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Financial Report for the half-year ended 30 June 2013
Tawana Resources NL
(Incorporated in Australia)
(Registration number ACN 085 166 721)
Share code on the JSE Limited: TAW
ISIN: AU000000TAW7
Share code on the Australian Stock Exchange Limited: TAW
ISIN: AU000000TAW7
(“Tawana” or “the Company”)
FINANCIAL REPORT FOR THE HALF-YEAR ENDED 30 JUNE 2013
This information should be read in conjunction with the 31 December 2012 Annual Report
Contents
Corporate Directory 3
Directors’ Report 4
Auditor’s Independence Declaration 6
Statement of Comprehensive Income 7
Statement of Financial Position 8
Statement of Changes in Equity 9
Statement of Cash Flows 10
Notes to the Financial Statements 11
Directors’ Declaration 14
Independent Auditor’s Review Report to the Members 15
Corporate Directory
Directors
Solicitors to the Company
Mr Wayne Richards Executive Chairman
Mr Lennard Kolff Managing Director Steinepreis Paganin
Mr Matthew Bowles Non-Executive Director Level 4, The Read Buildings
16 Milligan Street
Joint Company Secretaries Perth WA 6000
Mr Winton Willesee Price Sierakowski
Mr Aaron Finlay Level 24, St Martin’s Tower
44 St George’s Terrace
Principal Place of Business Perth WA 6000
and Registered Office
Share Registry
Suite 25
145 Stirling Highway Computershare Investor Services Pty Ltd
Nedlands WA 6009 GPO Box 2975
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
Level 20
181 William Street
Melbourne VIC 3000
Stock Exchange
Australian Securities Exchange
ASX Code: TAW
JSE Limited
JSE Code: TAW
Directors’ Report
Your Directors present their report on the Company and its controlled entities (“consolidated entity”)
for the half-year ended 30 June 2013.
Directors
The names of the Directors in office at any time during or since the end of the half-year are as follows.
All Directors have been in office for this entire period unless otherwise stated.
Mr Warwick Grigor – Non-Executive Chairman (resigned 29 January 2013)
Mr David Frances – Executive Chairman (appointed 29 January 2013, resigned 6 May 2013)
Mr Wayne Richards – Executive Chairman (appointed 15 August 2013)
Mr Len Kolff – Managing Director
Mr Julian Babarczy – Non-Executive Director (resigned 15 August 2013)
Mr Matthew Bowles – Non-Executive Director
Operating results
The loss of the consolidated entity for the half-year ended 30 June 2013 after providing for income tax
amounted to $1,132,567 (30 June 2012: $1,062,797).
No dividends were declared or paid during the half-year ended 30 June 2013.
Review of operations
Background
Tawana was incorporated as a public company on 16 November 1998 in Australia. Operating
through its various subsidiaries, the Company is involved in the exploration for iron ore in West Africa.
The Company’s objective is to establish viable ore reserves and turn such projects into profitable
operations.
The company also continues to expand its interests in evaluating other mineral resources.
Tawana listed on ASX (as a primary listing) in April 2001 and JSE (as a secondary listing) in
November 2005. The Company’s head office is located in Perth, Australia.
Corporate Activities
On 11 January 2013, the Company announced that it planned to commence RC drilling at the Mofe
Creek Iron Ore Project during January 2013 after it was granted the Mofe Creek mineral exploration
license by the Liberian Ministry of Lands Mines and Energy in December 2012.
On 29 January 2013, the Company announced that it has commenced RC drilling at the Mofe Creek
project during January 2013. Approximately 1,600m of RC drilling of a planned 2,500m programme
had been completed on the Koehnko target. Drilling had intersected significant widths of friable iron
formation from surface to an average down-dole depth of 36.5m and maximum of 51m. On 12 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.
On 18 March, the Company announced a global exploration target size potential of >500Mt of which
90-230Mt was friable itabirite and 270-440Mt was friable mixed itabirite/amphibolite
Results for the maiden metallurgical test-work programme were announced on 25 June 2013,
confirming the potential to produce a +60% Fe product with low impurities at 44-57% weight recovery
from friable, weathered itabirite.
During the period Mr David Frances resigned as Executive Chairman of the Company.
Events occurring after the reporting period
On 2 July 2013, the Company announced the results of the preliminary desktop assessment
demonstrating the potential for the Mofe Creek Iron Ore Project.
On 15 July 2013, the Company announced the discovery of additional high-grade outcropping coarse
grained itabirite mineralization and DSO float at the new Zaway Prospect.
On 22 July 2013, the Company announced that Canaccord Genuity had initiated research coverage in
relation to the Company.
