TIDMAR.
RNS Number : 0697L
Archipelago Resources PLC
30 August 2012
30 August 2012
AIM: AR.
Archipelago Resources plc
("Archipelago" or "the Company")
Unaudited Interim Results for the six months ended 30 June
2012
Archipelago (AIM:AR.) is pleased to announce its unaudited
interim results for the six months ended 30 June 2012 ("H1
2012").
HIGHLIGHTS
-- Revenue generated from mining operations of $97.0 million.
-- Net profit of $17.1 million for H1 2012, compared to a loss of $3.6 million for H1 2011.
-- Operating cash flow of $35.4 million, compared to a cash
outflow of $12.6 million for H1 2011.
-- Excluding income taxes paid of $6.8 million, cash flows were $42.2 million.
-- Produced 60,386 Au Eq oz for H1 2012, compared to 8,800 Au Eq
oz for H1 2011. 2012 full year guidance remains 135,000 to 145,000
oz.
-- Cash costs per Au oz of $753 for the period (with 2012 full
year guidance being $580 to $640 per Au oz, based on higher head
grades and lower strip ratios expected in H2 2012).
-- Safety standards upheld with no lost time injuries in H1 2012.
-- As announced in January 2012, the resource increased to 2.58M
contained oz Au and reserve increased to 1.47M contained oz Au
(with life of mine extended to 9 years plus 7 years of
stockpiles).
CORPORATE UPDATE
Mr Eddy Porwanto will cease executive duties with Archipelago,
but will remain on the Board of the Company. Mr Terkelin Purba has
been appointed President Director of Archipelago's Indonesian
operating entities (PT Meares Soputan Mining and PT Tambang Tondano
Nusajaya).
KEY FINANCIAL METRICS
Restated
6 months 6 months
Component to to
30/6/2012 30/6/2011
----------------------------- ---------- ----------
Gold equivalent oz
produced 60,386 8,800
Average realised gold price
per ounce $1,661 $1,506
----------------------------- ---------- ----------
Total cash cost per
ounce $753 -
Revenue $96,957 -
----------------------------- ---------- ----------
Gross Profit $37,742 -
----------------------------- ---------- ----------
Earnings/(Loss) $17,091 ($3,678)
Earnings/(Loss) per
share $0.03 ($0.006)
----------------------------- ---------- ----------
Cash flows from/(used) in
operations $35,374 ($12,599)
Cash & cash equivalents
to end of period $22,643 $22,098
----------------------------- ---------- ----------
USD used; figures are in '000 (save for gold equivalent ounces
sold;
average realized gold price per ounce; total cash cost per
ounce)
COMMENT
Commenting on the results, Mr Marcus Engelbrecht, Managing
Director and CEO, said:
"The last six months has been our first half year reporting
period at full production. Revenues of $97 million, operating cash
flows of $35 million and a net profit of $17 million provides a
strong platform for meeting our strategy of growth. With production
continuing to ramp up over the second half of 2012, Archipelago
remains focused on generating significant cash flows and returning
value to shareholders."
NOTES
For comparative purposes, H1 2011 refers to the six months ended
June 30, 2011. Readers should refer to the H1 2011 and H1 2012
condensed interim financial statements for complete information.
All results are presented in United States Dollars unless otherwise
stated.
COMPETENT PERSON STATEMENT
The information in this report that relates to mineral
exploration results, together with any related assessments and
interpretations, has been verified by and approved for release by
Mr. Graeme Fleming B App Sc (Geol), MAusIMM, a qualified geologist
and full-time consultant for PT. Tambang Tondano Nusajaya, a
subsidiary of Archipelago Resources plc. Mr. Fleming has sufficient
experience which is relevant to the style of mineralization and
type of deposit under consideration and to the activity which he is
undertaking to qualify as a Competent Person as defined in the 2004
edition of the "Australasian Code For Reporting of Exploration
Results, Mineral Resources and Ore Reserves." Mr. Fleming consents
to the inclusion of the information contained in this report in the
form and context in which it appears.
