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Avocet Mining PLC (AVM)

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Wednesday 28 July, 2010

Avocet Mining PLC

Interim Results

RNS Number : 0338Q
Avocet Mining PLC
28 July 2010
 



INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2010

 

·     Total gold production of 97,747 ounces in the six months ended 30 June 2010 (1), compared with 56,297 ounces for the six months ended 30 September 2009

·     Inata reaches commercial production - June gold production of 11,491 ounces, and Q2 production of 31,225 ounces at US$569/oz in first quarter of commercial operation (1)

·     EBITDA (2) of US$28.7 million versus US$15.6 million for the six months ended 30 September 2009 -EBITDA in Q3 and Q4 2010 expected to be similar to Q2 of US$24.6 million

·     Pre-tax profits of US$11.1 million versus a loss of US$4.5 million in the six months ended 2009

·     Accelerated exploration programme in progress at Inata and surrounding region - airborne geophysical survey completed at Bélahouro

·     Strategic review of South East Asian assets expected to be complete by end of 2010

·     Successful completion of listing on Oslo Børs with trading from 16 June 2010

·     Brett Richards, Interim CEO since June 2010, appointed as CEO with immediate effect

·     Russell Edey appointed to the board as Chairman-elect; Barry Rourke appointed to the board and as Chairman of the Audit Committee

Period (3)

6 months ended

30 June 2010

Unaudited

6 months ended

 30 September 2009

Unaudited

9 months ended

31 December 2009

Audited

Total gold production (ounces)(1)

97,747

56,297

82,174

Average realised gold price (US$/oz)

1,170

946

995

Cash production costs (US$/oz)

712

702

650

EBITDA (2) (US$000)

28,674

15,585

24,503

Profit before tax and exceptionals (US$000)

11,473

3,425

7,888

Exceptional items (US$000)

(377)

(7,957)

(18,443)

Profit/(loss) before tax (US$000)

11,096

(4,532)

(10,555)

(1)   All costs and revenues at Inata prior to 31 March 2010 were related to the testing and development phase, prior to commencement of commercial operations, and have been capitalised. However, total gold poured in this period has been included in total gold production.

(2)   As defined in the Condensed Consolidated Income Statement.

(3)   The Company changed its year end reporting date from March to December with effect from 31 December 2009. H1 financial comparatives therefore represent the six months ended 30 September 2009, being the previously reported H1 results.

 

Brett Richards, Chief Executive Officer, commented:

 

"The progress achieved at Inata in the first half of the year has been better than expected.  The ramp up to in excess of 10,000 ounces of gold production per month was achieved earlier than originally anticipated and we are on track to deliver 220,000 ounces of production in 2010.  Our South East Asian assets continue to generate positive cash flow despite the challenging operating environments at Penjom and North Lanut.  However, we are conducting a strategic review of these assets within which we are considering numerous options."

 

Avocet will host a conference call on Wednesday 28 July 2010 at 09:30am (London, UK time) to update investors and analysts on its results.

 

Participants may join the call by dialling one of the three following numbers, approximately 10 minutes before the start of the call.

 

From UK:(toll free) 0808 238 7396

From Norway:(toll free) 800 187 79

From rest of world:+ 44 (0)20 3364 5947

Participant pass code:726977#

 

A live audio webcast of the call will be available on:

http://mediaserve.buchanan.uk.com/2010/avocet280710/registration.asp

 

A replay of the webcast will be available on the same link from 11am on Wednesday 28 July 2010.

 

For further information please contact:

Avocet Mining PLC
Buchanan Communications
Ambrian Partners Limited
J.P. Morgan Cazenove
Arctic Securities
First Securities
 
Financial PR Consultants
NOMAD and Joint Broker
Lead Broker
Financial Adviser
Financial Adviser
Brett Richards, CEO
 Mike Norris, FD

Hans-Arne L'orange, EVP Business Development & Investor Relations

Bobby Morse

Katharine Sutton

Richard Brown

Richard Greenfield

Michael Wentworth-Stanley
Anish Patel

Arne Wenger

Kim Galtung Døsvig

Stein Hansen

Eirik Lilledahl

 

+44 20 7766 7676

+44 20 7466 5000

+44 7802 875227

+44 20 7634 4700

+44 20 7588 2828

+47 21013100

+47 2323 8000

www.avocet.co.uk

www.buchanan.uk.com

www.ambrian.com

www.jpmorgancazenove.com

www.arcticsec.no

www.first.no

 

 

Notes to Editors

 

Avocet Mining PLC ("Avocet" or "the Company") is a gold mining company listed on the AIM market of the London Stock Exchange (Ticker: AVM.L) and the Oslo Børs (Ticker: AVM.OL). The Company's principal activities are gold mining and exploration in Burkina Faso (as 90 per cent owner of the Inata gold mine), Malaysia (as 100 per cent owner of the Penjom gold mine, the country's largest gold producer) and Indonesia as 80 per cent owner of the North Lanut gold mine and Bakan project in North Sulawesi).

 

The Company recently announced that it had initiated exploration within the Inata mining licence area and in the surrounding Bélahouro district with the objective of significantly increasing Inata's resource and reserve base as well as investigating the highly prospective Souma Trend, located 20 km from the Inata mill.  The Company has a number of other advanced exploration projects in West Africa and South East Asia.

 

Background to operations

 

Inata has a resource of 1.7 million ounces and reserves of 932,000 ounces.  Inata poured first gold in December 2009 and has now reached a production rate in excess of 11,000 ounces per month. Other assets in West Africa include exploration licences in Burkina Faso, Guinea and Mali (the most advanced being the Tri-K gold exploration project in Guinea with a resource of 666,500 ounces).

 

Penjom is Malaysia's largest gold mine and was developed by Avocet in an area of historic alluvial mining. The mine is located in Pahang State, approximately 120 km north of the country's capital, Kuala Lumpur.

 

North Lanut in North Sulawesi, Indonesia, was developed by Avocet from the exploration stage and has produced over 270,000 ounces since it was commissioned in 2004.  North Lanut is located within a Contract of Work which includes exploration and mining rights over approximately 50,000 hectares in an area highly prospective for gold.  Avocet holds an 80 per cent interest and an Indonesian company, PT Lebong Tandai, owns the remaining 20 per cent.

 

CHAIRMAN'S STATEMENT

 

During the past six months Inata has improved production to over 11,000 ounces per month and is close to completing its ramp up to full capacity.  This is a significant achievement and confirms Inata's emergence as the Company's new flagship operation.  Inata's grades and recovery levels are comparing well against management's expectations, while the results of an airborne geophysical survey of Inata and its surrounding region are most encouraging.  An accelerated drilling programme is now under way as the first step towards what we hope will be significant growth in resources and reserves in the Bélahouro region over the next twelve months. The success achieved at Inata confirms the potential of the assets acquired by the Company twelve months ago.

