Ann: June Quarter 2009 Activities and Cashflow Re, page-12

re: Ann: June Quarter 2009 Activities and Cas... 27 July 2009
Quarterly Report for the three months ending 30 June 2009
Phu Kham Copper‐Gold Operation, Laos
• Production for the June quarter was 47,282t of concentrate containing 10,760t copper for
total first‐half 2009 production of 23,910t copper. In addition, by‐products comprising
10,523oz gold and 86,136oz silver were produced during the June quarter
• Production in July has recovered strongly after June quarter performance was adversely
impacted by unplanned process plant stoppages, lower recoveries and lower ore
processing rates
• Recovery rates have improved significantly in July and increased copper production is
anticipated through the second half of 2009 as further recovery improvement initiatives
are implemented together with scheduled higher ore processing rates and higher ore
grades
• Cash costs (C1 ‐ net of by‐product credits) peaked during the June quarter for an average
of US$1.15/lb reflecting lower copper production for an average of US$0.91/lb for the firsthalf
of 2009
• 2009 production guidance has been revised to 60,000t of copper (±5%) in concentrate at
an average cash cost of US$0.85/lb
Growth Projects
Ban Houayxai Gold‐Silver Project, Laos
• Final phase of feasibility study drilling 88% complete; drilling results have extended the
known mineralisation along strike to the northwest and south, and at depth
Puthep Copper Project, Thailand
• 33% increase in Measured/Indicated Mineral Resource
Corporate
• Successful Equity Offer raises A$143 million through an institutional placement, and
institutional and retail entitlement offers
• Goldman Sachs JBWere US$80 million subordinated debt facility retired
• Guangdong Rising Assets Management agree to invest approximately US$170 million to
acquire a 19.9% interest in PanAust
• Through the improvement in the price of copper and the delivery of concentrate since the
start of 2009, the Company’s 31 December 2008 provisional pricing liability of
approximately US$39.6 million was extinguished by mid‐July
• Phu Kham Operations made a quarterly operating cash flow contribution of
US$26.0 million1 before a provisional pricing adjustment of US$16 million carried forward
from the second‐half of 2008
1 Unaudited financial result
Page 2
Phu Kham Operations, Laos
Introduction
On 13 July 2009, the Operations achieved a milestone of 12‐months of continuous operation
without a Lost Time Injury. However, the uninterrupted LTI‐free run ended later in July.
June quarterly production was adversely impacted by low metallurgical recoveries as the Phu
Kham Copper‐Gold Operation mined and processed complex transitional ores; low ore
processing rates as a response to the complex metallurgy; and, an unplanned shutdown caused
by a SAG mill motor failure. June quarterly and half‐year production and cost statistics are
summarised in Table 1 below and presented in detail in Tables 3 and 4 in the Attachment.
Significant progress has been made in July, with a significant improvement in metallurgical
recoveries and throughput, and higher grade profile for the next six months enabling copper
production guidance for 2009 to target circa 60,000t.
Production performance
Table 1: June quarter 2009 production and cost summary
Phu Kham Operations
Production summary
Units
Jun Qtr
2009
Year to
date 2009
Copper in concentrate t 10,760 23,910
Gold in concentrate oz 8,363 18,809
Silver in concentrate oz 86,136 173,158
Gold in doré (Heap Leach) oz 2,160 8,050
C1 cash cost after precious metal credits2 US$/lb Cu 1.15 0.91
Further details of the production and cost performances are contained in Table 3 and Table 4 of the Appendix
The quantity of ore processed was 25% below budget for the June quarter. For much of the
quarter plant throughput continued to be limited to an annualised rate of around 11Mtpa to
allow longer residence time in the flotation plant in an effort to improve metallurgical recovery.
Plant throughput was also adversely impacted by an unplanned shutdown following a
breakdown of one of the SAG mill motors. Down time was limited to 11 days and a planned
seven‐day shutdown for a SAG mill reline was brought forward from July resulting in a net four
days of unscheduled downtime. The next major shutdown is planned for January 2010.
