TIDMNGL
RNS Number : 5930H
Norseman Gold PLC
24 February 2010
Norseman Gold plc / Epic: NGL / Index: AIM & ASX / Sector: Mining & Exploration
24 February 2010
NORSEMAN GOLD PLC
('Norseman Gold' or 'the Company')
Interim Report for the half year ended 31 December 2009
NORSEMAN GOLD PLC
Appendix 4D ASX Listing Rule 4.2A.3
+------------------------------------+-------------+--------------+--------+
| | Unaudited | Unaudited | Change |
| | Period | Period | |
| | ended31 | ended31 | |
| | December | December | |
| | 2009 | 2008 | |
+------------------------------------+-------------+--------------+--------+
| | AUD$'000 | AUD$'000 | % |
+------------------------------------+-------------+--------------+--------+
| Group revenue from continuing | | | 11%? |
| operations | 37,946 | 42,828 | |
| | | | |
+------------------------------------+-------------+--------------+--------+
| Profit / (loss) before tax from | 680 | 897 | 24%? |
| continuing operations | | | |
+------------------------------------+-------------+--------------+--------+
| Profit / (loss) after tax | 610 | 897 | 32%? |
| attributable to members of | | | |
| Norseman Gold plc | | | |
+------------------------------------+-------------+--------------+--------+
No Dividends have been declared or paid.
+-----------------------------------+-------------+------------+
| | Unaudited | Unaudited |
| | As at31 | As at31 |
| | December | December |
| | 2009 | 2008 |
+-----------------------------------+-------------+------------+
| | Cents / | Cents / |
| | Share | Share |
+-----------------------------------+-------------+------------+
| Net tangible assets per security | $0.313 | $0.178 |
+-----------------------------------+-------------+------------+
1. Details of entities over which control has been gained or lost during the
period.
None
2. Details of individual and total dividends or distributions and dividend or
distribution payments. The details must include the date on which each dividend
or distribution is payable, and (if known) the amount per security of foreign
sourced dividend or distribution.
Not applicable - no dividends have been declared or paid
3. Details of any dividend or distribution reinvestment plans in operation and
the last date for the receipt of an election notice for participation in any
dividend or distribution reinvestment plan.
Not applicable
4. Details of associates and joint venture entities including the name of the
associate or joint venture entity and details of the reporting entity's
percentage holding in each of these entities and - where material to an
understanding of the report - aggregate share of profits (losses) of these
entities, details of contributions to net profit for each of these entities, and
with comparative figures for each of these disclosures for the previous
corresponding period.
Not applicable
NORSEMAN GOLD PLC
The interim financial results of the Group represent the results of the Norseman
Operations for the period 1 July 2009 to 31 December 2009. During this period,
the Group produced 31,881 ounces of gold at a cash cost of A$917 per ounce, and
generated a profit after tax of A$0.6 million. Production is expected to
increase steadily in the second half of the financial year.
The average gold price achieved during the six months period was A$1,277 per
ounce.
A major milestone was achieved during the half with the commencement of
development at OK Decline. The first low grade development ore has been
delivered to the surface stockpile and was treated in January 2010. This is the
first gold to be recovered from the Group's third mine under its fill-the-mill
strategy and demonstrates the Group's ability to find and develop further gold
assets within the Norseman project area. In addition, underground drilling at
the OK Decline has identified a new ore body, the Star of Erin, which the Group
expects will substantially increase the reserve of this mine.
Dewatering at North Royal Open Pit, the potential fourth mine, has commenced and
over 21% of the water volume was pumped by the end of the half. The first stage
drilling programme has been completed at the southern end of the open pit. The
results of this program are currently being analysed and it appears that a
footwall reef underneath the historically mined reef may have been intersected.
The Group is currently planning drill programmes that will further test the
footwall reef, as well as other targets to the south, with a plan to extend the
current resource base prior to the completion of pit dewatering.
Production for the first half was below the Group's target production from the
Bullen and Harlequin Declines. As a consequence the Group revised its guidance
for the 2009/10 financial year to 75,000 to 80,000 ounces recovered (previously
80,000 to 85,000 ounces of gold) at a cash cost of A$800 to A$850 per ounce
(previously A$720 to A$780 per ounce) from the Bullen, OK and Harlequin
Declines.
Although cash costs per ounce increased above targeted levels during the half,
this was a reflection of ounces produced from lower grade ore as opposed to
increasing total costs. The Group managed to keep a tight rein on costs, and
total costs were held to within budget. The Group remains focussed on the
productivity and grade of the operating mines to ensure that the improvement in
performance and profitability continues.
From a balance sheet perspective, the Group remains in a strong position, with
cash on hand (including gold bullion) of A$26.1m. In addition, the Group is
debt free aside from equipment finance funding obligations and its production
remains unhedged.
During the half, a strong balance sheet enabled the Group to spend A$17.3m on
capital investment, including A$4.8m on mine development, A$3.5m on exploration
activities, and A$9.6m on plant, equipment and mine infrastructure.
The Group will continue with its strategy to fill the mill by further advancing
its development projects particularly at North Royal and the Crown Reef where
the first surface program will commence this month. Although there will
continue to be day-to-day operating difficulties during the current growth and
development phase, the outlook for the Group for the coming year continues to be
positive. The extensive capital investment program undertaken in the last 12
months should begin to provide increasing returns through the year 2010 and in
the longer term.
Vince Pendal Barry Cahill
Chairman Managing
Director
NORSEMAN GOLD PLC
Introduction
We have been engaged by the Company to review the condensed set of financial
statements in the half-yearly financial report for the six months ended 31
December 2009 which comprises group statement of comprehensive income, group
statement of changes in equity, group balance sheet, group cash flow statement
and the related explanatory notes. We have read the other information contained
in the half-yearly financial report and considered whether it contains any
apparent misstatements or material inconsistencies with the information in the
condensed set of financial statements.
Directors' Responsibilities
The half-yearly financial report is the responsibility of, and has been approved
by, the directors. The directors are responsible for preparing the half-yearly
financial report in accordance with the AIM Rules For Companies.
As disclosed in note 1.1, the annual financial statements of the group are
prepared in accordance with IFRSs as adopted by the European Union. The
condensed set of financial statements included in this half-yearly financial
report has been prepared in accordance with International Accounting Standard
34, Interim Financial Reporting, as adopted by the European Union.
Our Responsibility
Our responsibility isto express to the Company a conclusion on the condensed set
of financial statements in the half-yearly financial report based on our review.
Scope of review
We conducted our review in accordance with International Standard on Review
Engagements (UK and Ireland) 2410, Review of Interim Financial Information
Performed by the Independent Auditor of the Entity, issued by the Auditing
Practices Board for use in the United Kingdom. A review of interim financial
information 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 International Standards on Auditing (UK and Ireland) 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.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe
that the condensed set of financial statements in the half-yearly financial
report for the six months ended 31 December 2009 is not prepared, in all
material respects, in accordance with International Accounting Standard 34 as
adopted by the European Union and the AIM Rules For Companies.
UHY Hacker Young LLP
22 February 2010
Interim Financial Information of Norseman Gold plc
The following interim financial information of Norseman Gold plc is for the
period from 1 July 2009 to 31 December 2009. The financial information was
approved by the Directors on 22 February 2010.
