GGG Resources plc
AIM : GGG

GGG Resources plc

March 31, 2011 08:50 ET

GGG Resources plc: Results for Year Ended 31 December 2010

Notice of Annual General Meeting

LONDON, UNITED KINGDOM--(Marketwire - March 31, 2011) - Western-Australian mining exploration and development company GGG Resources plc (the "Company" or "GGG") (AIM:GGG) today announces its audited results for the year ended 31 December 2010.

Operational and Financial Highlights:

  • Purchased 50% of Bullabulling Project for A$1.9 million and A$600,000 replacement bond.
  • Completed initial Bullabulling JORC resource update of 41.5 Mt @ 1.5 g/t Au (approximately 2 million ounces), an upgrade of 450%.
  • Started resource definition drilling and feasibility study at Bullabulling.
  • Raised over £1.1 million from two resource specialist funds and Directors in July 2010, and raised £7.5 million from UK institutions in November 2010.
  • Appointed Michael Short to the Board of Directors.
  • Changed the Company name to GGG Resources plc and underwent a 1:2 Share Capital consolidation
  • Repatriated a total of US$4.2 million from China from the proceeds of the Nimu sale, with the balance expected in 2011.
  • Group cash balances as at 31 December 2010 were £10,784,896.
  • Commenced work on ASX dual listing

After Year End Events:

  • On 14 March 2011 the Company announced its intention to make an off-market scrip offer for the entire issued share in Auzex Resources Limited that it does not own. The Offer is for seven GGG Shares for every five Auzex shares held, valuing Auzex at approximately A$ 94.9 million – a 39.3% premium to the Auzex's closing share price on 11 March 2011. If the takeover is successful it will consolidate the ownership of the Bullabulling Gold Project into a single merged entity. The Company is applying for listing on the Australian Stock Exchange which, if successful, will give the Company dual-listed status and access to capital markets in the United Kingdom and Australia.

  • On 16 March 2011 the Company announced the appointment of David McArthur as its Finance Director and the opening of the Perth office. David will be part of the growing Perth-based team to advance the Bullabulling Gold Project.

  • On 24 March 2011, announced a new technical committee formed to oversee the building of the new Bullabulling mine, and the appointment of consultant mining engineers John Barton and Mark Pit. 

The annual report and financial statements together with the Notice of AGM and Proxy form will be despatched to shareholders shortly. The Annual General Meeting will be held at the Andaz Hotel, 40 Liverpool Street, London, EC2M 7QN on Thursday 28 April at 11:00am.

Additional copies of the Annual Report and Accounts, Notice of AGM and Proxy Form may be requested directly from the Company and will be available following distribution to shareholders on the Company's website www.gggresources.com.

Dr. Peter Ruxton, Chairman of GGG Resources plc, commented:

"This has been a very encouraging year characterised by strong progress both geologically and corporately. As we look forward into 2011, we are a fully funded company with Bullabulling set to grow beyond 2 million ounces and feasibility in progress. I look forward to updating all shareholders with progress throughout the year."

CHAIRMAN'S STATEMENT

Dear Shareholders

I am very pleased to be writing my second Chairman's Statement, and reviewing a year that has seen your Company make considerable progress.

In last year's statement I outlined our objective of generating real shareholder wealth by creating a robust exploration and mining company. To achieve this, in February 2010 we signed an option to acquire 50% of the Bullabulling Project in Western Australia which, following detailed due diligence, we exercised in April.

As you are aware, the Bullabulling Project aims to re-open a former working open pit gold mine in the Coolgardie goldfields of Western Australia. From our work to date, we have every confidence that Bullabulling is a company-making deposit and has the potential to be a corner stone project from which a robust exploration and mining company can be built. When we purchased Bullabulling we estimated that the project may grow to over 1 million ounces. I am pleased to report that in the August JORC resource estimation, the Inferred Resource of Bullabulling is estimated to be approximately 2 million ounces at a 0.7g/t gold cut-off. And yet the project still has much potential to grow further along strike, in width and at depth.

In view of the decision to accelerate the development of the Bullabulling project, the Company chose not to exercise its option on the Cikoleang gold property in Indonesia, given its early stage status, and the greater promise in Western Australia. 

Throughout 2010, our work on Bullabulling focused on building the understanding of the potential of the deposit, growing its resources, moving it closer to feasibility and establishing the building blocks to bring the deposit back into production in 2013.

In 2010, from a technical perspective, we were able to put together an extensive historical database of over 12,000 drill holes drilled by previous owners of Bullabulling and reviewed the record of the past mining operation. Using this database we produced a geological model of the deposit. In July we drilled seven diamond drill holes the results of which clearly validated the model. The new database was used for an initial JORC estimation resulting in an approximately 2 million ounces Inferred Resource (41.5 Mt @ 1.5 g/t Au at 0.7 g/t Au cut-off grade). In November we embarked on a 30,000 metres reverse circulation resource definition drilling programme and I am pleased to report that the results so far show that approximately 80% of the data equals or betters the predicted result from our geological model. Feasibility work is advancing well with metallurgical drilling and initial assessment of water and power availability completed. An initial estimation of optimum plant capacity, capital costs and operational costs is on the way.

In parallel with the technical aspect, we are also building our team and our financing capabilities. In June we appointed Michael Short to our Board of Directors. Michael is a Civil Engineer specialising in project development, who runs GBM Engineering and has a huge experience in project feasibility and construction. During the year we also opened our office in Perth, Western Australia and appointed David McArthur as our Australian Chief Financial Officer. David has extensive corporate finance experience and was the Financial Director of Dioro Exploration NL who operated the Frog's Leg gold mine just to the North East of Bullabulling.

On the financial side, in July we raised just over £1.1 million from two specialist mining funds and our own directors. We then appointed Collins Stewart Europe as our UK broker in September. In October we appointed Morgan Stanley Smith Barney as our Australian broker and embarked on a dual-listing process on the Australian Stock Exchange. In November we further strengthened the Company's balance sheet by raising £7.5 million mainly from UK institutions. A full prospectus for the ASX listing was submitted in January and by the end of the month we raised A$ 9 million in an over-subscribed issue conditional upon admission to the ASX. The ASX process for listing is ongoing and we have submitted supplementary prospectus with a view to completing the dual listing.

