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SUREFIRE RESOURCES NL Interim / Quarterly Report 2010
65857_rns_2010-03-11_e197d86f-85c5-4dcc-b23f-ca5864c7b904.pdf
Interim / Quarterly Report
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BLACK RIDGE MINING NL ACN 083 274 024
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HALF-YEAR FINANCIAL REPORT 31St DECEMBER 2009
BLACK RIDGE MINING NL ABN 48 083 274 024
Half Year Financial Report - 31 December 2009
Contents
| Directors' Report | |
|---|---|
| Lead Auditor's Independence Declaration | |
| Directors' Declaration | 5 |
| Condensed Consolidated Statement of Comprehensive Income | 6 |
| Condensed Consolidated Statement of Financial Position | |
| Condensed Consolidated Statement of Changes in Equity | 8 |
| Condensed Consolidated Statement of Cash Flows | 9 |
| Notes to the Condensed Financial Statements | |
| 10 | |
| Independent Review Report to the Members | 13 |
This interim financial report does not include all the notes of the type normally included in an annual financial report. Accordingly, this report is to be read in conjunction with the annual report for the year ended 30 June 2009 and any public announcements made by Black Ridge Mining NL during the interim reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001.
Your directors submit their report together with the consolidated financial report for the half-year ended 31 December 2009 and the review report thereon.
Directors
The Directors of the company during or since the end of the half-year are:
| Name | Period of directorship |
|---|---|
| Roger Smith | Non-Executive Chairman. Appointed as a Director on 21 February 2005. |
| Appointed as Chairman on 18 September 2008. | |
| Gordon Hatch | Managing Director. Appointed as a Director on 18 September 2008. Appointed as |
| Managing Director on 31 January 2009. | |
| Angus Middleton | Appointed as a Director on 1 January 2009. |
Operating and Financial Review Result of Operations
The consolidated loss from ordinary activities of the Company and its controlled entities for the half year ended 31 December 2009 was $461,149 (31 December 2008 - $687,198)
Review of Operations
The review period ending December 31 2009 continued the Company's focus on driving forwards with the development of the existing mineral tenement in Western Australia and, broadening the outlook into external geographical locations.
As a further development away from our historical interests, the Company in November completed the change from a Company limited by shares, to a Public No Liability Company, as endorsed by a meeting of shareholders at the EGM held in September.
Capital again is an area the directors are very conscious of maintaining tight control over and wherever possible, the cost cutting regime introduced in the previously reported period, continued.
In the review period, the Company issued 100,000,000 fully paid ordinary shares at $0.0053 to raise $530,000 for working capital purposes and a further 29,420,000 shares were issued at $0.01 raising $294,200.00.
Significant agreements were entered into by the Company in respect of the opportunities presented both locally and overseas and are expanded on further into the report.
Western Australia
Unaly Hill - E57/420
As reported in the quarterly reports for the same period, various models of programmed works were evaluated for the continuation of the exploration and resource identification at Unaly Hill.
During the same period the Exclusive Dealing & Non Circumvention Agreement with the Chinese Donghui Group, allowed both parties time to further evaluate historical data and, work on the newer programs.
In November, the Company announced that it had commenced a two hole diamond drilling program at Unaly Hill, in locations identified from the aero magnetics, ground surveys and, 3D modeling. On December 18 the Company announced the results of those drill holes with particular emphasis placed on UH4 which identified large sections of high grade magnetite, vanadium and titanium. The results encouraged the Company to undertake further metallurgical testing to understand more completely, what the options are with the grades produced. It is not expected that those results will be available until late March 2010.
On February 12th the Company announced that the Exclusive Dealing Agreement with Donghui Group had been terminated by mutual consent and, that the contents of that agreement would remain confidential.
71 Mile Well - E57/710
In August the Company announced that the Exclusive Dealing Agreement in place with Mallee Minerals Pty Ltd was available for an extension, on payment of an additional fee. The Company decided not to extend the period and accordingly, the agreement was terminated.
Overseas
Indonesia
As announced on December $7th$ , the Company entered into an Exclusive Dealing Agreement with Indonesian company PT Inmas Abadi in relation to their sub-bituminous coal deposit in Bengkulu Province, on the island of Sumatra. Under the agreement, the Company has the exclusive right for a period of 5 months, to undertake due diligence of the KP coal concession held and in particular, will be verifying the legal and geological data provided by the vendor.
