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GBG
GBG
GBG - Great Basin Gold Limited - Unaudited Interim Consolidated Financial
Statements for the Quarter Ended March 31, 2009
GREAT BASIN GOLD LIMITED
(Incorporated in Canada and registered as an External Company in South
Africa)
(Registration No. 2006/021304/10)
Share Code: GBG & ISIN Number: CA3901241057
("Great Basin" or "the Company")
UNAUDITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE QUARTER ENDED
MARCH 31, 2009
CONSOLIDATED BALANCE SHEETS
(Unaudited)(Expressed in Canadian Dollars)
March 31 December 31
2009 2008
$ $
Assets
Current assets
Cash and cash equivalents 144,205,168 33,549,118
Restricted cash 4,098,200 4,064,100
Amounts receivable 5,794,927 4,940,950
Inventory 13,015,850 8,246,093
Due from related parties 7,460 23,174
Held-for-trading financial
instruments 222,992 79,960
Other receivable 945,901 912,900
Prepaid expenses 647,000 890,183
168,937,498 52,706,478
Property, plant and equipment 66,205,258 48,849,185
Reclamation deposits 4,409,721 2,886,539
Available-for-sale financial
instruments 1,268,033 899,624
Mineral property interests 257,639,616 259,858,656
Total assets 498,460,126 365,200,482
Liabilities and Shareholders`
Equity
Current liabilities
Accounts payable and accrued
liabilities 17,878,669 26,276,562
Due to related parties 53,174 252,854
Current portion of long term
borrowings 949,335 916,745
18,881,178 27,446,161
Long term borrowings 67,243,242 62,060,594
Future income taxes 11,730,449 14,747,392
Site reclamation obligations 3,870,122 3,738,380
82,843,813 80,546,366
Shareholders` equity
Share capital 565,584,559 428,656,646
Warrants 29,325,165 24,005,896
Contributed surplus 27,102,149 21,599,521
Deficit (227,349,770) (217,267,111)
Accumulated other comprehensive
income 2,073,032 213,003
396,735,135 257,207,955
Total liabilities and shareholders`
equity 498,460,126 365,200,482
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
For the three months ended March 31, 2009 and 2008
(Unaudited)(Expressed in Canadian Dollars)
Three months ended March 31
2009 2008
$ $
Revenue 11,861,384 -
(5,318,300) -
(Expenses) income
Production cost
Depletion charge (1,851,875) -
Exploration expenses (3,938,578) (3,137,552)
Pre-development expenses (5,204,331) (10,070,981)
Accretion of reclamation obligation (5,136) (17,339)
Conference and travel (324,465) (375,991)
Environmental impact study (155,619) -
Foreign exchange loss (568,425) (2,582,003)
Legal, accounting, and audit (258,685) (253,581)
Office and administration (1,080,253) (1,328,527)
Other income 48,940 6,603
Salaries and compensation
Salaries and wages (1,375,040) (1,989,330)
Stock-based compensation (4,944,649) (1,019,219)
Shareholder communications (147,631) (148,266)
Trust and filing (94,082) (230,324)
Loss before the undernoted and (13,356,745)
income taxes (21,146,510)
Interest expense (68,266) -
Interest income 465,354 1,169,394
Loss from associate - (351,446)
Mineral properties written off (154,065) -
Unrealized gain (loss) on held-for- 143,032 (184,057)
trading financial instruments
Loss before income taxes (12,970,690) (20,512,619)
Future income tax recovery 2,888,031 3,500,050
Loss for the period (10,082,659) (17,012,569)
Other comprehensive income (loss)
368,409 (409,840)
Unrealized gain (loss) on available-
for-sale financial instruments
Unrealized gain on foreign exchange 1,491,620 -
translation of self-sustaining
foreign operations
Other comprehensive income (loss) 1,860,029 (409,840)
Total comprehensive loss for the (8,222,630) (17,422,409)
period
Basic and diluted loss per share (0.04) (0.08)
Weighted average number of common
shares outstanding 238,364,302 203,902,119
CONSOLIDATED STATEMENTS OF SHAREHOLDERS`EQUITY AND DEFICIT
(Unaudited)(Expressed in Canadian Dollars)
Three months ended Three months ended
March 31, 2009 March 31, 2008
$ $
Common shares Shares Shares
Balance at 428,656,646 390,139,711
beginning of
period 215,166,542 203,395,902
Equity line: 3,910,984 -
shares issued
for cash, net of
share issue 2,846,800 -
costs
Public offering: 132,981,729 -
shares issued
for cash, net of
share issue 115,000,000 -
costs
Fair value of - 631,070
options - -
exercised
Share purchase - 1,229,960
options - 723,000
exercised
Shares issued to 35,200 29,700
CW Properties
LLC, February
2009 20,000 10,000
Share purchase - 826,235
warrants
exercised - 380,029
Balance at end 565,584,559 392,856,676
of the period 333,033,342 204,508,931
Share purchase Warrants
warrants Warrants
Balance at
beginning of the
period 49,180,312 24,005,896 31,433,202 17,934,934
Adjustment to - -
warrants issued
pursuant to
Senior Secured
Notes 8,248,240 -
Warrants issued 5,319,269 -
pursuant to
public offering,
net of share
issue costs 57,500,000 -
Exercised - - (380,029) (207,686)
Balance at end 29,325,165 17,727,248
of the period 114,928,552 31,053,173
Contributed
surplus
Balance at 21,599,521 11,509,102
beginning of the
period
Stock-based 5,502,628 1,380,007
compensation
Share purchase
options
exercised,
credited to
share capital - (631,070)
Balance at end 27,102,149 12,258,039
of the period
Deficit
Balance at beginning (217,267,111) (132,395,033)
of the period
Net loss for the (10,082,659) (17,012,569)
period
Balance at end of the (227,349,770) (149,407,602)
period
Accumulated other
comprehensive income
Balance at beginning 213,003 602,872
of the period
Unrealized gain 368,409 (409,840)
(loss) on available-
for-
sale financial
instruments
Accumulated 1,491,620 -
unrealized gain on
foreign exchange
translation of self-
sustaining foreign
operations
Balance at end of the 2,073,032 193,032
period
Total accumulated (225,276,738) (149,214,570)
comprehensive loss at
the end of the period
TOTAL SHAREHOLDERS` 396,735,135 273,627,393
EQUITY
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the three months ended March 31, 2009 and 2008
(Unaudited)(Expressed in Canadian Dollars)
Three months ended March 31
2009 2008
$ $
Operating activities
Loss for the period (10,082,659) (17,012,569)
Items not involving cash
Depreciation 771,262 454,257
Future income tax recovery (2,888,031) (3,500,050)
Unrealized (gain) loss on available- (143,032) 184,057
for-trading financial instruments
Loss from associate - 351,446
Mineral properties written off 154,065 -
Non-cash stock-based compensation
expense 4,944,649 1,380,007
Unrealized foreign exchange loss 1,290,962 3,547,254
Accretion reclamation obligation 5,136 17,339
Amortization charge 13,565 -
Depletion charge 1,851,875 -
Interest expense 102,025 -
Interest income (27,693) -
Changes in non-cash operating
working capital
Amounts receivable (853,977) (114,236)
Prepaid expenses 243,183 134,209
Inventory (4,769,757) (4,919,334)
Accounts payable and accrued
liabilities (7,839,914) 1,324,232
Reclamation obligation - (13,410)
Cash used in operating activities (17,228,341) (18,166,798)
Investing activities
Mineral property acquisition costs - (41,060)
Purchase of equipment (13,143,019) (7,206,513)
Reclamation deposits (1,520,413) (456,413)
Cash used in investing activities (14,663,432) (7,703,986)
Financing activities
Common shares and warrants issued
for cash, net of issue costs 142,211,982 1,848,509
Repayment of long term borrowings (237,334) -
Advances (to) from related parties (183,966) 390,405
Cash generated from financing 141,790,682 2,238,914
activities
Increase(Decrease) in cash and cash
equivalents 109,898,909 (23,631,870)
Cash and cash equivalents,
beginning of period 33,549,118 78,362,954
Foreign exchange 757,141 (4,202,788)
Cash and cash equivalents, end of
period 144,205,168 50,528,296
CONSOLIDATED SCHEDULE OF EXPLORATION EXPENSES
(Unaudited)(Expressed in Canadian Dollars)
Mineral Property Interests Three months Year ended
ended March 31 December 31
2009 2008
$ $
Burnstone - Exploration
Assays and analysis 7,047 40,817
Drilling 62,946 2,342,178
Engineering - 62,128
Environmental, socio-economic and 2,669 (77,592)
land
Equipment rental - 19,461
Geological - 669,751
Graphics - 5,596
Property fees and exploration option - 7,749
payments
Site activities 39,665 182,379
Exploration expenses before the 112,327 3,252,467
following
Office and administration - 56,895
Exploration expenses incurred during
the period 112,327 3,309,362
Cumulative exploration expenditures, 31,042,717 27,733,355
beginning of period
Cumulative exploration expenditures,
end of period 31,155,044 31,042,717
Hollister - Exploration
Assays and analysis 80,915 1,348,040
Drilling 1,792,193 8,316,210
Engineering - 66,888
Geological - (19,146)
Graphics - 3,578
Property fees and exploration option - 133,747
payments
Site activities 1,392,288 1,367,880
Exploration expenses before the 3,265,396 11,217,197
following
Office and administration - 196,221
Exploration expenses incurred during 3,265,396 11,413,418
the period
Cumulative exploration expenditures, 45,195,303 33,781,885
beginning of period
Cumulative exploration expenditures,
end of period 48,460,699 45,195,303
Rusaf Gold - Exploration
Assays and analysis 66,406 938,192
Care and maintenance cost 234,993 -
Depreciation 73,708 218,553
Drilling - 2,492,273
Engineering 4,292 186,313
Environmental, socio-economic and 5,613 13,091
land
Equipment rental - 477,055
Freight 25,851 450,618
Geological - 935,816
Graphics - 16,494
Property fees and exploration option 31,249 329,373
payments
Site activities 61,462 1,481,027
Exploration expenses incurred, 503,574 7,538,805
during the period
Cumulative exploration expenditures, 7,538,805 -
beginning of period
Cumulative exploration expenditures, 8,042,379 7,538,805
end of period
Other - Exploration
Assays and analysis - 284,553
Depreciation 5,181 14,459
Drilling - 6,605
Engineering - 62,721
Environmental, socio-economic and 4,500 -
land
Equipment rental 11,242 139,746
Freight - 141,198
Geological 22,901 473,250
Property fees and exploration option 745 103,863
payments
Site activities 12,712 384,967
Transportation - 29,790
Exploration expenses incurred during 57,281 1,641,152
the period
Cumulative exploration expenditures, 4,169,243 2,528,091
beginning of period
Cumulative exploration expenditures,
end of period 4,226,524 4,169,243
Total exploration expenses before 3,938,578 23,649,621
the following
Office and administration - 253,116
Total exploration expenses incurred
during the period 3,938,578 23,902,737
Cumulative exploration expenditures,
beginning of period 87,946,068 64,043,331
Cumulative exploration expenditures,
end of period 91,884,646 87,946,068
1. BASIS OF PREPARATION
These unaudited interim consolidated financial statements have been
prepared in accordance with Canadian Generally Accepted Accounting
Principles ("GAAP"). They do not include all the financial statement
disclosures required for annual financial statements under GAAP. These
unaudited interim consolidated financial statements should be read in
conjunction with the Company`s annual consolidated financial statements
which are available through the internet on SEDAR at www.sedar.com.
Operating results for the three month period ended March 31, 2009 are
not necessarily indicative of the results that may be expected for the
full fiscal year ending December 31, 2009. In the opinion of management,
these unaudited interim consolidated financial statements reflect all
adjustments that are necessary for a fair presentation of the results
for the interim periods presented.
2. SIGNIFICANT ACCOUNTING POLICIES
These unaudited interim consolidated financial statements follow the
same accounting policies and methods of application as the Company`s
most recent annual financial statements, except as described in note 3.
3. ADOPTION OF NEW ACCOUNTING POLICIES
Effective January 1, 2009, the Company adopted the following accounting
standards issued by the Canadian Institute of Chartered Accountants
("CICA"). These new standards have been adopted with no restatement of
prior period financial statements.
(a) Goodwill and intangible assets (Section 3064 and 1000)
Section 3064 replaces CICA 3062 and provides guidance on the
recognition, measurement, presentation and disclosure of goodwill
and intangible assets, other than the initial recognition of
goodwill or intangible assets acquired in a business combination.
The adoption of the Section had no impact on the Company`s
statement of operations.
(b) Credit risk and the fair value of financial assets and financial
liabilities (EIC 173)
Effective January 1, 2009, the Company adopted the recommendations
of the Emerging Issues Committee ("EIC") of the CICA relating to
Abstract EIC 173, Credit Risk and the Fair Value of Financial
Assets and Financial Liabilities. This Abstract confirms that an
entity`s own credit risk and the credit risk of the counterparty
should be taken into account in determining the fair value of
financial assets and financial liabilities, including derivative
instruments, for presentation and disclosure purposes. The adoption
of this Abstract had no significant impact on the Company`s
consolidated financial statements.
(c) Mining Exploration costs (EIC174)
This Abstract considers when exploration costs related to mining
properties may be capitalized, and if exploration costs are
initially capitalized, when mining properties should be assessed
for impairment to determine whether a write-down is required, and
what conditions indicate impairment and is effective for financial
statements issued after March 27, 2007. The adoption of this
Abstract had no significant impact on the Company`s consolidated
financial statements.
4. SEGMENT DISCLOSURE
The Company operates in a single reportable operating segment, the
exploration and development of mineral properties. Geographic information is
as follows:
Assets March 31 December 31
2009 2008
Canada
Assets other than mineral property
interests 87,036,614 22,610,226
Mineral property interests 1 1
Tanzania
Assets other than mineral property
interests 1,492,547 1,551,261
Mineral property interests 36,466,782 36,466,782
United States
Assets other than mineral property
interests 38,435,920 27,542,387
Mineral property interests 90,196,272 92,505,493
South Africa
Assets other than mineral property
interests 113,855,42 53,637,952
Mineral property interests 9 130,886,380
130,976,56
1
Balance, end of period 365,200,482
498,460,126
Revenue March 31 December 31
2009 2008
United States
Ore sales 11,861,384 24,716,323
During the quarter ended March 31, 2009 the Company generated net revenue of
$11,861,384 (USD9,532,576) (2008: $nil) from its Hollister operation. The ore
was sold under the terms of various toll milling agreements to Newmont Mining
Corporation and Echo Bay Minerals Company.
5. SUBSEQUENT EVENT
The Company granted 2,380,000 options to directors on April 12, 2009
with an exercise price of $1.49 per common share and expiry date of
April 12, 2014. These options represent the new options granted in
respect of the options cancelled on January 12, 2009.
The full set of financial statements and Management Discussion and
Analysis are available on Great Basin`s website: www.greatbasingold.com
Approved by the Board of Directors
Ferdi Dippenaar Ronald W Thiessen
Director Director
Ground Floor, 138 West Street 1500 Royal Centre, 1055 West
Sandown, Johannesburg Georgia Street,
South Africa Vancouver, BC Canada V6E 4N7
Tel 011 301 1800 Toll Free 1 800 667?2114
Fax 011 301 1840
www.greatbasingold.com
14 May 2009
Johannesburg
Sponsor
Nedbank Capital
Date: 14/05/2009 12:00:01 Produced by the JSE SENS Department.
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