TIDMAVM
RNS Number : 0358Q
Avocet Mining PLC
01 November 2012
Avocet Mining Unaudited Results for
the Quarter ended 30 September 2012
-- Operational improvements at Inata yield increase in mining volumes of 11%
-- Gold production of 33,067 oz. (Q2 2012: 32,917 oz.) at cash costs US$937 per oz.
(Q2 2012: US$1,006 per oz.)
-- Net cash generated by operating activities lower at US$1.4 million (Q2 2012:
US$20.7 million) due to timing of supplier payments
-- EBITDA of US$6.3 million (Q2 2012: US$8.7 million), as gold inventory reduces by
US$5.6 million over the quarter
-- Cash of US$62.0 million, with external debt reduced to US$11.0 million
-- Results from Inata metallurgical testwork received
-- Anticipated reduction in Inata Mineral Reserves at Inata
makes expansion unlikely in the short term - engineering now
focused on recovery enhancements at existing plant
-- Group total Mineral Resources increased 23% to 7.70 million oz.
KEY FINANCIAL METRICS
Quarter ended Quarter ended Quarter ended Quarter ended
30 September 30 September 30 June 30 June
2012 2011 2012 2011
Period Unaudited Unaudited Unaudited Unaudited
================================= ============== ============== ============== ==============
Gold production (ounces) 33,067 33,256 32,917 39,423
================================= ============== ============== ============== ==============
Average realised gold price
(US$/oz.) 1,506 1,316 1,439 1,161
================================= ============== ============== ============== ==============
Cash production costs (US$/oz.) 937 830 1,006 677
================================= ============== ============== ============== ==============
Profit/(loss) before tax
(US$000) (323) (33,540) 2,458 14,862
================================= ============== ============== ============== ==============
Earnings per share (US cents
per share) (0.46) (11.87) 0.81 6.32
================================= ============== ============== ============== ==============
EBITDA(2) (US$000) 6,281 14,952 8,679 16,600
================================= ============== ============== ============== ==============
Net cash generated by operating
activities (US$000) 1,411 2,658 20,717 2,414
================================= ============== ============== ============== ==============
[1] Key Financial Metrics are presented for continuing
operations only, and represent results excluding the Group's former
operations in South East Asia, which were sold in June 2011. Refer
to note 2 of these interim financial statements for further
information.
2 EBITDA represents earnings before exceptional items, finance
items, tax, depreciation and amortisation. EBITDA is not defined by
IFRS but is commonly used as an indication of underlying cash
generation.
David Cather, Chief Executive Officer, commented:
"Our main focus in the third quarter has been driving
operational improvements at Inata. This has begun to bear fruit,
with a noticeable increase in mining volumes in the quarter.
Further operating efficiency gains in both mining and processing
are expected to be achieved in the coming months.
Engineering cost studies on an expansion at Inata have
progressed. The early indications from these studies, as well as
the anticipated reduction in Mineral Reserves are informing our
views on an optimal expansion strategy. Accordingly, our earlier
ambition to expand production through the construction of a second
processing plant appears unlikely in the near term. Instead our
focus has turned to optimising the existing plant, while adding
Mineral Reserves at Souma and elsewhere in the Bélahouro
district."
FOR FURTHER INFORMATION PLEASE CONTACT
Avocet Mining Pelham Bell J.P. Morgan Arctic SEB Enskilda
PLC Pottinger Cazenove Securities Financial
Financial Lead Broker Financial Adviser &
PR Consultants Adviser Market Maker
& Market
Maker
============== ================== ========================== ============ =================
David Cather, Daniel Thöle Michael Wentworth-Stanley Arne Wenger Fredrik Cappelen
CEO Joanna Boon Neil Passmore Petter
Mike Norris, Bakken
FD
Angela Parr,
IR
============== ================== ========================== ============ =================
+44 20 7766 +44 20 7861 +44 20 7588 +47 2101
7676 3232 2828 3100 +47 2100 8500
NOTES TO EDITORS
Avocet Mining is a gold mining and exploration company listed on
the London Stock Exchange (ticker: AVM.L) and the Oslo Børs
(ticker: AVM.OL). The Company's principal activities are gold
mining and exploration in West Africa.
In Burkina Faso the Company owns 90% of the Inata Gold Mine. The
deposit at Inata currently comprises a Mineral Resource of 3.99
million ounces and a Mineral Reserve of 1.85 million ounces. The
Inata Gold Mine poured its first gold in December 2009 and produced
167,000 ounces of gold in 2011 and is expected to produce 135,000 -
140,000 ounces of gold in 2012.
Other assets in Burkina Faso include eight exploration permits
surrounding the Inata Gold Mine in the broader Bélahouro region.
The most advanced of these projects are Souma, some 20 kilometres
from the Inata Gold Mine, and Filio, adjacent to the mine licence
area, where Mineral Resources of 0.56 million ounces and 0.14
million ounces respectively exist.
In Guinea, Avocet owns twelve exploration licences in the north
east of the country. Mineral Resource development has been ongoing
since 2005 and the project at Tri-K is the most advanced. Within
the Tri-K project, Koulékoun has a Mineral Resource of 2.15 million
ounces and Kodiéran of 0.87 million ounces.
CHIEF EXECUTIVE OFFICER'S REVIEW
We made some encouraging operational improvements at Inata
during the third quarter, with our new management team working
effectively with consultants Alexander Proudfoot. Mining
operations, which underperformed earlier in the year due to a
combination of poor equipment availability and sub-optimal
operating practices, achieved an increase in average daily volumes
of 11%. The challenge now is to achieve and exceed this level on a
consistent basis into 2013.
The metallurgical testwork associated with the Inata expansion
scoping study has yielded extensive results. This testwork involved
the taking of 5,000 samples from across the ore body which were
analysed for PRI (Preg Robbing Index), Quick Leach Test, sulphurs,
carbon and a suite of other minerals. Analysis of this data has
been used to generate block models of the various geological and
metallurgical parameters across the ore body.
The metallurgical testwork identified two main factors affecting
gold recoveries namely: preg-robbing by active carbonaceous
material and fine grained gold locked up in sulphide ores. The
testwork indicates that there is a significant proportion of the
ore body (50 - 60%) which is regarded as having very low to no
preg-robbing capacity, while less than 3% of the ore body is
considered highly preg-robbing. The testwork also indicates that
processing options identified would achieve acceptable recoveries
for ore with low preg-robbing capacity, with only a minor drop in
recoveries when treating the highly preg-robbing ore. Accordingly a
number of potential processing options have been identified,
developed using conventional techniques that can deliver acceptable
recoveries across the ore body.
The Company is re-estimating its Mineral Reserves at Inata using
current cost levels and the lower forecast metallurgical recoveries
that have been estimated as a result of the metallurgical testwork.
These factors are likely to negatively influence the estimate, with
the result that Mineral Reserves are expected to decrease from the
1.85 million ounces previously announced. Although engineering work
has not yet been completed, the anticipated reduction in Mineral
Reserves indicates that the significant investment that would be
required for a new processing plant is unlikely to provide a
satisfactory return. Accordingly engineering studies are now
focused on optimising operations at the current plant, including
more modest capital expenditure..
The 2011/2012 drilling season was completed in the second
quarter of 2012 and revised Mineral Resource estimates for
operations in Burkina Faso and Guinea were recently announced. At
Bélahouro, Burkina Faso, Mineral Resources increased by 17% to 4.69
million ounces, of which 3.99 million ounces are within the Inata
mine licence area. Infill and step-out drilling is ongoing at Souma
where a Mineral Resource update is anticipated in Q1 2013. The
ongoing evaluation of Souma, that includes metallurgical testwork,
has been prioritised with a view to submitting an application for a
mining licence in 2013.
The Mineral Resources in Guinea also increased, growing 34% to
3.02 million ounces at Koulékoun and Kodiéran in the Tri-K region.
Constructive discussions with the Guinean Government continued
during the quarter and the Ministry of Mines and Geology has
granted Avocet an extension to its Koulékoun exploration licence to
the third quarter of 2013. A revised mining code is widely
anticipated but not yet confirmed. We have commenced the
environmental studies and have started the metallurgical testwork
programme both of which will form part of the feasibility study,
which the decision has been taken to progress.
On 19 September 2012 the second Indonesian civil case brought by
PT Lebong Tandai (PTLT) against Avocet and other parties in April
2012 was dismissed by the South Jakarta District Court, on the
grounds of lack of jurisdiction. PTLT has appealed the District
Court's decision, as it did after the first case was similarly
dismissed in 2011. The Company has no knowledge of when either
appeal may be heard by the High Court of Indonesia.
OPERATIONAL REVIEW
Gold production and cash costs
2012 2011
------------------------- ---------
Q3 Q2 Q1 2012 YTD FY 2011
Ore mined (k tonnes) 559 610 578 1,747 2,494
Waste mined (k tonnes) 7,565 6,689 7,240 21,494 22,707
Total mined (k tonnes) 8,124 7,299 7,818 23,241 25,201
Ore processed (k tonnes) 643 651 608 1,902 2,471
Average head grade (g/t) 1.62 1.82 2.36 1.93 2.26
Process recovery rate 91% 86% 87% 88% 91%
------- ------- ======= --------- --------
Gold Produced (oz.) 33,067 32,917 38,296 104,280 166,744
Cash costs (US$/oz.) Q3 Q2 Q1 2012 YTD FY2011
Mining 374 402 332 367 217
Processing 279 332 283 297 244
Administration 167 145 122 144 139
Royalties 117 127 113 119 93
------- ------- ======= --------- --------
937 1,006 850 927 693
Gold production in the quarter was 33,067 ounces, in line with
the previous quarter. This was ahead of expectations as gold in
circuit was drawn down by 2,630 ounces.
