TIDMRMLA
RNS Number : 8325O
Rusina Mining NL
13 March 2009
For Immediate Release
13 March 2009
Rusina Mining NL
("Rusina" or the "Company")
Interim Audited Financial Report for the half-year ended 31 December 2008
+--------------------+-----------------------------------------------------------+
| Directors' report |
+--------------------------------------------------------------------------------+
| |
+--------------------------------------------------------------------------------+
| The directors of Rusina Mining NL submit the financial report of the |
| consolidated entity and the Auditor's review report thereon for the half-year |
| ended 31 December 2008. In order to comply with the provisions of the |
| Corporations Act 2001, the directors report as follows: |
| Directors |
| |
+--------------------------------------------------------------------------------+
| The names of the directors who have held office during or since the end of the |
| half-year and until the date of this report are noted below. Directors were in |
| office for this entire period unless otherwise stated. |
| |
+--------------------------------------------------------------------------------+
| Mr Gordon Getley | Chairman/Non Executive Director |
+--------------------+-----------------------------------------------------------+
| Mr Robert Gregory | Managing Director/Chief Executive Officer |
+--------------------+-----------------------------------------------------------+
| Mr Philip Fillis | Director |
+--------------------+-----------------------------------------------------------+
| Mr Antony Butler | Non Executive Director |
+--------------------+-----------------------------------------------------------+
| | |
+--------------------+-----------------------------------------------------------+
| Review of operations |
+--------------------------------------------------------------------------------+
| Despite the significant deterioration in global |
| economic conditions during the period the Company |
| continued to make progress across its key areas of |
| operation in the Philippines. Of most significance |
| was the finalisation of the pre-feasibility study |
| for the nickel heap leach project at Acoje. In |
| addition the Company completed the acquisition of |
| the Barlo copper/gold project and commenced the |
| direct shipping of chromite. |
+--------------------------------------------------------------------------------+
| Nickel Heap Leach |
+--------------------------------------------------------------------------------+
| In November the Company released the results of |
| the Acoje nickel heap leach pre-feasibility study |
| (PFS) utilising partner European Nickel PLC's heap |
| leach technology. |
| The PFS results demonstrate an economically viable |
| nickel laterite project using heap leach |
| technology producing 24,500 tonnes a year of |
| contained nickel and 930 tonnes of contained |
| cobalt. The study for the Acoje project is based |
| on a JORC Indicated Resource of 30.76 million |
| tonnes at 1.12% nickel and 0.05% cobalt (at a 0.8% |
| nickel cut-off for saprolite and a 0.9% nickel cut |
| off for limonite) giving the project an initial |
| mine life of ten years. Mining will be at a rate |
| of three million tonnes per annum, with a low |
| strip ratio of 0.46, and cash costs are estimated |
| at US$3.10 per pound of nickel (at US$6/lb Ni), |
| net of by-products including a refining charge of |
| 25% of the nickel price and a cobalt price of |
| US$10/lb. Further potential resources have been |
| identified, the JORC Inferred Resources at Acoje |
| and the Zambales Chromite deposit, which are |
| expected to extend the mine life beyond 20 years |
| and are expected to be confirmed to JORC Indicated |
| Resource levels during the definitive feasibility |
| study. |
| |
+--------------------------------------------------------------------------------+
| The highlights of the PFS include: |
| - JORC combined limonite plus saprolite Indicated Resource of 34.41 Mt at |
| 1.09% nickel from an Inferred plus Indicated Resource of 50.14 Mt at 1.06% |
| nickel using a 0.8% cut off grade |
| - Estimated annual production of 24,500 tonnes of nickel and 930 tonnes of |
| cobalt |
| - Estimated cash cost of US$3.10/lb of nickel, net of by-products including |
| refining costs at US$6.00/lb nickel price and US$10/lb cobalt price |
| - Total development estimated at US$498 million |
| - Estimated capital cost per annual pound of nickel of US$7.84 |
| - Post-tax Net Present Value of US$375 million (at a 10% discount rate) and |
| US$6/lb nickel price and $10/lb cobalt |
| - Internal Rate of Return of 28.3% |
| - 3 year payback period |
| - Forecast annual sales of US$260 million, based on a long term nickel price |
| of US$6.00/lb and including by-product credits |
| - Significant potential to increase NPV and IRR with extended mine life by |
| confirming the JORC Inferred Acoje and Zambales Chromite deposits to JORC |
| Indicated status |
| |
+--------------------------------------------------------------------------------+
| European Nickel ('EN') and the Company have now moved into the definitive |
| feasibility study ('DFS') phase with the construction of the trial leach |
| facility to demonstrate the large scale permeability and recovery of the Acoje |
| ore. First leaching is on schedule for April 2009. In addition European Nickel |
| have constructed a research laboratory at Acoje where larger 4m column test |
| work as well as advanced metallurgical work on enhancing the final mixed |
| hydroxide products can be undertaken as part of the DFS. The permitting of the |
| full scale plant has also commenced and Chinese engineering group, China |
| Tianchan Engineering Corporation, have conducted a site visit. European Nickel |
| are funding the DFS by spending US$10m to earn a 40% interest in the project. |
| |
+--------------------+-----------------------------------------------------------+
+-------------------------------------------------------------------------------+
| Direct Shipping Operations |
+-------------------------------------------------------------------------------+
| Shipping of nickel laterite ore was halted during the period due to low |
| nickel prices and a significant reduction in demand from Chinese buyers. A |
| trial high-grade shipment to a Japanese customer was made during the period |
| and it is anticipated further cargoes may follow. Interest still exists for |
| high iron shipments although margins are minimal. Small tonnages of chromite |
| ore shipped via containers commenced during the period. The Acoje mine was |
| once South-East Asia's largest chromite mine and the Company is looking for |
| partners to reopen large-scale underground chromite mining. |
+-------------------------------------------------------------------------------+
| |
+-------------------------------------------------------------------------------+
| Exploration |
+-------------------------------------------------------------------------------+
| The Company has several exploration tenements under application. The main |
| activities on these tenements has been gaining the requisite approvals from |
| stakeholders and local government agencies prior to physical exploration |
| activities can be undertaken. |
+-------------------------------------------------------------------------------+
| |
+-------------------------------------------------------------------------------+
| Corporate Activity |
+-------------------------------------------------------------------------------+
| Early in the period the Company finalised the acquisition of the Barlo |
| project, a copper/gold prospect located some 30 km north of the Acoje |
| tenement. A work programme is currently being finalised for this project. The |
| Company continues to be mindful of its cash resources and has implemented a |
| new pared-back budget, while pushing forward with its partner funded |
| activities to further the development of its flag-ship Acoje project. |
+-------------------------------------------------------------------------------+
The Geological Information in this review of operations is based on information
compiled by Mr Scott Robson, who is a Member of The Australasian Institute of
Mining and Metallurgy, and has sufficient experience which is relevant to the
style of mineralisation and type of deposit under consideration and to the
activity which he is undertaking to qualify as a Competent Person as defined in
the 2004 Edition of the "Australasian Code for Reporting of Exploration results,
Mineral Resources and Ore Reserves". Mr Robson consents to the inclusion in this
review of operations of the matters based on his information in the form and
context in which it appears.
