TIDMAGLD
RNS Number : 1691B
Allied Gold Limited
14 February 2011
FOR IMMEDIATE RELEASE 14 February 2011
allied gold limited
("the Company")
Interim financial report for the six months ended 31 December
2010
Allied Gold lodged its Audited Interim Financial Report with the
ASX today for the period ended 31 December 2010. Extracts are as
follows:
DIRECTORS' REPORT
Your directors submit the consolidated interim financial report
of Allied Gold Limited and its controlled entities (together
referred to as the "economic entity" or "the Group") for the
half-year ended 31 December 2010.
DIRECTORS
The Directors of the Company in office during or since the end
of the half-year were:
Mr Mark V Caruso
Mr Sean Harvey
Mr Monty House
Mr Anthony Lowrie
Mr Gregory H Steemson
Mr Frank Terranova
All Directors have been in office since the start of the
half-year to the date of this report unless otherwise stated.
RESULTS
The consolidated profit of the economic entity after providing
for income tax was $9,388,992 (2009: loss $22,415,769).
DIViDENDS PAID OR RECOMMENDED
No dividends were paid or declared during or in respect of the
half-year ended 31 December 2010.
REVIEW OF OPERATIONS
Simberi Gold Oxide Project
Oxide operations
Mill throughput is running at a consistent 2.4 Mtpa and
recoveries were at 89.9% for the December half. Key operating
statistics for the mining and processing activities for the period
from 1 July 2010 to 31 December 2010 are summarised in the table
below:
Key operating statistic Unit of measure Volume
------------------------------- ----------------- ----------
Waste mined tonnes 1,091,703
------------------------------- ----------------- ----------
Ore mined tonnes 1,221,306
------------------------------- ----------------- ----------
Total mined tonnes 2,313,009
------------------------------- ----------------- ----------
Ore processed tonnes 1,153,504
------------------------------- ----------------- ----------
Grade g/t gold 1.1
------------------------------- ----------------- ----------
Recovery % 90
------------------------------- ----------------- ----------
Gold produced ounces 37,127
------------------------------- ----------------- ----------
Gold sold ounces 33,556
------------------------------- ----------------- ----------
Average realised gold price $ A$/oz 1,372
/ oz US$/oz 1,296
------------------------------- ----------------- ----------
Operating cash cost $ / oz A$/oz 732
US$/oz 693
------------------------------- ----------------- ----------
Expansion Studies
During 2011 the Simberi plant will be expanded towards 3.5 Mtpa
as part of an approved $32million budget to lift output to
100kozpa. Work progressed with the award of leach tank and new
diesel tank construction and delivery of materials and equipment
delivered to site, including civils materials, plate and structural
steel, and SAG mill and components. Civil works for the
construction of two new leach tanks and lime slaker will commence
in the March quarter. Installation of a new SAG mill, which has
been delivered to site, will commence in the September quarter.
Allied continues to review the options for a further incremental
expansion to process 5 Mtpa of oxide ore.
Plant Debottlenecking
The de-bottlenecking and optimisation initiatives the Company
commenced in 2010 have all but been completed. The final upgrade of
the Leach & CIL Tank motors, gearboxes & agitators is
ongoing and will be completed in the March quarter.
Pigiput Sulphide Study
The scope of work and $8m budget for advancing the Simberi
sulphide development to Bankable Feasibility Study (BFS) has been
agreed.
Extensional and definition drilling for sulphide resources
continued. Assays received to date indicated disbursed sulphide
mineralisation at Sorowar controlled structure and possibly
lithology, while at Botlu interesting intercepts have been recorded
including 27m @ 5.26g/t from 40m in hole SDH142. (Refer to
exploration summary for further detail)
Gold Ridge Project
The A$150m 120,000ozpa fully-funded redevelopment is on time and
on budget. Committed and incurred expenditure on the project is at
85% and the remaining $20 million budget incorporates a number of
operational and commissioning costs. Mining commenced in November
2010 and as at mid- January approximately 130,000 tonnes of ore was
on the ROM pad.
Construction - The redevelopment of the process plant comprises
refurbishment and expansion of the plant from 2.0Mtpa to 2.5Mtpa
throughput. Work by the project's EPC contractor includes:
o Installation of crushing and grinding; crusher and SAG mill
refurbishment due in January 2011.
o Classification and leaching; existing agitator gearboxes and
motors renewed/refurbished
o Installation of three additional leach tanks is complete,
cyclone tower and new cyclones installed.
o Gold recovery; new equipment including a new leach
reactor.
o Tailings disposal thickener has been completed as well as the
tailings detoxification tank. The tailings dam has been dewatered
and tailings and return water lines, and pump and choke stations
have been completed.
o Power has been installed by Aggreko ready to provide power in
January 2011.
o Raw process water will be available in January with
installation of new river pumps and re-establishment of the intake
weir.
