$10m royalty plus for a $20m debt fascilityNah, it's $15m...

$10m royalty plus for a $20m debt fascility

Nah, it's $15m royalty for a $20m debt facility the $10m has been recognized for the year. The issue is when should it have been recognized/disclosed in the accounts… likely non-disclosure issues for the half yearly here? Re: note 14 wishy washy explanation … thought Conti was an established miner???

If the royalty had of been accounted for in the half yearly its likely solvency issues would have been flag by some at the time IMO.

...let's not forget the Vanmag saga - goes on & on & on


Note 14: Other financial liabilities
For the year ended 30 June 2011, the Group disclosed a contingent liability in relation to a US $1 per tonne royalty on all coal produced by the Group’s South African mining operations, capped at 15,000,000 tonnes.

As a result of the Group firmly establishing its position as an operating mining entity in the year ended 30 June 2012, the Group has determined that the royalty previously disclosed as a contingency has now become a liability at 30 June 2012.

The royalty arises from a financing arrangement entered into in a prior financial year, which has been extinguished by 30 June 2012. Accordingly, the expense in relation to the royalty of $10,435,131 considered to be a financing cost and is included within financing expenses in the 30 June 2012 Statement of Comprehensive Income. However the royalty is only payable in respect of coal produced at the Group’s operations in South Africa.