TIDMNSN TIDMUEP
RNS Number : 5523F
Natasa Mining Limited
24 May 2013
NATASA MINING LTD
("Natasa" or the "Company")
Final Results for the year ended 31 December 2012
The Directors present the results of Natasa Mining Ltd
("Company") and of the consolidated entity, being the Company and
its subsidiaries ("Group") and the Group's interest in associates,
for the year ended 31 December 2012.
The financial report has been presented in United States dollars
which is the Group's functional currency.
REVIEW OF OPERATIONS AND STATE OF AFFAIRS
Fox Creek Coal Project, Canada (direct interest 100%) In
September 2011, the Group completed the acquisition of the Fox
Creek coal project at which time the project constituted six coal
leases, covering an area of 22,688 ha at Fox Creek, Alberta, Canada
which have had substantial exploration, drilling and processing
studies conducted on them in past years ("Fox Creek East"). A
Competent Person's Report (prepared in January 2013 by an
internationally recognised expert and reported in compliance with
Canadian NI 43-101 requirements) showed that the Fox Creek East
leases contain a measured, indicated and inferred thermal coal
resource of 870 million tonnes, of which 777 million tonnes are
measured and indicated, as follows:
Fox Creek East Sub-bituminous C
Resources as of 23 January 2012 '000
Tonnes
Measured 431,073
Indicated 345,898
---------
Total Measured and Indicated 776,971
---------
Inferred 92,617
On 3 October 2012 the Government of Alberta, Canada granted to
the Company additional coal bearing leases over 19,008 Ha at Fox
Creek, Alberta ("Fox Creek West"). Fox Creek West was originally
extensively drilled by Shell Canada Limited which, in 1991,
identified 543 million tonnes of in place coal resources. These
resources are not currently compliant with the Canadian NI 43-101
guidelines.
The coal resources in the Company's Fox Creek Coal Project (Fox
Creek West + East) total approximately 1.4 billion tonnes.
During the year, licence fees amounting to $0.2 million and
third-party costs amounting to $0.3 million have been capitalised
to the intangible asset.
PNG Petroleum Project, Papua New Guinea (indirect interest
12.8%) In September 2011, the Company's associate, UMC Energy plc,
acquired one on-shore (PPL 378) and two off-shore (PPLs 374 and
375) Petroleum Prospecting Licences ("PPLs") in Papua New Guinea
through the acquisition of PNG Energy Limited ("PNG Energy") and
that company's wholly owned subsidiary Gini Energy Limited ("Gini
Energy"). Subsequently, in May 2012, Gini Energy was granted a
further on-shore licence, PPL 405, by the government of Papua New
Guinea.
On 26 March 2012, UMC Energy entered transformational agreements
with CNOOC Australia Limited ("CNOOC"), a subsidiary of CNOOC
Limited, the Chinese multi-national oil and gas company listed on
the New York and Hong Kong Stock Exchanges, whereby CNOOC
subscribed for a 70% equity interest in PNG Energy and UMC Energy
retained a 30% equity interest.
Pursuant to the agreements, and in consideration for the share
subscription, CNOOC will be responsible for funding all exploration
and appraisal expenditure in respect of the PPLs up to commercial
development. Such expenditure will be repaid to CNOOC out of
production revenues and off take of oil and gas once the assets of
Gini Energy enter production, should such production occur. If
exploration and appraisal work indicates the probable existence of
commercial reservoirs of oil or gas in any part of the PPLs at the
end of the exploration phase, the parties must each finance their
pro-rata share of all expenditure required in respect of the
development plan, either themselves or by procuring sufficient
finance from a third party.
2D seismic acquisition and four initial wells are planned during
the first four year term of the permits, two wells on-shore and two
off-shore at an estimated cost for the work programmes of circa
$450 million. It is also likely that 3D seismic will be acquired
over the most prospective leads in the offshore permits prior to
drilling. (Note that this anticipated expenditure is a UMC Energy
management estimate which has not yet been budgeted or approved by
the PNG Energy Ltd Group; the expenditure actually incurred in due
course would form part of CNOOC's non-recourse loan).
The onshore PPLs are adjacent to existing oil and new gas
pipeline infrastructure recently built for the PNG LNG Project - a
$19 billion investment to supply major LNG customers in Asia and
anticipated to commence production in 2014.
Since March 2012, CNOOC has been conducting various technical
studies and has been mobilising to conduct on-site exploration
activities, including procurement of existing data and new seismic
acquisition.
Separately, UMC Energy engaged 3D-GEO Pty Limited ("3D-GEO"), a
Melbourne based firm of consulting petroleum engineers, considered
to be highly experienced with regard to Papua New Guinea petroleum
structural and geological interpretation, to review the available
geological data, identify leads and prospects, quantify any
contingent resources and prospective resources and provide
technical advice in regard to the permits.
In relation to PPL 378 (west), the Paua-1 well drilled in 1996
by BP is a declared discovery with gas encountered in the Toro
sands and oil recovered from a 33 metre gross oil column in the
Iagifu sands. Independent expert assessment of the well logs,
seismic data and geological structural modelling has provided the
following estimated Contingent Resource and Prospective Resource
values, prepared in accordance with Petroleum Resources Management
System ("PRMS") sponsored by the Society of Petroleum
Engineers.
The following table presents the recoverable Contingent Resource
values for the Paua Discovery.
All values GROSS RISK
in MMbbls* FACTOR
or BCF*
---------------- --------------------------------------------- --------
PPL 378 Low Estimate Best
Operator: 1C Estimate High Estimate
CNOOC 2C
---------------- ------------- ---------- ------------------ --------
3C(a) 3C(b)
---------------- ------------- ---------- -------- -------- --------
Oil Contingent
Resource 0.44 11.28 67.96 6 .5
---------------- ------------- ---------- -------- -------- --------
Total for
Oil 0.44 11.28 67.96 6
---------------- ------------- ---------- -------- -------- --------
Gas Contingent
Resource 20 5.6 336.8 793.6 .5
---------------- ------------- ---------- -------- -------- --------
Total for
Gas 20 5.6 336.8 793.6
---------------- ------------- ---------- -------- -------- --------
*Note: MMbbls = million barrels of recoverable oil, BCF =
billion standard cubic feet of recoverable gas
The 1C and 2C cases only consider hydrocarbon resources in the
forelimb of the structure. It would be unusual for only the
forelimb to be charged as depicted, but as the Paua-1 well only
intersected this part of the Paua structure, accordingly the
estimates are based on this actual intersection data. The 3C cases
consider charge in the backlimb of the structure, either gas or
oil.
The prospectivity review of PPL378 (west) also identified Poro,
an untested structure. Probabilistic volumes of (Gross) potential
resources calculated by Monte Carlo simulations have provided the
following values within the permit:
PPL378 (west) Recoverable Oil (MMbbls) Recoverable Gas (Bcf)
Poro Lead
--------------- ----------------------------- --------------------------
Reservoir P90 P50 P10 P90 P50 P10
--------------- -------- -------- --------- ------- ------- --------
Toro & Iagifu 14 127 1150 31.7 238.5 1796.8
--------------- -------- -------- --------- ------- ------- --------
The prospectivity review of PPL378 (east) identified two
untested structures, Lead A and Lead B. Probabilistic volumes of
(Gross) potential resources calculated by Monte Carlo simulations
have provided the following values within the permit:
PPL378 (east) Recoverable Oil (MMbbls) Recoverable Gas (Bcf)
Lead A
--------------- ----------------------------- --------------------------
Reservoir P90 P50 P10 P90 P50 P10
--------------- ------- --------- --------- ------- ------- --------
Toro & Iagifu 69.9 320.0 1465.3 131.4 484.4 1819.8
--------------- ------- --------- --------- ------- ------- --------
PPL378 (east) Recoverable Oil (MMbbls) Recoverable Gas (Bcf)
Lead B
--------------- ----------------------------- --------------------------
Reservoir P90 P50 P10 P90 P50 P10
--------------- ------- --------- --------- ------- ------- --------
Toro & Iagifu 29.9 139.5 655.7 60.9 218.5 797.4
--------------- ------- --------- --------- ------- ------- --------
In relation to PPL 405, the Wasuma-1 well drilled in 2010 by Oil
Search Ltd encountered a 4.7 metre oil column in the Iagifu B sands
within the Wasuma structure. Independent analysis of the well log
and seismic data combined with geological modelling suggests the
well may have been drilled in a poor location and the structure has
an estimated potential for a significant recoverable oil
Prospective Resource ranging from 7 MMbbls (P90) to 190 MMbbls
(P10), as detailed below. The Wasuma structure is located within
the PPL405 permit held by Gini.
