14th Nov 2006 07:02
European Goldfields Ltd14 November 2006 Immediate Release 14 November 2006 European Goldfields Limited Interim Consolidated Financial Statements (Unaudited) For the Three and Nine Month Periods Ended 30 September 2006 and 2005 Disclosure of auditor review of interim consolidated financial statements The interim consolidated financial statements of the Company for the three- andnine-month periods ended 30 September 2006 and 2005 have not been reviewed bythe auditors of the Company. European Goldfields Limited 30 31 Sept DecemberConsolidated Balance SheetsAs at 30 September 2006 and 31 December 2005(Unaudited - Prepared by Management)(in thousands of US Dollars, except per shareamounts) 2006 2005 $ $Assets Note Unaudited Audited Current assetsCash and cash equivalents 31,809 30,536Accounts receivable, prepaid expenses andsupplies 12,485 5,352Inventory 3 2,110 1,865 --------- --------- 46,404 37,753 --------- --------- Non current assetsPlant and equipment 4 22,655 19,374Deferred exploration and development costs 5Greek production stage mineral properties 14,589 10,129Greek development stage mineral properties 172,820 162,738 --------- --------- 187,409 172,867Romanian development stage mineral properties 31,130 27,843 --------- --------- 218,539 200,710 --------- --------- Restricted investment 6 3,782 3,543 Future tax asset 3,339 5,238 --------- --------- 294,719 266,618 --------- --------- Liabilities Current liabilitiesAccounts payable and accrued liabilities 6,738 3,988 Non current liabilitiesFuture tax liability 7 46,699 43,261Non-controlling interest 17,605 14,239Asset retirement obligation 8 5,776 5,307 --------- --------- 70,080 62,807 --------- ---------Shareholders' equityCapital stock 9 244,570 240,234Contributed surplus 9 8,289 6,197Cumulative translation adjustment (1,819) (12,843)Deficit (33,139) (33,765) --------- --------- 217,901 199,823 --------- --------- --------- --------- 294,719 266,618 --------- --------- The accompanying notes are an integral part of these interim consolidated financial statements. Approved by the Board of Directors (s) Timothy Morgan-Wynne (s) Jeffrey O'LearyTimothy Morgan-Wynne, Director Jeffrey O'Leary, Director European Goldfields 3 months ended 30 Sept. 9 months ended 30 Sept.LimitedConsolidated Statements ofLoss and DeficitFor the three- andnine-month periods ended at30 September 2006 and 2005(Unaudited - Prepared byManagement)(in thousands of US Dollars,except per share amounts) 2006 2005 2006 2005 $ $ $ $ Income Sales 15,211 - 32,568 57 Cost of sales (including amortisation and depletion of $1,918 in 2006) (7,253) - (15,985) - -------- -------- -------- -------- Gross profit 7,958 - 16,583 57 -------- -------- -------- -------- Other income -------- -------- -------- --------Interest income 485 272 1,052 924 -------- -------- -------- -------- ExpensesCorporate administrativeand overhead expenses 643 503 1,645 2,085Equity-based compensationexpense 669 445 2,100 767Foreign exchangeloss/(gain) 67 (27) (151) 901Hellas Gold administrativeand overhead expenses 1,743 973 3,543 2,252Hellas Gold watertreatment expenses 756 1,561 2,142 3,234(non-operating mines)Hellas Gold old adit andequipment maintenance(Stratoni mine) 269 - 2,295 -Accretion of assetretirement obligation 29 - 83 -Amortisation 165 81 586 415 -------- -------- -------- -------- 4,341 3,536 12,243 9,654 -------- -------- -------- -------- -------- -------- -------- --------Profit/(loss) for theperiod before income tax 4,102 (3,264) 5,392 (8,673) Income taxesCurrent taxes - (34) - (34)Future taxes -(reduction)/increase ofdeferred tax asset (1,118) (431) (2,557) 1,339 -------- -------- -------- -------- (1,118) (465) (2,557) 1,305 -------- -------- -------- -------- -------- -------- -------- --------Profit/(loss) for theperiod after income tax 2,984 (3,729) 2,835 (7,368) Non-controlling interest (1,509) 1,003 (2,209) 1,267 -------- -------- -------- --------Profit/(loss) for theperiod 1,475 (2,726) 626 (6,101) Deficit - Beginning ofperiod (34,614) (26,730) (33,765) (23,355) -------- -------- -------- -------- Deficit - End of period (33,139) (29,456) (33,139) (29,456) -------- -------- -------- -------- Earnings/(loss) per share 0.01 (0.02) 0.01 (0.05) Weighted average number ofshares (in thousands) 113,891 112,174 112,679 112,071 The accompanying notes are an integral part of these interim consolidated financial statements. European Goldfields Capital Contributed Cumulative Deficit TotalLimitedConsolidated Stock Surplus Translation $ $Statements of EquityAs at 30 September $ $ Adjustment2006 and 2005(Unaudited - Prepared $by Management)(in thousands of USDollars, except pershare amounts) --------- --------- --------- --------- ---------Balance - 31 December2004 238,420 5,589 8,964 (23,355) 229,618 --------- --------- --------- --------- --------- Equity-basedcompensation expense - 767 - - 767Share optionsexercised 287 (117) - - 170or exchangedMilestone sharesissued 725 (725) - - -as compensationShare issue costs (14) - - - (14)Movement in cumulativetranslation adjustment - - (2,554) - (2,554)Loss for the period - - - (6,101) (6,101) --------- --------- --------- --------- --------- 998 (75) (2,554) (6,101) (7,732) --------- --------- --------- --------- --------- --------- --------- --------- --------- ---------Balance - 30 September2005 239,418 5,514 6,410 (29,456) 221,886 --------- --------- --------- --------- --------- Equity-basedcompensation expense - 1,498 - - 1,498Restricted share unitsvested 815 (815) - - -Share issue costs 1 - - - 1Movement in cumulativetranslation adjustment - - (19,253) - (19,253)Loss for the period - - - (4,309) (4,309) --------- --------- --------- --------- --------- 816 683 (19,253) (4,309) (22,063) --------- --------- --------- --------- --------- --------- --------- --------- --------- ---------Balance - 31 December2005 240,234 6,197 (12,843) (33,765) 199,823 --------- --------- --------- --------- --------- Equity-basedcompensation expense - 3,976 - - 3,976Restricted share unitsvested 435 (435) - - -Share optionsexercised 3,901 (1,449) - - 2,452or exchangedMovement in cumulativetranslation adjustment - - 11,024 - 11,024Loss for the period - - - 626 626 --------- --------- --------- --------- --------- 4,336 2,092 11,024 626 18,078 --------- --------- --------- --------- --------- --------- --------- --------- --------- ---------Balance - 30 September2006 244,570 8,289 (1,819) (33,139) 217,901 --------- --------- --------- --------- --------- The accompanying notes are an integral part of these interim consolidated financial statements. European Goldfields 3 months ended 30 Sept. 9 months ended 30 Sept.Limited ConsolidatedStatements of EquityAs at 30 September 2006and 2005(Unaudited -Prepared byManagement)(in thousandsof US Dollars,except per share amounts) 2006 2005 2006 2005 $ $ $ $ Cash flows from operatingactivitiesProfit/(loss) for theperiod 1,475 (2,726) 626 (6,101)Foreign exchangeloss/(gain) 132 (27) 274 901Amortisation 568 81 1,444 415Equity-based compensationexpense 642 445 2,147 767Accretion of assetretirement obligation 29 - 83 -Future tax assetrecognised 1,118 431 2,557 (1,339)Non-controlling interest 1,509 (1,003) 2,209 (1,267)Depletion of mineralproperties 383 - 1,060 - --------- --------- --------- --------- 5,856 (2,799) 10,400 (6,624) Net changes in non-cashworking capital (4,615) (141) (4,524) (1,478) --------- --------- --------- --------- 1,241 (2,940) 5,876 (8,102) --------- --------- --------- --------- Cash flows from investingactivitiesDeferred exploration anddevelop. costs - Romania (598) (1,068) (2,438) (2,820)Plant and equipment -Greece (1,268) (2,506) (3,435) (6,541)Deferred development costs- Greece (462) (439) (1,937) (1,330)Proceeds from disposal ofequipment - - - 18Purchase of equipment (6) (3) (74) (101)Restricted investment 6 (3,612) 18 (3,612) --------- --------- --------- --------- (2,328) (7,628) (7,866) (14,386) --------- --------- --------- --------- Cash