TIDMPGL
RNS Number : 1149U
Peninsular Gold Limited
28 November 2013
Peninsular Gold Limited
(the "Company" or "Peninsular") (AIM: PGL)
FINAL RESULTS FOR THE YEAR ENDED 30TH JUNE 2013
and
NOTICE OF ANNUAL GENERAL MEETING
Peninsular Gold Limited, the gold production and exploration
group focused in Malaysia, today releases its Final Results for the
year ended 30(th) June 2013.
Financial
-- Profit after tax (PAT) for the Group of GBP2,312,194 (2012: GBP3,020,411)
-- Earnings per share 2.69p (2012: 3.53p)
-- EBITDA for the year of GBP8.2m (2012: GBP6.9m)
-- GBP22.83m revenue (2012: GBP18.74m) from unhedged gold sales
Operations & Exploration
-- 22,383 ounces of gold produced during the year
-- Estimated 1.29 million tonnes of a mix of tailings and in-situ material processed
-- New mineralised bodies identified at Kekabu
-- Chunchok gold bearing structure confirmed over an estimated
700 metres with potential to be a narrow but high grade deposit
Post Period
-- 5,836 ounces of gold produced for the quarter July to Sept 2013
NOTICE OF ANNUAL GENERAL MEETING
Peninsular announces that it has on 27th November 2013 posted to
shareholders notice of
the Annual General Meeting ('AGM') to be held at First Island
House, Peter Street, St
Helier, Jersey on 20(th) December 2013 at 9:30 a.m. A copy of
the notice of AGM will be
made available on the Company's website.
Enquiries:
Dato' Sri Andrew TY Kam Patrick Watson
Chairman and Chief Executive Finance Director
Peninsular Gold Limited Peninsular Gold Ltd.
Tel: +60 (0)3 2698 8381 Tel: +44 (0)7799 885653
Samantha Harrison / Jen Boorer Colin Rowbury
Nominated Advisor Broker
RFC Ambrian Limited Daniel Stewart & Co. Ltd.
Tel: +44 (0)20 3440 6800 Tel: +44 (0)20 7776 6936
---------------------------
CHAIRMAN'S STATEMENT 2013
Dear Shareholders,
Once again it is my pleasure to update you all on the
performance and progress of the Company over the past year. Despite
seeing a further increase in production, the profit performance for
the year was lower due largely in part to the fall in the gold
price over the period.
The profit after tax for the year was GBP2.3m (2012: GBP3.0m)
whilst gold production increased over the year by 24% to 22,383
ounces (2012: 18,100 ounces).
In September 2012, we were pleased to announce the final legal
resolution of the long running application for a Judicial Review in
relation to the granting of an Environmental Approval for
Peninsular's operating subsidiary (Raub Australian Gold Mining Sdn.
Bhd.( "RAGM")) at the Federal Court in Kuala Lumpur. The Court's
decision was to unanimously dismiss the appellant's case, thereby
exhausting the last avenue of appeal available to them in relation
to the case.
Financial Year ended 30(th) June, 2013
The profit after tax for the Group for the year ended 30(th)
June, 2013 was GBP2,312,194 (2012: GBP3,020,411) from revenues of
GBP22,833,501 (2012: GBP18,743,963) whilst the Group EBITDA for the
year was GBP8.2m (2012: GBP6.9m).
Operations
Production at Raub for the year ended 30(th) June 2013 increased
to 22,383 ounces (2012: 18,100) from the processing of
approximately 1,288,000 tonnes of blended tailings and shallow
in-situ material.
The focus for the Raub project has remained on the improvement
of the front end utilisation and feed arrangements, whilst also
continuing to commission the enlarged circuit. This has enabled us
to increase both the tonnage through the plant and also the gold
produced. The tailings material is principally fed to the plant via
a gravel pump system whilst the in-situ material has been mainly
fed via the monitoring bay. The new mobile crusher unit has also
been utilised to treat some of the harder in-situ ore.
Since the year end, during September 2013, the mining and
processing at Raub has shifted to tailings only as the next
tailings storage facility is prepared.
Gold production since the year end for the quarter ended 30
September 2013, was 5,836 ounces of gold from an estimated 342,000
tonnes of throughput.
Exploration
During the last year, exploration activity has been principally
comprised of the ongoing regional and detailed exploration in the
Northern Licence Areas, particularly in the promising Chunchok and
Kekabu mineralised zones.
At Kekabu, several mineralized bodies similar in nature and size
to the Tersang deposits were identified. They stretched over a
distance of approximately 5km to the North and along the same
mineralized strike as Tersang.
At Chunchok, located South of Tersang, the main north-south
brecciated structure hosts silicified zones with sulphides and
extends over an estimated 700 metres. The field work and sampling
at Chunchok has confirmed its potential as a narrow but high grade
deposit, complementary to Tersang and the recent Kekabu
discoveries.
Reserve and Resource Inventory
Project JORC Project Tonnes Grade Contained
Area Classification (g/t Troy
Au) Ounces
---------------------- ------------ ---------- ------ ----------
Measured
RAUB Resource East Lode 1,338,000 1.43 62,000
--------- ---------------------- ------------ ---------- ------ ----------
Indicated
RAUB Resource East Lode 1,666,000 1.38 74,000
--------- ---------------------- ------------ ---------- ------ ----------
Measured
+
RAUB Indicated Resources East Lode 3,004,000 1.40 136,000
--------- ---------------------- ------------ ---------- ------ ----------
RAUB Inferred Resource East Lode 1,883,000 1.40 82,000
--------- ---------------------- ------------ ---------- ------ ----------
Measured, Indicated
and Total
RAUB Inferred Resources East Lode 4,887,000 1.39 218,000
--------- ---------------------- ------------ ---------- ------ ----------
RAUB Proven Reserves Tailings 8,600,000 0.73 202,000
--------- ---------------------- ------------ ---------- ------ ----------
RAUB Indicated Resource Tailings 1,600,000 0.74 37,200
--------- ---------------------- ------------ ---------- ------ ----------
TERSANG Indicated Resource Tersang 1,185,000 0.73 27,800
------------------------ --------- ---------- ----- --------
TERSANG Inferred Resource Tersang 4,058,000 0.71 92,200
--------- ------------------------ --------- ---------- ----- --------
Indicated and Inferred
TERSANG Resources Tersang 5,243,000 0.71 120,000
--------- ------------------------ --------- ---------- ----- --------
Notes:
Stated as prior to production commencing in February 2009. Total
production to the end of September 2013 was 83,145 troy ounces, all
from the Raub project.
Values have been rounded to two or three significant figures to
reflect the relative estimation precision of each resource
classification. This rounding has also been applied to summations
of raw values.
The information related to the current reserve and resource
inventory presented in the above table has all been previously
announced to the market. The relevant competent persons for the
different projects are as follows:
1. The Raub (East Lode) project resources were compiled in May
2008 by Kevin Lowe, who is a member of the Australasian Institute
Of Mining and Metallurgy and a full-time employee of Snowden Mining
Industry Consultants, in accordance with the Australasian Code for
Reporting Exploration Results, Mineral Resources and Ore Reserves
known as the JORC Code (JORC, 2004).
2. The Raub (Tailings) project was compiled in September 2007
and June 2008 by Bryan (Mort) Cowan, who is a member of the
Australasian Institute of Mining and Metallurgy, in accordance with
the Australasian Code for Reporting Exploration Results, Mineral
Resources and Ore Reserves known as the JORC Code (JORC, 2004).
3. The Tersang project resources were reported in June 2012 by
Remi Bosc of Arethuse Geology Sarl, who is a Member of the European
Federation of Geologists and an independent consultant in
accordance with the Australasian Code for Reporting Exploration
Results, Mineral Resources and Ore Reserves known as the JORC Code
(JORC 2004).
Corporate Social Responsibility
We have continued to develop our engagement and communication
activities with local stakeholders via numerous visits to the Raub
site of a range of local stakeholders. In addition we have
ourselves gone out to visit, engage and provide assistance where we
can with local communities. We recognise this work as an essential
part of being a good corporate citizen of the broader Raub district
community.
Strategy and Outlook
The further development of the Raub mine and operation in terms
of its production levels and efficiency remain core to our
operational plans. We are currently also focused on improving
availability, utilisation, cost effectiveness and throughput of the
Raub project.
However, aside from Raub we are also excited about the future
opportunities being promised by the new and interesting areas of
gold mineralisation being found and delineated in the northern
licence areas along the Chunchok, Tersang, Kekabu and Tenggellan
trend.
Dato' Sri Andrew Tai Yeow Kam JP
Chairman and Chief Executive
Report of the Directors
For the Year Ended 30(th) June 2013
The directors' present their report and the audited financial
statements for the year ended 30(th) June 2013.
Principal Activities
The principal activities of the Company and its subsidiaries
during the year were the exploration and development of gold
deposits and the production of gold dorébars in the state of Pahang
in Peninsular Malaysia. These activities are performed via the
Company's two wholly owned subsidiaries, Raub Australian Gold
Mining Sdn. Bhd. ("RAGM") and S.E.R.E.M. Malaysia Sdn. Bhd.
("SEREM").
A detailed review of the Group's operations is included in the
Chairman's Review on pages 1-3.
Results and Dividends
The Consolidated Statement of Comprehensive Income for the year
is set out on page 12. The Group made a profit after tax of
GBP2,312,194 (2012: GBP3,020,411). The directors do not recommend
the payment of a dividend.
Directors
The names of the directors who held office during the year and
to date were:
Dato' Sri Andrew Tai Yeow Kam
Dato' Mohamed Moiz Bin JM Ali Moiz
Dr. Yves Fernand Marcel Cheze
Mr. Timothy Patrick Watson
Directors' Biographies
Dato' Sri Andrew Tai Yeow Kam JP
Chairman and Chief Executive
Dato' Sri Andrew Tai Yeow Kam (age 51) is a British educated,
Malaysian citizen with a law degree from the University of
Buckingham. He is an advocate and solicitor of the High Court of
Malaya having been admitted to the Malaysian Bar in 1988. His
business and entrepreneurial experience, in addition to his long
involvement in gold mining, has included the development and
completion of a large township, development of an orchard project,
and the successful management, over many years, of a major palm oil
mill and plantation.