Copper recovery rates for the quarter averaged approximately 56% reflecting the variability and
mix of transitional ore types processed. Over the course of the next four months access to
additional ore mining areas as the open pit is expanded will provide flexibility for feeding the
plant with a blended ore product that is expected to lead to less variability in head grade and
improved copper recovery.
A program of recovery improvement initiatives has been implemented including revised
operating practices, plant scale trials of alternative reagents that show improved recoveries in
laboratory tests, regrind circuit optimisation and increase flotation capacity through the
conversion of conditioning tanks to flotation cells (planned for the current September quarter).
2 Based on invoiced pricing for gold and silver
Page 3
Use of alternative reagents has already resulted in improved copper recovery rates and further
trials are being undertaken.
Benefits from these initiatives have already started to be realised with the average copper
recovery rate for July to date increasing to average over 61% and over 64% during the last six
days.
Planned copper production for 2009 is skewed to the December half; a reflection of higher
recovery rates as improvement initiatives are implemented, together with a higher average
throughput rate and higher scheduled December quarter copper head grade. Concentrate
production for 2009 (estimated within a ±5% range) is expected to be approximately 240,000t
containing 60,000t of copper, 50,000oz to 60,000oz3 of gold and 300,000oz to 400,000oz of
silver.
Sales for the June quarter totalled 52,312dmt of copper‐gold concentrate and 1,913oz of heap
leach gold doré. The average copper price achieved for the quarter was US$2.01/lb.
Cost performance
The average cash cost (C1) for the June quarter of US$1.15/lb of copper after precious metal
credits4 was higher than that for the previous quarter largely reflecting the impact of lower
copper production and lower gold credits as gold doré production from the seasonal heap leach
gold operation was suspended (refer to Table 4 in the Attachment). The average cash cost for
the half‐year to 30 June 2009 was US$0.91/lb of copper after precious metal credits (Table 4).
Cash costs in 2009 are expected to average approximately US$0.85/lb copper after precious
metals credits5 (previous guidance US$0.80/lb). This positions Phu Kham as a competitive
copper producer in global terms.
Southern infill drilling
A program of infill drilling commenced within the southern pit area of the Phu Kham copper‐gold
deposit where a significant volume of above 0.3% copper cut‐off mineralisation lies beneath the
current open pit design limit. Three drilling rigs are being utilised and at the end of the quarter
the program was approximately 45% complete.
A similar program completed in 2007 in the north pit area led to an extension of the open pit
and consequent increase in the ore reserve through improved definition of the mineralised
system.
Expansion of Phu Kham Copper‐Gold Operation
PanAust plans to expand the Phu Kham process plant by 33% to a processing rate of 16Mtpa.
The purpose of the expansion is to enable the Operation to achieve annual copper production
levels of above 70,000t during periods of lower grade ore feed, mid‐mine life.
Ore reserve and scheduling work, adopting a life‐of‐mine copper price of US$1.75/lb, has
previously identified opportunities to maintain annual copper production under the current
12Mtpa mill configuration at between 60,000t and 70,000t until the end of 2011. On this basis,
the timing for a decision on the expansion will be deferred until the end of 2010 with conceptual
construction and commissioning to be completed in the first half of 2012.
3 Assumes 15,000oz of gold in doré from the Phu Kham Heap Leach Operation
4 Based on invoiced pricing for gold and silver
5 Assumes a gold price of US$900/oz and a silver price of US$12.5/oz
Page3


Growth Strategy ‐ back on track
PanAust is committed to progressing capital efficient organic growth opportunities (within the
Company’s Contract Area in Laos and at Puthep in Thailand), supported by the Company’s
flagship Phu Kham Operation.
With the injection of funds from the successful Equity Offer and expected conclusion of the
cornerstone investment by GRAM during the current September quarter, PanAust expects to be
in a strong position to proceed with its plans for growth backed by a strengthened balance sheet
and access to free cash flow from Phu Kham.
