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LAKE RESOURCES N.L. Annual Report 2006
65240_rns_2006-08-29_0c863313-971f-4347-8b78-76913350fdeb.pdf
Annual Report
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ABN 49 079 471 980
FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2006
Lake Resources NL
A RN 49 079 471 980
NOTICE OF ANNUAL GENERAL MEETING
NOTICE IS HEREBY GIVEN that the ANNUAL GENERAL MEETING of Lake Resources NL will be held at the Registered Office of the Company, Level 2, 183 North Quay, Brisbane Old, on Wednesday 29 November 2006 at 4 p.m.
BUSINESS
- To receive, consider and adopt the financial report of the company for the year ended 30 $1.$ June 2006 and the reports by directors and auditors thereon.
-
- To elect directors:
Mr Ross Johnston retires by rotation in accordance with the provisions of the constitution and, being eligible, offers himself for re-election.
- To appoint auditors:
That in accordance with section 327(2) of the Corporations Act, the Company immediately appoint Robertsons Audit & Assurance Pty Ltd as auditor of the Company.'
(Refer to Explanatory Statement below)
- To increase total directors' fees:
To consider and, if thought fit, pass the following resolution as an ordinary resolution:
'That total directors' fees in any year be increased from \$45,000 to \$60,000'
(Refer to Explanatory Statement below)
- General: To transact any business which may be lawfully brought forward.
By Order of the Board
Pt Sult.
Peter Gilchrist Secretary 29 August 2006
A member entitled to attend and vote is entitled to appoint a proxy to attend and vote in his/her stead. That person need not be a member of the company, but should be a natural person over the age of 18 years. Forms must be lodged at the registered office of the company not less than 48 hours before the timing of the meeting.
EXPLANATORY STATEMENT RE AGENDA ITEM 3
Appointment of Auditor
The Federal Government Corporations Law Economic Reform Program ('CLERP") enacted in 2004 allows for auditors to incorporate as an authorised audit company.
The company's existing auditor, Robertsons Chartered Accountants (RCA), have undertaken this incorporation process and have Australian Securities and Investment Commission (ASIC) approval to conduct future audits in the authorised audit company entity Robertsons Audit & Assurance Pty Ltd (RAA).
Consequently, RCA/RAA approached the company seeking to move the audit from RCA to RAA.
The Board supports the move of auditor from RCA to RAA, as it is in effect an administrative matter only. The statutory duties and responsibilities of the auditor do not change. The Board reviewed the matter and is satisfied that the interests of shareholders are maintained.
ASIC requires that any such move be approved by shareholders at an AGM. The Board recommends shareholders vote in favour of the resolution.
EXPLANATORY STATEMENT RE AGENDA ITEM 4
Increase in Directors' Fees
Total directors' fees remain below those for comparable companies. The increase from \$45,000 to \$60,000 per annum is considered necessary to bridge part of the gap to market rates for directors of exploration companies.
CORPORATE GOVERNANCE STATEMENT
This statement outlines the main corporate governance practices in place during the financial year, which comply with the ASX Corporate Governance Council recommendations, unless other wise stated. The small size of the company and the specialised nature of the exploration industry has meant that some of the recommendations have needed to be modified in their application, while still trying to keep faith with the underlying principles of the recommendations.
Board of Directors
Responsibilities
The Board is responsible for the overall Corporate Governance of the company, including the strategic direction, establishing goals for management and monitoring the achievement of those goals. The responsibilities of the Board are defined in the board charter.
Composition
The Board currently has three directors, comprising one independent non-executive chairman and two executive directors. No director is a substantial shareholder of the company. This Board composition does not have a majority of non-executive directors and does not comply with the ASX Corporate Governance Council recommendations. The addition of another two non-executive directors for a company of this size is not considered practical by the Board. The Chairman is elected by the Board and is an independent director. The composition of the Board is reviewed on an annual basis by the Chairman to ensure that the Board has the appropriate mix of expertise and experience. The size of the company and the specialist nature of the exploration industry have generally led shareholders to place importance on increasing shareholder value by having a Board with strong industry experience. The nature of exploration funding has also led to shareholders preferring directors to be directly involved in the provision of seed capital.
Because of the size of the company, it is regarded generally as more efficient to have the whole Board acting as the various Board committees.
Nomination and Election of Directors
When a vacancy arises, or where it is considered that the Board would benefit from the services of a new Director with particular skills, the Board will select a panel of suitable candidates. The Board will then appoint the most suitable candidate who must stand for election at the next general meeting of shareholders.
Independent Advice
The company has well-established procedures enabling any Director or committee of the Board to seek external professional advice as considered necessary, at the company's expense. Prior written approval of the Chairman is required, but this will not be unreasonably withheld.
Risk Management
The Board sets the framework for the Company's long-term success, approving its annual budget, assessing business risks and providing overall policy guidance. The Board monitors safety and environmental performance on a continuing basis and has systems in place to review company controls and to ensure compliance with laws and ethical behaviour.
Remuneration Policy
The company has no fulltime employees. Contract services are purchased at market rates. Where possible, contract employees are remunerated using combination of cash and company shares. The remuneration of all directors is detailed in Note 5 of the Financial Report.
CORPORATE GOVERNANCE STATEMENT (continued)
Trading Policy
The company's policy regarding directors and employees trading in its securities is set by the Board. The policy restricts directors and employees from trading in the company's securities for a period of fourteen days either side of announcements and director and shareholder meetings, and from acting on material information until it has been released to the market and adequate time has been given for this to be reflected in the securities' prices.
Performance Evaluation
The Board monitors the composition and performance of Board members on an ongoing basis.
Financial Reporting
The small size of the company, with three directors and an accountant as the only persons handling company operations, other than specialist exploration contractors, means that there is close and direct contact in all aspects of implementing and monitoring all financial systems and reporting. The board is small and acts as a whole as the audit committee.
Communications with shareholders
As an exploration company, there is regular reporting to shareholders through the ASX Periodic Disclosure requirements, which call for quarterly operational and cash flow reporting, and the Continuous Disclosure requirements, which require immediate reporting of material events, particularly in relation to exploration progress. This reporting is additional to more conventional reporting by all companies of half-yearly and annual financial results.
A comprehensive website is maintained. All company announcements are approved by the Board.
During the financial year the company has complied with the ASX Corporate Governance Council Principles of Good Corporate Governance, other than in relation to the matters below:-
| Principle | Recommendation | Notification of Departure | Explanation of Departure |
|---|---|---|---|
| Ref | Ref | ||
| 2 | 2.1 | The board does not have a | One of the three directors is independent, |
| majority of independent | but the board believes it is not appropriate | ||
| directors | to appoint an additional two independent | ||
| directors to a company of this size. | |||
| $\mathcal{D}$ | 2.4 | The board does not have a | The whole board takes this role because of |
| nomination committee. | its smaller size | ||
| 4 | 4.2/4.3 | The board does not have | As above |
| an audit committee. | |||
| ∣ Q. | 9.2 | The board does not have a | As above |
| remuneration committee. |
ABN 49 079 471 980
DIRECTORS' REPORT
Your directors present their report of the company for the year ended 30 June 2006.
Directors
The directors of the company at any time during or since the end of the year are:
| Attended | Meetings Meetings Eligible to Attend |
|
|---|---|---|
| R Johnston - Chairman (Independent Director) | ||
| J.C. Clavarino - Exploration Director | ь. | b. |
| P.J. Gilchrist - Managing Director | b. | |
| K Foots (Independent Director) - Resigned 29/8/05 |
Directors have been in office since the start of the financial year to the date of this report unless otherwise stated.
Because of the small size of the company, the board of directors has not formed an audit committee as all board members take an active role in all audit matters.
Company Secretary
The company secretary of company during the year has been PJ Gilchrist.
Principal Activities
The principal activity of the company in the course of the year was mineral exploration in Pakistan and Argentina.
There were no significant changes to the nature of the principal activities of the company during the financial year.
Operating Results
The operating loss after applicable income tax was \$118,646 (2005: loss \$18,080). Refer also to the Chairman's Report.
Dividends
No dividend has been proposed or paid during the financial year.
ABN 49 079 471 980
DIRECTORS' REPORT
Review of Operations
During the year the company's seed capital investments were progressively liquidated to fund future exploration. Initial drilling was undertaken on the Pakistan areas and a second round of drilling is being planned for 2006/07. Regional exploration in Northern Argentina identified a number of geological targets worthy of further investigation.
Significant Changes in State of Affairs
Apart from matters referred to under Review of Operations, there were no significant changes in the state of affairs.
Future Developments, Prospects and Business Strategies
The company will continue its current mineral exploration programme in Pakistan and Argentina.
Financial Position
The company has \$2.3m in cash assets and is well placed to carry out its exploration strategies.
Share Options
At the date of this report, there were no share options over unissued ordinary shares of the company.
Non-Audit Services
The auditors did not provide non-audit services to the company during the financial year.
All non-audit services are reviewed and approved by the Board prior to commencement to ensure they do not adversely affect the integrity and objectivity of the auditor or general principles relating to auditor independence.
Officers and Auditors Indemnification
During the financial period the company paid an insurance premium in respect of a contract insuring the directors of the company, the company secretary and all executive officers of the company against a liability incurred as such by a director, secretary or executive officer to the extent permitted by the Corporations Act 2001. The amount of the premium was \$15,171 for all directors and officers.
