annual report

CHAIRMAN'S REVIEW

Dear Shareholder

The vast majority of the past year has been dominated by the sub prime crisis which has negatively impacted
on all global financial markets flowing through to companies, both large and small worldwide. During the second
half of the 2007/08 financial year, the fallout from sub prime continued to impact very heavily on all small cap
junior explorers in Australia. Against a back drop of negative sentiments within all financial markets, project and
working capital finance has slowed to a trickle amidst falling share prices across the board.
Despite the ongoing difficulties for Oropa to raise finance for its exploration activities, Oropa’s board was very
excited about the results achieved at the Company’s 75% owned Pungkut gold project throughout the past
year, culminating with a 1 million ounce JORC compliant inferred resource being announced in June this year.
Oropa exercised its option to acquire Pungkut in January 2003 and to date has spent some A$9,000,000 on
exploration to achieve this 1 million ounce milestone at discovery costs of approximately A$9.00 per ounce.
Immediately after completing the revised resource estimate in May, the Company commissioned SRK
Consulting (Australasia) Pty Ltd to undertake a Scoping Study of the two inferred gold resources at Pungkut
(Sihayo 1 North and Sambung). A considerable amount of additional metallurgical test work was undertaken in
advance of the Scoping Study to enable representative gold recoveries to be utilised for the study, which is
expected to be completed by mid-September.
The Company continues to raise modest amounts of working capital during these extremely difficult times to
ensure that resource delineation drilling at Sihayo 1 North continues, with the objective being to further increase
the gold resources there. Field activities, aside from resource drilling at Sihayo 1 North, focused on the nearby
epithermal prospect Hutabargot Julu, where near surface bonanza gold grades were encountered in drilling
along the newly discovered outcropping Ali vein in the centre of the prospect area. In early August, the
Company announced the discovery of a large multi element geochemical anomaly coincident with the perceived
intersection of the Ali and Sarahan veins to the south of the Simalagi River. Surface sampling returned grades
of up to 12.8 g/t Au and 22 g/t Ag in soils within the anomaly, which prompted the Company to mobilise a
second rig to Hutabargot Julu to drill test the geochemical target. The area is located approximately 600m
south-east of drill hole HUTDD018 that encountered the bonanza grade gold zone, announced 15th May 2008.
Several additional holes are planned in this area.
Although Oropa like many other companies has been impinged by financial constraints, the Company has
systematically progressed Pungkut throughout the year and the directors anticipate evaluating the results of the
Scoping Study with the objective being to advance Pungkut to mining feasibility in the first half of 2009.
The Company ventured into Malawi in late 2007 and initial activities over the past 9 months, although limited,
have identified a number of uranium anomalies within the Mzimba Northwest and Chitunde Exclusive
Prospecting Licences (“EPLs”), two of three 100% Oropa owned EPLs in the country. The third, Chizani is
located immediately to the north of Globe Metal’s and CC Mining SA’s multi commodity niobium-uraniumtantalum-
zircon deposit. This EPL is considered to offer exploration potential for hydrothermal uranium and is
currently being assessed as part of a remote sensing study. Ongoing exploration is planned for the remainder
of the year on all of the Company’s tenements in Malawi, taking into account the high level of exploration
success being achieved by the handful of companies presently operating in that country, most notably Paladin
Energy Ltd’s Kayelekera Uranium project, which is scheduled to commence production at the end of this year.
The stage is now set for Oropa to make the big step from being a junior explorer to an emerging gold producer
and the board is looking towards an exciting 12 months ahead.
Yours sincerely,
Brian J Hurley
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REVIEW OF OPERATIONS
CORPORATE
On 17 October 2007, Oropa Limited (“Oropa or the Company”) announced that it had raised interim working
capital of $463,525.00 before costs via a placement of 10,300,555 ordinary shares at 4.5 cents per share to
overseas and sophisticated investors. The funds were applied towards ongoing exploration and drilling
operations at the Sihayo 1 North and Hutabargot Julu prospects at its 75% owned Pungkut gold project in
Indonesia (“Pungkut”), plus the establishment of the Company’s field operations in Malawi, including initial
regional geochemical sampling programs at the Mzimba Northwest and Chitunde uranium prospects.
At the Company’s Annual General Meeting convened on 28 November 2007, all resolutions as set out in the
Notice of Meeting were carried with the required majorities.
On 28 November 2007, the Company’s directors announced that a meeting of shareholders was to be
convened at a date to be fixed to consider and if thought fit, to pass a resolution for the Company to issue up to
13,280,376 new options, each at an issue price of $0.002 per new option and expiring on 31 January 2011
(“2011 Options”) to those persons recorded as holders of unexercised options that expired on 31 December
2007 (“2007 Option Holders”). More recently on 14 April this year, a Notice of Shareholders Meeting was
lodged with the ASX and dispatched to shareholders advising them that this general meeting was to be
convened on 12 May 2008 to consider a number of resolutions, including the issuance of the 2011 Options. All
resolutions were passed, including the ratification of two previous placements of 10,000,000 shares at 5 cents
per share and 13,347,483 at 4 cents per share respectively to raise $1.034M before costs
In mid-March, the Company announced that it had placed a total of 13,347,483 ordinary shares at an issue
price of 4 cents per share to sophisticated and overseas investors to raise $533,899.00 before costs for working
capital purposes and to continue funding its 75% owned Pungkut project.
During May through July this year, the Company raised $720,000 before costs via placements of 13,090,907
ordinary shares at an issue price of 5.5 cents per share to overseas institutions and sophisticated investors.
These funds are being applied towards ongoing exploration programs at Pungkut and the re-commencement of
sampling operations in Malawi.
Mr. Misha Collins, CFA was appointed as a non executive director of Oropa on 8 July 2008. Mr Collins is a
metallurgist, with extensive experience having spent the past 10 years as a financial analyst with BT Fund
Management. He currently owns an investment and trading business.
A Prospectus covering the 2011 Option issue was lodged with the ASX on 8 August 2008 and dispatched to the
2007 Option Holders. The offer closed on 22 August 2008 and the Company received applications for
8,510,285 options. On 27 August 2008 the Company issued these options and capital of $17,020.57 before
costs was raised. The directors reserve the right to allot the shortfall to the issue subject to the terms and
conditions by shareholders at the 12 May 2008 General Meeting.
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REVIEW OF OPERATIONS
INTERNATIONAL PROJECTS
INDONESIA -Pungkut Gold Project, Sumatra; (75%)
Location Map:
Pungkut is a 7th Generation Contract of Work (“CoW”) located in North Sumatra, Indonesia. It lies 75km to the
south of Oz Minerals Limited’s high-suphidation Martabe gold deposit(s), which collectively contain a resource
base of approximately 6Moz Au and 60Moz Ag (Feasibility Study). Further to the north at Dairi, Herald
Resources Ltd is developing a high grade zinc-lead mine (total resource base of 17.98 Mt at 12.6% zinc and
7.3% lead).
Pungkut is owned by PT Sorikmas Mining (“Sorikmas”), which is 75% owned by Oropa and 25% by PT Antam
Tbk. (“Antam”). Oropa manages the project and is responsible for contributing 100% of the exploration and
development funding by way of loans to Sorikmas until the commencement of production. Under the terms of a
Loan Agreement, Antam is to repay its share of those loans to Oropa or other lenders to Sorikmas from 80% of
its share of available cash flow from production, until its 25% share of the loans are repaid in full.
GEOLOGICAL SETTING
Pungkut straddles part of the 1,900km long Sumatran Fault Zone, resulting from the oblique subduction of the
Australian-Indian plate beneath the Sunda-Continental Plate. The CoW area also covers part of the Sumatran
Volcanic Arc, with the dominant lithologies being Permian volcanics and sediments, intruded and underlain by
Jurassic and Cretaceous plutons of dioritic through to granitic composition, juxtaposed and overlain by Tertiary
to Recent volcanics and sediments. The tectonic setting provides both the deep seated mantle-tapping
structures and hydrothermal cells to source and transport metals, and favourable depositional structural and
lithological settings to host major gold, copper and zinc deposits. Similar tectonic settings in the Philippines
(Philippine’s Fault), and Chile (Atacama Fault) host major gold and copper deposits.
EXPLORATION ACTIVITIES
A major milestone was achieved at Pungkut in May when a revised resource estimation including results from
recent drilling increased the Sihayo 1 North Inferred Resource by 49% to 12.1 million tonnes grading 2.4g/t
gold for 910,000 ounces of contained gold. Combined with the resource estimation for nearby Sambung
completed the previous year, this now increases the Combined Inferred Resources to greater than 1 million
ounces of gold. The results of the resource estimations prompted the Company to commission a Scoping
Study into the economics of mining and treatment of the combined resources; which is currently in progress.
Oropa remains confident that current exploration and drilling activities proximal to the Sihayo 1 North Inferred
Resource will further increase it.
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REVIEW OF OPERATIONS
Detailed exploration of the large epithermal vein system at Hutabargot Julu commenced early this year.
Hutabargot Julu is situated on the same trend as Sihayo and Sambung, and has the potential to host a large,
high grade gold deposit. Initial exploration and drilling has confirmed that bonanza grade gold mineralisation
exists in this prospect area. Systematic follow up work will continue for the remainder of this year.
NORTH BLOCK
Summary of Activities:
Sihayo 1 North:
�� Completion of a new resource estimate for Sihayo 1 North
�� 21 diamond drill holes (1,385m) targeting jasperoid on the flanks of the Inferred Resource
�� 23 test pits were dug
�� 38 soil samples collected
Hutabargot Julu:
�� 19 diamond drill holes (2109m) completed
�� 450 rock-chip samples collected
�� 223 soil samples collected
�� Mapping and geological interpretation
Sihayo 1 North
Sihayo Revised Resource Estimation
Enormous encouragement is provided by the new Sihayo 1 North JORC Code compliant Inferred Resource
estimate as prepared by Mining Assets Pty Ltd, and released in May. The Sihayo 1 North Inferred Resource
now stands at 12.1 million tonnes grading 2.4g/t gold for 910,000 ounces of contained gold – representing
a 49% increase in gold resources over the previous estimate. Combined with the nearby Sambung Inferred
Resource the total Inferred Resource now stands at 1.01 million ounces of gold. This resource base is a
significant milestone towards bringing Pungkut to mining status.
Table 1: Oropa Sihayo 1 North and Sambung Resources
Project Million tonnes Grade
g/t gold
Contained Gold
Million ounces
Sihayo 1 North 12.1 2.4 0.91
(+1.0 g/t cut-off grade)
Sambung 1.1 2.6 0.10
(+1.5 g/t cut-off grade)
Combined Inferred Resource 13.2 2.4 1.01
Independent consultants SRK Consulting (Australasia) Pty Ltd have been commissioned to conduct a Scoping
Study to determine the approximate costs and economics of mining and treatment based on the existing
resources, and the scaling effect that any additional resources might have on the project. The Scoping Study
commenced in July, with results anticipated in mid-September 2008.
Integral to any upgrading of resource classifications according to the JORC Code is to ensure the integrity of
the data used in the resource estimation process. During the past couple of years, Sorikmas has continued to
review and upgrade its entire sample database and assay quality control procedures. Steps have been taken
to rectify deficiencies identified in previous sampling and quality control protocols in advance of an anticipated
drill-out of the Sihayo 1 North and Sambung Inferred Resources to increase the confidence level of the
resource classification as required for a bankable feasibility study. Formal documentation of procedures is
underway.
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REVIEW OF OPERATIONS
Exploration activities during the past year focused on drilling on the western margin of the Sihayo 1 North
Inferred Resource in the Western Extension area. Drilling tested outcropping jasperoid that had previously not
been followed up on due to earlier interpretations that the jasperoids were limited in lateral extent. However,
drilling has been highly successful and considerable thicknesses of well mineralised jasperoids were
encountered, and included in the latest Sihayo 1 North inferred resource calculations. Best intersections
include:
SHDD090: 10m @ 2.3g/t Au from 2m
SHDD093: 17m @ 4.4g/t Au from 4m
SHDD094: 8m @ 4.4g/t Au from 25m
SHDD095: 8m @ 2.17g/t Au from surface
SHDD096: 17.6m @ 1.82g/t Au from surface
SHDD097: 6m @ 3.66g/t Au from 1m
SHDD097: 13m @ 1.53g/t Au from 15m
SHDD098: 6m @ 2.15g/t Au from surface
SHDD103: 22m @ 3.96g/t Au from surface
SHDD103: 6m @ 1.45g/t Au from 25m
SHDD104: 22.8m @ 4.84g/t Au from 41m
Following the successful drilling program at the Western Extension, a geological re-interpretation indicated
further untested prospective stratigraphy at the North Western-Extension. Drilling returned to Sihayo 1 North in
May 2008 to test the mineral potential here. Moderate gold in regolith and in-situ jasperoids were encountered
in this drilling.
More encouragingly, test pits on the eastern side of the resource in the Old Camp Area encountered gold in
jasperoid regolith in an area previously interpreted to be closed off by a fence of drill holes. A geological reinterpretation
placing a major fault beyond the fence of drill holes opened the possibility of further mineralisation
under a concealing blanket of Tertiary sediment and regolith. Subsequent broad spaced drilling (assay results
pending) has identified jasperoid over 200m of strike length in both thick regolith and primary sedimentary
layers. Significant potential exists to increase the Sihayo 1 North resource in the Old Camp Area.
Figure 1: Sihayo 1 North Current Drill Hole Program
.
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REVIEW OF OPERATIONS
Table 2: Sihayo 1 North Significant Drill Intersections
Hutabargot Julu
Hutabargot Julu is a major exploration target for Sorikmas; with programs over the past nine months testing
intermediate-sulphidation epithermal quartz and massive silica alteration in veins interpreted to extend over a
strike length of up to 3km. Vein textures indicate upper level exposure of the vein, with the potential to host
substantial and high grade mineralisation at depth.
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REVIEW OF OPERATIONS
Epithermal systems often host rich gold mineralisation, as is evidenced elsewhere in Indonesia in lowsulphidation
deposits at Newcrest’s PT Nusa Halmahera Minerals’ Gosowong and Kencana mines on
Halmachera Island, Antam’s Pongkor mine in West Java, ARC Exploration’s Cibaliung deposit south of Pongkor
and Oz Minerals Limited’s world-class 6 Moz gold high-sulphidation Martabe gold and silver deposit, located
75km north of Pungkut.
To date, four main outcropping quartz vein zones have been identified at Hutabargot Julu; the Sunday vein sets
in the east, the Sarahan and Ali veins in the central part of the prospect, and the Sihorbo vein to the west; other
minor veins are also present. Veins/vein zones consist of quartz breccias, massive silicification, moderately
banded quartz veins, quartz stringers, and often clay with iron-oxides and minor manganese oxides on the
hanging wall surfaces. Chalcedonic quartz is common, and minor quartz after bladed calcite is present;
indicating the upper level of the hydrothermal system. Strong vertical stratification is evident with the best
developed veining exposed at lower elevations along the Simalagi River. Veins are 2 to 30m wide, dip
approximately 60º to the west, and except for the Ali vein, strike north-south. The north-south orientation is
interpreted to be related to dilation in the north-west trending Sumatran Fault zone, and dilatational structures
are an ideal host for epithermal mineralisation.
Previous exploration at Hutabargot Julu commenced pre-1914 when Dutch explorers identified the area as
prospective and exploration adits were driven predominantly into the Sunday and Sarahan veins north of the
Simalagi River. A CSR/Billiton joint venture conducted some exploration in the mid-late 1980s. Those
exploration activities comprised mapping, trenching, and soil sampling, with emphasis on the northern area of
the Sunday vein based on the best results returned from their soil sampling; 3 holes were reportedly drilled.
Sorikmas commenced exploration in the area on the basis of the historical Dutch reports, but focused on areas
with the widest quartz vein exposures and where the best assay results were returned from new rock-chip
sampling. Drilling commenced along the Sarahan vein, north of the Simalagi River coincident with anomalous
surface outcrop. The Sunday vein was also subjected to scout drilling. The Sihorbo vein is considered to have
good mineral potential, but is remote and the more accessible targets are being drill tested first. The Ali vein
was discovered during the Sorikmas regional mapping and surface sampling programs, striking obliquely to the
Sarahan vein with consistent high grade outcrop samples. More recent mapping and sampling along the
Sarahan vein to the south of the Simalagi River has discovered massive alteration associated with gold
anomalism.
Figure 2: Hutabargot Julu Rock Chip Sample Locations
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REVIEW OF OPERATIONS
Sarahan vein
The Sarahan vein was the target of the initial drilling due to significant results obtained in channel-chip samples
and substantial widths of vein exposure at surface and in extensive historic Dutch adits. The 9 drill holes along
Sarahan all intersected significant mineralisation with an average intersection of 2m @ 2.12 g/t Au. This
mineralisation, interpretated as upper level, may indicate higher grade and more substantial mineralisation at
depth; as occurs in many epithermal deposits. Deeper drilling in HUTDD013 intersected 70m of massive quartz
vein breccia from 136.5m. Further deep drilling is planned for this area.
