5 Mar 2021 07:00
5 March 2021
Red Emperor Resources NL
Half Year Report for the Six Months Ended 31 December 2020
The Board of Red Emperor Resources NL (ASX/AIM: RMP) ("RMP", "Red Emperor" or the "Company") is pleased to announce the Company's unaudited consolidated interim results for the 6 months to 31 December 2020.
Please see below extracts from the Company's Half Year Report for the period ended 31 December 2020, being the:
- Directors' Report
- Consolidated Statement of Profit or Loss and Other Comprehensive Income
- Consolidated Statement of Financial Position
- Consolidated Statement of Changes in Equity
- Consolidated Statement of Cash Flows
A copy of the full Half Year Report is available on the Company's website - www.redemperorresources.com
For further information, please visit www.redemperorresources.com or contact:
Red Emperor Resources NL | +61 8 9212 0102 |
Greg Bandy |
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Strand Hanson Limited (Nominated Adviser) | +44 (0) 20 7409 3494 |
James Harris |
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Brandon Hill Capital (UK Broker) | +44 (0) 203 463 5010 |
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708 Capital Pty Ltd (Australian Broker) | +61 (0) 2 9112 2500 |
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The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014.
Directors' Report
The Directors are pleased to present their report for Red Emperor Resources NL ("Red Emperor" or the "Company") and its subsidiaries (the "Group") for the half-year ended 31 December 2020 (the "Period").
DIRECTORS
The persons who were directors of Red Emperor during the half-year and up to the date of this report are:
· Greg Bandy (Managing Director)
· Aaron Bertolatti (Director & Company Secretary)
· Jason Bontempo (Non-Executive Director)
REVIEW OF OPERATIONS
Corporate
During the reporting period, Red Emperor continued to evaluate potential deal opportunities, primarily in the global oil and gas sector. While mainly focused on exploration projects, the Board has continued to be very mindful of protecting the Company's balance sheet and by extension, shareholder value.
There were also a number of potential projects considered during the period in the wider natural resources sector outside of oil and gas cognisant that pursuant to AIM Rule 15, the Company is required to make an acquisition, or acquisitions, which constitute(s) a reverse takeover under AIM Rule 14, or alternatively seek re-admission to trading on AIM as an investing company pursuant to AIM Rule 8 (either being a "Re-admission Transaction"), either of which would require, inter alia, the preparation and publication of an AIM admission document and a full re-admission process. If a Re-admission Transaction is not completed by 20 July 2021 admission to trading on AIM of the Company's ordinary shares will be cancelled pursuant to AIM Rule 41.
The Company has recently made an application to ASX in respect of a proposed transaction under ASX Listing Rule 11.1, which is under consideration, and the Company's ordinary shares remain suspended from trading on both ASX and AIM.
SIGNIFICANT EVENTS AFTER THE REPORTING DATE
There have been no significant events subsequent to the end of the reporting period to the date of this report which significantly affect the operations of the Group, the results of those operations or the state of affairs of the Group in future reporting periods.
AUDITOR'S INDEPENDENCE DECLARATION
Section 307C of the Corporations Act 2001 requires the Company's auditors to provide the Directors of the Company with an Independence Declaration in relation to their review of the interim financial report. This Independence Declaration is set out on page 3 of the full Half Year Report and forms part of this Directors' report for the half-year ended 31 December 2020.
This report is signed in accordance with a resolution of the Board of Directors made pursuant to section 306(3) of the Corporations Act 2001.
Signed on behalf of the board in accordance with a resolution of the Directors.
Greg Bandy
Managing Director
Perth, Western Australia
5 March 2021
Consolidated Statement of Profit or Loss and Other Comprehensive Income
for the half-year ended 31 December 2020
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| 31-Dec-20 | 31-Dec-19 |
$ | $ | ||
Continuing Operations |
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Interest received |
| 12,520 | 13,412 |
Other income |
| 40,009 | - |
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Employee and director benefits expense |
| (124,645) | (136,706) |
Professional and consultants |
| (112,376) | (114,124) |
ASX and AIM and share registry fees |
| (68,115) | (86,550) |
Travel expenditure |
| (4,801) | (7,493) |
Exploration expenditure written off |
| (12,588) | (93,999) |
Amortisation/depreciation expense |
| (23,744) | - |
Unrealised foreign exchange (loss)/gain |
| (9,859) | 1,154 |
Other expenses |
| (62,280) | (73,710) |
Loss before income tax |
| (365,879) | (498,016) |
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Income tax expense |
| - | - |
Loss after Income Tax |
| (365,879) | (498,016) |
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Other comprehensive income/(loss) |
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Items that may be reclassified to profit or loss |
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Other comprehensive income |
| - | 54 |
Other comprehensive income/(loss) for the period net of tax |
| - | 54 |
Total comprehensive loss for the period |
| (365,879) | (497,962) |
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Loss per share for the period attributable to the members of Red Emperor Resources NL | |||
Basic and diluted loss per share (cents) |
| (0.07) | (0.09) |
The above Consolidated Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with the accompanying notes in the full Half Year Report.
