We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Register for streaming realtime charts, analysis tools, and prices.
| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Avocet Mining Plc | LSE:AVM | London | Ordinary Share | GB00BZBVR613 | ORD 1P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 13.10 | 11.40 | 14.80 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
From May 2019 to May 2024
TIDMAVM
RNS Number : 9862I
Avocet Mining PLC
01 August 2012
Avocet Mining Unaudited Interim Results for the six months ended 30 June 2012
2012 SECOND QUARTER HIGHLIGHTS
-- Gold production of 32,917 oz. (Q1 2012: 38,296 oz.) -- Cash costs US$1,006 per oz. (Q1 2012: US$850 per oz.)
-- Net cash generated by operating activities of US$20.7 million (Q1 2012: US$13.9 million)
-- Average realised gold price of US$1,439 per oz. (Q1 2012: US$1,543 per oz.) -- EBITDA of US$8.7 million (Q1 2012: US$28.1 million) -- Cash of US$80.4 million, with external debt reduced to US$17.0 million -- No dividend to be paid in respect of the 2012 financial year
CORPORATE AND OPERATIONAL UPDATE
-- David Cather appointed CEO and subsequently Executive Director, following resignation of Brett Richards
-- Operational review by Alexander Proudfoot completed; operational improvements identified
-- On-site management team strengthened
-- Scoping study on Inata expansion, including metallurgical test work results, expected to be completed in Q3 2012
KEY FINANCIAL METRICS[1]
Hot Features
Premium
Quarter ended Quarter ended Quarter ended Quarter ended
30 June 30 June 31 March 31 March
2012 2011 2012 2011
Period Unaudited Unaudited Unaudited Unaudited
================================= ============== ============== ============== ==============
Gold production (ounces) 32,917 39,423 38,296 47,963
================================= ============== ============== ============== ==============
Average realised gold price
(US$/oz.) 1,439 1,161 1,543 1,172
================================= ============== ============== ============== ==============
Cash production costs (US$/oz.) 1,006 677 850 533
================================= ============== ============== ============== ==============
Profit before tax (US$000) 2,458 14,862 20,839 12,570
================================= ============== ============== ============== ==============
Earnings per share (US cents
per share) 0.81 6.32 6.33 4.47
================================= ============== ============== ============== ==============
EBITDA(2) (US$000) 8,679 16,600 28,101 25,403
================================= ============== ============== ============== ==============
Net cash generated by operating
activities (US$000) 20,717 2,414 13,852 25,940
================================= ============== ============== ============== ==============
[1] Key Financial Metrics are presented for continuing operations only, and represent results excluding the Group's former operations in South East Asia, which were sold in June 2011. Refer to note 2 of these interim financial statements for further information.
2EBITDA represents earnings before exceptional items, finance items, tax, depreciation and amortisation. EBITDA is not defined by IFRS but is commonly used as an indication of underlying cash generation.
David Cather, Chief Executive Officer, commented:
"When I joined Avocet in May 2012, my key objective was to understand the operating challenges at Inata. My appointment as Chief Executive officer has allowed me to put this objective at the core of the Company's strategy. The immediate challenges relate to refining our understanding of the Inata orebody, and ensuring mining and plant operations are optimised to deliver the maximum value to shareholders. In addition, we will look to expand the Inata Mine to its optimal processing capacity and to advance our assets in Guinea. Our intention remains to grow Avocet into a leading West African gold mining and exploration company."
FOR FURTHER INFORMATION PLEASE CONTACT
Avocet Mining Pelham Bell J.P. Morgan Arctic SEB Enskilda
PLC Pottinger Cazenove Securities Financial
Financial Lead Broker Financial Adviser &
PR Consultants Adviser Market Maker
& Market
Maker
============== ================ ========================== ============ =================
David Cather, Daniel Thole Michael Wentworth-Stanley Arne Wenger Fredrik Cappelen
CEO Joanna Boon Neil Passmore Petter
Mike Norris, Bakken
FD
Angela Parr,
IR
============== ================ ========================== ============ =================
+44 20 7766 +44 20 7861 +44 20 7588 +47 2101
7676 3232 2828 3100 +47 2100 8500
NOTES TO EDITORS
Avocet Mining is a gold mining and exploration company listed on the London Stock Exchange (Ticker: AVM.L) and the Oslo Bors (Ticker: AVM.OL). The Company's principal activities are gold mining and exploration in West Africa.
In Burkina Faso the Company owns 90% of the Inata Gold Mine. The deposit at Inata currently comprises a Mineral Resource of 3.46 million ounces and a Mineral Reserve of 1.85 million ounces. The Inata Gold Mine poured its first gold in December 2009 and produced 167,000 ounces of gold in 2011 and is expected to produce 135,000 - 140,000 ounces of gold in 2012.
Other assets in Burkina Faso include eight exploration permits surrounding the Inata Gold Mine in the broader Belahouro region. The most advanced of these projects is at Souma, some 20 kilometres from the Inata Gold Mine, where a Mineral Resource of 0.56 million ounces exists.
In Guinea, Avocet owns twelve exploration licenses in the north east of the country. Mineral Resource development has been ongoing since 2005 and the project at Tri-K is the most advanced. Within the Tri-K project, Koulekoun has a Mineral Resource of 1.83 million ounces and Kodieran of 0.4 million ounces.
CHIEF EXECUTIVE OFFICER'S REVIEW
The second quarter of 2012 was a challenging period for the Company. As reported in our trading update of 29 June 2012, production and cash costs at the Inata Gold Mine were weaker than forecast and the scoping study on an expansion at Inata has taken longer than anticipated.
In response to this, the Company has taken a number of steps to refocus its strategy in order to achieve operational excellence at Inata.
Measures are being taken to improve mining capacity and operating efficiencies. African Mining Services has been contracted to provide two rental excavators and four dump trucks, while a new wheeled loader has been purchased and is in transit to the mine. All seven are expected at site in September. The purchase of a fourth mining fleet will be put on hold pending the implementation of recommendations from Alexander Proudfoot to enhance the efficiency of the existing fleet. During July, a team from Alexander Proudfoot management consultants conducted a three week business review, including a comprehensive analysis of operations. This review and the resulting recommendations will quantify performance improvement opportunities to enhance efficiencies and reduce costs. Management and Alexander Proudfoot will jointly compile a detailed plan to achieve these desired results over the coming months.
The on-site management team has been expanded with the appointment of a new general manager, mine manager and a technical services manager. The new general manager, John McNair, is an engineer with over 30 years relevant experience.
Metallurgical test work continues, with a view to determining an optimal plant configuration suitable for processing ore from across the Inata ore body. Test work results and consultants' reports are scheduled for internal review in August, following which engineering and mine planning will commence in order to finalise life of mine plans. Further information on the expansion will be communicated following completion of these studies.
In anticipation of Inata's existing project finance facility being fully repaid by March 2013, discussions are in progress with various lenders with a view to replacing the existing facility. This new financing facility will be used for standby and Inata development purposes. The amount of funding required for Inata development will depend on the outcome of the ongoing studies outlined above. Finalisation of financing for the Inata development is therefore not expected to be completed until the end of 2012. In the meantime, the Company has US$63m of net cash.
In the recent trading update, the annual production guidance was lowered to between 135,000 and 140,000 ounces at cash costs of US$1,000-1,050 per ounce for 2012. In response to this weaker performance the Board has taken the decision to pay no dividend in respect of the 2012 financial year. The Company will look to resume dividends for subsequent years subject to assessment of growth plans and operating performance.
The Company's exploration field season will end shortly in Guinea and Burkina Faso. Exploration in Burkina Faso has progressed ahead of schedule and drilling of Koulekoun and Kodieran in Guinea is complete. Resource modelling will take place during the wet season, followed by resource and reserve updates as appropriate. Year to date the Company has invested US$15.3 million and US$6.7 million in resource development in Burkina Faso and Guinea respectively. With no fieldwork over the next few months, exploration expenditure in Guinea and Burkina Faso is expected to be significantly less in the second half of the year.
Realised gold prices were approximately US$100/oz. lower than in Q1 2012, as the spot gold price moved from US$1,677 on 2 April to US$1,553 on 29 June 2012.
OPERATIONAL REVIEW
Gold production and cash costs
2012 2011
----------------
Q2 Q1 Q1 Q2 Q3 Q4 FY 2011
Ore mined (k tonnes) 610 578 618 634 580 662 2,494
Waste mined (k tonnes) 6,689 7,240 4,673 3,804 6,211 8,019 22,707
Total mined (k tonnes) 7,299 7,818 5,291 4,438 6,791 8,681 25,201
Ore processed (k tonnes) 651 608 645 586 585 655 2,471
Average head grade (g/t) 1.82 2.36 2.37 2.24 2.18 2.25 2.26
Process recovery rate 86% 87% 94% 93% 89% 90% 91%
------- ======= ======= ------- ------- ------- --------
Gold Produced (oz.) 32,917 38,296 47,963 39,423 33,256 46,102 166,744
Cash costs (US$/oz.)
Mining 402 332 136 200 255 288 217
Processing 332 283 205 238 301 247 244
Administration 145 122 110 158 183 123 139
Royalties 127 113 82 81 91 115 93
------- ======= ======= ------- ------- ------- --------
1,006 850 533 677 830 773 693
Gold production in Q2 2012 was 32,917, down 14% from Q1, predominantly due to lower head grades. Mining volumes were 7% lower than Q1, reflecting continued poor availability of excavators and loaders, which caused waste stripping to fall behind schedule. As a consequence, areas of higher grades in the pit were not accessed in the period and head grades consequently fell to 1.82 grammes per tonne.
