Wrap Text
Interim Results for the six months ended 30 June 2012
African Eagle Resources plc
Incorporated in England and Wales
(Registration number 3912362)
(AIM share code: AFE AIM ISIN: GB0003394813)
(JSE share code: AEA JSE ISIN: GB0003394813)
(“African Eagle” or the “Company”)
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2012
African Eagle today announces its interim results for the six months ended 30 June 2012, which are also
available on the Company’s website: www.africaneagle.co.uk.
Operational Highlights
Dutwa Development
Strongly positive metallurgical test work on Wamangola FeSi ore which has significant potential to improve
project economics
- Simple ore beneficiation prior to processing results in potential for higher grade lower volume ore feed to
process plant
- Targeting an increase in nickel feed grade from 1% to up to 2%
- Opportunity to reduce plant throughput capacity while achieving the equivalent metal output
- Leach characteristics of the beneficiated ore superior to run-of-mine ore, requiring less reagent
consumption
- Dutwa Resource upgraded with 94% promoted to Indicated category
- Total JORC resource 107 million tonnes (“Mt”) at 0.92% nickel containing 984,000 tonnes metal
- JORC Indicated Resource category at 101Mt at 0.93% nickel
- 70% of Resource comprises FeSi ore
- ESIA progressing well
Corporate Development
- Board restructuring complete and new team fully integrated
- David Newbold appointed as Finance Director
- Ambassador Rupia appointed Non-Executive Director
- Cutfield Freeman & Co appointed as Financial Adviser to examine, develop and implement financing
strategies for the development of the Dutwa project
- Binding agreement reached for the disposal of remaining Zambian copper assets to Elephant Copper
- Cash on hand, as at 30 June 2012, was £10.6 million
Commenting on the results, African Eagle’s Chairman, Chris Pointon said “I am pleased to report solid progress
has been made across all of the key work streams on the Dutwa Bankable Feasibility Study (“BFS”). We recently
reported very exciting and positive metallurgical test work results on the Wamangola Ferruginous Siliceous ("FeSi")
ore which represent a real break-through for the project and have the potential to substantially improve the project
economics.
The metallurgical results are of such significance that the Board has decided to allow more time for an expanded
test programme on the transition ore and ore from the adjacent Ngasamo deposit in the fourth quarter of 2012, with
the pilot plant run now scheduled to occur in 2013. The BFS is now due to be completed in the second half of 2013.
We have also increased our levels of confidence in the quality and size of the Dutwa resource and recently
announced a revised JORC Resource with 94% of the total 107 million tonnes (“Mt”) being classified in the
Indicated category. The FeSi ore comprises 70% of the total resource.
On the corporate front we have appointed Ambassador Paul Rupia as a Non-Executive Director and David
Newbold as Finance Director. Ambassador Rupia brings over 49 years of experience in Tanzania’s diplomatic and
civil service and will add vital in-country experience and contacts to the Board. David has an excellent track record
in the financing, structuring, risk mitigation, governance and operation of natural resource businesses globally. We
already have a first-class project management team, and I believe that with the addition of Paul and David the
Board and management now have the skills and experience required to ensure African Eagle can successfully
develop the Dutwa Project.”
For further information, please visit www.africaneagle.co.uk or contact:
African Eagle Resources plc
Trevor Moss, CEO
Alex Buck
+44 20 7248 6059
Canaccord Genuity Limited (NOMAD)
Rob Collins or Andrew Chubb
+ 44 20 7523 8000
Ocean Equities Limited (Joint Broker)
Guy Wilkes
+44 20 7786 4370
Russell & Associates, Johannesburg
Charmane Russell or Marion Brower
+27 11 880 3924
Sponsor
Merchantec Capital
28 September 2012
About African Eagle
African Eagle Resources plc is a nickel development and exploration company listed on the London AIM (AFE) and
Johannesburg AltX (AEA) stock exchanges. The Company's flagship project is the Dutwa Nickel project in
Tanzania located about 25km south of Lake Victoria and 110km east of Mwanza within greenstone gold belts
which host many of Tanzania's operating and developing gold mines. The Company is currently conducting a
Bankable Feasibility Study, which is due for publication during 2013.
