CGA Mining Limited Half-Year Financial Statements

PERTH, Western Australia, Feb. 14, 2012 /CNW/ -

CGA MINING LIMITED HALF-YEAR FINANCIAL STATEMENTS

ABN 88 009 153 128

Financial Report
For the half year ended
31 December 2011

CORPORATE DIRECTORY

DIRECTORS:       SHARE REGISTER:
Mark S Savage       Australian Register
Michael J Carrick       Computershare Investor Services Pty Limited
Justine A Magee       Level 2
David A T Cruse       45 St Georges Terrace
Phillip C Lockyer       Perth  WA  6000
Robert N Scott        
        Telephone: 1300 557 010 or
SECRETARY:                       + 61 8 9323 2000
Hannah C Hudson       Facsimile: + 61 8 9323 2033
         
REGISTERED AND PRINCIPAL OFFICE:       Canadian Register
Level 5       Computershare Investor Services Inc
BGC Centre       100 University Ave, 11th Floor
28 The Esplanade       Toronto Ontario M5J2Y1
Perth WA 6000       Canada
         
TELEPHONE: +61 8 9263 4000       Telephone: +1 416 263 9449
FACSIMILE: +61 8 9263 4020       Facsimile:  +1 416 981 9800
         
BANKERS:       LAWYERS
Australia and New Zealand Banking Group Limited       Middletons
77 St Georges Terrace       Level 32
Perth  WA  6000       44 St Georges Terrace
        Perth WA 6000
BNP Paribas        
20 Collyer Quay       Blake, Cassels & Graydon
Tung Centre       Suite 2600
Singapore 049319       3 Bentall Centre
        59 Burrard Street
AUDITORS:       Vancouver, B.C. Canada
Ernst & Young       V7X 1L3
11 Mounts Bay Road        
Perth  WA  6000        
        NORTH AMERICAN CONTACT:
STOCK EXCHANGE:       Mark S Savage
Australian Securities Exchange Limited       1703 Edwardo y Juanita Ct
Exchange Code:       Albuquerque, New Mexico, 87107, USA
CGX - Fully paid ordinary shares        
        Telephone: +1 505 344 2822
Toronto Stock Exchange Inc       Facsimile: +1 505 344 2922
Exchange Code:       Email: marksavage@comcast.net
CGA - Fully paid ordinary shares        

DIRECTORS' REPORT

The Directors of CGA Mining Limited ("the Company" or "CGA") present their report and the financial statements of CGA and its wholly owned controlled entities (the "Consolidated Entity" or "the Group")  for the half year ended 31 December 2011.

DIRECTORS

The names of the Company's directors in office during the half year and until the date of this report are as below. All Directors were in office for this entire period unless stated otherwise.

Mark S Savage
Michael J Carrick
Justine A Magee
Phillip C Lockyer
Robert N Scott
David A T Cruse

REVIEW AND RESULTS OF OPERATIONS

Operating Results

The Consolidated Entity recorded a gross profit of $1,464,759 (2010: $43,075,151) and a net loss of $9,007,881 (2010: net profit $39,019,142) for the half-year ended 31 December 2011. The Group's activities during the half year period focussed on completing the repairs to SAG Mill, which were finalised in December 2011. With the repair of the SAG Mill completed, the Groups production is expected to return to normal for the second half of the financial year.

AUDITOR'S INDEPENDENCE DECLARATION

A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001 is set out on page 3, which forms part of the director's report.

This report is made in accordance with a resolution of the directors.

(signed)

MICHAEL CARRICK
Director
Perth

14 February 2012

Auditor's Independence Declaration to the Directors of CGA Mining Limited

In relation to our review of the financial report of CGA Mining Limited for the half-year ended 31 December 2011, to the best of my knowledge and belief, there have been no contraventions of the auditor independence requirements of the Corporations Act 2001 or any applicable code of professional conduct.

