10th Sep 2010 10:14
Nyota Minerals Limited ('Nyota' or the 'Company')
Final Results and Annual Report
Nyota announces its final results and the publication of its annual report for the year ended 30 June 2010.
The review of operations and results set out below are extracted from the full annual report which is available from the Company's website: www.nyotaminerals.com. Copies of the annual report are expected to be distributed to shareholders in October 2010.
For further information please contact:
Melissa Sturgess / Terry Tucker
Nyota Minerals Limited
(+44) (0)78 2555 1397/(+44) (0) 78 3324 8466 or [email protected]/[email protected]
NOMAD
Richard Brown / Richard Greenfield
Ambrian Partners Limited
(+44) (0)20 7634 4700
BROKER
Guy Wilkes / Will Slack
Ocean Equities Limited
(+44) (0) 20 7786 4370
BROKER
Rory Scott
Mirabaud Securities LLP
(+44) (0)20 7878 3360
Press enquiries
Charlie Geller / Leesa Peters
Conduit PR +44 (0)20 7429 6604 / +44 (0)75 2823 3383
Or visit: http://www.nyotaminerals.com
OPERATIONS AND FINANCIAL REVIEW
Summary
Following completion of its takeover of Minerva Resources Plc in October 2009, Nyota's focus during the 2010 financial year has centred on the Tulu Kapi gold project in Western Ethiopia. Development has proceeded at a rapid pace and with pleasing results; a Maiden JORC Inferred Resource of 690,000 ounces of gold (at a cut-off grade of 0.5g/t) was declared shortly after Nyota assumed control of the project and in May 2010 there was a subsequent upgrade to a JORC Inferred resource of 1.38 million ounces (25.45 Mt at 1.68 g/t gold at a cut-off grade of 0.5g/t of gold).
Whilst the main effort has been on Tulu Kapi, Nyota has progressed exploration of additional targets in the surrounding licence areas and has also secured a regional portfolio of tenement interests in what is increasingly becoming an area of interest to international resource companies. The Company has engaged a number of external consultants to assist in resource estimation and the commissioning of a Preliminary Economic Assessment feasibility study. This work is addressing all key issues associated with mine development at Tulu Kapi as well as providing guidance for current and future drill programs. Welcoming the IFC as a major shareholder and commitment to the IFC's Performance Standards on social and environmental sustainability has augmented progress.
With the development of the Tulu Kapi project demanding increasing resources and management focus, the Company has rationalised involvement in its other assets, with Nyota's 50% interest in Swazi Gold Ventures (Pty) Ltd (the holder of a 90% interest in the SwaziGold project in Swaziland) being transferred to its joint venture partner in preparation for an overall sale of that company (in respect of which Nyota will receive 50% of any sales proceeds) and exploration at the prospective but highly technical Muremera nickel project (owned 100% by Nyota) being revised and targeted towards extracting maximum value from existing drilling and VTEM survey information.
To maintain momentum Nyota has appointed Mr Terry Tucker, Chief Operations Officer to ensure the effective transition of the Tulu Kapi project from exploration through to project financing and development.
Tulu Kapi Gold project - (100%)
Summary of project status and current estimated resource
The Tulu Kapi gold project is located in western Ethiopia, in Oromia Regional state, 375km west of Addis Ababa. This project currently comprises a JORC Inferred resource of 1.38 million ounces of gold (25.45 Mt at 1.68 g/t gold using a cut-off grade of 0.5g/t of gold). The Tulu Kapi-Ankore exploration licence covers an area of approximately 8.44km2, of which the current resource is situated over an area of approximately 500 x 800m.
Since acquiring ownership of the Tulu Kapi project (as a result of its scrip takeover of Minerva Resources Plc) in mid- 2009, Nyota initially announced a Maiden JORC Inferred resource of 690,000 ounces of gold (at a 0.5g/t gold cut-off), before increasing that resource figure to the current 1.38 million ounces of gold in May 2010. The increased resource represented a 38% increase on the Company's previously-stated objective of a 1 Moz resource target and a 100% increase on the original Maiden Resource. In broad terms, mineralisation at Tulu Kapi consists of a number of "lodes" and the upgraded resource estimate was essentially based on the intersection of two specific areas of mineralisation known as Lodes 1 and 2.
The upgraded resource statement followed the compilation and technical interpretation of 4,579 metres of reverse circulation (RC) drilling by independent consultants Venmyn Rand and was based on data from the Maiden Resource plus verifiable data collated from a further 25 RC holes. Drilling focussed on the NE extension of mineralisation contiguous with the Maiden Resource area, as well as an infill drilling programme between drill traverse lines to increase the level of confidence attributable to the diamond drilling previously undertaken. Assay results were generated by certified laboratories operated by ALS-Chemex and SGS Laboratory in South Africa, with drilling, sampling, chain of custody procedures and data collection and storage all subject to independent verification.
Discovery of new Lode 3 and other additional mineralisation
In June 2010, Nyota announced that a new high grade structure (termed Lode 3) had been discovered beneath the current announced Inferred Resource, which intersected 8.7 metres averaging 8.9 grams per tonne (g/t) of gold and that close-spaced ground magnetic and induced polarisation surveys conducted over the main Tulu Kapi deposit and surrounding area had revealed new extensions to the Tulu Kapi deposit (and generated additional drill targets). In addition, positive drill results were received in relation to 15 further infill and expansion RC holes, indicating the presence of additional mineralisation.
The new Lode 3 structure was intersected by one of four deep diamond drill (DD) holes and found approximately 30 metres below the base of known Lode 2 mineralisation. It is thought that Lode 3 might potentially fall within the limits of conceptual pit design for an open-pit mine at Tulu Kapi.
Current drilling progress
Shortly before the end of the financial year, a second diamond drill rig arrived at the project site and has since been mobilised, joining the existing diamond drill rig and two RC rigs previously in operation there. The new rig is being used on a multi-tasking basis to assist in relation to the twin complementary drill programs being conducted which, respectively, involve the completion of infill drilling over the current Inferred Resource and the drilling of a number of high priority targets forming extensions to the main Tulu Kapi orebody. Current drilling progress is excellent, with cumulative metres drilled currently exceeding 250 metres per day.
Appointment of SRK to prepare Preliminary Economic Assessment (PEA) in relation to Tulu Kapi
Shortly after the end of the financial year, the Company appointed SRK Consulting ("SRK"), an independent international consulting group with particular expertise in the field of mining and exploration, to prepare a Preliminary Economic Assessment ("PEA") in relation to the Tulu Kapi project. The PEA, which will essentially be a more rigorous and detailed version of the desktop Scoping Study undertaken by Venmyn Rand in relation to the project, will be based upon all available project information as at 17 July 2010. Since the May 2010 resource statement this information includes assay, geological and geotechnical data for an estimated additional 40 RC and DD holes, as well as information generated from the magnetic surveys mentioned above, geological interpretation and social, environmental and infrastructure information relevant to the future development of the project.
SRK's work will cover the following key areas:
·; review and revision of the gold resource estimates using current gold prices and a range of cut-offs;
·; production of a PEA which takes into consideration geology, resource and exploration potential, mining, processing, engineering, infrastructure, capital and operating costs and scheduling;
·; pre-tax and post-tax economic modelling and analysis, including royalties;
·; all related considerations concerning the construction and operation of a gold mine at Tulu Kapi; and
·; a separate environment, social and community report covering all relevant aspects of the project.
Regional Airborne Survey
Commencing in the December 2010 quarter UTS-Aeroquest of Australia will complete a 44,700 line km fixed wing airborne geophysical survey of Nyota's exploration properties in western Ethiopia. The survey will collect magnetic and radiometric (K, U and Th) data at a line spacing of 100 meters. The information will be used to guide Nyota's ongoing regional exploration program. The regional exploration program will systematically advance each of the targets identified.
Yubdo and Bila Gulliso licence areas - (100%)
Yubdo exploration licence
The five priority targets for the Yubdo exploration licence, which covers an area of 221.21 sq km near Tulu Kapi-Ankore are Guji, Gudeya Guji, Dina, Chago and South Chago.
Guji Prospect
A drill programme at the Guji prospect has identified encouraging gold assays; borehole GBH04 with 2.95g/t Au over 10.6m from surface to 10.6m and 2.96g/t Au over 4.32m from 26.83m to 31.15m. Further work in April 2009 work including trenching and IP surveys indicated the potential for this gold mineralised zone to extend up to 1km along strike. Guji will be treated as a priority target by Nyota during the current exploration season particularly as this prospect is located only 3 km from Tulu Kapi. Subject to follow up drilling it is anticipated that Guji has the potential to act as a satellite deposit to the main Tulu Kapi project.
Gudeya Guji Prospect
Gudeya Guji is located North of the Guji prospect. Scout drilling was undertaken in early 2008 which failed to intersect any economic grades but did provide an insight into the geology of the target. During 2009, further trenching confirmed gold mineralisation with peak intersections achieved of 2.8g/t Au over 6.0m. The samples collected from this new trench programme have recently been submitted for geochemical analysis by Nyota. If encouraging assay results are returned, then Nyota will determine if a drill programme is warranted to drill test the strike and depth extents of the mineralisation.
Dina Prospect
The Dina prospect is located in the northern part of the Yubdo exploration licence. Work to date provides an insight into the prospect's mineralisation though considerable work is required to bring this project to an advanced stage. Nyota's focus during the next exploration season will be to further test the down dip and strike extensions of the mineralised ore bodies. Promising results were obtained from borehole DBH02 which returned intersections of 30.26g/t Au over 7.10m from 69.6 to 76.70m and 2.40g/t Au over 3.77m from 136.23 to 140m.
Chago Prospect
The Chago prospect is located in the northern part of the Yubdo licence approximately 3 km along strike from the Dina prospect. Samples from work undertaken to excavate and sample a series of trenches have recently been submitted for analysis by Nyota and any future exploration programme will be determined by the results of this assay data.
South Chago Prospect
Reconnaissance work to date has returned low gold in soil results. The next phase of exploration will depend on the outcome of the pending assays as well as an on-going review of prospectivity of the target area.
Billa Gulliso exploration licence
The Billa Gulliso exploration licence covers an area of 202.53 sq km, and is situated immediately north of the Yubdo exploration licence. It has the potential to add further resources to Nyota should the Yubdo prospect mineralisation extend further north. A minimal amount of exploration has been undertaken to date and Nyota plans to commence a regional programme to identify and focus on potential targets.
Regional Ethiopian gold exploration (80%)
In April 2010, Nyota concluded arrangements with the owners of a package of regional Ethiopian exploration tenements comprising approximately 3,000 sq km of highly prospective ground, whereby it had the option to acquire an 80% interest in those tenements. Subsequently, following shareholder approval and detailed due diligence, the Company exercised those options. The tenements, situated to the north of the Tulu Kapi project, exhibit the same geological structure thought to control mineralisation at Tulu Kapi. Accordingly, the Company believes that they have the potential to generate additional discoveries which could bolster the main Tulu Kapi resource.
Muremera Nickel Project
The Muremera Nickel Project in Burundi is located a short distance from Xstrata's Kabanga Nickel Project (which is on the Tanzanian side of the Burundi/Tanzania border), thought to be the single largest undeveloped nickel sulphide deposit in the world. Following the renewal of the Muremera exploration licence in August 2009 and the corresponding renegotiation of the exploration expenditure commitment to approximately US$2 million over two years, Nyota embarked upon a review of all available historical exploration data by an independent consultant specialising in nickel geology. As part of the review, new software was purchased specifically to undertake 3D modelling of the geology based on geological mapping, diamond drill hole log data and geophysical information. In addition, the work programme for Muremera was revised to include a new round of ground and downhole geophysics comprising electromagnetic surveys over the most prospective areas within the licence.
In February-March 2010, twelve drill holes from the 2007-2009 drilling programs were surveyed by down-hole electro-magnetics (DHEM) by the South African contractor, GSS. After initial processing and interpretation by the contractor, the results were subsequently fully interpreted and reconciled with their respective VTEM targets by Condor Consulting of the USA. In general, survey productivity was better than hoped and most of the holes attempted were open for surveying. Only two of the 2008-2009 holes were blocked (including RUJA_D001 containing a 16m intersection of massive sulphides). Three other holes were not attempted as they were of lower priority. However, the DHEM surveys suggested that the use of VTEM surveying (as previously undertaken over the Muremera licence area) was of limited success in differentiating between moderate and very good conductors and that, accordingly, a program of ground electro-magnetic surveys might be more useful in testing prospective mafic-ultramafic bodies for massive to semi-massive sulphide mineralisation that might not have been detected by the VTEM survey. Such a program has been included in the latest work program and budget for the Muremera project.
