Interim Results

RNS Number:7353I
Centamin Egypt Limited
14 March 2003



                             CENTAMIN EGYPT LIMITED

                                FINANCIAL REPORT

                    FOR THE HALF-YEAR ENDED 31 DECEMBER 2002





DIRECTORS' REPORT

The Directors of Centamin Egypt Limited herewith submit the financial report for
the half-year ended 31 December 2002. In order to comply with the provisions of
the Corporations Act 2001, the Directors report as follows:



DIRECTORS

The names of the Directors and officers of the company during or since the end
of the half-year are:


    Mr Sami El-Raghy BSc (Hons), FAusIMM, FSEG - Chairman

    Mr Josef El-Raghy BComm, Appointed 26 August 2002 - Managing Director

    Mr Colin Cowden FAII, ASA, ACIS, ACIM, FNIBA, CD - Non Executive Director

Mr Gordon B Speechly FAusIMM - Non Executive Director

Mr Thomas Elder PhD, FIMM, FGS - Non Executive Director

COMPANY SECRETARY

Mr Roland Bocso CPA

PROJECT MANAGER

Mr Harry Michael , BE mg (Hons), AUSTIMM

EXPLORATION

Mr Michael Kriewaldt MSc, FAUSIMM, MGSA, FSEG, MAIG

FINANCIAL CONTROLLER

Ms Cecilia Tyndall CA

PERTH OFFICE MANAGER

Mr John Lynch





REVIEW OF OPERATIONS:

The Company continues to infill and step-out drill the Sukari Gold Project in
the Eastern Desert of Egypt.

Results of this drilling are reported in the quarterly accounts submitted to the
Australian Stock Exchange and announcements of drilling upgrades submitted as
and when new results become available. To date approximately 53 000 metres of
diamond and RC drilling has been carried out at Sukari.

Stanley Mining Services were engaged in October 2002 and brought in two diamond
drill rigs to complement the company's three existing rigs.

In February 2003 the company prepared an interim resource estimate. Meanwhile
the current program of infill reserve drilling south of 10675N (Amun Zone) and
resource drilling north of 10750N (Ra Zone) is still in progress




Resources by confidence category, including cut Hapi shoot
         Measured                Indicated         Inferred           Total                Total        *Increase

cut-off    Mtonnes       g/t      Mtonnes    g/t     Mtonnes    g/t     Mtonnes     g/t       ounces        ounces

  0.5           12.86    1.36        20.33  1.41         23.03  1.6         56.23   1.47   2,658,110    609,704

  1.0            6.40    2.02        10.46  2.06         12.27  2.4         29.14   2.17   2,033,270    470,854

Note: *Increase in total ounces since the July 2002 resource statement

Uncut Hapi shoot resources

                 Indicated              Inferred              Total            Total

 cut-off      tonnes       g/t       tonnes      g/t      tonnes      g/t      ounces

   0.5            40922   26.0          106164  54.9         147087  46.8   221,434

The above resource estimates have been calculated using drill hole data up to
hole 293.

In January 2003 the Company signed a mandate letter with Standard Bank of London
Limited, appointing Standard Bank as arranger for a limited recourse project
finance loan facility for the development of the Sukari gold project.

In February Mr Harry Michael was engaged as project manager, he will coordinate
the upgrade of the existing feasibility study on the two million tonne per year
process facility to a bankable feasibility study of between three to five
million tonne per year. Following this, Mr Michael will be responsible for the
construction and bringing into operation of the Sukari Gold Project.

The Company successfully negotiated the underwriting of its March 2003 options,
with Williams de Broe (London), Southern Cross Equities Ltd (Sydney) and
Argonaut Capital Ltd (Perth) each contracting to take 50%, 25% and 25%
respectively of the unexercised options as at 1st February 2003.

The funds raised from the exercise of options will be utilised towards the
financing of the Sukari Gold Operation, along with funding of continued
exploration and development drilling with the intention to increase the resource
base at Sukari.

Signed in accordance with a resolution of the directors made pursuant to s.306
of the Corporations Act 2001.