On 13 August 2013, the Company announced that 50,000,000 options over ordinary fully paid shares
had been exercised at an exercise price of $0.01, raising $500,000.
On 15 August 2013, the Company announced the appointment of Mr Wayne Richards as the
Company’s Executive Chairman. Mr Richards has a career spanning almost 30 years in the design,
development and commissioning/expansion of several major iron ore and nickel projects (greenfield
and brownfield). Mr Richards has an extensive mining background at a senior executive and
management level, with in-depth experience in mineral processing and project management.
Concurrently, on 15 August 2013, the Company announced the resignation of Mr Julian Babarczy as
a Non-Executive Director of the Company.
On 26 August 2013, the Company announced the disposal of its interests in the Kareevlei Diamond
Project in South Africa and the Flinders Island Diamond Project as part of the its ongoing strategy to
reduce overheads, divest non-core assets and fast track the development of the Moke Creek iron Ore
Project in Liberia.
On 5 September 2013, the Company announced, the receipt of its Environmental Permit from EPA for
the exploration phase of its 100% owned Mofe Creek Iron Ore Project in Liberia.
Auditor’s independence declaration
The lead auditor’s independence declaration for the half-year ended 30 June 2013 has been received
and is attached to this Directors’ Report.
Signed in accordance with a resolution of the Board of Directors.
Mr Len Kolff
Managing Director
Dated this 11th day of September 2013
Auditor’s Independence Declaration
[Declaration removed for SENS purposes. Please find the declaration on the Tawana
website.]
Consolidated Statement of Comprehensive Income
For the half-year ended 30 June 2013
30 June 2013 30 June 2012
$ $
Continuing operations
Revenue 11,159 62,665
Corporate costs (458,451) (354,465)
Depreciation (4,356) (2,322)
Employee benefits expense (273,134) (213,260)
Exploration expenses written off 3 (295,981) -
Share based payments expense - (496,660)
Other expenses (49,001) (82,951)
Loss before income tax expense (1,069,764) (1,086,993)
Income tax expense - -
Net loss for the period from continuing
operations (1,069,764) (1,086,993)
Profit/(Loss) from discontinued operations after
tax (62,803) 24,196
Net loss for the period attributable to
Tawana Resources NL (1,132,567) (1,062,797)
Other comprehensive income/(loss)
Items that may be reclassified to profit or loss
Gain/(loss) on translation of foreign operations 224,670 (34,536)
Total comprehensive loss for the period
attributable to Tawana Resources NL (907,897) (1,097,333)
Basic and diluted earnings per share from
continuing and discontinued operations (cents) (0.126) (0.124)
Basic and diluted earnings per share from
continuing operations (cents) (0.119) (0.126)
Basic and diluted earnings per share from
discontinued operations (cents) (0.007) 0.002
Weighted average number of shares used to
calculate basic and diluted earnings per share 898,135,892 856,629,043
The above Consolidated Statement of Comprehensive Income should be read in conjunction with the
accompanying notes.
Consolidated Statement of Financial Position As at 30 June 2013
Note 30 June 31 December
2013 2012
$ $
Current assets
Cash and cash equivalents 702,582 1,678,614
Trade and other receivables 79,695 85,513
Total current assets 782,277 1,764,127
Non-current assets
Trade and other receivables 49,782 51,047
Property, plant and equipment 53,531 52,024
Exploration expenditure 2,092,052 1,413,186
Total non-current assets 2,195,365 1,516,257
Total assets 2,977,642 3,280,384
Current liabilities
Trade and other payables 189,702 121,374
Provisions 59,383 22,556
Total current liabilities 249,085 143,930
Non-current liabilities
Provisions 39,264 39,264
Total non-current liabilities 39,264 39,265
Total liabilities 288,349 183,194
Net assets 2,689,293 3,097,190
Equity
Contributed equity 5(a) 46,131,150 45,631,150
Reserves 2,311,377 2,369,859
Accumulated losses (45,753,234) (44,903819)
Total equity 2,689,293 3,097,190
The above Consolidated Statement of Financial Position should be read in conjunction with the
accompanying notes.
