RNS Number:5349W
Gippsland Limited
15 March 2004
GIPPSLAND LIMITED
ABN 31 004 766 376
FINANCIAL REPORT
FOR THE HALF YEAR ENDED
31 DECEMBER 2003
GIPPSLAND LIMITED
ABN 31 004 766 376
and its Controlled Entities
DIRECTORS' REPORT
The Directors present the financial report of the economic entity being
Gippsland Limited ("the Company") and its controlled entities for the half year
ended 31 December 2003.
DIRECTORS
The following persons were Directors of the Company who held office during or
since the end of the half year:
Robert John (Jack) Telford
John Morrison Chisholm
John Damian Kenny
REVIEW OF OPERATIONS
The consolidated operating loss after tax for the half year was $726,720 (2002 -
$313,803).
The Company continued its business of mineral exploration with the main focus
being on the development of the Abu Dabbab tantalite, tin and feldspar project
in Egypt in which Gippsland has a 50% economic interest by way of an
incorporated joint venture with the Egyptian Government. The bankable
feasibility study has commenced on the project and is expected to be completed
by 30 June 2004.
On 5 August 2003 the Company issued a prospectus in relation to the offer of
14,000,000 ordinary shares at an issue price of 4 cents per share and 14,000,000
free attaching listed options to raise a total of $560,000. The offer was closed
on 8 September 2003 fully subscribed. The free attaching listed options are
exercisable at 9 cents each on or before 31 December 2007.
On 10 December 2003 the Company completed a share placement by issuing 6,000,000
ordinary shares at an issue price of 5 cents per share and 3,000,000 free
attaching options to raise a total of $300,000. The free attaching listed
options are exercisable at 9 cents each on or before 31 December 2007.
On 9 March 2004 the Company's securities were admitted to be traded on the
London Stock Exchange's Alternative Investment Market ("AIM").
Priorto the Company's admission to AIM the Company completed a share placement
whereby 25,000,000 ordinary shares were issued to private and institutional UK
based investors at an issue price of 6.8 cents each (2.8 pence) raising a total
of approximately$1.7 million (700,000) before issue costs. The funds raised
will be applied to complete the bankable feasibility study on the Abu Dabbab
project in Egypt, augment working capital and satisfy costs related to the
Company's listing on AIM.
In addition 2,790,567 unlisted options were issued to Hoodless Brennan &
Partners, the broker who facilitated the share placement. The options are
exercisable at 2.8 pence (approximately 6.8 cents) each and expire on 8 March
2007.
The financial effect of the AIM Listing and share placement completed on 9 March
2004 have not been brought to account at 31 December 2003.
Signed in accordance with a resolution of the Board and dated 15th March 2004.
RJ TELFORD
DIRECTOR
GIPPSLAND LIMITED
ABN 31 004 766 376
and its Controlled Entities
CONDENSED CONSOLIDATED
STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2003
31 December 30 June 31 December
2003 2003 2002
$ $ $
CURRENT ASSETS
Cash assets 255,483 91,013 210,179
Receivables 28,211 17,492 13,082
Other assets 17,250 - -
TOTAL CURRENT ASSETS 300,944 108,505 223,261
NON CURRENT ASSETS
Property, plant and equipment 8,313 11,859 15,542
TOTAL NON CURRENT ASSETS 8,313 11,859 15,542
TOTAL ASSETS 309,257 120,364 238,803
CURRENT LIABILITIES
Payables 147,176 60,892 33,746
Provisions 7,248 6,489 4,542
TOTAL CURRENT LIABILITIES 154,424 67,381 38,288
TOTAL LIABILITIES 154,424 67,381 38,288
NET ASSETS 154,833 52,983 200,515
EQUITY
Contributed equity 12,771,003 11,942,434 11,649,134
Accumulated losses (12,616,170) (11,889,451) (11,448,619)
TOTAL EQUITY 154,833 52,983 200,515
GIPPSLANDLIMITED
ABN 31 004 766 376
and its Controlled Entities
CONDENSED CONSOLIDATED
STATEMENT OF FINANCIAL PERFORMANCE
FORTHE HALF YEAR ENDED 31 DECEMBER 2003
2003 2002
$ $
Revenues from ordinary activities 4,257 3,863
Employee expenses (25,284) (22,409)
Depreciation (3,546) (3,683)
Project feasibility and exploration expenses (420,859) (112,640)
