INTERIM REPORT 31 DECEMBER 2016
Corporte Directory DIRECTORS Mr Dvid R Hnnon Chirmn Mr Reccred (Ricky) P Fertig Non Executive Director Mr Mrtin C Hollnd Mnging Director Chief Executive Officer Mr Andrew G Phillips Executive Director Chief Finncil Officer Dr Luis Igncio Silv P Non-Executive Director COMPANY SECRETARY Mr Andrew G Phillips STOCK EXCHANGE LISTING Lithium Power Interntionl Limited shres re listed on the Austrlin Securities Exchnge (ASX code: LPI ) WEBSITE www.lithiumpowerinterntionl.com REGISTERED OFFICE Level 7, 151 Mcqurie Street, Sydney NSW 2000 Telephone: +61 2 9276 1245 Fcsimile: +61 2 9276 1284 Website: www.lithiumpowerinterntionl.com SHARE REGISTRY Bordroom Pty Limited Level 12, 225 George Street, Sydney NSW 2000 Telephone: +61 2 9290 9600 Fcsimile: +61 2 9279 0664 Website: www.bordroomlimited.com.u AUDITOR Ernst & Young The EY Centre Level 34, 200 George Street, Sydney NSW 2000 Telephone: +61 2 9248 5555 Website: www.ey.com/u SOLICITORS Bker nd McKenzie Level 27/50 Bridge St, Sydney NSW 2000 Telephone: +61 2 9225 0200 Website: www.bkermckenzie.com 2 LITHIUM POWER INTERNATIONAL lithiumpowerinterntionl.com
Contents BUSINESS OBJECTIVES Lithium Power Interntionl Limited hs used csh nd csh equivlents held t the time of listing nd the time since listing to secure, explore nd seek to cquire lithium tenements in Austrli nd South Americ, in wy consistent with its stted business objectives listed in the prospectus dted 24 My 2016 nd s listed on the compny s website. CORPORATE GOVERNANCE STATEMENT The Corporte Governnce Sttement ws pproved by the Bord of Directors t the sme time s the Annul Report nd cn be found on our website t www.lithiumpowerinterntionl. com/constitution-nd-corporte-governnce Directors Report 4 Auditor s Independence Declrtion 6 Sttement of profit or loss nd other comprehensive income 7 Sttement of finncil position 8 Sttement of chnges in equity 9 Sttement of csh flows 10 Notes to the finncil sttements 11 Directors Declrtion 17 Independent Auditor s Report to the members of Lithium Power Interntionl Limited 18 INTERIM REPORT 3
Directors report The directors present their report, together with the finncil sttements, on the consolidted entity (referred to herefter s the consolidted entity ) consisting of Lithium Power Interntionl Limited (referred to herefter s the Compny or prent entity ) nd the entities it controlled t the end of, or during, the period ended 31 December 2016. DIRECTORS The following persons were directors of Lithium Power Interntionl Limited during the whole of the finncil period nd up to the dte of this report, unless otherwise stted: Dvid R Hnnon Non-Executive Chirmn (ppointed 9 Februry 2017) Mrtin C Hollnd Chief Executive Officer/ Mnging Director Andrew G Phillips Chief Finncil Officer/ Executive Director Reccred P Fertig Non-Executive Director (Non-Executive Chirmn until 9 Februry 2017) Dr Luis Igncio Silv Non-Executive Director PRINCIPAL ACTIVITY During the finncil period the principle ctivity of the consolidted entity consisted of the identifiction, cquisition nd explortion of lithium ssets in Chile, Argentin nd Austrli. REVIEW OF OPERATIONS The loss for the consolidted entity fter providing for income tx mounted to $978,624 (31 December 2015: $278,276). The six months ended 31 December 2016 sw the consolidted entity complete its first six months since successfully completing the IPO of the compny on the Austrlin Securities Exchnge ( ASX ). In this time the consolidted entity hs mde significnt dvnces in the execution of its strtegy. MARICUNGA CHILE JOINT VENTURE During the hlf-yer ended 31 December 2016, the consolidted entity, through the its newly formed subsidiry entity Lithium Power Inversiones Chile SpA ( LPI Chile ) completed the formtion of the Mricung Joint Venture ( JV ) to cquire 50% of the Mricung lithium brine project in Chile. The formtion of the JV ws completed during the period, nd the finl closing nd the