27th Feb 2007 18:09
Centamin Egypt Limited27 February 2007 Centamin Egypt Limited ("Centamin" or the "Company") Financial Report for the Half Year Ended 31 December 2006 DIRECTORS' REPORT________________________________________________________________________________ The Directors of Centamin Egypt Limited herewith submit the financial report forthe half-year ended 31 December 2006. In order to comply with the provisions ofthe Corporations Act 2001, the Directors report as follows: DIRECTORS The names of the Directors and officers of the company during or since the endof the half-year are: Mr Sami El-Raghy, ChairmanMr Josef El-Raghy, Managing Director/CEOMr Colin Cowden, Non Executive DirectorMr Gordon B Speechly, Non Executive DirectorDr Thomas Elder, Non Executive DirectorMr H Stuart Bottomley, Non Executive Director COMPANY SECRETARY Mrs Heidi Brown PRINCIPAL ACTIVITIES The principal activity of the consolidated entity during the course of thefinancial year was the exploration for precious and base metals and progresstowards completion of a Definitive Feasibility Study (DFS) into the Sukari GoldProject located in the western desert region of Egypt. There were no significantchanges in the nature of the activities of the consolidated entity during thehalf-year. REVIEW OF OPERATIONS During the half-year, the Company focused on infill and step out drilling of theSukari Gold Project and completion of work on the Definitive Feasibility Study(DFS) into the development of a four million tonne per annum gold processing CILplant at the project's location in Egypt. In August 2006, an upgrade of the resource modelling and grade estimation of theSukari geological resource was completed to JORC standards by independentresource consultants, Hellman & Schofield. The gold resource increased to 142.96Mt @ 1.48 g/t Au for 6.79 Moz Au at a 0.5 g/t cu-off grade. In October 2006, the Company entered into an agreement with a subsidiary ofNewmont Mining Corporation, to acquire the Kori Kollo CIL process plant forUS$11 million. The Kori Kollo plant is located in Bolivia and was built andcommissioned by Minproc Engineers in 1993. The plant is ideally suited to theSukari orebody and key equipment sizing is well matched to the 4-5 mtpaprocessing rate currently envisaged for the Sukari Gold Project. The acquisitionrepresented a key step forward in bringing the Sukari Gold Project intoproduction. It is expected that the Kori Kollo plant will arrive in Egypt in thethird quarter of 2007. In November 2006, another upgrade of the resource modelling and grade estimationof the Sukari geological resource was completed to JORC standards by independentresource consultants, Hellman & Schofield. The gold resource increased to 167.18Mt @ 1.43 g/t Au for 7.70 Moz Au at a 0.5 g/t cu-off grade. Several key personnel appointments were made during the half-year, including anew Project Manager, Robert (Bob) Sinclair, a Construction Manager, Peter Evansand a Chief Financial Officer, Mark Smith. Additional project and constructionroles have and are being recruited for on an on going basis as the companyprepares for construction activity to commence at the Sukari Gold Project in thesecond half of the financial year. In January 2007, the Ministry of Petroleum & Mineral Resources (EMRA) and theInternational Finance Corporation (IFC), the private sector arm of the WorldBank Group, signed an agreement for a technical assistance program to review andreform Egypt's legal and taxation policy framework for private sector mininginvestments. Managed by the IFC's technical assistance unit in the Middle Eastand North Africa, the joint project will undertake a review and define specificpolicy recommendations for the development of the Egyptian mining industry withparticular focus on the legal, fiscal and institutional framework. Egypt'sgovernment wishes to liberalise the country's mining industry to attract moredomestic and foreign investment. The existing policy framework requires furtherimprovements for Egypt to be able to compete internationally for mininginvestment. The move by the IFC and EMRA is seen as very positive for Egypt andthe Company is supportive of this initiative. The Company announced in its Quarterly Report to the Australian Stock Exchangein January 2007 that Westwind Partners, a Canadian financial services andbroking company, had been engaged to work towards a full Toronto Stock Exchange(TSX) listing to complement the existing Alternative Investment Market (AIM) andAustralian Stock Exchange (ASX) listings. The Company believes that the NorthAmerican capital markets will embrace the advanced stage exploration anddevelopment activities of a project the size of Sukari, and as such, the TSXlisting should add value for all shareholders. In early February 2007, a further upgrade of the resource modelling and gradeestimation of the Sukari geological resource was completed to JORC standards byindependent resource consultants, Hellman & Schofield. The gold resourceincreased to 174.20 Mt @ 1.47 g/t Au for 8.26 Moz Au at a 0.5 g/t cu-off grade -a 181% increase (5.32 Moz) since the project drilling recommenced in May 2005and at an impressive cost to shareholders of only on average US$4 per resourceounce. On 19 February 2007, the Company announced that the DFS into the Sukari GoldProject had been successfully completed and following this, the board ofdirectors gave formal approval for the development of the Project. Shareholders are referred to the Company's website (www.centamin.com) forfurther details. AUDITOR'S INDEPENDENCE DECLARATION The auditor's independence declaration is included on page 3 of the half-yearreport. Signed in accordance with a resolution of the directors made pursuant to s306 ofthe Corporations Act 2001. On behalf of the Directors Sami El-RaghyChairman Perth, 27 February 2007 Deloitte Touche Tohmatsu A.C.N. 74 490 121 060 Woodside Plaza Level 14 240 St Georges Terrace Perth WA 6000 GPO Box A46 Perth WA 6837 Australia DX 206 Tel: +61 (0) 8 9365 7000 Fax: +61 (0) 8 9365 7001 www.deloitte.com.au The Board of DirectorsCentamin Egypt Limited57 Kishorn RoadMt Pleasant 6153 27 February 2007 Dear Board Members Centamin Egypt Limited In accordance with section 307C of the Corporations Act 2001, I am pleased toprovide the following declaration of independence to the directors of CentaminEgypt Limited. As lead audit partner for the review of the financial statements of CentaminEgypt Limited for the financial half-year ended 31 December 2006, I declare thatto the best of my knowledge and belief, there have been no contraventions of: (i) the auditor independence requirements of the Corporations Act 2001 in relation to the review; and (ii) any applicable code of professional conduct in relation to the review. Yours sincerely DELOITTE TOUCHE TOHMATSU KEITH JONESPartnerChartered Accountants Deloitte Touche Tohmatsu A.C.N. 74 490 121 060 Woodside Plaza Level 14 240 St Georges Terrace Perth WA 6000 GPO Box A46 Perth WA 6837 Australia DX 206 Tel: +61 (0) 8 9365 7000 Fax: +61 (0) 8 9365 7001 www.deloitte.com.au Independent Auditor's Review Reportto the members of Centamin Egypt Limited Report on the Half-Year Financial Report We have reviewed the accompanying half-year financial report of Centamin EgyptLimited, which comprises the balance sheet as at 31 December 2006, and theincome statement, cash flow statement, statement of changes in equity for thehalf-year ended on that date, selected explanatory notes and the directors'declaration of the consolidated entity comprising the company and the entitiesit controlled at the end of the half-year or from time to time during thehalf-year, as set out on pages 6 to 15. Directors' Responsibility for the Half-Year Financial Report The directors of the company are responsible for the preparation and fairpresentation of the half-year financial report in accordance with AustralianAccounting Standards (including the Australian Accounting Interpretations) andthe Corporations Act 2001. This responsibility includes designing, implementingand maintaining internal control relevant to the preparation and fairpresentation of the half-year financial report that is free from materialmisstatement, whether due to fraud or error; selecting and applying appropriateaccounting policies; and making accounting estimates that are reasonable in thecircumstances. Auditor's Responsibility Our responsibility is to express a conclusion on the half-year financial reportbased on our review. We conducted our review in accordance with AuditingStandard on Review Engagements ASRE 2410 Review of an Interim Financial ReportPerformed by the Independent Auditor of the Entity, in order to state whether,on the basis of the procedures described, we have become aware of any matterthat makes us believe that the financial report is not in accordance with theCorporations Act 2001 including: giving a true and fair view of the consolidatedentity's financial position as at 31 December 