VATUKOULA 
GOLD MINES
AIM: VGM
www.vgmplc.com
Annual Report
and Accounts 2012
For the year ended 31 August 2012 Vatukoula Gold Mines Plc. (“VGM” or
“Group”) explores, discovers, and develops
gold mining operations. The Group is
primarily focused on its operations on the
Pacific Island of Viti Levu, Fiji.
www.vgmplc.com
Forward-looking Statement
This annual report contains ‘forward-looking information’, which may include, but is not limited to,
statements with respect to the future financial and operating performance of VGM, its subsidiaries,
investment assets and affiliated companies, its mining projects, the future price of gold, the estima-
tion of mineral resources, the realisation of mineral resource estimates, costs of production, capital
and exploration expenditures, costs and timing of the development of new deposits, costs and tim-
ing of the development of new ore zones, costs and timing of future exploration, requirements for
additional capital, governmental regulation of mining operations and exploration operations, timing
and receipt of approvals, licenses, and conversions under The Republic of Fiji and other applicable
mineral legislation, environmental risks, title disputes or claims, limitations of insurance coverage
and the timing and possible outcome of pending litigation and regulatory matters.
Often, but not always, forward-looking statements can be identified by the use of words such as
‘plans’, ‘expects’, ‘is expected’, ‘budget’, ‘scheduled’, ‘estimates’, ‘forecasts’, ‘intends’, ‘antici-
pates’ or ‘believes’, or variations (including negative variations) of such words and phrases, or state
that certain actions, events or results ‘may’, ‘could’, ‘would’, ‘might’ or ‘will’ be taken, occur or be
achieved.  Forward-looking statements involve known and unknown risks, uncertainties and other
factors that may cause the actual results, performance or achievements of VGM and/or its sub-
sidiaries, investment assets and/or its affiliated companies to be materially different from any future
results, performance, or achievements expressed or implied by the forward-looking statements.
Such factors include, among others, general business, economic, competitive, political and social
uncertainties; the actual results of current exploration activities; conclusions of economic evalua-
tions and studies; fluctuations in the value of UK Pounds Sterling relative to the United States Dollar,
Fijian Dollar, Australian Dollar and other foreign currencies; changes in project parameters as plans
continue to be refined; future prices of Gold; possible variations of ore grade or recovery rates; fail-
ure of plant, equipment or processes to operate as anticipated; accidents, labour disputes and
other risks of the mining industry; political instability, adverse weather conditions, insurrection or
war; delays in obtaining governmental approvals or financing or in the completion of development
or construction activities. 
Although VGM has attempted to identify important factors that could cause actual actions, events
or results to differ materially from those described in forward-looking statements, there may well be
other factors that cause actions, events or results to differ from those currently anticipated, esti-
mated or intended.
Forward-looking statements contained herein are made as of the date of this annual report and
VGM disclaims any obligation to update any forward-looking statements, whether as a result of new
information, future events or results or otherwise.  There can be no assurance that forward-looking
statements will prove to be accurate, as actual results and future events could differ materially from
those anticipated in such statements.  Accordingly, readers should not place undue reliance on for-
ward-looking statements due to the inherent uncertainty therein. Nothing in this annual report
should be construed as a profit forecast.
Overview
03 Our Business
04 Operational and Financial Highlights
07 Our Strategy
08 Chairman’s Statement
10 Chief Executive Officer’s Statement
12 Market Review
Performance
14 Key Performance Indicators (KPIs)
16 Operational Review
20 Geological Review
22 Financial Review
27 Corporate Responsibility
28 Risk Management
31 Reserves and Resources
Governance
34 Board of Directors
35 Directors’ Report
39 Corporate Governance Statement
Financial Statements & Other Information
40 Independent Auditor’s Report
41 Consolidated Statement of Comprehensive Income
42 Consolidated Statement of Financial Position
43 Company Statement of Financial Position
44 Consolidated Statement of Changes in Shareholders’ Equity
46 Company Statement of Changes in Shareholders’ Equity
47 Consolidated Statement of Cash Flows
48 Company Statement of Cash Flows
49 Notes to the Financial Statements
86 Corporate Information VGM acquired the mine in 2008
and aims to reach a sustainable
and profitable production level. 
We are currently in our next phase of
expansion at the mine, increasing our
production from the current base of
approximately 50,000 ounces per annum.
The mine currently has 4.2 million ounces of
Mineral Resources and 700,000 ounces of
Mineral Reserves.
The Vatukoula Gold Mine is located in the
northern part of Fiji’s main island,
approximately ten kilometres inland from
the coast and within the Tavua Basin. The
mine is located at the foot of the hills that
make up the Tavua volcanic crater. 
The mine operates within three Special
Mining Leases which cover a total area of
1,255 hectares. In addition VGM has the
right to explore areas outside the current
mining leases via Special Prospecting
Licenses that cover over 19,000 hectares of
the surrounding Tavua volcano.
The Vatukoula Gold Mine is currently both
an open pit and underground operation,
however in the medium-term it will become
predominantly an underground mine. 
Underground production is sourced from
four mining areas; Smith Shaft, Philip Shaft,
R1 Cayzer Shaft and Emperor Decline. The
Smith and Philip Shafts, and the Emperor
Decline serve as the main accesses to the
underground workings for personnel and
materials, and are used for ore and waste
haulage.
Once the ore is hauled to the surface it is
crushed, enriched and refined at our on-site
treatment plant, to produce Gold Dore.
Gold Dore produced at the mine is typically
80% gold, 19% silver and 1% base metals
such as copper and iron. The Gold Dore is
sold to the Perth Mint in Australia.
VGM has onsite workshops, assay labs and
produces its own power via diesel
generators.
Vatukoula Gold Mines Plc. is a UK public
company with its headquarters in London.
We are listed on the AIM market of the
London Stock Exchange under the symbol
VGM. The Group reports in Pounds Sterling
(£) in accordance with IFRS as adopted by
the European Union.
Overview Performance Governance Financial Statements & Other Information
03
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Our Business
Overview
Annual Report and Accounts 2012
VGM is the owner of the longest producing
gold mine in Fiji. Operating for over 75
years, the mine has produced in excess of
seven million ounces of gold.  04
Overview
Annual Report and Accounts 2012
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Operational and Financial Highlights 
2011/2012
EBITDA loss
2
Turnover
1
£54.9m
(2011: £47.9 million)
Continued capital investment
£16.1m
(2011: £11 million)
£1.6m
(2011: Profit of £2.2 million)
Cash position at year-end Loss for period
£7.1m
(2011: £2.3 million)
Completion of equity placement
3
£5.4m £2.4m
1
Variance driven by higher gold prices.
2
As a result of increase in input costs.
3
Through the issue of 9 million shares in April 2012.
2011 2012
Ore Processed (Tonnes ‘000)
60
50
40
30
20
498,123
479,524
Gold Shipped (Ounces)
60
50
40
30
20
Development (metres)
25
20
15
10
5
53,416
52,616
24,453
24,653 Overview Performance Governance Financial Statements & Other Information
05
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Operational Highlights
• Gold shipped was 52,616 ounces for the year ended August 2012
• Capital development more than doubled compared to last year. This increase is the 
result of continued investment in mine infrastructure, which will allow us access to 
high-grade ore bodies, such as the Cayzer / Prince
• Main underground capital development projects are on target:
– Decline Philip Shaft expected to hole into 20 level during the first quarter of 2013
– Decline to access Cayzer / Prince on target and we anticipate being able to mine 
from this orebody in March 2013.
Resource Development and Exploration
• Measured Mineral Resource base increased by 7% to 7.7 million tonnes at 6.2 grams 
of gold per tonne (1.5 million ounces)
• Completed Inferred Mineral Resource estimation at the Waikatakata surface deposit, 
5.1 million tonnes identified at 0.9 grams of gold per tonne (0.1 million ounces)
• Intersected three new high-grade mineralised structures at Vatukoula, subsequently 
named the Nielsen Deposit. Significant composite mineralised intersections include:
– 124.7 grams of gold per tonne over 0.46 metres;
– 33.60 grams of gold per tonne over 2.86 metres;
– 25.46 grams of gold per tonne over 1.07 metres; and 
– 39.00 grams of gold per tonne over 0.48 metres. 06
Overview
Annual Report and Accounts 2012
www.vgmplc.com
We operate in a responsible manner in
relation to our people, the environment and
the communities that we inhabit. As a
business these elements are important in 
the achievement of our strategic priorities. Current production from the
Vatukoula Gold Mine to a targeted
sustainable and profitable rate of
production.
Develop enough underground
access, or development, allowing
access to the required mining areas
and therefore tonnages and grade.
Achieve a production of 65,000
ounces.
Achieve normal and capital
development metres of 26,000
metres.
52,616 ounces shipped. Production
was limited by the water ingress in
April 2012 and local geological
variations which hampered access
to some of the orebodies
24,653 metres of operating and
capital development carried out.
Development was limited by the
water ingress in April 2012 and local
geological variations which
hampered access to some of the
orebodies.
A significant  increase in capital
development  to 4,975 metres
compared to 2,307 metres in 2011.
Overview Performance Governance Financial Statements & Other Information
07
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Our Strategy
We have a clear strategy: to deliver to our
shareholders the full potential of the
Vatukoula Gold Mine. We aim to achieve this
by focusing on four key strategic priorities:
Expand
Strategic Priority Operational Drivers Targets in 2012 Achievements in 2012
The targeted production rate beyond
current Mineral Reserves. 
Further define the large mineral
resource inventory and converting
this to Proven and Probable Mineral
Reserves to both replace ounces
mined and increase the current
Mineral Reserve base.
Begin reserve and resource drilling
programme with the objective of
increasing our Mineral Reserve base.
Over 24,000 resource definition
metres drilled in the current year.
Increase in Measured Resources 
of 7%.
Sustain
Our working practices and working
relationships to target lower unit
costs on a per tonne basis.
Target key operational drivers and
costs that have high internal rates of
return and low capital costs.
Further negotiations with Fiji Sugar
Corporation (“FSC”) with the aim of
signing a memorandum of
understanding.
Continue bio-oxidation leach
testing.
Complete tendering process on key
consumables at the mine.
Final version of memorandum of
understanding agreed. The Company
is awaiting signature by the FSC.
Our involvement in this project via an
off-take agreement on the power
produced from the plant will
approximately halve our power costs
During the year testing resulted in
94% recoveries.
Tendering complete on explosives
resulting in a 10% saving in unit
costs.
Optimise
Through greenfield opportunities in
the area surrounding the Vatukoula
Gold Mine.
Evaluate, define and explore the
Special Prospecting Licenses within
the Tavua Basin.
Complete Mineral Resource
statements on surface deposits.
5.1 million tonnes at 0.9 grams per
tonne identified as Inferred Mineral
Resource in the current year.
Grow Colin Orr-Ewing
Non-Executive Chairman
08
Chairman’s Statement
In December 2011, I wrote that many of the
democracies of the World were discovering
the benefits of the printing press. This
discovery would be beneficial to the price of
gold in the medium-term, as gold regained
its historic role as a store of value. 
Overview
Annual Report and Accounts 2012
www.vgmplc.com
Whenever politicians cloak an
action with a new description,
warning bells ring. Quantitative
Easing has become the
acceptable name for ‘printing
money’. What does it mean?
Easing means reducing pain or
difficulty; quantitative means
‘relating to or concerned with
quantity’. The complete phrase
therefore means ‘reducing the
pain or difficulty by adjusting 
the quantity of something’,
presumably money: a
wonderfully opaque description
for debasing the value of
currency.
Last year, I reflected that global gold
production had not varied very greatly year
on year; 4,000 tonnes were mined in 2003
and 4,500 tonnes in 2011. Global reserves
of gold total approximately 171,000
tonnes, held by various groups in the
commercial, fiscal and investment sectors:
jewellery accounts for 50%, the Central
Banks 17% and private investors 19%.
The re-branding of gold as ‘money’ is
reflected in the records of the Central
Banks. From 1990 until 2007, Central
Banks were net sellers of gold. Since 2008,
they have been net buyers of gold,
averaging purchases of about 400 tonnes
a year. It is not clear who supervises the
accounts of the Central Banks, as some of
them, including the Federal Reserve Bank,
are still privately owned.
Whilst there has been a tightening in the
availability of gold in reserve form, the
precious metal ore has become
increasingly difficult to find. During the
1990s, it was common to have global
discoveries of 100 million ounces per year.
In 2009, an additional 19 million ounces
were discovered, but this fell to 10 million
ounces in 2010 and perhaps 3 million
ounces in 2011. With the difficulty of Overview Performance Governance Financial Statements & Other Information
09
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discovering new reserves has come the
realisation that the ‘low-hanging fruit’ has
already been discovered and that grades
of new discoveries are likely to follow the
path of the last few years, trending
downwards from 2.2g/t in 2002 to perhaps
1.4 g/t in 2011.
Not only has success with the drill bit
proved globally elusive, but the cost of
extracting that gold has also climbed
dramatically. Cash costs are always used
when comparing gold companies’
performances, but in reality total costs
should be used for peer group
comparisons. The average total cost of
producing an ounce of gold was over
US$1,000 per ounce in 2011 and is likely
to be about US$1,300 for 2012. In 2002,
the total cost of producing an ounce of
gold was US$500. In addition there was a
recent study by CIBC that put the
replacement cost for an ounce of gold right
at US$1,700. 
This year has been a difficult one for
Vatukoula. Grades extracted from the mine
remained static as management pressed
ahead to reach the deeper, richer grades in
the lower levels of the Philip Shaft. There
was more careful allocation of ore going
into the mill, with the decline snaking down
to Level 20 in Philip Shaft. This is the ‘guts’
of the mine, where the mine planners have
been concentrating development. It has
been apparent for some time that the mine
would need more investment and since
March 2012 management has been in
discussion with strategic shareholders in
the Far East. A Chinese investment
company, Zhongrun Resource Investment
Company (“Zhongrun”) subscribed for 9
million shares in April 2012. 
I am happy to report that post year-end
Zhongrun, has taken up a further
placement of 20 million shares. Together
these investments make Zhongrun the
largest shareholder in the Company, with a
holding of approximately 25%. Dave
Paxton, our CEO, will address this and the
general operational record in his own
statement.
Moving forward, I am confident that the
actions of our Mine Management and
Operational Teams took this year,
supported by the Board, will help to
position your company to meet its
production targets. 
As we go into 2013, I remain optimistic
about the prospects for our industry, and in
particular, our company.  Once again, I
take this opportunity to thank our hard
working and dedicated team and
acknowledge the support provided to the
company by all our stakeholders and
suppliers.
Colin Orr-Ewing
Non-Executive Chairman
9 January 2013 However during the year we
faced two periods of heavy
rainfall that caused temporary
disruptions in production. The
rainfall, together with
unexpected local geological
variations in the Matanagata ore
body prevented us from
achieving our stated 
production target.
To mitigate against disruptions caused by
heavy  rainfall several initiatives were
introduced to increase pumping capacity
and to limit inflow into mine workings. The
pumping initiatives have exceeded our
expectations and will allow access much
earlier than previously estimated to some
higher-grade areas of the mine that have
been flooded for many years.
Despite the heavy rainfall experienced in
January and April of this year all our main
development drives remain on target. 
Operating and Financial
Performance
VGM sold 52,616 ounces of gold in the
year at an average cost of US$1,627 per
ounce. The main driver to the higher cash
cost per ounce was the increased unit cost
per tonne. Operating costs on a per tonne
basis have increased to US$179 overall;
this increase is primarily driven by higher
fuel prices and heavy vehicle
consumables. Given that on-site diesel
generators provide all our power
requirements, we are particularly sensitive
to medium term increases in fuel prices.
40% of the total increase in mining costs
experienced this year was the result of
higher diesel prices.
The positive movement of the gold price
mitigated some of the effects of higher
cost base, with our gross profit for the year
being £1.4 million. After administrative
expenses, foreign exchange gains and
depreciation and amortisation expenses
the underlying loss was £6.6 million. 
As mentioned before, production was in
part limited by the heavy rainfall in
February and April 2012, which limited
production in the lower Philip shaft area, a
high-grade area of the operations. An
additional shortfall in production can be
attributed to the sterilisation of a planned
mining area in the Mantanagata East ore
body. Operational development was
carried out to access this area, however
following grade control drilling and
geological mapping, it was established
that local geological and structural controls
were not suitable for mineralisation and a
decision was made to suspend further
development and mining in this area of the
Mantanagata East ore body. 
During the year our Mineral Resource base
remained at 4.2 million ounces, however
our Mineral Reserves decreased by 50,000
ounces, mainly due to depletion, to
700,000 ounces.
Development of the Vatukoula 
Gold Mine
This year has been one of continued
development at the Vatukoula Gold Mine,
with increases in total underground tonnes
mined and substantially more in capital
metres developed. We achieved 24,653
metres of total development in the current
year, which was slightly lower than the
yearly target of 26,000 metres as a result 
of the heavy rains of February and April
2012.
Total development at Vatukoula includes
both in-stope development and
infrastructure development. It is
infrastructure development, which is
comprised of strike drive and capital
development that will allow access to new
mining areas and ultimately ensure that the
mine reaches its long-term production
targets. In this regard, we significantly
increased our capital development to
4,975 metres and our strike drive
development decreased slightly to 4,034
metres in the period under review.
10
Chief Executive Officer’s Statement 
During the last twelve months we have
made significant operational progress 
with increased capital development rates
and increases in total underground 
tonnes mined. 
Overview
Annual Report and Accounts 2012
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David Karl Paxton
Chief Executive Officer Overview Performance Governance Financial Statements & Other Information
11
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Work on the 18 level Philip Shaft decline
remains on target and is expected to hole
into the bottom of the Philip Shaft in the
first quarter of 2013. This decline will allow
the mine to clean out the historical spillage
and re-equip the Philip Shaft between 18L
and 20L, as well as provide access to the
Prince William and 1500 Split orebodies
below 18L. Cross-cut development to
these orebodies from this decline has
already commenced and is ahead of
current schedules. Decline development
for the high-grade Cayzer/Prince orebody
(which has Proven and Probable Gold
Reserves totalling 100,000 and 130,000
tonnes at grades of 17.80 g/t and 16.85 g/t
respectively) commenced in August and is
currently running ahead of schedule to
allow access for mining from March 2013.
Any underground mine requires the
construction of major infrastructure far in
advance of the commencement of
production and at the end of the last
financial year we stated that it is our
intention to continue our capital investment
programme at the Vatukoula Gold Mine.
This capital investment is expected
ultimately to enable the mine to produce at
our targeted rate of production on a
sustainable and cost-effective basis.
Sustainable Power
During the period the FSC completed a
bankable feasibility study on the proposed
power project at the Rarawai Sugar Mill.
The project has been designed to produce
sufficient power for both the Rarawai Mill
and VGM.  The capital cost is estimated to
be in the region of US$130 million to
US$160 million depending on an owner
build or construction contractor option.
We believe that a long-term power supply
from a source that is not beholden to the
international hydrocarbon price would
provide a significant benefit to the long-
term operations at the Vatukoula Gold
Mine, through lowered operating costs.
The FSC has stated that the Rarawai
Biomasse power project will provide power
to VGM at a cost of F$ 0.23 per kWh (US$
0.12 per kWh). For the current year our
total cost of power at Vatukoula was
approximately F$0.61 per kWh (US$ 0.34
per kWh). 
On 6 March 2012, the FSC formally
announced that it will be partnering VGM
on the Rarawai Biomasse power project.
Vatukoula and the FSC have agreed the
terms of a memorandum of understanding
and we are awaiting formal signature by
the board of the FSC.
Resource Development and
Exploration
During the first quarter of the year our
drilling programme focused on the
continued exploration programme started
in January 2011. The most significant
discovery of this programme was the
intersection of several mineralised
structures which we collectively named the
Nielsen Deposit. Drilling on the Nielsen
Deposit intersected grades as high as
33.60 grams of gold per tonne over 2.86
metres and represents the first major new
discovery at Vatukoula Gold Mines for a
considerable period.
After the first quarter all of our drilling
capacity was focused on the resource
development programme. This drilling
targeted both inferred and unclassified
mineral resources and will be used in the
calculation of the 2013 Mineral Reserve
and Resource estimate. The majority of
this drilling was carried out on the
Matanagata East ore body and was below
management expectations, therefore we
do anticipate that as a result of this drilling
there may be a reduction in mineral
resources in the Matanagata East ore
body. Drilling was also carried out on the
Prince William ore body, these results were
again broadly in line with expectations,
with some encouraging signs of resource
upside potential. 
Post Balance Sheet Events
Subsequent to year-end VGM raised £6
million via the issue of 20 million new
ordinary shares. These shares were placed
with our strategic shareholder, Zhongrun,
which after the issue of these shares has
approximately 25% of the enlarged share
capital of VGM. VGM has also agreed that
Zhongrun will be entitled to propose four
nominees for election as Directors, subject
to the approval by the Nominating
Committee and election by shareholders.
We welcome the continued support of
Zhongrun and look forward to further
developing our valuable strategic
relationship to assist in the development of
the Vatukoula Gold Mine.
Outlook
As is evident from my report we have had
limited success in achieving our targets
that we set out at the beginning of the
year. In particular both our production and
development targets were not achieved, as
a result of unseasonal weather conditions
and local geological variations. However in
other aspects we have been successful,
including the further definition of Mineral
Resources, long term savings achieved
with our explosives suppliers and most
importantly the capital development
achieved during the year which has
remained either ahead of, or on schedule.
It is the development that we have
achieved in the year that will assist in
opening high-grade areas that will sustain
production in the longer term. Over the
coming first half year (February 2013) this
increase in capital development will
continue to impact our gold production,
subsequent to this production from the
Cayzer/Prince ore body will come on
stream and production should increase to
targeted production levels.
In conclusion, I would like to thank all of
the operating staff at the Vatukoula Gold
Mine for their commitment, enthusiasm
and enormous effort in what has been a
challenging year in the development of the
business.  I would also like to thank the
Board for their support, advice and
commitment throughout the year.  
The key business objectives and their
relation to our strategic priorities for
2013 are:
Expand
Achieve normal and capital development
metres of 16,500 metres
Sustain
Continue the reserve and resource drilling
programme with the objective of increasing
our Mineral Reserve base
Optimise
Complete signing of memorandum of
understanding with FSC
Negotiate a power off take agreement
Grow
Carry out further drilling on key targets
identified during the current year
David Karl Paxton
Chief Executive Officer
9 January 2013 12
Market Review
It has been another strong year of demand for
gold; the volume of gold coming into the
market has declined, along with average
grades extracted through primary mining. It is
expected that current high prices will continue
in the foreseeable future.
Overview
Annual Report and Accounts 2012
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Information contained in the
following gold sector market
outlook is taken from the latest
statistics published by the World
Gold Council (www.gold.org), the
industry body that reports and
analyses trends associated with
the supply and demand of gold.
Such information is accurate at
the time of the production of 
this report.
At the beginning of 2012, the gold price
had increased on a year-by-year basis for
the tenth consecutive year. Starting the
year at US$1,530 per ounce, following a
more than 12 percent price increase seen
in the full year 2011, the price of gold has
continued to perform strongly through
2012, despite a short-term price drop mid-
year, and rose above the US$1,700 per
ounce marker at the end of August 2012.
The price remains at high levels and
currently stands at US$1,645 per ounce (as
of 7 January 2013).
Gold prices in the reporting year opened at
US$1,826 per ounce (1 September 2011)
and closed at US$1,655 per ounce (31
August 2012). The average gold price
(based on mean monthly London Fix
pricing) was US$1,672 per ounce.
Demand
Demand for gold grew to 4,067 tonnes in
2011 (2010: 3,812 tonnes), worth an
estimated US$206 billion. The primary
driver of growth was the investment sector,
with demand from the jewellery and
technology sectors remaining resilient in the
face of higher growth prices, and central
banks making significant volume
purchases. Demand for gold bars and coins
accelerated, as investors took advantage of
gold’s status as a long-term insurance and
store of value, rather than as a means of
speculation. This trend reflects on-going
concerns about the financial health of the
euro area, continued low real interest rates
in several developed economies, positive
price expectations and the poor
performance of many alternative
investments.
Demand in the key China and India markets
remained strong, with both countries
maintaining their strong cultural links with
the precious metal. However, concerns
about a Chinese economic slowdown and
the increasing maturity of the market, and
substantial currency fluctuations in India
resulting in domestic gold price swings,
tempered growth in demand. Central
banks, however, acquired 440 tonnes of
gold in 2011, the highest figure reported
since 1964. Emerging market central banks
sought to diversify their foreign exchange
holdings; signatories to the Central Bank
Gold Agreement (CBGA) generally did not
sell gold holdings.
2200
2000
1800
1600
1400
1200
1100
800
600
400
200
0
5 Jan
2007
29 Feb
2008
24 Apr
2009
18 Jun
2010
12 Aug
2011
5 Oct
2012
Five-year Gold Price 2007-2012 (US$/oz) Overview Performance Governance Financial Statements & Other Information
13
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More recently reported research from the
World Gold Council (Q3 2012) confirms that,
following a mid-year drop, demand in Q3
totalled 1,085 tonnes (valued at US$58
billion), a 10 percent increase over the
previous quarter, but, in value terms, 14
percent lower than the equivalent period in
2011, a period of exceptional demand.
Whilst investor purchases of bar and coin
dropped markedly, and the jewellery and
technology sectors reported moderate
declines in demand, purchases made by
gold backed exchange traded funds (ETFs)
experienced strong inflows (49 percent). 
India was the strongest performing market
(reporting year-on-year growth rates of 7 per
cent in jewellery and 12 per cent in
investment demand for Q3 2012). Gold
demand in China, however, lost momentum,
although there are signs of longer-term
strength in the China market.
Supply
Volumes of gold coming into the market
totalled 3,994 tonnes in 2011. This
represented a 4 per cent decline compared
to 2010’s 4,108 tonnes. Primary mined
production increased slightly, to 2,810
tonnes, but this was more than offset by a
contraction in recycling activity. The 4 per
cent rise in primary production was the
result of moderate increases in operation at
a number of mines, in China, the US, Russia
and such African producer countries as
Eritrea, Sudan and Burkina Faso.
Meanwhile, Indonesia saw a substantial
decline in production (-36 percent), as did
Australia and South Africa, the latter
hampered by labour, energy and
infrastructure issues.
The drop off in supply has continued into
2012, with Q3 figures showing a 2 percent
contraction compared to year-earlier levels.
Lower levels of recycling in industrialised
markets continued to restrict supply, the
result of an increased acceptance of higher
price levels, despite depletion of near-
market stocks. The year-on-year 1 percent
drop in primary mine production – the
largest quarterly fall since Q3 2008 – is the
result of disappointing results for a number
of gold production operations, lower than
expected growth at a number of new or
recovering mines and the Q3 strikes in
South Africa.
China, Mexico, Russia and Canada
reported national gold production
increases, but substantial declines occurred
elsewhere. Indonesian production
continued to fall, primarily the result of
changing mine plans at the Grasberg Mine.
South African production fell by 9 tonnes,
mostly due to strike action, the results of
which are expected to spill over into Q4 and
potentially beyond. 
Outlook & Pricing
The overarching driver of the gold price, for
2013 and beyond, is the development of the
global financial crisis and the levels of debt
built up by several Western governments.
Continued uncertainty about the state of the
global economy, coupled with the trend
towards deleveraging (i.e. reduction of debt),
fiscal stimulus measures and geopolitical
risks relating to such countries as Iran, is
expected to bolster the status of gold as an
attractive insurance asset or store of value
for investors.
For this reason, near-term gold pricing
outlooks are generally bullish. Deutsche
Bank AG recently raised its outlook for gold
in 2013 (to US$2,113 per ounce) and 2014
(US$2,000 per ounce), citing recent moves
by central banks to expand their balance
sheet as a particularly significant trend.
Similar sentiments were voiced in November
2012 by Jamie Sokalsky, Barrick Gold’s
CEO, who envisaged prices of US$2,000
per ounce and higher for 2013, driven by
strong demand fundamentals. Other
analysts are more circumspect. HSBC
recently raised its average price forecasts
for 2013 to US$1,850 per ounce, and to
US$1,775 per ounce for 2014. The London
Bullion Market Association expects to see
prices rise to US$1,849 per ounce by
September 2013.
Supported by strong demand fundamentals
and static or falling supply, Vatukoula Gold
Mines believes that the price of gold will
remain at historically high levels for the
foreseeable future, with prices for 2013 and
2014 remaining comfortably above the
US$1,400 per ounce marker. Gold performs
well in scenarios of economic uncertainty
and in acute fiscal environments, both as a
result of deflation (driven, for example, by
global debt reduction) and of inflation (which
could occur should public debt levels
increase further). 
Allocations of gold will therefore remain
imperative for many large-scale and smaller
investors, funds and central banks, looking
for a ‘safe haven’ investment asset.  14
Key Performance Indicators (KPIs)
We assess the performance of our business against several KPIs that
are aligned to our strategic and operational goals. These KPIs are
monitored on a continuous basis and allow us to prioritise operational
objectives and measure progress against our strategy.
Performance
Annual Report and Accounts 2012
www.vgmplc.com
Financial KPIs
Data
Turnover
(£’000,000)
EBITDA
1
(£’000,000)
Cash cost per
ounce sold
1
(US$/Oz)
Cash cost per 
tonne mined 
& milled
1
(US$/tonne)
Operating cash
flow per share
(pence/share)
Turnover volume of
gold and silver sold
during the period
multiplied by the gold
and silver price
achieved over the
period
EBITDA (earnings
before interest, taxes,
depreciation, and
amortisation) is the net
profit or loss excluding:
• finance income:
• finance expense:
• tax expense
• depreciation and 
amortisation
Cash cost per ounce
sold is calculated by
dividing the aggregate
cash costs incurred in
our mining operations
by the ounces of gold
sold.
Cash cost per tonne
mined & milled is
calculated by dividing
the aggregate cash
costs incurred in our
mining operations by
the tonnes mined and
milled.
Net cash generated in
operating activities is
calculated by dividing
the operating cash flow
generated or utilised in
operations by the
weighted average of the
number of Ordinary
Shares in issue.
Definition
(Full definition 
for non-IFRS 
measures are 
provided on 
page 26.)
Turnover totalled 
£54.9 million in 2012,
an increase of 15% 
on 2011, as a result of
increased gold prices.
(Further information is
set out in the Financial
Review on pages 22 
to 26)
EBITDA was (£1.6)
million, a decrease of
£3.8 million on the year
ending 2011. This
reduction was driven by
higher unit costs.
(Further information is
set out in the Financial
Review on pages 22 
to 26)
Cash cost per ounce
sold increased to
US$1,627 as result of
increased unit costs.
(Further information is
set out in the Financial
Review on pages 22
to 26)
Cash cost per tonne
mined & milled
increased from
US$145/tonne in 2011
to US$179/tonne in
2012. The majority of
this variance was
attributable to increases
in mining costs. (Further
information is set out in
the Financial Review on
pages 22 to 26)
Operating cash flow
per share was 6.91
pence in 2012
compared to (2.73)
pence in 2011. This
change was primarily
attributable to increases
in creditors and other
changes in working
capital (Further
information is set out in
the Financial Review on
pages 22 to 26)
Performance 
in 2012
Turnover is a useful
indicator to measure
our progress towards
our targeted production
and the effect of
changing gold prices on
our profitability and
operating cash flow.
EBITDA is a useful
indicator of the Group’s
ability to generate
operating cash flow,
which will allow it to
fund its sustaining and
expansion capital
needs.
Cash cost per ounce
sold allows us to
monitor the key drivers
that impact on our
profitability, revenue per
tonne and cost per
tonne.
Cash cost per tonne
mined & milled allows
management to track
and compare costs on 
a monthly basis
regardless of variances
in tonnes mined and
milled.
Operating cash flow
per share is a measure
of the Group’s ability to
generate cash flow from
its business.
Importance
1
EBITDA, Cash cost per ounce sold, Cash cost per tonne mined and milled and Operating cash flow per share are non-IFRS financial performance measures with no standard 
meaning under IFRS. Refer to “Non-IFRS measures” on page 26 for detailed definitions on each measure.
2010
2011
2012
2010
2011
2012
2010
2011
2012
2010
2012
2011
2010
2012
2011
40.3
47.9
54.9
9.0
2.2
(1.6)
884
1,349
1,627
109
145
179
5.75
(2.75)
6.91 Overview Performance Governance Financial Statements & Other Information
15
www.vgmplc.com
Operational KPIs
Data
Gold Shipped
(Oz)
Total development
metres
(m)
Total resources
per share
(oz/1,000 shares)
Lost time injury 
frequency rate
(LTIFR)
Gold Shipped is the
Group’s total ounces of
gold sold during the
period.
Total development
metres represent the
aggregate of both
capital and normal
metres mined over the
period.
Total resources per
share are calculated as
the total of the
Measured, Indicated
and Inferred Resources
expressed as contained
ounces, divided by the
number of shares in
issue, using a ratio of 1
ounce per 1,000 shares.
Lost time injury
frequency rate (LTIFR)
is a measure of lost
time claims per million
hours worked.
Definition
(Full definition 
for non-IFRS 
measures are 
provided on 
page 26.)
Performance 
in 2012
Importance
Gold Shipped totalled
52,616 ounces,
compared to 53,461
ounces in the previous
year. This reduction was
a result of lower ore
tonnes being delivered
to the mill and lower
recovery rates. (Further
information is set out in
the Chief Executive
Officer’s Review and
Operational Review on
pages 10 to 11 and
pages 16 to 19.
Total development
metres were 24,652
metres for the year an
small increase of 199
metres over the year
ended August 2011.
This is a result of the
Group’s continued
development
programme. 
Total resources per
share equalled 42 Oz /
1,000 shares. (Further
information is set out in
the Reserve and
Resource Statement on
pages 31 to 33.
Lost time injury
frequency rate
increased from 13.13 in
2011 to 14.83 in 2012.
This represents a 13%
increase in our LTIFR.
(Further information is
set out in Corporate
Responsibility review on
page 27.
Gold Shipped
measures our progress
to achieving our long
term production targets. 
Total development
metres allows us to
measure our progress
towards having
sufficient working areas
to achieve our
production target.
Total resources per
share allows us to
measure our ability to
discover new ore
bodies and to replace
resource depletion as a
result of mining
activities.
Lost time injury
frequency rate aids us
to assess the
effectiveness of our
health and safety
programme and
controls at our
operations.
2010
2012
2011
2010
2012
2011
2010
2012
2011
2010
2012
2011
54,642
53,461
52,616
48
47
42
14
13.13
14.83
8,720
24,453
24,653 16
Operational Review
Substantial development work continued at
the Vatukoula Gold Mine in the year under
review, with the aim of establishing a long-life
operation at targeted gold production levels. 
Performance
Annual Report and Accounts 2012
www.vgmplc.com
Operationally we progressed
with our development
programme, with dramatic
increases in capital development
metres. We did however face
operational challenges that
prevented us from reaching 
our targeted production. Total
gold shipped was 52,616
ounces, a 2% decrease on last
year’s figure.
Underground Production
Total tonnes of ore, waste and capital
mined for 2012 increased by 12% to
477,089 tonnes compared to 2011. The
higher tonnages were driven by increases
in capital development, which increased
from 2,307 metres to 4,975 metres
representing a 116% increase over the
twelve months ending 31st August 2012.
The ore delivered from underground for
2012 was 304,042 tonnes, a 10%
decrease compared to the same period
last year. This reduction in ore delivered
was due in part to lower strike drive
development during the year, which is
typically delivered as ore.
The average underground grade for the
twelve months was 5.12 grams per tonne,
which was higher than the same period
last year (5.00 grams per tonne). We had
forecast higher grades in the latter half of
the year however both the heavy rainfall
and local geological variations within the
Matanagata ore body prevented us from
achieving these targets.
Underground operations remain focused
on infrastructure development which
should enable the mine to produce at our
long-term projected rate. The development
program remains on target with all major
development ends either ahead of, or on
schedule.
Surface Production
Production from surface oxides and a
sulphide waste pile situated near Philip
Shaft for the twelve months delivered
176,357 tonnes at a grade of 2.07 grams per
tonne. During the year surface operations
have switched from a low-grade oxide
waste dump to a sulphide waste dump in
the Philip Shaft vicinity. The sulphide waste
dump material is generally of a higher grade
compared to the oxide material, but does
impact the overall recovery. Overview Performance Governance Financial Statements & Other Information
17
www.vgmplc.com
Operating Results Year ended Year ended
31 August 2012 31 August 2011 % Variance
Underground Mining
Total Underground Tonnes Mined (Ore, Waste) 477,089 427,688 12% 
Operating Development Metres 15,644 16,834 (7%)
Strike Drive Development Metres 4,034 5,312 (24%)
Capital Development metres 4,975 2,307 116% 
Total Development metres 24,653 24,453 1% 
Sulphide Plant
Sulphide Ore delivered (tonnes) 304,042 336,085 (10%)
Sulphide head grade (grams / tonne) 5.12 5.00 2% 
Oxide Plant
Ore delivered (tonnes) 176,357 160,923 10% 
Oxide head grade (grams / tonne) 2.07 1.39 48% 
Total (Sulphide + Oxide)
Ore processed (tonnes) 479,524 498,123 (4%)
Average ore head grade (grams / tonne) 4.24 3.78 12% 
Total Recovery (%) 78.57% 81.26% (3%)
Gold produced (ounces) 53,152 52,157 2% 
Gold shipped (ounces) 52,616 53,461 (2%)
Cash Costs
Total cash cost / shipped ounce(US$) 1,627 1,349 21% 
Total cash cost / tonne (US$) 179 145 23%  18
Overview
Annual Report and Accounts 2012
www.vgmplc.com
Orebody
Strike drive tunnel 
driven directly
into orebody
(3m x 3m)
Mining from strike drive 
directly into orebody
Strike
Dip@20º
100m
Tunnel 20m 
below orebody
(3m x 3m)
Orebody
Loading chutes enable
direct access to orebody
from footwall tunnel and more 
efficient gold recoveries
(1.8m high rise x1.2m wide)
Dip@20º
Strike
Strike Drive Development Footwall Development
NOT TO SCALE. FOR ILLUSTRATIVE PURPOSES ONLY
Characteristics
•    3m x 3m strike drives follow the plane (strike) of the ore.
•    Substantial dilution: on average, one development metre 
      drills out 24 tonnes of material, of which 2.4 tonnes is gold 
      bearing ore.
•    Operational development is expensed as it is revenue 
      producing. Most mines capitalise underground mine 
      development where the development is for long-term 
      access.
•    Support pillars must be left at either side of drive. As a 
      result, approximately 15% of the ore is left in situ.
Characteristics
•    Easier and quicker to develop than strike drive mining.
•    No low-grade development ore and no need to leave pillars.
•    More of the ore body is mined (approximately 95%).
•    Better drill access for ore body evaluation for short- to 
      medium-term mine planning.
•    Less double handling of the ore.
•    Loading shutes are mined underneath the orebody; mined 
      ore from the stope drops down into the footwall chutes for 
      transport to surface.
•    Higher productivity and extraction of gold. Overview Performance Governance Financial Statements & Other Information
19
www.vgmplc.com
Vatukoula Treatment Plant (“VTP”)
During the twelve months, the VTP
processed 479,524 tonnes of ore which was
a 4% reduction compared to the same
period last year (498,123 tonnes). 
The average grade increased from 3.78
grams of gold per tonne in the twelve
months ending August 2011, to 4.24 grams
of gold per tonne in the twelve months
ending August 2012. This was driven by
higher grades delivered from both
underground and surface mining operations.
Recoveries for the twelve-month were
78.3%. This was lower than the comparable
period last year as a result of the sulphide
nature of the material delivered from the
waste dump located near the Philip Shaft. 
During the year we have been investigating
ways to optimise our processing plant and
increase recoveries. In particular we have
undertaken bacteria leach test work. During
tests at our bacteria leach pilot plant, we
had on average recovery rates of 94% from
concentrate. This would ultimately lead to
an overall recovery of around 85% which is
comparable to the current techniques,
however considerably costs would be saved
in Cyanide consumption.
Cash Costs
As a result of increases in fuel prices and
heavy vehicle consumables our cash cost
per ounce of gold shipped increased to
US$1,627. Overall cash cost per tonne
mined and milled also increased to
US$179 (2011: US$145). Further detail on
the main drivers that led to these increases
are contained within the Financial Review
on pages 22 to 26.
Employees
At the year-end we employed 1,458
individuals as either full-time employees or
as casual labour. Of our workforce 797 are
involved in direct mining operations, and a
further 347 are involved in engineering
support services and 78 are involved in the
processing of ore. The remainder are
involved in administration, finance,
information technology, supply, security,
and operational health and safety. 20
Geological Review
Exploration is a vital part of our long-term
operational sustainability strategy. In the
year under review, Vatukoula announced the
intersection of three new high-grade
mineralised structures, which have been
collectively named the Nielsen Deposit.
Performance
Annual Report and Accounts 2012
www.vgmplc.com
The main objectives of our exploration
and resource definition programme are
to:
1. Identify and detail new areas for mining
and delineate expansion potential 
within the VGM Special Mining Lease 
areas
2. Undertake regional exploration on 
VGM’s Special Prospecting Licenses
This programme is an essential component
in the long-term operational sustainability
strategy at the Vatukoula Gold Mine.  Our
overall objective is to increase life-of-mine
operations and to improve our
understanding of the full extent of gold
mineralisation in the Tavua Caldera, using
modern-day geological and exploration
tools.
The results from these programmes will
guide the company in regards to the
potential expansion of the current
operations. The combination of extensive
historical mining data, minimal exploration
in recent years and modern exploration
techniques provides an exceptional
opportunity to make another discovery of
economic mineralisation in the Tavua
Caldera.
Resource Definition
We are currently undertaking an extensive
diamond drilling campaign designed to
better define our significant resource base,
with the ultimate goal of increasing reserves
at the Vatukoula Gold mine, and placing us
in a much stronger position to plan and
subsequently execute, our mining plans.
Over the course of the financial year three
large capacity diamond drill rigs were
deployed on the surface to undertake
resource definition activities; two of which
are dedicated surface drilling machines,
with the third having both surface and
underground drilling capabilities, giving the
VGM drilling department additional
flexibility in drill site selection. Combined
surface resource definition drilling over the
course of the financial year represented 30
completed holes, totalling 25,415 metres,
the bulk of which targeting the Matanagata
North East, Matanagata East and Prince
William ore bodies.
Matanagata North East: 13 holes were
completed, targeting existing inferred and
unclassified mineral resource, representing
11,041 metres of diamond drilling from
surface. Results from this program will be
evaluated over the coming months and will
be used to build the 2013 resource update.
At this point in time, results are considered
to be broadly in line with expectations, and
have contributed significantly to the
understanding of the behaviour of the
Matanagata North East ore body. At this
stage, only limited surface follow up drilling
on Matanagata North East is planned for
the coming financial year, with significant
surface area of the current resource base
on Matanagata North East having already
been covered within the past 12 months.
Matanagata East: 11 holes completed,
targeting existing inferred and unclassified
mineral resource, representing 9,175 metres
of diamond drilling from surface. As with
the drilling conducted on the Matanagata
North East ore body, results from this drilling Overview Performance Governance Financial Statements & Other Information
21
www.vgmplc.com
will be used to construct the 2013 mineral
resource. Additional drilling has been
planned for the coming year, and a detailed
evaluation of results still remains. However,
initial results suggest additional geological
complexity present within the Matanagata
East ore body, and have broadly returned
results below expectation. Targeted follow
up drilling and detailed desktop evaluation
have been planned for the coming financial
year, although the current expectation is a
reduction in available resource from
Matanagata East when the 2013 resource
update is completed.
Prince William: 6 holes completed,
targeting existing inferred and unclassified
mineral resource, representing 5,200 metres
of surface diamond drilling.  Drilling on
Prince William from surface has been
primarily focussed to the south of Philip
Shaft, in zones proximal to current
underground development. As with the
Matanagata drilling, results will be used to
construct the 2013 resource update, with
initial results returned at this early stage of
the program appearing encouraging, and
broadly in line with expectation. Additional
drilling has been planned for the coming
year and will form the centre point of the
resource definition strategy pushing forward,
given the large resource base to define and
potential for resource upside opportunity.
In addition to the surface resource
definition activities, a number of drilling
programs staged from underground
locations commenced towards the latter
stages of this year, and remain in progress
to date. Of note, a significant program is
currently underway to the north of Philip
Shaft from a dedicated drill platform on 17
level Philip, targeting the Prince William
and 1500 (the hanging wall of Prince
William) ore bodies. Although significant
drilling remains within this zone, results
returned to date appear extremely
encouraging, and indicate resource upside
potential for the 2013 resource update.
This area will be a key focus point of the
resource definition strategy going forward.
Exploration
In the first quarter of the year we
announced the intersection of three new
high-grade mineralised structures at
Vatukoula, subsequently named the
Nielsen Deposit. These mineralised
structures were intersected by three
drill holes. Significant composite
mineralised intersections include:
• 124.7 grams of gold per tonne over 
0.46 metres;
• 33.60 grams of gold per tonne over 
2.86 metres;
• 25.46 grams of gold per tonne over 
1.07 metres; and 
• 39.00 grams of gold per tonne over 
0.48 metres.
Subsequent to the initial discovery we
continued to define the mineralised
structures at higher levels and along strike.
We drilled and completed a further three
holes, which all intersected the mineralised
structures, and confirmed our interpretation
of an open system along strike. 
This discovery is contained on the current
mining leases as well as on the special
prospecting licenses and is located 300
metres north of current mine workings. The
drilling has identified up to four mineralised
structures. Three of these structures are
sub-vertical, which have been intersected
between 300 metres and 700 metres
below surface (11 and 23 level), and the
fourth is a horizontal structure
approximately 700 metres below surface.
The vertical structures are roughly
orientated in a northeast-southwest
direction consistent with some of the local
and regional controls. The horizontal
structure is thought to be a faulted block of
a flatmake structure, which is typically
mined at Vatukoula.
A total of 4,744 metres over eight
exploration holes were drilled during the
year. The majority of this drilling was
undertaken in the first quarter, with all the
rigs being assigned to resource definition
drilling in for the remainder of the year.
Exploration drilling will continue once we
have spare capacity in our current drilling
fleet. This exploration programme will
focus on the above mentioned Nielsen
deposit and the Prince William Deeps,
which has two historic holes with multiple
high-grade mineralised intersections.
During last year's exploration programme,
drilling was completed on two targets with
near-surface potential.
As a result of subsequent interpretative
work we have completed a mineral
resource assessment on one of the targets
and have defined a JORC compliant
Inferred Mineral Resource of 5.1 million
tonnes at 0.9 grams of gold per tonne,
containing 142,000 ounces. 
The resource lies approximately 4 km north
of the VTP processing plant. The
mineralisation strikes northeast over a
length of approximately 1 km, dips to the
south between 20 and 50 degrees, and
extends to a depth of approximately 180
metres. The geology is comprised of
andesite, tuff and recent cover units
overlying the caldera contact breccia.
Basalt units form the footwall to the
caldera contact breccia. Stockwork
mineralisation occurs within the caldera
contact breccias, andesite and tuff units. 22
Financial Review
At £54.9 million, revenues for the year were
15% higher than the previous year’s total of
£47.9 million, bolstered by substantial
increases in gold prices. However, industry-
wide cost increases, coupled with
challenging operational issues at the mine,
resulted in a disappointing overall financial
performance.
Performance
Annual Report and Accounts 2012
www.vgmplc.com
The purpose of this review is to
provide a detailed analysis of the
Group’s consolidated 2012
results and the main factors
affecting the financial
performance. The Financial
Review should be read in
conjunction with the financial
statements and associated
notes on pages 41 and 49.
During the year the Group benefited from
the increased gold price which resulted in
higher turnover. Overall, however the
Group’s financial results were adversely
affected by the industry wide increase in
costs, the continued accelerated
development programme and some
challenging operational issues
encountered during the year. Increased
mining costs per tonne and higher
volumes of material treated resulted in a
loss of £7.1 million and a net operating
loss of £0.07 million. The increased costs
also affected the cash cost per ounce sold,
which increased to US$1,627.
Kiran Morzaria
Finance Director
Year ended Year ended
31 August 2012 31 August 2011
Ore processed (tonnes) 479,524 498,123 
Average ore head grade (grams/tonne) 4.24 3.78
Recovery (%) 78.57% 81.26%
Gold shipped (ounces) 52,616 53,461 
Revenue (£'000) 54,925 47,964 
EBITDA (£'000) (1,547) 2,150 
Cash generated from/(used in) operating activities (£'000) 6,257 (2,312)
Loss (£'000) (7,070) (2,315)
Total cash cost/shipped ounce (US$) 1,627 1,349 
Average realised gold price (£/ounce) 1,044 897 
Average realised gold price (US$/ounce) 1,643 1,439 Overview Performance Governance Financial Statements & Other Information
23
www.vgmplc.com
Revenue
Revenue for the year of £54.9 million was
15% higher than the prior year period of
£47.9 million. The Group’s year-on-year
sales volume decreased by 845 ounces,
which adversely affected revenue.
However the Group benefited from the
large increases in gold prices during the
year. The average realised gold price was
US$1,643 in 2012, compared to US$1,439
per ounce in 2011.
Commodity Prices
Gold prices have a significant impact on the
Group’s revenue, net profits and its ability to
generate cash flows. In 2012 the price of
Gold reached US$1,894 and traded between
a range of US$1,539 and US$1,894 per
ounce. Market gold prices averaged
US$1,672 compared to our average realised
gold price of US$1,643 per ounce.
