OROPA LIMITEDACN 009 241 374HALF YEAR FINANCIAL REPORT31...

OROPA LIMITED
ACN 009 241 374

HALF YEAR FINANCIAL REPORT
31 DECEMBER 2008

OROPA LIMITED 2
HALF YEAR REPORT
OROPA LIMITED AND CONTROLLED ENTITIES
ACN 009 241 374
CONTENTS
DIRECTORS’ REPORT ........................................................................................ 3
CONSOLIDATED INCOME STATEMENT .......................................................... 17
CONSOLIDATED BALANCE SHEET ................................................................. 18
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY .............................. 19
CONSOLIDATED CASH FLOW STATEMENT ................................................... 20
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ........................ 21
DIRECTORS’ DECLARATION ............................................................................ 28
INDEPENDENT REVIEW REPORT .................................................................. 29
AUDITOR INDEPENDENCE DECLARATION .................................................... 31
OROPA LIMITED 3
HALF YEAR REPORT
OROPA LIMITED AND CONTROLLED ENTITIES
ACN 009 241 374

DIRECTORS’ REPORT
For the Half Year Ended 31 December 2008
Your directors present their report on the consolidated entity consisting of Oropa Limited (“Oropa”)
and the entities it controlled at the end of, or during the half-year ended 31 December 2008.
DIRECTORS
The following persons were directors of Oropa during the whole of the half-year and up to the date of
this report:
BNV Tomich
PCJ Christie
MA Collins
Director Brian Hurley was removed from the board as voted by shareholders at the Company’s annual
general meeting on 27 November 2008.
RESULT
The net operating loss for the half-year ended 31 December 2008 was $1,506,340 and for the half
year ended 31 December 2007 the loss was $1,823,215.
REVIEW OF OPERATIONS
Corporate
The Company’s Annual General Meeting was held on 27 November 2008, with the majority of
resolutions being passed. However, two of Oropa’s non-executive directors were not re-elected as a
consequence of some shareholders expressing their disappointment with the company’s
performance. These same shareholders also indicated their objection to the adoption of the
Remuneration Report and this has been duly noted by the board and referred to the Remuneration
Committee for further consideration. On 28th November the Company announced the appointment of
Mr Bruce Tomich as Oropa’s new interim Chairman. More recently, on 23 February 2009, Bruce
Tomich was appointed to the position of Chief Executive Officer responsible for the day to day running
of the Company, and Phil Christie, who remains a director of the Company, takes on a specific
consultancy role.
After lengthy negotiations, the Company announced on 31st December that it had appointed
Blackwood Capital Limited (“Blackwood”) as lead manager to complete a funding package for Oropa
of up to $2 million prior to 31st March 2009. Details of the funding package were finalised and
provided to the market on 19th February 2009 with a Notice of Meeting and Explanatory Memorandum
dispatched to the Company’s shareholders to convene a General Meeting on 24 March 2009.
The Blackwood funding package is designed to assist with financing Oropa’s ongoing exploration and
development programs at its 75% owned 1 million ounce inferred resource at the Pungkut gold project
in Indonesia, and working capital.
At a General Meeting of shareholders held on 12th May 2008, shareholders approved the issue of up
to 13,280,376 new listed 2011 Options at the issue price of $0.002 per Option to the holders of
options that expired unexercised on 31 December 2007. Shareholders also approved the placement
of the shortfall (if any) by directors at their discretion. The Options Offer Prospectus was dispatched to
the relevant holders on 8 August 2008 and a total of 8,510,285 2011 Options were applied for before
the closing Date (22 August 2008). The shortfall was issued to Blackwood as part of Blackwood’s
commissions covering a series of fund raisings completed during the second half of 2008, from which
the Company raised $803,500 before costs via placements of 521,455 shares at 5.4655 cents per
share, 8,090,907 shares at 5.5 cents per share and 6,600,000 shares at 5 cents per share to
sophisticated investor clients of Blackwood.
OROPA LIMITED 4
HALF YEAR REPORT
These funds were applied towards ongoing exploration activities at the Pungkut project, the recommencement
of sampling programs in Malawi and working capital.
EXPLORATION
Indonesia
Pungkut Gold Project, Sumatra (75%)
A fifth extension to the Exploration Stage of the PT Sorikmas Mining (“Sorikmas”) owned 7th
Generation Pungkut Contract of Work (“Pungkut”) was approved by the Indonesian government under
a Decree Letter to Sorikmas by the Minister of Energy and Mineral Resources in Jakarta and is valid
until 6th October 2009. During the extension period, Oropa plans to advance the development of the
Sihayo 1 North and Sambung Inferred Resources towards indicated Resource status and increase
total gold resources within the general area of Sihayo 1 North.
Positive results were returned from the Scoping Study completed by SRK Consultants (Australasia)
Pty Ltd (“SRK”) in late November 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 is indicated
at prevailing gold prices (>US$800 per ounce). Additional resources would significantly boost the
project’s economic robustness and excellent drill intersections at areas adjacent to the Inferred
resource at the Old Camp Area indicate excellent potential to add significantly to the current resource
base. Consequently, further work is warranted to advance the project to a Bankable Feasibility Study
(“BFS”) stage, the next key step towards mine development and production.
Drilling re-commenced at Hutabargot Julu in the South Sarahan area in August. Previous soil
geochemical sampling had outlined a large gold and multi-element anomaly at the interpreted
intersection of the Sarahan and Ali veins, while follow up mapping revealed massive pervasive
silicification and significant gold in rock chips and a reconnaissance shallow drilling program was
initiated to test for near-surface mineralisation. Deeper drilling is planned to test the intersection of
Sarahan and Ali veins, before returning to the Ali vein to follow up on the bonanza grade intersection
in HUTDD018. However, owing to the downturn in market conditions and the difficulty in raising
equity funds, drilling at Hutabargot Julu was suspended during the December quarter, with one of the
two rigs on site being de-mobilised in mid-November.
