annual report 2009

CHAIRMAN'S REVIEW

Dear Shareholder

The past year has been one of the most volatile periods in history for the financial markets. The World has
experienced the sharpest economic downturn since the Great Depression, whilst central banks and governments
have taken unprecedented action to stabilise the financial system and stimulate the economy.
It now appears such efforts have been largely successful and the global economy is moving slowly back onto a
path of growth. However, serious questions have been raised about the cost of various fiscal and monetary
programs, particularly in the US. Some prominent financial commentators have forecast a significant increase in
future inflation as a result of the substantial increase in new money (via bank reserves), created by the Federal
Reserve. Several foreign central banks have publicly raised concerns about the longer run impact of US fiscal
and monetary policy and have begun a process of diversification away from the US dollar for part of their foreign
currency reserves.

This back drop has been very positive for the gold price, which at the time of writing has sustainably exceeded
US$1,000 per ounce for the first time in history.
Oropa has not been immune to the challenges presented by financial market volatility and the credit crisis.
Raising capital through the course of 2008/9 proved very difficult. A minimum of capital was available in the
market for small explorers, and that which was offered, was done so at heavily discounted prices.
Despite the constraints presented by tight working capital, progress has continued at Oropa’s projects. Particular success was had at the Company’s key asset, the Pungkut Gold Project in Indonesia, with the completion of the Scoping Study demonstrating potential to build a profitable operation. Importantly, economics were determined to be favourable at a gold price of US$800/oz, with profitability improving significantly at a price of US$1,000/oz.

As a result of the favourable Scoping Study and positive gold price outlook, the Company has committed to
aggressively pursuing a Bankable Feasibility Study. This will require a significant ramp up in annual expenditure
levels when compared to that of recent years.
In order to meet increased working capital requirements, the Company has spent considerable time evaluating
potential investors and partners with the capacity to provide significant capital investment, but also with access to
specific technical and “in-country” expertise. Strong local expertise is of particular importance in Indonesia, where
both regional and national government is closely involved in the approval and permitting for new projects, thereby
making the process a particularly complex and sensitive exercise.

The Board has also considered the ability of parties to provide sustained funding for Pungkut. One of the
problems facing smaller explorers is that even when project economics are favourable, an inability to
demonstrably fund an operation creates an aura of scepticism around a company. Such scepticism makes it
more difficult to gain project approvals and tends to lead to a higher “uncertainty” discount in terms of the price
shares trade at in the market.

I’m pleased to report the Company has recently been successful in attracting a new investor and partner with
access to the combination of skills and capital we have been looking for. Mining Advisory Consultants Pte
Limited “MAC” and Oropa have entered into a $6.47m staged funding package, subject only to shareholder and
regulatory approval. This package will allow the Company to rapidly accelerate the pace of development at
Pungkut, with the first target being completion of the Bankable Feasibility Study.

Importantly, MAC have indicated to the Board they have the capacity to fund Pungkut all the way through to
production, should final project economics merit a development decision. This change in underlying funding
dynamic is highly significant for Oropa. In the past, a reliance on small capital raisings has impeded progress at
Pungkut by preventing our exploration team from committing to longer term capital programs.

With funding at Pungkut now completed, the Board will now turn our attention to the uranium and diamonds
exploration assets. Strategically the Board has determined Oropa is now a gold company and focused solely on
delivering at Pungkut. However, our other assets are attractive and have significant “latent” value. We believe
there are options available which will allow Oropa to make further operational progress and improve shareholder
value at our non-gold exploration assets, whilst simultaneously maintaining our strategic imperative to stay
focused on Pungkut.

The past 12 months has seen a significant change in management and directors at Oropa. I would like to thank
outgoing directors Bruce Tomich, Brian Hurley and Rod Murchison for their efforts over the years. Despite some
challenging periods, the Company is now in one of the strongest positions it has been in some time, which is a
testament to the quality of assets put in place by the previous Board.
I would also like to welcome Mr Ian Macpherson to the Board. Ian assisted in co-ordination of the fundraising
earlier in the year. On completion of stage 1 of the current funding package, Mr Paul Willis, a representative of
“MAC”, will be appointed to the Board of Oropa. The Board looks forward to working with both Ian and Paul and
seeing all shareholders benefit from their regional, technical and financial expertise.
Despite the substantial challenges of the past 12 months, Oropa has emerged stronger and more focused as a
result. The Board looks forward to capitalising on recent momentum and building value for shareholders over the
next year.
Yours sincerely,
Misha A Collins
6

REVIEW OF OPERATIONS

INTERNATIONAL PROJECTS
INDONESIA - PUNGKUT GOLD PROJECT, SUMATRA; (75%)

