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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Consol. Gen.Min | LSE:CGM | London | Ordinary Share | GB00B0T4LB03 | 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% | 24.00 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
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TIDMCGM
RNS Number : 8362I
China Goldmines PLC
19 March 2010
CHINA GOLDMINES PLC
("China Goldmines", "CGM", the "Company", or the "Group") (AIM:CGM)
UNAUDITED INTERIM FINANCIAL RESULTS
FOR THE SIX MONTH PERIOD ENDED
31 DECEMBER 2009
China Goldmines announces its unaudited interim financial results for the six
months period ended 31 December 2009.
Highlights
+----------------------------------------------------------------------------------------+
| Disposal of 100% interest in Westralian Resources Pty Ltd (WES), on 29 September 2009: |
| |
| - USD$25.7m Gross consideration received by the Company. |
| |
| - Warranties, indemnities and CGM's parent guarantee in |
| respect of the disposal were capped at USD$10m and expire |
| on 29 September 2010. No claims to date have been raised |
| or are expected. |
| |
| - The Company has no further interest in mining operations |
| within China or elsewhere. |
| |
| - The Company is regarded as an investing company under the |
| AIM Rules for Companies. |
| - The project required an injection of capital (estimated by |
| the directors to be in excess of USD$15m) in order to |
| develop the underground infrastructure. |
| |
| - Continued security breaches, theft and other local |
| community issues impacted the decision to make further |
| investment. |
| |
| - The Board of China Goldmines ultimately concluded that the |
| disposal of the project represented the best method to |
| preserve shareholder value. |
| |
+----------------------------------------------------------------------------------------+
| |
| Financial highlights |
| |
| - USD$21.0m of cash as at 31 December 2009 with no long term |
| debts or borrowings. |
| |
| - USD$23.1m of net assets position as at 31 December 2009. |
| |
| - USD$3.1m of consolidated profit for the Group in the six |
| month period ending 31 December 2009 (after crediting |
| foreign exchange gains of USD$4.9m and profit on |
| discontinued operations of USD$0.3m). |
| |
| - USD$2.2m of deferred consideration received in January |
| 2010 against payments incurred by the Group in relation to |
| the disposal. Cash balance as at 28 February 2010 of |
| USD$23m. |
| |
+----------------------------------------------------------------------------------------+
| |
| Following the disposal of its gold mining subsidiary on 29 |
| September 2009, CGM is now classified under the AIM Rules, as an |
| investing company. Accordingly, the Company is required to |
| complete an acquisition or acquisitions (or otherwise implement |
| an investing strategy, which will be subject to the approval of |
| shareholders) no later than 28 September 2010. The Company is |
| not subject to the Takeover Code as its securities are admitted |
| to AIM and its place of central management and control is outside |
| the United Kingdom. |
| |
+----------------------------------------------------------------------------------------+
| The interim report for the six month period ended 31 December |
| 2009 will shortly be available on the Company's website at |
| www.chinagoldmines.com. |
+----------------------------------------------------------------------------------------+
For further information contact:
+--------------------------+-------------------------------------+
| China Goldmines Plc: |
+----------------------------------------------------------------+
| Robert Adair | Tel:+44 1845-537037 |
| | Email: |
| | robert.adair@chinagoldmines.com |
+--------------------------+-------------------------------------+
| | |
| Frank Vanspeybroeck | Tel: +61 8 6216 5200 |
| | Email: frank@chinagoldmines.com |
+--------------------------+-------------------------------------+
| | |
+--------------------------+-------------------------------------+
| Marinko Vidovich | Tel:+61 8 6216 5200 |
| | Email: marinko@chinagoldmines.com |
+--------------------------+-------------------------------------+
| | |
| Brewin Dolphin (Nomad): | |
+--------------------------+-------------------------------------+
| Alexander Dewar | Tel:+44 131 529 0276 |
| | Fax:+44 131 529 0246 |
| | Email: |
| | alexander.dewar@brewinib.co.uk |
+--------------------------+-------------------------------------+
| | |
| Neil McDonald | Tel:+44 141 221 7733 |
| | Fax:+44 141 221 2666 |
| | Email: |
| | neil.mcdonald@brewinib.co.uk |
| | |
+--------------------------+-------------------------------------+
| Threadneedle | |
| Communications: | |
+--------------------------+-------------------------------------+
| Laurence Read | Tel: +44 20 7653 9855 |
| | Email: |
| | Laurence.read@threadneedlepr.co.uk |
+--------------------------+-------------------------------------+
| | |
| Beth Harris | Tel: +44 20 7653 9853 |
| | Email: |
| | beth.harris@threadneedlepr.co.uk |
+--------------------------+-------------------------------------+
Chairman's Statement
In December 2009, I was appointed to the Board of China Goldmines as a UK
resident non-executive chairman with a principal objective of evaluating the
best options to achieve maximum value for our existing shareholders.