As we look forward into 2011, we are a fully funded company with Bullabulling set to grow beyond 2 million ounces and feasibility in progress. I look forward to updating all shareholders with progress throughout the year.

In closing I would like to take this opportunity to thank my fellow Directors and staff. But mostly I would like to thank you the Shareholders who have shown confidence in the Company and the Board. We look forward to delivering what your sustained support deserves.

Dr. Peter Ruxton

Chairman

CONSOLIDATED INCOME STATEMENT
Year ended 31 December 2010
  Note   1 Jan
to
 31 Dec
2010
£
  1 Jan
to
 31 Dec
2009
£
 
             
CONTINUING OPERATIONS            
Administrative expenses     (778,166 ) (555,300 )
             
OPERATING LOSS 3   (778,166 ) (555,300 )
Gain (loss) on disposal of marketable securities     8,196   -  
Finance income     79,118   7,361  
             
LOSS BEFORE TAX     (690,852 ) (547,939 )
Tax 8   (10,986 ) -  
             
LOSS FROM CONTINUING OPERATIONS     (701,838 ) (547,939 )
             
DISCONTINUED OPERATIONS            
Loss from discontinued operations (net of tax) 4   -   (1,171,142 )
             
LOSS FOR THE FINANCIAL PERIOD 7   (701,838 ) (1,719,081 )
             
ATTRIBUTABLE TO THE EQUITY HOLDERS OF THE PARENT     (701,838 ) (1,719,081 )
             
BASIC LOSS PER SHARE 9   (0.006 ) (0.010 )
 
 
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Year ended 31 December 2010
  Note 1 Jan
to
 31 Dec
2010
£
    1 Jan
to
 31 Dec
2009
 £
 
             
OTHER COMPREHENSIVE INCOME            
Foreign currency translation differences – foreign operations   31,002     (751,001 )
Change in fair value of available-for-sale financial assets   2,089,138     -  
             
OTHER COMPREHENSIVE INCOME FOR THE YEAR RECOGNISED DIRECTLY IN EQUITY   2,120,140     (751,001 )
Loss for the year   (701,838 )   (1,719,081 )
             
             
TOTAL COMPREHENSIVE INCOME (LOSS) FOR THE YEAR   1,418,302     (2,470,082 )
             
ATTRIBUTABLE TO THE EQUITY HOLDERS OF THE PARENT   1,418,302     (2,470,082 )
             

Under IAS 1 (revised) the Group has included a consolidated statement of comprehensive income and expense for the year ended 31 December 2010 and 2009. This revision has no impact on the balance sheet for 2010, 2009 or 2008. The 2008 balance sheet is available in the 2009 annual report, which is available on the Company's website, www.gggresources.com, under the section headed investors and media.

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
31 December 2010
 
  Note   2010
£
  2009
£
 
             
NON-CURRENT ASSETS            
Intangible assets 10   2,011,385   -  
Investment in available for sale asset 12   3,080,396   -  
             
      5,091,781   -  
             
CURRENT ASSETS            
Other receivables 13   467,714   2,296,578  
Cash and cash equivalents     10,784,896   3,762,442  
             
      11,252,610   6,059,020  
             
TOTAL ASSETS     16,344,391   6,059,020  
             
             
EQUITY            
Share capital 16   2,908,472   1,833,672  
Share premium account 17   15,944,385   8,213,120  
Warrant reserve 17   52,585   492,329  
Share option reserve 17   345,799   267,418  
Translation reserve 17   754,336   723,334  
Available for sale asset reserve 17   2,089,138   -  
Retained losses 17   (6,318,282 ) (6,195,834 )
             
EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT     15,776,433   5,334,039  
             
             
TOTAL EQUITY     15,776,433   5,334,039  
             
CURRENT LIABILITIES            
Other payables 14   567,958   724,981  
             
TOTAL EQUITY AND LIABILITIES     16,344,391   6,059,020  
             

These financial statements were approved by the Board of Directors and authorised for issue on 30 March 2011.

Signed on behalf of the Board of Directors

P McGroary
Director
 
Company Number:
05277251
 
 
COMPANY STATEMENT OF FINANCIAL POSITION
31 December 2010
  Note   2010
£
  2009
£
 
             
NON-CURRENT ASSETS            
Investments in subsidiaries 11   333,737   333,736  
Other intangible assets     2,011,385   -  
Investment in available for sale asset 12   3,080,396   -  
             
      5,425,518   333,736  
CURRENT ASSETS            
Other receivables 13   2,502,050   3,942,136  
Cash and cash equivalents     8,194,954   497,538  
             
      10,697,004   4,439,674  
             
TOTAL ASSETS     16,122,522   4,773,410  
             
             
EQUITY            
Share capital 16   2,908,472   1,833,672  
Share premium account 17   15,944,385   8,213,120  
Warrant reserve 17   52,585   492,329  
Share option reserve 17   345,799   267,418  
Available for sale asset reserve 17   2,089,138   -  
Retained losses 17   (5,738,500 ) (6,079,880 )
             
TOTAL EQUITY     15,601,879   4,726,659  
             
CURRENT LIABILITIES            
Other payables 14   520,643   46,751  
             
TOTAL EQUITY AND LIABILITIES     16,122,522   4,773,410  
             

These financial statements were approved by the Board of Directors and authorised for issue on 30 March 2011.

Signed on behalf of the Board of Directors

P McGroary
Director
 
 
STATEMENT OF CHANGES IN EQUITY
Year ended 31 December 2010
  1 Jan
to
 31 Dec
2010
£
  1 Jan
to
 31 Dec
2009
£
 
         
GROUP        
         
Opening balance 5,334,039   7,578,603  
Loss for financial period (701,838 ) (1,719,081 )
New equity share capital subscribed 1,074,800   378,333  
Premium on new equity share capital subscribed 7,731,265   107,200  
Value attributed to warrants granted 52,585   -  
Value attributed to share options granted 165,442   12,664  
Available for sale asset reserve 2,089,138   -  
Translation reserve 31,002   (751,001 )
Minority Interest -   (272,679 )
         
Closing balance 15,776,433   5,334,039  
         
         
COMPANY 1 Jan
to
 31 Dec
2010
£
  1 Jan
to
 31 Dec
2009
£
 
         
Opening balance 4,726,659   5,571,330  
Loss for financial period (238,010 ) (1,342,868 )
New equity share capital subscribed 1,074,800   378,333  
Premium on new equity share capital subscribed 7,731,265   107,200  
Value attributed to warrants granted 52,585   -  
Value attributed to share options granted 165,442   12,664  
Available for sale asset reserve 2,089,138   -  
         
Closing balance 15,601,879   4,726,659  
         
 
 
CONSOLIDATED CASH FLOW STATEMENT
Year ended 31 December 2010
  1 Jan
to
 31 Dec
 2010
£
  1 Jan
 to
31 Dec
 2009
£
 
         
Loss for the period (701,838 ) (1,719,081 )
Depreciation -   6,175  
Profit on disposal of marketable securities (8,196 ) -  
Loss on disposal of discontinued operations, net of tax -   1,171,142  
Stock option expense 218,027   12,664  
Tax expense 10,986   -  
Finance income (79,118 ) (7,361 )
Change in receivables and other current assets – (Increase) / Decrease 1,828,864   3,741,102  
Change in payables – Increase / (Decrease) (157,023 ) (3,272,456 )
         
  1,111,702   (67,815 )
Effect of foreign exchange translation (525,236 ) (680,870 )
Tax paid on disposal of discontinued operations by foreign subsidiary (10,986 ) (682,619 )
         
NET CASH USED IN OPERATING ACTIVITIES 575,480   (1,431,304 )
         
INVESTING ACTIVITIES        
Proceeds on disposal of discontinued operations -   4,726,095  
Proceeds on disposal of marketable securities 8,196   -  
Acquisitions of other intangible assets (2,011,385 ) (88,842 )
Investment in available for sale asset (429,460 ) -  
Interest received 79,118   7,361  
         
NET CASH USED IN INVESTING ACTIVITIES (2,353,531 ) 4,644,614  
         
         
FINANCING ACTIVITIES        
Issue of equity share capital 934,350   378,333  
Share premium on issue of equity share capital 7,690,650   129,167  
Share issue costs (380,733 ) (21,966 )
         
NET CASH FROM FINANCING ACTIVITIES 8,244,267   485,534  
         
NET (DECREASE) / INCREASE IN CASH AND CASH EQUIVALENTS 6,466,216   3,698,844  
         
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 3,762,442   63,598  
Effect of exchange rate on cash held 556,238   -  
         
CASH AND CASH EQUIVALENTS AT END OF PERIOD 10,784,896   3,762,442  
         

NOTES TO THE FINANCIAL STATEMENTS 

Year ended 31 December 2010

1. BASIS OF PREPARATION AND ACCOUNTING POLICIES

General information

GGG Resources plc is a Company incorporated and domiciled in England and Wales. The address of the registered office is given on the website. The nature of the Group's operations and its principal activities are set out in the Directors' report.

These financial statements are presented in pounds sterling because that is the currency of the parent Company of the Group. Foreign operations are included in accordance with the policies set out in this note.

a) Basis of preparation

GGG Resources plc was incorporated on 3 November 2004.

These financial statements have been prepared on a going concern basis which presumes the realisation of assets and discharge of liabilities in the normal course of business. The Group has no operating revenues (2009 – nil). The Group's ability to continue as a going concern is dependent on the Group's ability to ultimately attain profitable operations.

The financial statements have been prepared in accordance with International Financial Reporting Standards as adopted by the European Union and as applied in accordance with the provisions of the Companies Act 2006. The principal accounting policies adopted are set out below. These consolidated financial statements have been prepared on the historical cost basis, except for the following material item:

Available for sale assets are measured at fair value.

b) Basis of consolidation

The consolidated financial statements incorporate the financial statements of the Company and entities controlled by the Company (its subsidiaries). Control is achieved where the Company has the power to govern the financial and operating policies of an investee entity so as to obtain benefits from its activities.

Minority interests in the net assets of consolidated subsidiaries are identified separately from the Group's equity therein. Minority interests consist of the amount of those interests at the date of the original business combination (see below) and the minority's share of changes in equity since the date of the combination. Losses applicable to the minority in excess of the minority's interest in the subsidiary's equity are allocated against the interests of the Group except to the extent that the minority has a binding obligation and is able to make an additional investment to cover the losses.

The results of subsidiaries acquired or disposed of during the year are included in the consolidated income statement from the effective date of acquisition or up to the effective date of disposal, as appropriate.
Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by the Group.

All intra-Group transactions, balances, income and expenses are eliminated on consolidation.

c) Business combinations

The acquisition of subsidiaries is accounted for using the purchase method. The cost of the acquisition is measured at the aggregate of the fair values, at the date of exchange, of assets given, liabilities incurred or assumed, and equity instruments issued by the Group in exchange for control of the acquiree, plus any costs directly attributable to the business combination. The acquiree's identifiable assets, liabilities and contingent liabilities that meet the conditions for recognition under IFRS 3 "Business Combination" are recognised at their fair value at the acquisition date, except for non-current assets (or disposal Groups) that are classified as held for resale in accordance with IFRS 5 "Non-Current Assets held for Sale and Discontinued Operations" which are not recognised and measured at fair value less costs to sell.

Goodwill arising on acquisition is recognised as an asset and initially measured at cost, being the excess of the cost of the business combination over the Group's interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised. If, after reassessment, the Group's interest in the net fair value of the acquiree's identifiable assets, liabilities and contingent liabilities exceeds the cost of the business combination, the excess is recognised immediately in profit or loss.

The interest of minority shareholders in the acquiree is initially measured at the minority's proportion of the net fair value of the assets, liabilities and contingent liabilities recognised.

d) Goodwill

Goodwill arising on consolidation represents the excess of the cost of acquisition over the Group's interest in the fair value of the identifiable assets and liabilities of a subsidiary, at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less any accumulated impairment losses. Goodwill which is recognised as an asset is reviewed for impairment at least annually. Any impairment is recognised immediately in profit or loss and is not subsequently reversed.

For the purpose of impairment testing, goodwill is allocated to each of the Group's cash-generating units expected to benefit from the synergies of the combination. Cash-generating units to which goodwill has been allocated are tested for impairment annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit. An impairment loss recognised for goodwill is not reversed in a subsequent period.

On disposal of a subsidiary, the attributable amount of goodwill is included in the determination of the profit or loss on disposal.

e) Other intangible assets

Exploration and evaluation expenditure comprises costs which are directly attributable to the acquisition of exploration licenses and subsequent exploration expenditures.

