Financial Report for Half Year Ended 31 December 2011
The Company reported a net loss for the Consolidated Entity for the period to 31 December 2011 of $50.7m. The result includes $35.8m for discontinuing operations associated with the sale of the Company's interests in Crosslands Resources Ltd and the Oakajee Port and Rail infrastructure projects including $25m for settlement of the Chameleon litigation, $8m in connection with the RCF debt facility and other transaction costs.
Immediately following completion of the Mitsubishi transaction on 20 February 2012, the Company commenced working on an application to the Australian Taxation Office for a class ruling to enable the Company to distribute the net cash proceeds from the Mitsubishi transaction to shareholders as a return of capital (Distribution Process).
In parallel with the Distribution Process, the Board will also assess the merits of investment opportunities in the natural resources sector that are presented to, or identified by, the Company which have the potential to enhance shareholder value. If no such opportunities are identified by mid-April, the Company will concentrate solely on preparation for implementing the Distribution Process.
In the interim, the Company is reviewing options to divest its other assets, which include the Rocklea iron ore project, a 3.2% in the unlisted company Cashmere Iron and a number of exploration tenements.
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Murchison Metals Limited