Half Year Financial Report
31 December 2024
ABN 70 126 678 037
CONTENTS & CORPORATE INFORMATION
Directors' Report | 1 |
Consolidated Statement of Comprehensive Income | 4 |
Consolidated Statement of Financial Position | 5 |
Consolidated Statement of Changes in Equity | 6 |
Consolidated Statement of Cash Flows | 7 |
Consolidated Notes to the Financial Statements | 8 |
Directors' Declaration | 12 |
Independent Auditor's Report | 13 |
Auditors Independence Declaration | 15 |
Board of Directors | |
Eddie King - Non-Executive Chairman | |
Myles Fang - Executive Director | |
Jason Hou - Non-Executive Director | |
Mark Calderwood - Non-Executive Director | |
Company Secretary | |
Heath Roberts | |
Principal and Registered Office | |
c/- BDJ Partners | |
Level 8, 124 Walker Street | |
North Sydney, NSW 2060 | |
T: +61 2 9906 7551 | |
E: info@easternresources.com.au | |
www.easternresources.com.au | |
ASX Share Register | |
Automic Group | |
GPO Box 5193 | |
Sydney, NSW 2001 | |
T: 1300 288 664 (Australia) | |
+61 2 9698 5414 (outside Australia) | |
www.investor.automic.com.au | |
Auditor | |
BDJ Partners | |
Level 8, 124 Walker Street | |
North Sydney, NSW 2060 | |
Securities Exchange Listing | |
Australian Securities Exchange | |
ASX Code: EFE |
DIRECTORS' REPORT
Your Directors submit their report for Eastern Resources Limited for the half year ended 31 December 2024.
DIRECTORS
The names of the Company's Directors in office during the half year and until the date of this report are as below. Directors were in office for this entire period unless otherwise stated.
Eddie King | Non-Executive Chairman | Appointed 10 | July 2017 |
Myles Fang | Executive Director | Appointed 12 | March 2018 |
Jason Hou | Non-Executive Director | Appointed 27 | September 2021 |
Mark Calderwood | Non-Executive Director | Appointed 12 | January 2023 |
REVIEW AND RESULTS OF OPERATIONS
Financial results
The net results of operations after applicable income tax expense for the half year was a loss of $257,028 (2023 $728,267). There was no exploration and evaluation expenditure written off during the period (2023: 396,289).
Lepidolite Hill Lithium Project
During the reporting period ("Period"), the Company has worked with experienced lithium consultancy, Nagrom, on metallurgical testwork samples from the Lepidolite Hill Lithium Project. The metallurgical testwork includes multi-stage separation and floatation to test the ability to produce a commercial lithium concentrate.
The work was completed, and the results were received in January 2025. The detailed results are in the Subsequent Events After the Balance Date section in this report.
Nowa Nowa Iron Project
During the Period, the Company continued to conduct ongoing works on the Environmental Effects Assessment ("EES") approval process, which is an all-inclusive permitting approach including all planning and operating licence requirements for the development and operation of Nowa Nowa.
The following assessments have currently been undertaken: Aboriginal Cultural Heritage Impact assessment, Ecology Impact assessment, Traffic Impact assessment and a Groundwater Impact assessment.
Nowa Nowa Copper Project
No exploration work was carried out during the Period.
Other Lithium Projects
No exploration activities were conducted at Trigg Hill, Yalgoo West and the Lake Johnston Projects during the Period.
New Projects Search and Acquisition
The Company has actively reviewed opportunities to acquire an advanced exploration or near-development project in this Period. A number of projects have been evaluated, and the Company has been in commercial discussion with various parties.