Allied's owners scope of work includes earthworks, mine
pre-operations mine development, infrastructure rebuilding
including buildings and offices, accommodation village, purchase of
mining fleet and construction equipment, first fill and spares, and
employment of mine operations personnel and operations
training.
All construction associated earthworks have been completed.
Pre-mine operations have progressed well including; warehousing,
spares, first fills and reagents, site administration, mine and
plant operations personnel in place.
Mining - Gold Ridge took delivery of a larger mining fleet of
seven ridged frame 60 tonne haul trucks, two 85tonne hydraulic
excavators, and a mobile crushing and screening plant. The mine
haul roads
to the Valehaichichi and Namachamata pits have been established
and mining at Valehaichichi has commenced with approximately
130,000 tonnes of ore delivered to the ROM stockpile. Drilling and
blasting for mining commenced in December with 6 blasts
successfully completed quarter end.
Exploration
Simberi - Highlights included testing extensions of gold
mineralisation into Sulphide below the Sorowar pit, development of
a new 3D model of sulphide resources at Botlu.
On Simberi, 29 core holes (3,952m) and 27 RC holes (1651m) were
completed during the quarter.
Assays were received for 6,592 samples (including QC) with
further 516 samples awaiting analysis.
At Pigibo, RC hole RC1833 (32m @ 2.68g/t Au from 21m in OX, TR)
confirmed the down dip continuity of a similar intercept in RC1819
reported in the September 2010 quarter strikes SW towards Boltu.
Access was prepared for follow-up RC drilling.
At Botlu, two notable down hole intercepts of 27m @ 5.26g/t Au
from 40m in SU, including 2m @ 43.3g/t Au from 64m, (SDH142) and
33m @ 2.15g/t Au from 119m in SU (SDH163) helped confirm the new 3D
model of mineralisation in sulphide.
At Sorowar, Phase1 core drilling was completed with 12 holes /
2,152m completed. The drilling targeted mineralisation in the
Sulphide zone, below the Sorowar Oxide deposit. Significant
intercepts below the planned oxide pit included 20m @ 4.42g/t Au
from 111m in OX, SU (SDH149) and 34m @ 1.99g/t Au from 83m in TR,
SU (SDH152);
At SE Sorowar, better intercepts included 38m @ 1.15g/t Au from
28m in OX (SDH143) and 9m @ 16.5g/t Au from 128m, incl 1m @ 86.6g/t
and 1 m @ 30.1g/t, though a limited impact on resources is
expected.
Three holes, including RC1857 with 6m @ 1.57g/t Au from surface,
in series of 24 reconnaissance RC holes / 1,471m testing soil
anomalies along a track north of the Pigibo deposit, located
significant mineralization at surface. Follow-up channel sampling
in progress will assist planning to further RC drilling.
Tatau / Tabar Islands, PNG - On Tatau drilling was focused on
the Mt Letam and Talik prospects with 6 core holes for 1,171 metres
completed during quarter.
Three holes were completed at each of the Mt Letam and Talik
prospects. The holes at Mt Letam tested an IP chargeability anomaly
and gold associated with quartz veining found in a previously
drilled core hole. Quartz veining and a disseminated
sulphide-bearing breccia unit (the likely cause of the geophysical
anomaly) were intersected, and both associated with trace amounts
of gold. At Talik, two core holes confirmed weak alteration zones
in inter-fingered microdiorite intrusive and andesite both
associated with minor amounts of disseminated and fracture-hosted
pyrite and some veining.
Assays were received for 555 samples (including QC) and a
further 302 samples, from Talik holes, are awaiting analysis. No
significant gold intercepts reported to date.
Gold Ridge, Solomon Islands - In the December quarter 1,490m of
RC drilling was undertaken at the Namachamata deposit; with total
3,524 metres drilled since start-up completing the resource
definition program.
The RC drilling, now at approximate 20m intervals on 25m spaced
lines, is focused on confirmation of gold grades and determination
of metallurgical recovery indicators. The main purpose of the
drilling is to establish indicators of gold recovery for better
mine planning. Sample assays of the new drilling are generally in
line with previous results.
