TIDMBRM
RNS Number : 3897K
Brinkley Mining PLC
19 April 2010
For immediate release
19 April 2010
Brinkley Mining Plc
("Brinkley Mining" or the "Company")
AUDITED RESULTS
FOR THE YEAR ENDED 31 DECEMBER 2009
BOARD CHANGES
Brinkley Mining announces its audited results for the year ended 31 December
2009. The Report and Accounts are being posted to shareholders today and the
Annual General Meeting will be held in London on 11 May 2010. Copies of the
audited accounts and Notice of Annual General Meeting are available from the
Company's website, www.brinkley-mining.com.
Chairman's Statement
Fundamental Change of Business
The past year has seen the Company undergo further significant changes. The
Company's stated strategy, approved by shareholders in December 2008, was to
acquire holdings in natural resources, minerals and or metals companies and
assets.
The Company had made one investment by 31 December 2009 following its
re-classification as an Investing Company. On 4 December 2009 the Company
announced that it had purchased an investment of 8.13 per cent in Dragon Mining
Limited ("Dragon") financed from its cash balances.
Under the AIM Rules, the Company has become an Investing Company with its main
asset being its cash balances, which at 31 December 2009 amounted to
GBP3,079,757. The disposals and restructuring of the Company has enabled it to
significantly reduce its annual cash expenditure thereby preserving its cash
resources.
Corporate
A number of changes to the Company's Board have recently taken place. On 22
September 2009, I joined the Board and on 23 October 2009, Neil MacLachlan
joined as Non-Executive Director. Dunbar Dales and Mark Fresson relinquished
their Board positions on 23 October 2009 and Richard Linnell relinquished his
position as Non-Executive Chairman on 22 December 2009.
Results Summary
The Group loss after tax for the year was GBP0.295 million (2008: GBP13.0
million loss). The loss is mainly attributable to the write-back of cancelled
options of GBP2,428,000 and impairment and disposal losses of (GBP1,724,000).
Board Changes
The Company has also appointed Grant Paterson as a non-executive director of the
Company with effect from today. Grant Paterson holds a Bachelor of Laws degree
and a Bachelor of Commerce (Finance) degree and is a member of the Law Society
of Western Australia. He is a practicing barrister and solicitor and is a
partner in the Perth-based law firm Hardy Bowen, which practices primarily in
the corporate, commercial and securities laws areas. Further details on Grant
Paterson as required by the AIM Rules are set out in note 26 below. Clayton Dodd
has today resigned a director of the Company and I would like to thank him for
his contribution to the development of the Company.
Outlook
The Company has purchased a further 4.5 per cent investment in Dragon for
approximately GBP2 million on 27 January 2010. Following this further
investment, the Company now owns 12.68 per cent of Dragon. The investment has
been financed from the Company's cash balances.
The balance of the Company's current cash balances have been retained by the
Company to provide working capital for its ongoing costs, professional expenses
and to be available to fund any further investments by the Company in line with
its investing strategy which would depend on investment (and realisation)
opportunities and ongoing costs.
I would like to thank our staff and partners for all their hard work and
assistance in effectively restructuring and refocusing the Company to create an
organisation that is well positioned to take advantage of current market
conditions and create significant value for shareholders.
Peter Gunzburg
Executive Chairman
19 April 2010
Projects Overview
South Africa
Brinkley Mining continues to hold its 49% interest in Western Uranium (Pty) Ltd,
which has as its only asset, the Waterval prospect in the Karoo region of South
Africa ("Waterval"). Exploration work completed to date has shown that the
Waterval project contains a small Uranium resource whose grade and limited
tonnage are insufficient to support the establishment of a stand-alone operation
to exploit it. Accordingly, the Board has decided to spend no further monies on
developing this project and is looking at ways to dispose of its interest in the
project. The Directors have consequently reduced the carrying value of the
Company's interests in Western Uranium to GBPnil as at the Balance Sheet date.
Southern Sudan
Brinkley Mining's wholly-owned subsidiary, Brinkley Mining Project 4 Ltd, has a
provisional prospecting license for the exclusive exploration of Uranium and
associated minerals over an area of over 5,000 km² of Budi County in Southern
Sudan and operates a Joint Venture with New Kush Exploration and Mining Company
Limited to explore the licence area. Brinkley management has reviewed the
exploration results obtained from its interpretation of the extensive airborne
aeromagnetic and radiometric survey exploration work carried out during 2008 and
from the field work program carried out during April 2009. It concluded that,
though the Budi concession area showed promise for the hosting of gold and
uranium mineralisation, the project was too early-stage and therefore did not
meet Brinkley's revised exploration criteria. Furthermore, an assessment of the
political and security risks in Southern Sudan, suggests that they may increase
over the short to medium term. Based on an assessment of these factors, the
Board has decided to spend no further monies on developing the Southern Sudan
project and is looking at ways to dispose of its interest in the project. The
Directors have consequently reduced the carrying value of the Company's
interests in Southern Sudan to GBPnil as at the Balance Sheet date.
Peter Gunzburg
19 April 2010
+----------------------------------------+---------------------+
| For further information, please | |
| contact: | |
+----------------------------------------+---------------------+
| Brinkley Mining Plc | |
+----------------------------------------+---------------------+
| Peter Gunzburg, Chairman | Tel: +618 94 81 05 |
| | 72 |
+----------------------------------------+---------------------+
| Beaumont Cornish Limited (Nominated | |
| Adviser) | |
+----------------------------------------+---------------------+
| Michael Cornish | Tel: +44 (0) 20 |
| | 7628 3396 |
+----------------------------------------+---------------------+
Group Statement of Comprehensive Income for the year ended 31 December 2009
+-----------------------------+------------+-------------+-------------+
| | | Year ended | Year ended |
| | | 31 | |
| | | December | 31 December |
| | | 2009 | 2008 |
+ +------------+-------------+-------------+
| | Notes | GBP 000's | GBP 000's |
+-----------------------------+-----------------------------+------------+-------------+
| | | | |
+-----------------------------+------------+-------------+-------------+
| Revenue | | - | - |
+-----------------------------+------------+-------------+-------------+
| Other Income | | 22 | 15 |
+-----------------------------+------------+-------------+-------------+
| Administrative expenses | | (1,094) | (2,238) |
+-----------------------------+------------+-------------+-------------+
| Loss on disposals | | (1,356) | (2,046) |
+-----------------------------+------------+-------------+-------------+
| Impairment charge | 10,11, 12 | (368) | (9,306) |
+-----------------------------+------------+-------------+-------------+
| Share options | 7, 18 | 2,428 | 127 |
| reversed/(expensed) | | | |
+-----------------------------+------------+-------------+-------------+
| Group operating (loss) | 3 | (368) | (13,448) |
+-----------------------------+------------+-------------+-------------+
| | | | |
+-----------------------------+------------+-------------+-------------+
| Finance revenue | 9 | 73 | 400 |
+-----------------------------+------------+-------------+-------------+
| (Loss) before taxation | 2 | (295) | (13,048) |
+-----------------------------+------------+-------------+-------------+
| | | | |
+-----------------------------+------------+-------------+-------------+
| Income tax expense | 5 | - | - |
+-----------------------------+------------+-------------+-------------+
| (Loss) for the year after | | (295) | (13,048) |
| taxation | | | |
+-----------------------------+------------+-------------+-------------+
| | | | |
+-----------------------------+------------+-------------+-------------+
| Other comprehensive income | | | |
+-----------------------------+------------+-------------+-------------+
| Gain on revaluation of | | 300 | - |
| available for sale | | | |
| investments | | | |
+-----------------------------+------------+-------------+-------------+
| Currency translation | | 72 | (223) |
| differences | | | |
+-----------------------------+------------+-------------+-------------+
| Other comprehensive income | | 372 | (223) |
| for the year net of | | | |
| taxation | | | |
+-----------------------------+------------+-------------+-------------+
| | | | |
+-----------------------------+------------+-------------+-------------+
| Total comprehensive income | | 77 | (13,271) |
| for the year | | | |
+-----------------------------+------------+-------------+-------------+
| | | | |
+-----------------------------+------------+-------------+-------------+
| Retained (loss) for the | | | |
| year attributable to: | | | |
+-----------------------------+------------+-------------+-------------+
| Equity holders of the | | (295) | (12,524) |
| parent | | | |
+-----------------------------+------------+-------------+-------------+
| Minority interests | | - | (524) |
+-----------------------------+------------+-------------+-------------+
| | | (295) | (13,048) |
+-----------------------------+------------+-------------+-------------+
| Total comprehensive income | | | |
| for the year attributable | | | |
| to: | | | |
+-----------------------------+------------+-------------+-------------+
| Equity holders of the | | 77 | (12,747) |
| parent | | | |
+-----------------------------+------------+-------------+-------------+
| Minority interests | | - | (524) |
+-----------------------------+------------+-------------+-------------+
| | | 77 | (13,271) |
+-----------------------------+------------+-------------+-------------+
| Loss per share (Pence) | | | |
+-----------------------------+------------+-------------+-------------+
| Basic | 8 | (0.08) | (3.66) |
+-----------------------------+------------+-------------+-------------+
| Diluted | 8 | (0.08) | (3.66) |
+-----------------------------+------------+-------------+-------------+
| | | | |
+-----------------------------+------------+-------------+-------------+
| All of the operations are considered to | | |
| be continuing. | | |
+-----------------------------+------------+-------------+-------------+
Group Balance Sheet
as at 31 December 2009
+------------------------+-------+-----+----+----------+----------+-------------+
| | | 31 December 2009 | 31 December 2008 |
+------------------------+-------+---------------------+------------------------+
| ASSETS |Notes | | | | |
+------------------------+-------+----------+----------+----------+-------------+
| | | GBP | GBP | GBP | GBP 000's |
| | | 000's | 000's | 000's | |
+------------------------+-------+----------+----------+----------+-------------+
| Non-current assets | | | | | |
+------------------------+-------+----------+----------+----------+-------------+
| Intangible assets | 10 | - | | 299 | |
+------------------------+-------+----------+----------+----------+-------------+
| Tangible assets | 11 | 141 | | 305 | |
+------------------------+-------+----------+----------+----------+-------------+
| Available for sale | 14 | 3,364 | | - | |
| investment | | | | | |
+------------------------+-------+----------+----------+----------+-------------+
| Total non-current | | | 3,505 | | 604 |
| assets | | | | | |
+------------------------+-------+----------+----------+----------+-------------+
| | | | | | |
+------------------------+-------+----------+----------+----------+-------------+
| Current assets | | | | | |
+------------------------+-------+----------+----------+----------+ +
| Cash and cash | | 3,080 | | 7,322 | |
| equivalents | | | | | |
+------------------------+-------+----------+----------+----------+ +
| Trade and other | 15 | 47 | | 138 | |
| receivables | | | | | |
+------------------------+-------+----------+----------+----------+-------------+
| Total current assets | | | 3,127 | | 7,460 |
+------------------------+-------+----------+----------+----------+-------------+
| TOTAL ASSETS | | | 6,632 | | 8,064 |
+------------------------+-------+----------+----------+----------+-------------+
| | | | | | |
+------------------------+-------+----------+----------+----------+-------------+
| LIABILITIES | | | | | |
+------------------------+-------+----------+----------+----------+-------------+
| Current liabilities | | | | | |
+------------------------+-------+----------+----------+----------+ +
| Trade and other | 16 | (33) | | (176) | |
| payables | | | | | |
+------------------------+-------+----------+----------+----------+-------------+
| Total current | | | (33) | | (176) |
| liabilities | | | | | |
+------------------------+-------+----------+----------+----------+-------------+
| | | | | | |
+------------------------+-------+----------+----------+----------+-------------+
| TOTAL LIABILITIES | | | (33) | | (176) |
+------------------------+-------+----------+----------+----------+-------------+
| NET ASSETS | | | 6,599 | | 7,888 |
+------------------------+-------+----------+----------+----------+-------------+
| | | | | | |
+------------------------+-------+----------+----------+----------+-------------+
| EQUITY | | | | | |
+------------------------+-------+----------+----------+----------+ +
| Called-up share | 17 | 535 | | 535 | |
| capital | | | | | |
+------------------------+-------+----------+----------+----------+ +
| Share premium | | 27,774 | | 27,774 | |
+------------------------+-------+----------+----------+----------+ +
| Available for sale | | 300 | | - | |
| investment reserve | | | | | |
+------------------------+-------+----------+----------+----------+ +
| Share based payments | 18 | 1,011 | | 3,439 | |
| reserve | | | | | |
+------------------------+-------+----------+----------+----------+ +
| Retained earnings | | (22,823) | | (23,066) | |
+------------------------+-------+----------+----------+----------+-------------+
| Foreign exchange | | (198) | | (270) | |
| reserve | | | | | |
+------------------------+-------+----------+----------+----------+-------------+
| Total Equity | | 6,599 | | 8,412 | |
| attributable to equity | | | | | |
| holders of the parent | | | | | |
+------------------------+-------+----------+----------+----------+-------------+
| Minority interests | | - | | (524) | |
+------------------------+-------+----------+----------+----------+-------------+
| | | | | | |
+------------------------+-------+----------+----------+----------+-------------+
| TOTAL EQUITY | | | 6,599 | | 7,888 |
+------------------------+-------+----------+----------+----------+-------------+
| |
| These financial statements were approved by the Board of Directors on 19 |
| April 2010 and signed on its behalf by: |
| |
| |
+-------------------------------------------------------------------------------+
| Peter Gunzburg | Neil MacLachlan |
+--------------------------------------+----------------------------------------+
| Director | Director |
+--------------------------------------+----------------------------------------+
| | | | | | | |
+------------------------+-------+-----+----+----------+----------+-------------+
Company Balance Sheet
as at 31 December 2009
+------------------+-------+--------+----------+-----------+----------+----------------+
| | | 31 December 2009 | 31 December 2008 |
+------------------+-------+-------------------------------+---------------------------+
| |Notes | |
+------------------+-------+-----------------------------------------------------------+
| | | GBP 000's | GBP 000's | GBP | GBP 000's |
| | | | | 000's | |
+------------------+-------+-------------------+-----------+----------+----------------+
| ASSETS | | | | | |
+------------------+-------+-------------------+-----------+----------+----------------+
| Non-current | | | | | |
| assets | | | | | |
+------------------+-------+-------------------+-----------+----------+----------------+
| Investment in | 13 | 3 | | 3 | |
| subsidiaries | | | | | |
+------------------+-------+-------------------+-----------+----------+----------------+
| Available for | 14 | 3,364 | | | |
| sale investment | | | | | |
+------------------+-------+-------------------+-----------+----------+----------------+
