Ann: Half Yearly Report and Accounts, page-3

The finance expense of $US 3.3mil comes from the creation of a long term liability 'Fair value of derivative instruments' of a similar amount. From my reading of this, it is calculated on the difference of the share price at 30June(20c) to the Conversion price of the Convertible Note of 12.5c. We have given away this benefit so the liability must be recognised under accounting standards.
In other words, it's only a book entry and most would say it is neither a financial expense nor a liability and will evaporate when the share price retreats to 12.5c.
Having said that, the rest of the accounts are not healthy and you would expect they will have to do a capital raising before the end of the year.
The Yemen govt having doubts over our capacity to operate there is worrying and I hope we see a positive resolution to this swiftly.