NORSEMAN GOLD PLC
Unaudited Unaudited
Audited
Period ended Period ended
Year ended
31 December 2009 31 December 2008 30 June 2009
AUD$ AUD$ AUD$
Continuing operations
Group revenue
37,945,819 42,827,971
96,685,085
Cost of sales
(31,359,605) (31,938,524)
(61,817,764)
__________ __________ __________
Gross profit
6,586,214 10,889,447
34,867,321
Other operating income
- -
1,213,366
Administrative expenses before depreciation and
amortisation, exploration write off and provision for
rehabilitation and charge for share-based payments (1,540,725)
(2,066,310) (3,899,635)
Exploration write off and provision for rehabilitation
- -
(2,074,993)
Depreciation and amortisation
(4,666,605) (4,627,030) (9,733,001)
Share-based payments
(111,930) (2,984,144)
(3,108,338)
Total administrative expenses
(6,319,260) (9,677,484) (18,815,967)
__________ __________ __________
Group operating profit
266,954 1,211,963
17,264,720
Gain on purchase of convertible notes
- -
5,000,000
Interest receivable
413,526 251,807
520,563
Interest payable
(8) (566,317)
(575,418)
__________ __________ __________
Profit before taxation
680,472 897,453
22,209,865
Taxation
(70,942) -
(1,850,856)
__________ __________ __________
Profit for the period
609,530 897,453
20,359,009
========= ========= =========
Other comprehensive income609,530 897,453
20,359,009
Exchange differences on translating foreign
operations
- 54,51954,519
__________ __________ __________
Total comprehensive income for the period
attributable to equity holders of the Company609,530
951,972 20,413,528
========= =========
=========
Profit per share (cents)
Basic and diluted
0.4 1.1
19.7
========= =========
=========
NORSEMAN GOLD PLC
Foreign
Share Share Currency Equity Retained
Total
Capital Premium Reserve Reserve Losses
Equity
AUD$ AUD$ AUD$ AUD$ AUD$
AUD$
+----------------+-----------+------------+---------+-----------+--------------+------------+
| Unaudited Period ended 31 December 2009 |
+-------------------------------------------------------------------------------------------+
| | | | | | | |
+----------------+-----------+------------+---------+-----------+--------------+------------+
| Balance at 1 | 4,889,123 | 86,864,874 | 518,742 | 1,109,015 | (25,391,918) | 67,989,836 |
| July 2009 | | | | | | |
+----------------+-----------+------------+---------+-----------+--------------+------------+
| | | | | | | |
+----------------+-----------+------------+---------+-----------+--------------+------------+
| Net profit for | - | - | - | - | 609,530 | 609,530 |
| the period | | | | | | |
+----------------+-----------+------------+---------+-----------+--------------+------------+
| Total | - | - | - | - | 609,530 | 609,530 |
| comprehensive | | | | | | |
| income for the | | | | | | |
| period | | | | | | |
+----------------+-----------+------------+---------+-----------+--------------+------------+
| Share issues | 14,612 | 352,516 | - | - | - | 367,128 |
+----------------+-----------+------------+---------+-----------+--------------+------------+
| Share based | - | - | - | 111,930 | - | 111,930 |
| payments | | | | | | |
+----------------+-----------+------------+---------+-----------+--------------+------------+
| Transfer of | - | - | - | (128,178) | 128,178 | - |
| equity reserve | | | | | | |
| to Retained | | | | | | |
| profit reserve | | | | | | |
| on exercise of | | | | | | |
| share options | | | | | | |
+----------------+-----------+------------+---------+-----------+--------------+------------+
| Balance at 31 | 4,903,735 | 87,217,390 | 518,742 | 1,092,767 | (24,654,210) | 69,078,424 |
| December 2009 | | | | | | |
+----------------+-----------+------------+---------+-----------+--------------+------------+
+----------------+-----------+------------+---------+------------+---------------+------------+
| Unaudited Period ended 31 December 2008 |
+---------------------------------------------------------------------------------------------+
| | | | | | | |
+----------------+-----------+------------+---------+------------+---------------+------------+
| Balance at 1 | 2,446,963 | 67,848,356 | 454,019 | 4,379,376 | (49,714,697) | 25,414,017 |
| July 2008 | | | | | | |
+----------------+-----------+------------+---------+------------+---------------+------------+
| | | | | | | |
+----------------+-----------+------------+---------+------------+---------------+------------+
| Net profit for | - | - | - | - | 897,453 | 897,453 |
| the period | | | | | | |
+----------------+-----------+------------+---------+------------+---------------+------------+
| Other | | | | | | |
| comprehensive | | | | | | |
| income: | | | | | | |
+----------------+-----------+------------+---------+------------+---------------+------------+
| Foreign | - | - | 54,519 | - | - | 54,519 |
| currency | | | | | | |
+----------------+-----------+------------+---------+------------+---------------+------------+
| Total | - | - | 54,519 | - | 897,453 | 951,972 |
| comprehensive | | | | | | |
| income for the | | | | | | |
| period | | | | | | |
+----------------+-----------+------------+---------+------------+---------------+------------+
| Share based | - | - | - | 2,984,144 | - | 2,984,144 |
| payments | | | | | | |
+----------------+-----------+------------+---------+------------+---------------+------------+
| Balance at 31 | 2,446,963 | 67,848,356 | 508,538 | 7,363,520 | (48,817,244) | 29,350,133 |
| December 2008 | | | | | | |
+----------------+-----------+------------+---------+------------+---------------+------------+
+-----------------+-----------+------------+---------+-------------+---------------+------------+
| Audited Year ended 30 June 2009 |
+-----------------------------------------------------------------------------------------------+
| | | | | | | |
+-----------------+-----------+------------+---------+-------------+---------------+------------+
| Balance at 1 | 2,446,963 | 67,848,356 | 454,019 | 4,379,376 | (49,714,697) | 25,414,017 |
| July 2008 | | | | | | |
+-----------------+-----------+------------+---------+-------------+---------------+------------+
| | | | | | | |
+-----------------+-----------+------------+---------+-------------+---------------+------------+
| Net profit for | - | - | - | - | 20,359,009 | 20,359,009 |
| the period | | | | | | |
+-----------------+-----------+------------+---------+-------------+---------------+------------+
| Other | | | | | | |
| comprehensive | | | | | | |
| income: | | | | | | |
+-----------------+-----------+------------+---------+-------------+---------------+------------+
| Foreign | - | - | 64,723 | (10,204) | - | 54,519 |
| currency | | | | | | |
+-----------------+-----------+------------+---------+-------------+---------------+------------+
| Total | - | - | 64,723 | (10,204) | 20,359,009 | 20,413,528 |
| comprehensive | | | | | | |
| income for the | | | | | | |
| period | | | | | | |
+-----------------+-----------+------------+---------+-------------+---------------+------------+
| Share issues | 2,292,160 | 17,126,518 | - | - | - | 19,418,678 |
+-----------------+-----------+------------+---------+-------------+---------------+------------+
| Excess of share | - | - | - | (3,963,770) | 3,963,770 | - |
| based | | | | | | |
| payment charge | | | | | | |
| over | | | | | | |
| market value of | | | | | | |
| Management | | | | | | |
| Shares | | | | | | |
+-----------------+-----------+------------+---------+-------------+---------------+------------+
| Conversion of | 150,000 | 1,890,000 | - | (2,040,000) | - | - |
| Management | | | | | | |
| equity in | | | | | | |
| Capital | | | | | | |
+-----------------+-----------+------------+---------+-------------+---------------+------------+
| Share based | - | - | - | 3,108,338 | - | 3,108,338 |
| payments | | | | | | |
+-----------------+-----------+------------+---------+-------------+---------------+------------+
| Unwinding | - | - | - | (364,725) | - | (364,725) |
| equity | | | | | | |
| component | | | | | | |
| of convertible | | | | | | |
| notes | | | | | | |
+-----------------+-----------+------------+---------+-------------+---------------+------------+
| Balance at 30 | 4,889,123 | 86,864,874 | 518,742 | 1,109,015 | (25,391,918) | 67,989,836 |
| June 2009 | | | | | | |
+-----------------+-----------+------------+---------+-------------+---------------+------------+
NORSEMAN GOLD PLC
GROUP BALANCE SHEET
Unaudited Unaudited
Audited
