Asiamet Resources Limited (the Group, the Company or ARS )

Transcription

1 Asiamet Resurces Limited (the Grup, the Cmpany r ARS ) Interim Results fr the Six Mnths Ended 30 June Asiamet Resurces Limited (AIM: ARS) is pleased t annunce its unaudited interim results fr the six mnths ended 30 June ( H1 r the Perid ). Chief Executive Officer statement Peter Bird, CEO said: Asiamet had a strng first half f. The year started n a strng nte with the receipt f the prductin licence fr the Beutng cpper-gld prphyry prject in early January. The receipt f this licence satisfied the final milestne in accrdance with the Jint Venture agreement and allwed the Cmpany t increase its wnership frm 40% t 80%, which cmpleted n 25 June. The Beutng prject has resurces in accrdance with JORC f 2.4Mt (5.35Blb) cpper, 2.1Mz gld and 20.6Mz silver n a 100%-wned basis and 1.92Mt (4.24Blb) cpper, 1.68Mz gld and 16.48Mz silver n an 80%-wned attributable basis), therefre the increase in wnership resulted in a significant increase in the cpper inventry fr the Grup. In April, the Cmpany cmmenced a 4,000 metre infill drilling prgramme at the Beutng prject and the results t date have been excellent with the best drill hle intersecting 456 metres f pervasive mineralisatin grading 1.06% cpper equivalent frm 10 metres belw surface, stpping in mineralisatin at 608 metres due t rig capacity. The results f this prgramme tgether with the metallurgical and getechnical test-wrk prgramme will dictate the Cmpany s develpment strategy fr Beutng. In March, we finalised the Cntract f Wrk negtiatins with the Gvernment f Indnesia, an imprtant milestne fr the BKM prject as it secures ur perating tenure fr the next 30 years. During the first quarter f, the Cmpany cntinued drilling activities at the BKZ plymetallic depsit where we intersected brad intervals f mineralisatin and in March we established a maiden JORC cmpliant Mineral Resurce Estimate frm nly a small drilling prgramme. The BKZ depsit is nly 800 metres nrth f the BKM prject and remains pen in multiple directins. The Cmpany believes the BKZ prject has the ptential t be a stand-alne prject, benefiting frm the significant infrastructure the Cmpany will build at the BKM prject. Simultaneusly, the Cmpany cntinued t make significant prgress with the feasibility study fr the BKM prject. This study has been the primary fcus fr much f the current half year with a number f peer reviews cmpleted tgether with initial ptimisatin wrk fr key technical areas including the pen pit and the heap leach. Capital and perating csts are being reviewed with a view t release t the market by the end f the current quarter. On a crprate level, Stephen Hughes resigned as a directr in May t return with his family t Canada, having spent 22 years in Indnesia. The Cmpany will cntinue t transitin frm explrer t develper and ultimately prducer and will see the management and leadership team evlve during this transitin. We will cntinue t right-size the rganisatin t meet the changing needs and manage the risks f the Cmpany ging frward. In June, Dminic Heatn was appinted t the Asiamet Bard. Dminic is a seasned mine-develper with significant experience in building mines in Suth East Asia and Indnesia. In particular he was instrumental in the develpment f the 300,000 z per annum Martabe gld mine in Sumatra and will be invaluable as we develp ur prjects. Our Grup cntinues t fcus n the rapid develpment f the BKM and Beutng prjects. We believe the Cmpany is very favurably psitined amngst peers as we have tw significant cpper 1

