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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Archipelago Res | LSE:AR. | London | Ordinary Share | GB0033551721 | ORD 1P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 57.75 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
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TIDMAR.
RNS Number : 5815T
Archipelago Resources PLC
30 September 2010
30 September 2010
ARCHIPELAGO RESOURCES PLC
("Archipelago" or "the Company")
Interim Report for the Six Months ended 30 June 2010
Archipelago Resources (AIM: AR.) the South East Asian gold explorer and
developer, announces its interim results for the six months ended 30 June 2010.
KEY POINTS
* Consolidated net loss US$2.21m (H1 09: US$1.44m)
* Heavy rains contribute to delays to production at Toka Tindung Gold Project in
North Sulawesi to end Q1 2011
* Production target for 2011 of 125,000 oz gold equivalent
* 1,502 workforce currently on site
* Archipelago is debt and hedge free
Colin Loosemore, Chief Executive of Archipelago commented: "'Delays were to be
expected after heavy storms in the Sulawesi region of Indonesia. However, the
increase in gold price has been extremely kind to us pushing up profit
projection since we modelled the mine on a $1,000 gold price. I am confident
we can shortly complete additional funding arrangements to bring the project
into production in early 2011."
+-----------------------+----------------------+------------------+
| Colin Loosemore | Archipelago | Tel: |
| | Resources Plc. | 00-618-9364-8301 |
+-----------------------+----------------------+------------------+
| Shaun Whyte / Richard | Ambrian Partners Ltd | Tel: |
| Swindells | | 020-7634-4700 |
| | | |
+-----------------------+----------------------+------------------+
| Gerry Beaney / Fiona | Grant Thornton | Tel: 020 7383 |
| Kindness | Corporate Finance | 5100 |
| | | |
+-----------------------+----------------------+------------------+
| Justine James / John | Hansard | Tel: 020 7245 |
| Greenhalgh | Communications | 1100 |
| | | |
+-----------------------+----------------------+------------------+
www.archipelagoresources.com.au
CHIEF EXECUTIVE OFFICER'S STATEMENT
Results and Dividend
The consolidated loss for the half year after taxation amounted to US$2,210,261
(2009: US$1,436,551). No dividends have been paid or proposed.
The Company is debt and hedge free.
Review of Business
Archipelago Resources Plc holds an 85% interest in its flagship Toka Tindung
Gold Project in North Sulawesi, Indonesia ("the Project"). The Project has a
defined resource of 1.7 million ounces ("oz") of gold equivalent of which 1.1
million oz will initially be mineable by open pit. The Company is well advanced
in development of the Project.
In accordance with the Construction Phase status, previously decreed in March
2008 by the Director General of the Ministry of Energy and Mineral Resources
("ESDM"), the Company via its Indonesian operating companies MSM and TTN,
contracted experienced mining contractor Leighton Asia to undertake mining of
the Toka Tindung open pits and construction of the tailings storage facility
("TSF"). Similarly PT McConnell Dowell Indonesia was contracted to undertake
construction of the processing plant and ancillary facilities.
Unseasonally heavy rain during what is normally the dry season has considerably
delayed the mining and compacting of clay to stringent engineering requirements
in the TSF. Similarly construction has been delayed in part because of the
weather and in part because of construction management issues.
As a result, commissioning of the processing plant will now commence in the
first quarter 2011 and first gold production is targeted for end first quarter
2011. Currently there are 1,502 persons at site of which 220 are engaged in
mining and 535 in construction with the remainder in environment, security,
operations, administration and services. Of the total workforce, 38% are local,
22% are from the region, 38% are national and 2% are foreign.
Mining at Toka Tindung will be by way of five open pits with processing through
a centralised processing plant. The mineralogy of the Toka Tindung deposits is
simple with indicated gold recoveries of approximately 94%. Production is
targeted for an average annual rate of 160,000 oz/annum gold equivalent over the
first 6 years of the initial 8 year project life, with production in calendar
year 2011 now targeted for 125,000 oz of gold equivalent.
The Project continues to enjoy strong government support at all levels and
locally the operation has already had a major positive impact on employment and
training opportunities for local people. In addition the Company has expanded
its support for local communities by way of further assistance with education,
water supply, health, street lighting and sustainable business projects.
In February the Company announced that it had placed 102 million shares at a
price of 30 pence per share to major shareholders including PT Rajawali
Corporation ("Rajawali") and institutional investors including Columbia Wanger
and BlackRock to raise approximately GBP30 million net to allow re-activation of
the mining contract and re-commencement of construction at Toka Tindung.
