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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Gladstone Pac | LSE:GPN | London | Ordinary Share | AU0000XINAC5 | ORD SHS NPV |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 14.50 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
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TIDMGPN
RNS Number : 5227V
Gladstone Pacific Nickel Limited
03 November 2010
GLADSTONE PACIFIC NICKEL LTD
ACN 104 261 887
Final Results for the year ended 30 June 2010
3 November 2010
Gladstone Pacific Nickel Limited ("GPNL" or "the Company") is pleased to report
its final results for the year ended 30 June 2010. Extracts of the financial
report are set out below and a full copy will be available on the Company's
website prior to the Company's Annual General Meeting.
Chairman's Review
The Global Financial Crisis ("GFC") has continued to impact on world capital
markets, business confidence in commodity markets, and in turn, has continued to
impact on the timing of the Gladstone Nickel Project ("GNP" or the "Project").
The major issue in moving the GNP to its next stage apart from the lingering
effects of the GFC is the ability of the Company to secure financing.
Several new Projects were considered during the period, aiming at providing an
earlier revenue stream whilst preserving the critical GNP assets. Relationships
with key stakeholders critical to the success of the GNP have also been
maintained during the period.
This year saw a number of significant shareholder and Board changes. Mr Clive
Palmer and his associated entities purchased additional GPNL shares, taking
their total shareholding to represent 50.04% of the Company's ordinary shares in
issue. A number of Board appointments and resignations followed the acquisition.
In August 2010, QNI Resources Pty Ltd ("QNI") ( a company wholly owned by Mr
Clive Palmer) through which he owns 50.04% of the ordinary shares of the GPNL,
made an unconditional cash offer of GBP0.14 per share, on 21 September 2010, for
all the ordinary shares in GPNL it does not already own. Details of the QNI
takeover offer and the Company's response can be found in the Bidder and Target
Statements (including the Supplementary Target's Statement), which have been
separately distributed to shareholders. Mr Dominic Martino, as the only
independent director of GPNL, has made a recommendation in relation to the QNI
takeover offer to GPNL shareholders in the Target's Statement. Mr Martino
recommends shareholders REJECT the Offer if they have a medium to long term
investment horizon and are prepared to accept the significant and material
ongoing risks of an investment in GPNL. However, if shareholders do not wish to
accept those significant and material ongoing risks of an investment in GPNL or
have a shorter term investment horizon, they may wish to CONSIDER ACCEPTING
QNI's Offer. The key reasons for Mr Martino's recommendation are set out in the
Target's Statement.
The offer closed on 25 October 2010.
On 25 October 2010, an application was made to the Takeovers Panel in Australia
by RAB Special Situations (Master) Fund Limited (a shareholder of the Company)
alleging that unacceptable circumstances had arisen in relation to the takeover
offer for GPNL by QNI in respect of alleged deficiencies in the Company's
Target's Statement, and sought orders that a further supplementary Target's
Statement be issued and accepting shareholders be given a right to withdraw
their acceptances. The Takeovers Panel made an interim order to the effect of
preventing QNI from processing acceptances of the offer or paying consideration
until further order or the matter being determined. At the date of this report,
the Takeovers Panel had yet to decide to conduct proceedings in relation to the
matter.
On 21 October the Company's' Nominated Adviser for the purposes of the AIM Rules
for Companies resigned. The Company's shares will be temporarily suspended from
trading on AIM until such time as a replacement Nominated Adviser is appointed.
If by 19 November 2010, the Company has failed to appoint a replacement
Nominated Adviser, the admission of the Company's shares to trading on AIM will
be cancelled. On 25 October, the Company's Broker resigned. The board is
reviewing its position in relation to the appointment of the Nominated Advisor
and Broker.
This year's notable developments include:
· October 2009:
GPNL executed a Memorandum of Understanding ( "MOU') for the development of a
heap leach project at Marlborough with China Tianchen Engineering Corp ("TCC").
Preliminary work was commenced on the heap leach project at Marlborough in
November 2009. In January 2010, this project was put on hold until such time as
a clear pathway forward for financing and development is identified. The assets
generated in the partially completed construction works have been maintained and
could be utilized should that be deemed appropriate in the future.
· January 2010
Related entities to Mr Clive Palmer acquired an additional 950,000 GPNL ordinary
shares at 17 pence per share. Following this purchase, Mr. Palmer and his
related entities held 35,495,233 ordinary shares in the Company representing
50.04% of the ordinary shares in issue.
· April 2010
An extraordinary general meeting of members held in April 2010 resulted in the
removal of two Directors and appointment of two new Directors, Mr. Vimal Sharma
and Mr. William Haseler . In May 2010, Mr. Neil Meadows was appointed as acting
Managing Director. Mr Sharma subsequently resigned on 9 April 2010. Mr Haseler
resigned on 9 September 2010 and Mr Meadows resigned on the 13 September 2010.