Assay results were received for 42 drill holes, with samples for
a further 19 holes pending. Better down hole intercepts included
30m @ 4.12g/t Au from surface (GRC0032), 25m @ 6.97g/t Au from
surface (GRC0033) and 36m @ 2.77g/t from 3m (GRC0054) occurring
within the designed pit.
An Induced Polarization (IP) survey of 2.5 line kilometres was
completed and has helped define moderate to steeply dipping
anomalies associated with both the Dawsons and Kupers deposits.
Corporate
Cash - Cash at bank as at 31 December 2010 was A$36.4 million. A
US$35 million 5 year loan from the IFC was drawn down in September
2010. Principal repayments for this loan will commence in November
2011.
Hedging - The company is hedge-free following the unwinding of
its hedge position in early 2010 and achieved an average gold price
of US$1370/oz in the December quarter on sales of 16,621 ounces. In
the interim results due in mid-February the company will adjust the
achieved average gold price downward by US$2.1 million to amortise
the loss that was realised on termination of the hedge book.
Lead Director - Mr Sean Harvey was appointed a Director in March
2010, and in-line with TSX and AIM governance principles was
appointed in mid-December as the Lead Independent Non-Executive
Director. The Board of Allied has resolved to put to shareholders
the issue of 1,500,000 unlisted options to Mr Harvey at an exercise
price of 50c expiring on 31 December 2011 with 1,000,000 vesting
immediately and 500,000 vesting upon the share price trading at or
above 70c for 5 consecutive days. The motion will be put to
shareholders at the Company's next general meeting of members.
SUBSEQUENT EVENTS
No matter or circumstance has arisen since 31 December 2010 that
has significantly affected, or may significantly affect:
a. The Group's operations in future financial years, or
b. The results of those operations in future financial years,
or
c. The Group's state of affairs in future financial years.
FUTURE DEVELOPMENTS, PROSPECTS AND BUSINESS STRATEGIES
Simberi Project, PNG
Pigiput Sulphide Study
The aim is to deliver the BFS by the end of 2011 with the
critical work to be completed incorporating (i) further sulphide
resource and reserve definition and metallurgical drilling and (ii)
roaster pilot plant test work. The BFS will be optimised in 2012 in
parallel with obtaining government permits to build and operate a
sulphide process plant and mine. The BFS will deliver an economic
study on a 2.5Mtpa flotation and roaster circuit, integrated with
the current expanded oxide and mining processing expansion
project.
Simberi Exploration Outlook
In the March quarter exploration activity will include core
drilling targeting sulphides beneath the Sorowar pit and further
extensions at Botlu. Core drilling at Pigiput and Botlu will
provide bulk samples for metallurgical test work for the sulphide
feasibility study. RC drilling will focus on the search for gold in
oxide resources around Pigibo and Sorowar deposits.
Tatau / Tabar Islands, PNG Exploration Outlook
In the March quarter the focus will be on core drilling at Mt
Tiro, Pepewo and Seraro prospects on Tatau Island and line cutting
and soil sampling for IP survey at Banesa prospect, Tabar
Island.
Gold Ridge Project, Solomon Islands
Plant Commissioning
Plant commissioning is imminent and first gold is due in the
March quarter.
Work is on time and on budget with approximately 85% of the
project budget committed and incurred. The remaining A$20 million
to be spent primarily involves commissioning and operations start
up costs and community/village construction activities in coming
months.
Gold Ridge Exploration Outlook
The targets identified by the IP survey conducted during the
December 2010 quarter will be followed up with infill surveying in
the March quarter. Drill targets to 150m can be tested with RC
holes, the deep targets would require core drilling. A core rig is
programmed to commence drilling in the March 2011 quarter.
OTHER INFORMATION
The registered office and principal place of business is Unit
B9, 431 Roberts Road, Subiaco WA 6008.
AUDITORS' INDEPENDENCE DECLARATION
The auditors' independence declaration under section 307C of the
Corporations Act 2001 is set out on page 7 for the half-year ended
31 December 2010 and forms part of the Directors' Report.
Signed in accordance with a resolution of the Directors.