Oropa’s principal activities during the latter part of the reporting period were directed towards the
completion of the Scoping Study, as well as follow up exploration on regional targets identified by
earlier stream sediment sampling in the North Block, and the bonanza grade epithermal float rock
previously discovered at the Nalanjulu and Nalanjae prospects in the South Block.
Figure 1: Pungkut project area North Sumatra, showing principal prospects
OROPA LIMITED 5
HALF YEAR REPORT
Exploration Activities – North Block:
Sihayo 1 North:
�� Scoping Study into the mining economics of Sihayo 1 North and Sambung Inferred
Resources completed with positive results
�� Initial exploration drilling at the Old Camp Area
Hutabargot Julu:
�� Exploration drilling at Sarahan South
Regional:
�� Follow-up of regional stream-sediment anomalies
Figure 2: Sihayo – Sambung – Hutabargot Julu gold trend, North Block, Pungkut Project
Scoping Study
Oropa commissioned SRK to commence a Scoping Study during August 2008 that was designed to
investigate the approximate costs and economics of mining and processing the combined Sihayo 1
North and Sambung Inferred Resources. The results confirmed the potential to develop the two
Inferred Resources into a profitable mining operation (Table 1). The study was based on the
treatment of 1Mtpa using a conventional Carbon in Pulp (CIP) circuit with open pit mining of the two
resources. Specific assumptions and outcomes from the study (100% of project) are as follows:
Operating Costs
At the time of the study, significant operating cost pressures were being experienced by the mining
industry as a consequence of a number of factors, including a booming 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
cash operating costs announced by three of the world’s largest gold producers; Barrick, Newmont and
AngloGold-Ashanti.
OROPA LIMITED 6
HALF YEAR REPORT
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 %
Study Parameters
An assessment of the Sihayo 1 North and Sambung Inferred Resources totalling 13.2Mt at 2.4 g Au/t
for 1.01 Moz of contained gold (Table 2) was undertaken by SRK. It should be noted that the study
was 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 Inferred Mineral Resources
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
SRK 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 was based on utilising new plant and equipment. Power costs were supplied by Oropa
based on estimates for contract power generation, or grid power.
Mining and Processing
The Scoping Study presumed:
• Open pit mining with drill and blast methods, by contractor owned and operated mining fleet;
• An average stripping ratio of 3.8 to 1;
• Indicative production scheduling aimed at providing 1 million tonnes of mineralised inventory
per year to the process plant;
• A 10 year life of mine/milling schedule;
• Processing conducted with crushing, grinding, and conventional leaching using CIP treatment;
and
• Gold recovery of 80% (based on metallurgical testwork performed to date)
OROPA LIMITED 7
HALF YEAR REPORT
Capital Costs
Total capital expenditure for new equipment and infrastructure was estimated 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, which indicate that the final capital expenditure
could be reduced to between US$40m and US$50m prior to contingencies, but including all owners’
costs and working capital.
At present, the above capital expenditure scenarios are indicative and actual capital expenditure
would not be established until the completion of a BFS.
Future Development
SRK concluded 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 achieved from 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 program of infill drilling at Sihayo 1 North and Sambung.
The drilling results achieved at the Old Camp Area which are not presently included within the existing
Sihayo 1 North 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 increase annual gold production.
Quality Assurance and Quality Control
Formal documentation was made for the existing and historical procedures used for Quality Control at
Pungkut and procedures not commensurate with best practices are being refined. Objectives have
been identified and formal documentation of the Quality Control Protocol is planned.
Oropa uses the database program DataShed which is specifically tailored for use by minerals
resources companies. Implementation of the database management has been an on-going process
to ensure that all laboratory data is captured and that quality control procedures are managed to the
high standards demanded in today’s industry. The aim is to ensure that proper protocols are in place
such that laboratory data obtained during the coming infill drilling programs at Sihayo 1 North and
Sambung is at the standard required to achieve Indicated Resource status.
Sihayo 1 North
Final assays returned from the drilling at the North Western Extension in June indicated that the
mineralised jasperoid is thinner in that area. More encouragingly, exploration programs at the Old
Camp Area (Figure 3) to the north-east of Sihayo 1 North that was previously interpreted to have
been closed off by a fence of drill holes completed by Oropa in 2005 encountered significant gold
intersections in both regolith and primary jasperoid mineralisation. A series of test pits dug to depths
of approximately 7m outlined significant gold in the regolith profile. Subsequently, drilling was initiated
to test the extent of the regolith and a possible source of the mineralisation. Nine holes were drilled
(including SHDD119, which failed to reach target depth and was replicated by nearby SHDD120).
Significant near surface gold mineralisation was encountered in both thick regolith cover, and in-situ
jasperoid developed within silty-limestone over a 200m strike length. The silty-limestone appears to
have formed in a deep channel, situated behind what may have been a limestone reef (now marble)
to the north-east of the main resource (Figure 4). The south-western contact of the silty-limestone is
bounded by a disconformity with volcanics. This channel interpretation allows for narrow but laterally
continuous mineralisation that may pinch and swell along its strike. Further drilling in both directions
will be undertaken as there is no outcrop in the area, with host bedrock either obscured by regolith or
Tertiary sediments.
OROPA LIMITED 8
HALF YEAR REPORT
Figure 3: Sihayo 1 North Inferred Resource outline and Old Camp Area exploration targets
Figure 4: Old Camp Area geological cross section
Similar style ‘jasperoid in silty-limestone’ has also been observed 600m along strike to the north-west
at Sihayo 2, where extensive outcropping jasperoid was previously drill tested by Oropa in 2004. That
program comprising seven widely spaced holes largely failed to intersect the outcropping
mineralisation at depth.
