TIDMRMLA
RNS Number : 6456I
Rusina Mining NL
16 March 2010
For Immediate Release
16 March 2010
Rusina Mining NL
Interim Audited Financial Report for the half-year ended 31 December 2009
The directors of Rusina Mining NL ("Rusina" or "the Company") present their
report together with the consolidated financial report for the half-year ended
31 December 2009 and the review report thereon.
A copy of the report can be viewed and downloaded from the Company's website,
www.rusina.com.au, or as a link to this announcement:
http://www.rns-pdf.londonstockexchange.com/rns/6456I_-2010-3-16.pdf
Directors
The directors of the Company at any time during or since the end of the
half-year are:
Name Period of directorship
Non Executive
Mr Gordon Getley (Chairman) Director since 27 February 1990
Mr Philip Fillis Director since 1 September
2006
Mr Antony Butler Director since 18 October 2007
Executive
Mr Robert Gregory Director since 29 September 2005 -
appointed Managing Director & Chief Executive Officer 7 November 2005
Mr Mark Hanlon Appointed Alternative Director to
Mr Antony Butler on 20 November 2009 - appointed Company Secretary &
Chief Financial Officer 26 September 2006
Review of operations
World equity and commodity markets continued to recover during the first few
months of the period under review before stabilizing during the latter part. The
Company continued to progress the Acoje nickel heap leach feasibility study with
the successful completion of the Trial Heap Leach facility. The funding of this
project is the responsibility of our joint venture partner, European Nickel plc,
which is spending US$10m to earn a 40% interest in the Acoje nickel project.
Nickel Heap Leach
The Acoje nickel heap leach trial pad and pilot plant was officially opened on 9
December 2009 by Australian Ambassador to the Philippines, Rod Smith.
This is the first pilot plant in the Philippines to trial heap leaching
technology on nickel laterites.
The trial heap will be constructed at the same height as the full commercial
operation and is designed to prove the heap percolation and leach rates on a
full scale basis as well as demonstrating the rain control methodology. In
addition the trial facility will showcase the clean, safe and environmentally
friendly nature of the process to the government and local stakeholders.
The crusher was commissioned and 3,000 tonnes of nickel laterite ore, a mixture
of limonite and saprolite, was completed within the required specifications of
95%<50mm on the first pass.
All electrical work on the agglomerator, binder plant and associated monitoring
equipment has been completed and the agglomerator and associated conveyers are
now fully commissioned. All water and reticulation equipment required for
agglomeration and stacking is in place.
Subsequent to the end of the half-year the downstream processing plant shed was
erected. The Resin in Pulp, Ion Exchange and Centrifuge installation will occur
in the first quarter of 2010.
Leaching will commence once the pad has been stacked and irrigation pipes placed
over the heap. An HDPE raincoat will cover both the pad and the ponds.
Direct Ship Operations
Shipping of nickel laterite ore was formally suspended at the beginning of the
period due to low nickel prices and a significant reduction in demand from
Chinese buyers.
In late December 2009, DMCI Mining ('DMCI') notified the Company that, due to
higher nickel prices and buyer interest for higher grade nickel laterite ore,
they intended to resume shipments in the first quarter of 2010.
Subsequent to the end of the half-year the Company modified the existing DSO
agreement with DMCI to enable the mining to recommence. In accordance with the
terms of the modified arrangement, DMCI shall continue to be responsible for all
mining, marketing, transport and capital costs of up to 200,000 tonnes high
grade ore (>2%Ni) at a fixed operating cost whist providing a 50% share of
profits to Rusina on a shipment by shipment basis. There is an agreed minimum
profit before a shipment can take place.
In addition, the modified arrangement includes a substantially reduced fixed
incremental cost for lower grade ores, again on a minimum agreed profit on a
ship by ship basis. This modified arrangement greatly reduces the risks to both
DMCI and Rusina in the volatile DSO market whilst taking advantage of favourable
marketing conditions as they arise.
Exploration
The Company undertook the minimum required expenditure in its early phase
exploration tenements and permits due to the adverse nature of the economic
environment and the need to concentrate on furthering those projects most likely
to achieve early cash flows.
Corporate Activity
In mid September 2009, the Company announced the raising of approximately $5.7
million through the placement of 57,760,800 ordinary shares at 5.25 pence per
share to clients of UK broker Mirabaud Securities Limited. The placement was
completed in two tranches with the first tranche completed under the 15% rule
while the second tranche of 21,000,000 shares was completed in late October 2009
after being passed by a vote of shareholders at a general meeting of the
Company.
During the period Montemina Resource Corporation, an associate entity of the
Company concluded an agreement with DMCI Mining to acquire DMCI's economic
interest in the Acoje and Zambales Chromite Mining Corporation properties. In
addition Montemina has entered into an agreement to purchase the DMCI owned port
at Santa Cruz.
