Half-Year Report

RNS Number : 0002O

Centamin Egypt Limited

27 February 2009

 



CENTAMIN EGYPT LIMITED

HALF-YEAR REPORT 

FOR THE HALF-YEAR ENDED 

31 DECEMBER 2008

CONTENTS

DIIRECTORS' REPORT                                                                                                                                             1                              

AUDITOR'S INDEPENDENCE DECLARATION                                                                                                        3           

INDEPENDENT REVIEW REPORT TO THE MEMBERS OF CENTAMIN EGYPT LIMITED                                    4

DIRECTORS' DECLARATION                                                                                                                                    6

CONDENSED CONSOLIDATED INCOME STATEMENT                                                                                          7

CONDENSED CONSOLIDATED BALANCE SHEET                                                                                                 8

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY                                                              9                   

CONDENSED CONSOLIDATED CASH FLOW STATEMENT                                                                                 10

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS                                                      11     

  DIRECTORS' REPORT

The Directors of Centamin Egypt Limited (the Company) herewith submit the financial report for the half-year ended 31 December 2008. In order to comply with the provisions of the Corporations Act 2001, the Directors' Report is as follows:

DIRECTORS

The names of the Directors and officers of the company during or since the end of the half-year are:

Mr Sami El-Raghy, Executive Chairman

Mr Josef El-Raghy, Managing Director/CEO

Mr Trevor Schultz, Executive Director of Operations

Mr Colin Cowden, Non Executive Director

Mr G Brian Speechly, Non Executive Director

Dr Thomas Elder, Non Executive Director

Mr H Stuart Bottomley, Non Executive Director

Professor G Robert T Bowker, Non Executive Director

COMPANY SECRETARY

Mrs Heidi Brown

PRINCIPAL ACTIVITIES

The principal activity of the consolidated entity during the course of the financial year was the exploration for precious and base metals and the ongoing development and construction work at the Sukari Gold Project in Egypt.

REVIEW OF OPERATIONS

The Company recorded a consolidated operating loss for the period of US$24,434,381 compared with a consolidated operating profit of US$5,662,037 for the corresponding period last year. The consolidated operating loss was primarily attributable to a foreign exchange loss of US$25,204,038 (2007: gain US$5,927,574). As the Company holds the majority of its funds in Canadian dollars, the foreign exchange loss is a consequence of the significant depreciation of the Canadian Dollar against the United States Dollar that followed the downturn of the financial markets during the period.

During the half-year the principal focus of the Company has been:

• Continuing development and construction activities at the Sukari Gold Project in Egypt;

• Securing blasting permits ahead of mining operations scheduled for early 2009;

• Upgrading the Sukari Mineral Resource to 9.39 Moz Measured and Indicated, plus 3.5 Moz Inferred at a 0.5g/t cut off grade; and

• Performed detailed planning to ensure the commencement of underground mine development during 2009. 

During October 2008, there were unforeseen, unprecedented and large movements in the USD versus almost all other currencies. This unprecedented and rapid shift in foreign exchange markets impacted the Company through its substantial Canadian dollar holdings. This loss is reflected through the foreign exchange loss positions mentioned above, the majority of which was an unrealised loss. 

The currency positions were evaluated throughout December, and in January the Board resolved that if the equity market was supportive, then a small capital raising was the preferred funding option.  As such, on 20 January 2009, the company entered into an agreement with a syndicate of underwriters led by Thomas Weisel Partners Canada Inc under which the underwriters agreed to buy 92,308,000 ordinary shares from Centamin Egypt Limited on a bought-deal basis and sell them to the public at a price of C$0.65 per Ordinary Share. The Company also granted to the underwriters an over-allotment option to purchase up to an additional 13,846,200 Ordinary Shares at the same price, exercisable by the underwriters in whole or in part for a period of 30 days on or following the closing of the offering. Upon closure of the offer on 10 February 2009, the gross proceeds raised were C$69,000,230. 

Centamin Egypt Limited intends to use the net proceeds of the offering for the continued development of the Sukari Gold Project, underground development, exploration and working capital purposes. The Company is currently debt free, unhedged and able to aggressively pursue further exploration and development activities.