+-------------------------------------------------------------------------------+
| |
+-------------------------------------------------------------------------------+
| Robert Gregory |
+-------------------------------------------------------------------------------+
| Managing Director |
+-------------------------------------------------------------------------------+
| 13 March 2009 |
+-------------------------------------------------------------------------------+
A copy of the report can be viewed and downloaded from the Company's website,
www.rusina.com.au, or as a link to this announcement:
Contacts:
+------------------+--------------------+----------------------------+
| Mark Hanlon | Rusina Mining NL | Tel: +61 |
| | | 8 9226 1111 |
| | | rusinaadmin@rusina.com.au |
+------------------+--------------------+----------------------------+
| | | |
+------------------+--------------------+----------------------------+
| Roland Cornish | Beaumont Cornish | Tel: +44 |
| | | (0) 207 |
| | | 628 3396 |
+------------------+--------------------+----------------------------+
+--------------------------------+
| Directors' |
| declaration |
+--------------------------------+
| |
+--------------------------------+
| In the |
| opinion |
| of the |
| directors |
| of Rusina |
| Mining |
| NL: |
| |
+--------------------------------+
| 1. |
| The |
| financial |
| statements |
| and notes |
| thereto, |
| as set out |
| on pages 7 |
| to 15, are |
| in |
| accordance |
| with the |
| Corporations |
| Act 2001 |
| including: |
| * |
| complying |
| with |
| Accounting |
| Standard |
| AASB 134: |
| Interim |
| Financial |
| Reporting |
| and the |
| Corporations |
| Regulations; |
| and |
| b. giving a |
| true and |
| fair view of |
| the |
| consolidated |
| entity's |
| financial |
| position as |
| at 31 |
| December |
| 2008 and of |
| its |
| performance |
| for the |
| half-year |
| then ended. |
| |
+--------------------------------+
| 2. There |
| are |
| reasonable |
| grounds to |
| believe |
| that the |
| Company |
| will be |
| able to |
| pay its |
| debts as |
| and when |
| they |
| become due |
| and |
| payable. |
+--------------------------------+
| |
+--------------------------------+
| This |
| declaration |
| is signed |
| in |
| accordance |
| with a |
| resolution |
| of the |
| Board of |
| Directors |
| made |
| pursuant to |
| s.303(5) of |
| the |
| Corporations |
| Act 2001. |
+--------------------------------+
| |
+--------------------------------+
| On |
| behalf |
| of the |
| directors |
+--------------------------------+
| |
+--------------------------------+
+----------+
| |
+----------+
| Robert |
| Gregory |
+----------+
| Managing |
| Director |
+----------+
| |
+----------+
| 13 March |
| 2009 |
+----------+
+----------------------------+----+----+--+--+----------+------+--+-------------+-------------+
| Condensed consolidated income statement for the |
| half-year ended 31 December 2008 |
+---------------------------------------------------------------------------------------------+
| | | | | |
+----------------------------+---------------+-----------------+--+---------------------------+
| | | | |Note | | Half-year | Half-year |
| | | | | | | ended 31 | ended 31 |
| | | | | | | Dec 2008 | Dec 2007* |
| | | | | | | $ | $ |
+---------------------------------+-------+--+----------+------+--+-------------+-------------+
| Revenue | | | | | | 68,687 | - |
+---------------------------------+-------+--+----------+------+--+-------------+-------------+
| | | | | | | |
+---------------------------------+----------+----------+------+--+-------------+-------------+
| Total Revenue | | | | | 68,687 | - |
+---------------------------------+----------+----------+------+--+-------------+-------------+
| | | | | | | |
+-----------------------------------------+--+----------+------+--+-------------+-------------+
| Share of loss of associates | | | | | | (27,307) | - |
+--------------------------------------+--+--+----------+------+--+-------------+-------------+
| Share of loss from joint venture | | | | | | (258,759) | - |
+--------------------------------------+--+--+----------+------+--+-------------+-------------+
| Administration expenses | | | | | | (2,541,780) | (2,359,826) |
+--------------------------------------+--+--+----------+------+--+-------------+-------------+
| Finance income | | | | | | 1,170,963 | 542,836 |
+--------------------------------------+--+--+----------+------+--+-------------+-------------+
| Finance costs | | | | | | - | (2,676) |
+--------------------------------------+--+--+----------+------+--+-------------+-------------+
| Change in fair value of derivative | | | | | | 243,276 | 2,222,026 |
| liability | | | | | | | |
+--------------------------------------+--+--+----------+------+--+-------------+-------------+
| Loss on sale of assets | | | | | | (1,232) | - |
+--------------------------------------+--+--+----------+------+--+-------------+-------------+
| Depreciation | | | | (87,785) | (63,459) |
+--------------------------------------------+----------+------+--+-------------+-------------+
| Profit/(Loss) before income tax | | | | 2 | | (1,433,937) | 338,901 |
| expense | | | | | | | |
+---------------------------------+-------+--+----------+------+--+-------------+-------------+
| Income tax expense | | | | | | - | - |
+---------------------------------+-------+--+----------+------+--+-------------+-------------+
| Profit/(Loss) for the period | | | | | | (1,433,937) | 338,901 |
+---------------------------------+-------+--+----------+------+--+-------------+-------------+
| | | | | | | | |
+---------------------------------+-------+--+----------+------+--+-------------+-------------+
| Attributable to | | | | | | | |
+---------------------------------+-------+--+----------+------+--+-------------+-------------+
| Equity holders of the parent | | | | | | (1,464,737) | 346,713 |
+---------------------------------+-------+--+----------+------+--+-------------+-------------+
| Minority interest | | | | | | 30,800 | (7,812) |
+---------------------------------+-------+--+----------+------+--+-------------+-------------+
| Profit/(Loss) for the period | | | | | (1,433,937) | 338,901 |
+-----------------------------------------+--+----------+------+--+-------------+-------------+
| | | | | | | | |
+---------------------------------+-------+--+----------+------+--+-------------+-------------+
| Profit/(Loss) per share | | | | | | | |
+---------------------------------+-------+--+----------+------+--+-------------+-------------+
| Basic (cents per share) | | | | | | (0.59) | 0.17 |
+---------------------------------+-------+--+----------+------+--+-------------+-------------+
| Diluted (cents per share) | | | | | | (0.59) | 0.14 |
+---------------------------------+-------+--+----------+------+--+-------------+-------------+
| |
+---------------------------------------------------------------------------------------------+
| Notes to the condensed consolidated financial statements are included on pages 11 to |
| 15. |
| * Restated - refer to note 6. |
