| Fri 29 Jun 2007, 8:00 | | GLD - NewGold- Abridged Audited Financial Results |
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JSE GLD
GLD
GLD - NewGold- Abridged Audited Financial Results for the Year Ended 31 March
2007
NewGold Issuer Limited
(formerly Lexpub 39 Investments Limited)
(Incorporated in the Republic of South Africa)
(Registration number 2004/014199/06) Share code: GLD
ISIN: ZAE000060067
("NewGold" or "the company")
ABRIDGED AUDITED FINANCIAL RESULTS FOR THE YEAR ENDED 31 MARCH 2007
INCOME STATEMENT
for the year ended 31 March 2007
2007 2006
R R
Revenue 6 968 351 2 333 558
Fee income 5 700 141 2 019 505
Finance income 126 502 36 516
Other income 1 141 708 277 537
Operating expenses (3 170 182) (1 341 429)
Finance charges (38 364) -
Fair value adjustments 198 407 (381 543)
Profit for the year before
taxation 3 958 212 610 586
Taxation (1 297 229) (97 156)
Profit for the year after taxation 2 660 983 513 430
BALANCE SHEET
at 31 March 2007
2007 2006
R R
Assets
Non -current asset
Deferred tax 248 100 190 562
Current assets 1 753 057 113 1 223 120 345
Trade and other receivables 463 758 98 406
Cash and cash equivalents 2 418 788 1 244 568
Gold bullion 1 750 174 567 1 221 777 371
Total assets 1 753 305 213 1 223 310 907
Equity and liabilities
Share capital and reserves 1 150 312 513 530
Ordinary share capital 100 100
Retained earnings 1 150 212 513 430
Non -current liabilities
Debentures 1 749 741 042 1 221 489 672
Current liabilities 2 413 859 1 307 705
Trade and other payables 733 010 1 019 987
Current tax payable 1 680 849 287 718
Total equity and liabilities 1 753 305 213 1 223 310 907
CASH FLOW STATEMENT
for the year ended 31 March 2007
2007 2006
R R
Cash inflow/(outflow) from
operating activities
Cash generated/(utilised) from operations 3 071 919 (74 168)
Interest received 126 502 36 516
Dividends paid (2 024 201) -
Taxation paid - -
Net cash generated/(utilised)
from operating activities 1 174 220 (37 652)
Cash flows from investing activities
Sale of gold bullion 168 000 000 -
Purchase of gold bullion (304 880 000) (816 136 000)
Net cash outflow from investing
activities (136 880 000) (816 136 000)
Cash flows from financing activities
Proceeds from debenture issue 136 880 000 816 136 000
Net cash inflow from financing
activities 136 880 000 816 136 000
Net increase/(decrease) in cash and
cash equivalents 1 174 220 (37 652)
Cash and cash equivalents at beginning
of year 1 244 568 1 282 220
Cash and cash equivalents at end of year 2 418 788 1 244 568
STATEMENT OF CHANGES IN EQUITY
for the year ended 31 March 2007
Share Retained
capital earnings Total
R R R
Balance at 1 April 2005 100 - 100
Profit for the year - 513 430 513 430
Balance at 31 March 2006 100 513 430 513 530
Profit for the year - 2 660 983 2 660 983
Dividends paid - (2 024 201) (2 024 201)
Balance at 31 March 2007 100 1 150 212 1 150 312
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 March 2007
1. ACCOUNTING POLICIES
The financial information incorporate the principle accounting policies set out
below.
1.1 Statements of compliance
The financial statements are prepared in accordance with International Financial
Reporting Standard (IFRS) and its interpretations by International Accounting
Standards Board (IASB), and in the manner required by the South African
Companies Act.
1.2 Basis of preparation
The financial statements are prepared on a historic cost basis, except for
financial instruments, which are accounted for as set out in note 1.3 and gold
bullion which is accounted for as set out in note 1.4.
