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Financial Statements

Consolidated Statements of Cash Flows - For the years ended June 30

Expressed in thousands of United States dollars

  2005 2004
OPERATING ACTIVITIES    
Net loss $ (8,965) $ (2,859)
Add (deduct) items not affecting cash:    
Depletion, amortization and depreciation 5,651 67
Equity loss (earnings) from investment in Barberton Mines Ltd (Note 5) 221 (2,068)
Gain on investment in Metorex Ltd (Note 6) (230) (180)
Gain on investment in Asia Pacific Resources Ltd (24) (601)
Gain on disposal of Seqi Olivine I/S (Note 6 (b)) (9,686) -
Gain on sale of geothermal asset (Note 6 (f)) - (985)
Stock option expense (Note 11(g)) 326 308
Other 1,259 -
Non-controlling interest (1,916) (72)
Change in non-cash operating working capital items (Note 15(a)) (1,943) 1,907
  $ (15,307) $ (4,483)
 
FINANCING ACTIVITIES    
Net proceeds on new bonds 23,380 -
Net proceeds on convertible bonds - 16,659
Issuance of share purchase warrants (Note 11 (e)) - 78
Issuance of common share for cash 22,306 2,104
Repayments of amount due from Metorex Ltd 422 76
Others 343 -
Dividends received 389 40
  46,840 18,957
 
INVESTING ACTIVITIES    
Proceeds on disposal of investment in Metorex Ltd 2,139 1,326
Proceeds on disposal of investment in Asia Pacific resources Ltd 66 1,846
Proceeds on disposal of Seqi Olivine I/S (Note 6 (b)) 9,686 -
Proceeds on disposal of geothermal asset (Note 6 (f)) - 173
Expenditures on Nalunaq mineral property, plant & equipment (Note 3) (7,117) (20,343)
Security deposit for mine closure costs (Note 3) (12) (442)
Expenditures on other mineral property interests (Note 6) (312) (742)
Other (341) 729
  4,109 $ (17,453)
 
EFFECT OF FOREIGN EXCHANGE TRANSLATION ON CASH AND CASH EQUIVALENTS 163 -
NET CASH INFLOW (OUTFLOW) 35,805 (2,979)
CASH, BEGINNING OF YEAR 1,994 4,973
 
CASH, END OF YEAR $ 37,799 $ 1,994
 
SUPPLEMENTAL CASH FLOW INFORMATION (Note 15)    
 
See accompanying Notes to the Consolidated Financial Statements.

 

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