RNS Number:9890R
Centamin Egypt Limited
27 February 2007
Centamin Egypt Limited ("Centamin" or the "Company")
Financial Report for the Half Year Ended 31 December 2006
DIRECTORS' REPORT
________________________________________________________________________________
The Directors of Centamin Egypt Limited herewith submit the financial report for
the half-year ended 31 December 2006. In order to comply with the provisions of
the Corporations Act 2001, the Directors report as follows:
DIRECTORS
The names of the Directors and officers of the company during or since the end
of the half-year are:
Mr Sami El-Raghy, Chairman
Mr Josef El-Raghy, Managing Director/CEO
Mr Colin Cowden, Non Executive Director
Mr Gordon B Speechly, Non Executive Director
Dr Thomas Elder, Non Executive Director
Mr H Stuart Bottomley, Non Executive Director
COMPANY SECRETARY
Mrs Heidi Brown
PRINCIPAL ACTIVITIES
The principal activity of the consolidated entity during the course of the
financial year was the exploration for precious and base metals and progress
towards completion of a Definitive Feasibility Study (DFS) into the Sukari Gold
Project located in the western desert region of Egypt. There were no significant
changes in the nature of the activities of the consolidated entity during the
half-year.
REVIEW OF OPERATIONS
During the half-year, the Company focused on infill and step out drilling of the
Sukari Gold Project and completion of work on the Definitive Feasibility Study
(DFS) into the development of a four million tonne per annum gold processing CIL
plant at the project's location in Egypt.
In August 2006, an upgrade of the resource modelling and grade estimation of the
Sukari geological resource was completed to JORC standards by independent
resource consultants, Hellman & Schofield. The gold resource increased to 142.96
Mt @ 1.48 g/t Au for 6.79 Moz Au at a 0.5 g/t cu-off grade.
In October 2006, the Company entered into an agreement with a subsidiary of
Newmont Mining Corporation, to acquire the Kori Kollo CIL process plant for
US$11 million. The Kori Kollo plant is located in Bolivia and was built and
commissioned by Minproc Engineers in 1993. The plant is ideally suited to the
Sukari orebody and key equipment sizing is well matched to the 4-5 mtpa
processing rate currently envisaged for the Sukari Gold Project. The acquisition
represented a key step forward in bringing the Sukari Gold Project into
production. It is expected that the Kori Kollo plant will arrive in Egypt in the
third quarter of 2007.
In November 2006, another upgrade of the resource modelling and grade estimation
of the Sukari geological resource was completed to JORC standards by independent
resource consultants, Hellman & Schofield. The gold resource increased to 167.18
Mt @ 1.43 g/t Au for 7.70 Moz Au at a 0.5 g/t cu-off grade.
Several key personnel appointments were made during the half-year, including a
new Project Manager, Robert (Bob) Sinclair, a Construction Manager, Peter Evans
and a Chief Financial Officer, Mark Smith. Additional project and construction
roles have and are being recruited for on an on going basis as the company
prepares for construction activity to commence at the Sukari Gold Project in the
second half of the financial year.
In January 2007, the Ministry of Petroleum & Mineral Resources (EMRA) and the
International Finance Corporation (IFC), the private sector arm of the World
Bank Group, signed an agreement for a technical assistance program to review and
reform Egypt's legal and taxation policy framework for private sector mining
investments. Managed by the IFC's technical assistance unit in the Middle East
and North Africa, the joint project will undertake a review and define specific
policy recommendations for the development of the Egyptian mining industry with
particular focus on the legal, fiscal and institutional framework. Egypt's
government wishes to liberalise the country's mining industry to attract more
domestic and foreign investment. The existing policy framework requires further
improvements for Egypt to be able to compete internationally for mining
investment. The move by the IFC and EMRA is seen as very positive for Egypt and
the Company is supportive of this initiative.
