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GBG
GBG
GBG - Great Basin Gold Limited - Unaudited interim consolidated financial
statements for the quarter ended March 31, 2010
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, 2010
CONSOLIDATED BALANCE SHEETS
(Expressed in Canadian Dollars)
March 31 December
31
2010 2009
$`000 $`000
Assets
Current assets
Cash and cash equivalents 41,448 89,464
Amounts receivable 9,405 5,053
Inventory 35,394 26,312
Available-for-sale financial instruments 4,857 4,961
Held-for-trading financial instruments 196 208
Other assets 3,766 3,303
95,066 129,301
Property, plant and equipment 234,102 191,474
Reclamation deposits 4,333 4,590
Mineral property interests 223,864 222,919
TOTAL ASSETS 557,365 548,284
Liabilities and Shareholders` Equity
Current liabilities
Accounts payable and accrued liabilities 37,260 29,206
Current portion of long-term borrowings 23,035 43,768
60,295 72,974
Long-term borrowings 116,104 86,948
Future income taxes 13,057 10,659
Site reclamation obligations 3,910 3,990
133,071 101,597
Shareholders` equity
Share capital 574,764 567,596
Warrants 13,104 13,104
Contributed surplus 84,060 83,267
Deficit (272,225) (265,713)
Accumulated other comprehensive loss (35,704) (24,541)
363,999 373,713
TOTAL LIABILITIES AND SHAREHOLDERS` EQUITY 557,365 548,284
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
For the three months ended March 31, 2010 and March 31, 2009
(Expressed in Canadian Dollars)
Three months ended March 31
2010 2009
$`000 $`000
Revenue 6,822 11,861
(Expenses) income
Production cost (5,667) (5,318)
Depletion charge (195) (1,852)
Exploration expenses (2,284) (3,939)
Pre-development expenses (2,872) (5,204)
Accretion of reclamation obligation - (5)
Conference and travel (257) (324)
Environmental impact study (496) (156)
Foreign exchange gain(loss) 1,518 (568)
Legal, accounting, and audit (203) (259)
Mineral properties written off - (154)
Office and administration (912) (1,080)
Other income 21 49
Salaries and compensation
Salaries and wages (1,296) (1,375)
Stock-based compensation (890) (4,945)
Shareholder communications (163) (148)
Trust and filing (140) (94)
Loss before the undernoted and income taxes (7,014) (13,511)
Interest expense (49) (68)
Interest income 679 465
Net unrealized (loss)profit on held-for-trading (12) 143
financial instruments
Loss before income taxes (6,396) (12,971)
Taxes (116) -
Future income tax recovery - 2,888
Loss for the period (6,512) (10,083)
Other comprehensive loss
Unrealized (loss)gain on available-for-sale (104) 368
financial instruments
Unrealized (loss)gain on foreign exchange
translation of self-sustaining foreign operations
(11,059) 1,492
Other comprehensive (loss)gain (11,163) 1,860
Total comprehensive loss for the period (17,675) (8,223)
Basic and diluted loss per share (0.04)
(0.02)
Weighted average number of common shares 336,893
outstanding (thousands) 238,364
CONSOLIDATED STATEMENTS OF SHAREHOLDERS`EQUITY AND DEFICIT
(Expressed in Canadian Dollars)
Three months ended Three months ended
March 31, 2010 March 31, 2009
$`000 $`000
Common shares Shares Shares
(thousands) (thousands)
Balance at beginning of the 567,596 428,657
period 334,158 215,167
Equity line: shares issued - 3,911
for cash, net of share issue
costs - 2,846
Public offering: shares - 132,982
issued for cash, net of share
issue costs - 115,000
Share Purchase options 1,650 -
exercised 890 -
Shares issued for mineral 5,518 35
properties 3,074 20
Balance at end of the period 574,764 565,585
338,122 333,033
Share purchase warrants Warrants
Warrants (thousands)
(thousands)
Balance at beginning of the 13,104 24,006
period 86,719 49,181
Warrants issued pursuant to - -
Senior Secured Notes - 8,248
Warrants issued pursuant to - 5,319
public offering, net of share
issue costs - 57,500
Balance at end of the period
86,179 13,104 114,929 29,325
Contributed surplus
Balance at beginning of the 83,267 21,599
period
Stock-based compensation 1,229 5,503
Share purchase options
exercised, credited to share (436)
capital -
Balance at end of the period 84,060 27,102
Deficit
Balance at beginning of the (265,713) (217,267)
period
Loss for the period (6,512) (10,083)
Balance at end of the period (272,225) (227,350)
Accumulated other
comprehensive (loss)income
Balance at beginning of the (24,541) 213
period
Unrealized (loss)gain on (104) 368
available-for-
sale financial instruments
Accumulated unrealized (11,059) 1,492
(loss)gain on foreign
exchange translation of self-
sustaining foreign operations
Balance at end of the period (35,704) 2,073
Total Accumulated (307,929) (225,277)
comprehensive loss and
deficit at end of the period
TOTAL SHAREHOLDERS` EQUITY
363,999 396,735
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the three months ended March 31, 2010 and March 31, 2009
(Expressed in Canadian Dollars)
Three months ended March 31
2010 2009
$`000 $`000
Operating activities
Loss for the period (6,512) (10,083)
Items not involving cash
Depreciation 945 771
Future income tax recovery - (2,888)
Unrealized loss(gain) on held-for-trading
on financial instruments 12 (143)
Mineral properties written off - 154
Non-cash stock-based compensation expense 890 4,945
Unrealized foreign exchange (gain)loss (1,738) 1,291
Accretion reclamation obligation - 5
Amortization - 14
Depletion 195 1,852
Interest expense accrual - 102
Interest income accrual (72) (28)
Changes in non-cash operating working
capital
Amounts receivable (4,576) (854)
Prepaid expenses (446) 243
Inventory (8,093) (4,770)
Accounts payable and accrued liabilities 778 (7,840)
Cash used in operating activities (18,617) (17,229)
Investing activities
Mineral property acquisition costs (52) -
Additions to property, plant and equipment (29,905) (13,143)
Reclamation deposits 128 (1,520)
Cash used in investing activities (29,829) (14,663)
Financing activities
Common shares issued for cash, net of issue 1,139 142,212
costs
Repayment of long term borrowings (286) (237)
Advances to related parties - (184)
Cash generated from financing activities 853 141,791
(Decrease)increase in cash and cash (47,593) 109,899
equivalents
Foreign exchange movement on cash and cash (423) 757
equivalents
Cash and equivalents, beginning of the 89,464 33,549
period
Cash and cash equivalents, end of period 41,448 144,205
CONSOLIDATED SCHEDULE OF EXPLORATION EXPENSES
(Expressed in Canadian Dollars)
Mineral Property Interests Three months ended Year ended
March 31 December 31
2010 2009
$`000 $`000
Burnstone - Exploration
Assays and analysis - 28
Drilling 22 202
Equipment rental - 3
Geological - 64
Graphics - 1
Site activities 78 269
Exploration expenses incurred during the 100 567
period
Cumulative exploration expenditures, 31,610 31,043
beginning of period
Cumulative exploration expenditures, end of 31,710 31,610
period
Hollister - Exploration
Assays and analysis 29 209
Drilling 846 6,886
Engineering - 712
Environmental, socio-economic and land - 1,690
Freight 19 190
General office and administration 853 853
Geological 5 150
Property fees and exploration option - 73
payments
Site activities 209 2,955
Exploration expenses incurred during the 1,961 13,718
period
Cumulative exploration expenditures, 58,913 45,195
beginning of period
Cumulative exploration expenditures, end of 60,874 58,913
period
Rusaf Gold - Exploration
Assays and analysis - 331
Depreciation 74 299
Drilling - 11
Engineering 7 32
Freight 3 86
Geological 7 203
Property fees and exploration option 39 445
payments
Site activities 92 715
Exploration expenses incurred during the 222 2,122
period
Cumulative exploration expenditures, 9,661 7,539
beginning of period
Cumulative exploration expenditures, end of 9,883 9,661
period
Other - Exploration
Depreciation - 14
Equipment rental - 50
Freight - 3
Geological - 89
Property fees and exploration option - 2
payments
Site activities and closure 1 27
Exploration expenses incurred during the 1 185
period
Cumulative exploration expenditures, 4,354 4,169
beginning of the period
Cumulative exploration expenditures, end of 4,355 4,354
period
Total exploration expenses incurred during 2,284 16,592
the period
Cumulative exploration expenditures, 104,538 87,946
beginning of period
Cumulative exploration expenditures, end of 106,822 104,538
period
CONSOLIDATED SCHEDULE OF PRE-DEVELOPMENT EXPENSES
(Expressed in Canadian Dollars)
Mineral Property Interests Three months ended Year ended
March 31 December 31
2010 2009
$`000 $`000
Burnstone - Pre-development
Cumulative pre-development expenditures, 39,174 39,174
beginning of period
Cumulative pre-development expenditures, 39,174 39,174
end of period
Hollister - Pre-development
Depreciation 149 1,732
Property evaluation - 439
Underground access and infrastructure 2,411 20,152
development
Operational costs 267 2,487
Pre-development expenses before the 2,827 24,810
following
Office and administration 25 1,059
Pre-development expenses incurred during 2,872 25,869
the period
Cumulative pre-development expenditures, 82,723 56,855
beginning of period
Cumulative pre-development expenses, end of 85,595 82,723
period
Total pre-development before the following 2,827 24,810
Office and administration 45 1,059
Total pre-development expenses incurred 2,872 25,869
during the period
Cumulative pre-development expenditures, 121,897 96,028
beginning of period
Cumulative pre-development expenditures, 124,769 121,897
end of period
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 three month period ended March 31, 2010 are not
necessarily indicative of the results that may be expected for the full
fiscal year ending December 31, 2010. 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, 2010, 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.
CICA 1506 - Accounting changes
This Section shall be applied in accounting for changes in accounting
policies, changes in accounting estimates and corrections of prior period
errors. CICA 1506 is amended to exclude from its scope changes in
accounting policies upon the complete replacement of an entity`s primary
basis of accounting. The amendments apply to interim and annual financial
statements for years beginning on/after July 1, 2009. The adoption of this
Section had no impact of the Company`s consolidated financial results.
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
2010 2009
$`000 $,000
Canada
Assets other than mineral property
interests
23,780 76,836
Tanzania
Assets other than mineral property
interests 802 729
Mineral property interests 44,459 36,467
United States
Assets other than mineral property
interests 41,562 28,344
Mine development and equipment 38,750 37,660
Mineral property interests 74,532 79,136
South Africa
Assets other than mineral property
interests 33,673 28,476
Mine development and equipment 194,933 153,320
Mineral property interests 104,874 107,316
Total assets 548,284
557,365
Revenue March 31 March 31
2010 2009
$`000 $`000
United States
Ore sales
6,822 11,861
During the three months ended March 31, 2010 the Company generated net
revenue of $6.8 million (2009: $11.9 million) from its Hollister operation.
Refined gold and silver were sold to Red Kite Explorer Trust under the
terms of an off-take agreement.
5. SUBSEQUENT EVENTS
Restructure Senior secured notes
On April 23, 2010, the Company successfully negotiated the restructuring of
the put option on the 51,500 Senior Secured Notes (the "Notes") issued in
December 2008 with a settlement value of US$61.8 million. Of these, 7,000
Notes (value of US$8.4 million) will be settled in May 2010 by issuing the
note holders 2.2 million shares at a price of US$1.75 and paying US$4.5
million in cash. The put option on 29,500 Notes (value US$35.4 million) was
cancelled and, therefore, will only remain on 15,000 Notes (value US$18
million). The cancellation of the put option removes the potential
repayment of the Notes by December 2010 and provides the Company with the
flexibility to settle the Notes any time on or before December 12, 2011.
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 Georgia
Sandown, Johannesburg 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
10 May 2010
Johannesburg
Sponsor
Nedbank Capital
Date: 10/05/2010 12:00:01 Produced by the JSE SENS Department.
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