Wrap Text
Financial Report For The Half Year Ended 30 June 2015
Tawana Resources NL
(Incorporated in Australia)
(Registration number ACN 085 166 721)
Share code on the JSE Limited: TAW
ISIN: AU000000TAW7
Share code on the Australian Stock Exchange Limited: TAW
ISIN: AU000000TAW7
(“Tawana” or “the Company”)
TAWANA RESOURCES NL
ABN 69 085 166 721
PLEASE NOTE: ALL GRAPHICS HAVE BEEN REMOVED FOR SENS PURPOSES. PLEASE
REFER TO TAWANA WEBSITE FOR THE COMPLETE ANNOUNCEMENT .
FINANCIAL REPORT
FOR THE HALF-YEAR ENDED
30 JUNE 2015
This information should be read in conjunction with the
31 December 2014 Annual Report
Contents
Corporate Directory 3
Directors’ Report 4
Auditor’s Independence Declaration 8
General Information 9
Statement of Comprehensive Income 10
Statement of Financial Position 11
Statement of Changes in Equity 12
Statement of Cash Flows 13
Notes to the Financial Statements 14
Directors’ Declaration 18
Independent Auditor’s Review Report to the Members 19
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Corporate Directory
Directors Solicitors to the Company
Mr Wayne Richards Executive Chairman and Steinepreis Paganin
Chief Executive Officer Level 4, The Read Buildings
Mr Michael Naylor Executive Director 16 Milligan Street
Mr Michael Bohm Non-Executive Director Perth WA 6000
Company Secretary Share Registry
Mr Michael Naylor Computershare Investor Services Pty Ltd
GPO Box 2975
Principal Place of Business Melbourne VIC 3001
and Registered Office
Tel: +61 3 9415 5000
288 Churchill Avenue Fax: +61 3 9473 2500
Subiaco WA 6008
Auditor
Contact Details
Ernst & Young
Website: www.tawana.com.au The Ernst & Young Building
Tel: +61 8 9489 2600 11 Mounts Bay Road
Perth WA 6000
Stock Exchange
Australian Securities Exchange
ASX Code: TAW
JSE Limited (South Africa)
JSE Code: TAW
3
Your Directors present their report on the Company and its controlled entities (“consolidated entity”)
for the half-year ended 30 June 2015.
Directors
The names of the Directors in office at any time during or since the end of the half-year are as follows:
Mr Wayne Richards – Executive Chairman and Chief Executive Officer
Mr Michael Naylor – Executive Director
Mr Michael Bohm – Non-Executive Director (appointed 1 August 2015)
Mr Len Kolff - Technical Director (resigned 1 August 2015)
All Directors have been in office for this entire period unless otherwise stated.
Operating results
The loss of the consolidated entity for the half-year ended 30 June 2015 after providing for income tax
amounted to $875,536 (to 30 June 2014: $1,223,879).
No dividends were declared or paid during the half-year ended 30 June 2015.
Review of operations
Mofe Creek Iron Ore Project
Tawana Resources NL is an iron ore focused ASX and JSE-listed Company with its principal project
in Liberia, West Africa. Tawana’s 100% owned Mofe Creek Project (“the Project”) is a new discovery
in the heart of Liberia’s historic iron ore district, located 20km from the coast and 80km from the
country’s capital city and major port, Monrovia (refer figure 1).
Tawana is committed to becoming a mid-tier iron ore producer through the development of the Mofe
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Creek Project, which covers 475km of highly prospective tenements in Grand Cape Mount County.
The Project hosts high-grade Direct Shipping Ore (DSO) and friable itabirite mineralisation which can
be easily upgraded to a superior quality iron ore product of +65% Fe, for which there is consistent
global demand.
Development and Infrastructure
- A number of significant milestones were achieved in the advancement of the Mineral
Development Agreement (MDA) including:
o The President of the Republic of Liberia, the honorable Ellen Johnson Sirleaf officially
appointing an Inter-Ministerial Concessions Committee (IMCC) to negotiate Tawana’s
MDA.
o A formal presentation of Tawana’s Mofe Creek Iron Ore Project to the IMCC in
Monrovia was successfully concluded in April 2015.
o A draft MDA was submitted to the Government of Liberia for their review and
advancement in May 2015.
- The discovery of Direct Shipping Ore (DSO) on the newly acquired tenement MEL1223/14 has
presented the Company with a potential strategic opportunity to mine and supply high-grade feed
to an early start-up, low capital intensity project at a significantly reduced operating and capital
cost, due to very simple crushing and screening requirements only (i.e. no beneficiation).
