RNS Number:7576P
Tianshan Goldfields Ltd
11 March 2008
TIANSHAN GOLDFIELDS LIMITED
("TIANSHAN" OR THE "COMPANY")
INTERIM RESULTS FOR THE SIX MONTHS ENDED
31 DECEMBER 2007
DIRECTORS' REPORT
The Directors submit their report for Tianshan and its controlled entities, for
the half year ended 31 December 2007.
DIRECTORS
The names and details of the directors in office during the half year and until
the date of this report are as follows. The Directors were in office for the
entire period unless otherwise stated.
Keith Stuart Liddell (Non Executive Chairman)
BSc (Hons), MSc (Engineering), FAusIMM, CP (Metallurgy), CP (Management) (Aust),
C Eng (UK), Pr Eng (South Africa), FIE Aust, FSAIMM, MIMMM
Grant Thomas (Managing Director)
BSc (Hons), MAusIMM
David Barry Evans (Executive Director)
BSc Mechanical Engineering, South African Government Certificate of Competency
for the Mines - Mech Eng, South African Professional Engineer
Graham Woolford (Non Executive Director)
MBA
Appointed 19 October 2007
Mark John Ashley (Non Executive Director)
Resigned 10 September 2007.
Company Secretaries
Jason Anthony Bontempo
B.Business, ACA
Mark Graham Bolton
B.Business, Graduate Diploma in Applied Finance and Investment
Resigned 25 February 2008.
REVIEW AND RESULTS OF OPERATIONS
The consolidated entity recorded an operating loss after income tax of $953,600
(2006: $667,405) for the half year ended 31 December 2007.
The Gold Mountain Project, located in north west China, has been the subject of
an extensive diamond drilling programme which the Company commenced in 2003.
The focus of drilling activity has centred on the Yelmand-Jinxi, Lion and
Mayituobi deposits. The Yelmand, Jinxi and Balake prospects previously reported
separately as the Yelmand and Jinxi deposits, are now reported as the
Yelmand-Jinxi deposit.
In 2007 a total of 134 drillholes have been completed for a total of 14,916
metres drilled.
Drilling during the half year to 31 December 2007 confirmed grade continuity and
extensions to the west of the Yelmand-Jinxi deposit. A high grade feeder
structure was confirmed in the south east of the Yelmand-Jinxi deposit, and
shallow mineralisation extends to the southwest.
During the year work continued on pre-feasibility studies for a potential open
pit and heap leach mining operation, including site survey and soil sampling
work to select suitable locations for leach pads at Yelmand and Mayituobi.
Design work commenced and Chinese Design Institutes continued baseline
environmental studies.
A regional exploration drilling programme of 3,252 metres was completed in 2007.
Significant mineralisation was reported at the Tekexi and Awulia prospects on
the regional Nalensayi Tenement during the year.
Following the completion of the 2007 field season, Tianshan is very pleased to
report Mineral Resource estimates for the Yelmand, Jinxi (includes Balake),
Mayituobi deposits and the new Lion deposit within the Gold Mountain Project
(Table 1).
Table 1: Gold Mountain Micromine January 2008 Mineral Resource Estimate (at 0.4
g/t Au cut-off grade) in accordance with JORC guidelines
Tianshan Goldfields - Gold Mountain Project - Total Mineral Resource as at January 2008
Measured Indicated Inferred Total Resource
Deposit Tonnes Au Au Tonnes Au g Au Ounces Tonnes Au Au Tonnes Au g Au Ounces
g/t Ounces /t g/t Ounces /t
Yelmand-Jinxi 21,942,000 0.9 642,000 46,422,000 0.9 1,268,000 16,807,000 0.9 473,000 85,172,000 0.9 2,383,000
Mayituobi 1,269,000 1.1 43,000 2,251,000 0.9 62,000 436,000 0.7 10,000 3,957,000 0.9 115,000
Lion 26,000 0.7 538 1,221,000 0.6 22,000 4,398,000 0.8 119,000 5,644,000 0.8 142,000
Total 23,237,000 0.9 686,000 49,894,000 0.8 1,352,000 21,641,000 0.9 601,000 94,772,000 0.9 2,640,000
Note: Figures used are rounded
The Company's exploration and drilling in 2007 has delivered a significant
upgrade in the classification of the resources at Gold Mountain with combined
total Measured and Indicated mineral resources increasing to over 2 million
ounces.