| Trade and other | 15 | 1,250 | | 4,272 | |
| receivables | | | | | |
+------------------+-------+-------------------+-----------+----------+----------------+
| Total | | | 4,617 | | 4,275 |
| non-current | | | | | |
| assets | | | | | |
+------------------+-------+-------------------+-----------+----------+----------------+
| | | | | | |
+------------------+-------+-------------------+-----------+----------+----------------+
| Current assets | | | | | |
+------------------+-------+-------------------+-----------+----------+ +
| Cash and cash | | 3,078 | | 7,304 | |
| equivalents | | | | | |
+------------------+-------+-------------------+-----------+----------+ +
| Trade and other | 15 | 47 | | 79 | |
| receivables | | | | | |
+------------------+-------+-------------------+-----------+----------+----------------+
| Total Current | | | 3,125 | | 7,383 |
| Assets | | | | | |
+------------------+-------+-------------------+-----------+----------+----------------+
| TOTAL ASSETS | | | 7,742 | | 11,658 |
+------------------+-------+-------------------+-----------+----------+----------------+
| | | | | | |
+------------------+-------+-------------------+-----------+----------+----------------+
| LIABILITIES | | | | | |
+------------------+-------+-------------------+-----------+----------+----------------+
| Current | | | | | |
| Liabilities | | | | | |
+------------------+-------+-------------------+-----------+----------+ +
| Trade and other | 16 | (23) | | (69) | |
| payables | | | | | |
+------------------+-------+-------------------+-----------+----------+----------------+
| TOTAL | | | | | (69) |
| LIABILITIES | | | | | |
+------------------+-------+-------------------+-----------+----------+----------------+
| NET ASSETS | | | 7,719 | | 11,589 |
+------------------+-------+-------------------+-----------+----------+----------------+
| | | | | | |
+------------------+-------+-------------------+-----------+----------+----------------+
| EQUITY | | | | | |
+------------------+-------+-------------------+-----------+----------+ +
| Called-up share | 17 | 535 | | 535 | |
| capital | | | | | |
+------------------+-------+-------------------+-----------+----------+ +
| Share premium | | 27,774 | | 27,774 | |
+------------------+-------+-------------------+-----------+----------+ +
| Available for | | 300 | | - | |
| sale investment | | | | | |
| reserve | | | | | |
+------------------+-------+-------------------+-----------+----------+----------------+
| Share based | 18 | 1,011 | | 3,439 | |
| payments reserve | | | | | |
+------------------+-------+-------------------+-----------+----------+----------------+
| Retained | 25 | (21,901) | | (20,159) | |
| earnings | | | | | |
+------------------+-------+-------------------+-----------+----------+----------------+
| | | | | | |
+------------------+-------+-------------------+-----------+----------+----------------+
| TOTAL EQUITY | | | 7,719 | | 11,589 |
+------------------+-------+-------------------+-----------+----------+----------------+
| |
| These financial statements were approved by the Board of Directors on 19 April |
| 2010 and signed on its behalf by: |
| |
+--------------------------------------------------------------------------------------+
| | |
+-----------------------------------+--------------------------------------------------+
| Peter Gunzburg | Neil MacLachlan |
+-----------------------------------+--------------------------------------------------+
| Director | Director |
+-----------------------------------+--------------------------------------------------+
| | | | | | | |
+------------------+-------+--------+----------+-----------+----------+----------------+
Group Cash Flow Statement
for the year ended 31 December 2009
+------------------------------+-------+-------------+--------------+
| | | For the | For the year |
| | | year ended | ended |
| | | 31 December | 31 December |
| | | 2009 | 2008 |
+------------------------------+-------+-------------+--------------+
| |Notes | GBP 000's | GBP 000's |
+------------------------------+-------+-------------+--------------+
| Cash flows from operating | | | |
| activities | | | |
+------------------------------+-------+-------------+--------------+
| Operating Loss | | (368) | (13,448) |
+------------------------------+-------+-------------+--------------+
| Decrease/(increase) in trade | | 91 | (11) |
| and other receivables | | | |
+------------------------------+-------+-------------+--------------+
| (Decrease)/increase in trade | | (143) | (67) |
| and other payables | | | |
+------------------------------+-------+-------------+--------------+
| Share options | | (2,428) | (127) |
| (reversed)/expensed | | | |
+------------------------------+-------+-------------+--------------+
| Impairment charge | | 368 | 9,306 |
+------------------------------+-------+-------------+--------------+
| Depreciation | | 38 | 55 |
+------------------------------+-------+-------------+--------------+
| Foreign exchange movements | | - | 880 |
| in Intangibles | | | |
+------------------------------+-------+-------------+--------------+
| Foreign exchange movements | | (55) | 77 |
| in Tangibles | | | |
+------------------------------+-------+-------------+--------------+
| Loss on disposal of | | 1,436 | 2,046 |
| subsidiary and plant & | | | |
| machinery | | | |
+------------------------------+-------+-------------+--------------+
| Bad debts written-off | | 17 | - |
+------------------------------+-------+-------------+--------------+
| Net cash outflow from | | (1,044) | (1,289) |
| operating activities | | | |
+------------------------------+-------+-------------+--------------+
| | | | |
+------------------------------+-------+-------------+--------------+
| Cash flows from investing | | | |
| activities | | | |
+------------------------------+-------+-------------+--------------+
| Interest Received | | 73 | 400 |
+------------------------------+-------+-------------+--------------+
| Payments to acquire | | (3,064) | (3,002) |
| intangible assets | | | |
+------------------------------+-------+-------------+--------------+
| Payments to acquire tangible | | - | (35) |
| assets | | | |
+------------------------------+-------+-------------+--------------+
| Net cash outflow from | | (2,991) | (2,637) |
| investing activities | | | |
+------------------------------+-------+-------------+--------------+
| | | | |
+------------------------------+-------+-------------+--------------+
| Acquisitions and disposals | | | |
+------------------------------+-------+-------------+--------------+
| Subsidiary disposed by | | (311) | - |
| change of status | | | |
+------------------------------+-------+-------------+--------------+
| Sale proceeds received on | | 32 | 11 |
| disposing of plant & | | | |
| machinery | | | |
+------------------------------+-------+-------------+--------------+
| Sale proceeds received on | | - | 334 |
| disposing of a subsidiary | | | |
+------------------------------+-------+-------------+--------------+
| Net cash inflow/(outflow) | | 279 | 345 |
| from acquisitions and | | | |
| disposals | | | |
+------------------------------+-------+-------------+--------------+
| | | | |
+------------------------------+-------+-------------+--------------+
| Net (decrease) in cash and | | (4,314) | (3,581) |
| cash equivalents | | | |
+------------------------------+-------+-------------+--------------+
| Cash and cash equivalents at | | 7,322 | 11,126 |
| beginning of period | | | |
+------------------------------+-------+-------------+--------------+
| Foreign exchange movements | | 72 | (223) |
| in reserves | | | |
+------------------------------+-------+-------------+--------------+
| Cash and cash equivalents at | 19 | 3,080 | 7,322 |
| end of period | | | |
+------------------------------+-------+-------------+--------------+
| | | | |
+------------------------------+-------+-------------+--------------+
Company Cash Flow Statement
for the year ended 31 December 2009
+------------------------------+-------+-------------+--------------+
| | | For the | For the year |
| | | year ended | ended |
| | | 31 December | 31 December |
| | | 2009 | 2008 |
+------------------------------+-------+-------------+--------------+
| |Notes | GBP 000's | GBP 000's |
+------------------------------+-------+-------------+--------------+
| Cash flows from operating | | | |
| activities | | | |
+------------------------------+-------+-------------+--------------+
| Operating Loss | | (1,815) | (16,613) |
+------------------------------+-------+-------------+--------------+
| (Increase)/decrease in trade | | 32 | (13) |
| and other receivables | | | |
+------------------------------+-------+-------------+--------------+
| (Decrease) in trade and | | (47) | (40) |
| other payables | | | |
+------------------------------+-------+-------------+--------------+
| Share options expensed | | (2,428) | (127) |
+------------------------------+-------+-------------+--------------+
| Impairment charge | | 3,330 | 15,311 |
+------------------------------+-------+-------------+--------------+
| Net cash (out)flow from | | (928) | (1,482) |
| operating activities | | | |
+------------------------------+-------+-------------+--------------+
| | | | |
+------------------------------+-------+-------------+--------------+
| Cash flows from investing | | | |
| activities | | | |
+------------------------------+-------+-------------+--------------+
| Interest Received | | 73 | 397 |
+------------------------------+-------+-------------+--------------+
| Investment in Dragon Mining | | (3,064) | - |
+------------------------------+-------+-------------+--------------+
| Loans to subsidiaries | | (307) | (2,628) |
+------------------------------+-------+-------------+--------------+
| Net cash outflow from in | | (3,298) | (2,231) |
| investing activities | | | |
+------------------------------+-------+-------------+--------------+
| | | | |
+------------------------------+-------+-------------+--------------+
| Acquisitions and disposals | | | |
+------------------------------+-------+-------------+--------------+
| Payments to acquire | | - | - |
| subsidiaries | | | |
+------------------------------+-------+-------------+--------------+
| Net cash outflow from | | - | - |
| acquisitions and disposals | | | |
+------------------------------+-------+-------------+--------------+
| | | | |
+------------------------------+-------+-------------+--------------+
| Cash flows from financing | | | |
| activities | | | |
+------------------------------+-------+-------------+--------------+
| Issue of ordinary share | | - | - |
| capital | | | |
+------------------------------+-------+-------------+--------------+
| Share issue costs | | - | - |
+------------------------------+-------+-------------+--------------+
| Net cash inflow from | | - | - |
| financing activities | | | |
+------------------------------+-------+-------------+--------------+
| | | | |
+------------------------------+-------+-------------+--------------+
| Net (decrease) in cash and | | (4,226) | (3,713) |
| cash equivalents | | | |
+------------------------------+-------+-------------+--------------+
| Cash and cash equivalents at | | 7,304 | 11,017 |
| beginning of period | | | |
+------------------------------+-------+-------------+--------------+
| Cash and cash equivalents at | 19 | 3,078 | 7,304 |
| end of period | | | |
+------------------------------+-------+-------------+--------------+
| | | | |
+------------------------------+-------+-------------+--------------+
Statement of Changes in Equity
for the year ended 31 December 2009
+------------------+----------+---------+---------+---------+------------+----------+----------+--------------+----------+----------+
| | Called | Share | Merger | Share | Available |Retained | Foreign | Total |Minority | Total |
| | up |premium |reserve | based | for sale |earnings |exchange | equity |Interest | equity |
| | share |reserve | |payment |investment | | reserve |attributable | | |
| | capital | | |reserve | reserve | | | to equity | | |
| | | | | | | | | holders of | | |
| | | | | | | | | the parent | | |
+------------------+----------+---------+---------+---------+------------+----------+----------+--------------+----------+----------+
| Group | GBP000's | GBP | GBP | GBP | GBP | GBP | GBP | GBP | GBP | GBP |
| | | 000's | 000's | 000's | 000's | 000's | 000's | 000's | 000's | 000's |
+------------------+----------+---------+---------+---------+------------+----------+----------+--------------+----------+----------+
| As at | 535 | 27,774 | 2,033 | 3,566 | - | (10,542) | (47) | 23,319 | - | 23,319 |
| 31 | | | | | | | | | | |
| December | | | | | | | | | | |
| 2007 | | | | | | | | | | |
+------------------+----------+---------+---------+---------+------------+----------+----------+--------------+----------+----------+
| Currency | - | - | - | - | - | - | (223) | (223) | - | (223) |
| translation | | | | | | | | | | |
| differences | | | | | | | | | | |
+------------------+----------+---------+---------+---------+------------+----------+----------+--------------+----------+----------+
| Loss | - | - | - | - | | (12,524) | - | (12,524) | (524) | (13,048) |
| for the | | | | | | | | | | |
| year | | | | | | | | | | |
+------------------+----------+---------+---------+---------+------------+----------+----------+--------------+----------+----------+
| Total | - | - | - | - | - | (12,524) | (223) | (12,747) | (524) | (13,271) |
| comprehensive | | | | | | | | | | |
| income | | | | | | | | | | |
+------------------+----------+---------+---------+---------+------------+----------+----------+--------------+----------+----------+
| Share | - | - | - | - | - | - | - | - | - | - |
| capital | | | | | | | | | | |
| issued | | | | | | | | | | |
+------------------+----------+---------+---------+---------+------------+----------+----------+--------------+----------+----------+
| Cost of | - | - | - | - | - | - | - | - | - | - |
| share | | | | | | | | | | |
| issue | | | | | | | | | | |
+------------------+----------+---------+---------+---------+------------+----------+----------+--------------+----------+----------+
| Impairment | - | - | (2,033) | - | - | - | - | (2,033) | - | (2,033) |
| charge | | | | | | | | | | |
+------------------+----------+---------+---------+---------+------------+----------+----------+--------------+----------+----------+
| Share | - | - | - | (127) | - | - | - | (127) | - | (127) |
| based | | | | | | | | | | |
| payments | | | | | | | | | | |
+------------------+----------+---------+---------+---------+------------+----------+----------+--------------+----------+----------+
| As at | 535 | 27,774 | - | 3,439 | - | (23,066) | (270) | 8,412 | (524) | 7,888 |
| 31 | | | | | | | | | | |
| December | | | | | | | | | | |
| 2008 | | | | | | | | | | |
+------------------+----------+---------+---------+---------+------------+----------+----------+--------------+----------+----------+
| Loss | - | - | - | - | - | (295) | - | (295) | - | (295) |
| for the | | | | | | | | | | |
| year | | | | | | | | | | |
+------------------+----------+---------+---------+---------+------------+----------+----------+--------------+----------+----------+
| Gain on | - | - | - | - | 300 | - | - | 300 | - | 300 |
| revaluation | | | | | | | | | | |
| of | | | | | | | | | | |
| available | | | | | | | | | | |
| for sale | | | | | | | | | | |
| investments | | | | | | | | | | |
+------------------+----------+---------+---------+---------+------------+----------+----------+--------------+----------+----------+
| Currency | - | - | - | - | - | - | 72 | 72 | - | 72 |
| translation | | | | | | | | | | |
| differences | | | | | | | | | | |
+------------------+----------+---------+---------+---------+------------+----------+----------+--------------+----------+----------+
| Total | - | - | - | - | 300 | (295) | 72 | 77 | - | 77 |
| comprehensive | | | | | | | | | | |
| income | | | | | | | | | | |
+------------------+----------+---------+---------+---------+------------+----------+----------+--------------+----------+----------+
| Share | - | - | - | - | - | - | - | - | - | - |
| capital | | | | | | | | | | |
| issued | | | | | | | | | | |
+------------------+----------+---------+---------+---------+------------+----------+----------+--------------+----------+----------+
| De-consolidation | - | - | - | - | - | 538 | - | 538 | 524 | 1,062 |
| of subsidiary | | | | | | | | | | |
+------------------+----------+---------+---------+---------+------------+----------+----------+--------------+----------+----------+
| Share | - | - | - | (2,428) | - | - | - | (2,428) | - | (2,428) |
| based | | | | | | | | | | |
| payments | | | | | | | | | | |
+------------------+----------+---------+---------+---------+------------+----------+----------+--------------+----------+----------+