FURTHER INFORMATION
Archipelago Resources
plc +44 20 7523
Matthew Salthouse +65 6535 3419 8000
-------------------------- ---------------- ---------------------- ------------
Canaccord Genuity
Limited
Rob Collins
Andrew Chubb
-------------------------- ---------------- ---------------------- ------------
Grant Thornton Corporate
Finance
Gerry Beaney +44 20 7383
David Hignell 5100
-------------------------- ---------------- ---------------------- ------------
Liberum Capital
Buchanan Limited
Bobby Morse +44 20 7466 Michael Rawlinson +44 20 3100
Gordon Poole 5000 Christopher Kololian 2000
-------------------------- ---------------- ---------------------- ------------
ABOUT ARCHIPELAGO
Archipelago is a producing mining company listed on the AIM
market of the London Stock Exchange. Archipelago's vision is to
grow into a respected and regionally dominant mid-cap gold
producer, managing a portfolio of gold mines and delivering
significant value and returns for our shareholders. Archipelago's
principal activities are gold mining and exploration in Indonesia
(as the 95% owner of the producing Toka Tindung Gold Mine in North
Sulawesi, Indonesia). Archipelago is also advancing exploration
projects in Vietnam and the Philippines. In 2012, Archipelago
expects to produce between 135,000 and 145,000 gold equivalent
ounces at a cash cost of between US$580 and US$640 per ounce.
CHIEF EXECUTIVE OFFICER'S STATEMENT
I am pleased to report on Archipelago's performance for H1 2012,
representing the Company's first half year of full operations since
achieving nameplate production in November 2011.
For H1 2012 Archipelago reported continuous and stable
production from the Toka Tindung Gold Mine for both Q1 and Q2 2012,
broadly in line with expectations.
Total production for the first half was 60,386 Au Eq oz at a
cash cost of $753 with Archipelago maintaining 2012 full year
production guidance of 135,000 to 145,000 Au Eq oz. Cash costs over
the period are expected to be in the range of $580 to $640 per oz
(excluding royalties).
Archipelago's operations have delivered revenue of $97 million,
operating cash flows of $35.4 million and a net profit of $17.1
million over the reporting period. This is a significant
achievement and is a reflection of the quality of the asset and the
commitment of Archipelago's employees.
Archipelago will sustain and improve upon the H1 2012 production
performance as the year progresses. Gold production subsequent to
June 2012 has shown an upward trend with the focus in the second
half being on increasing gold production, managing costs and
generating a strong positive cash flow.
The Company believes that exploration will continue to deliver
significant value and additional mine life to Archipelago's
operation. Based on the success of the 2011 programme, the Company
is targeting exploration drilling at our near mine deposits across
the Toka Tindung Gold Mine.
Archipelago's objective is to add to the JORC complaint Resource
and Reserve as the year progresses. Subsequent to the end of H1
2012 and based on drilling over that period, Archipelago announced
encouraging drill results from the high grade southern satellite
deposits of Blambangan and Pajajaran, as well as the Toka East
prospect adjoining the Toka Tindung main open pit.
Archipelago's social licence in Indonesia remains robust as the
Company continues to work constructively with all stakeholders in a
transparent and co-operative manner. The Company takes corporate
social responsibility seriously and is maintaining dialogue with
all levels of Government in Indonesia who remain very supportive of
Archipelago's operations.
Before reporting on Archipelago's results in more detail, I wish
to advise that Mr Eddy Porwanto is moving to another senior role
within Indonesia. He will however remain a non-executive director
on the Archipelago Board. Mr Porwanto was instrumental in the
commissioning of the Toka Tindung Gold Mine and I take this
opportunity to thank him for his contribution and look forward to
working with him in his role as a non-executive director.
I also wish to announce the appointment of Mr Terkelin Purba to
the position of President Director of Archipelago's Indonesian
companies (PT Meares Soputan Mining and PT Tambang Tondano
Nusajaya), with overall responsibility for external affairs in
Indonesia. Mr Purba has worked for Archipelago for a number of
years and has extensive experience in the Indonesian mining
sector.
Operational Review
Production
Key operating metrics for H1 2012 are set out below in Figure
1.
