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TAW - Tawana - Interim Financial Report For The Half-Year Ended 30 June 2007
Tawana Resources NL
(Incorporated in Australia)
Registration number ACN 085 166 721
Share Code on the JSE Limited : TAW ISIN: AU000000TAW7
Share Code on the Australian Stock Exchange: TAW & ISIN: AU000000TAW7
("Tawana" or "the company")
ABN 69 085 166 721
Interim Financial Report for the half-year ended 30 June 2007
CONTENTS
Page
Corporate directory 2
Directors` report 3
Auditor`s independence declaration 9
Interim financial report
Consolidated income statement 10
Consolidated balance sheet 11
Consolidated statement of recognised income and 12
expenses
Consolidated cash flow statement 13
Notes to the consolidated financial statements 14
Directors` declaration 19
Independent auditor`s review report to the members 20
This interim financial report does not include all the notes of the type
normally included in an annual financial report. Accordingly, this report
is to be read in conjunction with the annual report for the year ended 31
December 2006 and any public announcements made by Tawana Resources Limited
during the interim reporting period in accordance with the continuous
disclosure requirements of the Corporations Act 2001.
CORPORATE DIRECTORY
DIRECTORS
Brian Phillips (Non-Executive Chairman)
Wolfgang Marx (Managing Director)
Euan Luff (Non-Executive Director)
COMPANY SECRETARY
Edward Derrick Ehmke
REGISTERED OFFICE
60 Wilson Street
South Yarra
Melbourne Vic 3141
Telephone: (03) 9863 5222
Facsimile: (03) 9863 5288
Email: wolf.marx@tawana.com.au
Website www.tawana.com.au
AUDITORS
PricewaterhouseCoopers
G.P.O.Box 1331L
Melbourne, Victoria, 3001
SHARE REGISTRY
Computershare Investor Services Pty Ltd
Yarra Falls
452 Johnston Street
Abbotsford, Victoria, 3067
STOCK EXCHANGE LISTING
Home Exchange is the Australian Stock Exchange
Secondary Listing is on the Johannesburg Stock Exchange
ASX/JSE Code: Shares TAW
ASX/JSE Code: Options TAWO
Directors` report
The Directors of Tawana Resources N.L submit herewith the interim financial
report for the half-year ended 30 June 2007. In order to comply with the
provisions of the Corporations Act 2001, the Directors report as follows:
Directors
Details of the Directors of the company in office at any time during or
since the end of the half year and at the date of this report are:
Wolfgang Marx
Brian Phillips
Euan Luff
Review of operations
The company continued with its active exploration program, concentrating on
diamond exploration and evaluation. A summary of the major activities are as
follows:
Projects in South Africa
KAREEVLEI WES PROJECT, KIMBERLEY REGION, SOUTH AFRICA
(Operated by Tawana; 74% owned by Tawana and 26% owned by Seven Falls)
In April 2007 the Company was granted a new order Mining Right over the
Project by the Department of Minerals and Energy.
Tawana has re-located its 25tph dense media separation plant (DMS) to
Kareevlei Wes and construction of the plant and infrastructure was nearing
completion in August 2007. The Company is planing to excavate 10,000 tonnes
of material from each of the KV1 and KV2 kimberlites and process this
material in the DMS on site. The aim of this trial mining program is to
define a JORC compliant resource for the two kimberlites.
RIVERTON KIMBERLITE PROJECT, KIMBERLEY REGION, SOUTH AFRICA
(Operated by Tawana; Tawana earning 70%,Taormina Mining (Pty) Ltd diluting
to 30%)
The Company entered into a joint venture with Taormina Mining (Pty) Limited
("Taormina"), an unlisted South African company, to prospect and evaluate a
kimberlite situated 25 km north of Kimberley, South Africa.
During July 2007 the Company re-located its 10tph DMS plant to Riverton for
the 2000 tonne bulk sampling program. Excavation of material from the
kimberlite commenced in August 2007 and on 3 September the Company announced
that larger than expected diamonds had been recovered during the first week
of processing of the initial bulk sample collected.