The company has not otherwise, during or since the financial year, indemnified or agreed to indemnify any officer or auditor of the company against a liability incurred as an officer or auditor.
ABN 49 079 471 980
DIRECTORS' REPORT
Corporate Governance
In recognising the need for the highest standards of corporate behaviour and accountability, the directors support and have adhered to the principles of Corporate Governance. The company's statement of Corporate Governance Practice is included in the Annual Report.
Subsequent Events
No matters or circumstances have arisen since the end of the financial year which significantly affected or may significantly affect the operations of the company, the results of those operations, or the state of affairs of the company in future financial years.
Environmental Regulations
The company's operations are not regulated by any significant environmental regulation under the law of the Commonwealth or of a State or Territory.
Information on Directors
The Company's Directors have a strong background in mineral exploration, mining engineering, mine management, finance and accounting, with considerable international experience including Australia, USA, Canada, Philippines, Indonesia, Papua New Guinea, Pakistan, Myanmar and Sweden.
| NAME | QUALIFICATIONS | APPOINTED | RESIGNED |
|---|---|---|---|
| Ross Johnston | B.Com, FCA | 8/08/1997 | $\overline{\phantom{a}}$ |
| Peter J. Gilchrist | B.Eng(Civil), M.Eng Sc, MBA. | 8/08/1997 | ۰ |
| James G. Clavarino | FRMIT (Geology) MAIMM, MMICA. | 8/08/1997 | $\overline{\phantom{a}}$ |
| Ken J. Foots | B.Eng (Mining), CPA, F Ausimm, FAICD | 8/08/1997 | 29/08/2005 |
Ross Johnston (Independent Director) - Over 30 years experience as an accountant in public practice, having founded one of the larger independently-owned accountancy practices in Queensland. Has long experience in commercial and financial experience on various boards.
Jim Clavarino (Executive Director) - Has worked as a mineral geologist for over 34 years in Australia and many parts of the world, with considerable experience as a director of mineral exploration companies.
Peter Gilchrist (Executive Director) - Over 30 years experience as an engineer in mining, construction and manufacturing in Australia and USA. He is Executive Chairman of the Aquatec Group, which manufacture and install water treatment equipment for a wide range of customers in the municipal, power and mining industries.
Ken Foots (resigned 29 August 2005) - Has worked as a mining engineer for over 40 years to CEO level, and on boards of numerous mining companies, in Australia and overseas. Has also been involved at senior level in various mining industry bodies.
ABN 49 079 471 980
DIRECTORS' REPORT
Information on Directors (Continued)
Details of Company Secretary - Peter Gilchrist (Executive Director) has been company secretary since the formation of the company, and has experience as secretary with a number of companies.
Relevant interests of the Directors in the share or options of the Company and related bodies corporate are:-
| Balance 1/7/05 Ord Shares |
Change | Balance 30/6/06 Ord Shares |
|
|---|---|---|---|
| Ross Johnston | 450.010 | $\overline{\phantom{0}}$ | 450.010 |
| Peter J. Gilchrist | 395,004 | $\,$ | 395.004 |
| James G. Clavarino | 1.149.400 | - | 1,149,400 |
Messrs Gilchrist and Johnston have an interest in 1,869,960 ordinary shares held by Kemkay Pty Ltd, a subsidiary of 202 Ltd of which they are Directors and substantial shareholders.
Mr Gilchrist is a substantial shareholder in Trenlin Pty Ltd a company which held 1,061,611 shares in the company.
Mr Ross Johnston is a Director and substantial shareholder of Bushfly Air Charter Pty Ltd, a company which held 795,000 shares in the company.
Proceedings on Behalf of the Company
No person has applied for leave of Court to bring proceedings on behalf of the company or intervene in any proceedings to which the company is a party for the purpose of taking responsibility on behalf of the company for all or any part of those proceedings.
The company was not a party to any such proceedings during the year.
Remuneration Report
This report details the nature and amount of remuneration for each director of Lake Resources Limited, and for the executives receiving the highest remuneration.
The information provided in the remuneration report includes remuneration disclosures that are required under Accounting Standard AASB 124 "Related Party Disclosures". These disclosures have been transferred from the financial report and have been audited.
ABN 49 079 471 980
DIRECTORS' REPORT
A. Remuneration policy (audited)
The board policy is to remunerate directors at market rates for time, commitment and responsibilities. The board determines payments to the directors and reviews their remuneration annually, based on market practice, duties and accountability. Independent external advice is sought when required. The maximum aggregate amount of directors' fees that can be paid is subject to approval by shareholders at the Annual General Meeting. Fees for non-executive directors are not linked to the performance of the economic entity. However, to align directors' interests with shareholder interests, the directors are encouraged to hold shares in the company.
The directors and executives receive a superannuation guarantee contribution required by the government, which is currently 9%, and do not receive any other retirement benefits. Some individuals, however, may choose to sacrifice part of their salary to increase payments towards superannuation.
As the company has no full-time employees, contract services are engaged and these contract employees are remunerated with cash consideration.
All remuneration paid to directors and executives is valued at the cost to the company and expensed.
Performance-based remuneration
The company does not pay any performance-based component of salaries.
В. Details of remuneration for year ended 30 June 2006 (audited)
The remuneration received and receivable for each director and each of the executive officers of the company receiving the highest remuneration during the year was as follows:
| Short-term benefits | Post employment benefits | ||||
|---|---|---|---|---|---|
| Directors' Fees | Contract Service Fees |
Superannuation Contribution |
Total | Performance related |
|
| Directors | s | s | s | s | $\frac{9}{6}$ |
| Ross Johnston (non-executive | |||||
| director) | 13.761 | 1.239 | 15.000 | $\tilde{\phantom{a}}$ | |
| lim Clavarino (executive | |||||
| director) | 13.761 | 123,636# | 1.239 | 138.636 | ٠ |
| Peter Gilchrist (executive director) |
13.761 | 33.000* | 1.239 | 48,000 | $\tilde{\phantom{a}}$ |
| Ken Foots (non-executive director - resigned 29.08.05) |
٠ | ٠ | |||
| 41.283 | 156.636 | 3,717 | 201.636 |
Specified Executives
The company has no specified executives
* The company has engaged Trenlin Pty Ltd, a company which Mr PJ Gilchrist is a director to provide professional services to the company.
The company has engaged Argent Resources Pty Ltd, a company which Mr JC Clavarino is a director, to provide exploration services to the company.
These services are provided on normal commercial term and conditions, no more favourable than those provided by other parties.
ABN 49 079 471 980
DIRECTORS' REPORT
$\overline{C}$ . Employment contracts of directors and senior executives (audited)
The employment conditions of the managing director, Mr Peter Gilchrist, and the exploration director, Mr Jim Clavarino are not formalised in contracts of employment.
The company does not have any employment contracts.
Auditor's Independence Declaration
The auditor's independence declaration for the year ended 30 June 2006 has been received and is attached to the directors' report.
Adoption of Australian Equivalents to IFRS
As a result of the introduction of Australian equivalents to International Financial Reporting Standards (IFRS), the company's financial report has now been prepared in accordance with those Standards. A reconciliation of adjustments arising on transition to AIFRS is included in Note 27 to this report.
Pf Sunt
P.J. Gilchrist Director
Brisbane, Queensland 28 August 2006
Indian
R Johnston Director
Auditor's Independence Declaration Under Section 307C of the Corporations Act 2001
To the Directors of Lake Resources NL
I declare that, to the best of my knowledge and belief, during the year ended 30 June 2006 there have been:
- $(i)$ no contraventions to the auditor independence requirements as set out in the Corporations Act 2001 in relation to the audit; and
- no contraventions of any applicable code of professional conduct in relation to the audit. $(ii)$
ROBERTSONS Chartered Accountants
r Mon
A W THOMAS Partner
Date: 29 August 2006
Level 4, 127 Creek Street, Brisbane, Qld. 4000, GPO Box 1189, Brisbane, Qld. 4001. Telephone: (07) 3229 2022 Facsimile: (07) 3229 3277 Email: [email protected]
INDEPENDENT AUDIT REPORT TO THE MEMBERS OF LAKE RESOURCES NL
Scope
The financial report and directors' responsibility
The financial report comprises the income statement, balance sheet, statement of changes in equity, cashflow statement, accompanying notes to the financial statements, and the directors' declaration for Lake Resources NL (the company) for the financial year ended 30 June 2006.
The company has disclosed information about the remuneration of directors and executives ("remuneration disclosures"), as required by Australian Accounting Standard AASB 124 Related Party Disclosures, under the heading "Remuneration Report" in the Directors' Report as permitted by the Corporations Regulations 2001.
The directors of the company are responsible for the preparation and true and fair presentation of the financial report in accordance with the Corporations Act 2001. This includes responsibility for the maintenance of adequate accounting records and internal controls that are designed to prevent and detect fraud and error, and for the accounting policies and accounting estimates inherent in the financial report. The directors are also responsible for preparing the relevant reconciling information regarding the adjustments required under the Australian Accounting Standard AASB 1 First-time adoption of Australian Equivalents to International Financial Reporting Standards.
