And its Controlled Entities HALF-YEAR FINANCIAL REPORT

Transcription

1 And its Controlled Entities HALF-YEAR FINANCIAL REPORT 31 DECEMBER 2010

2 CONTENTS Page Directors Report 2 Auditor s Independence Declaration 3 Consolidated Statement of Comprehensive Income 4 Consolidated Statement of Financial Position 5 Consolidated Statement of Changes in Equity 6 Consolidated Statement of Cash Flows 7 Notes to the Financial Statements 8 Directors Declaration 11 Independent Auditor s Review Report to the Members 12 CORPORATE DIRECTORY ABN Directors Company Secretary Registered office Principal place of business Share register Solicitors Bankers Auditors Colin Ikin Alan Marlow Robert Timmins Jay Stephenson Unit 6, 34 York Street NORTH PERTH WA 6006 Unit 6, 34 York Street NORTH PERTH WA 6006 Advanced Share Registry Services Steinepreis Paganin National Australia Bank BankWest William Buck Audit (WA) Pty Ltd

3 DIRECTORS REPORT Your Directors present their report on the consolidated group consisting Namibian Copper NL and the entities it controlled for the half-year ended 31 December DIRECTORS The names of Directors who held office during or since the end of the half-year: Colin Ikin Alan Marlow Robert Timmins All directors were in office for the entire duration unless otherwise stated. 2. OPERATING RESULTS The net consolidated loss after providing for income tax amounted to 256,158 (2009: 417,028). 3. REVIEW OF OPERATIONS Namibian Copper NL ( Namibian Copper ) was established to conduct base metal and gold exploration. During the half year, the Company continued its exploration activities at its Ongombo Project in Namibia. The Company also investigated a number of possible new project acquisitions. On 13 October 2010, the Company announced a placement of 9,600,000 Shares at 0.15 per Share together with one free attaching option exercisable at 0.20 per Option on or before 30 September The placement occurred on 15 October 2010, while the Options were issued following shareholder approval on 22 November AUDITOR S DECLARATION A copy of the independence declaration by the lead auditor under section 307C of the Corporations Act 2001 is included on page 3 of this half-year financial report. This report is signed in accordance with a resolution of the Board of Directors. Colin Ikin DIRECTOR Dated this 15th Day of March

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5 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE HALF YEAR ENDED 31 DECEMBER 2010 Note December 2010 December 2009 Revenue - - Finance income Bank interest 15,580 16,815 Less Expenses: Employee benefits expense - - Depreciation and amortisation expense (2,925) (3,610) Accounting and audit (37,569) (39,854) ASX and ASIC (17,860) (11,987) Exploration and evaluation costs written off - - Other expenses (213,384) (378,392) Loss before income tax expense (256,158) (417,028) Income tax - - Total loss after tax for the period (256,158) (417,028) Other comprehensive income: Currency translation differences arising from translation of foreign operations (402) (561) Total comprehensive income/(loss) for the period (256,560) (417,589) Loss attributable to non-controlling interest (731) (742) Loss attributable to members of the parent entity (255,427) (416,286) (256,158) (417,028) Total comprehensive income/(loss) attributable to: Non-controlling interest (731) (742) Members of the parent entity (255,829) (416,847) (256,560) (417,589) Earnings per share cents cents Basic and diluted loss per share (0.349) (0.602) The accompanying notes form part of these financial statements 4

6 CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2010 ASSETS Current Assets Note December 2010 June 2010 Cash and cash equivalents 1,798, ,366 Trade and other receivables 22,092 24,016 Other current assets 30,000 30,000 Total Current Assets 1,850, ,382 Non-current Assets Intangible Assets 1,966,537 1,966,621 Mineral exploration and evaluation expenditure 821, ,159 Plant and equipment 10,288 13,129 Total Non-current Assets 2,798,081 2,761,909 TOTAL ASSETS 4,648,579 3,564,291 LIABILITIES Current Liabilities Trade and other payables 41,909 60,217 Total Current Liabilities 41,909 60,217 TOTAL LIABILITIES 41,909 60,217 NET ASSETS 4,606,670 3,504,074 EQUITY Contributed equity 7 6,019,663 4,660,507 Reserves (2,010) (1,608) Accumulated losses (1,408,434) (1,153,007) Equity attributable to the members of Namibian Copper NL 4,609,219 3,505,892 Non-controlling interest (2,549) (1,818) TOTAL EQUITY 4,606,670 3,504,074 The accompanying notes form part of these financial statements. 5

7 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE HALF YEAR ENDED 31 DECEMBER 2010 Issued Capital Accumulated Losses Noncontrolling Interest Foreign Translation Reserve Total Equity Opening balance 1 July ,660,507 (618,701) (1,268) (1,373) 4,039,165 Loss attributable to members of Namibian Copper NL - (416,286) - - (416,286) Loss attributable to noncontrolling interest - - (742) - (742) Total other comprehensive income for the period (561) (561) Balance 31 December ,660,507 (1,034,987) (2,010) (1,934) 3,621,576 Issued Capital Accumulated Losses Noncontrolling Interest Foreign Translation Reserve Total Equity Opening balance 1 July ,660,507 (1,153,007) (1,818) (1,608) 3,504,074 Issue of shares, net of costs 1,359, ,359,156 Loss attributable to members of Namibian Copper NL - (255,427) - - (255,427) Loss attributable to noncontrolling interest - - (731) - (731) Total other comprehensive income for the period (402) (402) Balance 31 December ,019,663 (1,408,434) (2,549) (2,010) 4,606,670 The accompanying notes form part of these financial statements. 6