Exploration and evaluation expenditure is carried forward as an asset provided that one of the following conditions is met:

(i) Such costs are expected to be recouped in full through successful development and exploration of the area of interest or alternatively, by its sale;
 
(ii) Exploration and evaluation activities in the area of interest have not yet reached a stage which permits a reasonable assessment of the existence of economically recoverable reserves and active and significant operations in relation to the area are continuing, or planned for the future.

Identifiable exploration and evaluation assets acquired are recognised as assets at their cost of acquisition. An impairment review is performed when facts and circumstances suggest that the carrying amount of the assets may exceed their recoverable amounts. Exploration assets are reassessed on a regular basis and these costs are carried forward provided that at least one of the conditions outlined is met. Exploration rights are amortised over the useful economic life of the mine to which it relates, commencing when the asset is available for use.

Expenditure on research activities is recognised as an expense in the period in which it is incurred.

f) Property, plant and equipment

Property, plant and equipment is stated at cost less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

Depreciation is charged so as to write off the cost, less estimated residual value on assets other than land, over their estimated useful lives, using the reducing balance method, on the following bases:

Fixtures and equipment 20-30%

The gain or loss arising on the disposal or retirement of an asset is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognised in income.

g) Impairment of tangible and intangible assets excluding goodwill

At each balance sheet date, the Group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where the asset does not generate cash flows that are independent from other assets, the Group estimates the recoverable amount of the cash-generating unit to which the asset belongs. 

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to the present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised as an expense immediately, unless the relevant asset is carried at a re-valued amount, in which case the impairment loss is treated as a revaluation decrease.

Where an impairment loss subsequently reverses, the carrying amount of the asset (cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (cash-generating unit) in prior years. A reversal of an impairment loss is recognised as income immediately, unless the relevant asset is carried at a re-valued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

h) Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable losses for the period. Taxable loss differs from net loss as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The Group's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the balance sheet date.

Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary differences arise from the initial recognition of goodwill or from the initial recognition (other than in a business combination) of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

Deferred tax liabilities are recognised for taxable temporary differences arising on investments in subsidiaries and associates, and interests in joint ventures, except where the Group is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future.

The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when they relate to income taxes levied by the same taxation authority and the Group intends to settle its current tax assets and liabilities on a net basis.

i) Financial instruments

Financial assets and financial liabilities are recognised on the Group's balance sheet when the Group becomes a party to the contractual provisions of the instrument. 

Trade receivables

Trade receivables are measured at initial recognition at fair value, and are subsequently measured at amortised cost using the effective interest rate method. Appropriate allowances for estimated irrecoverable amounts are recognised in the income statement when there is objective evidence that the asset is impaired. The allowance recognised is measured as the difference between the asset's carrying amount and the present value of estimated future cash flows discounted at the effective interest rate computed at initial recognition.

Cash and cash equivalents

Cash and cash equivalents comprises cash in hand and demand deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value.

Financial liabilities and equity

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Group after deducting all of its liabilities. 

Trade payables

Trade payables are initially measured at fair value, and are subsequently measured at amortised cost, using the effective interest rate method.

Equity instruments

Equity instruments issued by the Company are recorded at the proceeds received, net of direct issue costs. 

j) Available for sale financial assets

Available for sale financial assets are those non-derivative financial assets, principally equity securities that are designated as available for sale. After initial recognition, available for sale securities are measured at fair value with gains and losses being recognised in other comprehensive income and as a separate component of equity until the investment is derecognised or until the investment is determined to be impaired, at which time the cumulative gain or loss previously reported in equity is recognised in profit or loss.

The fair value of investments that are actively traded in organised financial markets are determined by reference to quoted market bid prices at the close of business on the balance sheet date. For investments with no active market, fair values are determined using valuation techniques.

k) Foreign currencies

The individual financial statements of each Group Company are presented in the currency of the primary economic environment in which it operates (its functional currency). For the purpose of the consolidated financial statements, the results and financial position of each Group Company are expressed in pounds sterling, which is the functional currency of the Company, and the presentation currency for the consolidated financial statements. 
In preparing the financial statements of the individual entities, transactions in currencies other than the entity's functional currency (foreign currencies) are recorded at the rates of exchange prevailing on the dates of the transactions. At each balance sheet date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the balance sheet date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing on the date when the fair value was determined. Non-monetary items that are measured in terms of historical cost in a foreign currency are not translated. 

Exchange differences arising on the settlement of monetary items, and on the retranslation of monetary items, are included in profit or loss for the period. Exchange differences arising on the retranslation of non-monetary items carried at fair value are included in the profit and loss account for the period except for differences arising on the retranslation of non-monetary items in respect of which gains and losses are recognised directly in equity. For such non-monetary items, any exchange component of that gain or loss is also recognised directly in equity. 

For the purpose of presenting consolidated financial statements, the assets and liabilities of the Group's foreign operations are translated at exchange rates prevailing on the balance sheet date. Income and expense items are translated at the average exchange rates for the period, unless exchange rates fluctuated significantly during that period, in which case the exchange rates at the dates of the transactions are used. Exchange differences arising, if any, are classified as equity and transferred to the Group's translation reserve. Such translation differences are recognised in the income statement in the period in which the foreign operation is disposed of.

Goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as assets and liabilities of the foreign entity and translated at the closing rate.

l) Critical accounting judgements

In the process of applying the Group's accounting policies, which are described above, the Directors have made the following judgements that have the most significant effect on the amounts recognised in the financial information.

Valuation of share options issued and ordinary shares issued as consideration (note 17).

m) Joint venture arrangement

The Company is a party to a joint venture arrangement in relation to the Bullabulling Project with Auzex Resources Limited. The consolidated financial statements include the assets that were acquired on exercise of the option to acquire 50% of the project and the expenses that the Group incurred of its share of the joint operation.

2. BUSINESS AND GEOGRAPHICAL SEGMENTS

For management purposes, the Group has one business segment - mining and exploration.