Corporate
During the Period and subsequent to shareholder approval received at the 2024 AGM, a number of initiatives were applied to optimise the Company's capital structure. First, a 1:10 consolidation was carried out. Second, a range of Director and executive performance rights and/or options were restructured consistent with the consolidation and as detailed in the 2024 AGM Notice. As a result, at year end and as at the date of this report, the capital structure of the Company is as set out below:
Eastern Resources Limited | 1 |
DIRECTORS' REPORT
Security Name | Total Holdings |
Fully Paid Ordinary Shares | 126,089,947 |
Unlisted Options $0.50 EXP 30.09.2025 | 2,076,560 |
Performance Rights EXP 29/11/2029 | 6,550,000 |
Principal Activities
The principal activity of the Company is the exploration of iron ore, lithium and base metal resources and the development of those resources into economic, cash flow generating mines.
Dividends
No dividends were paid or proposed during the period.
SUBSEQUENT EVENTS AFTER THE BALANCE DATE
January 2025 metallurgical results from preliminary test work for the samples from Lepidolite Hill Lithium Project were received. The results demonstrate that recoveries ranging from 80% to 82% producing a 3.7% Lithia in lepidolite concentrate using a combination of magnetic separation and conventional flotation could be achieved.
Results Summary
- summary of recoveries and grades for lithium (Li2O) and iron (Fe2O) are presented in Table 1 Table 1: Flotation Results
Fraction | Mass | Grade | Recovery | Grade | Recovery |
Li2O | Li2O | Fe2O3 | Fe2O3 | ||
Re-cleaner conc | 44.1% | 3.75% | 80.53% | 0.07% | 9.82% |
Cleaner tails. | 5.9% | 1.38% | 3.86% | 0.07$ | 1.16% |
Scavenger tails. | 39.2% | 0.28% | 5.34 % | 0.01% | 1.17% |
Magnetics | 1.4% | 1.53% | 1.07% | 12.43% | 53.08% |
Slimes | 9.4% | 2.01% | 9.20% | 1.24% | 34.78% |
Feed | 100.0% | 2.07% | 100.00% | 0.05% | 100.00% |
Metallurgical Test Work Overview
The first batch of 27 kg composite sample selected from the Lepidolite Hill Lithium Project, was delivered to Nagrom metallurgical and analytical laboratory in Perth, to conduct metallurgical test work. The metallurgical test program was designed to test the ability to produce a commercial lithium concentrate by conventional multi-stage flotation technology.
Flotation
Flotation is the most widely used technique for the beneficiation of lithium-bearing minerals and is more suited to the processing of fine particle size feed. The processing route selected was as follows:
- Stage Crush (~20kg) to P100 =3.35mm
- Grind (17x 1kg) to P80= 0.106mm
- Cyclone Deslime (17kg) to produce one (1) Overflow and one (1) Underflow fraction, with target Cut-Point @D50 =10-20μm
- WHGMS145 (~15kg) to produce one (1) Overflow and one (1) Underflow fraction, at 3000 Gauss
Eastern Resources Limited | 2 |
DIRECTORS' REPORT
- Sighter Multi-Stage Flotation (1kg) to produce up to ten (10) fractions
- All tests were done in Perth tap water
All samples were analysed via ICP/XRF for Li2O, Fe2O3, CaO, K2O, MgO, Al2O3, SiO2, Na2O, Ta2O5, Nb2O5 and LOI1000.
AUDITOR'S INDEPENDENCE DECLARATION
A copy of the Auditor's Independence Declaration to the Directors as required under section 307C of the Corporations Act 2001 is set out on page 15.
Signed in accordance with a resolution of the directors.