Sunday vein
The Sunday vein zone, located in the eastern portion of the prospect area consists of multiple parallel veins
which can be accessed by historic Dutch adits. Channel-chip samples returned up to 3.83 g/t Au, and a limited
3 hole scout drilling program was conducted. Moderate gold values were returned from this drilling. West of the
Sunday vein encouraging outcrop rock-chip assay of up to 4.11 g/t Au, and 2.57 g/t Au from a base metal vein
at Tambang Panas warrant follow up exploration.
Ali vein
The Ali vein discovered during reconnaissance mapping, strikes obliquely to the Sarahan vein. Rock-chip
samples collected from within a 320m strike are consistently well-mineralised with assays of up to 136 g/t Au &
1,250 g/t Ag. Follow up diamond drilling encountered patchy mineralisation in the first 5 drill holes; however bonanza
grade mineralisation in the southernmost hole HUTDD018 of 5m @ 35.67 g/t Au & 198 g/t Ag from 47m has
confirmed the potential for high grade mineralisation in these epithermal veins. Follow up diamond drilling to the
south-east of HUTDD018 is planned to commence in the December quarter.
Sarahan vein south
Recent reconnaissance mapping tracking the projected position of the Sarahan vein to the south of the
Simalagi River has revealed massive silica alteration, and gold in channel chip samples of up to 14.2 g/t Au. A
soil grid covering the Sarahan and Ali veins has delineated a significant coincident gold, silver, copper, lead,
zinc, antinomy, and molybdenum anomaly in the Sarahan vein South area. The Ali vein is interpreted to
intersect the Sarahan vein in this general area, prioritising it as an important conceptual drill target. Drilling to
test this large soil anomaly at depth depth is planned. Assay results from 4 recent drill holes that intersected
substantial quartz vein zones are awaited.
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REVIEW OF OPERATIONS
Table 3: Hutabargot Julu Significant Drill Intersections
SOUTH BLOCK
There were no significant exploration activities conducted in the South Block during the year owing to the
resource development programs at Sihayo 1 North and concerted exploration programs at the nearby
Hutabargot Julu prospect.
PUNGKUT FURTHER EXPLORATION TARGETS
While current exploration is concentrated on developing the combined Sihayo-Sambung Inferred Resources to
mining development stage and to test the extensive intermediate-sulphidation quartz veins at Hutabargot Julu,
many highly potential untested gold and copper targets exist at Pungkut. The current objective is to bring
Pungkut to a mining stage as soon as possible to provide funding to explore these other targets. These
additional prospect areas had been previously identified during Aberfoyle/PT Sorikmas Mining reconnaissance
exploration in the late nineties, some of which were subsequently confirmed by Richard Sillitoe, an
internationally recognised and widely published expert on copper and gold deposits, during a site visit to
Pungkut in July 2007. Although these targets remain untested by modern exploration methods, all are
considered to have potential for substantial gold mineralisation.
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REVIEW OF OPERATIONS
These high potential exploration targets include:
Porphyry Copper-Gold
• Sihayo 2
• Singalancar
• Ruro Balancing
• Namilas
Gold Epithermal Quartz Vein
• Nalan Julu
• Nalan Jae
• Air Rotap
• Taratung
Gold Greisen
• Tambang Tinggi
Gold Jasperoid
• Sihayo 3 & 4
Figure 3: Regional Exploration Targets
PROJECT EVALUATION
Throughout the year Oropa has looked at opportunities to acquire a quality coal project in Indonesia and
several have been evaluated. However, the recent surge in coal prices has led to a chaotic scramble for coal
projects throughout Indonesia and sourcing quality projects has become increasingly difficult in this highly
competitive market. Oropa has maintained a very high standard with its legal and technical due diligence
processes to ensure that every project is thoroughly scrutinised, prior to the commencement of any commercial
negotiations. Under favourable circumstances, Oropa would consider expanding its interests in Indonesia by
acquiring an advanced coal project that could rapidly be developed to production, principally to fund the
ongoing development of Pungkut from positive cash flows.
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REVIEW OF OPERATIONS
MALAWI
After a considerable amount of research including geological and technical appraisals by two international
uranium geologists, Oropa’s wholly owned subsidiary, Oropa Exploration Pty Ltd (“OEPL”) applied for and was
granted two Exclusive Prospecting Licences (“EPLs”) for uranium exploration in June 2007 over the Mzimba
Northwest and Chitunde Project areas covering a total of 2,365km2. Another EPL application for the Chizani
project area immediately to the north of Globe Metals & Mining’s (“Globe’s”) niobium-uranium-tantalum-zircon
multi-commodity Kanyika deposit in central Malawi was subsequently granted in mid-December 2007.
In addition to these three 100% owned EPLs, OEPL has entered into two separate Memorandum of
Understandings (“MOUs”) with two local EPL holders to joint venture 90% interests in exploration and mining for
uranium and other minerals (excluding coal) in these two contiguous EPLs to the north of Paladin Energy Ltd’s
(“Paladin’s”) Kayelekera uranium deposit (“Kayelekera”). The EPLs, (Ngana and Ngana East), are presently
granted for coal exploration and development. Ngana and Ngana East are located in the far north of the
country, with their northern boundaries coincident with the Tanzanian border. The two prospects are in a
strategic location, containing basins of Karroo sediments, with the nearest mapped Karroo occurrence being
located some 20km to the north of Kayelekera.
OEPL has leased a transit base and office premises in Lilongwe. These premises are now operational and will
be used as the main base for OEPL’s future operations in Malawi, with field bases to be established in areas
proximal to the EPLs.
Figure 4: Malawi EPLs Location Map
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REVIEW OF OPERATIONS
Mzimba Northwest Project
Mzimba Northwest comprises EPL0211/2007, covering an area of 2,169km2 and is situated in the north-central
portion of Malawi.
Immediately after acquiring the EPL, Oropa commissioned two independent interpretive studies to identify and
prioritise targets for its initial sampling programs. The first study, conducted by Southern Geoscience
Consultants, considered data available from a country-wide airborne radiometric uranium and magnetic
geophysical survey flown in 1984/85 by Hunting Geology and Geophysics Ltd based at the time in the United
Kingdom. The second study, completed by Mackay and Schnellmann Pty Ltd, interpreted Landsat satellite
imagery with the aid of Malawian Geological Survey geological maps and bulletins, combined with the Hunting
airborne geophysical survey, to produce a geological interpretation of the project area.
Last November, OEPL commenced a ground geochemical survey of selected targets identified in the
interpretive studies. Owing to the lack of any previous systematic exploration of the project area, regional
geochemical sampling programs, together with ground radio-metric surveying were the selected methods for
the initial programs. Stream sediment sampling of fine fractions at creek junctions, with panned concentrate
samples at major sites were collected and assayed for uranium plus 28 other elements to evaluate the potential
for a broad suite of minerals.
Sampling focused in the Emoneni district in the north-eastern sector of the EPL (Figure 5) where a north-south
striking ridge coincident with airborne uranium radiometric anomalies has been interpreted to be associated by
Mafingi quartzites. These quartzites, formed from the erosion of the basement sediments during the
Proterozoic era, filled valleys, basins and other topographic low areas. Subsequently, the entire Proterozoic
sequence has experienced deformation and high grade metamorphism. The contact between the quartzites and
gneiss is unconformable, and has been associated with uranium mineralisation. Sixty eight stream sediment
samples, 14 panned concentrate samples, and 26 rock chip samples were collected in the Emoneni area to
complete the initial exploration program for this target.
Figure 5: Emoneni Target Area
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REVIEW OF OPERATIONS
Multi-element results from this pilot geochemical survey outlined an area measuring some 18kms long by up to
6kms wide for follow up intensive investigation based upon uranium results above 100 ppm U308 up to a
maximum of 634 ppm U308. Emoneni was chosen to test the viability of stream sediment geochemistry as a
preliminary assessment of eighteen other uranium exploration targets within the Mzimba Northwest EPL
selected from the earlier remote sensing study.
Result outcomes for uranium exploration are summarised as follows:
�� Stream sediment results above 100 ppm U308 up to a maximum of 634 ppm U308 were returned from some
drainages rising from a northerly trending hill range and adjacent foothills within an area measuring some
18kms long by 6kms wide.
�� Preliminary analysis of the multi-element results shows strong correlation between geochemically elevated
uranium values above 100 ppm U308 with thorium (up to 0.58% Th), lanthanum (up to 1.05% La) and lead (up
to 235 ppm Pb) concentrations. High Th/U and L/U ratios are characteristic of these data.
�� Additionally, samples returning values above 100 ppm U308 are often associated with geochemically elevated
concentrations of vanadium (up to 350 ppm V) and zirconium (up to 0.23 % Zr).
�� Pan concentrate sample results provided confirmatory data.
�� Rock chip sampling gave U308 values up to 42 ppm.
The results of the pilot program effectively demonstrated the application of stream sediment geochemical sampling in
target areas defined from remote sensing studies, as the method has the capacity to effectively discriminate drainage
catchments of interest for further more intensive exploration for uranium.
On the 21st of July 2008 the second phase of the reconnaissance program was initiated at the Emoneni area.
This involved follow up on the initial geochemical sampling, geological investigations and ground radiometric
surveys. The new program covered parts of the Emoneni hills area where previous exploration had yielded
geochemically anomalous U308 values at or above 100 ppm from the initial stream sediment survey. The follow
up initiative included the collection of stream sediment samples upstream of the known anomalies in order to
define their provenance and a pitting program designed to investigate regolith in anomalous areas. Ancillary
survey work included ground radiometric surveying using a hand held gamma ray spectrometer.
The pitting program was carried out on the western flank of the Emoneni hills in the Emoneni-Jandalala area. A
six kilometre baseline was established along with two survey line set on either side of the baseline. This
configuration was used for reconnaissance radiometric surveying at 500 metre intervals along the survey lines
and its were sunk up to 3 metres deep along the baseline at 1000 metre intervals to investigate the soil profile
and collect soil and rock chip samples at one metre depth intervals from each pit. The regolith profile proved to
be deep as none of the pits were successful in reaching bedrock. The encouraging results from the radiometric
surveying are currently being compiled.
A random radiometric survey carried out at the top of the Emoneni hills identified two uraniferous rock types
which are potentially the provenance of the radioactive sediments. The feldspathic-quartz-biotite gneiss is a
very coarse grained leucocratic rock. K-Feldspar constitutes 60% of the rock with grain sizes of up to 30mm.
White quartz is the second dominant mineral and is uniform throughout the package. The biotite is medium to
coarse grained. The quartz-biotite gneiss is characterised by distinct bands of coarse grained clear quartz up to
10mm in diameter, separated by thin bands of biotite. It also contains minor muscovite and plagioclase
feldspar. The total radiometric readings in the vicinity of these rock types averaged 2,000cpm. Chip samples
were collected from these outcropping rocks.
A unique type of vegetation was also observed on the western side of the Emoneni hills towards the Kawiruwiru
River. This pocket of vegetation is characterised by very small leaves peculiar to areas underlain by Karroo
sandstones as observed in the Karroo sandstones of the Ngana area in the north of Malawi. Pits were dug in
the area where this vegetation exists, but the bedrock could not be reached due to hardness of the ground and
the thickness of the overburden. However, the soils recovered from these pits were rich in quartz grits and
pebbles suggesting quartz rich bedrock.
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REVIEW OF OPERATIONS
A total of 76 samples, including 4 soil samples, 15 rock chip samples and 57 stream sediment samples were
collected during this program will be dispatched for multi-element analysis in early September. The results of
these analyses will be interpreted in Perth before another field program is finalised. However, a broader
ground radiometric survey, gridding and soil sampling on the western side of the Emoneni hill is planned during
the December quarter to determine the western extent of the anomaly and the trend of the potential
mineralisation, along with a ground radiometric survey and geological validation of geochemically anomalous
eastern and southern portions of the Emoneni hills area.
Chitunde Project
The Chitunde project (Figure 6 - EPL0212/2007) covering an area of 196km2 is situated some 86km west-northwest
of Lilongwe and is accessible in most parts by sealed roads. The target area is a coincident airborne
radiometric anomaly over an outcropping hill of quartz-syenite. The EPL was applied for to investigate the
potential of this syenite complex. Reconnaissance rock chip sampling over parts of the syenite intrusive complex gave
U3O8 values up to 107 ppm. The highest values of 97 and 107 ppm U3O8 respectively were returned from a locality
described as biotite quartz syenite with quartz pegmatite associations in an area which had given anomalous readings
using a hand held gamma-ray spectrometer. Other geochemically elevated results associated with the highest U3O8
values included anomalous niobium values up to 332 ppm and tantalum values up to 15 ppm.
Stream sediment geochemistry over northern portions of Chitunde Hill gave anomalous results in uranium up to 160
ppm U308, niobium to 745 ppm, zirconium to 0.8% and tantalum to 38 ppm. These results highlight the need to extend
and intensify future exploration coverage of the Chitunde intrusive complex.
A limited number of 10 stream sediment samples were collected from the lower portions of narrow streams rising on
Chitunde Hill. Three samples returned values above 100 ppm U3O8 from streams draining the northern sector of the
hill in an area where few other geochemical data are currently available. The accompanying multi-element results
associated with these samples are characterised by relatively high thorium (up to 933 ppm Th), lanthanum (up to 821
ppm La), niobium (up to 745 ppm Nb), zirconium (up to 0.8% Zr) and tantalum (up to 38 ppm Ta) values. These
anomalous values are regarded as encouraging and highlight the need to extend exploration over the northern sector
of Chitunde Hill.
To date, exploration at Chitunde has been of a preliminary nature. Initial geochemical results and related
reconnaissance surveys have demonstrate however that quartz pegmatite phases within the syenite intrusive complex
forming Chitunde Hill are possibly associated with potassic alteration in an area of geochemically elevated uranium,
niobium and tantalum values. Over the northern sector of the hill where survey data are limited, anomalous stream
sediment geochemistry in uranium, niobium, zirconium and tantalum suggest new areas of future exploration interest.
Further exploration will commence later in the year to identify the extent and geochemical expression of these areas of
interest more precisely. This work will require systematic ground geophysical traversing and geological mapping in
conjunction with soil and rock geochemistry and ancillary petrographic studies to determine mineralogy.
18
REVIEW OF OPERATIONS
Figure 6: Chitunde Exclusive Prospective License
Chizani Project
The 1,283km2 Chizani Project area (EPL0223/2007) is situated in central Malawi adjacent to Globe’s niobiumuranium-
tantalum-zircon multi-commodity Kanyika deposit hosted by alkalic granitoid and pegmatitic zones, and also
lies adjacent to tenements held by CC Mining SA. The EPL is considered to offer uranium exploration potential for
hydrothermal uranium targets and is currently being assessed as part of a remote sensing study designed to provide
for the selection and ranking of target areas for future ground exploration for uranium and other minerals during the
December quarter.
The proximity of the Chizani Project area to Kanyika provides Oropa with a nearby niobium-uranium-tantalum and
zircon deposit model to apply to exploration search parameters within the Chizani area. Recently, Globe announced
an Inferred Mineral Resource of 56.4 Mt of 2,600 ppm Nb205, 70 ppm U308, 120 ppm Ta205 and 4,800 ppm ZrSiO4 at
the Kanyika deposit. After Globe successfully completing a Scoping Study, the company has is presently conducting
a Pre-Feasibility Study on the deposit. The currently defined resource is contained within a deposit measuring 2.1
km in length and 300 metres in width and extends down to an average depth below surface of 120 metres.
19
REVIEW OF OPERATIONS
Ngana and Ngana East Projects (90%)
In November 2007, the Company announced that it had entered into arrangements to secure 90% interests in two
contiguous uranium exploration projects located 20km north of Paladin’s Kayelekera.
The project areas, which are considered to be highly prospective for roll-front style uranium mineralisation based on
an analogous geological setting to the nearby Kayelekera, represent a strategic addition to Oropa’s Malawian
uranium exploration portfolio.
OEPL executed MOUs with the owners of the two granted EPLs for uranium and other minerals except coal covering
Karroo sediments within the project areas. The MOUs cover the Ngana (EPL0133) and Ngana East (EPL0183)
project areas, which collectively cover an area of some 285km2. Under the terms of the MOUs, OEPL is to
incorporate two independent Malawian joint venture companies (“JVCs”), with OEPL holding a 90% shareholding in
each JVC. The current holders’ 10% interests are free carried with each having the option to buyback up to a 20%
contributing interest from OEPL at cost in each JVC up until 1 month after the commencement of a Feasibility Study
undertaken by either of the JVCs. Immediately after incorporation, the JVCs will apply to the Malawian Government
for the exploration rights to uranium and/or other minerals (excluding coal) within the respective EPLs.
Uranium exploration in Malawi currently reflects the high level of interest in the development of Kayelekera, which is
scheduled to be commissioned in December 2008 with planned annual production of 3.3 Mlbs of U3O8 over a mine
life of 7 years, based on Proven and Probable Ore Reserves of 10.46 Mt at 0.108% U3O8.
Upon the granting of the other mineral rights to each JVC, OEPL will have acquired the exploration rights to
significant portfolio of strategic landholdings in Malawi, which host some of the most actively explored sedimentary
uranium provinces in southern Africa and which will position OEPL as a leading Uranium explorer in the country.