All values GROSS RISK FACTOR
in MMbbls*
----------------- --------------------------------------------- ------------
PPL 405 Low Estimate Best Estimate High Estimate
Operator: 1C 2C 3C
CNOOC
----------------- ------------- -------------- -------------- ------------
Oil Prospective
Resource 7.21 37.34 193.28 .25
----------------- ------------- -------------- -------------- ------------
Total for
Oil 7.21 37.34 193.28
----------------- ------------- -------------- -------------- ------------
The prospectivity review of PPL405 has also identified three
untested structures, Lead C, Warra Deep and Lead D. Probabilistic
volumes of (Gross) potential resources calculated by Monte Carlo
simulations have provided the following values of these three
untested leads within the permit:
PPL405 Recoverable Oil (MMbbls) Recoverable Gas (Bcf)
Lead C
--------------- ----------------------------- --------------------------
Reservoir P90 P50 P10 P90 P50 P10
--------------- -------- --------- -------- ------- ------- --------
Toro & Iagifu 17.1 108.9 777.4 57.0 331.5 2189.3
--------------- -------- --------- -------- ------- ------- --------
PPL405 Recoverable Oil (MMbbls) Recoverable Gas (Bcf)
Warra Deep
Lead
--------------- ----------------------------- --------------------------
Reservoir P90 P50 P10 P90 P50 P10
--------------- ------- -------- ---------- ------- -------- -------
Toro & Iagifu 9.1 54.1 331.5 27.5 140.6 747.4
--------------- ------- -------- ---------- ------- -------- -------
PPL405 Recoverable Oil (MMbbls) Recoverable Gas (Bcf)
Lead D
--------------- ----------------------------- --------------------------
Reservoir P90 P50 P10 P90 P50 P10
--------------- ------- -------- ---------- ------- ------- --------
Toro & Iagifu 5.5 44.8 383.1 21.7 160.3 1237.2
--------------- ------- -------- ---------- ------- ------- --------
Additional subsurface activities are presently being planned to
further reduce uncertainties and develop the identified leads into
drillable prospects. This includes selective reprocessing of
existing 2D seismic data, new 2D seismic acquisition, detailed
reviews of structural modelling and full reservoir engineering
reviews for each lead.
3D-GEO was engaged to conduct a review of the offshore permits,
including interpretation of the 2D data, regional reservoir and
source rock studies, source generation timing and hydrocarbon
migration studies utilizing proprietary Genesis and Trinity
software packages to model the probability of hydrocarbon charge
within trap timing, and the development of a leads inventory.
Lead mapping of the offshore permits has identified a number of
potentially large structures, including Lead H in PPL375, where a
phase reversal (or soft kick) was observed in the 2D seismic data
in the interpreted Cretaceous reservoir horizon. This observation
is often regarded as a direct hydrocarbon indicator, or DHI, which
may be indicative of a gas cap. Lead H is a fault block closure
with up to 135 km(2) of closure.