Mark Caruso
Executive Chairman
Dated at Perth this 11th day of February 2011
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE HALF-YEAR ENDED 31 DECEMBER, 2010
Half-year Half-year
31 December, 31 December,
Note 2010 2009
Revenue 40,942,585 33,141,171
Cost of sales (32,574,869) (38,150,819)
-------------- --------------
Gross profit / (loss) 8,367,716 (5,009,648)
Unrealised losses on derivatives - (812,476)
Corporate expenses (4,950,553) (8,002,387)
Share based remuneration 12 1,252,500 (6,819,755)
Foreign exchange gain / (loss) 444,063 (112,698)
Financial income 6 4,776,722 180,483
Financial costs (501,456) (1,839,198)
-------------- --------------
Profit / (loss) before tax 9,388,992 (22,415,679)
Income tax benefit / (expense) - -
-------------- --------------
Profit / (loss) after tax attributable
to owners of Allied Gold Limited 9,388,992 (22,415,679)
Other comprehensive income / (loss)
Changes in the fair value of available
for sale financial assets 543,795 250,914
Changes in the fair value of cash flow
hedges - gross - (5,774,881)
Transfers to income statement from
cash flow hedging reserve - gross 5,437,338 4,917,149
Exchange differences on translation
of foreign operations - 1,141,391
Other comprehensive income / (loss)
for the half-year 5,981,133 534,573
-------------- --------------
Total comprehensive income / (loss)
for the half-year 15,370,125 (21,881,106)
-------------- --------------
Profit / (Loss) for the half-year is
attributable to:
Owners of Allied Gold Limited 9,388,992 (22,402,708)
Non-controlling interest - (12,971)
-------------- --------------
9,388,992 (22,415,679)
-------------- --------------
Total comprehensive income / ( loss)
for the half-year is attributable to:
Owners of Allied Gold Limited 15,370,125 (21,829,665)
Non-controlling interest - (51,441)
-------------- --------------
15,370,125 (21,881,106)
-------------- --------------
Profit / (Loss) per share for loss 0.90 (4.24)
attributable to the ordinary equity 0.89 (4.24)
holders of Allied Gold Limited
Basic earnings per share (cents)
Diluted earnings per share (cents)
The accompanying notes are an integral part of these interim
consolidated financial statements.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER, 2010
31 December 30 June
Note 2010 2010
CURRENT ASSETS
Cash and cash equivalents 36,486,444 85,525,391
Trade and other receivables 4,099,013 4,160,718
Inventories 21,328,397 11,795,370
Other assets 1,492,322 3,066,675
------------ -------------
Total Current Assets 63,406,176 104,548,154
------------ -------------
NON-CURRENT ASSETS
Available for sale financial assets 1,068,024 524,230
Property, plant and equipment 7 375,679,424 302,874,641
Exploration and evaluation expenditure 8 25,421,216 23,711,261
Total Non-Current Assets 402,168,664 327,110,132
------------ -------------
Total Assets 465,574,840 431,658,286
------------ -------------
CURRENT LIABILITIES
Trade and other payables 14,379,497 44,032,012
Borrowings 9 11,517,869 4,481,970
Provisions 10 1,170,332 1,008,116
------------ -------------
Total Current Liabilities 27,067,698 49,522,098
------------ -------------
NON CURRENT LIABILITIES
Borrowings 9 42,866,750 1,755,820
Provisions 10 9,799,544 9,315,217
------------ -------------
Total Non-Current Liabilities 52,666,294 11,071,037
------------ -------------
Total Liabilities 79,733,992 60,593,135
------------ -------------
NET ASSETS 385,840,848 371,065,151
------------ -------------
EQUITY
Issued capital 11 370,183,255 369,525,183
Reserves 21,828,055 17,099,422
Accumulated losses (6,170,462) (15,559,454)
------------ -------------
TOTAL EQUITY 385,840,848 371,065,151
------------ -------------
The accompanying notes are an integral part of these interim
consolidated financial statements.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE HALF-YEAR ENDED 31 DECEMBER, 2010
Available
Foreign for sale
Share-based exchange investments Cash Flow
Issued Accumulated payments translation revaluation Hedging
Capital Losses reserve reserve reserve Reserve Total
$ $ $ $ $ $ $
At 1 July 2010 369,525,183 (15,559,454) 16,604,976 5,427,787 503,997 (5,437,338) 371,065,151
Total
comprehensive
income for the
period
Profit for the
period - 9,388,992 - - - - 9,388,992
Changes in the
fair value of
available for
sale
financial
assets - - - - 543,795 - 543,795
Transfers to
income
statement
from cash
flow hedging
reserve -
gross - - - - - 5,437,338 5,437,338
- 9,388,992 - - 543,795 5,437,338 15,370,125
Transactions
with equity
holders in
their capacity
as equity
holders
Transfer value
of forfeited
options