Roll-front style uranium mineralisation in northern Malawi is associated with basin structures containing Karroo
sediments. The Kayelekera roll-front uranium deposit is hosted by Karroo sandstone and mudstone sediments
typical of the mineralisation in the region. The more favourable setting for uranium mineralisation is carbonaceous
units which occur in the upper part of repetitious sequences of arkose (sandstone) beds.
Figure 8: Chizani Project Area Malawi
Radiometric Contours Uranium
Figure 7: Chizani Project Area Malawi
Geology
20
REVIEW OF OPERATIONS
At Ngana and Ngana East, the faulted Karroo sedimentary succession includes basal beds and coal measures,
succeeded by North Rukuru sandstone and mudstone sediments covering a similar lithological setting to the nearby
Kayelekera district.
Previous and current mineral exploration over the Ngana and Ngana East Project areas has been focused on coal.
Limited regional exploration activities were undertaken by the Geological Survey of Malawi; the results of which are
being investigated by OEPL.
A starting point for target definition for uranium exploration in Malawi has been a country-wide radiometric survey
conducted in 1984/85 by Hunting Geology and Geophysics Limited, which was based at the time in the United
Kingdom. Despite the proximity of the Ngana and Ngana East EPLs to Kayelekera, these project areas were not
covered by this survey and therefore offer a significant untested Karroo sedimentary environment for roll-front style
uranium mineralisation in northern Malawi.
Brief site inspections of both locations were undertaken by OEPL as part of the MOU agreements. Formal
Shareholders Agreements have recently been prepared and were forwarded to the respective vendors for their
reviews and execution, after which new Malawian joint venture companies will be incorporated prior to any field
activities, which barring any further delays are scheduled to commence in the March 2009 quarter.
Figure 9: Ngana and Ngana East Location Map
21
REVIEW OF OPERATIONS
INDIA
Block D-7 Diamond Project, Chhattisgarh; (9%, plus 9% buy back)
India continues to remain in the background, owing to a lack of any significant progress with having the
Block D-7 project reinstated. The most important development throughout the year was that the
Chhattisgarh high court judge decided that the case was not for the judiciary and assigned the matter to a
recently formed Mining Tribunal located in Delhi. This tribunal has been established to deal with matters
relating to the proposed new Indian Mining Act, and according to the Chattisgarh high court judge, is
competently qualified to deal with the Block D-7 issue. Furthermore, it moves the responsibility away from
the Chattisgarh state and consequently a tribunal decision may be seen as being impartial.
Oropa continues to hold its 10% equity in BVTS with the right to buy back the additional 10% equity in BVTs
at a future date. Throughout 2007/08 Oropa regularly liaised with its Indian joint venture partners and
several visits were made to India by the Company’s directors to obtain updates on the Block D-7 issue and
the two Krishna River Reconnaissance Permit (“RP”) applications in Andhra Pradesh (“AP”).
Raipur West Diamond Project, Chhattisgarh; (10%, plus 10% buy back)
This 2,400km2 rectangular block is situated immediately to the west of Block D-7. The block was applied for
by B.Vijaykumar Exploration Pvt Ltd (“BVTS”) in 2000 to cover a strategic north-west trending structure that
hosts the Raipur Kimberlite Field in the southern portion of Block D-7, and which appears to extend into
Raipur West. The RP application was approved by the Government of Madhya Pradesh and later ratified by
the central government in mid-2002, but the Chhattisgarh state government refuses to issue the RP to
BVTS until the Block D-7 matter is resolved.
Krishna River Valley – Andhra Pradesh; (10%, plus 10% buy back)
In mid-2000 and while field operations were ongoing in Block D-7, Oropa’s geologists conducted a large
reconnaissance program in other states of India to source and apply for additional quality diamond
properties. BVTS subsequently applied for a large first-in-time RP application covering slightly in excess of
4,500km2 over the lower meanders of the Krishna River (“Valley area”). No action was taken by the AP
government from the time of lodgement up until late 2003, with officials claiming that they preferred to wait
on the Chhattisgarh high court’s decision on Block D-7 before making any recommendations to the central
government on the BVTS Valley area application. Meetings with senior Mines Department personnel and
the Minister for Mines later revealed that other Indian companies had also lodged RP applications for areas
within and overlapping the BVTS application. Subsequently, BVTS initiated proceedings in the AP high
court to prevent the state from granting these overlapping applications to other parties by serving a Stay
Order on the AP state.
Krihna River Delta – Andhra Pradesh; (10%, plus 10% buy back)
BVTS applied for this area on the basis that the alluvial diamond potential in the river terraces and gravels
in the Valley area may extend downstream into the delta areas exiting into the Bay of Bengal. BVTS
submitted its RP application covering a wedge shaped area that enveloped the eastern portion of the Valley
area and flared out to cover the delta. This first-in-time application comprising an area of 4,500km2 was
lodged with the AP government on 15 June 2001. In mid-2005, the AP government informed BVTS that no
other parties had applied for the Delta area and that it was recommending the BVTS application to the
central government in Delhi. BVTS was later informed that this application, although approved by the
central government, was being withheld by the state government, presumably because of BVTS’ Stay Order
covering the Valley area RP.
BVTS applied for and was granted a Show Cause Notice in the AP high court which was served on the state
in November 2005. Since that time both the Valley area and Delta area cases continue to be held up in the
AP high court awaiting hearing dates.
22
REVIEW OF OPERATIONS
Oropa’s directors are cautiously optimistic that the Block D-7 matter will be dealt with by the Mining Tribunal in
Delhi, which if reinstated, should pave the way for progress to be made with the three pending RP applications
for Raipur West, Krishna River Valley and Krishna River Delta areas. What is unclear at present is whether
these three RP applications will be dealt with under the Mining Act prevailing at the time of those applications,
or the new act. Oropa’s Indian lawyers are presently looking into this.
23
REVIEW OF OPERATIONS
AUSTRALIAN PROJECTS
During the current year, the Company disposed of its residual 44% interest in the Mulgabbie gold project for a
$20,000 cash payment. The Company retains a 2% nett smelter royalty on 95% of all gold production in excess
of the first 100,000 produced from the total tenement package. More recently, Oropa sold its 5% free carried
interest in the Lake Deborah tenenemt comprising a portion of the Golden Valley Joint Venture (“GVJV”) to
Southern Cross Goldfields Limited (“SXG”) for 200,000 fully paid shares in SXG, plus 1,000,000 options in SXG
convertible to SXG fully paid shares on or before 10 March 2012 at an exercise price of 20 cents each, and
vesting upon SXG discovering a minimum of 250,000 ounces of gold, or 5,000 tonnes of nickel in situ within the
Golden Valley Tenenents comprising the GVJV.
Mt Keith Gold Project; (2% nett smelter royalty)
Oropa holds a 2% nett smelter royalty on all minerals produced from the Mt Keith gold project (M53/490 and
M53/491) arising from its relinquishment of its majority contributing interest in the tenements. Under the terms
of the agreement the tenements are to be maintained in good standing. No mining was undertaken over the
project area during the year.
24
REVIEW OF OPERATIONS
NON-MINERAL INTERESTS
CEPO Systems Pty Ltd; (9.9%)
Oropa currently holds a 9.9% non-contributing share in CEPO Systems Pty Ltd (“CEPO”), a company that
provides order management and supply chain solutions for the small to medium enterprise (SME) market.
CEPO offers its clients cost-effective, efficient electronic platforms which have evolved from CEPO’s many
years of experience with Internet hosted electronic data transmission. Their unique solutions offer a vertically
integrated single electronic platform for any given industry that is affordable and attractive to the SME market.
CEPO’s platform is generic to any industry with current users being retailers, company sales representatives,
suppliers, wholesalers and distributors across a wide range of industries.
While focusing on expanding this market, CEPO continues to develop its wireless technology products and has
expanded its client base with more signings of buying groups during the past 12 months.
25
DIRECTOR’S REPORT
Your directors present their report on the consolidated entity consisting of Oropa Limited (“Oropa, or the
Company”) and the entities it controlled at the end of, or during the year ended 30 June 2008 (“the reporting
period”).
DIRECTORS
The following persons were directors of Oropa during the whole of the financial year and up to the date of this
report:
Brian J Hurley
Philip C Christie
Roderick G Murchison
Bruce N V Tomich
PRINCIPAL ACTIVITIES
The principal activities of the consolidated entity during the course of the financial year were mineral
exploration. There were no significant changes in the nature of those activities during the financial year.
DIVIDENDS
No dividends have been paid or declared since the end of the previous financial year and no dividend is
recommended in respect of this financial year.
NATIVE TITLE
Claims of native title over certain of the company's tenements have been made, and may in the future be made
under the Commonwealth Native Title Act. In the event that native title is established by an indigenous
community over an area that is subject to the company's mining tenements, the nature of the native title may be
such that consent to mining may be required from that community but is withheld.
No determination of native title has yet been made by the Federal Court or any other body with appropriate
jurisdiction in respect of any of the land the subject of the company's tenements. It is also possible that some
of the existing claims may be removed from the National Native Title Tribunal Register for failure to satisfy the
new registration test which became operative upon proclamation of the Native Title Amendment Act 1998.
The consequence of removal of a claim from the Register is that those claimants lose the right to negotiate
under the Native Title Act in respect of the future grant of mining tenements over their claim area.
Due to uncertainties in the application of the Native Title Act, the effect, if any, of these claims and procedures
on Oropa Limited is not clear.
REVIEW OF OPERATIONS
The review of operations is detailed at page 5 of the financial report.
OPERATING RESULTS
During the financial year the consolidated entity incurred a consolidated operating loss after tax of $3,881,094
(2007 - $4,114,065).
SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
The following significant changes in the state of affairs of the parent entity occurred during the financial year:
• On 17 October 2007, Oropa Limited issued 10,300,555 ordinary shares to raise funds for exploration
work on the Pungkut gold project in Indonesia.
• On 18 December 2007, Oropa Limited issued 10,000,000 ordinary shares to raise funds for exploration
work on the Pungkut gold project in Indonesia.
26
DIRECTOR’S REPORT
SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS (Continued)
• On 14 March 2008, Oropa Limited issued 13,347,483 ordinary shares to raise funds for exploration
work on the Pungkut gold project in Indonesia.
• On 15 May 2008 Oropa Limited issued 8,500,000 director incentive options expiring on 31 May 2013
with an exercise price of 15 cents as a measure of remuneration for the directors and to help raise
funds for exploration work on the Pungkut gold project in Indonesia.
• On 6 June 2008, Oropa Limited issued 5,454,545 shares to raise funds for exploration work on the
Pungkut gold project in Indonesia.
EMPLOYEES
The consolidated entity employed 44 employees as at 30 June 2008 (2007: 57 employees)
CORPORATE STRUCTURE
The corporate group consists of the parent entity Oropa Limited, its 100% owned subsidiaries Inland Goldmines
Pty Ltd, Excelsior Resources Pty Ltd, Oropa Technologies Pty Ltd, Oropa Indian Resources Pty Ltd, Oropa
Exploration Pty Ltd and Aberfoyle Pungkut Investments Pte Ltd.
Aberfoyle Pungkut Investments Pte Ltd holds a 75% interest in PT Sorikmas Mining, with an Indonesian
Government mining company PT Aneka Tambang holding the remaining 25%.
LIKELY FUTURE DEVELOPMENTS
Details of important developments occurring in this current financial year have been covered in the review of
operations.
Further information on likely developments in the operations of the consolidated entity and the expected
results have not been included in this report because the directors believe it would be likely to result in
unreasonable prejudice to the consolidated entity.
FINANCIAL POSITION
The net assets of the consolidated entity as at 30 June 2008 are $218,724 (2007: $1,154,913).
ENVIRONMENTAL REGULATION
The consolidated entity has assessed whether there are any particular or significant environmental regulations
which apply. It has determined that the risk of non-compliance is low, and has not identified any compliance
breaches during the year.
INFORMATION ON DIRECTORS
Details of the directors of the Company in office at the date of this report are:
Brian J HURLEY AWASM, MAusIMM
(Chairman – appointed a director on 27 November 1992)
Experience & expertise
Mr Brian Hurley is a mining engineering graduate from the Western Australian School of Mines. Between 1965
and 1990 he was employed by Western Mining Corporation Ltd in many roles including General Manager-
Nickel Division and Senior General Manager-WA. He has been a chairman or director of a number of junior
mining and exploration companies including Defiance Mining NL and Gascoyne Gold Mines NL, a successful
Australian gold producer. Mr Hurley is currently chairman of Jaguar Minerals Ltd, and is a director of Mundo
Minerals Ltd and Herald Resources Ltd.
27
DIRECTOR’S REPORT
INFORMATION ON DIRECTORS (Continued)
Other current directorships
Currently chairman of Jaguar Minerals Limited
Currently a director of Mundo Minerals Limited and Herald Resources Limited
Former directorships in last 3 years
Previously a director of White Gold Mining Limited until 2004
Special responsibilities
Chairman
Interests in shares and options
741,092 ordinary shares in Oropa Limited.
2,200,000 unlisted director options for fully paid ordinary shares at 15 cents at any time on or before the expiry
date of 31 May 2013.
Philip C CHRISTIE
(Chief Executive Officer – appointed a director on 30 November 1992)
Experience and expertise
Mr Philip Christie was formerly involved in the oil and gas industry in Australia, Asia and the Middle East. He
has in excess of 20 years experience in providing geological, reservoir engineering and production well services
to that industry, initally through multinational organisations and later as managing director of a private
consulting group. Since returning to Australia in early 1990 he has provided management consultancy services
to the exploration and mining industry in Australia and South East Asia.
Other current directorships
No other current directorships
Former directorships in last 3 years
No former directorships
Special responsibilities
Managing Director
Interests in shares and options
574,852 ordinary shares in Oropa Limited.
25,202 options to subscribe for fully paid ordinary shares at 20 cents at any time on or before the expiry date of
31 January 2010.
2,700,000 unlisted director options for fully paid ordinary shares at 15 cents at any time on or before the expiry
date of 31 May 2013.
Roderick G MURCHISON
(Non Executive Director – appointed a director on 1 September 1999)
Experience and expertise
Mr Roderick Murchison held senior management positions in Singapore before establishing his own business
based in Singapore and Malaysia, servicing large multinational distributors in UK, Europe, USA and Australia.
Mr Murchison has been a substantial Oropa shareholder since 1993 and he has represented the interests of
other substantial Singaporean and Malaysian shareholders from time to time. Recently Mr Murchison has
become actively involved with e-commerce trading activities. His many years of international management
experience will be beneficial to the Oropa board in negotiation of the company’s international projects.
28
DIRECTOR’S REPORT
INFORMATION ON DIRECTORS (Continued)
Other current directorships
No other current directorships
Former directorships in last 3 years
No former directorships
Special responsibilities
Nomination committee member
Audit committee member
Remuneration committee member
Interests in shares and options
849,852 ordinary shares in Oropa Limited.
101,408 options to subscribe for fully paid ordinary shares at 20 cents at any time on or before the expiry date
of 31 January 2010.
1,300,000 unlisted director options for fully paid ordinary shares at 15 cents at any time on or before the expiry
date of 31 May 2013.
Bruce N V TOMICH BSc(Hons)
(Non Executive Director – appointed a director on 3 June 2003)
Experience and expertise
Mr Bruce Tomich is a geologist with 34 years post-graduate experience in the mining industry. Mr Tomich
worked in the Australian mining industry as a geologist before commencing as a mining analyst with a stockbroking
firm in 1987. Subsequent roles involved executive management positions in investment banking,
corporate and project finance and business development, before establishing his consultancy practice in 1987.
Mr Tomich was instrumental in introducing the Pungkut gold project in Indonesia to the company in 2002. He
continues to provide consulting services to Oropa as required, particularly in the area of project evaluation and
technical analysis of projects.
Other current directorships
Non-executive director of Burdekin Resources Ltd
Former directorships in last 3 years
No former directorships
Special responsibilities
Nomination committee member
Audit committee member
Remuneration committee member
Interests in shares and options
500,000 ordinary shares in Oropa Limited.
1,300,000 unlisted director options for fully paid ordinary shares at 15 cents at any time on or before the expiry
date of 31 May 2013.
29
DIRECTOR’S REPORT
INFORMATION ON DIRECTORS (Continued)
Misha A Collins CFA
(Non Executive Director – appointed a directior on 8 July 2008)
Experience and expertise
Mr Misha Collins, a newly appointed Non Executive Director to the Oropa Limited board brings extensive
financial and capital markets experience to the board as well as having a complimentary technical background
in metallurgy. Mr Collins obtained his Bachelor of Engineering in Metallurgy, graduating with First Class Honors
from the RMIT University which saw him fulfill roles as a metallurgy cadet and graduate with BHP for a 3 year
period. Subsequently, Mr Collins obtained a Graduate Certificate in Banking and Finance from Monash
University and a Graduate Diploma in Applied Finance and Investment from the Financial Services Institute of
Australia. He also completed the CFA program with the US based CFA Institute and has been awarded the
Chartered Financial Analyst designation (CFA). The last 10 years have seen Mr Collins fulfill varying roles with
BT Funds Management as an equity analyst covering both domestic and international market sectors together
with market strategy and commodity forecasting. Currently Mr Collins is operating his own investment and
trading business.