Ban Houayxai Gold‐Silver Project, Laos
The final program of feasibility study drilling continued during the quarter. Five drill rigs were in
operation and by the end of the quarter the drilling program was 88% complete. The aim of the
14,000‐metre program is to increase the size of the oxide‐transitional Mineral Resource and to
increase the proportion of mineralisation in the Measured and Indicated categories. Significant
drill results are summarised in Table 5 of the Attachment. Drilling has extended the zone of
mineralisation to the south and to the north and west as well as to depths of over 100m
vertically into deeper primary mineralisation.
PanAust is undertaking a feasibility study focused on the initial open‐pit mining and carbon‐inleach
(CIL) processing of the outcropping oxide and near‐surface transitional mineralisation. The
feasibility study work is scheduled to be completed at the end of 2009 for reporting in the March
quarter 2010.
The Ban Houayxai pre‐feasibility study completed in October 2008 identified the potential to
develop a low‐cost operation with annual production of 100,000oz to 130,000oz of gold and
700,000oz to 800,000oz of silver over a minimum six‐year mine life.
These levels of production would result in PanAust’s total annual gold production rising from the
2009 forecast of between 50,000oz and 60,000oz, to approximately 190,000oz and silver
production to rise over 1,000,000oz. If PanAust commits to the development of Ban Houayxai,
the Company’s ratio of revenue from gold and silver to revenue from copper would be
approximately 40:60 (assumes US$1.75/lb copper, US$900/oz gold and US$12.5/oz silver).
Puthep Copper Project, Thailand6
The feasibility study resource estimate (Table 2) was announced in May and incorporates data
from the 59,000‐metre infill drilling program which was completed in October 2008. This
program was successful in meeting the objective of elevating the confidence of the mineral
resource and resulted in an increase of 33% to 546,000t for estimated in‐situ contained copper
in the combined Measured and Indicated categories (0.3% copper cut‐off grade).
The resource estimate has been adopted for feasibility mining and engineering studies. The joint
venture goal is to complete a feasibility study to support the development of an operation with a
capacity to process 10‐12 million tonnes of ore per annum to produce 50,000 tonnes of copper
(for a PanAust equity share of at least 30,000 tonnes).
6 PanAust will earn a 51% interest in Puthep upon completing a feasibility study on the PUT1 deposit and has further options to
acquire a total 60% to 70% interest
Page 5
The feasibility is expected to be largely completed during 2009 for announcement in 2010. The
Project’s environmental and social impacts studies are being progressed in parallel with the
feasibility study and are expected to be completed in 2010.
Table 2: PUT 1 Mineral Resources as at 1 May 2009 (100% equity basis), Puthep Copper
Project, Thailand
0.3% copper cut‐off grade
Tonnes
(Mt)
Copper
Grade
(%)
Gold
Grade
(g/t)
Copper
In‐Situ
(000 t)
Gold
In‐Situ
(000 oz)
Measured 41 0.58 0.08 240 102
Indicated 60 0.51 0.10 306 186
Inferred 60 0.50 0.10 300 183
Total 160 0.53 0.09 846 471
The Mineral Resource estimates are based on an ordinary kriged model constrained by weathering and
geological boundaries.
Exploration
Regional exploration activities in Laos during the quarter comprised reconnaissance work and
soil sampling at various prospects within the Company’s 2,636 sq km Contract Area, which is
highly prospective and offers significant organic growth potential.
At the end of the September quarter, drilling programs will commence over several of these
prospects as the wet season ends thereby coinciding with more favourable field conditions. In
addition, Phu Kham resource extension drilling programs will commence after the current
southern infill program is completed.
Sustainability
Safety
The excellent safety performance at the Phu Kham Operations continued during the quarter.
On 13 July 2009, the Operations achieved a milestone of 12 months continuous operation
without an LTI. This was an outstanding result for a new operation in a developing country with
only a formative mining and safety culture, and is a credit to the workforce and leadership of
the Operation’s management team. The unbroken LTI‐free run ended in late July with the
occurrence of an LTI on 23 July 2009.