previously
recognised - - (1,252,500) - - - (1,252,500)
Exercise of
options 658,072 - - - - - 658,072
------------ ------------- ------------ ------------ ------------ ------------ ------------
658,072 - (1,252,500) - - - (594,428)
------------ ------------- ------------ ------------ ------------ ------------ ------------
At 31 December
2010 370,183,255 (6,170,462) 15,352,476 5,427,787 1,047,792 - 385,840,848
------------ ------------- ------------ ------------ ------------ ------------ ------------
The accompanying notes are an integral part of these interim
consolidated financial statements.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE HALF-YEAR ENDED 31 DECEMBER, 2009
Available
Foreign for sale
Share-based exchange investments Cash Flow
Issued Accumulated payments translation revaluation Hedging
Capital Losses reserve reserve reserve Reserve Total
$ $ $ $ $ $ $
At 1 July 2009 173,098,363 (24,257,420) 9,776,417 (644,628) 136,389 (8,068,638) 150,040,483
Total
comprehensive
income for the
period
Loss for the
period - (22,415,679) - - - - (22,415,679)
Changes in the
fair value of
available for
sale
financial
assets - - - - 250,914 - 250,914
Changes in the
fair value of
cash flow
hedges -
gross - - - - - (5,774,881) (5,774,881)
Transfers to
net profit -
gross - - - - - 4,917,149 4,917,149
Exchange
differences
on
translation
of foreign
operations - - - 1,141,391 - - 1,141,391
- (22,415,679) - 1,141,391 250,914 (857,732) (21,881,106)
Transactions
with equity
holders in
their capacity
as equity
holders
Ordinary
shares
issued 205,906,932 - - - - - 205,906,932
Costs of
equity
raising (9,251,893) - - - - - (9,251,893)
Share based
payments - - 6,792,058 - - - 6,792,058
Conversion of
options 157,500 - - - - - 157,500
------------ ------------- ------------ ------------ ------------ ------------ -------------
196,812,539 - 6,792,058 - - - 203,604,597
At 31 December
2009 369,910,902 (46,673,099) 16,568,475 496,763 387,303 (8,926,370) 331,763,974
------------ ------------- ------------ ------------ ------------ ------------ -------------
The accompanying notes are an integral part of these interim
consolidated financial statements.
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE HALF-YEAR ENDED 31 DECEMBER, 2010
Half-year Half-year
31 December 31 December
2010 2009
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers 46,524,256 33,166,504
Payments to suppliers & employees (36,142,541) (42,260,483)
Interest received 694,094 178,099
Interest paid (3,219,275) (17,351)
-------------- -------------
Net cash from / (used in) operating
activities 7,856,534 (8,933,231)
-------------- -------------
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of plant & equipment (98,088,171) (7,201,607)
Development expenditure (3,520,723) (2,014,792)
Exploration and evaluation expenditure (1,709,955) (950,364)
Cash acquired on acquisition of controlled
entity - 3,573,927
-------------- -------------
Net cash used in investing activities (103,318,849) (6,592,836)
-------------- -------------
CASH FLOWS FROM FINANCING ACTIVTIES
Proceeds from equity placements - 159,545,451
Costs of issuing securities - (9,251,893)
Proceeds from exercising options 658,072 -
Finance lease payments (948,576) (2,534,784)
Proceeds from borrowings 53,772,845 3,332,823
Repayments of borrowings (7,045,139) -
-------------- -------------
Net cash from financing activities 46,437,202 151,091,597
-------------- -------------
Net (decrease) / increase in cash held (49,025,113) 135,565,530
Cash at beginning of the half-year 85,525,391 20,529,979
Effects of exchange rate changes on
the balance of cash and cash equivalents (13,834) 1,146,019
-------------- -------------
Cash and cash equivalents at end of
the half-year 36,486,444 157,241,528
-------------- -------------
The accompanying notes are an integral part of these interim
consolidated financial statements.
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL REPORT
1. Reporting entity
Allied Gold Limited ("the Company") is a company incorporated in
Australia and limited by shares, which are publicly traded on the
Australian Stock Exchange, the Toronto Stock Exchange and on AIM, a
market operated by the London Stock Exchange Plc. The interim
consolidated financial report for the half-year ended 31 December,
2010 comprises the Company and its controlled entities (together
referred to as "the Group").
The consolidated annual report of the Group as at and for the
year ended 30 June, 2010 is available upon request from the
Company's registered office at Unit B9, 431 Roberts Road, Subiaco
WA 6008.
