Announcement PDF IMPACT MINERALS LIMITED (and Controlled Entities) ABN 52 119 062 261 HALF-YEAR FINANCIAL REPORT 31 December 2019 CONTENTS DIRECTORS’ REPORT ........................................................................................................................................................... 2 AUDITOR’S INDEPENDENCE DECLARATION ............................................................................................................. 6 CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE HALF-YEAR ENDED 31 DECEMBER 2019 .................................................................................................. 7 CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2019 ............................... 8 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE HALF-YEAR ENDED 31 DECEMBER 2019 ............................................................................................................................................................. 9 CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE HALF-YEAR ENDED 31 DECEMBER 2019 ........................................................................................................................................................... 10 NOTES TO the CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2019 ........................................................................................................................................................... 11 DIRECTORS’ DECLARATION............................................................................................................................................ 17 INDEPENDENT AUDITOR’S REVIEW REPORT ........................................................................................................... 18 HALF-YEAR FINANCIAL REPORT 31 DECEMBER 2019 Page 1 of 19 DIRECTORS’ REPORT Your Directors submit the financial report of the consolidated entity for the half-year ended 31 December 2019. 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 as below. Directors were in office for this entire period unless otherwise stated. • • • • • Peter Unsworth – Non-Executive Director Michael Jones – Managing Director Paul Ingram – Non-Executive Director Markus Elsasser – Non-Executive Director Eamon Hannon – Non-Executive Director (Resigned 10 September 2019) PRINCIPAL ACTIVITIES The principal activity of the Group during the financial year was exploration for deposits of nickel, gold, copper and platinum group elements. REVIEW OF OPERATIONS Commonwealth Gold-Silver-Zinc-Lead-Copper Project, NSW (IPT 100%) The Commonwealth Project comprises three 100% owned exploration licences that cover about 315 km2 of the highly prospective Lachlan Fold Belt about 100 km north of Orange in NSW. The belt is host to many major gold-silver-copper mines including the Cadia-Ridgeway deposits that contain at least 25 million ounces of gold and 5 million tonnes of copper. During the first Quarter Impact announced a significant increase in resources at Commonwealth including a maiden resource for the silver-rich Silica Hill Prospect. The new resource contains 88,800 ounces of gold and 3.3 million ounces of silver with significant zinc and lead credits, all of which occurs from surface to a depth of 250 metres and well within range of potential open pit mining. The updated Inferred Resource for the deposit at a cut-off of 0.5 g/t gold is 912,000 tonnes at 2.4 g/t gold, 44 g/t silver, 1.2% zinc and 0.5% lead including 142,000 tonnes at 4.5 g/t gold, 161 g/t silver, 4.6% zinc and 1.7% lead in the high grade massive sulphide lens at Main Shaft. At Silica Hill the maiden Inferred Resource at a 50 g/t silver cut-off is 710,000 tonnes at 0.8 g/t gold and 88 g/t silver. The resources are all open at depth and along trend beyond exceptional drill results such as: Main Shaft: 5.7 metres at 3.8 g/t gold, 347 g/t silver, 10.8% zinc and 3.7% lead including 0.5 metres at 4.9 g/t gold, 917 g/t silver, 10.2% zinc and 4.6% lead. Commonwealth South: 8 metres at 5.1 g/t gold, 20 g/t silver, 1.3% zinc and 0.5% lead including 0.5 metres at 34.3 g/t gold, 40 g/t silver, 5.8% zinc and 2.3% lead; and 4 metres at 41.8 g/t gold (1.3 ounces per tonne), 93 g/t silver, 5.5% zinc and 2.3% lead. Silica Hill: 22.5 metres at 1.7 g/t gold and 276 g/t silver; including 0.3 metres at 1.8 g/t gold and 4,200 g/t (135 ounces or 0.42%) silver; and also including 0.8 metres at 13.6 g/t gold and 40 g/t silver. HALF-YEAR FINANCIAL REPORT 31 DECEMBER 2019 Page 2 of 19 DIRECTORS’ REPORT In the second Quarter, new priority targets for porphyry copper-gold mineralisation were identified following a review of the project prompted by the discoveries of porphyry copper-gold at Boda-Kaiser (Alkane Resources Limited ASX:ALK), immediately along trend from one of