flows from financingactivitiesProceeds from exercise ofshare options - - 2,452 170Share issue costs - - - (14) --------- --------- --------- --------- - - 2,452 156 --------- --------- --------- --------- Effect of foreign currencytranslation on cash (189) 54 811 (3,455) --------- --------- --------- --------- Increase/(decrease) incash and cash equivalents (1,276) (10,514) 1,273 (25,787) Cash and cash equivalents- Beginning of period 33,085 49,980 30,536 65,253 --------- --------- --------- --------- Cash and cash equivalents- End of period 31,809 39,466 31,809 39,466 --------- --------- --------- --------- The accompanying notes are an integral part of these interim consolidated financial statements. 1. Nature of operations European Goldfields Limited (the "Company"), a company incorporated under theYukon Business Corporations Act, is a resource company involved in theacquisition, exploration and development of mineral properties in Greece,Romania and South-East Europe. The Company's common shares are listed on the AIM Market of the London StockExchange and on the Toronto Stock Exchange (TSX) under the symbol "EGU". Greece - The Company holds a 65% interest in Hellas Gold S.A ("Hellas Gold").Hellas Gold owns the three major gold and base metal deposits of Stratoni,Skouries and Olympias in Northern Greece.Hellas Gold commenced production at Stratoni in September 2005 and selling anexisting stockpile of Olympias gold concentrates in July 2006. Hellas Gold isapplying for permits to develop the Skouries and Olympias projects. Romania - The Company owns 80% of the Certej project in Romania. EuropeanGoldfields is completing a feasibility study for submission to the Romaniangovernment in Q1 2007, in support of a permit application to develop theproject. The underlying value of the deferred exploration and development costs formineral properties is dependent upon the existence and economic recovery ofreserves in the future, and the ability to raise long-term financing to completethe development of the properties. For the coming year, the Company believes it has adequate funds available tomeet its corporate and administrative obligations and its planned expenditureson its mineral properties. These interim consolidated financial statements have been prepared on a goingconcern basis, which assumes the Company will be able to realise assets anddischarge liabilities in the normal course of business for the foreseeablefuture. These interim consolidated financial statements do not include theadjustments that would be necessary should the Company be unable to continue asa going concern. 2. Significant accounting policies These interim consolidated financial statements have been prepared on the goingconcern basis in accordance with Canadian GAAP using the same accountingpolicies as those disclosed in Note 4 to the Company's audited consolidatedfinancial statements for the years ended 31 December 2005 and 2004. These interim consolidated financial statements should be read in conjunctionwith the Company's audited consolidated financial statements for the years ended31 December 2005 and 2004. 3. Inventory This balance comprises the following: 30 Sept. 31 December 2006 2005 $ $Ore mined 286 583Metal concentrates 1,175 1,274Material and supplies 649 8 --------- ----------- 2,110 1,865 --------- ----------- 4. Plant and equipment European Goldfields Exploration Vehicles Land and Leasehold TotalLimited Consolidated / office buildings improvementsStatements of Equity equipmentAs at 30 September $ $ $ $ $ 2006 and 2005(Unaudited Prepared by Management)(in thousands of USDollars, except pershare amounts) Cost - 2006 At 31 December2005 5,559 1,134 13,402 223 20,318 Additions 3,476 - - 33 3,509Disposals - - - - -Currencytranslationadjustment 383 65 986 - 1,434 -------- -------- -------- ---------- --------At 30September 2006 9,418 1,199 14,388 256 25,261 -------- -------- -------- ---------- -------- Accumulatedamortisation -2006 At 31 December2005 420 372 119 33 944 Provision forthe period 871 200 471 19 1,561Disposals - - - - -Currencytranslationadjustment 41 27 33 - 101 -------- -------- -------- ---------- --------At 30September 2006 1,332 599 623 52 2,606 -------- -------- -------- ---------- -------- -------- -------- -------- ---------- --------Net book valueat 30September 2006 8,086 600 13,765 204 22,655 -------- -------- -------- ---------- -------- 5. Deferred exploration and development costs Romanian mineral properties: Certej Baita-Craciunes Voia Cainel Total ti $ $ $ $ $ -------- -------- -------- -------- --------Balance - 31 December2005 23,400 2,948 513 982 27,843 -------- -------- -------- -------- -------- Drilling and assaying 588 2 79 1 670Geosciences and tech.consulting 512 26 50 8 596Samplers, miners andsurveying 41 2 5 - 48Project management 528 9 15 - 552Project overhead 1,238 30 71 11 1,350Amortisation 57 6 1 7 71 -------- -------- -------- -------- -------- 2,964 75 221 27 3,287 -------- -------- -------- -------- --------Balance - 30 September2006 26,364 3,023 734 1,009 31,130 -------- -------- -------- -------- -------- The Certej exploitation licence and the Baita-Craciunesti exploration licenceare held by the Company's 80%-owned subsidiary, Deva Gold S.A. ("Deva Gold").Minvest S.A. (a Romanian state owned mining company), together with threeprivate Romanian companies, hold the remaining 20% interest in Deva Gold and theCompany holds the pre-emptive right to acquire such 20% interest. The Company isrequired to fund 100% of all costs related to the exploration and development ofthese properties. As a result, the Company is entitled to the refund of suchcosts (plus interest) out of future cash flows generated byDeva Gold, prior to any dividends being distributed to shareholders. The Voiaand Cainel exploration licences are held by the Company's wholly-ownedsubsidiary, European Goldfields Deva SRL. Individual property spending commitments for each of the Company's Romanianlicences have been met as at 30 September 2006. Greek mineral properties: Stratoni Skouries Olympias Total $ $ $ $ ---------- ---------- ----------- --------Balance - 31 December 2005 14,861 62,624 95,382 172,867 ---------- ---------- ----------- -------- Deferred development costs - 1,763 1,234 2,997Depletion of mineral properties (1,019) - - (1,019)Currency translation adjustment 747 4,684 7,133 12,564 ---------- ---------- ----------- -------- (272) 6,447 8,367 14,542 ---------- ---------- ----------- --------Balance - 30 September 2006 14,589 69,071 103,749 187,409 ---------- ---------- ----------- -------- The Stratoni, Skouries and Olympias properties are held by the Company's65%-owned subsidiary,Hellas Gold. In September 2005, the Stratoni property commenced production. 6. Restricted investment The balance consists of an amount of $3,782 (€3 million) pledged by Hellas Goldto the National Bank of Greece as collateral for a letter of guarantee issued bythe National Bank of Greece to the Greek Ministry of Development to guaranteeHellas Gold's environmental commitments under its mining permit at Stratoni. Theletter of guarantee expires on 31 December 2010. The investment bears a rate ofinterest of Euribor plus 0.8% per annum. 7. Future tax liability The following table reflects future income tax liabilities: 30 Sept. 31 December 2006 2005 $ $ --------- ----------Mineral properties 44,205 41,213Plant and equipment 1,202 1,276Exploration and development expenditure 1,292 772 --------- ---------- 46,699 43,261 --------- ---------- The tax liability arises as a result of the increase in value placed on themineral properties held by Hellas Gold on acquisition by the Company. Thisfuture tax liability will reverse as the corresponding mineral properties areamortised. 