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TAW - Tawana - Interim Financial Report For The Half-Year Ended 30 June 2007

Release Date: 12/09/2007 09:49:37      Code(s): TAW
TAW - Tawana - Interim Financial Report For The Half-Year Ended 30 June 2007    
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: TAW & ISIN: AU000000TAW7           
("Tawana" or "the company")                                                     
ABN 69 085 166 721                                                              
Interim Financial Report for the half-year ended 30 June 2007                   
CONTENTS                                                                        
                                                   Page                         
Corporate directory                                 2                           
Directors` report                                   3                           
Auditor`s independence declaration                  9                           
Interim financial report                                                        
Consolidated income statement                     10                           
 Consolidated balance sheet                        11                           
 Consolidated statement of recognised income and   12                           
 expenses                                                                       
Consolidated cash flow statement                  13                           
 Notes to the consolidated financial statements    14                           
Directors` declaration                              19                          
Independent auditor`s review report to the members  20                          
This interim financial report does not include all the notes of the type        
normally included in an annual financial report.  Accordingly, this report      
is to be read in conjunction with the annual report for the year ended 31       
December 2006 and any public announcements made by Tawana Resources Limited     
during the interim reporting period in accordance with the continuous           
disclosure requirements of the Corporations Act 2001.                           
CORPORATE DIRECTORY                                                             
DIRECTORS                                                                       
Brian Phillips (Non-Executive Chairman)                                         
Wolfgang Marx (Managing Director)                                               
Euan Luff (Non-Executive Director)                                              
COMPANY SECRETARY                                                               
Edward Derrick Ehmke                                                            
REGISTERED OFFICE                                                               
60 Wilson Street                                                                
South Yarra                                                                     
Melbourne Vic 3141                                                              
Telephone:  (03) 9863 5222                                                      
Facsimile:   (03) 9863 5288                                                     
Email:  wolf.marx@tawana.com.au                                                 
Website www.tawana.com.au                                                       
AUDITORS                                                                        
PricewaterhouseCoopers                                                          
G.P.O.Box 1331L                                                                 
Melbourne, Victoria, 3001                                                       
SHARE REGISTRY                                                                  
Computershare Investor Services Pty Ltd                                         
Yarra Falls                                                                     
452 Johnston Street                                                             
Abbotsford, Victoria, 3067                                                      
STOCK EXCHANGE LISTING                                                          
Home Exchange is the Australian Stock Exchange                                  
Secondary Listing is on the Johannesburg Stock Exchange                         
ASX/JSE Code: Shares TAW                                                        
ASX/JSE Code: Options TAWO                                                      
Directors` report                                                               
The Directors of Tawana Resources N.L submit herewith the interim financial     
report for the half-year ended 30 June 2007.  In order to comply with the       
provisions of the Corporations Act 2001, the Directors report as follows:       
Directors                                                                       
Details of the Directors of the company in office at any time during or         
since the end of the half year and at the date of this report are:              
Wolfgang Marx                                                                   
Brian Phillips                                                                  
Euan Luff                                                                       
Review of operations                                                            
The company continued with its active exploration program, concentrating on     
diamond exploration and evaluation. A summary of the major activities are as    
follows:                                                                        
Projects in South Africa                                                        
KAREEVLEI WES PROJECT, KIMBERLEY REGION, SOUTH AFRICA                           
(Operated by Tawana; 74% owned by Tawana and 26% owned by Seven Falls)          
In April 2007 the Company was granted a new order Mining Right over the         
Project by the Department of Minerals and Energy.                               
Tawana has re-located its 25tph dense media separation plant (DMS) to           
Kareevlei Wes and construction of the plant and infrastructure was nearing      
completion in August 2007. The Company is planing to excavate 10,000 tonnes     
of material from each of the KV1 and KV2 kimberlites and process this           
material in the DMS on site. The aim of this trial mining program is to         
define a JORC compliant resource for the two kimberlites.                       
