Final Results

RNS Number : 8319R

Allied Gold Limited

31 August 2010

 

FOR IMMEDIATE RELEASE 29 August 2010

 

allied gold limited

("the Company")

 

Media Release

 

Annual Financial Report For The Year Ended 30 June 2010

 

 

 

Allied Gold today lodged its full year financial report for the year ended 30 June 2010 with the ASX. Below are extracts from the Financial Report:

 

DIRECTORS' REPORT

 

The Directors present their report, together with the Financial Statements of Allied Gold Limited ("the Company") and its subsidiaries ("Allied Gold" or "the Group") for the year ended 30 June 2010 ("the financial period").

 

DIRECTORS

 

The Directors of the Company in office at any time during or since the end of the financial period are named below. Directors have been in office since the start of the financial period to the date of this report unless otherwise stated.

 

Name and qualifications	Experience and special responsibilities
Mr Mark V Caruso Executive Chairman   Appointed 26 May, 2003	Mr Caruso is a Director of Simto Australia Pty Ltd which is involved in mining, earthmoving and civil engineering construction earthworks. He is also a director of Mineral Commodities Limited (since September 2000).   Other current directorships Non-executive director of Mineral Commodities Limited.   Former directorships in last 3 years Non-executive director of CI Resources Limited from 2003 to 2008.   Special responsibilities Executive Chairman of the Board.
Mr T Sean Harvey Non Executive Director   M.A. Econ, MBA, LLB   Appointed 11 March 2010	Mr Harvey has over 11 years investment banking and merchant banking experience, primarily focused on the mining sector. For the last 10 years, he has held senior executive and board positions with various mining companies.   Other current directorships Non-Executive Chairman of Andina Minerals Inc. and Victoria Gold Corporation. Non-Executive Director of Perseus Mining Limited and Polaris Geothermal Inc.   Former directorships in last 3 years Non-Executive Director of Moto Goldmines Limited and Nord Resources Corp.   Special responsibilities Chairman of the Audit, Risk and Compliance Committee.
Mr Monty House Non-executive Director   Appointed 4 March 2009	Mr House is a member of the Australian Institute of Company Directors and was previously a Member of Parliament in Western Australia. Mr House was elected as Deputy Leader of the National Party in 1988.   Other current directorships Chairman of Landcorp Western Australia and director of Latent Petroleum.   Former directorships in last 3 years Chairman of Landgate Western Australia   Special responsibilities Member of Audit, Risk and Compliance Committee and Chairman of Remuneration and Nomination Committee.
Mr Anthony Lowrie Non-Executive Director   Appointed 9 March, 2007	Mr Lowrie has considerable corporate and finance experience. He was Chairman of ABN AMRO Asia Securities Limited having originally been a partner of Hoare Govett Ltd, which he joined in 1973.   Other current directorships   Non-executive director of Kenmare Resources PLC. Non-executive director of Edinburgh Dragon Fund.   Former directorships in last 3 years ABN AMRO Bank Limited Non-executive director of JD Wetherspoon PLC. Non-executive director of Quadrise Fuels International. Non-executive director of The Thai Euro Fund.   Special responsibilities Member of Remuneration and Nomination Committee.
Mr Gregory H Steemson Non-Executive Director   Appointed 14 June, 2005	Mr Steemson is a qualified geologist and geophysicist with an extensive background in exploration and the development and management of mining projects.   Other current directorships Nil   Former directorships in last 3 years Executive director of Sandfire Resources NL from 2003 to 2008 and director and Chief Executive Officer of Mineral Commodities Limited from 7 May 2009 until 31 March 2010.   Special responsibilities Member of the Remuneration and Nomination Committee and the Audit, Risk and Compliance Committee.
Mr Frank Terranova Executive Director   Appointed 10 December 2008	Mr Terranova is a chartered accountant with extensive experience in corporate finance and financial risk management predominantly within the mining and manufacturing industries. He has held many senior finance positions for various ASX listed corporations.   Other current directorships Nil.   Former directorships in last 3 years Nil.   Special responsibilities Chief Financial Officer.

 

DIRECTORS' MEETINGS

 

The number of directors' meetings and number of meetings attended by each of the Directors of the Company during the financial period under review was:

	Board of Directors		Audit Committee		Remuneration and Nomination Committee
	Meetings held*	Meetings attended	Meetings held*	Meetings attended	Meetings held*	Meetings attended
Mark Caruso	10	10	-	-	-	-
Greg Steemson	10	8	6	6	7	5
Anthony Lowrie	10	10	-	-	7	7
Frank Terranova	10	10	-	-	-	-
Monty House	10	10	6	6	7	7
Sean Harvey	2	2	1	1	-	-

 

* Reflects the number of meetings held during the time the Director held office during the financial period.

 

COMPANY SECRETARY

 

Mr Peter Torre was the Company Secretary of Allied Gold Limited from the beginning of the financial period until the date of this report.

 

Mr Torre is the principal of the corporate advisory firm Torre Corporate which provides corporate secretarial services to a range of listed companies. Prior to establishing Torre Corporate, Mr Torre was a partner of an internationally affiliated firm of Chartered Accountants working within its Corporate services Division for over 9 years where he also held the position of Chairman of the National Corporate Services Committee. Mr Torre holds a Bachelor of Business, is a Chartered Accountant, a Chartered Secretary and is a member of the Institute of Company Directors.

 

PRINCIPAL ACTIVITIES

 

Allied Gold Limited's gold production and exploration development portfolio is centred on the Pacific Rim of Fire, in particular the Simberi Island in the Tabar Islands of Papua New Guinea. During the year ended 30 June 2010, 64,327 ounces of gold were produced at Simberi and studies are nearing completion for an expansion of the oxide plant to 5 Mtpa that would increase gold production to approximately 130,000 ounces of gold per annum.

 

In December 2009, Allied Gold acquired Australian Solomons Gold Limited (ASG), a company listed on the Toronto Stock Exchange ("TSX") and its principal asset the Gold Ridge mine located on the island of Guadalcanal in the Solomon Islands. Between 1998 and 2000, whilst in operation, the Gold Ridge mine produced in excess of 200,000 ounces of gold. Allied Gold is investing $150 million at Gold Ridge to refurbish the plant with first gold pour anticipated in the first calendar quarter of 2011.

 

RESULTS

 

The group operating profit after tax was $10,228,815 (2009:restated loss $7,071,651).

 

DIVIDENDS PAID OR RECOMMENDED

 

No dividends were paid or declared during or in respect of the 2010 financial year (2009: nil).