8. Asset retirement obligation Management has estimated the total future asset retirement obligation based onthe Company's net ownership interest in the Olympias, Skouries and Stratonimines and facilities. This includes all estimated costs to dismantle, remove,reclaim and abandon the facilities and the estimated time period during whichthese costs will be incurred in the future. The following table reconciles theasset retirement obligations as at 30 September 2006 and 31 December 2005: 30 Sept. 31 December 2006 2005 $ $ --------- ----------Asset retirement obligation - Beginning of period 5,307 5,811Additional obligation - -Currency translation adjustment 387 (771)Accretion expense 82 267 --------- ----------Asset retirement obligation - End of period 5,776 5,307 --------- ---------- As at 30 September 2006, the undiscounted amount of estimated cash flowsrequired to settle the obligation was $6,382 (31 December 2005 - $5,970). Theestimated cash flow has been discounted using a credit adjusted risk free rateof 5.04%. The expected period until settlement is six years. 9. Capital stock Authorised:- Unlimited number of common shares, without par value- Unlimited number of preferred shares, issuable in series, without par value Issued and outstanding (common shares - all fully paid): Number of Amount Shares $ --------- ---------- --------- ----------Balance - 31 December 2005 112,598,708 240,234 --------- ---------- Restricted share units vested 165,000 435Share options exercised or exchanged 1,127,168 3,901Share issue costs - - --------- ---------- 1,292,168 4,336 --------- ---------- --------- ----------Balance - 30 September 2006 113,890,876 244,570 --------- ---------- As at 30 September 2006, the Company had Nil common shares held in escrow or inrespect of which trading restrictions applied. Contributed surplus: 30 Sept. 31 December 2006 2005 $ $Equity-based compensation expense 7,711 5,619Broker warrants 578 578 ---------- ---------- 8,289 6,197 ---------- ---------- 10. Share options and restricted share units Share Option Plan The Company operates a Share Option Plan (together with its predecessor, the"Share Option Plan") authorising the directors to grant options to acquirecommon shares of the Company to the directors, officers, employees andconsultants of the Company and its subsidiaries, on terms that the Board ofDirectors may determine, within the limitations of the Share Option Plan. As at 30 September 2006, the following share options were outstanding: Expiry Date Number of Exercise Options price C$ 2007 50,000 2.50 2009 325,000 2.80 2009 240,000 3.20 2009 250,000 4.20 2009 535,000 3.07 2009 285,000 3.15 2010 954,332 2.00 2010 50,000 2.11 2010 150,000 2.40 2011 100,000 3.25 2011 600,000 3.85 2011 200,000 4.10 --------- --------- 3,739,332 3.00 --------- --------- During the nine-month period ended 30 September 2006, share options weregranted, exercised, exchanged for shares and cancelled as follows: Number of Weighted Options average exercise price C$ --------- ---------Balance - 31 December 2005 4,684,333 2.58 --------- --------- Options granted 900,000 3.84Options exercised (1,084,168) 2.55Options exchanged for shares (91,667) 2.03Options cancelled (669,166) 2.43 --------- ---------Balance - 30 September 2006 3,739,332 3.00 --------- --------- Of the 3,739,332 share options outstanding as at 30 September 2006, 2,522,166were fully vested and had a weighted average exercise price of C$2.81 per share. The weighted average grant date fair value of the 900,000 share options grantedduring the nine-month period ended 30 September 2006 (2005 - 1,401,000) wasC$2.01 (2005 - C$0.97). For outstanding share options which were not fullyvested during the nine-month period ended 30 September 2006, the Companyincurred a total equity-based compensation cost of $1,100 (2005 - $767) of which$878 (2005 - $767) has been recognised as an expense in the income statement and$222 (2005 - Nil) has been capitalised to deferred exploration and developmentcosts. Restricted Share Unit Plan The Company operates a Restricted Share Unit Plan (the "RSU Plan") authorisingthe directors, based on recommendations