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TAWANA RESOURCES NL - Financial report for the half-year ended 30 JUNE 2012

Release Date: 11/09/2012 11:10:00      Code(s): TAW       PDF(s):  
Financial report for the half-year ended 30 JUNE 2012

(Incorporated in Australia)
(Registration number ACN 085 166 721)
Share code on the JSE Limited: TAW
ISIN: AU000000TAW7
Share code on the Australian Stock Exchange Limited: TAW
ISIN: AU000000TAW7
(“Tawana” or “the Company”)

FINANCIAL REPORT FOR THE HALF-YEAR ENDED 30 JUNE 2012

Contents

This information should be read in conjunction with the
31 December 2011 Annual Report

Corporate Directory                                        3

Directors’ Report                                          4

Auditor’s Independence Declaration                         6

Statement of Comprehensive Income                          7

Statement of Financial Position                            8

Statement of Changes in Equity                             9

Statement of Cash Flows                                    10

Notes to the Financial Statements                          11

Directors’ Declaration                                     14

Independent Auditor’s Review Report to the Members         15




                                                            
Corporate Directory

                                     Solicitors to the Company
Directors
                                     Steinepreis Paganin
Mr Warwick Grigor Non-Executive      Level 4, The Read Buildings
Chairman                             16 Milligan Street
Mr Lennard Kolff Managing Director   Perth WA 6000
Mr Julian Babarczy Non-Executive
Director                             Price Sierakowski
Mr Matthew Bowles Non-Executive      Level 24, St Martin’s Tower
Director                             44 St George’s Terrace
                                     Perth WA 6000
Joint Company Secretaries
                                     Share Registry
Mr Winton Willesee
Mr Aaron Finlay                      Computershare Investor Services Pty
                                     Ltd
Principal Place of Business          GPO Box 2975
and Registered Office                Melbourne VIC 3001

Suite 25                             Tel:      +61 3 9415 5000
145 Stirling Highway                 Fax:      +61 3 9473 2500
Nedlands WA 6009
                                     Auditor
Contact Details
                                     William Buck Audit (Vic) Pty Ltd
Website:   www.tawana.com.au         Level 20
Tel:   +61 8 9389 3140               181 William Street
Fax:   +61 8 9389 3199               Melbourne VIC 3000

                                     Stock Exchange

                                     Australian Securities Exchange
                                     ASX Code: TAW

                                     JSE Limited
                                     JSE Code: TAW




                                                                         
Directors’ Report

Your Directors present their report on the Company and its controlled entities
(“consolidated entity”) for the half-year ended 30 June 2012.

Directors

The names of the Directors in office at any time during or since the end of the half-
year are as follows. All Directors have been in office for this entire period unless
otherwise stated.

Mr Warwick Grigor – Non-Executive Chairman
Mr Len Kolff – Managing Director
Mr Euan Luff – Non-Executive Director (resigned 15 June 2012)
Mr Julian Babarczy – Non-Executive Director
Mr Matthew Bowles – Non-Executive Director

Operating results

The loss of the consolidated entity for the half-year ended 30 June 2012 after
providing for income tax amounted to $1,062,797 (30 June 2011: $333,198).

No dividends were declared or paid during the half-year ended 30 June 2012.

Review of operations

Background

Tawana was incorporated as a public company on 16 November 1998 in Australia.
Operating through its various subsidiaries, the Company is involved in the
exploration for gold in West Africa, and evaluation of diamondiferous kimberlites and
alluvials, primarily in South Africa and Botswana. The Company’s objective is to
establish viable ore reserves and turn such projects into profitable operations.

The company also continues to expand its interests in evaluating other mineral
resources.

Tawana listed on ASX (as a primary listing) in April 2001 and JSE (as a secondary
listing) in November 2005. The Company’s head office is located in Perth, Australia.

Corporate Activities and Subsequent Events

The Company secured strike extensions via Option Agreement (pending due
diligence) to the Company’s existing 100% owned Mofe Creek Iron Ore Project on
8th May 2012. After securing strike extension to the Company’s Mofe Creek iron ore
project, the company secured Liberian regulatory approval and completed the
aeromagnetic survey over the Company’s project areas.

The Company announced on 15th February 2012 that it had signed a Heads of
Agreement (“HOA”) to acquire the gold rights to the Cape Mount Gold Project.


                                                                                   
Progression of the transaction required negotiation and signing of a Definitive
Agreement and was subject to, amongst other things, satisfactory due diligence by
Tawana. After conducting its due diligence investigations, Tawana elected not to
proceed with the transaction on 7th June 2012.