Impact’s targets, and Thursday’s Gossan in Victoria (Stavely Minerals Limited ASX:SVY). Three priority areas were field checked and assays of rock chips are awaited. Boda South – an unexplored area of poor exposure where the Boda-Kaiser intrusive complex may extend for up to 500 metres on to Impact’s ground based on regional magnetic data; Apsley – an area of magnetic anomalies in Ordovician volcanic rocks with direct similarities to the BodaKaiser area and where fresh copper sulphides bornite and chalcopyrite occur in magnetic rocks; Spicers Creek – extensive quartz veining and weathered copper mineralisation in skarn-altered volcanics with previous high-grade rock chips of 21% copper and 3.2 g/t gold were returned from weathered rocks (results are enriched by weathering processes). Follow up work on these three targets was completed in January with assays expected by early March. Other targets were identified on the Day Dawn and Pine Hill projects, located south of Commonwealth and near the Copper Hill deposit (resources of 1.3 Moz gold and 0.5 Mt of copper – (ASX:IPT 22 November 2019), and at depth below the Commonwealth high sulphidation massive sulphide deposit. A full synthesis and review of previous exploration data is underway with a view to further field programmes as soon as practicable Broken Hill Project, NSW (IPT 100%) The Broken Hill Project comprises 727 km2 of exploration licences located southeast of Broken Hill, NSW and is prospective for: nickel-copper-cobalt-PGE mineralisation associated with ultramafic rocks; zinclead-silver mineralisation hosted by metasedimentary rocks and amphibolite (Broken Hill style); and pyrite-cobalt deposits similar to Thackaringa (72Mt at 852 ppm cobalt, 9.3% sulphur and 10% iron. During the six months Impact commenced a major review of its Broken Hill project in the light of recent record palladium prices. Work in the area has identified a new geodynamic framework which shows that the high grade nickelcopper-platinum mineralisation was formed in a similar place to, at the same time as, and by the same processes that led to the formation of the Jinchuan deposit in China, one of the world’s largest magmatic sulphide ore bodies. A major target generation exercise based on this new framework is in progress. These results add to previous work by Impact which has identified numerous areas for follow up work for high grade deposits of nickel-copper-platinum group metals (PGM)-cobalt along the entire length of a mafic-ultramafic complex interpreted from regional magnetic and gravity data to extend over about 40 km of trend. Very high-grade primary nickel-copper-PGM-gold mineralisation has been discovered along this complex by Impact at both the Red Hill Prospect and also the Platinum Springs Prospect. At Red Hill exceptional grades have been returned from drilling including a stand out intercept in vein hosted sulphide of: 1.2 metres at 10.4 g/t platinum, 10.9 g/t gold, 254 g/t (9.5 ounces) palladium, 7.4% nickel, 1.8% copper, 19 g/t silver and 0.5% cobalt. HALF-YEAR FINANCIAL REPORT 31 DECEMBER 2019 Page 3 of 19 DIRECTORS’ REPORT At Platinum Springs drilling returned a very high-grade intercept in magmatic massive sulphide of 0.6 metres at 11.5 g/t platinum, 25.6 g/t palladium, 1.4 g/t gold, 7.6% copper, 7.4% nickel and 44.3 g/t silver. The entire 40 km long belt has been very poorly explored and many targets remain to be followed up. This will be a focus of work for Impact in the next Quarter. In addition, research into the metallurgical recovery of the PGM’s is also continuing. Blackridge Gold Project, Qld (IPT 100%) Much of Impact’s work during the six months was focussed on its Blackridge Project in central Queensland however in November 2019 following extended discussions regarding a renegotiation of the option agreement that Impact had with Rock Solid Holdings Pty Ltd over key Mining Lease applications at the Blackridge project, the Board of Impact elected not to proceed with the exercise of its option to acquire 95% of the company. Accordingly, the proposed trial mining programme at Blackridge did not take place. FINANCIAL PERFORMANCE AND FINANCIAL POSITION During the half-year the Group reported an operating loss after tax of $572,077 (half-year to 31 December 2018: loss of $1,372,140). As at 31 December 2019 the Group had net assets of $11,760,306 (30 June 2019: $11,859,834) including $1,119,102 of cash and cash equivalents (30 June 2019: $2,002,624). AUDITOR’S DECLARATION Section 307C of the Corporations Act 2001 requires our auditors, Bentleys, to provide the directors of the company with an Independence Declaration in relation to the review of the half-year financial report. This Independence Declaration is set out on page 6 and forms part of this directors’ report for the