tobyjack: Yes, the annual report was an interesting read. Page 5...

tobyjack: Yes, the annual report was an interesting read.

Page 5 - Likely developments and expected results -

Potential developments in the operations of the Group and the expected results of those operations in future financial years have not been included in this report as the inclusion of such information is likely to result in unreasonable prejudice to the Group.

Is this a standard notation, or is there more to it ?



Independent auditors report -


These conditions, along with other matters as set forth in Note 1(r), indicate the existence of a material uncertainty which may cast significant doubt about the company's and consolidated entity's ability to continue as going concerns and therefore, the company and consolidated entity may be unable to realize their assets and discharge their liabilities in the normal course of business.

Not exactly a vote of confidence, and does not sound like a company about to take on Mount Kare, particularly as many larger and more well funded mining company's have given it a crack and not faired so well.




Cambodian Assets - (The whole premise of the company listing on the ASX)


The tenements extension was not granted and the assets are to be treated as "abandoned areas"
On the bright side, I guess they do not need the 2 Cambodian employees receiving circa $450,000 in salary and expatriate expenses any more, therefore a potential saving, although it would have been nice to realize some potential income from the original plan. I might add here, that the PNG lease has yet to be renewed.



Legal proceedings -
Yes, as you correctly commented, the company has now disclosed this though not disclosed via an ASX announcement.
Assuming this is the same individual as mentioned in the SMH, a former Chairman and CFO dismissed for dishonesty (their words). A raise of the eyebrow perhaps ?
They did not mention the latest court case lodged in PNG by landowners, discussions of which on this thread have been colorful, however this was lodged after the last financial year end, and it has been announced to the market.
This brings into question in my mind, the validity of the highly publicised landowner study, if locals feel the need to lodge court cases.



Brian's loan -

Yes, as you correctly commented. A company who has raised over 100 million dollars, agrees to borrow $1,500,000 at 60% interest, pledges all the assets of the company against the loan (without shareholder approval ?) then defaults on repayment, kicking the interest charge to 80%.
The company was served default notices. I don't recall any of 'being in default' being released to the market, except in the annual report.
Yes, a variation was negotiated, and the breaches were waived, the loan increased and extended to end of 2014 and interest reduced to 25%.
He still also has security over the company's assets, the substance of which would seem increased during the variation discussions.
It seems surprising that a company appear so desperate as to agree to such terms, particularly as they announced they knocked back or reduced a $15 million equity placement as they had been approached by a potential cornerstone and Joint Venture partner.
However, in my mind, to then agree to the terms of this loan, and then place the asset essentially 'for sale on the internet', seeking funding and joint venture partners, is somewhat confusing.
I might try to sell my car on the internet, but you would think the new financiers would have contacts in which to call.
I wonder if they approached the landowners who they announced participated in a capital raising, and who's shares were to be listed on the Port Moresby Stock Exchange (Pomsox).

As of today, no IDC shares have ever traded on Pomsox.



Note 24: Commitments and Contingencies -

Summit Development Limited, a wholly owned subsidiary of the Indochine Group, is required to pay compensation to the landowners of Exploration License "EL1093"
It says that Management and the Board are of the opinion that the maximum potential liability for exploration work undertaken to date is not material, and that funds have been moved into a trust account held with the MRA..
There is no mention of the 10 percent free carried interest landowners will received till the end of the feasibility study as stated by the former CEO when standing on the top of Mount Kare, the video of which has been posted.
I wonder if they have accounted for this ?

All in all, a very interesting read for those posters that have an interest, or should I say invested interest in the success of IDC.