Financial Performance - For the six months ended September 30, 2022, the company reported a loss before tax of HKD 7,942,000, an improvement from a loss of HKD 10,858,000 in the same period last year, representing a decrease of approximately 26.5%[6] - The total comprehensive loss for the period was HKD 622,699,000, significantly higher than HKD 68,793,000 in the previous year, indicating an increase of approximately 804.5%[8] - The basic and diluted loss per share for the period was HKD 0.02, compared to HKD 0.05 in the same period last year, indicating an improvement of 60%[8] - The company recorded a basic loss attributable to owners of approximately HKD 4,379,000 for the six months ended September 30, 2022, compared to a loss of HKD 9,726,000 for the same period in 2021, representing a 55% improvement in losses year-over-year[50] - The group reported a total loss before tax of HKD (7,942) thousand for the six months ended September 30, 2022, compared to a loss of HKD (10,858) thousand in the same period of 2021[25] Income and Expenses - Other income increased to HKD 800,000 from HKD 428,000 year-on-year, reflecting a growth of approximately 86.9%[6] - The company reported a significant foreign exchange loss of HKD 614,757,000 during the period, compared to a loss of HKD 57,935,000 in the previous year, reflecting a substantial increase in foreign exchange impact[6] - The net cash used in operating activities for the six months ended September 30, 2022, was HKD (18,134) thousand, compared to HKD (15,210) thousand for the same period in 2021[17] - The net cash used in investing activities for the six months ended September 30, 2022, was HKD (3,103) thousand, a significant decrease from HKD 26,802 thousand in 2021[17] - The net cash used in financing activities for the six months ended September 30, 2022, was HKD (558) thousand, compared to HKD 1,795 thousand in the previous year[17] Assets and Liabilities - The company's non-current assets decreased to HKD 2,649,348,000 from HKD 3,263,383,000, a decline of about 18.8%[11] - The total equity attributable to the owners of the company decreased to HKD 2,249,238,000 from HKD 2,739,897,000, representing a decrease of approximately 17.9%[13] - The company’s total liabilities decreased to HKD 5,157,000 from HKD 7,841,000, a reduction of approximately 34.1%[11] - The company’s cash and cash equivalents as of September 30, 2022, were HKD 150,303,000, down from HKD 163,168,000 at the end of the previous reporting period, a decrease of approximately 7.9%[11] - The total cash and cash equivalents at the end of the period was HKD 150,303 thousand, down from HKD 176,702 thousand at the end of the same period in 2021[17] Project Developments - The Evander project has an estimated mineral resource of 19.64 million tons containing 4.29 million ounces of gold, with an average grade of 6.80 grams per ton[58] - The company invested approximately ZAR 2.02 million in the Evander project during the review period[58] - The Jeanette project has an estimated total gold extraction of 2.89 million ounces, with an initial capital cost of $523.5 million[74] - The project has a mine life of 22 years, with a payback period of 8.7 years[74] - The company focused on the Jeanette project due to its lower capital costs and quicker delivery time for initial production compared to the Evander project[84] Corporate Actions - The company did not recommend the payment of an interim dividend for the six months ended September 30, 2022, consistent with the previous year[41] - The company decided not to proceed with the proposed acquisition and terminated the agreement, resulting in the return of HKD 30,000,000 as a deposit[80] - The company terminated the sale agreement for its 100% interest in HIL due to the potential buyer's inability to provide sufficient funding[93] - The remaining deposit of HKD 30,000,000 is to be returned by the seller by December 31, 2022[80] Governance and Compliance - The company has complied with the corporate governance code during the six months ending September 30, 2022, with minor deviations noted[108] - The audit committee, consisting of three independent non-executive directors, has reviewed the unaudited consolidated financial statements for the six months ending September 30, 2022[112] - There were no purchases, sales, or redemptions of the company's shares or other listed securities during the reporting period[113] Employee and Shareholder Information - As of September 30, 2022, the total number of employees was 24, consistent with the previous quarter[94] - Goldborn Holdings Limited holds 2,001,362,075 shares, representing 11.03% of the total issued shares[102] - Mandra Materials Limited owns 777,434,722 shares, accounting for 4.28% of the total issued shares[102] - The company has no short positions in its shares or related securities as of September 30, 2022[107] - The new share option plan allows for the issuance of up to 1,815,147,198 shares, representing 10% of the issued share capital as of August 28, 2020[95] - The company has not granted or exercised any options under the new share option plan as of September 30, 2022[95]

Company Transition and Projects - The company transitioned from a gold developer to a gold producer during the reporting period, driven by the development of the Jeanette project[16] - The company is focusing on the Jeanette project while reducing further work and funding on the Evander project due to ongoing travel restrictions[17] - The company continues to evaluate potential gold projects to accelerate its transition to a gold producer, although reviewed assets have not met investment criteria[20] - The company plans to identify short-term gold mining assets for potential acquisition[37] - The company is focused on advancing the engineering, procurement, and construction contracts for the Jeanette project with MCC[37] - The Jeanette project is planned to be executed in phases, with the first phase involving the completion and commissioning of existing infrastructure, targeting a production rate of 30,833 tons per month and an ore grade of 11.92 grams per ton[43] - The second phase of the Jeanette project will involve the development of two new shafts, increasing the production rate to 69,167 tons per month and an ore grade of 11.06 grams per ton[44] - The Evander project has a proven and probable resource of 19.85 million tons with an average gold grade of 8.47 grams per ton, containing 5.41 million ounces of gold[57] - The company has established a joint venture with the Pakistan Border Engineering Organization for the Tanjeel H4 deposit but has decided to focus resources on the Jeanette project due to political delays and COVID-19 impacts[79] Financial Performance - The average gold price for the year was $1,799 per ounce, an increase of approximately 2% compared to 2020[20] - South African gold producers experienced an 18% increase in total revenue to 102 billion Rand, supported by a 10% growth in gold production to 105 tons[20] - The company recorded a basic profit attributable to shareholders of approximately HKD 45,147,000 for the fiscal year ending March 31, 2022, compared to a loss of HKD 526,232,000 for the previous year[30] - The total comprehensive income for the year was approximately HKD 64,655,000, down from HKD 633,122,000 in the previous year, primarily due to foreign exchange differences[32] - The company's total assets as of March 31, 2022, were approximately HKD 3,440,722,000, an increase from HKD 3,311,838,000 the previous year[33] - The company has no outstanding bank borrowings