Figure 1. Pungkut Project Location Map:
Pungkut is a 7th Generation Contract of Work (“CoW”) located in North Sumatra, Indonesia. It lies 75km to the
south of G-Resources Group Limited’s Martabe gold deposit, which contains a resource base of approximately
6Moz Au and 60Moz Ag (Feasibility Study). Further to the north at Dairi, Herald Resources Limited 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 and associated Sumatran Volcanic Arc resulting
from the oblique collision of two tectonic plates. A complex suite occurs of Permian volcanics and sediments,
intruded by Jurassic and Cretaceous plutons, juxtaposed and overlain by Tertiary to Recent volcanics, intrusives,
and sediments. The tectonic setting provides both the heat engine to source and transport metals, and a
favourable structural and lithological environment 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.
Prospects of sediment-hosted gold, low-sulphidation epithermal-vein gold, gold-copper skarn, copper-gold
porphyry, copper-gold greisen, and lead-zinc skarn style mineralisation have been identified across the CoW.
7
REVIEW OF OPERATIONS
Figure 2. Pungkut COW showing main exploration prospects
EXPLORATION ACTIVITIES
The highlight of the year was the release of positive results from the Scoping Study conducted by SRK
Consultants (Australasia) Pty Ltd (“SRK”) as to the feasibility of mining the combined Sihayo 1 North and
Sambung Inferred Resources. A profitable operation sustained over a ten year life-span was indicated at a gold
price of US$800 per ounce.
Further resources would significantly boost the project’s economic robustness; therefore drilling through the year
has targeted mineralisation peripheral to the Sihayo resources. Successful drilling at the recently discovered Old
Camp area has identified over 400m strike of gold mineralisation. A return to the Sihayo 2 area with a stronger
geological model has lead to the drilling of a 250m strike of cohesive mineralisation, and generating a new target
in over 400m strike of further outcropping jasperiod. The drilling rig was recently mobilised to Sihayo 1, between
Sihayo 1 North and Sambung, to develop targets in this area identified in early mapping and drilling.
Steps have been taken to advance the project to a Bankable Feasibility Study (“BFS”) stage; the next key step
towards mine development and production. Quality control and database management protocols have been
updated. Oropa has been in discussions with consultants for geological resource modelling, geotechnical, and
metallurgy. Additional drilling rigs are planned to commence on the infill drilling program required to upgrade the
resource status under the JORC Code from Inferred to Indicated or Measured.
Results returned for 4 shallow diamond drill holes at Hutabargot Julu’s Sarahan South area targeting the
interpreted intersection of the Sarahan vein with the Ali vein. All holes returned significant mineralisation, however
bonanza grade core mineralisation has not yet been discovered. The target zone remains at depth and drilling
has been suspended at Hutabargot Julu while development of the Sihayo resources progresses.
Summary of Activities:
Sihayo 1 North:
�� Positive Scoping Study result into the mining economics of Sihayo 1 North and Sambung Inferred
Resources
�� 31 diamond drill holes (1,879m) targeting jasperiod on the flanks of the Inferred Resource
Hutabargot Julu:
�� 4 diamond drill holes (273m) completed
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REVIEW OF OPERATIONS
SIHAYO – SAMBUNG TREND
Scoping Study
Results of the Scoping Study conducted by independent consultant SRK confirmed the potential to develop the
Inferred Resources at Sihayo 1 North and Sambung into a profitable mining operation. The study was based on
the treatment of 1Mtpa using a conventional Carbon in Pulp (CIP) circuit with open pit mining of the Sihayo 1
North and Sambung resources. Specific assumptions and outcomes from the study (100% of project) are as
follows:
Table 1: Summary of Scoping Study assumptions and results:
Nominal Plant Throughput 1Mtpa
Mineral Resources Scheduled Inferred Resources
Expected Mine Life 10 years
Total mineralised inventory processed 10.1 M tonnes
Expected Head Grade 2.43 g Au/t
Expected Gold Recovery 80%
Average Annual Production 63,000 tr. Ounces
Stripping Ratio (t waste : t mineralised inventory) 3.8 : 1 (t/t)
Unit Cost per Tonne of mineralised inventory treated US$28.22/t
Cash Operating Costs per troy ounce of gold US$442/tr.oz
Gold price per troy ounce of gold US$800/tr.oz
Indicative pre-tax Net present value (NPV) (discount rate of 10%) US$50.3 million
Pre-tax IRR 25.8 %
Sensitivity analysis by SRK suggests that at a gold price of US$1000 per oz the indicative project NPV would
increase to approximately US$120 million.
Operating Costs
At the time of the study, in late 2008, significant operating cost pressures were being experienced by the industry
as a consequence of a number of factors, including a booming minerals industry impacting on labour rates, high
oil and diesel prices, high steel costs etc. In the context of those high cost inputs, the study estimated production
cash costs at Pungkut to be US$442/oz, which compares favourably with recently announced cash operating
costs from three of the world’s largest gold producers; Barrick, Newmont and AngloGold-Ashanti, which reported
September 2008 quarter production costs of US$466/oz, US$480/oz and US$486/oz respectively.
Study Parameters
SRK was commissioned by Oropa to conduct a scoping study assessment on the Sihayo 1 North and Sambung
Inferred Resources totalling 13.2 Mt at 2.4 g Au /t for 1.01 Moz of contained gold (Table 2). It should be noted
that the study is based on Inferred Resources only and therefore the results must be interpreted with caution and
give a guide only to possible economic viability.
Table 2: Sihayo 1 North and Sambung JORC Compliant Inferred Mineral Resource Estimates
Project Inferred Mineral
Resources
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 Resources 13.2 2.4 1.01
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REVIEW OF OPERATIONS
The study utilised Whittletm pit optimisation software for pit optimisation and indicative scheduling on pit shells
only, with an assumed gold price of US$800 per ounce. Mining operating costs, treatment operating costs and
capital expenditure were estimated by SRK. SRK’s processing plant capital expenditure is based on utilising new
plant and equipment, although Oropa considers that SRK’s capital expenditure budget can be significantly
reduced by utilising reconditioned plant and equipment, where appropriate. Power costs were supplied by Oropa
based on estimates for contract power generation, or grid power.
Mining and Processing
Open pit mining, with drill and blast methods, and using a mining fleet owned and operated by a mining
contractor.
Indicative production scheduling by SRK aimed at providing 1 million tonnes of mineralised inventory per year to
the process plant, produced a 10 year life of mine schedule with an average stripping ratio of 3.8 to 1. Processing
will be conducted with crushing, grinding, and conventional leaching using CIP. A large portion of the Sihayo 1
North resource is oxidised or partially oxidised and metallurgical testing undertaken to date indicates that 80%
gold recovery should be achievable.
Capital Costs
SRK has estimated the total capital expenditure for new equipment and infrastructure at US$75.6M, which
includes owners’ costs, and allowance for contingencies and working capital.
There is scope for optimisation of SRK’s projected capital expenditure which would lead to materially lower total
capital outlays than assumed in the study. Specific factors supporting this are;
• Local Indonesian construction costs for access roads, general infrastructure, construction of tailings dam
and the fabrication of site buildings will be significantly lower than SRK assumptions.
• Fully equipped and refurbished second hand mills and treatment plants become available from time to
time and could potentially be shipped at approximately 50% of the SRK estimated treatment plant capital
costs.
• Since the study was completed there has been a substantial reduction in project developments
worldwide, due to the global economic slowdown, thereby increasing the availability of critical project
components and other steel componentry, at reduced prices hence reducing the engineering margin on
EPCM and other contracts.
At present, the above capital expenditure scenarios are indicative and actual capital expenditure would not be
established until the completion of a Bankable Feasibility Study. .
Future Development
SRK concludes that “...if the many assumptions used are representative of the deposit, then the project would
appear to be both technically and economically feasible. More security would be given by a longer life.”
The positive results of the Scoping Study clearly support continued exploration and development efforts at
Pungkut. Oropa’s priorities at the project will be to enhance project viability by increasing resources in the vicinity
of the Sihayo 1 North resource, and to improve resource status to that of Indicated/Measured by a programme of
infill drilling at Sihayo 1 North and Sambung.
Recent drilling results achieved at the newly discovered Old Camp Area not yet included within the existing
resource inventory indicate there is a strong likelihood of further mineralisation being discovered at Sihayo 1
North, at low stripping ratios. The discovery of further mineralisation will create an opportunity to extend the
assumed 10 year mine life, and/ or increased annual gold production.
10
REVIEW OF OPERATIONS
Drilling Activities
A 20 hole program was completed at the newly discovered Old Camp prospect immediately adjacent to the north
eastern margin of the Sihayo 1 North Inferred Resource. First pass drilling at Old Camp has now identified gold
mineralisation greater than 1.5g/t over a strike length of over 400 metres and the mineralisation remains open
along strike to the northwest and to the southeast. Best results include:
SHDD-112 27m at 2.4g/t Au from surface
and 10m at 2.5g/t Au from 47 metres
and 14m at 2.4g/t Au from 82 metres
SHDD-118 8m at 3.1g/t Au from 34 metres
SHDD-119 7m at 1.8g/t Au from 10 metres
SHDD-120 13m at 4.2g/t Au from 6 metres
and 3.6m at 3.1g/t Au from 21.4 metres
SHDD-123 12m @ 1.6g/t Au from 8 metres
SHDD-125 14m @ 1.5g/t Au from 4 metres
SHDD-126 11m @ 2g/t Au from 28 metres
Figure 3: Old Camp Prospect drill hole locations
11
REVIEW OF OPERATIONS
The new results extend mineralisation to over 400 metres strike length and have made the Old Camp an
important new discovery which could add significantly to the current resource inventory. The results also highlight
potential to discover additional mineralisation along the margin of the current resource further to the southeast
where there has been no previous drilling beneath a large area of thin Tertiary cover.
In addition 10 holes were drilled at Sihayo 2 located 500m northwest from Sihayo 1 North. Previous wide spaced
reconnaissance drilling in 2004 returned results up to 4m @ 2.56 g/t Au from 69m. Widespread jasperiod had
been mapped and surface sampled which indicated that the gold grades were generally lower than at Sihayo 1
North. The recent program focused on drilling tightly spaced holes over the areas with the best surface sample
grades in order to determine the thickness and grade of mineralisation. Results indicate that amongst much of
the un-mineralized jasperoid, there is a continuous mineralized gold horizon which has been drilled over 250m of
strike length, and is bound by faults to the east and west. The improved geological model opens up a further
400m of strike to the area of potential mineralisation. Sihayo 2 is strategically located with regards to planned
road infrastructure for the Sihayo 1 North deposit, and mineralization is favorably orientated following the dipslope
of the hill. Best results include:
SH2DD- 010: 6m @ 1.5 g/t Au from 45 metres
SH2DD- 014: 2m @ 2.5 g/t Au from 12 metres
SH2DD-015: 14m @ 1.7 g/t Au from 3 metres
Figure 4: Sihayo 2 combined section 53550mN
The drilling rig has recently mobilized to Sihayo 1 located 200m south of Sihayo 1 North. 350 metres strike of
jasperoid have been exposed by erosion beneath the Tertiary cover, and previously drill tested by two wide
spaced holes which intersected 4.1m @ 1.36 g/t Au from 12.4m and 5.2m @ 1.69 g/t Au from 40.8m
respectively. 6 wide spaced holes are planned to test the continuity and grade of mineralisation over 400m strike.
A further 900m of strike remains open to the southeast towards the Sambung deposit.
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REVIEW OF OPERATIONS
Planned Activities
Sihayo trend exploration will continue to focus on drilling areas of potential shallow mineralisation, where
additional resources could make a significant economic contribution to the resource inventory, and will be
potentially mineable within the general parameters outlined by the Scoping Study. New targets will be generated
aiming at discovering deposits equal or larger than the known mineralisation. The current Inferred Resources
