TIDMNSN
RNS Number : 1048P
Natasa Mining Limited
28 September 2011
NATASA MINING LTD
Condensed consolidated interim financial statements for the
half-year ended 30 June 2011
Directors' Report
The Directors present their report together with the consolidated
financial statements for the six months ended 30 June 2011 and the
auditor's review report thereon.
The financial report has been presented in United States dollars
which is the Group's functional currency.
1. DIRECTORS
The names of the directors of the Company in office during or since
the end of the half-year are:
Chrisilios Kyriakou, LLB, Executive Chairman
Mr. Kyriakou has extensive business interests including commercial
properties, share investments and rural property. He was the Chief
Executive Officer of the Company's predecessor company, Natasa Mining
Ltd (inc. in Australia), since 1979 and was appointed to the Board
on 21 April 2010 as Executive Chairman of the Company.
Charles de Chezelles, MBA, Non-executive Director
Mr de Chezelles, aged 70, is a highly experienced financial industry
expert. Past positions include: General Manager, Banco Real S.A.,
London; Executive Director, Credit Suisse-First Boston (CSFB), London;
Director, First Boston Europe, London; Vice President, The First
Boston Corporation, New York; Corporate Account Executive, Smith
Barney, New York; Investment Analyst, Stralem & Company, New York.
He is currently Managing Director of Omega Trust Company Limited,
London. Mr de Chezelles sits on the board of several natural resources
companies based around the world and financial trusts. He was appointed
to the Board on 1 May 2010.
Ian H. Mann, HBA, Non-executive Director
Mr. Mann has been the President of Meridian Fund Managers Ltd since
2003, a BVI registered fund manager with two alternative investment
funds primarily investing in mining and oil and gas companies. Prior
to that, Mr. Mann held senior management and partner positions with
several Bermuda companies since returning in 1980 with an Honours
Business Administration degree from The University of Western Ontario
in London, Canada. He has been a non-executive Director of two Canadian
exchange listed mining companies, the first, for 10 years, a TSX
listed gold mining company and the second, for 3 years, a CDNX capital
pool company which merged with an oil and gas venture company and
re-listed on the TSX Venture exchange. He was appointed to the Board
on 1 February 2011.
Jonathan R. Reynolds B.Com (Hons), CA, F Fin, Finance Director
Mr. Reynolds has been the Chief Financial Officer of the Company's
predecessor company, Natasa Mining Ltd (inc. in Australia), since
2001. Prior to that he held the position of chief financial officer
with a number of other listed entities and before that was a senior
manager with an international firm of chartered accountants. He
is a member of the Institute of Chartered Accountants in Australia,
a fellow of the Financial Services Institute of Australasia and
holds a Bachelor of Commerce (Honours) degree. He was appointed
to the Board on 21 April 2010.
Company Secretary
Mr John B. Maguire, Company Secretary, has held this position and
been involved with the Group for the past 20 years.
2. CONSOLIDATED RESULTS AND REVIEW OF OPERATIONS The net profit
after tax of the Group attributable to members for the six months
ended 30 June 2011 was $2,093,865 (30 June 2010: loss of
$3,836,997). During the period, the Group: -- Purchased various
equity securities at a cost of $6,901,603. -- Sold various equity
and debt securities realising proceeds of $5,144,837 and a net
profit on disposal of $2,864,262. -- Advanced a short-term,
secured loan of $6,827,839 to Murray Morgan Investments Ltd. --
Expended $183,237 to renew its uranium exploration licences in
respect of the Morondava uranium project in Madagascar. --
Generated interest income of $282,973 and dividend income of
$217,912. -- Incurred legal fees of $33,523 and travel expenses
of $217,295, principally in relation to investigating and
pursuing investment opportunities. -- Recognised a foreign
exchange gain of $521,454 following the weakening of the US
dollar, vis-a-vis, in particular, the Australian dollar.