as of March 31, 2022, maintaining a capital debt ratio of zero[33] - The company has not recommended any dividends for the fiscal year ending March 31, 2022[31] - The company remains optimistic about gold prices and the mining industry outlook, driven by factors such as central bank net purchases and strong demand from emerging market jewelry consumers[22] Project Costs and Returns - The initial capital cost for the first phase is estimated at $523.5 million, significantly reduced from the previous estimate of $723.8 million[46] - The total capital cost for the project is estimated at $646.6 million, with a cash operating cost of $471 per ounce and a profit margin of 46.2%[47] - The internal rate of return for the project is projected at 14.1%, with a net present value of $509.9 million at a 5% discount rate[47] - The Evander project's initial capital cost is estimated at $579.3 million, with a total capital cost of $714.7 million and a cash operating cost of $486 per ounce[58] - The internal rate of return for the Evander project is projected at 17.6%, with a net present value of $724.8 million at a 5% discount rate[58] Environmental, Social, and Governance (ESG) Initiatives - The company identified significant environmental, social, and governance (ESG) issues through a materiality assessment, focusing on greenhouse gas emissions and climate change as very important topics[146] - The company reported a direct greenhouse gas emission increase from 7,212 liters in FY2021 to 9,515 liters in FY2022, representing a 32% increase[157] - Indirect greenhouse gas emissions decreased significantly from 95,005 kWh in FY2021 to 24,816 kWh in FY2022, indicating a reduction of approximately 74%[157] - The company has established environmental goals to reduce emissions and resource consumption in daily operations, which were reviewed and discussed by the board[147] - The company adheres to local environmental regulations and has obtained waste management permits for its projects, ensuring compliance with environmental laws[152] - The company has not faced any legal actions for environmental violations during the reporting period, demonstrating compliance with environmental regulations[152] - The board regularly reviews and adjusts strategies to ensure the effectiveness of ESG initiatives and the achievement of environmental goals[147] - The company emphasizes the importance of stakeholder feedback in shaping its ESG strategies and practices[146] - The company has adopted various environmental management measures to mitigate ecological impacts, including comprehensive environmental impact assessments for mining projects[168] - The company recognizes potential climate risks, such as extreme weather events, which could affect mining operations and has developed emergency policies to address these risks[171] Employee and Labor Practices - The company adheres to local labor laws and maintains high employment standards, ensuring fair recruitment practices regardless of personal characteristics[172] - The company provides competitive compensation and fair promotion opportunities based on employee performance evaluations[175] - Total number of employees during the reporting period was 24, with 11 in South Africa and 13 in Hong Kong[181] - Employee turnover rate for the fiscal year 2022 was 0% across all demographics, including gender and age groups[183] - 25% of executive directors and 15% of general employees participated in training programs during the fiscal year 2022[188] - The company has implemented a comprehensive health and safety management policy, ensuring compliance with local laws and providing necessary protective equipment[184] - The company has not employed any child or forced labor during the reporting period and has not faced any legal actions related to labor violations[190] - The company offers a competitive compensation package and attractive benefits, including paid leave and insurance[181] - The company is committed to diversity and equal opportunity, ensuring no discrimination based on race, religion, gender, or disability[178] Community Engagement and Support - Community support initiatives were implemented during lockdowns, assisting local residents with food production and small business development[17] - The company believes in enhancing community quality of life and has implemented educational development programs to positively impact surrounding communities[200] Corporate Governance - The company has established high ethical standards, prohibiting employees from soliciting or accepting bribes or personal benefits[196] - A whistleblowing policy is in place to encourage employees to report any misconduct, with clear guidelines for handling reports confidentially[197] - Employees are trained on ethical business conduct, covering topics such as integrity, confidentiality, and conflict of interest[199] - The company has received annual confirmations of independence from all independent non-executive directors, affirming their independence[135] - The company appointed Guotai Junan (Hong Kong) CPA Limited as the new auditor effective February 23, 2022, following the resignation of Deloitte[138]

Financial Performance - For the six months ended September 30, 2021, the company reported a loss before tax of HKD 10,858,000, a decrease of 11.1% compared to a loss of HKD 12,267,000 in the same period of 2020[5]. - Total comprehensive loss for the period was HKD 68,793,000, compared to a comprehensive income of HKD 184,867,000 in the prior year, reflecting a significant decline[7]. - Other income decreased to HKD 428,000 from HKD 1,249,000, indicating a drop of 65.7% year-on-year[5]. - Administrative and operating expenses were reduced to HKD 10,364,000, down 29.5% from HKD 14,690,000 in the previous year[5]. - The company reported a basic and diluted loss per share of HKD 0.05, consistent with the previous year's loss per share of HKD 0.06[7]. - The total equity attributable to owners of the company decreased to HKD 2,588,474,000 from HKD 2,643,888,000, reflecting a decline of 2.1%[12]. - The company reported a loss attributable to shareholders of approximately HKD 9,726,000 for the six months ended September 30, 2021, compared to a loss of HKD 10,913,000 for the same period in 2020, representing a decrease in loss of about 10.9%[54]. Cash Flow and Assets - Cash and cash equivalents increased to HKD 176,702,000 from HKD 163,140,000, showing a growth of 8.5%[10]. - The net cash used in operating activities for the six months ended September 30, 2021, was HKD (15,210) thousand, compared to HKD (13,931) thousand for the same period in 2020, indicating a decline in operational cash flow[17]. - The net cash generated from investing activities was HKD 26,802 thousand, a significant increase from HKD (1,336) thousand in the previous year, reflecting improved investment performance[17]. - The net cash generated from financing activities was HKD 1,795 thousand, compared to HKD (685) thousand in the prior year, showing a positive shift in financing cash flow[17]. - The total cash and cash equivalents at the end of the period increased to HKD 176,702 thousand from HKD 183,180 thousand, despite a net increase of HKD 13,387 thousand during the period[17]. - The company's non-current assets totaled HKD 3,056,636,000 as of September 30, 2021, a decrease from HKD 3,141,727,000 as of March 31, 2021[10]. Taxation - The company has not recognized any income tax expense for the period, maintaining a consistent tax position[5]. - The group did not make any provisions for Hong Kong profits tax or South