+----------------------------+----+----+--+--+----------+------+--+-------------+-------------+
+----------------------------+--+--+-----------------------------+-+--+-+-+--+----------+-+------+--+-+---------+--------+---------+--------------+----------+-------------+
| Condensed consolidated balance sheet |
| as at 31 December 2008 |
+-----------------------------------------------------------------------------------------------------+
| | | | | | |
+----------------------------+--+--+--------------------------------------+--+----------------------------------+
| | | | |Note | | 31 | 30 June |
| | | | | | | Dec | 2008 |
| | | | | | | 2008 | $ |
| | | | | | | $ | |
+----------------------------+--+--+-------------------------------+------+--+-------------------+--------------+
| Current assets | | | | | | | |
+----------------------------+--+--+-------------------------------+------+--+-------------------+--------------+
| Cash and cash equivalents | | | | | | 5,374,508 | 6,192,933 |
+----------------------------+--+--+-------------------------------+------+--+-------------------+--------------+
| Trade and other | | | | | | 2,564,795 | 1,538,649 |
| receivables | | | | | | | |
+----------------------------+--+--+-------------------------------+------+--+-------------------+--------------+
| Other current assets | | | | | | - | 131,400 |
+----------------------------+--+--+-------------------------------+------+--+-------------------+--------------+
| Total current assets | | | | | | 7,939,303 | 7,862,982 |
+----------------------------+--+--+-------------------------------+------+--+-------------------+--------------+
| | | | | | | | |
+----------------------------+--+--+-------------------------------+------+--+-------------------+--------------+
| Non-current assets | | | | | | | |
+----------------------------+--+--+-------------------------------+------+--+-------------------+--------------+
| Other financial assets | | | | | | - | 48,107 |
+----------------------------+--+--+-------------------------------+------+--+-------------------+--------------+
| Property, plant and | | | | | | 414,088 | 378,907 |
| equipment | | | | | | | |
+----------------------------+--+--+-------------------------------+------+--+-------------------+--------------+
| Intangible assets | | | | 3 | | 13,919,749 | 9,603,341 |
+----------------------------+--+--+-------------------------------+------+--+-------------------+--------------+
| Total non-current assets | | | | | | 14,333,837 | 10,030,355 |
+----------------------------+--+--+-------------------------------+------+--+-------------------+--------------+
| Total assets | | | | | | 22,273,140 | 17,893,337 |
+----------------------------+--+--+-------------------------------+------+--+-------------------+--------------+
| | | | | | | | |
+----------------------------+--+--+-------------------------------+------+--+-------------------+--------------+
| Current liabilities | | | | | | | |
+----------------------------+--+--+-------------------------------+------+--+-------------------+--------------+
| Trade and other payables | | | | | | 3,584,644 | 2,398,240 |
+----------------------------+--+--+-------------------------------+------+--+-------------------+--------------+
| Employee benefits | | | | | | 102,393 | 72,375 |
+----------------------------+--+--+-------------------------------+------+--+-------------------+--------------+
| Derivative liability | | | | | | 118 | 243,394 |
+----------------------------+--+--+-------------------------------+------+--+-------------------+--------------+
| Provisions | | | | | | 20,212 | - |
+----------------------------+--+--+-------------------------------+------+--+-------------------+--------------+
| Total current liabilities | | | | | | 3,707,367 | 2,714,009 |
+----------------------------+--+--+-------------------------------+------+--+-------------------+--------------+
| Total liabilities | | | | | | 3,707,367 | 2,714,009 |
+----------------------------+--+--+-------------------------------+------+--+-------------------+--------------+
| Net assets | | | | | | 18,565,773 | 15,179,328 |
+----------------------------+--+--+-------------------------------+------+--+-------------------+--------------+
| | | | | | | | |
+----------------------------+--+--+-------------------------------+------+--+-------------------+--------------+
| Equity | | | | | | | |
+----------------------------+--+--+-------------------------------+------+--+-------------------+--------------+
| Issued capital | | | | 4 | | 57,369,493 | 56,877,493 |
+----------------------------+--+--+-------------------------------+------+--+-------------------+--------------+
| Reserves | | | | | | 6,843,863 | 3,166,580 |
+----------------------------+--+--+-------------------------------+------+--+-------------------+--------------+
| Accumulated losses | | | | | | (45,842,988) | (44,904,360) |
+----------------------------+--+--+-------------------------------+------+--+-------------------+--------------+
| Equity attributable to equity | | | 18,370,368 | 15,139,713 |
| holders of the parent | | | | |
+-------------------------------+--------------------------------+------+-----------------+---------------------+
| Minority interest | | | | | | 195,405 | 39,615 |
+----------------------------+--+--+-------------------------------+------+--+-------------------+--------------+
| Total equity | | | | | | 18,565,773 | 15,179,328 |
+----------------------------+--+--+-------------------------------+------+--+-------------------+--------------+
| |
+-----------------------------------------------------------------------------------------------------+
| |
| Notes to the condensed consolidated financial |
| statements are included on pages 11 to 15. |
+-----------------------------------------------------------------------------------------------------+
| Condensed consolidated statement of changes in equity |
| for the half year ended 31 December 2008 |
+--------------------------------------------------------------------------------------------------------------------------------------------------------------------------+
| | | |
+-------------------------------+--+---------------------------------------------------------------------------------------------------------------------------------------+
| | | Fully | Foreign | Option | Accumulated losses |Attributable |Minority | Total |
| | | paid | currency | premium | | to equity |interest | |
| | | ordinary | translation | reserve | | holders of | | |
| | | shares | reserve | | | the parent | | |
+ + +------------------------------------+-----------------+-----------+----------------------------+--------------+----------+-------------+
| | | $ | $ | $ | $ | $ | $ | $ |
+-------------------------------+--+------------------------------------+-----------------+-----------+----------------------------+--------------+----------+-------------+
| Balance at 1 July 2007 | | 47,203,488 | 56,863 | 2,417,089 | (43,505,544) | 6,171,896 | 30,702 | 6,202,598 |
