29th Sep 2006 07:00
Murchison United NL29 September 2006 ABN 59 009 087 852 ANNUAL REPORT 30 JUNE 2006 Murchison United NL Ground Floor 1121 Hay Street WEST PERTH WA 6005 MURCHISON UNITED NL (ABN 59 009 087 852) CONTENTS TO FINANCIAL REPORT Corporate Information......................................................... 2 Directors' Report..............................................................3 Corporate Governance Statement................................................15 Schedule of Interests in Mining Tenements.....................................18 Income Statement............................................................. 19 Balance Sheet.................................................................20 Statement of Changes in Equity................................................21 Cash Flow Statement...........................................................22 Notes to Financial Statements.................................................23 Directors' Declaration........................................................61 Independent Audit Report to the Members of Murchison United NL................62 ASX Additional Information....................................................64 MURCHISON UNITED NL (ABN 59 009 087 852) CORPORATE INFORMATION ABN: 59 009 087 852 This annual report covers Murchison United NL as an individual entity. TheCompany's functional and presentation currency is AUD ($). A description of the Company's operations and of its principal activities isincluded in the review of operations and activities in the directors' report onpages 4 to15. The directors' report is not part of the financial report. Directors Share Register G R Featherby Computershare Investor Services Pty LtdM D Reilly Level 2, 45 St Georges TerraceD Hutchins (Resigned 29 November 2005) PerthC D Grannell Western Australia 6000 Tel: 08 - 9323 2000 Company Secretary J Schiavi Registered Office Auditors Ground Floor Ernst & Young1121 Hay Street Mounts Bay RoadWest Perth PerthWestern Australia Western Australia6005 6000Tel: 08 - 9322 4071 Solicitors Nominated Advisor and Nominated Broker Freehills Evolution Beeson Gregory Limited250 St Georges Terrace The RegistryPerth Royal Mint CourtWestern Australia London EC3N 4LB6000U.K. Bankers Stock Exchanges National Australia Bank Ltd Australian Stock Exchange Ltd - MURLevel 10 Exchange Plaza London Stock Exchange AIM - MUU2 The EsplanadePerthWestern Australia6000 MURCHISON UNITED NL (ABN 59 009 087 852) DIRECTORS' REPORT FOR THE YEAR ENDED 30 JUNE 2006 Your Directors submit their report for the year ended 30 June 2006. DIRECTORS The names and details of the Company's directors in office during the financialyear and until the date of this report are as follows. Directors were in officefor this entire period unless otherwise stated. Names, qualifications, experience and special responsibilities Glenn Robert Featherby, aged 49, B.Com., A.C.A. (Non-Executive Chairman) Mr. Featherby joined the Board on 2 August 2004. Mr Featherby has over 20 years'experience in corporate advisory work and has worked extensively in theresources sector. He worked with KPMG in Perth, Western Australia and Londonbefore establishing his own accounting practice in Perth in 1997. Mr Featherbywas also a non-executive director of Canadian & A.I.M. listed EuropeanGoldfields Limited, and was the finance director of Regal Petroleum Plc, havingsince resigned from both positions. Mark David Reilly, aged 36, B.Bus., A.C.A. (Managing Director) Mr. Reilly joined the Board on 2 August 2004. Mr Reilly has over 15 year'sexperience in advisory work with extensive experience in the mining, banking andfinance industries. He worked with Coopers & Lybrand in Perth beforeestablishing a practice with Glenn Featherby. David Hutchins, aged 46 (Non-Executive Director) Mr Hutchins joined the Board on 8 December 2000, and resigned on 29 November2005. Mr Hutchins has over 20 years Institutional Funds Management experience inthe international mining sector. Christopher David Grannell, aged 43, (Non-Executive Director) Mr Grannell joined the Board on 4 April 2005. Mr Grannell has significant Londoncapital markets experience focused in the natural resources sector. Mr Grannellwas an Executive Director and Chief Financial Officer of European GoldfieldsLimited, a company listed on the Toronto Stock Exchange and the AIM market ofthe London Stock Exchange. COMPANY SECRETARY Joe Schiavi, aged 47, B.Bus. ACA (Company Secretary) Mr Schiavi was appointed Company Secretary on 2 August 2004. Prior to holdingthis position he has held a number of senior accounting, administration andCompany Secretary positions. Mr