| As at | 535 | 27,774 | - | 1,011 | 300 | (22,823) | (198) | 6,599 | - | 6,599 |
| 31 | | | | | | | | | | |
| December | | | | | | | | | | |
| 2009 | | | | | | | | | | |
+------------------+----------+---------+---------+---------+------------+----------+----------+--------------+----------+----------+
Statement of Changes in Equity
for the year ended 31 December 2009,
continued
+---------------+---------+---------+---------+------------+---------+----------+----------+
| | Called | Share | Merger | Available | Share |Retained | Total |
| | up |premium |reserve | for sale | based |earnings | equity |
| | share |reserve | |investment |payment | | |
| |capital | | | reserve |reserve | | |
+---------------+---------+---------+---------+------------+---------+----------+----------+
| Company | GBP | GBP | GBP | GBP | GBP | GBP | GBP |
| | 000's | 000's | 000's | 000's | 000's | 000's | 000's |
+---------------+---------+---------+---------+------------+---------+----------+----------+
| As at 31 | 535 | 27,774 | 7,033 | - | 3,566 | (3,944) | 34,964 |
| December | | | | | | | |
| 2007 | | | | | | | |
+---------------+---------+---------+---------+------------+---------+----------+----------+
| Impairment | - | - | (5,000) | - | - | - | (5,000) |
| charge on | | | | | | | |
| subsidiary, | | | | | | | |
| re: 2007 | | | | | | | |
+---------------+---------+---------+---------+------------+---------+----------+----------+
| Share | - | - | - | | - | - | - |
| capital | | | | | | | |
| issued | | | | | | | |
+---------------+---------+---------+---------+------------+---------+----------+----------+
| Cost of | - | - | - | - | - | - | - |
| share | | | | | | | |
| issue | | | | | | | |
+---------------+---------+---------+---------+------------+---------+----------+----------+
| Impairment | - | - | (2,033) | - | - | - | (2,033) |
| charge | | | | | | | |
+---------------+---------+---------+---------+------------+---------+----------+----------+
| Loss for | - | - | - | - | - | (16,215) | (16,215) |
| the year | | | | | | | |
+---------------+---------+---------+---------+------------+---------+----------+----------+
| Share | - | - | - | - | (127) | - | (127) |
| based | | | | | | | |
| payments | | | | | | | |
+---------------+---------+---------+---------+------------+---------+----------+----------+
| | | | | | | | |
+---------------+---------+---------+---------+------------+---------+----------+----------+
| As at 31 | 535 | 27,774 | - | - | 3,439 | (20,159) | 11,589 |
| December | | | | | | | |
| 2008 | | | | | | | |
+---------------+---------+---------+---------+------------+---------+----------+----------+
| | | | | | | | |
+---------------+---------+---------+---------+------------+---------+----------+----------+
| Gain on | - | - | - | 300 | - | - | 300 |
| revaluation | | | | | | | |
| of | | | | | | | |
| available | | | | | | | |
| for sale | | | | | | | |
| investments | | | | | | | |
+---------------+---------+---------+---------+------------+---------+----------+----------+
| Loss for | - | - | - | - | - | (1,742) | (1,742) |
| the year | | | | | | | |
+---------------+---------+---------+---------+------------+---------+----------+----------+
| Total | - | - | - | 300 | - | (1,742) | (1,442) |
| comprehensive | | | | | | | |
| income | | | | | | | |
+---------------+---------+---------+---------+------------+---------+----------+----------+
| Share | - | - | - | - | - | - | - |
| capital | | | | | | | |
| issued | | | | | | | |
+---------------+---------+---------+---------+------------+---------+----------+----------+
| Cost of | - | - | - | - | - | - | - |
| share | | | | | | | |
| issue | | | | | | | |
+---------------+---------+---------+---------+------------+---------+----------+----------+
| Share | - | - | - | - | (2,428) | - | (2,428) |
| based | | | | | | | |
| payments | | | | | | | |
+---------------+---------+---------+---------+------------+---------+----------+----------+
| | | | | | | | |
+---------------+---------+---------+---------+------------+---------+----------+----------+
| As at 31 | 535 | 27,774 | - | 300 | 1,011 | (21,901) | 7,719 |
| December | | | | | | | |
| 2009 | | | | | | | |
+---------------+---------+---------+---------+------------+---------+----------+----------+
+-----+-----------------------------------------+--------------------------+
| Notes to the Financial Statements | |
| for the year ended 31 December 2009 | |
+-----------------------------------------------+--------------------------+
| 1 | Summary of Significant Accounting Policies |
+-----+--------------------------------------------------------------------+
| (a) | Authorisation of financial statements |
+-----+--------------------------------------------------------------------+
| | The Group financial statements of Brinkley Mining Plc for the year |
| | ended 31 December 2009 were authorised for issue by the Board on |
| | 19 April 2010 and the balance sheets signed on the Board's behalf |
| | by Mr. Peter Gunzburg and Neil MacLachlan. The Company is a public |
| | limited Company incorporated in England & Wales under the |
| | Companies Act 2006. The Company's ordinary shares are traded on |
| | the AIM Market operated by the London Stock Exchange. |
+-----+--------------------------------------------------------------------+
| | |
+-----+--------------------------------------------------------------------+
| (b) | Statement of compliance with IFRS |
+-----+--------------------------------------------------------------------+
| | The Group's financial statements have been prepared in accordance |
| | with International Financial Reporting Standards (IFRS). The |
| | Company's financial statements have been prepared in accordance |
| | with IFRS as adopted by the European Union and as applied in |
| | accordance with the provisions of the Companies Act 2006. The |
| | principal accounting policies adopted by the Group and Company are |
| | set out below. |
| | New standards and interpretations not applied |
| | IASB and IFRIC have issued the following standards and |
| | interpretations with an effective date after the date of these |
| | financial statements: |
| | International Accounting Standards (IAS / IFRSs) and (Effective |
| | date) |
| | IFRS 2 Amendment to IFRS 2 - Group cash-settled and share-based |
| | payment transactions (1 January 2010) |
| | IFRS 3 Business Combinations - revised January 2008 (1 July 2009) |
| | IFRS 5 Measurement of non-current assets classified as |
| | held-for-sale (1 January 2010) |
| | IAS 27 Consolidated and Separate Financial Statements - revised |
| | January 2008 (1 July 2009) |
| | IAS 38 Intangible Assets (1 January 2010) |
| | International Financial Reporting Interpretations Committee |
| | (IFRIC) |
| | IFRIC 17 Distribution of non-cash assets to owners (1 July 2009) |
+-----+--------------------------------------------------------------------+
| | |
+-----+--------------------------------------------------------------------+
| (c) | Basis of preparation |
+-----+--------------------------------------------------------------------+
| | The consolidated financial statements have been prepared on the |
| | historical cost basis, except for the measurement to fair value of |
| | assets and financial instruments as described in the accounting |
| | policies below, and on a going concern basis. |
| | The financial report is presented in Sterling and all values are |
| | rounded to the nearest thousand pounds (GBP'000) unless otherwise |
| | stated. |
+-----+--------------------------------------------------------------------+
| | |
+-----+--------------------------------------------------------------------+
| (d) | Basis of consolidation |
+-----+--------------------------------------------------------------------+
| | The consolidated financial information incorporates the results of |
| | the Company and its subsidiaries (the "Group") using the purchase |
| | method. In the consolidated balance sheet, the acquiree's |
| | identifiable assets and liabilities are initially recognised at |
| | their fair values at the acquisition date. The results of acquired |
| | operations are included in the consolidated income statement from |
| | the date on which control is obtained. Inter-company transactions |
| | and balances between Group companies are eliminated in full. |
| | Minority interests represent the portion of profit or loss and net |
| | assets in subsidiaries that are not held by the Group and are |
| | presented separately in the income statement and within equity in |
| | the consolidated balance sheet. |
+-----+--------------------------------------------------------------------+
| | |
+-----+--------------------------------------------------------------------+
| (e) | Business combinations |
+-----+--------------------------------------------------------------------+
| | The acquisition of subsidiaries in a business combination is |
| | accounted for using the purchase method. The cost of the |
| | acquisition is measured at the aggregate of the fair values, at |
| | the date of exchange, of assets given, liabilities incurred or |
| | assumed, and equity instruments issued by the Group in exchange |
| | for control of the acquiree, plus any costs directly attributable |
| | to the business combination. The acquiree's identifiable assets, |
| | liabilities and contingent liabilities that meet the conditions |
| | for recognition under IFRS 3 are recognised at their fair value at |
| | the acquisition date, except for non-current assets (or disposal |
| | groups) that are classified as held for sale in accordance with |
| | IFRS 5 'Non Current Assets Held for Sale and Discontinued |
| | Operations', which are recognised and measured at fair value less |
| | costs to sell. |
| | Where there is a difference between the Group's interest in the |
| | net fair value of the acquiree's identifiable |
+-----+--------------------------------------------------------------------+
| | | |
+-----+-----------------------------------------+--------------------------+
+--+-----------------------------------------------------------------+----------+
| Notes to the Financial Statements | |
| for the year ended 31 December 2009, continued | |
+--------------------------------------------------------------------+----------+
| (e)| Business combinations (continued) |
+--+----------------------------------------------------------------------------+
| | assets, liabilities and contingent liabilities and the cost of | |
| | the business combination, any excess cost is recognised in the | |
| | balance sheet as goodwill and any excess net fair value is | |
| | recognised immediately in the income statement as negative | |
| | goodwill on acquisition of subsidiary. | |
| | The interest of minority shareholders in the acquiree is | |
| | initially measured at the minority's proportion of the net fair | |
| | value of the assets, liabilities and contingent liabilities | |
| | recognised. | |
+--+-----------------------------------------------------------------+----------+
| | | |
+--+-----------------------------------------------------------------+----------+
| (f)| Revenue | |
+--+-----------------------------------------------------------------+----------+
| | The Group had no revenue during the period ending 31 December | |
| | 2009. | |
+--+-----------------------------------------------------------------+----------+
| | | |
+--+-----------------------------------------------------------------+----------+
| (g)| Foreign currencies | |
+--+-----------------------------------------------------------------+----------+
| | The Company's functional currency is Sterling (GBP). Each | |
| | entity in the Group determines its own functional currency and | |
| | items included in the financial statements of each entity are | |
| | measured using that functional currency. As at the reporting | |
| | date the assets and liabilities of these subsidiaries are | |
| | translated into the presentation currency of Brinkley Mining | |
| | Plc at the rate of exchange ruling at the balance sheet date | |
| | and their income statements are translated at the average | |
| | exchange rate for the year. The exchange differences arising on | |
| | the translation are taken directly to a separate component of | |
| | equity. | |
| | All other differences are taken to the income statement with | |
| | the exception of differences on foreign currency borrowings, | |
| | which, to the extent that they are used to finance or provide a | |
| | hedge against foreign equity investments, are taken directly to | |
| | reserves to the extent of the exchange difference arising on | |
| | the net investment in these enterprises. Tax charges or credits | |
| | that are directly and solely attributable to such exchange | |
| | differences are also taken to reserves. | |
+--+-----------------------------------------------------------------+----------+
| | | |
+--+-----------------------------------------------------------------+----------+
| (h)| Goodwill and intangible assets | |
+--+-----------------------------------------------------------------+----------+
| | Intangible assets are recorded at cost less eventual | |
| | amortisation and provision for impairment in value. Goodwill on | |
| | consolidation is capitalised and shown within fixed assets. | |
| | Positive goodwill is subject to an annual impairment review, | |
| | and negative goodwill is immediately written-off to the income | |
| | statement when it arises. | |
+--+-----------------------------------------------------------------+----------+
| | | |
+--+-----------------------------------------------------------------+----------+
| (i)| Exploration and development costs | |
+--+-----------------------------------------------------------------+----------+
| | Exploration and development costs are carried forward in | |
| | respect of areas of interest where the consolidated entity's | |
| | rights to tenure are current and where these costs are expected | |
| | to be recouped through successful development and exploration, | |
| | or by sale. Alternatively, these costs are carried forward | |
| | while active and significant operations are continuing in | |
| | relation to the areas of interest and it is too early to make | |
| | reasonable assessment of the existence or otherwise of | |
| | economically recoverable reserves. When the area of interest is | |
| | abandoned, exploration and evaluation costs previously | |
| | capitalised are written off to the Income Statement. | |
| | In accordance with the full cost method, all costs associated | |
| | with mining development and investment are capitalised on a | |
| | project-by-project basis pending determination of the | |
| | feasibility of the project. Costs incurred include appropriate | |
| | technical and administrative expenses but not general | |
| | overheads. If a mining development project is successful, the | |
| | related expenditures will be written-off over the estimated | |
| | life of the commercial ore reserves on a unit of production | |
| | basis. Impairment reviews will be carried out regularly by the | |
| | Directors of the Company. Where a project is abandoned, or is | |
| | considered to be of no further commercial value to the Company, | |
| | the related costs will be written off. | |
| | The recoverability of deferred mining costs and mining | |
| | interests is dependent upon the discovery of economically | |
| | recoverable reserves, the ability of the Group to obtain | |
| | necessary financing to complete the development of reserves and | |
| | future profitable production or proceeds from the disposition | |
| | of recoverable reserves. | |
+--+-----------------------------------------------------------------+----------+
| | | |
+--+-----------------------------------------------------------------+----------+
| (j)| Significant accounting judgments, estimates and assumptions | |
+--+-----------------------------------------------------------------+----------+
| | (i) Significant accounting estimates and assumptions | |
| | The carrying amounts of certain assets and liabilities are | |
| | often determined based on estimates and assumptions of future | |
| | events. The key estimates and assumptions that have a | |
| | significant risk of causing a material adjustment to the | |
| | carrying amounts of certain assets and liabilities within the | |
| | next annual reporting period are: | |
+--+-----------------------------------------------------------------+----------+
| (j)| Significant accounting judgments, estimates and assumptions | |
| | (continued) | |
+--+-----------------------------------------------------------------+----------+
| | (ii) Impairment of goodwill and intangibles with indefinite | |