The Company announced in its Quarterly Report to the Australian Stock Exchange
in January 2007 that Westwind Partners, a Canadian financial services and
broking company, had been engaged to work towards a full Toronto Stock Exchange
(TSX) listing to complement the existing Alternative Investment Market (AIM) and
Australian Stock Exchange (ASX) listings. The Company believes that the North
American capital markets will embrace the advanced stage exploration and
development activities of a project the size of Sukari, and as such, the TSX
listing should add value for all shareholders.
In early February 2007, a further upgrade of the resource modelling and grade
estimation of the Sukari geological resource was completed to JORC standards by
independent resource consultants, Hellman & Schofield. The gold resource
increased to 174.20 Mt @ 1.47 g/t Au for 8.26 Moz Au at a 0.5 g/t cu-off grade -
a 181% increase (5.32 Moz) since the project drilling recommenced in May 2005
and at an impressive cost to shareholders of only on average US$4 per resource
ounce.
On 19 February 2007, the Company announced that the DFS into the Sukari Gold
Project had been successfully completed and following this, the board of
directors gave formal approval for the development of the Project.
Shareholders are referred to the Company's website (www.centamin.com) for
further details.
AUDITOR'S INDEPENDENCE DECLARATION
The auditor's independence declaration is included on page 3 of the half-year
report.
Signed in accordance with a resolution of the directors made pursuant to s306 of
the Corporations Act 2001.
On behalf of the Directors
Sami El-Raghy
Chairman
Perth, 27 February 2007
Deloitte Touche Tohmatsu
A.C.N. 74 490 121 060
Woodside Plaza
Level 14
240 St Georges Terrace
Perth WA 6000
GPO Box A46
Perth WA 6837 Australia
DX 206
Tel: +61 (0) 8 9365 7000
Fax: +61 (0) 8 9365 7001
www.deloitte.com.au
The Board of Directors
Centamin Egypt Limited
57 Kishorn Road
Mt Pleasant 6153
27 February 2007
Dear Board Members
Centamin Egypt Limited
In accordance with section 307C of the Corporations Act 2001, I am pleased to
provide the following declaration of independence to the directors of Centamin
Egypt Limited.
As lead audit partner for the review of the financial statements of Centamin
Egypt Limited for the financial half-year ended 31 December 2006, I declare that
to the best of my knowledge and belief, there have been no contraventions of:
(i) the auditor independence requirements of the Corporations Act 2001 in
relation to the review; and
(ii) any applicable code of professional conduct in relation to the review.
Yours sincerely
DELOITTE TOUCHE TOHMATSU
KEITH JONES
Partner
Chartered Accountants
Deloitte Touche Tohmatsu
A.C.N. 74 490 121 060
Woodside Plaza
Level 14
240 St Georges Terrace
Perth WA 6000
GPO Box A46
Perth WA 6837 Australia
DX 206
Tel: +61 (0) 8 9365 7000
Fax: +61 (0) 8 9365 7001
www.deloitte.com.au
Independent Auditor's Review Report
to the members of Centamin Egypt Limited
Report on the Half-Year Financial Report
We have reviewed the accompanying half-year financial report of Centamin Egypt
Limited, which comprises the balance sheet as at 31 December 2006, and the
income statement, cash flow statement, statement of changes in equity for the
half-year ended on that date, selected explanatory notes and the directors'
declaration of the consolidated entity comprising the company and the entities
it controlled at the end of the half-year or from time to time during the
half-year, as set out on pages 6 to 15.
Directors' Responsibility for the Half-Year Financial Report
The directors of the company are responsible for the preparation and fair
presentation of the half-year financial report in accordance with Australian
Accounting Standards (including the Australian Accounting Interpretations) and
the Corporations Act 2001. This responsibility includes designing, implementing
and maintaining internal control relevant to the preparation and fair
presentation of the half-year financial report that is free from material
misstatement, whether due to fraud or error; selecting and applying appropriate
accounting policies; and making accounting estimates that are reasonable in the
circumstances.