As at As at
As at
31 December 31 December
30 June
2009 2008
2009
Notes AUD$ AUD$
AUD$
ASSETS
Non-Current Assets
Property, plant & equipment 4
23,884,035 15,853,888 16,950,490
Mine properties in production phase 5
17,995,619 12,639,154 15,184,249
Exploration & evaluation expenditure 6
12,721,462 7,970,065
9,190,868
Goodwill
7 15,000,000 15,000,000
15,000,000
Deferred tax asset
6,754,979 -
5,863,444
__________ __________ __________
76,356,095 51,463,107
62,189,051
__________ __________ __________
Current Assets
Trade and other receivables
2,315,948 3,673,827
1,343,743
Inventories 8
6,736,672 7,038,142
6,101,395
Financial assets available for sale
- 18,560
-
Cash at bank and in hand 9
23,136,466 6,665,703
32,617,947
__________ __________ __________
32,189,086 17,396,232
40,063,085
__________ __________ __________
Total Assets
108,545,181 68,859,339
102,252,136
__________ __________ __________
LIABILITIES
Current Liabilities
Trade and other payables 10
12,749,268 9,656,042
13,839,830
Provisions
11 2,655,388 2,041,425
2,256,613
Convertible Notes 12
- 4,620,000
-
Interest-bearing loans and borrowings 13
5,650,472 4,092,748 3,712,343
__________ __________ __________
21,055,128 20,410,215
19,808,786
__________ __________ __________
Non-Current Liabilities
Provisions
11 6,496,234 5,424,148
6,418,409
Convertible Notes 12
- 10,015,275
-
Interest-bearing loans and borrowings 13
6,143,312 3,659,568 3,225,499
Deferred tax liability
5,772,083 -
4,809,606
__________ __________ __________
18,411,629 19,098,991
14,453,514
__________ __________ __________
Total Liabilities
39,466,757 39,509,206
34,262,300
__________ __________ __________
Net Assets
69,078,424 29,350,133
67,989,836
========= ========= =========
EQUITY
Capital and Reserves
Share capital
14 4,903,735 2,446,963
4,889,123
Share premium account
87,217,390 67,848,356
86,864,874
Foreign currency reserve 15
518,742 508,538
518,742
Equity reserve 15
1,092,767 7,363,520
1,109,015
Retained losses
(24,654,210) (48,817,244)
(25,391,918)
__________ __________ __________
Shareholders' Equity
69,078,424 29,350,133
67,989,836
========= ========= =========
NORSEMAN GOLD PLC
GROUP CASH FLOW STATEMENT
Unaudited Unaudited
Audited
Period ended Period ended
Year ended
31 December 31 December
30 June
2009 2008
2009
Notes AUD$ AUD$
AUD$
Net cash inflow from operating activities 18
7,621,716 5,784,425 33,203,243
__________ __________ __________
Investing activities
Funds used in mine properties
(4,764,303) (2,672,374) (7,088,108)
Funds used in exploration & production
(3,530,594) (2,767,524) (5,032,457)
Payments to purchase plant and equipment (9,588,946)
(1,992,446) (4,988,046)
Proceeds from sale of financial assets available for sale
- 7,040 38,400
Interest received
413,526 251,807
520,563
Interest payable
(8) (566,317)
(575,418)
__________ __________ __________
Net cash used in investing activities
(17,470,325) (7,739,814) (17,125,066)
__________ __________ __________
Financing activities
Cash proceeds from issue of shares
367,128 -
19,937,500
Share issue costs
- -
(1,018,822)
Loans from directors
- 1,500,000
1,500,000
Repayment of loans from directors
- -
(1,000,000)
Purchase and cancellation of convertible notes
- -
(10,000,000)
__________ __________ __________
Net cash from financing activities
367,128 1,500,000 9,418,678
__________ __________ __________
Increase (decrease) in cash and cash equivalents (9,481,481)
(455,389) 25,496,855
Cash and cash equivalents at beginning of period 32,617,947
7,121,092 7,121,092
__________ __________ __________
Cash and cash equivalents at end of period
23,136,466 6,665,703 32,617,947
========= ========= =========
NORSEMAN GOLD PLC
NOTES TO THE FINANCIAL INFORMATION
FOR THE PERIOD ENDED 31 DECEMBER 2009
1. Accounting policies
The principal accounting policies applied in the preparation of financial
information are set out below. These policies have been consistently applied to
all the periods presented, unless otherwise stated below.
1.1 Basis of preparation
This interim report, which incorporates the financial information of the Company
and its subsidiary undertakings ("the Group"), has been prepared using the
historical cost convention and in accordance with the International Financial
Reporting Standards ("IFRS") including IAS 34 'Interim Financial Reporting' and
IFRS 6 'Exploration for and Evaluation of Mineral Resources', as adopted by the
European Union ("EU").
These interim results for the six months ended 31 December 2009 are unaudited
and do not constitute statutory accounts as defined in section 434 of the
Companies Act 2006. They have been prepared using accounting bases and policies
consistent with those used in the preparation of the financial statements of the
Company and the Group for the year ended 30 June 2009 and those to be used for
the year ending 30 June 2010. The financial statements for the year ended 30
June 2009 have been delivered to the Registrar of Companies and the auditors'
report on those financial statements was unqualified and did not contain a
statement made under Section 498(2) or Section 498(3) of the Companies Act 2006.
1.2 New standards and amendments
The following amendments to standards are mandatory for the first time for the
financial periods commencing on or after 1 January 2009:
IAS1 (revised) 'Presentation of financial statements' includes the requirement
to present a Statement of Changes in Equity as a primary statement and
introduces the possibility of either a single Statement of Comprehensive Income
(combining the Income Statement and a Statement of Comprehensive Income) or to
retain the Income Statement with a supplementary Statement of Comprehensive
Income. The Directors have chosen the first option. As this standard is
concerned with presentation only it does not have any impact on the results or
net assets of the Group.
IFRS8 'Operating segments'. IFRS8 replaces IAS 14 'Segment reporting'. It
requires a 'management approach' under which segment information is presented on
the same basis as that used for internal reporting purposes. Following a review
of the Group's internal management information, the Group maintains that it only
has one class of business, the production, exploration and development of
mineral resources and that primary segmental reporting is determined by
geography according to the location of assets.
Operating segments are reported in a manner consistent with the internal
reporting provided to the chief operating decision maker. The chief operating
decision maker has been identified as the Board of Directors.
1.3 Goodwill
Goodwill is the difference between the amount paid on the
acquisition of the subsidiary undertakings and the aggregate fair value of their
separable net assets. Goodwill is capitalised as an intangible asset and in
accordance with IFRS3 'Business Combinations' is not amortised but tested for
impairment when there are any indications that its carrying value is not
recoverable. As such, goodwill is stated at cost less any provision for
impairment in value. If a subsidiary undertaking is subsequently sold, goodwill
arising on acquisition is taken into account in determining the profit and loss
on sale.
1.4 Mine properties in production phase
Exploration and evaluation expenditure
Exploration, evaluation and development expenditure incurred is
accumulated in respect of each identifiable area of interest. These costs are
only carried forward to the extent that they are expected to be recouped through
the successful development of the area or where activities in the area have not
yet reached a stage which permits reasonable assessment of the existence of
economically recoverable reserves. Accumulated costs in relation to an abandoned
area are written off in full against profit in the year in which the decision to
NOTES TO THE FINANCIAL INFORMATION
FOR THE PERIOD ENDED 31 DECEMBER 2009
1.4 Mine properties in production phase
Exploration and evaluation expenditure (continued)
abandon the area is made. When production commences, the accumulated costs for
the relevant area of interest are amortised over the life of the area according
to the rate of depletion of the economically recoverable reserves. Economically
recoverable reserves are determined by the following: for open pit operations -
proven and probable reserves; and for underground operations - proven and
probable reserves and reasonably assured potential additional reserves.