The combined total Measured, Indicated and Inferred Mineral Resources for
Yelmand-Jinxi, Mayituobi and Lion is estimated at 95 million tonnes at 0.9g/t Au
for 2.64 million ounces of gold (at 0.4g/t Au lower cut-off grade).
2007 drilling delivers a better constrained resource suitable for input into pit
optimisation studies currently underway.
Work in 2008 will include infill resource drilling to identify higher grade
feeder zones confirmed at Jinxi and possibly Yelmand, complete feasibility
studies currently underway for a potential open pit and heap leach mining
operation, and drill test targets identified in 2007.
CORPORATE SUMMARY
The Gold Mountain Project is wholly owned by Xinjiang Gold Mountain Mining
Company Limited ("the Joint Venture"). The Joint Venture is a Sino foreign
co-operative joint venture company of which Mineral Securities (Xinjiang) Pty
Limited ("MSJ") is a joint venture partner. Through MSJ the Company holds a 90%
interest in the Joint Venture with the Company's Chinese partners to remain at
10% for the life of the project.
As at 31 December 2007, Tianshan had made US$20.0 million in capital
contributions to the registered capital of the Joint Venture.
Tianshan announced on the 9 November 2007 that it intended to place 31,000,000
ordinary shares at A$0.50 to raise A$15.5m as an excluded offer to institutional
investors. A total of 28,000,000 shares were subsequently issued and settled in
late November 2007, utilising the Company's 15% placement capacity. The balance
of 3,000,000 shares were issued pursuant to ASX Listing rule 7.1 following a
shareholder meeting held on the 15 February 2008. The placement proceeds will be
applied to the completion of feasibility studies and the 2008 drilling field
programme for the Gold Mountain project.
At the Annual General meeting of shareholders held on the 23 November 2007 the
Company voted in favour of the acquisition by Mineral Securities Limited of
26,000,000 ordinary fully paid shares in the Company on conversion of a
preference share, on terms and conditions more particularly described in the
Explanatory Memorandum accompanying the Notice of Meeting sent to shareholders
and announced to the ASX on the 17 October 2007.
During the half year the following options were converted into fully paid
shares:
* 3,300,000 options at an exercise price of $0.34; and
* 750,000 options at an exercise price of $0.175.
The conversion of these options raised $1,253,250 in capital for the Company.
As at 31 December 2008 there were 244,317,597 ordinary shares and 30,878,931
options on issue.
For further details regarding the issued and quoted securities for the Company
please refer to the latest announcements.
AUDITOR'S INDEPENDENCE DECLARATION
Section 307C of the Corporations Act 2001 requires our auditors, HLB Mann Judd,
to provide the directors of Tianshan with an Independence Declaration in
relation to the review of the half year financial report. This Independence
Declaration is set out on page four and forms part of this report.
Signed in accordance with a resolution of the directors.
Keith Liddell
Non Executive Chairman
10 March 2008
Auditors Independent Statement
As lead auditor for the review of the financial report of Tianshan Goldfields
Limited for the half-year ended 31 December 2007, I declare that to the best of
my knowledge and belief, there have been no contraventions of:
a) the auditor independence requirements of the Corporations
Act 2001 in relation to the review; and
b) any applicable code of professional conduct in relation to
the review.
This declaration is in respect of Tianshan Goldfields Limited.
