TIDMBKY
RNS Number : 8891O
Berkeley Resources Limited
16 March 2009
BERKELEY RESOURCES LIMITED
abn 40 052 468 569
Financial Report
for the Half Year Ended
31 December 2008
CORPORATE DIRECTORY
+-------------------------------------------------------+---------------------
=--------------------------------+
| Directors
| Share Registry |
| Dr
Robert Hawley - Chairman | Australia
|
| Mr Matthew Syme - Managing Director
| Computershare Investor Services Pty Ltd |
| Mr Scott
Yelland - Chief Operating Officer | Level 2
|
| Dr James Ross
| 45 St George's Terrace |
| Senor Jose Ramon
Esteruelas | Perth WA 6000
|
| Mr Sean James |
Telephone: +61 8 9323 2000 |
|
| Facsimile: +61 8 9323 2033
|
| Company Secretary | United
Kingdom |
| Mr Clint McGhie
| Computershare Investor Services Plc
|
| | PO Box 82
|
| Registered Office
| The Pavillions |
|
Level 9, BGC Centre | Bridgwater Road
|
| 28 The Esplanade
| Bristol BS99 7NH |
| Perth WA
6000 | Telephone: +44 870 889 3105
|
| Telephone: +61 8 9322 6322 |
|
| Facsimile:
+61 8 9322 6558 | Stock Exchange Listing
|
| |
Australia |
| Auditor
| Australian Securities Exchange
|
| Stantons International | Home
Branch - Perth |
|
| 2 The Esplanade
|
| Website | Perth WA
6000 |
| www.berkeleyresources.com.au
| United Kingdom
|
| | London Stock
Exchange - AIM |
| Email
| 10 Paternoster Square
|
| info@berkeleyresources.com.au | London EC4M 7LS
|
|
| |
|
| ASX Code
|
|
| BKY - Fully paid ordinary shares |
|
|
|
| | AIM
TIDM |
|
| BKY - Fully paid ordinary shares
|
+-------------------------------------------------------+------------------
------------------------------------+
+-----------------------------------------------------------+----------------------+
| CONTENTS | |
+-----------------------------------------------------------+----------------------+
| | Page |
+-----------------------------------------------------------+----------------------+
| Directors' Report | 1 |
+-----------------------------------------------------------+----------------------+
| Directors' Declaration | 5 |
+-----------------------------------------------------------+----------------------+
| Condensed Consolidated Income Statement | 6 |
+-----------------------------------------------------------+----------------------+
| Condensed Consolidated Balance Sheet | 7 |
+-----------------------------------------------------------+----------------------+
| Condensed Consolidated Statement of Changes in Equity | 8 |
+-----------------------------------------------------------+----------------------+
| Condensed Consolidated Cash Flow Statement | 9 |
+-----------------------------------------------------------+----------------------+
| Notes to the Financial Statements | 10 |
+-----------------------------------------------------------+----------------------+
DIRECTORS' REPORT
The Board of Directors of Berkeley Resources Limited present their report on the
consolidated entity of Berkeley Resources Limited ("the Company" or "Berkeley
Resources") and the entities it controlled during the half year ended 31
December 2008 ("Consolidated Entity").
DIRECTORS
The names of the Directors of Berkeley Resources in office during the half year
and until the date of this report are:
Dr Robert Hawley
Mr Matthew Syme
Mr Scott Yelland
Dr James Ross
Senor Jose Ramon Esteruelas
Mr Sean James
Unless otherwise disclosed, Directors were in office from the beginning of the
half year until the date of this report.
REVIEW AND RESULTS OF OPERATIONS
Operating Results
Net operating loss after tax attributable to members for the half year ended 31
December 2008 was $4,728,561 (31 December 2007: $5,377,393).
This result included the following significant items:
* exploration costs associated with the Company's Spanish uranium projects of
$3,712,310;
* a non-cash expense of $462,780 in relation to the issue of employee options
(Refer Note 8(b) and Note 11), including the reversal of $38,788 upon the
cancellation of unvested options following cessation of eligible employment.
Review of Operations
During the half year ended 31 December 2008 the Company continued to focus on
exploration activities in the Salamanca and Caceres provinces with the objective
of adding to the existing 16.9mlb of JORC compliant uranium resources at
Retortillo, Santidad and Zona 7.
The Company also reached Agreement with ENUSA Industrias Avanzadas SA, the
Spanish State uranium Company, to undertake a Feasibility Study on and
ultimately, acquire, that Company's uranium mining assets in Salamanca. Further
details of that transaction were included in the Notice of General Meeting sent
to shareholders on 19 December 2008.
Exploration - Salamanca
Work to date suggests that Zona 7 consists of an irregular distribution of
narrow veins and pods of higher grade mineralization, reflecting the interplay
between steeply dipping structures and horizontal weathering. A program of 61
additional RC and diamond holes has significantly extended the mineralization
over a total strike length of 1.2km and whilst closed off to the east, the
deposit is open to the south-west where some of the best intersections have been
recorded. It is possible that Zona 7 will link up with the small Las Carbas
deposit 1.5km to the south which was discovered by Berkeley Resources beneath
Tertiary cover in 2008.
Review of Operations (continued)
Interpretation of magnetics and radiometrics indicated the possible extension of
the Zona 7 corridor to the south and, following anomalous radiometric probing of
a nearby water bore, RC drilling at 200m line spacings has recorded significant
intersections including 10m @ 423ppm U3O8 and 7m @ 1055ppm U3O8 within a
mineralised area of 500m x 50-100m.