On 14th April 2010, the Company announced that major shareholder Indonesian
company Rajawali, had purchased 57m shares in the Company from Baker Steel Funds
("Baker Steel"). As a result of this transaction and the subsequent purchase by
Rajawali of an additional 5,200,100 shares from a director, Rajawali hold
257,336,800 and Baker Steel hold 47,594,620 shares representing 52.2% and 9.6%
respectively of the 493,019,334 shares in issue with a further 11 beneficial
shareholders with holdings of greater than 1% representing in aggregate an
additional 28.6%.
The Company is considering its options in relation to the raising of funding
necessary to complete construction of the processing plant, meet mining and
processing operating costs until the project is cash flow positive, meet
exploration and Corporate operating costs and provide appropriate working
capital. In relation to this, the Company is in discussions with prospective
financiers and an announcement in relation to this matter will be released
shortly.
By order of the board
J C Loosemore
Managing Director
29 September 2010
ARCHIPELAGO RESOURCES PLC
INCOME STATEMENT
for the 6 months ended 30 June 2010
+---------------------------------------+-------+-------------+-------------+
| | | Half-Year | Half-Year |
| | | ended | ended |
+---------------------------------------+-------+-------------+-------------+
| | | 30 June | 30 June |
| | | 2010 | 2009 |
+---------------------------------------+-------+-------------+-------------+
| | | US$ | US$ |
+---------------------------------------+-------+-------------+-------------+
| |Notes | | |
+---------------------------------------+-------+-------------+-------------+
| | | | |
+---------------------------------------+-------+-------------+-------------+
| REVENUE | | - | - |
+---------------------------------------+-------+-------------+-------------+
| | | | |
+---------------------------------------+-------+-------------+-------------+
| Cost of sales | | - | - |
+---------------------------------------+-------+-------------+-------------+
| | | | |
+---------------------------------------+-------+-------------+-------------+
| GROSS PROFIT | | - | - |
+---------------------------------------+-------+-------------+-------------+
| | | | |
+---------------------------------------+-------+-------------+-------------+
| Other income | 3 | 50,361 | 5,441 |
+---------------------------------------+-------+-------------+-------------+
| | | | |
+---------------------------------------+-------+-------------+-------------+
| Administrative expenses | 3 | (2,260,209) | (1,344,791) |
+---------------------------------------+-------+-------------+-------------+
| Exploration expenditure written off | | - | - |
+---------------------------------------+-------+-------------+-------------+
| | | | |
+---------------------------------------+-------+-------------+-------------+
| OPERATING (LOSS)/GAIN | | (2,209,848) | (1,339,350) |
+---------------------------------------+-------+-------------+-------------+
| | | | |
+---------------------------------------+-------+-------------+-------------+
| Gain on sale of assets | | - | 67 |
+---------------------------------------+-------+-------------+-------------+
| Finance Costs | | (413) | (97,268) |
+---------------------------------------+-------+-------------+-------------+
| | | | |
+---------------------------------------+-------+-------------+-------------+
| (LOSS)/GAIN ON ORDINARY ACTIVITIES BEFORE | (2,210,261) | (1,436,551) |
| TAXATION | | |
+-----------------------------------------------+-------------+-------------+
| | | | |
+---------------------------------------+-------+-------------+-------------+
| Taxation Expense | | - | - |
+---------------------------------------+-------+-------------+-------------+
| | | | |
+---------------------------------------+-------+-------------+-------------+
| (LOSS)/GAIN ON ORDINARY ACTIVITIES AFTER | (2,210,261) | (1,436,551) |
| TAXATION | | |
+-----------------------------------------------+-------------+-------------+
| | | | |
+---------------------------------------+-------+-------------+-------------+
| RETAINED (LOSS)/GAIN FOR THE YEAR | | (2,210,261) | (1,436,551) |
+---------------------------------------+-------+-------------+-------------+
| | | | |
+---------------------------------------+-------+-------------+-------------+
| (Loss) / earnings per share - | 4 | (0.005) | (0.006) |
| basic | | | |
+---------------------------------------+-------+-------------+-------------+
| (Loss) / earnings per share - | 4 | (0.005) | (0.005) |
| diluted | | | |
+---------------------------------------+-------+-------------+-------------+
There are no other recognised gains and losses other than those shown above.
All the Group's activities consist of continuing operations.
