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, which has been given to the directors of Cleveland Mining Company Limited, would be in the same terms if given to the directors as at the time of this auditor’s review report.
Basis for Disclaimer of Review Conclusion We draw attention to Note 1 ‘Going Concern’ in the half-year financial report which indicates that the consolidated entity incurred a net loss of $9,407,444, and experienced net cash outflows from operating activities of $2,066,338 during the half-year ended 31 December 2015, and as of that date, the consolidated entity’s current liabilities exceeded its current assets by $28,495,391.
The Directors have satisfied themselves as to the appropriateness of the going concern assumption on the basis that:
Additional funds will be available to the Company during Q2 of calendar year 2016, including A$2 million in April 2016, that will be sufficient to meet the consolidated entity’s immediate obligations;
Forecast production and gold sales from the Premier project are achieved as planned, to amongst other things fulfil scheduled principal and interest repayments due throughout Q2 and Q3 of calendar year 2016;
Further fundraising / refinancing will be achievable, if required, prior to 19 September 2016 to enable the repayment of the Group’s borrowings;
Existing creditors in Brazil and Australia continue to support the Group in not demanding payment of outstanding amounts.
At the date of this report, we have not been able to obtain sufficient appropriate evidence to support the achievement of the matters described above. Further, the statement of financial position as at 31 December 2015 includes the recognition of other financial assets, plant and equipment and exploration and development assets which are expected to be realised in future years.
The ability to recover the carrying values of these other financial assets, plant and equipment and exploration and development assets is dependent on successfully achieving the matters outlined in Note 1 ‘Going Concern’, and the consolidated entity continuing as a going concern.
These conditions, along with other matters as set forth in Note 1 ‘Going Concern’, indicate the existence of material uncertainties which may cast significant doubt about the consolidated entity’s ability to continue as a going concern and whether it will realise its assets and discharge its liabilities in the normal course of business.
Given the above circumstances, in our opinion, the uncertainties are so material and pervasive that we are unable to express a conclusion on the financial report taken as a whole.
CDG Price at posting:
3.2¢ Sentiment: Sell Disclosure: Not Held