A total of 20,355,889 unquoted options expired unexercised during the half-year.
The total number of ordinary shares on issue as of 31 December 2009 was
302,963,515.
Subsequent to the end of the half-year the Company announced that it had entered
into a Merger Implementation Agreement with its joint venture partner in the
Acoje project, European Nickel plc. Under the terms of the merger European
Nickel will offer four of its shares for every five Rusina shares to be effected
by way of a Scheme of Arrangement.
Robert Gregory
Managing Director
15 March 2010
Contacts: Mark Hanlon Rusina Mining Tel:
+61 8 9226 1111
Roland Cornish Beaumont Cornish Tel:
+44 (0) 207 628 3396
In the opinion of the directors of Rusina Mining NL ("the Company"):
1. the financial statements and notes set out on pages 8 to 16, are in
accordance with the Corporations Act 2001 including:
(a) giving a true and fair view of the consolidated entities financial
position as at 31 December 2009 and of its performance for the half-year ended
on that date; and
(b) complying with Australian Accounting Standard AASB 134 Interim
Financial Reporting and the Corporations Regulations 2001; and
2. there are reasonable grounds to believe that the Company will be
able to pay its debts as and when they become due and payable.
Signed in accordance with a resolution of the directors made pursuant to
s.303(5) of the Corporations Act 2001.
Robert Gregory
Managing Director
15 March 2010
Condensed consolidated statement of comprehensive income
+--------------------------------+----+-------------+-------------+
| For the half-year ended 31 | | Consolidated |
| December 2009 | | Half-year ended |
+--------------------------------+----+---------------------------+
| | | 31 Dec | 31 Dec |
| | | 2009 | 2008 |
| | | $ | $ |
+--------------------------------+----+-------------+-------------+
| Revenue | | - | 68,687 |
+--------------------------------+----+-------------+-------------+
| Total revenue | | - | 68,687 |
+--------------------------------+----+-------------+-------------+
| | | | |
+--------------------------------+----+-------------+-------------+
| Share of loss of equity | | (3,203) | (27,307) |
| accounted investees | | | |
+--------------------------------+----+-------------+-------------+
| Share of loss from joint | | - | (258,759) |
| venture | | | |
+--------------------------------+----+-------------+-------------+
| Administration expenses | | (2,306,475) | (2,541,780) |
+--------------------------------+----+-------------+-------------+
| Finance income | | 30,870 | 1,170,963 |
+--------------------------------+----+-------------+-------------+
| Finance costs | | (117,549) | - |
+--------------------------------+----+-------------+-------------+
| Depreciation | | (61,935) | (87,785) |
+--------------------------------+----+-------------+-------------+
| Loss on sale of assets | | - | (1,232) |
+--------------------------------+----+-------------+-------------+
| Reversal of impairment of | | 51,113 | - |
| loans with equity accounted | | | |
| investees | | | |
+--------------------------------+----+-------------+-------------+
| Change in fair value of | | - | 243,276 |
| derivative liability | | | |
+--------------------------------+----+-------------+-------------+
| Loss before income tax | | (2,407,179) | (1,433,937) |
+--------------------------------+----+-------------+-------------+
| Income tax expense | | - | - |
+--------------------------------+----+-------------+-------------+
| Loss for the period | | (2,407,179) | (1,433,937) |
+--------------------------------+----+-------------+-------------+
| Other comprehensive | | | |
| income/(loss) | | | |
+--------------------------------+----+-------------+-------------+
| Foreign currency translation | | (780,929) | 3,896,692 |
| differences for foreign | | | |
| operations | | | |
+--------------------------------+----+-------------+-------------+
| Total other comprehensive | | (780,929) | 3,896,692 |
| income/(loss) | | | |
+--------------------------------+----+-------------+-------------+
| Total comprehensive | | (3,188,108) | 2,462,755 |
| income/(loss) for the period | | | |
+--------------------------------+----+-------------+-------------+
| Loss attributable to: | | | |
+--------------------------------+----+-------------+-------------+
| Owners of the Company | | (1,972,174) | (1,464,737) |
+--------------------------------+----+-------------+-------------+
| Non-controlling interest | | (435,005) | 30,800 |
+--------------------------------+----+-------------+-------------+
| Loss for the period | | (2,407,179) | (1,433,937) |
+--------------------------------+----+-------------+-------------+
| Total comprehensive | | | |
| income/(loss) attributable to: | | | |
+--------------------------------+----+-------------+-------------+
| Owners of the Company | | (2,753,103) | 2,431,955 |
+--------------------------------+----+-------------+-------------+
| Non-controlling interest | | (435,005) | 30,800 |
+--------------------------------+----+-------------+-------------+
| Total comprehensive | | (3,188,108) | 2,462,755 |
| income/(loss) for the period | | | |
+--------------------------------+----+-------------+-------------+
| Loss per share | | | |
+--------------------------------+----+-------------+-------------+