Daily mining volumes improved by some 11% compared with Q2 2012,
as a result of a programme of operating improvement initiatives
implemented in conjunction with Alexander Proudfoot as well as the
commissioning of additional rented equipment in September. These
initiatives included revised haul cycles, operator training
programmes, improved supervisor monitoring, loading optimisation
and a detailed revision of standard operating practices. Total
mining volumes of 8,124,000 tonnes averaged approximately 88,000
tonnes per day across the quarter as a whole, up from 80,000 per
day in Q2 2012. By the quarter end, daily production in excess of
110,000 tonnes was achieved on a number of days. Although a
programme of haul truck maintenance is planned for Q4 2012, efforts
to achieve further volume improvements will continue in the
quarter.
Plant throughput was in line with the previous quarter as plant
availability remained good with only scheduled maintenance and
minor outages. As expected, head grades were lower at 1.62 g/t Au
during the quarter, down 11% compared with Q2 2012. However,
recoveries of 91% were higher than the previous quarter, reflecting
mining of predominantly oxide ore which leaches more easily.
Cash costs were US$937 per ounce in the quarter. Whilst cost
savings were achieved on reagent consumption and operating
efficiency improvements, overall cash costs reduced by lower
maintenance activity and less grade control drilling, both of which
are expected to reverse in Q4 2012. Included in cash costs were
fees paid to Alexander Proudfoot, whose work at Inata will continue
until Q1 2013. Full year production guidance is maintained at
135,000 - 140,000 ounces at a cash cost of US$1,000 to 1,050 per
ounce.
Whilst the political situation in Northern Mali, which is to the
north of the Inata mine, remains unstable Inata has not been
affected by the ongoing unrest.
Exploration
With the advent of the rainy season, little drilling has been
undertaken either in Burkina Faso or in Guinea during the third
quarter. Instead, work focused on analysing the samples collected
during the 2011/2012 field season, and modelling the results. This
work culminated in the Mineral Resource increase of 23% to 7.70
million ounces announced on 25 October. The Company is
re-estimating its Mineral Reserves at Inata using current cost
levels and lower forecast metallurgical recoveries. As highlighted
these factors are likely to negatively influence the Mineral
Reserves estimate.
During the fourth quarter, exploration activities will focus on
completing the drilling at Filio, where a maiden resource was
recently announced, and developing the resources at Souma through
step-out and infill drilling.
FINANCIAL REVIEW
Revenue in the quarter was US$50.1 million, reflecting sales of
33,298 ounces of gold at an average realised price of US$1,506 per
ounce, (including 8,250 ounces into forward contracts at US$950 per
ounce), compared to revenue of US$49.3 million in Q2 2012,
representing 34,218 ounces at an average realised price of US$1,439
per ounce. At the quarter end Avocet's outstanding hedge was
189,750 ounces.
EBITDA for the quarter totalled US$6.3 million, compared with
US$8.7 million in Q2 2012. Although cash costs were lower in the
period, this was offset by adverse movements in both stockpile (as
the mining schedule delivered less ore to the stockpile), and by
gold inventory, which largely reflects the timing of gold pours,
shipments and sales.
Negative working capital movements contributed to net cash from
operating activities being US$1.4 million in the quarter, compared
with US$20.7 million in Q2 2012. In particular, the quarter on
quarter timing of supplier payments accounted for a decrease in
cash flow of US$19.2 million, as the positive movement in Q2 of
US$11.6 million was followed by a negative movement in Q3 of US$7.6
million. However, on a year to date basis, movement in creditors is
US$1.5 million positive, as quarterly movements offset each other.
During Q3, US$8.9 million was invested in capital expenditure, the
bulk of which was on the second tailings facility at Inata, and
only US$4.9 million on exploration.
At the end of the period, the cash balance stood at US$62.0
million, with debt reduced to US$11.0 million, leaving net cash at
US$51.0 million, compared with US$63.4 million at the end of Q2
2012.
As noted in the Company's Interim Results announcement, in
anticipation of Inata's existing project finance facility with
Macquarie Bank being fully repaid by March 2013, discussions are in
progress with various lenders, including Macquarie Bank, with a
view to replacing the existing facility. A new financing facility
would be used for standby and Inata development purposes. The
amount of funding required for Inata development will depend on the
outcome of the ongoing studies outlined above.
OUTLOOK
In view of our encouraging progress, we retain our guidance for
2012 and 2013, and believe that our efforts over the coming months
will re-establish Inata as a strong cash generative operation. In
the meantime, the receipt of the metallurgical testwork along with
initial process flow sheet designs is enabling management and the
Board to evaluate the optimal means by which to further develop
Inata.
DAVID CATHER
Chief Executive Officer
CONDENSED CONSOLIDATED INCOME STATEMENT
For the three months ended 30 September 2012
Three months ended 30 September Three months ended 30
2012 September 2011
Unaudited Unaudited
Note Continuing Discontinued Continuing Discontinued
operations operations(1) Total operations operations Total
============================ ===== ============ =============== ========= ============ ============= =========
US$000 US$000 US$000 US$000 US$000 US$000
Revenue 3 50,146 - 50,146 42,413 - 42,413
Cost of sales 3 (45,689) - (45,689) (32,567) (939) (33,506)
============================ ===== ============ =============== ========= ============ ============= =========
Gross profit/(loss) 4,457 - 4,457 9,846 (939) 8,907
============================ ===== ============ =============== ========= ============ ============= =========
Administrative expenses (3,630) - (3,630) (2,295) - (2,295)
Share based payments (517) - (517) (387) - (387)
============================ ===== ============ =============== ========= ============ ============= =========
Profit/(loss) from
operations 310 - 310 7,164 (939) 6,225
============================ ===== ============ =============== ========= ============ ============= =========
Profit on disposal
of investments 2 - - - - 2,427 2,427
Profit on disposal
of subsidiaries 2 - - - - 12,995 12,995
Restructure of hedge 13 - - - (39,757) - (39,757)
Finance items
Exchange gains 76 - 76 24 - 24
Finance expense (720) - (720) (991) - (991)
Finance income 11 - 11 20 - 20
Net finance items
- discontinued operations - - - - (7) (7)
(Loss)/profit before
taxation (323) - (323) (33,540) 14,476 (19,064)
============================ ===== ============ =============== ========= ============ ============= =========
Analysed as:
(Loss)/profit before
taxation and exceptional
items (323) - (323) 6,217 (946) 5,271
Exceptional items 13 - - - (39,757) 15,422 (24,335)
============================ ===== ============ =============== ========= ============ ============= =========
(Loss)/profit before
taxation (323) - (323) (33,540) 14,476 (19,064)
============================ ===== ============ =============== ========= ============ ============= =========
Taxation (486) - (486) 7,323 - 7,323
(Loss)/profit for
the period (809) - (809) (26,217) 14,476 (11,741)
============================ ===== ============ =============== ========= ============ ============= =========
Attributable to:
Equity shareholders
of the parent company (918) - (918) (23,635) 14,518 (9,117)
Non-controlling interest 109 - 109 (2,582) (42) (2,624)
============================ ===== ============ =============== ========= ============ ============= =========
(809) - (809) (26,217) 14,476 (11,741)
============================ ===== ============ =============== ========= ============ ============= =========
Earnings per share
- basic (cents per
share) 4 (0.46) - (0.46) (11.87) 7.29 (4.58)
- diluted (cents per
share) 4 (0.46) - (0.46) (11.87) 7.17 (4.58)
EBITDA(2) 6,281 - 6,281 14,952 (939) 14,013
============================ ===== ============ =============== ========= ============ ============= =========
(1) During 2011, the Group disposed of all of its trading
subsidiaries which were classified as discontinued
operations. All operations for 2012 are continuing. Refer to note 2 for further information.
(2) EBITDA represents earnings before finance items, taxation,
depreciation and amortisation. EBITDA is not defined by IFRS but is
commonly used as an indication of underlying cash generation.
CONDENSED CONSOLIDATED INCOME STATEMENT
For the nine months ended 30 September 2012
Nine months ended 30 September Nine months ended 30 September
2012 2011 Unaudited
Unaudited
Note Continuing Discontinued Continuing Discontinued
operations operations(1) Total operations operations Total
=========================== ===== ============ =============== ========== ============ ============= ==========
US$000 US$000 US$000 US$000 US$000 US$000
Revenue 3 159,657 - 159,657 142,929 67,236 210,165
Cost of sales 3 (124,430) - (124,430) (106,055) (51,101) (157,156)
=========================== ===== ============ =============== ========== ============ ============= ==========
Gross profit 35,227 - 35,227 36,874 16,135 53,009
=========================== ===== ============ =============== ========== ============ ============= ==========
Administrative expenses (8,950) - (8,950) (7,101) - (7,101)
Share based payments (1,547) - (1,547) (1,053) - (1,053)
=========================== ===== ============ =============== ========== ============ ============= ==========
Profit from operations 24,730 - 24,730 28,720 16,135 44,855
=========================== ===== ============ =============== ========== ============ ============= ==========
Profit on disposal
of investments 7,13 - - - 8,990 2,427 11,417
(Loss)/profit on disposal
of subsidiaries 2,13 - (105) (105) - 85,802 85,802
Restructure of hedge 13 - - - (39,757) - (39,757)
Finance items
Exchange gains/(losses) 440 - 440 (58) - (58)
Finance expense (2,321) - (2,321) (4,023) - (4,023)
Finance income 125 - 125 20 - 20
Net finance items -
discontinued operations - - - - (26) (26)
Profit/(loss) before
taxation 22,974 (105) 22,869 (6,108) 104,338 98,230
=========================== ===== ============ =============== ========== ============ ============= ==========
Analysed as:
Profit before taxation
and exceptional items 22,974 - 22,974 24,659 16,109 40,768
Exceptional items 12 - (105) (105) (30,767) 88,229 57,462
=========================== ===== ============ =============== ========== ============ ============= ==========
Profit/(loss) before
taxation 22,974 (105) 22,869 (6,108) 104,338 98,230
=========================== ===== ============ =============== ========== ============ ============= ==========
Taxation (7,959) - (7,959) 2,721 (2,723) (2)
Profit/(loss) for the
period 15,015 (105) 14,910 (3,387) 101,615 98,228
=========================== ===== ============ =============== ========== ============ ============= ==========
Attributable to:
Equity shareholders
of the parent company 13,290 (105) 13,185 (2,160) 99,448 97,288
Non-controlling interest 1,725 - 1,725 (1,227) 2,167 940
=========================== ===== ============ =============== ========== ============ ============= ==========
15,015 (105) 14,910 (3,387) 101,615 98,228
=========================== ===== ============ =============== ========== ============ ============= ==========
Earnings per share
- basic (cents per
share) 4 6.68 (0.05) 6.63 (1.09) 49.98 48.90
- diluted (cents per
share) 4 6.64 (0.05) 6.59 (1.09) 49.07 48.00
EBITDA(2) 43,061 - 43,061 56,955 16,135 73,090
=========================== ===== ============ =============== ========== ============ ============= ==========
(1) During 2011, the Group disposed of all of its trading
subsidiaries in South East Asia, which were classified as
discontinued operations. All operations for 2012 are continuing. In
Q1 2012 the Group completed the disposal of one of the remaining
exploration assets in South East Asia. Refer to note 2 for further
information.
