Van Dieman Mines Share Discussion Threads

[jotoha2] 14/8/2009 16:25

This now looks like another scam of the highest order , what the hell was Mike Etheridge taken on for if the best he can is capitulate and call in the liquidators...sham!!!!!!!!!

[jotoha2] 14/7/2009 17:05

And now we have two none exec jumping , clearly they are not planning anything of consequence.

[jotoha2] 07/7/2009 10:11

Now that was a pretty rubbish RNS , what the hell have these numpties been doing since Feb 09, next they will say unable to trade further and have blown all the remaining cash on salaries...utter scam.

[dispenser] 25/2/2009 08:47

So looks like Galena don't just want 83.55% of the total voting rights, they want the whole company. Small shareholders sold out again by management

[vanbrussel] 20/11/2008 18:14

There is an outdated flash note by Fox-Davies (November 17, 2008)
Suppose it will be reworked in a couple of days

[daz] 20/11/2008 11:48

Yes, the dilution is much heavier than I'd expected and has been made worse by the offtake agreement, where unbelievably it looks like Trafigura can set the price at a LME rate that suits them, as well as deducting penalties, it looks fairly obvious that the company have had to concede a lot on pricing, alhtough they don't spell it out.

At least though they aren't bust and there ought to be upside once Endurance gets going and if the tin price recovers

[jotoha1] 20/11/2008 11:19

Now thats what I call being sharp, Galena will end up with 85% of equity having put in around £7M , oh those poor old insti , truly shafted!

[vanbrussel] 20/11/2008 10:02

Well, this is not even a Dutch treat:

In the event that all the Loan Notes and Warrants were exercised and assuming that the interest that may accrue is also converted into Ordinary Shares Galena would be interested in ► 689,660,800 Ordinary Shares representing an interest of 83.55% of the total voting rights of the Company

[daz] 14/11/2008 15:32

For once a decent update, the funding is still an issue but there looks to be considerable upside from this very depressed level. Mkt cap allowing for conversion of the warrants which are well out of the money is 3.5m.

tin price is a big variable but a price of 14,000 a ton would still be higher than when the feasibility study was undertaken and the company have indicated that operatings costs may be lower because of the revised mining method.

Quite a few big unknowns but could be a good punt, especially if sapphires can contribute revenue.

Company though is not surprisingly largely ignored given recent events but I think this could be an opportunity, if the dilution from Galena is not too heavy.

[dispenser] 14/11/2008 15:12

Not getting just tin and saphires and gold from this, but other metals

[vanbrussel] 28/10/2008 09:36

Wait and see, could be even better than current market conditions
There is no institutional investor that will get in above 1.50 pence

[daz] 28/10/2008 09:13

Given that on of primary functions of the stock exchange is to allow companies to raise capital and that VDM are only aiming to raise a modest sum to get them into production in a matter of weeks/months rather than years case really shows the market is completely disfunctional at the moment. The contrast with a few years ago when virtually any mining company could raise money couldn't be starker.

I can't understand why a couple of existing institutional investors can't stump up a few 100k to get the company into production and protect there investment. Galena have the company over a barrel and will drive a hard bargain, so it looks like the investors will get heavily diluted but at least it looks like the company will survive.

[dispenser] 28/10/2008 08:45

Extension to Bridging Loan (Van Dieman Mines)




RNS Number : 8173G
Van Dieman Mines plc
28 October 2008



28 October 2008
VAN DIEMAN MINES PLC (the "Company")

Extension to Bridging Loan

Van Dieman Mines Plc, (AIM:VDM), the AIM listed mining company with an alluvial tin and
sapphire mine in Tasmania announces that it has
secured a further extension to its short term bridging loan from Galena Special Situations
Master Fund Limited ("Galena"), as announced on
26 August 2008 (the "Bridging Loan").

The extension is for an additional A$2,000,000 and has been granted on the same terms as
the initial Bridging Loan and the further
extension of A$250,000 as announced on 15 October 2008 (the "Additional Bridging Loans").

Due to current market conditions and the immediate cash requirements to meet the Company's
current work programme the Company has
decided not to pursue, at this time, the proposed equity fundraising, referred to in the
circular sent to shareholders on 2 July 2008.
Instead, the Company and Galena are in advanced discussions to re-finance the original loan
facility of up to £5,000,000 granted on 30 June
2008 by Galena, the Bridging Loan and the Additional Bridging Loans by way of a new
convertible loan note of up to £6,500,000. Further
details regarding the proposed re-financing will be announced by the Company on entering into
the relevant documentation.

Related Party Transaction
Galena is currently directly or indirectly interested in 18,455,000 Ordinary Shares in the
Company representing an interest of 11.97 per
cent in the total voting rights of the Company. Galena is therefore a substantial shareholder
of the Company and considered to be a related
party as defined under the AIM Rules for Companies (the "AIM Rules"). The grant of the latest
extension to the bridging loan is classified
as a related party transaction for the purposes of the AIM Rules. Accordingly, the Directors
consider, having consulted with Grant Thornton
UK LLP, in their capacity as the Company's nominated adviser, that the extension of the
Bridging Loan is fair and reasonable insofar as the
shareholders of the Company are concerned.

