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Annual Report for the year ended 31 December 2012
TAWANA RESOURCES NL
Australian Securities Exchange
ASX Code: TAW
JSE Code: TAW
ABN 69 085 166 721
ANNUAL REPORT
FOR THE YEAR ENDED 31 DECEMBER 2012
CONTENTS
Corporate Directory 3
Chairman's Statement 4
Directors' Report 5
Corporate Governance Statement 24
Auditor's Independence Declaration 29
Statement of Comprehensive Income 30
Statement of Financial Position 31
Statement of Changes in Equity 32
Statement of Cash Flows 33
Notes to the Financial Statements 34
Directors' Declaration 54
Independent Auditor's Report to the Members 55
Schedule of Mining Tenements 57
ASX Additional Information 58
CORPORATE DIRECTORY
Directors Solicitors to the Company
Mr David Frances Executive Chairman Steinepreis Paganin
Mr Lennard Kolff Managing Director Level 4, The Read Buildings
Mr Julian Babarczy Non-Executive Director 16 Milligan Street
Mr Matthew Bowles Non-Executive Director Perth WA 6000
Joint Company Secretaries Price Sierakowski
Level 224, St Martin's Tower
Mr Winton Willesee 44 St George's Terrace
Mr Aaron Finlay Perth WA 6000
Principal Place of Business
and Registered Office Share Registry
Suite 25 Computershare Investor Services Pty Ltd
145 Stirling Highway GPO Box 2975
Nedlands WA 6009 Melbourne VIC 3001
Contact Details Tel: +61 3 9415 5000
Fax: +61 3 9473 2500
Website: www.tawana.com.au
Tel: +61 8 9389 3140 Auditor
Fax: +61 8 9389 3199
William Buck Audit (Vic) Pty Ltd
Level 20
181 William Street
Melbourne VIC 3000
Stock Exchange
Australian Securities Exchange
ASX Code: TAW
JSE Limited
JSE Code: TAW
CHAIRMAN'S STATEMENT
Dear Shareholders
It is with pleasure that I write to you as the new Chairman of your Company; 2013 is shaping up to be a
very interesting and potentially Company changing year.
With the discovery of the exciting new Mofe Creek iron ore play in Liberia the focus of your Company is
now firmly on taking this project to the next level. Although early days, the Mofe Creek discovery appears
to have the hallmarks of an economically significant project. Exceptional results from the maiden drill
programme indicate an overall project exploration target of over 500Mt contained iron ore, situated only
20km from the Liberian coast, this is an outstanding achievement.
I believe the next stage for your Company is one of the most exciting and professionally rewarding for the
management team, and potentially financially significant for shareholders. The success of the Company at
this stage is driven by technical excellence, which is evidenced by the identification of this new discovery
by the Managing Director Lennard Kolff. His almost exclusively Liberian in-country team's dedication and
eagerness to achieve is a credit to them. The respect and rapport this team has with the local community
is inspiring to see, and goes a long way to developing a social license to operate - something critical to
success and which your Board and Management strives to achieve.
Liberia is emerging as an important iron exporting country with renewed interest from the Indian iron ore
and steel majors. ArcelorMittal having already spent over US$1B to produce 4Mt/year are now
anticipating increasing production to 15Mt/year, Sesa Goa have intimated that they will spend up to
US$2.4B to develop their iron ore assets in the country. With these majors straddling the Mofe Creek
project your Company is well placed to take advantage of this renewed interest.
As we embark on resource definition work, further prospect identification, and high-level feasibility studies
this year we recognise the importance of maintaining good corporate governance and will look to augment
the existing board and management team commensurate with the new challenges facing the Company.
Further detail on activities to date, and future work plans can be found in the "Review of Operations" in
this Annual Report.
I look forward to working with the board and management over the next twelve months to deliver a
maiden resource and hopefully provide a positive high-level economic assessment of the Mofe Creek
project for you.
David J. Frances
Chairman
DIRECTORS' REPORT
Your directors submit their report for the year ended 31 December 2012 for Tawana Resources NL
("the "Company") and its controlled entities (the "Consolidated Entity").
Directors
The names and details of the Company's directors in office during the financial year and until the date
of this report are as follows. Directors were in office for the entire period unless otherwise stated.
Mr David Frances Executive Chairman
Appointed 28 January 2013
Mr Frances has been involved in the international mining industry for over 20 years. He was, most
recently, President and CEO of Mawson West Ltd (TSX:MWE), a position he held for seven years
during which he led Mawson through the transition from a Western Australian gold explorer to an
international copper explorer, developer, and producer in the Democratic Republic of Congo. Mr
Frances' experience in funding and developing projects in Africa and his knowledge of international
equity capital markets is a useful addition to the skills of the Tawana team. Mr Frances is currently a
non-executive director of Orrex Resources Ltd.
Over the past 3 years, Mr Frances has held directorships with the following ASX-listed companies:
Company Commenced Ceased
Orrex Resources Limited 30 Nov 2010 -
Mr Warwick Grigor Non-Executive Chairman
Appointed 20 April 2010
Resigned 28 January 2013
Mr Grigor is a veteran of 30 years in Australian stockbroking, analysis and corporate advisory
functions, having first commenced employment with Hamersley Iron Pty Ltd after completing degrees
in law and economics. His most recent venture is Canaccord BGF, a stockbroking business
established in 2008, where Mr Grigor is Executive Chairman and Head of Research.
Over the past 3 years, Mr Grigor has held directorships with the following ASX-listed companies:
Company Commenced Ceased
Heritage Gold NZ Limited 19 Apr 2007 7 April 2010
Peninsula Energy Limited 11 Apr 2005 -
Mr Lennard Kolff Managing Director
Appointed 27 October 2011
Mr Kolff joined Tawana initially as Chief Executive Officer in July 2010, having worked at Rio Tinto
over the past decade, where he was involved in a range of high profile projects including the
Simandou iron ore project and the Northparkes Cu-Au mine. His responsibilities have encompassed
a broad range of disciplines, including the design, implementation and supervision of multi-commodity
exploration and pre-feasibility study resource drilling programs, management of geological teams and
collaboration with the mine planning and development functions of major project teams.
Over the past 3 years, Mr Kolff has held no other directorships with ASX-listed companies.
Mr Euan Luff Non-Executive Director
Appointed 16 November 1998
Resigned 15 June 2012
Mr Luff is a Senior Partner of Wilmoth Field Warne, Solicitors. In his professional capacity he acts as
a legal adviser to a number of private and public companies.
Over the past 3 years, Mr Luff has held no other directorships with ASX-listed companies.
DIRECTORS' REPORT
Mr Julian Babarczy Non-Executive Director
Appointed 9 December 2009
Mr Babarczy is currently a Portfolio Manager at Regal Funds Management, where he has primary
responsibility for investments within the mining and oil and gas sectors. Prior to this role, Mr Babarczy
worked in investment banking for Lazard, where he provided advice to both listed and unlisted
companies on capital raising and merger and acquisition transactions. Before joining Lazard, Mr
Babarczy held several roles in corporate finance, where he was instrumental in a range of successful
transactions including IPOs, secondary market capital raisings, listed company advisory mandates
and equities research across a broad range of industry sectors. Julian holds a Bachelor of Business
from Monash University in Melbourne, is a Chartered Financial Analyst charterholder, and has a
graduate diploma in Applied Finance and Investment from the Securities Institute of Australia.
Over the past 3 years, Mr Babarczy has held no other directorships with ASX-listed companies.
Mr Matthew Bowles Non-Executive Director
Appointed 30 May 2011
Mr Bowles has extensive commercial and corporate finance experience within the resource sector,
formerly being an Executive Director, Mergers and Acquisitions with global advisory firm Ernst &
Young. Prior to joining Ernst & Young in 2004, Mr Bowles spent 8 years with Rio Tinto Limited in a
number of senior financial roles and 4 years in London in corporate finance and investment banking.
Mr Bowles is currently the Chief Development Officer for Gryphon Minerals Limited. He is a member
of the Australian Society of Certified Practising Accountants and the Financial Services Industry of
Australasia.
Over the past 3 years, Mr Bowles has held directorships with the following ASX-listed companies:
Company Commenced Ceased
Alicanto Minerals Limited 19 Sept 2012 -
Interests in the shares and options of the Company
As at the date of this report, the interests of the directors in the shares and options of Tawana
Resources NL were:
Name Number of ordinary Number of options
shares over ordinary shares
Mr D Frances(1) 250,000 -
Mr W Grigor(2) 27,850,000 5,000,000
Mr L Kolff - 15,000,000
Mr E Luff(2) 21,589,740 6,104,150
Mr J Babarczy 26,173,288 5,000,000
Mr M Bowles 6,000,000 5,000,000
(1) Opening balance as at the date of appointment
(2) Closing balance as at the date of resignation
Joint Company Secretaries
Mr Winton Willesee
Mr Willesee is an experienced company director and company secretary. Mr Willesee brings a broad
range of skills and experience in strategy, company administration, corporate governance, company
public listings, merger and acquisition transactions, reconstructions and corporate finance.
DIRECTORS' REPORT
Mr Willesee holds a Master of Commerce, Post-Graduate Diploma in Business (Economics and
Finance), a Graduate Diploma in Applied Corporate Governance, a Graduate Diploma in Applied
Finance and Investment, a Graduate Diploma in Education and a Bachelor of Business. He is a
Fellow of the Financial Services Institute of Australasia, a Member of CPA Australia and a Chartered
Secretary.
Mr Willesee is a currently a director and/or chairman of a number of small and mid-cap listed
companies.
Mr Aaron Finlay
Mr Finlay is a Chartered Accountant and Chartered Company Secretary with over 20 years'
experience in the accounting and finance profession.
Mr Finlay is Finance Director and Company Secretary for ASX-listed Cleveland Mining Company
Limited. Prior to this he was Chief Financial Officer and Company Secretary for ASX listed Mayne
Pharma Group Limited and previously INVESCO Australia's Chief Financial Officer where he had
responsibility for the operations of finance, as well as the compliance, legal, and human resources
functions. Prior to that position, Mr Finlay was head of group tax and treasury for INVESCO's global
operations in London. Prior to joining INVESCO, Mr Finlay worked for PricewaterhouseCoopers (then
Price Waterhouse) in London and Perth for 7 years.
Operating results
The loss of the Consolidated Entity for the year ended 31 December 2012 after providing for income
tax amounted to $6,473,524 (2011: $7,368,084).
Financial position
The net assets of the Consolidated Entity are $3,097,190 as at 31 December 2012 (2011:
$8,918,805).
Principal activities and significant changes in affairs
Tawana Resources NL's principal activities consisted of mineral exploration, in particular diamond and
gold exploration. There were no significant changes in the nature of the activities of the consolidated
entity during the year that have not been covered in this Annual Report.
REVIEW OF OPERATIONS
Corporate
- Mofe Creek Mineral exploration license granted and strike extensions secured via option
agreement
- Mr Euan Luff resigned as a Director
- Nimba and Lofa gold licenses relinquished
Mofe Creek Iron Ore Project
- Detailed aeromagnetics survey flown; 65km strike of prospective iron formation defined
- High priority drill targets defined at Koehnko and Gofolo targets
- 25km from coast, 95km along sealed road or adjacent to decommissioned rail alignment
65km to port of Monrovia
- 10km along strike from historic Bomi Hills mine; >50Mt high-grade DSO magnetite produced
Sinoe Gold Project
- Significant trenching results; 12m at 2.3g/t incl. 4m at 6.25g/t Au
- Three broad 8km x1 00-400m +30ppb gold trends defined in broad spaced soil gridding
- Five high priority, high tenor +50ppb up to 1g/t Au anomalies defined within trends by infill soil
sampling
Subsequent Events
- 2500m RC drill programme completed at Mofe Creek
- Significant friable iron formation and DSO intersected; new discovery
- Warwick Grigor resigned as Non-Executive Chairman and David Frances appointed
Executive Chairman
Corporate
The Company was granted the Mofe Creek mineral exploration license in December by the Ministry of
Lands Mines and Energy after successful transfer from a reconnaissance permit. The Company
secured strike extensions via Option Agreement to the Company's existing 100% owned Mofe Creek
Iron Ore Project on 8th May 2012. The Company signed an extension to the JV agreement entered
into with Konblo Bumi Inc to secure strike extensions (pending due diligence) to the Company's
existing 100% owned Mofe Creek Project.
The Company signed an extension to the JV agreement entered into with Global Mineral Investments
LLC ('GMI') to extend the Option period whilst transfer of the license is effectuated. The Company and
its joint venture partner received and paid for the license renewal notice for the Sinoe license from the
Ministry of Lands Mines and Energy during the fourth quarter.