Drilling campaigns were completed at the historically mined areas at Cristina
and Caridad with encouraging results. At Caridad, 44 RC and 2 diamond holes were
drilled and identified continuous mineralization over widths of 50-100m.
Although host rocks appear similar to Zona 7, mineralization at Caridad appears
more influenced by folding and deformation, than by cross-cutting features, with
a supergene overprint.
At Cristina a drilling program of 47 RC holes and one diamond hole were drilled
to test three target areas, identified by the 2007 airborne survey. The program
defined mineralization in two zones in the northern target and in both southern
targets.
At the Charcas prospect (to the south of Retortillo), a water bore drilled
through thin Tertiary cover immediately south of the Retortillo deposit
encountered favourable carbonaceous shale lithologies and anomalous down-hole
radiometrics between the quartzite's which define the southern edge of the
Retortillo deposit, and nearby granite. This possible repetition of Retortillo
host rocks points to an untested area 4km in strike length and 0.5km wide.
Exploration - Caceres
An initial JORC compliant inferred resource of 9.2Mlb U3O8, at an average grade
of 371ppm U3O8 (at a 200ppm cut-off), has now been calculated for the Gambuta
deposit in Caceres.
As at Retortillo, the Gambuta mineralization occurs in continuous,
sub-horizontal sheets. It has been defined over an area of about 1,500m by 300m
with a central, higher grade (+0.1% U3O8,) zone, about 100m wide, evident in the
north-western half of the deposit. The main horizon (Zone 1) averages 9.4m in
thickness but reaches a maximum vertical thickness of 40m. Zone 1 occurs at an
average depth of about 18m beneath Tertiary cover and shales, suggesting a low
strip ratio during mining.
At the end of the year Berkeley Resources had estimated total JORC compliant
uranium resources in Spain of 26.1Mlbs U308.
Following a review of the Retortillo geological model by Berkeley Resources and
GRD Minproc (Perth), a diamond drilling program was completed, providing
representative samples of the Retortillo mineralisation for metallurgical and
radiometric testwork. An 800kg sample was shipped to Australia and testwork
started early in January 2009.
In view of the ongoing turmoil in global capital markets and its effect on
funding for junior resource companies, a review of activities and cost
structures was undertaken in late 2008. As a consequence, the Company will
undertake a reduced level of drilling activity until completion of the ENUSA
transaction, when the Feasibility Study will become the focus of most of the
Company's resources.
A review of Berkeley Resources' extensive ground holding position, supported by
ground reconnaissance assessment of both conceptual and known target areas, was
largely completed with the aim of prioritising future exploration and
rationalising holding costs. The results of the study reduced the number of
tenements from 71 to 46, and the associated land holding from 456,902ha to
283,575ha.
With the reduced level of exploration activity, the Company also took steps to
reduce the workforce in Spain, to a level optimised for the ENUSA Feasibility
Study.
Review of Operations (continued)
Miriam-Bouchers Joint Venture
The Company was informed during the period that Sipa Resources Limited ("Sipa")
was withdrawing from its Joint Venture with Berkeley Resources whereby Sipa may
have earned up to a 70% interest in the Miriam-Bouchers Project in Coolgardie,
Western Australia. Following the withdrawal by Sipa, Berkeley Resources
maintains its 100% interest in the project and is currently reviewing this
portfolio of tenements.
CORPORATE
The following material corporate events occurred during or since the end of the
half year ended 31 December 2008:
* On 16 July 2008, the Company advised that it has been chosen by ENUSA Industrias
Avanzadas S.A., the Spanish State uranium Company, as that company's partner to
conduct a feasibility study upon and ultimately develop ENUSA's uranium mining
assets in Salamanca Province, Spain;
* On 18 July 2008, the Company issued 287,500 Unlisted Options to employees in
accordance with the Company's Employee Option Scheme. The options are
exercisable for $1.00 each on or before 19 June 2012. Vesting conditions apply.
In addition, the Company advised that the Board had agreed to issue 250,000
Unlisted Options on the same terms and conditions to Mr Scott Yelland, Chief
Operating Officer and a Director of the Company. These Incentive Options were
subject to Shareholder approval at the Annual General Meeting of Shareholders
and were issued on 19 December 2008;
* On 9 December 2008, the Company advised that it had reached agreement with
ENUSA, to undertake a Feasibility Study on and ultimately, acquire, that
Company's uranium mining assets in Salamanca. The terms of the agreement are
available in detail in the announcement to the ASX and the Notice of General
Meeting of Shareholders held on 19 January 2009; and
* On 19 January 2009, Shareholders approved the acquisition of the ENUSA assets as
initially announced on 9 December 2008.
AUDITOR'S INDEPENDENCE DECLARATION
Section 307C of the Corporations Act 2001 requires our auditors, Stantons
International, to provide the Directors of Berkeley Resources Limited with an
Independence Declaration in relation to the audit of the half year financial
report. This Independence Declaration (available on the Company's website) forms
part of this Directors' Report.
Signed in accordance with a resolution of Directors.
MATTHEW SYME
Managing Director
Perth, 16 March 2009
The information in this report that relates to Exploration Results, Mineral
Resources or Ore Reserves is based on information compiled by Dr James Ross, who
is a Fellow of The Australian Institute of Mining and Metallurgy and a
consultant to Berkeley Resources Limited. Dr Ross has sufficient experience
which is relevant to the style of mineralisation and type of deposit under
consideration and to the activity which he is undertaking to qualify as a
Competent Person as defined in the 2004 Edition of the 'Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Dr Ross
consents to the inclusion in the report of the matters based on his information
in the form and context in which it appears.