3. SUBSEQUENT EVENTS
Since 1 July 2011, the Group : -- Purchased various equity
securities at a cost of $1,864,084. -- Sold various equity
securities realising proceeds of $5,419,135 and a net profit on
disposal of $1,543,411. -- Entered into an agreement to acquire
acquired six granted Coal Leases, covering an area of 22,688 ha,
in the Fox Creek area of the Province of Alberta, Canada for a
consideration of $5 million. In a report filed by the vendor of
the Leases with relevant Canadian authorities on 17 December 2007,
in accordance with National Instrument 43-101 - Standards of
Disclosure for Mineral Projects, it was stated that these Coal
Leases consist of 847 million tonnes of a measured and indicated
coal resource. -- Through its subsidiary, UMC Energy plc (UMC),
exercised an option to acquire a 100% interest in two off-shore
and one on-shore Petroleum Prospecting Licences in Papua New
Guinea. The consideration payable upon exercise of the option is
the issue by UMC of 240 million fully paid ordinary shares in the
capital of that company. Following the allotment of these new
ordinary shares by UMC, the Company will hold an equity interest
in UMC of 42.3%. -- Entered into a sub-underwriting agreement with
an Australian Securities Exchange listed company in relation to a
rights issue being undertaken by that company. As a result of the
agreement, the Group may be required to subscribe for up to
A$1.445 million of new shares in that company. -- Recovered the
$6,827,839 short-term secured loan advanced in June 2011 to Murray
Morgan Investments Ltd. -- Repaid capital to shareholders of
$10,234,683 following approval of shareholders at an extraordinary
general meeting held on 29 June 2011 and confirmation by the Grand
Court of the Cayman Islands on 12 August 2011. Other than the
matters discussed above, there has not arisen in the interval
between the end of the half-year and the date of this report any
item, transaction or event of a material and unusual nature
likely, in the opinion of the Directors of the Company, to affect
significantly the operations of the consolidated entity, the
results of those operations or the state of affairs of the
consolidated entity, in subsequent financial years.
C. Kyriakou
Director
Condensed Consolidated Interim Income Statement
for the six months ended 30 June 2011
Restated
30 June 30 June
2011 2010
$ $
Total revenue from services - -
Gain/(loss) on sale of equity and
debt instruments 2,864,262 (43,252)
Financial income 500,885 1,005,647
Personnel expenses (656,564) (1,060,796)
Audit fees (37,650) (32,100)
Audit fees to subsidiary and previous
auditors (27,217) (53,689)
Depreciation and amortisation (5,196) (2,814)
Finance expenses - (147,881)
Reversal of financial advisory fees - 154,081
Foreign exchange gains / (losses) 521,454 (2,059,579)
Legal fees (33,523) (63,337)
Redomiciliation costs - (238,850)
Kazakhstan project due diligence
costs - (648,037)
Morondava licence fees (183,237) (105,177)
Travel expenses (217,295) (181,918)
Other administrative expenses (632,054) (359,295)
Profit/(loss) before tax 2,093,865 (3,836,997)
Income tax expense - -
Profit/(loss) for the period 2,093,865 (3,836,997)
Attributable to:
Equity holders of the Company 2,171,860 (3,792,309)
Minority interest (77,995) (44,688)
Profit for the year 2,093,865 (3,836,997)
Cents Cents
Basic earnings/(loss) per share 7.4 (12.9)
Diluted earnings/(loss) per share 7.4 (12.9)
The above Condensed Consolidated Interim Income Statement should
be read in conjunction with the accompanying notes.
Condensed Consolidated Interim Statement of Comprehensive Income
for the six months ended 30 June 2011
Restated
30 June 30 June
2011 2010
$ $
Profit/(loss) for the period 2,093,865 (3,836,997)
Foreign exchange movement (69,891) (165,157)
Change in fair value of equity
securities available for sale,
net of tax (3,067,899) 2,695,536
Total comprehensive loss for
the period (1,043,925) (1,306,618)
Attributable to:
Equity holders of the Company (965,652) (1,250,775)
Minority interest (78,273) (55,843)
(1,043,925) (1,306,618)
The above Condensed Consolidated Interim Statement of Comprehensive
Income should be read in conjunction with the accompanying notes.
Condensed Consolidated Statement of Financial Position
as at 30 June 2011
30 June Restated30 June
2011 2010 31 December2010
Note $ $ $
ASSETS
Current Assets
Cash and cash
equivalents 20,008,760 33,355,547 29,315,691
Trade and other
receivables 4 6,830,882 1,202,190 738,955
Total Current Assets 26,839,642 34,557,737 30,054,646
Non-Current Assets
Trade and other
receivables - - 307,358
Exploration and
evaluation expenditure
- intangible 5 2,910,716 2,901,109 2,978,035
Other financial assets 26,215,591 7,995,616 23,625,554
Plant and equipment 9,720 8,739 15,036
Total Non-Current Assets 29,136,027 10,905,464 26,925,983
Total Assets 55,975,669 45,463,201 56,980,629
LIABILITIES
Current Liabilities
Trade and other
payables 248,953 638,608 209,988
Total Current
Liabilities 248,953 638,608 209,988
Total Liabilities 248,953 638,608 209,988
NET ASSETS 55,726,716 44,824,593 56,770,641
EQUITY
Share capital 7 41,723,622 41,723,622 41,723,622
Reserves 3,184,622 2,598,534 6,322,134
Retained earnings 10,654,063 211,684 8,482,203
Total equity
attributable to equity
holders of the Company 55,562,307 44,533,840 56,527,959
Minority interest 164,409 290,753 242,682
TOTAL EQUITY 55,726,716 44,824,593 56,770,641
The above Condensed Consolidated Interim Statement of Financial
Position should be read in conjunction with the accompanying
notes.
