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International Coal Limited
INTERNATIONAL COAL LIMITED (ABN 65 149 197 651)
FINANCIAL REPORT FOR
THE HALF YEAR ENDED
31 DECEMBER 2013
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International Coal Limited ABN 65 149 197 651 and Controlled Entities
Interim Financial Report for the Half Year Ended 31 December 2013
Corporate Directory
ABN 65 149 197 651
Directors
Mr John Lester — Non Executive Chairman
Mr Hugh Dai — Executive Director
Mr Noel Halgreen — Non Executive Director
Company Secretary
Ms Kate O'Donohue
Company Matters
Registered Office
ANZ Bank Building
Level 15, 324 Queen Street
Brisbane
Queensland 4000
Principal Place of Business
ANZ Bank Building
Level 15, 324 Queen Street
Brisbane
Queensland 4000
Share Registry
Link Market Services Limited
Level 15,
324 Queen Street
Brisbane
Queensland 4000
Solicitors
CBP Lawyers
Level 5
307 Queen Street
Brisbane
Queensland 4000
Auditors
Hall Chadwick
Level 40
2 Park Street
Sydney
New South Wales 2000
Bankers
Commonwealth Bank of Australia Ltd
Website
www.intercoal.com.au
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International Coal Limited ABN 65 149 197 651 and Controlled Entities
Interim Financial Report for the Half-year Ended 31 December 2013
Contents
Corporate Directory 2
Director's Report 4
Directors 4
Result 4
Review of Operations 4
Bundaberg Project 4
Consuelo Project 5
South Blackall Project 5
Corporate Activities 6
Competent Person's Statement 6
Auditor's Independence Declaration 8
Consolidated Statement of Profit or Loss and other Comprehensive Income for Half Year Ended 31 December 2013 9
Consolidated Statement of Financial Position for Half Year Ended 31 December 2013 10
Consolidated Statement of Changes in Equity for the Half Year Ended 31 December 2013.... 11
Consolidated Statement of Cash Flows for Half Year Ended 31 December 2013 12
Notes to the Half Year Financial Statements 13
Directors' Declaration 15
Independent Audit Review Report 16
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International Coal Limited ABN 65 149 197 651 and Controlled Entities
Interim Financial Report for the Half-year Ended 31 December 2013
Director's Report
Directors The name of directors who held office during or since the end of the half year reporting period are:
John Lester — Non Executive Chairman Hugh Dai — Executive Director Noel Halgreen — Non Executive Director
Result The loss after tax for the half year ended 31 December 2013 was $424,613.
Review of Operations
31 st January 2014: International Coal Limited (ASX: ICX) continued to receive positive results from its key coking coal projects at Bundaberg and Consuelo. The second half of 2013 saw the Company make significant progress drilling and exploring these key projects and lay the groundwork for a successful 2014.
At 1 January, 2014, ICX and its subsidiaries (Gen Resources and Great White Nominees) held the following tenements:
Bundaberg Project (Maryborough Basin)
EPC 2194 (75%), EPC 2195 (75%), EPC 2196 (75%)
Consuelo Project (Bowen Basin)
EPC 2332 (20%) EPC 2318 (20%)
South Blackall Project (Eromanga Basin)
EPC 2197 (100%)
Don Juan Project (Surat Basin)
EPC 2286 (46%)
Other Projects
EPC 2861 (100%)
During the quarter, ICX retained all of its core granted tenements. Exploration Permit for Coal (EPC 2327) in the Consuelo Project exited the native title notification period in late December 2013. Grant is expected within 30 days of the end of this notification period (i.e. January 2014).
During the quarter, exploration activities focused on the Bundaberg and Consuelo Project with desktop studies and compliance work carried out on the remaining tenements.
Bundaberg Project The Company completed drilling at Bundaberg (Figure 1) during the reporting period as scheduled and the results were released on 17 December 2013. An inferred Resource of 37.9Mt of hard coking coal was reported following the drilling of two exploration holes and an update of the related geological model (Figure 1). This was an increase of 33% from previously announced results. The Inferred Resource was reported to the new reporting standards required by the ASX and Joint Ore Reserve Committee (JORC 2012). International Coal Limited is not aware of any new information or data that materially affects the information included in the announcement of 17 December 2013. Further, that in regard to the estimates provided in that announcement, all material assumptions and technical parameters underpinning the estimates in that announcement continue to apply and have not materially changed.