CHAIRMAN’S STATEMENT
Dear Shareholder,
It gives me great pleasure to present my first report to you as Chairman of your Company and to have the
opportunity to tell you about the excellent progress we are making in advancing the Dutwa Nickel Project through
development and towards production.
We have made significant progress on the Dutwa Bankable Feasibility Study (“BFS”) and recently reported very
exciting and positive metallurgical test work results. We think these results represent a real break-through for the
project and have the potential to substantially improve the project economics.
The outcome demonstrates the potential to upgrade the ore, doubling the nickel grade of the run-of-mine ore, from
around 1% to 2%, before processing through the atmospheric tank leaching circuit, by a simple screening process,
and without the need for fine grinding. This, if confirmed by the balance of the test work programme, means that
between half and one-third of the run-of-mine ore can be rejected prior to processing, the rejected portion being
below cut-off grade. Hence the capacity of the capital-intensive processing plant, which will extract the nickel from
the concentrated ore, can be correspondingly smaller than previously planned for the same nickel output. Although
capital cost estimates will only be available when the BFS is complete, we are confident that they will be strongly
competitive. Furthermore, the upgraded ore leaches more rapidly, and with lower sulphuric acid and limestone
requirements per kg of nickel extracted, than the run-of-mine ore. The net result will be a positive impact on the
operating costs as well as the capital costs of the Project.
The test work was done on the Wamangola Ferruginous Siliceous ("FeSi") ore, which comprises around 45% of the
total Dutwa resource. We therefore need to extend the tests to the Transition ore and ore from the adjacent
Ngasamo deposit, which comprise the rest of the resource. This work has already commenced.
This expanded test work programme is essential to ensure we have fully defined the process flowsheet and
metallurgical parameters before commencing full scale pilot plant work. The purpose of the high value but
expensive pilot plant campaigns of the type we plan to undertake is to confirm technical parameters for the
engineering specification of the commercial scale plant. It is therefore vital that we have the pilot plant properly
configured and representative of the commercial scale plant we plan to build. We aim to update shareholders on
the further progress of this work early next year.
The metallurgical results are of such significance that the Board has decided to allow more time for this expanded
test programme in the fourth quarter of 2012, with the pilot plant run now scheduled to occur in 2013. The BFS is
now due to be completed in the second half of 2013.
We continue to increase our levels of confidence in the Dutwa resource and, following drilling campaigns at both
Ngasamo and Wamangola completed earlier this year, we recently announced a revised JORC mineral resource
statement for the Project. 94% of the total 107 million tonne (“Mt”) 0.93% Ni grade resource has been upgraded
and classified in the Indicated category with FeSi ore comprising 70% of the total resource.
In addition, work continues on other key areas for the optimisation of operating costs, most importantly transport of
raw materials and finished product, and the procurement of sulphur.
Current funds will carry us through to the start of the pilot plant test campaign, but we will need to secure additional
funds to allow us to complete the BFS. We will make further announcements in this regard in due course.
In relation to our legacy projects, I am pleased to report that we have entered into a binding agreement with
Elephant Copper Limited (“Elephant”) for the disposal of our remaining Zambian copper assets, the wholly owned
Katanga Resources Limited and 49.9% interest in Kujima Mining and Exploration Limited. The total consideration
of the transaction will be 15 million shares in Elephant and a 2% Net Smelter Return on the Katanga assets, which
will be applicable once the assets reach production. The transaction is conditional, amongst other things, on
approval of the Zambian Minister of Mines. We expect to finalise the transaction shortly and this will complete the
disposal of our remaining Zambian assets.
Turning to corporate issues and governance, I am particularly pleased to welcome Ambassador Paul Rupia to the
Board of African Eagle. Ambassador Rupia brings over 49 years of experience in Tanzania’s diplomatic and civil
service, having represented Tanzania as Ambassador to the United Nations, Ambassador to Ethiopia and Deputy
High Commissioner to the United Kingdom. He also served as Chief Secretary to the President and Head of
Tanzania’s Civil Service. He has a thorough knowledge of both the public and private sector in Tanzania, and will
add vital in-country knowledge, experience and contacts to the Board.