RIVERTON KIMBERLITE PROJECT, KIMBERLEY REGION, SOUTH AFRICA                     
(Operated by Tawana; Tawana earning 70%,Taormina Mining (Pty) Ltd diluting      
to 30%)                                                                         
The Company entered into a joint venture with Taormina Mining (Pty) Limited     
("Taormina"), an unlisted South African company, to prospect and evaluate a     
kimberlite situated 25 km north of Kimberley, South Africa.                     
During July 2007 the Company re-located its 10tph DMS plant to Riverton for     
the 2000 tonne bulk sampling program. Excavation of material from the           
kimberlite commenced in August 2007 and on 3 September the Company announced    
that larger than expected diamonds had been recovered during the first week     
of processing of the initial bulk sample collected.                             
The announcement stated that 18 diamonds weighing 9.07 carats had been          
recovered, which included a 3.12ct pale yellow diamond, a 1.31ct diamond and    
a 1.08ct diamond. The average size of the diamonds was 0.50 carats, an          
unusually large average size for diamonds from a kimberlite.                    
The diamonds were recovered from 232 tonnes of kimberlite which had been        
partially processed. 70 tonnes of this sample was classified as oversize and    
still needed to be crushed and re-processed.                                    
The diamonds were recovered from the minus 16 mm plus 1.0 mm fractions of       
kimberlite sampled. The kimberlite material was processed in the Company`s      
DMS plant with diamond recovery by Flowsort x-ray plant and grease table.       
LEXSHELL PROJECT, SOUTH AFRICA                                                  
(Tawana 44% and operator /Guma Resources 44%/ Lexshell 12% revenue share)       
The project is held under a Mining Right by Lexshell 366 Mining (Pty)           
Limited ("the Holder"). Tawana/Guma have jointly entered into a Contractor`s    
Agreement with the Holder which will enable Tawana to assess the economic       
potential of the deposit and if warranted mine the diamonds on behalf of the    
joint venture partners. Costs will be shared on a 50:50 basis with Guma. The    
Holder will retain a 12% share of revenue after State royalties and cost of     
sales.                                                                          
The section of the Vaal/Harts River alluvials in which this project is          
located is noted for the prolific production of large, high quality             
diamonds. Mining has taken place here for about 100 years and the area still    
hosts one of the largest alluvial diamond mines in the world.  Tawana will      
commence work on the assessment of the deposit during the second half of        
2007.                                                                           
DANIEL KIMBERLITE PROJECT, LIME ACRES DISTRICT, SOUTH AFRICA                    
(Operated by Tawana; 22.2% owned by Tawana, 51.8% owned by BHP Billiton and     
26% owned by Seven Falls)                                                       
The Daniel Kimberlite Project ("DKP") is a joint venture between Tawana, BHP    
Billiton and Seven Falls, and encompasses an area 30kms in radius centered      
on the De Beers owned Finsch Diamond Mine.  Utilisation of Falcon technology    
has led to the identification of kimberlitic targets situated in the Lime       
Acres District of South Africa.                                                 
Percussion drilling of some of these targets was conducted during 2004 and      
2005, which resulted in the discovery of three new kimberlites (A1, A2, and     
A95).                                                                           
Following the discovery of kimberlites Al, A2 and A95, the Falcon data was      
reviewed, resulting in a reassessment of all of the previously identified       
targets and the selection of several of these for drill testing. During 2006    
the accessible targets were drilled. No new kimberlites were identified but     
samples of drill chips collected from holes which failed to reach target        
depth or were considered worthy of further investigation were submitted for     
analysis. Kimberlitic indicator minerals were recovered from a number of        
these targets and these will be followed up during 2007.                        
In early 2007 Prospecting Right Applications were submitted over additional     
targets. Drilling of the additional targets will be conducted when the          
Prospecting Rights are granted. Tawana and BHP Billiton will fund this          
drilling program pro rata to their respective interests in the project.         