 

REVIEW OF OPERATIONS

 

Simberi Project

 

Oxide operations

 

·; Key operating statistics for the mining and processing activities for the period from 1 July 2009 to 30 June 2010 are summarised in the table below:

 

Key operating statistic	Unit of measure	Volume
Waste mined	tonnes	634,296
Ore mined	tonnes	1,981,500
Total mined	tonnes	2,615,796
Ore processed	tonnes	1,949,650
Grade	g/t gold	1.18
Recovery	%	87.9
Gold produced	ounces	64,327
Gold sold	ounces	63,980
Average realised gold price $ / oz	A$/oz US$/oz	1,136 999
Operating cash cost $ / oz	A$/oz US$/oz	823 729

 

·; Operations at the Simberi Gold Oxide Project were impacted by continued unseasonal rainfall during the September quarter and a total of thirteen days lost production in December 2009 and January 2010 due to an illegal cease work order and cultural gorgor. The Simberi operation suffered a structural mechanical failure of its Scrubber Trommel processing equipment in the March 2010 quarter which resulted in eight days of lost production and lower gold recovery as CIL tank linings were recoated as part of a scheduled maintenance programme. Despite these operational constraints, the achievement of nameplate capacity for production plant throughput at around 2 Mtpa has provided further confidence that the 3 Mtpa oxide expansion plan will be delivered.

 

·; The Simberi process plant is now exceeding name plate capacity and gold recoveries are exceeding design criteria. During the first quarter, abnormally high rainfall limited gold production due to the inability to sequentially access the Sorowar mining area in accordance with the budgeted mine plan which resulted in the delivery of an overall lower run of mine head grade than anticipated resulting in lower gold production during the year despite the higher processing volumes.

 

·; Simberi is now an owner-operator mine, with the termination effective from 1 April 2010 of the Dry Hire contract between Simberi and civil contracting group Mine Site Construction Services (a related party).

 

·; The company has mobilised an additional 5 articulated dump trucks, 1 excavator and 2 bulldozers to increase mining rates in advance of the proposed oxide expansion initiatives and to maximise production during available working periods. The full benefits of production and incremental cost reductions in mining rates will be seen in the September 2010 quarter.

 

Expansion and Debottlenecking Studies

 

·; GR Engineering Services completed an independent assessment relating to debottlenecking and optimisation of the existing process plant as well as a study to increase the plant capacity from its current nameplate capacity of 2 Mtpa to 3 Mtpa and possibly up to 5 Mtpa which should result in gold production being increased to approximately 100,000 ounces per annum and possibly up to 130,000 ounces per annum respectively.

 

·; This assessment was further developed into a PFS and has adopted a SAG mill in series with the existing ball mill as the processing route and includes two additional 2,500m3 agitated leach tanks and a tailings thickener.

 

·; Plant debottlenecking activities progressed throughout the year with the following activities being undertaken:

 

- Scats crusher and conveying system installed and operational.

- A second elution column now operational, larger Intertank screens installed to all CIL tanks.

- Rope conveyor and ore delivery conveyors were upgraded to 600tph, conveyor rain covers installed.

- SAG mill for the oxide expansion has been purchased.

- Detailed civil design for leach tanks and lime slaker completed. Refurbishment of used lime slaking plant completed, design completed and tank and structural steel being procured.

- Tenders for thickener received.

- The underground high voltage electrical cables have been removed and earthworks for the CIL tank foundations are about to commence.

 

Remaining debottlenecking and optimisation works include the installation of larger agitator gear boxes and new wet ends for tanks 1, 2 and 3 which have been procured.

 

Simberi Sulphide Prefeasibility Study (PFS)

 

·; The Simberi Sulphide Prefeasibility Study is nearing completion and is due for release in the September quarter.

 

·; The identification of large oxide mineral resource overlying the sulphides has necessitated an additional review of the existing CIL oxide treatment plant capacity which is currently being expanded to 3Mtpa to look at a possible expansion up to 5Mtpa.

 

·; Metallurgical test work has been substantially completed. As previously reported, process recoveries for sulphide ores via roasting on site of a concentrate is approximately 82%.

 

·; The Resources estimates have been completed and the Reserve estimates and subsequent mining strategies and capital and operating cost are being generated, again in line with the possible delivery of up to 5Mtpa of oxide ore.

 

·; Environmental studies including tailings and waste material disposal have been completed but are being reviewed further in line with higher oxide processing rate.

 

Exploration

 

·; The on-going drilling campaign during the year was designed to support the Sulphide and Oxide Expansion Studies based around the Pigiput and Pigibo deposits.

 

Gold Ridge Project

 

·; A$150 million refurbishment and redevelopment project was approved by the Board of Allied Gold.

 

·; Official ceremonies to mark the commencement of the redevelopment project were held in March 2010. Project works have commenced and are on schedule for first gold pour in March 2011.

 

·; An EPC lump sum contract for A$64.3M was awarded to GR Engineering Services (GRES) for refurbishment and expansion of the process plant and ancillaries. Engineering design and drafting is well advanced, and procurement of long lead items has been completed.

 

·; GRES have mobilised to site and completed the removal of old equipment and key components (such as ore crushing and grinding) have been stripped for repair, refurbishment or exchange. Steel for three new additional leach tanks has arrived and erection of the tanks has commenced.

 

·; Construction equipment including cranes and mining fleet consisting of haul trucks, excavators, dozers and other road maintenance and heavy vehicle support arrived on site in May.

 

·; Contract for mine camp refurbishment and expansion and landowner village resettlement housing was awarded. Camp refurbishment and installation of additional accommodation units is continuing and will provide for approximately 200 camp beds.

 

·; The Administration building was completed in May and is now fully equipped and operational with computing and internet facilities and communications installed.

 

·; The mine warehouse building has been completed.

 

·; The General Manager of Gold Ridge Mining Limited (GRML) was appointed and commenced duties on site in June. A Resettlement Manager has also been appointed.

 

·; Pre-operational manning in selected positions has commenced with a strong focus on employment and training of people from the Gold Ridge area.

 

·; The landowner resettlement program is on track as part of plans to gradually move local villagers. Fabrication of 300 resettlement houses - at the rate of 30 a month - has commenced.

 

·; In February dewatering of the Tailing Storage Facility commenced. Pumping is on schedule and is due for completion by October which will allow tailings placement to commence when operations restart.

 

·; Mining activities and the first deliveries of ore to ROM Stockpile expected in the December 2011 quarter. Operator training and construction of related earthworks has commenced.

 

·; Tenders for power supply were issued, reviewed, and award is pending. The power station will be delivered as a buy-own-operate (BOO) by the contractor with 14 MW of installed capacity and base load requirement of 8.1 MW.

 

·; The Gold Ridge Geological Resource model was reviewed and a new Reserve estimate derived based on an assumed US$850/oz gold price increasing Gold Ridge's Probable Reserves inventory by 134,000 ounces - or approximately one year of production.

 

·; Allied mobilised a reverse circulation (RC) drill to site in June to carry out pre-mining grade control and sterilisation drilling, as well as some near mine exploration.

 

·; Additional 130 km2 of prospecting area under application.

 

Corporate

 

·; On 17 September 2009, Allied Gold announced its offer to acquire the shares of Australian Solomons Gold Limited ("ASG"). On 23 February 2010, Allied completed the compulsory acquisition of the ASG shares that it did not already own. As a consequence of this, Allied moved to 100% ownership of ASG. ASG was delisted from the Toronto Stock Exchange ("TSX") at the close on January 28, 2010 and has ceased being a reporting issuer.