African income tax during both periods due to the absence of taxable profits[37]. Strategic Initiatives - The company continues to explore opportunities for market expansion and new product development as part of its strategic initiatives[5]. - The company focused on advancing the Jeanette project and community development activities during the review period, with no mining or production activities conducted[60]. - The company identified potential short-term gold mining assets for acquisition during the review period[60]. - The company has decided to focus resources on the Jeanette project development, halting progress on the Tanjeel H4 deposit in Pakistan due to unclear pre-qualification results and the impact of COVID-19[88]. Project Developments - The Evander project has an estimated total capital cost of USD 714.7 million, with a projected internal rate of return of 17.6%[65]. - The Evander project is expected to produce 4,113,000 ounces of gold over its lifespan, with an average annual production of 309,000 ounces[65]. - The Jeanette project feasibility study estimates a preliminary capital cost of 523.5 million USD (2019) and a total capital cost of 646.6 million USD over a 22-year mine life[79]. - The Jeanette project is expected to produce 2.89 million ounces of gold over its lifespan, with a cash operating cost of 471 USD per ounce and a profit margin of 46.2%[79]. - The internal rate of return for the Jeanette project is projected at 14.1%, with a payback period of 8.7 years[79]. - The phased approach for the Jeanette project reduces initial capital cost estimates from 723.8 million USD to 523.5 million USD[76]. - The feasibility study results for the Jeanette project have been published, leading the company to prioritize the EPC contract for Jeanette over the Evander project[89]. - The EPC contract for the Jeanette project was awarded to MCC with a contract value of $521,546,000, which will be split into two contracts for engineering and construction[95]. Shareholder Information - As of September 30, 2021, Christiaan Rudolph de Wet de Bruin holds 244,650,717 shares, representing 1.30% of the company's issued share capital[103]. - Goldborn Holdings Limited is the largest shareholder with 2,001,362,075 shares, accounting for 11.03% of the total equity[111]. - Gold Commercial Services Limited (GoldCom) holds 1,006,304,384 shares, which is 5.54% of the company's equity[111]. - Mandra Materials Limited and Mandra Esop Limited hold 777,434,722 shares (4.28%) and 16,238,369 shares (0.09%) respectively[111]. - The company has not reported any short positions in its shares or related securities as of September 30, 2021[113]. Corporate Governance - The company has complied with the corporate governance code as of September 30, 2021, except for the non-executive directors' appointment terms[114]. - The audit committee, consisting of three independent non-executive directors, has reviewed the unaudited consolidated financial statements for the six months ending September 30, 2021[118]. - There were no purchases, sales, or redemptions of the company's listed securities during the reporting period[119].

Gold Price and Market Trends - Gold price increased by approximately 25% in USD terms during 2020, with the South African Rand price per kilogram rising by about 23% compared to the previous year[12] - The global economic recovery is uneven, with COVID-19 and geopolitical tensions expected to support stronger gold prices[18] Jeanette Project Development - The company's Jeanette project is progressing with a phased approach to reduce capital requirements and shorten construction time, with significant progress made in basic design negotiations by Q3 2020[11] - The Jeanette project has a total estimated mineral reserve of 7.12 million ounces of gold in the Basal Reef, as per the pre-feasibility study completed in February 2016[36] - The first phase of the Jeanette project is estimated to have an initial construction capital cost of US$523.5 million, with a total capital cost of US$646.6 million over the project life[42] - The Jeanette project's first phase is expected to produce 2.89 million ounces of gold over a 22-year mine life, with a post-tax NPV of US$509.9 million at a 5% discount rate and an IRR of 14.1%[42] - The company's capital efficiency for the Jeanette project is estimated at US$4,017 per ounce, with a cash operating cost of US$471 per ounce and a total sustainable cost of US$666 per ounce[42] - Jeanette project expenses for the fiscal year ending March 31, 2021: consultants and service providers (1.53 million ZAR), staff (4.04 million ZAR), and indirect expenses (1.10 million ZAR)[49] - The Jeanette project's EPC contract with MCC has a bid amount of $521.546 million, with potential adjustments due to scope changes during basic design[77] - The company expects to finalize the total price proposal for the Jeanette project by December 2021, pending shareholder approval[78] Evander Project Development - Evander project's Kimberley Reef area has proven and controlled resources of 19.85 million tons with an average gold grade of 8.47 grams per ton, containing 5.41 million ounces of gold[52] - Evander project's profitability study estimates total gold production of 4,113,000 ounces over the project life, with an annual production of 309,000 ounces at a grade of 6.51 grams per ton[53] - Initial construction capital cost for Evander project estimated at 579.3 million USD, with total capital cost over the project life at 714.7 million USD[53] - Evander project's after-tax net present value at a 5% discount rate is 724.8 million USD, with an after-tax internal rate of return of 17.6%[53] - Evander project's cash operating cost is 486 USD per ounce, with a sustainable total cost of 583 USD per ounce and a total cost of 724 USD per ounce[53] - Evander project's peak annual production estimated at 338,000 ounces of gold with a recovery grade of 7.41 grams per ton and a cash cost of 402 USD per ounce[61] - Evander project's payback period is 3.6 years from the date of first production[53] - Evander project's proven mineral resource is 0.11 million tons with a grade of 10.81 g/t, containing 1.09 tons of gold (0.04 million ounces)[70] - Evander project's controlled mineral resource is 19.75 million tons with a grade of 8.47 g/t, containing 167.18 tons of gold (5.37 million ounces)[70] - Total expenditure for the Evander project for the year ended March 31, 2021, was 5.00 million ZAR, including 3.95 million ZAR for staff and 1.05 million ZAR for indirect expenses[68] - Environmental impact assessments for the Evander project require revisions, with production phases expected to begin approximately 6 years after commencement, not impacting the critical path of project construction[85] - The company holds environmental permits for the dewatering and construction phases of the Evander project, along with a water use permit for handling excess mine water[85] - Evander project's remaining work is expected to take 12 to 18 months from the decision to proceed, with key tasks including finalizing binding terms, initiating financing discussions, and awarding contracts[82] Financial Performance and Capital Structure - The company recorded a basic loss attributable to owners of approximately HK$526,232,000 or a basic loss per share of HK$0.0292 for the fiscal year ended March 31, 2021, compared to a basic loss of HK$41,359,000 or HK$0.0023 per share in the previous fiscal year[24] - The company had no revenue for the fiscal year ended March 31, 2021, and the net loss attributable to equity