TIDMGGG
GGG Resources plc
(the "Company" or "GGG")
31 March 2011
Results for Year Ended 31 December 2010
Notice of Annual General Meeting
Western-Australian mining exploration and development company GGG Resources plc
(AIM: GGG) today announces its audited results for the year ended 31 December
2010.
Operational and Financial Highlights:
* Purchased 50% of Bullabulling Project for A$1.9 million and A$600,000
replacement bond.
* Completed initial Bullabulling JORC resource update of 41.5 Mt @ 1.5 g/t Au
(approximately 2 million ounces), an upgrade of 450%.
* Started resource definition drilling and feasibility study at Bullabulling.
* Raised over GBP1.1 million from two resource specialist funds and Directors
in July 2010, and raised GBP7.5 million from UK institutions in November
2010.
* Appointed Michael Short to the Board of Directors.
* Changed the Company name to GGG Resources plc and underwent a 1:2 Share
Capital consolidation
* Repatriated a total of US$4.2 million from China from the proceeds of the
Nimu sale, with the balance expected in 2011.
* Group cash balances as at 31 December 2010 were GBP10,784,896.
* Commenced work on ASX dual listing
After Year End Events:
* On 14 March 2011 the Company announced its intention to make an off-market
scrip offer for the entire issued share in Auzex Resources Limited that it
does not own. The Offer is for seven GGG Shares for every five Auzex shares
held, valuing Auzex at approximately A$ 94.9 million - a 39.3% premium to
the Auzex's closing share price on 11 March 2011. If the takeover is
successful it will consolidate the ownership of the Bullabulling Gold
Project into a single merged entity. The Company is applying for listing on
the Australian Stock Exchange which, if successful, will give the Company
dual-listed status and access to capital markets in the United Kingdom and
Australia.
* On 16 March 2011 the Company announced the appointment of David McArthur as
its Finance Director and the opening of the Perth office. David will be
part of the growing Perth-based team to advance the Bullabulling Gold
Project.
* On 24 March 2011, announced a new technical committee formed to oversee the
building of the new Bullabulling mine, and the appointment of consultant
mining engineers John Barton and Mark Pit.
The annual report and financial statements together with the Notice of AGM and
Proxy form will be despatched to shareholders shortly. The Annual General
Meeting will be held at the Andaz Hotel, 40 Liverpool Street, London, EC2M 7QN
on Thursday 28 April at 11:00am.
Additional copies of the Annual Report and Accounts, Notice of AGM and Proxy
Form may be requested directly from the Company and will be available following
distribution to shareholders on the Company's website www.gggresources.com.
Dr. Peter Ruxton, Chairman of GGG Resources plc, commented:
"This has been a very encouraging year characterised by strong progress both
geologically and corporately. As we look forward into 2011, we are a fully
funded company with Bullabulling set to grow beyond 2 million ounces and
feasibility in progress. I look forward to updating all shareholders with
progress throughout the year."
Enquiries,please contact:
Dr. Jeffrey Malaihollo Westhouse Securities Limited (UK Nominated Adviser)
MD, GGG Resources plc (UK) Tom Price / Martin Davison
Tel: + 44 1992 531820 Tel: + 44 20 7601 6100
Email: www.gggresources.com
Neil Boom Collins Stewart Europe Limited (Broker)
MD, Gresham PR Ltd (UK). John Prior / Adam Miller
Tel: + 44 7866 805 108 Tel: + 44 20 7523 8350
David McArthur David Brooks
GGG Resources plc (Australia) Professional Public Relations (Australia media)
41 Stirling Highway T: +61 8 9388 0944/ +61 433 112 936
Nedlands, WA 6009 E: david.brooks@ppr.com.au
Australia
Tel: +61 8 9423 3200
CHAIRMAN'S STATEMENT
Dear Shareholders
I am very pleased to be writing my second Chairman's Statement, and reviewing a
year that has seen your Company make considerable progress.
In last year's statement I outlined our objective of generating real
shareholder wealth by creating a robust exploration and mining company. To
achieve this, in February 2010 we signed an option to acquire 50% of the
Bullabulling Project in Western Australia which, following detailed due
diligence, we exercised in April.
As you are aware, the Bullabulling Project aims to re-open a former working
open pit gold mine in the Coolgardie goldfields of Western Australia. From our
work to date, we have every confidence that Bullabulling is a company-making
deposit and has the potential to be a corner stone project from which a robust
exploration and mining company can be built. When we purchased Bullabulling we
estimated that the project may grow to over 1 million ounces. I am pleased to
report that in the August JORC resource estimation, the Inferred Resource of
Bullabulling is estimated to be approximately 2 million ounces at a 0.7g/t gold
cut-off. And yet the project still has much potential to grow further along
strike, in width and at depth.
In view of the decision to accelerate the development of the Bullabulling
project, the Company chose not to exercise its option on the Cikoleang gold
property in Indonesia, given its early stage status, and the greater promise in
Western Australia.
Throughout 2010, our work on Bullabulling focused on building the understanding
of the potential of the deposit, growing its resources, moving it closer to
feasibility and establishing the building blocks to bring the deposit back into
production in 2013.
In 2010, from a technical perspective, we were able to put together an
extensive historical database of over 12,000 drill holes drilled by previous
owners of Bullabulling and reviewed the record of the past mining operation.
Using this database we produced a geological model of the deposit. In July we
drilled seven diamond drill holes the results of which clearly validated the
model. The new database was used for an initial JORC estimation resulting in an
approximately 2 million ounces Inferred Resource (41.5 Mt @ 1.5 g/t Au at 0.7 g
/t Au cut-off grade). In November we embarked on a 30,000 metres reverse
circulation resource definition drilling programme and I am pleased to report
that the results so far show that approximately 80% of the data equals or
betters the predicted result from our geological model. Feasibility work is
advancing well with metallurgical drilling, and initial assessment of water and
power availability completed. An initial estimation of optimum plant capacity,
capital costs and operational costs is on the way.
In parallel with the technical aspect, we are also building our team and our
financing capabilities. In June we appointed Michael Short to our Board of
Directors. Michael is a Civil Engineer specialising in project development, who
runs GBM Engineering and has a huge experience in project feasibility and
construction. During the year we also opened our office in Perth, Western
Australia and appointed David McArthur as our Australian Chief Financial
Officer. David has extensive corporate finance experience and was the Financial
Director of Dioro Exploration NL who operated the Frog's Leg gold mine just to
the North East of Bullabulling.