We have also appointed David Newbold as Finance Director. David has an excellent track record in the financing,
structuring, risk mitigation, governance and operation of natural resource businesses globally.
We already have a first-class project management team, and I believe that with the addition of Paul and David the
Board and management now have the skills and experience required to ensure African Eagle can successfully
develop the Dutwa Project.
Additionally we have appointed Cutfield Freeman & Co Ltd ("CF&Co") to support us as financial advisers. They will
work alongside David to develop and execute a financing strategy for the Dutwa Nickel Project which will embrace
strategic investor, equity and debt elements. CF&Co is a well known and respected independent financial advisory
services consultancy with a wealth of experience in successfully executing transactions in the mining and metal
processing industries, including a number of major nickel projects.
In conclusion, we have had an extremely busy and productive first half of the year. We have an experienced Board
and Management, and we are now entirely focused on bringing Dutwa through feasibility into development and on
towards production. We have engaged contractors – Lycopodium, Knight Piesold, Snowden, Citrus Partners and
CF&Co - who are leaders in our sector, familiar with nickel and with East Africa. We have made significant and
encouraging progress in advancing the BFS, unlocking the potential of this remarkable orebody. Lastly, but not
least, we have benefitted from the support and commitment of our main shareholders. I believe we are well placed
to continue to move forward with Dutwa.
Christopher Pointon
Chairman
28 September 2012
Financial Review
For the six months ended 30 June 2012
Key Financial Data 6 months to 6 months to Year to
30 June 30 June 31 December
2012 2011 2011
Unaudited Audited
£ £ £
Loss before tax attributable to equity owners (4,351,787) (712,583) (2,960,124)
Cash and cash equivalents 10,595,202 4,726,587 2,285,347
Exploration assets held for sale 2,275,281 1,078,634 2,465,518
Investment in associates - 2,870,698 2,677,921
Deferred exploration costs 14,658,103 11,761,144 11,126,684
Net assets/total equity 26,789,499 20,797,607 18,953,784
Net increase/(decrease) in cash 8,313,508 1,563,490 (883,872)
Loss per share – basic & diluted (0.8p) (0.2p) (0.7p)
Headline loss per share – basic & diluted (0.3p) (0.2p) (0.3p)
Condensed Interim Consolidated Statement of Comprehensive Income
Review of six months ended 30 June 2012 (reviewed) compared to the six month period ended 30 June
2011 (unaudited).
The loss after tax for the six months to 30 June 2012 at £4.4m is £3.7m higher than for the corresponding period
last year. This variance can be explained by:
1. Impairment of the Zambian assets for £2.7m (see note 4 below);
2. Other expenses increased by £0.7m largely as a result of resigning directors’ compensation payments;
3. Employee benefits increased by £0.3m.
Condensed Interim Consolidated Statement of Financial Position
Review as at 30 June 2012 (reviewed) compared to 31 December 2011 (audited)
The Company is in the process of disposing of its Zambian assets and impaired the assets during the period. See
note 4 below for further information.
Cash and cash equivalents increased by £8.3m due to the fund raisings in February and April 2012 with
approximately £12.5m before expenses being raised.
Deferred exploration costs at £14.7m are £3.5m higher than at 31 December 2011. The increase includes £3.4m
related to the Dutwa Nickel Project.
Other payables amounted to £1.8m, £1.4m higher than at 31 December 2011. The increase was mainly due to
higher accruals relating to the Dutwa Nickel Project.
At £26.8m, total equity increased by £7.8m. Share capital and share premium increased by £12.2m as a result of
the fund raisings, after expenses. The foreign currency reserve increased by £0.3m as a result of the exchange
differences in the period on the translation of foreign operations. The retained loss increased by £4.2m in line with
the loss for the half year.
