notes to and forming part of the financial statements  for the year ended 30 June 2004 (continued) Cash at bank 5  10,001  11,143  -  -  Short term deposits 5 3,361 2,771 - - Gold bullion 5 5,912 3,713 - - 19,274 17,627 - - Consolidated Resolute Mining Limited 2004 2003 2004 2003 Note $’000 $’000 $’000 $’000 Net profit/(loss) from ordinary activities after income tax 32,085  15,928  908  (1,726) Add/(deduct) non-cash items: Write down of mineral exploration and development costs 515  1,632  4  439  Depreciation and amortisation of property, plant and equipment 7,966  8,032  -  -  Amortisation of exploration and development costs 1,812  5,052  -  -  Other 43 - - - (Profit)/loss on sale of property, plant and equipment (4,643) 37  -  -  Profit on sale of investments (12,557) (97) (4,469) -  Profit on sale of exploration properties (1,844) -  - - Foreign exchange (gain)/loss 1,342  (1,454) 1,119  -  Provision for diminution in value of investments -  1,509  -  -  Provision for employee entitlements (27) (1,490) -  -  Provision for stock obsolescence -  (13) -  -  Changes in assets and liabilities: Receivables (2,166) 10 64 (59) Inventories (319) 93 - - Deferred put option expenditure (4,782) (3,031) -  -  Prepayments (1,837) (157) (353) (52) Deferred mining costs (3,976) (4,961) -  -  Creditors (5,256) (4,743) 63 68 Provision for taxation 1,495  (736) -  -  Provisions (2,143) (3,611) (58) - Foreign exchange and gold hedging losses -  387  -  -  Deferred tax liability 1,447  504  -  -  Unearned income 4,376  1,955  -  58  Cash flow from operating activities 11,531  14,846  (2,722) (1,272) RESOLUTE MINING LIMITED 2004 ANNUAL REPORT (b) Reconciliation of net profit/(loss) from ordinary activities after income tax to the net cash flows from operating activities (a) Reconciliation of cash NOTE 27 - NOTES TO THE STATEMENT OF CASH FLOWS Cash at the end of the year as shown in the Statement of Cash  Flows is reconciled to the related items in the Statement of  Financial Position as follows: At 30 June 2004, the consolidated entity had $19.274m in cash and bullion, of which $3.4m is subject to certain restrictions pursuant to the group’s performance bond credit facility agreements.  The restrictions involve Resolute maintaining a retention account requiring a minimum balance. The statement has been prepared on the basis that the cash which is subject to certain restrictions is still cash or a cash equivalent as defined in AASB 1026.  55