Post Year End:
· July 2010
The Memorandum of Understanding with TCC, for the development of a heap leach
project at Marlborough, expired on the 30th June 2010. GPNL is still continuing
its discussions with TCC and the Company remains hopeful that a development path
can be identified and pursued.
· September 2010
Mr Clive Palmer was appointed as Non Executive Director on 13 September 2010.
DEVELOPMENTS DURING THE YEAR
During the year, GPNL has continued to maintain a strong and lasting business
relationship with our partners Société Minière Georges Montagnat ("SMGM") and
other participants in the nickel industry in New Caledonia. These partners have
the potential to provide a solid platform for growth in nickel resources
available to the GNP. The agreement with SMGM is conditional upon GPNL securing
funding for the GNP. The dates associated with funding have been extended by
mutual agreement between the parties to 30th December 2011, with GPNL having an
option to extend this date upon payment of US$1,000,000 to 30th December 2012.
The Company announced on the 17 September 2007 the signing of land agreements
with the Queensland State Government in relation to the proposed refinery site
and residue storage area in the Gladstone. These agreements are conditional on
securing sufficient financing to fund the development of the GNP. The
requirement to satisfy this condition has been extended to 6 March 2012 by
mutual agreement between GPNL and the Queensland State government.
The Environmental Impact Statement (EIS) in relation to the Project approved by
the Queensland State Government and the Commonwealth Government for construction
and operation of Stages 1 and 2 of the Project remains current. The EIS
continues to be a critical foundation in the development of the GNP.
The Company has maintained its Marlborough resources and reserves during the
period and holds valid Mining Leases and Exploration Permits, along with
associated Environmental Authorities and regional Registered Native Title
agreements. The final necessary Indigenous Land User Agreement was registered 9
December 2009. Traditional owner relationships remain on a sound footing.
FINANCIAL PERFORMANCE
The Company's net loss before income tax was A$2,396,873 (2009: A$98,513,230)
which includes an impairment loss reversal of A$1,825,204 (2009: impairment loss
of A$96,015,663). The Company decreased general expenditure (excluding foreign
exchange, impairment reversal and tenement expenses) in the year from
A$7,328,826 in 2009 to A$3,276,219. The decreases in expenditure reflect the
significant reductions in Director Fees, senior management salaries,
professional fees and travel costs, reflecting the limited project based
activity during the period.
Based on movements in exchange rates affecting loan balances with the Ouinne
Joint Venture , exchange losses of A$345,608 (2009: exchange gain of
A$3,466,424) were recorded.
Interest income for the period was A$697,379 (2009: A$1,369,181).
Tenement Expenditure of A$1,305,504 (2009: nil) reflects ongoing native title
and tenement maintenance costs for the Marlborough Tenements. In prior periods,
tenement expenditure has been capitalised to the Deferred Evaluation and
Exploration Expenditure asset. During the period, minimal project based
activity has taken place; therefore ongoing costs of maintaining the GNP and the
Marlborough Tenements are expensed as incurred.
The net loss before income tax includes an impairment loss reversal of
A$1,825,204 (2009: impairment loss of A$96,015,663). The carrying value of the
Deferred Evaluation and Exploration Expenditure asset at 30 June 2010 after
impairment adjustment is $A20,048,114 (2009: $18,222,910 ) and reflects the
historical cost of the asset. This value does not incorporate the value of the
extensive feasibility studies, environmental impact studies and development
approvals which have been undertaken to facilitate project financing and
development. This approach is consistent with the valuation methodology applied
in 2009, having regard to the applicable accounting standards. The Company, in
assessing the Deferred Evaluation and Exploration Expenditure asset for
impairment, has taken into consideration the Independent Expert Report which was
included in the GPNL Target Statement in response to QNI's Takeover offer.
The Company continues to have a strong cash balance with A$9,362,976 (2009:
A$13,566,123) on hand at the end of the period.
The Board and senior management would like to acknowledge the strong and
continued support from all the stakeholders associated with the Company. The
Board would also like to thank our shareholders for their continued support
during the year.
