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GBG
GBG
GBG - Great Basin - Unaudited Interim Consolidated Financial Statements For The
Quarter And Six Months Ended June 30, 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 AND SIX
MONTHS ENDED JUNE 30, 2009
CONSOLIDATED BALANCE SHEETS
(Expressed in Canadian Dollars)
June 30 December 31
2009 2008
$ $
Assets
Current assets
Cash and cash equivalents 110,175,863 33,549,118
Restricted cash 4,656,200 4,064,100
Amounts receivable 6,609,392 4,940,950
Inventory 6,300,229 8,246,093
Due from related parties 8,476 23,174
Other assets 3,794,482 2,782,667
131,544,642 53,606,102
Property, plant and equipment 119,024,118 48,849,185
Reclamation deposits 4,568,720 2,886,539
Mineral property interests 257,246,838 259,858,656
TOTAL ASSETS 512,384,318 365,200,482
Liabilities and Shareholders`
Equity
Current liabilities
Accounts payable and accrued 24,493,997 26,276,562
liabilities
Due to relates parties - 252,854
Current portion of long term 875,349 916,745
borrowings
25,369,346 27,446,161
Long term borrowings 72,291,555 62,060,594
Future income taxes 14,530,573 14,747,392
Site reclamation obligations 3,748,078 3,738,380
90,570,206 80,546,366
Shareholders` equity
Share capital 566,076,529 428,656,646
Warrants 13,103,653 24,005,896
Contributed surplus 46,097,016 21,599,521
Deficit (240,965,717) (217,267,111)
Accumulated other comprehensive
income 12,133,285 213,003
396,444,766 257,207,955
TOTAL LIABILITIES AND SHAREHOLDERS`
EQUITY 512,384,318 365,200,482
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
For the three months ended June 30, 2009 and June 30, 2008
(Expressed in Canadian Dollars)
Three months ended June 30
2009 2008
$ $
Revenue 21,876,134 7,796,115
(Expenses) income
Production cost (14,073,074) (3,890,532)
Depletion (1,326,752) -
Exploration expenses (4,428,622) (6,605,591)
Pre-development expenses (8,491,661) (25,878,952)
Accretion of reclamation obligation (9,970) (17,127)
Conference and travel (536,153) (434,931)
Environmental impact study (204,266) -
Foreign exchange gain (loss) 929,445 441,499
Legal, accounting, and audit (61,080) (345,759)
Office and administration (2,417,862) (2,196,244)
Other income 25,768 68,296
Shares and compensation
Salaries and wages (1,542,361) (245,595)
Stock-based compensation (1,955,730) (4,138,355)
Shareholder communications (141,706) (140,618)
Trust and filing (152,314) (186,103)
Loss before the undernoted and (12,510,404) (35,769,897)
income taxes
Interest expense (49,938) -
Interest received 1,469,485 623,617
Unrealized gain (loss) on held- for- 19,156 (188,678)
trading financial instruments
Loss before income taxes (11,071,701) (35,334,958)
Taxes (367,977) -
Future income tax (expense)recovery (2,176,269) 2,296,572
Loss for the period (13,615,947) (33,038,386)
Other comprehensive income (loss)
Unrealized gain(loss)on available- 360,820 (525,775)
for-sale financial instruments
Unrealized gain on foreign exchange 9,699,433 -
translation of self-sustaining
foreign operations
Other comprehensive income (loss) 10,060,253 (525,775)
(3,555,694) (33,564,161)
Total comprehensive loss for the
period
Basic and diluted loss per share (0.04) (0.16)
Weighted average number of common
shares outstanding 333,215,266 205,929,921
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
For the six months ended June 30, 2009 and June 30, 2008
(Expressed in Canadian Dollars)
Six months ended June 30
2009 2008
$ $
Revenue 33,737,518 7,796,115
(Expenses) income
Production cost (19,391,374) (3,890,532)
Depletion (3,178,627) -
Exploration expenses (8,367,200) (9,743,143)
Pre-development expenses (13,695,992) (35,949,933)
Accretion of reclamation obligation (15,106) (34,466)
Conference and travel (860,618) (810,922)
Environmental impact study (359,885) -
Foreign exchange gain (loss) 361,020 (2,140,504)
Legal, accounting, and audit (319,765) (599,340)
Office and administration (3,498,115) (3,520,769)
Other income 74,708 74,899
Salaries and compensation
Salaries and wages (2,917,401) (2,234,927)
Stock-based compensation (6,900,379) (5,157,574)
Shareholder communications (289,337) (288,884)
Trust and filing (246,596) (416,427)
Loss before the undernoted and (25,867,149) (56,916,407)
income taxes
Interest expense (118,204) -
Interest received 1,934,839 1,793,011
Loss from associate - (351,446)
Mineral properties written off (154,065) -
Unrealized gain (loss) on held-for- 162,188 (372,735)
trading financial instruments
Loss before income taxes (24,042,391) (55,847,577)
Taxes (367,977) -
Future income tax recovery 711,762 5,796,622
Loss for the period (23,698,606) (50,050,955)
Other comprehensive income (loss)
Unrealized gain(loss)on available- 729,229 (935,615)
for-sale financial instruments
Unrealized gain on foreign exchange 11,191,053 -
translation of self-sustaining
foreign operations
Other comprehensive income (loss) 11,920,282 (935,615)
(11,778,324) (50,986,570)
Total comprehensive loss for the
period
Basic and diluted loss per share (0.08) (0.24)
Weighted average number of common
shares outstanding 286,051,803 207,773,615
CONSOLIDATED STATEMENTS OF SHAREHOLDERS`EQUITY AND DEFICIT
(Expressed in Canadian Dollars)
Six months ended Six months ended
June 30, 2009 June 30, 2008
$ $
Common shares Shares Shares
Balance at 428,656,646 390,139,711
beginning of the
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: 132,699,566 -
shares issued
for cash, net of
share issue 115,000,000 -
costs
Share purchase 774,133 2,643,620
options 388,727 955,500
exercised
Shares issued 35,200 29,700
for mineral
properties 20,000 10,000
Shares issued - 22,787,802
for Rusaf Gold
Limited, April
2008 - 6,613,636
Share purchase
warrants
exercised - - 998,890 2,223,803
Balance at end 566,076,529 417,824,636
of the period 333,422,069 211,973,928
Share purchase Warrants
warrants Warrants
Balance at 24,005,896 17,934,934
beginning of the
period 49,180,312 31,433,202
Adjustment to - -
warrants issued
pursuant to
Senior Secured
Notes 8,248,240 -
Warrants issued 5,307,983 -
pursuant to
public offering,
net of share
issue costs 57,500,000 -
Exercised - - (998,890) (545,894)
Expired (28,750,000) (16,210,226) - -
Balance at end
of the period 86,178,552 13,103,653 30,434,312 17,389,040
Contributed
surplus
Balance at 21,599,521 11,509,102
beginning of the
period
Stock-based 8,544,118 6,157,932
compensation
Share purchase
options
exercised,
credited to
share capital (256,849) (859,318)
Fair value of 16,210,226 -
warrants expired
Options and - 1,763,476
warrants issued on
acquisition of
Rusaf Gold Limited
Balance at end 46,097,016 18,571,192
of the period
Deficit
Balance at (217,267,111) (132,395,033)
beginning of the
period
Net loss for the (23,698,606) (50,050,955)
period
Balance at end (240,965,717) (182,445,988)
of the period
Accumulated
other
comprehensive
income
Balance at 213,003 602,872
beginning of the
period
Unrealized 729,229 (935,615)
gain(loss)on
available-for-
sale financial
instruments
Accumulated 11,191,053 -
unrealized gain
on foreign
exchange
translation of
self-sustaining
foreign
operations
Balance at end 12,133,285 (332,743)
of the period
Total (228,832,432) (182,778,731)
Accumulated
comprehensive
loss and deficit
at end of the
period
TOTAL
SHAREHOLDERS`
EQUITY 396,444,766 271,006,137
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the three months ended June 30, 2009 and June 30, 2008
(Expressed in Canadian Dollars)
Three months ended June 30
2009 2008
$ $
Operating activities
Loss for the period (13,615,947) (33,038,386)
Items not involving cash
Depreciation 796,074 683,303
Future income tax expense 2,176,269 (2,296,572)
(recovery)
Unrealized (gain)loss on held- for- (19,156) 188,678
trading financial instruments
Non-cash stock-based compensation
expense 1,955,730 4,777,925
Unrealized foreign exchange gain 870,329 (800,696)
(loss)
Accretion reclamation obligation 9,970 17,127
Amortization 14,975 -
Depletion 1,326,752 -
Interest expense 132,024 -
Interest income (28,778) -
Changes in non-cash operating
working capital
Amounts receivable (814,465) (3,188,321)
Prepaid expenses (241,170) 214,251
Inventory 6,715,621 3,917,255
Accounts payable and accrued
liabilities 6,820,573 3,518,939
Reclamation obligation - 26,409
Cash used in operating activities 6,098,801 (25,980,088)
Investing activities
Mineral property acquisition costs - (189,036)
Additions to plant and equipment (41,415,918) (8,582,126)
Reclamation deposits (76,556) (27,204)
Cash used in investing activities (41,492,474) (8,798,366)
Financing activities
Common shares issued for cash, net
of issue costs 223,835 1,518,324
Repayment of long term borrowings (161,162) -
Advances (to) from related parties (54,190) 21,387
Cash generated from financing 8,483 1,539,711
activities
Decrease in cash and cash (35,385,190) (33,238,743)
equivalents
Cash and equivalents, beginning of
the period 144,205,168 50,528,296
Foreign exchange movement on cash 1,355,885 775,613
and cash equivalents
Cash acquired through the -
acquisition of Rusaf Gold Limited 4,494,976
Cash and equivalents, end of the
period 110,175,863 22,560,142
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the six months ended June 30, 2009 and June 30, 2008
(Expressed in Canadian Dollars)
Six months ended June 30
2009 2008
$ $
Operating activities
Loss for the period (23,698,606) (50,050,955)
Items not involving cash
Depreciation 1,567,336 1,137,560
Future income tax recovery (711,762) (5,796,622)
Unrealized (gain)loss on held- for- (162,188) 372,735
trading on financial instruments
Loss from associate - 351,446
Mineral properties written off 154,065 -
Non-cash stock-based compensation
expense 6,900,379 6,157,932
Unrealized foreign exchange gain 1,486,046 2,497,850
Accretion reclamation obligation 15,106 34,466
Amortization 28,540 -
Depletion 3,178,627 -
Interest expense 234,049 -
Interest income (56,471) -
Changes in non-cash operating
working capital
Amounts receivable (1,668,442) (3,302,557)
Prepaid expenses 2,013 348,460
Inventory 1,945,864 (1,002,079)
Accounts payable and accrued
liabilities (1,019,341) 4,843,171
Reclamation obligation - 12,999
Cash used in operating activities (11,804,785) (44,395,594)
Investing activities
Mineral property acquisition costs - (230,096)
Additions to plant and equipment (54,558,937) (15,788,639)
Reclamation deposits (1,596,969) (483,617)
Cash used in investing activities (56,155,906) (16,502,352)
Financing activities
Common shares and warrants issued
for cash, net of issue costs 142,435,817 3,366,833
Repayment of long term borrowings (398,496) -
Advances (to)from related parties (238,156) 411,792
Cash generated from financing 141,799,165 3,778,625
activities
Increase(decrease) in cash and cash
equivalents 73,838,474 (57,119,321)
Cash and equivalents, beginning of
the period 33,549,118 78,362,954
Foreign exchange movement on cash 2,788,271 (3,178,467)
and cash equivalents
Cash acquired through the - 4,494,976
acquisition of Rusaf Gold Limited
Cash and equivalents, end of the
period 110,175,863 22,560,142
CONSOLIDATED SCHEDULE OF EXPLORATION EXPENSES
(Expressed in Canadian Dollars)
Mineral Property Interests Six months Year ended
ended June 30 December 31
2009 2008
$ $
Burnstone - Exploration
Assays and analysis 24,909 40,817
Drilling 131,270 2,342,178
Engineering - 62,128
Environmental, socio-economic and 2,808 (77,592)
land
Equipment rental - 19,461
Geological - 669,751
Graphics 572 5,596
Property fees and exploration option - 7,749
payments
Site activities 89,046 182,379
Exploration expenses before the 248,605 3,252,467
following
Non-cash employee benefits - 56,895
Exploration expenses incurred during
the period 248,605 3,309,362
Cumulative exploration expenditures, 31,042,717 27,733,355
beginning of period
Cumulative exploration expenditures,
end of period 31,291,322 31,042,717
Hollister - Exploration
Assays and analysis 146,860 1,348,040
Drilling 3,925,112 8,316,210
Engineering 327,201 66,888
General office and administration 327,311 -
Geological - (19,146)
Graphics - 3,578
Property fees and exploration option 77,208 133,747
payments
Site activities 2,087,068 1,367,880
Exploration expenses before the 6,890,760 11,217,197
following
Non-cash employees benefits - 196,221
Exploration expenses incurred during 6,890,760
the period 11,413,418
Cumulative exploration expenditures, 45,195,303 33,781,885
beginning of period
Cumulative exploration expenditures,
end of period 52,086,063 45,195,303
Rusaf Gold - Exploration
Assays and analysis 98,432 938,192
Care and maintenance cost 334,980 -
Depreciation 150,021 218,553
Drilling 2,607 2,492,273
Engineering 12,371 186,313
Environmental, socio-economic and 5,359 13,091
land
Equipment rental - 477,055
Freight 42,646 450,618
Geological - 935,816
Graphics - 16,494
Property fees and exploration option 383,982 329,373
payments
Site activities 78,794 1,481,027
Exploration expenses incurred during 1,109,192 7,538,805
the period
Cumulative exploration expenditures, 7,538,805 -
beginning of period
Cumulative exploration expenditures, 8,647,997 7,538,805
end of period
Other - Exploration
Assays and analysis 44 284,553
Depreciation 10,363 14,459
Drilling - 6,605
Engineering - 62,721
Environmental, socio-economic and 4,500 -
land
Equipment rental 34,090 139,746
Freight - 141,198
Geological 56,529 473,250
Property fees and exploration option 745 103,863
payments
Site activities 12,372 384,967
Transportation - 29,790
Exploration expenses incurred during 118,643 1,641,152
the period
Cumulative exploration expenditures, 4,169,243 2,528,091
beginning of period
Cumulative exploration expenditures,
end of period 4,287,886 4,169,243
Total exploration expenses before
the following 8,367,200 23,649,621
Non-cash employee benefits - 253,116
Total exploration expenses incurred
during the period 8,367,200 23,902,737
Cumulative exploration expenditures,
beginning of period 87,946,068 64,043,331
Cumulative exploration expenditures,
end of period 96,313,268 87,946,068
CONSOLIDATED SCHEDULE OF PRE-DEVELOPMENT EXPENSES
(Expressed in Canadian Dollars)
Mineral Property Interests Six months Year ended
ended June 30 December 31
2009 2008
$ $
Burnstone - Pre-development
Mine development
Establishment work - 193,475
Equipment rental and services - 892,541
Surface infrastructure - 658,127
Portal construction - 1,292,687
Underground access and - 5,558,031
infrastructure
Depreciation - 1,144,751
Other cost
Access road - 470,575
Operational costs - 4,801,643
Long hole stoping pilot project - 192,504
Waste rock dump - 27,063
Vertical shaft - 7,778,719
Energy project - 86,256
Permanent infrastructure - surface - 582,674
Pre-development expenses before the - 23,679,046
following
Non-cash employee benefits - 414,214
Pre-development expenses incurred - 24,093,260
during the period
Cumulative pre-development 39,173,505 15,080,245
expenditures, beginning of period
Cumulative pre-development
expenditures, end of period 39,173,505 39,173,505
Hollister - Pre-development
Depreciation 788,601 1,673,964
General office and administration 1,303,359 -
Interest paid 234,049 -
Surface infrastructure - 1,880,509
Underground access and 11,112,782 25,274,165
infrastructure development
Operational costs 257,201 9,013,695
Pre-development expenses before the 13,695,992 37,842,333
following
Non-cash employee benefits - 661,970
Pre-development expenses incurred
during the period 13,695,992 38,504,303
Cumulative pre-development 56,854,588 18,350,285
expenditures, beginning of period
Cumulative pre-development expenses,
end of period 70,550,580 56,854,588
Total pre-development expenses
before the following 13,695,992 61,521,379
Non-cash employee benefits - 1,076,184
Total pre-development expenses
incurred during the period 13,695,992 62,597,563
Cumulative pre-development
expenditures, beginning of period 96,028,093 33,430,530
Cumulative pre-development
expenditures, end of period 109,724,085 96,028,093
1. NATURE OF OPERATIONS
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 six month period ended June 30, 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, 2009. 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 June 30 December31
2009 2008
Canada
Assets other than mineral property
interests 80,330,524 22,610,226
Mineral property interests 1 1
Tanzania
Assets other than mineral property
interests 1,575,248 1,551,261
Mineral property interests 36,466,782 36,466,782
United States
Assets other than mineral property
interests 13,549,687 12,863,764
Mine development and equipment 24,168,852 14,678,623
Mineral property interests 88,327,801 92,505,493
South Africa
Assets other than mineral property
interests 46,679,563 25,547,931
Mine development and equipment 88,833,606 28,090,021
Mineral property interests 132,452,254 130,886,380
Balance, end of period 365,200,482
512,384,318
Revenue June 30 June 30
2009 2008
United States
Ore sales 33,737,518 7,796,115
During the six months ended June 30, 2009 the Company generated net revenue
of $33,737,518 (2008: $7,796,115) from its Hollister operation.
The ore was sold under the terms of various toll milling and ore purchase
agreements to Newmont Mining Corporation and Echo Bay Minerals Company
("Kinross").
5. SUBSEQUENT EVENTS
Share options granted
The Company granted 1,050,000 options to employees on July 15, 2009 with an
exercise price of $1.49 per common share and expiry date of July 15, 2012.
An additional 100,000 options were also granted to a new director on July
15, 2009 with an exercise price of $1.49 per common share and expiry date
of July 15, 2014.
The full set of financial statements and Management Discussion and Analysis are
available on Great Basin`s website: www.grtbasin.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.grtbasin.com
11 August 2009
Johannesburg
Sponsor
Nedbank Capital
Date: 12/08/2009 12:00:01 Produced by the JSE SENS Department.
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