ARCHIPELAGO RESOURCES PLC
BALANCE SHEET
for the 6 months ended 30 June 2010
+---------------------------------------+----------+---------------------------------------+--------------+
| | | Half-Year | Half-Year |
| | | ended | ended |
+ + +---------------------------------------+--------------+
| | | 30 June 2010 | 30 June |
| | | | 2009 |
+ + +---------------------------------------+--------------+
| | | US$ | US$ |
+---------------------------------------+----------+---------------------------------------+--------------+
| | | | |
+---------------------------------------+----------+---------------------------------------+--------------+
| | | | |
+---------------------------------------+----------+---------------------------------------+--------------+
| NON - CURRENT ASSETS | | | |
+---------------------------------------+----------+---------------------------------------+--------------+
| Property plant and equipment | | 69,504,618 | 53,232,417 |
+---------------------------------------+----------+---------------------------------------+--------------+
| Development, exploration and | | 37,917,200 | 28,922,630 |
| evaluation | | | |
+---------------------------------------+----------+---------------------------------------+--------------+
| Prepaid borrowing costs | | 16,289 | 26,943 |
+---------------------------------------+----------+---------------------------------------+--------------+
| Investments | | 451,015 | 485,352 |
+---------------------------------------+----------+---------------------------------------+--------------+
| | | | |
+---------------------------------------+----------+---------------------------------------+--------------+
| | | 107,889,122 | 82,758,342 |
+---------------------------------------+----------+---------------------------------------+--------------+
| | | | |
+---------------------------------------+----------+---------------------------------------+--------------+
| CURRENT ASSETS | | | |
+---------------------------------------+----------+---------------------------------------+--------------+
| Inventories | | 733,124 | 252,175 |
+---------------------------------------+----------+---------------------------------------+--------------+
| Trade and other receivables | | 2,850,078 | 781,832 |
+---------------------------------------+----------+---------------------------------------+--------------+
| Prepayments | | 171,440 | 33,346 |
+---------------------------------------+----------+---------------------------------------+--------------+
| Derivative financial instruments | | - | - |
+---------------------------------------+----------+---------------------------------------+--------------+
| Cash and cash equivalents | | 38,750,745 | 3,891,699 |
+---------------------------------------+----------+---------------------------------------+--------------+
| | | | |
+---------------------------------------+----------+---------------------------------------+--------------+
| | | 42,505,387 | 4,959,052 |
+---------------------------------------+----------+---------------------------------------+--------------+
| | | | |
+---------------------------------------+----------+---------------------------------------+--------------+
| | | | |
+---------------------------------------+----------+---------------------------------------+--------------+
| TOTAL ASSETS | | 150,394,509 | 87,717,394 |
+---------------------------------------+----------+---------------------------------------+--------------+
| | | | |
+---------------------------------------+----------+---------------------------------------+--------------+
| | | | |
+---------------------------------------+----------+---------------------------------------+--------------+
| EQUITY | | | |
+---------------------------------------+----------+---------------------------------------+--------------+
| Share capital | | 8,143,197 | 5,194,236 |
+---------------------------------------+----------+---------------------------------------+--------------+
| Share premium account | | 163,579,736 | 103,489,654 |
+---------------------------------------+----------+---------------------------------------+--------------+
| Reserves | | 3,824,631 | 3,617,572 |
+---------------------------------------+----------+---------------------------------------+--------------+
| Accumulated losses | | (30,344,203) | (27,014,553) |
+---------------------------------------+----------+---------------------------------------+--------------+
| | | | |
+---------------------------------------+----------+---------------------------------------+--------------+
| TOTAL EQUITY | | 145,203,362 | 85,286,909 |
+---------------------------------------+----------+---------------------------------------+--------------+
| | | | |
+---------------------------------------+----------+---------------------------------------+--------------+
| | | | |
+---------------------------------------+----------+---------------------------------------+--------------+
| CURRENT LIABILITIES | | | |
+---------------------------------------+----------+---------------------------------------+--------------+
| Trade and other payables | | 4,341,971 | 1,826,634 |
+---------------------------------------+----------+---------------------------------------+--------------+
| Provisions | | 849,176 | 603,851 |
+---------------------------------------+----------+---------------------------------------+--------------+
| Borrowings | | - | - |
+---------------------------------------+----------+---------------------------------------+--------------+
| | | | |
+---------------------------------------+----------+---------------------------------------+--------------+