Figure 1: H1 2012 Production Results
Component H1 2012 Q2 2012 Q1 2012
-------------------- ------- ---------- ---------- ----------
Ore Mined (T) 1,262,714 608,946 654,768
Waste Mined
(T) 7,572,790 3,882,243 3,690,547
-------------------- ------- ---------- ---------- ----------
Total Mined
(T) 8,83,504 4,491,189 4,345,315
Ore Processed 888,184 460,325 427,859
-------------------- ------- ---------- ---------- ----------
Strip Ratio 6.00 6.38 5.64
----------------------------- ---------- ---------- ----------
Head Grade
for Au (g/t) 2.29 2.24 2.33
Head Grade
for Ag (g/t) 6.86 8.68 4.98
-------------------- ------- ---------- ---------- ----------
Process Recovery Rate
(%) 90.60 89.94 91.20
Gold Ounces Produced
(Eq oz) 60,386 28,197 32,189
----------------------------- ---------- ---------- ----------
Production for H1 2012 was broadly in line with expectations,
with an average gold equivalent head grade of 2.44 g/t reported.
Through the period, ore was primarily sourced from the main Toka
Tindung pit, in addition to the Pajajaran and Araren high grade
deposits. Indicative of the first year of mining, the strip ratio
of 6:1 was slightly higher than forecast over the life of the
mine.
In part, this was due to a greater proportion of lower grade ore
being sourced from the Toka Tindung main pit over H1 2012; with the
Company continuing further development work at Pajajaran and other
higher grade deposits for mining over the second half.
For the remainder of the year, Archipelago will ramp up mining
at the higher grade Pajajaran and Kopra deposits, in addition to
the Toka Tindung main pit. At Pajajaran, modelling indicates an
average in situ ore grade of 4.48 g/t Au. Similarly, grade control
drilling indicates an average in situ grade of 4.54 g/t Au for
mining at Kopra. Archipelago is currently in the early stages of
removing waste from the Kopra deposit and expects to move into this
ore body early in Q4 2012.
Accessing the ore deposit at Kopra will assist in moving the
strip ratio below 6:1, given the ore is near surface. The higher
head grade also feeds into Archipelago's overall production
schedule, which remains on track for the full year. Guidance is
maintained at 135,000 to 145,000 Au Eq oz for the full year, with
higher production scheduled for H2 2012.
Milling rates and plant recoveries also trended to plan for H1
2012, with ore processed exceeding nameplate capacity on an
annualised basis. Average recoveries were also sustained at over
90%, notwithstanding some higher silver grades that impacted on
recovery rates. Archipelago continued to implement a number of
plant efficiency measures to drive further productivity
improvements over H1 2012. This will continue over the second half,
including installation of an oxygen plant.
Cash costs for H1 2012 were $753 per oz (excluding royalties),
with key components within this number being mining costs (34%),
fuel (33%), direct labour (13%) and consumables/reagents (20%).
Archipelago expects annualised cash costs to trend down over the
remainder of the year, as output ramps up, grades increase and the
strip ratio declines. Notwithstanding this, the pricing of a number
of key inputs remains under pressure (eg: fuel, consumables and
labour) and the Company continues to identify a number of
initiatives to improve productivity and reduce costs.
During H1 2012, management continued to work with local
communities to implement a number of initiatives aimed at improving
the overall quality of life in the North Sulawesi region.
Archipelago is committed to
working in a transparent manner with business, community and
political leaders in Indonesia, with strong in-country support
remaining the key feature of the Company's success in the
region.
In respect of safety and health, I am pleased to report that
there were no lost time injuries during H1 2012. The safety of our
staff is of primary importance and the Company will continue to
focus on making improvements in this area.
Exploration
The current mine plan includes five areas of mineralisation
where it is economic to develop open pit operations. With the
majority of these ore bodies open along strike and at depth,
Archipelago's exploration strategy is to target near mine prospects
for further drilling. As noted in my opening comments, H1 2012
exploration efforts were focused on drilling adjacent to the Toka
East main pit and southern satellite deposits (with all areas
located in close proximity to the processing plant). This approach
has already yielded positive results, as outlined in announcements
published subsequent to the end of H1 2012.