OROPA LIMITED 9
HALF YEAR REPORT
Further drilling at Sihayo 2 was not warranted at the time due to the lower grades encountered in
outcrop. However, the Old Camp Area drilling indicates the potential exists for this higher grade
mineralisation to extend to Sihayo 2 and possibly beyond. Additionally, 400m along strike to the
south-east of the Old Camp Area, drill hole SHDD023 encountered 4.2m @ 3.36 g/t Au from 10.55m
in jasperoid at the Tertiary sediment – Permian limestone contact (Table 3).
Table 3: Sihayo 1 North/Old Camp Area Significant Drill Intersections
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
Although no drilling was undertaken at Sihayo 1 North during the half year, a preliminary study was
completed to establish the requirements for infill drilling at both Sihayo 1 North and Sambung to
achieve Indicated Resource Status (Figures 5 & 6).
Figure 5: Sihayo 1 North block model and proposed infill drilling (local grid)
OROPA LIMITED 10
HALF YEAR REPORT
Figure 6: Proposed Sambung Drill-Out Locations
Hutabargot Julu
Hutabargot Julu was Oropa’s primary regional exploration target throughout most of 2008, with drill
programs testing intermediate-sulphidation epithermal quartz and massive silica alteration in veins
interpreted to extend over a strike length of up to 3km. Results from Oropa’s earlier drilling included a
vein intersection of 5m @ 37.7 g/t Au from 47m (Ali Vein - HUTDD018) supporting the potential of the
area to host rich deposits as exist elsewhere in Indonesia; Newcrest’s Gosowong and Kencana mines
on Halmahera Island and Antam’s Pongkor mine in West Java.
During the reporting period, encouraging multi-element assay results were obtained from the
Sarahan - Ali soil geochemical sampling program. This program was generated on 100m line
spacings with 50m spaced samples, and was implemented to establish the location of strongest
alteration zones in the area.
The soil geochemistry has outlined several anomalous areas; the most prominent being at Sarahan
South, located south of the Simalagi River. The Sarahan South (plus 0.1 g/t Au) soil anomaly extends
over 150m, with maximum values of 12.8 g/t Au and 22 g/t Ag. Elevated anomalous lead, silver,
arsenic, antinomy and molybdenum values are indicative of a major fluid up-welling zone and a high
priority target for deep mineralisation (Table 4).
Table 4: Best results Hutabargot Julu soils
Geological mapping following up on two plus 5 g/t Au rock outcrop samples situated within the
Sarahan South anomaly identified massive silica alteration and veining. Anomalous gold and multielement
values were also confirmed in soils at the Sarahan Vein, with a maximum value of 2.78 g/t Au
associated with a broader (plus 0.1 g/t Au) soil geochemistry halo over the northern portion of the
Sarahan Vein. At the North Ali Vein, high values in soils of 3.4 g/t Au and 1.17 g/t Au warrant follow
up geochemical sampling and geological mapping of this target area. A weak multi-element anomaly
located south-east of the 5m @ 37.7 g/t Au intersected in Ali Vein hole HUTDD018 will be drill tested
for extensions of this bonanza grade mineralisation.
Subsequent to the completion of the soil geochemistry and geological mapping programs, drilling
commenced at Sarahan South Vein targeting the massive silica alteration. Four reconnaissance
shallow drill holes were completed to test for near surface mineralisation. All drill holes intersected
significant mineralisation within the vein (Table 5, Figures 7 & 8).
OROPA LIMITED 11
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Table 5: Sarahan South Vein Significant Drill Intersections
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
Figure 7: Hutabargot Julu Prospect plan and diamond drill hole locations
OROPA LIMITED 12
HALF YEAR REPORT
Figure 8: Sarahan South Vein combined sections for 5700mN and 5600mN
Further deeper drilling is planned in the Sarahan South area to test the interpreted intersection of the
Sarahan and Ali Veins, which also has a coincident multi-element surface geochemical anomaly, and
is along-strike from the bonanza grade intersection in hole HUTDD018 encountered on the Ali Vein.
Prior to the re-commencement of drilling, a petrological study is scheduled to obtain further
information regarding the vein style, fluid inclusion composition and mineralogy to better understand
the mineralisation and to assist with future drill target selection.
Regional Activities - North Block:
Stream-sediment sampling was conducted over several anomalies identified in the original Aberfoyle
Resources Ltd regional exploration program, but which had not previously been followed up by Oropa.
Areas of alteration and significant thicknesses of very poorly gold-mineralised jasperoid were
discovered.
Regional Activities - South Block:
Traverses of streams were conducted in the Nalanjae area in the far south of the South Block.
Previous follow-up of a stream-sediment anomaly led to the discovery of epithermal vein material in
stream-float grading 19.9 g/t Au and 1,170 g/t Ag. Swarms of near-barren quartz veins in outcrop
were later discovered in a number of nearby locations. The origin of the high grade mineralised
epithermal float remains unknown and further soil sampling is warranted.
Traverses of streams were made at the Nalanjulu prospect nearby to Nalanjae and appraisal of a
stream-sediment anomaly led to the discovery of a large boulder of epithermal stream-float for
which a composite sample returned 60.5 g/t Au and 777 g/t Ag. The boulder has subsequently
been completely chipped away and dollied by local villagers and it was reported that 2 to 3kg of
gold was recovered from that one boulder. Soil sampling is also warranted to locate the source of
this material.
OROPA LIMITED 13
HALF YEAR REPORT
Malawi
The global economic downturn has had a dramatic effect on the ability of small and large exploration
and mining companies to raise working capital to explore and develop their respective mineral
projects, both in Australia and overseas. Oropa, like most other companies has been forced to scale
back on its exploration programs and focus on its core project, while actively seeking new funding
sources. Consequently, limited work was undertaken in Malawi during the reporting period, although
an in-house review of all previous work was undertaken.