have been discovered on the basis of small outcrops restricted to the ridge-top of the Permian - Tertiary
sequence. This sequence follows the dip-slope of the mountain to the east, where the target unconformity area is
blanketed by thin Tertiary sediments over an area of approximately 20 square kilometres. Extensive grid based
low detection level soil sampling programs are planned to identify anomalous areas and blind mineralisation. Soil
sampling should be effective as the Tertiary sediments have low background gold, and mineralisation post-dates
sedimentation so there should be some ‘leakage’ of gold penetrating into the Tertiary sequence.
Figure 5: Sihayo Trend prospects
Table 3: Sihayo 1 North Significant Drill Intersections
Hole_ID Location Northing Easting Azimuth Dip Total Depth Intercept (Au)
SHDD110 Northwestern
102800 547410 0 -90 81 No significant result
SHDD111 Northwestern
102950 547390 0 -90 86 No significant result
SHDD112 Old Camp 103040 547880 0 -90 118 27m @ 2.4 g/t Au from surface
1m @ 1 g/t Au from 47m
2m @ 1.4 g/t Au from 51m
10m @ 2.5 g/t Au from 58m
14m @ 2.4 g/t Au from 82m
SHDD113 Old Camp 103000 547850 0 -90 50 2m @ 1.6 g/t Au from 17m
SHDD114 Old Camp 103090 547920 0 -90 80 No significant result
SHDD115 Old Camp 103160 547840 0 -90 77 No significant result
SHDD116 Old Camp 103120 547800 0 -90 55 No significant result
SHDD117 Old Camp 103090 547770 0 -90 74 3m @ 1.4 g/t Au from 3m
2m @ 3.9 g/t Au from 9m
1m @ 1 g/t Au from 25m
SHDD118 Old Camp 102940 547930 0 -90 76 8m @ 3.1 g/t Au from 34m
SHDD119 Old Camp 103010 547920 0 -90 24 7m @ 1.8 g/t Au from 10m
1m @ 1.5 g/t Au from 22m
SHDD120 Old Camp 103010 547930 0 -90 88 13m @ 4.2 g/t Au from 6m
13
Hole_ID Location Northing Easting Azimuth Dip Total Depth Intercept (Au)
3.6m @ 3.1 g/t Au from 21.4m
1m @ 1.3 g/t Au from 53m
SHDD121 Old Camp 102980 547970 0 -90 55 No significant result
SHDD122 Old Camp 103020 547990 0 -90 56 No significant result
SHDD123 Old Camp 103190 547750 0 -90 51 12m @ 1.6 g/t Au from 8m
SHDD124 Old Camp 103220 547770 0 -90 44 No significant result
SHDD125 Old Camp 103150 547720 0 -90 50 14m @ 1.5 g/t Au from 4m
1m @ 1.2 g/t Au from 21m
3m @ 1.2 g/t Au from 25m
SHDD126 Old Camp 103120 547680 0 -90 42 11m @ 2 g/t Au from 28m
SHDD127 Old Camp 103070 547650 0 -90 29 No significant result
SHDD128 Old Camp 103070 547780 0 -90 40 No significant result
SHDD129 Old Camp 103230 547660 0 -90 44 1m @ 2.1 g/t Au from 40m
SHDD130 Old Camp 103270 547700 0 -90 40 No significant result
SHDD131 Old Camp 103300 547730 0 -90 40 No significant result
SH2DD008 Sihayo 2 103340 547320 0 -90 68 1m @ 2 g/t Au from 6m
SH2DD009 Sihayo 2 103360 547360 0 -90 68 1m @ 2 g/t Au from 37m
SH2DD010 Sihayo 2 103470 547250 0 -90 77 1m @ 1.5 g/t Au from 1m
6m @ 1.5 g/t Au from 45m
SH2DD011 Sihayo 2 103440 547220 0 -90 76 3m @ 1.7 g/t Au from 44.5m
SH2DD012 Sihayo 2 103520 547160 0 -90 50 No significant result
SH2DD013 Sihayo 2 103490 547120 0 -90 81 2m @ 1.2 g/t Au from 24m
SH2DD014 Sihayo 2 103530 547070 0 -90 39 1m @ 1.2 g/t Au from 7m
2m @ 2.5 g/t Au from 12m
SH2DD015 Sihayo 2 103540 547060 0 -90 65 14m @ 1.7 g/t Au from 3m
1m @ 1.6 g/t Au from 28m
SH2DD016 Sihayo 2 103570 547060 0 -90 55 2m @ 1.1 g/t Au from 9m
1m @ 1.0 g/t from 13m
1m @ 1.3 g/t Au from 18m
SH2DD017 Sihayo 2 103600 547070 0 -90 Assays Pending
Notes
1. All assays determined by 50gm fire assay with AAS finish by Intertek- Caleb Brett Laboratories of Jakarta
2. Lower cut of 1.0ppm Au used
3. A maximum of 2m of consecutive internal waste (material less than 1.0ppm Au) per reported intersection
4. All interval grades were calculated as a weighted average
5. All intervals reported as down hole lengths
6. Sampling regime as quarter core for PQ diameter core and half core for HQ diameter core
7. Quality Assurance and Quality Control (QAQC):
8. Coordinates in UTM grid system
REVIEW OF OPERATIONS
14
REVIEW OF OPERATIONS
HUTABARGOT JULU
Results during the year for drilling at the Sarahan South area returned significant results in all holes of the
program. Drill programs at Hutabargot Julu have been testing low sulphidation epithermal quartz and massive
silica alteration in veins interpreted to extend over a strike length of up to 3km. Results from Oropa’s previous
drilling included a vein intersection of 5m @ 37.7 g/t Au from 47m (Ali Vein - HUTDD018) which indicates the
potential of the area to host rich epithermal vein mineralisation similar to other major deposits elsewhere in
Indonesia such as at Newcrest’s Gosowong and Kencana mines on Halmahera Island and Antam’s Pongkor mine
in West Java.
Drilling at Sarahan South targeted the massive silica alteration in the vicinity of a co-incident multi-element soil
anomaly and the interpreted intersection of the Sarahan vein with the Ali vein. Four shallow drill holes were
completed to test for near surface mineralisation. Results indicate that the area contains significant gold
mineralisation, but the bonanza grade targets not been intersected to date. Petrology, fluid inclusions, and core
textures indicate that the exposed vein is high level, and as such the target zone remains at depth. No immediate
drilling is planned while the present work focus’s on developing the Sihayo trend resources, However epithermal
vein targets can require persistence before exploration success and Hutabargot Julu remains a primary regional
target. Best results include:
HUTDD022: 12m @ 1.58 g/t Au from surface
HUTDD023: 2m @ 3.26 g/t Au from 7m
Figure 6: Hutubargot Julu Prospect – Cross Section
15
REVIEW OF OPERATIONS
Table 4: Hutabargot Julu Significant Drill Intersections
Hole_ID Location Northing Easting Azimuth Dip Total Depth Intercept (Au)
HUTDD020 Sarahan
South
5690 3300 0 -90 64 1m @ 2.2 g/t Au from 33m
HUTDD021 Sarahan
South
5690 3260 0 -90 76 2m @ 1.7 g/t Au from 4m
HUTDD022 Sarahan
South
5600 3320 0 -90 74 12m @ 1.6 g/t Au from surface
HUTDD023 Sarahan
South
5590 3280 0 -90 59 1m @ 1.4 g/t Au from surface
2m @ 3.3 g/t Au from 7m
1m @ 3.4 g/t Au from 17m
Notes
1. All assays determined by 50gm fire assay with AAS finish by Intertek- Caleb Brett Laboratories of Jakarta
2. Lower cut of 1.0ppm Au used
3. A maximum of 2m of consecutive internal waste (material less than 1.0ppm Au) per reported intersection
4. All interval grades were calculated as a weighted average
5. All intervals reported as down hole lengths
6. Sampling regime as quarter core for PQ diameter core and half core for HQ diameter core
7. Quality Assurance and Quality Control (QAQC):
8. Coordinates in HUTLG local grid system
SOUTH BLOCK
Regional mapping and sampling was completed at the Sejuk area in the South Block which aimed to follow up on
the discovery of historic low sulphidation epithermal quartz vein stream float boulders for which a composite
sample returned 60.5 g/t Au and 777 g/t Ag, and on sub-cropping epithermal quartz veins which returned 118 g/t
Au and 1080 g/t Ag. Mapping successfully identified an east-west sub-cropping vein within a large breccia
complex, however gold mineralisation is generally quite poorly developed. Further regional mapping has
attempted to locate source veins for epithermal float rock discovered in other streams, but these high grade veins
have remained elusive.
Petrology indicates a similar formation and erosion level to the Hutabargot Julu low-sulphidation veins, so while
these veins remain important targets with the potential for bonanza style mineralisation at depth, they are of a
lower priority for further work while exploration focuses on developing the Sihayo resources, and on regional
targets closer to existing infrastructure.
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REVIEW OF OPERATIONS
INTERNATIONAL PROJECTS
MALAWI – URANIUM EXPLORATION
The impact of the global economic downturn has necessitated the Company scale back on its exploration
programs and focus on Pungkut. Consequently, limited work was undertaken in Malawi during the past 12
months, although an in-house review of all previous work was undertaken.
Oropa maintains its interests in the Malawian uranium portfolio through its wholly owned subsidiary, Oropa
Exploration Pty Ltd (“OEPL”), which holds 100% interests in three Exclusive Prospecting Licences (“EPLs”) for
uranium exploration over the Mzimba Northwest, Chitunde and Chizani Project areas covering a total of some
3,500km2. The Chizani project area is located immediately to the north of Globe Metals & Mining’s (“Globe’s”)
advanced niobium-uranium-tantalum-zircon multi-commodity Kanyika deposit in central Malawi.
Additionally, OEPL has secured 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 Kayelekera uranium mine (“Kayelekera”). The Ngana and
Ngana East EPLs are presently granted for coal exploration and development. The two prospects are in a
strategic location, containing basins of Karroo sediments and being the nearest mapped occurrence of Karroo
within the 20km to the north of Karroo hosting uranium mineralisation at Kayelekera.
Figure 7: Malawi EPLs Location Map
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REVIEW OF OPERATIONS
INTERNATIONAL PROJECTS
INDIA – DIAMOND EXPLORATION
The Company continues to maintain its interests in four diamond prospects in India via its shareholding in
B.Vijaykumar Technical Services Pvt Ltd (“BVTS”), two in Chhattisgarh and the other two that are located in along
the Krishna River in Andhra Pradesh. Oropa’s Indian joint venture partners have been working with senior
government officials in Delhi attempting to expedite the hearing of the Block D-7 matter through the Mining
Tribunal in Delhi. However, owing to the federal and state elections earlier this year and recent revisions to the
1993 Indian Mining Policy, hearings by the tribunal were substantially reduced. BVTS is optimistic that this will
change after the Indian parliament ratifies the new mineral policy amendments and is currently pursuing avenues
to have the Block D-7 case heard as a matter of urgency.
In Andhra Pradesh, the high court of Andhra Pradesh is dealing with historical cases and is currently working on
outstanding cases during year 2006, which include the two claims by BVTS against the Andhra Pradesh
government to grant the adjoining Krishna River Valley and Krishna River Delta Reconnaissance Permit
applications. BVTS’s solicitors in Andhra Pradesh are expecting the two cases to be heard this coming
December/January.
AUSTRALIAN PROJECTS
Mt Keith Gold Project WA (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). No mining was undertaken on the project during the year.
Mulgabbie Gold Project WA (2% nett smelter royalty)
Oropa holds a 2% nett smelter royalty on 95% of all gold produced from the Mulgabbie Gold Project (ML 28/364
and PL’s 28/1078-1082) in excess of 100,000oz. No mining activities were carried out on the project area during
the year.
It is advised that in accordance with the Australian Stock Exchange Limited Listing Rule 5.6, the information in this report that
relates to Exploration Results is based on information compiled by Messrs Tony Martin and Dean Pluckhahn, who are
Members of the Australasian Institute of Mining and Metallurgy.
�� Mr Tony Martin is the Chief Executive Officer of Oropa Limited. Mr Martin has sufficient experience which is relevant to
the style of mineralisation and type of deposit which is under consideration and to the activity which Oropa is undertaking
to qualify as a “Competent Person” as defined in the 2004 Edition of the “Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves”. Mr Martin consents to the inclusion in this report of the matters based
on information in the form and context in which it appears.
�� Mr Dean Pluckhahn is a full time employee of Oropa Ltd’s 75% owned subsidiary company P.T. Sorikmas Mining
(“Sorikmas”). Mr Pluckhahn has sufficient experience which is relevant to the style of mineralisation and type of deposit
which is under consideration and to the activity which Sorikmas is undertaking to qualify as “Competent Person” as
defined in the 2004 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore
Reserves”. Mr Pluckhahn consents to the inclusion in this report of the matters based on information in the form and
context in which it appears.
18
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 2009 (“the reporting
period”).
DIRECTORS
The following persons were directors of Oropa during the financial year and up to the date of this report:
Philip C Christie Brian J Hurley (ceased 27 November 2008)
Misha Collins (appointed 8 July 2008) Roderick G Murchsion (ceased 27 November 2008)
Ian Macpherson (appointed 24 April 2009) Bruce NV Tomich (ceased 19 June 2009)
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.
REVIEW OF OPERATIONS
The review of operations is detailed at page 6 of the financial report.
OPERATING RESULTS
During the financial year the consolidated entity incurred a consolidated operating loss after tax of $2,895,178
(2008 - $3,907,994).
SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
During the financial year the Company employed a new CEO Tony Martin, with the prior CEO Bruce Tomich
resigning on 19 June 2009.
The Company also entered into a fund raising arrangement whereby $2 million was raised by issuing 29,949,000