In relation to the southern pits, encouraging results were
returned from drilling near the deposits of Blambangan (28 holes of
RC drilling for 3,918m) and Pajajaran (24 holes of RC drilling for
3,200m and 9 holes of diamond drilling for 699m), including 34m at
3.27g/t (BP016, 6-20m), 24m at 5.64g/t (BP020, 16-40m) and 14m at
8.03g/t (BP015, 0-14m). In this regard, mineralisation at
Blambangan is expected to continue below the current pit design and
also along strike to the south; while linking up with the Pajajaran
deposit to the north. High grade "shoots" can also be interpreted
and are being targeted for additional resource definition. Please
refer to Figure 2 for a long section view of the Blambangan
deposit.
Figure 2: Long Section View of Blambangan
http://www.rns-pdf.londonstockexchange.com/rns/0697L_-2012-8-30.pdf
Drilling adjacent to Pajajaran indicates high grade
intersections located in narrow 2-5 metre wide zones, which are
similar to what is currently being mined at Pajajaran (which has an
average grade of 3-4 g/t). Thicker sections also represent
intersections of known structures. In both cases, the areas have
been subjected to relatively narrow drilling at this stage, and
further prospectivity is likely.
Significant drill results have also been recorded at the Toka
East prospect, which lies adjacent to the main Toka Tindung
deposit. 49 of 51 RC drill holes (for 9,431m) intersected
meaningful gold mineralisation including 25m at 2.45g/t (TITO058,
106-131m), 12m at 4.96g/t (TITO078, 87-99m) and 14m at 3.34g/t
(TITO015A, 101-115m). The drilling indicates a geological model for
Toka East which is similar to that of the adjoining main Toka
Tindung deposit (with moderate to high grade vertical to
sub-vertical mineralised gold feeder zones). Wider grade horizontal
zones are also apparent.
Further drilling will occur at these and other near site targets
over the remainder of 2012. With the positive drilling results to
date, I am confident that exploration activities will lead to an
increase in Archipelago's JORC compliant Resource and Reserve, with
an update expected to be published in early 2013.
Financial Review
The following provides an overview of Archipelago's financial
performance for H1 2012:
Restated
30 June 2012 30 June 2011
(6 months (6 months
unaudited) unaudited)
-------------------------------------------------- -------------- --------------
US$000 US$000
Revenue 96,957 -
Gross profit 37,742 -
-------------------------------------------------- -------------- --------------
Operating profit/loss (EBIT) 32,540 (2,298)
Profit/(loss) before tax 28,589 (3,678)
-------------------------------------------------- -------------- --------------
Profit/(loss) attributable to the parent company 17,091 (3,678)
-------------------------------------------------- -------------- --------------
Net cash generated by operations before tax 35,374 (12,599)
Net cash (outflow)/inflow 292 (2,086)
-------------------------------------------------- -------------- --------------
Archipelago's earnings increased to $17.1 million for H1 2012,
relative to a loss of $3.6 million for H1 2011.
During H1 2012, Archipelago sold 58,389 Au Eq oz. For H1 2012,
total metal revenues from mining operations were $97 million. The
Company realised gold prices of $1,661 per oz sold during H1 2012
(whereas the London PM Fix price for Au averaged $1,651 per oz for
the same period).
Production costs were $59.2 million (with no comparable data
available for H1 2011 as operations were still in the
pre-commissioning phase). Key inputs to production costs were fuel
and consumables, which were higher than anticipated across the
sector. Cost of sales included depreciation and depletion charges
of $9.0 million.
Administrative expenses were $5.2 million versus $2.4 million
for H1 2011. The interest expense on Archipelago's debt facilities
was $3.9 million. At June 30, 2012 the balances outstanding on
Archipelago's debt facilities totalled $63.75 million. Over the
period, the Company made debt and lease repayments totalling $11.3
million. Cash on hand at June 30, 2012 was $22.6 million.
Taxation expenses were materially higher relative to H1 2011 due
primarily to the increased profitability of mining operations.