These results were from the same seams that were sampled and found to have hard coking coal characteristics comparable to hard coking coal mines in the Bowen Basin.
The Company is working with Fox Resources who hold ground adjacent to the south of EPC 2196. The two companies developed a data sharing arrangement to enable the development of the resource as a whole.
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International Coal Limited ABN 65 149 197 651 and Controlled Entities
Interim Financial Report for the Half-year Ended 31 December 2013
Consuelo Project
EPC 2332 and 2318 (Consuelo Project) were granted in July 2013 and EPC 2327 has been granted subsequent to the reporting period
A desktop geological review was compiled on the Consuelo Project (Figure 1) in the southern Bowen Basin near Rolleston. The Company currently holds a 20% interest (Coal Face Resources holds the remaining 80%) in the Consuelo Project and is currently exercising its option to earn in up to 71% of the project.
The studies substantiated the potential for semi-soft coking and thermal coal products. The review indicated that EPC 2327 has the highest potential for coal at open cut depths of all the Consuelo Project tenements (EPC 2327, 2318, 2332). The new studies have uncovered drilling and seismic information that suggests there is potential for coal seam(s) up to 4m thick to occur between 45m and 100m in the northwest of the tenement.
The Company is currently earning a major stake (up to 71%) in the Consuelo Project - a potentially large semi-soft coking and thermal coal prospect in the Bowen Basin, one of the world's premier coal basins. The Company intends to commence drilling at the Consuelo Project as soon as landholder negotiations and clearance work is completed.
Early discussions with rail and port operators for the Consuelo and Bundaberg projects also progressed during the reporting period as part of the ICX's strategy to fast track the development of these projects.
South Blackall Project
The Company continues to research options for the development of its South Blackall Project (Figure 1) in the Eromanga Basin and remains committed to the commercialisation of this large thermal coal asset.
Improvements in our operations saw a continued reduction in our administration costs from the previous quarter. The Company remains in a position to progress exploration on our projects and expects to produce further results on its key project in coming months.
The Board and management remain in discussions with strategic investors and continue to look for other project opportunities that fit International Coal's strategic focus on achieving coal production by 2017 or earlier.
Other Projects
Joint venture work at Don Juan (EPC 2286) focussed on further desktop studies and land clearances, primarily led by joint venture partner Coal Face Resources Pty Ltd. The company is reviewing options for commercialising this project.
An option for purchase was negotiated with Blackall Capital Pty Ltd for non-core assets (EPC 2702 and 2861) near Emerald following the grant of EPC 2702. This option has resulted in the sale of EPC 2702 in December 2013. Proceeds of the sale of these assets will be used to fund development of our core projects (Consuelo and Bundaberg) and will be included in the financial statements for the next reporting period.
These decisions are consistent with our continued effort to focus on our core assets at Consuelo and Bundaberg.
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International Coal Projects
Location Map
TAROOM • D017 Juan Project South Steckel, Project
WANDOAN
• CHARLEVILLE • ROMA QHILPIE
700000 m t0 n 900000 rvt
• BLACKWATER
A S
GMR Rail Proposal
Land as tenure
Granted
Con7POlng APPtcal. Exulornon PEIT,0 Proposal
Land
Ocean
Sedimentary INN &IS
Bowen stein
Surat Basin
E190.003 Bests
Marybefou0117 Been
Infrastructure
Coakhautape railway Bat Proposed refreay One (approarnate)
NW road
Inehway
sheeny oce e. tamuji9 tan
' MILES
Surat Rao Project
• International „jest/Jo oa.00
' ST. GEORGE
International Coal Limited ABN 65 149 197 651 and Controlled Entities
Interim Financial Report for the Half-year Ended 31 December 2013
Figure 1 — Location of key projects held or part held by International Coal Limited and related companies
Corporate Activities
Corporate activity continued to focus on marketing the Company and managing its reporting and compliance
activities. Management continued to achieve improvements in operational efficiencies during the reporting period through stronger pre-expenditure controls and negotiation on contractor rates following the contraction of the coal industry through 2012-2013. These efforts saw the Company maintain a strong financial position into 2014.
Our corporate marketing activities were aimed at maintaining the Company's profile and key stakeholder relationships. A number of Asian investors continued to express an interest in the Company and its coal assets. The Board continues to develop these relationships for the Company's long term benefit, particularly as our projects move beyond exploration toward mine development.
