A S H B U R T O N - 500 Beiträge pro Seite

[Gelfling]

Thank you for your thoughtful email and thank you for your suggestions. I will investigate the possibility of including a German text Homepage.

Ashburton is concentrating its efforts on acquiring advanced gold projects in Brazil. We currently hold the Mina Inglesa project, and have recently announced the acquisition of an option over the Lavrinha deposit. Both of these areas hold significant garimpeiro mining operations, thus confirming the presence of economic gold mineralisation.

In addition we are working in the Pocone area where the tailings project is associated with extensive private gold mines.

We are also about to finalise an agreement over an additional group of tenements.

We believe all the areas we hold so far have a very good potential to contain gold deposits that can be mined economically on a company scale. At Pocone, any gold resource we identify in the tailings will add to the primary deposits that we are trying to identify there.

In the next three months we will carry out drilling of all these areas and expect to receive some very goods results from this work.

Brazil is a long way away, but the opportunities make our presence there worthwhile.

I am looking forward to an exciting year during 2006.

Kind regards


Tom Dukovcic
Managing Director
Ashburton Minerals Ltd
t: [phone]
f: [phone]
m:[phone]
e: [e-mail]

[Gelfling]

Antwort auf Beitrag Nr.: 21.024.642 von Gelfling am 31.03.06 11:24:09

Die definierten Zielgebiete ASHBURTONS dürften sehr interessant
sein, so wie auch das Unternehmen selbst.
Informiert Euch mal in Ruhe (Home-Page).

[bimi66]

Hey Gelfling die Frage ist doch aber wann wird das abgebaut? Die bohren schon seit vielen Jahren Löcher und haben noch nichts zur Bank getragen,wann fangen die bei ASH an zu fördern.Haste da eine Info,auf der Homepage ist da nichts vermerkt?Habe alles schon durchgelesen.Gruss bimi

[Gelfling]

Antwort auf Beitrag Nr.: 21.027.739 von bimi66 am 31.03.06 14:12:25

Guten Tag BIMI 66
ich habe nochmals vor einigen Tagen ASHBURTON-MINERALS angeschrieben.
Bereits beim ersten Schreiben habe ich auch u.a. Deine Frage
gestellt (wie das Unternehmen in Zukunft ausgerichtet ist).

Vielleicht erhalte ich noch eine zweite Antwort.

Es ist nicht so einfach, die HOME-PAGE zu "entschlüsseln".
Meine Englischkenntnisse sind eher schlecht
Naja, vielleicht bringt ASHBURTON demnächst eine DEUTSCHE, informative, aber vor allem eine möglichst aktuelle Seite
raus. Wäre sehr gut.

[bimi66]

Hey Gelfling wen die Informationen besser wären würde der Handel mit ASH auch hier in schwung kommen.Was in Sachen Englischkenntnisse nicht geht da muß Abacho oder meine Frau ran.Auf der Homepage bzw.in den Medien habe Ich zum Thema fördern nirgends was gefunden,falls du schon Investiert bist good luck bei Kursen von 0,03-0,04 Cent kann man schon mal 100000 shares ins Depot legen.Falsch machen kann man da nicht viel.Gruss bimi66

[Gelfling]

Antwort auf Beitrag Nr.: 21.088.858 von bimi66 am 05.04.06 16:27:47

Wenn ich etwas aktuelles erhalte, melde ich mich umgehend.
Ich bin, nachdem ich mich so gut es geht, informiert habe,
positiv eingestellt.
Es liegt aber nicht an uns, sondern an ASHBURTON-MINERALS,
uns mit E r f o l g e n
und mit N a c h r i c h t e n
bester Art zu erfreuen.
Warten wir einfach ab, wie ich schon sagte.
Geduld x Ergebnisse ASHBURTON= €€€€€€€

[Gelfling]

Guten Tag

ASHBURTON-MINERALS

Aegis Blue Book - March 2006 (167.74 Kb)

unter der Home-Page www.ashburton-minerals.com.au/
zu finden.

Interessant allemal.

[bimi66]

Guten Morgen Gelfling besten Dank für die Info und einen schönen Tag. Gruss bimi66

[Gelfling]

ASHBURTON auf einem richtig guten Weg
======================================
QUARTERLY REPORT

Q3, for the period ended 31 March 2006
Highlights
• Brazil: Drilling of tailings dams recommenced at Pocone: The
Transdrill rig has recommenced aircore drilling of the tailings sands at
Pocone with sample recovery greatly improved to around 60% – 80%.
A further two dams were drilled, representing 670,000 m3 of material.
This campaign comprised 69 holes for 708 m of drilling.
• Brazil: New Joint Venture with Geomin over Lavrinha prospect:
The Lavrinha gold prospect contains a number of private workings on a
shallowly dipping quartz vein system from which past drilling returned
up to 4 m @ 19.22 g/t and 4 m @ 16.36 g/t and which has the potential
to host a significant economic gold deposit.
• Corporate: Acquisition of 50% of drilling contractor Transdrill Pty
Ltd: Transdrill operates an Australian built aircore drilling rig in Brazil.
The acquisition provides security of drilling services over the
Company’s Brazilian projects.
Ashburton Minerals Ltd is an Australian-based resource company primarily focused on
exploration and development of advanced gold projects in Brazil with the objective to
commence gold production in the near term.
Brazilian Gold Projects
The Company has identified Brazil as offering excellent opportunities to secure advanced gold
projects in a resource rich country possessing good infrastructure and low sovereign risk. The
Company aims to build a significant presence in the country, principally in the states of Mato
Grosso and Goias.
Australian Exploration
The Company continues to evaluate targets in Western Australia deemed prospective for a
range of metals, including gold. Most of these are based on conceptual targeting and are at the
grass roots exploration stage.
OPERATIONS
BRAZIL EXPLORATION
The Company conducts its activities in Brazil through its wholly owned subsidiary Trans
Pacific Gold Pty Ltd (“TPG”) and that company’s Brazilian registered subsidiary Trans
Pacific Gold Mineracao Ltda (“TPGM”).
TPG is currently active in two areas in central western Brazil, in the state of Mato Grosso
and in the state of Goias. The Company has a two-fold strategy in Brazil, firstly, the
evaluation of the potential to reprocess large volumes of artisinal tailings sands, previously
untreated by cyanide, and secondly, to secure advanced gold projects which have a clear
potential to advance to production in the near term.
New Acquisition: Lavrinha and other prospects, Pontes e Lacerda, Mato Grosso
During the Quarter the Company’s subsidiary, TPGM, signed an agreement with a private
Brazilian company, Geomin Geologia e Mineracao Ltda (“Geomin”), to explore a portfolio
of gold tenements near the town of Pontes e Lacerda in western Mato Grosso state. This
area is 400 km west of Pocone and is not part of TPG’s Brazil Tailings JV. The portfolio
comprises six tenements held by Geomin, and a further ten applications in the name of
TPGM. The Geomin tenements include the Lavrinha gold prospect which, some ten years
ago, reportedly returned drill intercepts including 4 m @ 19.22 g/t, 4 m @ 16.36 g/t and 6
m @ 5.14 g/t. A site visit confirmed the existence of drill holes in the locations indicated
by Geomin maps, however, TPGM intends to verify these results with its own drilling
programme over the coming months.
The site visit also confirmed the presence of private scale mine workings and tailings sands
within the Lavrinha tenement area, where gold was discovered in the 1980s by alluvial
miners. Today, the miners exploit a series of sub-parallel quartz veins developed along
shear zones and areas of dilation within folded Proterozoic meta-conglomerates and quartz
sericite schists.
The Pontes e Lacerda region is dominated by Yamana Gold Inc and its associated
companies. Yamana is a Canadian public listed company (TSX: YRI) which operates the
Sao Francisco heap leach gold mine (1.3 M oz reserves; TSX: YRI, 20 March 2006) and
has a further two deposits at scoping or feasibility study stage, namely Sao Vicente and
Ernesto. Ernesto, at which Yamana has reported gold resources of 142,000 oz in the
Measured and Indicated categories, abuts the Lavrinha prospect to the east.
Drilling of the main mineralised zone at Lavrinha over a 200 m strike shows that the zone
remains open at depth and to the northeast, in the direction of the Ernesto deposit. Some
800 m of this strike lies within the tenement and is untested by drilling. The information
provided by Geomin has not been sufficiently verified to allow the calculation of a JORCcompliant
resource. However, from an analysis of this information, the Company believes
that the Lavrinha prospect could host a 200,000 oz – 300,000 oz gold deposit which could
be confirmed by drilling in a relatively short time.
Under the terms of the agreement with Geomin, TPGM has secured a 6 week due diligence
period through the payment of US$20,000. After this time, TPGM is to pay Geomin a
further US$60,000 to secure a 3 year period in which TPGM is to sole fund US$2 million.
At any time within the three years, if TPGM meets this expenditure, or if TPGM identifies
global resources within the project tenements of in excess of 250,000 oz, a formal joint
venture will be incorporated with TPGM holding a 77.5% interest and Geomin holding a
22.5% interest.
Geomin will be free carried through to Bankable Feasibility, and carried subsequently, with
repayment of costs attributable to Geomin coming from 50% of any profits due to GeoMin
from mining operations.
TPGM is awaiting an independent geological report, due in the next week, as a final stage
of its due diligence evaluation.
Pending the results of that report, drilling of the Lavrinha prospect is planned to commence
in May, after the current round of drilling at Pocone has been completed.
POCONE PROJECTS, MATO GROSSO
In the Pocone area in Mato Grosso TPG is involved in the evaluation of a gold tailings
sands reprocessing project and exploration for primary gold mineralisation based initially
over 20 prospecting licences in Pocone. Aircore drilling of the tailings sands recommenced
during the quarter utilising an improved sample recovery system.
Pocone Tailings
TPG’s focus on the Pocone area stemmed from the opportunity presented by the indicative
potential to reprocess large volumes of artisinal gold tailings sands, which have reportedly
been derived from gravimetric extractive processes, that is, without the use of cyanide.
The focus of TPG’s activity is in the Ourinhos area where the local tenement/land owner
carries out a significant private gold mining operation.
The tailings project operates in the context of the Brazil Tailings Joint Venture in which
Areias Douradas Pty Ltd, a wholly owned subsidiary of Cougar Metals NL, holds a 25%
carried interest, with TPG as manager.
Recommencement of Drilling of Tailings
Drilling of the tailings recommenced during the quarter with the contractor, Transdrill,
utilising a modified sample recovery system which successfully increased recoveries to
between 60% and 80%, a significant improvement on earlier recoveries of 20% - 40%. The
rig is now able to recover sample from wet tailings throughout the profile of the dam.
Two additional dams at Ourinhos were drilled during the quarter, namely tanks T1 and T2
which have a combined volume of approximately 670,000 m3 (equating to 1.1 M t at an
assumed bulk density of 1.7 t/m3). The programme comprised 708 metres of drilling in 69
holes, with 441 two-metre composite samples collected. TPG is awaiting results of an
orientation survey on the distribution of gold within the tailings sands prior to submitting
these samples for analysis.
The current wet season has persisted well into April, far longer than expected, and further
drilling of the remaining tailings will likely need to be deferred until after the dams have
had time to dry out.
CRIXAS, GOIAS
Mina Inglesa
The Mina Inglesa tenement, with mines department (DNPM) number 860.998/2004,
contains an artisinal open pit gold mine situated over the historical Mina Inglesa workings
within sheared Archaean mafic and ultramafic rocks. A large, as yet unquantified, volume
of gold tailings sands sits within the tenement as a valley fill of a local stream.
TPG is still waiting for the completion of an environmental base line study report by the
DNPM before commencing ground activities within the tenement area. The latest
information from the DNPM suggests that this report should be available within the next 4
to 6 weeks.
AUSTRALIAN EXPLORATION
The Company has lodged an application for an exploration licence in the northern part of
the Gascoyne Complex of Western Australia. The application encompasses an area of
pronounced multi-element anomalism which the Company’s geologists regard as a
conceptual target for polymetallic mineralisation.
CORPORATE
Acquisition of 50% interest in Transdrill Pty Ltd
The Company’s wholly owned subsidiary, TPG, acquired a 50% interest in Transdrill Pty
Ltd for a cash consideration of A$150,000.
Transdrill owns and operates an Australian built drilling rig in Brazil. The rig was
contracted by TPG for drilling of tailings sands and other exploration work. The rig can
drill aircore, small diameter RC (reverse circulation) or RAB (rotary air blast) and is a
valuable exploration asset to have in the country. The acquisition of a 50% interest in
Transdrill gives TPG greater security for its drilling requirements and will be an asset in
negotiating access to new projects in Brazil.
Expiry of options
A total of 3,450,000 options, exercisable at 20 cents each, expired on 31 January 2006.
Tom Dukovcic
Managing Director
28 April 2006
The information contained in this report that relates to Exploration Results or Mineral Resources is based on information compiled by Mr Tom
Dukovcic who is a Member of the Australian Institute of Geoscientists. Mr Dukovcic is a full-time employee of the Company and has sufficient
relevant experience to qualify as a Competent Person as defined in the 2004 Edition of the “Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves”. Mr Dukovcic consents to the inclusion in this report of information compiled by him in the form
and context in which it appears.
Appendix 5B
==================================


Was ist Eure Meinung?

[Gelfling]

Es geht voran
=============



8 May 2006

The Manager
Company Announcements Office
Australian Stock Exchange
E-lodgement via ASX Online
ASHBURTON MINERALS LTD
(“Ashburton” or “the Company”)
ENTERS INTO CUIABA GOLD PROJECT JOINT VENTURE IN BRAZIL
Ashburton Minerals Ltd is pleased to announce that it has signed a Heads of
Agreement with AIM-listed Minmet plc (“Minmet”) relating to the Cuiaba Gold Project
in the state of Mato Grosso in Brazil.
The Cuiaba-Pocone district is an area of significant gold mineralisation that contains
numerous private (garimpeiro) gold workings scattered over a 120 km strike. By
virtue of the scale of these operations, Ashburton is of the opinion that the district
holds potential to host a number of larger, company-scale gold deposits.
Nevertheless, the area remains essentially unexplored by Australian standards.
Minmet, through its Brazilian subsidiary Mineradora de Bauxita (“MBL”), holds ten
granted exploration permits within the district (see attached map) encompassing
ground within two such areas of pronounced mining activity. In addition, MBL has a
large amount of technical data, including an airborne geophysical survey
commissioned by MBL in 1999, covering an area of approximately 150 km x 50 km
and extending over the entire Cuiaba-Pocone district (see attached map). The
extent of the geophysical survey will define the Cuiaba Gold Project. The MBL
technical database will be made available to Ashburton for the duration of the
project.
The Cuiaba Gold Project consists of two parts, namely
1. The MBL tenements
2. The remaining ground within the project area, defined by the extent of the
geophysical survey.
Under the terms of the agreement Ashburton will secure a three year option period
by issuing to Minmet:
a) 1,609,332 fully paid ordinary shares in Ashburton; and
b) 500,000 free attaching unlisted options, with an exercise price of 15 cents
each by 30 June 2009.
During the option period Ashburton is to sole fund A$800,000 in exploration
expenditure according to the following minimum requirements:
1. A$150,000 in the first year;
2. A$250,000 in the second year, incorporating a minimum 1,000 m of
drilling; and
3. A$400,000 in the third year, incorporating a minimum 1,500 m of drilling.
On meeting its sole funding obligations, Ashburton will earn a 75% equity interest in
the MBL tenements, triggering the commencement of the joint venture phase during
which each party is to contribute pro-rata or dilute by standard formula. Should a
party’s interest reduce to below 10% the interest will convert to a 2.5% net smelter
royalty (“NSR”).
Minmet will retain a Claw Back Right of up to 50% in any resource identified by
Ashburton within the MBL tenements in excess of 300,000 ounces (classified under
the Measured and Indicated categories as specified by the Australian JORC
guidelines). Minmet can claw back up to 50% by meeting 100% of Ashburton’s
expenditure in defining the resource, or paying that amount in cash to Ashburton.
Within the project area outside the MBL tenements, Minmet will be entitled up to
2.5% NSR on the interest held by Ashburton in any non-tailings discovery and will
have an Earn-In Right of up to 50% of Ashburton’s interest in any non-tailings
discovery should Ashburton’s interest be greater than 300,000 oz (JORC compliant,
as above). Minmet can earn up to 50% by meeting 200% of Ashburton’s
expenditure in defining the resource, or paying that amount in cash to Ashburton.
The agreement with Minmet gives Ashburton access to potential hard rock gold
deposits in areas of demonstrated gold mineralisation and represents a significant
addition to Ashburton’s current involvement in the region through the Pocone tailings
reprocessing evaluation project.
Ashburton intends to commence exploration of the MBL tenements immediately with
a view to establishing early drilling targets. The Transdrill rig, which is 50% owned
by the Company, has completed the current phase of tailings drilling at Pocone. It is
being mobilised to the Lavrinha prospect in the west of the state and is expected to
return to Cuiaba in around six weeks time.
Tom Dukovcic
Managing Director
The information contained in this report that relates to Exploration Results or Mineral Resources is based on information compiled by Mr
Tom Dukovcic who is a Member of the Australian Institute of Geoscientists. Mr Dukovcic is a full-time employee of the Company and has
sufficient relevant experience to qualify as a Competent Person as defined in the 2004 Edition of the “Australasian Code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves”. Mr Dukovcic consents to the inclusion in this report of information compiled
by him in the form and context in which it appears.
Map of Cuiaba Gold Project, showing extent of project, MBL tenements and
garimpeiro workings

[Gelfling]

19 May 2006
The Manager
Company Announcements Office
Australian Stock Exchange Limited
E-lodgement via ASX Online
ASHBURTON MINERALS LTD
(“Ashburton” or “the Company”)
OPTION EXERCISED OVER THE LAVRINHA GOLD PROSPECT
The Company is pleased to advise that, following due diligence investigations, its wholly owned
Brazilian subsidiary Trans Pacific Gold Mineracao Limitada (“TPGM”) has exercised its option over
the Lavrinha prospect and other properties in the Pontes e Lacerda region in western Mato Grosso
state in Brazil.
TPGM secured a 3 year option by completing a US$60,000 payment to Geomin Geologia e
Mineracao Limitada (“Geomin”), the owner of the tenements. During the option period TPGM is to
sole fund US$2 million on exploration, development and feasibility studies over the project tenements.
At any time within the three years that TPGM meets this expenditure, or if TPGM identifies global
resources within the project tenements of in excess of 250,000 oz, a formal joint venture will be
incorporated with TPGM holding a 77.5% interest and Geomin holding a 22.5% interest.
The Pontes e Lacerda project comprises six tenements held by Geomin, or its principals, and a
further 10 applications lodged by TPGM, being 77 sq km in total area.
The Lavrinha prospect (tenement number 866.369/2003), located 10 km south of Pontes e Lacerda is
a site of past private (garimpeiro) mining activity focused on exploitation of a series of outcropping
quartz veins within a sheared sequence of Proterozoic metasediments. Limited drilling by previous
explorers in the mid 1990s returned a number of encouraging intercepts, including 4 m @ 16.36 g/t,
6 m @ 5.14 g/t, and 4 m @ 19.22 g/t. These results are to be verified by TPGM through an upcoming
RC drilling program expected to commence within the next two weeks utilising the Transdrill rig that is
currently on site at Pocone.
The main mineralized zone has so far been defined over a 200 m strike. Existing drilling information
shows that the zone remains open at depth and along strike to the north east, with some 800 m of
this untested strike contained within the Lavrinha tenement.
The initial drilling program is designed to confirm and verify previous results and to test for extensions
of the main zone along strike. Approximately 20 holes for 1,200 m of drilling is planned. The
information should enable the Company to calculate an initial resource at Lavrinha.
The historical results, together with the extent of the garimpeiro workings, are very encouraging and
warrant fast-tracking exploration of this exciting prospect. The Company looks forward to the
upcoming drilling program.
Tom Dukovcic
Managing Director
The information contained in this report that relates to Exploration Results or Mineral Resources is based on information compiled by Mr
Tom Dukovcic who is a Member of the Australian Institute of Geoscientists. Mr Dukovcic is a full-time employee of the Company and has
sufficient relevant experience to qualify as a Competent Person as defined in the 2004 Edition of the “Australasian Code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves”. Mr Dukovcic consents to the inclusion in this report of information compiled
by him in the form and context in which it appears.

