Share Name Share Symbol Market Type Share ISIN Share Description
Van Dieman Mines LSE:VDM London Ordinary Share GB00B03HFG82 ORD 1P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  +0.00p +0.00% 0.875p 0.00p 0.00p - - - 0.00 05:00:10
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
- - - - 0.86

Van Dieman Mines Share Discussion Threads

Showing 926 to 949 of 950 messages
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DateSubjectAuthorDiscuss
14/8/2009
15:25
This now looks like another scam of the highest order , what the hell was Mike Etheridge taken on for if the best he can is capitulate and call in the liquidators...sham!!!!!!!!!
jotoha2
14/7/2009
16:05
And now we have two none exec jumping , clearly they are not planning anything of consequence.
jotoha2
07/7/2009
09:11
Now that was a pretty rubbish RNS , what the hell have these numpties been doing since Feb 09, next they will say unable to trade further and have blown all the remaining cash on salaries...utter scam.
jotoha2
25/2/2009
08:47
So looks like Galena don't just want 83.55% of the total voting rights, they want the whole company. Small shareholders sold out again by management
dispenser
20/11/2008
18:14
There is an outdated flash note by Fox-Davies (November 17, 2008) Suppose it will be reworked in a couple of days http://www.fox-davies.com/media/18075/vdmflashnote17november2008.pdf
vanbrussel
20/11/2008
11:48
Yes, the dilution is much heavier than I'd expected and has been made worse by the offtake agreement, where unbelievably it looks like Trafigura can set the price at a LME rate that suits them, as well as deducting penalties, it looks fairly obvious that the company have had to concede a lot on pricing, alhtough they don't spell it out. At least though they aren't bust and there ought to be upside once Endurance gets going and if the tin price recovers
daz
20/11/2008
11:19
Now thats what I call being sharp, Galena will end up with 85% of equity having put in around £7M , oh those poor old insti , truly shafted!
jotoha1
20/11/2008
10:02
Well, this is not even a Dutch treat: In the event that all the Loan Notes and Warrants were exercised and assuming that the interest that may accrue is also converted into Ordinary Shares Galena would be interested in ► 689,660,800 Ordinary Shares representing an interest of 83.55% of the total voting rights of the Company http://www.investegate.co.uk/article.aspx?id=200811200902315536I&fe=1
vanbrussel
14/11/2008
15:32
For once a decent update, the funding is still an issue but there looks to be considerable upside from this very depressed level. Mkt cap allowing for conversion of the warrants which are well out of the money is 3.5m. tin price is a big variable but a price of 14,000 a ton would still be higher than when the feasibility study was undertaken and the company have indicated that operatings costs may be lower because of the revised mining method. Quite a few big unknowns but could be a good punt, especially if sapphires can contribute revenue. Company though is not surprisingly largely ignored given recent events but I think this could be an opportunity, if the dilution from Galena is not too heavy. http://www.investegate.co.uk/article.aspx?id=200811141453042140I&fe=1
daz
14/11/2008
15:12
Not getting just tin and saphires and gold from this, but other metals
dispenser
28/10/2008
09:36
Wait and see, could be even better than current market conditions There is no institutional investor that will get in above 1.50 pence
vanbrussel
28/10/2008
09:13
Given that on of primary functions of the stock exchange is to allow companies to raise capital and that VDM are only aiming to raise a modest sum to get them into production in a matter of weeks/months rather than years case really shows the market is completely disfunctional at the moment. The contrast with a few years ago when virtually any mining company could raise money couldn't be starker. I can't understand why a couple of existing institutional investors can't stump up a few 100k to get the company into production and protect there investment. Galena have the company over a barrel and will drive a hard bargain, so it looks like the investors will get heavily diluted but at least it looks like the company will survive.