1.3 Financial instruments
Measurement
Financial instruments are recognised when, and only when, the Company becomes a
party to the contractual provisions of the particular instrument. Financial
instruments are initially measured at fair value. Transaction costs on financial
assets and financial liabilities at fair value through profit and loss are
expensed immediately, while on other financial instruments they are amortised.
Subsequent to initial recognition these instruments are measured as set out
below:
Debentures
The debentures are categorised as fair value through profit and loss and
therefore are initially measured at fair value excluding transaction costs. The
debentures are subsequently measured at fair value with adjustments being taken
to the income statement. The fair value of the debentures is based on quoted
gold prices after adjusting for initial expenses and appropriate monthly gold
sales charge.
Other financial assets and liabilities
Other financial assets are measured at amortised cost less impairment charges,
if any. Other financial liabilities are measured at amortised cost using the
effective interest rate method.
Cash and cash equivalents
Cash and cash equivalents are measured at fair value at balance sheet date. For
the purposes of the cash flow statement, cash and cash equivalents comprise
balances due from banks.
Offset
Financial assets and financial liabilities are offset and the net amount
reported in the balance sheet when the Company has a legally enforceable right
to set off the recognised amounts, and intends either to settle on a net basis,
or to realise the asset and settle the liability simultaneously.
Derecognition of financial instruments
The Company derecognises a financial asset when and only when:
The contractual rights to the cash flows arising from the financial assets have
expired or being forfeited by the Company; or
It transfers the financial asset including substantially all the risks and
rewards of ownership of the assets; or
It transfers the financial asset, neither retaining nor transferring
substantially all the risks and rewards of ownership of the asset, but no longer
retains control of the assets.
A financial liability is derecognised when and only when the liability is
extinguished, that is, when the obligation specified in the contract is
discharged, cancelled or has expired.
The difference between the carrying amount of a financial liability (or part
thereof) extinguished or transferred to another party and consideration paid,
including any non -cash assets transferred or liabilities assumed, is recognised
in the income statement.
1.4 Gold bullion
Gold bullion is carried at fair value less selling costs. Fair value gains and
losses are taken to the income statement.
1.5 Revenue
Revenue comprises income from:
Monthly Gold Sales Charge
The income earned from the sale of Gold Bullion. The ounces sold amount to 0.40%
p.a of the Gold Bullion held by NewGold.
Interest income
Interest is recognised on a time proportion basis, taking account of the
principal outstanding and the effective rate over the period to maturity, when
it is probable that such income will accrue to the Trust.
Other income
This income is a subsidy from the World Gold Council and is recognised in the
income statement as it accrues. These funds are to be utilised to market NewGold
securities.
1.6 Taxation
Income tax on the profit or loss for the period comprises current and deferred
tax. Income tax is recognised in the income statement except to the extent that
it relates to items recognised directly to equity, in which case it is
recognised in equity.
Current tax is the expected tax payable on the taxable income for the period,
using tax rates enacted or substantively enacted at the balance sheet date, and
any adjustment to tax payable in respect of previous periods.
Deferred taxation is provided using the balance sheet liability method based on
temporary differences. Temporary differences are differences between the
carrying amount of assets and liabilities for financial reporting purposes and
their tax base. The amount of deferred taxation provided is based on the
expected manner of realisation or settlement of the carrying amount of assets
and liabilities using tax rates enacted or substantively enacted at the balance
sheet date. Deferred taxation is charged to the income statement except to the
extent that it relates to a transaction that is recognised directly in equity.
The effect on deferred taxation of an y changes in tax rates is recognised in
the income statement, except to the extent that it relates to items previously
charged or credited directly to equity.
A deferred tax asset is recognised to the extent that it is probable that the
future taxable income will be available, against which the unutilised tax losses
and deductible temporary differences can be used. Deferred tax assets are
reduced to the extent that it is no longer probable that the related tax
benefits will be realised.
1.7 Impairments
Financial assets that are stated at cost or amortised cost are reviewed at each
balance sheet date to determine whether there is objective evidence of
impairment. If such indication exists, an impairment loss is recognised in the
income statement as the difference between the assets` carrying amount and the
present value of estimated future cash flows discounted at the financial asset`s
original effective interest rate.
If in a subsequent period the amount of an impairment loss recognised on a
financial ass et carried at amortised cost decreases and the decrease can be
linked objectively to an event occurring after the write down, the write down is
reversed through the income statement.
1.8 Provisions
Provisions are recognised when the Company has a present legal or constructive
obligation as a result of past events, for which it is probable that an outflow
of economic benefits will occur, and where a reliable estimate can be made of
the amount of the obligation. Where the effect of discounting is material,
provisions are discounted. The discount rate used is a pre- tax rate that
reflects current market assessments of the time value of money and, where
appropriate, the risk specific to the liability.
Future operating costs or losses are not provided for.
1.9 Dividends
Dividends payable to holders of the equity instruments of the Company are
recognised in the period in which they are declared.
1.10 Foreign currency translation and balances
Foreign currency transactions are measured using South African Rands, the
Company`s functional currency, on initial recognition by applying to the foreign
currency amount the spot exchange rate between the functional currency and the
foreign currency at the date of the transaction.
Foreign exchange gains or losses resulting from settlement of such transactions
and from translation at period -end exchange rates of assets and liabilities
denoted in foreign currencies, whether monetary or non monetary, are recognised
in the income statement.
1.11 Forthcoming requirements
As at the date of authorisation of these financial statements, the following
standard and interpretations, which are relevant to the Company, were in issue
but not yet effective, and have not been early adopted in the financial
statements.
IFRS 7: Disclosure (effective year end beginning 1 January 2007) IFRS 7
supersedes IAS 30, Disclosures in the Financial Statements of Banks and Similar
Financial Institutions and the disclosure requirements in IAS 32. IFRS 7
requires additional disclosure over and above that required by IAS 32 in respect
of the following:
The significance of financial instruments for an entity`s financial position and
performance;
The nature and extent of risks arising from financial instruments; and
Capital objectives and policies.
The adoption of the above standard will have no impact on the Company`s
accounting policies for financial instruments.
2. NATURE OF BUSINESS
NewGold Issuer Limited (Registration Number 2004/014119/06) ("Issuer or
NewGold") is a public company incorporated in the Republic of South Africa, the
entire issued share capital of which is held by the NewGold Owner Trust ("the
Trust"), a registered, discretionary trust. The Issuer is a special purpose
vehicle incorporated for the sole purpose of conducting an exchange traded fund
(ETF). This enables investors to invest in a debt instrument, the value of which
tracks the price of Gold Bullion.
3. PERFORMANCE
The Gold Bullion Debentures were listed on the JSE Limited ("JSE") on 2 November
2004. At 31 March 2007, 36 836 300 (2006: 34 036 300) securities were in issue
with a total market value of R1 749 741 042 (2006: R1 221 489 672). The amount
of gold bullion held at the custodian at 31 March 2007 was 11.3472 tonnes. The
return from inception was 82, 93% and annualised return from inception was
28.43%.
There is a risk that the Gold Bullion could be lost, stolen or damaged,
therefore NewGold would not be able to request either the sale of delivery of
Gold Bullion for itself or on behalf of any qualifying debenture holder . If the
custodian fails to take out suitable insurance for this as it is obliged to do,
then debenture holders have to rely on NewGold recovering the value forgone from
the custodian.
4. ANNUAL FINANCIAL STATEMENTS
These annual financial statements have been audited by the independent auditors,
KPMG Inc., and their unqualified audit report is available for inspection at the
company`s registered office.
28 June 2007
Originator
ABSA Capital
Date: 29/06/2007 08:00:03 Produced by the JSE SENS Department.