2006 and its performance for thehalf-year ended on that date; and complying with Accounting Standard AASB 134Interim Financial Reporting and the Corporations Regulations 2001. As theauditor of Centamin Egypt Limited, ASRE 2410 requires that we comply with theethical requirements relevant to the audit of the annual financial report. A review of a half-year financial report consists of making enquiries, primarilyof persons responsible for financial and accounting matters, and applyinganalytical and other review procedures. A review is substantially less in scopethan an audit conducted in accordance with Australian Auditing Standards andconsequently does not enable us to obtain assurance that we would become awareof all significant matters that might be identified in an audit. Accordingly, wedo not express an audit opinion. Auditor's Independence Declaration In conducting our review, we have complied with the independence requirements ofthe Corporations Act 2001. Conclusion Based on our review, which is not an audit, we have not become aware of anymatter that makes us believe that the half-year financial report of CentaminEgypt Limited is not in accordance with the Corporations Act 2001, including: (a) giving a true and fair view of the consolidated entity's financial position as at 31 December 2006 and of its performance for the half-year ended on that date; and (b) complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001. DELOITTE TOUCHE TOHMATSU KEITH JONESPartnerChartered AccountantsPerth, 27 February 2007 DIRECTORS' DECLARATION________________________________________________________________________________ The directors declare that: a) In the directors' opinion, there are reasonable grounds to believe that the disclosing entity will be able to pay its debts as and when they become due and payable; and b) In the directors' opinion, the attached financial statements and notes thereto are in accordance with the Corporations Act 2001, including compliance with accounting standards and giving a true and fair view of the financial position and performance of the consolidated entity. Signed in accordance with a resolution of the directors made pursuant to s303(5)of the Corporations Act 2001. On behalf of the Directors Sami El-RaghyChairman Perth, 27 February 2007 CONDENSED CONSOLIDATED INCOME STATEMENT for the half-year ended 31 December 2006 ______________________________________________________________________________ Consolidated Note Half Year Ended Half Year Ended 31 Dec 2006 31 Dec 2005 $ $ Interest income 1,296,903 416,095 Profit on sale of asset 530,257 - Salaries, directors fees & (421,697) (264,087)superannuation Foreign exchange loss (124,429) (51,705) Accounting, audit & legal fees (58,899) (13,480) Consulting Fees (110,637) (35,207) Promotional expenses (103,825) (80,739) Other expenses from ordinary activities (179,045) (82,549) Travelling expenses (279,960) (133,032) Listing & share registry fees (73,669) (58,178) Office rent (27,142) (26,265) Telephone expenses (20,459) (15,376) Annual report expenses (6,139) (17,610) Depreciation (13,052) (12,211) Employee option expense (230,172) (158,035) ______________________________ Profit/(Loss) for the period 178,035 (532,379) ______________________________Profit/(Loss) attributable to equity 178,035 (532,379)holders of the parent ============================== Earnings Per ShareFrom continuing and discontinuedoperations:- Basic (cents per share) 0.011 (0.036)- Diluted (cents per share) 0.022 (0.036) From continuing operations:- Basic (cents per share) 0.011 (0.036)- Diluted (cents per share) 0.022 (0.036) The consolidated income statement is to be read in conjunction with the notes toand forming part of the half-yearly financial statements on pages 11 to 15. CONDENSED CONSOLIDATED BALANCE SHEET as at 31 December 2006 Consolidated 31 Dec 2006 30 Jun 2006 Note $ $CURRENT ASSETSCash and cash equivalents 40,014,360 54,493,427Trade and other receivables 512,655 183,004Other 170,951 113,399 ______________________________Total current assets 40,697,966 54,789,830 ______________________________NON-CURRENT ASSETSInvestments accounted for using the 6 4,728 -equity methodProperty, plant and equipment 14,723,596 1,070,101Exploration and evaluation expenditure 49,678,977 41,388,637 ______________________________Total non-current assets 64,407,301 42,458,738 ______________________________Total assets 105,105,267 97,248,568 ______________________________CURRENT LIABILITIESTrade