On behalf of the Directors




Josef El-Raghy

Managing Director

Perth, 13 March 2003





                    INDEPENDENT REVIEW REPORT TO THE MEMBERS

                           OF CENTAMIN EGYPT LIMITED

Scope

We have reviewed the financial report of Centamin Egypt Limited for the
half-year ended 31 December 2002 as set out on pages 4 to 10. The financial
report includes the consolidated financial statements of the consolidated entity
comprising the disclosing entity and the entities it controlled at the end of
the half-year or from time to time during the half-year. The disclosing entity's
directors are responsible for the financial report. We have performed an
independent review of the financial report in order to state whether, on the
basis of the procedures described, anything has come to our attention that would
indicate that the financial report is not presented fairly in accordance with
Accounting Standard AASB 1029 "Interim Financial Reporting" and other mandatory
professional reporting requirements in Australia and statutory requirements, so
as to present a view which is consistent with our understanding of the
consolidated entity's financial position, and performance as represented by the
results of its operations and its cash flows, and in order for the disclosing
entity to lodge the financial report with the Australian Securities and
Investments Commission.

Our review has been conducted in accordance with Australian Auditing Standards
applicable to review engagements. A review is limited primarily to inquiries of
the entity's personnel and analytical procedures applied to the financial data.
These procedures do not provide all the evidence that would be required in an
audit, thus the level of assurance provided is less than given in an audit. We
have not performed an audit and, accordingly, we do not express an audit
opinion.

Statement

Based on our review, which is not an audit, we have not become aware of any
matter that makes us believe that the half-year financial report of Centamin
Egypt Limited is not in accordance with:


        (a)     the Corporations Act 2001, including:

            (i)     giving a true and fair view of the consolidated entity's
            financial position as at 31 December 2002 and of its performance for
            the half-year ended on that date; and

            (ii)     complying with Accounting Standard AASB 1029 "Interim
            Financial Reporting" and the Corporations Regulations 2001; and

        (b)     other mandatory professional reporting requirements in
                Australia.







DELOITTE TOUCHE TOHMATSU





PJ Messer

Partner

Chartered Accountants

Perth, WA 11 March 2003


DIRECTORS' DECLARATION





The directors declare that:


 a. The attached financial statements and notes thereto comply with Accounting
    Standards;

 b. The attached financial statements and notes thereto give a true and fair view
    of the financial position and performance of the consolidated entity;

 c. In the directors' opinion, the attached financial statements and notes
    thereto are in accordance with the Corporations Act 2001; and

 d. In the directors' opinion, there are reasonable grounds to believe that the
    Company will be able to pay its debts as and when they become due and
    payable.





Signed in accordance with a resolution of the directors made pursuant to s. 303
(5) of the Corporations Act 2001.

On behalf of the Directors







Josef El-Raghy

Managing Director

Perth, 13 March 2003







               CENTAMIN EGYPT LIMITED and its controlled entities

                  FINANCIAL STATEMENTS for the half-year ended

                                31 December 2002



CENTAMIN EGYPT LIMITED and its controlled entities

STATEMENT OF FINANCIAL PERFORMANCE for the half-year ended

31 December 2002


                                                                                     Consolidated
                                                                            Half Year Ended     Half Year Ended

                                                                                  31 Dec 02           31 Dec 01

                                                                                          $                   $

Revenue from ordinary activities                                                    204,824              72,303
Expenses
Salaries, Directors fees & Superannuation                                           241,956              40,500
Travelling expenses                                                                  78,415              41,664
Accounting, Audit & Legal fees                                                       62,905             122,138
Promotional expenses                                                                 58,535              11,888
Other expenses from ordinary activities                                              54,264              44,005
Listing & Share Registry fees                                                        50,078              19,196
Telephone expenses                                                                   33,343              10,192
Secretarial fees                                                                     24,498              24,499
Office rent                                                                          20,000                   -
Consulting fees                                                                      17,229              17,713
Annual Report expenses                                                               15,156              22,454
Foreign exchange loss                                                                 1,762              78,304
Profit/(Loss) From Ordinary Activities Before Income Tax                          (453,317)           (360,250)
Benefit
Income tax benefit relating to ordinary activities                                        -                   -
Net Profit/(Loss)                                                                 (453,317)           (360,250)
Net Profit/(Loss) attributable to outside equity interests                     (35)                  -
Net Profit/(Loss) Attributable to Members of the Parent                           (453,282)           (360,250)
Entity
Total Changes in Equity Other than those Resulting from                           (453,282)           (360,250)
Transactions with Owners as Owners
Earnings Per Share - Basic (cents per share)                                         (0.13)              (0.11)