ENDS
For more information or comment
Julien McInally - Gladstone Pacific Nickel Ltd
Tel:+61(0)7 3231 7100
Email: info@gladstonepacific.com.au
Statement of Comprehensive Income
for the year ended 30 June 2010
+------------------------------------------------+-------+-------------+--------------+
| | | Consolidated |
+------------------------------------------------+-------+----------------------------+
| |Notes | June | June |
| | | 10 | 09 |
| | | ($A) | ($A) |
+------------------------------------------------+-------+-------------+--------------+
| Interest Income | 5(b) | 697,379 | 1,369,181 |
+------------------------------------------------+-------+-------------+--------------+
| Foreign Exchange Gain | 5 | - | 3,466,424 |
| | (a) | | |
+------------------------------------------------+-------+-------------+--------------+
| Other Income | 5(b) | 7,875 | - |
+------------------------------------------------+-------+-------------+--------------+
| REVENUES FROM CONTINUING OPERATIONS | | 705,254 | 4,835,605 |
+------------------------------------------------+-------+-------------+--------------+
| Impairment Loss/ Reversal | 11/12 | (1,825,204) | 96,015,663 |
+------------------------------------------------+-------+-------------+--------------+
| Tenement Expenses | | 1,305,504 | - |
+------------------------------------------------+-------+-------------+--------------+
| Evaluation Costs | | 413,108 | 1,696,911 |
+------------------------------------------------+-------+-------------+--------------+
| China Representative | | - | 187,788 |
+------------------------------------------------+-------+-------------+--------------+
| Foreign Exchange Loss | 5(a) | 345,608 | 4,346 |
+------------------------------------------------+-------+-------------+--------------+
| Directors' Fees / Remuneration | 18 | 571,030 | 665,389 |
+------------------------------------------------+-------+-------------+--------------+
| Directors' Option Expense | 19(a) | 81,065 | 52,583 |
+------------------------------------------------+-------+-------------+--------------+
| Brokers' Option Expense | 19(a) | 42,250 | 42,350 |
+------------------------------------------------+-------+-------------+--------------+
| Professional Fees | | 330,213 | 1,668,934 |
+------------------------------------------------+-------+-------------+--------------+
| Travel and Accommodation | | 106,624 | 398,830 |
+------------------------------------------------+-------+-------------+--------------+
| Wages and On-costs | 5(d) | 484,040 | 974,640 |
+------------------------------------------------+-------+-------------+--------------+
| Office Rental | 5 | 559,703 | 434,846 |
| | (c) | | |
+------------------------------------------------+-------+-------------+--------------+
| Public Relations and Ongoing Listing Fees | | 135,313 | 398,467 |
+------------------------------------------------+-------+-------------+--------------+
| IT and Communication | | 110,083 | 201,530 |
+------------------------------------------------+-------+-------------+--------------+
| Marketing | | - | 18,231 |
+------------------------------------------------+-------+-------------+--------------+
| Depreciation | 5 | 173,729 | 167,172 |
| | (a) | | |
+------------------------------------------------+-------+-------------+--------------+
| Other | 5(e) | 269,061 | 421,155 |
+------------------------------------------------+-------+-------------+--------------+
| EXPENSES | | 3,102,127 | 103,348,835 |
+------------------------------------------------+-------+-------------+--------------+
| | | | |
+------------------------------------------------+-------+-------------+--------------+
| PROFIT / (LOSS) BEFORE INCOME TAX EXPENSE | | (2,396,873) | (98,513,230) |
+------------------------------------------------+-------+-------------+--------------+
| | | | |
+------------------------------------------------+-------+-------------+--------------+
| INCOME TAX (EXPENSE) / BENEFIT | 6 | 333,460 | 2,429,251 |
+------------------------------------------------+-------+-------------+--------------+
| | | | |
+------------------------------------------------+-------+-------------+--------------+
| PROFIT / (LOSS) AFTER INCOME TAX EXPENSE | | (2,063,413) | (96,083,979) |
+------------------------------------------------+-------+-------------+--------------+
| OTHER COMPREHENSIVE INCOME | | | |
+------------------------------------------------+-------+-------------+--------------+
| Foreign Currency Translation | | (17,048) | (26,008) |
+------------------------------------------------+-------+-------------+--------------+
| TOTAL COMPREHENSIVE INCOME | | (2,080,461) | (96,109,987) |
+------------------------------------------------+-------+-------------+--------------+
| EARNINGS PER SHARE | | | |
+------------------------------------------------+-------+-------------+--------------+
| Basic Earnings (Loss) per Share (Cents per | 24 | (2.90) | (150.00) |
| Share) | | | |
+------------------------------------------------+-------+-------------+--------------+
Statement of Financial Position
as at 30 June 2010
+------------------------------------------------+-------+---------------+---------------+
| | | Consolidated |
+------------------------------------------------+-------+-------------------------------+
| | Notes | June | June |
| | | 10 | 09 |
| | | ($A) | ($A) |
+------------------------------------------------+-------+---------------+---------------+
| CURRENT ASSETS | | | |
+------------------------------------------------+-------+---------------+---------------+
| Cash Assets | 7 | 9,362,976 | 13,566,123 |
+------------------------------------------------+-------+---------------+---------------+
| Trade and Other Receivables | 8 | 4,283 | 93,607 |
+------------------------------------------------+-------+---------------+---------------+
