EX-99.2 3 ex99_2.htm EXHIBIT 99.2 ex99_2.htm
EXHIBIT 99.2
 
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NOTICE TO THE READER
 
The accompanying unaudited interim consolidated financial statements and all information contained in the attached 2011 Third Quarter Report have been prepared by and are the responsibility of the management of the Company.
 
The Audit Committee of the Board of Directors, consisting of three members, has reviewed the financial statements and related financial reporting matters.
 
The Company's independent auditors, Ernst & Young LLP, Chartered Accountants, have not performed a review of these consolidated financial statements in accordance with the standards established by the Canadian Institute of Chartered Accountants for a review of interim financial statements by an entity's auditors.
 
 
 
 
 
OLYMPUS PACIFIC MINERALS INC.
 
Consolidated Statement of Comprehensive Income/(Loss)
 
(Unaudited-stated in United States dollars)
  
For the three-month period ended September 30
    
For the nine month period ended September 30
  
   
2011
    
2010
    
2011
    
2010
  
                         
                         
Sales
   $ 12,465,251     $ 6,370,132     $ 19,214,929     $ 24,901,894  
                                 
Cost and expenses
                                
Cost of sales
     6,181,082       2,811,393       10,928,724       10,623,925  
Amortization
     2,416,746       767,357       4,159,182       4,236,040  
Royalty expense
     2,229,374       1,112,385       2,489,829       3,168,416  
Gain on gold loan principal repayment
     -       -       (931,959 )     -  
Exploration
     489,297       14,946       564,933       62,031  
Stock-based compensation (note 25)
     314,738       445,519       930,965       1,823,993  
Interest and accretion on term loans
     2,566,353       55,840       4,399,770       703,717  
Derivatives - fair value revaluation
     (5,714,696 )     8,531,364       (12,700,805 )     8,157,191  
Corporate and administrative expenses
     2,293,063       1,960,508       8,000,661       6,753,624  
                                 
      10,775,957       15,699,312       17,841,300       35,528,937  
Other (income)/expense
                                
Interest expense
     18,561       17,606       41,261       36,642  
Other income
     (3,300 )     -       (17,355 )     (10,000 )
(Gain)/loss on disposal of capital asset
     (153 )     1,002       26,599       5,827  
Foreign exchange gain
     (678,516 )     (224,235 )     (234,247 )     (660,743 )
      (663,408 )     (205,627 )     (183,742 )     (628,274 )
                                 
Income/(loss) for the period before income tax
     2,352,702       (9,123,553 )     1,557,371       (9,998,769 )
                                 
Income tax (recovery)/expense
                                
Corporate income tax
     1,933,527       (399,538 )     1,930,911       (717,257 )
                                 
Net income/(loss) and comprehensive income/(loss) for  the period
     419,175       (8,724,015 )     (373,540 )     (9,281,512 )
                                 
Attributable to:
                                
Equity owners
   $ (172,335 )   $ (9,204,416 )   $ (813,027 )   $ (10,908,433 )
Non-controlling interest
     591,510       480,401       439,487       1,626,921  
                                 
    $ 419,175     $ (8,724,015 )   $ (373,540 )   $ (9,281,512 )
                                 
Earnings/(loss) per share attributable to equity holders (note 8)
                                
Basic
   $ (0.000 )   $ (0.028 )   $ (0.002 )   $ (0.034 )
Diluted
   $ (0.004 )   $ (0.028 )   $ (0.006 )   $ (0.034 )
 
See accompanying notes to the Interim Consolidated Financial Statements
 
 
 
 

OLYMPUS PACIFIC MINERALS INC.
 
Consolidated Statement of Financial Position

As at
  
September 30
    
December 31
    
January 1
  
(Unaudited-stated in United States dollars)
  
2011
    
2010
    
2010
  
                   
ASSETS
                  
Non-current
                  
Advances on plant & equipment
   $ 282,264     $ 1,361,327     $ -  
Property, plant and equipment (note 10)
     38,265,602       30,649,677       9,430,738  
Deferred exploration expenditure (note 11)
     14,597,611       10,661,320       7,464,937  
Deferred development expenditure (note 12)
     23,733,004       21,064,312       17,584,116  
Mine properties (note 13)
     38,304,165       39,197,779       7,203,352  
      115,182,646       102,934,415       41,683,143  
Current
                        
Cash and cash equivalents (note 14)
     4,367,768       4,105,325       5,718,725  
Trade and other receivables (note 15)
     2,546,330       7,989,736       3,345,241  
Inventories (note 16)
     19,115,045       6,689,000       3,078,218  
Other financial assets (note 17)
     3,277,942       1,473,929       198,941  
      29,307,085       20,257,990       12,341,125  
                         
