half yearly report

OROPA LIMITED
ACN 009 241 374
HALF YEAR FINANCIAL REPORT
31 DECEMBER 2007
OROPA LIMITED 2
HALF YEAR REPORT
OROPA LIMITED AND CONTROLLED ENTITIES
ACN 009 241 374
CONTENTS
Directors’ Report
3
Condensed Consolidated Income Statement 17
Condensed Consolidated Balance Sheet
18
Condensed Consolidated Statement of Changes in Equity 19
Condensed Consolidated Cash Flow Statement
20
Notes to the Condensed Consolidated Financial Statements
21
Directors’ Declaration
26
Independent Review Report
27
Auditor Independence Declaration
29
OROPA LIMITED 3
HALF YEAR REPORT
OROPA LIMITED AND CONTROLLED ENTITIES
ACN 009 241 374
DIRECTORS’ REPORT
For the Half Year Ended 31 December 2007
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 2007.
DIRECTORS
The following persons were directors of Oropa during the whole of the half-year and up to the date of
this report:
BJ Hurley
PCJ Christie
RG Murchison
BNV Tomich
RESULT
The loss for the half-year ended 31 December 2007 was $1,823,215 and for the half year ended 31
December 2006 the loss was $2,029,935.
REVIEW OF OPERATIONS
Corporate
On the 18th December 2007 the Company placed 10,000,000 ordinary fully paid shares at a price of 5
cents each to raise $500,000 before costs. The placement was made to sophisticated investors.
Oropa is applying the funds to ongoing drilling programs at the Hutabargot Julu prospect and other
exploration activities at the Pungkut gold prospect in Indonesia.
At the Company’s Annual General Meeting which was convened on 28 November 2007, all
resolutions as set out in the Notice of Meeting were carried with the required majorities.
On 28 November 2007, the Company’s directors announced that a meeting of shareholders was to be
convened at a date to be fixed to consider and if thought fit, to pass a resolution for the Company to
issue up to 13,280,376 new options, each at an issue price of $0.002 per new option and expiring on
31 January 2011 (“2011 Options”) to those persons recorded as holders of unexercised options that
expired on 31 December 2007. This Notice of Meeting is presently being prepared to be dispatched
to shareholders.
If this resolution is passed, the Company will make the offer to the holders of the expired 31
December 2007 options and those who accept the offer will be issued with the 2011 Options. The
Company’s directors reserve the right to issue the shortfall to allottees no later than 3 months from the
date of the shareholders meeting.
Earlier, on 17 October 2007, the Company announced that it had raised interim working capital of
$463,525.00 before costs via a placement of 10,300,555 ordinary fully paid shares at a price of 4.5
cents each to overseas and sophisticated investors. Oropa is applying these funds towards ongoing
drilling at its Sihayo 1 North and Hutabargot Julu prospects at its 75% owned Pungkut gold project in
Indonesia, plus funding the establishment of its field operations in Malawi including initial sampling
programs at its Mzimba Northwest and Chitunde uranium prospects.
OROPA LIMITED 4
HALF YEAR REPORT
Exploration
Indonesia
Pungkut Gold Project, Sumatra (75%)
Following the appraisal of the project by Richard Sillitoe in the July last year, Oropa’s exploration
objectives are now clearly focused on increasing the gold resource base along the Sihayo 1 North -
Sambung trend, while investigating the mineral potential at the Hutabargot Julu epithermal quartz
veins prospect, which is located approximately 6 kilometres south-east of Sambung.
A resource extension drilling program that was completed in January this year generated numerous
encouraging results at the Sihayo 1 North deposit, prompting Oropa to initiate a revised resource calculation
which is currently in progress. Upon completing this revised estimate, Oropa will undertake a mining scoping
study on the combined resources at Sihayo 1 North and Sambung with a view to advancing the Pungkut
Project to the development stage.
While the resource calculation is underway to be followed by the scoping study, exploration will continue at
Hutabargot Julu where drilling is targeting parallel sets of epithermal quartz veins interpreted to be up to 3km
in length.
Figure 1: Pungkut Contract of Work, showing principal prospects
OROPA LIMITED 5
HALF YEAR REPORT
Figure 2: Pungkut Active Prospects
Activities – Northern Block:
�� Sihayo 1 North:
- 19 diamond drill holes (1121.0m) completed.
- Drilling completed to the west of the existing Inferred Resource.
