RNS Number:8009B
Moto Goldmines Limited
09 August 2007
NEWS RELEASE
FOR IMMEDIATE RELEASE TSX Code - MGL
AUGUST 9, 2007 AIM Code - MOE
ISSUE OF JUNE 30, 2007 INTERIM QUARTER FINANCIAL STATEMENTS AND
MANAGEMENT DISCUSSION AND ANALYSIS
PERTH, WESTERN AUSTRALIA -
Moto Goldmines Limited ("Moto") has today issued consolidated financial
statements and management's discussion and analysis for the interim quarter
ended June 30, 2007. The Management's Discussion and Analysis, and the
Consolidated Balance Sheets, Statements of Operations and Statements of Cash
Flows are included below.
Complete copies of these documents are available on the Company's website
www.motogoldmines.com.
For further information in respect of the Company's activities, please contact:
Klaus Eckhof Mark Arnesen Andrew Dinning
President and CEO Financial Director and Chief Operating Officer
Chief Financial Officer
Tel: (61 8) 9240 1377 Tel: (61 8) 9240 1377 Tel: (61 8) 9240 1377
Email: eckhofk@crcpl.com.au Email: marnesen@motogoldmines.com Email: adinning@motogoldmines.com
Nominated adviser for the purposes of AIM: RFC Corporate Finance Ltd
Contact: Stephen Allen
MOTO GOLDMINES LIMITED
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE QUARTER ENDED JUNE 30, 2007
MOTO GOLDMINES LIMITED
Management's Discussion and Analysis
For the quarter ended June 30, 2007
The following discussion and analysis of the financial position and results of
operations of Moto Goldmines Limited ("Moto" or the "Company") is presented as
of July 31, 2007. The discussion should be read in conjunction with the
Financial Report for the quarter ended June 30, 2007. The Company's consolidated
financial statements have been prepared in accordance with Canadian generally
accepted accounting principles. All amounts in the discussion are in Australian
dollars unless otherwise stated.
Moto Goldmines Limited, is continued under the Business Corporations Act
(British Columbia). The Company has a financial year end of December 31.
Additional information about the Company and its business activities is
available on SEDAR at www.sedar.com.
1. Summary of business activities during the quarter ended June 30, 2007
The Company is a gold exploration and development company listed on the Toronto
Stock Exchange ("TSX") and the AIM Market of the London Stock Exchange ("AIM").
The Company's principal asset is its interest in the Moto Gold Project (details
of which are set out below). The main activities undertaken during the quarter
ended June 30, 2007 were:
* The Bankable Feasibility Study ("BFS") work continued generally to
schedule during the quarter and is expected to be available for internal review
in the second half of 2007, additionally;
- Geological modelling and open pit designs were completed.
- Metallurgical test work was significantly advanced with variability
test work resulting in late stage modifications to the planned flow
sheet.
- Engineering work continued as planned however project estimating
advanced at a slower rate than anticipated due to turn around times in
budget estimates placing pressure on the schedule.
- Site investigation activities were substantially completed including
sterilisation, hydrogeological and geotech drilling, environmental and
hydro power related studies were substantially completed with base
line monitoring on going.
- The project has undergone substantial re-scoping during the BFS stage
due to increased geological resources and material increases in
estimated project costs reflecting the broader construction market and
tightening of suitable resources in Africa. Project through put is
planned to increase with schedules still being finalised at the end of
the quarter.
* Infill and extension drilling during the quarter continued to support
geological modeling and increase confidence levels in inferred resources with
non technical drilling focusing on extension, infill and targets within the
immediate vicinity of the project. Further resource reviews are anticipated in
late 2007.
* 40km of the 160 km road linking the Moto Gold Project to Ugandan
infrastructure has been completed. Advancement of road works has slowed in line
with the wet season with completion still anticipated to be in the first half of
2008.
* The Company continued with its social and community development programs
including major extension works to the local funded clinic, construction of a
new school and rehabilitation of local buildings and infrastructure.
* The Company appointed Mr Louis Watum to the Board of Directors effective
July 2, 2007. Mr Watum is the Executive General Manager - DRC Operations and
commenced with Moto in March 2006.