halfyear ended 31 December 2019. This report is signed in accordance with a resolution of the Board of Directors. Peter Unsworth Chairman Perth, 6 March 2020 Competent Person’s Statement The review of exploration activities and results contained in this report is based on information compiled by Dr Mike Jones, a Member of the Australian Institute of Geoscientists. He is a director of the Company and works for Impact Minerals Limited. He has sufficient experience which is relevant to the style of mineralisation and types of deposits under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code). Dr Jones has consented to the inclusion in the report of the matters based on his information in the form and context in which it appears. HALF-YEAR FINANCIAL REPORT 31 DECEMBER 2019 Page 4 of 19 DIRECTORS’ REPORT Forward Looking Statements This document may contain certain forward-looking statements. Forward-looking statements include, but are not limited to statements concerning Impact Minerals Limited’s (Impact’s) current expectations, estimates and projections about the industry in which Impact operates, and beliefs and assumptions regarding Impact’s future performance. When used in this document, words such as “anticipate”, “could”, “plan”, “estimate”, “expects”, “seeks”, “intends”, “may”, “potential”, “should”, and similar expressions are forwardlooking statements. Although Impact believes that its expectations reflected in these forward-looking statements are reasonable, such statements are subject to known and unknown risks, uncertainties and other factors, some of which are beyond the control of Impact and no assurance can be given that actual results will be consistent with these forward-looking statements. HALF-YEAR FINANCIAL REPORT 31 DECEMBER 2019 Page 5 of 19 To The Board of Directors Auditor’s Independence Declaration under Section 307C of the Corporations Act 2001 As lead audit Partner for the review of the financial statements of Impact Minerals Limited for the period ended 31 December 2019, I declare that to the best of my knowledge and belief, there have been no contraventions of:   the auditor independence requirements of the Corporations Act 2001 in relation to the review; and any applicable code of professional conduct in relation to the review. Yours faithfully BENTLEYS Chartered Accountants Dated at Perth this 6th day of March 2020 DOUG BELL CA Partner CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE HALF-YEAR ENDED 31 DECEMBER 2019 CONSOLIDATED 31 Dec 2019 $ 31 Dec 2018 $ 115,407 1,163,239 287,189 - 402,596 1,163,239 Employee benefits expense (588,693) (202,019) Corporate and administration expenditure (267,575) (276,097) Depreciation and amortisation expense (19,529) (12,665) Occupancy (45,814) (43,652) (53,062) (2,000,946) (572,077) (1,372,140) - - (572,077) (1,372,140) - (211,280) Exchange differences on translating foreign operations 16 12 Other comprehensive income (net of tax) 16 (211,268) Total comprehensive Profit/(Loss) for the period (572,061) (1,583,408) Total comprehensive Profit/(Loss) income attributable to the owners of Impact Minerals Limited (572,061) (1,583,408) Cents per share Cents per share (0.04) (0.10) Notes Interest and other income 3 Research and development tax rebate Impairment of exploration expenditure 5 Profit/(Loss) before income tax expense Income tax expense Net Profit/(Loss) for the period Other comprehensive income Items that will not be reclassified to profit or loss Change in the fair value of financial assets Items that may be reclassified to profit or loss Basic Profit/(Loss) per share 9 The Consolidated Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with the accompanying notes. HALF-YEAR FINANCIAL REPORT 31 DECEMBER 2019 Page 7 of 19 CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2019 CONSOLIDATED Notes 31 Dec 2019 $ 30 Jun 2019 $ Current Assets Cash and cash equivalents 1,119,102 2,002,624 Trade and other receivables 4 398,346 23,320 Other current assets 34,695 - Total Current Assets 1,552,143 2,025,944 52,231 71,760 10,188,499 9,777,828 172,509 195,183 Total Non-Current Assets 10,413,239 10,044,771 TOTAL ASSETS 11,965,382 12,070,715 Trade and other payables 131,783 145,231 Short-term provisions 73,293 65,650 Total Current Liabilities 205,076 210,881 TOTAL LIABILITIES 205,076 210,881 11,760,306 11,859,834 44,900,024 44,900,024 Non-Current Assets Property, plant and equipment Exploration expenditure 5 Other non-current assets Current Liabilities NET ASSETS EQUITY Issued capital 6 Option reserve 6 823,960 577,577 Foreign currency translation reserve (504,731) (504,747) Financial asset reserve (506,456) (506,456) Transactions with non-controlling interest (1,161,069) (1,161,069) Accumulated losses (31,791,422) (31,445,495) TOTAL EQUITY 11,760,306 11,859,834 The Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes. HALF-YEAR FINANCIAL REPORT 31 DECEMBER 2019 Page 8 of 19 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE HALF-YEAR ENDED 31 DECEMBER 2019 Balance at 1 July 2018 Issued capital Option reserve Foreign currency translation reserve $ $ $ Financial asset $ Transactions with noncontrolling Accumulated interest losses reserve $ Total equity $ $ (1,161,069) (25,130,648) 19,522,107 44,900,024 1,418,620 (504,820) - Profit for the period - - - - - (1,372,140) (1,372,140) Other comprehensive income - - 12 (211,280) - - (211,268) Total comprehensive income for the half-year - - 12 (211,280) - (1,372,140) (1,583,408) Fair value of options issued - 44,188 - - - - 44,188 Fair value of options expired - (978,322) - - - 978,322 - Balance at 31 December 2018 44,900,024 484,486 (504,808) (211,280) (1,161,069) (25,524,466) 17,982,887 Balance at 1 July 2019 44,900,024 577,577 (504,747) (506,456) (1,161,069) (31,445,495) 11,859,834 Profit for the period - - - - - (572,077) (572,077) Other comprehensive income - - 16 - - - 16 Total comprehensive income for the half-year - - 16 - - (572,077) (572,061) Transactions with owners in their capacity as owners Transactions with owners in their capacity as owners Fair value of options issued - 472,533 - - - - 472,533 Fair value of options expired - (226,150) - - - 226,150 - 44,900,024 823,960 (504,731) (506,456) (1,161,069) (31,791,422) 11,760,306 Balance at 31 December 2019 The Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes. HALF-YEAR FINANCIAL REPORT 31 DECEMBER 2019 Page 9 of 19 CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE HALF-YEAR ENDED 31 DECEMBER 2019 CONSOLIDATED 31 Dec 2019 $ 31 Dec 2018 $ (373,132) (622,063) 13,242 31,980 - 644,894 (359,890) 54,811 - (82,394) (523,632) (1,916,696) Cash proceeds from disposal of tenements - 340,758 Proceeds from non-refundable deposit on Broken Hill JV - 25,219 NET CASH FLOWS USED IN INVESTING ACTIVITIES (523,632) (1,633,113) Net increase/(decrease) in cash and cash equivalents (883,522) (1,578,302) Cash and cash equivalents at beginning of the period 2,002,624 3,514,002 1,119,102 1,935,700 Notes CASH FLOWS FROM OPERATING ACTIVITIES Payments to suppliers and employees Interest received Research and development tax rebate received NET CASH FLOWS FROM/(USED IN) OPERATING ACTIVITIES CASH FLOWS FROM INVESTING ACTIVITIES Payments for property, plant and equipment Payments for exploration activities CASH AND CASH EQUIVALENTS AT END OF THE PERIOD 4 The Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes. HALF-YEAR FINANCIAL REPORT 31 DECEMBER 2019 Page 10 of 19 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2019 NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES a) Basis of Preparation These general purpose financial statements for the interim half-year reporting period ended 31 December 2019 have been prepared in accordance with the requirements of the Corporations Act 2001 and Australian Accounting Standards including AASB 134: Interim Financial Reporting. This interim report is intended to provide users with an update on the latest annual financial statements of Impact Minerals Limited and its controlled entities (the consolidated entity). As such, it does not contain information that represents relatively insignificant changes occurring during the half-year within the consolidated entity. It is therefore recommended that this financial report be read in conjunction with the annual financial statements of the consolidated entity for the year ended 30 June 2019, together with any public announcements made during the half-year. Except for Note 2(b) the accounting policies adopted are consistent with those of the previous financial year and corresponding interim reporting period. The half-year financial statements have been prepared on the historical cost basis, except where stated. For the purpose of preparing the half-year financial statements, the half-year has been treated as a discrete reporting period. b) New accounting standards and interpretations The Group has adopted all of the new and revised Standards and Interpretations issued by the Australian Accounting Standards Board (AASB) that are relevant to its operations and effective for an annual accounting period that begins on or after 1 July 2019. New and revised Standards and amendments thereof and Interpretations effective for the current year that are relevant to the Group include: • AASB 16 Leases; and • AASB Interpretation 23 Uncertainty over Income Tax Treatments. AASB 16 Leases requires lessees to account for all leases under a single on-balance sheet model. The standard includes two recognition exemptions for lessees namely leases of ’low-value’ assets and shortterm leases (i.e., leases with a lease term