 

·; On 12 November 2009, Allied Gold listed on the TSX as part of a successful capital raising completed during December 2009. A total of A$159M was raised from existing and new institutional shareholders with Allied Gold preserving its blue chip share register. The primary purpose of the funding was to redevelop the Gold Ridge mine in the Solomon Islands.

 

·; In December 2009, a controlled entity of Allied Gold Limited commenced legal action against Intermet Engineers (Pty) Ltd ("Intermet") and a director of Intermet in respect of breaches of a contract entered into between the controlled entity and Intermet whereby Intermet were contracted to design, procure and manage the construction of gold processing and related facilities for the Simberi Oxide Gold Project. Under the legal action, the controlled entity is claiming damages of not less than $40 million.

 

·; In July 2007, Allied Gold put in place 170,000 ounces of hedging as part of its Simberi project financing. The majority of the hedging had been utilised or repaid prior to December 31, 2009 at which time 37,512 ounces of hedging remained. On February 26, 2010 Allied Gold Limited extinguished the last 37,512 ounces of its gold hedging programme giving the Group full price participation in all future production from the Simberi gold mine in Papua New Guinea.

 

·; In March 2010, Allied negotiated Barrick (PNG)'s withdrawal from the joint venture agreement over Tatau and Big Tabar Islands and consequently reassumed management of exploration in the entire area of permit EL609. Allied made an immediate $2.5 million payment to Barrick (PNG) with a further $3 million to be paid in July 2010 as either cash or Allied shares. Barrick agreed to place its holding of Allied shares in escrow until 2012.

 

·; In June 2010, Allied secured a US$35 million debt facility with the International Finance Corporation. The facility is expected to be drawn down in the September 2010 quarter. The 5-year facility has no principal repayments before November 2011 and no gold hedging required. Funds drawn down under the facility are to be applied to the funding of the redevelopment of the Gold Ridge project.

 

 

SUBSEQUENT EVENTS

 

No matter or circumstance has arisen since 30 June 2010 that has significantly affected, or may significantly affect:

 

(a) the Group's operations in future financial years; or

(b) the results of those operations in future financial years; or

(c) the Group's state of affairs in future financial years.

 

 

FUTURE DEVELOPMENTS, PROSPECTS AND BUSINESS STRATEGIES

 

Simberi Project

 

The detail of the Simberi Sulphide Pre-feasibility Study and expansion options for the Simberi oxide circuit is due in September. The aim being to increase gold production from the oxide ores, access sulphides faster and deliver incremental expansion synergistic with the needs of sulphide development.

 

 

Gold Ridge Project 

 

Development of the 120,000 ounce per annum Gold Ridge mine is fully funded with Allied's cash at bank and the IFC loan. Pre-development continues with the first gold pour expected during the March 2011 quarter.

 

Construction activities are anticipated to accelerate in the September quarter with the installation of three additional leach tanks and the commencement of the thickener. The tailings detoxification tank will also be scheduled for completion in September as will the reestablishment of power lines and associated infrastructure. The refurbishment of the SAG mill will be approximately 50% completed by the September quarter.

 

Mining activities will also increase with operator training being undertaken and the completion of starter pit designs for Valehaichichi and Namachamata pits.

 

Exploration

 

Simberi near term exploration continues to focus on various sulphide mineralisation targets around the Botlu and Samat areas. The Inferred Sulphide resource under the Sorowar open pit will also be targeted.

 

Additional emphasis will also now be towards increasing the Oxide resources to underpin future mine life to support the oxide plant expansion initiatives.

 

At Tatau Island, mobilisation of crew and equipment is scheduled for early in the September quarter. Diamond drilling is planned for five prospects, with an IP geophysical target at Mt Letam the first to be tested.

 

At Gold Ridge, a company-owned drill rig is onsite and is focused on sterilisation and grade control activities as well as the commencement of broader exploration initiatives.

 

The company's senior geological consultant conducted an extensive review of past exploration activities in the Solomon Islands with a view to identifying highly perspective copper gold mineralised prospects. An application for a prospecting licence is under consideration for an additional 130km². On granting, the company will hold over 250km² of exploration tenements in largely under explored greenfields exploration areas.

 

UNDER OPTIONS

 

Unissued ordinary shares of Allied Gold Limited under option at the date of this report are as follows:

 

Date options granted	Expiry date	Exercise price of options	Number of shares under option
28 April 2008	31 December 2010	$0.80	1,000,000
28 April 2008	31 December 2010	$1.00	1,000,000
28 April 2008	31 December 2010	$1.25	1,000,000
28 April 2008	31 December 2010	$1.50	1,000,000
28 April 2008	31 December 2010	$2.00	1,000,000
2 December 2008	31 December 2010	$0.31	1,699,427
1 December 2008	31 December 2011	$0.35	12,212,500
5 December 2008	31 December 2011	$0.35	12,375,000
29 December 2008	31 December 2011	$0.35	5,425,000
11 November 2009	31 December 2011	$0.35	1,500,000
11 November 2009	31 December 2013	$0.50	37,500,000
22 December 2009	31 December 2013	$0.50	1,175,000
			76,886,927

 

Options do not entitle the holder to receive dividends paid to ordinary shareholders, to vote at shareholder meetings or to participate in any other future share issues of the company or any other entity.

 

SHARES ISSUED ON THE EXERCISE OF OPTIONS

 

During the year ended 30 June 2010, 450,000 shares in Allied Gold Limited were issued on the exercise of options granted in the current and prior financial years. Allied Gold Limited received $157,500 pursuant to the exercise of the options at $0.35 each. No shares have been issued on the exercise of options subsequent to 30 June 2010.

 

SCHEDULE OF MINING TENEMENTS

 

Mining Tenements currently held by the Group are:

 

The Simberi Mining Joint Venture owns ML136 covering the eastern portion of Simberi Island, the northern most island of the Tabar group, off New Ireland, Papua New Guinea. The Tabar Exploration Joint Venture owns EL609 which covers all of Tatau and Tabar Islands, as well as the ground on Simberi Island not covered by ML136.

 

The Gold Ridge Project consists of a Mining Lease granted 12 March 1997 (No 1/1997) that covers an area of 30km2 and a special prospecting licence (SPL194) that covers an area of 130km2.

 

ENVIRONMENTAL REGULATIONS

 

In the course of its normal mining and exploration activities the Group adheres to environmental regulations imposed upon it by the various regulatory authorities, particularly those regulations relating to ground disturbance and the protection of rare and endangered flora and fauna. The Group has complied with all material environmental requirements up to the date of this report.

 

INSURANCE OF DIRECTORS AND OFFICERS

 

During the year, the Company has paid an insurance premium in respect of a contract indemnifying the Company's directors and officers. This contract prohibits disclosure of the nature of the liability and the amount of the premium.

 

PROCEEDINGS ON BEHALF OF THE COMPANY

 

No person has applied for leave of Court to bring proceedings on behalf of the Company or intervene in any proceedings to which the company is a party for the purpose of taking responsibility on behalf of the Company for all or any part of those proceedings

 

The Company was not a party to any such proceedings during the year.