received from the CompensationCommittee, to grant Restricted Share Units ("RSUs") to designated directors,officers, employees and consultants. The RSUs are "phantom" shares that rise andfall in value based on the value of the Company's common shares and are redeemedfor actual common shares on the vesting dates determined by the Board ofDirectors when the RSUs are granted. The RSUs would typically become 100% vestedupon a change of control of the Company. The maximum number of common shares ofthe Company which may be reserved for issuance for all purposes under the RSUPlan shall not exceed 2.5% of the common shares issued and outstanding from timeto time. As at 30 September 2006, the following RSUs were outstanding: Vesting date Number of Grant date RSUs fair value of underlying shares C$ 31 December 2006 400,000 2.1931 December 2006 * 415,000 4.0431 May 2007 75,000 3.2430 June 2007 60,000 3.241 July 2007 ** 250,000 4.0431 December 2007 350,000 2.1931 December 2007 235,000 4.0431 December 2007 *** 60,000 3.2431 May 2008 75,000 3.24 --------- --------- 1,920,000 3.20 --------- ---------* Of which 150,000 RSUs vest on 31 December 2006 provided certain operationalmilestones are achieved by such date.** Or earlier if certain operational milestones are achieved. Vestingconditional upon such milestones being achieved by 1 July 2007.*** Provided certain operational milestones are achieved by 1 July 2007. During the nine-month period ended 30 September 2006, RSUs were granted, vestedand cancelled as follows: Number of Weighted RSUs average grant date fair value of underlying shares C$ --------- ---------Balance - 31 December 2005 750,000 2.19 --------- --------- RSUs granted 1,335,000 3.75RSUs vested (165,000) 3.00RSUs cancelled - - --------- ---------Balance - 30 September 2006 1,920,000 3.20 --------- --------- The weighted average grant date fair value of underlying shares of the 1,335,000RSUs granted during the nine-month period ended 30 September 2006 (2005 - Nil)was C$3.75 (2005 - Nil). For outstanding RSUs which were not fully vested duringthe nine-month period ended 30 September 2006, the Company incurred a totalequity-based compensation cost of $2,561 (2005 - Nil) of which $1,222 (2005 -Nil) has been recognised as an expense in the income statement and $1,340 (2005- Nil) has been capitalised to deferred exploration and development costs. 11. Supplementary cash flow information 30 Sept. 30 Sept. 2006 2005 $ $ --------- ---------Changes in non-cash operating accounts:Accounts receivable, prepaid expenses and supplies (7,133) (1,633)Accounts payable 2,750 155Inventory (141) - --------- --------- (4,524) (1,478) --------- --------- Supplemental disclosure of non-cash transactions:Equity based compensation issued for non-cash 3,976 767considerationExercise or exchange of share options - Transfer fromcontributed surplus (1,449) (117)to share capitalVesting of restricted share units (435) - 12. Commitments As at 30 September 2006, the Company had remaining spending commitments of$1,242 (2005 - $1,470) over the remaining term of its Voia exploration licencein Romania which expires in March 2007. The Company has spending commitments of $187 per year (plus service charges andvalue added tax) for a term of ten years under the lease for its office inLondon, England, which commenced in April 2004. The rent will be reviewed on thefifth anniversary of the commencement of the term to reflect any increase inrents in the market. In November 2005, Hellas Gold entered into off-take agreements pursuant to whichHellas Gold agreed to sell the following quantities of metal concentratesproduced at the Stratoni mine during the financial years ending 31 December2006, 2007 and 2008: 2006 2007 2008 (dry metric tonnes (dmt)) - ---------------------- --------- --------- Zinc concentrates 42,700 51,000 15,000Lead/silver concentrates 25,000 26,000 20,000 --------- --------- --------- 67,700 77,000 35,000 --------- --------- --------- As at 30 September 2006, 21,926 dmt of zinc concentrates and 10,656 dmt of lead/silver concentrates had been sold on account of the 2006 commitments. 