Perth, Western Australia L DI GIALLONARDO
10 March 2008 Partner, HLB Mann Judd
INDEPENDENT AUDITOR'S REVIEW REPORT
To the members of
Tianshan Goldfields Limited
Report on the Half-Year Financial Report
We have reviewed the accompanying half-year financial report, which comprises
the condensed balance sheet as at 31 December 2007, the condensed income
statement, condensed statement of changes in equity, condensed cash flow
statement and notes to the financial statements for the half-year ended on that
date, and the directors' declaration, of Tianshan Goldfields Limited and the
entities it controlled during the half-year ended 31 December 2007 ("
consolidated entity").
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 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
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 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 2007 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 Tianshan Goldfields 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.
Independence
In conducting our review, we have complied with the independence requirements of
the Corporations Act 2001. We confirm that the independence declaration
required by the Corporations Act 2001 has been provided to the directors of
Tianshan Goldfields Limited on 10 March 2008.
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 Tianshan
Goldfields 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 at 31 December 2007 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.
HLB MANN JUDD
Chartered Accountants
Perth, Western Australia L DI GIALLONARDO
10 March 2008 Partner
Directors' Statement
In accordance with a resolution of the directors of Tianshan Goldfields Limited,
I state that:
In the opinion of the directors:
(a) the financial statements and notes of the Consolidated Entity as set
out on pages 8 to 16:
(i) give a true and fair view of the consolidated entity's financial
position as at 31 December 2007, and of its performance for the half
year ended on that date; and
(ii) comply with Accounting Standard 134 "Interim Financial 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.
On behalf of the Board.
Keith Liddell
Non Executive Chairman
10 March 2008
Condensed Income Statement
FOR THE HALF YEAR ENDED 31 DECEMBER 2007 CONSOLIDATED
31 DEC 31 DEC
2007 2006
$ $
REVENUES 165,474 297,979
EXPENSES
Employee and consultancy expenses (384,834) (318,929)
Administration expenses (66,748) (120,000)
Public relations expenses (21,083) (48,917)
Insurance expenses (10,225) (26,092)
Finance expenses - (6,307)
Corporate expenses (134,147) (146,887)
Travel expenses (175,612) (106,745)
Depreciation (4,099) (7,275)
Other expenses (322,326) (184,232)
LOSS BEFORE INCOME TAX EXPENSE (953,600) (667,405)
INCOME TAX EXPENSE - -
LOSS AFTER TAX FROM CONTINUING OPERATIONS (953,600) (667,405)
NET LOSS FOR THE PERIOD (953,600) (667,405)
NET PROFIT ATTRIBUTABLE TO MINORITY INTEREST - -
NET LOSS ATTRIBUTABLE TO MEMBERS OF TIANSHAN (953,600) (667,405)
GOLDFIELDS LIMITED
Basic loss per share (cents per share) (0.43) (0.36)
Diluted loss per share (cents per share) (0.43) (0.36)
Condensed Balance Sheet
AS AT 31 DECEMBER 2007 CONSOLIDATED
AS AT AS AT AS AT
31 DEC 30 JUNE 31 DEC
2007 2007 2006
Note $ $ $
ASSETS
CURRENT ASSETS
Cash and cash equivalents 17,455,523 7,662,028 10,110,525
Trade and other receivables 204,064 55,622 30,577
TOTAL CURRENT ASSETS 17,659,587 7,717,650 10,141,102
NON-CURRENT ASSETS
Plant and equipment 225,073 217,601 228,938
Deferred exploration expenditure 3 26,536,295 23,258,592 21,675,729
TOTAL NON-CURRENT ASSETS 26,761,368 23,476,193 21,904,667
TOTAL ASSETS 44,420,955 31,193,843 32,045,769
LIABILITIES
