TIDMLRL
RNS Number : 3251Z
Leyshon Resources Limited
14 March 2012
LEYSHON RESOURCES LIMITED
ABN 75 010 482 274
INTERIM FINANCIAL REPORT
FOR THE HALF-YEAR ENDED 31 DECEMBER 2011
CORPORATE DIRECTORY
Directors Share Register
John Fletcher - Non-Executive UK
Chairman Computershare Investor
Paul Atherley - Managing Services plc
Director 2nd Floor, Vintners
Richard Seville - Non-Executive Place
Director 68 Upper Thames Street
Andrew Berry III - Non-Executive London
Director EC4V 3BJ
United Kingdom
Company Secretary
Murray Wylie Australia
Computershare Investor
Principal and Registered Services Pty Ltd
Offices Level 2, Reserve Bank
Building
China 45 St Georges Terrace
Suite 03A, 11/F Perth WA 6000
The Beijing Exchange Australia
Tower Telephone: 1300 557
B-118 Jianguo Avenue 010
Chaoyang District International: (61
Beijing 100022 8) 9323 2000
Telephone: (86 10) 6566 Facsimile: (61 8) 9323
9977 2033
Facsimile: (86 10) 6566
9978 Solicitors
Jun He Law Offices
Australia - Beijing
Suite e, Level 3 Hardy Bowen - Australia
1292 Hay Street
West Perth WA 6005 Stock Exchange Listing
Telephone: (61 8) 9321 Alternative Investment
0077 Market
Facsimile: (61 8) 9322 London Stock Exchange
4073 10 Paternoster Square
London EC4M 7LS
Auditor
Deloitte Touche Tohmatsu Australian Stock Exchange
Home Branch - Perth
Bankers 2 The Esplanade
Bank of China - Beijing Perth WA 6000
National Australia Bank
AIM and ASX Code -
LRL
DIRECTORS' REPORT
The Board of Directors of Leyshon Resources Limited present
their report on the consolidated entity of Leyshon Resources
Limited ("the Company" or "Leyshon Resources") and its subsidiaries
during the half-year ended 31 December 2011 ("Consolidated
Entity").
DIRECTORS
The names of the Directors of Leyshon Resources in office during
the half-year and until the date of this report are:
John Fletcher
Paul C Atherley
Richard Seville
Andrew Berry
REVIEW AND RESULTS OF OPERATIONS
Operating Results
Net operating loss after tax attributable to members of the
Consolidated Entity for the half-year ended 31 December 2011 was
$3,097,761 (2010: $550,925).
Operations
Leyshon Resources Limited (AIM/ASX: LRL) (Company) is pleased to
report that during the half year it continued to review, and is
continuing to undertake due diligence on, a number of project
investment opportunities, some of which have the potential to meet
the Company's investment criteria.
The Company has completed a preliminary technical and legal due
diligence review on a PRC entity that holds an exploration licence
over a thermal coal project in the Western Chinese province of
Xinjiang. More detailed review of the technical data collated to
date has confirmed that the asset has the potential to meet the
Company's investment criteria.
The Company's main focus during the half year has been on
advancing the commercial negotiations in relation to the proposed
transaction. These discussions are ongoing.
In addition, the Company and its advisors have continued
discussions and negotiations with a large state owned enterprise on
joint venture arrangements which, in the event of a successful
completion of the transaction, would become the Company's joint
venture partner on the project.
Whilst the Company believes that the asset is attractive in that
it has the potential to meet its demanding internal investment
criteria, it can give no assurance that these due diligence
investigations, approval processes and/or discussions will lead to
the successful completion of the transaction.
Management continues to review investment proposals from many
locations around the world and it actively considers each one in
light of its competitive advantage of being located in Beijing and
able to access the Chinese end user market.
The Company remains diligent in its assessment of assets at all
times and is therefore prepared to commit significant expenditure
on due diligence and other studies before committing to a
transaction. The Company can give no assurance that these due
diligence investigations and/or discussions will successfully
conclude in an acquisition.
Auditor's Independence Declaration
Section 307C of the Corporations Act 2001 requires our auditors,
Deloitte Touche Tohmatsu, to provide the directors of Leyshon
Resources Limited with an Independence Declaration in relation to
the review of the half-year financial report. This Independence
Declaration is on page 15 and forms part of this Directors'
Report.
Signed in accordance with a resolution of the Board of Directors
made pursuant to s.306(3) of the Corporations Act 2001.