�� Sihayo 1:
- 6 diamond drill holes (351.4m) completed.
- Drill testing of a 1,400 metre-long coincident geophysical Induced Polarisation (“IP”) and
gold in soil anomaly.
�� Hutabargot Julu:
- 13 diamond drill holes completed (1,566.1m, Sarahan & Sunday veins).
- Rock-chip sampling and mapping of epithermal quartz veins exposed in historic Dutch
exploration tunnels
on the Sarahan and Sunday veins.
- Rock-chip and soil sampling at the Sihorbo vein.
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Sihayo 1 North
A step-out drilling program was completed during the half year to the west of the Sihayo 1 North
Inferred Resource targeting high grade outcropping jasperoid. This program returned significant gold
intersections from most holes drilled, which are summarised in Table 1 and include:
SHDD081: 32m @ 3.87 g/t Au from 14m
SHDD085: 15m @ 1.99 g/t Au from 23m
SHDD087: 22m @ 2.87 g/t Au from surface
SHDD094: 10m @ 3.62 g/t Au from 25m
SHDD095: 8m @ 2.17 g/t Au from surface
SHDD096: 17.55m @ 1.82 g/t Au from surface
SHDD097: 6m @ 3.66 g/t Au from 1m
13m @ 1.53 g/t Au from 15m
SHDD098: 6m @ 2.15 g/t Au from surface
SHDD100: 7m @ 1.33 g/t Au from surface
SHDD101: 3m @ 2.59 g/t Au from 7m
SHDD103: 22m @ 3.96 g/t Au from surface
6m @ 1.45 g/t Au from 25m
SHDD104: 22.75m @ 4.84 g/t Au from 41m
SHDD105: 2m @ 6.38 g/t Au from 2m
Prior to any upgrade, the Sihayo 1 North prospect is estimated to contain a total of 7.1 Mt @ 2.7 g/t Au for
610,000 oz Au as obtained from a resource calculation undertaken in early 2004. However, resulting from
the encouraging results returned from the step-out drilling, the Company considers that there is strong
potential to add to these inferred resource ounces. Upon receiving the upgraded resource calculation
a mining scoping study will be required to fully evaluate the economic potential of the Pungkut Project,
particularly taking into account the current gold prices.
In preparation for the new resource calculation all drill collars were surveyed, along with revised
geological interpretation and updating of the previous Sihayo 1 North digital database. The upgraded
database and quality controls were then validated from which a digital terrain model (DTM) was
generated for the Sihayo area.
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Table 1: Significant Sihayo 1 North Western Extension Drilling Results
Notes
1. All assays determined by 50gm fire assay with AAS finish by Intertek- Caleb Brett Laboratories in Jakarta
2. Lower cut of 1.0ppm Au used
3. A maxium 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 local UTM grid system
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Test pits dug to the north-west of the recent drilling to evaluate areas that were not outcropping also
returned positive results. These pits confirm the presence of extensive regolith gold in the area. A
recent geological re-interpretation of the Sihayo 1 North resource indicates the test pit area as
containing a fault-bounded favourable limestone stratigraphy, which is coincident with a strong soil
geochemistry and geophysical IP anomaly indicating a high likelihood of mineralising jasperoid. This
area is as yet untested by drilling.
Figure 3 shows the locations of these test pits in relation to the drill holes; best results include:
Test Pit B: 1m @ 4.43 g/t Au from surface
Test Pit H: 4m @ 3.07 g/t Au from 1m,
including 7.09 g/t Au grab sample from 2-4m
Test Pit D: 4m @ 1.73 g/t Au from surface
Test Pit F: 1m @ 2.16 g/t Au from surface
including 6.19 g/t Au grab sample
Figure 3: Sihayo 1 North re-interpreted geology, test pits and target areas; in Local Grid Coordinates
Table 2: Sihayo 1 Significant Drill Results
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Notes
1. All assays determined by 50gm fire assay with AAS finish by Intertek- Caleb Brett Laboratories in Jakarta
2. Lower cut of 1.0ppm Au used
3. A maxium 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 local UTM grid system
Hutabargot Julu
The Hutabargot Julu prospect comprises north striking epithermal quartz veins of up to 3km inferred
strike length at the south-eastern end of the Sihayo-Sambung gold trend (Figure 1). Historical Dutch
reports record vein widths of up to 3m averaging 20 g/t Au from exploration tunnels. The Sarahan vein
adits and drives were located and where safely accessible, mapped and the veining and wallrock
sampled (52 channel samples mostly of length 1 metre or 2 metres, total length sampled 78.7 metres;
and 5 grab samples). Six grab samples were collected from the Sihorbo vein (2 surface outcrop and 4
adit samples), and 2 from the Sisangkil adit. Samples were analysed at Intertek - Caleb Brett
laboratories in Jakarta.