Oropa holds 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”) niobium-uranium-tantalum-zircon multi-commodity Kanyika
deposit in central Malawi.
Additionally, OEPL has entered into separate Memorandum of Understandings (“MOUs”) with two
local EPL holders to joint venture 90% interests in exploration and mining for uranium and other
minerals (excluding coal) in these two contiguous EPLs to the north of Paladin Energy Ltd’s
(“Paladin’s”) Kayelekera uranium deposit (“Kayelekera”). The 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 9). Negotiations
are ongoing with the two vendors to advance the MOUs to formal Shareholder Agreements.
Figure 9: Malawi EPLs Location Map
OROPA LIMITED 14
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Mzimba Northwest Project (100%)
Exploration in Malawi re-commenced in late July with a follow up geochemical sampling program
being undertaken at Mzimba Northwest. This program concentrated on the Emoneni-Jandalala
district in the north-eastern sector of the EPL (Figure 10) where a north-south striking ridge coincident
with airborne uranium radiometric anomalies has been interpreted to be associated with the Mafingi
quartzites. These quartzites, formed from the erosion of the basement sediments during the
Proterozoic era, filled valleys, basins and other topographic low areas. Subsequently, the entire
Proterozoic sequence has experienced deformation and high grade metamorphism. The contact
between the quartzites and gneiss is unconformable, and has been associated with uranium
mineralisation. (Sixty eight stream sediment samples, 14 panned concentrate samples, and 26 rock
chip samples were collected earlier in the year in the Emoneni-Jandalala area to complete the initial
exploration program for this target, details of which were reported in the March Quarterly Report.)
Figure 10: Emoneni Target Area
This second phase reconnaissance program involved follow up on the initial geochemical sampling,
geological investigations and ground radiometric surveys. The new program covered parts of the
Emoneni hills where previous exploration had yielded geochemically anomalous U308 values at or
above 100 ppm from the initial stream sediment survey. It included the collection of stream sediment
samples upstream of the known anomalies in order to define their provenance and a pitting program
designed to investigate regolith in anomalous areas. Ancillary survey work included ground
radiometric surveying using a hand held gamma ray spectrometer.
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The pitting program was carried out on the western flank of the Emoneni hills. A 6km baseline
was established along with two survey lines set on either side of the baseline. This configuration
was used for reconnaissance radiometric surveying at 500m intervals along the survey lines and
pits were sunk up to 3m deep along the baseline at 1000m intervals to investigate the soil profile
and collect soil and rock chip samples at 1m depth intervals from each pit. The regolith profile
proved to be deep as none of the pits were successful in reaching bedrock. The encouraging
results from the radiometric surveying are yet to be considered for follow up work.
A random radiometric survey carried out at the top of the Emoneni hills identified two uraniferous
rock types which are potentially the provenance of the radioactive sediments. The feldspathicquartz-
biotite gneiss is a very coarse grained leucocratic rock. K-Feldspar constitutes 60% of the
rock with grain sizes of up to 30mm. White quartz is the second dominant mineral and is uniform
throughout the package. The biotite is medium to coarse grained. The quartz-biotite gneiss is
characterised by distinct bands of coarse grained clear quartz up to 10mm in diameter, separated
by thin bands of biotite. It also contains minor muscovite and plagioclase feldspar. The total
radiometric readings in the vicinity of these rock types averaged 2,000cpm. Rock chip samples
were collected from these outcropping rocks.
A unique type of vegetation was also observed on the western side of the Emoneni hills towards
the Kawiruwiru River. This pocket of vegetation is similar to areas underlain by Karroo sandstones
as observed in other parts of Africa and in the Karroo sandstones of the Ngana area in the north
of Malawi. Pits were dug in the area, but the bedrock could not be reached due to hardness of
the ground and the thickness of the overburden. However, the soils recovered from these pits
were rich in quartz grits and pebbles suggesting quartz rich bedrock.
Seventy six samples, including 4 soil samples, 15 rock chip samples and 57 stream sediment
samples were collected during this program. The results of these analyses are to be interpreted in
Perth before another field program is finalised. Based on field observations from the second
program, broader based ground radiometric survey, gridding and soil sampling on the western
side of the Emoneni hills is warranted to determine the western extent of the anomaly and the
trend of the potential mineralisation, along with a ground radiometric survey and geological
validation of geochemically anomalous eastern and southern portions of the Emoneni hills area.
Chizani Project (100%)
This 1,283km2 Chizani Project area (EPL0223/2007) is situated adjacent to Globe’s niobiumuranium-
tantalum-zircon multi-commodity Kanyika deposit hosted by alkalic granitoid and
pegmatitic zones, and also lies adjacent to tenements held by CC Mining SA. The EPL is
considered to offer uranium exploration potential for hydrothermal uranium targets and is currently
being assessed as part of a remote sensing study designed to provide for the selection and
ranking of target areas for future ground exploration for uranium and other minerals. The proximity
of Chizani to Kanyika provides Oropa with a nearby niobium-uranium-tantalum and zircon deposit
model to apply to exploration search parameters within the Chizani area.
A Landsat Mapping Interpretation of the Chizani project area was completed during the reporting
period, with the intention being to map the geology of the area and provide uranium targets for
further exploration (Figures 11 & 12). Sixteen exploration targets were identified from the survey,
based on the Landsat mapping in conjunction with the airborne radiometric data. High uranium
counts occur in a number of areas which will constitute the initial work programs to be undertaken
at Chizani. The report recommends that although focus should be on uranium exploration, the
area is also considered to be favourable for other minerals such as base metals and gold, while
the tectonic setting of the area is also considered to be favourable for diamondiferous kimberlite
exploration. More interpretive work will be undertaken.