In March 2010, 523 drill core samples were shipped to ALS Chemex for multi-element analysis by fire assay (Pt, Pd and Au) and acid-digest - ICP-AES (Ni, Cu, Co Cr, Fe, etc). Those samples mainly comprised weakly ultramafic and mafic lithologies with disseminated sulphide from the 2008 and 2009 drill holes in most of the known mafic-ultramafic bodies at Muremera. The focus of the assay program was to establish the range of nickel tenors of the mineralised system in order to enable future exploration work to be prioritised (as only the mafic-ultramafic bodies containing higher-tenor disseminated sulphides are likely to host high-grade massive sulphides). From the assay results, the group of bodies containing a wide range of sulphide tenors (clustered in the Rujungu-Muremera F areas in the northern part of the licence) was separated from the group exhibiting low-tenor sulphides, for future follow-up work.
Finally, a newly-interpreted surface geological map was combined with structural measurements and geophysical inversion of the VTEM survey to generate a three-dimensional geological model of the northern part of the licence areas, to a depth of two kilometres. This model shows the main folded structures in three dimensions and confirms the continuity of the host stratigraphy between the Kabanga area in Tanzania and the Muremera area in Burundi.
Given the change in Nyota's focus to its Ethiopian gold projects the Company has at 30 June 2010 fully impaired its investment in this project to a zero value.
Other investments
SwaziGold
During the financial year the Company transferred its legal interest in Swazi Gold Ventures (Pty) Ltd to joint venture partner Savinara Company SA in preparation for a potential sale of the overall SwaziGold project interest to a third party. The Company retains a right to receive 50% of any proceeds from the sale of that company, however given the Company's current focus on the Ethiopian gold projects it has fully impaired its investment in this project to a zero value.
Philippines coal project
In February 2010 the Company completed the sale of its 8% interest in the Daguma coal project located in the Philippines for USD1.7 million ($1,957,000 after costs). The proceeds of that sale were applied towards advancing exploration at Tulu Kapi. Following this sale the Company no longer has any interest located in the Philippines.
Carlton Resources Plc
Nyota holds approximately 28.5% of Carlton Resources Plc. That company is currently dormant and has no business activities. Carlton Resources Plc de-listed from the AIM exchange in June 2010 but has indicated that it will seek re-admission to trading on AIM once it identifies a suitable project for acquisition.
Corporate
On 14 June 2010, Nyota announced that share subscription arrangements had been concluded with International Finance Corporation ("IFC"), a member of the World Bank group, whereby IFC had invested GBP3.44 million in return for 29,749,327 new ordinary shares in the Company (giving it a 10% shareholding). The IFC arrangements also saw IFC receive options in Nyota which, if exercised, would result in the issue of a further 22,311,995 shares to IFC in return for an additional cash injection of GBP3.86 million. The involvement of IFC is thought by the Company to be a significant positive step not only due to the wealth of social and environmental expertise and assistance that IFC can provide as the Tulu Kapi project develops, but also due to the availability of IFC as a source of potential debt funding for the project in relation to a future mine production scenario.
The technical exploration and mining information contained in this Report has been reviewed and approved by Mr RN Chapman. Mr Chapman has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity to 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 and as a qualified person under the AIM Guidance Note for Mining, Oil and Gas Companies. Mr Chapman is an employee of Mineral Exploration Management Limited, an independent geological consultancy established in 2005 and is a member of the Australasian Institute of Mining and metallurgy (Aus.I.M.M). Mr Chapman consents to the inclusion in this Report of such information in the form and context in which it appears.
The information in this announcement that relates to the consultant responsible for the latest resource estimation is based on work completed independently by Mr Neil McKenna, who is a full time employee of Venmyn Rand Pty Ltd, a South African based independent mineral consultant. Mr McKenna is a Member of the South African Institute of Mining and Metallurgy (MSAIMM), a Member of the Investment Analyst Society of South Africa (MIASSA), and also a Member of Geological Society of South Africa (MGSSA) and has sufficient experience which is relevant to the style of mineralisation 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" and is a "Qualified Person" as defined under the AIM Note for Mining, Oil and Gas Companies. Mr McKenna consents to the inclusion in this announcement of the matters based on his information in the form and context in which it appears.
*Figures for contained ounces have been rounded and include both primary and supergene resources. Significant figures used
FOR THE YEAR ENDED 30 JUNE 2010
|
|
|
|
|
Consolidated |
||
|
|
|
|
|
2010 |
2009 |
|
|
|
|
|
Notes |
$000 |
$000 |
|
|
|
|
|
|
|
|
|
|
Revenue from operations |
|
|
|
|
|
|
|
Other revenue |
|
|
5 |
2,085 |
423 |
|
|
|
|
|
|
|
|
|
|
Other expenses from continuing operations |
|
|
|
|
|
|
|
Administration |
|
|
6 |
(3,083) |
(2,392) |
|
|
Foreign exchange losses |
|
|
|
(1,641) |
(270) |
|
|
Impairment of assets |
|
|
6 |
(7,554) |
(21,992) |
|
|
Share based compensation expense |
|
|
|
(822) |
(152) |
|
|
Uncompleted transaction expenses |
|
|
|
- |
(561) |
|
|
Loss before income tax |
|
|
|
(11,015) |
(24,944) |
|
|
|
|
|
|
|
|
|
|
Income tax expense |
|
|
7 |
- |
- |
|
|
|
|
|
|
|
|
|
|
Loss for the year from continuing operations |
|
|
|
(11,015) |
(24,944) |
|
|
|
|
|
|
|
|
|
|
Loss from discontinued operations |
|
|
30 |
(6,967) |
(43) |
|
|
Loss for year |
|
|
|
(17,982) |
(24,987) |
|
|
|
|
|
|
|
|
|
|
Other comprehensive loss |
|
|
|
|
|
|
|
Exchange differences on translation of foreign operations |
|
|
20 |
(1,010) |
(8) |
|
|
Changes in fair value of available for sale financial assets, net of tax |
|
|
20 |
15 |
(47) |
|
|
Total other comprehensive loss |
|
|
|
(995) |
(55) |
|
|
|
|
|
|
|
|
|
|
Total comprehensive loss for the year |
|
|
|
(18,977) |
(25,042) |
|
|
|
|
|
|
|
|
|
|
Total comprehensive loss attributable to members of Nyota Minerals Limited |
|
|
|
(18,977) |
(25,042) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cents |
Cents |
|
|
|
|
|
|
|
|
|
|
Loss per share from continuing operations attributable to ordinary equity holders of Nyota Minerals Limited |
|
|
|
|
||
|
Basic loss per share |
|
|
27 |
(4.5) |
(13.9) |
|
|
Diluted loss per share |
|
|
27 |
(4.5) |
(13.9) |
|
The above statement of comprehensive income should be read in conjunction with the accompanying notes.
AS AT 30 JUNE 2010
|
|
|
|
|
Consolidated |
||
|
|
|
|
|
2010 |
2009 |
|
|
|
|
|
Notes |
$000 |
$000 |
|
|
ASSETS |
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
|
Cash and cash equivalents |
|
|
8 |
11,862 |
13,020 |
|
|
Trade and other receivables |
|
|
9 |
796 |
484 |
|
|
Non-current asset classified as held for sale |
|
|
10 |
- |
678 |
|
|
Total current assets |
|
|
|
12,658 |
14,182 |
|
|
|
|
|
|
|
|
|
|
Non-current assets |
|
|
|
|
|
|
|
Receivables |
|
|
11 |
- |
466 |
|
|
Available-for-sale assets |
|
|
12 |
152 |
77 |
|
|
Property, plant and equipment |
|
|
13 |
400 |
33 |
|
|
Exploration, evaluation and mining properties |
|
|
14 |
14,469 |
12,689 |
|
|
Total non-current assets |
|
|
|
15,021 |
13,265 |
|
|
|
|
|
|
|
|
|
|
Total assets |
|
|
|
27,679 |
27,447 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
|
Trade and other payables |
|
|
16 |
1,309 |
937 |
|
|
Total current liabilities |
|
|
|
1,309 |
937 |
|
|
|
|
|
|
|
|
|
|
Non-current liabilities |
|
|
|
|
|
|
|
Borrowings |
|
|
17 |
- |
384 |
|
|
Total non-current liabilities |
|
|
|
- |
384 |
|
|
|
|
|
|
|
|
|
|
Total liabilities |
|
|
|
1,309 |
1,321 |
|
|
|
|
|
|
|
|
|
|
Net assets |
|
|
|
26,370 |
26,126 |
|
|
|
|
|
|
|
|
|
|
EQUITY |
|
|
|
|
|
|
|
Contributed equity |
|
|
19 |
123,474 |
104,835 |
|
|
Reserves |
|
|
20 |
1,806 |
2,219 |
|
|
Accumulated losses |
|
|
31 |
(98,910) |
(80,928) |
|
|
|
|
|
|
|
|
|
|
Total equity |
|
|
|
26,370 |
26,126 |
|
The above balance sheet should be read in conjunction with the accompanying notes.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2010
|
|
|
Consolidated |
|||
|
|
|
Contributed equity |
Accumulated losses |
Reserves |
Total equity |
|
|
Note |
$ |
$ |
$ |
$ |
|
|
|
|
|
|
|
|
Balance 1 July 2008 |
|
97,116 |
(55,941) |
2,122 |
43,297 |
|
Total comprehensive loss for the year |
|
- |
(24,987) |
(55) |
(25,042) |
|
Transactions with equity holders in their capacity as equity holders: |
|
|
|
|
|
|
Contributions of equity, after tax and transaction costs |
19 |
7,719 |
- |
- |
7,719 |
|
Share based compensation |
28 |
- |
- |
152 |
152 |
|
|
|
7,719 |
- |
152 |
7,871 |
|
Balance at 30 June 2009 |
|
104,835 |
(80,928) |
2,219 |
26,126 |
|
|
|
|
|
|
|
|
Total comprehensive loss for the year |
|
- |
(17,982) |
(995) |
(18,977) |
|
Transactions with equity holders in their capacity as equity holders: |
|
|
|
|
|
|
Contributions of equity, after tax and transaction costs |
19 |
18,399 |
- |
- |
18,399 |
|
Share based compensation |
28 |
240 |
- |
582 |
822 |
|
|
|
18,639 |
- |
- |
19,221 |
|
Balance at 30 June 2010 |
|
123,474 |
(98,910) |
1,806 |
26,370 |
|
|
|
|
|
|
|
The above statement of changes in equity should be read in conjunction with the accompanying notes.
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2010
|
|
|
|
|
Consolidated |
||
|
|
|
|
|
2010 |
2009 |
|
|
|
|
|
Notes |
$000 |
$000 |
|
|
Cash flow from operating activities |
|
|
|
|
|
|
|
Receipts from customers (inclusive of goods and services tax) |
|
|
|
92 |
160 |
|
|
Payments to suppliers and employees (inclusive of goods and services tax) |
|
|
|
(3,802) |
(2,815) |
|
|
Interest received |
|
|
|
128 |
383 |
|
|
Net cash flow used in operating activities |
|
|
26 |
(3,582) |
(2,272) |
|
|
|
|
|
|
|
|
|
|
Cash flow from investing activities |
|
|
|
|
|
|
|
Uncompleted business combination transaction expenses |
|
|
|
- |
(561) |
|
|
Payments for exploration, evaluation and development of mining properties |
|
|
|
(7,362) |
(4,513) |
|
|
Proceeds from sale of mining property |
|
|
|
1,957 |
- |
|
|
Proceeds from sale of plant and equipment |
|
|
|
- |
1 |
|
|
Payments for plant and equipment |
|
|
|
(118) |
(2) |
|
|
Loans to other parties |
|
|
|
(226) |
(466) |
|
|
Cash acquired on acquisition of controlled entity |
|
|
|
112 |
- |
|
|
Payment for equities |
|
|
|
(60) |
- |
|
|
Net cash flow used in investing activities |
|
|
|
(5,697) |
(5,541) |
|
|
|
|
|
|
|
|
|
|
Cash flow from financing activities |
|
|
|
|
|
|
|
Proceeds from issue of shares |
|
|
|
10,062 |
20,890 |
|
|
Payments for equity issue costs |
|
|
|
(300) |
(252) |
|
|
Net cash flow from financing activities |
|
|
|
9,762 |
20,638 |
|
|
|
|
|
|
|
|
|
|
Net increase in cash and cash equivalents |
|
|
|
483 |
12,825 |
|
|
Cash at the beginning of the financial year |
|
|
|
13,020 |
472 |
|
|
Effects of exchange rate changes on cash and cash equivalents |
|
|
|
(1,641) |
(277) |
|
|
Cash and cash equivalents held at the end of the financial year |
|
|
8 |
11,862 |
13,020 |
|
|
|
|
|
|
|
|
|
|
Non-cash financing and investing activities |
|
|
26 |
|
|
|
The above statement of cash flows should be read in conjunction with the accompanying notes.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
30 JUNE 2010
1 Summary of significant accounting policies
The principal accounting policies adopted in the preparation of these consolidated financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated. The financial statements are for the consolidated entity consisting of Nyota Minerals Limited and its subsidiaries.