2 develpment prjects at a time when the cpper supply side is shwing signs f weakness while demand fr cpper remains rbust. H1 Operatinal Highlights Beruang Kanan Main (BKM) Cpper Prject Cmpleted Cntract f Wrk (CW) amendment negtiatins and secured lng term tenure fr the prpsed BKM Cpper develpment (see release dated 26 March ) Assay results frm the 2017/18 getechnical drilling prgramme (cmpleted as part f the feasibility studies) indicate the highest grade cpper mineralisatin drilled at BKM t date (see release dated 3 April ) Beruang Kanan Zinc (BKZ) Plymetallic Prspect Cmpleted a maiden Mineral Resurce Estimate fr the BKZ Plymetallic ( BKZ ) depsit (see release dated 16 May ): The Upper Plymetallic Zne Inferred Mineral Resurce cmprises: High Grade Dmain - 750,000 tnnes at 8.0% Zinc, 3.4% Lead, 50g/t Silver and 0.35g/t Gld cntaining 132Mlbs zinc, 57Mlbs lead, 1.2Mz silver and 8,400z gld at 4% Zn cut-ff grade; Lw Grade Dmain - 590,000 tnnes at 1.6% Zinc, 0.5% Lead, 13g/t Silver and 0.15g/t Gld cntaining 20 Mlbs zinc, 7Mlbs lead, 247Kz silver and 2,800z gld at 1% Zn cut-ff grade The Lwer Cpper Zne Inferred Mineral Resurce cmprises: High Grade Dmain - 1.1M tnnes at 1.1% Cpper and 13g/t Silver cntaining 26Mlbs cpper and 460,000 unces silver at a 0.5% cpper cut-ff grade Mineralisatin remains pen in multiple directins at bth the BKZ Upper Plymetallic Zne and the BKZ Lwer Cpper Zne and many targets with ptential t expand the Resurce base remain t be tested. Beutng (ARS 80% Equity) Equity interest in Beutng increased t 80% thrugh exercise f the ptin and delivery f recent milestnes including the key lng-term prductin licence required t advance prject t develpment stage (see release dated 25 June ). Key prductin licence granted fr 5.3Blb Cu, 2.1Mz Au, representing a majr de-risking milestne fr the Beutng prject securing lng-term licence fr +20 years (see release dated 8 January ). First diamnd drill hle f the drill campaign at Beutng East Prphyry Cpper - Gld Prject ("BEP") has intercepted near surface, high-grade cpper mineralisatin (see release dated 14 June ). Highlights include: BEU m at 1.06% CuEq (0.93% Cu, 0.15g/t Au) frm 10.0m; Shallw intersectin, with assay results cnfirming up t 2.49% cpper ver 2-metre sample intervals at BEP; Initial assays cnfirm that cpper mineralisatin in this hle at BEP is ptentially leachable; Metallurgical test wrk will cmmence sn. 2

3 H1 Crprate Highlights Raised apprximately $10 millin ( 7.2 millin) befre share issue csts at 11 pence per rdinary share (see release dated 13 March ) Resignatins f: Mr Raynard vn Hahn as Nn-Executive Directr (see release dated 17 January ) Mr Stephen Hughes as Executive Directr and Vice President Explratin (see release dated 24 May ) Appintment f Mr Dminic Heatn as a Nn-Executive Directr t the Bard (see release dated 1 June and 26 June ). On behalf f the bard Peter Bird Chief Executive Officer 25 September Ntice t reader These interim cndensed cnslidated financial statements f Asiamet Resurces Limited have been prepared by management and apprved by the Audit Cmmittee f the Bard f Directrs f the Cmpany. The Cmpany disclses that its external auditrs have nt reviewed these interim financial statements and ntes t financial statements. The Cmpany publishes its accunts in United States dllars ($) and all figures in the accunts and this annuncement are $ unless therwise nted. 3

4 Interim cndensed cnslidated statement f financial psitin As at 30 June Nte 30 Jun 31 Dec 2017 Unaudited Audited ASSETS Current assets Cash 4,007 3,079 Receivables and ther assets ,630 3,665 Nn-current assets Prperty, plant and Equipment Security depsit 3b TOTAL ASSETS 4,930 3,780 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Trade and ther payables 5 1,137 1,054 Other financial liabilities ,447 1,054 Nn-current liabilities Prvisin fr emplyee service entitlements Equity Share capital 7 9,287 8,528 Equity reserves 49,749 40,354 Other cmprehensive lss (12) (12) Accumulated Deficit (52,484) (46,293) Parent entity interest 6,540 2,577 Nn-cntrlling interest (3,253) (7) 3,287 2,570 TOTAL LIABILITIES AND EQUITY 4,930 3,780 The accmpanying ntes frm an integral part f these interim cndensed Cnslidated Financial Statements Asiamet Resurces Half year reprt 4