The Company announced on 15th February 2012 that it had signed a Heads of Agreement ("HOA") to
acquire the gold rights to the Cape Mount Gold Project. Progression of the transaction required
negotiation and signing of a Definitive Agreement and was subject to, amongst other things,
satisfactory due diligence by Tawana. After conducting its due diligence investigations, Tawana
elected not to proceed with the transaction on 7th June 2012.
Legacy residential houses in South Africa were sold for ZAR2,000,000 to a local company during the
second quarter as the Company continues to rationalise legacy assets outside of its core focus.
Mr Euan Luff resigned as a director of the Company on 18th June 2012. The Company acknowledges
the valuable contribution of Mr Luff over his significant term as a director of the Company and wishes
him every success in his future endeavours.
The Nimba and Lofa gold exploration licenses in Liberia were relinquished during the year. Closure
was applied for over the Daniel Alluvial Project exploration license in RSA during the year.
Liberia
Hand auger drilling and mapping defined two high priority targets at the Mofe Creek iron ore project.
Detailed aeromagnetics and radiometrics was flown confirming the target areas, defining
approximately 65km strike length of prospective geology and several additional target areas. Drill
targets were defined and the reconnaissance license successfully transferred to an exploration
license (TAW 100%) during the year.
Wide spaced soil sampling with subsequent infill sampling within high priority areas generated over
4500 samples. Three broad 8km x100-400m +30ppb gold trends were defined with five high priority,
high tenor +50ppb up to 1g/t Au anomalies defined within the broader mineralised trends. 1600m of
trenching was completed with best results returning 12m at 2.3g/t including 4m at 6.25g/t Au during
the year.
Reconnaissance 400 x 50 m spaced soil sampling over high priority stream sediment BLEG
anomalies defined on the Nimba and Lofa projects was completed during the year. No significant
anomalies were identified and the Company submitted relinquishment reports for the Nimba and Lofa
licenses during the year.
Mofe Creek Iron Project
Reconnaissance geological mapping and rock chip sampling was completed over the license and JV
areas defining a preliminary estimate of 45km strike of prospective geology and confirming the
presence of both friable iron formation and DSO mineralization within the license area. A total of 119
itabirite rock chip samples have been assayed to date across the prospective iron formation. Average
iron formation grades from the 119 samples are detailed in the table below.
n = 119 Fe % SiO(2) % Al2O3 % P% S% Mn % LOI1000 %
Avg 43.00 34.95 1.09 0.08 0.02 0.06 2.07
Max 63.69 78.29 11.41 0.94 0.09 2.02 11.10
Min 11.06 0.78 0.03 0.01 0.00 0.01 0.07
Mode 47.69 38.24 0.28 0.01 0.01 0.02 1.58
Average grade of all rock chip sampling to date
A decision was made to fly detailed aeromagnetics to better define potential drill targets. The
Company announced results of the aeromagnetics survey on 6th August 2012. The survey was flown
by Aeroquest Airborne of Perth, WA, a member of the Aeroquest International group of companies.
The survey was by PAC-750XL fixed wing aircraft at 200m line spacing and 50m ground clearance.
Survey QC was managed by Southern Geoscience Consultants of Perth and after all checks of data
met quality control requirements specified within the agreement.
Over 65km strike length of iron formation was interpreted from the aeromagnetics Folding and
repetition of the itabirite within the highest priority targets appears to have caused thickening of the
iron formation enhancing prospectivity. Detailed aeromagnetics interpretation of the 200m line
spacing survey was completed by Southern Geoscience Consultants (SGC) over the license area.
Interpretation confirmed the geological mapping to date and the five key target areas defined;
Koehnko, Zaway, Gofolo, Gofolo West and Gofolo North-West in addition to other target areas in the
south.
The Company successfully trialed hand auger drilling as an alternative to trenching and pitting during
the wet season. This allowed for safer, faster, less invasive and more cost effective access into areas
of no outcrop within target areas. Hand auger drilling effectively penetrates areas of friable iron
formation with hole depths averaging 3.8m and reaching up to 5.7m depth.
Over 50 hand auger holes were drilled on a 400 x 100m grid into the Koehnko target. All holes
terminated in mineralization with an average hole depth of 3m and up to 5.5m deep. The friable iron
formation intersected to date averages 42% Fe and up to 53% Fe with low contaminants over an
interpreted footprint of 5.2km strike and 100m to 400m width. Mineralisation remains open to the
south where hand auger drilling continues. Average end of hole grades from the 50 holes received
over the Koehnko target to date are detailed below.
depth (m) Fe % SiO(2) % Al2O3 % P% S% LOI1000 % CR2O3 % TiO2 % V2O5 % MnO %
Avg 3 41.75 27.46 7.12 0.03 0.05 3.29 0.06 0.22 0.01 0.02
Max 5.5 52.97 53.54 17.09 0.07 0.13 9.94 0.30 1.09 0.07 0.05
Min 0.3 24.06 4.75 1.51 0.01 0.00 0.00 0.00 0.03 0.00 0.01
Average grades of Koehnko target hand auger drilling to date
All samples were assayed by SGS Liberia and were sourced from in-situ outcropping material.
Samples were dried and crushed to a nominal 2 mm using a jaw crusher then the whole sample
pulverised in a LM2 to a nominal 85% passing 75 µm. A 200g sample was then scooped, with iron ore
analysis of majors and minors by borate fusion-XRF.
The Mofe Creek Project is located within one of Liberia's historic premier iron ore mining districts. The
project is 10 km along strike from the abandoned Bomi Hills iron ore mine. Historic production at Bomi
Hills is poorly documented; however estimated historic production by the Government of Liberia is 50
Mt of high-grade DSO lump magnetite in addition to high-grade beneficiated sinter feed concentrate.
Bomi Hills produced high-grade direct shipping ore (DSO) magnetite in addition to magnetite
concentrate beneficiated from itabirite (metamorphosed and re-crystalised banded iron formation).
DSO magnetite averaged 64.5% Fe, 4.5% SiO2, 1.5% Al2O3 and 0.13% P, of which 53% formed lump
material (average 11-37mm) and 47% formed fines (<11mm). The beneficiated itabirite concentrate
averaged 64% Fe, 6% SiO2 and 0.04-0.05% P and was used to produce sinter feed (Gruss, 1973).
The Project is well positioned for possible future infrastructure scenarios; road or rail to the deep
water port of Monrovia or road to coast and transhipment via barge to deeper water for onward
shipment. A well-maintained 100km long sealed road exists from the central licence area to the city of
Monrovia. In addition to this a decommissioned iron ore railway alignment* exists from the Bomi Hills
mine to the port of Monrovia; 20km east from the easternmost magnetic anomaly. Rail distance from
Mofe Creek to the port of Monrovia is 65km. Alternatively the Project area is approximately 25km from
the coast for possible stand-alone haul road construction, trucking and transhipment via barge to
deeper water for on shipment.
Sinoe Gold Project
Tawana previously secured binding exclusivity and exclusive rights to purchase outright the Sinoe
license pending results of the first year field exploration programme. The Company funded exploration
during the first year and intends to exercise its right to purchase the licence outright and an extension
to the Option period has been signed whilst transfer of the license is effectuated. The mineral
exploration license covers 400km2 of Birimian aged rocks along arguably one of the most prospective
gold mineralised structures being explored in Liberia today; the Dugbe Shear.
The project area is 25km along strike from Hummingbird's (AIM: HUM) 3.8Moz Dugbe discovery and
40km along strike from Equator Resources (ASX: EQU) Bukon Jedeh Project. Both projects are
hosted along secondary and tertiary structures adjacent to the main Dugbe Shear. Similar structural
settings exist over the Sinoe Project area.
Infill soil sampling defined five high priority +50ppb soil anomalies with individual soils of up to 1g/t Au
and consecutive lines of results over 100ppb. Highest priority anomalies range from 1km up to 1.8km
in length and between 200m to 500m widths. All anomalies occur within large footprint, lower tenor
+30ppb envelopes or 'Gold Trends' defined over the 800x100m grid announced in March 2012.
Trench results were received for initial trenching over the southern +30ppb gold trend defined during
phase one soil sampling. Trenching was designed to test for broad mineralised zones coincident with
a large +30ppb anomaly defined by 800x100m soil sampling. Mineralised trench intervals returned
were:
- 12m at 2.3g/t including 4m at 6.25g/t Au in Trench 1
- 22.1m at 0.24g/t including 2.1m at 0.49g/t Au in Trench 1
- 24m at 0.4g/t including 8m at 0.87g/t Au in Trench 2B
- 16m at 0.24g/t Au in Trench 2B
Trench ID UTM_E UTM_N From (m) To (m) Interval (m) Sample ID Au ppm Intersection
PNTR001 524661 562671.3 257.7 261.7 4 STS1081 0.51 12m @ 2.3g/t incl. 4m @ 6.25g/t
PNTR001 524661 562667.3 261.7 265.7 4 STS1082 6.25 Au (0.1g/t Au cut-off)
PNTR001 524661 562663.3 265.7 269.7 4 STS1083 0.15
PNTR001 524661 562257.25 673.2 674.3 1.1 STS1234 0.37
PNTR001 524661 562255.45 674.3 676.8 2.5 STS1235 0.34
PNTR001 524661 562253.65 676.8 677.9 1.1 STS1236 0.04
PNTR001 524661 562252.6 677.9 678.9 1 STS1237 0.51 22.1m @ 0.24g/t Au incl. 2.1m @
PNTR001 524661 562251.55 678.9 680 1.1 STS1238 0.51 0.49g/t Au (0.1g/t cut-off)
PNTR001 524661 562249 680 684 4 STS1093 0.14
PNTR001 524661 562245 684 688 4 STS1094 0.21
PNTR001 524661 562241 688 692 4 STS1095 0.16
PNTR001 524661 562237.35 692 695.3 3.3 STS1096 0.25
PNTR002B 528860 565838 0 4 4 STS1322 0.785
PNTR002B 528860 565834 4 8 4 STS1323 0.95
PNTR002B 528860 565830 8 12 4 STS1324 0.13 24m @ 0.4g/t incl. 8m @ 0.87g/t
PNTR002B 528860 565826 12 16 4 STS1325 0.35 Au (0.1 g/t cut-off)
PNTR002B 528860 565822 16 20 4 STS1326 0.1
PNTR002B 528860 565818 20 24 4 STS1327 0.13
PNTR002B 528860 565658 180 184 4 STS1369 0.26
PNTR002B 528860 565654 184 188 4 STS1370 0.345 16m @ 0.24g/t Au (0.1g/t cut-off)
PNTR002B 528860 565650 188 192 4 STS1371 0.13
PNTR002B 528860 565646 192 196 4 STS1372 0.22
Mineralised trench intersections
Soil samples were collected on a nominal 400x50m and 200x50m grid. Lines were cut and surveyed
using hand held GPS. Approximately 1.5kg of B horizon soil was collected below the surface
vegetation and humus layer; generally around the 30cm depth profile. Sample sites that occurred
within close proximity to transported stream sediments were moved to the nearest available site to
avoid sampling stream sediment and target in-situ weathered soil horizons. Alternating field duplicates
and certified standards at various analytical levels were inserted every 25th sample for QA/QC
purposes. Trench samples were collected by channel sampling to geological intervals and maximum
interval length of 4m. Lithology, alteration, weathering, veining, structure and mineralisation were
logged to geological intervals.
All samples were submitted to SGS Laboratory in Monrovia for sample preparation and gold analysis.
All samples were crushed to a nominal 2mm by jaw crusher then pulverised to a nominal 85% passing
75µm and a 200g scoop sub-sample taken for analysis. Laboratory preparation equipment was
flushed using barren material between each sample run. Soil sample gold analysis was by Aqua
Regia digest and Solvent Extraction AAS finish (DL 0.002 ppm). Trench sample gold analysis was by
Fire Assay of a 50g sample and AAS finish (DL 0.01ppm). Results received to date have passed
internal QA/QC procedures and are within reporting error limits (+/-95% CL) of certified standards and
duplicates inserted by the Company providing confidence in the reported results.