Dato' Mohamed Moiz Bin JM Ali Moiz
Non Executive Director
Dato' Mohamed Moiz Bin JM Ali Moiz (age 53), is a Malaysian
citizen. He has a degree in Business Administration and
International Finance, graduating in 1985. He worked for Timbco
Sdn. Bhd., a company involved in timber trading, processing and
forestry management as a Project Manager from 1985 to 1986. In 1987
he was appointed CEO of the Tradium Group of companies, which have
interests in property development, fashion retailing,
manufacturing, food and beverage and equity investments. In 1999,
he was appointed Chief Executive Officer of Effective Capital Sdn.
Bhd., a company which successfully undertook the migration of the
central limit order book of securities traded in an over the
counter market in Singapore, from the Central Depository (Pte) Ltd
to the Kuala Lumpur Stock Exchange in June 2000. Currently, he is
the non-independent non-executive chairman of Bandar Raya
Developments Berhad. He also sits on the Boards of Mieco Chipboard
Berhad and several other private companies.
Dr. Yves Fernand Marcel Cheze (Ph.D, B.Sc. and M.Sc.)
Non Executive Director
Dr. Yves Cheze (age 63), a French citizen, studied geology at
the University of Clermont-Ferrand and has over 30 years' worldwide
experience in most aspects of mineral exploration. Most of his
experience has been gained in Western and Eastern Africa,
South-East Asia (including Irian Jaya, Indonesia and over ten years
in Malaysia), Papua New Guinea and both North and South America.
Whilst with the French company BRGM, he was responsible for large
international exploration projects that led to the discovery of
major gold deposits, including the Ariab Gold Belt in Sudan; he was
also Project Manager for feasibility study of a 50 million Euro
programme in Papua New Guinea, for the European Commission. Dr.
Cheze resigned from BRGM in 2001 and subsequently set up his own
geological consulting company in Malaysia where he now lives.
Timothy Patrick Watson (BSc.(Hons.), A.R.S.M., A.C.A.)
Finance Director
Mr. Watson (age 50) is a British citizen who started his career
working with the Anglo American Corporation of South Africa before
attending the Royal School of Mines at Imperial College to read
mining engineering. He graduated in 1985 and returned to Anglo in
South Africa, to work in the gold division before later changing
career to become a Chartered Accountant with KPMG in the UK. His
mining career focused on deep level gold mining operations covering
both production and development.
As a Chartered Accountant he has over sixteen years' experience
in financial and business management in senior roles with KPMG,
Nationwide Building Society, PricewaterhouseCoopers and LogicaCMG
where he headed their UK Consultancy business. His experience
crosses a range of industries, principally focused on advising
finance and business executives in the area of financial and cost
management. He knows Malaysia and South East Asia well, having
previously lived there for many years.
Directors and Directors' Interests
The directors and their families have the following interests in
the shares of the Company:
1(st) July 2012 30(th) June 2013
Ordinary Shares Ordinary Shares
of GBPNil par value of GBPNil par value
Dato' Sri Andrew Tai Yeow - -
Kam
Dato' Mohamed Moiz Bin
JM Ali Moiz 4,500,000 4,500,000
Dr. Yves Fernand Marcel
Cheze 50,000 50,000
Mr. Timothy Patrick Watson - -
Indirect Interests
Dato' Sri Andrew Tai Yeow
Kam (1) 21,638,869 21,638,869
Dato' Mohamed Moiz Bin - -
JM Ali Moiz
Dr. Yves Fernand Marcel - -
Cheze
Mr. Timothy Patrick Watson - -
(1) Dato' Sri Andrew Tai Yeow Kam's indirect interest in
Peninsular Gold Limited is via his ownership of 99.9% of the shares
of Akay Holdings Sdn. Bhd. and 70% of the shares of Akay Venture
Sdn. Bhd. which owned 15.03% and 14.51% (2012: 15.03% and 14.51%)
of Peninsular Gold Limited respectively at 30(th) June 2013.
At 27(th) November 2013, the Company was aware of the following
holdings of more than 3% of the issued share capital of the
Company:
Number of %
shares
Akay Holdings Sdn. Bhd. 12,919,840 15.0
Akay Venture Sdn. Bhd. 12,474,213 14.5
Baker Steel Capital Managers LLP 7,616,000 8.9
Dato' Mohamed Moiz Bin JM Ali Moiz 4,500,000 5.2
Matterhorn Investments Management (Asia) 4,000,000 4.7
Limited
Phoenix Gold Fund 3,450,000 4.0
Granite Peak Ltd. 2,920,500 3.4
The Company is not resident in the United Kingdom and is,
therefore, not a close company within the meaning of the United
Kingdom Corporation Tax Act 2010.
By order of the Board on 27(th) November 2013
T. P. WATSON
Finance Director
Statement of Directors' Responsibilities
The directors are responsible for preparing the Directors'
Report and the financial statements in accordance with applicable
law and regulations.
Jersey Company law requires the directors to prepare financial
statements for each financial year. Under that law the directors
have elected to prepare the financial statements in accordance with
International Financial Reporting Standards (IFRS) as adopted by
the European Union and applicable law. Under company law, the
directors must prepare financial statements that give a true and
fair view of the state of affairs of the Group and of the profit or
loss of the Group for that period. In preparing these financial
statements, the directors are required to:
-- select suitable accounting policies and then apply them consistently;
-- make judgements and accounting estimates that are reasonable and prudent;
-- state whether the financial statements have been prepared in
accordance with IFRS as adopted by the European Union; and
-- prepared the financial statements on the going concern basis
unless it is inappropriate to presume that the Company and Group
will continue in business.
The directors are responsible for keeping proper accounting
records that are sufficient to show and explain the Company's
transactions and disclose with reasonable accuracy at any time the
financial position of the Company and enable them to ensure that
the financial statements comply with the Companies (Jersey) Law
1991. They are also responsible for safeguarding the assets of the
Company and hence for taking reasonable steps for the prevention
and detection of fraud and other irregularities.
The directors are responsible for the maintenance and integrity
of the corporate and financial information included on the
Company's website.
Independent Auditors' Report to the Members of Peninsular Gold
Limited
We have audited the Group and Parent Company financial
statements ("the financial statements") of Peninsular Gold Limited
for the year ended 30(th) June 2013 which comprise the Consolidated
and Company Statement of Financial Position, the Consolidated and
Company Statement of Comprehensive Income, the Consolidated and
Company Statement of Changes in Equity, the Consolidated and
Company Statement of Cash Flows and the notes 1 to 26. The
financial reporting framework that has been applied in their
preparation is applicable law and International Financial Reporting
Standards ("IFRSs") as adopted by the European Union.
This report is made solely to the Company's members as a body,
in accordance with Article 113A of the Companies (Jersey) Law 1991.
Our audit work has been undertaken so that we might state to the
Company's members those matters we are required to state to them in
an auditors' report and for no other purpose. To the fullest extent
permitted by law, we do not accept or assume responsibility to
anyone other than the Company and the Company's members as a body,
for our audit work, for this report, or for the opinions we have
formed.
Respective responsibilities of directors and auditors
As explained more fully in the Directors' Responsibilities
Statement on page 8 the directors are responsible for the
preparation of the financial statements and for being satisfied
that they give a true and fair view. Our responsibility is to audit
and express an opinion on the financial statements in accordance
with applicable law and International Standards on Auditing (UK and
Ireland). Those standards require us to comply with the Auditing
Practices Board's (APB's) Ethical Standards for Auditors.
Scope of the audit of the financial statements
An audit involves obtaining evidence about the amounts and
disclosures in the financial statements sufficient to give
reasonable assurance that the financial statements are free from
material misstatement, whether caused by fraud or error. This
includes an assessment of: whether the accounting policies are
appropriate to the Group's and the Parent Company's circumstances
and have been consistently applied and adequately disclosed; the
reasonableness of significant accounting estimates made by the
directors; and the overall presentation of the financial
statements. In addition, we read all the financial and
non-financial information in the annual report to identify material
inconsistencies with the audited financial statements. If we become
aware of any apparent material misstatements or inconsistencies we
consider the implications for our report.