Shareholders are referred to the Company's website (www.centamin.com) for further details. 

AUDITOR'S INDEPENDENCE DECLARATION

The auditor's independence declaration is included on page 3 of the half-year financial report.

Signed in accordance with a resolution of the directors made pursuant to s306(3) of the Corporations Act 2001.

On behalf of the Directors

Sami El-Raghy

Chairman

Perth, 27 February 2009

The Board of Directors Centamin Egypt Limited     57 Kishorn Road Mt Pleasant WA 6153

Deloitte Touche Tohmatsu
A.B.N. 74 490 121 060

240 St. Georges Terrace
Perth WA 6000
GPO Box A46
Perth WA 6837 Australia

DX 206
Tel:  [phone]
Fax:  [phone]
www.deloitte.com.au

27 February 2009

Dear Board Members

Centamin Egypt Limited

In accordance with section 307C of the Corporations Act 2001, I am pleased to provide the following declaration of independence to the directors of Centamin Egypt Limited.

As lead audit partner for the review of the financial statements of Centamin Egypt Limited for the half-year ended 31 December 2008, I declare that to the best of my knowledge and belief, there have been no contraventions of:

 

(i)      the auditor independence requirements of the Corporations Act 2001 in relation to the review; and

(ii)    any applicable code of professional conduct in relation to the  review.

Yours sincerely

DELOITTE TOUCHE TOHMATSU

Ross Jerrard

Partner 

Chartered Accountants

Deloitte

Deloitte Touche Tohmatsu
ABN 74 490 121 060

Woodside Plaza
Level 14
240 St Georges Terrace
Perth WA 6000
GPO Box A46
Perth WA 6837 Australia

DX 206
Tel:  [phone]
Fax:  [phone]
www.deloitte.com.au

Independent Auditor's Review Report

to the Members of Centamin Egypt Limited

We have reviewed the accompanying half-year financial report of Centamin Egypt Limited, which comprises the balance sheet as at 31 December 2008, and the income statement, cash flow statement, statement of changes in equity for the half-year ended on that date, selected explanatory notes and the directors' declaration of the consolidated entity comprising the company and the entities it controlled at the end of the half-year or from time to time during the half-year as set out on pages 6 to 16. 

Directors' Responsibility for the Half-Year Financial Report

The directors of the company 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 establishing and maintaining internal control 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

Our responsibility is to express a conclusion on the half-year financial report based on our review. We conducted our review in accordance with Auditing Standard on Review Engagements ASRE 2410 Review of an Interim Financial Report Performed by the Independent Auditor of the Entity, in order to state whether, on the basis of the procedures described, we have become aware of any matter that makes us believe that the half-year financial report is not in accordance with the Corporations Act 2001 including: giving a true and fair view of the consolidated entity's financial position as at 31 December 2008 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 Centamin Egypt Limited, ASRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual financial report.

A review of a half-year financial report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures.  A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

  Auditor's Independence Declaration

In conducting our review, we have complied with the independence requirements of the Corporations Act 2001. 

Conclusion

Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the half-year financial report of Centamin Egypt Limited is not in accordance with the Corporations Act 2001, including:

(a)    giving a true and fair view of the consolidated entity’s financial position as at 31 December 2008 and of its performance for the half-year ended on that date; and

 

(b)    complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001.

.

DELOITTE TOUCHE TOHMATSU

Ross Jerrard

Partner

Chartered Accountants

Perth, 27 February 2009

DIRECTORS' DECLARATION

The directors declare that:

a)       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; and

 

b)       In the directors’ opinion, the attached financial statements and notes thereto are in accordance with the Corporations Act 2001, including compliance with accounting standards and giving a true and fair view of the financial position and performance of the consolidated entity.

Signed in accordance with a resolution of the directors made pursuant to s303(5) of the Corporations Act 2001.

