Consolidated Financial Report
Half -Year Ended 30 June 2002
DIRECTORS' REPORT
Your directors present the financial report of the economic entity for the half-year ended 30 June 2002.
Directors
The names of Directors who held office during or since the end of the half-year are as follows:
Mr. George S. Tahija
Mr. Robert J. Barton (alternate for Mr. George S. Tahija)
Mr. John C. Carlile
Mr. Pieter W. Greeff
Mr. Chris P. Melloy
Mr. Bruce J. Paterson
Review of Operations
During the six-month period to 30 June 2002, the economic entity continued exploration and pre-feasibility activities at the Cibaliung project in Banten. Total project expenditure by the Company to date is approximately $4.67 million (US$ 2.77 million). In accordance with the terms of the Joint Venture Agreement the Company's interest in the Cibaliung Project has increased 72.3% at the end of the period due to sole funding of joint venture expenditure.
The process of liquidating P.T. Eastara Melawi Mineral is continuing.
The Company completed its acquisition of Mt Alexander Goldfields NL ("MAG") on 4 June 2002. MAG is an Australian company with an extensive exploration and mining tenement position which encompasses the whole of the Mt Alexander goldfield in the Castlemaine district of Victoria. In addition to holding 213 square kilometres of exploration licenses, MAG holds 345 hectares of mining licenses and owns an 80,000 tonne per annum CIP plant which is currently under care and maintenance.
The consolidated loss of the economic entity for the period was $419,531 after income tax.
This report is signed in accordance with a resolution of the Board of Directors.
Dated at Sydney, New South Wales, this 12th day of September 2002
(Signed)
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(Signed)
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John Carlile
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Bruce Paterson
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Managing Director & CEO
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Director
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STATEMENT OF FINANCIAL PERFORMANCE
FOR THE HALF-YEAR ENDED 30 JUNE 2002
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30 June 2002
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30 June 2001
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$
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$
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Revenue from ordinary activities
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144,115
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265,563
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Depreciation expense
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(5,646)
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(1,638)
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Employee benefits expense
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(53,883)
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(85,408)
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Borrowings costs expense
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-
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(23,311)
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Administration expense
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(45,103)
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(156,443)
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Other expenses from ordinary activities
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(459,014)
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(311,865)
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Changes in provision
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-
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165,879
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Profit from ordinary activities before income tax expense
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(419,531)
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(147,223)
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Net profit/(loss) attributable to outside equity interests
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-
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-
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Profit from ordinary activities after income tax expense
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(419,531)
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(147,223)
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Net Profit
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(419,531)
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(147,223)
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Basic earnings per share (cents per share)
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(0.11)
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(0.05)
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Diluted earnings per share (cents per share)
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(0.09)
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(0.02)
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The accompanying notes form part of these financial statements
STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2002
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30 June 2002
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31 Dec 2001
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$
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$
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CURRENT ASSETS
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Cash
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6,203,338
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7,155,539
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Receivables
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37,919
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49,328
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Other
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337,645
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309,685
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TOTAL CURRENT ASSETS
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6,578,902
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7,514,552
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NON-CURRENT ASSETS
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Receivables
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-
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6,000
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Property, plant and equipment
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5,517,590
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4,844,140
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TOTAL NON-CURRENT ASSETS
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5,517,590
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4,850,140
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TOTAL ASSETS
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12,096,492
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12,364,692
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CURRENT LIABILITIES
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Accounts payable
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993,316
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1,117,897
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Interest bearing liabilities
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1,019,264
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1,019,264
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Provisions
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250,000
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-
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Other
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66,211
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66,211
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TOTAL CURRENT LIABILITIES
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2,328,791
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2,203,372
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TOTAL LIABILITIES
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2,328,791
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2,203,372
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NET ASSETS
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9,767,701
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10,161,320
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EQUITY
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Contributed equity
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38,896,593
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38,896,593
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(Accumulated losses)
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(29,906,359)
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(29,486,828)
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Austindo Resources Corporation NL interest
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8,990,234
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9,409,765
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Outside equity interests
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777,467
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751,555
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TOTAL EQUITY
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9,767,701
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10,161,320
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The accompanying notes form part of these financial statements