of 12 months or less). At the commencement date of a lease, a lessee will recognise a liability to make lease payments (i.e., the lease liability) and an asset representing the right to use the underlying asset during the lease term (i.e., the right-of-use asset). Lessees will separately recognise the interest expense on the lease liability and the depreciation expense on the right-of-use asset. The Group has adopted AASB 16 Leases however its current leases fall within either the ’low-value’ or ‘short-term’ recognition exemptions. The adoption of this standard has had no impact on the current or previous reporting period and as such there have been no adjustments to the opening balance of retained earnings. HALF-YEAR FINANCIAL REPORT 31 DECEMBER 2019 Page 11 of 19 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2019 AASB Interpretation 23 Uncertainty over Income Tax Treatments clarifies the application of the recognition and measurement criteria in AASB 112 Income Taxes when there is uncertainty over income tax treatments. The Interpretation addresses (a) whether an entity considers uncertain tax treatments separately; (b) the assumptions an entity makes about the examination of tax treatments by taxation authorities; (c) how an entity determines taxable profit (tax loss), tax bases, unused tax losses, unused tax credits and tax rates; and (d) how an entity considers changes in facts and circumstances. The adoption of this Interpretation has had no impact on the current or previous reporting period and as such there have been no adjustments to the opening balance of retained earnings. c) Going Concern The interim financial report has been prepared on the going concern basis, which contemplates the continuity of normal business activity and the realisation of assets and the settlement of liabilities in the ordinary course of business. The Consolidated Group generated a loss for the period of $572,077 (2018: loss of $1,372,140) and net cash outflows from operating activities of $359,890 (2018: inflows of $54,811). As at 31 December 2019 the Consolidated Group had a cash balance of $1,119,102 (30 June 2019: $2,002,624). On 26 February 2020 the Company completed the placement of 233,389,496 new shares to sophisticated and professional investors at $0.009 per share to raise $2,100,505 (before costs). The directors have prepared a cash flow forecast which indicates that the Consolidated Group will have sufficient cash flows to meet all commitments and working capital requirements for the 12-month period from the date of signing this financial report. NOTE 2: SEGMENT REPORTING Management has determined that the Group has one material reportable segment, being mineral exploration in Australia. The Board has considered the requirements of AASB 8 Operating Segments and the internal reports that are reviewed by the chief operating decision maker (the Managing Director) in allocating resources and have concluded at this time that there are no separately identifiable segments. HALF-YEAR FINANCIAL REPORT 31 DECEMBER 2019 Page 12 of 19 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2019 NOTE 3: INTEREST AND OTHER INCOME 31 Dec 2019 $ 31 Dec 2018 $ Interest income Gain on sale of tenements Other income 10,776 100,000 4,631 28,989 1,099,031 35,219 Cost carried forward 115,407 1,163,239 31 Dec 2019 $ 30 Jun 2019 $ 619,102 500,000 502,624 1,500,000 1,119,102 2,002,624 31 Dec 2019 $ 30 Jun 2019 $ Capitalised cost at the beginning of the period Exploration expenditure incurred during the period Impairment expense for the period 9,777,828 463,733 (53,062) 15,441,823 2,598,151 (8,262,146) Cost carried forward 10,188,499 9,777,828 NOTE 4: CASH AND CASH EQUIVALENTS Cash at bank and on hand Short-term deposits Cost carried forward NOTE 5: EXPLORATION EXPENDITURE Exploration and evaluation expenditure incurred is accumulated in respect of each identifiable area of interest. These costs are only carried forward to the extent that they are expected to be recouped through the successful development of the area or where activities in the area have not yet reached a stage that permits reasonable assessment of the existence of economically recoverable reserves. HALF-YEAR FINANCIAL REPORT 31 DECEMBER 2019 Page 13 of 19 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2019 NOTE 6: ISSUED CAPITAL Ordinary shares fully paid 31 Dec 2019 $ 30 Jun 2019 $ 44,900,024 44,900,024 a) Movements in ordinary shares on issue HALF-YEAR ENDED 31 DEC 2019 No. $ YEAR ENDED 30 JUN 2019 No. $ At the beginning of the period 1,321,679,789 44,900,024 1,321,679,789 44,900,024 At the end of the period 1,321,679,789 44,900,024 1,321,679,789 44,900,024 b) Movements in options on issue HALF-YEAR ENDED 31 DEC 2019 No. $ YEAR ENDED 30 JUN 2019 No. $ At the beginning of the