(2) EBITDA represents earnings before finance items, taxation,
depreciation and amortisation. EBITDA is not defined by IFRS but is
commonly used as an indication of underlying cash generation.
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the three months ended 30 September 2012
Three months ended 30 September Three months ended 30
2012 September 2011
Unaudited Unaudited
============================= ===== ===================================== =======================================
Continuing Discontinued Continuing Discontinued
Note operations operations Total operations operations Total
============================= ===== ============ ============= ======== ============ ============= ==========
US$000 US$000 US$000 US$000 US$000 US$000
(Loss)/profit for
the period (809) - (809) (26,217) 14,476 (11,741)
Revaluation of other
financial assets 7 (172) - (172) - - -
Total comprehensive
income for the period (981) - (981) (26,217) 14,476 (11,741)
Attributable to:
Equity holders of
the parent company (1,090) - (1,090) (23,635) 14,518 (9,117)
Non-controlling
interest 109 - 109 (2,582) (42) (2,624)
============================= ===== ============ ============= ======== ============ ============= ==========
(981) - (981) (26,217) 14,476 (11,741)
============================= ===== ============ ============= ======== ============ ============= ==========
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the nine months ended 30 September 2012
Nine months ended 30 September Nine months ended 30 September
2012 2011
Unaudited Unaudited
============================= ===== ===================================== =======================================
Continuing Discontinued Continuing Discontinued
Note operations operations Total operations operations Total
============================= ===== ============ ============= ======== ============ ============= ==========
US$000 US$000 US$000 US$000 US$000 US$000
Profit/(loss) for
the period 15,015 (105) 14,910 (3,387) 101,615 98,228
Revaluation of other
financial assets 7 (776) - (776) (2,903) - (2,903)
Disposal of other
financial assets - - - (9,725) - (9,725)
Reclassification
of foreign exchange
translation reserve
on disposal of subsidiaries 2 - - - (627) - (627)
============================= ===== ============ ============= ======== ============ ============= ==========
Total comprehensive
income for the period 14,239 (105) 14,134 (16,642) 101,615 84,973
Attributable to:
Equity holders of
the parent company 12,514 (105) 12,409 (15,415) 99,448 84,033
Non-controlling
interest 1,725 - 1,725 (1,227) 2,167 940
============================= ===== ============ ============= ======== ============ ============= ==========
14,239 (105) 14,134 (16,642) 101,615 84,973
============================= ===== ============ ============= ======== ============ ============= ==========
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
At 30 September 2012
30 September 31 December 30 September
2012 2011 2011
Note Unaudited Audited Unaudited
===================================== ===== ============= ============ =============
US$000 US$000 US$000
Non-current assets
Intangible assets 5 50,655 42,390 32,543
Property, plant and equipment 6 270,856 247,954 252,326
Other financial assets 7 1,052 1,828 2,313
Deferred tax assets - - 1,459
===================================== ===== ============= ============ =============
322,563 292,172 288,641
Current assets
Inventories 8 52,820 40,515 40,650
Trade and other receivables 9 27,158 28,529 22,689
Cash and cash equivalents 10 62,043 105,236 120,373
===================================== ===== ============= ============ =============
142,021 174,280 183,712
Assets of disposal group classified
as held for sale 2,3 - 2,085 1,935
Current liabilities
Trade and other payables 29,545 25,544 45,767
Other financial liabilities 11 11,704 24,711 24,000
===================================== ===== ============= ============ =============
41,249 50,255 69,767
Non-current liabilities
Other financial liabilities 11 2,508 8,018 11,000
Deferred tax liabilities 22,525 14,566 6,007
Other liabilities 5,143 5,143 3,737
===================================== ===== ============= ============ =============
30,176 27,727 20,744
Net assets 393,159 390,555 383,777
===================================== ===== ============= ============ =============
Equity
Issued share capital 16,247 16,247 16,247
Share premium 149,915 149,915 149,915
Other reserves 15,411 15,273 15,614
Retained earnings 208,870 208,129 201,772
Total equity attributable to
the parent 390,443 389,564 383,548
Non-controlling interest 2,716 991 229
===================================== ===== ============= ============ =============
Total equity 393,159 390,555 383,777
===================================== ===== ============= ============ =============
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Nine months ended 30 September 2012
=====================================================================================================
Total
attributable
Share Share Other Retained to the Non-controlling Total
capital premium reserves earnings parent interest equity
=============== ======== ======== ========= ========= ============= ================ =========
US$000 US$000 US$000 US$000 US$000 US$000 US$000
At 31 December
2011
(Audited) 16,247 149,915 15,273 208,129 389,564 991 390,555
Profit for the
period - - 13,185 13,185 1,725 14,910
Revaluation
of other
financial
assets - - (776) - (776) - (776)
Total
comprehensive
income for
the
period - - (776) 13,185 12,409 1,725 14,134
=============== ======== ======== ========= ========= ============= ================ =========
Share based
payments - - - 1,942 1,942 - 1,942
Release of
treasury
and own
shares - - 914 (865) 49 - 49
Exercise of
share options - - - (16) (16) - (16)
Final dividend - - - (13,505) (13,505) - (13,505)
=============== ======== ======== ========= ========= ============= ================ =========
At 30
September
2012
(Unaudited) 16,247 149,915 15,411 208,870 390,443 2,716 393,159
=============== ======== ======== ========= ========= ============= ================ =========
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Nine months ended 30 September 2011
====================================================================================================================
Total attributable
Share Share Other Retained to the parent Non-controlling Total
capital premium reserves earnings interest equity
=================== ========== ========= ========== ========== =================== ================ =========
US$000 US$000 US$000 US$000 US$000 US$000 US$000
At 31 December
2010 (Audited) 16,086 144,571 30,632 118,606 309,895 9,344 319,239
Profit for the
period - - - 97,288 97,288 940 98,228
Revaluation of
other financial
assets - - (2,903) - (2,903) - (2,903)
Disposal of other
financial assets - - (9,725) - (9,725) - (9,725)
==================== ========= ========= ========== ========== =================== ================ =========
Reclassification
of foreign
exchange
translation
reserve
on disposal of
subsidiaries - - (627) - (627) - (627)
==================== ========= ========= ========== ========== =================== ================ =========
Total comprehensive
income for the
period - - (13,255) 97,288 84,033 940 84,973
==================== ========= ========= ========== ========== =================== ================ =========
Share based
payments - - - 1,001 1,001 - 1,001
Interim dividend - - - (6,814) (6,814) - (6,814)
Issue of shares
- exercise of
share
options 35 - - - 35 - 35
Issue of shares
- bonuses 75 3,177 - (3,200) 52 - 52
Issue of shares
into EBT 51 2,167 (2,218) - - - -
Purchase of
treasury
shares - - (2,910) - (2,910) - (2,910)
==================== ========= ========= ========== ========== =================== ================ =========
Release of EBT
and treasury
shares - - 1,373 (487) 886 - 886
========= ========= ========== ========== =================== ================ =========
Net exercise of
share options
settled
in cash - - - (2,630) (2,630) - (2,630)
==================== ========= ========= ========== ---------- =================== ================ =========
Non-controlling
interest share
of dividend from
subsidiary - - - - - (2,000) (2,000)
==================== ========= ========= ========== ========== =================== ================ =========
Disposal of
subsidiaries - - - - - (8,055) (8,055)
==================== ========= ========= ========== ========== =================== ================ =========
Transfer
acquisition
reserve - - 1,992 (1,992) - - -
==================== ========= ========= ========== ========== =================== ================ =========
At 30 September
2011 (Unaudited) 16,247 149,915 15,614 201,772 383,548 229 383,777
==================== ========= ========= ========== ========== =================== ================ =========
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
Three months ended 30 September Three months ended 30
2012 September 2011
Unaudited Unaudited
Continuing Discontinued Continuing Discontinued
Note operations operations Total operations operations Total
============================== ===== ============ ============= ========= ============ ============= =========
US$000 US$000 US$000 US$000 US$000 US$000
Cash flows from operating
activities
(Loss)/profit for the
period (809) - (809) (26,217) 14,476 (11,741)
Adjusted for:
Depreciation of non-current
assets 3 5,971 - 5,971 7,788 - 7,788
Share based payments 517 - 517 386 - 386
Taxation in the income
statement 486 - 486 (7,323) - (7,323)
Non-operating items in
the income statement 12 1,796 - 1,796 41,054 (15,423) 25,631
============================== ===== ============ ============= ========= ============ ============= =========
7,961 - 7,961 15,688 (947) 14,741
Movements in working capital
Increase in inventory (111) - (111) (12,783) - (12,783)
Decrease in trade and
other receivables 1,396 - 1,396 4,481 529 5,010
Decrease in trade and
other payables (7,596) - (7,596) (4,198) (1,008) (5,206)