On behalf of the Directors

Sami El-Raghy

Chairman 

Perth, 27 February 2009

CONDENSED CONSOLIDATED INCOME STATEMENT

FOR THE HALF YEAR ENDED 31 DECEMBER 2008
	Half Year Ended
	31 December
	2008	2007
	US$	US$
Revenue - Note 4	2,106,408	3,290,245
Other income - Note 4	10,283	201,780
Corporate administration expenses	(914,330)	(2,071,919)
Foreign exchange gain / (loss)	(25,204,038)	5,927,574
Share based payments	(359,881)	(1,381,402)
Other expenses	(72,823)	(304,241)
Profit/(loss) before income tax	(24,434,381)	5,662,037
Tax (expense) / income	-	-
Net profit/(loss) for the period	(24,434,381)	5,662,037
Earnings per share - Note 9
- Basic (cents per share)	(2.758)	0.745
- Diluted (cents per share)	(2.758)	0.733

The above Condensed Consolidated Income Statement should be read in conjunction with the accompanying notes.

  CONDENSED CONSOLIDATED BALANCE SHEET

AS AT 31 DECEMBER 2008
	31 December  2008	30 June  2008
	US$	US$
CURRENT ASSETS
Cash and cash equivalents	97,504,763	182,328,604
Trade and other receivables	16,330	24,753
Inventories	2,998,226	2,584,430
Prepayments	933,562	591,518
Total current assets	101,452,881	185,529,305
NON-CURRENT ASSETS
Plant and equipment	42,953,583	37,801,586
Exploration, evaluation and development expenditure - Note 5	190,944,528	137,166,299
Total non-current assets	233,898,111	174,967,885
Total assets	335,350,992	360,497,190
CURRENT LIABILITIES
Trade and other payables	3,764,365	5,687,063
Current tax liabilities	443,869	443,869
Provisions	558,626	737,192
Total current liabilities	4,766,860	6,868,124
NON-CURRENT LIABILITIES
Trade and other payables	150,000	150,000
Provisions	740,554	522,236
Total non-current liabilities	890,554	672,236
Total liabilities	5,657,414	7,540,360
NET ASSETS	329,693,578	352,956,830
EQUITY
Issued Capital - Note 7	354,093,085	352,947,841
Reserves	7,594,120	7,568,235
Accumulated losses	(31,993,627)	(7,559,246)
TOTAL EQUITY	329,693,578	352,956,830

The above Condensed Consolidated Balance Sheet should be read in conjunction with the accompanying notes.

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 

FOR THE HALF YEAR ENDED 31 DECEMBER 2008
	Issued  Capital US$	Reserves US$	Options Reserve US$	Accumulated Losses US$	Total US$
At 1 July 2007	217,915,069	2,294,794	3,752,946	(11,762,365)	212,200,444
Profit for the period	-	-	-	5,662,037	5,662,037
Total recognised income and expense	-	-	-	5,662,037	5,662,037
Share options exercised	7,031,179	-	-	-	7,031,179
Issue of shares under employee share option plan	-	-	1,381,402	-	1,381,402
Issue of shares	133,140,029	-	-	-	133,140,029
Share issue costs	(7,141,644)	-	-	-	(7,141,644)
Transfer to issued capital	1,826,030	-	(1,826,030)	-	-
At 31 December 2007	352,770,663	2,294,794	3,308,318	(6,100,328)	352,273,447
At 1 July 2008	352,947,841	2,294,794	5,273,441	(7,559,246)	352,956,830
Loss for the period	-	-	-	(24,434,381)	(24,434,381)
Total recognised income and expense	-	-	-	(24,434,381)	(24,434,381)
Share options exercised	811,248	-	-	-	811,248
Issue of shares under employee share option plan	-	-	359,881	-	359,881
Transfer to issued capital	333,996	-	(333,996)	-	-
At 31 December 2008	354,093,085	2,294,794	5,299,326	(31,993,627)	329,693,578

The above Condensed Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes.

  CONDENSED CONSOLIDATED CASH FLOW STATEMENT

FOR THE HALF YEAR ENDED 31 DECEMBER 2008
	Half Year Ended
	31 December
	2008	2007
	US$	US$
CASH FLOWS FROM OPERATING ACTIVITIES
Payments to suppliers and employees	(1,422,831)	(1,881,205)
Payments for exploration	(5,141,975)	(5,115,174)
Other income	10,283	201,780
Net cash used in operating activities	(6,554,523)	(6,794,599)
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for development	(49,740,556)	(25,822,771)
Payments for plant & equipment	(7,742,704)	(19,656,802)
Interest received	2,106,408	3,290,245
Net cash used in investing activities	(55,376,852)	(42,189,328)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from the issue of equity & conversion of options	811,248	133,029,564
Project finance due diligence	-	(926,435)
Net cash generated by financing activities	811,248	132,103,129
Net (decrease)/increase in cash and cash equivalents	(61,120,127)	83,119,202
Cash and cash equivalents at the beginning of the financial period	182,328,604	136,501,015
Effects of exchange rate changes on the balance of cash held in foreign currencies	(23,703,714)	6,497,174
Cash and cash equivalents at the end of the financial period	97,504,763	226,117,391

The above Condensed Consolidated Cash Flow Statement should be read in conjunction with the accompanying notes.

  NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1:    STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

Statement of Compliance

Centamin Egypt Limited (the 'Company') and its subsidiaries (collectively 'the Group') are engaged in the exploration and development of precious and base metals located in the eastern desert region of Egypt. The Company was incorporated under the Corporations Law of South Australia on 24 March 1970.

The half year financial report is a general purpose financial report prepared in accordance with the Corporations Act 2001 and AASB 134 Interim Financial Reporting. Compliance with AASB 134 ensures compliance with International Financial Reporting Standard IAS 34 Interim Financial Reporting. The half year report does not include notes of the type normally included in the annual financial report and shall be read in conjunction with the most recent annual financial report.

Basis of Preparation

The condensed consolidated financial statements have been prepared on the basis of historical cost, except for the revaluation of certain non-current assets and financial instruments. Cost is based on the fair values of the considerations given in exchange for assets. All amounts are presented in United States dollars, unless otherwise noted. 

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 2008 annual financial report for the financial year ended 30 June 2008.

NOTE 2:    SEGMENT REPORTING

Primary reporting - Business Segments

The economic entity is engaged in the business of exploration and development for precious and base metals only, which is characterised as one business segment only.

Secondary reporting - Geographical Segments

The principal activity of the economic entity during the year was the exploration for precious and base metals in Egypt and funding is sourced from Canada.

NOTE 3:    EVENTS SUBSEQUENT TO BALANCE DATE

On 20 January 2009, the company entered into an agreement with a syndicate of underwriters led by Thomas Weisel Partners Canada Inc under which the underwriters agreed to buy 92,308,000 ordinary shares (the 'Ordinary Shares') from Centamin Egypt Limited on a bought-deal basis and sell them to the public at a price of C$0.65 per Ordinary Share. The Company also granted to the underwriters an over-allotment option to purchase up to an additional 13,846,200 Ordinary Shares at the same price, exercisable by the underwriters in whole or in part for a period of 30 days on or following the closing of the offering. Following closure of the offer period on 10 February 2009, the gross proceeds raised from the offer was C$69,000,230.

Other than as set out above there has not risen in the interval between the end of the period 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 company, the results of those operations, or the state of affairs of the Company in subsequent financial years.

NOTE 4:    REVENUE	Half Year Ended
	31 December
	2008	2007
	US$	US$
(a) Revenue
Interest revenue	2,106,408	3,290,245
(b) Other income
Sale of plant and equipment	-	199,940
VAT refund	10,283	1,840
	10,283	201,780

NOTE 5:    EXPLORATION, EVALUATION AND DEVELOPMENT EXPENDITURE	Half Year Ended
	31 December	30 June
	2008	2008
	US$	US$
Exploration and evaluation phase expenditure - At Cost (a)
Balance at the beginning of the period	16,235,660	11,057,229
Expenditure for the period	5,275,483	5,178,431
Balance at the end of the period	21,511,143	16,235,660
Development expenditure - At Cost (b)
Balance at the beginning of the period	120,930,639	107,275,941
Expenditure for the period	48,502,746	13,654,698
Balance at the end of the period	169,433,385	120,930,639
Net book value of exploration, evaluation and development phase expenditure	190,944,528	137,166,299