2. The Moto Gold Project
Overview
The Moto Gold Project is located in the Moto goldfields in the north-east of the
Democratic Republic of Congo ("DRC"), some 560 kms north east of the city of
Kisangani and 150 kms west of the Ugandan border town of Arua. The project
covers an area of approximately 2,350 sq kms. The Moto Gold Project is a joint
venture between L'Office des Mines d'Or de Kilo-Moto ("Okimo")(30%) (non
dilutive), Orgaman sprl ("Orgaman")(10%) and the Company(60%). Okimo is the
state-owned company that is the registered holder of the mineral rights to the
Moto Gold Project. The activities undertaken by the Company and its subsidiaries
(collectively the "Group") during the period have continued to highlight the
world class potential of this previously under explored project.
Tenure
The Company has entered into a joint venture through Border Energy Pty Ltd ("
Border"), a wholly owned subsidiary with the privately owned company Orgaman to
form a number of local operating companies, including Borgakim sprl ("Borgakim
"). Under the terms of this joint venture agreement, the parties have agreed
between themselves that Border will be the operator of the Moto Gold Project.
In November 2006, the Company entered into an agreement ("November 2006 Protocol
") with Okimo to enter into a consolidated contractual arrangement to replace
the existing contracts ("Existing Contracts") that will govern the development
of and future production activities at the Moto Gold Project.
In January 2007, certain of the Company's subsidiaries received letters from the
then Chief Executive Officer of Okimo and now Vice Minister of Mines claiming
certain obligations under the Existing Contracts had not been satisfied and
giving the relevant company sixty or ninety days to rectify matters. No further
notices have been issued to the relevant companies to date. The Company
strongly disputes that it or its subsidiaries have failed to satisfy any
performance criteria under any of the Group's contracts with Okimo. The relevant
cure periods have now lapsed and the Company has had no further correspondence
from Okimo on these alleged breaches.
The Company issued a news release on April 30, 2007 advising that a commission
under the authority of the Minister of Mines of the Democratic Republic of the
Congo (the "Commission") had been formed to review approximately sixty (60)
mining agreements entered into by the Congolese government and that the November
2006 Protocol and the Existing Contracts were included in those mining
agreements to be reviewed. Moto further stated that the Commission was to begin
its review process in mid May and conclude in mid July. The Company issued a
further release on July 12, 2007 stating that the Commission had commenced its
work, had reviewed the OKIMO contracts and had discussions with OKIMO and that
Moto had also made an oral presentation to the Commission. The Company also
stated that it was pressing for a formal announcement of both a timetable for
conclusion of the review and for publication of the results. The Company has
received no update on either item and has become aware of recent press releases
attributed to a member of the Commission stating that the Commission would
conclude its investigations one to two months later than originally envisaged.
Moto's understanding was that the Commission had intended to conclude the
findings of the Commission in August 2007.
In light of the review by the Commission the Company has been unable to progress
the documentation to implement the November 2006 Protocol pending the results of
the Commission being made public.
With the current uncertainties as regards to the timing of the publication of
the Commission's findings, and the consequential delays in Moto being able to
progress the legal documentation implementing the November 2006 Protocol, the
Board is reviewing whether or not to curtail expenditure on the project in order
to conserve cash until there is a clear timetable for progressing the
documentation to implement the November 2006 Protocol.
Exploration
The Company continued soil sampling programmes on a number of untested gold
occurrences and follow up work is planned as a matter of process in respect of
significant gold-in-soil anomalies identified to date in a number of potential
areas.
In November 2006, independent geological consultants, Cube Consulting Pty
Limited ("Cube Consulting"), estimated indicated resources for the Moto Project
of 6.163 million ounces at 2.9 g/t of gold and inferred resources of 12.365
million ounces at 4.0 g/t of gold. Cube Consulting utilized the Australian
standard of resource classifications, JORC, which are equivalent to the CIM
classifications used in Canada. Further resource upgrades are expected during
2007 as new drilling information becomes available and is incorporated into
existing geological models.
Operational Activities
The Company continued with work on the bankable feasibility study ("BFS") which
commenced in October 2006. The principal engineer Lycopodium Engineering Pty Ltd
from Perth, Western Australia (WA) is managing the key elements of and compiling
the BFS. They are working with a team of WA based consultants including Knight
Piesold, Cube Consulting, Ammtech, George Orr & Associates and also Ghana based
SGS for environmental and social studies and Knight Piesold, Vancouver for
Hydropower design.
