14 September 2007
AIM RELEASE
KIMBERLEY DIAMOND COMPANY NL (the Company) (AIM: KDC)
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2007
The Company is pleased to release its annual financial report for the year
ended 30 June 2007. Following are the main financial statements and extracts
from the directors' report. A full formatted copy of the annual financial
report, including the notes to the accounts and the auditors report can be
found on the Company's website www.kimberleydiamondco.com.au.
Karl Simich
DIRECTOR
The Company's Nominated Advisor is RFC Corporate Finance Ltd, contact Stuart
Laing or Steve Allen - phone +618 9480 2500.
KIMBERLEY DIMAOND COMPANY NL ABN 91 061 899 634
12 WALKER AVENUE WEST PERTH 6005 WESTERN AUSTRALIA
PO BOX 806 WEST PERTH WESTERN AUSTRALIA 6872
TEL (+61-8) 9321 5887 FAX (+61-8) 9321 5884
EMAIL general@kimres.com.au
WWW www.kimberleydiamondco.com.au
Extracts from the Directors' Report for the Year Ended 30 June 2007
Nature of Operations and Principal Activities
The principal activities of the Group during the course of the financial year
consisted of diamond mining, processing, marketing and exploration. There were
no significant changes in the nature of the activities of the Group during the
year.
Operating and Financial Review
The consolidated loss attributable to members of the parent entity for the
year ended 30 June 2007 was $30,161,000 (2006: $13,316,000). Net loss for the
period was $31,866,000 (2006: $13,132,000) including minority interests.
Expansion projects, strategies and future prospects
The Company continued its capital expansion program during the 2006/2007
financial year, with the addition of the Ellendale Pipe 4 Operation and
upgrade works on the Ellendale Pipe 9 Operation, with the target of developing
the Ellendale Operation to a capacity in excess of 8 million tonnes per annum.
Production and Sales Summary
Group Operating Kimberley Diamond Blina
Statistics Company NL Diamonds NL Group
2006/2007
Ore processed 4,937,000 46,000 4,983,000
(tonnes)
Ore treated 4,796,000 46,000 4,842,000
(tonnes)
Carats recovered 378,000 7,000 385,000
Treated grade 7.9 15.2 8.0
(cpht)
Carats sold 363,600 6,200 369,800
USD per carat 134 132 134
AUD per carat 171 159 171
Kimberley Diamond
Company NL
Plant Performance Ellendale 9 Ellendale 4 Total
Ore processed
(tonnes)
September quarter 685,000 220,000 904,000
December quarter 418,000 786,000 1,205,000
March quarter 439,000 844,000 1,283,000
June quarter 623,000 923,000 1,544,000
TOTAL 2,164,000 2,773,000 4,937,000
Ore treated
(tonnes)
September quarter 647,000 219,000 867,000
December quarter 382,000 784,000 1,166,000
March quarter 407,000 843,000 1,250,000
June quarter 591,000 923,000 1,514,000
TOTAL 2,027,000 2,769,000 4,796,000
Carats recovered 107,400 269,500 378,000
Treated grade 5.3 9.7 7.9
(cpht)
NOTES:
* Rounding of tonnes to the nearest 1,000 and carats to the nearest
100 may result in computational discrepancies in these tables.
* Total carats recovered includes minor carat recoveries from audit
process.
Ellendale Pipe 4 - South Plant
The Company completed construction and ramp-up of the new Ellendale 4
Operation in September 2006. This new stand-alone mining and processing
operation at Ellendale Pipe 4 was commissioned to treat 4.4 million tonnes of
ore per annum (nameplate 600tph) and is located 16km south of the Company's
existing operations at Ellendale Pipe 9.
The Ellendale 4 South Plant produced three consecutive record quarters of
production following its commissioning in September 2006.
Studies are in progress on plant optimisation initiatives to further increase
Ellendale 4 production from the current level of 550tph to 700-800tph with the
installation of additional crushing capacity to remove a plant bottleneck.
