Develop Global Limited
ABN 28 122 180 205
Interim Financial Report
for the Half Year ended
31 December 2023
Develop Global Limited | Interim Financial Report |
Corporate Directory
DIRECTORS | |
Michael Blakiston | Non-Executive Chair |
Bill Beament | Managing Director |
Shirley In't Veld | Non-Executive Director |
Justine Magee | Non-Executive Director |
COMPANY SECRETARY
Elle Farris
CHIEF FINANCIAL OFFICER
Ben MacKinnon
REGISTERED OFFICE/ PRINCIPAL PLACE OF BUSINESS
234 Railway Parade
West Leederville WA 6007
Australia
Tel: (61 8) 6389 7400
Fax: (61 8) 9463 7836
ABN
28 122 180 205
WEBSITE
www.develop.com.au
QUOTED SECURITIES
ASX Code: DVP
AUDITORS
BDO Audit (WA) Pty Ltd
Level 9, Mia Yellagonga Tower 2
5 Spring Street
Perth WA 6000
Australia
SHARE REGISTRY
Link Market Services Limited
Level 12, 250 St Georges Terrace
Perth WA 6000
Australia
Tel: (61) 1300 554 474
Fax: (61 2) 9287 0303
TABLE OF CONTENTS
Directors' Report Declaration -5 Auditor's Independence Declaration - 6
Consolidated Statement of Profit or Loss and Other Comprehensive Income -7
Consolidated Statement of Financial Position -8
Consolidated Statement of Cash Flows -10
Notes to the Consolidated Financial Statements - 11
Directors' Declaration - 23 Independent Audit's Review Report - 24
2
Develop Global Limited | Interim Financial Report |
Directors' Report
The Directors present their report together with the consolidated financial statements of the Group comprising of Develop Global Limited ("Company") and its subsidiaries ("Group") for the half year ended 31 December 2023 and the auditor's report thereon.
Directors
The directors of the Company at any time during or since the end of the financial period are:
Michael Blakiston | Non-Executive Chair |
Bill Beament | Managing Director |
Shirley In't Veld | Non-Executive Director |
Justine Magee | Non-Executive Director |
Principal Activities
The principal activities of the Group during the half-year were mineral exploration and development of its projects alongside the operations of its underground mining services division - Develop Mining Services. Key activities during the half-year involved the continued progression towards the development of the Company's Woodlawn project and the acquisition of Essential Metals. The Develop Mining Services Division continued with the ramp-up and progression of the Bellevue contract alongside the establishment of the Tjiwarl Develop JV and the awarding of the Mt Marion Contact.
Review of Operations
During the half year Develop recorded a consolidated loss of $3,697,765 (31 December 2022: $6,399,825). The contract revenue for the half year ended 31 December 2023 was $65,800,203 (31 December 2022: $23,828,708) with $14,864,813 capitalised to Mine Properties and $4,884,011 capitalised to Exploration and Evaluation during the half year to 31 December 2023.
As at 31 December 2023, the Company had 242,615,030 quoted fully paid ordinary shares (30 June 2023: 180,987,603) and 31,915,000 options issued over shares (30 June 2023: 32,008,467).
As at 31 December 2023 the Group held cash reserves of $32,657,325 (30 June 2023: $21,769,145).
Significant changes in State of Affairs
On 6th November 2023, Develop acquired Essential Metals Ltd (Refer Note 11). Essential Metals holds a selection of projects and JV agreements with the most advanced project being the Pioneer Dome Lithium project. The fair value of the exploration assets acquired is $147,901,398 (inclusive of transactions costs). Develop acquired Essential Metals Ltd for $141,346,280 in Ordinary Shares (44,033,109 Ordinary Shares).
During the financial year to date the group entered a 50:50 Joint Venture with the Tjiwarl Contracting Services and commenced ROM Loading work at the Bellevue Gold Project.
Capital structure:
- On 3rd July 2023, the Company announced the proposed acquisition of Essential Metals by scheme of arrangement alongside an ANREO and a capital raise of $50 million at a price of $3.20/share. A total of 44,033,109 shares were issued under the scheme of arrangement and 15,625,000 under the capital raise/ANREO.
- On the 29th November 2023 21,724 share rights were issued to Michael Blakiston in lieu of the director fees owed to him for the July 2023 to Dec 2023 period.
