Annual Report - 30 June 2016

1.       Corporate Information

The financial report of Harvest Minerals Limited ("Harvest Minerals" or "the Company") and its controlled entities ("the Group") for the year ended 30 June 2016 was authorised for issue in accordance with a resolution of the Directors on 12 September 2016.

               

Harvest Minerals Limited is a company limited by shares incorporated in Australia whose shares are publicly traded on the AIM Market of the London Stock Exchange.

 

The nature of the operations and the principal activities of the Group are described in the Directors' Report.

 

2.             Summary of Significant Accounting Policies

(a)   Basis of Preparation

The financial report is a general-purpose financial report, which has been prepared in accordance with Australian Accounting Standards, Australian Accounting Interpretations, other authoritative pronouncements of the Australian Accounting Standards Board and the Corporations Act 2001. The Group is a for profit entity for financial reporting purposes under Australian Accounting Standards.

 

The financial report has been prepared on an accrual basis and is based on historical costs, modified, where applicable, by the measurement at fair value of selected non-current assets, financial assets and financial liabilities. Material accounting policies adopted in preparation of this financial report are presented below and have been consistently applied unless otherwise stated.

 

The presentation currency is Australian dollars.

 

(b)   Parent entity information

In accordance with the Corporations Act 2001, these financial statements present the results of the consolidated entity only. Supplementary information about the parent entity is disclosed in note 26.

 

(c)   Compliance statement

The financial report complies with Australian Accounting Standards as issued by the Australian Accounting Standards Board and International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board.

 

(d)   New accounting standards and interpretations issued but yet effective

The following applicable accounting standards and interpretations have been issued or amended but are not yet effective.  These standards have not been adopted by the Group for the year ended 30 June 2016 and no change to the Group's accounting policy is required.

 

Reference	Title	Summary	Impact on Group's financial report	Application date for Group
AASB 9	Financial Instruments	AASB 9 includes requirements for the classification and measurement of financial assets.  It was further amended by AASB 2010-7 to reflect amendments to the accounting for financial liabilities. These requirements improve and simplify the approach for classification and measurement of financial assets compared with the requirements of AASB 139. The main changes are described below. (a)     Financial assets that are debt instruments will be classified based on (1) the objective of the entity's business model for managing the financial assets; (2) the characteristics of the contractual cash flows.  (b)     Allows an irrevocable election on initial recognition to present gains and losses on investments in equity instruments that are not held for trading in other comprehensive income. Dividends in respect of these investments that are a return on investment can be recognised in profit or loss and there is no impairment or recycling on disposal of the instrument. (c)     Financial assets can be designated and measured at fair value through profit or loss at initial recognition if doing so eliminates or significantly reduces a measurement or recognition inconsistency that would arise from measuring assets or liabilities, or recognising the gains and losses on them, on different bases. (d)     Where the fair value option is used for financial liabilities the change in fair value is to be accounted for as follows: ►   The change attributable to changes in credit risk is presented in other comprehensive income (OCI) ►   The remaining change is presented in profit or loss If this approach creates or enlarges an accounting mismatch in the profit or loss, the effect of the changes in credit risk are also presented in profit or loss. Consequential amendments were also made to other standards as a result of AASB 9, introduced by AASB 2009-11 and superseded by AASB 2010-7 and 2010-10.	The Group has not yet determined the impact on the Group's financial statements.	1 Jan 2017

 

The Group has not elected to early adopt any new Standards or Interpretations.

 

(e)   Changes in accounting policies and disclosures

In the year ended 30 June 2016, the Directors have reviewed all of the new and revised Standards and Interpretations issued by the AASB that are relevant to its operations and effective for the current annual reporting period. 

 

It has been determined by the Directors that there is no impact, material or otherwise, of the new and revised Standards and Interpretations on its business and, therefore, no change is necessary to Group accounting policies.

 

(f)    Basis of Consolidation

The consolidated financial statements comprise the financial statements of Harvest Minerals Limited and its subsidiaries as at 30 June each year ('the Company').

 

Subsidiaries are all those entities (including special purpose entities) over which the Company has control. The Company controls an entity when the company is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the activities of the entity.

 

The financial statements of the subsidiaries are prepared for the same reporting period as the parent Company, using consistent accounting policies. 

 

In preparing the consolidated financial statements, all intercompany balances and transactions, income and expenses and profit and losses resulting from intra-company transactions have been eliminated in full.

Subsidiaries are fully consolidated from the date on which control is obtained by the Company and cease to be consolidated from the date on which control is transferred out of the Company.

 

The acquisition of subsidiaries is accounted for using the acquisition method of accounting. The acquisition method of accounting involves recognising at acquisition date, separately from goodwill, the identifiable assets acquired, the liabilities assumed and any non-controlling interest in the acquiree. The identifiable assets acquired and the liabilities assumed are measured at their acquisition date fair values.

 

The difference between the above items and the fair value of the consideration (including the fair value of any pre-existing investment in the acquiree) is goodwill or a discount on acquisition.

 

A change in the ownership interest of a subsidiary that does not result in a loss of control, is accounted for as an equity transaction.

 

(g)   Foreign Currency Translation

(i)  Functional and presentation currency

Items included in the financial statements of each of the Company's entities are measured using the currency of the primary economic environment in which the entity operates ('the functional currency').  The functional and presentation currency of Harvest Minerals Limited is Australian dollars. The functional currency of the overseas subsidiaries is Brazilian Reals.

 

(ii) Transactions and balances

Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions.  Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year‑end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the Statement of Comprehensive Income.

 

(iii) Group entities

The results and financial position of all the Company entities (none of which has the currency of a hyperinflationary economy) that have a functional currency different from the presentation currency are translated into the presentation currency as follows:

 

·      assets and liabilities for each statement of financial position presented are translated at the closing rate at the date of that statement of financial position;

 

·      income and expenses for each statement of comprehensive income are translated at average exchange rates (unless this is not a reasonable approximation of the rates prevailing on the transaction dates, in which case income and expenses are translated at the dates of the transactions); and

 

·      all resulting exchange differences are recognised as a separate component of equity.

 

On consolidation, exchange differences arising from the translation of any net investment in foreign entities are taken to foreign currency translation reserve. 