| | useful lives | |
| | The Group determines whether goodwill and intangibles with | |
| | indefinite useful lives are impaired at least on an annual | |
| | basis. This requires an estimation of the recoverable amount of | |
| | the cash-generating units to which the goodwill and intangibles | |
| | with indefinite useful lives are allocated. | |
| | (iii) Share-based payment transactions | |
| | The Group measures the cost of equity-settled transactions with | |
| | employees by reference to the fair value of the equity | |
| | instruments at the date at which they are granted. The fair | |
| | value is determined using a Black-Scholes model. | |
+--+-----------------------------------------------------------------+----------+
| | | |
+--+-----------------------------------------------------------------+----------+
| (k)| Finance costs/revenue | |
+--+-----------------------------------------------------------------+----------+
| | Borrowing costs are recognised as an expense when incurred. | |
| | Finance revenue is recognised as interest accrues using the | |
| | effective interest method. This is a method of calculating the | |
| | amortised cost of a financial asset and allocating the interest | |
| | income over the relevant period using the effective interest | |
| | rate, which is the rate that exactly discounts estimated future | |
| | cash receipts through the expected life of the financial asset | |
| | to the net carrying amount of the financial asset. | |
+--+-----------------------------------------------------------------+----------+
| | | |
+--+-----------------------------------------------------------------+----------+
| (l)| Cash and cash equivalents | |
+--+-----------------------------------------------------------------+----------+
| | Cash and short-term deposits in the balance sheet comprise cash | |
| | at bank and in hand and short-term deposits with an original | |
| | maturity of three months or less. | |
| | For the purposes of the Cash Flow Statement, cash and cash | |
| | equivalents consist of cash and cash equivalents as defined | |
| | above, net of outstanding bank overdrafts. | |
+--+-----------------------------------------------------------------+----------+
| | | |
+--+-----------------------------------------------------------------+----------+
| (m)| Trade and other receivables | |
+--+-----------------------------------------------------------------+----------+
| | Trade receivables, which generally have 30 day terms, are | |
| | recognised and carried at original invoice amount less an | |
| | allowance for any uncollectible amounts. | |
| | An allowance for doubtful debts is made when there is objective | |
| | evidence that the Group will not be able to collect the debts. | |
| | Bad debts are written off when identified. | |
+--+-----------------------------------------------------------------+----------+
| | | |
+--+-----------------------------------------------------------------+----------+
| (n)| Investments | |
+--+-----------------------------------------------------------------+----------+
| | Investments in subsidiary undertakings are stated at cost less | |
| | any provision for impairment in value, prior to their | |
| | elimination on consolidation. | |
+--+-----------------------------------------------------------------+----------+
| | | |
+--+-----------------------------------------------------------------+----------+
| (o)| Financial instruments | |
+--+-----------------------------------------------------------------+----------+
| | The Group's financial instruments, other than its investments, | |
| | comprise cash and items arising directly from its operation | |
| | such as trade debtors and trade creditors. The Group has | |
| | overseas subsidiaries in Cyprus and South Africa whose expenses | |
| | are denominated in Sterling, South African Rand and US Dollars | |
| | respectively. Market price risk is inherent in the Group's | |
| | activities and is accepted as such. | |
| | There is no material difference between the book value and fair | |
| | value of the Group's cash. | |
+--+-----------------------------------------------------------------+----------+
| | | |
+--+-----------------------------------------------------------------+----------+
| (p)| Deferred taxation | |
+--+-----------------------------------------------------------------+----------+
| | Deferred tax is the tax expected to be payable or recoverable | |
| | on differences between the carrying amounts of assets and | |
| | liabilities in the financial statements and the corresponding | |
| | tax bases used in the tax computations, and is accounted for | |
| | using the balance sheet liability method. Deferred tax | |
| | liabilities are generally recognised for all taxable temporary | |
| | differences and deferred tax assets are recognised to the | |
| | extent that it is probable that taxable profits will be | |
| | available against which deductible temporary differences can be | |
| | utilised. | |
+--+-----------------------------------------------------------------+----------+
| | Deferred tax is calculated at the tax rates that are expected | |
| | to apply in the period when the liability is settled or the | |
| | asset is realised. Deferred tax is charged or credited in the | |
| | income statement, except when it relates to items charged or | |
| | credited directly to equity, in which case it is also dealt | |
| | with in equity. | |
+--+-----------------------------------------------------------------+----------+
| | | |
| | | |
+--+-----------------------------------------------------------------+----------+
| (q)| Merger reserve | |
+--+-----------------------------------------------------------------+----------+
| | The difference between the fair value of an acquisition and the | |
| | nominal value of the shares allotted in a share exchange have | |
| | been credited to a merger reserve account, in accordance with | |
| | the merger relief provisions of the Companies Act 1985 & 2006 | |
| | and accordingly no share premium for such transactions is | |
| | set-up. | |
+--+-----------------------------------------------------------------+----------+
| | | |
+--+-----------------------------------------------------------------+----------+
| (r)| Share based payments reserve | |
+--+-----------------------------------------------------------------+----------+
| | This reserve is used to record the value of equity benefits | |
| | provided to employees and directors as part of their | |
| | remuneration and provided to consultants and advisors hired by | |
| | the Group from time to time as part of the consideration paid. | |
+--+-----------------------------------------------------------------+----------+
| | | |
+--+-----------------------------------------------------------------+----------+
| (s)| Foreign Currency Translation Reserve | |
+--+-----------------------------------------------------------------+----------+
| | The foreign currency translation reserve is used to record | |
| | exchange differences arising from the translation of the | |
| | financial statements of foreign subsidiaries. | |
+--+-----------------------------------------------------------------+----------+
| | | |
+--+-----------------------------------------------------------------+----------+
| (t)| Property, plant and equipment | |
+--+-----------------------------------------------------------------+----------+
| | Plant and equipment is stated at cost less accumulated | |
| | depreciation and any accumulated impairment losses. Land is | |
| | measured at fair value less any impairment losses recognised | |
| | after the date of revaluation. | |
| | Depreciation is provided on all tangible assets to write off | |
| | the cost less estimated residual value of each asset over its | |
| | expected useful economic life on a straight-line basis at the | |
| | following annual rates: Land (including option costs) - Nil | |
| | Plant and Equipment - between 5% and 25% | |
| | All assets are subject to annual impairment reviews. | |
+--+-----------------------------------------------------------------+----------+
| | | |
+--+-----------------------------------------------------------------+----------+
| (u)| Impairment of assets | |
+--+-----------------------------------------------------------------+----------+
| | The Group assesses at each reporting date whether there is an | |
| | indication that an asset may be impaired. If any such | |
| | indication exists, or when annual impairment testing for an | |
| | asset is required, the Group makes an estimate of the asset's | |
| | recoverable amount. An asset's recoverable amount is the higher | |
| | of its fair value less costs to sell and its value in use and | |
| | is determined for an individual asset, unless the asset does | |
| | not generate cash inflows that are largely independent of those | |
| | from other assets or Groups of assets and the asset's value in | |
| | use cannot be estimated to be close to its fair value. In such | |
| | cases the asset is tested for impairment as part of the | |
| | cash-generating unit to which it belongs. When the carrying | |
| | amount of an asset or cash-generating unit exceeds its | |
| | recoverable amount, the asset or cash-generating unit is | |
| | considered impaired and is written down to its recoverable | |
| | amount. | |
+--+-----------------------------------------------------------------+----------+
| | 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. Impairment losses | |
| | relating to continuing operations are recognised in those | |
| | expense categories consistent with the function of the impaired | |
| | asset unless the asset is carried at revalued amount (in which | |
| | case the impairment loss is treated as a revaluation decrease). | |
| | An assessment is also made at each reporting date as to whether | |
| | there is any indication that previously recognised impairment | |
| | losses may no longer exist or may have decreased. If such | |
| | indication exists, the recoverable amount is estimated. A | |
| | previously recognised impairment loss is reversed only if there | |
| | has been a change in the estimates used to determine the | |
| | asset's recoverable amount since the last impairment loss was | |
| | recognised. If that is the case the carrying amount of the | |
| | asset is increased to its recoverable amount. That increased | |
| | amount cannot exceed the carrying amount that would have been | |
| | determined, net of depreciation, had no impairment loss been | |
| | recognised for the asset in prior years. Such reversal is | |
| | recognised in the Income Statement unless the asset is carried | |
| | at revalued amount, in which case the reversal is treated as a | |
| | revaluation increase. After such a reversal the depreciation | |
| | charge is adjusted in future periods to allocate the asset's | |
| | revised carrying amount, less any residual value, on a | |
| | systematic basis over its remaining useful life. | |
+--+-----------------------------------------------------------------+----------+
| | | |
+--+-----------------------------------------------------------------+----------+
| (v)| Trade and other payables | |
+--+-----------------------------------------------------------------+----------+
| | Trade payables and other payables are carried at amortised cost | |
| | and represent liabilities for goods and services provided to | |
| | the Group prior to the end of the financial year that are | |
| | unpaid and arise when the Group becomes obliged to make future | |
| | payments in respect of the purchase of these goods and | |
| | services. | |
+--+-----------------------------------------------------------------+----------+
| | | |
| | | |
+--+-----------------------------------------------------------------+----------+
| (w)| Provisions | |
+--+-----------------------------------------------------------------+----------+
| | Provisions are recognised when the Group has a present | |
| | obligation (legal or constructive) as a result of a past event, | |
| | it is probable that an outflow of resources embodying economic | |
| | benefits will be required to settle the obligation and a | |
| | reliable estimate can be made of the amount of the obligation. | |
| | When the Group expects some or all of a provision to be | |
| | reimbursed, for example under an insurance contract, the | |
| | reimbursement is recognised as a separate asset but only when | |
| | the reimbursement is virtually certain. The expense relating to | |
| | any provision is presented in the income statement net of any | |
| | reimbursement. | |
+--+-----------------------------------------------------------------+----------+
| | | |
+--+-----------------------------------------------------------------+----------+
| (x)| Share-based payment transactions | |
+--+-----------------------------------------------------------------+----------+
| | (i) Equity settled transactions: | |
| | The Group provides benefits to employees (including senior | |
| | executives) of the Group in the form of share-based payments, | |
| | whereby employees render services in exchange for shares or | |
| | rights over shares (equity-settled transactions). | |
| | The cost of these equity-settled transactions with employees is | |
| | measured by reference to the fair value of the equity | |
| | instruments at the date at which they are granted. The fair | |
| | value is determined by using a Black-Scholes model. | |
| | In valuing equity-settled transactions, no account is taken of | |
| | any performance conditions, other than conditions linked to the | |
| | price of the shares of Brinkley Mining Plc (market conditions) | |
| | if applicable. | |
| | The cost of equity-settled transactions is recognised, together | |
| | with a corresponding increase in equity, over the period in | |
| | which the performance and/or service conditions are fulfilled, | |
| | ending on the date on which the relevant employees become fully | |
| | entitled to the award (the vesting period). | |
| | The cumulative expense recognised for equity-settled | |
| | transactions at each reporting date until vesting date reflects | |
| | (i) the extent to which the vesting period has expired and (ii) | |
| | the Group's best estimate of the number of equity instruments | |
| | that will ultimately vest. No adjustment is made for the | |
| | likelihood of market performance conditions being met as the | |
| | effect of these conditions is included in the determination of | |
| | fair value at grant date. The Income Statement charge or credit | |
| | for a period represents the movement in cumulative expense | |
| | recognised as at the beginning and end of that period. | |
| | No expense is recognised for awards that do not ultimately | |
| | vest, except for awards where vesting is only conditional upon | |
| | a market condition. | |
| | If the terms of an equity-settled award are modified, as a | |
| | minimum an expense is recognised as if the terms had not been | |
| | modified. In addition, an expense is recognised for any | |
| | modification that increases the total fair value of the | |
| | share-based payment arrangement, or is otherwise beneficial to | |
| | the employee, as measured at the date of modification. | |
| | If an equity-settled award is cancelled, it is treated as if it | |
| | had vested on the date of cancellation, and any expense not yet | |
| | recognised for the award is recognised immediately. However, if | |
| | a new award is substituted for the cancelled award and | |
| | designated as a replacement award on the date that it is | |
| | granted, the cancelled and new award are treated as if they | |
| | were a modification of the original award, as described in the | |
| | previous paragraph. | |
| | The dilutive effect, if any, of outstanding options is | |
| | reflected as additional share dilution in the computation of | |
| | earnings per share (see Note 8). | |
+--+-----------------------------------------------------------------+----------+
| | | |
+--+-----------------------------------------------------------------+----------+
| (y)| Earnings per share | |
+--+-----------------------------------------------------------------+----------+
| | Basic earnings per share is calculated as net profit | |
| | attributable to members of the parent, adjusted to exclude any | |
| | costs of servicing equity (other than dividends) and preference | |
| | share dividends, divided by the weighted average number of | |
| | ordinary shares, adjusted for any bonus element. | |
| | Diluted earnings per share is calculated as net profit | |
| | attributable to members of the parent, adjusted for: | |
| | - costs of servicing equity (other than dividends) and | |
| | preference share dividends; | |