- A Memorandum of Understanding (MoU) was executed between the Company and WISCO-CAD
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(WISCO) for the use of the Freeport iron ore facility in Monrovia . WISCO is the owner-operator
of the iron ore port facility and is currently exporting iron ore. A draft Cooperation Agreement has
been forwarded to WISCO for review and negotiation. The MoU provides the platform for
negotiating a commercially viable end-to-end logistics solution for the Mofe Creek project during
its early stages of development and ramp-up.
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- The Company was granted an eight-month extension of the initial three-year exploration term for
both licences MEL12029 and MEL1223/14 by the Ministry of Lands, Mines and Energy (MLME),
in consideration of the Ebola outbreak and acknowledged Force Majeure event.
Environment and Community
Liberia was declared Ebola-free by the World Health Organisation (WHO) on 9 May 2015. The
Company remobilised Liberian and expatriate staff in March as a result of significant advances in
the containment of the disease as well as the proactive management of the Ebola Virus Disease
by the Government of Liberia, the international community, health organisations and NGO’s.
- As part of the Environmental and Social Impact Assessment, the Company commenced an
independent and targeted campaign of local community consultation and briefing meetings with
stakeholders within and around the proposed mining areas.
- Tawana was awarded its Environmental Protection Agency (EPA) permit for the Southern
Licence - MEL1223/14. This permit allows the Company to progress field exploration activities
and is a legal requirement under Liberian regulation.
? A Scoping Report and Terms of Reference report for an Environmental and Social Impact
Assessment (ESIA), for the Company’s Mofe Creek project (Project) was submitted for review to
the Environmental Protection Agency (EPA) of Liberia.
Exploration
? The Company announced the discovery of a new high-grade Direct Shipping Ore (DSO)
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hematite mineralisation, averaging 62.8% Fe and up to 66% Fe , located a short trucking
distance to the operating port of Freeport, Monrovia. Additionally the Company has discovered
greater than 2.2km strike of friable itabirite mineralisation in the Goehn prospect as part of its
ongoing low-cost exploration strategy over the Company’s recently acquired, 100% owned
MEL1223/14 Mofe Creek South licence (refer figure 2).
- New and additional iron ore mineralisation was identified from outcropping iron formations at
both the Koehnko North East and Koehnko East prospects within Tawana’s 100% owned Mofe
Creek project.*
- Field teams continued low-cost geological mapping and rock-chip sampling of high-priority
targets within the wholly owned southern MEL1223/14 tenement.
Corporate
- Appropriate fiscal management programs and policies continue to be implemented to minimise
expenditure both at a corporate and project level. The Company will continue to manage low
cost, value-accretive activities, which will include the advancement of the MDA and targeted
exploration activities.
- Expressions of interest have been received to purchase the Company’s total shareholding and
loan account in Diamond Resources (a 100% owned subsidiary of Tawana Resources NL).
Events occurring after the reporting period
Effective 1 August 2015, Mr Michael Bohm was appointed an Independent Non-Executive Director of
the Company and Mr Lenard Kolff resigned as a Director.
Auditor’s independence declaration
The lead auditor’s independence declaration for the half-year ended 30 June 2015 has been received
and is attached to this Directors’ Report.
Signed in accordance with a resolution of the Board of Directors.
Mr Wayne Richards
Executive Chairman/Chief Executive Officer
Dated this 11th day of September 2015
Sponsor: PricewaterhouseCoopers Corporate Finance (Pty) Ltd
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Competent Persons Statement
The information in this report that relates to Exploration Results and Resources is based on information
compiled by Len Kolff, who is a member of the Australian Institute of Geoscientists. Len Kolff 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 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and
Ore Reserves’. Len Kolff consents to the inclusion of the matters in this report based on his information
in the form and context in which it appears.
* The information in this paragraph that relates to Exploration Results and Resources is based on
information compiled by Shane Tomlinson, who is a member of the Australian Institute of Geoscientists.
Shane Tomlinson 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 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves’. Shane Tomlinson consents to the inclusion of the matters in this
paragraph based on his information in the form and context in which it appears.