A number of leads have been identified across the two permits,
many with closure at both Cretaceous and Miocene reservoir
horizons. The seismic grid is presently too sparse across the
offshore permits to have sufficient confidence in the structural
mapping to elevate any of the leads to prospect status at this
time. However, several large structures have been mapped with
recoverable gas volumes within the permits estimated in the multi
Tcf range (a mean of over 10Tcf for the five largest leads).
Un-risked, probabilistic volume calculations of the potential
resources have provided the following (Gross) recoverable gas
values of these five highest ranked untested leads within the
permit:
LEAD P90 P50 Mean P10
------------------------- ------ ------ ------- ------
(Recoverable Gas: Bcf)
------------------------- -------------------------------
Lead H Structure in PPL
375 Totals 375 1,490 1,825 3,690
------------------------- ------ ------ ------- ------
Lead A Structure Totals 570 1,920 2,215 4,235
------------------------- ------ ------ ------- ------
Lead B Structure Totals 1,050 3,750 4,425 8,640
------------------------- ------ ------ ------- ------
Lead G Structure Totals 520 1,680 1,970 3,785
------------------------- ------ ------ ------- ------
Lead C Structure Totals 105 370 440 850
------------------------- ------ ------ ------- ------
Total 10,875
------------------------- ------ ------ ------- ------
De-risking of these leads will require acquisition of new
seismic data and further interpretation and mapping. The
development of the leads inventory was required so that the 2D
seismic survey planned for 2013 can be optimally designed.
During the year, the Company advanced $6.2 million to UMC
Energy. The funds were used to meet costs associated with UMC
Energy's Papua New Guinea petroleum assets, to renew its Madagascan
uranium exploration permits and for general working capital. As the
time-frame for recovery of the loan funds is not certain, the full
amount of funds advanced to UMC Energy has been impaired. In
addition, the Group recognised a loss of $2.8 million being its
equity accounted share of the loss incurred by UMC Energy over the
2012 financial year.
Over the year, the Group also examined a number of other mineral
investment opportunities, but these did not lead to any positive
outcome.
Legal fees of $0.5 million and travel expenses of $0.6 million
were incurred, principally in relation to investigating and
pursuing investment opportunities and investigating the flotation
of the Fox Creek Coal Project onto the London Stock Exchange.
Interest income of $0.1 million and dividend income of $0.5
million was generated.
A foreign exchange gain of $0.1 million was recognised as a
result of the strengthening of, particularly, the Australian dollar
and British pound vis-a-vis the United States dollar.
During the 2012 financial year the Group:
-- Purchased $13.9 million of equity instruments.
-- Advanced secured loans to other entities of $1.9 million.
-- Generated proceeds of $10.0 million, and recognised a profit
of $1.8 million, from the sale of equity instruments.
-- Recognised an increment from the change in fair value of its
holding of available for sale financial assets of $1.8 million.
-- Purchased 100,000 of its own shares into Treasury at a cost of $0.1 million.
-- Recovered $3.1 million of consultancy fees incurred in the 2011 financial year.
-- Recognised an impairment adjustment of $0.2 million on intangible assets.
-- Recognised an impairment adjustment of $0.4 million on available-for-sale financial assets.
Other than the matters referred to above, in the opinion of the
Directors, there were no significant changes in the state of
affairs of the Group that occurred during the financial year under
review that are not otherwise disclosed in this report or the
consolidated financial statements.
TRADING RESULTS
The loss after income tax of the Group for the year ended 31
December 2012 attributable to equity holders of the Company was
$7,126,426 (2011 : profit of $5,796,888).
SUBSEQUENT EVENTS
Between 1 January 2013 and the date of this report the following
material transactions have occurred. The Group has:
-- Purchased $0.6 million of equity instruments.
-- Generated proceeds of $1.4 million, and recognised a profit
of $0.2 million, from the sale of equity instruments.
-- Purchased 183,000 of its own shares into Treasury at a cost of $0.2 million.