CARTER BLOCK PROJECT, LIME ACRES DISTRICT, SOUTH AFRICA                         
(Operated by Tawana; Tawana earning 40%, Kimberley Consolidated Mines Pty       
Ltd diluting to 60%)                                                            
Tawana Resources is in joint venture with Kimberley Consolidated Mines          
("KCM") to prospect and evaluate kimberlites situated in the Carter Block,      
close to the De Beers operating Finsch Mine, in South Africa.                   
Tawana is able to earn 40% equity in each individual Falcon and aero-           
magnetic target by identifying kimberlite through drilling and conducting a     
bulk sampling program. Expenditure on further evaluation work will be           
contributed by KCM and Tawana on a pro-rata basis. Tawana will manage the       
project.                                                                        
The joint venture`s initial focus was the 14 BHP Billiton-generated Falcon      
targets, and four aero-magnetic survey targets. These were drill tested         
during July 2007 and samples of drill cuttings have been sent to the            
Company`s Melbourne laboratory for analyses. Results are expected in Q3         
2007.                                                                           
TAWANA ALLUVIALS, LIME ACRES DISTRICT, SOUTH AFRICA                             
(Tawana 70% and operator/Seven Falls 30 %)                                      
Negotiations with third parties to participate in the continuation of the       
economic assessment of the Eastern Gravels and Feeder Channel alluvial          
diamond deposits have not reached a concluded position. While several           
proposals have been considered, none has provided a satisfactory commercial     
basis for an agreement.  As every drill hole and test pit within both areas     
resulted in diamonds being identified, the Company will continue to seek        
parties who are interested in testing the economics of large-scale mining.      
Projects in Botswana                                                            
ORAPA DIAMOND PROJECT, BOTSWANA                                                 
(100% owned by Tawana)                                                          
In April 2007 the Company was granted a new prospecting licence over an area    
of approximately 57 square kilometers, covering 8 kimberlites in the Orapa      
kimberlite field in Botswana. Applications for this Prospecting Licence were    
submitted by a number of companies on a competitive basis. The Prospecting      
Licence is held in the name of Seolo Pty Ltd, a 100% owned Botswana             
registered subsidiary of Tawana.                                                
The Company plans to undertake a program of evaluation of the kimberlites       
which will entail detailed geophysics, trenching and drilling to establish      
the size of the kimberlites, followed by bulk sampling to determine the         
grade and diamond quality of the kimberlites. Initial indications are that      
the diamondiferous BK24 is in excess of 3 hectares in surface area and at       
least one other kimberlite has a surface area of 2 hectares. No previous        
bulk sampling has been conducted on 7 of the eight kimberlites.  An initial     
review of available airborne geophysical data has indicated the possible        
presence of at least one new kimberlite in the Prospecting Licence area.        
Detailed ground-based geophysical surveys have been conducted over BK 19,       
BK20 and BK21. These surveys appear to confirm the airborne data. Drill         
testing of the kimberlites will be conducted during the second half of 2007.    
BOROLONG DIAMOND PROJECT, BOTSWANA                                              
(100% owned by Tawana)                                                          
Exploration licences in the prospective north eastern part of Botswana,         
between the city of Francistown and the Orapa kimberlite province, were         
granted to Tawana during early 2004.  The licences cover areas which are        
known to be geologically favourable for kimberlite intrusions, and which        
were known to include sites where kimberlitic indicator minerals had been       
recovered by earlier explorers.                                                 
Kimberlitic indicator minerals were recovered from soil samples collected       
over identified targets during 2004, 2005 and 2006. Such targets were           
identified from existing magnetic and previous sampling data.  Additional       
follow up sampling is planned to take place during 2007.                        