| Basic and diluted (cents per | | 0.72 | 0.59 |
| share) | | | |
+--------------------------------+----+-------------+-------------+
Condensed consolidated statement of financial position
+-------------------------------------+------+--------------+--------------+
| As at 31 December 2009 | | Consolidated |
+-------------------------------------+------+-----------------------------+
| |Note | 31 Dec | 30 June |
| | | 2009 | 2009 |
| | | $ | $ |
+-------------------------------------+------+--------------+--------------+
| Current assets | | | |
+-------------------------------------+------+--------------+--------------+
| Cash and cash equivalents | | 4,944,597 | 2,896,519 |
+-------------------------------------+------+--------------+--------------+
| Trade and other receivables | | 1,685,350 | 978,733 |
+-------------------------------------+------+--------------+--------------+
| Total current assets | | 6,629,947 | 3,875,252 |
+-------------------------------------+------+--------------+--------------+
| Non-current assets | | | |
+-------------------------------------+------+--------------+--------------+
| Investments in equity accounted | | 55,986 | 84,392 |
| investees | | | |
+-------------------------------------+------+--------------+--------------+
| Other financial assets | | 44,272 | 34,971 |
+-------------------------------------+------+--------------+--------------+
| Property, plant and equipment | | 499,791 | 307,764 |
+-------------------------------------+------+--------------+--------------+
| Exploration, evaluation and | 6 | 14,737,346 | 14,917,462 |
| development | | | |
+-------------------------------------+------+--------------+--------------+
| Total non-current assets | | 15,337,395 | 15,344,589 |
+-------------------------------------+------+--------------+--------------+
| Total assets | | 21,967,342 | 19,219,841 |
+-------------------------------------+------+--------------+--------------+
| Current liabilities | | | |
+-------------------------------------+------+--------------+--------------+
| Trade and other payables | | 2,480,041 | 3,214,537 |
+-------------------------------------+------+--------------+--------------+
| Employee benefits | | 91,127 | 69,118 |
+-------------------------------------+------+--------------+--------------+
| Provisions | | 24,338 | 17,102 |
+-------------------------------------+------+--------------+--------------+
| Total current liabilities | | 2,595,506 | 3,300,757 |
+-------------------------------------+------+--------------+--------------+
| | | | |
+-------------------------------------+------+--------------+--------------+
| Non-current liabilities | | | |
+-------------------------------------+------+--------------+--------------+
| Loans and borrowings | | 2,368,805 | 1,256,411 |
+-------------------------------------+------+--------------+--------------+
| Total non-current liabilities | | 2,368,805 | 1,256,411 |
+-------------------------------------+------+--------------+--------------+
| Total liabilities | | 4,964,311 | 4,557,168 |
+-------------------------------------+------+--------------+--------------+
| Net assets | | 17,003,031 | 14,662,673 |
+-------------------------------------+------+--------------+--------------+
| Equity | | | |
+-------------------------------------+------+--------------+--------------+
| Issued capital | 7 | 62,546,050 | 57,369,493 |
+-------------------------------------+------+--------------+--------------+
| Reserves | 8 | 3,546,990 | 4,332,843 |
+-------------------------------------+------+--------------+--------------+
| Accumulated losses | | (48,655,004) | (47,039,663) |
+-------------------------------------+------+--------------+--------------+
| Equity attributable to owners of | | 17,438,036 | 14,662,673 |
| the Company | | | |
+-------------------------------------+------+--------------+--------------+
| Non-controlling interest | | (435,005) | - |
+-------------------------------------+------+--------------+--------------+
| Total equity | | 17,003,031 | 14,662,673 |
+-------------------------------------+------+--------------+--------------+
Condensed consolidated statement of changes in equity
For the half-year ended 31 December 2009
+-----------------------------+------------+-------------+----------------+---------+--------------+--------------+-----------------+-------------+
| Consolidated | Issued | Foreign |Equity-settled | Option | Accumulated |Attributable |Non-controlling | Total |
| | capital | currency | employee |reserve | losses |to owners of | interest | $ |
| | $ |translation | benefits | $ | $ | the Company | $ | |
| | | reserve | reserve | | | $ | | |
| | | $ | $ | | | | | |
+-----------------------------+------------+-------------+----------------+---------+--------------+--------------+-----------------+-------------+
| Balance at 1 July 2008 | 56,877,493 | (884,564) | 4,051,144 | - | (44,904,360) | 15,139,713 | 39,615 | 15,179,328 |
+-----------------------------+------------+-------------+----------------+---------+--------------+--------------+-----------------+-------------+
| Total comprehensive income | | | | | | | | |
| for the period | | | | | | | | |
+-----------------------------+------------+-------------+----------------+---------+--------------+--------------+-----------------+-------------+