Ellendale Pipe 9 - East and West Plants
Following construction and commissioning delays, the Company also completed
construction activities and progressed ramp-up of an expanded Ellendale 9 East
Plant, from a nameplate capacity of 2.2 million tonnes per annum (300tph) to
3.3 million tonnes per annum (450tph). At June 2007 the East Plant was working
towards its steady state nameplate throughput level of 450tph.
The smaller production plant at Ellendale 9, the 0.6 million tonne per annum
(100tph) West Plant, continued to perform strongly during the year.
Various structural work is in place to allow the further upgrade of the East
Plant to 4.4mtpa (600tph), including a 600tph front end primary crusher. Any
further upgrades above the nameplate 450tph level will be assessed following
the achievement of steady state throughput levels.
Financial results
EBITDA and Net Loss Attributable to Equity Holders of the Company
The Group's Earnings before interest, taxes, depreciation and amortisation
(EBITDA) was a loss of $13,697,000. The loss for the year ended 30 June 2007
attributable to equity holders of the Company was $30,161,000.
The Company's Earnings before interest, taxes, depreciation and amortisation
(EBITDA) was a loss of $10,678,000, including $1,868,000 of royalty expenses
payable to wholly owned subsidiary companies (subsequently eliminated on
consolidation of the Group). The Company's net loss for the year ended 30 June
2006 was $27,445,000.
The EBITDA of the Company excluding royalty charges payable to wholly-owned
subsidiaries was a loss of $8,810,000.
Value extracted and cash unit operating costs per tonne - the Company
Kimberley Diamond
Company NL
$'000 $ per tonne
Revenue from sale of product 62,264
Diamond inventory movement 1,677
Value of diamonds extracted 63,941 12.95
Royalty payable (excluding to (2,635) (0.53)
subsidiaries)
Value extracted net of royalties 61,306 12.42
Ellendale cost of product sold (74,147) (15.02)
Gross margin at Ellendale (12,841) (2.60)
NOTES:
* Royalties payable to subsidiary companies are excluded from this analysis as
they are incurred within the wholly-owned Group.
* `Ellendale cost of product
sold' above differs from `Total cost of product sold' in the Company's Income
Statement by $3,604,000, representing all royalties incurred ($4,503,000) and
marketing ($778,000) offset by diamond inventory movement ($1,677,000).
*`Gross margin at Ellendale' above differs from `Gross loss' in the Company's
Income Statement by $2,646,000, representing marketing ($778,000) and
royalties payable to subsidiary companies within the wholly-owned Group
($1,868,000).
The above summary is management's representation of the Company's Ellendale
Operation value extracted and cash unit operating costs per tonne. The Income
Statements of the Company and the Group for the year ended 30 June 2007 are
contained within this report.
Revenue from sale of goods
Revenue
Revenue was impacted by the plant expansion programs, particularly the delays
experienced in the construction and commissioning of the upgrade of the
Ellendale 9 East Plant. These delays limited throughput and resulted in
significantly reduced carat production and sales.
The Company's revenue is particularly sensitive to the throughput levels
achieved at the Ellendale 9 Operation as this produces the highest value
diamonds of the two operations, with carat prices around 2.5 times that
achieved from the Ellendale 4 Operation.
Value per tonne processed
Reduced throughput from the Ellendale 9 East Plant also adversely impacted
value per tonne of product extracted. Ellendale 9 gross ore value per tonne is
approximately 1.5 times that achieved at Ellendale 4, therefore a decline in
the proportion of ore processed through the Ellendale 9 Plants results in a
reduction in total ore value per tonne achieved from the combined Ellendale 9
and 4 Operations.
International diamond market
Strong results were achieved from second half 2006/2007 diamond sales
following general market weakness in the first half of the year.
An independent report commissioned by the Company concluded that the
short-term outlook for the diamond market is positive, with retail demand
increasing steadily and a decrease in supply expected to underpin price
increases in 2007 for both rough and polished goods. There appears to be a
strong long-term outlook for the diamond market over the next 5-7 years with
retail demand growth expected to outstrip supply.
The upper end of the market, which tended to be largely insulated against last
year's market fluctuations, continues to perform strongly with record demand
for better quality larger and specialty diamonds. This is strategically
important for the Company, given that Ellendale produces a significant
proportion of the world's fancy yellow stones.