shares with free attaching options of 14,974,000 as well as issuing 80,533,150 convertible notes convertible at 2
cents each on or before 12 months from the issue date. Interest is payable at 10% quarterly in arrears.
19
DIRECTOR’S REPORT
EMPLOYEES
The consolidated entity employed 37 employees as at 30 June 2009 (2008: 43 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/(liabilities) of the consolidated entity as at 30 June 2009 are ($1,106,544) (2008: $191,824).
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:
Misha A Collins CFA
(Chairman and Non Executive Director – appointed a director on 8 July 2008)
Experience and expertise
Mr 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 whilst working 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). Mr Collins worked in varying roles with BT Funds Management over an 11 year period 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.
Directorships of Other ASX Listed Companies
No other current directorships
Former ASX Listed Companies Directorships in last 3 years
No former directorships
Special responsibilities
Nomination committee member
Audit committee member
Remuneration committee member
20
DIRECTOR’S REPORT
INFORMATION ON DIRECTORS (CONTINUED)
Interests in shares and options
17,471,574 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.
Ian K Macpherson B.Comm CA
(Non Executive Director – appointed a director on 24 April 2009)
Experience and expertise
Mr Macpherson is a graduate from the University of Western Australia with a Bachelor of Commerce (B.Comm)
1977. He commenced his professional career in 1979 with Hungerford Hancock & Offner which subsequently
became KMG Hungerfords.
Mr Macpherson was admitted as a partner of that firm in 1986, having built up a specialist practice in the provision
of corporate and financial advice to the mining exploration industry. In 1987 the firm merged with Arthur Andersen
& Co. In 1990 Ian resigned from the partnership of Arthur Andersen & Co. to establish Ord Group.
Ian has specialised in the area of corporate advice with a particular emphasis on capital structuring, equity and
debt raising, corporate affairs and Stock Exchange compliance procedures for public companies, both mining and
industrial. He has acted in the role of director and company secretary for a number of his clients and has been
involved in numerous asset acquisition and disposal engagements involving the preparation of detailed
Information Memorandums, pre-acquisition reviews and Independent Reports.
Mr Macpherson is an Associate Member of the Institute of Chartered Accountants in Australia and past member,
Executive Council of the Association of Mining Exploration Companies (WA) Inc.
Directorships of Other ASX Listed Companies
Nimrodel Resources Ltd
Avita Medical Ltd (formerly Clincial Cell Culture Ltd)
Navigator Resources Ltd
Former ASX Listed Companies Directorships in last 3 years
Visiomed Group Ltd
Talisman Resources Ltd
Coal FE Resources Ltd
Special responsibilities
Nomination committee member
Audit committee member
Remuneration committee member
Interests in shares and options
10,872,000 ordinary shares
4,974,500 unlisted options exercisable at $0.05 on or before 31 August 2011
20,000,000 convertible notes, convertible at $0.02 within 12 months of the issue date expiring on 22 April 2010.
Philip C Christie
(Executive Director – appointed a director on 30 November 1992)
Experience and expertise
Mr Philip Christie offers more than 30 years of technical and management experience and skills relevant to the
petroleum and exploration/mining industries. He has spent most of his professional career in the oil and gas
industry, providing geological, production testing services and reservoir engineering to many of the world’s major
oil and gas companies operating in Australia, Asia, India, Pakistan and the Middle East. He has in excess of 20
years experience in providing these specialised services to the oil and gas industry, initially through holding
executive positions in two of the industry’s largest USA based multinational corporations and subsequently as the
managing director of a private exploration and production services consulting group. Since returning to Australia
in early 1990, he has provided management and geological consultancy services to the exploration and mining
industry in Australia, South East Asia, India and South Africa.
21
DIRECTOR’S REPORT
INFORMATION ON DIRECTORS (CONTINUED)
Directorships of Other ASX Listed Companies
No other current directorships
Former ASX Listed Companies Directorships in last 3 years
No former directorships
Special responsibilities
None
Interests in shares and options
624,852 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.
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 2009, and the number of meetings attended by each director, this includes via telephone conferencing.
Number eligible
to attend
Number
Attended
B J Hurley (resigned 27/11/2008) 3 3
P C J Christie 5 5
R G Murchison ( resigned 27/11/2008) 2 2
B Tomich (resigned 19/06/2009) 5 5
Ian Macpherson 1 1
M Collins 5 5
22
DIRECTOR’S REPORT
REMUNERATION REPORT (AUDITED)
Oropa Limited has established a remuneration committee comprising of Mr MA Collins and Mr IK Macpherson as
at the date of this report.
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.
23
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 2009.
2009 Short-term Post Employment Long Term Equity Performa
nce
related
Name
Cash
Salary &
Fees
Non
Monetary
Benefits
Superannuation
Retirement
Benefits
Incentive
Plans
Long
service
leave
Share
based Total
%
PCJ Christie(a) 214,480 1,853 - - - - - 216,333 -
BJ Hurley(b) 16,055 1,853 - - - - - 17,908 -
RG Murchison(c) 34,167 1,853 - - - - - 36,020 -
BNV Tomich(d) 121,786 1,853 8,964 - - - - 132,603 -
M Collins(e) 34,327 1,853 - - - - - 36,180 -
I Macpherson(f) 5,000 1,853 - - - - - 6,853 -
Dean Pluckhahn(g) 125,945 - 12,150 - - - - 138,095 -
Total 551,760 11,118 21,114 - - - - 583,992 -
2008 Short-term Post Employment Long term Equity Perform
ance
related
Name Cash
Salary &
Fees
Non
Monetary
Benefits
Superannuation
Retire-ment
benefits
Incentive
plans
Long
service
leave
Share
based
Total %
PCJ Christie 216,600 3,475 - - - - 67,503 287,578 -
BJ Hurley 46,090 3,475 450 - - - 56,252 106,267 -
RG MurchisoN 43,983 3,474 - - - - 33,751 81,208 -
BNV Tomich 30,360 3,474 - - - - 33,751 67,585 -
Dean Pluckhahn 125,004 - 11,250 - - - - 136,254 -
Total 462,037 13,898 11,700 - - - 191,257 678,892 -
There are no other key management personnel.
(a) $1,750 in director fees paid to PCJ Christie and $90,330 in consulting fees paid to Yellowmoon Gold
Mines Pty Ltd, a personally related entity of PCJ Christie. Outstanding consultancy fees of $122,400
(GST exclusive) as at 30 June 2009 have been accrued in the accounts as a creditor. $35,000 of this
was paid in August 2009.
(b) $2,055 in director fees paid to BJ Hurley and $14,000 in consulting fees paid to Bencove Pty Ltd, a
personally related entity of BJ Hurley.
(c) $1,440 in director fees paid to RG Murchison and $32,727 paid to Murchison Exports Ltd, a personally
related entity of RG Murchison.
(d) $1,750 in director fees and $120,036 in consulting fees paid to BNV Tomich.
(e) $15,987 is payable in director fees to Misha Collins and $18,340 paid to Misha Collins for consultancy
fees.
(f) $5,000 is payable in director fees to Ord Nexia Pty Ltd a personally related entity to Ian Macpherson.
(g) $125,945 in salary and wages paid to D Pluckhahn including annual leave of $9,055 taken.
24
DIRECTOR’S REPORT
REMUNERATION REPORT (AUDITED)
Compensation Options (Consolidated)
On 8 July 2008, the directors transferred between them 1,000,000 of their unlisted options to newly appointed
non executive director Misha Collins. No compensation options were granted during 2009.
Terms and Conditions for each Grant Vested
30 June 2009 Granted No Grant Date Fair
value
per
option
at grant
date
($)
Exercise
price per
option
($)
Expiry date First
Exercise
date
Last
exercise
date
No %
P Christie - - - - - - - - -
B Hurley - - - - - - - - -
R Murchison - - - - - - - - -
B Tomich - - - - - - - - -
M Collins - - - - - - - - -
I Macpherson - - - - - - - - -
Terms and Conditions for each Grant Vested
30 June 2008 Granted No Grant Date Fair
value
per
option
at grant
date
($)
Exercise
price per
option
($)
Expiry
date
First
Exercise
date
Last
exercise
date
No %
P Christie 3,000,000 12/05/2008 0.02250 0.15 31/05/1
3
15/05/08 31/05/13 3,000,000 100
B Hurley 2,500,000 12/05/2008 0.02250 0.15 31/05/1
3
15/05/08 31/05/13 2,500,000 100
R Murchison 1,500,000 12/05/2008 0.02250 0.15 31/05/1
3
15/05/08 31/05/13 1,500,000 100
B Tomich 1,500,000 12/05/2008 0.02250 0.15 31/05/1
3
15/05/08 31/05/13 1,500,000 100
Options Granted as part of remuneration
2009 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 - - - -
B Hurley - - - -
R Murchison - - - -
B Tomich - - - -
M Collins - - - -
I Macpherson - - - -
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%
There were no alterations to the terms and conditions of options granted as remuneration since their grant date.
25
DIRECTOR’S REPORT
REMUNERATION REPORT (AUDITED) (CONTINUED)
Shares issued on exercise of compensation options (Consolidated)
30 June 2009 Shares Issued
No
Paid per share Unpaid per share
P Christie - - -
B Hurley - - -
R Murchison - - -
B Tomich - - -
30 June 2008 Shares Issued
No
Paid per share Unpaid per share
P Christie - - -
B Hurley - - -
R Murchison - - -
B Tomich - - -
Consultancy Contract
Director, Mr Philip Christie has provided consultancy services to Oropa through his company Yellowmoon Gold
Mines Pty Ltd (Yellowmoon) over many years. In early 2008 Yellowmoon entered into a further written
Consultancy Agreement purportedly coming in effect on 8 February 2008 and running for a period of 3 years (the
Consultancy Agreement). Pursuant to the terms of that Consultancy Agreement, consultancy fees of $17,500
were payable per month.
There is currently a dispute between the Company and Yellowmoon as to whether, having regard to the
circumstances in which the Consultancy Agreement was entered into, the Consultancy Agreement is enforceable
by Yellowmoon. As at the date of this report, the parties are in negotiations to try and resolve the dispute. In the
unlikely event that those negotiations are unsuccessful, it is anticipated that the Company would seek rescission
of the Consultancy Agreement. It is also anticipated that Yellowmoon would contend that the Consultancy
Agreement was terminated prior to the expiry date and that a termination fee would be payable. The maximum
liability of the Company for such termination fee as at balance date if Yellowmoon’s argument was successful
would be $337,750 (excluding GST).
Officer Emoluments
Fees of $59,580 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 $11,118 was incurred 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:
• 12,791,439 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.
• 13,280,376 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.
The above options are quoted on the Australian Securities Exchange Limited.
• 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 unlisted director options exercisable at 15 cents at any time on or before the expiry date
of 31 May 2013.
• 14,974,500 unlisted options exercisable at 5 cents at any time on or before the expiry date of 31
August 2011.
• 7,500,000 unlisted options exercisable at 5 cents at any time on or before the expiry date of 26
August 2011.
26
DIRECTOR’S REPORT
CONVERTIBLE NOTES
Convertible notes on issue as at the date of this report are:
• 75,533,150 convertible at 2 cents each on or before 12 months from the issue date of the convertible
note.
PROCEEDINGS ON BEHALF OF COMPANY
No person entitled to exercise any of the options has any right, by virtue of the options, to participate in any
share issue of any other body corporate.
The names of all persons who currently hold options, granted at any time, are entered in the register kept by the
Company pursuant to Section 216C of the Corporations Act 2001 and the register may be inspected free of
charge.
No person has applied for leave of Court to bring proceedings on behalf of the Company or intervene in any
proceedings to which the Company is a party for the purpose of taking responsibility on behalf of the Company
for all or part of these proceedings.
The Company was not party to any such proceedings during the year.
CORPORATE GOVERNANCE
The Company’s Corporate Governance Statement is set out on page 28.
INSURANCE OF DIRECTORS AND OFFICERS
During the financial year, Oropa Limited incurred a premium of $11,118 to insure the directors and officers of the
Company.
The liabilities insured are costs and expenses that may be incurred in defending civil or criminal proceedings that
may be brought against the officers in their capacity as officers of entities in the consolidated entity.
NON-AUDIT SERVICES
There were no non-audit services undertaken by Stantons International during the financial year.
A copy of the auditor’s independence declaration as required under section 307C of the Corporations Act 2001 is
set out on page 27.
Signed in accordance with a resolution of the Board of Directors.
Misha A Collins
Director
25 September 2009