daz
28/10/2008
08:45
Extension to Bridging Loan (Van Dieman Mines) RNS Number : 8173G Van Dieman Mines plc 28 October 2008 28 October 2008 VAN DIEMAN MINES PLC (the "Company") Extension to Bridging Loan Van Dieman Mines Plc, (AIM:VDM), the AIM listed mining company with an alluvial tin and sapphire mine in Tasmania announces that it has secured a further extension to its short term bridging loan from Galena Special Situations Master Fund Limited ("Galena"), as announced on 26 August 2008 (the "Bridging Loan"). The extension is for an additional A$2,000,000 and has been granted on the same terms as the initial Bridging Loan and the further extension of A$250,000 as announced on 15 October 2008 (the "Additional Bridging Loans"). Due to current market conditions and the immediate cash requirements to meet the Company's current work programme the Company has decided not to pursue, at this time, the proposed equity fundraising, referred to in the circular sent to shareholders on 2 July 2008. Instead, the Company and Galena are in advanced discussions to re-finance the original loan facility of up to £5,000,000 granted on 30 June 2008 by Galena, the Bridging Loan and the Additional Bridging Loans by way of a new convertible loan note of up to £6,500,000. Further details regarding the proposed re-financing will be announced by the Company on entering into the relevant documentation. Related Party Transaction Galena is currently directly or indirectly interested in 18,455,000 Ordinary Shares in the Company representing an interest of 11.97 per cent in the total voting rights of the Company. Galena is therefore a substantial shareholder of the Company and considered to be a related party as defined under the AIM Rules for Companies (the "AIM Rules"). The grant of the latest extension to the bridging loan is classified as a related party transaction for the purposes of the AIM Rules. Accordingly, the Directors consider, having consulted with Grant Thornton UK LLP, in their capacity as the Company's nominated adviser, that the extension of the Bridging Loan is fair and reasonable insofar as the shareholders of the Company are concerned. Enquiries VAN DIEMAN MINES PLC Mike Etheridge, Chairman Tel: +61 (0) 4 0870 8778 Ron Goodman, CEO and Managing Director Tel: +61 (0) 4 0808 3914 GRANT THORNTON UK LLP Gerry Beaney / Fiona Owen Tel: +44 (0) 20 7383 5100 FOX DAVIES CAPITAL LIMITED Richard Hail, Corporate Finance Tel: +44 (0) 20 7936 5230
dispenser
28/10/2008
08:41
Well at least Galena still has confidence in VDM i cannot see that in these market conditions that they would throw more good money at VDM if they did not expect to get it back
dispenser
02/10/2008
12:19
MSartin I hope they are 10p in January but I wouldn`t put a bet on it.
tyranosaurus
29/9/2008
08:15
Looking forward to january, will they get back to 10p a share, which is my average.
m5artin
28/9/2008
14:32
RAB capitol part of or problem? VAN DIEMAN MINES PLC 18 Aug 2008 16.59% Shares held 25,585,000
dispenser
27/9/2008
10:40
From Minesite: Van Dieman Mans The Pumps At Scotia, Hoping For Full Production In January 2009 By Rob Davies Van Dieman Mines is one of a growing number of miners that have experienced major problems on starting up. In contrast to many of the other troubled miners though, Van Dieman seems to have successfully addressed the problems and is able to show some progress. The company has had a number of problems over the years, but the main one recently was a problem with a contained aquifer that made working conditions in the Scotia tin and sapphire mine very wet and forced the company to change its mining method. To address the problem the company has adopted the sump and pump method which new chief executive Ron Goodman says is now working well. This is dewatering the overburden and is expected to allow access to the orebody this month. He is keen to emphasise that the problem is not that the orebody is below the water table, so the approach taken is sensible. It's not as if they are attempting to pump Tasmania dry. The other issue that caused problems when the mine started was uncertainty about tin grades. Ron is pleased to report that confirmatory drilling started on last week on Monday after access was gained, and he expects to get the results in four to six weeks. Now that those two issues are being dealt with Ron Goodman and his team can focus on what mining is all about, getting the production started. The process plant has been modified to accept wet feed instead of dry feed and Ron says everything is on track to start production in December with full output now expected in January 2009. Commissioning of half the plant, known as Side B, will take place over the next two months on the first module. The second one, Side A, will be done in November and December. Each side has the capacity to process 300 cubic metres an hour. One further problem that's not yet been solved involves the parameters of the operating license. Not the geographical parameters, but the times it's allowed to operate. At the moment the mine only has permission from the authorities to operate for 12 hours a day, five days a week. To get the best return out of any capital equipment it needs to run all the time. To that end Ron says negotiations have begun with the authorities to apply for permission to run 24 hours a day, seven days a week. The biggest objection it seems is the noise issue, but Ron is optimistic that that can be resolved. The change of mining plan meant that the mine had more plant than it needed, and so Van Dieman has set out to sell the unwanted kit. These sales are going well, it seems, although Ron is keen to stress it is not a fire sale and the company will not undersell its assets. Finally, in a concrete demonstration of its commitment to cut costs the company is closing its head office and moving it down to Tasmania. Ron didn't have the exact figure on how much that would save but he reckoned offices in Gladstone were a whole lot cheaper than the ones in New South Wales which used to feature so prominently in Van Dieman promotional material. Like most junior stocks these days Van Dieman's shares are languishing at new lows, and with a market capitalisation of about £8 million it's well below most people's radar screen. Yet tin is one of the metals whose price has held up well and it is obvious that the management has a clear strategy to resolve the problems. Which, these days, is more than can be said of some others. http://www.minesite.com/nc/minews/singlenews/article/van-dieman-mans-the-pumps-at-scotia-hoping-for-full-production-in-january-2009/1.html
chipperfrd
26/9/2008
15:28
A buy now of £106,280 now shows that someone is either very brave, or knows something that we dont know. Lets hope that productin can be started before the placing in December
dispenser
26/9/2008
14:56
Perhaps we have finally turned the corner - although I would prefer some confirmation of 'resources' from the current drilling programme
pachandl
26/9/2008
13:03
Large buy gone through?