 

In tandem with the Company's strategy of growth in West Africa, a strategic review of our South East Asian assets has been initiated with the aim of ensuring these assets deliver the maximum value for the Group.  As part of this process, discussions have taken place with a number of parties, and continue, that may or may not result in the disposal of the Company's assets in South East Asia.  However, a number of other outcomes are under review, including the introduction of new partners in the region able to add value to our development projects, as well as the continued development and expansion of the assets by Avocet. The strategic review is expected to be completed by the end of 2010.  In the half year our South East Asian assets generated net operating cash flow of US$11.6 million, underpinning the Group in the first quarter, when Inata was still in commissioning.

 

At our Annual General Meeting on 16 June 2010, we were pleased to be able to announce our successful listing on the Oslo Børs. Following the acquisition of Wega Mining ASA last year, approximately one third of our shareholders are Scandinavian, principally Norwegian, and this listing has allowed them to trade on a familiar platform, as well as exposing the Company to the considerable interest shown in the Company by the Scandinavian investment community.

 

The gold price remained robust, and Inata's production ramp up means the Company has greater exposure to robust prices, which many commentators in the gold sector expect to continue for the foreseeable future.

 

People

 

A number of important changes have recently taken place at board level. 

 

I am pleased to be able to announce that Brett Richards, Interim Chief Executive since 1 June, has today been appointed the Company's Chief Executive Officer. Brett brings experience of working in Africa and developing larger mining companies that will be invaluable in achieving this goal for Avocet. He was a senior vice president of Katanga Mining Limited from 2005 to 2009, and prior to that held senior management roles at Kinross Gold. Since joining Avocet in 2009, Brett has been instrumental in building the management team at Inata which has successfully completed the construction and commissioning of the mine.

 

I am also pleased to welcome Russell Edey and Barry Rourke to the board, as announced earlier this month.  Russell was previously Chairman of AngloGold Ashanti Limited, and had served on its board since 1998. It is intended that he be appointed Chairman of Avocet's board on 15 September 2010.  Barry was appointed Chairman of the Audit Committee, having previously held the position of Partner at PricewaterhouseCoopers for 17 years, and has significant experience in the resources sector.

 

In September I will step down as Chairman having been in that role for 15 years, since the Company's listing on the London Stock Exchange in 1996, and for five years prior to that as Chairman of the Company's predecessor, Avocet Ventures, in Vancouver - a total of 20 years. I have overseen Avocet's development as an emerging mid-tier gold producer and believe the Company is now well positioned for growth and development. I am delighted to bring on board Russell Edey, whose track record of strong leadership at one of the world's largest and most successful gold producers will be a significant advantage as Avocet goes forward, as will Barry Rourke, with his finance and resource sector experience.

 

Outlook

 

In the second half of 2010 we will complete Inata's ramp up to an annualised production rate of 140,000 ounces.  In West Africa it will also be a priority to accelerate future growth in resources, reserves and gold produced, through aggressive exploration and expansion planning.  In South East Asia, the conclusion of our strategic review will determine how we can extract the maximum value from our assets in that region in order to help Avocet grow into a mid-tier gold mining and exploration company.

 

I would like to make a special mention of the hard work and expertise of all our teams throughout the Group.  I thank them for all their efforts during the first half year and wish them a safe and successful remainder of the year and into the future ahead.

 

 

Nigel McNair Scott

28 July 2010

 

CHIEF EXECUTIVE OFFICER'S STATEMENT AND OPERATIONAL REVIEW

 

I am very pleased to be able to report on the successful commissioning and ramp up of the Inata gold mine to over 11,000 ounces per month.   This is an impressive achievement and demonstrates the Company's continued ability to bring development projects through the challenges of the construction and ramp up phases to steady state production.  The limited amount of previous drilling in the Bélahouro region, especially within the Inata mining licence area itself, represents a real opportunity for growth.  Inata is now the cornerstone of our organic growth plans in West Africa, which is the first of two strategic thrusts that I see as critical for our company.

 

The second is to ensure we maximise the value of our assets in South East Asia.  Our management teams at both Penjom and North Lanut have continued to deal with the operational challenges at their respective mines with considerable dedication and professionalism, and I believe the strategic review will demonstrate there is real value to be extracted from our assets in that region.

 

I am confident we have the organisational capacity and robustness within the assets across the organisation to execute on both of these strategic thrusts, and to become a higher margin mid-tier producer.

 

Gold production and cash costs


2010


2009(2)

 


Gold produced (oz)

Cash cost (US$/oz)


Gold produced (oz)

Cash cost (US$/oz)

 


Q1

Q2

H1

Q1

Q2

H1(1)


H1

H2

2009

H1

H2

2009

Inata

19,838

31,225

51,063

n/a

569

569


-

-

-

-

-

-

Penjom

13,669

10,461

24,130

818

1,119

949


31,741

30,913

62,654

680

731

705

North Lanut

11,370

11,184

22,554

635

678

656


23,196

23,698

46,894

495

604

550

Total

44,877

52,870

97,747

735

701

712


54,937

54,611

109,548

602

676

639

 

(1) H1 total cash cost excludes Inata's Q1 production & cash costs                                                                              (2) Calendar 2009 comparatives - H1 Jan to Jun, H2 Jul to Dec

 

Avocet's three mines produced a total of 97,747 ounces of gold during the first six months of 2010. Of these, 19,838 ounces were produced by Inata in the first quarter, before the mine reached commercial production and therefore no cash cost is reported for that quarter at Inata.  In the second quarter, Inata's production increased to 31,225 ounces and although it has not yet reached design capacity, cash costs in the quarter of US$569/oz were nonetheless sufficiently low to compensate for higher costs in South East Asia, resulting in a total cash cost for the Group of US$712/oz in the first half.  Penjom's first half production was lower than planned, and costs higher, as waste stripping continues to facilitate greater access to ore zones.  Half year production at North Lanut of 22,554 ounces was broadly in line with previous half year periods, and slightly above guidance; costs are higher in 2010 due to mining two pits and greater leach pad management required. 