5 Interim cndensed cnslidated statement f cmprehensive lss (unaudited) Fr the 6 mnths ended Nte 30 Jun Jun 17 Expenses Accunting and audit (47) (6) Cnsultants (267) (278) Explratin and evaluatin 3a (3,700) (1,412) Legal and Cmpany Secretarial (150) (3) General and administrative (252) (203) Depreciatin (9) (18) Emplyee benefits (1,169) (668) Share based cmpensatin 7e (242) (97) (5,836) (2,685) Other items Freign exchange lss (355) (37) Gain n sale f subsidiary 3c (355) 671 Net lss (6,191) (2,014) Ttal cmprehensive lss fr the year (6,191) (2,014) Net lss attributable t: Equity hlders f the parent (6,040) (2,014) Nn-cntrlling interests (151) - Ttal cmprehensive lss attributable t: Equity hlders f the parent (6,040) (2,014) Nn-cntrlling interests (151) - Basic and diluted lss per cmmn share (0.01) (0.00) Weighted average number f shares utstanding (thusands) 878, ,765 The accmpanying ntes frm an integral part f these interim cndensed Cnslidated Financial Statements Asiamet Resurces Half year reprt 5

6 Interim cndensed cnslidated statement f cash flws (unaudited) Cash prvided frm (used fr): Fr the 6 mnths ended Nte 30 Jun Jun 17 Operating activities Lss fr the year (6,191) (2,014) Adjustment fr: Depreciatin 9 18 Share based cmpensatin Unrealised freign exchange lsses 1 - Gain n sale f subsidiary - (708) Changes in nn-cash wrking capital: Receivables and ther assets (30) (155) Value Added Tax ( VAT ) (7) - Trade and ther payables 83 (303) Prvisin fr emplyee service entitlements 40 - (5,853) (3,065) Investing activities Security depsits - (6) Purchase f prperty, plant and equipment (198) (7) Payment fr additinal investment in Beutng Resurces (3,246) - Prceeds n sale f subsidiary, net f cash sld 3c (3,444) 686 Financing activities (Repayment f) Prceeds frm related party lans - (233) Prceeds frm exercise f ptins and warrants Prceeds frm equity raising 10, Equity raising csts (663) - 10, Increase (Decrease) in cash 928 (1,610) Cash at beginning f the year 3,079 1,747 Cash at end f the yearsix mnths 4, The accmpanying ntes frm an integral part f these interim cndensed Cnslidated Financial Statements Asiamet Resurces Half year reprt 6

7 Interim cndensed cnslidated statement f changes in equity (unaudited) Number f shares Share capital Attributable t equity hlders f the parent Equity reserves Other Cmprehensive Lss Accumulated Deficit Ttal Nn- Cntrlling Interests 000 Ttal Balance at 1 January ,940 7,060 33,323 (2) (38,791) 1,590 (7) 1,583 Warrant exercises 5, Share based cmpensatin Cancelled shares (3) - - Lss fr the year (2,014) (2,014) - (2,014) Cntributin by parent in NCI Balance at 30 June ,353 7,114 33,567 (2) (40,805) (126) (7) (133) Balance at 1 January 856,764 8,528 40,354 (12) (46,293) 2,577 (7) 2,570 Equity raising 65, , ,082-10,082 Warrant exercises 2, Optin exercises 8, Equity raising csts - - (663) - - (663) - (663) Share based cmpensatin Lss fr the year (6,040) (6,040) (151) (6,191) Cntributin by parent in NCI (151) (151) Other transactins with NCI (3,246) (3,246) Balance at 30 June 932,663 9,287 49,749 (12) (52,484) 6,540 (3,252) 3,287 The accmpanying ntes frm an integral part f these interim cndensed Cnslidated Financial Statements Asiamet Resurces Half year reprt 7