constitution of the NewCo Shreholders Agreement occurred in Sntigo, Chile on 13 Jnury 2017 ( Closing ) including constituting the JV Shreholder Agreement for the JV compny, Miner Slr Blnco SA ( NewCo ). As t 31 December 2016 the sttus of the JV ws s follows: The consolidted entity provided secured lon of US$2.7m to NewCo vi LPI Chile on 17 October 2016 to fund the recently completed drilling progrm. The consolidted entity, vi LPI Chile, cquired the tenements, Sn Frncisco, Slmin & Desprecid, directly from the lndowners for US$5.22m on 21 October 2016. These titles were trnsferred to LPI Chile on this dte nd re recorded s n explortion nd evlution sset s t 31 December 2016. These titles were then vended t cost into NewCo t Closing. The consolidted entity trnsferred to LPI Chile s bnk ccount US$4.25m on 5 December 2016, s prt of the completion process. This mount ws in LPI Chile s bnk ccount s t 31 December 2016. This mount ws trnsferred to NewCo t Closing nd converted to equity s per the requirements of the JV greement. This mount is to fund the next stges of the Mricung development progrm. As per the JV greement the consolidted entity is llocted 50% of the shre cpitl in NewCo t Closing. The consolidted entity, vi LPI Chile hs pid for 26.37% of its interest in NewCo through its funding contributions to dte. The libility for the remining US$15m is to be pid in instllments up until the completion of DFS to ern the remining 23.63%. 4 LITHIUM POWER INTERNATIONAL lithiumpowerinterntionl.com
The JV hs recently completed the drilling progrm t the Mricung joint venture project in Chile with the completion of: 8 rotry nd 3 sonic drill holes for the resource estimte; 1 hole instlled s test production well; nd 7 holes instlled s monitoring wells for the project Environmentl Impct Assessment. The sonic drilling ws undertken to obtin high qulity cores for porosity test work, n importnt input to the upcoming resource estimte. All 11 holes hve produced excellent results, with heightened lithium levels through-out the drill test re. The results of the drilling tests hve been disclosed on the ASX s results hve been received, in complince with the Compny s continuous disclosure obligtions. CENTENARIO ARGENTINA During the period the consolidted entity ws grnted 3 further licenses in the Centenrio slr to bring the totl to 6 properties licensed by the consolidted entity. Desktop nlysis of dt nd smples hs continued throughout the period. PILGANGOORA WESTERN AUSTRALIA During the period licences nd other miscellneous greements hve been finlised for the Pilgngoor project in Western Austrli. The consolidted entity hs lodged, hving completed its desktop nlysis of the project re, its Project of Works Sttement for the Pilgngoor explortion drilling progrm, expected to commence in the lst qurter of the finncil yer. CAPITAL RAISING During the period the consolidted entity, s pproved t the Annul Generl Meeting on 28 November 2016, rised totl of AU$13.5m new shre cpitl (less costs), by wy of Privte Plcement. These funds were rised to provide funding for the cquisition of the Mricung Joint Venture. This cpitl rise ws mde up of: privte plcement of AU$12m to sophisticted nd institutionl investors t plcement price of $0.38 per shre; n underwritten Shre Purchse Pln of AU$1m to existing shreholders t plcement price of $0.38 per shre; Plcement to the Directors, s pproved by shreholders t the Annul Generl meeting for AU$500k t plcement price of $0.38 per shre; nd ll new shres issued under the plcement hd one for one ttching option. The options expire on 24 November 2017 nd hve n exercise price of $0.55. SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS As detiled in the review of opertions the significnt stte of ffirs during the period were: the completion the Mricung Joint Venture, with totl US$12.7m pid, to dte, for the cquisition nd explortion of the Mricung sset; the issue of 52.6m shres in reltion to