Accounts for the period ended
FOR IMMEDIATE RELEASE 24 September 2009
Templar Minerals Limited ("Templar" or "the Company")
Report and Accounts for the period ended 30 June 2009
The Company today announces its audited results for the period ended 30 June 2009. The Report and Accounts are being posted to shareholders today, and will be available on the Company's web-site www.templarminerals.com
Chairman's Statement and Operations Review
Brazil
In December 2008, the Company announced that its 100% subsidiary Paranaiba Minerals ltd ("Paranaiba") had been granted for nil consideration an option to earn-in up to 77% interest in the Rio Paranaiba Iron Ore Project, which comprises some 14,000 hectares of mining claims and applications in the Minas Gerais State of Brazil ("The Project").
Paranaiba has the sole and exclusive right and option to earn up to a 77% undivided interest in the Project in consideration for expenditures of up to C$800,000 over a two year period.
An initial 50% interest in the Project ("Phase 1") has already been earned by the Company by incurring a minimum expenditure of C$200,000 within 180 days after completion of an initial review period in January 2009 by the Company of all available project related data. Paranaiba and the Company's joint venture partner are currently completing all related documentation and a definitive exploration agreement.
Following completion of Phase 1, the Company now has the right to increase its interest in the Project by a further 27% (Paranaiba's interest in the Project going from 50% to 77%) by incurring a further minimum expenditures of C$600,000 before 15 January 2011.
The Project represents a new iron ore discovery in the Brazilian State of Minas Gerais. It is located 210km from
the city of Divinopolis, a key manufacturing hub and steel production centre. The Project is 90km on paved road from the township of Patos De Minas and has excellent infrastructure including power and water access.
Initial drilling and exploration results at the 390 square kilometre Rio Paranaiba project in the Brazilian State of Minas Gerais have been encouraging.
The Company's Consultant, Mr L.D.S. Winter, P.Geo. reports that:
The 390 square kilometre Rio Paranaiba Project Area in Minas Gerais, Brazil is within the Tocantins Geotectonic Province of the Brasilia Fold Belt. This area is the type locality for the Araxa, Ibian and Canastra Groups of Neo Proterozoic age and they are now present as three stacked thrust sheets. The Lower Thrust Sheet hosts the Canastra Group metasedimentary sequence which in turn contains the iron-bearing units of interest. The iron-rich unit (or hematite-rich unit) is a hematite-rich phyllite which in turn rests on a quartzite horizon.
The work to date has indicated the presence of hematite-rich sediments over an east-west distance of approximately 40 km, a significant distance, and with thicknesses up to at least 40 m in surface exposures in a newly identified area.
Sampling by the Company at 20 locations,, within the Project area have been analyzed at the SGS Geosol Laboratory in Belo Horizonte. These samples gave iron ("Fe") grades in the range from 17% to over 65% with an average of 43% with low phosphorous grades in the 0.05% range. Thirty-two samples taken by A.L. Fleming averaged 65.2% Fe, 0.07% Phosphorous and <0.01% Sulphur.
A preliminary drilling program has been carried out through late June and July 2009. A number of significant intercepts have already been recorded, with drill hole Number 8 at the Corral da Estrada prospect intersecting a 6 metre interval between 16 metres and 22 metres of hematite-rich sediment . Two further holes at the Perfis prospect, Numbers 4 and 7 have also intersected intervals of hematite-rich sediments. Hole Number 4 has intersected an 8 metre interval between 42 metres and 50 metres and hole Number 7 intersected a 17 metre interval, from 1.5 metres to 18.5 metres, of hematite-rich units. Drilling will continue based on the positive results to date.
Three surface samples also showed enrichment in silver, cobalt, copper and zinc with one sample FRP144 reporting 14.8 parts per million (grams per tonne) of Silver, 0.3% Cobalt, 0.08% Copper and 0.09% Zinc. Further work is planned in this area to ascertain the significance of this anomaly.
Drilling to date has indicated that the iron rich mineralization sits within a structurally complex environment and significant faulting is evident in the areas drilled and appears to be disrupting some of the continuity of the hematite-rich sediments. It is considered that the objective of additional work is to determine the distribution of the iron-rich sediments and to clarify the structural situation.
The iron-rich sediments appear to be distributed over a very large area which is mainly soil, laterite and vegetation covered. To "look through" this cover, an airbourne and ground based magnetometer surveys are being commissioned to cover the high priority areas.
Within the Rio Paranaiba Project area of influence and approximately 60 km north of Rio Paranaiba, Templar Minerals Ltd joint venture partner holds 4 mining concessions covering approximately 80 square km. Within these concessions, a moderately hard hematite-rich sedimentary unit in the order of 25 m thick has been found to outcrop over a strike length of about 3 km.
'The initial results of the exploration program at Rio Parnaiba has confirmed the existence of hematite-rich iron mineralization below surface. The potential strike length of the iron rich mineralization has now been extended to some 40 kilometres and work programmes going forward will attempt to prioritise exploration targets over this significant distance..'
Georgia
In September 2007, Templar Minerals paid US$2 million and issued 25 million shares in the Company in order to acquire from Gatward Limited a 90% interest in a BVI registered company Goldencrest Enterprises Ltd ("Goldencrest") whose main asset was the Adjara Gold and Base Metals Project in Georgia.
The Adjara Gold and Base Metals Project, is a large and relatively unexplored brown- and greenfield target in an area of historical gold and base metal mining. The project contains numerous exploration adits and a historical sampling database, and incorporates a total licence area of 100.4 square kilometres in a large unexplored region in the Caucasus Mountains of south west Georgia.
Initial exploration sample results at Adjaria returned very encouraging gold values and together with the substantial body of information available from the Soviet era it was clear that the Project had the potential to become a significant minable gold resource.
Results obtained to date at the Vaio deposit (one of nine target orebodies) had been especially encouraging and gave us confidence in the reliability of the Non-JORC compliant Russian resource estimates derived from work previously undertaken, which include significant reserves of gold, silver, lead, copper and zinc.
In August 2008, the Company suspended operations at the Adjara Project due to the conflict between Russia and Georgia.
In November 2008, following careful consideration of the recent instability in Georgia and the current economic conditions both in Georgia and globally, the Directors decided that continuation of the Adjara Project would not represent best use of available Company resources. The Directors accordingly fully provided for all of the acquisition and development costs capitalised on the Adjara Project which amounted to approximately $7.3 million.
Arrangements to dispose of the Company's interest in the Adjara Project were made in late November 2008, which resulted in the Company agreeing to sell its 90% holding in Goldencrest to the Georgian based minority shareholders. The Company has thereby now fully relinquished all rights relating to Goldencrest and the Adjara Project.