Condensed Interim Consolidated Statement of Comprehensive Income
For the six months ended 30 June 2012
6 months to 6 months to Year to
30 June 30 June 31 December
2012 2011 2011
Note Unaudited Audited
£ £ £
Depreciation expense (22,255) (15,961) (30,511)
Employee benefits expense (612,294) (326,004) (677,784)
Impairment of deferred exploration expenditure (63,074) (47,017) (1,640,836)
Impairment of asset held for sale 4 (991,438) - -
Impairment of investment in associate 4 (1,734,716) - -
Impairment of investment in joint venture (21,724) - -
Share of loss in associates - (1,873) (9,116)
Profit on sale of licences 212,291 - -
Other expenses (1,030,056) (354,104) (819,479)
Other income 2,142 - -
Operating loss (4,261,124) (744,959) (3,177,726)
Finance income:
Bank interest receivable 45,121 7,168 10,117
Foreign exchange (loss)/gain (135,784) 25,208 207,485
Loss before tax (4,351,787) (712,583) (2,960,124)
Income tax expense - - -
Loss attributable to equity owners for the period (4,351,787) (712,583) (2,960,124)
Other comprehensive (loss)/income:
Exchange differences on translation of foreign operations (284,402) (536,618) (233,131)
Available for sale investments: fair value adjustment 40,000 (110,400) (170,400)
Other comprehensive (loss)/income for the period (244,402) (647,018) (403,531)
Total comprehensive loss attributable to equity owners (4,596,189) (1,359,601) (3,363,655)
for the period
Loss per share:
Basic/diluted loss per share from total and continuing 3 (0.8p) (0.2p) (0.7p)
operations
Headline/diluted loss per share from total and continuing 3 (0.3p) (0.2p) (0.3p)
operations
All operations are continuing.
The accompanying notes form an integral part of these reviewed condensed interim consolidated financial
statements.
Condensed Interim Consolidated Statement of Financial Position
As at 30 June 2012
30 June 30 June 31 December
2012 2011 2011
Note Unaudited Audited
£ £ £
ASSETS
Non-current assets
Property, plant and equipment 171,321 34,468 81,259
Available for sale investments 200,000 220,000 160,000
Investment in associates 4 - 2,870,698 2,677,921
Investment in joint ventures - 33,300 32,993
Deferred exploration costs 5 14,658,103 11,761,144 11,126,684
Total non-current assets 15,029,424 14,919,610 14,078,857
Current assets
Cash and cash equivalents 10,595,202 4,726,587 2,285,347
Other receivables 640,791 635,751 509,556
11,235,993 5,362,338 2,794,903
Exploration assets held for sale 6 2,275,281 1,078,634 2,465,518
Total current assets 13,511,274 6,440,972 5,260,421
Total assets 28,540,698 21,360,582 19,339,278
LIABILITIES
Current liabilities
Other payables (1,751,199) (562,975) (385,494)
Total liabilities (1,751,199) (562,975) (385,494)
Net assets 26,789,499 20,797,607 18,953,784
EQUITY
Equity attributable to owners of the parent:
Share capital 6,940,145 4,093,472 4,095,862
Share premium account 36,559,743 27,188,181 27,201,169
Merger reserve 705,723 705,723 705,723
Available for sale revaluation reserve 80,000 100,000 40,000
Foreign currency reserve (474,668) (493,753) (190,266)
Retained losses (17,021,444) (10,796,016) (12,898,704)
Total equity 26,789,499 20,797,607 18,953,784
The accompanying notes form an integral part of these reviewed condensed interim consolidated financial
statements.