[Gelfling]

AUSTRALIAN
Exploration Review
June 2006
The Resources Express: gold plated and nuclear powered
BLUE BOOK SERIES
Quarterly
Quarterly Exploration Review June 2006
page 2 of 60 Copyright © 2006 Aegis Equities Holdings Pty Limited. All Rights Reserved.
Contents
This is an extract from the June 2006 Quarterly Exploration Review.
IMPORTANT NOTICE
Aegis has been commissioned to produce this report.
Disclaimer & Disclosure of Interests
This publication has been prepared by Aegis Equities Research Pty Limited (ACN 085 293 910, AFSL no.
225072) (‘Aegis’), an Australian Financial Services Licensee. Aegis has been commissioned to prepare this
independent research report (the “Report”) and will receive fees for its preparation. Each company
specified in the Report (the “Participants”) has provided Aegis with information about its activities. Whilst
the information contained in this publication has been prepared with all reasonable care from sources that
Aegis believes are reliable, no responsibility or liability is accepted by Aegis for any errors, omissions or
misstatements however caused. Any opinions, forecasts or recommendations reflects the judgment and
assumptions of Aegis as at the date of publication and may change without notice. Aegis and each
Participant in the Report, their officers, agents and employees exclude all liability whatsoever, in
negligence or otherwise, for any loss or damage relating to this document to the full extent permitted by
law. This publication is not and should not be construed as, an offer to sell or the solicitation of an offer to
purchase or subscribe for any investment. Any opinion contained in the Report is unsolicited general
information only. Neither Aegis nor the Participants are aware that any recipient intends to rely on this
Report or of the manner in which a recipient intends to use it. In preparing our information, it is not
possible to take into consideration the investment objectives, financial situation or particular needs of any
individual recipient. Investors should obtain individual financial advice from their investment advisor to
determine whether opinions or recommendations (if any) contained in this publication are appropriate to
their investment objectives, financial situation or particular needs before acting on such opinions or
recommendations. This publication is not for public circulation or reproduction whether in whole or in part
and is not to be disclosed to any person other than the intended recipient, without obtaining the prior
written consent of Aegis. Aegis and/or each Participant, their officers, employees or its related bodies
corporate may, from time to time hold positions in any securities included in this Report and may buy or
sell such securities or engage in other transactions involving such securities. Aegis and the Participants,
their directors and associates declare that from time to time they may hold interests in and/or earn
brokerage, fees or other benefits from the securities mentioned in this publication.
Aegis, its officers, employees and its related bodies corporate have not and will not receive, whether
directly or indirectly, any commission, fee, benefit or advantage, whether pecuniary or otherwise in
connection with making any statements and/or recommendation (if any), contained in this Report. Aegis
discloses that from time to time it or its officers, employees and related bodies corporate may have an
interest in the securities, directly or indirectly, which are the subject of these statements and/or
recommendations (if any) and may buy or sell securities in the companies mentioned in this publication;
may effect transactions which may not be consistent with the statements and/or recommendations (if any)
in this publication; may have directorships in the companies mentioned in this publication; and/or may
perform paid services for the companies that are the subject of such statements and/or recommendations
(if any).
However, under no circumstances has Aegis been influenced, either directly or indirectly, in making any
statements and/or recommendations (if any) contained in this Report.
The information contained in this publication must be read in conjunction with the Legal Notice that can be
located at http://www.aer.com.au/disclaimer.asp.
Quarterly Exploration Review June 2006
page 21 of 60 Copyright © 2006 by Aegis Equities Holdings Pty Limited. All Rights Reserved.
Status:
Ashburton Minerals Limited
ASX Code: ATN
Core Commodity Gold
Price (as at 19-May-06) $0.07
Market Cap $5.5M
Cash (as at 31-Mar-06) $1.5M
Cash / Share $0.02
Shares Traded ( pa) $1.9M
Top Shareholders
ANZ Nominees 50.0%
Red Peaks Pty Ltd 4.0%
Summary activity for the current quarter Quantity Budget
Soil/Rock Chipping 200 $0.1M
RAB
RC/Diamond 2,000m $0.1M
Assays 1,000 $0.0M
Geophysics
Other GIS, mapping $0.1M
Total Expenditure $0.3M
Pontes e Lacerda
Location Brazil
Commodity Gold
Style Vein/Shear
Ashburton has secured a three year option over a series of gold prospective
tenements in western Mato Grosso state through wholly owned subsidiary Trans
Pacific Gold Mineracao Ltda. Included in the package is the Lavrinha prospect
that contains old garimperio workings and previous high grade drill intercepts
such as 4 m @ 16.36 g/t and 4 m @ 19.22 g/t. TPGM is mobilising a drill rig to
site in late May to carry out initial drilling with a view to establishing a JORCcompliant
resource at the prospect.
Cuiaba Gold Project
Location Brazil
Commodity Gold
Style Vein/Shear
Ashburton entered into an option and joint venture agreement with AIM-listed
Minmet plc over that company\'s Cuiaba gold tenements. Ashburton, through
TPGM, is to take over management of the project and will gain access to a large
amount of regional exploration data accumulated by Minmet. Ready drilling
targets exist at several sites of extensive garimperio exploitation of quartz veins
in Proterozoic sediments. Longer term exploration will focus on large
disseminated deposits of the Paracatu and Carlin type.
Brazil Tailings JV
Location Brazil
Commodity Gold
Style Tailings
Evaluation of artisinal gold tailings sands continued during last quarter with
several additional dams drilled with the aid of an aircore rig in which Ashburton
has a 50% interest. The tailings sands are the by-product of gravimetric
recovery and have not previously been treated by cyanide.
Aegis Equities Comments
Projects: ATN has established two new project areas with local companies. Both focus on hard rock gold deposits where
manual gold workings occur. Exploration of the identified drilling targets at Cuiba project will begin immediately. At Pontes e
Lacerda ATN is mobilising a drilling rig to drill out the extensions of the Lavrinha deposit. Tailings drilling has recommenced
with improved sample recovery rates following equipment modifications to enable more efficient exploration.
Potential: The two hard rock gold projects provide ATN with access to mineralised ground. The artisan workings at both are a
clear indication of gold bearing mineralisation and old drilling records at Lavrinha recorded several significant intersections.
While there is not sufficient data for a JORC estimate ATN believes Lavrinha could host a 200k - 300k oz gold deposit. The
gold-bearing tailings areas have a mining history dating back to 1700s. The tailings work is only ATN\'s first step in a plan to
expand its activities in Brazil.
Overall: ATN is focused on opportunities in Brazil, it divested all its Australian assets except the prospective ground in the
Ashburton basin. ATN has finalised the 50% acquisition drilling contractor Transdrill. The benefit of this arrangement is already
being realised. The ability to provide exploration drilling is rare in Brazil. The two new project partnerships reflect ATN\'s
capacity to bring a unique ability and expertise to its local partners.
Share price performance
0.00
0.05
0.10
0.15
0.20
May-05 Sep-05 Jan-06 May-06
$
Source: IRESS
Tom Dukovcic (Managing Director)
61 8 9266 0300
www.ashburton-minerals.com.au
Level 6, 33 York Street
Sydney NSW 2000 Australia
Locked Bag 7 Australia Square
Sydney NSW 1215
Phone [phone]
Fax [phone]
ABN 72 085 293 910
www.aer.com.au

[Gelfling]

Rallye europäischer Rohstoffaktien hat noch Schwung
Nach dem jüngsten Kursrutsch rechnen Experten schon bald wieder mit steigenden Notierungen - Titel sind günstig bewertet

Amsterdam - Die Aktien europäischer Metallproduzenten und Bergbaukonzerne haben gute Chancen sich von ihrem Einbruch in der vergangenen Woche - es war der größte seit mindestens 14 Jahren - zu erholen. Denn wegen der Aussichten auf satte Unternehmensgewinne gelten Rohstoffaktien bei Anlegern nach wie vor als eine gute Wahl. "Die Titel von Bergbauunternehmen sind immer noch unwiderstehlich", sagt Richard Robinson, Fondsmanager bei Ashburton. "Sie sind attraktiv bewertet und haben hervorragende Gewinnaussichten, da die enorme Nachfrage nach Rohstoffen anhält, bei weiterhin knappem Angebot."

Angesichts neuer Besorgnis, daß in den USA weitere Leitzinsanhebungen anstehen, gerieten vergangene Woche die Aktienkurse der Rohstoffriesen BHP Billiton und Anglo American ins Trudeln. Und auch die Metallpreise sackten ab. Der Dow Jones Stoxx 600 Basic Resources Index, der die Aktien von 24 Rohstoffproduzenten abbildet, rutschte 13 Prozent ab, dies ist der größte Einbruch seit seiner Einführung 1992. Die Rohstoffbranche führte die Kursverluste in ganz Europa an. Der marktbreite Stoxx 600 verzeichnete mit minus 4,5 Prozent den größten Wochenverlust seit dem Beginn des Rohstoffbooms im März 2003.
In den vergangenen drei Jahren hatten sich die Aktienkurse von Rohstofflieferanten fast verdreifacht, angetrieben durch das enorme Wirtschaftswachstum von Schwellenländern wie China. Vor den Einbruch waren die Preise von Kupfer, Platin, Nickel und Zink im Mai auf Rekordniveaus und der Goldpreis auf ein 26-Jahres-Hoch geklettert. Citigroup hatte am Dienstag vergangener Woche die Kursziele für Bergbaukonzerne angehoben, mit der Begründung, daß diese Konzerne von den relativ niedrigen Lagerbeständen profitieren würden. Die Analysten der Credit Suisse zogen am folgenden Tag nach und rieten Anleger zum Kauf von Rohstoffaktien. Gemessen an den letztjährigen Gewinnen, sind die Rohstoffaktien preiswerter als die im marktbreiten Stoxx 600 abgebildeten Werte. Noch günstiger sind sie auf Basis der für das laufende Jahr erwarteten Gewinne: Im Schnitt werden die Aktien von Rohstoffunternehmen zum zwölffachen des erwarteten Gewinns gehandelt. Zum Ende des Jahres 2005 lag das Kurs-Gewinn-Verhältnis (KGV) noch bei 14,2. Das KGV für den erwarteten Gewinn der Aktien im Stoxx 600 fiel über denselben Zeitraum von 15 auf 13,5.

Der weltgrößte Bergbaukonzern, BHP Billiton hat den Kursrutsch der eigenen Aktie genutzt, um einen geplanten Aktienrückkauf im Volumen von zwei Mrd. Dollar durchzuziehen. Auch die Nummer zwei und drei, Anglo American und Rio Tinto kaufen Aktien zurück. "Die Bergbaukonzerne tun gut daran, ihre enorme Liquidität in Aktien umzuwandeln", sagt Roger Nightingale, Stratege bei Millennium Global Investments in London. Dank höherer Gewinne haben die Rohstoffunternehmen mehr finanziellen Spielraum, um - über die Aktienrückkäufe hinaus - Dividenden auszuschütten, Minen zu entwickeln und neue Vorkommen zu erforschen.

"Wir befinden uns mitten in einer riesigen Rallye", sagt Patrick Casselman von KBC Asset Management in Brüssel. "Es gibt nicht nur eine fundamentale Nachfrage aus China. Auch die spekulative Nachfrage nach Rohstoffen und Bergbauwerten seitens der Investoren ist enorm." Fondsmanager Robinson ist ebenfalls zuversichtlich, daß die Rallye der Rohstoffwerte noch lange nicht zu Ende ist "Die Rohstoffrallye läuft erst seit drei Jahren", so Robinson. "Und im Vergleich zu Europa hat die Industrialisierung Chinas, Indiens und einiger Länder des Mittleren Ostens gewissermaßen erst begonnen."

Die Unternehmen im Basic Resources Index verzeichneten im Schnitt 58 Prozent höhere Gewinne im vergangenen Jahr, mehr als das Doppelte der Gewinnsteigerung bei den Stoxx 600-Unternehmen, die im Schnitt bei 24 Prozent lag. Für dieses Jahr erwarten Analysten einen Gewinnzuwachs von 18 Prozent für die Branche bei plus elf Prozent für die marktbreiten Unternehmen. Bloomberg (22.05.2006)

[Gelfling]

Habe ich von einem netten USER aus einem anderen Thread:

Posted by: Arturo_Bechstone
In reply to: None Date:6/2/2006 4:21:56 AM
Post #of 430

Dear community,

I was suspended from posting at a German message board after I have posted some facts about promoters in general and some promoters who are related to the latest hype in De Beira Goldfields (DBGF). You have to know that as many as 7 (in words "seven" promoters and/or magazines are involved in the above mentioned Frankfurt-play:

- Bullvestor
- Boersenspion
- Commodity Stock Investor
- Blue Sky Level
- Markus Frick
- Rohstoffraketen
- FOCUS Money

In order to intensify the hype the touts cite each other in their publications and some touts (Bullvestor, Rohstoffraketen and BlueSkyLevel) send out several eMail updates a week.

A lot of users of the German message board asked me about my suspension via Boardmail. Due to my suspension I wasn\'t able to reply to them and for that reason I choose to take this detour of posting at investorshub. Please find the postings that might caused my suspension below:

--------------------------------------------------------------------

#27 von Art Bechstein 01.06.06 12:22:41 Beitrag Nr.: 21.902.217
Dieses Posting: versenden | melden | drucken | Antwort schreiben DE BEIRA GOLDFIELDS INC. REGISTERED SHARES


Interessant ist, dass der Director der Gesellschaft, die den Pusherdienst BlueSkyLevel publiziert, gleichzeitig Redakteur bei FOCUS Money ist. So hat FOCUS Money natürlich auch die BlueSkyLevel Werte empfohlen - Beispiele Califonia O+G, Aurora Gold und zuletzt De Beira. Ich weiß ja nicht, was die FOCUS Money Redaktionsleitung tun würde, wenn sie wüßte, dass einer ihrer Redakteure bei einem Bezahl-Pusherdienst involviert ist und die Werte dann auch bei FOCUS Money empfohlen werden....Fakten Fakten Fakten

---------------------------------------------------------------

Translation of the first posting: Explanation; BlueSkyLevel.com is a recently introduced newsletter service with a very aggressive style (lots of eMail updates and blatant "analysis"

The director of the company that operates/publishes BlueSkyLevel.com concurrently is editorial journalist of FOCUS Money (a German financial magazine). FOCUS Money recommended the same stocks than BlueSkyLevel for example California Oil+Gas, Aurora Gold and lately De Beira. I\'m not sure if FOCUS Money\'s head of editorial office would be amused, if he/she knew that one of their editor\'s staff is involved in a pay-stock-service (1 year subscription fee 780 Euro) and that stocks were/are concurrently recommended at both media.



------------------------------------------------------------------

The second posting applies not necessarily to De Beira but to the stock-promotion activities in Germany in general. All information posted below are taken from public sources and the reader should draw his own conclusions:

----------------------------------------------------------------

Der Mann, der die Drähte hier in Europa zieht, ist Pascal Geraths mit seiner IR-Agentur in Salzburg. Er hat IR-Mandate gegen Entgelt übernommen, u.a. bei folgenden Gesellschaften (ohne Anspruch auf Vollständigkeit); der Regelpreis liegt bei 7.500 EUR/mtl meist für einen 6-Monatszeitraum (Quelle: Publikationen der Gesellschaften):

Thor Mining
Maudore
Mawson
Moto Goldmines
Buffalo Gold
Energulf
Amera
Torunigan
Bayswater
Exeter
Rare Element Resources
Vena Resources
Lalo Ventures
Grizzly Diamonds
Newmac
Red Rock Resources
Batavia Mining


Bei diesen Gesellschaften hat er Aktien Optionen erhalten (ohne Anspruch auf Vollständigkeit):

Red Rock 750.000 Optionen 3 GBp
Grizzly Diamonds 150.000 Optionen
Thor Ming 1.000.000 Optionen 3,75 GBp
Rare Element 250.000 Optionen 0,55 C$
Newmac 100.000 Optionen 1,50 C$
Buffalo 100.000 Optionen 0,80 US$
Batavia 4.000.000 Aktien
ISX Resources 125.000 Optionen 0,40/0,50 C$


Diese Gesellschaften, die von Geraths betreut werden, hat der Bullvestor empfohlen:

Thor Mining
Mawson
Moto Goldmines
Buffalo
Energulf
Amera
Tournigan
Exeter
Grizzly Diamonds
Batavia


Bullvestor hat gemäß Disclaimer für die Empfehlungen weder eine Vergütung von den jeweiligen Gesellschaften bekommen, noch von dritter Seite. Mal ehrlich, da würde ich lieber Pascal Geraths sein...


Auch andere Werte, die von Geraths betreut werden/wurden, sind von einschlägigen Pusherpostillen empfohlen worden:

Maudore
Bayswater
Vena Resources
Lalo Ventures
Newmac

und viele davon doppelt und dreifach


Denkt mal drüber nach !!!

---------------------

I give you a translation of the second posting:

Pascal Geraths, head of an Austrian investor relations service occupies a central position within the promotion business over here in Europe. Geraths through his company acquires investor relation mandates and usually gets a monthly payment of 7,500 Euro for a six month period and/or receives additional shares options or shares as payment. I listed the companies (this list is not exhaustive), where he has taken such orders:

Thor Mining
Maudore
Mawson
Moto Goldmines
Buffalo Gold
Energulf
Amera
Torunigan
Bayswater
Exeter
Rare Element Resources
Vena Resources
Lalo Ventures
Grizzly Diamonds
Newmac
Red Rock Resources
Batavia Mining


The following companies granted stock options or issued shares to Geraths (this list is not exhaustive):

Red Rock 750.000 Optionen 3 GBp
Grizzly Diamonds 150.000 Optionen
Thor Ming 1.000.000 Optionen 3,75 GBp
Rare Element 250.000 Optionen 0,55 C$
Newmac 100.000 Optionen 1,50 C$
Buffalo 100.000 Optionen 0,80 US$
Batavia 4.000.000 Aktien
ISX Resources 125.000 Optionen 0,40/0,50 C$ in conjunction with a placement


The following companies that are/were attended by Geraths have been recommended by Bullvestor, a very aggressive stock tout as well from Austria:

Thor Mining
Mawson
Moto Goldmines
Buffalo
Energulf
Amera
Tournigan
Exeter
Grizzly Diamonds
Batavia


According to Bullvestors disclaimer they havn\'t received a compensation neither from the recommended companies nor by any third parties.


Some of the other companies mentioned above were attended by Geraths and have/had a comprehensive exposure in German message board and media coverage:

Maudore
Bayswater
Vena Resources
Lalo Ventures
Newmac

lot\'s of them in more than one tout magazine.


Just think about it !!!

--------------------------------------------------------

Cheers

Arturo



Nun, was sagt uns das.............

[Gelfling]

21 June 2006
The Manager
Company Announcements Office
Australian Stock Exchange Limited
20 Bond Street
SYDNEY NSW 2000
Via Electronic Lodgment
ASHBURTON MINERALS LTD
(“Ashburton” or “the Company”)
CHANGE OF DIRECTOR’S INTEREST
Pursuant to Listing Rule 3.19A.2 of the ASX Listing Rules, the Company gives notice of a
change to the relevant interest in share holding of Director, Mr Rick Crabb, and
accordingly attaches an Appendix 3Y.
Yours faithfully,
Kim Massey
Company Secretary
For further information, please contact:
Ashburton Minerals Ltd
T: [phone]
F: [phone]
E: [e-mail]
Appendix 3Y
Change of Director’s Interest Notice
+ See chapter 19 for defined terms.
Rule 3.19A.2
Appendix 3Y
Change of Director’s Interest Notice
Information or documents not available now must be given to ASX as soon as available. Information and
documents given to ASX become ASX’s property and may be made public.
Introduced 30/9/2001.
Name of entity Ashburton Minerals Limited
ABN 99 008 894 442
We (the entity) give ASX the following information under listing rule 3.19A.2 and as agent for the
director for the purposes of section 205G of the Corporations Act.
Name of Director Rick Wayne Crabb
Date of last notice 17 January 2005
Part 1 - Change of director’s relevant interests in securities
In the case of a trust, this includes interests in the trust made available by the responsible entity of the trust
Note: In the case of a company, interests which come within paragraph (i) of the definition of “notifiable interest of a director” should be
disclosed in this part.
Direct or indirect interest Direct and indirect
Nature of indirect interest
(including registered holder)
Note: Provide details of the circumstances giving rise to the relevant
interest.
Joint Trustee and beneficiary of InterMax
Trust
Date of change 15-20 June 2006
No. of securities held prior to change
Rick Wayne Crabb
Rick Wayne Crabb and Carol Jean ATF
InterMax Trust
18,834 ordinary Fully paid shares
3,139 listed options expiring on 30/03/2007
exercisable at 32 cents each
113,334 ordinary Fully paid shares
53,584 unlisted options expiring on
30/06/2006 exercisable at 12 cents each
1,500,000 unlisted options expiring on
30/06/2006 exercisable at 28 cents each
14,723 listed options expiring on 30/03/2007
exercisable at 32 cents each
Class See above
Number acquired 80,000
11/3/2002 Appendix 3Y Page 1
Appendix 3Y
Change of Director’s Interest Notice
+ See chapter 19 for defined terms.
Number disposed
Value/Consideration
Note: If consideration is non-cash, provide details and estimated
valuation
No. of securities held after change
Rick Wayne Crabb
Rick Wayne Crabb and Carol Jean ATF
InterMax Trust
98,834 ordinary Fully paid shares
3,139 listed options expiring on 30/03/2007
exercisable at 32 cents each
113,334 ordinary Fully paid shares
53,584 unlisted options expiring on
30/06/2006 exercisable at 12 cents each
1,500,000 unlisted options expiring on
30/06/2006 exercisable at 28 cents each
14,723 listed options expiring on 30/03/2007
exercisable at 32 cents each
Nature of change
Example: on-market trade, off-market trade, exercise of options, issue of
securities under dividend reinvestment plan, participation in buy-back
On market trade
Part 2 – Change of director’s interests in contracts
Note: In the case of a company, interests which come within paragraph (ii) of the definition of “notifiable interest of a director” should be
disclosed in this part.
Detail of contract
Nature of interest
Name of registered holder
(if issued securities)
Date of change
No. and class of securities to
which interest related prior to
change
Note: Details are only required for a contract in relation
to which the interest has changed
Interest acquired
Interest disposed
Value/Consideration
Note: If consideration is non-cash, provide details and
an estimated valuation
Appendix 3Y Page 2 11/3/2002
Appendix 3Y
Change of Director’s Interest Notice
+ See chapter 19 for defined terms.
Interest after change
11/3/2002 Appendix 3Y Page 3

[Gelfling]

Guten Abend
melde mich nochmals mit dem Hinweis, dass Ihr Euch die
neue HOMEPAGE (www.ashburton-minerals.com.au) anschauen solltet.
Sie ist noch nicht ganz fertiggestellt.
Eine Deutsche Seite soll demnächst noch eingebunden werden.
Also, informiert EUCH.

