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Whitehaven Coal Limited : Annual Report 2010
78 NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2010 7.S IGNIFICANT ITEMS Consolidated In thousands of AUD 2010 2009 Consideration on sale of 7.5% (2009: 15%) of Narrabri joint venture interest 125,000 285,345 Transaction costs (167) (520) Assets disposed (10,519) (23,210) Gain on sale of joint venture interest1 114,314 261,615 Share based compensation2 (16,683) -- Restructure costs3 -- (2,444) Employee on-costs adjustment4 -- (1,145) Due diligence costs and project costs5 (2,375) (3,349) Reimbursed due diligence costs -- 2,100 Financial income on unwinding of discount of EDF receivable6 4,511 7,604 Finance costs on retranslation of EDF receivable6 (7,223) (24,180) Significant items before tax 92,544 240,201 Applicable income tax expense (32,768) (73,307) Significant items after tax 59,776 166,894 Reconciliation of significant items to face of Statement of Comprehensive Income: Other income: Gain on sale of joint venture interest1 114,314 261,615 Reimbursed due diligence costs -- 2,100 114,314 263,715 Administrative expenses: Restructure costs -- (2,444) Employee on-costs adjustment4 -- (1,145) Due diligence costs and project costs5 (2,375) (3,349) (2,375) (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 year, the Company sold a further 7.5% of its joint venture interest in the Narrabri North Project to a Korean consortium, comprising Daewoo International Corporation (Daewoo) and Korea Resources Corporation (KORES), for A$125 million, plus 7.5% of all costs incurred since 1 January 2008. The sale takes the Company's interest in the project down to 70%. The consortium will pay the A$125 million in three tranches. The first and second tranches of $32.5 million and $30 million were received during the year, as well as the consortiums 7.5% share of project development costs incurred since 1 January 2008. The third tranche of $62.5 million became payable on approval for stage 2 of the Narrabri Project from the NSW Government which was received in July 2010 (see note 32). 2 This expense relates to the issue of executive shares and executive options. The Board committed to issue these shares and options on 19 February 2009. These shares and options were subsequently approved by shareholders at the AGM on 17 November 2009. Accounting standard AASB 2 deems the issue date of these shares and options to be the date shareholder approval was formally received. Accordingly, the company is required to account for the issue based on the prevailing share price at the date of the AGM. 3 Following strategic management changes to the Group, the corporate office was relocated from Brisbane to Sydney in the prior year. This resulted in costs of $2,444,000 associated with redundancies and office closures. 4 During the prior year the Group was made aware of an underpayment of employee on-costs. Management recorded a provision for the amounts due to be paid and associated fees for late payment. 5 During the year the Group undertook due diligence on a number of projects in relation to corporate and asset transactions. 6 A receivable arising on a previous sell down of the Narrabri North Project is denominated in US$ and has been discounted on initial recognition. At the reporting date the receivable has been retranslated to Australian dollars at current exchange rates, and the discount partially unwound. The resulting income and expense have been disclosed as significant items.
Annual Report 2009
Annual Report 2011