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TAW - Tawana - Interim Financial Report for the half year ended 30 June 2009
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 Limited: TAW
ISIN: AU000000TAW7
("Tawana" or "the Company")
TAWANA RESOURCES N.L.
ABN: 69 085 166 721
Appendix 4D
Interim Financial Report for the half year ended 30 June 2009
(previous corresponding period: half year ended 30 June 2008)
To be read in conjunction with the 31 December 2008 Annual Report.
In compliance with Listing Rule 4.2A
DIRECTORS` REPORT
Your directors present their report on the consolidated entity consisting of
Tawana Resources N.L. and the entities it controlled at the end of, or during,
the half year ended 30 June 2009.
Directors
The following persons were directors of Tawana Resources N.L. during the whole
of the half-year and up to the date of this report:
Euan Luff Chairman
Stirling Horne Non-Executive Appointed 31 July
Director 2009
Harry Hill Non-Executive Appointed 21 August
Director 2009
Wolf Marx Managing Director Retired 31 January
2009
Brian Phillips Non-Executive Resigned 27 July 2009
Director
Neil Barrie Executive Chairman Resigned 31 July 2009
Nonkqubela Mazwai Non-Executive Resigned 21 August
Director 2009
Review of Operations
Background
Tawana was incorporated as a public company on 16 November 1998 in Australia.
Operating through its various subsidiaries, the Company is involved in the
exploration for, and evaluation of, diamondiferous kimberlites and alluvials,
primarily in South Africa and Botswana. The Company`s objective is to establish
viable ore reserves and turn such projects into profitable operations.
Recently the company has expanded it`s interests in evaluating other resources,
primarily manganese, gold, copper, coal and iron ore. To date none of the
projects investigated met the company`s criteria.
Tawana listed on ASX (as a primary listing) in April 2001 and JSE (as a
secondary listing) in November 2005. The Company`s head office is located in
Melbourne, Australia.
A brief overview of Tawana`s diamond projects, which are all located in
prospective areas, follow.
Current Status of Projects in South Africa
Kareevlei Wes Project, Kimberley Region
(Operated by Tawana; 100% owned by Tawana.)
On 27 October 2008 the Directors of Tawana announced the conclusion of an
agreement with Risk Free Investments 2 (Proprietary) Limited t/a Agio Diamond
Investments ("Agio") for the sale of a 26% interest in Tawana`s Kareevlei
Project for Rand 12Million (Approximately A$1.7million at current exchange
rates). The above mentioned payment was not forthcoming on the due date. In
December 2008 Tawana commenced legal proceedings in the South African Supreme
Court for full payment of the amount in question. The Company has obtained a
judgment against Agio and is presently trying to execute upon the judgment.
The Company is pursuing additional sources of funding.
The Company is also holding discussions with different groups regarding possible
joint ventures on this Project.
Tawana Alluvial Project, Lime Acres District, Kimberley Region
(Operated by Tawana; 100% owned by Tawana).
The Tawana Alluvial Project area encompasses two alluvial deposits, the Feeder
Channel and the Eastern Gravels, which extend from 300 meters from the De Beers
owned Finsch Mine for a distance of approximately 18 kilometres from the mine.
These deposits resulted from the discovery by Tawana during early exploration of
targets generated by BHP Billiton.
The proposed next stage for the Tawana Alluvial Project is a large scale
operating trial mining. As a precursor to this, it is proposed to investigate
the most effective methods to extract diamonds from the channels and to
determine the most effective processing methods. The Company has not activated
this proposal and will not do so until it has the required funds. The Company
has limited expenditure commitments to maintaining this tenure. The Company is
also trying to find a joint venture partner to conduct the trial mining work on
this tenement.
St. Augustines Kimberlite Project, Kimberley Region
(Operated by Tawana; Tawana 30% equity in Kimberley Diamond Mining and
Exploration (formerly Vecto Trade 436 (Pty) Ltd)
It was a condition of the Access Agreement granting Vecto Trade 436 (Pty) Ltd
(now called Kimberley Diamond Mining and Exploration) ("KDME") access rights to
St Augustine that if no kimberlite intersected in the Southern section of the St
Augustine area, that KDME would abandon that section and concentrate exploration
efforts on the Northern section of the area.