Throughput in the plant increased to 651,000 tonnes in Q2 compared with 608,000 tonnes in the previous quarter, partly reflecting scheduled maintenance in the first quarter. Recoveries of 86% were in line with 87% achieved in Q1 2012. Recoveries continue to be impacted by the presence of preg-robbing carbon. Mining for the remainder of the year is scheduled to be primarily in oxide material, where the presence of preg-robbing carbon is limited. Accordingly, recoveries are expected to improve.
As part of the process to deal more effectively with the preg-robbing carbon in the Inata ore body, good progress has been made with the modelling of organic carbon, sulphides and other indicator elements across the ore body. These models will enable us to define more fully the metallurgical character of the oxide, transitional and fresh ores at Inata. This will allow mining and processing schedules to be optimised and will also form the basis of the detailed design of the proposed plant expansion once the scoping study is complete.
Cash costs rose from US$850 per ounce in Q1 2012 to US$1,006 in Q2, largely due to the decrease in gold production. Although mining volumes were lower following availability issues, the cost of maintenance on the mining fleet, combined with longer haul cycles, meant that mining costs increased on a per tonne basis from US$1.63 to US$1.81. Plant costs remained at approximately US$17 per tonne processed. Mine administration costs remained flat at just under US$5 million for the quarter.
Exploration
Exploration on the Belahouro permits has progressed ahead of plan. The entire 2012 geochemical auger sampling programme is complete and assays are awaited. Resource drilling has progressed ahead of schedule, and the completion of the programme at Inata will result in an updated Mineral Resource by the end of the third quarter. Drilling has also commenced ahead of schedule at Souma. Initially this is aimed at upgrading the Inferred Mineral Resource defined in 2010 in support of reserve estimation and life of mine planning in the fourth quarter.
In Guinea, there have been no further developments regarding changes to the mining code. With no fieldwork over the next few months, expenditure in Guinea will be minimal and the Company will provide updates on development as they arise.
FINANCIAL REVIEW
The Group is committed to publishing interim management information on a quarterly basis. Accordingly, this review focuses on the performance during Q2 2012 but also makes reference to the six month interim period to 30 June 2012. A commentary on the performance of Q1 2012 was reported in the announcement made on 3 May 2012.
Revenue of US$49.3 million in the quarter represented 34,218 ounces of gold sold at an average realised price of US$1,439 per ounce (including 8,250 ounces into forward contracts at US$950 per ounce), compared to 39,064 ounces at US$1,543 per ounce in Q1. Revenue in the six month period ended 30 June 2012 was US$109.5 million, compared to US$100.5 million from continuing operations in the comparative period.
EBITDA for the quarter totalled US$8.7 million, compared to US$28.1 million in the previous quarter. However, favourable working capital movements meant that cashflow from operating activities was US$20.7 million, compared to US$13.9 million in Q1 2012.
The balance of the Macquarie Bank Limited debt reduced to US$17.0 million by 30 June 2012, and with a cash balance of US$80.4m, net cash was US$63.4m, compared with US$77.5 million at 31 March 2012. The final dividend for 2011 of US$13.2 million was paid in June 2012.
OUTLOOK
During the remainder of 2012 the Company's primary focus will be on improving Inata's operational performance. Gold production for the next six months is forecast to be between 64,000 and 69,000 ounces, with the fourth quarter representing more than half of this total due to the expected sequencing of mined grades.
Mining rates will benefit from the additional rented equipment discussed above, while operational and cost efficiencies will be targeted in conjunction with mining consultants Alexander Proudfoot. Recoveries are expected to be above current levels for the remainder of 2012 and into 2013 as mill feed comprises a higher proportion of oxide material.
Once the metallurgical test work results are received and the scoping study on the Inata expansion is complete, the priority will be to establish the appropriate plant configuration for this expansion Discussions are ongoing with several banks as well as equipment suppliers to ensure that the necessary funding for this expansion will be in place.
Avocet staff are fully committed to addressing performance issues and making sustainable improvements. These efforts will be led by the new General Manager and new Mine Manager that have been appointed to align the skill set of the mine's management with the challenges that the operation currently faces.
Following Brett Richards' resignation on 18 July, I will now be leading the Company's drive to achieve operational excellence from the position of CEO. In this capacity, my focus will be on ensuring Avocet delivers on its guidance for the remainder of 2012 and 2013 and that the studies on an expansion at Inata are satisfactorily concluded.
DAVID CATHER
Chief Executive Officer
PRINCIPAL BUSINESS RISKS
There are a number of potential risks and uncertainties which could have a material impact on the Group's performance over the remaining six months of the financial year and could cause actual results to differ materially from expected and historical results. The Directors do not consider that the principal risks and uncertainties have changed materially since the publication of the Annual Report and Accounts for the year ended 31 December 2011. The principal risks faced by Avocet relate to operational risks at Inata (including the performance of the mining and plant operations, the metallurgy of the ore body, and the impact of preg-robbing on recoveries); political risks in Burkina Faso, Guinea and Mali; and risks related to the funding of Avocet's growth strategy in the context of uncertain markets. A detailed explanation of these risks can be found on pages 48 and 49 of Avocet's 2011 Annual Report and Accounts, which can be downloaded from Avocet's website www.avocetmining.com This commentary is provided in accordance with Rule 4.2.7 of the Disclosure and Transparency Rules.
DIRECTORS RESPONSIBILITY STATEMENT
We confirm that to the best of our knowledge:
-- The condensed set of financial statements has been prepared in accordance with IAS 34 'Interim Financial Reporting' as adopted by the EU;
-- The interim management report includes a fair review of the information required by:
i) DTR 4.2.7R of the Disclosure and Transparency Rules, being an indication of important events during the first six months of the financial year and their impact on the condensed set of financial statements; and a description of the principal risks and uncertainties for the remaining six months of the year; and
ii) DTR 4.2.8R of the Disclosure and Transparency Rules, being related party transactions that have taken place in the first six months of the current financial year and that have materially affected the financial position or performance of the entity during that period; and any changes in the related party transactions described in the last annual report that could do so.
By order of the Board
DAVID CATHER MIKE NORRIS Chief Executive Officer Finance Director
INDEPENDENT REVIEW REPORT TO THE MEMBERS OF AVOCET MINING PLC
Introduction
We have reviewed the condensed set of financial statements in the half-yearly financial report for the six months ended 30 June 2012 which comprises condensed consolidated income statement, condensed consolidated statement of comprehensive income, condensed consolidated statement of financial position, condensed consolidated statement of changes in equity, condensed consolidated cash flow statement and the related notes. We have read the other information contained in the half-yearly financial report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.
This report is made solely to the company's members, as a body, in accordance with International Standard on Review Engagements (UK and Ireland) 2410, 'Review of Interim Financial Information performed by the Independent Auditor of the Entity'. Our review work has been undertaken so that we might state to the company's members those matters we are required to state to them in a review report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company's members as a body, for our review work, for this report, or for the conclusion we have formed.
Directors' responsibilities
The half-yearly financial report is the responsibility of, and has been approved by, the directors. The directors are responsible for preparing the half-yearly financial report in accordance with the Disclosure and Transparency Rules of the United Kingdom's Financial Services Authority.
As disclosed in note 1, the annual financial statements of the group are prepared in accordance with IFRSs as adopted by the European Union. The condensed set of financial statements included in this half-yearly financial report has been prepared in accordance with International Accounting Standard 34, 'Interim Financial Reporting,' as adopted by the European Union.
Our responsibility
Our responsibility is to express to the Company a conclusion on the condensed set of financial statements in the half-yearly financial report based on our review.
Scope of review
We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410, 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity' issued by the Auditing Practices Board for use in the United Kingdom. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the half-yearly financial report for the six months ended 30 June 2012 is not prepared, in all material respects, in accordance with International Accounting Standard 34 as adopted by the European Union and the Disclosure and Transparency Rules of the United Kingdom's Financial Services Authority.