Audit approach
We have conducted an independent audit of the financial report in order to express an opinion on it to the members of the company. Our audit has been conducted in accordance with Australian Auditing Standards to provide reasonable assurance whether the financial report is free of material misstatement. The nature of an audit is influenced by factors such as the use of professional judgement, selective testing, the inherent limitations of internal controls, and the availability of persuasive rather than conclusive evidence. Therefore an audit cannot guarantee that all material misstatements have been detected.
We performed procedures to form an opinion whether, in all material respects the financial report presents fairly, in accordance with the Corporations Act 2001, including compliance with Accounting Standards and other mandatory financial reporting requirements in Australia, a view which is consistent with our understanding of the company's financial position, and of its performance as represented by the results of its operations and cash flows.
We formed our audit opinion on the basis of these procedures, which included:
- examining, on a test basis, information to provide evidence supporting the amounts and disclosures in the financial report, and
- assessing the appropriateness of accounting policies and disclosures used and the reasonableness of significant accounting estimates made by the directors.
While we considered the effectiveness of management's internal controls over financial reporting when determining the nature and extent of our procedures, our audit was not designed to provide assurance on internal controls.
INDEPENDENT AUDIT REPORT TO THE MEMBERS OF LAKE RESOURCES NL (continued)
Independence
In conducting our audit, we followed applicable independence requirements of Australian professional ethical pronouncements and the Corporations Act 2001.
In accordance with ASIC Class Order 05/83, we declare to the best of our knowledge and belief that the auditor's independence declaration as attached to the financial report has not changed at the date of providing our audit opinion.
Audit Opinion
In our opinion:
-
- The financial report of Lake Resources NL is in accordance with:
- the Corporations Act 2001, including: $(a)$
- giving a true and fair view of the company's financial position as at 30 June $(i)$ 2006 and of its performance for the year ended on that date; and
- complying with Accounting Standards in Australia and the Corporations $(ii)$ Regulations 2001; and
- other mandatory financial reporting requirements in Australia. (b)
-
- The audited remuneration disclosures that are contained under the heading "Remuneration Report" in the Directors' Report comply with Australian Accounting Standard AASB 124 and the Corporations Regulations 2001.
derroom
ROBERTSONS Chartered Accountants
A W THOMAS
Partner
Brisbane Date: 29 August 2006
DIRECTORS' DECLARATION
The directors of the company declare that:
-
- The attached financial statements and notes are in accordance with the Corporations Act 2001 and:
- a) comply with Accounting Standards and the Corporations Regulations 2001; and.
- b) give a true and fair view of the company's financial position as at 30 June 2006 and performance of the company for the year ended on that date.
-
- The Chief Executive Officer and Chief Financial Officer have each declared that:
- a) the financial records of the company for the financial year have been properly maintained in accordance with section 286 of the Corporations Act 2001; and
- b) the financial statements and notes for the financial year comply with the Accounting Standards; and
- c) the financial statements and notes for the financial year give a true and fair view.
-
- In the directors' opinion there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable.
This declaration is made in accordance with a resolution of the Board of Directors.
2 / husban
R Johnston Director
F Silelt.
PJ Gilchrist Director
Dated this 28th day of August 2006
INCOME STATEMENT
for the year ended 30 June 2006
| Note | 2006 | 2005 | |
|---|---|---|---|
| \$ | \$ | ||
| Revenue | 2 | 255,660 | 561,458 |
| Classification of Expenses by Function: | 3 | ||
| Write-off of deferred exploration costs | (125, 263) | (354, 885) | |
| Exploration costs | (33,369) | (30, 957) | |
| Administrative costs | (82,502) | (83, 895) | |
| Corporate costs | (105, 220) | (72, 179) | |
| Occupancy costs | (27,952) | (37, 622) | |
| Profit/(Loss) before income tax expense | 3 | (118, 646) | (18,080) |
| Income tax expense | 4 | ||
| Net profit/(loss) for the year attributable to members of the company | (118, 646) | (18,080) | |
| Basic earnings per share (cents per share) | 7 | (0.463) | (0.071) |
| Diluted earnings per share (cents per share) | 7 | (0.463) | (0.071) |
| Dividends per share (cents per share) |
BALANCE SHEET
as at 30 June 2006
| Note | 2006 | 2005 | |
|---|---|---|---|
| \$ | \$ | ||
| CURRENT ASSETS | |||
| Cash and cash equivalents | 8 | 2,330,716 | 2,369,841 |
| Trade and other receivables | 9 | 4,155 | 41,292 |
| Other current assets | 10 | 11,442 | 18,175 |
| Total Current Assets | 2,346,313 | 2,429,308 | |
| NON-CURRENT ASSETS | |||
| Financial assets | 11 | 318,400 | |
| Property, plant and equipment | 12 | 51,856 | 70,577 |
| Exploration and evaluation expenditure | 13 | 2,403,937 | 2,120,532 |
| Total Non-Current Assets | 2,455,793 | 2,509,509 | |
| TOTAL ASSETS | 4,802,106 | 4,938,817 | |
| CURRENT LIABILITIES | |||
| Trade and other payables | 14 | 22,080 | 40,145 |
| Total Current Liabilities | 22,080 | 40,145 | |
| NON-CURRENT LIABILITIES | |||
| Provisions | 15 | 30,000 | 30,000 |
| Total Non-current Liabilities | 30,000 | 30,000 | |
| TOTAL LIABILITIES | 52,080 | 70,145 | |
| NET ASSETS | 4,750,026 | 4,868,672 | |
| EQUITY Issued capital |
16 | 5,741,350 | 5,741,350 |
| Reserves | 17 | 1,051,609 | 1,051,609 |
| Accumulated losses | (2,042,933) | (1,924,287) | |
| TOTAL EQUITY | 4,750,026 | 4,868,672 |
STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2006
| Issued | Capital Profits | Asset | Retained | Total | |
|---|---|---|---|---|---|
| Capital | Reserve | Revaluation | Earnings | ||
| Reserve | |||||
| \$ | \$ | \$ | \$ | ||
| Balance 1 July 2004 | 5,741,350 | 4,997 | 1,046,612 | (1,906,207) | 4,886,752 |
| Net profit/(loss) for period | (18,080) | (18,080) | |||
| Subtotal | 5,741,350 | 4,997 | 1,046,612 | (1,924,287) | 4,868,672 |
| Dividends paid or provided for | $\tilde{\phantom{a}}$ | ||||
| Balance 30 June 2005 | 5,741,350 | 4,997 | 1,046,612 | (1,924,287) | 4,868,672 |
| Balance 1 July 2005 | 5,741,350 | 4,997 | 1,046,612 | (1,924,287) | 4,868,672 |
| Net profit/(loss) for period | (118, 646) | (118, 646) | |||
| Subtotal | 5,741,350 | 4,997 | 1,046,612 | (2,042,933) | 4,750,026 |
| Dividends paid or provided for | ٠ | ||||
| Balance 30 June 2006 | 5,741,350 | 4,997 | 1,046,612 | (2,042,933) | 4,750,026 |
CASH FLOW STATEMENT
for the year ended 30 June 2006
| Note | 2006 | 2005 | |
|---|---|---|---|
| \$ | \$ | ||
| CASH FLOWS FROM OPERATING ACTIVITIES | |||
| Payments to suppliers | (612,979) | (562,962) | |
| Interest received | 126,512 | 58,265 | |
| Dividends received | 1,800 | 23,000 | |
| Net cash provided by/ (used in) operating activities | 19 | (484, 667) | (481, 697) |
| CASH FLOWS FROM INVESTING ACTIVITIES | |||
| Purchase of property, plant and equipment | (206) | (64, 724) | |
| Proceeds on sale of investments | 445,748 | 2,424,489 | |
| Net cash provided by/ (used in) investing activities | 445,542 | 2,359,765 | |
| CASH FLOWS FROM FINANCING ACTIVITIES | |||
| Proceeds from issue of shares | |||
| Net cash provided by/ (used in) financing activities | $\overline{a}$ | ||
| Net increase/(decrease) in cash held | (39, 125) | 1,878,068 | |
| Cash at beginning of year | 2,369,841 | 491,773 | |
| Cash at end of year | 8 | 2,330,716 | 2,369,841 |
ABN 49 079 471 980
Notes to the Financial Statements
For the year ended 30 June 2006
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
The financial report is a general purpose financial report that has been prepared in accordance with Australian Accounting Standards, Urgent Issues Group Interpretations, other authoritative pronouncements of the Australian Accounting Standards Board and the Corporations Act 2001.
The financial report covers Lake Resources NL. Lake Resources NL is a listed public company, incorporated and domiciled in Australia.
The financial report complies with all Australian equivalents to International Financial Reporting Standards (AIFRS) in their entirety.
The following is a summary of the material accounting policies adopted by the company in the preparation of the financial report. The accounting policies have been consistently applied, unless otherwise stated.
Basis of Preparation
First-time Adoption of Australian Equivalents to International Financial Reporting Standards
The company has prepared financial statements in accordance with the Australian equivalents to International Financial Reporting Standards (AIFRS) from 1 July 2005.
In accordance with the requirements of AASB 1: First-time Adoption of Australian Equivalents to International Financial Reporting Standards, adjustments to the company accounts resulting from the introduction of AIFRS have been applied retrospectively to 2005 comparative figures excluding cases where optional exemptions available under AASB 1 have been applied. These accounts are the first financial statements of the company to be prepared in accordance with Australian equivalents to IFRS.