Consolidated Statement of Changes in Equity For the half-year ended 30 June 2013
Issued Reserves Accumulated Total
capital losses
$ $ $ $
Balance at 1 January 2013 45,631,150 2,369,859 (44,903,819) 3,097,190
Loss for the period - - (1,132,567) (1,132,567)
Other comprehensive income for the
period - 224,670 - 224,670
Total comprehensive income/(loss) for
the period - 224,670 (1,132,567) (907,897)
Transactions with owners in their
capacity as owners
Options exercised or lapsed 500,000 (283,152) 283,152 500,000
Balance at 30 June 2013 46,131,150 2,311,377 (45,753,234) 2,689,293
Balance at 1 January 2012 45,431,150 2,884,143 (39,396,488) 8,918,805
Loss for the period - - (1,062,797) (1,062,797)
Other comprehensive loss for the
period - (34,536) - (34,536)
Total comprehensive loss for the
period - (34,536) (1,062,797) (1,097,333)
Transactions with owners in their
capacity as owners
Options issued - 496,660 - 496,660
Balance at 30 June 2012 45,431,150 3,346,267 (40,459,285) 8,318,132
The above Consolidated Statement of Changes in Equity should be read in conjunction with the
accompanying notes.
Consolidated Statement of Cash Flows For the half-year ended 30 June 2013
Note 30 June 2013 30 June 2012
$ $
Cash flows from operating activities
Receipts from customers - 14,276
Payments to suppliers and employees (724,171) (747,966)
Interest received 11,159 62,665
Net cash flows used in operating activities (713,012) (671,025)
Cash flows from investing activities
Payments for plant and equipment (892) (149,756)
Proceeds from sale of plant and equipment 1,287 258,532
Payments for exploration (770,346) (468,640)
Net cash flows used in investing activities (769,951) (359,864)
Cash flows from financing activities
Proceeds from issue of shares 500,000 -
Net cash from financing activities 500,000 -
Net increase in cash and cash equivalents (982,963) (1,030,889)
Cash and cash equivalents at beginning of
period 1,678,614 3,722,991
Effects of exchange rates on cash holdings in
foreign currencies 6,931 19,020
Cash and cash equivalents at end of period 702,582 2,711,122
The above Consolidated Statement of Cash Flows should be read in conjunction with the
accompanying notes.
Notes to the Financial Statements For the half-year ended 30 June 2013
1. Basis of preparation
The half-year consolidated financial statements are general purpose financial statements
prepared in accordance with the requirements of the Corporations Act 2001, Australian
Accounting Standard AASB 134: Interim Financial Reporting, Australian Accounting
Interpretations and other authoritative pronouncements of the Australian Accounting Standards
Board (“AASB”).
It is recommended that these financial statements be read in conjunction with the annual
financial report for the year ended 31 December 2012 and any public announcements made by
Tawana Resources NL and its controlled entities during the half-year in accordance with
continuous disclosure requirements arising under the Corporations Act 2001.
The half-year financial statements do not include full disclosures of the type normally included in
annual financial statements.
The same accounting policies and methods of computation have been followed in these interim
financial statements as were applied in the most recent annual financial statements. The Group
adopted a number of new accounting standards with effect from 1 January 2013, however they
had no effect on the financial position or performance of the Group. The Group has not early
adopted any of the standards issued but not yet effective and does not expect the adoption of
these standards will have an impact in the period of initial application.
Reporting Basis and Conventions
The half-year financial statements have been prepared on an accruals basis and are based on
historical costs modified by the revaluation of selected non-current assets, financial assets and
financial liabilities for which the fair value basis of accounting has been applied.
2. Going Concern
These financial statements have been prepared on a going concern basis.
For the half-year ended 30 June 2013 the net loss was $1,132,567 (to 30 June 2012:
$1,062,797). Cash outflows from operations were $713,012 (to 30 June 2012 outflows of
$671,025). As at 30 June 2013 the Group had a net working capital position of $533,192 (as at
31 December 2012: net working capital of $1,620,197). Subsequent to 30 June 2013 the
Company has announced that 50,000,000 options over ordinary fully paid shares had been
exercised at an exercise price of $0.01, raising an additional $500,000.
The Directors believe that the Group is a going concern on the basis that it will continue its track
record of successfully issuing share capital to new and existing shareholders, whilst prudently
managing its cash outflows and contractual commitments relating to its exploration program. As
at the date of this report the Group had no material non-cancellable contracts, including its
planned expenditure under its Liberian tenements, which are cancellable at the discretion of the
Group. In the event that the aforesaid future capital raising initiatives are unsuccessful, the
Group has the ability to scale back its cash outflows from operating activities, including its
exploration program.
These financial statements do not include any adjustments to the recoverability or classification
of recorded asset amounts, or to the amounts or classification of liabilities, which might be
necessary should the Group not be able to continue as a going concern.
3. Exploration expenses written off
During the period the Company terminated the Option Agreement to acquire the Sinoe Gold
Project outright due to a lack of significant results being reported. The Company wrote off the
previously capitalised exploration expenditure in relation to this project of $295,981 during the
period.