28
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 THE ASX CORPORATE GOVERNANCE COUNCIL’S
COPORATE GOVERNANCE PRINCIPLES AND RECOMMENDATIONS:
During the Reporting Period the Company has complied with each of the Eight Essential Corporate Governance
Principles1 and the corresponding ASX Corporate Governance Council’s Corporate Governance Principles and
Recommendation 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 29)
2 2.2 The Chairperson does not satisfy
paragraph 2 of the Independence
Test.
The Board considers Mr Collins to act
in an independent manner for the
reasons set out under the heading
"Identification of Independent
Directors". (see page 29)
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.
1 A copy of the Eight Essential Corporate Governance Principles are set out on the Company’s website under the Section entitled "Corporate
Governance".
29
CORPPORATE GOVERNANCE STATEMENT
SKILLS, EXPERIENCE, EXPERTISE AND TERM OF OFFICE OF EACH DIRECTOR
A profile of each director containing the applicable information is set out on pages 19-21 of the Annual Report.
IDENTIFICATION OF INDEPENDENT DIRECTORS
The independent directors of the Company are Misha Collins and Ian Macpherson.
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
Misha Collins 0 0
Ian Macpherson 0 0
There was no nomination committee member meeting held during the 2009 year.
NAMES AND QUALIFICATIONS OF AUDIT COMMITTEE MEMBERS
Director Misha Collins is a member of the Audit Committee. Mr Collins is an independent non executive director,
with experience in finance and mining industries as set out in this Annual Report at page 19-21. Director Ian
Macpherson is a member of the Audit Committee. Mr Macpherson is an independent non executive director,
with experience in finance and mining industries as set out in this Annual Report at page 19-21.
NUMBER OF AUDIT COMMITTEE MEETINGS AND NAMES OF ATTENDEES
Name No. of meetings held No. of meetings attended
Misha Collins 0 0
Ian Macpherson 0 0
There was no audit committee meeting held during the 2009 year.
30
CORPPORATE 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
Misha Collins 0 0
Ian Macpherson 0 0
There was no remuneration committee member meeting held during the 2009 year.
EXISTENCE AND TERMS OF ANY SCHEMES FOR RETIREMENT BENEFITS FOR NON-EXECUTIVE
DIRECTORS
There are no termination or retirement benefits for non-executive directors.
31
INCOME STATEMENT
FOR THE YEAR ENDED 30 JUNE 2009
Notes Consolidated Parent Entity
2009 2008 2009 2008
$ $ $ $
Revenue 3 20,360 63,406 1,163,209 63,406
Corporate secretarial expenses (34,040) (39,377) (32,980) (38,367)
Depreciation and amortisation 3(a) (15,767) (18,217) (12,574) (15,010)
Diminution in value of investments (32,897) - (27,783) -
Employee benefits expense (151,933) (137,096) (151,933) (137,096)
Exploration expenditure written off 3(a) (1,847,780) (2,178,983) (276,860) (127,421)
External consultancy expenses (196,503) (126,050) (158,047) (88,073)
Finance costs (282,253) - (282,253) -
Foreign exchange loss - (883,477) - (724,139)
Insurance expenses (28,167) (19,114) (28,167) (19,114)
Provision for doubtful debts 3(a) - - (2,462,770) (1,237,588)
Plant and equipment written off 3(a) - (4,716) - (4,716)
Rental expenses 3(a) (54,395) (44,644) (54,395) (44,644)
Share based payments - (191,257) - (191,257)
Travel and entertainment expenses (31,964) (34,122) (30,620) (30,272)
Other expenses (239,839) (294,347) (235,306) (288,695)
Loss before income tax (2,895,178) (3,907,994) (2,590,479) (2,882,986)
Income tax expense 3(b) - - - -
Net loss after income tax (2,895,178) (3,907,994) (2,590,479) (2,882,986)
Net loss after income tax attributable to the
members of the parent entity (2,895,178) (3,907,994) (2,590,479) (2,882,986)
Basic/diluted loss per share 21 (0.01) (0.02)
The above Income Statement should be read in conjunction with the accompanying notes.
32
BALANCE SHEET
AS AT 30 JUNE 2009
Notes Consolidated Parent Entity
2009 2008 2009 2008
$ $ $ $
CURRENT ASSETS
Cash and cash equivalents 20(a) 917,881 407,241 882,211 185,283
Trade and other receivables 4 112,154 147,625 61,206 39,079
Other financial assets 5 13,550 41,333 13,550 41,333
TOTAL CURRENT ASSETS 1,043,585 596,199 956,967 265,695
NON-CURRENT ASSETS
Other assets 7 80,105 157,832 43,864 49,450
Property, plant and equipment 6 78,841 98,133 43,207 55,781
TOTAL NON-CURRENT ASSETS 158,946 255,965 87,071 105,231
TOTAL ASSETS 1,202,531 852,164 1,044,038 370,926
CURRENT LIABILITIES
Trade and other payables 8 305,771 194,832 262,706 43,267
Provisions 9 489,612 394,315 6,372 17,776
Other liabilities 23,857 23,864 23,857 23,864
Convertible Note 10 1,479,335 - 1,479,335 -
TOTAL CURRENT LIABILITIES 2,298,575 613,011 1,772,270 84,907
NON-CURRENT LIABILITIES
Trade and other payables 8 - 33,329 - -
Provisions 9 10,500 14,000 10,500 14,000
TOTAL NON-CURRENT LIABILITIES 10,500 47,329 10,500 14,000
TOTAL LIABILITIES 2,309,075 660,340 1,782,770 98,907
NET ASSETS / (LIABILITIES) (1,106,544) 191,824 (738,732) 272,019
SHAREHOLDERS’ EQUITY
Parent entity interest:
Contributed equity 11 36,429,079 35,141,145 36,429,079 35,141,145
Shares to be issued 11 387,500 245,000 387,500 245,000
Reserves 12(a)(b) (c) 2,621,222 2,454,846 972,570 823,276
Accumulated losses 12(d) (40,642,796) (37,747,618) (38,527,881) (35,937,402)
Total parent entity interest (1,204,995) 93,373 (738,732) 272,019
Minority interest in controlled entities 19(b) 98,451 98,451 - -
TOTAL SHAREHOLDERS'
EQUITY (1,106,544) 191,824 (738,732) 272,019
The above Balance Sheet should be read in conjunction with the accompanying notes.
33
CASH FLOW STATEMENT
FOR THE YEAR ENDED 30 JUNE 2009
Notes Consolidated Parent Entity
2009 2008 2009 2008
$ $ $ $
CASH FLOWS FROM
OPERATING ACTIVITIES
Payments to creditors and suppliers (644,359) (738,672) (603,590) (693,553)
Interest received 11,378 23,406 11,378 23,406
NET CASH FLOWS USED IN
OPERATING ACTIVITIES 20(b) (632,981) (715,266) (592,212) (670,147)
CASH FLOWS FROM
INVESTING ACTIVITIES
Mining exploration and evaluation expenditure (1,905,407) (2,094,134) (276,860) (127,421)
Purchase of property, plant and equipment (6,147) (47,587) - (20,386)
Payments for investments (5,114) - - -
Decrease/(Increase) in security deposits paid 106,269 (105,202) 5,579 (49,450)
Advances in loans to controlled entities - - (1,310,940) (1,961,723)
NET CASH FLOWS USED IN
INVESTING ACTIVITIES (1,810,399) (2,246,923) (1,582,221) (2,158,980)
CASH FLOWS FROM FINANCING
ACTIVITIES
Proceeds from issue of shares and options 1,039,897 1,797,424 1,039,897 1,797,424
Proceeds from shares to be issued 382,500 245,000 382,500 245,000
Share and option issue costs (36,700) (68,255) (36,700) (68,255)
Convertible note issues 1,485,664 - 1,485,664 -
NET CASH FLOWS
FROM FINANCING ACTIVITIES 2,871,361 1,974,169 2,871,361 1,974,169
Net increase / (decrease) in cash and cash
Equivalents held 427,981 (988,020) 696,928 (854,958)
Effects of exchange rate changes on cash 82,659 (55,857) - -
Cash and cash equivalents at the beginning of the
financial year 407,241 1,451,118 185,283 1,040,241
Cash and cash equivalents at the end of the
financial year 20(a) 917,881 407,241 882,211 185,283
The above Statement of Cash Flows should be read in conjunction with the accompanying notes.
34
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2009
Consolidated
Share Capital Reserves Accumulated Minority Total
Losses Interest
$ $ $ $ $
Balance at 1.7.07 33,411,976 1,484,110 (33,839,624) 98,451 1,154,913
Issue of shares and shares
to be issued 2,042,424 - - - 2,042,424
Share issue costs (68,255) - - - (68,255)
Foreign currency reserve - 779,479 - - 779,479
Issue of options - 191,257 - - 191,257
Loss for the year - - (3,907,994) - (3,907,994)
Balance at 30.06.08 35,386,145 2,454,846 (37,747,618) 98,451 191,824
Balance at 1.7.08 35,386,145 2,454,846 (37,747,618) 98,451 191,824
Issue of shares and
shares to be issued 1,535,337 - - - 1,535,337
Convertible note equity component - 27,862 - - 27,862
Share & option costs (104,903) - - - (104,903)
Issue of options - 121,432 - - 121,432
Foreign currency reserve - 17,082 - - 17,082
Loss for the year - - (2,895,178) - (2,895,178)
Balance at 30.06.09 36,816,579 2,621,222 (40,642,796) 98,451 (1,106,544)
Parent
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 and shares
to be issued 2,042,424 - - - 2,042,424
Share issue costs (68,255) - - - (68,255)
Foreign currency reserve - - - - -
Issue of options - 191,257 - - 191,257
Loss for the year - - (2,882,986) - (2,882,986)
Balance at 30.06.08 35,386,145 823,276 (35,937,402) - 272,019
Balance at 1.7.08 35,386,145 823,276 (35,937,402) - 272,019
Issue of shares and
shares to be issued 1,535,337 - - - 1,535,337
Convertible note equity component - 27,862 - - 27,862
Share & option costs (104,903) - - - (104,903)
Issue of options - 121,432 - - 121,432
Loss for the year - - (2,590,479) - (2,590,479)
Balance at 30.06.09 36,816,579 972,570 (38,527,881) - (738,732)
The above Statement of Changes in Equity should be read in conjunction with the accompanying notes.
35
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2009
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 25 September 2009. 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 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 2009 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:
• AASB 2008-1 Amendments to Australian Accounting Standard – Share-based Payment: Vesting
Conditions and Cancellations this clarifies the definition of vesting conditions, introduces the
concept of non-vesting conditions, requires non-vesting conditions to be reflected in grant-date
fair value and provides the accounting treatment for non-vesting conditions and cancellations.
The amendments to AASB 2 will be mandatory for the Group’s 30 June 2010 financial
statements, with retrospective application. The Group has not yet determined the potential effect
of the amendment.
• Revised AASB 8 Operating Segments introduces the “management approach” to segment
reporting. AASB 8, which becomes mandatory for the Company’s 30 June 2010 financial
statements, will require a change in the presentation on and disclosure of segment information
based on the internal reports regularly reviewed by the Company’s Chief Operating Decision Maker
in order to assess each segment’s performance and to allocate resources to them. The Company
has not yet determined the potential effect of the amendment.
• Revised 101 Presentation of Financial Statements introduces the term total comprehensive
income, which represents changes in equity during a period other than those changes resulting
from transactions with owners in their capacity as owners. Total comprehensive income may be
presented in either a single statement of comprehensive income (effectively combining both the
income statement and all non-owner changes in equity in a single statement) or, in an income
statement and a separate statement of comprehensive income. The Company has not yet
determined the potential effect of the amendment.
36
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2009
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
• Revised AASB 2008-5 Amendments to Australian Accounting Standards arising from the Annual
Improvements Process and 2008-6 Further Amendments to Australian Accounting Standards
arising from the Annual Improvements Process affects various AASBs resulting in minor changes
for presentation, disclosure, recognition and measurement purposes. The amendments, which
become mandatory for the Company’s 30 June 2010 financial statements, are not expected to
have any impact on the financial statements.
• AASB 2008-7 Amendments to Accounting Standards – Cost of an Investment in a Subsidiary,
Jointly Controlled Entity or Associate changes the recognition and measurement of dividend
receipts as income and addresses the accounting of a newly formed parent entity in the separate
financial statements. The amendments become mandatory for the Company’s 30 June 2010
financial statements. The Company has not yet determined the potential effect of the amendment.
• Amended AASB 127 Consolidated and Separate Financial Statements (2008) requires accounting
for changes in ownership interests by the Group in a subsidiary, while maintaining control, to be
recognised as an equity transaction. When the Group loses control of subsidiary, any interest
retained in the former subsidiary will be measured at fair value with the gain or loss recognised in
profit or loss. The amendment to AASB 127, which become mandatory for the Group’s 30 June
2010 financial statements are not expected to have a significant impact on the consolidated
financial statements.
• Revised AASB 123 Borrowing Costs removes the option to expense borrowing costs and requires
that an entity capitalise borrowing costs directly attributable to the acquisition, construction or
production of a qualifying asset as part of the cost of that asset. The revised AASB 123 will
become mandatory for the Group’s 30 June 2010 financial statements and will constitute a change
in accounting policy for the Group. In accordance with the transitional provisions the Group will
apply the revised AASB 123 to qualifying assets for which capitalisation of borrowing costs
commences on or after the effective date. Therefore there will be no impact on prior periods in the
Group 30 June 2010 financial statements.
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 2009. 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 19 to the financial statements. All controlled entities
have a June financial year end.
37
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2009
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(a) Principles of Consolidation
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.
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.
38
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2009
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(c) Property, Plant & Equipment
Depreciation
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.
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.
39
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2009
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
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.
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.
40
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2009
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Group Companies
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 on-costs.
Employee benefits payable later than one year have been measured at the present value of the
estimated future cash outflows to be made for those benefits.
(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.
(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.
41
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2009
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(o) Share Based Payment Transactions
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.
(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.
NON-CURRENT
All debtors that are not expected to be received within 12 months of reporting date are included in noncurrent
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:
42
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2009
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(s) Significant accounting judgements, estimates and assumptions