Condensed Interim Consolidated Statement of Cash Flows
For the six months ended 30 June 2012
6 months to 6 months to Year to
30 June 30 June 2011 31 December
2012 2011
Unaudited Audited
£ £ £
Operating activities
Loss before taxation (4,351,787) (712,583) (2,960,124)
Adjustments for:
Depreciation 22,255 15,961 30,511
Exchange loss/(gain) 1,954 (953) (3,953)
Loss on disposal of property, plant and equipment 569 - 1,082
Interest received (45,121) (7,168) (10,117)
Impairment of deferred exploration expenditure 63,074 47,017 1,640,836
Impairment of asset held for sale 991,438 - -
Impairment of investment in associate 1,734,716 - -
Impairment of investment in joint venture 21,724 - -
Share based payments 229,047 136,982 281,835
Share of loss in associate venture - 1,873 9,116
Increase in other receivables (136,350) (196,800) (59,300)
Increase in other payables 376,543 74,794 69,783
Share of joint venture loss - 368 680
Cash flows from operating activities (1,091,938) (640,509) (999,651)
Investing activities
Payments to acquire property, plant and equipment (114,693) (8,014) (69,828)
Payments for deferred exploration expenditure (2,684,663) (940,115) (3,137,095)
Interest received 45,121 7,168 10,117
Investments in associates (43,176) (400,987) (248,740)
Cash flows used in investing activities (2,797,411) (1,341,948) (3,445,546)
Financing activities
Proceeds from issue of share capital (net of issue costs) 12,202,857 3,545,947 3,561,325
Cash flows from financing activities 12,202,857 3,545,947 3,561,325
Net increase/(decrease) in cash and cash equivalents 8,313,508 1,563,490 (883,872)
Cash and cash equivalents at beginning of year 2,285,347 3,170,709 3,170,709
Exchange loss (3,653) (7,612) (1,490)
Cash and cash equivalents at end of period 10,595,202 4,726,587 2,285,347
The accompanying notes form an integral part of these reviewed condensed interim consolidated financial
statements.
Condensed Interim Consolidated Statement of Changes in Equity
For the six months ended 30 June 2012
Share Share Merger Available Foreign Retained Total
capital premium reserve for sale currency losses attributable
account revaluation reserve to
reserve owners
£ £ £ £ £ £ £
Balance at 1 3,847,622 23,888,084 705,723 210,400 42,865 (10,220,415) 18,474,279
January 2011
Loss for period - - - - - (712,583) (712,583)
Exchange - - - - (536,618) - (536,618)
differences on
translation of
foreign operations
Available for sale - - - (110,400) - - (110,400)
investments
Total - - - (110,400) (536,618) (712,583) (1,359,601)
comprehensive
loss for the
period
Transactions
with equity
owners for the
first half of 2011:
Issue of share 245,850 3,499,575 - - - - 3,745,425
capital
Share issue costs - (199,478) - - - - (199,478)
Share based - - - - - 136,982 136,982
payments
Total 245,850 3,300,097 - - - 136,982 3,682,929
transactions with
equity owners
Balance at 30 4,093,472 27,188,181 705,723 100,000 (493,753) (10,796,016) 20,797,607
June 2011
Loss for period - - - - - (2,247,541) (2,247,541)
Exchange - - - - 303,487 - 303,487
differences on
translation of
foreign operations
Available for sale - - - (60,000) - - (60,000)
investments
Total - - - (60,000) 303,487 (2,247,541) (2,004,054)
comprehensive
loss for the
period
Transactions
with equity
owners for the
second half of
2011:
Issue of share 2,390 13,145 - - - - 15,535
capital
Share issue costs - (157) - - - - (157)
Share based - - - - - 144,853 144,853
payments
Total 2,390 12,988 - - - 144,853 160,231
transactions with
equity owners
Balance at 31 4,095,862 27,201,169 705,723 40,000 (190,266) (12,898,704) 18,953,784
December 2011
Loss for period - - - - - (4,351,787) (4,351,787)
Exchange - - - - (284,402) - (284,402)
differences on
translation of
foreign operations
Available for sale - - - 40,000 - - 40,000
investments
Total - - - 40,000 (284,402) (4,351,787) (4,596,189)
comprehensive
loss for the
period
Transactions
with equity
owners for the
first half of 2012:
Issue of share 2,844,283 9,807,116 - - - - 12,651,399
capital
Share issue costs - (448,542) - - - - (448,542)
Share based - - - - - 229,047 229,047
payments
Total 2,844,283 9,358,574 - - - 229,047 12,431,904
transactions with
equity owners
Balance at 30 6,940,145 36,559,743 705,723 80,000 (474,668) (17,021,444) 26,789,499
June 2012
The accompanying notes form an integral part of these reviewed condensed interim consolidated financial
statements.
Notes to the Condensed Interim Consolidated Financial Statements
For the six months ended 30 June 2012
1 Nature of Operations and General Information
African Eagle Resources plc (“African Eagle” or the “Company”) is a public limited company incorporated and
domiciled in England, with its primary listing on the AIM market of the London Stock Exchange and a secondary
listing on the Alternative Exchange of the Johannesburg Stock Exchange Limited (“AltX”). African Eagle is the
holding company of a mineral development and exploration group of companies (the “Group”). The Group is
focused on becoming a nickel producer and is currently undertaking a feasibility study on its Dutwa Nickel Project
in Tanzania.
