E79 Gold Mines : Half Year Accounts - December 2021

For personal use only

E79 GOLD MINES LIMITED

HALF-YEAR REPORT

FOR THE SIX MONTHS ENDED 31 DECEMBER 2021

Page 1

CONTENTS

For personal use only

CORPORATE DIRECTORY.....................................................................................................................	3
DIRECTORS' REPORT...........................................................................................................................	4
AUDITOR'S INDEPENDENCE DECLARATION .......................................................................................	8
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME.............	9
CONSOLIDATED STATEMENT OF FINANCIAL POSITION ...................................................................	10
CONSOLIDATED STATEMENT OF CASH FLOWS ................................................................................	11
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY ....................................................................	12
NOTES TO THE HALF-YEAR FINANCIAL STATEMENTS.......................................................................	13
DIRECTORS' DECLARATION...............................................................................................................	22
INDEPENDENT AUDITOR'S REVIEW REPORT ....................................................................................	23

Page 2

CORPORATE DIRECTORY

For personal use only

Directors

Christopher Cairns (Non-Executive Chair)

Peter Ironside (Non-Executive Director)

Deborah Lord (Non-Executive Director)

Company Secretary

Amanda Sparks

CEO

Edward (Ned) Summerhayes

Registered and Principal Office

First Floor, 168 Stirling Highway

Nedlands Western Australia 6009

Telephone: [phone]

Web Page: www.e79gold.com.au

Email: [e-mail]

ABN

34 124 782 038

Share Registry

Automic Pty Ltd

Level 5

191 St Georges Terrace

Perth Western Australia 6000

Telephone: [phone]

Solicitors

Steinepreis Paganin

Level 4, The Read Buildings

16 Milligan Street

Perth Western Australia 6000

Bankers

ANZ Bank

Level 5

240 St Georges Terrace

Perth Western Australia 6000

Stock Exchange Listing

Australian Securities Exchange Ltd

Level 40, Central Park, 152-158 St Georges Terrace

Perth Western Australia 6000

ASX Code: E79

Auditors

BDO Audit (WA) Pty Ltd

Level 9, Mia Yellagonga Tower 2

5 Spring Street

Perth Western Australia 6000

Page 3

DIRECTOR'S REPORT

For personal use only

Your Directors submit their interim financial report on the consolidated entity consisting of E79 Gold Mines Limited ("E79 Gold") and the entities it controls at the end of the half-year ended 31 December 2021.

DIRECTORS

The Directors in office at the date of this report and at any time during the half-year are as follows. Directors were in office for the entire period unless otherwise stated.

Christopher Cairns - appointed 30/9/2021

Peter Ironside

Deborah Lord - appointed 30/9/2021

Previous Directors:

Geoff Donohue - resigned 30/9/2021

Peter McIntyre - resigned 30/9/2021

PRINCIPAL ACTIVITY

The Group's principal activity for the period 1 July 2021 to 29 September 2021 was to seek a transaction of merit capable of becoming the major undertaking of the Company. From 30 September 2021, the Company's principal activity was mineral exploration.

REVIEW AND RESULTS OF OPERATIONS

CORPORATE

The following key activities occurred:

• On 9 July 2021, the Company changed its name to E79 Gold Mines Limited (previously Zamanco Minerals Limited).
• On 12 July 2021, a share consolidation took place on the basis of one share for each 4.3033333 shares resulting in consolidated shares on issue of 14,999,824 as at 12 July 2021.
• On 17 August 2021, a prospectus was lodged with ASIC for an Initial Public Offering ('IPO').
• On 7 October 2021, E79 Gold successfully listed on ASX following a successful $7 million IPO.

SUMMARY OF FINANCIAL PERFORMANCE

A summary of key financial indicators for the Group, with prior period comparison, is set out in the following table:

	31 December 2021	30 June 2021
	$	$
Cash and cash equivalents held	8,124,396	2,673,644
	Six Months Ended	Six Months Ended
	31 December 2021	31 December 2020
	$	$
Net profit/(loss) for the half-year after tax	(1,047,680)	20,875
Basic profit/(loss) per share (cents)	(2.61)	0.032
Net cash from/(used in) operating activities	(612,263)	(20,332)
Net cash from/(used in) investing activities	(232,896)	(304,001)
Net cash from/(used in) financing activities	6,293,104	-

Page 4

DIRECTOR'S REPORT

For personal use only

During the half-year:

• Expenditure on exploration totalled $335,901 (2020 half-year: $nil).
• On 30 September 2021, 15,000,000 shares were issued at a deemed issue price of 20 cents per share ($3,000,000) to acquire 100% of E79 Exploration Pty Ltd.
• On 1 October 2021, 35,000,000 shares were issued at 20 cents per share pursuant to an IPO. Gross proceeds were $7,000,000.

SUMMARY OF OPERATIONS

E79 Gold has two flagship projects, the Laverton South Project in the world-class Laverton gold district and the Jungar Flats Project in the North Murchison region.

Key highlights during the 6 months were:

• Successfully listing on ASX on 7 October 2021;
• Acquisition of gravity data on both projects;
• Commencing aircore drilling in November 2021 at the Laverton South gold project, with 3330 m drilled to 31 December 2021; and
• Safe and efficient drilling with no incidents to report.

Figure 1: Yilgarn Craton Greenstones showing E79 Gold Project locations.

Page 5