Notes
1: Disclaimer
(i) The MOU represents a non-binding intention of the parties to negotiate a formal cooperation
agreement in good faith. The parties are yet to agree on any definitive operational,
commercial and/or legal terms (including tonnage capacity or delivery schedules) for the
cooperation agreement;
(ii) the obligation to negotiate in good faith comes to an end on the earlier of execution of a
definitive cooperation agreement or 31 December 2015; and
(iii) there is no certainty or assurance that parties will reach a final agreement on the terms of the
cooperation agreement.
Refer to ASX announcement on 18 May 2015 for further information.
2: For more information, refer ASX announcement 8 July 2015. Tawana Resources is not aware of any
new information or data that materially effects the information included in the said announcement.
The financial statements cover Tawana Resources NL as a consolidated entity consisting of Tawana
Resources NL and its subsidiaries. The financial statements are presented in Australian dollars, which
is Tawana Resources NL’s functional and presentation currency.
Tawana Resources NL is a listed public company limited by shares, incorporated and domiciled in
Australia. Its registered office and principle place of business are:
288 Churchill Avenue
SUBIACO WA 6008
Telephone: +61 8 9489 2600
website: www.tawana.com.au
A description of the nature of the consolidated entity’s operations and its principle activities are
included in the directors’ report which is not part of the financial statements.
The financial statements were authorised for issue, in accordance with a resolution of directors on 11
September 2015.
6
Consolidated Statement of Comprehensive Income
For the half-year ended 30 June 2015
30 June 2015 30 June 2014
$ $
Continuing operations
Interest income 3 18,953 32,919
Corporate costs 3 (461,138) (768,921)
Depreciation (34,166) (6,528)
Employee benefits expense 3 (315,645) (452,452)
Share-based payments (118,421) (6,948)
Exploration expenses written off - (1,514)
Foreign exchange gain/(loss) 67,081 1,908
Loss before income tax expense (843,336) (1,201,536)
Income tax expense - -
Net loss for the period from
continuing operations (843,336) (1,201,536)
Loss from discontinued operations
after tax 4 (32,200) (22,343)
Net loss for the period attributable
to Tawana Resources NL (875,536) (1,223,879)
Other comprehensive income/(loss)
Items that may be reclassified to profit
or loss
Gain/(loss) on translation of foreign
operations 208,868 (310,583)
Total comprehensive loss for the
period attributable to Tawana
Resources NL (666,668) (1,534,462)
Basic and diluted loss per share from
continuing and discontinued operations
(cents) (0.06) (0.09)
Basic and diluted loss per share from
continuing operations (cents) (0.06) (0.09)
Basic and diluted loss per share from
discontinued operations (cents) (0.002) (0.002)
The above Consolidated Statement of Comprehensive Income should be read in conjunction with the
accompanying notes.
7
Consolidated Statement of Financial Position
As at 30 June 2015
Note 30 June 31 December
2015 2014
$ $
Current assets
Cash and cash equivalents 5 1,612,576 2,802,978
Trade and other receivables 535,538 33,080
Total current assets 2,148,114 2,836,058
Non-current assets
Trade and other receivables - 47,027
Plant and equipment 75,090 104,733
Exploration expenditure 7,157,354 6,868,805
Total non-current assets 7,232,444 7,020,565
Total assets 9,380,558 9,856,623
Current liabilities
Trade and other payables 368,125 259,626
Provisions 48,891 54,090
Total current liabilities 417,016 313,716
Non-current liabilities
Provisions 13,632 44,750
Total non-current liabilities 13,632 44,750
Total liabilities 430,648 358,466
Net assets 8,949,910 9,498,157
Equity
Contributed equity 7(a) 54,419,776 54,419,776
Reserves 2,840,352 3,015,277
Accumulated losses (48,310,218) (47,936,896)
Total equity 8,949,910 9,498,157
The above Consolidated Statement of Financial Position should be read in conjunction with the
accompanying notes.