Infill soil sampling was completed on the Sinoe Northern anomaly during the quarter
thus completing all soil sampling over the project area. 1,200m of trenching was
completed on the Southern anomaly during the quarter for a total of 1,600m of
trenching. The Company signed an extension to the JV agreement entered into with
Global Mineral Investments LLC (‘GMI’) to extend the Option period whilst transfer of
the license is effectuated. The Company funded exploration during the first year and
will exercise its right to purchase the licence outright.

Legacy residential houses in South Africa were sold for ZAR2,000,000 to a local
company during the period as the Company continues to rationalise legacy assets
outside of its core focus.


During the period Mr Euan Luff resigned as a Non-Executive Director of the
Company.

On 27 July 2012, the Company announced that 20,000,000 options over ordinary
fully paid shares had been exercised at an exercise price of $0.01, raising $200,000.

On 6 August 2012, the Company announced the results of the aeromagnetics survey
for the Company’s 100% owned Mofe Creek project and JV strike extension which
was completed one month ahead of schedule.


Auditor’s independence declaration

The lead auditor’s independence declaration for the half-year ended 30 June 2012
has been received and is attached to this Directors’ Report.

Signed in accordance with a resolution of the Board of Directors.



Mr Warwick Grigor
Non-Executive Chairman

Dated this 11th day of September 2012




                                                                                   
Consolidated Statement of Comprehensive Income
For the half-year ended 30 June 2012

                                               30 June 2012     30 June 2011
                                                    $                $
Continuing operations
Revenue                                              62,665          253,564

Corporate costs                                     (354,465)       (269,871)
Depreciation                                          (2,322)         (1,948)
Employee benefits expense                           (213,260)       (204,496)
Exploration expenses written off                           -         (11,652)
Share based payments expense                        (496,660)              -
Other expenses                                       (82,951)        (68,413)
Loss before income tax expense                    (1,086,993)       (302,816)
Income tax expense                                         -               -
Net loss for the period from
continuing operations                             (1,086,993)       (302,816)
Profit/(Loss) from discontinued
operations after tax                                 24,196          (30,382)
Net loss for the period attributable to
Tawana Resources NL                               (1,062,797)       (333,198)

Other comprehensive loss
Loss on translation of foreign operations            (34,536)       (833,101)
Other comprehensive loss for the
period, net of tax                                   (34,536)       (833,101)
Total comprehensive loss for the
period attributable to Tawana
Resources NL                                      (1,097,333)     (1,166,299)

Earnings per share from continuing and
discontinuing operations
 Basic loss (cents)                                  (0.124)          (0.038)
 Diluted loss (cents)                                (0.124)          (0.038)

Earnings per share from continuing
operations
 Basic loss (cents)                                  (0.126)          (0.035)
 Diluted loss (cents)                                (0.126)          (0.035)

Earnings per share from discontinuing
operations
 Basic loss (cents)                                   0.002           (0.003)
 Diluted loss (cents)                                 0.002           (0.003)



  The above Consolidated Statement of Comprehensive Income should be read in
                   conjunction with the accompanying notes.


                                                                               5
Consolidated Statement of Changes in Equity
For the half-year ended 30 June 2012

                                         Note       30 June        31 December
                                                     2012              2011
                                                       $                $

Current assets
Cash and cash equivalents                  2         2,711,122         3,722,991
Trade and other receivables                             56,787            42,326
Assets held for sale                                         -           133,478
Total current assets                                 2,767,909         3,898,795

Non-current assets
Trade and other receivables                                  -            39,787
Property, plant and equipment                          154,967             7,534
Exploration expenditure                              5,555,555         5,081,927
Total non-current assets                             5,710,522         5,129,248

Total assets                                         8,478,431         9,028,043

Current liabilities
Trade and other payables                               112,059            83,223
Liabilities held for sale                               18,113                 -
Provisions                                              30,127            26,015
Total current liabilities                              160,299           109,238

Total liabilities                                      160,299           109,238

Net assets                                           8,318,132         8,918,805

Equity
Contributed equity                       4(a)       45,431,150        45,431,150
Reserves                                             3,346,267         2,884,143
Accumulated losses                                 (40,459,285)     (39,396,488)
Total equity                                         8,318,132         8,918,805



     The above Consolidated Statement of Financial Position should be read in
                   conjunction with the accompanying notes.