dispenser
26/9/2008
13:03
Van Dieman Mines Interim Results RNS Number : 3720E Van Dieman Mines plc 26 September 2008 26 September 2008 VAN DIEMAN MINES PLC (AIM: VDM) Interim Results Van Dieman Mines plc (AIM: VDM), the AIM listed mining company which is developing its 100% owned tin - sapphire mines in Tasmania, Australia, announces its Interim Results for the period ended 30 June 2008. Highlights: * Restructuring of Board and Company * Company to adopt a Revised Mine Development Plan for Scotia and Endurance Projects * Production at Scotia expected to commence in December 2008 * The Company has commenced initial 1000m of 5000m confirmation drilling programme * Loan facility of up to £5M from Galena Special Situations Master Fund Limited ("Galena") Post Period: * Review of Scotia Project completed * Tasmanian Government regulatory authorities have given approval to proceed with modified mining methods * Bridge Loan of £0.75M provided by Galena * Closure of the Company's Sydney office and relocation to Tasmania * Bill Wise and Harry Stacpoole, nominees of Galena, joined the Board on 29 August 2008 ENQUIRIES: VAN DIEMAN MINES plc Tel: +61 (0) 3 9528 3561 Ron Goodman, Managing Email: Director ron.goodman@ vandiemanmines.com GRANT THORNTON UK LLP Tel: +44 (0) 870 991 2318 Fiona Owen FOX-DAVIES CAPITAL LIMITED Tel: +44 (0) 20 7936 5230 Daniel Fox-Davies, Corporate Finance LOTHBURY FINANCIAL Tel: +44 (0) 20 7011 9405 Michael Padley / Libby Moss Chairman's Statement The six months to 30 June 2008 were particularly challenging for Van Dieman Mines, with a wholesale restructuring of the Board and Management of the Company, the departure of two of the founding Executive Directors, and the realisation that there were significant flaws in the mining and processing plan put in place by the previous operational management. In March 2008, the Board instituted a thorough review of all aspects of the Scotia Project and related operations. The initial outcomes of that review were announced to the market on 16 May 2008, and plans have been put in place to commence production at Scotia in December 2008. Progress During the First Half of 2008 There was significant progress in some site works early in 2008, with commencement of earthworks, dam construction and plant erection. However, it became increasingly clear that there were significant flaws in the original mining and processing plan, and in some critical aspects of the operational management. By March 2008, it had become apparent to the Board that the previously indicated end-Q1 production start date would not be met, resulting in the Board instituting a comprehensive review of all aspects of the Scotia Project. Prior to the commencement of the review, Clive Trist resigned as Chief Executive Officer and Managing Director of the Company, and was replaced by Ken Frey, previously Executive Director Marketing. Soon after commencement of the review, Neil Kinnane, Executive Director, Exploration and Operations, was removed from the Board of Van Dieman Mines and left the Company. Two of the site management team also left the company. Ron Goodman, who had joined the Board as a Non-Executive Director in October 2007, was appointed Executive Director, Operations to manage the review process and to report its findings and recommendations to the Board. Leading experts in the geology, mining and processing of alluvial deposits were commissioned to work with, and report to, Ron Goodman and the Mining Manager, Jim Semmens, who was appointed in January 2008. The review, which was reported upon in a press announcement on 16 May 2008, confirmed the concerns the Board had about the original Scotia Project design. The main findings of the operational review were that the proposed mining methods and significant components of the original process plant design for Scotia (and also planned for Endurance) were inappropriate, given the water-saturated characteristics encountered in initial pre-stripping of the overburden and pre-commissioning of the process plant. The Board carefully considered and accepted the initial findings and key recommendations of the review, which resulted in the adoption of a Revised Mine Development Plan. The revised plan will result in significant changes to aspects of mining and processing at both the Scotia and Endurance Projects. These will include examination and trialling of alternative and potentially simpler methods to deliver the "wet" ore from the mine to the plant. It also involves ongoing investigations to further reduce risk and to optimise the total mining operation, including drilling, dewatering, trial mining and bulk sampling. Some modifications will also be required to the Tin Shed Concentrating Facility. The Company expects that there will be material benefits to the Scotia and Endurance Projects that will result from the implementation of the Revised Mine Development Plan including reduced capital and operating costs. The current expectation is that overall capital costs may be reduced by an estimated A$4M to A$6M at the Scotia and Endurance Projects on the basis of expected disposal proceeds and termination of surplus equipment on order. Subject to the mining and ore transport methods finally adopted, operating costs are also expected to be lower, although those savings cannot be quantified until more information is available from the drilling, dewatering, trial mining and processing. The Board also accepted the conclusion from the Project Review that the basis upon which the previous management team determined the reserves and resources was not consistent with current best practice. This is largely because of the almost total reliance on drilling data that is 70 to 100 years old. The Company has therefore embarked on