and other payables 7,908,345 861,259Provisions 4 411,875 325,929 ______________________________Total current liabilities 8,320,220 1,187,188 ______________________________NON-CURRENT LIABILITIESTrade and other payables 190,035 205,448 ______________________________Total non-current liabilities 190,035 205,448 ______________________________Total liabilities 8,510,255 1,392,636 ______________________________Net assets 96,595,012 95,855,932 ==============================EQUITYIssued capital 115,674,918 115,344,046Reserves 3,578,822 3,339,601Accumulated losses (22,658,728) (22,827,715) ______________________________Total equity 96,595,012 95,855,932 ============================== The consolidated balance sheet is to be read in conjunction with the notes toand forming part of the half-yearly financial statements on pages 11 to 15. CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY for the half-year ended 31 December 2006________________________________________________________________________________ Issued General Share Accumulated Total Capital Reserve Options Losses Reserve $ $ $ $ $BALANCE AT 1 JUL 2005 68,602,890 2,809,287 63,504 (23,847,593) 47,628,088 Loss for the period - - - (532,379) (532,379) Share options exercised 130,250 - - - 130,250 Cost of share based - - 158,035 - 158,035payments ________________________________________________________ BALANCE AT 31 DEC 2005 68,733,140 2,809,287 221,539 (24,379,972) 47,383,994 Profit for the period - - - 1,543,209 1,543,209 Share options exercised 208,933 - - - 208,933 Cost of share based - - 317,823 - 317,823payments Placement of 75,000,000 46,401,973 - - - 46,401,973shares @ 27.5p (net offees) Transfer to retained - - (9,048) 9,048 -earnings _________________________________________________________BALANCE AT 30 JUN 2006 115,344,046 2,809,287 530,314 (22,827,715) 95,855,932 FX difference on 68 - - - 68Placement in April 2006 Loss for the period - - - 178,035 178,035 Share options exercised 330,804 - - - 330,804 Cost of share based - - 230,173 - 230,173payments Transfer to retained - - 9,048 (9,048) -earnings __________________________________________________________BALANCE AT 31 DEC 2006 115,674,918 2,809,287 769,535 (22,658,728) 96,595,012 __________________________________________________________ The consolidated statement of changes in equity is to be read in conjunctionwith the notes to and forming part of the half-yearly financial statements onpages 11 to 15. CONDENSED CONSOLIDATED CASH FLOW STATEMENT for the half-year ended 31 December 2006 Consolidated Half-year Half-year Ended Ended 31 Dec 2006 31 Dec 2005 $ $ CASH FLOWS FROM OPERATINGACTIVITIESPayments to suppliers and employees (1,392,850) (720,859) ___________________________Net cash used in operating activities (1,392,850) (720,859) ___________________________ CASH FLOWS FROM INVESTINGACTIVITIES Payment for purchases of property, plant & (6,408,254) (248,921)equipmentPayments for exploration (8,603,223) (4,320,204)Interest received 1,296,903 416,095Proceeds from sale of property, plant & 421,982 5,665equipment ___________________________Net cash used in investing activities (13,292,660) (4,147,365) ___________________________ CASH FLOWS FROM FINANCINGACTIVITIES Proceeds from the issues of equity 330,804 130,250securities ___________________________Net cash provided by financing activities 330,804 130,250 ___________________________Net decrease in cash and cash equivalents (14,354,638) (4,737,974) Effects of exchange rate changes on the (124,429) (51,705)balance of cash held in foreign currencies Cash and cash equivalents at the beginning 54,493,427 17,984,972of the period ___________________________Cash and cash equivalents at the end of 40,014,360 13,195,293the period =========================== The consolidated cash flow statement is to be read in conjunction with the notesto and forming part of the half-yearly financial statements on pages 11 to 15. NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 1. Significant accounting policies STATEMENT OF COMPLIANCE The half-year financial report is a general purpose financial report prepared inaccordance with the Corporations Act 2001 and AASB 134 Interim FinancialReporting. Compliance with AASB 134 ensures compliance with InternationalFinance Reporting Standard IAS 34 Interim Financial Reporting. The half-yearfinancial report does not include notes of the type normally included in anannual financial report and should be read in conjunction with the most