the cpitl rising process long with shres issued to the Mricung JV prtners in reltion the trnsction. Also issued ws 37.5m listed options s prt of the overll cpitl rise process; nd on 9 Februry 2017, the consolidted entity engged Mr Dvid Hnnon s Non-Executive Chirmn. Mr Hnnon brings significnt Austrlin public compny experience to the Chirmn s role. Mr Reccred Fertig resigned s Chirmn, to be ppointed Chirmn on the Mricung JV entity Miner Slr Blnco S.A. Mr Fertig remins Non-Executive Director of the consolidted entity. There were no other significnt chnges in the stte of ffirs of the consolidted entity during the finncil period. AUDITOR S INDEPENDENCE DECLARATION A copy of the uditor s independence declrtion follows this directors report. This report is mde in ccordnce with resolution of directors. On behlf of the directors, Dvid R Hnnon Chirmn 10 Mrch 2017 Sydney INTERIM REPORT 5
Ernst & Young 200 George Street Sydney NSW 2000 Austrli GPO Box 2646 Sydney NSW 2001 Tel: +61 2 9248 5555 Fx: +61 2 9248 5959 ey.com/u Auditor s Independence Declrtion to the Directors of Lithium Power Interntionl Limited As led uditor for the review of Lithium Power Interntionl Limited for the hlf-yer ended 31 December 2016, I declre to the best of my knowledge nd belief, there hve been: ) no contrventions of the uditor independence requirements of the Corportions Act 2001 in reltion to the review; nd b) no contrventions of ny pplicble code of professionl conduct in reltion to the review. This declrtion is in respect of Lithium Power Interntionl Limited nd the entities it controlled during the finncil period. Ernst & Young Ryn Fisk Prtner 10 Mrch 2017 A member firm of Ernst & Young Globl Limited Libility limited by scheme pproved under Professionl Stndrds Legisltion 6 LITHIUM POWER INTERNATIONAL lithiumpowerinterntionl.com
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME For the period ended 31 December 2016 From 1 Jul 2016 to 31 Dec 2016 CONSOLIDATED From 24 Jul 2015 to 31 Dec 2015 Note $ $ Interest revenue 16,013 2,793 Other income 4 800,506 Expenses Explortion expenses (84,513) Employee benefits expense (803,609) (139,430) Occupncy costs (37,655) (20,550) IPO trnsction costs (17,500) Legl nd professionl fees (487,553) (17,479) Trvel expense (131,058) (73,047) Administrtion expense (210,170) (11,919) Other expenses (33,126) Finnce costs (7,459) (1,144) Loss before income tx expense (978,624) (278,276) Income tx expense Loss fter income tx expense for the period ttributble to the owners of Lithium Power Interntionl Limited (978,624) (278,276) Other comprehensive income Items tht my be reclssified subsequently to profit or loss: Foreign currency trnsltion (2,407) Other comprehensive income for the period, net of tx (2,407) Totl comprehensive income for the period ttributble to the owners of Lithium Power Interntionl Limited (981,031) (278,276) Cents Cents Bsic ernings per shre 14 (0.79) (0.67) Diluted ernings per shre 14 (0.79) (0.67) The bove sttement of profit or loss nd other comprehensive income should be red in conjunction with the ccompnying notes. INTERIM REPORT 7
Finncil Sttements for the period ended 31 December 2016 STATEMENT OF FINANCIAL POSITION As t 31 December 2016 CONSOLIDATED 31 Dec 2016 30 Jun 2016 Note $ $ Assets Current ssets Csh nd csh equivlents 7,260,525 7,236,696 GST receivble 22,493 102,792 Other 66,650 4,115 Totl current ssets 7,349,668 7,343,603 Non-current ssets Receivbles 5 3,750,000 Investments 6 6,080,000 Explortion nd evlution 7 8,583,969 1,056,365 Totl non-current ssets 18,413,969 1,056,365 Totl ssets 25,763,637 8,399,968 Libilities Current libilities Trde nd other pybles 8 260,227 955,878 Totl current libilities 260,227 955,878 Totl libilities 260,227 955,878 Net ssets 25,503,410 7,444,090 Equity Issued cpitl 9 26,268,719 8,920,643 Reserves 10 2,090,215 400,347 Accumulted losses (2,855,524) (1,876,900) Totl equity 25,503,410 7,444,090 The bove sttement of finncil position should be red in conjunction with the ccompnying notes. 8 LITHIUM POWER INTERNATIONAL lithiumpowerinterntionl.com