Other current directorships
Insight Capital Management Pty Ltd
Former directorships in last 3 years
No former directorships
Special responsibilities
Nomination committee member
Audit committee member
Remuneration committee member
Interests in shares and options
15,665,000 ordinary shares in Oropa Limited.
1,000,000 unlisted director options for fully paid ordinary shares at 15 cents at any time on or before the expiry
date of 31 May 2013.
Company secretary
The company secretary is Mr Dean W Calder B.Bus CA. Mr Calder was appointed to the position of company
secretary in 1999. He has had many years of experience in attending to the taxation, accounting and company
secretarial requirements of mineral exploration companies, and is currently a Principal of the firm Calder Roth &
Co, Chartered Accountants.
MEETINGS OF DIRECTORS
The following table sets out the number of meetings of the company's directors held during the year ended 30
June 2008, and the number of meetings attended by each director.
Number eligible
to attend
Number
Attended
B J Hurley 11 11
P C J Christie 11 11
R G Murchison 11 11
B Tomich 11 11
30
DIRECTOR’S REPORT
REMUNERATION REPORT (AUDITED)
Oropa Limited has established a remuneration committee comprising of Mr BNV Tomich, Mr RG Murchison and
Mr MA Collins.
The responsibilities and functions of the Remuneration Committee are as follows:
• review the competitiveness of the Company’s executive compensation programs to ensure:
(a) the attraction and retention of corporate officers;
(b) the motivation of corporate officers to achieve the Company’s business objectives; and
(c) the alignment of the interests of key leadership with the long-term interests of the Company’s
shareholders;
• review trends in management compensation, oversee the development of new compensation plans
and, when necessary, approve the revision of existing plans;
• review the performance of executive management;
• review and approve Chairperson and chief executive officer goals and objectives, evaluate Chairperson
and chief executive officer performance in light of these corporate objectives, and set Chairperson and
chief executive officer compensation levels consistent with company philosophy;
• approve the salaries, bonus and other compensation for all senior executives, the committee will
recommend appropriate salary, bonus and other compensation to the Board for approval;
• review and approve compensation packages for new corporate officers and termination packages for
corporate officers as requested by management;
• review and approve the awards made under any executive officer bonus plan, and provide an
appropriate report to the Board;
• review and make recommendations concerning long-term incentive compensation plans, including the
use of share options and other equity-based plans. Except as otherwise delegated by the Board, the
committee will act on behalf of the Board as the “Committee” established to administer equity-based
and employee benefit plans, and as such will discharge any responsibilities imposed on the committee
under those plans, including making and authorising grants, in accordance with the terms of those
plans; and
• review periodic reports from management on matters relating to the Company’s personnel
appointments and practices.
Principles used to determine the nature and amount of remuneration
• Non-executive directors receive fees in cash. The fees are fixed and approved by shareholders.
• Mr Christie is paid an hourly rate for hours worked on behalf of the Company.
• Where non-executive directors provide services in their area of expertise they receive payment at
normal commercial rates.
• There are no executives (other than directors) with authority for strategic decision and management.
• The remuneration of the directors is not linked directly to the performance of the company.
31
DIRECTOR’S REPORT
REMUNERATION REPORT (AUDITED)
Details of remuneration
Details of the remuneration of key management personnel and related parties of Oropa Limited, including their
personally related entities are set out below for the year ended 30 June 2008.
2008 Short-term Post Employment Long Term
Equity Perfor
mance
related
Name
Cash
Salary &
Fees
Non
Monetary
Benefits
Superannuation
Retirement
Benefits
Incentive
Plans
Long
service
leave
Share
based Total
%
PCJ Christie(a) 216,600 3,475 - - - - 67,503 287,578 -
BJ Hurley(b) 46,090 3,475 450 - - - 56,252 106,267 -
RG
Murchison(c)
43,983 3,474 - - - - 33,751 81,208 -
BNV
Tomich(d)
30,360 3,474 - - - 33,751 67,585 -
Dean
Pluckhahn(e)
125,004 - 11,250 - - - - 136,254 -
Total 462,037 13,898 11,700 - 191,257 678,892 -
2007 Short-term Post Employment Long term Equity Perfor
mance
related
Name Cash
Salary
& Fees
Non
Monetary
Benefits
Superannuation
Retirement
benefits
Incentive
plans
Long
service
leave
Share
based
Total
Directors
PCJ Christie
212,422 3,594 - - - - - 216,016 -
BJ Hurley 40,500 3,594 450 - - - - 44,544 -
RG
Murchison
45,878 3,594 - - - - - 49,472 -
BNV Tomich 27,620 3,593 - - - - - 31,213 -
Dean
Pluckhahn
115,000 - 10,350 - - - 12,200 137,550 -
Total 441,420 14,375 10,800 - - - 12,200 478,795 -
There are no other key management personnel.
(a) $3,500 in directors fees paid to PCJ Christie and $213,100 in consulting fees paid to Yellowmoon Gold
Mines Pty Ltd, a personally related entity of PCJ Christie.
(b) $5,000 in directors fees paid to BJ Hurley and $41,090 in consulting fees paid to Bencove Pty Ltd, a
personally related entity of BJ Hurley.
(c) $3,500 in directors fees paid to RG Murchison and $40,483 paid to Murchison Exports Ltd, a
personally related entity of RG Murchison.
(d) $3,500 in directors fees and $26,860 in consulting fees paid to BNV Tomich.
(e) $125,004 in salary and wages paid to D Pluckhahn.
32
DIRECTOR’S REPORT
REMUNERATION REPORT (AUDITED)
Compensation Options: Granted and vested during the year (Consolidated)
Terms and Conditions for each Grant Vested
30 June 2008 Granted
No
Grant
Date
Fair
value
per
option
at grant
date
($)
Exerc
ise
price
per
optio
n
($)
Expiry
date
First
Exercise
date
Last
exercise
date
No %
P Christie 3,000,000 12/05/2008 0.02250 0.15 31/05/13 15/05/08 31/05/13 3,000,000 100
B Hurley 2,500,000 12/05/2008 0.02250 0.15 31/05/13 15/05/08 31/05/13 2,500,000 100
R Murchison 1,500,000 12/05/2008 0.02250 0.15 31/05/13 15/05/08 31/05/13 1,500,000 100
B Tomich 1,500,000 12/05/2008 0.02250 0.15 31/05/13 15/05/08 31/05/13 1,500,000 100
On 8 July 2008, the directors transferred between them 1,000,000 of their unlisted options to newly appointed
non executive director Misha Collins.
Terms and Conditions for each Grant Vested
30 June
2007
Granted
No
Grant
Date
Fair
value
per
option
at
grant
date
($)
Exerc
ise
price
per
optio
n
($)
Expiry
date
First
Exercise
date
Last
exercise
date
No %
P Christie - - - - - - - - -
B Hurley - - - - - - - - -
R
Murchison
- - - - - - - - -
B Tomich - - - - - - - - -
D
Pluckhahn
500,000 31/01/07 0.0244 0.13 31/12/09 31/01/07 31/12/09 500,000 100
Options Granted as part of remuneration
2008 Value of options
granted during
the year
Value of options
exercised during
the year
Value of options
lapsed during the
year
Remuneration
consisting of
options for the
year
%
P Christie 67,503 - - 23.47%
B Hurley 56,252 - - 52.93%
R Murchison 33,751 - - 41.56%
B Tomich 33,751 - - 49.93%
2007 Value of options
granted during
the year
Value of options
exercised during
the year
Value of options
lapsed during the
year
Remuneration
consisting of
options for the
year
%
D Pluckhahn 12,200 - - 9.59%
33
DIRECTOR’S REPORT
REMUNERATION REPORT (AUDITED)
Options Granted as part of remuneration (continued)
For details on the valuation of the options, including models and assumptions used, please refer to note 12.
There were no alterations to the terms and conditions of options granted as remuneration since their grant
date.
There were no forfeitures during the period.
Shares issued on exercise of compensation options (Consolidated)
30 June 2008 Shares Issued
No
Paid per share Unpaid per share
P Christie - - -
B Hurley - - -
R Murchison - - -
B Tomich - - -
30 June 2007 Shares Issued
No
Paid per share Unpaid per share
D Pluckhahn - - -
Consultancy Contract
Director Philip Christie trading as Yellowmoon Gold Mines Pty Ltd has renegotiated his consultancy agreement
with Oropa Limited. This agreement came into effect on 10 January 2008 and runs for a period of three years.
Consultancy fees of $17,500 are payable per month.
Should the contract be terminated prior to the expiry date of the consultancy agreement a termination fee will be
payable up to a maximum of $425,000.
The directors of Oropa Limited have passed a director’s resolution to effect this.
Officer Emoluments
Fees of $72,270 were paid to Calder Roth & Co, an accounting firm of which DW Calder is a principal, for
accounting, company secretarial, taxation and other services during the year.
Directors and Officer Insurance
During the year $13,898 was paid for Directors and officeholders insurance which covers all directors and
officeholders.
SHARES UNDER OPTION
Unissued ordinary shares of Oropa Limited under option at the date of this report are as follows:
• 12,791,440 options to subscribe for fully paid ordinary shares exercisable at 20 cents at any time
on or before the expiry date of 31 January 2010.
• 8,510,285 options to subscribe for fully paid ordinary shares exercisable at 20 cents at any time on
or before the expiry date of 31 January 2011.
These options are quoted on the Australian Securities Exchange Limited.
• 500,000 unlisted options exercisable at 12 cents at any time on or before the expiry date of 20
October 2008.
• 2,700,000 unlisted employee options exercisable at 13 cents at any time on or before the expiry
date of 31 December 2009.
• 8,500,000 director options exercisable at 15 cents at any time on or before the expiry date of 31
May 2013.


36
CORPORATE GOVERNANCE STATEMENT
Oropa Limited (“Oropa, or the Company”) has adopted systems of control and accountability as the basis for
the administration of corporate governance. Some of these policies and procedures are summarised below.
The following additional information about the Company's corporate governance practices is set out on the
Company's website at www.oropa.com.au:
• Corporate governance disclosures and explanations;
• Statement of Board and Management Functions;
• Nomination Committee Charter;
• Policy and procedure for selection and appointment of new directors;
• Summary of code of conduct for directors and key executives;
• Summary of policy on securities trading;
• Audit Committee Charter;
• Policy and procedure for selection of external auditor and rotation of audit engagement partners;
• Summary of policy and procedure for compliance with continuous disclosure requirements;
• Summary of arrangements regarding communication with and participation of shareholders;
• Summary of Company's risk management policy and internal compliance and control system;
• Process for performance evaluation of the Board, Board committees, individual directors and key executives;
• Remuneration Committee Charter; and
• Corporate Code of Conduct.
EXPLANATIONS FOR DEPARTURES FROM BEST PRACTICE RECOMMENDATIONS
During the Reporting Period the Company has complied with each of the Ten Essential Corporate Governance
Principles1 and the corresponding Best Practice Recommendations2 as published by the ASX Corporate Governance
Council ("ASX Principles and Recommendations"), other than in relation to the matters specified below.
Principle
Ref
Recommendation
Ref
Notification of Departure Explanation for Departure
2
2.1 No director of the Company is
independent in accordance with
the test in box 2.1 ("Independent
Test") of the best practice
recommendations as published
by ASX Corporate Governance
Council.
The majority of directors are
considered independent by the board
for the reasons set out below under the
heading "Identification of Independent
Directors". (see page 37)
2
2.2 The Chairperson does not satisfy
paragraph 2 of the Independence
Test.
The board considers Mr Hurley to act
in an independent manner for the
reasons set out under the heading
"Identification of Independent
Directors". (see page 37)
4 4.3 The audit committee comprises 2
members, which is less than the
minimum 3 member composition
recommended under best
practice recommendation 4.3.
The members of the audit committee
are both independent from
management and have experience
relevant to carry out the obligations
and duties of an audit committee. It is
considered no additional benefit would
be gained by adding another member
to the audit committee.
SKILLS, EXPERIENCE, EXPERTISE AND TERM OF OFFICE OF EACH DIRECTOR
A profile of each director containing the applicable information is set out on pages 26- 29 of the Annual Report.
1 A copy of the Ten Essential Corporate Governance Principles are set out on the Company’s website under the Section entitled "Corporate
Governance".
2 A copy of the Best Practice Recommendations are set out on the Company’s website under the section entitled "Corporate Governance".
37
CORPORATE GOVERNANCE STATEMENT
IDENTIFICATION OF INDEPENDENT DIRECTORS
The independent directors of the Company are Brian Hurley, Roderick Murchison and Bruce Tomich, subject to
the comments set out below.
Mr Hurley provides mining consulting services to the Company. The fees for his consulting services are
material to the Company, but are not the sole source of Mr Hurley’s income. The consulting services relate to
Mr Hurley’s technical management involvement in the Company’s projects.
As a result of Mr Hurley providing material consulting services to the Company he does not fit within paragraph
3 of the Independence Test. Mr Hurley passes all other aspects of the Independence Test.
The Board (in absence of Mr Hurley) considers he is capable of and demonstrates he consistently makes
decisions and takes actions which are designed to be for the best interest of the Company and therefore
consider him to be independent.
Messrs Murchison and Tomich both provide consultancy services to the Company. The fees for their services
are not material to the Company. Accordingly the Board considers these directors to be independent.
STATEMENT CONCERNING AVAILABILITY OF INDEPENDENT PROFESSIONAL ADVICE
If a director considers it necessary to obtain independent professional advice to properly discharge the
responsibility of his office as a director then, provided the director first obtains approval for incurring such
expense from the chairperson, which will not be unreasonably withheld, the Company will pay the reasonable
expenses associated with obtaining such advice.
NAMES OF NOMINATION COMMITTEE MEMBERS AND THEIR ATTENDANCE AT COMMITTEE
MEETINGS
The following table identifies those directors who are members of the Nomination Committee and shows their
attendance at committee meetings:
Name No. of meetings held No. of meetings attended
Roderick G Murchison 1 1
Bruce Tomich 1 1
NAMES AND QUALIFICATIONS OF AUDIT COMMITTEE MEMBERS
The following directors are members of the Audit Committee, Roderick Murchison (Chairman) and Bruce
Tomich. Both are independent non-executive directors, with experience in finance and mining industries as set
out in this Annual Report at page 26 - 29.
NUMBER OF AUDIT COMMITTEE MEETINGS AND NAMES OF ATTENDEES
Name No. of meetings held No. of meetings attended
Roderick G Murchison 1 1
Bruce Tomich 1 1
38
CORPORATE GOVERNANCE STATEMENT
CONFIRMATION WHETHER PERFORMANCE EVALUATION OF THE BOARD AND ITS MEMBERS HAVE
TAKEN PLACE AND HOW CONDUCTED
During the Reporting Period an evaluation of the Board and its members was carried out. The evaluation
process comprised an information review by the Chairman.
COMPANY’S REMUNERATION POLICIES
Non-executive directors receive fees in cash. The fees are fixed and approved by shareholders.
Mr Christie has a contract for services pursuant to which he is paid an hourly rate for hours worked on behalf of
the Company.
Where non-executive directors provide services in their area of expertise they receive payment at normal
commercial rates.
The directors may be issued with options as part of their remuneration package. They are required to be issued
with shareholder approval and are in accordance with thresholds set in plans approved by shareholders.
The remuneration of the directors is not linked directly to the performance of the company.
NAMES OF REMUNERATION COMMITTEE MEMBERS AND THEIR ATTENDANCE AT COMMITTEE
MEETINGS.
Name No of meetings held No of meetings attended
Roderick G Murchison 1 1
Bruce Tomich 1 1
EXISTENCE AND TERMS OF ANY SCHEMES FOR RETIREMENT BENEFITS FOR NON-EXECUTIVE
DIRECTORS
There are no termination or retirement benefits for non-executive directors.
39
INCOME STATEMENT
FOR THE YEAR ENDED 30 JUNE 2008
Notes Consolidated Parent Entity
2008 2007 2008 2007
$ $ $ $
Revenue 2 63,406 70,526 63,406 70,526
Corporate secretarial expenses (39,377) (61,588) (38,367) (60,952)
Depreciation and amortisation 3(a) (18,217) (5,828) (15,010) (5,816)
Employee benefits expense (137,096) (145,450) (137,096) (145,450)
Exploration expenditure written off 3(a) (2,178,983) (2,407,217) (127,421) (569,875)
External consultancy expenses (126,050) (210,573) (88,073) (177,500)
Foreign exchange loss (883,477) (914,317) (724,139) (714,779)
Insurance expenses (19,114) (44,832) (19,114) (44,832)
Provision for diminution in value of
investments 3(a) - - - -
Provision for doubtful debts 3(a) - - (1,237,588) (1,216,865)
Loss on sale of plant and equipment 3 (a) (4,716) - (4,716)
Rental expenses 3(a) (44,644) (38,779) (44,644) (38,779)
Share based payments (164,350) (81,891) (191,250) (81,891)
Travel and entertainment expenses (34,122) (34,694) (30,272) (32,149)
Other expenses (294,354) (239,422) (288,702) (238,340)
Loss before income tax (3,881,094) (4,114,065) (2,882,986) (3,256,702)
Income tax expense 3(b) - - - -
Net loss after income tax (3,881,094) (4,114,065) (2,882,986) (3,256,702)
Net loss after income tax attributable to the
members of the parent entity (3,881,094) (4,114,065) (2,882,986) (3,256,702)
Basic/diluted loss per share 18 (0.02) (0.04)
(cents per share)
The above Income Statement should be read in conjunction with the accompanying notes.
