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TAW - Tawana - Interim financial report: half-year ended 30 June 2008

Release Date: 09/09/2008 11:04:02      Code(s): TAW
TAW - Tawana - Interim financial report: half-year ended 30 June 2008           
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 2008                   
CONTENTS                                                                        
                                                         Page                   
Corporate Directory                                          2                  
Directors` Report                                            3                  
Auditor`s Independence Declaration                          14                  
Income Statement                                            15                  
Balance Sheet                                               16                  
Statement of Recognised Income and Expenditure              17                  
Statement of Cash Flows                                     18                  
Notes to and Forming Part of the Financial Statements       19                  
Directors` Declaration                                      26                  
Independent Review Report to the Members                    27                  
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    
2007 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                                                             
Board of Directors                                                              
Neil Barry                                                                    
  Wolfgang Marx                                                                 
  Euan Luff                                                                     
  Brian Phillips                                                                
Company Secretary                                                               
  Derrick Ehmke                                                                 
Registered Office                                                               
  60 Wilson Street                                                              
SOUTH YARRA  VIC  3141                                                        
Auditor                                                                         
  PricewaterhouseCoopers                                                        
  GPO Box 1331L                                                                 
MELBOURNE VIC 3001                                                            
Share Registry                                                                  
  Computershare Investor Services Pty Ltd                                       
  Yarra Falls                                                                   
452 Johnston Street                                                           
  ABBOTSFORD VIC 3067                                                           
Stock Exchange Listing                                                          
  Home Exchange is Melbourne                                                    
ASX/JSE Code: Shares TAW                                                      
  ASX Code: Options TAWOA                                                       
  JSE Code: Options TAWA                                                        
DIRECTORS` REPORT                                                               
The Directors of Tawana Resources N.L submit herewith the financial report      
for the half-year ended 30 June 2008.  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:                    
Director                  Qualifications and Experience                         
Neil Barrie               Board Member since 19 June 2008. Mr.                  
Executive Chairman        Barrie, an Honours graduate from the                  
BA (Hons)                 University of Western Australia and a                 
                         former KPMG Director, has 20 years                     
                         experience in mining evaluation and                    
corporate development throughout                       
                         Australia, South Africa and Botswana.                  
                                                                                
                         Interest in Shares - 855,904                           
Interest in Options - 4,270,000                        
                                                                                
Wolfgang Marx             Board Member since 16 November 1998. Wolf             
Managing Director         Marx is a qualified geologist and has over            
BSc, BA, FAusIMM, CPGeo   30 years experience in geology                        
                         particularly in exploration for gold and               
                         diamonds.                                              
                                                                                
Interest in Shares - 7,062,500                         
                         Interest in Options - 814,500                          
                                                                                
Brian Phillips            Board Member since 4 April 2005. Brian                
Non-Executive Director    Phillips is a qualified mining engineer               
AWASM, FAusIMM, MIMMM     and has over 40 years experience in the               
                         mining industry being a Fellow of the                  
                         AusIMM, a member of the IMMM, a past                   
Director of The Australian Gold Council                
                         and past President of the Victorian                    
                         Minerals and Energy Council.  He is a non-             
                         executive director of Panoramic Resources              
Limited and Indophil Resources N.L.  He is             
                         a member of the Audit and Risk Management              
                         Committee and the Remuneration and                     
                         Nomination Committee.                                  

                         Interest in Shares - 507,300                           
                         Interest in Options - 312,500                          
                                                                                
Euan Luff                 Board Member since 16 November, 1998. Euan            
Non-Executive Director    Luff is Senior Partner of Wilmoth Field               
B Juris LL.B.AL.Arb.A.    and Warne, Solicitors. In his professional            
                         capacity he acts as a legal adviser to a               
number of private and public Companies.                
                         He is a member of the Audit and Risk                   
                         Management Committee and the Remuneration              
                         and Nomination Committee.                              