Ihr werdet dann bestätigen, dass ASHBURTON ein solider, sehr gut aufgestellter Explorer ist,
der eine sehr gute Zukunft und eine Menge Potential hat!!!!!
Es werden weitere gute Neuigkeiten und Bestätigungen von
positiv verlaufenden Bohrungen pp folgen; da bin ich sicher.

Von mir aus können mich einige als Pusher bezeichnen, aber an
den Fakten kommt keiner vorbei!!!!!!!


Vorläufiges Kursziel meines letzten Postings bleibt natürlich bestehen (00,65€, wobei 00,46 kurzfristig Mal als Unterstützung dienen sollte.)

ASHBURTON: AUF EINEM RICHTIG GUTEN WEG.

[Gelfling]

Guten Abend
melde mich nochmals mit dem Hinweis, dass Ihr Euch die
neue HOMEPAGE (www.ashburton-minerals.com.au) anschauen solltet.
Sie ist noch nicht ganz fertiggestellt.
Eine Deutsche Seite soll demnächst noch eingebunden werden.
Also, informiert EUCH.

Ihr werdet dann bestätigen, dass ASHBURTON ein solider, sehr gut aufgestellter Explorer ist,
der eine sehr gute Zukunft und eine Menge Potential hat!!!!!
Es werden weitere gute Neuigkeiten und Bestätigungen von
positiv verlaufenden Bohrungen pp folgen; da bin ich sicher.

Von mir aus können mich einige als Pusher bezeichnen, aber an
den Fakten kommt keiner vorbei!!!!!!!


Vorläufiges Kursziel meines letzten Postings bleibt natürlich bestehen (00,65€, wobei 00,46 kurzfristig Mal als Unterstützung dienen sollte.)

ASHBURTON: AUF EINEM RICHTIG GUTEN WEG.

[Gelfling]

Wie ich sage:
ASHBURTON-MINERALS: Zuverlässig, pünktlich, gut.

Hier die Fakten:


QUARTERLY REPORT
Q4, for the period ended 30 June 2006
Highlights
• Brazil: Drilling commences at Lavrinha: Drilling has commenced at
the Lavrinha gold prospect, with a total of 25 holes for 1,500 m planned.
Preliminary results are very encouraging with the host shear zone of
silicified quartz-sericite schist identified a further 300 m along strike
from previous drilling. No assay results are yet available.
• Brazil: New Joint Venture with Minmet plc over Cuiaba Gold
Project: A new option and joint venture agreement has been entered
into over ten granted tenements encompassing 380 km2 in the Cuiaba
area in Mato Grosso. An additional regional collaborative agreement
has been reached over the Cuiaba-Pocone area stretching 140 km x 50
km in area. The Minmet ground contains a number of drill-ready
targets.
Ashburton Minerals Ltd is an Australian-based resource company primarily
focused on exploration and development of advanced gold projects in Brazil with
the objective to commence gold production in the near term.
Brazilian Gold Projects
The Company has identified Brazil as offering excellent opportunities to secure
advanced gold projects in a resource rich country possessing good infrastructure
and low sovereign risk. The Company aims to build a significant presence in the
country, principally in the states of Mato Grosso and Goias.
Australian Exploration
The Company continues to evaluate targets in Western Australia deemed
prospective for a range of metals, including gold. Most of these are based on
conceptual targeting and are at the grass roots exploration stage.
BRAZIL EXPLORATION
The Company conducts its activities in Brazil through its wholly owned subsidiary Trans
Pacific Gold Pty Ltd (“TPG”) and that company’s Brazilian registered subsidiary Trans
Pacific Gold Mineracao Ltda (“TPGM”).
TPG is currently active in two areas in central western Brazil, in the state of Mato Grosso
and in the state of Goias. The Company has a two-fold strategy in Brazil: the evaluation of
the potential to reprocess large volumes of artisinal tailings sands, previously untreated by
cyanide, and to secure advanced gold projects which have a clear potential to advance to
production in the near term.
Lavrinha gold prospect, Pontes e Lacerda, Mato Grosso
The Company’s subsidiary, TPGM, commenced drilling at the Lavrinha prospect, located
near the town of Pontes e Lacerda in western Mato Grosso state in Brazil. A programme of
25 holes for 1,500 metres has been planned. The principal aim is to track and establish the
presence of the gold mineralized structure along strike of existing drilling which confirms
gold mineralization of up to 4 m @ 19.22 g/t over a 200 metre strike (Figure 1).
Based on historical drilling results and evidence from prospector workings, the mineralized
zone appears to extend at least 400 m to the NE. This gives the Company confidence to
believe that Lavrinha has the potential to host a gold deposit of the order of 200,000 oz to
300,000 oz.
The drilling is being carried out by Transdrill utilising the multipurpose aircore rig
mobilised from Pocone. The holes were intended to be drilled by the reverse circulation
(“RC”) method, using a conventional hammer with a cross-over system. However, due to
sample retrieval problems via the cross-over, drilling had to resume by the open-hole rotary
air blast (“RAB”) method. This method produces less accurate results, however, it can
effectively indicate the presence and continuity of mineralized structures. On completion
of the current program, should results be favourable, follow up drilling will be undertaken
with a larger capacity RC rig.
Only four of the proposed 25 holes have been drilled to date and assay results are not yet
available. Geological logs of the holes confirm the presence of a wide, 25 m – 50 m,
silicified shear zone with intermittent quartz veining intersected 300 m along strike beyond
the closest previous drill hole, and continuing further to the NE. This gives good cause for
optimism ahead of confirmation by assay results.
Lavrinha is part of a larger project area secured by an option and joint venture agreement
between TPGM and Geomin Geologia e Mineracao Limitada (“Geomin”), a privately
owned Brazilian company. Under the agreement, TPGM has a 3 year option period in
which it is to sole fund US$2 million on exploration and development. At any time within
the three years, if TPGM meets this expenditure, or if TPGM identifies global resources
within the project tenements of in excess of 250,000 oz, a formal joint venture will be
incorporated with TPGM holding a 77.5% interest and Geomin holding a 22.5% interest.
Pocone, Mato Grosso
In the Pocone area in Mato Grosso TPG is involved in the evaluation of a gold tailings
sands reprocessing project and exploration for primary gold mineralisation based initially
over 20 prospecting licences in Pocone.
Pocone Tailings
The tailings project operates in the context of the Brazil Tailings Joint Venture in which
Areias Douradas Pty Ltd, a wholly owned subsidiary of Cougar Metals NL, holds a 25%
carried interest, with TPG as manager.
The second round of drilling of the tailings at the Ourinhos prospect has concluded with
1,214 m of aircore drilling completed over Tanks 1, 2 and 6. Some 650 samples, being 2-
metre composites, were collected.
Orientation sampling indicated that analysis of a larger sample may give more
representative results due to the presence of free gold within the tailings sands.
Consequently, the samples will be analysed by a bulk cyanide leach process of a 2 kg field
sample. Analysis will be through ALS Chemex who, although they have facilities in
Brazil, carry out this type of analysis through their Perth laboratories in Western Australia.
Samples will be shipped to Perth in the next week.
Results are not expected for at least another four weeks to six weeks.
Cuiaba Gold Project, Mato Grosso
Building on its presence in the region, the company entered into a Heads of Agreement
with AIM-listed Minmet plc (“Minmet”) relating to the Cuiaba Gold Project in the state of
Mato Grosso in Brazil.
The Cuiaba-Pocone district is an area of significant gold mineralisation that contains
numerous private (garimpeiro) gold workings scattered over a 120 km strike. By virtue of
the scale of these operations, Ashburton is of the opinion that the district holds potential to
host a number of larger, company-scale (>300,000 oz) gold deposits. Nevertheless, the
area remains essentially unexplored by Australian standards.
Minmet, through its Brazilian subsidiary Mineradora de Bauxita (“MBL”), holds ten
granted exploration permits covering some 380 km2 within the district and encompassing
ground of pronounced mining activity (see attached map, Figure 2). In addition, MBL has
a large amount of technical data, including an airborne geophysical survey covering an area
of approximately 140 km x 50 km and extending over the entire Cuiaba-Pocone district.
The extent of the geophysical survey will define the Cuiaba Gold Project.
The Cuiaba Gold Project consists of two parts, namely:
1. The MBL tenements; and
2. The remaining ground within the project area, defined by the extent of the
geophysical survey.
Under the terms of the agreement Ashburton secured a three year option period by issuing
to Minmet:
a) 1,609,332 fully paid ordinary shares in Ashburton; and
b) 500,000 free attaching unlisted options, with an exercise price of 15 cents each by
30 June 2009.
During the option period Ashburton is to sole fund A$800,000 in exploration expenditure
to earn a 75% equity interest in the MBL tenements. Full details of the terms have been
released in a previous announcement to the ASX, dated 8 May 2006.
The agreement with Minmet gives Ashburton access to potential hard rock gold deposits in
areas of demonstrated gold mineralisation and represents a significant addition to
Ashburton’s current involvement in the region through the Pocone tailings evaluation
project.
Desktop study and interpretation of the large amount of data acquired as a result of entering
into this joint venture has commenced by a Perth-based consultant geologist. This work is
confirming the highly prospective nature of the Cuiaba Gold Project and work is
continuing as a priority to classify and prioritise drilling targets to be tested on the return of
the Transdrill rig from the Lavrinha prospect.
An early standout target is the Tamandua vein swarm which is an area some 1.4 km long
by 0.5 km wide and which is estimated to contain in excess of 200 subvertical transcurrent
tensional veins ranging from 10 cm to several metres in thickness. The surface area has
been scraped and worked for secondary gold nuggets and some of the larger veins have
been mined to an undetermined depth (Figure 3).
CORPORATE
Issue of shares and options to Minmet plc
During the quarter the Company issued 1,609,332 Ordinary Fully Paid Shares and 500,000
Unlisted Options (exercisable at 15 cents each on or before 30 June 009) to AIM-listed
Minmet plc as per the terms of the Heads of Agreement signed with Minmet in relation to
the Cuiaba Gold Project in Brazil.
Expiry of options
A total of 12,229,825 unlisted options expired during the quarter, comprising 3,729,825
options exercisable at 12 cents each by 30 June 2006, and 8,500,000 options exercisable at
28 cents each by 30 June 2006.
Tom Dukovcic
Managing Director
26 July 2006
The information contained in this report that relates to Exploration Results or Mineral Resources is based on information compiled
by Mr Tom Dukovcic who is a Member of the Australian Institute of Geoscientists. Mr Dukovcic is a full-time employee of the
Company and has sufficient relevant experience to qualify as a Competent Person as defined in the 2004 Edition of the
“Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Dukovcic consents to the
inclusion in this report of information compiled by him in the form and context in which it appears.
For further information, visit http://www.ashburton-minerals.com.au/ and join our e-list.
Figure 1. Gold workings along the Lavrinha shear zone
Figure 2. Map showing extent of Cuiaba Gold Project, MBL tenements and
garimpeiro workings
Figure 3. Tamandua Vein Swarm, Cuiaba Gold Project.
Area approximately 1.5 km x 0.5 km.
Appendix 5B
Mining exploration entity quarterly report
Rule 5.3
Appendix 5B
Mining exploration entity quarterly report
Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001.
Name of entity
Ashburton Minerals Ltd
ABN Quarter ended (“current quarter”)
99 008 894 442 30 June 2006
Consolidated statement of cash flows
Cash flows related to operating activities
Current quarter

Year to date
(12 months)

1.1 Receipts from product sales and related debtors
-
-
1.2 Payments for
(a) exploration and evaluation
(b) development
(c) production
(d) administration
(342)
-
-
(194)
(955)
(96)
-
(993)
1.3 Dividends received - -
1.4 Interest and other items of a similar nature
received
19 95
1.5 Interest and other costs of finance paid - (9)
1.6 Income taxes paid - -
1.7 Other (provide details if material)
Payment for release of Royalty Deed over
Yandan Tenements
-
(83)
Net Operating Cash Flows (517)
(2,041)
Cash flows related to investing activities
1.8 Payment for purchases of: (a)prospects
(b)equity investments
(c) other fixed assets
-
-
(25)
-
(150)
(26)
1.9 Proceeds from sale of::
(a)prospects
(b)equity investments
(c)other fixed assets
-
-
-
364
996
1
1.10 Loans to other entities - -
1.11 Loans repaid by other entities - -
1.12 Other (provide details if material)
Cash from Transdrill purchase
Rig Transportation & Customs Duty
29
29
(115)
Net investing cash flows
4
1,099
1.13 Total operating and investing cash flows (carried
forward)
(513) (942)
+ See chapter 19 for defined terms.
30/9/2001 Appendix 5B Page 1
Appendix 5B
Mining exploration entity quarterly report
1.13 Total operating and investing cash flows
(brought forward)
(513) (942)
Cash flows related to financing activities
1.14 Proceeds from issues of shares, options, etc. - -
1.15 Proceeds from sale of forfeited shares - -
1.16 Proceeds from borrowings - 200
1.17 Repayment of borrowings - (202)
1.18 Dividends paid - -
1.19 Other (Capital Raising Expense) - -
Net financing cash flows - (2)
Net increase (decrease) in cash held
(513)
(944)
1.20 Cash at beginning of quarter/year to date 1,477 1,908
1.21 Exchange rate adjustments to item 1.20
1.22 Cash at end of quarter 964 964
Payments to directors of the entity and associates of the directors
Payments to related entities of the entity and associates of the related entities
Current quarter
\'000
1.23
Aggregate amount of payments to the parties included in item 1.2
53
1.24
Aggregate amount of loans to the parties included in item 1.10
-
1.25
Explanation necessary for an understanding of the transactions
Payments to directors and associates of directors are inclusive of GST where applicable and are
split as follows:
Salaries 47
Directors Fees 6
Non-cash financing and investing activities
2.1 Details of financing and investing transactions which have had a material effect on consolidated
assets and liabilities but did not involve cash flows
Nil
2.2 Details of outlays made by other entities to establish or increase their share in projects in which the
reporting entity has an interest
Nil
+ See chapter 19 for defined terms.
Appendix 5B Page 2 30/9/2001
Appendix 5B
Mining exploration entity quarterly report
Financing facilities available
Add notes as necessary for an understanding of the position.
Amount available

Amount used

3.1 Loan facilities
0
0
3.2 Credit standby arrangements
0 0
Estimated cash outflows for next quarter

4.1 Exploration and evaluation
300
4.2 Development
0
Total
300
Reconciliation of cash
Reconciliation of cash at the end of the quarter (as
shown in the consolidated statement of cash flows) to
the related items in the accounts is as follows.
Current quarter

Previous quarter

5.1 Cash on hand and at bank 397 426
5.2 Deposits at call 567 1,051
5.3 Bank overdraft - -
5.4 Other (provide details) – Performance Bond
Facility
- -
Total: cash at end of quarter (item 1.22) 964 1,477
Changes in interests in mining tenements
Tenement
reference
Nature of interest
(note (2))
Interest at
beginning
of quarter
Interest at
end of
quarter
6.1 Interests in mining
tenements relinquished,
reduced or lapsed
- - - -
6.2 Interests in mining
tenements acquired or
increased
-
-
-
-
+ See chapter 19 for defined terms.
30/9/2001 Appendix 5B Page 3
Appendix 5B
Mining exploration entity quarterly report
Issued and quoted securities at end of current quarter
Description includes rate of interest and any redemption or conversion rights together with prices and dates.
Total number Number quoted Issue price per
security (see note
3) (cents)
Amount paid up per
security (see note 3)
(cents)
7.1 Preference
+securities
(description)
-
-
-
-
7.2 Changes during
quarter
(a) Increases
through issues
(b) Decreases
through returns
of capital, buybacks,
redemptions
-
-
-
-
7.3 +Ordinary
securities
79,640,005 79,640,005 - -
7.4 Changes during
quarter
(a) Increases
through issues
(b) Decreases
through returns
of capital, buybacks
1,609,332
1,609,332
6.2
-
7.5 +Convertible
debt securities
(description)
-
-
-
-
7.6 Changes during
quarter
(a) Increases
through issues
(b) Decreases
through
securities
matured,
converted
-
-
-
-
+ See chapter 19 for defined terms.
Appendix 5B Page 4 30/9/2001
Appendix 5B
Mining exploration entity quarterly report
7.7 Options
(description and
conversion
factor)
(ATNO)
Pro-rata nonrenounceable
rights issue
12,132,363
(ATNAO)
Brazil Tailings
JV Agreement
Options
5,000,000
(ATNAS)
CuibaGold
Project Option
Agreement
500,000
12,132,363
Exercise price
32 cents
25 cents
15 cents
Expiry date
31/03/2007
06/09/2007
30/06/2009
7.8 Issued during
quarter
(ATNAS)
CuibaGold
Project Option
Agreement
500,000
15 cents 30/06/2009
7.9 Exercised during
quarter
nil
7.10 Expired during
quarter
(ATNAK)
Loyalty Option
Scheme
3,729,825
(ATNAM)
Director Options
8,500,000
12 cents
28 cents
30/06/2006
30/06/2006
7.11 Debentures
(totals only)
7.12 Unsecured
notes (totals
only)
+ See chapter 19 for defined terms.
30/9/2001 Appendix 5B Page 5
Appendix 5B
Mining exploration entity quarterly report
Compliance statement
1 This statement has been prepared under accounting policies which comply with
accounting standards as defined in the Corporations Act or other standards acceptable
to ASX (see note 4).
2 This statement does give a true and fair view of the matters disclosed.
Sign here: ............................................................ Date: ...........28/07/06.................
(Company Secretary)
Print name: Kim Massey
Notes
1 The quarterly report provides a basis for informing the market how the entity’s
activities have been financed for the past quarter and the effect on its cash position.
An entity wanting to disclose additional information is encouraged to do so, in a note
or notes attached to this report.
2 The “Nature of interest” (items 6.1 and 6.2) includes options in respect of interests in
mining tenements acquired, exercised or lapsed during the reporting period. If the
entity is involved in a joint venture agreement and there are conditions precedent
which will change its percentage interest in a mining tenement, it should disclose the
change of percentage interest and conditions precedent in the list required for items
6.1 and 6.2.
3 Issued and quoted securities The issue price and amount paid up is not required in
items 7.1 and 7.3 for fully paid securities.
4 The definitions in, and provisions of, AASB 1022: Accounting for Extractive
Industries and AASB 1026: Statement of Cash Flows apply to this report.
5 Accounting Standards ASX will accept, for example, the use of International
Accounting Standards for foreign entities. If the standards used do not address a topic,
the Australian standard on that topic (if any) must be complied with.
== == == == ==
+ See chapter 19 for defined terms.
Appendix 5B Page 6 30/9/2001

[Gelfling]