| Other Current Assets | 9 | 70,524 | 102,106 |
+------------------------------------------------+-------+---------------+---------------+
| TOTAL CURRENT ASSETS | | 9,437,783 | 13,761,836 |
+------------------------------------------------+-------+---------------+---------------+
| NON CURRENT ASSETS | | | |
+------------------------------------------------+-------+---------------+---------------+
| Property Plant and Equipment | 10 | 843,076 | 852,596 |
+------------------------------------------------+-------+---------------+---------------+
| Investment in Joint Venture | 14 | 1,712 | 1,712 |
+------------------------------------------------+-------+---------------+---------------+
| Deferred Evaluation and Exploration Costs | 11 | 20,048,114 | 18,222,910 |
+------------------------------------------------+-------+---------------+---------------+
| Trade and Other Receivables | 12 | 1,873,599 | 2,092,547 |
+------------------------------------------------+-------+---------------+---------------+
| Deferred Tax Asset | 6 | - | - |
| | (d) | | |
+------------------------------------------------+-------+---------------+---------------+
| TOTAL NON CURRENT ASSETS | | 22,766,501 | 21,169,765 |
+------------------------------------------------+-------+---------------+---------------+
| TOTAL ASSETS | | 32,204,284 | 34,931,601 |
+------------------------------------------------+-------+---------------+---------------+
| | | | |
+------------------------------------------------+-------+---------------+---------------+
| CURRENT LIABILITIES | | | |
+------------------------------------------------+-------+---------------+---------------+
| Trade and Other Payables | 13 | 238,535 | 811,489 |
+------------------------------------------------+-------+---------------+---------------+
| Provisions | 15 | 107,642 | 136,265 |
+------------------------------------------------+-------+---------------+---------------+
| TOTAL CURRENT LIABILITIES | | 346,177 | 947,754 |
+------------------------------------------------+-------+---------------+---------------+
| NON CURRENT LIABILITIES | | | |
+------------------------------------------------+-------+---------------+---------------+
| Trade and Other Payables | 16 | 621,457 | 725,690 |
+------------------------------------------------+-------+---------------+---------------+
| Deferred Tax Liabilities | 6 | - | - |
| | (d) | | |
+------------------------------------------------+-------+---------------+---------------+
| Provisions | 15 | 114,860 | 132,096 |
+------------------------------------------------+-------+---------------+---------------+
| TOTAL NON CURRENT LIABILITIES | | 736,317 | 857,786 |
+------------------------------------------------+-------+---------------+---------------+
| TOTAL LIABILITIES | | 1,082,494 | 1,805,540 |
+------------------------------------------------+-------+---------------+---------------+
| | | | |
+------------------------------------------------+-------+---------------+---------------+
| NET ASSETS | | 31,121,790 | 33,126,061 |
+------------------------------------------------+-------+---------------+---------------+
| | | | |
+------------------------------------------------+-------+---------------+---------------+
| EQUITY | | | |
+------------------------------------------------+-------+---------------+---------------+
| Contributed Equity | 23 | 127,456,754 | 127,456,754 |
+------------------------------------------------+-------+---------------+---------------+
| Reserves | 23 | 13,582,069 | 13,522,927 |
+------------------------------------------------+-------+---------------+---------------+
| Retained Earnings / (Accumulated Losses) | | (109,938,033) | (107,874,620) |
+------------------------------------------------+-------+---------------+---------------+
| Parent Interest | | 31,100,790 | 33,105,061 |
+------------------------------------------------+-------+---------------+---------------+
| Non Controlling Interest | | 21,000 | 21,000 |
+------------------------------------------------+-------+---------------+---------------+
| TOTAL EQUITY | | 31,121,790 | 33,126,061 |
+------------------------------------------------+-------+---------------+---------------+
Cash Flow Statement
for the year ended 30 June 2010
+------------------------------------------------+-------+------------------+---------------+
| | | Consolidated |
+------------------------------------------------+-------+----------------------------------+
| | Notes | June | June |
| | | 10 | 09 |
| | | ($A) | ($A) |
+------------------------------------------------+-------+------------------+---------------+
| CASH FLOWS FROM OPERATING ACTIVITIES | | | |
+------------------------------------------------+-------+------------------+---------------+
| Payments to Suppliers and Employees | | (4,779,838) | (8,328,342) |
+------------------------------------------------+-------+------------------+---------------+
| Payments for Exploration and Evaluation | | - | (3,146,455) |
+------------------------------------------------+-------+------------------+---------------+
| Research and Development Rebate | | 333,460 | - |
+------------------------------------------------+-------+------------------+---------------+
| Interest Received | | 494,107 | 900,993 |
+------------------------------------------------+-------+------------------+---------------+
| NET CASH FLOWS FROM (USED) IN OPERATING | 25 | (3,952,271) | (10,573,804) |
| ACTIVITIES | | | |
+------------------------------------------------+-------+------------------+---------------+
| | | | |
+------------------------------------------------+-------+------------------+---------------+
| CASH FLOWS FROM INVESTING ACTIVITIES | | | |
+------------------------------------------------+-------+------------------+---------------+