| | - the after tax effect of dividends and interest associated | |
| | with dilutive potential ordinary shares that have been | |
| | recognised as expenses; and | |
| | - other non-discretionary changes in revenues or expenses | |
| | during the period that would result from the dilution of | |
| | potential ordinary shares; divided by the weighted average | |
| | number of ordinary shares and dilutive potential ordinary | |
| | shares, adjusted for any bonus element. | |
+--+-----------------------------------------------------------------+----------+
+-----+--------------+----------+--------+-+-------+-------+--+-----+----------+-------+------+----------+----------------+
| Notes to the Financial Statements |
| for the year ended 31 December 2009, continued |
+-------------------------------------------------------------------------------------------------------------------------+
| (z) | Available for sale Investments |
+-----+-------------------------------------------------------------------------------------------------------------------+
| | Equity investments intended to be held for an indefinite period of time are classified as |
| | available-for-sale investments. They are carried at fair value, where this can be reliably |
| | measured, with movements in fair value recognised directly in the available-for-sale reserve. |
| | Where the fair value cannot be reliably measured, the investment is carried at cost. |
| | Any impairment losses in equity investments classified as available-for-sale investments are |
| | recognised in the income statement and are not reversible through the income statement, and are |
| | determined with reference to the closing market share price at the balance sheet date. Any |
| | subsequent increase in the fair value of the available-for-sale investment above the impaired |
| | value will be recognised within the available-for-sale reserve. |
| | Available-for-sale investments are included within non-current assets unless the carrying value |
| | is expected to be recovered principally through sale rather than continuing use, in which case |
| | they are included within current assets. On disposal, the difference between the carrying amount |
| | and the sum of the consideration received and any cumulative gain or loss that had previously |
| | been recognised directly in reserves is recognised in the income statement. |
| | Income from available for sale investments is accounted for in the income statement on an |
| | accruals basis. |
+-----+-------------------------------------------------------------------------------------------------------------------+
| | |
+-----+-------------------------------------------------------------------------------------------------------------------+
| 2 | Turnover and segmental analysis |
+-----+-------------------------------------------------------------------------------------------------------------------+
| | The Group has not commenced operationally and therefore recorded no turnover. |
| | As a result of the current progress of the Group and Company, management does not produce |
| | segmental information other than in respect of geographical areas, and there are no products or |
| | divisions on which to report. Production of any segmental analysis more in depth than below |
| | would result in excessive costs to ascertain, and be uninformative to the reader of the |
| | information. |
| | The analysis of the operating loss before taxation and the net assets employed by geographical |
| | segment of operations is shown below; |
+-----+-------------------------------------------------------------------------------------------------------------------+
| | |
+-----+-------------------------------------------------------------------------------------------------------------------+
| | By geographical area |
+-----+-------------------------------------------------------------------------------------------------------------------+
| | 2009 | UK | South | Sudan | Cyprus | Total |
| | | | Africa | | | |
+-----+--------------+-------------------+-----------------+-------------------+--------------+---------------------------+
| | | GBP 000's | GBP 000's | GBP 000's | GBP 000's | GBP 000's |
+-----+--------------+-------------------+-----------------+-------------------+--------------+---------------------------+
| | Result | | | | | |
+-----+--------------+-------------------+-----------------+-------------------+--------------+---------------------------+
| | Operating | (588) | 578 | (286) | (72) | (368) |
| | loss | | | | | |
+-----+--------------+-------------------+-----------------+-------------------+--------------+---------------------------+
| | Investment | 73 | - | - | - | 73 |
| | revenue | | | | | |
+-----+--------------+-------------------+-----------------+-------------------+--------------+---------------------------+
| | Loss before | (515) | 578 | (286) | (72) | (295) |
| | & after tax | | | | | |
+-----+--------------+-------------------+-----------------+-------------------+--------------+---------------------------+
| | | | | | | |
+-----+--------------+-------------------+-----------------+-------------------+--------------+---------------------------+
| | Other | | | | | |
| | information | | | | | |
+-----+--------------+-------------------+-----------------+-------------------+--------------+---------------------------+
| | Depreciation | - | 207 | 199 | - | 406 |
| | and | | | | | |
| | impairment | | | | | |
+-----+--------------+-------------------+-----------------+-------------------+--------------+---------------------------+
| | Capital | - | - | - | - | - |
| | additions | | | | | |
+-----+--------------+-------------------+-----------------+-------------------+--------------+---------------------------+
| | | | | | | |
+-----+--------------+-------------------+-----------------+-------------------+--------------+---------------------------+
| | Assets | | | | | |
+-----+--------------+-------------------+-----------------+-------------------+--------------+---------------------------+
| | Segment | - | 141 | - | - | 141 |
| | assets | | | | | |
+-----+--------------+-------------------+-----------------+-------------------+--------------+---------------------------+
| | Financial | 3,411 | - | - | - | 3,411 |
| | assets | | | | | |
+-----+--------------+-------------------+-----------------+-------------------+--------------+---------------------------+
| | Cash | 3,079 | 1 | - | - | 3,080 |
+-----+--------------+-------------------+-----------------+-------------------+--------------+---------------------------+
| | Consolidated | 6,490 | 142 | - | - | 6,632 |
| | total assets | | | | | |
+-----+--------------+-------------------+-----------------+-------------------+--------------+---------------------------+
| | | | | | | |
+-----+--------------+-------------------+-----------------+-------------------+--------------+---------------------------+
| | Liabilities | | | | | |
+-----+--------------+-------------------+-----------------+-------------------+--------------+---------------------------+
| | Segment | - | - | - | - | - |
| | liabilities | | | | | |
+-----+--------------+-------------------+-----------------+-------------------+--------------+---------------------------+
| | Financial | 23 | 4 | 1 | 5 | 33 |
| | liabilities | | | | | |
+-----+--------------+-------------------+-----------------+-------------------+--------------+---------------------------+
| | Consolidated | 23 | 4 | 1 | 5 | 33 |
| | total | | | | | |
| | liabilities | | | | | |
+-----+--------------+-------------------+-----------------+-------------------+--------------+---------------------------+
| Notes to the Financial Statements |
| for the year ended 31 December 2009, continued |
+-------------------------------------------------------------------------------------------------------------------------+
| 2 | Turnover and segmental analysis, continued |
+-----+-------------------------------------------------------------------------------------------------------------------+
| | 2008 | UK | South | DRC | Sudan | Chad | Niger | Cyprus | Total |
| | | | Africa | | | | | | |
+-----+--------------+----------+----------+-------+----------+----------------+-------+-----------------+----------------+
| | | GBP | GBP000's | GBP | GBP000's | GBP000's | GBP | GBP 000's | GBP 000's |
| | | 000's | | 000's | | | 000's | | |
+-----+--------------+----------+----------+-------+----------+----------------+-------+-----------------+----------------+
| | Result | | | | | | | | |
+-----+--------------+----------+----------+-------+----------+----------------+-------+-----------------+----------------+
| | Operating | (10,613) | (2,701) | 207 | (361) | 1 | 3 | 16 | (13,448) |
| | loss | | | | | | | | |
+-----+--------------+----------+----------+-------+----------+----------------+-------+-----------------+----------------+
| | Investment | 397 | 3 | - | - | - | - | - | 400 |
| | revenue | | | | | | | | |
+-----+--------------+----------+----------+-------+----------+----------------+-------+-----------------+----------------+
| | Loss before | (10,216) | (2,698) | 207 | (361) | 1 | 3 | 16 | (13,048) |
| | & after tax | | | | | | | | |
+-----+--------------+----------+----------+-------+----------+----------------+-------+-----------------+----------------+
| | | | | | | | | | |
+-----+--------------+----------+----------+-------+----------+----------------+-------+-----------------+----------------+
| | Other | | | | | | | | |
| | information | | | | | | | | |
+-----+--------------+----------+----------+-------+----------+----------------+-------+-----------------+----------------+
| | Depreciation | - | 4,971 | 5,513 | 259 | 651 | - | - | 11,394 |
| | & Impairment | | | | | | | | |
+-----+--------------+----------+----------+-------+----------+----------------+-------+-----------------+----------------+
| | Capital | - | 161 | 997 | 199 | 225 | 1,455 | - | 3,037 |
| | additions | | | | | | | | |
+-----+--------------+----------+----------+-------+----------+----------------+-------+-----------------+----------------+
| | | | | | | | | | |
+-----+--------------+----------+----------+-------+----------+----------------+-------+-----------------+----------------+
| | Assets | | | | | | | | |
+-----+--------------+----------+----------+-------+----------+----------------+-------+-----------------+----------------+
| | Segment | - | 405 | - | 199 | - | - | - | 604 |
| | assets | | | | | | | | |
+-----+--------------+----------+----------+-------+----------+----------------+-------+-----------------+----------------+
| | Financial | 79 | 59 | - | - | - | - | - | 138 |
| | assets | | | | | | | | |
+-----+--------------+----------+----------+-------+----------+----------------+-------+-----------------+----------------+
| | Cash | 7,304 | 18 | - | - | - | - | - | 7,322 |
+-----+--------------+----------+----------+-------+----------+----------------+-------+-----------------+----------------+
| | Consolidated | 7,383 | 482 | - | 199 | - | - | - | 8,064 |
| | total assets | | | | | | | | |
+-----+--------------+----------+----------+-------+----------+----------------+-------+-----------------+----------------+
| | | | | | | | | | |
+-----+--------------+----------+----------+-------+----------+----------------+-------+-----------------+----------------+
| | Liabilities | | | | | | | | |
+-----+--------------+----------+----------+-------+----------+----------------+-------+-----------------+----------------+
| | Segment | - | - | - | - | - | - | - | - |
| | liabilities | | | | | | | | |
+-----+--------------+----------+----------+-------+----------+----------------+-------+-----------------+----------------+
| | Financial | 69 | 17 | - | 85 | 1 | - | 4 | 176 |
| | liabilities | | | | | | | | |
+-----+--------------+----------+----------+-------+----------+----------------+-------+-----------------+----------------+
| | Consolidated | 69 | 17 | - | 85 | 1 | - | 4 | 176 |
| | total | | | | | | | | |
| | liabilities | | | | | | | | |
+-----+--------------+----------+----------+-------+----------+----------------+-------+-----------------+----------------+
| | | | | | | | | | |
+-----+--------------+----------+----------+-------+----------+----------------+-------+-----------------+----------------+
| | |
+-----+-------------------------------------------------------------------------------------------------------------------+
| 3 | Operating loss |
+-----+-------------------------------------------------------------------------------------------------------------------+
| | | | 2009 | 2008 |
+-----+--------------------------------------------+----------------+-------------------------+---------------------------+
| | Operating loss is arrived at | | GBP 000's | GBP 000's |
| | after charging: | | | |
+-----+--------------------------------------------+----------------+-------------------------+---------------------------+
| | Auditors' remuneration - audit | | 35 | 48 |
+-----+--------------------------------------------+----------------+-------------------------+---------------------------+
| | Auditors' remuneration - non | | 2 | 2 |
| | audit services (accounting | | | |
| | advice) | | | |
+-----+--------------------------------------------+----------------+-------------------------+---------------------------+
| | Directors' emoluments - fees and | | 525 | 889 |
| | salaries | | | |
+-----+--------------------------------------------+----------------+-------------------------+---------------------------+
| | Directors' emoluments - share | | - | 202 |
| | based payments | | | |
+-----+--------------------------------------------+----------------+-------------------------+---------------------------+
| | Bad debts written off | | 17 | - |
+-----+--------------------------------------------+----------------+-------------------------+---------------------------+
| | Depreciation | | 38 | 55 |
+-----+--------------------------------------------+----------------+-------------------------+---------------------------+
| |
+-------------------------------------------------------------------------------------------------------------------------+
| | Auditors remuneration for audit services above includes GBP8,135 (2008: GBP9,778) charges by MGI |
| | Gregoriou & Co Certified Public Accountants (Cyprus) and GBP5,213 (2008: GBP8,736) charged by |
| | Moore Stephens MWM Inc. Chartered Accountants (S.A) relating to the audit of the subsidiary |
| | companies. |
+-----+-------------------------------------------------------------------------------------------------------------------+
| | | | | | | | | | | | | | |
+-----+--------------+----------+--------+-+-------+-------+--+-----+----------+-------+------+----------+----------------+
+--+------------------------------------+-------------+-------------+
| Notes to the Financial Statements |
| for the year ended 31 December 2009, continued |
+-------------------------------------------------------------------+
| 4| Employee information | 2009 | 2008 |
+--+------------------------------------+-------------+-------------+
| | Staff Costs comprised: | GBP 000's | GBP 000's |
+--+------------------------------------+-------------+-------------+
| | Wages and salaries | 72 | 288 |
+--+------------------------------------+-------------+-------------+
| | | | |
+--+------------------------------------+-------------+-------------+
| | Number of employees (including | Number | Number |
| | directors) | | |
+--+------------------------------------+-------------+-------------+
| | Administration | 7 | 9 |
+--+------------------------------------+-------------+-------------+
| | Operations | 1 | 4 |
+--+------------------------------------+-------------+-------------+
| | | 8 | 13 |
+--+------------------------------------+-------------+-------------+
| | | | |
+--+------------------------------------+-------------+-------------+
| 5| Taxation | 2009 | 2008 |
+--+------------------------------------+-------------+-------------+
| | Analysis of charge in period | GBP 000's | GBP 000's |
+--+------------------------------------+-------------+-------------+
| | Tax on ordinary activities | - | - |
+--+------------------------------------+-------------+-------------+
| | | | |
+--+------------------------------------+-------------+-------------+
| | No taxation has been provided due to losses in the year. |
+--+----------------------------------------------------------------+
| | |
+--+----------------------------------------------------------------+
| | Factors affecting the tax charge for the period |
+--+----------------------------------------------------------------+
| | | GBP 000's | GBP 000's |
+--+------------------------------------+-------------+-------------+