8 1. General Infrmatin The interim cndensed cnslidated financial statements f the Cmpany fr the six mnths ended 30 June cmprising the Cmpany and its subsidiaries (cllectively, the Grup) were authrised fr issue in accrdance with a reslutin f the directrs n 25 September. The interim cndensed cnslidated financial statements fr the six mnths ended 30 June and 30 June 2017 were nt subject t review and were unaudited. The cmparative infrmatin fr the year ended 31 December 2017 was apprved by the Bard f directrs n 27 April and the Independent Auditr s Reprt n thse accunts was unqualified. Asiamet Resurces Limited (the Cmpany r Asiamet ) is a publicly listed cmpany incrprated under the laws f Bermuda. The Cmpany s shares are listed n the AIM market f the Lndn Stck Exchange ( AIM ) under the symbl ARS. The Cmpany s principal business activities include the acquisitin, explratin and develpment f mineral prperties. The Cmpany s principal mineral prperty interests are lcated in Indnesia. The presentatin currency f the Cmpany is the United States dllar. 2. Basis f preparatin and changes t the Grup s accunting plicies a) Statement f Cmpliance The interim cndensed cnslidated financial statements fr the six mnths ended 30 June has been prepared in accrdance with IAS 34, Interim financial reprting. The interim cndensed cnslidated financial infrmatin d nt include all the infrmatin and disclsures required in the annual financial statements and shuld be read in cnjunctin with the Grup s annual cnslidated financial statements as at 31 December 2017, which have been prepared in accrdance with Internatinal Financial Reprting Standards ( IFRS ). b) Changes in accunting plicies, accunting standards and interpretatins Except fr the belw, the accunting plicies adpted in the preparatin f the interim cndensed cnslidated financial statements are cnsistent with thse fllwed in the preparatin f the Grup s annual cnslidated financial statements fr the year ended 31 December The Grup has nt early adpted any ther standard, interpretatin r amendment that has been issued but is nt yet effective. Leases A lease is classified at the inceptin date as a finance lease r an perating lease. A lease that transfers substantially all the risks and rewards incidental t wnership t the Grup is classified as a finance lease. Finance leases are capitalised at the cmmencement f the lease at the inceptin date fair value f the leased prperty r, if lwer, at the present value f the minimum lease payments. Lease payments are apprtined between finance charges and reductin f the lease liability s as t achieve a cnstant rate f interest n the remaining balance f the liability. Finance charges are recgnised in finance csts in the statement f prfit r lss. A leased asset is depreciated ver the useful life f the asset. Hwever, if there is n reasnable certainty that the Grup will btain wnership by the end f the lease term, the asset is depreciated ver the shrter f the estimated useful life f the asset and the lease term. Asiamet Resurces Half year reprt 8

9 2. Basis f preparatin and changes t the Grup s accunting plicies (cntinued) Leases (cntinued) An perating lease is a lease ther than a finance lease. Operating lease payments are recgnised as an perating expense in the statement f prfit r lss n a straight-line basis ver the lease term. Ging cncern These interim cndensed cnslidated financial statements have been prepared n a ging cncern basis which assumes that the Cmpany will be able t realise its assets and discharge its liabilities in the nrmal curse f business in the freseeable future. The Cmpany is in the prcess f explring its mineral prperty interests and has nt yet determined whether any f its prperties cntain mineral reserves that are ecnmically recverable. The recverability f the amunts spent fr mineral prperties is dependent upn the existence f ecnmically recverable reserves, the ability f the Cmpany t btain the necessary financing t cmplete the explratin and develpment f its prperties, and upn future prfitable prductin r prceeds frm the dispsitin f the prperties. The peratins f the Cmpany will require varius licences and permits frm varius gvernmental authrities which are r may be granted subject t varius cnditins and may be subject t renewal frm time t time. There can be n assurance that the Cmpany will be able t cmply with such cnditins and btain r retain all necessary licences and permits that may be required t carry ut explratin, develpment and mining peratins at its prjects. Failure t cmply with these cnditins may render the licences liable t frfeiture. The Cmpany t date has met its cmmitments with respect t any and all bligatins t keep all licences and permits in gd standing. The Cmpany incurred a lss f $6.191 millin fr the six mnths ended 30 June (2017: $2.014 millin), and as f that date, the Cmpany had an accumulated deficit f $ millin (2017: $ millin). The Grup s psitin as at 30 June included cash f $4.007 millin, current assets f $0.623 millin and current liabilities f $1.447 millin. The Bard cnsiders that the Cmpany is a ging cncern and recgnises that additinal funding will be required t ensure that the Cmpany can cntinue t fund its peratins fr the 12 mnth perid frm the date f this financial reprt. The pssibility that the Cmpany may nt be able t raise the additinal financing required gives rise t a material uncertainty that may cast significant dubt upn the Grup's ability t cntinue as a ging cncern. Nthwithstanding the material uncertainty the Directrs are f the pinin, having made due and careful enquiry, that there are reasnable grunds t frm the view that the Cmpany will have sufficient funding fr its present requirements. In frming this view the Directrs have cnsidered in detail a number f ptential scenaris including funding alternatives as well as ther strategies in play including the fllwing: The Cmpany expects t finalise the Feasibility Study fr the BKM Prject in the secnd half f which when cmpleted is anticipated t supprt the develpment f the prject and in turn raising f additinal funding; The Cmpany is currently in discussins with financial institutins and strategic investrs fr ptential debt and/r equity funding; and T date the Cmpany has funded its activities thrugh issuance f equity securities and it is expected that the Grup will be able t fund its future activities thrugh further issuances f equity securities. Asiamet Resurces Half year reprt 9