The geology of the Sinoe area is characterised by a package of gently dipping biotite and garnet-
biotite schists, intruded by cm to >10m scale pegmatite dykes and sills, mafics and late granitic
intrusives. The strong north-easterly striking gold anomalous zones are interpreted to be associated
with north-east splays off the major Dugbe shear. A similar structural trend is noted at the Dugbe
(1.8Moz) and Tuzon (2.05Moz) projects 25km to the east. The splays appear bound to the north by a
sub parallel structure to the Dugbe shear, and both structures appear to wrap around a large, 35km
by 14km circular feature underlying the known resources and Sinoe project areas. The circular feature
has a coincident magnetics low and radiometrics high geophysical anomaly which in conjunction with
the widespread presence of pegmatites is interpreted to represent an underlying intrusive body of
likely granitic affinity. The geological setting and field observations is interpreted to suggest an
intrusion related gold (IRG) genetic model which alludes to significant tonnage and in some instances
grade potential.
Nimba and Lofa
The Company completed 400x50m spaced soil programmes over the Nimba and Lofa licenses. Soil
sampling at Lofa was designed to target a discrete 6x3km area of hills in the north-west of the Lofa
license where peak BLEG anomalies reported at 8.6ppb; 8.5 times higher than background gold
levels and clustering of BLEG anomalies was observed. Soil sampling at Nimba was designed to test
a >10 km strike length ridge and two smaller sub-parallel ridges where peak BLEG anomalies were
recorded at 16 ppb; 16 times higher than background gold levels of around 1ppb.
No significant soil anomalies were defined at Nimba or Lofa and the Company submitted
relinquishment documents for both licenses during the year.
Subsequent Events & Work Plan Going Forward
A maiden 2,500m RC drilling programme was completed over the Gofolo and Koehnko targets at
Mofe Creek. Significant mineralised intersections were returned including 40m at 49.9% Fe with low
contaminants from surface (including 14m at 57.5% Fe from 12m down hole) and Gofolo and 34m at
42.8% Fe with low contaminants from surface (including 8m at 53.5% Fe from 12m down hole) at
Koehnko. Planning is underway for a 10,000m resource drilling programme and 5,000m exploration
drilling programme with the aim to define a JORC compliant resource by end 2013. Meanwhile hand
auger drilling has resumed helping define and prioritise key target areas in Mofe Creek prior to drilling
commencing.
Hand auger drilling along strike from reported trench intersections and high priority soil anomalies
commenced during Q1 2013 at the Sinoe gold project. Pending results of the auger programme
expected during Q2 2013, follow-up diamond drilling of significant anomalies is planned.
About Liberia
Liberia is a democratic country run by Her Excellency President Ellen Johnson Sirleaf; Africa's first
elected female head of state in 2005 and recently re-elected in November 2011 for her second term.
The country is hugely prospective and hosts several world class iron ore deposits but yet is
completely underexplored for gold and non-ferrous metals. Liberia has a modern and transparent
mining code and the government is supportive of foreign investment especially in the exploration and
mining industry to help unlock the value of its potential mineral wealth.
Liberia is located in West Africa dominantly within the Archean aged Kenema Man Domain and lesser
Birimian sediments to the east. There are a large number of world class mineral deposits located in
the Archean and Birimian rock types throughout West Africa including Simandou (2.2Bt Fe), Obuasi
(40Moz+ Au) and Tasiast (18Moz+ Au). West Africa is one of the fastest growing mineral provinces in
the world and Liberia currently hosts several world class iron ore deposits and is underexplored for
gold.
South Africa
Rakana Consolidated Mining Pty Ltd (TAW 26%)
The Company holds a 26% equity stake in Rakana Consolidated Mining Pty Ltd ("Rakana") the joint
venture partner of Aquila Resources Ltd ("Aquila") in the Thabazimbi Joint Venture ('TJV'). The
Avontuur Manganese project which includes the Gravenhage manganese resource and the Meletse
iron ore resource are incorporated under the TJV.
Thabazimbi Iron Ore Project (TAW indirect interest 6.7%)
The Thabazimbi Iron ore Project includes the Meletse Iron Ore project and is located in the Limpopo
Province of South Africa. Aquila announced a resource increase on the Thabazimbi Iron Ore Project
during the year. For further technical detail please refer to Aquila's December 2012 Quarterly report.
Avontuur Manganese Project (TAW indirect interest 6.7%)
Aquila announced a resource increase on the Avontuur Manganese Project during the year. For
further technical detail please refer to Aquila's announcement of 29th March 2012.
Aquila announced on 3rd April 2012 the termination of sale process for Avontuur Manganese Project
in light of cash flow anticipated from other transactions and the flat manganese market conditions.
Daniel Alluvial Project, Kimberley Region (TAW 100%)
The Daniel Alluvial Project is a large buried palaeo alluvial diamond project 2 km south of the Finsch
kimberlite diamond mine. It was discovered in 2003 following a FALCOMTM survey by BHPB targeting
satellite kimberlite pipes around Finsch. The project consists of three diamondiferous palaeo gravel
channels; Feeder Channel, Main Channel and Eastern Gravels. The Daniel diamonds are interpreted
to be derived from eroded diamondiferous Finsch kimberlite material.
A Confidentiality Agreement was signed with a listed South African company during the year to review
Daniel data. No corporate activity resulted and the Company has applied for closure over the Daniel
license.
Legacy residential houses in South Africa were sold for ZAR2,000,000 to a local company during the
second quarter as the Company continues to rationalise legacy assets outside of its core focus.
For further information, please contact Lennard Kolff van Oosterwijk, Managing Director.
Competent Persons Statements
The information in this report in so far that it relates to Liberian Project Exploration Results, Mineral Resources or Ore Reserves
is based on information compiled by Lennard Kolff van Oosterwijk, who is a Member of the Australian Institute of Geoscientists
included in a list promulgated by the ASX from time to time. Lennard Kolff van Oosterwijk is a full-time employee of the
Company and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration
and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the 'Australasian
Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Lennard Kolff van Oosterwijk consents to the
inclusion in the report of the matters based on his information in the form and context in which it appears.
The information in this report, insofar as it relates to the Meletse Iron Ore Resource and the Gravenhage Manganese Resource
was prepared under the supervision of Mr Brent E Green who is a member of the Australian Institute of Geoscientists and Mr
Bernhard Siebrits who is a member of the Australasian Institute of Mining and Metallurgy. Mr Green is full-time employee of
Aquila Resources Ltd and Mr Siebrits is a full-time employee of Golder Associates Africa Ltd. Mr Green and Mr Siebrits have
sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity
which they are undertaking to qualify as Competent Persons as defined in the 2004 Edition of the 'Australasian Code of
Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Both Mr Green and Mr Siebrits consent to the
inclusion in the announcement of the above matters based on the information in the form and context in which it appears.
Subsequent events
On 11 January 2013, the Company announced that it plans to commence RC drilling at the Mofe
Creek project during January 2013 after it was granted the Mofe Creek mineral exploration license by
the Ministry of Lands Mines and energy late last year.
On 29 January 2013, the Company announced that it has commenced RC drilling at the Mofe Creek
project during January 2013 after it was granted the Mofe Creek mineral exploration license by the
Ministry of Lands Mines and energy late last year. Approximately 1,600m of RC drilling of a planned
2,500m programme has been completed on the Koehnko target. Drilling has intersected significant
widths of friable iron formation from surface to an average down-dole depth of 36.5m and maximum of
51m.
On 29 January 2013, the Company announced the appointment of Mr David Frances as Executive
Chairman. Concurrent to the appointment of Mr Frances to the Board is the resignation of Non-
Executive Chairman, Mr Warwick Grigor.
On 26 February 2013, the Company announced that 50,000,000 options expiring 23 February 2013
had been exercised at a price of $0.01 per option raising $500,000 for the Company.
On 18 March 2013, the Company announced the results of its maiden 2,500m reverse circulation drill
programme which was completed at the Company's 100% owned Mofe Creek project in Liberia, West
Africa.
Dividends paid or recommended
The Directors do not recommend the payment of a dividend and no amount has been paid or
declared by way of a dividend to the date of this report.
Future developments, prospects and business strategies
The consolidated entity will continue to concentrate on mineral exploration particularly iron ore
exploration with emphasis on the development of its existing projects.
Environmental issues
The Company is aware of its environmental obligations with regards to its exploration activities and
ensures that it complies with all regulations at all times.
REMUNERATION REPORT (Audited)
This report details the nature and amount of remuneration for each Director of Tawana Resources NL,
and for key management personnel. For the year ended 31 December 2012, there are considered to
be no key management personnel who are not Directors of the Company.
Remuneration policy
The Board policy for determining the nature and amount of remuneration of Directors and Executives
is agreed by the Board of Directors as a whole. The Board obtains professional advice where
necessary to ensure that the Company attracts and retains talented and motivated Directors and
employees who can enhance Company performance through their contributions and leadership.
Remuneration policy is based on industry practice rather than Company performance and takes into
account the risks and liabilities assumed by the directors and executives as a result of their
involvement in the activities undertaken by the Company.
Executive Director Remuneration
In determining the level and make-up of executive remuneration, the Board negotiates remuneration
to reflect the market salary for a position and individual of comparable responsibility and experience.
Remuneration is compared with the external market by reference to industry salary surveys. If
required, the Board may engage an external consultant to provide independent advice in the form of a
written report detailing market levels of remuneration for comparable executive roles.
Remuneration consists of a fixed remuneration component as considered appropriate.
Non-Executive Director Remuneration
Non-Executive Directors' fees are paid within an aggregate limit which is approved by the
shareholders from time to time. Retirement payments, if any, are determined in accordance with the
rules set out in the Company's Constitution and the Corporations Act at the time of the Director's
retirement or termination. Non-Executive Directors remuneration may include an incentive portion
consisting of bonuses and/or options, as considered appropriate by the Board, which is subject to
shareholder approval in accordance with the ASX Listing Rules.
The aggregate remuneration, and the manner in which it is apportioned amongst Non-Executive
Directors, is reviewed annually. The Board considers the amount of director fees being paid by
comparable companies with similar responsibilities and levels of experience of the Non-Executive
Directors when undertaking the annual review process.
The current maximum amount of Non-Executive Directors fees payable is fixed at $300,000 in total,
for each 12 month period commencing 1 January each year, until varied by ordinary resolution of
shareholders.
Executive Remuneration
Executive remuneration is paid according to experience and market conditions. Executive
remuneration is reviewed annually by the Board. Remuneration may include an incentive portion
consisting of bonuses and/or options, as considered appropriate by the Board, which may be subject
to shareholder approval in accordance with the ASX Listing Rules. There is currently no formal bonus
scheme in place.
The Board considers the amount of executive remuneration being paid by comparable companies
with similar responsibilities and levels of experience of the executive when undertaking the annual
review process.
Details of remuneration for year ended 31 December 2012
Details of the remuneration of the Directors of Tawana Resources NL and its controlled entities, are
set out in the following tables:
Short-term benefits Post Share- Total Perform-
employment based ance
payments Related(2)
Salary and Cash bonus Non-cash Super-
fees benefits annuation
2012 $ $ $ $ $ $ %
Directors
Mr W Grigor 40,000 - - 3,600 84,500 128,100 66.0
Mr L Kolff 231,711 - - 20,854 169,000 421,565 53.9
Mr E Luff (1) 16,667 - - - - 16,667 -
Mr J Babarczy 40,000 - - - 84,500 124,500 66.0
Mr M Bowles 40,000 - - 3,600 84,500 128,100 66.0
368,378 - - 28,054 422,500 818,932
(1) Resigned 15 June 2012
(2) Share based payments from all of performance-related remuneration
Short-term benefits Post Share- Total Perform-
employment based ance
Salary and Cash bonus Non-cash Super- payments related
fees benefits annuation
2011 $ $ $ $ $ $ %
Directors
Mr W Grigor 40,000 - - 3,600 - 43,600 -
Mr L Kolff (1) 54,167 - - 4,875 - 59,042 -
Mr E Luff 40,000 - - - - 40,000 -
Mr J Babarczy 40,000 - - - - 40,000 -
Mr H Hill (3) 16,667 - - - - 16,667 -
Mr M Bowles (4) 23,333 - - 2,100 - 25,433 -
Key Management
Personnel
Mr L Kolff (2) 142,500 25,000 - 13,650 75,619 256,769 39.2
356,667 25,000 - 24,225 75,619 481,511
(1) Remuneration from appointment as a Director on 27 October 2011
(2) Remuneration while Chief Executive Officer to 26 October 2011. Share-based payments during
this period relates to options issued in the prior year that vested during this period.
(3) Resigned 27 May 2011
(4) Appointed 30 May 2011
Options granted as remuneration
All options issued to Directors and Key Management Personnel are issued for nil consideration.
All options issued have been granted for up to a five year period, vesting within 12 and 24 months
from contract or issue date.
All options issued carry no dividend or voting rights. When exercised, each option is converted into
one ordinary share pari passu with existing ordinary shares.