Cash unit operating costs
Impact of increasing cost structures within the mining industry
The resources boom has created continued cost pressure within the industry in
which the Group operates, particularly in the areas of energy and personnel
costs, which represent a significant part of the Company's costs structures in
operating a remote mine. The Company continues to monitor and control these
cost pressures wherever possible and has responded to increase operating
capacity and create greater economies of scale through its capital expansion
programs.
Impact of capital expansion programs
The capital expansion programs undertaken and completed during 2006/2007
resulted in periods with reduced plant throughput levels (during times of
plant shutdown for construction, tie in and ramp-up phases) as well as
increased throughput rates (once plant ramp-up targets were achieved).
Given the remote nature of the Ellendale Operation it has a significant level
of fixed costs, resulting in significant unit cost savings through economies
of scale when plant throughput rates are increased.
Cash unit operating costs per tonne
Monthly cash unit operating costs reduced to around $13 per tonne, from
historical levels of over $15 per tonne, with the commissioning of the South
Plant at Ellendale 4 in September 2006. Following that, shutdowns at the
Ellendale 9 East Plant during the December 2006 quarter caused throughput to
fall from 450,000 to 350,000 tonnes per month, with a corresponding return to
higher levels of cash unit operating costs to around $16 per tonne.
East Plant commissioning issues experienced during the March 2007 quarter
restricted plant throughput to 400,000 to 450,000 tonnes per month which
resulted in unit costs in the range of $14-15 per tonne.
In the June 2007 quarter, as the East Plant returned improved throughput
levels during ramp up and the South Plant continued to improve, unit operating
costs again reduced to the levels seen earlier in the year. The month of June
returned cash unit operating costs of $12.50 per tonne from throughput of
550,000 tonnes (6.6 million tonnes per annum). This indicates that medium-term
target unit operating cost levels of $11-12 per tonne will be achievable when
plant throughput reaches targeted nameplate levels of over 8 million tonnes
per annum.
Reduction in royalty expense
In September 2006 the Company completed the acquisition of a combined 3 per
cent private royalty interest at Ellendale, via the issue of $19.2 million
Company shares, and secured a reduced government royalty rate from 7.5 per
cent to 5 per cent. The combined royalty reduction has reduced the total
royalty commitment from 10.5 per cent to 5 per cent of gross sales.
Difference between the Company and Group royalty expense
As the 3 per cent private royalty interest was acquired through the
acquisition of subsidiaries holding those rights, these royalty interests are
now held within wholly-owned subsidiary companies of the parent entity. As a
result, the Company recognises an 8 per cent royalty expense in its Income
Statement, representing the 5 per cent State Government royalty and 3 per cent
royalty due to its wholly-owned subsidiary companies. The Group recognises
only a 5 per cent royalty (State Government royalty) as the only royalty
payable outside the Group.
Sale of 11% interest in Blina Diamonds NL (39%)
In March 2007, the Company sold 20,000,000 shares held in its listed
subsidiary company, Blina Diamonds NL ("Blina"), for $0.54 per share for
proceeds of $10,800,000. This reduced the Company's ownership interest in
Blina from 51% to 40% of issued capital, with the Company remaining the single
largest shareholder in Blina and continuing to control and support Blina's
exploration and trial mining programs.
The sale of Blina shares resulted in a profit in the Company of $9,889,000,
and a profit in the Group of $8,186,000 after the Company profit was adjusted
for the impact of the dilution of the ownership interest in Blina's net
assets.
The Company's ownership interest in Blina reduced by a further 1% during the
period as a result of the issue by Blina of new shares and the exercise of
Blina options.
The Company's remaining 39% shareholding in Blina had a market value of
$32,454,000 as at 30 June 2007, recognised at cost in the Balance Sheet of the
Company at $3,105,000.
REVIEW OF FINANCIAL CONDITION
Net working capital position and interest bearing liabilities
At 30 June 2007 the Group had a net working capital deficit of $24,139,000,
while the Company had a net working capital deficit of $26,994,000.