(signed)

Ernst & Young

(signed)

Peter McIver
Partner
Perth
14 February 2012

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE HALF YEAR ENDED 31 DECEMBER 2011   Consolidated
  Note Six months
ended 31 December
Six months
ended 31 December
    2011 2010
    US$ US$
       
Revenue from continuing operations 3(a) 57,327,794 120,583,888
Cost of sales 3(b) (55,863,035) (77,508,737)
Gross Profit   1,464,759 43,075,151
       
Other Income   2,383,481 -
       
Administrative expenses 3(c) (1,979,027) (2,292,634)
Finance costs 3(e) (1,587,721) (2,182,174)
Gain on deconsolidation   - 2,929,067
Movement in fair value of derivative financial instruments 3(d) (622,891) 174,660
Share of loss of associate   (2,155,573) (613,172)
Other expenses 3(f) (6,541,697) (1,793,902)
       
(Loss)/profit from continuing operations before income tax expense   (9,058,669) 39,296,996
       
Income tax benefit/(expense) 4 50,788 -
       
Net (Loss)/profit for the period from continuing operations for the period   (9,007,881) 39,296,996
       
Discontinued Operations      
Loss from discontinued operations   - (277,854)
Net (loss)/profit for the period   (9,007,881) 39,019,142
       
Other comprehensive income      
Movement in available for sale investments net of tax   (1,170,180) 4,122,610
Cashflow hedges:      
Transferred to the income statement net of tax   24,206,239 11,157,366
Gain/(loss) taken to equity net of tax   (11,434,417) (27,676,234)
Other comprehensive income/(loss) for the period, net of tax   11,601,642 (12,396,258)
       
Total comprehensive income for the period   2,593,761 26,622,884
       
(Loss)/earnings per share for (loss)/profit from continuing operations attributable to the ordinary equity holders of the company      
Basic (loss)/earnings per share (cents)   (2.70) 11.84
Diluted (loss)/earnings per share (cents)   (2.67) 11.76
       
(Loss)/earnings per share for (loss)/profit attributable to the ordinary equity holders of the company      
Basic (loss)/earnings per share (cents)   (2.72) 11.76
Diluted (loss)/earnings per share (cents)   (2.66) 11.67
       

The above Statement of Comprehensive Income should be read in conjunction with the accompanying notes.

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 31 DECEMBER 2011                                                                                         Consolidated
                                                                                        Note 31-Dec 30-Jun
                                                                                          2011 2011
ASSETS                                                                                         US$ US$
Current Assets                                                                                            
Cash and cash equivalents                                                                                       10 72,995,659 107,336,345
Trade and other receivables                                                                                       13 5,101,831 704,291
Inventory                                                                                       11 20,722,330 17,063,423
Prepayments                                                                                         11,920,262 7,849,902
Derivative financial assets                                                                                       8 781,285 1,759,748
Total Current Assets                                                                                         111,521,367 134,713,709
                                                                                             
Non-Current Assets                                                                                            
Available for sale financial assets                                                                                       15 3,011,496 4,181,703
Investment in associate                                                                                       12 81,785,514 71,574,437
Property plant and equipment                                                                                         190,457,029 191,355,070
Intangible assets                                                                                         37,633,094 38,278,394
Tax assets                                                                                         20,452,031 19,532,657
Total Non-current Assets                                                                                         333,369,164 324,922,261
TOTAL ASSETS                                                                                         444,890,531 459,635,970
                                                                                             
LIABILITIES                                                                                            
Current Liabilities                                                                                            
Trade and other payables                                                                                         10,840,916 12,697,346
Interest bearing loans and borrowings                                                                                       7 30,030,748 22,077,574
Derivative financial liabilities                                                                                       9 40,504,259 37,770,654
Provisions                                                                                         583,375 527,119
Total Current Liabilities                                                                                         81,959,298 73,072,693
                                                                                             
Non-Current Liabilities                                                                                            
Interest bearing loans and borrowings                                                                                       7 36,160,899 46,953,180
Provisions                                                                                         1,084,481 911,306
Derivative financial liabilities                                                                                       9 33,621,367 49,482,368
Deferred Tax Liability                                                                                         5,817,260 6,116,880
Total Non-current Liabilities                                                                                         76,684,007 103,463,734
TOTAL LIABILITIES                                                                                         158,643,305 176,536,427
NET ASSETS                                                                                         286,247,226 283,099,543
                                                                                             
EQUITY                                                                                            
Contributed equity                                                                                       6 302,110,028 302,016,570
Reserves                                                                                         (56,804,890) (68,866,996)
Retained Profits                                                                                         40,942,088 49,949,969
TOTAL EQUITY                                                                                         286,247,226 283,099,543

The above Statement of Financial Position should be read in conjunction with the accompanying notes.