COMPETENT PERSON'S STATEMENT
All JORC Inferred Resource and Exploration Target estimates discussed in this report have been released previously. Technical information relating to the coal projects in this announcement has been compiled by several technical specialists and reviewed and signed-off by Mr Mark Biggs, Principal Geologist formerly of Moultrie Database and Modelling and now of ROM Resources. Mr Biggs is a member of the Australasian Institute of Mining and Metallurgy and has over 29 years of experience relevant to the style and type of coal
mineralisation under consideration and to the activity which is being undertaken to qualify as a Competent Person as defined by the Australasian Code for Reporting of Mineral Resources and Reserves (JORC Code 2012).
The estimates of the Coal Resources presented in this Report are considered to be a true reflection of the Coal Resources as at 30 th November 2013 and have been carried out in accordance with the principles and guidelines of the JORC Code 2012. With respect to Exploration Targets and Inferred Resource estimates mentioned for South Blackall and Consuelo, this information was prepared and first disclosed under the JORC Code 2004. It has not been updated since to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported.
Finally, Mr Mark Biggs consents to the inclusion in this announcement of the matters based on this information in the form and context in which it appears.
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International Coal Limited ABN 65 149 197 651 and Controlled Entities
Interim Financial Report for the Half-year Ended 31 December 2013
Events Subsequent to reporting date
No matters or circumstances have arisen since the end of the financial year which significantly affected or could significantly affect the operations of the Group, the results of the operations, or the state of affairs of the Group in future financial years.
Rounding of Amounts
The consolidated group has applied the relief available to it in ASIC Class Order 98/100 and accordingly certain amounts in the financial report and the directors report have been rounded off to the nearest $1,000.
Auditor's Independence Declaration
The lead auditor's independence declaration under s 307C of the Corporations Act 2001 is set out on
page 8 for the half-year ended 31 December 2013.
This directors' report is signed in accordance with a resolution of the Board of Directors.
Directo
Dated this day of 2014
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A4 C HALL CHADWICK Level 40, 2 Park Street Sydney, NSW 2000
HALL CHADWICK r2 Chartered Accountants and Business Advisers
SYDNEY
INTERNATIONAL COAL LIMITED AND CONTROLLED ENTITIES ABN 65 149 197 651
AUDITOR'S INDEPENDENCE DECLARATION UNDER S 307C OF THE CORPORATIONS ACT 2001 TO THE
DIRECTORS OF INTERNATIONAL COAL LIMITED
DREW TOWNSEND PARTNER 12 March 2014
Level 40 2 Park Street Sydney NSW 2000 Australia
GPO Box 3555 Sydney NSW 2001
Ph: (612) 9263 2600 Fx : (612) 9263 2800
NEWCASTLE
Ph: (612) 4969 5521 Fx : (612) 4969 6059
PARRAMATTA
Ph: (612) 9687 2100 Fx : (612) 9687 2900
PENRITH
Ph: (612) 4721 8144 Fx : (612) 9263 2800
MELBOURNE
Ph: (613) 8678 1600 Fx : (613) 8678 1699
PERTH
Ph: (618) 6557 6200 Fx : (618) 9218 8950
BRISBANE
Ph: (617) 3211 1250 Fx: (617) 3211 1249
GOLD COAST
Ph: (617) 5538 2322 Fx : (617) 5526 8599
I declare that, to the best of my knowledge and belief, during the half-year ended 31 December 2013 there has been no contraventions of:
a. the auditor independence requirements as set out in the Corporations Act 2001 in relation to the review; and
b. any applicable code of professional conduct in relation to the review.
A member of AGN International Ltd, a worldwide association of separate and independent accounting and consulting firms
www.hallchadwick.com.au
SYDNEY • NEWCASTLE • PARRAMATTA • PENRITH • MELBOURNE • PERTH • BRISBANE • GOLD COAST
Liability limited by a scheme approved under Professional Standards Legislation. Page 8 of 17
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International Coal Limited ABN 65 149 197 651 and Controlled Entities
Interim Financial Report for the Half-year Ended 31 December 2013
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE
INCOME FOR THE HALF-YEAR ENDED 31 DECEMBER 2013
Consolidated Group
31/12/2013
$000
31/12/2012
$000
Revenue - Interest Income 36 93
Administration expenses (98) (179)
Compliance expenses (42) (37)
Consultancy costs (171) (101)
Employee benefit expenses (119) (564)
Exploration costs (18)
Insurance costs (13) (25)
Loss before income tax (425) (813)
Income tax expense
Loss for the period (425) (813)
Other Comprehensive income
Total Comprehensive Loss for the period (425) (813)
Basic earnings per share (cents) ($0.003) ($0.006)
Diluted earnings per share (cents) ($0.002) ($0.006)
The accompanying notes form part of these financial statements.