| TOTAL LIABILITIES | | 5,191,147 | 2,430,485 |
+---------------------------------------+----------+---------------------------------------+--------------+
| | | | |
+---------------------------------------+----------+---------------------------------------+--------------+
| | | | |
+---------------------------------------+----------+---------------------------------------+--------------+
| TOTAL EQUITY AND LIABILITIES | | 150,394,509 | 87,717,394 |
+---------------------------------------+----------+---------------------------------------+--------------+
ARCHIPELAGO RESOURCES PLC
STATEMENTS OF CHANGES IN EQUITY
for the 6 months ended 30 June 2010
+-------------------------------+-----------+-------------+-----------+--------------+---------------+
| | Share | Share | Other | Accumulated | |
+-------------------------------+-----------+-------------+-----------+--------------+---------------+
| | capital | premium | reserves | losses | Total |
+-------------------------------+-----------+-------------+-----------+--------------+---------------+
| | US$ | US$ | US$ | US$ | US$ |
+-------------------------------+-----------+-------------+-----------+--------------+---------------+
| | | | | | |
+-------------------------------+-----------+-------------+-----------+--------------+---------------+
| Total equity at the beginning | 6,576,877 | 118,692,795 | 3,824,631 | (28,133,942) | 100,960,362 |
| of the half-year | | | | | |
+-------------------------------+-----------+-------------+-----------+--------------+---------------+
| | | | | | |
+-------------------------------+-----------+-------------+-----------+--------------+---------------+
| Shares issued | 1,566,320 | 45,423,268 | - | - | 46,989,588 |
+-------------------------------+-----------+-------------+-----------+--------------+---------------+
| Share issue costs | - | (536,327) | - | - | (536,327) |
+-------------------------------+-----------+-------------+-----------+--------------+---------------+
| Employee options | - | - | - | - | - |
+-------------------------------+-----------+-------------+-----------+--------------+---------------+
| Other options | - | - | - | - | - |
+-------------------------------+-----------+-------------+-----------+--------------+---------------+
| Exchange differences on | - | - | - | - | - |
| translation of foreign | | | | | |
| operations | | | | | |
+-------------------------------+-----------+-------------+-----------+--------------+---------------+
| Loss for the half-year | - | - | - | (2,210,261) | (2,210,261) |
+-------------------------------+-----------+-------------+-----------+--------------+---------------+
| | 8,143,197 | 163,579,736 | 3,824,631 | (30,344,203) | 145,203,362 |
+-------------------------------+ + + + + +
| Total equity at the end of | | | | | |
| the half-year | | | | | |
+-------------------------------+-----------+-------------+-----------+--------------+---------------+
| | | | | | |
+-------------------------------+-----------+-------------+-----------+--------------+---------------+
ARCHIPELAGO RESOURCES PLC
CONSOLIDATED STATEMENT OF CASHFLOWS
for the 6 months ended 30 June 2010
+---------------------------------------+---------------------------------------+--------------+-------------+
| | | |
+---------------------------------------+---------------------------------------+----------------------------+
| | | Half-Year | Half-Year |
| | | ended | ended |
+ +---------------------------------------+--------------+-------------+
| | | 30 June | 30 June |
| | | 2010 | 2009 |
+ +---------------------------------------+--------------+-------------+
| | Notes | US$ | US$ |
+---------------------------------------+---------------------------------------+--------------+-------------+
| | | | |
+---------------------------------------+---------------------------------------+--------------+-------------+
| NET CASH OUTFLOW FROM OPERATING | 6 | (1,447,884) | (1,889,864) |
| ACTIVITIES | | | |
+---------------------------------------+---------------------------------------+--------------+-------------+
| | | | |
+---------------------------------------+---------------------------------------+--------------+-------------+
| CASH FLOWS FROM INVESTING ACTIVITIES | | | |
+---------------------------------------+---------------------------------------+--------------+-------------+
| Payments to acquire property, plant | | (14,233,901) | (889,624) |
| and equipment | | | |
+---------------------------------------+---------------------------------------+--------------+-------------+
| Payments for development, exploration | | (4,560,840) | (1,658,674) |
| and evaluation expenditure | | | |
+---------------------------------------+---------------------------------------+--------------+-------------+
| Proceeds from sale of property, plant | | - | 67 |
| and equipment | | | |
+---------------------------------------+---------------------------------------+--------------+-------------+
| Proceeds from sale of investments | | - | - |
+---------------------------------------+---------------------------------------+--------------+-------------+
| Interest paid | | (413) | (97,268) |
+---------------------------------------+---------------------------------------+--------------+-------------+
| | | | |
+---------------------------------------+---------------------------------------+--------------+-------------+
| NET CASH USED IN INVESTMENT | | (18,795,154) | (2,645,499) |
| ACTIVITIES | | | |
+---------------------------------------+---------------------------------------+--------------+-------------+
| | | | |