During the year ended 31 December 2012, 25,000,000 options were issued to Directors or Key
Management Personnel as remuneration.
Shares issued on exercise of compensation options
During the years ended 31 December 2012 and 2011, no share options were exercised by Directors
or Key Management Personnel.
Employment contracts of directors and senior executives
There are no contracts between the Company and the Directors other than Messrs Frances and Kolff.
The Company has entered into a standard appointment agreement with Mr Len Kolff which provides
for an appointment term of three and one half years from 14 June 2012 and a notice period of three
months, $230,000 annual salary and performance bonuses together with an issue of options over fully
paid ordinary shares in the Company as noted above.
The Company has entered into a standard appointment agreement with Mr David Frances which
provides for an appointment term of one year from 28 January 2013 and a notice period of one
month, $260,000 annual salary and an issue of incentive options subject to shareholder approval.
Meetings of directors
During the financial year, 10 meetings of Directors were held. Attendances by each Director during
the year were as follows:
Board meetings
Number Number
attended eligible to
attend
Mr W Grigor 10 10
Mr L Kolff 10 10
Mr E Luff 6 5
Mr J Babarczy 10 10
Mr M Bowles 10 10
Options
At the date of this report, the unissued ordinary shares of Tawana Resources NL under option are as
follows:
Grant date Date of expiry Exercise price Number under
option
17 Jan 2009 17 Jan 2014 $0.10 6,750,000
9 Sep 2010 30 Jul 2013 $0.01 50,000,000
9 Sep 2010 9 Sep 2014 $0.05 5,000,000
8 Mar 2011 8 Mar 2014 $0.01 25,000,000
10 Nov 2011 10 Nov 2013 $0.03 1,250,000
10 Nov 2011 10 Nov 2015 $0.05 1,250,000
28 May 2012 30 April 2015 $0.036 27,000,000
27 June 2012 30 April 2015 $0.036 1,500,000
117,750,000
During the year ended 31 December 2012, 20,000,000 options were exercised at a price of $0.01 per
option. During the year ended 31 December 2011, 30,000,000 options were exercised at a price of
$0.01 per option. Subsequent to 31 December 2012 a further 50,000,000 options expiring 23
February 2013 were exercised at a price of $0.01 per option.
No person entitled to exercise an option had or has any right by virtue of the option to participate in
any share issue of any other body corporate.
Indemnifying officers or auditor
In accordance with the constitution, except as may be prohibited by the Corporations Act 2001 every
officer of the Company shall be indemnified out of the property of the Company against any liability
incurred by him in his capacity as officer or agent of the Company or any related corporation in
respect of any act or omission whatsoever and howsoever occurring or in defending any proceedings,
whether civil or criminal. The terms of the policy prevent disclosure of the amount of the premium
payable and the level of indemnification under the insurance contract.
Proceedings on behalf of the Company
No person has applied for leave of Court to bring proceedings on behalf of the Company or intervene
in any proceedings to which the Company is a party for the purpose of taking responsibility on behalf
of the Company for all or any part of these proceedings.
The Company was not a party to any such proceedings during the year.
Non-audit services
The Company did not engage its external auditor to provide any non-audit services during or since the
end of the financial year.
Auditor's independence declaration
The lead auditor's independence declaration for the year ended 31 December 2012 has been
received and is attached to this Directors' Report.
Signed in accordance with a resolution of the Board of Directors.
Mr Lennard Kolff
Managing Director
Dated at Sydney this 27th day of March 2013
CORPORATE GOVERNANCE STATEMENT
The Board members of Tawana Resources NL are committed to achieving and demonstrating the
highest standards of corporate governance. An extensive review of the Company's corporate
governance framework was completed in light of the best practice recommendations released by the
Australian Securities Exchange (ASX) Corporate Governance Council in March 2003. In August
2007, the ASX Corporate Governance Council released a second edition of the principles, which was
subject to further amendments in 2010. The Board continues to review the framework and practices
to ensure they meet the interests of shareholders. The Company and its controlled entities together
are referred to as the consolidated entity in this statement.
The relationship between the Board and Senior Management is critical to the consolidated entity's
long-term success. The Directors are responsible to the shareholders for the performance of the
Company in both the short and the longer term and seek to balance sometimes competing objectives
in the best interests of the consolidated entity as a whole. Their focus is to enhance the interests of
shareholders and other key stakeholders and to ensure the consolidated entity is properly managed.
Day to day management of the consolidated entity's affairs and the implementation of the corporate
strategy and policy initiatives are formally delegated by the Board to the Managing Director as set out
in the consolidated entity's Delegated Authority Policy.
A description of the Company's main corporate governance practices is set out below. All of these
practices, unless otherwise stated, were in place for the entire year.
Foundations for management and oversight
The Board has the overall responsibility to shareholders for all governance matters of the
consolidated entity. The Board remains primarily responsible for the strategic direction and financial
aspirations of the consolidated entity, whilst delegating the responsibility of management to the
Managing Director and/or the senior management team.
The Board aims to fulfill its responsibilities by creating value for all stakeholders that is sustainable
and beneficial. Stakeholders include shareholders, employees, customers, the community and the
environment. The Board has adopted a Charter that includes amongst other items, the specific roles
and responsibilities of the Board. Without limiting the Board's function, their specific responsibilities
include:
- Approving objectives, strategies and financial plans and monitoring the Company's performance
against these plans;
- Appointment of the Managing Director and reviewing his performance and remuneration;
- Monitoring compliance with the regulatory requirements, ensuring all consolidated entity
employees act with integrity and due diligence in the interests of the Company and
stakeholders; and
- Review and approval of all significant policies and procedures across the consolidated entity.
Board composition
The Board reviews from time to time the size, structure and composition of the Board, taking into
consideration the balance of skills, experience and knowledge of Board members.
The Company has adopted a definition of independence consistent with the guidance provided by the
ASX Corporate Governance Council. Such a definition provides that an Independent Director is a
Non-Executive Director and is not a member of management and:
- is not a substantial shareholder of the Company or an officer of, or otherwise associated directly
with, a substantial shareholder of the Company;
- within the last three years has not been employed in an executive capacity by the Company or
another member of the consolidated entity, or been a Director after ceasing to hold such
employment;
- within the last three years has not been a principal or a material adviser or a material consultant
to the Company or member of the consolidated entity, or an employee materially associated
with the service provided;
- is not a material supplier or customer of the Company or other member of the consolidated
entity, or an officer of or otherwise associated directly with a material supplier or customer;
- has no material contractual relationship with the Company or another member of the
consolidated entity other than as a Director of the Company;
- has not served on the Board for a period which could, or could reasonably be perceived to,
materially interfere with the Director's ability to act in the best interests of the Company; and
- is free from any interest and any business or other relationship which could, or could reasonably
be perceived to, materially interfere with the Director's ability to act in the best interests of the
Company.
A substantial shareholder is defined to be a person or Company that has an interest of 5% or more of
the voting rights of the Company.
The Board has reviewed the position of all current directors in light of the Company's adopted
definition of independence.
Throughout the whole of the financial year the Board was chaired by a Non-executive (Independent)
Chairman, and was comprised of a majority of independent non-executive Directors.
The Board considers that Mr Bowles meets the criteria in Principle 2. He has no material business or
contractual relationship with the Company, other than as a director and no conflicts of interest which
could interfere with the exercise of independent judgement, notwithstanding he is a nominee of
Gryphon Minerals Limited (as at the date of this report Gryphon Minerals Limited holds approximately
12.8% of the Company's issued share capital). The Board considers Mr Bowles to be independent on
the basis Gryphon Minerals Limited is not in a position to exercise control over the Company.
The following were Directors during the 2012 year:
Director Capacity Position Held office Held office to
from
W Grigor Non-Executive Chairman Independent 20 Apr 2010 28 January
2013
L Kolff Managing Director Non-Independent 27 Oct 2011 Current
E Luff Non-Executive Director Non-Independent 20 Apr 2010 15 June 2012
Executive Chairman Non-Independent 31 Jul 2009 20 Apr 2010
Non-Executive Director Non-Independent 16 Nov 1998 31 Jul 2009
J Babarczy Non-Executive Director Independent 9 Dec 2009 Current
M Bowles Non-Executive Director Independent 30 May 2011 Current
At each annual general meeting one-third of the Directors or, if their number is a multiple of three,
then the number nearest to but not more than one-third of the Directors (excluding the Managing
Director) must retire from office as follows:
(a) The directors to retire by rotation at an annual general meeting are those directors who have
been longest in office since their last election or appointment.
(b) Directors elected or appointed on the same day may agree among themselves which of them
must retire.
A director must retire from office at the conclusion of the third annual general meeting after which the
director was elected, even if his or her retirement results in more than one-third of all directors retiring
from office. A retiring director will be eligible for re-election.
Responsibilities
The responsibilities of the board include:
- providing strategic guidance to the Company;
- reviewing and approving business and financial plans;
- monitoring strategy implementation and financial performance;
- liaising with the Company's auditors;
- appointing the Managing Director and reviewing his performance;
- enhancing and protecting the reputation of the organisation, and
- overseeing the operation of the systems and processes for compliance and risk management
reporting to shareholders.
Independent professional advice
Directors and Board committees have the right, in connection with their duties and responsibilities, to
seek independent advice at the Company's expense. Prior written approval of the Chairman is
required, but this will not be unreasonably withheld.
Performance assessment
The full Board is responsible for reviewing the performance of the Chairman. It is the responsibility of
the Chairman, to assess the performance of each of the Directors. Due to the changes to the Board,
the Board did not conduct performance reviews during the 2012 year.
Corporate reporting
The Chairman and Company Secretary have made attestations recommended by the ASX Corporate
Governance Council as to the Company's financial condition prior to the Board signing this report.
Board committees
In view of the Company's current stage and the small size of the Board, the roles that would otherwise
be performed by an audit committee, remuneration committee and nomination committee are
performed by the full Board.
External auditors
Company policy is to appoint external auditors who clearly demonstrate quality and independence.
The performance of the external auditor is reviewed annually and applications for tender of external
audit services are requested as deemed appropriate, taking into consideration assessment of
performance, existing value and tender costs. William Buck Audit (Vic) Pty Ltd was appointed as the
external auditor in 2009. The Corporations Act requires William Buck Audit (Vic) Pty Ltd to rotate
audit engagement partners on listed companies at least every five years.
An analysis of fees paid to the external auditors, including a breakdown of fees for non-audit services,
is provided in the Directors' Report and in the notes to the financial statements. It is the policy of the
external auditor to provide an annual declaration of their independence to the Board.
The external auditor is requested to attend the annual general meeting and be available to answer
shareholder questions about the conduct of the audit and the preparation and content of the audit
report.
Risk assessment and management
The Board is responsible for ensuring there are adequate policies in relation to risk management,
compliance and internal control systems. In summary, the Company policies are designed to ensure
strategic, operational, legal, reputation and financial risks are identified, assessed, effectively and
efficiently managed and monitored to enable achievement of the Company's business objectives.
Considerable importance is placed on maintaining a strong control environment. There is an
organisational structure with clearly drawn lines of accountability and delegation of authority.
Adherence to the Code of Conduct is required at all times and the Board actively promotes a culture
of quality and integrity.
The Company's risk management policy and the operation of the risk management and compliance
system is managed by the Board.
Detailed control procedures cover management accounting, financial reporting, project appraisal,
environment, health and safety, IT security, compliance and other risk management issues.
In addition, the Board requires that each major proposal submitted to the Board for decision is
accompanied by a comprehensive risk assessment and, where required, management's proposed
mitigation strategies.
Safety, Health and Environment Management System (SHEMS)
The Company recognises the importance of environmental and occupational health and safety
(OH&S) issues and is committed to the highest levels of performance. To help meet this objective the
SHEMS was established to facilitate the systematic identification of environmental and OH&S issues
and to ensure they are managed in a structured manner. This system has been operating for a
number of years and allows the Company to:
- monitor its compliance with all relevant legislation;
- continually assess and improve the impact of its operations on the environment;
- encourage employees to actively participate in the management of environmental and OH&S
issues; and
- use energy and other resources efficiently.
Information on compliance with significant environmental regulations is set out in the Directors'
Report.
Code of conduct
These policies set out the ethical standards that govern the conduct of all Directors and employees.
The Company recognises the interests of all stakeholders in the community and their role in creating
shareholder value. Every Director and employee is required at all times, to conduct themselves in a
manner consistent with the principles of honesty and integrity.
The Code requires Directors and employees, amongst other things, to comply with the law, to disclose
relevant interests that they may have and to act in the best interests of the Company. The Code also
covers confidentiality of information and respect of privacy.