Projects in Australia                                                           
PILBARA REGIONAL EXPLORATION, WESTERN AUSTRALIA                                 
(Tawana 66.6% and operator /De Beers Australia Exploration 33.3%)               
Helicopter-supported regional reconnaissance and follow-up sampling within      
the 17 granted De Beers tenements was conducted during 2006.  This program      
included reconnaissance stream sampling and the follow-up of anomalies          
generated from aeromagnetic surveys and heavy mineral anomalies from            
previous De Beers sampling.  The 266 samples collected during the program       
were processed and examined in the Melbourne Laboratory. Results indicate       
that two new kimberlites are located in the Blacktop East area some 5km         
north east of the Blacktop 01 kimberlite.                                       
The kimberlitic indicator minerals recovered from the Blacktop East area        
display chemical signatures indicative of diamondiferous kimberlites.           
The Company is reviewing alternatives to progress this project.                 
FLINDERS ISLAND/VENUS BAY PROJECTS, SOUTH AUSTRALIA                             
(Tawana 80%, Orogenic Exploration 20%, Flinders Diamonds earning 70%)           
In April 2007 ASX listed Flinders Diamonds Limited (FDL), Tawana and            
Orogenic Exploration Pty Ltd (OEPL) executed an agreement which allows FDL      
to earn, over two four-year periods, a 70% interest in ELs 2927, Venus Bay,     
and 3200, Flinders Island.  The equity can be earned in two stages, 50% for     
an expenditure of $1 million with Tawana and OEPL diluting to 30% and 20%       
respectively. Thereafter FDL has the option to earn a further 20% by            
spending a further $1 million on the project, with Tawana and OEPL diluting     
to 15% each.  FDL may withdraw after spending $250,000. OEPL is free carried    
until a decision to mine and FDL can remain as manager during its sole          
contributor period.                                                             
TIMBER CREEK PROJECT, NORTHERN TERRITORY                                        
(Tawana 100%)                                                                   
No further work has been conducted on this project. The Company has applied     
for a Retention Licence over the TC-01 kimberlite, which will enable Tawana     
to retain title over this diamond deposit until diamond prices improve          
sufficiently to improve the economic viability of the kimberlite.               
WHIRLWIND PLAINS PROJECT, NORTHERN TERRITORY                                    
(Tawana 100%)                                                                   
No further work has been conducted on this project and the Exploration          
Licence over the area has been relinquished.                                    
Half-year result                                                                
The operating loss of the consolidated entity for the half year after income    
tax of $nil was $3,469,991 (comparative half year, income tax of $nil and       
operating loss $3,562,160).                                                     
The directors do not recommend the payment of a dividend nor has one been       
recommended or paid since the end of the previous financial year.               
Significant transactions                                                        
There were no significant transactions during the half-year.                    
Auditor`s independence declaration                                              
In accordance with the requirements of section 307C of the Corporations Act     
2001, the Auditors have provided a signed Auditor Independence Statement for    
30 June 2007.  This is detailed on page 12 of this report.                      
This report is made in accordance with a resolution of the Board of             
Directors.                                                                      
Wolf Marx                                                                       
Director                                                                        
Signed at Melbourne on this 12th day of September 2007.                         