Auditor's Responsibility
Our responsibility is to express a conclusion on the half-year financial report
based on our review. We conducted our review in accordance with Auditing
Standard on Review Engagements ASRE 2410 Review of an Interim Financial Report
Performed by the Independent Auditor of the Entity, in order to state whether,
on the basis of the procedures described, we have become aware of any matter
that makes us believe that the financial report is not in accordance with the
Corporations Act 2001 including: giving a true and fair view of the consolidated
entity's financial position as at 31 December 2006 and its performance for the
half-year ended on that date; and complying with Accounting Standard AASB 134
Interim Financial Reporting and the Corporations Regulations 2001. As the
auditor of Centamin Egypt Limited, ASRE 2410 requires that we comply with the
ethical requirements relevant to the audit of the annual financial report.
A review of a half-year financial report consists of making enquiries, primarily
of persons responsible for financial and accounting matters, and applying
analytical and other review procedures. A review is substantially less in scope
than an audit conducted in accordance with Australian Auditing Standards and
consequently does not enable us to obtain assurance that we would become aware
of all significant matters that might be identified in an audit. Accordingly, we
do not express an audit opinion.
Auditor's Independence Declaration
In conducting our review, we have complied with the independence requirements of
the Corporations Act 2001.
Conclusion
Based on our review, which is not an audit, we have not become aware of any
matter that makes us believe that the half-year financial report of Centamin
Egypt Limited is not in accordance with the Corporations Act 2001, including:
(a) giving a true and fair view of the consolidated entity's financial
position as at 31 December 2006 and of its performance for the half-year
ended on that date; and
(b) complying with Accounting Standard AASB 134 Interim Financial Reporting
and the Corporations Regulations 2001.
DELOITTE TOUCHE TOHMATSU
KEITH JONES
Partner
Chartered Accountants
Perth, 27 February 2007
DIRECTORS' DECLARATION
________________________________________________________________________________
The directors declare that:
a) In the directors' opinion, there are reasonable grounds to believe that the
disclosing entity will be able to pay its debts as and when they become due
and payable; and
b) In the directors' opinion, the attached financial statements and notes
thereto are in accordance with the Corporations Act 2001, including
compliance with accounting standards and giving a true and fair view of the
financial position and performance of the consolidated entity.
Signed in accordance with a resolution of the directors made pursuant to s303(5)
of the Corporations Act 2001.
On behalf of the Directors
Sami El-Raghy
Chairman
Perth, 27 February 2007
CONDENSED CONSOLIDATED INCOME STATEMENT
for the half-year ended 31 December 2006
______________________________________________________________________________
Consolidated
Note Half Year Ended Half Year Ended
31 Dec 2006 31 Dec 2005
$ $
Interest income 1,296,903 416,095
Profit on sale of asset 530,257 -
Salaries, directors fees & (421,697) (264,087)
superannuation
Foreign exchange loss (124,429) (51,705)
Accounting, audit & legal fees (58,899) (13,480)
Consulting Fees (110,637) (35,207)
Promotional expenses (103,825) (80,739)
Other expenses from ordinary activities (179,045) (82,549)
Travelling expenses (279,960) (133,032)
Listing & share registry fees (73,669) (58,178)
Office rent (27,142) (26,265)
Telephone expenses (20,459) (15,376)
Annual report expenses (6,139) (17,610)
Depreciation (13,052) (12,211)
Employee option expense (230,172) (158,035)
______________________________
Profit/(Loss) for the period 178,035 (532,379)
______________________________
Profit/(Loss) attributable to equity 178,035 (532,379)
holders of the parent
==============================
Earnings Per Share
From continuing and discontinued
operations:
- Basic (cents per share) 0.011 (0.036)
- Diluted (cents per share) 0.022 (0.036)
From continuing operations:
- Basic (cents per share) 0.011 (0.036)
- Diluted (cents per share) 0.022 (0.036)
The consolidated income statement is to be read in conjunction with the notes to
and forming part of the half-yearly financial statements on pages 11 to 15.