(a)     Included within the cost amount of exploration evaluation and development assets is $5,311,744 being the excess of consideration over the net tangible assets acquired on the acquisition of Pharaoh Gold Mines NL in January 1999. This amount has been treated as part of the cost of exploration, evaluation and development. Management believe that the recovery of these amounts will satisfactorily be made through the exploitation of the project in due course.

(b)     Development of the Sukari Gold Project commenced in March 2007. Items of development phase expenditure relevant to the project are being separately accounted for as development phase expenditure.

NOTE 6:    CONTINGENT LIABILITIES

The Directors are not aware of any contingent liabilities as at the date of these interim consolidated financial statements.

NOTE 7:    ISSUED CAPITAL	Half Year Ended
	31 December	30 June
	2008	2008
	US$	US$
Fully paid ordinary shares
Balance at beginning of the period	352,947,841	352,770,663
Issue of shares under Employee option plan	811,248	1,639,486
Transfer from share options reserve	333,996	736,848
Issue of shares	-	(2,199,156)
Balance at end of the period	354,093,085	352,947,841

Changes to the then Corporations Law abolished the authorised capital and par value concept in relation to share capital from 01 July 1998. Therefore, the Company does not have a limited amount of authorised capital and issued shares do not have a par value.

Fully paid ordinary shares carry one vote per share and carry the right to dividends.

Fully Paid Ordinary Shares

		Half Year Ended 31 December 2008
		Number		US$
Balance at beginning of the period		877,419,163		352,947,841
Issue of shares under Employee option plan		2,100,000		811,248
Transfer from share options reserve		-		333,996
Balance at end of the period		879,519,163		354,093,085

Share options granted under the employee share option plan

In accordance with the provisions of the employee share option plans, as at 31 December 2008, executives and employees had options over 10,435,000 ordinary shares. The expiry dates of the granted options are detailed in Note 10. Share options granted under the employee share option plan carry no rights to dividends and no voting rights. Further details of the employee share option plan are contained in Note 10 to the financial statements.

Share warrants on issue

As part of the Canadian listing process undertaken during the previous financial year on the Toronto Stock Exchange (TSX) the Company was required to issue to its nominated share broker share warrants as part of the arrangement. Share warrants are identical in nature to share options however they are differentiated as such because the latter in Canada typically relates to options issued to employees under employee share plans. As at 31 December 2008 there were 9,607,260 broker warrants on issue over and equivalent number of ordinary shares (all of which are vested). Further details of the share warrants are contained in Note 11 to the financial statements.

NOTE 8:    RELATED PARTY TRANSACTIONS

The related party transactions for the six months ended 31 December 2008 are summarised below:

-          Salaries, superannuation contributions, consulting and Directors fees paid to Directors during the six months ended 31 December 2008 amounted to A$712,006 (31 December 2007: A$687,040).

 

-          Mr S El-Raghy and Mr J El-Raghy are Directors and shareholders of El-Raghy Kriewaldt Pty Ltd (“ELK”), which provides office premises to the Company in Australia. All dealings with ELK are in the ordinary course of business and on normal terms and conditions. Rent paid to ELK during the six months ended 31 December 2008 amounted to A$31,720 (31 December 2007: A$30,916).

 

-          Mr S El-Raghy provides office premises to the Company in Alexandria, Egypt. All dealings are in the ordinary course of business and on normal terms and conditions. Rent paid during the six months ended 31 December 2008 amounted to GBP 3,900 (31 December 2007: GBP 3,900).

 

-          Mr C Cowden, a non-executive director, is also a director and shareholder of Cowden Limited, which provides insurance broking services to the Company. All dealings with Cowden Limited are in the ordinary course of business and on normal terms and conditions.Cowden Limited was paid A$45,810 during the six months ended 31 December 2008 (31 December 2007: A$27,692). In addition, amounts of A$283,507 (31 December 2007: A$173,346) were paid to Cowden Limited to be passed on to underwriters for premiums during the six months ended 31 December 2008.