-Diluted (cents per share)                                                           (0.13)              (0.11)
The statement of financial performance is to be read in
conjunction with the notes to and forming part of the
half-yearly financial statements

CENTAMIN EGYPT LIMITED and its controlled entities

STATEMENT OF FINANCIAL POSITION as at 31 December 2002


                                                                                          Consolidated
                                                                                31 December 2002             30 June

                                                                                                                2002
                                                                                               $                   $
CURRENT ASSETS
Cash Assets                                                                            3,150,041           3,954,083
Receivables                                                                               37,712              23,548
Prepayments                                                                               70,465              45,430
Total current assets                                                                   3,258,218           4,023,061

NON-CURRENT ASSETS
Plant and equipment                                                                      146,857              99,387
Exploration expenditure                                                               23,163,149          21,092,284
Total non-current assets                                                              23,310,006          21,191,671

Total assets                                                                          26,568,224          25,214,732

CURRENT LIABILITIES
Bank overdraft                                                                             3,722                   -
Payables                                                                               1,053,688             574,509
Non-Interest bearing liabilities                                                          42,694             141,961
Total current liabilities                                                              1,100,104             716,470

NON-CURRENT LIABILITIES
Payables                                                                               1,330,727           1,556,909
Total non-current liabilities                                                          1,330,727           1,556,909

Total liabilities                                                                      2,430,831           2,273,379

Net assets                                                                            24,137,393          22,941,353

EQUITY
Contributed equity                                                                    41,321,624          39,669,533
Reserves                                                                               3,365,509           3,368,243
Accumulated losses                                                                  (20,542,015)        (20,088,733)
Parent entity interest                                                                24,145,118          22,949,043
Outside equity interest                                                                  (7,725)             (7,690)
Total equity                                                                          24,137,393          22,941,353
The statement of financial position is to be read in
conjunction with the notes to and forming part of the
half-yearly financial statements.



CENTAMIN EGYPT LIMITED and its controlled entities

STATEMENT OF CASH FLOWS for the half-year ended 31 December 2002



                                                                                        Consolidated
                                                                                       Half-Year     Half-Year Ended
                                                                                           Ended           31 Dec 01
                                                                                       31 Dec 02                   $
                                                                                               $
CASH FLOWS FROM OPERATING

ACTIVITIES

Cash receipts in the course of operations                                                                      1,000

                                                                                               -
Cash payments in the course of operations                                              (673,257)           (700,216)
Interest received - other persons                                                         54,978              36,417
Net cash provided by/(used in) operating activities                                    (618,279)           (662,799)

CASH FLOWS FROM INVESTING

ACTIVITIES
Payment for purchases of property, plant & equipment                                    (54,671)            (23,631)
Payments for exploration                                                             (1,606,806)         (1,755,794)
Net cash (used in) investing activities                                              (1,661,477)         (1,779,425)

CASH FLOWS FROM FINANCING

ACTIVITIES
Proceeds from the issue of shares                                                      1,649,357           7,750,486
Issue costs                                                                                    -         (1,287,799)
Repayment of borrowings                                                                (325,449)           (280,000)
Net cash provided by financing activities                                              1,323,908           6,182,687

Net increase/(decrease) in cash held                                                   (955,848)           3,740,463

Effects of exchange rate changes on the balance of cash held                             148,084            (43,418)
in foreign currencies

Cash at the beginning of the half-year                                                 3,954,083           3,071,644

Cash at the end of the half-year                                                       3,146,319           6,768,689

The statement of cash flows is to be read in conjunction with
the notes to and forming part of the half-yearly financial
statements.



