Globe Metals & Mining : Half Year Accounts 2018/2019

GLOBE METALS & MINING LIMITED

ABN 33 114 400 609

AND CONTROLLED ENTITIES

Half Year Financial Report

31 December 2018

CONTENTS

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 .................................................................................................................. 19

INDEPENDENT AUDITOR'S REVIEW REPORT ....................................................................................... 20

DIRECTORS' REPORT

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 2018.

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
Alex Ko	Non-Executive Director

Directors have held office for the entire period and to date of this report.

COMPANY SECRETARY

Michael Fry

RESULTS

The result for the half year ended 31 December 2018 attributable to members of Globe was a net loss after tax of $0.818 Million (2017: $0.691 Million).

REVIEW OF OPERATIONS

During the half year ending 31 December 2018, Globe's main operational focus was on the advancement of its niobium project in Malawi (Africa).

Kanyika Niobium Project

During the half year, the Company continued to seek 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 Definitive Feasibility Study were revised and updated to incorporate the findings from improvement programs and other engineering design changes.

The financial model underpinning the Definitive Feasibility Study was also updated for revised capital and operating costs, independently sourced, and updated sales and revenue expectations based on recent data.

The financial model is subject to finalisation of a Development Agreement, which was further progressed during the half year and is currently with the Malawi Government.

DIRECTORS' REPORT (Continued)

Mineral Tenement Schedule

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

(i)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

AND CONTROLLED ENTITIES DIRECTORS' REPORT (Continued)

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 2018.

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 2019 Perth