CURRENT LIABILITIES
Trade and other payables 293,652 997,172 61,250
TOTAL CURRENT LIABILITIES 293,652 997,172 61,250
TOTAL LIABILITIES 293,652 997,172 61,250
NET ASSETS 44,127,303 30,196,671 31,984,519
EQUITY
Parent entity interest
Issued capital 2 51,358,040 36,649,544 36,557,044
Reserves 1,506,909 1,348,747 2,092,140
Accumulated losses (10,606,490) (9,652,890) (8,609,219)
Parent entity interest 42,258,459 28,345,401 30,039,965
Minority interests 1,868,844 1,851,270 1,944,554
TOTAL EQUITY 44,127,303 30,196,671 31,984,519
Condensed Cash Flow Statement
FOR THE HALF YEAR ENDED 31 DECEMBER 2007 CONSOLIDATED
31 DEC 31 DEC
2007 2006
$ $
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers - 6,390
Payments to suppliers and employees (1,019,283) (570,454)
Interest received 165,474 291,589
Interest paid - (6,307)
Expenditure on exploration interests (4,142,992) (7,357,310)
NET CASH FLOWS USED IN OPERATING ACTIVITIES (4,996,801) (7,636,092)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of plant and equipment (28,746) 2,138
Purchase of controlled entity - -
NET CASH FLOWS USED IN INVESTING ACTIVITIES (28,746) (2,138)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issues of shares 14,943,306 -
Repayment of borrowings - (1,500,000)
Payment of share issue costs - (137,500)
NET CASH FLOWS PROVIDED BY FINANCING 14,943,306 (1,637,500)
ACTIVITIES
NET INCREASE/(DECREASE) IN CASH HELD 9,917,759 (9,271,454)
Add opening cash brought forward 7,662,028 19,441,505
Effects of exchange rates on cash (124,264) (59,526)
CASH AND CASH EQUIVALENTS AT END OF 17,455,523 10,110,525
REPORTING PERIOD
Condensed Statement of Changes in Equity
FOR THE HALF YEAR ENDED 31 DECEMBER 2007
ATTRIBUTABLE TO EQUITY HOLDERS OF THE COMPANY
Issued Accumulated Other Total Minority Total Equity
Capital Losses Reserves Interest
$ $ $ $ $ $
At 1 July 2006 35,457,344 (7,941,814) 2,767,127 30,282,657 2,026,325 32,308,982
Foreign currency translation - - (735,937) (735,937) (81,771) (817,707)
Cost of share based payments - - 60,950 60,950 - 60,950
Issue of share capital 67,200 - - 67,200 - 67,200
Unallotted shares 1,170,000 - - 1,170,000 - 1,170,000
Loss for the period - (667,405) - (667,405) - (667,405)
Capital raising fees (137,500) - - (137,500) - (137,500)
At 31 December 2006 36,557,044 (8,609,219) 2,092,140 30,039,966 1,944,554 31,984,520
At 1 July 2007 36,649,544 (9,652,890) 1,348,747 28,345,401 1,851,270 30,196,671
Foreign currency translation - - 158,162 158,162 17,574 175,736
Cost of share based payments - - - - - -
Issue of share capital 15,253,250 - - 15,253,250 - 15,253,250
Unallotted shares - - - - - -
Loss for the period - (953,600) - (953,600) - (953,600)
Capital raising fees (544,754) - - (544,754) - (544,754)
At 31 December 2007 51,358,040 (10,606,490) 1,506,909 42,258,459 1,868,844 44,127,303
Notes to the Half Year Financial Statements
HALF YEAR ENDED 31 DECEMBER 2007
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
The half year consolidated financial statements are a general purpose financial
report prepared in accordance with the requirements of the Corporations Act
2001, applicable accounting standards including AASB 134: Interim Financial
Reporting and other authoritative pronouncements of the Australian Accounting
Standards Board.
The half year report has been prepared on a historical cost basis, except for
land and buildings, derivative financial instruments and available for sale
financial assets which are measured at fair value. The carrying value of
recognised assets and liabilities that are hedged with fair value hedges are
adjusted to record changes in the fair values attributable to the risks that are
being hedged.
