worried?

Extract half yearly

Going concern

The accounts have been prepared on the going concern basis, which contemplates continuity of normal business activities and the realization of assets and settlements of liabilities in the ordinary course of business. The Consolidated Entity incurred a loss from ordinary activities of $3,508,478 for the half year ended 31 December 2011 (31 December 2010: $3,744,452 loss).

The net working capital position of the Consolidated Entity at 31 December 2011 was $135,990 (30 June 2011: $5,309,648) and the net movement in cash held during the half year was a decrease of $4,837,847.

The ability of the Consolidated Entity to continue to pay its debts as and when they fall due is dependent upon the Consolidated Entity successfully raising additional share capital and commencing production at its ferrotungsten plant in Vietnam.
The Directors believe it is appropriate to prepare these accounts on a going concern basis because:

the Directors have an appropriate plan to raise additional funds as and when they are required. In light of the Consolidated Entity’s current projects, the Directors believe that the additional capital required can be raised in the market; and

the Directors have an appropriate plan to contain certain operating and exploration expenditure if appropriate funding is unavailable.

Should the Consolidated Entity not be successful in its planned capital raisings, it may be necessary to sell some of its assets, farm out exploration projects, or reduce exploration expenditure by various methods including surrendering less prospective tenements. Although the Directors believe that they will be successful in these measures, if they are not, the Consolidated Entity may be unable to continue as a going concern and therefore may be unable to realise its assets and extinguish its liabilities in the normal course of business and at the amounts stated in the financial report.

SUBSEQUENT EVENTS
Since 31 December 2011, the Company has entered into shareholder loan agreements for funds totaling $400,000.