Diversity policy
The Company has established a Workplace Diversity Policy which outlines the Board's commitment to
promoting a corporate culture that is supportive of diversity. This policy outlines the Company's
strategies for achieving diversity within the Company.
Given the Company's size and stage of development, the Company has not adopted targets for the
proportion of female employees within the organisation as proportional targets are difficult to achieve
with such low employee numbers. However Company policy for vacancies at the Board and Senior
Management level is to ensure that a diverse candidate pool is sought.
As at 31 December 2012 there were not any female Directors or employees within the Company.
Continuous disclosure and shareholder communication
The Company has policies and procedures on information disclosure that focus on continuous
disclosure of any information concerning the consolidated entity that a reasonable person would
expect to have a material effect on the price of the Company's securities. These policies and
procedures also include the arrangements the Company has in place to promote communication with
shareholders and encourage effective participation at general meetings.
When analysts are briefed on aspects of the Company's operations, the material used in the
presentation is released to the ASX. Procedures have also been established for reviewing whether
any price sensitive information has been inadvertently disclosed and, if so, this information is also
immediately released to the market.
Securities policy
This policy provides guidance to all Directors', officers and staff dealing in Tawana's securities. The
Securities Policy prohibits trading for all persons aware of unpublished price sensitive information
about the Company. In addition, it specifically limits the trade of Tawana's securities by the
Company's officers during certain periods of time prior to the release of both the half-year and full
year results.
Significant accounting policies
Details of significant accounting policies are set out in Note 1 of the notes forming part of the financial
statements.
Directors' and executives' remuneration
The performance of the Company depends upon the quality of its Directors and executives. To
prosper, the Company must attract, motivate and retain highly skilled Directors and executives.
The Board undertakes a review of the remuneration packages of all Directors and executive officers
on an annual basis. Remuneration packages are reviewed with due regard to performance and other
relevant factors.
In order to retain and attract executives of sufficient experience to facilitate the efficient and effective
management of the Company's operations, the Board may seek the advice of external advisors in
connection with the structure of remuneration packages.
Remuneration packages contain the following key elements:
- Primary benefits, including salary/fees;
- Post employments benefits, including superannuation and prescribed retirement benefits, and
- Other benefits
Details of Directors and Key Management Personnel are contained within the Directors' Report.
Non-Executive Directors' fees are determined by the Board based on external advice that is received
from time to time and with reference to fees paid to other Non-Executive Directors of comparable
companies, taking account of the specific duties in relation to the Company. Non-Executive Director's
fees are within the limit agreed to by shareholders and represent the responsibilities of the time spent
by the Non-Executive Directors' in fulfilling their duties to the Board.
Publicly available information
In accordance with the ASX Corporate Governance Council, the best practice recommendations
provide that specific documents should be publicly available.
All policies referred to in this section are available by contacting the Company.
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2012
Note Consolidated
2012 2011
$ $
Continuing operations
Revenue 4 98,526 173,413
Corporate costs (887,063) (534,557)
Depreciation (4,683) (4,230)
Employee benefits expense 5 (891,589) (502,333)
Exploration expenses written off (4,701,592) -
Other expenses (74,324) (109,052)
Loss before income tax expense (6,460,725) (976,759)
Income tax expense 6 - -
Net loss for the period after tax from
continuing operations (6,460,725) (976,759)
Loss from discontinued operations after tax 13 (12,799) (9,125,733)
Net loss for the period attributable to
Tawana Resources NL (6,473,524) (10,102,492)
Other comprehensive income / (loss)
Gain / (loss) on translation of foreign operations (44,751) 2,734,408
Other comprehensive income / (loss) for the
period, net of tax (44,751) 2,734,408
Total comprehensive income / (loss) for the
period attributable to Tawana Resources NL (6,518,275) (7,368,084)
Earnings per share from continuing and
discontinuing operations
Basic and diluted loss (cents) 19 (0.75) (1.26)
Earnings per share from continuing operations
Basic and diluted loss (cents) 19 (0.74) (0.12)
Earnings per share from discontinued
operations
Basic and diluted loss (cents) 19 (0.01) (1.14)
The above Statement of Comprehensive Income should be read in conjunction with the
accompanying notes.
STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2012
Note Consolidated
2012 2011
$ $
Current assets
Cash and cash equivalents 17(a) 1,678,614 3,722,991
Trade and other receivables 7 85,513 42,326
Assets held for sale 8 - 133,478
Total current assets 1,764,127 3,898,795
Non-current assets
Trade and other receivables 7 51,047 39,787
Property, plant and equipment 52,024 7,534
Exploration expenditure 9 1,413,186 5,081,927
Total non-current assets 1,516,257 5,129,248
Total assets 3,280,384 9,028,043
Current liabilities
Trade and other payables 10 121,374 83,223
Provisions 22,556 26,015
Total current liabilities 143,930 109,238
Non-current liabilities
Provisions 39,264 -
Total non-current liabilities 39,264 -
Total liabilities 183,194 109,238
Net assets 3,097,190 8,918,805
Equity
Contributed equity 11 45,631,150 45,431,150
Reserves 12 2,369,859 2,884,143
Accumulated losses (44,903,819) (39,396,488)
Total equity 3,097,190 8,918,805
The above Statement of Financial Position should be read in conjunction with the accompanying
notes.
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2012
Consolidated
Issued Reserves Accumulated Total
capital losses
$ $ $ $
Balance at 1 January 2011 36,482,279 (281,859) (29,293,996) 6,906,424
Loss for the period - - (10,102,492) (10,102,492)
Other comprehensive income for the
period - 2,734,408 - 2,734,408
Total comprehensive loss for the
period - 2,734,408 (10,102,492) (7,368,084)
Transactions with owners in their
capacity as owners
Shares issued, net of costs 8,948,871 (398,290) - 8,550,581
Share options issued and vested - 829,884 - 829,884
Balance at 31 December 2011 45,431,150 2,884,143 (39,396,488) 8,918,805
Balance at 1 January 2012 45,431,150 2,884,143 (39,396,488) 8,918,805
Loss for the period - - (6,473,524) (6,473,524)
Other comprehensive income for the
period - (44,751) - (44,751)
Total comprehensive loss for the
period - (44,751) (6,473,524) (6,518,275)
Transactions with owners in their
capacity as owners
Shares issued, net of costs 200,000 - - 200,000
Share options exercised or expired (966,193) 966,193
Share options issued and vested - 496,660 - 496,660
Balance at 31 December 2012 45,631,150 2,369,859 (44,903,819) 3,097,190
The above Statement of Changes in Equity should be read in conjunction with the accompanying
notes.
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2012
Note Consolidated
2012 2011
$ $
Cash flows from operating activities
Receipts from customers 13,746 31,388
Payments to suppliers and employees (1,478,832) (1,549,471)
Interest received 98,537 169,277
Interest paid - -
Net cash flows used in operating activities 17(b) (1,366,549) (1,348,806)
Cash flows from investing activities
Proceeds from sale of plant and equipment - 34,653
Purchase of plant and equipment (49,173) (11,764)
Proceeds from sale of discontinued operation 248,947 13,906
Payments for exploration (1,064,853) (592,366)
Net cash flows used in investing activities (865,079) (555,571)
Cash flows from financing activities
Proceeds from issue of shares 200,000 5,050,000
Capital raising costs - (256,350)
Net cash from financing activities 200,000 4,793,650
Net increase in cash and cash equivalents (2,031,628) 2,889,273
Cash and cash equivalents at beginning of
period 3,722,991 835,470
Effects of exchange rates on cash holdings in
foreign currencies (12,749) (1,752)
Cash and cash equivalents at end of period 17(a) 1,678,614 3,722,991
The above Statement of Cash Flows should be read in conjunction with the accompanying notes.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2012
1. Summary of significant accounting policies
The principal accounting policies adopted in the preparation of these financial statements are
set out below. These policies have been consistently applied to all the years presented, unless
otherwise stated. The financial statements include the consolidated entity consisting of Tawana
Resources NL and its subsidiaries. For the purpose of preparing the consolidated financial
statements, the Company is a for-profit entity.
(a) Basis of preparation
This general purpose financial report has been prepared in accordance with Australian
Accounting Standards, other authoritative pronouncements and the Australian Accounting
Interpretations and the Corporations Act 2001.
The financial report is presented in Australian dollars and rounded to the nearest dollar.
The financial report is prepared on a going concern basis.
These financial statements have been prepared under the historical cost convention.
Compliance with International Financial Reporting Standards
These financial statements comply with Australian Accounting Standards (AASBs).
Compliance with AASBs ensures that these financial statements, comprising the financial
statements and notes thereto, comply with International Financial Reporting Standards (IFRS).
Critical accounting estimates
The preparation of financial statements in conformity with AASBs requires the use of certain
critical accounting estimates. It also requires management to exercise its judgement in the
process of applying the consolidated entity's accounting policies. The areas involving a higher
degree of judgement or complexity, or areas where assumptions and estimates are significant
to the financial statements, are disclosed in Note 3.
(b) Principles of consolidation
Subsidiaries
The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of
Tawana Resources NL as at 31 December 2012 and the results of all subsidiaries for the year
then ended. Tawana Resources NL and its subsidiaries together are referred to in these
financial statements as the Group or the consolidated entity.
Subsidiaries are all those entities, including special purpose entities, over which the
consolidated entity has the power to govern the financial and operating policies, generally
accompanying a shareholding of more than one-half of the voting rights. The existence and
effect of potential voting rights that are currently exercisable or convertible are considered when
assessing whether the consolidated entity controls another entity.
Subsidiaries are fully consolidated from the date on which control is transferred to the
consolidated entity. They are de-consolidated from the date that control ceases.
Intercompany transactions, balances and unrealised gains on transactions between
consolidated entity companies are eliminated. Unrealised losses are also eliminated unless the
transaction provides evidence of the impairment of the asset transferred. Accounting policies of
subsidiaries have been changed where necessary to ensure consistency with the policies
adopted by the consolidated entity.
(c) Foreign currency translation
The presentation currency of Tawana Resources NL and its subsidiaries is Australian Dollars
(A$). The functional currency of Tawana Resources NL is Australian Dollars and the functional
currency of the overseas subsidiaries is South African Rand (Tawana Resources SA (Pty) Ltd
and Diamond Resources (Pty) Ltd), Botswana Pula (Seolo Botswana Pty Ltd) and US Dollars
(Kenema-Ma Holdings Liberia Pty Ltd).
Transactions in foreign currencies are initially recorded in the functional currency at the
exchange rates prevailing at the date of the transaction. Monetary assets and liabilities
denominated in foreign currencies are revalued at the rate of exchange prevailing at the end of
the reporting period. Foreign exchange gains and losses resulting from the settlement of such
transactions and from translation at financial year end exchange rates are recognised in the
profit and loss.
As at the end of the reporting period the assets and liabilities of overseas subsidiaries are
translated into the presentation currency of Tawana Resources NL at the rate of exchange
prevailing at the end of the reporting period and the Statement of Comprehensive Income is
translated at the weighted average exchange rates for the period. All translation differences are
recognised in the foreign currency translation reserve.
On disposal of a foreign entity, the deferred cumulative amount recognised in equity relating to
that particular foreign entity is recognised in the Statement of Comprehensive Income.
(d) Revenue recognition
Revenue is measured at the fair value of consideration received or receivable. Revenue is
recognised to the extent that it is probable that the economic benefits will flow to the
consolidated entity and the revenue can be reliably measured. The following specific
recognition criteria must also be met before revenue is recognised.
Interest
Interest is recognised as it accrues using the effective interest method.
(e) Income tax
The income tax expense or revenue for the period is the tax payable on the current period's
taxable income based on the applicable income tax rate for each jurisdiction adjusted by
changes in deferred tax assets and liabilities attributable to temporary differences and to
unused tax losses.
Deferred income tax is provided in full using the liability method on temporary differences
arising between the tax bases of assets and liabilities with the carrying amounts in the
consolidated financial statements. However, the deferred income tax is not accounted for if it
arises from initial recognition of an asset or liability in a transaction other than a business
combination, that at the time of the transaction, affects neither accounting nor taxable profit or
loss. Deferred income tax is determined using tax rates (and laws) that have been enacted or
substantially enacted at the reporting date and are expected to apply when the related deferred
income tax asset is realised or the deferred income tax liability is settled.
Deferred tax assets are recognised for deductible temporary differences and unused tax losses
only if it is probable that future taxable amounts will be available to realise those temporary
differences and losses.
