Globe Metals & Mining : December 2020

For personal use only

GLOBE METALS & MINING LIMITED

ABN 33 114 400 609

AND CONTROLLED ENTITIES

Half Year Financial Report

31 December 2020

GLOBE METALS & MINING LIMITED

ABN 33 114 400 609

AND CONTROLLED ENTITIES

CONTENTS

For personal use only

DIRECTORS' REPORT ..............................................................................................................................	3
AUDITOR'S INDEPENDENCE DECLARATION...........................................................................................	6
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME................................................................	7
CONSOLIDATED STATEMENT OF FINANCIAL POSITION.........................................................................	8
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY .........................................................................	9
CONSOLIDATED STATEMENT OF CASH FLOWS ...................................................................................	10
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ..................................................................	11
DIRECTORS' DECLARATION ..................................................................................................................	16
INDEPENDENT AUDITOR'S REVIEW REPORT .......................................................................................	17

GLOBE METALS & MINING LIMITED

ABN 33 114 400 609

AND CONTROLLED ENTITIES

DIRECTORS' REPORT

For personal use only

The directors of Globe Metals & Mining Limited ('Globe' or 'the Company') submit the financial report of the Company and its controlled entities for the half year ended 31 December 2020.

DIRECTORS

The names of Directors who held office during or since the end of the half year:

Alice Wong	Chairperson
Alistair Stephens	Managing Director, Deputy Chairperson and Chief Executive Officer
William Hayden	Non-Executive Director
Bo Tan	Non-Executive Director
Ricky Lau	Non-ExecutiveDirector (appointed on 14 December 2020)
Alex Ko	Non-ExecutiveDirector (resigned on 14 December 2020)

Directors have held office for the entire period up to the date of this report unless otherwise stated.

COMPANY SECRETARY

Michael Fry

RESULTS

The result for the half year ended 31 December 2020 attributable to members of Globe was a net loss after tax of $0.844 Million (2019: $0.662 Million).

REVIEW OF OPERATIONS

During the half year ending 31 December 2020, Globe's main operational focus was on the advancement of its niobium project in Malawi (Africa) for which a Mineral Resource Estimate was published on 11 July 2018 totalling 68.3Mt and grading 2,830 ppm Nb2O5 and 135 ppm Ta2O5. In addition, Globe also carried out research and development into metallurgical applications that resulted in the filing of a patent, which as at the date of this report is provisional and is commercial in confidence.

Kanyika Niobium Project

During the half year, the Company continued to negotiate in good faith with the Government of Malawi in relation to a Development Agreement, which is a condition precedent to the issue of a Mining Licence for the Kanyika Niobium Project.

Globe has experienced delays in meeting with Malawi government personnel in recent months due to a second wave of the COVID-19 pandemic across Malawi and much of west Africa but remains committed to the process. As the Company has stated in various public announcements, Globe considers the Development Agreement to be final and is ready, willing and able to execute.

Also during the half year, Globe continued to seek out parties interested in off-take agreements for niobium and tantalum and explored a range of financing and investment options.

At the same time, the Company continued to examine opportunities for project enhancement, including reconfiguration of the project design. Arising from this, the mining and plant designs and engineering study components of the Feasibility Study were revised and updated to incorporate the findings from improvement programs and other engineering design changes.

The financial model underpinning the Feasibility Study has been updated for revised capital and operating costs, independently sourced, and updated sales and revenue expectations based on recent data. The key metrics arising from the financial model will be released publicly upon and subject to finalisation of the Development Agreement.

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GLOBE METALS & MINING LIMITED

ABN 33 114 400 609

AND CONTROLLED ENTITIES

DIRECTORS' REPORT (Continued)

For personal use only

Mineral Tenement Schedule

Project		Location		Status		Tenement		Globe's
				interest
Kanyika Niobium (i)		Malawi		Under		AML00026 - renewal application	100%
		application		lodged
Kanyika Exploration		Malawi		Granted		EPL0421/15R		100%

1. A Mining lease application was lodged by Globe with Malawi's Ministry of Natural Resources, Energy & Mining on 5 December 2014 covering in part the area previously covered by EPL1088/05 and was approved in June 2015 subject to the finalisation of a Development Agreement. This agreement currently remains with the Malawi Government. As required, Globe has lodged an application of the renewal of the Mining Lease previously approved (subject to the finalisation of a Development Agreement) and is recorded in the Malawi Mining Portal as AML00026, being application for mining lease number 26.

Note:	AML: Application for Mining Lease (Malawi)
	EPL: Exclusive Prospecting Licence (Malawi)

Project Location Map

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GLOBE METALS & MINING LIMITED

ABN 33 114 400 609

AND CONTROLLED ENTITIES

DIRECTORS' REPORT (Continued)

For personal use only

AUDITOR'S INDEPENDENCE DECLARATION

The auditor's independence declaration under section 307C of the Corporations Act 2001 is set out on page 6 for the half year ended 31 December 2020.

Rounding of amounts

The Company is of a kind referred to in ASIC Corporations (Rounding in Financial/Directors' Report) Instrument 2016/191, issued by the Australian Securities and Investments Commission, relating to the 'rounding off' of amounts in the directors' report. Therefore, amounts in the directors' report and the half-year financial report have been rounded off in accordance with that Instrument to the nearest thousand dollars, unless otherwise indicated.

This report is made in accordance with a resolution of directors.

_________________________________

Mr Alistair Stephens

Managing Director

Dated this 15th day of March 2021

Perth

Competent Person Statement

The information in this report that relates to Mineral Resources is extracted from the report titled "Kanyika Niobium Project - Updated JORC Resource Estimate" released to the Australian Securities Exchange (ASX) on 11 July 2018 and available to view at www.globemm.comand for which Competent Persons' consents were obtained. Each Competent Person's consent remains in place for subsequent releases by the Company of the same information in the same form and context, until the consent is withdrawn or replaced by a subsequent report and accompanying consent.

The Company confirms that is not aware of any new information or data that materially affects the information included in the original ASX announcement released on 11 July 2018 and, in the case of estimates of Mineral Resources, that all material assumptions and technical parameters underpinning the estimates in the original ASX announcement continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Persons' findings are presented have not been materially modified from the original ASX announcement.

Full details are contained in the ASX announcement released on 11 July 2018 titled "Kanyika Niobium Project

• Updated JORC Resource Estimate" available to view atwww.globemm.com
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