Beaconsfield Gold - Australia's Richest Gold Resource.

High Grade, Low Cost Gold Producer

APPENDIX 4E

PRELIMINARY FINAL REPORT
FINANCIAL YEAR ENDED 30 JUNE 2007



[Also available as a PDF File - 248K]

BEACONSFIELD GOLD NL

ABN 22 057 793 834





BEACONSFIELD GOLD NL AND CONTROLLED ENTITIES


ASX PRELIMINARY FINAL REPORT
APPENDIX 4E
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2007




ASX CODE: BCD


www.beaconsfieldgold.com.au



PRELIMINARY FINAL REPORT
FINANCIAL YEAR ENDED 30 JUNE 2007

RESULTS FOR ANNOUNCEMENT TO THE MARKET


30 June 2007
$'000
 30 June 2006
$'000
 Percentage
increase/
(decrease)
Total revenue from ordinary activities
 3,374
 24,598
 (86.28%)
Net loss from ordinary activities after tax attributable to members of the parent
 (9,537)
 (14,290)
 33.26%
Net loss after tax attributable to members of the parent
 (9,537)
 (14,290)
 33.26%





Dividends


Interim dividend per share
 Nil
 Nil
Final dividend per share
 Nil
 Nil
Record date for determining entitlement to final dividend
 Not Applicable
Date final dividend payable
Not Applicable

Review of Results
Refer to Review of Results on page 2.


Audit Report
The preliminary report is based on accounts which are in the process of being audited There are no likely disputes or qualifications to the accounts.


REVIEW OF RESULTS

The financial results for the 2006/07 year for Beaconsfield Gold and controlled entities are summarised in the following table:


 2007
($'000)
 2006
($'000)
Gold and silver sales revenue
 3,256
 24,228
Total revenue excluding interest revenue
 3,256
 24,228
EBITDA
 (8,391)
 (8,909)
Net loss after tax
 (9,566)
 (14,290)
Basic earnings per share
 (4.62c)
 (9.17c)
Diluted earnings per share
 (4.62c)
 (9.17c)
Total dividends declared/proposed per share
 NIL
 NIL
Net Assets
 26,518
 18,116

The Company's financial results for the year were again severely impacted by the suspension of mining activity following the 25 April 2006 incident in the underground workings of the Beaconsfield Mine.

Earnings before interest, tax, depreciation and amortisation (EBITDA) for the year ended 30 June 2007 was a loss of $8.391 million (2006: loss of $8.909 million). The consolidated net loss after tax for the year was $9.566 million (2006: $14.290 million loss). The financial results for the current year include those of Allstate Explorations NL from the date of acquisition of that company on 30 April 2007.

Gold and silver sales revenue for the 2007 year of $3.256 million (2006: $24.228 million) reflects the cessation of ore production from April 2006 until May 2007, with limited gold production from development ore during May and June 2007.

A $7.117 million benefit was recorded during the year reflecting the changes in the mark-to-market value of the Group's gold forward sales contracts. This was partly offset by a $3.366 million loss on the close-out of gold forward sales contracts during the year. As at 30 June 2007 the Group had 47,242 ounces of spot deferred and flat forward gold sales contracts at A$638 per ounce. The mark-to-market value of the hedge book as at 30 June 2007 was negative $6.449 million.

Since December 2006 a staged recommencement of underground mining operations has been progressed following the lifting of bans imposed in April 2006 by the Chief Inspector of Mines. Ore production from development recommenced in May 2007 and the ore treatment plant was fully recommissioned with 2,860 ounces of gold poured by 30 June 2007.

Stope production from the Eastern Zone of the mine recommenced in August 2007. Subject to acceptance of the Case for Safety for the Western Zone ore production, extraction of high grade ore from that Zone is planned for late September 2007 utilising remote mining methods.