- On the 6th and 14th November 2023, the group issued 922,886 and 180,028 shares respectively in lieu of payment to suppliers.
- During the period 642,083 rights were issued to employees as part of the short term incentive plan and 3,609,453 rights and 855,000 options as part of the longer term incentive plan.
- During the half year 245,883 options and 620,521 rights were converted to shares.
In the opinion of the Directors, there were no other significant changes in the state of affairs of the Group that occurred during the half year under review.
3
Develop Global Limited | Interim Financial Report |
Directors' Report
Capital:
At the date of this report, The Group's current capital on issue is:
Ordinary shares | Number |
DVP* | 242,653,581 |
Unlisted performance rights | |
DVPAV | 4,380,064 |
Unlisted share rights | |
DVPAAI | 21,724 |
Unlisted options - share based payments | |
DVPAAA | 14,000,000 |
DVPAAB | 14,000,000 |
DVPAY | 1,400,000 |
DVPAAC | 200,000 |
DVPAAG | 2,215,000 |
DVPAAJ | 100,000 |
* 1,376,358 subject to escrow until 4 November 2024.
Events after the Reporting Period
There has not arisen in the interval between the end of the half year and the date of this report any item, transaction, or event of a material and unusual nature likely, in the opinion of the Directors of the Group, to significantly affect the operations of the Group, the results of those operations, or the state of affairs of the Group, in future financial years other than disclosed above.
Rounding of amounts
The company is of a kind referred to in Corporations Instrument 2016/191, issued by the Australian Securities and Investments Commission, relating to 'rounding-off'. Amounts in this report have been rounded off in accordance with that Corporations Instrument to the nearest dollar.
4
Develop Global Limited | Interim Financial Report |
Directors' Report Declaration
Directors' Report Declaration
A copy of the Auditor's Independence Declaration as required under section 307C of the Corporations Act 2001 is set out on page 6.
Signed in accordance with a resolution of the Board of Directors.
BILL BEAMENT
Managing Director
Dated this 6th day of March 2024
5
Tel: +61 8 6382 4600 | Level 9 |
Fax: +61 8 6382 4601 | Mia Yellagonga Tower 2 |
www.bdo.com.au | 5 Spring Street |
Perth, WA 6000 | |
PO Box 700 West Perth WA 6872 | |
Australia |
DECLARATION OF INDEPENDENCE BY JARRAD PRUE TO THE DIRECTORS OF DEVELOP GLOBAL LIMITED
As lead auditor for the review of Develop Global Limited for the half-year ended 31 December 2023, 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
- No contraventions of any applicable code of professional conduct in relation to the review.
This declaration is in respect of Develop Global Limited and the entities it controlled during the period.
Jarrad Prue
Director
BDO Audit (WA) Pty Ltd
Perth
6 March 2024
1
BDO Audit (WA) Pty Ltd ABN 79 112 284 787 is a member of a national association of independent entities which are all members of BDO Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit (WA) Pty Ltd and BDO Australia Ltd are members of BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation.
Develop Global Limited | Interim Financial Report |
Consolidated Statement of Profit or Loss and Other Comprehensive
Income for the Half Year Ended 31 December 2023
31 December | 31 December | ||
2023 | 2022 | ||
Note | $ | $ | |
Revenue from customers | 2 | 65,800,203 | 23,828,708 |
Other Income | 955,012 | 450,052 | |
Profit on Sale of PPE | - | 2,013,801 | |
Directors, employees, and consultants' expenses | (31,151,504) | (14,687,892) | |
Raw Material and Consumables | (21,021,928) | (9,809,113) | |
Share based payments | 10 | (4,773,245) | (536,811) |
Transport Costs | (948,308) | (678,859) | |
Finance Costs | (1,475,567) | (1,754,205) | |
Depreciation and Amortisation expenses | (9,605,556) | (3,130,015) | |
Other Expenses | (1,476,872) | (2,095,491) | |
Loss before income tax | (3,697,765) | (6,399,825) | |
Income tax expense | - | - | |
Loss after income tax expense | (3,697,765) | (6,399,825) | |
Other comprehensive income/(loss) | |||
Items that will not be reclassified to profit or loss | |||
Changes in fair value of equity instruments at fair | |||
value through other comprehensive income | (100,000) | - | |
Other comprehensive income/(loss) for the period, | |||
net of income tax | (100,000) | - | |
Total Comprehensive income/(loss) | (3,797,765) | (6,399,825) | |
Profit/(Loss) attributable to | |||
Owners of Develop Global Ltd | (3,805,818) | (6,399,825) | |
non-controlling interest | 108,053 | - | |
Total Comprehensive Profit/(Loss) attributable | (3,697,765) | (6,399,825) | |
to: | |||
Owners of Develop Global Ltd | (3,905,818) | (6,399,825) | |
non-controlling interest | 108,053 | - | |
(3,797,765) | (6,399,825) | ||
Loss per share for the half year attributable to | |||
the owners of the Group | |||
Basic loss per share (cents) | (1.77) | (3.94) |
The above Consolidated Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with the accompanying notes.