| Loss for the period | - | - | - | - | (1,464,737) | (1,464,737) | 30,800 | (1,433,937) |
+-----------------------------+------------+-------------+----------------+---------+--------------+--------------+-----------------+-------------+
| Other comprehensive income | | | | | | | | |
+-----------------------------+------------+-------------+----------------+---------+--------------+--------------+-----------------+-------------+
| Foreign currency | - | 3,896,692 | - | - | - | 3,896,692 | - | 3,896,692 |
| translation differences for | | | | | | | | |
| foreign operations | | | | | | | | |
+-----------------------------+------------+-------------+----------------+---------+--------------+--------------+-----------------+-------------+
| Total other comprehensive | - | 3,896,692 | - | - | - | 3,896,692 | - | 3,896,692 |
| income for the period | | | | | | | | |
+-----------------------------+------------+-------------+----------------+---------+--------------+--------------+-----------------+-------------+
| Total comprehensive income | - | 3,896,692 | - | - | (1,464,737) | 2,431,955 | 30,800 | 2,462,755 |
| for the period | | | | | | | | |
+-----------------------------+------------+-------------+----------------+---------+--------------+--------------+-----------------+-------------+
| Transactions with owners, | | | | | | | | |
| recorded directly in equity | | | | | | | | |
+-----------------------------+------------+-------------+----------------+---------+--------------+--------------+-----------------+-------------+
| Shares issued | 492,000 | - | - | - | - | 492,000 | - | 492,000 |
+-----------------------------+------------+-------------+----------------+---------+--------------+--------------+-----------------+-------------+
| Share-based payment | - | - | 306,700 | - | - | 306,700 | - | 306,700 |
| transactions | | | | | | | | |
+-----------------------------+------------+-------------+----------------+---------+--------------+--------------+-----------------+-------------+
| Initial recognition of | - | - | - | - | - | - | 124,990 | 124,990 |
| non-controlling interest | | | | | | | | |
+-----------------------------+------------+-------------+----------------+---------+--------------+--------------+-----------------+-------------+
| Transfer between | - | - | | - | 526,109 | - | - | - |
| equity-settled employee | | | (526,109) | | | | | |
| benefits reserve and | | | | | | | | |
| accumulated losses | | | | | | | | |
| following the lapse of | | | | | | | | |
| options | | | | | | | | |
+-----------------------------+------------+-------------+----------------+---------+--------------+--------------+-----------------+-------------+
| Balance at 31 December 2008 | 57,369,493 | 3,012,128 | 3,831,735 | - | (45,842,988) | 18,370,368 | 195,405 | 18,565,773 |
+-----------------------------+------------+-------------+----------------+---------+--------------+--------------+-----------------+-------------+
| | | | | | | | | |
+-----------------------------+------------+-------------+----------------+---------+--------------+--------------+-----------------+-------------+
| Balance at 1 July 2009 | 57,369,493 | 462,211 | 3,870,632 | - | (47,039,663) | 14,662,673 | - | 14,662,673 |
+-----------------------------+------------+-------------+----------------+---------+--------------+--------------+-----------------+-------------+
| Total comprehensive loss | | | | | | | | |
| for the period | | | | | | | | |
+-----------------------------+------------+-------------+----------------+---------+--------------+--------------+-----------------+-------------+
| Loss for the period | - | - | - | - | (1,972,174) | (1,972,174) | (435,005) | (2,407,179) |
+-----------------------------+------------+-------------+----------------+---------+--------------+--------------+-----------------+-------------+
| Other comprehensive loss | | | | | | | | |
+-----------------------------+------------+-------------+----------------+---------+--------------+--------------+-----------------+-------------+
| Foreign currency | - | (780,929) | - | - | - | (780,929) | - | (780,929) |
| translation differences for | | | | | | | | |
| foreign operations | | | | | | | | |
+-----------------------------+------------+-------------+----------------+---------+--------------+--------------+-----------------+-------------+
| Total other comprehensive | - | (780,929) | - | - | - | (780,929) | - | (780,929) |
| loss for the period | | | | | | | | |
+-----------------------------+------------+-------------+----------------+---------+--------------+--------------+-----------------+-------------+
| Total comprehensive loss | - | (780,929) | - | - | (1,972,174) | (2,753,103) | (435,005) | (3,188,108) |
| for the period | | | | | | | | |
+-----------------------------+------------+-------------+----------------+---------+--------------+--------------+-----------------+-------------+
| Transactions with owners, | | | | | | | | |
| recorded directly in equity | | | | | | | | |
+-----------------------------+------------+-------------+----------------+---------+--------------+--------------+-----------------+-------------+
| Shares issued (note 7) | 5,650,491 | - | - | - | - | 5,650,491 | - | 5,650,491 |