CONDENSED CONSOLIDATED BALANCE SHEET
as at 31 December 2006
Consolidated
31 Dec 2006 30 Jun 2006
Note $ $
CURRENT ASSETS
Cash and cash equivalents 40,014,360 54,493,427
Trade and other receivables 512,655 183,004
Other 170,951 113,399
______________________________
Total current assets 40,697,966 54,789,830
______________________________
NON-CURRENT ASSETS
Investments accounted for using the 6 4,728 -
equity method
Property, plant and equipment 14,723,596 1,070,101
Exploration and evaluation expenditure 49,678,977 41,388,637
______________________________
Total non-current assets 64,407,301 42,458,738
______________________________
Total assets 105,105,267 97,248,568
______________________________
CURRENT LIABILITIES
Trade and other payables 7,908,345 861,259
Provisions 4 411,875 325,929
______________________________
Total current liabilities 8,320,220 1,187,188
______________________________
NON-CURRENT LIABILITIES
Trade and other payables 190,035 205,448
______________________________
Total non-current liabilities 190,035 205,448
______________________________
Total liabilities 8,510,255 1,392,636
______________________________
Net assets 96,595,012 95,855,932
==============================
EQUITY
Issued capital 115,674,918 115,344,046
Reserves 3,578,822 3,339,601
Accumulated losses (22,658,728) (22,827,715)
______________________________
Total equity 96,595,012 95,855,932
==============================
The consolidated balance sheet is to be read in conjunction with the notes to
and forming part of the half-yearly financial statements on pages 11 to 15.
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the half-year ended 31 December 2006
________________________________________________________________________________
Issued General Share Accumulated Total
Capital Reserve Options Losses
Reserve
$ $ $ $ $
BALANCE AT 1 JUL 2005 68,602,890 2,809,287 63,504 (23,847,593) 47,628,088
Loss for the period - - - (532,379) (532,379)
Share options exercised 130,250 - - - 130,250
Cost of share based - - 158,035 - 158,035
payments
________________________________________________________
BALANCE AT 31 DEC 2005 68,733,140 2,809,287 221,539 (24,379,972) 47,383,994
Profit for the period - - - 1,543,209 1,543,209
Share options exercised 208,933 - - - 208,933
Cost of share based - - 317,823 - 317,823
payments
Placement of 75,000,000 46,401,973 - - - 46,401,973
shares @ 27.5p (net of
fees)
Transfer to retained - - (9,048) 9,048 -
earnings
_________________________________________________________
BALANCE AT 30 JUN 2006 115,344,046 2,809,287 530,314 (22,827,715) 95,855,932
FX difference on 68 - - - 68
Placement in April 2006
Loss for the period - - - 178,035 178,035
Share options exercised 330,804 - - - 330,804
Cost of share based - - 230,173 - 230,173
payments
Transfer to retained - - 9,048 (9,048) -
earnings
__________________________________________________________
BALANCE AT 31 DEC 2006 115,674,918 2,809,287 769,535 (22,658,728) 96,595,012
__________________________________________________________
The consolidated statement of changes in equity is to be read in conjunction
with the notes to and forming part of the half-yearly financial statements on
pages 11 to 15.
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
for the half-year ended 31 December 2006
Consolidated
Half-year Half-year
Ended Ended
31 Dec 2006 31 Dec 2005
$ $
CASH FLOWS FROM OPERATING
ACTIVITIES
Payments to suppliers and employees (1,392,850) (720,859)
___________________________
Net cash used in operating activities (1,392,850) (720,859)
___________________________
CASH FLOWS FROM INVESTING
ACTIVITIES
Payment for purchases of property, plant & (6,408,254) (248,921)
equipment
Payments for exploration (8,603,223) (4,320,204)
Interest received 1,296,903 416,095
Proceeds from sale of property, plant & 421,982 5,665
equipment
___________________________
Net cash used in investing activities (13,292,660) (4,147,365)
___________________________
CASH FLOWS FROM FINANCING
ACTIVITIES
Proceeds from the issues of equity 330,804 130,250
securities
___________________________
Net cash provided by financing activities 330,804 130,250
___________________________
Net decrease in cash and cash equivalents (14,354,638) (4,737,974)
Effects of exchange rate changes on the (124,429) (51,705)
balance of cash held in foreign currencies
Cash and cash equivalents at the beginning 54,493,427 17,984,972
of the period
___________________________
Cash and cash equivalents at the end of 40,014,360 13,195,293
the period
===========================
The consolidated cash flow statement is to be read in conjunction with the notes
to and forming part of the half-yearly financial statements on pages 11 to 15.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
1. Significant accounting policies
STATEMENT OF COMPLIANCE
The half-year financial report is a general purpose financial report prepared in
accordance with the Corporations Act 2001 and AASB 134 Interim Financial
Reporting. Compliance with AASB 134 ensures compliance with International
Finance Reporting Standard IAS 34 Interim Financial Reporting. The half-year
financial report does not include notes of the type normally included in an
annual financial report and should be read in conjunction with the most recent
annual financial report.
