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HAWSONS IRON LTD — Interim / Quarterly Report 2011
Mar 15, 2011
65053_rns_2011-03-15_45770452-80aa-45d4-b8e4-fa4f6b3893bc.pdf
Interim / Quarterly Report
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Carpentaria Exploration Limited ABN 63 095 117 981
INTERIM FINANCIAL REPORT
FOR THE HALF-YEAR ENDED 31 DECEMBER 2010
CORPORATE DIRECTORY
Board of Directors
Nick Sheard (Executive Chairman) Mike Chester (Non-Executive Director) Bob Hair (Non-Executive Director) Stan Macdonald (Non-Executive Director)
Company Secretary
Chris Powell
Principal and Registered Office
Level 6 345 Ann Street Brisbane Qld 4000
Solicitors
HWL Ebsworth Level 23, Riverside Centre, 123 Eagle Street Brisbane Qld 4000
PO Box 10919 Adelaide Street Brisbane QLD 4000
Telephone: +61 7 3220 2022 Facsimile : +61 7 3220 1291 Email: [email protected] Website: www.carpentariaex.com.au
Auditors
PKF Level 6, 10 Eagle Street Brisbane Qld 4000
Telephone: 07 3226 3555 Fax: 07 3226 3500 Website: www.pkf.com.au
Independent Accountants
BDO Kendalls Level 18, 300 Queen Street Brisbane Qld 4000
Share Registry
Link Market Services Limited Level 19 324 Queen Street Brisbane QLD 4000
Telephone: 1300 554 474 Facsimile: 02 9287 0303 Website: www.linkmarketservices.com.au
Investor enquires
Nick Sheard – Executive Chairman; or Chris Powell – Company Secretary Telephone: 07 3161 3801 Facsimile : 07 3161 3786 e-mail : [email protected]
ASX Code
Shares : CAP
CARPENTARIA EXPLORATION LIMITED
CONSOLIDATED INTERIM FINANCIAL REPORT FOR THE HALF–YEAR ENDED 31 DECEMBER 2010
| CONTENTS | |
|---|---|
| Directors’ Report | 3-7 |
| Statement of Comprehensive Income | 8 |
| Balance Sheet | 9 |
| Statement of Changes in Equity | 10 |
| Statement of Cash Flows | 11 |
| Notes to the Financial Statements for the half-year ended 31 December 2010 | 12-13 |
| Directors’ Declaration | 14 |
| Independent Auditor's Review Report | 15 |
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CARPENTARIA EXPLORATION LIMITED
CONSOLIDATED INTERIM FINANCIAL REPORT FOR THE HALF–YEAR ENDED 31 DECEMBER 2010
DIRECTORS' REPORT
Your directors present their report on C arpentaria Exploration Limited (the Company) and it s controlled entities (the Consolidated Entity) for the half-year ended 31 December 2010.
DIRECTORS
The names and details of the Compa n y’s directors in office during the financial half-year a n d until the date of this report are as follows. Directors were in office for the entire period unless otherwise stated.
Name Position Period of directorship Stuart Nicholas Sheard Executive Chairman Appointed March 2007 Stanley Alan Macdonald Non-E x ecutive Director Appointed April 2007 Robert William Hair Non-E x ecutive Director Appointed August 2007 Michael Peter Chester Non-E x ecutive Director Appointed January 2008
BACKGROUND
Carpentaria is a Queensland-based ex p loration company focused on the discovery and min i ng of iron ore, coal, tin base metal and gold deposits in Queen s land and New South Wales. Carpentaria (ASX Code: CAP) was listed on the ASX on 14 November 2007.
OPERATING RESULTS
For the half-year ended 31 December 2 010, the loss for the Consolidated Entity after provi d ing for income tax was $541,076 (2009: loss of $774,589).