The announcement stated that 18 diamonds weighing 9.07 carats had been
recovered, which included a 3.12ct pale yellow diamond, a 1.31ct diamond and
a 1.08ct diamond. The average size of the diamonds was 0.50 carats, an
unusually large average size for diamonds from a kimberlite.
The diamonds were recovered from 232 tonnes of kimberlite which had been
partially processed. 70 tonnes of this sample was classified as oversize and
still needed to be crushed and re-processed.
The diamonds were recovered from the minus 16 mm plus 1.0 mm fractions of
kimberlite sampled. The kimberlite material was processed in the Company`s
DMS plant with diamond recovery by Flowsort x-ray plant and grease table.
LEXSHELL PROJECT, SOUTH AFRICA
(Tawana 44% and operator /Guma Resources 44%/ Lexshell 12% revenue share)
The project is held under a Mining Right by Lexshell 366 Mining (Pty)
Limited ("the Holder"). Tawana/Guma have jointly entered into a Contractor`s
Agreement with the Holder which will enable Tawana to assess the economic
potential of the deposit and if warranted mine the diamonds on behalf of the
joint venture partners. Costs will be shared on a 50:50 basis with Guma. The
Holder will retain a 12% share of revenue after State royalties and cost of
sales.
The section of the Vaal/Harts River alluvials in which this project is
located is noted for the prolific production of large, high quality
diamonds. Mining has taken place here for about 100 years and the area still
hosts one of the largest alluvial diamond mines in the world. Tawana will
commence work on the assessment of the deposit during the second half of
2007.
DANIEL KIMBERLITE PROJECT, LIME ACRES DISTRICT, SOUTH AFRICA
(Operated by Tawana; 22.2% owned by Tawana, 51.8% owned by BHP Billiton and
26% owned by Seven Falls)
The Daniel Kimberlite Project ("DKP") is a joint venture between Tawana, BHP
Billiton and Seven Falls, and encompasses an area 30kms in radius centered
on the De Beers owned Finsch Diamond Mine. Utilisation of Falcon technology
has led to the identification of kimberlitic targets situated in the Lime
Acres District of South Africa.
Percussion drilling of some of these targets was conducted during 2004 and
2005, which resulted in the discovery of three new kimberlites (A1, A2, and
A95).
Following the discovery of kimberlites Al, A2 and A95, the Falcon data was
reviewed, resulting in a reassessment of all of the previously identified
targets and the selection of several of these for drill testing. During 2006
the accessible targets were drilled. No new kimberlites were identified but
samples of drill chips collected from holes which failed to reach target
depth or were considered worthy of further investigation were submitted for
analysis. Kimberlitic indicator minerals were recovered from a number of
these targets and these will be followed up during 2007.
In early 2007 Prospecting Right Applications were submitted over additional
targets. Drilling of the additional targets will be conducted when the
Prospecting Rights are granted. Tawana and BHP Billiton will fund this
drilling program pro rata to their respective interests in the project.
CARTER BLOCK PROJECT, LIME ACRES DISTRICT, SOUTH AFRICA
(Operated by Tawana; Tawana earning 40%, Kimberley Consolidated Mines Pty
Ltd diluting to 60%)
Tawana Resources is in joint venture with Kimberley Consolidated Mines
("KCM") to prospect and evaluate kimberlites situated in the Carter Block,
close to the De Beers operating Finsch Mine, in South Africa.
Tawana is able to earn 40% equity in each individual Falcon and aero-
magnetic target by identifying kimberlite through drilling and conducting a
bulk sampling program. Expenditure on further evaluation work will be
contributed by KCM and Tawana on a pro-rata basis. Tawana will manage the
project.