                         Interest in Shares - 7,244,870                         
                         Interest in Options - 1,604,150                        
                                                                                
COMPANY SECRETARY         Company Secretary since 22 January 2007.              
Derrick Ehmke             Derrick has over 40 year`s business                   
                         experience in Finance, Administration, IT              
                         Supply Chain Management and Marketing. He              
has been involved predominantly in                     
                         Retailing and Manufacturing public                     
                         companies in South Africa, United Kingdom              
                         and Australia. He is a Fellow of the                   
Institute of Corporate Managers,                       
                         Secretaries and Administrators. He                     
                         currently runs his own consultancy                     
                         company.                                               

                         Interest in Shares - Nil                               
                         Interest in Options - Nil                              
REVIEW OF OPERATIONS                                                            
The Company continued its 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)          
The Kareevlei Wes Project comprises a cluster of 5 diamondiferous kimberlite    
pipes (KV1-KV5). Previous drilling and bulk sampling by Tawana has shown that   
KV1 and KV2 are potentially economic.                                           
The Company`s 25 tph processing plant has been constructed on site and the      
Dense Media Separation (DMS) section has been commissioned.  Work has commenced 
on upgrading the crushing circuit. This work is continuing.                     
Contracts for the trial mining earthmoving will be let when sufficient funds    
are available to complete this program. Tawana is in discussions with a number  
of parties to progress this project.                                            
St. AUGUSTINES KIMBERLITE PROJECT, KIMBERLEY                                    
(Operated by Tawana; Tawana 30% equity in Vecto Trade 436 (Pty) Ltd)            
In late 2007 Tawana acquired a 30% of the issued shares in Vecto Trade 436      
(Pty) Ltd ("Vecto") which was granted a New Order Prospecting Right over the    
St Augustines kimberlite located 600 metres west of the world famous Kimberley  
Mine or "Big Hole" in Kimberley, South Africa. The St Augustines mine is        
located in the northern half of the Prospecting Right due west of the Big Hole. 
The Kimberley Mine produced 14.5 million carats of diamonds from 22.5 million   
tons at a grade of 64 carats per hundred tons. Mining ceased in 1914. The St    
Augustines kimberlite was mined in the late 1890`s and records show that the    
diamond quality was considered identical and the grade similar to that of the   
nearby Kimberley Mine. Geological records indicate that the two kimberlite      
pipes of the Kimberley Mine and St Augustines are located on the same structure 
and are connected by a kimberlite fissure.                                      
Mining at St Augustines ceased in 1902. Subsequently the tailings of the        
Kimberley Mine were deposited over the St Augustines kimberlite. The removal    
of these tailings has recently exposed in-situ kimberlite at St Augustines.     
Records show that St Augustines was only partially mined to a depth of          
approximately 240 metres as compared to the Kimberley Mine which was mined      
to a depth of 1097 metres.                                                      
A non-invasive gravimetric survey conducted by Tawana in November 2007          
The gravimetric survey was undertaken to confirm the exact position of the      
known kimberlite and to determine whether other kimberlites occurred in         
the Prospecting Right. In addition to confirming the location of the St         
Augustine`s mine, two new targets close to St Augustines have also been         
identified. The two new targets are in the southern half of the Prospecting     
Right and display similar gravity responses to that of the known St Augustines  
kimberlite.                                                                     
In January 2008, the Company was advised that De Beers Consolidated Mines       
Limited (the surface owners of the land constituting the southern half of the   
St Augustines Mine Prospecting Right) has applied for a Judicial Review and     
setting aside of the Minister of Minerals and Energy`s administrative act in    
granting the Prospecting Right, or alternatively, that portion of the           
Prospecting Right in so far as it affects the southern half of the Prospecting  
Right.                                                                          
Tawana`s legal advisors in South Africa have advised that it is too early       
to express an opinion as to the merits of the application or its prospects      
of success since the Department of Minerals and Energy, which is opposing       
the application on behalf of the Minister, has as yet not replied to the        
