Beaconsfield Gold N.L. FINANCIAL STATEMENTS 1999 To 30 June, 1999 ACN 057 793 834

	Directors' Report
	Profit and Loss Statement
	Balance Sheet
	Statement of Cash Flows
	Notes To Financial Statements
	Directors' Declaration
	Independent Audit Report
	Shareholder Information
	Schedule of Interests in Mining Tenements
	Corporate Governance Statement
	Corporate Directory

Directors' Report

Your directors submit their report for the year ended 30 June 1999.

DIRECTORS

The names and details of the directors of the company in office at the date of this report are:

Henry James Stacpoole (Chairman)

Mr Stacpoole is a Launceston businessman. He has been a director of the Economic Entity for 12 years. He is Managing Director of Stacpoole Enterprises Pty Limited, which is involved in drilling and mining exploration. Mr Stacpoole is a past President of the Tasmanian Minerals Council.

Robert Niven Johanson

Mr Johanson is a director of Grant Samuel & Associates, Bendigo Bank Limited, Stadium Operations Limited and Film Australia Limited.

John George Miedecke

Mr Miedecke is a civil and environmental engineer. He is based in Hobart as a consultant, principally to the mining and processing sectors and works on projects within Australia and internationally. He has been involved with the Beaconsfield Mine since 1979, as an employee in a senior management role and as a consultant and has been a Director of Beaconsfield Gold N.L. since its inception in 1993.

Michael Ward Trumbull

Mr Trumbull is a mining engineer with over 25 years broad industry experience with companies including MIM, Renison, WMC, CRA, Amax, and ACM. In 1979, while working for Amax Exploration he recommended that company's involvement in the Beaconsfield Gold Project.

The interests of the directors in the shares and options of the company and related bodies corporate as at the date of this report are:

	Beaconsfield Gold NL
	20c fully paid ordinary shares	Options exercisable at $1.50 on or before 1 March 2000	Unlisted Options
H.J. Stacpoole	1,321,625	142,727	800,000
R.N. Johanson	463,156	38,597	800,000
J.G. Miedecke	935,949	86,882	800,000
M.W. Trumbull	3,268,520	317,817	800,000

As at the date of this report, the company had an Audit Committee, the members of which are Messrs Johanson and Trumbull.
PRINCIPAL ACTIVITIES

The principal activity of the company during the financial year was to develop the Beaconsfield Gold Mine through its participation in the Beaconsfield Gold Joint Venture.

REVIEW OF OPERATIONS

Mining

The final upgrade to the Hart Shaft hoisting system was completed early in the 1998-99 year. The system has performed well since commissioning, allowing extensive underground mine development to be achieved.

In the last quarter of the year, 84,802 tonnes (wet) was hoisted to the surface, averaging a little over 6,500 tonnes per week at an annualised rate of around 340,000 tonnes per annum (tpa). Of the total, 65,320 tonnes (wet) was waste and 19,482 tonnes (wet) was ore at an estimated average grade after mining dilution and grade cutting of 17.9 g/t gold.

For the year, total waste development was 3,109 metres with 814 metres completed in the main access decline. The primary development fleet at the end of the year consisted of a two-boom drilling jumbo, two single-boom drilling jumbos, six LHD loaders and a 32 tonne truck. A second 32 tonne truck is scheduled for delivery in September 1999.

Horizontal development was primarily associated with completing the primary ventilation connections and the underground workshop on the 375 metre level and the 500 metre level pumping station. The balance of waste developement was off-decline and stope access development at the 430, 480, 505 and 530 metre levels.

Ground conditions for the development of the main access 1 in 8 decline continued to be favourable, enabling good progress to be achieved. The decline face is currently (end August 1999) at a depth of 555 metres and off-decline access development for the fourth main level of stopes at 555 metres depth has commenced. Four main production stoping levels (480, 505, 530 and 555 metre levels) with three stopes at each level (central, east and west) will enable the full production rate of 200,000 tpa of ore to be achieved and maintained.

Total ore mined and held in stockpiles at 30 June 1999 was approximately 18,000 tonnes (dry) at an estimated grade after mining dilution and grade cutting of 17.2 g/t gold. The budgeted average grade for the first 18,000 tonnes of ore mined was approximately 14.6 g/t gold so that the grade estimate of 17.2 g/t was some 18% above budget. Included in the total stockpile figure was approximately 3,000 tonnes of low grade ore mined from the 430 East narrow vein remnant stope which was not budgeted for. On the other hand, scheduled mining of the lower grade 430 West and 455 West stopes has been deferred for the time being and mining of the high grade 505 Central stope occurred ahead of schedule.

Ore Treatment Plant

Bateman Brown & Root were awarded the tender to design, construct and commission the 200,000 tpa ore treatment plant in the first quarter of the 1998-99 year.

By the end of the year, Bateman Brown & Root estimated construction to be 94% complete. However the hand over of the fully commissioned treatment plant following completion testing is now due in November 1999 compared with the initial target of August 1999.

Commissioning of the crushing, grinding, gravity gold recovery, sulphide flotation and tailings sections commenced in late June 1999 and is currently (end August 1999) nearly compelte. Gravity gold is now being recovered from high grade Beaconsfield ore - the first since 1914.

Commissioning of the bacterial oxidation, cyanidation and Merril-Crowe circuits is scheduled for August and September 1999. The build up of inoculum on site from South African feedstock progressed well during the June 1999 quarter, under the supervision of Bactech / Mintek personnel. The inoculum is now being grown on Beaconsfield sulphide concentrate to fill the bacterial oxidation tanks.

The recruitment of mill personnel is well advanced with staff training in progress.

Services

The contract for the haulage of ore and waste from the mine and the maintenance of the haul road between the mine and the treatment plant went to tender during the year with Boral being the successful bidder. The private haul road between the Hart Shaft conveyor discharge area and the treatment plant has since been sealed by Boral. Waste rock from the mine was placed to form the outer tailings dam wall by Boral during the year at minimal cost. The run-of-mine ore pad at the treatment plant was completely filled in June 1999 and a secondary ore stockpile to the south of the tailings dam is now being utilised.