BASIS OF PREPARATION
The condensed financial statements have been prepared on the basis of historical
cost, except for the revaluation of certain non-current assets and financial
instruments. Cost is based on the fair values of the consideration given in
exchange for assets. All amounts are presented in Australian dollars, unless
otherwise noted.
The accounting policies and methods of computation adopted in the preparation of
the half-year financial report are consistent with those adopted and disclosed
in the company's 2006 annual financial report for the financial year ended 30
June 2006.
The significant policies which have been adopted in the preparation of these
financial statements are:
(A) ACCOUNTS PAYABLE
Trade payables and other accounts payable are recognised when the consolidated
entity becomes obliged to make future payments resulting from the purchase of
goods and services.
(B) DEBT AND EQUITY INSTRUMENTS ISSUED BY THE COMPANY
Debt and equity instruments are classified as either liabilities or as equity in
accordance with the substance of the contractual arrangement.
(C) EXPLORATION, EVALUATION AND DEVELOPMENT EXPENDITURE
Exploration and evaluation expenditure is brought to account at cost.
Ongoing costs of acquisition, exploration and evaluation are capitalised in
relation to each separate area of interest and in respect of which:
i. such costs are expected to be recouped through successful development and
exploitation of the area or alternatively by their sale, or
ii. exploration and evaluation activities in the area have not yet reached the
stage which permits a reasonable assessment of the existence of economically
recoverable reserves, and active and significant operations are continuing.
The Directors review the carrying value of each area of interest at balance date
and exploration expenditure which no longer satisfies the above policy is
written off.
All exploration permits are treated as separate areas of interest.
Once an area of interest enters a development phase, all capitalised
acquisition, exploration and evaluation expenditure is transferred to
development costs within property, plant and equipment.
D) FOREIGN CURRENCY
All foreign currency transactions during the period have been brought to account
using the exchange rate in effect at the date of the transaction. Foreign
currency monetary items at balance date are translated at the exchange rate
existing at that date.
Non-monetary assets and liabilities carried at fair value that are denominated
in foreign currencies are translated at the rates prevailing at the date when
the fair value was determined. All exchange differences are brought to account
in the consolidated income statement in the financial period in which they
arise.
(E) GOODS AND SERVICES TAX
Revenues, expenses and assets are recognised net of the amount of goods and
services tax (GST), except:
i. Where the amount of GST incurred is not recoverable from the taxation
authority, it is recognised as part of the cost of acquisition of an asset
or as part of an item of expense; or
ii. For receivables and payables which are recognised inclusive of GST.
The net amount of GST recoverable from, or payable to, the taxation authority is
included as part of receivables or payables.
(F) IMPAIRMENT OF ASSETS
At each reporting date, the consolidated entity reviews the carrying amounts of
its tangible and intangible assets to determine whether there is any indication
that those assets have suffered an impairment loss. If any such indication
exists, the recoverable amount of the asset is estimated in order to determine
the extent of the impairment loss (if any). Where the asset does not generate
cash flows that are independent from other assets, the consolidated entity
estimates the recoverable amount of the cash-generating unit to which the asset
belongs.