+-----------------------------+------------+-------------+----------------+---------+--------------+--------------+-----------------+-------------+
| Share issue costs (note 7) | (473,934) | - | - | - | - | (473,934) | - | (473,934) |
+-----------------------------+------------+-------------+----------------+---------+--------------+--------------+-----------------+-------------+
| Share-based payment | - | - | 194,747 | 157,162 | - | 351,909 | - | 351,909 |
| transactions (note 9) | | | | | | | | |
+-----------------------------+------------+-------------+----------------+---------+--------------+--------------+-----------------+-------------+
| Transfer between | - | - | | - | 356,833 | - | - | - |
| equity-settled employee | | | (356,833) | | | | | |
| benefits reserve and | | | | | | | | |
| accumulated losses | | | | | | | | |
| following the lapse of | | | | | | | | |
| options | | | | | | | | |
+-----------------------------+------------+-------------+----------------+---------+--------------+--------------+-----------------+-------------+
| Balance at 31 December 2009 | 62,546,050 | (318,718) | 3,708,546 | 157,162 | (48,655,004) | 17,438,036 | (435,005) | 17,003,031 |
+-----------------------------+------------+-------------+----------------+---------+--------------+--------------+-----------------+-------------+
Condensed consolidated statement of cash flows
+-------------------------------------+------+-------------+-------------+
| | | Consolidated |
+-------------------------------------+------+---------------------------+
| | | Half-year ended |
+-------------------------------------+------+---------------------------+
| |Note | 31 Dec | 31 Dec |
| | | 2009 | 2008 |
| | | $ | $ |
+-------------------------------------+------+-------------+-------------+
| Cash flows from operating | | | |
| activities | | | |
+-------------------------------------+------+-------------+-------------+
| Receipts from operations | | - | 68,687 |
+-------------------------------------+------+-------------+-------------+
| Payments to suppliers and employees | | (2,806,402) | (1,576,381) |
+-------------------------------------+------+-------------+-------------+
| Exploration, evaluation and | 6 | (733,421) | (2,685,225) |
| development | | | |
+-------------------------------------+------+-------------+-------------+
| Interest received | | 30,870 | 74,087 |
+-------------------------------------+------+-------------+-------------+
| Net cash used in operating | | (3,508,953) | (4,118,832) |
| activities | | | |
+-------------------------------------+------+-------------+-------------+
| Cash flows from investing | | | |
| activities | | | |
+-------------------------------------+------+-------------+-------------+
| Payments for property, plant and | | (271,778) | (30,675) |
| equipment | | | |
+-------------------------------------+------+-------------+-------------+
| Proceeds from disposal of property, | | - | 2,315 |
| plant and equipment | | | |
+-------------------------------------+------+-------------+-------------+
| Acquisition of other investments | | (301) | - |
+-------------------------------------+------+-------------+-------------+
| Loan advances from other entities | | 1,479,303 | - |
+-------------------------------------+------+-------------+-------------+
| Loan repayments to other entities | | (813,742) | (1,195) |
+-------------------------------------+------+-------------+-------------+
| Net cash provided by (used in) | | 393,482 | (29,555) |
| investing activities | | | |
+-------------------------------------+------+-------------+-------------+
| Cash flows from financing | | | |
| activities | | | |
+-------------------------------------+------+-------------+-------------+
| Proceeds from issues of equity | 7 | 5,650,491 | 492,000 |
| securities | | | |
+-------------------------------------+------+-------------+-------------+
| Payment for share issue costs | 7 | (226,772) | - |
+-------------------------------------+------+-------------+-------------+
| Repayment of borrowings | | (4,718) | - |
+-------------------------------------+------+-------------+-------------+
| Net cash provided by financing | | 5,419,001 | 492,000 |
| activities | | | |
+-------------------------------------+------+-------------+-------------+
| Net increase (decrease) in cash and | | 2,303,530 | (3,656,387) |
| cash equivalents | | | |
+-------------------------------------+------+-------------+-------------+
| Cash and cash equivalents at the | | 2,896,519 | 6,192,933 |
| beginning of the period | | | |
+-------------------------------------+------+-------------+-------------+
| Effects of exchange rate changes on | | (255,452) | 2,837,962 |
| the balance of cash held in foreign | | | |
| currencies | | | |
+-------------------------------------+------+-------------+-------------+
| Cash and cash equivalents at the | | 4,944,597 | 5,374,508 |
| end of the period | | | |
+-------------------------------------+------+-------------+-------------+
Notes to the condensed consolidated financial statements
For the half-year ended 31 December 2009
1. Reporting entity
Rusina Mining NL ("Rusina" or "the Company") is a public company listed on the
Australian Securities Exchange (trading under the symbol "RML") and the London
Alternative Investment Market (trading under the symbol "RMLA") and operating in
the Philippines.