(a) Basis of preparation of financial report
This general purpose financial report has been prepared in accordance with Australian Accounting Standards, other authoritative pronouncements of the Australian Accounting Standards Board, Urgent Issues Group Interpretations and the Corporations Act 2001.
Compliance with IFRS
The consolidated financial statements of the Nyota Minerals Limited group also comply with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB).
Historical cost convention
These financial statements have been prepared under the historical cost convention, as modified by the revaluation of available-for-sale financial assets.
Critical accounting estimates
The preparation of financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgment in the process of applying the Group's accounting policies. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed in note 3.
Financial statement presentation
The Group has applied the revised AASB 101 Presentation of Financial Statements which became effective on 1 January 2009. The revised standard requires the separate presentation of a statement of comprehensive income and a statement of changes in equity. All non‑owner changes in equity must now be presented in the statement of comprehensive income. As a consequence, the Group had to change the presentation of its financial statements. Comparative information has been re‑presented so that it is also in conformity with the revised standard.
(b) Principles of consolidation
Subsidiaries
The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Nyota Minerals Limited (''Company'' or ''parent entity'') as at 30 June 2010 and the results of all subsidiaries for the year then ended. Nyota Minerals Limited and its subsidiaries together are referred to in this financial report as the Group or the consolidated entity.
Subsidiaries are all those entities (including special purpose entities) over which the Group has the power to govern the financial and operating policies, generally accompanying a shareholding of more than one‑half of the voting rights. The existence and effect of potential voting rights that are currently exercisable or convertible are considered when assessing whether the Group controls another entity.
Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are de‑consolidated from the date that control ceases.
The acquisition method of accounting is used to account for the acquisition of subsidiaries by the Group.
Intercompany transactions, balances and unrealised gains on transactions between Group companies are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of the impairment of the asset transferred. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group.
Minority interests in the results and equity of subsidiaries are shown separately in the statement of comprehensive income, statement of changes in equity and balance sheet respectively.
Associates
Associates are all entities over which the Group has significant influence but not control, generally accompanying a shareholding of between 20% and 50% of the voting rights. Investments in associates are accounted for using the equity method of accounting, after initially being recognised at cost.
The Group's share of its associates' post‑acquisition profits or losses is recognised in profit or loss, and its share of post‑acquisition movements in reserves is recognised in other comprehensive income. The cumulative post‑acquisition movements are adjusted against the carrying amount of the investment. Dividends receivable from associates are recognised as a reduction the carrying amount of the investment.
When the Group's share of losses in an associate equals or exceeds its interest in the associate, including any other unsecured receivables, the Group does not recognise further losses, unless it has incurred obligations or made payments on behalf of the associate.
Unrealised gains on transactions between the Group and its associates are eliminated to the extent of the Group's interest in the associates. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Where the investment will be recovered principally through a sale transaction rather than through continuing use it will be accounted for as a non-current asset held for sale and measured at fair value at reporting dates. Any impairment of the investment will be recognised in profit and loss (refer to note 1(n)).
(c) Segment reporting
The Group has applied AASB 8 Operating Segments from 1 July 2009. AASB 8 requires a 'management approach' under which segment information is presented on the same basis as that used for internal reporting purposes (refer to note 4).
Operating segments are now reported in a manner that is consistent with the internal reporting provided to the chief operating decision maker. The chief operating decision maker has been identified as the Chief Executive Officer.
The Group considers that it operates in distinct segments being different countries around the world.
(d) Foreign currency translation
(i) Functional and presentation currency
Items included in the financial statements of each of the Group's entities are measured using the currency of the primary economic environment in which the entity operates ('the functional currency'). The consolidated financial statements are presented in Australian dollars, which is Nyota Minerals Limited's functional and presentation currency.
(ii) Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year‑end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit and loss.
(iii) Group companies
The results and financial position of all the Group entities (none of which has the currency of a hyperinflationary economy) that have a functional currency different from the presentation currency are translated into the presentation currency as follows:
·; assets and liabilities for each balance sheet presented are translated at the closing rate at the date of that balance sheet;
·; income and expenses for each income statement and statement of comprehensive income are translated at average exchange rates (unless this is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated at the dates of the transactions); and
·; all resulting exchange differences are recognised as other comprehensive income.
On consolidation, exchange differences arising from the translation of any net investment in foreign entities, and of borrowings and other currency instruments designated as hedges of such investments, are taken to other comprehensive income. When a foreign operation is sold or any borrowings forming part of the net investment are repaid, a proportionate share of such exchange differences are recognised in profit and loss as part of the gain or loss on sale, where applicable.
Goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as assets and liabilities of the foreign entity and translated at the closing rate.
(e) Revenue recognition
Revenue is measured at the fair value of the consideration received or receivable. Amounts disclosed as revenue are net of returns and trade allowances. Revenue is recognised for the major business activities when the following specific recognition criteria are met:
Sales
Risks and rewards of the goods have passed to the buyer, which occurs on delivery.
Interest income
Interest income is recognised on a time proportionate basis using the effective interest rate method.
(f) Income tax
The income tax expense or revenue for the period is the tax payable on the current period's taxable income based on the national income tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable to temporary differences between the tax bases of assets and liabilities and their carrying amounts in the financial statements and to unused tax losses.
Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements. However, the deferred income tax is not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the balance sheet date and are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled.
Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that future taxable amounts will be available to utilise those temporary differences and losses.
Deferred tax liabilities and assets are not recognised for temporary differences between the carrying amount and tax bases of investments in controlled entities where the parent entity is able to control the timing of the reversal of the temporary differences and it is probable that the differences will not reverse in the foreseeable future.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and liabilities and when the deferred tax balances relate to the same taxation authority. Current tax assets and tax liabilities are offset where the entity has a legally enforceable right to offset and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.
Current and deferred tax balances attributable to amounts recognised directly in equity are also recognised directly in equity.
The Australian tax consolidation regime does not apply to the company because there are no Australian incorporated subsidiaries.
(g) Business combinations
The acquisition method of accounting is used to account for all business combinations, including business combinations involving entities or businesses under common control, regardless of whether equity instruments or other assets are acquired. The consideration transferred for the acquisition of a subsidiary comprises the fair values of the assets transferred, the liabilities incurred and the equity interests issued by the group. The consideration transferred also includes the fair value of any contingent consideration arrangement and the fair value of any pre‑existing equity interest in the subsidiary. Acquisition‑related costs are expensed as incurred. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are, with limited exceptions, measured initially at their fair values at the acquisition date. On an acquisition‑by‑acquisition basis, the group recognises any non‑controlling interest in the acquiree either at fair value or at the non‑controlling interest's proportionate share of the acquiree's net identifiable assets.
The excess of the consideration transferred, the amount of any non‑controlling interest in the acquiree and the acquisition‑date fair value of any previous equity interest in the acquiree over the fair value of the group's share of the net identifiable assets acquired is recorded as goodwill. If those amounts are less than the fair value of the net identifiable assets of the subsidiary acquired and the measurement of all amounts has been reviewed, the difference is recognised directly in profit or loss as a bargain purchase.
Where settlement of any part of cash consideration is deferred, the amounts payable in the future are discounted to their present value as at the date of exchange. The discount rate used is the entity's incremental borrowing rate, being the rate at which a similar borrowing could be obtained from an independent financier under comparable terms and conditions.
(h) Leases
Leases of property, plant and equipment where the Group, as lessee, has substantially all the risks and rewards of ownership are classified as finance leases. Finance leases are capitalised at the lease's inception at the fair value of the leased property or, if lower, the present value of the minimum lease payments. The corresponding rental obligations, net of finance charges, are included in other short-term and long-term payables. Each lease payment is allocated between the liability and finance cost. The finance cost is charged to profit and loss over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period. The property, plant and equipment acquired under finance leases is depreciated over the shorter of the asset's useful life and the lease term.
Leases in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases (net of any incentives received from the lessor) are charged to profit and loss on a straight-line basis over the period of the lease.
(i) Impairment of assets
Goodwill and intangible assets that have an indefinite useful life are not subject to amortisation and are tested annually for impairment or more frequently if events or changes in circumstances indicate that they might be impaired. Other assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash inflows which are largely independent of the cash inflows from other assets or groups of assets (cash-generating units). Non-financial assets other than goodwill that suffered an impairment are reviewed for possible reversal of the impairment at each reporting date.
(j) Cash and cash equivalents
For cash flow statement presentation purposes, cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value, and bank overdrafts.
(k) Trade receivables
Trade receivables are recognised initially at fair value and subsequently measured at amortised cost, less provision for impairment. Trade receivables are due for settlement no more than 30 days from the date of recognition.
Collectability of trade receivables is reviewed on an ongoing basis. Debts which are known to be uncollectible are written off. A provision for impairment of trade receivables is established when there is objective evidence that the Group will not be able to collect all amounts due according to the original terms of receivables. The amount of the provision is the difference between the asset's carrying amount and the present value of estimated future cash flows, discounted at the effective interest rate. The amount of the provision is recognised in profit and loss.
(l) Investments and other financial assets
Classification
The Group classifies its investments in the following categories: loans and receivables and available‑for‑sale financial assets. The classification depends on the purpose for which the investments were acquired. Management determines the classification of its investments at initial recognition and re‑evaluates this designation at each reporting date.
(i) Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They arise when the Group provides money, goods or services directly to a debtor with no intention of selling the receivable. They are included in current assets, except for those with maturities greater than 12 months after the balance sheet date which are classified as non‑current assets. Loans and receivables are included in receivables in the balance sheet.
(ii) Available‑for‑sale financial assets
Available‑for‑sale financial assets, comprising principally marketable equity securities, are non‑derivatives that are either designated in this category or not classified in any of the other categories. They are included in non‑current assets unless management intends to dispose of the investment within 12 months of the balance sheet date.
Recognition and derecognition
Purchases and sales of investments are recognised on trade‑date ‑ the date on which the Group commits to purchase or sell the asset. Investments are initially recognised at fair value plus transaction costs for all financial assets not carried at fair value through profit or loss. Financial assets are derecognised when the rights to receive cash flows from the financial assets have expired or have been transferred and the Group has transferred substantially all the risks and rewards of ownership.
Subsequent measurement
Available‑for‑sale financial assets are subsequently carried at fair value. Loans and receivables are carried at amortised cost using the effective interest method. Unrealised gains and losses arising from changes in the fair value of non monetary securities classified as available‑for‑sale are recognised in in other comprehensive income. When securities classified as available‑for‑sale are sold or impaired, the accumulated fair value adjustments are included in the profit and loss as gains and losses from investment securities.
Fair value
The fair values of quoted investments are based on current bid prices. If the market for a financial asset is not active (and for unlisted securities), the Group establishes fair value by using valuation techniques. These include reference to the fair values of recent arm's length transactions, involving the same instruments or other instruments that are substantially the same, discounted cash flow analysis, and option pricing models refined to reflect the issuer's specific circumstances.
Impairment
The Group assesses at each balance date whether there is objective evidence that a financial asset or group of financial assets is impaired. In the case of equity securities classified as available for sale, a significant or prolonged decline in the fair value of a security below its cost is considered in determining whether the security is impaired. If any such evidence exists for available‑for‑sale financial assets, the cumulative loss ‑ measured as the difference between the acquisition cost and the current fair value, less any impairment loss on that financial asset previously recognised in profit and loss ‑ is removed from equity and recognised in profit and loss. Impairment losses recognised as profit or loss on equity instruments classified as available-for-sale are not reversed through the profit or loss.
(m) Non-current assets (or disposal groups) held for sale and discontinued operations
Non-current assets (or disposal groups) are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use. They are measured at the lower of their carrying amount and fair value less costs to sell. Any impairment of the investment will be recognised in profit and loss. Non-current assets classified as held for sale are presented separately from the other assets in the balance sheet.
A discontinued operation is a component of the entity that has been disposed of or is classified as held for sale and that represents a separate major line of business or geographical area of operations, is part of a single coordinated plan to dispose of such a line of business or area of operations, or is a subsidiary acquired exclusively with a view to resale. The results of discontinued operations are presented separately on the face of the profit and loss.
(n) Property, plant and equipment
Property, plant and equipment is stated at historical cost less depreciation. Historical cost includes expenditure that is directly attributable to the acquisition of the items.
Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. All other repairs and maintenance are charged to profit and loss during the financial period in which they are incurred.
Depreciation is calculated using the straight line method to allocate their cost, net of their residual values, over their estimated useful lives, as follows:
|
‑ Machinery |
5‑12 years |
|
‑ Furniture, fittings and equipment |
3‑8 years |
|
‑ Motor vehicles |
3-5 years |
The assets' residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet date.
An asset's carrying amount is written down immediately to its recoverable amount if the asset's carrying amount is greater than its estimated recoverable amount (note 1(i)).
Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are included in profit and loss.
(o) Exploration and evaluation expenditure
Exploration and evaluation costs include expenditure incurred in connection with the exploration for and the evaluation of economically recoverable mineral resources. These costs include costs of acquisition, exploration and appraisal costs and technical overheads directly associated with those projects.
The company's policy with respect to exploration and evaluation expenditure is to use the "area of interest" method. Under this method, exploration and evaluation costs are carried forward on the following basis:
(i) Each area of interest is considered separately when deciding whether and to what extent to carry forward or write off exploration and evaluation costs;
(ii) Exploration and evaluation costs related to an area of interest may be carried forward provided that rights to tenure of the area of interest are current and provided further that one of the following conditions are met:
·; such costs are expected to be recouped through successful development and exploitation of the area of interest or alternatively, by its sale; or
·; exploration and/or evaluation activities in the area of interest have not yet reached a stage which permits a reasonable assessment of the existence or otherwise of economically recoverable reserves and active and significant operations in relation to the area are continuing.
(iii) The carrying values of exploration and evaluation costs are reviewed by directors where results of exploration and/or evaluation of an area of interest are sufficiently advanced to permit a reasonable estimate of the costs expected to be recouped through successful development and exploitation of the area of interest or by its sale. Expenditure in excess of this estimate is written off to the profit and loss account in the year in which the review occurs;
(iv) When development of an area of interest is complete and production commences, all exploration, evaluation and development costs carried forward as an asset (including the cost of extractive rights acquired) are transferred to mining properties. Development costs related to an area of interest are carried forward as an asset to the extent that they are expected to be recovered either through sale or successful exploitation; and
(v) The carrying values of exploration, evaluation and development expenditure are transferred to mining properties and are carried forward and amortised over the expected useful life of each project.
(p) Mining properties
Mine properties represent the acquisition costs and/or accumulation of exploration, evaluation and development costs in respect of areas of interest in which mining has commenced.
When further development expenditure is incurred in respect of a mine property after the commencement of production, such expenditure is carried forward as part of the mine property only when substantial future economic benefits are thereby established, otherwise such expenditure is classified as part of the cost of production.
Amortisation is provided on a unit-of-production basis so as to write off the cost in proportion to the depletion of the proved and probable mineral resources.
(q) Trade and other payables
These amounts represent liabilities for goods and services provided to the Group prior to the end of financial year which are unpaid. The amounts are unsecured and are usually paid within 30 days of recognition.
(r) Borrowings
Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognised in profit and loss over the period of the borrowings using the effective interest method.
The fair value of the liability portion of a convertible bond is determined using a market interest rate for an equivalent non-convertible bond. This amount is recorded as a liability on an amortised cost basis until extinguished on conversion or maturity of the bonds. The remainder of the proceeds is allocated to the conversion option. This is recognised and included in shareholders' equity, net of income tax effects.
Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement of the liability for at least 12 months after the balance sheet date.
(s) Provisions
Provisions are recognised when the consolidated entity has a legal, equitable or constructive obligation to make a future sacrifice of economic benefits to other entities as a result of past transactions or other past events, it is probable that a future sacrifice of economic benefits will be required and a reliable estimate can be made of the amount of the obligation.
Rehabilitation and restoration costs
Where the group has obligations for site restoration related to its mining properties, the group establishes restoration provisions for future mine closure costs when a legal or constructive obligation exists based on the present value of the future cash flows required to satisfy the obligations. Provisions expected to be utilised in the coming 12 months on areas with lives of less than one year are accounted for in profit and loss. Provisions not expected to be utilised in the coming 12 months are added to the capital cost of the related mining assets in mine properties and amortised over the resource life. The provision is accreted to its future value over the resource life through a charge to borrowing costs.
Changes in the estimated cost of rehabilitation are applied on a prospective basis with an adjustment to capital cost.
(t) Employee benefits
(i) Wages and salaries, annual leave and sick leave
Liabilities for wages and salaries, including non‑monetary benefits, annual leave and accumulating sick leave expected to be settled within 12 months of the reporting date are recognised in other payables in respect of employees' services up to the reporting date and are measured at the amounts expected to be paid when the liabilities are settled. Liabilities for non‑accumulating sick leave are recognised when the leave is taken and measured at the rates paid or payable.
(ii) Share‑based payments
Share‑based compensation benefits are provided to employees via the Nyota Minerals Limited Share and Option Plan. Information on these schemes is set out in note 28.
The fair value of shares and options granted under the Nyota Minerals Limited Employee Share and Option Plans is recognised as an employee benefit expense with a corresponding increase in equity. The fair value is measured at grant date and recognised over the period during which the employees become unconditionally entitled to the shares and/or options.
The fair value at grant date is independently determined using a Black‑Scholes option pricing model that takes into account the issue/exercise price, the term of the option, the impact of dilution, the non‑tradeable nature of the share/option, the share price at grant date and expected price volatility of the underlying share, the expected dividend yield and the risk‑free interest rate for the term of the option.
The fair value of the shares and/or options granted is adjusted to reflect market vesting conditions, but excludes the impact of any non‑market vesting conditions. Non‑market vesting conditions are included in assumptions regarding the employee loan recoverability and about the number of options that are expected to vest. At each balance sheet date, the entity revises its estimate of the number of options that are expected to become exercisable. The employee benefit expense recognised each period takes into account the most recent estimate. The impact of the revision to original estimates, if any, is recognised in profit and loss with a corresponding adjustment to equity.
The value of shares issued to employees financed by way of a non recourse loan under the employee share scheme is recognised with a corresponding increase in equity when the company receives funds from either the employees repaying the loan or upon the loan termination. All shares issued under the plan with non recourse loans are considered, for accounting purposes, to be options.
(u) Contributed equity
Ordinary shares are classified as equity.
Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from the proceeds. Incremental costs directly attributable to the issue of new shares or options for the acquisition of a business are included in the cost of the acquisition as part of the purchase consideration.
(v) Earnings per share
(i) Basic earnings per share
Basic earnings per share is calculated by dividing the profit or loss attributable to equity holders of the Company, excluding any costs of servicing equity other than ordinary shares, by the weighted average number of ordinary shares outstanding during the year.
(ii) Diluted earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account the after income tax effect of interest and other financing costs associated with dilutive potential ordinary shares and the weighted average number of shares assumed to have been issued for no consideration in relation to dilutive potential ordinary shares.
(w) Goods and Services Tax (GST)
Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not recoverable from the taxation authority. In this case it is recognised as part of the cost of acquisition of the asset or as part of the expense.
Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or payable to, the taxation authority is included with other receivables or payables in the balance sheet.
Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities which are recoverable from, or payable to the taxation authority, are presented as operating cash flow.
(x) Rounding of amounts
The company is of a kind referred to in Class order 98/0100, issued by the Australian Securities and Investments Commission, relating to the ''rounding off'' of amounts in the financial statements. Amounts in the financial statements have been rounded off in accordance with that Class Order to the nearest thousand dollars, or in certain cases, the nearest dollar.
(y) Parent entity financial information
The financial information for the parent entity, Nyota Minerals Ltd, disclosed in note 29 have been prepared on the same basis as the consolidated financial statements, except as set out below:
(i) Investments in subsidiaries and associates
Investments in subsidiaries and associates are accounted for at cost in the parent entity accounts. Dividends received from associates are recognised in the parent entity's profit and loss, rather than being deducted from the carrying value of the investment.
(ii) Financial guarantees
Where the parent entity has provided financial guarantees in relation to loans and payables of subsidiaries for no compensation, the fair values of these guarantees are accounted for as contributions and recognised as part of the cost of investment.
(z) New Accounting Standards and Interpretations
Certain new accounting standards and interpretations have been published that are not mandatory for 30 June 2010 reporting periods. The Group's assessment of the impact of these new standards and interpretations is set out below.
|
(i) AASB 2009‑8 Amendments to Australian Accounting Standards ‑ Group Cash‑settled Share‑based Payment Transactions [AASB2] (effective from 1 January 2010) |
|
The amendments made by the AASB to AASB 2 confirm that an entity receiving goods or services in a group share‑based payment arrangement must recognise an expense for those goods or services regardless of which entity in the group settles the transaction or whether the transaction is settled in shares or cash. They also clarify how the group share‑based payment arrangement should be measured, that is, whether it is measured as an equity ‑ or a cash‑settled transaction. The group will apply these amendments retrospectively for the financial reporting period commencing on 1 July 2010. There will be no impact on the group's financial statements. |
|
(ii) AASB 2009‑10 Amendments to Australian Accounting Standards ‑ Classification of Rights Issues [AASB 132] (effective from 1 February 2010) |
|
In October 2009 the AASB issued an amendment to AASB 132 Financial Instruments: Presentation which addresses the accounting for rights issues that are denominated in a currency other than the functional currency of the issuer. Provided certain conditions are met, such rights issues are now classified as equity regardless of the currency in which the exercise price is denominated. Previously, these issues had to be accounted for as derivative liabilities. The amendment must be applied retrospectively in accordance with AASB 108 Accounting Policies, Changes in Accounting Estimates and Errors. The group will apply the amended standard from 1 July 2010. As the group has not made any such rights issues, the amendment will not have any effect on the group's financial statements. |
|
(iii) AASB 9 Financial Instruments and AASB 2009‑11 Amendments to Australian Accounting Standards arising from AASB 9 (effective from 1 January 2013) |
|
AASB 9 Financial Instruments addresses the classification and measurement of financial assets and is likely to affect the group's accounting for its financial assets. The standard is not applicable until 1 January 2013 but is available for early adoption. The group is yet to assess its full impact, however, initial indications are that it may affect the group's accounting for it available‑for‑sale financial assets, since AASB 9 only permits the recognition of fair value gains and losses in other comprehensive income if they relate to equity investments that are not held for trading. Fair value gains and losses on available‑for‑sale debt investments, for example, will therefore have to be recognised directly in profit or loss. |
|
(iv) Revised AASB 124 Related Party Disclosures and AASB 2009‑12 Amendments to Australian Accounting Standards (effective from 1 January 2011) |
|
In December 2009 the AASB issued a revised AASB 124 Related Party Disclosures. It is effective for accounting periods beginning on or after 1 January 2011 and must be applied retrospectively. The amendment clarifies and simplifies the definition of a related party. The group will apply the amended standard from 1 July 2011. When the amendments are applied, the group will need to disclose any transactions between its subsidiaries and its associates. However there will be no impact on any amount recognised in the financial statements. |
|
(v) AASB Interpretation 19 Extinguishing financial liabilities with equity instruments and AASB 2009‑13 Amendments to Australian Accounting Standards arising from Interpretation 19 (effective from 1 January 2011) |
|
AASB Interpretation 19 clarifies the accounting when an entity renegotiates the terms of its debt with the result that the liability is extinguished by the debtor issuing its own equity instruments to the creditor (debt for equity swap). It requires a gain or loss to be recognised in profit or loss which is measured as the difference between the carrying amount of the financial liability and the fair value of the equity instruments issued. The group will apply the interpretation from 1 July 2010. It is not expected to have any impact on the group's financial statements since it is only retrospectively applied from the beginning of the earliest period presented (1 July 2009) and the group has not entered into any debt for equity swaps since that date. |
|
(vi) AASB 1053 Application of Tiers of Australian Accounting Standards and AASB2010-2 Amendments to Australian Accounting Standards arising from Reduced Disclosure Requirements (effective 1 July 2013) |
|
On 30 June 2010 the AASB officially introduced a revised differential reporting framework in Australia. Under this framework, a two-tier differential reporting regime applies to all entities that prepare general purpose financial statements. Nyota Minerals Limited is listed on the ASX and is therefore not eligible to adopt the new Australian Accounting Standards - Reduced Disclosure Requirements. As a consequence, the two standards will have no impact on the financial statements of the entity. |
|
(vii) AASB 2010-3 Amendments to Australian Accounting Standards arising from the Annual Improvements Project and AASB 2010-4 Further Amendments to Australian Accounting Standards arising from the Annual Improvements Project (effective for annual periods beginning on or after 1 July 2010/1 January 2011) |
|
In June 2010, the AASB made a number of amendments to Australian Accounting Standards as a result of the IASB's annual improvements project. The Group will apply the amendments from 1 July 2010. The Group has not yet assessed the impact of the revised rules. |
2 Financial risk management
The Group's activities expose it predominantly to credit risk, interest rate risk and foreign exchange risk. The Group's overall risk management program focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the financial performance of the Group.