1.     Statement of significant accounting policies


        The significant policies, which have been adopted in the preparation of
        these financial statements, are:

 A. BASIS OF PREPARATION


        The half-year financial report is a general purpose financial report
        prepared in accordance with the Corporations Act 2001 and AASB 1029
        "Half-Year Accounts and Consolidated Accounts". The half-year financial
        report should be read in conjunction with the 2002 Annual Financial
        Report together with any announcements made by the company and its
        controlled entities during the half-year in accordance with any
        continuous disclosure obligations arising under the Corporations Act
        2001.

        The consolidated accounts have been prepared on the basis of historical
        costs and do not take into account changing money values or, except
        where stated, current valuations of non-current assets. The accounting
        policies have been consistently applied by the entities in the economic
        entity and, except where there is a note of a change in accounting
        policy, are consistent with those of the previous year.


 B. PRINCIPLES OF CONSOLIDATION

    The consolidated accounts of the economic entity include the accounts of the
    company, being the chief entity, and its controlled entities. Where an
    entity either began or ceased to be controlled during the year, the results
    are included only from the date control commenced or up to the date control
    ceased. The balances, and effects of transactions, between controlled
    entities included in the consolidated accounts have been eliminated.

 C. TAXATION

    The economic entity adopts the liability method of tax effect accounting.
    Income tax benefit is calculated on the profit/(loss) from ordinary
    activities adjusted for permanent differences between taxable and accounting
    income. The tax effect of timing differences, which arise from items being
    brought to account in different periods for income tax and accounting
    purposes, is carried forward in the statement of financial position as a
    future income tax benefit or a provision for deferred income tax.

    Future income tax benefits are not brought to account unless realisation of
    the asset is assured beyond reasonable doubt. Future income tax benefits
    relating to tax losses are only brought to account when their realisation is
    virtually certain.

 D. NON-CURRENT ASSETS

    The carrying amounts of all non-current assets, except exploration
    expenditure, are reviewed to determine whether they are in excess of their
    recoverable amount at balance date. If the carrying amount of a non-current
    asset exceeds the recoverable amount, the asset is written down to the lower
    amount. In assessing recoverable amounts the relevant cash flows have not
    been discounted to their present value.

 E. INVESTMENTS

    Investments in controlled entities are carried in the company's accounts at
    recoverable amount. Dividends and distributions are brought to account in
    the statement of financial performance when they are proposed by the
    controlled entities.

 F. EXPLORATION, EVALUATION AND DEVELOPMENT EXPENDITURE

    Exploration, evaluation and development costs are accumulated in respect of
    each separate area of interest where rights of tenure are current. These
    costs are carried forward where they are expected to be recouped through
    sale or successful development and exploitation of the area of interest, or,
    where activities in the area of interest have not yet reached a stage that
    permits reasonable assessment of the existence of economically recoverable
    reserves.

    When an area of interest is abandoned or the directors decide that it is not
    commercial, any accumulated costs in respect of that area are written off in
    the year the decision is made. Each area of interest is also reviewed
    annually and accumulated costs written off to the extent that they will not
    be recoverable in the future.

    As at balance date:

    *     The economic entity is still progressing exploration to
    delineate resources;

    *     A feasibility study with respect to a processing plant with a
    capacity in excess of 2 million tonnes per annum is currently
    in progress; and

    *     The realisable value is dependant upon the current and
    future commodity prices

    As a consequence of the above, the ability of the economic entity to recover
    the carrying amount of the exploration expenditure and areas of interest, is
    dependant upon the successful development and commercial exploitation and/or
    sale of the relevant areas of interest.

    Amortisation is not charged on costs carried forward in respect of areas of
    interest in the development phase until production commences.

    When production commences, carried forward exploration, evaluation and
    development costs are amortised on units of production basis over the life
    of the economically recoverable reserves.

    Restoration costs are provided for at the time of the activities which give
    rise to the need for restoration. If this occurs prior to commencement of
    production, the costs are included in deferred exploration and development
    expenditure. If it occurs after commencement of production, restoration
    costs are provided for and charged to the statement of financial performance
    as an expense.