The concession has a total area of 7,687ha of which, data has been provided for testing on a 1,000ha block and more particularly in a specific 300ha part of that location lot. Early documentary indications and general discussions, lends weight to the claim by the vendor that an extensive resource may be present; if confirmed, this will form the basis of the negotiations for either a JV with the vendor or, outright acquisition.
The Bengkulu Province is one of the most significant coal producing regions in Indonesia with the market feeding into the power grid system run by the government power utility PT Perusahaan Listrik Negara (PLN).
The Company continues to explore the availability of further concessions in Sumatra and Kalimantan and is confident of the new mining laws being conducive to overseas investor companies.
Philippines
During the reporting period, the Company has been presented with a number of opportunities to evaluate within the gold industry, which to date, have not produced any positive outcome.
We will be continuing these evaluations however, to enable us to broaden our outlook and add further value for the shareholders.
It is anticipated that these opportunities will be scaled back during the coming elections, due to be held in May.
Lead Auditor's Independence Declaration under Section 307C of the Corporations Act 2001
The lead auditor's independence declaration is set out on the next page and forms part of the Directors' Report for the half year ended 31 December 2009.
Signed in accordance with a resolution of the directors.
Repared
Gordon S.Hatch Managing Director
Dated at Perth this 12th day of March 2010.
K.WESTAWAY & ASSOCIATES CHARTERED ACCOUNTANTS
AUDITOR'S INDEPENDENCE DECLARATION UNDER SECTION 307C OF THE CORPORATIONS ACT 2001
$\sim$ $\sigma$
TO THE DIRECTORS OF BLACK RIDGE MINING NL
I declare that, to the best of my knowledge and belief, in relation to the review for the financial period ended 31 December, 2009, there have been:
- $(i)$ no contraventions of the auditor independence requirements as set out in the Corporations Act 2001 in relation to the review; and
- $(ii)$ no contraventions of any applicable code of professional conduct in relation to the review.
Dated at Subiaco this 12th day of March, 2010
K. WESTAWAY FCA PRINCIPAL K. WESTAWAY & ASSOCIATES CHARTERED ACCOUNTANTS
Liability limited by a scheme approved under Professional Standards Legislation Suite 7, 29 Hood Street, Subiaco, WA 6008 | PO Box 1936, Subiaco, WA 6904 Phone: (08) 6380 2300 | Fax: (08) 9382 3884 | Email: [email protected]
Kelvin Westaway FCA
The directors of Black Ridge Mining NL declare that:
- (a) the financial statements and notes, set out on pages 6 to 12, are in accordance with the Corporations Act 2001, including:
- giving a true and fair view of the financial position of the economic entity as at 31 $(i)$ December 2009 and of its performance for the half-year ended on that date; and
- complying with Australian Accounting Standard AASB 134 "Interim Financial $(ii)$ Reporting" and the Corporations Regulations 2001; and
- (b) there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.
Signed in accordance with a resolution of the directors.
Reporte
Gordon S. Hatch Managing Director
Dated at Perth this 12th day of March 2010.
| Consolidated | ||
|---|---|---|
| 3 1December2009$ | 31December2008$ | |
| Other revenues | 6,000 | |
| Financial income | 34,838 | 25,180 |
| 34,838 | 31,180 | |
| Expenses | ||
| Administration | 207,182 | |
| Depreciation | 372,096 | |
| Employee benefits expense | 2,117 | 11,268 |
| Exploration expenditure | 139,067 | 211,122 |
| Finance costs | 131,841 | 92,628 |
| Occupancy expenses | 2,908 | |
| 15,780 | 28,356 | |
| 495,987 | 718,378 | |
| Loss before income tax expense | (461, 149) | (687, 198) |
| Income tax expense | ||
| Net loss for the period | (461, 149) | (687,198) |
| Earnings per share | ||
| Basic loss per share (cents per share) | (0.12) | (0.33) |
The company's potential ordinary shares are not considered dilutive and accordingly basic loss per share is the same as diluted loss per share. i.
The above condensed consolidated statement of comprehensive income should be read in conjunction with the accompanying notes.