STATEMENT OF CHANGES IN EQUITY For the period ended 31 December 2016 Issued Accumulted Totl cpitl Reserves losses equity Consolidted $ $ $ $ Blnce t 24 July 2015 Loss fter income tx expense for the period (278,276) (278,276) Other comprehensive income for the period, net of tx Totl comprehensive income for the period (278,276) (278,276) Trnsctions with owners in their cpcity s owners: Contributions of equity, net of trnsction costs 1,213,100 1,213,100 Blnce t 31 December 2015 1,213,100 (278,276) 934,824 Blnce t 1 July 2016 8,920,643 400,347 (1,876,900) 7,444,090 Loss fter income tx expense for the period (978,624) (978,624) Other comprehensive income for the period, net of tx (2,407) (2,407) Totl comprehensive income for the period (2,407) (978,624) (981,031) Trnsctions with owners in their cpcity s owners: Issue of shre cpitl 900,000 900,000 Issue of shre cpitl through privte plcement 13,000,002 13,000,002 Shres issued to cquire initil interest in Mricung JV 6,080,000 6,080,000 Fir vlue of options ttched to privte plcement (1,666,169) 1,666,169 Shre issue costs (965,757) (965,757) Shre bsed pyments 26,106 26,106 Blnce t 31 December 2016 26,268,719 2,090,215 (2,855,524) 25,503,410 The bove sttement of chnges in equity should be red in conjunction with the ccompnying notes. INTERIM REPORT 9
Finncil Sttements for the period ended 31 December 2016 STATEMENT OF CASH FLOWS For the period ended 31 December 2016 From 1 Jul 2016 to 31 Dec 2016 CONSOLIDATED From 24 Jul 2015 to 31 Dec 2015 Note $ $ Csh flows from operting ctivities Pyments to suppliers nd employees (inclusive of GST) (921,442) (314,488) Interest received 16,013 2,793 Interest nd other finnce costs pid (7,459) (1,144) Net csh used in operting ctivities (912,888) (312,839) Csh flows from investing ctivities Pyments for explortion nd evlution (7,527,604) (298,216) Net csh used in investing ctivities (7,527,604) (298,216) Csh flows from finncing ctivities Proceeds from issue of shres 13,020,002 1,213,100 Shre issue trnsction costs (965,757) Lons provided to relted prties (3,547,097) Net csh from finncing ctivities 8,507,148 1,213,100 Net increse in csh nd csh equivlents 66,656 602,045 Csh nd csh equivlents t the beginning of the finncil period 7,236,696 Effects of exchnge rte chnges on csh nd csh equivlents (42,827) Csh nd csh equivlents t the end of the finncil period 7,260,525 602,045 The bove sttement of csh flows should be red in conjunction with the ccompnying notes. 10 LITHIUM POWER INTERNATIONAL lithiumpowerinterntionl.com
Notes to the Finncil Sttements 31 December 2016 NOTE 1. GENERAL INFORMATION The finncil sttements cover Lithium Power Interntionl Limited s consolidted entity consisting of Lithium Power Interntionl Limited ( compny or prent entity ) nd the entities it controlled t the end of, or during, the period (collectively referred to s the consolidted entity ). The finncil sttements re presented in Austrlin dollrs, which is Lithium Power Interntionl Limited s functionl nd presenttion currency. Lithium Power Interntionl Limited is listed public compny limited by shres, incorported nd domiciled in Austrli. Its registered office nd principl plce of business re: Level 7, 151 Mcqurie Street Sydney NSW 2000 A description of the nture of the consolidted entity s opertions nd its principl ctivity re included in the directors report, which is not prt of the finncil sttements. The finncil sttements were uthorised for issue, in ccordnce with resolution of directors, on 10 Mrch 2017. NOTE 2. SIGNIFICANT ACCOUNTING POLICIES These generl purpose finncil sttements for the interim hlf-yer reporting period ended 31 December 2016 hve been prepred in ccordnce with Austrlin Accounting Stndrd AASB 134 Interim Finncil Reporting nd the Corportions Act 2001, s pproprite for for-profit oriented