28 September 2006
The Manager
Company Announcements Office
Australian Stock Exchange Limited
20 Bond Street
SYDNEY NSW 2000
Via Electronic Lodgement
ASHBURTON MINERALS LTD
(“Ashburton” or “the Company”)
FINANCIAL REPORT
Please find attached the Company’s Financial Report for the period ended 30 June 2006.
Yours faithfully
Kim Massey
Company Secretary
For further information, please contact:
Ashburton Minerals Ltd
T: [phone]
F: [phone]
E: [e-mail]
ASHBURTON MINERALS LTD
AND CONTROLLED ENTITIES
ABN 99 008 894 442
FINANCIAL REPORT
FOR THE YEAR ENDED
30 JUNE 2006
TABLE OF CONTENTS
DIRECTORS’ REPORT..........................................................................................................................................................1
AUDITORS INDEPENDENCE DECLARATION....................................................................................................................11
FINANCIAL STATEMENTS
Income Statement........................................................................................................................................................12
Balance Sheet.............................................................................................................................................................13
Statement of changes in equity..................................................................................................................................14
Cashflow Statement......................................................................................................................................................16
Notes to and forming part of the Financial Statements.................................................................................................17
DIRECTORS’ DECLARATION.............................................................................................................................................52
INDEPENDENT AUDIT REPORT TO THE MEMBERS........................................................................................................53
CORPORATE GOVERNANCE STATEMENT......................................................................................................................55
CORPORATE DIRECTORY
Directors
Rick CRABB
(Non-Executive Chairman)
Tom DUKOVCIC
(Managing Director)
Rodney DUNN
(Executive Director)
Company Secretary
Kim MASSEY
Registered Office
Level 2
35-37 Havelock Street
WEST PERTH WA 6005
Telephone: [phone]
Facsimile: [phone]
Principal Place of Business
Level 2
35-37 Havelock Street
WEST PERTH WA 6005
Telephone: [phone]
Facsimile: [phone]
Website: www.ashburton-minerals.com.au
Solicitors
Blakiston & Crabb
1202 Hay Street
WEST PERTH WA 6005
Telephone: [phone]
Facsimile: [phone]
Country of Incorporation
Australia
Auditors
Moore Stephens Chartered Accountants
Level 3
12 St Georges Terrace
PERTH WA 6000
Telephone: [phone]
Facsimile: [phone]
Share Registry
Security Transfer Registrars Pty Ltd
770 Canning Highway
APPLECROSS WA 6153
Telephone: [phone]
Facsimile: [phone]
Home Exchange
Australian Stock Exchange Limited
Exchange Plaza
2 The Esplanade
PERTH WA 6000
ASX Code: ATN, ATNO
ASHBURTON MINERALS LTD
ABN 99 008 894 442
AND CONTROLLED ENTITIES
1
DIRECTORS’ REPORT
Your Directors present their report on the Company and its Controlled Entities for the financial year ended 30 June 2006.
DIRECTORS
The names of the Directors in office and at any time during, or since the end of, the year are:
Mr Rick Crabb
Mr Tom Dukovcic
Mr Rodney Dunn
Directors have been in office since the start of the financial year to the date of this report unless otherwise stated.
COMPANY SECRETARY
The following person held the position of Company Secretary at the end of the financial year:
Mr Kim Massey – BA, BCom, CA. Mr. Massey is a chartered accountant and senior executive of Grange Consulting, where he specialises in Corporate Advisory and Financial Management Services. Kim has considerable corporate experience particularly in the mining industry, working for a number of ASX listed companies, gaining extensive exposure to mining operations and exploration activities.
PRINCIPAL ACTIVITIES
The principal activity of the Economic Entity during the financial year was mineral exploration.
The following significant changes in the nature of the principal activities occurred during the financial year:
• the Economic Entity purchased a 50% interest in drilling contractor Transdrill Pty Ltd; and
• the Economic Entity disposed of its wholly owned subsidiary Wirralie Mines Pty Ltd.
OPERATING RESULTS
The consolidated loss of the Economic Entity for the financial year after providing for income tax amounted to $2,481,106 (2005: $2,078,062)
DIVIDENDS PAID OR RECOMMENDED
The Directors recommend that no dividend be paid for the year ended 30 June 2006, nor have any amounts been paid or declared by way of dividend since the end of the previous financial year.
REVIEW OF OPERATIONS
During the year under review the Company’s main activities were the evaluation of gold prospects in Brazil, which included the further assessment of artisinal tailings deposits and the building of a portfolio of ‘hard rock’ gold projects primarily in the state of Mato Grosso.
The Company’s activities were funded from the proceeds of the sale in October 2005 of Wirralie Mines Pty Ltd and that company’s tenements in NE Queensland. The Company further reduced its tenement portfolio in Australia by returning its East Kimberley tenements to its various joint venture partners and minority interest holders, having been unable to farm out the properties to new parties.
The Company retains a presence in Australia through its holdings in the Ashburton region of Western Australia where it holds two exploration licences and has a further two licences under application.
ASHBURTON MINERALS LTD
ABN 99 008 894 442
AND CONTROLLED ENTITIES
2
DIRECTORS’ REPORT
REVIEW OF OPERATIONS (Cont’d)
In February 2006 the Company acquired a 50% interest in drilling contractor Transdrill Pty Ltd, the Company’s drilling contractor in Brazil. The acquisition provides security of access to an exploration drilling rig in a country where such equipment is scarce.
Ashburton undertakes its Brazilian activities through its wholly owned subsidiary Trans Pacific Gold Pty Ltd (“TPG”) and that company’s Brazilian registered subsidiary Trans Pacific Gold Mineracao Limitada (“TPGM”). In Brazil, the Company is involved in five main projects as detailed below.
In the state of Mato Grosso:
• Cuiaba Gold Project
• Pocone Tailings JV
• Pocone Town Leases
• Geomin Pontes e Lacerda JV
In the state of Goias:
• Mina Inglesa
The Cuiaba Gold Project was created in May 2006 when the Company signed a heads of agreement with AIM-listed Minmet plc under which TPGM would earn a 75% interest in a portfolio of ten tenements in the Cuiaba area held by Minmet’s Brazilian subsidiary Mineradora de Bauxita Limitada (“MBL”). In addition, Minmet passed over to the Company an extensive dataset including data from an airborne geophysical survey, the extent of which, being approximately 6,000 km2, defines the area of the Cuiaba Gold Project.
Under the agreement, Ashburton issued to Minmet 1,609,332 fully paid ordinary shares and 500,000 free unlisted options, exercisable at 15 cents each by 30 June 2009. To earn a 75% interest in the MBL tenements, the Company must spend A$800,000 on exploration on the Cuiaba Gold Project within a three year period.
Initial work over this area was concerned with the study and reinterpretation of the MBL data, and this work is expected to continue into the next year. Work to date has already highlighted target areas which TPGM has secured by way of new tenement applications. Current efforts are directed towards identifying drilling targets for testing prior to the upcoming wet season.
The Cuiaba-Pocone region is defined by numerous prospector-scale gold workings over a strike length of in excess of 150 km within folded and weakly metamorphosed Proterozoic sediments. Current private-scale mining activity is centred on the exploitation of narrow quartz veins and adjacent wall rock.
The Company’s exploration targets include this style of mineralisation but are primarily directed towards large, low grade disseminated gold deposits of the Carlin type and Paracatu type, which are typically of the order of several million ounces in size.
Very little modern exploration has been completed in the area, with practically no systematic work undertaken. As a result, the area remains largely unexplored and the Company has an exciting opportunity to take advantage of its early strategic position in the area by applying a systematic and deliberate exploration approach.
The Pocone Town Leases comprise 18 small tenements held by TPGM. The tenements are scattered close to the town of Pocone and variously contain tailings and small scale historical gold workings and are an adjunct to both the Tailngs JV and the Cuiaba Gold Project.
The Tailings Joint Venture applies to ground within a 60 km radius of the town of Pocone, within which Areias Douradas Pty Ltd, a wholly owned subsidiary of Cougar Metals NL, holds a 25% carried interest in any tailings sands acquired by TPGM. In the state of Goias the Tailings JV applies to an area within a 20 km radius of the town of Crixas.
ASHBURTON MINERALS LTD
ABN 99 008 894 442
AND CONTROLLED ENTITIES
3
DIRECTORS’ REPORT
REVIEW OF OPERATIONS (Cont’d)
The Pocone area contains large volumes of artisinal tailings sands which may potentially support an economic reprocessing operation. All of the private mining operations in the area recover the gold by means of gravity concentration followed by
extraction of the gold from the concentrate with mercury to form an amalgam that is subsequently smelted to release the gold. In this primitive process the ore is not treated with cyanide.
TPGM is currently evaluating a series of tailings dams in the Ourinhos area, some 20 km north of Pocone. Ourinhos is a 10 km zone of open pit gold workings, some of which exceed 50 m in depth. The tailings at Ourinhos occur mostly within rock-walled dams with lesser volumes found as uncontained mounds of older, coarser sands. The volume of tailings contained in dams at Ourinhos is approximately 2.2 million cubic metres (or, 3.74 million tonnes at an assumed bulk density of 1.7 t/m3). Further, unquantified, tailings sands are contained within the MBL tenements and within the TPGM tenements and applications. Additional tailings sands are present at other sites of gold mining activity in the region to which the Company will be negotiating access rights.
Four of the Ourinhos dams have been aircore drilled by TPGM to date utilising the Transdrill rig. Samples from the last three dams drilled are currently in the laboratory, with half of the samples (310 samples) submitted for gold analysis by aqua regia digest through a Brazilian laboratory, and the other half (310 samples) shipped to Perth, Western Australia for analysis of gold by the bulk cyanide leach method. Depending on recoveries, tailings grades as low as 0.4 g/t may prove economic if present in sufficiently large volumes.
At the Pontes e Lacerda area in western Mato Grosso TPGM has a joint venture with Geomin Geologia e Mineracao Limitada (“Geomin”) over six tenements which include the Lavrinha prospect where drilling in the mid 1990s identified high grade gold mineralisation (eg, 4 m @ 19.22 g/t). The Company is awaiting the results of a recently completed drilling program at Lavrinha aimed at testing for extensions of the mineralised zone along strike.
In the state of Goias, TPGM is still awaiting official confirmation from the local environmental agency that TPGM will not be held responsible for the rehabilitation of pre-existing land disturbances over the Mina Inglesa tenement. Due to the extensive historical and garimpeiro mining activity on this site, TPGM will not commence work until this undertaking is provided by the government authorities. The tenement contains a large volume of old tailings sands as well as the historical Mina Inglesa gold mine where previous limited drilling recorded intercepts of up to 2.9 m @ 14.88 g/t and underground sampling returned results of 3 m @ 19.83 g/t and 0.7 m @ 66.06 g/t.
The Company is continually reviewing new opportunities in Brazil, both in gold and other commodities such as iron ore, as it seeks to build a valuable portfolio of advanced projects which have the potential to progress to resource status in a relatively short time.
FINANCIAL POSITION
The net assets of the Economic Entity have decreased by $2,317,340 from $6,314,124 at 30 June 2005 to $3,996,784 in 2006. This decrease has largely resulted from the disposal of Wirralie Mines Pty Ltd.
The Directors believe the group is in a strong and stable financial position to expand and grow its current operations.
SIGNIFICANT CHANGES IN STATE OF AFFAIRS
The following significant changes in the state of affairs of the Parent Entity occurred during the financial year:
• On 12 July 2005 the Company issued 639,625 ordinary shares as full repayment of a loan at a deemed issue price of 8 cents;
• On 12 October 2005 the Economic Entity disposed of its wholly owned subsidiary Wirralie Mines Pty Ltd;
• On 22 February 2006 the Economic Entity purchased a 50% interest in drilling contractor Transdrill Pty Ltd; and
• On 8 May 2006 the Company issued 1,609,332 ordinary shares at a deemed issue price of 6.2 cents and 500,000 options in consideration for an option agreement over the Cuiaba Gold Project.
ASHBURTON MINERALS LTD
ABN 99 008 894 442
AND CONTROLLED ENTITIES
4
DIRECTORS’ REPORT
ADOPTION OF AUSTRALIAN EQUIVALENTS TO IFRS
As a result of the introduction of Australian equivalents to International Financial Reporting Standards (AIFRS), the Company’s financial report has been prepared in accordance with those standards. A reconciliation of adjustments arising on the transition to AIFRS is included in Note 2 to this report.
AFTER BALANCE DATE EVENTS
No matters or circumstances have arisen since the end of the financial year which significantly affected or may significantly affect the operations of the Economic Entity, the results of those operations, or the state of affairs of the Economic Entity in future financial years.
FUTURE DEVELOPMENTS, PROSPECTS AND BUSINESS STRATEGIES
The Company will continue with its present strategy of investment in and exploration of advanced and prospective mineral projects primarily in Brazil, but also in Australia. The nature of the Company’s business is speculative and the board considers that comments on expected results or success of this strategy are not considered appropriate or in the best interests of the Company.
ENVIRONMENTAL ISSUES
The Economic Entity’s operations are not regulated by any significant environmental regulation under a law of the Commonwealth or of a state or territory.
While environmental regulations in Brazil are not as sophisticated as in Australia, the Company intends applying world’s best practice to all of its activities in that country, especially in regard to environmental issues.
ASHBURTON MINERALS LTD
ABN 99 008 894 442
AND CONTROLLED ENTITIES
5
DIRECTORS’ REPORT
INFORMATION ON DIRECTORS
Mr Rick Crabb
-
Chairman (Non-executive).
Qualifications
-
BJuris (Hons), LLB, MBA.
Experience
-
Mr Crabb is a lawyer and formerly a consultant with legal practice Blakiston & Crabb. He specialises in mining, corporate and commercial law and has had extensive experience in legal issues arising in resource development, including contract negotiation and financing. He is a director of several listed companies and brings to the Board valuable legal, corporate and mining experience.
Interest in Shares and Options
-
Mr Crabb holds 132,168 ordinary shares and 17,862 options.
Directorships held in other listed entities
-
During the past three years Mr Crabb’s directorships in other listed entitles are as a current director of Alcaston Mining NL from 22 August 2001, Otto Energy Ltd from 19 November 2004, Paladin Resources Ltd from 8 February 1994, Port Bouvard Ltd from 2 December 1996, Thundelarra Exploration Ltd from 8 September 2003, Royal Resources from 23 February 2004 and as a former director of ST Synergy Ltd from 28 September 2001 to 6 May 2005 and Deep Yellow Ltd from 11 April 2003 to 20 August 2004.
Mr Tom Dukovcic
-
Managing Director (Executive).
Qualifications
-
BSc (Hons) MAIG
Experience
-
Mr Dukovcic is a geologist with over 20 years experience in exploration and development. He has worked in a variety of regions in Australia, which include the Yilgarn, the Kimberley and NE Queensland and was involved in the investigation of gold opportunities in southeast Asia. Mr Dukovcic has been directly involved with the management of gold discoveries at various locations in Western Australia, including Transvaal, Cuddingwarra and Leonora. Mr Dukovcic is a director of several private mineral exploration companies and brings valuable exploration, geological and management expertise to the Board.
Interest in Shares and Options
-
Mr Dukovcic holds 601,126 ordinary shares and 91,020 options.
Mr Rodney Dunn
-
Director (Executive)
Experience
-
Mr Dunn has been actively involved in the mining industry for approximately 24 years. Mr Dunn (together with Mr Crabb) was a founding director of the successful Gasgoyne Gold Mines NL. He is also a director of a number of private companies involved in mineral exploration. Mr Dunn brings valuable corporate and contract management experience to the Board.
Interest in Shares and Options
-
Mr Dunn holds 3,441,678 ordinary shares and 567,364 options.
ASHBURTON MINERALS LTD
ABN 99 008 894 442
AND CONTROLLED ENTITIES
6
DIRECTORS’ REPORT
REMUNERATION REPORT
This report details the nature and amount of remuneration for each Director of Ashburton Minerals Limited.
Remuneration Policy
The remuneration policy of Ashburton Minerals Limited has been designed to align director and executive objectives with shareholder and business objectives by providing a fixed remuneration component and offering specific long-term incentives based on key performance areas affecting the Economic Entity’s financial results. The Board of Ashburton Minerals Limited believes the remuneration policy to be appropriate and effective in its ability to attract and retain appropriate executives and directors to run and manage the Economic Entity, as well as create goal congruence between directors, executives and shareholders.
The Board’s policy for determining the nature and amount of remuneration for board members and senior executives of the Company is as follows:
The remuneration policy, setting the terms and conditions for the executive directors and other senior executives, was developed and approved by the board.
Non-executive directors, executive directors and senior executives receive a base salary (which is based on factors such as length of service and experience), which is calculated on a total cost basis and includes any FBT charges related to employee benefits including motor vehicles, as well as employer contributions to superannuation funds.
Executive directors can be employed by the Company on a consultancy basis, on board approval, with remuneration and terms stipulated in individual consultancy agreements.
The board reviews executive packages annually by reference to the Company’s performance, executive performance and comparable information from industry sectors and other listed companies in similar industries. In addition external consultants may be used to provide analysis and advice to ensure the directors and senior executives’ remuneration is competitive in the market place.
Directors and senior executives receive a superannuation guarantee contribution required by the government, which is currently 9%, and do not receive any other retirement benefits. Some individuals, however, may choose to sacrifice part of their salary to increase payments towards superannuation.
All remuneration paid to directors and executives is valued at the cost to the Company and expensed. Shares given to directors and executives are valued as the difference between the market price of those shares and the amount paid by the director or executive. Options are valued using the Black-Scholes methodology.
The board policy is to remunerate non-executive directors at market rates for comparable companies for time, commitment and responsibilities. The Board determines payments to the non-executive directors and reviews their remuneration annually, based on market practice, duties and accountability. Independent external advice is sought when required. The maximum aggregate amount of fees that can be paid to non-executive directors is subject to approval by shareholders at the Annual General Meeting. Fees for non-executive directors are not linked to the performance of the Economic Entity. The Directors are not required to hold any shares in the Company under the Constitution of the Company, however, to align directors’ interests with shareholder interests, the directors are encouraged to hold shares in the Company.
