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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Natasa Min | LSE:NSN | London | Ordinary Share | KYG6395A1004 | ORD NPV (DI) |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 31.75 | 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
TIDMNSN
RNS Number : 2363I
Natasa Mining Limited
28 May 2014
NATASA MINING LTD
("Natasa" or the "Company")
Final Results for the year ended 31 December 2013
The Directors present the results of the Natasa Mining Ltd consolidated entity, being the Company and its subsidiaries ("Group") and the Group's interest in associates, for the year ended 31 December 2013.
REVIEW OF OPERATIONS AND STATE OF AFFAIRS
Fox Creek Coal Project, Canada (direct interest 100%) A Competent Person's Report (prepared in September 2013 by an internationally recognised expert and reported in compliance with Canadian NI 43-101 requirements) showed that the Fox Creek leases contain a measured, indicated and inferred thermal coal resource of 1.4 billion tonnes, of which 1.05 billion tonnes are measured and indicated, as follows:
Hot Features
Premium
Fox Creek Sub-bituminous C
Resources as of 31 July 2013 '000
Tonnes
Measured 431,073
Indicated 622,621
----------
Total Measured and Indicated 1,053,694
----------
Inferred 503,269
During the year, licence fees amounting to $0.1 million and third-party costs amounting to $0.1 million have been capitalised to the intangible asset.
PNG Petroleum Project, Papua New Guinea (indirect interest 12.4%) UMC Energy Corporation (formerly UMC Energy plc) (UMC Energy), in which the Group holds a 41.34% equity interest, redomiciled from the United Kingdom to the Cayman Islands following shareholders' approval on 29 August 2013 and Court confirmation on 18 September 2013. UMC Energy holds a 30% equity interest in the PNG Energy Group, with CNOOC, the Chinese State Owned Enterprise, holding the remaining 70% equity interest. The PNG Energy Group holds two onshore (PPL378 and PPL405) and two offshore (PPL374 and PPL375) Petroleum Prospecting Licences (PPL) in Papua New Guinea. All exploration costs are funded by CNOOC by way of a non-recourse loan to the PNG Energy Group.
During the year, UMC Energy engaged 3D-GEO Pty Limited ("3D-GEO"), a Melbourne based firm of consulting petroleum geologists and engineers, experienced with regard to Papua New Guinea petroleum structural and geological interpretation, to review all available geological data, identify leads and prospects and quantify contingent resources and prospective resources in the licences.
The review incorporated additional historical geological, well and seismic data to that included in previous reviews and encompassed new seismic interpretation and mapping. The review of all four permits was published as a "Competent Person's Report" ("CPR"). The CPR was made publicly available on 5 August 2013.
Of particular note are the reported findings in relation to the Paua structure partly contained within PPL 378, as follows:
The Paua-1x well was drilled in 1996 by BP and is a declared discovery with oil recovered to surface from sands in the Iagifu Formation. The Paua Anticline is part of a major NW-SE fold trend bound to the south-west by a major thrust fault. The structure extends some 12km along strike with up to 450m of vertical closure. It extends outside PPL 378 West into adjacent acreage to the northwest and southeast. Independent expert assessment of the data has provided the following contingent resource values for potential oil and gas recoverable from the Iagifu sandstones within the PPL 378 West portion of the Paua Anticline, prepared in accordance with the definitions and guidelines set out in the Petroleum Resources Management System ("PRMS"):
All values GROSS CONTINGENT RESOURCES NET ATTRIBUTABLE CONTINGENT Chance in MMbbls* WITHIN PPL378 West: Paua RESOURCES TO UMC ENERGY: of Success or Bcf* Iagifu Sands Paua Iagifu Sands (%) -------------- ------------------------------------------- ------------------------------------------- ------------ PPL 378 W Low Estimate Best High Low Estimate Best High Operator: 1C Estimate Estimate 1C Estimate Estimate CNOOC 2C 3C 2C 3C -------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------ Oil Contingent Resource 7.6 25 73 2.3 7.4 39 55 -------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------ Gas Contingent Resource 264 130 56 79 39 17 55 -------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------
*Note: MMbbls = million barrels of recoverable oil, Bcf = billion standard cubic feet of recoverable gas
PPL 378 contains a single oil discovery well, Paua-1x, which proved the presence of hydrocarbons in the Iagifu Sandstone, in a relatively low structural position on the Paua anticline. 3D-GEO has assigned Contingent Resources for the hydrocarbons found in the Iagifu, although there is a large element of uncertainty as to the relative proportions of oil versus gas in the accumulation. 3D-GEO has assigned Low, Best and High Estimate resource estimates for the oil volumes, with corresponding gas volumes representing the balance of the accumulation updip from the well in each case - resulting in a high gas volume estimate associated with a Low Estimate oil contingent resource, or a low gas volume estimate associated with a High Estimate oil contingent resource (see above).
Recoverable Prospective Resources were also calculated for Toro and Digimu reservoirs within the Paua structure. The Toro C horizon was intersected at a drillers depth of 2845mKB (-1250mSS). A gas only case was conducted for this reservoir using gross rock volumes above the well intersection. Probabilistic calculations were also conducted for the Digimu Sandstone with oil-water contacts above the existing well penetration for alternative oil and gas cases. The following table summarises the Paua Anticline recoverable Prospective Resource estimates within PPL 378 West, for the potential Toro and Digimu reservoirs over and above the Paua Contingent Resource estimates for the Iagifu reservoir.
All values GROSS PROSPECTIVE RESOURCES NET ATTRIBUTABLE PROSPECTIVE Chance in MMbbls* WITHIN PAUA PPL378 West RESOURCES TO UMC ENERGY of Success or Bcf* (%) -------------- ------------------------------------------- ------------------------------------------- ------------ PPL 378 West Low Estimate Best High Low Estimate Best High Operator: P90 Estimate Estimate P90 Estimate Estimate CNOOC P50 P10 P50 P10 -------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------ Oil Prospective Resource: Digimu 2.4 15 128 0.6 4.7 38.4 55 -------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------ Total Oil 2.4 15 128 0.6 4.7 38.4 -------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------ Gas Prospective Resource: Toro 140 249 427 42.0 74.7 128.1 55 -------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------ Gas Prospective Resource: Digimu 9.3 73.9 607 2.8 22.2 182.1 55 -------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------ Total Gas 149.3 322.9 1,034 44.8 96.9 310.2 -------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------
*Note: MMbbls = million barrels of recoverable oil, Bcf = billion standard cubic feet of recoverable gas
Other structures in PPL 378 and in PPL 405 were also appraised for two, mutually exclusive, alternative cases: an oil case (assuming no gas) and a gas case (assuming no oil). The gross prospective resource of oil (P50 Best Estimate) for all structures was assessed at 1,692 MMbbl. The gross prospective gas resource (P50 Best Estimate) for all structures was 3,347 Bcf (3.347 Tcf), as follows:
GROSS PROSPECTIVE RESOURCES NET ATTRIBUTABLE PROSPECTIVE
- OIL RESOURCES TO UMC ENERGY
All values in MMbbls*
--------- ----------- -------------------------------------- ---------------------------------------- ------------
Low Best High Low Best High Chance
Estimate Estimate Estimate Estimate Estimate Estimate of Success
LICENCE LEAD P90 P50 P10 P90 P50 P10 (%)
--------- ----------- ----------- ----------- ------------ ------------ ----------- ------------- ------------
PPL378 Poro
West Prospect 219 511 1141 66 153 342 14
--------- ----------- ----------- ----------- ------------ ------------ ----------- ------------- ------------
PPL378 Lead
East A 19 49 122 6 15 37 5
--------- ----------- ----------- ----------- ------------ ------------ ----------- ------------- ------------
Lead
A' 35 96 252 11 29 76 3
--------------------- ----------- ----------- ------------ ------------ ----------- ------------- ------------
Lead
B 75 240 769 23 72 231 6
--------------------- ----------- ----------- ------------ ------------ ----------- ------------- ------------
Wasuma
Prospect 16 35 74 5 10 22 48
--------------------- ----------- ----------- ------------ ------------ ----------- ------------- ------------
Lead
C 100 372 812 30 112 244 4
--------------------- ----------- ----------- ------------ ------------ ----------- ------------- ------------
Warra
Deep
Lead 60 221 481 18 66 144 8
--------------------- ----------- ----------- ------------ ------------ ----------- ------------- ------------
Lead
PPL405 D 48 168 361 14 50 108 4
--------- ----------- ----------- ----------- ------------ ------------ ----------- ------------- ------------
P50 Total Oil 1,692 508
---------------------- ----------- ----------- ------------ ------------ ----------- ------------- ------------
*Note: MMbbls = million barrels of recoverable oil; assumes all oil with no gas fill in mapped closure
GROSS PROSPECTIVE RESOURCES NET ATTRIBUTABLE PROSPECTIVE
- GAS RESOURCES TO UMC ENERGY
All values in Bcf*
--------- ----------- -------------------------------------- ---------------------------------------- ------------
Low Best High Low Best High Chance
Estimate Estimate Estimate Estimate Estimate Estimate of Success
LICENCE LEAD P90 P50 P10 P90 P50 P10 (%)
--------- ----------- ----------- ----------- ------------ ------------ ----------- ------------- ------------
PPL378 Poro
West Prospect 555 1336 3011 167 401 903 14
--------- ----------- ----------- ----------- ------------ ------------ ----------- ------------- ------------
PPL378 Lead
East A 28 69 163 8 21 49 5
--------- ----------- ----------- ----------- ------------ ------------ ----------- ------------- ------------
Lead
A' 64 168 218 19 50 65 3
--------------------- ----------- ----------- ------------ ------------ ----------- ------------- ------------
Lead
B 109 345 1098 33 104 329 6
--------------------- ----------- ----------- ------------ ------------ ----------- ------------- ------------
Wasuma
Prospect 19 36 64 6 11 19 48
--------------------- ----------- ----------- ------------ ------------ ----------- ------------- ------------
Lead
C 176 657 1464 53 197 439 4
--------------------- ----------- ----------- ------------ ------------ ----------- ------------- ------------
Warra
Deep
Lead 108 393 449 32 118 135 8
--------------------- ----------- ----------- ------------ ------------ ----------- ------------- ------------
Lead
PPL405 D 98 343 734 30 103 220 4
--------- ----------- ----------- ----------- ------------ ------------ ----------- ------------- ------------
P50 Total Gas 3,347 1,005
---------------------- ----------- ----------- ------------ ------------ ----------- ------------- ------------
*Note: Bcf = billion standard cubic feet of recoverable gas; assumes all gas with no oil fill in mapped closure
Eight untested structures were identified in offshore licences PPL 374 and PPL 375. Alternative oil and gas cases gave gross prospective resources for all structures of 5,488 MMbbl oil or 6,673 Bcf (6.673 Tcf) gas, as follows.
