Wrap Text
TAW - Tawana Resources NL - Financial report for the half-year ended
30 June 2011
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 NL
ABN 69 085 166 721
FINANCIAL REPORT FOR THE HALF-YEAR ENDED 30 JUNE 2011
This information should be read in conjunction with the
31 December 2010 Annual Repor
Corporate Directory 3
Directors` Report 4
Auditor`s Independence Declaration 6
Statement of Comprehensive Income 7
Statement of Financial Position 8
Statement of Changes in Equity 9
Statement of Cash Flows 10
Notes to the Financial Statements 11
Directors` Declaration 14
Independent Auditor`s Report to the Members 15
Directors
Mr Warwick Grigor Non-Executive Chairman
Mr Euan Luff Non-Executive Director
Mr Julian Babarczy Non-Executive Director
Mr Matthew Bowles Non-Executive Director
Joint Company Secretaries
Mr Winton Willesee
Mr Aaron Finlay
Principal Place of Business
and Registered Office
Suite 25
145 Stirling Highway
Nedlands WA 6009
Contact Details
Website: www.tawana.com.au
Tel: +61 8 9389 3140
Fax: +61 8 9389 3199
Solicitors to the Company
Wilmoth Field Warne
Level 13
440 Collins Street
Melbourne VIC 3000
Share Registry
Computershare Investor Services Pty Ltd
GPO Box 2975
Melbourne VIC 3001
Tel: +61 3 9415 5000
Fax: +61 3 9473 2500
Auditor
William Buck
Level 1
465 Auburn Road
Hawthorn East VIC 3123
Stock Exchange
Australian Securities Exchange
ASX Code: TAW
JSE Limited
JSE Code: TAW
Auditor`s Independence Declaration
Your Directors present their report on the Company and its controlled
entities ("consolidated entity") for the half-year ended 30 June 2011.
Directors
The names of the Directors in office at any time during or since the end of
the half-year are as follows. All Directors have been in office for this
entire period unless otherwise stated.
Mr Warwick Grigor - Non-Executive Chairman
Mr Euan Luff - Non-Executive Director
Mr Julian Babarczy - Non-Executive Director
Mr Harry Hill - Non-Executive Director (resigned 27 May 2011)
Mr Matthew Bowles - Non-Executive Director (appointed 30 May 2011)
Operating results
The loss of the consolidated entity for the half-year ended 30 June 2011
after providing for income tax amounted to $333,198 (30 June 2010:
$553,571).
No dividends were declared or paid during the half-year ended 30 June 2011.
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 gold in West Africa, 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.
The company also continues to expand its interests in evaluating other
mineral resources.
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 Perth, Australia.
Corporate Activities and Subsequent Events
The Company announced, on 19 January 2011 that the Strategic Alliance with
Gryphon Minerals Limited had been formally executed by both Boards and two
highly prospective mineral permits had been issued to Gryphon, allowing
Tawana to start exploration activities before the onset of the wet season
in June 2011. Following shareholder approval at a general meeting of
shareholders on 24 February 2011, 100 million fully paid ordinary shares in
the Company were issued to Gryphon as consideration on the acquisition as
part of this Strategic Alliance.
Exploration activities continued on the Nimba and Lofa licenses; two
mineral permits issued in December 2010 and formally approved to Gryphon
Minerals Ltd (ASX: GRY) on 23rd February 2011. The Lofa License covers 596
Km2 and is along strike from the 1.52 Moz New Liberty gold deposit and the
Nimba License covers 995 Km2 and is adjacent to the 5.0 Moz Ity gold mine.
Both licenses host highly prospective Archean greenstone belts that have
had no modern day exploration and have confirmed artisanal workings.
On 16 March 2011, the Company announced that it had appointed BGF Equities
as Lead Manager in the placement of 100 million shares at an issue price of
4.5 cents to raise $4.5 million before costs. The funds raised by the
placement will be used primarily to advance exploration activities in
Liberia, to fund initial drilling on targets defined and on working capital
on Tawana`s West African growth plans.
