Update on Merger with Polymetals - Notice of Meeting

5.4 Historical Statement of Comprehensive Income
Southern Cross Goldfields Limited
Unaudited for the
nine months
ended 31 M arch
2013
Reviewed for the
half-year ended
31 December 12
Audited for the
year ended 30
June 2012
Audited for the
year ended 30
June 2011
Statement of Comprehensive Income $ $ $ $
Revenue
Gain on sale of tenements 39,228 1,100 1,933,907 1,830,105
Other income 83,705 89,767 203,057 123,349
Expenses
Depreciation (95,874) (66,192) (128,549) (97,192)
Salaries and employee benefits - - (950,299) (363,007)
Exploration (2,392,918) (1,624,064) (5,205,431) (6,335,047)
Pre-development expenditure (2,702,603) (1,577,044) - -
Impairment of exploration expenditure - (66,349) (113,887) (110,478)
Corporate expenses - - (878,063) (591,462)
Administration expenses (1,358,411) (1,121,496) (312,999) (235,583)
Share based payments expense (63,873) (63,873) (286,176) (412,652)
Loss from continuing operations before
income tax (6,490,746) (4,428,151) (5,738,440) (6,191,967)
Income tax expense - - - -
Total comprehensive loss for the
year/period (6,490,746) (4,428,151) (5,738,440) (6,191,967)
Source: SXG’s audited annual 2011 and 2012 annual reports, reviewed financial statements for the 6 month period until
31 December 2012 and unaudited management accounts for the nine months period ended 31 March 2013.
We have not undertaken a review of SXG’s unaudited accounts in accordance with Australian Auditing and
Assurance Standard 2405 “Review of Historical Financial Information” and do not express an opinion on
this financial information. However nothing has come to our attention as a result of our procedures that
would suggest the financial information within the management accounts has not been prepared on a
reasonable basis.
Commentary on financial statements
In the period 30 June 2011 to 31 March 2013, SXG’s net asset position fell by 25% from $5.21 million to
$3.92 million. This has been driven by a $6.48 million increase in total liabilities and partially offset by a
$5.18 million increase in total assets.
The increase in liabilities at 31 March 2013 is due to the negotiation of a $7 million financing facility
provided by RMB Australia Holdings Limited in relation to SXG’s acquisition of the Sandstone Project
assets.
The increase in cash for the period ended 31 December 2012 was driven by a rights issue in August 2012,
the proceeds from which raised $5.2 million; part of the proceeds have been used in the ongoing
operations of the business. The $2.72 million increase in trade and other receivables relates to SXG’s
acquisition of an environmental bond in relation to the Sandstone acquisition. The $2.26 million increase
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