CONSOLIDATED INCOME STATEMENT
YEAR ENDED 30 JUNE 2007

CONSOLIDATED


2007

2006

Notes

$'000

$'000

Revenue

 2(a)
 3,815
 24,580

Care and maintenance, mine reopening expenses
and production costs
(13,535)
 (21,231)
Depreciation and amortisation expenses
(375)
 (4,506)
Exploration costs written off
(147)
 (619)
Finance costs
 2(b)
 (1,133)
 (441)
Other expenses
 2(c)
 (3,505)
 (2,795)
Other income
 2(d)
 1,789
 18
Net derivative gains/(losses)
 2(e)
 3,751
 (8,509)
Loss before income tax expense
(9,340)
 (13,503)
Income tax expense
(226)
 (787)

Loss after income tax
(9,566)
 (14,290)




Attributable to:


Members of the parent entity
(9,537)
 (14,290)
Minority interests
(29)
 -


(9,566)
 (14,290)



EARNINGS PER SHARE (EPS)(cents)


Basic EPS attributable to members of the parent entity
(4.62)
 (9.17)
Diluted EPS attributable to members of the parent entity
(4.62)
 (9.17)
Dividend per share (cents)
NIL
 NIL




CONSOLIDATED BALANCE SHEET

AS AT 30 JUNE 2007
CONSOLIDATED

Notes
 2007
 2006


$'000
 $'000
ASSETS


Current Assets


Cash
 9
 11,788
 8,144
Trade & other receivables
1,854
 2,784
Inventories
3,220
 909
Total Current Assets
16,862
 11,837
Non-Current Assets


Other financial assets
 4
 945
 -
Property, plant & equipment
27,367
 14,614
Exploration, evaluation & development
15,656
 4,601
Goodwill
 8
 1,891
 -
Other
474
 259
Total Non-Current Assets
46,333
 19,474
TOTAL ASSETS
63,195
 31,311
LIABILITIES


Current Liabilities


Trade & other payables
 5
 12,323
 2,656
Interest-bearing loans & borrowings
816
 416
Provisions
1,896
 962
Derivatives
6,449
 6,556
Other
701
 -
Total Current Liabilities
22,185
 10,590
Non-Current Liabilities


Payables
2,123
 227
Interest-bearing loans & borrowings
 6
 3,700
 319
Provisions
5,560
 2,059
Deferred tax
2,118
 -
Other
991
 -
Total Non-Current Liabilities
14,492
 2,605
TOTAL LIABILITIES
36,677
 13,195
NET ASSETS
26,518
 18,116
EQUITY


Share capital
 7
 106,397
 88,343
Accumulated losses
(85,268)
 (70,375)
Other reserves
5,425
 148
Minority Interests
 11
 (36)
 -
TOTAL EQUITY
26,518
 18,116



CONSOLIDATED CASH FLOW STATEMENT

YEAR ENDED 30 JUNE 2007

CONSOLIDATED


2007

2006

Notes

$'000

$'000

Cash Flows from Operating Activities


Receipts from customers
2,059
 31,107
Receipt of government grant
3,408
 -
Payments to suppliers & employees
(19,894)
 (29,261)
Net Cash Flows from/(used in) Operating Activities
 9
 (14,427)
 1,846

Cash Flows from Investing Activities


Interest received
513
 398
Proceeds from sale of fixed assets
261
 -
Acquisition of subsidiary
 8
 2,511
 -
Costs incurred on acquisition of subsidiary
 8
 (323)
Purchase of available-for-sale financial asset
(945)
Loan to Allstate group pre acquisition
(2,483)
 -
Purchase of Macquarie debt
(700)
 -
Purchase of plant & equipment
(822)
 (1,481)
Mine development & exploration expenditure
(992)
 (1,010)
Net Cash Flows from/(used in) Investing Activities
(2,980)
 (2,093)

Cash Flows from Financing Activities


Proceeds from convertible notes
4,080
 -
Proceeds from issue of shares
18,538
 7,438
Interest paid
(25)
 (11)
Other finance costs
(326)
Payment of dividends
-
 (2,298)

Payment of share issue costs
(778)
 -

Repayment of lease principal
(535)
 (609)
Proceeds from indemnities for Allstate group relating
pre acquisition activities
97
 -
Net Cash Flows from/(used in) Financing Activities
21,051
 4,520

Net Increase/(Decrease) in Cash
3,644
 4,273
Cash at Beginning of the Financial Period
8,144
 3,871

