TIDMNGL
RNS Number : 2972N
Norseman Gold PLC
31 August 2011
Norseman Gold Plc. / Epic: NGL / Index: AIM / Sector: Mining
& Exploration
31 August 2011
NORSEMAN GOLD PLC
('Norseman Gold' or 'the Company')
Preliminary Results
Appendix 4E ASX Listing Rule 4.3A
Results for Announcement to the Market
30 June 11 30 June 10 Change
$'000 $'000 %
From continuing operations: Group
revenue 65,934 74,383 11.4%
Group operating (Loss) / profit (12,893) 230 -
(Loss) / profit before taxation (27,203) 1,094 -
(Loss) / Profit after taxation for
the period (21,801) 3,112 -
CHAIRMAN AND MANAGING DIRECTOR'S STATEMENT
Dear Shareholders
During the past financial year the Company has achieved some
significant milestones in its plans for future growth and
success.
Since acquiring the Norseman Gold Project in 2007, the directors
have recognised the inherent risk in operating only two mines,
which not only meant that the Phoenix Treatment Plant was operating
under capacity, but also that there was a significant risk to gold
production in the event that either of those two mines experienced
lean patches in terms of their ore production. In order to mitigate
these risks plans were made to identify and develop additional
sources of ore.
In the 2010 financial year, a significant sum was invested in
developing the OK Decline, which is the project's third source of
ore. This mine was officially classed as "in production" in January
2011 and is only now contributing suitable ore for the processing
plant.
In this year, further significant investment has been made in
development of the North Royal Open Pit, which is to be the
Project's fourth source of ore. The pit has been almost totally
dewatered, and significant progress made in the pre-stripping
required to expose the identified ore zones. Substantial volumes of
oxide ore has already been obtained from these activities which has
been stockpiled for blending. It is anticipated that commercially
viable quantities of fresh, hard rock ore will be mined in the
second quarter of the 2012 financial year, at which point the
Project will have achieved its target of having four, fully
productive mines. This will be a further significant achievement
that we all look forward to later this year. It has taken the hard
work of many people, plus the continuing support of our
shareholders to get to this point.
The total investment in mine development this year, which
includes the OK, North Royal and the two existing mines, Harlequin
and Bullen, has totalled in excess of AUD$22million. In addition to
this, the Group has continued to invest in exploration, outlaying
more than AUD$7.8million, and has invested a further AUD$11million
in property plant and equipment.
Despite these positive achievements the year has not been
without disappointment. Gold production was well below expectation,
at 50,173 ounces. This was achieved at a net direct operating cash
cost of AUD$1,227 per ounce. This level of production has meant
that for the year, the Group has reported a total operating loss of
AUD$12.9million before interest, tax and exceptional items.
Significant work has been undertaken to review and assess the
reasons for the shortfall in gold production and steps taken to
ensure it does not continue.
As for future development, the Group's geologists and mining
engineers continue to analyse and review the considerable volume
data that has been amassed on our tenements, with a view to
identifying the best opportunities for additional mines.
The Board is cognisant of the skilled labour and equipment
resources issues facing management as they strive to implement the
plans and policies and it continues to be the most challenging
aspect of mining in Western Australia.
However, despite the difficulties, in the coming year the Board
looks forward to an improved production profile from the four
operating mines and a comparable improvement in the Company's
financial result as the hard work and capital invested begin to
deliver results.
Vincent Pendal Barry Cahill
Chairman Managing Director
31 August 2011
Dividends
No Dividends have been declared or paid.
Net Tangible Assets Per Security
30 June 2011 30 June 2010
Cents / Share Cents / Share
Net tangible assets per security 37.8 32.9
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
Audit Status- The Company's financial statements for the year
ended 30 June 2011 are in the process of being audited.