Management and consulting expenses (77,050) (92,190)
Corporate office expenses (35,440) (41,981)
Provision for diminution in value of investments (59,039) -
Provision for non-recovery of loan (59,039) -
Other expenses from ordinary activities (50,720) (44,763)
---------- ----------
Loss from ordinary activities before income tax
expense (726,720) (313,803)
Income tax expense relating to ordinary activities ________- ________-
Net loss attributable to members of the parent entity (726,720) (313,803)
=========== ===========
Total changes in equity other than those resulting
from transactions with owners as owners (726,720) (313,803)
Basic loss per share (cents per share) (0.7) (0.4)
Diluted loss per share (cents per share) (0.7) (0.4)
GIPPSLAND LIMITED
ABN 31 004 766 376
and its Controlled Entities
CONDENSED CONSOLIDATED
STATEMENT OF CASH FLOWS
FOR THE HALF YEAR ENDED 31 DECEMBER 2003
2003 2002
$ $
CASH FLOW FROM OPERATING ACTIVITIES
Receipts from operations 31,754 28,065
Payments to suppliers and employees (582,033) (328,838)
Interest received 4,257 3,864
Net cash used in operating activities (546,022) (296,909)
CASH FLOW FROM INVESTING ACTIVITIES
Payments for investments (59,039) -
Net cash used in investing activities (59,039) -
CASH FLOW FROM FINANCING ACTIVITIES
Loan to Egyptian Company for Mineral Resources (59,039) -
Proceeds from share issues 860,000 236,334
Payments for share issues (31,430) -
Net cash provided by financing activities 769,531 236,334
Net increase/(decrease) in cash held 164,470 (60,575)
Add opening cash broughtforward 91,013 270,754
Closing cash carried forward 255,483 210,179
GIPPSLAND LIMITED
ABN 31 004 766 376
and its Controlled Entities
NOTES TO THE FINANCIAL REPORT
FOR THE HALF YEAR ENDED 31 DECEMBER 2003
NOTE 1: STATEMENT OF ACCOUNTING POLICIES
BASIS OF PREPARATION OF THE HALF-YEAR FINANCIAL REPORT
The half-year financial report is a general-purpose financial report, which has
been prepared in accordance with the requirements of the Corporations Act 2001,
Accounting Standards including AASB 1029 "Interim Financial Reporting", Urgent
Issues Group Consensus Views and other mandatory professional reporting
requirements.
The half-year financial report has been prepared in accordance with the
historical cost convention.
The accounting policies have been consistently applied by the entities in the
economic entity and are consistent with those applied in the 30 June 2003 Annual
Financial Report.
For the purpose of preparing the half-year financial report, the half-year has
been treated as a discrete reporting period.
The half-year financial report does not include all notes of the type normally
included within the annual financial report and therefore cannot be expected to
provide as full an understanding of the financial performance, financial
position and financing and investing activities of the consolidated entity as
the full financial report.
The half-year financial report should be read in conjunction with the Annual
Financial Report of Gippsland Limited as at 30 June 2003. It is also recommended
that the half-year financial report be considered together with any public
announcements made by Gippsland Limited and its controlled entities during the
half-year ended 31December 2003 in accordance with the continuous disclosure
obligations arising under the Corporations Act 2001.
NOTE 2: EVENTS SUBSEQUENT TO REPORTING DATE
On 9 March 2004 the Company's securities were admitted to be traded on the
London Stock Exchange's Alternative Investment Market ("AIM").
Prior to the Company's admission to AIM the Company completed a share placement
whereby 25,000,000 ordinary shares were issued to private and institutional UK
based investors at an issue price of 6.8 cents (2.8 pence) raising a total of
approximately $1.7 million (700,000) before issue costs. The funds raised will
be applied to complete the bankable feasibility study on the Abu Dabbab project
in Egypt, augment working capital and satisfy costs related to the Company's
listing on AIM.