GROSS PROSPECTIVE RESOURCES NET ATTRIBUTABLE PROSPECTIVE
- OIL RESOURCES TO UMC ENERGY
All values in MMbbls*
----------- ------- --------------------------------------- ----------------------------------------- ------------
Low Best High Low Best High Chance
Estimate Estimate Estimate Estimate Estimate Estimate of Success
LICENCE LEAD P90 P50 P10 P90 P50 P10 (%)
----------- ------- ------------ ----------- ------------ ------------ ------------ ------------- ------------
Lead
A 450 1284 2909 135 385 873 2
------------------- ------------ ----------- ------------ ------------ ------------ ------------- ------------
Lead
B/B1 787 2089 4468 236 627 1340 2.2
------------------- ------------ ----------- ------------ ------------ ------------ ------------- ------------
Lead
C/C1 47 135 310 14 41 93 0.6
------------------- ------------ ----------- ------------ ------------ ------------ ------------- ------------
Lead
PPL374 D 338 1078 2658 101 323 797 2.8
----------- ------- ------------ ----------- ------------ ------------ ------------ ------------- ------------
Lead
E 70 208 480 21 62 144 1.5
------------------- ------------ ----------- ------------ ------------ ------------ ------------- ------------
Lead
F 127 361 810 38 108 243 1.4
------------------- ------------ ----------- ------------ ------------ ------------ ------------- ------------
Lead
G 52 133 289 16 40 87 2.1
------------------- ------------ ----------- ------------ ------------ ------------ ------------- ------------
Lead
PPL375 H 59 200 473 18 60 142 5
----------- ------- ------------ ----------- ------------ ------------ ------------ ------------- ------------
Grand P50 Total
Oil 5,488 1,646
-------------------- ------------ ----------- ------------ ------------ ------------ ------------- ------------
*Note: MMbbls = million barrels of recoverable oil; assumes all oil with no gas fill in mapped closure
GROSS PROSPECTIVE RESOURCES NET ATTRIBUTABLE PROSPECTIVE
- GAS RESOURCES TO UMC ENERGY
All values in Bcf*
----------- ------- --------------------------------------- ----------------------------------------- ------------
Low Best High Low Best High Chance
Estimate Estimate Estimate Estimate Estimate Estimate of Success
LICENCE LEAD P90 P50 P10 P90 P50 P10 (%)
----------- ------- ------------ ----------- ------------ ------------ ------------ ------------- ------------
Lead
A 559 1522 3286 168 457 986 2
------------------- ------------ ----------- ------------ ------------ ------------ ------------- ------------
Lead
B/B1 1048 2704 5603 314 811 1689 2.2
------------------- ------------ ----------- ------------ ------------ ------------ ------------- ------------
Lead
C/C1 65 180 397 20 54 119 0.6
------------------- ------------ ----------- ------------ ------------ ------------ ------------- ------------
Lead
PPL374 D 399 1189 2762 120 357 829 2.8
----------- ------- ------------ ----------- ------------ ------------ ------------ ------------- ------------
Lead
E 93 227 464 28 68 139 1.5
------------------- ------------ ----------- ------------ ------------ ------------ ------------- ------------
Lead
F 136 339 701 41 102 210 1.4
------------------- ------------ ----------- ------------ ------------ ------------ ------------- ------------
Lead
G 57 144 299 17 43 90 2.1
------------------- ------------ ----------- ------------ ------------ ------------ ------------- ------------
Lead
PPL375 H 97 368 894 29 110 268 5
----------- ------- ------------ ----------- ------------ ------------ ------------ ------------- ------------
Grand P50 Total
Gas 6,673 2,002
-------------------- ------------ ----------- ------------ ------------ ------------ ------------- ------------
*Note: Bcf = billion standard cubic feet of recoverable gas; assumes all gas with no oil fill in mapped closure
During 2013, CNOOC continued its technical work and exploration activities across the four PNG licences. CNOOC completed technical work to meet minimum work obligations in three of the four licenses, PPLs 378, 374 and 375. However, due to delays in collecting critical well and seismic data in PPL 405, the work program in this licence, which required the drilling of one exploration well, was not completed by 8 May 2014, the end of the first two year licence term. A significant amount of existing data had been received late in the year while other important data has not yet been received. This has seriously delayed the technical evaluation of PPL 405 and progress was less than anticipated. It is anticipated that the PNG Government will be approached by CNOOC as the Operator seeking a variation in work program commitments for this licence.
PPL 378 comprises two blocks (East and West) situated onshore in the Papuan fold Belt. The western block is particularly well located with respect to existing oil and gas fields production facilities and infrastructure at Moran. The recently completed pipeline that will transport gas from Hides to ExxonMobil's Port Moresby LNG plant transgresses PPL 378 West.
The licence contains the Paua-1x oil discovery drilled by BP in 1996. Oil was recovered from RFT wireline tests form two sandstone reservoir sequences in the Iagifu Formation. Some 37m of net oil pay is interpreted in 5 layers in separate Upper and Lower Iagifu reservoirs. The Toro Formation is water-bearing although the wireline log evaluation suggests the presence of residual hydrocarbon saturation.
New PSTM and PSDM reprocessing of existing 2D seismic data using new velocity modelling across the Paua and Moran structures was completed during the year. Despite the difficulties in processing seismic in the PNG Highlands, the final results suggest that this modern reprocessing produced cleaner sections with significant reduction in noise and multiples originating from the shallow section.
Initial interpretation and mapping by CNOOC supported by structural balance restoration, indicates significant structural closure up-dip from Paua-1x to the NE. The structural high is co-incident with the surface anticline defined by surface geology and topography. The mapping supports volumetric oil and gas estimates made by 3D-GEO and suggests that Paua is a robust structure of a sufficient size and commercial potential to warrant appraisal drilling.
A preliminary well location on the back-limb of the Paua structure up-dip of Paua-1x has been identified and a preliminary well design has been formulated.
Some 3,015 km of 2D seismic was acquired across PPLs 374 and 375 over 26 days in December 2013 / early January 2014. Seismic data quality was described as very good. Processing of the 2D data is currently underway by CNOOC with interpretation and mapping expected to be completed during 2014.
During the year, the Company advanced $1.6 million to UMC Energy. The funds were used to meet costs associated with UMC Energy's Papua New Guinea petroleum assets, to renew its Madagascan uranium exploration permits and for general working capital. As the time-frame for recovery of the loan funds is not certain, the full amount of funds advanced to UMC Energy has been impaired. In addition, the Group recognised a loss of $1.0 million being its equity accounted share of the loss incurred by UMC Energy over the 2013 financial year.
Over the year, the Group also examined a number of other mineral investment opportunities, but these did not lead to any positive outcome.
Legal fees of $0.1 million and travel expenses of $0.1 million were incurred, principally in relation to investigating and pursuing investment opportunities.
Interest income of $0.2 million and dividend income of $0.6 million was generated.