 

WEST AFRICA REGION

 

Inata - Burkina Faso

 


3 months ended

31 March 2010

3 months ended

30 June 2010

6 months ended

30 June 2010

Production statistics(1)




Ore mined (tonnes)

342,000

418,000

760,000

Waste mined (tonnes)

2,005,000

2,437,000

4,442,000

Ore and waste mined (tonnes)

2,347,000

2,855,000

5,202,000

Ore processed (tonnes)

228,000

389,000

617,000

Average ore head grade (g/t Au)

2.80

2.87

2.84

Process recovery rate

94%

95%

95%

Gold produced (ounces)

19,838

31,225

51,063

Cash costs (US$/oz)(1)




- mining

n/a

147

147

- processing

n/a

211

211

- royalties and overheads

n/a

211

211

Total cash cost (US$/oz)

n/a

569

569

 

(1) Production statistics for six months ended 30 June 2010; cash costs for Q2 only, as Inata had not reached commercial production in Q1.

 

Following Inata's first gold pour in December 2009, the first shipment and sale of gold took place in February 2010, and production levels have ramped up steadily since then, with production of 11,491 ounces achieved in June.  A number of engineering and design issues in the plant have been successfully resolved during the ramp up period, allowing mill throughput to steadily increase to 240 tonnes per hour of ore processed.   An upgrade to the cyclone feed pumps, the major remaining project required to reach design capacity of 287 tonnes per hour, is scheduled to occur during August.

 

Mining activity, which commenced in the early part of 2009, has progressed in line with expectations.  The arrival of a second mining fleet in the second half of 2010 will allow mining to keep up with the mill once it reaches design throughput, while also starting to strip the second pit to be mined - Inata Central. During the period, ore mined exceeded mill throughput by 143,000 tonnes, resulting in an increase in the ore stockpile.  Early reconciliation of grades mined against expectations has been positive, while recovery levels have reached design levels earlier than forecast.

 

Throughout the first quarter, Inata was in the ramp up stage and had not reached commercial production.  Accordingly all revenue and costs for the quarter were capitalised and no cash cost is reported for the first quarter. Since 1 April 2010, when commercial production commenced, all revenue and costs at Inata have been recognised in the income statement and cash costs are reported from that date.  Cash costs of US$569/oz in the second quarter were in line with expectations as gold production increased steadily from 9,166 ounces in April to 11,491 ounces in June. In the second half, production is expected to average 12,000 ounces per month. Cash costs for 2010 are expected to be in the region of US$525-575/oz, as per previous guidance.

 

Exploration

 

At the start of the year several gold mineralised systems were known to exist within Avocet's Bélahouro exploration permits in northern Burkina Faso, which surround the Inata mining licence and in total cover an area of 1,660 square kilometres. These include the 16 kilometre long Souma Trend, 12 kilometre long Damba Trend and the prospects at Pali, Filio and Inata North, near to the mine. Early stage exploration work had also identified significant areas of young Saharan sand cover that may conceal additional targets.

 

During the first half of 2010 Avocet conducted a 9,100 kilometre airborne geophysical survey over the entire Bélahouro District in order to map all prospective geological structures and develop an inventory of viable targets to assist in prioritising drill programmes.  The survey was completed in June and interpretation of the results will continue through the rainy season (July and August) with completion by September 2010.  Early results indicate that the mineralised gold bearing system that hosts the Inata deposit is likely to extend in a number of directions.  A 22,000 metre drilling programme was also initiated at the Souma Trend and is nearing completion, which focused on the mineralised prospect of Dynamite, where drilling by previous companies encountered significant intersections.  These initiatives will lead on to a more aggressive exploration programme in Bélahouro in the second half of 2010 through to the first half of 2011, with the objective of developing new open pittable gold resources in the Bélahouro area.

 

Guinea is proving to be another exciting new destination in West Africa for gold companies.  Avocet's most advanced project is the 986 square kilometre Tri-K Block that hosts the Koulékoun and Kodiéran gold prospects in the northeast of the country.  Although only a fraction of the Tri-K Block has been drilled to date, this drilling led to the discovery of a resource of 666,500 ounces of gold in 2008.  During the first half of 2010 work focused on mapping and pitting the untested anomalies with a view to defining targets for a scout drilling programme in the second half of the year. Mapping and sampling also proceeded at Balandougou, a seven kilometre zone of artisanal mining up to 200 metres wide, ahead of a scout drilling programme planned for the second half of the year. At Kankan, trenching and pitting was carried out to evaluate the hard rock source of the 5 kilometre long geochemical anomaly.

 

SOUTH EAST ASIA REGION

 

Penjom - Malaysia

 


3 months ended

31 March

 2010

3 months ended

30 June

 2010

6 months ended

30 June 2010

6 months ended

30 June

2009

12 months ended

31 December

2009

Production statistics






Ore mined (tonnes)

105,000

156,000

638,000

972,000

Waste mined (tonnes)

3,735,000

7,850,000

8,952,000

17,243,000

Ore and waste mined (tonnes)

3,840,000

8,006,000

9,590,000

18,215,000

Ore processed (tonnes)

185,000

372,000

360,000

725,000

Average ore head grade (g/t Au)

2.80

2.50

3.33

3.24

Process recovery rate

83%

81%

 83%

83%

Gold produced (ounces)

13,669

24,130

31,741

62,654

Cash costs (US$/oz)





- mining

482

569

402

416

- processing

218

251

172

181

- royalties and overheads

118

129

106

108

Total cash cost (US$/oz)

818

949

680

705

 

In the first six months of the year Penjom focused on adopting the new resource model and revising the mine schedule to accommodate the waste stripping required to access new ore zones to the west and north east of the main pit. Mining activity in the first half of 2010 involved significant levels of waste clearance required to access ore bodies.  This resulted in lower ore tonnages mined, as well as impacting head grades, as plant throughput was maintained from lower grade stockpile material. Ore tonnes are expected to rise in the second half of 2010 as waste cutbacks and access work is completed and new ore is reached, notably in the Janik area to the west of the main Kalampong pit, although access to the new ore areas will occur later than scheduled.  The better availability of ore in the second half year is expected to allow gold production to increase to an estimated average of 4,500 ounces per month over that period.