CONSOLIDATED STATEMENT OF CASHFLOWS

FOR THE HALF YEAR ENDED 31 DECEMBER 2011   Consolidated
    Six months
ended 31
December
2011
Six months
ended 31
December
2010
 
 
 
    US$ US$
Cash flows from operating activities      
Receipts from customers   55,834,322 118,889,399
Payments to suppliers and employees   (60,706,205) (71,747,323)
Interest received   37,839 87,965
Exploration and evaluation expenditure   - (277,854)
Taxes and VAT paid   (2,347,854) -
Net cash inflow/(outflow) from operating activities   (7,181,898) 46,952,187
       
Cash flows from investing activities      
Payments for property, plant and equipment   (4,578,911) (2,227,357)
Loans to associate   (6,011,018) (24,384,807)
Loan to non- related parties   - (14,458,626)
Disposal of controlled entity   - 135,636
Investment in associates   (4,900,000) -
Investment in available for sale financial assets   - (1,011,941)
Net cash inflow/(outflow) from investing activities   (15,489,929) (41,947,095)
       
Cash flows from financing activities      
Proceeds from issue of shares, warrants and options   93,459 2,053,397
Repayment of borrowings   (10,069,402) (14,166,955)
Interest paid   (1,458,587) (2,013,514)
Capital raising costs   - (2,338)
Financing costs   (179,215) (138,241)
Net cash inflow from financing activities   (11,613,745) (14,267,651)
       
Net increase/ (decrease) in cash and cash equivalents   (34,285,572) (9,262,560)
       
Cash and cash equivalents at beginning of financial period   107,336,346 87,787,358
       
Effects of exchange rate fluctuations on the balances of cash held in foreign currencies   (55,115) (201,772)
       
Cash and cash equivalents at the end of the financial period
72,995,659 78,323,026
       

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE HALF YEAR ENDED 31 DECEMBER 2011

CONSOLIDATED Contributed
Equity
Retained
Profit/(Accumulated
losses)
Foreign
Currency
Translation
Reserve
Share
Based
Payments
Reserve
Cash Flow
Hedge Reserve
Available
for Sale
Reserve
Total
  US$ US$ US$ US$ US$ US$ US$
At 1 July 2011 302,016,570 49,949,969 5,815,359 5,862,078 (82,678,901) 2,134,468 283,099,543
Other comprehensive income - - - - 12,771,822 (1,170,180) 11,601,642
(Loss) for the period - (9,007,881) - - - - (9,007,881)
Total comprehensive income for the period - (9,007,881) - - 12,771,822 (1,170,180) 2,593,761
Equity Transactions:              
Share-based payment - - - 460,464 - - 460,464
Exercise of options 93,458 - - - - - 93,458
At 31 December 2011 302,110,028 40,942,088 5,815,359 6,322,542 (69,907,079) 964,288 286,247,226

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE HALF YEAR ENDED 31 DECEMBER 2010

CONSOLIDATED Contributed
Equity
Retained
Profit/(Accumulated
losses)
Foreign
Currency
Translation
Reserve
Share Based
Payments
Reserve
Cash Flow
Hedge
Reserve
Available
for Sale Reserve
Total
  US$ US$ US$ US$ US$ US$ US$
At 1 July 2010 299,576,520 (15,132,295) 5,815,359 4,941,151 (72,551,338) 447,394 223,096,791
Other comprehensive income - - - - (16,518,868) 4,122,611 (12,396,257)
Profit for the period - 39,019,142 - - - - 39,019,142
Total comprehensive income for the period - 39,019,142 - - (16,518,868) 4,122,611 26,262,884
Equity Transactions:              
Issue of share capital   - - - - - -
Transaction costs (9,352) - - - - - (9,352)
Exercise of options 2,254,693 - - - - - 2,254,693
At 31 December  2010 301,821,861 23,886,847 5,815,359 4,941,151 (89,070,206) 4,570,005 251,965,017

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED 31 DECEMBER 2011

1. CORPORATE INFORMATION

The financial report of CGA Mining Limited ("the Company") for the half-year ended 31 December 2011 was authorised for issue in accordance with a resolution of the directors on 14 February 2012.  CGA Mining Limited is a company incorporated and domiciled in Australia and limited by shares which are publicly traded on the Australian Securities Exchange and the Toronto Stock Exchange.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The half-year financial report does not include all notes of the type normally included within the annual financial report and therefore cannot be expected to provide as full an understanding of the financial performance, financial position and financing and investing activities of the consolidated entity as the full financial report.