In accordance with a resolution of the Directors of Berkeley Resources Limited,
I state that:
In the opinion of the Directors:
(a) the financial statements and notes of the consolidated entity are in
accordance with the Corporations Act 2001, including:
(i) giving a true and fair view of the financial position as at 31 December
2008 and the performance for the half year ended on that date of the
consolidated entity; and
(ii) complying with Accounting Standard AASB 134 Interim Financial Reporting
and the Corporations Regulations 2001; and
(b) there are reasonable grounds to believe that the Company will be able to
pay its debts as and when they become due and payable.
On behalf of the Board
MATTHEW SYME
Managing Director
Perth, 16 March 2009
CONDENSED CONSOLIDATED INCOME STATEMENT
FOR THE HALF YEAR ENDED 31 DECEMBER 2008
+-----------------------------------------------+-------+---------------------------+---------------------------+
| | Note | Half Year Ended | Half Year Ended |
| | | 31 December 2008 | 31 December 2007 |
| | | $ | $ |
+-----------------------------------------------+-------+---------------------------+---------------------------+
+------------------------------------+------+--------------------+--------------------+
| | | | |
+------------------------------------+------+--------------------+--------------------+
| | | | |
+------------------------------------+------+--------------------+--------------------+
| Revenue from continuing operations | 5 | 515,644 | 743,813 |
+------------------------------------+------+--------------------+--------------------+
| | | | |
+------------------------------------+------+--------------------+--------------------+
| Administration costs | | (673,522) | (921,924) |
+------------------------------------+------+--------------------+--------------------+
| Business development costs | | (260,044) | (119,005) |
+------------------------------------+------+--------------------+--------------------+
| Exploration costs | | (3,712,310) | (4,458,221) |
+------------------------------------+------+--------------------+--------------------+
| Provision for capitalised | | (137,000) | - |
| exploration expenditure | | | |
+------------------------------------+------+--------------------+--------------------+
| Share based payments expense | | (462,780) | (674,581) |
+------------------------------------+------+--------------------+--------------------+
| | | | |
+------------------------------------+------+--------------------+--------------------+
| Loss before income tax | | (4,730,012) | (5,429,918) |
+------------------------------------+------+--------------------+--------------------+
| | | | |
+------------------------------------+------+--------------------+--------------------+
| Income tax expense | | - | - |
+------------------------------------+------+--------------------+--------------------+
| | | | |
+------------------------------------+------+--------------------+--------------------+
| Loss for the half year | | (4,730,012) | (5,429,918) |
+------------------------------------+------+--------------------+--------------------+
| | | | |
+------------------------------------+------+--------------------+--------------------+
| Loss attributable to minority | | (1,451) | (52,525) |
| interest | | | |
+------------------------------------+------+--------------------+--------------------+
| Loss attributable to members of | | (4,728,561) | (5,377,393) |
| Berkeley Resources Limited | | | |
+------------------------------------+------+--------------------+--------------------+
| | | | |
+------------------------------------+------+--------------------+--------------------+
| Loss for the half year | | (4,730,012) | (5,429,918) |
+------------------------------------+------+--------------------+--------------------+
| | | | |
+------------------------------------+------+--------------------+--------------------+
| | | | |
+------------------------------------+------+--------------------+--------------------+
| Basic earnings per share (cents | | (4.56) | (5.24) |
| per share) | | | |
+------------------------------------+------+--------------------+--------------------+
| | | | |
+------------------------------------+------+--------------------+--------------------+
| Diluted earnings per share (cents | | (4.56) | (5.24) |
| per share) | | | |
+------------------------------------+------+--------------------+--------------------+
The above Consolidated Income Statement should be read in conjunction with the
accompanying notes.