Cash at End of the Financial Period

 9
 11,788
 8,144

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

Year ended 30 June 2007

ATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT


 Issued
Capital
$’000		 Accumulated
Losses
$’000		 Cash Flow
Hedge
Reserve
$’000		 Share Based
Payment
Reserve
$’000		 Other
Reserves
$’000		 Attributable
to Equity
Holders of
Parent
$’000		 Minority
Interest
$’000		 Total
Equity
$’000
As at 1 July 2005 80,825 (53,787) (535) - - 26,503 - 26,503
Loss for the period - (14,290) - - - (14,290) - (14,290)
Issue of share capital 7,688 - - - - 7,688 - 7,688
Transaction costs (170) - - - - (170) - (170)
Dividend paid - (2,298) - - - (2,298) - (2,298)
Share based payments - - - 148 - 148 - 148
Deferred loss on cash flow hedges ** - - (8,888) - - (8,888) - (8,888)
Losses on cash flow hedges transferred to Income







Statement as part of Sales ** - - 1,879 - - 1,879 - 1,879
Deferred loss on cash flow hedges transferred to Income







Statement on cessation of hedge accounting ** - - 7,544 - - 7,544 - 7,544

As at 1 July 2006 88,343 (70,375) - 148 - 18,116 - 18,116
Loss for the period
(9,537)


(9,537) (29) (9,566)
Issue of share capital 18,538



18,538 - 18,538
Transaction costs** (484)



(484) - (484)
Acquisition of ALX Group
(5,356)

5,345 (11) (7) (18)
Put option over Minority Interest



(313) (313) - (313)
Value of conversion rights for convertible notes **



153 153 - 153
Share based payments


92
92 - 92
As at 30 June 2007 106,397 (85,268) - 240 5,185 26,554 (36) 26,518

** These amounts have been tax effected.


NOTES TO THE FINANCIAL STATEMENTS

1.
 BASIS OF PREPARATION

This preliminary final report has been prepared in accordance with the measurement and recognition requirements of Australian Accounting Standards, (including Australian Interpretations) adopted by the Australian Accounting Standards Board (AASB) and the Corporations Act 2001.

The accounting policies adopted in the preparation of the preliminary final report are consistent with those adopted and disclosed in the Consolidated Financial Report for the half year ended 31 December 2006.


CONSOLIDATED


2007
 2006


$'000
 $'000
2.
 PROFIT AND LOSS ITEMS

Loss before income tax expense includes the following revenues, income and expenses whose disclosure is relevant in explaining the performance of the consolidated entity.






(a) Revenue


Revenue from sale of gold & silver
 3,256
 24,228

Interest received
 559
 352

3,815
 24,580





(b) Finance costs


Interest expenses
 146
 21

Borrowing expenses
 149
 175

Unwind of rehabilitation provision discount
 838
 245


1,133
 441





(c) Other expenses


Royalties
 45
 399

Administration
 3,368
 2,248

Share-based payments
 92
 148


3,505
 2,795





(d) Other income


Proceeds from Beaconsfield Community Grant Fund
 1,304
 -

Profit on sale of fixed assets
 141
 -

Loan forgiven
 330
 -

Other
 14
 18


1,789
 18





(e) Net derivative gains/(losses)


Loss on close out of gold forward sales contracts during the year
 (3,366)
 (1,953)

Movement gain/(loss) in fair value of ineffective gold forward sales contracts maturing after year end
 7,117
 (6,556)


3,751
 (8,509)


3. DIVIDENDS




Cents per share
 Total amount
$'000
 Franked/
unfranked
 Date of Payment
Dividends recognised in the current year are:



2007 - Dividend paid during the year



Interim - ordinary
 Nil
 Nil
Not applicable
Subsequent events



Dividends proposed and not recognised as a liability

Since the end of the financial year, the directors declared the following dividends:



Final - ordinary
 Nil
 Nil
Not applicable





CONSOLIDATED

2007

2006

$'000

$'000
4.
OTHER FINANCIAL ASSETS

Investment in Panaegis Gold Mines Limited
945
 -
In May 2007 Beaconsfield Gold took a placement of 10.5 million fully paid ordinary shares in Panaegis Gold Mines Limited (ASX: PAU), at 9 cents per share, equal to 15% of Panaegis' issued shares before the placement.
Panaegis, which listed on the ASX in June 2006 at 20 cents per share, is focusing on sediment-hosted, sulphide-associated, finely disseminated gold deposits in central Victoria.
5.
 TRADE & OTHER PAYABLES




Current

Trade payables
 2,833
 1,375
Due to former Allstate shareholders re takeover
 918
 -
Due to Allstate's banker re acquisition of debt
 2,150
 -
Amounts paid under indemnity by Allstate's banker (pre-acquisition activities)
 4,076
 -
Other
 2,346
 1,281