recentannual financial report. BASIS OF PREPARATION The condensed financial statements have been prepared on the basis of historicalcost, except for the revaluation of certain non-current assets and financialinstruments. Cost is based on the fair values of the consideration given inexchange for assets. All amounts are presented in Australian dollars, unlessotherwise noted. The accounting policies and methods of computation adopted in the preparation ofthe half-year financial report are consistent with those adopted and disclosedin the company's 2006 annual financial report for the financial year ended 30June 2006. The significant policies which have been adopted in the preparation of thesefinancial statements are: (A) ACCOUNTS PAYABLE Trade payables and other accounts payable are recognised when the consolidatedentity becomes obliged to make future payments resulting from the purchase ofgoods and services. (B) DEBT AND EQUITY INSTRUMENTS ISSUED BY THE COMPANY Debt and equity instruments are classified as either liabilities or as equity inaccordance with the substance of the contractual arrangement. (C) EXPLORATION, EVALUATION AND DEVELOPMENT EXPENDITURE Exploration and evaluation expenditure is brought to account at cost. Ongoing costs of acquisition, exploration and evaluation are capitalised inrelation to each separate area of interest and in respect of which: i. such costs are expected to be recouped through successful development and exploitation of the area or alternatively by their sale, or ii. exploration and evaluation activities in the area have not yet reached the stage which permits a reasonable assessment of the existence of economically recoverable reserves, and active and significant operations are continuing. The Directors review the carrying value of each area of interest at balance dateand exploration expenditure which no longer satisfies the above policy iswritten off. All exploration permits are treated as separate areas of interest. Once an area of interest enters a development phase, all capitalisedacquisition, exploration and evaluation expenditure is transferred todevelopment costs within property, plant and equipment. D) FOREIGN CURRENCY All foreign currency transactions during the period have been brought to accountusing the exchange rate in effect at the date of the transaction. Foreigncurrency monetary items at balance date are translated at the exchange rateexisting at that date. Non-monetary assets and liabilities carried at fair value that are denominatedin foreign currencies are translated at the rates prevailing at the date whenthe fair value was determined. All exchange differences are brought to accountin the consolidated income statement in the financial period in which theyarise. (E) GOODS AND SERVICES TAX Revenues, expenses and assets are recognised net of the amount of goods andservices tax (GST), except: i. Where the amount of GST incurred is not recoverable from the taxation authority, it is recognised as part of the cost of acquisition of an asset or as part of an item of expense; or ii. For receivables and payables which are recognised inclusive of GST. The net amount of GST recoverable from, or payable to, the taxation authority isincluded as part of receivables or payables. (F) IMPAIRMENT OF ASSETS At each reporting date, the consolidated entity reviews the carrying amounts ofits tangible and intangible assets to determine whether there is any indicationthat those assets have suffered an impairment loss. If any such indicationexists, the recoverable amount of the asset is estimated in order to determinethe extent of the impairment loss (if any). Where the asset does not generatecash flows that are independent from other assets, the consolidated entityestimates the recoverable amount of the cash-generating unit to which the assetbelongs. Recoverable amount is the higher of fair value less costs to sell and value inuse. In assessing value in use, the estimated future cash flows are discountedto their present value using a pre-tax discount rate that reflects currentmarket assessment of the time value of money and the risks specific to the assetfor which the estimates of future flows have not been adjusted. If the recoverable amount of an asset (or cash-generating unit) is estimated tobe less than its carrying amount, the carrying amount of the asset (cash-generating unit) is reduced to its recoverable amount. Each cash generated unit is determined on an area of interest basis. Where