Cost of Sales and Operating Expenses
increased to £61.5 million in 2012 from
£51.5 million in 2011. A 20% increase in
mining costs elevated the cost of sales
and operating expenses by £6 million.
This was partly offset by a decrease in
the amount of ore and waste mined
which reduced the effect of the elevated
mining costs to £5.6 million on a like for
like basis. The remaining £4.1 million is
attributable to:
• a net increase in unit milling costs, 
which represented £1.1 million in 
additional costs, 
• a  £2.0 million increase in overhead 
and administrative costs,
• an increase in the value of gold 
shipped, which elevated the gold duty 
paid to £0.2 million, 
• higher amortisation and depreciation 
charges of £0.5 million, and
• a decrease in unrealised foreign 
exchange gains on intercompany loans
of £0.3 million.
A breakdown of the key drivers behind the
increase in cost of sales and operating
expenses is shown in the graph above. 
As outlined above the variance in unit
mining costs represented the key driver
to the increase in costs compared to the
previous year. The mining costs totalled
£35.7 million for the year. This
represents an increase of £6 million
from the prior year period (£29.7 million).
The increase in costs can be mainly
attributed to:
• an increase in underground direct unit 
costs of £1.9 million which can be 
mainly attributed to an increased 
market prices and increased usage of 
heavy vehicle tyres, oil and lubrication, 
contractor haulage charges and other 
mining consumables. This was partly 
offset by a 24% decrease in explosive 
costs (10% decrease on a unit cost 
basis)
• a £0.7 million increase in labour costs. 
This is a result of increased labour and 
an implementation of a bonus system
• a £0.4 million increase in engineering 
and higher maintenance costs on 
heavy vehicles,
• a £2.4 million increase in power and 
pumping costs mainly due to higher 
fuel costs experienced during the year
• expensing the gold in circuit drawn 
down in the period, which increased 
compared to the previous year and 
increased costs by £1.8 million
A detailed breakdown of the mining
expenses and the variances year-on-year
for the Group are shown in the table below
and graph overleaf.
Cost of Sales & Operating Expenses Year ended Year ended
31 August 2012 31 August 2011
(£’000) (£’000)
Mining (35,686) (29,731)
Processing (10,281) (9,144)
Overheads (5,917) (4,403)
Gold Duty (1,660) (1,440)
Administrative expenses (2,762) (2,301)
Foreign exchange gains 1,334 1,592 
Depreciation and amortisation (6,551) (6,074)
Total (61,523) (51,501)
65,000
60,000
55,000
50,000
45,000
40,000
51,501
380
(341)
5,575
1,478
1,514
220
458
273
477
61,535
Cost of 
sales and 
operating
Expenses
2011
Variance 
due to
increased
ore and 
waste 
mined
Variance 
due to
change
ore 
processed
Change 
in unit 
mining
costs
Change 
in unit 
processing
costs
Change in
overhead
costs
Change in
gold duty
paid
Change in
admini-
strative
expenses
Foreign
exchange
gains
Depreciation
and
amortisation
Cost of 
sales and 
operating
Expenses
2012
Cost of Sales & Operating Expenses (£’000) 24
Performance
Annual Report and Accounts 2012
www.vgmplc.com
Cash Costs
Cash costs for the year ending 31 August
2012 were US$1,627 per ounce shipped
(2011: US$1,349 per ounce). This increase
in cash costs can mainly be attributed to
the higher unit costs per tonne of ore mined
and lower recovery rates encountered
during the year. The drivers for the
increased unit cost per tonne mined are
explained in the Cost of Sales and
Operating Expenses review.
The table below provides reconciliation
between cost of sales, operating expenses
and cash costs to calculate the cash cost
per ounce shipped.
Administrative Costs
Administrative expenses totalled £2.8
million for the year ended August 2012
which was a 20% increase in costs from
the prior year of £2.3 million. The
administrative expenses are those costs
associated with maintaining the London
office and the administrative expenses in
Fiji not directly attributable to operating
activities. Costs include salaries, office
rent, regulatory, audit, legal fees and
investor related expenses.
Exploration and Evaluation Costs
As highlighted in the geological review, the
Group embarked on a significant drilling
campaign during the year. This was the
first such campaign for almost ten years
and in this year we incurred £4.2 million
compared to the £2.7 million in 2011. All
the exploration and evaluation costs were
capitalised as an Intangible Asset in
accordance with the requirements of IFRS
6 Exploration for and Evaluation of Mineral
Assets.
Mining Expenses Year ended Year ended
31 August 2012 31 August 2011
(£’000) (£’000)
Variable Direct Mining Costs 11,592 9,623
Total Mining Labour Costs 3,349 2,651
Engineering Costs 7,868 8,608
Other Mining Costs 11,455 9,215
Gold stock movement 1,422 (366)
Total mining expenses 35,686 29,731 
Cash Costs Year ended Year ended
31 August 2012 31 August 2011
Mining (£'000) (35,686) (29,731)
Processing (£'000) (10,281) (9,144)
Overheads (£'000) (5,917) (4,403)
Gold Duty (£'000) (1,660) (1,440)
Mine administrative costs (£'000) (829) (244)
Total cash costs of production (54,373) (44,962)
GB£ / US$ foreign exchange rate 0.64 0.62
Gold shipped (ounces) 52,616 53,461 
Tonnes mined and milled 479,524 498,123 
Total cash costs/shipped ounce (US$) 1,627 1,349 
37,000
35,000
33,000
31,000
29,000
27,000
25,000
29,731
380
1,871
679
(1,443)
2,408
(122)
1,801
35,686
381
Mining
Costs
2011
Variance
due change 
in ore 
and waste 
mined
Variance in
under-
ground
direct
unit 
Variance in
under-
ground
mining 
labour cost
Variance in
under-
ground
engineering
cost
Variance in
under-
ground
mining
costs
Under-
ground 
power and 
compressed
air costs
Variance in
surface 
mining 
costs
Gold stock
movement
Mining
Costs
2012
Mining Expenses and the Variances (£’000)
Financial Review continued Overview Performance Governance Financial Statements & Other Information
25
www.vgmplc.com
Taxation and Other Expenses
During the year the Group had a tax credit
of £1.1 million (2011: £1.6 million). This tax
credit arises as a result of the release of
the deferred tax liability. The year on year
changes are predominantly due to a
change in the UK corporation tax rates,
which decreased the tax liability in the
current year.
Other expenses amounted to £1.8 million
in 2012 up from £0.4 million in the previous
year. This increase was primarily due to the
provision of £1 million against prepayments
of more than one year. In addition a charge
of £0.6 million (2011: £0.8 million) was
incurred as a result of the issue of share
options issued to staff and the option
issued to Zhongrun, which expired at the
end of July.
EBITDA
EBITDA for the year ended 31 August 2012
was a loss of £1.6 million compared to a
gain of £2.2 million in the prior year. This
decrease was driven by increases in unit
mining costs; this decrease was partly
offset by increase in the average gold price
achieved during the year.
Reconciliation between net profit for the
period and EBITDA is presented below.
Basic Loss Per Share
Basic loss per share for the year ended 31
August 2012 was 7.81 pence compared to
basic loss per share of 2.76 pence for the
year ended 31 August 2011. This decrease
was driven by the net loss for the year.
EBITDA Year ended Year ended
31 August 2012 31 August 2011
(£’000) (£’000)
Loss for the period (7,070) (2,315)
Less income tax credit 1,075 1,618 
Plus depreciation and amortisation expense (6,551) (6,074)
Less finance income 65 98 
Plus finance expense (111) (107)
EBITDA (1,548) 2,150  26
Performance
Annual Report and Accounts 2012
www.vgmplc.com
Cash Flow
Net cash generated in operating activities
was £6.3 million for year, an increase of
£8.6 million on the prior year (cash used of
£2.3 million). Prior to working capital the
net operating loss was £0.07 million
compared to a net operating income of
£1.6 million in the previous year. This
reduction was due to lower EBITDA. The
net operating income before changes in
working capital was increased by the
changes in working capital which
generated £6.3 million (2011 used £3.9
million). These changes in working capital
were for the majority driven by an increase
in accounts payable. This was in part due
to a change in creditor terms in which we
moved from prepayments to 30-day
payment terms. 
Cash flow used in investing activities
equated to £16.1 million for the year which
represents a 46% increase from the prior
year of £11 million. Of the £16.1 million used
in investing activities, £7.2 million (2011: £6.5
million) was used in the purchase of plant
and equipment and £9.1 million (2011: £4.6
million) was used in underground
development and exploration activities. The
continued investment in the Vatukoula Gold
Mine represents the continued capital
expenditure required to achieve our
production growth strategy and in the long-
term our expansion strategy.
Cash provided by financing activities for
the year ended 31 August 2012 was £5.3
million (2011: £7.3 million). The large
majority (£5.4 million) of this relates to a
placing carried out in April 2012. At 31
August 2012 the Group had cash and cash
equivalents of £2.4 million (2011: £6.9
million). In November 2012, and
subsequent to the year end, the Company
raised a further £6.6 million for the issue of
20 million new ordinary shares. 
Financial Position
Intangible assets increased from £34.1
million in 2011 to £36.8 million in 2012. The
increase is primarily attributable to the
increase in exploration and evaluation costs
which totalled £4.2 million. This increase
was partly offset by the amortisation of the
intangible mining asset recognised on
acquisition of the Vatukoula Gold Mine in
April 2008. The net book value of plant
property equipment and mine properties
development was £37.2 million (2011: £30.5
million). The main capital expenditure
drivers being those outlined in the cash flow
used in the investing activities section
above, these were offset by amortisation
and depreciation charges of £6.6 million
(2011: £6.1 million).
Total assets increased from £87.3 million in
2011 to £90.7 million in 2012.  The
increase was for the large part due to an
increase in intangible and tangible assets.
These increases were offset by lower
inventories, trade and other receivables
and a £4.5 million decrease in cash and
cash equivalents.
Total current liabilities for the year ended
31 August 2012 were £12.3 million, an
increase of £5.8 million from the balance of
£6.5 million in 2011. This increase is
primarily driven by the increase in trade
creditors as outlined in the cash flow
section above. Non-current liabilities
decreased to £10.4 million from £12.3
million in the previous year. This decrease
is mainly due to the £1.0 million release of
the deferred tax liability recognised on the
acquisition of the Vatukoula Gold Mine in
April 2008.
Kiran Morzaria
Finance Director
9 January 2013
Non-IFRS Measures
The Group has identified certain measures in this report that are not measures as defined under IFRS. Non-IFRS financial measures disclosed by the directors and
management are provided to shareholders as additional information in order to provide them with an alternative method of assessing the Group’s financial
condition and operating results. These measures are not in accordance with, or a substitute for IFRS, and may be different from or inconsistent with non-IFRS
measures used by other companies. These measures are explained below.
Average realised gold price is a non-IFRS financial measure and is calculated by dividing the total revenue for the year by the total ounces sold during the year
and converting the GB£ value to US$ at the average foreign exchange rate over the year.
EBITDA is a non-IFRS measure. The group calculates EBITDA as (loss)/profit for the period excluding:
• Income tax credits or expense
• Finance expense
• Finance income
• Depreciation and amortisation charges; and
• Goodwill impairment charges
EBITDA is intended to provide additional information to investors and analysts. It does not have a standard definition under IFRS and other companies may
calculate EBITDA differently. Refer to page 25 as part of the financial review section for a reconciliation of profit to EBITDA.  EBITDA should not be considered a
substitute or in isolation for measures of performance as prepared in accordance with IFRS, as it excludes the impact of cash costs of financing activities and
taxes and the changes of working capital balances,
Cash cost per ounce sold / per tonne mined and milled are non-IFRS financial measures. Cash costs include all costs associated with mining and processing
the unit of measure, inclusive of all costs absorbed into inventory, as well as royalties, production taxes and mine overheads/administrative costs. The cash costs
exclude foreign exchange gains, depreciation and amortisation expenses, impairment charges, inventory obsolesces, rehabilitation charges, doubtful debts and
share based payments. These cash costs are aggregated and divided by either ounces of gold shipped or the tonnes mined and milled to reach the relevant non-
IFRS financial measure.
Operating cash flow per share is a non-IFRS financial measure and is calculated by dividing the Net cash (used) / generated in operating activities by the
weighted average number of Ordinary Shares in issue.
Financial Review continued Overview Performance Governance Financial Statements & Other Information
27
www.vgmplc.com
Community Relations
The Vatukoula Gold Mine has under
previous owners had some issues with its
community relations. Over the course of
2012 there has been an improvement in
the relationships between our Company
and our local stakeholders. The key areas
of focus for this improvement have been:
a) regular engagement with the local 
communities, allowing open and frank 
discussions and respecting  
stakeholders concerns,
b) maximising the communities’ 
opportunity to benefit from employment 
and local procurement; and
c) developing a long-term plan to assist 
local communities to pursue their own 
socio-economic priorities.
Some of the main material contributions we
make to the local community are; the
provision of subsidised power and water,
sponsorship of local sporting clubs and
events; renovation or construction of staff
housing and the contribution of F$6 million for
the establishment of the Vatukoula Social
Assistance Trust Fund (“VSATF”).
Management expects that the
commencement of the provision of
assistance from the Vatukoula Social
Assistance Trust Fund is imminent, the Trust
implementation documents having been
approved by the Cabinet of the Government
of Fiji. The trustees are expected to
administer the F$6million dollars of
assistance contributed by the Group for the
benefit of those employees still redundant
after the former owners of the Vatukoula Gold
Mine ceased operations in December 2006. 
Under principles stipulated by VGM, it is
intended that the VSATF function as a model
for current and future mining operations
throughout Fiji in terms of planning for the
sustainable livelihoods of mine workers after
mine closure or downsizing.
Health and Safety
Safety is a top priority for mine
management.  During the year under review
we experienced a Lost Time Injury
Frequency Rate (“LTIFR”) of 14.8 per 1
million man hours. To improve on the mine’s
safety performance a number of initiatives
are underway. A dedicated manager has
been appointed to lead the safety, health,
environment and training teams. Dedicated
safety and training superintendents are in
the process of being locally recruited. We are
working with Australia based external
training providers for the provision of
specialised training materials and software
to recognised standards and a review of all
policies, procedures and standards is in
progress on the mine. The mine has also
introduced a bonus scheme for local
employees, a major component of which is
safety performance.
Safety in the workplace is regarded as a top
priority at all times. We insist that all our
employees work according to stringent
safety practices and we are all working
toward our target of a zero LTIFR.
Environment
Over the year we have developed a
comprehensive environmental policy that is
to be implemented across our operation. A
study by an independent engineer reviewed
our policies and procedures and carried out
a gap analysis against relevant local
legislation, the IFC Performance Standards,
IFC EHS General Guidelines and the IFC
Mining Sector Guidelines. Although the
Company was either Compliant or Materially
Complaint with these standards, it has
identified areas for improvement in the
coming year. 
One of the key consumables at the mine is
energy which currently is provided by fossil
fuels, andwe have been examining
opportunities to reduce our reliance on
diesel power generation. In particular we are
looking to establish an off-take agreement or
joint venture with the FSC. 
Corporate Responsibility
We believe that to operate effectively and
profitably VGM needs to establish mutually
beneficial relationships within the community
that we operate. We need to maintain these
relationships to help us ensure a stable
operating environment and allow access to
our exploration assets. 28
Performance
Annual Report and Accounts 2012
www.vgmplc.com
Reserve and resource estimates
The Group’s mineral reserves and
resources are estimates based on
several assumptions, including
geological, mining, metallurgical and
other technical factors. There can be
no assurance that the anticipated
tonnages or grades will be achieved.
The Group continually monitors and
reconciles the production targets
and mine plans against mineral
reserve and resource figures. Our
mineral reserve and resources are
updated annually and are prepared
to the Australasian Code for
Reporting of Exploration Results,
Mineral Resources and Ore
Reserves.
High The Group’s Mineral Reserve and
Resource statement are set out on
pages 31 to 33.
Risk Management
Principal risks and uncertainties
The Board annually reviews the key risks facing the business and
assesses the controls for managing these risks, where possible. The
principal risks and uncertainties facing the Group are as follows:
Strategic Risk
Risk Mitigation/Comment Potential Impact Further Information
Single asset risk
All of the Group’s revenue is derived
from production at the Vatukoula
Gold Mine in Fiji. In order to ensure
continued production and expansion
to the current operations, the
Company need to build in additional
capacity and develop further growth
opportunities.
The Group’s management has
implemented an accelerated
development programme to develop
spare capacity in the underground
mining infrastructure and in addition
is assessing the wider prospecting
licenses it holds. The Group will also
asses other opportunities outside of
Fiji if they are presented to the
Group.
High A review of our operational and
exploration activities and potential
organic growth opportunities are set
out in the Operational and
Geological Review on pages 16 to
19 and pages 20 to 21.
Financial Risks
Risk Mitigation/Comment Potential Impact Further Information
Commodity prices
The Group’s financial performance is
dependent on the price of gold and
diesel. Adverse movements in gold
price and diesel price movements
could have a material impact on the
Group’s results and operations.
The executive board constantly
monitors the commodity prices and
its potential effects on operating
cash flow and profitability. The
Group’s strategy, however, is to
provide maximum exposure to Gold
hence no hedging strategies have
been employed. Long-term diesel
hedging will come from the biomass
power station fixing our largest cost.
High Further information is set out in the
Market Review on pages 12 to 13
and the Financial Review on pages
22 to 26.
Costs and capital expenditure
The Group operates in an industry
that has experienced shortages in
consumables and capital equipment
and as such prices can vary
significantly year on year. These
variations may adversely affect
operating cash flow and the Group’s
financial position.
The Group’s management is
constantly reviewing variation in
both activity costs and the
consumables driving them. We will
seek to further mitigate these costs
by entering into long-term supply
contract where possible. In addition
management carry out cash flow
analysis and sensitivities to mitigate
liquidity risk.
Medium Further information is set out in the
Financial Review on pages 22 to 26. Overview Performance Governance Financial Statements & Other Information
29
www.vgmplc.com
Operational Risks
Risk Mitigation/Comment Potential Impact Further Information
Business interruption
Assets used in operations may
break down and current insurance
policies may not cover against all
forms of risks due to certain
exclusions.
The Group has implemented a
maintenance system which should
go some way to mitigate these risks.
In addition we are carrying out a full
risk assessment on this issue, and
will investigate if insuring against
some of these risks will be
economic.
High Further information is available in the
Operations review on pages 16 to
19.
Reserve and resource depletion
The Group’s future profitability and
operating margins depend upon its
ability to replenish reserves with
geological characteristics to enable
mining at competitive costs.
The Group has identified key areas
of resource and reserve definition
and further exploration areas within
its current licenses. It has begun
both programmes.
High Further information is available in the
Geological Review on pages 20 to
21.
Personnel Risks
Risk Mitigation/Comment Potential Impact Further Information
Loss of key senior management and
personnel, in particular highly skilled
engineers and geologists.
The Group seeks to provide
competitive compensation
arrangements. Inclusive of options
packages.
Medium Not Applicable
The lack of availability of suitably
skilled individuals in the vicinity of
the Group’s operations.
The Group recruits internationally,
and as above provide competitive
compensation packages.
Medium Not Applicable
Failure to maintain good labour
relations with workers and /or unions
may result in work slowdown,
stoppage or strike.
A labour relations officer has been
appointed and ensures employees
needs and requirements are heard
and if appropriate, met. The Group
also has an open dialogue with key
stakeholders inclusive of worker
unions.
High Not Applicable 30
Performance
Annual Report and Accounts 2012
www.vgmplc.com
Risk Management continued
Health and safety
Group employees who work in the
mines may be exposed to health
and safety risks. Failure to manage
these risks may results in a work
slowdown, stoppage or strike and/or
may damage the reputation of the
Group and hence its ability to
operate.
The Group takes the Health and
Safety of employees and contractors
very seriously, and monitors, reviews
and improves health and safety 
initiatives on a regular basis.
High Further information is available in the
Corporate Responsibility section
page 27.
Personnel Risks continued
Risk Mitigation/Comment Potential Impact Further Information
Environmental
The Group may be liable for losses
arising from environmental hazards
associated with the Group’s
activities and production methods,
or may be required to undertake
extensive remedial clean-up action
or pay for governmental remedial
clean-up actions.
The Group has an environmental
department with an allocated budget
for environmental purposes. The
current polices have been
recommended by an external third
party and their implementation will
be audited. Water quality is
monitored on a regular basis, and
we will monitor air quality in the near
future.
High Further information is available in the
Corporate Responsibility section  on
page 27.
External Risks
Risk Mitigation/Comment Potential Impact Further Information
Future changes to the environment,
which may include increases in
taxes and / or royalties may result in
additional expense, restrictions on
operations and delay the
development of future projects.
We liaise with the government and
relevant departments in Fiji on many
aspects of our day to day operations
and are proactive in our approach. In
addition, we monitor the political
landscape to see if there are likely
changes in policy that are likely to
impact the Group’s operations.
Medium Not Applicable
Community relations
Under previous ownership the
Group’s operation in Fiji has
historically received criticisms from
external independent organisations.
The Group has a community
relations department that maintains
an on-going dialogue with local
communities. Currently, we are
reviewing all our community
programmes. We expect from this
review to develop a long term
sustainable development
programme.
High Further information is available in the
Corporate Responsibility section on
page 27.
Political, legal and regulatory developments Overview Performance Governance Financial Statements & Other Information
31
www.vgmplc.com
Mineral Resource Statement
The Vatukoula Gold Mine (VGM) Mineral
Resource estimate is classified and
reported in Table 1 below, in accordance
with the 2004 JORC Code.
1
The 2012 Mineral Resource estimate is
compared to the 2011 Mineral Resource in
Table 2.
Overall, the Mineral Resource has
decreased by 50,000 ounces compared
to 2011 Mineral Resources. These
changes are attributable to:
• reductions due to depletion of the 
models between faces – 80,000 
ounces of gold.
• reductions due to reinterpretation of 
previously modelled mineralised 
structures – 110,000 ounces of gold.
• inclusion of the Waikatakata Mineral 
Resource of 140,000 ounces.
Underground Mineral Resource
AMC Consultants Pty Ltd (AMC)
completed a Mineral Resource estimate for
the VGM using geological and assay data
available at 31 May 2012. The data
supplied by VGM allowed AMC to
generate a constrained grade model and
estimate a Mineral Resource. AMC
estimated the Mineral Resources using the
end of July 2012 surveyed face positions.
The Mineral Resources at 31 August 2012
were estimated by subtracting the
production for the month of August 2012.
The VGM Mineral Resource estimate is
classified into Measured, Indicated, and
Inferred Mineral Resources based on the
current drillhole spacing, quality of the
drilling information and confidence in the
Reserves and Resources
We believe that to operate effectively and
profitably VGM needs to establish mutually
beneficial relationships within the
community that we operate. 
Table 1: VGM Mineral Resources at 31 August 2012
Measured Indicated Inferred
Contained Contained Contained
Mineral Tonnes Grade Gold Tonnes Grade Gold Tonnes Grade Gold
Resource (Mt) (g/t Au) (Moz) (Mt) (g/t Au) (Moz) (Mt) (g/t Au) (Moz)
Underground 3.2 12.9 1.3 3.7 10.3 1.2 4.0 9.7 1.3
Waikatakata - - - - - - 5.1 0.9 0.1
Tailings 4.5 1.5 0.2 0.7 1.3 0.03 - - -
Total 7.7 6.2 1.5 4.4 8.9 1.2 9.1 4.8 1.4
Note: Values are rounded and may not add correctly in this table.
Table 2: Comparison with 2011 Mineral Resources 
2012 2011
Contained Contained 
Tonnes Grade Gold Tonnes Grade Gold
Classification (Mt) (g/t Au) (Moz) (Mt) (g/t Au) (Moz)
Measured Resource 7.7 6.2 1.5 7.4 6.0 1.4
Indicated Resource 4.4 8.9 1.2 4.4 8.8 1.3
Inferred Resource 9.1 4.8 1.4 4.6 9.7 1.5
Total Mineral Resource 21.2 6.2 4.2 16.4 8.0 4.2
1
Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves, The JORC Code 2004 Edition, Effective December 2004, Prepared by the Joint Ore 
Reserves Committee of the Australasian Institute of Mining and Metallurgy, Australian Institute of Geoscientists and Minerals Council of Australia (JORC). 32
Performance
Annual Report and Accounts 2012
www.vgmplc.com
geological controls on the gold
mineralisation and grade continuity. The
Mineral Resource estimate includes
Measured and Indicated Mineral Resources
that will convert to Ore Reserves on
application of modifying factors.
The information in this statement of
underground Mineral Resources is based
on information compiled by Mr John
Tyrrell, who is a Member of the
Australasian Institute of Mining and
Metallurgy and a full-time employee of
AMC Consultants Pty Ltd. Mr Tyrrell has
sufficient relevant experience to be a
Competent Person as defined by the
JORC Code. Mr Tyrrell consents to the
inclusion of this information in the form
and context in which it appears. Mineral
Resources listed as being prepared by
AMC were estimated under the direct
supervision of Mr Tyrrell.