It is recommended that this financial report be read in conjunction with the
annual financial report for the year ended 30 June 2007 and any public
announcements made by Tianshan Goldfields Limited ("Tianshan" or "the Company")
and its controlled entities during the half year in accordance with continuous
disclosure requirements arising under the Corporations Act 2001.
The half year report does not include full disclosures of the type normally
included in an annual financial report. Therefore, it cannot be expected to
provide as full an understanding of the financial performance, financial
position and cash flows of the consolidated entity as in the full financial
report.
For the purpose of preparing the half year report, the half year has been
treated as a discrete reporting period. 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 2007 annual
financial report for the financial year ended 30 June 2007. In the half year
ended 31 December 2007, 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
July 2007. 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 Group accounting
policies.
(a) Principles of Consolidation
The consolidated financial report comprises the financial statements of Tianshan
and its controlled entities.
A controlled entity is any entity controlled by Tianshan whereby Tianshan has
the power to control the financial and operating policies of an entity so as to
obtain benefits from its activities.
The financial statements of controlled entities are prepared for the same
reporting period as the parent company, using consistent accounting policies.
Accounting policies of controlled entities have been changed where necessary to
ensure consistencies with those policies applied by the parent entity.
All inter company balances and transactions between entities in the consolidated
entity, including any unrealised profits or losses, have been eliminated on
consolidation.
Where controlled entities have entered or left the consolidated entity during
the year, their operating results have been included/excluded from the date
control was obtained, or until the date control ceased.
Minority interests in the equity and results of the entities that are controlled
are shown as a separate item in the consolidated financial report.
(b) Income Tax
Deferred income tax is provided for on all temporary differences at balance date
between the tax base of assets and liabilities and their carrying amounts for
financial reporting purposes.
No deferred income tax will be recognised from the initial recognition of an
asset or liability, excluding a business combination, where there is no effect
on accounting or taxable profit or loss.
Deferred tax is calculated at the tax rates that are expected to apply to the
period when the asset is realised or liability is settled. Deferred tax is
credited in the income statement except where it relates to items that may be
credited directly to equity, in which case the deferred tax is adjusted directly
against equity.
Deferred income tax assets are recognised to the extent that it is probable that
future tax profits will be available against which deductible temporary
differences can be utilised.
The amount of benefits brought to account, or which may be realised in the
future, is based on the assumption that no adverse change will occur in income
taxation legislation and the anticipation that the consolidated entity will
derive sufficient future assessable income to enable the benefit to be realised
and comply with the conditions of deductibility imposed by the law. The
carrying amount of deferred tax assets is reviewed at each balance date and only
recognised to the extent that sufficient future assessable income is expected to
be obtained.
(c) Property, Plant and Equipment
Each class of property, plant and equipment is carried at cost or fair value
less, where applicable, any accumulated depreciation and impairment losses.
Plant and Equipment
Plant and equipment are measured on the cost basis less depreciation and
impairment losses.
The cost of fixed assets constructed within the economic entity includes the
cost of materials, direct labour, borrowing costs and an appropriate proportion
of fixed and variable overheads.
Subsequent costs are included in the assets carrying amount or recognised as a
separate asset, as appropriate, only when it is probable that future economic
benefits associated with the item will flow to the group and the cost of the
item can be measured reliably. All other repairs and maintenance are charged to
the income statement during the financial period in which they are incurred.
Impairment
Carrying values of assets are reviewed at each balance date to determine whether
there are any objective indicators of impairment that may indicate the carrying
values may not be recoverable in whole or in part.
Where an asset does not generate cash flows that are largely independent it is
assigned to cash generating unit and the recoverable amount test applied to the
cash generating unit as a whole.
Recoverable amount is determined as the greater of fair value less costs to sell
and value in use. The assessment of value in use considers the present value of
future cash flows discounted using an appropriate pre-tax discount rate
reflecting the current market assessments of the time value of money and risks
specific to the asset.
