Normandy Mining Limited

Exhibit 20.4

Statements of Financial Performance

for the year ended 30 June

The above Statements of Financial Performance should be read in conjunction with the accompanying notes

Normandy Mining Limited

Statements of Financial Position

as of 30 June

The above Statements of Financial Position should be read with the accompanying notes

Normandy Mining Limited

Statements of Cash Flows

for the year ended 30 June

The above Statements of Cash Flows should be read in conjunction with the accompanying notes

Normandy Mining Limited

Statement of Shareholder’s Equity

The above Statements of Shareholder Equity should be read in conjunction with the accompanying notes

Normandy Mining Limited

Notes

to the consolidated financial statements

for the year ended 30 June 2001

1    SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

This general purpose financial report has been prepared in accordance with applicable Accounting Standard, Urgent Issues Group Consensus Views and the Corporations Act 2001. It is prepared in accordance with the historical cost convention, except for certain assets which are noted as at valuation. The accounting policies adopted are consistent with those of the previous year.

The directors have elected under section 334 (5) of the Corporations Act 2001 to apply Accounting Standard AASB 1041 “Revaluation of Non-Current Assets” for this financial year, even though the standard is not required to be applied until annual reporting periods beginning on or after 30 September 2001.

This financial report has been prepared using Australian dollars.

(a)    Principles of consolidation

The consolidated financial statements are presented as one set of financial statements and include all entities which comprise the Normandy Mining Limited consolidated entity, being the parent entity and its controlled entities. There are no controlled entities in the consolidated entity other than those listed in Note 28. The effects of all transactions between entities within the consolidated entity are eliminated in full.

(b)    Foreign currencies

Transactions denominated in foreign currencies have been brought to account at the exchange rates ruling at the time of the transactions. At balance date, foreign currency receivables and payables are translated at exchange rates ruling at that date.

Exchange gains and losses and hedging costs arising on contracts entered into as hedges of specific revenue or expense transactions are deferred until the date of such transactions at which time they are included in the determination of such revenues or expenses.

Assets and liabilities of self-sustaining overseas controlled entities are translated at exchange rates ruling at balance date and any exchange gain or loss arising on translation is carried directly to a foreign currency translation reserve.

When anticipated purchase or sale transactions have been hedged, actual purchases or sales which occur during the hedged period are accounted for as having been hedged until the amounts of those transactions are fully allocated against the hedged amounts.

Where a hedge transaction is terminated early and the anticipated transaction is still expected to occur as designated the deferred gains and losses that arose on the hedge prior to its termination continue to be deferred and are included in the measurement of the purchase or sale or interest transaction when it occurs. Where a hedge transaction is terminated early because the anticipated transaction is no longer expected to occur as designated, deferred gains and losses that arose on the hedge prior to its termination are included in the statement of financial performance for the period.

(c)    Revenue

Gold bullion is taken up as a sale in the period during which it is shipped from the mine, provided it is either sold or delivered to a gold refinery within the normal time span. Bullion delivered against forward sales contracts is accounted for at the contract rate. Base metal concentrate sales are recognised at the estimated sales value when delivery has occurred and pricing is determinable and adjusted for variations in metal price, assay, weight and currency at the time of final settlement. Other sales are taken up when title passes.

Normandy Mining Limited

Notes

to the consolidated financial statements

for the year ended 30 June 2001

1    SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT.)

Gold bullion held at year end is valued at the contract rates for those hedges it is expected to be delivered into. Base metal concentrate debtors are valued at the relevant forward contract US dollar rate.

Royalty revenue is recognised on an accrual basis in accordance with the substance of the relevant agreement.

Gains or costs arising upon entry into hedging transaction intended to hedge the sale of goods, together with subsequent exchange gains or losses resulting from those transactions are deferred up to the date of sale and included in the measurement of the sale.

If the hedging transaction is terminated prior to its maturity date and the hedged transaction is still expected to occur, deferral of any gains and losses which arose prior to termination continues and those gains and losses are included in the measurement of the hedged transaction.

In those circumstances where a hedging transaction is terminated prior to maturity because the hedged transaction is no longer expected to occur, any previously deferred gains and losses are recognised in the statements of financial performance at the date of termination.

If a hedge transaction relating to a commitment for the sale of goods or services is redesignated as a hedge of another specific commitment and the original transaction is still expected to occur, the gains and losses that arise on the hedge prior to its redesignation are deferred and included in the measurement of the original sale when it takes place. If the hedge transaction is redesignated as a hedge of another commitment because the original sale transaction is no longer expected to occur, the gains and losses that arise on the hedge prior to its redesignation are recognised in the statements of financial performance at the date of the redesignation.

(d)    Receivables

Receivables are recorded at amounts due less any provision for doubtful debts.