Eddie King
Chairman
14 March 2025
Eastern Resources Limited | 3 |
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE HALF YEAR ENDED 31 DECEMBER 2024
31 December | 31 December | ||
2024 | 2023 | ||
Note | $ | $ | |
Revenue | 4 | 84,940 | 93,003 |
ASX and ASIC fees | (42,707) | (39,196) | |
Audit fee | (15,000) | (13,000) | |
Contract administration services | (110,850) | (137,663) | |
Directors' fees (net of costs recharged to exploration projects) | (21,600) | (104,323) | |
Share-based payments | (96,651) | (59,467) | |
Rent | (12,501) | ||
- | |||
Insurance | (12,196) | (9,380) | |
Exploration and evaluation expenditure written off | 6 | - | (396,289) |
Other expenses from ordinary activities | (42,964) | (49,451) | |
Loss before income tax expense | (341,968) | (728,267) | |
Income tax expense | |||
Loss after income tax expense | (257,028) | (728,267) | |
Other comprehensive income | |||
Other comprehensive income for the period, net of tax | - | - | |
Total comprehensive (loss) attributable to members of | |||
Eastern Resources Limited | (257,028) | (728,267) | |
Basic loss per share (cents per share) | 8 | (0.21) | (0.59) |
Diluted loss per share (cents per share) | 8 | (0.21) | (0.59) |
The Consolidated Statement of Comprehensive Income should be read in conjunction with the accompanying notes.
Eastern Resources Limited | 4 |
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2024
31 December | 30 June | ||
2024 | 2024 | ||
Note | $ | $ | |
Current assets | |||
Cash assets | 5 | 3,774,250 | 4,313,778 |
Receivables | 181,709 | 98,846 | |
Total current assets | 3,955,959 | 4,412,624 | |
Non-current assets | |||
Tenement security deposits | 7 | 20,000 | 20,000 |
Property, plant and equipment | 1,514 | 2,273 | |
Deferred exploration and evaluation expenditure | 6 | 8,296,888 | 7,982,244 |
Total non-current assets | |||
8,318,402 | 8,004,517 | ||
Total assets | 12,274,361 | 12,417,141 | |
Current liabilities | |||
Payables | 128,025 | 182,428 | |
Total current liabilities | 128,025 | 182,428 | |
Total liabilities | 128,025 | 182,428 | |
Net assets | 12,146,336 | 12,234,713 | |
Equity | |||
Contributed equity | 9 | 26,470,137 | 26,398,137 |
Reserves | 10 | 378,592 | 281,941 |
Accumulated losses | (14,702,393) | (14,445,365) | |
Total equity | 12,146,336 | 12,234,713 | |
The Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes.
Eastern Resources Limited | 5 |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE HALF YEAR ENDED 31 DECEMBER 2024
At 1 July 2023
Loss for the period
Other comprehensive income
Total comprehensive income/(loss) for the period
Transactions with owners in their capacity as owners: Share-based payments
Lapsed of employee share option value transferred to accumulated losses
Total transactions with owners in their capacity as owners
At 31 December 2023
Contributed | Accumulated | ||||||
equity | losses | Reserves | Total equity | ||||
Note | $ | $ | $ | $ | |||
26,398,137 | (14,344,642) | 872,110 | 12,925,605 | ||||
- | (728,267) | - | (728,267) | ||||
- | - | - | - | ||||
- | (728,267) | - | (728,267) | ||||
10 | - | - | 59,467 | 59,467 | |||
10 | - | 743,251 | (743,251) | - | |||
- | 743,251 | (683,784) | 59,467 | ||||
26,398,137 | (14,329,658) | 188,326 | 12,256,805 |
At 1 July 2024 | 26,398,137 | (14,445,365) | 281,941 | 12,234,713 |
Loss for the period | - | (257,028) | - | (257,028) |
Other comprehensive income | - | - | - | - |
Total comprehensive income/(loss) for the | |
period | |
Transactions with owners in their | |
capacity as owners: | |
Share-based payments | 10 |
Issue of share capital, net of transaction | ||||
9 | ||||
costs | ||||
Total transactions with owners in their | ||||
capacity as owners | ||||
At 31 December 2024 | ||||
- | (257,028) | - | (257,028) | ||||||
- | - | 96,651 | 96,651 | ||||||
72,000 | - | - | 72,000 | ||||||
72,000 | - | 96,651 | 168,651 | ||||||
26,470,137 | (14,702,393) | 378,592 | 12,146,336 | ||||||
The Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes.