OROPA LIMITED 16
HALF YEAR REPORT
Ngana and Ngana East Projects
Early in the reporting period cordial discussions were held with the current holders of the
contiguous Ngana and Ngana East EPLs, located some 20km to the north of Paladin’s Kayelekera
uranium mine (currently in start-up mode). Oropa has entered into Memorandums of
Understanding with both EPL holders and is in negotiations to advance these MOUs to more
formal Shareholder Agreements. The two EPLs currently granted for coal exploration and mining
are in a strategic location, containing basins of Karroo sediments, host rocks of the Kayelekera
uranium deposit.
AUDITOR’S INDEPENDENCE DECLARATION
A copy of the auditor’s independence declaration as required under section 307C of the Corporations
Act 2001 is set out on page 31.
Signed in accordance with a resolution of the Board of Directors.
BRUCE N TOMICH
Director
13 March 2009
Figure 12: Chizani Project Area Malawi
Radiometric Contours Uranium
Figure 11: Chizani Project Area Malawi
Geology
OROPA LIMITED 17
HALF YEAR REPORT
OROPA LIMITED AND CONTROLLED ENTITIES
ACN 241 374
CONSOLIDATED INCOME STATEMENT
For the Half Year Ended 31 December 2008
CONSOLIDATED
31.12.2008 31.12.2007
Note $ $
Other revenue 3 3,746 13,925
Total Revenue 3,746 13,925
Corporate secretarial expenses (37,245) (29,675)
Depreciation 3 (7,936) (7,153)
Diminution in the value of investments (32,897) (-)
Directors’ fees (8,791) (-)
Employee benefits expense (77,473) (63,139)
Exchange rate loss (-) (223,292)
Exploration expenditure written off 3 (1,099,219) (1,289,133)
External consultancy expenses (114,257) (99,317)
Insurance expenses (28,167) (16,329)
Legal costs (5,900) (1,391)
Postage (5,149) (4,619)
Printing and stationary (11,660) (11,536)
Rates and taxes (4,281) (5,847)
Rental expense (27,139) (22,257)
Travel and entertainment (21,040) (19,510)
Other expenses (28,932) (43,942)
Profit/(Loss) before income tax 3 (1,506,340) (1,823,215)
Income tax expense - -
Loss after income tax (1,506,340) (1,823,215)
Loss attributable to members of Oropa Limited (1,506,340) (1,823,215)
Basic loss per share (cents per share) (0.75) (1.21)
Diluted earnings per share is not disclosed as this
would not reflect an inferior position.
The accompanying notes form part of these financial statements.
OROPA LIMITED 18
HALF YEAR REPORT
OROPA LIMITED AND CONTROLLED ENTITIES
ACN 009 241 374
CONSOLIDATED BALANCE SHEET
As at 31 December 2008
CONSOLIDATED
Note 31.12.2008 30.06.2008
$ $
Current Assets
Cash and cash equivalents 8 98,174 407,241
Trade and other receivables 80,134 147,625
Financial assets 13,550 41,333
Total Current Assets 191,858 596,199
Non-Current Assets
Plant & equipment 94,459 157,832
Other 212,937 98,133
Total Non-Current Assets 307,396 255,695
Total Assets 499,254 852,164
Current Liabilities
Trade and other payables 380,856 194,832
Provisions 625,282 394,315
Other 23,864 23,864
Interest bearing liabilities 9 50,000 -
Total Current Liabilities 1,080,002 613,011
Non-Current Liabilities
Non interest bearing loans 46,399 33,329
Provisions 9,917 14,000
Total Non-Current Liabilities 56,316 47,329
Total Liabilities 1,136,318 660,340
Net Assets (637,064) 191,824
Equity
Issued capital 7 35,890,879 35,141,145
Shares to be issued 210,000 245,000
Reserves 2,417,564 2,454,846
Accumulated losses (39,253,958) (37,747,618)
Total parent entity interest (735,515) 93,373
Minority interest in controlled entities 98,451 98,451
Total Equity (637,064) 191,824
The accompanying notes form part of these financial statements.
OROPA LIMITED 19
HALF YEAR REPORT
OROPA LIMITED AND CONTROLLED ENTITIES
ACN 009 241 374
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the Half Year ended 31 December 2008
CONSOLIDATED
$ $ $ $ $
Share Capital Reserves Accumulated Outside Equity 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 963,525 - - - 963,525
Share issue costs (52,676) - - - (52,676)
Foreign currency reserve - 177,848 - - 177,848
Issue of options - - - - -
Loss for the half year - - (1,823,215) - (1,823,215)
Balance at 31.12.07 34,322,825 1,661,958 (35,662,839)
98,451 420,395
$ $ $ $ $
Share Capital Reserves Accumulated Outside Equity Total
& shares to be Losses Interest
issued
Balance at 1.7.08 35,386,145 2,454,846 (37,747,618)
98,451 191,824
Issue of shares & shares
to be issued 768,500 - - - 768,500
Share issue costs (53,766) - - - (53,766)
Foreign currency reserve - (52,906) - - (52,906)
Issue of options - 26,561 - - 26,561
Option issue costs - (10,937) - - (10,937)
Loss for the half year - - (1,506,340) - (1,506,340)
Balance at 31.12.08 36,100,879 2,417,564 (39,253,958) 98,451 (637,064)
The accompanying notes form part of these financial statements.