The results of Phase 2 drilling show that no kimberlite intersects in the
Southern section, and accordingly KDME is contractually bound to withdraw from
the Southern Section.
Prospecting activities over the northern portion of the Prospecting Right will
continue when the Company has the required funds in order to evaluate the area
associated with the old St Augustine kimberlite mine area.
Lexshell Alluvial Project, Kimberley Region
(Tawana 50% and operator / Guma Resources 50%)
The project is held under a Mining Right by Lexshell 366 Mining (Pty) Limited
("the Holder"). Tawana and Guma have 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. The Holder will retain a 12% share of revenue after State royalties
and cost of sales.
The project is located on a palaeo-channel of the Vaal/Harts River adjacent to
established alluvial diamond mines.
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.
No work has been conducted on this project in recent times.
Current Status of Projects in Botswana
Orapa Diamond Project
(100% owned by Tawana)
In April 2007 the Company was granted a new prospecting licence over an area of
approximately 57 square kilometres, 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 Orapa kimberlite field is located in north eastern Botswana, and includes
the Orapa, Letlhakane and Damtshaa diamonds mines, which produce in excess of 13
million carats of diamonds per year. The Orapa kimberlite field is one of the
largest diamondiferous kimberlite fields in the world, containing 79 known
kimberlites, of which the majority has been proven to be diamondiferous. Orapa
is one of the largest producing kimberlites in the world and is 113 hectares in
surface area.
In 2008 Tawana entered into a joint venture agreement with Nowak Investment
(Pty) Limited to explore the Company`s prospects.
On 7 May 2009 Tawana terminated the joint venture with Nowak Investment (Pty)
Limited. Since that time Tawana has been endeavouring to find a joint venture
partner to continue exploration of the Project.
Current Status of Projects in Australia
Tawana currently has no active involvement in exploration in Australia. The
status of projects in Australia is as follows:
Flinders Island / Venus Bay Projects, South Australia
(80% owned by Tawana and 20% owned by Orogenic Exploration/Flinders Mines
Limited (formerly Flinders Diamonds Ltd earning in)
Flinders Island is situated 28 km west of the Eyre Peninsula of South Australia.
Tawana and Orogenic entered into a joint venture agreement with Flinders Mines
Limited (FMS) in April 2007 under the terms of which FMS is able to earn a 70%
interest in the project by spending $2 million on the combined Flinders Island
and Eyre Peninsula Projects. In the event that FMS earns 70% interest in the
project, Tawana`s interest will reduce to 15%.
No field work was conducted on the Flinders Island Project in the last 6 months.
Similar to Venus Bay, better understanding of the sub-surface geology is
considered critical to explain previously recovered kimberlite indicator
minerals and diamonds.
Eyre Peninsula Project (Venus Bay area), South Australia
(80% owned by Tawana and 20% owned by Orogenic Exploration/Flinders Mines
Limited (formerly Flinders Diamonds Ltd ("FMS") earning in.)
Tawana and Orogenic entered into a joint venture agreement with FMS in April
2007 under the terms of which FMS is able to earn a 70% interest in the project
by spending $2 million on the combined Flinders Island and Eyre Peninsula
Projects. In the event that FMS earns 70% interest in the project, Tawana`s
interest will reduce to 15%.
In the Venus Bay area a review of the previous exploration results has provided
a significant improvement on the understanding of the sub-surface geology, and
which now highlights an untested area on the western side of the exploration
licence.
No field work was conducted on the Flinders Island Project in the last 6 months.
Similar to Venus Bay, better understanding of the sub-surface geology is
considered critical to explain previously recovered kimberlite indicator
minerals and diamonds.
Auditors` Independence Declaration
A copy of the auditors` independence declaration as required under section 307C
of the Corporations Act 2001 is set out on the following page.
This report is made in accordance with a resolution of directors.