Accumulated costs associated with underground operations include an estimate of
the future costs associated with the conversion of 'indicated' and 'inferred'
resources into the 'measured category'. This estimate is based on the historical
cost per ounce discovered. A regular review is undertaken of each area of
interest to determine the appropriateness of continuing to carry forward costs
in relation to that area of interest.
Costs of site restoration are provided when an obligating event occurs from when
exploration commences and are included in the costs of that stage. Site
restoration costs include the dismantling and removal of mining plant, equipment
and building structures, waste removal and rehabilitation of the site in
accordance with clauses of the mining permits. Such costs have been determined
using estimates of future costs, current legal requirements and technology on a
discounted basis. Any changes in the estimates for the costs are accounted for
on a prospective basis. In determining the costs of site restoration, there is
uncertainty regarding the nature and extent of the restoration due to community
expectations and future legislation. Accordingly the costs have been determined
on the basis that the restoration will be completed within one year of
abandoning the site.
1.5 Inventories
(i) Raw Materials and Stores
Inventories of raw materials and stores expected to be used in production are
valued at average cost. Obsolete or damaged inventories of such items are valued
at net realisable value. There is a regular and ongoing review of inventories
for surplus items and provision is made for any anticipated loss on their
disposal.
(ii) Work in Progress and Gold in Circuit
Inventories of broken ore, work in progress and gold in circuit are valued at
the lower of cost and net realisable value. Cost comprises direct material,
labour and transportation expenditure incurred in getting inventories to their
existing location and condition, together with an appropriate portion of fixed
and variable overhead expenditure based on weighted average costs incurred
during the period in which such inventories were produced. Net realisable value
is the amount anticipated to be realised from the sale of inventory in the
normal course of business less any anticipated costs to be incurred prior to its
sale.
1.6 Revenue
Revenue from the sale of goods (precious metals) is recognised upon production.
Interest revenue is recognised on a proportional basis taking into account the
interest rates applicable to the financial assets.
1.7 Share based payments
The Company made share-based payments to certain Directors and advisers by way
of issue of share options. The fair value of these payments is calculated by the
Company using the Black-Scholes option pricing model. The expense is recognised
on a straight line basis over the period from the date of award to the date of
vesting, based on the Company's best estimate of shares that will eventually
vest.
The Company has issued shares to management which will vest in one and two years
following readmission, provided certain requirements are met. The Company
records an expense, based upon the market price at date of issue of shares
expected to vest, on a straight line basis over the vesting period.
NOTES TO THE FINANCIAL INFORMATION
FOR THE PERIOD ENDED 31 DECEMBER 2009
1.8 Foreign currency transactions and balances
(i) Functional and presentational currency
Items included in the Group's financial information and statements are measured
using Australian Dollars ("AUD$"), which is the currency of the primary economic
environment in which the Group operates ("the functional currency"). The
financial information and statements are also presented in AUD$ which is the
Group's presentation currency.
(ii) Transactions and balances
Foreign currency transactions are translated into the functional currency using
the exchange rates prevailing at the dates of the transactions. Foreign exchange
gains and losses resulting from the settlement of such transactions and from the
translation at year end exchange rates of monetary assets and liabilities
denominated in foreign currencies are recognised in the income statement.
Transactions in the accounts of individual Group companies are recorded at the
rate of exchange ruling on the date of the transaction. Monetary assets and
liabilities denominated in foreign currencies are translated at the rates ruling
at the balance sheet date. All differences are taken to the income statement.
For the purpose of presenting consolidated financial information and 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. Exchange
differences arising are classified as equity and transferred to the Group's
translation reserve. Such translation differences are recognised as income or as
expenses in the period in which the operation is disposed of.
1.9 Capital management
The Group's objective when managing capital is to ensure that adequate funding
and resources are obtained to enable it to develop its projects through to
profitable production, while in the meantime safeguarding the Group's ability to
continue as a going concern. This is aimed at enabling it, once the projects
come to fruition, to provide appropriate returns for shareholders and benefits
for other stakeholders. The Group manages the capital structure in the light of
changes in economic conditions and risk characteristics of the underlying
projects. Conditions attached to borrowings are monitored regularly in the light
of management accounts. Capital will continue to be sourced from equity and from
borrowings as appropriate. During the period to 31 December 2009 no debt
covenants have been breached.
1.10 Leases
The determination of whether an arrangement is or contains a lease is based on
the substance of the arrangement and requires an assessment of whether the
fulfilment of the arrangement is dependent on the use of a specific asset or
assets and the arrangement conveys a right to use the asset.
(i) Group as a lessee
Finance leases, which transfer to the Group substantially all the risks and
benefits incidental to ownership of the leased item, are capitalised at the
inception of the lease at the fair value of the leased asset or, if lower, at
the present value of the minimum lease payments. Lease payments are apportioned
between the finance charges and reduction of the lease liability so as to
achieve a constant rate of interest on the remaining balance of the liability.
Finance charges are recognised as an expense in profit or loss.
Capitalised leased assets are depreciated over the shorter of the estimated
useful life of the asset and the lease term if there is no reasonable certainty
that the Group will obtain ownership by the end of the lease term.
Operating lease payments are recognised as an expense in the income statement on
a straight-line basis over the lease term. Operating lease incentives are
recognised as a liability when received and subsequently reduced by allocating
lease payments between rental expense and reduction of the liability.
(ii) Group as a lessor
Leases in which the Group retains substantially all the risks
and benefits of ownership of the leased asset are classified as operating
leases. Initial direct costs incurred in negotiating an operating lease are
added to the carrying amount of the leased asset and recognised as an expense
over the lease term on the same basis as rental income.
NOTES TO THE FINANCIAL INFORMATION
FOR THE PERIOD ENDED 31 DECEMBER 2009
1.11 Critical accounting judgements and estimates
The preparation of financial information and statements in conformity with
International Financial Reporting Standards requires the use of accounting
estimates and assumptions that affect the reported amounts of assets and
liabilities at the date of the financial information and statements and the
reported amounts of income and expenses during the reporting period. Although
these estimates are based on management's best knowledge of current events and
actions, actual results ultimately may differ from those estimates. IFRSs also
require management to exercise its judgement in the process of applying the
Group's accounting policies.
The areas involving a higher degree of judgement or complexity, or areas where
assumptions and estimates are significant to the financial information and
statements are as follows:
Impairment of intangible assets
Determining whether an intangible asset is impaired requires an estimation of
whether there are any indications that its carrying value is not recoverable.
At each reporting date, the company reviews the carrying value of its tangible
and intangible assets to determine whether there is any indication that those
assets have been impaired. If such an indication exists, the recoverable amount
of the asset, being the higher of the asset's fair value less costs to sell and
value in use, is compared to the asset's carrying value. Any excess of the
asset's carrying value over its recoverable amount is expensed to the income
statement.
Valuation of goodwill and investments
Management value goodwill and investments after taking into account ore
reserves, and cash-flow generated by estimated future production, sales and
costs. If the assumed factors vary from actual occurrence, this will impact on
the amount of the asset which should be carried on the balance sheet.
Provision of restoration costs
Provisions for restoration are established in the consolidated balance sheet
when the obligating event occurs. Such costs have been determined using
estimates of future costs, current legal requirements and technology on a
discounted basis. In determining the costs of site restoration, there is
uncertainty regarding the nature and extent of the restoration due to community
expectations and future legislation.
Exploration and Development
Exploration and development costs are amortised over the life of the area
according to the rate of depletion of the economically recoverable reserves. If
the amount of economically proven reserves varies, this will impact on the
amount of the asset which should be carried on the balance sheet.
Share based payments
The Group records charges for share based payments.
For option based share based payments management estimate certain factors used
in the option pricing model, including volatility, exercise date of options and
number of options likely to be exercised. If these estimates vary from actual
occurrence, this will impact on the value of the equity carried in the reserves.
For conditional grants of shares at a discount management estimate the expected
actual issuance of those shares. If this estimate varies from actual occurrence
this will impact on the value of the equity carried in the reserves.