22kV power to the treatment plant was installed and commissioned during the year. Installation of the process water line from the mine wetlands area to the treatment plant and of the sand backfill line from the treatment plant to the mine were completed late in the year. Construction of the backfill plant near the Return Air Shaft at the mine is due to be completed in the September 1999 quarter.

Aminya Reference Laboratories commenced the provision of assaying facilities and services for the mine and treatment plant late in the year. Aminya are operating in a building provided by the Joint Venture at the treatment plant.

Site accounting, payroll and stores functions for the Joint Venture are now operational and Y2K compliant.

At the end of the year, there were a total of 101 permanent employees working on the operation, 84% of the planned final permanent workforce of 120. In addition, contractors will continue to be used to carry out the diamond drilling, raise boring, ore and waste haulage, assaying, security and any other specialist or peak workload requirements.

Including all contractors and casual employees at the mine and the treatment plant construction site, there were 249 personnel working at Beaconsfield at the end of the year.

Total Joint Venture cash expenditure for the 1998-99 year was $39.7 million of which Beaconsfield Gold's direct share (48.49%) was $19.3 million. Cumulative Joint Venture expenditure since 1993 was $88.9 million of which Beaconsfield Gold's attributable direct share (48.49%) was $43.1 million.

Beaconsfield Gold 100% Owned Exploration Tenements

Beaconsfield Gold has acquired two additional exploration tenements in the Beaconsfield region.

The Dazzler Range exploration licences EL 2/99 is a 158 square kilometres tenement between Beaconsfield and Port Sorell to the west. It covers a sequence of deformed sandstones and slates known as the Badger Head Inlier.

The Beaconsfield exploration licence EL 12/99 is an 8 square kilometres tenement comprising four parts adjacent to the town of Beaconsfield. Diamond core drilling of the thrust slice to the east of Beaconsfield, parallel to the Cabbage Tree Hill slice that hosts the Tasmania Reef, will be the first priority target for EL 12/99.

Gold Hedging

Beaconsfield Gold NL entered a gold hedging agreement with Bank West in October 1998.

The company initially sold forward 240,000 ounces of gold and locked in an average flat forward gold price for those ounces of approximately A$565 per ounce gross or A$537 per ounce net after arrangement and gold leasing costs. The hedged ounces, for which the date of delivery or close out is flexible, covered the period June 1999 to June 2004.

At 30 June 1999, with the spot price of gold at A$395 per ounce, the approximate net realisable value (or marked to market value) of Beaconsfield Gold's 240,000 ounce hedge book was A$18.5 million.


RESULTS

The operating result of the economic entity for the financial year after income tax and abnormal items was a loss of $27,289,454 (1998 - a loss of $2,994,262). The abnormal item reflects the writedown in the carrying value of the Beaconsfield Gold Project in the light of the prevailing low gold price at 30 June 1999.


DIVIDENDS

No dividends were paid during the period nor are there any recommended at 30 June 1999.


SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS

Shareholders' equity increased from $35,205,225 to $43,237,656, an increase of $8,032,431. Placements of 2,500,000 shares at $1 each have contributed $2,500,000 to this increase. The bulk of the remainder was provided by contributions received pursuant to the 1 for 5 renounceable right issue of $7,249,039. Costs associated with the share issues of approximately $508,000 have been debited to the share capital account.


SIGNIFICANT EVENTS AFTER BALANCE DATE

On 30 July 1999, the company placed 2.95 million shares at $1.05 per share to a range of private investors.

On 6 August 1999, the company announced the placement of 1.15 million shares at $1.05 per share to Drysdale Metals Pty Limited.

On 9 August 1999, the company issued an Offer Document inviting investors to subscribe for shares at $1.05 each. A total of 1.0 million shares were offered and the company reserved the right to accept additional subscriptions for a further 2.0 million shares. Applications had to be for a minimum of 10,000 shares and thereafter in multiples of 5,000 shares. When the offer was closed on 11 August 1999, applications had been received and accepted for the maximum possible 3.0 million shares, raising a total of $3.15 million

In total, over the two-week period, the company made placements totalling 7.1 million shares raising a total of $7.455 million. The funds were raised to assist with working capital requirements in the run up to full gold production at Beaconsfield, to enable the company to pay up its partly paid shares in Allstate on 27 August 1999 and to allow the company to progress exploration on its 100% owned tenements in the Beaconsfield region.

At an extra ordinary meeting of shareholders to be held on 21 September 1999 shareholders will be asked to ratify the issue of all the above shares.

On the 27 August 1999 the Company paid the outstanding call of 40 cents per share on its holding of 3,165,087 partly paid shares in Allstate Explorations NL.

In July and August 1999, Beaconsfield Gold NL cashed in a total of 8,000 ounces of its gold hedge book at an average prevailing spot gold price of A$392 per ounce. The total margin realised was approximately A$1.16 million or A$145 per ounce. Over the same period, Beaconsfield Gold NL sold forward a matching total of 8,000 ounces of gold for delivery in July 2004 at an average gold price after arrangement and gold leasing costs of approximately A$486 per ounce.

LIKELY DEVELOPMENTS

The major activities to be carried out over the 1999-2000 year at the Beaconsfield Mine are as follows:

• The completion of the commissioning of the 200,000 tpa underground mine and the ore treatment plant;
• The subsequent optimisation of the mine and the ore treatment plant in order to maximise the profitability of the operations and the returns to the Joint Venture participants; and
• The continued systematic exploration of the surrounding exploration tenements held by the Beaconsfield Mine Joint Venture.

During the 1999-2000 year, Beaconsfield Gold will also carry out significant exploration on its 100% owned exploration tenements in the Beaconsfield region.

ENVIROMENTAL REGULATION AND PERFORMANCE

There have been no significant known breaches of the conditions which apply on any tenements in which the company has an interest.