Enquiries

VAN DIEMAN MINES PLC
Mike Etheridge, Chairman Tel: [phone]
Ron Goodman, CEO and Managing Director Tel: [phone]

GRANT THORNTON UK LLP
Gerry Beaney / Fiona Owen Tel: [phone]

FOX DAVIES CAPITAL LIMITED
Richard Hail, Corporate Finance Tel: [phone]

[dispenser] 28/10/2008 08:41

Well at least Galena still has confidence in VDM i cannot see that in these market conditions that they would throw more good money at VDM if they did not expect to get it back

[tyranosaurus] 02/10/2008 13:19

MSartin

I hope they are 10p in January but I wouldn`t put a bet on it.

[m5artin] 29/9/2008 09:15

Looking forward to january, will they get back to 10p a share, which is my average.

[dispenser] 28/9/2008 15:32

RAB capitol part of or problem?

VAN DIEMAN MINES PLC 18 Aug 2008

16.59%

Shares held 25,585,000

[chipperfrd] 27/9/2008 11:40

From Minesite:

Van Dieman Mans The Pumps At Scotia, Hoping For Full Production In January 2009

By Rob Davies

Van Dieman Mines is one of a growing number of miners that have experienced major problems on starting up. In contrast to many of the other troubled miners though, Van Dieman seems to have successfully addressed the problems and is able to show some progress. The company has had a number of problems over the years, but the main one recently was a problem with a contained aquifer that made working conditions in the Scotia tin and sapphire mine very wet and forced the company to change its mining method.

To address the problem the company has adopted the sump and pump method which new chief executive Ron Goodman says is now working well. This is dewatering the overburden and is expected to allow access to the orebody this month. He is keen to emphasise that the problem is not that the orebody is below the water table, so the approach taken is sensible. It's not as if they are attempting to pump Tasmania dry. The other issue that caused problems when the mine started was uncertainty about tin grades. Ron is pleased to report that confirmatory drilling started on last week on Monday after access was gained, and he expects to get the results in four to six weeks.

Now that those two issues are being dealt with Ron Goodman and his team can focus on what mining is all about, getting the production started. The process plant has been modified to accept wet feed instead of dry feed and Ron says everything is on track to start production in December with full output now expected in January 2009. Commissioning of half the plant, known as Side B, will take place over the next two months on the first module. The second one, Side A, will be done in November and December. Each side has the capacity to process 300 cubic metres an hour.

One further problem that's not yet been solved involves the parameters of the operating license. Not the geographical parameters, but the times it's allowed to operate. At the moment the mine only has permission from the authorities to operate for 12 hours a day, five days a week. To get the best return out of any capital equipment it needs to run all the time. To that end Ron says negotiations have begun with the authorities to apply for permission to run 24 hours a day, seven days a week. The biggest objection it seems is the noise issue, but Ron is optimistic that that can be resolved.

The change of mining plan meant that the mine had more plant than it needed, and so Van Dieman has set out to sell the unwanted kit. These sales are going well, it seems, although Ron is keen to stress it is not a fire sale and the company will not undersell its assets. Finally, in a concrete demonstration of its commitment to cut costs the company is closing its head office and moving it down to Tasmania. Ron didn't have the exact figure on how much that would save but he reckoned offices in Gladstone were a whole lot cheaper than the ones in New South Wales which used to feature so prominently in Van Dieman promotional material. Like most junior stocks these days Van Dieman's shares are languishing at new lows, and with a market capitalisation of about £8 million it's well below most people's radar screen. Yet tin is one of the metals whose price has held up well and it is obvious that the management has a clear strategy to resolve the problems. Which, these days, is more than can be said of some others.

[dispenser] 26/9/2008 16:28

A buy now of £106,280 now shows that someone is either very brave, or knows something that we dont know. Lets hope that productin can be started before the placing in December

[pachandl] 26/9/2008 15:56

Perhaps we have finally turned the corner - although I would prefer some confirmation of 'resources' from the current drilling programme

[dispenser] 26/9/2008 14:03

Large buy gone through?

[dispenser] 26/9/2008 14:03

Van Dieman Mines Interim Results




RNS Number : 3720E
Van Dieman Mines plc
26 September 2008



26 September 2008
VAN DIEMAN MINES PLC
(AIM: VDM)

Interim Results

Van Dieman Mines plc (AIM: VDM), the AIM listed mining company which is developing its
100% owned tin - sapphire mines in Tasmania,
Australia, announces its Interim Results for the period ended 30 June 2008.