The joint venture`s initial focus was the 14 BHP Billiton-generated Falcon
targets, and four aero-magnetic survey targets. These were drill tested
during July 2007 and samples of drill cuttings have been sent to the
Company`s Melbourne laboratory for analyses. Results are expected in Q3
2007.
TAWANA ALLUVIALS, LIME ACRES DISTRICT, SOUTH AFRICA
(Tawana 70% and operator/Seven Falls 30 %)
Negotiations with third parties to participate in the continuation of the
economic assessment of the Eastern Gravels and Feeder Channel alluvial
diamond deposits have not reached a concluded position. While several
proposals have been considered, none has provided a satisfactory commercial
basis for an agreement. As every drill hole and test pit within both areas
resulted in diamonds being identified, the Company will continue to seek
parties who are interested in testing the economics of large-scale mining.
Projects in Botswana
ORAPA DIAMOND PROJECT, BOTSWANA
(100% owned by Tawana)
In April 2007 the Company was granted a new prospecting licence over an area
of approximately 57 square kilometers, covering 8 kimberlites in the Orapa
kimberlite field in Botswana. Applications for this Prospecting Licence were
submitted by a number of companies on a competitive basis. The Prospecting
Licence is held in the name of Seolo Pty Ltd, a 100% owned Botswana
registered subsidiary of Tawana.
The Company plans to undertake a program of evaluation of the kimberlites
which will entail detailed geophysics, trenching and drilling to establish
the size of the kimberlites, followed by bulk sampling to determine the
grade and diamond quality of the kimberlites. Initial indications are that
the diamondiferous BK24 is in excess of 3 hectares in surface area and at
least one other kimberlite has a surface area of 2 hectares. No previous
bulk sampling has been conducted on 7 of the eight kimberlites. An initial
review of available airborne geophysical data has indicated the possible
presence of at least one new kimberlite in the Prospecting Licence area.
Detailed ground-based geophysical surveys have been conducted over BK 19,
BK20 and BK21. These surveys appear to confirm the airborne data. Drill
testing of the kimberlites will be conducted during the second half of 2007.
BOROLONG DIAMOND PROJECT, BOTSWANA
(100% owned by Tawana)
Exploration licences in the prospective north eastern part of Botswana,
between the city of Francistown and the Orapa kimberlite province, were
granted to Tawana during early 2004. The licences cover areas which are
known to be geologically favourable for kimberlite intrusions, and which
were known to include sites where kimberlitic indicator minerals had been
recovered by earlier explorers.
Kimberlitic indicator minerals were recovered from soil samples collected
over identified targets during 2004, 2005 and 2006. Such targets were
identified from existing magnetic and previous sampling data. Additional
follow up sampling is planned to take place during 2007.
Projects in Australia
PILBARA REGIONAL EXPLORATION, WESTERN AUSTRALIA
(Tawana 66.6% and operator /De Beers Australia Exploration 33.3%)
Helicopter-supported regional reconnaissance and follow-up sampling within
the 17 granted De Beers tenements was conducted during 2006. This program
included reconnaissance stream sampling and the follow-up of anomalies
generated from aeromagnetic surveys and heavy mineral anomalies from
previous De Beers sampling. The 266 samples collected during the program
were processed and examined in the Melbourne Laboratory. Results indicate
that two new kimberlites are located in the Blacktop East area some 5km
north east of the Blacktop 01 kimberlite.
The kimberlitic indicator minerals recovered from the Blacktop East area
display chemical signatures indicative of diamondiferous kimberlites.
The Company is reviewing alternatives to progress this project.
FLINDERS ISLAND/VENUS BAY PROJECTS, SOUTH AUSTRALIA
(Tawana 80%, Orogenic Exploration 20%, Flinders Diamonds earning 70%)
In April 2007 ASX listed Flinders Diamonds Limited (FDL), Tawana and
Orogenic Exploration Pty Ltd (OEPL) executed an agreement which allows FDL
to earn, over two four-year periods, a 70% interest in ELs 2927, Venus Bay,
and 3200, Flinders Island. The equity can be earned in two stages, 50% for
an expenditure of $1 million with Tawana and OEPL diluting to 30% and 20%
respectively. Thereafter FDL has the option to earn a further 20% by
spending a further $1 million on the project, with Tawana and OEPL diluting
to 15% each. FDL may withdraw after spending $250,000. OEPL is free carried
until a decision to mine and FDL can remain as manager during its sole
contributor period.