Epithermal veining occurs in Miocene volcanics which overlie Permian sedimentary-volcanic
basement. The presence of gold mineralisation in jasperoid at the nearby Dolok prospect, which lies
to the north in an erosion window of underlying Permian rocks, demonstrates the continuity from
Permian to Miocene and jasperoid to epithermal veins. The extent and thickness of veining indicates a
very large hydrothermal system, both in terms of strike length and depth.
Hutabargot Julu is regarded as an exploration priority owing to the gold mineralisation potential of
sub-parallel north-south striking epithermal quartz vein zones up to 3km in length, along with its
proximity to Sihayo and Sambung, enhancing its strategic value as a potential supplementary
resource for a centrally located treatment plant.
The vein system is interpreted as being mid-sulphidation epithermal, with upper level exposure
interpreted from predominantly chalcedonic quartz textures observed in outcrops and exposures in
shallow historic Dutch exploration tunnels. The system is interpreted to be preserved in almost its
entirety, with potential for substantial high-grade gold accumulation(s) at depth. Epithermal quartz
vein systems require careful and systematic exploration, as barren or low grade quartz veins often
overlie economic grade gold mineralisation which is typically located in high grade shoots separated
by low grade veining along strike.
Oropa committed to a comprehensive drilling program to test these vein systems at depth to evaluate
their full potential. The program included near surface drilling beneath outcropping veins to determine
their strike orientation and dip to facilitate drill targeting for follow-up of the structures at depth.
At this early stage, most drilling has been focused on the Sarahan vein, which has produced the most
consistent surface and adit sampling results, including numerous 1-2 g/t Au rock and channel chip
samples, along with higher grade results up to 27.1 g/t Au. Limited work undertaken to date suggests
that this vein is not continuously mineralised.
The first phase of drilling has confirmed that the Sarahan vein dips consistently at around 60º to the
west, with a strike dip of 170º, and vein-zone thickness of 2-12 metres. Veining consists of massive
solidification, dogstooth quartz and calcite veining, and minor adularia. A halo of hydrothermal
brecciation flooded with silica and quartz stockwork is common in wallrock surrounding the veins.
Most drilling to date has explored relatively shallow depths similar to those of the deepest historical
Dutch exploration adits. The first deeper hole (HUTDD010) tested intervals nearly 100 metres
vertically down-dip, probing for bonanza grade mineralisation but unfortunately had to be abandoned.
A second deep hole (HUTDD013) was drilled to 248 metres and results are awaited.
The second rig was relocated from Sihayo 1 North and commenced drilling in January at the Sunday
vein, where three drill holes were completed to test the vein orientation and for continuity of
mineralisation beneath mineralised outcrop, which grades up to 3.83 g/t Au in rock-chip samples.
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HALF YEAR REPORT
Concurrently with drilling, surface work for the area included ongoing mapping and sampling of the
extensive Dutch exploration adits in the Sunday vein area, along with a soil auger grid and surface
rock-chip sampling program in the Sihorbo vein area to identify the strongest geochemical anomalism
prior to drill target selection. Recent outcrop sampling of newly discovered vein sets has returned
some exciting results, including:
Sarahan Vein channel samples (across-strike from various locations within 275m of vein strike –
Figure 4)
• 2m @ 17.5 g/t Au & 102 g/t Ag; 2m @ 4 g/t Au & 22 g/t Ag (contiguous samples)
• 2m@ 9.8 g/t Au & 24g/t Ag; 2m@ 5.32 g/t Au & 12 g/t Ag ( “ “ )
• 1m@ 7.48 g/t Au & 18g/t Ag; 1m@ 2.5 g/t Au & 5 g/t Ag ( “ “ )
Length weighted average grades of all 52 samples; 1.82 g/t Au & 10 g/t Ag.