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.
(t) Comparative Figures
When required by Accounting Standards, comparative figures have been adjusted to conform to
changes in presentation for the current financial year.
43
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2009
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
2009
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
$
Applicable
interest
rate on 30
June
%
Financial Assets
Cash and cash
equivalents 917,881 - - - 917,881 2.50
Trade and other
receivables - - - 112,154 112,154 -
Other financial
assets - - - - 13,550 13,550
Deposits - 80,105 - - - 80,105 3.40-4.20
Total Financial
Assets 917,881 80,105 - - 125,704 1,123,690
Financial
Liabilities
Trade and other
payables - - - - 305,771 305,771 -
Convertible Note 1,479,335 - 1,479,335 10
Other 23,857 - - - - 23,857
Total Financial
Liabilities 23,857 1,479,335 - - 305,771 1,808,963
44
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2009
2. RISK MANAGEMENT (CONTINUED)
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
$
Applicable
interest
rate on 30
June
%
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 and other
payables - - - - 228,161 228,161 -
Other 23,864 - - - - 23,864 -
Total Financial
Liabilities 23,864 - - 228,161 252,025
Parent
2009
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
$
Applicable
interest
rate on 30
June
%
Financial Assets
Cash and cash
equivalents 882,211 - - - - 882,211 2.50
Trade and other
receivables - - - - 61,206 61,206 -
Other financial
assets - - - - 13,550 13,550 -
Deposits - 43,864 - - - 43,864 3.40-4.20
Total Financial
Assets 882,211 43,864 - - 74,756 1,000,831
Financial Liabilities
Trade and other
payables - - - - 262,706 262,706 -
Convertible Note 1,479,335 - - - 1,479,335 10
Other 23,857 - - - - 23,857 -
Total Financial
Liabilities 23,857 1,479,335 - - 262,706 1,765,898
45
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2009
2. RISK MANAGEMENT (CONTINUED)
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
$
Applicable
interest
rate on 30
June
%
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 and other
payables - - - - 43,267 43,267 -
Other 23,864 - - - - 23,864 -
Total Financial
Liabilities 23,864 - - - 43,267 67,131
(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 23.
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 23 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. Financial obligations of the Consolidated Entity and the Company consist of trade
creditors and other payables. Additionally the Consolidated Entity and the Company have a convertible note
contractual agreement in place.
The Company has not conducted a sensitivity analysis on credit or interest rate risk as the amounts are not
considered significant and the convertible notes have a fixed interest rate.
46
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2009
Consolidated Parent Entity
2009 2008 2009 2008
$ $ $ $
3. REVENUE
Revenue from outside the operating activities
Interest 11,378 23,406 11,378 23,406
Foreign exchange gain 8,982 - 1,151,831 -
Proceeds on sale of interest in Golden Valley
joint venture - 40,000 - 40,000
Revenue from ordinary activities 20,360 63,406 1,163,209 63,406
3(a) LOSS BEFORE INCOME TAX
Net Expenses
The loss before income tax includes the following expenses:
(i) Expenses:
Exploration expenditure written off 1,847,780 2,178,983 276,860 127,421
Depreciation 15,767 18,217 12,574 15,010
Rental expenses 54,395 44,644 54,395 44,644
Provision for doubtful debts - - 2,462,770 1,237,588
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
(2,895,178) (3,907,994) (2,590,479) (2,882,986)
3(b) INCOME TAX
Prima facie tax benefit on loss from ordinary
activities: (868,553) (1,172,398) (777,144) (864,896)
Tax effect of amounts which are not deductible
(taxable) in calculating taxable income:
Unrealised foreign exchange losses (gains) (2,694) 265,043 (345,550) 217,242
Entertainment 1,870 4,822 1,870 4,822
Equity based remuneration - 57,375 - 57,375
Legal 4,909 915 4,912 915
Doubtful debts - - 738,831 -
(864,468) (844,243) (377,081) (584,542)
Movement in unrecognised temporary
Difference 506,635 621,270 37,371 376,348
Tax effect of current year tax losses for which
no deferred tax asset has been recognised 357,833 222,973 339,710 208,194
Income tax expense - - - -
47
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2009
Consolidated Parent Entity
2009 2008 2009 2008
$ $ $ $
3(b) INCOME TAX (CONTINUED)
(ii) Unrecognised temporary differences
Deferred Tax Assets (at 30%)
Carried forward revenue tax losses 4,249,706 3,900,659 3,548,170 3,208,454
Carried forward capital tax losses 823,879 823,879 703,957 703,957
Carried forward foreign tax losses 1,841,885 1,695,413 1,396,466 1,313,599
Mineral exploration 3,273,409 - - -
Provisions 145,244 116,993 11,062 14,033
Blackhole expenditure 67,601 93,243 67,601 93,243
Prepayments - 3,335 - 3,335
10,401,724 6,633,522 5,727,256 5,336,621
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 84,268 48,069 61,206 27,961
Prepayments 27,886 99,556 - 11,118
112,154 147,625 61,206 39,079
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 282,573 280,997
Less provision for doubtful debts (282,573) (280,997)
Loans to controlled entities
Less provision for doubtful debts 14,231,615 11,768,845
(14,231,615) (11,768,845)
- - - -
Further information relating to receivables from related parties is set out in Note 17.
48
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2009
Consolidated Parent Entity
2009 2008 2009 2008
$ $ $ $
5. OTHER FINANCIAL ASSETS
CURRENT
Investments listed on a prescribed stock
exchange and unlisted public companies 13,550 41,333 13,550 41,333
NON-CURRENT
Investments in controlled entities (Note 19)
at cost 2,344,382 2,344,382
Less provision for diminution (2,344,382) (2,344,382)
Investments in other entities, at cost 1,839,624 1,834,510
Less provision for diminution (1,839,624) (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 has been transferred to other
investments from investment in associates. This investment has been fully provided for.
49
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2009
Consolidated Parent Entity
2009 2008 2009 2008
$ $ $ $
6. PROPERTY, PLANT AND EQUIPMENT
NON-CURRENT
Leasehold improvements, at cost 12,729 12,729 12,729 12,729
Less: accumulated amortisation (5,087) (2,696) (5,087) (2,696)
7,642 10,033 7,642 10,033
Plant and equipment, at cost 73,759 58,455 13,079 13,079
Less: accumulated depreciation (54,274) (37,109) (7,025) (4,545)
19,485 21,346 6,054 8,534
Motor vehicles, at cost 26,697 24,947 - -
Less: accumulated depreciation (14,427) (8,124) - -
12,270 16,823 - -
Office equipment, at cost 146,129 135,221 84,991 84,991
Less: accumulated depreciation (106,685) (85,290) (55,480) (47,777)
39,444 49,931 29,511 37,214
Total property, plant and equipment 78,841 98,133 43,207 55,781
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:
2009
Consolidated Leasehold
Improvements
$
Plant &
Equipment
$
Motor
Vehicles
$
Office
Equipment
$
Total
$
Carrying amount at
1 July 2008
10,033 21,346 16,823 49,931 98,133
Effect of foreign currency
translation
- 2,527 788 2,443 5,758
Additions - 4,565 - 1,134 5,699
Write-offs & reclassification - - - - -
Depreciation expense (2,391) (8,953) (5,341) (14,064) (30,749)
Carrying amount at
30 June 2009
7,642 19,485 12,270 39,444 78,841
50
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2009
6. PROPERTY, PLANT AND EQUIPMENT (CONTINUED)
Reconciliations
2009
Parent
Leasehold
Improvements
$
Plant &
Equipment
$
Office
Equipment
$
Total
$
Carrying amount at
1 July 2008
10,033 8,534 37,214 55,781
Additions
Write-offs & reclassification
Depreciation expense (2,391) (2,480) (7,703) (12,574)
Carrying amount at
30 June 2009
7,642 6,054 29,511 43,207
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
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
51
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2009
Consolidated Parent Entity
2009 2008 2009 2008
$ $ $ $
7. OTHER ASSETS
NON-CURRENT
Mining exploration and evaluation
Expenditure
Expenditure incurred during the year 1,847,780 2,178,983 276,860 127,421
Expenditure written off during the year (1,847,780) (2,178,983) (276,880) (127,421)
Costs carried forward - - - -
- - - -
Deposits 80,105 157,832 43,864 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 $80,105 include a building rental deposit of USD $4,174 (2008: USD $4,293), a mineral
exploration deposit of USD $25,000 (2008: USD 100,000).
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
Other creditors 109,884 179,832 66,819 28,267
Related party payables 175,887 - 175,887 -
Accruals 20,000 15,000 20,000 15,000
305,771 194,832 262,706 43,267
NON-CURRENT
Other creditors - 33,329 - -
- 33,329 - -
52
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2009
Consolidated Parent Entity
2009 2008 2009 2008
$ $ $ $
9. PROVISIONS
CURRENT
Employee Entitlements 480,547 387,878 6,372 17,776
Taxation 9,065 6,437 - -
489,612 394,315 6,372 17,776
NON CURRENT
Employee Entitlements- long service leave
10,500 14,000 10,500 14,000
Employee numbers Number Number
Average number of employees during the financial year 37 43 2 2
10. CONVERTIBLE NOTE
Convertible Note
1,479,335 - 1,479,335 -
During the year 80,533,150 convertible notes were issued convertible at 2 cents within 12 months of the
issue date. Movements in convertible notes during the year are as follows:
Number $
01/07/2008 Opening balance - -
15/05/2009 Convertible Notes issued 46,250,000 925,000
10/06/2009 Notes converted into shares (5,000,000) (100,000)
24/06/2009 Convertible Notes issued 34,283,150 685,663
30/06/2009 Equity component of convertible note and
adjustment on conversion - (27,862)
30/06/2009 Interest component of convertible note - (3,466)
75,533,150 1,479,335
As at 30 June 2009 the nominal value of the convertible note was $1,510,663.
Terms and Conditions
• The Notes are convertible at 2 cents each and can be converted any time after the issue date and within 12
months of this date.
• Interest is payable at a fixed rate of 10% per annum paid quarterly in arrears on the principal sum
outstanding.
• The Company may make early repayment of the Convertible Notes to the Noteholder provided ten business
days notice is given.
• The Noteholders have a fixed and floating charge over the assets of Oropa Limited.
53
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2009
Consolidated and Parent Entity
2009 2008
$ $
11. CONTRIBUTED EQUITY
Issued Capital
Fully paid – Ordinary shares
239,613,275 (2008 – 184,451,912) 36,429,079 35,141,145
Shares to be issued 387,500 245,000
36,816,579 35,386,145
Shares to be issued of $387,500 represents share application money received and receivable for a share
purchase plan that closed on 30 June 2009. This represents shares of 15,196,118 at 2.55 cents. These shares
were subsequently issued on 3 July 2009.
Movements in ordinary share capital of the Company during the past 2 years were as follows:
Number $
01/07/2007 Opening balance 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 5,454,545 300,000
30/06/2008 Share issue costs - (68,255)
184,451,912 35,141,145
15/07/2008 Share issue 7,636,362 420,000
07/10/2008 Share issue 7,576,000 383,500
09/02/2009 Share issue 20,461,539 301,000
17/04/2009 Share issue 14,487,461 188,337
28/11/2008 Exercise of option 1 -
10/06/2009 Conversion of Convertible Note 5,000,000 100,000
30/06/2009 Share issue costs - (104,903)
239,613,275 36,429,079
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.
12. RESERVES AND ACCUMULATED LOSSES
Consolidated Parent Entity
2009 2008 2009 2008
$ $ $ $
(a) Option Premium Reserve
Balance at the beginning of the financial year 823,276 632,019 823,276 632,019
Options issued during the year 121,432 191,257 121,432 191,257
Balance at the end of the financial year 944,708 823,276 944,708 823,276
54
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2009
12. RESERVES AND ACCUMULATED LOSSES (CONTINUED)
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.
Consolidated Parent Entity
2009 2008 2009 2008
$ $ $ $
(b) Equity Reserve
Balance at the beginning of the financial year - - - -
Options issued during the year 27,862 - 27,862 -
Balance at the end of the financial year 27,862 - 27,862 -
Options
As at 30 June 2009 the Company had the following options on issue:
• 12,791,439 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.
• 13,280,376 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.
• 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 unlisted options exercisable at 15 cents at any time on or before the expiry date
of 31 May 2013.
• 14,974,500 unlisted options exercisable at 5 cents at any time on or before the expiry date of 31
August 2011.
• 7,500,000 unlisted options exercisable at 5 cents at any time on or before the expiry date of 26
August 2011
All options, except for unlisted options, are quoted on the Australian Securities Exchange Limited.
The following options were issued during the year:
• 13,280,376 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.
• 14,974,500 options exercisable at 5 cents at any time on or before the expiry date of 31 August
2011.
• 7,500,000 options exercisable at 5 cents at any time on or before the expiry date of 26 August 2011
The following options lapsed during the year:
• 500,000 unlisted options exercisable at 12 cents at any time on or before the expiry date of 20
October 2008.
55
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2009
12. RESERVES AND ACCUMULATED LOSSES (CONTINUED)
Consolidated Parent Entity
2009 2008 2009 2008
$ $ $ $
(c) Foreign Currency Reserves
Balance at the beginning of the financial year 1,631,570 852,091 - -
Movement for the year 17,082 779,479 - -
Balance at the end of the financial year 1,648,652 1,631,570 - -
(d) Accumulated Losses
Balance at the beginning of the financial year (37,747,618) (33,839,624) (35,937,402) (33,054,416)
Net losses attributable to members of
Oropa Limited (2,895,178) (3,907,994) (2,590,479) (2,882,986)
Balance at the end of the financial year (40,642,796) (37,747,618) (38,527,881) (35,937,402)
13. SHARE BASED PAYMENT 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:
2009
No
2009
WAEP
Cents
2008
No
2008
WAEP
Cents
Outstanding at the beginning of the year 11,700,000 14.00 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 (500,000) - - -
Outstanding at the end of the year 11,200,000 14.00 11,700,000 14.00
The outstanding balance as at 30 June 2009 is represented by:
• 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.
14. 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:
56
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2009
14. KEY MANAGEMENT PERSONNEL DISCLOSURE (CONTINTUED)
Key Management Personnel
Bruce Tomich CEO (resigned 19 June 2009)
Misha Collins Non Executive Director (appointed 8 July 2009)
Philip C J Christie Director
Brian J Hurley Chairman (resigned 27 November 2008)
Roderick G Murchison Non Executive Director (resigned 27 November 2008)
Ian Macpherson Non Executive Director (appointed 24 April 2009)
Tony Martin CEO (appointed 25 June 2009)
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
2009 2008 2009 2008
$ $ $ $
Short-term employee benefits 551,760 462,037 425,815 394,537
Non monetary benefit 11,118 13,898 11,118 13,898
Post employment benefits 21,114 11,700 8,964 11,700
Other long-term benefits - - - -
Termination benefits - - - -
Share based payments - 191,257 - 191,257