TIMBER CREEK PROJECT, NORTHERN TERRITORY
(Tawana 100%)
No further work has been conducted on this project. The Company has applied
for a Retention Licence over the TC-01 kimberlite, which will enable Tawana
to retain title over this diamond deposit until diamond prices improve
sufficiently to improve the economic viability of the kimberlite.
WHIRLWIND PLAINS PROJECT, NORTHERN TERRITORY
(Tawana 100%)
No further work has been conducted on this project and the Exploration
Licence over the area has been relinquished.
Half-year result
The operating loss of the consolidated entity for the half year after income
tax of $nil was $3,469,991 (comparative half year, income tax of $nil and
operating loss $3,562,160).
The directors do not recommend the payment of a dividend nor has one been
recommended or paid since the end of the previous financial year.
Significant transactions
There were no significant transactions during the half-year.
Auditor`s independence declaration
In accordance with the requirements of section 307C of the Corporations Act
2001, the Auditors have provided a signed Auditor Independence Statement for
30 June 2007. This is detailed on page 12 of this report.
This report is made in accordance with a resolution of the Board of
Directors.
Wolf Marx
Director
Signed at Melbourne on this 12th day of September 2007.
Auditor`s Independence Declaration
As lead auditor for the review of Tawana Resources N.L for the half year
ended 30 June 2007, I declare that to the best of my knowledge and belief,
there have been:
- no contraventions of the auditor independence requirements of the
Corporations Act 2001 in relation to the review; and
- no contraventions of any applicable code of professional conduct in
relation to the review.
This declaration is in respect of Tawana Resources N.L and the entities it
controlled during the period.
Tim Goldsmith Melbourne
Partner 12 September 2007
PricewaterhouseCoopers
Consolidated income statement for the half-year ended 30 June 2007
Notes Half-year Half-year
2007 2006
$ $
Revenue from continuing 4 94,455 25,273
operations
Other income 4 - 247,118
Corporate costs (132,018) (141,574)
Depreciation (164,177) (514,340)
Employee benefits expense (323,671) (233,468)
Exploration expenses written (2,584,195) (2,279,442)
off
Foreign exchange loss - (48,083)
Impairment of assets (14,844) (8,110)
Finance costs (17,891) -
Travel costs (56,070) (68,241)
Other expenses 5 (271,580) (541,293)
Loss before income tax expense (3,469,991) (3,562,160)
Income tax expense - -
Loss from continuing (3,469,991) (3,562,160)
operations after income tax
expense attributable to
members of the parent
Earnings per share for loss Cents Cents
attributable to the ordinary
equity holders of the company:
Basic earnings per share (0.040) (0.051)
Diluted earnings per share (0.040) (0.051)
The above consolidated income statement should be read in conjunction with
the accompanying notes.
Consolidated balance sheet as at 30 June 2007
June December
2007 2006
$ $
ASSETS
Current assets
Cash and cash equivalents 1,241,351 2,655,399
Trade and other receivables 104,426 561,231
Inventories 87,455 94,181
1,433,232 3,310,811
Non-current assets
Receivables 76,333 51,291
Property, plant and equipments 1,075,067 1,357,547
Exploration expenditure 9,964,238 12,037,202
11,115,638 13,460,040
Total assets 12,548,870 16,770,851
LIABILITIES
Current liabilities
Trade and other payables 118,196 480,664
Provisions 88,068 71,760
206,264 552,424
Non-current liabilities
Provisions 47,629 51,291
47,629 51,291
Total liabilities 253,893 603,715
Net assets 12,294,977 16,167,136
EQUITY
Contributed equity 32,544,335 32,544,335
Reserves (1,886,809) (1,484,642)
Accumulated losses (18,362,549) (14,892,557)
Total equity 12,294,977 16,167,136
The above consolidated balance sheet should be read in conjunction with the
accompanying notes.