On the financial side, in July we raised just over GBP1.1 million from two
specialist mining funds and our own directors. We then appointed Collins
Stewart Europe as our UK broker in September. In October we appointed Morgan
Stanley Smith Barney as our Australian broker and embarked on a dual-listing
process on the Australian Stock Exchange. In November we further strengthened
the Company's balance sheet by raising GBP7.5 million mainly from UK
institutions. A full prospectus for the ASX listing was submitted in January
and by the end of the month we raised A$ 9 million in an over-subscribed issue
conditional upon admission to the ASX. The ASX process for listing is ongoing
and we have submitted supplementary prospectus with a view to completing the
dual listing.
As we look forward into 2011, we are a fully funded company with Bullabulling
set to grow beyond 2 million ounces and feasibility in progress. I look forward
to updating all shareholders with progress throughout the year.
In closing I would like to take this opportunity to thank my fellow Directors
and staff. But mostly I would like to thank you the Shareholders who have shown
confidence in the Company and the Board. We look forward to delivering what
your sustained support deserves.
Dr. Peter Ruxton
Chairman
CONSOLIDATED INCOME STATEMENT
Year ended 31 December 2010
Note 1 Jan to 1 Jan to
31 Dec 31 Dec
2010 2009
GBP GBP
CONTINUING OPERATIONS
Administrative expenses (778,166) (555,300)
OPERATING LOSS 3 (778,166) (555,300)
Gain (loss) on disposal of marketable securities 8,196 -
Finance income 79,118 7,361
LOSS BEFORE TAX (690,852) (547,939)
Tax 8 (10,986) -
LOSS FROM CONTINUING OPERATIONS (701,838) (547,939)
DISCONTINUED OPERATIONS
Loss from discontinued operations (net of tax) 4 - (1,171,142)
LOSS FOR THE FINANCIAL PERIOD 7 (701,838) (1,719,081)
ATTRIBUTABLE TO THE EQUITY HOLDERS OF THE PARENT (701,838) (1,719,081)
BASIC LOSS PER SHARE 9 (0.006) (0.010)
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Year ended 31 December 2010
Note 1 Jan to 1 Jan to
31 Dec 31 Dec
2010 2009
GBP GBP
OTHER COMPREHENSIVE INCOME
Foreign currency translation differences - 31,002 (751,001)
foreign operations
Change in fair value of available-for-sale 2,089,138 -
financial assets
OTHER COMPREHENSIVE INCOME FOR THE YEAR 2,120,140 (751,001)
RECOGNISED DIRECTLY IN EQUITY
Loss for the year (701,838) (1,719,081)
TOTAL COMPREHENSIVE INCOME(LOSS) FOR THE YEAR 1,418,302 (2,470,082)
ATTRIBUTABLE TO THE EQUITY HOLDERS OF THE PARENT 1,418,302 (2,470,082)
Under IAS 1 (revised) the Group has included a consolidated statement of
comprehensive income and expense for the year ended 31 December 2010 and 2009.
This revision has no impact on the balance sheet for 2010, 2009 or 2008. The
2008 balance sheet is available in the 2009 annual report, which is available
on the Company's website, www.gggresources.com, under the section headed
investors and media.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
31 December 2010
Note 2010 2009
GBP GBP
NON-CURRENT ASSETS
Intangible assets 10 2,011,385 -
Investment in available for sale asset 12 3,080,396 -
5,091,781 -
CURRENT ASSETS
Other receivables 13 467,714 2,296,578
Cash and cash equivalents 10,784,896 3,762,442
11,252,610 6,059,020
TOTAL ASSETS 16,344,391 6,059,020
EQUITY
Share capital 16 2,908,472 1,833,672
Share premium account 17 15,944,385 8,213,120
Warrant reserve 17 52,585 492,329
Share option reserve 17 345,799 267,418
Translation reserve 17 754,336 723,334
Available for sale asset reserve 17 2,089,138 -
Retained losses 17 (6,318,282) (6,195,834)
EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE 15,776,433 5,334,039
PARENT
TOTAL EQUITY 15,776,433 5,334,039
CURRENT LIABILITIES
Other payables 14 567,958 724,981
TOTAL EQUITY AND LIABILITIES 16,344,391 6,059,020
These financial statements were approved by the Board of Directors and
authorised for issue on 30 March 2011.
Signed on behalf of the Board of Directors
P McGroary
Director
Company Number:
05277251
COMPANY STATEMENT OF FINANCIAL POSITION
31 December 2010
Note 2010 2009
GBP GBP
NON-CURRENT ASSETS
Investments in subsidiaries 11 333,737 333,736
Other intangible assets 2,011,385 -
Investment in available for sale asset 12 3,080,396 -
5,425,518 333,736
CURRENT ASSETS
Other receivables 13 2,502,050 3,942,136
Cash and cash equivalents 8,194,954 497,538
10,697,004 4,439,674
TOTAL ASSETS 16,122,522 4,773,410
EQUITY
Share capital 16 2,908,472 1,833,672
Share premium account 17 15,944,385 8,213,120
Warrant reserve 17 52,585 492,329
Share option reserve 17 345,799 267,418
Available for sale asset reserve 17 2,089,138 -
Retained losses 17 (5,738,500) (6,079,880)
TOTAL EQUITY 15,601,879 4,726,659
CURRENT LIABILITIES
Other payables 14 520,643 46,751
TOTAL EQUITY AND LIABILITIES 16,122,522 4,773,410
These financial statements were approved by the Board of Directors and
authorised for issue on 30 March 2011.