The BFS progressed generally on schedule and in line with budget expectations
and the Company continues to work towards its completion in the second half of
2007. Most site investigatory work, geological modelling and mine engineering
has been completed and metallurgical test work is in the final stages. Sample
and ore body variability test work has shown inconsistent performance in
recoveries of gold in oxide and transition ore which has resulted in late stage
changes to the process flow sheet and work is ongoing to better define and
understand the impact of these findings.
Since completion of the pre-feasibility study in July 2006, the project has
undergone significant re-scoping as a result of increased ore resources and a
material increase in capital costs. Ore through put rates are planned to
increase with schedules still to be finalised. Capital cost increases will be
material and generally in line with what is being experienced across the
resources and construction sector with a tight supply of skilled labour,
increased cost of materials and generally inelastic engineering and construction
costs. The tightness of the market is also being reflected in the estimating
process where many companies are declining to quote and turn around times are
excessively long.
The Company has continued with the work to prepare the BFS as the Board
considers this to be in the best interests of the Company and its stakeholders,
including Okimo and the DRC Government. Time related to re-scoping and a slow
down in finalising the estimating process may result in some delay, however this
should sit broadly within the forecast schedule. Although uncertainties related
to the title as set out above, including the review by the Commission, have not
significantly delayed the BFS, they have delayed critical path work on site and
this will result in material delays in the commencement of construction
activities and the placement of orders for long lead items which will further
compound any delay.
In the first quarter of 2007, the Company commenced reconstruction works on the
Doko to Aru road, a 160 km section of road linking the Moto Gold Project site to
Ugandan service infrastructure. To date some 40km of road has been completed
with work continuing on the remainder. In addition, during this quarter the
commencement of the rainy season has slowed the progression rate but it is
planned to increase work rates in the dry season to enable completion of the
road in the first half of 2008.
The Company has constructed additional accommodation facilities, messing and
upgraded the regional airstrip. For the local community Moto has commissioned
vector analysis for malaria management, established the status of community
medical facilities and initiated a process to develop medical and para-medical
capability. In conjunction with the ongoing development of community facilities
the Company has expanded the clinic, birthing centre and health care facilities
for the local community at Doko and also built a new clinic and school at the
village of Surur and has continued the ongoing program of rehabilitating local
buildings and infrastructure. Educational programs that have been initiated and
are ongoing include HIV and personal health and hygiene campaigns, mining
industry understanding, building and construction skills development, and on
going work and interaction with local NGO's and women's groups.
3. Selected Financial Information
The table below sets forth selected financial data relating to the Company's
quarter and six month periods ended June 30, 2007 and June 30, 2006. This
financial data is extracted from the Company's unaudited consolidated financial
statements, which are prepared in accordance with Canadian GAAP. All amounts in
the discussion are in Australian dollars unless otherwise stated.
Quarter Six Months
June 30, June 30, June 30, June 30,
2007 2006 2007 2006
A$ A$ A$ A$
Interest Revenue 707,880 826,338 1,452,829 1,071,066
Other Income 9,755 - 9,755 -
Employee and consultants expenses 718,783 201,361 1,284,794 693,588
Amortization and depreciation 174,446 98,192 313,858 166,545
Occupancy 50,592 57,284 98,946 146,110
Shareholders and listing expenses 98,093 288,180 180,247 356,430
Marketing and promotion 240,964 197,055 356,735 465,748
Foreign exchange loss/(gain) 1,157,249 506,989 1,449,114 112,298
Stock based compensation 739,029 5,364,402 1,787,208 5,881,130
Interest expense 919,820 - 1,524,266 -
Other expenses 119,977 90,623 158,191 155,132
Loss for the period 3,501,318 5,977,748 5,690,775 6,905,915
Basic loss per share (cents) 5.6 10.3 9.2 13.2
Weighted ave number of shares outstanding 62,168,052 57,730,630 62,091,294 52,318,494
The Company is at the development stage and has no sales revenue. Expenditure is
funded by equity raisings. As at June 30, 2007 the Company had cash and cash
equivalents of approximately A$42.5 million compared to A$62.3 million at the
December 31, 2006. The reduction in cash is due to the fact the Company has not
raised any new equity since year end, other than through the exercise of
warrants and options issued during that period.