40
BALANCE SHEET
AS AT 30 JUNE 2008
Notes Consolidated Parent Entity
2008 2007 2008 2007
$ $ $ $
CURRENT ASSETS
Cash and cash equivalents 17(a) 456,691 1,451,496 234,733 1,040,620
Trade and other receivables 4 147,625 131,302 39,079 24,199
Other financial assets 5 41,333 1,333 41,333 1,333
TOTAL CURRENT ASSETS 645,649 1,584,131 315,145 1,066,152
NON-CURRENT ASSETS
Other 7 108,382 63,725 - -
Property, plant and equipment 6 98,133 92,880 55,781 55,435
TOTAL NON-CURRENT ASSETS 206,515 156,605 55,781 55,435
TOTAL ASSETS 852,164 1,740,736 370,926 1,121,587
CURRENT LIABILITIES
Trade and other payables 8 193,510 192,124 43,267 99,322
Provisions 9 381,415 331,697 31,776 8,444
Other 17(a) 25,186 24,242 23,864 24,242
TOTAL CURRENT LIABILITIES 600,111 548,063 98,907 132,008
NON-CURRENT LIABILITIES
Trade and other payables 8 33,329 37,760 -
TOTAL NON-CURRENT LIABILITIES 33,329 37,760 - -
TOTAL LIABILITIES 633,440 585,823 98,907 132,008
NET ASSETS 218,724 1,154,913 272,019 989,579
SHAREHOLDERS’ EQUITY
Parent entity interest:
Contributed equity 10 35,386,145 33,411,976 35,386,145 33,411,976
Reserves 11(a)(b) 2,454,846 1,484,110 823,265 632,019
Accumulated losses 11(c) (37,720,718) (33,839,624) (35,937,391) (33,054,416)
Total parent entity interest 120,273 1,056,462 272,019 989,579
Minority interest in controlled entities 16(b) 98,451 98,451 - -
TOTAL SHAREHOLDERS'
EQUITY 218,724 1,154,913 272,019 989,579
The above Balance Sheet should be read in conjunction with the accompanying notes.
41
CASH FLOW STATEMENT
FOR THE YEAR ENDED 30 JUNE 2008
Notes Consolidated Parent Entity
2008 2007 2008 2007
$ $ $ $
CASH FLOWS FROM
OPERATING ACTIVITIES
Payments to creditors and suppliers (738,672) (678,303) (693,551) (638,895)
Interest received 23,406 70,526 23,406 70,526
NET CASH FLOWS USED IN
OPERATING ACTIVITIES 17(b) (715,266) (607,777) (670,145) (568,369)
CASH FLOWS FROM
INVESTING ACTIVITIES
Mining exploration and evaluation expenditure (2,094,134) (2,318,970) (127,421) (569,875)
Purchase of property, plant and equipment (47,587) (35,638) (20,386) (26,225)
Increase in security deposits paid (55,751) - - -
Repayment of loans from controlled entities 3,877
Advances in loans to controlled entities - - (1,961,723) (1,931,644)
NET CASH FLOWS USED IN
INVESTING ACTIVITIES (2,193,595) (2,354,608) (2,109,530) (2,527,744)
CASH FLOWS FROM FINANCING
ACTIVITIES
Proceeds from issue of shares and options 2,042,427 2,126,275 2,042,424 2,126,275
Share and option issue costs (68,255) (175,570) (68,255) (175,570)
NET CASH FLOWS
FROM FINANCING ACTIVITIES 1,974,172 1,950,705 1,974,169 1,950,705
Net increase / (decrease) in cash and cash
Equivalents held (934,689) (1,011,680) (805,506) (1,145,408)
Effects of exchange rate changes on cash (59,738) (63,131) -
Cash and cash equivalents at the beginning of the
financial year 1,427,254 2,502,065 1,016,377 2,161,785
Cash and cash equivalents at the end of the
financial year 17(a) 432,827 1,427,254 210,871 1,016,377
The above Statement of Cash Flows should be read in conjunction with the accompanying notes.
42
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2008
Consolidated
Share Capital Reserves Accumulated Minority Total
Losses Interest
$ $ $ $ $
Balance at 1.7.06 31,525,228 479,003 (29,725,559) 98,451 2,377,123
Issue of shares 2,062,318 - - - 2,062,318
Share issue costs (175,570) - - - (175,570)
Foreign currency reserve - 859,259 - - 859,259
Issue of options - 145,848 - - 145,848
Loss for the year - - (4,114,065) - (4,114,065)
Balance at 30.06.07 33,411,976 1,484,110 (33,839,624) 98,451 1,154,913
Balance at 1.7.07 33,411,976 1,484,110 (33,839,624) 98,451 1,154,913
Issue of shares 2,042,423 - - - 2,042,423
Share issue costs (68,255) - - - (68,255)
Foreign currency reserve - 779,487 - - 970,737
Issue of options - 191,249 - -
Loss for the year - - (3,881,094) - (3,881,094)
Balance at 30.06.08 35,386,143 2,454,846 (37,720,718) 98,451 218,724
Parent
Share Capital Reserves Accumulated Minority Total
Losses Interest
$ $ $ $ $
Balance at 1.7.06 31,525,228 486,171 (29,797,714) - 2,213,685
Issue of shares 2,062,318 - - - 2,062,318
Share issue costs (175,570) - - - (175,570)
Foreign currency reserve - - - - -
Issue of options - 145,848 - - 145,848
Loss for the year - - (3,256,702) - (3,256,702)
Balance at 30.06.07 33,411,976 632,019 (33,054,416) - 989,579
Share Capital Reserves Accumulated Minority Total
Losses Interest
$ $ $ $ $
Balance at 1.7.07 33,411,976 632,019 (33,054,416) - 989,579
Issue of shares 2,042,424 - - - 2,042,424
Share issue costs (68,255) - - - (68,255)
Foreign currency reserve - - - - 191,246
Issue of options - 191,249 - - -
Loss for the year - - (2,882,975) - (2,882,975)
Balance at 30.06.08 35,386,145 823,268 (35,937,391) 272,019
The above Statement of Changes in Equity should be read in conjunction with the accompanying notes.
43
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2008
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The financial report is a general purpose financial report that has been prepared in accordance with
Accounting Standards, Urgent Issues Group Consensus Views, other authoritative pronouncements
of the Australian Accounting Standards Board and the Corporations Act 2001.
The financial report covers the economic entity of Oropa Limited and controlled entities, and Oropa
Limited as an individual parent entity and was authorised for issue in accordance with a resolution of
the directors on 19 September 2008. Oropa Limited is a listed public company, incorporated and
domiciled in Australia.
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
Statement of compliance
The financial report is a general purpose financial report which has been prepared in accordance
with Australian Accounting Standards (AASBs) and the Corporations Act 2001. The consolidated
financial report of the Company and Group (note 18) also complies with International Financial
Reporting Standards and interpretations adopted by the International Accounting Standards Board.
Adoption of New and Revised Accounting Standards
In the current year, the group has adopted all of the new and revised standards and interpretations
issued by the Australian Accounting Standards Board (the AASB) that are relevant to its operations
and effective for the current annual reporting period. The adoption of these new and revised
Standards and Interpretations has not resulted in any material changes to the Group’s accounting
policies.
At the date of authorisation of the financial report, certain new accounting standards and
interpretations have been published that are not mandatory for 30 June 2008 reporting periods. The
assessment of the impact of new standards and interpretations that may affect the Group is set out
below:
The following Standards and Interpretations were in issue but not yet effective:
(i) AASB 8 Operating Segments and AASB 2007-3 Amendments to Australian Accounting Standards.
This is effective for annual reporting periods beginning on or after 1 January 2009. AASB 8 will result
in a significant change in the approach to segment reporting, as it requires adoption of a
‘management approach’ to reporting on financial performance. The information being reported will
be based on what the key decision makers use internally for evaluating segment performance and
deciding how to allocate resources to operating segments. The Group has not yet decided when to
adopt AASB 8. Application of ASB 8 may result in different segments, segment results and different
types of information being reported in the segment note of the financial report. However, at this
stage, it is not expected to affect any of the amounts recognised in the financial statements.
(ii) Revised AASB 101 Presentation of Financial Statements and AASB 2007-8 Amendments to
Australian Accounting Standards arising from AASB 101.
A revised standard AASB 101 was issued in September 2007 and is applicable for annual reporting
periods beginning on or after 1 January 2009. It requires the presentation of a statement of
comprehensive income and makes changes to the statement of changes in equity, but will not affect
any of the amounts recognised in the financial statements. If an entity has made a prior period
adjustment or has reclassified items in the financial statements, it will need to disclose a third
balance sheet (statement of financial position), this one being as at the beginning of the comparative
period. The Group intends to apply the revised standard from 1 July 2009.
44
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2008
Adoption of New and Revised Accounting Standards (continued)
(iii) AASB 123 Borrowing Costs and AASB 2007-6 Amendments to Australian Accounting Standards
arising from AASB 123 (AASB 1, AASB 101, AASB 107, AASB 111, AASB 116 and AASB 138 and
Interpretations 1 & 122).
The revised AASB 123 is applicable to annual reporting periods commencing on or after 1 January
2009. It has removed the option to expense all borrowing costs and – when adopted – will require
the capitalisation of all borrowing costs directly attributable to the acquisition, construction or
production of a qualifying asset. There will be no impact on the financial report of the group as the
group does not have any borrowings.
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, financial assets and financial liabilities for
which the fair value basis of accounting has been applied.
Accounting Policies
Going Concern
The consolidated financial statements have been prepared on a going concern basis.
However, the ability of the company and the consolidated entity to actively explore and continue as a
going concern, and to meet their debts and commitments as they fall due, is dependant upon further
capital raisings.
The Directors are confident that the company will be successful in raising further capital and,
accordingly, have prepared the financial report on a going concern basis. At this time, the directors
are of the opinion that no asset is likely to be realised for an amount less than the amount at which it
is recorded in the financial report at 30 June 2008. Accordingly, no adjustments have been made to
the financial report relating to the recoverability and classification of the asset carrying amounts or
the amounts and classification of liabilities that might be necessary should the company not continue
as a going concern.
(a) Principles of Consolidation
A controlled entity is any entity Oropa Limited has the power to control the financial and operating
policies of so as to obtain benefits from its activities.
A list of controlled entities is contained in Note 18 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 profit 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.
(b) Income Tax
The charge for current income tax expenses is based on the profit for the year adjusted for any nonassessable
or disallowed items. It is calculated using tax rates that have been enacted or are
substantively enacted by the balance sheet date.
45
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2008
(b) Income Tax (continued)
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 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 tax 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 & Equipment
Each class of property, plant and equipment is carried at cost or fair value less, where applicable,
any accumulated depreciation and impairment losses.
Plant and equipment
Property, 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 that 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.
Depreciation
The depreciable amount of all Property, Plant and Equipment (other than Leasehold Improvements
and certain plant and equipment which are based on the prime cost method) is based on the
diminishing value method over their useful lives to the Company commencing from the time the
assets are held ready for use. The depreciation rates used for plant and equipment vary between
2.5% and 40%.
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 value is greater than its estimated recoverable amount.
Gains and losses on disposals are determined by comparing proceeds with the carrying amount.
These gains and losses are included in the income statement.
(d) Acquisition of Assets
The purchase method of accounting is used for all acquisitions of assets regardless of whether
shares or other assets are acquired. Cost is determined as the fair value of the assets given up,
shares issued or liabilities undertaken at the date of acquisition plus costs incidental to the
acquisition. Where shares are issued in an acquisition, the value of the shares is determined having
reference to the fair value of the assets or net assets acquired, including goodwill or discount on
acquisition where applicable.
46
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2008
(d) Acquisition of Assets (continued)
Where settlement of any part of cash consideration is deferred, the amounts payable in the future are
discounted to their present value as at the date of the acquisition. The discount rate used is the rate
at which a similar borrowing could be obtained under comparable terms and conditions.
(e) Exploration and Evaluation 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
areas 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.
(f) 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.
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.
Financial liabilities
Non-derivative financial liabilities are recognised at amortised cost, comprising original debt less
principal payments and amortisation.
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 assesses whether there is objective evidence that a financial
instrument has been impaired. Impairment losses are recognised in the income statement.
(g) 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 asset’s carrying value. Any excess of the asset’s
carrying value over its recoverable amount is expensed to the income statement.
(h) Interest in Joint Ventures
The economic entity’s share of the assets, liabilities, revenue and expenses of joint venture
operations are included in the appropriate items of the consolidated income statement and
consolidated balance sheet.
47
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2008
(h) Interest in Joint Ventures (continued)
The economic entity’s interest in joint venture entities are brought to account using the equity method
of accounting in the consolidated financial statements. The parent entity’s interest in joint venture
entities are brought to account using the cost method.
(i) 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 costs 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 qualifying cashflow 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.
Exchange rate 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.
(j) Revenue
Interest revenue is recognised on a proportional basis taking into account the interest rates
applicable to the financial assets. Revenue from the sale of assets is recognised at the date that the
contract is entered into.
All revenue is stated net of the amount of goods and services tax (GST).
(k) Employee Benefits
Provision is made for the group’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 oncosts.
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.
(l) Provisions
Provisions are recognised when the group has a legal or constructive obligation, as a result of a past
event, for which it is probable that an outflow of economic benefits will result and that outflow can be
reliably measured.
48
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2008
(m) 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.
(n) Goods and Services Tax (GST)
Revenues, expenses and assets are recognised net of the amount of GST, except where the amount
of GST is not recoverable from the Australian Taxation 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.
(o) Share Based Payment Transactions
The group provides benefits to the directors and senior executives in the form of share-based
payment transactions, whereby services are rendered in exchange for shares or rights over shares
(‘equity settled transactions’).
The cost of these equity settled transactions with directors is measured by reference to the fair value
at the date at which they are granted. The fair value is determined by an external valuer using the
Black and Scholes model.
In valuing equity-settled transactions, no account is taken of any performance conditions, other than
conditions linked to price of the shares of Oropa Limited.
The cost of equity-settled transactions is recognised, together with a corresponding increase in
equity, over the period in which the market conditions are fulfilled.
The cumulative expense recognised for equity settled transactions at each reporting date until
vesting date reflects (i) the extent to which the vesting period has expired and (ii) the number of
awards that in the opinion of the directors will ultimately vest. The opinion is formed on the best
available information at balance date. No adjustment is made for the likelihood of market
performance conditions being met as the effect of these conditions is included in the determination of
fair value at grant date.
No expense is recognised for awards that do not ultimately vest, except for awards where vesting is
conditional upon market condition.
Where the terms of an equity-settled award are modified, as a minimum an expense is recognised as
if the terms had not been modified. In addition, an expense is recognised for any increase in the
value of the transaction as a result of the modification, as measured at the date of modification.
Where an equity-settled award is cancelled, it is treated as if it had vested on the date of
cancellation, and any expense not yet recognised for the award is recognised immediately.
However, if a new award is substituted for the cancelled award, and designated as a replacement
award on the date that it is granted, the cancelled and new award are treated as if they were a
modification of the original award, as described in the previous paragraph.
The dilutive effect, if any, of outstanding options is reflected as additional share dilution in the
computation of earnings per share.
49
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2008
(p) Trade and other receivables
CURRENT
All trade debtors are recognised at the amounts receivable as they are due for settlement no more
than 30 days from the date of recognition.
Collectability of trade debtors is reviewed on an ongoing basis. Debts which are known to be
uncollectible are written off. A provision for doubtful debts is raised when some doubt as to
collection exists and in any event when the debt is more than 60 days overdue.
(p) Trade and other receivables (continued)
NON-CURRENT
All debtors that are not expected to be received within 12 months of reporting date are included in
non-current receivables.
Collectability of non-current receivables is reviewed on an ongoing basis. Debts which are known to
be uncollectible are written off. A provision for doubtful debts is raised when some doubt as to
collection exists.
(q) Trade and other creditors
These amounts represent liabilities for goods and services provided to the consolidated entity prior to
the end of the financial year and which are unpaid. The amounts are unsecured and are usually paid
within 30 days of recognition.
(r) Operating Leases
Operating lease payments are charged to the Income Statement in the periods in which they are
incurred, as this represents the pattern of benefits derived from the leased assets.
(s) Significant accounting judgements, estimates and assumptions
Significant accounting judgements
In the process of applying the Group’s accounting policies, management has made the following
judgements, apart from those involving estimations, which have the most significant effect on the
amounts recognised in the financial statements:
Exploration and evaluation assets
The Group’s accounting policy for exploration and evaluation expenditure is set out above. The
application of this policy necessarily requires management to make certain estimates and
assumptions as to future events and circumstances, in particular, the assessment of whether
economic quantities of reserves are found. Any such estimates and assumptions may change as
new information becomes available.