Deferred tax liabilities and assets are not recognised for temporary differences between the
carrying amount and the tax base of investments in controlled entities where the parent entity is
able to control the timing of the reversal of temporary differences and it is probable that the
differences will not be reversed in the foreseeable future.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset
current tax assets and liabilities, and when the deferred tax balances relate to the same taxation
authority. Current tax assets and tax liabilities are offset where the entity has a legally
enforceable right to offset and intends either to settle on a net basis, or to realise the asset and
settle the liability simultaneously.
Current and deferred tax balances that are attributable to amounts recognised directly in equity,
are also recognised directly in equity.
(f) Impairment of assets
Assets, except for exploration and evaluation (refer to Note 1(g)) are reviewed for impairment
whenever events or changes in circumstances indicate that the carrying amount may not be
recoverable. An impairment loss is recognised for the amount by which the asset's carrying
amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's
fair value less costs to sell and value in use. For the purposes of assessing impairment, assets
are grouped at the lowest levels for which there are separately identifiable cash inflows which
are largely independent of the cash inflows from other assets or groups of assets (cash-
generating units). Non-financial assets, other than goodwill that suffered an impairment, are
reviewed for possible reversal of the impairment at each subsequent reporting date.
(g) Exploration and evaluation expenditure
Exploration and evaluation expenditure incurred is accumulated in respect of each identifiable
area of interest. The costs are only carried forward to the extent that they are expected to be
recouped through the successful development of the area or where activities in the area have
not yet reached a stage that permits reasonable assessment of the existence of economically
recoverable resources and further work is intended to be performed.
Accumulated costs in relation to an abandoned area will be written off in full against the profit
and loss in the year in which the decision to abandon the area is made.
When production commences, the accumulated costs for the relevant area of interest will be
amortised over the life of the area according to the rate of depletion of the economically
recoverable resources.
A regular review is undertaken of each area of interest to determine the appropriateness of
continuing to carry forward costs in relation to that area of interest.
(h) Property, plant and equipment
Plant and equipment and buildings are stated at cost less accumulated depreciation and any
impairment losses. Land is stated at cost less any impairment losses. Depreciation is
calculated on a straight line basis over the estimated useful life of the asset except for motor
vehicles which is on a diminishing value as follows:
Freehold buildings over 10 years
Plant and equipment over 7 years
Motor vehicle (Australia) 22.5%
Motor vehicle (overseas) over 4 years
The carrying values of all assets are reviewed for impairment when events or changes in
circumstances indicate the carrying value may not be recoverable in accordance with Note 1(f).
The residual value, useful lives and depreciation methods are reviewed and adjusted if
appropriate, at the end of each reporting period.
Gains and losses on disposals are determined by comparing proceeds with the carrying
amount. These are included in the Statement of Comprehensive Income.
(i) Inventories
Inventories consisting of rough diamonds are stated at lower of cost or estimated net realisable
value. Cost comprises direct materials, direct labour, and an appropriate proportion of variable
and fixed overhead expenditure.
(j) Trade and other receivables
Trade receivables are recognised initially at fair value and subsequently measured at amortised
cost using the effective interest method, less provision for impairment. Trade receivables are
generally due for settlement within 30 days.
Collectability of trade receivables is reviewed on an ongoing basis. Debts which are known to
be uncollectible are written off by reducing the carrying amount directly. An allowance account
is used when there is objective evidence that the consolidated entity will not be able to collect
all amounts due according to the original terms of the receivables. Significant financial
difficulties of the debtor, probability that the debtor will enter bankruptcy or financial realisation,
and default or delinquency in payments, are considered indicators that the trade receivable is
impaired. The amount of the impairment allowance is the difference between the asset's
carrying amount and the present value of estimated future cash flows, discounted at the original
effective interest rate. Cash flows relating to short-term receivables are not discounted if the
effect of discounting is immaterial.
The amount of the impairment loss is recognised in the Statement of Comprehensive Income
within other expenses.
When a trade receivable, for which an impairment allowance had been recognised, becomes
uncollectible in a subsequent period, it is written off against the allowance account. Subsequent
recoveries of amounts previously written off are credited against other expenses in the
Statement of Comprehensive Income.
(k) Cash and cash equivalents
Cash and short-term deposits in the Statement of Financial Position comprise cash at bank and
in hand and short-term deposits with an original maturity of three months or less that are readily
converted into known amounts of cash. For the purposes of the statement of cash flows, cash
and cash equivalents consist of cash and cash equivalents as defined above, net of outstanding
bank overdrafts.
(l) Employee entitlements
Wages and Salaries and Annual Leave
Liabilities for wages and salaries, including non-monetary benefits and annual leave expected
to be settled within 12 months of the reporting date are recognised in other payables in respect
of employees' services up to the reporting date and are measured at the amounts expected to
be paid when the liabilities are settled.
Share-based payments
Share-based compensation benefits are provided to employees in accordance with the Tawana
Resources Employee Option Plan, an employee share scheme.
The fair value of options granted under the Tawana Resources Employee Option Plan is
recognised as an employee benefit expense with a corresponding increase in equity. The fair
value is measured at grant date and recognised over the period during which the employees
become unconditionally entitled to the options.
Long Service Leave
Liabilities for long service leave are recognised, and are measured as the present value of
expected future payments to be made in respect of services provided by employees.
(m) Provisions
Provisions are recognised when the consolidated entity has a present obligation, legal or
constructive, as a result of a past event and it is probable that an outflow of resources
embodying economic benefits will be required to settle the obligation and a reliable estimate
can be made of the amount of the obligation.
(n) Leases
Leases in which a significant portion of the risks and rewards of ownership are retained by the
lessor are classified as operating leases. Payments made under operating leases, net of any
incentives received from the lessor, are charged to the Statement of Comprehensive Income on
a straight-line basis over the period of the lease.
(o) Provision for rehabilitation
Environmental obligations associated with the retirement or disposal of long lived assets will be
recognised when the disturbance occurs and is based on the extent of damage incurred. The
provision is measured at the present value of the future expenditure, and a corresponding
rehabilitation asset is also recognised. On an ongoing basis, the rehabilitation liability will be re-
measured in line with the changes in the time value of money (recognised as an expense in the
Statement of Comprehensive Income and an increase in the provision), and additional
disturbances will be recognised as additions to a corresponding asset and rehabilitation liability.
The rehabilitation asset will be accounted for in accordance with the accounting policy
applicable to the asset to which it relates (i.e. exploration expenditure).
(p) Trade and other payables
These amounts represent liabilities for goods and services provided to the consolidated entity
prior to the end of financial year which are unpaid. The amounts are unsecured and are usually
paid within 30 days of recognition.
(q) Other taxes
Revenues, expenses and assets are recognised net of the amount of GST or VAT except:
- where the GST / VAT incurred on a purchase of goods and services is not recoverable
from the taxation authority, in which case the GST / VAT is recognised as part of the cost
of acquisition of the asset or as part of the expense item as applicable; and
- receivables and payables are stated with the amount of GST / VAT included.
The net amount of GST recoverable from, or payable to, the taxation authority is included as
part of receivables or payables in the Statement of Financial Position.
Cash flows are included in the Statement of Cash Flows on a gross basis and the GST / VAT
component of cash flows arising from investing and financing activities, which is recoverable
from, or payable to, the taxation authority, are classified as operating cash flows.
Commitments and contingencies are disclosed net of the amount of GST / VAT recoverable
from, or payable to, the taxation authority.
(r) Contributed equity
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of
new shares are shown in equity as a deduction, net of tax, from the proceeds. Incremental
costs directly attributable to the issue of new shares for the acquisition of a business are not
included in the cost of the acquisition as part of the purchase consideration.
(s) Earnings per share
Basic earnings per share
Basic earnings per share is calculated by dividing the profit/(loss) attributable to equity holders
of the Company, excluding any costs of servicing equity other than ordinary shares, by the
weighted average number of ordinary shares outstanding during the financial year, adjusted for
bonus elements in ordinary shares issued during the year.
Diluted earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per
share to take into account the after income tax effect of interest and other financing costs
associated with dilutive potential ordinary shares and the weighted average number of shares
assumed to have been issued for no consideration in relation to dilutive potential ordinary
shares.
(t) Preparation of financial statements in relation to the consolidated entity
From 28 June 2010, the Corporations Act 2001 no longer requires the preparation of parent
entity accounts, for the purpose of streamlining parent entity reporting. Where the entity is
required to prepare financial statements in relation to the consolidated entity, the Corporations
Regulations 2001 (the Principal Regulations) specify supplementary information about the
parent entity that is to be included in a note to the consolidated financial statements. This
information is disclosed in Note 23.
(u) New accounting standards and interpretations
The AASB has issued new and amended accounting standards and interpretations that have
mandatory applications for the current and reporting periods. With the exception of those
standards not available for early adoption for these financial statements, the consolidated entity
has decided to adopt all of these accounting standards and interpretations. There was no
significant change to these financial statements arising from the adoption of those standards
and interpretations.
2. Financial risk management
The consolidated entity's exploration activities are being funded by equity and do not expose
the consolidated entity to significant financial risks. There are no speculative or derivative
financial instruments. Funds are invested for various short term periods to match forecast cash
flow requirements.
(a) Market risk
Foreign currency risk
The consolidated entity has foreign operations with functional currencies in the South African
Rand, the Botswana Pula and the United States Dollar. Both the parent company and each
subsidiary transacts predominantly in its own functional currency with little or no foreign
currency risk. Cash invested into each foreign operation through intercompany loan accounts,
with no fixed date of maturity on those loans, from the parent to its foreign operations is
considered to form part of the parent company's net investment in its foreign operations and
therefore is considered by the parent company to not represent a foreign currency risk.
Cash flow and fair value interest rate risk
As the consolidated entity has no significant interest-bearing assets or liabilities, the
consolidated entity's income and operating cash flows are not materially exposed to changes in
market interest rates.
(b) Credit risk
Management does not actively manage credit risk.
The consolidated entity has no significant exposure to credit risk from external parties at period
end given all the counterparties to its credit exposures are related entities of the consolidated
entity. The maximum exposure to credit risk from related entities of the consolidated entity at
the reporting date is equal to the carrying value of financial assets at 31 December 2012.
Other receivables are of a low value. Activity with trade debtors is limited and the recoverability
has not been brought into question. There is no history of bad debts.
(c) Liquidity and capital risk management
The consolidated entity's objectives when managing capital are to safeguard their ability to
continue as a going concern, so that they can continue to provide returns for shareholders and
benefits for other stakeholders and to maintain an optimal capital structure to reduce the cost of
capital. In order to maintain or adjust the capital structure, the consolidated entity may adjust
the amount of dividends paid to shareholders, return capital to shareholders, issue new shares
or sell assets to reduce debt.
During 2012, the consolidated entity's strategy, which was unchanged from 2011, was to keep
borrowings to a minimum. The Company's equity management is determined by funds required
to undertake exploration activities and meet its corporate and other costs. Where joint venture
partners participate in particular projects the partners contribute monthly cash calls in proportion
to their respective interests or as agreed under any buy-in agreement.
Liquidity risk arises from the financial liabilities of the Group and the Group's subsequent ability
to meet their obligations to repay their financial liabilities as and when they fall due.
The Group's objective is to maintain a balance between continuity of funding and flexibility
through the use of equity funding and cash and short-term deposits sufficient to meet the
Group's current cash requirements.
(d) Fair value estimation
The carrying amount of financial assets and financial liabilities recorded in the financial
statements approximate their respective fair values determined in accordance with the
accounting policies disclosed in Note 1.
3. Critical accounting estimates and judgements
Estimates and judgements are continually evaluated and are based on historical experience
and other factors, including expectation of future events that may have a financial impact on the
entity and that are believed to be reasonable under the circumstances.
Critical accounting estimates and assumptions
The consolidated entity makes estimates and assumptions concerning the future. The resulting
accounting estimates, will by definition, seldom equal the related actual results. The estimates
that have a significant risk of causing a material adjustment to the carrying amounts of assets
and liabilities within the next financial year are discussed below.
(i) Recoverability of exploration expenditure
The consolidated entity tests annually whether the exploration and evaluation expenditure
incurred in identifiable areas of interest is expected to be recouped through the successful
development of the area or where activities in the area have not yet reached a stage that
permits reasonable assessment of the existence of reserves and further work is expected to be
performed. All expenditure that does not meet these criteria is expensed in accordance with
Note 1(g).
(ii) Share based payment valuations
Details relating to the shares based payment valuations are detailed in Note 20.