Figure 1: Location of Carpentaria Exploration Limited Projects and Joint Ventures
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CARPENTARIA EXPLORATION LIMITED
CONSOLIDATED INTERIM FINANCIAL REPORT FOR THE HALF–YEAR ENDED 31 DECEMBER 2010
REVIEW AND RESULTS OF OPERATIONS
During the half-year Carpentaria Exploration Limited (ASX Code: CAP) maintained an aggressive exploration program. The Consolidated Entity is committed to progressing the Hawsons Iron Project and generating significant shareholder value from its diversified mining project portfolio.
During these six months Carpentaria completed its first pass exploration drilling, and announced a maiden resource comprising 1.4 billion tonnes at a magnetite Davis Tube Recovered (DTR) grade of 15.5%( using a cut-off DTR grade of 12%) completed a Scoping Study and commenced Prefeasibility Studies at the Hawsons Iron Project . The Inferred Resource contains iron concentrate of 220 million tonnes magnetite at a premium grade of 69.9% Fe and 2.5% SiO2, with no significant impurities. Bonython Metal Group Pty Ltd (BMG) currently has a 40% interest in this project which it can increase to 51% upon a cash payment of $25 million to Carpentaria and funding of a bankable feasibility study by 15 May 2012.
Guilford Coal Ltd. commenced drilling in the Galilee Basin on the FTB (Qld) Pty Ltd. (FTB) coal tenements Guildford holds FTB as to 80%. Under the arrangement Guildford expends the first $2.0m and thereafter Carpentaria contributes to maintain or dilutes its 20% holding. Unfortunately drilling was hampered by exceptional rainfall during the period.
At Euriowie , north of Broken Hill, rock chip sampling results of 12 separate pegmatite dykes were somewhat disappointing and showed that the Mt Euriowie dyke had the most potential for Tin. However, to complement Euriowie, a agreement was reached with Wolf Minerals limited whereby Carpentaria purchased a 100% interest in the Yanco Glen tenement application. The deal will be completed when the NSW Government grants title to Carpentaria.
In the Lachlan Fold Belt, drilling at the Glen Isla Project has been delayed by wet weather. A large IP target that could represent gold hosted in a pyritic body had been outlined. This project is being funded by Ramelius Resources Ltd., which is farming in to the project. Wet weather has also compromised access to the Temora Project so little work has been completed.
During the reporting period, three new exploration projects, comprising significant blocks of exploration title were obtained for in western NSW.
At the McDougall’s Project three contiguous exploration licences, comprising approximately 900 km2, covering NeoProterozoic strata the same age as that which hosts the Hawsons magnetite resource located 150 km to the south were granted. On the basis of geological correlation with the Hawsons stratigraphy the licences are considered prospective for non-magnetic hematite ironstone equivalents with the potential for direct shipping ore. The area has not been previously explored for iron ore but previous reconnaissance drilling directed to base metal search conducted by BHP and other groups encountered thick (+100m) sequences of red (hematite) siltstones with potential for economic iron mineralisation. Follow up of these prior drill hole intersections and of iron rich exposures evident in satellite data will be a priority for first phase filed exploration.
At Yanco Glen , The rights to acquire a 100% equity, in this 146 km2 exploration licence application (ELA) located 30 km north of Broken were purchased from Wolf Minerals Limited (WLF) during the quarter. The ELA was acquired to cover prospective Broken Hill block metasediments which contain 125 mineral occurrences including the entire Waukeroo Pegmatite Tin Field and the Yanco Glen stratabound scheelite (tungsten) Inferred Resource of 0.83 Mt of 0.21% WO3 . This 100% acquisition of this ELA by Carpentaria creates an unrivalled strategic position covering most all of the known and little explored tin as cassiterite in pegmatite’s at both Euriowie and Waukeroo fields within in the famous Broken Hill province. In addition to the tin and tungsten potential, a large number of base metal occurrences hosted by rock types that correlate to the host of the nearby world class Broken Hill massive sulphide deposit also merit investigation.