8 CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE HALF-YEAR ENDED 31 DECEMBER 2010 December 2010 December 2009 CASH FLOWS FROM OPERATING ACTIVITIES Payments to suppliers and employees (216,777) (457,975) Interest received 15,580 16,815 Net cash outflow from operating activities (201,197) (441,160) CASH FLOWS FROM INVESTING ACTIVITIES Payments for exploration expenditure (30,897) (32,320) Net cash outflow from investing activities (30,897) (32,320) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from the issue of shares 1,440,000 - Capital raising costs (80,844) - Net cash inflow from financing activities 1,359,156 - Net decrease in cash and cash equivalents 1,127,062 (473,480) Effects of exchange rate changes on cash and cash equivalents (77,022) - Cash and cash equivalents at the beginning of the period 748,366 1,355,325 NET CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD 1,798, ,845 The accompanying notes form part of these financial statements. 7

9 NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2010 NOTE 1: BASIS OF PREPARATION AND ACCOUNTING POLICIES Basis of preparation These general purpose financial statements for the interim half year reporting period ended 31 December 2010 have been prepared in accordance with Australian Accounting Standard AASB 134 Interim Financial Reporting, Australian Accounting Interpretations and other authoritative pronouncements of the Australian Accounting Standards Board and the requirements of the Corporations Act Compliance with Australian Accounting Standards ensures that the financial statements and notes also comply with International Financial Reporting Standards. This interim financial report is intended to provide users with an update on the latest annual financial statements of Namibian Copper NL ( the Group ). As such, it does not contain information that represents relatively insignificant changes occurring during the half-year within the Group. It is therefore recommended that this financial report be read in conjunction with the annual financial statements of the Group for the year ended 30 June 2010, together with any public announcements made during the half-year. The same accounting policies and methods of computation have been followed in this interim financial report as were applied in the most recent annual financial statements except for the adoption of the following new and revised Accounting Standards. Going Concern In preparing the financial statements the Directors note that the ability of the Consolidated Entity to continue as a going concern is dependent upon: the containment of operating expenses at a level that is commensurate with the Group s revenue generating potential; the ability of the Company to raise sufficient capital and equity; the Company continuing to enhance the value of the retained assets; exploitation of the exploration and evaluation tenements; and the disposal of assets at a fair value that generates adequate cash flow to the Group. The net consolidated loss after providing for income tax amounted to 256,158 (2009: 417,028) and had a net asset balance of 4,606,670 (2009: 3,621,576) for the period ended 31 December 2010, including a cash balance of 1,798,406 (2009: 881,845). The Company plans to undertake a fully underwritten non-renounceable Entitlement Issue of 1 Option for every 1 Share held at a price of 2 cents per Option to raise a further 1,472,000. The options will be exercisable at 0.20 per Option on or before 30 September It is the Company s intention to apply for quotation of the Options. 8

10 NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2010 NOTE 1: BASIS OF PREPARATION AND ACCOUNTING POLICIES Going Concern (contd) At the date of this report and having considered the above factors, the Directors are confident that the Group will be able to continue as a going concern and be able to realise their assets and extinguish their liabilities in the normal course of business and at the amounts stated in the financial report. The financial report does not include adjustments relating to the recoverability and classification of the recorded assets amounts or the amounts and classification of liabilities that might be necessary should the Group not continue as going concern. NOTE 2: DIVIDENDS No dividends have been declared or paid for the half-year ended 31 December NOTE 3: OPERATING SEGMENTS Management has determined that the Group has one reportable segment, being mineral exploration in Namibia, which is based on the internal reports that are reviewed and used by the Board of Directors (chief operating decision makers) in assessing performance and determining the allocation of resources. As the Group is focused on mineral exploration, the Board monitors the company based on actual versus budgeted exploration expenditure incurred by area of interest. This internal reporting framework is the most relevant to assist the Board with making decisions regarding the Group and its ongoing exploration activities, while also taking into consideration the results of exploration work that has been performed to date. Revenue by geographical region The Company has not generated revenue from operations, other than interest income derived from deposits held at call with banks in Australia. Assets by geographical region The location of segment assets is disclosed below by geographical location of the assets. December 2010 June 2010 Australia 1,726,754 2,782,132 Namibia 2,921, ,159 Total assets 4,648,579 3,564,291 NOTE 4: EVENTS SUBSEQUENT TO THE END OF THE REPORTING PERIOD At the date of this report there were no subsequent events of a material nature that require disclosure in this report. 9

11 NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2010 NOTE 5: CONTINGENCIES There are no contingent assets or liabilities that require disclosure at the time of this report. NOTE 6: CONTRIBUTED EQUITY (a) Share Capital December 2010 June ,825,001 Fully paid ordinary shares (June 2010: 69,225,001) 6,019,663 4,660,507 6,019,663 4,660,507 (b) Fully Paid Ordinary Shares Balance at beginning of the year 4,660, ,507 Issuance of shares during the year 1,440,000 - Share Issue Costs (80,844) 4,060,000 Balance at end of the year 6,019,663 4,660,507 In October 2010, the Company issued 9,600,000 ordinary shares at 0.15 per share, together with one free attaching option exercisable at 0.20 per Option on or before 30 September

12 DECLARATION BY DIRECTORS The directors of the company declare that: 1. The financial statements and notes set out on pages 4 to 10 are in accordance with the Corporations Act 2001, including: (a) comply with Accounting Standards AASB 134 Interim Financial Reporting; and (b) give a true and fair view of the consolidated entity s financial position as at 31 December 2010 and of its performance for the half year ended on that date. 2. In the directors opinion, there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable. This declaration is made in accordance with a resolution of the Board of Directors and is signed for and on behalf of the directors by: Dated this 15th day of March, Colin Ikin Director 11

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