OROPA LIMITED 20
HALF YEAR REPORT
OROPA LIMITED AND CONTROLLED ENTITIES
ACN 009 241 374
CONSOLIDATED CASH FLOW STATEMENT
For the Half Year Ended 31 December 2008
CONSOLIDATED
31.12.2008 31.12.2007
Note $ $
Cash flows from operating activities
Payments to suppliers and employees (243,253) (838,568)
Interest received 3,746 13,925
Net cash (used in) operating activities (239,507) (824,643)
Cash flows from investing activities
Purchase of plant & equipment (2,006) (22,195)
Mining exploration and evaluation expenditure (910,227) (745,960)
Payments for investments (5,114) -
Net cash (used in) investing activities (917,347) (768,155)
Cash flows from financing activities
Proceeds from share issue 740,004 963,525
Share issue costs (25,262) (52,676)
Proceeds from options issue 18,248 -
Cost of options issue (10,937) -
Borrowings from shareholders 50,000 -
Proceeds refunded from security deposits 679 -
Net cash provided by financing activities 772,732 910,849
Net increase /(decrease) in cash and cash
equivalents held (384,122) (681,949)
Cash and cash equivalents at the beginning
of the reporting period 383,377 1,427,548
Effects of exchange rate changes on cash
and cash equivalents 75,055 (31,162)
Cash and cash equivalents at the end of
the reporting period 8 74,310 714,437
The accompanying notes form part of these financial statements.
OROPA LIMITED 21
HALF YEAR REPORT
OROPA LIMITED AND CONTROLLED ENTITIES
ACN 009 241 374
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Half Year Ended 31 December 2008
1. Corporate Information
Oropa Limited (the Company) is a company limited by shares incorporated in Australia whose shares
are publicly traded on the Australian Securities Exchange. The consolidated half year report of the
Company as at and for the six months ended 31 December 2008 comprises the Company and its
subsidiaries, together referred to as the “Group”.
The consolidated annual financial report of the Group as at and for the year ended 30 June 2008 is
available upon request from the Company’s registered office at 25 Charles Street, South Perth,
Western Australia or at www.oropa.com.au .
2. BASIS OF PREPARATION AND ACCOUNTING POLICIES
(a) Basis of preparation
The general purpose financial report for the half-year ended 31 December 2008 has been prepared in
accordance with the requirements of the Corporations Act and AASB 134 Interim Financial Reporting.
The half-year financial report does not include all notes of the type normally included within the annual
financial report and therefore cannot be expected to provide as full an understanding of the financial
performance, financial position and financing and investing activities of the consolidated entity as the
full financial report.
It is recommended that the half year financial report should be read in conjunction with the Annual
Financial Report of Oropa Limited as at 30 June 2008 and considered together with any public
announcements made by Oropa Limited and its controlled entities during the half-year ended 31
December 2008 in accordance with its continuous disclosure obligations of the ASX Listing Rules.
The half-year financial report has been prepared on a historical cost basis.
(b) Significant accounting policies
The half-year consolidated financial statements have been prepared using the same accounting
policies as used in the annual financial statements for the year ended 30 June 2008.
(c) Changes in accounting policies
In the current period, 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 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.
OROPA LIMITED 22
HALF YEAR REPORT
OROPA LIMITED AND CONTROLLED ENTITIES
ACN 009 241 374
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Half Year Ended 31 December 2008
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES CONTINUED
(d) Going Concern
The consolidated financial statements have also been prepared on the going concern basis.
The ability of the Company and 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 on 31 December 2008 entered into a capital fundraising package with Blackwood
Capital Limited, to be completed prior to 31 March 2009, with additional funds to follow.
The funding package consists of placing 29,949,000 shares in the Company at a price of 1.3 cents per
share to raise $389,337. In addition to the shares being placed, one share option for every two shares
placed will be issued in the capital of the company. Additionally convertible notes of 80,533,150 at a
conversion rate of 2 cents are to be placed in order to raise $1,610,663.
As at the date of this report the company has received funds of $276,000 as a result of the funding
package. They represent funds from shareholders who have agreed to purchase shares in Oropa
Limited. As at the date of this report 15,461,539 shares have been issued to shareholders raising
funds of $201,000. The balance of $75,000 is to be issued in shares to shareholders following
shareholder approval at the company’s general meeting scheduled to take place on 24 March 2009.
In addition to the funds raised by the funding package, the directors also raised an additional
$100,000 being 5,000,000 shares issued at 2 cents each. These shares were issued on 9 February
2009.
(e) Basis of consolidation
The half year condensed consolidated financial statements comprise the financial statements of
Oropa Limited and its subsidiaries as at 31 December 2008.
CONSOLIDATED
31.12.2008 31.12.2007
$ $
3. OPERATING LOSS
Operating loss from ordinary activities before
income tax has been determined after:
(a) Crediting as revenue:
Interest received 3,746 13,925
(b) Charging as expense:
Depreciation 7,936 7,153
Exploration expenditure 1,099,219 1,289,133
written off
OROPA LIMITED 23
HALF YEAR REPORT
OROPA LIMITED AND CONTROLLED ENTITIES
ACN 009 241 374
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Half Year Ended 31 December 2008
4. SEGMENT INFORMATION
Primary Reporting – geographical segments
The geographical segments of the consolidated entity are as follows:
Half year 2008
Australia
$
Africa
$
South
East
Asia
$
India
$
Unallocate
d
$
Consolidate
d
$
Total
Segment
Revenue
3,746 - - - - 3,746
Segment
Result
(389,073)
(135,494
)
(947,476)
(34,297
)
-
(1,506,340)
Half year 2007
Australia
$
Africa
$
South
East
Asia
$
India
$
Unallocate
d
$
Consolidate
d
$
Total Segment
Revenue
13,925 - - - - 13,925
Segment Result
(973,270)
-
(831,026)
(18,919)
-
(1,823,215)
5. SUBSEQUENT EVENTS
Fundraising Package
The following share issue has occurred as a result of the funding package:
On 9 February 2009 the following share placements occurred:
• 15,461,539 ordinary shares at 1.3 c each were issued to sophisticated investors of
Blackwood Capital Limited, with free attaching options issued on the basis of one free
option for each two shares issued. This has raised funds of $201,000.
A general meeting of shareholders is scheduled for 24 March 2009 where the
company is seeking shareholder approval for the issue of the remaining shares of the
funding package as well as the issue of convertible notes.