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International Coal Limited ABN 65 149 197 651 and Controlled Entities
Interim Financial Report for the Half-year Ended 31 December 2013
CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2013
ASSETS
CURRENT ASSETS
Cash and cash equivalents
Trade and other receivables
TOTAL CURRENT ASSETS
NON-CURRENT ASSETS
Exploration and Evaluation Assets
Mineral Assets
Plant & Equipment
Intangible Assets
TOTAL NON-CURRENT ASSETS
TOTAL ASSETS
LIABILITIES
CURRENT LIABILITIES
Trade and other payables
TOTAL CURRENT LIABILITIES
NON-CURRENT LIABILITIES
TOTAL NON-CURRENT LIABILITIES
TOTAL LIABILITIES
NET ASSETS
EQUITY
Issued capital
Reserves
Retained earnings
TOTAL EQUITY
Note
5
Consolidated Group
31/12/2013 30/06/2013
$000 $000
1,574 1,459
56 778
1,630 2,237
3,318
8,648
1
1
3,271
7,790
2
1
11,968 11,064
13,598 13,301
542 690
542 690
542 690
13,056 12,611
15,122
2,009
(4,075)
14,309
1,952
(3,650)
13,056 12,611
The accompanying notes form part of these financial statements.
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International Coal Limited ABN 65 149 197 651 and Controlled Entities
Interim Financial Report for the Half-year Ended 31 December 2013
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE HALF-YEAR ENDED 31 DECEMBER 2013
Ordinary Option
Consolidated Group Shares Retained Earnings Reserve Total
$000 $000 $000 $000
Balance at 1 July 2013 14,309 (3,650) 1,952 12,611
Loss for the period (425) (425)
Total comprehensive income for the period - (425) (425)
Transactions with owners, in their capacity as owners, and other transfers
Shares issued during the period 813 - 813
Options granted during the period - 57 57
Total transactions with owners and
other transfers 813 - 57 870
Balance at 31 December 2013 15,122 (4,075) 2,009 13,056
Ordinary Option
Consolidated Group Shares Retained Earnings Reserve Total
$000 $000 $000 $000
Balance at 1 July 2012 13,574 (2,385) 1,948 13,137
Loss for the period - (813) - (813)
Total comprehensive income for the
period - (813) - (813)
Transactions with owners, in their capacity as owners, and other transfers
Shares issued during the period 600 - 600
Options granted during the period - -
Total transactions with owners and
other transfers 600 - 600
Balance at 31 December 2012 14,174 (3,198) 1,948 12,924
The accompanying notes form part of these financial statements.
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International Coal Limited ABN 65 149 197 651 and Controlled Entities
Interim Financial Report for the Half-year Ended 31 December 2013
CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE HALF YEAR ENDED 31 DECEMBER 2013
31/12/2013 31/12/2012
$000 $000
CASH FLOWS FROM OPERATING ACTIVITIES
Payments to suppliers and employees (548) (937)
Sundry Income 18
Interest and other receipts 22 93
Income Tax R&D Refund 708
Net cash (used in)/provided by operating activities 182 (826)
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for Mineral Assets (126)
Payments for Exploration and Evaluation Assets (67) (777)
Net cash used in investing activities (67) (903)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issue of shares
Cost of issue of shares
Net cash (used in)/provided by financing activities
Net increase/(decrease) in cash held 115 (1,729)
Cash and cash equivalents at beginning of period 1,459 3,965
Cash and cash equivalents at end of period 1,574 2,236
The accompanying notes form part of these financial statements.
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International Coal Limited ABN 65 149 197 651 and Controlled Entities
Interim Financial Report for the Half-year Ended 31 December 2013
NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2013
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Preparation
These general purpose interim financial statements for half-year reporting period ended 31 December 2013 have been prepared in accordance with requirements of the Corporations Act 2001 and Australian Accounting Standard AASB 134: Interim Financial Reporting. The Group is a for-profit entity for financial reporting purposes under Australian Accounting Standards.