Opinion on financial statements
In our opinion the financial statements:
-- give a true and fair view of the state of the Group's and
Parent Company's affairs as at 30(th) June 2013 and of the Group's
profit and the Parent Company's loss for the year then ended;
-- have been properly prepared in accordance with IFRSs as
adopted by the European Union; and
-- have been properly prepared in accordance with the
requirements of Companies (Jersey) Law 1991.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters
where the Companies (Jersey) Law 1991 requires us to report to you
if, in our opinion:
-- proper accounting records have not been kept, or returns
adequate for our audit have not been received from branches not
visited by us; or
-- the financial statements are not in agreement with the accounting records and returns; or
-- we have not received all the information and explanations we require for our audit
Michael Kotsapas
For and on behalf of Moore Stephens LLP
Registered Auditors
Chartered Accountants
150 Aldersgate Street
London
EC1A 4AB
Dated:
Consolidated Statement of Financial Position at 30(th) June
2013
(Expressed in United Kingdom Sterling)
Note 30(th) June 30(th) June
2013 2012
GBP GBP
Non-Current Assets
Property, plant and equipment 4 48,699,884 44,906,898
Other intangible assets 5 14,411,270 15,265,137
Mining development expenditure 6 7,946,387 8,309,636
Total Non-Current Assets 71,057,541 68,481,671
Current Assets
Inventories 7 4,335,152 2,264,566
Other receivables 8 1,169,982 1,035,807
Short-term investments 9 157,873 107,360
Cash and cash equivalents 9 264,659 180,238
Total Current Assets 5,927,666 3,587,971
Current Liabilities
Trade and other payables 10 (10,763,097) (7,236,192)
(15,512,869)
Borrowings - current portion 11 (3,427,937) (231,909)
Current tax liability (297,334)
Total Current Liabilities (14,488,368) (22,980,970)
Net Current Liabilities (8,560,702) (19,392,999)
Total Assets Less Current
Liabilities 62,496,839 49,088,672
Non-Current Liabilities
Trade and other payables 10 (480,000) (420,000)
Long-term borrowings 11 (20,751,921) (10,782,752)
Provision for restoration 12 (822,986) -
Total Non-Current Liabilities (22,054,907) (11,202,752)
Net Assets 40,441,932 37,885,920
------------- ---------------
Shareholders' Equity
Share capital 13 - -
Stated capital account 13 40,897,957 40,897,957
Reserves (456,025) (3,012,037)
Total Equity 40,441,932 37,885,920
------------- ---------------
The financial statements were approved and authorised for issue
by the Board on 27(th) November 2013
and signed on its behalf by
T. P. WATSON
Finance Director
Company Statement of Financial Position at 30(th) June 2013
(Expressed in United Kingdom Sterling)
Note 30(th) June 30(th) June
2013 2012
GBP GBP
Non-Current Assets
Property, plant and equipment 305 457
Investment in subsidiaries 3 19,183,185 19,141,581
Total Non-Current Assets 19,183,490 19,142,038
Current Assets
Other receivables 8 16,430,361 16,430,361
Cash and cash equivalents 9 60,302 141,297
Total Current Assets 16,490,663 16,571,658
Current Liabilities
Trade and other payables 10 (3,876,329) (3,157,103)
Total Current Liabilities (3,876,329) (3,157,103)
Net Current Assets 12,614,334 13,414,555
Total Assets Less Current
Liabilities 31,797,824 32,556,593
Non-Current Liabilities
Trade and other payables 10 (480,000) (420,000)
Long-term borrowings 11 (803,168) (761,564)
Total Non-Current Liabilities (1,283,168) (1,181,564)
Net Assets 30,514,656 31,375,029
------------- ------------
Shareholders' Equity
Share capital 13 - -
Stated capital account 13 40,897,957 40,897,957
Reserves (10,383,301) (9,522,928)
Total Equity 30,514,656 31,375,029
------------- ------------
The financial statements were approved and authorised for issue
by the Board on 27(th) November 2013
and signed on its behalf by
T. P. WATSON
Finance Director
ConsolidatedStatement of Comprehensive Income
For the Year ended 30(th) June 2013
(Expressed in United Kingdom Sterling)
Note 30(th) June 30(th) June
2013 2012
GBP GBP
Revenue 2(m) 22,833,501 18,743,963
Cost of sales (12,603,799) (8,847,209)
Gross Profit 10,229,702 9,896,754
Other operating expenses (1,563,781) (1,364,196)
Administrative expenses (3,923,266) (3,404,443)
Profit from Operations 15 4,742,655 5,128,115
Financial income 17 5,660 3,879
Finance costs 17 (2,544,705) (1,410,430)
Gain / (loss) on foreign exchange 345,298 (377,376)
Other income 1,829 2,709
Profit before Taxation 2,550,737 3,346,897
Income tax expense 18 (238,543) (326,486)
Profit for the Year 2,312,194 3,020,411
Other Comprehensive Income:
Exchange difference arising
on
translation of foreign operations 243,818 (181,282)
Other Comprehensive Income
for the year 243,818 (181,282)
------------------------------- ------------
Total Comprehensive Income
for the Year 2,556,012 2,839,129
=============================== ============
Other Comprehensive Income
attributable to shareholders
of the Company 2,556,012 2,839,129
=============================== ============
Profit attributable to shareholders
of the Company 20 2,312,194 3,020,411
Basic earnings per share 20 2.69p 3.53p
=============================== ============
Diluted earnings per share 20 2.69p 3.53p
=============================== ============
Consolidated Statement of Changes in Equity
For the Year ended 30(th) June 2013
(Expressed in United Kingdom Sterling)
Stated
Share capital Accumulated Capital Translation
capital account losses reserve reserve Total
GBP GBP GBP GBP GBP GBP
At 1(st) July
2011 - 40,792,957 (8,979,120) 456,303 2,671,651 34,941,791
Profit for the
year - - 3,020,411 - - 3,020,411
Other Comprehensive
Income:
Exchange difference
arising on translation
of foreign operations - - - - (181,282) (181,282)
--------- ----------- ------------- -------- ------------- -----------
Total Comprehensive
Income for the
Year - - 3,020,411 - (181,282) 2,839,129
--------- ----------- ------------- -------- ------------- -----------
Placing and
subscription
of new ordinary
shares
(Note 13) - 105,000 - - - 105,000
At 30(th) June
2012 - 40,897,957 (5,958,709) 456,303 2,490,369 37,885,920
--------- ----------- ------------- -------- ------------- -----------
Profit for the
year - - 2,312,194 - - 2,312,194
Other Comprehensive
Income:
Exchange difference
arising on translation
of foreign operations - - - - 243,818 243,818
--- ----------- ------------ -------- ----------- -----------
Total Comprehensive
Income for the
Year - - 2,312,194 - 243,818 2,556,012
--- ----------- ------------ -------- ----------- -----------
At 30(th) June
2013 - 40,897,957 (3,646,515) 456,303 2,734,187 40,441,932
=== =========== ============ ======== =========== ===========
Company Statement of Comprehensive Income
For the Year ended 30(th) June 2013
(Expressed in United Kingdom Sterling)
Note 30(th) June 30(th) June
2013 2012
GBP GBP
Administrative expenses (800,257) (821,843)
Loss from Operations 15 (800,257) (821,843)
Financial income 17 32 64
Finance costs 17 (60,336) (60,650)
Profit on foreign exchange 188 208
Loss before Taxation (860,373) (882,221)
Income tax expense 18 - -
Loss and Total Comprehensive
Expense for the Year (860,373) (882,221)
------------ ------------
Company Statement of Changes in Equity
For the Year ended 30(th) June 2013
(Expressed in United Kingdom Sterling)
Share Stated capital Accumulated Capital
capital Account losses reserve Total
GBP GBP GBP GBP GBP
At 1(st) July
2011 - 40,792,957 (9,097,010) 456,303 32,152,250
Loss and Total
Comprehensive
Expense for the
Year - - (882,221) - (882,221)
Placing and subscription
of new ordinary
shares (Note 13) - 105,000 - - 105,000
At 30(th) June
2012 - 40,897,957 (9,979,231) 456,303 31,375,029
Loss and Total
Comprehensive
Expense for the
Year - - (860,373) - (860,373)
At 30(th) June
2013 - 40,897,957 (10,839,604) 456,303 30,514,656
========= ==================== ============== ========== ===================
Consolidated Statement of Cash Flows
For the Year ended 30(th) June 2013
(Expressed in United Kingdom Sterling)
30(th) June 30(th) June
Note 2013 2012
GBP GBP
Operating Activities
Profit before taxation 2,550,737 3,346,897
Adjustments for:
Depreciation of property, plant
and equipment 4 2,043,468 1,483,368
Profit on disposal of fixed assets 15 (12,812) (5,790)
Amortisation of mining development
expenditure 6 736,833 465,838
Amortisation of other intangible
assets 5 853,867 585,445
Unwinding of discount on restoration 12,
provision 17 25,287 -
Interest income 17 (5,660) (3,879)
Preference dividend 17 60,000 60,000
(Gain) / Loss on foreign exchange (345,298) 377,376
Finance costs 17 2,459,418 1,350,430
Cash inflow before working capital
changes 8,365,840 7,659,685
Taxation paid (173,119) (128,228)
Changes in working capital:
(Increase)/decrease in other receivables (134,174) 699,516
Increase in inventories (2,070,586) (1,095,378)
Increase in trade and other payables 3,786,752 2,498,705
Cash inflow from operating activities 9,774,713 9,634,300
Investing Activities
Purchase of property, plant and 4,
equipment 26 (3,733,208) (11,547,077)
Interest received 5,660 3,879
Proceeds from disposal of fixed
assets 111,307 6,094
Mining development expenditure 6 (153,681) (1,431,891)
Placement of fixed deposit 9 (50,513) (9,500)
Cash outflow from investing activities (3,820,435) (12,978,495)
Financing Activities
Proceeds from issue of ordinary
shares 13 - 105,000
Proceeds from bank loans 11 25,213,083 10,495,733
Repayment of hire purchase obligations (69,528) (71,601)
Repayment of bank loans (27,469,651) (7,905,626)
Finance costs paid (2,355,658) (1,061,526)
Cash (outflow)/inflow from financing
activities (4,681,754) 1,561,980
------------- -------------
Net increase/(decrease) in cash
and cash equivalents 1,272,524 (1,782,215)
Foreign exchange translation reserve (1,188,103) 1,220,692
Cash and cash equivalents at beginning
of year 180,238 741,761
Cash and cash equivalents at end
of year 9 264,659 180,238
------------- -------------
Company Statement of Cash Flows
For the Year ended 30(th) June 2013
(Expressed in United Kingdom Sterling)
Note 30(th) June 30(th) June
2013 2012
GBP GBP
Operating Activities
Loss before taxation (860,373) (882,221)
Adjustments for:
Depreciation of property, plant
and equipment 152 153
Interest income 17 (32) (64)
Preference dividends 17 60,000 60,000
Finance costs 17 336 650
Cash outflow before working capital
changes (799,917) (821,482)
Changes in working capital
Decrease in other receivables - 55
Increase in trade and other payables 55,512 288,991
------------ ------------
Cash outflow from operating activities (744,405) (532,436)
Investing Activities
Interest received 32 64
Repayment from subsidiaries 663,714 235,623
Cash inflow from investing activities 663,746 235,687
Financing Activities
Proceeds from issue of ordinary
shares 13 - 105,000
Finance costs paid (336) (650)
------------ ------------
Cash (outflow)/inflow from financing
activities (336) 104,350
------------ ------------
Net decrease in cash and cash
equivalents (80,995) (192,399)
Cash and cash equivalents at beginning
of year 141,297 333,696
------------ ------------
Cash and cash equivalents at end
of year 9 60,302 141,297
------------ ------------
Notes to the Financial Statements for the Year ended 30(th) June
2013
1. Group and Company Information
Peninsular Gold Limited is a limited liability Company,
incorporated under the laws of Jersey on 8(th) April 2005. The
Company was quoted on AIM from 23(rd) June 2005. Its registered
office is First Island House, Peter Street, St. Helier, Jersey. The
Company's place of domicile is Jersey.