(e)    Derivatives

Derivative financial instruments are not recognised in the financial statements on inception. The costs associated with entering hedge transactions in respect of commodity sales together with gains or losses to the date of sale are deferred and included in the measurement of the final sale price. Additional information in respect of hedging is set out in Note 32.

The amount received or paid under interest rate swaps is recognised as an adjustment to interest rate expense when the cash flow takes place.

(f)    Income tax

Income tax has been brought to account using the liability method of tax effect accounting, whereby the income tax expense for the year is matched with the accounting profit after allowance for permanent differences. Income tax set aside on cumulative timing differences is brought to account as either a deferred income tax liability or an asset described as a future income tax benefit at the rate of income tax applicable to the period in which the liability will become payable or the benefit will be received. The future income tax benefit relating to tax losses is not carried forward as an asset unless the benefit can be regarded as being virtually certain of realisation. The future income tax benefit relating to timing differences is not carried forward as an asset unless its realisation is assured beyond any reasonable doubt. No provision has been made for any taxes on capital gains which could arise in the event of a sale of certain revalued non-current assets for the amount at which they are stated in the financial statements as it is not expected that any such liability will crystallise.

Normandy Mining Limited

Notes

to the consolidated financial statements

for the year ended 30 June 2001

1    SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT.)

(g)    Goodwill

Goodwill is measured as the excess of the cost of acquisition over the fair value of the identifiable net assets acquired. Amortisation is provided on a straight line basis over the period during which the benefits are expected to arise based on the life of the mine or over a period of twenty years whichever is the lesser.

(h)    Inventories

Inventories, apart from gold bullion, are valued at the lower of cost or net realisable value. Costs are assigned to inventories on hand by the method most appropriate to each class of inventory with the majority being valued on an average cost basis. Costs of production include fixed and variable direct costs and an appropriate portion of fixed overhead expenditure, depreciation and mine amortisation.

(i)    Other financial assets

The consolidated entity’s investments in listed shares and other corporations are carried at the lower of cost or recoverable amount. Dividend income attributable to the investments is recognised in profits when received. Loans to other corporations are recorded at amounts due less any provisions for doubtful loans.

(j)    Joint ventures

The proportionate interests in the assets and liabilities of joint venture operations have been incorporated in the financial statements under the appropriate headings. Details of the joint ventures are set out in Note 29.

(ii)    Joint Venture entities

The consolidated entity’s interest in the assets, liabilities and expenses of a joint venture entities are accounted for using the equity method. Additional information is provided in note 30.

(k)    Associated entities

The equity method is applied in respect of investments in associated entities in which the consolidated entity has the ability to exercise significant influence over the operating and financial policies of the investee. In the absence of evidence to the contrary, a 20% to 50% ownership interest is presumed to provide the consolidated entity significant influence.

(l)    Exploration and evaluation expenditure

Exploration and evaluation expenditure incurred by the consolidated entity is accumulated for each area of interest and recorded as an asset, if either:

The expenditure incurred in areas of interest located around existing milling facilities is provided for over the life of the milling facilities. Expenditure on all other areas of interest is expensed for as the expenditure is incurred other than for exploration assets acquired, which are initially recorded at cost.

The recoverable amount of each area of interest is determined on a bi-annual basis so that the net carrying amount does not exceed the recoverable amount. For areas of interest which are not considered to have any commercial value, or where exploration rights are no longer current, the capitalised amounts are written off against the provision and any remaining amounts are charged against profit.

Normandy Mining Limited

Notes

to the consolidated financial statements

for the year ended 30 June 2001

1    SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT.)

(m)    Development properties

Where it has been established to the satisfaction of Directors that ore reserves or mineral resources exist, development expenditure is accumulated as development properties. No amortisation is provided in respect of development properties until they are reclassified as mine properties following commencement of production.

(n)    Depreciation and amortisation

Mine properties are amortised on a units of production basis once production has commenced. Property, plant and equipment specific to mine properties are depreciated over the lesser of the expected useful life on a straight-line basis or the life of the mine on a units of production basis. The units of production method causes rates of depreciation and amortisation to vary according to the rate at which production has depleted the estimated future mineable reserves of the respective mines. Other property, plant and equipment are depreciated on a straight-line basis over the expected useful life. Land is not subject to depreciation.

For open pit mines, estimated future mineable reserves are comprised of proved and probable reserves of the mine site.

For underground mines, estimated future mineable reserves are based on the consolidated entity’s informal resource category denoted as High Confidence Resource (HCR). Underground mining has usually well established reserve positions that are accompanied by less well-defined mineralization that is recognized to have a high probability of future conversion to reserve category.

(o)    Prepaid/Deferred mining costs

Direct expenditure on surface mining is charged to operations at the life of mine stripping ratio of ore to waste for each pit. Under this method, costs are deferred when the actual stripping ratio exceeds the average life of mine stripping ratio and accrued when the actual stripping ratio is below the average life of mine ratio. The consolidated weighted-average waste ore ratio used for the years ended 30 June 2001, 2000 and 1999 are 5.20, 5.22 and 4.01, respectively.