Highlights:

* Restructuring of Board and Company
* Company to adopt a Revised Mine Development Plan for Scotia and Endurance Projects
* Production at Scotia expected to commence in December 2008
* The Company has commenced initial 1000m of 5000m confirmation drilling programme
* Loan facility of up to £5M from Galena Special Situations Master Fund Limited
("Galena")

Post Period:

* Review of Scotia Project completed
* Tasmanian Government regulatory authorities have given approval to proceed with
modified mining methods
* Bridge Loan of £0.75M provided by Galena
* Closure of the Company's Sydney office and relocation to Tasmania
* Bill Wise and Harry Stacpoole, nominees of Galena, joined the Board on 29 August
2008



ENQUIRIES:

VAN DIEMAN MINES plc Tel: [phone]
Ron Goodman, Managing Email:
Director ron.goodman@
vandiemanmines.com
GRANT THORNTON UK LLP Tel: [phone]
Fiona Owen

FOX-DAVIES CAPITAL LIMITED Tel: [phone]
Daniel Fox-Davies,
Corporate Finance

LOTHBURY FINANCIAL Tel: [phone]
Michael Padley / Libby
Moss



Chairman's Statement

The six months to 30 June 2008 were particularly challenging for Van Dieman Mines, with a
wholesale restructuring of the Board and
Management of the Company, the departure of two of the founding Executive Directors, and the
realisation that there were significant flaws
in the mining and processing plan put in place by the previous operational management. In
March 2008, the Board instituted a thorough review
of all aspects of the Scotia Project and related operations. The initial outcomes of that
review were announced to the market on 16 May
2008, and plans have been put in place to commence production at Scotia in December 2008.

Progress During the First Half of 2008
There was significant progress in some site works early in 2008, with commencement of
earthworks, dam construction and plant erection.
However, it became increasingly clear that there were significant flaws in the original mining
and processing plan, and in some critical
aspects of the operational management. By March 2008, it had become apparent to the Board that
the previously indicated end-Q1 production
start date would not be met, resulting in the Board instituting a comprehensive review of all
aspects of the Scotia Project.
Prior to the commencement of the review, Clive Trist resigned as Chief Executive Officer
and Managing Director of the Company, and was
replaced by Ken Frey, previously Executive Director Marketing. Soon after commencement of the
review, Neil Kinnane, Executive Director,
Exploration and Operations, was removed from the Board of Van Dieman Mines and left the
Company. Two of the site management team also left
the company. Ron Goodman, who had joined the Board as a Non-Executive Director in October
2007, was appointed Executive Director, Operations
to manage the review process and to report its findings and recommendations to the Board.
Leading experts in the geology, mining and
processing of alluvial deposits were commissioned to work with, and report to, Ron Goodman and
the Mining Manager, Jim Semmens, who was
appointed in January 2008.
The review, which was reported upon in a press announcement on 16 May 2008, confirmed the
concerns the Board had about the original
Scotia Project design. The main findings of the operational review were that the proposed
mining methods and significant components of the
original process plant design for Scotia (and also planned for Endurance) were inappropriate,
given the water-saturated characteristics
encountered in initial pre-stripping of the overburden and pre-commissioning of the process
plant.
The Board carefully considered and accepted the initial findings and key recommendations
of the review, which resulted in the adoption
of a Revised Mine Development Plan. The revised plan will result in significant changes to
aspects of mining and processing at both the
Scotia and Endurance Projects. These will include examination and trialling of alternative and
potentially simpler methods to deliver the
"wet" ore from the mine to the plant. It also involves ongoing investigations to further
reduce risk and to optimise the total mining
operation, including drilling, dewatering, trial mining and bulk sampling. Some modifications
will also be required to the Tin Shed
Concentrating Facility.
The Company expects that there will be material benefits to the Scotia and Endurance
Projects that will result from the implementation
of the Revised Mine Development Plan including reduced capital and operating costs. The
current expectation is that overall capital costs
may be reduced by an estimated A$4M to A$6M at the Scotia and Endurance Projects on the basis
of expected disposal proceeds and termination
of surplus equipment on order. Subject to the mining and ore transport methods finally
adopted, operating costs are also expected to be
lower, although those savings cannot be quantified until more information is available from
the drilling, dewatering, trial mining and
processing.
The Board also accepted the conclusion from the Project Review that the basis upon which
the previous management team determined the
reserves and resources was not consistent with current best practice. This is largely because
of the almost total reliance on drilling data
that is 70 to 100 years old. The Company has therefore embarked on a limited (~5,000 m)
confirmatory drilling programme. The proposed
drilling programme will initially focus on the Scotia Project resource, and the Company has
commenced an initial programme of ~1,000m
covering the area of the initial phase of operations.