The Group is engaged in the exploration, development and mining
of gold deposits. All of the Group's activities are undertaken in
the state of Pahang, Malaysia.
On 17(th) June 2005 under the terms of share swap agreements,
the Company acquired the whole of the issued share capital of Raub
Australian Gold Mining Sdn. Bhd. ("RAGM") and S.E.R.E.M Malaysia
Sdn. Bhd. ("SEREM").
The subsidiaries were acquired via share swap agreements, which
valued the Peninsular Gold Limited shares issued as consideration
at 50 pence per share. This valuation was provided by an
independent valuer and was based on the gold resources and
exploration grounds held by RAGM and SEREM.
2. Significant Accounting Policies
(a) Basis of preparation
The financial statements have been prepared in accordance with
applicable International Financial Reporting Standards, as adopted
by the European Union ("IFRS").
The financial statements have been prepared on the going concern
basis. At 30(th) June 2013 the Group had net current liabilities of
GBP8.6million (2012: GBP19.4million). Of this total, GBP3.4million
(2012: GBP15.5 million) represents the current portion of bank
loans repayable within one year. Current liabilities are expected
to be settled out of operational cashflows derived from the ramp-up
of production and an increase in gold sales in the coming year.
On 27(th) September 2012, the Group obtained an Islamic
financing facility for up to RM124 million, from its existing
financier Bank Kerjasama Rakyat Malaysia Berhad, which was used to
completely refinance the Group's three previously existing Islamic
financing facilities with the bank. The new facility is repayable
over 72 months from the date of first drawdown.
On 7(th) December 2012, the Group obtained an Islamic financing
facility of USD6 million from its existing financier Alkhair
International Bank Berhad, which was used to refinance its
previously existing Islamic financing facility with the bank. The
new facility is repayable over 48 months from the date of first
drawdown.
The refinancing of the above facilities has enabled the Group to
reduce the current liability portion of bank borrowings from
GBP15,450,954 at 30(th) June 2012 to GBP3,382,503 at 30(th) June
2013 (Note 11). The Company is confident of being able to raise
additional funds, if required, to provide the Group with sufficient
resources to meet all obligations as they fall due within the next
12 months.
The Group's accounting policies have been consistently applied
to all the periods presented. The principal policies are set out in
notes 2(b) to 2(u) below.
(b) Basis of consolidation
The Group financial statements include the assets, liabilities
and results of Peninsular Gold Limited together with its
subsidiaries, RAGM and SEREM from the date of acquisition.
All intercompany transactions and balances within the Group are
eliminated in the preparation of the consolidated financial
statements. The financial statements of subsidiaries acquired are
consolidated in the financial statements of the Group from the date
that control commences until the date control ceases, using the
purchase method of accounting.
(c) Property, plant and equipment
Property, plant and equipment is stated at cost less accumulated
depreciation and impairment losses. Depreciation is provided on a
straight-line basis at rates calculated to write off the cost less
estimated residual value of each asset over its expected useful
life, as follows:
Plant and equipment 20%
Buildings 20%
Motor vehicles 20%
Furniture, fittings and equipment 10%
Renovation 10%
Leasehold land 10%
Mining assets Units of production
basis
Leasehold land refers to a piece of land owned by SEREM covered
by mining certificate MC511.
Assets in the course of construction are capitalised in the
assets under construction account and are not depreciated. Internal
costs such as salaries, travelling and accommodation of staff
directly involved in the development of construction are
capitalised. On completion, the cost of construction is transferred
to the appropriate category of property, plant and equipment and
depreciated accordingly.
(d) Other intangible assets
Other intangible assets comprise principally measured reserves,
indicated and inferred resources and the value of exploration
grounds and licences. These assets have arisen as a result of the
acquisition of RAGM and SEREM. They were independently valued just
prior to the acquisition date of 17th June, 2005. Other intangible
assets are recorded at cost and are reviewed annually for any
indication that those assets have suffered an impairment loss and
any such impairment would then be charged to profit or loss in the
statement of comprehensive income for the period.
Once an intangible mining asset is developed into a producing
asset, the value of the asset is written off over its producing
life using the units of production basis.
The portion of the intangible assets that relate to the Raub
projects are currently being amortised. The intangible assets
relating to SEREM are not yet amortised, as no production has
commenced.
(e) Mining development expenditure
Mining development expenditure is capitalised when it is
probable that the projects will be successful and the cost can be
measured reliably. Development expenditure that has been
capitalised is amortised over the life of the interest to which
such costs relate on a units of production basis and will be
recognised in profit or loss in the statement of comprehensive
income upon the commencement of commercial production.
Mining development expenditure comprises costs directly
attributable to:
-- Researching and analysing existing exploration data;
-- Conducting geological studies, exploratory drilling and sampling;
-- Examining and testing extraction and treatment methods;
-- Compiling pre-feasibility and feasibility studies; and
-- Costs incurred in acquiring mineral rights.
Expenses in the categories above include capitalised salaries of
relevant staff according to time spent on a project.
The portion of the mining development expenditure that relates
to the Raub projects is currently being amortised.
The mining development expenditure relating to SEREM has not yet
been amortised, as production has not yet commenced.
(f) Inventories
Inventories of consumable supplies and spare parts are valued at
the lower of cost and net realisable value. Cost comprises direct
costs and overheads that have been incurred in bringing the
inventories to their present location and condition. The FIFO
method is used for determining costs. Gold is valued at net
realisable value using market price at the year-end, or where
applicable, a forward contract price. Work-in-progress comprises
gold concentrates and gold contained in stockpiled ore as
determined by production records. The cost of work-in-progress
includes the cost of direct materials, labour, and variable and
fixed overheads relating to mining activities and is valued at the
lower of cost and net realisable value less costs to sell.
(g) Trade and other receivables
Trade and other receivables are recognised initially at fair
value and subsequently measured at amortised cost using the
effective interest rate method less appropriate allowances for
estimated irrecoverable amounts.
(h) Cash and cash equivalents
Cash and cash equivalents comprise cash in hand and balances and
deposits with banks which mature within three months of the date of
deposit and have an insignificant risk of changes in value. For the
purpose of the cash flow statement, cash and cash equivalents are
presented net of bank overdrafts.
(i) Impairment
The carrying amounts of assets, other than inventories, deferred
tax assets and financial assets, are reviewed at each financial
reporting date to determine whether there is any indication that
those assets have suffered an impairment loss. If any such
indication exists, the asset's recoverable amount is estimated. An
impairment loss is recognised whenever the carrying amount of an
asset or the cash-generating unit to which it belongs exceeds its
recoverable amount. Impairment losses are recognised in profit or
loss in the statement of comprehensive income.
The recoverable amount is the greater of the asset's net selling
price and its value in use. In assessing value in use, estimated
future cash flows are discounted to their present value using a
pre-tax discount rate that reflects current market assessments of
the time value of money and the risks specific to the asset. For an
asset that does not generate largely independent cash inflows, the
recoverable amount is determined for the cash-generating unit to
which the asset belongs.
(j) Trade and other payables
Trade and other payables are recognised initially at fair value
and subsequently measured at amortised cost using the effective
interest rate method.
(k) Borrowings and borrowing costs
All loans and borrowings are initially recognised at the fair
value of the consideration received net of direct issue costs
associated with the borrowing. Financing charges, including
premiums payable on settlement or redemption and direct issue
costs, are accounted for on an accruals basis and are expensed as
incurred. The interest component of finance lease payments is
recognised in profit or loss in the statement of comprehensive
income so as to give a constant periodic rate of interest on the
outstanding liability.
Interest on borrowings relating to the financing of capital
projects under construction is capitalised during the construction
phase as part of the cost of the project. Such borrowing costs are
capitalised over the period during which the asset is being
acquired or constructed and borrowings have been incurred.
Capitalisation ceases when the asset is substantially complete and
ready for use.
(l) Leases
Leases in which the Group assumes substantially all the risks
and rewards of ownership are classified as finance leases. Assets
acquired by way of finance leases are stated at an amount equal to
the lower of their fair values and the present value of the minimum
lease payments at the inception of the leases, less accumulated
depreciation and impairment losses.
In calculating the present value of the minimum lease payments,
the discount rate is the interest rate implicit in the lease, if
this is practicable to determine; if not, the Group's incremental
borrowing rate is used.
Payments made under operating leases are recognised in profit or
loss in the statement of comprehensive income on a straight-line
basis over the term of the lease.
(m) Revenue
Revenue is recognised at the fair value of the consideration
received or receivable to the extent that it is probable that the
economic benefits will flow to the Group and the revenue can be
reliably measured. Gold sales are recognised when the significant
risks and rewards of ownership are transferred to the buyer.
Amounts are recorded net of value added tax, rebates and
discounts.
(n) Retirement benefit costs
Obligations for contributions to defined contribution plans are
recognised as an expense in profit or loss in the statement of
comprehensive income as incurred.
(o) Income tax
Current tax is provided based on the results for the period.
Deferred tax is recognised on temporary differences between the
carrying amounts of assets and liabilities in the financial
statements and the corresponding tax bases used in the computation
of taxable profit, and is accounted for using the liability method.
Deferred tax assets and liabilities are measured at the tax rates
that are expected to apply in the period in which the liability is
settled or the asset realised, based on tax rates (and tax laws)
that have been enacted or substantively enacted by the end of the
reporting period. The carrying amount of deferred tax assets is
reviewed at the end of each reporting period and reduced to the
extent that it is no longer probable that sufficient taxable
profits will be available to allow all or part of the asset to be
recovered.
(p) Functional and presentation currency
The consolidated financial statements have been presented with
United Kingdom Sterling as the presentation currency as the Company
is incorporated in Jersey with Sterling denominated shares which
are traded on AIM, a market operated by the London Stock
Exchange.