10 2. Basis f preparatin and changes t the Grup s accunting plicies (cntinued) Ging cncern (cntinued) The financial statements have been prepared n the ging cncern basis fr the abve reasns. Accrdingly, the financial statements d nt include any adjustments relating t the recverability and classificatin f recrded assets r t the amunts and classificatin f liabilities that might be necessary shuld the cnslidated entity nt cntinue as a ging cncern. If additinal funding cannt be btained, there is a material uncertainty whether the Cmpany will be able t cntinue as a ging cncern. If the Cmpany is unable t cntinue as a ging cncern in the future, it may be required t make adjustments relating t the recverability and classificatin f recrded asset amunts and classificatin f liabilities in rder t realise its assets and extinguish its liabilities ther than in the nrmal curse f business and at amunts different frm thse stated in the financial reprt. 3. Explratin and evaluatin a) Explratin and evaluatin expenditures The details f explratin and evaluatin expenditures expensed during the perid ended 30 June and 30 June 2017 are as fllws: Nte 2017 KSK CW Administratin supprt External relatins Field supprt, vehicles, equipment Technical services 2, Tenements ,088 1,326 Beutng IUP Administratin supprt External relatins 10 2 Field supprt, vehicles, equipment Technical services Jelai IUP 3c Administratin supprt - 1 Field supprt, vehicles, equipment Ttal explratin and evaluatin expenditures 3,700 1,412 b) Security depsit 30 Jun 31 Dec 2017 Beutng IUP Asiamet Resurces Half year reprt 10

11 3. Explratin and evaluatin expenditures (cntinued) c) Jelai Prject East Kalimantan On 9 May 2017, the Cmpany cmpleted the sale f all the shares f KLG Singapre Private Limited ( KLG Sing ) t Ship Ocean Pte Ltd., a Singapre crpratin. KLG Sing wned 99.3% f PT Jelai Cahaya Minerals, the hlder f the Jelai IUP. Cnsideratin paid fr KLG Sing was $0.8 millin f which $0.1 millin was received and recrded as incme in A gain n dispsal f a subsidiary in the amunt f $0.708 millin was recrded as incme in Jun 30 Jun 2017 Cnsideratin received Cash Net assets dispsed f Cash - 1 Receivables - 2 Security depsit - 20 Trade and Accunts Payable - (26) Emplyee severance prvisin - (5) - (8) Gain n sale f subsidiary Receivables and ther assets 30 Jun 31 Dec 2017 Value Added Tax Receivables emplyee advances Receivables ther Prepayments Ttal receivables and ther assets Trade and ther payables 30 Jun 31 Dec 2017 Trade and ther payables 1, Trade and ther payables wed t related parties 1-74 Ttal trade and ther payables 1,137 1, The amunts wed t related parties were paid subsequent t 31 December Asiamet Resurces Half year reprt 11

