21st Dec 2007 14:52
Triple Plate Junction Plc21 December 2007 For immediate release 21 December 2007 Triple Plate Junction ("TPJ" or the "Company") Interim Results for six months ended 30 September 2007 Triple Plate Junction PLC (AIM:TPJ), the gold exploration company, is pleased toannounce interim results for the six months ended 30 September 2007. Agreements •Joint Venture ("JV") with Barrick Gold Corporation for TPJ's Wamum licence in Papua New Guinea ("PNG") in addition to existing JV with Newmont means TPJ has agreements with the World's top two gold mining companies Vietnam •TPJ's drilling rig has intersected both narrow high-grade gold and copper bearing structures •Widely disseminated copper-gold minerialisation within a 15km and 10km corridor Papua New Guinea •Nine holes completed on Otbanda project. Scope and scale of discovery continues to grow •Drilling set to commence on Manus island at the Kisi project in Q1 2008 Africa •Reduced availability of copper oxide feed held back progress •Ability to process a wide variety of ores will improve the efficiency and profitability of the furnace operations Capital Expenditure £€1.5m spent on exploration and on the construction of electric arc furnaces and copper ore procurement Ian Gowrie-Smith, Chairman, commented: "Triple Plate Junction has made significant strides forward. Joint ventures withthe World's top two gold mining companies says a lot about TPJ's exciting andextensive assets. The business is developing rapidly." For further information please contact:Triple Plate Junction PLC 020 7340 9970Geoff Walsh, Chief ExecutivePeter Wright, Finance Director Buchanan Communications 020 7466 5000Tim Anderson, Isabel Podda Arbuthnot Securities 020 7012 2000John Prior TRIPLE PLATE JUNCTION PLC Chairman's Statement Triple Plate Junction Plc (TPJ or the Company) has continued to make significantstrides forward in the half-year to September 2007. The Company has: • Increased the potential of the Otibanda gold project in Papua New Guinea (PNG) through a continuing aggressive exploration programme; • Concluded a joint venture agreement with Barrick Gold Corporation in respect of TPJ's Wamum exploration licence in PNG; • Focused on drilling high-grade and lower-grade bulk tonnage alkali porphyry type copper-gold mineralisation at the Pu Sam Cap project in Vietnam in which Newmont Mining Corporation is a partner; and • Produced and sold blister copper at TPJ's smelter operations in Zambia. Capital expenditure to 30 September 2007 of £1.5m was spent on explorationactivities in Vietnam (£427k), Papua New Guinea (£980k) and exploration andconstruction of electric arc furnaces and copper ore procurement operations inAfrica (£93k). The Company now has joint ventures with Barrick and Newmont, the World's top twogold mining companies, and we believe this is testament to the highlyprospective acreage under TPJ's licences and the high quality work undertaken byour geological teams in PNG and Vietnam. Vietnam - TPJ has effectively used its man-portable diamond drill-rig tocontinue testing the very large alkalic porphyry-type copper-gold systemdiscovered at Pu Sam Cap in Lai Chau Province, Vietnam. Drilling has intersectedboth narrow high-grade gold and copper bearing structures and widelydisseminated copper-gold mineralisation within a 15km long and 10km widecorridor. Papua New Guinea - The Otibanda project in the Wau-Morobe mineral provincecontinues to be a prime focus for the Company's efforts. The Company has nowcompleted nine diamond drill holes on the Otibanda and Waikanda lodes and thescope and scale of the discovery continues to grow. Management continues tobelieve that Otibanda is a project of major proportions and will continue todominate exploration efforts for the foreseeable future. Drilling is also set tocommence on Manus Island at the Kisi gold prospect in early Q1 2008. Inaddition, TPJ has entered into a joint venture agreement with Barrick on theCompany's Wamum exploration licence and we are encouraged by the seriousattention that the World's major mining companies are showing towards theWau-Morobe belt, in which TPJ holds a substantial strategic land position. Africa - Progress in Zambia at the copper smelting operation has been hamperedby the reduced availability of copper oxide feed of a quality suitable for theelectric-arc furnaces. The Company has now produced high-purity blister copperas well as cobalt matte. Steps are being taken to significantly reduce theCompany's dependence on oxide ores and allow the processing of both sulphide andoxide ores. Management believes that the ability to process a wider variety ofores will improve the efficiency and profitability of the furnace operations. Summary - 2007 has been a year of relentless, focused field work for TPJ, bothin PNG at the Otibanda project which is shaping up into a major gold system, andat the Pu Sam Cap project in Vietnam where the size and extent of thealkalic-porphyry copper-gold system continues to grow. Africa has fallen shortof initial expectations due to circumstances beyond the Company's sphere ofinfluence however positive steps have been taken to put the operation on a solidfooting for 2008 IanGowrie-Smith Chairman 19 December 2007 TRIPLE PLATE JUNCTION PLC Condensed consolidated income Restated Restatedstatement 6 months to 6 months to Year to 30 Sept 30 Sept 31 Mar 2007 2006 2007 £'000 £'000 £'000 Unaudited Unaudited Unaudited Notes Revenue - -Cost of sales - - --------- --------- --------- Gross profit - - Administration expenses (1,025) (756) (1,202) --------- --------- --------- Operating profit (1,025) (756) (1,202) Finance income 58 174 308Finance expense - - - --------- --------- --------- Profit / (loss) before taxation (967) (582) (894)Taxation - - - --------- --------- --------- (Loss) for the period (967) (582) (894) ========= ========= ========= ========= ========= ========= Earnings per shareBasic & Diluted (pence per share) (1.02) (0.62) (0.95) ========= ========= ========= TRIPLE PLATE JUNCTION PLC Condensed consolidated balance sheet Restated Restated 30 Sept 30 Sept 31 Mar 2007 2006 2007 £'000 £'000 £'000 Unaudited Unaudited Unaudited NotesAssetsNon-current assetsProperty, plant and equipment 1,660 577 1,865Intangible assets 3 17,997 15,036 16,598 --------- --------- --------- Total non-current assets 19,657 15,613 18,463 Current assetsTrade and other receivables 695 458 556Cash and cash equivalents 1,287 6,566 3,908 --------- --------- --------- Total current assets 1,982 7,024 4,464 Current liabilitiesTrade and other payables 240 210 670Current tax liabilities 23 - - --------- --------- --------- Total current liabilities 263 210 670 --------- --------- --------- Net current assets 1,719 6,814 3,794 --------- --------- --------- Net assets 21,376 22,427 22,257 ========= ========= ========= EquityIssued capital 944 944 944Share premium 16,969 16,969 16,969Option reserve 1,251 1,023 1,165Retained earnings 2,220 3,499 3,187 --------- --------- --------- Total equity 21,384 22,435 22,265Minority interests (8) (8) (8) --------- --------- --------- Total equity 21,376 22,427 22,257 ========= ========= ========= TRIPLE PLATE JUNCTION PLC Condensed consolidated statement of changes in equity Share Share Option Retained Minority Total capital premium reserve earnings interest equity £'000 £'000 £'000 £'000 £'000 £'000 At 1 April 2006 944 16,969 814 4,081 (8) 22,800 Loss fortheperiod after tax (582) (582) ------- ------- ------- ------- ------- -------Totalrecognisedincome andexpense (582) (582) Equitysettled shareoptions 209 209 ------- ------- ------- ------- ------- -------At 30September 2006 944 16,969 1,023 3,499 (8) 22,427 Loss fortheperiod after tax (312) (312) ------- ------- ------- ------- ------- -------Totalrecognisedincome andexpense (312) (312) Equitysettled shareoptions 142 142 ------- ------- ------- ------- ------- -------At 31 March2007 944 16,969 1,165 3,187 (8) 22,257 Loss fortheperiod after tax (967) (967) ------- ------- ------- ------- ------- -------Totalrecognisedincome andexpense (967) (967) Equitysettled shareoptions 86 86 ------- ------- ------- ------- ------- -------At 30September 2007 944 16,969 1,251 2,220 (8) 21,376 ======= ======= ======= ======= ======= ======= TRIPLE PLATE JUNCTION PLC Condensed consolidated cashflow statement Restated RestatedFor the period 1 April 2007 to 30 6 months 6 months Year toSeptember 2007 to to 30 Sept 30 Sept 31 Mar 2007 2006 2007 £'000 £'000 £'000 Unaudited Unaudited Unaudited NotesCash flows from operating activitiesLoss for the period (967) (582) (894)Adjusted by:Depreciation of non-current assets 116 66 144Share based payment 86 209 351Loss on disposal of assets 8 - 10Finance costs in the income statement (58) (174) (308) --------- --------- --------- (815) (481) (697)Movements in working capital:Decrease / (increase) in trade andother receivables (139) (234) (291)(Decrease) / increase in trade andother payables (407) (143) 276 --------- --------- --------- Net cash used in operating activities (1,361) (858) (712) Cash flows from investing activitiesInterest received 58 174 308Payments for property plant andequipment 81 (351) (1,727)Payments for intangible assets (1,399) (1,683) (3,245) --------- --------- --------- Net cash used in investing activities (1,260) (1,860) (4,664) --------- --------- --------- Total increase in cash and cashequivalents (2,621) (2,718) (5,376)Cash and cash equivalents at the startof the period 3,908 9,284 9,284 --------- --------- --------- Cash and cash equivalents at the end ofthe period 1,287 6,566 3,908 ========= ========= ========= TRIPLE PLATE JUNCTION PLC Notes to the consolidated financial statements Basis of preparation The unaudited consolidated