Consolidated statement of recognised income and expenses for the half-year
ended 30 June 2007
Notes Half-year Half-year
2007 2006
$ $
Exchange rate differences (423,365) 351,827
on translation of foreign
operations
Net income recognised (423,365) 351,827
directly in equity
Loss for the half year (3,469,991) (3,562,160)
Total recognised income and (3,893,356) (3,210,333)
expense for the half year
attributable to members of
the parent
The above consolidated statement of recognised income and expenses should be
read in conjunction with the accompanying notes.
Consolidated cash flow statement for the half-year ended 30 June 2007
Notes Half-year Half-year
2007 2006
$ $
Cash flows from operating
activities
Receipts from customers 29,564 110,083
(incl. GST)
Interest received 64,891 25,573
Payments to suppliers and (608,871) (889,762)
employees (incl. GST)
Net cash (outflow) from (514,416) (754,106)
operating activities
Cash flows from investing
activities
Payments for exploration (511,231) (839,790)
activity
Proceeds from sale of 34,964 1,893,572
property plant and equipment
Purchase of property, plant -
& equipment
Net cash inflow from (476,267) 1,053,782
investing activities
Cash flows from financing
activities
Proceeds from the issue of - 6,800,314
shares
Net cash inflow from - 6,800,314
financing activities
Net increase/(decrease) in (990,683) 7,099,990
cash & cash equivalents
Cash and cash equivalents at 2,655,399 1,340,481
the beginning of the half-
year
Effects of exchange rate (423,365) (1,758,980)
changes on cash and cash
equivalents
Cash and cash equivalents at 1,241,351 6,681,491
the end of the half-year
The above consolidated cash flow statement should be read in conjunction
with the accompanying notes.
Notes to the financial statements 30 June 2007
1. Basis of preparation of the half-year report
This general purpose financial report for the interim half-year reporting
period ended 31 December 2007 has been prepared in accordance with
Accounting Standard AASB 134: Interim Financial Reporting and the
Corporations Act 2001.
This interim financial report does not include all the notes normally
included in an annual financial report. Accordingly, this report is to be
read in conjunction with the annual report for the year ended 31 December
2006 and any public announcements made by Tawana Resources N.L. during the
interim reporting period in accordance with the continuous disclosure
requirements of the Corporations Act 2001.
The accounting policies adopted are consistent with those of the previous
financial year and corresponding interim reporting period.
2. Going concern
The consolidated entity has incurred a loss of $3,469,991 for the half-year
ended 30 June 2007, has a net surplus of working capital of $1,226,968 and a
net asset balance of $12,294,977. The interim financial report has been
prepared on the basis of going concern which contemplates continuity of
normal business activities and the realisation of assets and settlement of
liabilities in the ordinary course of business. The Directors believe this
basis to be appropriate.
The ability of the company to continue as a going concern is dependent of
obtaining additional funding to finance ongoing activities, including future
production, mine development and exploration activities. The budget for
2007 indicates that there are sufficient funds for all planned expenditure
in the year. Management`s plan include seeking a joint venture partner to
fund certain exploration projects and/or raising additional funds through
equity placements. If the company is unable to implement its plans, it
could be forced to cease operations. The accompanying interim financial
report does not include any adjustments that might be necessary if the
company is unable to continue as a going concern.
3. Segment information
The economic entity operated predominantly in the mineral exploration
industry in South Africa, Botswana and within Australia.