Sihorbo Vein grab samples
• 24.6 g/t Au & 261 g/t Ag (creek outcrop; quartz vein with sulphides and silicified dacitic
volcaniclastic)
• 2.85 g/t Au & 21 g/t Ag (main adit; quartz vein with manganese oxides & sulphide spots)
• 1.97 g/t Au & 76 g/t Ag (banded quartz vein with traces of sulphides)
Sisangkil Adit
• 4.69 g/t Au & 16 g/t Ag (grab sample of banded quartz vein with manganese oxides)
Sarahan Creek 400m west and sub-parallel to Sarahan Vein:-
�� 61 g/t Au & 149 g/t Ag from 1m wide silicified breccia with pyrite and chalcopyrite
�� 2.18 g/t Au in adjacent vuggy quartz vein with manganese
Siborok Creek east of Sarahan Vein:-
�� 7.18 g/t Au & 216 g/t Ag from a 2m quartz vein breccia with trace sphalerite, galena and
chalcopyrite
These results confirm the information provided in the Dutch reports, and are considered to be very
encouraging especially due to the presence in the samples of banded chalcedony that may be
indicative of shallow level exposure with likely preservation of any high grade shoots.
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Figure 4: Hutabargot Julu Drill Location Plan
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Table 3: Hutabargot Julu Drilling Significant Results
Notes
1. All assays determined by 50gm fire assay with AAS finish by Intertek- Caleb Brett Laboratories in Jakarta
2. Lower cut of 1.0ppm Au used
3. A maxium 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 local UTM grid system
Southern Block:
No significant activities in the southern block during the reporting period.
Malawi
During the past 18 months, the Southern African country of Malawi has gained significant prominence
as an emerging uranium region with an increase in exploration activities from several foreign
explorers including Paladin (Africa) Ltd. (“Paladin”) with its advanced Kayelekera uranium deposit –
25.08 million lbs U3O8) (“Kayelekera”) and Globe Uranium Ltd (“Globe”) with its advanced Kanyika
project in central Malawi. Paladin has recently commenced the development of Kayelekera where
roll-front style mineralisation is hosted within the Karroo sandstone, mudstone and carbonaceous
sediments. The project is scheduled to be commissioned in late 2008 with a forecast annual
production of 3.3Mlbs of U3O8 over a mine life of 7 years based reportedly on proven and probable
ore reserves of 10.46Mt at 0.108% U3O8. As is evidenced by the number of applications recently
granted by the Government of Malawi, mineral exploration in the country is on the increase and it is
important to explorers that the government permits the mining of uranium to develop the country’s
export earnings.
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Recent exploration in Malawi, a country which is substantially under-explored has already demonstrated
that the country is highly prospective for minerals. Globe is presently conducting a scoping study at
Kanyika, scheduled for completion in Q2 2008 for its uranium-niobium-tantalum-zirconium deposit, which
is encouraging, given the limited amount of exploration undertaken throughout the country to date.
Oropa’s wholly owned subsidiary, Oropa Exploration Pty Ltd (“OEPL”), has been granted 100% ownership
of three Exclusive Prospecting Licences (“EPLs”) for uranium covering the Mzimba Northwest, Chitunde,
and Chizani project areas. Additionally, OEPL has entered into joint ventures for a 90% interest in the
mineral rights for uranium and other minerals (excluding coal) in two contiguous EPLs to the north of
Kayelekera with local EPL holders who were previously licensed to explore for coal. OEPL has
established an office and transit base in Lilongwe and stocked necessary field supplies for ongoing
exploration campaigns.
A regional geochemical survey was initiated in November 2007 over the areas of Mzimba Northwest and
Chitunde which continued through until the commencement of the wet season in mid-December. Results
from the samples collected from the two project areas have been correlated and interpreted, with an
announcement to be made later this month.
During the past six months, OEPL has become the holder of a substantial and diverse tenement portfolio
(in excess of 3,800km2) in Malawi, which it intends to actively explore during 2008 and over the coming
years. Field activities are scheduled to resume in April.
Figure 5: Project Locations
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Mzimba Northwest Project (100%)
Mzimba Northwest comprises EPL0211/2007, covering an area of 2,169km2, and is situated in the
north-central portion of Malawi.