Fiji
As previously announced in the Company's 2008 Annual report, the Company acquired in October 2007, 285 million shares in Vatukoula Gold Mines plc ("VGM"). Subsequently in March 2008, the Company entered into arrangements to acquire a further 143 million shares in VGM from Viso Gero Global Inc ("VGG"). These arrangements to acquire the additional shares were not completed and negotiations with VGG resulted in the Company not settling the arrangement to acquire the additional shares by 31 March 2009. Under a Settlement Agreement between the Company and VGG, the Company agreed to transfer 200 million shares of its holding in VGM to VGG as full and final settlement of all outstanding obligations between the two parties. In addition the Company also made payments to VGG for deferment costs of US$1.64 million. This settlement agreed by Company of approximately $3.6 million avoided a total claim of approximately $15 million as per the original agreement with VGG.
The Company continues to maintain a holding of 60.125 million shares in VGM. The Directors are pleased with the progress being made at the Vatukoula Gold Mine. The mine is positioning itself to achieve improved gold production rates over the coming year. In addition the recommencement of exploration drilling at the mine and surrounding areas will focus on increasing reserves and resources for VGM.
Outlook
A commitment to growth remains at the heart of our strategy to create value and your board continues to review potential investment and acquisition opportunities. As no substantial acquisition (as determined under the AIM
Rules for companies) has been made since Templar Minerals was admitted to AIM, your board will seek consent of the shareholders at the next annual general meeting for the renewal of its investment strategy as set out in its admission document.
Enquiries:
Templar Minerals Limited
David Lenigas
Tel: +44 (0)20 7016 5100
Beaumont Cornish Limited
Roland Cornish/Rosalind Hill Abrahams
Tel: +44(0)20 7628 3396
Competent Person
The technical information contained in this document has been reviewed and approved by Mr Stewart Winter, Consulting Geologist, B.A.Sc., M.Sc., P.Geo. He is the Qualified Person who has reviewed the field data. Mr. Winter has worked for over 50 years as a geologist and has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking, to qualify as a Qualified Person for the purposes of this document.
|
Group Income Statement |
|||||
|
|
|
Discontinuing Operations |
Continuing Operations |
Total for the period |
Period |
|
|
Notes |
$ 000's |
$ 000's |
$ 000's |
$ 000's |
|
|
|
|
|
|
|
|
Revenue |
|
- |
- |
- |
- |
|
|
|
|
|
|
|
|
Administrative expenses |
|
- |
(534) |
(534) |
(1,776) |
|
Impairment charge |
12 |
(7,314) |
- |
(7,314) |
- |
|
Share of associates results |
14 |
- |
- |
- |
(232) |
|
Share options expensed |
8,20 |
- |
20 |
20 |
(487) |
|
Group operating loss |
3 |
(7,314) |
(514) |
(7,828) |
(2,495) |
|
|
|
|
|
|
|
|
Loss on sale of investments |
|
- |
(3,611) |
(3,611) |
- |
|
Settlement cost - VGG |
5 |
- |
(3,602) |
(3,602) |
- |
|
Interest receivable |
10 |
- |
20 |
20 |
541 |
|
Loss before taxation |
2 |
(7,314) |
(7,707) |
(15,021) |
(1,954) |
|
|
|
|
|
|
|
|
Income tax expense |
6 |
|
|
- |
- |
|
Loss for the financial period |
|
|
|
(15,021) |
(1,954) |
|
|
|
|
|
|
|
|
Retained loss for the period attributable to: |
|
|
|
|
|
|
Equity holders of the parent Company |
|
|
|
(15,021) |
(1,896) |
|
Minority interest |
|
|
|
- |
(58) |
|
|
|
|
|
|
|
|
Loss per share (US cents) |
|
|
|
|
|
|
Basic |
9 |
|
|
(3.02) |
(0.46) |
|
Diluted |
9 |
|
|
(3.02) |
(0.46) |
|
Company Income Statement |
|||
|
|
|
Period |
Period |
|
|
Notes |
$ 000's |
$ 000's |
|
|
|
|
|
|
Revenue |
|
- |
- |
|
|
|
|
|
|
Administrative expenses |
|
(534) |
(1,262) |
|
Impairment charge |
12 |
(6,523) |
- |
|
Share of associates results |
14 |
- |
(232) |
|
Share options expensed |
8, 20 |
20 |
(487) |
|
Group operating loss |
3 |
(7,037) |
(1,981) |
|
|
|
|
|
|
Loss on sale of investments |
|
(3,611) |
- |
|
Settlement cost - VGG |
5 |
(3,602) |
- |
|
Interest receivable |
10 |
20 |
608 |
|
Loss before taxation |
2 |
(14,230) |
(1,373) |
|
|
|
|
|
|
Income tax expense |
6 |
- |
- |
|
Loss for the financial period |
|
(14,230) |
(1,373) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Group Balance Sheet |
||||||
|
|
|
30 June 2009 |
31 March 2008 |
|||
|
|
Note |
$ 000's |
$ 000's |
$ 000's |
$ 000's |
|
|
ASSETS |
|
|
|
|
|
|
|
Non-current assets |
|
|
|
|
|
|
|
Intangible assets |
11 |
699 |
|
5,242 |
|
|
|
Tangible assets |
13 |
- |
|
77 |
|
|
|
Interest in associates |
14 |
- |
|
8,900 |
|
|
|
Total non-current assets |
|
|
699 |
|
14,219 |
|
|
|
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
|
Trade and other receivables |
17 |
111 |
|
1,805 |
|
|
|
Available for sale investments |
16 |
993 |
|
- |
|
|
|
Cash and cash equivalents |
|
487 |
|
2,325 |
|
|
|
Total current assets |
|
|
1,591 |
|
4,130 |
|
|
TOTAL ASSETS |
|
|
2,290 |
|
18,349 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
|
Trade and other payables |
18 |
(57) |
|
(298) |
|
|
|
TOTAL LIABILITIES |
|
|
(57) |
|
(298) |
|
|
NET ASSETS |
|
|
2,233 |
|
18,051 |
|
|
|
|
|
|
|
|
|
|
EQUITY |
|
|
|
|
|
|
|
Ordinary shares |
19 |
- |
|
- |
|
|
|
Share premium |
|
18,024 |
|
19,913 |
|
|
|
Share based payments reserve |
20 |
381 |
|
484 |
|
|
|
Available for sale investment reserve |
|
(566) |
|
- |
|
|
|
Foreign exchange reserve |
|
1,311 |
|
(50) |
|
|
|
Retained earnings |
|
(16,917) |
|
(1,896) |
|
|
|
EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT |
|
|
2,233 |
|
18,451 |
|
|
Minority interest |
|
|
- |
|
(400) |
|
|
TOTAL EQUITY |
|
|
2,233 |
|
18,051 |
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|||||
|
|
|
|||||
|
|
|
|||||
|
Company Balance Sheet |
|||||
|
|
|
30 June 2009 |
31 March 2008 |
||
|
|
Notes |
$ 000's |
$ 000's |
$ 000's |
$ 000's |
|
ASSETS |
|
|
|
|
|
|
Non-current assets |
|
|
|
|
|
|
Investment in subsidiaries |
15 |
3 |
|
2 |
|
|
Interest in associates |
14 |
- |
|
8,900 |
|
|
Trade and other receivables |
17 |
699 |
|
6,529 |
|
|
Total non-current assets |
|
|
702 |
|
15,431 |
|
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
Trade and other receivables |
17 |
111 |
|
1,604 |
|
|
Available for sale investments |
16 |
993 |
|
- |
|
|
Cash and cash equivalents |
|
487 |
|
2,247 |
|
|
Total Current Assets |
|
|
1,591 |
|
3,851 |
|
TOTAL ASSETS |
|
|
2,293 |
|
19,282 |
|
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
|
Current Liabilities |
|
|
|
|
|
|
Trade and other payables |
18 |
(57) |
|
(251) |
|
|
TOTAL LIABILITIES |
|
|
(57) |
|
(251) |
|
NET ASSETS |
|
|
2,236 |
|
19,031 |
|
|
|
|
|
|
|
|
EQUITY |
|
|
|
|
|
|
Ordinary shares |
19 |
- |
|
- |
|
|
Share premium |
|
18,024 |
|
19,913 |
|
|
Share based payments reserve |
20 |
381 |
|
484 |
|
|
Available for sale investment reserve |
|
(566) |
|
- |
|
|
Foreign exchange reserve |
|
- |
|
7 |
|
|
Retained earnings |
|
(15,603) |
|
(1,373) |
|
|
|
|
|
|
|
|
|
TOTAL EQUITY |
|
|
2,236 |
|
19,031 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Group Statement of Changes in Equity
for the period ended 30 June 2009 |
||||||||||
|
|
||||||||||
|
|
Called up share capital
|
Share premium reserve
|
Available for sale investment reserve
|
Foreign currency translation reserve
|
Share based payment reserve
|
Retained earnings
|
Total equity
|
Minority interest
|
Total equity
|
|
|
Group
|
$ 000's
|
$ 000's
|
$ 000's
|
$ 000's
|
$ 000's
|
$ 000's
|
$ 000's
|
$ 000's
|
$ 000's
|
|
|
As at 2 April 2007
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|
|
|
Loss for the period
|
-
|
-
|
-
|
-
|
-
|
(1,896)
|
(1,896)
|
(58)
|
(1,954)
|
|
|
Currency translation differences
|
-
|
-
|
-
|
(50)
|
-
|
-
|
(50)
|
-
|
(50)
|
|
|
Total recognised income and expense
|
-
|
-
|
-
|
(50)
|
-
|
(1,896)
|
(1,946)
|
(58)
|
(2,004)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share capital issued
|
-
|
21,102
|
-
|
-
|
-
|
-
|
21,102
|
-
|
21,102
|
|
|
Cost of share issue
|
-
|
(1,189)
|
-
|
-
|
-
|
-
|
(1,189)
|
-
|
(1,189)
|
|
|
Acquisition of subsidiary
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(342)
|
(342)
|
|
|
Share based payments
|
-
|
-
|
-
|
-
|
484
|
-
|
484
|
-
|
484
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As at 31 March 2008
|
-
|
19,913
|
-
|
(50)
|
484
|
(1,896)
|
18,451
|
(400)
|
18,051
|
|
|
Loss for the period
|
-
|
-
|
-
|
-
|
-
|
(15,021)
|
(15,021)
|
-
|
(15,021)
|
|
|
Currency translation differences
|
-
|
-
|
-
|
1,361
|
-
|
-
|
1,361
|
-
|
1,361
|
|
|
Total recognised income and expense
|
-
|
-
|
-
|
1,361
|
-
|
(15,021)
|
(13,660)
|
-
|
(13,660)
|
|
|
Loss on market value of available for sale investments
|
-
|
-
|
(566)
|
-
|
-
|
-
|
(566)
|
-
|
(566)
|
|
|
Share capital issued
|
-
|
1,686
|
-
|
-
|
-
|
-
|
1,686
|
-
|
1,686
|
|
|
Cost of share issue
|
-
|
(126)
|
-
|
-
|
-
|
-
|
(126)
|
-
|
(126)
|
|
|
Disposal of subsidiary
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
400
|
400
|
|
|
Share based payments
|
-
|
-
|
-
|
-
|
(20)
|
-
|
(20)
|
-
|
(20)
|
|
|
Currency translation differences
|
-
|
(3,449)
|
-
|
-
|
(83)
|
-
|
(3,532)
|
-
|
(3,532)
|
|
|
As at 30 June 2009
|
-
|
18,024
|
(566)
|
1,311
|
381
|
(16,917)
|
2,233
|
-
|
2,233
|
|
|
Company Statement of Changes in Equity continued |
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
Called up share capital |
Share premium reserve |
Available for sale investment reserve |
Foreign exchange reserve |
Share based payment reserve |
Retained earnings |
Total equity |
|
|
|
Company |
$ 000's |
$ 000's |
$ 000's |
$ 000's |
$ 000's |
$ 000's |
$ 000's |
|
|
|
As at 2 April 2007 |
- |
- |
- |
- |
- |
- |
- |
|
|
|
Loss for the year |
- |
- |
- |
- |
- |
(1,373) |
(1,373) |
|
|
|
Currency translation differences |
- |
- |
- |
7 |
- |
- |
7 |
|
|
|
Total recognised income and expense |
- |
- |
- |
7 |
- |
(1,373) |
(1,366) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share capital issued |
- |
21,102 |
- |
- |
- |
- |
21,102 |
|
|
|
Cost of share issue |
- |
(1,189) |
- |
- |
- |
- |
(1,189) |
|
|
|
Share based payments |
- |
- |
- |
- |
484 |
- |
484 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As at 31 March 2008 |
- |
19,913 |
- |
7 |
484 |
(1,373) |
19,031 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss for the period |
- |
- |
- |
- |
- |
(14,230) |
(14,230) |
|
|
|
Currency translation differences |
- |
- |
- |
(7) |
- |
- |
(7) |
|
|
|
Total recognised income and expense |
- |
- |
- |
(7) |
- |
(14,230) |
(14,237) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss on market value of available for sale investments |
- |
- |
(566) |
- |
- |
- |
(566) |
|
|
|
Share capital issued |
- |
1,686 |
- |
- |
- |
- |
1,686 |
|
|
|
Cost of share issue |
- |
(126) |
- |
- |
- |
- |
(126) |
|
|
|
Share based payments |
- |
- |
- |
- |
(20) |
- |
(20) |
|
|
|
Currency translation differences |
|
(3,449) |
- |
- |
(83) |
- |
(3,532) |
|
|
|
As at 30 June 2009 |
- |
18,024 |
(566) |
- |
381 |
(15,603) |
2,236 |
|
|
|
Group Cash Flow Statement |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
For the period ended |