 

OTHER INFORMATION

 

The registered office and principal place of business of the Company is Unit B9, 431 Roberts Road, Subiaco, Western Australia, 6008.

REMUNERATION REPORT - audited

 

The remuneration report is set out under the following main headings:

A. Principles used to determine the nature and amount of remuneration.

B. Details of remuneration

C. Service Agreements

D. Share-based compensation

E. Additional Information.

 

The information provided in this remuneration report has been audited as required by section 308(3C) of the Corporations Act 2001.

 

A. Principles used to determine the nature and amount of remuneration

 

The objective of the Group's remuneration framework is to attract and retain executives of sufficient calibre to facilitate the efficient and effective management of the Group's operations and to ensure that executive remuneration is competitive and appropriate for the results delivered. The Board reviews the remuneration packages of all directors and executive officers on an annual basis and makes recommendations regarding the structure and value of those packages.

 

Remuneration packages are reviewed with due regard to competitiveness, performance, alignment with shareholders' interests, capital management and other relevant factors. The remuneration framework provides a mix of fixed and at risk compensation.

 

The remuneration framework is aligned to shareholders' interests through:

·; incentive payments having as a core component growth in shareholder wealth through growth in share price;

·; incentive payments focusing on the production of gold, a key non-financial driver of economic profit; and

·; attracting and retaining high calibre executives.

 

The Board has established a Remuneration and Nomination Committee which provides advice on remuneration and incentive policies and practices and specific recommendations on remuneration packages and other terms of employment for executive directors, other senior executives and non-executive directors.

 

The Executive Chairman is not present for any discussions relating to determination of his own remuneration.

 

Non-executive directors

Fees payable to non-executive directors reflect the demands which are made on, and the responsibilities of, the individual director. Non-executive directors' fees and payments are reviewed annually by the Board. During the period one non-executive director received share options in accordance with a resolution approved by shareholders at the company's Annual General Meeting held on 11 November 2009.

 

The current base remuneration for non-executive directors of $85,000 per annum was last reviewed with effect from 1 January 2010. Directors receive an additional $10,000 per annum for each Board sub-committee on which they serve as Chairman. Other directors serving on Board sub-committees receive an additional $5,000 per annum for each sub-committee to which they are appointed. Current sub-committees of the Board are the Audit, Risk and Compliance Committee and the Remuneration and Nominations Committee.

 

Non-executive directors' fees are determined within an aggregate directors' fee pool limit. The current fee pool limit of $500,000 was approved by shareholders at the Annual General Meeting on 28 November 2008.

 

 

Executive pay

Executives are offered a competitive base pay that consists of fixed components plus incentive payments that are payable at the Board's discretion. Base pay for senior executives is reviewed annually to ensure each executive's pay is competitive with the market.

 

The executive remuneration framework has three components:

·; base pay and benefits, including superannuation;

·; short term cash based incentives available to nominated executives; and

·; long term incentives through participation in the Employee Option Plan.

 

Base pay

Total base pay, including superannuation, can be structured as a total employment package which may be delivered as a combination of cash and prescribed non-financial benefits at the individual executive's discretion.

 

Base pay for executives is reviewed annually to ensure market competitiveness or any change in the executive's role and responsibilities.

 

There are no guaranteed base pay increases included in any executive remuneration contracts.

 

Employee Option Plan

The Allied Gold Limited employee option plan was re-approved by shareholders at the Annual General Meeting on 28 November 2008. The plan is designed to provide long term incentives for senior employees to deliver long term shareholder returns.

 

B. Details of Remuneration

 

The key management personnel of the Allied Gold Limited Group are the directors of Allied Gold Limited (refer pages 1 and 2 of this report) and those executives that report directly to the Executive Chairman as follows:

 

- Mr Frank Terranova, Chief Financial Officer

- Mr Ross Hastings, Manager Resource and Development

- Mr Peter Torre, Company Secretary

- Mr Phil Davies, Group Exploration Manager

- Mr Drew Anwyll, Resident Manager, Gold Ridge Operations (appointed 19 May 2010)

- Mr Peter Du Plessis, Resident Manager Simberi Operations (appointed 19 August 2008)

- Mr Fergus Hart, Resident Manager Simberi Operations (resigned 29 September 2008)

- Mr Tony Bubb, Mining Manager (resigned 30 June 2009)

 

Details of the remuneration of directors and the key management personnel of Allied Gold Limited and the Allied Gold Limited Group are set out in the following tables.

 Key management personnel of the Group and other executives of the Company and the Group - year ended 30 June 2010

 

Name	Short term - Cash salary and fees& $	Short term -Prior year salary and fees adjustment@ $	Short term- STI cash bonus $	Short term - Total $	Post employment benefits $	Share based payments - options $	Total $	Proportion of remuneration performance related %	Value of options as a proportion  of remuneration %
Non-executive directors
S Harvey	28,333	-	-	28,333	-	-	28,333	-%	-%
M House	87,500	-	-	87,500	-	270,000	357,500	76%	76%
A Lowrie	81,667	-	-	81,667	-	-	81,667	-%	-%
G Steemson	127,500	-	-	127,500	-	-	127,500	-%	-%
Sub-total non-executive directors	325,000	-	-	325,000	-	270,000	595,000
Executive directors
M Caruso ^ *	575,000	106,250	225,000	906,250	61,313	4,397,500	5,365,063	86%	82%
F Terranova ^ *	385,000	83,117	-	468,117	42,131	2,198,750	2,708,998	81%	81%
Other key management personnel
D Anwyll	64,266	-	-	64,266	4,820	-	69,086	-%	-%
P Davies^	218,000	-	-	218,000	19,260	30,870	268,130	12%	12%
P DuPlessis ^	250,000	-	-	250,000	22,500	-	272,500	-%	-%
R Hastings ^ *	280,000	-	-	280,000	25,200	88,200	393,400	22%	22%
P Torre *	105,000	-	-	105,000	-	44,100	149,100	30%	30%
Sub-total executive directors and key management personnel	1,877,266	189,367	225,000	2,291,633	175,224	6,759,420	9,226,277
Total directors and key management personnel	2,202,266	189,367	225,000	2,616,633	175,224	7,029,420	9,821,277

 

^ Denotes one of the 5 highest paid executives of the Group, as required to be disclosed under the Corporations Act 2001.

* Denotes an executive of the Company, as required to be disclosed under the Corporations Act 2001. The Company did not employ more than 4 executives.

& Salaries, fees and benefits includes gross salary and fees, fringe benefits, professional memberships and subscriptions, allowances and leave entitlements. The Company has also paid insurance premiums in respect of Directors' and Officers' Liability Insurance which is not reflected in the above table as there is no appropriate basis for allocation.