The Koonenberry Exploration Project comprises six contiguous exploration license applications (ELAs) totaling approximately 1,800 km2, centred 200 km north of Broken Hill. The applications cover exposed to shallowly concealed NeoProterozic to Lower Palaeozoic sediments, mafic volcanic and ultramafic intrusions that form part of the Koonenberry Geological Province prospective for ultramafic intrusion related nickel (Ni) - copper (Cu) sulphide, ultramafic intrusion hosted platinoid and sediment hosted polymetallic massive sulphide and quartz reef gold (Au) mineralisation. Prior exploration including 18,545 line km of 100m spaced airborne magnetic and radiometric data acquisition, geological mapping, focused ground electromagnetic surveying, +25,000 of shallow weathered bedrock geochemical sample and RC/DD drilling has been completed in the last five years by a major mining company and resulted in discovery of a previously unknown outcropping Cu-Ni prospect at Mount Arrowsmith East and a number of other significantly anomalous weathered bedrock Ni anomalies co-incident with high amplitude magnetic features that were not followed up. This prospect and the geochemical anomalies will be the focus for immediate exploration on grant of the ELA’s.
At the South Dam JV where BMG are farming in, an airborne magnetic and radiometric survey has been completed together with ground sampling and an experimental magnetic resonance survey. Results indicate that a the magnetic body is continuous and warrants drill testing to establish an iron ore exploration target.
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CARPENTARIA EXPLORATION LIMITED
CONSOLIDATED INTERIM FINANCIAL REPORT FOR THE HALF–YEAR ENDED 31 DECEMBER 2010
In north west Queensland the Mt Agate tenement which is being farmed out to ActivEX Ltd, returned anomalous drill results. Four reverse circulation (RC) drill holes for a total of 550m tested the Saddle Ridge anomaly the drilling returning anomalous copper results including hole AMA001 which returned the best results of 35 m @ 0.85% Cu, 0.04 g/t Au and 207 g/t Co including 6 m @ 3.20% Cu and 0.21 g/t Au and 206 g/t Co. Planned work by ActivEX will include geochemical sampling follow up these drill results and electrical geophysical surveying of Saddle Ridge and other nearby localities.
Future Exploration
At the Hawsons Iron Project a prefeasibility study is in progress to assess the potential development of a mining operation producing 6 million tonnes per annum (mtpa) of high grade magnetite concentrate (69.9% Fe) using existing infrastructure including power and rail with a later ramp up to 20 mtpa. Discussions regarding rail transport and shipping are underway and an environmental study is continuing. The prefeasibility study is scheduled to be completed in April 2011.
Carpentaria is gearing up to commence exploration in the Broken Hill district. An exploration team has been assembled to start exploring its 100% owned McDougalls Iron Project north of Broken Hill which is prospective for direct shipping ore (hematite) and possibly magnetite in similar geology as Carpentaria’s flagship Hawsons Iron Project. This work will include reconnaissance mapping, sampling to target drilling.
Carpentaria through its 20% holding of FTB (QLD) Pty Ltd (“FTB”), has elected to contribute to exploration funding pro rata with Guildford Coal Limited (ASX:GUF) for equity of the Hughenden Coal Project. The project is being explored aggressively, and two drilling rigs are operating on the project.
At Euriowie and the Apollyon lease, near Broken Hill, NSW, an exploration team will resume work on the tin potential which will be enhanced when the Yanco Glen tin/tungsten project acquisition is completed (awaiting exploration license (EL) grant). Sampling is expected to commence in March 2011 and follow up drilling will begin when targets are defined.
Carpentaria is gearing up for another large exploration program in the June half year, which will include both extensive field work and drilling on its own projects in NSW, and also through its joint venture partners in NSW, Queensland and South Australia.
AUDITOR INDEPENDENCE DECLARATION UNDER SECTION 307C OF THE CORPORATIONS ACT 2001
The Auditor’s Independence Declaration is attached and forms part of the Directors’ Report for the half-year ended 31 December 2010.