SHARE OPTIONS

During the year the following options were issued over ordinary shares in Beaconsfield Gold NL:

• on 30 October 1998, 50,000 options at an exercise price of $1.50 on or before 1 March 2000 to a private investor; and
• on 9 November 1998, 200,000 options at an exercise price of $1.50 on or before 1 March 2000 to Drysdale Metals Pty Ltd.

The names of all holders of options are entered in the company's register, inspection of which may be made free of charge.

No person entitled to exercise these options had or has any right, by virtue of option, to participate in any share issue of any other body corporate.

Shares issued as a result of the exercise of options

During or since the end of the financial year, holders of 4,713 options exercisable on or before 1 March 2000 have converted their options into fully paid ordinary shares at a price of $1.50 per share.

INDEMNIFICATION OF DIRECTORS AND OFFICERS

The company's Memorandum of Association provides for every officer, auditor or agent of the company to be indemnified out of the property of the company against any liability incurred by him in his capacity as officer, auditor or agent in defending any proceedings, whether civil or criminal, in which judgement is given in his favour or in which he is acquitted or in connection with any application in relation to any such proceedings in which relief is under the Law granted to him by the Court.

During or since the financial year, the company has not paid any premium in respect of a contract insuring all the directors and officer of Beaconsfield Gold NL.


DIRECTORS' & OTHER OFFICERS' EMOLUMENTS

The Board of Directors is responsible for determining and reviewing compensation arrangements for the directors and executive officer. Directors assess the appropriateness of the nature and amount of emoluments of such officers on a periodic basis by reference to relevant employment market conditions with the overall objective of ensuring maximum stakeholder benefit from the retention of a high quality Board and executive officer.

Details of the nature and amount of each element of the emolument of each director and the only executive officer of the company and the consolidated entity for the financial year are as follows:

Emoluments of directors and the executive officer of Beaconsfield Gold NL

	Annual Emoluments		Long Term Emoluments
	Base Fee $	Management Fee $	Superannuation $
H.J. Stacpoole R.N. Johanson M.W. Trumbull J. G. Meidecke C. B. Walker (Officer)	37,500 18,750 18,750 18,750 -	52,000 - 116,700 19,360 95,400	2,625 1,313 1,313 1,313 -

Options granted to directors and the executive officer of the company

Details of options granted over unissued shares in Beaconsfield Gold NL during or since the end of the year to any director and its only executive officer as part of their rumuneration are as follows:

	Options over one Ordinary Share
H.J. Stacpoole R.N. Johanson M.W. Trumbull J. G. Meidecke C. B. Walker (Officer)	300,000 300,000 300,000 300,000 150,000

DIRECTORS' MEETINGS

During the year, 13 Directors' Meetings were held. Messrs Stacpoole & Trumbull attended all 13 meetings and Mr Johanson & Mr Miedecke attended 12 meetings.

During the year, 2 Audit Committee Meetings were held. Messrs Johanson and Trumbull attended both meetings.

CORPORATE GOVERNANCE

In recognising the need for the highest standards of corporate behaviour and accountability, the directors of Beaconsfield Gold NL support and have adhered to the principles of corporate governance. The company's corporate governance statement is contained in the additional ASX information section of this annual report.

Signed in accordance with a resolution of the directors.


M W Trumbull
Director

Melbourne, 16 September 1999.

		Consolidated		Beaconsfield Gold N.L.
	Notes	1999 $	1998 $	1999 $	1998 $
Operating Revenue	2	150,743	67,564	150,743	67,564
Operating Loss before Income Tax and Abnormal Items	2	(1,047,038)	(2,067,985)	(1,047,038)	(2,067,985)
Abnormal Items	3	(26,242,416)	(926,277)	(26,074,620)	(926,277)
Operating Loss before Income Tax		(27,289,454)	(2,994,262)	(27,289,454)	(2,994,262)
Income Tax Attributable to Operating Loss	4	-	-	-	-
Operating Loss after Income Tax		(27,289,454)	(2,994,262)	(27,289,454)	(2,994,262)
Accumulated Losses at the Beginning of the Financial Year		(5,051,212)	(2,056,950)	(5,051,212)	(2,056,950)
Accumulated Losses at the End of the Financial Year		(32,340,666)	(5,051,212)	(32,340,666)	(5,051,212)

		Consolidated		Beaconsfield Gold N.L.
		1999 $	1998 $	1999 $	1998 $
CURRENT ASSETS Cash Receivables	5	2,884 1,194,395	119,588 711,750	2,886 1,194,395	119,590 711,750
TOTAL CURRENT ASSETS		1,197,279	831,338	1,197,281	831,340
NON-CURRENT ASSETS Investments Property, Plant & Equipment Exploration, Evaluation & Development Other	6 7 8 9	17,639,138 13,252,377 14,297,623 311,036	17,125,273 3,532,308 26,734,157 -	17,893,163 13,252,377 13,814,411 311,036	17,379,298 3,532,308 26,250,945 -
TOTAL NON-CURRENT ASSETS		45,500,174	47,391,738	45,270,987	47,162,551
TOTAL ASSETS		46,697,453	48,223,076	46,468,268	47,993,891
CURRENT LIABILITIES Accounts Payable Borrowings	10 11	116,513 -	579,430 7,000,000	68,957 -	531,874 7,000,000
TOTAL CURRENT LIABILITIES		116,513	7,579,430	68,957	7,531,874
NON-CURRENT LIABILITIES Borrowings Provisions	12 13	29,308,801 109,103	5,329,318 109,103	29,236,275 -	5,256,792 -
TOTAL NON-CURRENT LIABILITIES		29,417,904	5,438,421	29,236,275	5,256,792
TOTAL LIABILITIES		29,534,417	13,017,851	29,305,232	12,788,666
NET ASSETS		17,163,036	35,205,225	17,163,036	35,205,225
SHAREHOLDERS' EQUITY Share Capital Reserves Accumulated Losses	14	49,503,702 - (32,340,666)	9,763,726 30,492,711 (5,051,212)	49,503,702 - (32,340,666)	9,763,726 30,492,711 (5,051,212)
TOTAL SHAREHOLDERS' EQUITY		17,163,036	35,205,225	17,163,036	35,205,225