During the period Mr Matthew Bowles was appointed a Non-Executive Director
of the Company and the Company recruited a Senior Geologist, Rockson Coffie
accountable for field programmes and target generation in Liberia as well
as review and assessment of prospective opportunities throughout West
Africa
On 13 July 2011, the Company announced it had secured binding exclusive
rights to perform due diligence on a significant, highly prospective
Birimian land package in Sinoe County, South-Eastern Liberia referred to as
the Sinoe Project. The Sinoe Project area covers 400 Km2 within arguably
one of the most prospective Birimian gold structures currently being
explored in Liberia; the Dugbe Shear. On 16 August 2011, the Company
announced the successful completion of the due diligence and completion of
the acquisition of the Sinoe Project. Refer Note 7 of the Financial
Statements.
Auditor`s independence declaration
The lead auditor`s independence declaration for the half-year ended 30 June
2011 has been received and is attached to this Directors` Report.
Signed in accordance with a resolution of the Board of Directors.
Mr Warwick Grigor
Non-executive Chairman
Dated at Melbourne this 13th day of September 2011
Consolidated Statement of Comprehensive Income
For the half-year ended 30 June 2011
Note 30 June 2011 30 June 2010
$ $
Revenue 253,564 27,855
Corporate costs (269,871) (387,807)
Depreciation (1,948) (60,634)
Employee benefits expense (204,496) (126,822)
Exploration expenses written off (11,652) -
Other expenses (68,413) (6,163)
Loss before income tax expense (302,816) (553,571)
Income tax expense - -
Net loss for the period from continuing (302,816) (553,571)
operations
Loss from discontinued operations after tax (30,382) -
Net loss for the period attributable to (333,198) (553,571)
Tawana Resources NL
Other comprehensive income
Loss on translation of foreign operations (833,101) (87,363)
Other comprehensive income for the period, (833,101) (87,363)
net of tax
Total comprehensive loss for the period (1,166,299) (640,934)
attributable to Tawana Resources NL
Earnings per share from continuing and
discontinuing operations
Basic loss (cents) (0.04) (0.13)
Diluted loss (cents) (0.04) (0.13)
Earnings per share from continuing
operations
Basic loss (cents) (0.04) (0.13)
Diluted loss (cents) (0.04) (0.13)
The above Consolidated Statement of Comprehensive Income should be read in
conjunction with the accompanying notes.
Consolidated Statement of Financial Position
As at 30 June 2011
Note 30 June 31 December
2011 2010
$ $
Current assets
Cash and cash equivalents 2 4,766,870 835,470
Trade and other receivables 68,773 48,945
Other financial assets 2,937,851 2,960,354
Inventories 52,680 75,641
Total current assets 7,826,174 3,920,410
Non-current assets
Trade and other receivables 56,711 42,323
Investment in associate 16,640 16,640
Property, plant and equipment 147,206 186,892
Exploration expenditure 7,153,905 2,923,147
Total non-current assets 7,374,462 3,169,002
Total assets 15,200,636 7,089,412
Current liabilities
Trade and other payables 96,484 148,726
Provisions 15,884 6,875
Total current liabilities 112,368 155,601
Non-current liabilities
Provisions 47,562 27,387
Total non-current liabilities 47,562 27,387
Total liabilities 159,930 182,988
Net assets 15,040,706 6,906,424
Equity
Contributed equity 4(a) 45,032,860 36,482,279
Reserves (364,960) (281,859)
Accumulated losses (29,627,194) (29,293,996)
Total equity 15,040,706 6,906,424
The above Consolidated Statement of Financial Position should be read in
conjunction with the accompanying notes.