A foreign exchange loss of $0.2 million was recognised as a result of the weakening of, particularly, the Australian dollar vis-a-vis the United States dollar.
During the 2013 financial year the Group:
-- Purchased $1.2 million of equity instruments. -- Advanced secured loans to other entities of $1.3 million.
-- Generated proceeds of $12.1 million, and recognised a profit of $3.1 million, from the sale of equity instruments.
-- Recovered loans advanced to other entities of $0.8 million.
-- Recognised an increment from the change in fair value of its holding of available for sale financial assets of $0.7 million.
-- Purchased 183,000 of its own shares into Treasury at a cost of $0.2 million. -- Recognised an impairment adjustment of $0.1 million on intangible assets. -- Recognised an impairment adjustment of $2.1 million on available-for-sale financial assets. -- Recognised an impairment adjustment of $0.3 million on advances to other entities.
Other than the matters referred to above, in the opinion of the Directors, there were no significant changes in the state of affairs of the Group that occurred during the financial year under review that are not otherwise disclosed in this report or the consolidated financial statements.
TRADING RESULTS
The loss after income tax of the Group for the year ended 31 December 2013 attributable to equity holders of the Company was $3,194,203 (2012 : $7,126,426).
SUBSEQUENT EVENTS
Between 1 January 2014 and the date of this report the following material transactions have occurred. The Group has:
-- Purchased $0.6 million of equity instruments. -- Recovered $2.1 million of secured loans from other entities. -- Advanced $0.2 million of loan funds to UMC Energy. -- Purchased 1,100,000 of its own shares into Treasury at a cost of $0.7 million.
Other than the matters discussed above, there has not arisen in the interval between the end of the financial year and the date of this report any item, transaction or event of a material and unusual nature likely, in the opinion of the Directors of the Company, to affect significantly the operations of the Group, the results of those operations or the state of affairs of the Group, in subsequent financial years.
LIKELY DEVELOPMENTS
The Group expects to devote attention to continuing to enhance the value of its Fox Creek Coal project and PNG Petroleum project.
A number of mineral operations investment opportunities are being investigated.
Further information about likely developments in the operations of the Group and the expected results of those operations in future financial years has not been included in this report because disclosure of the information would be likely to result in unreasonable prejudice to the Group.
OPTIONS
No options were granted or exercised during the year.
No options were forfeited due to service criteria not being met during the year.
Since the end of the financial year, no shares were issued as a result of the exercise of options.
Unissued shares under option
At the date of this report, unissued ordinary shares of the Company under option are:
Expiry Exercise Number
of
Date price shares
------------ ---------- --------
31/12/2014 GBP2.00 193,735
Dated at Monaco this 28(th) day of May 2014.
Signed in accordance with a resolution of the Directors:
C. Kyriakou
Director
NATASA MINING LTD
CONSOLIDATED INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2013
Consolidated
2013 2012
Note $ $
------------------------------------------------ ----- -------------- --------------
Total revenue from services - -
Gain on sale of equity and debt instruments 2,509,366 1,770,081
Gain on disposal of interest in associate 591,326 -
Financial income 2 809,803 608,193
Personnel expenses 3 (1,114,947) (1,329,679)
Audit fees (66,006) (65,711)
Consultancy fees recovered, net of expenditure - 2,917,212
Depreciation and amortisation (3,560) (5,605)
Finance expenses 2 (18,060) (5,257)
Foreign exchange (loss) / gains (151,724) 104,432
Impairment losses on intangibles 9 (194,816) (185,000)
Impairment losses on investments (2,058,235) (358,185)
Impairment losses on receivables (1,876,887) (6,232,728)
Legal fees (68,999) (463,126)
Travel expenses (141,667) (487,332)
Other expenses (399,332) (570,384)
-------------- --------------
Result from operating activities (2,183,738) (4,303,089)
Share of net result of associates 8 (1,010,465) (2,823,337)
-------------- --------------
Loss before tax (3,194,203) (7,126,426)
Income tax expense 5 - -
Loss for the year (3,194,203) (7,126,426)
-------------- --------------
Attributable to :
Equity holders of the Company (3,194,203) (7,126,426)
-------------- --------------
Loss for the year (3,194,203) (7,126,426)
-------------- --------------
Basic loss per share (cents) 6 (10.9) (24.4)
Diluted loss per share (cents) 6 (10.9) (24.4)
The accompanying notes form part of these consolidated financial statements.
NATASA MINING LTD
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2013
Consolidated
2013 2012
Note $ $
----------------------------------------------- ----- -------------- ----------------
Loss for the year (3,194,203) (7,126,426)
Other comprehensive income:
Net change in fair value of available for
sale financial assets 14 (725,738) 1,713,587
Net change in fair value of available for
sale financial assets reclassified to profit
or loss 14 1,454,367 51,096
Foreign currency movement - equity accounted
investees 14 52,838 930,721
Foreign exchange movement 14 (393,571) 118,443
Other comprehensive income for the year 387,896 2,813,847
Total comprehensive loss for the year 16 (2,806,307) (4,312,579)
-------------- ----------------
Attributable to :
Equity holders of the Company (2,806,307) (4,312,579)
Total comprehensive income / (loss) for the
year (2,806,307) (4,312,579)
-------------- ----------------
The accompanying notes form part of these consolidated financial statements.
NATASA MINING LTD
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
AS AT 31 DECEMBER 2013
Consolidated
2013 2012
Note $ $
------------------------------------------- ----- ------------- -------------
ASSETS
Current Assets
Cash and cash equivalents 20 6,496,447 -
Trade and other receivables 7 2,081,637 2,031,637
Total Current Assets 8,578,084 2,031,637
------------- -------------
Non-Current Assets
Investments in equity accounted investees 8 5,967,536 7,210,284
Exploration and evaluation expenditure
- intangible 9 5,473,086 5,822,066
Other financial assets 10 19,181,666 28,729,602
Plant and equipment 11 5,367 7,122
Total Non-Current Assets 30,627,655 41,769,074
------------- -------------
Total Assets 39,205,739 43,800,711
------------- -------------
LIABILITIES
Current Liabilities
Trade and other payables 12 114,367 1,674,200
Total Current Liabilities 114,367 1,674,200
------------- -------------
Total Liabilities 114,366 1,674,200
------------- -------------
NET ASSETS 39,091,372 42,126,511
------------- -------------
EQUITY
Share capital 13 30,987,107 31,215,939
Reserves 14 4,145,803 3,757,907
Retained earnings 15 3,958,462 7,152,665
------------- -------------
TOTAL EQUITY 16 39,091,372 42,126,511
------------- -------------
The financial statements were approved by the Board on 28 May 2014 and signed on its behalf by:
C. Kyriakou
The accompanying notes form part of these consolidated financial statements.
NATASA MINING LTD
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2013
Consolidated Attributable to equity holders of the Company
2013 Share Foreign
Fair based Currency
Share value payments Translation Retained Total
capital reserve reserve reserve earnings equity
$ $ $ $ $ $
---------------------- --- --------------- ------------ ---------- ------------- -------------- ---------------
Balance at 1 January
2013 31,215,939 2,615,669 57,000 1,085,238 7,152,665 42,126,511
Total comprehensive
income for the period
Loss - - - - (3,194,203) (3,194,203)
Total other comprehensive
income - 728,629 - (340,733) - 387,896
--------------- ------------ ---------- ------------- -------------- ---------------
Total comprehensive
loss for the period - 728,629 - (340,733) (3,194,203) (2,806,307)
--------------- ------------ ---------- ------------- -------------- ---------------
Transactions with
owners,
recorded directly in
equity
Contributions by
owners
Shares purchased into
Treasury (228,832) - - - - (228,832)
--------------- ------------ ---------- ------------- -------------- ---------------
Total contributions
by owners (228,832) - - - - (228,832)
--------------- ------------ ---------- ------------- -------------- ---------------
Total transactions with
owners (228,832) - - - - (228,832)
--------------- ------------ ---------- ------------- -------------- ---------------
Balance at 31 December
2013 30,987,107 3,344,298 57,000 744,505 3,958,462 39,091,372
--------------- ------------ ---------- ------------- -------------- ---------------
The accompanying notes form part of these consolidated financial statements.