Across all Group activities (Phu Kham Operations, Project Implementation and Logistics, External
Affairs and Exploration), PanAust’s 12‐month rolling LTI frequency rate at the end of June was a
very low 0.58 LTI’s per million man‐hours. This is in stark contrast to the Australian open‐cut
metalliferous mining industry performance7
of 1.8 LTI’s per million man hours during 2007‐’08.
Environment
There were no reportable environmental incidents during the quarter.
7 Minerals Council of Australia Quarter 4, 2007‐’08 Safety Survey Report
Page 6
Local Community Projects, Laos
PanAust continues to advance a number of community development projects in the
neighbouring villages of Nam Mo and Nam Gnone in the areas of education, infrastructure and
business development.
Activities for the quarter included:
• Training in market garden techniques for the local farmers to further develop vegetable
production and sales to the Phu Kham accommodation camp
• Purchasing of rice from a number of local suppliers is being trialled
• Vaccination of livestock in the neighbouring villages was completed
Corporate Information
Financial performance (refer to Appendix 5B)
Phu Kham Operations contributed, before provisional pricing adjustments, approximately
US$26.0 million to Group operating cash flow in the June 2009 quarter and US$48.7 million in
the first half of 2009. Cash flow in the first half of 2009 was adversely impacted by provisional
pricing adjustments carried forward from the second half of 2008 of US$16.0 million and
US$32.5 million for the June quarter and first half of 2009 respectively (see below for further
detail).
Group operating cash flow was also adversely impacted at the corporate level by a one‐off
redemption fee of US$5.0 million associated with the repayment of the US$80 million
subordinated debt facility during the June quarter.
Provisional pricing adjustment
PanAust sells concentrate to copper traders and smelters on the industry standard basis
whereby, at the time of shipment, the buyer makes a provisional payment to PanAust, by way of
a provisional invoice, for the contained copper in the shipment at the prevailing London Metal
Exchange (LME) copper price. Final settlement of the payment is based on the average LME
copper price over a subsequent pricing period specified by the terms of the sale contract. That
pricing period can be a few days or one month and can commence up to three months after the
shipment date. The period commencing on the date of shipment to the end of the pricing period
is known as the Quotational Period (QP).
This pricing methodology is normal for the industry and the QP often reflects the average time to
elapse between the date of shipment and the date of processing by the smelter at final
destination.
At 31 December 2008, the Company recognised a provisional pricing liability of approximately
US$39.6 million on sales of copper in concentrate. Through the subsequent improvement in the
price of copper and the delivery of concentrate since the start of 2009, the US$39.6 million
liability was extinguished by mid‐July. Accordingly, there will be a substantial improvement in
free cash flow from Phu Kham through to the end of 2009.
During 2009, PanAust’s has entered into several copper forward swap contracts to cover
potential exposure to adverse copper price fluctuations through the QP for each shipment. The
Page 7
Company’s policy is to hedge the provisional copper price received for 50‐90% of the tonnes
delivered in every shipment.
At 30 June 2009, PanAust had concentrate sales containing 8,771t of payable copper subject to
price adjustment on final invoicing at an average provisional invoice price of US$2.05/lb copper.
For these sales, PanAust has hedging in place for a total of 7,000t copper at an average price of
US$2.02/lb.
Cash, debt and funding
At 30 June 2009, the Company had cash of US$36.1 million and debt of US$195.1 million
(excludes equipment lease facilities).
During the quarter, PanAust successfully raised approximately A$143 million through an Equity
Offer at an issue price of A$0.28 per share. The Offer comprised an institutional placement and
non‐renounceable entitlements offer. The Equity Offer was underwritten by ABN AMRO
Morgans Corporate Limited. Funds were used to retire the entire US$80 million subordinated
debt facility with Goldman Sachs JBWere. During the quarter shareholders approved the
issuance of 75 million options to Goldman Sachs JBWere associated with the extension of the
subordinated debt facility, which will result in a US$14.1 million non‐cash charge to income in
the accounts for the first half of 2009.
