MOLY MINES LIMITED
FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 30 JUNE 2016
ABN 32 103 295 521
Board of Directors
Nelson Chen Non-Executive Chairman
Gregory Jones Non-Executive Director
Anthony Martin Non-Executive Director
Gou Qing Lou Non-Executive Director
Executive Officers
Graeme Kininmonth Acting Chief Executive Officer
Riccardo Vittino Chief Financial Officer
Susan Hunter Company Secretary
Principal & Registered Office
50 Kings Park Road PO Box 8215
West Perth, WA, 6005 Subiaco East, WA, 6008
Telephone: +61 8 9429 3300
Fax: +61 8 9429 3399
Email: [email protected]
Website: www.molymines.com
ASX Share Register
Computershare Investor Services Pty Ltd Level 11 / 172 St Georges Terrace Perth, WA, 6000
Telephone: +61 8 9323 2000
1300 850 505 (investors within Australia)
Fax: +61 8 9323 2033
Website: www.computershare.com
Auditor
Deloitte Touche Tohmatsu Tower 2, Brookfield Place 123 St Georges Terrace Perth, WA, 6000, Australia
Telephone +61 8 9365 7000
Fax +61 8 9365 7001
Web: www.deloitte.com.au
Your directors submit their report for the half-year ended 30 June 2016.
DIRECTORS
The names of Moly Mines Limited (the Company or Moly Mines) directors in office during the half-year and until the date of this report are set out below. Directors were in office for this entire period unless otherwise stated.
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Nelson Chen
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Non-Executive Chairman
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Gregory Jones
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Non-Executive Director
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Anthony Martin
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Non-Executive Director
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Gou Qing Lou
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Non-Executive Director
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Kang Huan Jun
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Non-Executive Director - resigned 30 May 2016
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Cathie (Wei) Wu
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Non-Executive Director - resigned 27 May 2016
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REVIEW AND RESULTS OF OPERATIONS
Principal Activities
The principal activity of Moly Mines and its subsidiaries (the Group) during the half -year was the ongoing evaluation of potential acquisitions.
Results from Operations
The net loss after taxation attributable to the members of Moly Mines f or the half-year to 30 June 2016 was A$3,226,000 (half-year to 30 June 2015: profit of A$641,000). The basic and diluted loss per share for the Company was 0.84 cents per share (half-year to 30 June 2015: profit of 0.17 cents per share). The Company's financial performance and results have been, and will continue to be, attributable to its exploration, evaluation and development activities on its current ground holdings or properties that may be acquired in the future.
Financial Position
As at 30 June 2016, the Company had A$65.8 million cash on hand (31 Dec 2015: A$69.1 million). Operations Summary
Spinifex Ridge Iron Ore Mine - Pilbara, Western Australia
For the period under review, no exploration activity was undertaken on Moly Mines tenements. Environmental monitoring on the rehabilitated waste dumps associated with the Iron Ore mine continued.
The Spinifex Ridge Molybdenum / Copper Project remains on care and maintenance. Associated facilities and infrastructure remain in good condition.
Finalisation of the Iron Ore Sales agreement with Mineral Resources Limited ( "MRL") continued during the period. MRL and Moly agreed that the disputed calculation of the quantity of iron ore available from the site should be determined by arbitration. An Arbitrator has been agreed and preli minary documentation prepared. It is expected that the dispute will be heard by the Arbitrator in the second half of the calendar year.
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Corporate
The Company's current acquisition strategy remains unchanged and is focussed on near term production assets. Moly Mines undertook a number of due diligence activities during the half year, with a view to progressing toward a transaction on a suitable project.
There were two changes to the Board made during the half year. Ms Cathie Wu resigned as an Independ ent Non-Executive Director on 27 May 2016. Mr Kang Huan Jun, a nominee of major shareholder Hanlong Mining Investment Pty Ltd, decided not to offer himself for re -election to the Board and ceased his role as Non-Executive Director on 30 May 2016.
Securities on Issue
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Balance 30 June 2016
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Ordinary shares
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384,893,989
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Options
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- EIG Warrants
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4,832,157
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Total options
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4,832,157
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Total potential ordinary shares
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389,726,146
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ROUNDING
The amounts contained in this report and in the financial report have been rounded to the nearest thousand dollars (when rounding is applicable) under the option available to the Company under ASIC CO 98/0100. The Company is an entity to which the class order applies.
AUDITORS' INDEPENDENCE DECLARATION
We have obtained the attached independence declaration from our auditors, Deloitte, which forms part of this report.
Signed in accordance with a resolution of directors.
Nelson Chen Chairman
22nd August 2016
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