Signed on behalf of the Board of Directors
P McGroary
Director
STATEMENT OF CHANGES IN EQUITY
Year ended 31 December 2010
1 Jan to 1 Jan to
31 Dec 31 Dec
2010 2009
GBP GBP
GROUP
Opening balance 5,334,039 7,578,603
Loss for financial period (701,838) (1,719,081)
New equity share capital subscribed 1,074,800 378,333
Premium on new equity share capital subscribed 7,731,265 107,200
Value attributed to warrants granted 52,585 -
Value attributed to share options granted 165,442 12,664
Available for sale asset reserve 2,089,138 -
Translation reserve 31,002 (751,001)
Minority Interest - (272,679)
Closing balance 15,776,433 5,334,039
COMPANY 1 Jan to 1 Jan to
31 Dec 31 Dec
2010 2009
GBP GBP
Opening balance 4,726,659 5,571,330
Loss for financial period (238,010) (1,342,868)
New equity share capital subscribed 1,074,800 378,333
Premium on new equity share capital subscribed 7,731,265 107,200
Value attributed to warrants granted 52,585 -
Value attributed to share options granted 165,442 12,664
Available for sale asset reserve 2,089,138 -
Closing balance 15,601,879 4,726,659
CONSOLIDATED CASH FLOW STATEMENT
Year ended 31 December 2010
1 Jan to 1 Jan to
31 Dec 31 Dec
2010 2009
GBP GBP
Loss for the period (701,838) (1,719,081)
Depreciation - 6,175
Profit on disposal of marketable securities (8,196) -
Loss on disposal of discontinued operations, net of tax - 1,171,142
Stock option expense 218,027 12,664
Tax expense 10,986 -
Finance income (79,118) (7,361)
Change in receivables and other current assets - 1,828,864 3,741,102
(Increase) / Decrease
Change in payables - Increase / (Decrease) (157,023) (3,272,456)
1,111,702 (67,815)
Effect of foreign exchange translation (525,236) (680,870)
Tax paid on disposal of discontinued operations by (10,986) (682,619)
foreign subsidiary
NET CASH USED IN OPERATING ACTIVITIES 575,480 (1,431,304)
INVESTING ACTIVITIES
Proceeds on disposal of discontinued operations - 4,726,095
Proceeds on disposal of marketable securities 8,196 -
Acquisitions of other intangible assets (2,011,385) (88,842)
Investment in available for sale asset (429,460) -
Interest received 79,118 7,361
NET CASH USED IN INVESTING ACTIVITIES (2,353,531) 4,644,614
FINANCING ACTIVITIES
Issue of equity share capital 934,350 378,333
Share premium on issue of equity share capital 7,690,650 129,167
Share issue costs (380,733) (21,966)
NET CASH FROM FINANCING ACTIVITIES 8,244,267 485,534
NET (DECREASE) / INCREASE IN CASH AND CASH EQUIVALENTS 6,466,216 3,698,844
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 3,762,442 63,598
Effect of exchange rate on cash held 556,238 -
CASH AND CASH EQUIVALENTS AT END OF PERIOD 10,784,896 3,762,442
NOTES TO THE FINANCIAL STATEMENTS
Year ended 31 December 2010
1. BASIS OF PREPARATION AND ACCOUNTING POLICIES
General information
GGG Resources plc is a Company incorporated and domiciled in England and Wales.
The address of the registered office is given on the website. The nature of the
Group's operations and its principal activities are set out in the Directors'
report.
These financial statements are presented in pounds sterling because that is the
currency of the parent Company of the Group. Foreign operations are included in
accordance with the policies set out in this note.
a. Basis of preparation
GGG Resources plc was incorporated on 3 November 2004.
These financial statements have been prepared on a going concern basis which
presumes the realisation of assets and discharge of liabilities in the normal
course of business. The Group has no operating revenues (2009 - nil). The
Group's ability to continue as a going concern is dependent on the Group's
ability to ultimately attain profitable operations.
The financial statements have been prepared in accordance with International
Financial Reporting Standards as adopted by the European Union and as applied
in accordance with the provisions of the Companies Act 2006. The principal
accounting policies adopted are set out below. These consolidated financial
statements have been prepared on the historical cost basis, except for the
following material item:
Available for sale assets are measured at fair value.
b. Basis of consolidation
The consolidated financial statements incorporate the financial statements of
the Company and entities controlled by the Company (its subsidiaries). Control
is achieved where the Company has the power to govern the financial and
operating policies of an investee entity so as to obtain benefits from its
activities.
Minority interests in the net assets of consolidated subsidiaries are
identified separately from the Group's equity therein. Minority interests
consist of the amount of those interests at the date of the original business
combination (see below) and the minority's share of changes in equity since the
date of the combination. Losses applicable to the minority in excess of the
minority's interest in the subsidiary's equity are allocated against the
interests of the Group except to the extent that the minority has a binding
obligation and is able to make an additional investment to cover the losses.
The results of subsidiaries acquired or disposed of during the year are
included in the consolidated income statement from the effective date of
acquisition or up to the effective date of disposal, as appropriate.
Where necessary, adjustments are made to the financial statements of
subsidiaries to bring the accounting policies used into line with those used by
the Group.
All intra-Group transactions, balances, income and expenses are eliminated on
consolidation.
c) Business combinations
The acquisition of subsidiaries 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 "Business Combination" are recognised
at their fair value at the acquisition date, except for non-current assets (or
disposal Groups) that are classified as held for resale in accordance with IFRS
5 "Non-Current Assets held for Sale and Discontinued Operations" which are not
recognised and measured at fair value less costs to sell.
Goodwill arising on acquisition is recognised as an asset and initially
measured at cost, being the excess of the cost of the business combination over
the Group's interest in the net fair value of the identifiable assets,
liabilities and contingent liabilities recognised. If, after reassessment, the
Group's interest in the net fair value of the acquiree's identifiable assets,
liabilities and contingent liabilities exceeds the cost of the business
combination, the excess is recognised immediately in profit or loss.
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.
d) Goodwill
Goodwill arising on consolidation represents the excess of the cost of
acquisition over the Group's interest in the fair value of the identifiable
assets and liabilities of a subsidiary, at the date of acquisition. Goodwill is
initially recognised as an asset at cost and is subsequently measured at cost
less any accumulated impairment losses. Goodwill which is recognised as an
asset is reviewed for impairment at least annually. Any impairment is
recognised immediately in profit or loss and is not subsequently reversed.
For the purpose of impairment testing, goodwill is allocated to each of the
Group's cash-generating units expected to benefit from the synergies of the
combination. Cash-generating units to which goodwill has been allocated are
tested for impairment annually, or more frequently when there is an indication
that the unit may be impaired. If the recoverable amount of the cash-generating
unit is less than the carrying amount of the unit, the impairment loss is
allocated first to reduce the carrying amount of any goodwill allocated to the
unit and then to the other assets of the unit pro-rata on the basis of the
carrying amount of each asset in the unit. An impairment loss recognised for
goodwill is not reversed in a subsequent period.
On disposal of a subsidiary, the attributable amount of goodwill is included in
the determination of the profit or loss on disposal.
e) Other intangible assets
Exploration and evaluation expenditure comprises costs which are directly
attributable to the acquisition of exploration licenses and subsequent
exploration expenditures.