entities. Complince with AASB 134 ensures complince with Interntionl Finncil Reporting Stndrd IAS 34 Interim Finncil Reporting. These generl purpose finncil sttements do not include ll the notes of the type normlly included in nnul finncil sttements. Accordingly, these finncil sttements re to be red in conjunction with the nnul report for the yer ended 30 June 2016 nd ny public nnouncements mde by the Compny during the interim reporting period in ccordnce with the continuous disclosure requirements of the Corportions Act 2001. The principl ccounting policies dopted re consistent with those of the previous finncil yer nd corresponding interim reporting period, unless otherwise stted. NEW OR AMENDED ACCOUNTING STANDARDS AND INTERPRETATIONS ADOPTED The consolidted entity hs dopted ll of the new or mended Accounting Stndrds nd Interprettions issued by the Austrlin Accounting Stndrds Bord ( AASB ) tht re mndtory for the current reporting period. The doption of these Accounting Stndrds nd Interprettions did not hve ny significnt impct on the finncil performnce or position of the consolidted entity during the finncil hlf-yer ended 31 December 2016 nd re not expected to hve ny significnt impct for the full finncil yer ending 30 June 2017. Any new or mended Accounting Stndrds or Interprettions tht re not yet mndtory hve not been erly dopted. NOTE 3. OPERATING SEGMENTS IDENTIFICATION OF REPORTABLE OPERATING SEGMENTS The consolidted entity is orgnised into one operting segment, being the explortion nd evlution of erly stge Lithium resources. This is bsed on the internl reports tht re reviewed nd used by the Bord of Directors (who re identified s the Chief Operting Decision Mkers ( CODM )) in ssessing performnce nd in determining the lloction of resources. There is no ggregtion of operting segments. The operting segment informtion is the sme informtion s provided throughout the finncil sttements nd therefore not duplicted. INTERIM REPORT 11
Notes to the Finncil Sttements 31 December 2016 CONSOLIDATED From From 1 Jul 2016 to 24 Jul 2015 to 31 Dec 2016 31 Dec 2015 $ $ NOTE 4. OTHER INCOME Net foreign exchnge gin 800,506 The exchnge gin hs risen on the US dollr denominted inter compny lon grnted by Lithium Power Interntionl Limited, which hs n Austrlin Dollr functionl currency, to its newly estblished subsidiry, Lithium Power Inversiones Chile SpA, which hs US Dollr functionl currency. The lon blnce t 31 December 2016 is US$12,170,000. CONSOLIDATED 31 Dec 2016 30 Jun 2016 $ $ NOTE 5. NON-CURRENT ASSETS RECEIVABLES Lon to Mricung joint venture 3,750,000 Refer to note 6 for detils of the lon to Mricung joint venture. NOTE 6. NON-CURRENT ASSETS INVESTMENTS Investment 6,080,000 During the hlf-yer ended 31 December 2016, the consolidted entity, through the compny s newly formed subsidiry entity Lithium Power Inversiones Chile SpA ( LPI Chile ) begn the process of completing the Mricung Joint Venture ( JV ) to cquire 50% of the Mricung lithium brine project in Chile. The JV ws completed in Sntigo, Chile on 13 Jnury 2017 ( Closing ) with constituting the JV Shreholder Agreement for the JV Compny, Miner Slr Blnco SA ( NewCo ). As t 31 December 2016, the consolidted entity hd contributed US$12.17m for 26.37% interest in the JV. As t 31 December 2016 the following funds were llocted to the JV vi LPI Chile: A secured lon of US$2.7m to NewCo vi LPI Chile to fund the recently completed drilling progrm. The cquisition of tenements directly from the lndowners for US$5.22m by LPI Chile (note 7). The compny trnsferred to LPI Chile s bnk ccount US$4.25m on 5 December 2016, s prt of the completion process. This mount ws in LPI Chile s bnk ccount s t 31 December 2016 nd ws invested in NewCo t closing. Refer to note 15 for further informtion on the Closing of the JV Agreement on 13 Jnury 2017. NOTE 7. NON-CURRENT ASSETS EXPLORATION AND EVALUATION Explortion nd evlution expenditures t cost 8,583,969 1,056,365 12 LITHIUM POWER INTERNATIONAL lithiumpowerinterntionl.com
