1.5.3 Financial position as at September 30, 2010 vs. December 31, 2009
The Company’s total assets decreased to $147.2 million from $150.1 million. The decrease was
mainly attributable to the decrease in the carrying value of the Group’s investment in the Pebble
Partnership as a result of the exchange loss of $2.2 million recognized on translation (refer 1.5.2).
Cash and cash equivalents decreased by $5.2 million partly as a result of the purchase of the Liberty
Star claims for a consideration of approximately $1.1 million in cash and a loan advance of
$3.2 million. The Company utilized $4.4 million of its cash resources in its operations, earned
interest income of $0.3 million on cash balances held during the period and interest accrued on the
balance of the loan to Liberty Star, and received $3.4 million on issue of shares for cash as a result
of the exercise of share purchase options.
The Group took a loss because they spent on us(LBSR)