 

When a foreign operation is sold or any borrowings forming part of the net investment are repaid, a proportionate share of such exchange differences are recognised in the statement of comprehensive income, as part of the gain or loss on sale where applicable.

 

(h)   Plant and Equipment

Each class of plant and equipment is carried at cost less, where applicable, any accumulated depreciation and impairment losses.

 

Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. Repairs and maintenance expenditure is charged to the statement of comprehensive income during the financial period in which it is incurred.

 

Depreciation

The depreciable amount of all fixed assets is depreciated on a straight line basis over their useful lives to the Group commencing from the time the asset is held ready for use.

The depreciation rates used for each class of depreciable assets are:

 

Class of Fixed Asset                           Depreciation Rate

Plant and equipment                            33% - 50%

Furniture, Fixtures and Fittings                         10%

Computer and software                                    20%

 

The assets' residual values and useful lives are reviewed, and adjusted if appropriate, at each statement of financial position date.

 

Derecognition

Additions of plant and equipment are derecognised upon disposal or when no further future economic benefits are expected from their use or disposal.

 

Gains and losses on disposals are determined by comparing proceeds with the carrying amount.  These gains and losses are recognised in the statement of comprehensive income. 

 

(i)    Impairment of non-financial assets

The Group assesses at each reporting date whether there is an indication that an asset may be impaired. If any such indication exists, or when annual impairment testing for an asset is required, the Group makes an estimate of the asset's recoverable amount. An asset's recoverable amount is the higher of its fair value less costs to sell and its value in use and is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets of the Group and the asset's value in use cannot be estimated to be close to its fair value. In such cases the asset is tested for impairment as part of the cash generating unit to which it belongs. When the carrying amount of an asset or cash-generating unit exceeds its recoverable amount, the asset or cash-generating unit is considered impaired and is written down to its recoverable amount.

 

In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. Impairment losses relating to continuing operations are recognised in the statement of comprehensive income.

 

An assessment is also made at each reporting date as to whether there is any indication that previously recognised impairment losses may no longer exist or may have decreased. If such indication exists, the recoverable amount is estimated. A previously recognised impairment loss is reversed only if there has been a change in the estimates used to determine the asset's recoverable amount since the last impairment loss was recognised. If that is the case the carrying amount of the asset is increased to its recoverable amount. That increased amount cannot exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognised for the asset in prior years. Such reversal is recognised in profit or loss.

 

After such a reversal the depreciation charge is adjusted in future periods to allocate the asset's revised carrying amount, less any residual value, on a systematic basis over its remaining useful life.

 

(j)    Exploration expenditure

Exploration and evaluation expenditure incurred by or on behalf of the Group is accumulated separately for each area of interest.  Such expenditure comprises net direct costs and an appropriate portion of related overhead expenditure, but does not include general overheads or administrative expenditure not having a specific nexus with a particular area of interest.

 

Each area of interest is limited to a size related to a known or probable mineral resource capable of supporting a mining operation.

 

Exploration and evaluation expenditure for each area of interest is carried forward as an asset provided that one of the following conditions is met:

 

·      such costs are expected to be recouped through successful development and exploitation of the area of interest or, alternatively, by its sale; or

 

·      exploration and evaluation activities in the area of interest have not yet reached a stage which permits a reasonable assessment of the existence or otherwise of economically recoverable reserves, and active and significant operations in relation to the area are continuing.

 

Expenditure which fails to meet the conditions outlined above is written off, furthermore, the directors regularly review the carrying value of exploration and evaluation expenditure and make write downs if the values are not expected to be recoverable.

 

Identifiable exploration assets acquired are recognised as assets at their cost of acquisition, as determined by the requirements of AASB 6 Exploration for and evaluation of mineral resources. Exploration assets acquired are reassessed on a regular basis and these costs are carried forward provided that at least one of the conditions referred to in AASB 6 is met.

 

Exploration and evaluation expenditure incurred subsequent to acquisition in respect of an exploration asset acquired is accounted for in accordance with the policy outlined above for exploration expenditure incurred by or on behalf of the entity.

 

Acquired exploration assets are not written down below acquisition cost until such time as the acquisition cost is not expected to be recovered.

 

When an area of interest is abandoned, any expenditure carried forward in respect of that area is written off.

 

Expenditure is not carried forward in respect of any area of interest/mineral resource unless the Group's rights of tenure to that area of interest are current.

 

(k)   Trade and Other Receivables

Trade receivables, which generally have 30 - 90 day terms, are recognised and carried at original invoice amount less an allowance for any uncollectible amounts.

 

An estimate for doubtful debts is made when collection of the full amount is no longer probable.  Bad debts are written off when identified.

 

 

(l)    Cash and Cash Equivalents

Cash and cash equivalent in the statement of financial position include cash on hand, deposits held at call with banks and other short term highly liquid investments with original maturities of three months or less. Bank overdrafts are shown as current liabilities in the statement of financial position. For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and cash equivalents as described above and bank overdrafts.

 

(m)  Provisions

Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.

 

Where the Group expects some or all of a provision to be reimbursed, for example under an insurance contract, the reimbursement is recognised as a separate asset but only when the reimbursement is virtually certain.  The expense relating to any provision is presented in the statement of comprehensive income net of any reimbursement.

 

If the effect of the time value of money is material, provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money, and where appropriate, the risks specific to the liability.

 

Where discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost.

 

(n)   Trade and other payables

Liabilities for trade creditors and other amounts are measured at amortised cost, which is the fair value of the consideration to be paid in the future for goods and services received that are unpaid, whether or not billed to the Group.

 

(o)   Income Tax

Deferred income tax is provided for on all temporary differences at balance date between the tax base of assets and liabilities and their carrying amounts for financial reporting purposes.

 

No deferred income tax will be recognised from the initial recognition of goodwill or of an asset or liability, excluding a business combination, where there is no effect on accounting or taxable profit or loss.

 

No deferred income tax will be recognised in respect of temporary differences associated with investments in subsidiaries if the timing of the reversal of the temporary difference can be controlled and it is probable that the temporary differences will not reverse in the near future.

 

Deferred tax is calculated at the tax rates that are expected to apply to the period when the asset is realised or liability is settled.  Deferred tax is charged or credited in the statement of comprehensive income except where it relates to items that may be charged or credited directly to equity, in which case the deferred tax is adjusted directly against equity.