RECONCILIATIONS Reconcilitions of the written down vlues t the beginning nd end of the current finncil period re set out below: Explortion nd evlution expenditures Totl Consolidted $ $ Blnce t 1 July 2016 1,056,365 1,056,365 Additions 7,527,604 7,527,604 Blnce t 31 December 2016 8,583,969 8,583,969 Cpitlised explortion nd evlution expenditures re comprised of the costs incurred to cquire the consolidted entity s lithium tenements in Western Austrli, Chile nd Argentin nd explortion nd evlution ctivities incurred to dte. US$5.22M (AU$7.25M) of the dditions mde in the period were contributed into the Mricung JV t cost upon Closing of the JV greement on 13 Jnury 2017. Accordingly, these mounts will form prt of the investment in the Mricung JV in future periods. CONSOLIDATED 31 Dec 2016 30 Jun 2016 $ $ NOTE 8. CURRENT LIABILITIES TRADE AND OTHER PAYABLES Trde pybles 196,457 900,440 Accrued expenses 63,770 53,200 Other pybles 2,238 260,227 955,878 CONSOLIDATED 31 Dec 2016 30 Jun 2016 31 Dec 2016 30 Jun 2016 Shres Shres $ $ NOTE 9. EQUITY ISSUED CAPITAL Ordinry shres fully pid 164,335,905 111,709,582 26,268,719 8,920,643 INTERIM REPORT 13
Notes to the Finncil Sttements 31 December 2016 NOTE 9. EQUITY ISSUED CAPITAL (continued) MOVEMENTS IN ORDINARY SHARE CAPITAL Detils Dte Shres Issue price $ Blnce 1-Jul-16 111,709,582 8,920,643 Issue of shres 20-Oct-16 16,756,437 $0.38 6,367,446 Issue of shres 2-Dec-16 14,822,517 $0.38 5,632,556 Issue of shres 2-Dec-16 2,631,579 $0.38 1,000,000 Issue of shres to Directors 2-Dec-16 263,158 $0.38 100,000 Issue of shres to Directors 2-Dec-16 1,052,632 $0.38 400,000 Issue of shres to key personnel 2-Dec-16 1,000,000 $0.38 380,000 Issue of shres on cquisition of interest in Joint Venture 2-Dec-16 16,000,000 $0.38 6,080,000 Conversion of options 16-Dec-16 100,000 $0.20 20,000 Less fir vlue of options ttched to privte plcement $0.00 (1,666,169) Less issue costs net of txtion $0.00 (965,757) Blnce 31-Dec-16 164,335,905 26,268,719 ORDINARY SHARES Ordinry shres entitle the holder to prticipte in dividends nd the proceeds on the winding up of the Compny in proportion to the number of nd mounts pid on the shres held. The fully pid ordinry shres hve no pr vlue nd the Compny does not hve limited mount of uthorised cpitl. On show of hnds every member present t meeting in person or by proxy shll hve one vote nd upon poll ech shre shll hve one vote. All shres issued on 20 October 2016 nd 2 December 2016 except those issued to key personnel nd those issued in connection with the joint venture, hd one for one ttching option. Ech option entitles the holder to subscribe for one shre in the Compny. The options vested immeditely, hve n exercise price of $0.55 nd expire on 24 November 2017. Included in the shre trnsction costs is $1,666,169 which represents the fir vlue of options vested on the dy they were grnted. The fir vlue of the ttching options is independently determined using either the Blck-Scholes option pricing model tht tkes into ccount the exercise price, the term of the option, the impct of dilution, the shre price t grnt dte nd expected price voltility of the underlying shre, the expected dividend yield nd the risk free interest rte for the term of the option. CONSOLIDATED 31 Dec 2016 30 Jun 2016 $ $ NOTE 10. EQUITY RESERVES Foreign currency reserve (2,113) 294 Shre-bsed pyments reserve 426,159 400,053 Options reserve 1,666,169 2,090,215 400,347 FOREIGN CURRENCY RESERVE The reserve is used to recognise exchnge differences rising from the trnsltion of the finncil sttements of foreign opertions to Austrlin dollrs. It is lso used to recognise gins nd losses on hedges of the net investments in foreign opertions. SHARE-BASED PAYMENTS RESERVE The reserve is used to recognise the vlue of equity benefits provided to employees nd directors s prt of their remunertion, nd other prties s prt of their compenstion for services. 14 LITHIUM POWER INTERNATIONAL lithiumpowerinterntionl.com