3. OPERATING LOSS

  1 Jan
to
 31 Dec
2010
£
  1 Jan
to
 31 Dec
2009
£
 
Operating loss is stated after charging/(crediting)        
Auditor's remuneration - as auditors 29,335   20,000  
Profit on disposal of marketable securities (8,196 ) -  
Stock option expense 218,027   12,664  
Foreign exchange gain (617,725 ) (107,466 )
Depreciation of tangible assets -   6,175  
         
The analysis of auditors' remuneration is as follows:        
Fees payable to the Company's auditors for the audit of Company's accounts
23,000
 
20,000
 
Fees payable to the Company's auditors for taxation services 1,668   -  
Fees payable to the Company's auditors for interim accounts review 3,231   -  
The audit of the Company's subsidiaries* 1,436   -  
         
Total audit fees 29,335   20,000  
         
 
* The audit of Zhongcheng Limited, was carried out by the subsidiaries' local auditor in the People's Republic of China.

4. DISCONTINUED OPERATIONS

    Disposal of
Lhasa Tianli
Mining
Company Ltd
    Disposal
of CCG
Mining Ltd
  TOTAL
 
    1 Jan
to
 31 Dec
2010
£
  1 Jan
 to
 31 Dec
 2009
£
    1 Jan
to
 31 Dec
 2010
£
  1 Jan
to
 31 Dec
 2009
£
  1 Jan
to
 31 Dec
 2010
 £
  1 Jan
to
 31 Dec
 2009
£
 
Results of discontinued operations                            
Results from operating activities   -   (23,615 )   -   (183,079 ) -   (206,694 )
Gain / (loss) on disposal of discontinued operation   -   116,567     -   (398,396 ) -   (281,829 )
Income tax on gain on disposal of discontinued operation (see note 8)   -   (682,619 )   -   -   -   (682,619 )
                             
Profit/(loss) for the period   -   (589,667 )   -   (581,475 ) -   (1,171,142 )
                             
Effect of disposal on the financial position of the Group                            
Property, plant and equipment   -   (47,564 )   -   (673 ) -   (48,237 )
Intangible fixed assets   -   (6,806,742 )   -   (479,572 ) -   (7,286,314 )
Minority interest   -   (38,633 )   -   (38,952 ) -   (77,585 )
Exchange difference   -   164     -   (57,671 ) -   (57,507 )
Trade and other receivables   -   (4,819 )   -   (3,165 ) -   (7,984 )
Cash and cash equivalents   -   (323 )   -   (827 ) -   (1,150 )
Trade and other payables   -   5,391     -   182,463   -   187,854  
                             
Net assets and liabilities   -   (6,892,526 )   -   (398,397 ) -   (7,290,923 )
                             
                             
Consideration received, satisfied in cash   -   (7,009,093 )   -   (1 ) -   (7,009,094 )
Cash disposed of   -   323     -   827   -   1,150  
                             
Net cash (inflow) / outflow   -   (7,008,770 )   -   826   -   (7,007,944 )
                             

5. STAFF COSTS

Staff costs of the Group and Company were:



Group
1 Jan
to
31 Dec
 2010
 £
1 Jan
to
 31 Dec
2009
£
     
Wages and salaries 168,229 114,541
Social Security Costs 11,576 10,798
Share based payments 158,678 12,664
     
  338,483 138,003
     
Average number of employees 3 7
     
Company 1 Jan
to
 31 Dec
2010
£
1 Jan
to
 31 Dec
2009
£
     
Wages and salaries 95,000 78,843
Social Security Costs 11,429 8,954
Share based payments 158,678 12,664
     
  265,107 100,461
     
Average number of employees 1 2
     

6. DIRECTORS' EMOLUMENTS

Details of the Directors' emoluments are included in the remuneration report on annual report.

7. LOSS ATTRIBUTABLE TO MEMBERS OF THE PARENT COMPANY

The loss dealt with in the financial statements of the parent Company was £238,010 (2009 - £1,342,868).

8. TAX

  1 Jan
to
 31 Dec
 2010
£
1 Jan
to
 31 Dec
 2009
£
     
Current tax - -
Deferred tax - -
Foreign withholding tax 10,986 -
     
Tax on continuing operations 10,986 -
Foreign tax on discontinued operation (see note 4) - 682,619
     
Tax expense for the year 10,986 682,619
     

Until it is probable that sufficient taxable profits will be available to allow all or partial recovery of deferred tax assets of £1,815,796 (2009 - £1,624,282), the accounting benefit of tax losses will not be reflected in the accounts.

The charge for the year can be reconciled to the loss per the income statement as follows:

  1 Jan
 to
31 Dec
 2010
£
  1 Jan
to
 31 Dec
2009
£
 
         
Loss for the year (690,852 ) (1,036,462 )
         
Tax at the UK corporation tax rate of 28% (2008 - 30%) (193,438 ) (290,209 )
Effect of tax rules in foreign jurisdictions 10,986   682,619  
Non-deductible expenses 1,924   136  
Current year losses for which no deferred tax asset recognised 191,514   290,073  
         
Tax expense for the year 10,986   682,619  
         

9. LOSS PER SHARE

a) Basic loss per share

Basic loss per share is calculated by dividing the profit for the year by the weighted average number of shares in issue during the year. The weighted average number of shares used is 108,246,657 (2009 - 178,509,200).

b) Diluted loss per share

International Accounting Standard 33 requires presentation of diluted earnings per share when a Company could be called upon to issues shares that would decrease the net profit or increase the net loss per share. For a loss making Company with outstanding options, net loss per share would only be increased by the exercise of out-of-money options. Since it seems inappropriate to assume that option holders would exercise out-of-money options, no adjustment has been made to diluted loss per share for out-of-money share options.

c) Headline loss per share

The Group presents an alternative measure of loss per share after excluding all capital gains and losses from the loss attributable to ordinary shareholders. The impact of this is as follows:

 
2010
  2009  
         
Basic        
Loss per share (0.006 ) (0.010 )
Effect of loss on disposal of discontinued operations -   0.007  
         
Adjusted loss per share (0.006 ) (0.003 )
         

In December 2010, the equity share capital of the company was consolidated on a 1:2 basis. The 2009 basic and headline loss per share, taking this into account, was £0.020 and £0.006 respectively.

