EQ Resources Limited Annual Report 2021

56 EQ Resources Limited Annual Report 2021 Notes to the Consolidated Financial Statements continued ANNUAL Report June 2021 Notes to the Consolidated Financial Statements 42  The release of an updated resource statement for the Company’s Mt Carbine Tungsten Project (refer ASX Announcement “Mineral Resource Update Drives Mt Carbine BFS Optimisation” dated 23 September 2021). 20. STATEMENT OF CASH FLOWS Reconciliation of net cash outflow from operating activities to operating loss after income tax 2021 $ 2020 $ (a) Operating profit / (loss) after income tax (4,574,191) (3,015,680) Depreciation and amortisation 588,545 219,655 Share based payments expense 279,446 45,000 Gain on disposal of assets - - Loss on disposal of assets 22,537 8,564 Impairment of capitalised exploration and evaluation assets - 140,855 (Revaluation) Devaluation of investment to market value (1,547) (773) Unrealised foreign exchange (gains) losses (323,179) 82,142 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 (1,607,890) (109,884) Decrease (Increase) in other assets (331,770) (380,607) Increase/(decrease) in trade and other creditors 2,131,327 52,373 Net cash outflow from operating activities (3,816,722) (2,948,321) (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 2021 comprised: Cash assets 3,504,721 2,989,859 Cash on hand 3,504,721 2,989,859 21. CONTRACT LIABILITIES 2021 $ 2020 $ Contract Liability - Sublease 1 Current 242,397 125,818 Non-current 1,650,481 1,784,638 1,892,878 1,910,456 Contract Liability - Offtake 2 Balance at beginning of the year 2,547,615 2,134,140 Plus: Offtake Final Contribution - 355,685 Less: Unrealised Foreign Exchange (Gain) / Loss (224,192) 57,790 2,323,423 2,547,615 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.