For the period ended |
|
|
Notes |
|
$ 000's |
|
Cash flows from operating activities |
|
|
|
|
Operating loss |
|
(7,828) |
(2,495) |
|
Decrease / (increase) in trade and other receivables |
|
1,694 |
(1,805) |
|
(Decrease) / increase in trade and other payables |
|
(241) |
298 |
|
Foreign exchange translation |
|
(88) |
(22) |
|
Share of associates results |
|
- |
232 |
|
Share options expensed |
|
(20) |
487 |
|
Impairment charge |
|
7,314 |
- |
|
Depreciation |
|
- |
36 |
|
Net cash inflow/(outflow) from operating activities |
|
831 |
(3,269) |
|
|
|
|
|
|
Cash flows from investing activities |
|
|
|
|
Interest received |
|
20 |
541 |
|
Investment in associate |
|
- |
(9,132) |
|
Payments to acquire intangible assets |
|
(2,771) |
(2,971) |
|
Payments to acquire tangible assets |
|
- |
(113) |
|
Payments to VGG |
|
(1,644) |
- |
|
Proceeds from sale of investments |
|
370 |
- |
|
Net cash outflow from investing activities |
|
(4,025) |
(11,675) |
|
|
|
|
|
|
Acquisitions and disposals |
|
|
|
|
Payments to acquire subsidiaries |
|
- |
(2) |
|
Net cash outflow from acquisitions and disposals |
|
- |
(2) |
|
|
|
|
|
|
Cash flows from financing activities |
|
|
|
|
Issue of ordinary share capital |
|
1,686 |
18,430 |
|
Share issue costs |
|
(126) |
(1,159) |
|
Net cash inflow from financing activities |
|
1,560 |
17,271 |
|
|
|
|
|
|
Net (decrease) / increase in cash and cash equivalents |
|
(1,634) |
2,325 |
|
Foreign exchange differences on translation |
|
(204) |
- |
|
Cash and cash equivalents at beginning of period |
|
2,325 |
- |
|
Cash and cash equivalents at end of period |
21 |
487 |
2,325 |
|
Company Cash Flow Statement |
||||
|
|
|
|
|
|
|
|
|
For the period ended |
For the period ended |
|
|
|
Notes |
|
$ 000's |
|
|
Cash flows from operating activities |
|
|
|
|
|
Operating loss |
|
(7,037) |
(1,981) |
|
|
Decrease / (increase) in trade and other receivables |
|
1,493 |
(1,604) |
|
|
(Decrease) / increase in trade and other payables |
|
(194) |
251 |
|
|
Foreign exchange translation |
|
(88) |
- |
|
|
Share of associates results |
|
- |
232 |
|
|
Share options expensed |
|
(20) |
487 |
|
|
Impairment charge |
|
6,523 |
- |
|
|
Net cash inflow/(outflow) from operating activities |
|
677 |
(2,615) |
|
|
|
|
|
|
|
|
Cash flows from investing activities |
|
|
|
|
|
Interest received |
|
20 |
608 |
|
|
Investment in associate |
|
- |
(9,132) |
|
|
Loans to subsidiaries |
|
(2,771) |
(3,883) |
|
|
Payments to VGG |
|
(1,644) |
- |
|
|
Proceeds from sale of investments |
|
370 |
- |
|
|
Net cash outflow from investing activities |
|
(4,025) |
(12,407) |
|
|
|
|
|
|
|
|
Acquisitions and disposals |
|
|
|
|
|
Payments to acquire subsidiaries |
|
(1) |
(2) |
|
|
Net cash outflow from acquisitions and disposals |
|
(1) |
(2) |
|
|
|
|
|
|
|
|
Cash flows from financing activities |
|
|
|
|
|
Issue of ordinary share capital |
|
1,686 |
18,430 |
|
|
Share issue costs |
|
(126) |
(1,159) |
|
|
Net cash inflow from financing activities |
|
1,560 |
17,271 |
|
|
|
|
|
|
|
|
Net increase in cash and cash equivalents |
|
(1,789) |
2,247 |
|
|
Foreign exchange differences on translation |
|
29 |
- |
|
|
Cash and cash equivalents at beginning of period |
|
2,247 |
- |
|
|
Cash and cash equivalents at end of period |
21 |
487 |
2,247 |
|
|
Notes to the Financial Statements |
|
|
|
|
|
|
|
|
|
2 |
Revenue and segmental analysis |
|||||
|
|
The Group has not commenced production and therefore recorded no revenue. |
|||||
|
|
|
|
|
|
|
|
|
|
The analysis of the operating loss before taxation and the net assets employed by geographical segment of operations is shown below; |
|||||
|
|
|
|
|
|
|
|
|
|
By geographical area |
|
|
|
|
|
|
|
2009 |
|
|
UK/BVI |
Georgia |
Total |
|
|
|
|
|
$ 000's |
$ 000's |
$ 000's |
|
|
Result |
|
|
|
|
|
|
|
Operating loss |
(514) |
(7,314) |
(7,828) |
||
|
|
Loss on sale of investments |
(3,611) |
- |
(3,611) |
||
|
|
Settlement cost - VGG |
(3,602) |
- |
(3,602) |
||
|
|
Investment revenue |
20 |
- |
20 |
||
|
|
Loss before & after taxation |
|
|
(15,021) |
||
|
|
|
|
|
|
|
|
|
|
Other information |
|
|
|
|
|
|
|
Depreciation and impairment |
- |
(7,314) |
(7,314) |
||
|
|
Capital additions |
699 |
2,072 |
2,771 |
||
|
|
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
Segment assets |
1,692 |
- |
1,692 |
||
|
|
Financial assets |
111 |
- |
111 |
||
|
|
Cash |
|
|
487 |
||
|
|
Consolidated total assets |
|
|
2,290 |
||
|
|
Liabilities |
|
|
|
|
|
|
|
Segment liabilities |
- |
- |
- |
||
|
|
Financial liabilities |
(57) |
- |
(57) |
||
|
|
Consolidated total liabilities |
|
|
(57) |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2008 |
|
|
UK/BVI |
Georgia |
Total |
|
|
|
|
|
$ 000's |
$ 000's |
$ 000's |
|
|
Result |
|
|
|
|
|
|
|
Operating loss |
(1,983) |
(512) |
(2,495) |
||
|
|
Investment revenue |
541 |
- |
541 |
||
|
|
Loss before & after taxation |
|
|
(1,954) |
||
|
|
|
|
|
|
|
|
|
|
Other information |
|
|
|
|
|
|
|
Depreciation and impairment |
- |
36 |
36 |
||
|
|
Capital additions |
- |
5,355 |
5,355 |
||
|
|
|
|
|
|
||
|
|
Assets |
|
|
|
|
|
|
|
Segment assets |
8,900 |
5,319 |
14,219 |
||
|
|
Financial assets |
1,604 |
201 |
1,805 |
||
|
|
Cash |
|
|
2,325 |
||
|
|
Consolidated total assets |
|
|
18,349 |
||
|
|
Liabilities |
|
|
|
|
|
|
|
Segment liabilities |
- |
- |
- |
||
|
|
Financial liabilities |
(252) |
(46) |
(298) |
||
|
|
Consolidated total liabilities |
|
|
(298) |
||
|
|
||||||
|
|
||||||
|
|
|
|
|
|
|
|
|
3 |
Operating loss |
|||||
|
|
|
|
|
|
2009 |
2008 |
|
|
Operating loss is arrived at after charging: |
|
$ 000's |
$ 000's |
||
|
|
|
|
|
|
|
|
|