GRANT THORNTON UK LLP
AUDITOR
London
1 August 2012
CONDENSED CONSOLIDATED INCOME STATEMENT
For the three months ended 30 June 2012
Three months ended 30 June Three months ended 30
2012 June 2011
Unaudited Unaudited
Note Continuing Discontinued
operations operations Continuing Discontinued
(1) (1) Total operations operations Total
============================ ===== ============ ============= ========= ============ ============= =========
US$000 US$000 US$000 US$000 US$000 US$000
Revenue 3 49,255 - 49,255 44,749 35,215 79,964
Cost of sales 3 (42,734) - (42,734) (34,200) (25,732) (59,932)
============================ ===== ============ ============= ========= ============ ============= =========
Gross profit 6,521 - 6,521 10,549 9,483 20,032
============================ ===== ============ ============= ========= ============ ============= =========
Administrative expenses (3,166) - (3,166) (2,872) - (2,872)
Share based payments (471) - (471) (305) - (305)
============================ ===== ============ ============= ========= ============ ============= =========
Profit from operations 2,884 - 2,884 7,372 9,483 16,855
============================ ===== ============ ============= ========= ============ ============= =========
Profit on disposal
of investments 2 - - - 8,990 - 8,990
Profit on disposal
of subsidiaries 2 - - - - 72,807 72,807
Finance items
Exchange gains/(losses) 219 - 219 (144) - (144)
Finance expense (743) - (743) (1,356) - (1,356)
Finance income 98 98 - - -
Net finance items
- discontinued operations - - - - (179) (179)
Profit before taxation 2,458 - 2,458 14,862 82,111 96,973
============================ ===== ============ ============= ========= ============ ============= =========
Analysed as:
Profit before taxation
and exceptional items 2,458 - 2,458 5,872 9,304 15,176
Exceptional items 12 - - - 8,990 72,807 81,797
============================ ===== ============ ============= ========= ============ ============= =========
Profit before taxation 2,458 - 2,458 14,862 82,111 96,973
============================ ===== ============ ============= ========= ============ ============= =========
Taxation (589) - (589) (1,981) (1,393) (3,374)
Profit for the period 1,869 - 1,869 12,881 80,718 93,599
============================ ===== ============ ============= ========= ============ ============= =========
Attributable to:
Equity shareholders
of the parent company 1,611 - 1,611 12,614 79,703 92,317
Non-controlling interest 258 - 258 267 1,015 1,282
============================ ===== ============ ============= ========= ============ ============= =========
1,869 - 1,869 12,881 80,718 93,599
============================ ===== ============ ============= ========= ============ ============= =========
Earnings per share
- basic (cents per
share) 4 0.81 - 0.81 6.32 39.94 46.26
- diluted (cents per
share) 4 0.81 - 0.81 6.21 39.23 45.44
EBITDA(2) 8,679 - 8,679 16,600 9,483 26,083
============================ ===== ============ ============= ========= ============ ============= =========
(1) During 2011, the Group disposed of all of its trading subsidiaries which were classified as discontinued
operations. All operations for 2012 are continuing. Refer to note 2 for further information.
(2) EBITDA represents earnings before finance items, taxation, depreciation and amortisation. EBITDA is not defined by IFRS but is commonly used as an indication of underlying cash generation.
CONDENSED CONSOLIDATED INCOME STATEMENT
For the six months ended 30 June 2012
Six months ended 30 June Six months ended 30 June
2012 2011
Unaudited Unaudited
Note Discontinued
Continuing operations Continuing Discontinued
operations(1) (1) Total operations operations Total
=========================== ===== =============== ============= ========= ============ ============= ==========
US$000 US$000 US$000 US$000 US$000 US$000
Revenue 3 109,511 - 109,511 100,516 67,236 167,752
Cost of sales 3 (78,741) - (78,741) (73,488) (50,162) (123,650)
=========================== ===== =============== ============= ========= ============ ============= ==========
Gross profit 30,770 - 30,770 27,028 17,074 44,102
=========================== ===== =============== ============= ========= ============ ============= ==========
Administrative expenses (5,320) - (5,320) (4,806) - (4,806)
Share based payments (1,030) - (1,030) (666) - (666)
=========================== ===== =============== ============= ========= ============ ============= ==========
Profit from operations 24,420 - 24,420 21,556 17,074 38,630
=========================== ===== =============== ============= ========= ============ ============= ==========
Profit on disposal of
investments 7,12 - - - 8,990 - 8,990
(Loss)/profit on disposal
of subsidiaries 2 - (105) (105) - 72,807 72,807
Finance items
Exchange gains/(losses) 364 - 364 (82) - (82)
Finance expense (1,601) - (1,601) (3,032) - (3,032)
Finance income 114 - 114 - - -
Net finance items -
discontinued operations - - - - (19) (19)
Profit/(loss) before
taxation 23,297 (105) 23,192 27,432 89,862 117,294
=========================== ===== =============== ============= ========= ============ ============= ==========
Analysed as:
Profit before taxation
and exceptional items 23,297 - 23,297 18,442 17,055 35,497
Exceptional items 12 - (105) (105) 8,990 72,807 81,797
=========================== ===== =============== ============= ========= ============ ============= ==========
Profit/(loss) before
taxation 23,297 (105) 23,192 27,432 89,862 117,294
=========================== ===== =============== ============= ========= ============ ============= ==========
Taxation (7,473) - (7,473) (4,602) (2,723) (7,325)
Profit/(loss) for the
period 15,824 (105) 15,719 22,830 87,139 109,969
=========================== ===== =============== ============= ========= ============ ============= ==========
Attributable to:
Equity shareholders
of the parent company 14,208 (105) 14,103 21,475 84,930 106,405
Non-controlling interest 1,616 - 1,616 1,355 2,209 3,564
=========================== ===== =============== ============= ========= ============ ============= ==========
15,824 (105) 15,719 22,830 87,139 109,969
=========================== ===== =============== ============= ========= ============ ============= ==========
Earnings per share
- basic (cents per share) 4 7.14 (0.05) 7.09 10.80 42.70 53.50
- diluted (cents per
share) 4 7.07 (0.05) 7.02 10.59 41.88 52.47
EBITDA(2) 36,780 - 36,780 42,003 17,074 59,077
=========================== ===== =============== ============= ========= ============ ============= ==========
(1) During 2011, the Group disposed of all of its trading subsidiaries which were classified as discontinued operations. All operations for 2012 are continuing. In Q1 2012 the Group completed the disposal of one of the remaining exploration assets in South East Asia. Refer to note 2 for further information.
(2) EBITDA represents earnings before finance items, taxation, depreciation and amortisation. EBITDA is not defined by IFRS but is commonly used as an indication of underlying cash generation.
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the three months ended 30 June 2012
Three months ended 30 June Three months ended 30
2012 June 2011
Unaudited Unaudited
============================== ===== ==================================== =======================================
Continuing Discontinued Continuing Discontinued
Note operations operations Total operations operations Total
============================== ===== ============ ============= ======= ============ ============= ==========
US$000 US$000 US$000 US$000 US$000 US$000
Profit for the period 1,869 - 1,869 12,881 80,718 93,599
Revaluation of other
financial assets 7 (684) - (684) 204 - 204
Disposal of other
financial assets - - - (9,725) - (9,725)
Reclassification
of foreign exchange
translation reserve
on disposal of subsidiaries 2 - - - (627) - (627)
Total comprehensive
income for the period 1,185 - 1,185 2,733 80,718 83,451
Attributable to:
Equity holders of
the parent company 927 - 927 2,466 79,703 82,169
Non-controlling
interest 258 - 258 267 1,015 1,282
============================== ===== ============ ============= ======= ============ ============= ==========
1,185 - 1,185 2,733 80,718 83,451
============================== ===== ============ ============= ======= ============ ============= ==========
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the six months ended 30 June 2012
Six months ended 30 June Six months ended 30 June
2012 2011
Unaudited Unaudited
============================== ===== ==================================== =======================================
Continuing Discontinued Continuing Discontinued
Note operations operations Total operations operations Total
============================== ===== ============ ============= ======= ============ ============= ==========
US$000 US$000 US$000 US$000 US$000 US$000
Profit for the period 15,824 (105) 15,719 22,830 87,139 109,969
Revaluation of other
financial assets 7 (604) - (604) (2,903) - (2,903)
Disposal of other
financial assets - - - (9,725) - (9,725)
Reclassification
of foreign exchange
translation reserve
on disposal of subsidiaries 2 - - - (627) - (627)
============================== ===== ============ ============= ======= ============ ============= ==========
Total comprehensive
income for the period 15,220 (105) 15,115 9,575 87,139 96,714
Attributable to:
Equity holders of
the parent company 13,604 (105) 13,499 8,220 84,930 93,150
Non-controlling
interest 1,616 - 1,616 1,355 2,209 3,564
============================== ===== ============ ============= ======= ============ ============= ==========
15,220 (105) 15,115 9,575 87,139 96,714
============================== ===== ============ ============= ======= ============ ============= ==========
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
At 30 June 2012
30 June 2012 31 December 2011 30 June 2011
Note Unaudited Audited Unaudited
===================================== ===== ============= ================= =============
US$000 US$000 US$000
Non-current assets
Intangible assets 5 45,511 42,390 29,747
Property, plant and equipment 6 268,225 247,954 241,528
Other financial assets 7 1,224 1,828 -
Deferred tax assets - - 1,459
===================================== ===== ============= ================= =============
314,960 292,172 272,734
Current assets
Inventories 8 52,708 40,515 27,865
Trade and other receivables 29,202 28,529 25,998
Cash and cash equivalents 9 80,380 105,236 179,293
===================================== ===== ============= ================= =============
162,290 174,280 233,156
Assets of disposal group classified
as held for sale 2,3 - 2,085 6,474
Current liabilities
Trade and other payables 35,923 25,544 46,593
Other financial liabilities 10 18,265 24,711 24,000
===================================== ===== ============= ================= =============
54,188 50,255 70,593
Liabilities of disposal group
classified as held for sale 2,3 - - 1,244
Non-current liabilities
Other financial liabilities 10 2,241 8,018 17,000
Deferred tax liabilities 22,039 14,566 13,330
Other liabilities 5,143 5,143 3,737
===================================== ===== ============= ================= =============
29,423 27,727 34,067
Net assets 393,639 390,555 406,460
===================================== ===== ============= ================= =============
Equity
Issued share capital 16,247 16,247 16,247
Share premium 149,915 149,915 149,915
Other reserves 15,583 15,273 17,852
Retained earnings 209,287 208,129 220,157
Total equity attributable to
the parent 391,032 389,564 404,171
Non-controlling interest 2,607 991 2,289
===================================== ===== ============= ================= =============
Total equity 393,639 390,555 406,460
===================================== ===== ============= ================= =============
