METALS AUSTRALIA LTD — Interim / Quarterly Report 2003

Mar 13, 2003

Half Yearly Report 31 December 2002

HALF YEARLY REPORT For the Half Year Ended 31 December 2002

Company Directory	3
Directors' Report	4
Condensed Statement of Financial Performance	6
Condensed Statement of Financial Position	7
Condensed Statement of Cash Flows	8
Notes to the Financial Statements	9
Directors' Declaration	11
Independent Review Report	12

COMPANY DIRECTORY

DIRECTORS

Hersh Solomon Majteles

Alexander Clemen

Robert John Collins

COMPANY SECRETARIES

Robert John Collins

Bruce Russell McCullagh

REGISTERED OFFICE

1^st Floor, 8 Parliament Place WEST PERTH WA 6005

Telephone:	94817833
Facsimile:	94817835

SHARE REGISTRY

Computershare Investor Services Level 2 Reserve Bank Building 45 St Georges Terrace PERTH WA 6000

AUDITORS

Stanton Partners 1 Havelock Street WEST PERTH WA 6005

STOCK EXCHANGE LISTING

The Company is listed on the Australian Stock Exchange Limited Perth, Western Australia Home Exchange:

Australian Stock Exchange Limited Code: AUL

DIRECTORS' REPORT

The Board of Directors of Australian United Gold Ltd has pleasure in submitting the statement of financial position of the company at 31 December 2002, together with the statement of financial performance and statement of cash flows for the half year then ended and report as follows:-

DIRECTORS

The names and particulars of the directors of the company in office during or since the end of the half year are:-

Name	Particulars
H S Majteles LLB (Chairman)	Mr Majteles joined Australian United Gold Ltd on March 6 1987 and is the Chairman of the Company. He is also a Director of a number of public companies.
R J Collins Dp.Acc	Mr Collins joined Australian United Gold Ltd on February 27 1992 as a Director of the Company. He is also a Director of a number of public companies.
A Clemen B.Sc(Hons) M.Aus. I.M.M	Mr Clemen joined Australian United Gold Ltd on March 6 1987 as a Director.

DIRECTORS' SHAREHOLDINGS

At the date of this report the interests of the directors in the shares and other equity securities of the company and related bodies corporate were:-

Director	Interest	Ordinary Shares
HS Majteles	Indirect	950,000
R J Collins	Indirect	500,000

DIRECTORS' REPORT

DIRECTORS' MEETINGS

During the six month financial period the company held two meetings of directors. The attendance of directors at that meeting of the Board was:-

	Number Attended	Eligible to Attend
H S Majteles
R J Collins
A Clemen

RESULTS

The loss of the company for the half year was \$119,580.

REVIEW OF OPERATIONS

At the date of this Report the Company had a strategic investment in listed companies, Kalrez Energy Ltd and Tiger Resources Ltd and the investments had a market value of approximately \$126,000.

It is recommended that this half yearly report be read in conjunction with the 30 June 2002 Annual Report and any public announcements made by the Company during the half year in accordance with the continuous disclosure obligations of the Corporations Act 2001 and Australian Stock Exchange.

DIRECTORS' BENEFITS

Since the end of the previous financial year, no director has received or become entitled to receive a benefit, other than benefits disclosed in the financial statements of the fixed salary of a full-time employee of the company or a related body corporate, by reason of a contract made by the company or a related body corporate with the director or with a firm of which he is a member, or with a company in which he has a substantial financial interest, except as follows:-

• Mr Collins received payments for the provision of consultancy services to the Company.

This report has been made in accordance with a resolution of Directors.