The Company has prepared its condensed interim consolidated financial statements (“Financial Statements”) on a
going concern basis which assumes that the Company will be able to realise assets and discharge liabilities in the
normal course of business. At 30 June 2012 the Group had cash and cash equivalents of £10.6 million. The
Company, as at the date of approval of these Financial Statements, has sufficient funding to meet the Group's
working capital requirements for the next 12 months for going concern purposes. The Company will, however, need
to raise additional funds to start the pilot plant campaign and to complete the BFS and other planned activity.
The Directors are confident that they will be able to secure additional funding to undertake the current planned
program of activity over the 12 months from the date of approval of this review, but, in common with other
companies at this stage of development, there can be no certainty that the funding will be available.
African Eagle’s Financial Statements are presented in pounds sterling (£), which is also the functional currency of
the parent company. The Financial Statements were approved for issue by the Board of Directors on 27 September
2012.
2 Statement of Compliance and basis of preparation
The Financial Statements are for the six months ended 30 June 2012. They do not include all the information
required for full annual financial statements and should be read in conjunction with the audited consolidated
financial statements of the Group for the year ended 31 December 2011, which were prepared under International
Financial Reporting Standards (“IFRS”) as adopted by the European Union (“EU”).
The financial information is prepared under the historical cost convention and in accordance with the recognition
and measurement principles contained within IFRS as endorsed by the EU.
The comparative amounts in the Financial Statements include extracts from the Company’s consolidated financial
statements for the year ended 31 December 2011. These extracts do not constitute statutory accounts within the
meaning of Section 435 of the Companies Act 2006.
3 Loss Per Share
(a) Basic loss per share
The calculation of basic loss per share is based on the loss for the period divided by the weighted average number
of shares in issue during the period. In calculating the diluted loss per share potential ordinary shares such as
share options and warrants have not been included as they would have the effect of decreasing the loss per share.
Decreasing the loss per share would be anti-dilutive.
Loss per share 30 June 30 June 31 December
2012 2011 2011
Unaudited Audited
£ £ £
Loss for the period (4,351,787) (712,583) (2,960,124)
Weighted average number of shares in issue 531,734,445 405,960,448 407,793,202
Basic & diluted headline loss per share (0.8p) (0.2p) (0.7p)
(b) Headline loss per share
Headline loss per share has been calculated in accordance with the South African Institute of Chartered
Accountants Circular 3/2009 - Headline Earnings. Circular 3/2009 is effective for interim and/or annual financial
periods ending on or after 31 August 2009.
The calculation of headline loss per share is based on the headline loss for the year divided by the weighted
average number of shares in issue during the year. No diluted headline loss per share has been calculated as it
would be anti-dilutive by reducing the headline loss per share.
Headline loss per share
30 June 30 June 31 December
2012 2011 2011
Unaudited Audited
£ £ £
Loss for the period (4,351,787) (712,583) (2,960,124)
Adjusted for:
Plus loss on sale of tangible assets 569 - 1,082
Less profit on sale of intangible assets (212,291) - -
Plus impairment of deferred exploration assets 63,074 47,017 1,640,836
Plus impairment of assets held for sale 991,438 - -
Plus Group share of associate loss - 1,873 9,116
Plus impairment of associate 1,734,716 - -
Plus impairment of joint venture 21,724
Plus Group share of joint venture - 368 680
Headline loss (1,752,557) (663,325) (1,308,410)
Weighted average number of shares in issue 531,734,445 405,960,448 407,793,202
Undiluted headline loss per share (0.3p) (0.2p) (0.3p)
4 Impairment loss
As announced on 27 July 2012 an agreement disposing of the Group’s Zambian assets was signed with Elephant
Copper Limited (“Elephant”). It is expected to be completed by the end of October 2012. An impairment review
was undertaken based on the transaction and the results were accounted for during the period. Additionally, the
Group’s 49% share in Mkushi Copper Joint Ventures Limited (“Mkushi”), previously classified under investment in
associates, was transferred to exploration assets held for sale after its impairment. The fair value of these assets
as at 31 December 2011 was £2.7m for Mkushi and £1.3m for the other assets. As a result of the review, charges
of £1.7m and £1m were made to the Statement of Comprehensive Income for Mkushi and the other Zambian
assets respectively.