Exploration and evaluation expenditure is carried forward as an asset provided
that one of the following conditions is met:
i. Such costs are expected to be recouped in full through successful
development and exploration of the area of interest or alternatively, by
its sale;
ii. Exploration and evaluation activities in the area of interest have not yet
reached a stage which permits a reasonable assessment of the existence of
economically recoverable reserves and active and significant operations in
relation to the area are continuing, or planned for the future.
Identifiable exploration and evaluation assets acquired are recognised as
assets at their cost of acquisition. An impairment review is performed when
facts and circumstances suggest that the carrying amount of the assets may
exceed their recoverable amounts. Exploration assets are reassessed on a
regular basis and these costs are carried forward provided that at least one of
the conditions outlined is met. Exploration rights are amortised over the
useful economic life of the mine to which it relates, commencing when the asset
is available for use.
Expenditure on research activities is recognised as an expense in the period in
which it is incurred.
f) Property, plant and equipment
Property, plant and equipment is stated at cost less any subsequent accumulated
depreciation and subsequent accumulated impairment losses.
Depreciation is charged so as to write off the cost, less estimated residual
value on assets other than land, over their estimated useful lives, using the
reducing balance method, on the following bases:
Fixtures and equipment 20-30%
The gain or loss arising on the disposal or retirement of an asset is
determined as the difference between the sales proceeds and the carrying amount
of the asset and is recognised in income.
g) Impairment of tangible and intangible assets excluding goodwill
At each balance sheet date, the Group reviews the carrying amounts of its
tangible and intangible assets to determine whether there is any indication
that those assets have suffered an impairment loss. If any such indication
exists, the recoverable amount of the asset is estimated in order to determine
the extent of the impairment loss (if any). Where the asset does not generate
cash flows that are independent from other assets, the Group estimates the
recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in
use. In assessing value in use, the estimated future cash flows are discounted
to the present value using a pre-tax discount rate that reflects current market
assessments of the time value of money and the risks specific to the asset for
which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to
be less than its carrying amount, the carrying amount of the asset
(cash-generating unit) is reduced to its recoverable amount. An impairment loss
is recognised as an expense immediately, unless the relevant asset is carried
at a re-valued amount, in which case the impairment loss is treated as a
revaluation decrease.
Where an impairment loss subsequently reverses, the carrying amount of the
asset (cash-generating unit) is increased to the revised estimate of its
recoverable amount, but so that the increased carrying amount does not exceed
the carrying amount that would have been determined had no impairment loss been
recognised for the asset (cash-generating unit) in prior years. A reversal of
an impairment loss is recognised as income immediately, unless the relevant
asset is carried at a re-valued amount, in which case the reversal of the
impairment loss is treated as a revaluation increase.
h) Taxation
The tax expense represents the sum of the tax currently payable and deferred
tax.
The tax currently payable is based on taxable losses for the period. Taxable
loss differs from net loss as reported in the income statement because it
excludes items of income or expense that are taxable or deductible in other
years and it further excludes items that are never taxable or deductible. The
Group's liability for current tax is calculated using tax rates that have been
enacted or substantively enacted by the balance sheet date.
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 computation of taxable
profit, 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. Such assets and liabilities are not recognised if
the temporary differences arise from the initial recognition of goodwill or
from the initial recognition (other than in a business combination) of other
assets and liabilities in a transaction that affects neither the tax profit nor
the accounting profit.
Deferred tax liabilities are recognised for taxable temporary differences
arising on investments in subsidiaries and associates, and interests in joint
ventures, except where the Group is able to control the reversal of the
temporary difference and it is probable that the temporary difference will not
reverse in the foreseeable future.
The carrying amount of deferred tax assets is reviewed at each balance sheet
date and reduced to the extent that it is no longer probable that sufficient
taxable profits will be available to allow all or part of the asset to be
recovered.
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 the deferred tax is also
dealt with in equity.
Deferred tax assets and liabilities are offset when there is a legally
enforceable right to set off current tax assets against current tax liabilities
and when they relate to income taxes levied by the same taxation authority and
the Group intends to settle its current tax assets and liabilities on a net
basis.
i) Financial instruments
Financial assets and financial liabilities are recognised on the Group's
balance sheet when the Group becomes a party to the contractual provisions of
the instrument.
Trade receivables
Trade receivables are measured at initial recognition at fair value, and are
subsequently measured at amortised cost using the effective interest rate
method. Appropriate allowances for estimated irrecoverable amounts are
recognised in the income statement when there is objective evidence that the
asset is impaired. The allowance recognised is measured as the difference
between the asset's carrying amount and the present value of estimated future
cash flows discounted at the effective interest rate computed at initial
recognition.
Cash and cash equivalents
Cash and cash equivalents comprises cash in hand and demand deposits, and other
short-term highly liquid investments that are readily convertible to a known
amount of cash and are subject to an insignificant risk of changes in value.
Financial liabilities and equity
Financial liabilities and equity instruments are classified according to the
substance of the contractual arrangements entered into. An equity instrument is
any contract that evidences a residual interest in the assets of the Group
after deducting all of its liabilities.
Trade payables
Trade payables are initially measured at fair value, and are subsequently
measured at amortised cost, using the effective interest rate method.
Equity instruments
Equity instruments issued by the Company are recorded at the proceeds received,
net of direct issue costs.
j) Available for sale financial assets
Available for sale financial assets are those non-derivative financial assets,
principally equity securities that are designated as available for sale. After
initial recognition, available for sale securities are measured at fair value
with gains and losses being recognised in other comprehensive income and as a
separate component of equity until the investment is derecognised or until the
investment is determined to be impaired, at which time the cumulative gain or
loss previously reported in equity is recognised in profit or loss.
The fair value of investments that are actively traded in organised financial
markets are determined by reference to quoted market bid prices at the close of
business on the balance sheet date. For investments with no active market, fair
values are determined using valuation techniques.
k) Foreign currencies
The individual financial statements of each Group Company are presented in the
currency of the primary economic environment in which it operates (its
functional currency). For the purpose of the consolidated financial statements,
the results and financial position of each Group Company are expressed in
pounds sterling, which is the functional currency of the Company, and the
presentation currency for the consolidated financial statements.
In preparing the financial statements of the individual entities, transactions
in currencies other than the entity's functional currency (foreign currencies)
are recorded at the rates of exchange prevailing on the dates of the
transactions. At each balance sheet date, monetary assets and liabilities that
are denominated in foreign currencies are retranslated at the rates prevailing
on the balance sheet date. Non-monetary items carried at fair value that are
denominated in foreign currencies are retranslated at the rates prevailing on
the date when the fair value was determined. Non-monetary items that are
measured in terms of historical cost in a foreign currency are not translated.