a limited (~5,000 m) confirmatory drilling programme. The proposed drilling programme will initially focus on the Scotia Project resource, and the Company has commenced an initial programme of ~1,000m covering the area of the initial phase of operations. Subsequent Events On 30 June 2008, the Company announced a loan facility of up to £5M from Galena Special Situations Master Fund Limited ('Galena'). Following shareholders approval of the relevant issuance authorities at the general meeting of 29 August 2008, Galena is now entitled to convert the first £3M into shares in Van Dieman Mines Plc at 6p per share. The balance of £2M is uncommitted. As previously announced, the Company intends to undertake a placement of shares prior to 31 December 2008. On 26 August 2008, the Company announced that a Bridge Loan of £0.75M had been made by Galena to provide additional working capital through to completion of the share placement. It is currently intended that the Bridge Loan be repaid from the share placement proceeds. On 6 August 2008, the Tasmanian Government regulatory authorities gave approval to proceed with the modified mining method. They will monitor progress via normal reporting and inspection procedures. The two principal government agencies involved have been very supportive, and the Company will work closely with them as the mine plan progresses and is further refined. As announced on 18 August 2008, the Board has appointed Ron Goodman, previously Executive Director, Operations, as CEO and Managing Director. Ron replaces Ken Frey who will retain a role in the development of the Company's sapphire joint venture. The Board thanks Ken for his commitment and energy during the challenging times over the last six months. The Board has taken this decision in recognition of the imperative for the Company to focus on the technical and operational challenges in bringing its Scotia and Endurance projects into production. Ken Frey decided not to stand for re-election at the Annual General Meeting ("AGM") of the Company and resigned from the Board at that time. Additionally, the Board has decided to close the Company's Sydney office and to transfer the bulk of the administration and financial control functions to Tasmania. The move, which will be completed over the coming months, will provide savings on overhead costs and allow for a more cohesive corporate structure for the day to day running of the Company. The Board has also identified a new CFO and Company Secretary, Ms Lisa Norden CPA, who will join the Company on 1 October 2008. On 29 August 2008, as previously announced, Bill Wise and Harry Stacpoole, as nominees of Galena, became Non-Executive Directors of Van Dieman Mines Plc. Looking Forward On 26 August 2008, the Company provided an operational update on the Scotia and Endurance Projects. Progress has been encouraging with the programme to progressively dewater and strip the overburden well underway, and planning to deliver ore to the primary process plants in a slurry form well in hand. Modifications have also been made to the primary process plant as it was originally designed to receive dry feed. Commissioning of one of the twin halves of the primary processing plant is expected to take place during October and November, with modifications to the second half of the plant to commence in October and final commissioning of the full plant in November and December. Production at Scotia is expected to commence in December 2008. The process of completing the loan facility over recent months and the consequent delay in accessing the Company's preferred contractor meant that drilling only commenced at Scotia in mid-September. This is highly specialised drilling and the Company, following a review of all other options, was committed to using this contractor because of the equipment and experience that they could provide. Initially, the Company will be limiting the planned drilling programme to about 1,000m, covering the area proposed for the initial phase of the operations. A processing, sampling and assay protocol for concentrate from these plants and samples from the proposed drilling programme has been agreed by the Company's operational management and a nearby assay laboratory. It is expected that the Company will achieve 1 to 2 week turnaround from drilling/bulk sampling to receiving the tin assay by undertaking much of the sample preparation on site. The Board is actively reviewing ways to significantly increase production rate and reduce production risk at Scotia following commissioning. Increasing production is important because the financial performance of the project, and the Company, are highly leveraged to increased production as revenues increase at a faster rate than do costs. The key components of the potential expanded production are access to multiple mining sites, increasing plant efficiency and throughput, and increasing mining and plant operating hours. All three of these are currently being addressed, and the Company is confident of a positive outcome. The Development Plan and Environmental Management Plan (DPEMP) for Endurance is under consideration by the Tasmanian government regulatory authorities, who understand that the mining method there is likely to change due to wet mining conditions. The Company will be reviewing mining options at Endurance as it learns from early mining and commissioning at Scotia. Your Board welcomes Galena as a strategic partner and is extremely grateful for their ongoing financial support. We are delighted to welcome Galena's nominees, Bill Wise and Harry Stacpoole, to the Board. I would also like to express my personal appreciation to my other two fellow directors, Ron Goodman and Nigel Christie , who have invested more