holders was approximately HK$526,232,000, compared to HK$41,359,000 in the previous fiscal year[26] - The company's cash and cash equivalents balance was approximately HK$163,140,000 as of March 31, 2021, down from HK$199,594,000 in the previous year[27] - The company has no outstanding bank borrowings or bank financing as of March 31, 2021, and a capital gearing ratio of zero[27] - As of March 31, 2021, the company had no distributable reserves for cash or in-kind distributions to shareholders, with a share premium account balance of approximately HKD 5.3 billion[94] - The company reported no significant changes in its capital structure during the year and did not purchase, sell, or redeem any listed securities[89] COVID-19 Measures and Operational Adjustments - The company implemented various COVID-19 prevention measures, including social distancing, mandatory temperature checks, and reduced non-essential travel, to maintain operations[21] - The company closed its Johannesburg office in September 2021 and established a smaller satellite office in Pretoria for physical meetings[21] - The company is transitioning from a gold project developer to a gold producer, focusing on the Jeanette project while scaling back work on the Evander project due to international travel restrictions[11] - The company reviewed several gold projects to potentially accelerate its transition to a gold producer but found that the assets did not meet its investment criteria[12] Environmental, Social, and Governance (ESG) Initiatives - The company's environmental, social, and governance (ESG) report covers the period from April 1, 2020, to March 31, 2021, and focuses on gold mining operations in South Africa[128] - The company has implemented strategies to reduce greenhouse gas emissions, including minimizing business travel, saving energy, and conserving water[137] - The company's mining projects are in the pre-production stage, resulting in minimal environmental impact and no generation of hazardous waste during the reporting period[137] - The Jeanette project will have net water consumption due to minimal underground fissure water, while the Evander project will have net water discharge due to existing underground fissure water sources[140] - The company has established a health and safety management system called "TanGold Safety Road" to ensure a safe working environment for all employees[150] - No work-related deaths or injuries were reported during the reporting period, with a 0% work-related death rate and no lost workdays due to injuries[152] - The company provided on-the-job training, safety, and first aid courses to employees during the reporting period to promote career development[153] - The company implemented specific educational development programs in communities near its projects as part of its social and labor plan[154] - The company strictly prohibits child labor, forced labor, and any form of coercion or fraud in employment, with no reported cases of violations during the reporting period[156][157] - The company has a supplier selection and evaluation mechanism to ensure compliance with environmental and corporate social responsibility measures, including monitoring BEE scores and carbon emissions of potential suppliers[158] - The company maintains high ethical standards, with strict anti-corruption, anti-money laundering, and whistleblowing policies in place, and no reported cases of violations during the reporting period[162][163] - The company strengthened its social and labor plan during the COVID-19 pandemic, training over 1,100 households in food production to address unemployment and hunger in the Jeanette project area[165] - The company provided training and ongoing support to vegetable producers, including materials for building greenhouses and irrigation systems[166] - The company regularly reviews and monitors its social and labor plan through meetings with local municipal authorities and the Department of Mineral Resources and Energy[166] Corporate Governance and Board Activities - The Board of Directors consists of six members, including three executive directors and three independent non-executive directors[189] - The Board held six regular meetings and two shareholder meetings during the fiscal year ending March 31, 2021[189] - All directors attended 100% of the regular Board meetings, except for one executive director who attended 1 out of 2 other Board meetings[190] - The Audit Committee, composed of three independent non-executive directors, held seven meetings to review the Group's financial performance, internal controls, and risk management systems[199] - The Audit Committee reviewed the annual financial statements for the year ending March 31, 2021, and the interim financial statements for the six months ending September 30, 2020, and found them to be in compliance with applicable accounting standards[199] - The Board has established four committees: Audit Committee, Nomination Committee, Remuneration Committee, and Technical Safety and Environment Committee, each with written terms of reference[196] - The Board is responsible for approving major acquisitions and disposals, annual and interim results, major capital transactions, and changes in share capital[185] - The Board focuses on overall corporate strategy and policy, particularly the company's financial performance[185] - The Board has delegated authority to management for day-to-day operations, but major decisions require prior Board approval[191] - The company has arranged appropriate liability insurance to indemnify directors for liabilities arising from corporate governance activities[195] Shareholder and Share Option Information - The company's shareholding structure shows that Christiaan Rudolph de Wet de Bruin holds 244,650,717 shares, representing 1.30% of the company's issued share capital[109] - The company's 2010 Share Option Plan allows for the issuance of up to 161,924,000 shares, which is 10% of the total issued shares as of January 4, 2010[115] - The updated 2010 Share Option Plan, approved on November 21, 2014, allows for the issuance of up to 1,217,991,569 shares, representing 10% of the issued share capital as of that date[115] - The new Share Option Plan, approved on August 28, 2020, allows for the issuance of up to 1,815,147,198 shares, which is 10% of the issued share capital as of that date[115] - As of March 31, 2021, no share options have been granted under the new Share Option Plan[115] - Total share options outstanding as of March 31, 2021, amounted to 174,933,901, all of which were forfeited during the year[117] - Goldborn Holdings Limited holds 11.03% of the company's issued shares, totaling 2,001,362,075 shares[119] - Mandra Materials Limited holds 4.28% of the company's issued shares, totaling 777,434,722 shares[119] - Gold Commercial Services Limited holds 6.21% of the company's issued shares, totaling 1,126,724,384 shares[119] - The company maintained a public float of at least 25% of its issued shares as required by listing rules[124] Operational and Production Status - The company did not conduct any mining or production activities as of March 31, 2021[32] - No mining or production activities were conducted during the reporting period due to the pre-construction phase of the Evander and Jeanette projects in South Africa[128] - The company is focusing on advancing the Jeanette project, including engineering, procurement, and construction contracts with MCC, and identifying short-term gold mining assets for potential acquisition[31] - The company has not yet commenced any