 

Deferred income tax assets are recognised for all deductible temporary differences, carry forward of unused tax assets and unused tax losses to the extent that it is probable that future tax profits will be available against which deductible temporary differences can be utilised.

 

The amount of benefits brought to account or which may be realised in the future is based on tax rates (and tax laws) that have been enacted or substantially enacted at the balance date and the anticipation that the Group will derive sufficient future assessable income to enable the benefit to be realised and comply with the conditions of deductibility imposed by the law.  The carrying amount of deferred tax assets is reviewed at each balance date and only recognised to the extent that sufficient future assessable income is expected to be obtained.

 

Income taxes relating to items recognised directly in equity are recognised in equity and not in the statement of comprehensive income.

 

Deferred tax assets and deferred tax liabilities are offset only if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred tax assets and liabilities relate to the same taxable entity and the same taxation authority.

 

(p)   Issued capital

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from the proceeds.

 

(q)   Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue is capable of being reliably measured. The following specific recognition criteria must also be met before revenue is recognised:

 

Interest income

Revenue is recognised as the interest accrues (using the effective interest method, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial instrument) to the net carrying amount of the financial asset.

 

(r)    Earnings per share

Basic earnings per share

Basic earnings per share is calculated by dividing the profit attributable to equity holders of the Company, excluding any costs of servicing equity other than dividends, by the weighted average number of ordinary shares, adjusted for any bonus elements.

 

Diluted earnings per share

Diluted earnings per share is calculated as net profit attributable to members of the Company, adjusted for:

·      costs of servicing equity (other than dividends);

·      the after tax effect of dividends and interest associated with dilutive potential ordinary shares that have been recognised as expenses; and

·      other non-discretionary changes in revenues or expenses during the period that would result from the dilution of potential ordinary shares;

·      divided by the weighted average number of ordinary shares and dilutive potential ordinary shares, adjusted for any bonus elements.

 

(s)   Goods and services tax

Revenues, expenses and assets are recognised net of the amount of GST/sales tax, except where the amount of GST/sales tax incurred is not recoverable from the relevant Tax Authority. In these circumstances, the GST/sales tax is recognised as part of the cost of acquisition of the asset or as part of an item of the expense. Receivables and payables in the statement of financial position are shown inclusive of GST/sales tax.

 

The net amount of GST/sales tax recoverable from, or payable to, the Tax Authority is included as part of receivables or payables in the statement of financial position.

 

Cash flows are presented in the statement of cash flows on a gross basis, except for the GST component of investing and financing activities, which is receivable from or payable to the ATO, are disclosed as operating cash flows.

 

(t)    Share based payment transactions

The Group provides benefits to individuals acting as, and providing services similar to employees (including Directors) of the group in the form of share based payment transactions, whereby individuals render services in exchange for shares or rights over shares ('equity settled transactions').

 

There is currently an Employee Share Option Scheme (ESOS) in place, which provides benefits to Directors and individuals providing services similar to those provided by an employee.

 

The cost of these equity settled transactions with employees is measured by reference to the fair value at the date at which they are granted. The fair value is determined by using an option pricing formula taking into account the terms and conditions upon which the instruments were granted, as discussed in note 23.

 

In valuing equity settled transactions, no account is taken of any performance conditions, other than conditions linked to the price of the shares of Harvest Minerals Limited ('market conditions').

 

The cost of the equity settled transactions is recognised, together with a corresponding increase in equity, over the period in which the performance conditions are fulfilled, ending on the date on which the relevant employees become fully entitled to the award ('vesting date').

 

The cumulative expense recognised for equity settled transactions at each reporting date until vesting date reflects (i) the extent to which the vesting period has expired and (ii) the number of awards that, in the opinion of the Directors of the group, will ultimately vest. This opinion is formed based on the best available information at balance date. No adjustment is made for the likelihood of the market performance conditions being met as the effect of these conditions is included in the determination of fair value at grant date. The statement of comprehensive income charge or credit for a period represents the movement in cumulative expense recognised at the beginning and end of the period.

 

No expense is recognised for awards that do not ultimately vest, except for awards where vesting is conditional upon a market condition.

Where the terms of an equity settled award are modified, as a minimum an expense is recognised as if the terms had not been modified. In addition, an expense is recognised for any increase in the value of the transaction as a result of the modification, as measured at the date of the modification.

 

Where an equity settled award is cancelled, it is treated as if it had vested on the date of the cancellation, and any expense not yet recognised for the award is recognised immediately. However if a new award is substituted for the cancelled award, and designated as a replacement award on the date that it is granted, the cancelled and new awards are treated as if they were a modification of the original award, as described in the previous paragraph.

 

The cost of equity-settled transactions with non-employees is measured by reference to the fair value of goods and services received unless this cannot be measured reliably, in which case the cost is measured by reference to the fair value of the equity instruments granted. The dilutive effect, if any, of outstanding options is reflected in the computation of loss per share (see note 20).

 

(u)   Comparative figures

When required by Accounting Standards, comparative figures have been adjusted to conform to changes in presentation for the current financial year.

 

(v)   Operating segments

Operating segments are presented using the 'management approach', where the information presented is on the same basis as the internal reports provided to the Chief Operating Decision Makers ('CODM'). The CODM is responsible for the allocation of resources to operating segments and assessing their performance.

 

(w)  Fair value measurement

When an asset or liability, financial or non-financial, is measured at fair value for recognition or disclosure purposes, the fair value is based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date; and assumes that the transaction will take place either: in the principle market; or in the absence of a principal market, in the most advantageous market.

 

Fair value is measured using the assumptions that market participants would use when pricing the asset or liability, assuming they act in their economic best interest. For non-financial assets, the fair value measurement is based on its highest and best use. Valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, are used, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.

 

Assets and liabilities measured at fair value are classified, into three levels, using a fair value hierarchy that reflects the significance of the inputs used in making the measurements. Classifications are reviewed each reporting date and transfers between levels are determined based on a reassessment of the lowest level input that is significant to the fair value measurement.