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION As at 31 December 2009
Black Ridge Mining NL
U
| Consolidated | |||
|---|---|---|---|
| 31 December2009$ | 30 June2009$ | ||
| Current AssetsCash and cash equivalents | |||
| Trade and other receivables | 626,22132,118 | 158,671 | |
| Financial assets | 23,100 | 41,660 | |
| Other | 67,174 | 67,174 | |
| Total Current Assets | 748,613 | 267,505 | |
| Non-Current Assets | |||
| Property, plant & equipment | 16,325 | 18,260 | |
| Exploration expenditure | 140,000 | 140,000 | |
| Total Non-Current Assets | 156,325 | 158,260 | |
| Total Assets | 904,938 | 425,765 | |
| Current Liabilities | |||
| Trade and other payablesShort term provisions | 217,183 | 90,774 | |
| 12.903 | 4.790 | ||
| Total Current Liabilities | 230,086 | 95,564 | |
| Total Liabilities | 230,086 | ال التي95,564 | |
| Net Assets | 674,852 | 330,201 | |
| Equity | |||
| Issued capital | 17,360,760 | 16,568,360 | |
| Reserves | 236,750 | 223,350 | |
| Accumulated losses | (16,922,658) | (16, 461, 509) | |
| Total Equity | 674,852 | 330,201 |
The above condensed consolidated statement of financial position should be read in conjunction with the accompanying notes.
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY For the half-year ended 31 December 2009
Black Ridge Mining NL
$\overline{\phantom{a}}$
H
| Consolidated | ShareCapital | AccumulatedLosses | Reserves | Total |
|---|---|---|---|---|
| Balance at 1 July 2008 | 16,338,360 | (15, 458, 988) | 235,590 | 1,114,962 |
| Shares issued during the year | ||||
| Share based payments | ||||
| Net loss recognised directly in equity | (687, 198) | (687, 198) | ||
| Share issue costs | ||||
| Balance as at 31 December 2008 | 16,338,360 | (16,146,186) | 235,590 | 427,764 |
| Balance at 1 July 2009 | 16,568,360 | (16,461,509) | 223,350 | 330,201 |
| Shares issued during the year | 824,200 | 824,200 | ||
| Share based payments | 13,400 | 13,400 | ||
| Net loss recognised directly in equity | (461, 149) | (461, 149) | ||
| Share issue costs | $(31,800)^T$ | (31,800) | ||
| Balance as at 31 December 2009 | 17,360,760 | (16,922,658) | 236,750 | 674,852 |
The above condensed consolidated statement of changes in equity should be read in conjunction with the accompanying notes.
$\boldsymbol{8}$
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS For the half-year ended 31 December 2009
Black Ridge Mining NL
| Consolidated | |||
|---|---|---|---|
| 31 December2009$ | 31 December2008$ | ||
| Cash flows from operating activities | |||
| Cash receipts from customers | |||
| Payments to suppliers and employees | (374, 488) | (669, 906) | |
| Cash used in operations | (374, 488) | (669, 906) | |
| Finance costs | (2,908) | ||
| Interest received | 6,325 | 25,180 | |
| Net cash used in operating activities | (368, 163) | (647, 634) | |
| Cash flows from investing activitiesProceeds from sale of held for trading investmentsAcquisition of other non current assetsAcquisition of other current assets | 43,313 | (50,000) | |
| Net cash used in investing activities | 43,313 | (50,000) | |
| Cash flows from financing activitiesProceeds from issue of equity securitiesShare Issue costsProceeds from borrowingsRepayment of borrowings | 824,200(31,800) | ||
| Net cash provided by financing activities | 792,400 | ||
| Net increase/(decrease) in cash and cashequivalents | 467,550 | (697, 634) | |
| Cash and cash equivalents at beginning of halfyear | 158,671 | 1,123,977 | |
| Cash and cash equivalents at end of half year | 626,221 | 426,343 |
The above condensed consolidated statement of cash flows should be read in conjunction with the accompanying notes.
Note 1: Basis of Preparation of the Half-Year Financial Report
This general purpose condensed financial report for the half year ended 31 December 2009 has been prepared in accordance with AASB 134 Interim Financial Reporting and the Corporations Act 2001.
It is recommended that the half-year financial report be read in conjunction with the annual financial report for the year ended 30 June 2009 and considered with any public announcements made by Black Ridge Mining NL during the half-year ended 31 December 2009 in accordance with continuous disclosure obligations of the ASX Listing Rules.
The accounting policies adopted are consistent with those of the previous financial year and corresponding interim reporting period.