On behalf of the Directors
PAUL ATHERLEY
Director
Beijing, 13 March 2012
For further information contact:
Leyshon Resources Limited
Paul Atherley - Managing Director
Tel: +86 137 1800 1914
patherley@leyshonresources.com
Seymour Pierce
Jonathan Wright
Tel: +44 (0)207 107 8000
http://www.leyshonresources.com
DIRECTORS' DECLARATION
The directors declare that:
(a) 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; and
(b) in the directors' opinion, the attached financial
statements and notes thereto are in accordance
with the Corporations Act 2001, including compliance
with accounting standards and giving a true and
fair view of the financial position and performance
of the consolidated entity.
Signed in accordance with a resolution of the
directors made pursuant to s.303(5) of the Corporations
Act 2001.
On behalf of the Directors
PAUL ATHERLEY
Director
Beijing, 13 March 2012
CONDENSED CONSOLIDATED INCOME STATEMENT
FOR THE HALF-YEAR ENDED 31 DECEMBER 2011
Note Half-year Half-year
Ended Ended
31 Dec 2011 31 Dec 2010
$ $
Revenue 2 1,583,194 1,414,244
Exploration expenses (2,881) (11,914)
Project evaluation (835,090) (553,565)
Administration expenses (846,179) (751,633)
AIM readmission expenses - (319,054)
Foreign exchange losses (13,767) (13,730)
Mt Leyshon holding costs (2,895,410) (191,857)
Loss before tax (3,010,133) (427,509)
Income tax expense (87,628) (123,416)
------------ ------------
Loss attributable to members
of Leyshon Resources Limited (3,097,761) (550,925)
============ ============
Loss Per Share
Basic loss per share (cents
per share) (1.26) (0.25)
Diluted loss per share
(cents per share) (1.26) (0.25)
The above Condensed Consolidated Income Statement should be read
in conjunction with the accompanying notes.
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE HALF-YEAR ENDED 31 DECEMBER 2011
Note Half-year Half-year
Ended Ended
31 Dec 2011 31 Dec 2010
$ $
Loss for the period (3,097,761) (550,925)
Other comprehensive income
Exchange differences arising
on translation of foreign
operations 13,203 (18,616)
Other comprehensive income
for the period net of
tax 13,203 (18,616)
------------ ------------
Total comprehensive income
attributable to members
of
Leyshon Resources Limited (3,084,558) (569,541)
============ ============
The above Condensed Consolidated Income Statement should be read
in conjunction with the accompanying notes.
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2011
Note 31 Dec 2011 30 June
2011
$ $
ASSETS
Current Assets
Cash and cash equivalents 3 52,152,705 52,901,790
Trade and other receivables 4 544,634 743,088
Other 49,003 8,923
------------ ------------
Total Current Assets 52,746,342 53,653,801
------------ ------------
Non-Current Assets
Other financial assets
at fair value through
profit and loss 1 1
Other financial assets 14,999 14,999
Property, plant and equipment 27,870 29,177
Total Non-Current Assets 42,870 44,177
------------ ------------
TOTAL ASSETS 52,789,212 53,697,978
------------ ------------
LIABILITIES
Current Liabilities
Trade and other payables 5 878,285 183,873
Current tax liabilities 301,947 313,589
Provisions 67,896 62,890
------------ ------------
Total Current Liabilities 1,248,128 560,352
------------ ------------
Non-Current Liabilities
Trade and other payables 5 1,488,016 -
Total Non-Current Liabilities 1,488,016 -
------------ ------------
TOTAL LIABILITIES 2,736,144 560,352
------------ ------------
NET ASSETS 50,053,068 53,137,626
============ ============
EQUITY
Issued capital 71,102,376 71,102,376
Reserves (5,410) (18,613)
Accumulated losses (21,043,898) (17,946,137)
------------ ------------
TOTAL EQUITY 50,053,068 53,137,626
============ ============
The above Condensed Consolidated Statement of Financial Position
should be read in conjunction with the accompanying notes.