CONDENSED CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2008
+------------------------------------------------+--------+--------------------------+--------------------------+
| | Note | 31 December 2008 | 30 June 2008 |
| | | $ | $ |
+------------------------------------------------+--------+--------------------------+--------------------------+
+------------------------------------+------+--------------------+--------------------+
| | | | |
+------------------------------------+------+--------------------+--------------------+
| | | | |
+------------------------------------+------+--------------------+--------------------+
| ASSETS | | | |
+------------------------------------+------+--------------------+--------------------+
| Current Assets | | | |
+------------------------------------+------+--------------------+--------------------+
| Cash and cash equivalents | | 14,264,437 | 18,171,171 |
+------------------------------------+------+--------------------+--------------------+
| Other financial assets | | 216,505 | - |
+------------------------------------+------+--------------------+--------------------+
| Trade and other receivables | | 890,498 | 1,289,281 |
+------------------------------------+------+--------------------+--------------------+
| Total Current Assets | | 15,371,440 | 19,460,452 |
+------------------------------------+------+--------------------+--------------------+
| Non-current Assets | | | |
+------------------------------------+------+--------------------+--------------------+
| Exploration expenditure | | 5,943,013 | 5,938,391 |
+------------------------------------+------+--------------------+--------------------+
| Property, plant and equipment | | 553,899 | 509,497 |
+------------------------------------+------+--------------------+--------------------+
| Other financial assets | | 32,572 | 119,228 |
+------------------------------------+------+--------------------+--------------------+
| Total Non-current Assets | | 6,529,484 | 6,567,116 |
+------------------------------------+------+--------------------+--------------------+
| | | | |
+------------------------------------+------+--------------------+--------------------+
| TOTAL ASSETS | | 21,900,924 | 26,027,568 |
+------------------------------------+------+--------------------+--------------------+
| | | | |
+------------------------------------+------+--------------------+--------------------+
| LIABILITIES | | | |
+------------------------------------+------+--------------------+--------------------+
| Current Liabilities | | | |
+------------------------------------+------+--------------------+--------------------+
| Trade and other payables | | 670,362 | 978,010 |
+------------------------------------+------+--------------------+--------------------+
| Provisions | | 43,178 | 44,295 |
+------------------------------------+------+--------------------+--------------------+
| Total Current Liabilities | | 713,540 | 1,022,305 |
+------------------------------------+------+--------------------+--------------------+
| | | | |
+------------------------------------+------+--------------------+--------------------+
| TOTAL LIABILITIES | | 713,540 | 1,022,305 |
+------------------------------------+------+--------------------+--------------------+
| | | | |
+------------------------------------+------+--------------------+--------------------+
| NET ASSETS | | 21,187,384 | 25,005,263 |
+------------------------------------+------+--------------------+--------------------+
| | | | |
+------------------------------------+------+--------------------+--------------------+
| EQUITY | | | |
+------------------------------------+------+--------------------+--------------------+
| Issued capital | 7 | 41,444,842 | 41,444,842 |
+------------------------------------+------+--------------------+--------------------+
| Reserves | 8 | 2,963,882 | 4,449,269 |
+------------------------------------+------+--------------------+--------------------+
| Accumulated losses | | (23,221,340) | (20,890,335) |
+------------------------------------+------+--------------------+--------------------+
| Parent Interest | | 21,187,384 | 25,003,776 |
+------------------------------------+------+--------------------+--------------------+
| Minority Interest | 6 | - | 1,487 |
+------------------------------------+------+--------------------+--------------------+
| | | | |
+------------------------------------+------+--------------------+--------------------+
| TOTAL EQUITY | | 21,187,384 | 25,005,263 |
+------------------------------------+------+--------------------+--------------------+
The above Consolidated Balance Sheet should be read in conjunction with the
accompanying notes.
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE HALF YEAR ENDED 31 DECEMBER 2008
+------------------------------------+--------------+--------------+----------------+--------------+----------------+---------------+-------------+--------------+
| | Attributable to Equity Holder of the Parent | | | |
+------------------------------------+------------------------------------------------------------------------------+---------------+-------------+--------------+
| | Issued | Option | Foreign | Net | Accumu-lated | Total | Minority | Total Equity |
| | Capital | Premium | Currency | Unrealised | Losses | $ | Interest | $ |
| | $ | Reserve | Translation | Gains | $ | | $ | |
| | | $ | Reserve | Reserve | | | | |
| | | | $ | $ | | | | |
+------------------------------------+--------------+--------------+----------------+--------------+----------------+---------------+-------------+--------------+
| | | | | | | | | |
+------------------------------------+--------------+--------------+----------------+--------------+----------------+---------------+-------------+--------------+
| As at 1 July 2007 | 40,560,013 | 3,482,581 | (21,962) | 1,144,000 | (13,885,879) | 31,278,753 | 77,436 | 31,356,189 |
+------------------------------------+--------------+--------------+----------------+--------------+----------------+---------------+-------------+--------------+
| Net loss for the period | - | - | - | - | (5,377,393) | (5,377,393) | (52,525) | (5,429,918) |
+------------------------------------+--------------+--------------+----------------+--------------+----------------+---------------+-------------+--------------+
| Issue of shares (net of expenses) | 447,044 | - | - | - | - | 447,044 | - | 447,044 |
+------------------------------------+--------------+--------------+----------------+--------------+----------------+---------------+-------------+--------------+
| Exchange differences arising on | - | - | 36,452 | - | - | 36,452 | (24,911) | 11,541 |
| translation of foreign operations | | | | | | | | |
+------------------------------------+--------------+--------------+----------------+--------------+----------------+---------------+-------------+--------------+
| Net unrealised gain on held for | - | - | - | 1,326,000 | - | 1,326,000 | - | 1,326,000 |
| sale financial assets | | | | | | | | |
+------------------------------------+--------------+--------------+----------------+--------------+----------------+---------------+-------------+--------------+
| Exercise of options (net of | 437,000 | (437,000) | - | - | - | - | - | - |
| expenses) | | | | | | | | |
+------------------------------------+--------------+--------------+----------------+--------------+----------------+---------------+-------------+--------------+
| Transfer from reserve | 785 | (785) | - | - | - | - | - | - |