4. Results of Operations
Comparison of the quarters ended June 30, 2007 and June 30, 2006 and comparison
of the six-months ended June 30, 2007 and June 30, 2006
The Company had a net loss for the quarter ended June 30, 2007 of A$3,501,318
compared to a net loss of A$5,977,748 for the quarter ended June 30, 2006. Moto
had a net loss for the six months ended June 30, 2007 of A$5,690,775 compared to
a net loss of A$6,905,915 for the six months ended June 30, 2006. The results
for the quarter and six months ended June 30, 2007 as compared with the
corresponding periods ended June 30, 2006 reflect the following factors:
* Interest income decreased in the June 2007 quarter as a result of the
decreased cash balances held by the Company in interest bearing accounts.
For the six month period end June 30, 2007, interest revenue increased by
$391,518.
* Employee and consultant expenses increased considerably compared to the
comparative periods reflecting the increased levels of exploration,
development (at the Moto Gold Project) and corporate activity.
* Amortization and depreciation expense rose compared to the comparative
periods due to the increase in the value of capital assets associated with
the ramp up of development at the Moto Gold Project.
* Occupancy costs were slightly down in the quarter ended June 30, 2007
compared to the same period in 2006. The six month costs for the period
ended June 30, 2007 were A$98,946 compared to A$146,110 for the six months
ended June 30, 2006 mainly due to a decrease in the costs of the South
African office.
* Shareholders and listing expenses decreased compared to the comparative
periods in 2006 and 2007 due to the AIM listing costs of A$249,779. This was
offset slightly by the higher TSX listing costs to June 30, 2007.
* Marketing and promotion expenses generally decreased compared to the
comparative periods due to the higher level of promotional activity
associated with the listing of the Company's securities on the AIM market in
March 2006.
* The Company incurs the majority of its expenditure in United States
dollars, Canadian dollars and Australian dollars. The Company maintains its
cash holdings in these currencies to match anticipated future expenditure.
The year to date foreign exchange loss of A$1,449,114 (2006 - A$112,298) for
the six month period and A$1,157,249 (2006 - A$506,989) for the June 2007
quarter primarily reflects the effect of movements in the rates of exchange
of these currencies against the reporting currency (Australian dollars) on
these cash holdings.
* Stock based compensation during quarter was A$739,029 (and A$1,787,208 for
the six months to June 30, 2007) which reflected the issue in May, June,
August and October 2006 and May 2007 of stock options to directors and
staff. In 2006, stock based compensation was A$5,364,402 for the June 30,
2006 quarter and A$5,881,130 for the six month period ended on that date.
* The Company incurred an interest expense of A$919,820 in the current
quarter (and A$1,524,266 for the six months to June 2007) compared to A$ nil
in the comparative periods in 2006 arising from the assumption by the
Company of debt, in accordance with the November 2006 Protocol, owed by
Okimo to Orgaman (See Item 6 - Liquidity, Capital Resources and
Commitments).
The loss per share reflects the loss for the specific reported period and the
increase in the number of common shares on issue.
5. Summary of Quarterly Results
For the three months ended 30 June 2007
2007 2007 2006 2006 2006 2006 2005 2005
30-Jun 31-Mar 31-Dec 30-Sep 30-Jun 31-Mar 31-Dec 30-Sep
A$ A$ A$ A$ A$ A$ A$ A$
Revenue 717,635 744,949 848,404 902,461 826,338 244,728 235,730 77,495
Loss 3,501,318 2,189,457 4,713,269 1,809,636 5,977,749 928,167 3,647,283 632,291
Loss per 5.64 3.53 7.69 3.0 10.3 1.98 8.38 1.77
share (cents)
Significant factors in respect of the quarterly results are:
* Large increase (A$1,157,249) in foreign exchange losses due to
the strengthening of the Australian dollar against the US dollar.