		Consolidated		Beaconsfield Gold N.L.
	Notes	1999 $	1998 $	1999 $	1998 $
CASH FLOWS FROM OPERATING ACTIVITIES Interest received Dividends received Borrowing costs Payments to suppliers and employees		150,474 269 (2,184,908) (889,636)	62,564 - (784,173) (1,049,682)	150,474 269 (2,184,908) (889,636)	62,564 - (785,053) (1,049,682)
NET CASH FLOWS USED IN OPERATING ACTIVITIES	21	(2,923,801)	(1,771,291)	(2,923,801)	(1,772,171)
CASH FLOWS FROM INVESTING ACTIVITIES Purchase of shares Acquisition of plant & equipment Mine development expenditure		(681,661) (10,508,292) (11,747,053)	- (2,055,507) (17,205,170)	(681,661) (10,508,292) (11,747,053)	- (2,055,507) (17,205,170)
NET CASH FLOWS USED IN INVESTING ACTIVITIES		(22,937,0068)	(19,260,677)	(22,937,006)	(19,260,677)
CASH FLOWS FROM FINANCING ACTIVITIES Cash proceeds from issue of shares Payment of Security Deposit Payment of Share Issue Costs Repayment of Borrowings - Related bodies corporate - Other Proceeds of Borrowings		9,802,949 (905,250) (555,684) - (12,000,000) 28,979,483	13,550,730 - (381,828) - - 7,000,000	9,802,949 (905,250) (555,684) - (12,000,000) 28,979,483	13,550,730 - (381,828) 228,182 - 7,000,000
CASH FLOWS FROM FINANCING ACTIVITIES		25,321,498	20,168,902	25,321,498	20,397,084
NET DECREASE IN CASH HELD		(539,309)	(863,066)	(539,309)	(635,764)
Add opening cash brought forward		719,588	1,582,654	719,590	1,355,354
CLOSING CASH CARRIED FORWARD	21	180,279	719,588	180,281	719,590

1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Statement of Accounting Policies

The financial report is a general purpose financial report and has been prepared in accordance with the historical cost convention, except for certain assets which are at valuation. Cost in relation to assets represents the cash amount paid or the fair value of the asset given in exchange.

The financial report has been made out in accordance with the requirements of the Corporations Law which includes applicable Accounting Standards. Other mandatory professional reporting requirements (Urgent Issues Group Consensus Views) have also been complied with.

Principles of Consolidation

The consolidated accounts are those of the economic entity, comprising Beaconsfield Gold N.L. (the chief entity) and all entities which Beaconsfield Gold N.L. controlled from time to time during the year and at year end.

The consolidated accounts include the information contained in the financial statements of Beaconsfield Gold N.L. and each of its controlled entities as from the date the chief entity obtains control until such time as control ceases.

The accounts of controlled entities are prepared for the same reporting period as the chief entity, using consistent accounting policies. Adjustments are made to bring into line any dissimilar accounting policies which may exist.

All intercompany balances and transactions, and unrealised profits arising from intra economic entity transactions, have been eliminated in full.

Income Tax

The company has adopted the liability method of tax-effect accounting. Income tax expense shown in the profit and loss account is calculated on the operating profit before tax adjusted for items which, due to the treatment under income tax legislation, create permanent differences between the accounting profit and taxable income (Note 3).

Deferred income tax liability and future income tax benefits represent the tax effect at current rates of timing differences which occur when items of revenue or expenditure are included in the determination of accounting profit in periods different to the periods in which those items are assessable or allowable for income tax purposes.

Future income tax benefits are not brought to account unless realisation of the asset is assured beyond any reasonable doubt. In respect of companies incurring losses, future income tax benefits are not brought to account unless in the opinion of the directors realisation of the benefit is virtually certain.

Cash

For the purposes of the statement of cash flows, cash includes cash on hand and in banks, and money market investments readily convertible to cash within two working days, net of outstanding bank overdrafts.

Investments

Long term investments are stated at cost, with provisions raised to write down the carrying value where it is considered there has been a diminution in value. The adequacy of the provision for diminution is reviewed semi-annually.

Director and Executives Option Scheme

The value of the directors and executives option scheme described in note 14 is not being charged as an entitlement expense.

Revenue Recognition

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the entity and the revenue can be reliably measured. The following specific recognition criteria must also be met before revenue is recognised:

Interest

Control of a right to receive consideration for the provision of, or investment in, assets has been attained .

Dividends

Control of a right to receive consideration for the investment in assets is attained, usually evidenced by approval of the dividend at a meeting of shareholders .

Exploration, Evaluation & Development Expenditure

Costs incurred during the exploration, evaluation and development stages of an area of interest are accumulated and only carried forward if:

a) they are expected to be recouped through successful development and exploitation of the area of interest, or alternatively, by its sale; or
b) such activities in the area of interest have not at balance date reached a stage which permits a reasonable assessment of the existence or otherwise of economically recoverable reserves, and active and significant operations in, or in relation to, the area of interest are continuing.

Costs are written off as soon as an area has been abandoned or is considered to be non-commercial. Exploration costs on adjacent areas and elsewhere are written off as incurred.

Once production commences, expenditure accumulated in respect of areas of interest will be amortised on a full production basis against the economically recoverable reserves.

Restoration costs that are expected to be incurred are provided for as part of the cost of the exploration, evaluation, development, construction or production phases that give rise to the need for restoration. Accordingly, these costs are recognised over the life of the facility as these phases occur. The costs include obligations relating to the rehabilitation of the Hart Shaft collar area, the mine dewatering system and other costs associated with the restoration of the site. These estimates of the restoration obligations are based on anticipated technology and legal requirements and future costs and have not been discounted. Any changes in the estimates are adjusted prospectively. In determining the restoration obligations, the entity has assumed no significant changes will occur in the relevant Federal and State legislation in relation to restoration of such mines in the future.