+-------------------------------+--+------------------------------------+-----------------+-----------+----------------------------+--------------+----------+-------------+
| Exchange differences arising | | - | (170,788) | - | - | (170,788) | - | (170,788) |
| on translation of foreign | | | | | | | | |
| operations | | | | | | | | |
+-------------------------------+--+------------------------------------+-----------------+-----------+----------------------------+--------------+----------+-------------+
| Income and expense recognised | | - | (170,788) | - | - | (170,788) | - | (170,788) |
| directly in equity | | | | | | | | |
+-------------------------------+--+------------------------------------+-----------------+-----------+----------------------------+--------------+----------+-------------+
| Loss attributable to equity | | - | - | - | 346,713 | 346,713 | - | 346,713 |
| holders of the parent | | | | | | | | |
+-------------------------------+--+------------------------------------+-----------------+-----------+----------------------------+--------------+----------+-------------+
| Loss attributable to minority | | - | - | - | - | - | (7,812) | (7,812) |
| interest | | | | | | | | |
+-------------------------------+--+------------------------------------+-----------------+-----------+----------------------------+--------------+----------+-------------+
| Total recognised income and | | - | - | - | 346,713 | 346,713 | (7,812) | 338,901 |
| expense | | | | | | | | |
+-------------------------------+--+------------------------------------+-----------------+-----------+----------------------------+--------------+----------+-------------+
| Shares issued | | 3,437,288 | - | - | - | 3,437,288 | - | 3,437,288 |
+-------------------------------+--+------------------------------------+-----------------+-----------+----------------------------+--------------+----------+-------------+
| Share-based payments | | - | - | 353,411 | - | 353,411 | - | 353,411 |
+-------------------------------+--+------------------------------------+-----------------+-----------+----------------------------+--------------+----------+-------------+
| Balance at 31 December 2007* | | 50,640,776 | (113,925) | 2,770,500 | (43,158,831) | 10,138,520 | 22,890 | 10,161,410 |
+-------------------------------+--+------------------------------------+-----------------+-----------+----------------------------+--------------+----------+-------------+
| | | | | | | | | |
+-------------------------------+--+------------------------------------+-----------------+-----------+----------------------------+--------------+----------+-------------+
| Balance at 1 July 2008 | | 56,877,493 | (884,564) | 4,051,144 | (44,904,360) | 15,139,713 | 39,615 | 15,179,328 |
+-------------------------------+--+------------------------------------+-----------------+-----------+----------------------------+--------------+----------+-------------+
| Exchange differences arising | | - | 3,896,692 | - | - | 3,896,692 | - | 3,896,692 |
| on translation of foreign | | | | | | | | |
| operations | | | | | | | | |
+-------------------------------+--+------------------------------------+-----------------+-----------+----------------------------+--------------+----------+-------------+
| Income and expense recognised | | - | 3,896,692 | - | - | 3,896,692 | - | 3,896,692 |
| directly in equity | | | | | | | | |
+-------------------------------+--+------------------------------------+-----------------+-----------+----------------------------+--------------+----------+-------------+
| Profit attributable to equity | | - | - | - | (1,464,737) | (1,464,737) | - | (1,464,737) |
| holders of the parent | | | | | | | | |
+-------------------------------+--+------------------------------------+-----------------+-----------+----------------------------+--------------+----------+-------------+
| Profit attributable to | | - | - | - | - | - | 30,800 | 30,800 |
| minority interest | | | | | | | | |
+-------------------------------+--+------------------------------------+-----------------+-----------+----------------------------+--------------+----------+-------------+
| Total recognised income and | | - | - | - | (1,464,737) | (1,464,737) | 30,800 | (1,433,937) |
| expense | | | | | | | | |
+-------------------------------+--+------------------------------------+-----------------+-----------+----------------------------+--------------+----------+-------------+
| Shares issued | | 492,000 | - | - | - | 492,000 | - | 492,000 |
+-------------------------------+--+------------------------------------+-----------------+-----------+----------------------------+--------------+----------+-------------+
| Share-based payments | | - | - | 306,700 | - | 306,700 | - | 306,700 |
+-------------------------------+--+------------------------------------+-----------------+-----------+----------------------------+--------------+----------+-------------+
| Initial recognition of | | - | - | - | - | - | 124,990 | 124,990 |
| minority interest | | | | | | | | |
+-------------------------------+--+------------------------------------+-----------------+-----------+----------------------------+--------------+----------+-------------+
| Transfer between option | | - | - | (526,109) | 526,109 | - | - | - |
| premium reserve and | | | | | | | | |
| accumulated losses following | | | | | | | | |
| the lapse of options | | | | | | | | |
+-------------------------------+--+------------------------------------+-----------------+-----------+----------------------------+--------------+----------+-------------+
| Balance at 31 December 2008 | | 57,369,493 | 3,012,128 | 3,831,735 | (45,842,988) | 18,370,368 | 195,405 | 18,565,773 |
+----------------------------+--+--+-----------------------------+-+--+-+-+--+----------+-+------+--+-+---------+--------+---------+--------------+----------+-------------+
* Restated - refer to note 6
+--------------------------------+-------+--+--+--------+---+--+-------------+-------------+
| Condensed consolidated cash flow statement |
| for the half-year ended 31 December 2008 |
+------------------------------------------------------------------------------------------+
| | | | | | |
+--------------------------------+----------+--+------------+--+---------------------------+
| | | | | | | Half-year | Half-year |
| | | | | | | ended 31 | ended 31 |
| | | | | | | Dec 2008 | Dec 2007 |
| | | | | | | $ | $ |
+--------------------------------+----------+--+--------+---+--+-------------+-------------+
| Cash flows from operating | | | | | | | |
| activities | | | | | | | |
+--------------------------------+----------+--+--------+---+--+-------------+-------------+
| Receipts from operations | | | | | | 68,687 | - |
+--------------------------------+----------+--+--------+---+--+-------------+-------------+
| Payments to suppliers and | | | | | | (1,576,381) | (2,057,313) |
| employees | | | | | | | |
+--------------------------------+----------+--+--------+---+--+-------------+-------------+
| Exploration and evaluation | | | | | | (2,685,225) | (3,851,187) |
| expenditure | | | | | | | |
+--------------------------------+----------+--+--------+---+--+-------------+-------------+