Immediately after acquiring the EPL, Oropa commissioned two independent interpretive studies to
identify and prioritize targets for the initial sampling programs. The first study, conducted by Southern
Geoscience Consultants, considered data available from a country-wide airborne radiometric uranium
and magnetic geophysical survey flown in 1984/85 by Hunting Geology and Geophysics Ltd based at
the time in the United Kingdom. The second study, completed by Mackay and Schnellmann Pty Ltd,
interpreted Landsat satellite imagery with the aid of Malawian Geological Survey geological maps and
bulletins, combined with the Hunting airborne geophysical survey, to produce a geological
interpretation of the project area.
The combined results from these interpretive studies have outlined targets for Karroo sediments with
potential for ‘roll front’ style uranium mineralisation, similar to that at Paladin’s Kayelekara project;
Mafingi quartzites for unconformity style uranium mineralisation; and circular anomalies potentially
associated with intrusives and uranium-niobium-tantalum mineralisation, such as that at Globe’s
Kanyika project.
Last November, OEPL commenced ground geochemical surveys of selected targets identified in the
interpretive studies. Due to the lack of any previous systematic exploration of the project areas,
regional sampling programs together with ground radiometrics, will need to be completed before
follow up exploration is undertaken.
Stream sediment sampling of fine fractions at creek junctions, with panned concentrate samples at
major sites was the chosen exploration method, with samples being assayed for uranium plus 28
other elements to evaluate the potential for a broad suite of other minerals. Upon interpretation of the
results from these analyses, targets will be re-rated according to their mineral potential for more
advanced exploration.
Sampling at Mzimba Northwest concentrated on the Emoneni district in the west of the block where a
north-south striking ridge coincident with uranium radiometric anomalies has been interpreted to be
caused by Mafingi quartzites. These quartzites, formed from the erosion of the basement sediments
during the Proterozoic era, filled valleys, basins and other topographic low areas. Subsequently, the
entire Proterozoic sequence has experienced deformation and high grade metamorphism. The
contact between the quartzites and gneiss is unconformable, and has been associated with uranium
mineralisation. Sixty eight stream sediment samples, 14 panned concentrate samples, and 26 rock
chip samples were collected to complete the initial exploration program for this target area.
Chitunde Project (100%)
The Chitunde project (EPL0212/2007 covering an area of 196km2 is situated some 86km west-northwest
of Lilongwe and is accessible in most parts by sealed roads. The target area is a coincident
airborne radiometric anomaly over an outcropping hill of quartz-syenite. The focus of exploration
within the Chitunde EPL is a prominent circular airborne radiometric anomaly measuring some 4km in
diameter coincident with a syenite intrusive complex. Similar intrusions in the north of Malawi, notably
the Ilomba Hill locality, are known to host uranium and niobium mineralisation.
Radiometric and satellite imagery covering the Chitunde Project area were evaluated to rank targets
for ground investigation, prompting an initial sampling program last December in conjunction with the
Mzimba Northwest program. The program comprised rock chip sampling, spectrometer readings and
stream sediment sampling from creeks radiating from the hill. A total of 58 rock chip samples were
collected, along with 10 stream sediment samples.
OROPA LIMITED 15
HALF YEAR REPORT
Table 4: Sampling Details
Projects
Rock
Chips
Stream
Sediments
Panned
Concentrates
Mzimba Northwest 26 68 14
Chitunde 58 10 0
Chizani Project (100%)
EPL0223/2007, with an area of 1,283km2) was the third tenement selected by OEPL due to the area
covering a major deformation zone, which is often an environment where mineralisation occurs. The
area is geologically diverse, and contains many uranium radiometric anomalies. Globe’s multielement
uranium-niobium-tantalum-zirconium Kanyika project borders Chizani’s southern boundary.
Considering that Globe commenced field programs as recent as July 2006 generated from a
radiometric anomaly demonstrates the potential of the area.
The granting of Chizani by the Malawian government in mid-December 2007 was too late for any
exploration to be undertaken prior to the onset of the wet season. Similar interpretative studies as
completed for Mzimba Northwest and Chitunde are being initiated to permit OEPL to commence
stream geochemical surveys early in the coming field season.
Ngana and Ngana East Projects (90%)
Ngana and Ngana East are the subject of two separate Memorandum of Understandings (“MOUs”)
with two local EPL holders who hold the mineral rights for coal exploration and development.
Substantial coal occurrences are thought to exist in the areas, although no systematic coal exploration
has been completed to date. Ngana and Ngana East are located in the far north of the country, with
their northern boundaries coincident with the Tanzanian border. The two prospects are in a strategic
location, containing basins of Karroo sediments, with the nearest mapped Karroo occurrence being
located some 20km to the south at Kayelekera.