Property, Plant & Equipment

Property, plant and equipment are carried at cost. Any gain or loss on the disposal of assets is determined as the difference between the carrying amount of the asset at the time of disposal and the proceeds of disposal, and is included in the result of the company or economic entity in the year of disposal.

Assets are depreciated on a straight line basis at rates based upon their expected useful lives (10 years).

Recoverable Amount

Non-current assets are not revalued to an amount above their recoverable amount, and where carrying values exceed this recoverable amount assets are written down. In determining the recoverable amount, the expected net cash flows have been discounted to their present value.

Joint Venture

Interest in the joint venture is brought to account by including in the respective classifications, the share of individual assets employed, and liabilities and expenses incurred.

	Consolidated		Beaconsfield Gold NL
	1999 $	1998 $	1999 $	1998 $
2 OPERATING LOSS
Included in the operating loss are the following items of operating revenue:
Interest - other persons/corporations	150,743	67,564	150,743	67,564
Operating Revenue	150,743	67,564	150,743	67,564
The operating profit/(loss) before income tax is arrived at after charging the following items:
Transfers to provisions for:- Non-recovery of amounts due from controlled entity Borrowing costs:	-	-	-	(881)
- Interest expense - other person	1,490,271	801,556	1,490,271	801,556
- Amortisation of establishment fees	37,694	-	37,694	-
	1,527,965	801,556	1,527,965	801,556
Borrowing costs capitalised	(1,104,083)	-	(1,104,083)	-
Borrowing costs expensed	423,882	801,556	1,104,083	801,556
3 ABNORMAL ITEMS
Included in the operating loss are the following abnormal items:
Provision for diminution in value of investments (no applicable income tax)	167,796	926,277	167,796	926,277
Write down in carried forward exploration, evaluation and development costs (no applicable income tax)	26,074,620	-	26,074,620	-
	26,242,416	926,277	26,242,416	926,277
4 INCOME TAX
Prime facie tax on operating profit/(loss) calculated at 36% Tax effect on permanent differences: Provision for diminution in value of investments Non-deductible legal expenses	(9,824,203) 60,407 -	(1,077,934) 333,460 78,021	(9,824,203) 60,407 -	(1,077,934) 333,460 78,021
Income tax benefit	(9,763,796)	(666,453)	(9,763,796)	(666,453)
Income tax benefit not brought to account	9,763,796	666,453	9,763,796	666,453
Income tax expense attributable to operating loss	-	-	-	-

Future income tax benefits calculated at 36 cents in the dollar of $13,320,831 for the economic entity (1998 $3,557,035) and $10,973,699 for Beaconsfield Gold NL (1998 $1,209,903) relating to tax losses and timing differences have not been included in the accounts because there is no virtual certainty that the benefits will be realised.

The benefit will only be obtained if:

a) The economic entity derives assessable income of a nature and of an amount sufficient to enable the benefit to be realised;

b) The economic entity continues to comply with the conditions for deductibility imposed by income tax law; and

c) No change in income tax legislation adversely affects the benefits of the deduction for the loss.

5 RECEIVABLES
Short Term Deposits Security Deposits	177,395 1,017,000	600,000 111,750	177,395 1,017,000	600,000 111,750
	1,194,395	711,750	1,194,395	711,750
6 INVESTMENTS (Non-Current)
Shares listed on a Stock Exchange at cost Provision for Diminution in Value	18,733,211 (1,094,073)	18,051,55 (926,277)	18,733,211 (1,094,073)	18,051,550 (926,277)
	17,639,138	17,125,273	17,639,138	17,125,273
Investments not listed on a Stock Exchange:
Shares in Controlled Entity at cost Provision for Diminution in Value	- -	- -	498,710 (244,685)	498,710 (244,685)
	-	-	254,025	254,025
	17,639,138	17,125,273	17,893,163	17,379,298
Included in the investments above is the company's 32.0% (1998 32.0%) interest in Allstate Explorations NL ("Allstate"). The market value of this investment at 30 June 1999 is $18,907,555 (1998 $17,125,273). The principal activity of Allstate is also the development of the Beaconsfield Gold Project through its participation in the Beaconsfield Gold Joint Venture. The company has determined that it does not have the capacity to either control or significantly influence the operations of Allstate.

6 INVESTMENTS (Non-Current) (cont'd) Investments in controlled entities comprise :
	Country of Incorporation	% Held by Beaconsfield Gold NL		Book value of Shares held
		1999 $	1998 $	1999 $	1998 $
Chief Entity Beaconsfield Gold NL	Australia
Controlled Entity Beaconsfield Gold Mines Ltd - Ordinary Shares	Australia	100.00	100.00	254,025	254,025
Controlled Entity of Beaconsfield Gold Mines Ltd Beaconsfield Operations Pty Ltd - Ordinary Shares	Australia	100.00	100.00	-	-
Controlled Entity of Beaconsfield Operations Pty Ltd Beaconsfield Tasmania Pty Ltd - Ordinary Shares	Australia	100.00	100.00	-	-

	Consolidated		Beaconsfield Gold NL
	1999 $	1998 $	1999 $	1998 $
7 PROPERTY, PLANT & EQUIPMENT
Plant & Equipment at cost Accumulated Depreciation	14,921,396 (1,669,019)	4,445,832 (913,524)	14,650,844 (1,398,467)	4,175,280 (642,972)
	13,252,377	3,532,308	13,252,377	3,532,30

Plant and Equipment represents mostly the group's 48.49% (1998 - 48.49%) interest in the Beaconsfield Gold Project Joint Venture.

The economic entity does not have a set policy for regular revaluation of plant and equipment.