@ In the current period the base salaries of Mr Caruso and Mr Terranova were adjusted to align with market benchmarks. The adjusted salaries were effective from 1 October 2008. The adjustment amount in the above table represents amounts accrued and paid in the current period for services rendered in the prior period. Key management personnel of the Group and other executives of the Company and the Group - year ended 30 June 2009

Name	Short-term employee benefits -Cash salary and fees& $	Post employment benefits $	Total $	Share based payments - options (non cash) $	Total $	Proportion of remuneration performance related %	Value of options as a proportion  of remuneration %
Non-executive directors
M House	25,000	-	25,000	-	25,000	-%	-%
A Lowrie	74,250	-	74,250	228,451	302,701	75%	75%
G Steemson	74,250	-	74,250	228,451	302,701	75%	75%
Sub-total non-executive directors	173,500	-	173,500	456,902	630,402
Executive directors
M Caruso ^ *	360,600	-	360,600	1,198,555	1,559,155	77%	77%
R Johnson ^ *	137,254	10,603	147,857	-	147,857	-%	-%
F Terranova # ^ *	261,468	23,046	284,514	527,616	812,130	65%	65%
Other key management personnel
T Bubb	160,506	25,259	185,765	108,020	293,785	37%	37%
P DuPlessis *	175,291	15,776	191,067	146,700	337,767	43%	43%
F Hart	170,011	9,276	179,287	-	179,287	-%	-%
R Hastings ^ *	200,000	18,000	218,000	312,146	530,146	59%	59%
P Torre ^	76,000	-	76,000	167,622	243,622	69%	69%
Sub-total executive directors and key management personnel	1,541,130	101,960	1,643,090	2,460,659	4,103,749
Total directors and key management personnel	1,714,630	101,960	1,816,590	2,917,561	4,734,151

 

# F Terranova was appointed a director on 10 December 2008. Before this appointment he was the Group's Chief Financial Officer. Amounts shown above include all Mr Terranova's remuneration during the reporting period, whether as a director or as Chief Financial Officer. Amounts received in his position as director amounted to $149,676 made up of cash salary and fees of $137,763, and superannuation of $11,913.

* Denotes one of the 5 highest paid executives of the Group, as required to be disclosed under the Corporations Act 2001.

^ Denotes of the 5 highest paid executives of the Company, as required to be disclosed under the Corporations Act 2001.

& Salaries, fees and benefits includes gross salary and fees, fringe benefits, professional memberships and subscriptions, allowances and leave entitlements. The Company has also paid insurance premiums in respect of Directors' and Officers' Liability Insurance which is not reflected in the above table as there is no appropriate basis for allocation.

 

C. Service Agreements

 

There were formal service agreements with directors and key management personnel. On appointment to the Board, all non-executive directors enter into a service agreement with the relevant group company, in the form of a letter of appointment. The letter summarises the Board policies and terms, including compensation, relevant to the office of director.

 

Remuneration and other terms of employment for the Executive Chairman, Chief Financial Officer and other key management personnel are also formalised in contracts of employment. Some of these agreements provide for the provision of performance related bonuses as well as participation in the Employee Share Option Scheme. Other major provisions of the agreements relating to remuneration are set out below.

 

All contracts with executives may be terminated by either party giving relevant notice.

 

MV Caruso, Executive Chairman

·; No fixed term.

·; Base remuneration of $575,000 per annum exclusive of superannuation effective from 1 October 2009. The increase in Mr Caruso's salary to $575,000 was backdated to 1 October 2008.

·; Entitled to an annual bonus of no more than 30% of base remuneration if key performance indicators set by the Board on an annual basis are achieved. In the year ended 30 June 2010, formal key performance indicators were not established however certain of the options granted to Mr Caruso during the period include vesting conditions related to gold production and the Company's share price - refer Section D of this Remuneration Report.

·; The Board exercised its discretion to award Mr Caruso a bonus of $225,000 for achieving the acquisition of Australian Solomon Gold Limited and achieving the listing of the Company's shares on the Toronto Stock Exchange and the associated capital raising.

·; Four weeks notice of termination by Company. In the event that appointment is terminated by the Company, entitled to twelve month's base remuneration plus any amount payable in lieu of notice.

·; Eight weeks notice of termination by Executive. In the event that appointment is terminated by Executive, entitled to three month's base remuneration plus any amount payable in lieu of notice.

 

S Harvey, Non Executive Director

·; No fixed term.

·; Director's fees determined based on schedule of fees approved by Remuneration and Nomination Committee. The current schedule of fees is presented in Section A of this remuneration report.

·; Four weeks notice of termination.

 

M House, Non Executive Director

·; No fixed term.

·; Director's fees determined based on schedule of fees approved by Remuneration and Nomination Committee. The current schedule of fees is presented in Section A of this remuneration report.

·; Four weeks notice of termination.

 

A Lowrie, Non Executive Director

·; No fixed term.

·; Director's fees determined based on schedule of fees approved by Remuneration and Nomination Committee. The current schedule of fees is presented in Section A of this remuneration report.

·; Four weeks notice of termination.

 

G Steemson, Non Executive Director

·; No fixed term.

·; Director's fees determined based on schedule of fees approved by Remuneration and Nomination Committee. The current schedule of fees is presented in Section A of this remuneration report.

·; Annual retainer of $45,000 for geological consulting services.

·; Four weeks notice of termination.

 

 

P Torre, Company Secretary

·; Three year term commencing 6 October 2008.

·; Total fixed remuneration of $120,000 per annum effective 1 December 2009.

·; Three months notice of termination by Company. In the event that appointment is terminated by the Company, entitled to the lesser of three month's base remuneration or balance of contract term.

·; Three months notice of termination by Executive. In the event that appointment is terminated by Executive, entitled to three month's base remuneration plus any amount payable in lieu of notice.

 

F Terranova, Chief Financial Officer

·; No fixed term.

·; Total fixed remuneration of $419,650, inclusive of superannuation effective 1 October 2009. The increase in Mr Terranova's salary to $419,650 was backdated to 1 October 2008.

·; Entitled to an annual bonus not exceeding 30% of base payments dependent on achievement of specific objectives as determined by the Chief Executive Officer commencing the financial year ending 30 June 2010. Formal key performance indicators were not established however certain of the options granted to Mr Terranova during the period include vesting conditions related to gold production and the Company's share price - refer Section D of this Remuneration Report.

·; Eight weeks notice of termination. On termination by the Company entitled to termination pay of twelve months total fixed remuneration.

 

R Hastings, General Manager Resource and Development

·; No fixed term.

·; Total fixed remuneration of $300,000 exclusive of superannuation effective 1 January 2010.

·; Entitled to four week's pay on termination by the company or by the executive. On termination by the Company entitled to termination pay of twelve months total fixed remuneration.

 

P DuPlessis, Resident Manager Simberi Operation

·; No fixed term.

·; Base salary, exclusive of superannuation, was $250,000 per annum.

·; Entitled to a performance bonus of $22,000 gross based upon the satisfaction of achieving quarterly key performance indicators ("KPI's"). The KPI's are as follows:

(a) Average cost of gold per ounce sold for the Quarter is AUD $600 or less, as calculated by the Chief Financial Officer

(b) The total gold shipped per quarter is a minimum of 21,000 ounces.

The KPI's were not achieved in the financial period and as such there was no entitlement to a bonus under this provision of the service agreement.

·; In the event the company terminates the employment, payment of three month's salary will be paid.