Consolidated Statement of Changes in Equity
For the half-year ended 30 June 2011
Issued Reserves Accumulated Total
capital losses
$ $ $ $
Balance at 1 January 36,482,279 (281,859) (29,293,996) 6,906,424
2011
Loss for the period - - (333,198) (333,198)
Other comprehensive - (833,101) - (833,101)
income for the
period
Total comprehensive - (833,101) (333,198) (1,166,299)
loss for the period
Transactions with
owners in their
capacity as owners
Shares issued 9,556,931 - - 9,556,931
Share issue costs (1,006,350) - - (1,006,350)
Options issued - 750,000 - 750,000
Balance at 30 June 45,032,860 (364,960) (29,627,194) 15,040,706
2011
Balance at 1 January 35,356,374 (2,397,152) (27,079,599) 5,879,623
2010
Loss for the period - - (553,571) (553,571)
Other comprehensive - (87,363) - (87,363)
income for the
period
Total comprehensive - (87,363) (553,571) (640,934)
loss for the period
Transactions with
owners in their
capacity as owners
Shares issued 1,041,670 - - 1,041,670
Share issue costs (137,037) - - (137,037)
Options issued - 27,573 - 27,572
Balance at 30 June 36,261,007 (2,456,942) (27,633,170) 6,170,895
2010
The above Consolidated Statement of Changes in Equity should be read in
conjunction with the accompanying note
Consolidated Statement of Cash Flows
For the half-year ended 30 June 2011
Note 30 June 2011 30 June 2010
$ $
Cash flows from operating activities
Receipts from customers 16,639 8,896
Payments to suppliers and employees (806,515) (467,772)
Interest received 70,328 18,959
Net cash flows used in operating activities (719,548) (439,917)
Cash flows from investing activities
Payments for plant and equipment (10,727) -
Proceeds from sale of plant and equipment 36,393 6,671
Proceeds from sale of discontinued 14,604 -
operation
Payments for exploration (176,830) (20,215)
Net cash flows used in investing activities (136,560) (13,544)
Cash flows from financing activities
Proceeds from issue of shares 5,050,000 1,041,670
Capital raising costs (256,350) (137,037)
Net cash from financing activities 4,793,650 904,633
Net increase in cash and cash equivalents 3,937,542 451,172
Cash and cash equivalents at beginning of 835,470 348,609
period
Effects of exchange rates on cash holdings (6,142) (75)
in foreign currencies
Cash and cash equivalents at end of period 2 4,766,870 799,706
The above Consolidated Statement of Cash Flows should be read in
conjunction with the accompanying notes.
Notes to the Financial Statements
For the half-year ended 30 June 2011
1.
Basis of preparation
The half-year consolidated financial statements are general purpose
financial statements prepared in accordance with the requirements of
the Corporations Act 2001, Australian Accounting Standard AASB 134:
Interim Financial Reporting, Australian Accounting Interpretations and
other authoritative pronouncements of the Australian Accounting
Standards Board ("AASB").
It is recommended that these financial statements be read in
conjunction with the annual financial report for the year ended 31
December 2010 and any public announcements made by Tawana Resources NL
and its controlled entities during the half-year in accordance with
continuous disclosure requirements arising under the Corporations Act
2001.
The half-year financial statements do not include full disclosures of
the type normally included in annual financial statements.
The same accounting policies and methods of computation have been
followed in these interim financial statements as were applied in the
most recent annual financial statements except for the adoption of the
following new and revised Accounting Standards, as noted below:
Reporting Basis and Conventions
The half-year financial statements have been prepared on an accruals
basis and are based on historical costs modified by the revaluation of
selected non-current assets, financial assets and financial
liabilities for which the fair value basis of accounting has been
applied.
2. Cash and cash equivalents
For the purposes of the half-year statement of cash flows, cash and
cash equivalents comprised of the following:
30 June 31 December
2011 2010
$ $
Cash at bank and in hand 4,746,870 815,470
Cash on short-term deposit 20,000 20,000
4,766,870 835,470
3. Dividends
No dividend has been declared or paid during the half-year or the
previous corresponding period.
The Company does not have any franking credits available for current
or future years as it is not in a tax paying position.