| Purchase of property plant and equipment | | (268,150) | (217,301) |
+------------------------------------------------+-------+------------------+---------------+
| Deposit for land purchase | | - | - |
+------------------------------------------------+-------+------------------+---------------+
| Advances to Joint Venture | | (176,560) | (1,730,598) |
+------------------------------------------------+-------+------------------+---------------+
| Increase (decrease) in other non current | | 193,834 | - |
| receivables | | | |
+------------------------------------------------+-------+------------------+---------------+
| NET CASH FLOWS (USED) FROM INVESTING | | (250,876) | (1,947,899) |
| ACTIVITIES | | | |
+------------------------------------------------+-------+------------------+---------------+
| | | | |
+------------------------------------------------+-------+------------------+---------------+
| Net Increase / (Decrease) in Cash Held | | (4,203,147) | (12,521,703) |
+------------------------------------------------+-------+------------------+---------------+
| Net Foreign Exchange Differences | | - | 2,352,318 |
+------------------------------------------------+-------+------------------+---------------+
| Opening Cash Brought Forward | | 13,566,123 | 23,735,508 |
+------------------------------------------------+-------+------------------+---------------+
| CLOSING CASH CARRIED FORWARD | 7 | 9,362,976 | 13,566,123 |
+------------------------------------------------+-------+------------------+---------------+
Statement of Changes in Equity
for the year ended 30 June 2010
+-------------------+-------+-------------+----------+---------------+--------------+--------------+--------------+
| Consolidated |Notes | Issued | Special | Accumulated | Other | Non | Total |
| | | Capital |Warrants | Losses | Reserves | Controlling | Equity |
| | | | | | | Interest | |
+-------------------+-------+-------------+----------+---------------+--------------+--------------+--------------+
| AS AT 1 JULY 2008 | | 84,259,743 | - | (11,790,641) | 36,012,711 | 31,420,614 | 139,902,427 |
+-------------------+-------+-------------+----------+---------------+--------------+--------------+--------------+
| Profit (Loss ) | | - | - | (96,083,979) | | | (96,083,979) |
| for the period | | | | | | | |
+-------------------+-------+-------------+----------+---------------+--------------+--------------+--------------+
| Other | | | | | (26,008) | - | (26,008) |
| Comprehensive | | | | | | | |
| Income | | | | | | | |
+-------------------+-------+-------------+----------+---------------+--------------+--------------+--------------+
| Total | | | | (96,083,979) | (26,008) | | (96,109,987) |
| Comprehensive | | | | | | | |
| Income | | | | | | | |
+-------------------+-------+-------------+----------+---------------+--------------+--------------+--------------+
| Ordinary Shares | 23(c) | 43,197,011 | - | - | - | - | 43,197,011 |
| Issued During the | | | | | | | |
| Year | | | | | | | |
+-------------------+-------+-------------+----------+---------------+--------------+--------------+--------------+
| Non Controlling | 23 | - | - | - | (58,049) | (1,054) | (59,103) |
| Interest prior to | (e) | | | | | | |
| Purchase | | | | | | | |
+-------------------+-------+-------------+----------+---------------+--------------+--------------+--------------+
| Share Based | 23 | - | - | - | 91,603 | - | 91,603 |
| Payment - | (e) | | | | | | |
| Employees and | | | | | | | |
| Directors' | | | | | | | |
| Options | | | | | | | |
+-------------------+-------+-------------+----------+---------------+--------------+--------------+--------------+
| Share Based | 23 | - | - | - | (10,698,879) | - | (10,698,879) |
| Payment - | (e) | | | | | | |
| Director | | | | | | | |
+-------------------+-------+-------------+----------+---------------+--------------+--------------+--------------+
| Purchase of | 23 | - | - | - | (11,798,451) | (31,398,560) | (43,197,011) |
| Egidia Pty Ltd | (e) | | | | | | |
+-------------------+-------+-------------+----------+---------------+--------------+--------------+--------------+
| AS AT 30 JUNE | | 127,456,754 | - |(107,874,620) | 13,522,927 | 21,000 | 33,126,061 |
| 2009 | | | | | | | |
+-------------------+-------+-------------+----------+---------------+--------------+--------------+--------------+
+--------------------+-----+-------+-------+---------------+------------+------+-------------+
| Profit (Loss) for | | - | - | (2,063,413) | - | - | (2,063,413) |
| the period | | | | | | | |
+--------------------+-----+-------+-------+---------------+------------+------+-------------+
| Other | 23 | - | - | - | (17,048) | - | (17,048) |
| Comprehensive | (e) | | | | | | |
| Income | | | | | | | |
+--------------------+-----+-------+-------+---------------+------------+------+-------------+
+-------------------+-----+---------------+-------+-----------------+--------------+----------+------------+
| Share Based | 23 | - | - | - | 76,190 | - | 76,190 |
| Payment - | (e) | | | | | | |
| Employees and | | | | | | | |
| Directors' | | | | | | | |
| Options | | | | | | | |
+-------------------+-----+---------------+-------+-----------------+--------------+----------+------------+
| AS AT 30 JUNE | | 127,456,754 | - |(109,938,033) | 13,582,069 | 21,000 | 31,121,790 |
| 2010 | | | | | | | |
+-------------------+-----+---------------+-------+-----------------+--------------+----------+------------+
Notes to the Financial Statements (extracts)
for the year ended 30 June 2010
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(a) Basis of Preparation
The financial statements are general purpose financial statements, which have
been prepared in accordance with the requirements of the Corporation Act 2001
and Australian Accounting Standards.