10. INTANGIBLE FIXED ASSETS

For the year ended 31 December 2010

Group and Company
 Deferred
Exploration
Costs
£
Cost and carrying amount  
At 1 January 2010 -
Additions 2,011,385
Disposals -
Impairment charge for the year -
Effect of foreign exchange translation -
   
At 31 December 2010 2,011,385
   

11. INVESTMENT IN SUBSIDIARIES

For the year ended 31 December 2010

Company Year ended
31 Dec
2010
£
Year ended
31 Dec
2009
£
 
       
Cost and carrying amount      
Opening balance 333,736 370,370  
Additions 1 -  
Disposals - (36,634 )
       
Closing balance 333,737 333,736  
       
Net book value      
Closing balance 333,737 333,736  
       

The investments represent the whole of the share capital of:

(i) Nexon Asia Group Limited is registered in the British Virgin Islands. At 31 December 2010 it had capital and reserves of £1,081,174 (2009 – £1,041,576) and for 2010 made a loss of £980 (2009 – (£93,895)).
 
(ii) Central China Minerals Limited is registered in the British Virgin Islands. At 31 December 2010 it had capital and reserves of £1 (2009 – £1) and for 2010 made a loss of nil (2009 – nil).
 
(iii) CCG Copper Limited (BVI) is registered in the British Virgin Islands. At 31 December 2010 it had consolidated capital and reserves of (£1,520,195) (2009 – (£890,015)) and for 2010 made a loss of £461,509 (2009 – £989,911).
 
(iv) GGG Mining, formerly CCG Xinjiang Limited (BVI) is registered in the British Virgin Islands. At 31 December 2010 it had capital and reserves of (£2,358) (2009 – (£922)) and for 2010 made a loss of £1,405 (2009 – £939).
 
(v) CCG Korea Limited is registered in the British Virgin Islands. At 31 December 2010 it had capital and reserves of (£1,706) (2009 - (£1,644)) and for 2010 made a loss of nil (2009 – £1,673).
 
(vi) United Kingdom Central China Goldfields plc Beijing Representative Office (CCG Beijing) is registered in the People's Republic of China and is treated as an office of Central China Goldfields plc and not as a separate subsidiary.
 
(vii) Chengdu Zhongcheng Mining Technology Development Company Limited, wholly-owned by CCG Copper Limited, is registered in the People's Republic of China. At 31 December 2010 it had capital and reserves of £919,743 (2009 – £3,156,948) and for 2010 made a loss of £704,000 (2009 – profit of £2,287,612).
 
(viii) GGG Australia Pty Ltd, wholly-owned by GGG Resources plc, is registered in Western Australia. At 31 December 2010 is had capital and reserves of (£169) (2009 – nil) and for 2010 made a loss of £160 (2009 – nil).

12. AVAILABLE FOR SALE FINANCIAL ASSETS

For the year ended 31 December 2010

Listed investment  
Group and Company Year ended
31 Dec
2010
£
   
Cost and carrying amount  
Opening balance -
Additions 991,258
Disposals -
Fair value adjustment 2,089,138
Effect of foreign exchange translation -
   
Closing balance 3,080,396
   
Net book value  
Closing balance 3,080,396
   

The investment represents 8.44% interest in Auzex Resources Limited, a company listed on the Australian Securities Exchange.

13. OTHER RECEIVABLES

  Group
2010
£
Group
2009
£
Company
2010
£
Company
2009
£
         
Receivables due from Group undertakings - - 2,062,525 3,927,407
Bullabulling environmental bond 398,327 - 398,327 -
Prepayments and other receivables 69,387 2,296,578 41,198 14,729
         
  467,714 2,296,578 2,502,050 3,942,136
         

Included in prepayments and other receivables of the Group at 31 December 2009, was £2,281,849 receivable from the sale of the Nimu project (RMB 24,850,000).

14. OTHER PAYABLES

  Group
2010
£
Group
 2009
£
Company
2010
£
Company
2009
£
         
Trade payables 101,294 25,025 53,979 18,707
Non-trade payables and accrued expenses 466,664 699,956 466,664 28,044
         
  567,958 724,981 520,643 46,751
         

Included in non-trade payables and accrued expenses of the Group at 31 December 2009, was £671,912 being a tax liability in Chengdu Zhongcheng Mining Technology Development Company Limited on its recognised gain on disposal of its subsidiary, Lhasa Tianli Mining Company Limited.

15. RELATED PARTY TRANSACTIONS

No individual party had overall control of the Company or Group during the period and no transactions were undertaken with related parties, neither during the current nor comparative financial years, being of a nature requiring disclosure under IFRS's.

16. SHARE CAPITAL

    2010   2009
  No. £ No. £
Called up, allotted and fully paid        
Ordinary shares of £0.01 each - - 183,367,191 1,833,672
Ordinary shares of £0.02 each 145,423,590 2,908,472 - -
         

Equity Share Capital Consolidation

In December 2010, the equity share capital of the company was consolidated on a 1:2 basis.

Issue of shares

(i) In February 2010, 14,044,944 1p ordinary shares were issued to Auzex Resources Limited as part of a private placement in Auzex Resources Limited;
(ii) In July 2010, the Company issued 29,605,263 1p ordinary shares at 3.8 pence per share;
(iii) In November 2010, the Company issued 63,829,781 1p ordinary shares at 11.75 pence per share;

Share Warrants

The group has 4,934,208 share purchase warrants outstanding at a weighted average exercise price of 12.6 pence, which are listed below:

(i) 4,934,208 share purchase warrants exercisable at a price of 12.6 pence per share and expiring on 19 January 2012;

During 2010, 15,067,250 share purchase warrants expired.

Share Options

At 31 December 2010, the total number of options outstanding and exercisable was 11,980,000 (2009 – 9,400,000) and was exercisable as follows:

(i) 200,000 (2009 – 400,000) share options exercisable at 38p (2009 - 19p) per share on or before 23 February 2012;
(ii) 3,075,000 (2009 – 6,150,000) share options exercisable at 32p (2009 - 16p) per share on or before 23 February 2012;
(iii) 500,000 (2009 – 1,000,000) share options exercisable at 7p (2009 - 3.5p) per share on or before 6 October 2014;
(iv) 3,425,000 share options exercisable at 8p per share on or before 23 April 2015;
(v) 1,150,000 share options exercisable at 10p per share on or before 30 June 2015;
(vi) 3,630,000 share options exercisable at 40p per share on or before 23 November 2015;

During the year ended 31 December 2010, the Company issued, before consolidation, 16,410,000 share options, and 1,850,000 share options lapsed as follows:

(i) 1,600,000 share options, originally exercisable at 6p on or before 13 March 2010;
(ii) 250,000 share options, originally exercisable at 8.5p on or before 13 March 2010.

