The JORC resource declarations during the period crystallised the company’s obligations to pay bonuses and incentives to directors, senior executives and others.

The bonuses were approved by shareholders at an extraordinary general meeting on January 20 and net of the company’s obligations to withhold pay as you go taxes.

They were settled by the issue of 9,125,752 ordinary fully paid shares and cash of $1.05 million in the week ended January 27, 2012.

Guildford’s associated obligations of $3.1 million for PAYG and payroll taxes are due and payable in subsequent months.

“All bonuses and associated PAYG and payroll taxes have been accrued in full as at 31 December 2011,” the company said.

Turning to its Mongolian operations, the company announced an upgrade of the JORC coal resource for the proposed North Pit to 70.4 million tonnes comprising an indicated resource of 39.7Mt and an inferred resource of 30.7Mt of coal with coking potential.

Scoping studies for the start-up operation on the South Gobi project have commenced with a 2 million tonnes per annum case and a 4Mtpa case being developed.

On November 11, 2011, a placement to long-term shareholder Regal Funds Management was announced.

The transaction was completed on December 1, 2011 for gross proceeds of $10 million for the issue of 10,869,566 ordinary fully paid shares in the company at a nominal issue price of 92c

Cash at bank at the end of the reporting period was $15 million.