Other than the matters discussed above, there has not arisen in
the interval between the end of the financial year and the date of
this report any item, transaction or event of a material and
unusual nature likely, in the opinion of the Directors of the
Company, to affect significantly the operations of the Group, the
results of those operations or the state of affairs of the Group,
in subsequent financial years.
LIKELY DEVELOPMENTS
The Group expects to devote attention to continuing to enhance
the value of its Fox Creek Coal project and PNG Petroleum
project.
A number of mineral operations investment opportunities are
being investigated.
Further information about likely developments in the operations
of the Group and the expected results of those operations in future
financial years has not been included in this report because
disclosure of the information would be likely to result in
unreasonable prejudice to the Group.
C. Kyriakou
Director
NATASA MINING LTD
INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2012
Consolidated
2012 2011
$ $
------------------------------------------------ -------------- ------------
Total revenue from services - -
Gain on sale of equity and debt instruments 1,770,081 6,002,390
Gain on dilution of subsidiary - 5,856,325
Financial income 608,193 878,412
Personnel expenses (1,329,679) (1,348,870)
Audit fees (65,711) (70,493)
Audit fees to subsidiary and previous auditors - (56,197)
Consultancy fees recovered, net of expenditure 2,917,212 (3,598,653)
Depreciation and amortisation (5,605) (9,458)
Finance expenses (5,257) -
Foreign exchange gains 104,432 107,381
Impairment losses on intangibles (185,000) -
Impairment losses on investments (358,185) (200,000)
Impairment losses on receivables (6,232,728) -
Legal fees (463,126) (498,718)
Morondava licence fees - (183,237)
Travel expenses (487,332) (463,990)
Other expenses (570,384) (765,992)
-------------- ------------
Result from operating activities (4,303,089) 5,648,900
Share of net result of associates (2,823,337) -
-------------- ------------
(Loss) / profit before tax (7,126,426) 5,648,900
Income tax expense - -
(Loss) / profit for the year (7,126,426) 5,648,900
-------------- ------------
Attributable to :
Equity holders of the Company (7,126,426) 5,796,888
Minority interest - (147,988)
-------------- ------------
(Loss) / profit for the year (7,126,426) 5,648,900
-------------- ------------
Basic (loss) / earnings per share (cents) (24.4) 19.8
Diluted (loss) / earnings per share (cents) (24.4) 19.8
NATASA MINING LTD
STATEMENTS OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2012
Consolidated
2012 2011
$ $
----------------------------------------------- ---- -------------- ----------------
(Loss) / profit for the year (7,126,426) 5,648,900
Other comprehensive income:
Net change in fair value of available for
sale financial assets 1,713,587 (2,904,035)
Net change in fair value of available for
sale financial assets reclassified to profit
or loss 51,096 (2,547,582)
Change in fair value arising on dilution
of subsidiary - (94,694)
Foreign currency movement - equity accounted 930,721 -
investees
Foreign exchange movement 118,443 73,543
Other comprehensive income for the year 2,813,847 (5,472,768)
Total comprehensive (loss) / income for the
year (4,312,579) 176,132
-------------- ----------------
Attributable to :
Equity holders of the Company (4,312,579) 418,814
Minority interest - (242,682)
Total comprehensive (loss) / income for the
year (4,312,579) 176,132
-------------- ----------------
NATASA MINING LTD
STATEMENTS OF FINANCIAL POSITION
AS AT 31 DECEMBER 2012
Consolidated
2012 2011
$ $
--------------------------------------------- ------------- -------------
ASSETS
Current Assets
Cash and cash equivalents - 11,195,215
Trade and other receivables 2,031,637 5,741
Total Current Assets 2,031,637 11,200,956
------------- -------------
Non-Current Assets
Investments in equity accounted investees 7,210,284 8,912,512
Exploration and evaluation expenditure
- intangible 5,822,066 5,036,961
Other financial assets 28,729,602 21,757,306
Plant and equipment 7,122 5,361