Subsequent Events
On 30 June 2008, the Company announced a loan facility of up to £5M from Galena Special
Situations Master Fund Limited ('Galena').
Following shareholders approval of the relevant issuance authorities at the general meeting of
29 August 2008, Galena is now entitled to
convert the first £3M into shares in Van Dieman Mines Plc at 6p per share. The balance of
£2M is uncommitted. As previously announced, the
Company intends to undertake a placement of shares prior to 31 December 2008.
On 26 August 2008, the Company announced that a Bridge Loan of £0.75M had been made by
Galena to provide additional working capital
through to completion of the share placement. It is currently intended that the Bridge Loan be
repaid from the share placement proceeds.
On 6 August 2008, the Tasmanian Government regulatory authorities gave approval to proceed
with the modified mining method. They will
monitor progress via normal reporting and inspection procedures. The two principal government
agencies involved have been very supportive,
and the Company will work closely with them as the mine plan progresses and is further
refined.
As announced on 18 August 2008, the Board has appointed Ron Goodman, previously Executive
Director, Operations, as CEO and Managing
Director. Ron replaces Ken Frey who will retain a role in the development of the Company's
sapphire joint venture. The Board thanks Ken for
his commitment and energy during the challenging times over the last six months. The Board has
taken this decision in recognition of the
imperative for the Company to focus on the technical and operational challenges in bringing
its Scotia and Endurance projects into
production. Ken Frey decided not to stand for re-election at the Annual General Meeting
("AGM") of the Company and resigned from the Board
at that time.
Additionally, the Board has decided to close the Company's Sydney office and to transfer
the bulk of the administration and financial
control functions to Tasmania. The move, which will be completed over the coming months, will
provide savings on overhead costs and allow
for a more cohesive corporate structure for the day to day running of the Company. The Board
has also identified a new CFO and Company
Secretary, Ms Lisa Norden CPA, who will join the Company on 1 October 2008.
On 29 August 2008, as previously announced, Bill Wise and Harry Stacpoole, as nominees of
Galena, became Non-Executive Directors of Van
Dieman Mines Plc.

Looking Forward
On 26 August 2008, the Company provided an operational update on the Scotia and Endurance
Projects. Progress has been encouraging with
the programme to progressively dewater and strip the overburden well underway, and planning to
deliver ore to the primary process plants in
a slurry form well in hand. Modifications have also been made to the primary process plant as
it was originally designed to receive dry
feed. Commissioning of one of the twin halves of the primary processing plant is expected to
take place during October and November, with
modifications to the second half of the plant to commence in October and final commissioning
of the full plant in November and December.
Production at Scotia is expected to commence in December 2008.
The process of completing the loan facility over recent months and the consequent delay in
accessing the Company's preferred contractor
meant that drilling only commenced at Scotia in mid-September. This is highly specialised
drilling and the Company, following a review of
all other options, was committed to using this contractor because of the equipment and
experience that they could provide. Initially, the
Company will be limiting the planned drilling programme to about 1,000m, covering the area
proposed for the initial phase of the operations.
A processing, sampling and assay protocol for concentrate from these plants and samples
from the proposed drilling programme has been
agreed by the Company's operational management and a nearby assay laboratory. It is expected
that the Company will achieve 1 to 2 week
turnaround from drilling/bulk sampling to receiving the tin assay by undertaking much of the
sample preparation on site.
The Board is actively reviewing ways to significantly increase production rate and reduce
production risk at Scotia following
commissioning. Increasing production is important because the financial performance of the
project, and the Company, are highly leveraged to
increased production as revenues increase at a faster rate than do costs. The key components
of the potential expanded production are access
to multiple mining sites, increasing plant efficiency and throughput, and increasing mining
and plant operating hours. All three of these
are currently being addressed, and the Company is confident of a positive outcome.
The Development Plan and Environmental Management Plan (DPEMP) for Endurance is under
consideration by the Tasmanian government
regulatory authorities, who understand that the mining method there is likely to change due to
wet mining conditions. The Company will be
reviewing mining options at Endurance as it learns from early mining and commissioning at
Scotia.
Your Board welcomes Galena as a strategic partner and is extremely grateful for their
ongoing financial support. We are delighted to
welcome Galena's nominees, Bill Wise and Harry Stacpoole, to the Board. I would also like to
express my personal appreciation to my other
two fellow directors, Ron Goodman and Nigel Christie , who have invested more time, energy
and expertise into the Company than either
considered they would when they joined the Board.

Mike Etheridge
Non-Executive Chairman










VAN DIEMAN MINES PLC

CONSOLIDATED INTERIM FINANCIAL STATEMENTS
for the period ended 30 June 2008

CONSOLIDATED INTERIM INCOME STATEMENT

Six months to Six months to Year to
30 June 2008 30 June 2007 31 December 2007
Note un-audited un-audited Audited
£ £ £


Mining expenses (12,548) (15,774) (247,106)
Depreciation expense (169,759) (57,066) (135,699)
Impairment of
plant & equipment 2(i) (564,061) - -
Administrative expenses (1,285,036) (489,514) (1,611,369)

(2,031,404) (562,354) (1,994,174)

Interest received 49,535 81,086 48,699
Finance costs (138,069) - (23,646)

Net financing income / (88,534) 81,086 25,053
(expense)

Loss for period from (2,119,938) (481,268) (1,969,121)
continuing
operations
Loss on non-current (117,154) - -
assets held for
re-sale