7
Develop Global Limited | Interim Financial Report | ||
Consolidated Statement of Financial Position as at 31 December 2023 | |||
31 December | 30 June | ||
2023 | 2023 | ||
Note | $ | $ | |
Assets | |||
Current assets | |||
Cash and cash equivalents | 32,657,325 | 21,769,145 | |
Trade and other receivables | 3 | 26,853,620 | 7,171,254 |
Inventories | 6,619,879 | 6,046,058 | |
Other assets | 2,395,764 | 1,877,907 | |
Total current assets | 68,526,588 | 36,864,364 | |
Non-current assets | |||
Property, plant, and equipment | 5 | 58,058,250 | 44,166,114 |
Right of use assets | 24,277,504 | 26,554,179 | |
Exploration and evaluation expenditure | 4 | 216,636,684 | 63,848,275 |
Mine properties | 6 | 83,131,455 | 68,266,641 |
Intangibles | 2,523,711 | 2,523,711 | |
Other assets | 3,600,080 | 3,577,000 | |
Total non-current assets | 388,227,684 | 208,935,920 | |
Total assets | |||
456,754,272 | 245,800,284 | ||
Liabilities | |||
Current liabilities | |||
Trade and other payables | 20,815,865 | 20,079,287 | |
Lease liabilities | 7 | 13,361,185 | 11,837,506 |
Borrowings | 7 | 3,611,362 | - |
Employee benefits | 3,196,557 | 2,417,257 | |
Provisions | 8 | 11,856,071 | 4,753,163 |
Total current liabilities | 52,841,040 | 39,087,213 | |
Non-current liabilities | |||
Lease liabilities | 7 | 11,499,178 | 16,075,642 |
Borrowings | 7 | 5,488,020 | - |
Employee benefits | 177,938 | 142,738 | |
Provisions | 17,445,179 | 16,518,525 | |
Contract liabilities | 24,689,238 | 24,359,867 | |
Total non-current liabilities | 59,299,553 | 57,096,772 | |
Total liabilities | |||
112,140,593 | 96,183,985 | ||
Net assets | |||
344,613,679 | 149,616,299 | ||
Equity | |||
Issued capital | 9 | 424,125,339 | 228,283,584 |
Reserves | 9,10 | 127,862,672 | 125,009,281 |
Accumulated losses | (207,482,384) | (203,676,566) | |
Total Equity attributable to Owners | 344,505,626 | 149,616,299 | |
Non-Controlling Interest | 108,053 | - | |
Total equity | 344,613,679 | 149,616,299 |
The above Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes.