The condensed consolidated interim financial statements of the Company as at and
for the half-year ended 31 December 2009 comprise the Company and its
subsidiaries (together referred to as the "consolidated entity") and the
consolidated entities interests in associates and jointly controlled entities.
2. Statement of compliance
These condensed consolidated interim financial statements have been prepared in
accordance with Corporations Act 2001 and AASB 134 Interim Financial Reporting.
Compliance with AASB 134 ensures compliance with International Financial
Reporting Standard IAS 34 Interim Financial Reporting. They do not include all
of information required for full annual financial statements, and should be read
in conjunction with the consolidated financial statements of the consolidated
entity as at and for the year ended 30 June 2009.
These condensed consolidated interim financial statements were approved by the
Board of Directors on 15 March 2010.
3. Significant accounting policies
The condensed consolidated interim 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. The Company is domiciled in
Australia and 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 2009 annual financial report for the financial year ended 30
June 2009, except for the impact of the Standards and Interpretations described
below. These accounting policies are consistent with Australian Accounting
Standards and with International Financial Reporting Standards.
The consolidated entity has adopted all of the new and revised Standards and
Interpretations issued by the Australian Accounting Standards Board ('the AASB')
that are relevant to their operation and effective for the current reporting
period.
New and revised Standards and Interpretations effective for the current
reporting period that are relevant to the consolidated entity include:
· AASB 3 Business Combinations
· AASB 8 Operating Segments
· AASB 101 Presentation of Financial Statements
* AASB 127 Consolidated and Separate Financial Statements
The adoption of these new and revised Standards and Interpretations has resulted
in changes to the consolidated entity's accounting policies in the following
areas.
Determination and presentation of operating segments
As of 1 January 2009 the consolidated entity determines and presents operating
segments based on the information that internally is provided to the Board of
Directors. This change in accounting policy is due to the adoption of AASB 8
Operating Segments. Previously operating segments were determined and presented
in accordance with AASB 114 Segment Reporting. The new accounting policy in
respect of segment operating disclosures is presented as follows.
Comparative segment information has been re-presented in conformity with the
transitional requirements of AASB 8. Since the change in accounting policy only
impacts presentation and disclosures aspects, there is no impact on earnings per
share.
An operating segment is a component of the consolidated entity that engages in
business activities from which it may earn revenues and incur expenses,
including revenues and expenses that relate to transactions with any of the
consolidated entity's other components. An operating segment's operating results
are reviewed regularly by the Board of Directors to make decisions about
resources to be allocated to the segment and assess its performance, and for
which discrete financial information is available.
Segment results that are reported to the Board of Directors include items
directly attributable to a segment as well as those that can be allocated on a
reasonable basis. Unallocated items comprise mainly of the share of loss from
associates and jointly controlled entities.
Presentation of financial statements
The consolidated entity applies revised AASB 101 Presentation of Financial
Statements (2007), which became effective as of 1 January 2009. As a result, the
consolidated entity presents in the consolidated statement of changes in equity
all owner changes in equity, whereas all non-owner changes in equity are
presented in the consolidated statement of comprehensive income. This
presentation has been applied in these condensed interim financial statements as
of and for the half-year ended 31 December 2009.
Comparative information has been re-presented so that it also is in conformity
with the revised standard. Since the change in accounting policy only impacts
presentation aspects, there is no impact on earnings per share.
Accounting for acquisitions of non-controlling interests
The consolidated entity has adopted AASB 3 Business Combinations (2008) and AASB
127 Consolidated and Separate Financial Statements (2008) for acquisitions of
non-controlling interests occurring after the beginning of the annual reporting
periods beginning 1 July 2009. The consolidated entity has applied AASB 127
(2008) for the acquisition of non-controlling interests that occurring during
the interim period ended 31 December 2009.
Under the new accounting policy, acquisitions of non-controlling interests are
accounted for as transactions with equity holders in their capacity as equity
holders and therefore no goodwill is recognised as a result of such
transactions. Previously, goodwill was recognised arising on the acquisition of
a non-controlling interest in a subsidiary; and that represented the excess of
the cost of the additional investment over the carrying amount of the interest
in the net assets acquired at the date of exchange.
The change in accounting policy was applied prospectively and had no material
impact on earnings per share.