Costs incurred in developing drives in underground mines are apportioned over the life of the mine using a pre-determined ratio of development metres to tonnes of ore reserve. A prepayment or provision is booked whenever the metres developed for a period differs from the mine life ratio.

Prepaid mining costs are disclosed in Note 17 “Other Assets” and deferred mining costs are disclosed in Note 19 “Provisions”.

These costs are incurred in waste removal activities and relate directly to the ounces produced over the life of the mine. Complete reversal of these amounts does not occur until the ultimate closure of the mine.

Periodically, the consolidated entity reviews the recoverable value of prepaid mining costs as part of a review of asset carrying values associated with each mine. The review is based on current factors surrounding the mine, including any changes in the expected life of the mine and the price of gold. If the recoverable value of these assets, taken as a whole, has fallen below the carrying value, the assets are written down to recoverable value.

(p)    Recoverable amount of non-current assets

Each reporting period, the recoverable amount of all non-current assets is assessed.

Normandy Mining Limited

Notes

to the consolidated financial statements

for the year ended 30 June 2001

1    SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT.)

Where the carrying amount of a non-current asset is greater than its recoverable amount, the asset is revalued down to its recoverable amount. Where net cash inflows are derived from a group of assets working together, such as at a mining operation, recoverable amount is determined on the basis of the relevant group of assets.

The expected net cash flows included in determining recoverable amounts of non-current assets are discounted to their present values using a market-determined, risk-adjusted discount rate. The effect of capital gains tax has not been taken into account.

(q)    Mine completion costs

Provision is made for estimated rehabilitation expenditure, decommissioning and closure costs using the incremental method on a units of production basis over the life of the mine from the time production commences. Future total mine completion costs are estimated annually on an undiscounted basis taking into account all current environmental and legal requirements and if material, are adjusted in the period of change.

Rehabilitation costs recognised include regrading of waste dumps, revegetation and erosion and drainage control, in order to allow for relinquishment of mining titles with no ongoing maintenance costs. Rehabilitation costs associated with exploration and evaluation activities are treated as exploration and evaluation expenditure.

(r)    Employee entitlements

Provision is made for all known obligations in respect of employees. Annual leave, long service leave and vested sick leave are provided at the current rate of pay as per the relevant awards and employee contracts. Provisions for long service leave commence at the anniversary of three years of service, with further amounts being provided as the entitlement grows beyond three years. It is expected that the resultant provision for long service leave will approximate the present value of the estimated future cash outflows associated with long service leave.

Additional information in respect of employee entitlements including ownership based remuneration schemes is provided in Note 36.

(s)    Accounts payable

Trade payables and other accounts payable are recognised when the economic entity becomes obliged to make future payments resulting from the purchase of goods and services.

(t)    Acquisition of assets

Assets acquired are recorded at the cost of acquisition, being the purchase consideration determined as at the date of acquisition plus costs incidental to the acquisition. In the event that settlement of all or part of the cash consideration given in the acquisition of an asset is deferred, the fair value of the purchase consideration is determined by discounting the amounts payable in the future to their present value as at the date of acquisition.

(u)    Borrowing costs

Borrowing costs are expensed as incurred except where they relate to the financing of projects under construction where they are capitalised up to the date of commissioning or sale. Capitalised borrowing costs are amortised from the commencement of commercial production.

(v)    Interest bearing liabilities

Debentures, bank loans and other loans are recorded at an amount equal to the net proceeds received. Interest expense is recognised on an accrual basis. Ancillary costs incurred in connection with the arrangement of borrowings are deferred and amortised on a straight line basis over the period of borrowing.

Normandy Mining Limited

Notes

to the consolidated financial statements

for the year ended 30 June 2001

1    SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT.)

(w)    Rounding amounts

The Company is of the kind referred to in Class order 98/100 dated 10 July 1998 issued by the Australian Securities and Investment Commission. In accordance with that Class Order amounts in this report and the financial report have been rounded to the nearest one hundred thousand dollars, except where rounding to the nearest one thousand dollars is required.

(x)    Comparative amounts

The consolidated entity has adopted the presentation and disclosure requirements of Accounting Standards AASB 1018 “Statement of Financial Performance”, AASB 1034 “Financial Report Presentation and Disclosure” and AASB 1040 “Statement of Financial Position” for the first time in the preparation of this financial report. In accordance with the requirements of these new/revised Standards, comparative amounts have been reclassified in order to comply with the new presentation format. The reclassification of comparative amounts has not resulted in a change to the aggregate amounts of current assets, non-current assets, current liabilities, non-current liabilities or equity, or the net profit/loss of the company as reported in the prior year financial report.