OPERATING RESULTS REVIEW OF FINANCIAL CONDITION LIQUIDITY AND CAPITAL RESOURCES CAPITAL EXPENDITURE SHARE ISSUES DURING THE YEAR Share Placements Option Conversions No options were converted during the financial year.  There were no share placements during the financial year. There has been a decrease in cash used to purchase property, plant and equipment in 2011 to $2,252,369 from  $2,700,248 for the year ended 30 June 2010. Capital commitments of $115,023 existed at the reporting date,  principally relating to the purchase of maintenance plant and equipment and a tailings dam lift for the Renison  Tin Project. The Consolidated Entity’s debt has decreased by $1,675,890 (2010: $7,219,019) over the last year due repayment  of finance leases secured by mobile plant and equipment at the Renison Tin Project. Of the Consolidated Entity’s  debt, 81% ($941,788) is repayable within one year of 30 June 2011, compared to 76% ($2,153,380) in the  previous year. Financing activities resulted in $8,640 (2010: $9,444,639) of net cash inflows. The increase in the previous year  was due to the placement of 178,000,000 shares to APAC Resources Limited for a total of $15,986,833 after  capital raising costs. There has been an increase in the amount of cash generated from investing activities to $22,502,060 (2010:  $8,665,319), which was mainly attributable to the sale of the Jabiru Metals Limited and Icon Resources Limited  shares for $48,579,912. This increase in cash flows was partly offset by the acquisition of shares in Mongolian  Resources Corporation Limited, Westgold Resources Limited and Aziana Exploration Corporation for a total of  $10,558,620. There has been an increase in the amount of cash generated from operating activities to $23,976,007 (2010:  $4,437,180), which is largely due to a decrease in operating costs at the Renison Tin Project. The consolidated statement of cash flows illustrates that there was an increase in cash and cash equivalents in  the year ended 30 June 2011 of $46,486,707 (2010: $22,547,138). The increase in cash inflow in comparison  with the prior year was due to the factors detailed below. The net profit from continuing operations after income tax of the Consolidated Entity for the period was  $62,801,803 (2010: $12,601,084), an improvement of 398% as compared to the previous year. This result  reflects an increase in operating profits from the Renison Tin Project, profit on the sale of shares in Jabiru Metals  Limited ($55,268,640), Aragon Resources Limited ($196,199) and Icon Resources Limited ($252,942). The Consolidated Entity’s net profit after income tax for the year was $62,296,608 (2010: $11,780,984), an  improvement of 429% as compared to the previous financial year. 25  DIRECTORS’ REPORT