Significant accounting estimates and assumptions
The carrying amounts of certain assets and liabilities are often determined based on estimates and
assumptions of future events. The key estimates and assumptions that have a significant risk of
causing a material adjustment to the carrying amounts of certain assets and liabilities within the next
annual reporting period are:
Recovery of deferred assets
Deferred tax assets are recognised for deductible temporary differences when management
considers that it is probable that future taxable profits will be available to utilise those temporary
differences.
Share-based payment transactions
The Group measures the cost of equity-settled transactions with employees by reference to the fair
value of the equity instruments at the date at which they are granted. The Group measures the cost
of cash-settled share-based payments at fair value at the grant date using the Black and Scholes
model taking into account the terms and conditions upon which the instruments were granted.
50
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2008
(t) Comparative Figures
When required by Accounting Standards, comparative figures have been adjusted to conform to
changes in presentation for the current financial year.
2. RISK MANAGEMENT
(a) Interest rate risk
The Consolidated Entity and the Company’s exposure to interest rate risk, is the risk that a financial instrument’s
value will fluctuate as a result of changes in market interest rates and the effective weighted average interest
rate on classes of financial assets and liabilities. The Consolidated Entity and the Company do not have a
major exposure in this area as the interest rate earned on deposited funds does not vary greatly from month to
month.
Consolidated Entity
2008
Fixed interest rate maturing in
Floating
Interest
Rate
$
1 year or
less
$
1 to 5
years
$
More
than 5
years
$
Non
interest
bearing
$
Total carrying
amount at
balance sheet
$
Interest
rate on
deposits
at 30 Jun%
Financial Assets
Cash and cash
equivalents 407,241 - - - -
407,241 3.85
Trade and other
receivables - - - - 118,741
118,741
-
Other financial
assets - - - - 41,333
41,333 -
Deposits - 157,832 - - - 157,832 7.10
Total Financial
Assets 407,241 157,832 - - 160,074
725,147
Financial
Liabilities
Trade creditors - - - - 179,832 179,832 -
Other creditors
and accruals - - - - 48,329
48,329 -
Restricted cash 23,864 - - - - 23,864 3.85
Total Financial
Liabilities 23,864 - - 228,161
252,025
51
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2008
2. RISK MANAGEMENT (CONTINUED)
Consolidated Entity
2007
Fixed interest rate maturing in
Floating
Interest
Rate
$
1 year or
less
$
1 to 5
years
$
More
than 5
years
$
Non
interest
bearing
$
Total carrying
amount as per
balance sheet
$
Interest
rate on
deposits
at 30 Jun%
Financial Assets
Cash and cash
equivalents 1,451,496 - - - -
1,451,496 4.35
Trade and other
receivables - - - - 131,302
131,302
-
Other financial
assets - - - - 1,333
1,333 -
Deposits - - - - 63,725 63,725 -
Total Financial
Assets 1,451,496 - - - 196,360
1,647,856
Financial
Liabilities
Trade creditors - - - - 175,803 175,803 -
Other creditors
and accruals - - - - 54,081
54,081 -
Restricted cash 24,242 - - - - 24,242 4.35
Total Financial
Liabilities 24,242 - - 229,884
254,126
Parent
2008
Fixed interest rate maturing in
Floating
Interest
Rate
$
1 year or
less
$
1 to 5
years
More
than 5
years
$
Non
interest
bearing
$
Total carrying
amount as per
balance sheet
$
Interest
Rate on
deposits
at 30 Jun%
Financial Assets
Cash and cash
equivalents 185,283 - - - -
185,283 3.85
Trade and other
receivables - - - - 27,961
27,961
-
Other financial
assets - - - - 41,333
41,333 -
Deposits - 49,450 - - - 49,450 7.10
Total Financial
Assets 185,283 49,450 - - 69,294 304,027
Financial Liabilities
Trade creditors - - - - 28,267 28,267 -
Other creditors and
accruals - - - - 15,000
15,000 -
Restricted cash 23,864 - - - - 23,864 3.85
Total Financial
Liabilities 23,864 - - - 43,267 67,131
52
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2008
2. RISK MANAGEMENT (CONTINUED)
Parent
2007
Fixed interest rate maturing in
Floating
Interest
Rate
$
1 year or
less
$
1 to 5
years
$
More
than 5
years
$
Non
interest
bearing
$
Total carrying
amount as per
balance sheet
$
Interest
Rate on
deposits
at 30 Jun%
Financial Assets
Cash and cash
equivalents 1,040,620 - - - -
1,040,620 4.35
Trade and other
receivables - - - - 24,199
24,199
-
Other financial
assets - - - - 1,333
1,333 -
Deposits - - - - - - -
Total Financial
Assets 1,040,620 - - - 25,532
1,066,152
Financial
Liabilities
Trade creditors - - - - 84,322 84,322 -
Other creditors
and accruals - - - - 15,000
15,000 -
Restricted cash 24,242 - - - - 24,242 4.35
Total Financial
Liabilities 24,242 - - 99,322
123,564
(b) Credit risk exposures
The Consolidated Entity and the Company has no significant concentrations of credit risk. The maximum
exposure to credit risk at balance date is the carrying amount (net of provision of doubtful debts) of those assets
as disclosed in the balance sheet and note 22.
As the Consolidated Entity and Company does not presently have any debtors arising from sales, lending,
significant stock levels or any other credit risk, a formal credit risk management policy is not maintained.
(d) Foreign currency risk management
The Consolidated Entity and the Company is exposed to fluctuations in foreign currencies arising from costs
incurred at overseas mineral exploration tenements. Overseas expenses are paid at the spot rate applicable on
the date the invoice is received. Please refer to Note 22 for further details.
Liquidity Risk
Liquidity risk is the risk that the Consolidated Entity and the Company will not be able to meet its financial
obligations as they fall due. The only financial obligation the Consolidated Entity and the Company have is
trade creditors and other payables. There are no contractual liabilities in place.
The company has not conducted a sensitivity analysis on credit or interest rate risk as the amounts are not
considered significant.
53
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2008
Consolidated Parent Entity
2008 2007 2008 2007
$ $ $ $
3. REVENUE
Revenue from outside the operating activities
Interest 23,406 70,526 23,406 70,526
Proceeds on sale of interest in Golden Valley
Joint venture 40,000 - 40,000 -
Revenue from ordinary activities 63,406 70,526 63,406 70,526
3(a) LOSS BEFORE INCOME TAX
Net Expenses
The loss before income tax includes the following expenses:
(i) Expenses:
Exploration expenditure written off 2,178,983 2,407,217 127,421 569,875
Depreciation 18,217 5,828 15,010 5,816
Rental expenses 44,644 38,779 44,644 38,779
Provision for doubtful debts - - 1,237,588 1,216,865
Plant and equipment written off 4,716 - 4,716 -
(i) Numerical reconciliation of income tax
expense to prima facie tax payable:
Loss from ordinary activities before income
tax expense (3,907,994) (4,114,065) (2,882,986) (3,256,702)
3(b) INCOME TAX
Prima facie tax benefit on loss from ordinary
activities: (1,172,398) (1,234,219) (864,896) (977,010)
Tax effect of amounts which are not deductible
(taxable) in calculating taxable income
Unrealised foreign exchange losses (gains) 265,043 274,295 217,242 214,434
Entertainment 4,822 4,730 4,822 4,730
Equity based remuneration 57,375 19,764 57,375 19,764
Legal 915 12,671 915 12,671
Donations - 264 - 68
(844,243) (922,495) (584,542) (725,343)
Movement in unrecognised temporary difference 621,270 706,576 376,348 522,374
Tax effect of current year tax losses for which
no deferred tax asset has been recognised 222,973 215,919 208,194 202,969
Income tax expense - - - -
54
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2008
Consolidated Parent Entity
2008 2007 2008 2007
$ $ $ $
3(b) INCOME TAX (CONTINUED)
(ii) Unrecognised temporary differences
Deferred Tax Assets (at 30%)
Carried forward revenue tax losses 3,900,659 3,687,815 3,208,454 3,000,260
Carried forward capital tax losses 823,879 823,879 703,957 703,957
Carried forward foreign tax losses 1,695,413 1,493,904 1,313,599 1,276,180
Provisions 116,993 503,495 14,033 7,034
Blackhole expenditure 93,243 112,113 93,243 112,113
Prepayments 3,335 - 3,335 -
6,633,522 6,621,206 5,336,621 5,099,544
This benefit for tax losses will only be obtained if:
(i) the consolidated entity derives future assessable income of a nature and of an amount sufficient to
enable the benefit from the deductions for the losses to be realised, or
(ii) the losses are transferred to an eligible entity in the consolidated entity, and
(iii) the consolidated entity continues to comply with the conditions for deductibility imposed by tax
legislation, and
(iv) no changes in tax legislation adversely affect the consolidated entity in realising the benefit from
the deductions for the losses.
4. TRADE AND OTHER RECEIVABLES
CURRENT
Other debtors and prepayments 147,625 131,302 39,079 24,199
Other debtors
These amounts generally arise from transactions outside the usual operating activities of the consolidated
entity and are non-interest bearing. The other debtors do not contain any impaired receivables.
NON-CURRENT
Other debtors 280,997 281,103 - -
Less provision for doubtful debts (280,997) (281,103) - -
Loans to controlled entities - - 11,768,845 10,531,257
Less provision for doubtful debts - - (11,768,845) (10,531,257)
- - - -
Other non-current debtors includes $247,880 (2007 - $247,880) receivable from a related party B
Vijaykumar Chhattisgarh Exploration Private Limited which has been fully provided for.
Further information relating to receivables from related parties is set out in Note 16.
55
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2008
Consolidated Parent Entity
2008 2007 2008 2007
$ $ $ $
5. OTHER FINANCIAL ASSETS
CURRENT
Investments listed on a prescribed stock exchange 41,333 1,333 41,333 1,333
During 2008 Oropa Limited sold its interest in the Golden Valley Joint Venture to Southern Cross Goldfields
Ltd in exchange for 200,000 shares and 1,000,000 options exercisable at 20 cents in the company
Southern Cross Goldfields Limited.
The shares were issued at a deemed value of 20 cents each ($40,000) and the options only vest if
Southern Cross Goldfields discover a minimum of 250,000 ounces of gold or 5,000 tonnes of nickel in the
situ in the Golden Valley Tenements as defined in the “Sale Agreement – Golden Valley Joint Venture
Interest” between Southern Cross Goldfields Ltd and Oropa Ltd.
NON-CURRENT
Investments in controlled entities (Note 18)
at cost - - 2,344,382 2,344,382
Less provision for diminution - - (2,344,382) (2,344,382)
Investments in other entities, at cost 1,834,510 1,834,510 - -
Less provision for diminution (1,834,510) (1,834,510) - -
- - - -
Shares in controlled entities
The carrying value of the investments in controlled entities is dependent upon the successful
development and exploitation of the controlled entities’ tenements, or alternatively the sale of those
tenements for at least carrying value.
Investments in other entities
Investments in other entities include the following:
• 9.9% shareholding in CEPO Systems Pty Limited, a company involved in the development of ecommerce
business to business software. This investment has been fully provided for.
• 10% interest in B Vijaykumar Technical Services Pvt Limited, a company involved in diamond
exploration in India, with an option to purchase a further 10% interest. As Oropa Indian
Resources Pty Ltd, Oropa Limited’s wholly owned subsidiary, no longer has significant
influence over B Vijaykumar Technical Services Pvt Limited, the investment was transferred to
other investments from investment in associates in a prior year. This investment has been fully
provided for.
56
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2008
Consolidated Parent Entity
2008 2007 2008 2007
$ $ $ $
6. PROPERTY, PLANT AND EQUIPMENT
NON-CURRENT
Leasehold improvements, at cost 12,729 6,003 12,729 6,003
Less: accumulated amortisation (2,696) (831) (2,696) (831)
10,033 5,172 10,033 5,172
Plant and equipment, at cost 58,455 77,527 13,079 27,851
Less: accumulated depreciation (37,109) (43,350) (4,545) (11,327)
21,346 34,177 8,534 16,524
Motor vehicles, at cost 24,947 10,148 - -
Less: accumulated depreciation (8,124) (3,553) - -
16,823 6,595 - -
Office equipment, at cost 135,221 139,004 84,991 88,584
Less: accumulated depreciation (85,290) (92,068) (47,777) (54,845)
49,931 46,936 37,214 33,739
Total property, plant and equipment 98,133 92,880 55,781 55,435
Reconciliations
Reconciliations of the carrying amounts of each class of property, plant and equipment at the beginning
and end of the current financial year are set out below:
2008
Consolidated
Leasehold
Improvements
$
Plant &
Equipment
$
Motor
Vehicles
$
Office
Equipment
$
Total
$
Carrying amount at
1 July 2007
5,172 34,177 6,595 46,936 92,880
Effect of foreign currency
translation
- (2,108) (775) (2,277) (5,160)
Additions 6,726 4,744 15,992 20,125 47,587
Write-offs & reclassification - (4,010) - (1,020) (5,030)
Depreciation expense (1,865) (11,457) (4,989) (13,833) (32,144)
Carrying amount at
30 June 2008
10,033
21,346
16,823
49,931
98,133
57
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2008
6. PROPERTY, PLANT AND EQUIPMENT (CONTINUED)
Reconciliations
Parent
Leasehold
Improvements
$
Plant &
Equipment
$
Office
Equipment
$
Total
$
Carrying amount at
1 July 2007
5,172
16,524 33,739 55,435
Additions 6,726 13,660 20,386
Write-offs & reclassification - (4,010) (1,020) (5,030)
Depreciation expense (1,865) (3,980) (9,165) (15,010)
Carrying amount at
30 June 2008
10,033
8,534
37,214
55,781
2007
Consolidated Leasehold
Improvements
$
Plant &
Equipment
$
Motor
Vehicles
$
Office
Equipment
$
Total
$
Carrying amount at
1 July 2006
5,323
30,488
9,898
42,240
87,949
Effect of foreign currency
translation
- (2,955) (1,274) (2,961) (7,190)
Additions - 15,536 - 20,102 35,638
Disposals and write-offs - - - (2,410) (2,410)
Depreciation expense (151) (8,892) (2,029) (10,035) (21,107)
Carrying amount at
30 June 2007
5,172 34,177 6,595 46,936
92,880
Parent
Leasehold
Improvements
$
Plant &
Equipment
$
Office
Equipment
$
Total
$
Carrying amount at
1 July 2006
5,323
5,370
26,743
37,436
Additions - 12,150 14,075 26,225
Disposals and write-offs - - (2,410) (2,410)
Depreciation expense (151) (996) (4,669) (5,816)
Carrying amount at
30 June 2007
5,172 16,524 33,739 55,435
58
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2008
Consolidated Parent Entity
2008 2007 2008 2007
$ $ $ $
7. OTHER ASSETS
NON-CURRENT
Mining exploration and evaluation
expenditure
Expenditure incurred during the year 2,178,983 2,407,217 127,421 569,875
Expenditure written off during the year (2,178,983) (2,407,217) (127,421) (569,875)
Costs carried forward - - - -
Deposits 157,832 63,725 49,450 -
157,832 63,725 49,450 -
For those areas of interest which are still in the exploration phase, the ultimate recoupment of the stated
costs is dependent upon the successful development and commercial exploitation, or alternatively, sale
of the respective areas of interest.
Some of the company’s exploration properties are subject to claim(s) under native title. As a result,
exploration properties or areas within the tenements may be subject to exploration and/or mining
restrictions.
Deposits
Deposits of $157,832 include a building rental deposit of USD $4,293 (2007: USD 4,109), a mineral
exploration deposit of USD $100,000 (2007: USD 50,000), a term deposit securing a bank guarantee for
rent of $20,000 and a term deposit for $29,450 securing a Letter of Credit for PT Sorikmas Pty Ltd.
The mineral exploration deposit is to guarantee a minimum level of financial support for mineral
exploration by the Company. The cash component is deposited at a government bank appointed by the
Ministry of Energy and Mineral Resources. This deposit is refundable on the basis that the Company
meets certain performance conditions set out in the Contract of Work.
8. TRADE AND OTHER PAYABLES
CURRENT
Trade creditors 179,832 175,803 28,267 84,322
Other creditors 15,000 16,321 15,000 15,000
194,832 192,124 43,267 99,322
NON-CURRENT
Other creditors 33,329 37,760 - -
33,329 37,760 - -
Other creditors
This is an amount payable to PT Aberfoyle Indonesia.
59
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2008
Consolidated Parent Entity
2008 2007 2008 2007
$ $ $ $
9. PROVISIONS
CURRENT
Employee Entitlements 387,878 331,697 17,776 8,444
Taxation 6,437 - - -
394,315 331,697 17,776 8,444
NON CURRENT
Employee Entitlements- long service leave 14,000 - 14,000 -
Employee numbers Number Number
Average number of employees during the financial year 43 57 2 6
Parent Entity
2008 2007
$ $
_________ _________
10. CONTRIBUTED EQUITY
Issued Capital
Fully paid – Ordinary shares
184,451,912 (2007 – 145,349,328) 35,141,145 33,411,976
Shares to be issued 245,000 -
35,386,145 33,411,976
Shares to be issued of $245,000 represents share application money received in advance. This represents
shares of 4,454,545 at 5.5 cents, and is part of the $420,000 share placement for 7,636,362 shares, which is to
be issued and quoted on the ASX on 17 July 2008.