Exchange differences arising on the settlement of monetary items, and on the
retranslation of monetary items, are included in profit or loss for the period.
Exchange differences arising on the retranslation of non-monetary items carried
at fair value are included in the profit and loss account for the period except
for differences arising on the retranslation of non-monetary items in respect
of which gains and losses are recognised directly in equity. For such
non-monetary items, any exchange component of that gain or loss is also
recognised directly in equity.
For the purpose of presenting consolidated financial statements, the assets and
liabilities of the Group's foreign operations are translated at exchange rates
prevailing on the balance sheet date. Income and expense items are translated
at the average exchange rates for the period, unless exchange rates fluctuated
significantly during that period, in which case the exchange rates at the dates
of the transactions are used. Exchange differences arising, if any, are
classified as equity and transferred to the Group's translation reserve. Such
translation differences are recognised in the income statement in the period in
which the foreign operation is disposed of.
Goodwill and fair value adjustments arising on the acquisition of a foreign
entity are treated as assets and liabilities of the foreign entity and
translated at the closing rate.
l) Critical accounting judgements
In the process of applying the Group's accounting policies, which are described
above, the Directors have made the following judgements that have the most
significant effect on the amounts recognised in the financial information.
Valuation of share options issued and ordinary shares issued as consideration
(note 17).
m) Joint venture arrangement
The Company is a party to a joint venture arrangement in relation to the
Bullabulling Project with Auzex Resources Limited. The consolidated financial
statements include the assets that were acquired on exercise of the option to
acquire 50% of the project and the expenses that the Group incurred of its
share of the joint operation.
2. BUSINESS AND GEOGRAPHICAL SEGMENTS
For management purposes, the Group has one business segment - mining and
exploration.
3. OPERATING LOSS
1 Jan to 1 Jan to
31 Dec 31 Dec
2010 2009
GBP GBP
Operating loss is stated after charging/
(crediting)
Auditor's remuneration - as auditors 29,335 20,000
Profit on disposal of marketable securities (8,196) -
Stock option expense 218,027 12,664
Foreign exchange gain (617,725) (107,466)
Depreciation of tangible assets - 6,175
The analysis of auditors' remuneration is as
follows:
Fees payable to the Company's auditors for the 23,000 20,000
audit of Company's accounts
Fees payable to the Company's auditors for 1,668 -
taxation services
Fees payable to the Company's auditors for interim 3,231 -
accounts review
The audit of the Company's subsidiaries* 1,436 -
Total audit fees 29,335 20,000
* The audit of Zhongcheng Limited, was carried out by the subsidiaries' local
auditor in the People's Republic of China.
4. DISCONTINUED OPERATIONS
Disposal of Disposal of CCG
Lhasa Tianli Mining Ltd TOTAL
Mining Company
Ltd
1 Jan 1 Jan 1 Jan 1 Jan 1 Jan 1 Jan
to to to to to to
31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec
2010 2009 2010 2009 2010 2009
GBP GBP GBP GBP GBP GBP
Results of discontinued
operations
Results from operating - (23,615) - (183,079) - (206,694)
activities
Gain / (loss) on disposal - 116,567 - (398,396) - (281,829)
of discontinued operation
Income tax on gain on - (682,619) - - - (682,619)
disposal of discontinued
operation (see note 8)
Profit/(loss) for the - (589,667) - (581,475) - (1,171,142)
period
Effect of disposal on the
financial position
of the Group
Property, plant and - (47,564) - (673) - (48,237)
equipment
Intangible fixed assets - (6,806,742) - (479,572) - (7,286,314)
Minority interest - (38,633) - (38,952) - (77,585)
Exchange difference - 164 - (57,671) - (57,507)
Trade and other - (4,819) - (3,165) - (7,984)
receivables
Cash and cash equivalents - (323) - (827) - (1,150)
Trade and other payables - 5,391 - 182,463 - 187,854
Net assets and - (6,892,526) - (398,397) - (7,290,923)
liabilities
Consideration received, - (7,009,093) - (1) - (7,009,094)
satisfied in cash
Cash disposed of - 323 - 827 - 1,150
Net cash (inflow)/outflow - (7,008,770) - 826 - (7,007,944)
5. STAFF COSTS
Staff costs of the Group and Company were:
1 Jan to 1 Jan to 31
31 Dec Dec 2009
Group 2010
GBP
GBP
Wages and salaries 168,229 114,541
Social Security Costs 11,576 10,798
Share based payments 158,678 12,664
338,483 138,003
Average number of employees 3 7
1 Jan to 1 Jan to 31
31 Dec Dec 2009
Company 2010
GBP
GBP
Wages and salaries 95,000 78,843
Social Security Costs 11,429 8,954
Share based payments 158,678 12,664
265,107 100,461
Average number of employees 1 2
6. DIRECTORS' EMOLUMENTS
Details of the Directors' emoluments are included in the remuneration report on
annual report.
7. LOSS ATTRIBUTABLE TO MEMBERS OF THE PARENT COMPANY
The loss dealt with in the financial statements of the parent Company was GBP
238,010 (2009 - GBP1,342,868).
8. TAX
1 Jan to 1 Jan to
31 Dec 31 Dec
2010 2009
GBP GBP
Current tax - -
Deferred tax - -
Foreign withholding tax 10,986 -
Tax on continuing operations 10,986 -
Foreign tax on discontinued operation (see note 4) - 682,619
Tax expense for the year 10,986 682,619
Until it is probable that sufficient taxable profits will be available to allow
all or partial recovery of deferred tax assets of GBP1,815,796 (2009 - GBP
1,624,282), the accounting benefit of tax losses will not be reflected in the
accounts.
The charge for the year can be reconciled to the loss per the income statement
as follows:
1 Jan to 1 Jan to
31 Dec 31 Dec
2010 2009
GBP GBP
Loss for the year (690,852) (1,036,462)
Tax at the UK corporation tax rate of 28% (2008 - 30%) (193,438) (290,209)
Effect of tax rules in foreign jurisdictions 10,986 682,619
Non-deductible expenses 1,924 136
Current year losses for which no deferred tax asset 191,514 290,073
recognised
Tax expense for the year 10,986 682,619
9. LOSS PER SHARE
a) Basic loss per share
Basic loss per share is calculated by dividing the profit for the year by the
weighted average number of shares in issue during the year. The weighted
average number of shares used is 108,246,657 (2009 - 178,509,200).
b) Diluted loss per share
International Accounting Standard 33 requires presentation of diluted earnings
per share when a Company could be called upon to issues shares that would
decrease the net profit or increase the net loss per share. For a loss making
Company with outstanding options, net loss per share would only be increased by
the exercise of out-of-money options. Since it seems inappropriate to assume
that option holders would exercise out-of-money options, no adjustment has been
made to diluted loss per share for out-of-money share options.
c) Headline loss per share
The Group presents an alternative measure of loss per share after excluding all
capital gains and losses from the loss attributable to ordinary shareholders.