Primary Reporting - Geographic Segments
Australia Africa
Half-Year Half-year
2007 2006 2007 2006
$ $ $ $
Operating Revenue
External
sales 31,272 18,022 63,183 7,251
Intersegment
sales - - 113,212 138,641
Other revenue - 212,577 - 34,541
Total Segment
revenue 31,272 230,599 176,395 180,433
Operating Revenue contd
Eliminations Consolidated Entity
Half-year Half-Year
2007 2006 2007 2006
$ $ $ $
External sales - - 94,455 25,273
Intersegment sales (113,212) (138,641) - -
Other revenue - - - 247 118
Total Segment revenue(113,212) (138,641) 94,455 272,391
Australia Africa
Half-year Half-Year
$ $ $ $
2007 2006 2007 2006
Segment Expenses
Segment expenses (3,215,727) (3,033,915) (348,719) (800,636)
Intersegment
expenses (113,212) (138,641) - -
Unallocated
expenses - - - -
Total Segment
expense (3,328,939) (3,172,556) (348,719) (800,636)
Loss before
income tax (3,297,667) (2,941,957) (172,324) (620,203)
Segment Expenses cont.
Eliminations Consolidated Entity
Half-year Half-year
2007 2006 2007 2006
$ $ $ $
Segment expenses - - (3,564,446) (3,834,551)
Intersegment
Expenses 113,212 138,641 - -
Unallocated
expenses - - - -
Total Segment
expense 113,212 138,641 (3,564,446)(3,834,551)
Loss before
income tax - - (3,469,991) (3,562,160)
4. Revenue and other income
Half-year Half-year
2007 2006
$ $
Revenue from continuing operations
Interest income 64,891 25,273
Laboratory income 29,564 -
94,455 25,273
Other income
Profit on sale of assets - 137,035
Other - 110,083
- 247,118
5. Expenses
Half-year Half-year
2007 2006
$ $
Other expenses from continuing
operations
Administrative costs 124,243 413,554
Auditors remuneration 49,724 28,456
Laboratory expenses 17,361 57,266
Listing fees - 1,750
Occupancy costs 76,236 40,267
Other expenses 4,016 -
271,580 541,293
6. Dividends
The directors do not recommend the payment of a dividend nor has one been
recommended or paid since the end of the previous financial year.
7. Equity securities issued
Listed options converted Half-year Half-year
2007 2006
Options Options
Balance at start of the half-year 22,344,144 21,869,144
Converted to ordinary shares - -
Granted during the half-year - -
Balance at end of half-year 22,344,144 21,869,144
Unlisted options granted Half-year Half-year
2007 2006
Options Options
Balance at start of half- year 1,390,000 -
Granted during the half-year 1,000,000 -
Balance at end of half-year 2,390,000 -
8. Contingent liabilities
(a) An Indemnity Guarantee of $7,500 is held by the Department of Business,
Industry & Resource Development for Tawana Resources N.L for the Timber
Creek Project mining tenement held in the Northern Territory.
(b) Lease Commitments
In order to maintain current rights of tenure to exploration tenements,
the parent company is required to outlay lease rentals and to meet the
minimum expenditure requirements of the Mines Departments. These
obligations are subject to renegotiation upon expiry of the exploration
leases or when application for a mining licence is made and are not
provided for in the accounts.
There is also a five year lease on the premises occupied by the parent
entity at 60 Wilson Street, South Yarra, signed on 25 April 2006.
2007 2006
$ $
No later than one year 735,963 984,000
Later than one year but not 634,693 1,580,66
later than five years 7
Later than five years - -
9. Events occurring after the balance sheet date
On 11 September Tawana completed a placement of five million shares at
15cents per share with attached options to institutional investors to
raise $750,000. The Options are exercisable at 15cents on or before 11
September 2009.
The Directors are not aware of any other matters or circumstances that
have arisen subsequent to balance date that has significantly affected
or may significantly affect the operations of the economic entity, the
results of those operations or the state of affairs of the economic
entity subsequent to the half-year ended 30 June 2007.