2. Profit / (Loss) per share
The basic profit per ordinary share has been calculated using the profit for the
period of AUD$609,531 (31 December 2008: AUD$897,453, 30 June 2009:
AUD$20,359,009) and the weighted average number of ordinary shares in issue of
172,157,717 (31 December 2008: 80,690,000, 30 June 2009: 103,603,178).
The diluted profit per share has been calculated using a weighted average number
of shares in issue and to be issued of 172,157,717 (31 December 2008:
80,690,000, 30 June 2009: 103,603,178). The diluted profit per share has been
kept the same as the basic profit per share as the Company's 3,200,000 (31
December 2008 and 30 June 2009: 3,860,000) outstanding share options are
exercisable at a price greater than the average market price of the Company's
Ordinary Shares in the period, thus being anti-dilutive.
NOTES TO THE FINANCIAL INFORMATION
FOR THE PERIOD ENDED 31 DECEMBER 2009
3. Segmental reporting
For the purposes of segmental information, the operations of the Group are
focused on Australia and comprise one class of business: the production,
exploration, evaluation and development of mineral resources.
The Company acts as a holding company.
The Group's operating profit for the period arose from its operations in
Australia. In addition, all the Group's assets are based in Australia.
4. Property, plant & equipment
Unaudited
31 December 2009
+----------------+-----------+----------+-------------+----------+----------------+----------+-----------+----------+--------------+
| | Land | | Plant | | Mine | | | | Total |
| | and | | and | | Infrastructure | | | | |
| | Buildings | | Equipment | | and Mobile | | Capital | | |
| | | | | | Equipment | | Works | | |
| | | | | | | | in | | |
| | | | | | | | Progress | | |
+----------------+-----------+----------+-------------+----------+----------------+----------+-----------+----------+--------------+
| | AUD$ | | AUD$ | | AUD$ | | AUD$ | | AUD$ |
+----------------+-----------+----------+-------------+----------+----------------+----------+-----------+----------+--------------+
| Cost | | | | | | | | | |
+----------------+-----------+----------+-------------+----------+----------------+----------+-----------+----------+--------------+
| At 1 July 2009 | 388,084 | | 6,148,158 | | 16,697,706 | | 1,062,502 | | 24,296,450 |
+----------------+-----------+----------+-------------+----------+----------------+----------+-----------+----------+--------------+
| Additions | - | | 313,193 | | 7,316,475 | | 2,122,909 | | 9,752,577 |
+----------------+-----------+----------+-------------+----------+----------------+----------+-----------+----------+--------------+
| Transfers | - | | - | | - | | - | | - |
+----------------+-----------+----------+-------------+----------+----------------+----------+-----------+----------+--------------+
| Disposals | - | | - | | (163,633) | | - | | (163,633) |
+----------------+-----------+----------+-------------+----------+----------------+----------+-----------+----------+--------------+
| At 31 December | 388,084 | | 6,461,351 | | 23,850,548 | | 3,185,411 | | 33,885,394 |
| 2009 | | | | | | | | | |
+----------------+-----------+----------+-------------+----------+----------------+----------+-----------+----------+--------------+
| | | | | | | | | | |
+----------------+-----------+----------+-------------+----------+----------------+----------+-----------+----------+--------------+
| Depreciation | | | | | | | | | |
+----------------+-----------+----------+-------------+----------+----------------+----------+-----------+----------+--------------+
| At 1 July 2009 | (200,366) | | (1,936,846) | | (5,208,748) | | - | | (7,345,960) |
+----------------+-----------+----------+-------------+----------+----------------+----------+-----------+----------+--------------+
| Charge for | (26,776) | | (680,339) | | (2,098,804) | | - | | (2,805,919) |
| period | | | | | | | | | |
+----------------+-----------+----------+-------------+----------+----------------+----------+-----------+----------+--------------+
| Depreciation | - | | - | | 150,520 | | - | | 150,520 |
| on disposals | | | | | | | | | |
+----------------+-----------+----------+-------------+----------+----------------+----------+-----------+----------+--------------+
| At 31 December | (227,142) | | (2,617,185) | | (7,157,032) | | - | | (10,001,359) |
| 2009 | | | | | | | | | |
+----------------+-----------+----------+-------------+----------+----------------+----------+-----------+----------+--------------+
| | | | | | | | | | |
+----------------+-----------+----------+-------------+----------+----------------+----------+-----------+----------+--------------+
| Net book value | | | | | | | | | |
+----------------+-----------+----------+-------------+----------+----------------+----------+-----------+----------+--------------+
| 31 December | 160,942 | | 3,844,166 | | 16,693,516 | | 3,185,411 | | 23,884,035 |
| 2009 | | | | | | | | | |
+----------------+-----------+----------+-------------+----------+----------------+----------+-----------+----------+--------------+
| | | | | | | | | | |
+----------------+-----------+----------+-------------+----------+----------------+----------+-----------+----------+--------------+
NOTES TO THE FINANCIAL INFORMATION
FOR THE PERIOD ENDED 31 DECEMBER 2009
4. Property, plant & equipment (continued)
Unaudited
31 December 2008
+----------------+-----------+----------+-------------+----------+----------------+----------+-------------+----------+-------------+
| | Land | | Plant | | Mine | | | | Total |
| | and | | and | | Infrastructure | | | | |
| | Buildings | | Equipment | | and Mobile | | Capital | | |
| | | | | | Equipment | | Works | | |
| | | | | | | | in | | |
| | | | | | | | Progress | | |
+----------------+-----------+----------+-------------+----------+----------------+----------+-------------+----------+-------------+
| | AUD$ | | AUD$ | | AUD$ | | AUD$ | | AUD$ |
+----------------+-----------+----------+-------------+----------+----------------+----------+-------------+----------+-------------+
| Cost | | | | | | | | | |
+----------------+-----------+----------+-------------+----------+----------------+----------+-------------+----------+-------------+
| At 1 July 2008 | 388,084 | | 3,726,078 | | 11,828,856 | | 3,365,384 | | 19,308,402 |
+----------------+-----------+----------+-------------+----------+----------------+----------+-------------+----------+-------------+
| Additions | - | | 968,282 | | 971,513 | | - | | 1,939,795 |
+----------------+-----------+----------+-------------+----------+----------------+----------+-------------+----------+-------------+
| Transfers | - | | - | | 1,498,347 | | (1,498,347) | | - |
+----------------+-----------+----------+-------------+----------+----------------+----------+-------------+----------+-------------+
| Disposals | - | | - | | - | | - | | - |
+----------------+-----------+----------+-------------+----------+----------------+----------+-------------+----------+-------------+
| At 31 December | 388,084 | | 4,694,360 | | 14,298,716 | | 1,867,037 | | 21,248,197 |
| 2008 | | | | | | | | | |
+----------------+-----------+----------+-------------+----------+----------------+----------+-------------+----------+-------------+
| | | | | | | | | | |
+----------------+-----------+----------+-------------+----------+----------------+----------+-------------+----------+-------------+
| Depreciation | | | | | | | | | |
+----------------+-----------+----------+-------------+----------+----------------+----------+-------------+----------+-------------+
| At 1 July 2008 | (132,412) | | (909,369) | | (2,376,321) | | - | | (3,418,102) |
+----------------+-----------+----------+-------------+----------+----------------+----------+-------------+----------+-------------+
| Charge for | (37,798) | | (501,113) | | (1,437,296) | | - | | (1,976,207) |
| period | | | | | | | | | |
+----------------+-----------+----------+-------------+----------+----------------+----------+-------------+----------+-------------+
| Depreciation | - | | - | | - | | - | | - |
| on disposals | | | | | | | | | |
+----------------+-----------+----------+-------------+----------+----------------+----------+-------------+----------+-------------+
| At 31 December | (170,210) | | (1,410,482) | | (3,813,617) | | - | | (5,394,309) |