17. RESERVES

For the year ended 31 December 2010

Group

Warrant
reserve
£

Share
option
reserve
£

Share
premium
account
£
Available
for
sale
asset
reserve
£


Retained
losses
£


Trans-
lation
reserve
£
             
At 1 January 2010 492,329 267,418 8,213,120 - (6,195,834) 723,334
Loss for the year - - - - (701,838) -
Premium arising on issue of equity shares - - 8,111,998 - - -
Grant of share options / warrants 52,858 165,442 - - - -
Movement during the year - - - 2,089,138 - 31,002
Cost of lapsed warrants / options (492,329) (87,061) - - 579,390 -
Issue costs - - (380,733) - - -
             
At 31 December 2010 52,585 345,799 15,944,385 2,089,138 (6,318,282) 754,336
             
             
Group

Warrant
reserve
£

Share
option
reserve
£

Share
premium
account
£
Available
for
sale
asset
reserve
£


Retained
losses
£


Trans-
lation
reserve
£
             
At 1 January 2009 492,329 310,400 8,105,920 - (4,707,240) 1,649,176
Loss for the year - - - - (1,719,081) -
Premium arising on issue of equity shares - - 129,167 - - -
Grant of share options / warrants - 12,664 - - - -
Movement during the year - - - - - (751,001)
Effect of discon-
tinued oper-
ations
- - - - 174,841 (174,841)
Cost of lapsed warrants / options - (55,646) - - 55,646 -
Issue costs - - (21,967) - - -
             
At 31 December 2009 492,329 267,418 8,213,120 - (6,195,834) 723,334
             
             
Company

 Warrant
reserve
£

 Share
option
reserve
£

 Share
premium
account
£
Available
for
sale
asset
reserve
£


 Retained
losses
£
           
At 1 January 2010 492,329 267,418 8,213,120 - (6,079,880)
Loss for the year - - - - (238,010)
Premium arising on issue of equity shares - - 8,111,998 - -
Grant of share options/warrants 52,585 165,442 - - -
Movement during the year - - - 2,089,138 -
Cost of lapsed warrants / options (492,329) (87,061) - - 579,390
Issue costs - - (380,733) -  
           
At 31 December 2010 52,585 345,799 15,944,385 2,089,138 (5,738,500)
           
           
Company

 Warrant
reserve
£

 Share
option
reserve
£

 Share
premium
account
£
Available
for
sale
asset
reserve
£


 Retained
losses
£
           
At 1 January 2009 492,329 310,400 8,105,920 - (4,792,658)
Loss for the year - - - - (1,342,868)
Premium arising on issue of equity shares - - 129,167 - -
Grant of share options/warrants - 12,664 - - -
Cost of lapsed warrants / options - (55,646) - - 55,646
Issue costs - - (21,967) - -
           
At 31 December 2009 492,329 267,418 8,213,120 - (6,079,880)
           
           

Warrant reserve

 
Warrants in issue
Warrant
reserve
£
     
Group and Company    
At 31 December 2010 4,934,208 52,585
     
Group and Company    
At 31 December 2009 15,067,250 492,329
     
     

(i) Warrants granted during the year ended 31 December 2010 were valued by the Directors using the Black-Scholes valuation model, based upon the following assumptions:

- Term range of 18 months
- Expected dividend yield of nil
- Risk free interest rate of 2%
- Share price volatility of 60%
- Share price at date of issue of 3.8 pence.

Stock Option Reserve

 
Stock
options
 in issue
Stock
option
reserve
£
     
Group and Company    
At 31 December 2010 11,980,000 345,799
     
Group and Company    
At 31 December 2009 9,400,000 267,418
     
     

Share options granted during the year ended 31 December 2010 were valued by the Directors using the Black-Scholes valuation model, based upon the following assumptions:

  Apr 2010 Jun 2010 Nov 2010
Term range 5 years 5 years 5 years
Expected dividend yield - - -
Risk free interest rate 2% 2% 2%
Share price volatility 80% 80% 20%
Share price at date of issue 2.90p 4.25p 12.625p

18. CAPITAL COMMITMENTS

At the year end the group had capital commitments relating to the joint venture agreement of £2,058,023 (AUD$ 3,100,000)

19. SHARE BASED PAYMENTS

Equity-settled share option scheme

The Company has a share option scheme for all employees of the Group. Options are exercisable at a price equal to the average quoted market price of the Company's shares on the date of grant. If the options remain unexercised after a period of five years from the date of grant the options expire.

Details of the share options outstanding during the year are as follows:

  Number of
share options
  2010
Weighted
average
exercise
price
(£)
Number of
share options
  2009
Weighted
average
exercise
price
(£)
             
Outstanding at beginning of period 9,400,000   12.9p 10,000,000   13.5p
Granted during the period 16,410,000   20.0p 1,000,000   3.5p
Forfeited during the period -     (1,600,000 ) 11.0p
Exercise during the period -     -    
Expired during the period (1,850,000 )   -    
Reflecting 1:2 equity share capital consolidation (11,980,000 )        
             
Outstanding at the end of the period 11,980,000   24.5p 9,400,000   12.9p
             
Exercisable at the end of the period 11,980,000     9,400,000    
             

The options outstanding at 31 December 2010 had a weighted average exercise price of 24.5p (2009 – 12.9p), and a weighted average remaining contractual life of 3.35 years (2009 – 1.3 years). The aggregate of the estimated fair values of the outstanding options is £2,936,000. (2009 – £1,212,250).

The inputs into the Black-Scholes model are as follows:

  Apr 2010 Jun 2010 Nov 2010 2009
         
Weighted average share price 2.90p 4.25p 12.625p 2.88p
Weighted average exercise price 4.00p 5.00p 20.00p 3.50p
Expected volatility 80% 80% 20% 50%
Expected life (years) 5 5 5 5
Risk-free rate 2% 2% 2% 5%
Expected dividend yields - - - -
         

Expected volatility was determined based on management's best estimate. The expected life used in the model has been adjusted, based on management's best estimate, for the effects of non-transferability, exercise restrictions, and behavioural considerations.

In 2010, the Group recognised total expenses of £165,442 (2009 – £12,664) relating to equity-settled share-based payment transactions.