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Six months ended Total
30 June 2011 attributable
Share Share Other Retained to the Non-controlling Total
capital premium reserves earnings parent interest equity
================== ========= ======== ========= ========= ============= ================ =========
US$000 US$000 US$000 US$000 US$000 US$000 US$000
At 31 December
2010 (Audited) 16,086 144,571 30,632 118,606 309,895 9,344 319,239
Profit for the
period - - - 106,405 106,405 3,564 109,969
Revaluation
of other
financial
assets - - (2,903) - (2,903) - (2,903)
Disposal of
other financial
assets - - (9,725) - (9,725) - (9,725)
=================== ======== ======== ========= ========= ============= ================ =========
Reclassification
of foreign
exchange
translation
reserve on
disposal
of subsidiaries - - (627) - (627) - (627)
=================== ======== ======== ========= ========= ============= ================ =========
Total
comprehensive
income for the
period - - (13,255) 106,405 93,150 3,564 96,714
=================== ======== ======== ========= ========= ============= ================ =========
Share based
payments - - - 614 614 - 614
Issue of shares
- exercise of
share options 35 - - - 35 - 35
Issue of shares
- bonuses 75 3,177 - (3,200) 52 - 52
Issue of shares
into EBT 51 2,167 (2,218) - - - -
Non-controlling
interest share
of dividend
from subsidiary - - - - - (2,000) (2,000)
=================== ======== ======== ========= ========= ============= ================ =========
Disposal of
subsidiaries - - - - - (8,619) (8,619)
=================== ======== ======== ========= ========= ============= ================ =========
Release of EBT
shares - - 701 (276) 425 - 425
=================== ======== ======== ========= ========= ============= ================ =========
Transfer
acquisition
reserve - - 1,992 (1,992) - - -
=================== ======== ======== ========= ========= ============= ================ =========
At 30 June 2011
(Unaudited) 16,247 149,915 17,852 220,157 404,171 2,289 406,460
=================== ======== ======== ========= ========= ============= ================ =========
Six months ended Total
30 June 2012 attributable
Share Share Other Retained to the Non-controlling Total
capital premium reserves earnings parent interest equity
=================== ======== ======== ========= ========= ============= ================ =========
US$000 US$000 US$000 US$000 US$000 US$000 US$000
At 31 December
2011 (Audited) 16,247 149,915 15,273 208,129 389,564 991 390,555
Profit for the
period - - - 14,103 14,103 1,616 15,719
Revaluation
of other
financial
assets - - (604) - (604) - (604)
Total
comprehensive
income for the
period - - (604) 14,103 13,499 1,616 15,115
=================== ======== ======== ========= ========= ============= ================ =========
Share based
payments - - - 1,425 1,425 - 1,425
Release of
treasury
and own shares - - 914 (865) 49 - 49
Final dividend - - - (13,505) (13,505) - (13,505)
=================== ======== ======== ========= ========= ============= ================ =========
At 30 June 2012
(Unaudited) 16,247 149,915 15,583 209,287 391,032 2,607 393,639
=================== ======== ======== ========= ========= ============= ================ =========
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
Three months ended 30 June Three months ended 30
2012 June 2011
(Unaudited) (Unaudited)
Continuing Dis-continued Continuing Discontinued
Note operations operations Total operations operations Total
===================== ===== =========== ============== ============ ================ ============== =========
US$000 US$000 US$000 US$000 US$000 US$000
Cash flows from
operating
activities
Profit for the
period 1,869 - 1,869 12,881 80,718 93,599
Adjusted for:
Depreciation of
non-current
assets 3 5,795 - 5,795 9,228 - 9,228
Share based payments 471 - 471 305 - 305
Provisions - - - - 284 284
Taxation in the
income statement 589 - 589 1,981 1,393 3,374
Non-operating items
in the
income statement 11 1,036 - 1,036 (7,512) (72,809) (80,321)
===================== ===== =========== ============== ============ ================ ============== =========
9,760 - 9,760 16,883 9,586 26,469
Movements in working
capital
(Increase)/decrease
in inventory (2,324) - (2,324) (4,358) 397 (3,961)
Decrease/(increase)
in trade
and other
receivables 1,971 - 1,971 (6,085) (814) (6,899)
Increase/(decrease)
in trade
and other payables 11,556 - 11,556 (1,920) 695 (1,225)
===================== ===== =========== ============== ============ ================ ============== =========
Net cash generated
by operations 20,963 - 20,963 4,520 9,864 14,384
Interest received 72 - 72 - 10 10
Interest paid (318) - (318) (1,241) - (1,241)
Income tax paid - - - (865) (1,497) (2,362)
===================== ===== =========== ============== ============ ================ ============== =========
Net cash generated
by operating
activities 20,717 - 20,717 2,414 8,377 10,791
Cash flows from
investing
activities
Payments for
property, plant
and equipment 3 (7,067) - (7,067) (8,198) (290) (8,488)
Deferred
consideration paid - - - - (656) (656)
Exploration and
evaluation
expenses 3,5 (13,980) - (13,980) (9,220) (1,531) (10,751)
Rehabilitation costs - - - - (165) (165)
Disposal of
discontinued
operation, net of
cash disposed
of 2 - - - 158,151 - 158,151
Net cash received
from disposal
of other
investments 7 - - - 16,501 - 16,501
===================== ===== =========== ============== ============ ================ ============== =========
Net cash (used
in)/generated
by investing
activities (21,047) - (21,047) 157,234 (2,642) 154,592
===================== ===== =========== ============== ============ ================ ============== =========
Cash flows from
financing
activities
Proceeds from issue - - - - - -
of equity
shares
Net exercise of
share options
settled in cash (141) - (141) - - -
Loans repaid 10 (6,000) - (6,000) (31,000) - (31,000)
Final dividend (13,166) - (13,166) - - -
Payments in respect
of finance
leases (371) - (371) - - -
Non-controlling
interest
share of dividend
from subsidiary - - - - (2,000) (2,000)
===================== ===== =========== ============== ============ ================ ============== =========
Net cash used in
financing
activities (19,678) - (19,678) (31,000) (2,000) (33,000)
===================== ===== =========== ============== ============ ================ ============== =========
Net cash movement (20,008) - (20,008) 128,648 3,735 132,383
Exchange
(losses)/gains (120) - (120) 120 (189) (69)
Transfer of cash not
held
for sale 2,3 - - - 3,546 (3,546) -
Total
(decrease)/increase
in cash and cash
equivalents (20,128) - (20,128) 132,314 - 132,314
===================== ===== =========== ============== ============ ================ ============== =========
Cash and cash
equivalents
at start of the
period 100,508 - 100,508 46,979 - 46,979
===================== ===== =========== ============== ============ ================ ============== =========
Cash and cash
equivalents
at end of period 80,380 - 80,380 179,293 - 179,293
===================== ===== =========== ============== ============ ================ ============== =========
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
Six months ended 30 June Six months ended 30
2012 June 2011
(Unaudited) (Unaudited)
Continuing Discontinued Continuing Dis-continued
Note operations operations Total operations operations Total
===================== ===== =========== ================== ============ ============ ============== =========
US$000 US$000 US$000 US$000 US$000 US$000
Cash flows from
operating
activities
Profit/(loss) for
the period 15,824 (105) 15,719 22,830 87,139 109,969
Adjusted for:
Depreciation of
non-current
assets 6 12,360 - 12,360 20,447 - 20,447
Share based payments 1,030 - 1,030 666 - 666
Provisions - - - - 574 574
Taxation in the
income statement 7,473 - 7,473 4,602 2,723 7,325
Non-operating items
in the
income statement 11 1,950 105 2,055 (5,988) (72,981) (78,969)
===================== ===== =========== ================== ============ ============ ============== =========
38,637 - 38,637 42,557 17,455 60,012
Movements in working
capital
(Increase)/decrease
in inventory (12,194) - (12,194) (7,486) 341 (7,145)
Increase in trade
and other
receivables (341) - (341) (10,583) (1,274) (11,857)
Increase/(decrease)
in trade
and other payables 9,056 - 9,056 6,675 (248) 6,427
===================== ===== =========== ================== ============ ============ ============== =========
Net cash generated
by operations 35,158 - 35,158 31,163 16,274 47,437
Interest received 138 - 138 - 17 17
Interest paid (727) - (727) (1,944) - (1,944)
Income tax paid - - - (865) (3,679) (4,544)
===================== ===== =========== ================== ============ ============ ============== =========
Net cash generated
by operating
activities 34,569 - 34,569 28,354 12,612 40,966
Cash flows from
investing
activities
Payments for
property, plant
and equipment 6 (13,716) - (13,716) (21,996) (884) (22,880)
Deferred
consideration paid - - - - (1,330) (1,330)
Exploration and
evaluation
expenses 3,5 (22,036) - (22,036) (19,231) (2,995) (22,226)
Rehabilitation costs - - - - (393) (393)
Disposal of
discontinued
operation, net of
cash disposed
of 2 1,980 - 1,980 158,151 - 158,151
Net cash received
from disposal
of other
investments 7 - - - 16,501 - 16,501
===================== ===== =========== ================== ============ ============ ============== =========
Net cash (used
in)/generated
by investing
activities (33,772) - (33,772) 133,425 (5,602) 127,823
===================== ===== =========== ================== ============ ============ ============== =========
Cash flows from
financing
activities
Proceeds from issue
of equity
shares - - - 35 - 35
Net exercise of
share options
settled in cash (141) (141)
Loans repaid 10 (12,000) - (12,000) (37,000) - (37,000)
Final dividend (13,166) (13,166) - - -
Payments in respect
of finance
leases (371) - (371) - - -
Non-controlling
interest
share of dividend
from subsidiary - - - - (2,000) (2,000)
===================== ===== =========== ================== ============ ============ ============== =========
Net cash used in
financing
activities (25,678) - (25,678) (36,965) (2,000) (38,965)
===================== ===== =========== ================== ============ ============ ============== =========
Net cash movement (24,881) - (24,881) 124,814 5,010 129,824
Exchange
gains/(losses) 25 - 25 183 (237) (54)
Transfer of cash not
held
for sale 2,3 - - - 4,773 (4,773) -
Total
(decrease)/increase
in cash and cash
equivalents (24,856) - (24,856) 129,770 - 129,770
===================== ===== =========== ================== ============ ============ ============== =========
Cash and cash
equivalents
at start of the
period 105,236 - 105,236 49,523 - 49,523
===================== ===== =========== ================== ============ ============ ============== =========
Cash and cash
equivalents
at end of period 80,380 - 80,380 179,293 - 179,293
===================== ===== =========== ================== ============ ============ ============== =========
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
1. Basis of preparation
The condensed consolidated interim financial statements, which are unaudited, have been prepared in accordance with the requirements of International Accounting Standard 34 as adopted for use in the European Union. This condensed interim report does not include all the notes of the type normally included in an annual financial report. Accordingly, this condensed report is to be read in conjunction with the Annual Report for the year ended 31 December 2011, which has been prepared in accordance with IFRS as adopted by the European Union, and any public announcements made by the Group during the interim reporting period.