4. Estimates
The preparation of interim financial statements requires management to make
judgements, estimates and assumptions that affect the application of accounting
policies and the reported amounts of assets, liabilities, income and expense.
Actual results may differ from these estimates.
In preparing these condensed consolidated interim financial statements, the
significant judgements made by management in applying the consolidated entity's
accounting policies and the key sources of estimation uncertainty were the same
as those that applied to the consolidated financial statements for the year
ended 30 June 2009.
5. Operating segments
At 30 June 2009, segment information reported externally was analysed on the
basis of the entity operating in one business segments being mineral exploration
activities and in two geographical segments being Philippines and Australia.
However, information reported to the consolidated entity's Board of Director's
for the purposes of resource allocation and assessment of performance is more
specifically focused on exploration, evaluation and development within the
consolidated entity's major project areas and corporate expenses both for the
head office in Australia and regionally in the Philippines . The consolidated
entity's reportable segments under AASB 8 are therefore as follows:
· Acoje Project- includes exploration, evaluation and development
expenditure in relation to platinum, nickel and chromite mineral interests.
· Zambales Project -includes exploration, evaluation and development
expenditure in relation to chromite and nickel mineral interests.
· Barlo Project -includes exploration, evaluation and development
expenditure in relation to copper and gold mineral interests.
· Corporate Australia - includes head office expenses in Australia.
· Corporate Philippines - includes regional corporate expenses in the
Philippines.
The following is an analysis of the consolidated entity's results by reportable
operating segment for the periods under review:
+-----------------------------------------+-------------+-------------+
| | Segment loss |
+-----------------------------------------+---------------------------+
| | Half-year ended |
+-----------------------------------------+---------------------------+
| | 31 Dec | 31 Dec |
| | 2009 | 2008 |
| | $ | $ |
+-----------------------------------------+-------------+-------------+
| Acoje Project | - | - |
+-----------------------------------------+-------------+-------------+
| Zambales Project | - | - |
+-----------------------------------------+-------------+-------------+
| Barlo Project | - | - |
+-----------------------------------------+-------------+-------------+
| Corporate Australia | (4,229,216) | (2,160,300) |
+-----------------------------------------+-------------+-------------+
| Corporate Philippines | (1,314,034) | (1,418,121) |
+-----------------------------------------+-------------+-------------+
| Reportable segment loss before income | (5,543,250) | (3,578,421) |
| tax | | |
+-----------------------------------------+-------------+-------------+
| | |
+-----------------------------------------+---------------------------+
| Reconciliation of reportable segment | Half-year ended |
| loss | |
+-----------------------------------------+---------------------------+
| | 31 Dec | 31 Dec |
| | 2009 | 2008 |
| | $ | $ |
+-----------------------------------------+-------------+-------------+
| Reportable segment loss before income | (5,543,250) | (3,578,421) |
| tax | | |
+-----------------------------------------+-------------+-------------+
| Elimination of inter-segment losses | 3,139,274 | 2,430,550 |
+-----------------------------------------+-------------+-------------+
| Unallocated amounts: | | |
+-----------------------------------------+-------------+-------------+
| Share of loss of equity accounted | (3,203) | (27,307) |
| investees | | |
+-----------------------------------------+-------------+-------------+
| Share of loss from joint venture | - | (258,759) |
+-----------------------------------------+-------------+-------------+
| Consolidated loss before income tax | (2,407,179) | (1,433,937) |
+-----------------------------------------+-------------+-------------+
The following is an analysis of the consolidated entity's assets by reportable
operating segments:
+-----------------------------------------+------------+------------+
| | 31 Dec | 30 |
| | 2009 | June2009 |
| | $ | $ |
+-----------------------------------------+------------+------------+
| Acoje Project | 13,922,193 | 14,381,744 |
+-----------------------------------------+------------+------------+
| Zambales Project | 179,829 | 191,415 |
+-----------------------------------------+------------+------------+
| Barlo Project | 635,323 | 344,302 |
+-----------------------------------------+------------+------------+
| Corporate Australia | 3,699,241 | 2,670,920 |
+-----------------------------------------+------------+------------+
| Corporate Philippines | 3,530,756 | 1,631,460 |
+-----------------------------------------+------------+------------+
| Reportable segment assets | 21,967,342 | 19,219,841 |
+-----------------------------------------+------------+------------+
6. Exploration, evaluation and development
+-----------------------------------------+------------+------------+
| | 31 Dec | 30 June |
| | 2009 | 2009 |
| | $ | $ |
+-----------------------------------------+------------+------------+
| Balance at beginning of period | 14,917,462 | 9,603,341 |
+-----------------------------------------+------------+------------+
| Capitalised during the period | 732,296 | 2,313,022 |
+-----------------------------------------+------------+------------+
| Additions acquired through | - | 2,829,815 |
| consolidation | | |
+-----------------------------------------+------------+------------+
| Effect of foreign exchange | (912,412) | 171,284 |
+-----------------------------------------+------------+------------+
| Balance at end of period | 14,737,346 | 14,917,462 |
+-----------------------------------------+------------+------------+
7. Issued capital
+-----------------------------------------+-----------------------------------------+------------+
| | 31 December 2009 |
| Movement in shares | |
+ +------------------------------------------------------+
| | Number | $ |
+-----------------------------------------+-----------------------------------------+------------+
| Balance at beginning of period | 245,202,715 | 57,369,493 |
+-----------------------------------------+-----------------------------------------+------------+
| Shares issued - 21 September 2009 (i) | 36,760,800 | 3,676,080 |
+-----------------------------------------+-----------------------------------------+------------+
| Shares issued - 29 Oct 2009 (ii) | 21,000,000 | 1,974,411 |
+-----------------------------------------+-----------------------------------------+------------+
| Share issue costs | - | (383,934) |
+-----------------------------------------+-----------------------------------------+------------+
| Balance at end of period | 302,963,515 | 62,636,050 |
+-----------------------------------------+-----------------------------------------+------------+
(i) the Company issued 36,760,800 fully paid ordinary shares pursuant
to the unconditional placement at 5.25 pence (A 10 cents) per share.