20. FINANCIAL INSTRUMENTS

Group and Company

Capital risk management

The Group manages its capital to ensure that entities in the Group will be able to continue as going concerns while maximising the return to stakeholders through the optimisation of the debt and equity balance. The capital structure of the Group consists of cash and cash equivalents and equity attributable to equity holders of the parent, comprising issued capital, reserves and retained earnings as disclosed in note 17 and 18.

Significant accounting policies

Details of the significant accounting policies and methods adopted, including the criteria for recognition, the basis of measurement and the basis on which income and expenses are recognised, in respect of each class of financial asset, financial liability and equity instrument are disclosed in note 1 to the financial statements.

Categories of financial instruments

  Group Company
  Carrying value Carrying value
  2010
£
2009
£
2010
£
2009
£
Financial assets        
Loans and receivables
(including cash and cash equivalents)
10,854,283 6,059,020 8,238,168 4,439,674
         
Financial liabilities        
Payables 567,958 696,937 520,643 18,707
         

Financial risk management objectives

The Group's financial function provides services to the business, monitors and manages the financial risks relating to the operations of the Group. These risks include market risk (including currency risk, fair value interest rate risk and price risk), credit risk, liquidity risk and cash flow interest rate risk.

The Group does not enter into or trade financial instruments, including derivative financial instruments, for any purpose.

Market risk

The Group's activities expose it primarily to the financial risks of changes in foreign currency exchange rates. There has been no change to the Group's exposure to market risks or to the manner in which it measures and manages the risk.

Foreign currency risk management

The Group undertakes certain transactions denominated in foreign currencies. Hence, exposures to exchange rate fluctuations arise.

The carrying amounts of the Group's and Company's foreign currency denominated monetary assets and monetary liabilities at the reporting date are as follows:

  Assets
  2010
£
2009
£
     
Cash denominated in foreign currency 10,397,771 3,264,904
     

Foreign currency sensitivity analysis

The Group is exposed to the currency of the People's Republic of China (RMB) and the Australian dollar (AUD).

The following table details the Group's sensitivity to a 20% increase and decrease in the Sterling against the each foreign currency. 20% is the sensitivity rate used when reporting foreign currency risk internally to key management personnel and represents management's assessment of the reasonably possible change in foreign exchange rates. The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at the period end for a 20% change in foreign currency rates. A negative number below indicates a decrease in profit where the Sterling strengthens 20% against the relevant currency. For a 20% weakening of the Sterling against the relevant currency, there would be an equal and opposite impact on the profit and the balances below would be positive.

  Currency
impact
 
  2010
£
  2009
£
 
         
Effect of a 20% change in RMB (427,466 ) (544,151 )
Effect of a 20% change in AUD (1,297,423 ) -  
         
  (1,724,889 ) (544,151 )
         

The Group's sensitivity to foreign currency has increased during the current period, due to the inclusion of cash held in Australian dollars.

Liquidity risk management

Ultimate responsibility for liquidity risk management rests with the Board of Directors, which has built an appropriate liquidity risk management framework for the management of the Group's short term funding and liquidity management requirements. The Group manages liquidity risk by maintaining adequate reserves, by continuously monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and liabilities.

Liquidity and interest risk tables

The following table details the Group's remaining contractual maturity for its non-derivative financial liabilities. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Group can be required to pay. The table includes the principal cash flows. All amounts are repayable within 1 year.

  Group Company
  2010
£
2009
£
2010
£
2009
£
         
Non-interest bearing 567,958 724,981 520,643 46,751
         

The Group and Company has no financial derivatives.

21. SUBSIDIARIES

Details of the Company's subsidiaries at 31 December 2010 were as follows:

Name of subsidiary Place of
incorporation
(or
registration)
and operation
Proportion
of ownership
interest
%
Proportion
of voting
power held
%



 Principal activity
         
Nexon Asia Group Ltd BVI 100% 100% Holding Company
CCG Copper Ltd BVI 100% 100% Holding Company
Central China Minerals Ltd BVI 100% 100% Holding Company
GGG Mining Ltd, previously CCG Xinjiang Ltd(i) BVI 100% 100% Holding Company
CCG Korea Ltd BVI 100% 100% Holding Company
Zhongcheng Ltd(ii) PRC 100% 100% Holding Company
CCG Beijing(iii) PRC 100% 100% Representative Office
GGG Australia Pty Ltd AUS 100% 100% Local Operating Company
 
(i) CCG Xinjiang Ltd changed its name to GGG Mining Limited during the year ended 31 December 2009.
(ii) Chengdu Zhongcheng Mining Technology Development Company Limited (Zhongcheng) is a 100%-owned subsidiary of CCG Copper (BVI) Limited. Zhongcheng Ltd disposed of its 75% interest in Lhasa Tianli Mining Company Limited during the year ended 31 December 2009.
(iii) United Kingdom Central China Goldfields plc Beijing Representative Office is a representative office of the Company and not a subsidiary in the Group.

22. POST BALANCE SHEET EVENTS

On 14 March 2011 the Company announced its intention to make an off-market scrip offer for all of the issued shares in Auzex Resources Limited that it does not own. The Offer is for seven GGG Shares for every five Auzex shares held, valuing Auzex at approximately A$ 94.9 million – a 39.3% premium to the Auzex's closing share price on 11 March 2011. If the takeover is successful it will consolidate the ownership of the Bullabulling Gold Project into a single merged entity. The Company is applying for listing on the Australian Stock Exchange which, if successful, will give the Company dual-listed status and access to capital markets in the United Kingdom and Australia.

Contact Information

  • Dr. Jeffrey Malaihollo
    MD, GGG Resources plc (UK)
    + 44 1992 531820
    www.gggresources.com
    or
    Westhouse Securities Limited (UK Nominated Adviser)
    Tom Price / Martin Davison
    + 44 20 7601 6100
    or
    Neil Boom
    MD, Gresham PR Ltd (UK).
    + 44 7866 805 108
    or
    Collins Stewart Europe Limited (Broker)
    John Prior / Adam Miller
    + 44 20 7523 8350
    or
    David McArthur
    GGG Resources plc (Australia)
    41 Stirling Highway
    Nedlands, WA 6009
    Australia
    +61 8 9423 3200
    or
    David Brook
    Professional Public Relations (Australia media)
    +61 8 9388 0944/ +61 433 112 936
    david.brooks@ppr.com.au