The impact of this is as follows:
2010 2009
Basic
Loss per share (0.006) (0.010)
Effect of loss on disposal of discontinued operations - 0.007
Adjusted loss per share (0.006) (0.003)
In December 2010, the equity share capital of the company was consolidated on a
1:2 basis. The 2009 basic and headline loss per share, taking this into
account, was GBP0.020 and GBP0.006 respectively.
10. INTANGIBLE FIXED ASSETS
For the year ended 31 December 2010
Group and Company
Deferred
Exploration
Costs
GBP
Cost and carrying amount
At 1 January 2010 -
Additions 2,011,385
Disposals -
Impairment charge for the year -
Effect of foreign exchange translation -
At 31 December 2010 2,011,385
11. INVESTMENT IN SUBSIDIARIES
For the year ended 31 December 2010
Company Year ended Year ended
31 Dec 31 Dec
2010 2009
GBP GBP
Cost and carrying amount
Opening balance 333,736 370,370
Additions 1 -
Disposals - (36,634)
Closing balance 333,737 333,736
Net book value
Closing balance 333,737 333,736
The investments represent the whole of the share capital of:
(i) Nexon Asia Group Limited is registered in the British Virgin Islands. At 31
December 2010 it had capital and reserves of GBP1,081,174 (2009 - GBP1,041,576) and
for 2010 made a loss of GBP980 (2009 - (GBP93,895)).
(ii) Central China Minerals Limited is registered in the British Virgin
Islands. At 31 December 2010 it had capital and reserves of GBP1 (2009 - GBP1) and
for 2010 made a loss of nil (2009 - nil).
(iii) CCG Copper Limited (BVI) is registered in the British Virgin Islands. At
31 December 2010 it had consolidated capital and reserves of (GBP1,520,195) (2009
- (GBP890,015)) and for 2010 made a loss of GBP461,509 (2009 - GBP989,911).
(iv) GGG Mining, formerly CCG Xinjiang Limited (BVI) is registered in the
British Virgin Islands. At 31 December 2010 it had capital and reserves of (GBP
2,358) (2009 - (GBP922)) and for 2010 made a loss of GBP1,405 (2009 - GBP939).
(v) CCG Korea Limited is registered in the British Virgin Islands. At 31
December 2010 it had capital and reserves of (GBP1,706) (2009 - (GBP1,644)) and for
2010 made a loss of nil (2009 - GBP1,673).
(vi) United Kingdom Central China Goldfields plc Beijing Representative Office
(CCG Beijing) is registered in the People's Republic of China and is treated as
an office of Central China Goldfields plc and not as a separate subsidiary.
(vii) Chengdu Zhongcheng Mining Technology Development Company Limited,
wholly-owned by CCG Copper Limited, is registered in the People's Republic of
China. At 31 December 2010 it had capital and reserves of GBP919,743 (2009 - GBP
3,156,948) and for 2010 made a loss of GBP704,000 (2009 - profit of GBP2,287,612).
(viii) GGG Australia Pty Ltd, wholly-owned by GGG Resources plc, is registered
in Western Australia. At 31 December 2010 is had capital and reserves of (GBP169)
(2009 - nil) and for 2010 made a loss of GBP160 (2009 - nil).
12. AVAILABLE FOR SALE FINANCIAL ASSETS
For the year ended 31 December 2010
Listed investment
Group and Company Year ended
31 Dec
2010
GBP
Cost and carrying amount
Opening balance -
Additions 991,258
Disposals -
Fair value adjustment 2,089,138
Effect of foreign exchange translation -
Closing balance 3,080,396
Net book value
Closing balance 3,080,396
The investment represents 8.44% interest in Auzex Resources Limited, a company
listed on the Australian Securities Exchange.
13. OTHER RECEIVABLES
Group Group Company Company
2010 2009 2010 2009
GBP GBP GBP GBP
Receivables due from Group - - 2,062,525 3,927,407
undertakings
Bullabulling environmental bond 398,327 - 398,327 -
Prepayments and other receivables 69,387 2,296,578 41,198 14,729
467,714 2,296,578 2,502,050 3,942,136
Included in prepayments and other receivables of the Group at 31 December 2009,
was GBP2,281,849 receivable from the sale of the Nimu project (RMB 24,850,000).
14. OTHER PAYABLES
Group Group Company Company
2010 2009 2010 2009
GBP GBP GBP GBP
Trade payables 101,294 25,025 53,979 18,707
Non-trade payables and accrued 466,664 699,956 466,664 28,044
expenses
567,958 724,981 520,643 46,751
Included in non-trade payables and accrued expenses of the Group at 31 December
2009, was GBP671,912 being a tax liability in Chengdu Zhongcheng Mining
Technology Development Company Limited on its recognised gain on disposal of
its subsidiary, Lhasa Tianli Mining Company Limited.
15. RELATED PARTY TRANSACTIONS
No individual party had overall control of the Company or Group during the
period and no transactions were undertaken with related parties, neither during
the current nor comparative financial years, being of a nature requiring
disclosure under IFRS's.
16. SHARE CAPITAL
2010 2009
No. GBP No. GBP
Called up, allotted and fully paid
Ordinary shares of GBP0.01 each - - 183,367,191 1,833,672
Ordinary shares of GBP0.02 each 145,423,590 2,908,472 - -
Equity Share Capital Consolidation
In December 2010, the equity share capital of the company was consolidated on a
1:2 basis.
Issue of shares
i. In February 2010, 14,044,944 1p ordinary shares were issued to Auzex
Resources Limited as part of a private placement in Auzex Resources
Limited;
ii. In July 2010, the Company issued 29,605,263 1p ordinary shares at 3.8 pence
per share;
iii. In November 2010, the Company issued 63,829,781 1p ordinary shares at
11.75 pence per share;
Share Warrants
The group has 4,934,208 share purchase warrants outstanding at a weighted
average exercise price of 12.6 pence, which are listed below:
(i) 4,934,208 share purchase warrants exercisable at a price of 12.6 pence per
share and expiring on 19 January 2012;
During 2010, 15,067,250 share purchase warrants expired.