Auditor`s Independence Declaration                                              
As lead auditor for the review of Tawana Resources N.L for the half year        
ended 30 June 2007, I declare that to the best of my knowledge and belief,      
there have been:                                                                
-    no contraventions of the auditor independence requirements of the          
Corporations Act 2001 in relation to the review; and                            
-    no contraventions of any applicable code of professional conduct in        
relation to the review.                                                         
This declaration is in respect of Tawana Resources N.L and the entities it      
controlled during the period.                                                   
Tim Goldsmith                                 Melbourne                         
Partner                               12 September 2007                         
PricewaterhouseCoopers                                                          
Consolidated income statement for the half-year ended 30 June 2007              
Notes  Half-year      Half-year                  
                                      2007           2006                       
                                      $              $                          
Revenue from continuing         4      94,455         25,273                    
operations                                                                      
Other income                    4      -              247,118                   
Corporate costs                        (132,018)      (141,574)                 
Depreciation                           (164,177)      (514,340)                 
Employee benefits expense              (323,671)      (233,468)                 
Exploration expenses written           (2,584,195)    (2,279,442)               
off                                                                             
Foreign exchange loss                  -              (48,083)                  
Impairment of assets                   (14,844)       (8,110)                   
Finance costs                          (17,891)       -                         
Travel costs                           (56,070)       (68,241)                  
Other expenses                  5      (271,580)      (541,293)                 
Loss before income tax expense         (3,469,991)    (3,562,160)               
Income tax expense                     -              -                         
Loss from continuing                   (3,469,991)    (3,562,160)               
operations after income tax                                                     
expense attributable to                                                         
members of the parent                                                           
                                                                                
                                                                                
Earnings per share for loss            Cents          Cents                     
attributable to the ordinary                                                    
equity holders of the company:                                                  
                                                                                
Basic earnings per share               (0.040)        (0.051)                   
Diluted earnings per share             (0.040)        (0.051)                   
The above consolidated income statement should be read in conjunction with      
the accompanying notes.                                                         
Consolidated balance sheet as at 30 June 2007                                   
                                June             December                       
                                2007             2006                           
                                $                $                              
ASSETS                                                                          
Current assets                                                                  
Cash and cash equivalents        1,241,351        2,655,399                     
Trade and other receivables      104,426          561,231                       
Inventories                      87,455           94,181                        
                                1,433,232        3,310,811                      
Non-current assets                                                              
Receivables                      76,333           51,291                        
Property, plant and equipments   1,075,067        1,357,547                     
Exploration expenditure          9,964,238        12,037,202                    
                                11,115,638       13,460,040                     
                                                                                
Total assets                     12,548,870       16,770,851                    
                                                                                
LIABILITIES                                                                     
Current liabilities                                                             
Trade and other payables         118,196          480,664                       
Provisions                       88,068           71,760                        
                                206,264          552,424                        
Non-current liabilities                                                         
Provisions                       47,629           51,291                        
                                47,629           51,291                         
                                                                                
Total liabilities                253,893          603,715                       

Net assets                       12,294,977       16,167,136                    
                                                                                
EQUITY                                                                          
Contributed equity               32,544,335       32,544,335                    
Reserves                         (1,886,809)      (1,484,642)                   
Accumulated losses               (18,362,549)     (14,892,557)                  
Total equity                     12,294,977       16,167,136                    
The above consolidated balance sheet should be read in conjunction with the     
accompanying notes.                                                             
Consolidated statement of recognised income and expenses for the half-year      
ended 30 June 2007                                                              
Notes  Half-year        Half-year                    
                                  2007             2006                         
                                  $                $                            
                                                                                
Exchange rate differences          (423,365)        351,827                     
on translation of foreign                                                       
operations                                                                      
Net income recognised              (423,365)        351,827                     
directly in equity                                                              
Loss for the half year             (3,469,991)      (3,562,160)                 
Total recognised income and        (3,893,356)      (3,210,333)                 
expense for the half year                                                       
attributable to members of                                                      
the parent                                                                      
                                                                                
The above consolidated statement of recognised income and expenses should be    
read in conjunction with the accompanying notes.                                