8
Consolidated Statement of Changes in Equity
For the half-year ended 30 June 2015
Issued Reserves Accumulated Total
capital losses
$ $ $ $
Balance at 1 January 2015 54,419,776 3,015,277 (47,936,896) 9,498,157
Loss for the period - - (875,536) (875,536)
Other comprehensive loss for the
period - 208,868 - 208,868
Total comprehensive loss for the
period - 208,868 (875,536) (666,668)
Transactions with owners in their
capacity as owners
Options exercised or lapsed - (502,214) 502,214 -
Options issued and vested - 118,421 - 118,421
Balance at 30 June 2015 54,419,776 2,840,352 (48,310,218) 8,949,910
Balance at 1 January 2014 49,107,032 3,049,143 (46,967,781) 5,188,394
Loss for the period - - (1,223,879) (1,223,879)
Other comprehensive income for the
period - (310,583) - (310,583)
Total comprehensive income/(loss) for
the period - (310,583) (1,223,879) (1,534,462)
Transactions with owners in their
capacity as owners
Shares issued, net of costs 5,311,744 - - 5,311,744
Options exercised or lapsed - (846,871) 846,871 -
Options issued and vested - 6,948 - 6,948
Balance at 30 June 2014 54,418,776 1,898,637 (47,344,789) 8,972,624
The above Consolidated Statement of Changes in Equity should be read in conjunction with the
accompanying notes.
9
Consolidated Statement of Cash Flows For the half-year ended 30 June 2015
Note 30 June 2015 30 June 2014
$ $
Cash flows from operating activities
Payments to suppliers and employees (823,579) (1,095,961)
Interest received 18,953 32,919
Net cash flows used in operating activities (804,626) (1,063,042)
Cash flows from investing activities
Payments for plant and equipment - (2,525)
Payments for exploration (423,557) (2,079,236)
Cash disposed as a part of discontinued operations 4 (32,650) (27,038)
Net cash flows used in investing activities (456,207) (2,108,799)
Cash flows from financing activities
Proceeds from issue of shares - 5,608,034
Capital raising costs - (296,290)
Net cash flows from financing activities - 5,311,744
Net (decrease)/increase in cash and cash
equivalents (1,260,833) 2,139,903
Cash and cash equivalents at beginning of period 2,802,978 2,045,163
Effects of exchange rates on cash holdings in
foreign currencies 70,431 (9,450)
Cash and cash equivalents at end of period 5 1,612,576 4,175,616
The above Consolidated Statement of Cash Flows should be read in conjunction with the
accompanying notes.
10
Notes to the Financial Statements
For the half-year ended 30 June 2015
1. Basis of preparation
These half-year consolidated financial statements are general purpose condensed financial
statements prepared in accordance with the requirements of the Corporations Act 2001 and
Australian Accounting Standard AASB 134: Interim Financial Reporting.
It is recommended that these financial statements be read in conjunction with the annual
financial report for the year ended 31 December 2014 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 accounting policies applied by the Group in the consolidated interim financial statements
are the same as those applied by the Group in its consolidated financial report for the year
ended 31 December 2014.
All new and amended Accounting Standards and Interpretations effective from 1 January 2015
(listed below) have been adopted:
- AASB 2014-1 Part A Annual Improvements 2010-2012 Cycle
- AASB 2014-1 Part A Annual Improvements 2011-2013 Cycle
The adoption of these new standards and interpretations had no effect on the financial position
of performance of the Group.
Reporting Basis and Conventions
The half-year financial statements have been prepared on an accruals basis and are based on
historical costs.
Going Concern Basis
The Group recorded a loss of $875,536 (2014: loss $1,223,879) and had cash outflows from
operating and investing activities of $1,260,833 (2014: $2,139,903) for the half year ended 30
June 2015. The Group had cash and cash equivalents at 30 June 2015 and 3 September 2015
of $1,612,576 and $1,632,774 respectively.
The Group’s cash flow forecast reflects that the Group needs to raise funds during the first half
of 2016 to enable it to meet its working capital requirements and its committed and planned
exploration expenditure in connection with its exploration projects. The Directors are currently
reviewing a range of financing options which may include the further issue of new equity. The
Directors are satisfied they will be able to raise additional capital as required and thus it is
appropriate to prepare the financial statements on a going concern basis.
In the event that the Group is unable to raise additional funds to meet the Group’s planned
exploration expenditure and working capital requirements, there is a significant uncertainty as to
whether the Group will be able to meet its debts as and when they fall due and thus continue as
a going concern.
The financial statements do not include any adjustments relating to the recoverability and
classification of recorded asset amounts, nor to the amounts or classification of liabilities that
might be necessary should the Group not be able to continue as a going concern
2. Dividends
No dividend has been declared or paid during the half-year or the previous corresponding
period.