Condensed Consolidated Statement of Changes in Equity
as at 30 June 2011
2011
Share Foreign
Fair based currency
Share value payments translation Retained Minority Total
capital reserve reserve reserve Earnings Total interest equity
$ $ $ $ $ $ $ $
----------- ------------ --------- ------------ ----------- ------------ --------- ------------
Balance at 1
January 2011 41,723,622 6,302,603 57,000 (37,469) 8,482,203 56,527,959 242,682 56,770,641
Total
comprehensive
income for
the period
Profit - - - - 2,171,860 2,171,860 (77,995) 2,093,865
Total other
comprehensive
expense - (3,067,899) - (69,613) - (3,137,512) (278) (3,137,790)
----------- ------------ --------- ------------ ----------- ------------ --------- ------------
Total
comprehensive
income for
the period - (3,067,899) - (69,613) 2,171,860 (965,652) (78,273) (1,043,925)
----------- ------------ --------- ------------ ----------- ------------ --------- ------------
Balance at 30
June 2011 41,723,622 3,234,704 57,000 (107,082) 10,654,063 55,562,307 164,409 55,726,716
----------- ------------ --------- ------------ ----------- ------------ --------- ------------
The above Condensed Consolidated Interim Statement of Changes in Equity
should be read in conjunction with the accompanying notes.
Condensed Consolidated Statement of Changes in Equity
as at 30 June 2011
2010 (Restated)
Foreign
Fair Share based currency
Share value payments translation Retained Minority Total
capital reserve reserve reserve Earnings Total interest equity
$ $ $ $ $ $ $ $
------------ ---------- ------------ ------------ ------------ ------------ --------- ------------
Balance at 1
January 2010 39,533,645 - 4,321,100 597,969 1,710,517 46,163,231 346,596 46,509,827
Total
comprehensive
income for the
period
Loss - - - - (3,792,309) (3,792,309) (44,688) (3,836,997)
Total other
comprehensive
income - 2,695,536 - (154,002) - 2,541,534 (11,155) 2,530,379
------------ ---------- ------------ ------------ ------------ ------------ --------- ------------
Total
comprehensive
income for the
period - 2,695,536 - (154,002) (3,792,309) (1,250,775) (55,843) (1,306,618)
------------ ---------- ------------ ------------ ------------ ------------ --------- ------------
Transactions
with owners,
recorded
directly in
equity
Contributions by
owners
Shares issued on
Note
conversion 8,219,343 - - - - 8,219,343 - 8,219,343
Capital return -
in cash (8,654,959) - - - - (8,654,959) - (8,654,959)
Capitalisation
of reserves
arising on
redomiciliation 2,625,593 - (4,321,100) (597,969) 2,293,476 - - -
Share-based
payment
transactions - - 57,000 - - 57,000 - 57,000
------------ ---------- ------------ ------------ ------------ ------------ --------- ------------
Total
contributions
by owners 2,189,977 - (4,264,100) (597,969) 2,293,476 (378,616) - (378,616)
------------ ---------- ------------ ------------ ------------ ------------ --------- ------------
Total
transactions
with owners 2,189,977 - (4,264,100) (597,969) 2,293,476 (378,616) - (378,616)
------------ ---------- ------------ ------------ ------------ ------------ --------- ------------
Balance at 30
June 2010 41,723,622 2,695,536 57,000 (154,002) 211,684 44,533,840 290,753 44,824,593
------------ ---------- ------------ ------------ ------------ ------------ --------- ------------
The above Condensed Consolidated Interim Statement of Changes in Equity
should be read in conjunction with the accompanying notes.
