Full Year Results -6-
March 01 2011 - 11:40AM
UK Regulatory
24 March 2010 Shares issued at 92 cents (AUD1.00) 75,000 69
Shares issued at 35 pence in public
1 April 2010 offering 96,000,000 50,908
Shares issued at 1 pence to Employee
23 December 2010 Benefit Trust 10,000,000 154
-------------------- ----------
31 December 2010 Unaudited closing balance 537,124,485 107,498
-------------------- ----------
Ordinary shares have no par value, carry one vote per share and carry
the right to dividends. All shares have been fully paid.
c. Reconciliation of net cash inflow from financing activities
The above figures are reconciled to the statement of cash flows as
follows:
$'000
Increase in ordinary share capital
per above 56,349
Share based payment expense (see note
19a) (5,063)
-------
Proceeds from issue of shares 51,286
-------
Increase in share issue cost per
above (6,572)
Share based payment expense (see note
19c) 1,057
-------
Payments for share issue costs (5,515)
-------
d. Capital risk management
The Group's and the parent entity's objectives when managing capital are to safeguard their ability
to continue as a going concern, so that they can continue to provide returns for shareholders and
benefits for other stakeholders and to maintain an optimal capital structure to reduce the cost of
capital.
In order to maintain or adjust the capital structure, the Group may
adjust the amount of dividends paid to shareholders, return capital
to shareholders, issue new shares or sell assets to reduce debt.
* - See note 1(c) and 5(b)(i)
5. Reserves
Unaudited 31 December
31 December 2009 1 January 2009
2010 Restated* Restated*
$'000 $'000 $'000
a. Reserves 1,065 (3,166) (9,515)
----------------------- ------------------------- ---------------
Foreign
Cumulative currency Share-based
translation translation payment
adjustment reserve reserve Total
$'000 $'000 $'000 $'000
Balance at 1 January 2009 (restated*) (9,515) - - (9,515)
Restatement of reserves as a
result of change in presentation
currency (restated*) 6,339 - - 6,339
Currency translation differences
arising during the year (restated*) - 10 - 10
---------------- ------------------- -------------- ---------
Balance at 31 December 2009
(restated*) (3,176) 10 - (3,166)
---------------- ------------------- -------------- ---------
Balance at 1 January 2010 (restated*) (3,176) 10 - (3,166)
Share-based payment transactions - - 3,958 3,958
Currency translation differences
arising during the year - 273 - 273
---------------- ------------------- -------------- ---------
Unaudited balance at 31 December
2010 (3,176) 283 3,958 1,065
---------------- ------------------- -------------- ---------
* - See note 1(c) and 5(b)(i)
5. Reserves (continued)
b. Nature and purpose of reserves
(i) Cumulative Translation adjustment
The Cumulative Translation adjustment arises on the translation of
assets and liabilities previously stated in Australian dollar to US
dollar as a result of the change in functional currency and presentation
currency. Assets and liabilities were translated from the previous
presentation currency (Australian dollar) to the US dollar at the beginning
of the comparative period using the opening exchange rate and retranslated
at the closing rate. Statement of Comprehensive Income items were translated
at the average rate for the respective periods. Stated capital was
translated at the historic exchange rates ruling on the date of the
share issue. All resulting differences are reported in the Cumulative
Translation adjustment.
The rates used to translate line items into US dollar are as follows:
Currency 2009 2008
Average rate
(1 January to
31 December) AUD to US$1 0.7924 0.8530
Closing rate
(31
December) AUD to US$1 0.8931 0.6907
(ii) Foreign currency translation reserve
Exchange differences arising on translation of foreign controlled entities
are taken to the foreign currency translation reserve. The reserve
is recognised in the Statement of Comprehensive Income when the net
investment is disposed.
Currency 2010
Average rate (1 January
to 31 December) AUD to US$1 0.9199
Closing rate (31
December) AUD to US$1 1.0163
(iii) Share based payments reserve
The share-based payments reserve is used to recognise:
-- The grant date fair value of options issued to employees but not
exercised
-- The grant date fair value of warrants issued
The reserve comprises the credit to equity for equity-settled share-based
payment arrangements under IFRS 2 - Share based payment. The standard requires
that the expense be charged to the profit and loss component of the statement
of comprehensive income, while a credit needs to be raised against equity over
the vesting period. When options are exercised, the reserve related to the
specific options is transferred to share capital. If the options lapse after
vesting, the related reserve is reversed through the profit and loss component
of the statement of comprehensive income.
6. Contingent permit option
During October 2010 the Company entered into an Option and Sale agreement
with Compagnie Miniere de L'Ouest Africain SA ("CMOA") whereby the
Company acquired the right to carry out investigations with respect
to Tenements owned by CMOA in Mali. On conclusion of the investigations
the Company has the option to acquire 70% of the mining assets in CMOA
for $4.5 million. As this payment is contingent on the successful outcome
of the geological study, no liability has been raised in the balance
sheet.
7. Share-based payment transactions
Unaudited
2010 2009
$'000 $'000
a. Deferred consideration 5,063 -
On 5 March 2010 the Company waived the condition that the deferred
consideration payment to Mr Nikolajs Zuks of A$14,300,000 ("the Deferred
Consideration Payment") payable when it raised new investment of a
minimum of A$ 144,000,000 and as a set off against this right the Company
issued to Mr Zuks 9,604,483 ordinary shares at a price of GBP0.90 per
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