In addition to the Equity Offer, Guangdong Rising Assets Management (GRAM) plans to invest a
total of approximately A$216 million (approximately US$170 million) through a cornerstone
investment of A$180 million at A$0.395 per share and top up investment of A$35 million at
A$0.28 per share to acquire a 19.9% interest in PanAust. The investment by GRAM has received
Foreign Investment Review Board (FIRB) approval and was approved by PanAust shareholders at
an Extraordinary General Meeting held on 8 July 2009. GRAM has also received Chinese
provincial government and foreign exchange approvals for the investment and has progressed
submissions required for the final two Chinese regulatory approvals required before it can
proceed with its investment in PanAust.
The construction of the Phu Kham Copper‐Gold Operation was funded through a Facilities
Agreement with a syndicate of banks. The Company is close to agreement with the banks on
revised commercial terms for the debt facilities (currently US$195.1 million) and recognition of
final completion (a process whereby Phu Kham’s actual operating performance is compared
against prescribed benchmarks). Recognition of final completion effectively marks the transition
of the facility from a construction facility to a term facility.
As part of the negotiation with the banks, PanAust has agreed to reduce the debt by
US$100 million upon receipt of the investment funds from GRAM.
Issued capital
The issued capital of the Company at 30 June 2009 comprised:
2,348,521,565 Ordinary fully paid shares
36,944,000 Unlisted options
21,192,253 Unlisted share rights
Page 8
Directors
Garry Hounsell Non‐executive Chairman
Gary Stafford Managing Director
Geoff Billard Non‐executive Director
Andrew Daley Non‐executive Director
Geoff Handley Non‐executive Director
Nerolie Withnall Non‐executive Director
Registered & principal office
PO Box 3468, South Brisbane Qld 4101
Telephone: (07) 3117 2000
Facsimile: (07) 3846 4899
Securities Exchange Listing
Australian Securities Exchange Code: PNA
Indexation
PanAust is a constituent of the S&P/ASX 200
Index.
For further information contact:
Gary Stafford Managing Director
Allan Ryan Investor Relations Manager
Natalie Whale Communications Manager
PanAust Limited
PO Box 3468, South Brisbane Qld 4101
Telephone: (07) 3117 2000
Facsimile: (07) 3846 4899
Email: [email protected]
Website: www.panaust.com.au
Shareholder enquiries to:
Computershare Registry Services
PO Box 523, Brisbane Qld 4001
Telephone: 1300 552 270
Facsimile: (07) 3229 9860
Website: www.computershare.com.au
Competent Person Statement
The data in this report that relates to Exploration Results and Mineral Resources are based on information
reviewed by Mr Dan Brost who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Brost is
a full time employee of PanAust Limited.
Mr Brost has sufficient experience relevant to the styles of mineralisation and type of deposits under
consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the
2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore
Reserves.
Mr Brost consents to the inclusion in the report of the Exploration Results and Mineral Resources in the form
and context in which they appear.
Forward‐Looking Statements
This announcement includes certain “Forward‐Looking Statements”. All statements, other than statements of
historical fact, included herein, including without limitation, statements regarding production and cost
performances, potential mineralisation, mineral resources, exploration results and future expansion plans and
development objectives of PanAust Limited are forward‐looking statements that involve various risks and
uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and
future events could differ materially from those anticipated in such statements.