Growth Strategy
Archipelago's consistent production platform and on-going
exploration success feeds into the Company's overall growth
strategy. Over the next 6 months, the Company will advance scoping
studies to assess options for increasing the production profile at
the Toka Tindung operation, given the likelihood of an expanded
resource and reserve which already supports a 9 year life-of-mine
(plus 7 years of processing lower grade stockpiles).
Studies are underway to consider plant optimisation options, so
as to expand throughput on a greater reserve. The development of
heap leaching is also being examined, with this option likely to
facilitate the recovery in the near term of gold from lower grade
ore and/or stockpiles. In either scenario, the return on capital
expenditure is likely to be attractive and I will provide updates
on these initiatives in further detail over the next 6 months.
The Board and management remain committed to growing Archipelago
and providing robust returns for our shareholders.
Marcus Engelbrecht
Managing Director & Chief Executive Officer
30 August 2012
INTERIM FINANCIAL STATEMENTS & NOTES
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the six months ended 30 June 2012
Restated
Unaudited Unaudited
6 months 6 months
ended ended
30 June 30 June
2012 2011
-------------------------------------- ------ ------------ ------------
Notes US$000 US$000
REVENUE 96,957 -
Cost of sales (59,215) -
GROSS PROFIT 37,742 -
------------ ------------
Other income 25 67
Administrative expenses (5,227) (2,365)
OPERATING PROFIT/(LOSS) 32,540 (2,298)
------------ ------------
Finance costs (3,951) (1,380)
PROFIT/(LOSS) BEFORE INCOME TAX 28,589 (3,678)
------------ ------------
Taxation (11,498) -
PROFIT/(LOSS) FOR THE HALF YEAR 17,091 (3,678)
------------ ------------
ATTRIBUTABLE TO:
Owners of the parent 17,091 (3,623)
Non-controlling Interests - (55)
17,091 (3,678)
============ ============
EARNINGS PER SHARE (cents per share)
Basic 3 0.03 (0.006)
There were no recognised gains or losses other than those shown
above. All the Group's activities consist of continuing
operations.
STATEMENTS OF FINANCIAL POSITION
At 30 June 2012
Unaudited Audited
30 June 31 December
2012 2011
----------------------------------------- ------ ---------- -------------
Note US$000 US$000
NON- CURRENT ASSETS
Property, plant and equipment 4 141,148 140,772
Development, exploration and evaluation 5 109,287 106,666
Deferred Stripping 8,008 5,112
Investments 952 952
Other receivables 27,988 16,328
---------- -------------
287,383 269,830
---------- -------------
CURRENT ASSETS
Inventories 26,470 23,979
Trade and other receivables 6,473 3,777
Cash and cash equivalents 22,643 22,351
---------- -------------
55,586 50,107
TOTAL ASSETS 342,969 319,937
NON-CURRENT LIABILITIES
Other financial liabilities 54,716 70,173
Deferred tax liability 13,047 6,640
Provisions 11,867 12,229
79,630 89,042
---------- -------------
CURRENT LIABILITIES
Trade and other payables 23,222 17,241
Interest-bearing loans and borrowings 15,217 11,040
Corporate taxes payable 10,347 5,350
---------- -------------
48,786 33,631
TOTAL LIABILITIES 128,416 122,673
NET ASSETS 214,553 197,264
========== =============
TOTAL EQUITY 6 214,553 197,264
========== =============
STATEMENTS OF CASH FLOW
For the six months ended 30 June 2012
Restated
Unaudited Unaudited
30 June 30 June
2012 2011
--------------------------------------------- ---------- -----------
US$000 US$000
CASH INFLOWS/OUTFLOWS FROM OPERATING
ACTIVITIES 35,374 (12,599)
---------- -----------
Income Taxes Paid (6,853) -
CASH FLOWS FROM INVESTING ACTIVITIES
Payments to acquire property, plant and
equipment (5,915) (34,331)
Payments for development, exploration
and evaluation expenditure (8,979) (17,168)
Payments of transaction taxes - (1,108)
Acquisition of additional shares - (4,546)
---------- -----------
NET CASH USED IN INVESTING ACTIVITIES (14,894) (57,153)
---------- -----------
CASH FLOWS FROM FINANCING ACTIVITIES