 

-          Mr Brian Speechly, a non-executive director, is also a director and shareholder of Speechly Mining Pty Ltd, a mining consultancy company. No payments were made to Speechly Mining Pty Ltd during the six months ended 31 December 2008 (December 31, 2007: A$91,881).

The amount of US$150,000 appearing in non-current liabilities of the interim consolidated balance sheet as at 31 December 2008 represents an unsecured loan payable 14 days after commencement of commercial production at the Sukari project to Egyptian Mineral Commodities, a company which Mr S El-Raghy has a financial interest in. This transaction was entered into by the Company on 27 September 2001.

NOTE 9:    EARNINGS PER SHARE

Basic earnings per share are calculated using the weighted average number of shares outstanding. Diluted earnings per share are calculated using the treasury stock method. In order to determine diluted earnings per share, the treasury stock method assumes that any proceeds from the exercise of dilutive stock options and warrants would be used to repurchase common shares at the average market price during the period, with the incremental number of shares being included in the denominator of the diluted earnings per share calculation. The diluted earnings per share calculation exclude any potential conversion of options and warrants that would increase earnings per share.

The weighted average number of ordinary shares used in the calculation of basic earnings per share is 885,882,882 (31 December 2007: 759,650,488). The weighted average number of ordinary shares used in the calculation of diluted earnings per share is 885,882,882 (31 December 2007: 772,852,988). The earnings used in the calculation of basic and diluted earnings per share are US$24,434,381 (31 December 2007: US$5,662,037).

NOTE 10: SHARE BASED PAYMENTS

The consolidated entity has an Employee Share Option Plan in place for executives and employees.

Options are issued to key management personnel under the Employee Option Plan 2006 (previously the Employee Option Plan 2002) as part of their remuneration. Options are offered to key management personnel at the discretion of the Directors, having regard, among other things, to the length of service with the consolidated entity, the past and potential contribution of the person to the consolidated entity and in some cases, performance. 

Each employee share option converts into one ordinary share of the Company on exercise. The options carry neither rights to dividends nor voting rights. Options vest over a period of 12 months, with 50% vesting and exercisable after six months and the other 50% vesting and exercisable after 12 months of issue. All options are issued with a term of three years. At the discretion of the Directors part or all of the options issued to an executive or employee may be subject to performance based hurdles. No performance based hurdles have been applied for issues granted to date.

In addition, Series 5 options were issued to three employees outside of the Employee Share Option Plan on 31 October 2005. Details of those options were:

-          2,500,000 of those options were subject to performance based hurdles. Due to the cessation of employment by the employee to whom the options were issued they lapsed in May 2007.

 

-          1,000,000 of those options vest and are exercisable over a period of two years, with 50% vesting and exercisable after 12 months and the other 50% vesting and exercisable after 24 months of issue. These options have a term of 5 years. To date, 630,000 options have been exercised.

 

-          750,000 of those options vest and are exercisable immediately. These have a term of 5 years. To date, 50,000 options have been exercised.

The following reconciles the outstanding share options granted under the Employee Share Option Plan, and other share based payment arrangements, at the beginning and end of the financial year:

	Half Year Ended 31 December 2008
	Number of options
Balance at beginning of the period (a)	11,785,000
Granted during the period (b)	2,250,000
Exercised during the period (c)	(2,100,000)
Forfeited, expired or lapsed during the period (d)	(1,500,000)
Balance at the end of the period (e)	10,435,000
Exercisable at the end of the period	6,435,000

