Gladstone Pacific Nickel Limited has announced its final results for the year ended June 30th 2011.
During 2010, while Gladstone Pacific Nickel Limited has not been able to progress the Gladstone Nickel Project as quickly as it would have wished. 2010/2011 saw a number of significant shareholder transactions and corporate developments.
August 2010
In August 2010, QNI Resources Pty Ltd made an unconditional cash offer of GBP 0.14 per share for all the ordinary shares in GPNL it did not already own. QNI received 3,899,105 acceptances in respect to their takeover bid which closed on October 25th 2010. Following this purchase, Mr Palmer and his related entities held 39,394,338 ordinary shares in the Company representing 55.53% of the ordinary shares in issue. QNI subsequently transferred its shareholding to Waratah Coal Pty Ltd a wholly owned subsidiary of Mr Clive Palmer
November 2010.
The company was unable to appoint a replacement Nominated Advisor for the purposes of the AIM Rules for Companies. Pursuant to AIM Rule 1, the Company's AIM securities were cancelled from AIM on November 24th 2010
June 2011
In June 2011, Waratah made an unconditional cash offer of AUD 0.05 per share for all the ordinary shares in GPNL it did not already own. Waratah received 589,888 acceptances in respect to their takeover bid which closed on August 1st 2011. Following this purchase, Mr Palmer and his related entities held 39,984,226 ordinary shares in the Company representing 56.37% of the ordinary shares in issue. Waratah subsequently transferred its shareholding to Fairway Coal Pty Ltd, a wholly owned subsidiary of Mr Clive Palmer.
August 2011
On August 12th 2011, the company lodged a Prospectus with ASIC for a non-renounceable rights issue to existing Shareholders on the basis of 11 new shares for every 1 share held at an issue price of USD 0.08 per new share. The amount raised by the Issue, after deducting associated costs, was to be used by the Company to undertake a variety of activities, including funding ongoing operating and legal costs, a revised drilling program and tenement acquisition program and an updated feasibility study and to fund the company's obligations under the then proposed variation of contracts to purchase land for the Project from the Queensland State Government. On August 22nd 2011, an application was made to the Takeovers Panel in Australia by a shareholder Robash Pty Ltd alleging that unacceptable circumstances had arisen in relation to the proposed issue. On September 9th 2011, the company's major shareholder, Fairway, advised GPNL they would not support the current capital raising .The prospectus was withdrawn on September 9th 2011. The Takeovers Panel declined to make a declaration of unacceptable circumstances in response to the application by Robash. The board is reviewing the group's funding requirements with a view to a capital raising later in the year to be used to undertake a variety of activities as outlined in the prospectus.
September 2011
GPNL is party to legally binding agreements with the Queensland Government to acquire land at Gladstone for its refinery and residue storage facility for AUD 33 million subject to various approval and development conditions. In September 2011 the company concluded negotiations with the relevant agencies to revise the content and timing of the development conditions applicable to the land. The detailed changes to the land agreements are set out in the Directors Report. GPNL is able to proceed with the purchase of the land at any time, subject to the availability of funds. GPNL considers that the modification of the conditions as described above is advantageous for its timetable for the development of the Project
Financial performance
The company's net loss before income tax was AUD 2,438,154, which includes an impairment loss reversal of AUD 1,105,003.
Based on movements in exchange rates affecting loan balances with the Ouinne Joint Venture, exchange losses of AUD 1,213,897 were recorded.
Interest income for the period was of AUD 591,616. Tenement Expenditure of AUD 912,966 reflects ongoing native title and tenement maintenance costs for the GNP. During 2010 additional salaries were incurred in relation to review of the Marlborough Heap leach program.
Professional Fees were AUD 470,237 reflecting costs associated with undertaking various corporate transactions. Wages and on costs were AUD 769,852. The increase during 2011 represents payments of contractual obligations for senior management.
The carrying value of the Deferred Evaluation and Exploration Expenditure asset at June 30th 2011 remains at AUD 20,048,114and reflects the historical cost of the asset after adjustment for impairment. This value does not incorporate the value of the extensive feasibility studies, environmental impact studies and development approvals which have been undertaken to facilitate project financing and development. This approach is consistent with the valuation methodology applied in 2010, having regard to the applicable accounting standards. The company, in assessing the Deferred Evaluation and Exploration Expenditure asset for impairment, has taken into consideration the Independent Expert Report which was included in the GPNL Target Statement in response to Waratah's Takeover offer.
The board would like to acknowledge the strong and continued support from all the stakeholders associated with the Gladstone Nickel Project.