Total Non-Current Assets 41,769,074 35,712,140
------------- -------------
Total Assets 43,800,711 46,913,096
------------- -------------
LIABILITIES
Current Liabilities
Trade and other payables 1,674,200 334,418
Total Current Liabilities 1,674,200 334,418
------------- -------------
Total Liabilities 1,674,200 334,418
------------- -------------
NET ASSETS 42,126,511 46,578,678
------------- -------------
EQUITY
Share capital 31,215,939 31,355,527
Reserves 3,757,907 944,060
Retained earnings 7,152,665 14,279,091
------------- -------------
Total equity attributable to equity holders
of the Company 42,126,511 46,578,678
Minority interest - -
------------- -------------
TOTAL EQUITY 42,126,511 46,578,678
------------- -------------
NATASA MINING LTD
STATEMENTS OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2012
Consolidated Attributable to equity holders of the Company
2012 Share Foreign
Fair based Currency
Share value payments Translation Retained Minority Total
capital reserve reserve reserve earnings Total Interest equity
$ $ $ $ $ $ $ $
---------------------- --- --------------- ------------ ----------- ------------ -------------- -------------- ---------- ---------------
Balance at 1 January
2012 31,355,527 850,986 57,000 36,074 14,279,091 46,578,678 - 46,578,678
Total comprehensive
income for the period
Loss - - - - (7,126,426) (7,126,426) - (7,126,426)
Total other comprehensive
income - 1,764,683 - 1,049,164 - 2,813,847 - 2,813,847
--------------- ------------ ----------- ------------ -------------- -------------- ---------- ---------------
Total comprehensive
loss for the period - 1,764,683 - 1,049,164 (7,126,426) (4,312,579) - (4,312,579)
--------------- ------------ ----------- ------------ -------------- -------------- ---------- ---------------
Transactions with
owners,
recorded directly in
equity
Contributions by
owners
Shares purchased into
Treasury (139,588) - - - - (139,588) - (139,588)
--------------- ------------ ----------- ------------ -------------- -------------- ---------- ---------------
Total contributions
by owners (139,588) - - - - (139,588) - (139,588)
--------------- ------------ ----------- ------------ -------------- -------------- ---------- ---------------
Total transactions with
owners (139,588) - - - - (139,588) - (139,588)
--------------- ------------ ----------- ------------ -------------- -------------- ---------- ---------------
Balance at 31 December
2012 31,215,939 2,615,669 57,000 1,085,238 7,152,665 42,126,511 - 42,126,511
--------------- ------------ ----------- ------------ -------------- -------------- ---------- ---------------
NATASA MINING LTD
STATEMENTS OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2012
Consolidated Attributable to equity holders of the Company
2011 Share Foreign
Fair based Currency
Share value payments Translation Retained Minority Total
capital reserve reserve reserve earnings Total Interest equity
$ $ $ $ $ $ $ $
--------------------- --- --------------- ---------------- ----------- ------------ ------------- -------------- ------------ ---------------
Balance at 1 January
2011 41,723,622 6,302,603 57,000 (37,469) 8,482,203 56,527,959 242,682 56,770,641
Total comprehensive
income for the
period
Profit - - - - 5,796,888 5,796,888 (147,988) 5,648,900
Total other comprehensive
income - (5,451,617) - 73,543 - (5,378,074) (94,694) (5,472,768)
--------------- ---------------- ----------- ------------ ------------- -------------- ------------ ---------------
Total comprehensive
income for the period - (5,451,617) - 73,543 5,796,888 418,814 (242,682) 176,132
--------------- ---------------- ----------- ------------ ------------- -------------- ------------ ---------------
Transactions with
owners,
recorded directly in
equity
Contributions by
owners
Capital return - in
cash (10,234,683) - - - - (10,234,683) - (10,234,683)
Shares purchased into
Treasury (133,412) - - - - (133,412) - (133,412)
--------------- ---------------- ----------- ------------ ------------- -------------- ------------ ---------------
Total contributions
by owners (10,368,095) - - - - (10,368,095) - (10,368,095)