Schiavi has been a Chartered Accountant for over20 years. MURCHISON UNITED NL (ABN 59 009 087 852) DIRECTORS' REPORT (Continued) FOR THE YEAR ENDED 30 JUNE 2006 DIRECTORS (Continued) Interests in the shares and options of the Company As at the date of this report, the interests of the Directors in the shares andoptions of the Company were: Number of Ordinary Shares Number of Options over Ordinary Shares G.R. Featherby 3,333,333 2,000,000M.D. Reilly 3,333,333 3,500,000C.D. Grannell - 2,000,000D. Hutchins 500,000 - DIVIDENDS No dividend has been paid since the end of the previous financial year. TheDirectors recommend that no dividend be paid in respect of the current financialyear. OPERATING AND FINANCIAL REVIEW Principal Activities The principal activity of the Company during the course of the financial yearwas the exploration for minerals. Company Overview During the year and up to the date of this report, the Company continues toinvestigate resource opportunities. Currently these are focused on the Company'smining interests in the Cloncurry area in Queensland, Australia, the Republic ofGuinea and the Islamic Republic of Mauritania. The Directors of the Company are continuing to investigate resourceopportunities in Australia and internationally to assess their appropriatenessfor the Company. Subsequent to year end, the Directors announced the intention to raise$1,500,000 for working capital purposes by the issue of 25,000,000 ordinaryshares at 6 cents each from sophisticated clients of Hartley Ltd. Operating Results for the year The loss after income tax for the financial year was $2,000,673 (2005:$1,763,049). Shareholder Returns Shareholder returns are via capital growth of the listed share price. TheCompany's Australian closing share price as at 30 June 2006 was 7.7 centscompared to 6.3 cents as at the close of business on 30 June 2005. The shareprice at the date of this report is 5.4 cents. MURCHISON UNITED NL (ABN 59 009 087 852) DIRECTORS' REPORT (Continued) FOR THE YEAR ENDED 30 JUNE 2006 Shares Issued No shares were issued during the financial year. Earnings per share Cents Basic earnings/(loss) per share (.007) Diluted earnings/(loss) per share (.007) Employees Murchison United NL employed 5 employees as at 30 June 2006 (2005: 4 employees). Risk management The Company takes a proactive approach to risk management. The Board isresponsible for ensuring that risks, and also opportunities, are identified on atimely basis and that the Company's objectives and activities are aligned withthe risks and opportunities identified by the Board. The Company believes thatit is crucial for all Board members to be part of this process, and as such theBoard has not established a separate risk management committee. SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS Significant changes in the state of affairs of the Company during the financialyear were as follows: • The Company has successfully negotiated the acquisition of exploration permits in the Republic of Guinea and the Islamic Republic of Mauritania. SIGNIFICANT EVENTS AFTER THE BALANCE DATE There has not arisen in the interval between the end of the financial year andthe date of this report any item, transaction or event of a material and unusualnature likely, in the opinion of the Directors, to affect significantly theoperations of the Company, the results of those operations, or the state ofaffairs of the Company in subsequent financial years except that the Directorshave signed an in-principle agreement with Hartleys Limited for a placement of25,000,000 ordinary shares at an issue price of A$0.06 to sophisticated clientsof Hartleys Limited to raise $1,500,000 for working capital purposes. TheDirectors are confident that this placement will be finalised soon after thesigning of these financial statements. LIKELY DEVELOPMENTS AND EXPECTED RESULTS Further information about likely developments in the operations of the Companyand the expected results of those operations in future financial years has notbeen included in this report because disclosure of that information would belikely to result in unreasonable prejudice to the Company. ENVIRONMENTAL REGULATION AND PERFORMANCE The Company has an environmental security deposit of $7,950 (2005: $7,950) inrelation to the Millennium mining leases. There have been no calls on thisdeposit up to the date of this report. The Board believes that the Company hasadequate systems in place for the management of its environmental requirementsand is not aware of any breach of environmental requirements as they apply tothe Company. MURCHISON UNITED NL (ABN 59 009 087 852) DIRECTORS' REPORT (Continued) FOR THE YEAR ENDED 30 JUNE 2006 SHARE OPTIONS Unissued Shares As at the date of this report, there were 12,350,000 unissued ordinary sharesunder options (12,350,000 at the reporting date). Refer to note 15 of thefinancial statements for further details of the options outstanding. Option holders do not have any right, by virtue of the option, to participate inany share issue of the company or any related body corporate or in the interestissue of any other registered scheme. Shares issued as a result of the exercise of options During the year and up to the date of this report, no options were exercised. INDEMNIFICATION AND INSURANCE OF DIRECTORS AND OFFICERS The Company has, in accordance with the Constitution, entered into insurancecontracts, which indemnify Directors and Officers of the Company againstliabilities. In accordance with normal commercial practices, under the terms ofthe insurance contracts, the details of the nature and extent of the liabilitiesinsured against and the amount of premiums paid are confidential. REMUNERATION REPORT This report outlines the remuneration arrangements in place for Directors andExecutives of the Company. Remuneration philosophy The performance of the Company depends upon the quality of its Directors andExecutives. To prosper, the Company must attract, motivate and retain highlyskilled Directors and Executives. To this end, the Company provides competitiverewards to attract high calibre executives. Remuneration committee The Directors of the Company considered that due to the level of currentoperations a Remuneration Committee is currently not required. The Board isresponsible for remuneration policy to ensure that remuneration packagesproperly reflect each person's duties and responsibilities, and thatremuneration is competitive in attracting, retaining and motivating people ofthe highest quality. During the year a Remuneration Committee did not exist. Theexistence and composition of Directors' Committees may be reconsidered in thefuture. MURCHISON UNITED NL (ABN 59 009 087 852) DIRECTORS' REPORT (Continued) FOR THE YEAR ENDED 30 JUNE 2006 REMUNERATION REPORT (Continued) Remuneration structure In accordance with best practice corporate governance, the structure ofNon-Executive Director and Executive remuneration is separate and distinct. Non-executive director remuneration Objective The Board seeks to set aggregate remuneration at a level which provides theCompany with the ability to attract and retain Directors of the highest calibre,whilst incurring a cost which is acceptable to Shareholders. Structure The Constitution specifies that the aggregate remuneration of Non-ExecutiveDirectors shall be determined from time to time by a general meeting. An amountnot exceeding the amount determined is then divided between Directors as agreed.The latest determination was at the Annual General meeting held on 30 November1998 when shareholders agreed an aggregate remuneration of $300,000 per year. The amount of aggregate remuneration sought to be approved by Shareholders andthe manner in which it is apportioned amongst Directors is reviewed annually.The Board considers advice from external consultants as well as the fees paid tonon-executive directors of comparable companies when undertaking the annualreview process. Each Director receives a fee for being a Director of the Company. Non-Executive Directors are encouraged by the Board to hold shares in theCompany purchased by the Director. It is considered good governance forDirectors to have a stake in the Company on whose board he or she sits. TheNon-Executive Directors of the Company can participate in the Employee ShareOption Plan. The remuneration of Non-Executive Directors for the year ended 30 June 2006 isdetailed in Table 1 on page 11 of this report. MURCHISON UNITED NL (ABN 59 009 087 852) DIRECTORS' REPORT (Continued) FOR THE YEAR ENDED 30 JUNE 2006 REMUNERATION REPORT (Continued) Senior Manager and Executive Director remuneration Objective The Company aims to reward Executives with a level and mix of remunerationcommensurate with their position and responsibilities within the Company and soas to: • Align the interests of Executives with those of Shareholders; and • Ensure total remuneration is competitive by market standards. Structure In determining the level and make-up of the Executive remuneration, the Boardobtained advice as to remuneration paid to executive directors of comparablecompanies. It is the Board's policy that employment contracts are only entered into withthe Managing Director and with no other Executives. Details of this contract areprovided on page 10. Remuneration