4. Revenue and other income
Consolidated
2012 2011
$ $
Revenue from continuing operations
Interest received 98,526 169,253
Other revenue - 4,160
98,526 173,413
5. Expenses
Expenses from continuing operations
includes:
Auditors' remuneration 45,000 67,032
Compliance and regulatory fees 174,795 101,203
Consultancy and legal fees 199,537 143,879
Travel expenses 135,532 106,554
554,864 418,668
Employee benefits expense includes:
Salaries and wages 228,253 240,806
Superannuation 28,054 24,225
Directors' fees 136,667 160,000
Share-based payments 496,660 75,619
Other employee expenses 1,955 1,683
891,589 502,333
6. Income tax
Tax losses
The Group has unused tax losses for which no benefit has been recognised, however the
Directors are of the opinion that, given uncertainty around the amount of such losses, it would
be misleading to quantify these losses.
The future income tax benefit attributable to these losses has not been brought to account
because the benefit is not probable of realisation. The potential future income tax benefits
which may arise from these losses will only be realised if:
- the consolidated entity derives future assessable income of a nature and sufficient
amount to enable the benefit of losses to be realised;
- the consolidated entity continues to comply with the conditions of deductibility imposed in
each legislative environment, and
- no changes in tax legislation adversely affect the consolidated entity in realising the
benefit from the deduction for the losses.
Income tax recognised in profit or loss
2012 2011
$ $
Current tax
Current tax expense in respect of the current
year - -
Adjustments recognised in the current year in
relation to the current tax of prior years - -
- -
Deferred tax
Deferred tax expense recognised in the current
year - -
- -
Total income tax expense recognised in the
current year relating to continuing operations - -
The income tax expense for the year can be reconciled to the accounting profit as follows:
Loss before tax from continuing operations (6,460,725) (976,759)
Income tax benefit calculated at 30% (2011:
30%) (1,938,217) (293,028)
Foreign taxes paid - -
Effect of unused tax losses and tax offsets not
recognised as deferred tax assets 1,938,217 293,028
- -
Adjustments recognised in the current year in
relation to the current tax of prior years - -
Total income tax expense recognised in the
current year relating to continuing operations - -
The tax rate used in the above reconciliation is the corporate tax rate of 30% payable by
Australian corporate entities on taxable profits under Australian tax law. There has been no
change in the corporate tax rate when compared with the previous reporting period
7. Trade and other receivables
Consolidated
2012 2011
$ $
Current
Trade debtors 29,065 10,686
GST and VAT receivable 6,867 7,226
Prepayments 49,581 24,414
85,513 42,326
Non-current
Other deposits 51,047 39,787
8. Assets held for sale
Property, plant and equipment - 126,689
Other assets - 6,789
- 133,478
9. Exploration expenditure
The exploration and evaluation expenditure relates to the consolidated entity's projects in South
Africa and Botswana.
Movement in carrying values
Consolidated
2012 2011
$ $
Balance at beginning of year 5,081,927 2,923,147
Expenditure during the year 1,064,853 5,081,927
Expenditure written off during the year (4,701,592) (2,923,147)
Foreign currency translation (32,002) -
Balance at end of year 1,413,186 5,081,927
10. Trade and other payables
Current
Trade creditors 45,186 19,757
Other creditors and accruals 76,188 63,466
121,374 83,223
11. Contributed equity
(a) Issued capital
Ordinary shares, fully paid 45,631,150 45,431,150
(b) Movements in share capital
2012 2011 2012 2011
Number Number $ $
Balance at beginning of year 856,629,043 601,455,755 45,431,150 36,482,279
Shares issued during year 20,000,000 255,173,288 200,000 9,955,221
Transaction costs relating to
share issues - - - (1,006,350)
Balance at end of year 876,629,043 856,629,043 45,631,150 45,431,150
(c) Terms and conditions of contributed equity
Holders of ordinary shares are entitled to receive dividends as declared from time to time and
are entitled to one vote per share at shareholders' meetings in a poll or one vote per
shareholder on a show of hands.
In the event of winding up of the Company, ordinary shareholders rank after all other
shareholders and creditors and are fully entitled to any proceeds of liquidation.
12. Reserves
Note Consolidated
2012 2011
$ $
Foreign currency translation (a) (45,306) (555)
Options (b) 2,392,281 2,861,814
Asset revaluation (c) 22,884 22,884
2,369,859 2,884,143
(a) Foreign currency translation reserve
Exchange differences arising from the translation of foreign controlled entities are taken to the
foreign currency translation reserve, as described in Note 1(c).
(b) Options reserve
The options reserve records the fair value of options issued but not exercised.
Balance at beginning of year 2,861,814 2,430,220
Options expense for year 20 496,660 829,884
Options exercised and expired during
year (966,193) (398,290)
Balance at end of year 2,392,281 2,861,814
(c) Asset revaluation reserve
The asset revaluation reserve records revaluations of non-current assets. This is a historical
reserve and there have been no movements in the years ended 31 December 2012 and 2011.
Balance at end of year 22,884 22,884
13. Discontinued operations
On 9 March 2011 the Group announced that it had commenced an ongoing rationalisation
program in respect of its existing interests in South Africa and Botswana. The Group had
originally announced a decision to sell its interest in the Kareevlei project on 18 August 2010,
which had been classified as a discontinued operation in the prior financial year. As at
December 2011 the Group commenced a program to market and sell its remaining interests in
South Africa and Botswana. As such, the assets that formed part of the disposal group were
reclassified as Assets Held for Sale in the statement of financial position and all revenues and
expenditures relating to the disposal group were reclassified as a discontinued operation in the
statement of comprehensive income for the year ended 31 December 2011. The assets held
for sale have been valued by the directors at cost, which in their estimation, is below their net
fair value less distribution costs. In the process of reviewing those recoverable values, amounts
previously capitalised as exploration expenditure under tenements, which the Group still holds
title to, have been written down by $2,923,147 to $nil.
In addition to the above, the Group considered the likelihood of recouping an amount receivable
from Rolatseng Mining CC ("Rolatseng"), which at 31 December 2010 was stated at a value of
$2,960,354. The receivable is secured by the underlying title against the Kareevlei interest.
Due to the delay in receipting further payments from Rolatseng or to progress the Kareevlei
interest to trial mining phase which represents a key payment milestone for the interest, the
Group has decided to write down the receivable to $nil. This write-down forms part of the
discontinued operation concerning the Kareevlei interest.
The financial performance of the discontinued operations, which is included in the Statement of
Comprehensive Income as loss from discontinued operations, and adjusted to the previous
year's comparatives, is as follows:
Consolidated
2012 2011
$ $
Sale of Kareevlei interest - -
Other revenues 141,965 51,617
Corporate costs (154,764) (527,005)
Employee benefits expense - (31,881)
Foreign currency translation losses realised - (2,734,963)
Impairment of capitalised area of interest - (2,923,147)
Impairment of receivable from Rolatseng
Mining CC - (2,960,354)
(12,799) (9,125,733)
14. Key management personnel disclosures
(a) Directors and other key management personnel
The following persons were directors of Tawana Resources NL during the financial year:
Warwick Grigor (resigned 28 January 2013)
Lennard Kolff
Euan Luff (resigned 15 June 2012)
Julian Babarczy
Matthew Bowles
There were no key management personnel of the group for the year outside the Directors
(b) Compensation of key management personnel
Short-term employee benefits 351,711 381,667
Post-employment benefits 28,054 24,225
Share-based payments 422,500 75,619
802,265 481,511
(c) Equity instrument disclosures relating to key management personnel
(i) Option holdings
The number of options over ordinary shares in the Company held during the financial year by
each director of Tawana Resources NL and other key management personnel of the Company,
including their personally related parties, are set out below.
2012
Name Balance at Granted Exercised Options Balance at Options
start of during year during year lapsed end of year vested and
year as remun- during year exercisable at
eration end of year
Number Number Number Number Number Number
Directors
Mr W Grigor - 5,000,000 - - 5,000,000 5,000,000
Mr L Kolff 10,000,000 10,000,000 - (5,000,000) 15,000,000 15,000,000
Mr E Luff * 6,104,150 - - - - -
Mr J Babarczy - 5,000,000 - - 5,000,000 5,000,000
Mr M Bowles 15,000,000 5,000,000 - - 20,000,000 20,000,000
31,104,150 25,000,000 - (5,000,000) 45,000,000 45,000,000
* Closing Balance at date of resignation
2011
Name Balance at Granted Exercised Other Balance at Options
start of during year during year changes end of year vested and
year as remun- during year exercisable at
eration end of year
Number Number Number Number Number Number
Directors
Mr W Grigor - - - - - -
Mr L Kolff 10,000,000 - - - 10,000,000 10,000,000
Mr E Luff 6,104,150 - - - 6,104,150 6,104,150
Mr J Babarczy - - - - - -
Mr M Bowles * 15,000,000 - - - 15,000,000 15,000,000
Mr H Hill - - - - - -
31,104,150 - - 31,104,150 31,104,150
* Opening balance at date of appointment
(ii) Shareholdings
The number of shares in the Company held during the financial year by each director of
Tawana Resources NL and other key management personnel, including their personally related
parties, is set out below. There were no shares granted during the reporting year as
remuneration (2011: Nil).
2012
Name Balance at Balance at Received Other Balance at Balance at
start of the date of during the acquisition date of end of the
year appoint- year on of shares resignation year
ment exercise of during the
options year
Number Number Number Number Number Number
Directors
Mr W Grigor 27,850,000 - - - - 27,850,000
Mr L Kolff - - - - - -
Mr E Luff * 21,589,740 - - - 21,589,740 -
Mr J Babarczy 25,173,288 - - - - 25,173,288
Mr M Bowles - - - - - -
74,613,028 - - - 21,589,740 53,023,288
* Closing balance at date of resignation
2011
Name Balance at Balance at Received Other Balance at Balance at
start of the date of during the acquisition date of end of the
year appoint- year on of shares resignation year
ment exercise of during the
options year
Number Number Number Number Number Number
Directors
Mr W Grigor 27,850,000 - - - - 27,850,000
Mr L Kolff - - - - - -
Mr E Luff 20,689,740 - - 900,000 - 21,589,740
Mr J Babarczy 25,000,000 - - 173,288 - 25,173,288
Mr M Bowles - - - - - -
Mr H Hill - - - - - -
Key management
personnel
Mr L Kolff - - - - - -
73,539,740 - - 1,073,288 - 74,613,028
(d) Loans to key management personnel
There were no loans to key management personnel of the consolidated entity, including their
personally related parties, as at 31 December 2012 or 31 December 2011.
(e) Other transactions with key management personnel
Mr E Luff, a director of the Company, is a senior partner of the legal firm Wilmoth Field Warne,
which received $Nil (2011: $50,003) in fees for the provision of legal services. Payments were
based on commercial terms and conditions.
15. Details of controlled entities
Name Country of Interest held by the
incorporation consolidated entity
2012 2011
% %
Parent
Tawana Resources NL Australia
Controlled entities
Seolo Botswana (Pty) Ltd Botswana 100 100
Tawana Resources (Pty) Ltd South Africa 100 100
Diamond Resources (Pty) Ltd South Africa 100 100
Kenema-Man Holdings Liberia Pty Ltd Australia 100 100
Tawana Liberia Inc Liberia 100 100
16. Segment information
The consolidated entity operates wholly in one business segment. AASB 8 requires operating
segments to be identified on the basis of internal reports about components of the Group that
are regularly reviewed by the chief operating decision maker in order to allocate resources to
the segments and to assess their performance.
Information reported to the Group's chief operating decision maker for the purposes of resource
allocation and assessment of segment performance is focused on the geographical region of
operations. The Group's reportable segments under AASB 8 are therefore within one
geographical segment, being Africa.
17. Notes to the Statement of Cash Flows
(a) Reconciliation of cash and cash equivalents
For the purposes of the Statement of Cash Flows, cash includes cash on hand and at call in
deposits with banks, net of bank overdrafts. Cash at the end of the year is shown in the
Statement of Financial Position as:
Consolidated
2012 2011
$ $
Cash on hand and at bank 1,658,614 3,702,991
Cash on deposit 20,000 20,000
1,678,614 3,722,991
(b) Reconciliation of net loss after tax to net cash flows from operations
Consolidated
2012 2011
$ $
Net loss (6,473,524) (10,102,492)
Adjustments for:
Depreciation 4,683 4,230
Impairment and write off of non-current
assets 4,701,592 9,998
Profit on sale of property, plant and
equipment (115,469) (6,300)
Discontinued operation - 8,696,090
Share-based payments 496,660 79,884
Interest paid through share issues - -
Unrealised foreign currency gain / loss on
translation - -
Changes in assets and liabilities
(Increase) / decrease in:
Trade and other receivables (54,447) (64,472)
Inventories - 17,171
Increase / (decrease) in:
Trade and other payables 38,157 (26,163)
Interest-bearing liabilities - 2,665
Provisions 35,805 40,583
Net cash from operating expenses (1,366,549) (1,348,806)
18. Auditors' remuneration
William Buck
Audit services 45,000 61,500
Non-audit services - -
45,000 61,500
Auditor of subsidiaries
Pricewaterhouse Coopers
Audit services 4,478 5,532
Non-audit services - -
4,478 5,532
19. Loss per share
Classification of securities as ordinary shares
The Company has only one category of ordinary shares included in basic loss per share.