                                                                                
Consolidated Statement of Changes in Equity
For the half-year ended 30 June 2012
                                       Issued capital   Reserves    Accumulated losses     Total
                                             $             $                $               $

Balance at 1 January 2012               45,431,150      2,884,143       (39,396,488)     8,918,805

Loss for the period                               -             -       (1,062,797)      (1,062,797)
Other comprehensive loss for
the period                                        -      (34,536)                 -        (34,536)
Total comprehensive loss for the
period                                            -      (34,536)       (1,062,797)      (1,097,333)
Transactions with owners in
their capacity as owners
Options issued                                   -        496,660                 -        496,660
Balance at 30 June 2012                 45,431,150      3,346,267       (40,459,285)     8,318,132

Balance at 1 January 2011               36,482,279      (281,859)       (29,293,996)     6,906,424

Loss for the period                          -              -            (333,198)       (333,198)
Other comprehensive loss for                 -          (833,101)            -           (833,101)
the period
Total comprehensive loss for the             -          (833,101)        (333,198)       (1,166,299)
period
Transactions with owners in
their capacity as owners
Shares issued                            9,556,931          -                -            9,556,931
Share issue costs                       (1,006,350)         -                -           (1,006,350)
Options issued in respect of
share issue costs                            -           750,000              -           750,000
Balance at 30 June 2011                 45,032,860      (364,960)       (29,627,194)     15,040,706



                                                                        
The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes.




                                                                         
Consolidated Statement of Cash Flows
For the half-year ended 30 June 2012

                                         Note   30 June 2012     30 June 2011
                                                     $                $

Cash flows from operating activities
Receipts from customers                                14,276           16,639
Payments to suppliers and employees                  (747,966)        (806,515)
Interest received                                      62,665           70,328
Net cash flows used in operating
activities                                           (671,025)        (719,548)

Cash flows from investing activities
Payments for plant and equipment                     (149,756)         (10,727)
Proceeds from sale of plant and
equipment                                            258,532            36,393
Proceeds from sale of discontinued
operation                                                   -           14,604
Payments for exploration                             (468,640)        (176,830)
Net cash flows used in investing
activities                                           (359,864)        (136,560)

Cash flows from financing activities
Proceeds from issue of shares                               -        5,050,000
Share issue costs                                           -         (256,350)
Net cash from financing activities                          -        4,793,650

Net increase in cash and cash
equivalents                                        (1,030,889)       3,937,542
Cash and cash equivalents at beginning
of period                                           3,722,991          835,470
Effects of exchange rates on cash
holdings in foreign currencies                         19,020           (6,142)
Cash and cash equivalents at end of       2
period                                              2,711,122        4,766,870



  The above Consolidated Statement of Cash Flows should be read in conjunction
                         with the accompanying notes.




                                                                                
Notes to the Financial Statements
For the half-year ended 30 June 2012



1.   Basis of preparation

     The half-year consolidated financial statements are general purpose financial statements prepared in accordance with the
     requirements of the Corporations Act 2001, Australian Accounting Standard AASB 134: Interim Financial Reporting, Australian
     Accounting Interpretations and other authoritative pronouncements of the Australian Accounting Standards Board (“AASB”).

     It is recommended that these financial statements be read in conjunction with the annual financial report for the year ended 31
     December 2011 and any public announcements made by Tawana Resources NL and its controlled entities during the half-
     year in accordance with continuous disclosure requirements arising under the Corporations Act 2001.

     The half-year financial statements do not include full disclosures of the type normally included in annual financial statements.

     The same accounting policies and methods of computation have been followed in these interim financial statements as were
     applied in the most recent annual financial statements.

     Reporting Basis and Conventions

     The half-year financial statements have been prepared on an accruals basis and are based on historical costs modified by the
     revaluation of selected non-current assets, financial assets and financial liabilities for which the fair value basis of accounting
     has been applied.




                                                                                     10
2.    Cash and cash equivalents

      For the purposes of the half-year statement of cash flows, cash and cash equivalents comprised of the following:

                                                        30 June         31 December
                                                          2012              2011
                                                            $                 $
      Cash at bank and in hand                           2,691,122         3,702,991
      Cash on short-term deposit                            20,000            20,000
                                                         2,711,122         3,722,991

3.    Dividends

      No dividend has been declared or paid during the half-year or the previous corresponding period.

      The Company does not have any franking credits available for current or future years as it is not in a tax paying position.