time, energy and expertise into the Company than either considered they would when they joined the Board. Mike Etheridge Non-Executive Chairman VAN DIEMAN MINES PLC CONSOLIDATED INTERIM FINANCIAL STATEMENTS for the period ended 30 June 2008 CONSOLIDATED INTERIM INCOME STATEMENT Six months to Six months to Year to 30 June 2008 30 June 2007 31 December 2007 Note un-audited un-audited Audited £ £ £ Mining expenses (12,548) (15,774) (247,106) Depreciation expense (169,759) (57,066) (135,699) Impairment of plant & equipment 2(i) (564,061) - - Administrative expenses (1,285,036) (489,514) (1,611,369) (2,031,404) (562,354) (1,994,174) Interest received 49,535 81,086 48,699 Finance costs (138,069) - (23,646) Net financing income / (88,534) 81,086 25,053 (expense) Loss for period from (2,119,938) (481,268) (1,969,121) continuing operations Loss on non-current (117,154) - - assets held for re-sale Loss for the period (2,237,092) (481,268) (1,969,121) Basic and diluted loss per share 3 ( 1.45p) (0.52p) (1.82p) CONSOLIDATED INTERIM STATEMENT OF RECOGNISED INCOME AND EXPENSE Six months to Six months to Year to 30 June 2008 30 June 2007 31 December 2007 un-audited un-audited audited £ £ £ Exchange difference on 738,106 147,472 495,571 translation of foreign subsidy Loss for the period (2,237,092) (481,268) (1,969,121) Total recognised income and (1,498,986) (333,796) (1,473,550) expense for the period VAN DIEMAN MINES PLC CONSOLIDATED INTERIM FINANCIAL STATEMENTS for the period ended 30 June 2008 CONSOLIDATED INTERIM BALANCE SHEET Six months to Six months to Year to 30 June 2008 30 June 2007 31 December 2007 un-audited un-audited audited £ £ £ ASSETS Non-current assets Property, plant and equipment 8,086,387 2,847,578 6,224,896 Deferred exploration costs 2,515,000 2,757,195 2,227,393 Trade & other receivables 299,611 70,739 255,487 10,900,998 5,675,512 8,707,776 Current assets Trade and other receivables 288,516 41,270 302,422 Cash & cash equivalents 477,232 55,874 3,896,070 765,748 97,144 4,198,492 Non-current assets held for 1,780,746 - - re-sale Total assets 13,447,492 5,772,656 12,906,268 EQUITY Issued Capital 1,541,921 916,921 1,541,921 Share premium account 11,062,144 6,497,169 11,087,144 Warrant reserve 484,784 - 484,784 Translation reserve 1,352,996 266,791 614,890 Accumulated losses (6,386,503) (2,661,558) (4,149,411) Total equity 8,055,342 5,019,323 9,579,328 LIABILITIES Non-current liabilities Interest-bearing loans and 425,359 305,352 639,150 borrowings Current liabilities Interest-bearing loans and 2,259,808 95,450 1,959,193 borrowings Trade and other payables 1,523,176 352,531 728,597 3,782,984 447,981 2,687,790 Owing on non-current assets 1,183,807 - - held for re-sale Total liabilities 5,392,150 753,333 3,326,940 Total equity & liabilities 13,447,492 5,772,656 12,906,268 VAN DIEMAN MINES PLC CONSOLIDATED INTERIM FINANCIAL STATEMENTS for the period ended 30 June 2008 CONSOLIDATED INTERIM STATEMENT OF CHANGES OF EQUITY Share Share premium Warrant reserve Translation Accumulated losses Equity capital account reserve Total £ £ £ £ £ £ Balance at 916,921 6,497,169 119,319 (2,180,290) 5,353,119 1 January 2007 - Exchange differences - - 147,472 - 147,472 on translation of foreign operations - Loss for the period - - - - (481,268) (481,268) Balance as at 916,921 6,497,169 266,791 (2,661,558) 5,019,323 30 June 2007 - £ £ £ £ £ £ Balance at 1,541,921 11,087,144 614,890 (4,149,411) 9,579,328 1 January 2008 484,784 Exchange differences - - - 738,106 - 738,106 on translation of foreign operations Transaction costs - (25,000) - - - (25,000) Loss for the period - - - - (2,237,092) (2,237,092) Balance as at 1,541,921 11,062,144 484,784 1,352,996 (6,386,503) 8,055,342 30 June 2008 VAN DIEMAN MINES PLC CONSOLIDATED INTERIM FINANCIAL STATEMENTS for the period ended 30 June 2008 CONSOLIDATED INTERIM CASH FLOW STATEMENT Six months to Six months to Year to 30 June 2008 30 June 2007 31 December 2007 un-audited un-audited audited £ £ £ Cash flows from operating activities Loss after taxation (2,148,558) (481,268) (1,994,174) Adjustments for Depreciation 169,759 57,066 135,699 Interest Paid (138,069) - (23,646) Decrease/(Increase) in trade (30,218) (37,139) (256,395) and other receivables Increase/(Decrease) in trade 978,282 23,393 168,384 payables Net cash used in (1,168,804) (1,970,132) operating activities (437,948) Cash flows from investing activities Acquisition of property, plant (2,578,791) (862,487) (2,699,318) and equipment and exploration costs Interest received 49,535 81,086 48,699 Net cash used in investing (2,529,256) (781,401) (2,650,619) activities Cash flows from financing activities Proceeds from other loans 480,885 - 1,634,913 Proceeds from issue of share - - 6,324,000 capital Transaction costs (25,000) - (624,241) Payment of finance lease & (304,460) (58,576) (228,344) hire purchase liabilities Net cash used provided from 151,425 (58,576) 7,106,328 financing activities Net increase / (decrease) in (3,546,635) (1,277,925) 2,485,577 cash and cash equivalents Foreign exchange movement 127,797 (41,799) 34,895 Cash and cash equivalents 3,896,070 1,375,598 1,375,598 at beginning of period Cash and cash equivalents 477,232 55,874 3,896,070 at end of period VAN DIEMAN MINES PLC NOTES TO THE UNAUDITED INTERIM FINANCIAL STATEMETNS FOR THE SIX MONTHS TO 30 JUNE 2008 General Information Van Dieman Mines Plc ("the Company") is a company incorporated in England and Wales under the Companies act 1985. The Company's registered office is 27/28 Eastcastle Street, London, WIW 8DH. The principal activity of the Company and its subsidiary ("the Group") is the exploration for tin and sapphires and to develop and operate mining activities in Northern Tasmania, Australia. The Group's principal activity is carried out in Australian dollars. The interim results are presented in British Pounds as this is the currency of the country (the UK) from which the Group operates. 