The accounting policies set out below have been consistently applied to all years presented. The company has however elected to adopt the exemptions available under AASB 1 relating to AASB 132: Financial Instruments: Disclosure and Presentation, and AASB 139: Financial Instruments: Recognition and Measurement. Refer to Note 28 for further details on changes in accounting policy.
Reconciliations of the transition from previous Australian GAAP to AIFRS have been included in Note 27 to this report.
Reporting Basis and Conventions
The financial report has been prepared on an accruals basis and is based on historical costs modified by the revaluation of selected non-current assets, financial assets and financial liabilities for which the fair value basis of accounting has been applied.
Accounting Policies
я. Income Tax
The charge for current income tax expense is based on the profit for the year adjusted for any non-assessable or disallowed items. It is calculated using the tax rates that have been enacted or are substantially enacted by the balance sheet date.
Deferred tax is accounted for using the balance sheet liability method in respect of temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. No deferred income tax will be recognised from the initial recognition of an asset or liability, excluding a business combination, where there is no effect on accounting or taxable profit or loss.
Deferred tax is calculated at the tax rates that are expected to apply to the period when the asset is realised or liability is settled. Deferred tax is credited in the income statement except where it relates to items that may be credited directly to equity, in which case the deferred tax is adjusted directly against equity.
Deferred income tax assets are recognised to the extent that it is probable that future tax profits will be available against which deductible temporary differences can be utilised.
The amount of benefits brought to account or which may be realised in the future is based on the assumption that no adverse change will occur in income taxation legislation and the anticipation that the company will derive sufficient future assessable income to enable the benefit to be realised and comply with the conditions of deductibility imposed by the law.
ABN 49 079 471 980
Notes to the Financial Statements
For the year ended 30 June 2006
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
b. Property, Plant and Equipment
Each class of property, plant and equipment is carried at cost or fair value less, where applicable, any accumulated depreciation and impairment losses.
Plant and equipment
Plant and equipment are measured on the cost basis.
The carrying amount of plant and equipment is reviewed annually by directors to ensure it is not in excess of the recoverable amount from these assets. The recoverable amount is assessed on the basis of the expected net cash flows that will be received from the asset's employment and subsequent disposal. The expected net cash flows have been discounted to their present values in determining recoverable amounts.
The cost of fixed assets constructed within the economic entity includes the cost of materials, direct labour, borrowing costs and an appropriate proportion of fixed and variable overheads. Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the group and the cost of the item can be measured reliably. All other repairs and maintenance are charged to the income statement during the financial period in which they are incurred.
Increases in the carrying amount arising on revaluation of land and buildings are credited to a revaluation reserve in equity. Decreases that offset previous increases of the same asset are charged against tair value reserves directly in equity; all other decreases are charged to the income statement. Each year the difference between depreciation based on the revalued carrying amount of the asset charged to the income statement and depreciation based on the asset's original cost is transferred from the revaluation reserve to retained carnings.
Depreciation
The depreciable amount of all fixed assets including building and capitalised lease assets, but excluding freehold land, is depreciated on a straight-line basis over their useful lives to the company commencing from the time the asset is held ready for use. Leasehold improvements are depreciated over the shorter of either the unexpired period of the lease or the estimated useful lives of the improvements. The depreciation rates used for each class of depreciable assets are:
Class of Fixed Asset Depreciation Rate
Plant and equipment
20%
The assets' residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet date. An asset's carrying amount is written down immediately to its recoverable amount if the asset's carrying amount is greater than its estimated recoverable amount.
Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains and losses are included in the income statement. When revalued assets are sold, amounts included in the revaluation reserve relating to that asset are transferred to retained carnings
Exploration and Development Expenditure ć.
Exploration, evaluation and development expenditure incurred is accumulated in respect of each identifiable area of interest. These costs are written off as incurred except that they may be carried forward, provided that rights to tenure of an area of interest are correct and that the costs are expected to be recouped through the successful development of the area, or sale, or where activities in the area have not yet reached a stage that permits reasonable assessment of the existence of economically recoverable reserves. Accumulated costs in relation to an abandoned area are written off in full against profit in the year in which the decision to abandon the area is made.
When production commences, the accumulated costs for the relevant area of interest are amortised over the life of the area according to the rate of depletion of the economically recoverable reserves. A regular review is undertaken of each area of interest to determine the appropriateness of continuing to carry forward costs in relation to that area of interest
ABN 49 079 471 980
Notes to the Financial Statements
For the year ended 30 June 2006
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Restoration Costs
Costs of site restoration are provided over the life of the facility from when exploration commences and are included in the costs of that stage. Site restoration costs include the dismantling and removal of mining plant, equipment and building structures, waste removal, and rehabilitation of the site in accordance with clauses of the mining permits. Such costs have been determined using estimates of future costs, current legal requirements and technology on an undiscounted basis.
Any changes in the estimates for the costs are accounted on a prospective basis. In determining the costs of site restoration, there is uncertainty regarding the nature and extent of the restoration due to community expectations and future legislation. Accordingly the costs have been determined on the basis that the restoration will be completed within one year of abandoning the site.
The company has no obligations for any restoration costs in relation to discontinued operations, nor is it liable for any future restoration costs in relation to current areas of interest, as the evaluation activity undertaken results in minimal disturbance to the areas of interest in question.
Consequently, no provision for restoration has been deemed necessary.
đ. Financial Instruments
Recognition
Financial instruments are initially measured at cost on trade date, which includes transaction costs, when the related contractual rights or obligations exist. Subsequent to initial recognition these instruments are measured as set out below.
Financial assets at fair value through profit and loss
A financial asset is classified in this category if acquired principally for the purpose of selling in the short term or if so designated by management and within the requirements of AASB 139: Recognition and Measurement of Financial Instruments. Derivatives are also categorised as held for trading unless they are designated as hedges. Realised and unrealised gains and losses arising from changes in the fair value of these assets are included in the income statement in the period in which they arise.
Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market and are stated at amortised cost using the effective interest rate method.
Held-to-maturity investments
These investments have fixed maturities, and it is the company's intention to hold these investments to maturity. Any held-to-maturity investments held by the company are stated at amortised cost using the effective interest rate method.
Available-for-sale financial assets
Available-for-sale financial assets include any financial assets not included in the above categories. Available-for-sale financial assets are reflected at fair value. Unrealised gains and losses arising from changes in fair value are taken directly to coulty.
Financial liabilities
Non-derivative financial liabilities are recognised at amortised cost, comprising original debt less principal payments and amortisation.
Fair value
Fair value is determined based on current bid prices for all quoted investments. Valuation techniques are applied to determine the fair value for all unlisted securities, including recent arm's length transactions, reference to similar instruments and option pricing models.
Impairment
At each reporting date, the company assesses whether there is objective evidence that a financial instrument has been impaired. In the case of available-for-sale financial instruments, a prolonged decline in the value of the instrument is considered to determine whether an impairment has arisen. Impairment losses are recognised in the income statement.
ABN 49 079 471 980
Notes to the Financial Statements
For the year ended 30 June 2006
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Impairment of Assets e.
At each reporting date, the company reviews the carrying values of its tangible and intangible assets to determine whether there is any indication that those assets have been impaired. If such an indication exists, the recoverable amount of the asset, being the higher of the asset's fair value less costs to sell and value in use, is compared to the asset's carrying value. Any excess of the asset's carrying value over its recoverable amount is expensed to the income statement.
Impairment testing is performed annually for goodwill and intangible assets with indefinite lives.
Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
ſ. Foreign Currency Transactions and Balances
Transaction and balances
Foreign currency transactions are translated into functional currency using the exchange rates prevailing at the date of the transaction. Foreign currency monetary items are translated at the year-end exchange rate. Non-monetary items measured at historical cost continue to be carried at the exchange rate at the date of the transaction. Non-monetary items measured at fair value are reported at the exchange rate at the date when fair values were determined.
Exchange differences arising on the translation of monetary items are recognised in the income statement, except where deferred in equity as a qualifying cash flow or net investment hedge.
Exchange differences arising on the translation of non-monetary items are recognised directly in equity to the extent that the gain or loss is directly recognised in equity, otherwise the exchange difference is recognised in the income statement.
Exchange differences arising on translation of foreign operations are transferred directly to the group's foreign currency translation reserve in the balance sheet. These differences are recognised in the income statement in the period in which the operation is disposed.
g. Provisions
Provisions are recognised when the company has a legal or constructive obligation, as a result of past events, for which it is probable that an outflow of economic benefits will result and that outflow can be reliably measured.
Make Good Provisions
Where the company is required under an operating lease to return the asset to the lessor in its original condition, and the operating lease payments do not include an element for these repairs or overhauls, under AIFRS a provision for refurbishment costs is recognised over the period of the lease, measured at the expected cost of refurbishment at each reporting date. Under previous AGAAP the cost of refurbishment was not recognised until the expenditure was incurred.
The provision for make good costs has been recognised as an asset and a corresponding liability, with the asset amortised over the period of the lease to date.
On I July 2004, a provision for make good costs associated with this operating lease of \$30,000 has been recognised as an asset and a corresponding liability. The amount of asset amortised to the profit and loss to 1 July 2004 is \$12,083, representing the amount that corresponds to the expired portion of the lease to that date.
h. Cash and Cash Equivalents
Cash and cash equivalents include cash on hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within shortterm borrowings in current liabilities on the balance sheet.