STATEMENT OF CASH FLOWS
FOR THE HALF-YEAR ENDED 30 JUNE 2002
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30 June 2002
$ |
30 June 2001
$ |
Cash flows from operating activities
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Receipts from product sales and related debtors
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-
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-
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Payments to suppliers and employees (inclusive of GST)
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(622,160)
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(1,919,484)
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Interest received
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172,840
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144,579
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Interest paid
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(27,269)
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(38,873)
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Net cash inflow/(outflow) from operating activities
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(476,589)
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(1,813,778)
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Cash flows from investing activities
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Purchase of plant and equipment
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-
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(60,019)
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Proceeds from the sale of plant and equipment
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12,103
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3,153
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Purchase of equity investments
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(300,007)
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-
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Payments for investigating investment opportunities
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(225,742)
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(147,936)
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Net cash (outflow) from investing activities
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(513,646)
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(204,802)
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Cash flows from financing activities
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Payments in respect of capital raisings
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-
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(337,249)
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Payments to former shareholders *
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-
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(59)
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Net cash (outflow) from financing activities
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-
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(337,308)
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Net increase/(decrease) in cash held
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(990,235)
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(2,355,888)
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Cash at beginning of financial period
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7,155,539
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10,760,413
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Net effect of exchange rate changes on cash
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38,034
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119,879
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Cash at the end of the financial period
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6,203,338
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8,524,404
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* Proceeds from the sale of shares in 1994, on behalf of shareholders holding an unmarketable parcel of shares, in accordance with the Constitution.
The accompanying notes form part of these financial statements
NOTES TO THE CONSOLIDATED FINANCIAL REPORT
FOR THE HALF YEAR ENDED 30 JUNE 2002
1. Basis of Preparation of the Accounts
This general purpose half-year consolidated financial report has been made out in accordance with the requirements of the Corporations Act 2001, Accounting Standard AASB 1029: Interim Financial Reporting, Urgent Issues Group Consensus Views and other mandatory professional reporting requirements
It is recommended that this financial report is read in conjunction with the Annual Financial Statements of Austindo Resources Corporation N.L. as at 31 December 2001, together with any public announcements made by Austindo Resources Corporation N.L. during the half-year ended 30 June 2002 in accordance with the continuous disclosure obligations arising under the Corporations Act 2001.
For the purposes of preparing the half-year financial statements, the half-year has been treated as a discrete reporting period.
The economic entity has changed its accounting policy in regard to recognising goodwill on consolidation arising from purchases of equity in mining exploration rights and licences. The economic entity recognises the fair value of the mining rights acquired as mining tenements. This change in acounting policy has had no material effect on the results of the economic entity.
Apart from this change, the accounting policies have been consistently applied by the entities in the economic entity and are consistent with those of the previous financial year and corresponding half-year.
The half year report does not include full disclosures of the type normally included in the annual financial report.
2 Profit From Ordinary Activities
The following revenue and expense items are relevant in explaining the financial performance for the interim period:
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30 June 2002
$ |
30 June 2001
$ |
Interest Revenue
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144,190
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265,563
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Interest Expense
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(28,382)
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(38,873)
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Unrealised Foreign Exchange (Loss)/Gain
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(183,998)
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111,731
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Provision for Goodwill on Consolidation
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-
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165,879
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3. Non Cash Financing Activities
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Interest accrued in respect of convertible notes issued
to PT Austindo Mining Company
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10,303
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13,101
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4 Segment Information
Industrial and Geographical Segments
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Management & Investment - Australia
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Mineral Exploration & Development - Indonesia
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Mineral Exploration & Development - Australia
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Eliminations
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Consolidated Entity
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30 June 2002
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30 June 2002
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30 June 2002
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30 June 2002
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$
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$
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$
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$
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Revenue from Ordinary Activities
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139,747
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4,368
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-
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-
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144,115
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Segment Result
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Profit from ordinary activities before income tax expense
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(233,267)
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(186,264)
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-
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-
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(419,531)
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5. PT Cibaliung Sumberdaya
On 2 November, 1999 Austindo Resources Corporation N.L. entered into a Joint Venture (JV) agreement with International Antam Resources Limited ("IAR"), PT Aneka Tambang (Persero) Tbk and PT Antam Resourcindo (a subsidiary of IAR) to jointly explore and develop the Cibaliung Gold Project in West Java, Indonesia.
In accordance with the joint venture agreement, each party is liable to contribute to the joint venture on an equity basis. IAR has elected not to contribute to the Cibaliung work programme for the year 2002, and as a consequence its interest in Cibaliung has been diluted. The current JV interests are the Company 72.30% (up from 63%) and IAR 27.70% (down from 37%).