Having appraised the financial viability of the Guanzhuang Gold Project in the
context of continued security breaches, theft and other local community issues
and the requirement, in the Directors' opinion to invest at least a further
USD$15 million in the project infrastructure, the previous Board took the
decision in August 2009 to dispose of the project as the best strategy for
preserving shareholder value.
The Company successfully concluded the disposal of its mining operations in
China on 29 September 2009 through the sale of Westralian Resources Pty Ltd
(WES) to Cosmos Castle Management Limited for a gross consideration of
USD$26.3m.
As part of the disposal the Company and its subsidiary Global Resources Ventures
Limited ("GRV") provided warranties, jointly and severally, to Cosmos Castle
Management Limited and its successors. These warranties, which are set out in
the circular dated 1 September 2009 expire on 28 September 2010, save for any
antecedent breaches claimed by the acquirer which have not been resolved. They
carry an aggregate liability for the Company and GRV limited to US$10m and
relate principally to title, financial position and accuracy of accounts: the
Company is currently not aware of anything which may lead to a claim. It is
reassured that it successfully negotiated the release of $2.2m as announced on
22nd January 2010.
As at 31 December 2009 the Company had net assets of USD$23m, all of a liquid
cash nature with minimal liabilities.
The Board is working closely with its Advisors and shareholders to identify
opportunities to maximise shareholder value from CGM's strong cash position
whilst simultaneously reviewing operational costs through restructuring and
downsizing of overseas compliance and corporate costs.
The Company has concluded a strategic review and has put in place a process for
assessing new projects within a clearly defined rationale to potentially acquire
and build value for shareholders utilising current funds of approximately
USD$23m. Any decision regarding specific acquisitions will be subject to
shareholder approval and if a suitable proposition is not found a return of
capital will be proposed to shareholders.
While CGM's existing expertise is in mining, the Company will also assess assets
within the oil and gas sectors, and sectors outside of resources providing
certain key parameters are met. Our framework for new projects is as follows:-
+-------------------------------------------------------------------+
| |
| - Resource propositions (oil and gas or mining): |
| Producing or near production assets |
| Third party resource validation |
| Medium to low political risk |
| - Non resource propositions: |
| Revenue generating |
| Profitable or near to profit |
| Market leader or recognised as one of the market leaders |
| High barriers to entry |
| Strong UK/European market position |
| |
+-------------------------------------------------------------------+
We are examining a range of options and approaches through our own channels
together with proposals from outside of the Company and through our Advisors we
will evaluate each project on the above criteria. Viable propositions with
incumbent management team are being sought with a view that a transaction might
be completed by the end of September 2010. Our objective is to examine projects
that could quickly derive benefit from deployment of the funds we have at our
disposal.
At a corporate level we have undergone significant changes. The Board would
like to acknowledge its thanks and appreciation to the many staff who
demonstrated high levels of commitment and professionalism to the Guanzhuang
Gold Project and particularly to Mr Clive Donner the former chairman and Dr Evan
Kirby, non executive director, for their contribution to the Company since
incorporation.
Robert Adair
Non Executive Chairman
+-------------------------------------------------------------------+
| Financial Review |
| |
| The Group recorded a consolidated profit for the six month period |
| ending 31 December 2009 of USD$3.1m after crediting foreign |
| exchange gains of USD$4.9m and profit on discontinued operations |
| of USD$0.3m. In the corresponding period to 31 December 2008 the |
| Group recorded a loss of USD$19.3m. |
| Discontinued operations represents the Hunan Westralian Mining |
| Company Ltd (HWM) and Westralian Resources Pty Ltd (WES) |
| subsidiaries that were disposed of together with costs incurred |
| post disposal that relate to the disposed mining activities, plus |
| the impairments that were recognised in writing off capitalised |
| mining expenditure. International Accounting Standards require |
| the results of discontinued operations to be shown separately on |
| the face of the consolidated statement of comprehensive income. |
| Higher than expected operational expenses associated with office |
| expenses and professional fees (USD$1.1m) include one non |
| recurring fee directly relating to the disposal of the |
| subsidiaries (USD$0.6m). |
| The Cash position at 31 December 2009 was USD$21m with no long |
| term debts or borrowings and the Group had net assets of USD$23m. |
| At 28 February 2010 the cash position was USD$23m. The majority |
| of cash balances are currently held in USD$. |
| |
| |
| |
| Marinko Vidovich |
| Chief Financial Officer |
| |
+-------------------------------------------------------------------+