The following notes highlight
assumptions used to generate the VGM
underground Mineral Resource estimate:
• The Mineral Resource models use 
geological and assay data available at 
31 May 2012.
• Samples were prepared and analysed 
at the on-site Vatukoula laboratory 
using fire assay using a 25 g charge 
with atomic absorption spectrometry 
(AAS) finish.
• The mineralised envelope was defined 
using geological logging and assay 
information from diamond drillholes. A 
grade variable (the product of the 
horizontal or vertical intercept width 
and grade expressed as m.g/t Au) was 
used to interpret the mineralised 
envelope using a nominal cut-off of 
1m.g/t Au.
• Extrapolation of the interpreted 
mineralised structures was limited to 
50 m between section lines and 25 m 
at the end of each section.
• The estimation method used 3D 
wireframe and block modelling 
projected to a 2D plane, with ordinary 
kriging interpolation. The grade 
variable was estimated using 
parameters derived from modelled 
semi-variograms and geostatistical 
analysis. The intercept width was 
estimated separately and the grade 
back-calculated. Top-cuts were 
applied to the grade variable to limit 
the influence of outlier values. 
• In situ density data was available from 
drillhole sampling. Densities were 
assigned to each of the modelled 
structures based on the averages from 
all available samples.
• A cutoff of 4 m.g/t Au and a gold grade
cut-off 2 g/t Au were applied to the r
resource models to obtain the reported
Mineral Resources.
• The Mineral Resource models were 
depleted for mining to 31 August 2012,
using surveyed mine outlines to 31 July
2012 and production figures for August
2012.
• The metallurgical response for the 
orebodies is well understood from 
actual production. No recovery factors 
were applied to the Mineral Resource 
estimate.
Waikatakata Mineral Resource
The information for the Waikatakata
Mineral Resource is based on information
compiled by Mrs Rachael Birch, who is a
Member of the Australasian Institute of
Mining and Metallurgy and a full-time
employee of AMC Consultants Pty Ltd.
Mrs Birch has sufficient relevant
experience to be a Competent Person as
defined by the JORC Code. Mrs Birch
consents to the inclusion of this
information in the form and context in
which it appears. No previous Mineral
Resource has been reported for
Waikatakata.
The following notes highlights
assumptions used to generate the
Waikatakata Mineral Resource estimate:
• The Waikatakata Mineral Resource 
estimate was completed in October 
2011 using 11 diamond drillholes and 
133 reverse circulation drillholes for a 
total drilled length of 4,338 m. A twin 
drillhole programme was completed in 
2011. Four twin diamond drillholes 
were drilled into the broader 
Waikatakata area
• The Mineral Resource estimate is 
based on the interpretation of 
mineralised zones using a nominal 
lower gold cut-off grade of 0.3 g/t Au. 
The interpretation was constrained 
within the contact breccia, andesite, 
and tuff units and between 8,400 m E 
and 9,500 m E
• All twin drill core samples were 
prepared and assayed at the VGM site 
laboratory. All samples were analysed 
for gold by fire assay on a 50 g charge 
with AAS finish
• Drillhole samples were composited to a
dominant length of 1 m. Residual 
composites (less than 1 m) were 
retained for estimation
• A global bulk density value of 2.5 t/m3 
was assigned to the model
• Estimation of gold was completed 
using ordinary kriging with estimation 
parameters derived from modelled 
semi-variograms
Reserves and Resources continued Overview Performance Governance Financial Statements & Other Information
33
www.vgmplc.com
Tailings Mineral Resource
The Tailings Mineral Resource estimate is an
estimate developed by CSA Global (CSA). In
March 2008, CSA compiled an independent
Competent Persons Report titled "An
Independent Competent Persons report for
River Diamonds Plc. covering the Vatukoula
Gold Mine in Fiji, the Panguma Prospect in
Sierra Leone and the Rio Novo Gold
Prospect in Brazil" (CSA CPR), for inclusion
in the application for readmission to trading
on the Alternative Investment Market (AIM)
of the London Stock Exchange.
The CSA CPR reported the 2006 Mineral
Resources, including the Tailings Mineral
Resource, according to the JORC Code.
No further estimates or data are available
at the time of this report. AMC cannot
verify the estimate and allocate a low
reliability to the estimate.
The Tailings Mineral Resource is 0.2 Moz,
and approximately 10% of the total
Measured and Indicated Mineral
Resources at VGM. AMC considers that
the Tailings Mineral Resource may provide
an opportunity to improve the output of the
operation, but is not material to the total
Mineral Resources. VGM plans to review
the tailings resource in conjunction with
the results of exploration programmes to
determine the preferred means to extract
the contained gold. VGM production plans
do not include the Tailings Mineral
Resource pending this review and
conversion of Mineral Resources to Ore
Reserves.
Ore Reserve Statement
The 2012 Ore Reserve estimate is based
on the 2011 Mineral Resource estimate.
Based on the mine design generated by
AMC and within the Measured and
Indicated Mineral Resource portions of the
underground VGM deposits, AMC
estimated a Proved and Probable Ore
Reserve of 2.7 Mt at 7.9 g/t Au for
contained gold of 0.70 Moz using a gold
price of US$1400/oz with a 4.48 g/t Au
cut-off.
The method used to determine the 2012
Ore Reserve estimate required stopes to
be split into panels to allow some stopes
to be partially mined, such that only the
panels with an ore reserve classification
were considered. Access development to
the ore reserve stopes was added to the
mine plan if the panel met the Ore Reserve
classification. The VGM Ore Reserve
estimate is classified and reported in Table
3 in accordance with the JORC Code.
The reduction in 2012 Ore Reserve
estimate from the 2011 Ore Reserve
estimate is mainly attributable to mining
depletion over the past year.
Mineral Resources were converted to Ore
Reserves recognising the level of
confidence in the Mineral Resource
estimate and reflecting any modifying
factors. Ore Reserves are included in the
Mineral Resources estimate.
The metal prices, grades, recoveries
and costs were used to identify
mineable blocks to be included in the
Ore Reserve estimate. The metal prices
and exchange rate used in the Ore
Reserve estimate are:
• Gold: US$1400/oz
• Exchange Rate: F$1.00 = US$0.54.
The underground Ore Reserve estimates
comprise the portions of the Measured and
Indicated Mineral Resources for which the
appropriate mine planning has been
undertaken and can be economically
mined. The Ore Reserves are derived from
the Mineral Resources by application of
cut-off grades, stoping heights, dilution
factors and extraction ratio.
The Proved Ore Reserve estimate is based
on Mineral Resources classified as
Measured Resource, while the Probable
Ore Reserve estimate is based on Mineral
Resources classified as Indicated
Resource after consideration of all mining,
metallurgical, social, environmental,
statutory, and financial aspects of the
project.
The Ore Reserve statement is based on
information compiled by Mr Kevin Oborne
under the direct supervision of Mr David
Lee. Mr Kevin Oborne is a Member of the
Australasian Institute of Mining and
Metallurgy and Mr Lee is a Fellow of the
Australasian Institute of Mining and
Metallurgy and both are full-time
employees of AMC Consultants Pty Ltd.
Mr Lee has sufficient relevant experience
to be a Competent Person as defined by
the JORC Code.
The following notes highlight
assumptions used to estimate the VGM
Ore Reserve estimate:
• Cut-off grade of 4.48 g/t Au.
• Minimum stope mining width of 1.18 m.
• 10% stope and development mining 
dilution.
• 95% mining recovery in development 
headings.
• 85% mining recovery in stopes.
AMC estimated the Ore Reserves using the
end of August 2012 surveyed face
positions.
Table 3: VGM Ore Reserves at 31 August 2012 compared with 2011 Ore Reserves
2012 2011
Contained Contained 
Tonnes Grade Gold Tonnes Grade Gold
Classification (Mt) (g/t Au) (Moz) (Mt) (g/t Au) (Moz)
Proved Ore Reserve 0.6 9.7 0.18 0.6 9.4 0.19
Probable Ore Reserve 2.2 7.5 0.52 2.3 7.5 0.55
Total Ore Reserve 2.8 7.9 0.70 2.9 7.9 0.74
Note: Values are rounded and may not add correctly in this table. 34
Board of Directors
Governance
Annual Report and Accounts 2012
www.vgmplc.com
I C Orr-Ewing
Non-Executive Chairman, age 70
Mr Orr-Ewing has been involved in the natural resources sector for 37 years. His experience covers both the oil and mining industries
and he has been a director of UK and Canadian oil companies and Irish and Canadian mining companies. Currently Mr Orr-Ewing also
advises a fund management company on its natural resources portfolios. He began his career as an investment manager for the Shell
Pension Fund in London after completing his education as a Chartered Accountant.  He was deeply involved in the oil industry from
1971 through to 1987 with numerous companies in the North Sea, Libya, Nigeria and Algeria. 
D K Paxton
Chief Executive Officer (CEO) age 58
Mr Paxton is a professional engineer with over 36 years’ experience in the mining industry, starting with mine production at Gold Fields
of South Africa, and then time at their head office and culminating with 24 years as a mining analyst. As a mining analyst he has worked
for a number of Canadian and UK stockbrokers.
K C Morzaria
Finance Director, age 38
Mr Morzaria holds a Bachelor of Engineering (Industrial Geology) from the Camborne School of Mines and an MBA (Finance) from CASS
Business School.  He has 13 years of experience in the mineral resource industry covering gold and diamonds.  Mr Morzaria spent his
first four years in exploration, mining and civil engineering working for Highland Gold, Firestone Diamonds and CL Associates.  He was
appointed Finance Director of Vatukoula Gold Mines Plc. in 2004.
D A Lenigas
Non-Executive Director, age 51 (Resigned in January 2012)
Mr Lenigas has over 25 years of experience in the gold, diamond, coal and base metals industries. David is a Mining Engineer with a
Bachelor of Applied Science (Mining Engineering - with distinction). He is the Chairman of. Leni Gas & Oil Plc., Solo Oil Plc., and is also
a non-executive director of Rare Earth Minerals Plc.
J I Stalker
Non-Executive Director, age 61 (Resigned in January 2013)
Mr Stalker is the Chief Executive Officer of Brazilian Gold Corporation, a Toronto-listed gold mining company. He has over thirty years of
development and operational mining experience in Europe, Africa and Australia. He has worked his way up from operational roles in the
base and precious metals arenas to executive positions in some of the largest mining companies in the world. Mr. Stalker was CEO of
Berkeley Resources Ltd, CEO of UraMin Inc. ("UraMin"), and a Vice President of Gold Fields Ltd., the fourth largest gold producer in the
world at the time. 
J F Kearney
Non-Executive Director, age 61
Mr Kearney is the Chairman and President of Canadian Zinc Corporation with over 30 years’ experience in the mining industry
worldwide. With degrees in law, economics and business administration, he has a strong background in corporate development, finance
and managing public companies, primarily in the mining field.
J A MacPherson
Non-Executive Director, age 70
Mr MacPherson is a Director of and founding chairman of Canadian Zinc Corporation. He has been active in public markets, corporate
finance and corporate development for over 30 years. During this time he has led the strategic development of several successful
ventures, primarily in the fields of mining and oil and gas. Throughout his career he has served as director of many private and public
corporations listed on the Toronto, AMEX and London Stock Exchanges. Overview Performance Governance Financial Statements & Other Information
35
www.vgmplc.com
The directors are pleased to present this year’s annual report together with the consolidated and company financial statements for the
year ended 31 August 2012.
Principal activities
The principal activity of the Group was the operation of the Vatukoula Gold Mine in Fiji as described on page 3 of the Business Review.
The principal activity of the Company was that of a holding Company for its subsidiary undertakings, which are set out in Note 16 of the
financial statements.
Results and dividends
The loss on ordinary activities of the Group for the year ended 31 August 2012 after taxation was £7.1 million (2011: loss of £2.3 million).
The directors do not recommend the payment of a dividend (2011: nil).
Business review
A review of the current and future development of the Group’s business is given in the business review section of this report on pages 3
to 40.
Given the nature of the business and industry the key performance indicators are based on financial and operational objectives set at
the beginning of the year.  Performance in relation to these is highlighted on pages 14 and 15.
The Business Review sets out a comprehensive review of the development and performance of VGM's business for the year ended 31
August 2012 and the future developments. The Business Review is set out on pages 3 to 40 of this annual report. All information
detailed in these pages is incorporated by reference into this Directors' Report and is deemed to form part of this Directors' Report.
Corporate Governance Statement
The corporate governance statement set out on page 39 is incorporated by reference into this Directors' Report and is deemed to form
part of this Directors' Report.
Post balance sheet events
At the date these financial statements were approved, being 28 December 2012, the directors were not aware of any significant post
balance sheet events other than those set out in Note 33 of the financial statements.  
Future developments
A review of our future developments is given in the Review by the Chief Executive Officer on pages 10 to 11. 
Financial risk management 
The Group’s operations expose it to financial risks that include liquidity risk, interest rate and foreign exchange risk. The Group does not
use derivative financial instruments to manage any of these risks nor is hedge accounting applied.  
The Group depends on the Vatukoula Gold Mine for a substantial portion of its revenue and cash flow and, therefore, the Group’s
business will be harmed if VGM’s revenues are adversely affected. A review of this risk is given in our Risk Management section on
pages 28 to 30. 
Given the size of the Group, the directors have not delegated the responsibility of monitoring financial risk management to a sub-
committee of the board.  The Group’s finance department implements the policies set by the board of directors. Further details of the
Group’s exposure to risks arising from financial instruments held are provided in note 26.
Liquidity risk
The Group actively manages its working finance to ensure the Group has sufficient funds for current operations. As referred to in Note 3
of the financial statements, it is for this reason that the directors believe it is appropriate to prepare the financial statements on a going
concern basis.
Interest rate cash flow risk
Interest bearing assets are only cash balances that earn interest at a floating rate. The Group does not have any variable rate debt and
therefore it is not exposed to interest rate cash flow risk on its debt.
Foreign exchange risk
The Group operates in Fiji and Brazil.  The board has assessed its exposure, the details of which are provided in note 26(i).  This
situation is monitored on a regular basis, and as such the directors do not currently consider it necessary to enter into forward exchange
contracts.
Directors’ Report 36
Directors’ Report continued
Governance
Annual Report and Accounts 2012
www.vgmplc.com
Credit risk
Credit risk is the risk of financial loss to the Group if a customer or counter party to a financial instrument, fails to meet its contractual
obligations, and arises principally from the Group’s receivables from customers.  The Group has credit risk management policies in
place and exposures to credit risk are monitored on an ongoing basis.  Management generally adopts conservative strategies and a
tight control on credit policy.
Directors’ insurance
The Company has taken out an insurance policy to indemnify the directors and officers of the Company against liability when acting for
the Group.
Directors
The following directors have held office during the year:
I C Orr-Ewing
D K Paxton
K C Morzaria
D A Lenigas (Resigned 4th January 2012)
J I Stalker (Resigned 2nd January 2013)
J F Kearney
J A MacPherson
Directors’ interests
Directors’ interests, including family interests in the ordinary shares, were as follows:
Beneficial Holding 31 August 2012 31 August 2011
I C Orr-Ewing* 522,683 517,774
D K Paxton 175,000 135,000
K Morzaria 47,280 40,940
D A Lenigas (Resigned 4th January 2012) 20,000 20,000
J I Stalker (Resigned 2nd January 2013) - -
J F Kearney --
J A MacPherson --
* of which 211,107 (2011: 211,107) are held beneficially.
Directors also hold options over ordinary shares as follows:
Number of Options 31 August 2012 31 August 2011
I C Orr-Ewing 300,000 300,000
D K Paxton 1,000,000 1,000,000
K C Morzaria 700,000 700,000
D A Lenigas  (Resigned 4th January 2012) 700,000 700,000
J I Stalker  (Resigned 2nd January 2013) 700,000 700,000
J F Kearney 400,000 400,000
J A MacPherson 400,000 400,000
Political and charitable donations
The Group made no charitable or political donations during the year (2011: nil).  Overview Performance Governance Financial Statements & Other Information
37
www.vgmplc.com
Substantial shareholdings
As at 20 November 2012 the following had notified the Company of disclosable interests of 3% or more in the nominal value of
the Company’s shares:
Ordinary shares of 5p %
HSBC Global Custody Nominee (UK) 29,000,000 24.67%
*Canaccord Nominees Limited 12,673,380 10.78%
Roy Nominees Limited 7,811,344 6.64%
Vidacos Nominees Limited 5,830,600 4.96%
BNY Mellon Nominees Limited 5,060,575 4.30%
Ferlim Nominees Limited 4,395,371 3.74%
Total 64,771,270 55.09%
* These shares are held by Canaccord Nominees Limited on behalf of and for the benefit of Canadian Zinc Corporation.
Policy on payment of creditors
The Company seeks to maintain good terms with all of its trading partners.  It does not follow any specific code or standard on payment
practice. However, it is the company's policy to agree appropriate terms and conditions for its transactions with suppliers, to ensure that
the suppliers are made aware of those terms and, provided the supplier has complied with its obligations, to abide by the terms of
payment agreed. In the current year the company moved to a 30-day payment terms, from prepayment terms in 2011. Trade creditor
days of the Group for the year ended 31 August 2012 were 69 days (2011: 33 days).
Related Party Transactions
Details of related party transactions during the year are set out at note 28 to the financial statements.
Going concern
After making enquiries, the directors have formed a judgement at the time of approving the financial statements, that there is a
reasonable expectation that the company and the group as a whole have adequate resources to continue in operational existence for
the foreseeable future.  For this reason the directors have adopted the going concern basis in preparing the financial statements.
Further details are provided in note 3.
Auditors
In accordance with Section 489 of the Companies Act 2006, a resolution proposing that Mazars LLP be re-appointed will be put to the
forthcoming Annual General Meeting.
Directors’ responsibilities in the preparation of financial statements
The directors are responsible for preparing the annual report and the financial statements in accordance with EU endorsed
International Financial Reporting Standards (‘IFRS’), interpretations of IFRS Interpretations Committee and those parts of the
Companies Act 2006 applicable to companies reporting under IFRS. Company law requires directors to prepare financial
statements for each financial period which give a true and fair view of the state of affairs of the Company and the Group and of
the profit and loss for that period. In preparing the financial statements, directors are required to:
• select suitable accounting policies and then apply them consistently;
• make judgements and estimates that are reasonable, comparable, understandable and prudent;
• ensure the financial statements comply with IFRS;
• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in 
business.
The directors are responsible for keeping proper books of account which disclose with reasonable accuracy at any time the financial
position of the Company and the Group and to enable them to ensure that the financial statements comply with the Companies Act
2006. The directors are also responsible for safeguarding the assets of the Group and hence for taking reasonable steps for the
prevention and detection of fraud and other irregularities.
The directors are also responsible for the maintenance and integrity of the Group’s website on the internet. However, information is
accessible in many different countries where legislation governing preparation and documentation of financial statements may differ
from that applicable in the United Kingdom. 38
Directors’ Report continued
Governance
Annual Report and Accounts 2012
www.vgmplc.com
Disclosure of information to auditors
So far as each person who was a director at the date of approving the report is aware, all relevant audit information, being information
needed by the auditor in connection with preparing the report, has been provided or made available to the auditor. Having made
enquiries of fellow directors, each director has taken all the steps that he is obliged to have taken as a director in order to have made
himself aware of any relevant audit information and to establish that the company’s auditors are aware of that information.
K C Morzaria
Director
9 January 2013 Overview Performance Governance Financial Statements & Other Information
39
www.vgmplc.com
Compliance with UK Corporate Governance Code 
The directors recognise the value of the Combined Code on Corporate Governance that was issued in September 2012 by the Financial
Reporting Council and whilst under AIM rules full compliance is not required, the directors believe that the Company applies the Main
Principles insofar as is practicable and appropriate for a public company of its size.
Outlined below is a summary of how the company applies the Main Principles set out in the UK Corporate Governance Code.
Board of Directors
The board of directors comprises two executive directors, and four non-executive directors, one of whom is the Chairman. The directors
are of the opinion that the board comprises a suitable balance and that the recommendations of the Combined Code have been
implemented to an appropriate level.  The board, through the Chief Executive Officer and the Finance Director in particular, maintains
regular contact with its advisers and public relations consultants in order to ensure that the board develops an understanding of the
views of major shareholders about the company.
Board Meetings
In addition to ad hoc meetings arranged to discuss particular transactions and events and the AGM, the full board met seven times
during the year ending 31 August 2012.  The board is responsible for formulating, reviewing and approving the Company's strategy,
financial activities and operating performance.  Day to day management is devolved to the executive directors who are charged with
consulting the board on all significant financial and operational matters.  Consequently decisions are made promptly and following
consultation amongst the directors concerned where necessary and appropriate.
All necessary information is supplied to the directors on a timely basis to enable them to discharge their duties effectively, and all
directors have access to independent professional advice, at the company's expense, as and when required.
The Chief Executive Officer is available to meet with institutional shareholders to discuss any issues and concerns regarding the
Group's governance.  The non-executive directors can also attend meetings with major shareholders if requested.
The participation of both private and institutional investors at the Annual General Meeting is welcomed by the board.
Internal controls
The directors acknowledge their responsibility for the Company's and the Group's systems of internal control, which are designed to
safeguard the assets of the Group and ensure the reliability of financial information for both internal use and external publication.
Overall control is ensured by a regular detailed reporting system covering both technical progress of a project and the state of the
group's financial affairs. The board has put in place procedures for identifying, evaluating and managing any significant risks that face
the group.
Any system of internal control can provide only reasonable, and not absolute, assurance that material financial irregularities will be
detected or that the risk of failure to achieve business objectives is eliminated.  The directors, having reviewed the effectiveness of the
system of internal financial, operational and compliance controls and risk management, consider that the system of internal control
operated effectively throughout the financial year and up to the date the financial statements were signed.
Committees
Each of the following committees has its own terms of reference.
Audit Committee
The Audit Committee comprises of three non-executive directors.  Its terms of reference indicate at least two regular meetings per year.
The audit committee has met once during the current year. The Audit Committee's primary responsibilities are to review the
effectiveness of the company's systems of internal control, to review with the external auditors the nature and scope of their audit and
the results of the audit, and to evaluate and select external auditors.
Remuneration Committee
The Remuneration Committee comprises of three non-executive directors. It plans to meet at least twice in each year.  The
Remuneration Committee has met once during the year. 
The Company's policy is to remunerate senior executives fairly in such a manner as to facilitate the recruitment, retention and
motivation of staff.  The Remuneration Committee agrees with the board a framework for the remuneration of the chairman, the
executive directors and the senior management of the company.  The principal objective of the Committee is to ensure that members of
the executive management of the Company are provided incentives to encourage enhanced performance and are, in a fair and
responsible manner, rewarded for their individual contributions to the success of the Company.  Non-executive fees are considered and
agreed by the board as a whole.
Corporate Governance Statement 40
Independent Auditor’s Report
Financial Statements & Other Information
Annual Report and Accounts 2012
www.vgmplc.com
For the year ended 31 August 2012
Independent auditor’s report to the members of Vatukoula Gold Mines Plc.
We have audited the financial statements of Vatukoula Gold Mines Plc. for the year ended 31 August 2012 which comprise the
Consolidated Statement of Comprehensive Income, Consolidated and Company Statement of Financial Position, Consolidated and
Company Statement of Changes in Equity, Consolidated and Company Statement of Cash Flows and the related notes. The financial
reporting framework that has been applied in their preparation is applicable law and International Financial Reporting Standards (IFRSs)
as adopted by the European Union and, as regards the parent company financial statements, as applied in accordance with the
provisions of the Companies Act 2006.
Respective responsibilities of directors and auditor
As explained more fully in the Directors’ Responsibilities Statement set out on page 39, the directors are responsible for the preparation
of the financial statements and for being satisfied that they give a true and fair view.
Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International
Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board’s (APB’s) Ethical
Standards for Auditors. This report is made solely to the company’s members as a body in accordance with Chapter 3 of Part 16 of the
Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are
required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or
assume responsibility to anyone other than the company and the company’s members as a body for our audit work, for this report, or
for the opinions we have formed.
Scope of the audit of the financial statements
A description of the scope of an audit of financial statements is provided on the APB's web-site at
www.frc.org.uk/apb/scope/private.cfm
Opinion on the financial statements
In our opinion:
• the financial statements give a true and fair view of the state of the group’s and of the parent company’s affairs as at 31 August 2012
and of the group’s loss for the year then ended;
• the group financial statements have been properly prepared in accordance with IFRSs as adopted by the European Union; 
• the parent company financial statements have been properly prepared in accordance with IFRSs as adopted by the European Union
and as applied in accordance with the provisions of the Companies Act 2006; and
• the financial statements have been prepared in accordance with the requirements of the Companies Act 2006.