an impairment loss subsequently reverses, the carrying amount of the asset(cash-generating unit) is increased to the revised estimate of its recoverableamount, but only to the extent that the increased carrying amount does notexceed the carrying amount that would have been determined had no impairmentloss been recognised for the asset (cash generating unit) in prior years. (I) LOANS AND RECEIVABLES Trade receivables, loans, and other receivables are recorded at amortised costless impairment. (J) PLANT AND EQUIPMENT Plant and equipment, and equipment under finance lease are stated at cost lessaccumulated depreciation and impairment. Plant and equipment will includecapitalised development expenditure. Cost includes expenditure that is directlyattributable to the acquisition of the item as well as the estimated cost ofabandonment. In the event that settlement of all or part of the purchaseconsideration is deferred, cost is determined by discounting the amounts payablein the future to their present value as at the date of acquisition. Depreciation is provided on property, plant and equipment. Depreciation ofcapitalised development expenditure will be provided on a unit of productionbasis over recoverable reserves, whilst on other fixed assets are calculated ona straight line basis so as to write off the net cost or other re-valued amountof each asset over its expected useful life to its estimated residual value. The estimated useful lives, residual values and depreciation method are reviewedat the end of each annual reporting period. The following estimated useful lives are used in the calculation of depreciation: Plant & Equipment & Office Furniture - 4-10 years Motor Vehicles - 2 -8 years (K) PRINCIPLES OF CONSOLIDATION The consolidated financial statements are prepared by combining the financialstatements of all the entities that comprise the consolidated entity, being thecompany (the parent entity) and its subsidiaries as defined in AccountingStandard AASB 127 Consolidated and Separate Financial Statements. Consistentaccounting policies are employed in the preparation and presentation of theconsolidated financial statements. The consolidated financial statements include the information and results ofeach subsidiary from the date on which the company obtains control and untilsuch time as the company ceases to control such entity. In preparing the consolidated financial statements, all intercompany balancesand transactions, and unrealised profits arising within the consolidated entityare eliminated in full. (L) REVENUE RECOGNITION Interest revenue is recognised on a time proportionate basis that takes intoaccount the effective yield on the financial asset. (M) SHARE-BASED PAYMENTS Employee share options that vested before 1 January 2005 have not been expensed.The shares are recognised when the options are exercised and the proceeds areallocated to share capital. Equity-settled share-based payments granted after 7 November 2002 that wereunvested as of 01 January 2005, are measured at fair value at the date of grant.Fair value is measured under the Black and Scholes model. The fair valuedetermined at the grant date of the equity-settled share-based payments isexpensed on a straight-line basis over the vesting period, based on theconsolidated entity's estimate of shares that will eventually vest. (N) SUPERANNUATION FUND The Company contributes to, but does not participate in, compulsorysuperannuation funds on behalf of the Employees and Directors in respect ofsalaries and directors' fees paid. Contributions are charged against income asthey are made. (O) TAXATION Current tax Current tax is calculated by reference to the amount of income taxes payable orrecoverable in respect of the taxable profit or tax loss for the period. It iscalculated using tax rates and tax laws that have been enacted or substantivelyenacted by reporting date. Current tax for current and prior periods isrecognised as a liability (or asset) to the extent that it is unpaid (orrefundable). Deferred tax Deferred tax is accounted for using the comprehensive balance sheet liabilitymethod in respect of temporary differences arising from differences between thecarrying amount of assets and liabilities in the financial statements and thecorresponding tax base of those items. In principle, deferred tax liabilities are recognised for all taxable temporarydifferences. Deferred tax assets are recognised to the extent that it isprobable that sufficient taxable