1. Application of the going concern basis The Group's ability to continue as a going concern and develop and operate its mining activities are primarily dependent upon its ability to fund its development and exploration programmes and to manage and generate positive cash flows from operations in the future, which will be significantly affected by tin and sapphire prices. The Directors have carried out a review of the Scotia Project, and adopted a Revised Mine Development Plan. The Board concluded that further finance was required to complete development of the Scotia and Endurance mines and provide adequate working capital until the Group achieves positive operating cash flows. On 30 June 2008 the Company made an announcement concerning a Loan Facility of up to £3 million from Galena Special Situations Master Fund Limited ("Galena") which may be extended at Galena's discretion by up to a further £2 million (see www.vandiemanmines.com). The announcement included the following key information: * Galena granted an immediate loan facility, subject to certain conditions set out below, of up to £3 million, to be drawn down in part to fund the Company's immediate working capital requirements, at the sole discretion of Galena (the "Loan Facility"). Under the terms of the facility agreement a further £2 million may be drawn down at the discretion of Galena to the extent that the Company is not able to raise that sum through an equity issue. * The Loan Facility was conditional upon the Australian Foreign Investment Review Board ("FIRB") consenting to Galena taking registered security over the assets of the Company and Van Dieman Mines Pty Ltd. Consent was received from the FIRB on 9 July 2008. The Loan Facility is also subject to the shareholders of the Company passing the resolutions at the general meeting of the company on 29 August 2008 ("General Meeting"). * At the General Meeting, resolutions increasing the authorised share capital of the Company and increasing the Directors' authorities under sec The Directors have therefore concluded that it is appropriate to prepare accounts on the going concern basis. However, there can be no certainty that the fund raising will be sufficient and, as with many projects of this nature, there remain significant uncertainties as to the timing and amount of forecast cash flows. These financial statements do not reflect the adjustments to carrying values of assets and liabilities and the reported expenses and balance sheet classifications that would be necessary should the going concern assumption be inappropriate, and these adjustments could be material. 2. Significant accounting policies The consolidated financial statements of the Company for the 6 months ended 30 June 2008 comprise the Company and its subsidiary. (a) Basis of preparation The financial statements are presented in British Pounds, rounded to the nearest Pound. The interim results have been prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting". The annual financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS). The interim financial statements have been prepared under the historical cost convention. The financial information is in conformity with generally accepted accounting principles and requires the use of estimates and assumptions that affect the reported amounts of revenues and expenses during the reporting period. Although these estimates are based in management's best knowledge of the amount, event or actions, actual results ultimately may differ from those estimates. The financial statements do not constitute statutory accounts within the meaning of Section 240 of the Companies Act 1985. They have been prepared on a going concern basis in accordance with the International Reporting Standards. The accounting policies applied in preparing the financial statements consistent with those that were adopted in the Group's 2007 statutory accounts. The financial statements for the periods ended 30 June 2008 and 30 June 2007 have not been audited. The principal accounting policies adopted are set out below. (b) Basis of consolidation (i) Subsidiary A subsidiary is an entity controlled by the Company. Control exists when the Company has the power, directly or indirectly, to govern the financial and operating policies of an entity so as to obtain benefits from its activities. In assessing control, potential voting rights that presently are exercisable or convertible are taken into account. The financial statements of the subsidiary are included in the consolidated financial statements from the date that control commences until the date that control ceases. (ii) Transactions eliminated on consolidation Intra-group balances and any unrealised gains and losses or income and expenses arising from intra-group transactions, are eliminated in preparing the consolidated financial statements. (c) Foreign currency (i) Functional and presentation currency Items included in the financial statements of each of the Group's entities are measured using the currency of the primary economic environment in which the entity operates ("the functional currency"). The consolidated financial statements are presented in British Pounds, which is the Group's presentation currency and the functional currency of the Company. Transactions in foreign currencies are translated into functional currency at the foreign exchange rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are translated into the functional currency at the foreign exchange rate ruling at that date. Foreign exchange differences arising on translation are recognised in