============================== ===== ============ ============= ========= ============ ============= =========
Net cash generated by
operations 1,650 - 1,650 3,188 (1,426) 1,762
Interest received - - - 20 - 20
Interest paid (239) - (239) (550) - (550)
Net cash generated by
operating activities 1,411 - 1,411 2,658 (1,426) 1,232
Cash flows from investing
activities
Payments for property,
plant and equipment 3 (8,876) - (8,876) (18,586) 3 (18,583)
Exploration and evaluation
expenses 3,5 (4,871) - (4,871) (2,796) - (2,796)
Disposal of discontinued
operation, net of cash
disposed of 2 - - - 18,856 - 18,856
Net cash (used in)/generated
by investing activities (13,747) - (13,747) (2,526) 3 (2,523)
============================== ===== ============ ============= ========= ============ ============= =========
Cash flows from financing
activities
Restructure of hedge - - - (39,757) - (39,757)
Settlement of share options
in cash (14) - (14) (2,471) - (2,471)
Purchase of treasury shares - - - (2,910) - (2,910)
Loans repaid 11 (6,000) - (6,000) (6,000) - (6,000)
Dividend - - - (6,505) - (6,505)
Payments in respect of
finance leases (63) - (63) - - -
Net cash used in financing
activities (6,077) - (6,077) (57,643) - (57,643)
============================== ===== ============ ============= ========= ============ ============= =========
Net cash movement (18,413) - (18,413) (57,511) (1,423) (58,934)
Exchange gains/(losses) 76 - 76 23 (9) 14
Transfer of cash not held
for sale 2,3 - - - (1,432) 1,432 -
Total decrease in cash
and cash equivalents (18,337) - (18,337) (58,920) - (58,920)
============================== ===== ============ ============= ========= ============ ============= =========
Cash and cash equivalents
at start of the period 80,380 - 80,380 179,293 - 179,293
============================== ===== ============ ============= ========= ============ ============= =========
Cash and cash equivalents
at end of period 62,043 - 62,043 120,373 - 120,373
============================== ===== ============ ============= ========= ============ ============= =========
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
Nine months ended 30 September Nine months ended 30 September
2012 2011
Unaudited Unaudited
Continuing Discontinued Continuing Discontinued
Note operations operations Total operations operations Total
=============================== ===== ============ ============= ========= ============ ============= =========
US$000 US$000 US$000 US$000 US$000 US$000
Cash flows from operating
activities
Profit/(loss) for the
period 15,015 (105) 14,910 (3,387) 101,615 98,228
Adjusted for:
Depreciation of non-current
assets 6 18,331 - 18,331 28,235 - 28,235
Share based payments 1,547 - 1,547 1,053 - 1,053
Provisions - - - - 574 574
Taxation in the income
statement 7,959 - 7,959 (2,721) 2,723 2
Non-operating items in
the income statement 12 3,746 105 3,851 35,066 (88,404) (53,338)
=============================== ===== ============ ============= ========= ============ ============= =========
46,598 - 46,598 58,246 16,508 74,754
Movements in working capital
(Increase)/decrease in
inventory (12,305) - (12,305) (20,270) 341 (19,929)
Decrease/(increase) in
trade and other receivables 1,055 - 1,055 (6,102) (745) (6,847)
Increase/(decrease) in
trade and other payables 1,460 - 1,460 2,477 (1,256) 1,221
=============================== ===== ============ ============= ========= ============ ============= =========
Net cash generated by
operations 36,808 - 36,808 34,351 14,848 49,199
Interest received 138 - 138 20 17 37
Interest paid (966) - (966) (2,494) - (2,494)
Income tax paid - - - (865) (3,679) (4,544)
=============================== ===== ============ ============= ========= ============ ============= =========
Net cash generated by
operating activities 35,980 - 35,980 31,012 11,186 42,198
Cash flows from investing
activities
Payments for property,
plant and equipment 6 (22,592) - (22,592) (40,582) (881) (41,463)
Deferred consideration
paid - - - - (1,330) (1,330)
Exploration and evaluation
expenses 3,5 (26,907) - (26,907) (22,027) (2,995) (25,022)
Rehabilitation costs - - - - (393) (393)
Disposal of discontinued
operation, net of cash
disposed of 2 1,980 - 1,980 177,007 - 177,007
Net cash received from
disposal of other investments 7 - - - 16,501 - 16,501
=============================== ===== ============ ============= ========= ============ ============= =========
Net cash (used in)/generated
by investing activities (47,519) - (47,519) 130,899 (5,599) 125,300
=============================== ===== ============ ============= ========= ============ ============= =========
Cash flows from financing
activities
Proceeds from issue of
equity shares - - - 35 - 35
Restructure of hedge - - - (39,757) - (39,757)
Settlement of share options
in cash (155) - (155) (2,471) - (2,471)
Purchase of treasury shares - - - (2,910) - (2,910)
Loans repaid 11 (18,000) - (18,000) (43,000) - (43,000)
Dividend (13,166) - (13,166) (6,505) - (6,505)
Payments in respect of
finance leases (434) - (434) - - -
Non-controlling interest
share of dividend from
subsidiary - - - - (2,000) (2,000)
=============================== ===== ============ ============= ========= ============ ============= =========
Net cash used in financing
activities (31,755) - (31,755) (94,608) (2,000) (96,608)
=============================== ===== ============ ============= ========= ============ ============= =========
Net cash movement (43,294) - (43,294) 67,303 3,587 70,890
Exchange gains/(losses) 101 - 101 206 (246) (40)
Transfer of cash not held
for sale 2,3 - - - 3,341 (3,341) -
Total (decrease)/increase
in cash and cash equivalents (43,193) - (43,193) 70,850 - 70,850
=============================== ===== ============ ============= ========= ============ ============= =========
Cash and cash equivalents
at start of the period 105,236 - 105,236 49,523 - 49,523
=============================== ===== ============ ============= ========= ============ ============= =========
Cash and cash equivalents
at end of period 62,043 - 62,043 120,373 - 120,373
=============================== ===== ============ ============= ========= ============ ============= =========
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
1. Basis of preparation
The condensed consolidated interim financial statements, which
are unaudited, have been prepared in accordance with the
requirements of International Accounting Standard 34 as adopted for
use in the European Union. This condensed interim report does not
include all the notes of the type normally included in an annual
financial report. Accordingly, this condensed report is to be read
in conjunction with the Annual Report for the year ended 31
December 2011, which has been prepared in accordance with IFRS as
adopted by the European Union, and any public announcements made by
the Group during the interim reporting period.
The financial information set out in this interim report does
not constitute statutory accounts as defined in Section 435 of the
Companies Act 2006. The unaudited condensed financial statements
for the three and nine months ended 30 September 2012 have been
drawn up using accounting policies and presentation expected to be
adopted in the Group's full financial statements for the year
ending 31 December 2012, which are not expected to be significantly
different to those set out in note 1 to the Group's audited
financial statements for the year ended 31 December 2011.
The Company's statutory financial statements for the year ended
31 December 2011 are available on the Company's website
www.avocetmining.com. The auditor's report on those financial
statements was unqualified and did not contain a statement under
sections 498(2) or (3) of the Companies Act 2006.
After review of the Group's operations, the directors have a
reasonable expectation that the Group has adequate resources to
continue in operational existence for the foreseeable future.
Accordingly, the directors continue to adopt the going concern
basis in preparing the unaudited condensed interim financial
statements.
2. Disposal group classified as held for sale and discontinued operations
On 24 June 2011, Avocet completed the sale of its main South
East Asian assets, namely its 100% interest in the Penjom gold mine
in Malaysia and its 80% interest in PT Avocet Bolaang Mongondow (PT
ABM), which owned the North Lanut mine and Bakan project in North
Sulawesi, Indonesia, for proceeds of US$170 million. In the third
quarter of 2011, Avocet announced that further sales had been
concluded, namely PT Avocet Mining Services, Avocet Mining
(Malaysia) OHQ Sdn. Bhd., its 75% interest in PT Gorontalo
Sejahtera Mining, and its 60% interest in PT Arafura Surya Alam.
The combined gross proceeds for the disposals completed in the
third quarter of 2011 were US$27 million. All of the sales
completed in 2011 were originally announced on 24 December
2010.
In accordance with IFRS 5, Non-current Assets Held for Sale and
Discontinued Operations, all of the assets and liabilities of the
Indonesian and Malaysian operations, apart from cash, were treated
as a disposal group from the date of the announcement of the sale
on 24 December 2010, and were disclosed separately in the statement
of financial position at 31 December 2010 and 31 March 2011, and
the remaining unsold entities were disclosed separately at 30 June
2011, 30 September 2011, and 31 December 2011. As the transaction
was on a cash free debt free basis, the cash held by entities held
for sale was classified as continuing operations rather than
discontinued operations. Prior to the reclassification, management
reviewed the carrying values and recognition of assets and
liabilities respectively, and no adjustments were required to
measure assets and liabilities at the lower of carrying value or
fair value less costs to sell. Since 24 December 2010, the date on
which the criteria for being held for sale were met, no
depreciation was charged in the Group financial statements for the
Malaysian and Indonesian assets, in accordance with IFRS.
