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Whitehaven Coal Limited : Annual Report 2009
Whitehaven Coal Limited -- Annual Report 2009 69 NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2009 7. SIGNIFICANT ITEMS Consolidated Consolidated In thousands of AUD 2009 2008 Consideration on sale of 15% of Narrabri joint venture interest 285,345 67,500 Transaction costs (520) -- Assets disposed (23,210) (11,871) Gain on sale of joint venture interest1 261,615 55,629 Restructure costs2 (2,444) -- Employee on-costs adjustment3 (1,145) -- Due diligence costs4 (3,349) -- Reimbursed due diligence costs 2,100 -- Finance costs on retranslation of EDF receivable1 (16,576) -- Significant items before tax 240,201 55,629 Applicable income tax expense (73,307) (16,689) Significant items after tax 166,894 38,940 Reconciliation of significant items to face of Income Statement: Other income: Gain on sale of joint venture interest 261,615 55,629 Reimbursed due diligence costs 2,100 -- 263,715 55,629 Administrative expenses: Restructure costs (2,444) -- Employee on-costs adjustment (1,145) -- Due diligence costs (3,349) -- (6,938) -- Significant items are amounts considered by the Company not to be in the normal course of operations and are generally one-off or non-recurring. 1 During the half-year period, the Company sold a further 15% of its joint venture interest in the Narrabri North Project, taking its interest in the project down to 77.5%. EDF Trading (EDFT) and Electric Power Development Co. Ltd (J-Power) each purchased 7.5% interests, joining Upper Horn Investments Limited (UHI), as joint venturers in this project. EDFT will pay the Company US$120 million in a series of tranches over the next three calendar years, and will contribute its 7.5% share of all development costs incurred since 1 January 2008. The receivable is denominated in US$ and has been discounted on initial recognition. At the reporting date the receivable has been retranslated and the discount unwound. The resulting expense has been disclosed as a significant item. J-Power agreed to pay the Company AU$125 million, to be settled in two tranches, plus J-Power's 7.5% share of project development costs incurred since 1 January 2008. The first tranche of AU$41.7 million was received during the year, as well as J-Power's 7.5% share of project development costs incurred since 1 January 2008. The second tranche will be payable when the Company obtains NSW Government approval for Stage 2 of the Narrabri Project. 2 Following strategic management changes to the Group, the corporate office was relocated from Brisbane to Sydney. This has resulted in costs of $2,444,000 associated with redundancies and office closures. 3 During the year the Group was made aware of an underpayment of employee on-costs. Management has recorded a provision for the amounts that are due to be paid and associated fees for late payment. As at 30 June 2009, $700,000 of the provision had been utilised for payment of employee on-costs. 4 During the year the Group undertook a number of due diligence projects in relation to potential acquisitions and mergers which did not proceed.
Annual Report 2008
Annual Report 2010