SUBSEQUENT EVENTS
Subsequent to 31 December 2010, the Company issued 4,400,000 ordinary shares and 1,300,000 options to employees pursuant to the CAP Employee Share Plan. The shares and options were issued as a result of the Consolidated Entity achieving Corporate KPI1, being a discovery and resource outline. This KPI was met on 17 December 2010. The shares and options were issued in March 2011 following board approval.
The options have an exercise price of $0.85 being the Volume Weighted Average Price ("VWAP") over the 10 days prior to 3 March 2011 plus 43% and expire on 3 March 2013. The options have no vesting conditions and the total value has been expensed in this half-year period.
The shares have an issue price of $0.60, being the VWAP over the 10 days prior to 3 March 2011. The shares have been issued in return for an interest free loan from the Consolidated Entity whereby the Consolidated Entity only has recourse to the shares. This issue of shares has been treated as an option grant in accordance with AASB2 “Share Based Payments”. In line with AASB2 “Share Based Payments”, the related expense for the shares is recorded from the date that agreement with the employee is met, being the date Corporate KPI 1 was met (in this case the announcement of a resource outline on 17 December 2010). As a result the Consolidated Entity has started expensing the options from that date. The loan has a repayment period of 2 years and the value of the equity instruments will be expensed across this period.
In addition, the Remuneration Committee has recommended that the Directors of Carpentaria Exploration Limited be entitled to a total of 6,000,000 ordinary shares for meeting the same Corporate KPI 1. These shares require shareholder approval and have not been issued by the Consolidated Entity at the date of this report. The value of these shares has been estimated in line with the requirements of AASB 2 “Share Based Payments” and, in the same way as the shares issued to employees above, the Consolidated Entity has began expensing this amount from 17 December 2010. The fair value of the shares will be reassessed at Grant Date, being when shareholder approval is received, so that the amounts recognised for services rendered in respect of the grant are ultimately based on the grant date fair value of the equity instruments.
5
CARPENTARIA EXPLORATION LIMITED
CONSOLIDATED INTERIM FINANCIAL REPORT FOR THE HALF–YEAR ENDED 31 DECEMBER 2010
Cash bonuses totaling $185,000 were also paid in March 2011 in relation to meeting Corporate KPI 1 on 17 December 2010 and have been accrued for in this financial report.
At the date of this report the Company had 98,741,301 ordinary shares and 6,450,000 options on issue.
Signed in accordance with a resolution of the Board of Directors
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S N Sheard Executive Chairman
Dated this 16[th] day of March 2011.
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CONSOLIDATED INTERIM FINANCIAL REPORT FOR THE HALF–YEAR ENDED 31 DECEMBER 2010
CARPENTARIA EXPLORATION LIMITED
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AUDITOR’S INDEPENDENCE DECLARATION
As lead auditor for the review of Carpentaria Exploration Limited for the half-year ended 31 December 2010, I declare that, to the best of my knowledge and belief, there have been:
-
(a) no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the review; and
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(b) no contraventions of any applicable code of professional conduct in relation to the review.
This declaration is in respect of Carpentaria Exploration Limited and the entities it controlled during the half-year.
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PKF
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Albert Loots
Partner
Dated this 16[th] day of March 2011.
Tel: 61 7 3226 3555 | Fax: 61 7 3226 3500 | www.pkf.com.au PKF | ABN 83 236 985 726 Level 6, 10 Eagle Street | Brisbane | Queensland 4000 | Australia GPO Box 1078 | Brisbane | Queensland 4001
The PKF East Coast Practice is a member of the PKF International Limited network of legally independent member firms. The PKF East Coast Practice is also a member of the PKF Australia Limited national network of legally independent firms each trading as PKF. PKF East Coast Practice has offices in NSW, Victoria and Brisbane. PKF East Coast Practice does not accept responsibility or liability for the actions or inactions on the part of any other individual member firm or firms.