Condensed Consolidated Interim Statement of Cash Flows
for the six months ended 30 June 2011
30 June 30 June
2011 2010
$ $
Cash Flows Used In Operating Activities
Cash payments in the course of operations (1,750,064) (2,264,471)
Cash used in operations (1,750,064) (2,264,471)
Financial income received 500,885 1,095,658
Finance expenses - (147,881)
Net cash used in operating activities (1,249,179) (1,316,694)
Cash Flows Used In Investing Activities
Loan to other entities (6,827,839) -
Recovery of loan to other entities - 2,500,000
Recovery of funds placed in lawyer's escrow
account for purchase of investments - 200,000
Purchase of equity and debt instruments (6,901,603) (5,135,713)
Proceeds on sale of equity and debt
instruments 5,144,837 269,534
Payments for purchases of plant and equipment - (6,535)
Net cash used in investing activities (8,584,605) (2,172,714)
Cash Flows Used In Financing Activities
Capital return - (8,654,959)
Proceeds from the issue of Convertible
Note - 3,660,890
Net cash used in financing activities - (4,994,069)
Net decrease in cash and cash equivalents (9,833,784) (8,483,477)
Cash at 1 January 29,315,691 43,703,987
Exchange fluctuations 526,853 (1,864,963)
Cash at 30 June 20,008,760 33,355,547
The above Condensed Consolidated Interim Statement of Cash Flows
should be read in conjunction with the accompanying notes.
Natasa Mining Ltd
Notes to the condensed consolidated interim financial
statements
1. Reporting entity
Natasa Mining Ltd (the "Company") is a company incorporated in the
Cayman Islands. The condensed consolidated interim financial
statements of the Company as at and for the six months ended 30 June
2011 comprises the Company and its subsidiaries (together referred to
as the "Group") and the Group's interests in associates and jointly
controlled entities. The Company was incorporated on 14 April 2010 and
acquired all the assets and liabilities of Natasa Mining Ltd
(incorporated in Australia ("Natasa"). The acquisition of the assets
and liabilities was met by the issue of 29,241,951 ordinary shares in
the Company to the shareholders of Natasa on a 1:1 basis such that the
shareholders of Natasa became the shareholders of the Company. The
comparative information for the 6 months to 30 June 2010 is that of
the Group as if no capital reconstruction had taken place.
The financial report is presented in United States dollars which
is the Group's functional currency.
The consolidated annual financial report of the Group as at and for
the year ended 31 December 2010 is available at www.natasamining.com.
2. Statement of compliance
The condensed consolidated interim financial statements have
been prepared in accordance with International Accounting Standard
34 "Interim Financial Reporting".
The condensed consolidated interim financial statements do not
include all of the information required for full annual financial
statements, and should be read in conjunction with the consolidated
annual financial statements of the Group as at and for the year
ended 31 December 2010.
The annual financial statements have been prepared in accordance
with International Financial Reporting Standards (IFRSs) as adopted
by the European Union.
These condensed consolidated interim financial statements were
approved by the Board of Directors on 28 September 2011.
3. Significant accounting policies
The accounting policies applied by the Group in these condensed
consolidated financial statements are the same as those applied
by the Group in its consolidated financial statements as at and
for the year ended 31 December 2010.
4. Trade and other receivables
30 June 30 June 31 December
2011 2010 2010
$ $ $
Current
Funds held in lawyer's escrow
account - 1,200,000 -
Loan to third party 6,827,839 - -
Proceeds due from sale of
investments - - 737,400
Other debtors 3,043 2,190 1,555
6,830,882 1,202,190 738,955
Non-current
Convertible note receivable - - 307,358
- - 307,358
Loan to third party was a secured short-term loan which was
recovered in August 2011 and generated a return at 1.7% pa. Funds
held in lawyer's escrow account related to purchase consideration
for a proposed acquisition of a Kazakhstan gold project and
generated interest at 0.5% pa.
5. Exploration and evaluation expenditure - intangible
Critical accounting judgements in applying the Group's accounting
policies The Morondava uranium exploration project has yet to
reach a stage of development where a determination of the
technical feasibility or commercial viability can be assessed. In
addition, as Madagascar is presently experiencing a period of
political upheaval and uncertainty, the Group has resolved to
take a cautious approach to exploration and accordingly has not
conducted exploration activities during the current financial
period. In these circumstances, whether there is any indication
that the asset has been impaired is a matter of judgement, as is
the determination of the quantum of any required impairment
adjustment. The Directors have used their experience to conclude
that no impairment adjustment is required in the current period
(2010: $nil).
6. Commitments and contingent liabilities
The Group has no commitments for capital or revenue purchases
other than those entered into in the ordinary course of business.
The Group has no commitments under non-cancellable leases.
The Group has no contingent liabilities.