 

North Lanut - Indonesia

 

 

3 months ended

31 March

 2010

3 months ended

30 June

 2010

6 months ended

30 June 2010

6 months ended

30 June

2009

12 months ended

31 December

2009

Production statistics






Ore mined (tonnes)

415,000

295,000

710,000

611,000

1,430,000

Waste mined (tonnes)

392,000

428,000

820,000

1,156,000

1,290,000

Ore and waste mined (tonnes)

807,000

723,000

1,530,000

1,767,000

3,720,000

Ore leached (tonnes)

265,000

267,000

532,000

582,000

1,282,000

Average ore head grade (g/t Au)

1.93

1.70

1.82

1.96

1.69

Process recovery rate

69%

77%

72%

63%

67%

Gold produced (ounces)

11,370

11,184

22,554

23,196

46,895

Cash costs (US$/oz)






- mining

330

343

336

269

289

- processing

155

172

163

119

137

- royalties and overheads

150

163

157

107

124

Total cash cost (US$/oz)

635

678

656

495

550

 

Production at North Lanut has remained steady and in line with expectations. Heavy rainfall in the early part of the year affected mine tonnages and delayed leachpad recovery, but operational improvements have mitigated this. Mining is currently from two pits, Rasik and Riska, which allows for greater flexibility in managing ore production. In addition, new leach pad areas are now available. This, combined with the introduction of segregated cells, allows different ore types to be treated separately, increasing recovery levels.  Mining at Rasik is scheduled to reach higher grade areas at depth and gold production is expected to increase quarter on quarter.  Full year production guidance is unchanged at 48,000 ounces. 

 

Exploration

 

Resource development continued at North Lanut and Penjom, with work at Penjom particularly focused on responding to the new MIK resource model announced at the start of the year.  Field exploration during the period at Doup consisted of grid line and ground magnetometer surveys, in advance of a programme of in-fill drilling in the second half aimed at enhancing the grade and increasing the resource to two million ounces averaging over 2 g/t Au.  At Seruyung, work during the first half year focused on trenching and preparation for the upcoming drilling programme of 3,000 metres scheduled to commence in August.  The objective of the drilling programme is to establish a JORC compliant resource for the main silica cap area.

 

Financial results (1) 

 

Revenues were US$92.1 million, an increase of 70% compared with the six months ended 30 September 2009, reflecting an increase in production of 41,450 ounces, primarily from Inata, and a realised gold price of US$1,170/oz compared with US$946/oz. Inata's production in the second quarter meant that the Group's cost of sales of US$73.2 million was also higher than the comparative period but only by 53%, reflecting the fact that Inata's cash costs are lower than Penjom and North Lanut, with the result that total gross margin jumped from US$6.3 million to US$18.9 million, despite increases in Penjom and North Lanut costs.  Profit before tax and exceptional items increased from US$3.4 million to US$11.5 million, principally due to Inata's first time contribution.

 

Exceptional items in the half year amounted to a net loss of US$0.4 million, with a gain associated with the settlement of Merit Mining Corp ("Merit") debenture offset by a loss on disposal of another non-core asset, Avocet's entire interest in Dynasty Gold Corp, and by  the costs of listing on the Oslo Stock Exchange.

 

Total EBITDA(2) in the half year was US$28.7 million, of which West African operations contributed US$21.1 million. The impact of Inata's first time contribution may also be seen in the income statement analysis in note 4 comparing the first quarter results with the second quarter, with Group EBITDA in the second quarter of US$24.6 million amounting to six times the US$4.1 million achieved in the previous quarter. EBITDA in Q3 and Q4 2010 is expected to be similar to Q2.

 

The Company's net debt position was largely unchanged, with gross debt remaining at US$90 million and cash at US$45.3 million, US$1.7 million lower than the start of the year. Cash generated by operations amounted to US$15.2 million, after expending US$8.1 million to establish Inata's initial inventories. Amounts invested in capex totalled US$30.6 million, of which Inata accounted for US$29.1 million while US$4.7 million was invested in exploration of which half was in West Africa.

 

(1)   In view of the change in year end, the financial comparatives provided in this income statement are for the six months ended 30 September 2009, being the published results for the most recent equivalent period

(2)   As defined in the Condensed Consolidated Income Statement.

 

People

 

I would like to thank all of our employees throughout the organisation for their hard work, dedication, and contribution during the period. I am confident that we have the teams in place to take our Company to the next level and I very much look forward to working with them as Avocet becomes a leading gold mining and exploration company.

 

Brett A. Richards

28 July 2010 

 

 

CONDENSED CONSOLIDATED INCOME STATEMENT


note

30 June 2010

           (6 months)

Unaudited

30 September 2009

(6 months)

Unaudited

31 December 2009

(9 months)

Audited



US$000

US$000

US$000






Revenue

4

92,054

54,197

82,945

Cost of sales


(73,183)

(47,879)

(70,802)

Gross profit


18,871

6,318

12,143

Administrative expenses


(2,821)

(2,639)

(2,952)

Share based payments


(3,148)

(518)

(1,337)

Exploration impairment


-

-

(10,486)

Deferred stripping impairment


-

(7,957)

(7,957)

Profit/(loss) from operations


12,902

(4,796)

(10,589)

Profit on disposal of investments

3

1,986

-

-

Finance items





Exchange (losses)/gains


(118)

(205)

119

Finance income


72

478

425

Finance expense


(1,383)

(9)

(510)

Expenses of listing on Oslo Børs

3

(2,363)

-

-

Profit/(loss) before taxation


11,096

(4,532)

(10,555)






Analysed as:





Profit before taxation and exceptional items

2

11,473

3,425

7,888

Exceptional items

3

(377)

(7,957)

(18,443)

Profit/(loss) before taxation


11,096

(4,532)

(10,555)






Taxation


(2,473)

1,468

(2,088)






Profit/(loss) for the period


8,623

(3,064)

(12,643)

Attributable to:





Equity shareholders of the parent company


6,513

(4,105)

(13,032)

Non-controlling interest


2,110

1,041

389



8,623

(3,064)

(12,643)






Earnings/(loss) per share





Basic (cents per share)

5

3.34

              (2.55)

             (7.63)

Diluted (cents per share)

5

3.32

                    (2.55)

                    (7.63)

 

 

EBITDA (1)


28,674

15,585

24,503

(1)   EBITDA represents earnings before exceptional items, interest, tax, depreciation and amortisation. EBITDA is not defined by IFRS but is commonly used as an indication of underlying cash generation.