 

For recurring and non-recurring fair value measurements, external valuers may be used when internal expertise is either not available or when the valuation is deemed to be significant. External valuers are selected based on market knowledge and reputation. Where there is a significant change in fair value of an asset or liability from one period to another, an analysis is undertaken, which includes a verification of the major inputs applied in the latest valuation and a comparison, where applicable, with external sources of data.

 

(x)   Critical accounting estimates and judgements

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that may have a financial impact on the entity and that are believed to be reasonable under the circumstances.

 

The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.

 

Capitalised exploration and evaluation expenditure

The future recoverability of capitalised exploration and evaluation expenditure is dependent on a number of factors, including whether the Group decides to exploit the related lease itself or, if not, whether it successfully recovers the related exploration and evaluation asset through sale.

 

Factors which could impact the future recoverability include the level of proved, probable and inferred mineral resources, future technological changes which could impact the cost of mining, future legal changes (including changes to environmental restoration obligations) and changes to commodity prices and exchange rules.

To the extent that capitalised exploration and evaluation expenditure is determined not to be recoverable in the future, this will reduce profits and net assets in the period in which this determination is made.

 

In addition, exploration and evaluation expenditure is capitalised if activities in the area of interest have not yet reached a stage which permits a reasonable assessment of the existence or otherwise of economically recoverable reserves.  To the extent that it is determined in the future that this capitalised expenditure should be written off, this will reduce profits and net assets in the period in which this determination is made.

 

Share based payment transactions

The Group measures the cost of equity settled transactions with employees by reference to the fair value of the equity instruments at the date at which they are granted. The fair value is determined by using the Black Scholes formula taking into account the terms and conditions upon which the instruments were granted, as discussed in note 23.

 

Functional currency translation reserve

Under the Accounting Standards, each entity within the Group is required to determine its functional currency, which is the currency of the primary economic environment in which the entity operates. Management considers the Brazilian subsidiaries to be foreign operations with Brazilian Reias as the functional currency. In arriving at this determination, management has given priority to the currency that influences the labour, materials and other costs of exploration activities as they consider this to be a primary indicator of the functional currency.

 

3.          Segment Information

 

For management purposes, the Group is organised into one main operating segment, which involves mining exploration for tin. All of the Group's activities are interrelated, and discrete financial information is reported to the Board (Chief Operating Decision Makers) as a single segment.

 

No revenue is derived from a single external customer.

 

Accordingly, all significant operating decisions are based upon analysis of the Group as one segment. The financial results from this segment are equivalent to the financial statements of the Group as a whole. Total revenue earned by the Group is generated in Australia and all of the Group's non-current assets reside in Brazil.

 

		Consolidated
			2016 $	2015 $

4.          Consulting and Directors' Fees

Directors' fees		585,553	120,000
Company secretary fees		61,500	40,000
Public relations consulting fees		29,446	-
Accounting consultant fees for AIM admission		168,796	-
AIM nominated and financial adviser fees		259,049	-
AIM broker advisory fees		27,650	-
Other consultant fees		220,293	189,215
Corporate advisory fees		60,000	80,235
Total consulting and directors' fees		1,412,287	429,450

 

 

		Consolidated
			2016 $	2015 $

5.          Other Expenses

Insurance		9,524	8,317
Telephone and internet		20,921	3,026
Printing and stationery		3,788	6,617
Rent and outgoings		172,646	-
Serviced office		120,000	127,231
Marketing		37,694	10,638
Depreciation		1,834	8,128
Other		58,443	36,164
Total other expenses		424,850	200,121

 

 

6.          Income Tax

(a) Income tax expense
Major component of tax expense for the year:
Current tax		-	-
Deferred tax		-	-
		-	-

 

	(b) Numerical reconciliation between aggregate tax expense recognised in the statement of comprehensive income and tax expense calculated per the statutory income tax rate.
	A reconciliation between tax expense and the product of accounting loss before income tax multiplied by the Group's applicable tax rate is as follows:
	Loss from continuing operations before income tax expense						(2,820,472)	(1,624,578)
	Tax at the group rate of 30%						(846,142)	(487,373)
	Expense of remuneration options						-	21,343
	Non-deductible expenses						6,461	230,875
	Income tax benefit not brought to account						839,681	235,155
	Income tax expense						-	-
	(c) Unused tax losses
	Unused tax losses						7,449,491	4,835,774
	Potential tax benefit not recognised at 30%						2,234,847	1,450,732

 

The benefit of the tax losses will only be obtained if:

(i)            the Group derives future assessable income in Australia of a nature and of an amount sufficient to enable the benefit from the deductions for the losses to be realised, and

(ii)           the Group continues to comply with the conditions for deductibility imposed by tax legislation in Australia and

(iii)          no changes in tax legislation in Australia adversely affect the Group in realising the benefit from the deductions for the losses.

 

 

 

		Consolidated
			2016 $	2015 $

7.          Cash and Cash Equivalents

  Reconciliation of Cash and Cash Equivalents

Cash comprises:
Cash at bank		2,737,190	884,629
Short term deposits		-	653,331
		2,737,190	1,537,960
Reconciliation of operating loss after tax to the cash flows  from operations
Loss from ordinary activities after tax		(2,820,472)	(1,624,578)
Non cash items
Share based payments (refer note 23)		-	71,142
Depreciation charges		1,834	8,128
Exploration expenditure written off (refer note 11)		21,537	769,584
Foreign exchange gain		160,349	(136,934)
Change in assets and liabilities
(Increase) / Decrease in trade and other receivables		1,997	(20,038)
Increase / (Decrease) in trade and other payables		(28,456)	14,507
Net cash outflow from operating activities		(2,663,211)	(918,189)

  Non-cash Investing and Financing Transactions

During the year ended 30 June 2016, the Company has issued shares to acquire assets. These transactions are described at note 23(c).

 

8.          Trade and Other Receivables - Current

GST receivable		13,021	15,806
Refundable security deposit		15,120	17,248
Other		55,327	14,009
		83,468	47,063

 

Trade debtors, other debtors and goods and services tax are non-interest bearing and generally receivable on 30 day terms. They are neither past due nor impaired. The amount is fully collectible. Due to the short term nature of these receivables, their carrying value is assumed to approximate their fair value.

 

9.          Investments in subsidiaries

The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiaries in accordance with the accounting policy described in note 2(f).