The Board believes that it has implemented suitable practices and procedures that are appropriate for an organisation of this type and size.
ASHBURTON MINERALS LTD
ABN 99 008 894 442
AND CONTROLLED ENTITIES
7
DIRECTORS’ REPORT
Remuneration Committee
During the year ended 30 June 2006, the Economic Entity did not have a separately established nomination or remuneration committee. Considering the size of the Economic Entity and the number of directors, the Board is of the view that these functions could be efficiently performed with full Board participation.
Remuneration Structure
In accordance with best practice corporate governance, the structure of non-executive director and senior manager remuneration is separate and distinct.
Non-Executive Director Remuneration
Objective
The Board seeks to set aggregate remuneration at a level which provides the Economic Entity with the ability to attract and retain directors of the highest calibre, whilst incurring a cost which is acceptable to shareholders.
Structure
The Board policy is to remunerate non-executive directors at market rates for comparable companies for time, commitment and responsibilities. The remuneration of non-executive directors is reviewed annually, based on market practice, duties and accountability. Independent external advice is sought when required. The maximum aggregate amount of fees that can be paid to non-executive directors is subject to approval by shareholders at the Annual General Meeting. Fees for non-executive directors are not linked to the performance of the Economic Entity. However, to align directors’ interests with shareholders’ interests, the directors are encouraged to hold shares in the Company.
Non-executive directors receive a base salary (which is based on factors such as length of service and experience), which is calculated on a total cost basis and includes any FBT charges related to employee benefits including motor vehicles, as well as employer contributions to superannuation funds.
The Directors have resolved that non-executive directors’ fees are $36,000 per annum for each non-executive director and $36,000 per annum for the non-executive Chairman. Non-executive Directors may also be remunerated for additional specialised services performed at the request of the Board and reimbursed for reasonable expense incurred by directors on Company business.
Senior Manager and Executive Director Remuneration
Objective
The Company aims to reward executives with a level and mix of remuneration commensurate with their position and responsibilities within the Company as to:
• Align the interests of executives with those of shareholders;
• Link reward with the strategic goals and performance of the Company; and
• Ensure total remuneration is competitive by market standards
Structure
Executive directors are provided with a base salary (which is based on factors such as length of service and experience), which is calculated on a total cost basis and includes any FBT charges related to employee benefits including motor vehicles, as well as employer contributions to superannuation funds.
ASHBURTON MINERALS LTD
ABN 99 008 894 442
AND CONTROLLED ENTITIES
8
DIRECTORS’ REPORT
Company Performance, Shareholder Wealth and Directors’ and Executives’ Remuneration
The table below shows the gross revenue, losses and earnings per share for the last five years for the listed Entity.
2002
2003
2004
$
2005
$
2006
$
Revenue
401,876
126,849
156,035
196,049
118,170
Net Loss
(1,842,679)
(854,464)
(432,055)
(2,078,062)
(2,481,106)
Earnings Per Share (cents)
(0.79)
(0.28)
(0.78)
(2.68)
(3.17)
Details of Remuneration
The remuneration for each director of the Economic Entity during the year was as follows:
2006
Salary, Fees and Commissions
Superannuation Contribution
Cash Bonus
Other
Options
Total
Performance Related
$
$
$
$
$
$
%
Directors
Mr Rick Crabb
33,000
2,970
-
-
-
35,970
-
Mr Tom Dukovcic
170,000
15,300
-
-
-
185,300
-
Mr Rodney Dunn
125,000
11,250
-
-
-
136,250
-
328,000
29,520
-
-
-
357,520
-
There were no other key management personnel during the year.
2005
Salary, Fees and Commissions
Superannuation Contribution
Cash Bonus
Other
Equity Shares
Total
Performance Related
$
$
$
$
$
$
%
Directors
Mr Rick Crabb
36,000
3,240
-
-
-
39,240
-
Mr Tom Dukovcic
173,269
15,595
-
8,096
-
196,960
-
Mr Rodney Dunn
127,504
11,475
-
-
-
138,979
-
-
336,773
30,310
-
8,096
-
375,179
-
Options issued as part of remuneration for the year ended 30 June 2006
There were no Options issued or shares issued on the exercise of such options to directors and executives as part of their remuneration.
Employment Contracts of Directors and Other Key Management Personnel
There are currently no employment contracts in place between the Company and Executive Directors.
ASHBURTON MINERALS LTD
ABN 99 008 894 442
AND CONTROLLED ENTITIES
9
DIRECTORS’ REPORT
MEETINGS OF DIRECTORS
During the financial year, 6 meetings of directors (including committees of directors) were held. Attendances by each director during the year were as follows:
Board Meetings
Director
Attended
Held
Mr Rick Crabb
6
6
Mr Tom Dukovcic
6
6
Mr Rodney Dunn
6
6
INDEMNIFYING OFFICERS OR AUDITOR
The Company has not, during or since the financial year, in respect of any person who is or has been a director, officer or auditor of the Company or a related body corporate:
• Indemnified or made any relevant agreement for indemnifying against a liability incurred as a director, officer or auditor, including costs and expenses in successfully defending legal proceedings; or
• Paid or agreed to pay a premium in respect of a contract insuring against a liability incurred as a director, officer or auditor for the costs or expenses to defend legal proceedings.
OPTIONS
At the date of this report, the unissued ordinary shares of Ashburton Minerals Limited under option are as follows:
Grant Date
Date of Expiry
Exercise Price
Number Under-Option
23 April 2004
31 March 2007
$0.32
12,132,363
17 September 2004
06 September 2007
$0.25
5,000,000
08 May 2006
30 June 2009
$0.15
500,000
17,632,363
During the year ended 30 June 2006, no ordinary shares of Ashburton Minerals Limited were issued on the exercise of options. No further shares have been issued since that date. No amounts are unpaid on any of the shares.
CORPORATE GOVERNANCE
In recognising the need for a high standard of corporate behaviour and accountability, the Directors of Ashburton Minerals Limited support and have adhered to the principles of Corporate Governance. The Company’s corporate governance statement is contained in the Corporate Governance section of the Financial Report.
ASHBURTON MINERALS LTD
ABN 99 008 894 442
AND CONTROLLED ENTITIES
10
DIRECTORS’ REPORT
NON-AUDIT SERVICES
The Board of Directors are satisfied that the provision of non-audit services during the year is compatible with the general standard of independence for auditors imposed by the Corporations Act 2001. The directors are satisfied that the services disclosed below did not compromise the external auditor’s independence for the following reasons:
• all non-audit services are reviewed and approved by the Board prior to commencement to ensure they do not adversely affect the integrity and objectivity of the auditor; and
• the nature of the services provided do not compromise the general principles relating to auditor independence as set out in the Institute of Chartered Accountants in Australia and CPA Australia Professional Statement F1: Professional Independence.
The following fees for non-audit services were paid/payable to the external auditors during the year ended 30 June 2006:
Taxation Services
$7,562
AUDITOR’S INDEPENDENCE DECLARATION
The auditor’s independence declaration for the year ended 30 June 2006 has been received and can be found on page 11 of the directors’ report.
Signed in accordance with a resolution of the Board of Directors.
________________________
Dated this 28th day of September 2006
M
r T P Dukovcic Managing Director
ASHBURTON MINERALS LTD
ABN 99 008 894 442
AND CONTROLLED ENTITIES
11
AUDITOR’S INDEPENDENCE DECLARATION
UNDER SECTION 307C OF THE CORPORATIONS ACT 2001
TO THE DIRECTORS OF ASHBURTON MINERALS LIMITED
As lead auditor for the audit of Ashburton Minerals Ltd for the year ended 30 June 2006, I declare that to the best of my knowledge and belief, there have been:
(i) no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and
(ii) no contraventions of any applicable code of professional conduct in relation to the audit.
This declaration is in respect of Ashburton Minerals Ltd and the entities it controlled during the period.
NEIL PACE MOORE STEPHENS
PARTNER CHARTERED ACCOUNTANTS
Signed at Perth this 28th day of September 2006.
ASHBURTON MINERALS LTD
ABN 99 008 894 442
AND CONTROLLED ENTITIES
12
INCOME STATEMENT
FOR THE YEAR ENDED
30 JUNE 2006
Note
Economic Entity
Parent Entity
2006
$
2005
$
2006
$
2005
$
Revenue
3
115,737
196,049
115,737
120,682
Other income
3
2,433
-
1,073,045
-
Accounting Fees
(58,911)
(66,408)
(56,476)
(47,926)
Corporate Costs
(42,757)
(22,989)
(41,480)
(22,989)
Depreciation expense
(85,723)
(22,539)
(30,002)
(22,539)
Employee benefit expense
(467,668)
(171,905)
(399,278)
(171,905)
Exploration expenditure written-off
(382,698)
(1,416,793)
(340,265)
(1,416,793)
Finance costs
(15,307)
(3,138)
(14,382)
(2,388)
Goodwill written-off
(144,785)
-
-
-
Loan to controlled entity forgiven
-
-
-
(2,255,101)
Loss on disposal of subsidiary
(806,506)
-
-
-
Occupancy Costs
(72,397)
(59,776)
(72,397)
(59,776)
Public Relations
(25,423)
(76,299)
(25,423)
(75,744)
Other expenses
(497,101)
(434,264)
(201,551)
(386,633)
Profit/(Loss) before income tax
4
(2,481,106)
(2,078,062)
7,528
(4,341,112)
Income tax expense
5
-
-
-
-
Profit/(Loss) from continuing operations
(2,481,106)
(2,078,062)
7,528
(4,341,112)
(Profit)/Loss attributable to minority equity interest
4,343
-
-
-
Profit/(Loss) attributable to members of the Parent Entity
2
(2,476,763)
(2,078,062)
7,528
(4,341,112)
Overall Operations
Basic loss per share
(cents per share)
8
(3.17)
(2.68)
Continuing Operations
Basic loss per share
(cents per share)
8
(3.17)
(2.68)
The Company’s potential ordinary shares were not considered dilutive as the Company is in a loss position.
The accompanying notes form part of these financial statements.
ASHBURTON MINERALS LTD
ABN 99 008 894 442
AND CONTROLLED ENTITIES
BALANCE SHEET
AS AT
30 JUNE 2006
Note
Economic Entity
Parent Entity
2006
$
2005
$
2006
$
2005
$
ASSETS
CURRENT ASSETS
Cash and cash equivalents
9
965,084
1,908,062
944,411
1,873,802
Trade and other receivables
10
113,293
92,209
60,160
81,227
Other financial assets
13
3,200
3,200
3,200
3,200
TOTAL CURRENT ASSETS
1,081,577
2,003,471
1,007,771
1,958,229
NON-CURRENT ASSETS
Trade and other receivables
10
94,623
77,337
2,288,271
714,817
Investments accounted for using the equity method
11
-
1
2
3
Financial assets
13
1
1
878,501
969,410
Property, plant and equipment
15
216,582
747,144
75,567
75,444
Intangible assets
16
-
-
-
-
Other non-current assets
17
2,792,873
6,288,869
112,596
511,639
TOTAL NON-CURRENT ASSETS
3,104,079
7,113,352
3,354,937
2,271,313
TOTAL ASSETS
4,185,656
9,116,823
4,362,708
4,229,542
CURRENT LIABILITIES
Trade and other payables
18
40,865
145,019
31,652
65,511
Short-term Provisions
19
48,007
57,680
42,661
46,930
TOTAL CURRENT LIABILITIES
88,872
202,699
74,313
112,441
NON-CURRENT LIABILITIES
Trade and other payables
18
100,000
-
-
-
Long-term provisions
19
-
2,600,000
-
-
TOTAL NON-CURRENT LIABILITIES
100,000
2,600,000
-
-
TOTAL LIABILITIES
188,872
2,802,699
74,313
112,441
NET ASSETS
3,996,784
6,314,124
4,288,395
4,117,101
EQUITY
Issued capital
20
21,827,219
21,676,049
21,827,219
21,676,049
Reserves
21
420,705
408,109
420,705
408,109
Retained earnings/(Accumulated losses)
(18,246,797)
(15,770,034)
(17,959,529)
(17,967,057)
Parent interest
4,001,127
6,314,124
4,288,395
Minority equity interest
(4,343)
-
-
TOTAL EQUITY
3,996,784
6,314,124
4,288,395
4,117,101
The accompanying notes form part of these financial statements.
13
ASHBURTON MINERALS LTD
ABN 99 008 894 442
AND CONTROLLED ENTITIES
14
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED
30 JUNE 2006
Economic Entity
Note
Ordinary
Accumulated Losses
Option Reserve
Asset Realisation Reserve
Asset Revaluation Reserve
Minority Equity Interests
Total
$
$
$
$
$
$
$
Balance at 1 July 2004
2
20,559,182
(13,691,972)
32,095
376,014
-
7,275,319
Gain/(Loss) attributable to members of Parent Entity
-
(2,078,062)
-
-
-
(2,078,062)
Shares/options issued during the year
1,184,602
-
-
-
-
-
1,184,602
Transaction costs
(67,735)
-
-
-
-
-
(67,735)
Balance at 30 June 2005
21,676,049
(15,770,034)
32,095
376,014
-
6,314,124
Gain/(Loss) attributable to members of Parent Entity
-
(2,476,763)
-
-
-
(2,476,763)
Gain/(Loss) attributable to minority shareholders
-
-
-
-
(4,343)
(4,343)
Shares/options issued during the year
151,170
-
12,596
-
-
-
163,766
Transaction costs
-
-
-
-
-
-
-
Balance at 30 June 2006
21,827,219
(18,246,797)
12,596
32,095
376,014
(4,343)
3,996,784
The accompanying notes form part of these financial statements.
ASHBURTON MINERALS LTD
ABN 99 008 894 442
AND CONTROLLED ENTITIES
15
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED
30 JUNE 2006
Parent Entity
Note
Ordinary
Retained Earnings
Option Reserve
Asset Realisation Reserve
Asset Revaluation Reserve
Total
$
$
$
$
$
$
Balance at 1 July 2004
2
20,559,182
(13,625,945)
-
32,095
376,014
7,341,346
Gain/(Loss) attributable to members of Parent Entity
-
(4,341,112)
-
-
-
(4,341,112)
Shares/options issued during the year
1,184,602
-
-
-
-
1,184,602
Transaction costs
(67,735)
-
-
-
-
(67,735)
Balance at 30 June 2005
21,676,049
(17,967,057)
-
32,095
376,014
4,117,101
Gain/(Loss) attributable to members of Parent Entity
-
7,528
-
-
-
7,528
Shares/options issued during the year
151,170
-
12,596
-
-
163,766
Transaction costs
-
-
-
-
-
-
Balance at 30 June 2006
21,827,219
(17,959,529)
12,596
32,095
376,014
4,288,395
The accompanying notes form part of these financial statements.
ASHBURTON MINERALS LTD
ABN 99 008 894 442
AND CONTROLLED ENTITIES
16
CASH FLOW STATEMENT
FOR YEAR ENDED
30 JUNE 2006
Note
Economic Entity
Parent Entity
2006
2005
2006
2005
$
$
$
$
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers
-
3,881
-
-
Payments to suppliers and employees
(991,671)
(938,455)
(658,627)
(600,981)
Interest received
95,184
120,682
92,384
121,252
Finance costs
(9,448)
(18,516)
(9,448)
(18,516)
Net cash used in operating activities
24(a)
(905,935)
(832,408)
(575,691)
(498,245)
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sale of property, plant and equipment
1,000
-
1,000
-
Purchase of property, plant and equipment
(141,489)
(26,290)
(26,489)
(26,290)
Payments for exploration expenditure
(1,133,710)
(1,620,207)
(112,596)
(634,162)
Proceeds from sale of subsidiary
995,839
995,839
Proceeds from sale of tenements
364,000
364,000
Payment for subsidiary, net of cash acquired
(120,683)
-
-
Net cash used in investing activities
(35,043)
(1,646,497)
1,221,754
(660,452)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issue of shares
-
1,186,901
-
1,186,901
Payment of share issue costs
-
-
-
-
Proceeds of borrowings
200,000
200,000
Repayment of borrowings
(202,000)
-
(202,000)
-
Loan to subsidiary
-
-
(1,573,454)
(1,253,514)
Net cash provided by financing activities
(2,000)
1,186,901
(1,575,454)
(66,613)
Net (decrease)/ increase in cash held
(942,978)
(1,292,004)
(929,391)
(1,225,310)
Cash at beginning of financial year
1,908,062
3,200,066
1,873,802
3,099,112
Cash at end of financial year
9
965,084
1,908,062
944,411
1,873,802
The accompanying notes form part of these financial statements.
ASHBURTON MINERALS LTD
ABN 99 008 894 442
AND CONTROLLED ENTITIES
17
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED
30 JUNE 2006
Note 1: Statement of Significant Accounting Policies
The financial report is a general purpose financial report that has been prepared in accordance with Australian Accounting Standards, Urgent Issues Group Interpretations, other authoritative pronouncements of the Australian Accounting Standards Board and the Corporations Act 2001.
The financial report covers the Economic Entity of Ashburton Minerals Limited and controlled entities, and Ashburton Minerals Limited as an individual Parent Entity. Ashburton Minerals Limited is a listed public Company, incorporated and domiciled in Australia.
The financial report of Ashburton Minerals Limited and controlled entities, and Ashburton Minerals Limited as an individual Parent Entity comply with all Australian equivalents to International Financial Reporting Standards (AIFRS) in their entirety.
The following is a summary of the material accounting policies adopted by the Economic Entity in the preparation of the financial report. The accounting policies have been consistently applied, unless otherwise stated.
Basis of Preparation
First-time Adoption of Australian Equivalents to International Financial Reporting Standards
Ashburton Minerals Limited and controlled entities, and Ashburton Minerals Limited as an individual Parent Entity have prepared financial statements in accordance with the Australian equivalents to International Financial Reporting Standards (AIFRS) from 1 July 2005.
In accordance with the requirements of AASB 1: First-time Adoption of Australian Equivalents to International Financial Reporting Standards, adjustments to the Parent Entity and Consolidated Entity accounts resulting from the introduction of AIFRS have been applied retrospectively to 2005 comparative figures excluding cases where optional exemptions available under AASB 1 have been applied. These consolidated accounts are the first financial statements of Ashburton Minerals Limited to be prepared in accordance with Australian equivalents to AIFRS.
The accounting policies set out below have been consistently applied to all years presented. The Parent and Consolidated Entities have however elected to adopt the exemptions available under AASB 1 relating to AASB 132: Financial Instruments: Disclosure and Presentation, and AASB 139: Financial Instruments: Recognition and Measurement. Refer Note 29 for further details on Changes in Accounting Policy.
Reconciliations of the transition from previous Australian GAAP to IFRS have been included in Note 2 to this report.
Reporting Basis and Conventions
The financial report has been prepared on an accruals basis and is based on historical costs modified by the revaluation of selected non-current assets, and financial assets and financial liabilities for which the fair value basis of accounting has been applied.
Accounting Policies
(a) Principles of Consolidation
A Controlled Entity is any Entity Ashburton Minerals Limited has the power to control the financial and operating policies of so as to obtain benefits from its activities.
ASHBURTON MINERALS LTD
ABN 99 008 894 442
AND CONTROLLED ENTITIES
18
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED
30 JUNE 2006
Note 1: Statement of Significant Accounting Policies (cont’d)
(a) Principles of Consolidation (cont’d)
A list of controlled entities is contained in Note 14 to the financial statements. All controlled entities have a June financial year-end.
All inter-company balances and transactions between entities in the Economic Entity, including any unrealised profits or losses, have been eliminated on consolidation. Accounting policies of subsidiaries have been changed where necessary to ensure consistencies with those policies applied by the Parent Entity.
Where controlled entities have entered or left the Economic Entity during the year, their operating results have been included/excluded from the date control was obtained or until the date control ceased.
Minority equity interests in the equity and results of the entities that are controlled are shown as a separate item in the consolidated financial report.
(b) Income Tax
The charge for current income tax expense is based on the profit for the year adjusted for any non-assessable or disallowed items. It is calculated using tax rates that have been enacted or are substantively enacted by the balance sheet date.
Deferred tax is accounted for using the balance sheet liability method in respect of temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. No deferred income tax will be recognised from the initial recognition of an asset or liability, excluding a business combination, where there is no effect on accounting or taxable profit or loss.