Loss for the period (2,237,092) (481,268) (1,969,121)

Basic and diluted
loss per share 3 ( 1.45p) (0.52p) (1.82p)




CONSOLIDATED INTERIM STATEMENT OF RECOGNISED
INCOME AND EXPENSE

Six months to Six months to Year to
30 June 2008 30 June 2007 31 December 2007
un-audited un-audited audited
£ £ £
Exchange difference on 738,106 147,472 495,571
translation of foreign subsidy
Loss for the period (2,237,092) (481,268) (1,969,121)
Total recognised income and (1,498,986) (333,796) (1,473,550)
expense for the period


VAN DIEMAN MINES PLC

CONSOLIDATED INTERIM FINANCIAL STATEMENTS
for the period ended 30 June 2008

CONSOLIDATED INTERIM BALANCE SHEET
Six months to Six months to Year to
30 June 2008 30 June 2007 31 December 2007
un-audited un-audited audited
£ £ £
ASSETS
Non-current assets
Property, plant and equipment 8,086,387 2,847,578 6,224,896
Deferred exploration costs 2,515,000 2,757,195 2,227,393
Trade & other receivables 299,611 70,739 255,487
10,900,998 5,675,512 8,707,776
Current assets
Trade and other receivables 288,516 41,270 302,422
Cash & cash equivalents 477,232 55,874 3,896,070
765,748 97,144 4,198,492

Non-current assets held for 1,780,746 - -
re-sale
Total assets 13,447,492 5,772,656 12,906,268

EQUITY
Issued Capital 1,541,921 916,921 1,541,921
Share premium account 11,062,144 6,497,169 11,087,144
Warrant reserve 484,784 - 484,784
Translation reserve 1,352,996 266,791 614,890
Accumulated losses (6,386,503) (2,661,558) (4,149,411)

Total equity 8,055,342 5,019,323 9,579,328

LIABILITIES
Non-current liabilities
Interest-bearing loans and 425,359 305,352 639,150
borrowings
Current liabilities
Interest-bearing loans and 2,259,808 95,450 1,959,193
borrowings
Trade and other payables 1,523,176 352,531 728,597
3,782,984 447,981 2,687,790
Owing on non-current assets 1,183,807 - -
held
for re-sale
Total liabilities 5,392,150 753,333 3,326,940

Total equity & liabilities 13,447,492 5,772,656 12,906,268

VAN DIEMAN MINES PLC

CONSOLIDATED INTERIM FINANCIAL STATEMENTS
for the period ended 30 June 2008

CONSOLIDATED INTERIM STATEMENT OF CHANGES OF EQUITY

Share Share premium Warrant reserve Translation
Accumulated losses Equity
capital account reserve
Total
£ £ £ £
£ £
Balance at 916,921 6,497,169 119,319
(2,180,290) 5,353,119
1 January 2007 -
Exchange differences - - 147,472
- 147,472
on translation of
foreign operations


-
Loss for the period - - - -
(481,268) (481,268)
Balance as at 916,921 6,497,169 266,791
(2,661,558) 5,019,323
30 June 2007

-

£ £ £ £
£ £
Balance at 1,541,921 11,087,144 614,890
(4,149,411) 9,579,328
1 January 2008

484,784
Exchange differences - - - 738,106
- 738,106
on translation of
foreign operations
Transaction costs - (25,000) - -
- (25,000)
Loss for the period - - - -
(2,237,092) (2,237,092)
Balance as at 1,541,921 11,062,144 484,784 1,352,996
(6,386,503) 8,055,342
30 June 2008

VAN DIEMAN MINES PLC

CONSOLIDATED INTERIM FINANCIAL STATEMENTS
for the period ended 30 June 2008

CONSOLIDATED INTERIM CASH FLOW STATEMENT

Six months to Six months to Year to
30 June 2008 30 June 2007 31 December 2007
un-audited un-audited audited
£ £
£
Cash flows from
operating activities
Loss after taxation (2,148,558) (481,268) (1,994,174)
Adjustments for
Depreciation 169,759 57,066 135,699
Interest Paid (138,069) - (23,646)
Decrease/(Increase) in trade (30,218) (37,139) (256,395)
and other receivables
Increase/(Decrease) in trade 978,282 23,393 168,384
payables
Net cash used in (1,168,804) (1,970,132)
operating activities (437,948)

Cash flows from
investing activities
Acquisition of property, plant (2,578,791) (862,487) (2,699,318)
and equipment and exploration
costs
Interest received 49,535 81,086 48,699
Net cash used in investing (2,529,256) (781,401) (2,650,619)
activities
Cash flows from financing
activities
Proceeds from other loans 480,885 - 1,634,913
Proceeds from issue of share - - 6,324,000
capital
Transaction costs (25,000) - (624,241)
Payment of finance lease & (304,460) (58,576) (228,344)
hire purchase liabilities
Net cash used provided from 151,425 (58,576) 7,106,328
financing activities

Net increase / (decrease) in (3,546,635) (1,277,925) 2,485,577
cash and cash equivalents
Foreign exchange movement 127,797 (41,799) 34,895
Cash and cash equivalents 3,896,070 1,375,598 1,375,598
at beginning of period
Cash and cash equivalents 477,232 55,874 3,896,070
at end of period




VAN DIEMAN MINES PLC

NOTES TO THE UNAUDITED INTERIM FINANCIAL
STATEMETNS
FOR THE SIX MONTHS TO 30 JUNE 2008

General Information
Van Dieman Mines Plc ("the Company") is a company incorporated in England and Wales under the
Companies act 1985. The Company's registered
office is 27/28 Eastcastle Street, London, WIW 8DH.