The Group and the Company carry a total of $24,625,000 interest bearing
liabilities in their Balance Sheets relating to the financing facility
provided by Societe Generale and Westpac ("existing project financiers") for
the construction of the Ellendale 4 Operation (Project Facility) and a working
capital facility. $22,271,000 is disclosed as current interest bearing
liabilities payable within 12 months of balance date. Current scheduled
repayments of bank debt are $5,000,000 on each of 1 October 2007, 1 January
2008 and 1 April 2008, with a final $2,443,000 due on 1 July 2008 (disclosed
within non-current interest bearing liabilities). The Company also has
$7,757,000 drawn against a working capital facility which is reviewed
periodically and has been rolled until 30 September 2007.
The Company's financial projections were not met for the 2006/2007 financial
year, predominantly due to the Company not achieving nameplate throughput on
its processing plants. This has required the Company to seek and obtain
waivers of, and variations to, the terms of its loan agreements with its
project financiers. The Company believes that it is likely to require further
variations to the financial covenants within the loan agreements, which if not
agreed could require the scheduled payments to be accelerated.
Repayment of the Company's debt obligations, whether required under the
existing repayment schedule or on an accelerated basis, or in the event that
the working capital facility is not rolled past 30 September 2007, is expected
to be funded by one or more of the following:
- Positive cash flows from operations;
- Issue of new equity in the Company (there are restrictions on the Company's
ability to issue new shares during the Gem Diamonds bid period (refer below));
- New debt financing arrangements (refer Gem Diamonds facility below); or
- Sale of shares in Blina Diamonds NL (subject to the approval of the existing
project financiers).
Gem Diamonds takeover bid and working capital facility
The Company is subject to a takeover bid from Gem Diamonds Australia Pty
Limited, a wholly owned subsidiary of Gem Diamonds Limited ("Gem Diamonds"),
to acquire the entire issued capital of the Company for $0.70 per share. The
bid is subject to a number of conditions.
In September 2007 Gem Diamonds loaned the Company $10,000,000 under a working
capital facility, repayable within 60 days after the close of the bid period,
being 2 November 2007.
Gem Diamonds has been granted a fixed and floating charge over all of the
Company's assets and a mining mortgage over the Company's tenements, ranking
second to the Company's existing secured project financiers.
Despite the bid being recommended unanimously by the directors of the Company,
it is not known whether the takeover bid will be successful and as a result
significant uncertainty exists in regard to the Company's cash flow
requirements following an unsuccessful bid process.
In the event that the takeover is not successful the Gem Diamonds working
capital facility would become repayable within 60 days of the end of the bid
period. The facility would become repayable immediately if and when the
Company's existing project financiers accelerate the due date for repayment of
their facilities, the Company fails to pay any amount (of at least $100,000)
due and payable to Gem Diamonds, or the Company breaches any provision of the
Implementation Agreement between the Company and Gem Diamonds relating to the
takeover bid.
In this event, repayment of the Gem Diamonds facility is expected to be funded
by one or more of the following:
- Issue of new equity in the Company (15% placement capacity available); or
- Sale of shares in Blina Diamonds NL (subject to the approval of the existing
project financiers).
However, none of these potential funding options is currently being solicited
as the Company remains committed to the successful completion of the Gem
Diamonds bid. As discussed above the bid is subject to a number of conditions.
The satisfaction of certain conditions is outside the control of the Company.
If a change in control of the Company occurs, the Company's existing project
financiers can demand that their outstanding loans be repaid and discharged on
30 days notice. The Company has been informed by one of its existing project
financiers, Westpac, that it intends to exercise its rights and demand
repayment of its portion of the financing facilities in the event of a change
in control of the Company. Gem Diamonds has advised the Company that Gem has
agreed with Westpac that the facilities will be repaid immediately if Gem
holds more than 50% of the issued shares in the Company and the offer is
declared unconditional. The other project financier, Societe Generale, has
reserved its rights in relation to the amounts owing to it, should a change in
control occur.
The Company's Board of Directors has considered this bid in its assessment of
any potential impairment of assets and concluded that the bid supports the
current carrying value of the Group's non-current assets.
Cash flow projections and assumptions
The Board of Directors is aware of the Company's working capital requirements
and the potential need to raise additional funds to enable the Company and the
Group to meet its obligations as and when they fall due.
The Company's twelve month cash flow projections do not include repayment of
the Gem Diamonds facility or the project financiers working capital facility
(assumed rolled for a further twelve months). These projections indicate that
further funding of approximately $10,000,000 will be required in January 2008,
in particular to fund the Company's working capital requirements in the
lead-up to the 2007/2008 wet season. Importantly, the projected timing of the
requirement for these funds is subsequent to the close of the Gem Diamonds bid
period.
These additional funds would need to be sourced from one or more of the
following:
- Issue of new equity in the Company (possibly subject to restrictions on the
Company's ability to issue new shares should this be required during the Gem
Diamonds bid period);
- Increase to the limit of the Gem Diamonds facility (subject to the approval
of Gem and the existing project financiers); or
- Sale of shares in Blina Diamonds NL (subject to the approval of the existing
project financiers).
Going concern basis of preparation
The Company considers the going concern basis of preparation to be appropriate
for this financial report.
The directors are confident of sourcing funds if and when necessary to meet
the Company's obligations as and when they fall due. There is uncertainty
regarding the outcomes of funding alternatives set out above. In the event
that the Company is unable to secure sources of funding, the Company may not
be able to continue as a going concern. Accordingly, the Company may be
required to realise assets and extinguish liabilities other than in the normal
course of business and at amounts different to those stated in the financial
report.
The Company will continue to keep the market informed of all material matters
including, but not limited to, the Group and Company's financial position, the
Gem Diamonds bid and financing facilities.
Dividends
The directors have not recommended the declaration of a dividend. No dividends
were paid or declared during the period.
INCOME STATEMENTS FOR THE YEAR ENDED 30 JUNE 2007
Consolidated The Company
2007 2006 2007 2006
Note $'000 $'000 $'000 $'000
Revenue from sale of product 63,468 35,864 62,264 34,134
Cost of product sold
Site costs (74,917) (35,997) (72,588) (34,629)
Marketing (1,041) (852) (778) (582)
Royalties 7 (2,706) (3,731) (4,503) (3,559)
Restoration and environmental (537) (437) (537) (437)
Inventory movement 1,063 2,496 655 2,159
Total cost of product sold (78,138) (38,521) (77,751) (37,048)
Gross loss (14,670) (2,657) (15,487) (2,914)
Other income 6 45 3 119 63
Gain on closure of foreign exchange 1,764 75 1,764 75
contracts
Gain on dilution of Blina Diamonds 8,186 2,847 9,889 -
NL shares
Administrative expenses (6,275) (3,746) (5,610) (3,434)
Share option issue expenses (1,315) (2,369) (1,345) (2,369)
Other expenses 7 (1,432) (11) (8) -
Earnings/(Loss) before interest,
taxes, (13,697) (5,858) (10,678) (8,579)
depreciation and amortisation
(EBITDA)
Depreciation and amortisation 7 (14,404) (5,720) (12,608) (5,707)
Loss before net financing and tax (28,101) (11,578) (23,286) (14,286)
Financial income 703 835 494 576
Financial expenses (4,654) (2,389) (4,653) (2,387)
Net financing costs 9 (3,951) (1,554) (4,159) (1,811)
Loss before tax (32,052) (13,132) (27,445) (16,097)
Income tax benefit 11 186 - - -
Net loss for the period (31,866) (13,132) (27,445) (16,097)
Attributable to:
Equity holders of the parent (30,161) (13,316) (27,445) (16,097)
Minority interest (1,705) 184 - -
Net loss for the period (31,866) (13,132) (27,445) (16,097)
Basic and diluted loss per share
attributable to 12 ($0.078) ($0.045)
ordinary equity holders
The Group is in a loss making position and it is unlikely that the conversion
to, calling of, or subscription for, ordinary share capital in respect of
potential ordinary shares would lead to a diluted earnings per share that
shows an inferior view of the earnings per share. For this reason, the diluted
loss per share is therefore the same as basic loss per share.
The income statements are to be read in conjunction with the accompanying
notes.