The financial information set out in this interim report does not constitute statutory accounts as defined in Section 435 of the Companies Act 2006. The unaudited condensed financial statements for the six months ended 30 June 2012 have been drawn up using accounting policies and presentation expected to be adopted in the Group's full financial statements for the year ending 31 December 2012, which are not expected to be significantly different to those set out in note 1 to the Group's audited financial statements for the year ended 31 December 2011.
The Company's statutory financial statements for the year ended 31 December 2011 are available on the Company's website www.avocetmining.com. The auditor's report on those financial statements was unqualified and did not contain a statement under sections 498(2) or (3) of the Companies Act 2006.
After review of the Group's operations, the directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. Accordingly, the directors continue to adopt the going concern basis in preparing the unaudited condensed interim financial statements.
2. Disposal group classified as held for sale and discontinued operations
On 24 June 2011, Avocet completed the sale of its main South East Asian assets, namely its 100% interest in the Penjom gold mine in Malaysia and its 80% interest in PT Avocet Bolaang Mongondow (PT ABM), which owns the North Lanut mine and Bakan project in North Sulawesi, Indonesia, for proceeds of US$170 million. In the third quarter of 2011, Avocet announced that further sales had been concluded, namely PT Avocet Mining Services, Avocet Mining (Malaysia) OHQ Sdn. Bhd., its 75% interest in PT Gorontalo Sejahtera Mining, and its 60% interest in PT Arafura Surya Alam. The combined gross proceeds for the disposals completed in the third quarter of 2011 were US$27 million. All of the sales completed in 2011 were originally announced on 24 December 2010.
In accordance with IFRS 5, Non-current Assets Held for Sale and Discontinued Operations, all of the assets and liabilities of the Indonesian and Malaysian operations, apart from cash, were treated as a disposal group from the date of the announcement of the sale on 24 December 2010, and were disclosed separately in the statement of financial position at 31 December 2010 and 31 March 2011, and the remaining unsold entities at 30 June 2011, 30 September 2011, and 31 December 2011. As the transaction was on a cash free debt free basis, the cash held by entities held for sale was classified as continuing operations rather than discontinued operations. Prior to the reclassification, management reviewed the carrying values and recognition of assets and liabilities respectively, and no adjustments were required to measure assets and liabilities at the lower of carrying value or fair value less costs to sell. Since 24 December 2010, the date on which the criteria for being held for sale were met, no depreciation was charged in the Group financial statements for the Malaysian and Indonesian assets, in accordance with IFRS.
In 2011, Avocet completed the sale of PT Arafura Mandiri Semangat (PT Arafura) and PT Aura Celebes Mandiri (PT ACM) to Reliance Resources Limited, a company owned by Golden Peaks Resources Limited (Golden Peaks). Consideration was in the form of 7.9 million Golden Peaks shares, which are classed as available for sale financial assets and are recognised at fair value at the reporting date (note 7). Golden Peaks is listed on the Toronto Stock Exchange. The PT AMS and PT ACM held non-core exploration projects in Indonesia.
The results of the disposal group are presented separately in the comparative consolidated income statement and the segmental analysis, as required by IFRS.
The profit on disposal of the entities sold during 2011 is presented in full in the annual report for the year ended 31 December 2011.
Completion of one of the last two exploration assets occurred on 16 February 2012 for proceeds of US$2.0 million, resulting in a loss of US$0.1 million. There are no remaining assets or liabilities recognised in the Group statement of financial position in respect of the last remaining South East Asian exploration company.
3. Segmental reporting
IFRS 8 requires the disclosure of certain information in respect of reportable operating segments. One of the criteria for determining reportable operating segments is the level at which information is regularly reviewed by the Chief Operating Decision Maker (CODM) for the purposes of making economic decisions. In the prior period, this segmental information was presented for the UK and West Africa as continuing operations, and Malaysia and Indonesia as discontinued operations. The disposal of Avocet's assets in South East Asia enabled the strategic refocus of the Group, with the Inata operating mine and exploration projects in West Africa being the core focus. To reflect the change in focus of the Group, management has reassessed the segments which should be reported under IFRS 8. In this report, operating segments for continuing operations are determined as the UK, West Africa mining operations (which includes exploration activity within the Inata mine licence area), and West Africa exploration which includes exploration projects in Burkina Faso, Guinea and Mali. Exploration projects are aggregated into the single reportable segment because the projects are managed by a single operating division and reported to the CODM on this basis. Discontinued operations represent the disposal of one of the remaining assets in South East Asia that was subject to the agreement with J&Partners L.P. (note 2). Comparative periods have been represented on this basis to allow for a consistent comparison.
3. Segmental Reporting
West Africa Continuing
For the three months ended mining West Africa operations Dis-continued
30 June 2012 UK operations exploration total operations Total
====================================== ======== ============ ============= ============ ============== =========
US$000 US$000 US$000 US$000 US$000 US$000
INCOME STATEMENT
Revenue - 49,255 - 49,255 - 49,255
====================================== ======== ============ ============= ============ ============== =========
Cost of Sales 1,031 (41,878) (1,887) (42,734) - (42,734)
====================================== ======== ============ ============= ============ ============== =========
Cash production costs:
- mining - (13,225) - (13,225) - (13,225)
- processing - (10,914) - (10,914) - (10,914)
- overheads - (4,789) - (4,789) - (4,789)
- royalties - (4,182) - (4,182) - (4,182)
====================================== ======== ============ ============= ============ ============== =========
- (33,110) - (33,110) - (33,110)
Changes in inventory - (97) - (97) - (97)
Expensed exploration
and other cost of sales (a) 1,064 (2,909) (1,887) (3,732) - (3,732)
Depreciation and amortisation (b) (33) (5,762) - (5,795) - (5,795)
=============================== ===== ======== ============ ============= ============ ============== =========
Gross profit/(loss) 1,031 7,377 (1,887) 6,521 - 6,521
Administrative expenses
and share based payments (3,637) - - (3,637) - (3,637)
====================================== ======== ============ ============= ============ ============== =========
(Loss)/profit from
operations (2,606) 7,377 (1,887) 2,884 - 2,884
Net finance items 426 (843) (9) (426) - (426)
====================================== ======== ============ ============= ============ ============== =========
(Loss)/profit before
taxation (2,180) 6,534 (1,896) 2,458 - 2,458
Taxation - (589) - (589) - (589)
====================================== ======== ============ ============= ============ ============== =========
(Loss)/profit for the
period (2,180) 5,945 (1,896) 1,869 - 1,869
====================================== ======== ============ ============= ============ ============== =========
Attributable to:
Equity shareholders
of parent company (2,180) 5,687 (1,896) 1,611 - 1,611
====================================== ======== ============ ============= ============ ============== =========
Non-controlling interest - 258 - 258 - 258
(Loss)/profit for the
period (2,180) 5,945 (1,896) 1,869 - 1,869
====================================== ======== ============ ============= ============ ============== =========
EBITDA (c) (2,573) 13,139 (1,887) 8,679 - 8,679
=============================== ===== ======== ============ ============= ============ ============== =========
(a) Other cost of sales represents costs not directly attributable to production, including exploration expenditure expensed;
(b) Includes amounts in respect of the amortisation of mine closure provision at Inata;
(c) EBITDA represents earnings before exceptional items, finance items, tax, depreciation and amortisation. EBITDA is not defined by IFRS but is commonly used as an indication of underlying cash generation.