+------------------------------------+--------------+--------------+----------------+--------------+----------------+---------------+-------------+--------------+
| Cost of share based payments | - | 674,581 | - | - | - | 674,581 | - | 674,581 |
+------------------------------------+--------------+--------------+----------------+--------------+----------------+---------------+-------------+--------------+
| As at 31 December 2007 | 41,444,842 | 3,719,377 | 14,490 | 2,470,000 | (19,263,272) | 28,385,437 | - | 28,385,437 |
+------------------------------------+--------------+--------------+----------------+--------------+----------------+---------------+-------------+--------------+
| | | | | | | | | |
+------------------------------------+--------------+--------------+----------------+--------------+----------------+---------------+-------------+--------------+
| As at 1 July 2008 | 41,444,842 | 4,472,973 | (23,704) | - | (20,890,335) | 25,003,776 | 1,487 | 25,005,263 |
+------------------------------------+--------------+--------------+----------------+--------------+----------------+---------------+-------------+--------------+
| Net loss for the period | - | - | - | - | (4,728,561) | (4,728,561) | (1,451) | (4,730,012) |
+------------------------------------+--------------+--------------+----------------+--------------+----------------+---------------+-------------+--------------+
| Exchange differences arising on | - | - | 449,390 | - | - | 449,390 | (36) | 449,354 |
| translation of foreign operations | | | | | | | | |
+------------------------------------+--------------+--------------+----------------+--------------+----------------+---------------+-------------+--------------+
| Expiry of Incentive Options | - | (2,357,250) | - | - | 2,357,250 | - | - | - |
+------------------------------------+--------------+--------------+----------------+--------------+----------------+---------------+-------------+--------------+
| Cancellation of Incentive Options | - | (40,306) | - | - | 40,306 | - | - | - |
| - Vested | | | | | | | | |
+------------------------------------+--------------+--------------+----------------+--------------+----------------+---------------+-------------+--------------+
| Cancellation of Incentive Options | - | (38,788) | - | - | - | (38,788) | - | (38,788) |
| - Unvested | | | | | | | | |
+------------------------------------+--------------+--------------+----------------+--------------+----------------+---------------+-------------+--------------+
| Cost of share based payments | - | 501,567 | - | - | - | 501,567 | - | 501,567 |
+------------------------------------+--------------+--------------+----------------+--------------+----------------+---------------+-------------+--------------+
| As at 31 December 2008 | 41,444,842 | 2,538,196 | 425,686 | - | (23,221,340) | 21,187,384 | - | 21,187,384 |
+------------------------------------+--------------+--------------+----------------+--------------+----------------+---------------+-------------+--------------+
The above Consolidated Statement of Changes in Equity should be read in
conjunction with the accompanying notes.
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
FOR THE HALF YEAR ENDED 31 DECEMBER 2008
+---------------------------------------------------------+--------------------------+--------------------------+
| | Half Year Ended | Half Year Ended |
| | 31 December 2008 | 31 December 2007 |
| | $ | $ |
+---------------------------------------------------------+--------------------------+--------------------------+
+------------------------------------------+-------------------+-------------------+
| | | |
+------------------------------------------+-------------------+-------------------+
| | | |
+------------------------------------------+-------------------+-------------------+
| Cash flows from operating activities | | |
+------------------------------------------+-------------------+-------------------+
| Payments to suppliers and employees | (4,575,424) | (5,477,387) |
+------------------------------------------+-------------------+-------------------+
| Interest received | 618,784 | 743,813 |
+------------------------------------------+-------------------+-------------------+
| | | |
+------------------------------------------+-------------------+-------------------+
| Net cash outflows from operating | (3,956,640) | (4,733,574) |
| activities | | |
+------------------------------------------+-------------------+-------------------+
| | | |
+------------------------------------------+-------------------+-------------------+
| Cash flows from investing activities | | |
+------------------------------------------+-------------------+-------------------+
| Payments for capitalised exploration | (67,592) | (31,871) |
| expenditure | | |
+------------------------------------------+-------------------+-------------------+
| Payments for plant and equipment | (15,087) | (230,164) |
+------------------------------------------+-------------------+-------------------+
| Security deposit | - | (97,417) |
+------------------------------------------+-------------------+-------------------+
| Other financial assets | (90,868) | (8,256) |
+------------------------------------------+-------------------+-------------------+
| Net cash outflow from investing | (173,547) | (367,708) |
| activities | | |
+------------------------------------------+-------------------+-------------------+
| | | |
+------------------------------------------+-------------------+-------------------+
| Cash flows from financing activities | | |
+------------------------------------------+-------------------+-------------------+
| Proceeds from issue of shares | - | 450,000 |
+------------------------------------------+-------------------+-------------------+
| Share issue expenses | - | (2,956) |
+------------------------------------------+-------------------+-------------------+
| Net cash inflow from financing | - | 447,044 |
| activities | | |
+------------------------------------------+-------------------+-------------------+
| | | |
+------------------------------------------+-------------------+-------------------+
| Net decrease in cash and cash | (4,130,187) | (4,654,238) |
| equivalents | | |
+------------------------------------------+-------------------+-------------------+
| | | |
+------------------------------------------+-------------------+-------------------+
| Foreign exchange gain on opening cash | 223,453 | 82,645 |
+------------------------------------------+-------------------+-------------------+
| Cash and cash equivalents at the | 18,171,171 | 25,535,846 |
| beginning of the half year | | |
+------------------------------------------+-------------------+-------------------+
| Cash and cash equivalents at the end of | 14,264,437 | 20,964,253 |
| the half year | | |
+------------------------------------------+-------------------+-------------------+
The above Consolidated Cash Flow Statement should be read in conjunction with
the accompanying notes.
AUDITOR'S REVIEW REPORT
1. REPORTING ENTITY
Berkeley Resources Limited (the "Company") is a company domiciled in Australia.
The interim financial report of the Company is as at and for the six months
ended 31 December 2008.
The annual financial report of the Company as at and for the year ended 30 June
2008 is available upon request from the Company's registered office.
2. STATEMENT OF COMPLIANCE
The interim financial report is a general purpose financial report which has
been prepared in accordance with Accounting Standard AASB 134: Interim Financial
Reporting and the Corporations Act 2001.