BALANCE SHEETS FOR THE YEAR ENDED 30 JUNE 2007
Consolidated The Company
2007 2006 2007 2006
Note $'000 $'000 $'000 $'000
Current Assets
Cash and cash equivalents 13 6,624 25,538 5,283 18,629
Trade and other receivables 14 2,395 2,392 1,932 1,793
Inventories 15 10,736 8,416 9,910 8,056
Total Current Assets 2(a) 19,755 36,346 17,125 28,478
Non-Current Assets
Other receivables 14 1,012 331 558 92
Investments 16 956 1,287 23,857 4,528
Property, plant and equipment 17 186,087 132,088 165,224 128,298
Exploration and evaluation assets 18 30,372 22,993 12,637 9,609
Total Non Current Assets 218,427 156,699 202,276 142,527
Total Assets 238,182 193,045 219,401 171,005
Current Liabilities
Trade and other payables 20 20,585 19,725 20,839 19,370
Interest bearing liabilities 21 22,271 11,719 22,271 11,719
Provisions 22 1,038 854 1,009 811
Total Current Liabilities 2(a) 43,894 32,298 44,119 31,900
Non-Current Liabilities
Payables 20 - - 1,868 -
Interest bearing liabilities 21 2,354 29,342 2,354 29,342
Deferred tax liability 19 - 186 - -
Provisions 22 8,769 6,104 7,843 5,463
Total Non-Current Liabilities 11,123 35,632 12,065 34,805
Total Liabilities 55,017 67,930 56,184 66,705
Net Assets 183,165 125,115 163,217 104,300
Equity
Issued capital 23 267,794 183,854 267,794 183,854
Reserves 23 5,634 3,531 5,397 2,975
Accumulated losses (104,362) (74,201) (109,974) (82,529)
Total Equity Attributable to 169,066 113,184 163,217 104,300
Equity
Holders of the Parent
Minority Interest 14,099 11,931 - -
Total Equity 183,165 125,115 163,217 104,300
The balance sheets are to be read in conjunction with the accompanying notes.
STATEMENTS OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2007
Attributable to equity Minority Total
holders of the parent interest equity
Issued Accum. Reserves
Capital Losses (note 23) Total
$'000 $'000 $'000 $'000 $'000 $'000
Consolidated
Opening balance at 1 July 2005 131,656 (66,678) 2,395 67,373 5,647 73,020
Impact of change in accounting
policy
(note 3a(ii)) (5,793) 5,793 - - - -
Balance as at 1 July 2005, 125,863 (60,885) 2,395 67,373 5,647 73,020
restated
Effective portion of cash flow - - (827) (827) - (827)
hedges
Net gain/(loss) on
available-for-sale
financial assets - - 100 100 236 336
Currency translation differences - - 20 20 - 20
Loss for the year - (13,316) - (13,316) 184 (13,132)
Recognised income and expense for - (13,316) (707) (14,023 420 (13,603)
the year
Issue of share capital 41,832 - - 41,832 - 41,832
Issue of shares by controlled - - - - 5,785 5,785
entity - Blina
Exercise of options 18,035 - - 18,035 - 18,035
Share transaction costs (2,856) - - (2,856) - (2,856)
Cost of share-based payments - - 2,823 2,823 79 2,902
Transfer from share-based
payments reserve 847 - (847) - - -
Transfer from option premium
reserve 133 - (133) - - -
Balance at 30 June 2006 183,854 (74,201) 3,531 113,184 11,931 125,115
Derecognition of hedge as - - 555 555 - 555
effective
Currency translation differences - - (19) (19) - (19)
Net gain/(loss) on
available-for-sale financial
assets - - (258) (258) (347) (605)
Loss for the year - (30,161) - (30,161) (1,705) (31,866)
Recognised income and expense for - (30,161) 278 (29,883) (2,052) (31,935)
the year
Issue of share capital 85,289 - - 85,289 - 85,289
Issue of shares by controlled - - - - 1,079 1,079
entity - Blina
Increase in net assets by - - - - 3,259 3,259
minority interests
Share transaction costs (1,349) - - (1,349) - (1,349)
Cost of share-based payments - - 2,641 2,641 1 2,642
Expiry of options - - (751) (751) (18) (769)
Transfer from share-based
payments reserve - - (65) (65) (101) (166)