 

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME








30 June 2010

(6 months)

Unaudited

30 September 2009

(6 months)

Unaudited

31 December 2009

(9 months)

Audited



US$000

US$000

US$000






Profit/(loss) for the financial period


8,623

(3,064)

(12,643)

Exchange differences on translation of foreign operations


-

(1,783)

19

Disposal of other financial assets


841

-

-

Revaluation of other financial assets


(3,063)

4

1,321

Total comprehensive income/(expense) for the period


6,401

(4,843)

(11,303)






Attributable to:





Equity holders of the parent


4,291

(5,884)

(11,692)

Non-controlling interest


2,110

1,041

389



6,401

(4,843)

(11,303)






 

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION







note

30 June 2010

Unaudited

30 September 2009          

Unaudited

31 December 2009

Audited



US$000

US$000

US$000

Non-current assets





Goodwill


11,071

9,899

10,331

Intangible assets

6

22,727

37,437

18,059

Property, plant and equipment

7

294,862

274,774

299,793

Other financial assets


6,183

9,269

9,428

Deferred tax assets


5,084

6,962

5,866



339,927

338,341

343,477

Current assets





Inventories


39,429

19,351

31,266

Trade and other receivables


21,104

16,442

14,899

Cash and cash equivalents


45,347

38,858

47,056



105,880

74,651

93,221

Current liabilities





Trade and other payables


43,050

45,260

45,186

Current tax liabilities


1,119

1,057

2,507



44,169

46,317

47,693

Non-current liabilities





Other financial liabilities

8

90,000

64,462

90,000

Deferred tax liabilities


5,183

2,598

4,625

Other liabilities


18,065

15,869

17,004



113,248

82,929

111,629

Net assets


288,390

283,746

277,376

Equity





Issued share capital


16,004

15,903

15,904

Share premium


144,271

142,778

142,778

Other reserves


13,582

8,157

11,321

Retained earnings


106,661

109,717

101,611

Total equity attributable to the parent


280,518

276,555

271,614

Non-controlling interest


7,872

7,191

5,762

TOTAL EQUITY


288,390

283,746

277,376






 

 

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY


Share capital

Share premium

Other reserves

Retained earnings

Non-controlling interest

Total equity


US$000

US$000

US$000

US$000

US$000

US$000

At 31 March 2009 (Audited)

9,904

53,400

9,556

113,541

191,774

(Loss)/profit for the year

-

-

-

(4,105)

(3,064)

Exchange differences on translation of foreign operations

-

-

(1,783)

-

-

(1,783)

Revaluation of other financial assets

-

-

4

-

-

4

Total comprehensive income for the period

-

-

(1,779)

(4,105)

1,041

(4,843)

Share based payments

-

-

-

518

-

518

Issue of shares

5,999

89,378

-

-

-

95,377

Non-controlling interest acquired as part of Wega Mining acquisition

-

-

-

-

777

777

Losses on issue from treasury shares

-

-

-

(237)

-

(237)

Movements on investments in treasury and own shares

-

-

380

-

-

380

At 30 September 2009 (Unaudited)

15,903

142,778

8,157

109,717

7,191

283,746

(Loss) for the period

-

-

-

(8,927)

(652)

(9,579)

Exchange differences on translation of foreign operations

-

-

1,802

-

-

1,802

Revaluation of other financial assets

-

-

1,317

-

-

1,317

Total comprehensive income for the period

-

-

3,119

(8,927)

(652)

(6,460)

Share based payments

-

-

-

819

-

819

Issue of shares

1

-

-

-

-

1

Adjustment to non-controlling interest

-

-

-

-

(777)

(777)

Gain on issue from treasury shares

-

-

-

2

-

2

Movements on investments in treasury and own shares

-

-

45

-

-

45

At 31 December 2009 (Audited)

15,904

142,778

11,321

101,611

5,762

277,376

Profit for the period

-

-

-

6,513

2,110

8,623

Revaluation of other financial assets

-

-

(3,063)

-

-

(3,063)

Disposal of other financial assets

-

-

841

-

-

841

Total comprehensive income for the period

-

-

(2,222)

6,513

2,110

6,401

Share based payments

-

-

-

448

-

448

Transfer between reserves

-

-

1,569

(1,569)

-

-

Issue of shares

100

1,493

-

-

-

1,593

Loss on issue from treasury shares

-

-

-

(342)

-

(342)

Movement on investments in treasury & own shares

-

-

2,914

-

-

2,914

At 30 June 2010 (Unaudited)

16,004

144,271

13,582

106,661

7,872

288,390

 

CONDENSED CONSOLIDATED CASH FLOW STATEMENT

 


 

 

 

Note

30 June

 2010

 (6 months)

Unaudited

30 September

2009

(6 months)

Unaudited

31 December

2009

 (9 months)

Audited

 



US$000

US$000

US$000

 

Cash flows from operating activities





 

Profit/(loss) for the period


8,623

(3,064)

(12,643)

 

Adjusted for:





 

Depreciation of non-current assets


15,772

6,392

10,617

 

Exploration impairments


-

-

10,486

 

Deferred stripping adjustment


-

6,032

6,032

 

Deferred stripping impairment


-

7,957

7,957

 

Share based payments


3,148

518

1,337

 

Provisions


373

287

2,874

 

Taxation in the income statement


2,473

(1,468)

2,088

 

Non-operating items in the income statement

9

5,050

(264)

(34)

 



35,439

16,390

28,714

 

Movements in working capital





 

Increase in inventory


(8,163)

(1,082)

(12,999)

 

(Increase)/decrease in trade and other receivables


(9,933)

(2,204)

(2,460)

 

Increase/(decrease) in trade and other payables


(2,147)

(547)

3,884

 

Net cash generated by operations


15,196

12,557

17,139

 

Interest received


72

478

425

 

Interest paid


(2,401)

(9)

(510)

 

Income tax paid


790

-

-

 

Net cash generated by operating activities


13,657

13,026

17,054

 

Cash flows from investing activities





 

Payments for property, plant and equipment


(16,314)

(24,262)

(46,847)

 

Inata pre-commercial revenues capitalised

7

21,495

-

-

 

Inata pre-commercial costs

7

(14,296)

-

-

 

Deferred consideration


(983)

(879)

(927)

 

Exploration and evaluation expenses


(4,670)

(5,479)

(8,913)

 

Net cash movement on purchase of subsidiary


-

(21,392)

(21,143)

 

Net cash movement on disposal of subsidiary


-

-

1,095

 

Net cash used in investing activities


(14,768)

(52,012)

(76,735)

 

Cash flows from financing activities





 

Expenses of listing on Oslo Børs


(2,363)

-

-

 

Proceeds from issue of equity shares


1,883

-

-

 

Loans


-

5,000

34,200

 

Net cash generated from financing activities


(480)

5,000

34,200

 

Net cash movement


(1,591)

(33,986)

(25,481)

 

Exchange (losses)/gains


(118)

426

119

 

Total decrease in cash and cash equivalents


(1,709)

(33,560)

(25,362)

 

Cash and cash equivalents at start of the period


47,056

72,418

72,418

 

Cash and cash equivalents at end of the period


45,347

38,858

47,056

 

 

NOTES TO THE FINANCIAL STATEMENTS

 

 

1.       Basis of preparation

 

The condensed consolidated interim financial statements, which are unaudited, have been prepared in accordance with the requirements of International Accounting Standard 34. This condensed interim report does not include all the notes of the type normally included in an annual financial report. Accordingly, this condensed report is to be read in conjunction with the Annual Report for the nine months ended 31 December 2009, which has been prepared in accordance with IFRS's as adopted by the European Union, and any public announcements made by the Group during the interim reporting period.