 

Name of Entity	Country of Incorporation	Equity Holding 2016	Equity Holding 2015
Triumph Tin Mining Limited	Australia	100%	100%
Lotus Mining Pty Limited	Australia	100%	100%
Triunfo Mineracao do Brasil Ltda	Brazil	100%	100%

 

 

 

 

 

 

 

		Consolidated
			2016 $	2015 $

10.        Plant and Equipment

Plant and Equipment
Cost		54,422	53,989
Accumulated depreciation and impairment		(43,010)	(41,707)
Net carrying amount		11,412	12,282
Computer Equipment and Software
Cost		1,091	1,089
Accumulated depreciation and impairment		(816)	(597)
Net carrying amount		275	492
Furniture, Fixtures and Fittings
Cost		5,256	5,251
Accumulated depreciation and impairment		(2,049)	(1,522)
Net carrying amount		3,207	3,729
Total Plant and Equipment		14,894	16,503

 

Movements in Plant and Equipment
Plant and Equipment
At beginning of the year			12,282	7,006
Effect of foreign exchange rate			20	(279)
Additions			413	12,875
Depreciation charge for the year			(1,303)	(7,320)
			11,412	12,282
Computer Equipment and Software
At beginning of the year			492	823
Effect of foreign exchange rate			2	(173)
Depreciation charge for the year			(219)	(158)
			275	492
Furniture, Fixtures and Fittings
At beginning of the year			3,729	4,926
Effect of foreign exchange rate			5	(830)
Depreciation charge for the year			(527)	(367)
			3,207	3,729
Total Plant and Equipment			14,894	16,503

 

 

 

 

 

 

	Consolidated
			2016 $	2015 $

11.        Deferred Exploration and Evaluation Expenditure

At beginning of the year		1,394,679	848,924
Acquisition of Capela Potash Project		-	920,000
Acquisition of Sergi Potash Project1		1,900,000	100,000
Exploration expenditure during the year		643,447	402,505
Impairment loss		(21,537)	(769,584)
Net exchange differences on translation		50,580	(107,166)
Total exploration and evaluation		3,967,167	1,394,679

 

¹ As announced on the ASX on 20 April 2015 Harvest acquired a 100% interest in the Sergi Potash Project in the Sergipe State, Brazil. The portion of consideration for this acquisition recorded during the period, as per the Sergi Project Mineral Rights Purchase and Sale Agreement, includes the issue of 120,000,000 pre-consolidation fully paid ordinary shares in the Company on achieving key asset milestone as detailed in ASX announcement 'Inferred Mineral Resource Estimate - Sergi Potash Project' released on the ASX on 23 July 2015. Per the agreement the Company also issued a further 60,000,000 pre-consolidation fully paid ordinary shares in the Company and paid $100,000 on 31 December 2015. 

 

The ultimate recoupment of costs carried forward for exploration expenditure is dependent on the successful development and commercial exploitation or sale of the respective mining areas.

 

12.        Trade and Other Payables

Trade payables		55,892	141,182
Accruals		39,200	420,000
Other		-	140,000
		95,092	701,182

 

Trade creditors, other creditors and goods and services tax are non-interest bearing and generally payable on 60 day terms. Due to the short term nature of these payables, their carrying value is assumed to approximate their fair value.

 

 

 

 

 

 

 

	Consolidated
			2016 $	2015 $

13.        Issued Capital

(a) Issued capital
Ordinary shares fully paid		21,345,616	14,241,114

 

	2016		2015
(b) Movements in shares on issue	No. of shares	$	No. of shares	$
At beginning of the year	357,443,423	14,241,114	77,430,000	11,549,368
Shares issued as consideration for acquisition1	160,000,000	1,600,000	40,000,000	400,000
Shares issued as part of rights issue	30,228,243	302,282	180,013,423	1,800,134
Shares issued as part of placement	275,820,000	4,188,877	60,000,000	600,000
	823,491,666	20,332,273	357,443,423	14,349,502
Consolidation of capital (10:1)	(741,142,464)	-	-	-
	82,349,202	20,332,273	357,443,423	14,349,502
Shares issued as part of placement	5,642,000	876,995	-	-
Shares issued as consideration for acquisition1	6,000,000	600,000	-	-
Share issue costs	-	(463,652)	-	(108,388)
At ending of the year	93,991,202	21,345,616	357,443,423	14,241,114

 

¹ As announced on the ASX on 13 July 2015, 40,000,000 shares (pre-consolidation) were issued as part consideration to acquire the Capela Project in Brazil. As announced on the ASX on 9 October 2015, 60,000,000 shares (pre-consolidation) were issued as part consideration to acquire the Sergi Project in Brazil. A further 60,000,000 shares (pre-consolidation) were issued as part consideration for the Sergi Project acquisition on 18 November 2015 and 6,000,000 (post-consolidation) on 19 January 2016. For further details refer to note 11.

 

(c) Ordinary shares

The Company does not have authorised capital nor par value in respect of its issued capital. Ordinary shares have the right to receive dividends as declared and, in the event of a winding up of the Company, to participate in the proceeds from sale of all surplus assets in proportion to the number of and amounts paid up on shares held. Ordinary shares entitle their holder to one vote, either in person or proxy, at a meeting of the Company.

 

(d)    Capital risk management

The Group's capital comprises share capital, reserves less accumulated losses amounting to $6,707,627 at 30 June 2016 (2015: $2,295,023). The Group manages its capital to ensure its ability to continue as a going concern and to optimise returns to its shareholders. The Group was ungeared at year end and not subject to any externally imposed capital requirements. Refer to note 21 for further information on the Group's financial risk management policies.