11
Notes to the Financial Statements
For the half-year ended 30 June 2015
3. Revenue and Expenses
30 June 30 June
2015 2014
$ $
Revenue
Interest Received 18,953 32,919
18,953 32,919
Expenses
Corporate expenses include:
Auditors’ remuneration 49,194 24,000
Compliance and regulatory fees 48,395 213,817
Consultancy and legal fees 141,818 91,998
Travel expenses 50,236 101,299
Other expenses 171,495 337,807
461,138 768,921
Employee benefits expenses include:
Salaries and wages 232,374 347,716
Superannuation 27,817 32,233
Directors’ fees 47,395 47,460
Other employee expenses 8,059 25,043
315,645 452,452
4. Discontinued operations
In 2010 the Board decided to discontinue its operations in Botswana and South Africa after
selling or planning to relinquish all the tenements held by the Company’s subsidiaries in those
countries. The subsidiaries that relate to discontinuing operations are Seolo Botswana (Pty)
Ltd, Tawana Resources (Pty) Ltd and Diamond Resources (Pty) Ltd.
30 June 30 June
2015 2014
$ $
Profit/loss from discontinued operations
Revenue 3,980 -
Expenses (36,180) (22,343)
Loss from discontinued operations (32,200) (22,343)
Cash outflow
Cash outflow as part of discontinued
operations (32,650) (27,038)
(32,650) (27,038)
5. Cash and cash equivalents
For the purpose of the consolidated statement of cash flows, cash and cash equivalents are
comprised of the following:
30 June 31 December
2015 2014
$ $
Cash at bank and in hand 1,090,002 1,748,000
Short term deposits 522,574 1,054,978
Total cash and cash equivalents 1,612,576 2,802,978
6. Property, Plant and Equipment
There were no additions or disposals during the period.
12
Notes to the Financial Statements
For the half-year ended 30 June 2015
7. Contributed equity
(a) Movements in share capital
30 June 31 December
2015 2014
$ $
Ordinary shares, fully paid 54,419,776 54,419,776
Movement in ordinary shares on issue
Number $
Balance at 1 January 2015 1,475,250,387 54,419,776
Shares issued - -
Share issue costs - -
Balance at 30 June 2015 1,475,250,387 54,419,776
(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 $0.036 30 Apr 15 26,500,000 - - (26,500,000) -
Unlisted options $0.05 10 Nov 15 1,250,000 - - - 1,250,000
Unlisted options $0.046 12 Dec 16 10,000,000 - - - 10,000,000
Unlisted options $0.018 12 Dec 16 10,000,000 - - - 10,000,000
Unlisted options $0.015 18 Dec 16 30,000,000 - - (3,500,000) 26,500,000
Unlisted options $0.039 20 Jan 17 1,000,000 - - - 1,000,000
Unlisted options $0.0001 30 Aug 15 - 10,000,000 - - 10,000,000
Unlisted options $0.0001 30 Aug 16 - 10,000,000 - - 10,000,000
Unlisted options $0.0001 30 Aug 17 - 10,000,000 - - 10,000,000
Unlisted options 0.0089 26 May 18 - 11,000,000 - - 11,000,000
78,750,000 41,000,000 - (30,000,000) 89,750,000
The model inputs for the options granted during the half-year were as follows:
Quantity 10,000,000 10,000,000 10,000,000 11,000,000
Grant date 23 Feb 15 23 Feb 15 23 Feb 15 12 Jun 15
Expiry date 30 Aug 15 30 Aug 16 30 Aug 17 26 May 18
Grant date share price $0.008 $0.008 $0.008 $0.005
Exercise price $0.0001 $0.0001 $0.0001 $0.0089
Expected volatility 124% 124% 124% 130%
Option life (years) 0.52 1.52 2.52 2.96
Expected dividend yield 0% 0% 0% 0%
Risk free rate at grant date 1.96% 1.87% 1.87% 2.07%
8. Segment information
Identification of reportable segments
The Group has identified its operating segments based on the internal reports that are reviewed
and used by the Board of Directors (the chief operating decision makers) in assessing
performance and in determining the allocation of resources.
The Group only has one segment being, mineral exploration in Liberia. Accordingly, all
significant operating disclosures are based upon analysis of the Group as one segment. The
financial results from this segment are equivalent to the financial statements of the Group as a
whole.
13
Notes to the Financial Statements
For the half-year ended 30 June 2015
9. Contingent assets and liabilities and commitments
There has been no significant change to contingent liabilities and commitments since 31
December 2014.
10. Related party transactions
Other than the issue of share options to key management personnel disclosed in Note 7 (b),
there have been no other significant transactions with related parties that were entered into
during the period.
11. Financial instruments
The fair value of financial assets and financial liabilities of the Group approximated their
carrying amount.