583,992 678,892 445,897 611,392
(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 Limited, including their personally-related entities, are set out below.
Vested at 30 June 2009
30 June 2009 Balance at
beginning
of period
1 July 08
Granted as
remuneration
Options
exercised
Net change
other
Balance at
end of period
30 June 09
Total Exercisable
Directors
PCJ Christie 3,025,202 - - (300,000) (a) 2,725,202 2,725,202 2,725,202
BJ Hurley 2,500,000 - - (300,000) (a) 2,200,000 (b) 2,200,000 2,200,000
RG Murchison 1,601,408 - - (200,000) (a) 1,401,408 (b) 1,401,408 1,401,408
BNV Tomich 1,500,000 - - (200,000) (a) 1,300,000 (b) 1,300,000 1,300,000
D Pluckhahn 500,000 - - - 500,000 500,000 500,000
M Collins - - - 1,000,000 1,000,000 1,000,000 1,000,000
I Macpherson - - - 4,974,500 4,974,500 4,974,500 4,974,500
(a) On 8 July 2008, the directors transferred between them 1,000,000 of their unlisted options to newly
appointed non executive director Misha Collins.
(b) At date of resignation
57
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2009
14. KEY MANAGEMENT PERSONNEL DISCLOSURE (CONTINUED)
Vested at 30 June 2008
30 June
2008
Balance at
beginning of
period
1 July 07
Granted as
remuneration
Options
exercised
Net change
other
Balance at end of
period
30 June 08
Total Exercisable
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
Dean
Pluckhahn
500,000 - - - 500,000 500,000 500,000
(c) Shareholdings of key management personnel (consolidated)
The number of shares held in the Company during the financial year by each director of Oropa Limited, including
their personally-related entities, are set out below:
Balance
1 July
08
Granted
as
remuneration
On
exercise
of
options
Net
change
other
Directors
balances as
at date of
resigning/
terminated
Balance 30
June 09
30 June 2009 Ord Pref Ord Pref Ord Pref Ord Pref Ord Ord
Directors
PCJ Christie
574,852 - - 50,000 - 624,852
BJ Hurley 741,092 - - - 741,092 N/A
RG Murchison 749,852 - - 100,000 849,852 N/A
BNV Tomich 239,000 - - 1,081,000 1,320,000 N/A
D Pluckhahn - - - - - -
M Collins - - - 17,275,496 - 17,275,496
I Macpherson - - - 9,949,000 - 9,949,000
Balance 1 July 07 Granted as
remuneration
On exercise of
options
Net change other Balance 30 June 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 - - - - - - - - - -
(d) Convertible Note holdings of key management personnel (consolidated)
The number of convertible notes held in the Company during the financial year held by each director of Oropa
Limited, including their personally-related entities, are set out below:
30 June 2009 Balance 1 Jul 2008 Purchased Converted Balance 30 June
2009
Directors
PCJ Christie - - - -
BJ Hurley - - - -
RG Murchison - - - -
BNV Tomich - - - -
D Pluckhahn - - - -
M Collins - - - -
I Macpherson - 20,000,000 - 20,000,000
58
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2009
14. KEY MANAGEMENT PERSONNEL DISCLOSURE (CONTINUED)
The convertible notes are convertible at 2 cents each within 12 months of the issue date. Interest at the rate
of 10% per annum is payable quarterly in arrears. Interest of $7,671.23 was payable to FATS Pty Ltd an
associated entity of Mr Macpherson during the 2009 year.
15. REMUNERATION OF AUDITORS
Consolidated Parent Entity
2009 2008 2009 2008
$ $ $ $
Remuneration for audit or review of the
financial reports of the parent entity or any
entity in the consolidated entity
Stantons International 35,592 29,612 35,592 29,612
Other 16,846 16,700 -
52,438 46,312 35,592 29,612
Remuneration for other services - - - -
16. CONTINGENT ASSETS AND LIABILITIES
The only contingent asset the parent and consolidated entity have is 1,000,000 options exercisable at 20
cents in the company Southern Cross Goldfields Limited. 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.
As set out in the Director’s Report, the Company entered into a Consultancy Agreement with Yellowmoon
Gold Mines Pty Ltd (Yellowmoon) purportedly taking effect on 8 February 2008. The Company considers
that as a consequence of the circumstances in which the Consultancy Agreement was entered into, the
Consultancy Agreement is unenforceable. Yellowmoon considers that the Consultancy Agreement is
enforceable. As at the date of these accounts, the parties are in negotiations to resolve the dispute and a
successful outcome of those negotiations is anticipated. If an amicable resolution is not reached and the
Company’s argument that the Consultancy Agreement is unenforceable is unsuccessful the Company would
have a liability under the Consultancy Agreement for a termination fee of a maximum of $337,750 plus GST.”
17. RELATED PARTIES
Directors and specified executives
Disclosures relating to directors and specified executives are set out in the director’s report and as detailed
in Note 14.
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 Limited 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%.
59
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2009
17. RELATED PARTIES (CONTINUED)
Transactions between Oropa Limited and related parties in the wholly-owned group during the year ended
30 June 2009 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 $2,462,770 in its accounts
for the year ended 30 June 2009 (2008 - $1,237,588) 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
2009 2008
$ $
Non-current receivables (note 4) 14,231,615 11,768,845
Provision for doubtful debts (note 4) (14,231,615) (11,768,845)
- -
An amount of $247,880 (2008 - $247,880) is still outstanding from an advance to B Vijaykumar Chhattisgarh
Exploration Private Ltd, 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.
18. 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
2009 2008 2009 2008
$ $ $ $
Not later than one year 801,841 618,205 - -
Later than one year, but not later than 2
years
1,281,657 1,878,977 - -
2,083,498 2,497,182 - -
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 2009, PT Sorikmas Mining had fulfilled its expenditure commitments in respect of the General
Survey Period and Exploration Period.
60
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2009
18. EXPENDITURE COMMITMENTS (CONTINTUED)
Expenditure Commitments in Malawi
Oropa holds three granted Exclusive Prospecting Licenses in Malawi with a combined area of 3,648 km2.
Proposed expenditure commitments for the three leases over the remainder of the two year license periods
are as follows:
Mzimba Chitunde Chinzani
Northwest Project Project Project
Year 1 US$343,995 US$84,680 US$216,410
Year 2 US$507,000 US$178,000 US$346,100
The subsidiary Oropa Exploration Pty Ltd has ownership of the Malawi project. In 2009 the Company did not
spend all its year two commitment as detailed above.
Operating Leases
Commitments for minimum lease payments in relation to non cancellable operating leases are payable as
follows:
Consolidated Parent Entity
2009 2008 2009 2008
$ $ $ $
*Not later than one year 46,575 46,575 46,575 46,575
Later than one year, but not later than 2
years
- 46,575 - 46,575
46,575 93,150 46,575 93,150
*The Company exercised an option to extend the lease from 1 July 2007 for a period of three years.
Other Commitments
The Company currently has no other capital commitments as at 30 June 2009.
Capital Commitments
There were no outstanding capital commitments not provided for in the financial statements of the Company
as at 30 June 2009 or 30 June 2008.
61
19. INVESTMENTS IN CONTROLLED ENTITIES
Controlled Entities: Class of
Shares
Cost of Parent Entity’s
Investment
Equity Holding
2009 2008 2008 2009
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 Ltd
(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) (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 2009 (2008: AUD $98,451).
20. 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
2009 2008 2009 2008
$ $ $ $
Cash at Bank 917,881 407,241 882,211 185,283
917,881 407,241 882,211 185,283
62
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2009
20. 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
2009 2008 2009 2008
$ $ $ $
Operating (loss) after income tax (2,895,178) (3,907,994) (2,590,479) (2,882,986)
Non Cash Items
Depreciation 31,933 18,217 12,574 15,010
Provision for doubtful debts - - 2,462,770 1,237,588
Exploration costs written off 1,905,407 2,178,983 276,860 127,421
Convertible Note Costs 181,199 - 181,199 -
Plant and equipment written off - 4,716 - 4,716
Share based payments - 191,257 - 191,257
Foreign exchange loss (8,981) 883,477 (1,151,831) 724,139
Proceeds on sale of interest in Golden
Valley JV -
(40,000) - (40,000)
Diminution in investments 32,897 - 27,783 -
Other - 318 - 318
Change in operating assets and
liabilities, net of effects from purchase
controlled entity
(Increase) / decrease in receivables 70,176 (16,323) (16,083) (14,880)
(Increase)/ decrease in prepayments 11,118 - 11,118 -
Increase / (decrease) in payables 21,392 2,707 210,942 (56,056)
Increase / (decrease) in provisions 22,881 76,616 (17,065) 23,326
Increase / (decrease) in FX (5,825) (107,240) - -
Net cash (outflow) from operating
activities (632,981) (715,266) (592,212) (670,147)
21. EARNINGS PER SHARE
Consolidated Entity
2009 2008
(a) Basic and diluted loss per share (0.01) (0.02)
(b) Weighted average number of shares outstanding
during the year used in the calculation of basic earnings
per share 208,411,068
None of the options referred to in Note 12 have not been included in the determination of basic earnings
per share. 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.
63
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2009
21. EARNINGS PER SHARE (CONTINTUED)
Reconciliation of earnings used in calculating basic earnings per share
Consolidated Entity
2009 2008
Net Loss (2,895,178) (3,907,994)
22. JOINT VENTURES
The consolidated entity has interests in the following unincorporated exploration joint ventures:
Joint Venture Joint Venture
Partner
Principal
Activities
Interest
2009
Interest
2008
Aberfoyle Pungkut
Investments Ptd Ltd
Pungkut
Indonesian
Government
Mineral
exploration
75% 75%
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 18.
The projects detailed below, the consolidated entity and the parent entity once held an equity interest in
the projects but subsequently has sold them, however they have retained the right to receive royalties
on the projects.
Parent Entity
Oropa Limited
Project Principal
Activities
Interest
2009
Interest
2008
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
Project Principal
Activities
Interest
2009
Interest
2008
Mulgabbie Mineral
exploration
2% Royalty 2% Royalty
64
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2009
23. 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
2009 2008 2009 2008
Financial Assets $ $ $ $
Cash and cash equivalents 917,881 407,241 882,211 185,283
Trade and other receivables 112,154 118,741 61,206 27,961
Other financial assets 13,550 41,333 13,550 41,333
Security deposits 80,105 157,832 43,864 49,450
Total Financial Assets 1,123,690 725,147 1,000,831 304,027
Financial Liabilities
Trade and other payables 305,771 228,161 262,706 43,267
Convertible Note 1,479,335 - 1,479,335 -
Other liabilities 23,857 23,864 23,857 23,864
Total Financial Liabilities 1,808,963 252,025 1,765,898 67,131
Credit Risk
The Company’s maximum exposure to credit risk at the reporting date was as detailed below:
Consolidated Parent
2009 2008 2009 2008
Financial Assets $ $ $ $
Cash and cash equivalents 917,881 407,241 882,211 185,283
Trade and other receivables 112,154 118,741 61,206 27,961
Other financial assets 13,550 41,333 13,550 41,333
Security deposits 80,105 157,832 43,864 49,450
Total Financial Assets 1,123,690 725,147 1,000,831 304,027
Impairment Losses
No impairment loss was recognised in either 2008 or 2009 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.
65
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2009
23. FINANCIAL INSTRUMENTS (CONTINUED)
The carrying amount of the Consolidated Entity’s foreign currency denominated assets and
liabilities at the reporting date in Australian dollars is as follows:
Liabilities Assets
2009
$
2008
$
2009
$
2008
$
Australian Dollars 497,799 506,312 147,035 466,063
The table below details financial assets and liabilities of the consolidated entity and the parent company
exposed to foreign currency risk.
Consolidated Parent
2009
$
2008
$
2009
$
2008
$
Cash and cash equivalents
SGD 121,013 436,528 - -
Trade and other payables
SGD 50,525 156,681 - -
Sensitivity Analysis
The table below summarises the impact of a 10 per cent weakening/strengthening of the
Australian dollar against the Singaporean dollar in the movement of the financial assets and
liabilities listed in the previous table.
Consolidated Parent
Impact on post-tax profit and accumulated
losses
AUD 2009 2008 2009 2008
SGD +10%- - - -
SGD -10 - - - -
Consolidated Parent
Impact on equity reserve only AUD 2009 2008 2009 2008
SGD +10% 6,408 25,440 - -
SGD -10% (7,832) (31,095) - -
24. EVENTS OCCURRING AFTER REPORTING DATE
On 22 September 2009 the Company released an ASX announcement to advise that they had secured
at $6.47 million funding package to fund the ongoing feasibility study of its 75% owned Sihayo Gold
Project in Indonesia. The fundraising is being managed by Singapore based Mining Advisory
Consultants Pte Limited (“MAC”) and shall be provided via a series of staged placements and short term
options as outlined in the announcement.
66
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2009
25. SEGMENT INFORMATION
Primary Reporting – geographical segments
The geographical segments of the consolidated entity are as follows:
2009 Australia Africa South East India Unallocated Consolidated
Asia
$ $ $ $ $ $
Other revenue 11,378 - 8,982 - - 20,360
Segment results (929,205) (187,330) (1,622,953) (45,254) (110,436) (2,895,178)
Loss from ordinary activities before income tax (2,895,178)
Income tax expense -
Net loss (2,895,178)
Segment assets 1,044,918 10,575 147,035 3 - 1,202,531
Segment liabilities 1,784,375 - 524,700 - - 2,309,075
Investments 13,550 - - - - 13,550
Acquisition of property, plant
and equipment - - 6,147 - - 6,147
Mineral exploration expenditure
written off (6,921) 172,091 1,627,418 39,928 15,264 1,847,780
Depreciation expense 12,574 3,193 - - - 15,767
67
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2009
25. SEGMENT INFORMATION (CONTINUED)
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
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.
68
DIRECTORS’ DECLARATION
In accordance with a resolution of the directors of Oropa Limited, I state that:
1. In the opinion of the directors:
(a) The financial statements, notes and the additional disclosures included in the directors’ report
designated as audited, of the Company and of the consolidated entity are in accordance with the
Corporations Act 2001, including:
(i) giving a true and fair view of the Company’s and consolidated entity’s financial position as at
30 June 2009 and of their performance; and
(ii) complying with Accounting Standards and Corporations Regulations 2001; and
(b) There are reasonable grounds to believe that the Company will be able to pay its debts as and when
they become due and payable.
2. This declaration has been made after receiving the declarations required to be made to the directors in
accordance with section 295A of the Corporations Act 2001 for the financial year ended 30 June 2009.
On behalf of the Board
MISHA A COLLINS
Director
25 September 2009