In 2011, Avocet completed the sale of PT Arafura Mandiri
Semangat (PT Arafura) and PT Aura Celebes Mandiri (PT ACM) to
Reliance Resources Limited, a company owned by Golden Peaks
Resources Limited (Golden Peaks). Consideration was in the form of
7.9 million Golden Peaks shares, which are classed as available for
sale financial assets and are recognised at fair value at the
reporting date (note 7). Golden Peaks announced that it had changed
its name to Reliance Resources in January 2012. Reliance Resources
is listed on the Toronto Stock Exchange. PT AMS and PT ACM held
non-core exploration projects in Indonesia.
The results of the disposal group are presented separately in
the comparative consolidated income statement and the segmental
analysis, as required by IFRS.
The profit on disposal of the entities sold during 2011 is
presented in full in the annual report for the year ended 31
December 2011.
Completion of one of the last two exploration assets occurred on
16 February 2012 for proceeds of US$2.0 million, resulting in a
loss of US$0.1 million. There are no remaining assets or
liabilities recognised in the Group statement of financial position
in respect of the last remaining South East Asian exploration
company, which the Company no longer expects to sell.
3. Segmental reporting
IFRS 8 requires the disclosure of certain information in respect
of reportable operating segments. One of the criteria for
determining reportable operating segments is the level at which
information is regularly reviewed by the Chief Operating Decision
Maker (CODM) for the purposes of making economic decisions. In the
prior year, this segmental information was presented for the UK and
West Africa as continuing operations, and Malaysia and Indonesia as
discontinued operations. The disposal of Avocet's assets in South
East Asia enabled the strategic refocus of the Group, with the
Inata operating mine and exploration projects in West Africa being
the core focus. To reflect this change, management has reassessed
the segments which should be reported under IFRS 8. In this report,
operating segments for continuing operations are determined as the
UK, West Africa mining operations (which includes exploration
activity within the Inata mine licence area), and West Africa
exploration (which includes exploration projects in Burkina Faso,
Guinea and Mali). Exploration projects are aggregated into the
single reportable segment because the projects are managed by a
single operating division and reported to the CODM on this basis.
Discontinued operations for 2012 represent the disposal of one of
the remaining assets in South East Asia that was subject to the
agreement with J&Partners L.P. (note 2). Comparative periods
have been represented on this basis to allow for a consistent
comparison.
3. Segmental Reporting
West Africa Continuing
For the three months ended mining West Africa operations Discontinued
30 September 2012 UK operations exploration total operations Total
====================================== ======== ============ ============= ============ ============= =========
US$000 US$000 US$000 US$000 US$000 US$000
INCOME STATEMENT
Revenue - 50,146 - 50,146 - 50,146
====================================== ======== ============ ============= ============ ============= =========
Cost of Sales 718 (45,308) (1,099) (45,689) - (45,689)
====================================== ======== ============ ============= ============ ============= =========
Cash production costs:
- mining - (12,355) - (12,355) - (12,355)
- processing - (9,219) - (9,219) - (9,219)
- overheads - (5,521) - (5,521) - (5,521)
- royalties - (3,877) - (3,877) - (3,877)
====================================== ======== ============ ============= ============ ============= =========
- (30,972) - (30,972) - (30,972)
Changes in inventory - (5,662) - (5,662) - (5,662)
Expensed exploration
and other cost of sales (a) 751 (2,736) (1,099) (3,084) - (3,084)
Depreciation and amortisation (b) (33) (5,938) - (5,971) - (5,971)
=============================== ===== ======== ============ ============= ============ ============= =========
Gross profit/(loss) 718 4,838 (1,099) 4,457 - 4,457
Administrative expenses
and share based payments (4,147) - - (4,147) - (4,147)
====================================== ======== ============ ============= ============ ============= =========
(Loss)/profit from
operations (3,429) 4,838 (1,099) 310 - 310
Net finance items 4 (641) 4 (633) - (633)
====================================== ======== ============ ============= ============ ============= =========
(Loss)/profit before
taxation (3,425) 4,197 (1,095) (323) - (323)
Taxation - (486) - (486) - (486)
====================================== ======== ============ ============= ============ ============= =========
(Loss)/profit for the
period (3,425) 3,711 (1,095) (809) - (809)
====================================== ======== ============ ============= ============ ============= =========
Attributable to:
Equity shareholders
of parent company (3,425) 3,602 (1,095) (918) - (918)
====================================== ======== ============ ============= ============ ============= =========
Non-controlling interest - 109 - 109 - 109
(Loss)/profit for the
period (3,425) 3,711 (1,095) (809) - (809)
====================================== ======== ============ ============= ============ ============= =========
EBITDA (c) (3,396) 10,776 (1,099) 6,281 - 6,281
=============================== ===== ======== ============ ============= ============ ============= =========
(a) Other cost of sales represents costs not directly
attributable to production, including exploration expenditure
expensed;
(b) Includes amounts in respect of the amortisation of mine
closure provision at Inata;
(c) EBITDA represents earnings before exceptional items, finance
items, tax, depreciation and amortisation. EBITDA is not defined by
IFRS but is commonly used as an indication of underlying cash
generation.
3. Segmental Reporting (continued)
West Africa Continuing
At 30 September mining West Africa operations Discontinued
2012 UK operations exploration total operations Total
============================= ===== ========= ============ ============= ============ ============= =========
US$000 US$000 US$000 US$000 US$000 US$000
STATEMENT OF FINANCIAL
POSITION
Non-current assets 1,616 271,548 49,399 322,563 - 322,563
Inventories - 52,426 394 52,820 - 52,820
Trade and other
receivables 528 22,481 4,149 27,158 - 27,158
Cash and cash equivalents 13,587 48,140 316 62,043 - 62,043
Total assets 15,731 394,595 54,258 464,584 - 464,584
==================================== ========= ============ ============= ============ ============= =========
Current liabilities (3,085) (35,070) (3,094) (41,249) - (41,249)
Non-current liabilities (430) (29,746) - (30,176) - (30,176)
==================================== ========= ============ ============= ============ ============= =========
Total liabilities (3,515) (64,816) (3,094) (71,425) - (71,425)
==================================== ========= ============ ============= ============ ============= =========
Net assets 12,216 329,779 51,164 393,159 - 393,159
==================================== ========= ============ ============= ============ ============= =========
For the three months West Africa Continuing
ended 30 September mining West Africa operations Discontinued
2012 UK operations exploration total operations Total))
============================= ===== ========= ============ ============= ============ ============= =========
US$000 US$000 US$000 US$000 US$000 US$000
CASH FLOW STATEMENT
(Loss)/profit for
the period (3,425) 3,711 (1,095) (809) - (809)
Adjustments for
non-cash and non-operating
items (d) 546 8,414 (190) 8,770 - 8,770
Movements in working
capital (677) (2,608) (3,026) (6,311) - (6,311)
==================================== ========= ============ ============= ============ ============= =========
Net cash (used in)/
generated by operations (3,556) 9,517 (4,311) 1,650 - 1,650
Net interest paid (4) (235) - (239) - (239)
Purchase of property,
plant and equipment (5) (8,784) (87) (8,876) - (8,876)
Loans repaid - (6,000) - (6,000) - (6,000)
Deferred exploration
expenditure - - (4,871) (4,871) - (4,871)
Other cash movements (e) (25,867) 17,058 8,808 (1) - (1)
============================= ===== ========= ============ ============= ============ ============= =========
Total (decrease)/
increase in cash
and cash equivalents (29,432) 11,556 (461) (18,337) - (18,337)
==================================== ========= ============ ============= ============ ============= =========
(d) Includes depreciation and amortisation, share based
payments, taxation in the income statement, and other non-operating
items in the income statement;
(e) Other cash movements include cash flows from financing
activities, intergroup transfers; and exchange gains or losses.
3. Segmental Reporting (continued)
West Africa Continuing
For the three months ended mining West Africa operations Discontinued
30 September 2011 UK operations exploration total operations Total
====================================== ======== ============ ============= ============ ============= =========
US$000 US$000 US$000 US$000 US$000 US$000
INCOME STATEMENT
Revenue - 42,413 - 42,413 - 42,413
====================================== ======== ============ ============= ============ ============= =========
Cost of Sales 572 (32,093) (1,046) (32,567) (939) (33,506)
====================================== ======== ============ ============= ============ ============= =========
Cash production costs:
- mining - (8,476) - (8,476) - (8,476)
- processing - (10,017) - (10,017) - (10,017)
- overheads - (6,063) - (6,063) - (6,063)
- royalties - (3,040) - (3,040) - (3,040)
====================================== ======== ============ ============= ============ ============= =========
- (27,596) - (27,596) - (27,596)
Changes in inventory - 4,902 - 4,902 - 4,902
Expensed exploration
and other cost of sales (a) 605 (1,644) (1,046) (2,085) (939) (3,024)
Depreciation and amortisation (b) (33) (7,755) - (7,788) - (7,788)
=============================== ===== ======== ============ ============= ============ ============= =========
Gross profit/(loss) 572 10,320 (1,046) 9,846 (939) 8,907
Administrative expenses
and share based payments (2,682) - - (2,682) - (2,682)
====================================== ======== ============ ============= ============ ============= =========
(Loss)/profit from
operations (2,110) 10,320 (1,046) 7,164 (939) 6,225
Profit on disposal
of subsidiaries and
investments - - - - 15,422 15,422
-------------------------------------- -------- ------------ ------------- ------------ ------------- ---------
Restructure of hedge - (39,757) - (39,757) - (39,757)
====================================== ======== ============ ============= ============ ============= =========
Net finance items 37 (984) - (947) (7) (954)
====================================== ======== ============ ============= ============ ============= =========
(Loss)/profit before
taxation (2,073) (30,421) (1,046) (33,540) 14,476 (19,064)
====================================== ======== ============ ============= ============ ============= =========
Analysed as:
------------------------------- ----- -------- ------------ ------------- ------------ ------------- ---------
(Loss)/profit before
tax & exceptional items (2,073) 9,336 (1,046) 6,217 (946) 5,271
-------------------------------------- -------- ------------ ------------- ------------ ------------- ---------
Exceptional items (39,757) - (39,757) 15,422 (24,335)
====================================== ======== ============ ============= ============ ============= =========
(Loss)/profit before
taxation (2,073) (30,421) (1,046) (33,540) 14,476 (19,064)
====================================== ======== ============ ============= ============ ============= =========
Taxation - 7,323 - 7,323 - 7,323
====================================== ======== ============ ============= ============ ============= =========
(Loss)/profit for the
period (2,073) (23,098) (1,046) (26,217) 14,476 (11,741)
====================================== ======== ============ ============= ============ ============= =========
Attributable to:
Equity shareholders
of parent company (2,073) (20,516) (1,046) (23,635) 14,518 (9,117)
-------------------------------------- -------- ------------ ------------- ------------ ------------- ---------
Non-controlling interest - (2,582) - (2,582) (42) (2,624)
(Loss)/profit for the
period (2,073) (23,098) (1,046) (26,217) 14,476 (11,741)
====================================== ======== ============ ============= ============ ============= =========
EBITDA (c) (2,077) 18,075 (1,046) 14,952 (939) 14,013
=============================== ===== ======== ============ ============= ============ ============= =========
(a) Other cost of sales represents costs not directly
attributable to production, including exploration expenditure
expensed;
(b) Includes amounts in respect of the amortisation of mine
closure provision at Inata;
(c) EBITDA represents earnings before exceptional items, finance
items, tax, depreciation and amortisation. EBITDA is not defined by
IFRS but is commonly used as an indication of underlying cash
generation.