Page 9
Attachment
Table 3: Production statistics
Phu Kham Operations Units Jun Qtr 2009 YTD 2009
Total material mined t 6,076,293 12,667,246
Copper‐gold ore mined t 2,360,891 5,197,813
Copper head grade % 0.74 0.75
Gold head grade g/t 0.32 0.32
Silver head grade g/t 3.61 3.55
Ore milled t 2,604,620 5,393,906
Concentrate produced dmt 47,282 98,926
Copper in concentrate t 10,760 23,910
Gold in concentrate oz 8,363 18,809
Silver in concentrate oz 86,136 173,158
Gold in doré (Heap Leach) oz 2,160 8,050
Copper recovery % 55.9 59.1
Table 4: Production costs
Phu Kham copper production costs (US$/lb copper): June Qtr 2009 YTD 2009
Mining cost 0.40 0.32
Processing cost 0.45 0.52
General & Administration 0.23 0.18
Total on‐site operating costs 1.08 1.02
Transport handling and marketing 0.27 0.28
Concentrate treatment and refining 0.17 0.19
Total off‐site operating costs 0.44 0.47
Precious metal credits (0.37) (0.57)
Total direct operating costs (C1 cash cost) 1.15 0.91
Royalty 0.11 0.09
Depreciation and amortisation 0.37 0.38
Total costs 1.63 1.38
Average copper price received 2.01 1.77
Notes: Costs are based on payable copper in concentrate produced
Page 10
Table 5: Selected Ban Houayxai drill results
Hole No.
Depth of hole
From
(m)
Interval
(m)
Gold
Grade
(g/t)
Silver
Grade
(g/t) Comments
HDD074
102.7m
0.0
25.7
36.0
4.0
5.3
24.0
0.5
0.4
0.8
2.4
3.5
10.4
HDD081
98.6m
4.0
24.0
12.6
44.0
1.2
0.5
14.2
11.0
HDD083
171m
51.0
84.0
27.0
11.0
0.9
0.5
7.1
2.8
HDD084
225m
0.0
62.0
106.0
136.6
162.0
183.0
10.0
39.0
22.7
19.4
16.0
11.0
0.6
0.9
1.8
0.4
0.4
0.7
2.1
9.4
10.9
7.0
4.7
11.5
HDD089
212.9m
81.0
89.5
4.0
50.5
0.3
0.5
1.4
2.0
HDD090
197m
0.0
36.0
57.0
102.0
121.0
133.0
145.0
164.0
14.0
8.0
39.0
7.0
2.0
7.0
9.0
8.0
0.5
5.5
2.8
0.4
1.1
0.7
0.4
1.9
3.4
51.2
6.4
1.7
2.9
2.8
3.8
10.6
HDD091
238m
1.6
35.0
141.0
24.4
87.0
57.0
0.4
1.1
1.6
3.7
6.0
17.2
HDD092
183.5
0.0
10.0
33.0
57.0
105.0
117.0
2.0
2.0
5.0
13.0
4.0
12.0
0.5
5.9
0.4
6.1
0.7
0.4
2.3
161.0
2.2
7.6
1.3
1.3
HDD094
114m
0.0 17.0 3.3 27.5
HRC272
68m
0.0 47.0 0.6 21.6
HRC283
60m
38.0 22.0 1.0 16.7 Hole ended in >0.5g/t
gold and > 3.0g/t silver
mineralisation
HRC286
85m
0.0
81.0
29.0
4.0
1.1
0.4
4.2
1.6
Hole ended in >0.5g/t
gold and > 1.0g/t silver
mineralisation
HRC290
60m
0.0
25.0
7.0
35.0
0.5
0.9
1.1
7.0
Hole ended in >0.7g/t
gold and > 3.0g/t silver
mineralisation
HRC293
84m
30.0 54.0 0.8 12.3 Drill hole ended in
0.3g/t gold
mineralisation
HRC312
94m
23.0
55.0
22.0
3.0
0.9
1.0
4.0
9.4
Intersection grades are down‐hole length weighted calculations using a cut‐off grade of 0.3g/t gold.
Grades are rounded to one decimal place. All holes were drilled at ‐60deg to an azimuth of 180deg.
Appendix 5B
Mining exploration entity quarterly report
Appendix 5B Page 1
Rule 5.3
Appendix 5B
Mining exploration entity quarterly report
Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98.