Consolidated cash flow statement for the half-year ended 30 June 2007           
                            Notes   Half-year    Half-year                      
                                    2007         2006                           
$            $                              
Cash flows from operating                                                       
activities                                                                      
Receipts from customers              29,564       110,083                       
(incl. GST)                                                                     
Interest received                    64,891       25,573                        
Payments to suppliers and            (608,871)    (889,762)                     
employees (incl. GST)                                                           
Net cash (outflow) from              (514,416)    (754,106)                     
operating activities                                                            
                                                                                
Cash flows from investing                                                       
activities                                                                      
Payments for exploration             (511,231)    (839,790)                     
activity                                                                        
Proceeds from sale of                34,964       1,893,572                     
property plant and equipment                                                    
Purchase of property, plant                       -                             
& equipment                                                                     
Net cash inflow from                 (476,267)    1,053,782                     
investing activities                                                            
Cash flows from financing                                                       
activities                                                                      
Proceeds from the issue of           -            6,800,314                     
shares                                                                          
Net cash inflow from                 -            6,800,314                     
financing activities                                                            
Net increase/(decrease) in           (990,683)    7,099,990                     
cash & cash equivalents                                                         
Cash and cash equivalents at         2,655,399    1,340,481                     
the beginning of the half-                                                      
year                                                                            
Effects of exchange rate             (423,365)    (1,758,980)                   
changes on cash and cash                                                        
equivalents                                                                     
Cash and cash equivalents at         1,241,351    6,681,491                     
the end of the half-year                                                        
The above consolidated cash flow statement should be read in conjunction        
with the accompanying notes.                                                    
Notes to the financial statements 30 June 2007                                  
1.  Basis of preparation of the half-year report                                
This general purpose financial report for the interim half-year reporting       
period ended 31 December 2007 has been prepared in accordance with              
Accounting Standard AASB 134: Interim Financial Reporting and the               
Corporations Act 2001.                                                          
This interim financial report does not include all the notes normally           
included in an annual financial report.  Accordingly, this report is to be      
read in conjunction with the annual report for the year ended 31 December       
2006 and any public announcements made by Tawana Resources N.L. during the      
interim reporting period in accordance with the continuous disclosure           
requirements of the Corporations Act 2001.                                      
The accounting policies adopted are consistent with those of the previous       
financial year and corresponding interim reporting period.                      
2. Going concern                                                                
The consolidated entity has incurred a loss of $3,469,991 for the half-year     
ended 30 June 2007, has a net surplus of working capital of $1,226,968 and a    
net asset balance of $12,294,977.  The interim financial report has been        
prepared on the basis of going concern which contemplates continuity of         
normal business activities and the realisation of assets and settlement of      
liabilities in the ordinary course of business.  The Directors believe this     
basis to be appropriate.                                                        
The ability of the company to continue as a going concern is dependent of       
obtaining additional funding to finance ongoing activities, including future    
production, mine development and exploration activities.  The budget for        
2007 indicates that there are sufficient funds for all planned expenditure      
in the year.  Management`s plan include seeking a joint venture partner to      
fund certain exploration projects and/or raising additional funds through       
equity placements.  If the company is unable to implement its plans, it         
could be forced to cease operations.  The accompanying interim financial        
report does not include any adjustments that might be necessary if the          
company is unable to continue as a going concern.                               
3.   Segment information                                                        
The economic entity operated predominantly in the mineral exploration           
industry in South Africa, Botswana and within Australia.                        