2. Statement of compliance
The interim consolidated financial report is a general-purpose
financial report, which has been prepared in accordance with the
requirements of the Corporations Act 2001 and AASB 134 Interim
Financial Reporting. The interim consolidated financial report
complies with Australian Accounting Standards, which include
Australian equivalents to International Financial Reporting
Standards ('AIFRS') as they pertain to interim financial
reports.
The group financial statements of Allied Gold Limited also
comply with International Financial Reporting Standards ("IFRS") as
issued by the International Accounting Standards Board
("IASB").
The interim consolidated financial report does not include all
of the information required for a full annual financial report and
should be read in conjunction with the annual financial report of
the Group as at and for the year ended 30 June 2010 and should be
considered together with any public announcements made by the
Company during the half-year ended 31 December, 2010 in accordance
with the continuous disclosure requirements applicable in the
jurisdictions in which the Company's shares are traded.
3. Significant accounting policies
The significant accounting policies applied by the Group in this
interim consolidated financial report are the same as those applied
by the Group in its consolidated financial report as at and for the
year ended 30 June 2010.
4. Estimates
The preparation of the interim consolidated financial report in
accordance with Australian Accounting Standards requires management
to make judgements, estimates and assumptions that affect the
application of policies and reported amounts of assets,
liabilities, income and expenses. These estimates and associated
assumptions are based on historical experience and various other
factors that are believed to be reasonable under the circumstances,
the results of which form the basis of making the judgements about
the carrying values of assets and liabilities that are not readily
apparent from other sources. Actual results may differ from these
estimates.
In preparing this interim consolidated financial report, the
significant judgements made by management in applying the Group's
accounting policies and the key sources of estimation uncertainty
were the same as those that applied to the consolidated annual
financial report as at and for the year ended 30 June 2010.
5. Segment reporting
Management has determined that the operating segments based on
reports reviewed by the Executive Chairman and the Chief Financial
Officer that are used to monitor performance and make strategic
decisions. The business is considered from both a geographic and
functional perspective and has identified four reportable
segments.
Papua New Guinea consists of mining and processing and mineral
exploration activities undertaken at the Simberi project. Solomon
Islands also consists of mining and processing and mineral
exploration activities. As the project is not currently in
production, all costs related to the Solomon Islands project are
capitalised for financial reporting purposes. The performance of
the two geographic sectors is monitored separately.
The segment information presented to the Executive Chairman and
the Chief Financial Officer does not include reporting of assets
and liabilities or cash flows by segment.
5. Segment reporting (continued)
2010 Papua New Guinea Solomon Islands Consolidated
Mining and Mineral Mining and Mineral Mining and Mineral
Processing Exploration Total Processing Exploration Total Processing Exploration Total
$ $ $ $ $ $ $ $ $
Revenue
Sales to
external
customers 40,942,585 - 40,942,585 - - - 40,942,585 - 40,942,585
----------- ------------ ----------- ------------- ------------ ------------- ------------ ------------ ------------
Result
Segment
contribution 8,367,716 (3,979,595) 4,388,121 (13,106,310) (514,370) (13,620,680) (4,738,594) (4,493,965) (9,232,559)
----------- ------------ ----------- ------------- ------------ ------------- ------------ ------------ ------------
1In Papua New Guinea the mineral exploration costs are
capitalised for financial reporting in accordance with Australian
Accounting Standards. In the Solomon Islands both Mining and
Processing and Mineral Exploration costs were capitalised for
financial reporting in accordance with Australian Accounting
Standards
Solomon
2009 Papua New Guinea Islands Consolidated
Mining and Mineral Mineral Mining and Mineral
Processing Exploration Total Exploration Processing Exploration Total
$ $ $ $ $ $ $
Revenue
Sales to
external
customers 33,141,171 - 33,141,171 - 33,141,171 - 33,141,171
------------ ------------ ------------ ------------ ------------ ------------ ------------
Result
Segment
contribution (5,009,648) (2,014,792) (7,024,440) (1,364,790) (5,009,648) (3,379,582) (8,389,230)
------------ ------------ ------------ ------------ ------------ ------------ ------------
5. Segment reporting (continued)
The Executive Chairman and the Chief Financial Officer assess
the performance of the operating segments based on a measure of
contribution. This measure excludes items such as the effects of
equity settled share based payments, and unrealised gains /
(losses) on financial instruments. Interest income and expenditure
are not allocated to segments, nor are corporate expenses as these
activities are centralised.