8 EXPLORATION, EVALUATION & DEVELOPMENT
Costs carried forward in respect of mining areas of interest in the development phase. Exploration, Evaluation and Development costs.	14,297,623	26,734,157	13,814,411	26,250,945
Exploration, evaluation & development costs relate to expenditure on drilling, dewatering and development at the Beaconsfield mine.
Amortisation of the costs carried forward for the development phase is not being charged pending the commencement of production. The reduction in the carrying value of exploration, evaluation and development costs is a result of a write down to recoverable amount (refer Note 3).
	Consolidated		Beaconsfield Gold NL
	1999 $	1998 $	1999 $	1998 $
9 OTHER NON-CURRENT ASSETS Prepayments	311,036	-	311,036	-
10 ACCOUNTS PAYABLE (Current)
Trade Creditors Other Creditors	106,513 10,000	569,430 10,000	58,957 10,000	521,874 10,000
	116,513	579,430	68,957	531,874
11 BORROWINGS (Current)
Loans At Call (secured)	-	7,000,000	-	7,000,000
12 BORROWINGS (Non-current)
Payable to controlled entities (Note 24) Government Loan Convertible Note Loan (secured) Bank Loan (secured)	- 329,318 - 28,979,483	- 329,318 5,000,000 -	228,182 28,610 - 28,979,483	228,182 28,610 5,000,000 -
	29,308,801	5,329,318	29,236,275	5,256,792

On 12 October 1998 a loan facility for $29,000,000 was established with Bank of Western Australia Limited terminating on 31 December 2003. At the time the loan was established the company issued BankWest with 2,000,000 options exercisable at $1.25 each on or before 31 December 2001.

The loan facility was established to enable Beaconsfield Gold to repay a short term facility of $7 million and a $5 million convertible note with NM Rothschild (Australia) Limited, and to provide the company with its share of the necessary funds to bring the Beaconsfield Mine into production.

This loan facility is secured by a fixed and floating charge over all the company's assets including its percentage interest in the Beaconsfield Joint Venture.

As part of the arrangement with BankWest the company entered into a gold hedging agreement. The agreement allows for the future delivery of 240,000 ounces of gold at an average flat forward net gold price of $A 537/ounce.

	Consolidated		Beaconsfield Gold NL
	1999 $	1998 $	1999 $	1998 $
13 PROVISIONS (Non-Current)
Restoration costs	109,103	109,103	-	-

14 SHARE CAPITAL
ISSUED AND PAID UP 60,384,340 (1998:48,818,628) ordinary shares		49,503,702	9,763,726	49,503,702	9,763,726
During the year the Company issued the following shares:
- 4,413 fully paid ordinary shares at $1.50, upon the exercise of options. - 2,000,000 fully paid ordinary shares at $1.00 to Drysdale Metals Pty Ltd and 500,000 fully paid ordinary shares at $1.00 to a private investor. - 9,061,299 fully paid ordinary shares at $0.80 under the terms of a Prospectus for a 1 for 5 renounceable rights issue dated 26 May 1998.
The proceeds from the above issues have been used to fund further exploration, evaluation and development activities. Costs associated with the share issues of approximately $508,000 have been debited to the share capital account.
OPTIONS (LISTED)
1999	1998
5,022,380	4,776,793
During the year 4,413 1 March 2000 options were exercised and the Company placed 250,000 1 March 2000 options.
OPTIONS (UNQUOTED)
1999	1998
5,945,000	3,595,000

On 12 October 1998, 2,000,000 options were issued to Bank of Western Australia Limited, exercisable on or before 31 December 2001 at an exercise price of $1.25 and 1,350,000 were issued under the Beaconsfield Gold Directors and Executives option scheme exercisable on or before 11 December 2003 at $1.01. On 30 June 1999 1,000,000 options previously issued to Rothschild Australia Limited lapsed.

BEACONSFIELD GOLD OPTION SCHEME

An option scheme has been established where executives, employees and consultants of the consolidated entity are issued with options over the ordinary shares of Beaconsfield Gold NL. The options are issued for nil consideration. The options can only be transferred between executives, employees and consultants of the consolidated entity and are not quoted on the ASX. All executives, employees and consultants of the consolidated entity are eligible for this scheme.

During the year, 1,350,000 options were issued under this scheme to eligible executives. The options issued can be exercised on or before 11 December 2003 at an exercise price of $1.01. At balance date there were 3,745,000 options on issue under this scheme. No options have been exercised up to 30 June 1999 and accordingly, no amount has been received or is due and receivable from holders of the options.

No other equities in any of the entities within the consolidated entity were acquired by or issed to executives, employees or consultants during the year.

	Consolidated		Beaconsfield Gold NL
	1999 $	1998 $	1999 $	1998 $
15 RESERVES
Share Premium	-	30,492,711	-	30,492,711
Movements in reserves
Share premium
Balance at beginning of year	30,492,711	20,054,970	30,492,711	20,054,970
Issue of 12,993,156 fully paid ordinary shares at a premium of $0.80 per share	-	10,394,525	-	10,394,525
Issue of 39,222 fully paid ordinary shares at a premium of $1.30 per share	-	50,989	-	50,989
Issue of 623,426 fully paid ordinary shares at premium of $0.60 per share	-	374,055	-	374,055
Less share issue costs	-	(381,828)	-	(381,282)
Transfer of balance as at 1 July 1998 to the Share Capital Account to reflect the abolition of the concepts of par value and share premium	(30,492,711)	-	(30,492,711)	-
Balance at end of year	-	30,492,711	-	30,492,711

			Consolidated		Beaconsfield Gold NL
			1999 $	1998 $	1999 $	1998 $
16 REMUNERATION OF DIRECTORS
a) Directors remuneration:
Income paid or payable, or otherwise made available, in respect of the financial year, to all directors of each entity in the economic entity, directly or indirectly, by entities of which they are directors or any related party.			288,374	173,400
Income paid or payable, or otherwise made available, in respect of the financial year, to all directors of Beaconsfield Gold NL, directly or indirectly, from the entity or any related party.					288,374	173,400
b) The number of directors of Beaconsfield Gold NL whose income (including superannuation contributions) falls within the following bands:
	1999	1998
$10,000-$19,999	-	2
$20,000-$29,999	1	-
$30,000-$39,999	1	1
$90,000-$99,900	1	-
$100,000-$109,999	-	1
$130,000-$139,909	1	-
No prescribed benefits requiring approval at a general meeting have been paid to or on behalf of directors and principal executive officers of entities in the economic entity. Included in remuneration of directors is remuneration for executive director of $136,763.

