmentally
superior phosphate source.
In March 2017 CRP listed on the Toronto Stock Exchange to provide a more
useful share-trading platform for overseas shareholders and facilitate the
capital raising needed for the consenting process and beyond. Subsequently,
at the request of its European shareholder base, CRP is also quoted (?) on
the Frankfurt Stock Exchange.
As earlier announced CRP is also seeking to own other sustainable rock
phosphate sources, to move from being a single project company.
Asian Mineral Resources
Our investment in Asian Mineral Resources (AMR) dates back to 2000.
AMR is TSX.V listed, was profitable in cash flow terms, employed until
recently over 500 people and was said to be the largest tax payer in Hanoi.
It came a long way from being effectively a privately owned exploration
company with little cash and few prospects of finding any. Aorere was the
catalyst that made the difference, funding the company for several years,
introducing substantial investors, and arranging the TSX.V listing.
AMR mined the Ban Phuc nickel deposit from 2013 to 2016 at an accelerated
production rate and exhausted the high grade massive sulphide deposit. The
surrounding disseminated sulphide deposit remains uneconomic to mine so, a
decision was made last year to transition the operation into care and
maintenance. Management has secured the operational assets and established
on-site detailed care and maintenance compliance and reporting protocols and
processes.
AMR has an active exploration programme which includes field mapping,
trenching and soil sampling aimed at ranking and prioritising its 26 initial
exploration prospects.
Further design-planning and analysis of the Ban Phuc disseminated resource
will continue.
Recently AMR has appointed a new chief executive, Duncan Blount, and the AMR
board has been significantly restructured with Chris Castle remaining a
director along with representatives of two major shareholders.
New technology related investment
Following the successful recent financing we have made a modest investment in
a TSX.V listed lithium company that we believe has promising prospectivity.
The Future
We now hold stakes in three companies that still have forward momentum and
are very focused on widening the portfolio if appropriate investment
opportunities are identified.
Chris Castle Peter
Liddle
Managing director
Chairman
26 November 2017
Aorere Resources Limited
Results for announcement to the market
Reporting Period Six months to 30 September 2017
Previous Reporting Period Six months to 30 September 2016
Amount NZ(000s) Percentage change
Revenue from ordinary activities $132, $Nil N/A
Profit (loss) from ordinary activities after tax attributable to security
holder $(139), $(521) 73%
Net profit (loss) attributable to security holders $(139), $(521) 73%
Interim/Final Dividend Amount per security Imputed amount per security
It is not proposed to pay a dividend for the reporting period.
Record Date Not Applicable
Dividend Payment Date Not Applicable
Comments: Aorere Resources has not gained or lost control over any
entities during the period.
Aorere Resources does not operate any dividend or distribution reinvestment
plan.
Net Tangible Assets per security
NZ cents per share Current half year Corresponding previous half
year
Ordinary shares 0.001 0.001
Earnings per security
NZ cents per share Current half year Corresponding previous half
year
Basic Earnings per shares (0.011) (0.072)
Diluted Earnings per share (0.011) (0.072)
End CA:00311032 For:AOR Type:HALFYR Time:2017-11-28 10:28:11