Euan Luff
Chairman
Melbourne
11-September-2009
AUDITOR`S INDEPENDENCE DECLARATION
11th September 2009
The Board of Directors
Tawana Resources NL
Suite 1, 1233 High Street
ARMADALE VIC 3143
Dear Board Members
AUDITOR`S INDEPENDENCE DECLARATION
UNDER SECTION 307C OF THE CORPORATIONS ACT 2001 TO THE DIRECTORS OF TAWANA
RESOURCES NL
In accordance with section 307C of the Corporations Act 2001, I am pleased to
provide the following declaration of independence to the directors of Tawana
Resources NL.
As lead audit partner for the review of the financial report of Tawana Resources
NL for the half-year ended 30 June 2009, I declare that to the best of my
knowledge and belief, there have been no contraventions of:
i) the auditor independence requirements of the Corporation Act 2001 in
relation to this review; or
ii) any applicable code of professional conduct in relation to this review.
Yours sincerely
Jeffrey Luckins
Director
Webb Audit Pty Ltd
Appendix 4D for the Half Year Ended 30 June 2009
Results for announcement to the market
Current Reporting Period - Half year Ended 30 June 2009
Previous Reporting Period - Half year Ended 30 June 2008
Revenues Increased 32.62% to $58,077
Loss after tax
attributable to members Decreased 62.47% to ($476,256)
Net loss for the half year
attributable to members Decreased 62.47% to ($476,256)
Dividends (distribution)
Amount Franked Amount
per Security per Security
Final dividend n/a n/a
Previous
corresponding period n/a n/a
Net Tangible Asset per Security (cents per security)
As at 30 June 2009 5.15
As at 30 June 2008 5.30
Record date for determining entitlements to the dividend, (in the case of a
trust, distribution n/a
Explanation of the above information:
Refer to the Directors` Report - Review of Operations.
CONSOLIDATED INCOME STATEMENT
FOR THE HALF YEAR ENDED 30 JUNE 2009
Consolidated Entity
Notes 30 June 2009 30 June 2008
$ $
Revenue 16,903 29,232
Other income 41,174 14,559
Auditors remuneration (61,563) (24,545)
Corporate costs (177,794) (174,713)
Depreciation (94,628) (97,715)
Employee benefits expense (97,961) (246,536)
Exploration expenses - (531,023)
impaired
Finance costs (4,043) -
Occupancy costs (65,527) (102,205)
Other expenses (32,817) (135,986)
PROFIT/(LOSS) BEFORE (476,256) (1,268,932)
INCOME TAX
INCOME TAX EXPENSE - -
PROFIT/(LOSS) ATTRIBUTABLE (476,256) (1,268,932)
TO MEMBERS OF THE PARENT
ENTITY
Cents Cents
Loss per share for loss from
attributable to the ordinary
equity holders of the company:
Basic loss per share (0.418) (1.115)
Diluted loss per share (0.418) (1.115)
The accompanying notes form part of these financial
statements.
CONSOLIDATED BALANCE SHEET AS AT 30 JUNE 2009
Consolidated Entity
Note 30 June 2009 31 December
2008
$ $
CURRENT ASSETS
Cash and cash equivalents 2,104 18,090
Trade and other 37,644 30,996
receivables
Inventories 76,151 81,268
TOTAL CURRENT ASSETS 115,899 130,354
NON-CURRENT ASSETS
Trade and other 82,490 82,095
receivables
Investments in associates 16,640 16,640
Property, plant and 396,185 495,222
equipment
Exploration & evaluation 6,257,014 5,883,355
TOTAL NON-CURRENT ASSETS 6,752,329 6,477,312
TOTAL ASSETS 6,868,228 6,607,666
CURRENT LIABILITIES
Trade and other payables 571,147 424,389
Borrowings 200,000
-
Provisions 35,096 40,575
TOTAL CURRENT LIABILITIES 806,243 464,964
NON-CURRENT LIABILITIES
Trade and other payables 80,689
-
Provisions 28,555 28,299
TOTAL NON-CURRENT 28,555 108,988
LIABILITIES
TOTAL LIABILITIES 834,798 573,952
NET ASSETS 6,033,430 6,033,714
EQUITY
Issued capital 34,945,032 34,708,732