Recoverable amount is the higher of fair value less costs to sell and value in
use. In assessing value in use, the estimated future cash flows are discounted
to their present value using a pre-tax discount rate that reflects current
market assessment of the time value of money and the risks specific to the asset
for which the estimates of future flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to
be less than its carrying amount, the carrying amount of the asset (cash-
generating unit) is reduced to its recoverable amount. Each cash generated unit
is determined on an area of interest basis.
Where an impairment loss subsequently reverses, the carrying amount of the asset
(cash-generating unit) is increased to the revised estimate of its recoverable
amount, but only to the extent that the increased carrying amount does not
exceed the carrying amount that would have been determined had no impairment
loss been recognised for the asset (cash generating unit) in prior years.
(I) LOANS AND RECEIVABLES
Trade receivables, loans, and other receivables are recorded at amortised cost
less impairment.
(J) PLANT AND EQUIPMENT
Plant and equipment, and equipment under finance lease are stated at cost less
accumulated depreciation and impairment. Plant and equipment will include
capitalised development expenditure. Cost includes expenditure that is directly
attributable to the acquisition of the item as well as the estimated cost of
abandonment. In the event that settlement of all or part of the purchase
consideration is deferred, cost is determined by discounting the amounts payable
in the future to their present value as at the date of acquisition.
Depreciation is provided on property, plant and equipment. Depreciation of
capitalised development expenditure will be provided on a unit of production
basis over recoverable reserves, whilst on other fixed assets are calculated on
a straight line basis so as to write off the net cost or other re-valued amount
of each asset over its expected useful life to its estimated residual value.
The estimated useful lives, residual values and depreciation method are reviewed
at the end of each annual reporting period.
The following estimated useful lives are used in the calculation of depreciation:
Plant & Equipment & Office Furniture - 4-10 years
Motor Vehicles - 2 -8 years
(K) PRINCIPLES OF CONSOLIDATION
The consolidated financial statements are prepared by combining the financial
statements of all the entities that comprise the consolidated entity, being the
company (the parent entity) and its subsidiaries as defined in Accounting
Standard AASB 127 Consolidated and Separate Financial Statements. Consistent
accounting policies are employed in the preparation and presentation of the
consolidated financial statements.
The consolidated financial statements include the information and results of
each subsidiary from the date on which the company obtains control and until
such time as the company ceases to control such entity.
In preparing the consolidated financial statements, all intercompany balances
and transactions, and unrealised profits arising within the consolidated entity
are eliminated in full.
(L) REVENUE RECOGNITION
Interest revenue is recognised on a time proportionate basis that takes into
account the effective yield on the financial asset.
(M) SHARE-BASED PAYMENTS
Employee share options that vested before 1 January 2005 have not been expensed.
The shares are recognised when the options are exercised and the proceeds are
allocated to share capital.
Equity-settled share-based payments granted after 7 November 2002 that were
unvested as of 01 January 2005, are measured at fair value at the date of grant.
Fair value is measured under the Black and Scholes model. The fair value
determined at the grant date of the equity-settled share-based payments is
expensed on a straight-line basis over the vesting period, based on the
consolidated entity's estimate of shares that will eventually vest.
(N) SUPERANNUATION FUND
The Company contributes to, but does not participate in, compulsory
superannuation funds on behalf of the Employees and Directors in respect of
salaries and directors' fees paid. Contributions are charged against income as
they are made.
(O) TAXATION
Current tax
Current tax is calculated by reference to the amount of income taxes payable or
recoverable in respect of the taxable profit or tax loss for the period. It is
calculated using tax rates and tax laws that have been enacted or substantively
enacted by reporting date. Current tax for current and prior periods is
recognised as a liability (or asset) to the extent that it is unpaid (or
refundable).
Deferred tax
Deferred tax is accounted for using the comprehensive balance sheet liability
method in respect of temporary differences arising from differences between the
carrying amount of assets and liabilities in the financial statements and the
corresponding tax base of those items.