OPTIONS RESERVE The reserve is used to recognise the vlue of equity benefits provided to shreholders who receive n one for one ttching option for ech shre cquired in the Compny. MOVEMENTS IN RESERVES Movements in ech clss of reserve during the current finncil period re set out below: Foreign currency Shre-bsed pyments Options Totl Consolidted $ $ $ $ Blnce t 1 July 2016 294 400,053 400,347 Foreign currency trnsltion (2,407) (2,407) Shre-bsed pyments 26,106 26,106 Options reserve 1,666,169 1,666,169 Blnce t 31 December 2016 (2,113) 426,159 1,666,169 2,090,215 NOTE 11. EQUITY DIVIDENDS There were no dividends pid, recommended or declred during the current or previous finncil period. NOTE 12. FAIR VALUE MEASUREMENT The crrying mounts of trde nd other receivbles nd trde nd other pybles re ssumed to pproximte their fir vlues due to their short-term nture. NOTE 13. CONTINGENT LIABILITIES There were no contingent libilities t 31 December 2016. CONSOLIDATED From From 1 Jul 2016 to 24 Jul 2015 to 31 Dec 2016 31 Dec 2015 $ $ NOTE 14. EARNINGS PER SHARE Loss fter income tx ttributble to the owners of Lithium Power Interntionl Limited (978,624) (278,276) Number Number Weighted verge number of ordinry shres used in clculting bsic ernings per shre 123,912,246 41,535,554 Weighted verge number of ordinry shres used in clculting diluted ernings per shre 123,912,246 41,535,554 Cents Cents Bsic ernings per shre (0.79) (0.67) Diluted ernings per shre (0.79) (0.67) 68,900,000 options on issue hve been excluded from the weighted verge number of ordinry shres used in clculting diluted ernings per shre s they re considered nti-dilutive. INTERIM REPORT 15
Notes to the Finncil Sttements 31 December 2016 NOTE 15. EVENTS AFTER THE REPORTING PERIOD The Mricung Joint Venture ( JV ) ws completed in Sntigo, Chile on 13 Jnury 2017 with the constituting of the JV Shreholder Agreement for the JV Compny, Miner Slr Blnco SA ( NewCo ). As result of the following occurred: The US$2.7M (AU$3.75m) lon from LPI Chile to the JV ws converted to equity in the JV. LPI mde csh pyment of US$4.25m in exchnge for equity in the JV. LPI Chile contributed Explortion nd Evlution ssets cquired for US$5.22m (AU$7.25m) to the JV in exchnge for equity in the JV. The JV grnted LPI n dditionl interest of 23.63% in the JV, bringing LPI s totl interest to 50%, in exchnge for LPI committing to mke pyment of US$15m by November 2017. The Investment greement grnted LPI the first right of refusl to cquire further 32.3% interest in the JV, from the Chilen corporte JV prtner. On 9 Februry 2017, the consolidted entity engged Mr Dvid Hnnon s Non-Executive Chirmn. Mr Hnnon brings significnt Austrlin public compny experience to the Chirmn s role. Mr Reccred Fertig resigned s Chirmn, to be ppointed Chirmn on the Mricung JV entity Miner Slr Blnco S.A. Mr Fertig remins Non-Executive Director of the consolidted entity. No other mtter or circumstnce hs risen since 31 December 2016 tht hs significntly ffected, or my significntly ffect the consolidted entity s opertions, the results of those opertions, or the consolidted entity s stte of ffirs in future finncil yers. 16 LITHIUM POWER INTERNATIONAL lithiumpowerinterntionl.com
Directors declrtion In the directors opinion: the ttched finncil sttements nd notes comply with the Corportions Act 2001, the Accounting Stndrds, the Corportions Regultions 2001 nd other mndtory professionl reporting requirements; the ttched finncil sttements nd notes give true nd fir view of the consolidted entity s finncil position s t 31 December 2016 nd of its performnce for the finncil period ended on tht dte; nd there re resonble grounds to believe tht the Compny will be ble to py its debts s nd when they become due nd pyble. Signed in ccordnce with resolution of directors mde pursunt to section 295(5)() of the Corportions Act 2001. On behlf of the directors, Dvid R Hnnon Chirmn 10 Mrch 2017 Sydney INTERIM REPORT 17