Risk management is carried out by the Board of Directors. The Board provides principles for overall risk management, and is in the process of formalising and documenting these policies covering specific areas, such as mitigating foreign exchange, interest rate and credit risks. No derivative financial instruments have been used in the management of risk.
The Group holds the following financial instruments:
|
|
|
Consolidated |
||
|
|
|
|
2010 |
2009 |
|
|
|
|
$000 |
$000 |
|
|
|
|
|
|
|
Financial assets |
|
|
|
|
|
Cash and cash equivalents |
|
|
11,862 |
13,020 |
|
Trade and other receivables |
|
|
796 |
950 |
|
Non-current asset held for sale |
|
|
- |
678 |
|
Available-for-sale financial assets |
|
|
152 |
77 |
|
|
|
|
12,810 |
14,725 |
|
Financial liabilities |
|
|
|
|
|
Trade and other payables |
|
|
1,309 |
937 |
|
Borrowings |
|
|
- |
384 |
|
|
|
|
1,309 |
1,321 |
Credit risk exposures
The credit risk arises principally from cash and cash equivalents and deposits with banks and financial institutions.
The Group minimises credit risk in relation to cash and cash equivalent assets by only utilising the services of the Australian "Big 4" banks for Australian held cash assets and for international cash holdings recognised international financial institutions are used.
The Group does not have a significant credit risk in relation to trade receivables.
Market risk
(a) Foreign exchange risk
Foreign exchange risk arises when future commercial transactions and recognised assets and liabilities are denominated in a currency that is not the entity's functional currency. The Group operates internationally and is exposed to foreign exchange risk arising from currency exposures to British pounds, the US dollar and the Ethiopian birr.
Sensitivity
Based on the financial instruments held at 30 June 2010, had the Australian dollar weakened/strengthened by 10% against the GBP with all other variables held constant, the Group and parent entity's post-tax loss for the year would have been $550,000 lower/$605,000 higher (2009 profit: $1,331,000 lower/$1,088,000 higher), mainly as a result of foreign exchange gains/losses on translation of GBP denominated cash equivalents. The Group equity would have been $550,000 higher/$605,000 lower (2009: $1,088,000 higher/$1,331,000 lower) had the Australian dollar weakened/strengthened by 10% against the GBP. The Group's exposure to other foreign exchange movements is not material.
Market risk
(b) Price risk
As at 30 June 2010 the Group's exposure to equity securities price risk was not material. The exposure arises from various investments held by the Group.
The Group is not currently exposed to commodity price risk.
Sensitivity
Based on the financial instruments held at 30 June 2010, if the market value of the non-current held for sale assets was plus/minus 10% higher at 30 June 2010 then all other variables held constant, the Group's total comprehensive loss for the year would have been $15,000 (2009 loss: $68,000) higher/lower. Equity for the Group would have been $15,000 (2009: $75,000) higher/lower.
(c) Interest rate risk
The Group is exposed to fluctuations in interest rates. Interest rate risk is managed by maintaining a mix of floating rate deposits. As at 30 June 2010 the Group had no interest bearing borrowings.
The Group holds no interest rate derivative financial instruments.
Sensitivity
At 30 June 2010, if interest rates had changed by +/- 50 basis points and all other variables were held constant, the Group's after tax loss and net equity would have been $33,000 (2009: $576,000) lower/higher as a result of higher/lower interest income on cash and cash equivalents.
(d) Liquidity risk
Prudent liquidity risk management implies maintaining sufficient cash and marketable securities, the availability of funding through an adequate amount of committed credit facilities and the ability to close out market positions. The Group manages liquidity risk by continuously monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and liabilities. Surplus funds are only invested in "AAA" rated financial institutions
As at the reporting date the Group has no access to undrawn credit facilities.
Fair value estimation
The fair value of financial assets and financial liabilities must be estimated for recognition and measurement or for disclosure purposes.
The fair value of financial instruments traded in active markets (such as available‑for‑sale securities) is based on quoted market prices at the balance sheet date. The quoted market price used for financial assets held by the Group is the current bid price.
The carrying value less impairment provision of trade receivables and payables are assumed to approximate their fair values due to their short term nature. The fair value of non-current financial liabilities for disclosure purposes is estimated by discounting the future contractual cash flows at the current market interest rate that is available to the Group for similar financial instruments.
3 Critical accounting estimates and judgments
Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that may have a financial impact on the entity and that are believed to be reasonable under the circumstances.
(a) Critical accounting estimates and assumptions
The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.
(i) Income taxes
The Group is subject to income taxes in Australia and jurisdictions where it has foreign operations. Significant judgment is required in determining the worldwide provision for income taxes. There are transactions and calculations undertaken during the ordinary course of business for which the ultimate tax determination is uncertain. The Group recognises liabilities for anticipated tax audit issues based on estimates of whether additional taxes will be due. Where the final tax outcome of these matters is different from the amounts that were initially recorded, such differences will impact the current and deferred tax provisions in the period in which such determination is made.
(ii) Exploration, evaluation and mining properties
The Group's main activity is exploration and evaluation for, and mining of minerals. The nature of mining and exploration activities are such that it requires interpretation of complex and difficult geological models in order to make an assessment of the size, shape, depth and quality of resources and their anticipated recoveries. The economic, geological and technical factors used to estimate mining viability may change from period to period. In addition exploration activities by their nature are inherently uncertain. Changes in all these factors can impact exploration and mining asset carrying values, provisions for rehabilitation and the recognition of deferred tax assets.
(b) Critical judgments
(i) Recoverable amounts of available for sale asset
In the year ended 30 June 2010 the Group has made a significant judgement in accordance with AASB 5 Non-current assets held for sale and discontinued operations and AASB 136 Impairment of assets about:
·; The fair value and impairment of a non-current asset held for sale. The fair value of this asset was determined using the market value of this asset at balance date, and
·; The fair value and impairment of an exploration property being the Burndi nickel project. The fair value of this asset was impaired to zero at balance date to reflect the lack of exploration results and the Company's current focus on development of the Tulu Kapi gold project.
4 Segment information
(a) Description of segments
The Group has applied AASB 8 Operating Segments from 1 July 2009. AASB 8 requires a 'management approach' under which segment information is presented on the same basis as that used for internal reporting purposes. Operating segments are now reported in a manner that is consistent with the internal reporting provided to the chief operating decision maker. The chief operating decision maker has been identified as the Chief Executive Officer.
The Group considers that it operates in distinct segments being different countries around the world.
|
|
Corporate |
Ethiopia |
Africa - other |
Philippines |
Inter-segment eliminations/unallocated |
Consolidated |
|
Revenue |
2010 $000 |
2009 $000 |
2010 $000 |
2009 $000 |
2010 $000 |
2009 $000 |
2010 $000 |
2009 $000 |
2010 $000 |
2009 $000 |
2010 $000 |
2009 $000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total segment revenue |
128 |
423 |
- |
- |
- |
- |
- |
- |
- |
- |
128 |
423 |
|
Unallocated revenue |
|
|
|
|
|
|
|
|
|
|
- |
- |
|
Total revenue |
|
|
|
|
|
|
|
|
|
|
128 |
423 |
|
Result |
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment result |
(4,947) |
(13,813) |
(1,081) |
- |
(13,911) |
(65) |
1,957 |
(11,254) |
- |
- |
(17,982) |
(25,132) |
|
Unallocated revenue net of unallocated expenses |
|
|
|
|
|
|
|
|
|
|
- |
145 |
|
Loss before tax |
|
|
|
|
|
|
|
|
|
|
(17,982) |
(24,987) |
|
Income tax benefit |
|
|
|
|
|
|
|
|
|
|
- |
- |
|
Loss after tax |
|
|
|
|
|
|
|
|
|
|
(17,982) |
(24,987) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment assets |
12,206 |
14,484 |
15,328 |
- |
145 |
12,963 |
- |
- |
- |
- |
27,679 |
27,447 |
|
4 Segment information (continued) |
|
|
|
|
|
|
|
|
Corporate |
Ethiopia |
Africa - other |
Philippines |
Inter-segment eliminations/unallocated |
Consolidated |
|
|
2010 $000 |
2009 $000 |
2010 $000 |
2009 $000 |
2010 $000 |
2009 $000 |
2010 $000 |
2009 $000 |
2010 $000 |
2009 $000 |
2010 $000 |
2009 $000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment liabilities |
273 |
279 |
1,036 |
- |
- |
1,042 |
- |
- |
- |
- |
1,309 |
1,321 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition of property plant and equipment and other non-current segment assets |
2 |
2 |
116 |
- |
- |
1,406 |
- |
11,253 |
- |
- |
118 |
12,661 |
|
Other non-cash expenses |
- |
- |
- |
- |
- |
- |
- |
- |
822 |
152 |
822 |
152 |
|
Depreciation and amortisation expense |
7 |
20 |
53 |
- |
13 |
14 |
- |
- |
- |
- |
73 |
34 |
|
Impairment of assets - other financial assets - other assets |
678 - |
10,739 - |
409 141
|
- - |
- 6,,326 |
- - |
- - |
- 11,253 |
- |
- - |
1,087 6,467 |
10,739 11,253 |
5 Revenue
|
|
|
Consolidated |
||
|
|
|
|
2010 |
2009 |
|
|
|
|
$000 |
$000 |
|
|
|
|
|
|
|
Other revenue from continuing operations |
|
|
|
|
|
Interest received |
|
|
128 |
383 |
|
Other revenue - write back of asset on sale* |
|
|
1,957 |
40 |
|
|
|
|
|
|
|
|
|
|
2,085 |
423 |
* In February 2010 the Company sold its 8% interest in the Philippines Daguma coal project for cash proceeds of $1,957,000. This asset had previously been impaired to zero thus giving rise to a write back to profit and loss of $1,957,000 in this financial year.
6 Expenses
|
|
|
Consolidated |
||
|
|
|
|
2010 |
2009 |
|
|
|
|
$000 |
$000 |
|
|
|
|
|
|
|
Loss before income tax expense includes the following specific expenses: |
|
|
||
|
|
|
|
|
|
|
Impairment of financial assets |
|
|
|
|
|
Impairment of non-current asset held for sale (i) |
|
|
(678) |
(10,739) |
|
Impairment of receivables (ii) |
|
|
(409) |
- |
|
Total impairment of financial assets |
|
|
(1,087) |
(10,739) |
|
|
|
|
|
|
|
Impairment of other assets |
|
|
|
|
|
Impairment of plant and equipment (iii) |
|
|
(141) |
- |
|
Impairment of exploration and mining properties (iv) |
|
(6,326) |
(11,253) |
|
|
Total impairment of other assets |
|
|
(6,467) |
(11,253) |
Impairments
i) The Company's investment in Carlton Resources Plc has been written down to zero.
ii) Sundry loans written down to zero.
iii) Plant at the Yubdo platinum operation written off to zero.
iv) The Company's investment in the Burundi exploration project has been written down to zero.