If the carrying value of the asset is determined to be in excess of its
recoverable amount, the asset or cash generating unit is written down to its
recoverable amount.
Depreciation
The depreciable amount of all fixed assets including building and capitalised
lease assets, but excluding freehold land, is depreciated on a straight line
basis over their useful lives to the consolidated entity commencing from the
time the asset is held ready for use. Leasehold improvements are depreciated
over the shorter of either the unexpired period of the lease or the estimated
useful lives of the improvements.
The depreciation rates used for each class of depreciable assets are:
Class of Fixed Asset Depreciation Rate
Plant and equipment 10%
The assets residual values and useful lives are reviewed, and adjusted if
appropriate, at each balance sheet date.
Gains and losses on disposals are determined by comparing proceeds with the
carrying amount. These gains and losses are included in the income statement.
When revalued assets are sold, amounts included in the revaluation reserve
relating to that asset are transferred to retained earnings.
(d) Exploration and Development Expenditure
Exploration, evaluation and development expenditure incurred is accumulated in
respect of each identifiable area of interest. These costs are only carried
forward to the extent that the consolidated entity's rights of tenure to that
area of interest are current and that the costs are expected to be recouped
through the successful development of the area or where activities in the area
have not yet reached a stage that permits reasonable assessment of the existence
of economically recoverable reserves.
Accumulated costs in relation to an abandoned area are written off in full
against profit in the year in which the decision to abandon the area is made.
When production commences, the accumulated costs for the relevant area of
interest are amortised over the life of the area according to the rate of
depletion of the economically recoverable reserves.
A regular review is undertaken of each area of interest to determine the
appropriateness of continuing to carry forward costs in relation to that area of
interest.
Costs of site restoration are provided over the life of the facility from when
exploration commences and are included in the costs of that stage. Site
restoration costs include the dismantling and removal of mining plant, equipment
and building structures, waste removal, and rehabilitation of the site in
accordance with clauses of the mining permits. Such costs have been determined
using estimates of future costs, current legal requirements and technology on an
undiscounted basis.
(d) Exploration and Development Expenditure (cont'd)
Any changes in the estimates for the costs are accounted on a prospective basis.
In determining the costs of site restoration, there is uncertainty regarding the
nature and extent of the restoration due to community expectations and future
legislation. Accordingly the costs have been determined on the basis that the
restoration will be completed within one year of abandoning the site.
(e) Foreign Currency Transactions and Balances
The functional and presentation currency of Tianshan is Australian dollars.
Transactions in foreign currencies are initially recorded in the functional
currency at the exchange rates ruling at the date of the transaction. Monetary
assets and liabilities denominated in foreign currencies are retranslated at the
rate of exchange ruling at the balance sheet date.
All differences in the consolidated financial report are taken to the income
statement with the exception of differences on foreign currency borrowings that
provide a hedge against a net investment in a foreign entity. These are taken
directly to equity until the disposal of a net investment, at which time they
are recognised in the income statement.
Tax charges and credits attributable to exchange differences on those borrowings
are also recognised in equity.
Non-monetary items that are measured in terms of historical cost in a foreign
currency are translated using the exchange rate as at the date of the initial
transaction.
Non-monetary items measured at fair value in a foreign currency are translated
using the exchange rate at the date the fair value was determined.
The functional currency of the overseas subsidiaries is Chinese Yuan Rimimbi
("RMB").
As at the reporting date, the assets and liabilities of these overseas
subsidiaries are translated into the reporting currency of Tianshan at the rate
of exchange ruling at the balance sheet date and the income statements are
translated at the weighted average exchange rates for the period.
The exchange differences on the retranslation are taken directly to a separate
component of equity.
On disposal of a foreign entity, the deferred cumulative amount recognised in
equity is recognised in the income statement.
(f) Cash and Cash Equivalents
Cash and cash equivalents include cash on hand, deposits held at call with
banks, other short term highly liquid investments with original maturities of
three months or less, and bank overdrafts. Bank overdrafts are shown within
short term borrowings in current liabilities on the balance sheet.