Financial Results
+---------------+
| Consolidated |
| Statement Of |
| Comprehensive |
| Income |
| For The |
| Half-Year |
| Ended 31 |
| December 2009 |
+---------------+
+-------------------------------+------+-----------+-----------+-----------+
| |Note | Six | Six | Year |
| | | Months | Months | Ended |
| | | Ended | Ended | 30 June |
| | | 31 | 31 | 2009 |
| | | December | December | US$'000 |
| | | 2009 | 2008 | Audited |
| | | US$'000 | US$'000 | |
| | | Unaudited | Unaudited | |
+-------------------------------+------+-----------+-----------+-----------+
| | | | | |
| CONTINUING OPERATIONS | | | | |
+-------------------------------+------+-----------+-----------+-----------+
| Salaries and employee | | (362) | (441) | (717) |
| benefits | | | | |
+-------------------------------+------+-----------+-----------+-----------+
| Office expenses and | | (1,162) | (561) | (868) |
| professional fees | | | | |
+-------------------------------+------+-----------+-----------+-----------+
| Consulting expenses | | (293) | (405) | (716) |
+-------------------------------+------+-----------+-----------+-----------+
| Travel and accommodation | | (160) | (149) | (215) |
| expenses | | | | |
+-------------------------------+------+-----------+-----------+-----------+
| Other expenses | | (213) | (153) | (543) |
+-------------------------------+------+-----------+-----------+-----------+
| OPERATING LOSS | | (2,190) | (1,709) | (3,059) |
+-------------------------------+------+-----------+-----------+-----------+
| Foreign exchange | | 4,922 | (18,164) | (11,413) |
| gains/(losses) | | | | |
+-------------------------------+------+-----------+-----------+-----------+
| Financial income | | 4 | 330 | 349 |
+-------------------------------+------+-----------+-----------+-----------+
| PROFIT/(LOSS) BEFORE TAX | | 2,736 | (19,543) | (14,123) |
+-------------------------------+------+-----------+-----------+-----------+
| Tax | 2 | - | - | - |
+-------------------------------+------+-----------+-----------+-----------+
| PROFIT/(LOSS) FOR THE PERIOD | | 2,736 | (19,543) | (14,123) |
| FROM CONTINUING OPERATIONS | | | | |
+-------------------------------+------+-----------+-----------+-----------+
| DISCONTINUED OPERATION | | | | |
+-------------------------------+------+-----------+-----------+-----------+
| Profit/(loss) for the period | 4 | 349 | 226 | (22,081) |
| from discontinued operation | | | | |
+-------------------------------+------+-----------+-----------+-----------+
| PROFIT/(LOSS) FOR THE PERIOD | | 3,085 | (19,317) | (36,204) |
+-------------------------------+------+-----------+-----------+-----------+
| OTHER COMPREHENSIVE INCOME | | | | |
+-------------------------------+------+-----------+-----------+-----------+
| Exchange differences on | | (3,611) | 10,548 | 5,682 |
| translation of foreign | | | | |
| operations | | | | |
+-------------------------------+------+-----------+-----------+-----------+
| Exchange gain recognised on | | (4,935) | - | - |
| disposal of foreign | | | | |
| operations | | | | |
+-------------------------------+------+-----------+-----------+-----------+
| OTHER COMPREHENSIVE INCOME | | (8,546) | 10,548 | 5,682 |
| FOR THE PERIOD (NET OF TAX) | | | | |
+-------------------------------+------+-----------+-----------+-----------+
| TOTAL COMPREHENSIVE INCOME | | (5,461) | (8,769) | (30,522) |
| FOR THE PERIOD | | | | |
+-------------------------------+------+-----------+-----------+-----------+
| Profit/(loss) for the period | | | | |
| attributable to: | | | | |
+-------------------------------+------+-----------+-----------+-----------+
| Equity holders of the parent | | 3,085 | (19,309) | (36,204) |
+-------------------------------+------+-----------+-----------+-----------+
| Non-controlling interest | | - | (8) | - |
+-------------------------------+------+-----------+-----------+-----------+
| | | 3,085 | (19,317) | (36,204) |
+-------------------------------+------+-----------+-----------+-----------+
| Total comprehensive income | | | | |
| attributable to: | | | | |
+-------------------------------+------+-----------+-----------+-----------+
| Equity holders of the parent | | (5,461) | (8,761) | (30,522) |
+-------------------------------+------+-----------+-----------+-----------+
| Non-controlling interest | | - | (8) | - |
+-------------------------------+------+-----------+-----------+-----------+
| | | (5,461) | (8,769) | (30,522) |
+-------------------------------+------+-----------+-----------+-----------+
| | | | | |
+-------------------------------+------+-----------+-----------+-----------+
| From continuing and discontinued operations | | |
+--------------------------------------------------+-----------+-----------+
| Basic and diluted | 3 | 6.4 | (39.8) | (74.7) |
| earnings/(loss) per share | | | | |
| (cents) | | | | |
+-------------------------------+------+-----------+-----------+-----------+
| From continuing operations | | | | |
+-------------------------------+------+-----------+-----------+-----------+
| Basic and diluted | 3 | 5.6 | (40.3) | (27.6) |
| earnings/(loss) per share | | | | |
| (cents) | | | | |
+-------------------------------+------+-----------+-----------+-----------+
The above consolidated statement of comprehensive income should be read in
conjunction with the accompanying notes.