Primary Reporting - Geographic Segments                                         
                   Australia                     Africa                         
Half-Year                   Half-year                        
                  2007   2006                 2007     2006                     
                     $      $                    $        $                     
Operating Revenue                                                               
External                                                                        
sales            31,272  18,022               63,183    7,251                   
Intersegment                                                                    
sales                 -       -               113,212  138,641                  
Other revenue         -  212,577                    -   34,541                  
Total Segment                                                                   
revenue          31,272  230,599              176,395   180,433                 
Operating Revenue contd                                                         
Eliminations           Consolidated Entity                  
                     Half-year                      Half-Year                   
                     2007         2006         2007       2006                  
                        $            $            $          $                  
External sales           -            -       94,455     25,273                 
Intersegment sales  (113,212)   (138,641)          -          -                 
Other revenue              -           -           -    247 118                 
Total Segment revenue(113,212)   (138,641)    94,455    272,391                 
Australia                       Africa                     
                            Half-year               Half-Year                   
                           $           $          $          $                  
                        2007        2006       2007       2006                  
Segment Expenses                                                                
Segment expenses  (3,215,727)  (3,033,915)  (348,719) (800,636)                 
Intersegment                                                                    
expenses            (113,212)    (138,641)         -          -                 
Unallocated                                                                     
expenses                   -            -          -          -                 
Total Segment                                                                   
expense           (3,328,939)  (3,172,556)  (348,719) (800,636)                 
Loss before                                                                     
income tax        (3,297,667)  (2,941,957)  (172,324) (620,203)                 
Segment Expenses cont.                                                          
                      Eliminations         Consolidated Entity                  
Half-year                    Half-year                  
                     2007       2006         2007         2006                  
                        $          $            $            $                  
Segment expenses         -          -   (3,564,446) (3,834,551)                 
Intersegment                                                                    
Expenses           113,212    138,641             -           -                 
Unallocated                                                                     
expenses                 -          -             -           -                 
Total Segment                                                                   
expense            113,212    138,641    (3,564,446)(3,834,551)                 
Loss before                                                                     
income tax                -         -   (3,469,991) (3,562,160)                 
4.   Revenue and other income                                                   
                                        Half-year  Half-year                    
                                        2007       2006                         
                                        $          $                            
Revenue from continuing operations                                           
      Interest income                   64,891     25,273                       
      Laboratory income                 29,564     -                            
                                        94,455     25,273                       
Other income                                                                 
      Profit on sale of assets          -          137,035                      
      Other                             -          110,083                      
                                        -          247,118                      
5.   Expenses                                                                   
                                        Half-year  Half-year                    
                                        2007       2006                         
                                        $          $                            
Other expenses from continuing                                               
   operations                                                                   
      Administrative costs              124,243    413,554                      
      Auditors remuneration             49,724     28,456                       
Laboratory expenses               17,361     57,266                       
      Listing fees                      -          1,750                        
      Occupancy costs                   76,236     40,267                       
      Other expenses                    4,016      -                            
271,580    541,293                      
6.   Dividends                                                                  
The directors do not recommend the payment of a dividend nor has one been       
recommended or paid since the end of the previous financial year.               
7.   Equity securities issued                                                   
Listed options converted                    Half-year   Half-year               
                                           2007        2006                     
                                           Options     Options                  
Balance at start of the half-year           22,344,144  21,869,144              
Converted to ordinary shares                -           -                       
Granted during the half-year                -           -                       
Balance at end of half-year                 22,344,144  21,869,144              
Unlisted options granted                    Half-year   Half-year               
                                           2007        2006                     
                                           Options     Options                  
Balance at start of half- year              1,390,000   -                       
Granted during the half-year                1,000,000   -                       
Balance at end of half-year                 2,390,000   -                       
8.   Contingent liabilities                                                     
(a)  An Indemnity Guarantee of $7,500 is held by the Department of Business,    
Industry & Resource Development for Tawana Resources N.L for the Timber     
    Creek Project mining tenement held in the Northern Territory.               
(b)  Lease Commitments                                                          
    In order to maintain current rights of tenure to exploration tenements,     
the parent company is required to outlay lease rentals and to meet the      
    minimum expenditure requirements of the Mines Departments.  These           
    obligations are subject to renegotiation upon expiry of the exploration     
    leases or when application for a mining licence is made and are not         
provided for in the accounts.                                               
    There is also a five year lease on the premises occupied by the parent      
    entity at 60 Wilson Street, South Yarra, signed on 25 April 2006.           
                                2007     2006                                   
$        $                                      
No later than one year           735,963  984,000                               
Later than one year but not      634,693  1,580,66                              
later than five years                     7                                     
Later than five years            -        -                                     
9.   Events occurring after the balance sheet date                              
    On 11 September Tawana completed a placement of five million shares at      
    15cents per share with attached options to institutional investors to       
raise $750,000. The Options are exercisable at 15cents on or before 11      
    September 2009.                                                             
    The Directors are not aware of any other matters or circumstances that      
    have arisen subsequent to balance date that has significantly affected      
or may significantly affect the operations of the economic entity, the      
    results of those operations or the state of affairs of the economic         
    entity subsequent to the half-year ended 30 June 2007.                      