OROPA LIMITED 24
HALF YEAR REPORT
• In addition to the fundraising package, a further share issue on 9 February 2009 also
took place. 5,000,000 shares were issued at 2 cents each raising funds of $100,000.
OROPA LIMITED AND CONTROLLED ENTITIES
ACN 009 241 374
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Half Year Ended 31 December 2008
5. SUBSEQUENT EVENTS (CONTINUED)
Indonesian Contract of Work
On 16 December 2008, the Indonesian Parliament passed a new Law on Mineral and Coal
Mining (the “Law”), which received the assent of the President on 12 January 2009,
becoming Law No. 4/1009. The Contract of Work (“CoW”) system under which
the Company operates will no longer be available to investors. While the Law indicates that
existing CoWs, such as the Company’s, will be honored, the transition provisions are unclear,
and will require clarification in yet to be issued government regulations. There are a number
of issues which existing CoW holders, including the Company, are currently analysing.
Among others these include:
• the CoW transition provisions. The new Law notes that existing CoWs will be honored
until their expiration. However, it also states that existing CoWs must be amended
within one year to conform with the provisions of the new Law (other than terms
related to State revenue – which is not defined, but presumably includes royalties and
taxes);
• the requirement for CoW holders which have already commenced some form of activity
to, within one year of enactment of the new Law, submit a mining activity plan for the
entire contract area. If this plan is not fulfilled, the contract area may be reduced to
that allowed for licences under the new Law (which is significantly smaller than the
Company’s current area); and
• the requirement for holders of existing CoWs, within five years of enactment of
the Law, to comply with the obligation under the Law to conduct onshore processing
of their ore. Onshore processing is not clearly defined.
It is expected that CoW holders, with the support of mining industry associations, will
vigorously defend their rights under their existing contracts. It is possible that the arbitration
provisions of the CoWs will be invoked if the government attempts to force changes in CoW
terms without the agreement of the contractors. The Company is analysing the impact of
this situation on its operations, and believes that there will be no impact in the near term, as
the industry and the government work towards a consensus on these issues.
Senior Management Restructuring
Effective from 23rd February 2009 Bruce Tomich will be the company’s new CEO, in addition to
his interim position of Chairman to the Board. The Company intends to appoint a new
chairman once re-positioning and financial stability of the Company has been established.
Mr Phil Christie has taken on the role of Business Projects Manager and continues to be a
director of the Company.
6. CONTINGENT LIABILITIES
There has been no change in contingent liabilities since the previous annual reporting date.
OROPA LIMITED 25
HALF YEAR REPORT
OROPA LIMITED AND CONTROLLED ENTITIES
ACN 009 241 374
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Half Year Ended 31 December 2008
31.12.2008 30.06.2008
$ $
7. ISSUED CAPITAL
Ordinary shares
Issued & fully paid 35,890,879 35,141,145
31.12.2008 31.12.2008
Number $
Movements in ordinary shares on issue:
As at 1 July 2008 184,451,912 35,141,145
15 July 2008 7,636,362 420,000
7 October 2008 454,545 25,000
7 October 2008 6,600,000 330,000
7 October 2008 521,455 28,500
Share issue costs - (53,766)
28 November 2008 1 -
199,664,275 35,890,879
Options
As at 28 February 2009, the Company had the following listed options:
- 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 (“ASX”).
The following options are unlisted:
- 2,700,000 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 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.
- 7,730,769 options to subscribe for fully paid ordinary shares exercisable at 5 cents at any
time on or before the expiry date of 31 August 2011.
- During the period 500,000 unlisted options exercisable at 12 cents expired on 20
October 2008.
OROPA LIMITED 26
HALF YEAR REPORT
OROPA LIMITED AND CONTROLLED ENTITIES
ACN 009 241 374
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Half Year Ended 31 December 2008
31.12.2008 31.12.07
$ $
8. RECONCILIATION OF CASH
Cash and cash equivalents 74,310 714,437
Restricted cash at bank (not available for use) 23,864 23,948
98,174 738,385
The restricted cash at bank is unclaimed monies from the sale of un-marketable parcels of
shares. The amount represents the cheques sent to shareholders that were returned to
Oropa Limited.
Cash at bank at 31 December 2008 includes a Bank Guarantee of AUS $20,000 and an
Import Letter of Credit of US $24,267.
31.12.2008 30.06.08
$ $
9. INTEREST BEARING LIABILITIES
Loans from shareholders 50,000 -
Shareholders Brian Hurley and Philip Christie have each lent the company $25,000 with
interest accruing at a rate of 8.75% per annum. The loans are on call and are payable upon
demand. As at 31 December 2008 interest of $1,078.76 has accrued.
10. RELATED PARTIES
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 Ltd.
Oropa owns 100% of the shares in Aberfoyle Pungkut Investments Pte Ltd (API). API holds a
75% interest in PT Sorikmas Mining, with the Indonesian Government mining company, P.T.
Aneka Tambang holding the remaining 25%.
Transactions between Oropa Limited and related parties in the wholly-owned group during the
period ended 31 December 2008 consist of loans on an interest free basis with no fixed term
and no specific repayment arrangement. Oropa Limited made an additional provision for
doubtful debts of $3,061,273 in its accounts for the period ended 31 December 2008 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 wholly-owned group.
OROPA LIMITED 27
HALF YEAR REPORT
Other related parties
Aggregate amounts receivable from related parties in the wholly owned group at balance date
were as follows:
31.12.2008 30.06.2008
$ $
Non current receivables 14,830,118 11,768,845
Provision for Doubtful Debts (14,830,118) (11,768,845)
- -
11. SHARE BASED PAYMENTS
On 7 October 2008, Mancora Capital Pty Ltd were issued with 521,455 shares valued at
$28,500 in lieu of their commission payment for fundraising on behalf of the company.