3. Segmental Reporting (continued)
West Africa Continuing
mining West Africa operations Discontinued
At 30 September 2011 UK operations exploration total operations Total
============================== ===== ========= ============ ============= ============ ============= =========
US$000 US$000 US$000 US$000 US$000 US$000
STATEMENT OF FINANCIAL
POSITION
Non-current assets 3,926 265,527 19,188 288,641 - 288,641
Inventories - 40,650 - 40,650 - 40,650
Trade and other receivables 3,101 15,357 4,231 22,689 - 22,689
Assets held for cash - - - - 1,935 1,935
Cash and cash equivalents 100,490 19,539 344 120,373 - 120,373
Total assets 107,517 341,073 23,763 472,353 1,935 474,288
===================================== ========= ============ ============= ============ ============= =========
Current liabilities (15,650) (52,724) (1,393) (69,767) - (69,767)
Non-current liabilities (430) (20,314) - (20,744) - (20,744)
Total liabilities (16,080) (73,038) (1,393) (90,511) - (90,511)
Net assets 91,437 268,035 22,370 381,842 1,935 383,777
For the three months West Africa Continuing
ended 30 September mining West Africa operations Discontinued
2011 UK operations exploration total operations Total
US$000 US$000 US$000 US$000 US$000 US$000
CASH FLOW STATEMENT
(Loss)/profit for
the period (2,073) (23,098) (1,046) (26,217) 14,476 (11,741)
Adjustments for non-cash
and non-operating
items (d) 379 41,423 103 41,905 (15,423) 26,482
Movements in working
capital (508) (9,181) (2,811) (12,500) (479) (12,979)
========= ============ ============= ============ ============= =========
Net cash (used in)/
generated by operations (2,202) 9,144 (3,754) 3,188 (1,426) 1,762
Net interest (paid)/received 20 (550) - (530) - (530)
Purchase of property,
plant and equipment - (18,586) - (18,586) 3 (18,583)
Restructure of hedge (39,757) - - (39,757) - (39,757)
Loans repaid - (6,000) - (6,000) - (6,000)
Deferred exploration
expenditure - (809) (1,987) (2,796) - (2,796)
Dividend (6,505) - - (6,505) - (6,505)
Net proceeds from
disposal of discontinued
operations 18,856 - - 18,856 - 18,856
Other cash movements (e) (27,511) 16,700 5,453 (5,358) (9) (5,367)
-----
Reclassification
of cash not held
for sale (f) (1,432) - - (1,432) 1,432 -
========= ============ ============= ============ ============= =========
Total (decrease)/increase
in cash and cash
equivalents (58,531) (101) (288) (58,920) - (58,920)
========= ============ ============= ============ ============= =========
(d) Includes depreciation and amortisation, share based
payments, movement in provisions, taxation in the income statement,
and other non-operating items in the income statement;
(e) Other cash movements include cash flows in respect of the
sale of subsidiaries, deferred consideration paid, cash flows from
financing activities, and exchange gains or losses;
(f) The sale of subsidiaries in South East Asia is for a
debt-free cash-free consideration. Therefore, cash held in
remaining Malaysian and Indonesian subsidiaries at 30 June has been
excluded from held for sales assets, and reported as Group cash in
the consolidated statement of financial position.
3. Segmental Reporting (continued)
West Africa Continuing
For the nine months ended mining West Africa operations Discontinued
30 September 2012 UK operations exploration total operations Total
============ ==========
US$000 US$000 US$000 US$000 US$000 US$000
INCOME STATEMENT
Revenue - 159,657 - 159,657 - 159,657
============ ============ ============ ==========
Cost of Sales 2,576 (122,823) (4,183) (124,430) - (124,430)
============ ============ ============ ==========
Cash production costs:
- mining - (38,287) - (38,287) - (38,287)
- processing - (30,960) - (30,960) - (30,960)
- overheads - (14,995) - (14,995) - (14,995)
- royalties - (12,398) - (12,398) - (12,398)
============ ============ ============ ==========
- (96,640) - (96,640) - (96,640)
Changes in inventory - (596) - (596) - (596)
Expensed exploration
and other cost of
sales (a) 2,675 (7,355) (4,183) (8,863) - (8,863)
Depreciation and amortisation (b) (99) (18,232) - (18,331) - (18,331)
===== ============ ============ ============ ==========
Gross profit/(loss) 2,576 36,834 (4,183) 35,227 - 35,227
Administrative expenses
and share based payments (10,497) - - (10,497) - (10,497)
(Loss)/profit from
operations (7,921) 36,834 (4,183) 24,730 - 24,730
Loss on disposal of
subsidiaries - - - - (105) (105)
Net finance items 433 (2,208) 19 (1,756) - (1,756)
============ ============ ============ ==========
(Loss)/profit before
taxation (7,488) 34,626 (4,164) 22,974 (105) 22,869
Taxation - (7,959) - (7,959) - (7,959)
============ ==========
(Loss)/profit for
the period (7,488) 26,667 (4,164) 15,015 (105) 14,910
============ ==========
Attributable to:
Equity shareholders
of parent company (7,488) 24,942 (4,164) 13,290 (105) 13,185
Non-controlling interest - 1,725 - 1,725 - 1,725
============ ============ ============ ==========
(Loss)/profit for
the period (7,488) 26,667 (4,164) 15,015 (105) 14,910
============ ============ ============ ==========
EBITDA (c) (7,822) 55,066 (4,183) 43,061 - 43,061
===== ============ ============ ============ ==========
(a) Other cost of sales represents costs not directly
attributable to production, including exploration expenditure
expensed;
(b) Includes amounts in respect of the amortisation of mine
closure provisions at Inata;
(c) EBITDA represents earnings before exceptional items, finance
items, tax, depreciation and amortisation. EBITDA is not defined by
IFRS but is commonly used as an indication of underlying cash
generation.
3. Segmental Reporting (continued)
West Africa Continuing
For the nine months ended mining West Africa operations Discontinued
30 September 2011 UK operations exploration total operations Total
====================================== ============ ==========
US$000 US$000 US$000 US$000 US$000 US$000
INCOME STATEMENT
Revenue - 142,929 - 142,929 67,236 210,165
====================================== ============ ============ ============ ==========
Cost of Sales 997 (105,679) (1,373) (106,055) (51,101) (157,156)
====================================== ============ ============ ============ ==========
Cash production costs:
- mining - (22,874) - (22,874) (27,336) (50,210)
- processing - (29,246) - (29,246) (12,046) (41,292)
- overheads - (17,558) - (17,558) (4,842) (22,400)
- royalties - (10,198) - (10,198) (2,552) (12,750)
====================================== ============ ============ ============ ==========
- (79,876) - (79,876) (46,776) (126,652)
Changes in inventory - 6,926 - 6,926 (44) 6,882
Expensed exploration
and other cost of sales (a) 1,098 (4,595) (1,373) (4,870) (4,281) (9,151)
Depreciation and amortisation (b) (101) (28,134) - (28,235) - (28,235)
=============================== ===== ============ ============ ============ ==========
Gross profit/(loss) 997 37,250 (1,373) 36,874 16,135 53,009
Administrative expenses
and share based payments (8,154) - - (8,154) - (8,154)
====================================== ============ ==========
(Loss)/profit from
operations (7,157) 37,250 (1,373) 28,720 16,135 44,855
Profit on sale of subsidiaries
and investments - - 8,990 8,990 88,229 97,219
Restructure of hedge - (39,757) - (39,757) - (39,757)
====================================== ============ ============ ============ ==========
Net finance items (655) (3,229) (177) (4,061) (26) (4,087)
====================================== ============ ============ ============ ==========
(Loss)/profit before
taxation (7,812) (5,736) 7,440 (6,108) 104,338 98,230
====================================== ============ ============ ============ ==========
Analysed as:
------------ ----------
(Loss)/profit before
tax & exceptional items (7,812) 34,021 (1,550) 24,659 16,109 40,768
------------ ----------
Exceptional items - (39,757) 8,990 (30,767) 88,229 57,462
============ ==========
(Loss)/profit before
taxation (7,812) (5,736) 7,440 (6,108) 104,338 98,230
============ ==========
Taxation (865) 3,586 - 2,721 (2,723) (2)
====================================== ============ ==========
(Loss)/profit for the
period (8,677) (2,150) 7,440 (3,387) 101,615 98,228
====================================== ============ ==========
Attributable to:
Equity shareholders
of parent company (8,677) (923) 7,440 (2,160) 99,448 97,288
------------ ----------
Non-controlling interest - (1,227) - (1,227) 2,167 940
(Loss)/profit for the
period (8,677) (2,150) 7,440 (3,387) 101,615 98,228
====================================== ============ ============ ============ ==========
EBITDA (c) (7,056) 65,384 (1,373) 56,955 16,135 73,090
=============================== ===== ============ ============ ============ ==========
(a) Other cost of sales represents costs not directly
attributable to production, including exploration expenditure
expensed;
(b) Includes amounts in respect of the amortisation of mine
closure provision at Inata;
(c) EBITDA represents earnings before exceptional items, finance
items, tax, depreciation and amortisation. EBITDA is not defined by
IFRS but is commonly used as an indication of underlying cash
generation.