consists of the following key elements: • Fixed Remuneration; and • Variable Remuneration - Long Term Incentives (LTI). Fixed Remuneration Objective The level of fixed remuneration is set so as to provide a base level ofremuneration, which is both appropriate to the position and is competitive inthe market. Fixed remuneration is reviewed annually by the Board and the process consists ofa review of business and individual performance, relevant comparativeremuneration in the market and internal and, where appropriate, external adviceon policies and practices. The Board has access to external advice independentof management. Structure Senior Managers are given the opportunity to receive their fixed (primary)remuneration in a variety of forms including cash and fringe benefits. It isintended that the manner of payment chosen will be optimal for the recipientwithout creating undue costs for the Company. MURCHISON UNITED NL (ABN 59 009 087 852) DIRECTORS' REPORT (Continued) FOR THE YEAR ENDED 30 JUNE 2006 REMUNERATION REPORT (Continued) Variable Remuneration - Long Term Incentive (LTI) Objective The objective of the LTI plan is to reward Senior Managers in a manner, whichaligns this element of remuneration with the creation of Shareholder wealth. As such LTI grants are only made to Executives who are able to influence thegeneration of Shareholder wealth and thus have a direct impact on the Company'sperformance against the relevant long-term performance. Structure LTI grants to Executives are delivered in the form of options. There are noperformance conditions attached to the options except that options do not vestuntil six months continuous employment is completed from the time of grantingthe options. Options granted to executives during the year are detailed on page12. Employment contracts The Managing Director, Mr Mark D Reilly, is employed under contract. The currentemployment contract commenced on 1 January 2005. Under the terms of the presentcontract: • Mr Reilly may resign from his position and thus terminate this contractby giving 6 months written notice. On resignation by notice, any LTI optionsgranted will have vested, or will vest during the notice period. • The Company may terminate this employment agreement by providing 6months written notice or provide payment in lieu of the notice period (based onthe fixed component of Mr Reilly's remuneration). On termination on notice bythe Company, any LTI options granted will have vested, or will vest during thenotice period. • The Company may terminate the contract at any time without notice ifserious misconduct has occurred. Where termination with cause occurs, theManaging Director is only entitled to that portion of remuneration, which isfixed, and only up to the date of termination. On termination with cause anyunvested options will immediately be forfeited. MURCHISON UNITED NL (ABN 59 009 087 852) DIRECTORS' REPORT (Continued) FOR THE YEAR ENDED 30 JUNE 2006 DIRECTORS' AND OTHER OFFICERS' EMOLUMENTS Table 1: Remuneration of Directors and Executives for the year ended 30 June2006. Short Term Benefits Post employment Share-based Total % Salary & Fees Superannuation Retirement Payment Performance benefits Options related Directors $ $ $ $ $G. R. Featherby 2006 50,000 4,500 - - 54,500 - 2005 25,000 2,250 - 119,000 146,250 -M. D. Reilly 2006 150,000 13,500 - - 163,500 - 2005 75,000 6,750 - 208,250 290,000 -D. Hutchins 2006 25,000 - - - 25,000 - 2005 20,000 - - - 20,000 -C. D. Grannell 2006 40,000 - - 142,800 182,800 - 2005 10,000 - - - 10,000 -ExecutivesJ. Schiavi 2006 86,500 22,500 - - 109,000 - 2005 50,000 4,500 - 119,000 173,500 -B. Gustafsson 2006 84,890 - - - 84,890 - 2005 - - - - - - Total 2006 436,390 40,500 - 142,800 619,690 -Total 2005 180,000 13,500 - 446,250 639,750 - There were no Executive Officers other than those listed above during the yearended 30 June 2006. MURCHISON UNITED NL (ABN 59 009 087 852) DIRECTORS' REPORT (Continued) FOR THE YEAR ENDED 30 JUNE 2006 DIRECTORS' AND OTHER OFFICERS' EMOLUMENTS (Continued) Table 2: Options granted as part of remuneration During the financial year, options were granted as equity compensation benefitsunder a long-term incentive plan to certain Directors and key managementpersonnel. The options were issued free of charge. Each option entitles theholder to subscribe to one fully paid ordinary share in the Company at theexercise price struck at the grant date. The options vest after six monthscontinual employment from the grant date. The contractual life of each option isten years. Grant Grant Fair Value of Value of Value of Total value % remuneration consisting of date number Value per