reporting period 590,910,556 577,577 629,339,128 1,418,620 Options granted 101,000,000 472,533 60,000,000 137,279 Options expired (15,500,000) (226,150) (98,428,572) (978,322) At the end of the reporting period 676,410,556 823,960 590,910,556 577,577 During the half-year, Shareholders approved the issue of 74,000,000 unlisted options to Directors (or their nominees) at the 2019 Annual General Meeting. A further 27,000,000 unlisted options were issued to employees under the Company’s Director and Employee Acquisition Plan. Some of the unlisted options are subject to vesting conditions. The fair value of options is determined at grant date and is expensed over the vesting period, where applicable. Options with no vesting period are expensed at grant date. HALF-YEAR FINANCIAL REPORT 31 DECEMBER 2019 Page 14 of 19 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2019 NOTE 7: SHARE BASED PAYMENTS On 7 November 2019, 74,000,000 unlisted options were granted to Directors (or their nominees) following shareholder approval at the 2019 Annual General Meeting. On 15 November 27,000,000 unlisted options were issued to employees under the Company’s Director and Employee Acquisition Plan. The fair value of options granted was determined using a Black-Scholes option pricing model that takes into account the exercise price, the term of the option, the share price at grant date, the expected price volatility of the underlying share and the risk free rate for the term of the option. The following table lists the model inputs for the options granted during the half-year ended 31 December 2019: Inputs Number of options Exercise price Grant date Expiry date Vesting date Share price at grant date Historical volatility Risk-free interest rate Expected dividend yield Issue 40 Issue 41 Issue 42 Issue 43 37,000,000 $0.0149 7 Nov 2019 5 Nov 2023 Immediate $0.01 110% 0.86% 0% 37,000,000 $0.0149 7 Nov 2019 5 Nov 2023 5 Nov 2020 $0.01 110% 0.86% 0% 13,500,000 $0.0149 15 Nov 2019 5 Nov 2023 Immediate $0.008 110% 0.86% 0% 13,500,000 $0.0149 15 Nov 2019 5 Nov 2023 5 Nov 2020 $0.008 110% 0.86% 0% The expense for the half-year was $472,533 (2018: $44,188). NOTE 8: CONTINGENCIES There has been no change in contingent liabilities or assets since the annual reporting date. HALF-YEAR FINANCIAL REPORT 31 DECEMBER 2019 Page 15 of 19 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2019 NOTE 9: EARNINGS PER SHARE Half-year ended 31 Dec 2019 Cents Half-year ended 31 Dec 2018 Cents (0.04) (0.10) Basic profit/(loss) per share The following reflects the income and share data used in the calculations of basic profit/(loss) per share: Half-year ended 31 Dec 2019 $ Half-year ended 31 Dec 2018 $ (572,077) (1,372,140) Half-year ended 31 Dec 2019 Number Half-year ended 31 Dec 2018 Number 1,321,679,789 1,321,679,789 Profit / (Loss) used in calculating basic earnings per share Weighted average number of ordinary shares used in calculating basic loss per share The Group does not report diluted earnings per share unless the exercise of options would result in the issue of ordinary shares for less than the average market price of the shares during the period (i.e. the options are in the money). As at 31 December 2019 the Group had 676,410,556 unissued shares under option that were out of the money which were anti-dilutive (31 December 2018: 590,910,556). NOTE 10: EVENTS SUBSEQUENT TO THE REPORTING DATE On 24 February 2020, the Company announced that it had signed a non-binding Memorandum of Understanding (MOU) with Castillo Copper Limited (ASX:CCZ) and Squadron Resources Limited both also holders of large tenement packages around the Broken Hill Mine, to form the new Broken Hill Alliance (Alliance). The MOU provides a structured framework for the three parties to move towards a definitive agreement on expediting exploration and development over the tenements covered by the Alliance. Impact will contribute the rights to silver-lead-zinc Broken Hill-style mineralisation and other associated styles of mineralisation to the Alliance but will retain the rights to all of the platinum group metals as well as associated nickel-copper and other precious and associated metals across its entire tenement holding in the region. On 26 February 2020 the Company completed the placement of 233,389,496 new shares to sophisticated and professional investors at $0.009 per share to raise $2,100,505 (before costs). No other matters or circumstances have arisen since the end of the half year which significantly affect or may significantly affect the operations of the Group, the results of those operations, or the state of affairs in future years. HALF-YEAR FINANCIAL REPORT 31 DECEMBER 2019 Page 16 of 19 DIRECTORS’ DECLARATION The Directors of the Company declare that: 1) 2) The financial statements a