Speciality Metals International Limited Annual Report 2019

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Page | 48 18. SUBSEQUENT EVENTS There have been no material events subsequent to 30 June 2019 that have not previously been reported other than: - On 2 July 2019 the Company announced that it had completed the acquisition of Mt Carbine Quarries Pty Ltd, an entity that owns and operates the Mt Carbine Quarry and holds Mining Leases ML 4867 and M 4919. The Company also advised that it would be undertaking a capital raise via a pro-rata non-renounceable shareholder entitlement offer to raise up to approximately $2.9 million. The offer entitles eligible shareholders to acquire 1 new share for every 5 existing shares held in Speciality Metals at $0.018 cents per share. The Offer was fully underwritten by Rymill Global Venture Ltd. - On 26 July 2019 the Company announced that its recent underwritten pro-rata non-renounceable 1 for 5 entitlement offer closed at 5.00 pm on 23 July 2019 with a total of 112,733,514 shares being placed raising $2,029,203. A further 46,888,236 shortfall shares totalling $843,988, remained after the close of the offer which were subscribed in full by Rymill Global Ventures Ltd as per the Underwriting Agreement. In addition, vesting conditions were met for 25,000,000 Performance Rights which were issued to Directors and identified in their respective Appendix 3Ys. All shares were issued on 2 August 2019 (refer ASX Announcement “Appendix 3B and Cleansing Notice”). - On 28 August 2019 the Company announced the appointment of two new Directors following the completion of the Acquisition of Mt Carbine Quarries Pty Ltd namely Mr Oliver Kleinhempel, a representative of Cronimet and Mr Yeo Zui Pei. Mr Roland Nice resigned as a Director as part of the Board changes. 19. STATEMENT OF CASH FLOWS Reconciliation of net cash outflow from operating activities to operating loss after income tax 2019 $ 2018 $ (a) Operating profit / (loss) after income tax 3,808,863 (1,478,746) Depreciation 14,510 1,101 Share based payments expense 5,575 Performance rights expense 325,481 3,771 Gain on disposal of assets (212,434) (12,727) Loss on disposal of assets - 491 Share issue cost accruals (166,800) - Impairment reversal capitalised exploration & evaluation (5,635,331) - Deferred exploration and evaluation assets written down - - (Revaluation) Devaluation of investment to market value 5,027 (3,996) Share based creditor payments - (7,894) Unrealised foreign exchange (gains) losses 9,795 - Loss on revaluation of derivative financial asset - 67,441 Change in assets and liabilities: Decrease (Increase) in receivables (36,633) 27,275 Decrease (Increase) in other assets (358,266) (1,800) Increase/(decrease) in trade and other creditors 618,661 30,742 Net cash outflow from operating activities (1,627,127) (1,368,767) (b) For the purpose of the Statement of Cash Flows, cash includes cash on hand, at bank, deposits and bank bills used as part of the Company’s cash management function. The Company does not have any unused credit facilities. The balance at 30 June 2019 comprised: Cash assets 217,962 602,675 Cash on hand 217,962 602,675