The functional currency of the subsidiaries RAGM and SEREM is
considered to be Malaysian Ringgit, as the major part of financing
and expenses in relation to mining activities, overheads and
corporation tax are in Malaysian Ringgit.
(q) Foreign currency translation
Foreign exchange differences arising on the settlement of items
at rates different from those at which they were initially recorded
are recognised in profit or loss in the statement of comprehensive
income in the period in which they arise.
Subsidiaries are considered as financially, economically and
organisationally autonomous foreign entities. Their reporting
currencies are the respective local currencies. Assets and
liabilities of foreign subsidiaries are translated to United
Kingdom Sterling at the rate of exchange ruling at the financial
reporting date. Revenue and expenses are translated at the average
exchange rates for the year. All resulting translation differences
are included in other comprehensive income.
The closing rates used in the translation of foreign currency
assets and liabilities are as follows:
United Kingdom
Sterling 1.00 Malaysian Ringgit 4.85370
(2012: 4.98040)
The average rate used in translation of foreign currency income
and expenses during the year is as follows:
United Kingdom 1.00 Malaysian Ringgit 4.8340
Sterling
(r) Financial assets and liabilities
Financial assets and liabilities are recognised in the statement
of financial position when the Group has become a party to the
contractual provisions of the instrument.
-- Classification as debt or equity
Debt and equity instruments are classified as either financial
liabilities or as equity in accordance with the substance of the
contractual arrangement.
-- Equity instruments
An equity instrument is any contract that evidences a residual
interest in the assets of an entity after deducting all of its
liabilities. Equity instruments issued by the Group are recognised
at the proceeds received, net of direct issue costs.
-- Debt instruments
Interest bearing bank loans are initially measured at fair value
(proceeds received, net of direct issue costs), and are
subsequently measured at amortised cost, using the effective
interest rate method.
-- Investments in subsidiaries
Investments held by the Parent Company in subsidiaries are held
at cost less impairment.
-- Financial guarantee contract liabilities
Financial guarantee contract liabilities are measured initially
at their fair values and subsequently measured at the higher of the
amount of the obligation, as determined in accordance with IAS37
and the amount initially recognised less, where appropriate,
cumulative amortisation.
(s) Deferred stripping costs
Stripping costs incurred during the production phase to remove
waste ore are deferred to the statement of financial position and
charged to operating costs on the basis of the average life of the
mine stripping ratio.
The average stripping ratio is calculated as the number of cubic
metres of waste material removed per tonne of ore mined. The
average stripping ratio over the life of the mine is revised
annually in the light of additional knowledge and change in
estimates.
(t) Environment protection, rehabilitation and closure costs
Provision is made for close down, restoration and for
environment clean up costs, where there is a legal or constructive
obligation to do so and when it is quantifiable. Any provision is
reviewed on an annual basis for any changes in cost estimates or
lives of operations.
(u) Judgements in applying accounting policies and sources of estimation uncertainty
Certain amounts included in the financial statements involve the
use of judgement and/or estimation. These are based on management's
best knowledge of the relevant facts and circumstances, having
regard to prior experience. However, judgements and estimations
regarding the future are a key source of uncertainty and actual
results may differ from the amounts included in the financial
statements.
The key areas are summarised below:
(i) Other intangible assets and mining development
expenditure
The recoverability of other intangible assets and mining
development expenditure, including exploration costs, is assessed
based on a judgement about the likely economic feasibility of the
projects.
(ii) Carrying values of property, plant and equipment
The Group periodically makes judgements as to whether its
property, plant and equipment may have been impaired, based on
internal and external factors. Any impairment is based on estimates
of future cash flows.
(iii) Recognition of deferred tax assets
The determination of deferred tax assets relating to carried
forward taxable losses against future taxable profits is set out in
Note 19.
(iv) Environment protection, rehabilitation and closure
costs
Such provisions require a judgement on likely future
obligations, based on assessment of technical, legal and economic
factors. The ultimate cost of such items is uncertain and cost
estimates can vary in response to many factors, including changes
to the relevant legal requirements and the life of mine.
3. Investment in Subsidiaries
Company 2013
GBP
Cost and net book value
At 30(th) June 2011 19,191,506
Amortisation of corporate guarantees (49,925)
-------------
At 30(th) June 2012 19,141,581
Additions - corporate guarantee for
RM104,080,036 bank facility granted
to RAGM 142,029
Additions - corporate guarantee for
USD6,000,000 bank facility granted
to RAGM 17,020
Written Off - corporate guarantee
for RM169,000,000 bank facility granted
to RAGM (89,243)
Amortisation of corporate guarantees (28,202)
At 30(th) June 2013
19,183,185
-------------
The Company has issued a corporate guarantees to Bank Kerjasama
Rakyat Malaysia Berhad and a corporate guarantee to Alkhair
International Islamic Bank Berhad for bank facilities granted to
RAGM (Notes 11 and 23). The corporate guarantees are amortised over
the expected life of the loans.
The Company's investment in RAGM is GBP12,407,475 and its
investment in SEREM is GBP6,775,710.
Subsidiary Companies
The consolidated financial statements include the following
subsidiary companies held at 30(th) June 2013:
Subsidiary companies and Nature of Place Ordinary
country of incorporation business of business shares
owned
Raub Australian Gold Mining Gold mining
Sdn. Bhd. ("RAGM") and exploration Malaysia 100%
(Malaysia)
Exploration
and the holding
of exploration
S.E.R.E.M Malaysia Sdn. and mining
Bhd. ("SEREM") rights Malaysia 100%
(Malaysia)
4. Property, Plant and Equipment
Furniture,
fittings Assets
Plant and Motor and Mining Leasehold under
equipment Buildings vehicles equipment Renovation Assets land construction Total
Group GBP GBP GBP GBP GBP GBP GBP GBP GBP
Cost
At 1(st) July
2011 3,219,927 456,558 413,233 384,217 206,129 15,942,474 102,779 20,467,594 41,192,911
Currency
translation
difference (74,738) (10,597) (9,591) (8,883) (4,784) (370,041) (2,386) (475,073) (956,093)
Additions 9,523 12,302 184,613 34,235 2,209 2,937,301 - 8,366,894 11,547,077
Disposals - - (28,145) - - - - - (28,145)
At 30(th)
June 2012 3,154,712 458,263 560,110 409,569 203,554 18,509,734 100,393 28,359,415 51,755,750
Additions 14,183 375 - 18,909 - 853,734 - 3,867,225 4,754,426
Disposal - - (140,707) - - - - - (140,707)
Currency
translation
difference 82,350 11,962 14,621 10,652 5,314 483,174 2,621 740,288 1,350,982
At 30(th)
June 2013 3,251,245 470,600 434,024 439,130 208,868 19,846,642 103,014 32,966,928 57,720,451
========== ========== ========== =========== =========== =========== =========== ============= ============
Furniture,
Plant fittings Leasehold Assets Total
and Motor and Mining land under
equipment Buildings vehicles equipment Renovation Assets construction
Group GBP GBP GBP GBP GBP GBP GBP GBP GBP
Accumulated
depreciation
At 1(st) July
2011 2,501,411 255,543 169,995 131,566 49,887 2,389,574 41,112 - 5,539,088
Currency
translation
difference (58,608) (6,743) (5,123) (3,439) (1,395) (69,383) (1,072) - (145,763)
Charge for
the year 47,190 69,869 101,197 35,211 20,445 1,199,299 10,157 - 1,483,368
Disposals - - (27,841) - - - - - (27,841)
At 30(th)
June
2012 2,489,993 318,669 238,228 163,338 68,937 3,519,490 50,197 - 6,848,852
Currency
translation
difference 64,795 8,025 5,863 4,088 1,714 84,706 1,268 - 170,459
Charge for
the year 48,978 72,268 87,662 37,660 20,972 1,765,585 10,343 - 2,043,468
Disposals
Re - - (42,212) - - - - - (42,212)
At 30(th)
June
2013 2,603,766 398,962 289,541 205,086 91,623 5,369,781 61,808 - 9,020,567
========== ========== ========= =========== =========== ================== ========== ================ =============
Net book
value
at 30(th)
June
2013 647,479 71,638 144,483 234,044 117,245 14,476,861 41,206 32,966,928 48,699,884
Net book
value
at 30(th)
June
2012 664,719 139,594 321,882 246,231 134,617 14,990,244 50,196 28,359,415 44,906,898
========== ========== ========= =========== =========== ================== ========== ================ =============
Assets under construction refer to the additional expansion
construction works in progress for the Carbon-In-Leach plant which,
upon completion will be transferred to gold production plant. The
plant is expected to be commissioned within the second half of the
financial year to 30(th) June 2014. Included in additions to assets
under construction for the year are capitalised borrowing costs
amounting to GBP223,519 (2012: GBP1,264,120). The rate of
capitalisation is 7.9% (2012: 17.8%).
Included in property, plant and equipment are motor vehicles
acquired under hire purchase agreements with a net book value of
GBP138,773 (2012: GBP313,502).
Leasehold land is land owned by SEREM which relates to the
mining certificate MC511 area.
The Company does not hold any property, plant and equipment of
significant value.
5. Other Intangible Assets - Mining Reserves and Resources
SEREM RAGM Group
GBP GBP GBP
Cost
At 1(st) July 2011 ,
30(th) June 2012 and
30(th) June 2013 7,300,483 10,077,995 17,378,478
============ ============= =============
Amortisation
At 1(st) July 2011 - 1,527,896 1,527,896
Charge for the year - 585,445 585,445
At 30(th) June 2012 - 2,113,341 2,113,341
Charge for the year - 853,867 853,867
At 30(th) June 2013 - 2,967,208 2,967,208
============ ============= =============
Net book value
15,265
At 30(th) June 2013 7,300,483 7,110,787 14,411,270
============ ============= =============
At 30(th) June 2012 7,300,483 7,964,654 15,265,137
============ ============= =============
Other intangible assets comprise mineral properties including
mining licences and rights.