The principal activity of the Company and its subsidiary ("the Group") is the exploration for
tin and sapphires and to develop and operate
mining activities in Northern Tasmania, Australia.

The Group's principal activity is carried out in Australian dollars. The interim results are
presented in British Pounds as this is the
currency of the country (the UK) from which the Group operates.

1. Application of
the going concern basis

The Group's ability to continue as a going concern and develop and operate its mining
activities are primarily dependent upon its ability
to
fund its development and exploration programmes and to manage and generate positive cash
flows from operations in the future, which will
be
significantly affected by tin and sapphire prices.

The Directors have carried out a review of the Scotia Project, and adopted a Revised Mine
Development Plan. The Board concluded that
further
finance was required to complete development of the Scotia and Endurance mines and provide
adequate working capital until the Group
achieves
positive operating cash flows.

On 30 June 2008 the Company made an announcement concerning a Loan Facility of up to £3
million from Galena Special Situations Master Fund
Limited ("Galena") which may be extended at Galena's discretion by up to a further £2
million (see www.vandiemanmines.com). The
announcement
included the following key information:

* Galena granted an immediate loan facility, subject to
certain conditions set out below, of up to £3
million, to be drawn down in part to fund the Company's
immediate working capital requirements, at the
sole
discretion of Galena (the "Loan Facility"). Under the terms
of the facility agreement a further £2 million
may be drawn down at the discretion of Galena to the extent
that the Company is not able to raise that sum
through an equity issue.
* The Loan Facility was conditional upon the Australian
Foreign Investment Review Board ("FIRB")
consenting
to Galena taking registered security over the assets of the
Company and Van Dieman Mines Pty Ltd. Consent
was received from the FIRB on 9 July 2008. The Loan Facility
is also subject to the shareholders of the
Company passing the resolutions at the general meeting of the
company on 29 August 2008 ("General
Meeting").

* At the General Meeting, resolutions increasing the
authorised share capital of the Company and
increasing
the Directors' authorities under sec
The Directors have therefore concluded that it is appropriate to prepare accounts on the
going concern basis. However, there can be no
certainty that the fund raising will be sufficient and, as with many projects of this nature,
there remain significant uncertainties as to
the timing and amount of forecast cash flows. These financial statements do not reflect the
adjustments to carrying values of assets and
liabilities and the reported expenses and balance sheet classifications that would be
necessary should the going concern assumption be
inappropriate, and these adjustments could be material.

2. Significant
accounting policies

The consolidated financial statements of the Company for the 6 months ended 30 June 2008
comprise the Company and its subsidiary.

(a) Basis of preparation

The financial statements are presented in British Pounds, rounded to the nearest Pound.

The interim results have been prepared in accordance with International Accounting Standard
34 "Interim Financial Reporting".

The annual financial statements have been prepared in accordance with International Financial
Reporting Standards (IFRS).

The interim financial statements have been prepared under the historical cost convention. The
financial information is in conformity with
generally accepted accounting principles and requires the use of estimates and assumptions
that affect the reported amounts of revenues
and
expenses during the reporting period. Although these estimates are based in management's best
knowledge of the amount, event or actions,
actual results ultimately may differ from those estimates.
The financial statements do not constitute statutory accounts within the meaning of Section
240 of the Companies Act 1985. They have been
prepared on a going concern basis in accordance with the International Reporting Standards.
The accounting policies applied in preparing
the
financial statements consistent with those that were adopted in the Group's 2007 statutory
accounts. The financial statements for the
periods ended 30 June 2008 and 30 June 2007 have not been audited.

The principal accounting policies adopted are set out below.

(b) Basis of consolidation
(i) Subsidiary

A subsidiary is an entity controlled by the Company. Control exists when the Company has the
power, directly or indirectly, to govern the
financial and operating policies of an entity so as to obtain benefits from its activities.
In assessing control, potential voting rights
that presently are exercisable or convertible are taken into account. The financial
statements of the subsidiary are included in the
consolidated financial statements from the date that control commences until the date that
control ceases.

(ii) Transactions eliminated on
consolidation

Intra-group balances and any unrealised gains and losses or income and expenses arising from
intra-group transactions,
are eliminated in preparing the consolidated financial statements.

