Financial Results of Operations
Management’s Responsibility For Financial Statements The information provided in this report, including the financial statements, is the responsibility of management. In the preparation of these statements, estimates are sometimes necessary to make a determination of future values for certain assets or liabilities. Management believes such estimates are based on careful judgments and have been properly reflected in the accompanying financial statements. Management maintains a system of internal controls to provide reasonable assurance that the Company’s assets are safeguarded and to facilitate the preparation of relevant and timely information.
Information On Incurred Expenses Material costs incurred in the twelve month periods ended December 31, 2011 and 2010 were as follows: Cost type (1)Exploration and evaluation deferred expenditures (2)Employees benefit and expenses Administrative and other expenses Services and consumables used Audit and consulting expenses Interest expenses EEA write off Depreciation and amortisation Other costs
2011 (£) 7,647,810 3,007,019 983,015 683,957 329,320 547,743 165,215 102,172 108,744 13,647,620
2010 (£) 14,046,352 1,708,707 566,200 649,943 367,966 354,031 2,113,572 126,034 25,669 19,958,474
(1)These expenditures are capitalised as exploration and evaluating assets. (2)In 2010, the allocation to employee benefit reserves found (relating to vesting options) totalled to £556,895 while
the corresponding number in the same period in 2011 was £1,624,657 so the net amount of increase is £1,067,762. The balance in the increase over this period relates to an increase in the number of employees and some increases in salaries.
2011 Annual Report | Lydian International | 25