This interim financial report is intended to provide users with an update on the latest annual financial statements of International Coal Limited and its controlled entities (referred to as the
consolidated group or the Group). As such, it does not contain information that represents relatively insignificant changes occurring during the half-year within the Group. It is therefore
recommended that this financial report be read in conjunction with the annual financial statements of the Group for the year ended 30 June 2013, together with any public announcements made during the following half-year.
Significant Accounting Policies
(a) Changes in accounting policies and disclosures
1. Basis of consolidation
Adoption of AASB 10 resulted in change in the definition of control. Under the new definition, the group controls an entity when the group is exposed to, or has rights to, variable returns from its involvement with
the entity and has the ability to affect those returns through its power over the entity.
The consolidated group has reviewed its investments in other entities to assess whether the consolidated treatment in relation to these entities is different under AASB 10 than under the previous applicable standard. No differences were found and therefore no adjustments to any of the carrying amounts in the financial statements are required as a result of adoption of AASB 10.
(b) New and amended standards and interpretations
The Group has adopted the following new and revised Australian Accounting Standards from 1 July 2013 together with consequential amendments to other Standards:
AASB 10: Consolidated Financial Statements
AASB 127: Separate Financial Statements (August 2011)
AASB 11: Joint Arrangements
AASB 128: Investments in Associates and Joint Ventures (August 2011)
AASB 12: Disclosure of Interests in Other Entities
AASB 2011-7: Amendments to Australian Accounting Standards arising from the Consolidation and Joint Arrangements Standards; and
AASB 2012-10: Amendments to Australian Accounting Standards — Transition Guidance and Other Amendments.
These Standards became mandatorily applicable from 1 January 2013 and became applicable to the Group for the first time in the current half-year reporting period 1 July 2013 to 31 December 2013. The Group has applied these Accounting Standards retrospectively in accordance with AASB 108: Accounting Policies, Changes in Accounting Estimates and Errors and the specific transition requirements in AASB 10 and AASB 11.
The adoption of these standards has not had a material impact on the financial statements of the consolidated group. Where required, new disclosures introduced by these standards have been included in these interim financial statements.
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International Coal Limited ABN 65 149 197 651 and Controlled Entities
Interim Financial Report for the Half-year Ended 31 December 2013
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D)
Going Concern
The consolidated entity has recorded a net loss of $424,613 for the half year ended 31 December 2013,
and has no ongoing source of operating income. At 31 December 2013 the consolidated entity had net assets of $13,055,292.
The financial report has been prepared on a going concern basis which assumes the realisation of assets and extinguishment of liabilities in the normal course of business and at the amounts stated in the financial statements.
The directors believe the going concern basis is appropriate for the following reasons:
• At 31 December 2013 the consolidated entity had cash and cash equivalents of $1,574,078.
• The directors have prepared cash flow forecasts which include a further capital raising planned for the second half of 2014 to meet all planned expenditure programs.
Based on the above, the directors are satisfied that the consolidated entity will be able to fund its operations and continue as going concern, and it is appropriate that the financial statements have been prepared on that basis.
NOTE 2: CONTINGENT LIABILITIES
The company had no contingent liabilities at 31 December 2013.
NOTE 3: SEGMENT INFORMATION
International Coal Limited operates within the exploration industry in Queensland, Australia
NOTE 4: SUBSEQUENT EVENTS
No matters or circumstances have arisen since the end of the financial year which significantly affected or could significantly affect the operations of the Group, the results of the operations, or the state of affairs of the Group in future financial years.
NOTE 5: CONTRIBUTED EQUITY
31/12/2013 30/06/2013
$000 $000
a) Issued and fully paid shares 15,122 14,309
15,122 14,309
b) Movement in Issued and fully paid shares Number of $'000 Shares
Balance at Beginning of the period 138,730,003 14,309
Issues under Agreement with Coal Face Resources Pty Ltd 10 October 2013 14,250,000 813
Balance at the end of the period 152,980,003 15,122
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International Coal Limited ABN 65 149 197 651 and Controlled Entities
Interim Financial Report for the Half-year Ended 31 December 2
DIRECTORS' DECLARATION
In accordance with a resolution of the directors of International Coal Limited, the directors of the company declare that:
1. The financial statements and notes, as set out on pages 9 to 14 are in accordance with the Corporations Act 2001, including:
a, complying with Accounting Standard AASB 134: Interim Financial Reporting; and
b, giving a true and fair view of the consolidated entity's financial position as at 31 December 2013 and of its performance for the half-year ended on that date.