the income statement. Non-monetary assets and liabilities that are measured in terms of historical cost in a foreign currency are translated using the exchange rate at the date of the transaction. (ii) Financial statements of foreign operations The assets and liabilities of foreign operations are translated to British Pounds at foreign exchange rates ruling at the balance sheet date. The revenues and expenses of foreign operations are translated to British Pounds at rates approximating to the foreign exchange rates ruling at the dates of the transactions. (iii) Net investment in foreign operations Exchange differences arising from the translation of the net investment in foreign operations are taken to translation reserve. They are released into the income statement upon disposal. (d) Property, plant and equipment (i) Owned assets Items of property, plant and equipment are stated at cost. The cost of self-constructed assets includes the cost of materials, direct labour, the initial estimate, where relevant, of the costs of dismantling and removing the items and restoring the site on which they are located. Where parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items of property, plant and equipment. (ii) Leased assets Leases in terms of which the Group assumes substantially all the risks and rewards of ownership are classified as finance leases. (iii) Subsequent costs The Group recognises in the carrying amount of an item of property, plant and equipment the cost of replacing part of such an item when that cost is incurred if it is probable that the future economic benefits embodied with the item will flow to the Group and the cost of the item can be measured reliably. All other costs are recognised in the income statement as an expense as incurred. (iv) Depreciation Depreciation is charged to the income statement or capitalised as part of the exploration and evaluation costs where appropriate, on a straight-line basis over the estimated useful lives of each part of an item of property, plant and equipment. Land is not depreciated. The estimated useful lives are as follows: * buildings 40 years * mining plant and equipment 3 to 15 years * motor vehicles 7 years * computer equipment 3 years * fixtures, fittings and equipment 3 years Depreciation is not charged on mining plant and equipment until mining activities have commenced. (e) Non-current assets held for sale The Group, in adopting a revised mine development plan, holds plant and equipment surplus to its needs. Buyers for this surplus plant and equipment are being actively sought. A fair market value has been established by the Group. Non-current assets held for sale, are valued at the lower of carrying amount and fair value, less costs to sell. (f) Intangible assets (i) Exploration and evaluation costs These comprise costs directly incurred in exploration and evaluation as well as the cost of mineral licences. Once local title to the project area is obtained, exploration and evaluation costs are capitalised as intangible assets pending determination of the feasibility of the project. When the existence of economically recoverable reserves is established the related intangible assets are reclassified as mine development costs. Capitalised exploration expenditures are reviewed for impairment losses. Impairment reviews for deferred exploration and evaluation costs are carried out on a project by project basis, with each project representing a potential single cash generating unit. An impairment review is undertaken when indicators of impairment arise but typically when one of the following circumstances apply: * unexpected geological occurrences that render the resource uneconomic; * title to the asset is compromised; * variations in metal prices that render the project uneconomic; and * variations in the currency of operation. Where a project is abandoned or is determined not to be economically viable, the related costs are written off. The recoverability of deferred exploration and evaluation costs is dependent upon a number of factors common to the natural resource sector. These include the extent to which the Group can establish economically recoverable reserves on its properties, the ability of the Group to obtain necessary financing to complete the development of such reserves and future profitable production or proceeds from the disposition thereof. (ii) Subsequent expenditure Subsequent expenditure on capitalised intangible assets is capitalised only when it increases the future economic benefits embodied in the specific asset to which it relates. All other expenditure is expensed as incurred. (g) Trade and other receivables Trade and other receivables are stated at amortised cost. (h) Cash and cash equivalents Cash and cash equivalents comprise cash balances and call deposits. Bank overdrafts that are repayable on demand and form an integral part of the Group's cash management are included as a component of cash and cash equivalents for the purpose of the statement of cash flows. (i) Impairment The carrying amounts of the Group's assets (except deferred tax assets - see accounting policy (m)), are reviewed at each balance sheet date to determine whether there is any indication of impairment. If any such indication exists, the asset's recoverable amount is estimated - see accounting policy (i)(i). An impairment loss is recognised whenever the carrying amount of an asset or its cash-generating unit exceeds its recoverable amount. Impairment losses are recognised in the income statement. As a result of mine plant modifications in line with the current revision of the mine plan, costs incurred to date were reviewed and have resulted in an impairment loss of £564,061 being written off in the Income Statement for