Name of entity
PANAUST LIMITED
ACN or ARBN Quarter ended (“current quarter”)
011 065 160 JUNE 2009
Consolidated statement of cash flows
Cash flows related to operating activities
Current quarter
US$’000
Year to date
(6 months)
US$’000
1.1 Receipts from product sales and related debtors
57,070 131,306
1.2 Payments for (a) exploration and evaluation
(b) development/tailings storage
(c) production
(d) administration
(1,609)
(3,494)
(44,109)
(9,505)
(3,199)
(10,119)
(104,978)
(15,548)
1.3 Dividends received - -
1.4 Interest and other items of a similar nature received 33 48
1.5 Interest and other costs of finance paid (9,819) (14,648)
1.6 Income taxes paid - -
1.7 Other deposits - -
Net Operating Cash Flows
(11,433)
(17,139)
Cash flows related to investing activities
1.8 Payment for purchases of: (a)prospects
(b)equity investments
(c) other fixed assets
-
(596)
(4,865)
-
(2,614)
(12,119)
1.9 Proceeds from sale of: (a)prospects
(b)equity investments
(c)other fixed assets
-
-
-
-
-
-
1.10 Loans to other entities - -
1.11 Loans repaid by other entities - -
1.12 Other (provide details if material) - -
Net investing cash flows
(5,461)
(14,733)
1.13 Total operating and investing cash flows (carried
forward)
(16,894)
(31,872)
Appendix 5B
Mining exploration entity quarterly report
Appendix 5B Page 2
1.13 Total operating and investing cash flows (brought
forward)
(16,894)
(31,872)
Cash flows related to financing activities
1.14 Proceeds from issues of shares, options, etc. 116,214 146,687
1.15 Proceeds from sale of forfeited shares - -
1.16 Proceeds from borrowings - -
1.17 Repayment of borrowings (83,024) (84,954)
1.18 Dividends paid - -
1.19 Other - -
Net financing cash flows 33,190 61,732
Net increase (decrease) in cash held
16,296
29,861
1.20 Cash at beginning of quarter/year to date 19,810 6,245
1.21 Exchange rate adjustments to item 1.20 - -
1.22 Cash at end of quarter 36,106 36,106
Payments to directors of the entity and associates of the directors
Payments to related entities of the entity and associates of the
related entities
Current quarter
US$'000
1.23
Aggregate amount of payments to the parties included in item 1.2
420
1.24
Aggregate amount of loans to the parties included in item 1.10
-
1.25
Explanation necessary for an understanding of the transactions
Amounts represented in 1.8(b) relate to the exploration & evaluation of the Puthep deposit.
Non-cash financing and investing activities
2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and
liabilities but did not involve cash flows
The Subordinated Debt Facility held with GSJBWere was fully repaid in June 2009. Amounts recorded under
section 1.17 represent the repayment of this facility as well as the quarterly finance lease payments of
US$1.930 million.
2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reporting
entity has an interest
Appendix 5B
Mining exploration entity quarterly report
Appendix 5B Page 3
Financing facilities available
Add notes as necessary for an understanding of the position.
Amount available
US$’000
Amount used
US$’000
3.1 (a) Loan facilities
(b) Equipment Lease Facilities
$195,100
$42,708
$195,100
$42,708
3.2 Credit standby arrangements
- -
Estimated cash outflows for next quarter
US$’000
4.1 Exploration and evaluation
2,500
4.2 Development
3,950
Total 6,450
Reconciliation of cash
Reconciliation of cash at the end of the quarter (as shown in
the consolidated statement of cash flows) to the related items
in the accounts is as follows.
Current quarter
US$’000
Previous quarter
US$’000
5.1 Cash on hand and at bank 13,606 15,580
5.2 Deposits at call 22,500 4,230
5.3 Bank overdraft - -
5.4 Other (provide details) - -
Total: cash at end of quarter (item 1.22) 36,106 19,810
Changes in interests in mining tenements
Tenement
reference
Nature of interest
(note (2))
Interest at
beginning of
quarter
Interest at
end of
quarter
6.1 Interests in mining
tenements relinquished,
reduced or lapsed
NIL
6.2 Interests in mining
tenements acquired or
increased
NIL
Appendix 5B
Mining exploration entity quarterly report
Appendix 5B Page 4
Issued and quoted securities at end of current quarter
Description includes rate of interest and any redemption or conversion rights together with prices and dates.