4. Dividends
No dividend has been declared or paid during the half-year or the previous corresponding
period.
The Company does not have any franking credits available for current or future years as it is not
in a tax paying position.
5. Contributed equity
(a) Movements in share capital
30 June 31 December
2013 2012
$ $
Ordinary shares, fully paid 46,131,150 45,631,150
Movement in ordinary shares on issue
Number $
Balance at 1 January 2013 876,629,043 45,631,150
Shares issued 50,000,000 500,000
Share issue costs - -
Balance at 30 June 2013 926,629,043 46,131,150
(b) Share options
Exer- Expiry date Balance at Issued Exercised Expired or Balance at
cise beginning during the during the forfeited end of
price of period period period during the period
period
Number Number Number Number Number
Unlisted options $0.10 17 Jan 14 6,750,000 - - - 6,750,000
Unlisted options $0.10 17 Jan 13 6,000,000 - - (6,000,000) 6,000,000
Unlisted options $0.07 17 Jan 13 6,750,000 - - (6,750,000) 6,750,000
Unlisted options $0.01 23 Feb 13 50,000,000 - (50,000,000) - 50,000,000
Unlisted options $0.01 30 Jul 13 50,000,000 - - - 50,000,000
Unlisted options $0.05 9 Sep 14 5,000,000 - - - 5,000,000
Unlisted options $0.01 8 Mar 14 25,000,000 - - - 25,000,000
Unlisted options $0.03 10 Nov 13 1,250,000 - - - 1,250,000
Unlisted options $0.05 10 Nov 15 1,250,000 - - - 1,250,000
Unlisted options $0.036 30 April 15 28,500,000 - - - 28,500,000
180,500,000 - (50,000,000) (12,750,000) 117,750,000
6. Segment information
The Company operates wholly in one business segment, being mineral exploration and in one
geographical segment, being Africa. As a consequence, the Company has not identified and
therefore, not disclosed, any segment information on the basis of the internal reports being
provided to the chief decision maker, which is the board as a whole.
7. Contingent assets and liabilities and commitments
The consolidated entity does not have any material contingent assets or liabilities or
commitments other than as disclosed in this report.
8. Subsequent events
On 2 July 2013, the Company announced the results of the preliminary desktop assessment
demonstrating the potential for the Mofe Creek Iron Ore Project.
On 15 July 2013, the Company announced the discovery of additional high-grade outcropping coarse
grained itabirite mineralization and DSO float at the new Zaway Prospect.
On 22 July 2013, the Company announced that Canaccord Genuity had initiated research coverage in
relation to the Company.
On 13 August 2013, the Company announced that 50,000,000 options over ordinary fully paid shares
had been exercised at an exercise price of $0.01, raising $500,000.
On 15 August 2013, the Company announced the appointment of Mr Wayne Richards as the
Company’s Executive Chairman. Mr Richards has a career spanning almost 30 years in the design,
development and commissioning/expansion of several major iron ore and nickel projects (greenfield
and brownfield). Mr Richards has an extensive mining background at a senior executive and
management level, with in-depth experience in mineral processing and project management.
Concurrently, on 15 August 2013, the Company announced the resignation of Mr Julian Babarczy as
a Non-Executive Director of the Company.
On 26 August 2013, the Company announced the disposal of its interests in the Kareevlei Diamond
Project in South Africa and the Flinders Island Diamond Project as part of the its ongoing strategy to
reduce overheads, divest non-core assets and fast track the development of the Moke Creek iron Ore
Project in Liberia.
On 5 September 2013, the Company announced, the receipt of its Environmental Permit from EPA for
the exploration phase of its 100% owned Mofe Creek Iron Ore Project in Liberia.
Directors’ Declaration
In accordance with a resolution of the Board of Directors, I state that:
In the opinion of the Directors:
1. The financial statements and notes are in accordance with the Corporations Act 2001 and:
(a) Comply with Accounting Standard AASB 134 Interim Financial Reporting and the
Corporations Regulations 2001; and
(b) Give a true and fair view of the financial position of the consolidated entity as at 30 June
2013 and of its performance for the half-year ended on that date.
2. There are reasonable grounds to believe that the Company will be able to pay its debts as and
when they become due and payable.
On behalf of the Board.
Mr Len Kolff
Managing Director
Dated this, 11th September 2013
Independent Auditor’s Report
[Auditor’s Report removed for SENS purposes. Please find report on the Tawana
website.]
11 September 2013
Sponsor
PricewaterhouseCoopers Corporate Finance (Pty) Ltd
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