Deferred tax is calculated at the tax rates that are expected to apply to the period when the asset is realised or liability is settled. Deferred tax is credited in the income statement except where it relates to items that may be credited directly to equity, in which case the deferred tax is adjusted directly against equity.
Deferred income tax assets are recognised to the extent that it is probable that future tax profits will be available against which deductible temporary differences can be utilised.
The amount of benefits brought to account or which may be realised in the future is based on the assumption that no adverse change will occur in income taxation legislation and the anticipation that the Economic Entity will derive sufficient future assessable income to enable the benefit to be realised and comply with the conditions of deductibility imposed by the law.
(c) Property, Plant and Equipment
Each class of plant and equipment is carried at cost or fair value less, where applicable, any accumulated depreciation and impairment losses.
Plant and equipment are measured on the cost basis less depreciation and impairment losses.
The carrying amount of plant and equipment is reviewed annually by directors to ensure it is not in excess of the recoverable amount from these assets. The recoverable amount is assessed on the basis of the expected net cash flows which will be received from the assets’ employment and subsequent disposal. The expected net cash flows have been discounted to their present values in determining recoverable amounts.
ASHBURTON MINERALS LTD
ABN 99 008 894 442
AND CONTROLLED ENTITIES
19
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED
30 JUNE 2006
Note 1: Statement of Significant Accounting Policies (cont’d)
(c) Plant and Equipment (cont’d)
The cost of fixed assets constructed within the Economic Entity includes the cost of materials, direct labour, borrowing costs and an appropriate proportion of fixed and variable overheads.
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the group and the cost of the item can be measured reliably. All other repairs and maintenance are charged to the income statement during the financial period in which they are incurred.
Depreciation
The depreciable amount of all fixed assets including capitalised lease assets is depreciated on a straight-line basis over their useful lives to the Economic Entity commencing from the time the asset is held ready for use. Leasehold improvements are depreciated over the shorter of either the unexpired period of the lease or the estimated useful lives of the improvements.
The depreciation rates used for each class of depreciable asset are:
Class of Fixed Asset
Depreciation Rate
Office furniture & equipment
20.0% - 40.0%
Motor vehicles
22.5%
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet date.
An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount.
Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains or losses are included in the income statement. When revalued assets are sold, amounts included in the revaluation reserve relating to that asset are transferred to retained earnings.
(d) Exploration and Development Expenditure
Exploration, evaluation and development expenditure incurred is accumulated in respect of each identifiable area of interest. These costs are only carried forward to the extent that they are expected to be recouped through the successful development of the area or where activities in the area have not yet reached a stage that permits reasonable assessment of the existence of economically recoverable reserves.
Accumulated costs in relation to an abandoned area are written off in full against profit in the year in which the decision to abandon the area is made.
When production commences, the accumulated costs for the relevant area of interest are amortised over the life of the area according to the rate of depletion of the economically recoverable reserves.
A regular review is undertaken of each area of interest to determine the appropriateness of continuing to carry forward costs in relation to that area of interest.
ASHBURTON MINERALS LTD
ABN 99 008 894 442
AND CONTROLLED ENTITIES
20
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED
30 JUNE 2006
Note 1: Statement of Significant Accounting Policies (cont’d)
(d) Exploration and Development Expenditure (cont’d)
Costs of site restoration are provided over the life of the facility from when exploration commences and are included in the costs of that stage. Site restoration costs include the dismantling and removal of mining plant, equipment and building structures, waste removal, and rehabilitation of the site in accordance with clauses of the mining permits. Such costs have been determined using estimates of future costs, current legal requirements and technology on an undiscounted basis.
Any changes in the estimates for the costs are accounted on a prospective basis. In determining the costs of site restoration, there is uncertainty regarding the nature and extent of the restoration due to community expectations and future legislation. Accordingly the costs have been determined on the basis that the restoration will be completed within one year of abandoning the site.
(e) Financial Instruments
Recognition
Financial instruments are initially measured at cost on trade date, which includes transaction costs, when the related contractual rights or obligations exist. Subsequent to initial recognition these instruments are measured as set out below.
Financial assets at fair value through profit and loss
A financial asset is classified in this category if acquired principally for the purpose of selling in the short term or if so designated by management and within the requirements of AASB 139: Recognition and Measurement of Financial Instruments. Derivatives are also categorised as held for trading unless they are designated as hedges. Realised and unrealised gains and losses arising from changes in the fair value of these assets are included in the income statement in the period which they arise.
Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market and are stated at amortised cost using the effective interest rate method.
Available-for-sale financial assets
Available-for-sale financial assets include any financial assets not included in the above categories. Available-for-sale financial assets are reflected at fair value. Unrealised gains and losses arising from changes in fair value are taken directly to equity.
Fair value
Fair value is determined based on current bid prices for all quoted investments. Valuation techniques are applied to determine the fair value for all unlisted securities, including recent arm’s length transactions, reference to similar instruments and option pricing models.
Impairment
At each reporting date, the group assess whether there is objective evidence that a financial instrument has been impaired. In the case of available-for-sale financial instruments, a prolonged decline in the value of the instrument is considered to determine whether impairment has arisen. Impairment losses are recognised in the income statement.
ASHBURTON MINERALS LTD
ABN 99 008 894 442
AND CONTROLLED ENTITIES
21
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED
30 JUNE 2006
Note 1: Statement of Significant Accounting Policies (cont’d)
(f) Impairment of Assets
At each reporting date, the group reviews the carrying values of its tangible and intangible assets to determine whether there is any indication that those assets have been impaired. If such an indication exists, the recoverable amount of the asset, being the higher of the asset’s fair value less costs to sell and value in use, is compared to the assets carrying value. Any excess of the assets carrying value over its recoverable amount is expensed to the income statement.
Impairment testing is performed annually for goodwill and intangible assets with indefinite lives.
Where it is not possible to estimate the recoverable amount of an individual asset, the group estimates the recoverable amount of the cash-generating unit to which the asset belongs.
(g) Foreign Currency Transactions and Balances
Functional and presentation currency
The functional currency of each of the group’s entities is measured using the currency of the primary economic environment in which that Entity operates. The consolidated financial statements are presented in Australian dollars which is the Parent Entity’s functional and presentation currency.
Transaction and balances
Foreign currency transactions are translated into functional currency using the exchange rates prevailing at the date of the transaction. Foreign currency monetary items are translated at the year-end exchange rate. Non-monetary items measured at historical cost continue to be carried at the exchange rate at the date of the transaction. Non-monetary items measured at fair value are reported at the exchange rate at the date when fair values were determined.
Exchange differences arising on the translation of monetary items are recognised in the income statement, except where deferred in equity as a qualifying cash flow or net investment hedge.
Exchange differences arising on the translation of non-monetary items are recognised directly in equity to the extent that the gain or loss is directly recognised in equity; otherwise the exchange difference is recognised in the income statement.
Group companies
The financial results and position of foreign operations whose functional currency is different from the group’s presentation currency are translated as follows:
- assets and liabilities are translated at year-end exchange rates prevailing at that reporting date;
- income and expenses are translated at average exchange rates for the period; and
- retained profits are translated at the exchange rates prevailing at the date of the transaction.
ASHBURTON MINERALS LTD
ABN 99 008 894 442
AND CONTROLLED ENTITIES
22
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED
30 JUNE 2006
Note 1: Statement of Significant Accounting Policies (cont’d)
(g) Foreign Currency Transactions and Balances (cont’d)
Exchange differences arising on translation of foreign operations are transferred directly to the group’s foreign currency translation reserve in the balance sheet. These differences are recognised in the income statement in the period in which the operation is disposed.
(h) Employee Benefits
Provision is made for the Company’s liability for employee benefits arising from services rendered by employees to balance date. Employee benefits that are expected to be settled within one year have been measured at the amounts expected to be paid when the liability is settled, plus related on-costs. Employee benefits payable later than one year have been measured at the present value of the estimated future cash outflows to be made for those benefits.
(i) Provisions
Provisions are recognised when the group has a legal or constructive obligation, as a result of past events, for which it is probable that an outflow of economic benefits will result and that outflow can be reliably measured.
(j) Cash and Cash Equivalents
Cash and cash equivalents includes cash on hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within short-term borrowings in current liabilities on the balance sheet.
(k) Revenue
Revenue from the sale of goods is recognised upon delivery of goods to customers.
Interest revenue is recognised on a proportional basis taking into account the interest rates applicable to the financial assets.
Dividend revenue is recognised when the right to receive a dividend has been established. Dividends received from associates are accounted for in accordance with the equity method of accounting.
Revenue from the rendering of a service is recognised upon the delivery of the service to the customers.
All revenue is stated net of the amount of goods and services tax (GST).
(l) Goods and Services Tax (GST)
Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian Tax Office. In these circumstances the GST is recognised as part of the cost of acquisition of the asset or as part of an item of the expense. Receivables and payables in the balance sheet are shown inclusive of GST.
Cash flows are presented in the cash flow statement on a gross basis, except for the GST component of investing and financing activities, which are disclosed as operating cash flows.
ASHBURTON MINERALS LTD
ABN 99 008 894 442
AND CONTROLLED ENTITIES
23
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED
30 JUNE 2006
Note 1: Statement of Significant Accounting Policies (cont’d)
(m) Comparative Figures
When required by Accounting Standards, comparative figures have been adjusted to conform to changes in presentation for the current financial year.
Critical accounting estimates and judgements
The Directors evaluate estimates and judgements incorporated into the financial report based on historical knowledge and best available current information. Estimates assume a reasonable expectation of future events and are based on current trends and economic data, obtained both externally and within the group.
ASHBURTON MINERALS LTD
ABN 99 008 894 442
AND CONTROLLED ENTITIES
24
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED
30 JUNE 2006
Note 2: First-time Adoption of Australian Equivalents to International Financial Reporting Standards
Economic Entity
Note
Previous GAAP at 1 July 2004
Adjustment
Australian equivalents to IFRS at 1 July 2004
Reconciliation of Equity at 1 July 2004
$
$
$
ASSETS
CURRENT ASSETS
Cash and cash equivalents
3,200,066
-
3,200,066
Trade and other receivables
185,861
-
185,861
Other financial assets
1,800
-
1,800
TOTAL CURRENT ASSETS
3,387,727
-
3,387,727
NON CURRENT ASSETS
Trade and other receivables
30,200
-
30,200
Investments accounted for using the equity method
1
-
1
Financial assets
1
-
1
Property, plant and equipment
943,927
-
943,927
Other non-current assets
5,672,634
-
5,672,634
TOTAL NON CURRENT ASSETS
6,646,763
-
6,646,763
TOTAL ASSETS
10,034,490
-
10,034,490
CURRENT LIABILITIES
Trade and other payables
106,104
-
106,104
Short term provisions
53,067
-
53,067
TOTAL CURRENT LIABILITIES
159,171
-
159,171
NON CURRENT LIABILITIES
Long-term provisions
2,600,000
-
2,600,000
TOTAL NON CURRENT LIABILITIES
2,600,000
-
2,600,000
TOTAL LIABILITIES
2,759,171
-
2,759,171
NET ASSETS
7,275,319
-
7,275,319
EQUITY
Issued capital
20,559,182
-
20,559,182
Reserves
408,109
-
408,109
Accumulated losses
(13,691,972)
-
(13,691,972)
TOTAL EQUITY
7,275,319
-
7,275,319
ASHBURTON MINERALS LTD
ABN 99 008 894 442
AND CONTROLLED ENTITIES
25
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED
30 JUNE 2006
Note 2: First-time Adoption of Australian Equivalents to International Financial Reporting Standards
Economic Entity
Note
Previous GAAP at
30 June 2005
Adjustments on introduction of Australian equivalents to IFRS
Australian equivalents to IFRS at
30 June 2005
Reconciliation of Equity at 30 June 2005
$
$
$
ASSETS
CURRENT ASSETS
Cash and cash equivalents
1,908,062
-
1,908,062
92,209
-
Trade and other receivables
92,209
Other financial assets
3,200
-
3,200
TOTAL CURRENT ASSETS
2,003,471
-
2,003,471
NON CURRENT ASSETS
Trade and other receivables
77,337
-
77,337
Investments accounted for using the equity method
1
-
1
Financial assets
1
-
1
Property, plant and equipment
747,144
-
747,144
6,288,869
-
6,288,869
Other non-current assets
TOTAL NON CURRENT ASSETS
7,113,352
-
7,113,352
TOTAL ASSETS
9,116,823
-
9,116,823
CURRENT LIABILITIES
145,019
-
145,019
Trade and other payables
57,680
-
57,680
Short term provisions
TOTAL CURRENT LIABILITIES
202,699
-
202,699
NON CURRENT LIABILITIES
2,600,000
-
2,600,000
Long-term provisions
TOTAL NON CURRENT LIABILITIES
2,600,000
-
2,600,000
TOTAL LIABILITIES
2,802,699
-
2,802,699
NET ASSETS
6,314,124
-
6,314,124
EQUITY
Issued capital
21,676,049
-
21,676,049
Reserves
408,109
-
408,109
Accumulated losses
(15,770,034)
-
(15,770,034)
TOTAL EQUITY
6,314,124
-
6,314,124
ASHBURTON MINERALS LTD
ABN 99 008 894 442
AND CONTROLLED ENTITIES
26
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED
30 JUNE 2006
Note 2: First-time Adoption of Australian Equivalents to International Financial Reporting Standards
Parent Entity
Note
Previous GAAP at 1 July 2004
Adjustment
Australian equivalents to IFRS at 1 July 2004
Reconciliation of Equity at 1 July 2004
$
$
$
ASSETS
CURRENT ASSETS
Cash and cash equivalents
3,099,112
-
3,099,112
Trade and other receivables
85,809
-
85,809
Other financial assets
1,800
-
1,800
TOTAL CURRENT ASSETS
3,186,721
-
3,186,721
NON CURRENT ASSETS
Trade and other receivables
1,715,404
-
1,715,404
Investments accounted for using the equity method
3
-
3
Financial assets
878,501
-
878,501
Property, plant and equipment
71,692
-
71,692
Other non-current assets
1,594,039
-
1,594,039
TOTAL NON CURRENT ASSETS
4,259,639
-
4,259,639
TOTAL ASSETS
7,446,360
-
7,446,360
CURRENT LIABILITIES
Trade and other payables
64,196
-
64,196
Short term provisions
40,818
-
40,818
TOTAL CURRENT LIABILITIES
105,014
-
105,014
TOTAL LIABILITIES
105,014
-
105,014
NET ASSETS
7,341,346
-
7,341,346
EQUITY
Issued capital
20,559,182
-
20,559,182
Reserves
408,109
-
408,109
Accumulated losses
(13,625,945)
-
(13,625,945)
TOTAL EQUITY
7,341,346
-
7,341,346
ASHBURTON MINERALS LTD
ABN 99 008 894 442
AND CONTROLLED ENTITIES
27
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED
30 JUNE 2006
Note 2: First-time Adoption of Australian Equivalents to International Financial Reporting Standards
Parent Entity
Note
Previous GAAP at
30 June 2005
Adjustments on introduction of Australian equivalents to IFRS
Australian equivalents to IFRS at
30 June 2005
Reconciliation of Equity at 30 June 2005
$
$
$
ASSETS
CURRENT ASSETS
Cash and cash equivalents
1,873,802
-
1,873,802
Trade and other receivables
81,227
-
81,227
Other financial assets
3,200
-
3,200
TOTAL CURRENT ASSETS
1,958,229
-
1,958,229
NON CURRENT ASSETS
Trade and other receivables
714,817
-
714,817
Investments accounted for using the equity method
3
-
3
Financial assets
969,410
-
969,410
Property, plant and equipment
75,444
-
75,444
Other non-current assets
511,639
-
511,639
TOTAL NON CURRENT ASSETS
2,271,313
-
2,271,313
TOTAL ASSETS
4,229,542
-
4,229,542
CURRENT LIABILITIES
Trade and other payables
38,320
-
38,320
Short term provisions
74,121
-
74,121
TOTAL CURRENT LIABILITIES
112,441
-
112,441
TOTAL LIABILITIES
112,441
-
112,441
NET ASSETS
4,117,101
-
4,117,101
EQUITY
Issued capital
21,676,049
-
21,676,049
Reserves
408,109
-
408,109
Accumulated losses
(17,967,057)
-
(17,967,057)
TOTAL EQUITY
4,117,101
-
4,117,101
ASHBURTON MINERALS LTD
ABN 99 008 894 442
AND CONTROLLED ENTITIES
28
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED
30 JUNE 2006
Note 2: First-time Adoption of Australian Equivalents to International Financial Reporting Standards
Economic Entity
Note
Previous GAAP
Effect of transition to Australian equivalents to IFRS
Australian equivalents to IFRS
Reconciliation of Loss for 2005
$
$
$
Revenues from ordinary activities
2a
196,049
-
196,049
Employee benefits expense
(171,905)
-
(171,905)
Depreciation expense
(22,539)
-
(22,539)
Finance costs
(3,138)
-
(3,138)
Other expenses from ordinary activities
(2,076,529)
-
(2,076,529)
Loss from ordinary activities before income tax expense
(2,078,062)
-
(2,078,062)
Income tax expense relating to ordinary activities
-
-
-
Loss from ordinary activities after related income tax expense
(2,078,062)
-
(2,078,062)
Loss attributable to members of the Parent Entity
(2,078,062)
-
(2,078,062)
Parent Entity
Reconciliation of Loss for 2005
Revenues from ordinary activities
2a
120,682
-
120,682
Employee benefits expense
(171,905)
-
(171,905)
Depreciation expense
(22,539)
-
(22,539)
Finance costs
(2,388)
-
(2,388)
Other expenses from ordinary activities
(4,264,962)
-
(4,264,962)
Loss from ordinary activities before income tax expense
(4,341,112)
-
(4,341,112)
Income tax expense relating to ordinary activities
-
-
-
Loss from ordinary activities after related income tax expense
(4,341,112)
-
(4,341,112)
Loss attributable to members of the Parent Entity
(4,341,112)
-
(4,341,112)
ASHBURTON MINERALS LTD
ABN 99 008 894 442
AND CONTROLLED ENTITIES
29
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED
30 JUNE 2006
Note 3: Revenue
Note
Economic Entity
Parent Entity
2006
$
2005
$
2006
$
2005
$
Operating activities
− interest received other persons
105,201
192,849
105,201
120,682
− other revenue
10,536
3,200
10,536
-
Total Revenue
115,737
196,049
115,737
120,682
Non-operating activities
− gain/(loss) on disposal of property, plant & equipment
2,433
-
(28,011)
-
− gain on disposal of investment in Wirralie Mines Pty Ltd
-
-
1,101,056
-
Other Income
2,433
-
1,073,045
-
Note 4: Profit for the year
(a)
Expenses
Impairment of goodwill
144,785
-
-
-
Write –off capitalised expenses
382,698
1,416,793
340,265
1,416,793
Occupancy costs
72,397
59,776
72,397
59,776
Accounting fees
58,911
66,408
56,