6 Expenses (continued)
|
|
|
Consolidated |
||
|
|
|
|
2010 |
2009 |
|
|
|
|
$000 |
$000 |
|
|
|
|
|
|
|
Loss before income tax expense includes the following specific expenses: |
|
|
||
|
|
|
|
|
|
|
Administration includes the following: |
|
|
|
|
|
Auditor fees |
|
|
(163) |
(76) |
|
Consulting expenses |
|
|
(511) |
(574) |
|
Depreciation |
|
|
(73) |
(34) |
|
Directors fees |
|
|
(283) |
(169) |
|
Employee benefits expense |
|
|
(424) |
(311) |
|
Legal fees |
|
|
(211) |
(117) |
|
Other expenses |
|
|
(1,213) |
(1,047) |
|
Rental expenses related to operating leases |
|
(205) |
(107) |
|
|
|
|
|
(3,083) |
(2,435) |
7 Income tax
|
|
|
Consolidated |
||
|
|
|
|
2010 |
2009 |
|
|
|
|
$000 |
$000 |
|
|
|
|
|
|
|
Income statement |
|
|
|
|
|
|
|
|
|
|
|
Current income tax |
|
|
|
|
|
Current income tax charge |
|
|
- |
- |
|
|
|
|
|
|
|
Deferred income tax |
|
|
|
|
|
Decrease in deferred tax liability - continuing operations |
|
|
- |
- |
|
Income tax expense reported in statement of comprehensive income |
|
|
- |
- |
|
|
|
|
|
|
|
Unrecognised deferred tax balances |
|
|
|
|
|
|
|
|
|
|
|
Unrecognised deferred tax assets - Revenue losses |
|
|
3,985 |
1,596 |
|
Unrecognised deferred tax assets - Capital losses |
|
|
9,425 |
4,324 |
|
Unrecognised deferred tax assets - Temporary differences |
|
|
10,567 |
5,772 |
|
Net unrecognised deferred tax assets |
|
|
23,978 |
11,692 |
7 Income tax (continued)
|
|
|
Consolidated |
||
|
|
|
|
2010 |
2009 |
|
|
|
|
$000 |
$000 |
|
Reconciliation to income tax expense to prima facie tax benefit |
||||
|
|
|
|
|
|
|
Loss from continuing operations before income tax |
|
(11,015) |
(24,987) |
|
|
Loss from discontinued operations before income tax |
|
(6,967) |
|
|
|
|
|
|
|
|
|
Income tax benefit @ 30% (2009 - 30%) |
|
|
(5,395) |
(7,496) |
|
|
|
|
|
|
|
Difference in overseas tax rates |
|
|
(5) |
1 |
|
Tax effect on amounts which are not deductible/(assessable) |
|
|
|
|
|
Impairment of exploration and mining properties |
|
|
- |
3,376 |
|
Share-based payments |
|
|
247 |
45 |
|
Foreign expenditure |
|
|
696 |
640 |
|
Sundry items |
|
|
169 |
(16) |
|
|
|
|
(4,288) |
(3,450) |
|
Benefit of tax losses and temporary differences not brought to account |
|
|
4,288 |
3,450 |
|
Income tax expense
|
|
|
- |
- |
|
|
|
|
|
|
|
The Australian tax consolidation regime does not apply to the group. |
||||
8 Current assets - Cash and cash equivalents
|
|
|
Consolidated |
|||
|
|
|
|
2010 |
2009 |
|
|
|
|
|
$000 |
$000 |
|
|
|
|
|
|
|
|
|
Cash at bank and on hand |
|
|
259 |
342 |
|
|
Deposits at call |
|
|
11,603 |
12,646 |
|
|
Term deposits |
|
|
- |
32 |
|
|
|
|
|
11,862 |
13,020 |
|
Interest earned from cash accounts and deposits ranged from 0% to 4.5% per annum (2009: 0% - 3.6%).
Risk exposure
The Group's exposure to interest rate risk is discussed in Note 2. The maximum exposure to credit risk at the reporting date is the carrying amount of cash and cash equivalents noted above.
9 Current assets - Trade and other receivables
|
|
|
Consolidated |
||
|
|
|
|
2010 |
2009 |
|
|
|
|
$000 |
$000 |
|
|
|
|
|
|
|
GST/VAT refund |
|
|
96 |
34 |
|
Prepayments |
|
|
344 |
25 |
|
Rent security bond |
|
|
123 |
72 |
|
Employee loans (note 21) |
|
|
136 |
274 |
|
Other receivables |
|
|
97 |
79 |
|
|
|
|
796 |
484 |
10 Current assets - Non-current asset held for sale
|
|
|
Consolidated |
||
|
|
|
|
2010 |
2009 |
|
|
|
|
$000 |
$000 |
|
|
|
|
|
|
|
Opening balance |
|
|
678 |
11,417 |
|
Impairment charged to profit and loss |
|
|
(678) |
(10,739) |
|
|
|
|
|
|
|
|
|
|
- |
678 |
An impairment charge has been raised to reflect the fair value less estimated cost of sale of the asset as at the balance sheet date.
11 Non-current assets - Receivables
|
|
|
Consolidated |
||
|
|
|
|
2010 |
2009 |
|
|
|
|
$000 |
$000 |
|
|
|
|
|
|
|
Non-current |
|
|
|
|
|
Loan to others |
|
|
- |
466 |
|
|
|
|
|
|
|
|
|
|
- |
466 |
Loans are carried at their net recoverable amount and are non-interest bearing.
Risk Exposure
Information concerning the Group's exposure to credit risk, foreign exchange and interest rate risk is provided in Note 2. The maximum exposure for credit risk at the reporting date is the carrying value of the receivables noted above.
12 Non-current assets - Available-for-sale financial assets
|
|
|
Consolidated |
||
|
|
|
|
2010 |
2009 |
|
|
|
|
$000 |
$000 |
|
|
|
|
|
|
|
Opening balance |
|
|
77 |
84 |
|
Additions |
|
|
60 |
40 |
|
Revaluation charged to equity |
|
|
15 |
(47) |
|
|
|
|
|
|
|
|
|
|
152 |
77 |
13 Non-current assets - Property, plant and equipment
Consolidated
|
|
|
Plant & equipment $000 |
Motor vehicles $000 |
Total $000 |
|
|
|
|
|
|
|
At 30 June 2008 |
|
|
|
|
|
Cost |
|
289 |
39 |
328 |
|
Accumulated depreciation |
|
(248) |
(14) |
(262) |
|
Net book amount |
|
41 |
25 |
66 |
|
|
|
|
|
|
|
Year ended 30 June 2009 |
|
|
|
|
|
Opening net book amount |
|
41 |
25 |
66 |
|
Additions |
|
2 |
- |
2 |
|
Disposal |
|
(1) |
- |
(1) |
|
Depreciation charge |
|
(22) |
(12) |
(34) |
|
Closing net book |
|
20 |
13 |
33 |
|
|
|
|
|
|
|
At 30 June 2009 |
|
|
|
|
|
Cost |
|
289 |
39 |
328 |
|
Accumulated depreciation |
|
(269) |
(26) |
(295) |
|
Net book amount |
|
20 |
13 |
33 |
|
Year ended 30 June 2010 |
|
|
|
|
|
Opening net book amount |
|
20 |
13 |
33 |
|
Additions |
|
419 |
162 |
581 |
|
Depreciation charge |
|
(60) |
(13) |
(73) |
|
Impairment charge |
|
(114) |
(27) |
(141) |
|
Closing net book |
|
265 |
135 |
400 |
|
|
|
|
|
|
|
At 30 June 2010 |
|
|
|
|
|
Cost |
|
396 |
205 |
601 |
|
Accumulated depreciation |
|
(131) |
(70) |
(201) |
|
Net book amount |
|
265 |
135 |
400 |
During the year the Company completed a takeover of 100% of the issued capital of Minerva, Resources Plc for a total consideration of $3,237,725. As part of this acquisition $422,519 was allocated to the plant and equipment. The remaining amount of consideration was allocated to other assets and liabilities assumed as part of the acquisition. This acquisition was considered to be an asset acquisition rather than a business combination.
The acquisition is not deemed to be a business combination under AASB 3 Business Combinations as the assets and liabilities acquired are not considered to represent a business.
14 Non-current assets - Exploration, evaluation and mining properties
|
|
|
Consolidated |
||
|
|
|
|
|
Total |
|
|
|
|
|
$000 |
|
|
|
|
|
|
|
At 30 June 2008 |
|
|
|
|
|
Cost |
|
|
|
11,285 |
|
|
|
|
|
|
|
Year ended 30 June 2009 |
|
|
|
|
|
Opening net book amount |
|
|
|
11,285 |
|
Additions |
|
|
|
12,659 |
|
Exploration write off |
|
|
|
(4,257) |
|
Impairment |
|
|
|
(6,998) |
|
Closing net book |
|
|
|
12,689 |
|
|
|
|
|
|
|
At 30 June 2009 |
|
|
|
|
|
Cost |
|
|
|
23,944 |
|
Accumulated impairment |
|
|
|
(11,255) |
|
Net book amount |
|
|
|
12,689 |
|
|
|
|
|
|
|
Year ended 30 June 2010 |
|
|
|
|
|
Opening net book amount |
|
|
|
12,689 |
|
Additions |
|
|
|
15,393 |
|
Write back of impairment |
|
|
|
1,957 |
|
Disposal |
|
|
|
(8,283) |
|
Impairment charge - Burundi |
|
|
|
(6,326) |
|
Closing net book |
|
|
|
14,469 |
|
|
|
|
|
|
|
At 30 June 2010 |
|
|
|
|
|
Cost |
|
|
|
14,469 |
|
Accumulated impairment |
|
|
|
- |
|
|
|
|
|
|
|
Net book amount |
|
|
|
12,689 |
Ultimate recoupment of costs carried forward for mining properties, exploration and evaluation is dependent upon:
- continuance of the Group's rights to tenure of the areas of interest;
- results of future exploration; and
- recoupment of costs through successful development and commercial exploitation, or alternatively by sale of the respective areas.
14 Non-current assets - Exploration, evaluation and mining properties (continued)
During the year the Company completed a takeover of 100% of the issued capital of Minerva, Resources Plc for a total consideration of $3,237,725. As part of this acquisition $3,288,602 was allocated to the Minerva Resources gold tenements in Ethiopia. The remaining amount of consideration was allocated to other assets and liabilities assumed as part of the acquisition. This acquisition was considered to be an asset acquisition rather than a business combination.
The acquisition is not deemed to be a business combination under AASB 3 Business Combinations as the assets and liabilities acquired are not considered to represent a business.
Consistent with the Company's focus on development of the Tulu Kapi gold project the Company has written down to zero both the Swaziland gold and Burundi nickel projects.
15 Deferred tax asset
The balance comprises temporary differences attributable to:
|
|
|
Consolidated |
||
|
|
|
|
2010 |
2009 |
|
|
|
|
$000 |
$000 |
|
|
|
|
|
|
|
Amounts recognised in profit and loss: |
|
|
|
|
|
Accruals |
|
|
19 |
23 |
|
Unrealised foreign exchange loss |
|
|
175 |
- |
|
Provision for impairment of non-current asset held for sale* |
|
- |
172 |
|
|
|
|
|
194 |
195 |
|
Set-off against deferred tax liabilities (note 18) |
|
(194) |
(195) |
|
|
|
|
|
- |
- |
|
Deferred tax assets available within 12 months |
|
- |
- |
|
|
Deferred tax assets available after 12 months |
|
194 |
195 |
|
|
|
|
|
194 |
195 |
\* The deferred tax asset attributable to provision for impairment of non-current asset held for sale has been booked only to the extent that it can be offset against deferred tax liabilities.
16 Current liabilities - Trade and other payables
|
|
|
Consolidated |
||
|
|
|
|
2010 |
2009 |
|
|
|
|
$000 |
$000 |
|
|
|
|
|
|
|
Trade payables |
|
|
1,198 |
862 |
|
Other payables and accruals |
|
|
111 |
75 |
|
|
|
|
|
|
|
|
|
|
1,309 |
937 |
17 Non-current liabilities - Borrowings
|
|
|
Consolidated |
||
|
|
|
|
2010 |
2009 |
|
|
|
|
$000 |
$000 |
|
Unsecured |
|
|
|
|
|
Other loans |
|
|
- |
384 |
|
|
|
|
- |
384 |
18 Deferred tax liabilities
The balance comprises temporary differences attributable to:
|
|
|
Consolidated |
||
|
|
|
|
2010 |
2009 |
|
|
|
|
$000 |
$000 |
|
|
|
|
|
|
|
Amounts recognised in profit and loss: |
|
|
|
|
|
Unrealised foreign gains/(losses) on cash assets |
|
|
194 |
195 |
|
|
|
|
194 |
195 |
|
Set-off against deferred tax assets (note 15) |
|
|
(194) |
(195) |
|
|
|
|
- |
- |
|
Deferred tax liabilities to be settled within 12 months |
|
|
- |
195 |
|
Deferred tax liabilities to be settled after 12 months |
|
|
194 |
- |
|
|
|
|
194 |
195 |
19 Contributed equity
|
(a) Share capital |
|
|
||
|
|
2010 |
2009 |
2010 |
2009 |
|
|
Shares |
Shares |
$000 |
$000 |
|
|
|
|
|
|
|
Ordinary shares |
|
|
|
|
|
Ordinary shares fully paid |
304,143,276 |
189,892,224 |
123,474 |
104,835 |
|
Employee share plan shares |
13,850,000 |
850,000 |
- |
- |
|
Total contributed equity |
317,993,276 |
190,742,224 |
123,474 |
104,835 |
19 Contributed equity (continued)
|
(b) Movements in ordinary share capital: |
|||||
|
|
|
|
|
|
|
|
Date |
Details |
|
Number of shares |
Issue price |
$000 |
|
|
|
|
|
|
|
|
1/7/2008 |
Opening balance |
|
162,273,039 |
|
97,116 |
|
22/7/2008 |
Acquisition of subsidiary & services contract |
|
17,494,071 |
$0.40 |
6,998 |
|
22/12/2008 |
Employee share plan loan repaid - proceeds received |
|
7,766,667 |
|
528 |
|
13/4/2009 |
Employee share plan loan repaid - proceeds received |
|
200,000 |
|
16 |
|
20/5/2009 |
Further consideration for acquisition of subsidiary |
|
2,158,447 |
$0.09 |
194 |
|
|
Less: issue transactions costs |
|
- |
|
(18) |
|
|
|
|
|
|
|
|
30 June 2009 |
Balance |
|
189,892,224 |
|
104,835 |
|
Date |
Details |
|
Number of shares |
Issue price |
$000 |
|
|
|
|
|
|
|
|
1/7/2009 |
Opening balance |
|
189,892,224 |
|
104,835 |
|
1/7/09 - 23/10/09** |
Acquisition of Minerva Resources Plc |
|
30,858,867 |
$0.10 - $0.14 |
3,238 |
|
18/12/2009 |
Placement |
|
32,142,858 |
$0.13 |
3,934 |
|
14/5/2010 |
Employee share sign-on bonus |
|
1,000,000 |
$0.24 |
240 |
|
14/6/2010 |
Placement |
|
29,749,327 |
GBP0.116 |
5,972 |
|
16/6/2010 |
Acquisition of exploration tenements |
|
20,000,000 |
GBP0.16* |
5,400 |
|
30/6/2010 |
Options exercised |
|
500,000 |
$0.31 |
155 |
|
|
Less: issue transactions costs |
|
- |
|
(300) |
|
|
|
|
|
|
|
|
30 June 2010 |
Balance |
|
304,143,276 |
|
123,474 |
* Under ASSB3 the deemed issue price for accounting purposes is the price on the day the shares are issued as opposed to the issue price of GBP0.10 that was agreed at the time of entering into the acquisition contracts.