+--------+-------------+----------+----------+----------+----------+----------+----------+-----------------+----+--------+
| | | |
| | Consolidated Statement Of Changes In Equity | |
| | For The Half Year Ended 31 December 2009 | |
| | | |
+--------+------------------------------------------------------------------------------------------------------+--------+
| | Attributable to Members of China Goldmines | | |
| | | | |
+----------------------+-----------------------------------------------------------------+-----------------+-------------+
| | | Share | Foreign | | | | Non-controlling | |
| | Share | Premium | Exchange | Other | Retained | | interest | |
| | Capital | Reserve | Reserve | Reserves | Earnings | Total | USD$'000 | Total |
| | USD$'000 | USD$'000 | USD$'000 | USD$'000 | USD$'000 | USD$'000 | | Equity |
| | | | | | | | | USD$'000 |
+----------------------+----------+----------+----------+----------+----------+----------+-----------------+-------------+
| | 920 | 66,170 | (1,432) | 61 | (6,671) | 59,048 | (12) | 59,036 |
| Balance at 1 July | | | | | | | | |
| 2008 | | | | | | | | |
+----------------------+----------+----------+----------+----------+----------+----------+-----------------+-------------+
| Exchange differences | - | - | 10,548 | - | - | 10,548 | - | 10,548 |
| on translation of | | | | | | | | |
| foreign operation | | | | | | | | |
+----------------------+----------+----------+----------+----------+----------+----------+-----------------+-------------+
| | - | - | 10,548 | - | - | 10,548 | - | 10,548 |
| Net income/(expense) | | | | | | | | |
| recognised directly | | | | | | | | |
| in equity | | | | | | | | |
+----------------------+----------+----------+----------+----------+----------+----------+-----------------+-------------+
| | - | - | - | - | (19,309) | (19,309) | (8) | (19,317) |
| Loss for the | | | | | | | | |
| half-year | | | | | | | | |
+----------------------+----------+----------+----------+----------+----------+----------+-----------------+-------------+
| | - | - | 10,548 | - | (19,309) | (8,761) | (8) | (8,769) |
| Total comprehensive | | | | | | | | |
| income for the | | | | | | | | |
| period | | | | | | | | |
+----------------------+----------+----------+----------+----------+----------+----------+-----------------+-------------+
| | 920 | 66,170 | 9,116 | 61 | (25,980) | 50,287 | (20) | 50,267 |
| Balance at 31 | | | | | | | | |
| December 2008 | | | | | | | | |
| Unaudited | | | | | | | | |
+----------------------+----------+----------+----------+----------+----------+----------+-----------------+-------------+
| | - | - | (4,867) | - | - | (4,867) | - | (4,867) |
| Exchange differences | | | | | | | | |
| on translation of | | | | | | | | |
| foreign operation | | | | | | | | |
+----------------------+----------+----------+----------+----------+----------+----------+-----------------+-------------+
| | - | - | (4,867) | - | - | (4,867) | - | (4,867) |
| Net income/(expense) | | | | | | | | |
| recognised directly | | | | | | | | |
| in equity | | | | | | | | |
+----------------------+----------+----------+----------+----------+----------+----------+-----------------+-------------+
| | - | - | - | - | (16,895) | (16,895) | 8 | (16,887) |
| Loss for the | | | | | | | | |
| half-year | | | | | | | | |
+----------------------+----------+----------+----------+----------+----------+----------+-----------------+-------------+
| | - | - | (4,867) | - | (16,895) | (21,762) | 8 | (21,754) |
| Total comprehensive | | | | | | | | |
| income for the | | | | | | | | |
| period | | | | | | | | |
+----------------------+----------+----------+----------+----------+----------+----------+-----------------+-------------+
| | 920 | 66,170 | 4,249 | 61 | (42,875) | 28,525 | (12) | 28,513 |
| Balance at 30 June | | | | | | | | |
| 2009 Audited | | | | | | | | |
+----------------------+----------+----------+----------+----------+----------+----------+-----------------+-------------+
| | - | - | (3,611) | - | - | (3,611) | - | (3,611) |
| Exchange differences | | | | | | | | |
| on translation of | | | | | | | | |
| foreign operation | | | | | | | | |
+----------------------+----------+----------+----------+----------+----------+----------+-----------------+-------------+
| | - | - | (4,935) | - | - | (4,935) | 12 | (4,923) |
| Realisation of | | | | | | | | |
| reserves on disposal | | | | | | | | |
| of foreign | | | | | | | | |
| operations | | | | | | | | |
+----------------------+----------+----------+----------+----------+----------+----------+-----------------+-------------+
| | - | - | (8,546) | - | - | (8,546) | 12 | (8,534) |
| Net income/(expense) | | | | | | | | |
| recognised directly | | | | | | | | |
| in equity | | | | | | | | |
+----------------------+----------+----------+----------+----------+----------+----------+-----------------+-------------+
| | - | - | - | - | 3,085 | 3,085 | - | 3,085 |
| Profit for the | | | | | | | | |
| half-year | | | | | | | | |
+----------------------+----------+----------+----------+----------+----------+----------+-----------------+-------------+
| | - | - | (8,546) | - | 3,085 | (5,461) | 12 | (5,449) |
| Total comprehensive | | | | | | | | |
| income for the | | | | | | | | |
| period | | | | | | | | |
+----------------------+----------+----------+----------+----------+----------+----------+-----------------+-------------+
| | 920 | 66,170 | (4,297) | 61 | (39,790) | 23,064 | - | 23,064 |
| Balance at 31 | | | | | | | | |
| December 2009 | | | | | | | | |
| Unaudited | | | | | | | | |
+----------------------+----------+----------+----------+----------+----------+----------+-----------------+-------------+
| | | | | | | | | | | |
+--------+-------------+----------+----------+----------+----------+----------+----------+-----------------+----+--------+
The above consolidated statement of changes in equity should be read in
conjunction with the accompanying notes.