Consolidated Statement of Financial Position
as at 31 December 2020
| Note | 31-Dec-20 | 30-Jun-20 |
| $ | $ | |
Current Assets |
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Cash and cash equivalents |
| 4,225,863 | 4,603,010 |
Trade and other receivables |
| 26,626 | 28,562 |
Total Current Assets |
| 4,252,489 | 4,631,572 |
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Non-Current Assets |
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Right of use assets | 3(a) | 118,718 | - |
Deferred exploration and evaluation expenditure |
| - | - |
Total Non-Current Assets |
| 118,718 | - |
Total Assets |
| 4,371,207 | 4,631,572 |
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Current Liabilities |
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Trade and other payables |
| 39,601 | 53,782 |
Lease liabilities | 3(b) | 70,620 | - |
Total Current Liabilities |
| 110,221 | 53,782 |
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Non-Current Liabilities |
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Lease liabilities | 3(b) | 49,075 | - |
Total Non-Current Liabilities |
| 49,075 | - |
Total Liabilities |
| 159,296 | 53,782 |
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Net Assets |
| 4,211,911 | 4,577,790 |
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Equity |
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Issued capital | 4(a) | 61,811,451 | 61,811,451 |
Reserves | 5 | 5,270,653 | 5,270,653 |
Accumulated losses | 6 | (62,870,193) | (62,504,314) |
Total Equity |
| 4,211,911 | 4,577,790 |
The above Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes in the full Half Year Report.
Consolidated Statement of Changes in Equity
for the half-year ended 31 December 2020
| Issued capital | Accumulated losses | Foreign exchange translation reserve | Share based payments reserve | Total |
$ | $ | $ | $ | $ | |
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Balance at 1 July 2019 | 61,811,451 | (61,467,301) | 255,417 | 5,014,971 | 5,614,538 |
Total comprehensive loss for the period |
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Loss for the period | - | (498,016) | - | - | (498,016) |
Other Comprehensive income | - | - | 54 | - | 54 |
Total comprehensive loss for the period | - | (498,016) | 54 | - | (497,962) |
Transactions with owners in their capacity as owners | - | - | - | - | - |
Balance at 31 December 2019 | 61,811,451 | (61,965,317) | 255,471 | 5,014,971 | 5,116,576 |
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Balance at 1 July 2020 | 61,811,451 | (62,504,314) | 255,682 | 5,014,971 | 4,577,790 |
Total comprehensive loss for the period |
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Loss for the period | - | (365,879) | - | - | (365,879) |
Other Comprehensive loss | - | - | - | - | - |
Total comprehensive loss for the period | - | (365,879) | - | - | (365,879) |
Transactions with owners in their capacity as owners | - | - | - | - | - |
Balance at 31 December 2020 | 61,811,451 | (62,870,193) | 255,682 | 5,014,971 | 4,211,911 |
The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes in the full Half Year Report.
Consolidated Statement of Cash Flows for the half-year ended 31 December 2020
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| 31-Dec-20 | 31-Dec-19 |
$ | $ | ||
Cash flows from operating activities |
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Payments to suppliers and employees |
| (417,088) | (457,045) |
Interest received |
| 12,520 | 13,412 |
Other receipts |
| 40,009 | - |
Net cash used in operating activities |
| (364,559) | (443,633) |
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Cash flows from investing activities |
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Payments for exploration and evaluation |
| (12,588) | (93,999) |
Net cash used in investing activities |
| (12,588) | (93,999) |
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Net decrease in cash and cash equivalents |
| (377,147) | (537,632) |
Cash and cash equivalents at beginning of the period |
| 4,603,010 | 5,642,936 |
Effects of exchange rate changes on cash and cash equivalents |
| - | 53 |
Cash and cash equivalents at the end of the period |
| 4,225,863 | 5,105,357 |
The above Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes in the full Half Year Report.