|
Auditors' remuneration - audit * |
33 |
84 |
|||
|
|
Auditors' remuneration - non audit services (accounting advice) |
- |
6 |
|||
|
|
Directors' emoluments - fees and salaries |
122 |
354 |
|||
|
|
Directors' emoluments - share based payments |
46 |
475 |
|||
|
|
Foreign exchange gain |
(88) |
(22) |
|||
|
|
Depreciation |
- |
36 |
|||
|
|
|
|
|
|
|
|
|
|
*Auditors remuneration for 2008 for audit services above includes $24,000 charges by PWC (Georgia), relating to the audit of the subsidiary companies. |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4 |
Employee information |
|||||
|
|
|
|
|
|
2009 |
2008 |
|
|
Staff Costs comprised: |
$ 000's |
$ 000's |
|||
|
|
Wages and salaries |
- |
461 |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number |
Number |
|
|
Administration |
- |
5 |
|||
|
|
|
|
|
|
|
|
|
5 |
Viso Gero Global Inc ("VGG") Settlement |
|||||
|
|
In March 2008, the Company had entered into arrangements to acquire 143 million shares in Vatukoula Gold Mines plc ("VGM") from VGG. These arrangements to acquire the shares were not completed and negotiations with VGG resulted in the Company not settling the arrangement to acquire the additional shares by 31 March 2009. Under a Settlement Agreement between the Company and VGG, the Company agreed to transfer 200 million shares from its holding in VGM to VGG as full and final settlement of all outstanding obligations between the two parties. In addition the Company also made payments to VGG for deferment costs of US $1.64million |
|||||
|
|
|
|||||
|
|
The settlement agreed by the Company of $3.6 million below avoided a total claim of approximately $15 million as per the original agreement with VGG. |
|||||
|
|
|
|||||
|
|
|
$ 000's |
||||
|
|
Transfer of 200 million VGM shares at market value |
1,957 |
||||
|
|
Payment of Deferment costs |
1,645 |
||||
|
|
Total Settlement |
3,602 |
||||
|
|
|
|||||
|
6 |
Taxation |
|||||
|
|
|
|
|
|
2009 |
2008 |
|
|
Analysis of charge in period |
$ 000's |
$ 000's |
|||
|
|
Tax on ordinary activities |
- |
- |
|||
|
|
|
|
|
|
|
|
|
|
No taxation has been provided due to losses in the year. |
|||||
|
|
|
|
|
|
|
|
|
|
The British Virgin Islands under the IBC imposes no corporate taxes or capital gains. However the Company as a group may be liable for taxes in the jurisdictions where it is developing mining properties. |
|||||
|
|
|
|
|
|
|
|
|
|
No deferred tax asset has been recognised because there is insufficient evidence of the timing of suitable future profits against which they can be recovered. |
|||||
|
|
|
|
|
|
|
|
|
7 |
Dividends |
|||||
|
|
No dividends were paid or proposed by the Directors. |
|||||
|
|
||||||
|
|
||||||
|
|
|
|||||
|
8 |
Directors' emoluments |
|||||
|
|
|
|
|
|
2009 |
2008 |
|
|
|
|
|
|
$ 000's |
$ 000's |
|
|
Directors' remuneration |
168 |
829 |
|||
|
|
|
|
|
|
|
|
|
|
2009 |
|
Directors Fees |
Consultancy Fees |
Shares/ |
Total |
|
|
|
|
|
|
Options |
|
|
|
|
|
$ 000's |
$ 000's |
$ 000's |
$ 000's |
|
|
Executive Directors |
|
|
|
|
|
|
|
David Lenigas |
|
67 |
- |
- |
67 |
|
|
Charles Wood |
|
17 |
- |
23 |
40 |
|
|
Gordon Cassidy* |
|
7 |
- |
- |
7 |
|
|
Paul Courtage (2)* |
|
7 |
- |
- |
7 |
|
|
|
|
|
|
|
|
|
|
Non-Executive Directors |
|
|
|
|
|
|
|
Alastair Clayton |
|
17 |
- |
23 |
40 |
|
|
Neil Herbert (3)* |
|
- |
- |
- |
- |
|
|
John Stalker (1)* |
|
7 |
- |
- |
7 |
|
|
Graham Mascall * |
|
- |
- |
- |
- |
|
|
|
|
122 |
- |
46 |
168 |
|
|
|
|
|
|
|
|
|
|
(1): Consulting services provided by Promaco Ltd. In addition $78,000 was paid to this company which was capitalised as exploration costs. |
|||||
|
|
|
|
|
|
|
|
|
|
(2) Consulting services provided by Paul Courtage. In addition $51,000 was paid to Mr Courtnage which was capitalised as exploration costs. |
|||||
|
|
|
|||||
|
|
(3) Consulting services for $2,000 was paid to Mr Neil Herbert during the period which was capitalised as exploration costs. |
|||||
|
|
|
|||||
|
|
(*) These Directors were not employed during the full financial period. |
|||||
|
|
No pension benefits are provided for any Director. |
|||||
|
|
|
|
|
|
|
|
|
|
2008 |
|
Directors Fees |
Consultancy Fees |
Shares/ |
Total |
|
|
|
|
|
|
Options |
|
|
|
|
|
$ 000's |
$ 000's |
$ 000's |
$ 000's |
|
|
Executive Directors |
|
|
|
|
|
|
|
David Lenigas |
|
20 |
- |
72 |
92 |
|
|
Gordon Cassidy (#) |
|
8 |
5 |
7 |
20 |
|
|
Paul Courtage (#) |
|
28 |
32 |
7 |
67 |
|
|
|
|||||
|
|
Non-Executive Directors |
|
|
|
|
|
|
|
Neil Herbert |
|
20 |
68 |
117 |
205 |
|
|
John Stalker (*) |
|
20 |
127 |
117 |
264 |
|
|
Graham Mascall |
|
20 |
- |
83 |
103 |
|
|
Guy Elliott (#) |
|
6 |
- |
72 |
78 |
|
|
|
|
122 |
232 |
475 |
829 |
|
|
|
|
|
|
|
|
|
|
(*): Consulting services provided by Promaco Ltd. |
|||||
|
|
|
|
|
|
|
|
|
|
(#): These Directors were not employed during the full financial year. |
|||||
|
|
No pension benefits are provided for any Director. |
|||||
|
|
||||||
|
|
||||||
|
|
|
|||||
|
9 |
Loss per share |
|||||
|
|
The Loss for the period attributed to shareholders is $15.021 million (2008:$1.896 million). |
|||||
|
|
|
|||||
|
|
This is divided by the weighted average number of Ordinary shares outstanding calculated to be 496.5 million (2008: 409.3 million) to give a basic loss per share of 3.02 cents (2008: 0.46 cents). |
|||||
|
|
|
|||||
|
|
As inclusion of the potential Ordinary shares would result in a decrease in the loss per share they are considered to be anti-dilutive, as such, a diluted earnings per share is not included. |
|||||
|
|
|
|
|
|
|
|
|
10 |
Finance revenue |
|||||
|
|
|
|
|
|
2009 |
2008 |
|
|
|
|
|
|