At present the project does not meet the company's economic hurdles. Reflecting the potential of the Cibaliung Project, the Board has allocated US$ 720,000 to be spent over the next 12 months at Cibaliung. This program will include drilling to define extensions to the Cikoneng and Cibitung deposits, surface exploration to locate and drill additional targets in the adjacent areas and a review of project parameters and costings.
6. PT Eastara Melaw Mineral - Liquidation
PT Eastara Melawi Mineral (a controlled entity), ceased exploration activities in October 1999, as a commercially viable gold deposit had not been located.
On 9 June 2000 it was resolved that PT Eastara Melawi Mineral be dissolved and that the appropriate steps be taken to terminate the Contract of Work with the Government of the Republic of Indonesia.
On October 24, 2000 the Company applied for the termination of the Contract of Work with the Government of the Republic of Indonesia. The Minister of Mines and Energy approved the termination in his decision letter No. 542 K/20/MEM/2001 dated April 24, 2001 effective from October 24, 2000.
PT Eastara Melawi Mineral is now proceeding to liquidation.
7. Mt Alexander Goldfields NL
The Company acquired 100% of Mt Alexander Goldfields N.L. ("MAG") for a cash consideration of A$300,000 on 4 June 2002.
MAG is an Australian company with an extensive exploration and mining tenement position which encompasses the whole of the Mt Alexander goldfield in the Castlemaine district of Victoria, Australia. In addition to holding 213 square kilometers of exploration licenses, MAG holds 345 hectares of mining licenses and owns an 80,000 tonne per annum CIP plant which is currently under care and maintenance
8. Contingent Liabilities
The Directors are aware of a debenture charge registered under the Corporations Law, in favour of PT Austindo Nusantara Jaya, securing financial accommodation of $900,000 provided by way of Convertible Notes. The debenture charge is in respect of the whole of the undertaking and all of the assets, present and future, of Austindo Resources Corporation NL.
As set out in Note 6, PT Eastara Melawi Mineral (a controlled entity) is proceeding into liquidation. The Directors intend to continue further funding sufficient to enable PT Eastara Melawi Mineral to meet its liabilities until the completion of its liquidation. It is not presently possible to reliably estimate the amount of future funding that may be required.
9. Indonesian Economy
The prospect of prolonged social, political and economic uncertainty in Indonesia remains of some concern to the Company. With senior management based in Indonesia and the involvement of PT Austindo Nusantara Jaya in the management of all operations, the Board of Directors is satisfied that the Company is as well placed as any to deal effectively with this situation. The bulk of the Company’s cash reserves are maintained on deposit within Australia.
10. Matters Subsequent to the End of the Financial Period
Since the end of the financial period, PT Eastara Melawi Mineral restructured its capital and converted debt due to Austindo Resources Corporation NL into equity. Austindo Resources Corporation NL has fully provided for its investment in and loan to PT Eastara Melawi Mineral.
In addition, PT Cibaliung Sumberdaya has increased its issued capital by granting 85,819 shares to Austindo Resources Corporation NL to reflect its increased equity of 71.23% (as at 31 December 2001) in the Cibaliung project in Indonesia in accordance with the terms of the Joint Venture Agreement with International Antam Resources Ltd in respect of this project.
Pursuant to the share sale agreement regarding Mt Alexander Goldfields NL dated 4 June 2002, Austindo Resources Corporation NL had an obligation to replace rehabilitation bonds with the Victorian Department of Natural Resources and Energy in the amount of $117,000. At the date of this report, these bonds have been replaced.
DIRECTORS' DECLARATION
The directors of Austindo Resources Corporation N.L. hereby declare that:
- The financial statements and notes thereto:
(a) Comply with accounting standard AASB1029: Interim Financial Reporting and the
the Corporations Regulations; and
(b) Give a true and fair view of the consolidated entity's financial position as at 30 June
2002 and of its performance for the period ended on that date;
- 2. In the directors' opinion, there are reasonable grounds to believe that Austindo Resources
Corporation N.L. will be able to pay its debts as and when they become due and payable.
Signed in accordance with a resolution of the directors this 12th day of September 2002.
(Signed)
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(Signed)
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John Carlile
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Bruce Paterson
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Managing Director & CEO
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Director
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