+-----------------------------------------------------------------------+
| |
| Consolidated Statement of Financial Position |
| As At 31 December 2009 |
+-----------------------------------------------------------------------+
+----------------------------------------+---------------+---------------+---------------+
| | 31 December | 31 December | 30 June |
| | 2009 | 2008 | 2009 |
| | US$'000 | US$'000 | US$'000 |
| | Unaudited | Unaudited | Audited |
+----------------------------------------+---------------+---------------+---------------+
| NON-CURRENT ASSETS | | | |
+----------------------------------------+---------------+---------------+---------------+
| Intangible assets | - | 613 | 6 |
+----------------------------------------+---------------+---------------+---------------+
| Mining properties | - | 36,231 | 21,385 |
+----------------------------------------+---------------+---------------+---------------+
| Property, plant and equipment | 47 | 3,569 | 2,351 |
+----------------------------------------+---------------+---------------+---------------+
| Trade and other receivables | - | 315 | 320 |
+----------------------------------------+---------------+---------------+---------------+
| | 47 | 40,728 | 24,062 |
+----------------------------------------+---------------+---------------+---------------+
| | | | |
+----------------------------------------+---------------+---------------+---------------+
| CURRENT ASSETS | | | |
+----------------------------------------+---------------+---------------+---------------+
| Inventories | - | 1,215 | 1,247 |
+----------------------------------------+---------------+---------------+---------------+
| Trade and other receivables | 3,050 | 711 | 151 |
+----------------------------------------+---------------+---------------+---------------+
| Cash and cash equivalents | 21,032 | 10,316 | 6,192 |
+----------------------------------------+---------------+---------------+---------------+
| | 24,082 | 12,242 | 7,590 |
+----------------------------------------+---------------+---------------+---------------+
| TOTAL ASSETS | 24,129 | 52,970 | 31,652 |
+----------------------------------------+---------------+---------------+---------------+
| | | | |
+----------------------------------------+---------------+---------------+---------------+
| CURRENT LIABILITIES | | | |
+----------------------------------------+---------------+---------------+---------------+
| Trade and other payables | (1,065) | (2,703) | (3,139) |
+----------------------------------------+---------------+---------------+---------------+
| TOTAL LIABILITIES | (1,065) | (2,703) | (3,139) |
+----------------------------------------+---------------+---------------+---------------+
| NET ASSETS | 23,064 | 50,267 | 28,513 |
+----------------------------------------+---------------+---------------+---------------+
| | | | |
+----------------------------------------+---------------+---------------+---------------+
| EQUITY | | | |
+----------------------------------------+---------------+---------------+---------------+
| Share capital | 920 | 920 | 920 |
+----------------------------------------+---------------+---------------+---------------+
| Share premium account | 66,170 | 66,170 | 66,170 |
+----------------------------------------+---------------+---------------+---------------+
| Foreign exchange reserve | (4,297) | 9,116 | 4,249 |
+----------------------------------------+---------------+---------------+---------------+
| Other reserves | 61 | 61 | 61 |
+----------------------------------------+---------------+---------------+---------------+
| Retained earnings | (39,790) | (25,980) | (42,875) |
+----------------------------------------+---------------+---------------+---------------+
| EQUITY ATTRIBUTABLE TO EQUITY HOLDERS | 23,064 | 50,287 | 28,525 |
| OF THE PARENT COMPANY | | | |
+----------------------------------------+---------------+---------------+---------------+
| Non-controlling interest | - | (20) | (12) |
+----------------------------------------+---------------+---------------+---------------+
| TOTAL EQUITY | 23,064 | 50,267 | 28,513 |
+----------------------------------------+---------------+---------------+---------------+
The above consolidated statement of financial position should be read in
conjunction with the accompanying notes.