allegations in the founding papers.                                             
Pending determination thereof, however, South African legal advisers have       
advised that the Prospecting Right remains registered and valid.  They have     
further pointed out that the original pit of the St Augustine`s mine is not     
located in the southern half of the Prospecting Right.                          
LEXSHELL ALLUVIAL PROJECT, KIMBERLEY REGION, SOUTH AFRICA                       
(Tawana 88% revenue share/ Lexshell 12% revenue share)                          
During Q2 2008 Tawana drilled 23 holes in the central portions of the           
Lexshell granted New Order Mining Right located some 60km northwest of          
Kimberley. This drilling identified a well defined palaeochannel.               
The area occupied by the palaeochannel within the Mining Right is interpreted   
as covering 20 to 26 hectares, and is immediately adjacent to existing third    
party alluvial diamond mining operations.                                       
The Company is in discussions with a third party on participating in future     
bulk sampling of the palaeochannel.                                             
RAKANA /AQUILA JOINT VENTURE                                                    
(74% owned and operated Aquila Resources Limited; 26% Rakana Consolidated       
Mines Pty Ltd; 6.8% indirect Tawana)                                            
In April carbon steel resources producer and developer, Aquila Resources        
Limited (ASX:AQA Aquila) announced promising manganese assay results from its   
Avontuur Projects located 75km north west of Kuruman, in the Northern Cape      
Province of South Africa.                                                       
Tawana holds an indirect interest of 6.8% (previously incorrectly stated as     
5.2%) in the Joint Venture through its 26% holding in Rakana.                   
In early July Aquila announced further promising manganese assay results from   
its Avontuur Projects.                                                          
The manganese discoveries were identified on two mineralised prospects some     
20km apart and adjoining the northern-most farms of the main Kalahari Manganese 
Field.                                                                          
DANIEL KIMBERLITE PROJECT, LIME ACRES DISTRICT, SOUTH AFRICA                    
(Operated by Tawana; 74% owned by Tawana, 26% owned by Seven Falls)             
The Daniel Kimberlite Project ("DKP") was originally a joint venture between    
Tawana, BHP Billiton and Seven Falls, which encompasses an area 30kms in        
radius centred on the De Beers owned Finsch Diamond Mine.  Utilisation of       
FalconRegistered technology has led to the identification of kimberlitic targets
situated in the Lime Acres District of South Africa.                            
During the first half of 2008 BHP Billiton withdrew from the joint venture      
and waived its rights to any royalty from future revenue.                       
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.                                                 
DANIEL ALLUVIAL PROJECT, LIME ACRES DISTRICT, SOUTH AFRICA                      
(Operated by Tawana; 60% owned by Tawana, 40% owned by Seven Falls)             
The Daniel Alluvial Project ("DAP") was originally a joint venture between      
Tawana, BHP Billiton and Seven Falls, which encompasses the "Main Channel" of   
an extensive alluvial system downstream of the De Beers owned Finsch Diamond    
Mine.  Utilisation of FalconRegistered technology led to the identification of  
the alluvial system situated in the Lime Acres District of South Africa.        
Drilling and bulk sampling by Tawana proved the deposit to be diamondiferous.   
During the first half of 2008 BHP Billiton withdrew from the joint venture      
and waived its rights to any royalty from future revenue.                       
Tawana and Seven Falls are in discussions to restructure this joint venture     
to facilitate further evaluation of the alluvial deposit.                       
TAWANA ALLUVIAL PROJECT, LIME ACRES DISTRICT, SOUTH AFRICA                      
(Operated by Tawana; 70% owned by Tawana, 30% owned by Seven Falls)             
The Tawana Alluvial Project ("TAP") was originally a joint venture between      
Tawana, BHP Billiton and Seven Falls, which encompasses the "Feeder Channel"    
and "Eastern Gravels" of an extensive alluvial system downstream of the De      
Beers owned Finsch Diamond Mine.  Utilisation of FalconRegistered technology led
to                                                                              
the identification of the alluvial system situated in the Lime Acres District   
of South Africa. Drilling and bulk sampling by Tawana proved the deposit to     
be diamondiferous.                                                              
During the first half of 2008 BHP Billiton withdrew from the joint venture      
and waived its rights to any royalty from future revenue.                       
Tawana and Seven Falls are in discussions to restructure this joint venture     
to facilitate further evaluation of the alluvial deposit.                       
PROJECTS IN BOTSWANA                                                            