12 6. Other financial liabilities 30 Jun 31 Dec 2017 Funds received in advance f share issue Ttal trade and ther payables Funds were received in advance frm ptin and warrant hlders fr the exercise f ptins and warrants. New shares in the Cmpany were issued n 2 July. Refer t nte 9 fr mre details. 7. Share capital and reserves a) Authrised share capital 30 Jun 31 Dec 2017 Authrised share capital () 12,000 10,000 N. f cmmn shares ('000) 1,200,000 1,000,000 Par value per share $ 0.01 $ 0.01 The Sharehlders f the Cmpany apprved the increase f the authrised share capital at the Annual General Meeting held n 25 June. b) Mvements in Fully paid share capital during the six mnths ended 30 June : Shares thusands N. 1 Jan Opening balance 856,764 8, Feb Exercise f ptins 2, Mar Exercise f ptins Mar Share issue 65, Mar Exercise f ptins Apr Exercise f warrants 2, May Exercise f ptins Jun Exercise f ptins 5, Jun Clsing balance 932,663 9,287 Asiamet Resurces Half year reprt 12

13 7. Share capital and reserves (cntinued) On 13 February, the Cmpany issued millin shares t the ptin hlders and received CDN millin (at a weighted average exercise price f CDN per ptin) as a result f the exercise f these ptins. On 9 March, the Cmpany issued millin shares t ptin hlders and received CDN millin (at a weighted average exercise price f CDN 0.05 per ptin) as a result f the exercise f these ptins. On 20 March, the Cmpany successfully placed millin shares f par value $0.01 each in the Cmpany at a price f GBP 0.11 per share raising grss prceeds f apprximately GBP 7.2 millin ($10 millin). On 29 March, the Cmpany issued millin shares t ptin hlders and received CDN millin (at a weighted average exercise price f CDN 0.05 per ptin) as a result f the exercise f these ptins. On 17 April, the Cmpany issued millin shares t ptin hlders pursuant t the exercise f warrants issued t brkers and received CDN millin (at a weighted average exercise price f CDN 0.06 per ptin) as a result f the exercise f these ptins. On 2 May, the Cmpany issued millin shares t ptin hlders and received CDN millin (at a weighted average exercise price f CDN 0.10 per ptin) as a result f the exercise f these ptins. On 6 June, the Cmpany issued millin shares t ptin hlders and received CDN millin (at a weighted average exercise price f CDN per ptin) as a result f the exercise f these ptins. c) Cmmn share purchase warrants The cntinuity f cmmn share purchase warrants fr the six mnths ended 30 June is as fllws: Expiry date Exercise price Balance Granted Exercised Expired Balance 31-Dec Jun-18 1 CAD 2 '000 '000 '000 '000 ' Apr ,148 - (2,148) Dec , , Apr , ,534 9,158 - (2,148) - 7,010 Weighted average exercise price All f the utstanding balance f warrants are exercisable. 2. Exercise price f CAD warrants will be cnverted t GBP equivalent at the date the warrants are exercised. 3. Calculated in GBP The weighted average remaining cntractual life f the cmmn share purchase warrants utstanding as at 30 June was 0.6 years. Asiamet Resurces Half year reprt 13