ABN 49 079 471 980
Notes to the Financial Statements
For the year ended 30 June 2006
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
î. Revenue
Interest revenue is recognised on a proportional basis taking into account the interest rates applicable to the financial assets.
Dividend revenue is recognised when the right to receive a dividend has been established.
Revenue from the rendering of a service is recognised upon the delivery of the service to the customers.
All revenue is stated net of the amount of goods and services tax (GST).
j. Goods and Services Tax (GST)
Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian Tax Office. In these circumstances the GST is recognised as part of the cost of acquisition of the asset or as part of an item of the expense. Receivables and payables in the balance sheet are shown inclusive of GST.
Cash flows are presented in the cash flow statement on a gross basis, except for the GST component of investing and financing activities, which are disclosed as operating cash flows.
Employee Benefits k.
Provision is made for the company's liability for employee benefits arising from services rendered by employees to balance date. Employee benefits that are expected to be settled within one year have been measured at the amounts expected to be paid when the liability is settled, plus related on-costs. Employee benefits payable later than one year have been measured at the present value of the estimated future cash outflows to be made for those benefits.
l. Leases
Leases of fixed assets where substantially all the risks and benefits incidental to the ownership of the asset, but not the legal ownership that is transferred to entities in the economic entity, are classified as finance leases.
Finance leases are capitalised by recording an asset and a liability at the lower of the amounts equal to the fair value of the leased property or the present value of the minimum lease payments, including any guaranteed residual values. Lease payments are allocated between the reduction of the lease liability and the lease interest expense for the period.
Leased assets are depreciated on a straight-line basis over the shorter of their estimated useful lives or the lease term.
Lease payments to operating leases, where substantially all the risks and benefits remain with the lessor, are charged as expenses in the periods in which they are incurred.
Lease incentives under operating leases are recognised as a liability and amortised on a straight-line basis over the life of the lease term.
Comparative Figures m.
When required by Accounting Standards, comparative figures have been adjusted to conform to changes in presentation for the current financial year.
ABN 49 079 471 980
Notes to the Financial Statements
For the year ended 30 June 2006
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Critical Accounting Estimates and Judgments
The directors evaluate estimates and judgments incorporated into the financial report based on historical knowledge and best available current information. Estimates assume a reasonable expectation of future events and are based on current trends and economic data, obtained both externally and in the company.
Key Estimates - Impairment
The company assesses impairment at each reporting date by evaluating conditions specific to the company that may lead to impairment of assets. Where an impairment trigger exists, the recoverable amount of the asset is determined. Value-in-nse calculations performed in assessing recoverable amounts incorporate a number of key estimates.
No impairment of assets has been identified for the year ended 30 June 2006.
Key Estimates - Impairment of Exploration and Development Expenditure
The company assesses impairment at each reporting date by evaluating conditions specific to the company that may lead to impairment of Exploration and Development assets. These costs are only carried forward to the extent that they are expected to be recouped through the successful development of the area or where activities in the area have not yet reached a stage that permits reasonable assessment of the existence of economically recoverable reserves.
\$125,262 of carried forward exploration costs in relation to Argentina were written - off as it was determined that these costs were not expected to be recouped through successful development of the area of interest.
Key Judgments - Carry-forward of Exploration and Development Expenditure
A regular review is undertaken of each area of interest to determine the appropriateness of continuing to carry forward costs in relation to that area of interest.
ABN 49 079 471 980
Notes to the Financial Statements for the year ended 30 June 2006
| 2006 | 2005 | ||
|---|---|---|---|
| \$ | \$ | ||
| NOTE 2: REVENUE FROM ORDINARY ACTIVITIES | |||
| Operating activities: | |||
| Interest revenue from other persons | 126,512 | 58,265 | |
| Dividend revenue from other corporations | 1,800 | 23,000 | |
| 128,312 | 81,265 | ||
| Non-operating activities: | |||
| Net gain on disposal of non-current investments Total revenue |
127,348 255,660 |
480,193 561,458 |
|
| NOTE 3: PROFIT/(LOSS) FOR THE YEAR | |||
| Profit/(Loss) from ordinary activities before income tax has been determined after: | |||
| $\left( a\right)$ | Expenses | ||
| Exploration expenditure | 33,369 | 30,957 | |
| Foreign currency translation (gains)/losses | 1,087 | ||
| (b) | Significant Revenue and Expenses | ||
| Write-off of capitalised exploration expenditure | 125,263 | 354,885 | |
| NOTE 4: INCOME TAX EXPENSE/(BENEFIT) | |||
| $\left( a\right)$ | The components of tax expense comprise: | ||
| Current tax | |||
| Deferred tax | |||
| Recoupment of prior year tax losses | |||
| Under provision in respect of prior years | |||
| ł, | |||
| (b) | Prima facie tax payable/(benefit) on profit/(loss) from ordinary | ||
| activities before tax income tax at 30% (2005: 30%). | |||
| (35, 593) | (5,424) | ||
| Add/(less) tax effect of: | |||
| Non-assessable items | (540) | (6,900) | |
| Non-allowable items | 287 | 665 | |
| Write-off of exploration expenditure | 37,579 | 106,465 | |
| Utilisation of carried forward losses | (95, 644) | ||
| Future income tax benefit of tax losses not brought to account | 83,288 | ||
| Timing differences between income tax and accounting treatment of | |||
| exploration and other expenditure | (85,021) | 838 | |
| Income tax expense attributable to profit/(loss) from ordinary activities before | |||
| income tax | |||
| The company has unrecouped, unconfirmed carry forward tax losses of approximately \$3.26 million (2005: \$2.98 million). |
A deferred tax asset arising from carry forward tax losses will only be recognised to the extent that:
(a) it is probable that the company will derive future assessable income of a nature and of an amount sufficient to enable the benefits from the deductions for the losses to be realised;
(b) the company continues to comply with the conditions for deductibility imposed by the law; and
(c) no changes in tax legislation adversely affect the company in realising the benefit from the losses.
ABN 49 079 471 980
Notes to the Financial Statements for the year ended 30 June 2006
| --- ---- , ---- -------- , ---- -- - | 2006 | 2005 --- |
|---|---|---|
NOTE 5: KEY MANAGEMENT PERSONNEL COMPENSATION
(a) Names and positions held of company key management personnel in office at any time during the financial year are:
| Key Management Person | Position | ||
|---|---|---|---|
| Peter Gilchrist | Managing Director | ||
| James Clavarino | Exploration Director | ||
| Ross Johnston | Non - executive Director | ||
| Ken Foots (resigned 29 August 2005) | Non-executive Director | ||
| (b) Key Management Personnel Compensation | |||
| Short-term employee benefits* | 197.919 | 87.781 | |
| Post-employment benefits | 3.717 | ||
| 201.636 | 87.781 | ||
| ŵ | Includes fees paid for contract services provided |
The company has taken advantage of the relief provided by regulation 2M.6.04 of the Corporations Regulations 2001 and has transferred the detailed remuneration disclosures to the Directors' Report. The relevant information can be found in Sections A-C of the Remuneration Report.
NOTE 6: AUDITORS' REMUNERATION
| Remuneration of the auditor of the company for: - auditing or reviewing the financial report - other services |
12,410 | 10,500 | |
|---|---|---|---|
| 12,410 | 10,500 | ||
| NOTE 7: EARNINGS PER SHARE | |||
| (a) | The earnings figure used in the calculation of both the basic EPS and the diluted EPS are the same. |
(118,646) | (18,080) |
| (b) | Weighted average number of ordinary shares outstanding during the year used in the calculation of basic EPS |
25.608.795 | 25,608,795 |
| Weighted average number of options outstanding | |||
| Weighted average number of ordinary shares outstanding during the year used in the calculation of dilutive EPS |
25,608,795 | 25,608,795 | |
| $\left( c\right)$ | Classification of Securities |
Only ordinary shares existed during the 2006 year.
ABN 49 079 471 980
Notes to the Financial Statements for the year ended 30 June 2006
| 2006 | 2005 | |||
|---|---|---|---|---|
| \$ | \$ | |||
| NOTE 8: CASH AND CASH EQUIVALENTS | ||||
| Cash at bank and in hand | 65,165 | 65,802 | ||
| Short term bank deposit | 2,265,551 | 2,304,039 | ||
| 2,330,716 | 2,369,841 | |||
| The effective interest rates on short term bank deposits was 5.69% (2005: | ||||
| 5.6%); these deposits have an average maturity of less that 90 days. | ||||
| Reconciliation of cash | ||||
| Cash at the end of the financial year as shown in the cash flow statement is | ||||
| reconciled to items in the balance sheet as follows: | ||||
| Cash and cash equivalents | 2.330.716 | 2.369.841 | ||
| NOTE 9: TRADE AND OTHER RECEIVABLES | ||||
| Current: | ||||
| Other receivables | 4.155 | 41.292 | ||
| 4,155 | 41,292 | |||
| NOTE 10: OTHER ASSETS | ||||
| Current: | ||||
| Prepayments | 11,442 | 18.175 | ||
| NOTE 11: OTHER FINANCIAL ASSETS | ||||
| Non-Current: | ||||
| Available for sale financial assets | (a) | 318,400 | ||
| $\left( a\right)$ | Available for sale financial assets comprise: | |||
| Listed investments, at fair value | $\cdot$ | 318,400 | ||
| Available for sale financial assets comprise investments in the |
ordinary issued capital of various entities. There are no fixed returns or fixed maturity dates attached to these investments.