 

The financial information set out in this interim report does not constitute statutory accounts as defined in Section 435 of the Companies Act 2006. The unaudited condensed interim financial statements for the six months ended 30 June 2010 have been drawn up using accounting policies and presentation expected to be adopted in the Group's full financial statements for the year ending 31 December 2010, which are not expected to be significantly different to those set out in note 1 to the Group's audited financial statements for the nine months ended 31 December 2009.

 

The financial information for the nine months ended 31 December 2009 has been extracted from the statutory accounts for that period. The Company's statutory financial statements for the nine months ended 31 December 2009 have been filed with the Registrar of Companies. The auditor's report on those financial statements was unqualified and did not contain a statement under sections 498(2) or (3) of the Companies Act 2006.

 

In December 2009, the Company changed the financial year end for reporting purposes from 31 March to 31 December. This was undertaken by preparing full financial statements for the nine month period ended 31 December 2009, which were audited and are available on the Company's website. For the purposes of this interim statement, the comparative periods presented are the nine months ended 31 December 2009 and the six months ended 30 September 2009. The results of the Group are not seasonal in nature, and therefore it has been considered appropriate to take exemption from certain provisions of AIM Rule 18 for this interim statement.

 

The interim financial information has not been audited but it has been reviewed under the International Standard on Review Engagements (UK and Ireland) 2410 of the Auditing Practices Board.

 

After review of the Group's operations, the directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. Accordingly, the directors continue to adopt the going concern basis in preparing the unaudited condensed interim financial statements.

 

2.   Profit before tax and exceptional items

 

Profit before tax and exceptional items is calculated as follows:

 

 

 

30 June 2010

(6 months)

Unaudited

30 September 2009

(6 months)

Unaudited

31 December 2009

(9 months)

Audited


US$000

US$000

US$000





Profit/(loss) from operations

12,902

(4,796)

(10,589)

Add back deferred stripping impairment

-

7,957

7,957

Add back exploration impairment

-

-

10,486

Exchange (losses)/gains

(118)

(205)

119

Net finance (expense)/income

(1,311)

469

(85)

Profit before tax and exceptional items

11,473

3,425

7,888

 

3.   Exceptional items

 


30 June 2009

(6 months)Unaudited

30 September 2009

(6 months)

Unaudited

31 December 2009

 (9 months)

Audited


US$000

US$000

US$000





Exploration impairment

-

-

(10,486)

Deferred stripping impairment

-

(7,957)

(7,957)

Profit on redemption of debenture

3,138

-

-

Loss on disposal of other financial assets

(1,152)

-

-

Expenses of listing on Oslo Børs

(2,363)

-

-

Exceptional (loss) before taxation

(377)

(7,957)

(18,443)

Taxation

-

2,069

2,228

Exceptional (loss) after taxation

(377)

(5,888)

(16,215)

Non-controlling interest

-

-

51

Attributable to equity shareholders of the parent

(377)

(5,888)

(16,164)

 

 

Profit on redemption of debenture

 

Profit on disposal arises from the redemption of a debenture held by Wega Mining AS, a wholly-owned subsidiary of Avocet Mining PLC, in Merit Mining Corp ("Merit"). This debenture, along with all remaining assets in Merit, had been fully written down as part of the fair value adjustments on the acquisition of Wega Mining. At the time of the acquisition it was not considered likely that Merit would have the resources to settle the debenture. Following the investment of approximately CA$16 million in Merit by Hong Kong Huakan Investment Co Ltd, the repayment was possible, and the gain has therefore been classified as exceptional.

 

Loss on disposal of other financial assets

 

During the period, Avocet disposed of the shares held in Dynasty Gold Corp. Shares in Dynasty were recorded in the balance sheet at fair value, with movements in fair value recognised in equity, in accordance with IAS39. On the disposal of the shares, accumulated losses previously recognised in equity are transferred to the income statement and recognised in the loss on disposal.

 

Oslo listing costs

 

On 16 June 2010 Avocet announced its successful listing on Oslo Børs. Costs of the listing, which were not directly attributable to new shares issued, are treated as exceptional costs in the period. These included US$1.8 million of Stamp Duty Reserve Tax costs following the transfer of existing Avocet shareholders from UK-based registration system to the Norwegian VPS share registration system.

 

Exploration impairment

 

Following evaluation of the exploration portfolio, the decision was taken in December 2009 to impair US$10.5 million of deferred exploration expenditure on projects that the Company did not believe would become mining projects.

 

Impairment of capitalised deferred stripping cost

 

In September 2009, an impairment of deferred stripping costs previously capitalised was made on the basis that the grades and recoveries of the ore that had been stripped in earlier years proved significantly lower than estimated at the time when the stripping costs were deferred. There are currently no deferred stripping costs recognised in the balance sheet.

 

4.   Quarterly Analysis

The following table shows, for comparison purposes, the consolidated income statement for Q1 and Q2 of 2010 separately. The analysis has neither been audited nor reviewed by the Group auditors.

 

unaudited condensed consolidated income statement - Q1 & Q2 2010

 



Q1 2010

Unaudited

Q2 2010

Unaudited

30 June 2010

(6 months)

Unaudited



US$000

US$000

US$000






Revenue


27,170

64,884

92,054

Cost of sales


(23,933)

(49,250)

(73,183)

Gross profit


3,237

15,634

18,871

Administrative expenses


(1,664)

(1,157)

(2,821)

Share based payments


(1,576)

(1,572)

(3,148)

(Loss)/profit from operations


(3)

12,905

12,902

Net profit on disposal of other financial assets


-

1,986

1,986

Finance items





Exchange gains/(losses)


130

(248)

(118)

Finance income


70

2

72

Finance expense


(1)

(1,382)

(1,383)

Expenses of listing on Oslo Børs


-

(2,363)

(2,363)

Profit before taxation


196

10,900

11,096






Analysed as:





Profit before taxation and exceptional items


196

11,277

11,473

Exceptional items


-

(377)

(377)

(Loss)/profit before taxation


196

10,900

11,096






Taxation


1,108

(3,581)

(2,473)






Profit for the period


1,304

7,319

8,623

Attributable to:





Equity shareholders of the parent company


1,105

5,408

6,513

Non-controlling interest


199

1,911

2,110



1,304

7,319

8,623






EBITDA(1)


4,115

24,559

28,674

(1)     As defined in the Condensed Consolidated Income Statement.