* Stock based compensation costs were A$309,150 less in the
quarter ended June 30, 2007. The issue of stock based compensation in May and
June 2006 (June 30, 2007 quarter expense A$250,406), August 2006 (June 30, 2007
quarter expense A$424,054), October 2006 (June 30, 2007 quarter expense
A$97,451) and May 2007 (June 30, 2007 quarter expense A$26,124). There was also
an adjustment of A$59,004 in stock based compensation costs which related to
prior period calculations.
* Employee and consultant expenses increased from A$566,011 in
the quarter ended March 31, 2007 to A$718,783 in the June 2007 quarter as a
result of the increased level of exploration, Moto Gold Project development and
corporate related activity.
* Interest expense of A$919,820 incurred in the current quarter
(March 31, 2007 - A$604,446) arising in accordance with the November 2006
Protocol (See Item 6 - Liquidity, Capital Resources and Commitments).
* Marketing and promotion costs were A$240,963 for the quarter
ended June 30, 2007 compared to A$115,771 in the March 2007 quarter. This was
due to higher conference and seminar, advertising and promotion and travel
costs.
6. Discussion of Cash Flows, Liquidity and Financial Position
Quarter Six Months
June 30, 2007 June 30, 2006 June 30, 2007 June 30, 2006
A$ A$ A$ A$
Operating activities 163,912 (721,689) (1,089,558) (934,772)
Investing activities (12,335,290) (6,458,804) (19,637,128) (11,247,277)
Financing activities 140,938 6,569,246 864,314 63,132,710
Comparison of the quarters ended June 30, 2007 and June 30, 2006 and comparison
of the six-months ended June 30, 2007 and June 30, 2006
* Increased employee and consultant expenses and shareholder and listing
expenses as a result of maintaining listings on TSX and AIM, the increased
number of executive directors, and the maintenance of additional offices in
Johannesburg and Kinshasa. Additionally, the Company experienced foreign
exchange losses of A$1,157,249 during the quarter ended June 30, 2007
compared to losses of A$506,989 in the comparative quarter to June 30, 2006.
* Increased exploration and development expenditure at the Moto Gold Project
as the Company continued with its exploration and development activities,
including an increase in the level of bankable feasibility study related
work, capital assets and Moto Gold Project infrastructure projects including
the Doko to Aru road, site accommodation etc.
* Receipt of A$0.1 million from the exercise of warrants during the quarter
ended June 30, 2007 compared to receipts of A$6.6 million from the issue of
shares and warrants in June 2006.
The Company believes that it has sufficient cash resources to complete the BFS
and continue its exploration and development activities at the Moto Gold
Project. The Company will then need to issue further equity to fund the initial
stages of construction. The speed at which the Moto Gold Project can be
developed will be dependent on the Company's ability to raise equity.
The Company expects that it will cost a further A$455,000 to complete the BFS.
Liquidity and Capital Resources and Commitments
The Company funds its exploration and development activities primarily through
equity fund raisings. During the quarter ended June 30, 2007, the Company raised
approximately A$0.14 million in cash from the exercise of warrants compared to
approximately A$6.57 million in the quarter ended June 30, 2006. Given the
ongoing review by the Commission and the continued uncertainty which has had an
adverse impact on the Company's share price, the Board decided not to seek to
raise additional equity during the quarter.
The Company had working capital as at June 30, 2007 of A$8.8 million (as at
March 31, 2007, A$34.8 million). The decrease in working capital during the
quarter was due to the increase in the ongoing activities of the Company with no
significant equity issues or exercising of warrants and options during the
quarter and the movement of the loan due from the Company to Orgaman from non
current liability to current liability of A$11.781 million.
As described above, in November 2006, the Company entered into the November 2006
Protocol with Okimo to enter into a consolidated contractual arrangement to
replace the Existing Contracts that will govern the development of and future
production activities at the Moto Gold Project. In light of the review by the
Commission, the Company has been unable to progress the documentation to
implement the November 2006 Protocol, pending the results of the Commission
being made public.
The table below set forth the contractual obligations of the Group, including
the liabilities arising from the agreements contained in the November 2006
Protocol.