NATASA MINING LTD
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2013
Consolidated Attributable to equity holders of the Company
2012 Share Foreign
Fair based Currency
Share value payments Translation Retained Total
capital reserve reserve reserve earnings equity
$ $ $ $ $ $
---------------------- --- --------------- ------------ ---------- ------------- -------------- ---------------
Balance at 1 January
2012 31,355,527 850,986 57,000 36,074 14,279,091 46,578,678
Total comprehensive
income for the period
Loss - - - - (7,126,426) (7,126,426)
Total other comprehensive
income - 1,764,683 - 1,049,164 - 2,813,847
--------------- ------------ ---------- ------------- -------------- ---------------
Total comprehensive
loss for the period - 1,764,683 - 1,049,164 (7,126,426) (4,312,579)
--------------- ------------ ---------- ------------- -------------- ---------------
Transactions with
owners,
recorded directly in
equity
Contributions by
owners
Shares purchased into
Treasury (139,588) - - - - (139,588)
--------------- ------------ ---------- ------------- -------------- ---------------
Total contributions
by owners (139,588) - - - - (139,588)
--------------- ------------ ---------- ------------- -------------- ---------------
Total transactions with
owners (139,588) - - - - (139,588)
--------------- ------------ ---------- ------------- -------------- ---------------
Balance at 31 December
2012 31,215,939 2,615,669 57,000 1,085,238 7,152,665 42,126,511
--------------- ------------ ---------- ------------- -------------- ---------------
The accompanying notes form part of these consolidated financial statements.
NATASA MINING LTD
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2013
Consolidated
2013 2012
Note $ $
--------------------------------------------------- --------- -------------- -----------------
Cash flows from operating activities
Cash payments in the course of operations,
net of recoveries (1,719,951) (186,241)
-------------- -----------------
Net cash used in operating activities 21(ii) (1,719,951) (186,241)
-------------- -----------------
Cash flows from investing activities
Purchase of:
- equity interest in associate - (190,387)
- equity investments (1,240,822) (13,888,428)
Proceeds from sale of:
- equity interest in associate 876,446 -
- equity investments 12,060,791 9,999,619
Payments for purchases of plant and equipment (1,908) (7,366)
Payments for purchases of intangibles (244,761) (853,034)
Interest and dividends received 684,403 608,193
Loans and advances:
- to associates (1,598,513) (6,232,728)
- to other entities (1,321,424) (1,857,730)
- repaid by other entities 806,810 -
Net cash from / (used in) investing activities 10,021,022 (12,421,861)
-------------- -----------------
Cash flows from financing activities
Shares purchased into Treasury (228,832) (139,588)
Interest paid (18,060) (5,257)
-------------- -----------------
Net cash used in financing activities (246,892) (144,845)
-------------- -----------------
Net increase / (decrease) in cash and cash
equivalents 8,054,179 (12,752,947)
Cash and cash equivalents at 1 January - 11,195,215
-------------- -----------------
8,054,179 (1,557,732)
Bank overdrafts used for cash management purposes (1,557,732) 1,557,732
-------------- -----------------
Cash and cash equivalents at 31 December 21(i) 6,496,447 -
-------------- -----------------
The accompanying notes form part of these consolidated financial statements.
NATASA MINING LTD
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2013
1. SIGNIFICANT ACCOUNTING POLICIES
Natasa Mining Ltd (the "Company") is a company incorporated in the Cayman Islands. The consolidated financial report of the Company as at and for the year ended 31 December 2013 comprises the Company and its subsidiaries (together referred to as the "Group") and the Group's interest in associates.
a. Statement of compliance
The financial report is a general purpose financial report which has been prepared in accordance with International Financial Reporting Standards (IFRSs) as adopted by the European Union.
The financial report was authorised for issue by the directors on 28 May 2014.
b. Basis of preparation
The financial report is presented in United States dollars which is the Company's functional currency.
The financial report is prepared on the historical cost basis except that financial instruments classified as available-for-sale are stated at their fair value.
The preparation of financial statements in accordance with IFRSs requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. These accounting policies have been consistently applied by each entity in the Group.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
Judgements made by management in the application of International Financial Reporting Standards that have a significant effect on the financial report and estimates with a significant risk of material adjustment in the next year are discussed in note 9.
The accounting policies have been applied consistently to all periods presented in the consolidated financial report by the Group.
c. Basis of consolidation
Subsidiaries
The financial statements of subsidiaries are included in the consolidated financial statements from the date control commences until the date control ceases. Control exists when the Company has the power, directly or indirectly, to govern the financial and operating policies of an entity so as to obtain benefits from its activities.
Transactions eliminated on consolidation
Intragroup balances and any unrealised gains and losses or income and expenses arising from intragroup transactions are eliminated in preparing the consolidated financial statements.
d. Goodwill
Goodwill, representing the excess of the purchase consideration plus incidental costs over the fair value of the identifiable net assets acquired on the acquisition of a subsidiary or an associate, is stated at cost less any accumulated impairment losses. Goodwill is allocated to cash-generating units and is tested annually for impairment (see accounting policy r). In respect of associates, the carrying amount of goodwill is included in the carrying amount of the investment in the associate.
e. Investments
Associates
An associate is an entity, other than a partnership, over which the Group exercises significant influence, but not control, over financial and operating policies. Significant influence is presumed to exist when the Group holds between 20% and 50% of the voting power of another entity.
Investments in associates are accounted for using the equity method and are initially recognised at cost.
The consolidated financial statements includes the Group's share of the total recognised gains and losses of associates on an equity accounted basis, from the date that significant influence commences until the date that significant influence ceases. When the Group's share of losses exceeds its interest in an associate, the Group's carrying amount is reduced to nil and recognition of further losses is discontinued except to the extent that the Group has incurred legal or constructive obligations or made payments on behalf of an associate.
Unrealised gains arising from transactions with associates are eliminated to the extent of the Group's interest in the entity with adjustments made to the "Investment in associates" and "Share of associates net profit / (loss)" accounts.
When an associate makes a new issue of capital, changing the Group's percentage ownership, changes in the share of retained profits are reflected in the net profit or loss and changes in the share of reserves are reflected as direct adjustments to the specific equity accounts.
Equity securities
Other investments held by the Group are classified as being available-for-sale and are measured at fair value, with any resultant gain or loss recognised directly in equity, except for impairment losses. Where these investments are derecognised, the cumulative gain or loss previously recognised directly in equity is recognised in profit or loss. Where these investments are interest-bearing, interest calculated using the effective interest method is recognised in the income statement.
The fair value of listed financial instruments classified as available-for-sale is their quoted bid price at the balance sheet date.
Financial instruments classified as available-for-sale investments are recognised / derecognised by the Group on the date it commits to purchase / sell the investments. Securities held to maturity are recognised / derecognised on the day they are transferred to / by the Group.
Gains / (losses) on derecognition
Gains and (losses) from the sale of investments represents the proceeds from the sale of equity investments less the original cost or fair value to the Group, adjusted for any impairment losses previously recognised in relation to the investments.
f. Income tax
Income tax expense comprises current and deferred tax. Income tax is recognised in the income statement except to the extent that it relates to a business combination, or to items recognised directly in equity or in other comprehensive income.
Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax rates enacted or substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous years.
Deferred tax is provided using the balance sheet liability method, providing for temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. The following temporary differences are not provided for: the initial recognition of goodwill, the initial recognition of assets or liabilities that affect neither accounting nor taxable profit, and differences relating to investments in subsidiaries to the extent that they will probably not reverse in the foreseeable future. The amount of deferred tax provided is based on the expected manner of realisation or settlement of the carrying amount of assets and liabilities, using tax rates enacted or substantively enacted at the balance sheet date.
A deferred tax asset is recognised for unused tax losses, tax credits and deductible temporary differences only to the extent that it is probable that future taxable profits will be available against which the asset can be utilised. Deferred tax assets are reviewed at each reporting period and reduced to the extent that it is no longer probable that the related tax benefit will be realised.
g. Cash and cash equivalents
Cash and cash equivalents comprise cash balances and call deposits. Bank overdrafts that are repayable on demand and form an integral part of the Group's cash management are included as a component of cash and cash equivalents for the purpose of the statement of cash flows.
h. Plant and equipment
Recognition and measurement
Items of plant and equipment are initially recorded at their cost of acquisition at the date of acquisition, being the fair value of the consideration provided plus incidental costs attributable to the acquisition. Subsequently, they are measured at cost less accumulated depreciation / amortisation and impairment losses.
The gain or loss on disposal is calculated as the difference between the carrying value of the asset at the time of disposal and the net proceeds on disposal and are included as revenue on the date control of the asset passes.
Depreciation and amortisation
Items of plant and equipment are depreciated / amortised using the straight-line method over their estimated useful lives.
The depreciation / amortisation rates and methods are reviewed annually for appropriateness and the rates used for each class of asset in both the current and prior years are as follows:
- Office furniture and computer equipment 50%
Assets are depreciated or amortised from the date of acquisition or, in respect of internally constructed assets, from the time an asset is completed and held ready for use.
i. Leased plant and equipment
Leases of plant and equipment under which the Group does not assume substantially all the risks and benefits of ownership are classified as operating leases. Leased assets are not recognised in the Group's statement of financial position. Lease payments are accounted for as described in accounting policy j.
j. Expenses
Operating lease payments
Payments made under operating leases are recognised in the income statement on a straight-line basis over the term of the lease. Lease incentives received are recognised in the income statement as an integral part of the total lease expense and spread over the lease term.
k. Exploration, evaluation and development expenditure
Exploration and evaluation
Pre-licence costs are recognised in the income statement as incurred.