Opinion on other matter prescribed by the Companies Act 2006
In our opinion the information given in the Directors’ Report for the financial year for which the financial statements are prepared is
consistent with the financial statements.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in
our opinion:
• adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received 
from branches not visited by us; or
• the parent company financial statements are not in agreement with the accounting records and returns; or
• certain disclosures of directors’ remuneration specified by law are not made; or
• we have not received all the information and explanations we require for our audit.
Richard Metcalfe (Senior Statutory Auditor) 
for and on behalf of Mazars LLP
Chartered Accountants and Statutory Auditor 
Tower Bridge House
St Katharine’s Way
London E1W 1DD
9 January 2013 Overview Performance Governance Financial Statements & Other Information
41
www.vgmplc.com
For the year ended 31 August 2012 Notes 2012 2011
£’000 £’000
Turnover 4 54,925 47,964 
Cost of sales 5 (53,544) (44,718)
Gross profit 1,381 3,246 
Operating expenses
Administrative expenses (2,762) (2,301)
Foreign exchange gains 1,334 1,592 
Depreciation and amortisation expense (6,551) (6,074)
Underlying operating loss (6,598) (3,537)
Inventory obsolescence write back 17 47 179 
Gain on disposal of assets 27 - 
Provision for mine rehabilitation 45 - 
Provision for doubtful debt (expense) / write back 18 (993) 242 
Share based payments expense 20 (627) (808)
Operating loss 6 (8,099) (3,924)
Interest receivable and other income 8 65 98 
Interest payable and similar charges 8 (111) (107)
Net loss before taxation (8,145) (3,933)
Taxation 9 1,075 1,618 
Loss for the period (7,070) (2,315)
Attributable to:
Owners of the Parent (7,070) (2,315)
Non Controlling interest - - 
(7,070) (2,315)
Other comprehensive income
Currency translation differences 440 178 
Total comprehensive loss (6,630) (2,137)
Attributable to:
Owners of the Parent (6,630) (2,137)
Non Controlling interest - - 
Loss per share Pence Pence 
Basic 11 (7.81) (2.76)
Diluted 11 (7.81) (2.76)
All activities relate to continuing operations.
The notes on pages 49 to 84 form an integral part of these financial statements. 
Consolidated Statement of 
Comprehensive Income 42
Financial Statements & Other Information
Annual Report and Accounts 2012
www.vgmplc.com
As at 31 August 2012 Notes 2012 2011
£’000 £’000
Assets
Non-current assets
Intangible assets 12 36,841 34,057 
Property, plant and equipment  13 25,713 23,533 
Mine properties and development 14 11,515 6,955 
Total non-current assets  74,069 64,545 
Current assets
Inventories 17 7,771 8,034 
Trade and other receivables  18 6,383 7,794 
Cash and cash equivalents  19 2,437 6,892 
Total current assets  16,591 22,720 
Total Assets 90,660 87,265 
Current liabilities
Trade and other payables  21 10,053 4,229 
Provisions 22 1,073 664 
Borrowings 23 - 5 
Vatukoula Social Assistance Trust Fund 24 1,189 1,558 
Total current liabilities 12,315 6,456 
Non-current Liabilities
Provisions 22 3,320 4,141 
Convertible loan 25 317 341 
Vatukoula Social Assistance Trust Fund 24 15 13 
Deferred tax liability 32 6,758 7,776 
Total non-current liabilities 10,410 12,271 
Shareholders’ Equity
Share capital  20 4,828 4,378 
Share premium account  81,659 76,709 
Merger reserve  2,167 2,167 
Foreign exchange reserve 1,022 582 
Other reserves 2,882 2,358 
Accumulated losses (24,623) (17,656)
Total shareholders' equity 67,935 68,538 
Total liabilities and shareholders' equity 90,660 87,265 
Approved by the Board and authorised for issue on 9 January 2013 and signed on behalf of the Board of Directors by:
K C Morzaria
Director
9 January 2013
The notes on pages 49 to 84 form an integral part of these financial statements. 
Consolidated Statement of Financial Position Overview Performance Governance Financial Statements & Other Information
43
www.vgmplc.com
As at 31 August 2012 Notes 2012 2011
£’000 £’000
Assets
Non-current assets
Investment in subsidiary companies 16 49,495 46,729 
Property, plant and equipment  13 - 250 
Available for sale investments 15 - - 
Total non-current assets  49,495 46,979 
Current assets
Trade and other receivables  18 24,432 17,032 
Cash and cash equivalents  19 270 4,774 
Total current assets  24,702 21,806 
Total Assets 74,197 68,785 
Current liabilities
Trade and other payables  21 193 197 
Non-current Liabilities
Convertible loan 25 317 341 
Shareholders’ Equity
Share capital  20 4,828 4,378 
Share premium account  81,659 76,709 
Other reserves 2,882 2,358 
Accumulated losses (15,682) (15,198)
Total shareholders' equity 73,687 68,247 
Total liabilities and shareholders' equity 74,197 68,785 
Approved by the Board and authorised for issue on 9 January 2013 and signed on behalf of the Board of Directors by:
K C Morzaria
Director
9 January 2013
The notes on pages 49 to 84 form an integral part of these financial statements. 
Company Statement of Financial Position 44
Consolidated Statement of Changes 
in Shareholders’ Equity
Financial Statements & Other Information
Annual Report and Accounts 2012
www.vgmplc.com
As at 31 August 2012
Equity
Share component
Ordinary Foreign based of
share Share Merger exchange payment convertibleAccumulated
capital premium reserve reserve reserve loan note losses Total 
£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 
Balance at 1 Sep 2011 4,378 76,709 2,167 582 2,313 45 (17,656) 68,538 
Loss  for the year - - - - - - (7,070) (7,070)
Other comprehensive income
– Currency translation 
differences - - - 440 - - - 440
Total comprehensive income - - - 440 - - (7,070) (6,630)
Issue of shares 450 4,950 - - - - - 5,400 
Cost of share issue - - - - - - - - 
Share option expired - - - - (103) - 103 - 
Share based payments - - - - 627 - - 627
Balance at 
31 August 2012 4,828 81,659 2,167 1,022 2,837 45 (24,623) 67,935
Share premium: The share premium reserve represents the consideration that has been received in excess of the nominal value of
shares on issue of new ordinary share capital.
Merger reserve: The merger reserve represents shares that have been issued at a premium to their nominal value on acquisition of
another company.
Foreign exchange reserve: The foreign exchange reserves represents the exchange gains or losses resulting from translating foreign
currency amounts to the reporting currency during the consolidation of the accounts of the Group companies.
Share based payment reserve: The share-based payment reserve represents cumulative amounts charged to the Statement of
Comprehensive Income in respect of share based payment arrangements, where it has not yet been settled by means of an award of
shares.
Equity component of convertible loan note: The equity component of the convertible loan notes represents the remaining equity
component of convertible notes which has not yet been converted into shares.
Accumulated losses: The accumulated losses represent profits and losses retained in previous and current period.
The notes on pages 49 to 84 form an integral part of these financial statements.  Overview Performance Governance Financial Statements & Other Information
45
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As at 31 August 2012
Equity
Share component
Ordinary Foreign based of
share Share Merger exchange payment convertibleAccumulated
capital premium reserve reserve reserve loan note losses Total 
£’000 £’000 £’000 £’000 £’000   £’000  £’000 £’000 
Balance at 1 Sep 2010 4,031 69,699 2,167 404 1,539 53 (15,378) 62,515  
Loss for the year - - - - - - (2,315) (2,315)
Other comprehensive income
– Currency translation 
differences - - - 178 - - - 178 
Total comprehensive income - - - 178 - - (2,315) (2,137)
Issue of shares 344 7,372 - - - - - 7,716 
Cost of share issue - (385) - - - - - (385)
Share option expired - - - - (18) - 18 - 
Convertible loan 3 23 - - - (8) 19 37 
Share based payments - - - - 792 - - 792 
Balance at 
31 August 2011 4,378 76,709 2,167 582 2,313 45 (17,656) 68,538 
Share premium: The share premium reserve represents the consideration that has been received in excess of the nominal value of
shares on issue of new ordinary share capital.
Merger reserve: The merger reserve represents shares that have been issued at a premium to their nominal value on acquisition of
another company.
Foreign exchange reserve: The foreign exchange reserves represents the exchange gains or losses resulting from translating foreign
currency amounts to the reporting currency during the consolidation of the accounts of the Group companies.
Share based payment reserve: The share-based payment reserve represents cumulative amounts charged to the Statement of
Comprehensive Income in respect of share based payment arrangements, where it has not yet been settled by means of an award of
shares.
Equity component of convertible loan note: The equity component of the convertible loan notes represents the remaining equity
component of convertible notes which has not yet been converted into shares.
Accumulated losses: The accumulated losses represent profits and losses retained in previous and current period.
The notes on pages 49 to 84 form an integral part of these financial statements. 
Consolidated Statement of Changes
in Shareholders’ Equity 46
Company Statement of Changes in
Shareholders’ Equity
Financial Statements & Other Information
Annual Report and Accounts 2012
www.vgmplc.com
As at 31 August 2012
Equity
Share component
Ordinary based of
share Share payment convertible Accumulated
capital premium reserve loan note losses Total 
£’000 £’000 £’000 £’000 £’000 £’000 
Balance at 1 September 2011 4,378 76,709 2,313 45 (15,198) 68,247
Loss for the year - - - - (587) (587)
Total comprehensive income - - - - (587) (587)
Issue of shares 450 4,950 - - - 5,400 
Cost of share issue - - - - - - 
Share option expired - - (103) - 103 - 
Convertible loan - - - - - - 
Share based payments - - 627 - - 627 
Balance at 31 August 2012 4,828 81,659 2,837 45 (15,682) 73,687 
Equity
Share component
Ordinary based of
share Share payment convertible Accumulated
capital premium reserve loan note losses Total 
£’000 £’000 £’000 £’000 £’000 £’000 
Balance at 1 September 2010 4,031 69,699 1,539 53 (12,843) 62,479 
Loss for the year - - - - (2,392) (2,392)
Total comprehensive income - - - - (2,392) (2,392)
Issue of shares 344 7,372 -  -  - 7,716 
Cost of share issue - (385) -  -  - (385)
Share option expired - - (18) - 18 - 
Convertible loan 3 23 - (8) 19 37 
Share based payments - - 792 - - 792 
Balance at 31 August 2011 4,378 76,709 2,313 45 (15,198) 68,247 
Share premium: The share premium reserve represents the consideration that has been received in excess of the nominal value of
shares on issue of new ordinary share capital.
Share based payment reserve: The share-based payment reserve represents cumulative amounts charged to the Statement of
Comprehensive Income in respect of share based payment arrangements, where it has not yet been settled by means of an award of
shares.
Equity component of convertible loan note: The equity component of the convertible loan notes represents the remaining equity
component of convertible notes which has not yet been converted in shares.
Accumulated losses: The accumulated losses represent profits and losses retained in previous and current period.
The notes on pages 49 to 84 form an integral part of these financial statements.  Overview Performance Governance Financial Statements & Other Information
47
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For the year ended 31 August 2012 Notes 2012 2011
£’000 £’000
Cash flows from operating activities
Operating loss for the period: 6 (8,099) (3,924)
Adjustments for:
Share based payments 20 627 808 
Depreciation and amortisation 6,551 6,074 
(Gain) / Loss on disposal of property plant equipment (27) 5 
Reversal of allowance for inventory obsolescence 17 (47) (179)
Foreign exchange gains (429) (1,202)
Provision for doubtful debts 18 993 (242)
Provision for mine rehabilitation 22 (45) - 
Movements in Employment Provisions 22 411 235 
Net operating (loss) / income before changes in working capital (65) 1,575 
Payment to Vatukoula Social Assistance Trust Fund 24 (397) - 
Decrease / (increase) in inventories 17 492 (1,577)
Decrease / (increase) in receivables 18 561 (2,079)
Increase / (decrease) in accounts payable 21 5,666 (231)
Net cash generated / (used) in operating activities 6,257 (2,312)
Cash flows from investing activities
Payments for intangible assets 12 (4,164) (2,667)
Purchase of property plant and equipment 13 (7,245) (6,532)
Payments for mine properties and development 14 (4,952) (1,898)
Proceeds from disposals of property plant and equipment 233 - 
Interest received 8 65 94 
Net cash used in investing activities (16,063) (11,003)
Cash flows before financing (9,806) (13,315)
Cash flows from financing activities
Proceeds from issuance of shares 20 5,400 7,716 
Costs of issue of shares - (385)
Interest paid (88) (18)
Repayment of borrowings 23 (5) (45)
Net cash provided by financing activities 5,307 7,268 
Net decrease in cash and cash equivalents (4,499) (6,047)
Cash and cash equivalents at beginning of the year 19 6,892 12,849 
Effect of foreign exchange on cash and cash equivalents 44 90 
Cash and cash equivalents at the end of the year 19 2,437 6,892 
The notes on pages 49 to 84 form an integral part of these financial statements. 
Consolidated Statement of Cash Flows 48
Company Statement of Cash Flows
Financial Statements & Other Information
Annual Report and Accounts 2012
www.vgmplc.com
For the year ended 31 August 2012 Notes 2012 2011
£’000 £’000
Cash flows from operating activities
Operating loss for the year: 6 (2,178) (2,408)
Adjustments for:
Share based payments expense 20 360 128 
Net operating income before changes in working capital (1,818) (2,280)
Increase in receivables 18 (8,060) (10,670)
Decrease in accounts payable 21 (4) (121)
Net cash used in operating activities (9,882) (13,071)
Cash flows from investing activities
Interest received 8 53 62 
Net cash provided by investing activities 53 62 
Cash flows before financing (9,829) (13,009)
Cash flows from financing activities
Proceeds from issuance of shares 20 5,400 7,716 
Costs of issue of shares - (385)
Interest paid (75) - 
Net cash provided by financing activities 5,325 7,331 
Net decrease in cash and cash equivalents (4,504) (5,678)
Cash and cash equivalents at beginning of the year 19 4,774 10,452 
Cash and cash equivalents at the end of the year 19 270 4,774 
The notes on pages 49 to 84 form an integral part of these financial statements.  Overview Performance Governance Financial Statements & Other Information
49
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1. General information
Vatukoula Gold Mines Plc. is registered in England and Wales under number 5059077. The Company is governed by its articles of
association and the principal statute governing the Company is the Companies Act 2006.  The Company’s registered office is situated at
5th floor, Carmelite, Victoria Embankment, Blackfriars, London, EC4Y 0LS. The company is listed on the AIM market of the London
Stock Exchange.
The nature of the Group’s and Company’s operations and principal activities are set out in the Directors’ Report on page 35.
2. Basis of preparation
The consolidated financial statements of Vatukoula Gold Mines Plc. and all its subsidiaries (the ‘Group’) have been prepared in
accordance with International Financial Reporting Standards (IFRS) as adopted for use by the European Union.
The consolidated financial statements have been prepared on a historical cost basis.  The consolidated financial statements are
presented in Pounds Sterling (GBP) and all values are rounded to the nearest thousand (£’000) except when otherwise indicated.
The principal accounting policies adopted by the Group and Company in the preparation of the financial statements are set out below.
The Board has reviewed the accounting policies set out in the financial statements and considers them to be most appropriate to the
Group’s business.
These financial statements are presented in sterling.  Group revenues are in US dollars. Given that the Fijian dollar is not widely used as
a reporting currency and that the parent company is listed in the United Kingdom it is deemed appropriate for the presentation currency
of the Group to be in sterling.  
Statement of Compliance with IFRS
The Group’s and Company’s financial statements have been prepared in accordance with International Financial Reporting Standards
(IFRS and interpretations) as adopted by the European Union.
New accounting standards
The Group and Company adopted IFRS 7 ‘Financial Instruments: Disclosures’– Transfers of Financial Assets’. There was no impact from
the adoption of this standard as the Group did not transfer any financial instruments during the year.
There was no material effect of other IFRS’s, IAS’s and IFRIC’s that came into effect in the year, as these new or amended standards,
amendments and interpretations did not apply to operations of the Group and the Company.
The Group and the Company have not applied the following standard, amendments and interpretations that are applicable and have
been issued, but are not yet effective.
New/Revised International Financial 
Reporting Standards Issued Effective Date
IAS 1 Presentation of Financial June 2011 Annual periods beginning on or after 1 July 2012
Statements – Amendments 
to revise the way other 
comprehensive income 
is presented
IAS 24 Related Party Disclosure November 2009 Annual periods beginning on or after 1 January 2011
– Revised definition of
related parties
IFRS 12 Income Taxes December 2010 Annual periods beginning on or after 1 January 2012
– Limited scope amendment 
(recovery of underlying assets)
IFRS 13 Fair Value measurement Original issue May 2011 Annual periods beginning on or after 1 January 2013
Notes to the Financial Statements 50
Notes to the Financial Statements continued
Financial Statements & Other Information
Annual Report and Accounts 2012
www.vgmplc.com
2. Basis of preparation continue
New/Revised International Financial 
Reporting Standards Issued Effective Date
IFRS 10 Consolidated Financial Original issue May 2011 Annual periods beginning on or after 1 January 2013
Statements
IAS 19 Employee benefits Amended June 2011 Annual periods beginning on or after 1 January 2013
– Amended standards 
resulting from the 
post-Employee benefits 
and termination benefits 
projects
IAS 27 Consolidated and Separate May 2011 Annual periods beginning on or after 1 January 2013
Financial Statements 
– Reissued as IAS 27 
Separate Financial Statements 
(as amended in 2011)
IAS 28 Investments in Associates May 2011 Annual periods beginning on or after 1 January 2013
– Reissued as IAS28. 
Investments in Associates 
and Joint Ventures  
(as amended in 2011)
IFRS 10 Consolidated Financial Original issue September 2012 Annual periods beginning on or after 1 January 2014
Statements – Amendment: 
Investment Entities
IFRS 11 Joint arrangements Original issue May 2011 Annual periods beginning on or after 1 January 2014
IFRS 12 Disclosure of interests Original issue May 2011 Annual periods beginning on or after 1 January 2014
in other Entities
Improvements Amendments to various May 2011 Annual periods beginning on or after 1 January 2013
to IFRSs standards and interpretations 
affecting the scope, 
recognition, measurement, 
presentation and/or disclosure
IFRIC20 Stripping costs in the Annual periods beginning on or after 1 January 2013
production phase of a
surface mine
IFRS 9 Financial Instruments’ October 2009 Annual periods beginning on or after 1 January 2015
The directors expect that the adoption of the above pronouncements will have no material impact to the financial statements in the
period of initial applications. Overview Performance Governance Financial Statements & Other Information
51
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3. Summary of significant accounting policies
(a) Basis of consolidation
The consolidated financial information incorporates the financial statements of the Company and its subsidiaries (the “Group”).  Control is
achieved where the Group has the power to govern the financial and operating policies of an investee entity so as to obtain benefits from
its activities.
With the exception of foreign exchange variances on inter-company finance balances, inter-company transactions, balances and
unrealised gains on transactions between group companies are eliminated; unrealised losses are also eliminated unless the transaction
provides evidence of an impairment of the asset transferred.
Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used in line with
those used by the Group.
(b) Going concern
The Group’s business activities, together with factors likely to affect its future development, performance and position are set out in the
Business Review section of this report. The financial position of the Group, its cash flows, liquidity position and borrowing facilities are
described in the financial review. In addition note 26 to the financial statements include the Group’s objectives, policies and processes for
managing its capital, its financial risk management objectives and details of its financial instruments and it its exposure to credit and liquidity
risk.
In assessing the Group’s going concern the Directors have taken into account the above factors, including the financial position of the
Group and in particular its cash position, the current gold price and market expectation for the same over the medium term, and the
Group’s capital expenditure and financing plans.
The Group’s forecasts and projections, taking account of reasonable possible changes in gold price, mining costs and the concentration
of the gold in the ore delivered to the mill; show that the Group should be able to operate using its current cash position. The directors
have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future.
Thus they continue to adopt the going concern basis of accounting in preparing the annual financial statements.
(c) Business combinations
The purchase method of accounting is used to account for the acquisition of subsidiaries by the Group.  The cost of the acquisition is
measured at the aggregate of the fair values, at the date of exchange, of the assets given, liabilities incurred or assumed and equity
instruments issued by the Group in exchange for control of the acquiree. Acquisition costs incurred are expensed and included in
administrative expenses.  The acquiree’s identifiable assets, liabilities and contingent liabilities that meet the conditions for recognition
under IFRS 3 “Business Combinations” are recognised at their fair value at the acquisition date, except for non-current assets (or
disposal groups) that are classified as held for sale in accordance with IFRS 5 “Non Current Assets Held for Sale and Discontinued
Operations”, which are recognised and measured at fair value less costs to sell.
Where there is a difference between the Group’s interest in the net fair value of the acquiree’s identifiable assets, liabilities and contingent
liabilities and the cost of the business combination, any excess cost is recognised in the statement of financial position as goodwill and
any excess net fair value is recognised immediately in the profit or loss as negative goodwill on acquisition of subsidiary. The non-
controlling interest in the acquiree is initially measured at the non-controlling interest proportion of the net fair value of the assets,
liabilities and contingent liabilities recognised.
(d) Significant accounting judgements, estimates and assumptions
Judgments
In the process of applying the Group’s accounting policies, management has made the following judgments, apart from those involving
estimations and assumptions, which have the most significant effect on the amounts recognised in the consolidated financial statements:
1. Income taxes (see note 9)
The Group is subject to income taxes in the United Kingdom, Fiji and Brazil. Significant judgement is required in determining the
worldwide provision for income taxes. There are many transactions and calculations for which the ultimate tax determination is uncertain
during the ordinary course of business. Where the final tax outcome of these matters is different from the amounts that were initially
recorded, such differences will impact the current and deferred tax provisions in the period in which such determination is made 52
Notes to the Financial Statements continued
Financial Statements & Other Information
Annual Report and Accounts 2012
www.vgmplc.com
3. Summary of significant accounting policies continued
2. Mineral Resources and Reserves
Quantification of mineral resources requires a judgement on the reasonable prospects for eventual economic extraction. Quantification
of ore reserves requires a judgement on whether mineral resources are economically mineable. These judgements are based on the
assessment of mining, metallurgical, economic, marketing, legal, environmental, social and governmental factors involved, in
accordance with the Australasian Code for Reporting Exploration Results, Mineral Resources and Ore Reserves. These factors are a
source of uncertainty and changes could result in an increase or decrease in mineral resources and ore reserves. This would in turn
affect certain amounts in the financial statements such as amortisation, rehabilitation provisions which are calculated on a projected life
of mine figures.
3. Provisions and Contingent Liabilities (notes 22 & 31)
Judgements are made as to whether a past event has led to a liability that should be recognised in the financial statements or disclosed
as a contingent liability. Quantifying any such liability often involves judgements and estimations. These judgements are based on a
number of factors including the nature of the claim or dispute, the legal process and potential amount payable, legal advice received,
previous experience and the probability of a loss being realised. Several of these factors are a source of estimation uncertainty. 
4. Inventory Valuations
Valuations of gold stockpiles, gold in circuit and gold within the fine ore bin requires estimations of the amount contained in, and the
recovery rates from, the various work in progress gold circuits. These estimations are based on analysis of samples and prior
experience. A judgement is also applied when the gold in circuit will be recovered and what gold price should be applied in calculating
the net realisable value; these are both sources of uncertainty.
Estimates and Assumptions
The preparation of financial statements requires the application of estimates and assumptions on future events, which affects assets
and liabilities at the reporting date and income and expenditure for the period. The estimates and underlying assumptions are reviewed
on an ongoing basis.  Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision
affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
The key estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of certain
assets and liabilities within the next annual reporting period are:
5. Share-based payment transactions (see note 20)
The Group measures the cost of equity-settled transactions with employees by reference to the fair value of the equity instruments at
the date at which they are granted.  The fair value is determined using the Black-Scholes model. The Black-Scholes model is
particularly sensitive to volatility calculation. Therefore any change in the methodology of the calculation of volatility will impact the
amount expensed as share based payments on the statement of comprehensive income.
The value expensed on the statement of comprehensive income is £627,000 (2011: £808,000)
6. Intangible assets (see note 12)
Amortisation
Intangible assets (other than goodwill) are amortised over their useful lives.  Useful lives are based on management’s estimates of the
period that the assets will generate revenue, which are periodically reviewed for continued appropriateness.  Due to the long lives of
assets, changes to the estimates used can result in significant variances in the carrying value.
The Group assesses the impairment of intangible assets subject to amortisation or depreciation whenever events or changes in
circumstances indicate that the carrying value may not be recoverable.  Factors considered important that could trigger an impairment
review include the following:
- significant underperformance relative to historical or projected future operating results;
- significant changes in the manner of the use of the acquired assets or the strategy for the overall business; and 
- significant negative industry or economic trends.
The complexity of the estimation process and issues related to the assumptions, risks and uncertainties inherent in the application of
the Group’s accounting estimates in relation to intangible assets affect the amounts reported in the financial statements, especially the
estimates of the expected useful economic lives and the carrying values of those assets.  If business conditions were different, or if
different assumptions were used in the application of this and other accounting estimates, it is likely that materially different amounts
could be reported in the Group’s financial statements. In particular it would affect, the value of the intangible asset and rehabilitation
provisions.