 

5.   Earnings per Share

 

Earnings per share are analysed in the table below, which also shows earnings per share after adjusting for exceptional items.

 


30 June 2010

(6 months)

Unaudited

30 September 2009

(6 months)

Unaudited

31 December 2009

(9 months)

Audited


Shares

Shares

Shares

Weighted average number of shares in issue for the period




- number of shares with voting rights

194,916,302

160,696,958

170,883,476

- effect of share options in issue

1,467,754

125,324

158,123

- total used in calculation of diluted earnings

  per share

196,384,056

160,822,282

171,041,599






US$000

US$000

US$000

Earnings/(loss) per share




Profit/(loss) for the period

8,623

(3,064)

(12,643)

Adjustments:




(Less) non-controlling interest

(2,110)

(1,041)

(389)

Profit/(loss) for period attributable to equity shareholders of the parent

6,513

(4,105)

(13,032)

Earnings/(loss) per share




- basic (cents per share)

3.34

(2.55)

(7.63)

- diluted (cents per share)

                    3.32

(2.55)

(7.63)





Earnings per share before exceptional items




Profit/(loss) for period attributable to equity shareholders of the parent

6,513

(4,105)

(13,032)

Adjustments:




Add back exploration impairment

-

-

10,486

Add back deferred strip impairment

-

7,957

7,957

Less profit on debentures settled

(3,138)

-

-

Add back loss on disposal of other financial assets

1,152

-

-

Add back expenses of listing on Oslo Børs

2,363

-

-

Less tax on deferred strip impairment

-

(2,069)

(2,228)

Less non-controlling interest on exploration impairment

-

-

(51)

Profit for the period attributable to equity shareholders of the parent before exceptionals

6,890

1,783

3,132

Earnings per share




- basic (cents per share)

3.53

1.11

1.83

- diluted (cents per share)

3.51

1.11

1.83

 

6.   Intangible assets

 

Intangible assets represent deferred exploration expenditure.

 

7.   Property,  plant and equipment

 


Mining property and plant

Office equipment


Six months ended

30 June 2010

Malaysia

Indonesia

West Africa

UK

Total


US$000

US$000

US$000

US$000

US$000

Cost






At 1 January 2010

100,006

56,289

233,974

505

390,774

Additions

185

2,862

14,973

20

18,040

Inata pre-commercial revenues

-

-

(21,495)

-

(21,495)

Inata pre-commercial costs

-

-

14,296

-

14,296

At 30 June 2010

100,191

59,151

241,748

525

401,615

Depreciation






At 1 January 2010

60,720

30,061

-

200

90,981

Charge for the year

2,731

4,388

8,593

60

15,772

Disposals

-

-

-

-

-

As at 30 June 2010

63,451

34,449

8,593

260

106,753

Net Book Value at

30 June 2010

36,740

24,702

233,155

265

294,862

At 31 December 2009

39,286

26,228

233,974

305

299,793

 

All costs and revenues at Inata between 1 January and 31 March 2010 related to the testing and development phase, prior to the commencement of commercial operations. Therefore, these costs and revenues have been capitalised as part of mining property, plant and equipment. From 1 April 2010, all revenues and operating expenses in respect of mining operations at Inata have been recognised in the income statement.

 

8.   Other Financial liabilities

 

Other financial liabilities of US$90 million include a project finance facility of US$65 million from Macquarie Bank Limited relating to the Inata gold project and a US$25 million corporate facility with Standard Chartered Bank.

 

9.   Non-operating items in the income statement 

 

In arriving at net cash flow from operating activities, the following non-operating items in the income statement have been adjusted for:

 


30 June 2010

30 September 2009

31 December 2009


(6 months)

(6 months)

(9 months)


Unaudited

Unaudited

Unaudited


US$000

US$000

US$000

Expenses of listing on Oslo Børs

2,363

-

-

Exchange losses/(gains)

224

205

(119)

Loss on disposal of other financial asset

1,152

-

-

Finance income

(72)

(478)

(425)

Finance expense

1,383

9

510

Non-operating items in the income statement

5,050

(264)

(34)

 

10. Segmental Reporting

 

For the six months ended

30 June 2010 (Unaudited)

UK

Malaysia

Indonesia

West Africa

TOTAL


US$000

US$000

US$000

US$000

US$000

INCOME STATEMENT












Revenue

-

29,476

25,974

36,604

92,054

Cost of sales

(1,043)

(27,761)

(20,283)

(24,096)

(73,183)

Cash production costs:






- mining

-

(13,732)

(7,584)

(4,585)

(25,901)

- processing

-

(6,040)

(3,691)

(6,580)

(16,311)

- overheads

-

(1,064)

(3,364)

(3,843)

(8,271)

- royalties

-

(2,058)

(157)

(2,747)

(4,962)


-

(22,894)

(14,796)

(17,755)

(55,445)







Changes in inventory

-

(1,548)

896

3,469

2,817

Other cost of sales (1)

(983)

(588)

(1,995)

(1,217)

(4,783)

Depreciation and amortization (2)

(60)

(2,731)

(4,388)

(8,593)

(15,772)

Gross (loss)/profit

(1,043)

1,715

5,691

12,508

18,871

Administrative expenses

(2,821)

-

-

-

(2,821)

Share based payments

(3,148)

-

-

-

(3,148)

(Loss)/profit from operations

(7,012)

1,715

5,691

12,508

12,902

Profit on disposal of investments

1,986

-

-

-

1,986

Net finance items before exceptional

(465)

6

62

(1,032)

(1,429)

Exceptional finance items

(2,363)

-

-

-

(2,363)

(Loss)/profit before taxation

(7,854)

1,721

5,753

11,476

11,096

Analysed as:






Loss/(profit) before tax and exceptional items

(7,477)

1,721

5,753

11,476

11,473

Exceptional items

(377)

-

-

-

(377)

Taxation

(873)

(621)

(979)

-

(2,473)

Loss/(profit) for the period

(8,727)

1,100

4,774

11,476

8,623

Attributable to:






Equity shareholders of parent company

(8,727)

1,100

3,771

10,369

6,513

Non-controlling interest

-

-

1,003

1,107

2,110


(8,727)

1,100

4,774

11,476

8,623

EBITDA(3)

(6,952)

4,446

10,079

21,101

28,674

(1)   Other cost of sales represents costs not directly attributable to production

(2)   Includes amounts in respect of the amortisation of mine closure provisions

(3)   As defined in the Condensed Consolidated Income Statement

 

