Rex Minerals Limited and its controlled entities. 31 December 2007 Interim financial report

Transcription

1 Rex Minerals Limited and its controlled entities 31 December 2007 Interim financial report

2 Corporate Directory DIRECTORS Paul Chapman (Chairperson) Steven Olsen (Managing Director) Richard Laufmann COMPANY SECRETARY Amber Rivamonte PRINCIPAL & REGISTERED OFFICE 24 Skipton Street Ballarat Victoria 3350 CONTACT DETAILS PO Box 626W Ballarat West Victoria 3350 Tel: Fax: SHARE REGISTRARS Security Transfer Registrars Pty Ltd 770 Canning Highway Applecross WA 6153 AUDITORS KPMG 147 Collins Street Melbourne Victoria 3000 BANKERS ANZ Banking Group Limited 927 Sturt Street BALLARAT VIC 3350 LEGAL ADVISORS Baker McKenzie 525 Collins Street Melbourne Victoria P a g e

3 Contents Page Directors report 4 Consolidated interim income statement 6 Consolidated interim statement of recognised income and expense 7 Consolidated interim balance sheet 8 Consolidated interim statement of cash flows 9 Notes to the interim financial statements 10 Directors declaration 13 Audit / review report 14 Lead auditor s independence declaration 15 3 P a g e

4 Directors report The directors present their report together with the consolidated financial report for the half-year ended 31 December 2007 and the review report thereon. Directors The directors of the Company at any time during or since the end of the half-year are: Name Period of directorship Non-executive Paul Chapman Appointed 18 April 2007 Chairperson Richard Laufmann Non-Executive Director Appointed 16 May 2007 Executive Steven Olsen Appointed 13 May 2007 Managing Director Principal activities The principal activity of the Group is minerals exploration. There were no significant changes in the nature of the Group s principal activities during the financial period. Operating results The Income Statement shows a loss after tax of $464,833 for the half-year ended 31 December Review of operations The Company s exploration activities are focused on copper-gold exploration in South Australia and gold exploration in Victoria. The company completed its initial public offering during the period which resulted in a capital raising of $7.0 million before costs. The Company was subsequently admitted to the official list of the ASX and commenced trading on 20 th of September 2007 under the ASX code of RXM. A number of project acquisitions were completed during the period, including the purchase of the Moonta South, Wandearah and the Cowell Joint Ventures interest from Avoca Resources Limited and the purchase of an exploration licence at St Arnaud from Goldsearch Limited. As a result of the acquisitions from the date of incorporation, the Company now owns the following exploration properties, as detailed in the Company s Prospectus issued on 17 th of August 2007; St Arnaud gold project in Victoria, Moonta South copper-gold project in South Australia, Wandearah copper-gold project in South Australia and the Cowell Joint Venture in South Australia. In addition, Rex is in the process of transferring the North Creswick exploration licence into the ownership of Rex, which will result in an issue of 1.0 million shares to Lihir Gold Limited once this transaction is complete. 4 P a g e

5 Drilling activities commenced in mid November 2007 within the Company s Moonta South licences at the Hillside copper-gold Prospect. Initial results from this drilling program were released to the ASX on 21 st of January 2008, highlighting the presence of copper mineralisation from the drill holes, including from 298m. Drilling activities were completed by mid December 2007 at the Hillside Prospect, and have subsequently re-commenced drilling at the St Arnaud Project in January Lead Auditor s Independence Declaration The lead auditor s independence declaration is set out on page 15 and forms part of the directors report for the half-year ended 31 December Dated at Ballarat this 29 th day of February Signed in accordance with a resolution of the directors: Steven Olsen Managing Director 5 P a g e

6 Consolidated interim income statement For the six months ended 31 December 2007 Note Half-year From 18 April Dec 2007 to 30 June 2007 $ $ Revenue 2,728 - Administrative expenses (121,749) (5,813) Prospectus expenses - (301) Depreciation expense (6,656) - Incorporation fees - (1,680) Employee benefits expense (320,450) - Marketing expenses (18,706) (2,754) Loss before income tax (464,833) (10,548) Income tax expense - - Net loss (464,833) (10,548) Net loss attributable to members of Rex Minerals Limited (464,833) (10,548) Loss per share Basic loss per share (cents) (1.23) (0.001) Diluted loss per share (cents) (1.23) (0.001) The income statement is to be read in conjunction with the condensed notes to the consolidated interim financial report set out on pages 10 to P a g e