Principal Payments Due by Period (A$ million)
Contractual Obligations Total Less than 1 1 - 3 years 4 - 5 years After 5
year years
Loan due to joint venture partner
35.766 23.563 12.203 - -
Consolidation payment due to
Okimo 5.891 5.891 - - -
License rental payments 17.319 4.948 12.371 - -
Total Contractual Obligations 58.976 34.402 24.574 -
7. Proposed Transactions and Transactions Subsequent to June 30, 2007
The Company is awaiting the outcome of the review by the Commission and working
towards finalising the formalized consolidated lease agreements over the Moto
Gold Project properties in the DRC and progressively settling the transactions
that occurred under the terms of the November 2006 Protocol (See Item 6 -
Discussion of Cash Flows, Liquidity and Financial Position).
8. Critical Accounting Estimates
The preparation of financial statements in conformity with Canadian generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amount of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amount of revenues and expenses during the reporting
period. Significant areas requiring the use of management estimates relate to
the determination of the carrying value or impairment in mineral properties.
9. Outstanding Share Data
As at July 31, 2007, the Company had 62,224,773 Common Shares on issue. The
Company also had 7,260,000 stock options and 3,401,997 warrants in issue, and a
commitment to issue (a) up to 800,000 Common Shares in connection with an
agreement relating to the acquisition by the Company of its interests in the
Agbarabo licence, (b) further stock options to the Company's Chairman, Mr Jonah,
subject to compliance with stock exchange rules and receipt of any required
regulatory and shareholder approvals, on the basis that if the Company makes a
material further issuance of shares, the Company will grant stock options at the
prevailing market price expiring 6 years after grant such that the total number
of stock options granted to Mr Jonah from the date of his appointment is 5 per
cent of the total number of Common Shares issued by the Company; and (c)
1,000,000 stock options to Mr Andrew Dinning, the Company's Chief Operating
Officer, upon completion of a bankable feasibility study. These stock options
would be exercisable at the then current market price within 6 years of issue.
10. Cautionary Statement Regarding Forward-Looking Statements
Certain statements contained in this discussion and analysis that are not
historical facts constitute "forward-looking statements", including but not
limited to those statements with respect to the development of mineral deposits,
the price of mineral commodities and the Company's financial resources. These
statements involve known or unknown risks, uncertainties and other factors,
which may cause the actual results, performance or achievements of the Company
to be materially different from those projected by such forward-looking
statements. Such factors include, among others, the actual results of current
exploration activities, access to capital and future prices of gold. There can
be no assurance that the forward-looking statements contained in this discussion
and analysis will prove to be accurate as actual results and future events could
differ materially from those anticipated in such statements.
11. Additional Notes
Scientific or technical information in this Annual Report has been prepared
under the supervision of Greg Smith, technical consultant for the Company and a
qualified person under National Instrument 43-101 and a member of the
Australasian Institute of Mining and Metallurgy (AusIMM). Greg Smith has
sufficient experience which is relevant to the style of mineralisation 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" (the JORC
Code).
The Information in this report that relates to Mineral Resources is based on a
resource estimate compiled by Rick Adams who is a member of the Australasian
Institute of Mining and Metallurgy (AusIMM) and a qualified person under
National Instrument 43-101. Rick Adams is a director of Cube Consulting Pty Ltd.
Rick Adams has sufficient experience which is relevant to gold mineralisation
and resource estimation to qualify as a competent Person as defined in the
December 2004 Edition of the "Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves" (the JORC Code). Rick Adams
consents to the inclusion in this report of the Information, in the form and
context in which it appears.