$ 000's |
$ 000's |
|
|
Bank interest receivable |
|
|
|
20 |
541 |
|
|
|
|
|
|
|
|
|
11 |
Intangible assets |
|||||
|
|
Group |
|
|
|
|
$ 000's |
|
|
|
|
|
|
|
|
|
|
Cost |
|
|
|
|
|
|
|
At 1 April 2008 |
|
|
|
|
5,242 |
|
|
Additions |
|
|
|
|
2,771 |
|
|
Disposal |
|
|
|
|
(7,314) |
|
|
As at 30 June 2009 |
|
|
|
|
699 |
|
|
|
|
|
|
|
|
|
|
Impairment |
|
|
|
|
|
|
|
At 1 April 2008 |
|
|
|
|
- |
|
|
Impairment charge |
|
|
|
|
7,314 |
|
|
Elimination on disposal |
|
|
|
|
(7,314) |
|
|
At 30 June 2009 |
|
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
Net book value |
|
|
|
|
|
|
|
At 31 March 2008 |
|
|
|
|
5,242 |
|
|
At 30 June 2009 |
|
|
|
|
699 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2009 |
2008 |
|
|
The cost is analysed as follows; |
|
|
|
|
|
|
|
|
|
|
|
$ 000's |
$ 000's |
|
|
Deferred exploration expenditure - Georgia |
|
|
- |
236 |
|
|
|
Mining licences - Georgia |
|
|
|
- |
5,006 |
|
|
Deferred exploration expenditure - Brazil |
|
|
699 |
- |
|
|
|
|
|
|
|
699 |
5,242 |
|
|
Impairment Review |
|
|
|
|
|
|
|
At 30 June 2009, the Directors have carried out an impairment review and concluded no further impairment provision is currently required. |
|||||
|
|
||||||
|
|
||||||
|
|
|
|
|
|
|
|
|
12 |
Impairment charge - Georgia Project |
|||||
|
|
During the period, the Directors impaired the value of the Group's investment in the Adjara Project in Georgia which was held by Goldencrest Enterprises Ltd, a BVI registered company owned 90% by the Group. The Adjara Project covered a licence area of approximately 104km2 in the Caucasus Mountains of south west Georgia, encompassing several known mineralised polymetallic vein occurrences identified and developed during the Soviet era. While encouraging results were obtained during recent exploration phase work, all work on the Adjara Project was suspended in August 2008 due to the conflict between Russia and Georgia. Following careful consideration of the recent instability in Georgia and current economic conditions both in Georgia and globally, the Directors decided in November 2008 that continuation of the Adjara Project would not represent best use of available Company resources. The Directors accordingly fully provided for all of the acquisition and development costs capitalised on the Adjara Project which amounted to approximately $7.3 million. |
|||||
|
|
|
|||||
|
13 |
Tangible assets |
|||||
|
|
Group |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property, plant & equipment |
Total |
|
|
|
|
|
|
$ 000's |
$ 000's |
|
|
Cost |
|
|
|
|
|
|
|
As at 1 April 2008 |
|
|
|
113 |
113 |
|
|
Additions |
|
|
|
- |
- |
|
|
Disposals |
|
|
|
(113) |
(113) |
|
|
As at 30 June 2009 |
|
|
|
- |
- |
|
|
|
|
|
|
|
|
|
|
Depreciation and Impairment |
|
|
|
|
|
|
|
As at 1 April 2008 |
|
|
|
36 |
36 |
|
|
Depreciation charge for the period |
|
|
- |
- |
|
|
|
Impairment charge for the period |
|
|
77 |
77 |
|
|
|
Elimination on disposal |
|
|
|
(113) |
(113) |
|
|
As at 30 June 2009 |
|
|
|
- |
- |
|
|
|
|
|
|
|
|
|
|
Net Book Value |
|
|
|
|
|
|
|
As at 31 March 2008 |
|
|
|
77 |
77 |
|
|
As at 30 June 2009 |
|
|
|
- |
- |
|
|
|
|
|
|
|
|
|
|
Impairment Review |
|
|
|
|
|
|
|
At 30 June 2009, the Directors have carried out an impairment review and concluded no further impairment charge was required. |
|||||
|
|
|
|
|
|
|
|
|
14 |
Interest in associates |
|||||
|
|
|
|
|
|
|
$ 000's |
|
|
Group and Company |
|
|
|
|
|
|
|
At 1 April 2008 |
|
|
|
|
8,900 |
|
|
Transfer to available for sale investments |
(8,900) |
||||
|
|
Share of associates loss for the period |
- |
||||
|
|
As at 30 June 2009 |
|
|
|
|
- |
|
|
|
|||||
|
|
On 1 April 2008, Vatukoula Gold Mines plc announced further issue of shares which resulted in the Group's holding decreasing to 16.91% and hence no longer deemed to be an associate and accounted for as an available for sale investment. |
|||||
|
|
||||||
|
|
||||||
|
|
|
|
|
|
|
|
|
15 |
Investment in subsidiaries |
|||||
|
|
|
|
|
|
|
|
|
|
Shares in Group undertakings |
|
|
$ 000's |
||
|
|
Company |
|
|
|
|
|
|
|
Cost |
|
|
|
|
|
|
|
At 1 April 2008 |
|
|
|
|
2 |
|
|
Additions |
|
|
|
|
1 |
|
|
As at 30 June 2009 |
|
|
|
|
3 |
|
|
|
|
|
|
|
|
|
|
At 30 June 2009 the parent company of the Group holds more than 20% of the share capital of the following subsidiary companies: |
|||||
|
|
Company |
Country of Registration |
Proportion held |
Nature of business |
||
|
|
Direct |
|
|
|
|
|
|
|
Templar Georgia Ltd |
BVI |
100% |
Holding Company |
||
|
|
Paranaiba Minerals Ltd |
BVI |
100% |
Holding Company |
||
|
|
|
|
|
|
|
|
|
16 |
Available for sale investments |
|||||
|
|
|
|||||
|
|
Group and Company |
|
$ 000's |
|||
|
|
At 1 April 2008 |
|
- |
|||
|
|
Transfer from interest in associate |
|
8,900 |
|||
|
|
VGG settlement - at cost |
|
(5,263) |
|||
|
|
Sales during the period |
|
(653) |
|||
|
|
Currency translation differences |
|
(1,425) |
|||
|
|
Loss in market value of investments |
|
(566) |
|||
|
|
As at 30 June 2009 |
|
993 |
|||
|
|
|
|||||
|
|
Available for sale investments includes only Listed Equity Securities (UK) in VGM. |
|||||
|
|
|
|||||
|
17 |
Trade and other receivables |
|||||
|
|
|
|
2009 |
|
2008 |
|
|
|
|
|
Group |
Company |
Group |
Company |
|
|
|
|
$ 000's |
$ 000's |
$ 000's |
$ 000's |
|
|
Current trade and other receivables |
|
|
|
|
|
|
|
Other debtors |
54 |
54 |
1,793 |
1,595 |
|
|
|
Prepayments |
57 |
57 |
12 |
9 |
|
|
|
Total |
|
111 |
111 |
1,805 |
1,604 |
|
|
|
|
|
|
|
|
|
|
Non Current trade and other receivables |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans due from subsidiaries |