Reserves (2,330,633) (2,570,305)
Accumulated losses (26,580,969) (26,104,713)
TOTAL EQUITY 6,033,430 6,033,714
The accompanying notes form part of these financial
statements.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE HALF YEAR ENDED 30 JUNE 2009
Consolidated Entity
Issued Reserve Accumulated Total
Capital Losses
$ $ $ $
Balance at 33,339,335 (2,148,733) (22,278,557) 8,912,045
31 December
2007
Shares 555,903 555,903
issued net
of costs
Options 198,991 198,991
issued
Net loss (1,268,932) (1,268,932)
for half
year
Currency (2,046,695) (2,046,695)
translation
differences
Balance at 33,895,238 (3,996,437) (23,547,489) 6,351,312
30 June
2008
Shares 813,494 813,494
issued net
of costs
Net loss (2,557,224) (2,557,224)
for half
year
Currency 1,426,132 1,426,132
translation
differences
Balance at 34,708,732 (2,570,305) (26,104,713) 6,033,714
31 December
2008
Shares 236,300 - - 236,300
issued net
of costs
Options - 110,098 - 110,098
issued
Net loss - - (476,256) (476,256)
for half
year
Currency - 129,574 - 129,574
translation
differences
Balance at 34,945,032 (2,330,633) (26,580,969) 6,033,430
30 June
2009
The accompanying notes form part of these financial
statements.
CONSOLIDATED CASH FLOW STATEMENT FOR THE
HALF YEAR ENDED 30 JUNE 2009
Consolidated Entity
30 June 2009 30 June 2008
$ $
CASH FLOWS RELATED TO OPERATING
ACTIVITIES
Receipts from customers 10,961 42,492
Payments to suppliers and (135,203) (566,036)
employees
Interest received 5,942 2,981
NET OPERATING CASH FLOWS (118,300) (520,563)
CASH FLOWS RELATED TO INVESTING
ACTIVITIES
Proceeds from sales of plant and 41,174 31,409
equipment
Payment for exploration & (137,359) (263,372)
evaluation expenses
NET INVESTING CASH FLOWS (96,185) (231,963)
CASH FLOWS RELATED TO FINANCING
ACTIVITIES
Proceeds from Director`s loan - 25,467
Proceeds from issues of - 555,903
securities
Proceeds from borrowings 200,000 -
Share money received held in - 80,000
trust
NET FINANCING CASH FLOWS 200,000 661,370
NET INCREASE/(DECREASE) IN CASH (14,485) (91,156)
AND CASH EQUIVALENTS
Cash and cash equivalents at the 18,090 149,862
beginning of the half year
Effects of exchange rate changes (1,501) (1,298)
on cash and cash equivalents
CASH AND CASH EQUIVALENTS AT THE 2,104 57,408
END OF THE HALF YEAR
The accompanying notes form part of these financial
statements.
NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2009
Note 1. Basis of Preparation
The general purpose financial report for the interim half year reporting period
ended 30 June 2009 has been prepared in accordance with Accounting Standard AASB
134 Interim Financial Reporting and the Corporations Act 2001.
This half year financial report does not include all notes of the type normally
included in an annual financial report and therefore cannot be expected to
provide as full an understanding of the financial performance, financial
position and financing and investing activities of the entity as the full
financial report.
Accordingly, this report is to be read in conjunction with the annual report for
the year ended 31 December 2008 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 the most recent Annual
Financial Report for the year ended 31 December 2008.
Accounting Standards include Australian equivalents to International Financial
Reporting Standards (A-IFRS). Compliance with A-IFRS ensures that the financial
statements and notes of the entity comply with International Financial Reporting
Standards.
Note 2. Dividends
The company resolved not to declare any dividends in the half year ended 30 June
2009.