ABN 49 079 471 980
Notes to the Financial Statements for the year ended 30 June 2006
| 2006 | 2005 | |
|---|---|---|
| \$ | \$ | |
| NOTE 12: PROPERTY, PLANT AND EQUIPMENT | ||
| Plant and equipment | ||
| At cost | 70,465 | 70,260 |
| Accumulated depreciation | (55,691) | (47, 876) |
| Total Plant and Equipment | 14,775 | 22,384 |
| Vehicles | ||
| At cost | 55.561 | 55,561 |
| Accumulated depreciation | (18, 480) | (7,368) |
| Total Vehicles | 37,081 | 48,193 |
| Total Property, Plant and Equipment | 51,856 | 70,577 |
Movement in carrying amount
Movement in the carrying amounts for each class of property, plant and equipment are set out below:
| 2005 | |||
|---|---|---|---|
| Vehicles | Plant & Equip. | Total | |
| \$ | \$ | \$ | |
| Balance at the beginning of year | $\sim$ | 25.726 | 25,726 |
| Additions | 55.561 | 9.163 | 64,724 |
| Disposals | $\blacksquare$ | ||
| Depreciation expense | (7.368) | (7,505) | (14, 873) |
| Amortisation expense | $\sim$ | (5,000) | (5,000) |
| Carrying amount at the end of year | 48.193 | 22.384 | 70,577 |
| 2006 | |||
|---|---|---|---|
| Vehicles | Plant & Equip. | Total | |
| \$ | \$ | ||
| Balance at the beginning of year | 48.193 | 22.384 | 70,577 |
| Additions | 206 | 206 | |
| Disposals | |||
| Depreciation expense | (11,111) | (2,816) | (13, 927) |
| Amortisation expense | (5,000) | (5,000) | |
| Carrying amount at the end of year | 37.082 | 14.774 | 51,856 |
ABN 49 079 471 980
Notes to the Financial Statements for the year ended 30 June 2006
2005
2006
| Ф | Ф | |
|---|---|---|
| NOTE 13: EXPLORATION AND EVALUATION EXPENDITURE | ||
| Exploration and evaluation costs carried forward in respect of areas of interest are: | ||
| - at cost | 2,403,937 | 2,120,532 |
| Movement during the year in exploration and evaluation expenditure: | ||
| At cost; | ||
| Opening balance - at cost | 2,120,532 | 623,321 |
| Capitalised exploration and evaluation expenditure | 408,668 | 352,096 |
| Write down of discontinued exploration tenements | (125,263) | (354, 885) |
| Exploration database - at deemed cost (refer note (a)) | 1,500,000 | |
| Carrying amount at the end of year | 2,403,937 | 2,120,532 |
| Recoverability of the carrying amount of exploration assets is dependent on | ||
| the successful exploration of minerals. Capitalised costs amounting to | ||
| \$408,668 (2005: \$352,096) have been included in cash flows from operating activities in the cash flow statement. |
||
| (a) Exploration Database Costs | ||
| The company has elected under AASB 1: First-time adoption of Australian Equivalents to International Financial Reporting Standards to measure |
||
| exploration database costs at the date of transition to Australian equivalents to | ||
| IFRS at its fair value and use its fair value as deemed cost at that date. As a | ||
| result there is no transitional or ongoing differences arising from adoption of this Standard. |
||
| On transition to AIFRS, under AASB 138 Intangible Assets, it is not mandatory | ||
| to amortise such assets that are considered to have indefinite useful lives. These assets will be carried at cost and tested for impairment at least annually. |
||
| NOTE 14: TRADE AND OTHER PAYABLES | ||
| Current: | ||
| Unsecured creditors: | ||
| Sundry creditors and accrued expenses | 22,080 | 40,145 |
| 22.080 | 40,145 | |
| NOTE 15: PROVISIONS | ||
| Non-Current: | ||
| Make-good provision | 30,000 | 30,000 |
| 30,000 | 30,000 | |
| Provision for make-good on premises lease | ||
| A provision of \$30,000 has been made for the costs to be incurred under the terms of an operating lease agreement which requires that |
under the terms of an operating lease agreement which requires that the leased office premises be returned to the lessor in original condition.(refer note 1(g))
ABN 49 079 471 980
Notes to the Financial Statements for the year ended 30 June 2006
| 2006 \$ |
2005 \$ |
||
|---|---|---|---|
| NOTE 16: ISSUED CAPITAL | |||
| 25,608,795 (2005: 25,608,795) fully paid ordinary shares | 5,741,350 | 5,741,350 | |
| Fully paid ordinary shares Balance at the beginning of the reporting period Shares issued during the year |
5,741,350 | 5,741,350 | |
| Balance at reporting date | 5,741,350 | 5,741,350 | |
| Balance at the beginning of the reporting period Shares issued during the year: |
No. 25,608,795 |
No. 25,608,795 |
|
| Balance at reporting date | 25,608,795 | 25,608,795 | |
| Options | Ordinary shares participate in dividends and the proceeds on winding up of the entity 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. |
||
| There are no options over shares | |||
| NOTE 17: RESERVES | |||
| (a) | Capital Profits Reserve | ||
| The capital profits reserve records non-taxable profitsd on sale of investments |
|||
| (b) | Asset Revaluation Reserve | ||
| The asset revaluation reserve records revaluations of non-current assets. Under certain circumstances dividends can be declared from this reserve |
NOTE 18: CONTROLLED ENTITY
| Name of Entity | % owned | Carrying value | |
|---|---|---|---|
| of Investment | |||
| Lake Resources Argentina SA (Incorporated in Argentina) | $100\%$ |
This company was incorporated solely to allow Lake Resources NL to open a bank account to support its exploration activities in Argentina.
ABN 49 079 471 980
Notes to the Financial Statements for the year ended 30 June 2006
2006
2005
| \$ | \$ | |
|---|---|---|
| NOTE 19: CASH FLOW INFORMATION | ||
| Reconciliation of Cash Flow from Operations with Profit/(loss) from Ordinary Activities after Income Tax: |
||
| Profit/(loss) from ordinary activities after income tax | (118, 646) | (18,080) |
| Non-cash flows in profit from ordinary activities: | ||
| Gain on disposal of investments | (127, 348) | (480, 193) |
| Depreciation & amortisation | 18,928 | 19,873 |
| Write-down of capitalised exploration & evaluation expenditure | 125,263 | 354,886 |
| Exploration and evaluation expenditure capitalised | (408, 668) | (352,093) |
| Changes in operating assets and liabilities: | ||
| Decrease/(Increase) in receivables | 37,137 | (23, 833) |
| Decrease/(Increase) in prepayments | 6,733 | (7,607) |
| (Decrease)/Increase in trade creditors and accruals | (18,066) | 25,350 |
| Cash flows from operations | (484, 667) | (481, 697) |
| NOTE 20: RELATED PARTY TRANSACTIONS | ||
| Transactions between related parties are on normal commercial terms and conditions no more favourable than those available to other parties unless otherwise stated. |
||
| Directors' transactions with the Company | ||
| Directors' remuneration is detailed in Note 5. | ||
| The company paid Argent Resources Pty Ltd, a company of which Mr J.C. Clavarino is a director, fees for professional services in relation to exploration work undertaken on behalf of the company. |
||
| 123,636 | 51,781 | |
| The company paid Trenlin Pty Ltd, a company of which Mr P.J. Gilchrist is a shareholder, fees for professional services undertaken on behalf of the company. |
33,000 | 33,000 |
| During part of the year the entity rented office space to Little Digger Mining Limited, a company of which Mr K J Foots, a former director of the company, is also a director. |
3,000 | 12,000 |
| During the year the entity rented office space to 202 Ltd, a company of which Mr R Johnston and Mr PJ Gilchrist, directors of the company during the year, are also directors. |
||
| 10,363 | 8,318 |
ABN 49 079 471 980
Notes to the Financial Statements for the year ended 30 June 2006
| 2006 | 2005 | |
|---|---|---|
NOTE 20: RELATED PARTY TRANSACTIONS (contd)
Directors' transactions in shares and options
No options were issued to director related entities during the year (2005: nil), and no options are held by directors or directorrelated entities.
Directors' holding of shares and options
Directors and director-related entities hold directly, indirectly or beneficially as at the reporting date, the following equity interests in the company:
| No. | No. | |
|---|---|---|
| Ordinary shares | 5,720,985 | 6.140.985 |
| Options over ordinary shares | nil | nil |
| No shares were issued to directors during the year on terms more | ||
| favourable than those which it is reasonable to expect the entity | ||
| would have adopted if dealing in an arm's length transaction with an | ||
| unrelated party. |
All options held by directors expired on 30 June 2004.
NOTE 21: CAPITAL AND LEASING COMMITMENTS
Operating Lease Commitment
Non-cancellable operating leases contracted for but not capitalised in the financial statements
| Pavable | ||
|---|---|---|
| not later than 1 year | 59.704 | 59.704 |
| later than 1 year but not later than 5 years | 34.828 | 94.532 |
| later than 5 years. |
The property lease is a non-cancellable lease with a 6 year term, with rent payable monthly in advance. Contingent rental provisions within the lease agreement require the minimum lease payments shall be increased by the greater of CPI or 4% per annum. The lease allows for subletting of all lease areas.