This interim financial report does not include all the information of the type
normally included in an annual financial report. Accordingly, this report is to
be read in conjunction with the annual report of Berkeley Resources Limited for
the year ended 30 June 2008 and any public announcements made by Berkeley
Resources Limited during the interim reporting period in accordance with the
continuous disclosure requirements of the Corporations Act 2001.
The financial report has been prepared on a historical basis.
For the purpose of preparing the half year financial report, the half year has
been treated as a discreet reporting period.
3. SIGNIFICANT ACCOUNTING POLICIES
The accounting policies applied by the Company in this interim financial report
are the same as those applied by the Company in its financial report as at and
for the year ended 30 June 2008.
4.SEGMENT INFORMATION
The Consolidated Entity operates in the mineral exploration industry in the
following geographical segments:
+------------------------+--------------+--------------+--------------+--------------+--------------+--------------+
| Geographical Segment | Australia | Spain | Consolidated Entity |
+------------------------+-----------------------------+-----------------------------+-----------------------------+
| | Half Year | Half Year | Half Year | Half Year | Half Year | Half Year |
| | Ended | Ended | Ended | Ended | Ended | Ended |
| | 31 Dec 2008 | 31 Dec 2007 | 31 Dec 2008 | 31 Dec 2007 | 31 Dec 2008 | 31 Dec 2007 |
| | $ | $ | $ | $ | $ | $ |
+------------------------+--------------+--------------+--------------+--------------+--------------+--------------+
+------------------+-----------+-------------+-------------+-------------+-------------+-------------+
| | | | |
+------------------+-------------------------+---------------------------+---------------------------+
| | | | | | | |
+------------------+-----------+-------------+-------------+-------------+-------------+-------------+
| | | | | | | |
+------------------+-----------+-------------+-------------+-------------+-------------+-------------+
| Revenue | | | | | | |
+------------------+-----------+-------------+-------------+-------------+-------------+-------------+
| Other revenues | 515,644 | 743,656 | - | 157 | 515,644 | 743,813 |
+------------------+-----------+-------------+-------------+-------------+-------------+-------------+
| Unallocated | | | | | - | - |
| revenue | | | | | | |
+------------------+-----------+-------------+-------------+-------------+-------------+-------------+
| Total revenue | | | | | 515,644 | 743,813 |
+------------------+-----------+-------------+-------------+-------------+-------------+-------------+
| | | | | | | |
+------------------+-----------+-------------+-------------+-------------+-------------+-------------+
| Results | | | | | | |
+------------------+-----------+-------------+-------------+-------------+-------------+-------------+
| Segment result | (757,658) | (1,462,919) | (3,972,354) | (3,847,544) | (4,730,012) | (5,310,463) |
+------------------+-----------+-------------+-------------+-------------+-------------+-------------+
| Unallocated | | | | | - | (119,455) |
| expenses | | | | | | |
+------------------+-----------+-------------+-------------+-------------+-------------+-------------+
| Loss from | | | | | (4,730,012) | (5,429,918) |
| ordinary | | | | | | |
| activities | | | | | | |
| before income | | | | | | |
| tax expense | | | | | | |
+------------------+-----------+-------------+-------------+-------------+-------------+-------------+
| Income tax | | | | | - | - |
| expense | | | | | | |
+------------------+-----------+-------------+-------------+-------------+-------------+-------------+
| Loss | | | | | 1,451 | 52,525 |
| attributable to | | | | | | |
| outside equity | | | | | | |
| interests | | | | | | |
+------------------+-----------+-------------+-------------+-------------+-------------+-------------+
| Net loss | | | | | (4,728,561) | (5,377,393) |
+------------------+-----------+-------------+-------------+-------------+-------------+-------------+
5. REVENUE FROM CONTINUING OPERATIONS
+------------------------------------------------------------+-----------------------+------------------------+
| | Consolidated | Consolidated |
| | 31 December 2008 | 31 December 2007 |
| | $ | $ |
+------------------------------------------------------------+-----------------------+------------------------+
+---------------------------------------------+-----------------+------------------+
| | | |
+---------------------------------------------+-----------------+------------------+
| | | |
+---------------------------------------------+-----------------+------------------+
| Interest revenue | 515,644 | 743,813 |
+---------------------------------------------+-----------------+------------------+
| | 515,644 | 743,813 |
+---------------------------------------------+-----------------+------------------+
6.MINORITY INTEREST
+------------------------------------------------------------+-----------------------+------------------------+
| | Consolidated | Consolidated |
| | 31 December 2008 | 30 June 2008 |
| | $ | $ |
+------------------------------------------------------------+-----------------------+------------------------+
+---------------------------------------------+-----------------+------------------+
| | | |
+---------------------------------------------+-----------------+------------------+
| Interest in | | |
+---------------------------------------------+-----------------+------------------+
| Capital | 13,586 | 13,586 |
+---------------------------------------------+-----------------+------------------+
| Reserves | (121) | (85) |
+---------------------------------------------+-----------------+------------------+
| Accumulated Losses | (13,465) | (12,014) |
+---------------------------------------------+-----------------+------------------+
| | - | 1,487 |
+---------------------------------------------+-----------------+------------------+
The minorities do not fund any exploration costs and their interests dilute as
the funds advanced by Berkeley Resources Ltd are converted into shares. At 31
December 2008 the minorities share of losses exceed their share of issued
capital and reserves. Minority losses in excess of their share of equity are
allocated to Berkeley Resources Ltd.
