NOTES TO THE RESULTS ANNOUNCEMENT

1. Basis on preparation

(a) Statement of compliance

The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRSs") as issued by the International Accounting Standards Board ("IASB") and as adopted by the European Union, and the Companies Act 2006 as applicable to entities reporting in accordance with IFRS.

(b) Basis of measurement

The consolidated financial statements have been prepared on the historical cost basis.

(c) Functional and presentation currency

These consolidated financial statements are presented in Pounds Sterling ("GBP"), which is considered by the Directors to be the most appropriate presentation currency to assist the users of the financial statements. All financial information presented in GBP has been rounded to the nearest thousand, except when otherwise indicated.

The Company's functional currency is considered to be the US Dollar ("USD") as this currency mainly influences sales prices and expenses.

 (d) Use of estimates and judgements

The preparation of the consolidated financial statements in conformity with IFRS requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised if the revision affects only that period, or in the period of revision and future periods of the revision if it affects both current and future periods.

Critical estimates and assumptions that have the most significant effect on the amounts recognised in the consolidated financial statements and/or have a significant risk of resulting in a material adjustment within the next financial year are as follows:

·    Carrying value of goodwill

·    Capitalisation of pre-production expenditure

·    Precious metals on hand and in process

Accounting entries are made in accordance with the accounting policies detailed below.

2. Earnings per share

 Basic earnings per share

The calculation of basic earnings per share at 30 June 2019 was based on the loss attributable to owners of the Company of £2,234,000 (2018: loss £213,000), and a weighted average number of ordinary shares outstanding of 167,441,000 (2018: 167,441,000), calculated as follows:

Loss attributable to ordinary shareholders

                                                                            2019                2018

                                                                     £'000               £'000

Loss attributable to

owners of the Company                                                                       (2,234)               (213)

Weighted average number of ordinary shares

                                                                            2019                2018

                                                                     £'000               £'000

Issued ordinary shares at 1 July                                                      167,441,000     167,441,000

Weighted average number of ordinary shares at 30 June         167,441,000     167,441,000

Diluted earnings per share

Diluted earnings per share at 30 June 2019 and 30 June 2018 have not been calculated as the effect would be antidilutive.

3.   Directors' emoluments 2019

2018

Key management

Apart from the Directors, the emoluments paid to key management personnel amounted to £877,000 (2018: £857,000).

4. Related parties

Other than the waiver of intercompany interest and not having fix repayment dates, transactions with related parties take place on terms no more favourable than transactions with unrelated parties.

Other related party transactions

Transactions with Group companies

The Group's subsidiary Gold Mineral Resources Limited had the following related party transactions and balances:

The Group's subsidiary Goldplat Recovery (Pty) Limited had the following related party transactions and balances:

The carrying value of these assets approximates to their fair value and require no impairment.

 

The Group's subsidiary, Gold Recovery Ghana Limited had the following related party transactions and balances in addition to those already noted:

The Group's subsidiary Midas Gold had the following related party transactions and balances in addition to those already noted:

Other transactions

The Company and Group's subsidiary Gold Mineral Resources had the following related party transactions and balances in addition to those already noted: