Supporting your global mining business

Transcription

1 Supporting your global mining business PRECISE. PROVEN. PERFORMANCE.

2 Clients Our clients include mining businesses operating in gold, silver, oil and gas. They include: Adira Energy Ltd. Israel Amarillo Gold Corporation Brazil Amerix Precious Metals Corporation Brazil APO Energy Inc. Colombia Auryx Gold Corp. Namibia Browstones Ventures Barbados Inc. Delavaco Energy Colombia Inc. Eco Oil & Gas EMED Ltd. Spain and Slovakia Energizer Resources Inc. (Vanadium Madagascar) Golden Amera Resources Golden Grassland Limited China Infinity Oil Instrumentos & Servicios S.A. Kappa Resources Colombia Ltd Laramide Resources Ltd. Australia Metallum Resources Inc. Argentina 2

3 Supporting your global mining business Depleting resources. Increasing prices. Intensifying competition. World economy. Rising costs. There are numerous opportunities and pitfalls for mining companies how they are tackled will determine future success. We know this because we are there, helping our clients meet and profit from the challenges they face. We understand that making key decisions on daily basis is normal for businesses within the mining sector, meaning our services to the sector reflect the dynamism and complexity of our clients. Global reach Moore Stephens International Limited has grown to be the 13th largest international accounting and consulting network worldwide. Offering a range of integrated services to help you grow, we aim to add real commercial value to your mining business. Moore Stephens are able to provide both UK and multi jurisdiction audits and advice in most key sector locations, working with member firms in the Russian Far East, South Africa, Asia, the Middle East, Canada, America and Australia. We provide clients with the advice and support required to tackle compliance, improve performance and access capital markets. Our team is able to respond quickly to client needs, offer the full range of assurance and advisory services, and all at a sensible cost. And as one of the few mid tier accountants specialising in the mining sector, Moore Stephens provides a real alternative to the larger firms. Our objective is simple: to provide our clients with the support they require to meet their objectives. This strategy has not only proved beneficial to our clients, but has been one of the driving forces behind our growth over the last few years. Our aim is to react quickly to our clients needs. With member firms in over 630 locations across the globe, clients can feel confident that there is a Moore Stephens expert in close proximity to them. And as Moore Stephens International grows, so does our global reach. We provide clients with the advice and support required to tackle compliance, improve performance and access capital markets. Our team is able to respond quickly to client needs, offer the full range of assurance and advisory services, and all at a sensible cost. 3

4 Accounting for gold exploration Auryx Gold Corp. Auryx Gold Corp. is a Canadian resource company engaged in the acquisition and exploration of gold projects in Namibia. The company holds a 92% interest in 5 contiguous exclusive exploration licenses to explore for gold in the Otavi area of Namibia. The licenses cover a surface area of approximately 3,080 square kilometres in the north central part of the country. Golden Grassland Limited Golden Grassland Limited is a Chinese mining and exploration company engaged in the mining and exploration of Gold in Inner Mongolia with offices in Beijing. The company has one of the most highly developed mines and concentrate smelter, and is developing revenues in the mining of gold while continuing to explore and develop a major gold resource proximate to it s mining operation. The Moore Stephens International Limited member firm in Toronto, MSCM LLP, were initially engaged to assist with a takeover transaction and a 3 cornered amalgamation that was the go public transaction for Auryx Gold. We provided the expertise to develop the filing statement contents in the areas of audited, unaudited and pro forma financial information. As a result, Auryx Gold Corp. commenced trading it s common shares on the Toronto Stock Exchange (TSX) under the symbol AYX on July 9, On February 1, 2011, the company s share capital was dual-listed on the Namibian Stock Exchange (NSX). Since June 2010, the Auryx Gold Corp. has raised in excess of $80M in capital, with the funds being used to advance the exploration and drilling activities of the company s mineral properties. As well as being the company s auditors, MSCM LLP also assisted with the prospectus filings related to the financings completed in The team in Toronto are currently assisting the company with documentation of their internal controls over financial reporting and will be involved in their IFRS transition occurring in When looking to access the Canadian public markets, Golden Grassland engaged MSCM LLP as auditors, as a first step in the process of listing on the Toronto Venture Stock Exchange (TSXV). Our depth of experience in the resource sector and in China, allowed us to assist the company in providing input on the conversion of their financial statements from PRC Gaap to Canadian Gaap. In addition to providing audit and assurance services to Golden Grassland, MSCM LLP has assisted in pursuing a go public transaction, exposing the company to the Canadian marketplace, whilst providing an insight into the exchange requirements for reserve report studies and quantification. 4

5 Clients New Horizon Exploration, Inc. Northbrook Energy LLC US Oleoducto de los Llanos Orientales Omega Energy Colombia P1 Energy Corp. Colombia Petroleum Equipment International Ltd Quality Services and Investors S.A Quetzal Energy Ltd Royal Standard Minerals Inc. (Gold Nevada, United States) San Lucas Gold Shona Energy (Colombia) Ltd Sinopec International Petroleum Services Colombia Ltd Sillenger Exploration Corp. Equatorial Guinea Takara Resources Inc. - Guyana Virgin Metals Inc. - Mexico 5