14 7. Share capital and reserves (cntinued) d) Stck Optins The cntinuity f stck ptins fr the six mnths ended 30 June is as fllws: Expiry date Weighted Average Exercise price Balance 31-Dec-17 Granted Exercised Expired Balance 30-Jun-18 Exercisable CAD 3 GBP '000 '000 '000 '000 '000 '000 1 Jul ,282 - (800) - 3,482 3,482 6 Oct ,050 - (1,550) - 1,500 1, Aug ,250 - (3,050) - 6,200 6,200 1 Nv ,500 - (2,950) - 7,550 7, Feb 22 1, , ,000 4,000 5 Oct , ,700 13,700 1 Jan 23 4, , ,500 1, Jan ,782 5,300 (8,350) - 45,732 44,782 Weighted average exercise price millin ptins vested n 20 February, 4 millin vests n 20 February 2019 and all expires n 20 February millin ptins exercisable at GBP 0.06, 2 millin at GBP 0.08, 2 millin at GBP 0.10 and 2 millin at GBP Exercise price f CAD ptins will be cnverted t GBP equivalent at the date the ptins are exercised millin ptins vested n 1 January, 1.5 millin ptins vests n 1 January 2019, 1.5 millin vests n 1 January 2020 and all expires n 1 January millin ptins exercisable at GBP 0.13, 1.5 millin at GBP 0.15 and 1.5 millin at GBP millin ptins vests n cmpletin f a base mdel fr BKM Prject, millin ptins vests n cmpletin f the BFS f the BKM prject and millin ptins vests n cmpletin f prject/develpment financing fr the BKM prject. All expires n 11 January Calculated in GBP. The weighted average remaining cntractual life f the stck ptins utstanding as at 30 June, was 2.7 years. e) Share based cmpensatin During the six mnths ended 30 June, the Cmpany recrded $0.242 millin (2017: $0.097 millin) in nn-cash share based cmpensatin expense fr ptins vesting in the year. The table belw lists the assumptins used in the Black-Schles pricing mdel t determine the fair value f the ptins: Grant date 1 Jan 11 Jan Risk free interest rate 1.02% 1.02% Expected vlatility 60% 60% Expected life 5 3 Expected dividend - - Freign exchange GBP/USD GBP/USD Freign exchange rate Fair value granted ($ 000) Number granted ( 000) 4, Fair value per ptin / warrant ($) Asiamet Resurces Half year reprt 14

15 8. Related parties There have been n new related party transactins ther than the arrangements that were in place at 31 December Fr details n these arrangements, please refer t the Grup s annual financial reprt as at 31 December Nn Cntrlling Interest On 25 June, the Cmpany cmpleted a payment f $3.246 millin (A$4.375 millin) t PT Media Mining Resurces ( EMM ) t acquire the remaining 50% f Beutng Resurces Pte Ltd. ( BRPL ) increasing its effective wnership in EMM frm 40% t 80%. The Cmpany wns Tigers Cpper Singapre N. 1 Pte Ltd, which nw wns 100% f the issued and utstanding shares f BRPL, which in turn wns 80% f the issued and utstanding shares f EMM, which hlds the Beutng IUP in Indnesia. The Cmpany is respnsible fr funding 100% f all csts related t each f BRPL and EMM until a bankable feasibility study has been cmpleted n the Beutng IUP. The Cmpany cntrls each f the entities and makes all decisins regarding wrk prgrams. 10. Operating lease cmmitments Prperty lease The Cmpany entered int a prperty lease agreement fr ffice space in Australia. The ttal rent bligatin ver the next five years is $0.598 millin with $0.068 millin due within ne year and $0.530 millin due after ne year but nt mre than five years. The leases are nn-cancellable leases with fiveyear terms, with rent payable mnthly in advance. Rental prvisins within the prperty lease agreement require the minimum lease payments be increased by 4% per annum. An ptin exists t renew the lease at the end f the five year term fr an additinal five years. 11. Subsequent events On 2 July, the Cmpany received ntificatin frm ptin hlders t exercise ptins ver millin new cmmn shares in the share capital f the Cmpany and has received ntificatin frm warrant hlders t exercise warrants ver millin new cmmn shares in the share capital f the Cmpany (the New Cmmn Shares ). The Cmpany issued the New Cmmn Shares t the ptin and warrant hlders and received CDN millin and GBP millin respectively (at a weighted average exercise price f CDN per ptin and CDN 0.10 per warrant) as a result f the exercise. On 20 July, the Cmpany received ntificatin frm ptin hlders t exercise ptins ver 1 millin new cmmn shares in the share capital f the Cmpany. The Cmpany issued the New Cmmn Shares t the ptin hlders and received GBP millin (at a weighted average exercise price f GBP 0.07 per ptin) as a result f the exercise f these ptins. Asiamet Resurces Half year reprt 15