(c) Foreign currency
(i) Functional and presentation currency
Items included in the financial statements of each of the Group's entities are measured using
the currency of the
primary economic environment in which the entity operates ("the functional currency"). The
consolidated financial
statements are presented in British Pounds, which is the Group's presentation currency and
the functional currency of
the Company.
Transactions in foreign currencies are translated into functional currency at the foreign
exchange rate ruling at the
date of the transaction. Monetary assets and liabilities denominated in foreign currencies at
the balance sheet date
are translated into the functional currency at the foreign exchange rate ruling at that date.
Foreign exchange
differences arising on translation are recognised in the income statement. Non-monetary
assets and liabilities that
are measured in terms of historical cost in a foreign currency are translated using the
exchange rate at the date of
the transaction.

(ii) Financial statements of foreign
operations

The assets and liabilities of foreign operations are translated to British Pounds at foreign
exchange rates ruling at
the balance sheet date. The revenues and expenses of foreign operations are translated to
British Pounds at rates
approximating to the foreign exchange rates ruling at the dates of the transactions.

(iii) Net investment in foreign operations

Exchange differences arising from the translation of the net investment in foreign operations
are taken to translation
reserve. They are released into the income statement upon disposal.

(d) Property, plant and equipment
(i) Owned assets

Items of property, plant and equipment are stated at cost. The cost of self-constructed
assets includes the cost of
materials, direct labour, the initial estimate, where relevant, of the costs of dismantling
and removing the items and
restoring the site on which they are located.

Where parts of an item of property, plant and equipment have different useful lives, they are
accounted for as
separate items of property, plant and equipment.

(ii) Leased assets

Leases in terms of which the Group assumes substantially all the risks and rewards of
ownership are classified as
finance leases.

(iii) Subsequent costs

The Group recognises in the carrying amount of an item of property, plant and equipment the
cost of replacing part of
such an item when that cost is incurred if it is probable that the future economic benefits
embodied with the item
will flow to the Group and the cost of the item can be measured reliably. All other costs are
recognised in the income
statement as an expense as incurred.
(iv) Depreciation

Depreciation is charged to the income statement or capitalised as part of the exploration and
evaluation costs where
appropriate, on a straight-line basis over the estimated useful lives of each part of an item
of property, plant and
equipment. Land is not depreciated. The estimated useful lives are as follows:

* buildings
40 years
* mining plant and equipment
3 to 15 years
* motor vehicles
7 years
* computer equipment
3 years
* fixtures, fittings and equipment
3 years

Depreciation is not charged on mining plant and equipment until mining activities have
commenced.

(e) Non-current assets held for sale
The Group, in adopting a revised mine development plan, holds plant and equipment surplus to
its needs. Buyers for
this surplus plant and equipment are being actively sought.
A fair market value has been established by the Group.
Non-current assets held for sale, are valued at the lower of carrying amount and fair value,
less costs to sell.

(f) Intangible assets
(i) Exploration and evaluation costs

These comprise costs directly incurred in exploration and evaluation as well as the cost of
mineral licences. Once
local title to the project area is obtained, exploration and evaluation costs are capitalised
as intangible assets
pending determination of the feasibility of the project. When the existence of economically
recoverable reserves is
established the related intangible assets are reclassified as mine development costs.

Capitalised exploration expenditures are reviewed for impairment losses. Impairment reviews
for deferred exploration
and evaluation costs are carried out on a project by project basis, with each project
representing a potential single
cash generating unit. An impairment review is undertaken when indicators of impairment arise
but typically when one of
the following circumstances apply:

* unexpected geological occurrences that render the resource uneconomic;
* title to the asset is compromised;
* variations in metal prices that render the project uneconomic; and
* variations in the currency of operation.

Where a project is abandoned or is determined not to be economically viable, the related
costs are written off. The
recoverability of deferred exploration and evaluation costs is dependent upon a number of
factors common to the
natural resource sector. These include the extent to which the Group can establish
economically recoverable reserves
on its properties, the ability of the Group to obtain necessary financing to complete the
development of such reserves
and future profitable production or proceeds from the disposition thereof.

(ii) Subsequent expenditure

Subsequent expenditure on capitalised intangible assets is capitalised only when it increases
the future economic
benefits embodied in the specific asset to which it relates. All other expenditure is
expensed as incurred.

(g) Trade and other receivables

Trade and other receivables are stated at amortised cost.

(h) Cash and cash equivalents

Cash and cash equivalents comprise cash balances and call deposits. Bank overdrafts that are
repayable on demand and
form an integral part of the Group's cash management are included as a component of cash and
cash equivalents for the
purpose of the statement of cash flows.

(i) Impairment

The carrying amounts of the Group's assets (except deferred tax assets - see accounting
policy (m)), are reviewed at
each balance sheet date to determine whether there is any indication of impairment. If any
such indication exists, the
asset's recoverable amount is estimated - see accounting policy (i)(i).

An impairment loss is recognised whenever the carrying amount of an asset or its
cash-generating unit exceeds its
recoverable amount. Impairment losses are recognised in the income statement.