Exploration and evaluation costs, including the costs of acquiring licences, are capitalised as exploration and evaluation assets on a project-by-project basis pending determination of the technical feasibility and commercial viability of the project. The capitalised costs are presented as either tangible or intangible exploration and evaluation assets according to the nature of the assets acquired. When a licence is relinquished or a project abandoned, the related costs are recognised in the income statement immediately.
Tangible / intangible exploration and evaluation assets that are available for use are depreciated / amortised on a units of production basis over the life of the economically recoverable reserve.
Expenditure deemed to be unsuccessful is recognised in the income statement immediately.
Development
Development costs are capitalised upon the Group demonstrating: (i) the technical feasibility of completing the development so that it will be available for use; and (ii) how the development costs will generate probable future economic benefits.
Exploration, evaluation and development assets are depreciated on a straight-line basis over the life of the area of interest according to the rate of depletion of the economically recoverable reserves.
l. Trade and other receivables
Trade and other receivables are carried at amortised cost less impairment losses.
m. Trade and other payables
Trade and other payables are recognised initially at fair value plus any directly attributable transaction costs. Subsequent and initial recognition of these are stated at amortised cost, using the effective interest method.
n. Foreign currency transactions and balances
Transactions in foreign currencies are translated to the respective functional currency of the Group at the exchange rates ruling at the date of the transactions. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are translated to the functional currency, United States dollars, at the exchange rate at that date. Foreign exchange differences arising on translation are recognised in the income statement. Non-monetary assets and liabilities that are measured in terms of historical cost in a foreign currency are translated using the exchange rate at the date of the transaction. Non-monetary assets and liabilities denominated in foreign currencies that are stated at fair value are translated to United States dollars at foreign exchange rates ruling at the dates the fair value was determined. Foreign currency differences arising on retranslation are recognised in profit or loss, except for differences arising on the retranslation of available-for-sale equity instruments.
o. Financial statements of foreign operations
The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on acquisition, are translated to United States dollars at exchange rates at the reporting date. The revenues and expenses of foreign operations, excluding foreign operations in hyperinflationary economies, are translated to United States dollars at exchange rates at the dates of the transactions. Foreign exchange differences arising on retranslation are recognised directly in a separate component of equity.
p. Employee benefits
Share based payment transactions
The fair value of services received in return for share options granted to employees and others is measured by reference to the fair value of the share options granted. The fair value of options granted is recognised as an employee expense with a corresponding increase in equity. The fair value is measured at grant date and spread over the period during which the participants become unconditionally entitled to the options. The fair value is measured using the Black-Scholes option pricing model, taking into account the terms and conditions upon which the options were granted. The amount recognised as an expense is adjusted to reflect the actual number of share options that vest except where the forfeiture is only due to the share price not achieving the threshold for vesting.
Superannuation plan
The Group contributes to several defined contribution plans. Obligations for contributions to defined contribution plans are recognised as an expense in the income statement as incurred.
q. Revenue recognition
Revenue from services comprises management fees that are charged to related parties and investees and are recognised as the service is rendered.
r. Impairment
The carrying amount of the Group's assets are reviewed at each balance date to determine whether there is any indication of impairment. If such indication exists, the asset's recoverable amount is estimated.
An impairment loss is recognised whenever the carrying amount of an asset exceeds its recoverable amount. Impairment losses are recognised in the income statement unless the asset has previously been revalued, in which case the impairment loss is recognised as a reversal to the extent of that previous revaluation with any excess recognised through the income statement.
Impairment of receivables is not recognised until objective evidence is available that a loss event has occurred. Receivables are individually assessed for impairment.
When a decline in the fair value of an available-for-sale financial asset has been recognised directly in equity and there is objective evidence that the asset is impaired, the cumulative loss that had been recognised directly in equity is recognised in profit or loss even though the financial asset has not been derecognised. The amount of the cumulative loss that is recognised in the profit or loss is the difference between the acquisition cost and current fair value, less any impairment loss on that financial asset previously recognised in profit or loss.
s. Segment reporting
The Group determines and presents operating segments based on the information that internally is provided to the Board of Directors, which is the Group's chief operating decision maker.
An operating segment is a component of the Group that engages in business activities from which it may earn revenues and incur expenses, including revenues and expenses that relate to transactions with any of the Group's other components. All operating segments' operating results are regularly reviewed by the Board of Directors to make decisions about resources to be allocated to the segment and assess its performance, and for which discrete financial information is available.
Segment results that are reported to the Board of Directors include items directly attributable to a segment as well as those that can be allocated on a reasonable basis.
Segment capital expenditure is the total cost incurred during the period to acquire property, plant and equipment, and intangible assets other than goodwill.
t. Share capital
Ordinary shares are classified as equity. Incremental costs directly attributable to issue of ordinary shares and share options are recognised as a deduction from equity, net of any tax effects.
u. Finance income and expenses
Finance income comprises interest income on funds invested (including available-for-sale financial assets). Interest income is recognised as it accrues in profit or loss, using the effective interest rate method.
Finance expenses comprise interest expense on borrowings, unwinding of the discount on provisions, changes in the fair value of financial assets at fair value through profit or loss. All borrowing costs are recognised in profit and loss using the effective interest method.
Foreign currency gains and losses are reported on a net basis.
v. New standards and interpretations
During the year the Group has adopted the following relevant standards:
Effective date
IAS 1 Presentation of Items of Other Comprehensive 1 January 2013
Income
IAS 19 (amended) Employee Benefits 1 January 2013
IAS 28 (amended) Investment in Associates and 1 January 2013
Joint Ventures
IFRS 10 Consolidated Financial Statements 1 January 2013
IFRS 11 Joint Arrangements 1 January 2013
IFRS 12 Disclosure of Interests in Other Entities 1 January 2013
IFRS 13 Fair Value Measurement 1 January 2013
The adoption of these standards did not have a material impact on the Group's financial position or performance.
Consolidated
2013 2012
$ $
---------------------------------------------------- ---------- ------------
2. FINANCE INCOME AND EXPENSE
Interest income on bank deposits and loans 197,931 93,481
Dividends received 611,872 514,712
Finance income 809,803 608,193
---------- ------------
Interest expense on financial liabilities measured
at amortised cost 18,060 5,257
Finance expense 18,060 5,257
---------- ------------
Net finance income and expense 791,743 602,936
---------- ------------
3. LOSS BEFORE INCOME TAX EXPENSE
Operating loss before tax has been arrived
at after charging the following items:
Personnel costs
- wages and salaries 1,077,327 1,291,636
- contributions to defined contribution funds 28,488 28,610
- other 9,132 9,431
---------- ------------
1,114,947 1,329,677
Operating lease rentals 90,913 102,960
---------- ------------
4. AUDITORS' REMUNERATION
Amounts received or due and receivable for
audit services by:
Sawin & Edwards 66,006 65,711
Firms other than Sawin & Edwards - -
---------- ------------
5. TAXATION
Income Tax expense
Current year expense - -
Current year deferred tax assets not recognised - -
------------ ------------
Income tax expense in income statement - -
------------ ------------
Numerical reconciliation between income tax
expense and pre tax net loss
Loss before tax (3,194,203) (7,126,426)
------------ ------------
Income tax expense using the domestic corporation
tax rate of 0% (2012 : 0%). Prima facie income
tax benefit on pre-tax accounting profit:
- at Cayman Islands tax rate of 0% - -
- adjustment for difference between Cayman
Islands and overseas tax rates - -
Increase in income tax due to:
Expenses not deductible for tax purposes - -
Decrease in income tax due to:
Deferred tax asset not recognised - -
Income tax expense on pre-tax net result - -
------------ ------------
There is no corporation tax chargeable in the Cayman Islands.