ORAPA DIAMOND PROJECT, BOTSWANA                                                 
(100% owned by Tawana, Nowak Investments Pty Ltd earning 51%)                   
In February 2008 Tawana entered into a joint venture with Nowak Investments     
(Pty) Limited (Nowak) to continue the exploration and evaluation of Tawana`s    
Orapa Diamond Project in Botswana. The agreement is subject to Ministerial      
approval.                                                                       
Under the terms of the agreement Nowak will be required to conduct and sole     
fund evaluation work to earn a 51% interest in the project, including:          
Review all the results from the work completed by Tawana.                       
Select kimberlites for mini-bulk sampling to a depth of 30 metres below         
surface. For this purpose, the Management Committee, comprising members of      
Tawana and Nowak, will determine the selected kimberlites.                      
Excavate at least one shaft per selected kimberlite to a depth of 30 metres.    
Excavate from horizontal drives at 30m below surface no less than 100 tonnes    
of kimberlite for processing from the selected kimberlites less than 1 hectare  
in surface area, and no less than 200 tonnes of kimberlite from the selected    
kimberlites greater than 1 hectare in surface area.  A maximum of 1100 tonnes   
of kimberlite will be excavated for processing during this initial phase. If    
warranted, additional bulk samples of up to 3000 tonnes per kimberlite could    
be excavated and processed in subsequent phases.                                
Nowak has also undertaken to conduct exploration on the Borolong and Moshaiwa   
projects.                                                                       
At the completion of the above program Tawana will have the option to           
contribute 49% of ongoing expenditure, or allow Nowak to continue sole funding  
to earn 70% interest in the projects by completing a bankable feasibility study.
Thereafter both parties will contribute pro-rata to expenditures.               
Nowak completed the planned shaft sinking on kimberlite BK24 during Q2 2008     
and bulk sampling of fresh kimberlite has commenced. To the end of June 2008    
approximately 30 tonnes of kimberlite had been excavated and was transported    
to a dense media separation plant in Francistown where processing of the        
samples is expected to commence in Q3 2008.                                     
Nowak excavated three shafts into the kimberlite to access fresh kimberlite     
at approximately 30m below surface.  Samples of kimberlite from one of the      
shafts contained specimens of eclogite embedded in the kimberlite. This is      
an important specimen because it proves that BK24 sampled the eclogitic layer   
in the Earth`s mantle, which is the source of diamonds in the Orapa diamond     
field.                                                                          
Nowak has commenced excavating shafts on the kimberlite BK22/23 which is        
located 2.5km northeast of BK24. The purpose of this is to excavate bulk        
samples to test for diamond as for BK24.                                        
Background                                                                      
Nowak is a Botswana registered unlisted company. The Managing Director of       
Nowak is Roy Spencer, formerly CEO of European Diamonds plc. Technical          
consultant to Nowak is Dr. Leon Daniels, formerly a director of Tawana.         
Dr. Daniels and Mr. Spencer have a wealth of experience in diamond exploration, 
evaluation and mining. Dr Daniels was instrumental in acquiring the AK6         
kimberlite for AIM listed African Diamonds Plc and Roy Spencer discovered the   
world class Grib Diamond Deposit in Russia and recently brought the Liqhobong   
Diamond Mine in Lesotho into production.                                        
The probable development by De Beers and African Diamonds plc (AFD-L) of a      
new diamond mine in the Orapa area on the AK6 kimberlite (located 25km to the   
south of the Tawana licence), which was originally discovered and evaluated in  
the 1970`s and considered at that time to be a small, low-grade kimberlite,     
provides an indication of the potential that still remains in Botswana. It is   
also noteworthy that Firestone Diamond plc (FDI-L) has reported encouraging     
results from its work in the Orapa field on kimberlite BK11 and BK16, and       
elsewhere in Botswana.                                                          
The Orapa kimberlite field is located in north eastern Botswana, and includes   
the Orapa, Letlhakane and Damtshaa diamonds mines, which produce in excess of   
13 million carats of diamonds per year. The Orapa kimberlite field is one of    
the largest diamondiferous kimberlite fields in the world, containing 79 known  
kimberlites, of which the majority has been proven to be diamondiferous. The    
Orapa mine is one of the largest producing kimberlites in the world and is 113  
hectares in surface area.                                                       
The Orapa mine is located 20 km to the west, Letlhakane is 30km to the south,   
and Damtshaa is 6km to the south of the Tawana licence.                         