Liability limited by a scheme approved under Professional Standards Legislation
7
CONSOLIDATED INTERIM FINANCIAL REPORT FOR THE HALF–YEAR ENDED 31 DECEMBER 2010
CARPENTARIA EXPLORATION LIMITED
Consolidated Interim Statement of Comprehensive Income For the half-year ended 31 December 2010
| Revenue Other income Employment benefit expenses Depreciation and amortisation expense Finance costs Impairment of exploration expenditure Other expenses Share of net loss from equity accounted associates Loss before income tax Income tax expense Loss after income tax expense Other comprehensive income Total comprehensive income Earnings per share Basic earnings/(loss) per share Diluted earnings/(loss) per share |
Half-Year Ended 31 December 2010 2009 $ $ 690,457 49,452 614,233 - (1,422,867) (386,886) (8,942) (14,867) (3,378) - (219,124) (113,838) (163,181) (308,450) (28,274) - (541,076) (774,589) - - (541,076) (774,589) - - (541,076) (774,589) Cents Cents (0.60) (1.15) (0.60) (1.15) |
Half-Year Ended 31 December 2010 2009 $ $ 690,457 49,452 614,233 - (1,422,867) (386,886) (8,942) (14,867) (3,378) - (219,124) (113,838) (163,181) (308,450) (28,274) - (541,076) (774,589) - - (541,076) (774,589) - - (541,076) (774,589) Cents Cents (0.60) (1.15) (0.60) (1.15) |
|---|---|---|
| (774,589) | ||
| - | ||
| (774,589) | ||
| - | ||
| (774,589) | ||
| Cents (1.15) (1.15) |
The Consolidated Interim Statement of Comprehensive Income should be read in conjunction with the Notes to the Interim Financial Statements.
8
CONSOLIDATED INTERIM FINANCIAL REPORT FOR THE HALF–YEAR ENDED 31 DECEMBER 2010
CARPENTARIA EXPLORATION LIMITED
| Consolidated Interim Balance Sheet As at 31 December CURRENT ASSETS Cash and cash equivalents Other receivables Other current assets TOTAL CURRENT ASSETS NON-CURRENT ASSETS Plant and equipment Exploration expenditure Intangible assets Equity accounted investments TOTAL NON-CURRENT ASSETS TOTAL ASSETS CURRENT LIABILITIES Trade and other payables Interest bearing liabilities Provisions TOTAL CURRENT LIABILITIES NON-CURRENT LIABILITIES Interest bearing liabilities TOTAL CURRENT LIABILITIES TOTAL LIABILITIES NET ASSETS EQUITY Share capital Reserves Accumulated losses TOTAL EQUITY |
December 2010 $ 11,538,188 1,695,063 127,124 13,360,375 188,511 3,561,030 6,207 46,726 3,802,474 17,162,849 599,508 26,922 95,032 721,462 89,496 89,496 810,958 16,351,891 16,938,222 704,266 (1,290,597) 16,351,891 |
June 2010 $ 5,106,175 779,316 158,242 |
|---|---|---|
| 6,043,733 | ||
| 55,930 4,573,758 6,207 75,000 |
||
| 4,710,895 | ||
| 10,754,628 | ||
| 772,421 - 89,627 |
||
| 862,048 | ||
| - | ||
| - | ||
| 862,048 | ||
| 9,892,580 | ||
| 10,408,009 234,092 (749,521) |
||
| 9,892,580 |
The Consolidated Interim Balance Sheet should be read in conjunction with the Notes to the Interim Financial Statements.