Ernst & Young 200 George Street Sydney NSW 2000 Austrli GPO Box 2646 Sydney NSW 2001 Tel: +61 2 9248 5555 Fx: +61 2 9248 5959 ey.com/u To the members of Lithium Power Interntionl Limited Report on the hlf yer finncil report We hve reviewed the ccompnying hlf-yer finncil report of Lithium Power Interntionl Limited, which comprises the sttement of finncil position s t 31 December 2016, sttement of comprehensive income, sttement of chnges in equity nd sttement of csh flows for the hlf-yer ended on tht dte, notes comprising summry of significnt ccounting policies nd other explntory informtion, nd the directors declrtion of the consolidted entity comprising the compny nd the entities it controlled t the hlf-yer end or from time to time during the hlf-yer. Directors Responsibility for the Hlf-Yer Finncil Report The directors of the compny re responsible for the preprtion of the hlf-yer finncil report tht gives true nd fir view in ccordnce with Austrlin Accounting Stndrds nd the Corportions Act 2001 nd for such internl controls s the directors determine re necessry to enble the preprtion of the hlf-yer finncil report tht is free from mteril missttement, whether due to frud or error. Auditor s Responsibility Our responsibility is to express conclusion on the hlf-yer finncil report bsed on our review. We conducted our review in ccordnce with Auditing Stndrd on Review Enggements ASRE 2410 Review of Finncil Report Performed by the Independent Auditor of the Entity, in order to stte whether, on the bsis of the procedures described, we hve become wre of ny mtter tht mkes us believe tht the hlf-yer finncil report is not in ccordnce with the Corportions Act 2001 including: giving true nd fir view of the consolidted entity s finncil position s t 31 December 2016 nd its performnce for the hlf-yer ended on tht dte; nd complying with Accounting Stndrd AASB 134 Interim Finncil Reporting nd the Corportions Regultions 2001. As the uditor of Lithium Power Interntionl nd the entities it controlled during the hlf-yer, ASRE 2410 requires tht we comply with the ethicl requirements relevnt to the udit of the nnul finncil report. A review of hlf-yer finncil report consists of mking enquiries, primrily of persons responsible for finncil nd ccounting mtters, nd pplying nlyticl nd other review procedures. A review is substntilly less in scope thn n udit conducted in ccordnce with Austrlin Auditing Stndrds nd consequently does not enble us to obtin ssurnce tht we would become wre of ll significnt mtters tht might be identified in n udit. Accordingly, we do not express n udit opinion. Independence In conducting our review, we hve complied with the independence requirements of the Corportions Act 2001. We hve given to the directors of the compny written Auditor s Independence Declrtion, copy of which is included in the Directors Report. A member firm of Ernst & Young Globl Limited Libility limited by scheme pproved under Professionl Stndrds Legisltion 18 LITHIUM POWER INTERNATIONAL lithiumpowerinterntionl.com
Pge 2 Conclusion Bsed on our review, which is not n udit, we hve not become wre of ny mtter tht mkes us believe tht the hlf-yer finncil report of Lithium Power Interntionl Limited is not in ccordnce with the Corportions Act 2001, including: ) giving true nd fir view of the consolidted entity s finncil position s t 31 December 2016 nd of its performnce for the hlf-yer ended on tht dte; nd b) complying with Accounting Stndrd AASB 134 Interim Finncil Reporting nd the Corportions Regultions 2001. Ernst & Young Ryn Fisk Prtner Sydney 10 Mrch 2017 A member firm of Ernst & Young Globl Limited Libility limited by scheme pproved under Professionl Stndrds Legisltion INTERIM REPORT 19
REGISTERED OFFICE Level 7, 151 Mcqurie Street, Sydney NSW 2000 Telephone: +61 2 9276 1245 Fcsimile: +61 2 9276 1284 Website: www.lithiumpowerinterntionl.com