mining or production activities, so product responsibility policies are not applicable at this stage[159] Employee and Community Engagement - The company employed approximately 30 staff in Hong Kong and South Africa as of March 31, 2021, with compensation based on performance, experience, and market conditions[95] - The company has a total of 30 employees, with 16 males and 14 females, distributed between Hong Kong (12 employees) and South Africa (18 employees)[147] - The company engages with stakeholders through various channels, including company websites, shareholder meetings, and community communication meetings[134] - The company provided on-the-job training, safety, and first aid courses to employees during the reporting period to promote career development[153] - The company implemented specific educational development programs in communities near its projects as part of its social and labor plan[154] - The company strengthened its social and labor plan during the COVID-19 pandemic, training over 1,100 households in food production to address unemployment and hunger in the Jeanette project area[165] - The company provided training and ongoing support to vegetable producers, including materials for building greenhouses and irrigation systems[166] - The company regularly reviews and monitors its social and labor plan through meetings with local municipal authorities and the Department of Mineral Resources and Energy[166] Key Performance Indicators (KPIs) and Reporting - The company has disclosed key performance indicators related to emissions, energy consumption, and water usage, though specific data is not applicable at this stage[169] - Total number of employees categorized by gender, employment type, age group, and region[172] - Employee turnover rate categorized by gender, age group, and region[172] - Number and rate of work-related fatalities[172] - Number of lost workdays due to work injuries[172] - Percentage of trained employees categorized by gender and employee category (e.g., senior management, middle management)[172] - Number of suppliers categorized by region[172] - Number of product recalls due to safety and health reasons as a percentage of total products sold or shipped[172] - Number of complaints received regarding products and services and the response methods[172] - Number of concluded corruption cases against the company or its employees during the reporting period[175] - Resources allocated (e.g., money or time) in focused areas such as education, environmental issues, labor needs, health, culture, and sports[175] Audit and Financial Reporting - Deloitte Touche Tohmatsu has audited the financial statements for the year ended March 31, 2021, and is eligible for re-appointment[126] - The Audit Committee reviewed the annual financial statements for the year ending March 31, 2021, and the interim financial statements for the six months ending September 30, 2020, and found them to be in compliance with applicable accounting standards[199] Other Corporate Activities - The company terminated the proposed acquisition of the Pakistan target company, with a refund of HKD 30 million received and an additional HKD 30 million expected by December 31, 2021[73] - The joint venture with Pakistan Frontier Works Organization for the Tanjeel H4 deposit has not progressed due to political delays and COVID-19, with the company retrieving a $15.4 million deposit[74] - The sale of HIL, which holds coal mining rights, is ongoing, with the original potential buyer facing financial difficulties and the company seeking new buyers[86] - The company's independent non-executive directors have confirmed their independence from the company[125]

Financial Performance - For the six months ended September 30, 2020, the company reported a loss before tax of HKD 12,267,000, an improvement from a loss of HKD 15,109,000 in the same period of 2019, representing a 19.1% reduction in losses[7] - Total comprehensive income for the period was HKD 184,867,000, compared to a loss of HKD 40,764,000 in 2019, indicating a significant turnaround[7] - The company's share of losses attributable to owners was HKD 10,913,000, down from HKD 13,410,000 in the previous year, reflecting a 18.6% decrease[11] - The company recorded a total comprehensive loss of (12,267) thousand HKD for the six months ended September 30, 2020, compared to a loss of (15,109) thousand HKD for the same period in 2019, indicating a reduction in losses[28] - The company reported a basic loss attributable to owners of approximately HKD 10,913,000 for the six months ended September 30, 2020, compared to a loss of HKD 13,410,000 for the same period in 2019, representing a decrease of 11.1%[62] - The basic and diluted loss per share for the six months ended September 30, 2020, was HKD 0.06, compared to HKD 0.07 for the same period in 2019[58] Assets and Liabilities - The total assets less current liabilities amounted to HKD 3,515,427,000 as of September 30, 2020, compared to HKD 3,330,506,000 as of March 31, 2020, showing an increase of 5.5%[15] - Non-current assets, primarily mining assets, increased to HKD 3,212,236,000 from HKD 3,015,780,000, representing a growth of 6.5%[15] - The company's equity attributable to owners increased to HKD 2,815,120,000 from HKD 2,671,980,000, reflecting a growth of 5.4%[19] - The company had no outstanding bank borrowings as of September 30, 2020, maintaining a capital debt ratio of zero[64] Cash Flow - The company reported cash and cash equivalents of HKD 183,180,000, a decrease from HKD 199,594,000 as of March 31, 2020, indicating a decline of 8.2%[19] - The net cash used in operating activities for the six months ended September 30, 2020, was (13,931) thousand HKD, an improvement from (28,483) thousand HKD in the same period of 2019[31] - The company experienced a net cash outflow from investing activities of (1,336) thousand HKD for the six months ended September 30, 2020, compared to (4,400) thousand HKD in the same period of 2019[31] - The company’s cash and cash equivalents decreased by a net amount of (15,952) thousand HKD during the reporting period[31] Revenue and Expenses - The company reported a total revenue of 5,307,443 thousand HKD for the six months ended September 30, 2020, compared to 3,322,883 thousand HKD for the same period in 2019, representing a year-over-year increase of approximately 60%[27] - The total expenses for the period were 184,867 thousand HKD, which included unallocated corporate expenses of (7,647) thousand HKD[42] - Administrative and operating expenses decreased slightly to HKD 14,690,000 from HKD 14,820,000, a reduction of 0.9%[7] - Employee costs, including directors' remuneration, amounted to HKD 6,960,000 for the six months ended September 30, 2020, down from HKD 8,005,000 in the same period of 2019[53] Projects and Operations - The Evander project has an estimated total capital cost of $714.7 million and a cash operating cost of $486 per ounce[74] - The Evander project's after-tax internal rate of return is 17.6% with a net present value of $724.8 million at a 5% discount rate[74] - The Jeanette project has an estimated initial capital cost of $523.5 million and a total capital cost of $646.6 million[87] - The Jeanette project is projected to produce 2.89 million ounces of gold over its lifespan with a profit margin of 46.2%[87] - The Evander project has a mining period of 20 years with a payback period of 3.6 years[74] - The Jeanette project has a mining period of 22 years with a payback period of 8.7 years[87] - The Evander project has a total gold