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Develop Global LimitedInterim Financial Report
Consolidated Statement of Changes in Equity for the Half year ended
31 December 2023
Share Based | Asset | Non- | |||||
Issued | Compensation | Revaluation | Controlling | Accumulated | |||
Capital | Reserve | Reserve | Interest | Losses | Total Equity | ||
Note | $ | $ | $ | $ | $ | $ | |
Balance at 30 June | |||||||
2022 | 202,081,283 | 128,215,812 | - | - | (185,743,026) | 144,554,069 | |
Loss for the period | - | - | - | - | (6,399,825) | (6,399,825) | |
Total comprehensive | |||||||
loss for the period | - | - | - | - | (6,399,825) | (6,399,825) | |
Transactions with | |||||||
owners in their | |||||||
capacity as owners: | |||||||
Issue of securities | 9 | 630,300 | - | - | - | - | 630,300 |
Security issue costs | 9 | (45,279) | - | - | - | - | (45,279) |
Share based payments | |||||||
Expensed | 10 | - | 728,004 | - | - | - | 728,004 |
Share based payments | |||||||
Exercised | 9,10 | 70,590 | (70,590) | - | - | - | - |
Share based payments | |||||||
Expired | 10 | - | (191,193) | - | - | - | (191,193) |
Options exercised | 10 | 424,411 | - | - | - | - | 424,411 |
Issue of securities - | |||||||
Purchase of Premium | |||||||
Group | 7,726,611 | - | - | - | - | 7,726,611 | |
Balance at 31 | |||||||
December 2022 | 210,887,916 | 128,682,033 | - | - | (192,142,851) | 147,427,098 | |
Balance at 30 June | |||||||
2023 | 228,283,584 | 125,009,281 | - | - | (203,676,566) | 149,616,299 | |
Loss for the period | - | - | (100,000) | 108,053 | (3,805,818) | (3,797,765) | |
Total comprehensive | |||||||
loss for the period | - | - | (100,000) | 108,053 | (3,805,818) | (3,797,765) | |
Transactions with | |||||||
owners in their | |||||||
capacity as owners: | |||||||
Issue of securities | 9 | 53,503,581 | - | - | - | - | 53,503,581 |
Security issue costs | 9 | (1,068,901) | - | - | - | - | (1,068,901) |
Performance rights | |||||||
Expensed | 10 | - | 4,342,921 | - | - | - | 4,342,921 |
Performance rights | |||||||
Exercised | 9,10 | 1,894,802 | (1,894,802) | - | - | - | - |
Performance rights | |||||||
Expired | 10 | - | - | - | - | - | - |
Options Expensed | 10 | - | 505,272 | - | - | - | 505,272 |
Options Exercised | 9 | 165,994 | - | - | - | - | 165,994 |
Issue of securities - | |||||||
Acquisition of Essential | |||||||
Metals Ltd | 11 | 141,346,280 | - | - | - | - | 141,346,280 |
Balance at 31 | |||||||
December 2023 | 424,125,339 | 127,962,672 | (100,000) | 108,053 | (207,482,384) | 344,613,679 |
The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes.
9
Develop Global Limited | Interim Financial Report |
Consolidated Statement of Cash Flows for the Half Year Ended 31 December 2023
31 December | 31 December | |
2023 | 2022 | |
Note | $ | $ |
Cash flows from operating activities | ||
Receipts from customers | 50,696,835 | 21,729,191 |
Payments to suppliers and employees | (58,811,391) | (23,809,218) |
Interest received | 807,763 | 310,948 |
Interest paid | (1,090,128) | (367,676) |
Net cash used in operating activities | (8,396,921) | (2,136,755) |
Cash flows from investing activities | ||
Payment for purchases of plant and equipment | (7,620,843) | (3,804,388) |
Proceeds from sale of plant and equipment | 1,001 | 2,500,000 |
Payment for exploration and evaluation | ||
expenditure | (3,632,095) | (10,676,645) |
Payment for Mine Properties | (13,025,457) | |
Payment for purchase of Heron Resources Ltd | - | (448,238) |
Payment for purchase of Premium Group | - | (812,244) |
Net Cash acquired from the purchase of Essential | ||
Metals Ltd | 2,642,482 | - |
Payment for other assets | (1,000,000) | (238,934) |
Net cash used in investing activities | (22,634,912) | (13,480,449) |
Cash flows from financing activities | ||
Proceeds from issue of securities | 49,970,683 | 630,300 |
Proceeds from conversion of options into shares | 267,377 | 423,674 |
Capital raising costs | (819,912) | (86,487) |
Repayments of lease liabilities | (7,498,135) | (1,920,357) |
Net cash (used in) provided by financing | ||
activities | 41,920,013 | (952,870) |
Net increase (decrease) in cash and cash | ||
equivalents | 10,888,180 | (16,570,074) |
Cash and cash equivalents at the beginning of the | ||
period | 21,769,145 | 43,206,524 |
Cash and cash equivalents at the end of the | ||
period | 32,657,325 | 26,636,450 |
The above Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes.
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Develop Global Ltd. published this content on 07 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 06 March 2024 21:51:32 UTC.