The financial statements have been prepared in accordance with the historical
cost convention. The financial statements are presented in Australian dollars.
The accounts have been prepared using the going concern assumption. This
assumes that the Group will be able to settle all debts as and when they fall
due in the ordinary course of business. Management and the directors monitor
the forecast cash flows to ensure that sufficient funds exists to cover
overheads, retain title to mineral properties and to progress the project.
(b) Statement of Compliance
The financial report complies with Australian Accounting Standards as issued by
the Australian Accounting Standards Board and International Financial Reporting
Standards (IFRS) as issued by the International Accounting Standards Board.
Notes to the Financial Statements (extracts)
for the year ended 30 June 2010
+--------------------------------------------------------+------------+--------------+
| | Consolidated |
+--------------------------------------------------------+---------------------------+
| | June 10 | June |
| | ($A) | 09 |
| | | ($A) |
+--------------------------------------------------------+------------+--------------+
| 1. 11.DEFERRED EVALUATION AND EXPLORATION | | |
| | | |
+--------------------------------------------------------+------------+--------------+
| Opening balance | 18,222,910 | 111,984,745 |
+--------------------------------------------------------+------------+--------------+
| Foreign Currency Translation | - | 127,053 |
+--------------------------------------------------------+------------+--------------+
| Additions | - | 3,177,466 |
+--------------------------------------------------------+------------+--------------+
| Reversal of Share Based Payment (i) | - | (10,698,879) |
+--------------------------------------------------------+------------+--------------+
| Impairment (ii) | 1,825,204 | (86,367,475) |
+--------------------------------------------------------+------------+--------------+
| | 20,048,114 | 18,222,910 |
+--------------------------------------------------------+------------+--------------+
Exploration and Evaluation expenditure incurred by the Group is accumulated for
each area of interest. This expenditure is carried at cost and is comprised of
direct costs and an appropriate directly attributable portion of related salary
and contractor costs and overhead costs.
When production commences, the accumulated costs for the relevant area of
interest are amortised over the life of the area on a production output basis.
The amount will be recovered through successful development or sale.
(i) Share Based Payments associated with progressing the evaluation of
the Marlborough Nickel Project:
On 7 December 2007, MNPL entered into Share Subscription Agreements with Dasines
Pty Ltd. An amendment to the milestones in the Dasines Share subscription
agreement was approved on 14 August 2008. Under the subscription agreements,
shares issued to Dasines would convert to ordinary shares in MNPL on the
achievement of certain milestones. The milestones were:
1. Execution of a binding agreement for the turnkey construction of the
Gladstone Nickel Project; and
2. Execution of a binding agreement for the financing of or assistance
with the financing of the Gladstone Nickel Project or
3. The Company entering a Scheme of Arrangement with Resource
Developments International Limited ("RDI").
The Scheme of Arrangement with RDI was not completed by 31 March 2009, and
Milestone 3 was not achieved. The Memorandum of Understanding ("MOU") with MCC
lapsed on 30 June 2009. As a result, it is not probable that Milestone 1 and 2
will be achieved. Based on this, the portion of the Dasines Share based payment
previously capitalised to Deferred Evaluation and Exploration has been reversed.
(ii) Impairment:
Exploration and Evaluation expenditure incurred by the Group is accumulated for
each area of interest. This expenditure is carried at cost and is comprised of
direct costs and an appropriate directly attributable portion of related salary
and contractor costs and overhead costs.
When production commences, the accumulated costs for the relevant area of
interest are amortised over the life of the area on a production output basis.
The amount will be recovered through successful development or sale.
The Group determines whether Deferred Evaluation and Exploration Costs are
impaired at least on a bi-annual basis.
In assessing whether impairment is required to the carrying value of an asset,
its carrying value is compared with its recoverable amount. The recoverable
amount is the higher of the asset's fair value less costs to sell and value in
use. Given the nature of the Group's activities, the "fair value less costs to
sell' approach has been used in assessing the impairment charges. Where the
recoverable amount is greater than the historical cost of the asset, the
historical cost is recorded.
Based on a valuation included in the Target Statement completed in response to
QNI Takeover proposal, the Company has concluded that the recoverable amount of
this asset is greater than the carrying amount as at 30 June, 2010. The carrying
amount of the asset is $20,048,114 (2009: $18,222,910). An impairment reversal
has been made, whereby the carrying amount of the asset at the end of the period
is equivalent to the historical cost of the asset. The impairment reversal of
$1,825,204 has been made in the Statement of Comprehensive Income.
The 2009 impairment charge includes the full impairment of the Deferred
Evaluation and Exploration asset associated with the Ouinne SAS Joint Venture.