In the directors` opinion:
the financial statements and notes set out on pages 13 to 20 are in
accordance with the Corporations Act 2001, including:
- complying with Accounting Standards, the Corporations Regulations 2001
and other mandatory professional reporting requirements; and
- giving a true and fair view of the consolidated entity`s financial
position as at 30 June 2007 and of its performance for the half-year ended
on that date; and
- there are reasonable grounds to believe that Tawana Resources N.L. will
be able to pay its debts as and when they become due and payable
This declaration is made in accordance with a resolution of the directors.
On behalf of the directors
Wolf Marx
Director
Signed at Melbourne on this 12th day of September 2007.
Independent auditor`s review report to the members of
Tawana Resources N.L
Report on the half-year financial report
We have reviewed the accompanying half-year financial report of Tawana
Resources N.L., which comprises the balance sheet as at 30 June 2007, and
the income statement, statement of recognised income and expense and cash
flow statement for the half-year ended on that date, other selected
explanatory notes and the directors` declaration for the Tawana Resources
N.L. Group (the consolidated entity). The consolidated entity comprises
Tawana Resources N.L. (the company) and the entities it controlled during
the half-year.
Directors` responsibility for the half-year financial report
The directors of the company are responsible for the preparation and fair
presentation of the half-year financial report in accordance with Australian
Accounting Standards (including the Australian Accounting Interpretations)
and the Corporations Act 2001. This responsibility includes designing,
implementing and maintaining internal control relevant to the preparation
and fair presentation of the half-year financial report that is free from
material misstatement, whether due to fraud or error; selecting and applying
appropriate accounting policies; and making accounting estimates that are
reasonable in the circumstances.
Auditor`s responsibility
Our responsibility is to express a conclusion on the half-year financial
report based on our review in accordance with Auditing Standards on Review
Engagements ASRE 2410 Review of an Interim Financial Report Performed by the
Independent Auditor of the Entity, in order to state whether, on the basis
of the procedures described, we have become aware of any matter that makes
us believe that the financial report is not in accordance with the
Corporations Act 2001 including: giving a true and faire view of the
consolidated entity`s financial position as at 30 June 2007 and it
performance for the half-year ended on that date; and complying with
Accounting Standard AASB 134 Interim Financial Reporting and the
Corporations Regulations 2001. As the auditor of Tawana Resources N.L.,
ASRE 2410 requires that we comply with the ethical requirements relevant to
the audit of the annual financial report.
A review of a half-year financial report consists of making enquiries,
primarily of persons responsible for financial and accounting matters, and
applying analytical and other review procedures. It also includes reading
the other information included with the financial report to determine
whether it contains any material inconsistencies with the financial report.
A review is substantially less in scope than an audit conducted in
accordance with Australian Auditing Standards and consequently does not
enable us to obtain assurance that we would become aware of all significant
matters that might be identified in an audit. Accordingly, we do not
express an audit opinion.
For further explanation of a review, visit our website
http://www.pwc.com/au/financialstatementaudit.
While we considered the effectiveness of management`s internal controls over
financial reporting when determine the nature and extent of our procedures,
our review was not designed to provide assurance on internal controls.
Our review did not involve an analysis of the prudence of business decisions
made by directors or management.
Independence
In conducting our review, we have complied with the independence requirement
of the Corporations Act 2001.
Conclusion
Based on our review, which is not an audit, we have not become aware of any
matters that makes us believe that the half-year financial report of Tawana
Resources N.L. is not in accordance with the Corporations Act 2001
including:
- giving a true and fair view of the consolidated entity`s financial
position at 30 June 2007 and of its performance for the half-year ended on
that date, and;
- Complying with Accounting Standard AASB 134 Interim Financial Reporting
and Corporations Regulations 2001.
PricewaterhouseCoopers
Tim Goldsmith Melbourne
Partner 12 September 2007
Sponsor
PricewaterhouseCoopers Corporate Finance (Pty) Ltd
Date: 12/09/2007 09:49:35 Supplied by www.sharenet.co.za
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