In the directors` opinion:                                                      
the financial statements and notes set out on pages 13 to 20 are in             
accordance with the Corporations Act 2001, including:                           
-    complying with Accounting Standards, the Corporations Regulations 2001     
and other mandatory professional reporting requirements; and                    
-    giving a true and fair view of the consolidated entity`s financial         
position as at 30 June 2007 and of its performance for the half-year ended      
on that date; and                                                               
-    there are reasonable grounds to believe that Tawana Resources N.L. will    
be able to pay its debts as and when they become due and payable                
This declaration is made in accordance with a resolution of the directors.      
On behalf of the directors                                                      
Wolf Marx                                                                       
Director                                                                        
Signed at Melbourne on this 12th day of September 2007.                         
Independent auditor`s review report to the members of                           
Tawana Resources N.L                                                            
Report on the half-year financial report                                        
We have reviewed the accompanying half-year financial report of Tawana          
Resources N.L., which comprises the balance sheet as at 30 June 2007, and       
the income statement, statement of recognised income and expense and cash       
flow statement for the half-year ended on that date, other selected             
explanatory notes and the directors` declaration for the Tawana Resources       
N.L. Group (the consolidated entity).  The consolidated entity comprises        
Tawana Resources N.L. (the company) and the entities it controlled during       
the half-year.                                                                  
Directors` responsibility for the half-year financial report                    
The directors of the company are responsible for the preparation and fair       
presentation of the half-year financial report in accordance with Australian    
Accounting Standards (including the Australian Accounting Interpretations)      
and the Corporations Act 2001.  This responsibility includes designing,         
implementing and maintaining internal control relevant to the preparation       
and fair presentation of the half-year financial report that is free from       
material misstatement, whether due to fraud or error; selecting and applying    
appropriate accounting policies; and making accounting estimates that are       
reasonable in the circumstances.                                                
Auditor`s responsibility                                                        
Our responsibility is to express a conclusion on the half-year financial        
report based on our review in accordance with Auditing Standards on Review      
Engagements ASRE 2410 Review of an Interim 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 faire view of the           
consolidated entity`s financial position as at 30 June 2007 and it              
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 N.L.,        
ASRE 2410 requires that we comply with the ethical requirements relevant to     
the audit of the annual financial 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.  It also includes reading      
the other information included with the financial report to determine           
whether it contains any material inconsistencies with the financial report.     
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.                                                       
For further explanation of a review, visit our website                          
http://www.pwc.com/au/financialstatementaudit.                                  
While we considered the effectiveness of management`s internal controls over    
financial reporting when determine the nature and extent of our procedures,     
our review was not designed to provide assurance on internal controls.          
Our review did not involve an analysis of the prudence of business decisions    
made by directors or management.                                                
Independence                                                                    
In conducting our review, we have complied with the independence requirement    
of the Corporations Act 2001.                                                   
Conclusion                                                                      
Based on our review, which is not an audit, we have not become aware of any     
matters that makes us believe that the half-year financial report of Tawana     
Resources N.L. is not in accordance with the Corporations Act 2001              
including:                                                                      
-    giving a true and fair view of the consolidated entity`s financial         
position at 30 June 2007 and of its performance for the half-year ended on      
that date, and;                                                                 
-    Complying with Accounting Standard AASB 134 Interim Financial Reporting    
and Corporations Regulations 2001.                                              
PricewaterhouseCoopers                                                          
Tim Goldsmith            Melbourne                                              
Partner                  12 September 2007                                      
Sponsor                                                                         
PricewaterhouseCoopers Corporate Finance (Pty) Ltd                              
Date: 12/09/2007 09:49:35 Supplied by www.sharenet.co.za                     
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