9
CARPENTARIA EXPLORATION LIMITED
CONSOLIDATED INTERIM FINANCIAL REPORT FOR THE HALF–YEAR ENDED 31 DECEMBER 2010
Consolidated Interim Statement of Changes in Equity For the half-year ended 31 December 2010
| Consolidated Entity Balance at 1 July 2009 Transactions with owners in their capacity as owners Share-based payment expense Comprehensive income Loss after income tax Other comprehensive income Balance at 31 December 2009 Balance at 1 July 2010 Transactions with owners in their capacity as owners Issue of share capital Share issue costs Share-based payment expense Transfers Comprehensive income Profit after income tax Other comprehensive income Balance at 31 December 2010 |
Share Capital Reserves Accumulated Losses Total $ $ $ $ |
|---|---|
| 8,612,949 474,510 (2,315,370) 6,772,089 - 192,840 - 192,840 - - (774,589) (774,589) - - - - |
|
| 8,612,949 667,350 (3,089,959) 6,190,340 |
|
| 10,408,009 234,092 (749,521) 9,892,580 6,512,492 - - 6,512,492 (36,211) - - (36,211) - 524,106 - 524,106 53,932 (53,932) - - - - (541,076) (541,076) - - - - |
|
| 16,938,222 704,266 (1,290,597) 16,351,891 |
The Consolidated Interim Statement of Changes in Equity should be read in conjunction with the Notes to the Interim Financial Statements.
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CONSOLIDATED INTERIM FINANCIAL REPORT FOR THE HALF–YEAR ENDED 31 DECEMBER 2010
CARPENTARIA EXPLORATION LIMITED
Consolidated Interim Statement of Cash Flows For the half-year ended 31 December 2010
| CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers Payments to suppliers and employees Interest received Interest paid Net cash used in operating activities CASH FLOWS FROM INVESTING ACTIVITIES Payments for property, plant & equipment Proceeds from sale of interest in exploration tenement Payments for exploration and evaluation Net cash (used in)/ provided by investing activities CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from issue of shares Capital raising expenses Repayment of finance leases Net cash provided by financing activities Net increase/(decrease) in cash and cash equivalents Cash and cash equivalents at the beginning of the financial year Cash and cash equivalents at the end of the financial year |
Half-Year Ended 2010 $ - (1,729,858) 306,235 (3,378) (1,427,001) (15,351) 2,000,000 (422,363) 1,562,286 6,342,692 (36,211) (9,753) 6,296,728 6,432,013 5,106,175 11,538,188 |
31 December 2009 $ 6,396 (498,861) 24,869 - |
|---|---|---|
| (467,596) | ||
| (16,599) - (606,083) |
||
| (622,682) | ||
| - - - |
||
| - | ||
| (1,090,278) 3,296,795 |
||
| 2,206,517 |
Non-cash transactions
During the period 370,000 ordinary fully paid shares at $0.46 per share ($169,800) were issued in consideration for land access to one of the Consolidated Entity’s tenements.
The Consolidated Entity used finance leasing facilities totaling $126,172 for the acquisition of property, plant and equipment.
The Consolidated Interim Statement of Cash Flows should be read in conjunction with the Notes to the Interim Financial Statements.
11
CARPENTARIA EXPLORATION LIMITED
CONSOLIDATED INTERIM FINANCIAL REPORT FOR THE HALF–YEAR ENDED 31 DECEMBER 2010
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Reporting Entity
Carpentaria Exploration 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 2010 comprises the Company and its controlled entities (together referred to as the “Consolidated Entity”).
Statement of Compliance
The consolidated interim financial report is a general purpose financial report which has been prepared in accordance with AASB 134 Interim Financial Reporting and the Corporations Act 2001.
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 2010.
This consolidated interim financial report was approved by the Board of Directors on 16 March 2011.
Accounting Policies
The accounting policies applied by the Consolidated Entity in the consolidated interim financial report are the same as those applied by the Consolidated Entity in its consolidated financial report as at and for the year ended 30 June 2010.
Estimates
The preparation of interim financial reports requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates.