Classification of securities as potential ordinary shares
There are currently no securities to be classified as dilutive potential ordinary shares on issue.
2012 2011
Number Number
Weighted average number of ordinary shares used in the
calculation of basic loss per share 865,231,783 801,529,216
$ $
Net loss from continuing and discontinuing operations (6,473,524) (10,102,492)
Net loss from continuing operations (6,460,725) (976,759)
The loss per share calculation as disclosed on the Statement of Comprehensive Income does
not include instruments that could potentially dilute basic earnings per share in the future as
these instruments were anti-dilutive in the periods presented. A summary of such instruments
is as follows:
Equity securities Number of Number of
securities potential
ordinary
shares
Options over ordinary shares 180,500,000 180,500,000
No options have been issued subsequent to year end but prior to the date of issue of these
financial statements.
20. Share-based payments
Summary of options on issue
Issue date Quantity Grant date Expiry date Exercise price
17 Jan 2009 6,000,000 18 Dec 2008 17 Jan 2013 $0.10
17 Jan 2009 6,750,000 18 Dec 2008 17 Jan 2013 $0.07
17 Jan 2009 6,750,000 18 Dec 2008 17 Jan 2014 $0.10
23 Feb 2010 50,000,000 23 Feb 2010 23 Feb 2013 $0.01
9 Sep 2010 50,000,000 9 Sep 2010 30 Jul 2013 $0.01
9 Sep 2010 5,000,000 9 Sep 2010 9 Sep 2014 $0.05
8 Mar 2011 25,000,000 8 Mar 2011 8 Mar 2014 $0.01
10 Nov 2011 1,250,000 10 Nov 2011 10 Nov 2013 $0.03
10 Nov 2011 1,250,000 10 Nov 2011 10 Nov 2015 $0.05
28 May 2012 27,000,000 28 May 2012 30 April 2013 $0.036
27 June 2012 1,500,000 27 June 2012 30 April 2015 $0.036
180,500,000
All share options are exercisable at year end.
During the year ended 31 December 2012, the following options were exercised:
9 Sep 2010 20,000,000 9 Sep 2010 31 Jul 2012 $0.01
Fair value of options granted during the year
The assessed fair value at grant date of options granted to individuals is allocated equally over
the period from grant date to vesting date. Fair values at grant date are independently
determined using a Black Scholes option pricing model that takes into account the exercise
price, term of the option, the share price at grant date and expected price volatility of the
underlying share, the expected dividend yield and the risk free interest rate for the term of the
option.
The following options were issued during the year ended 31 December 2012:
Issue date Quantity Grant date Expiry date Exercise Fair Total fair
price value value
per
option
28 May 12 27,000,000 28 May 12 30 April 15 $0.036 $0.0169 $456,300
27 June 12 1,500,000 27 June 12 30 April 15 $0.036 $0.0169 $25,350
28,500,000 $481,650
The model inputs for the options granted during the year were as follows:
A B
Quantity 27,000,000 1,500,000
Grant date 28 May 12 27 June 12
Expiry date 30 April 15 30 April 15
Grant date share price $0.03 $0.03
Exercise price $0.036 $0.036
Expected volatility 100% 100%
Option life (years) 2.5 2.5
Expected dividend yield 0% 0%
Risk free rate at grant date 3.26% 3.26%
The cost of the issue of options was recorded in the financial statements as follows:
- options issued during the financial year for consulting work, with a cost of $25,755 (2011:
$4,265) were charged to the profit or loss;
- options issued during 2012, and not yet vested at the commencement of the financial
year for employee remuneration, with a cost of $ Nil (2011: $75,619) were charged to the
profit or loss; and
- options issued in satisfaction of capital raising costs, with a value of $Nil (2011: $750,000)
were charged directly to equity.
21. Commitments and contingent assets and liabilities
Leasing commitments
The Group has entered into operating leases on office space for terms of up to 5 years. Future
minimum rentals payable under this operating lease are as follows:
2012 2011
$ $
Within one year 56,002 16,800
After one but not more than five years 224,008 67,200
280,010 84,000
Annual license fees on exploration licenses held by the Company are $43,394 with a minimum
exploration commitment of $96,424 per annum.
The Group does not have any material contingent assets or liabilities other than as disclosed in
this report.
22. Subsequent events
On 11 January 2013, the Company announced that it plans to commence RC drilling at the
Mofe Creek project during January 2013 after it was granted the Mofe Creek mineral
exploration license by the Ministry of Lands Mines and energy late last year.
On 29 January 2013, the Company announced that it has commenced RC drilling at the Mofe
Creek project during January 2013 after it was granted the Mofe Creek mineral exploration
license by the Ministry of Lands Mines and energy late last year. Approximately 1,600m of RC
drilling of a planned 2,500m programme has been completed on the Koehnko target. Drilling
has intersected significant widths of friable iron formation from surface to an average down-dole
depth of 36.5m and maximum of 51m.
On 29 January 2013, the Company announced the appointment of Mr David Frances as
Executive Chairman. Concurrent to the appointment of Mr Frances to the Board is the
resignation of Non-Executive Chairman, Mr Warwick Grigor.
On 26 February 2013, the Company announced that 50,000,000 options expiring 23 February
2013 had been exercised at a price of $0.01 per option raising $500,000 for the Company.
On 18 March 2013, the Company announced the results of its maiden 2,500m reverse
circulation drill programme which was completed at the Company's 100% owned Mofe Creek
project in Liberia, West Africa.
23. Supplementary information about the parent entity
Parent
2012 2011
$ $
Assets
Current assets 1,569,956 3,724,429
Total assets 3,280,384 9,028,043
Liabilities
Current liabilities 55,760 77,549
Total liabilities 55,760 77,549
Net assets 3,097,190 8,918,805
Equity
Issued capital 45,631,150 45,032,860
Reserves 2,369,859 3,282,988
Total equity 3,097,190 8,918,805
Profit and loss
Profit / (loss) (6,090,764) (7,468,570)
Comprehensive income
Total comprehensive income (6,090,764) (7,468,570)
There were no contingent liabilities, guarantees or capital commitments of the parent entity not
otherwise disclosed in these financial statements.
DIRECTORS' DECLARATION
In accordance with a resolution of the directors of Tawana Resources NL, I state that:
1. In the opinion of the directors:
(a) the financial statements and notes as set out on pages 30 to 53 of the Company and of
the consolidated entity are in accordance with the Corporations Act 2001, including:
(i) giving a true and fair view of the Company's and the consolidated entity's financial
position as at 31 December 2012 and of their performance for the year ended on
that date; and
(ii) complying with Accounting Standards and Corporations Regulations 2001; and
(b) there are reasonable grounds to believe that the Company will be able to pay its debts as
and when they become due and payable.
2. The attached financial statements and notes thereto comply with International Financial
Reporting Standards as issued by the International Accounting Standards Board as described
in Note 1 to the financial statements.
3. This declaration has been made after receiving the declarations required to be made to the
directors in accordance with section 295A of the Corporations Act 2001 for the financial year
ended 31 December 2012.
On behalf of the Board
Mr Lennard Kolff
Managing Director
Sydney, 27 March 2013
SCHEDULE OF MINING TENEMENTS
Mining & Exploration tenements currently held by the consolidated entity are as follows:
Location Title held by % held by Title
Tawana group
Kareevlei Wes Diamond Resources Pty Ltd 100% NC 30/5/1/2/2/081 MR
South Africa
Flinders Island Orogenic Exploration Pty Ltd / Tawana 80% EL 4183 & 4290
SA, Australia Resources NL
Flinders Island Orogenic Exploration Pty Ltd / Tawana 80% ELA 06/648
SA, Australia Resources NL
Orapa Seolo Botswana (Pty) Ltd 100% PL 61/2007
Botswana
Sinoe Global Mineral Investments LLC Subject to option MEL 11009
agreement to
purchase 100%
Mofe Creek Tawana Liberia Inc 100% MEL 12029
ASX ADDITIONAL INFORMATION
AS AT 15 MARCH 2013
Additional information included in accordance with the Listing Rules of the Australian Securities
Exchange Limited. The information is current as at 15 March 2012.
1. Substantial shareholders
On 30 July 2012 the Company received an initial substantial shareholder form from Gryphon
Minerals Limited stating that Gryphon Minerals Limited had a relevant interest in 114,250,000
ordinary shares representing 13.03% of the voting shareholding of the Company.
On 15 September 2011 the Company received an initial substantial shareholder form from
Chalmsbury Nominees Pty Ltd stating that Chalmsbury Nominees Pty Ltd had a relevant
interest in 67,844,432 ordinary shares representing 7.9% of the voting shareholding of the
Company.
On 7 January 2011 the Company received an initial substantial shareholder form from Merriwee
Pty Ltd stating that Merriwee Pty Ltd had a relevant interest in 50,000,000 ordinary shares
representing 8.3% of the voting shareholding of the Company.
2. Statement of issued capital
(a) Distribution of fully paid ordinary shareholders
Size of holding Number of Shares held
holders
1 1,000 180 108,615
1,001 5,000 376 1,158,714
5,001 10,000 267 2,132,569
10,001 100,000 682 27,179,778
100,001 and over 459 862,216,027
1,964 892,795,703
(b) All ordinary shares (whether fully paid or not) carry one vote per share without restriction.
(c) At the date of this report there were 1,197 shareholders who held less than a marketable parcel
of shares.
3. Options
Exercise Expiry date Number of Number of
price options holders
Unlisted options $0.10 17 Jan 2014 6,750,000 6
Unlisted options $0.01 30 Jul 2013 50,000,000 1
Unlisted options $0.05 9 Sep 2014 5,000,000 1
Unlisted options $0.01 8 Mar 2014 25,000,000 1
Unlisted options $0.03 10 Nov 2013 1,250,000 1
Unlisted options $0.05 10 Nov 2015 1,250,000 1
Unlisted options $0.036 30 April 2015 27,000,000 6
Unlisted options $0.036 30 April 2015 1,500,000 1
4. Quotation
Listed securities in Tawana Resources NL are quoted on the Australian Securities Exchange
and the Johannesburg Stock Exchange.
5. Twenty largest shareholders
The twenty largest shareholders hold 55.46% of the issued capital of the Company as at
15 March 2013.
No Shareholder Number of Percentage
shares of
issued
capital
1 Gryphon Minerals Limited 100,000,000 11.20%
2 Merriwee Pty Ltd <Merriwee Super Fund A/C> 55,400,000 6.21%
3 Black Peak Holdings Pty Ltd 44,900,000 5.03%
4 BT Portfolio Services Limited <Warrell Holdings S/F
A/C> 38,000,000 4.26%
5 Spring Plains Past Co (Vic) PL <Spring Plains A/C> 37,625,398 4.21%
6 HSBC Custody Nominees (Australia) Limited 30,739,782 3.44%
7 Mr Julian Babarczy 25,173,288 2.82%
8 Gregorach Pty Ltd <Grigor Superfund A/C> 19,850,000 2.22%
9 Trayburn Pty Ltd 18,912,926 2.12%
10 Gryphon Minerals Limited 14,250,000 1.60%
11 ABN AMRO Clearing Sydney Nominees Pty Ltd 14,242,746 1.60%
12 McTavish Industries Pty Ltd <McTavish Super Fund
A/C> 13,100,000 1.47%
13 I E Properties Pty Ltd 13,000,000 1.46%
14 Symorgh Investments Pty Ltd 12,800,000 1.43%
15 Bainpro Nominees Pty Ltd 11,171,000 1.25%
16 Quality Life Pty Ltd <The Viking Fund A/c> 10,500,000 1.18%
17 Cambus Equities Pty Ltd 9,720,000 1.09%
18 Seventy Three Pty Ltd <King S/F No 3 A/c> 8,950,000 1.00%
19 Mr Neville James Miles 8,501,101 0.95%
20 Lufgan Nominess Pty Ltd 8,222,572 0.92%
495,058,813 55.46%
Date: 28/03/2013 10:20:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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