(g) Revenue
Revenue is recognised to the extent that it is probable that the economic
benefits will flow to the consolidated entity and the revenue is capable of
being reliably measured.
Interest revenue is recognised on a proportional basis taking into account the
interest rates applicable to the financial assets.
All revenue is stated net of the amount of goods and services tax.
(h) Goods and Services Tax ("GST")
Revenues, expenses and assets are recognised net of the amount of GST, except
where the amount of GST incurred is not recoverable from the Australian Taxation
Office. In these circumstances the GST is recognised as part of the cost of
acquisition of the asset or as part of an item of the expense. Receivables and
payables in the balance sheet are shown inclusive of GST.
Cash flows are presented in the cash flow statement on a gross basis, except for
the GST component of investing and financing activities, which are disclosed as
operating cash flows.
2. ISSUED CAPITAL
CONSOLIDATED
31 DEC 30 June
2007 2007
$ $
Ordinary shares
Issued and fully paid 51,358,040 35,479,544
Unallotted preference shares - 1,170,000
Total 51,358,040 36,649,544
Movements in ordinary shares on issue
Issued For Date Number of Shares Price Amount Paid
At 1 July 2007 186,267,597 35,479,544
Conversion of preference share 26,000,000 0.045 1,170,000
Public equity raising 28,000,000 0.50 14,000,000
Issued for cash on exercise of share 1,925,000 0.34 654,500
option
Issued for cash on exercise of share 750,000 0.175 131,250
option
Issued for cash on exercise of share 1,375,000 0.34 467,500
option
Capital raising fees (544,754)
At 31 December 2007 244,317,597 51,358,040
Movements in unallotted shares
Issued For Date Number of Shares Price Amount Paid
At 1 July 2007 26,000,000 0.045 1,170,000
Conversion of preference share (26,000,000) 0.045 (1,170,000)
At 31 December 2007 - -
3. DEFERRED EXPLORATION EXPENDITURE
HALF YEAR ENDED HALF YEAR ENDED
Costs carried forward in respect of areas of interest in the following 31 DEC 30 JUNE
phases:
2007 2007
Exploration and evaluation phase - at cost
Balance at beginning of year 23,258,592 21,675,729
Acquisition of prospects 16,232 (91,533)
Expenditure incurred 3,261,472 1,674,396
26,536,296 23,258,592
4. DIVIDENDS
The company paid no dividends nor made any distribution payments during or after
the reporting period.
5. CONTINGENT LIABILITIES
There has been no change in contingent liabilities since the last annual
reporting date.
6. EVENTS SUBSEQUENT TO REPORTING DATE
No matters or circumstance have arisen since the end of the half year period
which significantly affected or may significantly affect the operations of the
Company, the results of those operations, or the state of affairs of the Company
in future financial periods, excluding the following:
(a) On 24 January 2008 the company issued 200,000 ordinary shares resulting from
the conversion of 200,000 options at an exercise price of $0.20.
(b) On 27 February 2008 the company issued 3,000,000 fully paid shares as
approved by shareholders at the General Meeting of Tianshan Goldfields Limited
which was held on 15 February 2008, at an issue price of $0.50 each.
7. SEGMENT REPORTING
During the half year the Consolidated Entity operated predominantly in gold
exploration in the Peoples Republic of China.
For more information please contact:
Tianshan Goldfields Limited
Level 22, Allendale Square
77 St Georges Tce
Perth WA 6000
Ph: +61 8 9221 7729
Fax: +61 8 9221 7866
Keith Liddell Chairman +61 8 9221 7729
Jason Bontempo Chief Financial Officer +61 8 9221 7729
WH Ireland Limited
11 St James's Square
Manchester
England
M2 6WH
Ph: +44 161 832 2174
David Youngman/Katy Mitchell
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR ILFLEVTIILIT
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