+----------+-------------------------------+------------+------------+------------+----------+
| | |
| | Consolidated Statement Of Cashflows |
| | For The Half-Year Ended 31 December 2009 |
| | |
+----------+---------------------------------------------------------------------------------+
| | Six Months | Six Months | Year Ended | |
| | Ended | Ended | 30 June | |
| | 31 | 31 | 2009 | |
| | December | December | US$'000 | |
| | 2009 | 2008 | Audited | |
| | US$'000 | US$'000 | | |
| | Unaudited | Unaudited | | |
+------------------------------------------+------------+------------+------------+----------+
| | (3,503) | (3,793) | (25,881) | |
| Operating loss from operations | | | | |
+------------------------------------------+------------+------------+------------+----------+
| Adjustments for: | | | | |
+------------------------------------------+------------+------------+------------+----------+
| Depreciation and impairment of property, | 230 | 231 | 803 | |
| plant and equipment | | | | |
+------------------------------------------+------------+------------+------------+----------+
| Amortisation and impairment of | 7 | 7 | 19,081 | |
| intangibles | | | | |
+------------------------------------------+------------+------------+------------+----------+
| Exploration and development expenditure | - | 1,352 | - | |
+------------------------------------------+------------+------------+------------+----------+
| Net exchange differences | (2,257) | 760 | (334) | |
+------------------------------------------+------------+------------+------------+----------+
| Operating cash flows before movements in | (5,523) | (1,443) | (6,331) | |
| working capital, net of effects from | | | | |
| sale of subsidiaries | | | | |
+------------------------------------------+------------+------------+------------+----------+
| (Increase)/decrease in receivables | (106) | (352) | 484 | |
+------------------------------------------+------------+------------+------------+----------+
| (Increase) in inventories | - | (854) | (742) | |
+------------------------------------------+------------+------------+------------+----------+
| (Decrease)/increase in trade and other | (151) | 1,262 | 1,423 | |
| payables | | | | |
+------------------------------------------+------------+------------+------------+----------+
| | (5,780) | | (5,166) | |
| Net cash outflow from operating | | (1,387) | | |
| activities | | | | |
+------------------------------------------+------------+------------+------------+----------+
| | | | | |
+------------------------------------------+------------+------------+------------+----------+
| INVESTING ACTIVITIES | | | | |
+------------------------------------------+------------+------------+------------+----------+
| Proceeds on sale of subsidiaries, net of | 21,103 | - | - | |
| cash disposed | | | | |
+------------------------------------------+------------+------------+------------+----------+
| Payments for environmental deposits | - | - | (15) | |
+------------------------------------------+------------+------------+------------+----------+
| Purchases of property, plant and | (81) | (2,487) | (1,529) | |
| equipment | | | | |
+------------------------------------------+------------+------------+------------+----------+
| Payments for licences, exploration and | (235) | (4,362) | (8,940) | |
| development expenditure | | | | |
+------------------------------------------+------------+------------+------------+----------+
| Interest received | 5 | 344 | 365 | |
+------------------------------------------+------------+------------+------------+----------+
| Net cash inflow/(outflow) from investing | 20,792 | (6,505) | (10,119) | |
| activities | | | | |
+------------------------------------------+------------+------------+------------+----------+
| | Net increase/(decrease) in | 15,012 | (7,892) | (15,285) | |
| | cash and cash equivalents | | | | |
+----------+-------------------------------+------------+------------+------------+----------+
| | Cash and cash equivalents at | 6,192 | 25,147 | 25,147 | |
| | the beginning of the period | | | | |
+----------+-------------------------------+------------+------------+------------+----------+
| | Movements in foreign exchange | (172) | (6,940) | (3,670) | |
| | rate | | | | |
+----------+-------------------------------+------------+------------+------------+----------+
| | CASH AND CASH EQUIVALENTS AT | 21,032 | 10,315 | 6,192 | |
| | THE END OF THE PERIOD | | | | |
+----------+-------------------------------+------------+------------+------------+----------+
| | | | | | |
+----------+-------------------------------+------------+------------+------------+----------+
The above consolidated statement of cashflows should be read in conjunction with
the accompanying notes.
Notes to the Consolidated Financial Information
NOTE 1(a): GENERAL INFORMATION
The financial information set out in this report does not constitute full
accounts for the purposes of Section 434 of the Companies Act 2006. The interim
accounts for the six months ended 31 December 2009 and 31 December 2008 are
unaudited. The comparative figures for the financial year ended 30 June 2009 are
not the Company's statutory accounts for the financial year but are abridged
from those accounts which have been reported on by the Company's auditors, whose
report on the consolidated financial statements prepared under International
Financial Reporting Standards, was unqualified. The interim accounts have been
prepared on the basis of the accounting policies set out in the annual financial
statements of the Group for the year ended 30 June 2009, except for the impact
of the adoption of the Standards and Interpretations described below.