Notes to the Financial Statements for the year ended 30 June 2006
| 2006 | 2005 | |
|---|---|---|
| S | s | |
| NOTE 22: CONTINGENT LIABILITIES | ||
| Estimate of the maximum amount of contingent liability that may become payable: | ||
| Guarantee | ||
| The company has provided a guarantee to third parties in relation to obligations under its property lease | ||
| rental agreement. | 34.406 | 34,406 |
| NOTE 23: FINANCIAL INSTRUMENTS |
a. Credit Risk
The maximum exposure to credit risk, excluding the value of any collateral or other security, at balance date to recognised financial assets is the carrying amount, net of any provisions for doubtful debts of those assets, as disclosed in the balance sheet and notes to the financial statements.
The company does not have any material credit risk exposure to any single debtor or group of debtors under financial instruments entered into by the company.
b. Net Fair Values
No financial assets or liabilities are readily traded on organised markets in a standardised form. Financial assets where the carrying amount exceeds net fair values have not been written down, as the company intends to hold these assets to maturity.
The aggregate net fair values and carrying amounts of financial assets and liabilities are disclosed in the balance sheet and notes to the financial statements.
c. Interest Rate Risk
The company's exposure to interest rate risk, which is the risk that a financial instrument's value will fluctuate as a result of changes in market interest rates and the effective weighted average interest rates on classes of financial assets and financial liabilities, is as follows:
| Weighted Average Effective Interest Rate |
Floating Interest Rate | Non-Interest Bearing | Total | |||||
|---|---|---|---|---|---|---|---|---|
| 2006 | 2005 | 2006 | 2005 | 2006 | 2005 | 2006 | 2005 | |
| ₩ | ℅ | s | 5 | \$ | 5 | £ | S | |
| Financial Assets: | ||||||||
| Cash | 5.69 | 5.40 | 2,330,716 | 2,369,841 | 2,330,716 | 2,369,841 | ||
| Receivables | 4,155 | 41,292 | 4,155 | 41,292 | ||||
| Total Financial Assets | 2,330,716 | 2,369,841 | 4,155 | 41,292 | 2,334,871 | 2,411,133 | ||
| Financial Liabilities: | ||||||||
| Trade and sundry creditors | 22,080 | 40,145 | 22,080 | 40,145 | ||||
| Total Financial Liabilities | 22,080 | 40,145 | 22,080 | 40,145 |
Notes to the Financial Statements for the year ended 30 June 2006
NOTE 24: SEGMENT REPORTING
The Company operates internationally in the mineral exploration industry. At balance date the company has been granted mineral tenements in Pakistan.
Primary Reporting: Geographical Segments
| Australia | Argentina | Sweden | Pakistan | Economic Entity | ||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2006 | 2005 | 2006 | 2005 | 2006 | 2005 | 2006 | 2005 | 2006 | 2005 | |
| \$ | \$ | ŝ | ŝ. | 5 | s | 5 | 5 | s | Ś. | |
| REVENUE | ||||||||||
| Dividends from other | ||||||||||
| corporations | 1,800 | 23,000 | 1,800 | 23,000 | ||||||
| interest | 126,512 | 58,265 | 126,512 | 58,265 | ||||||
| Sale of non-current assets. | 127,348 | 480,193 | 127,348 | 480,193 | ||||||
| Total revenue from ordinary activities |
255,660 | |||||||||
| RESULT | 255,660 | 561,458 | 561,458 | |||||||
| Profil/(Loss) from | ||||||||||
| ordinary activities before | ||||||||||
| income tax expense | (39, 488) | 234,715 | (69, 809) | (170, 735) | (9,749) | (70,378) | (11,682) | (118, 646) | (18,080) | |
| income tax expense. | ||||||||||
| Profit/(Loss) from | ||||||||||
| ordinary activities after | ||||||||||
| income tax expense | (39, 488) | 234,715 | (69, 809) | (170.735) | (9,749) | (70.378) | (11,682) | (118, 646) | (13,080) | |
| ASSETS | ||||||||||
| Segment assets | 2,398,169 | 2,818,285 | 2,403,937 | 2,120,532 | 4,802,106 | 4,938,817 | ||||
| LIABILITIES | ||||||||||
| Segment liabilities | 52,080 | 70,145 | 52,080 | 70,145 | ||||||
| OTHER | ||||||||||
| (Acquisition)/Disposal of | ||||||||||
| current Segment non |
||||||||||
| assets | 318,400 | 1,944,298 | (64,725) | 163,468 | (283, 611) | (160, 677) | 34,789 | 1,882,364 | ||
| Depreciation of segment | ||||||||||
| assets | 6,331 | 12,505 | 12,597 | 7,368 | 18.928 | 19,873 | ||||
| Non-cash items other than depreciation |
(127,348) | (477, 400) | 125,263 | (408, 668) | (410,753) | (477, 400) |
There were no transfers between segments reflected in the revenues, expenses or result above. The pricing of any intersegment transactions is based on market values
Secondary Reporting: Business Segments
| Business Segments | Segment Revenues from External Customers |
Carrying Amount of Segment Assets |
Acquisition of Non-Current Segment Assets |
||||
|---|---|---|---|---|---|---|---|
| 2006 | 2005 | 21KKb | 2005 | 2006 | 2005 | ||
| Mineral Exploration | 255.660 | 561.458 | 4.802.106 | 4.938.817 | 34.789 | 1.882.364 |
NOTE 25: COMPANY DETAILS
The registered office and principal place of business of the company is:
Lake Resources NE Level 2 183 North Quay Brisbane Qld 4000
NOTE 26: EVENTS AFTER THE BALANCE SHEET DATE
The financial report was authorised for issue on 28 August 2006.
Notes to the Financial Statements
for the year ended 30 June 2006
NOTE 24: SEGMENT REPORTING
The Company operates internationally in the mineral exploration industry. At balance date the company has been granted mineral tenements in Pakistan.
Primary Reporting: Geographical Segments
| Australia | Argentina | Sweden | Pakistan | Economic Entity | ||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2006 | 2005 | 2006 | 2005 | 2006 | 2005 | 2006 | 2005 | 2006 | 2005 | |
| \$ | \$ | \$ | \$ | 5 | ŝ | 5 | ŝ | s | s | |
| REVENUE | ||||||||||
| Divídends from other | ||||||||||
| corporations | 1,800 | 23,000 | 1,800 | 23,000 | ||||||
| Interest | 126,512 | 58,265 | 126,512 | 58,265 | ||||||
| Sale of non-current assets Total revenue from |
127,348 | 480,193 | 127,348 | 480,193 | ||||||
| ordinary activities | 255,660 | 561,458 | 255.660 | 561,458 | ||||||
| RESULT | ||||||||||
| Profit/(Loss) from | ||||||||||
| ordinary activities before | ||||||||||
| income tax expense | (39, 488) | 234,715 | (69, 809) | (170, 735) | (9,749) | (70, 378) | (11,682) | (118,646) | (18,080) | |
| Income tax expense. | ||||||||||
| Profit/(Loss) from | ||||||||||
| ordinary activities after | ||||||||||
| income tax expense | (39, 488) | 234,715 | (69, 809) | (170, 735) | (9,749) | (70, 378) | (11,682) | (118,646) | (13,080) | |
| ASSETS | ||||||||||
| Segment assets | 2,398,169 | 2,818,285 | 2,403,937 | 2,120,532 | 4,802,106 | 4,938,817 | ||||
| LIABILITIES | ||||||||||
| Segment liabilities | 52.080 | 70.145 | 52.080 | 70.145 | ||||||
| OTHER | ||||||||||
| (Acquisition)/Disposal of | ||||||||||
| Segment current BGD. |
||||||||||
| assets | 318,400 | 1,944,298 | (64, 725) | 163,468 | (283,611) | ${160,677}$ | 34,789 | 1,882,364 | ||
| Depreciation of segment assets |
6,331 | 12,505 | 12,597 | 7,368 | 18,928 | 19,873 | ||||
| Non-cash items other | ||||||||||
| than depreciation | (327, 348) | (477, 400) | 125,263 | (408, 668) | (410,753) | ${477,400}$ |
There were no transfers between segments reflected in the revenues, expenses or result above. The pricing of any intersegment transactions is based on market values.
Secondary Reporting: Business Segments
| Business Segments | Segment Revenues from External Customers |
Carrying Amount of Segment Assets |
Acquisition of Non-Current Segment Assets |
||||
|---|---|---|---|---|---|---|---|
| 2006 | 2005 | 2006 | 2005 | 2006 | 2005 | ||
| Mineral Exploration | 255,660 | 561.458 | 4.802.106 | 4.938.817 | 34.789 | 1,882.364 |
NOTE 25: COMPANY DETAILS
The registered office and principal place of business of the company is: $% \mathcal{N}$
Lake Resources $\mathcal{N}\mathcal{L}$ Level 2
183 North Quay Brisbane Qld 4000
NOTE 26: EVENTS AFTER THE BALANCE SHEET DATE
The financial report was authorised for issue on 28 August 2006.