3. Segmental Reporting (continued)
West Africa Continuing
mining West Africa operations Discontinued
At 30 June 2012 UK operations exploration total operations Total
============================== ===== ========= ============ ============= ============ ============= =========
US$000 US$000 US$000 US$000 US$000 US$000
STATEMENT OF FINANCIAL
POSITION
Non-current assets 1,816 267,862 45,282 314,960 - 314,960
Inventories - 52,352 356 52,708 - 52,708
Trade and other
receivables 531 24,089 4,582 29,202 - 29,202
Cash and cash equivalents 43,019 36,584 777 80,380 - 80,380
Total assets 45,366 380,887 50,997 477,250 - 477,250
===================================== ========= ============ ============= ============ ============= =========
Current liabilities (3,529) (43,958) (6,701) (54,188) - (54,188)
Non-current liabilities (430) (28,993) - (29,423) - (29,423)
===================================== ========= ============ ============= ============ ============= =========
Total liabilities (3,959) (72,951) (6,701) (83,611) - (83,611)
===================================== ========= ============ ============= ============ ============= =========
Net assets 41,407 307,936 44,296 393,639 - 393,639
===================================== ========= ============ ============= ============ ============= =========
West Africa Continuing
For the three months mining West Africa operations Discontinued
ended 30 June 2012 UK operations exploration total operations Total
============================== ===== ========= ============ ============= ============ ============= =========
US$000 US$000 US$000 US$000 US$000 US$000
CASH FLOW STATEMENT
(Loss)/profit for
the period (2,180) 5,945 (1,896) 1,869 - 1,869
Adjustments for
non-cash and non-operating
items (d) 78 7,583 230 7,891 - 7,891
Movements in working
capital 484 8,965 1,754 11,203 - 11,203
===================================== ========= ============ ============= ============ ============= =========
Net cash (used
in)/generated by
operations (1,618) 22,493 88 20,963 - 20,963
Net interest received/(paid) 72 (318) - (246) - (246)
Purchase of property,
plant and equipment (47) (6,892) (128) (7,067) - (7,067)
Loans repaid - (6,000) - (6,000) - (6,000)
Deferred exploration
expenditure - (104) (13,876) (13,980) - (13,980)
Final dividend (13,166) - - (13,166) - (13,166)
Other cash movements (e) (7,008) (6,995) 13,371 (632) - (632)
Total (decrease)/
increase in cash
and
cash equivalents (21,767) 2,184 (545) (20,128) - (20,128)
===================================== ========= ============ ============= ============ ============= =========
(d) Includes depreciation and amortisation, share based payments, taxation in the income statement, and other non-operating items in the income statement;
(e) Other cash movements include cash flows from financing activities, intergroup transfers; and exchange gains or losses.
3. Segmental Reporting (continued)
West Africa Continuing
For the three months ended mining West Africa operations Discontinued
30 June 2011 UK operations exploration total operations Total
====================================== ======== ============ ============= ============ ============= =========
US$000 US$000 US$000 US$000 US$000 US$000
INCOME STATEMENT
Revenue - 44,749 - 44,749 35,215 79,964
====================================== ======== ============ ============= ============ ============= =========
Cost of Sales 167 (34,478) 111 (34,200) (25,732) (59,932)
====================================== ======== ============ ============= ============ ============= =========
Cash production costs:
- mining - (7,891) - (7,891) (13,723) (21,614)
- processing - (9,381) - (9,381) (6,007) (15,388)
- overheads - (6,221) - (6,221) (2,611) (8,832)
- royalties - (3,211) - (3,211) (1,369) (4,580)
====================================== ======== ============ ============= ============ ============= =========
- (26,704) - (26,704) (23,710) (50,414)
Changes in inventory - 3,004 - 3,004 (145) 2,859
Expensed exploration
and other cost of sales (a) 201 (1,584) 111 (1,272) (1,877) (3,149)
Depreciation and amortisation (b) (34) (9,194) - (9,228) - (9,228)
=============================== ===== ======== ============ ============= ============ ============= =========
Gross profit 167 10,271 111 10,549 9,483 20,032
Administrative expenses
and share based payments (3,177) - - (3,177) - (3,177)
====================================== ======== ============ ============= ============ ============= =========
(Loss)/profit from
operations (3,010) 10,271 111 7,372 9,483 16,855
Profit on disposal
of subsidiaries and
investments - - 8,990 8,990 72,807 81,797
-------------------------------------- -------- ------------ ------------- ------------ ------------- ---------
Net finance items (301) (1,022) (177) (1,500) (179) (1,679)
====================================== ======== ============ ============= ============ ============= =========
(Loss)/profit before
taxation (3,311) 9,249 8,924 14,862 82,111 96,973
Taxation (865) (1,116) - (1,981) (1,393) (3,374)
====================================== ======== ============ ============= ============ ============= =========
(Loss)/profit for the
period (4,176) 8,133 8,924 12,881 80,718 93,599
====================================== ======== ============ ============= ============ ============= =========
Attributable to:
Equity shareholders
of parent company (4,176) 7,866 8,924 12,614 79,703 92,317
-------------------------------------- -------- ------------ ------------- ------------ ------------- ---------
Non-controlling interest - 267 - 267 1,015 1,282
(Loss)/profit for the
period (4,176) 8,133 8,924 12,881 80,718 93,599
====================================== ======== ============ ============= ============ ============= =========
EBITDA (c) (2,976) 19,465 111 16,600 9,483 26,083
=============================== ===== ======== ============ ============= ============ ============= =========
(a) Other cost of sales represents costs not directly attributable to production, including exploration expenditure expensed;
(b) Includes amounts in respect of the amortisation of mine closure provision at Inata;
(c) EBITDA represents earnings before exceptional items, finance items, tax, depreciation and amortisation. EBITDA is not defined by IFRS but is commonly used as an indication of underlying cash generation.
3. Segmental Reporting (continued)
West Africa Continuing
mining West Africa operations Discontinued
At 30 June 2011 UK operations exploration total operations Total
============================== ==== ========= ============ ============= ============ ============= =========
US$000 US$000 US$000 US$000 US$000 US$000
STATEMENT OF FINANCIAL
POSITION
Non-current assets 1,646 253,887 17,201 272,734 2,761 275,495
Inventories - 27,865 - 27,865 - 27,865
Trade and other
receivables 1,770 22,077 2,151 25,998 3,713 29,711
Cash and cash
equivalents 159,021 19,640 632 179,293 - 179,293
Total assets 162,437 323,469 19,984 505,890 6,474 512,364
==================================== ========= ============
Current liabilities (13,417) (55,157) (2,019) (70,593) (1,244) (71,837)
Non-current liabilities (430) (33,637) - (34,067) - (34,067)
Total liabilities (13,847) (88,794) (2,019) (104,660) (1,244) (105,904)
Net assets 148,590 234,675 17,965 401,230 5,230 406,460
For the three West Africa Continuing
months ended 30 mining West Africa operations Discontinued
June 2011 UK operations exploration total operations Total
US$000 US$000 US$000 US$000 US$000 US$000
CASH FLOW STATEMENT
(Loss)/profit
for the period (4,176) 8,133 8,924 12,881 80,718 93,599
Adjustments for
non-cash and non-operating
items (d) 1,504 17,033 (14,535) 4,002 (71,132) (67,130)
Movements in working
capital 1,404 (12,970) (797) (12,363) 278 (12,085)
Net cash (used
in)/generated
by operations (1,268) 12,196 (6,408) 4,520 9,864 14,384
Net interest (paid)/received (610) (631) - (1,241) 10 (1,231)
Net tax paid (865) - - (865) (1,497) (2,362)
Purchase of property,
plant and equipment (4) (8,194) - (8,198) (290) (8,488)
Loans repaid (25,000) (6,000) - (31,000) - (31,000)
Deferred exploration
expenditure - (4,074) (5,146) (9,220) (1,531) (10,751)
Other cash movements (e) 158,915 - 15,857 174,772 (3,010) 171,762
Reclassification
of cash not held
for sale (f) 3,546 - - 3,546 (3,546) -
Total increase/
(decrease) in
cash and cash
equivalents 134,714 (6,703) 4,303 132,314 - 132,314
(d) Includes depreciation and amortisation, share based payments, movement in provisions, taxation in the income statement, and other non-operating items in the income statement;
(e) Other cash movements include cash flows in respect of the sale of subsidiaries, deferred consideration paid, cash flows from financing activities, and exchange gains or losses;
(f) The sale of subsidiaries in South East Asia is for a debt-free cash-free consideration. Therefore, cash held in remaining Malaysian and Indonesian subsidiaries at 30 June has been excluded from held for sales assets, and reported as Group cash in the consolidated statement of financial position.