BOROLONG/MOSHAIWA DIAMOND PROJECT, BOTSWANA                                     
(100% owned by Tawana, Nowak earning 51%)                                       
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 mid 2003 and mid 2007.  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 by Tawana during 2007 confirmed the presence of indicator    
minerals in this area.                                                          
In early 2008 Tawana entered into a joint venture with Nowak to continue        
the exploration of this project with Nowak undertaking to sole fund the         
exploration to earn 51% equity in the project.                                  
During Q2 2008 Nowak collected 36 soil samples in the Moshaiwa Prospecting      
Licence with the aim to locate the source of the kimberlitic indicator          
minerals found here previously.                                                 
PROJECTS IN AUSTRALIA                                                           
PILBARA REGIONAL EXPLORATION, WESTERN AUSTRALIA                                 
(Tawana 66.6% and operator /De Beers Australia Exploration 33.3%)               
During the first half of 2008 Tawana examined geophysical data over             
kimberlite fissures indicated to be located to the north-east of the Black      
Top kimberlite. This study showed that the fissures are unlikely to be of       
economic interest.                                                              
Tawana has advised De Beers that it intends to withdraw from the project        
on completion of environmental rehabilitation to be completed in Q3 2008.       
FLINDERS ISLAND/VENUS BAY PROJECTS, SOUTH AUSTRALIA                             
(Tawana 80%, Orogenic Exploration 20%, Flinders Mines earning 70%)              
In April 2007 ASX listed Flinders Mines Limited (FMS), (formerly Flinders       
Diamonds Limited), Tawana and Orogenic Exploration Pty Ltd (OEPL) executed      
an agreement which allows FMS to earn, over two four-year periods, a 70%        
interest in ELs 3928 (formerly EL2927), 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 FMS 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.  FMS may withdraw after     
spending $250,000. OEPL is free carried until a decision to mine and FMS can    
remain as manager during its sole contributor period.                           
In Q1 2008 FMS completed a helicopter-borne magnetic survey over the Venus      
Bay project area and identified targets over indicator mineral anomalies which  
resulted from previous exploration. Drilling of these targets during Q2 2008    
failed to intersect kimberlite.                                                 
FMS has flown REPTEM (a form of high resolution electro-magnetic survey) over   
the northern part of Flinders Island. A gravity survey was also completed, with 
a regional 200 x 200m grid over the entire island and more detailed infill to   
100 x 100m over REPTEM targets. These include the "Gem Valley" and "Flinders    
Valley" in the north and five other promising EM "Conductive Sinkhole" targets  
Assessment and interpretation of the datasets is continuing.                    
TIMBER CREEK PROJECT, NORTHERN TERRITORY                                        
(Tawana 100%)                                                                   
No further work has been conducted on this project. The Company is in the       
process of relinquishing title over this project.                               
MELBOURNE LABORATORY                                                            
Activity within the Melbourne Laboratory during the half year was focused       
on the examination of the Orapa exploration samples.                            
Treatment, examination and reporting of third party exploration samples from    
South Africa and Australia were also undertaken.                                
CORPORATE                                                                       
Appointment of Executive Chairman                                               
Following the resignation of Brian Phillips as Chairman of Tawana, the          
Board appointed Mr. Neil Barrie as Executive Chairman. Despite other business   
commitments Mr. Phillips has agreed to remain as a non-executive director of    
the Company.                                                                    
Mr. Barrie`s brief is to drive development across our range of existing highly  
advanced diamond interests in South Africa and Botswana, and to seek out        
directly or through strategic alliance partners, new mineral opportunities      
with the major focus on iron ore, coal, gold and base metals in the highly      
prospective southern African countries. In Australia, the right to access data  
collected by De Beers Australia Exploration Limited is a valuable asset that    
is being pursued in our ongoing Australian diamond exploration.                 
Funding                                                                         
Tawana completed a renounceable rights issue during Q1 2008, raising $559,204   
before costs. The proceeds of the Rights Issue provided additional working      
capital to fund the Company`s projects which include trial mining at Kareevlei  
Wes and an assessment of the Tawana Alluvials and St Augustines Projects in     