Consolidated
2013 2012
$ $
----------------------------------------------- --- ------------------ --------------
6. LOSS PER SHARE
Basic loss per share (10.9c) (24.4c)
Diluted loss per share (10.9c) (24.4c)
Loss attributable to ordinary shareholders as
used in the calculation of basic earnings per
share (3,194,203) (7,126,426)
Loss attributable to ordinary shareholders as
used in the calculation of diluted earnings
per share (3,194,203) (7,126,426)
Weighted average number of ordinary shares used
in the calculation of basic loss per share 29,241,951 29,241,951
Weighted average number of ordinary shares used
in the calculation of diluted loss per share 29,241,951 29,241,951
7. TRADE AND OTHER RECEIVABLES
Current
Loans to other entities 2,064,056 1,857,730
Other debtors 17,581 173,907
2,081,637 2,031,637
------------ ------------
8. INVESTMENTS IN EQUITY ACCOUNTED INVESTEES
The Group has the following investments in equity accounted investees
Reporting Ownership
Principal Activities Country Date 2013 2012
Petroleum exploration and Cayman
UMC Energy Corporation evaluation in Papua New Guinea Islands
(formerly UMC and uranium exploration and (formerly
Energy plc) evaluation in Madagascar UK) 31 Dec 41.3 42.6
Share of Net assets Share of
associates as reported associates
net profit by associates net assets
/ (loss) equity
recognised accounted
(100%)
Profit Total assets Total liabilities
/ (loss)
Revenues (100%) (100%) (100%)
(100%)
2013
UMC Energy
Corporation - (2,594,252) (1,010,465) 26,509,539 (12,074,280) 14,435,259 5,967,536
- (2,594,252) (1,010,465) 26,509,539 (12,074,280) 14,435,259 5,967,536
------------ ---------------- ---------------- ---------------- --------------------- ---------------- --------------
2012
UMC Energy
plc - (6,627,553) (2,823,337) 27,072,079 (10,146,531) 16,925,548 7,210,284
- (6,627,553) (2,823,337) 27,072,079 (10,146,531) 16,925,548 7,210,284
------------ ---------------- ---------------- ---------------- --------------------- ---------------- --------------
Consolidated
2013 2012
$ $
------------------------------------------------------------------------------------------------------ ----- ---------------- ------------------
9. EXPLORATION AND EVALUATION EXPENDITURE - INTANGIBLE
Opening balance - 1 January 5,822,066 5,036,961
Additions at fair value 244,761 853,034
Impairment (194,816) (185,000)
Foreign exchange variation (398,925) 117,071
Closing balance - 31 December 5,473,086 5,822,066
---------------- ------------------
Critical accounting judgements in applying the consolidated entity's accounting
policies
The Fox Creek coal project has yet to reach a stage of development where
a determination of the technical feasibility or commercial viability can
be assessed. In these circumstances, whether there is any indication that
the asset has been impaired is a matter of judgement, as is the determination
of the quantum of any required impairment adjustment. The Directors have
used their experience to conclude that no impairment adjustment is required
in the current year.
The Company has committed to invest $500,000 in a series of oil and gas
exploration projects in California. In the year $nil (2012 : $379,816)
has been invested and an impairment adjustment of $194,816 (2012 : $185,000)
was recognised relating to projects which were not successful.
Consolidated
2013 2012
$ $
-------------------------------------------------- ------------- -------------
10. OTHER FINANCIAL ASSETS
Non-current
Equity securities available-for-sale:
- listed 19,181,666 28,729,602
------------- -------------
Total other financial assets 19,181,666 28,729,602
------------- -------------
The available-for-sale listed equity securities comprise securities
in companies operating in the mining and natural resources sector as
well as holdings in major companies operating in other sectors. Although
the Company's investment strategy is to focus on pre-production and/or
producing resource opportunities it also holds securities in major
companies operating in other sectors in order to maximise the overall
return to shareholders.
11. PLANT AND EQUIPMENT
Office furniture and computer equipment
At cost 27,639 25,834
Accumulated depreciation (22,272) (18,712)
------------- -------------
5,367 7,122
------------- -------------
Total plant and equipment net book value 5,367 7,122
------------- -------------
Reconciliations
Reconciliations of the carrying amount for each
class of plant and equipment are set out below:
Office furniture and computer equipment
Cost
Opening balance - 1 January 25,834 34,356
Additions 1,907 7,366
Disposals - (15,888)
Foreign exchange variation (102) -
Closing balance - 31 December 27,639 25,834
------------- -------------
Accumulated depreciation
Opening balance - 1 January (18,712) (28,995)
Disposals - 15,888
Depreciation (3,560) (5,605)
Foreign exchange variation - -
------------- -------------
Closing balance - 31 December (22,272) (18,712)
------------- -------------
12. TRADE AND OTHER PAYABLES
Current
Bank overdraft - 1,557,732
Non-trade payables and accruals 114,367 116,468
114,367 1,674,200
-------- ----------
13. SHARE CAPITAL
Issued and paid-up capital
29,241,951 (2012 : 29,241,951) ordinary shares,
fully paid 31,355,527 31,355,527
----------- -----------
Consolidated
2013 2012 2013 2012
Ordinary share capital Number Number $ $
---------------------------------------- --- -------------- ---------------- -------------- --------------
Opening balance - 1 January 29,241,951 29,241,951 31,488,938 31,488,938
Shares issued: - - - -
Capital return:
In cash - - - -
Closing balance - 31 December 29,241,951 29,241,951 31,488,938 31,488,938
-------------- ---------------- -------------- --------------
Shares held in Treasury (501,831) (272,999)
-------------- --------------
30,987,107 31,215,939
-------------- --------------
2013 2012 2013 2012
Shares held in Treasury Number Number $ $
---------------------------------------- --- -------------- ---------------- -------------- --------------
Opening balance - 1 January 195,000 95,000 272,999 133,411
Shares purchased into Treasury 183,000 100,000 228,832 139,588
Closing balance - 31 December 378,000 195,000 501,831 272,999
-------------- ---------------- -------------- --------------
Holders of ordinary shares are entitled to receive dividends as declared
from time to time and are entitled to one vote per share at shareholders'
meetings.
Consolidated
2013 2012
Options Number Number
------------------------------------------------------------------------------------- -------- -------------
Option holders are not entitled to participate in any
share issue of the Company or to receive dividends.
31 December 2014 GBP2.00 options over ordinary shares,
vested on grant
Opening balance - 1 January 193,735 193,735
Granted during the year - -
Closing balance - 31 December 193,735 193,735
-------- -------------
These options are not considered to be dilutive at 31 December 2013 due
to their exercise price exceeding the market price at which the Company's
ordinary shares have traded.
The fair value of the options is calculated at the date of grant using
a Black-Scholes model and allocated to each reporting period evenly over
the period from grant date to vesting date.
The following factors and assumptions were used in determining the fair
value of options on grant date:
Estimated
price of Risk
Expiry Fair Exercise shares on Estimated free Dividend
Grant date date value price grant volatility interest yield
per date rate %
option
27/5/2010 31/12/2014 $0.29 GBP2 GBP1 45% 2.28% -
Consolidated
2013 2012
$ $
--------------------------------------------------------- ----------------- -------------
14. RESERVES
Fair value reserve
Opening balance - 1 January 2,615,669 850,986
Change in fair value of equity securities available
for sale net of tax 728,629 1,764,683
----------------- -------------
Closing balance - 31 December 3,344,298 2,615,669
----------------- -------------
Share based payments reserve
Opening balance - 1 January 57,000 57,000
Equity settled transactions - -
----------------- -------------
Closing balance - 31 December 57,000 57,000
----------------- -------------
Foreign currency translation reserve
Opening balance - 1 January 1,085,238 36,074
Change arising on translation of the financial
statements of foreign operations (340,733) 1,049,164
----------------- -------------
Closing balance - 31 December 744,505 1,085,238
----------------- -------------
Total reserves - 31 December 4,145,803 3,757,907
----------------- -------------
Fair value reserve
The fair value reserve comprises the cumulative net change in the fair
value of available-for-sale investments net of tax until the investment
is derecognised.
Share based payments reserve
The share based payments reserve comprises the fair value of options
granted.
Foreign currency translation reserve
The foreign currency translation reserve comprises all foreign currency
differences arising from the translation of the financial statements
of foreign operations.
15. RETAINED EARNINGS
Opening balance - 1 January 7,152,665 14,279,091
Profit for the year (3,194,203) (7,126,426)
Closing balance - 31 December 3,958,462 7,152,665
------------- -------------
16. TOTAL EQUITY RECONCILIATION
Total equity at beginning of year 42,126,511 46,578,678
Total comprehensive income for the year (2,806,307) (4,312,579)
Shares purchased into Treasury (228,832) (139,588)
Total equity at end of year 39,091,372 42,126,511
------------- -------------
17. CONTROLLED ENTITIES Interest Interest
Parent entity - Natasa Mining Place of 2013 2012
Ltd
Subsidiaries incorporation % %
Alberta Coal Corporation Cayman 100 100
Accelus Networks Ltd Cayman 100 -
Coilex LLC USA 90 90
Crown Step Ltd BVI 100 100
Fox Creek Coal (Gibraltar)
Ltd Gibraltar 100 100
Fox Creek Coal Ltd Cayman 100 100
Fox Creek Coal Inc Canada 100 100
Natasa Chile SA Chile 100 100
Natasa Coal BV Netherlands 100 100
Natasa Coal (Gibraltar) Ltd Gibraltar 100 100
Natasa Management SARL Monaco 100 100
Natasa Mining Chile SA Chile 100 100
Natasa Mining (Australia)
Pty Ltd Australia 100 100
Natasa Mining (UK) Ltd UK 100 100
Pacific King Investments
Ltd BVI 100 100
18. OPERATING SEGMENTS
The Group has one reportable segment, as described below, which represents the Group's strategic business unit. The strategic business unit is that of investment in mineral exploration and development projects and companies. The Board of Directors reviews internal management reports at least monthly. Information regarding the results of the reportable segments is included below. Performance is measured based on the segment profit before income tax as included in the internal management reports that are reviewed by the Board of Directors. There is no inter-segment pricing.