 

D Anwyll, Resident Manager, Gold Ridge Operation

·; No fixed term.

·; Base annual salary $320,000 exclusive of superannuation effective 19 May 2010.

·; One month's notice of termination. In the event the company terminates the employment, payment of three month's salary will be paid.

·; Entitled to 12 month's base salary for termination without cause within first 6 months of employment plus payment in lieu of notice where applicable.

·; Entitled to 6 month's base salary for termination without cause within after 6 months but less than 18 months of employment, plus payment in lieu of notice where applicable.

·; Entitled to 6 month's base salary on termination for redundancy, plus payment in lieu of notice where applicable.

·; Entitled to an annual bonus not exceeding 30% of base salary payable after one year from commencement, dependent on achievement of agreed KPIs including but not limited to cash costs and ounces of gold produced.

·; Entitled to an annual bonus not exceeding 50% of base salary payable annually after two years from commencement, dependent on achievement of agreed KPIs including but not limited to cash costs and ounces of gold produced.

 

P Davies, Group Exploration Manager

·; No fixed term.

·; Base annual salary $218,000 exclusive of 9% superannuation effective 20 October 2008.

·; No bonus clause.

·; One month's notice of termination. In the event the company terminates the employment, payment of three month's salary will be paid.

 

D. Share Based Compensation

 

Options

Options were granted under the Allied Gold Employee Option Plan which was re-approved by shareholders at the 2008 Annual General Meeting. All full time employees, part time employees and consultants to the Group are eligible to participate in the plan at the absolute discretion of the Board.

 

Options are granted under the plan for no consideration and are at terms stipulated at the discretion of the Board.

 

The options carry no dividend or voting rights. Each option is convertible into one ordinary share in Allied Gold Limited when exercised.

 

No ordinary shares were issued pursuant to the exercise of options by any director in the year ended 30 June 2010. No options have been granted since the end of the financial year.

 

Details of options over ordinary shares in Allied Gold Limited provided as remuneration to each director of Allied Gold Limited and each of the key management personnel of the Group are set out below. Further information on the options is set out in note 27 to the financial statements.

 

	Options granted		% vested in year	% forfeited in year	Financial years in which grant vests
Name	Number	Date
Non-executive directors
M House	1,500,000	11 November, 2009	66%	-%	30 June, 2012
A Lowrie	2,000,000	5 December, 2008	13%	13%	30 June, 2011
G Steemson	2,000,000	5 December, 2008	13%	13%	30 June, 2011
Executive directors
M Caruso	3,400,000	28 April, 2008	-%	-%	30 June, 2010
	14,000,000	5 December, 2008	12%	12%	30, June 2011
	25,000,000	11 November, 2009	40%	-%	30 June, 2014
F Terranova	6,250,000	1 December 2008	12%	12%	30 June, 2011
	12,500,000	11 November, 2009	40%	-%	30 June, 2014
Other key management personnel
P DuPlessis	1,000,000	29 December 2008	18%	18%	30 June, 2011
R Hastings	3,750,000	1 December 2008	13%	13%	30 June, 2011
	500,000	22 December, 2009	100%	-	30 June, 2014
P Torre	2,000,000	1 December 2008	13%	13%	30 June, 2011
	250,000	22 December, 2009	100%	-	30 June, 2014
P Davies	1,000,000	29 December 2008	18%	18%	30 June, 2011
	175,000	22 December, 2009	100%	-	30 June, 2014

 

The percentage forfeited in the above table represents the reduction from the maximum number of options available to vest due to performance criteria not being achieved.

 

The movement during the reporting period, by value, of options over ordinary shares in the Company held by each key management personnel and other executives of the Company and the Group is detailed below:

 

Name	Value options granted during the year(A) $	Value of options exercised in the year(B) $	Value of options lapsed in year(C) $
Non-executive directors
M House	270,000	-	-
A Lowrie	-	-	46,750
G Steemson	-	-	46,750
Executive directors
M Caruso	4,397,500	-	939,675
F Terranova	2,198,750	-	140,250
Other key management personnel
P DuPlessis	-	-	32,725
R Hastings	88,200	-	93,500
P Torre	44,100	-	46,750
P Davies	30,870	-	93,500

 

(A) The assessed fair value at grant date of options to the individuals is included in the remuneration tables set out in the remuneration tables in Section B of this Remuneration Report. Fair values at grant date are independently determined using the binomial option pricing model that takes into account the exercise price, the term of the option, the impact of dilution, the share price at grant date and expected 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 all options yet to vest was expensed at the grant date.

 

(B) During the period none of the named executives or key management personnel exercised any options.

 

(C) The value of options that lapsed during the year represents the benefit foregone and is calculated at the date the option lapsed using the binomial option pricing model assuming the performance criteria had been achieved.

 

Where options are subject to vesting conditions, no options will vest if the conditions are not satisfied, hence the minimum value of the option yet to vest is nil. The fair value of all options yet to vest was expensed at the grant date. The assessed fair value at grant date of options to the individuals is included in the remuneration tables set out in Section B of this Remuneration Report. Fair values at grant date are independently determined using the binomial option pricing model that takes into account the exercise price, the term of the option, the impact of dilution, the share price at grant date and expected volatility of the underlying share, the expected dividend yield and the risk-free interest rate for the term of the option. The model inputs for the options granted during the year ended 30 June 2010 included:

 

Non Executive Director options issued 11 November 2009

 

		No vesting conditions		Vesting condition1
Fair value at grant date		$0.187		$0.187
Exercise price		$0.35		$0.35
Grant date		11/11/2009		11/11/2009
Expiry date		31/12/2011		31/12/2011
Share price at grant date		$0.425		$0.425
Expected price volatility of shares		65%		65%
Expected dividend yield		0%		0%
Risk free interest rate		4.83%		4.83%
Probability discount applied in relation to vesting conditions		0%		40%
Number of options		1,000,000		500,000

 

1Options may not vest until the ordinary share price of the Company's shares is greater than $0.70 for five consecutive days after the date of grant.

 

Executive Director options issued 11 November 2009

 

		Tranche A options1		Tranche B options2		Tranche C options3
Fair value at grant date		$0.166		$0.215		$0.167
Exercise price		$0.50		$0.50		$0.50
Grant date		11/11/2009		11/11/2009		11/11/2009
Expiry date		31/12/2013		31/12/20134		31/12/2013
Share price at grant date		$0.425		$0.425		$0.425
Expected price volatility of shares		65%		65%		65%
Expected dividend yield		0%		0%		0%
Risk free interest rate		4.97%		5.25%		4.97%
Probability discount applied in relation to vesting conditions		0%		0%4		40%
Number of options issued		15,000,000		15,000,000		7,500,000

 

1 Tranche A - vest on grant date.

 

2 Tranche B - vest upon the 100,000th ounce of gold production between 1 October 2009 and 31 December 2010

 

3 Tranche C - vest when the weighted average price of Allied shares is greater than 70 cents for five consecutive days.

 

4 In calculating the fair value of the Tranche options subject to gold production performance conditions, the term to expiry was reduced to 1/7/2012 from 31/12/2013 to more fully reflect the vesting condition.