--------------- ---------------- ----------- ------------ ------------- -------------- ------------ ---------------
Total transactions with
owners (10,368,095) - - - - (10,368,095) - (10,368,095)
--------------- ---------------- ----------- ------------ ------------- -------------- ------------ ---------------
Balance at 31 December
2011 31,355,527 850,986 57,000 36,074 14,279,091 46,578,678 - 46,578,678
--------------- ---------------- ----------- ------------ ------------- -------------- ------------ ---------------
NATASA MINING LTD
STATEMENTS OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2012
Consolidated
2012 2011
$ $
--------------------------------------------------- ----- --------------- -----------------
Cash flows from operating activities
Cash payments in the course of operations,
net of recoveries (186,241) (6,865,905)
--------------- -----------------
Cash used in operations (186,241) (6,865,905)
Interest and dividends received 608,193 878,412
Interest paid (5,257) -
--------------- -----------------
Net cash from / (used in) operating activities 416,695 (5,987,493)
--------------- -----------------
Cash flows from investing activities
Purchase of:
- equity interest in associate (190,387) -
- equity investments (13,888,428) (10,206,118)
Proceeds from sale of:
- equity investments 9,999,619 13,005,755
- debt instruments - 307,358
Payments for purchases of plant and equipment (7,366) -
Payments for purchases of intangibles (853,034) (5,000,000)
Loans and advances:
- to associates (6,232,728) -
- to other entities (1,857,730) (6,827,839)
- repaid by other entities - 6,827,839
Net cash used in investing activities (13,030,054) (1,893,005)
--------------- -----------------
Cash flows from financing activities
Capital return - (10,234,683)
Shares purchased into Treasury (139,588) (133,411)
Net cash from financing activities (139,588) (10,368,094)
--------------- -----------------
Net decrease in cash and cash equivalents (12,752,947) (18,248,592)
Cash and cash equivalents at 1 January 11,195,215 29,315,691
Effect of exchange rate fluctuations on cash
held - 128,116
--------------- -----------------
(1,557,732) 11,195,215
Bank overdrafts used for cash management purposes 1,557,732 -
--------------- -----------------
Cash and cash equivalents at 31 December - 11,195,215
--------------- -----------------
NATASA MINING LTD
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2012
1. SIGNIFICANT ACCOUNTING POLICIES
Natasa Mining Ltd (the "Company") is a company incorporated in
the Cayman Islands. The consolidated financial report of the
Company as at and for the year ended 31 December 2012 comprises the
Company and its subsidiaries (together referred to as the "Group")
and the Group's interest in associates.
Consolidated
2012 2011
$ $
------------------------------------------------------- -------------- -------------
2. (LOSS) / EARNINGS PER SHARE
Basic (loss) / earnings per share (24.4c) 19.8c
Diluted (loss) / earnings per share (24.4c) 19.8c
(Loss) / profit attributable to ordinary shareholders
as used in the calculation of basic earnings per
share (7,126,426) 5,796,888
(Loss) / profit attributable to ordinary shareholders
as used in the calculation of diluted earnings
per share (7,126,426) 5,796,888
Weighted average number of ordinary shares used
in the calculation of basic earnings per share 29,241,951 29,241,951
Weighted average number of ordinary shares used
in the calculation of diluted earnings per share 29,241,951 29,241,951
3. INVESTMENTS IN EQUITY ACCOUNTED INVESTEES
The Group has the following investments in equity accounted investees
Reporting Ownership
Principal Activities Country Date 2012 2011
Petroleum exploration and
evaluation in Papua New Guinea
and uranium exploration and
UMC Energy plc evaluation in Madagascar UK 31 Dec 42.6 42.4
Share of Net assets Share of
associates as reported associates
net profit by associates net assets
/ (loss) equity
recognised accounted
(100%)
Profit Total assets Total liabilities
/ (loss)
Revenues (100%) (100%) (100%)
(100%)
2012
UMC
Energy