Issue of ordinary share capital 196 -
Proceeds from borrowings - 70,000
Prepaid borrowing cost - (2,397)
Repayment of borrowings (10,567) -
Lease payments (697) (210)
Interest paid (2,267) -
---------- -----------
NET CASH GENERATED FROM FINANCING ACTVITIES (13,335) 67,393
---------- -----------
Effect of change in exchange rates on
cash and cash equivalents - 273
---------- -----------
NET INCREASE/ DECREASE IN CASH AND CASH
EQUIVALENTS 292 (2,086)
CASH AND CASH EQUIVALENTS AT START OF
PERIOD 22,351 24,184
---------- -----------
CASH AND CASH EQUIVALENTS AT END OF PERIOD 22,643 22,098
========== ===========
1. BASIS OF PRESENTATION
The unaudited condensed financial statements for the six months
ended 30 June 2012:
-- were prepared in accordance with International Accounting
Standard 34 "Interim Financial Reporting" ("IAS 34") and thereby
International Financial Reporting Standards ("IFRS"), both as
issued by the International Accounting Standards Board ("IASB") and
as adopted by the European Union ("EU");
-- are presented on a condensed basis as permitted by IAS 34 and
therefore do not include all disclosures that would otherwise be
required in a full set of financial statements and should be read
in conjunction with the 2011 Annual Report;
-- apply the same accounting policies, presentation, and methods
of calculation as those followed in the preparation of the annual
financial statements for the year ended 31 December 2011;
-- include all adjustments, consisting of normal recurring
adjustments, necessary for a fair statement of the results for the
periods presented; and
-- were approved by the Board of Directors on 29 August 2012.
The information relating to the year ended 31 December 2011 is
an extract from the published Annual Report released to the market
earlier this year, on which the Independent Auditors' Report was
unqualified.
The preparation of the condensed financial statements requires
management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the balance sheet date, and
the reported amounts of revenues and expenses during the reporting
period. Actual results could vary from these estimates. The
estimates and underlying assumptions are reviewed on an on-going
basis. Revisions to accounting estimates are recognised in the
period in which the estimate is revised if the revision affects
only that period or in the period of revision and future periods if
the revision affects both current and future periods.
The financial statements are presented in US dollars which is
the group functional currency and all values are rounded to the
nearest thousand ($000), except when otherwise indicated. The
company is incorporated in the United Kingdom and the principal
places of business are Singapore and Indonesia.
2. PRIOR PERIOD RESTATEMENT - COMMERCIAL PRODUCTION
In the interim financial statements for the period to 30 June
2011 the Group's comprehensive Income Statement included revenue
and costs relating to the commissioning phase of the Toka Tindung
project. At the year end and in accordance with IAS 16 it was
concluded that the date of commercial production commencement was
at 1 July 2011, therefore all revenues and costs prior to this
period were capitalized as development costs in the period up to
and including the year ended 31 December 2011.
The interim financial statements for the six months ended 30
June 2011 have been restated to reflect this. The effect of the
restatement on those unaudited financial statements is summarised
below:
$'000
Decrease in revenue (7,742)
Decrease in cost of sales (6,700)
Decrease in gross profit (1,042)
Increase the loss for the half year 1,042
Increase cash outflow from operations 1,042
Decrease cash outflow for development (1,042)
3. EARNINGS PER SHARE
The calculation of basic earnings per share is based on a profit
for H1 2012 of $17.1 million (2011: loss of $3.7 million), and on
573,843,649 (2011: 569,197,635) ordinary shares, being the weighted
average number of ordinary shares in issue during the year.