interim financial information is for the six monthperiod ended 30 September 2007. It has been prepared in accordance with theaccounting policies set out below which are based on the recognition andmeasurement principles of IFRS in issue as adopted by the European Union (EU)and are effective at 30 March 2008 or are expected to be adopted and effectiveat 30 March 2008, our first annual reporting date at which we are required touse IFRS accounting standards adopted by the EU. The interim financialinformation does not include all of the information required for full annualfinancial statements. From 1 April 2006 the Group has adopted International Financial ReportingStandards (IFRS) in the preparation of its consolidated financial statements.Comparative financial information previously published under UK GenerallyAccepted Accounting Principles has been restated on an IFRS basis for theopening balance sheet as at 1 April 2006, interim accounts as at 30 September2006 and for the year end 31 March 2007. The change in the Group's reportedperformance and financial position on adopting IFRS is fully disclosed in theseinterim consolidated financial statements. The interim financial information has not been audited nor has it been reviewedunder Bulletin 99/4 of the Auditing Practices Board. The financial informationset out in this interim report does not constitute statutory accounts as definedin Section 240 of the Companies Act 1985. The Group's statutory financialstatements for the year ended 31 March 2007 prepared under UK GAAP have beenfiled with the Registrar of Companies. The auditors report on those financialstatements was unqualified and did not contain a statement under Section 237(2)of the Companies Act 1985. First time adoption The opening IFRS balance sheet as at the date of transition on 1 April 2006 hasbeen prepared in accordance with IFRS 1 'First time adoption' and the mostsignificant optional exemptions adopted are shown below:- a) IAS 21 The effects of changes in foreign exchange rates Cumulative translation differences which exist at the time of the transition canbe transferred into the retained earnings and the foreign exchange reservetherefore shows only differences arising after transition (IFRS 1 'First timeadoption of IFRS'). b) IFRS 3 Business combinations Business combinations prior to the date of transition to IFRS need not berestated (IFRS 1 'First time adoption of IFRS'). c) IFRS 2 Share based payment Share based payments have been adopted for share options not vested by 1 April2006. 1. Accounting policies Consolidation Subsidiaries are all entities over which the Group has the power to govern thefinancial and operating policies generally accompanying a shareholding of overone half of the voting rights. The existence and effect of potential votingrights that are currently exercisable or convertible are considered whenassessing whether the Group controls another entity. Subsidiaries are fullyconsolidated from the date on which control is transferred to the Group. Theyare deconsolidated on the date control ceases. The Group uses the purchase method of accounting for the acquisition of asubsidiary. The cost of an acquisition is measured by the fair value of theassets given, equity instruments issued and liabilities incurred or assumed atthe date of exchange, plus costs directly attributable to the acquisition.Identifiable assets acquired and liabilities and contingent liabilities assumedin a business combination are measured initially at their fair values at theacquisition date irrespective of the extent of any minority interest. The excessof the cost of acquisition over the fair value of the Group's share of theidentifiable net assets acquired is recorded as goodwill. If the cost of theacquisition is less than the fair value of the net assets of the subsidiaryacquired the difference is recognised directly in the income statement. Inter-company transactions, balances and unrealised gains and losses ontransactions between group companies are eliminated. TRIPLE PLATE JUNCTION PLC Notes to the consolidated financial statements (continued) Jointly controlled assets The Group is party to the joint ownership and control of assets but withoutsetting up a separate entity. The Group therefore accounts for its share of theincomes, costs, assets and liabilities resulting from the utilisation of thejointly controlled assets on the basis of the agreed percentage of ownership andincluding any amounts incurred jointly with the other venturers. Segment reporting A business segment is a group of assets and operations engaged in productionthat is subject to risks and returns that are different from those of otherbusiness segments. A geographical segment is engaged in production within aparticular economic environment that is different from that in segmentsoperating in other economic environments. The