4.    Contributed equity

(a)   Movements in share capital

                                                        30 June         31 December
                                                          2012              2011
                                                            $                 $
      Ordinary shares, fully paid                       45,431,150        45,431,150

      Movement in ordinary shares on
      issue
                                                       Number                  $
      Balance at beginning of period                  856,629,043          45,431,150
      Shares issued                                             -                   -
      Share issue costs                                         -                   -




                                                                                    
    Balance at end of period                           856,629,043           45,431,150

(b) Share options

                    Exer-cise   Expiry date    Balance at       Issued          Exercised           Expired or           Balance at
                      price                   beginning of     during the       during the       forfeited during       end of period
                                                 period         period           period             the period
                                                Number          Number           Number              Number               Number

    Unlisted
    options          $0.10       17 Jan 14       6,750,000                  -                -                      -       6,750,000
    Unlisted
    options          $0.07       18 Jun 12       4,000,000                  -                -        (4,000,000)                   -
    Unlisted
    options          $0.10       17 Jan 13       6,000,000                  -                -                      -       6,000,000
    Unlisted
    options          $0.07       17 Jan 13       6,750,000                  -                -                      -       6,750,000
    Unlisted
    options          $0.01      23 Feb 13       50,000,000                  -                -                      -      50,000,000
    Unlisted
    options          $0.01       31 Jul 12      20,000,000                  -                -                      -      20,000,000
    Unlisted
    options          $0.01       30 Jul 13      50,000,000                  -                -                      -      50,000,000
    Unlisted
    options          $0.03       9 Sep 12        5,000,000                  -                -                      -       5,000,000
    Unlisted
    options          $0.05       9 Sep 14        5,000,000                  -                -                      -       5,000,000
    Unlisted
    options          $0.01       8 Mar 14       25,000,000                  -                -                      -      25,000,000
    Unlisted
    options          $0.03      10 Nov 13        1,250,000                  -                -                      -       1,250,000
    Unlisted         $0.05      10 Nov 15        1,250,000                  -                -                      -       1,250,000




                                                                               
     options
     Unlisted
     options              $0.036         30 April 15                         -       28,500,000                  -             -    28,500,000

                                                              181,000,000            28,500,000                  -   (4,000,000)   205,500,000

5.   Segment information

     As the Company operates wholly in one business segment, being mineral exploration and in one geographical segment, being
     Africa, the Company has not identified and therefore, not disclosed, any segment information on the basis of the internal
     reports being provided to the chief decision maker, which is the board as a whole.

6.   Contingent assets and liabilities

     The consolidated entity does not have any material contingent assets or liabilities other than as disclosed in this report.

7.     Loss per share and headline earnings per share
    
      Classification of securities as ordinary shares

     The Company has only one category of ordinary shares included in basic loss per share.

     Classification of securities as potential ordinary shares

     There are currently no securities to be classified as dilutive potential ordinary shares on issue.

                                                                                  2012              2011
                                                                                 Number            Number

     Weighted average number of ordinary shares used in the
     calculation of basic loss per share                                         856,629,043      745,516,131

                                                                                     $                $

     Net loss from continuing and discontinuing operations                        (1,062,797)        (333,198)




                                                                                                      13
     Net loss from continuing operations                                    (1,086,993)        (333,198)

     The loss per share calculation as disclosed on the Statement of Comprehensive Income does not include instruments that could potentially dilute basic
     earnings per share in the future as these instruments were anti-dilutive in the periods presented. A summary of such instruments is as follows:

     Equity securities                                                    Number of         Number of
                                                                          securities         potential
                                                                                             ordinary
                                                                                              shares

     Options over ordinary shares                                         205,000,000       179,920,000

     20,000,000 options over ordinary fully paid shares were exercised and 1,500,000 new options have been issued subsequent to year end but prior to the
     date of issue of these financial statements.

     Headline earnings per share (unaudited)

     Reconciliation of net loss to headline earnings

                                                                                 Consolidated
                                                                             2011            2010
                                                                               $               $
     Net loss                                                               (1,086,993)       (333,798)
     Add:
      Profit/(Loss) from discontinued operations after tax                      24,196            (232)
     Headline earnings from continuing and discontinuing operations
     used in the calculation of headline earnings per share                 (1,062,797)       (333,430)

     Headline earnings per share (cents)                                        (0.124)          (0.04)

8.   Subsequent events


On 27 July 2012, the Company announced that 20,000,000 options over ordinary fully paid shares had been exercised at an
exercise price of $0.01, raising $200,000.




                                                                                                
On 6 August 2012, the Company announced the results of the aeromagnetics survey for the Company’s 100% owned Mofe Creek
project and JV strike extension which was completed one month ahead of schedule.


.