Share Options
At 31 December 2010, the total number of options outstanding and exercisable
was 11,980,000 (2009 - 9,400,000) and was exercisable as follows:
i. 200,000 (2009 - 400,000) share options exercisable at 38p (2009 - 19p) per
share on or before 23 February 2012;
ii. 3,075,000 (2009 - 6,150,000) share options exercisable at 32p (2009 - 16p)
per share on or before 23 February 2012;
iii. 500,000 (2009 - 1,000,000) share options exercisable at 7p (2009 - 3.5p)
per share on or before 6 October 2014;
iv. 3,425,000 share options exercisable at 8p per share on or before 23 April
2015;
v. 1,150,000 share options exercisable at 10p per share on or before 30 June
2015;
vi. 3,630,000 share options exercisable at 40p per share on or before 23
November 2015;
During the year ended 31 December 2010, the Company issued, before
consolidation, 16,410,000 share options, and 1,850,000 share options lapsed as
follows:
i. 1,600,000 share options, originally exercisable at 6p on or before 13 March
2010;
ii. 250,000 share options, originally exercisable at 8.5p on or before 13 March
2010.
17. RESERVES
For the year ended 31 December 2010
Available
Group Share Share for sale
Warrant option premium asset Retained Translation
reserve reserve account reserve losses reserve
GBP GBP GBP GBP GBP GBP
At 1 January 2010 492,329 267,418 8,213,120 - (6,195,834) 723,334
Loss for the year - - - - (701,838) -
Premium arising on - - 8,111,998 - - -
issue of equity
shares
Grant of share 52,858 165,442 - - - -
options/warrants
Movement during the - - - 2,089,138 - 31,002
year
Cost of lapsed (492,329) (87,061) - - 579,390 -
warrants / options
Issue costs - - (380,733) - - -
At 31 December 2010 52,585 345,799 15,944,385 2,089,138 (6,318,282) 754,336
Available
Group Share Share for sale
Warrant option premium asset Retained Translation
reserve reserve account reserve losses reserve
GBP GBP GBP GBP GBP GBP
At 1 January 2009 492,329 310,400 8,105,920 - (4,707,240) 1,649,176
Loss for the year - - - - (1,719,081) -
Premium arising on - - 129,167 - - -
issue of equity
shares
Grant of share - 12,664 - - - -
options/warrants
Movement during the - - - - - (751,001)
year
Effect of - - - - 174,841 (174,841)
discontinued
operations
Cost of lapsed - (55,646) - - 55,646 -
warrants / options
Issue costs - - (21,967) - - -
At 31 December 2009 492,329 267,418 8,213,120 - (6,195,834) 723,334
Available
Company Share Share for sale
Warrant option premium asset Retained
reserve reserve account reserve losses
GBP GBP GBP GBP GBP
At 1 January 2010 492,329 267,418 8,213,120 - (6,079,880)
Loss for the year - - - - (238,010)
Premium arising on issue of - - 8,111,998 - -
equity shares
Grant of share options/ 52,585 165,442 - - -
warrants
Movement during the year - - - 2,089,138 -
Cost of lapsed warrants / (492,329) (87,061) - - 579,390
options
Issue costs - - (380,733) -
At 31 December 2010 52,585 345,799 15,944,385 2,089,138 (5,738,500)
Available
Company Share Share for sale
Warrant option premium asset Retained
reserve reserve account reserve losses
GBP GBP GBP GBP GBP
At 1 January 2009 492,329 310,400 8,105,920 - (4,792,658)
Loss for the year - - - - (1,342,868)
Premium arising on issue of - - 129,167 - -
equity shares
Grant of share options/warrants - 12,664 - - -
Cost of lapsed warrants / - (55,646) - - 55,646
options
Issue costs - - (21,967) - -
At 31 December 2009 492,329 267,418 8,213,120 - (6,079,880)
Warrant reserve
Warrants Warrant
in issue reserve
GBP
Group and Company
At 31 December 2010 4,934,208 52,585
Group and Company
At 31 December 2009 15,067,250 492,329
(i) Warrants granted during the year ended 31 December 2010 were valued by the
Directors using the Black-Scholes valuation model, based upon the following
assumptions:
- Term range of 18 months
- Expected dividend yield of nil
- Risk free interest rate of 2%
- Share price volatility of 60%
- Share price at date of issue of 3.8 pence.
Stock Option Reserve
Stock
Stock option
options reserve
in issue GBP
Group and Company
At 31 December 2010 11,980,000 345,799
Group and Company
At 31 December 2009 9,400,000 267,418
Share options granted during the year ended 31 December 2010 were valued by the
Directors using the Black-Scholes valuation model, based upon the following
assumptions:
Apr 2010 Jun 2010 Nov 2010
Term range 5 years 5 years 5 years
Expected dividend yield - - -
Risk free interest rate 2% 2% 2%
Share price volatility 80% 80% 20%
Share price at date of issue 2.90p 4.25p 12.625p
18. CAPITAL COMMITMENTS
At the year end the group had capital commitments relating to the joint venture
agreement of GBP 2,058,023 (AUD$ 3,100,000)
19. SHARE BASED PAYMENTS
Equity-settled share option scheme
The Company has a share option scheme for all employees of the Group. Options
are exercisable at a price equal to the average quoted market price of the
Company's shares on the date of grant. If the options remain unexercised after
a period of five years from the date of grant the options expire.
Details of the share options outstanding during the year are as follows:
Number of 2010 Number of 2009
share Weighted share Weighted
options average options average
exercise exercise
price price
(GBP) (GBP)
Outstanding at beginning of period 9,400,000 12.9p 10,000,000 13.5p
Granted during the period 16,410,000 20.0p 1,000,000 3.5p
Forfeited during the period - (1,600,000) 11.0p
Exercise during the period - -
Expired during the period (1,850,000) -
Reflecting 1:2 equity share capital (11,980,000)
consolidation
Outstanding at the end of the period 11,980,000 24.5p 9,400,000 12.9p
Exercisable at the end of the period 11,980,000 9,400,000
The options outstanding at 31 December 2010 had a weighted average exercise
price of 24.5p (2009 - 12.9p), and a weighted average remaining contractual
life of 3.35 years (2009 - 1.3 years). The aggregate of the estimated fair
values of the outstanding options is GBP 2,936,000. (2009 - GBP1,212,250).