In relation to the preliminary announcement of the results for
the year ended 30 June 2011 ("the announcement"), filed with the
Alternative Investment Market of the London Stock Exchange ("AIM")
and the Australian Securities Exchange ("ASX") on 31 August 2011,
we wish to inform the shareholders as follows:
Under ASX listing regulations, we are required to file our
unaudited preliminary announcement for the year ended 30 June 2011
by 31 August 2011. According to ASX listing regulations and the AIM
Rules of the London Stock Exchange there is no requirement for the
auditors to agree to the announcement prior to its filing. As
directors of the Company, we recognise that we are responsible for
preparing and issuing the announcement. Whilst not expected, there
is a risk that the Company may need to revise its financial
information in the light of final audit findings or other
developments occurring between the preliminary announcement being
notified to the exchanges and the formal completion of the
audit.
NORSEMAN GOLD PLC
UNAUDITED GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2011
Year ended Year ended
30 June 2011 30 June 2010
Notes AUD$ AUD$
Continuing operations
Group revenue 65,933,643 74,383,095
Cost of sales - direct costs (63,596,829) (60,750,919)
Amortisation (3,577,223) (3,865,462)
------------------------------------------ -------------- --------------
Gross profit (1,240,409) 9,766,714
Other operating income 2,531,309 2,199,180
------------------------------------------ -------------- --------------
Administrative expenses before
depreciation, exploration
expenditure write off, and
provision for
share based expenses (5,561,760) (5,494,400)
Exploration expenditure write
off and
provision for rehabilitation (93,189) 221,119
Depreciation (8,053,316) (6,299,985)
Share based expenses (475,612) (162,710)
------------------------------------------ -------------- --------------
(14,183,877) (11,735,976)
Total administrative expenses ___________ ___________
Group operating (loss) /
profit (12,892,977) 229,918
Interest receivable 695,973 863,805
Interest payable (6,380) (143)
(15,000,000) -
Impairment of goodwill ___________ ___________
(Loss) / profit before taxation (27,203,384) 1,093,580
5,402,459 2,018,767
Taxation 7 ___________ ___________
(Loss) / profit for the period (21,800,925) 3,112,347
========== ==========
Total comprehensive income
for the period attributable
to equity holders of the
Company (21,800,925) 3,112,347
========== ==========
(Loss) / profit per share
(cents)
Basic (10.9) 1.8
Diluted (10.9) 1.8
========== ==========
The results shown above relate entirely to continuing
operations.
NORSEMAN GOLD PLC
UNAUDITED GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2011
Foreign
Share Share Currency Equity Retained Total
Capital Premium Reserve Reserve Losses Equity
AUD$ AUD$ AUD$ AUD$ AUD$ AUD$
Year ended 30
June 2011
Balance at 1
July 2010 4,905,650 87,292,058 - - (20,489,104) 71,708,604
Net loss for
2011 - - - - (21,800,925) (21,800,925)
_________ _________ ________ ________ __________ __________
Total
comprehensive
income for
the period - - - - (21,800,925) (21,800,925)
Share issues 959,782 31,767,638 - - - 32,727,420
Share based
expenses - - - 475,612 - 475,612
_________ _________ _________ _________ _________ _________
Balance at 30
June 2011 5,865,432 119,059,696 - 475,612 (42,290,029) 83,110,711
======== ========== ======== ======== ========== =========
Year ended 30
June 2010
Balance at 1
July 2009 4,889,123 86,864,874 518,742 1,109,015 (25,391,918) 67,989,836
Net profit for
2010 - - - - 3,112,347 3,112,347
_________ _________ ________ _________ _________ ________
Total
comprehensive
income for
the period - - - - 3,112,347 3,112,347
Share issues 16,527 427,184 - - - 443,711
Share based
payments - - - 162,710 - 162,710
Transfer of
capitalised
share based
expense on
exercise of
options - - (128,177) 128,177 -
Transfer of
capitalised
share based
expense on
expiry of
options - - - (1,143,548) 1,143,548 -
Transfer of
foreign
currency
reserve on
change of
functional
currency - - (518,742) - 518,742 -
_________ _________ ________ _________ _________ _________
Balance at 30
June 2010 4,905,650 87,292,058 - - (20,489,104) 71,708,604
======== ========= ======== ======== ========== =========