Note 3. Segment Information
Geographical Segments
30 June 2009 Australia Africa
Half-year Half-year
$ $
30 June 2009
Segment sales 5,848 11,055
Other revenue - 41,174
External Sales 5,848 52,229
Expenses
Segment expenses (306,354) (170,847)
Total segment expenses (306,354) (170,847)
Loss before income tax (300,506) (118,618)
30 June 2008 Australia Africa
Half-year Half-year
$ $
Revenue
External Sales 26,416 2,816
Intersegment sales - 177,158
Other revenue 14,559 -
Total Revenue 40,975 179,974
Expenses
Segment expenses (1,100,982) (211,741)
Intersegment expenses (177,158) -
Total segment expenses (1,278,140) (211,741)
Loss before income tax (1,237,165) (31,767)
Geographical Segments (Continued)
30 June 2009 Eliminations Total
Half-year Half-year
$ $
30 June 2009
Segment sales - 16,903
Other revenue - 41,174
External Sales - 58,077
Expenses
Segment expenses (57,132) (534,333)
Total segment expenses (57,132) (534,333)
Loss before income tax (57,132) (476,256)
30 June 2008 Eliminations Total
Half-year Half-year
$ $
Revenue
External Sales - 29,232
Intersegment sales (177,158) -
Other revenue - 14,559
Total Revenue (177,158) 43,791
Expenses
Segment expenses - (1,312,723)
Intersegment expenses 177,158 -
Total segment expenses 177,158 (1,312,723)
Loss before income tax - (1,268,932)
Note 4. Contingent Liabilities and Assets
At report date claims from suppliers and former employees for past services
remain unresolved, however Tawana has provided for claims and is confident that
no further adjustment to the accounts is necessary.
Otherwise there has been no change in contingent liabilities and assets since
the last annual reporting date.
Note 5. Issued Capital & Options Reserve
30 June 2009 31 December 2008
No. $ No. $
Issued and Paid Up Capital
Fully Paid 117,138,854 34,945,032 113,763,134 34,708,732
Ordinary
Shares
(Issued
Capital)
Options Reserve
Options over 42,430,053 546,529 22,930,053 436,431
Fully Paid
Ordinary
Shares
(Reserves)
Total 35,491,561 35,145,163
During the half year ended 30 June 2009, the following movements
in equity occurred:
Shares
3,375,720 Issued to BEE partner to satisfy South African BEE
requirements
Options
19,500,000 Issued to Directors and Consultants
Note 6. Events Subsequent to Reporting Date
On 10 August 2009 the Company announced it had entered into funding arrangements
with Cygnet Capital Pty Ltd (Cygnet) on the following terms:
1. Placement of $500,000 by issuing 100,000,000 shares at $0.005 to
Sophisticated Investors (s708) to be split into two tranches; and
2. Underwriting of a rights issue to raise $1,085,694 by way of a 1:1 non-
renounceable rights issue at $0.005.
On 25 August 2009 the first tranche of 17,560,414 placement shares was issued
within the Company`s 15% capacity to raise $87,802, with the balance of the
placement shares being subject to shareholder approval at a meeting to be
convened shortly.
It is intended that the rights issue will occur shortly following completion of
the second tranche of the placement shares, and subscribers to the placement
will be entitled to participate in the rights issue. New capital raised will be
applied towards rationalizing existing assets and reviewing new opportunities.
Cygnet will be granted 50 million options with a period of 3 years and an
exercise price of 1 cent per share as part of its fee on completion of the
rights issue.
On 27 July 2009 Mr Brian Phillips resigned as Non-executive Director. On 31 July
2009 Mr Neil Barrie resigned as Executive Chairman and Mr Sterling Horne was
appointed as Non-executive Director. On 21 August 2009 Mr Harry Hill was
appointed as Non-executive Director and Mrs Nonkqubela Mazwai resigned as Non-
executive Director.
Otherwise no matters or circumstances have arisen since the end of the reporting
period, not otherwise disclosed in this report, which significantly affected or
may significantly affect the operations of the economic entity, the result of
those operations or the state of affairs of the economic entity in subsequent
financial years.
Note 7. Going Concern
For the half-year ended 30 June 2009, Tawana Resources N.L. incurred a loss of
$476,256, a net decrease of cash flows of $14,485 and had a negative working
capital balance of $690,344. As a result of these matters, there is significant
uncertainty whether the group will continue as a going concern and therefore,
whether it will realise its assets and settle its liabilities and commitments in
the normal course of business and at the amounts stated in the financial report.