** During the year the Group acquired 100% of Minerva Resources Plc via a 1 for 5 scrip issue. The Nyota shares issued to complete this takeover were issued during the period from July to October at deemed issue prices that ranged between $0.10 and $0.14.
19 Contributed equity (continued)
|
(c) Movement in Employee Share Plan shares issued with limited recourse employee loans: |
|||||
|
|
|
|
|
|
|
|
Date |
Details |
Notes |
Number of shares |
|
|
|
Opening balance |
|
|
8,816,667 |
|
|
|
22/12/2008 |
Employee share plan loan repaid - shares transferred to ordinary share capital |
|
(7,766,667) |
|
|
|
13/4/2009 |
Employee share plan loan repaid - shares transferred to ordinary share capital |
|
(200,000) |
|
|
|
30 June 2009 |
Balance |
|
850,000 |
|
|
|
3/9/2009 |
Employee share plan issue |
|
5,000,000 |
|
|
|
24/2/2010 |
Employee share plan issue |
|
8,000,000 |
|
|
|
30 June 2010 |
Balance |
|
13,850,000 |
|
|
|
|
|
|
|
|
|
As at 30 June 2010 the weighted average issue price of issued employee share plans shares on issue is $0.18. Refer to note 28 for details of the employee share plan.
|
(d) Share options |
Number of options |
|
|
|
2010 |
2009 |
|
|
|
|
|
Options exercisable at $0.31 on or before 30 June 2010 |
- |
500,000 |
|
Options exercisable at GBP0.174 on or before 13 June 2014 |
22,311,995 |
- |
|
Employee option plan options (refer note 28) |
|
|
|
- exercisable at $0.52 on or before 30 June 2010 |
- |
125,000 |
|
- exercisable at $0.11 on or before 30 September 2012 |
5,800,000 |
- |
|
- exercisable at $0.13 on or before 31 December 2012 |
1,280,000 |
|
|
- exercisable at $0.15 on or before 31 December 2012 |
7,000,000 |
- |
|
- exercisable at $0.17 on or before 30 June 2013 |
250,000 |
- |
|
|
36,641,995 |
625,000 |
19 Contributed equity (continued)
|
(e) Movements in share options |
|
|
|
|
||
|
|
Number of options |
|||||
|
|
|
|
2010 |
2009 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
To acquire ordinary fully paid shares at $0.95 on or before 30 June 2009: |
|
|||||
|
Beginning of the financial year |
|
|
- |
450,000 |
|
|
|
Options expired during year |
|
|
- |
(450,000) |
|
|
|
|
|
|
|
|
|
|
|
Balance at end of financial year |
|
|
- |
- |
|
|
|
|
|
|
|
|
|
|
|
To acquire ordinary fully paid shares at $0.31 on or before 30 June 2010: |
|
|
|
|||
|
Beginning of the financial year |
|
|
500,000 |
500,000 |
|
|
|
Expired during year |
|
|
(500,000) |
- |
|
|
|
|
|
|
|
|
|
|
|
Balance at end of financial year |
|
|
- |
500,000 |
|
|
|
|
|
|
|
|
|
|
|
To acquire ordinary fully paid shares at GBP0.174 on or before 13 June 2014: |
|
|
||||
|
Beginning of the financial year |
|
|
- |
- |
|
|
|
Issued during year |
|
|
22,311,995 |
- |
|
|
|
|
|
|
|
|
|
|
|
Balance at end of financial year |
|
|
22,311,995 |
- |
|
|
|
Refer to note 28 for movements in the employee option plan including details of options issued, exercised, and cancelled during the year and options outstanding at the end of the financial year. |
|
|||||
(f) Ordinary shares
Ordinary shares entitle the holder to participate in dividends and the proceeds on winding up of the Company in proportion to the number and amounts paid on the shares held.
On a show of hands every holder of ordinary shares present at a meeting in person or by proxy, is entitled to one vote, and upon a poll each share is entitled to one vote.
(g) Employee share scheme
Information relating to the employee share scheme, including details of shares issued under the scheme, is set out in note 28.
(h) Capital risk management
The Group's objectives when managing capital are to safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal capital structure to reduce the cost of capital. In order to maintain or adjust the capital structure, the Group may issue new shares or sell assets. The Company has no debt.
20 Reserves
Movements in reserves during the year were:
|
|
|
Consolidated |
||
|
|
|
|
2010 |
2009 |
|
|
|
|
$000 |
$000 |
|
|
|
|
|
|
|
Available-for-sale investments revaluation reserve |
|
|
|
|
|
Opening balance |
|
|
(130) |
(83) |
|
Revaluation |
|
|
15 |
(47) |
|
Closing balance |
|
|
(115) |
(130) |
|
|
|
|
|
|
|
Share-based payments reserve |
|
|
|
|
|
Opening balance |
|
|
2,040 |
1,888 |
|
Expense for the year |
|
|
582 |
152 |
|
Closing balance |
|
|
2,622 |
2,040 |
|
|
|
|
|
|
|
Foreign currency translation reserve |
|
|
|
|
|
Opening balance |
|
|
90 |
98 |
|
Currency translation differences |
|
|
(1,010) |
(8) |
|
Closing balance |
|
|
(920) |
90 |
|
|
|
|
|
|
|
Convertible note premium reserve |
|
|
|
|
|
Opening and closing balance |
|
|
219 |
219 |
|
|
|
|
|
|
|
|
|
|
1,806 |
2,219 |
Nature and purpose of reserves
(i) Available-for-sale investments revaluation reserve
Changes in the fair value and exchange differences arising on translation of investments, such as equities, classified as available-for-sale financial assets, are taken to the available-for-sale investments revaluation reserve. Amounts are recognised in profit and loss when the associated assets are sold or impaired.
(ii) Share-based payments reserve
The share-based payments reserve is used to recognise the fair value of employee share plan shares issued with an attaching limited recourse employee loan; and employee option plan options issued but not exercised.
(iii) Foreign currency translation reserve
Exchange differences arising on translation of foreign controlled entities are taken to the foreign currency translation reserve. The reserve is recognised in profit and loss when the net investment is disposed of.
(iv) Convertible note premium reserve
This reserve arose from an historic issue of convertible notes by the Company and relates to the value of the conversion rights that attached to the convertible notes issued, net of tax.
21 Key management personnel disclosures
Refer to pages 14 - 23 for details of directors and key management personnel.
(a) Key management personnel compensation
|
|
|
Consolidated |
||
|
|
|
|
2010 |
2009 |
|
|
|
|
$ |
$ |
|
|
|
|
|
|
|
Short-term employee benefits |
|
|
1,373,700 |
854,006 |
|
Post-employment benefits |
|
|
27,908 |
22,766 |
|
Share-based payments |
|
|
655,944 |
87,131 |
|
|
|
|
2,057,552 |
963,903 |
(b) Equity instruments disclosure relating to key management personnel
(i) Shares and options provided as remuneration and shares issued on exercise of such options
Details of shares and options provided as remuneration, and of shares issued on the exercise of such options, together with the terms and conditions of the shares and options, can be found in section D of the remuneration report.
(ii) Option holdings
No options were held by directors or key management personnel in the 2009 year. The numbers of options in the Company held during the current financial year by each director of Nyota Minerals Limited and other key management personnel of the Group, including their personally related parties, are set out below.
|
Name |
Balance at start of the year |
Granted as compensation |
Exercised |
Balance at end of the year |
Vested and exercisable |
Unvested |
Directors
|
D Pettman |
- |
2,000,000 |
- |
2,000,000 |
- |
2,000,000 |
|
M Churchouse |
- |
2,000,000 |
- |
2,000,000 |
- |
2,000,000 |
|
T McConnachie |
- |
1,750,000 |
- |
1,750,000 |
- |
1,750,000 |
|
Other key management personnel |
||||||
|
M Burchnall |
- |
450,000 |
- |
450,000 |
- |
450,000 |
|
R Jarvis |
- |
450,000 |
- |
450,000 |
- |
450,000 |
21 Key management personnel disclosures (continued)
(iii) Shareholdings
The numbers of shares in the Company held during the financial year by each director of Nyota Minerals Limited and other key management personnel of the Group, including their personally related parties, are set out below.
|
2010
Name |
Balance at the start of the year |
Granted during the year |
Balance at the end of the year |
|
Directors |
|
||
|
M Sturgess |
2,069,855 |
4,750,000 |
7,819,855 |
|
D Pettman |
220,000 |
- |
320,000 |
|
M Langoulant |
1,016,129 |
2,250,000 |
3,486,129 |
|
E Kirby |
1,016,129 |
2,250,000 |
3,325,729 |
|
M Churchouse |
- |
- |
- |
|
T McConnachie |
- |
- |
- |
|
Other key management personnel of the Group |
|
||
|
T Tucker |
- |
1,000,000 |
1,000,000 |
|
M Burchnall |
250,000 |
1,500,000 |
1,750,000 |
|
R Jarvis |
250,000 |
1,500,000 |
1,750,000 |
|
2009
Name |
Balance at the start of the year |
Granted during the year |
Balance at the end of the year |
|
Directors |
|
||
|
M Sturgess |
2,069,855 |
- |
2,069,855 |
|
E Kirby |
1,016,129 |
- |
1,016,129 |
|
T McConnachie |
- |
- |
- |
|
M Langoulant |
1,016,129 |
- |
1,016,129 |
|
Other key management personnel of the Group |
|
||
|
M Churchouse |
- |
- |
- |
|
M Burchnall |
250,000 |
- |
250,000 |
|
R Jarvis |
250,000 |
- |
250,000 |
21 Key management personnel disclosures (continued)
(c) Loans to key management personnel
Details of loans made to directors of Nyota Minerals limited and other key personnel, including their personally related parties are set out below:
|
Name |
Balance at the start of the year $ |
Movement during the year $ |
Balance at the end of the year $ |
Interest paid or payable during the year $ |
|
M Sturgess |
138,000 |
(138,000) |
- |
782 |
|
E Kirby |
68,000 |
- |
68,000 |
4,080 |
|
M Langoulant |
68,000 |
- |
68,000 |
4,080 |
|
|
274,000 |
(138,000) |
136,000 |
8,942 |
The above loans were advanced on the following basis:
·; Term - 2 years from 13 May 2009;
·; Interest rate - 6% pa, payable 6 monthly in arrears;
·; Security - lien over Nyota Minerals shares to the value of the loan; and
·; Principal repayment - 13 May 2011
22 Remuneration of auditors
During the year the following fees were paid or payable for services provided by the auditor of the parent entity, its related practices and non-related firms:
|
|
|
Consolidated |
||
|
|
|
|
2010 |
2009 |
|
|
|
|
$ |
$ |
|
|
|
|
|
|
|
a) PricewaterhouseCoopers- Australia |
||||
|
Audit and review of financial statements |
|
|
101,000 |
72,000 |
|
b) Non PricewaterhouseCoopers audit firms |
|
|
|
|
|
Audit and review of financial statements |
|
|
62,485 |
4,496 |
|
|
|
|
163,485 |
76,496 |
23 Contingencies/Commitments
(a) Contingent liabilities
The Group had no known contingent liabilities as at 30 June 2010 (2009: Nil).
