Sunday, 24 February 2019


INTERIM: AOR: Aorere 2018 Interim report to shareholders

29 Dec 2017 10:11NZX
Interim Report for the six months ended 30 September 2017
Financial results
Your directors submit the unaudited financial statements of Aorere Resources
Limited for the six months to 30 September 2017. The trading result for the
period was a loss of $139,000 (2016 - $521,000 loss).  A significant
proportion of last year''s loss arose after writing off the costs relating to
the scoping, financing and attempted acquisition of the Nevada gold project.

Operations Report
As at 23 November 2017, our portfolio comprised the following investments.
Portfolio Analysis as at   Per share  % total
Asian Minerals  248,268  0.02 31.7%
Chatham Rock  408,256  0.03 52.2%
Minor investments  48,187 0.00 6.2%
Akura  9,855 0.00 1.3%
Cash  130,261  0.01 16.6%
Accruals (adjusted for equity settlements) (62,270) (0.00) -8.0%

782,557  0.05 100.0%

Chatham Rock Phosphate
Chatham Rock Phosphate ("CRP") continues to remain the investment that we are
most involved with operationally and it presently represents 52.2% of our
assets. We are also the third largest shareholder in CRP with 4.1% and in
conjunction with AOR and CRP directors hold ~ 11%.
CRP was granted a mining permit in 2013 to develop New Zealand''s only
significant source of environmentally friendly pastoral phosphate fertiliser
and is now preparing for a revised environmental consent application.
CRP''s role is focused on delivering a secure and sustainable local supply of
low-cadmium phosphate that will reduce fertiliser run-off into waterways,
produce healthier soils and shrink fertiliser needs over time.
The resource has an estimated gross value of $5 to $7 billion, representing
one of New Zealand''s most valuable mineral assets and is of huge strategic
significance because phosphate is essential to maintain New Zealand''s high
agricultural productivity. Local and international investors have contributed
more than $37 million to develop the project''s financial viability,
environmental benefits and impacts, technical and logistical requirements,
local and international product uses.
CRP proposes to extract up to 1.5 million tonnes of phosphate nodules from
the top half metre of sand on identified parts of an 820km2 area on the
Chatham Rise, 450km off the west coast of New Zealand, in waters of 400m. The
earlier environmental consenting process has established extraction would
have no material impact on fishing yields or profitability, marine mammals or

In progressing plans to submit a new application, CRP notes that the recently
enacted Resource Legislation Amendment Bill has achieved helpful changes in
the permitting process. CRP continues to interact with iwi, academic,
industry and central government in order to get the message across that our
success will ensure that New Zealand can benefit from an environmentally
superior phosphate source.
In March 2017 CRP listed on the Toronto Stock Exchange to provide a more
useful share-trading platform for overseas shareholders and facilitate the
capital raising needed for the consenting process and beyond. Subsequently,
at the request of its European shareholder base, CRP is also quoted (?) on
the Frankfurt Stock Exchange.
As earlier announced CRP is also seeking to own other sustainable rock
phosphate sources, to move from being a single project company.
Asian Mineral Resources
Our investment in Asian Mineral Resources (AMR) dates back to 2000.
AMR is TSX.V listed, was profitable in cash flow terms, employed until
recently over 500 people and was said to be the largest tax payer in Hanoi.
It came a long way from being effectively a privately owned exploration
company with little cash and few prospects of finding any. Aorere was the
catalyst that made the difference, funding the company for several years,
introducing substantial investors, and arranging the TSX.V listing.
AMR mined the Ban Phuc nickel deposit from 2013 to 2016 at an accelerated
production rate and exhausted the high grade massive sulphide deposit. The
surrounding disseminated sulphide deposit remains uneconomic to mine so, a
decision was made last year to transition the operation into care and
maintenance. Management has secured the operational assets and established
on-site detailed care and maintenance compliance and reporting protocols and
AMR has an active exploration programme which includes field mapping,
trenching and soil sampling aimed at ranking and prioritising its 26 initial
exploration prospects.

Further design-planning and analysis of the Ban Phuc disseminated resource
will continue.

Recently AMR has appointed a new chief executive, Duncan Blount, and the AMR
board has been significantly restructured with Chris Castle remaining a
director along with representatives of two major shareholders.

New technology related investment
Following the successful recent financing we have made a modest investment in
a TSX.V listed lithium company that we believe has promising prospectivity.
The Future
We now hold stakes in three companies that still have forward momentum and
are very focused on widening the portfolio if appropriate investment
opportunities are identified.
Chris Castle        Peter
Managing director
26 November 2017
End CA:00312585 For:AOR    Type:INTERIM    Time:2017-12-29 10:11:58
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