Total number Number quoted Issue price per
security (see note
3) (cents)
Amount paid up per
security (see note 3)
(cents)
7.1 Preference
+securities
(description)
7.2 Changes during
quarter
(a) Increases
through issues
(b) Decreases
through returns of
capital, buy-backs,
redemptions
7.3 +Ordinary
securities
2,348,521,565
2,348,521,565
NA
NA
7.4 Changes during
quarter
(a) Increases
through issues
(b) Decreases
through returns of
capital, buy-backs
508,809,866
75,000,000
1,000,000
157,169
508,809,866
75,000,000
1,000,000
157,169
28 cents
10.5 cents
32 cents
Nil
28 cents
10.5 cents
32 cents
Nil
7.5 +Convertible debt
securities
(description)
7.6 Changes during
quarter
(a) Increases
through issues
(b) Decreases
through securities
matured, converted
7.7 Options/Share
Rights (description
and conversion
factor)
58,136,253
0
Exercise price
See Attached
Expiry date
See Attached
7.8 Issued during
quarter
110,029,837
0
See Attached
See Attached
7.9 Exercised during
quarter
76,157,169
0
As per 7.4
As per 7.4
7.10 Expired during
quarter
12,525,179
0
7.11 Debentures
(totals only)
7.12 Unsecured notes
(totals only)
Appendix 5B
Mining exploration entity quarterly report
Appendix 5B Page 5
Compliance statement
1 This statement has been prepared under accounting policies which comply with
accounting standards as defined in the Corporations Law or other standards acceptable
to ASX (see note 4).
2 This statement does give a true and fair view of the matters disclosed.
Sign here: ............................................................ Date: 27 July 2009
(Company Secretary)
Print name: .....Paul Scarr....................................................
Notes
1 The quarterly report provides a basis for informing the market how the entity’s activities
have been financed for the past quarter and the effect on its cash position. An entity
wanting to disclose additional information is encouraged to do so, in a note or notes
attached to this report.
2 The “Nature of interest” (items 6.1 and 6.2) includes options in respect of interests in
mining tenements acquired, exercised or lapsed during the reporting period. If the
entity is involved in a joint venture agreement and there are conditions precedent which
will change its percentage interest in a mining tenement, it should disclose the change of
percentage interest and conditions precedent in the list required for items 6.1 and 6.2.
3 Issued and quoted securities The issue price and amount paid up is not required in
items 7.1 and 7.3 for fully paid securities.
4 The definitions in, and provisions of, AASB 1022: Accounting for Extractive Industries
and AASB 1026: Statement of Cash Flows apply to this report.
5 Accounting Standards ASX will accept, for example, the use of International
Accounting Standards for foreign entities. If the standards used do not address a topic,
the Australian standard on that topic (if any) must be complied with.
== == == == ==
Appendix 5B
Mining exploration entity quarterly report
Appendix 5B Page 6
PANAUST LIMITED
QUARTERLY REPORT
FOR THE QUARTER ENDING 30 JUNE 2009
ISSUED OPTIONS AT 30 JUNE 2009
NUMBER ISSUED
EXERCISE PRICE
CENTS
EXPIRY DATE
8,050,000 38.00 29/02/2012
750,000 81.00 07/10/2012
1,980,000 88.00 31/12/2012
4,400,000 88.00 31/12/2012
364,000 78.00 30/06/2013
4,200,000 30.50 31/12/2013
17,200,000 42.12 31/12/2013
36,944,000
ISSUED EMPLOYEE SHARE RIGHTS AT 30 JUNE 2009
NUMBER ISSUED
EXERCISE PRICE
CENTS
EXPIRY DATE
Performance Conditions
1,875,000 NIL 31/03/2017
1,970,000 NIL 31/12/2017
214,000 NIL 30/06/2018
202,703 NIL 30/09/2018
11,600,000 NIL 31/12/2018
No Performance Conditions
5,330,550 NIL Various 2017 -2019
21,192,253