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE HALF-YEAR ENDED 31 DECEMBER 2011
Half-year Half-year
Ended Ended
31 Dec 31 Dec
2011 2010
$ $
Issued Capital
Issued and paid up capital -
at the beginning of the half-year 71,102,376 64,175,728
----------- ------------
Transactions with equity holders
in their capacity as equity holders:
Issue of ordinary shares - 7,000,080
Less share issue costs - (69,235)
----------- ------------
- 6,930,845
----------- ------------
Issued and paid up capital -
at the end of the half-year 71,102,376 71,106,573
=========== ============
Employee Benefit Reserve
Balance at the beginning of the
half-year - 1,373,173
Transactions with equity holders
in their capacity as equity holders:
Expiry of options - (1,220,000)
Employee benefit reserve at the
end of the half-year - 153,173
=========== ============
Foreign Exchange Reserve
Foreign exchange reserve at the
beginning of the half-year (18,613) 6,136
Exchange differences on translation
of foreign operations attributable
to members of Leyshon Resources
Limited 13,203 (18,616)
----------- ------------
Total comprehensive income for
the period 13,203 (18,616)
----------- ------------
Foreign exchange reserve at the
end of the half-year (5,410) (12,480)
=========== ============
Total reserves at the end of
the half-year (5,410) 140,693
=========== ============
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE HALF-YEAR ENDED 31 DECEMBER 2011 (CONTINUED)
Half-year Half-year
Ended Ended
31 Dec 31 Dec
2011 2010
$ $
Accumulated Losses
Accumulated losses at the beginning
of the half-year (17,946,137) (18,539,326)
Loss for the half-year attributable
to members of Leyshon Resources
Limited (3,097,761) (550,925)
------------- -------------
Total comprehensive income for
the period (3,097,761) (550,925)
------------- -------------
Transactions with equity holders
in their capacity as equity
holders:
Transfer from employee benefit
reserve - 1,220,000
Accumulated losses at the end
of the half-year (21,043,898) (17,870,251)
============= =============
The above Condensed Consolidated Statement of Changes in Equity
should be read in conjunction with the accompanying notes.
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE HALF-YEAR ENDED 31 DECEMBER 2011
Half-year Half-year
ended ended
31 Dec 2011 31 Dec 2010
$ $
CASH FLOWS FROM OPERATING
ACTIVITIES
Payments to suppliers and
employees (1,659,711) (1,390,288)
Mt Leyshon holding costs (746,427) (146,295)
Income tax paid (99,270) (66,443)
Interest received 1,760,561 1,334,593
Net cash flows used in operating
activities (744,847) (268,433)
------------
CASH FLOWS FROM INVESTING
ACTIVITIES
Acquisition of plant and
equipment (5,093) (4,023)
Net cash flows used in investing
activities (5,093) (4,023)
------------ ------------
CASH FLOWS FROM FINANCING
ACTIVITIES
Proceeds from issue of shares - 6,950,040
Net cash flows provided
by financing activities - 6,950,040
------------ ------------
NET (DECREASE) / INCREASE
IN CASH AND CASH EQUIVALENTS (749,940) 6,677,584
Cash and cash equivalents
at the beginning of the
half-year 52,901,790 46,193,725
Effects of exchange rate
changes on cash and cash
equivalents 855 (6,289)
CASH AND CASH EQUIVALENTS
AT THE END OF THE HALF-YEAR 52,152,705 52,865,020
The above Condensed Consolidated Statement of Cash Flows should
be read in conjunction with the accompanying notes.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE HALF-YEAR ENDED 31 DECEMBER 2011
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
This general purpose financial report for the interim half-year
reporting period ended 31 December 2011 has been prepared in
accordance with Accounting Standard AASB 134 Interim Financial
Reporting and the Corporations Act 2001. Compliance with AASB 134
ensures compliance with International Financial Reporting Standard
IAS 34 Interim Financial Reporting.
This interim financial report does not include all the notes of
the type normally included in an annual financial report.
Accordingly, this report is to be read in conjunction with the
annual report of Leyshon Resources Limited for the year ended 30
June 2011 and any public announcements made by Leyshon Resources
Limited and its subsidiaries during the interim reporting period in
accordance with the continuous disclosure requirements of the
Corporations Act 2001.
(a) Basis of preparation of half-year financial report
The condensed consolidated financial statements have been
prepared on the basis of historical cost, except for the
revaluation of certain non-current assets and financial
instruments. Cost is based on the fair values of the consideration
given in exchange for assets. All amounts are presented in
Australian dollars.
The accounting policies and methods of computation adopted in
the preparation of the half-year financial report are consistent
with those adopted and disclosed in the Company's 2011 annual
financial report for the year ended 30 June 2011, other than for
the impact of the adoption of new and revised Standards and
Interpretations issued by the Australian Accounting Standards Board
(AASB) that are relevant to the consolidated entity and effective
for annual reporting periods beginning on or after 1 July 2011. The
adoption of new and revised Standards and Interpretations has not
affected the amounts reported for the current or prior year.