Movements in ordinary share capital of the company during the past 2 years were as follows:
Number $
of shares
01/07/2006 Opening balance 93,816,886 31,525,228
10/01/2007 Share issue 4,063 933
17/05/2007 Share issue 51,528,379 2,061,385
30/06/2007 Share issue costs - (175,570)
145,349,328 33,411,976
12/10/2007 Share issue 1 -
17/10/2007 Share issue 10,300,555 463,525
18/12/2007 Share issue 10,000,000 500,000
14/03/2008 Share issue 13,347,483 533,899
06/06/2008 Share issue 5,454,545 545,000
30/06/2008 Share issue costs - (68,255)
184,451,912 35,386,145
60
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2008
10. CONTRIBUTED EQUITY (CONTINUED)
Ordinary shares
Ordinary shares entitle the holder to participate in dividends and the proceeds on winding up of the
company in proportion to the number of and amounts paid on the shares held. On a show of hands every
holder of ordinary shares present at a meeting in person or by proxy, is entitled to one vote, and upon a
poll each share is entitled to one vote.
11. RESERVES AND ACCUMULATED LOSSES
Consolidated Parent Entity
2008 2007 2008 2007
$ $ $ $
(a) Option Premium Reserve
Balance at the beginning of the financial year 632,019 486,171 632,019 486,171
Options issued during the year 191,257 145,848 191,257 145,848
Balance at the end of the financial year 823,276 632,019 823,276 632,019
The Option Premium Reserve is used to record the value of options issued during the year under the Black
and Scholes method. The balance standing to the credit of the reserve will be transferred to share capital
as options are exercised or to accumulated losses as options expired unexercised. The option premium
reserve may be subject to capital gains tax if the options are not exercised.
Options
At 30 June 2008, the company had the following options:
• 500,000 unlisted options to subscribe for fully paid ordinary shares exercisable at 12 cents at any
time on or before the expiry date of 20 October 2008.
• 2,700,000 unlisted employee options to subscribe for fully paid ordinary shares exercisable at 13
cents at any time on or before the expiry date of 31 December 2009.
• 12,791,440 options to subscribe for fully paid ordinary shares exercisable at 20 cents at any time
on or before the expiry date of 31 January 2010.
• 8,500,000 unlisted director options to subscribe for fully paid ordinary shares exercisable at 15
cents at any time on or before the expiry date of 31 May 2013.
All options, except for unlisted options, are quoted on the Australian Securities Exchange Limited.
The following options were issued during the year:
• 8,500,000 unlisted director options to subscribe for fully paid ordinary shares exercisable at 15
cents at any time on or before the expiry date of 31 May 2013.
The following options lapsed during the year:
• 13,280,376 options to subscribe for fully paid ordinary shares exercisable at 50 cents at any time
on or before the expiry date of 31 December 2007.
61
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2008
11. RESERVES AND ACCUMULATED LOSSES (CONTINUED)
Consolidated Parent Entity
2008 2007 2008 2007
$ $ $ $
(b) Foreign Currency Reserves
Balance at the beginning of the
financial year 852,091 (7,168) - -
Movement for the year 779,479 859,259 - -
Balance at the end of the financial year 1,631,570 852,091 - -
(c) Accumulated Losses
Balance at the beginning of the
financial year (33,839,624) (29,725,559) (33,054,416) (29,797,714)
Net losses attributable to members of
Oropa Limited (3,907,994) (4,114,065) (2,882,986) (3,256,702)
Balance at the end of the
financial year (37,747,618) (33,839,624) (35,937,402) (33,054,416)
12. SHARE BASED PAYMENTS PLAN
Share-based payment plan
The following table illustrates the number (No.) and weighted average exercise price (WAEP) of and
movements in share options issued during the year:
2008 2008 2007 2007
No. WAEP No. WAEP
Cents Cents
Outstanding at the beginning of the year 3,200,000 13.00 3,200,000 13.00
Granted during the year 8,500,000 15.00 - -
Forfeited during the year - - - -
Exercised during the year - - - -
Expired during the year - - - -
Outstanding at the end of the year 11,700,000 14.00 3,200,000 13.00
The outstanding balance as at 30 June 2008 is represented by:
• 500,000 unlisted options to subscribe for fully paid ordinary shares exercisable at 12 cents at any
time on or before the expiry date of 20 October 2008.
• 2,700,000 unlisted employee options to subscribe for fully paid ordinary shares exercisable at 13
cents at any time on or before the expiry date of 31 December 2009.
• 8,500,000 unlisted director options to subscribe for fully paid ordinary shares exercisable at 15
cents at any time on or before the expiry date of 31 May 2013.
62
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2008
12. SHARE BASED PAYMENTS PLAN (CONTINUED)
During the year, the company granted a total of 8,500,000 unlisted options to directors at an exercise price of 15
cents each and an expiry date of 31 May 2013. The options were fair valued at 2.25 cents per option, and vest
on 15 May 2008.
The fair value of the options has been calculated using the Black Scholes option pricing model as follows:
Weighted average exercise price 15 cents
Underlying share price 5 cents
Days to expiration 1,845
Expected volatility 75%
Risk free interest rate 7.25%
Historical volatility has been the basis of determining the basis of expected share price volatility and it is
assumed that this is indicative of future trends, which may not eventuate.
The life of options is based on the historical exercise patterns, which may not eventuate in the future.
13. KEY MANAGEMENT PERSONNEL DISCLOSURE
Names and Positions held of economic and parent entity key management personnel in office at any time
during the financial year are:
Key Management Personnel
Brian J Hurley Chairman
Philip C J Christie CEO
Roderick G Murchison Non Executive Director
Bruce Tomich Non Executive Director
Dean Pluckhahn Senior Geologist
There are no executives (other than directors) with authority for strategic decision and management.
(a) Compensation for Key Management Personnel
Consolidated Parent Entity
2008 2007 2008 2007
$ $ $ $
Short-term employee benefits 462,037 441,420 394,537 441,420
Non monetary benefit 13,898 14,375 13,898 14,375
Post employment benefits 11,700 10,800 11,700 10,800
Other long-term benefits - - - -
Termination benefits - - - -
Share based payment 191,257 12,200 191,257 12,200
678,892 478,795 611,392 478,795
(b) Option holdings of key management personnel (consolidated)
The number of options over ordinary shares in the company held during the financial year by each director
of Oropa Ltd, including their personally-related entities, are set out below.
63
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2008
13. KEY MANAGEMENT PERSONNEL DISCLOSURE (CONTINUED)
Vested at 30 June 2008
30 June 2008 Balance
at
beginning
of period
1 Jul 07
Granted as
remuneration
Opt
ion
s
exe
rcis
ed
Net
change
other
Balance
at end of
period
30 Jun
08
Total Exercisable Not
exercis
able
Directors
PCJ Christie
124,442
3,000,000
-
(99,240)
3,025,202
3,025,202
3,025,202
-
BJ Hurley 26,800 2,500,000 - (26,800) 2,500,000 2,500,000 2,500,000 -
RG Murchison 217,408 1,500,000 - (116,000) 1,601,408 1,601,408 1,601,408 -
BNV Tomich - 1,500,000 - - 1,500,000 1,500,000 1,500,000 -
D Pluckhahn 500,000 - - - 500,000 500,000 500,000 -
Vested at 30 June 2007
30 June
2007
Balance
at
beginning
of period
1 Jul 06
Granted as
remunerati
on
Options
exercised
Net
change
other
Balance
at end of
period
30 Jun
07
Total Exercisable Not
exercis
able
Directors
PCJ
Christie
124,442
- - - -
124,442
124,442
-
BJ Hurley 26,800 - - - - 26,800 26,800 -
RG
Murchison
201,408 - - 16,000 - 217,408 217,408 -
BNV
Tomich
- - - - - - - -
Dean
Pluckhahn
- 500,000 - 500,000 500,000 500,000 -
(c) Shareholdings of key management personnel (consolidated)
The number of shares in the company held by each director of Oropa Ltd, including their personally-related
entities, are set out below:
Balance 1 Jul 07 Granted as
remuneration
On exercise of
options
Net change
other
Balance 30
Jun 08
30 June
2008
Ord Pref Ord Pref Ord Pref Ord Pref Ord Pref
Directors
PCJ Christie
574,852 - - - - - - - 574,852 -
BJ Hurley 741,092 - - - - - - - 741,092 -
RG Murchison 749,852 - - - - - - - 749,852 -
BNV Tomich 139,000 - - - - - 100,000 - 239,000 -
D Pluckhahn - - - - - - - - - -
64
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2008
13. KEY MANAGEMENT PERSONNEL DISCLOSURE (CONTINUED)
Balance 1 Jul 06 Granted as
remuneration
On exercise of
options
Net change
other
Balance 30 Jun
07
30 June
2007
Ord Pref Ord Pref Ord Pref Ord Pref Ord Pref
Directors
PCJ Christie
410,608 - - - - - 164,244 - 574,852 -
BJ Hurley 529,351 - - - - 211,741 - 741,092 -
RG Murchison 709,852 - - - - - 40,000 - 749,852 -
BNV Tomich - - - - - - 139,000 139,000 -
D Pluckhahn - - - - - - - - - -
14. REMUNERATION OF AUDITORS
Remuneration for audit or review of the financial
reports of the parent entity or any entity in the
consolidated entity:
Stantons International 29,612 25,874 29,612 25,874
Other 16,700 11,626 - -
46,312 37,500 29,612 25,874
Remuneration for other services - - - -
15. CONTINGENT ASSETS AND LIABILITIES
The only contingent asset the parent and consolidated entity have as at 30 June 2008 is 1,000,000 options
exercisable at 20 cents in the company Southern Cross Goldfields Ltd. These options only vest upon the
company discovering a minimum of 250,000 ounces of gold or 5,000 tonnes of nickel in the situ in the
Golden Valley Tenements.
The only contingent liability the parent and consolidated entity have as at 30 June 2008 is a termination fee
payable of up to $425,000 if Director, Philip Christie’s (trading as Yellowmoon Gold Mines Pty Ltd)
consultancy contract is terminated prior to the expiry date of 10 January 2011.
16. RELATED PARTIES
Directors and specified executives
Disclosures relating to directors and specified executives are set out in the director’s report.
Wholly owned Group
The wholly-owned group consists of Oropa Limited and its wholly-owned subsidiaries Inland Goldmines
Pty Limited, Excelsior Resources Pty Limited, Oropa Technologies Pty Limited, Oropa Indian Resources
Pty Limited and Oropa Exploration Pty Limited.
Oropa owns 100% of the shares in Aberfoyle Pungkut Investments Pte Ltd (API). API holds a 75%
interest in PT Sorikmas Mining, with the Indonesian Government mining company, P.T. Aneka Tambang
holding the remaining 25%.
65
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2008
16. RELATED PARTIES (CONTINUED)
Transactions between Oropa Limited and related parties in the wholly-owned group during the year ended
30 June 2008 consisted of loans on an interest free basis with no fixed term and no specific repayment
arrangements. Oropa Limited made an additional provision for doubtful debts of $1,237,588 in its accounts
for the year ended 30 June 2008 (2007 - $1,216,865) in relation to the loans made to its subsidiaries. No
other amounts were included in the determination of operating loss before tax of the parent entity that
resulted from transactions with related parties in the group.
Other related parties
Aggregate amounts receivable from related parties in the wholly owned group at balance date were as
follows:
Parent Entity
2008 2007
$ $
Non-current receivables (note 4) 11,768,845 10,531,257
Provision for doubtful debts (note 4) (11,768,845) 10,531,257)
- -
An amount of $247,880 (2007 - $247,880) is still outstanding from an advance to B Vijaykumar
Chhattisgarh Exploration Private Limited, being a subsidiary of a company that the consolidated entity has
an investment in. This amount was used to fund diamond exploration activities in India. The loan is interest
free. The loan has been fully provided for in the accounts.
17. EXPENDITURE COMMITMENTS
Exploration Commitments
In order to maintain current rights of tenure to exploration tenements, the company and consolidated entity
were previously required to outlay lease rentals and to meet the minimum expenditure requirements of the
Mines Departments.
Consolidated Parent Entity
2008 2007 2008 2007
$ $ $ $
Not later than one year 618,205 455,452 - -
Later than one year, but not later than 2 years 1,878,977 1,398,172 - -
2,497,182 1,853,624 - -
PT Sorikmas Mining Commitments
Under the Contract of Work (CoW), the Company was required to spend certain minimum expenditures in
respect of the contract area for the General Survey Period and Exploration Period as follows:
US$ / km2
General survey period 100
Exploration period 1,100
As at 30 June 2008, PT Sorikmas Mining had fulfilled its expenditure commitments in respect of the
General Survey Period and Exploration Period.
67
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2008
18. INVESTMENTS IN CONTROLLED ENTITIES
Controlled Entities: Class of Shares Cost of Parent Equity Holding
Entity’s Investment
2008 2007 2008 2007
$ $
Inland Goldmines Pty Limited
(Incorporated in Australia) Ordinary 583,942 583,942 100% 100%
Excelsior Resources Pty Limited
(Incorporated in Australia) Ordinary 1,062,900 1,062,900 100% 100%
Oropa Technologies Pty Limited
(Incorporated in Australia) Ordinary 1 1 100% 100%
Oropa Indian Resources Pty Limited
(Incorporated in Australia) Ordinary 1 1 100% 100%
Oropa Exploration Pty Limited
(Incorporated in Australia) Ordinary 1 1 100% 100%
Aberfoyle Pungkut Investments Pte Ltd(a)
(Incorporated in Singapore) Ordinary 697,537 697,537 100% 100%
PT Sorikmas Mining (b) Ordinary
(Incorporated in Indonesia) - - 75% 75%
2,344,382 2,344,382
(a) When Oropa Limited issued 9,259,259 shares as consideration for exercising the option to acquire
100% of the shares in Aberfoyle Pungkut Indonesia Pte Ltd, it was assigned the vendors receivables
from Aberfoyle Pungkut Investments Pte Ltd and PT Sorikmas Mining. This reduced the cost of the
investment in Aberfoyle Pungkut Investments Pte Ltd.
(b) Aberfoyle Pungkut Investments Pte Ltd holds a 75% interest in PT Sorikmas Mining, with an
Indonesian Government mining company PT Aneka Tambang holding the remaining 25%. The outside
equity interest in PT Sorikmas Mining equates to 25% of the issued capital of USD $300,000, being
AUD $98,451 as at 30 June 2008 (2007: AUD $98,451).
19. NOTES TO THE CASH FLOW STATEMENT
(a) Reconciliation of Cash and Cash Equivalents
For the purposes of the Statement of Cash Flows cash includes cash and cash equivalents on hand
and at call deposits with banks, and investments in money market instruments net of outstanding
bank overdrafts. Cash and cash equivalents at the end of the financial year as shown in the
Statements of Cash Flows is reconciled to the related items in the Balance Sheet as follows:
Consolidated Parent Entity
2008 2007 2008 2007
$ $ $ $
Cash at bank 383,377 1,427,254 161,419 1,016,378
Restricted Cash at Bank (not available for use) 23,864 24,242 23,864 24,242
407,241 1,451,496 185,283 1,040,620
Restricted Cash at Bank relates to monies held in trust resulting from the buy-back of shares in 2003.
68
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2008
19. NOTES TO THE CASH FLOW STATEMENT (CONTINUED)
(b) Reconciliation of operating loss after income tax
to net cash flow from operating activities
Consolidated Parent Entity
2008 2007 2008 2007
$ $ $ $
Operating (loss) after income tax (3,907,994) (4,114,065) (2,882,986) (3,256,701)
Non Cash Items
Depreciation 18,217 5,828 15,010 5,816
Provision for doubtful debts - - 1,237,588 1,216,865
Exploration costs written off 2,178,983 2,407,217 127,421 569,875
Plant and equipment written off 4,716 2,734 4,716 2,734
Share based payments 191,257 81,891 191,257 81,891
Foreign exchange loss 883,477 914,317 724,139 714,779
Proceeds on sale of interest in Golden Valley JV (40,000) - (40,000) -
Other 318 - 318 -
Change in operating assets and liabilities, net
of effects from purchase of controlled entity
(Increase) / decrease in receivables (16,323) 57,160 (14,880) 57,711
Increase / (decrease) in payables 2,707 35,463 (56,056) 36,983
Increase / (decrease) in provisions 76,616 1,678 23,326 1,678
Effect of foreign exchange rates (107,240) - - -
Net cash (outflow) from
operating activities (715,266) (607,777) (670,147) (568,369)
Consolidated
2008 2007
20. EARNINGS PER SHARE cents cents
(a) Basic and diluted loss per share (0.02) (0.04)
(b) Weighted average number of shares
outstanding during the year used in
the calculation of basic earnings per
share 162,308,179 100,030,430
As disclosed in Note 11 the company has on issue 12,791,440 listed options to subscribe for fully
paid ordinary shares exercisable at 20 cents at any time on or before the expiry date 31 January
2010. As the exercise price of these options at balance date was greater than the market price of the
shares, it is considered the options are unlikely to be exercised and consequently have not been
considered dilutive.