- |
699 |
- |
6,529 |
|
|
|
|
|
|
|
|
|
|
|
The loans from subsidiaries are interest free and have no fixed repayment date. |
|
|
|||
|
|
|
|
|
|
|
|
|
18 |
Trade and other payables |
|||||
|
|
|
|
2009 |
|
2008 |
|
|
|
|
|
Group |
Company |
Group |
Company |
|
|
|
|
$ 000's |
$ 000's |
$ 000's |
$ 000's |
|
|
Current trade and other payables: |
|
|
|
|
|
|
|
Accruals |
|
57 |
57 |
298 |
251 |
|
|
||||||
|
|
||||||
|
|
|
|||||
|
19 |
Share capital |
|||||
|
|
|
|
|
|
|
|
|
|
Authorised |
|
|
|
|
$ 000's |
|
|
Unlimited Ordinary shares of no par value |
|
- |
|||
|
|
|
|
|
|
|
|
|
|
Called up, allotted, issued and fully paid |
|
|
|
Number of shares |
Nominal value |
|
|
|
|
|
|
|
$ 000's |
|
|
Incorporation |
1 |
- |
|||
|
|
20 April 2007 for cash at 0.0437p per share |
239,999,999 |
- |
|||
|
|
4 May 2007 for cash at 5p per share |
182,750,000 |
- |
|||
|
|
11 May 2007 for non-cash consideration at 5p per share |
300,000 |
- |
|||
|
|
7 September 2007 for non-cash consideration at 5.3p per share |
25,000,000 |
- |
|||
|
|
21 November 2008 for cash at 0.3p per share |
100,000,000 |
- |
|||
|
|
28 May 2009 for cash at 2p per share |
35,000,000 |
- |
|||
|
|
As at 30 June 2009 |
583,050,000 |
- |
|||
|
|
|
|
|
|
|
|
|
|
Total share options in issue |
|
|
|
||
|
|
During the period ended 30 June 2009, the Company granted 44.8 million options over ordinary shares. |
|||||
|
|
|
|||||
|
|
As at 30 June 2009, the unexercised options in issue were; |
|||||
|
|
|
|
|
|
|
|
|
|
Exercise Price |
Vesting Date |
Expiry Date |
Options in Issue |
|
|
|
|
|
|
|
30 June 2009 |
|
|
|
|
5p |
- |
04-May-12 |
10,000,000 |
|
|
|
|
1.7p |
- |
22-Apr-19 |
16,800,000 |
|
|
|
|
1.7p |
22-Apr-10 |
22-Apr-19 |
16,800,000 |
|
|
|
|
2.35p |
- |
04-Jun-19 |
5,600,000 |
|
|
|
|
2.35p |
04-Apr-10 |
04-Jun-19 |
5,600,000 |
|
|
|
|
|
|
|
54,800,000 |
|
|
|
|
|
|
|
|
|
|
|
|
No options or warrants lapsed or were exercised during the period to 30 June 2009 (2008: nil). 33.45 million options were cancelled during the period to 30 June 2009 (2008:nil). |
|||||
|
|
|
|
|
|
|
|
|
20 |
Share Based Payments |
|||||
|
|
Under IFRS 2 'Share Based Payments', the Company determines the fair value of options issued to Directors and Employees as remuneration and recognises the amount as an expense in the income statement with a corresponding increase in equity. |
|||||
|
|
Name |
Date Granted |
Date Vested |
Number |
Exercise Price (pence) |
Expiry Date |
|
|
David Lenigas |
04-May-07 |
04-May-07 |
2,000,000 |
5 |
04-May-12 |
|
|
John Stalker |
04-May-07 |
04-May-07 |
2,000,000 |
5 |
04-May-12 |
|
|
Neil Herbert |
04-May-07 |
04-May-07 |
2,000,000 |
5 |
04-May-12 |
|
|
Guy Elliot |
04-May-07 |
04-May-07 |
2,000,000 |
5 |
04-May-12 |
|
|
Graham Mascall |
04-May-07 |
04-May-07 |
2,000,000 |
5 |
04-May-12 |
|
|
Alastair Clayton |
22-Apr-09 |
22-Apr-09 |
5,600,000 |
1.7 |
22-Apr-19 |
|
|
Alastair Clayton |
22-Apr-09 |
22-Apr-10 |
5,600,000 |
1.7 |
22-Apr-19 |
|
|
Charles Wood |
22-Apr-09 |
22-Apr-09 |
5,600,000 |
1.7 |
22-Apr-19 |
|
|
Charles Wood |
22-Apr-09 |
22-Apr-10 |
5,600,000 |
1.7 |
22-Apr-19 |
|
|
Employees & Consultants |
22-Apr-09 |
22-Apr-09 |
5,600,000 |
1.7 |
22-Apr-19 |
|
|
Employees & Consultants |
22-Apr-09 |
22-Apr-10 |
5,600,000 |
1.7 |
22-Apr-19 |
|
|
Employees & Consultants |
08-Jun-09 |
08-Jun-09 |
5,600,000 |
2.35 |
08-Jun-19 |
|
|
Employees & Consultants |
08-Jun-09 |
08-Jun-10 |
5,600,000 |
2.35 |
08-Jun-19 |
|
|
Totals |
|
|
54,800,000 |
|
|
|
|
||||||
|
|
||||||
|
|
|
|
|
|
|
|
|
20 |
Share Based Payments (continued) |
|||||
|
|
The fair value of the options at grant date has been calculated as follows; |
|||||
|
|
· Options granted 4 May 2007, 3.6 pence per share |
|||||
|
|
· Options granted 22 April 2009, 1.46 pence per share |
|||||
|
|
· Options granted 4 June 2009, 1.89 pence per share |
|||||
|
|
|
|
|
|
|
|
|
|
The fair value of the options granted during the period ended 30 June 2009 amounted to $84,009 (2008:$484,000), and the fair value of the cancelled options was $104,852, giving a net credit to the income statement of $20,843.. The assessed fair value at grant date is determined using the Black-Scholes Model that takes into account the exercise price, the term of the option, the share price at grant date, the expected price volatility of the underlying share, the expected dividend yield and the risk-free interest rate for the term of the option. |
|||||
|
|
|
|||||
|
|
The following table lists the inputs to the models used for the period ended 30 June 2009: |
|||||
|
|
|
|
|
8 June 2009 issue |
22 April 2009 issue |
4 May 2007 issue |
|
|
Dividend Yield (%) |
- |
- |
- |
||
|
|
Expected Volatility (%) |
60.0 |
60.0 |
59.4 |
||
|
|
Risk-free interest rate (%) |
0.25 |
0.25 |
4.8 |
||
|
|
Share price at grant date (pence) |
2.75 |
2.10 |
6.00 |
||
|
|
The expected volatility reflects the assumption that the historical volatility is indicative of future trends, which may, not necessarily be the actual outcome. |
|||||
|
|
|
|
|
|
|
|
|
21 |
Analysis of changes in net funds |
|||||
|
|
Group |
|
|
|
|
|
|
|
|
|
|
|
2009 |
2008 |
|
|
|
|
|
|
$ 000's |
$ 000's |
|
|
Balance at beginning of period |
2,325 |
- |
|||
|
|
Change during the period |
(1,838) |
2,325 |
|||
|
|
Balance at the end of the period |
487 |
2,325 |
|||
|
|
|
|
|
|
|
|
|
22 |
Financial instruments |
|||||
|
|