3. Segmental Reporting (continued)
West Africa Continuing
For the six months ended mining West Africa operations Dis-continued
30 June 2012 UK operations exploration total operations Total
====================================== ======== ============ ============ =========
US$000 US$000 US$000 US$000 US$000 US$000
INCOME STATEMENT
Revenue - 109,511 - 109,511 - 109,511
====================================== ======== ============ ============ ============ =========
Cost of Sales 1,858 (77,515) (3,084) (78,741) - (78,741)
====================================== ======== ============ ============ ============ =========
Cash production costs:
- mining - (25,932) - (25,932) - (25,932)
- processing - (21,741) - (21,741) - (21,741)
- overheads - (9,474) - (9,474) - (9,474)
- royalties - (8,521) - (8,521) - (8,521)
====================================== ======== ============ ============ ============ =========
- (65,668) - (65,668) - (65,668)
Changes in inventory - 5,066 - 5,066 - 5,066
Expensed exploration
and other cost of sales (a) 1,924 (4,619) (3,084) (5,779) - (5,779)
Depreciation and amortisation (b) (66) (12,294) - (12,360) - (12,360)
=============================== ===== ======== ============ ============ ============ =========
Gross profit/(loss) 1,858 31,996 (3,084) 30,770 - 30,770
Administrative expenses
and share based payments (6,350) - - (6,350) - (6,350)
(Loss)/profit from
operations (4,492) 31,996 (3,084) 24,420 - 24,420
Loss on disposal of
subsidiaries - - - - (105) (105)
Net finance items 429 (1,567) 15 (1,123) - (1,123)
====================================== ======== ============ ============ ============ =========
(Loss)/profit before
taxation (4,063) 30,429 (3,069) 23,297 (105) 23,192
Taxation - (7,473) - (7,473) - (7,473)
====================================== ======== ============ ============ =========
(Loss)/profit for the
period (4,063) 22,956 (3,069) 15,824 (105) 15,719
====================================== ======== ============ ============ =========
Attributable to:
Equity shareholders
of parent company (4,063) 21,340 (3,069) 14,208 (105) 14,103
Non-controlling interest - 1,616 - 1,616 - 1,616
====================================== ======== ============ ============ ============ =========
(Loss)/profit for the
period (4,063) 22,956 (3,069) 15,824 (105) 15,719
====================================== ======== ============ ============ ============ =========
EBITDA (c) (4,426) 44,290 (3,084) 36,780 - 36,780
=============================== ===== ======== ============ ============ ============ =========
(a) Other cost of sales represents costs not directly attributable to production, including exploration expenditure expensed;
(b) Includes amounts in respect of the amortisation of mine closure provisions at Inata;
(c) EBITDA represents earnings before exceptional items, finance items, tax, depreciation and amortisation. EBITDA is not defined by IFRS but is commonly used as an indication of underlying cash generation.
3. Segmental Reporting (continued)
West Africa Continuing
For the six months ended mining West Africa operations Discontinued
30 June 2011 UK operations exploration total operations Total
====================================== ======== ============ ==========
US$000 US$000 US$000 US$000 US$000 US$000
INCOME STATEMENT
Revenue - 100,516 - 100,516 67,236 167,752
====================================== ======== ============ ============ ============ ==========
Cost of Sales 425 (73,586) (327) (73,488) (50,162) (123,650)
====================================== ======== ============ ============ ============ ==========
Cash production costs:
- mining - (14,398) - (14,398) (27,336) (41,734)
- processing - (19,229) - (19,229) (12,046) (31,275)
- overheads - (11,495) - (11,495) (4,842) (16,337)
- royalties - (7,158) - (7,158) (2,552) (9,710)
====================================== ======== ============ ============ ============ ==========
- (52,280) - (52,280) (46,776) (99,056)
Changes in inventory - 2,024 - 2,024 (44) 1,980
Expensed exploration
and other cost of sales (a) 493 (2,951) (327) (2,785) (3,342) (6,127)
Depreciation and amortisation (b) (68) (20,379) - (20,447) - (20,447)
=============================== ===== ======== ============ ============ ============ ==========
Gross profit/(loss) 425 26,930 (327) 27,028 17,074 44,102
Administrative expenses
and share based payments (5,472) - - (5,472) - (5,472)
====================================== ======== ============ ==========
(Loss)/profit from
operations (5,047) 26,930 (327) 21,556 17,074 38,630
Profit on sale of subsidiaries
and investments - - 8,990 8,990 72,807 81,797
Net finance items (692) (2,245) (177) (3,114) (19) (3,133)
====================================== ======== ============ ============ ============ ==========
(Loss)/profit before
taxation (5,739) 24,685 8,486 27,432 89,862 117,294
Taxation (865) (3,737) - (4,602) (2,723) (7,325)
====================================== ======== ============ ==========
(Loss)/profit for the
period (6,604) 20,948 8,486 22,830 87,139 109,969
====================================== ======== ============ ==========
Attributable to:
Equity shareholders
of parent company (6,604) 19,593 8,486 21,475 84,930 106,405
------------ ----------
Non-controlling interest - 1,355 - 1,355 2,209 3,564
(Loss)/profit for the
period (6,604) 20,948 8,486 22,830 87,139 109,969
====================================== ======== ============ ============ ============ ==========
EBITDA (c) (4,979) 47,309 (327) 42,003 17,074 59,077
=============================== ===== ======== ============ ============ ============ ==========
(a) Other cost of sales represents costs not directly attributable to production, including exploration expenditure expensed;
(b) Includes amounts in respect of the amortisation of mine closure provision at Inata;
(c) EBITDA represents earnings before exceptional items, finance items, tax, depreciation and amortisation. EBITDA is not defined by IFRS but is commonly used as an indication of underlying cash generation.
3. Segmental Reporting (continued)
West Africa
For the six months mining West Africa Continuing Dis-continued
ended 30 June 2012 UK operations exploration operations total operations Total
US$000 US$000 US$000 US$000 US$000 US$000
CASH FLOW STATEMENT
(Loss)/profit for the
period (4,063) 22,956 (3,069) 15,824 (105) 15,719
Adjustments for
non-cash and
non-operating items (d) 667 22,192 (46) 22,813 105 22,918
Movements in working
capital (4,095) (2,188) 2,804 (3,479) - (3,479)
Net cash (used in)/
generated by operations (7,491) 42,960 (311) 35,158 - 35,158
Net interest
received/(paid) 138 (727) - (589) - (589)
Purchase of property,
plant and equipment (164) (11,773) (1,779) (13,716) - (13,716)
Deferred exploration
expenditure - (367) (21,669) (22,036) - (22,036)
Net proceeds from disposal
of discontinuing
operations 1,980 - - 1,980 - 1,980
Loans repaid - (12,000) - (12,000) - (12,000)
Final dividend (13,166) - - (13,166) - (13,166)
Other cash movements (e) (14,032) (10,224) 23,769 (487) - (487)
Total (decrease)/increase
in cash and cash
equivalents (32,735) 7,869 10 (24,856) - (24,856)
West Africa
For the six months mining West Africa Continuing Dis-continued
ended 30 June 2011 UK operations exploration operations total operations Total
US$000 US$000 US$000 US$000 US$000 US$000
CASH FLOW STATEMENT
(Loss)/profit for the
period (6,604) 20,948 8,486 22,830 87,139 109,969
Adjustments for
non-cash and
non-operating items (d) 237 33,918 (14,428) 19,727 (69,684) (49,957)
Movements in working
capital (2,914) (8,299) (181) (11,394) (1,181) (12,575)
Net cash (used in)/
generated by operations (9,281) 46,567 (6,123) 31,163 16,274 47,437
Net interest
(paid)/received (610) (1,334) - (1,944) 17 (1,927)
Net tax paid (865) - - (865) (3,679) (4,544)
Purchase of property,
plant and equipment (9) (21,987) - (21,996) (884) (22,880)
Loans repaid (25,000) (12,000) - (37,000) - (37,000)
Deferred exploration
expenditure - (10,705) (8,526) (19,231) (2,995) (22,226)
Other cash movements (e) 159,470 (1,198) 16,598 174,870 (3,960) 170,910
Reclassification of
cash not held for
sale (f) 4,773 - - 4,773 (4,773) -
Total increase/(decrease)
in cash and cash
equivalents 128,478 (657) 1,949 129,770 - 129,770
(d) Includes depreciation and amortisation, share based payments, movement in provisions, taxation in the income statement, and other non-operating items in the income statement;
(e) Other cash movements include deferred consideration paid, cash flows from financing activities, and exchange gains or losses;
(f) The sale of subsidiaries in South East Asia is for a debt-free cash-free consideration. Therefore, cash held in remaining Malaysian and Indonesian subsidiaries at 30 June 2011 has been excluded from held for sales assets, and reported as Group cash in the consolidated statement of financial position.
4. Earnings per Share
Earnings per share are analysed in the table below, presenting earnings per share for continuing and discontinued operations.
