MANAS RESOURCES LIMITED
ABN 23 128 042 606
INTERIM FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE 2016
Contents Page
Directors' Report 3
Auditor's Independence Declaration 5
Condensed Statement of Comprehensive Income 6
Condensed Statement of Financial Position 7
Condensed Statement of Changes in Equity 8
Condensed Statement of Cash Flows 9
Notes to the Condensed Financial Statements 10
Directors' Declaration 16
Independent Auditor's Review Report 17
This interim financial report does not include all the notes of the type normally included in an annual financial report. Accordingly, this report is to be read in conjunction with the annual report for the period ended 31 December 2015 and any public announcements made by Manas Resources Limited during the interim reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001.
DIRECTORS' REPORT
Your directors submit the financial report of the consolidated entity comprising Manas Resources Limited ("Manas" or the "Company") and its controlled entities (collectively the "Group" or "Consolidated Entity") for the half-year ended 30 June 2016. The directors report as follows:
Directors
The names of directors who held office during or since the end of the half-year and until the date of this report are noted below. Directors were in office for this entire period unless otherwise stated.
Mark Calderwood Chairman
Colin Carson Non-Executive Director
Justin Lewis Non-Executive Director
Results
The consolidated loss for the half-year after tax was $19,483,685 (6 months ended 30 June 2015: profit $8,612,698). This includes an impairment loss on Kyrgyz exploration assets of $18.54 million. The impairment loss arises in recognition of an agreement entered into by the Company subsequent to the period-end for a conditional sale of the Kyrgyz assets. The loss brings the carrying value of these assets in line with the agreed sale price (refer to subsequent event note 9 for further information). The profit for the previous half-year arose solely as a result of a reversal ($9,647,839) of the write down in asset values that was recorded in the 31 December 2014 Financial Statements. This was as a consequence of a change in the Board's position with respect to the Kyrgyz mineral assets since the issue of the 31 December 2014 Financial Statements. Further information is provided elsewhere in this report.
Review of Operations for the Half-Year
Victoria Gold Project (VGP) Heads of Agreement, Tanzania
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Binding Heads of Agreement to acquire the VGP in Tanzania executed in June 2016 with US$200,000 deposit paid prior to period-end, refer to announcement dated 27 June 2016 for details.
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The VGP comprises a significant tenement holding with identified areas of gold mineralisation and excellent exploration upside, strategically located near several established mining operations in the multi-million ounce Lake Victoria Gold Field.
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Technical and legal due diligence in progress following appointment of key consultants.
Shambesai Gold Project (SGP), Kyrgyz Republic, Central Asia
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Project economics for a smaller open pit option at SGP updated in February 2016.
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Djilginsai, Aksu and Savoyardy (prospecting) licenses relinquished during the period.
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Discussions progressed with a number of parties on potential transactions for the funding or sale of Shambesai.
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Subsequent to period-end, a binding Term Sheet was signed with Guizhou Geology and Mineral Resource Development Company Ltd in late August for the disposal of the Company's Australian subsidiary, Manas Holdings (Kyrgyz) Pty. Ltd., which owns the SGP. The US$10 million sale transaction is anticipated to complete around the end of November 2016, with a US$500,000 deposit (refundable in very limited circumstances) having been received at the date of this report and the balance of US$9,500,000 due on completion.
Also subsequent to period-end, a separate agreement was signed contemporaneously for sale of the Savoyardy Project for US$500,000, completion of which is expected around the end of September 2016.
Further details of the sale of the Kyrgyz assets are contained in the ASX announcement dated 31 August 2016.
Corporate
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The Company successfully completed a number of capital raisings during and post the reporting period including:
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$821,000 before costs by way of a share placement and subsequent non-renounceable 2 for 3 entitlement issue both at $0.001 per share;
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$657,370 before costs in a single tranche share placement at $0.0018 per share; and
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$1.35 million in a share purchase plan at $0.00275 per share post period-end.
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The appointment of Mr Philip Reese as the Company's Chief Executive Officer.
Auditor's Independence Declaration
Section 307C of the Corporations Act 2001 requires our auditors, HLB Mann Judd, to provide the directors of the Company with an Independence Declaration in relation to the review of the interim financial report. This Independence Declaration is set out on the following page and forms part of this directors' report for the half-year ended 30 June 2016.
This report is signed in accordance with a resolution of the Board of Directors made pursuant to s.306(3) of the
Corporations Act 2001.
Mark Calderwood Chairman
Perth, 13 September 2016