2. REVENUE
Note Half-year Half-year
Ended Ended
31 Dec 31 Dec
2011 2010
$ $
Interest received/receivable 1,583,194 1,414,244
========= =========
31 Dec 30 June
2011 2011
$ $
3. CASH AND CASH EQUIVALENTS
Cash at bank 52,152,705 52,901,790
----------- -------------
52,152,705 52,901,790
=========== =============
4. TRADE AND OTHER RECEIVABLES
Interest Receivable 499,363 676,730
Other Debtors 45,271 66,358
-------- --------
544,634 743,088
======== ========
5. TRADE AND OTHER PAYABLES
Current
Trade Creditors 217,318 183,873
Compensation Agreements 9 660,967 -
---------- --------
878,285 183,873
========== ========
Non-Current
Compensation Agreements 9 1,488,016 -
---------- --------
1,488,016 -
========== ========
6. DIVIDENDS PAID OR PROVIDED FOR
No dividends have been paid or provided for during the
half-year.
7. SEGMENT INFORMATION
The Consolidated Entity has adopted AASB 8 Operating Segments
and AASB 2007-3 Amendments to Australian Accounting Standards
arising from AASB 8 with effect from 1 January 2009. AASB 8
requires operating segments to be identified on the basis of
internal reports about components of the Consolidated Entity that
are regularly reviewed by the chief operating decision maker in
order to allocate resources to the segment and to assess its
performance. In contrast, the predecessor Standard (AASB 114
Segment Reporting) required an entity to identify two sets of
segments (business and geographical), using a risks and rewards
approach, with the entity's 'system of internal financial reporting
to key management personnel' serving only as the starting point for
the identification of such segments. As a result, following the
adoption of AASB 8, the identification of the Consolidated Entity's
reportable segments has changed.
In previous years, segment information reported externally was
analysed on the basis of the geographical areas in which it
operated its business of exploration of gold and other minerals.
However, information reported to the Consolidated Entity's Managing
Director for the purposes of resource allocation and assessment of
performance is more specifically focused on one operating segment,
being the exploration of gold and other minerals.
As the Consolidated Entity has only one operating segment, all
the necessary reporting disclosures are disclosed elsewhere in the
notes to the financial statements.
8. SUBSEQUENT EVENTS AFTER BALANCE DATE
In January 2012 settlement was reached for the final
landholder's Compensation Agreement in relation to the Company's
Mount Leyshon assets. See Note 9 for further details.
There were no other significant events occurring after balance
date requiring disclosure in the financial statements.
9. COMMITMENTS AND CONTINGENCIES
Commitments
Operating leases
Leasing arrangements
The operating leases relate to the lease of an office in
Beijing, China and an office in Perth, Australia. The current lease
in Beijing expires 15 May 2014 and the current lease in Perth
expires 31 August 2012 The Consolidated Entity does not have an
option to acquire the leased assets at the expiry of the lease
periods.
COMMITMENTS FOR Half-year Half-year
EXPENDITURE Ended Ended
31 Dec 31 Dec
2011 2010
$ $
Non-cancellable operating
leases
Not longer than 1 year 155,973 77,114
Longer than 1 year and
not longer than 5 years 168,345 28,918
Longer than 5 years - -
---------- ----------
Total Commitments 324,318 106,032
========== ==========
Contingencies
Contingent liabilities -Mount Leyshon Assets
Details of contingent liabilities associated with the Company's
Mount Leyshon assets were disclosed in the annual financial report
for the year ended 30 June 2011. Leyshon Resources and Newmont
Australia Limited ("Newmont") have reached settlement for the
landholder Compensation Agreements. The Company will continue to be
responsible for its share of ongoing management costs in relation
to the Mount Leyshon assets.
Under the agreements Leyshon Resources is required to make
payments totalling $2.0 million to $2.5 million over the next two
years. The estimated costs have been included in the Consolidated
Income Statement at 31 December 2011 under Mt Leyshon holding
costs. Details of the net present value of the associated current
and non-current liabilities are provided in Note 5.
There has been no other material change in the contingent assets
or liabilities of the Consolidated Entity during the half-year.
10. ISSUANCES, REPURCHASES AND REPAYMENTS OF EQUITY SECURITIES
There were no movements in ordinary share capital or other
issued share capital of the Company during the current half-year
reporting period (2010: The Company issued 30,435,130 ordinary
shares at $0.23 per share for a total value before issue costs of
$7,000,080).
During the half-year reporting period, there were no movements
in options over ordinary shares (2010: 4,000,000 options over
ordinary shares expired).