NORSEMAN GOLD PLC
UNAUDITED GROUP BALANCE SHEET
AS AT 30 JUNE 2011
As at As at
30 June 2011 30 June 2010
Notes AUD$ AUD$
ASSETS
Non-Current Assets
Property, plant and equipment 29,387,665 26,346,491
Mine properties in production
phase 50,254,012 27,631,850
Exploration and evaluation
expenditure 16,422,085 12,704,347
Goodwill 3 - 15,000,000
Deferred tax asset 6,859,683 1,457,224
___________ ___________
102,923,445 83,139,912
___________ ___________
Current Assets
Trade and other receivables 4,316,518 3,509,350
Inventories 7,068,762 7,332,810
Cash at bank and in hand 10,502,472 13,637,420
___________ ___________
21,887,752 24,479,580
___________ ___________
Total Assets 124,811,197 107,619,492
========== ==========
LIABILITIES
Current Liabilities
Trade and other payables 17,846,833 13,502,050
Provisions 2,536,288 3,001,009
Interest-bearing loans and
borrowings 9,501,829 6,320,015
___________ ___________
29,884,950 22,823,074
___________ ___________
Non-Current Liabilities
Provisions 6,501,637 6,450,114
Interest-bearing loans and
borrowings 5,313,899 6,637,700
___________ ___________
11,815,536 13,087,814
___________ ___________
Total Liabilities 41,700,486 35,910,888
========== ==========
Net Assets 83,110,711 71,708,604
========== ==========
EQUITY
Capital and Reserves
Share capital 4 5,865,432 4,905,650
Share premium account 4 119,059,696 87,292,058
Equity reserve 5 475,612 -
Retained losses (42,290,029) (20,489,104)
___________ ___________
Shareholders' Equity 83,110,711 71,708,604
========== ==========
NORSEMAN GOLD PLC
UNAUDITED GROUP CASH FLOW STATEMENT
FOR THE YEAR ENDED 30 JUNE 2011
Year ended Year ended
30 June 2011 30 June 2010
AUD$ AUD$
Net cash inflow from operating
activities 2,821,828 8,399,669
____________ ____________
Investing activities
Funds used in mine properties
& production (22,065,393) (12,313,065)
Funds used in exploration (7,874,311) (7,515,708)
Payments to purchase plant &
equipment (11,292,098) (14,732,333)
Interest received 695,972 717,469
Interest paid (6,380) (143)
____________ ____________
Net cash used in investing activities (40,542,209) (33,843,780)
____________ ____________
Financing activities
Cash proceeds from issue of
shares 34,560,911 443,711
Hire purchase financing (1,641,987) 6,019,873
Share issue costs (1,833,491) -
Cash proceeds from debt financing 3,500,000 -
____________ ____________
Net cash from financing activities 34,585,433 6,463,584
____________ ____________
(Decrease)/increase in cash
and cash equivalents (3,134,948) (18,980,527)
Cash and cash equivalents at
beginning of year 13,637,420 32,617,947
____________ ____________
Cash and cash equivalents at
end of year 10,502,472 13,637,420
=========== ===========
NORSEMAN GOLD PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2011
1.1 Accounting policies
The principal accounting policies applied in the preparation of
these financial statements are set out below. These policies have
been consistently applied to all the years presented, unless
otherwise stated below.
1.2 Basis of preparation
The financial statements are prepared on a going concern basis,
under the historical cost convention and in accordance with
International Financial Reporting Standards, as adopted by the
European Union ("IFRS"), including IFRS6 'Exploration for and
Evaluation of Mineral Resources' and in accordance with the
Companies Act 2006. The Parent Company's financial statements have
also been prepared in accordance with IFRS and the Companies Act
2006.
1.3 Going Concern
The Group incurred an operating loss of AUD$12,892,977 for the
year (2010: AUD$229,918 profit). The loss in the current year has
been as a result of lower than anticipated gold production from the
three operating underground mines, Harlequin, Bullen and the OK
Decline, at the Company's Norseman Project. The Reserves of these
three mines have not altered materially.
The Group's operations did, however, generate positive cash flow
of AUD$3,928,162 (2010: AUD$8,399,669) and continued to invest
heavily with major investments in mine development and
infrastructure, and property plant and equipment. This ongoing
investment in the Norseman Project's future resulted in a total net
cash invested in capital assets of AUD$37,720,381 which was funded
from capital raisings and finance drawdown.