7 Consolidated interim statement of changes in equity For the six months ended 31 December 2007 Attributable to equity holders of the Company Share Capital Reserves $ Reserves $ Retained Earnings $ Total Equity Balance at 18 April Issue of ordinary shares 776, ,950 Loss for the period - - (10,548) (10,548) Balance at 30 June ,950 - (10,548) 766,402 $ Balance at 1 July ,950 - (10,548) 766,402 Issue of ordinary shares 8,168, ,168,445 Issue of share options - 278, ,037 Loss for the period - - (464,833) (464,833) Balance at 31 December ,945, ,037 (475,381) 8,748,051 The amounts recognised in equity are disclosed net of tax. The statement of changes in equity is to be read in conjunction with the condensed notes to the consolidated interim financial report set out on pages 10 to P a g e

8 Consolidated interim balance sheet As at 31 December 2007 Half-year 31 Dec 2007 From 18 April 07 to 30 June 2007 Note $ $ Current assets Cash assets 6,271, ,396 Receivables 2, ,000 Other assets 31,713 10,000 Total current assets 6,305, ,396 Non-current assets Exploration and evaluation expenditure 5 2,430, ,000 Property, plant and equipment 323,271 - Total non-current assets 2,753, ,000 Total assets 9,059, ,396 Current liabilities Trade and other payables 297,144 5,994 Provisions 13,843 - Total current liabilities 310,987 5,994 Total liabilities 310,987 5,994 Net assets 8,748, ,402 Equity Issued capital 6 8,945, ,950 Reserves 278,037 - Accumulated losses (475,381) (10,548) Total equity 8,748, ,402 The balance sheet is to be read in conjunction with the condensed notes to the consolidated interim financial report set out on pages 10 to P a g e

9 Consolidated interim statement of cash flows For the six months ended 31 December 2007 Note Half-year 31 Dec 2007 From 18 April 07 to 30 June 2007 $ $ Cash flows from operating activities Cash paid to suppliers and employees (371,182) (4,554) Net cash (used in) from operating activities (371,182) (4,554) Cash flows from investing activities Exploration and evaluation payments (130,444) - Interest received 2,728 - Payments for environmental bonds - (10,000) Acquisition of property, plant and equipment (330,932) - Net cash used in investing activities (458,648) (10,000) Cash flows from financing activities Proceeds from the issue of share capital 7,155, ,950 Payment of transaction costs (486,555) - Net cash from (used in) financing activities 6,668, ,950 Net increase in cash and cash equivalents 5,838, ,396 Cash and cash equivalents at beginning of the period 432,396 - Cash and cash equivalents at period end 6,271, ,396 The statement of cash flows is to be read in conjunction with the condensed notes to the consolidated interim financial report set out on pages 10 to 12. Non cash financing and investing activities During the period, the Group issued 34,800,000 shares and 4,000,000 options in consideration for the acquisition of exploration and evaluation assets. This transaction is not reflected in the Statement of cash flows. Refer to note 5 and 6 for details. 9 P a g e

10 Condensed notes to the consolidated interim financial report 1. Reporting entity Rex Minerals Limited (the Company ) is a company domiciled in Australia. The consolidated interim financial report of the Company as at and for the six months ended 31 December 2007 comprises the Company and its subsidiaries (together referred to as the consolidated entity ) and the consolidated entity s interests in controlled entities. The consolidated annual financial report of the consolidated entity as at and for the year ended 30 June 2007 is available upon request from the Company s registered office at 24 Skipton Street, Ballarat, Victoria or at 2. Statement of compliance The consolidated interim financial report is a general purpose financial report which has been prepared in accordance with Australian Accounting Standards AASB 134 Interim Financial Reporting and the Corporations Act The consolidated interim financial report does not include all of the information required for a full annual financial report, and should be read in conjunction with the consolidated annual financial report of the consolidated entity as at and for the year ended 30 June This consolidated interim financial report was approved by the Board of Directors on 28 February Significant accounting policies Except as described below, the accounting policies applied by the entity in this interim financial report are the same as those applied by the entity in its financial report as at and for the year ended 30 June Equity-based compensation benefits Equity-based compensation will be recognised as an expense in respect of the services received, or as capitalised Exploration expenditure as appropriate. The fair value of options granted is recognised as an asset or expense with a corresponding increase in equity. The fair value is measured at grant date and recognised over the period during which the employees become unconditionally entitled to the options. The fair value at grant date is independently determined using a Black-Scholes option pricing model that takes into account the exercise price, the term of the options, the vesting and performance criteria, the impact of dilution, the non-tradeable nature of the option, the share price at grant date and expected price volatility of the underlying share, the expected dividend yield and the risk-free interest rate for the term of the option. 10 P a g e