Uranium can be hosted in strata bound deposits in the Karroo sediments, particularly where mobile
uranium is trapped by carbonaceous mudstone or sandstone layers. Brief site inspections of both
locations were undertaken as part of the MOU agreements. Formal Shareholders Agreements have
been prepared and forwarded to Malawi for the respective joint venture partners’ evaluation.
Thereafter, two new Malawian joint venture companies will be incorporated prior to field activities,
which are scheduled to commence in the coming field season.
India
Block D-7 Diamond Project, Chhattisgarh; (9% plus 9% buy back)
With little apparent progress towards an outcome to the protracted high court case in Chhattisgarh
during the latter part of 2007, Oropa continued to concentrate its exploration efforts at Pungkut and
more recently, initiate exploration programs in Malawi. Owing to inordinate ongoing delays with this
high court matter, Oropa decided not to contribute to a number of cash calls made by the Indian
partners, preferring to dilute its equity in B. Vijaykumar Exploration Pvt Ltd (“BVTS”) with the right to
buy back the additional 10% equity in BVTS at a future date. Throughout the latter half of 2007, Oropa
maintained regular contact with its Indian joint venture partners to monitor any progress and an Oropa
director attended board meetings in Mumbai during the year to obtain updates on the Block D-7 court
case and the status of the two Krishna River Reconnaissance Permit applications in Andhra Pradesh.
OROPA LIMITED 16
HALF YEAR REPORT
Project Evaluation
Oropa’s appraisals of a number of areas in Kenya and Malawi during late 2006 and early 2007 paid
dividends with the Company presently holding 100% interests in three granted EPLs in Malawi, with
two others awaiting the execution of Shareholders Agreements with the local partners.
In Kalimantan, Indonesian numerous coal projects were assessed involving a number of site visits to
meet with property vendors, local government officials and to review all available historical data and
licence documents, etc. Although the vast majority of these projects were rapidly discarded, the
Company continues to investigate exploration and mining opportunities in this emerging coal province.
Oropa has recently entered into more advanced negotiations with two Indonesian groups in
connection with areas in East and South Kalimantan that exhibit the potential to host medium to large
coal resources.
These assessments have established that the attrition rates are high, requiring a thorough due
diligence and technical appraisal of each prospect, prior to entering into any formal commitments to
enter into option agreements or joint ventures. However, the Company considers that these ongoing
evaluations are justifiable and the processes continue.
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 29.
Signed in accordance with a resolution of the Board of Directors.
PHILIP C CHRISTIE
Director
14 March 2008
OROPA LIMITED 17
HALF YEAR REPORT
OROPA LIMITED AND CONTROLLED ENTITIES
ACN 241 374
CONDENSED CONSOLIDATED INCOME STATEMENT
For the Half Year Ended 31 December 2007
CONSOLIDATED
31.12.2007 31.12.2006
Note $ $
Revenue 13,925 55,115
Total Revenue 13,925 55,115
Corporate secretarial expenses (29,675) (24,731)
Depreciation (7,153) (2,460)
Directors’ fees (-) (7,750)
Employee benefits expense (63,139) (71,392)
Exchange rate loss (223,292) (421,102)
Exploration expenditure written off (1,289,133) (1,278,534)
External consultancy expenses (99,317) (102,132)
Insurance expenses (16,329) (31,545)
Legal costs (1,391) (3,337)
Postage (4,619) (13,251)
Printing and stationary (11,536) (17,384)
Rates and taxes (5,847) (3,148)
Rental expense (22,257) (21,379)
Travel and entertainment (19,510) (20,103)
Other expenses (43,942) (66,802)
Loss before income tax 3 (1,823,215) (2,029,935)
Income tax expense - -
Loss after income tax (1,823,215) (2,029,935)
Loss attributable to members of Oropa Limited (1,823,215) (2,029,935)
Basic loss per share (cents per share) (1.21) (0.02)
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
CONDENSED CONSOLIDATED BALANCE SHEET
As at 31 December 2007
CONSOLIDATED
Note 31.12.2007 30.06.2007
$ $
Current Assets
Cash and cash equivalents 8 738,385 1,451,496
Trade and other receivables 122,929 131,302
Financial assets 1,333 1,333
Total Current Assets 862,647 1,584,131
Non-Current Assets
Plant & equipment 98,340 92,880
Other 61,864 63,725
Total Non-Current Assets 160,204 156,605
Total Assets 1,022,851 1,740,736
Current Liabilities
Trade and other payables 167,910 192,124
Provisions 370,732 331,697
Other 27,270 24,242
Total Current Liabilities 565,912 548,063
Non-Current Liabilities
Non interest bearing loans 36,544 37,760
Total Non-Current Liabilities 36,544 37,760
Total Liabilities 602,456 585,823
Net Assets 420,395 1,154,913
Equity
Issued capital 7 34,322,825 33,411,976
Reserves 1,661,958 1,484,110
Accumulated losses (35,662,839) (33,839,624)
Total parent entity interest 321,944 1,056,462
Minority interest in controlled entities 98,451 98,451
Total Equity 420,395 1,154,913
The accompanying notes form part of these financial statements.