None of the options have been included in the determination of basic earnings per share. Details
relating to options are set out in Note 11(a).
Reconciliation of earnings used in calculating basic earnings per share
Consolidated
2008 2007
$ $
Net Loss (3,907,994) (4,114,065)
69
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2008
21. JOINT VENTURES
The consolidated entity has interests in the following unincorporated exploration joint ventures:
Interest Interest
Joint Venture Principal Activities 2008 2007
___________________________________________________________________________
Company:
Oropa Limited
Mt Keith Mineral Exploration 2% Royalty 2% Royalty
*The Golden Valley joint venture project was sold to Southern Cross Goldfields Limited in exchange,
for 200,000 shares and 1,000,000 20 cent options in Southern Cross Goldfields Limited on 6 March
2008.
Controlled Entities:
Excelsior Resources Pty Limited
Mulgabbie Mineral Exploration 2% Royalty 95%
Aberfoyle Pungkut Investments Pte Ltd
Pungkut Mineral Exploration 75% 75%
(Earning) (Earning)
___________________________________________________________________________
At balance date there was no exploration and evaluation expenditure in respect of areas of interest
subject to joint ventures included in other non-current assets of the consolidated entity and company.
For details of capital expenditure commitments relating to joint ventures, refer to note 17.
22. FINANCIAL INSTRUMENTS
Net Fair Value of Financial Assets and Liabilities
The net fair value of financial assets and financial liabilities of the company approximates their
carrying value. The Group and the parent hold the following financial instruments:
CONSOLIDATED PARENT
2008 2007 2008 2007
Financial Assets $ $ $ $
Cash and cash equivalents 407,241 1,451,496 185,283 1,040,620
Trade and other receivables 118,741 131,302 27,961 24,199
Other financial assets 41,333 1,333 41,333 1,333
Security deposits 157,832 63,725 49,450 -
Total Financial Assets 725,147 1,647,856 304,027 1,066,152
Financial Liabilities
Trade and other payables 228,161 229,884 43,267 99,322
Restricted cash 23,864 24,242 23,864 24,242
Total Financial Liabilities 252,025 254,126 67,131 123,564
66
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2008
17. EXPENDITURE COMMITMENTS (CONTINUED)
Expenditure Commitments in Malawi
The Malawi Government has granted three EPLs to Oropa covering an area of 23,648km2. There is a
minimum expenditure commitment for the three EPLs over a three year period as follows:
Mzimba Chitunde Chinzani
Northwest Project Project Project
Year 1 US$303,500 US$83,000 US$207,300
Year 2 US$403,500 US$98,000 US$272,200
Year 3 US$507,000 US$178,000 US$346,100
The subsidiary Oropa Exploration Pty Ltd has ownership of the Malawi project. In 2007 the company did
not spend its year one commitment as detailed in the 2007 financial report.
Operating Leases
Commitments for minimum lease payments in relation to non cancellable operating leases are payable as
follows:
Consolidated Parent Entity
2008 2007 2008 2007
$ $ $ $
*Not later than one year 46,575 46,575 46,575 46,575
Later than one year, but not later than 5 years 46,575 93,150 46,575 93,150
93,150 139,725 93,150 139,725
*The company exercised an option to extend the lease from 1 July 2007 for a period of three years.
Other Commitments
As at 30 June 2008 the Group had a commitment of US $5,000 to pay to William Faulkner before 31 July
2008 for legal fees. This was paid on 28 July 2008.
As part of an employee option scheme 500,000 unlisted options exercisable at 13 cents prior to the expiry
date of 31 December 2008 will be issued after 12 months of completed service to employee Leonard
Mafurutu. Leonard Mafurutu commenced employment on 7 July 2008.
Capital Commitments
There were no outstanding capital commitments not provided for in the financial statements of the
company as at 30 June 2008 or 30 June 2007.
70
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2008
22. FINANCIAL INSTRUMENTS (CONTINUED)
Credit Risk
The Company’s maximum exposure to credit risk at the reporting date was as detailed below:
Consolidated Parent
2008 2007 2008 2007
Financial Assets $ $ $ $
Cash and cash equivalents 407,241 1,451,496 185,283 1,040,620
Trade and other receivables 118,741 131,302 27,961 24,199
Other financial assets 41,333 1,333 41,333 1,333
Security deposits 157,832 63,725 49,450 -
Total Financial Assets 725,147 1,647,856 304,027 1,066,152
Impairment Losses
No impairment loss was recognised in either 2007 or 2008 with regards to receivables.
The Company does not have any material credit risk exposure to any single debtor or
group of debtors under financial instruments entered by the economic entity.
Foreign currency risk management
The Consolidated Entity and Company undertake certain transactions denominated in
foreign currencies, hence exposures to exchange rate fluctuations arise. There is
currently no risk management policy in place to manage exchange rate fluctuations.
The carrying amount of the Consolidated Entity’s foreign currency denominated monetary
assets and monetary liabilities at the reporting date is as follows:
Liabilities Assets
2008
$
2007
$
2008
$
2007
$
Singaporean Dollars 506,312 398,690 466,063 617,174
Foreign Currency Sensitivity Analysis
The effect on the loss and equity as a result of a 10% increase and decrease in the
Australian Dollar against the Singaporean Dollar with all other variables remaining
constant is as follows:
Consolidated Parent
2008
$
2007
$
2008
$
2007
$
Singaporean (increase)
Loss 390,799 411,407 - -
Other Equity 399,799 411,407 - -
Singaporean (decrease)
Loss (390,799) (411,407) - -
Other Equity (390,799) (411,407) - -
As the Consolidated Entity does not earn revenue, an increase in the Australian dollar will
decrease the Consolidated Entity’s losses as fewer funds will be required to pay its
expenses. Consequently, if the Australian dollar decreases, more funds are required to pay
the Consolidated Entity’s expenses, resulting in a larger loss.
71
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2008
23. EVENTS OCCURRING AFTER REPORTING DATE
On 8 July 2008 the Company appointed Mr Misha Collins, a CFA as a Non-executive Director to the
Company's Board. Mr Collins is a metallurgist with extensive experience in financial markets. He has
spent the last 10 years as a financial analyst with BT Funds Management with responsibility for a
range of markets but he has focused on gold, gold equities and strategies. He now runs his own
investment and trading business. Mr Collins is currently based in Sydney, which will assist the
company in having a presence in Australia’s financial capital.
On 14 July 2008 there was a share placement of 7,636,362 ordinary fully paid shares at a price of 5.5
cents each which raised capital of $420,000.00. The placement was made to offshore and
sophisticated investors. The new shares will rank equally with other ordinary shares on issue.
On 8 August 2008 the Company released a Prospectus to re issue lapsed options of 13,280,376 to
existing option holders of the 31 December 2007 options which had an exercise price of 20 cents.
The offer closed on 22 August 2008 and the Company received 8,510,285 option applications. On 27
August the Company issued these options and capital of $17,020.57 was raised. The directors are
currently placing the shortfall at their discretion.
72
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2008
24. SEGMENT INFORMATION
Primary Reporting – geographical segments
The geographical segments of the consolidated entity are as follows:
2008 Australia Africa South East India Unallocated Consolidated
Asia
$ $ $ $ $ $
Other revenue - - - - 63,406 63,406
Segment results (769,572) (524,649) (1,666,871) (39,143) (907,759) (3,907,994)
Loss from ordinary activities before income tax (3,907,994)
Income tax expense -
Net loss (3,907,994)
Segment assets 371,530 14,571 466,063 - - 852,164
Segment liabilities 100,228 - 560,112 - - 660,340
Investments 41,333 - - - - 41,333
Acquisition of property, plant
and equipment 20,386 15,992 11,209 - - 47,587
Mineral exploration expenditure
written off 1,380 508,033 1,521,033 38,931 109,606 2,178,983
Depreciation expense 15,019 3,198 - - - 18,217
73
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2008
24. SEGMENT INFORMATION (CONTINUED)
2007
Australia South East India Unallocated Consolidated
Asia
$ $ $ $ $
Other revenue - - - 70,526 70,526
Segment results (459,676) (1,801,439) (83,143) (1,769,807) (4,114,065)
Loss from ordinary activities
before income tax (4,114,065)
Income tax expense -
Net loss (4,114,065)
Segment assets 1,123,562 617,174 - - 1,740,736
Segment liabilities 133,329 452,494 - - 585,823
Investments 1,333 - - - 1,333
Acquisition of property, plant
and equipment 26,225 9,413 - - 35,638
Mineral exploration expenditure
written off 398,984 1,747,944 82,930 177,359 2,407,217
Depreciation expense 5,816 - - 12 5,828
Notes to and forming part of the segment information
(a) Accounting policies
Segment information is prepared in conformity with the accounting policies of the entity as disclosed in note 1
and the segment reporting accounting standard AASB 114 Segment Reporting.
Segment revenues, expenses, assets and liabilities are those that are directly attributable to a segment and
the relevant portion that can be allocated to the segment on a reasonable basis. Segment assets include all
assets used by a segment and consist primarily of operating cash, receivables, property, plant and
equipment and goodwill and other intangible assets, net of related provisions. Whilst most of these assets
can be directly attributable to individual segments, the carrying amounts of certain assets used jointly by
segments are allocated based on reasonable estimates of usage. Segment liabilities consist primarily of
trade and other creditors and employee benefits. Segment assets and liabilities do not include income taxes.
Secondary Reporting – Business Segments
The consolidated entity operates predominantly in the mineral exploration industry. There are therefore no
business segments requiring disclosure.




78
ADDITIONAL SHAREHOLDER INFORMATION
The following additional information dated 27 August 2008 is provided in compliance with the requirements of
the Australian Securities Exchange Limited.
1 DISTRIBUTION OF LISTED ORDINARY SHARES AND OPTIONS
(a) Analysis of numbers of shareholders by size of holding.
Distribution No. of
shareholders
No. of Option
holders
(20 cents - ORPO
(Exp 31/01/11)
No. of Option
holders
(20 cents – ORPOA
Exp 31/01/10)
1-1000 451 13 15
1,001-5,000 954 8 12
5,001-10,000 324 9 5
10,001-100,000 500 8 20
100,001 and above 141 14 21
Total 2,370 52 73
(b) There were 1,761 shareholders holding less than a marketable parcel.
(c) The percentage of the total of the twenty largest holders of ordinary shares was 68.4839%
2 TWENTY LARGEST SHAREHOLDERS AND OPTION HOLDERS
Names No. of
shares
%
ANZ Nominees Limited 31,792,238 16.55%
Karel Abram Pty Ltd 21,700,000 11.30%
Anthony Edward Collins & Andrea Claudia
Collins 14,500,000 7.55%
Gemtwin Pty Ltd 11,600,000 6.04%
NEFCO Nominees Pty Ltd 8,757,929 4.56%
Ganesh International Limited 6,270,120 3.26%
Sinom (Hong Kong) Limited 5,454,545 2.84%
Waferbell Ltd 5,294,323 2.76%
National Nominees Limited 4,926,461 2.56%
Ron Lees & Associates Pty Ltd 4,216,000 2.19%
Macquarie Bank Limited 3,722,222 1.94%
HSBC Custody Nominees (Australia) Pty Ltd 2,751,960 1.43%
Barry Sydney Patterson 2,372,337 1.24%
Troyleigh Investments Pty ltd 1,272,727 0.66%
Roderick Edwin Jones 1,227,483 0.64%
Robert Gemelli 1,219,400 0.63%
Berne No 123 Nominees Pty Ltd 1,174,128 0.61%
Insight Capital Management Pty Limited 1,165,000 0.61%
Jindabyne Pty Ltd 1,064,274 0.55%
Margaret Ann Lees 1,058,170 0.55%
Total 131,539,317 68.48%
79
ADDITIONAL SHAREHOLDER INFORMATION
The names of the twenty largest listed option holders (20cents – ORPOA Exp 31/01/2010) are listed
below:
Names No. of
options
%
Goffacan Pty Ltd 2,567,292 20.07%
Value Wise Investments Pty Ltd 1,670,427 13.06%
Ganesh International Limited 1,350,000 10.55%
Merimont Nominees Pty Ltd 1,000,000 7.82%
Rosanne Heather Hunter 700,000 5.47%
Siew Kiew Law 600,000 4.69%
Gemelli Holdings Pty Ltd 453,000 3.54%
Waferbell Ltd 446,500 3.49%
Georg Luzukic 420,000 3.28%
Frank Joseph Nigro 400,000 3.13%
Philip John Mander 360,443 2.82%
D & N Tsoutsoulis A/c 300,000 2.35%
Zipparo Holdings Pty Ltd 300,000 2.35%
Buildstar Pty Ltd 250,000 1.95%
Berne No 123 Nominees Pty Ltd 221,000 1.73%
Michael Kipling 220,000 1.72%
Thomas Anthony McGuire 200,000 1.56%
Scaneast International Ltd 165,000 1.29%
Jacobus Konyn 150,000 1.17%
Roderick Gordon Murchison 101,408 0.79%
Total 11,875,070 92.84%
The names of the twenty largest listed option holders (20cents - ORPO) Expiring 31/01/2011 are listed
below:
Names No. of
options
%
Forza Family Pty Ltd 2,809,497 33.01
Shane Anthony Heywood 1,000,000 11.75
Ron Lees & Assoc Pty Ltd 748,073 8.79
Berne No 132 Nominees Pty Ltd 628,311 7.38
George Lazukic 548,000 6.44
Jomot Pty Ltd 521,000 6.12
Frank Joseph Nigro 500,000 5.88
Ganesh International Limited 269,950 3.17
Michael and Linda Jolob 250,000 2.94
Maria Leotina Fernandes 238,220 2.8
Tina Margaret Gubbings 200,000 2.35
Kenneth Eason Higgs 150,000 1.76
National Nominees Limited 110,000 1.29
Peter Bicknell 102,400 1.2
Scaneast International Limited 74,000 0.87
Gerardo and Melina Zipparo 60,000 0.71
Christodoulos Biris 50,000 0.59
Bozena Pieda 50,000 0.59
Owen James Mulgrew 29,000 0.34
Darrell Grey 25,000 0.29
Total
8,363,451 98.27
80
ADDITIONAL SHAREHOLDER INFORMATION
3 SUBSTANTIAL SHAREHOLDERS
An extract from the company’s register of substantial shareholders is set out below:
Ordinary Shares Held
Name Number Percentage
________________________________________________________________________________
ANZ Nominees Ltd 31,792,238 16.55
Karel Abrams Pty Ltd 21,700,000 11.33
4 VOTING RIGHTS
The company's share capital is of one class with the following voting rights:
(a) Ordinary Shares
On a show of hands every shareholder present in person or by proxy shall have one vote and
upon a poll each share shall have one vote.
(b) Options
The company's options have no voting rights.
5 RESTRICTED SECURITIES
There are no ordinary shares on issue that have been classified by the Australian Securities Exchange
Limited, Perth as restricted securities.
6 STOCK EXCHANGE LISTING
Oropa Limited shares are listed on the Australian Securities Exchange Limited. The home exchange
is the Australian Securities Exchange (Perth) Limited.
81
SUMMARY OF TENEMENTS HELD BY COMPANY
FOR THE YEAR ENDED 30 JUNE 2008
Project Name Tenement Approval Expiry Area Equity
Date Date (ha) %
INDIA
Block D-7 22.01.00 4600km2 9(2)
INDONESIA
Pungkut 96PK0042 31.05.96 66,300 75
WESTERN AUSTRALIA
Mt. Keith
M53/490 11.06.04 10.06.25 582.00 0 (10)
M53/491 11.06.04 10.06.25 621.00 0 (10)
EXCELSIOR RESOURCES LTD
Mulgabbie P28/768 07.02.92 06.02.96 (1) 185.00 0(10)
P28/769 07.02.92 06.02.96 (1) 136.50 0(10)
MLA28/140 U/A 0(10)
MLA28/364 U/A 0(10)
PLA28/1078 U/A 0(10)
PLA28/1079 U/A 0(10)
PLA28/1080 U/A 0(10)
PLA28/1081 U/A 0(10)
PLA28/1082 U/A 0(10)
82
SUMMARY OF TENEMENTS HELD BY COMPANY
FOR THE YEAR ENDED 30 JUNE 2008
NOTES
(1) Prospecting Licences to remain valid until Mining Lease 28/140 is granted
(2) Option to increase interest to 18%
(3) Free carried interests
(4) Prospecting Licence to remain valid until Mining Lease 77/1090 is granted
(5) Prospecting Licence to remain valid until Mining Lease 77/1089 is granted
(6) Prospecting Licence to remain valid until Mining Lease 77/1064 is granted
(7) Prospecting Licence to remain valid until Mining Lease 77/1094 is granted
(8) Prospecting Licence to remain valid until Mining Lease 77/1103 is granted
(9) Prospecting Licence to remain valid until Mining Lease 77/1101 is granted
(10) 2% nett smelter royalty
* Graticular Blocks
U/A Under Application