12,323
 2,656
Non-current

Amounts paid under indemnity by Allstate's banker (pre acquisition activities)
 2,123
 -
Other
 -
 227

2,123
 227

CONSOLIDATED

2007

2006

$'000

$'000
6.
 INTEREST BEARING LOANS & BORROWINGS

Non-Current

Lease liabilities
 27
 319
Convertible notes
 3,673
 -

3,700
 319
On 13 February 2007, the Company announced that it had placed 12 million convertible notes at $0.34 each, for a total amount of $4.080 million, with an Australian fund, at a coupon rate of 6% p.a., payable semi-annually in arrears.
7.
 CONTRIBUTED EQUITY

Issued and paid up capital

Ordinary shares fully paid - Listed (i)
 106,379
 88,325
Partly-paid shares - Unlisted (ii)
 18
 18

106,397
 88,343
(i) Movement in ordinary shares on issue


Thousands
 $'000
At 1 July 2005
 153,021
 80,819
Issued during the year

  • Conversion of convertible notes
667
 200
  • Conversion of partly-paid
200
 70
  • Options exercised
6,500
 1,836
  • Issue to "Sophisticated Investors" - 30 June 2006
24,000
 5,520
  • Other
206
 50
Transaction costs
 -
 (170)
At 1 July 2006
 184,594
 88,325
- Issue to "Sophisticated Investors"

  • Placement 24 November 2006
27,600
 6,348
  • Placement 2 April 2007
14,250
 4,845
  • Placement 22 May 2007
14,400
 5,184
  • Share Purchase Plan
6,356
 2,161
Transactions costs (tax effected)
 -
 (484)
At 30 June 2007
 247,200
 106,379
(ii) There was no movement in partly per shares during the year

8.
 BUSINESS COMBINATION
Acquisition of Allstate Explorations NL
On 30 April 2007 Beaconsfield Gold acquired a controlling interest in Allstate Explorations NL.

The total cost of the combination was $1.868 million comprising an immediate cash payment of $0.538 million, a cash payment of $0.030 million in July 2007, a deferred cash payment of $0.888 million and costs directly attributable to the combination of $0.412 million.

The fair value of the identifiable assets and liabilities of Allstate Explorations as at the date of acquisition were:

CONSOLIDATED

Recognised on acquisition

$ ‘000
Property, plant and equipment
 12,174
Exploration, evaluation and development
 10,377
Other non-current assets
 183
Cash
 3,049
Trade & other receivables
 1,204
Inventories
 1,137
Total Assets
 28,124
Trade & other payables
 14,573
Interest bearing loans & borrowings
 538
Leave provisions
 913
Provisions for restoration costs
 2,663
Derivatives
 7,359
Deferred tax liability
 2,118

(28,164)
Fair value of identifiable net liabilities
 (40)
Share of fair value of identifiable net liabilities acquired
 (23)
Goodwill arising on acquisition
 1,891

1,868
Cost of the combination
Cash payment - April 2007
 538
- July 2007
 30
Deferred payment
 888
Transaction costs relating to the acquisition
 412
Total cost of the combination
 1,868
The cash inflow on acquisition is as follows:
Net cash acquired with the subsidiaries
 3,049
Cash paid - April 2007
 (538)
Transaction costs paid to 30 June 2007
 (323)
Net consolidated cash in flow
 2,188

From the date of acquisition, Allstate Explorations NL increased the net losses of the Group by $0.188 million (before minority interests).

The above business combination adjustments are provisional and, pursuant to Australian Standard AASB 3 "Business Combinations", may be adjusted within 12 months from the date of acquisition.

If the combination had taken place at the beginning of the financial year, the loss for the Group would have increased by $7.108 million and revenue would have increased by $2.097 million.