The half year financial report should be read in conjunction with the Annual Financial Report of CGA Mining Limited as at 30 June 2011.

It is also recommended that the half-year financial report be considered together with any public announcements made by CGA Mining Limited and its controlled entities during the half-year ended 31 December 2011 in accordance with the continuous disclosure obligations arising under ASX Listing Rules.

(a) Basis of Accounting

The half-year financial report is a general purpose condensed financial report prepared in accordance with the requirements of the Corporations Act 2001, and AASB 134 "Interim Financial Reporting".

The half-year financial report has been prepared on a historic cost basis, except for the derivative financial instruments including put options, forward sales contracts and Available for Sale Investments which are carried at fair value. The financial report is presented in United States Dollars ("US$").

For the purposes of preparing the half-year financial report, the half-year has been treated as a discrete reporting period.

(b) Significant accounting policies

The half-year financial report has been prepared using the same accounting policies as used in the annual financial statements for the year ended 30 June 2011 except for the adoption of new and amending standards mandatory for annual periods beginning on or after 1 July 2011 as described in Note 2(c).

(c) New and Revised Accounting Standards and Interpretations

Since 1 July 2011, the Group has adopted all the amending Standards and Interpretations, mandatory for annual periods beginning on or after 1 July 2011 including:

  • AASB 124 Related Party DisclosuresThe revised AASB 124 simplifies the definition of a related party, clarifying its intended meaning and eliminating inconsistencies from the definition
  • AASB 2009-12 Amendments to Australian Accounting Standards Arising from the Annual improvements Project
    This amendment affected the following standards:
    AASB 5, AASB 8, AASB 108, AASB 110, AASB 112, AASB 119, AASB 133, AASB 137, AASB 139, AASB 1023, AASB 1031, Interpretations 2, 4, 16, 1039 & 1052
    The amendments had no impact.
  • AASB 2009-14 Amendments to Australian Interpretation - Prepayments of a Minimum Funding Requirement
    The amendment requires entities to treat the benefit of such an early payment as a pension asset. Subsequently, the remaining surplus in the plan, if any, is subject to the same analysis as if no prepayment had been made.  The amendment had no impact.
  • AASB 1054 Australian Additional DisclosuresThis standard relocates all Australian specific disclosures from other standards to one place.  The amendment had no impact.
  • AASB 2010-4 Further amendments to Australian Accounting Standards arising from the annual improvements project
    This amendment affected the following standards:
    AASB 1, AASB 7, AASB 101, AASB 134 & Interpretation 13
    The amendment has no impact.
  • AASB 2010-5 Amendments to Australian Accounting Standards
    The standard makes numerous editorial amendments to a range of Australian Accounting Standards and Interpretations, including amendments to reflect changes made to the text of IFRS by the IASB.  These amendments have no major impact on the requirements of the amended pronouncements.  The amendments affect the following standards:
    AASB 1, AASB 3, AASB 4, AASB 5, AASB 101, AASB 107, AASB 112, AASB 118, AASB 119, AASB 121, AASB 132, AASB 133, AASB 134, AASB 137, AASB 139, AASB 140, AASB 1023, AASB 1038, Interpretations 112, 115, 127, 132 & 1042
    The amendment has no impact.
  • AASB 2010-6 Amendments to Australian Accounting Standards - Disclosures or Transfers of Financial Assets
    The amendments increase the disclosure requirements for transactions involving transfers of financial assets.  The amendment had no impact
  • AASB 2011-1 Amendments to Australian Accounting Standards arising from the Trans-Tasman Convergence project
    AASB 1, AASB 5, & AASB 107, AASB 108, AASB 121, AASB 132, AASB 134, Interpretations 2, 112 & 113.  The amendment had no impact

Adoption of these Standards and Interpretations did not have any material effect on the financial position or performance of the Group.