primary segment for the Group is the mining, production and processing ofgold which is traded as a commodity on a world wide basis. The directors do nottherefore provide additional segmental reporting. The Group's secondary segmental reporting analysis is geographical and based onthe significant areas of operations which are Vietnam, Papua New Guinea andZambia. Foreign currency translation a) Functional and presentational currency Items included in the financial statements of each of the Group's entities aremeasured using the currency of the primary economic environment in which theentity operates (the functional currency). The company's functional currency andthe Group's presentational currency is Sterling. b) Transactions and balances Foreign currency transactions are translated into the functional currency usingthe exchange rates prevailing at the dates of the transactions. Foreign exchangegains and losses resulting from the settlement of such transactions and from thetranslation at reporting period end exchange rates of monetary assets andliabilities denominated in foreign currencies are recognised in the incomestatement. c) Group companies The results and financial position of all group entities that have a functionalcurrency different from the presentation currency are translated into thepresentation currency as follows: - Assets and liabilities for each balance sheet presented are translated at the closing rate at the date of the balance sheet. - Income and expenses for each income statement are translated at the transaction date but the average exchange rate for the period is an acceptable approximation and; - All resulting exchange differences are recognised as a separate component of equity. On consolidation, exchange differences arising from the translation of the netinvestment in foreign entities are taken to equity and as previously describedthe Group has claimed the transitional exemption from retrospective applicationof IAS 21 'The effects of changes in foreign exchange rates'. This means thatequity will show only post transition foreign exchange differences. Differencesinitially brought to equity are recycled to the income statement on disposal ofthe business. TRIPLE PLATE JUNCTION PLC Notes to the consolidated financial statements (continued) Income and expense recognition Revenue is the fair value of the total amount receivable by the Group forsupplies of goods and services. VAT or similar local taxes and trade discountsare excluded. Interest income and expenditure are reported on an accruals basis. Dividendsreceived are recognised at the time of their distribution. Operating expensesare recognised in the income statement upon utilisation of the service or at thedate of their origin. Borrowing costs All borrowing costs are expensed to the income statement on an accrual basisusing the effective interest rate method except where they are interest onborrowings to finance expenditure on property plant and equipment underdevelopment which is capitalised and depreciated with the rest of the costs ofthe asset or written off where the project is not deemed viable. Intangibles Exploration and evaluation expenditure Exploration and evaluation (E & E) expenditure costs comprise costs associatedwith the acquisition of mineral rights and mineral exploration, including thoseincurred through jointly held assets, and are capitalised as intangible assetspending determination of the feasibility of the project. They also includecertain administrative costs that are allocated to the extent that those costscan be related directly to operational activities. If an exploration project is deemed successful based on feasibility studies, therelated expenditures are transferred to development and production (D & P)assets and amortised over the estimated life of the ore reserves on a unit ofproduction basis. Where a project is abandoned or considered to be no longereconomically viable, the related costs are written off in the income statement. Property, plant and equipment Property, plant and equipment are recorded at cost net of accumulateddepreciation and any provision for impairment. Depreciation is provided usingthe straight line method to write off the cost of the asset less any residualvalue over its useful economic life as follows: Long leasehold property 2% Motor vehicles 25% Office & computer equipment 25% Camp, field and geological equipment 25% Mining plant and equipment consist of buildings, machinery, vehicles andfixtures & fittings which are depreciated over the shorter of the estimateduseful life of the asset or the life of the mine. Mining property for mines in production, including pre-stripping costs, iswritten off on a unit of production basis over the life of the mine. Leases All current leases are regarded as operating leases and the payments made underthem are charged to the income