| Interest received | | | | | | 74,087 | 83,171 |
+--------------------------------+----------+--+--------+---+--+-------------+-------------+
| Net cash used in operating activities | | | | | (4,118,832) | (5,825,329) |
+-------------------------------------------+--+--------+---+--+-------------+-------------+
| | | | | | | | |
+--------------------------------+----------+--+--------+---+--+-------------+-------------+
| Cash flows from investing | | | | | | | |
| activities | | | | | | | |
+--------------------------------+----------+--+--------+---+--+-------------+-------------+
| Payment for property, plant | | | | | | (30,675) | (67,845) |
| and equipment | | | | | | | |
+--------------------------------+----------+--+--------+---+--+-------------+-------------+
| Proceeds from sale of property, plant and | | | | | 2,315 | - |
| equipment | | | | | | |
+-------------------------------------------+--+--------+---+--+-------------+-------------+
| Acquisition of other investments | | | | | - | (548,767) |
+-------------------------------------------+--+--------+---+--+-------------+-------------+
| Loans to other entities | | | | | (1,195) | - |
+-------------------------------------------+--+--------+---+--+-------------+-------------+
| Net cash used in by investing activities | | | | | (29,555) | (616,612) |
+-------------------------------------------+--+--------+---+--+-------------+-------------+
| | | | | | | | |
+--------------------------------+----------+--+--------+---+--+-------------+-------------+
| Cash flows from financing | | | | | | | |
| activities | | | | | | | |
+--------------------------------+----------+--+--------+---+--+-------------+-------------+
| Proceeds from issues of equity | | | | | | 492,000 | 6,426,012 |
| securities | | | | | | | |
+--------------------------------+----------+--+--------+---+--+-------------+-------------+
| Proceeds from borrowings | | | | | | - | 28,906 |
+--------------------------------+----------+--+--------+---+--+-------------+-------------+
| Net cash provided by financing activities | | | | | 492,000 | 6,454,918 |
+-------------------------------------------+--+--------+---+--+-------------+-------------+
| | | | | | | | |
+----------------------------------------+--+--+--------+---+--+-------------+-------------+
| Net increase/(decrease) in cash and | | | | | | (3,656,387) | 12,977 |
| cash equivalents | | | | | | | |
+----------------------------------------+--+--+--------+---+--+-------------+-------------+
| | | | | |
+-------------------------------------------------------+---+--+-------------+-------------+
| Cash and cash equivalents at the beginning of the | | | 6,192,933 | 2,400,273 |
| half-year | | | | |
+-------------------------------------------------------+---+--+-------------+-------------+
| Effects of exchange rate fluctuations on cash held | | | 2,837,962 | - |
+-------------------------------------------------------+---+--+-------------+-------------+
| Cash and cash equivalents at the end of the half-year | | | 5,374,508 | 2,413,250 |
+-------------------------------------------------------+---+--+-------------+-------------+
| |
+------------------------------------------------------------------------------------------+
| |
+------------------------------------------------------------------------------------------+
| Notes to the condensed consolidated financial statements are included on pages 11 to |
| 15. |
+--------------------------------+-------+--+--+--------+---+--+-------------+-------------+
+-----+--------------------------------------------------------------------------+
| Notes to the condensed consolidated financial statements |
| for the half-year ended 31 December 2008 |
+--------------------------------------------------------------------------------+
| 1. | Statement of significant accounting policies |
+-----+--------------------------------------------------------------------------+
| | Statement of compliance |
| | The half-year consolidated financial statements are a general purpose |
| | financial report prepared in accordance with the requirements of the |
| | Corporations Act 2001, applicable accounting standards including AASB |
| | 134: Interim Financial Reporting, Accounting Interpretations and other |
| | authoritative pronouncements of the Australian Accounting Standards |
| | Board ('AASB'). Compliance with AASB 134 ensures compliance with |
| | International Financial Reporting Standard IAS 34 'Interim Financial |
| | Reporting'. |
| | This condensed half-year financial report does not include full |
| | disclosures of the type normally included in an annual financial report. |
| | Therefore, it cannot be expected to provide as full an understanding of |
| | the financial performance, financial position and cash flows of the |
| | consolidated entity as in the full financial report. |
| | It is recommended that this financial report be read in conjunction with |
| | the annual financial report for the year ended 30 June 2008 and any |
| | public announcements made by Rusina Mining NL and its subsidiaries |
| | during the half-year in accordance with continuous disclosure |
| | requirements arising under the Corporations Act 2001 and the ASX Listing |
| | Rules. |
| | |
| | The half-year consolidated financial statements were approved by the |
| | Board of Directors on 13 March 2009. |
| | Basis of preparation |
| | The half-year report has been prepared on a historical cost basis, |
| | except for derivative financial instruments and available-for-sale |
| | financial assets which are measured at fair value. Cost is based on the |
| | fair value of the consideration given in exchange for assets. The |
| | company is domiciled in Australia and all amounts are presented in |
| | Australian dollars, unless otherwise noted. |
| | For the purpose of preparing the half-year report, the half-year has |
| | been treated as a discrete reporting period. |
| | Significant accounting judgement and key estimates |
| | The preparation of interim financial reports requires management to make |
| | judgements, estimates and assumptions that affect the application of |
| | accounting policies and the reported amounts of assets, liabilities, |
| | income and expense. Actual results may differ from these estimates. |
| | In preparing this half-year report, the significant judgements made by |
| | management in applying the consolidated entity's accounting policies and |
| | the key sources of estimation uncertainty were the same as those that |
| | applied to the consolidated financial report for the year ended 30 June |
| | 2008. |
| | Adoption of new and revised accounting standards |
| | In the half-year ended 31 December 2008, the consolidated entity has |
| | reviewed all of the new and revised Standards and Interpretations issued |
| | by the AASB that are relevant to its operations and effective for annual |
| | reporting periods beginning on or after 1 July 2008. |
| | It has been determined by the consolidated entity that there is no |
| | impact, material or otherwise, of the new and revised Standards and |