7. CONTRIBUTED EQUITY
(a) Issued and Paid Up Capital
+--------------------------------------------------------------+-----------------------+-----------------------+
| | Consolidated | Consolidated |
| | 31 December 2008 | 30 June 2008 |
| | $ | $ |
+--------------------------------------------------------------+-----------------------+-----------------------+
+----------------------------------------------+-----------------+-----------------+
| | | |
+----------------------------------------------+-----------------+-----------------+
| 103,591,695 (30 June 2008: 103,591,695) | 41,444,842 | 41,444,842 |
| fully paid ordinary shares | | |
+----------------------------------------------+-----------------+-----------------+
(b) Movements in Ordinary Share Capital During the Past Six Months Were as
Follows:
There were no movements in Ordinary Share Capital during the six months to 31
December 2008.
8.RESERVES
(a)
+------------------------------------------------------------+-----------------------+------------------------+
| | Consolidated | Consolidated |
| | 31 December 2008 | 30 June 2008 |
| | $ | $ |
+------------------------------------------------------------+-----------------------+------------------------+
+---------------------------------------------+-----------------+------------------+
| | | |
+---------------------------------------------+-----------------+------------------+
| Option Reserve | | |
+---------------------------------------------+-----------------+------------------+
| 10,600,000 (30 June 2008: 10,600,000) $0.70 | 687,546 | 687,546 |
| unlisted options | | |
+---------------------------------------------+-----------------+------------------+
| Nil (30 June 2008: 2,250,000) $1.00 | - | 2,357,250 |
| incentive options | | |
+---------------------------------------------+-----------------+------------------+
| 2,160,000 (30 June 2008: 2,280,000) $1.86 | 1,751,323 | 1,405,017 |
| employee incentive options | | |
+---------------------------------------------+-----------------+------------------+
| 787,500 (30 June 2008: 450,000) $1.00 | 99,327 | 23,160 |
| employee incentive options | | |
+---------------------------------------------+-----------------+------------------+
| | 2,538,196 | 4,472,973 |
+---------------------------------------------+-----------------+------------------+
| | | |
+---------------------------------------------+-----------------+------------------+
| Foreign currency translation reserve | 425,686 | (23,704) |
+---------------------------------------------+-----------------+------------------+
| | 2,963,882 | 4,449,269 |
+---------------------------------------------+-----------------+------------------+
(b) Movements in Options During the Past Six Months Were as Follows:
+------------+--------------------+-------------+-------------+-------------+-------------+-------------+--------------+
| Date | Details | Number of | Number of | Number of | Number of | Deemed | $ |
| | | $0.70 | $1.00 | $1.86 | $1.00 | Grant Value | |
| | | Unlisted | Director | Incentive | Incentive | $ | |
| | | Options | Incentive | Options | Options | | |
| | | | Options | | | | |
+------------+--------------------+-------------+-------------+-------------+-------------+-------------+--------------+
+---------+----------------+------------+-------------+-----------+-----------+----------+-------------+
| 1 Jul | Opening | 10,600,000 | 2,250,000 | 2,280,000 | 450,000 | - | 4,472,973 |
| 08 | Balance | | | | | | |
+---------+----------------+------------+-------------+-----------+-----------+----------+-------------+
| | Expiry of | - | (2,250,000) | - | - | - | (2,357,250) |
| | Options | | | | | | |
+---------+----------------+------------+-------------+-----------+-----------+----------+-------------+
| | Grant to | - | - | - | 287,500 | 0.566 | - |
| | Employees(i) | | | | | | |
+---------+----------------+------------+-------------+-----------+-----------+----------+-------------+
| | Grant to | - | - | - | 250,000 | 0.097 | - |
| | Director(ii) | | | | | | |
+---------+----------------+------------+-------------+-----------+-----------+----------+-------------+
| | Share based | - | - | - | - | - | 501,567 |
| | payments | | | | | | |
| | expense(i)(ii) | | | | | | |
+---------+----------------+------------+-------------+-----------+-----------+----------+-------------+
| | Ceasing to be | | | (120,000) | (200,000) | - | (79,094) |
| | eligible | | | | | | |
| | employees(iii) | | | | | | |
+---------+----------------+------------+-------------+-----------+-----------+----------+-------------+
| 31 Dec | Closing | 10,600,000 | - | 2,160,000 | 787,500 | - | 2,538,196 |
| 08 | Balance | | | | | | |
+---------+----------------+------------+-------------+-----------+-----------+----------+-------------+
(i) Incentive options granted to employees and consultants of the Company
following shareholder approval in accordance with Employee Share Scheme. The
fair value is recognised over the period during which the option holders become
unconditionally entitled to the options (ie the date of vesting of the options),
the latest date for which is 19 June 2011.
(ii) Incentive options granted to a Director of the Company following
shareholder approval. The fair value is recognised over the period during which
the option holder becomes unconditionally entitled to the options (ie the date
of vesting of the options), the latest date for which is 19 June 2011.
8. RESERVES (continued)
(b) Movements in Options During the Past Six Months Were as Follows:
(continued)
(iii) The value of employee options recognised on grant is
reversed/transfered where employees cease to be eligible employees of the
Company.