Summary Financial Information
The following financial statements should be read in conjunction with the
Consolidated Financial Statements for the Second Quarter - June 30, 2007, and
the 2006 Consolidated Financial Statements and Management's Discussion and
Analysis available on the Company's website at www.motogoldmines.com
MOTO GOLDMINES LIMITED
Consolidated Balance Sheets
(Expressed in Australian dollars)
June 30, 2007 and 2006
December 31, 2006 (Unaudited)
Jun 30 Dec 31 Jun 30
2007 2006 2006
Assets
Current Assets
- Cash and cash equivalents 42,473,709 62,336,081 75,424,959
- Sundry receivables 313,162 229,263 193,698
42,786,871 62,565,344 75,618,657
Capital assets (note 3) 1,902,120 1,003,859 669,269
Receivable (note 4) 24,797,750 26,667,085 -
Mineral properties (note 4) 84,936,560 66,511,552 37,428,506
$154,423,301 $156,747,840 $113,716,432
Liabilities and
Shareholders' Equity (Deficiency)
Current Liabilities
- Accounts payable and accrued liabilities 4,518,553 1,788,052 1,942,964
- Loan due to joint venture partner (note 5) 23,562,677 12,669,454 -
- Consolidation payment due to Okimo (note 6) 5,890,669 6,334,727 -
33,971,899 20,792,233 1,942,964
Non Current Liabilities (note 5) 12,203,494 24,668,446 -
Shareholders' Equity
- Share capital (note 7) 136,470,367 135,479,418 131,178,777
- Warrants (note 9) 1,939,926 2,053,152 2,053,152
- Contributed surplus (note 8) 13,816,992 12,043,193 10,307,236
- Deficit (43,979,377) (38,288,602) (31,765,697)
108,247,908 111,287,161 111,773,468
$154,423,301 $156,747,840 $113,716,432
MOTO GOLDMINES LIMITED
Consolidated Statements of Operations and Deficit
(Expressed in Australian dollars)
Three months Three months Six months Six months
ended June 30 ended June 30 ended June 30 ended June 30
2007 2006 2007 2006
Operating Expenses:
- Employees and consultants 718,783 201,361 1,284,794 693,588
- Amortisation and depreciation 174,446 98,192 313,858 166,545
- Occupancy 50,592 57,284 98,946 146,110
- Shareholders and listings 98,093 288,180 180,247 356,430
- Marketing and promotion 240,964 197,055 356,735 465,748
- Stock based compensation (note 7e) 739,029 5,364,402 1,787,208 5,881,130
- Interest expense 919,820 - 1,524,266 -
- Foreign exchange loss (gain) 1,157,249 506,989 1,449,114 112,298
- Other 119,977 90,623 158,191 155,132
Loss before the following: 4,218,953 6,804,086 7,153,359 7,976,981
Other income:
- Interest income 707,880 826,338 1,452,829 1,071,066
- Other 9,755 - 9,755 -
717,635 826,338 1,462,584 1,071,066
Loss for the period 3,501,318 5,977,748 5,690,775 6,905,915
Retained earnings, beginning of period 40,478,059 25,787,949 38,288,602 24,859,782
Deficit, end of period 43,979,377 31,765,697 43,979,377 31,765,697
Basic and diluted loss per share $(0.056) $(0.103) $(0.092) $(0.132)
Weighted average number of common shares
outstanding: 62,168,052 57,730,630 62,091,294 52,318,494
MOTO GOLDMINES LIMITED
Consolidated Statements of Cash flows
(Expressed in Australian dollars)
Three months Three months Six months Six months
ended June 30, ended June 30, ended June ended June
2007 2006 30, 2007 30, 2006
Cash provided by (used in):
Operations:
- Loss for the period (3,501,318) (5,977,749) (5,690,775) (6,905,915)
- Items not involving cash
Stock based compensation 739,029 5,364,402 1,787,208 5,881,130
Depreciation and amortization 174,446 98,192 313,858 166,545
Foreign exchange variances (819,198) - (1,122,105) -
Interest on JV loan 749,104 - 1,532,713 -
Rentals accumulated (270,820) - (557,058) -
- Changes in non-cash operating working capital
(Increase) decrease in accounts receivable (78,074) (91,815) (83,899) (56,999)
Increase (decrease) in accounts payable and 3,170,743 (114,719) 2,730,501 (19,533)
accrued liabilities 163,912 (721,689) (1,089,558) (934,772)
Investments
- Expenditures on mineral properties (1,030,306) (6,259,897) (1,212,119) (10,963,350)
- Payments for capital assets (11,304,984) (198,907) (18,425,009) (283,927)
(12,335,290) (6,458,804) (19,637,128) (11,247,277)
Financing:
- Issuance of common shares and warrants for
cash (net of issue costs) 140,938 6,569,246 864,314 63,132,710
Increase (decrease) in cash and cash equivalents (12,030,440) (611,247) (19,862,372) 50,950,661
Cash and cash equivalents, beginning of period 54,504,149 76,036,206 62,336,081 24,474,298
Cash and cash equivalents, end of period $42,473,709 $75,424,959 $42,473,709 $75,424,959
This information is provided by RNS
The company news service from the London Stock Exchange
END
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