Eastern Resources Limited | 6 |
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE HALF YEAR ENDED 31 DECEMBER 2024
31 December | 31 December | ||
2024 | 2023 | ||
Note | $ | $ | |
Cash flows from operating activities | |||
Payments to suppliers and employees | (217,929) | (411,683) | |
Interest received | 6,917 | 90,901 | |
Net cash flows (used in) operating activities | (211,012) | (320,782) | |
Cash flows from investing activities | |||
Payments for deferred exploration and evaluation expenditure | (328,516) | (564,652) | |
Payments for property, plant and equipment | (2,815) | ||
- | |||
Net cash flows (used in) investing activities | (328,516) | (567,467) | |
Cash flows from financing activities | |||
Proceeds from issue of shares | 9 | - | - |
Net cash flows (used in) from financing activities | - | - | |
Net increase (decrease) in cash held | (539,528) | (888,249) | |
Add opening cash brought forward | 4,313,778 | 5,905,839 | |
Closing cash carried forward | 5 | 3,774,250 | 5,017,590 |
The Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes.
Eastern Resources Limited | 7 |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE HALF YEAR ENDED 31 DECEMBER 2024
1. CORPORATE INFORMATION
The financial report of Eastern Resources Limited (the "Company") and its wholly owned subsidiaries (the "Group") for the half year ended 31 December 2024 was authorised for issue in accordance with a resolution of the directors on 14 March 2025. Eastern Resources Limited is a company incorporated in Australia and limited by shares which are publicly traded on the Australian Securities Exchange using the ASX code EFE.
The nature of the operations and principal activities of the Group are described in the Directors' Report.
2. MATERIAL ACCOUNTING POLICY INFORMATION
The Half Year Financial Report does not include all notes of the type normally included within the annual financial report and therefore cannot be expected to provide as full an understanding of the financial performance, financial position and financing and investing activities of the Group as the full financial report.
The Half Year Financial Report should be read in conjunction with the Annual Financial Report of Eastern Resources as at 30 June 2024.
It is also recommended that the Half Year Financial Report be considered together with any public announcements made by Eastern Resources during the half year ended 31 December 2024 in accordance with the continuous disclosure obligations arising under the Corporations Act 2001.
Basis of preparation
The Half Year Financial Report is a general-purpose financial report, which has been prepared in accordance with the requirements of the Corporations Act 2001, applicable Accounting Standards, including AASB 134 Interim Financial Reporting and other mandatory professional reporting requirements. The Half Year Financial Report has been prepared on a historical cost basis.
For the purpose of preparing the Half Year Financial Report, the half year has been treated as a discrete reporting period.
Accounting policies
The half year consolidated financial statements have been prepared using the same accounting policies as used in the annual financial statements for the year ended 30 June 2024.
Management has reviewed and assessed the new accounting standards effective 1 July 2024 and determined that they have not had a material impact on the Half Year Financial Report of the Group.
Fair value measurement
The carrying amounts of the Group's assets and liabilities are a reasonable approximation of their fair values with the exception of deferred exploration and evaluation expenditure.
Basis of consolidation
The half year consolidated financial statements comprise the financial statements of Eastern Resources Limited and its wholly owned subsidiaries. The financial statements of the subsidiaries are prepared for the same reporting period as the parent company, using consistent accounting policies. All inter-company balances and transactions, including unrealised profits arising from intra-group transactions, have been eliminated in full. The subsidiaries are consolidated from the date on which control is transferred to the Group and cease to be consolidated from the date on which control is transferred out of the Group.
Going concern
The financial report has been prepared on the going concern basis which the Group ability to pay its debts as and when they become due and payable for at least the next 12 months from the date of issuing the financial report.
The Group incurred a net loss after tax from operations of $257,028 for the six months period to 31 December 2024 (2023: $728,267). The Group had operating cash outflows of $211,012 (2023: $320,782). The Group's net cash outflow from investing activities was $328,516 (2023: $567,467).
Eastern Resources Limited | 8 |