#377 von Gelfling 02.10.06 13:05:03 Beitrag Nr.: 24.341.076
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#377 von Gelfling 02.10.06 13:05:03 Beitrag Nr.: 24.341.076
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Dazugehörig (Teil II)
======================
Accounting fees
58,911
66,408
56,476
47,926
(b)
Significant revenue and expenses
The following significant revenue and expense items are relevant in explaining the financial performance:
Consideration on disposal of Wirralie Mine Pty Ltd
995,839
Carrying amount of net assets sold
(1,802,345)
Net loss on the disposal of Wirralie Mines Pty Ltd
(806,506)
-
-
-
Loan to controlled entity forgiven
-
-
-
2,255,101
ASHBURTON MINERALS LTD
ABN 99 008 894 442
AND CONTROLLED ENTITIES
30
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED
30 JUNE 2006
Note 5: Income Tax Expense
Note
Economic Entity
Parent Entity
2006
$
2005
$
2006
$
2005
$
(a)
The prima facie tax on profit/(loss) from ordinary activities before income tax is reconciled to the income tax as follows:
Prime facie tax payable on profit/(loss) from ordinary activities before income tax at 30% (2005: 30%)
(744,332)
(623,419)
2,258
(1,302,333)
Add:
Tax effect of:
− debts forgiven
-
-
-
676,530
− exploration and evaluation expenditure previously deducted for income tax and not previously recognised
62,734
-
72,000
324,720
− other non-allowable items
475,938
816
23,362
83
− revenue losses not recognised
279,536
636,125
269,635
320,606
− over provision for income tax in prior year
-
40,314
-
-
818,208
677,255
364,997
1,321,939
Less:
Tax effect of:
− exploration and evaluation expenditure deducted for income tax and not previously recognised
-
49,414
-
-
− other non-allowable items
27,527
4,422
271,479
-
− debts recovered
-
-
58,838
-
− recoupment of prior year revenue losses not previously recognised
11,471
-
-
-
− other tax benefits not previously recognised
34,878
-
36,938
19,606
73,876
53,836
367,255
19,606
Income tax
-
-
-
-
The applicable weighted average effective tax rates are as follows:
0%
0%
0%
0%
(b)
The tax benefits on the following estimated gross tax losses have not been recognised at 30 June 2006 because the Directors do not believe it is appropriate to regard the utilisation of the tax benefits as probable:
- Revenue losses $6,024,804 (2005: $5,305,597)
- Capital losses $2,098,799 (2005: $3,003,729)
- Foreign losses $ 667,365 (2005: $ 217,277)
ASHBURTON MINERALS LTD
ABN 99 008 894 442
AND CONTROLLED ENTITIES
31
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED
30 JUNE 2006
Note 6: Key Management Personnel Compensation
(a) Directors
The following persons were Directors of Ashburton Minerals Limited during the financial year:
(i) Chairman – Non-executive
Mr Rick Crabb
(ii) Executive Directors
Mr Tom Dukovcic – Managing Director
Mr Rodney Dunn
(b) Other key management personnel
There were no other key management personnel during the financial year.
(c) Key management personnel compensation
Economic Entity
Parent Entity
2006
$
2005
$
2006
$
2005
$
Short –term employee benefits
328,000
336,773
328,000
336,773
Post-employment benefits
29,520
30,310
29,520
30,310
Share-based payments
-
-
-
-
357,520
367,083
357,520
367,083
The Company has transferred the detailed remuneration disclosures to the Directors’ report in accordance with the Corporations Amendment Regulations 2006 (No. 4)
(d) Equity instrument disclosures relating to key management personnel
(i) Options provided as remuneration and shares issued on exercise of such options
Details of options provided as remuneration and shares issued on the exercise of such options, together with terms and conditions of the options, can be found in the Directors’ report on page 9
(ii) Option holdings
The numbers of options over ordinary shares in the Company held during the financial year by each Director of Ashburton Minerals Limited, including their personally related parties, are set out below
ASHBURTON MINERALS LTD
ABN 99 008 894 442
AND CONTROLLED ENTITIES
32
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED
30 JUNE 2006
Note 6: Key Management Personnel Compensation (continued)
2006
Balance at the start of the year
Granted during the year
as Compensation
Exercised during the year
Other changes during the year
Balance at the end of the year
Vested and exercisable at the end of the year
Mr Rick Crabb
1,691,446
-
-
(1,673,584)
17,862
17,862
Mr Tom Dukovcic
5,316,861
-
-
(5,225,841)
91,020
91,020
Mr Rodney Dunn
2,905,699
-
-
(2,338,335)
567,364
567,364
Total
9,914,006
-
-
(9,237,760)
676,246
676,246
No options are vested and unexercisable at the end of the year
Other changes during the year relate entirely to the expiring of unlisted options.
2005
Balance at the start of the year
Granted during the year
as Compensation
Exercised during the year
Other changes during the year
Balance at the end of the year
Vested and exercisable at the end of the year
Mr Rick Crabb
1,691,446
-
-
-
1,691,446
1,691,446
Mr Tom Dukovcic
5,316,861
-
-
-
5,316,861
5,316,861
Mr Rodney Dunn
2,905,699
-
-
-
2,905,699
2,905,699
Total
9,914,006
9,914,006
9,914,006
No options are vested and unexercisable at the end of the year
ASHBURTON MINERALS LTD
ABN 99 008 894 442
AND CONTROLLED ENTITIES
33
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED
30 JUNE 2006
Note 6: Key Management Personnel Compensation (continued)
(iii) Share holdings
The numbers of shares in the Company held during the financial year by each Director of Ashburton Minerals Limited, including their personally related parties, are set out below
2006
Balance at the start of the year
Granted during the year
as Compensation
Received during the year on the exercise of options
Other changes during the year
Balance at the end of the year
Mr Rick Crabb
132,168
-
-
-
132,168
Mr T Dukovcic
601,126
-
-
-
601,126
Mr R Dunn
3,441,678
-
-
-
3,441,678
Total
4,174,972
-
-
-
4,174,972
2005
Balance at the start of the year
Granted during the year
as Compensation
Received during the year on the exercise of options
Other changes during the year
Balance at the end of the year
Mr Rick Crabb
107,168
-
-
25,000
132,168
Mr T Dukovcic
596,126
-
-
5,000
601,126
Mr R Dunn
3,404,178
-
-
37,500
3,441,678
-
-
Total
4,107,472
-
-
67,500
4,174,972
ASHBURTON MINERALS LTD
ABN 99 008 894 442
AND CONTROLLED ENTITIES
34
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED
30 JUNE 2006
Note 7: Auditors’ Remuneration
Economic Entity
Parent Entity
2006
$
2005
$
2006
$
2005
$
Remuneration of the auditor of the Parent Entity for:
− auditing or reviewing the financial report
12,000
9,000
12,000
9,000
− taxation services
7,562
4,546
7,562
4,546
− other services
-
-
-
-
19,562
13,546
19,562
13,546
Note 8: Earnings per Share
Economic Entity
2006
$
2005
$
(a)
Reconciliation of Earnings to Profit or Loss
Loss
(2,481,106)
(2,078,062)
Earnings used to calculate basic EPS
(2,481,106)
(2,078,062)
(b)
Reconciliation of Earnings to Profit or Loss from Continuing Operations
Loss from continuing operations
(2,481,106)
(2,078,062)
Earnings used to calculate basic EPS from continuing operations
(2,481,106)
(2,078,062)
(d)
Weighted average number of ordinary shares outstanding during the year used in calculating basic EPS
No.
No.
78,238,919
77,675,718
Diluted EPS not disclosed as potential ordinary shares are not dilutive
ASHBURTON MINERALS LTD
ABN 99 008 894 442
AND CONTROLLED ENTITIES
35
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED
30 JUNE 2006
Note 9: Cash and Cash Equivalents
Note
Economic Entity
Parent Entity
2006
$
2005
$
2006
$
2005
$
Cash at bank and in hand
965,084
1,908,062
944,411
1,873,802
965,084
1,908,062
944,411
1,873,802
Reconciliation of cash
Cash at the end of the financial year as shown in the statement of cash flows is reconciled to items in the balance sheet as follows:-
Cash and cash equivalents
965,084
1,908,062
944,411
1,873,802
965,084
1,908,062
944,411
1,873,802
Note 10: Trade and Other Receivables
Current
Other receivables:
- Deposits
42,231
52,055
42,231
52,055
- Other receivables
46,571
-
-
-
- Goods and services tax
24,491
40,154
17,929
29,172
113,293
92,209
60,160
81,227
Non-Current
Amounts receivable from:
- wholly-owned entities
-
-
2,288,271
714,817
- associated companies
94,623
77,337
-
-
94,623
77,337
2,288,271
714,817
ASHBURTON MINERALS LTD
ABN 99 008 894 442
AND CONTROLLED ENTITIES
36
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED
30 JUNE 2006
Note 11: Investments Accounted for Using the Equity Method
Note
Economic Entity
Parent Entity
2006
$
2005
$
2006
$
2005
$
Investments in associated entities - at cost
12
-
2,135,021
2
2,135,023
Less: Provision for diminution in value
-
(2,135,020)
-
(2,135,020)
-
1
2
3
Note 12: Associated Companies
Interests are held in the following associated Company Optics Storage Pte Ltd which is incorporated in Singapore.
Name
Principal Activity
Ownership Interest
Carrying Amount of Investment
2006
%
2005
%
2006
$
2005
$
Optics Storage Pte Ltd
Optical storage devices
-
15.6
-
2,135,021
Less: Provision for diminution in value
-
(2,135,020)
-
1
The assets and liabilities of Optics Storage Pte Ltd, as at 30 June 2006, and the operating profit (loss) for the 12 months ended on that date, have not been disclosed as the Company was liquidated on 3 May 2005.
Note 13: Other Financial Assets
Note
Economic Entity
Parent Entity
2006
$
2005
$
2006
$
2005
$
Available-for-sale financial assets
12(a)
3,201
3,201
881,701
972,610
Less non current portion
1
1
878,501
969,410
Current portion
3,200
3,200
3,200
3,200
(a)
Available-for-sale Financial Assets Comprise:
Unlisted investments, at cost
− shares in controlled entities
-
-
878,500
969,409
− interest in other corporations
272,450
272,450
272,450
272,450
− Less provision for impairment
(269,249)
(269,249)
(269,249)
(269,249)
Total available-for-sale financial assets
3,201
3,201
881,701
972,610
ASHBURTON MINERALS LTD
ABN 99 008 894 442
AND CONTROLLED ENTITIES
37
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED
30 JUNE 2006
Note 13: Other Financial Assets (continued)
Available-for-sale financial assets comprise investments in the ordinary share capital of various entities. There are no fixed returns or fixed maturity date attached to these investments.
The fair value of unlisted available-for-sale financial assets cannot be reliably measured as variability in the range of
reasonable fair value estimates is significant. As a result, all unlisted investments are reflected at cost.
Unlisted available-for-sale financial assets exist within active markets and could be disposed of if required.
Note 14: Controlled Entities
(a)
Controlled Entities Consolidated
Country of Incorporation
Percentage Owned (%)*
2006
2005
Parent Entity:
Ashburton Minerals Limited
Australia
-
-
Ultimate Parent Entity:
Ashburton Minerals Limited
Australia
-
-
Subsidiaries of Ashburton Minerals Limited:
Ashburton Gold Mines NL
Australia
100
100
Trans Pacific Gold Pty Ltd
Australia
100
100
Trans Pacific Gold Mineracao Ltda
Brazil
100
100
Transdrill Pty Ltd
Australia
50
-
Wirralie Mines Pty Ltd
Australia
-
100
* Percentage of voting power is in proportion to ownership
(b)
Acquisition of Controlled Entities
On 22 February 2006 Trans Pacific Gold Pty Ltd acquired 50% of Transdrill Pty Ltd for a purchase consideration of $150,000.
ASHBURTON MINERALS LTD
ABN 99 008 894 442
AND CONTROLLED ENTITIES
38
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED
30 JUNE 2006
Note 14: Controlled Entities (continued)
(c)
Disposal of Controlled Entities
On 12 October 2005 the Parent Entity disposed of its 100% interest in Wirralie Mines Pty Ltd. An operating loss after tax of 806,506 was attributable to members of the Consolidated Entity from the disposal. No remaining interest in the Entity was held by any member of the Economic Entity.
Economic Entity
30 June 2006
$
Total consideration is made up as follows:
Cash consideration
995,839
Less: Cost of disposal
-
995,839
Details of the Controlled Entity disposed of are as follows:
Assets and liabilities held at disposal date:
Investment in Controlled Entity
90,909
Receivables
40,620
Mining tenements
3,920,607
Property, plant & equipment
586,114
Reversal of prior loan write-down
(196,126)
Payables
(39,779)
Future reclamation costs
(2,600,000)
Net assets/(liabilities) disposed of
1,802,345
(Loss) on disposal of former Controlled Entity
(806,506)
Total consideration
995,839
Inflow of cash from disposal of former Controlled Entity, net of cash disposed:
Cash consideration
995,839
Less: Cash balances disposed
-
Net inflow of cash
995,839
ASHBURTON MINERALS LTD
ABN 99 008 894 442
AND CONTROLLED ENTITIES
39
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED
30 JUNE 2006
Note 14: Controlled Entities (continued)
(d)
Controlled Entities with Ownership Interest of 50% or Less
Trans Pacific Gold Pty Ltd holds 50% of the ordinary shares of Transdrill Pty Ltd. Trans Pacific Gold Pty Ltd is required to make all the financial and operating policy decisions of Transdrill Pty Ltd and to ensure that those policies are consistent with the policies of the Economic Entity.
Economic Entity
30 June 2006
$
Total consideration is made up as follows:
Cash consideration
150,000
Details of the Controlled Entity acquired are as follows:
Assets and liabilities held at acquisition date:
Cash
45,187
Receivables
14,785
Property, plant & equipment
95,290
Payables
(150,047)
Net assets/(liabilities) acquired
5,215
Total goodwill on acquisition
144,785
Note 15: Property, Plant and Equipment
Economic Entity
Parent Entity
2006
$
2005
$
2006
$
2005
$
BUILDINGS
Buildings:
At Cost
-
47,900
-
-
Accumulated depreciation
-
(2,642)
-
-
Total Buildings
-
45,258
-
-
PLANT AND EQUIPMENT
Plant and equipment:
At cost
409,726
1,195,035
226,822
199,779
Accumulated depreciation
(193,144)
(493,149)
(151,255)
(124,335)
Total Plant and equipment
216,582
701,886
75,567
75,444
Total Property, Plant and Equipment
216,582
747,144
75,567
75,444
ASHBURTON MINERALS LTD
ABN 99 008 894 442
AND CONTROLLED ENTITIES
40
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED
30 JUNE 2006
Note 15: Property, Plant and Equipment (continued)
(a) Movements in Carrying Amounts
Movement in the carrying amounts for each class of plant and equipment between the beginning and the end of the current financial year.
Buildings
$
Plant and Equipment
$
Total
$
Economic Entity:
Balance at the beginning of year
45,258
701,886
747,144
Additions
-
136,293
136,293
Disposals
-
(28,538)
(28,538)
Additions through acquisition of Entity
-
78,778
78,778
Depreciation expense
-
(85,723)
(85,723)
Disposals of assets on sale of subsidiary
(45,258)
(586,114)
(631,372)
Carrying amount at the end of year
-
216,582
216,582
Parent Entity:
Balance at the beginning of year
-
75,444
75,444
Additions
-
58,663
58,663
Disposals
(28,538)
(28,538)
Depreciation expense
-
(30,002)
(30,002)
Carrying amount at the end of year
-
75,567
75,567
Note16: Intangible Assets
Note
Economic Entity
Parent Entity
2006
$
2005
$
2006
$
2005
$
Goodwill
Cost
144,758
-
-
-
Accumulated impairment losses
(144,785)
-
-
-
Net carrying value
-
-
-
-
-
-
-
-
Closing carrying value at 30 June 2006
-
ASHBURTON MINERALS LTD
ABN 99 008 894 442
AND CONTROLLED ENTITIES
41
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED
30 JUNE 2006
Note16: Intangible Assets (continued)
Goodwill
$
Economic Entity:
Year ended 30 June 2005
Balance at the beginning of year
-
Additions
-
Disposals
-
Amortisation charge
-
Impairment losses
-
Closing carrying value at 30 June 2005
-
Year ended 30 June 2006
Balance at the beginning of year
-
Additions
Internal development
-
Acquisitions through business combinations
144,785
Disposals
-
Amortisation charge
-
Impairment losses
(144,785)
Closing carrying value at 30 June 2006
-
Note 17: Other Assets
Note
Economic Entity
Parent Entity
2006
$
2005
$
2006
$
2005
$
NON-CURRENT
Exploration expenditure capitalised
− exploration and evaluation phases
2,792,873
6,288,869
112,596
511,639
The recoverability of the carrying amount of exploration assets is dependent on the successful development and commercial exploitation or sale of the respective mining permits. Amortisation of the costs carried forward for the development phase is not being charged pending the commencement of production.
ASHBURTON MINERALS LTD
ABN 99 008 894 442
AND CONTROLLED ENTITIES
42
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED
30 JUNE 2006
Note 18: Trade and Other Payables
Note
Economic Entity
Parent Entity
2006
$
2005
$
2006
$
2005
$
CURRENT
Trade payables
14,164
57,346
6,467
28,317
Sundry payables and accrued expenses
26,701
87,673
25,185
37,194
40,865
145,019
31,652
65,511
NON-CURRENT
Amounts payable to other parties
100,000
-
-
-
100,000
-
-
-
Note 19: Provisions
Reclamation Costs
$
Employee Entitlements
$
Total
$
Economic Entity:
Balance at the beginning of year
2,600,000
57,680
2,657,680
Additional provisions
-
24,599
24,599
Amounts used
-
(28,868)
(28,865)
Increase in provision on acquisition of subsidiary
-
5,346
5,346
Decrease in provision on sale of subsidiary
(2,600,000)
(10,750)
(2,610,753)
Carrying amount at the end of year
-
48,007
48,007
Parent Entity:
Balance at the beginning of year
-
46,930
46,930
Additional provisions
-
24,599
24,599
Amounts used
(28,868)
(28,868)
Carrying amount at the end of year
-
42,661
42,661
ASHBURTON MINERALS LTD
ABN 99 008 894 442
AND CONTROLLED ENTITIES
43
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED
30 JUNE 2006
Note 20: Issued Capital
Economic Entity
Parent Entity
2006
$
2005
$
2006
$
2005
$
79,640,005 (2005: 77,391,048) fully paid ordinary shares
22,977,044
22,825,874
22,977,044
22,825,874
Share Issue Costs
(1,149,825)
(1,149,825)
(1,149,825)
(1,149,825)
21,827,219
21,676,049
21,827,219
21,676,049
(a)
Ordinary Shares
No.
No.
No.
No.
At the beginning of reporting period
77,391,048
69,298,038
77,391,048
69,298,038
Shares issued during year
2,248,957
8,093,010
2,248,957
8,093,010
At reporting date
79,640,005
77,391,048
79,640,005
77,391,048
• On 12 July 2005 the Company issued 639,625 ordinary shares as full repayment of a loan at a deemed issue price of 8 cents.
• On 8 May 2006 the Company issued 1,609,332 ordinary shares at a deemed issue price of 6.2 cents and 500,000 options exercisable at 15 cents, in consideration for the option agreement over the Cuiaba Gold Project.
Note 21: Reserves
Economic Entity
Parent Entity
2006
$
2005
$
2006
$
2005
$
(a) Option Reserve
The option reserve records items recognised as costs of acquisition of exploration projects and subsidiaries.
12,596
-
12,596
-
(b) Asset Revaluation Reserve
The asset revaluation reserve records revaluations of non-current assets.
376,014
376,014
376,014
376,014
(c) Asset Realisation Reserve
The asset realisation reserve records realised gains on sale of non-current assets.
32,095
32,095
32,095
32,095
420,705
408,109
420,705
408,109
Note 22: Contingent Liabilities and Contingent Assets
The Directors are not aware of any contingent liabilities or contingent assets as at 30 June 2006.
ASHBURTON MINERALS LTD
ABN 99 008 894 442
AND CONTROLLED ENTITIES
44
$
2006
Revenue
Operating revenue 115,737 - 115,737
Total revenue 115,737 - 115,737
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED
30 JUNE 2006
Note 23: Segment Reporting
The Consolidated Entity operates in two geographical segments being Australia and Brazil and one industry segment, that of mineral exploration.
Primary Reporting – Geographical Segments
Australia
Brazil
Consolidated
$
$ Result
Segment Result (2,159,670) (321,436) (2,481,106)
Profit (loss) before income tax (2,159,670) (321,436) (2,481,106)
Income tax - - -
Profit (loss) after income tax (2,159,670) (321,436) (2,481,106)
Assets
Segment assets 3,217,075 968,581 4,185,656
Total Assets 3,217,075 968,581 4,185,656
Liabilities
Segment liabilities 184,916 3,956 188,872
Total Liabilities 184,916 3,956 188,872
Other
Depreciation and amortisation of segment
assets 81,691 4,032 85,723
Total Other 81,691 4,032 85,723
Australia Brazil Consolidated
$ $ $
2005
Revenue
Operating revenue 124,452 71,597 196,049
Total revenue 124,452 71,597 196,049
Result
Segment Result (2,090,420) 12,358 (2,078,062)
Profit (loss) before income tax (2,090,420) 12,358 (2,078,062)
Income tax - - -
Profit (loss) after income tax (2,090,420) 12,358 (2,078,062)
ASHBURTON MINERALS LTD
ABN 99 008 894 442
AND CONTROLLED ENTITIES
45
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED
30 JUNE 2006
Note 23: Segment Reporting (continued)
Australia Brazil Consolidated
2005 $ $ $
Assets
Segment assets 8,789,259 327,564 9,116,823
Total Assets 8,789,259 327,564 9,116,823
Liabilities
Segment liabilities 2,799,454 3,245 2,802,699
Total Liabilities 2,799,454 3,245 2,802,699
Other
Depreciation and amortisation of segment
assets 22,539 -
22,539
Total Other 22,539 - 22,539
Accounting Policies
Segment revenues and expenses are those directly attributable to the segments and include any joint revenue and
expenses where a reasonable basis of allocation exists. Segment assets include all assets used by a segment and
consist principally of cash, receivables, plant and equipment, exploration expenditure capitalised net of accumulated
depreciation and amortisation. While most such assets can be directly attributed to individual segments, the carrying
amount of certain assets used jointly by two or more segments is allocated to the segments on a reasonable basis.
Segment liabilities consist principally of payables, employee benefits, accrued expenses, provisions and borrowings.
Segment assets and liabilities do not include deferred income taxes.
Intersegment Transfers
Segment revenues, expenses and results include transfers between segments. The prices charged on intersegment
transactions are the same as those charged for similar goods to parties outside of the Economic Entity at an arms
length. These transfers are eliminated on consolidation.
Business Segments
The Economic Entity has the following business segment:
Exploration – conducting exploration activities in relation to mineral projects in Australia and Brazil.
Geographical Segments
The Economic Entity’s head office is located in Australia, with exploration work carried out in Australia and Brazil.
ASHBURTON MINERALS LTD
ABN 99 008 894 442
AND CONTROLLED ENTITIES
46
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED
30 JUNE 2006
Note 24: Cash Flow Information
Note Economic Entity Parent Entity
2006
$
2005
$
2006
$
2005
$
(a) Reconciliation of Cash Flow from Operations
with Profit/(Loss) after Income Tax
Loss after income tax (2,481,105) (2,078,062) 7,529 (4,341,112)
Non-cash flows in profit
Depreciation 85,723 22,539 30,002 22,539
Exploration expenditure written-off 382,689 1,416,793 340,265 1,416,793
Loan to Controlled Entity forgiven - - - 2,255,101
Impairment of goodwill 144,785 - 144,785 -
(Gain)/loss on disposal of property, plant &
equipment 28,011 - (2,433) -
(Gain)/loss on disposal of subsidiary 806,506 - (1,101,056) -
(Increase)/decrease in trade & term debtors (38,370) (47,137) 21,067 (1,000)
Increase/(decrease) in trade payables and
accruals (21,067) 8,488 (33,859) (25,876)
Other 186,893 (155,029) 18,009 175,310
Cashflow from operations (905,935) (832,408) (575,691) (498,245)
Note 25: Share-based Payments
There were no share based payments made during the financial year.
Note 26: Events After the Balance Sheet Date
No matter or circumstances have arisen since the end of the reporting date and the date of this report which
significantly affects or may significantly affect the results of the operations of the Company.
ASHBURTON MINERALS LTD
ABN 99 008 894 442
AND CONTROLLED ENTITIES
47
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED
30 JUNE 2006
Note 27: Related Party Transactions
The names of each person holding the position of Director of Ashburton Minerals Ltd since the beginning of the
financial year are:
• Mr Rick Crabb
• Mr Tom Dukovcic
• Mr Rodney Dunn
Apart from the Directors’ remuneration disclosed in the Director’s Report, no Directors have entered into a contract with
the Economic Entity since the end of the previous financial year and there are no material contracts involving Directors’
interests existing at year end.
Transactions between related parties are on normal commercial terms and conditions no more favourable than those available to
other parties unless otherwise stated.
Economic Entity Parent Entity
2006
$
2005
$
2006
$
2005
$
Transactions with related parties:
Key Management Personnel
Repayment of loan to Titanic Holdings Pty Ltd, a company in which Mr
Dunn is a director. 104,459 - 104,459 -
Repayment of loan to Westessa Holdings Pty Ltd, a company in which
Mr Crabb is a director. 51,341 - 51,341 -
Note 28: Financial Instruments
(a) Financial Risk Management
The group’s financial instruments consist mainly of deposits with banks, accounts receivable and payable, loans
to and from subsidiaries.
(i) Financial Risk
The main risks the group is exposed to through its financial instruments are interest rate risk, foreign
currency risk, liquidity risk, credit risk and interest rate risk.
Foreign currency risk
The group is exposed to fluctuations in foreign currencies arising from the sale and purchase of goods and
services in currencies other than the group’s measurement currency.
Liquidity risk
The group manages liquidity risk by monitoring forecast cash flows and ensuring that adequate unutilised
borrowing facilities are maintained.
Credit risk
The maximum exposure to credit risk, excluding the value of any collateral or other security, at balance
date to recognised financial assets, is the carrying amount, net of any provisions for impairment of those
assets, as disclosed in the balance sheet and notes to the financial statements.
The Economic Entity does not have any material credit risk exposure to any single receivable or group of
receivables under financial instruments entered into by the Economic Entity.
ASHBURTON MINERALS LTD
ABN 99 008 894 442
AND CONTROLLED ENTITIES
48
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED
30 JUNE 2006
Note 28: Financial Instruments (cont’d)
Interest rate risk exposure
Interest Rate Risk
The Economic Entity’s exposure to interest rate risk, which is the risk that a financial instruments value will fluctuate as a
result of changes in market interest rates and the effective weighted average interest rates on classes of financial assets
and financial liabilities, is as follows:
Weighted
Average
Effective
Interest Rate
Floating Interest Rate
$
Fixed Interest rate
maturing
1 to 5 Years
$
Non-interest Bearing
$
Total
$
2006 2005 2006 2005 2006 2005 2006 2005 2006 2005
Financial
Assets:
Cash 4.2% 4.0% 965,084 1,908,062 - - - - 965,084 1,908,062
Receivables 4.2% 4.0% 42,231 52,055 - - 165,685 117,491 207,916 169,546