					Consolidated		Beaconsfield Gold NL
					1999 $	1998 $	1999 $	1998 $
17 REMUNERATION OF EXECUTIVES
Remuneration received or due and receivable by executive officers of the consolidated entity whose remuneration is $100,000 or more, from entities in the consolidated entity or a related party, in connection with the management of the affairs of the entities in the consolidated entity whether as an executive officer or otherwise.					136,763	-
Remuneration received or due and receivable by executive officers of the company whose remuneration is $100,000 or more, from the company or any related party, in connection with the management of the affairs of the company or any related party, whether as an executive officer or otherwise.							136,763	-
	1999	1998	1999	1998
$130,000-139,999	1	-	1	-
In the opinion of directors, remuneration paid to executives is considered reasonable.

18 AUDITORS REMUNERATION
Amounts received or due and receivable by the auditors of Beaconsfield Gold NL:
Audit and Review of the Accounts Other Services	19,500 1,400	15,500 5,500	19,500 1,400	15,500 5,500
	20,900	21,000	20,900	21,000

19 CONTRIBUTION TO PROFIT
	Contribution to Economic Entity Profit/(Loss)
	1999 $	1998 $
Beaconsfield Gold N.L.	(27,289,454)	(2,995,143)
Beaconsfield Gold Mines Limited	-	947
Beaconsfield Operations Pty Limited	-	(66)
Beaconsfield Tasmania Pty Limited	-	-
	(27,289,454)	(2,994,262)
20 EARNINGS PER SHARE
a) Basic earnings per share (cents per share)	(46.33)	(7.12)
b) Diluted earnings per share is not disclosed because it is not materially different from basic earnings per share.
c) Weighted average number of ordinary shares on issue used in the calculation of basic earnings per share	58,905,600	42,083,362
Since the end of the financial year the following ordinary shares have been issued: 300 ordinary shares upon exercise of 300 1 March 2000 options. 2,950,000 ordinary shares at $1.05 each to private investors. 1,150,000 ordinary shares at $1.05 each to Drysdale Metals Pty Ltd 3,000,000 ordinary shares at $1.05 pursuant to prospectus dated 9 August 1999

	Consolidated		Beaconsfield Gold N.L.
	1999 $	1998 $	1999 $	1998 $
21 STATEMENT OF CASH FLOWS
a) Reconciliation of Cash Cash balances comprise: Cash on Hand Short Term Deposits	2,884 177,395	119,588 600,000	2,886 177,395	119,590 600,000
	180,279	719,588	180,281	719,590
b) Reconciliation of the Operating Loss after Tax to Net Cash Flows from Operations: Operating Loss after Tax Write down in exploration, evaluation and development costs Provision for diminution in value of shares -in controlled entity -listed on the ASX Changes in assets and liabilities: Security deposit Trade Creditors Prepayments Exploration, evaluation & development	27,289,454 (26,074,620) - (167,796) - 462,917 311,036 1,102,810	2,994,262 - - (926,277) 5,000 (301,694) - -	27,289,454 (26,074,620) - (167,796) (94,750) 462,917 349,000 1,064,846	2,994,262 - 880 (926,277) 5,000 (301,694) - -
Net Cash Outflow from Operating Activities	2,923,801	1,771,291	2,923,801	1,771,291
22 INTEREST IN BUSINESS UNDERTAKINGS - JOINT VENTURE
The economic entity has a 48.49% (1998 - 48.49%) interest in the assets, liabilities and output of a joint venture arrangement, known as the Beaconsfield Mine Joint Venture, for the exploration and development of a mine in Tasmania.
The interest in the joint venture is included in the accounts as follows:
Non-current assets
Plant and equipment - at cost	14,896,691	4,429,196	14,626,139	4,159,368
23 EXPENDITURE COMMITMENTS
Estimated capital expenditure committed to date but not provided for in relation to the Beaconsfield Joint Venture:
Payable not later than one year	5,398,771	10,088,490	5,398,771	10,088,490

24 SEGMENT INFORMATION

The group operates within the gold mining industry in Australia.

25 RELATED PARTY TRANSACTIONS

a) The directors of Beaconsfield Gold N.L. during the financial year were:
H.J. Stacpoole
R.N. Johanson
J.G. Miedecke
M.W. Trumbull

b) The following related party transactions occurred during the financial year:

Transactions with Related Parties in the Wholly Owned Group

Inter-company transactions were made under normal commercial terms and conditions. Ultimate controlling entity - Beaconsfield Gold N.L.

Transactions with Director - Related Entities

The Economic Entity has purchased services totalling Nil (1998 - $31,600) on a normal commercial basis from John Miedecke and Partners Pty Ltd of which Mr J G Miedecke is the Managing Director.

The Economic Entity has purchased services totalling $23,037 (1998 - $46,410) on a normal commercial basis from Stacpoole Enterprises Pty Ltd of which Mr H J Stacpoole is the Managing Director.

The Economic Entity has purchased services totalling $52,331 (1998 - $106,435) on a normal commercial basis from Grant Samuel & Associates of which Mr R Johanson is a Director. This included $16,048 for rent of the company's Melbourne office.

c) Interests in the shares and options of entities within the economic entity held by directors of the reporting entity and their director-related entities as at 30 June 1999:

	Beaconsfield Gold N.L.
	20c fully paid ordinary shares	Unlisted Options	Listed Options
H.J. Stacpoole	1,321,625	800,000	142,727
R.N. Johanson	463,156	800,000	38,597
J.G. Miedecke	935,949	800,000	86,882
M.W. Trumbull	3,268,520	800,000	317,817

The following movements took place in the directors' share holdings and option holdings since the end of last financial year. All acquisitions, disposals and conversions of shareholdings have been conducted on normal terms and conditions.