Total assets
     144,489,732       123,192,405       54,024,268  
                         
SHAREHOLDERS' EQUITY
                        
                         
Equity attributable to equity owners
                        
Capital and reserves (note 24)
     131,113,508       126,412,502       101,743,411  
Deficit
     (67,680,706 )     (66,867,679 )     (52,985,295 )
      63,432,802       59,544,823       48,758,116  
Non-controlling interest
     5,799,647       5,682,771       (444,033 )
Total shareholders' equity
     69,232,449       65,227,594       48,314,083  
                         
LIABILITIES
                        
                         
Non-current
                        
Provisions (note 18)
     1,051,083       1,119,332       770,010  
Derivative financial liabilities (note 19)
     17,614,289       18,200,216       -  
Interest-bearing loans and borrowings (note 20)
     6,934,858       8,979,280       -  
Convertible borrowings (note 21)
     21,484,931       6,436,133       -  
Deferred tax liabilities
     6,684,685       6,590,305       -  
      53,769,846       41,325,266       770,010  
Current
                        
Provisions (note 18)
     827,696       967,574       469,305  
Trade and other payables (note 22)
     11,487,330       8,033,182       4,299,869  
Other financial liabilities (note 23)
     -       818,946       171,001  
Interest-bearing loans and borrowings (note 20)
     8,018,720       6,429,600       -  
Convertible borrowings (note 21)
     1,153,691       390,243       -  
      21,487,437       16,639,545       4,940,175  
                         
Total liabilities
     75,257,283       57,964,811       5,710,185  
                         
Commitments, contingencies and contractual obligations (note 27)
                        
                         
Total liabilities and shareholders' equity
   $ 144,489,732     $ 123,192,405     $ 54,024,268  

See accompanying notes to the Interim Consolidated Financial Statements
 
 
 
 
OLYMPUS PACIFIC MINERALS INC.
 
Consolidated Statement of Changes in Equity
 
For the nine months ended September 30, 2011
(Unaudited-stated in United States dollars)
 
     
Issued
          
Other
Reserves
    
Non-Controlling
    
Total
  
 
Notes
  
Capital
    
Deficit
    
Note 24(d)
    
Interest
    
Equity
  
Balance at January 1, 2010
     $ 97,318,003     $ (52,985,295 )   $ 4,425,408     $ (444,033 )   $ 48,314,083  
                                           
Income/(loss) for the year
               (13,882,384 )             1,109,312       (12,773,072 )
Other comprehensive income/(loss)
                                          
Total comprehensive income/(loss)
       0       (13,882,384 )     0       1,109,312       (12,773,072 )
Issue of share capital
 24     32,585,853                               32,585,853  
Options granted and vested
                       2,323,275               2,323,275  
Options exercised
                       (654,896 )             (654,896 )
Warrants granted and vested
                       521,560               521,560  
Non-controlling interest on amalgamation
                               9,910,790       9,910,790  
Investment in subsidiary
                       (10,106,702 )     (4,893,298 )     (15,000,000 )
Balance at January 1, 2011
       129,903,856       (66,867,679 )     (3,491,355 )     5,682,771       65,227,593  
                                           
Income/(loss) for the period
               (813,027 )             439,487       (373,540 )
Other comprehensive income/(loss)
                                          
Total comprehensive income/(loss)
       0       (813,027 )     0       439,487       (373,540 )
Issue of share capital
 24     6,016,023                       750,000       6,766,023  
Options granted and vested
                       2,716,548               2,716,548  
Options exercised
                       (661 )             (661 )
Warrants granted and vested
                       896,485               896,485  
Investment in subsidiary
                       (4,927,389 )     (1,072,611 )     (6,000,000 )
Balance at September 30, 2011
     $ 135,919,879     $ (67,680,706 )   $ (4,806,372 )   $ 5,799,647     $ 69,232,449  
 
For the nine months ended September 30, 2010
(Unaudited-stated in United States dollars)
 
     
Issued
          
Other
Reserves
    
Non-Controlling
    
Total
  
 
Notes
  
Capital
    
Deficit
    
Note 24(d)
    
Interest
    
Equity
  
Balance at January 1, 2010
     $ 97,318,003     $ (52,985,295 )   $ 4,425,408     $ (444,033 )   $ 48,314,083  
                                           
Income/(loss) for the period
               (10,908,433 )             1,626,921       (9,281,512 )
Other comprehensive income/(loss)
                                          
Total comprehensive income/(loss)
       0       (10,908,433 )     0       1,626,921       (9,281,512 )
Issue of share capital
       15,053,302                               15,053,302  
Options granted and vested
                       2,270,694               2,270,694  
Options exercised
       348,149               (332,241 )             15,908  
Warrants granted and vested
                       521,560               521,560  
Investment in subsidiary
                       (5,053,351 )             (5,053,351 )
Non-controlling interest on amalgamation
                               9,910,790       9,910,790  
Investment in subsidiary
                                          
Balance at September 30, 2010
       112,719,454       (63,893,728 )     1,832,070       11,093,678       61,751,474  

See accompanying notes to the Interim Consolidated Financial Statements
 
 
 
 

OLYMPUS PACIFIC MINERALS INC.
 