South Africa.                                                                   
During Q2 2008 2,125,600 shares were issued to two prominent South African      
business people, raising $148,792 before costs. Furthermore the Company placed  
an uncommitted portion of the rights issue to raise an additional $180,000 and, 
subsequent to the end of the quarter, completed a placement to sophisticated    
investors to raise a further $320,000. All shares were placed at A$0.08 with a  
free attached option exercisable at A$0.10 on or before 1 April 2011.           
Directors are in discussions with a number of parties to raise additional       
funds to complete the trial mining of Kareevlei Wes.                            
HALF YEAR RESULT                                                                
The operating loss of the consolidated entity for the half year after income    
tax of $nil was $1,268,932 (comparative half year, income tax of $nil and       
operating loss $3,469,991).                                                     
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.               
AUDITOR INDEPENDENCE                                                            
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 2008.  This is detailed on page 14 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 8th day of September 2008.                          
AUDITOR`S INDEPENDENCE DECLARATION                                              
As lead auditor for the review of Tawana Resources N.L for the half year        
ended 30 June 2008, 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                                                                         
8 September 2008                                                                
PricewaterhouseCoopers                                                          
CONSOLIDATED INCOME STATEMENT as at 30 June 2008                                
Notes Half-year        Half-year                    
                                  2008             2007                         
                                  $                $                            
Revenue from continuing      4     29,232           94,455                      
operations                                                                      
Other income                 4     14,559           -                           
Corporate costs                    (189,627)        (132,018)                   
Depreciation                       (97,715)         (164,177)                   
Employee benefits expense          (246,536)        (323,671)                   
Exploration expenses               (531,023)        (2,584,195)                 
written off                                                                     
Impairment of assets               -                (14,844)                    
Finance costs                      -                (17,891)                    
Travel costs                       (7,526)          (56,070)                    
Other expenses               5     (240,296)        (271,580)                   
Loss before income tax             (1,268,932)      (3,469,991)                 
expense                                                                         
Income tax expense                 -                -                           
Loss from continuing               (1,268,932)      (3,469,991)                 
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           (0.012)          (0.040)                     
Diluted earnings per share         (0.012)          (0.040)                     
The above consolidated income statement should be read in conjunction with      
the accompanying notes.                                                         
CONSOLIDATED BALANCE SHEET AS AT 30 JUNE 2008                                   
                            Notes June             December                     
                                  2008             2007                         
                                  $                $                            
ASSETS                                                                          
Current assets                                                                  
Cash and cash equivalents          57,408           149,862                     
Trade and other                    80,686           88,981                      
receivables                                                                     
Inventories                        60,291           76,818                      
                                  198,385          315,661                      
Non-current assets                                                              
Receivables                        37,221           47,423                      
Investment in associate            16,640           16,640                      
Property, plant and                594,829          850,889                     
equipments                                                                      
Exploration expenditure            5,938,275        7,971,366                   
                                  6,586,965        8,886,318                    
                                                                                