The half-year report does not include all notes of the type normally included within the annual financial report and therefore cannot be expected to provide as full an understanding of the financial performance, financial position and financing and investing activities of the consolidated entity as the full financial report.
The accounting policies and methods of computation adopted in the preparation of the half year financial report are consistent with those adopted and disclosed in the Company's annual financial report for the financial year ended 30 June 2009.
In the half year ended 31 December 2009, the Company has reviewed all of the new and revised Standards and Interpretations issued by the AASB that are relevant to its operations and effective for annual reporting periods beginning on or after 1 January 2009.
It has been determined by the Company that there is no impact, material or otherwise, of the new and revised Standards and Interpretations on its business and, therefore, no change is necessary to the Company's accounting policies. The disclosure requirements of AASB 101 have been adopted.
The half year report has been prepared on an accruals basis and is based on historical costs modified by the revaluation of selected financial assets and financial liabilities for which the fair value basis of accounting has been applied.
Going concern
The financial report has been prepared on a going concern basis, which contemplates the continuity of the normal business activities and the realisation of assets and settlement of liabilities in the normal course of business.
For the half year ended 31 December 2009 the consolidated entity incurred a loss of $461,149 and an operating cash outflow of $368,163. The Company plans to raise additional capital in the near future to enable it to continue its exploration activities . It is considered that the Company should achieve sufficient funds from capital raising to meet its obligations. If the Company is unable to continue as a going concern, then it may be required to realise its assets and extinguish its liabilities, other than in the normal course of business, and at different amounts from those stated in the financial report. The Directors hold the view that Black Ridge Mining NL has adequate cash reserves, funding facilities and prospects to allow it to pay its debts as and when they fall due, and thus the Directors believe that it is appropriate to prepare the financial report on a going concern basis.
Note 2: Segment Reporting
The Company operates in predominantly one business and geographical segment, being mineral exploration in Australia
NOTES TO THE CONDENSED FINANCIAL STATEMENTS For the half-year ended 31 December 2009
Black Ridge Mining NL
| Note 3: Issued Capitala) Composition | 7. | 31December2009 | 30June2009 | ||
|---|---|---|---|---|---|
| $ | $ | ||||
| 401,578,361 Fully paid ordinary shares(30 June 2009: 272,158,361) | 17,360,760 | 16,568,360 | |||
| b) Movement in shares on issue | Shares31December2009 | Shares30June2009 | 31December2009S | 30June2009S | |
| - Opening balance- Fully paid ordinary shares issued during | 272,158,361 | 207,158,361 | 16,568,360 | 16,338,360 | |
| the period | 129,420,000 | 65,000,000 | 824,200 | 230,000 | |
| - Less expenses of the issue | (31, 800) | ||||
| Issued capital at the end of the financial period | 401,578,361 | 272,158,361 | 17,360,760 | 16,568,360 |
c) Share Options
As at 31 December 2009, there are 116,350,000 (30 June 2009: 113,350,000) unissued ordinary shares in respect of which options were outstanding comprising:
| Number of Options | Exercise Price | Expiry Date | |
|---|---|---|---|
| 101,150,00010,500,0001,700,0001,000,0001,000,0001,000,000 | listedunlistedunlistedunlistedunlisted | 0.030.100.040.040.07 | 30 November 201031 December 201131 December 201030 November 201230 November 2012 |
| unlisted | 0.10 | 30 November 2012 |
Terms and conditions of contributed equity
Ordinary shares
Ordinary shares have the right to receive dividends as declared and, in the event of winding up the company, to participate in the proceeds from the sale of all surplus assets in proportion to the number of and amounts paid up on shares held. Ordinary shares entitle their holder to one vote. either in person or by proxy, at a meeting of the company.
| d) Option Reserve | 31 December2009 | 30 June2009 |
|---|---|---|
| Opening balance | 223,350 | 235,590 |
| Share based payments | 13,400 | |
| Transfer to accumulated losses | (12,240) | |
| 236,750 | 223,350 |
On 24 November 2009, 3,000,000 unlisted options were issued to Mr Gordon Hatch, the Managing Director of the Company. The fair value of the options was measured at grant date using the Binomial Option Pricing Model.
Note 4: Dividends
No dividends were paid or proposed during the half year ended 31 December 2009.