30 June 2012 30 June 30 June 30 June
(three months) 2011 (three 2012 (six 2011 (six
Unaudited months) months) months)
Unaudited Unaudited Unaudited
============= ============ ============
Shares Shares Shares Shares
Weighted average number of shares
in issue for the period
- number of shares with voting
rights 198,968,407 199,546,710 198,965,402 198,891,154
- effect of share options in
issue 974,247 3,604,795 1,952,498 3,879,369
============= ============ ============
- total used in calculation of
diluted earnings per share 199,942,654 203,151,505 200,917,900 202,770,523
============= ============ ============
US$000 US$000 US$000 US$000
Earnings per share from continuing
operations
Profit for the period from continuing
operations 1,869 12,881 15,824 22,830
Less non-controlling interest (258) (267) (1,616) (1,355)
============= ============ ============
Profit for the period attributable
to equity shareholders of the
parent 1,611 12,614 14,208 21,475
============= ============
Earnings per share
- basic (cents per share) 0.81 6.32 7.14 10.80
- diluted (cents per share) 0.81 6.21 7.07 10.59
============= ============ ============
Earnings per share from discontinued
operations
Profit for the period - 80,718 (105) 87,139
Less non-controlling interest - (1,015) - (2,209)
======== ======= ========
Profit for the period attributable
to equity shareholders of the
parent - 79,703 (105) 84,930
======== ========
Earnings per share
- basic (cents per share) - 39.94 (0.05) 42.70
- diluted (cents per share) - 39.23 (0.05) 41.88
======== ======= ========
Total earnings per share
- basic (cents per share) 0.81 46.26 7.09 53.50
- diluted (cents per share) 0.81 45.44 7.02 52.47
===== ======
5. Intangible assets
Intangible assets represent deferred exploration expenditure. The movement in the period is analysed below:
30 June
2012
(6 months)
US$000
At 1 January 42,390
Additions 22,513
Capitalised depreciation(2) 269
Transferred to property,
plant and equipment
(1) (19,661)
At 30 June 45,511
30 June 31 December
2012 2011
US$000 US$000
Burkina Faso 24,906 28,525
Guinea 20,412 13,655
Mali 193 210
========
Total 45,511 42,390
==============
6. Property, plant and equipment
Mining property Exploration
and plant property
and plant Office equipment
Six months ended
30 June 2012 West Africa West Africa UK Total
US$000 US$000 US$000 US$000
Cost
At 1 January 2012 316,028 2,812 952 319,792
Additions 11,773 1,302 164 13,239
Transfer from intangible
exploration assets(1) 18,725 936 - 19,661
At 30 June 2012 346,526 5,050 1,116 352,692
========
Depreciation
At 1 January 2012 71,380 - 458 71,838
Charge for the period 12,294 - 66 12,360
Capitalised depreciation(2) - 269 - 269
========
At 30 June 2012 83,674 269 524 84,467
========
Net Book Value
At 30 June 2012 262,852 4,781 592 268,225
========
At 1 January 2012 244,648 2,812 494 247,954
========
(1) Transfers from exploration costs of US$18.7 million represent the cost of increasing the Inata reserve from the level acquired in 2009 when Avocet acquired Wega Mining. These ounces now form part of the life of mine plan and the cost will be depreciated in accordance with the Group accounting policy. In addition to this, US$0.9 million of property, plant and equipment, that is used in the Group's exploration division has been transferred from intangible to tangible assets.
(2) Capitalised depreciation represents the depreciation of items of property, plant, and equipment which are used exclusively in the Group's exploration activities. The consumption of these assets is capitalised as an intangible asset, in accordance with accounting standards and industry practice.
7. Other financial assets
30 June 2012 30 June 2011 30 June 2012 30 June 2011
(3 months) (3 months) (6 months) (6 months)
Unaudited Unaudited Unaudited Unaudited
US$000 US$000 US$000 US$000
At 1 January/1 April 1,908 17,186 1,828 20,293
Disposals - (17,390) - (17,390)
Fair value adjustment (684) 204 (604) (2,903)
At 30 June 1,224 - 1,224 -
Other financial assets represent available for sale financial assets which are measured at fair value. The fair value adjustment is the periodic re-measurement to fair value, with gains or losses on re-measurement recognised in equity.
Other financial assets relate to shares in Golden Peaks Resources Limited, a company listed on the Toronto Stock Exchange. The shares were acquired as consideration for the disposal of two of the Group's assets in South East Asia in 2011 (note 2).
In 2011 Avocet disposed its entire holding of shares in Avion Gold Corp (Avion) for cash consideration of US$16.5 million. The Avion shares were acquired as consideration for the disposal of the Hounde group of licences in 2010. On the disposal of the shares, accumulated gains previously recognised in equity were transferred to the income statement and recognised in the profit on disposal of US$8.9 million.
8. Inventories
31 December 30 June
30 June 2012 2011 2011
Unaudited Audited Unaudited
US$000 US$000 US$000
Spare parts and consumables 34,740 27,612 17,037
Work in progress 15,689 12,707 8,788
Finished goods 2,279 196 2,040
52,708 40,515 27,865
9. Cash and cash equivalents
Included in US$80.4 million cash and cash equivalents at 30 June 2012 is US$15.3 million of restricted cash (31 December 2011: US$14.6 million), representing a minimum account balance held in Macquarie Bank Limited, a condition of the Inata project finance facility, and US$1.3 million (31 December 2011: US$0.6 million) relating to amounts held on restricted deposit in Burkina Faso for the purposes of environmental rehabilitation work, as required by the terms of the Inata mining licence.
10. Other financial liabilities
Other financial liabilities include the remaining balance under the Inata project finance facility of US$17 million. The facility is due for repayment at US$6 million per quarter, with the final remaining balance of US$5 million due on 31 March 2013. Also included within other financial liabilities are liabilities in respect of assets held under finance lease, US$1.3 million of which is included within current financial liabilities, and US$2.2 million is included within non-current financial liabilities.
11. Non-operating items in the income statement
In arriving at net cash flow from operating activities, the following non-operating items in the income statement have been adjusted for:
30 June 2012 30 June 30 June 30 June
2011 2012 2011
(three months) (three months) (six months) (six months)
Unaudited Unaudited Unaudited Unaudited
US$000 US$000 US$000 US$000
Exchange losses/(gains) - continuing
operations 391 124 463 (28)
Exchange gains - discontinued
operations - (183) - (195)
Finance expense - continuing
operations 743 1,356 1,601 3,032
Finance income - continuing
operations (98) - (114) -
Net finance items - discontinued
operations - 179 - 19
Profit on disposal of other
financial assets - (8,990) - (8,990)
(Profit)/loss on disposal of
subsidiaries - (72,807) 105 (72,807)
Non-operating items in the
income statement 1,036 (80,321) 2,055 (78,969)
12. Exceptional items
30 June 2012 30 June 2011 30 June 30 June
2012 2011
(3 months) (3 months) (6 months) (6 months)
Unaudited Unaudited Unaudited Unaudited
============= =============
US$000 US$000 US$000 US$000
Profit /(loss) on disposal
of subsidiaries - 72,807 (105) 72,807
Profit on disposal of other
financial assets - 8,990 - 8,990
Exceptional gain/(loss) - 81,797 (105) 81,797
============= =============
13. Unaudited quarterly income statement for continuing operations
Year ended
Half year
Quarter ended Quarter ended ended 31 December
31 March
2012 30 June 2012 30 June 2012 2011
(Unaudited) (Unaudited) (Unaudited) (Audited)
US$000 US$000 US$000 US$000
Revenue 60,256 49,255 109,511 213,375
Cost of sales (36,007) (42,734) (78,741) (156,652)
Cash production
costs:
- mining (12,707) (13,225) (25,932) (36,137)
- processing (10,827) (10,914) (21,741) (40,644)
- overheads (4,685) (4,789) (9,474) (23,232)
- royalties (4,339) (4,182) (8,521) (15,515)
(32,558) (33,110) (65,668) (115,528)
Changes in inventory 5,163 (97) 5,066 4,098
Other cost of sales (2,047) (3,732) (5,779) (6,202)
Depreciation and
amortisation (6,565) (5,795) (12,360) (39,020)
Gross profit 24,249 6,521 30,770 56,723
Administrative expenses (2,154) (3,166) (5,320) (9,657)
Exceptional administrative
expenses - - - (3,078)
Share based payments (559) (471) (1,030) (1,941)
Profit from operations 21,536 2,884 24,420 42,047
Restructure of hedge - - - (39,757)
Profit on disposal
of investments - - - 8,990
Finance items
Exchange gains/(losses) 145 219 364 (116)
Finance expense (858) (743) (1,601) (4,812)
Finance income 16 98 114 125
Profit before taxation 20,839 2,458 23,297 6,477
Analysed as:
Profit before taxation
and exceptional
items 20,839 2,458 23,297 40,322
Exceptional items - - - (33,845)
Profit before taxation 20,839 2,458 23,297 6,477
Taxation (6,884) (589) (7,473) (7,297)
Profit/(loss) for
the period 13,955 1,869 15,824 (820)
Attributable to:
Equity shareholders
of the parent company 12,597 1,611 14,208 (355)
Non-controlling
interest 1,358 258 1,616 (465)
13,955 1,869 15,824 (820)
EBITDA (1) 28,101 8,679 36,780 84,145
(1) EBITDA represents earnings before exceptional items, finance items, tax, depreciation and amortisation. EBITDA is not defined by IFRS but is commonly used as an indication of underlying cash generation.
14. Related party transactions
The table below sets out charges in the six month period and balances at 30 June 2012 between the Company (Avocet Mining PLC) and Group companies that were not wholly owned, in respect of management fees and interest on loans. There were no other related party transactions in the period requiring disclosure.
Avocet Mining PLC Wega Mining AS
Charged in Balance at Charged in Balance at
six months 30 June 2012 six months 30 June 2012
US$000 US$000 US$000 US$000
Societe des Mines de
Belahouro SA (90%) 3,595 121,012 4,207 106,187
Compensation paid to key management of the Group was US$1.4 million, including pension contributions of US$0.03 million. A share based payment expense of US$0.4 million was recognised in respect of awards made under the Performance Share Plan, the details of which were reported in the announcement made on 13 March 2012. Dividends received by Directors during the period in respect of shares held in the Company amounted to US$0.07 million.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR BRGDRSBXBGDB
1 Year Avocet Mining Chart |
1 Month Avocet Mining Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions
