|
GBG
GBG
GBG - Great Basin Gold Limited - Unaudited interim consolidated financial
statements for the quarter ended March 31, 2011
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, 2011
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
(Expressed in thousands of Canadian Dollars)
March 31 December 31 January 1
2011 2010 2010
$`000 $`000 $`000
Assets
Current assets
Cash and cash equivalents 68,017 12,855 89,464
Trade and other receivables 7,292 9,340 5,053
Inventories 29,257 18,440 26,312
Other current assets 1,067 1,283 6,033
105,633 41,918 126,862
Non-current assets
Loans due from related party 12,940 13,372 -
Property, plant and equipment 700,937 695,374 359,281
Restricted cash - - 2,439
Other assets 4,948 4,719 4,590
TOTAL ASSETS 824,458 755,383 493,172
Liabilities
Current liabilities
Trade payables and accrued 55,147 61,731 29,206
liabilities
Current portion of long-term 33,712 53,516 43,768
debt
Current portion of other 406 278 -
liabilities
89,265 115,525 72,974
Non-current liabilities
Long-term debt 203,185 156,062 86,948
Other liabilities 17,824 12,419 -
Site reclamation obligations 5,470 5,660 3,990
Total liabilities 315,744 289,666 163,912
Equity
Share capital 799,444 709,449 567,596
Warrants 5,042 6,108 13,104
Contributed surplus 78,734 77,676 74,403
Deficit (374,252) (353,911) (326,770)
Accumulated other (254) 26,395 927
comprehensive(loss) income
508,714 465,717 329,260
TOTAL LIABILITIES AND EQUITY 824,458 755,383 493,172
CONSOLIDATED STATEMENT OF INCOME
For the three months ended March 31, 2011 and March 31, 2010
(Expressed in thousands of Canadian Dollars)
2011 2010
$`000 $`000
Revenue 26,343 6,822
Cost of operations
Production cost (14,146) (5,090)
Depletion charge (1,134) (140)
Depreciation charge (1,214) (203)
Expenses (2,901) (2,284)
Exploration expenses
Pre-development expenses (3,739) (2,872)
Corporate and administrative cost (2,282) (1,670)
Environmental impact study (437) (496)
Foreign exchange gain - net 2,463 1,518
Salaries and compensation
Salaries and wages (2,339) (1,296)
Share based payments expense (1,441) (890)
Loss from operating activities (827) (6,601)
Net interest(expense) income (4,682) 630
Loss on settlement of senior secured (8,817) -
notes
Net unrealized loss on financial (7,279) -
instruments recognized
Net unrealized marked-to-market 1,264 -
adjustments on financial instruments
Loss before income tax (20,341) (5,971)
Income tax - (116)
Loss for the period (20,341) (6,087)
(0.05) (0.02)
Basic and diluted loss per share
431,624
Weighted average number of common 336,893
shares outstanding (thousands)
CONSOLIDATED STATEMENT OF COMPREHENSIVE LOSS
For the three months ended March 31, 2011 and March 31, 2010
(Expressed in thousands of Canadian Dollars)
2011 2010
$`000 $`000
Loss for the period (20,341) (6,087)
Other comprehensive loss
Changes in fair value of available-for- - (104)
sale financial instruments
Cumulative translation adjustment (26,649) (9,870)
Other comprehensive loss for the (26,649) (9,974))
period
(46,990) (16,061)
Total comprehensive loss for the
period
CONSOLIDATED STATEMENTS OF SHAREHOLDERS`EQUITY AND DEFICIT
(Expressed in Canadian Dollars)
Three months ended Three months ended
March 31, 2011 March 31, 2010
$`000 $`000
Common shares Shares Shares
(thousands) (thousands)
Balance at beginning of 709,449 567,596
the period 414,015 334,158
Shares issued upon 2,221 1,650
exercise of share 949 890
options
Shares issued for 6,504 -
warrants 4,350 -
Proceeds on issuing 81,270 -
shares for public
offering net of -
issuance cost 33,827
Shares issued for - 5,518
mineral properties - 3,074
Balance at end of the 799,444 574,764
period 453,141 338,122
Share purchase warrants Warrants Warrants
(thousands) (thousands)
Balance at beginning of 6,108 13,104
the period 24,918 86,179
Proceeds on issuing (1,066) -
shares (4,350) -
Balance at end of the
period 20,568 5,042 86,178 13,104
Contributed surplus
Balance at beginning of 77,676 74,403
the period
Share based 1,870 1,229
compensation
Proceeds on issuing (812) (436)
Shares
Balance at end of the 78,734 75,196
period
Deficit
Balance at beginning of (353,911) (326,770)
the period
Nett loss for the (20,341) (6,087)
period
Balance at end of the (374,252) (332,857)
period
Accumulated other
comprehensive loss
Balance at beginning of 26,395 927
the period
Other comprehensive (26,649) (9,974)
loss
Balance at end of the (254) (9,047)
period
Total accumulated (374,506) (341,904)
comprehensive loss and
deficit at end of the
period
TOTAL EQUITY
508,714 321,160
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the three months ended March 31, 2011 and 2010
(Expressed in thousands of Canadian Dollars)
2011 2010
$`000 $`000
Operating activities
Loss for the period (20,341) (6,087)
Items not involving cash
Production non-cash charges 170 53
Pre-development non-cash charges 388 194
Exploration non-cash charges 59 74
Depreciation 1,394 255
Unrealized (gain) loss on financial (30) 12
instruments
Unrealized loss on financial 7,279 -
instruments recognized
Unrealized marked-to-market (1,264) -
adjustments on financial
instruments
Share based payments expense 1,441 890
Unrealized foreign exchange gain (2,812) (1,739)
Depletion 1,134 140
Interest expense 5,071 49
Interest income (389) (679)
Loss on settlement of senior 8,817 -
secured notes
Changes in non-cash operating
working capital
Trade and other receivables 1,784 (4,576)
Prepaid expenses 183 (446)
Inventories (8,540) (8,093)
Trade payables and accrued
liabilities (3,826) 778
Net cash utilized by operating (9,482) (19,175)
activities
Investing activities
Additions to property, plant and (36,534) (29,957)
equipment
Interest income 170 607
Reclamation deposits (361) 128
Net cash utilized by investing (36,725) (29,222)
activities
Financing activities
Common shares and warrants issued 88,117 1,139
for cash, net of issue costs
Proceeds on issuance of debt 68,810
-
Repayment of debt (53,686) (286)
Interest expense (1,128) (49)
Net cash generated from financing 102,113 804
activities
Increase(decrease)in cash and cash 55,906 (47,593)
equivalents
Cash and equivalents, beginning of 12,855 89,464
period
Foreign exchange movement on cash (744) (423)
and cash equivalents
Cash and equivalents, end of period 68,017 41,448
1. GENERAL INFORMATION
Great Basin Gold Ltd. ("Great Basin" or "the Company") is incorporated
under the laws of the Province of British Columbia and its registered
address is 1108-1030 West Georgia Street, Vancouver BC, Canada. The Company
is a mineral exploration and development company that is currently focused
on delivering two advanced stage projects: the Hollister Project on the
Carlin Trend in Nevada, USA and the Burnstone Project in the Witwatersrand
Goldfields in South Africa. The Company, currently recognized as an
emerging producer, will migrate to the rank of a junior gold producer as
production from these two projects increase during 2011 and 2012.Over and
above the exploration being conducted at the above mentioned properties,
greenfields exploration is being undertaken in Tanzania and Mozambique.
Operating results for the three month period ended March 31, 2011 are not
necessarily indicative of the results that may be expected for the full
fiscal year ending December 31, 2011. 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
period presented.
2. BASIS OF PREPARATIONS AND ADOPTION OF IFRS
The Company prepares its financial statements in accordance with Canadian
Generally Accepted Accounting Principles ("GAAP") as set out in the
Handbook of the Canadian Institute of Chartered Accountants ("CICA
Handbook"). In 2010, the CICA Handbook was revised to incorporate
International Financial Reporting Standards ("IFRS"), and require publicly
accountable enterprises to apply such standards effective for years
beginning on or after January 1, 2011. Accordingly, the Company has
commenced reporting on this basis in these interim consolidated financial
statements. In the financial statements, the term "Canadian GAAP" refers to
Canadian GAAP before the adoption of IFRS.
These condensed interim consolidated financial statements have been
prepared in accordance with IFRS applicable to the preparation of interim
financial statements, including IAS 34 and IFRS 1. Subject to certain
transition elections disclosed in the interim financial statements, the
Company has consistently applied the same accounting policies in its
opening IFRS statement of financial position at January 1, 2010 and
throughout all periods presented, as if these policies had always been in
effect. The interim financial statements discloses the impact of the
transition to IFRS on the Company`s reported financial position, financial
performance and cash flows, including the nature and effect of significant
changes in accounting policies from those used in the Company`s
consolidated financial statements for the year ended December 31, 2010,
which are available through the internet on SEDAR at www.sedar.com.
The policies applied in these condensed interim consolidated financial
statements are based on IFRS issued and outstanding as of May 5, 2011, the
date the Board of Directors approved the statements. Any subsequent changes
to IFRS that are given effect in the Company`s annual consolidated
financial statements for the year ending December 31, 2011 could result in
restatement of these interim consolidated financial statements, including
the transition adjustments recognized on change-over to IFRS.
The condensed interim consolidated financial statements should be read in
conjunction with the Company`s Canadian GAAP and annual financial
statements for the year ended December 31, 2010.
3. SIGNIFICANT ACCOUNTING POLICIES, JUDGEMENTS AND ESTIMATION UNCERTAINTY
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 for those changes recognized on change-
over to IFRS, as described in interim financial statements.
Critical accounting estimates and judgments
The Company makes estimates and assumptions concerning the future that
will, by definition, seldom equal actual results. The following are the
estimates and judgments applied by management that most significantly
affect the Company`s financial statements. These estimates and judgments
have a significant risk of causing a material adjustment to the carrying
amounts of assets and liabilities, the disclosure of contingent assets and
liabilities at the date of the financial statements and the reported
amounts of revenues and expenses during the reporting period.
Significant areas requiring the use of management estimates relate to
impairment of mineral property interests, valuation of inventories,
allocation of purchase price consideration to the fair value of
identifiable assets and liabilities acquired, the determination of
amortization, depletion and accretion, determination of reclamation
obligations, the determination of the fair values of financial instruments,
assumptions used in determining the fair value of non-cash share based
payments, warrants and derivatives, determination of valuation allowances
for deferred income tax liabilities, estimated market related interest rate
used to calculate the equity component of compound financial instruments
and allocation of indirect mining and overhead expenses to production and
development costs.
4. SEGMENT DISCLOSURE
The Company operates in reportable operating segments to deliver on its
strategy to explore, development and operate mineral properties. Management
has determined the operating segments based on the reports reviewed by the
Company`s Chief Operating Decision Maker ("CODM") that are used to make
strategic decisions. The Company`s CODM is its Chief Executive Officer.
Geographic information is as follows:
Assets March 31 December 31
2011 2010
$`000 $,000
Corporate entities
Assets other than mineral property
interests 60,337 14,159
Tanzanian exploration
Assets other than mineral property
interests 595 618
Mineral property interests 45,127 45,127
Nevada operations
Assets other than mineral property
interests 26,100 21,640
Mine development and equipment 38,762 40,508
Mineral property interests 51,243 53,742
South African operations
Assets other than mineral property
interests 38,378 25,764
Mine development and equipment 484,003 469,702
Mineral property interests 79,913 84,123
Total assets 755,383
824,458
Revenue March 31 March 31
2011 2010
$`000 $`000
Nevada operations
Sale of refined precious metals 22,509 6,822
South African operations
Sale of refined precious metals 3,834 -
26,343 6,822
During the three months ended March 31, 2011 the Company generated net
revenue from both its Nevada ($22.5 million) (US$22.8 million) and South
African ($3.8 million) (ZAR27.2 million)operations.
Refined precious metals are sold to Red Kite Explorer Trust under the terms
of an off-take agreement.
5. SUBSEQUENT EVENTS
In April 2011, the Company advanced, in accordance with the amended 2010
guarantee agreement, a further $1.6 million (ZAR11 million) to Tranter
Burnstone (Pty) Ltd ("Tranter") (related party) to enable Tranter to meet
its interest payment obligation to Investec Limited.
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
17 May 2011
Johannesburg
Sponsor
Nedbank Capital
Date: 17/05/2011 14:30:01 Produced by the JSE SENS Department.
The SENS service is an information dissemination service administered by the
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or
implicitly, represent, warrant or in any way guarantee the truth, accuracy or
completeness of the information published on SENS. The JSE, their officers,
employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature,
howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
| Profile Group (Pty) Ltd. has taken care in preparing all information on this website, but does not accept any liability for errors or out-of-date information. | |||||||||||||
| Other Profile Group sites: FundsData Online (unit trust data) | Profile Group corporate site | |||||||||||||
| [ Terms of Use | Privacy Policy | PAIA manual | FAQs/Help | Site Map | © Copyright Reserved 2026 ] | |||||||||||||
|
|||||||||||||
