Avocet Mining PLC Prospectus December 2011

c105718pu050 Proof 5: 7.12.11_13:41 B/L Revision:
exercise significant influence over the activities of Avion. Therefore, the shares were accounted for as
an available for sale financial asset and were measured at fair value, with gains or losses on remeasurement
recognised in equity. The Avion shares were disposed of in 2011.
The addition during the nine months ended 31 December 2009 related to the receipt of 475,000 shares
in Monument Mining Limited in September 2009, at a market value of US$132,000.
The addition during the twelve months ended 31 March 2009 represented the receipt of 8,125,003
warrants at CAD$0.50 in Monument Mining as consideration for the sale of a ball mill. The
disposals of US$354,000 during the same year related to the cancellation of the shares in Dynasty.
20. DEFERRED TAX
At At At At
31 March 31 December 31 December 30 June
2009 2009 2010 2011
Assets US$000 US$000 US$000 US$000
At 1 April/1 January 16,512 6,482 5,866 1,459
Income statement movement (10,030) (616) (2,430) —
Transfer to disposal group — — (1,977) —
At period end 6,482 5,866 1,459 1,459
The income statement expense in 2010 reflects a reassessment of the extent to which deferred tax
assets might be recoverable against future taxable profits in the UK, following the agreement to sell
the Group’s assets in South East Asia.
Amounts transferred to the disposal group represent deferred tax assets in relation to the Penjom
mine in Malaysia.
At At At At
31 March 31 December 31 December 30 June
2009 2009 2010 2011
Liabilities US$000 US$000 US$000 US$000
At 1 April/1 January 3,579 4,417 4,625 9,593
Movement in equity — — 652 —
Income statement movement 838 208 8,439 3,737
Transfer to disposal group — — (4,123) —
At period end 4,417 4,625 9,593 13,330
At 30 June 2011 the Group had a deferred tax liability of US$13.3 million in relation to continuing
operations. This liability was recognised in relation to temporary differences on Inata development
costs and property, plant, and equipment following the extension of the life of mine plan. At
31 December 2010 the Group had deferred tax liabilities of US$9.6 million in relation to continuing
operations.
Deferred tax liabilities of US$4.0 million in relation to temporary differences on property, plant and
equipment at Penjom were included in liabilities of the disposal group held for sale at 31 December
2010.
The movement in equity relates to deferred tax previously recognised in equity on the revaluation of
fair value of shares held in Monument Mining and Dynasty (note 10). The shares were sold during
2010 and all historic revaluations, and deferred tax thereon, were reversed through equity and
recognised in the income statement.
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