The Group is dependent on cash flow generated from its mining
operations to fund its ongoing activities. During the year, two
capital raisings were undertaken which were intended to provide the
capital required to enable the development the North Royal Open
Pit, and bring it into production.
The Company's subsidiary, Central Norseman Gold Corporation
Limited, the operator of the Norseman Project, also secured a
financing facility which will provide up to AUD$11.5million of
additional funding for the operation, should it be required.
The directors have reviewed the forward projections of the
Norseman Project, specifically the anticipated production and
resultant cash flows from the operation over the coming twelve
months. The forecast model requires a number of estimates to be
made. The key estimates required are:
-- gold production;
-- gold selling price; and
-- operating costs.
In terms of gold production, the forecast gold production for
the 2011/12 financial year is substantially higher than achieved
for the 2009/10 and 2010/11 financial years.
The Harlequin & Bullen underground mines are forecast to
produce at rates which, although higher than in the previous year,
are well within the capabilities of the mines, as demonstrated in
earlier years. The OK Decline, which was commenced in 2010 but is
only just now beginning to ramp up to full production, is forecast
to produce at or near to its capacity.
The North Royal Open Pit, which has been in development since
December 2010, is expected to contribute processable ore from the
second quarter of the 2011/12 financial year, which will supplement
the ore produced from the three underground mines, and enable the
processing plant to be operated at capacity.
The forecast for the coming year is sensitive to variation in
gold production. While the directors consider that the forecast
gold production provided by management of in excess of 100,000
ounces of gold for the coming year is achievable, directors also
recognise that competition for resources (equipment and skilled
labour) within the mining industry has the potential to negatively
impact the production forecast.
At a baseline gold price of AUD$1,450 per ounce, the Group will
be dependent upon achieving at least 85% of the forecast level in
the coming twelve months to enable sufficient funds to be generated
from operations to remain a going concern or alternatively will
have to raise additional equity or debt.
Gold production may vary as a result of lower than expected ore
tonnes being mined, or because the grade of ore recovered is less
than anticipated. Equally gold production may increase above
expectations due to either or both of these factors.
In terms of gold selling price, the baseline forecasts have used
a gold sale price of AUD$1,450 per ounce. The actual average gold
sale price achieved for 2010/11 financial year was AUD$1,386 per
ounce, and the current price of gold is approximately AUD$1,759 per
ounce (London Gold market AM fixing price as at 24 August 2011).
The forecast for the coming year is sensitive to movements in gold
price. While the directors are satisfied that the gold price
estimate of AUD$1,450 per ounce used is reasonable, the directors
also recognise that the gold price varies up and down and that a
downward movement in the gold price has the potential to negatively
impact upon the expected cash flows. The Group will be dependent
upon achieving at least 85% of the baseline gold price of AUD$1,450
per ounce in the coming twelve months to enable sufficient funds to
be generated from operations to remain a going concern or
alternatively will have to raise additional equity or debt.
In terms of operating costs, costs are forecast to increase in
the 2011/12 financial year. The mining industry in Western
Australia has substantial cost pressures as a result of the high
demand for skilled labour and services. This places additional cost
pressure on the business but is not expected to have an impact on
the Group's going concern expectations.
Should the estimates for either gold production or gold price
made in carrying out the directors' assessment not eventuate as
anticipated, the Group will have to seek alternative sources of
funding or amend its business plan. In this event, and in the
absence of its ability to acquire financing through alternative
sources, there would be some doubt over the ability of the Group to
continue as a going concern.
The Directors acknowledge this risk, however believe that the
Group has sufficient funds, or access to funds, through capital
raising or alternative sources, and the ability to generate funds
from its operations to enable the Group to continue to trade for
the next twelve months, and accordingly these accounts have been
prepared on a going concern basis.
2. (Loss) / profit per share
The basic (loss) / profit per ordinary share has been calculated
using the loss for the financial year of AUD$21,800,925 (2010:
Profit AUD$3,112,347) and the weighted average number of ordinary
shares in issue of 199,199,851 (2010: 172,344,767).