7. Share capital
31
30 June 30 June December
2011 2009 2010
Issued and paid up
capital $ $ $
29,241,951 (2010 :
29,241,951) ordinary
shares, fully paid 41,723,622 41,723,622 41,723,622
Reconciliation of issued capital
30 June 30 June 31 December
2011 2010 2010
Number Number Number
Balance at
beginning
of
half-year 29,241,951 19,373,530 19,373,530
On
conversion
of Note - 9,868,421 9,868,421
Balance at
30 June 29,241,951 29,241,951 29,241,951
8. Operating segments
The Group has one reportable segment, as described below, which
represents the Group's strategic business unit. The strategic
business unit is that of investment in mineral exploration and
development projects and companies. The Board of Directors reviews
internal management reports at least monthly. Information regarding
the results of the reportable segments is included below.
Performance is measured based on the segment profit before income
tax as included in the internal management reports that are reviewed
by the Board of Directors. There is no inter-segment pricing.
Restated
Information about reportable 30 June 30 June
segments 2011 2010
$ $
External revenue - -
Gain / (Loss) on sale of equity
and debt instruments 2,864,262 (43,252)
Financial income 500,885 1,005,647
Finance expenses - (147,881)
Depreciation and amortisation (5,196) (2,814)
Reportable segment profit /
(loss) before income tax 2,093,865 (3,836,997)
Share of loss of equity method
investees - -
Reportable segment assets 55,975,669 45,463,201
Capital expenditure - (5,539)
Geographical segmentsThe segment is managed on a worldwide basis.
Individual assets are located in various countries. In presenting
information on the basis of geographical segments, segment's
assets are based on the geographical location of the assets.
Non-current assets
Restated
30 June 30 June
2011 2010
$ $
Australia 13,275,491 72,785
Europe 4,136,635 7,834,468
Africa 2,910,716 2,901,109
North America 8,813,184 97,102
Total 29,136,026 10,905,464
The Group did not generate any revenue during the financial
period ended 30 June 2011 (2010 : $nil).
9. Prior year adjustment
On 16 October 2009, UMC Energy plc (UMC) became a subsidiary
of the Company. The fair value of the net assets of UMC both
at 16 October 2009 and on 31 December 2009 were provisionally
determined by the directors to be $nil. Prior to 16 October
2010, the fair value of the net assets of UMC at the date of
acquisition were subsequently determined by the directors to
be $3,066,266. The comparative figures for 30 June 2010 have,
as a result, been re-stated as follows:
Restated
30 June 30 June
2010 2010
$ $
Income statement
Profit attributable to equity
holders 44,688 -
Minority interest (44,688) -
Basic (loss) per share (cents) (12.9) (13.1)
Diluted (loss) per share (cents) (12.9) (13.1)
------------ ----------
Statement of comprehensive income
Loss attributable to equity holders (109,314) -
Foreign exchange loss 165,157 -
Minority interest (55,843) -
------------ ----------
Statement of financial position
Reserves (154,002) -
Retained earnings 2,764,358 -
Exploration and evaluation 2,901,109 -
expenditure - intangible
Minority interest 290,753 -
------------ ----------
10. Post balance sheet events
Since 1 July 2011, the Group: -- Purchased various equity
securities at a cost of $1,864,084. -- Sold various equity
securities realising proceeds of $5,419,135 and a net profit
on disposal of $1,543,411. -- Entered into an agreement to
acquire acquired six granted Coal Leases, covering an area
of 22,688 ha, in the Fox Creek area of the Province of
Alberta, Canada for a consideration of $5 million. In a
report filed by the vendor of the Leases with relevant
Canadian authorities on 17 December 2007, in accordance with
National Instrument 43-101 - Standards of Disclosure for
Mineral Projects, it was stated that these Coal Leases
consist of 847 million tonnes of a measured and indicated
coal resource. -- Through its subsidiary, UMC Energy plc
(UMC), exercised an option to acquire a 100% interest in two
off-shore and one on-shore Petroleum Prospecting Licences in
Papua New Guinea. The consideration payable upon exercise of
the option is the issue by UMC of 240 million fully paid
ordinary shares in the capital of that company. Following
the allotment of these new ordinary shares by UMC, the
Company will hold an equity interest in UMC of 42.3%. --
Entered into a sub-underwriting agreement with an Australian
Securities Exchange listed company in relation to a rights
issue being undertaken by that company. As a result of the
agreement, the Group may be required to subscribe for up to
A$1.445 million of new shares in that company. -- Recovered
the $6,827,839 short-term secured loan advanced in June 2011
to Murray Morgan Investments Ltd. -- Repaid capital to
shareholders of $10,234,683 following approval of
shareholders at an extraordinary general meeting held on 29
June 2011 and confirmation by the Grand Court of the Cayman
Islands on 12 August 2011.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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