statement in the period in which they areincurred. The company does not act as a lessor. TRIPLE PLATE JUNCTION PLC Notes to the consolidated financial statements (continued) Financial assets Financial assets consist of cash and financial instruments. Financialinstruments consist of trade and other receivables. Financial assets areassigned to their different categories by management on initial recognition,depending on the purpose for which the investment was acquired. Derecognition of financial instruments occurs when the rights to receive cashflows expire or are transferred and substantially all of the risks and rewardsof ownership have been transferred. An assessment for impairment is undertakenat least at each balance sheet date whether or not there is objective evidencethat a financial asset or a group of financial assets is impaired. Provision against trade receivables is made when there is objective evidencethat the Group will not be able to collect all amounts due to it in accordancewith the original terms of those receivables. The amount of the write down isdetermined as the difference between the assets carrying amount and the presentvalue of estimated future cash flows. Financial liabilities The Group's financial liabilities include trade & other payables. Financial liabilities are recognised when the Group becomes a party to thecontractual agreements of the instrument. All interest related charges arerecognised as an expense in 'Finance costs' in the income statement. Trade payables are recognised initially at their nominal value and subsequentlymeasured at amortised costs less settlement payments. Dividend distributions to shareholders are included in 'Other short termfinancial liabilities' when the dividends are approved by the shareholdersmeeting. TRIPLE PLATE JUNCTION PLC Notes to the consolidated financial statements (continued) Income taxes Current income tax assets and liabilities comprise those obligations to fiscalauthorities in the countries in which the Group carries out mining operationsand where it generates its profits. They are calculated according to the taxrates and tax laws applicable to the fiscal period and the country to which theyrelate. All changes to current tax liabilities are recognised as a component oftax expense in the income statement. Deferred income taxes are calculated using the liability method on temporarydifferences. This involves the comparison of the carrying amount of assets andliabilities in the consolidated financial statements with their respective taxbases. Deferred tax liabilities are always provided for in full. Deferred tax assetsand liabilities are calculated at tax rates that are expected to apply to theirrespective period of realisation, provided they are enacted or substantivelyenacted at the balance sheet date. Cash and cash equivalents Cash and cash equivalents include cash at bank and in hand, and additionallyincludes deposits repayable on demand by banks and other short term investmentswith original maturities of three months or less. Equity Share capital is determined using the nominal value shares that have beenissued. Equity is any contract which evidences residual interest in the assetsof the Group after deducting all its liabilities. TRIPLE PLATE JUNCTION PLC Notes to the consolidated financial statements (continued) Provisions Provisions are recognised when the present obligations arising from legal orconstructive commitment resulting from past events, will probably lead to anoutflow of economic resources from the Group which can be estimated reliably. Provisions are measured at the present value of the estimated expenditurerequired to settle the present obligation, based on the most reliable evidenceavailable at the balance sheet date. All provisions are reviewed at each balance sheet date and adjusted to reflectthe current best estimates. Mining operations are generally required to restore mine and processing sites atthe end of their producing lives to a condition acceptable to the relevantauthorities and consistent with the Group's environmental policies. Provisionsin the accounts are made when obligations arise and can be quantified. Investments in subsidiaries Investments are included at cost less any amounts written off for impairment totheir value as a result of an impairment review. Share based employee compensation The Group operates equity settled share based compensation plans forremuneration of its employees. All employee services received in exchange for the grant of any share basedcompensation are measured at their fair values. These are indirectly determinedby reference to the share option awarded. Their value is appraised at the grantdate and excludes the impact of any non-market vesting conditions (e.g.profitability or sales growth targets). All share based compensation is ultimately recognised as an expense in