4. Contributed equity
(a) Movements in share capital
30 June 31 December
2011 2010
$ $
Ordinary shares, fully paid 45,032,860 36,482,279
Movement in ordinary shares on issue
Number $
Balance at beginning of period 601,455,755 36,482,279
Shares issued 255,173,288 9,556,931
Share issue costs - (1,006,350)
Balance at end of period 856,629,043 45,032,860
(b) Share options
Exer- Expiry Balance at Issued Exercis Expire Balance at
cise date beginning during ed d or end of
price of period the during forfei period
period the ted
period during
the
period
Number Number Number Number Number
Listed $0.10 1 Apr 11 13,240,053 - - (13,24 -
option 0,053)
s
Unlist $0.35 30 Nov 11 1,420,000 - - - 1,420,000
ed
option
s
Unlist $0.10 17 Jan 14 6,750,000 - - - 6,750,000
ed
option
s
Unlist $0.07 18 Jun 12 4,000,000 - - - 4,000,000
ed
option
s
Unlist $0.10 17 Jan 13 6,000,000 - - - 6,000,000
ed
option
s
Unlist $0.07 17 Jan 13 6,750,000 - - - 6,750,000
ed
option
s
Unlist $0.01 23 Feb 13 50,000,000 - - - 50,000,000
ed
option
s
Unlist $0.01 31 Jul 12 50,000,000 - (30,000 - 20,000,000
ed ,000)
option
s
Unlist $0.01 30 Jul 13 50,000,000 - - - 50,000,000
ed
option
s
Unlist $0.03 9 Sep 12 5,000,000 - - - 5,000,000
ed
option
s
Unlist $0.03 9 Sep 14 5,000,000 - - - 5,000,000
ed
option
s
Unlist $0.01 8 Mar 14 - 50,000 - - 50,000,000
ed ,000
option
s
198,160,05 50,000 (30,000 (13,24 204,920,000
3 ,000 ,000) 0,053)
5. Segment information
The Board of Directors has considered the operating segments standard
but does not currently have operating segments at this time. As the
Company operates wholly in one business segment, being mineral
exploration and in one geographical segment, being Africa, the Company
has not identified and therefore, not disclosed, any segment
information on the basis of the internal reports being provided to the
chief decision maker, which is the board as a whole.
6. Contingent assets and liabilities
The consolidated entity does not have any material contingent assets
or liabilities other than as disclosed in this report.
7. Subsequent events
On 13 July 2011, the Company announced it had secured binding
exclusive rights to perform due diligence on a significant, highly
prospective Birimian land package in Sinoe County, South-Eastern
Liberia referred to as the Sinoe Project. The Sinoe Project area
covers 400 Km2 within arguably one of the most prospective Birimian
gold structures currently being explored in Liberia; the Dugbe Shear.
On 16 August 2011, the Company announced the successful completion of
the due diligence and completion of the acquisition of the Sinoe
Project.
The Company and Global Mineral Investments LLC (`GMI`), a private
Liberian company signed a binding Heads of Agreement for an option to
purchase outright the mineral exploration licence over the Sinoe
Project held by GMI. Under the terms of the agreement the Company has
the option to purchase outright the mineral exploration licence after
meeting the following terms and conditions:
1. US$10,000 Option payment to secure exclusivity - PAID
2. US$40,000 Execution payment on successful due diligence - PAID
3. US$50,000 Execution payment within 6 months of the commencement
of exploration or announcing to market a significant exploration
target
The Company is to fund exploration during the first year after which
it has the right to purchase the licence outright or walk away
unencumbered. Should the Company choose to purchase the licence
outright it does so at the following terms:
1. US$350,000 payment and 6 million shares in the Company
2. US$1 million payment at announcement of 1 Moz JORC compliant
resource
3. Additional US$1 million payments for each additional 500 Koz JORC
compliant resource announced to market up to a maximum JORC
compliant resource of 2.5 Moz
4. US$5 million payment at pouring first gold from a mining
operation within the licence area.
Independent Auditor`s review report to the members of
Tawana resources nl can be found on the company`s website.
Auditor`s Independence declaration under section
307c of the Corporations Act 2001 to the directors
Of Tawana Resources NL can be found on the company`s website.
For further information contact:
Winton Willesee
Joint Company Secretary
Tawana Resources NL
13 September 2011
Sponsor
PricewaterhouseCoopers Corporate Finance (Pty) Ltd
Date: 13/09/2011 11:18:46 Supplied by www.sharenet.co.za
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