| | Loss on ordinary activities before | (295) | (13,048) |
| | tax | | |
+--+------------------------------------+-------------+-------------+
| | | | |
+--+------------------------------------+-------------+-------------+
| | Standard rate of corporation tax | 28% | 28.5% |
| | in the UK | | |
+--+------------------------------------+-------------+-------------+
| | | | |
+--+------------------------------------+-------------+-------------+
| | | GBP 000's | GBP 000's |
+--+------------------------------------+-------------+-------------+
| | Loss on ordinary activities | | |
| | multiplied by the standard rate of | (83) | (3,719) |
| | corporation tax | | |
+--+ + + +
| | | | |
+--+------------------------------------+-------------+-------------+
| | Effects of: | | |
+--+------------------------------------+-------------+-------------+
| | Non deductible expenses | 71 | 3,033 |
+--+------------------------------------+-------------+-------------+
| | Future tax benefit not brought to | 12 | 686 |
| | account | | |
+--+------------------------------------+-------------+-------------+
| | Current tax charge for period | - | - |
+--+------------------------------------+-------------+-------------+
| | |
+--+----------------------------------------------------------------+
| | No deferred tax asset has been recognised because there is |
| | insufficient evidence of the timing of suitable future profits |
| | against which they can be recovered. |
+--+------------------------------------+-------------+-------------+
+--+----------------------+-----------+-------------+---------+---------+
| Notes to the Financial Statements |
| for the year ended 31 December 2009, continued |
+-----------------------------------------------------------------------+
| 6| Dividends |
+--+--------------------------------------------------------------------+
| | No dividends were paid or proposed by the Directors. (2008: |
| | GBPnil) |
+--+--------------------------------------------------------------------+
| | |
+--+--------------------------------------------------------------------+
| 7| Directors' emoluments |
+--+--------------------------------------------------------------------+
| | | | | 2009 | 2008 |
+--+----------------------+-----------+-------------+---------+---------+
| | | | | GBP | GBP |
| | | | | 000's | 000's |
+--+----------------------+-----------+-------------+---------+---------+
| | Directors' | | | 525 | 1,091 |
| | remuneration | | | | |
+--+----------------------+-----------+-------------+---------+---------+
| | | | | | |
+--+----------------------+-----------+-------------+---------+---------+
| | | | | | |
+--+----------------------+-----------+-------------+---------+---------+
| | 2009 | Directors | Consultancy | Shares/ | Total |
| | | Fees | Fees | Options | |
+--+----------------------+-----------+-------------+---------+---------+
| | | GBP | GBP | GBP | GBP |
| | | 000's | 000's | 000's | 000's |
+--+----------------------+-----------+-------------+---------+---------+
| | Executive Directors | | | | |
+--+----------------------+-----------+-------------+---------+---------+
| | Peter Gunzburg (#) | 6 | - | - | 6 |
+--+----------------------+-----------+-------------+---------+---------+
| | Dunbar Dales (#) (A) | 42 | 196 | - | 238 |
+--+----------------------+-----------+-------------+---------+---------+
| | Mark Fresson (#) | 120 | - | - | 120 |
+--+----------------------+-----------+-------------+---------+---------+
| | | | | | |
+--+----------------------+-----------+-------------+---------+---------+
| | Non-Executive | | | | |
| | Directors | | | | |
+--+----------------------+-----------+-------------+---------+---------+
| | Clayton Dodd | 44 | - | - | 44 |
+--+----------------------+-----------+-------------+---------+---------+
| | Neil MacLachlan (#) | 4 | - | - | 4 |
+--+----------------------+-----------+-------------+---------+---------+
| | Richard Linnell (#) | 36 | 77 | - | 113 |
| | (B) | | | | |
+--+----------------------+-----------+-------------+---------+---------+
| | | 252 | 273 | - | 525 |
+--+----------------------+-----------+-------------+---------+---------+
| | | | | | |
+--+----------------------+-----------+-------------+---------+---------+
| | 2008 | | | | |
+--+----------------------+-----------+-------------+---------+---------+
| | Executive Directors | | | | |
+--+----------------------+-----------+-------------+---------+---------+
| | Donald Strang (#) | 14 | 176 | - | 190 |
+--+----------------------+-----------+-------------+---------+---------+
| | Gerard Holden (#) | 5 | 392 | - | 397 |
+--+----------------------+-----------+-------------+---------+---------+
| | Dunbar Dales (#) (A) | 15 | 69 | 36 | 120 |
+--+----------------------+-----------+-------------+---------+---------+
| | Mark Fresson (#) | 47 | - | 2 | 49 |
+--+----------------------+-----------+-------------+---------+---------+
| | | | | | |
+--+----------------------+-----------+-------------+---------+---------+
| | Non-Executive | | | | |
| | Directors | | | | |
+--+----------------------+-----------+-------------+---------+---------+
| | Zodwa Manase | 40 | - | - | 40 |
+--+----------------------+-----------+-------------+---------+---------+
| | Clayton Dodd | 50 | - | - | 50 |
+--+----------------------+-----------+-------------+---------+---------+
| | Kiran Morzaria (#) | 18 | 7 | - | 25 |
+--+----------------------+-----------+-------------+---------+---------+
| | Calvyn Gardener (#) | - | - | - | - |
+--+----------------------+-----------+-------------+---------+---------+
| | Richard Linnell (#) | 18 | 38 | 164 | 220 |
| | (B) | | | | |
+--+----------------------+-----------+-------------+---------+---------+
| | | 207 | 682 | 202 | 1091 |
+--+----------------------+-----------+-------------+---------+---------+
| | |
+--+--------------------------------------------------------------------+
| | (#): These Directors were not employed for the whole of the |
| | financial year. |
+--+--------------------------------------------------------------------+
| | (A): Consulting services provided by Dales Project |
| | Management cc was GBP18,668. |
+--+--------------------------------------------------------------------+
| | (B): Consultancy services provided by Terra Africa |
| | Investments Ltd. |
+--+--------------------------------------------------------------------+
| | No pension benefits are provided for any Director. |
+--+----------------------+-----------+-------------+---------+---------+
+----+----------------------------+-+-------+----+------+-----+----------+----------+----------------+
| Notes to the Financial Statements |
| for the year ended 31 December 2009, continued |
+----------------------------------------------------------------------------------------------------+
| 8 | Loss per share |
+----+-----------------------------------------------------------------------------------------------+
| | The Loss for the period attributed to shareholders is GBP0.295 million. |
| | This is divided by the weighted average number of Ordinary shares outstanding calculated to |
| | be 356.3 million (2008: 356.3 million) to give a basic loss per share of 0.08 pence (2008: |
| | 3.66 pence). |
| | As inclusion of the potential Ordinary shares would result in a decrease in the loss per |
| | share they are considered to be anti-dilutive. |
+----+-----------------------------------------------------------------------------------------------+
| | |
+----+-----------------------------------------------------------------------------------------------+
| 9 | Finance revenue | 2009 | 2008 |
+----+-------------------------------------------+-----------------------+---------------------------+
| | | GBP 000's | GBP 000's |
+----+-------------------------------------------+-----------------------+---------------------------+
| | Bank interest receivable | 73 | 400 |
+----+-------------------------------------------+-----------------------+---------------------------+
| | |
+----+-----------------------------------------------------------------------------------------------+
| 10 | Intangible assets |
+----+-----------------------------------------------------------------------------------------------+
| | |
+----+-----------------------------------------------------------------------------------------------+
| | Group | | GBP 000's | |
+----+------------------------------+------------+------------+--------------------------------------+
| | Cost | | | |
+----+------------------------------+------------+------------+--------------------------------------+
| | As at 1 January 2009 | | 3,204 | |
+----+------------------------------+------------+------------+--------------------------------------+
| | Additions | | - | |
+----+------------------------------+------------+------------+--------------------------------------+
| | Transfers and disposals | | (2,646) | |
+----+------------------------------+------------+------------+--------------------------------------+
| | As at 31 December 2009 | | 558 | |
+----+------------------------------+------------+------------+--------------------------------------+
| | | | | |
+----+------------------------------+------------+------------+--------------------------------------+
| | Impairment and disposals | | | |
+----+------------------------------+------------+------------+--------------------------------------+
| | As at 1 January 2009 | | 2,905 | |
+----+------------------------------+------------+------------+--------------------------------------+
| | Impairment charge | | 299 | |
+----+------------------------------+------------+------------+--------------------------------------+
| | Transfers and disposals | | (2,646) | |
+----+------------------------------+------------+------------+--------------------------------------+
| | Foreign exchange adjustment | | - | |
+----+------------------------------+------------+------------+--------------------------------------+
| | As at 31 December 2009 | | 558 | |
+----+------------------------------+------------+------------+--------------------------------------+
| | | | | |
+----+------------------------------+------------+------------+--------------------------------------+
| | Net Book Value | | | |
+----+------------------------------+------------+------------+--------------------------------------+
| | As at 31 December 2008 | | 299 | |
+----+------------------------------+------------+------------+--------------------------------------+
| | | | | |
+----+------------------------------+------------+------------+--------------------------------------+
| | As at 31 December 2009 | | - | |
+----+------------------------------+------------+------------+--------------------------------------+
| | | | | |
+----+------------------------------+------------+------------+--------------------------------------+
| | | | 2009 | 2008 |
+----+------------------------------+------------+------------+--------------------------------------+
| | The Net Book Value is | | GBP 000's | GBP 000's |
| | analysed as follows: | | | |
+----+------------------------------+------------+------------+--------------------------------------+
| | Deferred exploration | | - | 299 |
| | expenditure | | | |
+----+------------------------------+------------+------------+--------------------------------------+
| | Commercial rights | | - | - |
+----+------------------------------+------------+------------+--------------------------------------+
| | | | - | 299 |
+----+------------------------------+------------+------------+--------------------------------------+
| | Impairment Review |
+----+-----------------------------------------------------------------------------------------------+
| | Further to the impairment review carried out on 31 December 2008, the Directors have reviewed |
| | the carrying value of the intangible assets relating to South Africa and Southern Sudan. The |
| | Southern Sudan deferred exploration expenditure has been written down to GBPNil in light of |
| | the latest geological interpretation and assessment of the security / country risks. |
| | A further review of the residual carrying value in relation to South Africa was carried out. |
| | It was decided that the project was unviable and the deferred exploration expenditure has |
| | been written down to GBPnil. |
| | |
| | |
+----+-----------------------------------------------------------------------------------------------+
| Notes to the Financial Statements |
| for the year ended 31 December 2009, continued |
+----------------------------------------------------------------------------------------------------+
| 11 | Tangible assets |
+----+-----------------------------------------------------------------------------------------------+
| | Group | Land | Property, plant & equipment | Total |
+----+----------------------------+--------------+----------------------------------+----------------+
| | | GBP 000's | GBP 000's | GBP 000's |
+----+----------------------------+--------------+----------------------------------+----------------+
| | Cost | | | |
+----+----------------------------+--------------+----------------------------------+----------------+
| | As at 1 January 2009 | 7,511 | 239 | 7,750 |
+----+----------------------------+--------------+----------------------------------+----------------+
| | Disposals | - | (166) | (166) |
+----+----------------------------+--------------+----------------------------------+----------------+
| | WU disposals | - | (25) | (25) |
+----+----------------------------+--------------+----------------------------------+----------------+
| | Transfers & disposals | (7,301) | (48) | (7,349) |
+----+----------------------------+--------------+----------------------------------+----------------+
| | As at 31 December 2009 | 210 | - | 210 |
+----+----------------------------+--------------+----------------------------------+----------------+
| | | | | |
+----+----------------------------+--------------+----------------------------------+----------------+
| | Depreciation and | | | |
| | Impairment | | | |
+----+----------------------------+--------------+----------------------------------+----------------+
| | As at 1 January 2009 | 7,352 | 93 | 7,445 |
+----+----------------------------+--------------+----------------------------------+----------------+
| | Depreciation charge for | - | 38 | 38 |
| | the year | | | |
+----+----------------------------+--------------+----------------------------------+----------------+
| | Impairment charge for the | 69 | - | 69 |
| | year | | | |
+----+----------------------------+--------------+----------------------------------+----------------+
| | Disposals | - | (54) | (54) |
+----+----------------------------+--------------+----------------------------------+----------------+
| | WU disposals | - | (25) | (25) |
+----+----------------------------+--------------+----------------------------------+----------------+
| | Transfers & disposals | (7,301) | (48) | (7,349) |
+----+----------------------------+--------------+----------------------------------+----------------+
| | Foreign exchange | (51) | (4) | (55) |
| | adjustment | | | |
+----+----------------------------+--------------+----------------------------------+----------------+
| | As at 31 December 2009 | 69 | - | 69 |
+----+----------------------------+--------------+----------------------------------+----------------+
| | | | | |
+----+----------------------------+--------------+----------------------------------+----------------+
| | Net Book Value | | | |
+----+----------------------------+--------------+----------------------------------+----------------+
| | As at 31 December 2008 | 159 | 146 | 305 |
+----+----------------------------+--------------+----------------------------------+----------------+
| | | | | |
+----+----------------------------+--------------+----------------------------------+----------------+
| | As at 31 December 2009 | 141 | - | 141 |
+----+----------------------------+--------------+----------------------------------+----------------+
| | | | |
+----+--------------------------------------+-----------+--------------------------------------------+
| | Impairment Review | | |
+----+--------------------------------------+-----------+--------------------------------------------+
| | At 31 December 2009, the Directors have carried out an impairment review and have |
| | subsequently written down the value of the Land in relation to South Africa by GBP0.069 |
| | million. The Directors are of the opinion the carrying value of the Land in relation to South |
| | Africa is now stated at a fair value. |
+----+-----------------------------------------------------------------------------------------------+
| | | | | | | | | | |
+----+----------------------------+-+-------+----+------+-----+----------+----------+----------------+