The Group's mining assets were valued by independent experts
prior to the acquisition of the subsidiaries on 17(th) June 2005
and these valuations were considered to be relevant and unimpaired
at the financial reporting date. The valuation was based upon the
defined reserves, resources and the Group's prospecting interests.
Valuation techniques most relevant to the asset type, as considered
by the independent valuer, were applied and included discounted
cash flows for the defined reserves, comparable transaction method
for the inferred resources and the Geoscience Factor method for
mineral titles. The gold price used for the discounted cash flow
calculation of the reserves at the time of the original valuation
was US$ 420 per ounce. The Group has used a gold price of US$ 1,400
per ounce in the impairment assessment for the current year.
No revenue has been generated in SEREM in the financial years
ended 30(th) June 2013 and 30(th) June 2012 from its mineral
reserves. Hence, there is no amortisation of mining reserves and
resources for SEREM. Management expects this asset to generate a
return. This is evident from the Group's efforts in drilling and
further exploring on the SEREM tenements. Hence, no impairment is
required.
The current profile and amount of gold reserves and resources
are disclosed in the Chairman's Statement.
6. Mining Development Expenditure
SEREM RAGM Group
GBP GBP GBP
Cost
At 30(th) June 2011 2,004,787 6,211,552 8,216,339
Currency translation
difference (46,534) (144,175) (190,709)
Additions 303,498 1,128,393 1,431,891
---------- ---------- ----------
At 30(th) June 2012 2,261,751 7,195,770 9,457,521
Currency translation
difference 59,040 187,837 246,877
Additions 141,970 11,711 153,681
---------- ---------- ----------
At 30(th) June 2013 2,462,761 7,395,318 9,858,079
========== ========== ==========
Amortisation
At 30(th) June 2011 - 703,789 703,789
Currency translation
difference - (21,742) (21,742)
Charge for the year - 465,838 465,838
---------- ---------- ----------
At 30(th) June 2012 - 1,147,885 1,147,885
Currency translation
difference - 26,974 26,974
Charge for the year - 736,833 736,833
At 30(th) June 2013 - 1,911,692 1,911,692
========== ========== ==========
Net book value
At 30(th) June 2013 2,462,761 5,483,626 7,946,387
========== ========== ==========
At 30(th) June 2012 2,261,751 6,047,885 8,309,636
========== ========== ==========
Mining development expenditure principally comprises exploration
related costs incurred for the Raub and Tersang project areas. No
revenue has been generated in SEREM in the financial years ended
30(th) June 2013 and 30(th) June 2012. Hence, there has been no
amortisation of mining development expenditure for SEREM. The
directors are of the view that future gold production activities
will be sufficiently economically viable to offset the mining
development expenditure capitalised in the financial
statements.
7. Inventories
Group 2013 2012
GBP GBP
Spare parts and consumables 895,347 624,248
Ore stockpiles 2,942,331 1,075,599
Work-in-progress 470,008 549,390
Finished goods 27,466 15,329
4,335,152 2,264,566
========== ==========
Despite the commencement of mining operations during the year
ended 30(th) June 2009, the level of deferred stripping relating to
the mining operations at Raub has not been significant to date and
consequently, no deferred stripping adjustment has been made during
the years ended 30(th) June 2013 or 30(th) June 2012.
8. Other receivables
Group Company
2013 2012 2013 2012
GBP GBP GBP GBP
Other receivables 1,169,982 1,035,807 100 100
Amounts due from
subsidiaries - - 16,430,261 16,430,261
1,169,982 1,035,807 16,430,361 16,430,361
========== ========== =========== ===========
The amounts due from subsidiaries are unsecured, interest free
and repayable on demand.
9. Cash and Cash Equivalents
Group Company
2013 2012 2013 2012
GBP GBP GBP GBP
Cash at bank and
in hand 264,659 180,238 60,302 141,297
======== ======== ======= ========
A fixed deposit of GBP157,873 (2012 : GBP107,360) with a
licensed bank has not been included in cash and cash equivalents as
it had a maturity exceeding three months at inception. It has been
reported in short term investments. The deposit is pledged to
financial institutions, for bank guarantees issued on behalf of
RAGM in favour of the Malaysian Director General of Customs and
Tenaga National Berhad.
10. Trade and Other Payables
Group Company
2013 2012 2013 2012
GBP GBP GBP GBP
Trade payables 8,189,557 5,130,331 85,133 17,300
Other payables and accrued
expenses 3,053,540 2,525,861 821,398 773,719
Amounts due to subsidiaries - - 3,449,798 2,786,084
----------- ---------- ---------- ----------
11,243,097 7,656,192 4,356,329 3,577,103
Less : non-current portion (480,000) (420,000) (480,000) (420,000)
10,763,097 7,236,192 3,876,329 3,157,103
=========== ========== ========== ==========
Included in other payables and accrued expenses are accrued
preference dividends of GBP480,000 (2012: GBP420,000). The amounts
are not deemed payable within 12 months of the financial reporting
date.
The amounts due to subsidiaries are unsecured, interest free and
repayable on demand.
Included in other payables of the Company is GBP273,109 (2012:
GBP263,743) payable to directors of the Company. These amounts are
unsecured, interest free and payable on demand.
11. Borrowings
Group Company
2013 2012 2013 2012
GBP GBP GBP GBP
Bank loans 23,335,543 25,316,917 - -
Preference shares
- debt portion (Note
13) 664,000 664,000 664,000 664,000
Corporate guarantees
issued to financial
institution for bank
facilities granted
to a subsidiary - - 139,168 97,564
Hire purchase obligations 180,315 314,704 - -
24,179,858 26,295,621 803,168 761,564
Less : current portion (3,427,937) (15,512,869) - -
20,751,921 10,782,752 803,168 761,564
============ ============== ======== ==========
Bank loans
In the year ended 30th June 2009, RAGM obtained bank loans of
GBP11,158,306 (after deducting transaction costs). The loan was
repayable in 60 monthly instalments commencing from 28th February
2009. An additional financing facility was granted to RAGM in
August 2009.
Both of these loans were refinanced in September 2012 with a
facility providing for an amount of up to RM124,000,000 with the
same financier, Bank Kerjasama Rakyat Malaysia Berhad. A total of
RM104,080,036 (GBP20,887,442) has been utilised to refinance the
loans. Similar to the refinanced loans, the new loan is secured by
way of a debenture over all the assets and undertakings of RAGM, a
third party charge over a property owned by a company under common
control and corporate guarantees provided by the parent company
During the year ended 30(th) June 2012, RAGM obtained a bank
loan of USD 6,000,000 (GBP 3,945,292, 2012: GBP3,805,679) with
Alkhair International Islamic Bank Berhad repayable within one year
of the first drawdown. This loan was refinanced with Alkhair
International Bank Berhad in December 2012.
The Alkhair bank loan is secured by way of a debenture ranking
after Bank Kerjasama Rakyat Malaysia Berhad and undertakings of
RAGM, a third party legal charge over a property owned by a company
under common control and corporate guarantees provided by the
parent company.
The Alkhair bank loan is subject to interest at a rate of 2.75%
above the Financier's 3 months cost of funds, which was 4.88% (2012
: 5.48%) and is repayable over 48 months commencing from the date
of disbursement with a 24 month grace period.
Hire purchase obligations
Hire purchase agreements are subject to fixed interest rates
ranging from 2.65% to 3.65% (2012 : 2.62% to 3.65%) per annum.
Borrowings are summarised as follows:
Within
Effective Within Within more
interest one - two - than
rate Within two five five
per annum one year years years years Total
Group % GBP GBP GBP GBP GBP
At 30(th) June
2013
Bank loans 8.77 3,382,502 4,708,899 14,131,368 1,112,774 23,335,543
Preference shares 6.17 - - 664,000 - 664,000
Hire purchase obligations 3.15 45,435 44,048 90,832 - 180,315
3,427,937 4,752,947 14,886,200 1,112,774 24,179,858
=========== ========== =========== ========== ==============
At 30(th) June
2012
Bank loans 9.96 15,450,954 8,379,403 1,486,560 - 25,316,917
Preference shares 6.17 - - 664,000 - 664,000
Hire purchase obligations 3.13 61,915 59,000 193,789 - 314,704
15,512,869 8,438,403 2,344,349 - 26,295,621
=========== ========== =========== ========== ==============
Hire purchase obligations
Group 2013 2012
GBP GBP
Repayable within one year 58,963 75,114
Repayable between one and five years 161,227 305,776
220,190 380,890
Finance charges and interest allocated
to future accounting periods (39,875) (66,186)
180,315 314,704
Included in liabilities falling
due within one year (45,435) (61,915)
Included in liabilities falling
due more than one year 134,880 252,789
========= =========
12. Provision for restoration
Group 2013 2012
GBP GBP
At 1(st) July - -
Adjustment to provision 797,699 -
Unwinding of discount on provision 25,287 -
At 30(th) June 822,986 -
======== =====
Provision for restoration of the mine site at Raub is based on
management's best estimate of the present value of future costs
required. The estimates are based on assumptions such as the extent
and cost of required rehabilitation activities. These uncertainties
may result in the actual future expenses being different from the
amounts currently provided.
The cost of restoration has been discounted to its present value
at 1 July 2012 using an annual discount rate of 3.27%. The
unwinding of the discount is recognised in the statement of
comprehensive income in finance cost over a period of five years.
The provision is reviewed annually for changes in cost estimates or
the life of operations.
13. Share Capital and Stated Capital Account
(a) Share Capital
Group & Company 2013 2012
GBP GBP
Authorised
Unlimited ordinary shares of GBPNil - -
par value each
- -
===== =====
Allotted, called up and fully paid
85,986,550 (2012: 85,986,550) ordinary - -
shares of GBPNil par value each
2,000,000 (2012: 2,000,000) preference - -
shares of GBPNil par value each
- -
===== =====
Reconciliation of Share Holdings Ordinary Preference
Shares in issue as at 30(th) June
2011 85,461,550 2,000,000
New shares issued via placing 525,000 -
Shares in issue as at 30(th) June
2012 and
30(th) June 2013 85,986,550 2,000,000
============ ===========
The authorised share capital of the Company at 30(th) June 2013
is an unlimited number of shares of no par value designated as
ordinary shares and an unlimited number of shares of no par value
designated as preference shares.