| | Interpretations on its business and, therefore, no change is necessary |
| | to the consolidated entity's policies. |
| | |
+-----+--------------------------------------------------------------------------+
+-----+------------------------------------------------------+-----------+-----------+
| 2. | Profit/(loss) before income tax expense |
+-----+------------------------------------------------------------------------------+
| | | 31 | 31 |
| | | December | December |
| | | 2008 | 2007 |
| | | $ | $ |
+-----+------------------------------------------------------+-----------+-----------+
| | | | |
+-----+------------------------------------------------------+-----------+-----------+
| | The following revenue and expense items are relevant | | |
| | in explaining the financial performance for the | | |
| | half-year: | | |
+-----+------------------------------------------------------+-----------+-----------+
| | Share-based payments | (306,700) | (353,411) |
+-----+------------------------------------------------------+-----------+-----------+
| | Share of profit paid to joint venture partners | 523,824 | - |
+-----+------------------------------------------------------+-----------+-----------+
| | Realised and unrealised foreign currency gains | 1,096,876 | 459,665 |
+-----+------------------------------------------------------+-----------+-----------+
+-----+------------------------------------------------------+------------+-----------+
| 3. | Intangible assets |
+-----+-------------------------------------------------------------------------------+
| | | 31 | 30 June |
| | | December | 2008 |
| | | 2008 | $ |
| | | $ | |
+-----+------------------------------------------------------+------------+-----------+
| | | | |
+-----+------------------------------------------------------+------------+-----------+
| | Costs carried forward in respect of areas of | | |
| | interest: | | |
+-----+------------------------------------------------------+------------+-----------+
| | Exploration and evaluation - at cost | | |
+-----+------------------------------------------------------+------------+-----------+
| | Balance at beginning of half-year | 9,603,341 | 3,455,733 |
+-----+------------------------------------------------------+------------+-----------+
| | Expenditure and currency translation movement | 4,316,408 | 6,176,614 |
+-----+------------------------------------------------------+------------+-----------+
| | Amortised as cost of sales | - | (29,006) |
+-----+------------------------------------------------------+------------+-----------+
| | Carrying amount at end of period | 13,919,749 | 9,603,341 |
+-----+------------------------------------------------------+------------+-----------+
+-----+-----------------------------------+-------------+------------+-------------+-------------+
| 4. | Issued capital |
+-----+------------------------------------------------------------------------------------------+
| | | 31 December 2008 | 30 June 2008 |
+-----+-----------------------------------+--------------------------+---------------------------+
| | | No. | $ | No. | $ |
+-----+-----------------------------------+-------------+------------+-------------+-------------+
| | Fully paid ordinary shares | | | | |
+-----+-----------------------------------+-------------+------------+-------------+-------------+
| | Balance at beginning of half-year | 242,202,715 | 56,877,493 | 186,122,471 | 47,203,488 |
+-----+-----------------------------------+-------------+------------+-------------+-------------+
| | Exercise of 3,000,000 options | 3,000,000 | 492,000 | - | - |
| | exercisable at 16.40 cents | | | | |
+-----+-----------------------------------+-------------+------------+-------------+-------------+
| | Exercise of 38,623,418 listed | - | - | 38,623,418 | 7,650,522 |
| | options exercisable at 20.00 | | | | |
| | cents | | | | |
+-----+-----------------------------------+-------------+------------+-------------+-------------+
| | Exercise of 837,000 options | - | - | 837,000 | 177,863 |
| | exercisable at 21.25 cents | | | | |
+-----+-----------------------------------+-------------+------------+-------------+-------------+
| | 5,882,352 fully paid ordinary | - | - | 5,882,352 | 474,811 |
| | shares issued at 21 UK pence | | | | |
+-----+-----------------------------------+-------------+------------+-------------+-------------+
| | 3,658,537 fully paid ordinary | - | - | 3,658,537 | 289,466 |
| | shares issued at 41.00 US cents | | | | |
+-----+-----------------------------------+-------------+------------+-------------+-------------+
| | 6,458,937 fully paid ordinary | - | - | 6,458,937 | 2,315,439 |
| | shares issued at 35.84 cents | | | | |
+-----+-----------------------------------+-------------+------------+-------------+-------------+
| | 620,000 fully paid ordinary | - | - | 620,000 | 124,000 |
| | shares issued at 20.00 cents | | | | |
+-----+-----------------------------------+-------------+------------+-------------+-------------+
| | Share issue costs | - | - | - | (1,358,096) |
+-----+-----------------------------------+-------------+------------+-------------+-------------+
| | | 245,202,715 | 57,369,493 | 242,202,715 | 56,877,493 |
+-----+-----------------------------------+-------------+------------+-------------+-------------+
+-------------------------------+--------------------------------------+-----------------------+---------------+--+--+----------------------+--+-----------+----------+--+-----+--+-----------------------------+--+--------------------------+--+--+--+--+
| 5. | Segment information |
+-------------------------------+-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------+
| | |
+-------------------------------+-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------+
| | The following is an analysis of the revenue and results for the period, analysed by |
| | geographical segment, Rusina Mining Limited's primary basis of segmentation. The |
| | consolidated entity has two geographic segments, being Philippines and Australia and |
| | one business segment being mineral exploration activities. |
| | |
+-------------------------------+-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------+
| | Segment revenue |
+-------------------------------+-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------+
| | | Services | Financial | Total |
| | | | Income | |
+-------------------------------+ +-----------------------------------------------+-------------------------+-----------------------------------------------------------------------------+
| | | 2008 | 2007* | 2008 | 2007* | 2008 | 2007 |
| | | $ | $ | $ | $ | $ | $ |
+-------------------------------+--------------------------------------------------------------+---------------+-------------------------------+-----------+-------------+--------------------------------------+--------------------------------------+
| | Phillipines | 68,687 | - | 2,729 | - | 71,416 | - |
