Speciality Metals International Limited Annual Report 2020

54 Speciality Metals International Limited Annual Report 2020 Notes to the Consolidated Financial Statements continued NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Page | 55 21. STATEMENT OF CASH FLOWS Reconciliation of net cash outflow from operating activities to operating loss after income tax 2020 $ 2019 $ (a) Operating profit / (loss) after income tax (3,015,680) 3,808,863 Depreciation 219,655 14,510 Share based payments expense 45,000 - Performance rights expense - 325,481 Gain on disposal of assets - (212,434) Loss on disposal of assets 8,564 - Share issue cost accruals - (166,800) Impairment reversal of capitalised exploration & evaluation assets - (5,635,331) Impairment of capitalised exploration and evaluation assets 140,855 - (Revaluation) Devaluation of investment to market value (773) 5,027 Unrealised foreign exchange (gains) losses 82,142 9,795 Realised foreign exchange (gains) losses capitalised 5,793 - R&D Tax Offset capitalised portion 4,241 - Change in assets and liabilities: Decrease (Increase) in receivables (109,884) (36,633) Decrease (Increase) in other assets (380,607) (358,266) Increase/(decrease) in trade and other creditors 52,373 618,661 Net cash outflow from operating activities (2,948,321) (1,627,127) (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 2020 comprised: Cash assets 2,989,859 217,962 Cash on hand 2,989,859 217,962 22. CONTRACT LIABILITIES 2020 $ 2019 $ Contract Liability - Sublease 1 Current Non-current 125,818 1,784,638 - 1,911,911 1,910,456 1,911,911 Contract Liability - Offtake 2 Balance at beginning of the year Plus: Offtake Final Contribution Less: Unrealised Foreign Exchange Loss 2,134,140 355,685 57,780 2,134,140 - - 2,547,615 2,134,140 1 Mt Carbine Sublease Rent prepaid to Mt Carbine Quarries Pty Ltd as per the Retreatment Operations Sublease Agreement between Mt Carbine Quarries Pty Ltd, CRONIMET Australia Pty Ltd and Mt Carbine Retreatment Pty Ltd. 2 The Company’s wholly owned subsidiary and 50% unincorporated joint venture partner, Mt Carbine Retreatment Pty Ltd’s, Offtake Advance recognition. The Loan is denominated in USD and the terms and repayment of this advance are governed by the Offtake Advance Agreement between CRONIMET Asia Pte Ltd, CRONIMET Australia Pty Ltd and Mt Carbine Retreatment Pty Ltd.