Employee options issued 22 December 2009

	No vesting conditions
Fair value at grant date	$0.166
Exercise price	$0.50
Grant date	22/12/2009
Expiry date	31/12/2013
Share price at grant date	$0.33
Expected price volatility of shares	65%
Expected dividend yield	0%
Risk free interest rate	4.97%
Probability discount applied in relation to vesting conditions	0%
Number of options	1,175,000

 

 E. Additional information

 

The table below presents information that summarises the financial performance of the Group over the most recent four year period:

 

	2010	2009	2008	2007
Revenue	$67.55m	$77.47 m	$23.39m	$1.85m
Net profit/(loss) after tax	$10.3m	($7.07)m	($9.54)m	($1.88)m
Share price at year end	$0.37	$0.41	$0.59	$0.44
Number of shares on issue at year end	1,040m	472.6m	377.0m	337.6m

 

As the Group has only recently transitioned into gold production and is continuing the process of establishing a stable operating base, it is considered impractical to provide a meaningful measure of historical Group's financial performance in relation to executive remuneration.

 

It is intended that as the Group's operations stabilise that a more structured performance measurement and reward framework for key management personnel will be designed and implemented in consultation with the Remuneration and Nomination Committee. It is anticipated that such a framework will include the establishment of key performance indicators that align executive remuneration with Group performance and shareholder returns.

 

For each key management personnel or other executive of the Group whose remuneration contract provides for payment of a cash bonus , the percentage of the available bonus or grant that was paid, in the financial year and the percentage that was forfeited because the person did not meet the service and performance criteria is set out below.

 

Name	2010		2009
	Paid %	Forfeited %	Paid %	Forfeited %
M Caruso	100%	-%	-%	100%
F Terranova	-%	100%	-%	100%
P DuPlessis	-%	100%	-%	100%
D Anwyll	-%	100%	n/a	n/a

 

The percentage paid represents the amount that vested in the financial year based on achievement of personal goals and satisfaction of specified performance criteria as a percentage of the maximum bonus payable provided for in relevant remuneration contract.

 

The percentage forfeited represents the amounts forfeited due to service criteria not being met as a percentage of the maximum bonus payable provided for in relevant remuneration contract.

 

End of audited remuneration report.

 

Non-audit Services

 

The board of directors is satisfied that the provision of non-audit services during the year is compatible with the general standard of independence for auditors imposed by the Corporations Act 2001. The directors are satisfied that the services disclosed below did not compromise the external auditor's independence for the following reasons:

 

·; all non-audit services are reviewed and approved by the Board of Directors prior to commencement to ensure they do not adversely affect the integrity of the auditor; and

 

·; the nature of the services provided do not compromise the general principles relating to auditor independence as set out in APES 110 Code of Ethics for Professional Accountants.

 

 

The following fees for non-audit services were paid/payable to the external auditors during the year ended 30 June.

2010 2009

Other assurance services (BDO Audit (WA) Pty Ltd)   Other non assurance services(BDO Corporate Finance (WA) Pty Ltd)

91,600   62,762

-   -

 

AUDITOR'S INDEPENDENCE DECLARATION

 

 

The auditor's Independence Declaration as required under section 307C of the Corporations Act 2001 on page 82 forms part of the Directors' Report for the year ended 30 June 2010.

 

 

 

Statement of Comprehensive Income

 

		Group
	Note	2010		2009 (restated)
		$		$
Revenue	6	67,555,369		77,467,668
Cost of sales	7	(70,289,540)		(66,436,649)
Gross profit		(2,734,171)		11,031,019
Gains / (losses) on derivatives		(176,084)		1,133,187
Corporate expenses		(14,773,680)		(7,545,907)
Share based remuneration	27(b)	(6,828,559)		(4,130,120)
Impairment of available for sale assets		(7,740)		(1,214,402)
Bargain purchase - gain on acquisition of subsidiary	30	36,666,786		-
Other expenses		-		(3,426,778)
Other income	6	2,243,413		149,937
Financial income	6	1,834,972		327,760
Financial expenses	8	(5,996,122)		(3,396,347)
Profit / (loss) before tax		10,228,815		(7,071,651)
Income tax benefit / (expense)	9	-		-
Profit / (loss) after tax attributable to owners of Allied Gold Limited		10,228,815		(7,071,651)
Other comprehensive income
Foreign currency translation differences		6,072,425		(252,552)
Effective portion of changes in fair value of cash flow hedges, net of tax		(1,580,412)		6,520,145
Net change in fair value of cash flow hedges transferred to profit or loss, net of tax		5,846,153		7,484,731
Restatement of fair value of cash flow hedges	3(j)	-		(4,320,305)
Net change in fair value for available for sale financial assets, net of tax		1,373,921		129,843
Net change in fair value of available for sale financial assets transferred to profit, net of tax		(1,006,313)		-
Total other comprehensive income		10,705,774		9,561,862
Total comprehensive income for the year attributable to the owners of Allied Gold Limited		20,934,589		2,490,211
Profit / (loss) per share for loss attributable to the ordinary equity holders of Allied Gold Limited Basic earnings / (loss) per share (cents) Diluted earnings / (loss) per share (cents)		1.31 1.31		(1.65) (1.65)

 

The statement of comprehensive income is to be read in conjunction with the notes to the financial statements.

 

 

Statement of Financial Position

 

				Group
			Note		2010 $		2009 (restated) $
	CURRENT ASSETS
	Cash and cash equivalents		28(a)		85,525,391		20,529,979
	Trade and other receivables		10		4,160,718		800,494
	Inventories		11		11,795,370		14,269,497
	Derivative financial instruments		12		-		2,509,294
	Other assets		14		3,066,675		246,792
	Total Current Assets				104,548,154		38,356,056
	NON-CURRENT ASSETS
	Derivative financial instruments		12		-		851,002
	Available for sale financial assets		13		524,230		348,974
	Property, plant and equipment		15		302,874,641		145,861,709
	Exploration and evaluation expenditure		16		23,711,261		11,115,743
	Total Non-Current Assets				327,110,137		158,177,428
	Total Assets				431,658,286		196,533,484
	CURRENT LIABILITIES
	Trade and other payables		18		44,031,998		20,683,026
	Borrowings		19		4,481,970		2,094,483
	Derivative financial instruments		12		-		12,636,875
	Provisions		20		1,008,116		491,709
	Total Current Liabilities				49,522,084		35,906,093
	NON-CURRENT LIABILITIES
	Borrowings		19		1,755,820		3,845,885
	Derivative financial instruments		12		-		7,123,887
	Provisions		20		9,315,217		2,782,426
	Total Non-Current Liabilities				11,071,037		13,752,198
	Total Liabilities				60,593,121		49,658,291
	NET ASSETS				371,065,151		146,875,193
	EQUITY
	Contributed equity		21		369,525,183		173,098,363
	Reserves		22		17,099,422		(434,901)
	Accumulated losses		22		(15,559,454)		(25,788,269)
	TOTAL EQUITY				371,065,151		146,875,193

 

The statement of financial position is to be read in conjunction with the notes to the financial statements.