+-------------------------------+--------------------------------------------------------------+---------------+-------------------------------+-----------+-------------+--------------------------------------+--------------------------------------+
| | Australia | - | - | 1,168,234 | 83,171 | 1,168,234 | 542,836 |
+-------------------------------+--------------------------------------------------------------+---------------+-------------------------------+-----------+-------------+--------------------------------------+--------------------------------------+
| | Consolidated | | | | | 1,239,650 | 542,836 |
+-------------------------------+--------------------------------------------------------------+---------------+-------------------------------+-----------+-------------+--------------------------------------+--------------------------------------+
| | | | | | | | |
+-------------------------------+--------------------------------------------------------------+---------------+-------------------------------+-----------+-------------+--------------------------------------------------------------------+-----+
| | Segment result |
+-------------------------------+----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------+
| | | 2008 | 2007* |
| | | $ | $ |
+-------------------------------+ + + +
| | | | |
+-------------------------------+-------------------------------------------------------------------------------------------------------------------------------------------------+--------------------------------+-----------------------------------+
| | Phillipines | (1,734,987) | (619,601) |
+-------------------------------+-------------------------------------------------------------------------------------------------------------------------------------------------+--------------------------------+-----------------------------------+
| | Australia | 270,250 | 966,314 |
+-------------------------------+-------------------------------------------------------------------------------------------------------------------------------------------------+--------------------------------+-----------------------------------+
| | Profit/(loss) for the period | (1,464,737) | 346,713 |
| | | | |
+-------------------------------+-------------------------------------------------------------------------------------------------------------------------------------------------+--------------------------------+-----------------------------------+
| 6. | Correction of prior period error |
| | At 31 December 2007, the Company recognised the issue of free |
| | attaching options to shares issued in foreign currencies |
| | within equity. In accordance with accounting standards, the |
| | options should have been accounted for as derivatives as the |
| | options result in a fixed amount of shares to be issued in |
| | exchange for a variable amount of cash. |
| | The Company has reflected this requirement by restating the |
| | income statement for the comparative period. This adjustment |
| | resulted in the following effects: |
| | |
+-------------------------------+----------------------------------------------------------------------------------------------------------------------------------------------+
| | Accounts Effected Amended 31 Original 31 |
| | December 2007 December |
| | 2007 |
| | Income Statement |
| | Profit/(Loss) for the 338,901 (1,883,125) |
| | period |
| | Profit/(Loss) per 0.17 (0.94) |
| | share |
| | Balance Sheet |
| | Issued capital 50,640,776 53,629,458 |
| | Accumulated losses (43,158,831) (45,380,857) |
| | |
+-------------------------------+----------------------------------------------------------------------------------------------------------------------------------------------+
| | |
+-------------------------------+----------------------------------------------------------------------------------------------------------------------------------------------+
| 7. | Share based payments |
+-------------------------------+----------------------------------------------------------------------------------------------------------------------------------------------+
| The terms and conditions of the |
| grants made during the six months |
| ended 31 December 2008 are as |
| follows: |
+------------------------------------------------------------------------------------------------------------------------------------------------------------------------+
| | | | | |
+-------------------------------+--------------------------------------+---------------------------------------+------------------------------------------------------+-----------------------------------------+
| Series | Grant date | Number | Vesting conditions | Expiry |
| | | of | | date |
| | | instruments | | |
+-------------------------------+--------------------------------------+---------------------------------------+------------------------------------------------------+-----------------------------------------+
| 1 | 27 | 4,200,000 | Vests | 28 |
| | November | | in 3 | August |
| | 2008 | | equal | 2011 |
| | | | tranches | |
| | | | of | |
| | | | 1,400,000 | |
| | | | options | |
| | | | each, | |
| | | | when the | |
| | | | share | |
| | | | price is | |
| | | | 33.33%, | |
| | | | 66.66% | |
| | | | and 100% | |
| | | | greater | |
| | | | than the | |
| | | | exercise | |
| | | | price of | |
| | | | 20 cents | |
+-------------------------------+--------------------------------------+---------------------------------------+------------------------------------------------------+-----------------------------------------+
| 2 | 27 | 1,700,000 | Vests | 26 |
| | November | | in 2 | November |
| | 2008 | | equal | 2011 |
| | | | tranches | |
| | | | of | |
| | | | 850,000 | |
| | | | options | |
| | | | each, | |
| | | | when the | |
| | | | share | |
| | | | price is | |
| | | | 50% and | |
| | | | 100% | |
| | | | greater | |
| | | | than the | |
| | | | exercise | |
| | | | price of | |
| | | | 25 | |
| | | | cents. | |
+-------------------------------+--------------------------------------+---------------------------------------+------------------------------------------------------+-----------------------------------------+
| 3 | 8 | 4,900,000 | Vests | 7 |
| | December | | subject | December |
| | 2008 | | to | 2011 |
| | | | various | |
| | | | conditions | |
| | | | related to | |
| | | | the | |
| | | | employees | |
| | | | employment. | |
| | | | | |
+-------------------------------+--------------------------------------+---------------------------------------+------------------------------------------------------+-----------------------------------------+
| Fair value of share options and |
| assumptions for the six months ended |
| 31 December 2008: |
+------------------------------------------------------------------------------------------------------------------------------------------------------------------------+
| Series 1 | Tranche | Tranche | Tranche |
| | 1 | 2 | 3 |
+----------------------------------------------------------------------+---------------------------------------------+-------------------------------------+----------------------------------------------------------------------------------+