the period ended 30 June 2008. Impairment losses recognised in respect of cash-generating units are allocated first to reduce the carrying amount of any goodwill allocated to cash-generating units (group of units) and then, to reduce the carrying amount of the other assets in the unit (group of units) on a pro rata basis. Deferred exploration and evaluation costs are reviewed for impairment in accordance with accounting policy (f)(i). (i) Calculation of recoverable amount The recoverable amount of other assets is the greater of their net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. For an asset that does not generate largely independent cash inflows, the recoverable amount is determined for the cash-generating unit to which the asset belongs. (ii) Reversals of impairment In respect of other assets, an impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset's carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised. (j) Provisions A provision is recognised in the balance sheet when the Group has a present legal or constructive obligation as a result of a past event, and it is probable that an outflow of economic benefits will be required to settle the obligation. If the effect is material, provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and, where appropriate, the risks specific to the liability. (k) Trade and other payables Trade and other payables are stated at amortised cost. (l) Expenses (i) Operating lease payments Payments made under operating leases are recognised in the income statement on a straight-line basis over the term of the lease. Lease incentives received are recognised in the income statement as an integral part of the total lease expense. (ii) Finance lease payments Minimum lease payments are apportioned between the finance charge and the reduction of the outstanding liability. The finance charge is allocated to each period during the lease term so as to produce a constant periodic rate of interest on the remaining balance of the liability. (iii) Borrowing costs Borrowing costs are recognised in the income statement. (m) Income tax Income tax on the profit or loss for the year comprises current and deferred tax. Income tax is recognised in the income statement except to the extent that it relates to items recognised directly in equity, in which case it is recognised in equity. Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted at the balance sheet date, and any adjustment to tax payable in respect of previous years. Deferred tax is provided using the balance sheet liability method, providing for temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. The following temporary differences are not provided for: the initial recognition of assets or liabilities that affect neither accounting nor taxable profit, and differences relating to investments in subsidiaries to the extent that they will probably not reverse in the foreseeable future. The amount of deferred tax provided is based on the expected manner of realisation or settlement of the carrying amount of assets and liabilities, using tax rates enacted or substantively enacted at the balance sheet date. A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available against which the asset can be utilised. Deferred tax assets are reduced to the extent that it is no longer probable that the related tax benefit will be realised. Additional income taxes that arise from the distribution of dividends are recognised at the same time as the liability to pay the related dividend. (n) Mine development costs Exploration costs are capitalised as intangible fixed assets until a decision is made to proceed to development. Related costs are transferred to mine development costs. Before reclassification, exploration costs are assessed for impairment and any impairment loss recognised in the income statement. Subsequent development costs are capitalised under mining assets, together with any amounts transferred from intangible exploration assets. Mining assets are amortised over the estimated life of the commercial ore reserves on a unit of production basis. (o) Share based payments The Group has applied the requirements of IFRS2 in respect of warrants issued in consideration of capital raising costs incurred during the year and which have been credited to the warrant reserve. The fair value of services received in return for warrants granted is measured by reference to the fair value of the warrants issued, at date of issue. This estimate is determined using an appropriate valuation model considering the effects of the exercise conditions, expected exercise period and the payment of dividends by the Company. 3. Earnings/(Loss) Six months to Six months to 30 June 2008 30 June 2007 £ £ Basic loss per share (1.45p) (0.52p) The calculation of basic loss per share is based on a loss for the period of £2,237,092 (2007:£481,268) and 154,192,107 ordinary shares (2007: 91,692,107 ordinary shares), being the weighted average number of ordinary shares in issue during the period. 4. Capital commitments The Company has committed to purchase plant and equipment from a United States supplier with a total contract value of £896,424. At 30 June 2008, the Company had paid a total of £519,786 against this contract. Upon completion of plant construction in the United States to contract specification, 95% of the total contract value is payable, the remaining 5% being retained until erection and final commissioning of the plant in Tasmania. This information is provided by RNS The company news service from the London Stock Exchange END
dispenser
09/9/2008
15:34
I found the video most informative.
m5artin
09/9/2008
07:20
New Star accumulating...
vermilion1966
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