Consolidated Statement of Deficit
 
   
For the three-month period ended September 30
    
For the nine month period ended September 30
  
(Unaudited-stated in United States dollars)
  
2011
    
2010
    
2011
    
2010
  
                         
Deficit
                        
Beginning of the period
   $ 67,508,371     $ 54,689,312     $ 66,867,679     $ 52,985,295  
Loss for the period attributable to equity owners
     172,335       9,204,416       813,027       10,908,433  
Deficit, end of the period
   $ 67,680,706     $ 63,893,728     $ 67,680,706     $ 63,893,728  
 
Consolidated Statement of Cash Flows
 
   
For the three month period ended September 30
    
For the nine month period ended September 30
  
   
2011
    
2010
    
2011
    
2010
  
                         
Operating activities :
                        
Loss for the period after tax
   $ 419,175     $ (8,724,015 )   $ (373,540 )   $ (9,281,512 )
Items not affecting cash
                                
Amortization
     2,416,746       767,357       4,159,182       4,236,040  
Loss on disposal of capital assets
     (153 )     1,002       26,599       5,827  
Gain on gold loan principal repayment
     -       -       (931,959 )     -  
Stock-based compensation expense
     314,738       445,519       930,965       1,823,993  
Deferred income tax
     424,979       (399,538 )     284,655       (585,642 )
Derivatives issuance costs
     -       -       673,456       -  
Derivatives revaluation
     (5,714,696 )     8,531,364       (12,700,805 )     8,157,191  
Interest and accretion of term loans
     2,062,920       145,088       2,613,698       413,139  
Unrealized foreign exchange
     (796,782 )     144,977       (238,339 )     39,265  
ARO adjustment (net)
     20,789       29,080       59,720       50,034  
Changes in non-cash working capital balances
                                
Trade and other receivables and other financial assets
     (1,588,411 )     1,446,332       3,427,687       (3,118,594 )
Trade and other payables
     5,619,888       (3,544,081 )     3,266,266       1,037,877  
Inventory
     (3,127,615 )     (1,499,256 )     (8,988,624 )     (2,250,462 )
Cash provided by/(used in) operating activities
     51,578       (2,656,171 )     (7,791,039 )     527,156  
                                 
Investing activities :
                                
Cash acquired in amalgamation (note 9)
     -       -       -       45,643  
Deferred exploration and development costs
     (4,486,532 )     (3,112,365 )     (10,837,268 )     (7,318,290 )
Investment in subsidiary
     -       (7,500,000 )     (6,000,000 )     (7,500,000 )
Acquisition of property, plant and equipment
     (1,948,228 )     (5,286,001 )     (8,819,404 )     (15,660,278 )
Cash used in investing activities
     (6,434,760 )     (15,898,366 )     (25,656,672 )     (30,432,925 )
                                 
Financing activities :
                                
Capital lease payments
     (646,042 )     (342,206 )     (855,948 )     (409,616 )
Convertible borrowings issued
     -       -       28,732,255       11,481,794  
Gold loan notes issued
     -       -       -       20,565,905  
Share issue cost
     -       -       -       (20,000 )
Shares issued, net of costs
     -       -       5,498,220       329,720  
Capital contributions from JV partner
     -       -       750,000       -  
Cash provided by financing activities
     (646,042 )     (342,206 )     34,124,527       31,947,803  
                                 
Increase/(decrease) in cash during the period
     (7,029,224 )     (18,896,743 )     676,816       2,042,034  
                                 
Cash - beginning of the period
     11,494,263       26,596,707       4,105,325       5,718,725  
                                 
Effect of foreign exchange rate changes on cash
     (97,271 )     (53,315 )     (414,373 )     (114,110 )
                                 
Cash - end of the period
   $ 4,367,768     $ 7,646,649     $ 4,367,768       7,646,649  
                                 
Supplemental information:
                                
Interest paid
   $ 781,920     $ -     $ 1,786,073     $ -  
Income taxes paid
   $ -     $ -     $ 1,646,076     $ 489,956  

See accompanying notes to the Interim Consolidated Financial Statements