+---------------------------------------+---------------------------------------+--------------+-------------+
| CASH FLOWS FROM FINANCING ACTIVITIES | | | |
+---------------------------------------+---------------------------------------+--------------+-------------+
| Issue of ordinary share capital | | 46,453,261 | 13,566,613 |
+---------------------------------------+---------------------------------------+--------------+-------------+
| New short term loans | | - | - |
+---------------------------------------+---------------------------------------+--------------+-------------+
| Repayment of loans | | - | (6,500,000) |
+---------------------------------------+---------------------------------------+--------------+-------------+
| Loan to related party | | (4,614) | (302,455) |
+---------------------------------------+---------------------------------------+--------------+-------------+
| Prepaid borrowing costs | | (179,931) | (26,943) |
+---------------------------------------+---------------------------------------+--------------+-------------+
| | | | |
+---------------------------------------+---------------------------------------+--------------+-------------+
| NET CASH FROM FINANCING ACTVITIES | | 46,268,716 | 6,737,215 |
+---------------------------------------+---------------------------------------+--------------+-------------+
| | | | |
+---------------------------------------+---------------------------------------+--------------+-------------+
| Effect of change in exchange rates on | | 168,946 | 25,938 |
| cash and cash equivalents | | | |
+---------------------------------------+---------------------------------------+--------------+-------------+
| | | | |
+---------------------------------------+---------------------------------------+--------------+-------------+
| NET (DECREASE) / INCREASE IN CASH AND | | 26,194,624 | 2,227,790 |
| CASH EQUIVALENTS | | | |
+---------------------------------------+---------------------------------------+--------------+-------------+
| | | | |
+---------------------------------------+---------------------------------------+--------------+-------------+
| CASH AND CASH EQUIVALENTS AT START OF | | 12,556,121 | 1,663,909 |
| PERIOD | | | |
+---------------------------------------+---------------------------------------+--------------+-------------+
| | | | |
+---------------------------------------+---------------------------------------+--------------+-------------+
| | | | |
+---------------------------------------+ +--------------+-------------+
| CASH AND CASH EQUIVALENTS AT END OF | | 38,750,745 | 3,891,699 |
| PERIOD | | | |
+---------------------------------------+---------------------------------------+--------------+-------------+
NOTES TO THE INTERIM RESULTS
1. accounting policies
Basis of preparation
The financial statements have been prepared in accordance with International
Financial Reporting Standards adopted by the European Union and comply with the
Companies Act 2006.
At the date of authorisation of these financial statements, there were Standards
and Interpretations that were in issue but not yet effective that have not been
applied in these financial statements. The Directors anticipate that the
adoption of these Standards and Interpretations in future periods will have no
material impact on the financial statements of the Group or Company, except for
additional disclosures when the relevant Standards come into effect.
The preparation of financial statements in conformity with generally accepted
accounting principles requires the use of estimates and assumptions that affect
the reported amounts of assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period. Although these estimates are based on management's best
knowledge of the amounts, events or actions, actual results ultimately may
differ from those estimates.
The financial statements have been prepared on the historical cost basis. The
principal accounting policies adopted are set out below.
The financial statements have been prepared on the going concern basis, assuming
the Group and the Company to continue as going concerns, and therefore realise
their assets and extinguish their liabilities in the normal course of business
at the amounts stated in the financial statements.
Basis of consolidation
The consolidated financial statements incorporate the financial statements of
the Company and enterprises controlled by the Company (its subsidiaries) made up
to 31 December each year. Control is achieved where the Company has the power to
govern the financial and operating policies of a subsidiary.
Minority interests in the net assets of consolidated subsidiaries are identified
separately from the group's equity therein. Minority interests consist of the
amount of those interests at the date of the original business combination and
the minority's share of changes in equity since the date of the combination.
Losses applicable to the minority in excess of the minority's interest in the
subsidiary's equity are allocated against the interests of the Group except to
the extent that the minority has a binding obligation and is able to make
additional investment to cover the losses.
All intercompany transactions and balances between group enterprises are
eliminated on consolidation.
Depreciation
Depreciation is provided on all tangible fixed assets, at rates calculated to
write off the cost, less estimated residual value based on prices prevailing at
the date of acquisition of each asset evenly over its expected useful life as
follows:
Land and mine buildings - the shorter of mine life and
5 - 10 years, depending
on the nature of the asset.