| | | | |
+----------------------------------------------------------------------+---------------------------------------------+-------------------------------------+----------------------------------------------------------------------------------+
| Fair value at grant | 0.10 | 0.62 | 1.17 |
| date | cents | cents | cents |
+----------------------------------------------------------------------+---------------------------------------------+-------------------------------------+----------------------------------------------------------------------------------+
| Share price on grant | 4.20 | 4.20 | 3.90 |
| date | cents | cents | cents |
+----------------------------------------------------------------------+---------------------------------------------+-------------------------------------+----------------------------------------------------------------------------------+
| Exercise price | 20 | 20 | 20 |
| | cents | cents | cents |
+----------------------------------------------------------------------+---------------------------------------------+-------------------------------------+----------------------------------------------------------------------------------+
| Expected volatility | 98% | 98% | 98% |
+----------------------------------------------------------------------+---------------------------------------------+-------------------------------------+----------------------------------------------------------------------------------+
| Risk-free interest | 3.75% | 3.75% | 3.75% |
| rate | | | |
+----------------------------------------------------------------------+---------------------------------------------+-------------------------------------+----------------------------------------------------------------------------------+
| | | | |
+----------------------------------------------------------------------+---------------------------------------------+-------------------------------------+----------------------------------------------------------------------------------+
| Series 2 | Tranche | Tranche | |
| | 1 | 2 | |
+----------------------------------------------------------------------+---------------------------------------------+-------------------------------------+----------------------------------------------------------------------------------+
| | | | |
+----------------------------------------------------------------------+---------------------------------------------+-------------------------------------+----------------------------------------------------------------------------------+
| Fair value at grant | 0.14 | 0.61 | |
| date | cents | cents | |
+----------------------------------------------------------------------+---------------------------------------------+-------------------------------------+----------------------------------------------------------------------------------+
| Share price on grant | 4.20 | 4.20 | |
| date | cents | cents | |
+----------------------------------------------------------------------+---------------------------------------------+-------------------------------------+----------------------------------------------------------------------------------+
| Exercise price | 25 | 25 | |
| | cents | cents | |
+----------------------------------------------------------------------+---------------------------------------------+-------------------------------------+----------------------------------------------------------------------------------+
| Expected volatility | 98% | 98% | |
+----------------------------------------------------------------------+---------------------------------------------+-------------------------------------+----------------------------------------------------------------------------------+
| Risk-free interest | 3.75% | 3.75% | |
| rate | | | |
+----------------------------------------------------------------------+---------------------------------------------+-------------------------------------+----------------------------------------------------------------------------------+
| 7. | Share based payments (contd) |
+-------------------------------+----------------------------------------------------------------------------------------------------------------------------------------------+
| | | | |
+----------------------------------------------------------------------+------------------------------------------+----------------------------+----------------------------------------------------------------------------------------------+
| | | | |
+----------------------------------------------------------------------+------------------------------------------+----------------------------+----------------------------------------------------------------------------------------------+
| Series 3 | Tranche | | |
| | 1 | | |
| | | | |
+----------------------------------------------------------------------+------------------------------------------+----------------------------+----------------------------------------------------------------------------------------------+
| Fair value at grant | 1.69 | | |
| date | cents | | |
+----------------------------------------------------------------------+------------------------------------------+----------------------------+----------------------------------------------------------------------------------------------+
| Share price on grant | 3.90 | | |
| date | cents | | |
+----------------------------------------------------------------------+------------------------------------------+----------------------------+----------------------------------------------------------------------------------------------+
| Exercise price | 10 | | |
| | cents | | |
+----------------------------------------------------------------------+------------------------------------------+----------------------------+----------------------------------------------------------------------------------------------+
| Expected volatility | 98% | | |
+----------------------------------------------------------------------+------------------------------------------+----------------------------+----------------------------------------------------------------------------------------------+
| Risk-free interest | 3.64% | | |
| rate | | | |
+-------------------------------+--------------------------------------+-----------------------+---------------+--+--+----------------------+--+-----------+----------+--+-----+--+-----------------------------+--+--------------------------+--+--+--+--+
+-----+---------------------------------------------------------------------------+
| 8. | Contingent liabilities |
+-----+---------------------------------------------------------------------------+
| | There has been no change in contingent liabilities since the last annual |
| | reporting date. |
| | |
+-----+---------------------------------------------------------------------------+
| 9. | Subsequent events |
| | There have been no material events subsequent to the reporting date. |
+-----+---------------------------------------------------------------------------+
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