DELOITTE TOUCHE TOHMATSU
ABN 74 490 121 060
Woodside Plaza
Level 14
240 St Georges Terrace
Perth WA 6000
GPO Box A46
Perth WA 6837 Australia
DX 206
Tel: +61 (0) 8 9365 7000
Fax: +61 (0) 8 9365 7001
www.deloitte.com.au
The Board of Directors
Leyshon Resources Limited
36 Outram Street
West Perth WA 6005
13 March 2012
Dear Board Members
Leyshon Resources Limited
In accordance with section 307C of the Corporations Act 2001, I
am pleased to provide the following declaration of independence to
the directors of Leyshon Resources Limited.
As lead audit partner for the review of the financial statements
of Leyshon Resources Limited for the half-year ended 31 December
2011, I declare that to the best of my knowledge and belief, there
have been no contraventions of:
(i) the auditor independence requirements of the Corporations
Act 2001 in relation to the review; and
(ii) any applicable code of professional conduct in relation to
the review.
Yours sincerely
Deloitte Touche Tohmatsu
Leanne Karamfiles
Partner
Chartered Accountants
Liability limited by a scheme approved under Professional
Standards Legislation.
Member of Deloitte Touche Tohmatsu Limited
DELOITTE TOUCHE TOHMATSU
ABN 74 490 121 060
Woodside Plaza
Level 14
240 St Georges Terrace
Perth WA 6000
GPO Box A46
Perth WA 6837 Australia
DX 206
Tel: +61 (0) 8 9365 7000
Fax: +61 (0) 8 9365 7001
www.deloitte.com.au
Independent Auditor's Review Report to the members of Leyshon
Resources Limited
We have reviewed the accompanying half-year financial report of
Leyshon Resources Limited, which comprises the condensed
consolidated statement of financial position as at 31 December
2011, the condensed consolidated statement of comprehensive income,
the condensed consolidated income statement, the condensed
consolidated statement of cash flows and the condensed consolidatd
statement of changes in equity for the half-year ended on that
date, selected explanatory notes and, the directors' declaration of
the consolidated entity comprising the company and the entities it
controlled at the end of the half-year or from time to time during
the half-year as set out on pages 2 to 14.
Directors' Responsibility for the Half-Year Financial Report
The directors of the company are responsible for the preparation
of the half-year financial report that gives a true and fair view
in accordance with Australian Accounting Standards and the
Corporations Act 2001 and for such internal control as the
directors determine is necessary to enable the preparation of the
half-year financial report that is free from material misstatement,
whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express a conclusion on the half-year
financial report based on our review. We conducted our review in
accordance with Auditing Standard on Review Engagements ASRE 2410
Review of a Financial Report Performed by the Independent Auditor
of the Entity, in order to state whether, on the basis of the
procedures described, we have become aware of any matter that makes
us believe that the halfyear financial report is not in accordance
with the Corporations Act 2001 including: giving a true and fair
view of the consolidated entity's financial position as at 31
December 2011 and its performance for the halfyear ended on that
date; and complying with Accounting Standard AASB 134 Interim
Financial Reporting and the Corporations Regulations 2001. As the
auditor of Leyshon Resources Limited, ASRE 2410 requires that we
comply with the ethical requirements relevant to the audit of the
annual financial report.
A review of a half-year financial report consists of making
enquiries, primarily of persons responsible for financial and
accounting matters, and applying analytical and other review
procedures. A review is substantially less in scope than an audit
conducted in accordance with Australian Auditing Standards and
consequently does not enable us to obtain assurance that we would
become aware of all significant matters that might be identified in
an audit. Accordingly, we do not express an audit opinion.
Auditor's Independence Declaration
In conducting our review, we have complied with the independence
requirements of the Corporations Act 2001. We confirm that the
independence declaration required by the Corporations Act 2001,
which has been given to the directors of Leyshon Resources Limited,
would be in the same terms if given to the directors as at the time
of this auditor's review report.
Conclusion
Based on our review, which is not an audit, we have not become
aware of any matter that makes us believe that the half-year
financial report of Leyshon Resources Limited is not in accordance
with the Corporations Act 2001, including:
(a) giving a true and fair view of the consolidated entity's
financial position as at 31 December 2011 and of its performance
for the half-year ended on that date; and
(b) complying with Accounting Standard AASB 134 Interim
Financial Reporting and the Corporations Regulations 2001.
DELOITTE TOUCHE TOHMATSU
Leanne Karamfiles
Partner
Chartered Accountants
Perth, 13 March 2012
Liability limited by a scheme approved under Professional
Standards Legislation.
Member of Deloitte Touche Tohmatsu Limited
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR KZLBFLXFEBBQ
Leyshon Resources (LSE:LRL)
Historical Stock Chart
From Jun 2024 to Jul 2024
Leyshon Resources (LSE:LRL)
Historical Stock Chart
From Jul 2023 to Jul 2024