 

 

 

 

 

 

13. Issued Capital continued

 

(e)   Share options

As at the date of this report, there were 15,695,500 unissued ordinary shares under options (16,813,720 at the reporting date).  The details of the options at the date of this report and movements in issued options since 1 July 2015 are as follows:

 

	Exercise at $0.05	Exercise at 8.8p	Exercise at 7.5p	Exercise at 7.5p	Exercise at 10p
	by 31/12/15	by 31/5/17	by 18/12/20	by 12/07/21	by 12/07/21
Balance at 1 July 2015	6,000,000	-	-	-	-
Issued 17 December 2015	-	130,410,000	9,517,200	-	-
	6,000,000	130,410,000	9,517,200	-	-
Expired unexercised 31 December 2015	(6,000,000)	-	-	-	-
	-	130,410,000	9,517,200	-	-
Consolidation of capital (10:1)	-	(117,369,000)	(8,565,480)	-	-
	-	13,041,000	951,720	-	-
Issued 13 January 2016	-	2,821,000	-	-	-
Balance at 30 June 2016	-	15,862,000	951,720	-	-
Issued 31 August 2016	-	-	-	266,667	200,000
Exercised 31 August 2016	-	(166,500)	-	-	-
Exercised on 1 September 2016	-	-	-	(266,667)	(200,000)
Exercised on 7 September 2016	-	-	(951,720)	-	-
Balance at the date of this report	-	15,695,500	-	-	-

 

No option holder has any right under the options to participate in any other share issue of the Company or any other entity.

 

No other options were exercised during or since the end of the financial year.

		Consolidated
			2016 $	2015 $

14.        Reserves

Share based payment reserve		2,858,682	2,788,014
Foreign currency translation reserve		(64,568)	(122,474)
		2,794,144	2,665,540

     Movements in Reserves

Share based payment reserve
At beginning of the year		2,788,014	2,716,872
Share based payments during the year		70,668	71,142
At 30 June		2,858,682	2,788,014

 

The share based payment reserve is used to record the value of equity benefits provided to Directors and Executives as part of their remuneration and non-employees for their services. Refer to note 23 for further details of the options issued during the financial year.

 

Foreign currency translation reserve
At beginning of the year		(122,474)	(15,873)
Foreign currency translation		57,906	(106,601)
At 30 June		(64,568)	(122,474)

 

The foreign exchange differences arising on translation of the foreign controlled entities are taken to the foreign currency translation reserve, as described in note 2(g). The reserve is recognised in the statement of comprehensive income when the net investment is disposed of.

 

		Consolidated
			2016 $	2015 $

15.        Accumulated losses

Movements in accumulated losses were as follows:
At beginning of the year		(14,611,631)	(12,987,053)
Loss for the year		(2,820,472)	(1,624,578)
At 30 June		(17,432,103)	(14,611,631)

 

16.        Expenditure Commitments

(a)   Rental and service agreements

The Group entered a service agreement for certain administrative services and office space for a term of three years starting in October 2014. The Group is required to give three months written notice to terminate the agreement.

 

Within one year			150,000	120,000
After one year but not longer than 5 years			-	150,000
			150,000	270,000

 

(b)   Exploration commitments

In order to maintain the current rights of tenure to mining tenements, the Group has certain committed exploration expenditure requirements and option payments. Elements of these obligations that are not provided for in the financial statements and are due as follows:

 

Within one year			777,344	2,783,595
After one year but not longer than five years			2,557,344	4,312,397
After five years			7,543,923	7,506,336
			10,878,611	14,602,328

These obligations have arisen as a result of certain acquisitions that were undertaken during the year as summarised below.

 

Capela Potash Project

As announced on the ASX on 28 August 2014, Harvest acquired a 51% interest in the Capela Potash Project in the Sergipe State, Brazil from Kmine Holdings Ltd. Consideration for this acquisition per the Mineral Rights Purchase and Sale Agreement comprises:

   a). Payment of $120,000 on execution of the acquisition agreement;

   b). The issue of 40,000,000 fully paid ordinary shares in the Company at a price of $0.01 per share (note 13);

   c). The issue of further shares in the Company to the value of $400,000 prior to 31 December 2014;

   d). The issue of further shares in the Company to the value of $400,000, not before 31 December 2014, on the identification of 10 million tonnes of carnallite or sylvite with a minimum grade of 10% KCI;

   e). The issue of further shares in the Company to the value of $800,000, not before 31 July 2015, on the identification of a JORC inferred reserve with the minimum of 25 million tonnes with a minimum grade of more than 10% of KCI;

   f). The issue of further shares in the Company to the value of $1,000,000, not before 31 December 2015, if the Company completes a scoping study, feasibility study or another study that confirms the economic feasibility under the JORC Code;

   g). Drill two (2) holes for a total of 700m.

 

   The elements of the consideration noted at d). to g). have not been fulfilled as at 30 June 2016 and have therefore been recorded as commitments as appropriate. Harvest also has the option of acquiring the other 49% interest in the Project by the payment of $5,000,000 within three years after execution of the agreement.

 

  

16.       Expenditure Commitments continued

 

Sergi Potash Project

As announced on the ASX on 20 April 2015, Harvest acquired a 100% interest in the Sergi Potash Project in the Sergipe State, Brazil from Kmine Holdings Ltd. Consideration for this acquisition per the Heads of Agreement comprises:

   a). Payment of $50,000 on execution of the acquisition agreement;

   b). Payment of $50,000 on execution of definitive agreement, subject to due diligence;

   c). On 31 December 2015 and 2016 payment of $100,000 and 60,000,000 (6,000,000 post consolidation) fully paid ordinary shares in the Company;

   d). On 31 December 2017 to 2021 payment of $100,000 to Kmine Holdings Ltd;

   e). On achieving minimum horizon of 10 meters of carnallite or sylvite with a minimum grade of 10%, payment of 60,000,000 fully paid ordinary shares in the Company;

   f). On achieving a JORC inferred reserve with the minimum of 25 million tonnes with a minimum grade of more than 10% of KCl, payment of 60,000,000 fully paid ordinary shares in the Company;

   g). On achieving a successful scope or feasibility study that confirms the economic feasibility under the JORC rules, payment of 60,000,000 (6,000,000 post consolidation) fully paid ordinary shares in the Company; and

   h). On commencing of commercial production, payment of $6,000,000 to Kmine Holdings Ltd.

  

The elements of the consideration noted at c). (31 December 2016 portion), d)., g). and h). have not been fulfilled as at 30 June 2016 and have therefore been recorded as commitments as appropriate.

 

Arapua Fertilizer Project

As announced on the ASX on 5 September 2014, Harvest acquired a 100% interest in the Arapua Fertilizer Project in the State of Minas Gerais in Brazil. The salient terms of the acquisition are:

a). A total payment of US$1,000,000 at the commencement of commercial production; and

b). A Net Smelter Return Royalty to the vendors of 2%.