The carrying value at the reporting date of the intangible assets is £36,841,000 (2011: £34,057,000) Overview Performance Governance Financial Statements & Other Information
53
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3. Summary of significant accounting policies continued
7. Mine Rehabilitation Provisions
Such provisions require a judgement on likely future obligations, based on assessment of technical, legal and economic factors. The
ultimate cost of environmental remediation is uncertain and cost estimates can vary in response to many factors, including changes in
the relevant legal requirements, the emergence of new restoration techniques and changes to the life of mine. Changes to any of these
costs will affect amounts in the financial statement such as the mine asset and the provision for mine rehabilitation.
The carrying value at the reporting date of the mine rehabilitation provision is £3,247,000 (2011: £4,092,000)
8. Allowance for doubtful debts (see note 18)
Each receivable balance is assessed to determine recoverability.  Provisions are made for those debtors where evidence indicates that
recoverability is doubtful.  Amounts are written off when they are deemed irrecoverable.  Any changes to estimates made in relation to
debtors recoverability may result in materially different amounts being reported by the Group’s financial statements. In particular any
changes will affect trade and other receivable as well as the statement of comprehensive income.
The carrying value at the reporting date of the provision for doubtful debts is £3,913,000 (2011: £2,861,000)
(e) Revenue recognition
Revenue is recognised when persuasive evidence exists that all of the following criteria are met:
• the significant risks and rewards of ownership of the product have been transferred to the buyer;
• neither continuing managerial involvement to the degree usually associated with ownership, nor effective control over the goods 
sold has been retained;
• the amount of revenue can be measured reliably;
• it is probable that the economic benefits associated with the sale will flow to the Group; and
• the costs incurred or to be incurred in respect of the sale can be measured reliably.
Bullion sales
The transfer of risks and rewards for the sale of the gold bullion is assessed as taking place when the physical possession is passed to
the customer upon collection of the gold bullion from the mining premises.  The customer does not have any right of return subsequent
to the physical transfer, and accordingly at this point revenue is recognised.
Finance revenue
Interest revenue is recognised as interest accrues using the effective interest rate method.  This is a method of calculating the amortised
cost of a financial asset and allocating the interest income over the relevant period using the effective interest rate, which is the rate that
exactly discounts estimated future cash receipts through the expected life of the financial asset to the net carrying amount of the
financial asset.
(f) Turnover and Segmental Analysis
The reportable segments identified make up all of the Group’s external revenue, which is derived primarily from the sale of gold. The
reportable segments are an aggregation of the operating segments within the Group as prescribed by IFRS 8. The reportable segments
are based on the Group’s management structures and the consequent reporting to the Chief Operating Decision Maker, the Board of
Directors. Our sector results are attributable to unallocated head office corporate costs, gold production & exploration costs, and other
costs. These reportable segments also correspond to geographical locations such that each reportable segment is in a separate
geographic location, i.e.; unattributed head office costs – UK, gold mining – Fiji, other activities – Brazil.
Income and expenses included in profit or loss for the year are allocated directly or indirectly to the reportable segments. Expenses
allocated as either directly or indirectly attributable comprise: cost of sales, gold duty and administrative expenses.
Non-current segment assets comprise the non-current assets used directly for segment operations, including intangible assets,
property, plant and equipment and mine properties and development.
Current segment assets comprise the current assets used directly for segment operations, including inventories, trade receivables, other
receivables and pre-payments.
Inter-company balances comprise transactions between operating segments making up the reportable segments. These balances are
eliminated to arrive at the figures in the consolidated accounts.
(g) The Company’s investments in subsidiaries
In its separate financial statements the Company recognises its investments in subsidiaries at cost, less any impairment for permanent
diminution in value.  Differences arising from changes in fair values of intercompany loans receivable are treated as an increase in the
investment in the subsidiary. 54
Notes to the Financial Statements continued
Financial Statements & Other Information
Annual Report and Accounts 2012
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3. Summary of significant accounting policies continued
(h) Foreign currency
The consolidated financial statements are presented in Pounds Sterling (“£”), which is the parent company’s functional currency and the
Group’s presentation currency.  Each entity in the Group determines it own functional currency and items included in the financial
statements of each entity are measured using that functional currency.  The assets and liabilities of these subsidiaries are translated into
the presentation currency of Vatukoula Gold Mines Plc. at the rate of exchange ruling at the reporting date and their Statements of
Comprehensive Income  are translated at the average exchange rate for the year.  The exchange differences arising on the translation
are taken directly to a separate component of equity.
All other differences arising on translation are included in the profit or loss except for exchange differences arising on non-monetary
assets and liabilities where the changes in fair values are recognised directly in equity. 
Goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as assets and liabilities of the foreign entity
and translated at the closing rate.
Exchange differences recognised in profit or loss of Group entities’ separate financial statements on the translation of long-term
monetary items forming part of the Group’s net investment in the overseas operation concerned are reclassified to the foreign exchange
reserve.  On disposal of a foreign operation, the cumulative exchange differences recognised in the foreign exchange reserve relating to
that operation up to the date of disposal are transferred to the Statements of Comprehensive Income as part of the profit or loss.
(i) Goodwill on acquisition
Goodwill arising on the acquisition of a subsidiary or jointly controlled entity represents the excess of the cost of acquisition over the
Group’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the subsidiary or jointly controlled
entity recognised at the date of acquisition.  Goodwill is initially recognised as an asset at cost and is subsequently measured at cost
less any accumulated impairment losses. 
For the purpose of impairment testing, goodwill is allocated to each of the Group’s cash-generating units expected to benefit from
synergies of the combination.  Cash-generating units to which goodwill has been allocated are tested for impairment annually, or more
frequently when there is an indication that the unit may be impaired.  If the recoverable amount of the cash-generating unit is less than
the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit
and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.  An impairment loss
recognised for goodwill is not reversed in subsequent periods.
(j) Inventories
Ore stock, consisting of stocks on which further processing is required to convert them to trading stocks, is valued at the lower of cost
and net realisable value.  Cost is calculated using a weighted average cost model, where inventories are valued at the weighted average
cost of the closing inventory.  Net realisable value is estimated selling price less the estimated costs necessary to make the sale.
Other inventories include:
(i) Stores, comprising plant spares and consumable stores, are valued on the basis of weighted average cost after providing for 
obsolescence.
(ii) Work in progress is valued on the basis of first in first out and includes direct costs, depreciation and amortisation.
(iii) Insurance spares are stated at the lower of cost and net realisable value. Insurance spares are critical spare parts to equipment, that
although may not be required on a regular basis are kept in inventory because, should a particular piece of equipment fail it would 
materially adversely affect production.
Gold in circuit
Gold in circuit is valued at the lower of cost and net realisable value.  Cost comprises direct material, labour and transportation
expenditure incurred in getting inventories to their existing location and condition, together with an appropriate portion of fixed and
variable overhead expenditure based on weighted average costs incurred during the period in which such inventories were produced.
Net realisable value is the amount anticipated to be realised from the sale of inventory in the normal course of business less any
anticipated costs to be incurred prior to its sale.
(k) Intangible assets
Acquired intangible assets, which consist of mining rights and intangible computer software, are valued at cost less accumulated
amortisation.  Amortisation is calculated using the units of production method which is calculated over the life span of the mine.  As at
31 August 2012, the estimated remaining life span of the mine is 8 years. This is the entire period over which currently the mine is being
amortised. Overview Performance Governance Financial Statements & Other Information
55
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3. Summary of significant accounting policies continued
The Group applies the full cost method of accounting for exploration and evaluation costs, having regard to the requirements of IFRS 6
‘Exploration for and Evaluation of Mineral Resources’. All costs associated with mining development and investment are capitalised on a
project by project basis pending determination of the feasibility of the project. Such expenditure comprises appropriate technical and
administrative expenses but not general overheads.
Such exploration and evaluation costs are capitalised provided that the Group’s rights to tenure are current and one of the following
conditions is met:
(i) such costs are expected to be recouped through successful development and exploitation of the area of interest or alternatively by 
its sale; or 
(ii) the activities have not reached a stage which permits a reasonable assessment of whether or not economically recoverable 
resources exist; or
(iii) active and significant operations in relation to the area are continuing.
When an area of interest is abandoned or the directors decide that it is not commercial, any exploration and evaluation costs previously
capitalised in respect of that area are written off to profit or loss.  Amortisation does not take place until production commences in these
areas.  Once production commences, amortisation is calculated on the unit of production method, over the remaining life of the mine. 
Impairment assessments are carried out regularly by the directors. Exploration and evaluation assets are assessed for impairment when
facts and circumstances suggest that the carrying amount may exceed its recoverable amount. Such indicators include the point at
which a determination is made as to whether or not commercial reserves exist. 
The recoverability of capitalised mining costs and mining interests is dependent upon the discovery of economically recoverable
reserves, the ability of the Company to obtain necessary financing to complete the development of reserves and future profitable
production or proceeds from the disposition of recoverable reserves. 
The assets’ residual value and useful lives are reviewed and adjusted if appropriate, at each reporting date.  An asset’s carrying value is
written down immediately to its recoverable value if the asset’s carrying amount is greater than its listed recoverable amount.
(l) Tangible assets
(i) Property, plant and equipment
Property, plant and equipment are stated at cost less accumulated depreciation and any accumulated impairment losses.  Cost is the
fair value of consideration given to acquire the asset at the time of its acquisition or construction and includes the direct cost of bringing
the asset to the location and condition necessary for operation and the estimated future cost of closure and rehabilitation of the facility.
Depreciation is provided on all tangible assets to write down the cost less estimated residual value of each asset over its useful
economic life on a units of production method or straight line basis. The estimated useful lives are as follows: 
Freehold land Not depreciated
Plant and machinery Over 3 – 10 years
Mine Asset Life of mine basis
Motor vehicles Over 3 years
Fixtures, fittings and equipment Over 4 years
Work in progress Not depreciated
The depreciation charge for each period is recognised in the Statement of Comprehensive Income.
Assets in the course of construction are capitalised in the Work in Progress account. The cost comprises its purchase price and any
costs directly attributable to bringing it into working condition for its intended use, at which point it is transferred to property, plant and
equipment and depreciation commences.
Subsequent expenditure relating to an item of property, plant and equipment is capitalised when it is probable that future economic
benefits from the use of the asset will be increased.  All other subsequent expenditure is recognised as an expense in the period in
which it is incurred.
Repairs and maintenance which neither materially add to the value of assets nor appreciably prolong their useful lives are charged
against income.
The gain or loss arising from the de-recognition of any items of property, plant and equipment is included in the profit or loss when the
item is de-recognised.  The gain or loss arising from the de-recognition of an item of property, plant and equipment is determined as the
difference between the net disposal proceeds, if any, and the carrying amount of the item. The carrying values of property, plant and
equipment are reviewed for impairment when events or changes in circumstances indicate the carrying value may not be recoverable. 56
Notes to the Financial Statements continued
Financial Statements & Other Information
Annual Report and Accounts 2012
www.vgmplc.com
3. Summary of significant accounting policies continued
(ii) Mine properties and development (“MPD”)
This represents the accumulated exploration, evaluation, development and acquisition expenditure in relation to areas of interest in
which economically recoverable reserves exist.
Development costs that can be capitalised fall into the following categories:
• Initial Capital Development
This includes, but is not restricted to the following:
– Shaft sinking
– Station (plant) development & underground workshops
– Pump station and dams
– Ore and waste pass systems
• Primary Capital Development
This is the development carried out on each level in the exploration and exploitation of a mining area or orebody. It includes, but is 
not restricted to the following:
– Cross cuts, haulages and drives to the orebody
– Initial rises on the orebody to effect the first holdings to facilitate production
– Main airways
• Secondary Capital Development
This is the development carried out within an area in which the primary development has been completed and which is critical to the
continued operation of the mine or mining area. It includes, but is not restricted to the following:
– Airways, crosscuts and drives
– Pump stations
The capitalised value of mine properties is depreciated on a life of mine basis. The life of mine has been calculated on a units of
production method based on economically recoverable reserves and resources. The depreciation for the period is calculated using the
following:
Recovered gold ounces during the period X Net book value to date plus costs
Economically recoverable reserves and resources at the start of the period capitalised during the period
The net carrying value of a mine assets is reviewed regularly and, to the extent to which this amount exceeds its recoverable amount
(based on the higher of estimated future net cash flows and the mine’s asset’s current realisable value) that excess is fully provided
against in the financial year in which this is determined.
(m) Provision for mine rehabilitation
A provision for rehabilitation is initially recognised at the present value of expected future cash flows when there exists a constructive
obligation for the entity to undertake rehabilitation at the mine site.  When provisions for closure and rehabilitation are initially
recognised, the corresponding cost is capitalised as an asset, representing part of the cost of acquiring the future economic benefits of
the operation. The capitalised cost of closure and rehabilitation activities is recognised in property, plant and equipment and
depreciated accordingly. The increase in the provision for rehabilitation relating to the unwinding of the discount on the provision to the
date of settlement of the provision and the depreciation of the rehabilitation asset are recorded within profit or loss.
(n) Impairment of intangible and tangible assets excluding goodwill
The Group assesses at each reporting date whether there is an indication that an asset may be impaired.  If any such indication exists,
or when annual impairment testing for an asset is required, the Group makes an estimate of the asset’s recoverable amount.  An asset’s
recoverable amount is the higher of the asset’s or cash-generating unit’s fair value less costs to sell and its value in use and is
determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other
assets or groups of assets and the asset’s value in use cannot be estimated to be close to its fair value.  In such cases the asset is
tested for impairment as part of the cash-generating unit to which it belongs.  When the carrying amount of an asset or cash-generating
unit exceeds its recoverable amount, the asset or cash-generating unit is considered impaired and is written down to its recoverable
amount.
In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that
reflects current market assessments of the time value of money and the risk specific to the asset.  Impairment losses of continuing
operations are recognised in those expense categories consistent with the function of the impaired asset unless the asset is carried at a
revalued amount (in which case the impairment is treated as a revaluation decrease).  Overview Performance Governance Financial Statements & Other Information
57
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3. Summary of significant accounting policies continued
An assessment is made at each reporting date as to whether there is any indication that previously recognised impairment losses may
no longer exist or may have decreased.  If such indication exists, the recoverable amount is estimated, a previously recognised
impairment loss is reversed only if there has been a change in the estimates used to determine the asset’s recoverable amount since the
last impairment loss was recognised.  If that is the case the carrying amount of the asset  is increased to its recoverable amount.  That
increased amount cannot exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss
been recognised for the asset in prior years.  Such reversal is recognised in profit or loss unless the asset is carried at a revalued
amount, in which case the reversal is treated as a revaluation increase.  After such a reversal the depreciation charge is adjusted in
future periods to allocate the asset’s revised carrying amount, less any residual value, on a systematic basis over its remaining useful
life.
(o) Financial instruments
Financial assets and financial liabilities are recognised when the Group becomes a party to the contractual provisions of the instruments
and on a trade date basis.  A financial asset is derecognised when the Group’s contractual rights to future cash flows from the financial
asset expire or when the Group transfers the contractual rights to future cash flows to a third party.  A financial liability is derecognised
only when the liability is extinguished.
a. Trade and other receivables and other assets
Trade and other receivables and other assets are measured at initial recognition at fair value, and are subsequently measured at
amortised cost using the effective interest rate method.  Appropriate allowances for estimated irrecoverable amounts are recognised in
the statement of comprehensive income when there is objective evidence that the asset is impaired.
b. Cash and cash equivalents
For purposes of the consolidated statement of financial position and consolidated statement of cash flows, the Group considers all
highly liquid investments which are readily convertible into known amounts of cash and have a maturity of three months or less when
acquired to be cash equivalents. Cash and cash equivalents comprise cash at bank and in hand, and short term deposits with an
original maturity of three months or less, all of which are available for use by the Group unless otherwise stated.  
c. Investments
Investments included as financial assets are valued at fair value and are held as available for sale.  When available for sale assets are
considered to be impaired, cumulative gains or losses previously recognised in equity are reclassified to the profit or loss in the period.
d. Financial liabilities and equity
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into.  An
equity instrument is any contract that evidences a residual interest in the assets of the Group after deducting all of its liabilities.  The
Group’s financial liabilities include trade and other payables, bank loans, other borrowings, convertible loans and obligations under
finance leases.  All financial liabilities, are recognised initially at their fair value plus transaction costs that are directly attributable to the
acquisition or issue of the financial liability and subsequently measured at amortised cost, using the effective interest method, unless
the effect of discounting would be insignificant, in which case they are stated at cost.
e. Other financial liabilities
Other financial liabilities, including borrowings, are initially measured at fair value, net of transaction costs.  Other financial liabilities are
subsequently measured at amortised cost using the effective interest method. 
f. Bank borrowings
Interest-bearing bank loans and overdrafts are recorded at the proceeds received net of direct issue costs.  Finance charges, including
premiums payable on settlement or redemption and direct issue costs, are accounted for on an accruals basis to the Statement of
Comprehensive Income using the effective interest method and are added to the carrying amount of the instrument to the extent that
they are not settled in the period in which they arise.
g. Trade payables, provisions and other payables
Trade payables are not interest-bearing and are stated at cost.  Other payables which are interest-bearing are measured at fair value.
Provisions are recognised when the Group has a present legal or constructive obligation as a result of a past event, it is probable that an
outflow of economic benefits will be required to settle the obligations, and a reliable estimate of the amount can be made.  Provisions
are measured at fair value.  Provision has been made in the financial statements for benefits accruing in respect of sick leave, annual
leave, and long service leave.
h. Compound Financial Instruments
Compound financial instruments issued by the group comprise convertible loan notes that can be converted to share capital at the
option of the holder, and the number of shares to be issued does not vary with changes in their fair value. 58
Notes to the Financial Statements continued
Financial Statements & Other Information
Annual Report and Accounts 2012
www.vgmplc.com
3. Summary of significant accounting policies continued
The liability component of a compound financial instrument is recognised initially at the fair value of a similar liability that does not have
an equity conversion option. The equity component is recognised initially at the difference between the fair value of the compound
financial instrument as a whole and the fair value of the liability component. Any directly attributable transaction costs are allocated to
the liability and equity components in proportion to their initial carrying amounts.
Subsequent to initial recognition, the liability component of a financial instrument is measured at amortised cost using the effective
interest method. The equity component of a compound financial instrument is not re-measured subsequent to initial recognition except
on conversion or expiry.
(p) Financing costs and interest income
Financing costs comprise interest payable on borrowings and finance lease payments and interest income which is calculated using the
effective interest rate method.
(q) Impairment of financial assets
At each reporting date, the Group assesses whether there is objective evidence that financial assets, other than those at fair value
through profit or loss, are impaired.  The impairment loss of financial assets carried at amortised cost is measured as the difference
between the assets’ carrying amount and the present value of estimated future cash flows discounted at the financial asset’s original
effective interest rate.
(r) Share Capital
Ordinary shares are recorded at nominal value and proceeds received in excess of nominal value of shares issued, if any, are accounted
for as share premium.  Both ordinary shares and share premium are classified as equity.  Costs incurred directly to the issue of shares
are accounted for as a deduction from share premium, otherwise they are charged to the Statement of Comprehensive Income.
(s) Taxation
Tax on profit or loss for the period comprises current and deferred tax.  Tax is recognised in the Statement of Comprehensive Income
except to the extent that it relates to items recognised directly in equity, in which case it is recognised in equity.
Current tax is the expected tax payable on the taxable income for the period, using tax rates enacted or substantively enacted at the
balance sheet date, and any adjustment to tax payable in respect of previous years. 
Deferred tax is provided on temporary differences between the carrying amount of assets and liabilities for financial reporting purposes
and the amounts used for taxation purposes.  The following temporary differences are not provided for: the initial recognition of assets
or liabilities that affect neither accounting nor taxable profit other than in a business combination, and differences relating to
investments in subsidiaries to the extent that they will probably not reverse in the foreseeable future.  The amount of deferred tax
provided is based on the expected manner of realisation or settlement of the carrying amount of assets and liabilities, using tax rates
enacted or substantively enacted at the reporting date. 
A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available against which the
asset can be utilised.
(t) Share-based payments
The Company operates a share option scheme for granting share options, for the purpose of providing incentives and rewards to
eligible employees of the Group.  The cost of share options granted is measured by reference to the fair value at the date at which they
are granted.
Non-market performance and service conditions are included in the assumptions about the number of options expected to vest. The
total expense is recognised over the vesting period, which is the period over which all the specified vesting conditions are to be
satisfied.
At the end of each reporting period, the group revises its estimates of the number of options that are expected to vest based on the
non-market vesting conditions. It recognises the impact of the revision to the original estimate, if any, in the statement of comprehensive
income with a corresponding adjustment to equity.
When the options are exercised, the company issues new shares. The proceeds received net of any directly attributable transactions
costs are credited to share capital (nominal value) and share premium. Overview Performance Governance Financial Statements & Other Information
59
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3. Summary of significant accounting policies continued
(u) Contingent liabilities and contingent assets
A contingent liability is a possible obligation that arises from past events and whose existence will only be confirmed by the occurrence
or non-occurrence of one or more uncertain future events not wholly within the control of the Group.  It can also be a present obligation
arising from past events that is not recognised because it is not probable that an outflow of economic resources will be required or the
amount of obligation cannot be measured reliably.
A contingent liability is not recognised but is disclosed in the notes to the accounts.  When a change in the probability of an outflow
occurs so that the outflow is probable, it will then be recognised as a provision.
A contingent asset is a possible asset that arises from past events and whose existence will be confirmed only by the occurrence or
non-occurrence of one or more uncertain events not wholly within the control of the Group.
Contingent assets are not recognised but are disclosed in the notes to the accounts when an inflow of economic benefits is probable.
When an inflow is virtually certain, an asset is recognised.
(v) Leased assets
Operating lease: Operating lease payments are recognised as an operating expense in profit or loss on a straight-line basis over the
lease term.
Finance lease: Finance leases, which transfer to the Group substantially all the risks and benefits incidental to ownership of the leased
item, are capitalised at the commencement of the lease at the fair value of the leased property or, if lower, at the present value of the
minimum lease payments. Lease payments are apportioned between finance charges and reduction of the lease liability so as to
achieve a constant rate of interest on the remaining balance of the liability. Finance charges are recognised in finance costs in profit or
loss.
(w) Employee benefits
a. Short-term benefits
Short-term employee benefit obligations are measured on an undiscounted basis and are expensed in profit or loss as the 
related service is provided.
b. Long-term employee benefits
Obligations in respect of long-term employee benefits such as long service leave is the amount of future benefit that employees have
earned in return for their service in the current and prior periods; that benefit is discounted to determine its present value.
c. Termination benefits
Termination benefits are recognised as an expense when the Group is demonstrably committed, without realistic probability of
withdrawal, to a formal detailed plan to either terminate employment before the normal retirement date, or to provide termination
benefits as a result of an offer made to encourage voluntary redundancy.  Termination benefits for voluntary redundancies are
recognised as an expense if the company has made an offer encouraging voluntary redundancy, it is probable that the offer will be
accepted, and the number of acceptances can be measured reliably. Benefits falling due more than 12 months if the reporting date are
discounted to their present value. 60
Notes to the Financial Statements continued
Financial Statements & Other Information
Annual Report and Accounts 2012
www.vgmplc.com
4. Turnover and Segmental Analysis
All turnover in the Group in the current and prior year is derived from the sales to the one customer, which is included in the Gold mining
segment.