(ii) the Company issued 21,000,000 fully paid ordinary shares pursuant
to the conditional placement at 5.25 pence (A 9.4 cents) per share.
8. Options
Movement in unquoted options over ordinary shares on issue
During the half-year ended 31 December 2009, 20,355,889 (31 December 2008: Nil)
share options exercisable on a 1:1 basis for 20,355,889 shares expired.
During the half-year ended 31 December 2009, the Company issued 2,888,040 (31
December 2008: 10,800,000) unquoted options. For further details of the options
issued refer note 9.
9. Share based payments
On 5 November 2009, the Company issued 2,888,040 unquoted options exercisable at
11 cents on or before 5 November 2011 for services rendered in connection with
the placement of 57,760,800 fully paid ordinary shares at 5.25 pence.
The terms and conditions of the grants made during the half-year ended 31
December 2009 are as follows:
+--------------+--------------+--------------+--------------+
| Grant date | Number of | Vesting | Expiry date |
| | instruments | conditions | |
+--------------+--------------+--------------+--------------+
| 5 November | 2,888,040 | Nil | 5 November |
| 2009 | | | 2011 |
+--------------+--------------+--------------+--------------+
The fair value of services received in return for share options granted is based
on the fair value of share options granted, measured using the Black-Scholes
formula.
Inputs for measurement of grant date fair values
The inputs used in the measurement of the fair values at grant date of the
share-based payment are the following:
+----------------+----------------+
| Fair value at | 5.43 cents |
| grant date | |
+----------------+----------------+
| Share price on | 9.40 cents |
| grant date | |
+----------------+----------------+
| Exercise price | 11.00 cents |
+----------------+----------------+
| Expected | 117% |
| volatility | |
+----------------+----------------+
| Option life | 2 years |
+----------------+----------------+
| Expected | N/A |
| dividends | |
+----------------+----------------+
| Risk-free | 4.77% |
| interest rate | |
+----------------+----------------+
10. Contingent liabilities
There has been no change in contingent liabilities since the last annual
reporting date.
11. Subsequent events
On 2 February 2010, the Company announced a proposed merger between the Company
and its joint venture partner European Nickel PLC ("European Nickel"). The
signed Merger Implementation Agreement ("MIA") proposes European Nickel to
acquire the entire issued share capital of Rusina by way of a Scheme of
Arrangement ("Scheme") under the Australian Corporations Act. The scheme is
subject to Australian court approval and approval by Rusina shareholders.
Key details of the proposed transaction are summarised as follows:
· In consideration for the transaction, Rusina shareholders will be offered
four European Nickel new ordinary shares ("New Shares") for every five Rusina
ordinary shares owned.
· Holders of Rusina share options will be offered New Shares in
consideration for the cancellation of their Rusina options, based on the
calculated value of each series of options. In total 6,425,329 New Shares will
be offered to optionholders.
· Upon completion of the Scheme, and under the terms of the initial offer,
current Rusina shareholders will own approximately 27.3% of the merged company.
· European Nickel plans to establish an Australian listing of its shares
through ASX-listed CHESS Depositary Interests (CDIs) such that Rusina
shareholders can trade the New Shares received on the ASX.
On 2 March 2010, the Company announced that the due diligence conditions
contained in the MIA has been satisfied and accordingly the Scheme is no longer
subject to these conditions.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR JFMLTMBJBMLM
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