This financial report has been prepared on a going concern basis on the
assumption that the group is dependent on the successful sourcing of additional
funds. Subsequent to balance date, as disclosed in Note 6 Events Subsequent to
Reporting Date the Company has entered into funding arrangements that will
enable it to raise more capital. These arrangements still remain subject to
regulatory approval. For these reasons, the Directors believe that the
assumption of a going concern basis in the preparation of this financial report
is appropriate. The financial report does not include any adjustments relation
to the recoverability or classification of recorded assets, or to the amounts of
classification or liabilities that might be necessary should the group not be
able to continue as a going concern.
DIRECTORS` DECLARATION
The directors` of the company declare that:
1. The financial statements and notes, as set out on pages 7 to 13:
(a) comply with Accounting Standard AASB 134: Interim Financial Reporting
and the Corporations Regulations; and
(b) give a true and fair view of the economic entity`s financial position
as at 30 June 2009 and of its performance for the half-year ended on
that date.
2. In the directors` opinion there are reasonable grounds to believe that the
company will be able to pay its debts as and when they become due and payable.
This declaration is made in accordance with a resolution of the Board of
Directors.
Euan Luff
Chairman
Dated 11-September-2009
INDEPENDENT AUDITOR`S REVIEW REPORT TO THE MEMBERS OF TAWANA RESOURCES NL
ACN 008 728 425
Report on the Interim Financial Report
We have reviewed the accompanying half-year financial report of Tawana Resources
NL and controlled entities, which comprises the balance sheet as at 30 June
2009, income statement, statement of changes in equity and cash flow statement
for the half-year ended on that date, the accounting policies, other selected
explanatory notes and the directors` declaration.
Director`s Responsibility for the Interim Financial Report
The directors of the company are responsible for the preparation and fair
presentation of the interim financial report in accordance with the Australian
Accounting Standards (including the Australian Accounting Interpretations) and
the Corporations Act 2001. This responsibility includes establishing and
maintaining internal controls 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. We conducted our review in accordance with Auditing
Standard 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 to believe that the interim financial report is not in accordance with
the Corporations Act 2001 including: giving a true and fair view of the
consolidated entity`s financial position as at 30 June 2009 and its performance
for the half-year ended on that date and complying with Accounting Standard
AASB134 Interim Financial Reporting and the Corporations Regulations 2001. As
the auditor of Tawana Resources NL and controlled entities, ASRE 2410 requires
that we comply with the ethical requirements relevant to the audit of the annual
financial report.
A review of a half-year financial report consists of making enquiries, primarily
of persons responsible for financial and accounting matters, and applying
analytical and other review procedures. A review is substantially less in scope
than an audit conducted in accordance with Australian Auditing Standards and
consequently does not enable us to obtain assurance that we would become aware
of all significant matters that might be identified in an audit. Accordingly, we
do not express an audit opinion.
Independence
In conducting our review, we have complied with applicable independence
requirements of the Corporations Act 2001.
Conclusion
Based on our review, which is not an audit, we have not become aware of any
matter that makes us believe that the half-year financial report of Tawana
Resources NL and controlled entities is not in accordance with the Corporations
Act 2001, including:
(i) giving a true and fair view of the consolidated entity`s financial
position as at 30 June 2009 and of its performance for the half-year
ended on that date; and
(ii) complying with AASB134: Interim Financial Reporting and the
Corporations Regulations 2001.
Inherent Uncertainty Regarding Continuation as a Going Concern
Without qualification to the opinion expressed above, attention is drawn to the
following matter. As a result of the matters described in Note 7 to the
financial statements on page 13, there is significant uncertainty whether the
consolidated group will be able to continue as a going concern and therefore
whether it will realise its assets and extinguish its liabilities in the normal
course of business and at the amounts stated in the financial report.
Jeffrey Luckins
Director
Webb Audit Pty Ltd
Dated in Melbourne, Australia on this 11th day of September 2009
Sponsor
PricewaterhouseCoopers Corporate Finance (Pty) Ltd
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