amounts will be available against whichdeductible temporary differences or unused tax losses and tax offsets can beutilised. However, deferred tax assets and liabilities are not recognised if thetemporary differences giving rise to them arise from the initial recognition ofassets and liabilities (other than as a result of a business combination) whichaffects neither taxable income nor accounting profit. Furthermore, a deferred tax liability is not recognised in relation to taxabletemporary differences arising from goodwill. Deferred tax assets and liabilities are offset when they relate to income taxeslevied by the same taxation authority and the company/consolidated entityintends to settle its current tax assets and liabilities on a net basis. Current and deferred tax for the period Current and deferred tax is recognised as an expense or income in the incomestatement, except when it relates to items credited or debited directly toequity, in which case the deferred tax is also recognised directly in equity, orwhere it arises from the initial accounting for a business combination, in whichcase it is taken into account in the determination of goodwill or excess. 2. Segment reporting Primary reporting - Business SegmentsThe economic entity is engaged in the business of exploration for precious andbase metals only, which is characterised as one business segment only. As theeconomic entity has only one business segment, all the necessary reportingdisclosures are disclosed in the notes in the annual financial statements. Secondary reporting - Geographical SegmentsThe principal activity of the economic entity during the year was theexploration for precious and base metals in Egypt and funding is sourced fromAustralia. 3. Events subsequent to balance date In February 2007 the Company entered into a Sale & Purchase Agreement with ICICTAS, a company registered in Turkey, to buy a second hand heavy fuel oil powergeneration plant located at Isparta in Turkey for US$9,500,000. Payment will bevia a series of progressive payments secured by a letter of credit establishedby the Company for this purchase. An initial non-refundable deposit ofUS$1,900,000 was paid upon entering into the contract. The impact of thistransaction is not included in this financial report. 4. Employee benefits Consolidated 31 December 30 June 2006 2006 $ $ The aggregate employee benefit liabilityrecognised and included in the financialstatements is as follows: Provision for employee benefits: Current 411,875 325,929 ______________________ 5. Related party transactions Mr S El-Raghy and Mr J El-Raghy are also directors and shareholders of El-RaghyKriewaldt Pty Ltd ("El-Raghy Kriewaldt"). El-Raghy Kriewaldt provides officepremises to the Company. All dealings with El-Raghy Kriewaldt are in theordinary course of business and on normal terms and conditions. Rent and officeoutgoings paid to El-Raghy Kriewaldt during the half-year were $13,747 (2005:$13,263). Mr S El-Raghy provides office premises in Alexandria, Egypt to the Company. Alldealings with Mr S El-Raghy are in the ordinary course of business and on normalterms and conditions. Rent and office outgoings paid to Mr S El-Raghy during thehalf-year were $5,930 (2005: $4,787). A director of the Company, Mr C Cowden has an interest as a director andcontrolling shareholder of Cowden Limited, Insurance Brokers. This Companyprovides insurance broking services to the Company. All dealings with thisCompany are in the ordinary course of business and on normal terms andconditions. Premiums paid to Cowden Limited during the half-year were $87,336(2005: $12,792). During the half-year the Company provided funds to and received funding fromsubsidiaries. 6. Investments accounted for using the equity method Consolidated 31 December 31 December 2006 2005 $ $ Investments in jointly controlled entities 4,728 - 7. Issuances of equity securities During the half-year reporting period, Centamin Egypt Limited issued 1,135,000ordinary shares for $330,804 on exercise of 1,135,000 share options issued underthe Employee Option Plan 2002. During the half-year reporting period, Centamin Egypt Limited issued 500,000ordinary shares for $130,250 on exercise of 500,000 share options issued underthe Employee Option Plan 2002. There were no other movements in the ordinary share capital or other issuedshare capital of the company in the current or prior half-year reporting period. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Centamin PLC