In addition 2,790,567 unlisted options were issued to Hoodless Brennan &
Partners, the broker who facilitated the share placement. The options are
exercisable at 2.8 pence (approximately 6.8 cents) and expire on 8 March 2007.
The financial effect of the above transactions have not been brought to account
at balance date.
NOTE 3: CONTINGENT LIABILITIES
There have been no changes in contingent liabilities since the last annual
reporting date.
NOTE 4: SEGMENT INFORMATION
The Company operates within the mineral exploration industry in Australia and
Egypt.
Australia Egypt Consolidated
Dec Dec Dec DecDec Dec
2003 2002 2003 2002 2003 2002
$ $ $ $ $ $
Total Segment
Revenue 4,257 3,863 - - 4,257 3,863
-------- -------- -------- -------- -------- --------
Segment Result (338,219) (159,868) (388,501) (159,935) (726,720) (313,803)
======== ======== ======== ======== ======== ========
GIPPSLAND LIMITED
ABN 31 004 766 376
and its Controlled Entities
NOTES TO THE FINANCIAL REPORT
FOR THE HALF YEAR ENDED 31 DECEMBER 2003
NOTE 5: CONTRIBUTED EQUITY
31 December 31 December
2003 2003
$ Number
Issued capital:
-----------------
114,528,359 (June 2003: 94,528,359) fully paid
ordinary shares 12,771,003 94,528,359
========== ==========
Movement
----------
Opening Balance 11,942,434
Issue of 14,000,000 shares at an issue price of
4 cps pursuant to Prospectus dated 5 August 2003
- funds applied to the Abu Dabbab project 560,000 14,000,000
Less: Issue costs of capital raising (10,431) -
Issue of 6,000,000 shares at an issue price of 5
cps pursuant to share placement 300,000 6,000,000
- funds applied to the Abu Dabbab project
Less: Issue costs of capital raising (21,000) -
---------- ----------
Closing balance 12,771,003 114,528,359
========== ==========
As at 31 December 2003 the Company had the following unlisted options on issue:
(i) 250,000 unlisted options exercisable at 20 cents each by
15 February 2004;
(ii) 250,000 unlisted options exercisable at 30 cents each by 15
February 2004; and
(iii) 11,000,000 unlisted options exercisable at 14 cents each by
14 July 2004.
In the case of (i) and (ii) above these options have expired since 31 December
2003. In the case of (iii) above these options were agreed to be cancelled by
the optionholders for no consideration on 12 January 2004.
Refer Note 2 for details of securities issued subsequent to 31 December 2003.
NOTE 6: ACQUISITION OF AN ASSOCIATE COMPANY
In 10 October 2003 a wholly-owned subsidiary of the Company, Tantalum
International Pty Ltd acquired a 50% interest in Tantalum Egypt LLCfor cash
consideration of $59,039. The remaining 50% interest in Tantalum Egypt LLC is
held by the Egyptian Company for Mineral Resources which in turn is 100% owned
by the Egyptian Geological Survey and Mining Authority, which is itself owned by
the sovereign state that is the Arab Republic of Egypt.
GIPPSLAND LIMITED
ABN 31 004 766 376
and its Controlled Entities
DIRECTOR'S DECLARATION
The directors of the company declare that:
1 The financial statements and notes as set out on pages 3 to 7:
(a) comply with Accounting Standard AASB 1029: Interim Financial Reporting and
the Corporation Regulations 2001; and
(b) give a true and fair view of the financial position of the consolidated
entity as at 31 December 2003 and its performance for the half year ended on
that date.
2 In the Directors' opinion there are reasonable grounds to believe that the
company will be able to pay its debts as and when they become due and payable.
This declaration is made in accordance with a resolution of the Board of
Directors.
Dated this 15th day of March 2004.
RJ TELFORD
DIRECTOR
This information is provided by RNS
The company news service from the London Stock Exchange
END
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