Total assets                       6,785,350        9,201,979                   

LIABILITIES                                                                     
Current liabilities                                                             
Trade and other payables           186,317          142,761                     
Share money held in trust    9     80,000           -                           
Provisions                         118,093          116,389                     
                                  384,410          259,150                      
Non-current liabilities                                                         
Director`s Loan                    25,467           -                           
Provisions                         24,161           30,784                      
                                  49,628           30,784                       
                                                                                
Total liabilities                  434,038          289,934                     
                                                                                
Net assets                         6,351,312        8,912,045                   
                                                                                
EQUITY                                                                          
Contributed equity           7     33,895,238       33,339,335                  
Reserves                           (3,996,437)      (2,148,733)                 
Accumulated losses                 (23,547,489)     (22,278,557)                
Total equity                       6,351,312        8,912,045                   
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                    
                                  2008             2007                         
                                  $                $                            

Exchange rate differences          (1,862,139)      (423,365)                   
on translation of foreign                                                       
operations                                                                      
Net income recognised              (1,862,139)      (423,365)                   
directly in equity                                                              
Loss for the half year             (1,268,932)      (3,469,991)                 
Total recognised income            (3,131,071)      (3,893,356)                 
and 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 2008           
                            Notes Half-year        Half-year                    
2008             2007                         
                                  $                $                            
Cash flows from operating                                                       
activities                                                                      
Receipts from customers            42,492           29,564                      
(incl. GST)                                                                     
Interest received                  2,981            64,891                      
Payments to suppliers and          (566,036)        (608,871)                   
employees (incl. GST)                                                           
Net cash outflow from              (520,563)        (514,416)                   
operating activities                                                            
                                                                                
Cash flows from investing                                                       
activities                                                                      
Payments for exploration           (263,372)        (511,231)                   
activity                                                                        
Proceeds from sale of              31,409           34,964                      
property plant and                                                              
equipment                                                                       
Purchase of property,              -                -                           
plant & equipment                                                               
Net cash outflow from              (231,963)        (476,267)                   
investing activities                                                            
Cash flows from financing                                                       
activities                                                                      
Proceeds from Director`s           25,467           -                           
Loan                                                                            
Share money received held          80,000           -                           
in trust                                                                        
Proceeds from the issue of         555,903          -                           
shares                                                                          
Net cash inflow from               661,370          -                           
financing activities                                                            
Net decrease in cash &             (91,156)         (990,683)                   
cash equivalents                                                                
Cash and cash equivalents          149,862          2,655,399                   
at the beginning of the                                                         
half-year                                                                       
Effects of exchange rate           (1,298)          (423,365)                   
changes on cash and cash                                                        
equivalents                                                                     
Cash and cash equivalents          57,408           1,241,351                   
at 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 2008                                  
1.  Basis of preparation of the half-year report                                
This general purpose financial report for the interim half-year reporting       
period ended 30 June 2008 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       
2007 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 $1,268,932 for the half-year     
ended 30 June 2008, has a net deficit of working capital of $186,025 and a      
net asset balance of $6,351,312.  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.  Subsequent     
to the half-year end the company received a further $320,000 as part of an      
equity placement and $675,000 from Seven Falls Trading 155 (Pty) Limited.       
Refer to note 9 for further details.  Management`s plans to obtain further      
financing 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.                                                                     
At this time, the directors are of the opinion that no assets are likely to     
be realised for an amount less than the amount at which it is recorded in       
the financial report at 30 June 2008.  Accordingly, no adjustments have been    
made to the financial report relating to the recoverability and classification  
of the asset carrying amounts or the amounts and classification of liabilities  
that might be necessary should the company not 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                         
                    2008         2007         2008         2007                 
                    $            $            $            $                    
Operating Revenue                                                               
External sales       26,416       31,272       2,816        63,183              
Intersegment sales   -            -            177,158      113,212             
Other revenue        14,559       -            -            -                   
Total Segment        40,975       31,272       179,974      176,395             
revenue                                                                         
                                                                                
                                                                                
Segment Expenses                                                                
Segment expenses     (1,100,982)  (3,215,727)  (211,741)    (348,719)           
Intersegment         (177,158)    (113,212)    -            -                   
expenses                                                                        
Unallocated          -            -            -            -                   
expenses                                                                        
Total Segment        (1,278,140)  (3,328,939)  (211,741)    (348,719)           
expense                                                                         

                                                                                
Loss before income   (1,237,165)  (3,297,667)  (31,767)     (172,324)           
tax                                                                             
Eliminations              Consolidated Entity               
                    Half-year                 Half-year                         
                    2008         2007         2008         2007                 
                    $            $            $            $                    
Operating Revenue                                                               
External sales                    -            29,232       94,455              
Intersegment sales   (177,158)    (113,212)    -            -                   
Other revenue        -            -            14,559       -                   
Total Segment        (177,158)    (113,212)    43,791       94,455              
revenue                                                                         
                                                                                
                                                                                
Segment Expenses                                                                
Segment expenses     -            -            (1,312,723)  (3,564,446)         
Intersegment         177,158      113,212      -            -                   
expenses                                                                        
Unallocated          -            -            -            -                   
expenses                                                                        
Total Segment        177,158      113,212      (1,312,723)  (3,564,446)         
expense                                                                         