2. In the directors' opinion there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable.
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HALL CHADWICK r2 Chartered Accountants and Business Advisers
INTERNATIONAL COAL LIMITED AND CONTROLLED ENTITIES ABN 65 149 197 651
INDEPENDENT AUDITOR'S REVIEW REPORT TO THE MEMBERS OF INTERNATIONAL COAL LIMITED
Report on the Half-year Financial Report
We have reviewed the accompanying half-year financial report of International Coal Limited, which comprises the consolidated statement of financial position as at 31 December 2013, the consolidated statement of profit or loss and other comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows for the half-year ended on that date, notes comprising a summary of significant accounting policies and other explanatory information and the directors' declaration.
Directors' Responsibility for the Half-Year Financial Report
The directors of International Coal Limited are responsible for the preparation of the half-year financial report that gives a true and fair view in accordance with Australian Accounting Standards (including Australian Accounting Interpretations) and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the half-year financial report that is free from material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express a conclusion on the half-year financial report based on our review. We conducted our review in accordance with Auditing Standard on Review Engagements ASRE 2410: Review of a Financial Report Performed by the Independent Auditor of the Entity, in order to state whether, on the basis of the procedures described, we have become aware of any matter that makes us believe that the half-year financial report is not in accordance with the Corporations Act 2001 including: giving a true and fair view of International Coal Limited financial position as at 31 December 2013 and its performance for the half-year ended on that date, and complying with Accounting Standard AASB 134: Interim Financial Reporting and the Corporations Regulations 2001. As the auditor of International Coal Limited, ASRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual financial report.
A review of a half-year financial report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and review procedures. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
SYDNEY
Level 40 2 Park Street Sydney NSW 2000 Australia
GPO Box 3555 Sydney NSW 2001
Ph: (612) 9263 2600 Fx : (612) 9263 2800
NEWCASTLE
Ph: (612) 4969 5521 Fx : (612) 4969 6059
PARRAMATTA
Ph: (612) 9687 2100 Fx : (612) 9687 2900
PENRITH
Ph: (612) 4721 8144 Fx : (612) 9263 2800
MELBOURNE
Ph: (613) 8678 1600 Fx : (613) 8678 1699
PERTH
Ph: (618) 6557 6200 Fx : (618) 9218 8950
BRISBANE
Ph: (617) 3211 1250 Fx: (617) 3211 1249
GOLD COAST
Ph: (617) 5538 2322 Fx : (617) 5526 8599
Independence
In conducting our review, we have complied with the independence requirements of the Corporations Act 2001.
A member of AGN International Ltd, a worldwide association of separate and independent accounting and consulting firms
www.hallchadwick.com.au
SYDNEY • NEWCASTLE • PARRAMATTA • PENRITH • MELBOURNE • PERTH • BRISBANE • GOLD COAST
Liability limited by a scheme approved under Professional Standards Legislation. Paae 16 of 17
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HALL CHADWICK a INTERNATIONAL COAL LIMITED AND CONTROLLED ENTITIES
ABN 65 149 197 651 INDEPENDENT AUDITOR'S REVIEW REPORT TO THE
MEMBERS OF INTERNATIONAL COAL LIMITED
Conclusion
Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the half-year financial report of International Coal Limited is not in accordance with the Corporations Act 2001 including:
(I)
giving a true and fair view of International Coal Limited's financial position as at 31 December 2013 and of its performance for the half-year ended on that date; and
(ii) complying with AASB 134: Interim Financial Reporting and the Corporations Regulations 2001.
Emphasis of Matter
Without modifying our conclusion, we draw attention to Note 1 in the half year financial report which indicates that the consolidated entity incurred a net loss of $424,613 and has no ongoing source of operating income for the half year ended 31 December 2013. These conditions, along with other matters as set forth in Note 1, indicate the existence of a material uncertainty which may cast significant doubt about the consolidated entity's ability to continue as a going concern and therefore, the consolidated entity may be unable to realise its assets and discharge its liabilities in the normal course of business and at the amounts stated in the financial report.
HALL CHADWICK Level 40, 2 Park Street
Sydney, NSW 2000
DREW TOWNSEND
PARTNER
12 March 2014
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