CONSOLIDATED



2007

2006


$'000

$'000
9.
 CASH FLOW RECONCILIATION

(a) Reconciliation of cash


Cash balances comprise:


Cash on hand
 11,788
 8,144

Closing cash balance
 11,788
 8,144




(b) Reconciliation of the Operating profit/(loss) after
tax to Net cash flows from operations:


Operating profit/(loss) after tax
 (9,566)
 (14,290)

Adjustments for:


Amortisation of non-current assets
 271
 1,424

Depreciation of non-current assets
 252
 3,257

Fair value movement on derivatives
 (7,467)
 6,556

Unwind of discount on restoration provision
 838
 245

Exploration expenditure written off
 149
 167

Share based payments
 92
 148

Bad debts written off
 14
 -

Tax expense
 226
 -

Loan for forgiven
 (330)
 -

Profit on sale of assets
 (82)
 -

Interest received - transfer to Investing Activities
 (513)
 (398)

Finance Costs - transfer of Financing Activities
 351
 11

Proceeds from the sale of assets - transfer to Investing Activities
 (59)
 -

Changes in assets and liabilities


Receivables
 2,120
 7,537

Inventories
 (1,173)
 422

Trade & other creditor & borrowings
 549
 (3,974)

Provisions
 20
 (46)

Other assets
 (119)
 787

Net cash flows from/(used) operating activities
 (14,427)
 1,846



2007
 2006
10.
 EARNINGS PER SHARE (EPS)


Basic EPS (cents)
 (4.51)
 (9.17)

Diluted EPS (cents)
 (4.51)
 (9.17)

The following reflects the income and share data used in the calculations of basic and diluted EPS:


 $'000
 $'000
Net loss used as the numerator:

- basic EPS
 (9,537)
 (14,290)
- diluted EPS
 (9,537)
 (14,290)







No of Shares
(‘000)
 No. of Shares
(‘000)
Weighted average number of ordinary shares outstanding during the year used as the denominator in calculating:

- basic EPS
 206,300
 155,905
- diluted EPS
 206,300
 155,905



11. MINORITY INTERESTS

2007
 2006
Minority interest in Allstate Exploration NL comprises:

Interest in accumulated losses at the beginning of the year
 -
 -
Add: Share of accumulated losses at date of acquisition
 (15,303)
 -
Add: Interest in loss after income tax since acquisition
 (29)
 -
Interest in accumulated losses at the end of the financial year
 (15,332)
 -



Interest in Share Capital
 7,617
 -
Interest in Business Combination Asset Revaluation Reserve
 7,679
 -
Total Minority Interest
 (36)
 -




2007
 2006
12.
 NET TANGIBLE ASSET BACKING


Net tangible asset backing per ordinary security
 $0.100
 $0.098


13. SUBSEQUENT EVENTS

On 12 July 2007, the offer extended to minority interests on 12 June 2007 for the acquisition of their interests in Allstate Exploration NL closed. During this period and up to this date, Beaconsfield Gold acquired an additional 4.15% ownership interest in Allstate Exploration NL. This increased Beaconsfield Gold's total ownership interest to 88.82%.

There are no other matters or circumstances which have arisen since 30 June 2007 that have significantly affected or may significantly affect the operations of the Consolidated Entity, the results of those operations or the state of affairs of the Consolidated Entity in subsequent financial years.


14. CONTINGENCIES

Business Interruption Claim

A number of Beaconsfield Gold group companies are pursuing a claim under their business interruption insurance policy following the 25 April 2006 incident and the temporary closure of the Beaconsfield Mine. The policy has a one month excess and is capped at $50.000 million.

To date, the insurer has refused to provide an indemnity in respect of loss resulting from the mine closure. As a result, on 14 May 2007, the Beaconsfield Gold group filed a claim in the Supreme Court of Victoria claiming damages of $45.500 million arising from the insurer's refusal to provide indemnity in breach of the terms of the policy.

The group companies have been successful in seeking a preliminary trial to determine the true construction of a clause in the policy that is considered key to the claim.


Claim Against Allstate's Previous Legal Advisor

A number of Beaconsfield Gold group companies are seeking damages for professional negligence arising from legal services provided to Allstate in relation to certain insurance and risk management issues associated with the contract for construction of the treatment plant at the Beaconsfield Mine in 1998/1999. No significant developments occurred in relation to the claim during the year.

Melick Investigation


Special investigator Greg Melick SC is finalising an independent investigation into the 25 April 2006 incident in the underground workings of the Beaconsfield Mine. The Company has continued to co-operate fully with the investigation.

On 23 April 2007, the Office of the Director of Public Prosecutions announced that it had determined, in consultation with Melick SC, that at that time there was insufficient evidence to support a prosecution on any charge. The Company understands that the report of the investigation is now expected to be completed by the end of August 2007.


Home | Corporate | Investor Centre | Media Centre | Projects | Contact Us