options options options of Options options for the year option at granted exercised lapsed granted, grant during the during during exercised and date year year year lapsed during yearYearended 30 June2006 ($) ($) ($)C D 29.11.05 2,000,000 $0.0714 142,800 - - 142,800 78.1%Grannell Grant Grant Fair Value of Value of Value of Total value % remuneration consisting of date number Value per options options options of Options options for the year option at granted exercised lapsed granted, grant during the during during exercised and date year year year lapsed during yearYear ended 30 June2005 ($) ($) ($)G R 19.05.05 2,000,000 $0.0595 119,000 - - 119,000 81.3%FeatherbyM D Reilly 19.05.05 3,500,000 $0.0595 208,250 - - 208,250 71.8%J Schiavi 19.05.05 2,000,000 $0.0595 119,000 - - 119,000 81.3% For details on the valuation of the options, including models and assumptionsused, please refer to Note 20. There were no alterations to the terms andconditions of options granted as remuneration since their grant date. MURCHISON UNITED NL (ABN 59 009 087 852) DIRECTORS' REPORT (Continued) FOR THE YEAR ENDED 30 JUNE 2006 DIRECTORS' MEETINGS The number of Directors' meetings and number of meetings attended by each of theDirectors of the Company during the financial year are: Directors' Meetings A BG R Featherby 3 3M D Reilly 3 3D Hutchins 1 1C D Grannell 3 3 A - Number of meetings attended B - Reflects the number of meetings held during the time the Director heldoffice during the year. All Directors were eligible to attend all meetings held. COMMITTEE MEETINGS The Directors of the Company consider that due to the level of currentoperations separate committees for Audit, Remunerations and Nomination are notnecessary. MURCHISON UNITED NL (ABN 59 009 087 852) DIRECTORS' REPORT (Continued) FOR THE YEAR ENDED 30 JUNE 2006 AUDITOR'S INDEPENDENCE The Directors received the following declaration from the auditor of MurchisonUnited NL. Auditor's Independence Declaration to the Directors of Murchison United NL In relation to our audit of the financial report of Murchison United NL for thefinancial year ended 30 June 2006, to the best of my knowledge and belief, therehave been no contraventions of the auditor independence requirements of theCorporations Act 2001 or any applicable code of professional conduct. Ernst & Young J P DowlingPartnerPerth29 September 2006 JPD;HG;MURCHISON;021 Liability limited by the Accountants Scheme, approved under the Professional Standards Act 1994 (NSW). MURCHISON UNITED NL (ABN 59 009 087 852) DIRECTORS' REPORT (Continued) FOR THE YEAR ENDED 30 JUNE 2006 NON-AUDIT SERVICES Ernst & Young received or are due to receive no amounts for the provision ofnon-audit services. Signed in accordance with a resolution of the Directors. ....................................... M D Reilly MANAGING DIRECTOR Perth, 29 September 2006 MURCHISON UNITED NL (ABN 59 009 087 852) CORPORATE GOVERNANCE STATEMENT The Board of Directors of Murchison United NL is responsible for the corporategovernance of the Company. The Board monitors the business affairs of MurchisonUnited NL on behalf of the Shareholders by whom they are elected and to whomthey are accountable. Murchison United NL's Corporate Governance Statement is structured withreference to the Corporate Governance Council's principles and recommendations,which are as follows: Principle 1. Lay solid foundations for management and oversight Principle 2. Structure the board to add value Principle 3. Promote ethical and responsible decision making Principle 4. Safeguard integrity in financial reporting Principle 5. Make timely and balanced disclosures Principle 6. Respect the rights of shareholders Principle 7. Recognise and manage risk Principle 8. Encourage enhanced performance Principle 9. Remunerate fairly and responsibly Principle 10. Recognise the legitimate interests of stakeholders Murchison United NL's corporate governance practices were in place throughoutthe year ended 30 June 2006 and were fully compliant with the Council's bestpractice recommendations other than as follows: • an Audit, Nomination and a Remuneration Committee have not beenestablished as these functions are carried out by the full board; and • the majority of the Board are not independent. Structure of the Board The skills, experience and expertise relevant to the position of director heldby each director in office at the date of the annual report is included in theDirectors' Report. Directors of Murchison United NL are considered to beindependent when they are independent of management and free from any businessor other relationship that could materially interfere with - or could