R J Collins Director

Perth 11^th March 2003

CONDENSED STATEMENT OF FINANCIAL PERFORMANCE For the Half Year Ended 31 December 2002

	Note	31 December 2002 S	31 December 2001 S
Revenue from ordinary activities
Interest income		14,163	2,026
Operating Costs
Depreciation		2,034	2,034
Management fees		50,115	45,627
Diminution in value of investments		13,000	33,299
Other operating costs from ordinary activities		68,594	64,446
		133,743	145,406
Loss from ordinary activities before income tax expense		(119,580)	(143, 380)
Income tax expense relating to ordinary activities
Loss from ordinary activities after income tax expense	$\overline{2}$	(119, 580)	(143,380)
Basic loss per share (cents)		(0.07)	(0.13)

The accompanying notes form an integral part of the statement of financial performance.

CONDENSED STATEMENT OF FINANCIAL POSITION At 31 December 2002

	Note	31 December 2002	30 June 2002	31 December 2001
CURRENT ASSETS		S	S	S
Cash assets		574,367	806,817	75,684
Receivables		7,817	9,408	4,841
TOTAL CURRENT ASSETS		582,184	816,225	80,525
NON-CURRENT ASSETS
Equipment		7,120	9,154	11,188
Investments		126,484	53,484	138,650
TOTAL NON-CURRENT ASSETS		133,604	62,638	149,838
TOTAL ASSETS		715,788	878,863	230,363
CURRENT LIABILITIES
Payables		4,250	47,745	8,588
TOTAL CURRENT LIABILITIES		4,250	47,745	8,588
TOTAL LIABILITIES		4,250	47,745	8,588
NET ASSETS		711,538	831,118	221,775
EQUITY
Contributed equity		13,647,398	13,647,398	12,606,261
Option premium reserve		53,625	53,625
Accumulated losses	$\sqrt{2}$	(12,989,485)	(12,869,905)	(12, 384, 486)
TOTAL EQUITY		711,538	831,118	221,775

The accompanying notes form an integral part of the statement of financial position.

CONDENSED STATEMENT OF CASH FLOWS For the Half Year Ended 31 December 2002

	31 December 2002 S	31 December 2001 S
CASH FLOWS FROM OPERATING
ACTIVITIES
Payments to suppliers	(158, 595)	(104, 721)
Interest received	12,145	2,258
Net cash used in operating activities	(146, 450)	(102, 463)
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for investments	(86,000)
Net cash used in investing activities	(86,000)
Net decrease in cash held	(232, 450)	(102, 463)
Cash at the beginning of the half year	806,817	178,147
Cash at the end of the half year	574,367	75,684

The accompanying notes form an integral part of the statement of cash flows.

NOTES TO THE FINANCIAL STATEMENTS

$\mathbf{1}$ . RASIS OF PREPARATION

This general purpose financial report has been prepared for the half year ended 31 December 2002 in accordance with the requirements of the Corporations Act 2001. Australian Accounting Standard AASB 1029: Interim Financial Reporting, Urgent Issues Group Consensus Views and other authoritative pronouncements of the Australian Accounting Standards Board. It is recommended that this report should be read in conjunction with the 30 June 2002 Annual Report and any public announcements made by Australian United Gold Ltd during the half-year in accordance with the continuous disclosure obligations of the Corporations Act 2001 and Australian Stock Exchange Listing Rules.

The accounting policies applied by the Company are consistent with those of the previous financial year and corresponding half year. For the purpose of preparing these half year financial statements, the half year has been treated as a discreet reporting period.

The half-year report does not include full disclosures of the type normally included in an annual financial report.

31 December 31 December 2002 2001 $\mathbf S$ $\mathbf S$ Accumulated losses at the beginning of the period $(12,869,905)$ $(12, 241, 106)$ Loss for the six month period $(119,580)$ $(143,380)$ Accumulated losses at the end of the half year $(12,989,485)$ $(12, 384, 486)$

$2.$ ACCUMULATED LOSSES

$\overline{3}$ . EARNINGS PER SHARE

Weighted average number of shares on
issue during the period used in the
calculation of basic earnings per share.	179,608,765	109,608,765

$\overline{4}$ . SUBSEQUENT EVENTS

During January 2003 the Company sold all of the 20,030,222 shares it held in Kalrez Energy Ltd, generating cash of \$170,272 and a profit of \$54,490.