 

Statements of cash flows

 

	Note	Group
		2010 $		2009 $
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers		67,593,909		78,160,874
Payments to suppliers & employees		(70,897,182)		(61,115,934)
(Payments) / proceeds from settlement of derivatives		(17,826,546)		5,122,882
Interest received		1,590,685		327,760
Interest paid		(970,264)		(932,382)
Net cash generated by / (used in ) operating activities	28(b)	(20,509,398)		21,563,200
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of equity investments		(15,075)		(241,200)
Proceeds from sale of available for sale financial assets		1,206,000		-
Purchase of plant & equipment		(52,105,472)		(16,246,475)
Development expenditure		(6,915,672)		(7,205,878)
Exploration and evaluation expenditure		(9,544,311)		(708,957)
Cash acquired on acquisition of subsidiary	30	3,573,926		-
Net cash used in investing activities		(63,800,604)		(24,402,510)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from the issue of securities		159,545,451		41,575,365
Costs of raising equity capital		(9,935,846)		(1,766,744)
Proceeds from borrowings		5,205,282		2,900,000
Finance lease payments		(5,411,333)		(3,337,264)
Repayments of borrowings		(726,497)		(16,407,977)
Net cash generated by financing activities		148,677,057		22,963,380
Net increase in cash and cash equivalents		64,367,055		20,124,070
Cash and cash equivalents at beginning of financial year		20,529,979		154,180
Effects of exchange rate changes on the balance of cash and cash equivalents		628,357		251,729
Cash and cash equivalents at end of financial year	28(a)	85,525,391		20,529,979

 

The statement of cash flows is to be read in conjunction with the notes to the financial statement

Statement of changes in equity

	Note	Issued Capital	Accumulated Losses (restated)	Share-based payments reserve	Foreign exchange translation reserve	Available for sale investments revaluation reserve	Cash Flow Hedging Reserve (restated)	Total	Non-controlling interest	Total equity
Group		$	$	$	$	$	$	$	$	$
Balance at 1 July 2008		133,686,704	(16,030,754)	5,502,877	(392,076)	6,546	(22,073,514)	100,699,783	-	100,699,783
Adjustment on change in accounting policy	3(j)	-	(2,685,864)	-	-	-	2,685,864	-	-	-
Restated total equity at 1 July 2008		133,686,704	(18,716,618)	5,502,877	(392,076)	6,546	(19,387,650)	100,699,783	-	100,699,783
Total comprehensive income for the period as reported in the 2009 financial statements
Loss for the period		-	(8,226,666)	-	-	-	-	(8,226,666)	-	(8,226,666)
Adjustment on change in accounting policy	3(j)	-	1,155,015	-	-	-	-	1,155,015	-	1,155,015
Restated loss for the period		-	(7,071,651)	-	-	-	-	(7,071,651)	-	(7,071,651)
Other comprehensive income
Foreign currency translation differences		-	-	-	(252,552)	-	-	(252,552)	-	(252,552)
Effective portion of changes in fair value of cash flow hedges, net of tax		-	-	-	-	-	6,520,145	6,520,145	-	6,520,145
Net change in fair value of cash flow hedges transferred to profit or loss, net of tax		-	-	-	-	-	7,484,731	7,484,731	-	7,484,731
Net change in fair value for available for sale financial assets, net of tax		-	-	-	-	129,843	-	129,843	-	129,843
Total other comprehensive income as reported in the 2009 financial statements		-	-	-	(252,552)	129,843	14,004,876	13,882,167	-	13,882,167
Adjustment on change in accounting policy	3(j)	-	-	-	-	-	(4,320,305)	(4,320,305)	-	(4,320,305)
Restated total other comprehensive income			-	-	(252,552)	129,843	9,684,571	9,561,862	-	9,561,862
Total comprehensive income for the period		-	(7,071,651)	-	(252,552)	129,843	9,684,571	2,490,211	-	2,490,211
The statement of changes in equity is to be read in conjunction with the notes to the financial statements.
Transactions with owners, recorded directly in equity
Contributions by and distributions to owners
Issue of ordinary shares, net of transaction costs		39,411,659	-	-	-	-	-	39,411,659	-	39,411,659
Share based payments		-	-	4,273,540	-	-	-	4,273,540	-	4,273,540
Total transactions with owners		39,411,659	-	4,273,540	-	-	-	43,685,199	-	43,685,199
Balance at 30 June 2009 (restated)		173,098,363	(25,788,269)	9,776,417	(644,628)	136,389	(9,703,079)	146,875,193	-	146,875,193
Total comprehensive income for the period
Profit		-	10,228,815	-	-	-	-	10,228,815	-	10,228,815
Other comprehensive income
Foreign currency translation differences		-	-	-	6,072,415	-	-	6,072,415	-	6,072,415
Effective portion of changes in fair value of cash flow hedges, net of tax		-	-	-	-	-	(1,580,412)	(1,580,412)	-	(1,580,412)
Net change in fair value of cash flow hedges transferred to profit or loss, net of tax		-	-	-	-	-	5,846,153	5,846,153	-	5,846,153
Net change in fair value for available for sale financial assets, net of tax		-	-	-	-	1,373,921	-	1,373,921	-	1,373,921
Net change in fair value of available for sale financial assets transferred to profit, net of tax		-	-	-	-	(1,006,313)	-	(1,006,313)	-	(1,006,313)
Total other comprehensive income		-	10,228,815	-	6,072,415	367,608	4,265,741	10,705,764	-	10,705,764
Total comprehensive income for the period		-	10,228,815	-	6,072,415	367,608	4,265,741	20,934,579	-	20,934,859
Transactions with owners, recorded directly in equity
The statement of changes in equity is to be read in conjunction with the notes to the financial statements
Contributions by and distributions to owners
Issue of ordinary shares, net of transaction costs		149,452,106	-	-	-	-	-	149,452,106	-	149,452,106
Issue of ordinary shares related to business combination		46,817,214	-	-	-	-	-	46,817,214	-	46,817,214
Share based payments		-	-	6,828,559	-	-	-	6,828,559	-	6,828,559
Share options exercised		157,500	-	-	-	-	-	157,500	-	157,500
Total contributions by and distributions to owners		196,426,820	-	6,828,559	-	-	-	203,255,379	-	203,255,379
Changes in ownership interests in subsidiaries that do not result in a loss of control
Non controlling interest on acquisition of subsidiary		-	-	-	-	-	-	-	1,290,667	1,290,667
Acquisition of non-controlling interest		-	-	-	-	-	-	-	(1,290,667)	(1,290,667)
Total changes in ownership interests in subsidiaries		-	-	-	-	-	-	-	-	-
Total transactions with owners		196,426,820	-	6,828,559	-	-	-	203,255,379	-	203,255,379
Balance at 30 June 2010		369,525,183	(15,559,454)	16,604,976	5,427,787	503,997	(5,437,338)	371,065,150	-	371,065,150

The statement of changes in equity is to be read in conjunction with the notes to the financial statements.