11 4. Segment reporting The Company operates predominately in one geographical segment, being Australia, and in one industry, mineral mining and exploration. 5. Exploration and Evaluation Expenditure Half-year From 18 April Dec 2007 to 30 June 2007 Exploration and evaluation costs carried forward in respect of minerals $ $ exploration areas of interest: Exploration and evaluation phases 2,430, ,000 Opening balance 200,000 - Exploration expenditure incurred on acquiring assets 1,784, ,000 Exploration expenditure - South Australia 413,076 - Exploration expenditure - Victoria 33,584 - Closing balance 2,430, , Issued capital and reserves Movements in shares on issue: No. of Shares Issue Price $ $ Opening balance at 1 July ,765, ,950 Issue of ordinary shares 20/07/ , ,000 Issue of ordinary shares 20/07/ , ,000 Issue of ordinary shares 13/09/ ,000, ,000,000 Less costs to the IPO issue - - (486,555) Issue of ordinary shares 13/09/2007 6,000, ,500,000 Closing balance at 31 December ,565,000 8,945,395 Opening balance 18 April Issue of ordinary shares 31/05/2007 9,500, ,450 Issue of ordinary shares 18/06/2007 5,265, ,500 Issue of ordinary shares 29/06/2007 2,000, ,000 Closing balance at 30 June ,765, ,950 Movements in options on issue: No. of Options Exercise Price $ Expiry Date Opening balance at 1 July ,500,000 Issue of options 20/07/ , /06/2011 Issue of options 20/07/2007 1,200, /06/2011 Issue of options 13/09/2007 1,000, /06/2011 Issue of options 13/09/2007 1,000, /06/2011 Issue of options 03/12/ , /06/2011 Closing balance at 31 December ,500,000 Opening balance 18 April Issue of Options 31/05/2007 3,500, /06/2011 Closing balance at 30 June ,500, P a g e

12 Movements in share based payment reserve: Opening balance at 1 July Employee share based payments 119,037 Options issued in exchange for Exploration and Evaluation assets 159,000 Closing balance at 31 December , Subsequent Events The Company has entered into a new agreement with Stellar Resources Limited (Stellar), which will enable it to maintain 100% ownership of an iron ore target on EL3418 located on the Eyre Peninsula in South Australia. The previous agreement gave Stellar the ability to earn 75% of three exploration licences (EL 3978, EL 3148 and EL3418) with a focus on Iron-Oxide-Copper-Gold (IOCG) and Iron Ore targets. The new agreement will enable Stellar to earn 100% of two licences (EL 3978 and EL 3148) after expenditure of $300,000, with it maintaining 100% ownership of EL Rex will maintain a 2% net smelter return on EL 3978 and EL 3148 and Stellar will earn a 2% net smelter return on EL P a g e

13 Directors declaration In the opinion of the directors of Rex Minerals Limited ( the Company ): 1. the financial statements and notes set out on pages 6 to 12, are in accordance with the Corporations Act 2001 including: (a) (b) giving a true and fair view of the financial position of the consolidated entity as at 31 December 2007 and of its performance, as represented by the results of its operations and cash flows for the half-year ended on that date; and complying with Australian Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001; and 2. there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable. Dated at Ballarat this 29th day of February Signed in accordance with a resolution of the directors: Steven Olsen Managing Director 13 P a g e

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