production of 4,113,000 ounces with an average grade of 6.51 grams per ton[74] - The Jeanette project aims for a production rate of 370,000 tons per year in its first phase[82] Corporate Governance and Management - The company has complied with the corporate governance code except for a deviation regarding the appointment of non-executive directors[135] - The audit committee, consisting of three independent non-executive directors, reviewed the unaudited consolidated financial statements for the six months ending September 30, 2020[139] - Jacques du Plessis and Peter Warring were appointed as co-interim CEOs of TGL effective December 7 and December 8, 2020, respectively[142] - Jacques du Plessis has nearly 41 years of experience in mining and project execution, having joined the group in 2007[145] - Peter Warring has over 30 years of experience in corporate and mining law and public affairs, having joined TGL in 2007[146] Shareholder Information - The new share option plan allows for the issuance of up to 1,815,147,198 shares, representing 10% of the issued share capital as of August 28, 2020[115] - As of September 30, 2020, Christiaan Rudolph de Wet de Bruin held 244,650,717 shares, representing 1.30% of the issued share capital[125] - Goldborn Holdings Limited owns 2,001,362,075 shares, accounting for 11.03% of the issued share capital as of September 30, 2020[129] - The total number of options granted under the 2010 share option plan was 174,933,901 as of September 30, 2020[123] - The company issued 1,130,141,116 shares to GoldCom to acquire 21,174,316 shares of TGL from South African residents[130] - As of September 30, 2020, there were no short positions in the company's shares or related shares[134] Community and Social Responsibility - The company is focused on social and labor initiatives in the community near the Jeanette project, particularly in response to the COVID-19 pandemic[109] Other Information - The company did not incur any income tax expenses during the period, consistent with the previous year[7] - The company did not declare an interim dividend for the six months ended September 30, 2020, consistent with the previous year[55] - The company did not incur any tax provisions due to the absence of taxable profits in both Hong Kong and South Africa during the reporting periods[49] - The company has adopted a written guideline for securities trading by employees, which is as stringent as the standard code[136] - The company is not aware of any violations of the written guidelines by employees[137]

Project Development and Feasibility - The company completed and announced the feasibility study results for the Jeanette project, adopting a phased approach to reduce required funding and construction time for initial production [28]. - The company decided to suspend further work on the Evander project construction contract to review the feasibility results of the Jeanette project [28]. - The company is focusing on the feasibility study of the Jeanette project and related community social and labor plans, as well as advancing engineering, procurement, and construction contracts with MCC [49]. - The initial capital cost estimate for the Jeanette project has been significantly reduced from USD 723.8 million to USD 523.5 million due to a phased execution approach [60]. - The time to first gold production for the Jeanette project has been shortened from 4.5 years to 3.6 years [60]. - The Jeanette project has an estimated total resource of 7.12 million ounces of gold, based on the preliminary feasibility study completed in February 2016 [54]. - The total capital cost for the Jeanette project is $646.6 million [61]. - The after-tax net present value (NPV) at a 5% discount rate for the Jeanette project is $509.9 million [61]. - The after-tax internal rate of return (IRR) for the Jeanette project is 14.1% [61]. - The Evander project has extracted 4.113 million ounces of gold during its lifespan [69]. - The average annual gold production for the Evander project is estimated at 309,000 ounces [69]. - The estimated initial capital cost for the Evander project is $579.3 million [69]. - The after-tax net present value (NPV) at a 5% discount rate for the Evander project is $724.8 million [69]. - The after-tax internal rate of return (IRR) for the Evander project is 17.6% [69]. Financial Performance - For the fiscal year ending March 31, 2020, the company reported a net loss attributable to equity holders of approximately HKD 41,359,000, compared to a net loss of approximately HKD 33,871,000 in the previous fiscal year [43]. - Total comprehensive expenses for the year were approximately HKD 771,082,000, down from HKD 817,302,000 in the previous year, primarily due to foreign exchange differences from South African operations [43]. - As of March 31, 2020, the company's total assets were approximately HKD 3,341,526,000, down from HKD 4,167,185,000 in the previous year, with a capital debt ratio of zero [44]. - The company's cash and cash equivalents balance as of March 31, 2020, was approximately HKD 199,594,000, compared to HKD 239,062,000 in the previous year [44]. - The company did not conduct any mining or production activities during the review period [50]. - The company does not recommend any dividend payment for the fiscal year ending March 31, 2020 [104]. - As of March 31, 2020, the company has no reserves available for cash or physical distribution to shareholders [113]. Environmental and Social Responsibility - The company has implemented health measures in response to COVID-19, ensuring the safety of employees while maintaining operations in Hong Kong [37]. - Total greenhouse gas emissions during the reporting period amounted to 10,649.3 kg CO2 equivalent [167]. - Energy consumption recorded was 120,327 kWh, and water consumption was 327 cubic meters [169]. - The company has implemented strategies to reduce business travel and energy consumption, including the use of video conferencing [168]. - The Jeanette project has obtained waste management permits under the National Environmental Management Act (1998) [167]. - The company has not generated any hazardous waste during the reporting period as mining projects are still in the development stage [168]. - There were no reported violations of environmental laws during the reporting period [168]. - The company has established a health and safety management system named "Safety Road" to ensure employee well-being [178]. - There were zero fatalities and zero work-related injury days lost during the reporting period [180]. - The company emphasizes the importance of efficient water resource management due to operations in water-scarce regions [172]. - The company has established a supplier selection and evaluation mechanism to ensure compliance with relevant laws and regulations [187]. - The company has implemented social and labor programs aimed at improving the social and economic welfare of local communities [192]. - The company is committed to enhancing the quality of life and making a long-term positive impact on the communities where it operates [192]. - The company has a policy to obtain at least three quotes for supplier selection [187]. - The company encourages employees to report any illegal or unethical behavior confidentially [190]. - The company aims to contribute to the socio-economic development of the communities where it operates [196]. Corporate Governance - The company has a diverse board with members having extensive experience in mining and finance, enhancing its strategic decision-making capabilities [123][124]. - The