| 2008 | | | | | | | | | |
+----------------+-----------+----------+-------------+----------+----------------+----------+-------------+----------+-------------+
| | | | | | | | | | |
+----------------+-----------+----------+-------------+----------+----------------+----------+-------------+----------+-------------+
| Net book value | | | | | | | | | |
+----------------+-----------+----------+-------------+----------+----------------+----------+-------------+----------+-------------+
| 31 December | 217,874 | | 3,283,878 | | 10,485,099 | | 1,867,037 | | 15,853,888 |
| 2008 | | | | | | | | | |
+----------------+-----------+----------+-------------+----------+----------------+----------+-------------+----------+-------------+
Audited
30 June 2009
+----------------+-----------+----------+-------------+----------+----------------+----------+-------------+----------+-------------+
| | Land | | Plant | | Mine | | | | Total |
| | and | | and | | Infrastructure | | Capital | | |
| | Buildings | | Equipment | | and Mobile | | Works | | |
| | | | | | Equipment | | in | | |
| | | | | | | | Progress | | |
+----------------+-----------+----------+-------------+----------+----------------+----------+-------------+----------+-------------+
| | AUD$ | | AUD$ | | AUD$ | | AUD$ | | AUD$ |
+----------------+-----------+----------+-------------+----------+----------------+----------+-------------+----------+-------------+
| Cost | | | | | | | | | |
+----------------+-----------+----------+-------------+----------+----------------+----------+-------------+----------+-------------+
| At 1 July 2008 | 388,084 | | 3,726,078 | | 11,828,856 | | 3,365,384 | | 19,308,402 |
+----------------+-----------+----------+-------------+----------+----------------+----------+-------------+----------+-------------+
| Additions | - | | 2,422,080 | | 5,367,870 | | - | | 7,789,950 |
+----------------+-----------+----------+-------------+----------+----------------+----------+-------------+----------+-------------+
| Disposals | - | | - | | (499,020) | | (2,302,882) | | (2,801,902) |
+----------------+-----------+----------+-------------+----------+----------------+----------+-------------+----------+-------------+
| At 30 June | 388,084 | | 6,148,158 | | 16,697,706 | | 1,062,502 | | 24,296,450 |
| 2009 | | | | | | | | | |
+----------------+-----------+----------+-------------+----------+----------------+----------+-------------+----------+-------------+
| | | | | | | | | | |
+----------------+-----------+----------+-------------+----------+----------------+----------+-------------+----------+-------------+
| Depreciation | | | | | | | | | |
+----------------+-----------+----------+-------------+----------+----------------+----------+-------------+----------+-------------+
| At 1 July 2008 | (132,412) | | (909,369) | | (2,376,321) | | - | | (3,418,102) |
| | | | | | | | | | |
+----------------+-----------+----------+-------------+----------+----------------+----------+-------------+----------+-------------+
| Charge for | (67,954) | | (1,027,477) | | (3,216,790) | | - | | (4,312,221) |
| year | | | | | | | | | |
+----------------+-----------+----------+-------------+----------+----------------+----------+-------------+----------+-------------+
| Depreciation | - | | - | | 384,363 | | - | | 384,363 |
| on disposals | | | | | | | | | |
+----------------+-----------+----------+-------------+----------+----------------+----------+-------------+----------+-------------+
| At 30 June | (200,366) | | (1,936,846) | | (5,208,748) | | - | | (7,345,960) |
| 2009 | | | | | | | | | |
+----------------+-----------+----------+-------------+----------+----------------+----------+-------------+----------+-------------+
| | | | | | | | | | |
+----------------+-----------+----------+-------------+----------+----------------+----------+-------------+----------+-------------+
| Net book value | | | | | | | | | |
+----------------+-----------+----------+-------------+----------+----------------+----------+-------------+----------+-------------+
| 30 June 2009 | 187,718 | | 4,211,312 | | 11,488,958 | | 1,062,502 | | 16,950,490 |
+----------------+-----------+----------+-------------+----------+----------------+----------+-------------+----------+-------------+
Plant and equipment pledged as security for liabilities
Included in mobile equipment is $17,890,037 (30 June 2009: $9,942,926, 31
December 2008: $7,958,091) which has been pledged as security for the related
finance lease liabilities in current and non-current liabilities as disclosed in
Note 13.
NOTES TO THE FINANCIAL INFORMATION
FOR THE PERIOD ENDED 31 DECEMBER 2009
5. Mine properties in production phase
+-----------------------------+-------------+----------+-------------+----------+-------------+
| | Unaudited | | Unaudited | | Audited |
| | 31 | | 31 | | 30 June |
| | December | | December | | 2009 |
| | 2009 | | 2008 | | AUD$ |
| | AUD$ | | AUD$ | | |
+-----------------------------+-------------+----------+-------------+----------+-------------+
| | | | | | |
+-----------------------------+-------------+----------+-------------+----------+-------------+
| Opening balance | 15,184,249 | | 12,564,952 | | 12,564,952 |
+-----------------------------+-------------+----------+-------------+----------+-------------+
| Mining expenditure incurred | 4,764,303 | | 2,672,374 | | 6,290,546 |
| during the period | | | | | |
+-----------------------------+-------------+----------+-------------+----------+-------------+
| Transferred from | - | | - | | 1,750,000 |
| Exploration & evaluation | | | | | |
+-----------------------------+-------------+----------+-------------+----------+-------------+
| Amortisation during the | (1,952,933) | | (2,598,172) | | (5,421,249) |
| period | | | | | |
+-----------------------------+-------------+----------+-------------+----------+-------------+
| | | | | | |
+-----------------------------+-------------+----------+-------------+----------+-------------+
| Closing balance | 17,995,619 | | 12,639,154 | | 15,184,249 |
+-----------------------------+-------------+----------+-------------+----------+-------------+
6. Exploration & evaluation expenditure
+-----------------------------+------------+----------+-----------+----------+-------------+
| Costs carried forward in | Unaudited | | Unaudited | | Audited |
| respect of areas of | 31 | | 31 | | 30 June |
| interest in: | December | | December | | 2009 |
| Exploration and evaluation | 2009 | | 2008 | | AUD$ |
| phases: | AUD$ | | AUD$ | | |
+-----------------------------+------------+----------+-----------+----------+-------------+
| Opening balance | 9,190,868 | | 5,202,541 | | 5,202,541 |
+-----------------------------+------------+----------+-----------+----------+-------------+
| Exploration expenditure | 3,530,594 | | 2,767,524 | | 6,782,457 |
| incurred during the period | | | | | |
+-----------------------------+------------+----------+-----------+----------+-------------+
| Transferred to Mine | - | | - | | (1,750,000) |
| Properties in production | | | | | |
| phase | | | | | |
+-----------------------------+------------+----------+-----------+----------+-------------+
| Exploration expenditure | - | | - | | (1,044,130) |
| written off | | | | | |
+-----------------------------+------------+----------+-----------+----------+-------------+
| | | | | | |
+-----------------------------+------------+----------+-----------+----------+-------------+
| Closing balance | 12,721,462 | | 7,970,065 | | 9,190,868 |
+-----------------------------+------------+----------+-----------+----------+-------------+
The amounts for intangible exploration and evaluation ("E & E") assets represent
costs incurred in relation to the Group's operations at Norseman. These amounts
will be written off to the income statement as exploration expenses unless
commercial reserves are established or the determination process is not
completed and there are no indicators of impairment. The outcome of ongoing
exploration and evaluation, and therefore whether the carrying value of E & E
assets will ultimately be recovered, is inherently uncertain. The Directors have
assessed the value of the exploration and evaluation expenditure carried as
intangible assets and in their opinion no provision for impairment is currently
necessary.