                                                                       
Directors’ Declaration


In accordance with a resolution of the Board of Directors, I state that:

In the opinion of the Directors:

1.   The financial statements and notes are in accordance with the Corporations Act
     2001 and:

     (a)   Comply with Accounting Standard AASB 134 Interim Financial Reporting
           and the Corporations Regulations 2001; and

     (b)   Give a true and fair view of the financial position of the consolidated entity
           as at 30 June 2012 and of its performance for the half-year ended on that
           date.

2.   There are reasonable grounds to believe that the Company will be able to pay
     its debts as and when they become due and payable.

On behalf of the Board.




Mr Warwick Grigor
Non-Executive Chairman

Dated this, 11th September 2012




                                                                                      
Independent Auditor’s Report




AUDITOR’S INDEPENDENCE DECLARATION UNDER SECTION 307C OF THE
CORPORATIONS ACT 2001 TO THE DIRECTORS OF TAWANA RESOURCES NL


I declare that, to the best of my knowledge and belief during the half-year ended 30 June
2012 there have been:
— no contraventions of the auditor independence requirements as set out in the Corporations Act
  2001 in relation to the review; and
— no contraventions of any applicable code of professional conduct in relation to the review.




William Buck Audit (VIC) Pty Ltd
ABN 59 116 151 136




J.C. Luckins
Director

Dated this 11th day of September, 2012




                                                                                                  17
INDEPENDENT AUDITOR’S REVIEW REPORT TO THE MEMBERS OF TAWANA RESOURCES NL
AND CONTROLLED ENTITIES

Report on the Half-Year Financial Report
We have reviewed the accompanying half-year financial report of Tawana Resources NL,
which comprises the consolidated statement of financial position as at 30 June 2012, the
consolidated statement of comprehensive income, consolidated statement of changes in
equity and consolidated statement of cash flows for the half-year ended on that date, notes
comprising a summary of significant accounting policies and other explanatory information,
and the directors’ declaration.

Directors’ Responsibility for the Financial Report
The directors of the company are responsible for the preparation of the half-year financial
report that gives a true and fair view in accordance with Australian Accounting Standards
(including Australian Accounting Interpretations) and the Corporations Act 2001 and for
such internal control as the directors determine is necessary to enable the preparation of the
half-year financial report that is free from material misstatement, whether due to fraud or
error.

Auditor’s Responsibility
Our responsibility is to express a conclusion on the half-year financial report based on our
review. We conducted our review in accordance with Auditing Standard on Review
Engagements ASRE 2410 Review of a Financial Report Performed by the Independent
Auditor of the Entity, in order to state whether, on the basis of the procedures described, we
have become aware of any matter that makes us believe that the financial report is not in
accordance with the Corporations Act 2001 including:
?   giving a true and fair view of the company’s financial position as at 30 June 2012 and its performance for
    the half-year ended on that date; and
?   complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations
    Regulations 2001.

As the auditor of Tawana Resources NL, 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. A review is substantially less in scope than an audit conducted in accordance
with Australian Auditing Standards and consequently does not enable us to obtain assurance
that we would become aware of all significant matters that might be identified in an audit.
Accordingly, we do not express an audit opinion.

Independence
In conducting our review, we have complied with the independence requirements of the
Corporations Act 2001.




                                                                                                            18
INDEPENDENT AUDITOR’S REVIEW REPORT TO THE MEMBERS OF TAWANA RESOURCES
AND CONTROLLED ENTITIES (CONT)

Conclusion
Based on our review, which is not an audit, we have not become aware of any matter that
makes us believe that the half-year financial report of Tawana Resources NL is not in
accordance with the Corporations Act 2001 including:
a) giving a true and fair view of the consolidated entity’s financial position as at 30 June 2012 and of its
   performance for the half year ended on that date; and
b) complying with AASB 134: Interim Financial Reporting and the Corporations Regulations 2001.

Matters Relating to the Electronic Presentation of the Reviewed Half Year Financial Report
This auditor’s review report relates to the half year financial report of Tawana Resources NL
for the half year ended 30 June 2012 included on the Tawana Resources NL web site. The
company’s directors are responsible for the integrity of the Tawana Resources NL web site.
We have not been engaged to report on the integrity of the Tawana Resources NL web site.
The auditor’s review report refers only to the half year financial report. It does not provide
an opinion on any other information which may have been hyperlinked to/from these
statements. If users of this report are concerned with the inherent risks arising from
electronic data communications they are advised to refer to the hard copy of the reviewed
half year financial report to confirm the information included in the reviewed financial
report presented on this web site.




William Buck Audit (VIC) Pty Ltd
ABN 59 116 151 136




J.C. Luckins
Director

Dated this 11th day of September, 2012




                                                                                                               19

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