The Group uses financial instruments comprising cash, liquid resources and debtors/creditors that arise from its operations. The Group holds cash as a liquid resource to fund the obligations of the Group. The Group's cash balances are held in Sterling and US Dollars. The Group's strategy for managing cash is to maximise interest income whilst ensuring its availability to match the profile of the Group's expenditure. This is achieved by regular monitoring of interest rates and monthly review of expenditure forecasts. |
|||||
|
|
|
|||||
|
|
The Company has a policy of not hedging and therefore takes market rates in respect of foreign exchange risk, however it does review its currency exposures on an ad hoc basis. Currency exposures relating to monetary assets held by foreign operations are included within the foreign exchange reserve in the Group Balance Sheet. |
|||||
|
|
|
|||||
|
|
The Group considers the credit ratings of banks in which it holds funds in order to reduce exposure to credit risk. |
|||||
|
|
|
|||||
|
|
To date the Group has relied upon equity funding to finance operations. The Directors are confident that adequate cash resources exist to finance operations to commercial exploitation but controls over expenditure are carefully managed. |
|||||
|
|
|
|||||
|
|
The net fair value of financial assets and liabilities approximates the carrying values disclosed in the financial statements. The currency and interest rate profile of the financial assets is as follows: |
|||||
|
|
|
|
|
|||
|
|
Cash and short term deposits |
2009 |
2008 |
|||
|
|
|
|
|
|
$ 000's |
$ 000's |
|
|
|
|
|
|
|
|
|
|
Sterling |
487 |
1,297 |
|||
|
|
USD |
- |
950 |
|||
|
|
Georgian Lari |
- |
78 |
|||
|
|
At end of period |
487 |
2,325 |
|||
|
|
|
|||||
|
|
The financial assets comprise cash balances in interest earning bank accounts at call. The financial assets in Sterling currently earn interest at the base rate set by the Bank of England less 0.15% |
|||||
|
|
||||||
|
|
||||||
|
|
|
|
|
|
|
|
|
23 |
Commitments |
|||||
|
|
As at 30 June 2009, the Company had entered into the following material commitments: |
|||||
|
|
|
|
|
|
|
|
|
|
Exploration commitments |
|||||
|
|
Ongoing exploration expenditure is required to maintain title to the Group's mineral exploration permits. No provision has been made in the financial statements for these amounts as the expenditure is expected to be fulfilled in the normal course of the operations of the Group. |
|||||
|
|
|
|
|
|
|
|
|
24 |
Business combinations |
|||||
|
|
Disposal of Goldencrest Enterprises Ltd ("Goldencrest") |
|||||
|
|
|
|
|
|
|
|
|
|
On 26 November 2008 Templar Minerals Ltd through its wholly owned subsidiary Templar Georgia Ltd disposed of its 90% holding in Goldencrest Enterprises Ltd, a company based in BVI. This transaction has been accounted for by the purchase method of accounting. The fair value of identifiable assets and liabilities of Goldencrest as at the date of disposal are: |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair value |
|
|
|
|
|
|
|
$'000 |
|
|
|
|
|
|
|
|
|
|
Property, plant and equipment |
|
|
- |
||
|
|
Cash and cash equivalents |
|
|
- |
||
|
|
Exploration costs & licences |
|
|
- |
||
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
Other creditors |
|
|
(2,972) |
||
|
|
|
|
|
|
|
(2,972) |
|
|
Fair value of net assets disposed |
|
|
(2,972) |
||
|
|
|
|
|
|
|
|
|
|
Consideration: |
|
|
|
||
|
|
Cash received |
|
|
- |
||
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
The cash inflow on disposal was as follows; |
|
|
|
||
|
|
Net cash disposed with subsidiary |
|
|
(165) |
||
|
|
Cash received |
|
|
- |
||
|
|
Net cash outflow |
|
|
(165) |
||
|
|
|
|
|
|
||
|
|
Notes to the disposal : |
|
|
|
||
|
|
|
|
|
|
||
|
|
|
|||||
|
|
|
|||||
|
|
|
|||||
|
|
|
|
|
|
||
|
|
||||||
|
|
||||||
|
|
|
|||||
|
25 |
Related party transactions |
|||||
|
|
Transactions between the company and its subsidiaries, which are related parties, have been eliminated on consolidation and are not disclosed in this note. Transactions between other related parties are discussed below. |
|||||
|
|
|
|
|
|
|
|
|
|
During the period, the Company paid consultancy fees of $78,000 (2008: $127,000) to Promaco Ltd, a Company related to John Stalker, Director of Templar Minerals Ltd. This amount was paid under a consultancy services agreement dated 15 September 2007 and was capitalised in exploration costs |
|||||
|
|
|
|
|
|
|
|
|
|
Remuneration of Key Management Personnel |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The remuneration of the directors, and other key management personnel of the Group, is set out below in aggregate for each of the categories specified in IAS24 Related party Disclosures. |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2009 |
2008 |
|
|
|
|
|
|
$ 000's |
$ 000's |
|
|
Short-term employee benefits |
122 |
354 |
|||
|
|
Share-based payments |
46 |
475 |
|||
|
|
|
|
|
|
168 |
829 |
|
|
|
|
|
|
|
|
|
26 |
Post balance sheet events |
|||||
|
|
There are no post balance sheet events to disclose. |
|
|
|
||
General Information
The financial information set out above for the period to 30 June 2009 and the year to 31 March 2008 does not constitute statutory accounts as defined in Section 240 of the Companies Act 1985, but is derived from those accounts. Whilst the financial information included in this announcement has been compiled in accordance with International Financial Reporting Standards ("IFRS") this announcement itself does not contain sufficient financial information to comply with IFRS. A copy of the statutory accounts for 2008 has been delivered to the Registrar of Companies and those for 2009 have been posted to Shareholders.
This information is provided by RNS
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