OROPA LIMITED 19
HALF YEAR REPORT
OROPA LIMITED AND CONTROLLED ENTITIES
ACN 009 241 374
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the Half Year ended 31 December 2007
CONSOLIDATED
$ $ $ $ $
Share Capital Reserves Accumulated Outside Equity Total
Losses Interest
Balance at 1.7.06 31,525,228 479,003 (29,725,559) 98,451 2,377,123
Issue of shares 933 - - - 933
Share issue costs - - - - -
Foreign currency reserve - 359,915 - - 359,915
Issue of options - 16,011 - - 16,011
Loss for the half year - - (2,029,935) - (2,029,935)
Balance at 31.12.06 31,526,161 854,929 (31,755,494) 98,451 724,047
$ $ $ $ $
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
The accompanying notes form part of these financial statements.
OROPA LIMITED 20
HALF YEAR REPORT
OROPA LIMITED AND CONTROLLED ENTITIES
ACN 009 241 374
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
For the Half Year Ended 31 December 2007
CONSOLIDATED
31.12.2007 31.12.2006
Note $ $
Cash flows from operating activities
Payments to suppliers and employees (838,568) (324,151)
GST input credit refunds received - 43,787
Interest received 13,925 55,115
Net cash (used in) operating activities (824,643) (225,249)
Cash flows from investing activities
Purchase of plant & equipment (22,195) (9,196)
Mining exploration and evaluation expenditure (745,960) (1,299,567)
Payment for investments - (488)
Net cash (used in) investing activities (768,155) (1,309,251)
Cash flows from financing activities
Proceeds from share issue 963,525 933
Share issue costs (52,676) -
Net cash provided by financing activities 910,849 933
Net increase /(decrease) in cash and cash
equivalents held (681,949) (1,533,567)
Cash and cash equivalents at the beginning
of the reporting period 1,451,496 2,502,065
Effects of exchange rate changes on cash
and cash equivalents (31,162) (37,339)
Cash and cash equivalents at the end of
the reporting period 8 738,385 931,159
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 CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
For the Half Year Ended 31 December 2007
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 2007 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 2007 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 2007 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 2007 and considered together with any public
announcements made by Oropa Limited and its controlled entities during the half-year ended 31
December 2007 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 2007, except for the
adoption of amending standards mandatory for annual periods beginning on or after 1 July 2007 as
described in Note 2(c).
(c) Changes in accounting policies
Since 1 July 2007 the Group has adopted the following Standards and Interpretations mandatory for
annual periods beginning on or after 1 January 2007. Adoption of these Standards and
Interpretations did not have any effect on the financial performance or position of the Group.
• AASB 7 Financial Instruments: Disclosures
• AASB 2005-10 Amendments to Australian Accounting Standards (AASB
132,101,114,117,133,139,1,4, 1023 and 1038)
• AASB 2007-04 Amendments to Australian Accounting Standards arising from ED 151 and
other amendments
• AASB 2007-7 Amendments to Australian Accounting Standards (AASB 1, 2, 4, 5, 107 and
108)
OROPA LIMITED 22
HALF YEAR REPORT
OROPA LIMITED AND CONTROLLED ENTITIES
ACN 009 241 374
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
For the Half Year Ended 31 December 2007
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES CONTINUED
(d) Going Concern
The condensed 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 are confident that the Company will be successful in raising further capital and,
accordingly, have prepared the financial report on a going concern basis.
(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 2007.