6 Full scope of auditing for energy companies P1 Energy Corp. In 2010, P1 Energy Corp. amalgamated with APO Energy Inc. As individual private companies they had raised significant public financing and acquired exploration stage and operating oil and gas assets in Colombia. Now operating as P1 Energy Corp, the company is now in the process of going public in Canada via a reverse take-over of a public company shell. MSCM LLP, a Moore Stephens International Limited member firm based in Toronto, assisted by the Moore Stephens member firm in Colombia, has helped each company as they grew from their start up phase to their current state. Key areas of involvement included audit and other assurance services required in raising public funding, preparation of due diligence reports in connection with the acquisition of Colombian oil and gas assets, assistance in preparation of financial documentation for the merger of P1 and APO, assistance in dealing with Canadian regulators and assistance in structuring the companies internationally so as to be best positioned from an income tax perspective. MSCM LLP continue to be involved with P1 Energy Corp. as it completes its reverse take-over transaction that will make it a listed public company. Coal of Africa Ltd Domiciled in Australia, Coal of Africa Ltd (CoAL) is listed on the Australian Stock Exchange, the Johannesburg Stock Exchange and the AIM Stock Exchange in London. Their principal activities are the exploration, development and mining of thermal and coking coal projects in South Africa. CoAL currently has two mines in production and two major coal projects in the exploration and development phase. Moore Stephens Perth Pty Ltd acted as statutory auditors of the group. With all operations taking place in South Africa or neighbouring countries, they worked closely with Moore Stephens Johannesburg, who report on the process of completing the group audit and half year review. During 2010 CoAL moved from the AIM market to a primary listing and on to the main market of the London Stock Exchange. As part of this process Moore Stephens Perth worked with the project committee headed up by JP Morgan Cazenove. The scope of work included carrying out a full group audit, the provision of an audit report on the last three years financials for inclusion in the prospectus, assisting the Reporting Accountant in the UK and participation in regular meetings held by the project committee. As Canadian publicly listed entities are now required to convert from Canadian GAAP to IFRS for years beginning on or after January 1, 2011, MSCM LLP will also be assisting P1 with this transition, providing more opportunities for P1 Energy Corp. in international capital markets. 6

7 Peninsular Gold Ltd Incorporated in Jersey, Peninsular Gold Ltd owns gold exploration rights and conducts mining activities in the Raub District of the State of Penang in Malaysia, via its wholly owned Malaysian subsidiaries, Raub Australian Gold Sdn Bhd and SEREM Malaysia Sdn Bhd. In June 2005 Peninsular Gold became the first Malaysiancontrolled gold mining company to be listed on AIM, London. Moore Stephens London acted as reporting accountants to the float and has subsequently acted as company auditor, advising on accounting and related matters. KEFI Minerals Cyprus-based KEFI Minerals is a dynamic exploration company focused on exploring for world-class mineral deposits in the well-endowed and under-explored Tethyan Mineral Belt of Turkey and Arabian Shield of Saudi Arabia. In December 2006, KEFI Minerals listed on AIM in London, assisted by Moore Stephens London which acted as reporting accountants. Since then Moore Stephens has acted as auditor to the holding company, at some points with the assistance of the Moore Stephens International network member firm in Nicosia, Cyprus. At flotation, Peninsular s plans were to build a plant and begin mining and gold production, while also exploring in its licence areas and gaining new licence areas to identify additional gold resource. Since 2005 the company has built its first gold producing plant, originally with 1.1 million tonnes per annum capacity, this being expanded to 2 million tonnes capacity during Exploration activities have also continued, with additional proven reserves within the Raub licence areas. By April 2011, proven reserves totalled around 218,000 ounces. A diamond drilling programme is also ongoing, targeting deeper resource. The company has also gained two new licence areas, providing 2,000 hectares of exploration grounds. Drilling and exploration activity is underway. Following its listing in 2006, KEFI Minerals has established itself as an innovative gold and copper exploration company and has quickly expanded its exploration portfolio. In Turkey it is primarily targeting large low-sulphidation epithermal gold systems and porphyry-style gold-copper systems. It benefits from an extensive proprietary exploration database that contains information about approximately 100 prospective sites in Turkey. The company recently expanded its sphere of interest with the formation of a new minerals exploration joint venture within the Kingdom of Saudi Arabia, where it is exploring for mesothermal vein-hosted gold mineralisation, listwaenite-hosted gold deposits and Kuroko-style volcanogenic copper-zinc mineralisation. 7

8 Moore Stephens globally Moore Stephens International Limited is a global accountancy and consulting association with its headquarters in London. Contact information For more information, contact your usual Moore Stephens partner, or log on to: to locate your nearest Moore Stephens office. With fees of US$2.1 billion and offices in 97 countries, you can be confident that we have access to the resources and capabilities to meet your needs. Moore Stephens International independent member firms share common values: integrity, personal service, quality, knowledge and a global view. By combining local expertise and experience with the breadth of our UK and worldwide networks, clients can be confident that, whatever their requirement, Moore Stephens will provide the right solution to their local, national and international needs. We believe the information contained herein to be correct at going to press, but we cannot accept any responsibility for any loss occasioned to any person as a result of action or refraining from action as a result of any item herein. This brochure is not a substitute for professional advice. Printed and published by Moore Stephens LLP, a member firm of Moore Stephens International Limited, a worldwide association of independent firms. MSIL and its member firms are legally distinct and separate entities. Moore Stephens LLP is registered to carry on audit work by the Institute of Chartered Accountants in England and Wales. Authorised and regulated by the Financial Services Authority for investment business. DPS16210 November 2011