Investments - - - - 3,201 3,202 3,201 3,202
Total Financial
Assets
1,007,315 1,960,117 - - 168,886 120,693 1,176,201 2,080,810
Financial
Liabilities:
Trade and
sundry
creditors - - - - 188,872 202,699 188,872 202,699
Total Financial
Liabilities
- - - - 188,872 202,699 188,872 202,699
(i) Net Fair Values
The net fair values of:-
- Listed investments have been valued at the quoted market price at balance date adjusted for transaction
costs expected to be incurred. For unlisted investments where there is no organised financial market the
net fair value has been based on a reasonable estimation of the underlying net assets or discounted
cashflows of the investment.
- Other assets and liabilities approximate their carrying value
No financial assets and liabilities are readily traded on organised markets in standardised form other than listed
investments, forward exchange contracts and interest rate swaps.
ASHBURTON MINERALS LTD
ABN 99 008 894 442
AND CONTROLLED ENTITIES
49
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED
30 JUNE 2006
Note 28: Financial Instruments (cont’d)
Aggregate net fair values and carrying values of financial assets and liabilities at balance date.
2006 2005
Carrying
Amount
$
Net Fair
Value
$
Carrying
Amount
$
Net Fair
Value
$
Financial Assets
Available for sale financial assets at fair value 3,201 3,201 3,202 3,202
Loans and receivables 207,916 207,916 169,546 169,546
211,117 211,117 172,748 172,748
Financial Liabilities
Other loans and amounts due 188,872 188,872 202,699 202,699
188,872 188,872 202,699 202,699
Note 29: Change in Accounting Policy
(a) The group has adopted the following accounting standards for application on or after 1 January 2005:
− AASB 132: Financial Instruments: Disclosure and Presentation; and
− AASB 139: Financial Instruments: Recognition and Measurement
The changes resulting from the adoption of AASB 132 relate primarily to increased disclosures required under the
standard and do not affect the value of amounts reported in the financial statements.
The adoption of AASB 139 has resulted in material differences in the recognition and measurement of the group’s
financial instruments. The group has elected not to adjust comparative information resulting form the introduction of
AASB 139 as permitted under the transitional provisions of this standard. As such, previous Australian accounting
standards have been applied to comparative information. A summary of the main adjustments that would have
resulted if AASB 139 was applied retrospectively are included below.
Available-for-sale Financial Assets
Under AASB 139, available-for-sale financial assets are revalued to fair value at reporting date. All adjustments
resulting from changes in fair value are taken directly to equity. If AASB 139 had been applied retrospectively, a
number of financial assets reflected at cost in the comparative year would have been adjusted to fair value at 30 June
2005. This would have resulted in an increased carrying value attributable to financial assets at 30 June 2005, and a
corresponding increase in reserves at that date.
ASHBURTON MINERALS LTD
ABN 99 008 894 442
AND CONTROLLED ENTITIES
50
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED
30 JUNE 2006
Note 29: Change in Accounting Policy (continued)
(b) The following Australian Accounting Standards have been issued or amended and are applicable to the Parent
and Economic Entity but are not yet effective. They have not been adopted in preparation of the financial
statements at reporting date.
AASB
Amendment
AASB Standard
Affected
Nature of Change in
Accounting Policy and
Impact
Application
Date of the
Standard
Application
Date for the
Group
2004-3 AASB 1: First time Adoption of
AIFRS
No change, no impact 1 January 2006 1 July 2006
AASB 101: Presentation of
Financial Statements
No change, no impact 1 January 2006 1 July 2006
AASB 124: Related Party
Disclosures
No change, no impact 1 January 2006 1 July 2006
2005-1 AASB 139: Financial
Instruments: Recognition and
Measurement
No change, no impact 1 January 2006 1 July 2006
2005-5 AASB 1: First time Adoption of
AIFRS
No change, no impact 1 January 2006 1 July 2006
AASB 139: Financial
Instruments: Recognition and
Measurement
No change, no impact 1 January 2006 1 July 2006
2005-6 AASB 3: Business
Combinations
No change, no impact 1 January 2006 1 July 2006
AASB 139: Financial
Instruments: Disclosure &
Presentation
Ashburton Minerals Limited is
in the process of evaluating the
effect of these changes of
which the impact is not
reasonably estimable at the
date of this financial report
1 January 2006 1 July 2006
2005-10 AASB 139: Financial
Instruments: Disclosure &
Presentation
No change, no impact 1 January 2006 1 July 2006
AASB 101: Presentation of
Financial Statements
No change, no impact 1 January 2006 1 July 2006
AASB 114: Segment Reporting No change, no impact 1 January 2006 1 July 2006
AASB 117: Leases No change, no impact 1 January 2006 1 July 2006
AASB 133: Earnings per share No change, no impact 1 January 2006 1 July 2006
AASB 132: Financial
Instruments: Disclosure and
Presentation
No change, no impact 1 January 2006 1 July 2006
AASB 1: First time Adoption of
AIFRS
No change, no impact 1 January 2006 1 July 2006
ASHBURTON MINERALS LTD
ABN 99 008 894 442
AND CONTROLLED ENTITIES
51
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED
30 JUNE 2006
Note 29: Change in Accounting Policy (continued)
AASB
Amendment
AASB Standard
Affected
Nature of Change in
Accounting Policy and
Impact
Application
Date of the
Standard
Application
Date for the
Group
2006-1 AASB 121: The Effects of
Changes in Foreign Exchange
Rates
No change, no impact 1 January 2006 1 July 2006
New Standard AASB 7: Financial Instruments:
Disclosure
No change, no impact 1 January 2006 1 July 2006
New Standard AASB 119: Employee Benefits:
December 2004
No change, no impact 1 January 2006 1 July 2006
All other pending Standards issued between the previous financial report and the current reporting dates have no application
to either the Parent or Economic Entity.
AASB
Amendment
AASB Standard Affected
2005-4 AASB 139: Financial Instruments: Recognition and Measurement
AASB 132: Financial Instruments: Disclosure and Presentation
2005-9 AASB 139: Financial Instruments: Recognition and Measurement
AASB 132: Financial Instruments: Disclosure and Presentation
Note 30: Company Details
The registered office of the Company is:
Level 2
35-37 Havelock Street
West Perth WA 6005
Tel: [phone]
Fax: [phone]
The principal place of business is:
Level 2
35-37 Havelock Street
West Perth WA 6005
Tel: [phone]
Fax: [phone]
ASHBURTON MINERALS LTD
ABN 99 008 894 442
AND CONTROLLED ENTITIES
52
DIRECTORS’ DECLARATION
The Directors of the Company declare that:
1. the financial statements and notes, as set out on pages 12 to 51, are in accordance with the Corporations Act
2001 and:
(a) comply with Accounting Standards and the Corporations Regulations 2001; and
(b) give a true and fair view of the financial position as at 30 June 2006 and of the performance for the year
ended on that date of the Company and Economic Entity;
2. the Chief Executive Officer and Chief Finance Officer have each declared that:
(a) the financial records of the Company for the financial year have been properly maintained in accordance with
section 286 of the Corporations Act 2001;
(b) the financial statements and notes for the financial year comply with the Accounting Standards; and
(c) the financial statements and notes for the financial year give a true and fair view.
3. in the Directors opinion there are reasonable grounds to believe that the Company will be able to pay its debts as
and when they become due and payable.
This declaration is made in accordance with a resolution of the Board of Directors.
__________________
Mr T Dukovcic
Managing Director
Dated this 28th day of September 2006
ASHBURTON MINERALS LTD
ABN 99 008 894 442
AND CONTROLLED ENTITIES
53
INDEPENDENT AUDIT REPORT TO THE MEMBERS OF ASHBURTON MINERALS LIMITED
SCOPE
The Financial Report, Remuneration Disclosures & Directors’ Responsibility
The financial report comprises the balance sheet, income statement, cash flow statements, statement of changes in
equity, accompanying notes to the financial statements, and the directors’ declaration for both Ashburton Minerals
Limited (the “Company”) and Ashburton Minerals Ltd Group (“the Consolidated Entity”) for the year ended 30 June
2006. The Consolidated Entity comprises both the Company and the entities it controlled during that year.
The Company has disclosed information about the remuneration of directors and executives (“remuneration
disclosures”), as required by Accounting Standard AASB 124: Related Party Disclosures, under the heading
”Remuneration Report” in pages 6 to 8 of the directors’ report, as permitted by the Corporations Regulations 2001.
The directors of the Company are responsible for the preparation and true and fair presentation of the financial report in
accordance with the Corporations Act 2001. This includes responsibility for the maintenance of adequate accounting
records and internal controls that are designed to prevent and detect fraud and error, and for the accounting policies and
accounting estimates inherent in the financial report. The directors are also responsible for the remuneration
disclosures contained in the directors’ report.
Audit Approach
We conducted an independent audit in order to express an opinion to the members of the Company. Our audit was
conducted in accordance with Australian Auditing Standards in order to provide reasonable assurance as to whether the
financial report is free of material misstatement and the remuneration disclosures comply with Accounting Standard
AASB 124 and the Corporations Regulations 2001. The nature of an audit is influenced by factors such as the use of
professional judgement, selective testing, the inherent limitations of internal control, and the availability of persuasive
rather than conclusive evidence. Therefore, an audit cannot guarantee that all material misstatements have been
detected.
We performed procedures to assess whether in all material respects the financial report presents fairly, in accordance
with the Corporations Act 2001, Accounting Standards, and other mandatory financial reporting requirements in
Australia, a view which is consistent with our understanding of the Company’s and the Consolidated Entity’s financial
position, and of their performance as represented by the results of their operations, changes in equity and cash flows.
We also performed procedures to assess whether the remuneration disclosures comply with Accounting Standard
AASB 124 and the Corporations Regulations 2001.
We formed our audit opinion on the basis of these procedures, which included:
• examining, on a test basis, information to provide evidence supporting the amounts and disclosures in the financial
report and remuneration disclosures, and
• assessing the appropriateness of the accounting policies and disclosures used and the reasonableness of significant
accounting estimates made by the directors.
While we considered the effectiveness of management’s internal controls over financial reporting when determining the
nature and extent of our procedures, our audit was not designed to provide assurance on internal controls.
INDEPENDENCE
In conducting our audit, we followed applicable independence requirements of Australian professional ethical
pronouncements and the Corporations Act 2001.
ASHBURTON MINERALS LTD
ABN 99 008 894 442
AND CONTROLLED ENTITIES
54
AUDIT OPINION
In our opinion:
(1) the financial report of Ashburton Minerals Limited is in accordance with:
(a) the Corporations Act 2001, including:
(i) giving a true and fair view of the Company’s and Consolidated Entity’s financial position as at 30
June 2006 and of their performance for the year ended on that date; and
(ii) complying with Accounting Standards in Australia and the Corporations Regulations 2001; and
(b) other mandatory financial reporting requirements in Australia; and
(2) the remuneration disclosures that are contained in pages 6 to 8 of the directors’ report comply with Accounting
Standard AASB 124 and the Corporations Regulations 2001.
NEIL PACE MOORE STEPHENS
PARTNER CHARTERED ACCOUNTANTS
Signed at Perth this 28th day of September 2006.
ASHBURTON MINERALS LTD
ABN 99 008 894 442
AND CONTROLLED ENTITIES
55
CORPORATE GOVERNANCE STATEMENT
FOR THE YEAR ENDED
30 JUNE 2006
This statement outlines the main corporate governance practices in place throughout the financial year, which comply
with the ASX Corporate Governance Council recommendations, unless otherwise stated.
Board of Directors
The Board’s primary role is the protection and enhancement of long-term shareholder value.
To fulfil this role, the Board is responsible for the overall corporate governance of the Consolidated Entity including
formulating its strategic direction, approving and monitoring capital, exploration and operating expenditure, setting
remuneration, appointing and removing directors and senior employees, establishing and monitoring the achievement
of management’s goals and ensuring the integrity of internal control and management information systems. It is also
responsible for approving and monitoring financial and other reporting.
The Board has delegated responsibility for operation and administration of the Company to the Executive Directors and
senior employees.
Identification of Independent Directors
The independent Director of the Company is Mr Rick Crabb. Mr Crabb was a principal of the firm Blakiston & Crabb.
Blakiston & Crabb have been one of the providers of legal services to the Company. Mr Crabb ceased as a principal of
Blakiston & Crabb on 30 June 2004 and now focuses on his public company directorships and investments.
Board Processes
Due to the small size of the board all matters that would be addressed by committees (eg. Nomination committee, audit
committee) are dealt with by the full Board of Directors.
The board has established a framework for the Consolidated Entity including a system of internal control, a business
risk management process and the establishment of appropriate ethical standards.
The full board holds regular meetings to discuss operational matters, plus strategy meetings and any extraordinary
meetings at such other times as may be necessary to address any specific significant matters that may arise.
The agenda for meetings is prepared in conjunction with the chairman, Executive Directors and Company Secretary.
Board reports are circulated in advance.
Independent Professional Advice and Access to Company Information
If a Director considers it necessary to obtain independent professional advice to properly discharge the responsibility of
his/her office as a Director then, provided the Director first obtains approval for incurring such expense from the
chairperson, the Company will pay the reasonable expenses associated with obtaining such advice.
Composition of the Board
The names and profile of each Director of the Company at the date of this report are set out in the Director’s report.
The composition of the board is determined using the following principles:
• The Board should comprise at least three directors. This number may be increased where it is felt that
additional expertise is required in specific areas, or when an outstanding candidate is identified,
ASHBURTON MINERALS LTD
ABN 99 008 894 442
AND CONTROLLED ENTITIES
56
CORPORATE GOVERNANCE STATEMENT
FOR THE YEAR ENDED
30 JUNE 2006
Composition of the Board (cont’d)
• The Board should not comprise a majority of executive directors. Due to the small size of the board it is not
considered necessary that the majority of the board should be independent directors,
• The Board should comprise directors with a broad range of expertise, with a majority of directors having
extensive knowledge of the Company’s industry,
• Directors appointed by the Board are subject to election by shareholders at the following annual general
meeting and thereafter directors (excluding the Managing Director) are subject to re-election at least every
two years.
The composition of the Board is reviewed on an annual basis to ensure that the Board has the appropriate mix of
expertise and experience. When a vacancy exists, through whatever cause, or where it is considered that the Board
would benefit from the services of a new director with particular skills, a panel of candidates is selected with the
appropriate expertise and experience. External advisers may be used to assist in such a process. The Board then
appoints the most suitable candidate who must stand for election at the next general meeting of shareholders.
Director Evaluation
During the Reporting Period an evaluation of the Board and its members was facilitated by the Chairman and carried
out by the full Board in the absence of the relevant Board member.
Remuneration Report
Remuneration policies
The Board is responsible for determining remuneration policies and packages applicable to the Board members and
senior employees of the Company. Remuneration levels are competitively set to attract and retain appropriately
qualified and experienced directors and senior employees. The board remuneration policy is to ensure the
remuneration package properly reflects the person’s duties and responsibilities and level of performance and that
remuneration is competitive in attracting, retaining and motivating people of the highest quality. Where necessary,
independent advice on the appropriateness of remuneration packages is obtained.
Remuneration packages consist of fixed remuneration packages with no equity-based remuneration component. There
is no separate profit-share plan.
Options may be issued to directors as an incentive and in recognition of the fact that the fixed cash component of
remuneration is comparatively modest. The ability to exercise the options is conditional on the holder remaining in the
Company’s employment. There are no other non-cash benefits available to directors or employees.
The Company does not have any schemes for retirement benefits, other than statutory superannuation, for directors.
Directors and Senior Executives Remuneration
Details of the nature and amount of each major element of the remuneration of each director of the Company and the
named officers of the Company receiving the highest remuneration are set out in Note 6.
Options granted to Directors and Officers
During or since the end of the financial year, no options were granted by the Company to directors and officers.
ASHBURTON MINERALS LTD
ABN 99 008 894 442
AND CONTROLLED ENTITIES
57
CORPORATE GOVERNANCE STATEMENT
FOR THE YEAR ENDED
30 JUNE 2006
Unissued shares under option
As at the date of this report, there were 17,632,363 unissued ordinary shares under option. Further information in
respect of these options is set out in the Directors’ Report.
No option holder has any right under the options to participate in any other share issue of the Company or of any other
Entity.
Share Issued upon Exercise of Options
No options were exercised during or since the end of the financial year.
Audit Committee Meetings
During the Reporting Period, the full Board considered those matters that would otherwise be considered by an audit
committee on the following dates:
- 24 September 2005
- 16 March 2006
Risk Management
Oversight of the Risk Management System
The Board overseas the establishment, implementation, and annual review of the Company’s Risk Management
System. Management has established and implemented the Risk Management System for assessing, monitoring and
managing operational, financial reporting and compliance risks for the Consolidated Entity. Financial reporting risk
management and associated compliance and controls have been assessed and found to be operating adequately. The
operational and other compliance risk management have also been assessed and found to be operating efficiently and
effectively. All risk assessments covered the whole financial year and the period up to the signing of the financial report
for all material operations in the Consolidated Entity.
Risk Profile
The Executive Directors report to the Board regularly on the status of risks, ensuring that they are identified, assessed
and appropriately managed.
Major risks arise from such matters as political risk, exploration risk, security to tenure, environment, government policy
changes, commodity prices, occupational health and safety and financial reporting.
Procedures have been established to ensure:
• The political situation in Brazil is closely monitored,
• Exploration expenditure is incurred in accordance with an approved budget,
• Joint ventures and project acquisitions are properly authorised and executed,
• The quality and integrity of personnel,
• Financial reporting accuracy and compliance with the financial reporting regulatory framework,
• Environmental regulation compliance.
ASHBURTON MINERALS LTD
ABN 99 008 894 442
AND CONTROLLED ENTITIES
58
CORPORATE GOVERNANCE STATEMENT
FOR THE YEAR ENDED
30 JUNE 2006
Quality and Integrity of Personnel
Formal appraisals are conducted at least annually for all employees. Training and development and appropriate
remuneration and incentives with regular performance reviews create an environment of co-operation and constructive
dialogue with employees.
Financial Reporting
The Executive Directors have declared in writing to the Board that the Company’s financial reports are founded on a
sound system of risk management and internal compliance and control which implements the policies adopted by the
Board.
Environmental Regulation
The Consolidated Entity holds exploration interests in Brazil and Australia. The Consolidated Entity’s operations are
subject to environmental regulations in Brazil and Australia in relation to its exploration activities.
The Consolidated Entity is committed to achieving a high standard of environmental performance. The Executive
Directors are responsible for the regular monitoring of environmental exposures and compliance with environmental
regulations. As part of this process they are responsible for:
• Implementing environmental management plans in operating areas which may have a significant
environmental impact,
• Identifying where remedial actions are required and implementing action plans.
The Board is advised of any significant environmental issues as they occur. Based upon the work completed, the board
is not aware of any significant breaches of environmental requirements during the period covered by this report.
Ethical Standards
The Board acknowledges the need for continued maintenance of the highest standards of corporate governance
practice and ethical conduct by all Directors and employees of the Consolidated Entity. A fundamental theme of the
Consolidated Entity’s code of ethics is that all business affairs are conducted legally, ethically and with the strict of the
highest standards of integrity and propriety. The Directors and management have the responsibility to carry out their
functions with a view to maximising financial performance of the Consolidated Entity.
All Directors and employees are expected to act with the utmost integrity and objectivity, striving at all times to enhance
the reputation and performance of the Consolidated Entity.
Conflict of Interest
Directors must keep the board advised, on an ongoing basis, of any interest that could potentially conflict with those of
the Company. Where the Board believes that a significant conflict exists for a Director on a Board matter, the Director
concerned does not receive the relevant Board papers and is not present at the meeting whist the item is considered.
Details of director related entity transactions with the Company and the Consolidated Entity are set out in note 27.
ASHBURTON MINERALS LTD
ABN 99 008 894 442
AND CONTROLLED ENTITIES
59
CORPORATE GOVERNANCE STATEMENT
FOR THE YEAR ENDED
30 JUNE 2006
Trading in General Company Securities by Directors and Employees
The Policy on trading in Company securities by directors and employees is that directors and employees are prohibited
from dealing in company shares or exercising options whilst in possession of price sensitive information not yet
released to the market.
Communication with Shareholders
The Board provides shareholders with information using a comprehensive continuous disclosure policy which includes
identifying matters that may have a material effect on the price of the Company’s securities, notifying them to ASX,
posting them on the Company’s website and issuing media releases.
In summary, the continuous disclosure policy operates as follows:
• The Executive Directors and the Company Secretary are responsible for interpreting the Company’s policy
and where necessary informing the Board. The Company Secretary is responsible for all communications
with the ASX,
• The full annual financial report is distributed to all shareholders,
• The half-yearly report contains summarised financial information and a review of the operations of the
Consolidated Entity during the period. The half-year reviewed financial report is lodged with the Australian
Securities and Investments Commission and the ASX, and sent to any shareholder who requests it,
• Quarterly reports contain summarised financial information and a review of the operations of the
Consolidated Entity during the period. The quarterly reports are lodged with the ASX, and sent to any
shareholder who requests it,
• Proposed major changes in the Consolidated Entity which may impact on share ownership rights are
submitted to a vote of shareholders,
• All announcements made to the market are placed on the Company’s website after they are released to the
ASX,
• The full texts of notices of meetings and associated explanatory material are placed on the Company’s
website,
• The external auditor is requested to attend the annual general meeting to answer any questions concerning
the audit and the content of the auditor’s report.
All the above information is made available on the Company’s website within three days of public release and is
emailed to all shareholders who lodge their email contact details with the Company. Information on lodging email
addresses with the Company are available on the Company’s website.
The Board encourages full participation of shareholders at the Annual General Meeting, to ensure a high level of
accountability and identification with the Consolidated Entity’s strategy and goals. Important issues are presented to
the shareholders as single resolutions.
A copy of the Constitution is available to any shareholder who requests it.
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