Additionally, Nathan Featherby was issued with 4,156,198 options exercisable at 20c expiring
on 31 January 2011 valued at $8,312.40 in lieu of his commission payment for fundraising on
behalf of the company. This amount has been presented in the accounts as a prepayment as
the commission payment is not due until 25 March 2009. These options represent the
shortfall of the 2011 options issued, and as the shortfall had to be issued within three months
of the first issue of the 2011 options, it was agreed that this amount would therefore be
considered as part of payment of the commission payment due in March 2009.
OROPA LIMITED 28
HALF YEAR REPORT
OROPA LIMITED AND CONTROLLED ENTITIES
ACN 009 241 374
DIRECTORS’ DECLARATION
The directors declare that
1. The consolidated financial statements and notes set out on pages 17 to 27;
(a) comply with Accounting Standard AASB 134: – Interim Financial Reporting, the Corporations
Regulations; and
(b) give a true and fair view of the consolidated entity’s financial position as at 31 December 2008
and of its performance for the half-year ended on that date.
2. In the directors’ opinion there are reasonable grounds to believe that the Company will be
able to pay its debts as and when they become due and payable.
This declaration is made in accordance with a resolution of the directors.
Dated at Perth this 13th day of March 2009
BRUCE N TOMICH
Director
29
INDEPENDENT AUDITOR’S REVIEW REPORT
TO THE MEMBERS OF
OROPA LIMITED
Report on the Half-Year Financial Report
We have reviewed the accompanying half-year financial report of Oropa Limited, which
comprises the consolidated balance sheet as at 31 December 2008, and the
consolidated income statement, consolidated statement of changes in equity and
consolidated cash flow statement for the half-year ended on that date, a condensed
statement of accounting policies, other selected explanatory notes and the directors’
declaration.
Directors’ Responsibility for the Half-Year Financial Report
The directors of the Company are responsible for the preparation and fair presentation of
the half-year financial report in accordance with Australian Accounting Standards
(including the Australian Accounting Interpretations) and the Corporations Act 2001. This
responsibility includes designing, implementing and maintaining internal controls relevant
to the preparation and fair presentation of the half-year financial report that is free from
material misstatement, whether due to fraud or error; selecting and applying appropriate
accounting policies; and making accounting estimates that are reasonable in the
circumstances.
Auditor’s Responsibility
Our responsibility is to express a conclusion on the half-year financial report based on our
review. We conducted our review in accordance with Auditing Standard on Review
Engagements ASRE 2410 Review of Interim and Other Financial Reports Performed by
the Independent Auditor of the Entity, in order to state whether, on the basis of the
procedures described, we have become aware of any matter that makes us believe that
the financial report is not in accordance with the Corporations Act 2001 including: giving a
true and fair view of the consolidated entity’s financial position as at 31 December 2008
and its performance for the half year ended on that date; and complying with Accounting
Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001.
As the auditor of Oropa Limited, ASRE 2410 requires that we comply with the ethical
requirements relevant to the audit of the annual financial report.
A review of a half-year financial report consists of making enquiries, primarily of persons
responsible for financial and accounting matters, and applying analytical and other review
procedures. A review is substantially less in scope than an audit conducted in
accordance with Australian Auditing Standards and consequently does not enable us to
30
obtain assurance that we would become aware of all significant matters that might be
identified in an audit. Accordingly, we do not express an audit opinion.
Independence
In conducting our review, we have complied with the independence requirements of the
Corporations Act 2001. We confirm that the independence declaration required by the
Corporations Act 2001, has been provided to the directors of Oropa Limited on 13 March
2008.
Conclusion
Based on our review, which is not an audit, we have not become aware of any matter that
makes us believe that the half-year financial report of Oropa Limited is not in accordance
with the Corporations Act 2001 including:
(a) giving a true and fair view of the consolidated entity’s financial position as at 31
December 2008 and of its performance for the half-year ended on that date; and
(b) complying with Accounting Standard AASB 134 Interim Financial Reporting and
Corporations Regulations 2001.
Inherent Uncertainty Regarding Going Concern
Without qualification to the review, as referred to in note 2 (d) to the financial statements,
the financial statements have been prepared on a going concern basis. At 31 December
2008 the consolidated entity had negative working capital of $888,144 and incurred
losses for the half year of $1,506,340 increasing accumulated losses to $39,253,958. The
consolidated entity had a deficiency in net assets of $637,064. The directors have stated
in note 2 (d) that the consolidated entity is dependent upon the ability of the Company to
raise further equity and loan funds.
The ability of the Company and the consolidated entity to continue as going concerns and
to meet planned and committed expenditure requirements is subject to the Company and
the consolidated equity raising further equity and/or loan capital.
In the event that the consolidated group is not successful in raising further funds, the
realisable value of the consolidated entity’s non-current assets may be significantly less
than their current carrying values and the consolidated entity may not be able to continue
in its present form and may not be able to meet its current liabilities and future
commitments.
STANTONS INTERNATIONAL
(An authorised audit company)
J P Van Dieren
Director
West Perth, Western Australia
13 March 2009
31
13 March 2009
Board of Directors
Oropa Limited
25 Charles Street
SOUTH PERTH WA 6151
Dear Sirs
RE: OROPA LIMITED
In accordance with section 307C of the Corporations Act 2001, I am pleased to provide
the following declaration of independence to the directors of Oropa Limited.
As Audit Director for the review of the financial statements of Oropa Limited for the six
months ended 31 December 2008, I declare that to the best of my knowledge and belief,
there have been no contraventions of:
(i) the auditor independence requirements of the Corporations Act 2001 in relation to
the review; and
(ii) any applicable code of professional conduct in relation to the review.
Yours sincerely
STANTONS INTERNATIONAL
(Authorised Audit Company)
John Van Dieren
Director