In preparing this consolidated interim financial report, the significant judgments made by management in applying the Consolidated Entity’s accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial statements as at and for the year ended 30 June 2010.
| NOTE 2 SHARE CAPITAL Fully paid ordinary shares Ordinary Shares At the beginning of the year Exercise of options1 Share issue expenses Issue of shares2 Transfer from reserves At reporting date |
December June 2010 2010 $ $ 10,408,009 8,612,949 6,342,692 90,000 (36,211) - 169,800 1,271,802 53,932 433,258 |
December 2010 $ 16,938,222 December 2010 # 72,641,301 21,330,000 - 370,000 - |
June 2010 $ 10,408,009 |
|
|---|---|---|---|---|
| June 2010 # 67,500,000 500,000 - 4,641,301 - |
||||
| 16,938,222 10,408,009 |
94,341,301 | 72,641,301 |
1 21,330,000 options were exercised during the period for consideration of $6,342,692. Exercise prices ranged between $0.11 and $0.30 per share.
2 370,000 ordinary fully paid shares issued in consideration for land access to one the Consolidated Entity’s tenements.
Ordinary shares participate in dividends and the proceeds on winding up of the Company in proportion to the number of shares held. At shareholders meetings each ordinary share is entitled to one vote when a poll is called, otherwise each shareholder has one vote on a show of hands.
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CARPENTARIA EXPLORATION LIMITED
CONSOLIDATED INTERIM FINANCIAL REPORT FOR THE HALF–YEAR ENDED 31 DECEMBER 2010
NOTE 2 SHARE CAPITAL (continued)
Options
| Options | |
|---|---|
| Movements | |
| Expiry Date Exercise Price |
1 July 2010 Issued Exercised Expired 31 December 2010 |
| 30 June 2010 0.30 30 June 2010 0.30 30 June 2010 0.15 31 July 2012 0.114 26 November 2012 0.15 16 February 2013 0.25 27 May 2012 0.413 |
500,000 - (500,000) - - 20,680,000 - (20,680,000) - - 200,000 - - (200,000) - 850,000 - (150,000) - 700,000 2,000,000 - - - 2,000,000 600,000 - - - 600,000 - 1,850,000 - - 1,850,000 |
| 24,830,000 1,850,000 (21,330,000) (200,000) 5,150,000 |
NOTE 3 SEGMENT REPORTING
Reportable Segments
The Consolidated Entity operates in one segment, being the exploration, development, and production of minerals. All of the Consolidated Entity’s areas of operation are currently located in Australia.
Operating segments are identified on the basis of internal reports that are regularly reviewed by the chief decision maker in order to allocate resources to the segment and assess its performance.
NOTE 4 CONTINGENT LIABILITIES AND CONTINGENT ASSETS
There are no contingent liabilities or contingent assets at 31 December 2010 that require disclosure in the financial report.
NOTE 5 EVENTS AFTER BALANCE SHEET DATE
Subsequent to 31 December 2010, the Company issued 4,400,000 ordinary shares and 1,300,000 options to employees pursuant to the CAP Employee Share Plan. The shares and options were issued as a result of the Consolidated Entity achieving Corporate KPI1, being a discovery and resource outline. This KPI was met on 17 December 2010. The shares and options were issued in March 2011 following board approval.
The options have an exercise price of $0.85 being the Volume Weighted Average Price ("VWAP") over the 10 days prior to 3 March 2011 plus 43% and expire on 3 March 2013. The options have no vesting conditions and the total value has been expensed in this half-year period.
The shares have an issue price of $0.60, being the VWAP over the 10 days prior to 3 March 2011. The shares have been issued in return for an interest free loan from the Consolidated Entity whereby the Consolidated Entity only has recourse to the shares. This issue of shares has been treated as an option grant in accordance with AASB2 “Share Based Payments”. In line with AASB2 “Share Based Payments”, the related expense for the shares is recorded from the date that agreement with the employee is met, being the date Corporate KPI 1 was met (in this case the announcement of a resource outline on 17 December 2010). As a result the Consolidated Entity has started expensing the options from that date. The loan has a repayment period of 2 years and the value of the equity instruments will be expensed across this period.