The Company has one class of ordinary shares which carry no
right to fixed income.
2,560,000 redeemable, convertible 6% preference shares were
issued at GBP0.50 per share on 27(th) May 2005. As at 30(th) June
2013 and 30(th) June 2012, there were 2,000,000 preference shares
in issue.
The preference shares carry no right to vote save in certain
limited circumstances including where the Company proposes to
reduce its capital, wind itself up or dispose of the whole of its
property and business. Payment of dividends is subject to Jersey
Companies Law, the availability of distributable profits and the
discretion of the Board. Redemption price equals issue price of
preference shares plus all dividends accrued at Redemption
Date.
The preference shares may be converted into ordinary shares at
the option of the holder. The rate of conversion is determined by
application of a formula that could result in every 4 preference
shares being converted into 5 ordinary shares.
The preference shares are redeemable at the option of the
Company either in cash or through the issue of ordinary shares to
the preference share holder. The number of ordinary shares issued
is determined by application of a formula that could result in the
issue of 5 ordinary shares for every 4 preference shares. The
Company does not expect to redeem further preference shares within
two years of the financial reporting date.
(b) Stated Capital Account
Group & Company 2013 2012
GBP GBP
At 1st July 40,897,957 40,792,957
Additions - 105,000
At 30(th) June 40,897,957 40,897,957
=========== ===========
Warrants
On 24(th) February 2009 the Company issued 5 million cashless
warrants and 5 million warrants exercisable at a price of 30p per
ordinary share to R3 Capital Partners Master LP. None of the
warrants were exercised and expired on 19(th) July 2012. The
warrants issued formed part of the consideration with respect to
the repurchase of convertible loan notes in a prior year.
14. Segmental Information
Currently the business has one business segment comprising the
production and sale of gold doré bars in Malaysia. Accordingly, no
analysis of segment revenues or results of net assets has been
presented.
During the years ended 30(th) June 2013 and 2012, the Group
generated all its revenues from gold sales to a single customer in
Australia, to whom it ships all its gold doré bars for refining.
For the year ended 30(th) June 2013 revenues of GBP22.8 million
arose from these sales of gold (2012 : GBP18.7 million)
15. Profit/(Loss) From Operations
Profit/(loss) from operations for the year is arrived at after
charging/(crediting) the following:
Group Company
2013 2012 2013 2012
Cost of sales GBP GBP GBP GBP
Costs of production 10,788,609 7,599,992 - -
Depreciation of property,
plant and equipment 1,815,190 1,247,217 - -
Operating & administrative
expenses
Depreciation of property,
plant and equipment 228,278 236,151 152 153
Audit fees 84,509 81,393 58,650 56,000
Amortisation of mining
development expenditure 736,833 465,838 - -
Amortisation of other
intangible assets 853,867 585,445 - -
Key management personnel
compensation 896,129 784,900 467,111 466,667
Rental of premises 140,157 140,267 - -
Rental of property, plant
and equipment 7,051 - - -
Profit on disposal of
fixed assets (12,812) (5,790) - -
===================== ========== ========= =========
16. Employees
Group Company
2013 2012 2013 2012
GBP GBP GBP GBP
Wages and salaries 2,581,142 2,177,568 467,111 466,667
Social security costs 22,072 17,106 - -
Other pension costs 187,206 153,702 - -
2,790,420 2,348,376 467,111 466,667
========== ========== ======== ========
The average monthly number of employees during the year was as
follows:-
Group Company
2013 2012 2013 2012
Administration 34 36 2 2
Production 259 204 - -
293 240 2 2
===== ===== ===== =====
17. Financial (Costs) / Income
Group Company
2013 2012 2013 2012
Finance costs: GBP GBP GBP GBP
Bank loan interest 1,704,662 738,293 - -
Other financial charges 744,453 336,086 336 650
Amortisation of transaction
costs 35,590 276,051 - -
Preference dividends 60,000 60,000 60,000 60,000
2,544,705 1,410,430 60,336 60,650
Financial income: GBP GBP GBP GBP
Interest income 5,660 3,879 32 64
5,660 3,879 32 64
============ ======== ==== ====
Net financial loss (2,539,045) (1,406,551) (60,304) (60,586)
============ ============ ========= ==========
18. Income Tax Expense
The Company is subject to Jersey income tax at a rate of 0%
(2012: 0%). The Company's subsidiary RAGM has Pioneer tax status
which allows an 85% tax exemption on statutory income for a period
of 5 years commencing 1(st) April 2009. Thus the effective tax rate
is 3.75% (2012: 3.75%). Income tax for the financial year is
derived by using the Malaysian tax rate of 25% (2012: 25%).
Tax reconciliation:
Group
2013 2012
GBP GBP
Profit before taxation 2,550,737 3,346,897
=============== =============
Income tax using Malaysian tax
rate 637,684 836,724
Disallowed expenses 1,450,523 1,053,505
Tax exempt under Pioneer Status (1,404,850) (1,395,751)
Effect of timing difference on
mining allowance and capital allowance (434,287) (239,532)
Underprovision in prior year (10,527) 71,540
Taxation charge 238,543 326,486
=============== =============
19. Deferred Taxation
No deferred tax asset has been recognised in respect of the
following items:
Group 2013 2012
GBP GBP
Unabsorbed capital allowance and mining
allowance 34,999 34,156
Unutilised tax losses 4,976,029 4,973,985
5,011,028 5,008,141
============ ===========
One of the Company's subsidiaries, RAGM has received a
confirmation from the Malaysian Industrial Development Authority,
the government's principal agency for the promotion and
coordination of industrial development in Malaysia, that RAGM's
Raub Tailings Project is entitled to "Pioneer Status". Under the
Pioneer Status scheme, RAGM will be entitled to 85% tax exemption
on its statutory income from the project for a period of 5 years
commencing on the day that production reaches 30% of its planned
capacity. Production from the tailings operations began in February
2009. RAGM's production reached 30% of its planned capacity in
April 2009.
The unutilised tax losses do not expire under the Malaysian tax
legislation but cannot be offset against taxable profits during the
'Pioneer' period. As a result of uncertainty of recoverability of
these taxable losses, due to the volatility of gold prices, a
deferred tax asset has not been recognised at 30(th) June 2013. If
there is a substantial change in shareholders (more than 50%)
however, the unutilised tax losses will not be available to
RAGM.
20. Earnings Per Share
(a) Basic Earnings Per Share
The basic earnings per share for the year is 2.69p (2012 : 3.53p
). The calculation of the basic earnings per share is based on the
profit for the year of GBP2,312,194 (2012 : GBP3,020,411). The
weighted average number of shares in issue during the year was
85,986,550 (2012 : 85,465,853 shares).
(b) Diluted Earnings Per Share
The diluted earnings per share for the year is 2.69p (2012 :
3.53p). The calculation of the diluted earnings per share is based
on the profit for the year of GBP2,312,194 (2012 : GBP3,020,411).
The weighted average number of shares during the year was
85,986,550 (2012 : 85,465,853 shares).
Basic earnings per share 2013 2012
GBP GBP
Earnings used in calculation 2,312,194 3,020,411
----------- -----------
Weighted average number of
ordinary shares 85,986,550 85,465,853
----------- -----------
Basic earnings per share 2.69p 3.53p
=========== ===========
Diluted earnings per share 2013 2012
GBP GBP
Earnings used in calculation 2,312,194 3,020,411
----------- -----------
Weighted average number of ordinary
shares 85,986,550 85,465,853
Diluted earnings per share 2.69p 3.53p
=========== ===========
Conversion of the preference shares is considered to be
non-dilutive in both 2012 and 2013.
21. Capital Commitments
Group 2013 2012
GBP GBP
Authorised and contracted for 4,814,839 10,012,846
========== ===========
The above amounts at 30(th) June 2013 and 2012 relate to a
commitment for the expansion of the Carbon-in-Leach Plant (CIL),
which is expected to be commissioned within the second half of the
financial year to 30(th) June 2014.
22. Key Management Personnel Compensation
Group Company
2013 2012 2013 2012
GBP GBP GBP GBP
Short term benefits 896,129 784,900 467,111 466,667
======== ======== ======== ========
Key management personnel comprise directors and individuals
having authority and responsibility for planning, directing and
controlling all activities of the entity either directly or
indirectly.
Directors' emoluments of the Company are as follows:-
Directors' emoluments 2013 2012
GBP GBP
Company
Dato' Sri Andrew Tai Yeow Kam 250,000 250,000
Mr. Timothy Patrick Watson 167,111 166,667
Dato' Mohamed Moiz Bin JM Ali Moiz 25,000 25,000
Dr.Yves Fernand Marcel Cheze 25,000 25,000
-------- --------
467,111 466,667
======== ========
Dato' Sri Andrew Tai Yeow Kam also receives GBP7,447 (2012 :
GBP7,313) of director fees from Raub Australian Gold Mining Sdn
Bhd, a subsidiary of the Company.
There is no share option scheme, long term incentive plan or
awards in place. The Company does not make any contributions to any
pension scheme.
23. Related Party Transactions
As a result of Dato' Sri Andrew Tai Yeow Kam's 99.9% interest in
Akay Holdings Sdn. Bhd. and 70% interest in Akay Venture Sdn. Bhd
and the substantial shareholding of Akay Holdings Sdn. Bhd. and
Akay Venture Sdn. Bhd. in the Company and Dato' Mohamed Moiz Bin JM
Ali Moiz's substantial shareholding in the Company, the following
are considered related party transactions:
(a) On 30(th) May 2013, Raub Australian Gold Mining Sdn Bhd
("RAGM") was granted by Akay Holdings Sdn. Bhd. a registered permit
to undertake mining activities on the 1669 Mining Lease for a
period of one year expiring on 30(th) July 2014. Provided that RAGM
does not breach the terms of the permit, Akay Holdings Sdn. Bhd.
will grant an annual extension of the permit until expiry of the
1669 Mining Lease on 31(st) December 2038. The Group pay Akay
Holdings Sdn. Bhd. GBP2,033 annually under this agreement to permit
the Group to carry out gold mining activity at Raub, Pahang. The
Directors are confident that the permit will be renewed once it
expires.