2012 Unattributed
Head Office Gold Other
Costs Mining Activity Total
£’000 £’000 £’000 £’000
Turnover - 54,925 - 54,925 
Mining - (35,686) - (35,686)
Processing - (10,281) - (10,281)
Gold duty - (1,660) - (1,660)
Overheads - (5,917) - (5,917)
Cost of sales - (53,544) - (53,544)
Gross Profit - 1,381 - 1,381 
Administrative expenses (1,769) (829) (164) (2,762)
Foreign exchange gains - 1,334 - 1,334 
Depreciation and amortisation (1,971) (4,560) (20) (6,551)
Underlying operating loss (3,740) (2,674) (184) (6,598)
Impairment -- - -
Inventory obsolescence write back - 47 - 47 
Gain on disposal of assets - 27 27 
Rehabilitation credit - 45 - 45 
Provision for doubtful debt - (993) - (993)
Share based payments (360) (267) - (627)
Operating loss (4,100) (3,815) (184) (8,099)
Interest receivable and other income 53 12 - 65 
Interest payable and similar charges (51) (54) (6) (111)
Net loss before taxation (4,098) (3,857) (190) (8,145)
Taxation 1,075 - - 1,075 
Loss for the period (3,023) (3,857) (190) (7,070)
Other Segment Items
Additions to intangible assets - 4,164 - 4,164 
Additions to  property, plant, and equipment - 7,245 - 7,245 
Additions to mine properties and development - 4,952 - 4,952 
Current assets 502 15,856 233 16,591 
Non currents assets 29,437 44,447 185 74,069 
Current liabilities (192) (12,114) (9) (12,315)
Non current liabilities (7,074) (3,336) - (10,410) Overview Performance Governance Financial Statements & Other Information
61
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4. Turnover and Segmental Analysis continued
2011 Unattributed
Head Office Gold Other
Costs Mining Activity Total
£’000 £’000 £’000 £’000
Turnover - 47,964 - 47,964 
Mining - (29,731) - (29,731)
Processing - (9,144) - (9,144)
Gold duty - (1,440) - (1,440)
Overheads - (4,403) - (4,403)
Cost of sales - (44,718) - (44,718)
Gross profit - 3,246 - 3,246 
Administrative expenses (1,880) (244) (177) (2,301)
Foreign exchange gains - 1,592 - 1,592 
Depreciation and amortisation expense (2,447) (3,595) (32) (6,074)
Underlying operating (loss) / profit (4,327) 999 (209) (3,537)
Inventory obsolescence write back - 179 - 179 
Rehabilitation charge - - - - 
Provision for doubtful debt write back - 242 - 242 
Share based payments expense (128) (680) - (808)
Operating (loss) / profit (4,455) 740 (209) (3,924)
Interest receivable and other income 63 26 9 98 
Interest payable and similar charges (45) (59) (3) (107)
Net (loss) / profit before taxation (4,437) 707 (203) (3,933)
Taxation 1,618 - - 1,618 
(Loss) / profit for the period (2,819) 707 (203) (2,315)
Other Segment Items
Additions to intangible assets - 2,667 - 2,667 
Additions to property, plant, and equipment - 6,521 11 6,532 
Additions to mine properties and development - 1,898 - 1,898 
Current assets 5,122 17,555 43 22,720 
Non currents assets 31,351 32,946 248 64,545 
Current liabilities (197) (6,250) (9) (6,456)
Non current liabilities (8,116) (4,155) - (12,271) 62
Notes to the Financial Statements continued
Financial Statements & Other Information
Annual Report and Accounts 2012
www.vgmplc.com
5. Cost of sales
Group 2012 2011
£’000 £’000
Mining (35,686) (29,731)
Metallurgy (10,281) (9,144)
Gold duty (1,660) (1,440)
Bullion assay (147) (141)
Technical Services (823) (421)
Resource engineering (1,030) (1,028)
Supply and security (726) (623)
Human resources (88) (78)
Community & Housing (1,256) (1,112) 
Safety training and environment (491) (292)
Mine general administration (1,356) (708)
(53,544) (44,718)
6. Operating loss
Group 2012 2011
£’000 £’000
Operating loss is stated after charging:
– Auditors’ remuneration
Audit-related assurance services - Current year 86 97 
Audit-related assurance services - Prior year under provision 25 128 
Taxation compliance services 12 10 
Non-audit services - Interim review 10 10 
Non-audit services - Other 2 5 
Auditors’ remuneration payable to subsidiary auditors 29 24 
– Share based payments expense granted by the Company 627 808 
– Depreciation of property, plant and equipment 3,991 3,140 
– Depreciation of mining properties and development 566 432 
– Amortisation of intangible assets 1,994 2,502 
– Operating lease expenses: motor vehicles 41 135 
– Operating lease expenses: mining 17 34  Overview Performance Governance Financial Statements & Other Information
63
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7. Employees
The average monthly number of persons (including directors) employed by the Group during the year was:
Group 2012 2011
Number Number
Productive labour 1,261 1,013 
Office and management 197 137 
1,458 1,150 
Employment costs 2012 2011
£’000 £’000
Wages and salaries 10,518 7,926 
Social security 624 509 
Share based payments expense 627 808 
11,769 9,243 
Directors’ remuneration 2012 2011
£’000 £’000
I C Orr-Ewing 60 60 
D K Paxton 167 170 
K C Morzaria 128 119 
D A Lenigas * 8 45 
J I Stalker 59 97 
J F Kearney 24 24 
J A MacPherson 25 24 
471 539 
* D A Lenigas stepped down as an executive director in April 2011, and was appointed as a non-executive director.  On 4th January 
2012, D A Lenigas resigned as a director.
Directors remuneration in 2012 solely consisted of salaries, and as at 31 August 2012 (2011: nil) there were no directors accruing
benefits under a money pension scheme.  No options were granted to directors during the year, and no options were exercised by the
directors.
8. Interest receivable/payable and similar charges
Interest receivable and other income 2012 2011
£’000 £’000
Bank interest 65 94 
Other - 4 
65 98
Interest payable and similar charges 2012 2011
£’000 £’000
Interest and bank charges 14 18 
Interest on convertible loan notes 51 45 
Unwinding of discount for mine rehabilitation 46 44 
111 107 64
Notes to the Financial Statements continued
Financial Statements & Other Information
Annual Report and Accounts 2012
www.vgmplc.com
9. Taxation
2012 2011
£’000 £’000
Current taxation - - 
Deferred taxation - effect of change in tax rate (622) (1,006)
Deferred taxation - current year (453) (612)
(1,075) (1,618)
Factors affecting tax charge:
(Loss) / profit before tax (8,145) (3,933)
Tax at 27.17% (2011: 27.17%) (2,050) (1,069)
Effects of:
- Non deductible expenses 595 161 
- Tax losses for which no deferred income tax was recognised 556 556 
- Rate adjustment (1,691) (998)
- Tax effect of income not subject to income Tax 1,515 (268)
(1,075) (1,618)
The deferred taxation credit arises on the release of the deferred tax liability (note 32).
The Finance Act 2012, which was substantively enacted on 17 July 2012, has reduced the main corporation tax rate to 24% from 1 April
2012 and to 23% from 1 April 2013.  The further decrease to 21% or lower from 1 April 2014 is not expected to be substantively
enacted until a future Finance Bill is approved.  This reduction has not been taken into account when calculating deferred tax assets and
liabilities at present. The changes are not expected to have a material cash impact on the Company.
The Group has estimated tax benefits in respect of tax losses of £1,704,000 (2011: £4,595,000), of which £565,000 will fully expire
within 4 years, and other net deferred tax benefits in respect of temporary differences of £1,764,000 (2011: £685,000) which have not
been recognised as a deferred tax asset.
10. Loss for the year
The Company’s loss for the year dealt within the accounts of Vatukoula Gold Mines Plc. was £587,094 (2011: £2,391,889). As provided
by S408 of the Companies Act 2006, no Statement of Comprehensive Income is presented in respect of Vatukoula Gold Mines Plc.
11. Loss per share
(a) Basic
The calculation of consolidated earnings per share is based on the following earnings and number of shares:
2012 2011
£’000 £’000
Loss after tax (7,070) (2,315)
2012 2011
Number Number
Basic weighted average ordinary shares in issue during the period 90,509,159 84,015,905
2012 2011
Pence Pence
Basic loss per share (7.81) (2.76)
Basic loss per share is calculated by dividing the loss for the year from continuing operations of the Group by the weighted average
number of ordinary shares in issue during the year.   Overview Performance Governance Financial Statements & Other Information
65
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11. Loss per share continued
b. Diluted
All potential shares were anti-dilutive as the Group was in a loss market position. As a result diluted loss per share for the years ended
31 August 2012 and 31 August 2011 is disclosed as the same value as basic loss per share. The diluted weighted average ordinary
shares in issue during the period was 90,509,159 (2011: 84,015,905).
2012 2011
£’000 £’000
Loss after tax (7,070) (2,315)
Interest expense on convertible loan note (net of tax) -   -   
Loss used to determine diluted earnings per share (7,070) (2,315)
2012 2011
Number Number
Basic weighted average ordinary shares in issue during the period 90,509,159 84,015,905
Adjustments for:
Assumed conversion of convertible loan note -   -   
Share options / warrants -   -   
Diluted weighted average ordinary shares in issue during the period 90,509,159 84,015,905
2012 2011
Pence Pence
Diluted (loss) / earnings per share (7.81) (2.76)
Subsequent to the year end, the company issued an additional 20,000,000 new ordinary shares in a private placing.  66
Notes to the Financial Statements continued
Financial Statements & Other Information
Annual Report and Accounts 2012
www.vgmplc.com
12. Intangible assets
Group Mining Computer Exploration
Rights software expenditure Total
£’000 £’000 £’000 £’000
Cost
As at 1 September 2011 38,414 243 2,769 41,426 
Additions - - 4,164 4,164 
Disposals - - (111) (111)
Transferred from property, plant and equipment 307 299 - 606 
Exchange difference - 9 111 120 
As at 31 August 2012 38,721 551 6,933 46,205 
Amortisation
As at 1 September 2011 7,313 56 - 7,369 
Current charge 1,971 23 - 1,994 
Exchange difference - 1 - 1 
As at 31 August 2012 9,284 80 - 9,364 
Carrying value as at 31 August 2012 29,437 471 6,933 36,841 
Group Mining Computer Exploration
Rights software expenditure Total
£’000 £’000 £’000 £’000
Cost
As at 1 September 2010 38,414 140 36 38,590 
Additions - - 2,667 2,667 
Transferred from tangible assets - 97 27 124 
Exchange difference - 6 39 45 
As at 31 August 2011 38,414 243 2,769 41,426 
Amortisation
As at 1 September 2010 4,866 - - 4,866 
Current charge 2,447 55 - 2,502 
Exchange difference - 1 - 1 
As at 31 August 2011 7,313 56 - 7,369
Carrying value as at 31 August 2011 31,101 187 2,769 34,057 Overview Performance Governance Financial Statements & Other Information
67
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12. Intangible assets continued
The Mining rights represent the mining rights acquired on the acquisition of the Vatukoula Gold Mine in April 2008. The amortisation of
the Mining Rights is calculated on a unit of production basis, based on forecast production and the total Mineral Reserves.  At the
current production, reserves and gold price, the economic useful life is expected to be 7 years. This rate will vary from year to year and
is dependent on the mineral reserves which are reassessed every year.   Amortisation is included in depreciation and amortisation in the
Statement of Comprehensive Income.
The directors believe that there have been no indicators of impairment for the year ended 31 August 2012 (and 31 August 2011).
A deferred tax liability of £10,757,000 arose in 2008 in respect of the intangible assets recognised on the acquisition in the prior periods.
The deferred tax liability is in respect of future taxable profits potentially generated from the exploration of the mining rights (Note 32).
The Exploration expenditure is an internally generated intangible asset, and represents costs associated with the exploration and
evaluation of mineral deposits on our mining and special prospecting licenses and are capitalised in accordance with IFRS 6.  The
directors believe that there have been no indicators of impairment for the year ended 31 August 2012 (and 31 August 2011).
The Computer Software expenditure represents the costs associated with the purchase of specialised mining and inventory software. 
13. Property, plant and equipment
Group Freehold Fixtures
and fittings
leasehold Work in Plant Motor Mine and
land progress machinery vehicles assets equipment Total
£’000 £’000 £’000 £’000 £’000 £’000 £’000
Cost
As at 1 September 2011 1,165 201 28,087 370 2,869 148 32,840 
Additions - 7,245 - - - - 7,245 
Transferred on completion 90 (4,607) 4,517 - - - -
Disposals - - (122) - - - (122)
Changes in estimates - - - - (932) - (932)
Transferred to intangible (250) (299) - - - - (549) 
Exchange difference 19 32 984 (29) 61 (3) 1,064 
As at 31 August 2012 1,024 2,572 33,466 341 1,998 145 39,546 
Accumulated depreciation 
As at 1 September 2011 - - 8,643 251 315 98 9,307 
Charge for the period 13 - 3,835 2 139 2 3,991 
Disposals - - (27) - - - (27)
Exchange difference - - 570 (15) 9 (2) 562 
As at 31 August 2012 13 - 13,021 238 463 98 13,833 
Net book value
At 31 August 2012 1,011 2,572 20,445 103 1,535 47 25,713
At 31 August 2011 1,165 201 19,444 119 2,554 50 23,533 68
Notes to the Financial Statements continued
Financial Statements & Other Information
Annual Report and Accounts 2012
www.vgmplc.com
13. Property, plant and equipment continued
Group Freehold Fixtures
and fittings
leasehold Work in Plant Motor Mine and
land progress machinery vehicles assets equipment Total
£’000 £’000 £’000 £’000 £’000 £’000 £’000
Cost
As at 1 September 2010 1,134 2,881 18,399 405 3,086 148 26,053 
Additions - 6,521 1 10 - - 6,532 
Transferred on completion - (9,172) 9,172 - - - - 
Disposals - - - (53) - (1) (54)
Revaluation - - - - (331) - (331)
Transfer to Mine Properties 
and development - - (946) - - - (946)
Transferred to intangible - (97) - - - - (97)
Exchange difference 31 68 1,461 8 114 1 1,683 
As at 31 August 2011 1,165 201 28,087 370 2,869 148 32,840 
Accumulated depreciation 
As at 1 September 2010 - - 4,793 287 154 96 5,330 
Charge for the period - -  2,976 8 153 3 3,140 
Disposals - - - (48) - (1) (49)
Transfer to Mine Properties 
and development - - (32) - - - (32)
Transferred to intangible - - 27 - - - 27 
Exchange difference - - 879 4 8 - 891 
As at 31 August 2011 - - 8,643 251 315 98 9,307 
Net book value
At 31 August 2011 1,165 201 19,444 119 2,554 50 23,533 
At 31 August 2010 1,134 2,881 13,606 118 2,932 52 20,723 
Company Freehold land Total
£’000 £’000
Cost
As at 1 September 2011 250 250 
Transfers to investments in subsidiaries (250) (250) 
As at 31 August 2012 --
Accumulated depreciation
As at 1 September 2011 and as at 31 August 2012 - -
Net book value
At 31 August 2012 - -
At 31 August 2011 250 250 
Cost
As at 1 September 2010 and as at 31 August 2011 250 250 
Net book value
At 31 August 2011 250 250 
At 31 August 2010 250 250  Overview Performance Governance Financial Statements & Other Information
69
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14. Mine properties and development
2012 2011
£’000 £’000
Cost
Balance as at 1 September 8,695 5,614 
Additions 4,952 1,898 
Transfers from Property, Plant and Equipment - 946 
Foreign exchange difference 218 237 
Balance at end of period 13,865 8,695 
Depreciation
Balance as at 1 September 1,740 1,227 
Current charge 566 432 
Transfers from Property, Plant and Equipment - 32 
Foreign exchange difference 44 49 
Balance at end of period 2,350 1,740 
Carrying value
Balance at end of period 11,515 6,955 
During the current year the company invested £4,952,000 (2011: £1,898,000) in underground capital development.
15. Available for sale investments
Group Company
2012 2011 2012 2011
£’000 £’000 £’000 £’000
Cost
As at 1 September 400 477 400 400 
Written off - (77) - - 
As at 31 August 400 400 400 400 
Provision for diminution in value
As at 1 September (400) (477) (400) (400)
Written off - 77 - - 
As at 31 August (400) (400) (400) (400)
Net book value at 31 August - - - -
Available for sale investments constitute holdings in the following entities:
Name of business Country of incorporation Principal activities % held 
Lesotho Diamonds Corporation Gibraltar Mining 0.5 
In April 2007, the Company acquired 1,212,121 new ordinary shares in Lesotho Diamond Corporation for £400,000. The company was
subsequently renamed Global Diamonds Resources (“GDR”). Operations ceased at the mine due to a lack of funding on the 5th of
January 2010. During the prior year GDR has gone into liquidation and therefore the Directors of the Company thought it was
appropriate to continue to provide fully for this investment. 70
Notes to the Financial Statements continued
Financial Statements & Other Information
Annual Report and Accounts 2012
www.vgmplc.com
15. Available for sale investments continued
In the year ended 31 August 2003, River Diamonds Ltd, a wholly owned subsidiary of Vatukoula Gold Mines Plc. purchased £77,000 of
new ordinary shares in Cambrian Forestry Products. In 2004 the Company provided fully for this investment as it was undergoing
restructuring.  On 14 April 2009 Cambrian Forestry Products was dissolved.
These investments were initially measured at cost. This is because the directors consider that its fair value cannot be measured reliably
as the investments are not quoted on an active market.
16. Investment in subsidiary companies
Company 2012 2011
£’000 £’000
Cost
As at 1 September 48,539 39,489
Transfers from property, plant and equipment 250 -
Additions in the year: Share based payments to subsidiary companies 267 664 
Additions in the year: Equity capital contribution 2,249 8,386 
Balance as at 31 August 51,305 48,539
Impairment
As at 1 September 1,810 1,810
Charge for the year --
Balance as at 31 August 1,810 1,810 
Net book value
Balance as at 31 August 49,495 46,729 
Details of the subsidiaries:
Name of business Country of incorporation Principal activities % held 
Viso Gero International Inc BVI Holding company 100
Vatukoula Gold Pty Ltd Australia Holding company 100
Vatukoula Australia Australia Holding company 100
Vatukoula Finance Pty Ltd Australia Holding company 100
Koula Mining Company Fiji Dormant 100
Jubilee Mining Company Fiji Dormant 100
Vatukoula Gold Mine Ltd Fiji Mining 100
River Diamonds UK Ltd England & Wales Holding Company 100
Panguma Diamonds Ltd Sierra Leone Dormant 100
São Carlos Mineração Limitada * Brazil Exploration 100
* The investment in this entity is held by River Diamonds UK Ltd, a 100% owned subsidiary of the Company.
Investments in subsidiary companies are measured at cost, less accumulated provisions for impairments. Overview Performance Governance Financial Statements & Other Information
71
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17. Inventories
Group 2012 2011
£’000 £’000
Consumables stores 5,990 5,003 
Allowances for inventory obsolescence (278) (430)
Total consumables stores 5,712 4,573 
Insurance spares 22 249 
Allowances for obsolescence (22) (249)
Total insurance spares - - 
Gold in circuit and gold stock 2,059 3,461 
As at 31 August 7,771 8,034 
A reversal of a write-down of inventories amounted to £46,726 (2011: £178,811).  Inventory previously been written off has been
reassessed as useful for production.
18. Trade and other receivables
Group Company
2012 2011 2012 2011
£’000 £’000 £’000 £’000
Trade receivables 2,131 2,088 - - 
Amounts owed by group undertakings - - 24,260 16,735 
Prepayments 3,050 3,917 120 57 
Other receivables 5,115 4,650 552 740 
10,296 10,655 24,932 17,532 
Less: Provision for doubtful debts (3,913) (2,861) (500) (500)
6,383 7,794 24,432 17,032 
Trade receivables are amounts due from the sales of gold. The average credit period taken on sales of goods is two weeks (2011: two
weeks).
The provision for doubtful debts includes £2.5 million (2011: £2.5 million) in relation to the prepayments against the claimed tax liabilities
of F$ 11.5 million by The Fiji Islands Revenue & Customs Authority.  The prepayment ceased in December 2008 and none have been
made since this date. However, given the time the court case has been outstanding and that currently there is no date in the court
diaries for this matter to be heard it was thought prudent that the Company provide for any prepayments made in relation to this tax
assessment. The Fiji Islands Revenue & Customs Authority has recognised the prepayment of the claimed tax liability.
The Group has significant concentration of credit risk with its single customer in respect of bullion sales. The Group has credit risk
management policies in place and exposure to credit risk is monitored on an ongoing basis. Management generally adopts conservative
strategies and tight control in credit policy.
The following table provides an analysis of trade and other receivables that were past due as at 31 August 2011, but not provided for,
followed by those past due and impaired.  Subsequent to the year, all trade receivables of over 93 days have been paid. The Group
believe that all the balances are ultimately recoverable. 72
Notes to the Financial Statements continued
Financial Statements & Other Information
Annual Report and Accounts 2012
www.vgmplc.com
18. Trade and other receivables continued
Group Company
2012 2011 2012 2011
£’000 £’000 £’000 £’000
Not impaired
Due 0-31 days 3,807 2,743 52 241 
Past due 32-62 days 265 244 - - 
Past due 63 – 92 days 23 568 - - 
Past due more than 93 days 158 322 - - 
4,253 3,877 52 241 
Impaired
Past due more than 93 days 2,994 2,861 500 500 
Provision for doubtful debts (2,994) (2,861) (500) (500)
- - - - 
4,253   3,877 52 241 
The credit quality of the Group’s customers is monitored on an ongoing basis and assessed for impairment where indicators of such
impairment exist.
The movement in provision for doubtful debts has been credited to the Statement of Comprehensive Income, after eliminating a foreign
exchange gain arising on consolidation to the amount of £59,000.  
19. Cash and cash equivalents
Group Company
2012 2011 2012 2011
£’000 £’000 £’000 £’000
Cash at bank and in hand 2,437 6,892 270 4,774 
2,437 6,892 270 4,774
At 31 August 2012 management believes that the carrying amount of cash equivalents approximates to fair value because of the short
maturity of these financial instruments.  
20. Share capital
(a) Share capital
Group and Company
2012 2011
£’000 £’000
Allotted, issued and fully paid
96,558,339 ordinary shares of 5p each
(31 Aug 2011: 87,558,339 ordinary shares of 5p each) 4,828 4,378 Overview Performance Governance Financial Statements & Other Information
73
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20. Share capital continued
(b) Share issues during the year
Value of
Issue Par value Share shares
value per per premium Share Share issued for
Share Share per Share Shares Capital premium cash
Date £ £ £ £ £ £
Shares issued
for cash
Issue for cash 03/05/2012 0.60 0.05 0.55 9,000,000 450,000 4,950,000 5,400,000
9,000,000 450,000 4,950,000 5,400,000
(c) Warrants and options
During the year ended 31 August 2012 the following movements occurred on the warrants and options to purchase 5p ordinary shares
in Vatukoula Gold Mines Plc. 
Number 
of
Average Number Number Number Number Number Number Number Number warrants Number Number Number
exercise of of of of of of of of and of of of
price per options options options options options options options options options options options warrants
Exercise Price share £0.50 £0.60 £0.70 £0.77 £0.88 £0.90 £0.95 £0.97 £1.00 £1.39 £1.75 £3.00 Total
Balance at 
1 September 2011 1.1 863,000 - - - 235,000 400,000 365,000 700,000 4,200,000 484,112 - - 7,247,112 
Granted during 
the period 0.8 - - 360,000 9,000,000 - - - - - - 800,000 - 10,160,000 
Exercised during 
the period -   - - - - - - - - - - - - - 
Expired during 
the period 0.8 - - - (9,000,000) - - - - - - - - (9,000,000)
Balance at 
31 August 2012 1.1 863,000 - 360,000 - 235,000 400,000 365,000 700,000 4,200,000 484,112 800,000 - 8,407,112
Number 
of
Average Number Number Number Number Number Number Number Number warrants Number Number Number
exercise of of of of of of of of and of of of
price per optionswarrants options optionswarrants options options options options options options warrants
Exercise Price share £0.50 £0.60 £0.70 £0.77 £0.88 £0.90 £0.95 £0.97 £1.00 £1.39 £1.75 £3.00 Total
Balance at 
1 September 2010 1.1 1,378,000 280,518 - - - 400,000 - - 5,490,000 - - 841,858 8,390,376 
Granted during 
the period 1.1 - - - - 235,000 - 365,000 700,000 - 484,112 - - 1,784,112 
Exercised during 
the period 0.8 (515,000) (280,518) - - - - - - (1,290,000) - - - (2,085,518)
Expired during 
the period 3.0 - - - - - - - - - - - (841,858)(841,858)
Balance at 
31 August 2011 1.1 863,000 -   -   -   235,000 400,000 365,000 700,000 4,200,000 484,112 - -   7,247,112 74
Notes to the Financial Statements continued
Financial Statements & Other Information
Annual Report and Accounts 2012
www.vgmplc.com
20. Share capital continued
(c) Warrants and options continued
The following main conditions apply to all options and warrants currently on issue and granted during the year.
Management options vest over 3 years from date off grant, however should the grantee resign or be dismissed prior to the first
anniversary of his or her employment the options will cease. Directors’ options vest immediately and there are no performance
conditions associated with the options.
Warrants were granted to professional advisors in lieu of services. All the warrants vested immediately on grant.
The options granted during the year to directors, staff and advisors were as follows:  
• On 8 February 2012 – 360,000 options to the mine management in Fiji. Each option carries the right to subscribe for 1 ordinary share 
of £0.05 each in the capital of the Company at a price of £0.70, exercisable up to five years after the commencement of employment 
with the Company; and
• On 8 February 2012 – 800,000 options to strategic advisors. Each option carries the right to subscribe for 1 ordinary share of £0.05 
each in the capital of the Company at a price of £1.75, exercisable up to 3 years after the grant date of the option; and
• On 24 April 2012 – 9,000,000 options to a strategic investor. Each option carries the right to subscribe for 1 ordinary share of £0.05 
each in the capital of the Company at a price of £0.77.  The options expired on 23 July 2012.