+--+--------------------+----------------+------------+------------+
| Notes to the Financial Statements |
| for the year ended 31 December 2009, continued |
+------------------------------------------------------------------+
| 12| Impairment Reviews |
+--+---------------------------------------------------------------+
| | The Board of Directors undertook an impairment review of the |
| | Group's assets as at 31 December 2009, and in view of |
| | subsequent events to the Balance Sheet date. The format of |
| | the review was to assess the carrying value of assets as at |
| | 31 December 2009 by country or sector of origin. The |
| | resultant impairment charges and rationales are as follows; |
+--+---------------------------------------------------------------+
| | | | | |
+--+--------------------+----------------+------------+------------+
| | South Africa | Net costs | Impairment | Net costs |
| | | capitalised to | charge | carried |
| | | 31 December | | forward |
| | | 2009 before | | |
| | | impairment | | |
| | | charge | | |
+--+--------------------+----------------+------------+------------+
| | | GBP 000's | GBP 000's | GBP 000's |
+--+--------------------+----------------+------------+------------+
| | Intangible assets | 100 | (100) | - |
+--+--------------------+----------------+------------+------------+
| | Tangible assets | 210 | (69) | 141 |
| | (land) | | | |
+--+--------------------+----------------+------------+------------+
| | Total costs | 310 | (169) | 141 |
+--+--------------------+----------------+------------+------------+
| | |
+--+---------------------------------------------------------------+
| | A further review of the residual carrying value in relation |
| | to South Africa was carried out. It was decided that the |
| | project was unviable and the deferred exploration expenditure |
| | has been written down to GBPnil. |
+--+---------------------------------------------------------------+
| | |
+--+---------------------------------------------------------------+
| | Southern Sudan | Net costs | Impairment | Net costs |
| | | capitalised to | charge | carried |
| | | 31 December | | forward |
| | | 2009 | | |
| | | before | | |
| | | impairment | | |
| | | charge | | |
+--+--------------------+----------------+------------+------------+
| | | GBP 000's | GBP 000's | GBP 000's |
+--+--------------------+----------------+------------+------------+
| | Intangible assets | 199 | (199) | - |
+--+--------------------+----------------+------------+------------+
| | Total costs | 199 | (199) | - |
+--+--------------------+----------------+------------+------------+
| | | | | |
+--+--------------------+----------------+------------+------------+
| | The value of the Southern Sudan exploration assets has been |
| | impaired in line with the capitalisation criteria under IFRS6 |
| | and IAS38 to GBPnil. |
+--+---------------------------------------------------------------+
| | | | | |
+--+--------------------+----------------+------------+------------+
| | | Net costs | Impairment | Net costs |
| | | capitalised to | charge | carried |
| | | 31 December | | forward |
| | | 2009 | | |
| | | before | | |
| | | impairment | | |
| | | charge | | |
+--+--------------------+----------------+------------+------------+
| | | GBP 000's | GBP 000's | GBP 000's |
+--+--------------------+----------------+------------+------------+
| | Group Totals | 509 | (368) | 141 |
+--+--------------------+----------------+------------+------------+
| | | | | |
+--+--------------------+----------------+------------+------------+
| | Intangible assets | 299 | (299) | - |
| | (Note 10) | | | |
+--+--------------------+----------------+------------+------------+
| | Tangible assets | 210 | (69) | 141 |
| | (Note 11) | | | |
+--+--------------------+----------------+------------+------------+
| | |
+--+---------------------------------------------------------------+
| | Further to the impairment review carried out on 31 December |
| | 2008, the Directors have reviewed the carrying value of the |
| | intangible assets relating to South Africa and Southern |
| | Sudan. The Southern Sudan deferred exploration expenditure |
| | has been written down to GBPnil in light of the latest |
| | geological interpretation and assessment of the security / |
| | country risks |
| | A further review of the residual carrying value in relation |
| | to South Africa was carried out. It was decided that the |
| | project was unviable and the deferred exploration expenditure |
| | has been written down to GBPnil. |
+--+--------------------+----------------+------------+------------+
+----+----------------------------+----------+---------+------------+----+------------------+
| Notes to the Financial Statements |
| for the year ended 31 December 2009, continued |
+-------------------------------------------------------------------------------------------+
| 13 | Investment in subsidiaries | |
+----+-------------------------------------------------------------------+------------------+
| | |
+----+--------------------------------------------------------------------------------------+
| | Shares in Group undertakings | |
+----+-------------------------------------------------------------------+------------------+
| | Company | | GBP 000's |
+----+---------------------------------------+---------------------------+------------------+
| | Cost | | |
+----+---------------------------------------+---------------------------+------------------+
| | At 1 January 2009 and 31 December | | 3 |
| | 2009 | | |
+----+---------------------------------------+---------------------------+------------------+
| | | | |
+----+---------------------------------------+---------------------------+------------------+
| | The parent company of the Group holds more than 20% of the share capital of the |
| | following companies: |
+----+--------------------------------------------------------------------------------------+
| | Company | Country of |Proportion | Nature of business |
| | | Registration | held | |
+----+----------------------------+--------------------+------------+-----------------------+
| | Direct | | | |
+----+----------------------------+--------------------+------------+-----------------------+
| | Brinkley Mining Ltd | Cyprus | 100% | Holding Company |
+----+----------------------------+--------------------+------------+-----------------------+
| | Brinkley Mining Holdings | Cyprus | 100% | Holding Company |
| | Ltd | | | |
+----+----------------------------+--------------------+------------+-----------------------+
| | | | | |
+----+----------------------------+--------------------+------------+-----------------------+
| | Indirect | | | |
+----+----------------------------+--------------------+------------+-----------------------+
| | Via Brinkley Mining Ltd | | | |
+----+----------------------------+--------------------+------------+-----------------------+
| | Western Uranium (Pty) Ltd | South Africa | 49% | Mineral Exploration |
+----+----------------------------+--------------------+------------+-----------------------+
| | | | | |
+----+----------------------------+--------------------+------------+-----------------------+
| | Via Brinkley Mining | | | |
| | Holdings Ltd | | | |
+----+----------------------------+--------------------+------------+-----------------------+
| | Brinkley Mining Project 4 | Cyprus | 100% | Mineral Exploration |
| | Ltd | | | |
+----+----------------------------+--------------------+------------+-----------------------+
| | Jerivion Trading Ltd | Cyprus | 100% | Shell Company |
+----+----------------------------+--------------------+------------+-----------------------+
| | Brinkley Mining South | South Africa | 100% | Land Holding |
| | Africa Project 1 (Pty) Ltd | | | |
+----+----------------------------+--------------------+------------+-----------------------+
| | | | | |
+----+----------------------------+--------------------+------------+-----------------------+
| | Via Brinkley Mining | | | |
| | Project 4 Ltd | | | |
+----+----------------------------+--------------------+------------+-----------------------+
| | Brinkley Mining Project 4 | Southern Sudan | 100% | Mineral Exploration |
| | Southern Sudan Ltd | | | |
+----+----------------------------+--------------------+------------+-----------------------+
| | | | | |
+----+----------------------------+--------------------+------------+-----------------------+
| | Via Jerivion Trading Ltd | | | |
+----+----------------------------+--------------------+------------+-----------------------+
| | Azawak Uranium Ltd (*) | Niger | 100% | Shell Company |
+----+----------------------------+--------------------+------------+-----------------------+
| | (*) Put into liquidation after year end. |
+----+--------------------------------------------------------------------------------------+
| | |
+----+--------------------------------------------------------------------------------------+
| | On 15 October 2009, the directors of Western Uranium (Pty) Ltd (WU) nominated by |
| | the parent company resigned as directors of WU. As a result of these |
| | resignations, the Group no longer was deemed to have control of WU, and as at |
| | this date the Group ceased to consolidate the financial statements of WU. The |
| | Group still retains its 49% interest in WU, and no part of the original |
| | investment has been disposed of, the only change in circumstances is the deemed |
| | effective change of control in WU. |
| | WU is currently treated as an unlisted investment with no carrying value. |
+----+--------------------------------------------------------------------------------------+
| | | | | | | |
+----+----------------------------+----------+---------+------------+----+------------------+
+----+--------------------------+--------+----------+---+------+-+------+--+--+---------------+
| Notes to the Financial Statements |
| for the year ended 31 December 2009, continued |
+---------------------------------------------------------------------------------------------+
| 14 | Available for sale investments | 2009 | 2008 |
+----+--------------------------------------------------+---------------+---------------------+
| | Group & Company - Listed Investments | GBP 000's | GBP 000's |
+----+--------------------------------------------------+---------------+---------------------+
| | | | |
+----+--------------------------------------------------+---------------+---------------------+
| | At beginning of the period | - | - |
+----+--------------------------------------------------+---------------+---------------------+
| | Acquired during the year | 3,064 | - |
+----+--------------------------------------------------+---------------+---------------------+
| | Movement in market value | 300 | - |
+----+--------------------------------------------------+---------------+---------------------+
| | At 31 December 2009 | 3,364 | - |
+----+--------------------------------------------------+---------------+---------------------+
| | | | |
+----+--------------------------------------------------+---------------+---------------------+
| | The available for sale investments, are split as | | |
| | below: | | |
+----+--------------------------------------------------+---------------+---------------------+
| | Non-current assets | 3,364 | - |
+----+--------------------------------------------------+---------------+---------------------+
| | | | |
+----+--------------------------------------------------+---------------+---------------------+
| | Available for sale investments comprises investments in listed securities, which are |
| | traded on ASX in Australia, and, which are held by the Group as a mix of strategic and |
| | short term investments. No unlisted available for sale investments are held. The |
| | market value of the above listed investments as at 9 February 2010 was GBP2,867,980. |
+----+----------------------------------------------------------------------------------------+
| | | | | | |
+----+--------------------------+--------+---------------------+-----------+------------------+
| 15 | Trade and other | 2009 | 2008 |
| | receivables | | |
+----+--------------------------+------------------------------+------------------------------+
| | | Group | Company | Group | Company |
| | | GBP 000's | GBP 000's | GBP 000's | GBP 000's |
+----+--------------------------+-------------------+------------+------------+---------------+
| | Current trade and other | | | | |
| | receivables | | | | |
+----+--------------------------+-------------------+------------+------------+---------------+
| | VAT receivable | - | - | 36 | 9 |
+----+--------------------------+-------------------+------------+------------+---------------+
| | Prepayments | 15 | 15 | 33 | 33 |
+----+--------------------------+-------------------+------------+------------+---------------+
| | Other debtors | 32 | 32 | 69 | 37 |
+----+--------------------------+-------------------+------------+------------+---------------+
| | Total | 47 | 47 | 138 | 79 |
+----+--------------------------+-------------------+------------+------------+---------------+
| | | | | | |
+----+--------------------------+-------------------+------------+------------+---------------+
| | Non Current trade and | | | | |
| | other receivables | | | | |
+----+--------------------------+-------------------+------------+------------+---------------+
| | Loans due from | - | 1,250 | - | 4,272 |
| | subsidiaries | | | | |
+----+--------------------------+-------------------+------------+------------+---------------+
| | | | | | |
+----+--------------------------+-------------------+------------+------------+---------------+
| | The loans from subsidiaries are interest free and have no fixed repayment date. |
+----+----------------------------------------------------------------------------------------+
| | | | | | |
+----+--------------------------+-------------------+------------+------------+---------------+
| 16 | Trade and other payables | 2009 | 2008 |
+----+--------------------------+--------------------------------+----------------------------+
| | | Group | Company | Group | Company |
+----+--------------------------+-------------------+------------+------------+---------------+
| | | GBP 000's | GBP 000's | GBP 000's | GBP 000'sEUR |
+----+--------------------------+-------------------+------------+------------+---------------+
| | Current trade and other | | | | |
| | payables: | | | | |
+----+--------------------------+-------------------+------------+------------+---------------+
| | Accruals | 1 | 1 | 83 | 69 |
+----+--------------------------+-------------------+------------+------------+---------------+
| | Trade payables | 32 | 22 | 93 | - |
+----+--------------------------+-------------------+------------+------------+---------------+
| | Totals | 33 | 23 | 176 | 69 |
+----+--------------------------+-------------------+------------+------------+---------------+
| | | | | | | | | | | |
+----+--------------------------+--------+----------+---+------+-+------+--+--+---------------+
+----+-----------+-------------+----------+-+----+---+----------+----+--+-----+--------------+
| Notes to the Financial Statements |
| for the year ended 31 December 2009, continued |
+--------------------------------------------------------------------------------------------+
| 17 | Share capital |
+----+---------------------------------------------------------------------------------------+
| | Authorised | | | GBP 000's | |
+----+--------------------------------------+--------+----------+-------------+--------------+
| | 1,500,000,000 Ordinary shares of 0.15p each | 2,250 | |
+----+----------------------------------------------------------+-------------+--------------+
| | | | |
+----+----------------------------------------------------------+-------------+--------------+
| | Called up, allotted, issued and fully paid | Number of | Nominal |
| | | shares | value |
| | | | GBP 000's |
+----+----------------------------------------------------------+-------------+--------------+
| | As at 1 January 2009 and at 31 December 2009 | 356,336,248 | 535 |
+----+----------------------------------------------------------+-------------+--------------+
| | No shares have been issued in the current or prior | | |
| | years. | | |
+----+----------------------------------------------------------+-------------+--------------+
| | | | |
+----+----------------------------------------------------------+-------------+--------------+
| | Total share options in issue |
| | During the year, nil options were issued (14,800,000 in prior year). |
| | As at 31 December 2009 the options in issue were; |
+----+---------------------------------------------------------------------------------------+
| | | | |