12. Loss per share
30 June 30 June
2015 2014
Loss from continuing and discontinuing operations used in
the calculation of basic EPS (875,536) (1,223,879)
Loss from continuing operations used in the calculation of
basic EPS (843,336) (1,201,536)
Loss from discontinued operations used in the calculation
of basic EPS (32,200) (22,343)
Weighted average number of ordinary shares used in the
calculation of basic and diluted loss per share 1,475,250,387 1,331,478,068
The loss per share calculation as disclosed on the Consolidated Statement of Profit and Loss
and Other 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.
Headline loss per share disclosed as required by the JSE Limited is detailed below:
30 June 30 June
2015 2014
Loss from attributable to ordinary holders of the parent
entity (875,536) (1,223,879)
Headline loss (875,536) (1,223,879)
Headline loss per share (cents) 0.06 0.09
13. Subsequent events
Effective 1 August 2015, Mr Michael Bohm was appointed an Independent Non-Executive
Director of the Company and Mr Len Kolff resigned as a Director.
14
Independent Auditor’s Report
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
2015 and of its performance for the half-year ended on that date.
2. Subject to the achievement of the matters set out in Note 1, 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 Wayne Richards
Executive Chairman/Chief Executive Officer
Dated this, 11 September 2015
To the members of Tawana Resource NL
Report on the Half-year Financial Report
We have reviewed the accompanying half-year financial report of Tawana Resources NL, which
comprises the consolidated statement of financial position as at 30 June 2015, the consolidated
statement comprehensive income, consolidated statement of changes in equity and consolidated
statement of cash flows for the half-year ended on that date, notes comprising a summary of
significant accounting policies and other explanatory information, and the directors’ declaration of the
consolidated entity comprising the company and the entities it controlled at the half-year end or from
time to time during the half-year.
Directors’ Responsibility for the Half-year Financial Report
The directors of the company are responsible for the preparation of the half-year financial report that
gives a true and fair view in accordance with Australian Accounting Standards and the Corporations
Act 2001 and for such internal controls as the directors determine are necessary to enable the
preparation of the half-year financial report that is free from material misstatement, whether due to
fraud or error.
Auditor’s Responsibility
Our responsibility is to express a conclusion on the half-year financial report based on our review. We
conducted our review in accordance with Auditing Standard on Review Engagements ASRE 2410
Review of a Financial Report Performed by the Independent Auditor of the Entity, in order to state
whether, on the basis of the procedures described, we have become aware of any matter that makes
us believe that the financial report is not in accordance with the Corporations Act 2001 including:
giving a true and fair view of the consolidated entity’s financial position as at 30 June 2015 and its
performance for the half-year ended on that date; and complying with Accounting Standard AASB 134
Interim Financial Reporting and the Corporations Regulations 2001. As the auditor of Tawana
Resources NL and the entities it controlled during the half-year, ASRE 2410 requires that we comply
with the ethical requirements relevant to the audit of the annual financial report.
15
Independent Auditor’s Report
A review of a half-year financial report consists of making enquiries, primarily of persons responsible
for financial and accounting matters, and applying analytical and other review procedures. A review is
substantially less in scope than an audit conducted in accordance with Australian Auditing Standards
and consequently does not enable us to obtain assurance that we would become aware of all
significant matters that might be identified in an audit. Accordingly, we do not express an audit
opinion.
Independence
In conducting our review, we have complied with the independence requirements of the Corporations
Act 2001. We have given to the directors of the company a written Auditor’s Independence
Declaration, a copy of which is included in the Directors’ Report.
Opinion
Based on our review, which is not an audit, we have not become aware of any matter that makes us
believe that the half-year financial report of Tawana Resources NL is not in accordance with the
Corporations Act 2001, including:
a) giving a true and fair view of the consolidated entity’s financial position as at 30 June 2015
and of its performance for the half-year ended on that date; and
a) complying with Accounting Standard AASB 134 Interim Financial Reporting and the
Corporations Regulations 2001.
Emphasis of Matter
Without qualifying our conclusion, we draw attention to Note 1 in the financial report. These conditions
indicate the existence of a material uncertainty that may cast significant doubt about the consolidated
entity’s ability to continue as a going concern and therefore, the consolidated entity may be unable to
realise its assets and discharge its liabilities in the normal course of business.
Ernst & Young
R J Curtin
Partner
Perth
11 September 2015
16
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