reasonablybe perceived to materially interfere with - the exercise of their unfettered andindependent judgement. In the context of director independence, 'materiality' is considered from boththe Company and individual director perspective. The determination ofmateriality requires consideration of both quantitative and qualitativeelements. An item is presumed to be quantitatively immaterial if it is equal toor less than 5% of the appropriate base amount. It is presumed to be material(unless there is qualitative evidence to the contrary) if it is equal to orgreater than 10% of the appropriate base amount. Qualitative factors consideredinclude whether a relationship is strategically important, the competitivelandscape, the nature of the relationship and the contractual or otherarrangements governing it and other factors that point to the actual ability ofthe director in question to shape the direction of the company's loyalty. In accordance with the definition of independence above, and the materialitythresholds set, the following Director of Murchison United NL is considered tobe independent: Name Position C D Grannell Non-Executive Director There are procedures in place, agreed by the Board, to enable Directors infurtherance of their duties to seek independent professional advice at theCompany's expense. MURCHISON UNITED NL (ABN 59 009 087 852) CORPORATE GOVERNANCE STATEMENT (Continued) Structure of the Board (Continued) The term in office held by each Director in office at the date of this report isas follows: Name Term in office G R Featherby 1 Year M D Reilly 3 Years C D Grannell 1 Year Performance The performance of the Board and key Executives is reviewed regularly againstboth quantitative and qualitative indicators. Each Board member's and keyExecutive's performance is assessed against specific and measurable qualitativeand quantitative performance criteria. The performance criteria against whichDirectors and Executives are assessed is aligned with the financial andnon-financial objectives of Murchison United NL. Directors whose performance isconsistently unsatisfactory may be asked to retire. There are currently no Audit, Nomination or Remunerations Committees as allissues relating to corporate governance are dealt with by the full Board, due tothe size of the Company, and ensuring arrangements are in place to adequatelymanage those risks. Audit Committee All matters, which might properly be dealt with by an audit committee, are theresponsibility of the Board. Matters that are considered include: • Ensuring that an effective internal control framework exists withinthe Company; • Review the annual report, financial statements and other informationdistributed externally; • Reviewing audit reports and letters to the Board from the externalauditors; • Liasing with external auditors and ensuring the annual audit and halfyear review are conducted in an effective manner; • Nomination of the external auditor and reviewing the adequacy of thescope and quality of the annual audit and half year review; and • Monitoring compliance with the Corporations Act 2001, ASX ListingRules, and other matters outstanding with other regulatory and financialauthorities. MURCHISON UNITED NL (ABN 59 009 087 852) CORPORATE GOVERNANCE STATEMENT (Continued) Remuneration It is the Company's objective to provide maximum stakeholder benefit from theretention of a high quality Board and Executive team by remunerating Directorsand key Executives fairly and appropriately with reference to relevantemployment market conditions. To assist in achieving this objective, the Boardlinks the nature and amount of Executive Directors' and Officers' emoluments tothe Company's financial and operational performance. The expected outcomes ofthe remuneration structures are: • retention and motivation of key Executives; • attraction of high quality management to the Company; and • performance incentives that allow Executives to share the success of Murchison United NL. For a full discussion of the Company's remuneration philosophy and framework andthe remuneration received by the Directors and Executives in the current periodplease refer to the remuneration report, which is contained within theDirectors' Report. There is no scheme to provide retirement benefits, other than statutorysuperannuation, to Non-executive Directors. The Board is responsible for determining and reviewing compensationarrangements. The Board has not established a Remuneration committee, at thispoint in time. MURCHISON UNITED NL (ABN 59 009 087 852) SCHEDULE OF INTERESTS IN MINING TENEMENTS CURRENT AT 30 JUNE 2006 STATE TENEMENT NAME/LOCATION TENEMENT