Information about reportable segments 2013 2012
$ $
--------------------------------------------------- ---------- -------- ------------
External revenue - -
Gain on sale of equity and debt instruments 2,509,366 1,770,081
Gain on disposal of interest in associate 591,326 -
Financial income 809,803 608,193
Finance expenses (18,060) (5,257)
Depreciation and amortisation (3,560) (5,605)
-------------- ------------
Reportable segment loss before income tax (2,183,738) (4,303,089)
-------------- ------------
Share of profit of equity method investees (1,010,465) (2,823,337)
Reportable segment assets 39,205,739 43,800,711
Capital expenditure 246,668 860,400
-------------- ------------
Geographical segments
The segment is managed on a worldwide basis and individual assets are located in various countries. In presenting information on the basis of geographical segments, segments assets are based on the geographical location of the assets.
Non-current assets
2013 2012
$ $
-------------------------------------------------- ----- ----------- -----------
Asia 456,286 487,027
Australia 3,635,175 5,415,010
Europe 13,499,982 16,809,898
North America 13,036,212 19,057,139
Total 30,627,655 41,769,074
----------- -----------
The Group did not generate any revenue from services during the financial year ended 31 December 2013 (2012 : $nil).
19. DIRECTOR AND KEY MANAGEMENT PERSONNEL DISCLOSURES
Remuneration of Directors and Specified Executives
Remuneration of senior management personnel is determined by a Remuneration
Committee comprised of the Chairman and non-executive directors. The
Board as a whole is responsible for making recommendations on remuneration
policies and packages applicable to the Board members of the Group.
The broad remuneration policy is to ensure the remuneration package
properly reflects the person's duties and responsibilities, and that
remuneration is competitive in attracting, retaining and motivating
people of the highest quality; taking into account information obtained
via reputable industry remuneration surveys and / or independent consultant
reports. This also includes responsibility for share option schemes,
incentive performance packages, retirement and termination entitlements,
fringe benefits policies and professional indemnity and liability
insurance policies. For the current year, remuneration for all executives
comprised fixed remuneration elements only; no bonuses or equity based
remuneration was paid. For non-executives, remuneration comprised
fixed remuneration elements only; no bonuses or equity based remuneration
was paid.
Equity holdings and transactions : Ordinary shares
Held at Held at
2013 1.1.2013 31.12.2013
or date of or date of
appointment Acquired Disposed retirement
Directors
C. Kyriakou 6,187,058 - - 6,187,058
C. de Chezelles - - - -
B. Koutsouras - - - -
I.H. Mann 150,595 50,000 - 200,595
J.R. Reynolds 14,497 - - 14,497
Executives
J.B. Maguire 86,308 - - 86,308
J.W. Hogg - - - -
Held at Held at
2012 1.1.2012 31.12.2012
or date of or date of
appointment Acquired Disposed retirement
Directors
C. Kyriakou 6,187,058 - - 6,187,058
C. de Chezelles - - - -
B. Koutsouras - - - -
I.H. Mann 150,595 - - 150,595
J.R. Reynolds 14,497 - - 14,497
Executives
J.B. Maguire 86,308 - - 86,308
J.W. Hogg - - - -
Information regarding individual directors and executives compensation and some equity instruments disclosures are as provided in the Remuneration Report section of the Directors' Report.
Apart from the details disclosed in this note, no director has entered into a material contract with the Group since the end of the previous financial year and there were no material contracts involving directors' interests existing at year-end.
Other transactions with the Group
A number of specified directors and specified executives, or their personally related entities, hold positions in other entities that result in them having control or significant influence over the financial or operating policies of those entities.
A number of these entities transacted with the Group in the reporting period. The terms and conditions of those transactions were no more favourable than those available, or which might reasonably be expected to be available, on similar transactions to unrelated entities on an arm's length basis.
The aggregate amounts recognised during the year relating to key management personnel and their related parties, were total revenue of $nil and total expense of $571,609. Details of the transactions are as follows:
2013 2012
Key management Transaction Note $ $
personnel
C. Kyriakou Consultancy and rent (i), (ii) 387,698 415,819
J.B. Maguire Consultancy (iii) 183,911 197,143
(i) Consultancy fees of $326,616 (2012: $331,081) were paid by the Company to a company in which a Director, Mr Kyriakou, has an interest. These services were charged at commercial rates. The amount of consultancy fees is included in the remuneration disclosure set out in this note 19.
(ii) Rent of $61,082 (2012: $84,738) was paid by the Company to companies in which a Director, Mr. Kyriakou, has an interest. This rent was charged at commercial rates.
(iii) Consultancy fees of $183,911 (2012: $197,143) were paid by the Company to a company in which the Company Secretary, Mr Maguire, has an interest. These services were charged at commercial rates. The amount of consultancy fees is included in the remuneration disclosure set out in this note 19.
2013 2012
Assets and liabilities arising from the above transactions $ $
Current assets
Trade and other receivables (note 7) - -
Current liabilities
Loans and borrowings (note 12) - -
- -
----- -----
Subsidiaries and Associates
Details of interests in subsidiaries and associates are set out in notes 8 and 17. Details of dealings with these entities are set out below. These transactions are in the normal course of business and on normal terms and conditions.
Funds have been advanced to UMC Energy Corporation (formerly UMC Energy plc) (UMC Energy) to enable UMC Energy to meet its working capital requirements especially in relation to the Morondava uranium project and the Papua New Guinea petroleum project. The total value of the loans receivable at 31 December 2013 was $7,831,241 (31 December 2012: $6,232,728). These amounts have been provided for to the extent of $7,831,241 (2012: $6,232,728). On 2 August 2013, the Group entered into an agreement with UMC Energy, pursuant to which the Group will provide to UMC Energy office facilities and will facilitate the meetings of UMC Energy's directors in order for them to manage and control the affairs of UMC Energy. In return for these services UMC Energy agreed to pay the Group the cost of the services provided plus 10% subject to a minimum fee of EUR250 per month, which during the year amounted to $1,698 (2012: $nil).
20. FINANCIAL INSTRUMENTS
Overview
The Group has exposure to the following risks from its use of financial
instruments:
* Credit risk
* Liquidity risk
* Market risk
This note presents information about the Group's exposure to each of the
above risks, its objectives, policies and processes for measuring and
managing risk, and the management of capital. Further quantitative disclosures
are included throughout this financial report.
The board of directors has overall responsibility for the establishment
and oversight of the risk management framework.
Risk management policies are established to identify and analyse the risks
faced by the Group, to set appropriate limits and controls, to monitor
risks and adherence to limits.
Credit risk
Credit risk is the risk of financial loss to the Group if a customer or
counterparty to a financial instrument fails to meet its contractual obligations,
and arises principally from the Group's receivables from customers, government
agencies, bankers and investment securities.
Trade and other receivables
The Group's exposure to credit risk is influenced mainly by the individual
characteristics of each customer and counterparty.
The Group has established an allowance for impairment that represents
its estimate of incurred losses in respect of trade and other receivables
and investments. This allowance represents specific losses that relate
to individually significant exposures.
Investments
The Group limits its exposure to credit risk by only dealing with brokers
who are members of a recognised stock exchange and management does not
expect any counterparty to fail to meet its obligations.
Financial risk factors
The carrying amounts of financial assets recognised in the balance sheet
(including cash at bank) best represent the Group's maximum exposure to
credit risk at the reporting date. In respect of those financial assets
and the credit risk embodied within them, the Group holds no significant
collateral as security and there are no other significant credit enhancements
in respect of these assets. The credit quality of all financial assets
that are neither past due nor impaired is appropriate and is consistently
monitored in order to identify any potential adverse changes in credit
quality. There are no significant financial assets that have had renegotiated
terms that would otherwise, without that renegotiation, have been past
due or impaired.
Liquidity risk
Liquidity risk is the risk that the Group will not be able to meet its
financial obligations as they fall due. The Group's approach to managing
liquidity risk is to ensure, as far as possible, that it will always have
sufficient liquidity to meet its liabilities when due, under both normal
and stressed conditions, without incurring unacceptable losses or risking
damage to the Group's reputation.
Typically the Group ensures it has sufficient cash on demand to meet expected
operational expenses for a period of more than 60 days, including the
servicing of financial obligations; this excludes the potential impact
of extreme circumstances that cannot reasonably be predicted, such as
natural disasters.