3. Goodwill
Year ended Year ended
30 June 2011 30 June 2010
Group AUD$ AUD$
Cost
At 1 July 44,983,622 44,983,622
____________ ____________
Amortisation and impairment
At 30 June
Impairment charge for the (29,983,622) (29,983,622)
year (15,000,000) -
____________ ____________
Net book value
At 30 June - 15,000,000
============ ============
In accordance with the Group's accounting policies impairment
reviews on the value of investments in and loans to subsidiaries
are carried at each reporting date. When events or changes in
circumstances indicate that the carrying amount of loans or
investments may not be supported by future net revenues from the
subsidiaries a comparison between the net book value of the loans
and investments and the discounted future cash flows from the
subsidiary's undertakings is performed. To the extent that the
carrying amount exceeds the recoverable amount, the carrying value
is written down to its recoverable amount and charged as an
impairment.
As part of their impairment review process discounted cash flow
calculations were conducted on the Group's sole cash generating
unit, the Norseman gold project ("Project"), as at 30 June 2011, in
order to assess the value of the future cash flows forecast to be
generated. Estimates of future net cash flows are based on various
factors including but not limited to forecast gold production,
future prices for gold sales and future operating and development
costs. Such amounts are estimates based upon available knowledge
and can therefore be subject to error or change. The discounted
future cash flow estimates were performed over a five year basis
using an appropriate discount rate of 15%.
The gold price assumptions used ranged from AUD$1,450 per ounce
in year 1, AUD$1,528 per ounce in year 2, with a gradual decrease
down to AUD$1,218 in year 5. These gold prices are the average of
recent gold price forward estimates published by eleven leading
investment banks operating in Australia.
Gold production is forecast to be in a range between 100,000 and
110,000 ounces per year across the period of the review. The gold
production forecasts are supported by a JORC compliant Resource
Statement as set out in the March 2011 Open Pit & Underground
Resource and Reserve Summary published on 28 July 2011.
Based on the assumptions of gold production, gold sale price and
future operating costs used, the directors have determined that the
carrying values of loans to and investments in subsidiaries are
fully recoverable by virtue of the Project being Net Present Value
("NPV") positive. However, as a result of the acknowledged risk
that the loans to and investment in subsidiaries may become
impaired as a result of variations in the estimates used, the
directors have taken the decision to record a charge for asset
impairment against the value of loans to subsidiaries to the extent
of AUD$15,000,000 in these accounts. On a consolidated level this
has been reflected as a write-off of the goodwill previously
carried in the consolidated group balance sheet.
Additionally, the directors specifically acknowledge that the
NPV calculation is sensitive to gold production and gold price.
Due to the largely fixed cost nature of the gold mining
operations, a 7.25% reduction in gold production across the entire
period of the review has the effect of taking the NPV of the
Project from positive, to zero. A 1% reduction in gold production
across the entire review period has the effect of reducing the NPV
by approximately AUD$3.8million. Should production be less than
forecast by more than 7.25% a further impairment of the carrying
value of loans to and investments in subsidiaries may be
required.
Gold production may vary as a result of lower than expected ore
tonnes being mined, or because the grade of ore recovered is less
than anticipated. Equally gold production may increase above
expectations due to either or both of these factors.
Similarly, a 7.25% reduction in the forecast gold price across
the entire period of the review has the effect of taking the NPV of
the Project from positive to zero. A 1% reduction in gold price
across the entire review period reduces the NPV by approximately
AUD$3.8million. Should the gold prices be less than forecast by
more than 7.25% a further impairment of the carrying value of loans
to and investments in subsidiaries may be required.