The inputs into the Black-Scholes model are as follows:
Apr 2010 Jun 2010 Nov 2010 2009
Weighted average share price 2.90p 4.25p 12.625p 2.88p
Weighted average exercise 4.00p 5.00p 20.00p 3.50p
price
Expected volatility 80% 80% 20% 50%
Expected life (years) 5 5 5 5
Risk-free rate 2% 2% 2% 5%
Expected dividend yields - - - -
Expected volatility was determined based on management's best estimate. The
expected life used in the model has been adjusted, based on management's best
estimate, for the effects of non-transferability, exercise restrictions, and
behavioural considerations.
In 2010, the Group recognised total expenses of GBP165,442 (2009 - GBP12,664)
relating to equity-settled share-based payment transactions.
20. FINANCIAL INSTRUMENTS
Group and Company
Capital risk management
The Group manages its capital to ensure that entities in the Group will be able
to continue as going concerns while maximising the return to stakeholders
through the optimisation of the debt and equity balance. The capital structure
of the Group consists of cash and cash equivalents and equity attributable to
equity holders of the parent, comprising issued capital, reserves and retained
earnings as disclosed in note 17 and 18.
Significant accounting policies
Details of the significant accounting policies and methods adopted, including
the criteria for recognition, the basis of measurement and the basis on which
income and expenses are recognised, in respect of each class of financial
asset, financial liability and equity instrument are disclosed in note 1 to the
financial statements.
Categories of financial instruments
Group Company
Carrying value Carrying value
2010 2009 2010 2009
GBP GBP GBP GBP
Financial assets
Loans and receivables 10,854,283 6,059,020 8,238,168 4,439,674
(including cash and cash equivalents)
Financial liabilities
Payables 567,958 696,937 520,643 18,707
Financial risk management objectives
The Group's financial function provides services to the business, monitors and
manages the financial risks relating to the operations of the Group. These
risks include market risk (including currency risk, fair value interest rate
risk and price risk), credit risk, liquidity risk and cash flow interest rate
risk.
The Group does not enter into or trade financial instruments, including
derivative financial instruments, for any purpose.
Market risk
The Group's activities expose it primarily to the financial risks of changes in
foreign currency exchange rates. There has been no change to the Group's
exposure to market risks or to the manner in which it measures and manages the
risk.
Foreign currency risk management
The Group undertakes certain transactions denominated in foreign currencies.
Hence, exposures to exchange rate fluctuations arise.
The carrying amounts of the Group's and Company's foreign currency denominated
monetary assets and monetary liabilities at the reporting date are as follows:
Assets
2010 2009
GBP GBP
Cash denominated in foreign currency 10,397,771 3,264,904
Foreign currency sensitivity analysis
The Group is exposed to the currency of the People's Republic of China (RMB)
and the Australian dollar (AUD).
The following table details the Group's sensitivity to a 20% increase and
decrease in the Sterling against the each foreign currency. 20% is the
sensitivity rate used when reporting foreign currency risk internally to key
management personnel and represents management's assessment of the reasonably
possible change in foreign exchange rates. The sensitivity analysis includes
only outstanding foreign currency denominated monetary items and adjusts their
translation at the period end for a 20% change in foreign currency rates. A
negative number below indicates a decrease in profit where the Sterling
strengthens 20% against the relevant currency. For a 20% weakening of the
Sterling against the relevant currency, there would be an equal and opposite
impact on the profit and the balances below would be positive.
Currency impact
2010 2009
GBP GBP
Effect of a 20% change in RMB (427,466) (544,151)
Effect of a 20% change in AUD (1,297,423) -
(1,724,889) (544,151)
The Group's sensitivity to foreign currency has increased during the current
period, due to the inclusion of cash held in Australian dollars.
Liquidity risk management
Ultimate responsibility for liquidity risk management rests with the Board of
Directors, which has built an appropriate liquidity risk management framework
for the management of the Group's short term funding and liquidity management
requirements. The Group manages liquidity risk by maintaining adequate
reserves, by continuously monitoring forecast and actual cash flows and
matching the maturity profiles of financial assets and liabilities.
Liquidity and interest risk tables
The following table details the Group's remaining contractual maturity for its
non-derivative financial liabilities. The tables have been drawn up based on
the undiscounted cash flows of financial liabilities based on the earliest date
on which the Group can be required to pay. The table includes the principal
cash flows. All amounts are repayable within 1 year.
Group Company
2010 2009 2010 2009
GBP GBP GBP GBP
Non-interest bearing 567,958 724,981 520,643 46,751
The Group and Company has no financial
derivatives.
21. SUBSIDIARIES
Details of the Company's subsidiaries at 31 December 2010 were as follows:
Place of Proportion Proportion
incorporation of of voting
(or ownership power held
Name of subsidiary registration) interest % Principal activity
and operation %
Nexon Asia Group Ltd BVI 100% 100% Holding Company
CCG Copper Ltd BVI 100% 100% Holding Company
Central China BVI 100% 100% Holding Company
Minerals Ltd
GGG Mining Ltd, BVI 100% 100% Holding Company
previously CCG
Xinjiang Ltd(i)
CCG Korea Ltd BVI 100% 100% Holding Company
Zhongcheng Ltd(ii) PRC 100% 100% Holding Company
CCG Beijing(iii) PRC 100% 100% Representative
Office
GGG Australia Pty AUS 100% 100% Local Operating
Ltd Company
(i) CCG Xinjiang Ltd changed its name to GGG Mining Limited during the year
ended 31 December 2009.
(ii)Chengdu Zhongcheng Mining Technology Development Company Limited
(Zhongcheng) is a 100%-owned subsidiary of CCG Copper (BVI) Limited. Zhongcheng
Ltd disposed of its 75% interest in Lhasa Tianli Mining Company Limited during
the year ended 31 December 2009.
(iii)United Kingdom Central China Goldfields plc Beijing Representative Office
is a representative office of the Company and not a subsidiary in the Group.
22. POST BALANCE SHEET EVENTS
On 14 March 2011 the Company announced its intention to make an off-market
scrip offer for all of the issued shares in Auzex Resources Limited that it
does not own. The Offer is for seven GGG Shares for every five Auzex shares
held, valuing Auzex at approximately A$ 94.9 million - a 39.3% premium to the
Auzex's closing share price on 11 March 2011. If the takeover is successful it
will consolidate the ownership of the Bullabulling Gold Project into a single
merged entity. The Company is applying for listing on the Australian Stock
Exchange which, if successful, will give the Company dual-listed status and
access to capital markets in the United Kingdom and Australia.
END
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