independent non-executive directors play crucial roles in the audit, remuneration, and nomination committees, ensuring corporate governance [126][127]. - The board's composition includes members with significant experience in investment and corporate banking, which supports financial strategy [124]. - The company has not disclosed any significant interests or positions held by directors or their associates in related companies as of the reporting date [132]. - As of March 31, 2020, the company had granted options under the share option plan that remain valid and unexercised, allowing for the subscription of 174,933,901 shares, equivalent to 0.96% of the issued shares as of the report date [149]. - Major shareholders as of March 31, 2020, include Goldborn Holdings Limited with 2,001,362,075 shares (11.03% of issued ordinary shares) and Mandra Materials Limited with 777,434,722 shares (4.28%) [153]. - The company maintains a sufficient public float of no less than 25% of its issued shares as required by listing rules [157]. - The company has received annual confirmations from independent non-executive directors regarding their independence from the company [158]. - Deloitte has audited the financial statements for the year ending March 31, 2020, and is eligible for reappointment at the upcoming annual general meeting [159]. - The company has not made any significant changes to its capital structure during the year [106]. - The company has not purchased, sold, or redeemed any of its listed securities during the year [107]. - The company has no significant contracts with directors or major executives that would result in direct or indirect interests [131]. - The board of directors has no service contracts that cannot be terminated within one year without compensation, except for statutory compensation [128]. Operational Updates - The company is actively seeking opportunities to acquire short-term gold production assets to benefit shareholders and generate cash flow amid rising gold prices, which are approaching $1,800 per ounce [32]. - The company is transitioning from a gold project developer to a gold producer, with a focus on advancing project construction and eventual production [29]. - The company is in discussions with MCC regarding the basic design agreement for the Jeanette project, moving towards the total price proposal stage [28]. - The company has engaged a local professional team to assess the latest developments regarding the Pakistan target company [89]. - The company is actively monitoring the progress of the Pakistan target company and its mining license conversion, which is now effective [87]. - The company has received environmental permits for the dewatering and construction phases of the Evander project [98]. - The sale process of the company's 100% interest in HIL is ongoing, with potential buyers facing challenges related to export logistics [99]. - The company and MCCI decided to wait for the feasibility study results of the Jeanette project before investing more time and resources into the Evander project [95]. - The remaining work on the Evander contract is expected to take 12 to 18 months from the decision to proceed [97]. - The company has established solid relationships with stakeholders and implemented effective communication mechanisms to manage their expectations [164].

Financial Performance - For the six months ended September 30, 2019, the company reported a loss before tax of HKD 15,109,000, compared to a loss of HKD 13,292,000 for the same period in 2018, representing an increase in loss of approximately 13.7%[4] - Total comprehensive loss for the period was HKD 40,764,000, a significant decrease from HKD 137,508,000 in the prior year, indicating a reduction of approximately 70.4%[4] - The company's other income decreased to HKD 966,000 from HKD 9,490,000 year-over-year, reflecting a decline of approximately 89.8%[4] - The administrative and operating expenses were reduced to HKD 14,820,000 from HKD 22,454,000, showing a decrease of about 33.9%[4] - The company reported a basic and diluted loss per share of HKD 0.07 for both periods under review, consistent with the previous year[8] - The company did not incur any income tax expenses for the period, maintaining the same status as the prior year[4] - The company reported a significant increase in total expenses, with a total expenditure of HKD (137,508) thousand for the six months ended September 30, 2019[28] - The company reported a net decrease in cash and cash equivalents of HKD (32,883) thousand for the six months ended September 30, 2019, compared to HKD (23,663) thousand in 2018, reflecting a 38.8% increase in cash outflow[28] Assets and Equity - The company's total assets as of September 30, 2019, were HKD 4,116,703,000, slightly down from HKD 4,156,885,000 as of March 31, 2019[11] - The equity attributable to the owners of the company was HKD 3,290,521,000, a decrease from HKD 3,322,883,000 at the end of the previous reporting period[13] - Cash and cash equivalents as of September 30, 2019, amounted to approximately HKD 206,103,000, a decrease from HKD 239,062,000 as of March 31, 2019[80] Cash Flow - The net cash used in operating activities for the six months ended September 30, 2019, was HKD (28,483) thousand, compared to HKD (17,943) thousand for the same period in 2018, indicating a 58.5% increase in cash outflow[28] - The net cash used in investing activities for the same period was HKD (4,400) thousand, a decrease of 23.0% from HKD (5,717) thousand in 2018[28] - The company’s cash flow from financing activities was nil for the six months ended September 30, 2019, compared to HKD (3) thousand in 2018, indicating a shift in financing strategy[28] - The company’s cash flow from operating activities showed a negative trend, with a total of HKD (28,483) thousand for the current period, highlighting potential operational challenges[28] Strategic Initiatives - The company continues to explore opportunities for market expansion and new product development as part of its strategic initiatives[4] - The company focused on advancing the feasibility study for the Jeanette project and related community social and labor plans during the review period[83] - The company did not conduct any mining or production activities during the review period[84] Projects and Expenditures - The Evander project has a total mineral resource of 7.59 million ounces of gold, with indicated and inferred resources accounting for 71% of the total[87] - The estimated mineral reserves in the Kimberley Reef area of the Evander project are 19.64 million tons containing 4.29 million ounces of gold, with an average grade of 6.80 grams per ton[85] - Total expenditure for the Evander project during the period was 5.74 million Rand, broken down into 0.24 million Rand for consultants, 4.20 million Rand for personnel, and 1.30 million Rand for indirect expenses[90] - The Jeanette project has a total mineral resource of 46.51 million tons containing 15.26 million ounces of gold, with an average grade of 5.57 grams per ton[94] - Total expenditure for the Jeanette project during the period was 8.14 million Rand, with 2.14 million Rand for consultants, 4.50 million Rand for personnel, and 1.50 million Rand for indirect expenses[98] - The company invested 8.14 million Rand in the Jeanette project during the review period[92] - The Evander project incurred a total expenditure of 5.74 million Rand during the review period[90] Corporate Governance - The company has complied with the corporate governance code as per the listing rules, except for the deviation regarding the appointment and re-election of independent non-executive directors[177] - The audit committee, consisting of three independent non-executive directors, has discussed the accounting principles, internal controls, risk management, and financial reporting matters with management for the six months ended September 30, 2019[181] Shareholder Information - Major shareholders include Goldborn Holdings Limited with 2,001,362,075 shares (11.03%) and Mandra Materials Limited with 1,813,794,222 shares (9.99%) as of September 30, 2019[173] - The company has a stock option plan that allows for the issuance of shares up to 10% of the total issued shares as of January 4, 2010, with a maximum of 161,924,000 shares[158] - The company’s management discussed the importance of retaining skilled employees through the stock option plan[161] - The company has no outstanding short positions in its shares or related securities as of September 30, 2019[176] - The company’s management emphasized the strategic importance of the stock option plan in aligning employee interests with shareholder value[161]