Mine plant and equipment - 2.5 - 10 years, depending on the nature
of the asset.
Office plant and equipment - 3 - 7 years, depending on the nature of
the asset.
Motor vehicles - 4 years.
Exploration expenditure will be amortised over expected production volumes from
the date production commences.
Depreciation of assets, that have a direct nexus with an area of interest, in
which economically recoverable reserves have been identified, is carried forward
on the Balance Sheet where the development expenditures associated with that
area of interest are expected to be recouped through successful development and
exploitation of the area of interest, or alternatively, by its sale.
Deferred taxation
Deferred tax assets and liabilities are recognised for temporary timing
differences at the tax rates expected to apply when the assets are recovered or
liabilities are settled, based on those tax rates which are enacted or
substantively enacted for each jurisdiction.
The relevant tax rates are applied to the cumulative amounts of deductible and
taxable temporary timing differences to measure the deferred tax asset or
liability. An exception is made for certain temporary timing differences arising
from the initial recognition of an asset or a liability. No deferred tax asset
or liability is recognised in relation to these temporary differences if they
arose in a transaction, other than a business combination, that at the time of
the transaction did not affect either accounting profit or taxable profit or
loss.
Deferred tax assets are recognised for deductible temporary timing differences
and unused tax losses only if it is probable that future taxable amounts will be
available to utilise those temporary timing differences and losses.
Deferred tax liabilities and assets are not recognised for temporary differences
between the carrying amount and tax bases of investments in controlled entities
where the parent entity is able to control the timing of the reversal of the
temporary timing differences and it is probable that the differences will not
reverse in the foreseeable future.
Current and deferred tax attributable to amounts recognised directly in equity
are also recognised directly in equity.
Foreign currencies
Translation of foreign currency transactions
Transactions in foreign currencies of entities are converted to local currency
at the rate of exchange ruling at the date of the transaction.
Translation of foreign currency financial statements
Items included in the financial statements of each of the entities within the
Group are measured using the currency of the primary economic environment in
which the entity operates ("the functional currency"). The functional currency
of the Group is United States Dollars (USD). The consolidated financial
statements are presented in USD, which is the Company's presentation currency.
As at the reporting date the assets and liabilities of subsidiaries are
translated into USD at the rate of exchange ruling at the balance sheet date and
their income statements are translated at the weighted average exchange rate for
the year. The exchange differences arising on translation are taken directly to
a separate component of equity.
On disposal of a foreign currency denominated entity, the deferred cumulative
amount recognised in equity relating to that particular operation is transferred
to profit or loss account.
Exploration and evaluation expenditure
Exploration and evaluation costs (including the acquisition cost of exploration
properties) which relate to "an area of interest" are carried forward on the
balance sheet where the rights to tenure are current and:
- the area of interest has commercially recoverable reserves; or
- the exploration and/or evaluation activities of the area of interest
have not yet reached a stage that permits a reasonable assessment of the
existence or otherwise of commercially recoverable reserves.
The Group performs impairment testing when facts and circumstances suggest the
carrying amount has been impaired. If it is determined that the asset has been
impaired it is immediately written off in the income statement.
Once a development decision has been taken, all past and future exploration and
evaluation expenditure in respect of the area of interest is aggregated with the
cost of development.
Development
Development expenditure incurred by or on behalf of the Group is accumulated
separately for each area of interest in which economically recoverable reserves
have been identified to the satisfaction of the Directors. Such expenditure
comprises net direct costs and an appropriate portion of related overhead
expenditure having a specific nexus with the development property.
All development expenditure incurred prior to commencement of commercial levels
of production from each development property, is carried forward to the extent
to which recoupment out of revenue to be derived from the sale of production
from the relevant development property, or from the sale of that property, is
reasonably assured.
No amortisation is provided in respect of development properties until they are
reclassified as "Mine properties" following a decision to commence mining.
Borrowing costs
Borrowing costs are recognised as an expense when incurred, except where the
entity holds a qualifying asset. Those borrowing costs directly associated with
the qualifying asset are capitalised.
Share based payments - employee services
The fair value of employee services received in exchange for the grant of
options or shares is recognised as an expense. The total amount to be expensed
rateably over the vesting period is determined by reference to the fair value of
the options or shares determined at the grant date, excluding the impact of any
non-market vesting conditions (for example, profitability and sales growth
targets). Non-market vesting conditions are included in assumptions about the
number of options that are expected to become exercisable and the number of
shares that the employee will ultimately receive. Proceeds received on exercise
of options, net of any directly attributable transaction costs, are credited to
equity.