4. Share capital
Year ended Year ended
30 June 30 June
2011 2010
GBP GBP
Allotted, called up and fully paid
Ordinary shares of 1.25p each 2,749,278 2,157,625
================== ================
AUD$ AUD$
Allotted, called up and fully paid
Ordinary shares of 1.25p each 5,865,432 4,905,650
================== ================
Issued Issued
and fully Share and fully
Movement in issued and paid premium paid Share premium
fully paid capital and capital reserve capital reserve
share premium reserve Number GBP GBP AUD$ AUD$
Total as at 30 June 2009 171,860,000 2,148,250 37,456,430 4,889,123 86,864,874
Issued on 9 October 2009
- Conversion of options
Issued on 31 May 2010 - 660,000 8,250 198,000 14,612 352,516
Conversion of options 90,000 1,125 43,875 1,915 74,668
Total as at 30 June 2010 172,610,000 2,157,625 37,698,305 4,905,650 87,292,058
Issued on 4 Octber2010
Share issue expenses
Issued on 29 October 2010
- Conversion of options 17,912,709
Issued on 3 December 2010 (859,084)
- Conversion of options 25,000,000 312,500 10,937,500 511,792 38,684
Issued on 17 February 50,000 625 24,375 992 46,748
2011 Share issue 60,000 750 29,250 1,198 15,602,988
expenses 22,222,222 277,778 9,722,222 445,800 (974,407)
Total as at 30 June 2011 219,942,222 2,749,278 58,411,652 5,865,432 119,059,696
============ ========== ============= ========== ==============
On 4 October 2010, the number of Ordinary shares issued and
fully paid was increased from 172,610,000 Ordinary Shares of
GBP0.0125 each to 197,610,000 Ordinary shares of GBP0.0125. This
related to an issue of shares at an issue price of GBP0.45.
On 29 October 2010, the number of Ordinary shares issued and
fully paid was increased from 197,610,000 Ordinary shares of
GBP0.0125 each to 197,660,000 Ordinary shares of GBP0.0125. This
related to the conversion of share options at 50p.
On 3 December 2010, the number of Ordinary shares issued and
fully paid was increased from 197,660,000 Ordinary shares of
GBP0.0125 each to 197,720,000 Ordinary shares of GBP0.0125. This
related to the conversion of share options at 50p.
On 17 February 2011, the number of Ordinary shares issued and
fully paid was increased from 197,660,000 Ordinary shares of
GBP0.0125 each to 219,942,222 Ordinary shares of GBP0.0125. This
related to an issue of shares at an issue price of GBP0.45.
The Ordinary shares rank pari passu in all respects including
the right to receive all dividends and other distributions
declared, made or paid.
5. Reserves
Equity reserve, movements: AUD$
At 1 July 2010 -
Share based payments 475,612
At 30 June 2011 475,612
========
6. Share-based expenses
Year ended Year ended
30 June 30 June
2011 2010
AUD$ AUD$
The Group and Company recognised the following
charge in
the income statement in respect of its share
based expense plans:
Share option charge 475,612 162,710
=========== ===========
Share options
The details of share options outstanding at 30 June 2011 are as
follows:
Number
of
Share options
At 1 July 2010 1,160,000
Options expired and lapsed or cancelled in the year (2,410,000)
Options Issued during the year 10,800,000
At 30 June 2011 9,550,000
===============
Share option charge
Valuation methodology:
The option values are calculated with reference to the
Black-Scholes option pricing model taking into account the
following assumptions:
Employee Director Incentive
options options options
Share price $0.92 $0.228 $0.265
Exercise price $1.04 $1.04 $0.71
Expected volatility 39.6% 103.7% 161.9%
Option life 5 years 5 years 5 years
Expected dividends Nil Nil Nil
Risk free interest rate 4.75% 4.75% 4.75%
The volatility percentage used is the actual volatility in the
Company's share price as quoted on the ASX for the period two
months prior to the issue date of the options.
Options issued:
2,500,000 share options exercisable at $1.04 were granted under
an Unapproved Employee Share Option Plan approved by the Board on
28 March 2007 and amended pursuant to a resolution of the Board
approved on 15 August 2007 and further amended pursuant to a
resolution of the Board dated 24 March 2009. These options were
issued on 28 April 2011 and have a 24 month vesting period, and an
expiry date of 28 April 2016. ("Director options")
6,800,000 share options exercisable at $1.04 were granted to
various employees under an Unapproved Employee Share Option Plan
approved by the Board on 28 March 2007 and amended pursuant to a
resolution of the Board approved on 15 August 2007 and further
amended pursuant to a resolution of the Board dated 24 March 2009.