Closing balance at 30 June 2007 267,794 (104,362) 5,634 169,066 14,099 183,165
The Company
Opening balance at 1 July 2005 125,864 (66,432) 2,189 61,621
Effective portion of cash flow - - (827) (827)
hedges
Net gain/(loss) on
available-for-sale financial
assets - - (148) (148)
Loss for the year - (16,097) - (16,097)
Recognised income and expense for - (16,097) (975) (17,072)
the year
Issue of share capital 41,832 - - 41,832
Exercise of options 18,035 - - 18,035
Share transaction costs (2,856) - - (2,856)
Cost of share-based payments - - 2,740 2,740
Transfer from share-based
payments reserve 846 - (846) -
Transfer from option premium 133 - (133) -
reserve
Balance at 30 June 2006 183,854 (82,529) 2,975 104,300
Derecognition of hedge as - - 555 555
effective
Net gain/(loss) on
available-for-sale financial
assets - - (34) (34)
Loss for the year - (27,445) - (27,445)
Recognised income and expense for - (27,445) 521 (26,924)
the year
Issue of share capital 85,289 - - 85,289
Share transaction costs (1,349) - - (1,349)
Cost of share-based payments - - 2,640 2,640
Expiry of options - - (739) (739)
Closing balance at 30 June 2007 267,794 (109,974) 5,397 163,217
The statements of changes in equity are to be read in conjunction with the
accompanying notes.
STATEMENTS OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2007
Consolidated The Company
2007 2006 2007 2006
Note $'000 $'000 $'000 $'000
Cash flows from operating activities
Cash receipts from customers 65,261 36,527 64,089 35,328
Cash paid to suppliers and employees (75,917) (46,895) (72,118) (44,735)
Cash generated from operations (10,656) (10,368) (8,029) (9,407)
Interest received 674 793 469 577
Net cash inflow/(outflow) from operating 30 (9,982) (9,575) (7,560) (8,830)
activities
Cash flows from investing activities
Proceeds from sale of property, plant and 1 53 1 53
equipment
Payments for exploration, evaluation and
development (7,261) (8,748) (3,486) (4,175)
expenditure
Receipts recovered during exploration and
evaluation
phase 431 - - -
Payments for property, plant and (46,453) (56,277) (44,579) (54,665)
equipment
Payments for deferred stripping costs (7,414) (6,264) (7,414) (6,264)
Payments for investments - - (1,025) (3,667)
Proceeds on disposal of investments 16 10,800 - 10,800 -
Net cash inflow/(outflow) from investing (49,896) (71,236) (45,703) (68,718)
activities
Cash flows from financing activities
Proceeds from issue of shares and
options:
Kimberley Diamond Company NL 63,346 59,868 63,346 59,868
Blina Diamonds NL 1,225 7,882 - -
Transaction costs from issue of shares
and options:
Kimberley Diamond Company NL (1,349) (2,856) (1,349) (2,856)
Blina Diamonds NL - (308) - -
Proceeds from borrowings 4,000 41,188 4,000 41,188
Repayment of borrowings (20,800) (4,000) (20,800) (4,000)
Loan to related entity - (1,000) - -
Interest received from related entity 37 10 - -
Payment for environmental bonds (617) - (442) -
Payments for bank guarantees (40) - - -
Finance lease payments (189) (273) (189) (273)
Interest and other costs of finance paid (4,649) (2,206) (4,649) (2,206)
Net cash inflow/(outflow) from financing 40,964 98,305 39,917 91,721
activities
Net increase/(decrease) in cash and cash (18,914) 17,494 (13,346) 14,173
equivalents
Cash and cash equivalents at the 25,538 8,044 18,629 4,456
beginning of the period
Cash and cash equivalents at the end of 13 6,624 25,538 5,283 18,629
the period
The statements of cash flows are to be read in conjunction with the
accompanying notes.
END
Kimberley Dia (LSE:KDC)
Historical Stock Chart
From Jun 2024 to Jul 2024
Kimberley Dia (LSE:KDC)
Historical Stock Chart
From Jul 2023 to Jul 2024