Financial Performance - For the fiscal year ending March 31, 2019, the company reported a loss attributable to shareholders of approximately HKD 33,871,000, or a basic loss per share of HKD 0.19, compared to a loss of HKD 389,047,000, or HKD 2.14 per share in the previous fiscal year[39]. - The group did not record any revenue for the fiscal year ending March 31, 2019, consistent with the previous year, while the total comprehensive expenses amounted to approximately HKD 817,302,000, primarily due to foreign exchange losses from South African operations[41]. - As of March 31, 2019, the company's total assets were approximately HKD 4,167,185,000, with a capital debt ratio of zero, indicating no outstanding bank loans[42]. - The cash and cash equivalents balance as of March 31, 2019, was approximately HKD 239,062,000, an increase from HKD 162,906,000 in 2018[42]. - The company has no plans to declare dividends for the fiscal year ending March 31, 2019, as it does not meet the conditions for cash or physical distributions[162]. Project Development - The company has appointed MCCI International Incorporation Limited to conduct a feasibility study for the Jeanette project, which will be executed in phases to reduce capital requirements and expedite initial production[30]. - The company plans to transition from a gold developer to a gold producer, considering opportunities to expedite this transition[31]. - The company has decided to suspend further work on the Evander project to review the feasibility results of the Jeanette project before determining the optimal execution sequence for both projects[30]. - The feasibility study for the Evander project indicates an average annual gold production of 309,000 ounces over a 20-year mine life, with a cash operating cost of $486 per ounce[72]. - The estimated initial capital cost for the Evander project is $579.3 million, with a total capital cost of $714.7 million over the project's lifespan[72]. - The project is expected to produce approximately 4.11 million ounces of gold over its lifespan, with an average grade of 6.51 grams per ton[72]. - The Jeanette project has an estimated initial capital cost of $759.0 million and a total capital cost of $1,090.4 million over its lifespan[132]. - The project is expected to produce 7.243 million ounces of gold during its lifespan, with a cash operating cost of $343 per ounce[132]. - The project will utilize mechanized mining methods, significantly reducing dilution factors compared to traditional methods[130]. - The company agreed to allocate more time and resources to advance the Evander project, awaiting the results of the Jeanette feasibility study, which is expected to significantly reduce funding needs compared to Evander[151]. Mineral Resources and Reserves - The Evander project has an estimated mineral resource of 19.64 million tons with an average grade of 6.80 g/t, translating to approximately 4.29 million ounces of gold[53]. - The total estimated mineral resources for the Evander project as of February 5, 2016, amount to 29.37 million tons with an average grade of 8.05 grams per ton, containing approximately 7.59 million ounces of gold[67]. - The estimated mineral resource for the Jeanette project includes 19.21 million tons at a grade of 11.52 g/ton, totaling 7.12 million ounces of gold[93]. - The total measured and indicated resources for the Jeanette project amount to 10.99 million tons with a grade of 27.27 grams per ton, translating to approximately 9.64 million ounces of gold[101]. - The mineral reserves are based on a commodity price of ZAR 455,736 per kilogram of gold, equivalent to approximately USD 1,350 per ounce, which is significantly lower than the ZAR 580,638 per kilogram used for the latest boundary grade calculations[97]. Market Conditions - The global gold production in 2018 remained above 3,300 tons, with expectations to reach nearly 3,500 tons in 2019, indicating a significant increase in demand and production challenges[33]. - The geopolitical instability and economic uncertainties are expected to support strong gold prices, with predictions of prices rising above USD 1,400 per ounce[36]. Environmental and Regulatory Compliance - The environmental impact assessment for the Jeanette project was approved on December 20, 2016, and the mining rights were granted on June 25, 2017[124]. - TGS has provided environmental certification for the dewatering and construction phases of the Evander project, with modifications to the environmental impact assessments required[90]. - The environmental impact assessment for the dewatering phase of the Evander project was approved, and the water use permit application was submitted and approved in 2017[153]. Corporate Governance and Management - Neil Andrew Herrick has been the CEO and Executive Director since April 2013, bringing over 25 years of experience in the gold mining industry[180]. - The board includes independent non-executive directors with extensive experience in finance and mining, enhancing corporate governance[184][185]. - The company has a commitment to safety and environmental standards, with dedicated committees overseeing these areas[185]. - The company is actively involved in human resources management, with a focus on enhancing operational efficiency[182]. - The company has a strong leadership team with diverse backgrounds in mining, finance, and management, contributing to its strategic direction[180][184]. Shareholder Information - As of March 31, 2019, the total number of share options granted under the company's share option plan that remain valid and unexercised is 178,203,974 shares, equivalent to 0.98% of the issued shares as of the report date[199]. - The maximum number of shares that can be issued upon the exercise of options under the share option plan is capped at 10% of the total issued shares as of January 4, 2010, which amounts to a total of 161,924,000 shares[195]. - The company has granted a total of 215,084,218 share options, with 36,880,244 options canceled, resulting in 178,203,974 options still available[198]. - The shareholding of Christiaan Rudolph de Wet de Bruin is 373,866,354 shares, representing 2.06% of the total shares[192]. - Neil Andrew Herrick holds 55,899,452 shares, which is 0.31% of the total shares[192]. - Zhang Peiqin holds 19,215,637 shares, representing 0.11% of the total shares[192]. - Li Xuexian holds 17,380,622 shares, which is 0.10% of the total shares[192].