3. Segmental Reporting (continued)
For the nine months West Africa
ended 30 September mining West Africa Continuing Discontinued
2012 UK operations exploration operations total operations Total
US$000 US$000 US$000 US$000 US$000 US$000
CASH FLOW STATEMENT
(Loss)/profit for the
period (7,488) 26,667 (4,164) 15,015 (105) 14,910
Adjustments for
non-cash and
non-operating items (d) 1,213 30,606 (236) 31,583 105 31,688
Movements in working
capital (4,772) (4,796) (222) (9,790) - (9,790)
Net cash (used in)/
generated by operations (11,047) 52,477 (4,622) 36,808 - 36,808
Net interest
received/(paid) 134 (962) - (828) - (828)
Purchase of property,
plant and equipment (169) (20,557) (1,866) (22,592) - (22,592)
Deferred exploration
expenditure - (367) (26,540) (26,907) - (26,907)
Net proceeds from disposal
of discontinuing
operations 1,980 - - 1,980 - 1,980
Loans repaid - (18,000) - (18,000) - (18,000)
Final dividend (13,166) - - (13,166) - (13,166)
Other cash movements (e) (39,899) 6,834 32,577 (488) - (488)
Total (decrease)/increase
in cash and cash
equivalents (62,167) 19,425 (451) (43,193) - (43,193)
For the nine months West Africa
ended 30 September mining West Africa Continuing Discontinued
2011 UK operations exploration operations total operations Total))
US$000 US$000 US$000 US$000 US$000 US$000
CASH FLOW STATEMENT
(Loss)/profit for the
period (8,677) (2,150) 7,440 (3,387) 101,615 98,228
Adjustments for
non-cash and
non-operating items (d) 617 69,876 (8,860) 61,633 (85,107) (23,474)
Movements in working
capital (3,423) (17,481) (2,991) (23,895) (1,660) (25,555)
Net cash (used in)/
generated by operations (11,483) 50,245 (4,411) 34,351 14,848 49,199
Net interest
(paid)/received (590) (1,884) - (2,474) 17 (2,457)
Net tax paid (865) - - (865) (3,679) (4,544)
Purchase of property,
plant and equipment (9) (40,573) - (40,582) (881) (41,463)
Restructure of hedge (39,757) - - (39,757) - (39,757)
Loans repaid (25,000) (18,000) - (43,000) - (43,000)
Deferred exploration
expenditure - (11,513) (10,514) (22,027) (2,995) (25,022)
Dividend (6,505) - - (6,505) - (6,505)
Net proceeds from disposal
of discontinuing
operations 177,007 - - 177,007 - 177,007
Net cash received from
disposal of other
investments - - 16,501 16,501 - 16,501
Non-controlling interest
share of dividend from
subsidiary - - - - (2,000) (2,000)
Other cash movements (e) (26,192) 23,864 (2,812) (5,140) (1,969) (7,109)
Reclassification of
cash not held for
sale (f) 3,341 - - 3,341 (3,341) -
Total increase/(decrease)
in cash and cash
equivalents 69,947 2,139 (1,236) 70,850 - 70,850
(d) Includes depreciation and amortisation, share based
payments, movement in provisions, taxation in the income statement,
and other non-operating items in the income statement;
(e) Other cash movements include deferred consideration paid,
cash flows from financing activities, and exchange gains or
losses;
(f) The sale of subsidiaries in South East Asia was for a
debt-free cash-free consideration. Therefore, cash held in
remaining Malaysian and Indonesian subsidiaries at 30 June 2011 has
been excluded from held for sales assets, and reported as Group
cash in the consolidated statement of financial position.
4. Earnings per Share
Earnings per share are analysed in the table below, presenting
earnings per share for continuing and discontinued operations.
30 September 30 September 30 September 30 September
2012 (three 2011 (three 2012 (nine 2011 (nine
months) months) months) months)
Unaudited Unaudited Unaudited Unaudited
============= =============
Shares Shares Shares Shares
Weighted average number of shares
in issue for the period
- number of shares with voting
rights 199,104,701 199,077,172 199,004,219 198,955,805
- effect of share options in
issue 6,915 3,419,163 1,212,506 3,720,090
============= =============
- total used in calculation of
diluted earnings per share 199,111,616 202,496,335 200,216,725 202,675,895
============= =============
US$000 US$000 US$000 US$000
Earnings per share from continuing
operations
(Loss)/profit for the period
from continuing operations (809) (26,217) 15,015 (3,387)
Less non-controlling interest (109) 2,582 (1,725) 1,227
============= =============
(Loss)/profit for the period
attributable to equity shareholders
of the parent (918) (23,635) 13,290 (2,160)
============= =============
(Loss)/earnings per share
- basic (cents per share) (0.46) (11.87) 6.68 (1.09)
- diluted (cents per share) (0.46) (11.87) 6.64 (1.09)
============= =============
Earnings per share from discontinued
operations
Profit/(loss) for the period - 14,476 (105) 101,615
Less non-controlling interest - 42 - (2,167)
======= ========
Profit/(loss) for the period
attributable to equity shareholders
of the parent - 14,518 (105) 99,448
======= ========
Earnings/(loss) per share
- basic (cents per share) - 7.29 (0.05) 49.98
- diluted (cents per share) - 7.17 (0.05) 49.07
======= ========
Total (loss)/earnings per share
- basic (cents per share) (0.46) (4.58) 6.63 48.90
- diluted (cents per share) (0.46) (4.58) 6.59 48.00
======= ======
5. Intangible assets
Intangible assets represent deferred exploration expenditure.
The movement in the period is analysed below:
30 September 31 December 30 September
2012 2011 2011
(9 months) (12 months) (9 months)
US$000 US$000 US$000
At 1 January 42,390 11,091 11,091
Additions 27,383 31,874 22,027
Capitalised depreciation(1) 543 - -
Transferred to property, (19,661) - -
plant and equipment(2)
Transferred to disposal
group - (575) (575)
At 30 September 50,655 42,390 32,543
30 September 31 December 30 September
2012 2011 2011
US$000 US$000 US$000
Burkina Faso 28,449 28,525 22,693
Guinea 21,900 13,655 9,697
Mali 306 210 153
Total 50,655 42,390 32,543
6. Property, plant and equipment
Mining property Exploration
and plant property
and plant Office equipment
Nine months ended
30 September 2012 West Africa West Africa UK Total
US$000 US$000 US$000 US$000
Cost
At 1 January 2012 316,028 2,812 952 319,792
Additions 20,557 1,389 169 22,115
Transfer from intangible
exploration assets(2) 18,725 936 - 19,661
At 30 September 2012 355,310 5,137 1,121 361,568
========
Depreciation
At 1 January 2012 71,380 - 458 71,838
Charge for the period 18,232 - 99 18,331
Charge for the period - capitalised(1) - 543 - 543
========
At 30 September2012 89,612 543 557 90,712
========
Net Book Value
At 30 September 2012 265,698 4,594 564 270,856
========
At 1 January 2012 244,648 2,812 494 247,954
========
(1) Capitalised depreciation represents the depreciation of
items of property, plant, and equipment which are used exclusively
in the Group's exploration activities. The consumption of these
assets is capitalised as an intangible asset, in accordance with
accounting standards and industry practice.
(2) Transfers from exploration costs of US$18.7 million
represent the cost of increasing the Inata reserve from the level
acquired in 2009 when Avocet acquired Wega Mining. These ounces now
form part of the life of mine plan and the cost will be depreciated
in accordance with the Group accounting policy. In addition to
this, US$0.9 million of property, plant and equipment that is used
in the Group's exploration division has been transferred from
intangible to tangible assets.
7. Other financial assets
30 September 30 September 30 September 30 September
2012 2011 2012 2011
(3 months) (3 months) (9 months) (9 months)
Unaudited Unaudited Unaudited Unaudited
US$000 US$000 US$000 US$000
At 1 January/1 July 1,224 - 1,828 20,293
Additions - 2,313 - 2,313
Disposals - - - (17,390)
Fair value adjustment (172) - (776) (2,903)
At 30 September 1,052 2,313 1,052 2,313
Other financial assets represent available for sale financial
assets which are measured at fair value. The fair value adjustment
is the periodic re-measurement to fair value, with gains or losses
on re-measurement recognised in equity.
Other financial assets relate to shares in Golden Peaks
Resources Limited. The shares were acquired as consideration for
the disposal of two of the Group's assets in South East Asia in
2011 (note 2). In January 2012 Golden Peaks announced that it had
changed its name to Reliance Resources. Reliance Resources is
listed on the Toronto Stock Exchange.
In 2011 Avocet sold its entire holding of shares in Avion Gold
Corp (Avion) for cash consideration of US$16.5 million. The Avion
shares were acquired as consideration for the disposal of the
Houndé group of licences in 2010. On the disposal of the shares,
accumulated gains previously recognised in equity were transferred
to the income statement and recognised in the profit on disposal of
US$8.9 million.