(b) Contingent assets
Although the Group no longer has any legal interest in the Swaziland gold project it has retained a beneficial right to 50% of any sale proceeds should this project be on-sold to a third party. The Group is unable to place a potential value on this contingent asset. Apart from the above the Group does not have any known contingent assets as at 30 June 2010 (2009: Nil).
(c) Commitments
|
|
|
Consolidated |
||
|
|
|
|
2010 |
2009 |
|
|
|
|
$000 |
$000 |
|
|
|
|
|
|
|
Exploration program commitments payable |
|
|
|
|
|
Within one year |
|
|
4,240 |
1,332 |
|
Later than one year but not later than 5 years |
|
5,466 |
1,332 |
|
|
|
|
|
|
|
|
|
|
9,706 |
2,664 |
|
24 Related party transactions
(a) Parent entity
The ultimate parent entity in the wholly-owned group and the ultimate Australian parent entity is Nyota Minerals Limited.
(b) Key management personnel
Disclosures relating to key management personnel are set out in note 21.
25 Events occurring after the balance sheet date
No other matters or circumstances have arisen since 30 June 2010 that have significantly affected, or may significantly affect:
(a) the Group's operations in future financial years;
(b) the results of those operations in future financial years; or
(c) the Group's state of affairs in future financial years.
26 Reconciliation of loss after income tax to net cash outflow from operating activities
|
|
|
Consolidated |
||
|
|
|
|
2010 |
2009 |
|
|
|
|
$000 |
$000 |
|
|
|
|
|
|
|
Loss after tax |
|
|
(17,982) |
(24,987) |
|
Depreciation and amortisation |
|
|
73 |
34 |
|
Sundry income |
|
|
- |
(40) |
|
Gain on sale of exploration interest |
|
|
(1,957) |
- |
|
|
|
|
|
- |
|
Foreign exchange (gain)/loss |
|
|
1,641 |
270 |
|
Share based compensation |
|
|
822 |
152 |
|
Takeover transaction costs |
|
|
- |
561 |
|
Loss on disposal of discontinued operations |
|
|
6,967 |
- |
|
Impairment of assets |
|
|
7,554 |
21,992 |
|
(Increase)/decrease in prepayments |
|
|
(386) |
- |
|
(Increase)/decrease in receivables |
|
|
58 |
47 |
|
(Decrease)/increase in payables |
|
|
(372) |
(301) |
|
|
|
|
|
|
|
Net cash flow used in operating activities |
|
|
(3,582) |
(2,272) |
Non-cash financing activities
During the 2010 year the company issued:
·; 30,858,867 ordinary shares at a deemed issue price of GBP0.10 as consideration for the acquisition of Minerva Resources exploration tenements.
·; 20,000,000 ordinary shares at GBP0.16 as consideration for the acquisition of additional Ethiopian exploration tenements.
During the 2009 year the company issued:
·; 17,494,071 ordinary shares at $0.40 as consideration for the acquisition of a subsidiary and for Project management contract services; and
·; 2,158,477 ordinary shares at $0.09 as final consideration with respect to the acquisition of the Burundi nickel project.
27 Loss per share
|
|
|
Consolidated |
||
|
|
|
|
2010 |
2009 |
|
|
|
|
Cents |
Cents |
|
|
|
|
|
|
|
a) Basic loss per share |
|
|
|
|
|
For continuing operations |
|
|
(4.5) |
(13.9) |
|
For discontinued operations |
|
|
(3.1) |
- |
|
Total basic loss per share |
|
|
(7.6) |
(13.9) |
|
|
|
|
|
|
27 Loss per share (continued)
|
|
|
|
Consolidated |
|
|
|
|
|
2010 |
2009 |
|
|
|
|
Cents |
Cents |
|
|
|
|
|
|
|
b) Diluted loss per share |
|
|
|
|
|
For continuing operations |
|
|
(4.5) |
(13.9) |
|
For discontinued operations |
|
|
(3.1) |
- |
|
Total basic loss per share |
|
|
(7.6) |
(13.9) |
c) Reconciliation of loss used in calculating loss per share
The following reflects the operating loss and share data used in the calculations of basic and diluted loss per share:
|
|
2010 |
2009 |
|
|
$000 |
$000 |
|
|
|
|
|
Loss for year used in calculating basic and diluted loss per share |
(17,982) |
(24,987) |
|
|
|
|
|
|
Number |
Number |
|
d) weighted average of shares used as the denominator
|
|
|
|
Weighted average number of ordinary shares used in calculating basic loss per share |
237,884,476 |
179,062,193 |
|
Effect of dilutive securities: |
|
|
|
Employee share plan shares |
13,850,000 |
850,000 |
|
Options |
8,408,305 |
- |
|
Adjusted weighted average number of ordinary shares used in calculating diluted loss per share |
260,142,781 |
179,912,193 |
Information concerning the classification of securities:
Certain granted options have not been included in the determination of diluted loss per share as they are not dilutive. Details relating to all options are set out in the Directors' Report and note 19.
28 Share-based payments
(a) Employee Option Plan
Employee incentive option plans have been approved at shareholder general meetings, the latest being 3 September 2009. The Employee Option Plan is designed to provide long term incentives for senior managers and above (including executive directors) to deliver long term shareholder returns. Under the plan, participants are granted options which only vest if certain performance standards are met. Participation in the plan is at the board's discretion and no individual has a contractual right to participate in the plan or to receive any guaranteed benefits.
Options are granted under the plan for no consideration. Options granted under the plan carry no dividend or voting rights.
Set out below are summaries of options granted under the plan:
|
Grant date |
Expiry date |
Exercise price |
Opening balance |
Granted during the year |
Closing balance |
Vested and exercisable at year end |
|
3/9/2009 |
30/9/2012 |
$0.11 |
- |
5,800,000 |
5,800,000 |
- |
|
21/12/2009 |
31/12/2012 |
$0.13 |
- |
1,280,000 |
1,280,000 |
- |
|
23/2/2010 |
31/12/2012 |
$0.15 |
- |
7,000,000 |
7,000,000 |
- |
|
22/3/2010 |
30/6/2013 |
$0.17 |
- |
250,000 |
250,000 |
- |
The average weighted exercise price of the above options is $0.132.
28 Share-based payments (continued)
The following table lists the inputs to the Black and Scholes model used:
|
|
3/9/2009 |
21/12/2009 |
23/2/2010 |
22/3/2010 |
|
Dividend yield % |
- |
- |
- |
- |
|
Expected volatility % |
100% |
100% |
100% |
100% |
|
Risk-free interest rate % |
3.15% |
4.25% |
4.75% |
4.75% |
|
Life of option |
37 months |
36 months |
34 months |
39 months |
|
Exercise price |
$0.11 |
$0.13 |
$0.15 |
$0.17 |
|
Grant date share price |
$0.11 |
$0.13 |
$0.15 |
$0.17 |
|
Fair value |
$0.039 |
$0.042 |
$0.047 |
$0.056 |
No employee incentive options were issued in the financial year ended 30 June 2009.
(b) Employee Share Plan
Employee incentive share plans have been approved at shareholder general meetings, the latest being 3 September 2009.
For details of the shares issued to directors and key management personnel refer to note 21. During the year the Company issued 750,000 employee shares on 3 September 2009 to other employees that were not either directors or key management personnel.
No employee share plan shares were issued in the year ended 30 June 2009.
(c) Expenses arising from share based payments
|
|
|
Consolidated |
||
|
|
|
|
2010 |
2009 |
|
|
|
|
$000 |
$000 |
|
|
|
|
|
|
|
Shares and options issued under employee share and option plans |
|
|
582 |
152 |
|
Employee share sign-on bonus |
|
|
240 |
- |
|
|
|
|
822 |
152 |
29 Parent Entity Disclosures
The individual financial statements for the parent entity show the following aggregate amounts:
Balance sheet
|
|
|
|
|
|
2010 $000 |
2009 $000 |
|
Assets |
|
|
|
Current assets |
12,041 |
13,920 |
|
Non-current assets |
15,370 |
12,484 |
|
Total assets |
27,411 |
26,404 |
|
|
|
|
|
Liabilities |
|
|
|
Current liabilities |
273 |
279 |
|
Total liabilities |
273 |
279 |
|
|
|
|
|
Equity |
|
|
|
Issued capital |
123,474 |
104,835 |
|
Retained earnings |
(99,062) |
(80,838) |
|
Reserves |
|
|
|
Asset revaluation reserve |
(115) |
(130) |
|
Convertible note premium reserve |
219 |
219 |
|
Share-based payments |
2,622 |
2,039 |
|
Total equity |
27,138 |
26,125 |
Financial performance
|
|
|
|
|
Loss for the year |
(18,350) |
(24,987) |
|
Other comprehensive income |
125 |
(55) |
|
Total comprehensive loss |
(18,350) |
(25,042) |
a) Guarantees entered into by the parent entity
The parent entity has not provided financial guaranties for any of its subsidiaries (2009: nil).
b) Contingent liabilities of the parent
The parent entity did not have any contingent liabilities as at 30 June 2010 (2009: nil).
a) Contractual commitments
The parent entity did not have any contractual commitments as at 30 June 2010 (2009: nil).
30 Discontinued operations
(a) Description
On 24 May 2010 the Company announced its intention to divest its interest in the Swaziland gold project for a nominal $1 sale consideration. This has relieved The Company from any further funding or management commitments in relation to this project. It has however retained a beneficial entitlement to 50% of any sale proceeds should the project be on-sold by its previous joint venture party.
Financial information relating to the discontinued operations for the period to the date of disposal is set out below.
(b) Financial performance and cash flow information
The financial performance and cash flow information presented are for the years ended 30 June 2010 and 30 June 2009.
|
|
2010 |
2009 |
|
|
|
|
$000 |
$000 |
|
|
|
|
|
|
|
|
|
Revenue |
- |
- |
|
|
|
Expenses |
(6,967) |
(43) |
|
|
|
Loss before income tax |
(6,967) |
(43) |
|
|
|
|
|
|
|
|
|
Income tax benefit |
- |
- |
|
|
|
Loss after income tax of discontinued operations |
(6,967) |
- |
|
|
|
|
|
|
|
|
|
Loss on sale of the division before income tax |
(6,967) |
- |
|
|
|
Income tax expense |
- |
- |
|
|
|
Loss on sale of the division after income tax |
(6,967) |
- |
|
|
|
|
|
|
|
|
|
Loss from discontinued operations |
(6,967) |
(43) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash outflow from operating activities |
- |
(43) |
|
|
|
Net cash outflow from investing activities |
(54) |
(243) |
|
|
|
Net decrease in cash utilised by discontinued operations |
(54) |
(286) |
|
|
30 Discontinued operation (continued)
(c) Carrying amounts of assets and liabilities
The carrying amounts of assets and liabilities at the date of sale 24 May 2010 and 30 June 2009 were:
|
|
|
|
||
|
|
2010 |
2009 |
|
|
|
|
$000 |
$000 |
|
|
|
|
|
|
|
|
|
Cash |
- |
28 |
|
|
|
Trade and other receivables |
- |
74 |
|
|
|
Property, plant and equipment |
- |
1 |
|
|
|
Exploration, evaluation and mining properties |
7,287 |
7,233 |
|
|
|
Total assets |
7,287 |
7,336 |
|
|
|
|
|
|
|
|
|
Trade and other payables |
- |
72 |
|
|
|
Borrowings |
320 |
384 |
|
|
|
Total liabilities |
320 |
456 |
|
|
|
|
|
|
|
|
|
Net assets |
6,967 |
6,880 |
|
|
(d) Details of the sale of the discontinued operations
|
|
|
|
||
|
|
2010 |
2009 |
|
|
|
|
$000 |
$000 |
|
|
|
|
|
|
|
|
|
Consideration received: |
- |
- |
|
|
|
Carrying amount of net assets sold |
(6,967) |
- |
|
|
|
Loss on sale before income tax |
(6,967) |
- |
|
|
|
|
|
|
|
|
|
Income tax expense |
- |
- |
|
|
|
Loss on sale after income tax |
(6,967) |
- |
|
|
31 Accumulated losses
Movements in accumulated losses were as follows:
|
|
|
Consolidated |
||
|
|
|
|
2010 |
2009 |
|
|
|
|
$000 |
$000 |
|
|
|
|
|
|
|
Balance at beginning of year |
|
|
(80,928) |
(55,941) |
|
Net (loss)/profit attributable to members of Nyota Minerals Limited |
|
|
(17,982) |
(24,987) |
|
|
|
|
|
|
|
Balance at end of financial year |
|
|
(98,910) |
(80,928) |
Related Shares:
Nyota Minerals