The Group has not elected to early adopt any other new standards or amendments that are issued but not yet effective.

   
  Consolidated
  Six months
ended 31
December
2011
Six months
ended 31
December
2010
3. REVENUES AND EXPENSES US$ US$
     
(a) Revenue    
Revenue from metal sales 55,633,790 118,889,399
Management fee 200,532 -
Interest - non related parties 37,839 391,326
Interest - accretion on loan to an associate 1,455,633 1,303,163
  57,327,794 120,583,888
(b) Cost of sales    
Ore purchases net of inventory movements 20,120,717 35,203,014
Salaries and employee benefits 779,878 776,509
Contractors and professional fees 6,634,244 7,692,339
Consumables and supplies 16,511,147 18,832,843
Leases and rentals 673,572 921,109
Travel and accommodation 238,093 169,258
Utilities 13,248 12,152
Taxes and government charges 867,909 1,194,800
Other production overheads 4,132,220 4,236,606
Depreciation and amortisation 5,892,007 8,470,107
  55,863,035 77,508,737
     
(c) Administrative expenses    
Salaries and wages 1,249,742 1,822,242
Defined contributions/superannuation expense 142,599 204,670
Employee share option expense 460,463 -
Foreign exchange (gains)/losses 55,111 161,724
Depreciation 71,112 103,998
  1,979,027 2,292,634
     
(d) Movement in fair value of derivative financial instruments - gain/(loss)    
Ineffectiveness in interest rate swap contracts (355,571) -
Mark to market movement in fuel swaps not qualifying for hedge accounting 978,462 174,660
  622,891 174,660
(e) Finance costs    
Borrowing costs expensed 1,587,721 2,149,536
Lending fees and charges - 32,638
  1,587,721 2,182,174
     
(f) Other expenses    
Included within other expenses for the current period are costs of $2,863,481 which were incurred to repair the SAG Mill.

4. INCOME TAX EXPENSE

The Company has recognised an income tax benefit of $50,788 for the 31 December 2011 period (nil: 31 December 2010) and a deferred tax liability of $5,817,260 at the balance date (30 June 2011: $6,116,880).  The Company considers it probable that any taxable income that may have arisen during the period will be reasonably offset against the Company's carry forward losses and the current tax holiday granted to its subsidiary, Phil. Gold Processing and Refining Corporation.

5. DIVIDENDS PAID OR PROVIDED FOR 

No dividends have been paid or provided for during the half-year.

6. CONTRIBUTED EQUITY 

  Consolidated
  31 December
2011
Number
31 December
2010
Number
(a)  Issued and paid up capital:    
Issued and fully paid shares 333,475,726 333,265,726
     
Weighted average number of shares    
Weighted average number of ordinary shares used in calculating basic earnings per share 333,447,507 331,820,248
Effect of dilutive options 5,220,606 2,432,872
Adjusted weighted average number of ordinary shares used in calculating diluted earnings per share 338,668,113 334,253,120
     
Movements in contributed equity during the past six months were as follows:  
   
Ordinary Shares Number US$
Opening balance at 1 July 2011 333,425,726 302,016,570
     
Shares issued on exercise of options 50,000 93,458
Total shares on issue at 31 December 2011 333,475,726 302,110,028
   
Ordinary Shares Number US$
Opening balance at 1 July 2010 331,294,976 299,576,520
     
Shares issued on exercise of options 1,970,750 2,254,693
Share issue costs - (9,352)
Total shares on issue at 31 December 2010 333,265,726 301,821,861

7. INTEREST BEARING LIABILITIES

   
  Consolidated
  31 December
2011
30 June
2011
  US$ US$
Current    
Loans (i) 24,225,504 16,272,330
Lease liabilities (ii) 5,805,244 5,805,244
  30,030,748 22,077,574
Non-Current    
Loans (i) 18,523,800 27,205,890
Lease liabilities (ii) 17,637,099 19,747,290
  36,160,899 46,953,180

(i) The Group began repaying the BNP Paribas arranged $80,300,000 project finance facility in June 2009. The balance of the facility accrues interest at 3.15% plus LIBOR. The loan is repayable quarterly, from June 2009 to 31 December 2013.  During December 2011, the Group entered into a premium funding arrangement for the renewal of ISR Insurance.  The term of the funding is for 10 months at an interest rate of 3.98%.