CONSOLIDATED
31.12.2007 31.12.2006
$ $
3. OPERATING LOSS
Operating loss from ordinary activities before
income tax has been determined after:
(a) Crediting as revenue:
Interest received 13,925 51,115
Foreign exchange gain - -
(b) Charging as expense:
Depreciation 7,153 2,460
Exploration expenditure 1,289,133 1,278,534
written off
Foreign exchange loss 223,292 421,102
OROPA LIMITED 23
HALF YEAR REPORT
OROPA LIMITED AND CONTROLLED ENTITIES
ACN 009 241 374
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
For the Half Year Ended 31 December 2007
4. SEGMENT INFORMATION
Primary Reporting – geographical segments
The geographical segments of the consolidated entity are as follows:
Half year 2007
Australia
$
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)
Half year 2006
Australia
$
South East
Asia
$
India
$
Unallocate
d
$
Consolidate
d
$
Total Segment
Revenue
51,115 - - - 51,115
Segment Result
(839,005)
(1,190,930
)
-
-
(2,029,935)
5. SUBSEQUENT EVENTS
Consultancy Contract
Director Philip Christie trading as Yellowmoon Gold Mines Pty Ltd has renegotiated his
consultancy agreement with Oropa Limited. This agreement comes into effect on 10 January
2008 and runs for a period of three years. Consultancy fees of $17,500 is payable per month.
Should the contract be terminated prior to the expiry date of the consultancy agreement a
termination fee will be payable up to a maximum of $425,000.
The directors of Oropa Limited have passed a directors resolution to effect this.
Share Placement
On 14 March 2008 a placement of 13,347,483 ordinary shares at 4c each was made by the
company. Funds of $533,900 were raised from the placement and costs of $3,550 were
incurred being ASX listing fees.
6. CONTINGENT LIABILITIES
There has been no change in contingent liabilities since the previous annual reporting date.
OROPA LIMITED 24
HALF YEAR REPORT
OROPA LIMITED AND CONTROLLED ENTITIES
ACN 009 241 374
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
For the Half Year Ended 31 December 2007
31.12.2007 30.06.2007
$ $
7. ISSUED CAPITAL
Ordinary shares
Issued & fully paid 34,322,825 33,411,976
31.12.2007 31.12.2007
Number $
Movements in ordinary shares on issue:
As at 1 July 2007 145,349,328 33,411,976
12 October 1 -
17 October 2007 10,300,555 463,525
16 December 2007 10,000,000 500,000
Share issue costs - (52,676)
165,649,884 34,322,825
Options
As at 28 February 2008, the Company had the following listed options:
- 12,791,440 options to subscribe for fully paid ordinary shares exercisable at 20 cents at
any time on or before the expiry date of 31 January 2010.
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 January 2009.
- 500,000 options to subscribe for fully paid ordinary shares exercisable at 12 cents at any
time on or before the expiry date of 20 October 2008.
31.12.2007 31.12.2006
$ $
8. RECONCILIATION OF CASH
Cash and cash equivalents 738,385 931,159
Restricted cash - 12,643
738,385 943,802
Included in cash and cash equivalents is restricted cash of $23,948.
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 2007 includes a Bank Guarantee of AUS $20,000 and an
Import Letter of Credit of US $24,267.
OROPA LIMITED 25
HALF YEAR REPORT
OROPA LIMITED AND CONTROLLED ENTITIES
ACN 009 241 374
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
For the Half Year Ended 31 December 2007
9. RELATED PARTIES
Wholly-owned Group
The wholly-owned group consists of Oropa Limited and its wholly-owned subsidiaries Inland
Goldmines Pty Limited, Excelsior Resources Limited, Oropa Technologies Pty Limited and
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 2007 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 $518,093 in its accounts for the period ended 31 December 2007 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.
Other related parties
Aggregate amounts receivable from related parties in the wholly owned group at balance date
were as follows:
31.12.2007 30.06.2007
$ $
Non current receivables 11,049,349 10,531,257
Provision for Doubtful Debts (11,049,349) (10,531,257)
- -
OROPA LIMITED 26
HALF YEAR REPORT
OROPA LIMITED AND CONTROLLED ENTITIES
ACN 009 241 374
DIRECTORS’ DECLARATION
The directors declare that
1. The condensed consolidated financial statements and notes set out on pages 17 to 25:
(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 2007
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 14h day of March 2008
PC CHRISTIE
Director