7. Goodwill
Goodwill
AUD$
Cost
At 31 December 2009, 30 June 2009 and 31 December 2008
44,983,622
Amortisation and impairment
At 31 December 2009, 30 June 2009 and 31 December 2008
(29,983,622)
__________
Net book value
At 31 December 2009, 30 June 2009 and 31 December 2008
15,000,000
=========
Goodwill arose on the acquisition of the Company's subsidiary undertakings. The
Group tests goodwill for impairment at least annually.
NOTES TO THE FINANCIAL INFORMATION
FOR THE PERIOD ENDED 31 DECEMBER 2009
8. Inventories
Unaudited Unaudited
Audited
31 December 31 December
30 June
2009 2008
2009
AUD$ AUD$
AUD$
Gold Bullion
2,956,306 3,612,379
2,716,396
Work in Progress - at cost
- Ore Stockpiles
697,233 564,052
948,289
- Gold in circuit
262,299 283,567
274,186
Raw materials and stores - at net realisable value 2,820,834
2,578,144 2,162,524
__________ __________
__________
6,736,672 7,038,142
6,101,395
========= =========
=========
9. Cash at bank and in hand
The Group has total cash on hand of $23,136,466 of which $5,835,465 is held as
security against the obligations for restoration and decommissioning expenditure
under the mining production and exploration licences.
10. Trade and other payables
Unaudited Unaudited
Audited
31 December 31 December
30 June
2009 2008
2009
AUD$ AUD$
AUD$
Trade accruals
7,922,275 6,290,074
7,619,108
Other payables
4,826,993 3,365,968
3,316,028
Corporation tax
-- 2,904,694
__________ __________
__________
12,749,268 9,656,042
13,839,830
========= =========
=========
11. Provisions
Unaudited
Group - 31 December 2009
Current:
Employee Restoration and
Total
benefits decommissioning
AUD$ AUD$
AUD$
At 1 July 2009
2,075,704 180,909
2,256,613
Charge to income statement
398,775 -
398,775
Transfer to non-current
- -
-
__________ __________
__________
At 31 December 2009
2,474,479 180,909
2,655,388
========= =========
=========
Non-current:
Employee Restoration and
Total
benefits decommissioning
AUD$ AUD$
AUD$
At 1 July 2009
33,643 6,384,766
6,418,409
Charge to income statement
77,825 -
77,825
Transfer from current
- -
-
__________ __________
__________
At 31 December 2009
111,468 6,384,766
6,496,234
========= =========
=========
NOTES TO THE FINANCIAL INFORMATION
FOR THE PERIOD ENDED 31 DECEMBER 2009
11. Provisions (continued)
Unaudited
Group - 31 December 2008
Current:
Employee Restoration and
Total
benefits decommissioning
AUD$ AUD$
AUD$
At 1 July 2008
1,741,623 980,920
2,722,543
Charge to income statement
134,677 -
134,677
Transfer to non-current
- (815,795)
(815,795)
__________ __________
__________
At 31 December 2008
1,876,300 165,125
2,041,425
========= =========
=========
Non-current:
Employee Restoration and
Total
benefits decommissioning
AUD$ AUD$
AUD$
At 1 July 2008
14,516 4,553,892
4,568,408
Charge to income statement
39,945 -
39,945
Transfer from current
- 815,795
815,795
__________ __________
__________
At 31 December 2008
54,461 5,369,687
5,424,148
========= =========
=========
Audited
Group - 30 June 2009
Current:
Employee Restoration and
Total
benefits decommissioning
AUD$ AUD$
AUD$
At 1 July 2008
1,741,623 980,920
2,722,543
Charge to income statement
334,081 (800,011)
(465,930)
__________ __________
__________
At 30 June 2009
2,075,704 180,909
2,256,613
========= =========
=========
Non-current:
Employee Restoration and
Total
benefits decommissioning
AUD$ AUD$
AUD$
At 1 July 2008
14,516 4,553,892
4,568,408
Charge to income statement
19,127 1,830,874
1,850,001
__________ __________
__________
At 30 June 2009
33,643 6,384,766
6,418,409
========= =========
=========
The Directors have considered environmental issues and the need for any
necessary provision for the cost of rectifying any environmental damage, as
might be required under local legislation and the Group's license obligations,
and have provided the above provisions for any future costs of decommissioning
or any environmental damage.
NOTES TO THE FINANCIAL INFORMATION
FOR THE PERIOD ENDED 31 DECEMBER 2009
12. Convertible Notes
Unaudited Unaudited
Audited
31 December 31 December
30 June
2009 2008
2009
AUD$ AUD$
AUD$
Current:
Convertible note, unsecured
- 4,620,000
-
========= ========= =========
Non-current:
Convertible notes, unsecured
- 10,015,275
-
========= =========
=========
Within not more than one year
- 4,620,000
-
Payable between 1 and 2 years
- 4,620,000
-
Payable between 2 to 5 years
- 5,395,275
-
__________ __________
__________
- 14,635,275 -
========= =========
=========
13. Interest-bearing loans and borrowings
Unaudited Unaudited
Audited
31 December 31 December
30 June
2009 2008
2009
AUD$ AUD$
AUD$
Current:
Obligations under finance lease (a)
5,650,472 2,592,748 3,712,343
Loans from Directors, secured
- 1,500,000
-
__________ __________
__________
5,650,472 4,092,748
3,712,343
========= =========
=========
Non-current:
Obligations under finance lease (a)
6,143,312 3,659,568 3,225,499
========= =========
=========
(a) Assets pledged as security
The carrying amounts of assets pledged as security for current and non-current
interest bearing liabilities are:
Unaudited Unaudited
Audited
31 December 31 December
30 June
2009 2008
2009
AUD$ AUD$
AUD$
Non-current:
Finance lease - Mobile equipment
17,890,037 7,958,091
9,942,926
__________ __________
__________
Total assets pledged as security
17,890,037 7,958,091
9,942,926
========= =========
=========
NOTES TO THE FINANCIAL INFORMATION
FOR THE PERIOD ENDED 31 DECEMBER 2009
13. Interest-bearing loans and borrowings (continued)
(b) Finance lease commitments
The Group has finance leases for various items of mobile equipment with a
carrying amount of $17,890,037 (30 June 2009: $9,942,926, 31 December 2008:
$7,958,091). These lease contracts expire within 3 to 4 years with no residual
payable.
Unaudited Unaudited
Audited
31 December 31 December
30 June
2009 2008
2009
AUD$ AUD$
AUD$
Within not more than one year
6,632,887 3,131,916
4,181,826
After one year but not more than five years
6,519,873 3,910,846 3,473,591
__________ __________
__________
Total minimum lease payments
13,152,760 7,042,762
7,655,417
Less amount representing finance charges
(1,358,976) (790,447)
(717,575)
__________ __________
__________
Present value of minimum lease payments 11,793,784
6,252,315 6,937,842
========= =========
=========
14. Share capital and options
Unaudited Unaudited Audited
31 December 31 December
30 June
2009 2008
2009
GBP GBP
GBP
Authorised
800,000,000 Ordinary shares of 1.25p each 10,000,000
10,000,000 10,000,000
========= =========
=========
Allotted, called up and fully paid
Ordinary shares of 1.25p each
2,156,500 1,008,625 2,148,250
========= =========
=========
AUD$ AUD$
AUD$
Allotted, called up and fully paid
Ordinary shares of 1.25p each
4,903,735 2,446,963 4,889,123
========= =========
=========
The Ordinary Shares rank pari passu in all respects including the right to
receive all dividends and other distributions declared, made or paid. At 31
December 2009, the number of ordinary shares of 1.25p each on issue is
172,520,000 (30 June 2009: 171,860,000, 31 December 2008: 80,690,000).