(ii) In December 2008 the Company entered into a finance lease for certain equipment to be used in the mining process at Masbate. The lease details are specified in the Masbate Technical Contract with Leighton Contractors (Philippines) Incorporated and Leighton Holdings Limited. The term of the lease is for 72 months and is secured over the underlying assets. The Company has also acquired an additional fleet during the 30 June 2011 year which is for a term of 60 months and both are secured over the underlying assets.  There are no changes in the terms & conditions of the lease for the additional fleet.

8. DERIVATIVE FINANCIAL ASSETS 

   
  Consolidated
  31 December
2011
30 June
2011
  US$ US$
     
Fuel swaps 781,285 1,759,748
  781,285 1,759,748

9. DERIVATIVE FINANCIAL LIABILITIES

   
  Consolidated
  31 December
2011
30 June
2011
  US$ US$
Current    
Gold forward sales contracts (i) 40,352,004 37,770,654
Interest rate swaps 152,255 -
  40,504,259 37,770,654
Non-current    
Gold forward sales contracts (i) 33,490,990 48,979,948
Interest rate swaps 130,377 502,420
  33,621,367 49,482,368

(i)     The US$80 million senior debt facility arranged by BNP Paribas requires limited hedging which has been executed. A hedging program of puts covering 46,079 ounces and forward sales covering 214,337 ounces (now only 108,371 ounces remain) was successfully executed during the September 2008 quarter. The derivative financial liabilities represent the fair values placed on the forward sales as at 31 December 2011.

10. CASH AND CASH EQUIVALENTS

For the purposes of the half year cash flow statement, cash and cash equivalents are comprised of the following:

 
  Consolidated
  31 December
2011
30 June
2011
  US$ US$
Cash at bank and on hand 48,924,184 75,228,173
Deposits at call 24,071,475 32,108,172
  72,995,659 107,336,345

Included in cash and cash equivalents is an amount of $9,000,000 held with BNP Paribas in line with the requirements of the project financing facility agreement which requires two quarters of principal payments due on the facility to be held in deposit.

11. INVENTORIES

   
  Consolidated
  31 December
2011
30 June
2011
  US$ US$
Gold on hand and in circuit 3,256,151 2,986,430
Gold in circuit 1,800,829 3,311,213
Consumables 9,300,872 7,625,071
Ore stockpile 6,364,478 3,140,709
  20,722,330 17,063,423

12. INVESTMENTS IN ASSOCIATES

On 7 November 2011, the Group acquired a further direct 19.5% interest in each of Aroroy Resources Inc and Masminero Resources Corporation, companies which are incorporated in the Philippines and own interests in the highly prospective Pajo MPSA. Exploration activities have already commenced on the MPSA.  The consideration for the acquisition was $4,900,000. After the acquisition, the Group holds a 40% direct interest in Aroroy Resources Inc (30 June 2011: 20.5%) and 64% indirect interest in Masminero Resources Corporation (30 June 2011: 32.8%)

During the period, the Group provided advances totaling $5,755,774 to Filminera Corporation to fund exploration activities.

13. TRADE AND OTHER RECEIVABLES

   
  Consolidated
  31 December
2011
30 June
2011
  US$ US$
(Current)    
VAT and GST 49,164 43,710
Other debtors 5,052,667 660,581
  5,101,831 704,291

Trade and other receivables are non-interest bearing and generally on 30-90 day terms. Included in Other Debtors is an amount of $2,363,481 as a receivable from the Company's insurer to compensate for the costs incurred to repair the SAG Mill.  There are no receivables past due or impaired. It is expected that these receivables will be received when due.

14. COMMITMENTS

   
  Consolidated
  31 December
2011
30 June
2011
  US$ US$
Operating lease commitments - Group as lessee    
Due within 1 year 369,014 167,184
After one year but no more than five years 707,277 -
Aggregate lease expenditure contracted for at balance date but not provided for 1,076,291 167,184
The operating lease relates to the rental of office premises.    
     