Half-year to 31 December
2010 2009
Segment contribution (9,232,559) (8,389,230)
Capitalised expenditure 17,600,275 3,379,583
Unrealised loss on derivatives - (812,477)
Corporate expenses (4,950,553) (8,002,387)
Share based remuneration 1,252,500 (6,819,755)
Foreign exchange gain / (loss) 444,063 (112,698)
Financial income 4,776,722 180,483
Financial costs (501,456) (1,839,198)
------------ -------------
Profit / (loss) from continuing operations 9,388,992 (22,415,679)
------------ -------------
6. Financial income
Included in financial income for the half year ended 31 December
2010 is an amount of $4,000,000 being income derived by the Group
as a consequence of settling a financial liability for less than
its book value.
7. Property plant and equipment
Half-year to 31 December
2010 2009
Cost
Balance at 1 July 343,127,332 171,632,992
Acquired on acquisition of ASG - 3,773,602
Additions 78,996,315 9,216,494
------------- -------------
Balance at 31 December 422,123,647 184,623,088
------------- -------------
Accumulated depreciation
Balance at 1 July (40,252,691) (25,771,283)
Depreciation (6,191,532) (6,377,730)
------------- -------------
Balance at 31 December (46,444,223) (32,149,013)
------------- -------------
Net book value 375,679,424 152,474,075
------------- -------------
Balance at
December
31 June 30
2010 2010
Cost 422,123,647 343,127,332
Depreciation (46,444,223) (40,252,691)
------------- -------------
Net book value 375,679,424 302,874,641
------------- -------------
7. Property plant and equipment (continued)
Included in property assets capitalised under finance leases of
$18,157 134 (half-year ended 31 December, 2009: $3,560,403).
Included in property plant and equipment are assets under
construction amounting to $150,192,041 (half year ended 31
December, 2009: $16,580 763).
8. Exploration and evaluation expenditure
Half-year to 31 December
2010 2009
Cost
Balance at 1 July 23,711,261 11,115,743
Acquired on acquisition of ASG - 46,505,725
Additions 1,709,955 -
Effect of exchange rates - 2,293,237
------------- ------------
Balance at 31 December 25,421,216 59,914,705
------------- ------------
9. Borrowings
The following table sets out the movements in borrowings during
the half-year:
Half-year to 31 December
2010 2009
$ $
Balance at 1 July 6,237,790 5,940,368
New Issues
Finance lease liabilities (PGK and AUD) 15,361,958 3,332,823
Secured bank loan (USD) 38,410,887 -
Effects of foreign exchange (2,562,377) 192,962
Unsecured loans (AUD) 1,147,771 -
Repayments
Finance lease liabilities (PGK and AUD)
- principal component of repayments (766,395) (1,462,521)
Unsecured loans (AUD) (3,445,015) -
------------- ------------
Balance at 31 December 54,384,619 8,003,632
------------- ------------
1 Interest on the secured bank loan will be capitalised until
the construction of the Gold Ridge mine is completed.
10. Provisions
Half-year
to 31 December
2010 2009
Current $ $
Employee entitlements 1,170,332 868,260
---------- ----------
Non Current
Employee entitlements - 60,448
Rehabilitation and restoration 9,799,544 7,715,851
---------- ----------
9,799,544 7,776,299
---------- ----------
Movements in the provision for rehabilitation and restoration
during the half-year are set out below:
Half-year
to 31 December
2010 2009
Cost
Balance at 1 July 9,315,217 2,782,426
Acquired on acquisition of ASG - 4,679,737
Accrual of discount and effect of exchange
rates 484,327 253,688
---------- ----------
Balance at 31 December 9,799,544 7,715,851
---------- ----------
11. Contributed equity
(a) Ordinary shares
2010 2009 2010 2009
Number of Number of
shares shares $ $
Ordinary shares 1,042,206,569 1,036,712,735 370,183,255 369,910,902
============== ============== ============ ============
Balance at 1 July 1,040,132,142 472,643,276 369,525,183 173,098,363
Shares issued
through capital
raising - 456,699,000 - 159,387,951
Shares issued on
the conversion
of options 2,074,427 450,000 658,072 157,500
Shares issued to
acquire
controlled
entity - 106,920,459 - 46,518,981
370,183,255 379,162,795
Costs of capital
raising - (9,251,893)
-------------- -------------- ------------ ------------
Balance at 31
December 1,042,206,569 1,036,712,735 370,183,255 369,910,902
-------------- -------------- ------------ ------------
Ordinary shares entitle the holder to one vote per share and to
participate in dividends and proceeds on winding up of the company
in proportion to the number of and amounts paid on the shares
held.