plc - (6,627,553) (2,823,337) 27,072,079 (10,146,531) 16,925,548 7,210,284
- (6,627,553) (2,823,337) 27,072,079 (10,146,531) 16,925,548 7,210,284
-------------------------- -------------- ---------------- ---------------- ----------------------- -------------- -----------
2011
UMC
Energy
plc - - - 23,766,447 2,746,370 21,020,077 8,912,512
- - - 23,766,447 2,746,370 21,020,077 8,912,512
-------------------------- -------------- ------------ -------------------- ----------------------- -------------- -----------
Consolidated
2012 2011
$ $
--------------------------------------------------------------------------------------------------- ---- -------------- ---------------
4. EXPLORATION AND EVALUATION EXPENDITURE - INTANGIBLE
Opening balance - 1 January 5,036,961 2,978,035
Additions at fair value 853,034 5,000,000
Disposals - (2,978,035)
Impairment (185,000) -
Foreign exchange variation 117,071 36,961
Closing balance - 31 December 5,822,066 5,036,961
-------------- ---------------
Critical accounting judgements in applying the consolidated entity's accounting
policies
The Fox Creek coal project has yet to reach a stage of development where
a determination of the technical feasibility or commercial viability can
be assessed. In these circumstances, whether there is any indication that
the asset has been impaired is a matter of judgement, as is the determination
of the quantum of any required impairment adjustment. The Directors have
used their experience to conclude that no impairment adjustment is required
in the current year.
The Company has committed to invest $500,000 in a series of oil and gas
exploration projects in California. In the year $379,816 has been invested
including $185,000 in one project which was not successful. The investment
in the unsuccessful project has been fully impaired in the current year.
Consolidated
2012 2011
$ $
--------------------------------------------- --------------- ---------------
5. OTHER FINANCIAL ASSETS
Non-current
Equity securities available-for-sale:
- listed 28,729,602 21,757,306
--------------- ---------------
Total other financial assets 28,729,602 21,757,306
--------------- ---------------
The available-for-sale listed equity securities comprise securities
in companies operating in the mining and natural resources sector as
well as holdings in major companies operating in other sectors. Although
the Company's investment strategy is to focus on pre-production and/or
producing resource opportunities it also holds securities in major
companies operating in other sectors in order to maximise the overall
return to shareholders.
6. SUBSEQUENT EVENTS
Between 1 January 2013 and the date of this report the following
material transactions have occurred. The Group has:
-- Purchased $0.6 million of equity instruments.
-- Generated proceeds of $1.4 million, and recognised a profit
of $0.2 million, from the sale of equity instruments.
-- Purchased 183,000 of its own shares into Treasury at a cost of $0.2 million
The financial effects of the above transactions have not been
brought to account in the financial statements for the year ended
31 December 2012.
7. PUBLICATION OF NON STATUTORY ACCOUNTS
The financial information set out in this announcement does not
constitute statutory accounts.
The financial information for the year ended 31 December 2012
has been extracted from the Group's statutory financial statements
to that date upon which the auditors' opinion is unqualified.
8. ANNUAL REPORT AND ANNUAL GENERAL MEETING
The Annual Report for the year ended 31 December 2012 will be
available from the Company's website www.natasamining.com
today.
The annual general meeting of the Company has been convened for
10.30 a.m. on 26 June 2013 at First Floor, 10 Dover Street London
W1S 4LQ
**ENDS**
Enquiries:
Natasa Mining Ltd
Chrisilios Kyriakou, Executive Chairman
Telephone: +44 (0) 20 7290 3102
www.natasamining.com
Angela Hallett / James Spinney
Strand Hanson Limited
Telephone: +44 (0) 20 7409 3494
This information is provided by RNS
The company news service from the London Stock Exchange
END
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