Acquisitions

	Beaconsfield Gold NL Options expiring 11 December 2003
H.J. Stacpoole R.N. Johanson J.G. Miedecke M.W. Trumbull	300,000 300,000 300,000 300,000

Disposals/Conversions

	Beaconsfield Gold N.L. 20c fully paid ordinary shares
J. G. Miedecke M.W Trumbull H. S. Stacpoole R. N. Johanson	91,706 - 180,000 -

26 SIGNIFICANT EVENTS AFTER BALANCE DATE

On 30 July 1999, the company placed 2.95 million shares at $1.05 per share to a range of private investors.

On 6 August 1999, the company announced the placement of 1.15 million shares at $1.05 per share to Drysdale Metals Pty Limited.

On 9 August 1999, the company issued an Offer Document inviting investors to subscribe for shares at $1.05 each. A total of 1.0 million shares were offered and the company reserved the right to accept additional subscriptions for a further 2.0 million shares. Applications had to be for a minimum of 10,000 shares and thereafter in multiples of 5,000 shares. When the offer was closed on 11 August 1999, applications had been received and accepted for the maximum possible 3.0 million shares, raising a total of $3.15 million

In total, over the two-week period, the company made placements totalling 7.1 million shares raising a total of $7.455 million. The funds were raised to assist with working capital requirements in the run up to full gold production at Beaconsfield, to enable the company to pay up its partly paid shares in Allstate on 27 August 1999 and to allow the company to progress exploration on its 100% owned tenements in the Beaconsfield region.

At an extra ordinary meeting of shareholders to be held on 21 September 1999 shareholders will be asked to ratify the issue of all the above shares.

On the 27 August 1999 the Company paid the outstanding call of 40 cents per share on its holding of 3,165,087 partly paid shares in Allstate Explorations NL.

In July and August 1999, Beaconsfield Gold NL cashed in a total of 8,000 ounces of its gold hedge book at an average prevailing spot gold price of A$392 per ounce. The total margin realised was approximately A$1.16 million or A$145 per ounce. Over the same period, Beaconsfield Gold NL sold forward a matching total of 8,000 ounces of gold for delivery in July 2004 at an average gold price after arrangement and gold leasing costs of approximately A$486 per ounce.

27 FINANCIAL INSTRUMENTS

27(a) Terms, conditions and accounting policies

The economic entity's accounting policies, including the terms and conditions of each class of financial assets, financial liability and equity instruments, recognised and unrecognised at the balance date, are as follows:

Recognised Financial Instruments
Financial Instruments	Balance Sheet Notes	Accounting policies	Terms and conditions
(i) Financial assets
Short term deposits	4	Short term deposits are stated at the lower of cost and net realisable value. Interest is recognised in the profit and loss when earned.	Short term deposits have an average maturity of 7 days and effective interest of 4.29% to 4.83% (1998:4.3% to 5.45%)
Security deposits		Security deposits are stated at nominal amounts due. Interest is recognised as income on an accrual basis.	Security deposits are matured at the end of loan facility and currently earn an effective interest rate of 4.2% to 4.4%.
Investments - Listed shares	5	Listed shares are carried at the lower of cost or recoverable amount. Dividend income is recognised when the dividends are declared by the investee.
(ii) Financial liabilities
Trade creditors and accruals	9	Liabilities are recognised for amounts to be paid in the future for goods and services received, whether or not billed to the entity.	Intercompany accounts and external creditors are generally settled within 30 days.
Borrowings	10	The loans are carried at the principal amount including interest accrued. Interest is capitalised	Details of the terms and conditions are set out in note 10.
Government Loan	11	The Government Loan is carried at the principal amount.	The loan is non-interest bearing and is repayable from future profits.

(iii) Equity
Ordinary shares	13	Ordinary share capital is recognised at the fair value of the consideration received by the company	Details of shares issued and the terms and conditions of options outstanding over ordinary shares at the balance date are set out in note 13.

(iv) Unrecognised Financial Instruments
Gold Hedging		The economic entity enters into forward gold contract where it agrees to sell specified amounts of gold in the future at a predetermined price. The objective is to avoid or minimise possible adverse financial or cash flow effects of movements in gold price. The economic entity manages these exposures using a set of policies and procedures approved by the Board of Directors. Exchanged gains or losses on forward contracts are charged to the profit and loss	At balance date, the company had entered into a forward gold contract. Under the contract, the company has agreed to sell 240,000 ounces of gold until 30 June 2004 at a flat price of $536.55.

27(b) Interest rate risk

The economic entity's exposure to interest rate risks and the effective interest rates of financial assets and liabilities, recognised and unrecognised at the balance date, are as follows:

Financial Instruments	Floating interest rate		Fixed interest rate maturing in:						Non-interest bearing		Total carrying amount per the balance sheet		Weighted average effective interest rate
			1 year or less		2 to 5 years		More than 5 years
	1999	1998	1999	1998	1999	1998	1999	1998	1999	1998	1999	1998	1999	1998
	$'000	$'000	$'000	$'000	$'000	$'000	$'000	$'000	$'000	$'000	$'000	$'000	$'000	%
(i) Financial assets
Cash		-				-		-	3	120	3	120	N/A	N/A
Short term deposits and security deposit	1,177	600	-	107	-	-	-	-	17	5	1,194	712	4.68	4.79
Investments - Listed shares	-	-	-	-	-	-	-	-	17,639	17,125	17,639	17,125	N/A	N/A
Total financial assets	1,177	600		107		-		-	17,659	17,250	18,836	17,957	-	-
(ii) Financial liabilities
Trade creditors and accruals	-	-	-	-	-	-	-	-	117	579	117	579	N/A	N/A
Borrowings	28,979	7,000	-	-	-	-	-	-	-	-	28,979	7,000	7.03	6.95
Convertible note loan	-	5,000	-	-	-	-	-	-	-	-	-	5,000	7.41	8.06
Government loan	-	-	-