NOTES TO THE FINANCIAL STATEMENTS

$5.$ CONTINGENT LIABILITIES

There have been no changes in contingent liabilities since the last reporting date.

SEGMENT REPORTING $6.$

The Company's operations are in the mining industry in the Guinea Republic.

	Australia	Australia	Guinea	Guinea	Consolidated
	2002	2001	2002	2001	2002	2001
	\$	\$	\$	\$	\$	\$
Revenue	14,163	2,026			14,163	2,026
Share of net loss	119,580	143,380			119,580	143,380
Income tax expense
Net Loss after tax	119,580	143,380			119,580	143,380
Segment Assets	715,788	230,363			715,788	230,363
Segment liabilities	4,250	8,588		-	4,250	8,588
Net Assets	711,538	221,775			711,538	221,775

DIRECTORS' STATEMENT

The Directors of the company declare that:

• $\mathbf{1}$ . The financial statements and notes, as set out on pages 6 to 10:
• comply with Accounting Standards, the Corporations Regulations 2001 and other $(a)$ mandatory reporting requirements; and
• give a true and fair view of the company's financial position as at 31 December 2002 $(b)$ and performance as represented by the results of its operations and its cashflow for the half year ended on that date.
• 1. In the Directors' opinion:
• there are reasonable grounds to believe that the company will be able to pay its $(a)$ debts as and when they become due and payable.
• the financial statements and the notes thereto are in accordance with the $(b)$ Corporations Act 2001.

SIGNED in accordance with a resolution of the Directors on behalf of the Board.

R J Collins DIRECTOR

11^th March 2003

INDEPENDENT REVIEW REPORT

STANTON PARTNERS

LEAVER ONE STREET WEST PERTH 6005 WESTERN AUSTRALIA

TELEPHONE: (08) 9481 3188 Facainse: (38) 9321-1234

Sus astea@terton.com

INDEPENDENT REVIEW REPORT TO THE MEMBERS OF AUSTRALIAN UNITED GOLD LIMITED

Scope

We have reviewed the financial report of Australian United Gold Limited (the Company) for the half-year ended 31 December 2002 as set out on pages 6 to 11. The Company's directors are responsible for the financial report. We have performed an independent review of the financial report in order for the Company to lodge the financial report with the Australian Securities and Investments Commission. This review was performed in order to state whether, on the basis of the procedures described, anything has come to our attention that would indicate that the financial report is not presented fairly in accordance with Accounting Standard AASB 1029: Interim Financial Reporting, other mandatory professional reporting requirements in Australia and the Corporations Act 2001, so as to present a view which is consistent with our understanding of the Company's financial position, and performance as represented by the results of its operations and its cash flows.

Our review has been conducted in accordance with Australian Auditing Standards applicable to review engagements. The review is limited primarily to inquiries of company personnel and analytical procedures applied to the financial data. These procedures do not provide all the evidence that would be required in an audit, thus the level of assurance provided is less than that given in an audit. We have not performed an audit and, accordingly, we do not express an audit opinion.

Auc Aussi (64) 7603-4118 av: 1818

Resistance Proposition Standart Pastnars Australiasie Pty Ltd. A.B.M. 60 948 259 529 se de letou los Una Standard Partesas Lind Trust

INDEPENDENT REVIEW REPORT

Statement

Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the financial report of the Company is not in accordance with:

• (a) the Corporations Act 2001, including:
• giving a true and fair view of the Company's financial position as at 31 December $\mathbf{G}$ 2002 and of its performance for the half-year ended on that date; and
• (ii) complying with Accounting Standard AASB 1029: Interim Financial Reporting and the Corporations Regulations 2001; and
• other mandatory professional reporting requirements, $(b)$

STANTON PARTNERS

Standar Tentier

J P Van Dieren Partner

Perth, Western Australia 14 March 2003