INTEREST COMMENTS NUMBER Queensland Rita Margaret ML 2512 100% This Time Maybe l ML 2761 100% Federal ML 2762 100% Millennium #1 ML 7506 100% Millennium #2 ML 7507 100% Millennium #3 ML 7508 100% Millennium #4 ML 7509 100% NOTE: ML = Mining Lease COUNTRY TENEMENT NAME/LOCATION TENEMENT INTEREST COMMENTS NUMBER Republic of Beyla (Sesse) XP 133 100% Guinea Beyla (Sesse) XP 134 100% Kankan (Bohoduo) XP 129 100% Kankan (Bohoduo) XP 135 100% Kerouane (Bohoduo) XP 136 100% Kerouane (Firawa) XP 137 100% Kissidougou (Firawa) XP 138 100% Kissidougou (Firawa) XP 130 100% COUNTRY TENEMENT NAME/LOCATION TENEMENT INTEREST COMMENTS NUMBER Republic of D' Adem Essder XP 281 100% Mauritania D' Adem Essder XP 282 100% NOTE: XP = Exploration Permits MURCHISON UNITED NL (ABN 59 009 087 852) INCOME STATEMENT FOR THE YEAR ENDED 30 JUNE 2006 2006 2005 Notes $ $ Continuing operationsRevenue 4 64,143 27,588Administration Expenses 5 (1,500,344) (655,664)Finance Costs - -Project evaluation expenses (505,785) (106,824)Settlement of Renison Bell Ltd Creditors 14 (58,687) (1,028,149)Loss before income tax (2,000,673) (1,763,049)Income tax expense - - Loss after tax from continuing operations (2,000,673) (1,763,049) Net loss attributable to members of the Company (2,000,673) (1,763,049) Earnings/(loss) per share (cents per share)- basic loss for the year attributable to ordinaryequity holders of the Company (0.007) (0.006)- diluted loss for the year attributable to ordinaryequity holders of the Company (0.007) (0.006) MURCHISON UNITED NL (ABN 59 009 087 852) BALANCE SHEET AS AT 30 JUNE 2006 Notes As at As at 30 June 30 June 2006 2005 $ $ASSETSCurrent AssetsCash and cash equivalents 8 395,672 1,988,141Trade and other receivables 9 7,950 7,950Prepayments 18,592 7,466Total Current Assets 422,214 2,003,557 Non-current assetsAvailable-for-sale financial assets 10 23,480 23,480Exploration and evaluation expenditure 11 325,334 -Property, plant and equipment 12 28,638 2,650Total Non-Current Assets 377,452 26,130 TOTAL ASSETS 799,666 2,029,687 LIABILITIESCurrent LiabilitiesTrade and other payables 13 78,860 35,783Provisions 14 339,612 277,726Total Current Liabilities 418,472 313,509 TOTAL LIABILITIES 418,472 313,509 NET ASSETS 381,194 1,716,178 EQUITYIssued capital 15 41,380,905 41,380,905Reserves 16 767,550 101,861Accumulated losses 17 (41,767,261) (39,766,588) TOTAL EQUITY 381,194 1,716,178 MURCHISON UNITED NL (ABN 59 009 087 852) STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2006 Attributable to equity holders of the Company Total equity Issued Accumulated Employee Total capital losses equity benefits reserve $ $ $ $ At 1 July 2004 37,554,895 (38,003,539) - (448,644) Loss for the period - (1,763,049) - (1,763,049) Total income/(expense) for the period - (1,763,049) - (1,763,049) Issue of ordinary shares 3,977,150 - - 3,977,150 Transaction costs (151,140) (151,140) Cost of share-based payment - - 101,861 101,861 At 30 June 2005 41,380,905 (39,766,588) 101,861 1,716,178 Issued Accumulated Employee capital losses equity benefits reserve Total $ $ $ $ At 1 July 2005 41,380,905 (39,766,588) 101,861 1,716,178 Loss for the period - (2,000,673) (2,000,673) Total income/(expense) for the period - (2,000,673) - (2,000,673) Cost of share-based payment - - 665,689 665,689 At 30 June 2006 41,380,905 (41,767,261) 767,550 381,194 MURCHISON UNITED NL (ABN 59 009 087 852) Cash Flow Statement For The Year Ended 30 June 2006 Notes 2006 2005 $ $ Cash flows from operating activities Payments to suppliers and employees (1,296,112) (638,136)Interest received 63,917 27,588 Net cash flows used in operating activities 8(b) (1,232,195) (610,548) Cash flows from investing activities Dividend received 226 -Proceeds on disposal of available-for-sale financial - 1,804assetPurchase of equipment (35,166) -Payment for exploration and evaluation costs (325,334) - Net cash flows from investing activities (360,274) 1,804 Cash flows from financing activities Proceeds from issue of shares - 2,600,000Transaction costs relating to issue of shares - (151,140)Net cash from financing activities - 2,448,860 Net (decrease)/increase in cash and cash equivalents (1,592,469) 1,840,116heldCash and cash equivalents at the beginning of thefinancial year 1,988,141 148,025 Cash and cash equivalents at the end of financial year 8(a) 395,672 1,988,141 MURCHISON UNITED NL (ABN 59 009 087 852) Notes to the Financial Statements For The Year Ended 30 June 2006 To view the full release, please paste the link below into your web browser; http://www.murchisonunited.com.au/pdf_files/MUR_2006_Accounts.pdf This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Bos Glb Hldgs