 

The elements of the consideration have not been fulfilled as at 30 June 2016 and have therefore been recorded as commitments as appropriate.

 

Mandacaru Phosphate Project

As announced on AIM on 21 December 2015, Harvest acquired a 100% interest in the Mandacaru Phosphate Project in the Ceara State, Brazil. The salient terms of the acquisition are:

a). A Net Smelter Return Royalty to the vendors of 2%, capped at an aggregate amount of US$1,000,000.

 

The elements of the consideration have not been fulfilled as at 30 June 2016 and have therefore been recorded as commitments as appropriate.

 

If the Group decides to relinquish and/or does not meet the obligations, assets recognised in the Statement of Financial Position may require review to determine the appropriateness of carrying values. The sale, transfers or farm-out of exploration rights to third parties will reduce or extinguish the above obligations.

 

17.        Auditor's Remuneration

		The auditor of Harvest Minerals Limited is HLB Mann Judd.                        Consolidated 2016 $ 2015 $
		Amounts received or due and receivable for:
-  Audit or review of the financial report of the entity and any other entity in the Consolidated group						23,000		23,000
				23,000				23,000

18.        Events Subsequent to Balance Date

 

On 16 June 2016, the Company announced it had received conditional approval from the ASX for the removal of the Company from the official list. The Company was removed from the list on 22 July 2016.

 

On 31 August 2016, the Company announced the issue of 266,667 options exercisable at 7.5p and 200,000 options exercisable at 10p both expiring on 12 July 2021 to Beaufort Securities Limited as part of their appointment as Joint Broker to the Company.   On 1 September 2016, the 466,667 options were exercised with the 466,667 new fully paid ordinary shares issued on 7 September 2016.

 

On 5 September 2016, the Company announced the appointment of Mr Jack James as Joint Company Secretary.

 

On 7 September 2016, the Company announced the exercise of 951,720 options with an exercise price of 7.5p expiring on 18 December 2020. The new fully paid ordinary shares are to be issued on 13 September 2016.

 

There were no other known significant events from the end of the financial year to the date of this report.

 

19.        Related Party Disclosures

The ultimate parent entity is Harvest Minerals Limited. Refer to note 9 for a list of all subsidiaries within the Group.

 

Gemstar Investments Limited, a company in which Mr McMaster is a director, has no balance (2015: $2,500) outstanding at year end.

 

Styletown Investments Pty Ltd, a company in which Mr Reilly is a director, has $5,940 (2015: $2,500) outstanding at year end.

 

FFA Legal Ltda, a company in which Mr Azevedo is a director, provided the Group with legal and accounting services in Brazil totalling $160,156 (2015: $125,236). $10,411 (2015: $10,399) was outstanding at year end.

 

Garrison Capital Pty Ltd, a company in which Mr McMaster and Mr Wood are directors and shareholders, provided the Group with a fully serviced office including administration and information technology support totalling $30,000 in 2015, such services were not provided this financial year, corporate advisory services totalling $10,000 (2015: $60,000) and reimbursement of payments for legal, accounting and other minor expenses, at cost totalling $22,122 (2015: $23,780). No balance (2015: $5,000) was outstanding at year end.

 

Garrison Capital Partners Ltd, a company in which Mr McMaster and Mr Wood are directors and shareholders, provided the Group with corporate consulting services totalling $36,000 in 2015, such services were not provided this financial year. No balance was outstanding at year end.

 

These transactions have been entered into on normal commercial terms and conditions no more favourable than those available to other parties unless otherwise stated.

 

 

 

 

 

	Consolidated
		2016 $	2015 $

20.        Loss per Share

Loss used in calculating basic and dilutive EPS			(2,820,472)	(1,624,578)
			Number of Shares
Weighted average number of ordinary shares used in calculating basic earnings / (loss) per share :			71,031,791	25,337,989
Effect of dilution:
Share options			-	-
Adjusted weighted average number of ordinary shares used in calculating diluted loss per share:			71,031,791	25,337,989

 

There is no impact from 16,813,720 options outstanding at 30 June 2016 (2015: 6,000,000 options) on the loss per share calculation because they are considered anti-dilutive. These options could potentially dilute basic EPS in the future. There have been no transactions involving ordinary shares or potential ordinary shares that would significantly change the number of ordinary shares or potential ordinary shares outstanding between the reporting date and the date of completion of these financial statements.

 

21.        Financial Risk Management

Exposure to interest rate, liquidity and credit risk arises in the normal course of the Group's business.  The Group does not hold or issue derivative financial instruments. 

 

The Group uses different methods as discussed below to manage risks that arise from these financial instruments. The objective is to support the delivery of the financial targets while protecting future financial security.

 

(a) Liquidity risk

Liquidity risk is the risk that the Group will encounter difficulty in meeting obligations associated with financial liabilities.

 

The Group manages liquidity risk by maintaining sufficient cash facilities to meet the operating requirements of the business and investing excess funds in highly liquid short term investments. The responsibility for liquidity risk management rests with the Board of Directors.

 

Alternatives for sourcing the Group's future capital needs include the cash position and the issue of equity instruments. These alternatives are evaluated to determine the optimal mix of capital resources for our capital needs. We expect that, absent a material adverse change in a combination of our sources of liquidity, present levels of liquidity along with future capital raising will be adequate to meet our expected capital needs.

 

Maturity analysis for financial liabilities

Financial liabilities of the Group comprise trade and other payables. As at 30 June 2016 and 30 June 2015 all financial liabilities are contractually matured within 60 days.

 

 

 

 

 

21. Financial Risk Management continued

 

(b) Interest rate risk

Interest rate risk arises from the possibility that changes in interest rates will affect future cash flows or the fair value of financial instruments.

 

The Group's exposure to market risk for changes to interest rate risk relates primarily to its earnings on cash and term deposits. The Group manages the risk by investing in short term deposits.

	Consolidated
		2016 $	2015 $
Cash and cash equivalents		2,737,190	1,537,960

 

Interest rate sensitivity

The following table demonstrates the sensitivity of the Group's statement of comprehensive income to a reasonably possible change in interest rates, with all other variables constant. 