As part of the Joint venture agreement, GPNL was to provide financing for the
GNP. As funding of the GNP is uncertain, the Group has assessed that this asset
remains fully impaired as at 30 June 2010.
Notes to the Financial Statements (extracts)
for the year ended 30 June 2010
+--------------------------------------------------------+-------------+-------------+
| | Consolidated |
+--------------------------------------------------------+---------------------------+
| | June | June |
| | 10 | 09 |
| | ($A) | ($A) |
+--------------------------------------------------------+-------------+-------------+
| 12. TRADE AND OTHER RECEIVABLES (NON-CURRENT) | | |
| | | |
+--------------------------------------------------------+-------------+-------------+
| Security Deposits - Bank Guarantees | 158,972 | 352,807 |
+--------------------------------------------------------+-------------+-------------+
| Amounts Receivable from Ouinne SAS to parent (a) | 7,499,154 | 7,688,918 |
+--------------------------------------------------------+-------------+-------------+
| Impairment of Receivable from Ouinne SAS to parent | (7,499,154) | (7,688,918) |
| (c) | | |
+--------------------------------------------------------+-------------+-------------+
| Amounts Receivable from Ouinne SAS to subsidiary (b) | 1,717,470 | 1,918,020 |
+--------------------------------------------------------+-------------+-------------+
| Impairment of Receivable from Ouinne SAS to subsidiary | (1,717,470) | (1,918,020) |
| (c) | | |
+--------------------------------------------------------+-------------+-------------+
| Others | 30,137 | 55,250 |
+--------------------------------------------------------+-------------+-------------+
| Deposits - Land (Note17 (f)) | 1,684,490 | 1,684,490 |
+--------------------------------------------------------+-------------+-------------+
| | 1,873,599 | 2,092,547 |
+--------------------------------------------------------+-------------+-------------+
(a) This amount forms part of the arrangements to earn an interest in
Ouinne SAS. (refer also Note 17 (f))
(b) This amount is interest bearing and represents advances made for the
payment of exploration and evaluation activities in New Caledonia. The loans
will be repaid by way of reduction in the Groups' purchase price of materials
from Ouinne SAS.
(c) As part of the Joint venture agreement, with SMGM, GPNL was to provide
financing for the GNP. As the agreement for funding of the GNP did not proceed,
the group assessed that all receivables from Ouinné SAS are subject to
impairment. The recoverable amount of the receivable has been assessed as zero.
An impairment expense has been included in the Statement of Comprehensive
Income.
Notes to the Financial Statements (extracts)
for the year ended 30 June 2010
24. EARNINGS PER SHARE
+---------------------------------------------------------+-------------+--------------+
| | Consolidated |
+---------------------------------------------------------+----------------------------+
| | June | June |
| | 10 | 09 |
| | ($A) | ($A) |
+---------------------------------------------------------+-------------+--------------+
| | | |
+---------------------------------------------------------+-------------+--------------+
| Net Profit (Loss) | (2,063,413) | (96,083,979) |
+---------------------------------------------------------+-------------+--------------+
| Earnings used in Calculation of Basic Earnings per | (2,063,413) | (96,083,979) |
| Share | | |
+---------------------------------------------------------+-------------+--------------+
| | | |
+---------------------------------------------------------+-------------+--------------+
| Weighted Average Number of Ordinary Shares on Issue | 70,935,699 | 63,970,835 |
| Used in the Calculation of Basic Earnings per Share | | |
+---------------------------------------------------------+-------------+--------------+
| | | |
+---------------------------------------------------------+-------------+--------------+
| Basic Earnings per Share | (0.03) | (1.50) |
+---------------------------------------------------------+-------------+--------------+
| | | |
+---------------------------------------------------------+-------------+--------------+
Options on issue are not considered dilutive.