IAS 1 (revised 2007) Presentation of Financial Statements (effective for annual
periods beginning on or after 1 January 2009). The revised Standard has
introduced a number of terminology changes (including revised titles for the
interim financial results) and has resulted in a number of changes in
presentation and disclosure. However, the revised Standard has had no impact on
the reported results or financial position of the Group.
NOTE 1(b): REVENUE
Revenue for the period ended 31 December 2008 is stated before capitalisation of
pre-production revenue. The balance as at 30 June 2009 represents all necessary
adjustments to capitalise these amounts in accordance with International
Accounting Standard 16.
NOTE 2: TAXATION
No liability to tax is expected to have arisen during this period.
NOTE 3: EARNINGS PER SHARE
The calculation of the earnings/(loss) per share is based on the following data:
+----------------------------------------+---------------+---------------+---------------+
| | Six Months | Six Months | Year Ended |
| | Ended | Ended | 30 June |
| | 31 December | 31 December | 2009 |
| | 2009 | 2008 | US$'000 |
| | US$'000 | US$'000 | Audited |
| | Unaudited | Unaudited | |
+----------------------------------------+---------------+---------------+---------------+
| Profit/(Loss) | | | |
+----------------------------------------+---------------+---------------+---------------+
| From continuing and discontinued operations | | |
+--------------------------------------------------------+---------------+---------------+
| Profit/(Loss) used in calculating | 3,085 | (19,309) | (25,881) |
| basic and diluted loss per share for | | | |
| the period attributable to the equity | | | |
| holders of the parent | | | |
+----------------------------------------+---------------+---------------+---------------+
| | | | |
+----------------------------------------+---------------+---------------+---------------+
| From continuing operations | | | |
+----------------------------------------+---------------+---------------+---------------+
| Profit/(Loss) used in calculating | 2,736 | (19,543) | (14,123) |
| basic and diluted loss per share for | | | |
| the period attributable to the equity | | | |
| holders of the parent | | | |
+----------------------------------------+---------------+---------------+---------------+
| | | | |
+----------------------------------------+---------------+---------------+---------------+
| Number of shares | | | |
+----------------------------------------+---------------+---------------+---------------+
| Weighted averge number of ordinary | 48,475 | 48,475 | 48,475 |
| shares for the purpose of basic and | | | |
| diluted earnings/(loss) per share | | | |
+----------------------------------------+---------------+---------------+---------------+
The above figures are not affected by any dilutive share options as no share
options have been issued in the period.
NOTE 4: DISCONTINUED OPERATION
(a) Description
On 26 August 2009 the Company's 100% owned subsidiary, Global Resources Ventures
Limited ("GRV"), signed a Share Purchase Agreement with Cosmos Castle Management
Limited, a company incorporated in the British Virgin Islands, to sell all of
the issued securities of Westralian Resources Pty Ltd ("Westralian"). Settlement
of the sale occurred on 30 September 2009, from which date Westralian and its
80% owned subsidiary Hunan Westralian Mining Co. Ltd ceased to be consolidated
into the Group.
Financial information relating to the discontinued operation for the period to
the date of disposal is set out below.
(b) Financial performance and cash flow information
The financial performance and cash flow information presented are for the three
months ended 30 September 2009 and the half-year ended 31 December 2008.
+----------------------------------+---------------+---------------+---------------+
| | Period Ended | Six Months | Year Ended |
| | 30 September | Ended | 30 June |
| | 2009 | 31 December | 2009 |
| | US$'000 | 2008 | US$'000 |
| | Unaudited | US$'000 | Audited |
| | | Unaudited | |
+----------------------------------+---------------+---------------+---------------+
| Revenue | - | 235 | 397 |
+----------------------------------+---------------+---------------+---------------+
| Expenses | (1,313) | (2,319) | (23,218) |
+----------------------------------+---------------+---------------+---------------+
| Operating loss | (1,313) | (2,084) | (22,821) |
+----------------------------------+---------------+---------------+---------------+
| Foreign exchange (losses)/gains | (1) | 2,295 | 724 |
+----------------------------------+---------------+---------------+---------------+
| Financial income | - | 15 | 16 |
+----------------------------------+---------------+---------------+---------------+
| Profit/(loss) before income tax | (1,314) | 226 | (22,081) |
+----------------------------------+---------------+---------------+---------------+
| Income tax expense | - | - | - |
+----------------------------------+---------------+---------------+---------------+
| Profit/(loss) after income tax | (1,314) | 226 | (22,081) |
| expense of discontinued | | | |
| operation | | | |
+----------------------------------+---------------+---------------+---------------+
| | | | |
+----------------------------------+---------------+---------------+---------------+
| Gain on deconsolidation of | 1,663 | - | - |
| subsidiaries before income tax | | | |
+----------------------------------+---------------+---------------+---------------+
| Income tax expense | - | - | - |
+----------------------------------+---------------+---------------+---------------+
| Gain on deconsolidation of | 1,663 | - | - |
| subsidiaries after income tax | | | |