The following are the contractual maturities of financial liabilities,
including estimated interest payments:
Contract
Carrying -ual Cash 6 mths or
amount flows less
$ $ $
31 December 2013
Non-derivative financial liabilities
Trade and other payables 114,367 114,367 114,367
114,367 114,367 114,367
----------- ------------ -----------
31 December 2012
Non-derivative financial liabilities
Trade and other payables 116,468 116,468 116,468
116,468 116,468 116,468
----------- ------------ -----------
Market risk
Market risk is the risk that changes in market prices, such as foreign
exchange rates, interest rates and equity prices will affect the Group's
income or value of its holdings in financial instruments. The objective
of market risk management is to manage and control market risk exposures
within acceptable parameters, while optimising the return.
Currency risk
The Group is exposed to currency risk on cash holdings, receivables and
other financial assets that are denominated in a currency other than the
functional currency of the Group, the United States dollar (USD).
The Company's investments in subsidiaries are not hedged as those currency
positions are considered to be long-term in nature.
The Group's exposure to foreign currency
risk
at balance date was as follows:
USD AUD CAD CHF EUR GBP
In USD $ $ $ $ $ $
31 December 2013
Cash and cash equivalents 3,585,862 424,999 182,239 1,350,970 759,825 192,552
Trade and other receivables 1,000,000 701,986 11,537 - 5,378 362,736
Other financial assets 7,633,601 3,631,223 384,396 4,022,897 2,723,061 786,488
Trade and other payables (90,396) (15,839) (307) - (7,571) (254)
Gross and net exposure 12,129,067 4,742,369 577,865 5,373,867 3,480,693 1,341,522
----------- ---------- ---------- ---------- ---------- ----------
31 December 2012
Cash and cash equivalents (414,954) 442,803 86,398 (737,418) (589,219) (345,342)
Trade and other receivables - 1,145,726 72,181 - 6,920 806,810
Other financial assets 12,353,499 5,409,405 1,367,085 5,238,185 3,522,039 839,389
Trade and other payables (491) (113,176) (2,463) - - (338)
Gross and net exposure 11,938,054 6,884,758 1,523,201 4,500,767 2,939,740 1,300,519
----------- ---------- ---------- ---------- ---------- ----------
Market risk (continued)
The following significant Average rate Reporting date
exchange rates applied spot rate
during the year:
USD1 2013 2012 2013 2012
AUD 1.0355 0.9660 1.1271 0.9642
CAD 1.0295 0.9998 1.0697 0.9969
CHF 0.9269 0.9378 0.8905 0.9139
EUR 0.7533 0.7782 0.7264 0.7567
GBP 0.6397 0.6311 0.6065 0.6191
Sensitivity analysis
A 10 percent strengthening of the United States dollar against the following
currencies at 31 December would have increased / (decreased) equity and
profit or loss by the amounts shown below. This analysis assumes that
all other variables, in particular interest rates, remain constant. The
analysis is performed on the same basis for 2012.
Effect in USD
Profit
31 December 2013 Equity or loss
AUD (330,111) (101,013)
CAD (34,945) (17,588)
CHF (365,718) (122,815)
EUR (247,551) (68,876)
GBP (71,499) (50,458)
31 December 2012
AUD (491,764) (134,123)
CAD (124,280) (14,640)
CHF (476,199) 67,038
EUR (320,185) 52,936
GBP (76,308) (41,982)
A 10 percent weakening of the United States dollar against the above currencies
at 31 December would have had the equal but opposite effect on the above
currencies to the amounts shown above, on the basis that all other variables
remain constant.
Interest rate risk
The Group limits its exposure to interest rate risk by entering into fixed
rate agreements as far as possible, other than in respect of cash holdings
where the Group's interest earnings are subject to interest rate risk.
Profile
At the reporting date the interest rate profile of the Group's interest-bearing
financial instruments was:
Consolidated
Carrying amount
Fixed rate instruments 2013 2012
Financial assets 2,064,056 -
Financial liabilities - -
---------- --------------
2,064,056 -
---------- --------------
Variable rate instruments
Financial assets 6,496,447 1,857,730
Financial liabilities - (1,715,639)
---------- --------------
6,496,447 142,091
---------- --------------
Fair value sensitivity analysis for fixed rate instruments
The Group does not account for any fixed rate financial assets and liabilities
at fair value through profit or loss. Therefore a change in interest rates
at the reporting date would not affect profit or loss.
A change of 100 basis points in interest rates would have increased or
decreased the Group's equity by $nil (2012 : $nil).
Cash flow sensitivity analysis for variable rate instruments
A change of 100 basis points in interest rates at the reporting date would
have increased or decreased the Group's equity and profit and loss by
$178 (2012 : $640). The analysis assumes that all other variables, in
particular foreign currency rates, remain constant. The analysis is performed
on the same basis for 2012.
Commodity price risk
The Group is presently not directly exposed to commodity price risk. The
Group does not enter into commodity price hedging arrangements.
Other market price risk
Equity price risk arises from available-for-sale equity securities held
for investment purposes. The Board monitors the equity securities in the
Group's investment portfolio on an individual basis and all buy and sell
decisions are made by management within limits approved by the Board.
Capital management
The Board's policy is to maintain a strong capital base so as to maintain
investor, creditor and market confidence and to sustain future development
of the business.
There were no changes to the Group's approach to capital management during
the year.
Neither the Company nor any of its subsidiaries are subject to externally
imposed capital requirements.
Fair values
Fair values versus carrying amounts
The fair values of financial assets and liabilities, together with the
carrying amounts shown in the balance sheet are as follows:
Consolidated
Carrying Net fair Carrying Net fair
amount value amount Value
2013 2013 2012 2012
$ $ $ $
Cash and cash equivalents 6,496,447 6,496,447 - -
Trade and other receivables 2,081,637 2,081,637 2,031,637 2,031,637
Equity securities available
for sale 19,181,666 19,181,666 28,729,602 28,729,602
Trade and other payables (114,367) (114,367) (1,674,200) (1,674,200)
27,645,383 27,645,383 29,087,039 29,087,039
----------- ----------- ------------ ---------------
Consolidated
2013 2012
$ $
-------------------------------------------------- ------ ---------------- -------------
21. NOTES TO THE CONSOLIDATED STATEMENTS OF CASH
FLOWS
(i) Reconciliation of cash
For the purposes of the statements of cash flows, cash includes cash
on hand and at bank and short-term deposits. Cash as at the end of the
financial year as shown in the statements of cash flows is reconciled
to the balance sheet as follows:
Classified as cash 6,496,447 -
6,496,447 -
---------------- -------------
(ii) Reconciliation of cash flows from operating
activities
Loss for the year (3,194,203) (7,126,425)
Adjustments for:
Interest and dividend income (684,403) (608,193)
Interest expense 18,060 5,257
Depreciation 3,560 5,605
Gain on sale of shares (3,100,692) (1,770,081)
Exchange rate fluctuations 161,590 1,372
Impairment losses 4,129,939 6,775,913
Share of net result of associates 1,010,465 2,823,337
---------------- -------------
Operating cash flow before changes in working
capital and provisions (1,655,684) 106,785
Increase in trade and other receivables (62,166) (75,075)
Decrease in trade and other payables (2,101) (217,951)
---------------- -------------
Net cash used in operating activities (1,719,951) (186,241)
---------------- -------------
22. COMMITMENTS AND CONTINGENT LIABILITIES
The Group has no commitments for capital or revenue purchases other than those entered into in the ordinary course of business.
The Group has no commitments under non-cancellable leases.
The Group has no contingent liabilities.
On 2 August 2013, the Company and UMC Energy Corporation entered into a loan facility agreement whereby the Company agreed to make available to UMC Energy a loan facility of not less than GBP1.7 million for the period up to 31 January 2015.
23. SUBSEQUENT EVENTS
Between 1 January 2014 and the date of this report the following material transactions have occurred. The Group has:
-- Purchased $0.6 million of equity instruments. -- Recovered $2.1 million of secured loans from other entities. -- Advanced $0.2 million of loan funds to UMC Energy. -- Purchased 1,100,000 of its own shares into Treasury at a cost of $0.7 million.
The financial effects of the above transactions have not been brought to account in the financial statements for the year ended 31 December 2013.
24. PUBLICATION OF NON STATUTORY ACCOUNTS
The financial information set out in this announcement does not constitute statutory accounts.
The financial information for the year ended 31 December 2013 has been extracted from the Group's financial statements to that date upon which the auditors' opinion is unqualified.
25. ANNUAL REPORT AND ANNUAL GENERAL MEETING
The Annual Report for the year ended 31 December 2013 will be available from the Company's website www.natasamining.com from tomorrow.
The annual general meeting of the Company has been convened for 11.00 a.m. on 25 June 2014 at First Floor, 10 Dover Street London W1S 4LQ
**ENDS**
Enquiries:
Natasa Mining Ltd
Chrisilios Kyriakou, Executive Chairman
Telephone: +44 (0) 20 7290 3102
www.natasamining.com
Angela Hallett / James Spinney
Strand Hanson Limited
Telephone: +44 (0) 20 7409 3494
This information is provided by RNS
The company news service from the London Stock Exchange
END
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