VDM : VMG Appendix 4D-Half Year Report

Appendix 4D

Half year report

Period ended 31 December 2018

VDM Group Limited

ABN 95 109 829 334

ASX Code: VMG

The information contained in this report relates to the following periods: Current period: half year ended 31 December 2018

Corresponding period: half year ended 31 December 2017

Results for the current period ($000)

Change from the corresponding period

Revenue from continuing operations	143	Down	57.8%
Loss from continuing operations after tax	(596)	Down	51.5%
attributable to members
Net loss for the period attributable to members	(596)	Down	51.5%
Net tangible assets:
Current	Corresponding
period	period
Net tangible liabilities per ordinary security
	(0.11)	(0.22)
at end of period (cents per share)
Dividend payments:

VDM Group does not propose to pay an interim dividend for the current period.

Supplementary Comments

Additional Appendix 4D disclosures are contained in the attached directors' report and consolidated financial statements for the period ended 31 December 2018, which include an independent

Auditor's Review Report from Hall Chadwick.

VDM GROUP LIMITED

and its Controlled Entities

ABN 95 109 829 334

INTERIM FINANCIAL REPORT

HALF YEAR ENDED 31 DECEMBER 2018

VDM GROUP LIMITED CORPORATE INFORMATION

DIRECTORS

Mr Luk Hiuming	Non-executive Chairman
Dr Hua Dongyi	Executive Director of Mining
Mr Michael Fry	Non-executive Director
COMPANY SECRETARY
Mr Michael Fry

REGISTERED AND PRINCIPAL OFFICE Suite 2, Level 2, 123 Adelaide Terrace East Perth WA 6004

Telephone [phone]

Websitehttp://www.vdmgroup.com.au

POSTAL ADDRESS

PO Box 3347

East Perth WA 6892

AUDITORS

Hall Chadwick Audit (WA) Pty Ltd 283 Rokeby Road

Subiaco WA 6008

SHARE REGISTER

Computershare Investor Services Pty Limited

GPO Box 2975

Melbourne, VIC 3001

Telephone [phone]

(outside Australia) [phone]

VDM Group Limited shares are listed on the Australian Securities Exchange (ASX)

ASX Code	VMG
ACN	109 829 334
ABN	95 109 829 334

In this report, the following definitions apply:

"Board" means the Board of Directors of VDM Group Limited

"Company" means VDM Group Limited ABN 95 109 829 334

"VDM" or "Group" means VDM Group Limited and its controlled entities

2

VDM GROUP LIMITED CONTENTS

DIRECTORS' REPORT ......................................................................... 4

AUDITOR'S INDEPENDENCE DECLARATION .......................................... 7

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME ................... 8

CONSOLIDATED STATEMENT OF FINANCIAL POSITION ......................... 9

CONSOLIDATED STATEMENT OF CASH FLOWS ................................... 10

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY ........................ 11

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ................... 12

DIRECTORS' DECLARATION ............................................................. 22

INDEPENDENT AUDITOR'S REVIEW REPORT ....................................... 23

VDM GROUP LIMITED

DIRECTORS' REPORT

FOR THE HALF YEAR ENDED 31 DECEMBER 2018

DIRECTORS' REPORT

Your directors submit their report of VDM Group Limited ("the Company") and of the Consolidated Entity, being the Company and its controlled entities ("VDM" or "the Group") for the half year ended 31 December 2018.

1.

BOARD COMPOSITION

The names and details of the directors of VDM Group Limited in office during the half year and until the date of this report are set out below. Each director was in office for this entire period unless stated otherwise.

Mr Luk Hiuming Non-executive Chairman

Appointed Non-Executive Director on 21 March 2014, appointed Non-Executive Chairman on 29 January 2015

Member of the Audit & Risk Committee

Dr Hua Dongyi

Executive Director of Mining

Appointed Director on 28 August 2013, appointed Managing Director on 9 September 2013, appointed Executive Chairman and Interim CEO on 29 November 2013, appointed Managing Director and CEO on 29 January 2015, appointed Executive Director of Mining on 1 March 2016.

Member of the Audit & Risk Committee

Mr Michael Fry

Non-executive Director (independent)

Appointed 3 June 2011

Chairman of the Audit & Risk Committee

COMPANY SECRETARY:

Mr Michael Fry Appointed 9 February 2018

2.

NATURE AND PRINCIPAL ACTIVITIES

VDM is comprised of 3 operating divisions:

VDM Mining: mining exploration, development and operation in Africa and Latin America. VDM Construction: engineering, procurement and construction.

VDM Trading: procurement and trading of raw materials and commodities.

Business activities during the period principally related to:

• • exploration activity at the Cachoeiras do Binga copper project located in the Republic of Angola (Cachoeiras do Binga) supported by VDM's project partners and the Government of Angola; and

• • investigation of other project opportunities connected with VDM's Mining, Construction and Trading divisions.

The business activities of the comparative period principally related to: 1) exploration activities at Cachoeiras do Binga; and 2) supply of imported structural steel.

3.

OPERATING AND FINANCIAL REVIEW

The Mining division worked with its project partners and the Government of Angola to address the safety hazards at Cachoeiras do Binga which enabled the commencement of exploration activities.

In June 2018 VDM announced that the first phase of drilling at CdB had commenced and would comprise of up to 5,000 metres of diamond drilling. The announcement advised that the program had been designed to confirm and follow-up exploration results from 1973 and earlier, which confirmed the existence of copper mineralisation.