+----------------------------------+---------------+---------------+---------------+
| | | | |
+----------------------------------+---------------+---------------+---------------+
| Profit/(loss) from discontinued | 349 | 226 | (16,841) |
| operation | | | |
+----------------------------------+---------------+---------------+---------------+
| | | | |
+----------------------------------+---------------+---------------+---------------+
| Net cash outflow from ordinary | (1,314) | (4,881) | (5,096) |
| activities | | | |
+----------------------------------+---------------+---------------+---------------+
| Net cash inflow/(outflow) from | 20,787 | (2,482) | (6,935) |
| investing activities (2009 | | | |
| includes a net inflow of | | | |
| $21,102,728 from the sale of the | | | |
| subsidiaries) | | | |
+----------------------------------+---------------+---------------+---------------+
| Net cash inflow from financing | - | 3,927 | 8,381 |
| activities | | | |
+----------------------------------+---------------+---------------+---------------+
| Net increase/(decrease) in cash | 19,473 | (3,436) | (3,650) |
| generated by the discontinued | | | |
| operation | | | |
+----------------------------------+---------------+---------------+---------------+
(c) Details of the sale of subsidiaries
+----------------------------------+---------------+---------------+---------------+
| | Period Ended | Six Months | Year Ended |
| | 30 September | Ended | 30 June |
| | 2009 | 31 December | 2009 |
| | US$'000 | 2008 | US$'000 |
| | Unaudited | US$'000 | Audited |
| | | Unaudited | |
+----------------------------------+---------------+---------------+---------------+
| Consideration received or | | | |
| receivable: | | | |
+----------------------------------+---------------+---------------+---------------+
| Net cash (after costs of | 21,589 | - | - |
| disposal) | | | |
+----------------------------------+---------------+---------------+---------------+
| Amount held on trust until 31 | 2,128 | - | - |
| December 2009 | | | |
+----------------------------------+---------------+---------------+---------------+
| Total disposal consideration | 23,717 | - | - |
+----------------------------------+---------------+---------------+---------------+
| | | | |
+----------------------------------+---------------+---------------+---------------+
| Carrying amount of net assets | (23,751) | - | - |
| sold | | | |
+----------------------------------+---------------+---------------+---------------+
| Impairment of intercompany loans | (5,063) | - | - |
| on deconsolidation | | | |
+----------------------------------+---------------+---------------+---------------+
| Accumulated losses disposed on | 6,760 | - | - |
| deconsolidation | | | |
+----------------------------------+---------------+---------------+---------------+
| Gain on sale and deconsolidation | 1,663 | - | - |
| before income tax | | | |
+----------------------------------+---------------+---------------+---------------+
| Income tax expense | - | - | - |
+----------------------------------+---------------+---------------+---------------+
| Gain on sale and deconsolidation | 1,663 | - | - |
| after income tax | | | |
+----------------------------------+---------------+---------------+---------------+
In accordance with the terms of the sale agreement, $2.9 million was being held
on trust for three months from the date of settlement which could be met against
certain expenses of the business sold. Management estimated that expenses of
$771,454 were satisfied by the amounts held on trust, resulting in the net funds
being received during January 2010.
At 30 June 2009 the carrying value of mining properties and other consolidated
assets were impaired to reflect the disposal of the subsidiaries. A total
write-down of $18,388,341 was recognised against the mining properties of the
disposed subsidiaries, with the amount reported below being net of this
impairment.
The carrying amounts of assets and liabilities at the date of
sale/deconsolidation (30 September 2009) were:
+----------------------------------------------+---------------+---------------+
| | | 30 September |
| | | 2009 |
| | | US$'000 |
| | | Unaudited |
+----------------------------------------------+---------------+---------------+
| Cash | | 486 |
+----------------------------------------------+---------------+---------------+
| Trade and other receivables | | 442 |
+----------------------------------------------+---------------+---------------+
| Plant and equipment | | 2,130 |
+----------------------------------------------+---------------+---------------+
| Mining properties | | 22,728 |
+----------------------------------------------+---------------+---------------+
| Total assets | | 25,786 |
+----------------------------------------------+---------------+---------------+
| | | |
+----------------------------------------------+---------------+---------------+
| Trade and other payables | | (2,035) |
+----------------------------------------------+---------------+---------------+
| Total liabilities | | (2,035) |
+----------------------------------------------+---------------+---------------+
| Net assets | | 23,751 |
+----------------------------------------------+---------------+---------------+
NOTE 5: CONTINGENCIES
There has been no change in contingent liabilities or contingent assets since
the last annual reporting date.
NOTE 6: SUBSEQUENT EVENTS
No matter or circumstance has arisen since 31 December 2009, which has
significantly affected, or may significantly affect the operations of the group,
the result of those operations, or the state of affairs of the group in
subsequent financial years.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR KMGMFFRRGGZZ
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