In principle, deferred tax liabilities are recognised for all taxable temporary
differences. Deferred tax assets are recognised to the extent that it is
probable that sufficient taxable amounts will be available against which
deductible temporary differences or unused tax losses and tax offsets can be
utilised. However, deferred tax assets and liabilities are not recognised if the
temporary differences giving rise to them arise from the initial recognition of
assets and liabilities (other than as a result of a business combination) which
affects neither taxable income nor accounting profit.
Furthermore, a deferred tax liability is not recognised in relation to taxable
temporary differences arising from goodwill.
Deferred tax assets and liabilities are offset when they relate to income taxes
levied by the same taxation authority and the company/consolidated entity
intends to settle its current tax assets and liabilities on a net basis.
Current and deferred tax for the period
Current and deferred tax is recognised as an expense or income in the income
statement, except when it relates to items credited or debited directly to
equity, in which case the deferred tax is also recognised directly in equity, or
where it arises from the initial accounting for a business combination, in which
case it is taken into account in the determination of goodwill or excess.
2. Segment reporting
Primary reporting - Business Segments
The economic entity is engaged in the business of exploration for precious and
base metals only, which is characterised as one business segment only. As the
economic entity has only one business segment, all the necessary reporting
disclosures are disclosed in the notes in the annual financial statements.
Secondary reporting - Geographical Segments
The principal activity of the economic entity during the year was the
exploration for precious and base metals in Egypt and funding is sourced from
Australia.
3. Events subsequent to balance date
In February 2007 the Company entered into a Sale & Purchase Agreement with IC
ICTAS, a company registered in Turkey, to buy a second hand heavy fuel oil power
generation plant located at Isparta in Turkey for US$9,500,000. Payment will be
via a series of progressive payments secured by a letter of credit established
by the Company for this purchase. An initial non-refundable deposit of
US$1,900,000 was paid upon entering into the contract. The impact of this
transaction is not included in this financial report.
4. Employee benefits
Consolidated
31 December 30 June
2006 2006
$ $
The aggregate employee benefit liability
recognised and included in the financial
statements is as follows:
Provision for employee benefits:
Current 411,875 325,929
______________________
5. Related party transactions
Mr S El-Raghy and Mr J El-Raghy are also directors and shareholders of El-Raghy
Kriewaldt Pty Ltd ("El-Raghy Kriewaldt"). El-Raghy Kriewaldt provides office
premises to the Company. All dealings with El-Raghy Kriewaldt are in the
ordinary course of business and on normal terms and conditions. Rent and office
outgoings paid to El-Raghy Kriewaldt during the half-year were $13,747 (2005:
$13,263).
Mr S El-Raghy provides office premises in Alexandria, Egypt to the Company. All
dealings with Mr S El-Raghy are in the ordinary course of business and on normal
terms and conditions. Rent and office outgoings paid to Mr S El-Raghy during the
half-year were $5,930 (2005: $4,787).
A director of the Company, Mr C Cowden has an interest as a director and
controlling shareholder of Cowden Limited, Insurance Brokers. This Company
provides insurance broking services to the Company. All dealings with this
Company are in the ordinary course of business and on normal terms and
conditions. Premiums paid to Cowden Limited during the half-year were $87,336
(2005: $12,792).
During the half-year the Company provided funds to and received funding from
subsidiaries.
6. Investments accounted for using the equity method
Consolidated
31 December 31 December
2006 2005
$ $
Investments in jointly controlled entities 4,728 -
7. Issuances of equity securities
During the half-year reporting period, Centamin Egypt Limited issued 1,135,000
ordinary shares for $330,804 on exercise of 1,135,000 share options issued under
the Employee Option Plan 2002.
During the half-year reporting period, Centamin Egypt Limited issued 500,000
ordinary shares for $130,250 on exercise of 500,000 share options issued under
the Employee Option Plan 2002.
There were no other movements in the ordinary share capital or other issued
share capital of the company in the current or prior half-year reporting period.
This information is provided by RNS
The company news service from the London Stock Exchange
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Centamin (LSE:CEY)
Gráfica de Acción Histórica
De Jul 2023 a Jul 2024