Share options
The details of share options outstanding are as follows:
+---------------------------+------------+-------------+------------+
| | Unaudited | Unaudited | Audited |
| Number of share options | 31 | 31 December | 30 June |
| | December | 2008 | 2009 |
| | 2009 | | |
+---------------------------+------------+-------------+------------+
| | | | |
+---------------------------+------------+-------------+------------+
| | 3,200,000 | 3,860,000 | 3,860,000 |
+---------------------------+------------+-------------+------------+
========= =========
=========
NOTES TO THE FINANCIAL INFORMATION
FOR THE PERIOD ENDED 31 DECEMBER 2009
15. Reserves
Group
+---------------------------+------------+-------------+------------+
| Foreign currency, | Unaudited | Unaudited | Audited |
| movements: | 31 | 31 December | 30 June |
| | December | | 2009 |
| | 2009 | 2008 | AUD$ |
| | AUD$ | AUD$ | |
+---------------------------+------------+-------------+------------+
| Opening balance | 518,742 | 454,019 | 454,019 |
+---------------------------+------------+-------------+------------+
| Foreign currency | - | 54,519 | 64,723 |
| transactions | | | |
+---------------------------+------------+-------------+------------+
| | | | |
+---------------------------+------------+-------------+------------+
| Closing balance | 518,742 | 508,538 | 518,742 |
+---------------------------+------------+-------------+------------+
+---------------------------+------------+-------------+-------------+
| | Unaudited | Unaudited | Audited |
| Equity reserves, | 31 | 31 December | 30 June |
| movements: | December | 2008 | 2009 |
| | 2009 | AUD$ | AUD$ |
| | AUD$ | | |
+---------------------------+------------+-------------+-------------+
| | | | |
+---------------------------+------------+-------------+-------------+
| Opening balance | 1,109,015 | 4,379,376 | 2,841,396 |
+---------------------------+------------+-------------+-------------+
| Restatement | - | - | 1,537,980 |
+---------------------------+------------+-------------+-------------+
| Opening balance, restated | 1,109,015 | 4,379,376 | 4,379,376 |
+---------------------------+------------+-------------+-------------+
| Foreign currency | - | - | (10,204) |
+---------------------------+------------+-------------+-------------+
| Share based payments - | 111,930 | 2,984,144 | 3,108,338 |
| charge | | | |
+---------------------------+------------+-------------+-------------+
| Unwinding equity | | | |
| component of convertible | - | - | (364,725) |
| notes | | | |
+---------------------------+------------+-------------+-------------+
| Excess of share based | | | |
| payment charge over | - | - | (3,963,770) |
| market value of | | | |
| management shares | | | |
+---------------------------+------------+-------------+-------------+
| Conversion of management | | | |
| shares into ordinary | - | - | (2,040,000) |
| share capital | | | |
+---------------------------+------------+-------------+-------------+
| Transfer to Retained | (128,178) | - | - |
| Earnings | | | |
+---------------------------+------------+-------------+-------------+
| | | | |
+---------------------------+------------+-------------+-------------+
| | 1,092,767 | | |
| Closing balance | | 7,363,520 | 1,109,015 |
+---------------------------+------------+-------------+-------------+
16. Share-based payments
Unaudited Unaudited Audited
31 December 31 December
30 June
2009 2008
2009
AUD$ AUD$
AUD$
The Group and Company recognised the
following charge in the income statement in
respect of its share based payment plans:
Share option charge
111,930 266,020
257,194
Management share charge
- 2,809,278
2,851,144
__________ __________
__________
111,930 3,075,298
3,108,338
========= =========
=========
NOTES TO THE FINANCIAL INFORMATION
FOR THE PERIOD ENDED 31 DECEMBER 2009
17. Exploration expenditure commitments
In order to maintain an interest in the mineral assets in which the Group is
involved, the Group is committed to meet the conditions under which the licences
were granted. The timing and amount of exploration expenditure commitments and
obligations of the Group are subject to the work programme required as per the
licence commitments and may vary significantly from the forecast based upon the
results of the work performed. Exploration results in any of the projects may
also result in variation of the forecast programmes and resultant expenditure.
Such activity may lead to accelerated or decreased expenditure.
+---------------------------+------------+-------------+------------+
| | Unaudited | Unaudited | Audited |
| | 31 | 31 December | 30 June |
| | December | 2008 | 2009 |
| | 2009 | AUD$ | AUD$ |
| | AUD$ | | |
+---------------------------+------------+-------------+------------+
As at the balance sheet date the
aggregate amount payable is:
Within not more than one year
6,651,940 5,805,140
6,610,060
========= =========
=========
18. Reconciliation of operating cash flows to net cash inflow from
operating activities
+---------------------------+------------+-------------+------------+
| Group: | Unaudited | Unaudited | Audited |
| | 31 | 31 December | 30 June |
| | December | 2008 | 2009 |
| | 2009 | AUD$ | AUD$ |
| | AUD$ | | |
+---------------------------+------------+-------------+------------+
Group operating profit
266,954 1,211,963
17,264,720
Adjustments for items not requiring an outlay
of funds:
Foreign currency - unrealised
- 54,520
54,520
Depreciation and amortisation
4,608,334 4,627,030
8,396,667
Exploration expenditure written off
- -
1,044,130
Profit on sale of financial assets available for sale
- (33,600)
(46,400)
Provision for obsolescence and rehabilitation
- -
1,087,110
Share-based payments charge
111,930 2,984,144
3,108,338
Impairment of other assets
- 40,000
40,000
__________ __________
__________
Operating profit before changes
in working capital
4,987,218 8,884,057
30,949,085
(Increase) Decrease in inventories
(635,277) 1,749,404 2,629,903
Decrease (Increase) in receivables and
prepayments (Note a)
(972,208) (2,172,608)
157,476
Increase in provisions
476,600 174,620
353,207
Increase (Decrease) in trade and other payables 6,670,383
(2,851,048) (886,428)
Taxation paid
(2,905,000) -
-
__________ __________
__________
Net cash inflow from operating activities
7,621,716 5,784,425 33,203,243
========= =========
=========
Note a: Inventories includes AUD$2,956,306 of Gold Bullion on hand at 31
December 2009 (31 December 2008: AUD$3,612,379, 30 June 2009: AUD$2,716,396).
**ENDS**
For further information visit www.norsemangoldplc.com or contact:
+--------------+------------------------+------------------------+
| Barry Cahill | Norseman Gold Plc | Tel: +61 (0) 8 9473 |
| | | 2222 |
| | | E-mail: |
| | | investors@ngold.com.au |
+--------------+------------------------+------------------------+
| Guy Wilkes | Ocean Equities Ltd | Tel: +44 (0) 20 7786 |
| | | 4370 |
+--------------+------------------------+------------------------+
| William | Astaire Securities plc | Tel: +44 (0) 20 7448 |
| Vandyk | | 4400 |
+--------------+------------------------+------------------------+
| | | |
+--------------+------------------------+------------------------+
Note to editors:
Norseman Gold plc is a dual AIM and ASX listed Australian gold production
company, which acquired the Norseman Gold Project in May 2007, Australia's
longest continually running gold operation. The Norseman Gold Project is
located in the Eastern Goldfields of Western Australia in the highly prospective
Norseman-Wiluna greenstone belt, 725km east of Perth and 186km from Kalgoorlie.
Gold was first found on the Norseman field in 1894 and over the last 65 years it
has produced over 5.5 million oz of gold. The mine is currently producing from
two high-grade narrow-vein underground gold mines - the Bullen and the
Harlequin. Currently, it has a total resource inventory of 20.0 Mt at a grade
of 5.5 g/t gold for 3.7 Moz of gold.
The tenements cover a 1,614 sq km area centred on the Norseman Township. The
landholding comprises 179 contiguous tenements consisting of 13 Exploration
Licences, 106 Mining Licences, 45 Prospecting Licences, 15 Miscellaneous
Licences and 29 Mining Lease Applications.
The Company's strategy is focused on extending the mine life through the
conversion of resources into reserves and identifying additional resources and
obtaining additional ore for the operating mill through re-treatment of tailings
or acquisitions of alternative sources of ore.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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