The total share-based payment expense in the year for the Group was £627,388 (2011: £807,592 ), and 7,480,445 (2011: 6,347,112)
options are exercisable at the year end. No options were forfeited during the year (2011: NIL)
The following table lists the inputs used for the option issues which occurred during the year:
Grant date 08/02/2012 08/02/2012 24/04/2012
Dividend yield 0% 0% 0%
Expected volatility 65% 65% 65%
Risk-free interest rate 1.75% 2.75% 1.75%
Expected life of options 5 years 3 years 3 months
Exercise price £0.70 £1.75 £0.77
Price at grant date £0.89 £0.89 £0.52
The model used to arrive at the fair value of all the options granted during the year was the Black Scholes option pricing model.  The
weighted average fair value of the options granted during the current year was determined as £0.05 per option.
The weighted average remaining contractual life of the 8.4 million options outstanding at the balance sheet date is 2.3 years (2011: 3.4
years).  The weighted average share price during the year was £0.59 (2011: £1.59) per share.
The expected volatility of the options reflects the assumption that historical volatility is indicative of future trends, which may not
necessarily be the actual outcome.  The expected life of the options is based on historical data available at the time of the option issue
and is not necessarily indicative of future trends, which may not necessarily be the actual outcome.
The share option scheme and the warrants on issue is an equity settled plan and fair value is measured at the grant date of the option.
21. Trade and other payables
Group Company
2012 2011 2012 2011
£’000 £’000 £’000 £’000
Trade payables 9,828 4,066 51 80 
Accruals and other payables 225 163 142 117 
10,053 4,229 193 197  Overview Performance Governance Financial Statements & Other Information
75
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22. Provisions
Group
2012 2011
£’000 £’000
Current
Provision for annual leave 272 224 
Provision for workers compensation 137 63 
Other employee related provisions 664 377 
1,073 664 
Non current
Provision for mine rehabilitation 3,247 4,092 
Provision for Long Service Leave 73 49 
3,320 4,141 
4,393 4,805 
Group Employee
related Mine Long
provisions rehabilitation service leave Total
£’000 £’000 £’000 £’000
Balance at 1 September 2011 664 4,092 49 4,805 
Additional provisions made during the period 2,795 - 77 2,872 
Reversed during the period (2,406) (46) (55) (2,507)
Unwinding of discount - 46 - 46
Changes in estimates - (932) - (932)
Exchange difference 20 87 2 109 
Balance at 31 August 2012 1,073 3,247 73 4,393 
Group Employee
related Mine Long
provisions rehabilitation service leave Total
£’000 £’000 £’000 £’000
Balance at 1 September 2010 528 4,220 - 4,748 
Additional provisions made during the period 190 - 49 239 
Reversed during the period (4) - - (4)
Unwinding of discount - 44 - 44
Changes in estimates - (331) - (331)
Exchange difference (50) 159 - 109 
Balance at 31 August 2011 664 4,092 49 4,805  76
Notes to the Financial Statements continued
Financial Statements & Other Information
Annual Report and Accounts 2012
www.vgmplc.com
22. Provisions continued
Employee related provisions include a provision for unpaid annual leave based on Fijian labour legislation, and a provision for legally
required workers compensation relating to work injuries.  Based on current estimates, these are expected to realise in approximately 10
years. 
The provision for mine rehabilitation represents the current mine closure plan. The present value of the estimated cost is capitalised as
property, plant and equipment. Over time the discounted liability will be increased for the change in the present value based on the
discount rates that reflect the current market assessments and the risks specific to the liability. The provision for Mine Rehabilitation is
expected to be expensed over the life of mine which is currently 7 years (2011: 11 years). The life of mine is dependent on the economic
viability of extracting the contained Mineral Resources and may vary on a year by year basis dependant on the mining / processing
costs and the price of Gold. In addition the quantum of the provision may vary on a year by year basis dependant on the costs
associated with executing the Mine Rehabilitation Plan. 
Long service leave is a contractual obligation for additional leave days earned by employees with 10 years or more service.  Based on
current estimates, these are expected to realise in approximately 10 years. 
23. Borrowings
Group
2012 2011
£’000 £’000
Current
Finance lease  liability (note 30) - 5
- 5 
Finance lease liability
The finance lease liability is secured by master lease agreement and a charge over leased assets.
The finance lease is repayable by monthly instalments of £ 987 and interest is being charged at the rate of 14% per annum and was fully
repaid in January 2012.
24. Vatukoula Social Assistance Trust Fund  
Group
2012 2011
£’000 £’000
Current
Vatukoula Social Assistance Trust Fund 1,189 1,558
1,189 1,558
Non Current
Vatukoula Social Assistance Trust Fund 15 13 
15 13
The Vatukoula Social Assistance Trust Fund (“VSATF”) was established for the purpose of social assistance for the employees made
redundant by the previous mine operator and the local mining community in accordance with the Trust Deed dated 18 December 2009.
The VSATF is part of the Vatukoula Trust Deed, a binding contract between the Company’s wholly owned subsidiary and the Fijian
Ministry of Lands and Mineral Resources.  A total of F$6million is payable of which the Group paid F$1.5 million on 10 March 2010 and
F$1.125 million on 31 December 2011.  The remaining F$3.375 million has been allocated to Current and Non Current Liabilities as
follows: Overview Performance Governance Financial Statements & Other Information
77
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24. Vatukoula Social Assistance Trust Fund continued
F$’000 £’000
Current
Redundancy payment due within 1 year 3,325 1,189 
3,325 1,189 
Non Current
Instalments according to Trust Deed due more than 1 year 50 18  
50 18 
3,375 1,207 
The non current portion of the liability has been discounted to the net present value of the future cash flows at £15,000.
25. Convertible loans
(i) On 26 June 2009, the Group issued a fully redeemable convertible loan note for £485,000 repayable in cash 5 years after the date of 
grant. The loan note carries a coupon rate of 11% per annum.  The loan note will be convertible at £0.50 equating to 970,000 shares 
in Vatukoula Gold Mines Plc.  During the year no convertible loan notes were converted to ordinary shares. During 2011 £25,000 of 
these convertible loan notes were converted to 50,000 new ordinary shares in the Company; £2,500 was credited to ordinary share 
capital and £22,500 was credited to share premium. £8,000 has been debited from the equity component upon conversion.
The net proceeds from the issue of the convertible loans have been split between the liability element and an equity component as
follows:
Group and Company
2012 2011
£’000 £’000
Nominal value 362 386 
Equity component (45) (45)
317 341
(ii)The movement in the liability component of the convertible loan note is as follows:
Group and Company
2012 2011
£’000 £’000
Balance at 1 September 341 332 
Conversion of  loan notes - (25)
Released into equity on conversion - 2 
Unwind discounted present value of liability 9 8 
Principal interest 42 37 
Interest paid (75) (13)
Balance at 31 August 317 341 78
Notes to the Financial Statements continued
Financial Statements & Other Information
Annual Report and Accounts 2012
www.vgmplc.com
26. Financial instruments and risk management objectives and policies
The accounting policies for financial instruments have been applied to the line items below:
Group
2012 2011
£’000 £’000
Loans and receivables
Trade and other receivables 4,253 3,877 
Cash and cash equivalents 2,437 6,892
6,690 10,769 
£’000 £’000
Financial liabilities measured at amortised cost
Trade and other payables 9,828 4,066 
Borrowings - 5 
Convertible loan notes 317 341 
10,145 4,412
Company
2012 2011
£’000 £’000
Loans and receivables
Trade and other receivables 172 297 
Cash and cash equivalents 270 4,774 
442 5,071
£’000 £’000
Financial liabilities measured at amortised cost
Trade and other payables 51 80 
Convertible loan notes 317 341 
368 421
Loans and receivables are measured using the amortised cost method.  Available for sale financial instruments are initially recognised at
fair value and subsequently remeasured to fair value at each year end, with any change in value recognised directly in equity, unless the
instruments are unable to be reliably fair valued, in which case they are stated at cost.
The Group and Company’s activities expose it to a variety of financial risks; currency risk, credit risk, liquidity risk and cash flow interest
rate risk.  The policies for managing these risks are regularly reviewed and agreed by the Board.  It is, and has been throughout the
period under review, the Group and Company’s policy that no trading in financial instruments should be undertaken.  Overview Performance Governance Financial Statements & Other Information
79
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26. Financial instruments and risk management objectives and policies continued
(i) Currency rate risk
Loans between companies which are members of the Vatukoula Gold Mines Plc  group are made in the operating currency of the
lending company.  In all other respects, the policy for all group companies is that they only trade in their principal operating currency,
except in exceptional circumstances from time to time.
The Group’s revenue derives from the sale of gold bullion by its Fijian operating subsidiary.  Proceeds of gold bullion sales are received
in US Dollars.  As the group reports in Sterling, reported revenue is affected by the combination of changes in the US Dollar/Fijian Dollar
and Sterling/Fijian Dollar rates.
The Group’s expenses in Fiji and Brazil are incurred in Fiji Dollars and Reals respectively.  Any weakening in the Fijian Dollar/Reals would
result in a reduction in expenses in Sterling terms, which would be to the Group’s advantage.  There is an equivalent downside risk to
the group of strengthening in the Fijian Dollar/Reals which would increase Brazilian operating expenses in Sterling terms.  The following
table illustrates the allocation of financial instruments across currencies:
Class 2012 2011
£ Brazilian Australian US Fiji £ Brazilian Australian US Fiji
Sterling Real Dollar Dollar Dollar Sterling Real Dollar Dollar Dollar
£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
Financial
assets 
Trade
receivables 172 29 - 2,102 - 298 36 - 2,052 -
Cash and 
cash
equivalents 301 195 29 171 1,741 4,805 1 19 559 1,508
Financial
liabilities
Trade
payables 74 6 2,244 146 7,353 56 6 - 15 3,964
Borrowings - - - - - - - - - 5
Convertible
loan notes 317 - - - - 341 - - - -
The following table illustrates the Group’s sensitivity to the fluctuation of the major currencies in which it transacts.  A 15% increase has
been applied to each currency in the table below, representing management’s assessment of a reasonably possible change in foreign
exchange rates:
Group
2012 2011
£’000 £’000
Financial assets
Impact on profit after tax on 15% increase in Fijian Dollar fx rate against Sterling 261 226 
Impact on profit after tax on 15% decrease in Fijian Dollar fx rate against Sterling (261) (226)
Impact on profit after tax on 15% increase in Reals fx rate against Sterling 34 6 
Impact on profit after tax on 15% decrease in Reals fx rate against Sterling (34) (6)
Financial  liabilities
Impact on profit after tax on 15% increase in Fijian Dollar fx rate against Sterling (1,103) (595)
Impact on profit after tax on 15% decrease in Fijian Dollar fx rate against Sterling 1,103 595 
Impact on profit after tax on 15% increase in Reals fx rate against Sterling (1) (1)
Impact on profit after tax on 15% decrease in Reals fx rate against Sterling 1 1  80
Notes to the Financial Statements continued
Financial Statements & Other Information
Annual Report and Accounts 2012
www.vgmplc.com
26. Financial instruments and risk management objectives and policies continued
For currency rate risk, the Company's exposure is considered to not be significant because as it does not hold any financial instruments
denominated in foreign currencies and therefore quantitative information has not been provided.
(ii) Interest rate risk
Interest rate exposure arises mainly from cash holdings.  Contractual agreements entered into at floating rates expose the entity to cash
flow risk whilst the fixed rate borrowings expose the entity to fair value risk. 
The table below shows the Group’s financial assets and liabilities split by those bearing fixed and floating rates and those that are non-
interest bearing.
Class Categories 2012 2011
Floating Fixed Non-interest Floating Fixed Non-interest
rate rate bearing rate rate bearing
£’000 £’000 £’000 £’000 £’000 £’000
Financial assets
Trade receivables - - 2,131 - - 2,088 
Other receivables - - 4,252 - - 5,706 
Cash and cash equivalents 2,437 - - 6,892 - - 
Financial liabilities
Trade payables - - 9,828 - - 4,066 
Accruals - - 225 - - 163 
Finance lease liability - - - - 5 - 
Convertible loan notes - 317 - - 341 - 
The fair value of all financial instruments is approximately equal to book value due to their short term nature and the fact that they bear
interest at floating rates based on the local bank rate.
If interest rates had been 1% higher/lower and all other variables held constant, the Group’s loss for the year ended 31 August 2012
would increase/decrease by  £46,645 (2011: loss would increase/decrease by £ 93,853 ).
For interest rate risk, the Company's exposure is considered to not be significant as it only holds cash and cash equivalents at a floating
rate and therefore quantitative information has not been provided.
(iii) Credit risk
Credit risk arises from trade receivables and cash and cash equivalents.  Credit exposure is measured on a Group and Company basis.
The Group and Company’s maximum exposure to credit risk relating to its financial assets is given in Note 18.
(iv) Gold price risk
The Group’s policy is to sell gold at spot.  The Group is exposed to gold price risk through gold price fluctuations.
An increase/decrease of 25% in the spot price of gold at 31 August 2012, with all other variables held constant, would have the
following impact on the Statement of Comprehensive Income and equity at 31 August 2012:
Statement of 
Comprehensive Income
and equity impact
Increase/(decrease)
£’000
25% increase in the gold spot price 13,668
25% decrease in the gold spot price (13,668) Overview Performance Governance Financial Statements & Other Information
81
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26. Financial instruments and risk management objectives and policies continued
(v) Liquidity risk
Responsibility for liquidity risk management rests with the board of directors, which has established appropriate liquidity risk
frameworks for the management of the Group’s and Company’s short, medium and long term funding and liquidity management
requirements. The Group and Company manages liquidity risk by maintaining adequate reserves and by continuously monitoring
forecast and actual cash flows and by matching maturity profiles of financial assets and liabilities.
The following table details the Group’s maturity profiles of its financial assets and liabilities. The table has been drawn up based on the
undiscounted cash flows of financial liabilities based on the earliest date on which the Group can be required to pay. The table includes
both interest and principle cash flows:
2012 2011
Less than More than Less than More than
one year one year one year one year
£’000 £’000 £’000 £’000
Financial assets
Cash and cash equivalents 2,437 -  6,892 - 
Trade and other receivables 6,383 - 7,794 - 
8,820 - 14,686 - 
Financial Liabilities
Borrowings - - 5 - 
Trade and other payables 10,053 - 4,229 - 
Convertible loan notes - 317 - 341 
10,053 317 4,234 341
For liquidity risk, the Company's exposure is considered to not be significant as its only non-current financial liability is the convertible
loan note and the maturity profile information is provided within the Group’s analysis above.
(vi) Capital risk
The Group’s capital management objectives (defined as net debt plus equity) are to safeguard the Group’s ability to continue as a going
concern in order to provide returns to shareholders and benefits to other stakeholders, while maintaining a strong credit rating and
headroom whilst optimising return to shareholders through an appropriate balance of debt and equity funding.  The Group manages its
capital structure and makes adjustments to it, in light of changes to economic conditions and the strategic objectives of the company.
Given the nature of early stage mining operations, the Group has been predominantly funded by equity. However once the mining
operations are at a sufficiently advanced stage the Group may fund further expansion via debt. The Group includes within net debt
borrowings, convertible loans, trade and other payables, less cash and short term deposits.  
2012 2011
£’000 £’000
Borrowings - 5 
Convertible loan 317 341 
Trade and other payables  10,053 4,229 
Less: Cash and cash equivalents  (2,437) (6,892)
Net debt/(surplus) 7,933 (2,317)
Equity 67,936 68,538 
Net debt/(surplus) plus Equity 75,869 66,221 
To maintain or adjust the capital structure, the Group may issue new shares or return capital shareholders. No changes were made in
the objectives, polices or processes during the year ending 31 August 2011 and 31 August 2012. During the year the Group funded the
expansion of the operations at the mine predominantly via the issue of equity. The board thought this was the most appropriate means
of funding given the stage of development of the Group, and the risks associated with the development of the Vatukoula Gold Mine. 82
Notes to the Financial Statements continued
Financial Statements & Other Information
Annual Report and Accounts 2012
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27. Ultimate controlling party
There was no ultimate controlling party during the year. 
28. Related party transactions
Transactions between the Company and its subsidiaries, which are related parties, have been eliminated on consolidation. Transactions
and balances between related parties are set out below:
In order to fund the expansion of the operations at the Vatukoula Gold Mine, during the current year the Company has loaned an
additional £8,184,283(2011: £10,722,033) to the wholly owned Fijian subsidiary Vatukoula Gold Mines Ltd. The total loan has been
discounted to the net present value of the future cash flows by £8,663,942 (2011: £7,920,898), resulting in a total balance as at 31
August 2012 of  £23,248,370 (2011: £15,807,130). The loan charges interest at 0.5% with effect from 1 September 2011 (2011: 0.5%)
and is repayable in full on 31 August 2016.
During the current year, the company has not loaned an additional amount to Viso Gero International Inc, a wholly owned subsidiary
(2011: £30,522). The loan has been discounted to the net present value of the future cash flows by £381,366, (2011: £464,857), resulting
in a total balance as at 31 August 2012 of £1,011,170 (2011: £ 927,679).  The loan charges interest at 0.5% with effect from 1
September 2011 (2011: 0.5%) and is repayable in full on 31 August 2016. 
During the current year, the company has loaned an additional amount to River Diamonds (UK) Limited, a wholly owned subsidiary, of
£382,875 (2011: £128,063).  The total balance as at 31 August 2012 is £Nil (2011: £Nil). The company has written off £382,875 during
the year ended 31 August 2012 (2011: £436,847). The loan is interest free and does not have any fixed repayment period. 
During the year, the Company paid consultancy fees in respect of director’s fees of £59,000 in (2011: £96,500) to Promaco Ltd, a
company related to J I Stalker, director of Vatukoula Gold Mines Plc.   At the year-end £Nil was payable to Promaco Ltd (2011: £5,500).
The company deems key management personnel to be both the executive and non-executive directors.  Remuneration paid to the
executive directors is disclosed in note 7.
29. Commitments
(a) Details of mining leases and special site rights held by the Group are as follows:
(i) On 22 March 2004, the Vatukoula Gold Mines Ltd entered into Special Mining Lease (“SML”) agreements with the Government of Fiji
to lease a piece of land in the Province of Ba for the purpose of mining minerals.  The terms of the lease agreement is for 20 years 
ending on 21 March 2025. Vatukoula Gold Mine Ltd has three agreements and the details are as follows: 
Mining lease tile Lease number
Vatukoula Gold Mines Ltd (formerly known as Westech Gold Ltd) under freehold title 54
Majority of the lease is owned by Nosomo Landowners. The remainder of SML is crown Freehold 55
Vatukoula Gold Mines Ltd (formerly known as Westech Gold Ltd) under freehold title 56
Under the current agreement, rent is payable for Lease No. 54 and 56 at the rate of F$39,660 (2011: F$79,321) per annum, which is 
the equivalent of £14,002 (2011: £27,772). Rent payable for Lease No. 55 is F$9,566 (2011: F$19,132) per annum, which is the 
equivalent of £3,377 (2011: £6,698) 
(ii) On 21 March 2008 and 30 June 2008, the Vatukoula Gold Mines Ltd entered into Special Prospecting Licenses (“SPL”) agreements 
with the Government of Fiji.  The terms of the lease agreement are as follows: 
Special Prospecting Lease Number Expiry
SPL1201 21 March 2025
SPL1344 30 June 2013
SPL1360 30 June 2013
Under the current agreement, rent is payable for SPL1201 at the rate of F$13,882 (2011: F$13,882) per annum, which is the equivalent
of £4,962 (2011: £4,860). Rent payable for SPL1344 is F$5,332 (2011: F$5,332) per annum, which is the equivalent of £1,907 (2011:
£1,867). Rent payable for SPL1360 is F$26,437 (2011: F$26,437) per annum, which is the equivalent of £9,454 (2011: £9,256). Overview Performance Governance Financial Statements & Other Information
83
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29. Commitments continued
(iii) T otal commitments for future SML and SSR lease rentals, which have not been provided for in the financial statements, are as follows:
Group
2012 2011
£’000 £’000
No later than 1 year 18 20 
Later than 1 year an no later than 5 years 198 78 
Later than 5 years 181 177 
397 275
(b) Capital commitments
Capital commitments as at 31 August 2012 amounted to £495,728  (2011: £912,000 ). These commitments are in relation to 
projected expenditure on mine properties and development.
30. Leases
(a) Operating leases
Details of operating leases held by the Group are as follows:
(i) The Group currently has no operating leases with ANZ for motor vehicles. During 2011 the group had operating lease repayable by 
monthly instalments of F$ 20,245, which was the equivalent of £7,088 .
(ii) Total commitments for future motor vehicle lease rentals, which have not been provided for in the financial statements, are as follows:
Group
2012 2011
£’000 £’000
No later than 1 year -29
Later than 1 year an no later than 5 years --
Later than 5 years --
-29
(iii) The operating lease is secured over the master operating lease agreement over motor vehicles.
(b) Finance leases
Details of finance leases held by the Group are as follows:
(i) The finance lease was fully repaid during 2012 (2011: repayable by monthly instalments of £1,082 and interest charged at the rate 
of 14% per annum). 
(ii) Total future minimum finance lease payments are payable as follows:
Group
2012 2011
£’000 £’000
No later than 1 year -5
Later than 1 year an no later than 5 years --
-5
The finance liability was secured by a master lease agreement and a charge over the lease assets and fully repaid during 2012. 84
Notes to the Financial Statements continued
Financial Statements & Other Information
Annual Report and Accounts 2012
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31. Contingent liabilities
(a) The following contingent liabilities are in relation to the Fijian subsidiary.
Group
2012 2011
£’000 £’000
Mining bond 44
Bankers undertaking 211 207
215 211
Both the mining bond and the bankers undertaking are contingent liabilities to cover remediation or rehabilitation costs associated 
with any environmental breaches of the Special Site Rights. There have been no breaches to date, and depending on future events, 
it remains uncertain if these liabilities will realise or suffice.
(b) The Fiji Islands Revenue & Customs Authority (“FIRCA”) has issued taxation assessments against the Group of F$11.5million. The 
Group does not believe any amounts are payable and is defending the claim.  No amounts have been provided in the accounts in 
respect of this claim.  As at year end, advance tax payment of F$7.9m has been made in relation to this. The government has 
recognised the prepayment of the claimed tax liability, however given the period of time these debts have been outstanding, the 
Company has taken a prudent view and provided for the debts (Note 18).  The expected timing and amounts of cash outflows 
remain uncertain.
(c) The Group is a plaintiff in several litigations with respect to potential claims of creditors, workers compensation and industrial action.
The directors have assessed the likelihood of these claims becoming payable and consider that this is not likely. Therefore there are 
no provision or contingent liabilities disclosed for these.
32. Deferred taxation
Movements in deferred taxation during the year are as follows:
Group
2012 2011
£’000 £’000
Balance 1 September 7,776 9,394 
Impact of change in tax rate - (1,006)
Impact of tranfers of mining rights 57 -
Utilisation charged to the Statement of Comprehensive Income (453) (612)
6,758 7,776
The deferred tax liability was in respect of the intangible assets recognised in the acquisition in a prior period (Note 12).
33. Post balance sheet events
On 9 November 2012, the Company completed a placing with Zhongrun International Mining Co. Ltd. ("Zhongrun") whereby Zhongrun
has subscribed for 20,000,000 new ordinary shares in the Company at a price of £0.33 per share, to raise £6.6 million.
On 12 December 2012, the Group signed an agreement with FIRCA in relation to a taxation assessment of F$11.5million against the
Group. Under the agreement FIRCA will retain a proportion of the advance tax payments made by the Group and will refund F$2.2
million to the Group, which will be paid by way of instalments over two years. Overview Performance Governance Financial Statements & Other Information
85
www.vgmplc.com 86
Financial Statements & Other Information
Annual Report and Accounts 2012
www.vgmplc.com
Corporate Information
Secretary
Laytons Secretaries Limited
Carmelite
50 Victoria Embankment
London EC4Y 0LS
Registered office
5th Floor Carmelite
50 Victoria Embankment
Blackfriars
London EC4Y 0LS
Nominated Adviser to the Company
WH Ireland Limited
24 Martin Lane
London  EC4R 0DR 
Brokers to the Company
WH Ireland Limited
24 Martin Lane
London EC4R 0DR
Canaccord Genuity Hawkpoint Limited
41 Lothbury
London EC2R 7AE
Auditors
Mazars LLP
Tower Bridge House
St Katharine’s Way
London E1W 1DD
Solicitors
Laytons
Carmelite
50 Victoria Embankment
London EC4Y 0LS
Registrars
Capita IRG plc
Bourne House
34 Beckenham Road
Beckenham
Kent BR3 4T Designed and produced by
brand:mining
T: +44 (0) 151 236 9855
www.brandmining.co.uk Vatukoula Gold Mines Plc
Suite 3B
38 Jermyn Street
London SW1Y 6DN
United Kingdom
T: +44 (0) 207 440 0643
F: +44 (0) 207 440 0641
E: info@vgmplc.com
www.vgmplc.com
VATUKOULA 
GOLD MINES