Notes to the Financial Statements for the year ended 30 June 2006
NOTE 27: FIRST TIME ADOPTION OF AUSTRALIAN EQUIVALENTS TO INTERNATIONAL FINANCIAL REPORTING STANDARDS
| Issued Capital |
Capital Profits Reserve |
Asset Revaluation Reserve |
Retained Earnings |
Total | ||
|---|---|---|---|---|---|---|
| Note | \$ | Ŝ. | \$ | \$ | \$ | |
| Reconciliation of Equity | ||||||
| 1 July 2004 | 5,741,350 | 4,997 | 1.046.612 | (1,894,124) | 4,898,835 | |
| Balance under existing Australian GAAP - make good provision |
a | $\overline{\phantom{a}}$ | (12,083) | (12,083) | ||
| Balance under Australian equivalents to IFRS | 5,741,350 | 4,997 | 1,046,612 | (1,906,207) | 4,886,752 | |
| 30 June 2005 | ||||||
| Balance under existing Australian GAAP | 5,741,350 | 4.997 | 1,046,612 | (1,907,204) | 4,885,755 | |
| - make good provision | a | $\overline{a}$ | (17.083) | (17,083) | ||
| Balance under Australian equivalents to IFRS | 5,741,350 | 4,997 | 1,046,612 | (1,924,287) | 4,868,672 | |
| 2005 5 |
||||||
| Reconciliation of Profit | ||||||
| Profit / (loss )under existing Australian GAAP | (13,080) | |||||
| - make good expense | â | (5,000) | ||||
| Profit under Australian equivalents to IFRS | (18,080) |
(a) Under previous AGAAP the cost of refurbishment was not recognised until the expenditure is incurred, whereas under AIFRS a provision for refurbishment costs must be recognised over the period of the lease, measured at the expected cost of refurbishment at each reporting date.
On 1 July 2004, a provision for makegood costs associated with this operating lease of \$30,000 has been recognised as an asset and a corresponding liability. The amount of asset amortised to the profit and loss to 1 July 2004 is \$12,083 representing the amount that corresponds to the expired portion of the lease to date.
Notes to the Financial Statements for the year ended 30 June 2006
NOTE 28: CHANGE IN ACCOUNTING POLICY
(a) The company has adopted the following Accounting Standards for application on or after 1 January 2005:
-
AASB 132: Financial Instruments: Disclosure and Presentation
-
AASB 139: Financial Instruments: Recognition and Measurement
The changes resulting from the adoption of AASB 132 relate primarily to increased disclosures required under the standard and do not affect the value of amounts reported in the financial statements.
The adoption of AASB 139 has resulted in no material differences in the recognition and measurement of the company's financial instruments.
(b) The following Australian Accounting Standards which have been issued or amended and which are applicable to the company but are not yet effective and have not been adopted in preparation of the financial statements at reporting date.
| AASB Amendment |
AASB Standard affected | Nature of change in Accounting Policy and Impact |
Application Date of the Standard |
Application Date for the Company |
|
|---|---|---|---|---|---|
| 2005-5 | AASB 1: First-time adoption of AIFRS | No change, no impact | January 2006 | E July 2006. | |
| AASB 139: Financial Instruments: Recognition and Measurement | No change, no impact | January 2006 | i July 2006. | ||
| 2005-06 | AASB 3: Business Combinations | No change, no impact | January 2006 | E.July 2006 | |
| 2005-9 | AASB 132: Financial Instruments: Disclosure and Presentation | No change, no impact | January 2006 | E.fuly 2006 | |
| AASB 139: Financial Instruments: Recognition and Measurement | No change, no impact | January 2006 | F.July 2006 | ||
| 2005-10 | AASB 139: Financial Instruments: Recognition and Measurement | No change, no impact | January 2007 | F July 2007 | |
| AASB 101: Presentation of Financial Statements | No change, no impact | January 2007 | F.July 2007 | ||
| AASB 114: Segment Reporting | No change, no impact | January 2007 | F July 2007 | ||
| AASB H7: Leases | No change, no impact | January 2007 | F. July 2007 | ||
| AASB 133: Earnings per Share | No change, no impact | January 2007 | F July 2007 | ||
| AASB 1: First-time adoption of AIFRS | No change, no impact | January 2007 | E July 2007 | ||
| AASB 4: Insurance Contracts | No change, no impact | January 2007 | F July 2007 | ||
| AASB 1023: General Insurance Contracts | No change, no impact | January 2007 | E July 2007. | ||
| AASB 1038: Life Insurance Contracts | No change, no impact | January 2007 | E July 2007 | ||
| New Standard | AASB 7: Financial Instruments: Disclosure | No change, no impact | January 2007 | E July 2007. |
All other pending Standards issued between the previous financial report and the current reporting date have no application to the company.
AASB Standard affected AASB Amendmen AASB 1: First-time adoption of AIFRS 2004-3 AASB 101: Presentation of Financial Statements AASB 124: Related Party Disclosures $2005 - 1$ AASB 139: Financial Instruments: Recognition and Measurement 2005-2 AASB 1023: General Insurance Contracts 2005-4 AASB 139: Financial Instruments: Recognition and Measurement AASB 132: Financial Instruments: Disclosure and Presentation 2005-9 AASB 4: Insurance Contracts AASB 1023: General Insurance Contracts 2006-1 AASB 121: The Effects of Changes in Foreign Exchange Rates AASB 119: Employee Benefits: December 2004
ABN 49 079 471 980
ADDITIONAL INFORMATION FOR LISTED PUBLIC COMPANIES
The shareholder information set out below was applicable as at 28 July 2006.
$\mathbf{1}$ . Twenty Largest Shareholders
The names of the twenty largest holders of each class of listed securities are listed below:
Ordinary Shares
| Name | No of Ordinary Shares Held |
Percentage of Issued Shares |
|---|---|---|
| Kemkay Pty Ltd | 1,869,960 | 7.30% |
| James Clavarino | 1,149,400 | 4.49% |
| Trenlin Pty Limited | 1,061,611 | 4.14% |
| Bushfly Air Charter Pty Ltd | 795,000 | 3.10% |
| Alexandra Marie Clavarino | 500,000 | 1.95% |
| Ross Johnston | 450,010 | $1.76\%$ |
| Perpetual Trustee Company | 408,000 | 1.59% |
| Lake Gold Pty Ltd | 400,000 | 1.56% |
| Peter John Gilchrist | 395,004 | 1.54% |
| Kim Steven Wilhelm | 330,000 | 1.29% |
| James Clement Whiting | 325,657 | 1.27% |
| Batel Pty Ltd | 300,000 | 1.17% |
| Bedel & Sowa Corp Pty Ltd | 300,000 | 1.17% |
| Symington Pty Ltd | 300,000 | 1.17% |
| WA Sourcing Pty Ltd | 300,000 | 1.17% |
| Carmant Pty Ltd | 299,500 | 1.17% |
| Herb McRae | 292,500 | $1.14\%$ |
| Norma Agnes Foots | 270,000 | 1.05% |
| Richard Francis White | 270,000 | $1.05\%$ |
| Rodney Lawrence Dawney | 253,274 | 0.99% |
| Total Top 20 | 10,269,916 | 40.07% |
| Others | 15,338,879 | 59.93% |
| Total Ordinary Shares on Issue | 25,608,795 | 100.00% |
$2.$ Distribution of equity securities
Analysis of security by size of holding - number of security holders $(a)$
| Number of holders | Number of Shares held | |
|---|---|---|
| $1 - 1,000$ | 8 | 4,556 |
| $1,001 - 5,000$ | 73 | 226,381 |
| 5,001 - 10,000 | 195 | 1,724,374 |
| 10,001 - 100,000 | 297 | 9,107,373 |
| $100,001$ – and over | 50 | 14,546,111 |
| 623 | 25,608,795 |
$(b)$ The number of holders of unmarketable parcels is 61.
3. Substantial Shareholders
The following details of substantial shareholders listed in the company's register at 31 July 2006 are:
| Shareholder | Number of Shares | ||
|---|---|---|---|
| Kemkay Pty Ltd | 1,869,960 |
$\overline{4}$ . Voting Rights
Each ordinary share is entitled to one vote when a poll is called, otherwise each member present at a meeting has one vote on a show of hands.
-
- The name of the Company Secretary is Mr Peter Gilchrist.
-
- The address of the principal registered office in Australia is Level 2, 183 North Quay, Brisbane Qld 4000. Telephone (07) 3220-0282.
-
- Registers of securities are held at the following address:
ASX Perpetual Registrars GPO Box 2537 Brisbane Qld 4001
- Stock Exchange Listing
Quotation has been granted for all of the ordinary shares of the company on all Member Exchanges of the Australian Stock Exchange Limited.
- Restricted Securities
There are no restricted securities.
- Use of Cash and convertible assets
During the period from admission to the official list of the Australian Stock Exchange to 30 June 2006, the company has used cash and assets readily convertible to cash in a manner consistent with its business activities. During the year the company was involved in mineral exploration, principally in Pakistan and Argentina.
- Schedule of Tenements as at 30 June 2006
Pakistan Tenements
| Tenement | Number | Area (sq km) |
Lake Interest |
Date of Grant |
Date of Expiry |
|---|---|---|---|---|---|
| Amalaf | $(1)/1059-69$ | 63. | 100% | 20/03/2000 | 19/03/2009 |
| Dasht-i-Gauran | $(4)/1048-58$ | 59 | 100% | 20/03/2000 | 19/03/2009 |
| Koh-i-Sultan | $(3)/1037-47$ | 121 | 100% | 20/03/2000 | 19/03/2009 |