13. Transactions with related parties During the nine-month period ended 30 September 2006, Hellas Gold incurred costsof $12,972 (2005 - $6,684) for management, technical and engineering servicesreceived from a related party, Aktor S.A., a 35% shareholder in Hellas Gold. Asat 30 September 2006, Hellas Gold had accounts payable of $3,139 (2005 - $2,002)to Aktor S.A. These expenses were contracted in the normal course of operationsand are recorded at the exchange amount agreed by the parties. 14. Segmented information The Company has one operating segment: the acquisition, exploration anddevelopment of precious and base metal mineral resources properties located inGreece and Romania. Geographic segmentation of plant and equipment and deferred exploration anddevelopment costs and operating liabilities is as follows: 30 31 December Sept. 2006 2005 $ $ --------- ---------RevenueCanada - -Greece 32,568 1,521Romania - -United Kingdom - - --------- --------- 32,568 1,521 --------- --------- Plant and equipment and deferred exploration anddevelopment costsCanada - -Greece 209,555 191,659Romania 31,294 28,081United Kingdom 345 344 --------- --------- 241,194 220,084 --------- --------- Operating liabilitiesCanada 83 214Greece 6,140 3,144Romania 394 310United Kingdom 121 320 --------- --------- 6,738 3,988 --------- --------- 15. Reconciliation to International Accounting Standards ("IAS") These financial statements have been prepared in accordance with Canadian GAAP. For Canadian GAAP, the Company has accounted for its investment in Hellas Goldfrom the parent entity perspective which, focuses on the parent entityshareholders and their interests in the subsidiary.For International Financial Reporting purposes, the Company would account forits investment in Hellas Gold from the economic entity perspective which viewsboth the controlling and non-controlling shareholders as equity holders in aconsolidated entity that should be viewed as, and accounted for, as a whole. The effect of the differences between Canadian GAAP and IAS on the Company'sconsolidated balance sheets and statements of equity is summarised as follows: 30 Sept. 31 December 2006 2005 $ $ --------- ---------Non current assetsGreek mineral properties under Canadian GAAP 187,409 172,867Adjustment for IAS 92,885 88,234 --------- ---------Greek mineral properties under IAS 280,294 261,101 --------- --------- Non current liabilitiesNon current liabilities under Canadian GAAP 70,080 62,807Adjustment to future tax 23,375 22,069Adjustment for non-controlling interest (17,605) (14,239) --------- ---------Non current liabilities under IAS 75,850 70,637 --------- --------- Shareholders' equityShareholders' equity under Canadian GAAP 217,901 199,823Adjustment to cumulative translation adjustment account 12,613 (26,388)Non-controlling interest under IAS 80,143 72,706Additional depletion 536 41 --------- ---------Shareholders' equity under IAS 311,193 246,182 --------- --------- Other than the differences noted above, management considers that there are nomaterial differences between amounts reported under Canadian GAAP and those thatwould result from the application of IAS. 16. Reclassification of comparative figures Certain comparative figures have been reclassified to conform to the currentyear's presentation. 17. Legal proceedings The Company, from time to time, is involved in various claims, legal proceedingsand complaints arising in the ordinary course of business. There are no legalproceedings to which the Company or any of its subsidiaries is a party or ofwhich any of their properties is the subject that would have a material adverseeffect on the consolidated financial condition or future results of the Company.There are no such proceedings known to the Company to be contemplated. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
EGU.L