8. Inventories
30 September 31 December 30 September
2012 2011 2011
Unaudited Audited Unaudited
US$000 US$000 US$000
Spare parts and consumables 40,513 27,612 24,919
Work in progress 10,343 12,707 13,786
Finished goods 1,964 196 1,945
52,820 40,515 40,650
Work in progress includes ore in stockpiles and gold in circuit.
Finished goods represents gold in transit or undergoing refinement,
prior to sale.
9. Trade and other receivables
30 September 31 December 30 September
2012 2011 2011
Unaudited Audited Unaudited
US$000 US$000 US$000
Advances to suppliers 8,213 11,151 14,703
VAT 18,037 15,579 7,444
Prepaid expenses 908 1,799 542
27,158 28,529 22,689
10. Cash and cash equivalents
Included in US$62.0 million cash and cash equivalents at 30
September 2012 is US$38.3 million of restricted cash (31 December
2011: US$14.6 million), representing a minimum account balance
held in Macquarie Bank Limited, a condition of the Inata project
finance facility, and US$1.3 million (31 December 2011: US$0.6
million) relating to amounts held on restricted deposit in Burkina
Faso for the purposes of environmental rehabilitation work, as
required by the terms of the Inata mining licence.
11. Other financial liabilities
Other financial liabilities include the remaining balance under
the Inata project finance facility of US$11 million. The facility
is due for repayment at US$6 million per quarter, with the final
remaining balance of US$5 million due on 31 March 2013. Also
included within other financial liabilities are liabilities in
respect of assets held under finance lease, US$0.7 million of which
is included within current financial liabilities, and US$2.5
million is included within non-current financial liabilities.
12. Non-operating items in the income statement
In arriving at net cash flow from operating activities, the
following non-operating items in the income statement have been
adjusted for:
30 September 30 September 30 September 30 September
2012 2011 2012 2011
(three months) (three months) (nine months) (nine months)
Unaudited Unaudited Unaudited Unaudited
US$000 US$000) US$000 US$000
Exchange losses - continuing
operations 1,087 326 1,550 296
Exchange gains - discontinued
operations - (8) - (201)
Finance expense - continuing
operations 720 991 2,321 4,023
Finance income - continuing
operations (11) (20) (125) (20)
Net finance items - discontinued
operations - 7 - 26
Profit on disposal of other
financial assets - - - (8,990)
Profit on disposal of subsidiaries - (12,995) - (85,802)
Restructure of hedge - 39,757 - 39,757
(Profit)/loss on disposal of
investments - (2,427) 105 (2,427)
Non-operating items in the
income statement 1,796 25,631 3,851 (53,338)
13. Exceptional items
30 September 2012 30 September 2011 30 September 2012 30 September 2011
(3 months) (3 months) (9 months) (9 months)
Unaudited Unaudited Unaudited Unaudited
US$000 US$000) US$000 US$000
Profit /(loss) on disposal of subsidiaries - 12,995 (105) 85,802
Restructure of hedge - (39,757) - (39,757)
Profit on disposal of investments - 2,427 - 2,427
Profit on disposal of other financial
assets - - - 8,990
Exceptional (loss)/gain - (24,335) (105) 57,462
Profit on Disposal of Subsidiaries
Profit on disposal of subsidiaries relates to the profit on
disposal of Avocet's South East Asian assets. Further details of
this transaction are included in note 2.
Restructure of Hedge
On 27 July 2011, Avocet announced the restructure of forward
contracts for delivery of gold bullion ("the hedge"). The
restructure consisted of eliminating 58,432 ounces under the
forward contracts at a cost of US$39.8 million and extending the
delivery profile of the remaining ounces by four years to June
2018. The forward contracts are considered to be outside of the
scope of IAS 39, on the basis that they are for own use and gold
produced will continue to be physically delivered to meet the
contractual requirement in future periods, and therefore no value
is reflected in the consolidated financial statements for the
remaining contracts, as allowed by the exemption conferred by IAS
39.5. The restructuring of the contracts, as a response to the
significant change in the Group's production profile following the
disposal of the Penjom Mine and North Lanut, has not changed the
nature or purpose of the contracts, which continue to be held for
own use, nor does it represent a practice of net settlement.
Further details of this transaction were provided in note 25 of the
Annual Report for the year ended 31 December 2011.
Profit/ (loss) on Disposal of Investments
Avocet completed the sale of PT Arafura Mandiri Semangat (PT
Arafura) and PT Aura Celebes Mandiri (PT ACM) to Reliance Resources
Limited, a company owned by Golden Peaks Resources Limited (Golden
Peaks). Consideration was in the form of 7.9 million shares in
Golden Peaks, a company listed on the Toronto Stock Exchange. PT
Arafura and PT ACM held non-core exploration projects in Indonesia,
and were included in the balances of the disposal group held for
sale at 31 December 2010.
Profit on disposal of other financial assets
During 2011, Avocet disposed its entire holding of shares in
Avion Gold Corp ("Avion") for cash consideration of US$16.5
million. The Avion shares were acquired as consideration for the
disposal of the Houndé group of licences in 2010. The shares were
recorded in the balance sheet at fair value, with movements in fair
value recognised in equity, in accordance with IAS39. On the
disposal of the shares, accumulated gains previously recognised in
equity were transferred to the income statement and recognised in
the profit on disposal.
14. Related party transactions
The table below sets out charges in the nine month period and
balances at 30 September 2012 between the Company (Avocet Mining
PLC) and Group companies that were not wholly owned, in respect of
management fees and interest on loans. There were no other related
party transactions in the period requiring disclosure.
Avocet Mining PLC Wega Mining AS
Charged in Balance at Charged in Balance at
nine months 30 September nine months 30 September
2012 2012
US$000 US$000 US$000 US$000
Société des
Mines de Bélahouro
SA (90%) 5,497 139,601 5,481 107,461
Compensation paid to key management of the Group during the
quarter was US$0.8 million, including pension contributions of
US$0.03 million. A share based payment expense of US$0.2 million
was recognised in the quarter in respect of awards made under the
Performance Share Plan, the details of which were reported in the
announcement made on 13 March 2012. No dividends were received by
Directors during the period in respect of shares held in the
Company. There were no dividends received by Directors during the
quarter in respect of shares held in the Company. In the nine
months ended 30 September 2012, Directors received US$0.07 million
in dividends in respect of shares held in the Company.
15. Contingent liabilities
There were no contingent liabilities at 30 September 2012 or 30
September 2011.
In respect of the PT Lebong Tandai ("PT LT") litigation, the
Company can confirm that the second Indonesian civil case brought
by PT LT against Avocet and other parties in April 2012, was
dismissed by the South Jakarta District Court on 19 September 2012.
The Court's reason for dismissing the case was based on the
acknowledgement that the South Jakarta District Court does not have
the jurisdiction to hear the matter. As it did after the first
Indonesian civil case was dismissed in December 2011, PT LT has
appealed the District Court's decision on the second case. The
Company has no knowledge of when either appeal may be heard by the
High Court of Indonesia.
Note 31 to the financial statements for the year ended 31
December 2011 contains a description of the background to this
action, and the reader is therefore referred to the Company's
Annual Report for 2011 for further details.
16. Unaudited quarterly income statement for continuing
operations
Year ended
Quarter ended Quarter ended Quarter ended 31 December
31 March 30 September Year to date
2012 30 June 2012 2012 2012 2011
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited)
US$000 US$000 US$000 US$000 US$000
Revenue 60,256 49,255 50,146 159,657 213,375
Cost of sales (36,007) (42,734) (45,689) (124,430) (156,652)
Cash production
costs:
- mining (12,707) (13,225) (12,355) (38,287) (36,137)
- processing (10,827) (10,914) (9,219) (30,960) (40,644)
- overheads (4,685) (4,789) (5,521) (14,995) (23,232)
- royalties (4,339) (4,182) (3,877) (12,398) (15,515)
(32,558) (33,110) (30,972) (96,640) (115,528)
Changes in inventory 5,163 (97) (5,662) (596) 4,098
Expensed exploration
and other cost of
sales (2,047) (3,732) (3,084) (8,863) (6,202)
Depreciation and
amortisation (6,565) (5,795) (5,971) (18,331) (39,020)
Gross profit 24,249 6,521 4,457 35,227 56,723
Administrative expenses (2,154) (3,166) (3,630) (8,950) (9,657)
Exceptional administrative
expenses - - - - (3,078)
Share based payments (559) (471) (517) (1,547) (1,941)
Profit from operations 21,536 2,884 310 24,730 42,047
Restructure of hedge - - - - (39,757)
Profit on disposal
of investments - - - - 8,990
Finance items
Exchange gains/(losses) 145 219 76 440 (116)
Finance expense (858) (743) (720) (2,321) (4,812)
Finance income 16 98 11 125 125
Profit before taxation 20,839 2,458 (323) 22,974 6,477
Analysed as:
Profit before taxation
and exceptional
items 20,839 2,458 (323) 22,974 40,322
Exceptional items - - - - (33,845)
Profit before taxation 20,839 2,458 (323) 22,974 6,477
Taxation (6,884) (589) (486) (7,959) (7,297)
Profit/(loss) for
the period 13,955 1,869 (809) 15,015 (820)
Attributable to:
Equity shareholders
of the parent company 12,597 1,611 (918) 13,290 (355)
Non-controlling
interest 1,358 258 109 1,725 (465)
13,955 1,869 (809) 15,015 (820)
EBITDA (1) 28,101 8,679 6,281 43,061 84,145
(1) EBITDA represents earnings before exceptional items, finance
items, tax, depreciation and amortisation. EBITDA is not defined by
IFRS but is commonly used as an indication of underlying cash
generation.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR VFLFXLBFFFBQ
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