At 30 June 2010 (Unaudited)

UK

Malaysia

Indonesia

West

Africa

TOTAL


US$000

US$000

US$000

US$000

US$000

STATEMENT OF FINANCIAL POSITION












Non-current assets

11,825

37,331

52,064

238,707

339,927

Inventories

-

10,186

12,224

17,019

39,429

Trade and other receivables

1,526

3,143

7,139

9,296

21,104

Cash and cash equivalents

11,440

5,488

6,181

22,238

45,347

Total assets

24,791

56,148

77,608

287,260

445,807

Current liabilities

(2,440)

(8,280)

(6,738)

(26,711)

(44,169)

Non-current liabilities

(28,635)

(5,733)

(12,112)

(66,768)

(113,248)

Total liabilities

(31,075)

(14,013)

(18,850)

(93,479)

(157,417)

Net assets

(6,284)

42,135

58,758

193,781

288,390







For the six months ended

30 June 2010

UK

Malaysia

Indonesia

West

Africa

TOTAL


US$000

US$000

US$000

US$000

US$000

CASH FLOW STATEMENT












(Loss)/profit for the period

(8,727)

1,100

4,774

11,476

8,623

Adjustments for non-cash/non operating items (1)

8,218

3,377

5,700

9,521

26,816

Movements in working capital

(154)

(2,473)

(881)

(16,735)

(20,243)

Net cash (used in)/generated by operations

(663)

2,004

9,593

4,262

15,196

Net interest (paid)/received

(557)

4

65

(1,841)

(2,329)

Tax paid

-

1,200

(410)

-

790

Purchase of property, plant and equipment

(20)

(185)

(1,136)

(7,774)

(9,115)

Deferred exploration expenditure

(50)

(1,085)

(1,230)

(2,305)

(4,670)

Other cash movements (2)

(4,716)

(7,024)

(7,720)

17,879

(1,581)

Total (decrease)/increase in cash

(6,006)

(5,086)

(838)

10,221

(1,709)

(1)   Adjustments for non-cash and non-operating items include depreciation, share based payments, movement in provisions, taxation in the income statement, and other non-operating items in the income statement.

(2)   Other cash movements include deferred consideration paid, cash flows from financing activities, and exchange losses.

 

For the six months ended

30 September 2009 (Unaudited)

UK

Malaysia

Indonesia

West Africa

TOTAL


US$000

US$000

US$000

US$000

US$000

INCOME STATEMENT












Revenue

-

30,390

23,807

-

54,197

Cost of sales

(1,211)

(31,812)

(14,856)

-

(47,879)

Cash production costs:






- mining

-

(12,597)

(6,607)

-

(19,204)

- processing

-

(5,423)

(3,006)

-

(8,429)

- overheads

-

(1,170)

(2,404)

-

(3,574)

- royalties

-

(2,125)

(170)

-

(2,295)


-

(21,315)

(12,187)

-

(33,502)

Deferred stripping adjustment

-

(6,032)

-

-

(6,032)

Changes in inventory

-

(128)

794

-

666

Other cost of sales (1)

(1,203)

(1,418)

2

-

(2,619)

Depreciation and amortization (2)

(8)

(2,919)

(3,465)

-

(6,392)

Gross (loss)/profit

(1,211)

(1,422)

8,951

-

6,318







Administrative expenses

(2,639)

-

-

-

(2,639)

Share based payments

(518)

-

-

-

(518)

Deferred stripping impairment

-

(7,957)

-

-

(7,957)

(Loss)/profit from operations

(4,368)

(9,379)

8,951

-

(4,796)

Net finance items

356

34

(126)

-

264

(Loss)/profit before taxation

(4,012)

(9,345)

8,825

-

(4,532)

Analysed as:






Loss/(profit) before tax and exceptional items

(4,012)

(1,388)

8,825

-

3,425

Exceptional items

-

(7,957)

-

-

(7,957)

Taxation

1,213

2,098

(1,843)

-

1,468

(Loss)/profit for the period

(2,799)

(7,247)

6,982

-

(3,064)

Attributable to:






Equity shareholders of parent company

(2,799)

(7,247)

5,941

-

(4,105)

Non-controlling interest

-

-

1,041

-

1,041

 

EBITDA (3)

(4,360)

7,529

12,416

-

15,585

(1)   Other cost of sales represents costs not directly related to production

(2)   Includes amounts in respect of the amortisation of mine closures provisions

(3)   As defined in the Condensed Consolidated Income Statement

 

 

For the six months ended

30 September 2009 (Unaudited)

UK

Malaysia

Indonesia

West

Africa

TOTAL


US$000

US$000

US$000

US$000

US$000

STATEMENT OF FINANCIAL POSITION












Non-current assets

29,504

38,241

49,883

220,713

338,341

Inventories

-

9,009

10,340

2

19,351

Trade and other receivables

1,667

1,466

9,727

3,582

16,442

Cash and cash equivalents

15,148

9,205

10,569

3,936

38,858

Total assets

46,319

57,921

80,519

228,233

412,992

Current liabilities

(5,722)

(8,157)

(6,003)

(26,435)

(46,317)

Non-current liabilities

(7,706)

(4,018)

(11,001)

(60,204)

(82,929)

Total liabilities

(13,428)

(12,175)

(17,004)

(86,639)

(129,246)

Net assets

32,891

45,746

63,515

141,594

283,746







For the six months ended

30 September 2009

UK

Malaysia

Indonesia

West

Africa

TOTAL


US$000

US$000

US$000

US$000

US$000

CASH FLOW STATEMENT












Profit for the period

(2,799)

(7,247)

6,982

-

(3,064)

Adjustments for non-cash/non operating items (1)

(1,043)

14,778

5,719

-

19,454

Movements in working capital

(1,422)

(895)

(1,516)

-

(3,833)

Net cash (used in)/generated by operations

(5,264)

6,636

11,185

-

12,557

Net interest received

447

17

5

-

469

Purchase of property, plant and equipment

(9)

(1,216)

(1,809)

(21,228)

(24,262)

Deferred exploration expenditure

(502)

(2,157)

(2,168)

(652)

(5,479)

Other cash movements (2)

(35,357)

(5,129)

(2,175)

25,816

(16,845)

Total (decrease)/increase in cash

(40,685)

(1,849)

5,038

3,936

(33,560)

 

(1)   Adjustments for non-cash items include depreciation, exploration impairment, share based payments, movement in provisions, taxation in the income statement, and non-operating items in the income statement,

(2)   Other cash movements include deferred consideration paid, cash flows from financing activities, and exchange losses.

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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