Miles Can you confirm if the following is true or false?
Greenland Minerals revealed a $164 million blow-out to its net loss for 2007-08 financial year. Instead of notching a $38.54 million accumulated loss, Greenland Minerals revised that to $202.96 million.
Instead of spending $87.7 million on ''capitalised expenditure and evaluation expenditure'', as stated last financial year, Greenland Minerals shareholders have been told that figure was $22.3 million.
Instead of $34 million of unexercised options on issue, Greenland Minerals has told shareholders it has $155 million in its ''option reserve''.
The information can be found on page 51 of the 71-page financial statement, in note 21 to its accounts. …………………………………………………………………….
Miles Can you confirm if the following is true or false? Shareholders have been told the acquisition of Chahood Capital, a company believed to be controlled by Shemessian, was wrongly counted as part of the ''capitalised exploration and evaluation expenditure'' under Australian Accounting Standard AASB 3, relating to ''business combinations''.
That deal should have instead be treated under Australian Accounting Standard AASB 2, relating to ''share-based payments''. The net result of that error is that $65.35 million was wrongly added to the company's mining expenditure costs. …………………………………………………………………………… Miles Can you confirm if the following is true or false? The note to the accounts also informs shareholders that the value of options and shares issued to corporate adviser Gravner ''did not appropriately reflect the relevant grant date and vesting conditions''. As a result, a further $127.6 million of options and $43.8 million of shares have been issued to Gravner in lieu of cash payment for services.
A spokesman for Greenland Minerals told Full Disclosure that the issuing of $127 million of options to Gravner was done ''with shareholder approval'' and that the changes to the previous year's profit were the result of a ''change in accounting practices''.
To further confuse shareholders, reference to the $127.6 million of options paid out is listed as ''$127,587 thousand''. A huge $171 million increase in equity-based payments made by Greenland Minerals last financial year is described in the accounts signed-off by Deloitte as ''$171,378 thousand''.
Greenland Minerals had included $156.5 million worth of unexercised options as equity ''reserves'' on the balance sheet.
Without including the unexercised options, Greenland Minerals has negative assets of $110 million. In addition to the remarkable value of options issued to Gravner, three Greenland Minerals' directors have also received $8.42 million of options each as a share-based payment. They were chief executive Roderick Claude McIlree and executive directors Jeremy Whybrow and Simon Cato.
…………………………………………………… Miles Can you confirm if the following is true or false?
As part of its corporate advisory deal with Gravner, Greenland Minerals is paying the company $20,000 a month in fees, plus $20,000 a month in expenses on a three-year contract worth more than $1.4 million. McIlree was on holiday and unavailable for comment yesterday.
Gravner was a corporate adviser to Boss Energy in 2007 - a company that attracted the attention of law enforcement agencies. In its top 20 shareholders were convicted drug trafficker Amad ''Jay'' Malkoun and bikie Adrian Pamplin.
Under the Boss Energy deal, Gravner was paid a cash retainer of $20,000 per month rising to $40,000 over a two-year period, plus expenses.
GGG Price at posting:
47.5¢ Sentiment: None Disclosure: Not Held