profitand loss with a corresponding credit to additional paid in capital, net ofdeferred tax where applicable. If vesting periods or other vesting conditionsapply, the expense is allocated over the vesting period, based on the bestavailable estimate of the number of shares options expected to vest. Non marketvesting conditions are included in assumptions about the number of options thatare expected to become exercisable. Estimates are subsequently revised, if thereis any indication that the number of share options expected to vest differs fromprevious estimates. No adjustment to expense recognised in prior periods is madeif fewer share options ultimately are exercised than originally estimated. Upon exercise of share options, the proceeds received, net of any directlyattributable transaction costs, up to the nominal value of the shares issued arereallocated to share capital with any excess being recorded as additional paidin capital. TRIPLE PLATE JUNCTION PLC Notes to the consolidated financial statements (continued) 2. Loss per share 6 months to 6 months to Year to 30 Sept 30 Sept 31 Mar 2007 2006 2007 £'000 £'000 £'000 Unaudited Unaudited Unaudited Loss for the period (967) (582) (894) ---------- ---------- ---------- Pence per share Pence per share Pence per share Basic and diluted lossper share (1.02) (0.62) (0.95) ---------- ---------- ---------- Shares Shares SharesIssued ordinary sharesat start and end of theperiod 94,414,795 94,414,795 94,414,795 Weighted average numberof shares in issueduring the period 94,414,795 94,414,795 94,414,795 ========== ========== ========== The diluted loss per share does not differ from the basic loss per share as theexercise of share options would have the effect of reducing the loss per shareand is therefore not dilutive under the terms of IAS 33. 3. Intangible assets Deferred exploration costs £'000 1 April 2006 13,353Additions 1,683Impairment - ---------- 30 September 2006 15,036Additions 1,562Impairment - ---------- 31 March 2007 16,598Additions 1,507Impairment (108) ---------- 30 September 2007 17,997 ========== TRIPLE PLATE JUNCTION PLC Notes to the consolidated financial statements (continued) 4. Transition to IFRS From 1 April 2006 the Group has adopted International Financial ReportingStandards (IFRS) in the preparation of its financial statements. The main items contributing to the change in financial information compared withthat reported under UK GAAP as at the transition date are shown below: a) IAS 21 'The effects of changes in foreign exchange rates' Under UK GAAP the Group reported differences in exchange rates on consolidationwithin retained earnings. Under IFRS the Group has claimed the exemption fromretrospective application of IAS 21 and is now required to show all posttransition differences on consolidation as a separate item within equity. b) IFRS 3 Business combinations Business combinations prior to the date of transition to IFRS need not berestated (IFRS 1 'First time adoption of IFRS'). c) IFRS 2 Share based payments Share based payments have been adopted for share options not vested by 1 April2006. Detailed reconciliations between UK GAAP and IFRS of both equity and loss areshown below: TRIPLE PLATE JUNCTION PLC Reconciliation of equity as at 31 March 2006 UK GAAP IFRS £'000 £'000AssetsNon-current assetsProperty, plant and equipment 292 292Intangible assets 13,353 13,353 --------- --------- Total non-current assets 13,645 13,645 Current assetsTrade and other receivables 265 265Cash and cash equivalents 9,284 9,284 --------- --------- Total current assets 9,549 9,549 Current liabilitiesTrade and other payables 394 394 --------- --------- Total current liabilities 394 394 Net current assets 9,155 9,155 --------- --------- Total assets 22,800 22,800 ========= ========= EquityCapital and reservesIssued capital 944 944Share premium 16,969 16,969Option reserve 814 814Retained earnings 4,081 4,081 --------- --------- Total equity before MI 22,808 22,808Minority interest (8) (8) --------- --------- Total equity 22,800 22,800 ========= ========= TRIPLE PLATE JUNCTION PLC Reconciliation of equity as at 30 September 2006 UK GAAP UK GAAP UK GAAP IFRS £'000 £'000 £'000 £'000 As previously Adjustment for Adjusted disclosed timingAssetsNon-current assetsProperty,plant andequipment 577 577 577Intangibleassets 15,036 15,036 15,036 --------- --------- --------- --------- Totalnon-currentassets 15,613 15,613 15,613 Current assetsTrade andotherreceivables 499 (41) 458 458Cash and cashequivalents 6,566 6,566 6,566 --------- --------- --------- --------- Total currentassets 7,065 (41) 7,024 7,024 CurrentliabilitiesTrade andother payables 210 210 210 --------- --------- --------- --------- Total currentliabilities 210 210 210 Net currentassets 6,855 (41) 6,814 6,814 --------- --------- --------- --------- Total assets 22,468 (41) 22,427 22,427 ========= ========= ========= ========= EquityCapital andreservesIssued capital 944 944 944Share premium 16,969 16,969 16,969Option reserve 1,023 1,023 1,023Retainedearnings 3,540 (41) 3,499 3,499 --------- --------- --------- --------- Total equitybefore MI 22,476 (41) 22,435 22,435Minorityinterest (8) (8) (8) --------- --------- --------- --------- Total equity 22,468 (41) 22,427 22,427 ========= ========= ========= ========= The UK GAAP adjustment occurs as the result of timing differences which correctthemselves during the second half of the year. Adjustments under UK GAAP areshown separately here to ensure the reconciliation to IFRS is clearlyidentified. TRIPLE PLATE JUNCTION PLC Reconciliation of equity as at 31 March 2007 UK GAAP IFRS £'000 £'000AssetsNon-current assetsProperty, plant and equipment 1,865 1,865Intangible assets 16,598 16,598 --------- --------- Total non-current assets 18,463 18,463 Current assetsTrade and other receivables 556 556Cash and cash equivalents 3,908 3,908 --------- --------- Total current assets 4,464 4,464 Current liabilitiesTrade and other payables 670 670 --------- --------- Total current liabilities 670 670 Net current assets 3,794 3,794 --------- --------- Total assets 22,257 22,257 ========= ========= EquityCapital and reservesIssued capital 944 944Share premium 16,969 16,969Option reserve 1,165 1,165Retained earnings 3,187 3,187 --------- --------- Total equity before MI 22,265 22,265Minority interest (8) (8) --------- --------- Total equity 22,257 22,257 ========= ========= TRIPLE PLATE JUNCTION PLC Reconciliation of loss for the period ended 30 September 2006 UK GAAP IFRS £'000 £'000 Revenue - - Administration expenses (756) (756) --------- --------- Operating loss (756) (756) Finance income 174 174 --------- --------- Loss before tax (582) (582)Taxation - - --------- --------- Loss for the period (582) (582) ========= ========= Reconciliation of loss for the period ended 31 March 2007 UK GAAP IFRS £'000 £'000 Revenue - - Administration expenses (1,202) (1,202) --------- --------- Operating loss (1,202) (1,202) Finance income 308 308 --------- --------- Loss before tax (894) (894)Taxation - - --------- --------- Loss for the period (894) (894) ========= ========= TRIPLE PLATE JUNCTION PLC 4. Transition to IFRS (continued) Cash flow As a result of the transition to IFRS the following changes have resulted in thecashflow statement. The definition of cash under UK GAAP is narrower than under IAS 7 'Cash flowstatements'. Under IFRS highly liquid investments, readily convertible to aknown amount of cash and with an insignificant risk of a change in value areregarded as cash equivalents. Under UK GAAP payments to acquire property, plant and equipment were classifiedas part of 'Capital expenditure and financial investment' whilst under IFRS suchpayments have been reclassified as part of 'Investing activities'. There are no other material differences between the cashflow statement presentedunder IFRS and that presented under UK GAAP. 5. Contingent liabilities There is a contingent liability at 30 September 2007 resulting from theacquisition of the Larchland Group such that an amount of contingent deferredconsideration estimated at £10.0 million would become payable should either ofthe following events occur: a) any member of the Larchland Group having discovered a proven deposit of at least three million ounces of gold or gold equivalent and such deposit having been proven to be capable of extraction by bulk mining methods or b) a bona fide takeover offer having been made for the entire issued share capital of the company which values the company at no less than £133,333,333. The acquisition occurred prior to the transition date to IFRS and therefore isnot within the scope of IFRS 3 'Business combinations' as the Group has takenadvantage of the optional exemption not to restate acquisitions prior to thedate of transition to IFRS. In the event that either of the above occurs the liability would crystallize andbe settled by further payment in the form of a share issue equal to the lesserof: a) 33,333,333 consideration shares of 1p each issued at the market value at the date of issue or b) such number of consideration shares as will be equal to 7.5% of the number of ordinary shares in issue. The issue of the consideration shares would be an equity transaction. There isno expiry date for the settlement of the consideration shares. The directors consider that, at present, the probability of either of theseevents occurring is negligible and therefore no amount has been provided in theaccounts. The directors review the circumstances surrounding this contingentliability on a regular basis and will make provision in the future if they feelthose circumstances have changed. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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