2. segment information
+------------------------------+------------------------------+-------------+-----------+--------+-------------+
| | UK | Australia |Indonesia | South | Total |
| | | | | East | |
| | | | | Asia | |
+ +------------------------------+-------------+-----------+--------+-------------+
| | US$ | US$ | US$ | US$ | US$ |
+------------------------------+------------------------------+-------------+-----------+--------+-------------+
| Half-year 2010 | | | | | |
+------------------------------+------------------------------+-------------+-----------+--------+-------------+
| | | | | | |
+------------------------------+------------------------------+-------------+-----------+--------+-------------+
| Segment result | (1,060,504) | (1,059,196) | (90,561) | - | (2,210,261) |
+------------------------------+------------------------------+-------------+-----------+--------+-------------+
| Unallocated revenue less | | | | | - |
| unallocated expenses | | | | | |
+------------------------------+------------------------------+-------------+-----------+--------+-------------+
| Loss before income tax | | | | | (2,210,261) |
+------------------------------+------------------------------+-------------+-----------+--------+-------------+
| | | | | | |
+------------------------------+------------------------------+-------------+-----------+--------+-------------+
| Half-year 2009 | | | | | |
+------------------------------+------------------------------+-------------+-----------+--------+-------------+
| | | | | | |
+------------------------------+------------------------------+-------------+-----------+--------+-------------+
| Segment result | (1,053,547) | (375,205) | (7,799) | - | (1,436,551) |
+------------------------------+------------------------------+-------------+-----------+--------+-------------+
| Unallocated revenue less | | | | | - |
| unallocated expenses | | | | | |
+------------------------------+------------------------------+-------------+-----------+--------+-------------+
| Loss before income tax | | | | | (1,436,551) |
+------------------------------+------------------------------+-------------+-----------+--------+-------------+
3. OPERATING GAIN/(LOSS)
+-----------------------------+------------+------------+------------+------------+
| | | | Half-Year | Half-Year |
| | | | ended | ended |
+-----------------------------+------------+------------+------------+------------+
| | | | 30 June | 30 June |
| | | | 2010 | 2009 |
+ +------------+ +------------+------------+
| | | | US$ | US$ |
+-----------------------------+-----------------------------+------------+------------+------------+
| (a) Revenue | | | | |
+-----------------------------+------------+------------+------------+------------+
| Interest income | | | 50,361 | 5,441 |
+-----------------------------+------------+------------+------------+------------+
| | | | 50,361 | 5,441 |
+-----------------------------+------------+------------+------------+------------+
| | | | | |
+-----------------------------+------------+------------+------------+------------+
| (b) Expenses | | | | |
+-----------------------------+------------+------------+------------+------------+
| Directors' remuneration | | | 277,811 | 171,310 |
+-----------------------------+------------+------------+------------+------------+
| Other staff costs | | | 303,503 | 142,902 |
+-----------------------------+------------+------------+------------+------------+
| Rent | | | 16,441 | 8,303 |
+-----------------------------+------------+------------+------------+------------+
| Depreciation | | | 1,353 | 1,593 |
+-----------------------------+------------+------------+------------+------------+
| Borrowing costs | | | 516,353 | 400,481 |
+-----------------------------+------------+------------+------------+------------+
| Fair value change of | | | (14,167) | (103,533) |
| investments | | | | |
+-----------------------------+------------+------------+------------+------------+
| Net foreign exchange | | | 286,876 | 70,146 |
| differences | | | | |
+-----------------------------+------------+------------+------------+------------+
| Other expenses | | | 872,039 | 281,671 |
+-----------------------------+------------+------------+------------+------------+
| Exploration Expenditure | | | | 371,918 |
| written off | | | - | |
+-----------------------------+------------+------------+------------+------------+
| Total administrative | | | 2,260,209 | 1,344,791 |
| expenses | | | | |
+-----------------------------+------------+------------+------------+------------+
4. EARNINGS PER SHARE
The calculation of basic earnings per share is based on a loss for the half year
of US$2,210,261 (2009: US$1,436,551), and on 423,425,355 (2009: 237,351,033)
ordinary shares, being the weighted average number of ordinary shares in issue
during the year.
The calculation of dilutive earnings per share is based on a dilutive loss for
the half year of US$2,210,261 (2009: US$1,347,403), and on 442,695,355 (2009:
256,166,033) potential dilutive ordinary shares.