Subsequent to their issue, 1,250,000 options have lapsed by virtue
of the awardees terminating their employment with the group,
leaving 5,550,000 of these options on issue. The options were
issued on 24 January 2011, have a 24 month vesting period from date
of issue and expire on 24 January 2016. ("Employee options")
1,500,000 share options exercisable at $0.41 were granted to a
long term contractor of the Company's subsidiary Central Norseman
Gold Corporation Ltd, approved by the Board on 28 April 2011. The
options were issued on 6 May 2011, have a 24 month vesting period
and an expiry date of 6 May 2016. ("Incentive options")
7. Taxation
Year ended Year ended
30 June 2011 30 June 2010
AUD$ AUD$
Current tax
Current corporation tax (credit) / charge - (2,426,656)
Credit for over-accrual of tax in prior
years (600,204) (1,615,381)
Deferred tax asset (DTA) recognition (8,767,972) (96,994)
Deferred tax liability 3,965,717 2,120,264
____________ ____________
Total current tax (credit) / charge as
reported in profit / (loss) (5,402,459) (2,018,767)
=========== ===========
The current tax charge for the period can be reconciled to the
(loss) / profit per income statement as follows:
Group (loss) / profit before tax (27,203,384) 1,093,580
=========== ===========
Tax at the Australian corporation tax
rate of 30% (8,161,016) 328,074
Tax effects of:
Effect of timing differences:
- Exploration & evaluation and
mine properties (3,883,087) (2,452,328)
- Other 563,972 (375,929)
Share based expenses 142,684 48,813
Other non-deductable expenses 4,483,547 24,713
Adjustment to prior year DTA & DTL
recognition 2,051,645 2,023,271
Credit for over-accrual of tax in prior
years (600,204) (1,615,381)
____________ ____________
Total current tax (credit) / charge as
reported in profit / (loss) (5,402,459) (2,018,767)
=========== ===========
8. Dividend
The Directors do not propose the payment of a dividend.
9. Preliminary announcement
This preliminary announcement for the year ended 30 June 2011 is
unaudited and does not constitute statutory accounts as defined in
section 434 of the Companies Act 2006.
It has 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
2010 and those to be used for the year ending 30 June 2011.
The financial statements for the year ended 30 June 2010 have
been delivered to the Registrar of Companies and the auditor's
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.
**ENDS**
For further information visit www.norsemangoldplc.com or
contact:
Barry Cahill Norseman Gold Plc Tel: +61 (0) 8 9473
2200
Guy Wilkes Ocean Equities Ltd Tel: +44 (0)20 7786
4370
-------------------------- --------------------
Nandita Sahgal Seymour Pierce Ltd Tel: +44 (0)20 7107
8000
-------------------------- --------------------
Jeremy Stephenson Seymour Pierce Ltd Tel: +44 (0)20 7107
8000
-------------------------- --------------------
Hugo de Salis St Brides Media & Finance Tel: +44 (0)20 7236
Ltd 1177
-------------------------- --------------------
E-mail investors@ngold.com.au
-------------------------- --------------------
Note to editors:
Norseman Gold plc is an AIM listed 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 ounces of gold. The
mine is currently producing from three high-grade narrow-vein
underground mines - the Bullen, the Harlequin and the OK Declines
and developing the North Royal Open Pit. Currently, it has a total
resource inventory of 3.4 million ounces of gold at an average
grade of 4.7 g/t.
The tenements cover a 2,360 sq km area centred on the Norseman
Township. The landholding comprises 221 tenements consisting of 85
Exploration Licences, 108 Mining Licences, 3 Prospecting Licences,
15 Miscellaneous Licences, 5 Exploration Licence Applications, 3
Prospecting Licence Applications and 1 Mining Lease
Application.
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 the development of additional mines. The Company has
fifteen advanced resource projects under review of which three have
pre-development work being undertaken on them. It is anticipated
that at least one, if not all the pre-development projects will
develop into mining propositions.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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