Note 5: Contingent Liabilities and Contingent Assets
The economic entity does not have any contingent assets or liabilities outstanding at 31 December 2009.
Note 6: Events Subsequent to Reporting Date
On February 12th the Company announced that the Exclusive Dealing Agreement with Donghui Group in respect of the Unaly Hill tenement (E57/420) had been terminated by mutual consent and, that the contents of that agreement would remain confidential.
There has been no other matters or circumstances that have arisen since 31 December 2009 that has significantly affected or may significantly affect:
- (a) the economic entity's operations in future years; or
- (b) the results of those operations in future years; or
- (c) the economic entity's state of affairs in future years.
K.WESTAWAY & ASSOCIATES CHARTERED ACCOUNTANTS
INDEPENDENT AUDITOR'S REVIEW REPORT TO THE MEMBERS OF BLACK RIDGE MINING NL
Report on the Half-Year Financial Report
I have reviewed the accompanying half-year financial report of Black Ridge Mining NL, which comprises the condensed statement of financial position as at 31 December, 2009, the condensed statement of comprehensive income, condensed statement of changes in equity and condensed statement of cash flows for the half-year ended on that date, a condensed statement of accounting policies, other selected explanatory notes and the directors' declaration.
Directors Responsibility for the Half - Year Financial Report
The directors of Black Ridge Mining NL are responsible for the preparation and fair presentation of the half-year financial report in accordance with Australian Accounting Standards (including the Australian Accounting Interpretations) and the Corporations Act 2001. This responsibility includes designing, implementing and maintaining internal controls relevant to the preparation and fair presentation of the half-year financial report that is free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.
Auditor's Responsibility
My responsibility is to express a conclusion on the half year financial report based my review. I conducted my review in accordance with Auditing Standard on Review Engagements ASRE 2410 Review of Interim And Other Financial Reports Performed by the Independent Auditor of the Entity, in order to state whether, on the basis of the procedures described. I have become aware of any matter that makes me believe that the financial report is not in accordance with the Corporations Act 2001 including giving a true and fair view of the company's financial position as at 31 December, 2009 and its performance for the half-year ended on that date; and complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001. As the auditor of Black Ridge Mining NL, ASRE 2410 requires that I comply with the ethical requirements relevant to the audit of the annual financial report.
A review of a half-year financial report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable me to obtain assurance that I would become aware of all significant matters that might be identified in an audit. Accordingly, I do not express an audit opinion.
My review did not involve an analysis of the prudence of business decisions made by the directors or management.
Liability limited by a scheme approved under Professional Standards Legislation Suite 7, 29 Hood Street, Subiaco, WA 6008 | PO Box 1936, Subiaco, WA 6904 Phone: (08) 6380 2300 | Fax: (08) 9382 3884 | Email: kelvin [email protected]
Kelvin Westaway FCA
Independence
In conducting my review, I have complied with the independence requirements of the Corporations Act 2001. I confirm that the independence declaration required by the Corporations Act 2001, has been provided to the directors of Black Ridge Mining NL on 12th March, 2010.
Conclusion
Based on my review, which is not an audit I have not become aware of any matter that makes me believe that the half-year report of Black Ridge Mining NL is not in accordance with the Corporations Act 2001 including:
- $(a)$ giving a true and fair view of the company's financial position as at 31 December, 2009 and of its performance for the half-year ended on that date; and
- complying with Accounting Standard AASB 134 Interim Financial Reporting $(b)$ and the Corporations Regulations 2001.
Inherent Uncertainty Regarding Going Concern
Without qualification to the review opinion expressed above, attention is drawn to the following matter:
As referred to in Note 1 to the financial statements, the financial statements have been prepared on the going concern basis. At 31 December, 2009 the consolidated entity had cash and cash equivalents of $ 626,221, and working capital of $ 518,527. For the half year ended 31 December, 2009 the consolidated entity incurred an operating loss of $461,149, and had an operating cash outflow of $368,163. The ability of the consolidated entity to continue as a going concern and meet the planned project review, administration and other commitments is subject to the successful recapitalisation of the Company. In the event that the Board is not successful in raising further funds, the consolidated entity may not be able to continue as a going concern.
Dated at Subiaco this 12th day of March, 2010.
K. WESTAWAY PRINCIPAL
K. WESTAWAY & ASSOCIATES CHARTERED ACCOUNTANTS