                                                                                
Loss before income   -            -            (1,268,932)  (3,469,991)         
tax                                                                             
4.   Revenue and other income                                                   
                                              Half-year    Half-year            
                                              2008         2007                 
                                              $            $                    
Revenue from continuing operations                                              
  Interest income                             2,981        64,891               
  Laboratory income                           26,251       29,564               
                                              29,232       94,455               
Other income                                                                    
  Profit on sale of assets                    14,559       -                    
                                              14,559       -                    
5.   Expenses                                                                   
Half-year    Half-year            
                                              2008         2007                 
                                              $            $                    
Other expenses from continuing operations                                       
Administrative costs                        89,581       124,243              
  Auditors remuneration                       24,545       49,724               
  Laboratory expenses                         5,105        17,361               
  Occupancy costs                             102,205      76,236               
Other expenses                              18,860       4,016                
                                              240,296      271,580              
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                                                   
                    Half-year    Half-year    Half-year    Half -year           
                    2008         2007         2008         2007                 
Shares       Shares       $            $                    
Issues of ordinary                                                              
shares during the                                                               
period:                                                                         
Rights issue         8,240,053    -            424,369      -                   
Share placement      2,125,600    -            131,534      -                   
                    10,365,653   -            555,903      -                    
Listed options converted                       Half-year    Half-year           
2008         2007                 
                                              Options      Options              
Balance at start of the half-year              22,344,144   22,344,144          
Expired during the half-year                   (22,344,144) -                   
Granted during the half-year                   8,240,053    -                   
Balance at end of half-year                    8,240,053    22,344,144          
Unlisted options granted                       Half-year    Half-year           
                                              2008         2007                 
Options      Options              
Balance at start of half- year                 1,640,000    1,390,000           
Granted during the half-year                   -            1,250,000           
Balance at end of half-year                    1,640,000    2,640,000           
8.   Contingent liabilities and commitments                                     
(a)  An Indemnity Guarantee of $7,500 is held by the bank for Tawana            
Resources N.L for the Timber Creek Project mining tenement held in the          
Northern Territory.                                                             
(b)  Lease Commitments                                                          
There is an operating lease on the premises occupied by the parent entity at    
60 Wilson Street, South Yarra, expiring on 25 April 2011. Commitments under     
the operating lease are as detailed below:                                      
2008         2007                 
                                              $            $                    
   No later than one year                     147,000      735,963              
   Later than one year but not later than     269,500      634,693              
five years                                                                   
   Later than five years                      -            -                    
8.   Contingent liabilities and commitments (continued)                         
(b)  Lease Commitments (continued)                                              
There is a three year sub-lease relating to the operating lease above,          
expiring on 25 April 2011. Lease payments receivable from the sub-lease         
are as detailed below:                                                          
                                              2008         2007                 
$            $                    
   No later than one year                     82,000       -                    
   Later than one year but not later than     150,333      -                    
   five years                                                                   
Later than five years                      -            -                    
9.   Events occurring after the balance sheet date                              
Subsequent to the balance date                                                  
*    5,000,000 shares were issued in July 2008 contributing an additional       
$400,000 to equity.  $80,000 of this money was received prior to the end of     
June and has been reflected on the face of the Balance Sheet under Current      
Liabilities. The balance of $320,000 was received in July 2008.                 
*    $675,000 was received as payment from Seven Falls Trading 155 (Pty)        
Limited for the acquisition of a 26% interest in the certain South African      
exploration project areas as a result of an agreement signed in April 2005.     
The Directors are not aware of any other matters or circumstances that have     
arisen subsequent to balance sheet 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 2008.                                               
DIRECTORS` DECLARATION 30 JUNE 2008                                             
In the directors` opinion:                                                      
the financial statements and notes set out on pages 11 to 19 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 2008 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 8th day of September 2008.                          
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 2008, 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 faire      
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 2008 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   
indentified 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 e 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                                                                         
8 September 2008                                                                
Sponsor                                                                         
PricewaterhouseCoopers Corporate Finance (Pty) Ltd                              
Date: 09/09/2008 11:04:00 Supplied by www.sharenet.co.za                     
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