 G. PLANT AND EQUIPMENT

    Items of plant and equipment are recorded at cost and depreciated from the
    date of acquisition on a reducing balance method over their estimated useful
    lives. The following estimated useful lives are used in the calculation of
    depreciation:

    Plant & Equipment     -     2 years

    Motor Vehicles        -     2 years

    Drilling Rig          -     1 year

 H. SUPERANNUATION FUND


        The Company contributes to, but does not participate in, compulsory
        superannuation funds on behalf of the directors in respect of directors'
        fees paid. Contributions are charged against income as they are made.

    (I)     FOREIGN CURRENCY

        All foreign currency transactions during the year have been brought to
        account using the exchange rate in effect at the date of the
        transaction. Foreign currency monetary items at balance date are
        translated at the exchange rate existing at that date.

        All exchange differences are brought to account in the statement of
        financial performance in the financial period in which they arise.

        The assets and liabilities of the controlled entity incorporated
        overseas (being an integrated foreign operation) are translated using
        the temporal method. Monetary items are translated using the exchange
        rate at balance date and non-monetary items are translated at exchange
        rates current at the transaction dates. The statement of financial
        performance is translated at the exchange rate current at the
        transaction date, except that non-monetary items are translated at the
        original rates. Exchange differences arising on translation are taken
        directly to the statement of financial performance.


 J. RECEIVABLES

    Trade receivables and other receivables are recorded at amounts due less any
    provision for doubtful debts.

 K. ACCOUNTS PAYABLE

    Trade payables and other accounts payable are recognised when the economic
    entity becomes obliged to make future payments resulting from the purchase
    of goods and services.

 L. DEBT AND EQUITY INSTRUMENTS ISSUED BY THE COMPANY

    Debt and equity instruments are classified as either liabilities or as
    equity in accordance with the substance of the contractual arrangement.

 M. GOODS AND SERVICES TAX

    Revenues, expenses and assets are recognised net of the amount of goods and
    services tax (GST), except:

     i. Where the amount of GST incurred is not recoverable from the taxation
        authority, it is recognised as part of the cost of acquisition of an
        asset or as part of an item of expense; or

    ii. For receivables and payables which are recognised inclusive of GST.


        The net amount of GST recoverable from, or payable to, the taxation
        authority is included as part of receivables or payables.





2.     Segment reporting

Primary reporting - Business Segments

The economic entity is engaged in the business of exploration for precious and
base metals only, which is characterised as one business segment only. As the
economic entity has only one business segment, all the necessary reporting
disclosures are disclosed elsewhere in the notes to the financial statements.

Secondary reporting - Geographical Segments

The principal activity of the economic entity during the year was the
exploration for precious and base metals in Egypt and funding is sourced from
Australia.




3.     Contingent liabilities

The details and estimated maximum amounts of contingent

liabilities, classified according to the party from whom the

contingent liability arises, are set out below.
                                                                                      Economic Entity
                                                                               31 December 2002         30 June 2002

                                                                                              $                    $
(a) Benefits payable on termination in certain circumstances to
directors under service agreements:


Mr. M. Kriewaldt                                                                        350,000              350,000

                                                                                        350,000              350,000



4.     Events subsequent to balance date

In January 2003 the Company signed a mandate letter with Standard Bank of London
Limited, appointing Standard Bank as arranger for a limited recourse project
finance loan facility for the development of the Sukari gold project



On 8 January 2003 the Directors resolved to issue up to 25,000,000 ordinary
shares in the Company to a financial institution in the United Kingdom, at an
issue price of GBP#0.09. On 4 February 2003 the Company issued 22,580,127 shares
to the financial institution at a total price of GBP#2,032,211.43.

The Company successfully negotiated the underwriting of its March 2003 options,
with Williams de Broe (London), Southern Cross Equities Ltd (Sydney) and
Argonaut Capital Ltd (Perth) each contracting to take 50%, 25% and 25%
respectively of the unexercised options as at 1st February 2003.


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