In addition, the Remuneration Committee has recommended that the Directors of Carpentaria Exploration Limited be entitled to a total of 6,000,000 ordinary shares for meeting the same Corporate KPI 1. These shares require shareholder approval and have not been issued by the Consolidated Entity at the date of this report. The value of these shares has been estimated in line with the requirements of AASB 2 “Share Based Payments” and, in the same way as the shares issued to employees above, the Consolidated Entity has began expensing this amount from 17 December 2010. The fair value of the shares will be reassessed at Grant Date, being when shareholder approval is received, so that the amounts recognised for services rendered in respect of the grant are ultimately based on the grant date fair value of the equity instruments.
Cash bonuses totaling $185,000 were also paid in March 2011 in relation to meeting Corporate KPI 1 on 17 December 2010 and have been accrued for in this financial report.
At the date of this report the Company had 98,741,301 ordinary shares and 6,450,000 options on issue.
13
CARPENTARIA EXPLORATION LIMITED
CONSOLIDATED INTERIM FINANCIAL REPORT FOR THE HALF–YEAR ENDED 31 DECEMBER 2010
DIRECTORS' DECLARATION
In the Directors’ opinion:
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(a) the attached financial statements and notes as set out on pages 8 to 13 are in accordance with the Corporations Act 2001, including :
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(i) complying with Australian Accounting Standard AASB 134: Interim Financial Reporting and the Corporations Regulations 2001; and
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(ii) giving 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; and
-
(b) there are reasonable grounds to believe that the Consolidated Entity 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 directors.
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S N Sheard Executive Chairman
Dated this 16[th] day of March 2011.
14
Independent Auditor’s Review Report
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To the members of Carpentaria Exploration Limited
Report on the Half-Year Financial Report
We have reviewed the accompanying consolidated half-year financial report of Carpentaria Exploration Limited and its controlled entities (the consolidated entity), which comprises the consolidated balance sheet as at 31 December 2010, the consolidated statement of comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the half-year ended on that date, notes comprising a summary of significant accounting policies and other explanatory information, and the directors’ declaration of the consolidated entity. The consolidated entity comprises Carpentaria Exploration Limited and the entities it controlled at 31 December 2010 or from time to time during the half year ended on that date.
Directors’ Responsibility for the Half-Year Financial Report
The directors of the consolidated entity are responsible for the preparation of the consolidated half-year financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such control as the directors determine is necessary to enable the preparation of the consolidated half-year financial report that is free from material misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express a conclusion on the consolidated half-year financial report based on our review. We conducted our review in accordance with Auditing Standard on Review Engagements ASRE 2410 Review of an Interim Financial Report Performed by the Independent Auditor of the Entity, in order to state whether, on the basis of the procedures described, we have become aware of any matter that makes us believe that the financial report is not in accordance with the Corporations Act 2001 including: giving a true and fair view of the company’s financial position as at 31 December 2010 and its performance for the half-year ended on that date; and complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001. As the auditor of Carpentaria Exploration Limited, ASRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual financial report.
A review of a half-year financial report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Independence
In conducting our review, we have complied with the independence requirements of the Corporations Act 2001.
Conclusion
Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the consolidated halfyear financial report of the consolidated entity is not in accordance with the Corporations Act 2001 including:
(a) giving 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; and
(b) complying with Accounting Standard AASB 134 Interim Financial Reporting and Corporations Regulations 2001.
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PKF
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Albert Loots Partner
Dated at Brisbane this 16[th] day of March 2011
Tel: 61 7 3226 3555 | Fax: 61 7 3226 3500 | www.pkf.com.au PKF | ABN 83 236 985 726 Level 6, 10 Eagle Street | Brisbane | Queensland 4000 | Australia GPO Box 1078 | Brisbane | Queensland 4001
The PKF East Coast Practice is a member of the PKF International Limited network of legally independent member firms. The PKF East Coast Practice is also a member of the PKF Australia Limited national network of legally independent firms each trading as PKF. PKF East Coast Practice has offices in NSW, Victoria and Brisbane. PKF East Coast Practice does not accept responsibility or liability for the actions or inactions on the part of any other individual member firm or firms.
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