+----------------+-------------------------------+-------------------+-----------------------+
| Exercise | Expiry Date | Options in Issue | Options in Issue |
| Price | | 31 December 2009 | 31 December 2008 |
+----------------+-------------------------------+-------------------+-----------------------+
| 50p | 5 June 2011 | 10,000,000 | 20,000,000 |
+----------------+-------------------------------+-------------------+-----------------------+
| 50p | 27 June 2011 | - | 6,000,000 |
+----------------+-------------------------------+-------------------+-----------------------+
| 50p | 13 September 2011 | - | 4,000,000 |
+----------------+-------------------------------+-------------------+-----------------------+
| 25p | 26 January 2012 | 1,000,000 | 1,000,000 |
+----------------+-------------------------------+-------------------+-----------------------+
| 25p | 5 April 2012 | - | 8,100,000 |
+----------------+-------------------------------+-------------------+-----------------------+
| 13p | 3 April 2013 | - | 2,500,000 |
+----------------+-------------------------------+-------------------+-----------------------+
| 13p | 20 May 2013 | - | 500,000 |
+----------------+-------------------------------+-------------------+-----------------------+
| 13p | 5 August 2013 | - | 500,000 |
+----------------+-------------------------------+-------------------+-----------------------+
| 13p | 16 July 2013 | - | 200,000 |
+----------------+-------------------------------+-------------------+-----------------------+
| 10p | 3 April 2013 | - | 2,500,000 |
+----------------+-------------------------------+-------------------+-----------------------+
| 10p | 20 May 2013 | - | 500,000 |
+----------------+-------------------------------+-------------------+-----------------------+
| 10p | 5 August 2013 | - | 500,000 |
+----------------+-------------------------------+-------------------+-----------------------+
| 10p | 16 July 2013 | - | 200,000 |
+----------------+-------------------------------+-------------------+-----------------------+
| 7p | 3 April 2013 | - | 2,500,000 |
+----------------+-------------------------------+-------------------+-----------------------+
| 7p | 20 May 2013 | - | 500,000 |
+----------------+-------------------------------+-------------------+-----------------------+
| 7p | 5 August 2013 | - | 500,000 |
+----------------+-------------------------------+-------------------+-----------------------+
| 7p | 16 July 2013 | - | 200,000 |
+----------------+-------------------------------+-------------------+-----------------------+
| 5p | 3 April 2013 | - | 2,500,000 |
+----------------+-------------------------------+-------------------+-----------------------+
| 5p | 20 May 2013 | - | 500,000 |
+----------------+-------------------------------+-------------------+-----------------------+
| 5p | 5 August 2013 | - | 500,000 |
+----------------+-------------------------------+-------------------+-----------------------+
| 5p | 16 July 2013 | - | 200,000 |
+----------------+-------------------------------+-------------------+-----------------------+
| | | 11,000,000 | 53,900,000 |
+----------------+-------------------------------+-------------------+-----------------------+
| | |
+----+---------------------------------------------------------------------------------------+
| | 42,900,000 options were cancelled during the year (2008: nil). No options were |
| | exercised during the year and nil options lapsed (2008: 2,850,000). |
| | Total warrants in issue |
| | No warrants were issued during the year (2008: nil). The outstanding number of |
| | warrants at the end of the period was 1,523,756 (2008: 1,523,756). The exercise |
| | price is 0.50p and the expiry date is 5 June 2011. No warrants lapsed, were |
| | cancelled or exercised during the year. |
+----+---------------------------------------------------------------------------------------+
| Notes to the Financial Statements |
| for the year ended 31 December 2009, continued |
+--------------------------------------------------------------------------------------------+
| 18 | Share based payments |
+----+---------------------------------------------------------------------------------------+
| | Share options |
+ +---------------------------------------------------------------------------------------+
| | During the year, the Company issued GBPnil share based options to |
| | Directors and employees. |
| | Options were previously granted under the plan for no consideration. |
| | Options were granted for a five year period. There were no vesting |
| | conditions associated with the Directors' options. Employees' options |
| | vested after 1 year of continuous employment. Options granted under the |
| | plan carry no dividend or voting rights. |
| | Under IFRS 2 'Share Based Payments', the Company determines the fair |
| | value of options issued to Directors and Employees as remuneration and |
| | recognises the amount as an expense in the income statement with a |
| | corresponding increase in equity. |
| | The fair value of the options vested during the period was GBPnil (2008: |
| | GBP0.204 million). The assessed fair value at grant date is determined |
| | using the Black-Scholes Model that takes into account the exercise price, |
| | the term of the option, the share price at grant date, the expected price |
| | volatility of the underlying share, the expected dividend yield and the |
| | risk-free interest rate for the term of the option. |
| | As detailed in Note 17, the company cancelled 42.9 million options which |
| | had previously been issued to Directors and employees. The financial |
| | effect of these cancellations is the reversal of the previous charge to |
| | the income statement, and during the current year the Group and Company |
| | has incurred a credit to the income statement of GBP2.428 million (2008: |
| | net GBP0.127 million), based on the previous share based payment charges |
| | charged in prior years. |
+----+---------------------------------------------------------------------------------------+
| 19 | Analysis of changes in net funds | |
+----+------------------------------------+--------------------------------------------------+
| | | 2009 | 2008 |
+----+------------------------------------+---------------------+----------------------------+
| | | Group | Company | Group | Company |
| | | GBP 000's | GBP | GBP 000's | GBP 000's |
| | | | 000's | | |
+----+-------------------------+---------------------+----------+-------------+--------------+
| | Balance at beginning of | 7,322 | 7,304 | 11,126 | 11,017 |
| | period | | | | |
+----+-------------------------+---------------------+----------+-------------+--------------+
| | Change during the | (4,242) | (4,226) | (3,804) | (3,713) |
| | period | | | | |
+----+-------------------------+---------------------+----------+-------------+--------------+
| | Balance at the end of | 3,080 | 3,078 | 7,322 | 7,304 |
| | the period | | | | |
+----+-------------------------+---------------------+----------+-------------+--------------+
| | |
+----+---------------------------------------------------------------------------------------+
| 20 | Financial instruments |
+----+---------------------------------------------------------------------------------------+
| | The Group uses financial instruments comprising cash, liquid resources and |
| | debtors/creditors that arise from its operations. The Group holds cash as a liquid |
| | resource to fund the obligations of the Group. The Group's cash balances are held in |
| | Sterling, US Dollars, and in South African Rands. The Group's strategy for managing |
| | cash is to maximise interest income whilst ensuring its availability to match the |
| | profile of the Group's expenditure. This is achieved by a regular monitoring of |
| | interest rates and a monthly review of expenditure forecasts. |
| | The Company has a policy of not hedging and therefore takes market rates in respect |
| | of foreign exchange risk, however it does review its currency exposures on an ad hoc |
| | basis. Currency exposures relating to monetary assets held by foreign operations are |
| | included within the foreign exchange reserve in the Group Balance Sheet. |
| | The Group considers the credit ratings of banks in which it holds funds in order to |
| | reduce exposure to credit risk. |
| | To date the Group has relied upon equity funding to finance operations. The |
| | Directors are confident that adequate cash resources exist to finance operations to |
| | commercial exploitation but controls over expenditure are carefully managed. |
| | The net fair value of financial assets and liabilities approximates the carrying |
| | values disclosed in the financial statements. The currency profile of the financial |
| | assets is as follows: |
+----+---------------------------------------------------------------------------------------+
| | Cash and short term deposits | 2009 | 2008 |
+----+-----------------------------------------------+------------------+--------------------+
| | | GBP 000's | GBP 000's |
+----+-----------------------------------------------+------------------+--------------------+
| | Sterling | 2,696 | 6,745 |
+----+-----------------------------------------------+------------------+--------------------+
| | USD | 383 | 559 |
+----+-----------------------------------------------+------------------+--------------------+
| | South African Rand | 1 | 18 |
+----+-----------------------------------------------+------------------+--------------------+
| | At 31 December 2009 | 3,080 | 7,322 |
+----+-----------------------------------------------+------------------+--------------------+
| | The financial assets comprise cash balances in interest earning bank accounts at |
| | call and a deposit at a 48 hours access account with the RBS managed Global Treasury |
| | Funds. |
+----+---------------------------------------------------------------------------------------+
| | | | | | | | | | | | |
+----+-----------+-------------+----------+-+----+---+----------+----+--+-----+--------------+
+----+-------------------------------------+--------------------------------------+-+--------------+---+--------------+----------+
| Notes to the Financial Statements |
| for the year ended 31 December 2009, continued |
+--------------------------------------------------------------------------------------------------------------------------------+
| 21 | Material non-cash transactions |
+----+---------------------------------------------------------------------------------------------------------------------------+
| | There were no material non-cash transactions for the period. |
+----+---------------------------------------------------------------------------------------------------------------------------+
| | |
+----+---------------------------------------------------------------------------------------------------------------------------+
| 22 | Commitments |
+----+---------------------------------------------------------------------------------------------------------------------------+
| | The Company is not intending to undertake any further exploration and believes that it has no |
| | further commitments to do so pending sale of the projects. |
+----+---------------------------------------------------------------------------------------------------------------------------+
| | |
+----+---------------------------------------------------------------------------------------------------------------------------+
| 23 | Related party transactions |
+----+---------------------------------------------------------------------------------------------------------------------------+
| | Transactions between the company and its subsidiaries, which are related parties, have been |
| | eliminated on consolidation and are not disclosed in this note. Transactions between other |
| | related parties are discussed below. |
| | During the period, the Company paid consultancy fees of GBP76,500 (2008: GBP38,250) to Terra |
| | Africa Investments, a Company related to Richard Linnell, a Director of Brinkley Mining Plc. |
| | During the period, the Company paid consultancy fees of GBP18,668 (2008: GBP68,951) to Dales |
| | Project Management, a Company related to Dunbar Dales, a Director of Brinkley Mining Plc. |
| | Remuneration of Key Management Personnel |
| | The remuneration of the Directors and other key management personnel of the Group is set out |
| | below in aggregate for each of the categories specified in IAS24 Related party Disclosures. |
+----+---------------------------------------------------------------------------------------------------------------------------+
| | | | |
+----+------------------------------------------------------------------------------+--------------+-----------------------------+
| | | 2009 | 2008 |
+----+------------------------------------------------------------------------------+--------------+-----------------------------+
| | | GBP 000's | GBP 000's |
+----+------------------------------------------------------------------------------+--------------+-----------------------------+
| | Short-term employee benefits | 607 | 1,025 |
+----+------------------------------------------------------------------------------+--------------+-----------------------------+
| | Share-based payments | - | 204 |
+----+------------------------------------------------------------------------------+--------------+-----------------------------+
| | | 607 | 1,229 |
+----+------------------------------------------------------------------------------+--------------+-----------------------------+
| | |
+----+---------------------------------------------------------------------------------------------------------------------------+
| 24 | Post balance sheet events |
+----+---------------------------------------------------------------------------------------------------------------------------+
| | The Company purchased a further 4.5 per cent investment in Dragon Mining Limited for |
| | approximately GBP2 million on 27 January 2010. Following this further investment, the Company |
| | now owns approximately 12.68 per cent of Dragon Mining Ltd. |
+----+---------------------------------------------------------------------------------------------------------------------------+
| | |
+----+---------------------------------------------------------------------------------------------------------------------------+
| 25 | Profit and loss account of the parent company |
+----+---------------------------------------------------------------------------------------------------------------------------+
| | As permitted by section 408 of the Companies Act 2006, the profit and loss account of the |
| | parent company has not been separately presented in these accounts. The parent company loss |
| | for the year was GBP1.74 million (2008: GBP16.22 million). |
| | |
+----+---------------------------------------------------------------------------------------------------------------------------+
| 26 | Board Changes |
+----+---------------------------------------------------------------------------------------------------------------------------+
| | Grant Thomas Paterson (aged 35) has held the following directorships in companies or partnerships in the past five years: |
| | |
| | Current Former |
| | Hardy Bowen Pel Iron Ore Pty Ltd |
| | |
+----+---------------------------------------------------------------------------------------------------------------------------+
| 27 | Other | | | |
+------------------------------------------+--------------------------------------+--------------------+--------------+----------+
| | The financial information in this announcement has been derived from the | |
| | Company's statutory accounts for the year ended 31 December 2009, which | |
| | were approved by the Directors on 19 April 2010 and on which the | |
| | auditors have given an unqualified opinion. The financial information | |
| | set out in this announcement does not constitute statutory accounts. | |
| | Statutory accounts for the year ended 31 December 2009 will be delivered | |
| | to the Registrar of Companies in accordance with the Companies Act. The | |
| | financial information for the year ended 31 December 2008 is derived | |
| | from the Company's statutory accounts, which have been delivered to the | |
| | Registrar of Companies and on which the auditors gave an unqualified | |
| | opinion. | |
+------------------------------------------+--------------------------------------------------------------------------+----------+
| | | | | | | | |
+----+-------------------------------------+--------------------------------------+-+--------------+---+--------------+----------+
ENDS
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR KKCDKKBKDCQD
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