Finance lease commitments - Group as lessee    
Due within 1 year 7,329,752 7,336,668
After one year but no more than five years 21,738,018 24,226,509
Total commitment for finance leases 29,067,770 31,563,177
Less: Future interest expense 5,625,428 6,040,643
Net Lease Liabilities 23,442,342 25,552,534
     
Other commitments    
(a) Mining services commitments 10,974,000 21,948,000
(b) Power services contract commitments 419,995 425,424
(c) Camp Management commitments 86,301 86,301
(d) Laboratory services commitments 205,431 205,431
(e) Other capital commitments 1,526,790 2,434,635
  13,212,517 25,099,791

The Company is party to a mining services contract between Leighton Contractors (Philippines) Limited and Filminera Resources Corporation which has been determined to contain a finance lease. The Company is also party to a contract for the operation of the power station at the Masbate Gold Project. The contract has a 3 month termination notice period. The camp management commitments relate to capital commitments for camp improvements. Laboratory service agreements relate to a month termination notice period on the laboratory services contract.

Under the Ore Purchase Agreement, Philippine Gold Processing & Refining Corporation is contracted to purchase ore from Filminera at cost plus a profit margin.

15. AVAILABLE FOR SALE FINANCIAL ASSETS

   
  Consolidated
  31 December
2011
30 June
2011
  US$ US$
Investments    
Available for sale financial assets 1,855,468 1,855,494
Revaluation of investment at fair value 1,156,028 2,326,209
  3,011,496 4,181,703

The fair value of the available for sale investments has been determined directly by reference to published price quotations in an active market.

16. RELATED PARTY TRANSACTIONS

During the six months ended 31 December 2011, the Company entered into transactions with related parties in the wholly-owned group:

  • loans were advanced on short term inter-company accounts; and
  • loans were received from controlled entities on short term inter-company accounts.

These transactions were undertaken on the following terms and conditions:

  • loans are repayable at call; and
  • no interest is payable on the loans at present.

The Group has entered into an Ore Sales and Purchases agreement with its associate, Filminera Resources Corporation, which requires it to purchase ore mined from the associate's facility on a cost plus basis.  The Group has purchased ore from its associate, pursuant to the agreement during the period amounting to $22,077,623.

The Group has a management services agreement with its associate Ratel Group for the services provided to Ratel Group by the Group.  The total services received by the Group during the period were $200,532.

17. EVENTS SUBSEQUENT TO BALANCE DATE

Subsequent to 31 December 2011, 1,250,000 options have been exercised for gross proceeds of A$812,500. The SAG Mill was brought back online on 25 December 2011 and has resulted in an 82% increase in throughput for the month of January 2012, with throughput now returned to a steady state 6.5mtpa production rate.

18. SEGMENT REPORTING

Identification of reportable segments
For management purposes the group is organized into one business segment which is the Masbate Gold Project in the Philippines. The Masbate Gold Projects primary activity is the extraction and processing of ore for gold sales. The Board is the chief operating decision maker for the segment and monitors the performance of the business segments separately for the purpose of making decisions about resources to be allocated and of assessing performance.

DIRECTORS' DECLARATION

In accordance with a resolution of the directors of CGA Mining Limited, I state that:

In the opinion of the Directors:

   
(a)  the financial statements and notes of the Consolidated Entity for the period ended 31 December 2011 are in accordance with the Corporations Act 2001, including:
     
  (i) giving a true and fair view of the financial position as at 31 December 2011 and the performance for the half-year ended on that date of the Consolidated Entity; and
     
  (ii)  Complying with the Accounting Standards AASB134 "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

(signed)

MICHAEL CARRICK
Director and Chief Executive Officer
Perth, 14 February 2012

SOURCE CGA Mining Limited

For further information:

Australian Contact
President & CEO - Michael Carrick
Tel:+61 8 9263 4000
Fax:+61 8 9263 4020
Email:mcarrick@cgamining.com

US Contact
Independent Chairman - Mark Savage
Tel:+1 505 344 2822
Fax:+1 505 344 2922
Email:marksavage@comcast.net

Organization Profile

CGA Mining Limited

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890