4. PROPERTY PLANT & EQUIPMENT
Land and Mine Mine Office
mine buildings plant Motor Construction Closure plant Total
US$000 and vehicles in progress Asset and equipment
equipment US$000 US$000 US$000
US$000 US$000 US$000
----------- ---------------- ---------- ------------ -------------------- ----------- --------------- ------------
Half Year ended 30 June
2012
Cost
At 1 January
2012 11,210 126,504 2,570 363 10,916 769 152,332
Additions 73 468 391 4,418 - 565 5,915
---------- ---------- ------------ -------------------- ---------------- ---------- ------------
At 30 June
2012 11,283 126,972 2,961 4,781 10,916 1,334 158,247
---------- ---------- ------------ -------------------- ---------------- ---------- ------------
Depreciation
At 1 January
2012 (1,436) (8,791) (518) - (505) (310) (11,560)
Charge for
the year:
Depreciation (261) (4,714) (102) - (372) (91) (5,540)
At 30 June
2012 (1,697) (13,505) (620) - (877) (401) (17,100)
---------- ---------- ------------ -------------------- ---------------- ---------- ------------
Net book value
At 1 January
2012 9,774 117,713 2,052 363 10,411 459 140,772
---------- ---------- ------------ -------------------- ---------------- ---------- ------------
At 30 June
2012 9,586 113,467 2,341 4,781 10,039 933 141,148
========== ========== ============ ==================== ================ ========== ============
5. DEVELOPMENT, EXPLORATION AND EVALUATION
Exploration
Development and evaluation Total
US$000 US$000 US$000
------------------------------- ------------ ---------------- --------
Half Year ended 30 June 2012
Net book value
At 1 January 2012 96,245 10,421 106,666
Expenditure during the period 747 5,336 6,083
Amortisation (3,462) - (3,462)
At 30 June 2012 93,530 15,757 109,287
------------ ---------------- --------
6. CHANGES IN EQUITY
Opening Comprehensive Shares Closing
At 1 January 2012 Income Issued At 30 June 2012
US$000 US$000 US$000 US$000
------------------- -------------- -------- -----------------
197,264 17,091 198 214,553
7. SUBSEQUENT EVENTS
No matter or circumstance has arisen since 30 June 2012 that has
significantly affected, or will significantly affect the group's
operations, results or state of affairs.
INDEPENDENT REVIEW REPORT
INTRODUCTION
We have been engaged by the Company to review the condensed set
of financial statements in the half--yearly interim report for the
six months ended 30 June 2012, which comprises the Statement of
Comprehensive Income, the Balance Sheet, the Statement of Changes
in Equity, the Cash Flow Statement and the related notes. We have
read the other information contained in the half--yearly interim
report and considered whether it contains any apparent
misstatements or material inconsistencies with the information in
the condensed set of financial statements.
DIRECTORS' RESPONSIBILITIES
The half--yearly interim report is the responsibility of, and
has been approved by, the Directors. As disclosed in note 1, the
half--yearly interim financial statements of the Company are
prepared in accordance with International Financial Reporting
Standards ("IFRS") as adopted by the European Union. The condensed
set of financial statements included in this half--yearly interim
report has been prepared in accordance with International
Accounting Standard ("IAS") 34 "Interim Financial Reporting" as
adopted by the European Union.
OUR RESPONSIBILITY
Our responsibility is to express to the Company a conclusion on
the condensed set of financial statements in the half--yearly
interim report based on our review.
SCOPE OF REVIEW
We conducted our review in accordance with International
Standard on Review Engagements (UK and Ireland) 2410, "Review of
Interim Financial Information Performed by the Independent Firm of
the Entity" issued by the Auditing Practices Board for use in the
United Kingdom. A review of interim financial information consists
of making enquiries, primarily of persons responsible for financial
and accounting matters, and applying analytical and other review
procedures. A review is substantially less in scope than an audit
conducted in accordance with International Standards on Auditing
(UK and Ireland) and consequently does not enable us to obtain
assurance that we would become aware of all significant matters
that might be identified in an audit. Accordingly, we do not
express an audit opinion.
CONCLUSION
Based on our review, nothing has come to our attention that
causes us to believe that the condensed set of financial statements
in the half--yearly interim report for the six months ended 30 June
2012 is not prepared, in all material respects, in accordance with
International Accounting Standard 34 as adopted by the European
Union.
CHANTREY VELLACOTT DFK LLP
Chartered Accountants
Statutory Auditor
London
30 August 2012
This information is provided by RNS
The company news service from the London Stock Exchange
END
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