Notes to the Financial Statements (extracts)
for the year ended 30 June 2010
25. CASH FLOW STATEMENT RECONCILIATION
+--------------------------------------------------------+-------------+--------------+
| | Consolidated |
+--------------------------------------------------------+----------------------------+
| | June | June |
| | 10 | 09 |
| | ($A) | (A$) |
+--------------------------------------------------------+-------------+--------------+
| | | |
+--------------------------------------------------------+-------------+--------------+
| Operating Profit/(Loss) After Tax | (2,063,413) | (96,083,979) |
+--------------------------------------------------------+-------------+--------------+
| | | |
+--------------------------------------------------------+-------------+--------------+
| Adjusted for : | | |
+--------------------------------------------------------+-------------+--------------+
| Interest | (173,147) | (218,333) |
+--------------------------------------------------------+-------------+--------------+
| Share based Payments | 76,190 | - |
+--------------------------------------------------------+-------------+--------------+
| Provision for Employee Entitlements | 59,727 | 10,618 |
+--------------------------------------------------------+-------------+--------------+
| (Gain)/ Loss on Foreign Exchange | 345,608 | (3,462,078) |
+--------------------------------------------------------+-------------+--------------+
| Impairment Loss Reversal | (1,825,204) | 96,015,663 |
+--------------------------------------------------------+-------------+--------------+
| Depreciation- Charged to Operations | 173,729 | 167,172 |
+--------------------------------------------------------+-------------+--------------+
| Loss on Disposal of Fixed Assets | 89,185 | - |
+--------------------------------------------------------+-------------+--------------+
| Movement in Shares Based Payments and other reserves. | 81,706 | (6,491) |
+--------------------------------------------------------+-------------+--------------+
| | | |
+--------------------------------------------------------+-------------+--------------+
| Changes in Assets and Liabilities: | | |
+--------------------------------------------------------+-------------+--------------+
| (Increase)/Decrease in Receivables | 133,523 | 91,398 |
+--------------------------------------------------------+-------------+--------------+
| (Increase)/Decrease in Deferred Evaluation Costs | - | (3,146,455) |
+--------------------------------------------------------+-------------+--------------+
| (Increase)/Decrease in Prepayments and other Assets | 206,331 | 8,333 |
+--------------------------------------------------------+-------------+--------------+
| (Increase)/Decrease in Deferred Tax Asset/ Liability | (333,460) | (2,429,253) |
+--------------------------------------------------------+-------------+--------------+
| Increase/(Decrease) in Payables | (601,577) | (1,369,655) |
+--------------------------------------------------------+-------------+--------------+
| Increase/(Decrease) in Non-Current Payables | (104,233) | (86,414) |
+--------------------------------------------------------+-------------+--------------+
| Increase/(Decrease) in Non-Current Provisions | (17,236) | (64,330) |
+--------------------------------------------------------+-------------+--------------+
| Net Cash Flow Used from Operating Activities | (3,952,271) | (10,573,804) |
+--------------------------------------------------------+-------------+--------------+
| | | |
+--------------------------------------------------------+-------------+--------------+
| Reconciliation of Cash: | | |
+--------------------------------------------------------+-------------+--------------+
| Cash Balance Comprises | | |
+--------------------------------------------------------+-------------+--------------+
| Cash at Bank and on Short Term Deposit | 9,362,976 | 13,566,123 |
+--------------------------------------------------------+-------------+--------------+
| Closing Cash Balance | 9,362,976 | 13,566,123 |
+--------------------------------------------------------+-------------+--------------+
(a) Non cash financing and investments activities
+--------------------------------------------------------+---------+--------------+
| Ordinary Shares Issued | - | 43,197,011 |
+--------------------------------------------------------+---------+--------------+
| Reversal of Share Based Payments | - | (10,698,879) |
+--------------------------------------------------------+---------+--------------+
Notes to the Financial Statements (extracts)
for the year ended 30 June 2010
26. EVENTS AFTER BALANCE DATE
Expiration of Memorandum of Understanding with TCC:
The Memorandum of Understanding with China Tianchen Engineering Corporation
("TCC") for development of a heap leach project at Marlborough expired on the
30th June 2010. The Group is continuing its discussions with TCC with the
objective that a development path can be identified and pursued.
Takeover Offer from QNI Resources Pty Ltd
The Company received a takeover offer on 12 August 2010 from QNI (a company
ultimately owned by Mr Clive Palmer) for GBP0.14 per ordinary share for shares
it did not own in the Company.
The Bidder's Statement was received by the Company on 21 September 2010 and has
been distributed to Shareholders.
The Company has concluded a Target's Statement in which the Independent
Director, Mr Martino, has advised shareholders of his opinion in relation to the
takeover offer by QNI. The Target's Statement was distributed to shareholders
on 6 October 2010.
In addition the Company issued a Supplementary Target's Statement dated 12
October 2010 which is to be read in conjunction with the Target's Statement
dated 5 October 2010.
The offer closed on 25 October 2010.
On 25 October 2010, an application was made to the Takeovers Panel in Australia
by RAB Special Situations (Master) Fund Limited (a shareholder of the Company)
alleging that unacceptable circumstances had arisen in relation to the takeover
offer for GPNL by QNI in respect of alleged deficiencies in the Company's
Target's Statement, and sought orders that a further supplementary Target's
Statement be issued and accepting shareholders be given a right to withdraw
their acceptances. The Takeovers Panel made an interim order to the effect of
preventing QNI from processing acceptances of the offer or paying consideration
until further order or the matter being determined. At the date of this report,
the Takeovers Panel had yet to decide to conduct proceedings in relation to the
matter.
Resignation of Nominated Advisor and Broker
On 21 October the Company's' Nominated Adviser for the purposes of the AIM Rules
for Companies resigned. The Company's shares will be temporarily suspended from
trading on AIM until such time as a replacement Nominated Adviser is appointed.
If by 19 November 2010, the Company has failed to appoint a replacement
Nominated Adviser, the admission of the Company's shares to trading on AIM will
be cancelled. On 25 October, the Company's Broker resigned. The board is
reviewing its position in relation to the appointment of the Nominated Advisor
and Broker.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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