(b) On 30(th) May 2013, RAGM was granted by Akay Holdings Sdn
Bhd an unregistered Permit To Mine to undertake mining activities
on Mining Certificate No. PL 533 for a period of one year expiring
on 8(th) July 2014. During the year, RAGM paid GBP292,812 (2012:
GBP234,031) to Akay Holdings Sdn Bhd as royalties for mining
oxide.
(c) During the financial year, RAGM had obtained an Islamic
financing facility for up to RM124 million (GBP24.9million)
("Refinancing Facility") from its existing financier, Bank
Kerjasama Rakyat Malaysia Berhad ("Bank Rakyat") to refinance its
three existing financing facilities with Bank Rakyat ("Existing
Facilities"). On 28(th) September 2012, RAGM, Peninsular Gold
Limited and Akay Holdings Sdn Bhd entered into a supplemental
agreement ("Supplemental Agreement") to vary the previous agreement
entered into whereby RAGM had agreed to pay Akay an annual fee for
creating a charge in favour of Bank Rakyat. Under the Supplemental
Agreement, the annual fee payable to Akay was reduced from RM2.35
million (GBP486,139) to RM1.7 million (GBP351,675). This is
disclosed in Note 11 to the financial statements.
(d) The Company issued a fresh corporate guarantee in favour of
Bank Kerjasama Rakyat Malaysia Berhad under the Refinancing
Facility to replace the earlier three corporate guarantees provided
under the Existing Facilities. This was to enable RAGM to secure
the RM124 million facilities as disclosed in Note 11 to the
financial statements.
(e) RAGM had obtained an Islamic financing facility for up to
USD6million (GBP3.95million) ("New Facility") from its existing
financier, Alkhair International Islamic Bank Berhad ("Alkhair
Bank") to refinance its existing one year working capital facility
with Alkhair Bank ("Alkhair's Existing Facility"). On 7(th)
December 2012, RAGM, Peninsular Gold Limited and Akay Holdings Sdn
Bhd entered into an agreement whereby RAGM agrees to pay Akay an
annual fee of RM260,000 (GBP53,785) for creating a charge which is
required to be provided under the New Facility in favour of Alkhair
Bank. This is disclosed in Note 11 to the financial statements.
(f) On 7(th) December 2012, the Company issued a fresh corporate
guarantee in favour of Alkhair Bank under the New Facility to
replace the earlier corporate guarantee provided under Alkhair's
Existing Facility to enable RAGM to secure the USD6 million
refinancing facility as disclosed under Note 11 to the financial
statements.
(g) As at 30(th) June 2013, there is an amount of GBP273,109
(2012: GBP263,743) owing to the directors of Peninsular Gold
Limited, as disclosed in Note 10. This relates to unpaid directors'
fees and expenses. The amounts are interest free and unsecured.
24. Financial Risk Management
The Group's activities expose it to a variety of financial
risks, including the effects of changes in commodity prices,
exchange rates, interest rates, credit and liquidity risks. The
Board reviews and agrees policies for managing each of these risks.
The Group does not currently have a policy of using financial
derivatives to mitigate these risks. The following information is
presented in order to assist users of the financial statements in
assessing the extent of risk related to financial instruments.
2013 2012
GBP GBP
Financial assets, at amortised
cost
Cash and cash equivalents 264,659 180,238
Fixed deposit 157,873 107,360
Other receivables 1,169,982 1,035,807
1,592,514 1,323,405
===========
Financial liabilities, at amortised
cost
Trade and other payables 11,243,097 7,656,192
Hire purchase creditors 180,315 314,704
Other long-term liabilities 23,999,543 25,980,917
35,422,955 33,951,813
===========
Fair value of financial assets and liabilities
Fair value is defined as the amount at which the financial
instruments could be exchanged in a current transaction between
knowledgeable, willing parties in an arms-length transaction, other
than a forced sale or liquidation. Management consider that the
carrying amounts of the financial assets and liabilities
approximate to their estimated fair values.
Commodity price risk
The Group is subject to commodity price risk. Management does
not consider it necessary to mitigate this risk. At 30(th) June
2013, the spot price of gold was USD 1,192 per ounce (30(th) June
2012: USD 1,599 per ounce).
Credit risk
Management has a credit policy in place and the exposure to
credit risk is monitored on an ongoing basis to ensure that the
Group only deals with well established counterparties, including
international banks and reputable third parties. At the reporting
date, the main areas of significant concentration of credit risk
include cash and cash equivalents and prepaid capital costs within
other receivables.
Interest rate risk
The Group is mainly exposed to interest rate risk through the
variable rate loans and holding of cash and cash equivalents. The
Group adopts a practice to periodically seek for alternative
facilities, which provide competitive interest rates to finance
and/or refinance its working capital requirements.
The Group finances its operations via equity fundraising and
bank loans bearing a margin of 2% per annum above the lender's base
financing rate, currently 6.60% and loans bearing a margin of 2.75%
per annum above the lender's 3 months cost of funds, which is 4.88%
at year end. Hire purchase arrangements are subject to fixed
interest rates ranging from 2.65% to 3.65% per annum. The Group has
not entered into interest rate swap arrangements to mitigate
interest rate risk.
If interest rates had been 1% higher/lower and all other
variables were held constant, the impact would be as follows:
Group Company
2013 2012 2013 2012
GBP GBP GBP GBP
Increase or decrease in
profit/(loss) 233,355 253,169 - -
Liquidity risk
The Group maintains a level of cash and cash equivalents and
bank facilities deemed adequate by management to finance the
Group's operations and to mitigate the effects of fluctuations in
cash flows. The maturity profile of the undiscounted financial
liabilities expected to be settled in cash, is disclosed below:
Group Within Within Within
Within one-two Two-five more than
one year years years five years Total
GBP GBP GBP GBP GBP
At 30(th) June
2013
Bank loans 4,961,709 5,569,727 16,709,182 1,139,006 28,379,624
Hire purchase
obligations 58,963 58,963 102,264 - 220,190
Trade and other
payables 10,763,097 - 480,000 - 11,243,097
15,783,769 5,628,690 17,291,446 1,139,006 39,842,911
At 30(th) June
2012
Bank loans 15,848,922 9,884,497 2,301,483 - 28,034,902
Hire purchase
obligations 75,114 75,114 230,661 - 380,889
Trade and other
payables 7,236,192 - 420,000 - 7,656,192
23,160,228 9,959,611 2,952,144 - 36,071,983
Despite the recent uncertainty and shortage of funds in the
financial markets, the Group has nonetheless
raised both debt and equity funding when required.
Exchange rate risk
The Group undertakes certain transactions denominated in foreign
currencies, namely Malaysian Ringgit, US Dollars and Australian
Dollars and is therefore exposed to exchange rate risk associated
with a fluctuation in the relative values of these currencies.
Exchange rate risk is mitigated to the extent considered
necessary by the Board of Directors, through holding the relevant
currencies.
The carrying amount of the Group's currency denominated monetary
assets and monetary liabilities at the reporting date are as
follows:
Assets Liabilities
2013 2012 2013 2012
GBP GBP GBP GBP
GB Pounds Sterling 60,402 141,397 1,709,699 1,488,373
US Dollars 147,021 1,428 74,686 69,219
Australian Dollars 74,747 1,226 286,454 372,632
Malaysian Ringgit 1,310,344 1,179,354 33,352,116 32,566,77
The following table illustrates the Group's sensitivity to the
fluctuation of the major currencies in which it transacts. A 10%
movement against United Kingdom Sterling has been applied to each
currency in the table above, representing management's assessment
of a reasonably possible change in foreign currency rates, and all
other variables were held constant:
Malaysian Ringgit
currency impact
2013 2012
GBP GBP
Profit and loss
- Strengthened against
GBP (3,204,177) (3,138,736)
- Weakened against
GBP 3,204,177 3,138,736
Other comprehensive
income
- Strengthened against - -
GBP
- Weakened against - -
GBP
The Group does not enter into forward exchange contracts to
hedge its foreign currency exposure. However, the Board keeps this
policy under review.
Capital risk management
The Group's objectives when managing capital are to safeguard
the Group's ability to continue as a going concern in order to
provide returns for shareholders and benefits for other
stakeholders subject to maintaining sufficient financial
flexibility to undertake its investment plans. The Group monitors
capital on the basis of the debt to adjusted capital ratio.
Adjusted capital of the Group is summarised as follows:
2013 2012
GBP GBP
Short-term investments (157,873) (107,360)
Cash and cash equivalents (264,659) (180,238)
Borrowings 24,179,858 26,295,621
Total equity 40,441,932 37,885,920
Adjusted capital 64,199,258 63,893,943
Gearing ratio (debt / adjusted
capital) 37.7% 41.2%
25. Recent Accounting Pronouncements
The financial statements have been drawn up on the basis of
accounting Standards, Interpretations and amendments effective or
early adopted at the beginning of the accounting period on 1st July
2012.
Management have concluded that there are no relevant Standards
or Interpretation in issue that are not yet adopted that will have
a significant impact on the financial statements, other than the
following:
On 19(th) October 2011, the IASB issued IFRIC 20 "Stripping
Costs in the Production Phase of a Surface Mine", which is
effective for periods beginning on or after 1(st) January 2013.
Current production at Raub has been from tailings and surface-level
oxide material and hence stripping costs incurred to date have been
minimal. Management are currently considering the effect IFRIC 20
will have on their treatment of the stripping costs that will be
incurred as the mine develops.
26. Non-cash transactions
During the year ended 30th June 2013, the Group has made a
provision for site restoration for GBP797,699, and has capitalised
a restoration asset of equivalent value.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR NKODPABDDBDB
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