As a result of mine plant modifications in line with the current revision of the mine plan,
costs incurred to date
were reviewed and have resulted in an impairment loss of £564,061 being written off in the
Income Statement for the
period ended 30 June 2008.

Impairment losses recognised in respect of cash-generating units are allocated first to
reduce the carrying amount of
any goodwill allocated to cash-generating units (group of units) and then, to reduce the
carrying amount of the other
assets in the unit (group of units) on a pro rata basis. Deferred exploration and evaluation
costs are reviewed for
impairment in accordance with accounting policy (f)(i).

(i) Calculation of recoverable amount

The recoverable amount of other assets is the greater of their net selling price and value in
use. 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. For an asset that
does not generate largely independent cash inflows, the recoverable amount is determined for
the cash-generating unit
to which the asset belongs.

(ii) Reversals of impairment

In respect of other assets, an impairment loss is reversed if there has been a change in the
estimates used to
determine the recoverable amount.

An impairment loss is reversed only to the extent that the asset's carrying amount does not
exceed the carrying amount
that would have been determined, net of depreciation or amortisation, if no impairment loss
had been recognised.

(j) Provisions

A provision is recognised in the balance sheet when the Group has a present legal or
constructive obligation as a
result of a past event, and it is probable that an outflow of economic benefits will be
required to settle the
obligation. If the effect 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.

(k) Trade and other payables

Trade and other payables are stated at amortised cost.

(l) Expenses

(i) Operating lease payments
Payments made under operating leases are recognised in the income statement on a
straight-line basis over the term of
the lease. Lease incentives received are recognised in the income statement as an integral
part of the total lease
expense.

(ii) Finance lease payments

Minimum lease payments are apportioned between the finance charge and the reduction of the
outstanding liability. The
finance charge is allocated to each period during the lease term so as to produce a constant
periodic rate of interest
on the remaining balance of the liability.

(iii) Borrowing costs

Borrowing costs are recognised in the income statement.

(m) Income tax

Income tax on the profit or loss for the year comprises current and deferred tax. Income tax
is recognised in the
income statement except to the extent that it relates to items recognised directly in equity,
in which case it is
recognised in equity.
Current tax is the expected tax payable on the taxable income for the year, using tax rates
enacted at the balance
sheet date, and any adjustment to tax payable in respect of previous years.

Deferred tax is provided using the balance sheet liability method, providing for temporary
differences between the
carrying amounts of assets and liabilities for financial reporting purposes and the amounts
used for taxation
purposes. The following temporary differences are not provided for: the initial recognition
of assets or liabilities
that affect neither accounting nor taxable profit, and differences relating to investments in
subsidiaries to the
extent that they will probably not reverse in the foreseeable future. The amount of deferred
tax provided is based on
the expected manner of realisation or settlement of the carrying amount of assets and
liabilities, using tax rates
enacted or substantively enacted at the balance sheet date.

A deferred tax asset is recognised only to the extent that it is probable that future taxable
profits will be
available against which the asset can be utilised. Deferred tax assets are reduced to the
extent that it is no longer
probable that the related tax benefit will be realised.

Additional income taxes that arise from the distribution of dividends are recognised at the
same time as the liability
to pay the related dividend.

(n) Mine development costs

Exploration costs are capitalised as intangible fixed assets until a decision is made to
proceed to development.
Related costs are transferred to mine development costs. Before reclassification, exploration
costs are assessed for
impairment and any impairment loss recognised in the income statement. Subsequent development
costs are capitalised
under mining assets, together with any amounts transferred from intangible exploration
assets. Mining assets are
amortised over the estimated life of the commercial ore reserves on a unit of production
basis.

(o) Share based payments

The Group has applied the requirements of IFRS2 in respect of warrants issued in
consideration of capital raising
costs incurred during the year and which have been credited to the warrant reserve.

The fair value of services received in return for warrants granted is measured by reference
to the fair value of the
warrants issued, at date of issue. This estimate is determined using an appropriate valuation
model considering the
effects of the exercise conditions, expected exercise period and the payment of dividends by
the Company.

3. Earnings/(Loss)


Six months to Six months to
30 June 2008 30 June 2007
£ £

Basic loss per share (1.45p) (0.52p)

The calculation of basic loss per share is based on a loss for the period of £2,237,092
(2007:£481,268) and 154,192,107 ordinary shares (2007: 91,692,107 ordinary shares), being
the weighted average number of ordinary shares in issue during the period.

4. Capital commitments
The Company has committed to purchase plant and equipment from a United States supplier
with a total contract value of £896,424. At 30
June 2008, the Company had paid a total of £519,786 against this contract. Upon completion of
plant construction in the United States to
contract specification, 95% of the total contract value is payable, the remaining 5% being
retained until erection and final commissioning
of the plant in Tasmania.

This information is provided by RNS
The company news service from the London Stock Exchange

END

[m5artin] 09/9/2008 16:34

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[vermilion1966] 09/9/2008 08:20

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