 

Consolidated

Judgements of reasonably possible movements		Effect on Post Tax Earnings Increase/(Decrease)		Effect on  Equity including accumulated losses Increase/(Decrease)
		2016 $	2015 $	2016 $	2015 $
Increase 100 basis points		27,372	15,380	27,372	15,380
Decrease 100 basis points		(27,372)	(15,380)	(27,372)	(15,380)

 

A sensitivity of 100 basis points has been used as this is considered reasonable given the current level of both short term and long term Australian Dollar interest rates. The change in basis points is derived from a review of historical movements and management's judgement of future trends. The analysis was performed on the same basis in 2015.

 

(c)      Credit risk exposures

Credit risk represents the risk that the counterparty to the financial instrument will fail to discharge an obligation and cause the Group to incur a financial loss. The Group's maximum credit exposure is the carrying amounts on the statement of financial position. The Group holds financial instruments with credit worthy third parties. 

 

At 30 June 2016, the Group held cash at bank.  These were held with financial institutions with a rating from Standard & Poors of -AA or above (long term). The Group has no past due or impaired debtors as at 30 June 2016 (2015: nil).

 

(d)      Fair value of financial instruments

The carrying amounts of financial instruments approximate their fair values.

 

(e)      Capital management

The Board's policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of the business. There were no changes in the Group's approach to capital management during the year. The Group is not subject to externally imposed capital requirements.

 

22.        Contingent Liabilities

There are no known contingent liabilities at as at 30 June 2016 and 30 June 2015.

 

 

23.        Share Based Payments

(a)   Recognised share based payment transactions

Share based payment transactions recognised either as operation expenses in the statement of comprehensive income, exploration expenditure on the statement of financial position or capital raising expenses in equity during the year were as follows:

	Consolidated
			2016 $	2015 $
Operating expenses
Employee share based payment (refer 23(b) below)			-	71,142
Exploration expenditure
Share based payment to vendor (refer 23(c) below)			2,200,000	400,000
Capital raising expenses
Share based payments to supplier (refer 23(c) below)			70,668	-

 

(b)   Employee share based payment scheme

The Group has established an employee share option scheme (ESOS). The objective of the ESOS is to assist in the recruitment, reward, retention and motivation of employees of Harvest Minerals Limited. Under the ESOS, the Directors may invite individuals acting in a manner similar to employees to participate in the ESOS and receive options. An individual may receive the options or nominate a relative or associate to receive the options. The plan is open to executive officers, nominated consultants and employees of Harvest Minerals Limited.

 

The fair value at grant date of options granted during a reporting period is determined using the Black Scholes option pricing model that takes into account the exercise price, the term of the option, the impact of dilution, the share price at grant date and expected price volatility of the underlying share and the risk free interest rate for the term of the option. No options were granted during the current reporting period.

 

(c)   Other share based payments

 

Exploration expenditure

During the financial year 22,000,000 (post-consolidation) shares were issued to Kmine Holdings Ltd as part of the agreed terms of acquisition in relation to the Capela and Sergi Potash Projects agreements. The fair value of the shares of $2,200,000 was determined by reference to the market value on the Australian Securities Exchange on the date the transaction. Refer to note 13 for further details.

 

 

 

 

23.       Share Based Payments continued

 

Capital raising expenses

The table below summaries options granted to suppliers and vendors:

2016   Grant Date	Expiry date		Exercise price	Balance at start of the year	Granted during the year	Exercised during the year	Expired during the year	Balance at end of the year	Exercisable at end of the year
				Number	Number	Number	Number	Number	Number
22 Dec 2015	18 Dec 2020		$0.0154	-	-	-	-	951,720	951,720
Weighted remaining contractual life  (years)				-	-	-	-	4.5	4.5
Weighted average exercise price				-	-	-	-	$0.0154	$0.0154

 

2015   Grant Date	Expiry date		Exercise price	Balance at start of the year	Granted during the year	Exercised during the year	Expired during the year	Balance at end of the year	Exercisable at end of the year
				Number	Number	Number	Number	Number	Number
15 Sep 2010	30 Jul 2014		$0.35	1,200,000	-	-	(1,200,000)	-	-
15 Sep 2010	15 Sep 2014		$0.25	3,000,000	-	-	(3,000,000)	-	-
30 Jan 2012	30 Jun 2015		$0.25	12,000,000	-	-	(12,000,000)	-	-
				16,200,000	-	-	(16,200,000)	-	-
Weighted remaining contractual life  (years)				0.8	-	-	-	-	-
Weighted average exercise price				$0.26	-	-	-	-	-

 

24.        Dividends

No dividend was paid or declared by the Group in the period since the end of the financial year and up to the date of this report.  The Directors do not recommend that any amount be paid by way of dividend for the year ended 30 June 2016.

 

The balance of the franking account is Nil as at 30 June 2016 (2015: Nil).

 

25.        Key management personnel disclosure

Details of the nature and amount of each element of the emoluments of the Directors and Executives of the Group for the financial year are as follows:

		Consolidated
		2016 $	2015 $

 

Short term employee benefits		585,553	120,000
Post employment benefits		-	-
Share based payments		-	-
Total remuneration		585,553	120,000

 

 

 

 

 

26.        Parent Entity Information

The following details information related to the parent entity, Harvest Minerals Limited, at 30 June 2016. The information presented here has been prepared using consistent accounting policies as presented in note 2.

		Parent
			2016 $	2015 $
	Current assets		2,717,229	1,570,414
	Non current assets		4,067,959	1,383,770
	Total Assets		6,785,188	2,954,184
	Current liabilities		77,560	659,161
	Total Liabilities		77,560	659,161
	Net Assets		6,707,628	2,295,023
	Issued capital		21,345,616	14,241,114
	Share based payment reserve		2,858,682	2,788,014
	Accumulated losses		(17,496,670)	(14,734,105)
	Total Equity		6,707,628	2,295,023
	Loss for the year		(2,762,565)	(1,730,486)
	Other comprehensive income for the year		-	-
	Total comprehensive loss for the year		(2,762,565)	(1,730,486)
Guarantees Harvest Minerals Limited has not entered into any guarantees in relation to the debts of its subsidiary.
Other Commitments and Contingencies Harvest Minerals Limited has commitments which are disclosed in note 16(b). There are no commitments to acquire property, plant and equipment. The Company has no contingent liabilities.