11. Contributed equity (continued)
(b) Options
The table below sets out the movements in options during the
half-year:
Options
Options outstanding
outstanding Options at 31
Exercise at 1 July Options expired or Options December
Price Maturity 2010 issued cancelled exercised 2010
------------ ----------- ------------ -------- ------------- ------------ ------------
$0.80
options 31/12/2010 1,000,000 - (1,000,000) - -
$1 options 31/12/2010 1,000,000 - (1,000,000) - -
$1.25
options 31/12/2010 1,000,000 - (1,000,000) - -
$1.50
options 31/12/2010 1,000,000 - (1,000,000) - -
$2 options 31/12/2010 1,000,000 - (1,000,000) - -
$0.35
options 31/10/2011 30,012,500 - (2,362,500) (375,000) 27,275,000
$0.31
Options 31/12/2010 1,699,427 - - (1,699,427) -
$0.35
Options 31/12/2011 1,500,000 - - - 1,500,000
$0.50
Options 31/12/2013 37,500,000 - (7,500,000) - 30,000,000
$0.50
options 31/12/2013 1,175,000 - - - 1,175,000
------------ -------- ------------- ------------ ------------
76,886,927 - (14,862,500) (2,074,427) 59,950,000
------------ -------- ------------- ------------ ------------
Notes:
(i) Of the 27,275,000 options expiring 31 October 2011,
8,325,000 vest upon the share price trading at $A0.70 or above for
five consecutive days.
(ii) Of the 1,500,000 options expiring 31 December 2011, 500,000
vest upon the share price trading at $A0.70 or above for five
consecutive days.
(iii) The 31,175,000 outstanding options expiring 31 December
2013, had all vested as at 31 December 2010.
(iv) 7,500,000 options were forfeited during the period as the
vesting conditions were not met.
Each option is convertible into one ordinary share in the
company when exercised. Options do not participate in dividends and
do not give holders voting rights.
12. Share based payments
In 2006, the group established a share option program that
entitles key management personnel and senior employees to purchase
shares in the entity. The terms and conditions of the share option
programme are disclosed in the consolidated financial report as at
and for the year ended June 30, 2010.
Duringthe six-month period ended 31 December 2010 an amount of
$1,252 500 was transferred from the share based payment reserve to
the Statement of Comprehensive Income to reverse the value of
options previously expensed that were forfeited during the period
due to non-market vesting conditions not being met.
13. Related party transactions
Arrangements with related parties continue to be in place. The
nature and terms of transactions with related parties are
consistent with those described in the consolidated financial
report for the year ended 30 June, 2010.
14. Commitments and contingencies
Except for the matter noted below, there has been no significant
change to the Group's commitments and contingencies since 30 June
2010.
As at 31 December 2010 a member of the group was pursuing an
insurance claim in respect of an item of equipment that was
previously leased under the Dry Hire Agreement with Minesite
Construction Services Pty Ltd a related party of which Mr Mark
Caruso is a director, which was terminated on 1 April 2010.
Dependent on the outcome of the insurance claim, the Group may be
required to meet some or all of the amounts being claimed. The
group's maximum exposure under the claim is estimated to be
$400,000.
15. Subsequent events
No matter or circumstance has arisen since 31 December 2010 that
has significantly affected, or may significantly affect:
a. The Group's operations in future financial years, or
b. The results of those operations in future financial years,
or
c. The Group's state of affairs in future financial years.
DIRECTORS' DECLARATION
In the Directors' opinion:
1. The financial statements and notes set out on pages 8 to 20,
are in accordance with the Corporations Act 2001, including:
(a) complying with Accounting Standard AASB 134 Interim
Financial Reporting and the Corporations Regulations 2001 and other
mandatory professional reporting requirements; and
(b) giving a true and fair view of the consolidated entity's
financial position as at 31 December 2009 and of its performance
for the half-year ended on that date; 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.
This declaration is made in accordance with a resolution of the
Directors.
___________________________
Mark V Caruso
Chairman
Perth
11th February 2011
A copy of the full reports alond with the Auditors Report can be
viewed and downloaded on the Company's website
www.alliedgold.com.au and as a link to this announcement.
For further information, contact:
Simon Jemison Investor Relations & Media + 61 0418 853
922
Rebecca Greco Investor Relations, North America +1 416 839
8610
David Simonson c/. Merlin PR +44 20 7726 8400
Beaumont Cornish Limited
Roland Cornish
Beaumont Cornish Limited
T: +44 (0) 20 7628 3396
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR FMGMZLDGGMZG
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