5 Deferred Exploration
30 June 30 June 31 December
2012 2011 2011
Unaudited Audited
£ £ £
Cost:
At 1 January 11,126,684 11,176,584 11,176,584
Foreign currency exchange differences (115,543) (387,441) (101,550)
Additions 3,709,946 1,019,018 2,649,459
Assets held for sale - - (956,973)
Impairment charge (63,074) (47,017) (1,640,836)
Balance at the period end 14,658,103 11,761,144 11,126,684
6 Assets held for sale
30 June 30 June 31 December
2012 2011 2011
Unaudited Audited
£ £ £
Cost:
Balance brought forward 2,465,518 1,098,843 1,098,843
Foreign currency exchange (loss)/gain (62,802) (37,225) 1,054
Additions 225,106 17,016 956,973
Sale of assets (258,356) - -
Impairment (991,438) - -
Transfers from investments in associates and joint ventures 897,253 - 408,648
Balance at the period end 2,275,281 1,078,634 2,465,518
Assets held for sale relate to the Igurubi gold project in Tanzania and the copper assets in Zambia. The
impairment relates to the Zambian copper assets (see note 4 above).
7 Events after the balance sheet date
On 27 July 2012 the Company announced that it had executed a binding agreement with Elephant for the disposal
of its remaining Zambian copper assets. This is conditional, amongst other things, on approval of the Zambian
Minister of Mines.
On 27 July 2012 the Company announced that it had granted 10,300,000 share options over ordinary shares to
certain Directors and key employees. The exercise price of 3.36 pence is based on the 90 day volume weighted
average price at market close on 26 July 2012.
Independent Review Report to African Eagle Resources plc
Introduction
We have been engaged by the company to review the financial information in the half-yearly financial report for the six
months ended 30 June 2012 which comprises the condensed interim consolidated statement of financial position,
condensed interim consolidated statement of comprehensive income, condensed interim consolidated statement of
changes in equity, consolidated statement of cash flows and the related explanatory notes that have been reviewed. We
have read the other information contained in the half yearly financial report which comprises only the Chairman's
Statement and considered whether it contains any apparent misstatements or material inconsistencies with the
information in the condensed set of financial statements.
This report is made solely to the company in accordance with guidance contained in ISRE (UK and Ireland) 2410,
'Review of Interim Financial Information performed by the Independent Auditor of the Entity'. Our review work has
been undertaken so that we might state to the company those matters we are required to state to them in a review
report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to
anyone other than the company, for our review work, for this report, or for the conclusion we have formed.
Directors' responsibilities
The half-yearly financial report is the responsibility of, and has been approved by, the directors. The AIM rules of the
London Stock Exchange require that the accounting policies and presentation applied to the financial information in
the half-yearly financial report are consistent with those which will be adopted in the annual accounts having regard to
the accounting standards applicable for such accounts.
As disclosed in Note 2, the annual financial statements of the group are prepared in accordance with IFRS as adopted
by the European Union. The financial information in the half-yearly financial report has been prepared in accordance
with the basis of preparation in Note 2.
Our responsibility
Our responsibility is to express to the Company a conclusion on the financial information in the half-yearly financial
report based on our review.
Scope of review
We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410,
'Review of Interim Financial Information Performed by the Independent Auditor of the Entity' issued by the Auditing
Practices Board for use in the United Kingdom. A review of interim financial information 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 International Standards
on Auditing (UK and Ireland) 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.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the financial information in the
half-yearly financial report for the six months ended 30 June 2012 is not prepared, in all material respects, in accordance
with the basis of accounting described in Note 2.
GRANT THORNTON UK LLP
Statutory Auditor, Chartered Accountants
London
27 September 2012
Date: 28/09/2012 08:10:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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