(c) Foreign Currency Translation Reserve
+------------------------------------------------------------+-----------------------+------------------------+
| | Consolidated | Consolidated |
| | 31 December 2008 | 30 June 2008 |
| | $ | $ |
+------------------------------------------------------------+-----------------------+------------------------+
+---------------------------------------------+-----------------+------------------+
| | | |
+---------------------------------------------+-----------------+------------------+
| Opening Balance | (23,704) | (21,962) |
+---------------------------------------------+-----------------+------------------+
| Translation of foreign operations | 449,390 | (1,742) |
+---------------------------------------------+-----------------+------------------+
| Closing Balance | 425,686 | (23,704) |
+---------------------------------------------+-----------------+------------------+
(d) Net Unrealised Gains Reserve
+------------------------------------------------------------+-----------------------+------------------------+
| | Consolidated | Consolidated |
| | 31 December 2008 | 30 June 2008 |
| | $ | $ |
+------------------------------------------------------------+-----------------------+------------------------+
+---------------------------------------------+-----------------+------------------+
| | | |
+---------------------------------------------+-----------------+------------------+
| Opening Balance | - | 1,144,000 |
+---------------------------------------------+-----------------+------------------+
| Unrealised gain on available for sale | - | (1,144,000) |
| financial assets | | |
+---------------------------------------------+-----------------+------------------+
| Closing Balance | - | - |
+---------------------------------------------+-----------------+------------------+
9. CONTINGENT LIABILITIES
Since the last annual reporting date, there has been no material change in
contingent liabilities.
10. DIVIDENDS PAID OR PROVIDED FOR
No dividend has been paid or provided for during the half year.
11. SHARE BASED PAYMENTS
On 18 July 2008, 287,500 incentive options were granted to employees of the
Company pursuant to the Employee Option Scheme which has received shareholder
approval. The exercise price of the incentive options is $1.00 each and, subject
to vesting conditions, the options are exercisable on or before 19 June 2012.
The incentive options have been independently valued using the Binomial option
valuation model, taking into account the terms and conditions upon which the
incentive options were granted. The following table lists the inputs to the
model used in determining the value:
11.SHARE BASED PAYMENTS (continued)
Share Price at Grant Date
$0.90
Dividend yield
-
Volatility
85%
Risk-free interest rate
6.38%
Expected life of option
3.923 years
The estimated fair value of each incentive option is $0.566.
On 19 December 2008, 250,000 incentive options were issued to Mr Scott Yelland,
a Director of the Company, following Shareholder approval. The exercise price of
the incentive options is $1.00 each and, subject to vesting conditions, the
options are exercisable on or before 19 June 2012. The incentive options have
been independently valued using the Binomial option valuation model, taking into
account the terms and conditions upon which the incentive options were granted.
The following table lists the inputs to the model used in determining the value:
Share Price at Grant Date
$0.255
Dividend yield
-
Volatility
95%
Risk-free interest rate
3.54%
Expected life of option
3.5 years
The estimated fair value of each incentive option is $0.097.
Following the cessation of eligible employment with the Company, incentive
options previously issued to employees and consultants have been cancelled.
Where these options have yet to vest, the fair value of these options recognised
in previous periods has been removed from the Option Premium Reserve and
reversed in the current period to the income statement. Where options have
vested, the fair value of these options recognised in previous periods has been
removed from the Option Premium Reserve and reversed in retained losses.
During the six months ended 31 December 2008, 120,000 $1.86 Incentive Options
and 200,000 $1.00 Incentive Options were cancelled following cessation of
eligible employment. An amount of $38,788 was reversed through the current
period for options cancelled which were yet to vest and for which an expense had
been recognised in previous periods. An amount of $40,306 was transferred to
retained losses for options cancelled which had previously vested and for which
an expense had been recognised in previous periods.
12. SUBSEQUENT EVENTS AFTER BALANCE DATE
Other than the events below, there were no significant events occurring after
balance date requiring disclosure:
* On 19 January 2009, Shareholders approved the acquisition of the ENUSA assets as
initially announced on 9 December 2008. Key terms of the agreement are as
follows:
* Berkeley Resources will pay ENUSA an initial deposit of EUR5m to acquire ENUSA's
database relating to the assets following approval of the transaction by the
Spanish Council of Ministers.
* Berkeley Resources will undertake a Feasibility Study on mining the ENUSA State
Reserves for processing through the Quercus plant, probably in conjunction with
Berkeley's own resources in Salamanca Province (Salamanca I Project). The Study
will commence upon approval of the transaction by the Spanish Council of
Ministers and is expected to take 18 months to complete.
12. SUBSEQUENT EVENTS AFTER BALANCE DATE (continued)
* Berkeley Resources may then pay ENUSA a further EUR20m to acquire a 90% interest
in a joint venture company owning the ENUSA assets. Up to the time of
commencement of the Feasibility Study ENUSA may choose to retain a 10% free
carry in the joint venture, or it may opt to retain up to 49% contributing
equity, in which case the consideration is reduced accordingly and ENUSA will
fully fund its share of the joint venture.
* ENUSA will retain a 2.5% royalty on production from the State Reserves. ENUSA
will also receive a lease fee for the Quercus plant, representing 2.5% of the
value of uranium produced through the Quercus plant, regardless of source.
* Berkeley Resources will pay 50% of the maintenance costs of the plant over the
Feasibility Study period, up to EUR250,000pa.
* The Joint Venture company will assume environmental and rehabilitation
liabilities for any new mining areas and plant additions, as well as its
proportionate share of the overall costs of the existing Quercus plant, based on
its future use of the plant, relative to ENUSA's past utilisation.
Please note the auditors' Independence Declaration and Independent Review Report
can be viewed on the Company's website (www.berkeleyresources.com.au).
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR GIGDXCSBGGCL
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