  a) Balance at the beginning of the period

Options series	Number	Grant date	Expiry / Exercise Date	Exercise price A$	Fair value at grant date A$
Series 5	1,670,000	31 Oct 05	31 Oct 10	0.3500	0.1753
Series 6	1,500,000	08 Dec 05	08 Dec 08	0.4355	0.1495
Series 7	250,000	30 Aug 06	30 Aug 09	0.6566	0.2785
Series 9	1,950,000	31 Jan 07	31 Jan 10	0.7106	0.3518
Series 10	2,165,000	24 May 07	24 May 10	1.0500	0.4661
Series 11	500,000	25 Jun 07	25 Jun 10	1.1636	0.3210
Series 12	250,000	15 Oct 07	15 Oct 10	1.4034	0.4002
Series 13	3,500,000	16 Apr 08	16 Apr 11	1.7022	0.4015
	11,785,000

b) Granted during the period

Options series	Number	Grant date	Expiry / Exercise Date	Exercise price A$	Fair value at grant date A$
Series 14	250,000	25 Aug 08	25 Aug 11	1.1999	0.2763
Series 15	750,000	28 Oct 08	28 Oct 11	0.7033	0.1279
Series 16	250,000	28 Nov 08	28 Nov 11	0.6750	0.2764
Series 17	1,000,000	19 Dec 08	19 Dec 11	1.0000	0.2451
	2,250,000

c) Exercised during the period

Options series	Number exercised	Exercise Date	Share price at exercise date A$
Series 5	600,000	04 Aug 08	1.1700
Series 6	500,000 500,000	01 Oct 08 25 Nov 08	0.8100 0.7200
Series 7	250,000	06 Aug 08	0.9600
Series 9	250,000	06 Aug 08	0.9600
	2,100,000

d) Forfeited, expired or lapsed during the period

Options series	Number	Grant date	Expiry / Exercise Date	Exercise price A$	Fair value at grant date A$
Series 6	500,000	08 Dec 05	08 Dec 08	0.4355	0.1495
Series 9	500,000	31 Jan 07	31 Jan 10	0.7106	0.3518
Series 11	500,000	25 Jun 07	25 Jun 10	1.1636	0.3210
	1,500,000

  e) Balance at the end of the period

Options series	Number	Grant date	Expiry / Exercise Date	Exercise price A$	Fair value at grant date A$
Series 5	1,070,000	31 Oct 05	31 Oct 10	0.3500	0.1753
Series 9	1,200,000	31 Jan 07	31 Jan 10	0.7106	0.3518
Series 10	2,165,000	24 May 07	24 May 10	1.0500	0.4661
Series 12	250,000	15 Oct 07	15 Oct 10	1.4034	0.4002
Series 13	3,500,000	16 Apr 08	16 Apr 11	1.7022	0.4015
Series 14	250,000	25 Aug 08	25 Aug 11	1.1999	0.2763
Series 15	750,000	28 Oct 08	28 Oct 11	0.7033	0.1279
Series 16	250,000	28 Nov 08	28 Nov 11	0.6750	0.2764
Series 17	1,000,000	19 Dec 08	19 Dec 11	1.0000	0.2451
	10,435,000

NOTE 11: SHARE WARRANTS

a) Balance at the start of the period

The following share warrants were in existence during the current reporting period:-

Warrants series	Number	Grant date	Expiry Date	Exercise price C$	Fair value at grant date A$
Series 2	3,393,678	13 Apr 07	11 Apr 09	0.8600	0.2743
Series 3	613,582	20 Apr 07	20 Apr 09	0.8600	0.2868
Series 4	5,600,000	10 Jan 08	23 Nov 09	1.2000	0.3790
	9,607,260

b) Exercised during the period

There were no broker warrants exercised during the quarter.

c) Issued during the period

There were no broker warrants issued during the quarter.

d) Balance at the end of the period

Options series	Number	Grant date	Expiry / Exercise Date	Exercise price A$	Fair value at grant date A$
Series 2	3,393,678	13 Apr 07	11 Apr 09	0.8600	0.2743
Series 3	613,582	20 Apr 07	20 Apr 09	0.8600	0.2868
Series 4	5,600,000	10 Jan 08	23 Nov 09	1.2000	0.3790
	9,607,260

Share warrants are specific to the Company's listing on the Toronto Stock Exchange (TSX) and retain the same characteristics as share options but are referred to separately under the TSX listing rules.

 

END

 

 

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