5. SHARE CAPITAL
+--------------------------------+--------------------------------+-------------+-----------+-----------+
| | 30-Jun | 30-Jun | 30-Jun | 30-Jun |
+ +--------------------------------+-------------+-----------+-----------+
| | 2010 | 2009 | 2010 | 2009 |
+--------------------------------+--------------------------------+-------------+-----------+-----------+
| | Shares | Shares | US$ | US$ |
+--------------------------------+--------------------------------+-------------+-----------+-----------+
| | | | | |
+--------------------------------+--------------------------------+-------------+-----------+-----------+
| Balance at beginning of the | 306,019,334 | 201,149,334 | 5,194,236 | 3,697,515 |
| half-year | | | | |
+--------------------------------+--------------------------------+-------------+-----------+-----------+
| Issued during the period | 187,000,000 | 104,870,000 | 2,948,961 | 1,496,721 |
+--------------------------------+--------------------------------+-------------+-----------+-----------+
| Balance at end of the | 493,019,334 | 306,019,334 | 8,143,197 | 5,194,236 |
| half-year | | | | |
+--------------------------------+--------------------------------+-------------+-----------+-----------+
6. notes to the statement of cash flows
+-----------------------------------------------+-----------------------------------------------+-------------+
| | Half-Year | Half-Year |
| | ended | ended |
+ +-----------------------------------------------+-------------+
| | 30 June 2010 | 30 June |
| | | 2009 |
+ +-----------------------------------------------+-------------+
| | US$ | US$ |
+-----------------------------------------------+-----------------------------------------------+-------------+
| (a) Reconciliation of operating loss/gain to | | |
| net cash outflow from operating activities | | |
+-----------------------------------------------+-----------------------------------------------+-------------+
| Operating (loss) / gain | (2,210,261) | (1,339,350) |
+-----------------------------------------------+-----------------------------------------------+-------------+
| | | |
+-----------------------------------------------+-----------------------------------------------+-------------+
| Non-cash items | | |
+-----------------------------------------------+-----------------------------------------------+-------------+
| Exploration and evaluation expenditure | - | 371,918 |
| written off | | |
+-----------------------------------------------+-----------------------------------------------+-------------+
| Foreign exchange loss / (gain) | (286,876) | 44,208 |
+-----------------------------------------------+-----------------------------------------------+-------------+
| Share options expensed | - | - |
+-----------------------------------------------+-----------------------------------------------+-------------+
| Depreciation | 1,353 | 1,593 |
+-----------------------------------------------+-----------------------------------------------+-------------+
| Fair value change of investments | (14,167) | (103,725) |
+-----------------------------------------------+-----------------------------------------------+-------------+
| Borrowing costs amortised | 516,353 | 207,635 |
+-----------------------------------------------+-----------------------------------------------+-------------+
| Provision for doubtful debt | - | - |
+-----------------------------------------------+-----------------------------------------------+-------------+
| | | |
+-----------------------------------------------+-----------------------------------------------+-------------+
| Movement in assets and liabilities | | |
+-----------------------------------------------+-----------------------------------------------+-------------+
| (Increase)/Decrease in debtors | (1,543,936) | (319,820) |
+-----------------------------------------------+-----------------------------------------------+-------------+
| (Increase)/Decrease in prepayments | (148,549) | (4,593) |
+-----------------------------------------------+-----------------------------------------------+-------------+
| (Increase)/Decrease in inventory | (298,903) | 828 |
+-----------------------------------------------+-----------------------------------------------+-------------+
| Increase/(Decrease) in creditors | 2,404,486 | (751,726) |
+-----------------------------------------------+-----------------------------------------------+-------------+
| Increase/(Decrease) in provisions | 132,617 | 3,169 |
+-----------------------------------------------+-----------------------------------------------+-------------+
| | | |
+-----------------------------------------------+-----------------------------------------------+-------------+
| Net cash outflow from operating activities | (1,447,884) | (1,889,864) |
+-----------------------------------------------+-----------------------------------------------+-------------+
| | | |
+-----------------------------------------------+-----------------------------------------------+-------------+
7. Post balance sheet eventS
Other than as already announced, there has not been any other matter or
circumstance that has arisen since 30 June 2010 which has significantly
affected, or may significantly affect, the operations or state of affairs of the
Company.
8. GENERAL
The financial information set out in this interim report does not constitute
statutory accounts as defined in Section 240 of the Companies Act 1985.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR DBLBXBKFLBBK
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