From Interim Financial Report 31 December 2008. ann 16/3/09.(c)...

From Interim Financial Report 31 December 2008. ann 16/3/09.

(c) Going Concern Note

The Group experienced losses from ordinary activities after income tax for the half year of $3,801,451 and
net cash outflows from operating activities for the half year of $862,308 whilst current assets exceeded current liabilities by $530,390.

The copper smelting plant has been placed on “care & maintenance” and the assets in the Democratic Republic of Congo have been offered for sale. Operating and administrative costs have been substantially reduced and the Board is examining various ways to continue to meet its business objectives which may include raising additional equity to meet future funding requirements.

The Directors therefore believe it appropriate to prepare the financial report on the going concern basis however if the measures noted above are unsuccessful the Group may be unable to continue as a going concern and may be unable to realise its assets and extinguish its liabilities in the normal course of business at the amount stated in the financial report.