72
ADDITIONAL SHAREHOLDER INFORMATION
The following additional information dated 25 August 2009 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 445 14 14
1,001-5,000 913 11 11
5,001-10,000 307 13 5
10,001-100,000 472 11 20
100,001 and above 215 18 20
Total 2,352 67 70
(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
2 TWENTY LARGEST SHAREHOLDERS AND OPTION HOLDERS
Names No. of
shares %
ANZ Nominees Limited 24,636,832 9.67
Karel Abram Pty Ltd 21,800,000 8.56
Insight Capital Management Pty Ltd 16,294,039 6.39
Gemtwin Pty Ltd 10,600,000 4.16
FATS Pty Ltd 9,872,000 3.87
NEFCO Nominees Pty Ltd 9,204,008 3.61
Citicorp Nominees Pty Ltd 9,143,782 3.59
Ganesh International Limited 6,430,120 2.52
Base Asia Pacific Limited 5,454,545 2.14
Nathan Featherby 5,000,000 1.96
Roseland Asset Pty Ltd 5,000,000 1.96
Waferbell Ltd 4,460,990 1.75
Ron Lees & Associates Pty Ltd 4,154,963 1.63
Port Asset Pty Ltd 4,000,000 1.57
Macquarie Bank Limited 3,722,222 1.46
HSBC Custody Nominees (Australia) Pty Ltd 2,883,760 1.13
Jemaya Pty Ltd 2,400,000 0.94
Barry Sydney Patterson 2,372,337 0.93
John Charles H Clark 2,096,079 0.82
Margaret Ann Lees 1,858,249 0.73
Total 151,383,926 59.39
73
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%
Zipparo Holdings Pty Ltd 300,000 2.35%
D & N Tsoutsoulis A/c 300,000 2.35%
Buildstar Pty Ltd 250,000 1.95%
Berne No 123 Nominees Pty Ltd 221,000 1.73%
Michael K Mazalevskis 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 %
Nathan Featherby 4,156,198 31.30%
Forza Family Pty ltd 2,809,497 21.16%
Shane Anthony Heywood 1,000,000 7.53%
Ron Lees & Associates Pty Ltd 748,073 5.63%
Berne No 132 Nominees Pty Ltd 628,311 4.73%
Georg Luzukic 548,000 4.13%
Goffacan Pty Ltd 521,000 3.92%
Frank Joseph Nigro 500,000 3.76%
Ganesh International Limited 269,950 2.03%
Michael and Linda Jolob 250,000 1.88%
Maria Leontina Fernandes 238,220 1.79%
Stephen John Anderson 207,150 1.56%
Tina Margaret Gubbings 200,000 1.51%
Kenneth Eason Higgs 150,000 1.13%
Lewis Staples 120,000 0.90%
Merimont Nominees Pty Ltd 116,000 0.87%
ANZ Nominees Limited 110,000 0.83%
Peter Bicknell 102,400 0.77%
Scaneast International Ltd 74,000 0.56%
Xiaolu Zhu 69,000 0.52%
12,817,799 96.52%
74
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 24,636,832 9.67
Karel Abrams Pty Ltd 21,800,000 8.56
Insight Capital Management Pty Ltd 16,294,039 6.39
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 SECURITIES EXCHANGE LISTING
Oropa Limited shares are listed on the Australian Securities Exchange Limited. The home exchange is
the Australian Securities Exchange (Perth) Limited.
75
SUMMARY OF TENEMENTS HELD BY COMPANY
FOR THE YEAR ENDED 30 JUNE 2009
Project Name Tenement Approval Expiry Area Equity
Date Date (ha) %
INDIA
Block D-7 22.01.00 4600km2 9(1)
INDONESIA
Pungkut 96PK0042 31.05.96 66,300 75
WESTERN AUSTRALIA
Mt. Keith
M53/490 11.06.04 10.06.25 582.00 0 (2)
M53/491 11.06.04 10.06.25 621.00 0 (2)
EXCELSIOR RESOURCES PTY LTD
Mulgabbie
ML28/364 U/A 0(2)
PL28/1078 U/A 0(2)
PL28/1079 U/A 0(2)
PL28/1080 U/A 0(2)
PL28/1081 U/A 0(2)
PL28/1082 U/A 0(2)
NOTES
(1) Option to increase interest to 18%
(2) 2% nett smelter royalty
* Graticular Blocks
U/A Under Application