Changes in contingent liabilities
In fourth quarter 2012 the Company booked the full provision for estimated restoration costs related to the Tapuli mine and to the cost of dismantling and removal of the standing buildings. This has increased the provision in the statement of financial position to USD 28.8 million compared to USD 1.2 million as at third quarter of 2012. This provision has been included to the cost of tangible assets. Consequently the contingent liability for the restoration costs amounts to USD 17.1 million, to be compared with USD 35.1 million, as estimated in the third quarter of 2012 which do not include the costs of dismantling and removal of the standing buildings. The remaining contingent liability is related to the Sahavaara mine and assets yet not activated during the reporting period.
Related party transactions
Relationships
Companies and persons which control or to a significant extent influence the Company or its subsidiaries or which are controlled or to a significant extent influenced by the Company or its subsidiaries are to be regarded as related parties under IAS 24. Therefore, for the Group, the related parties comprise subsidiaries and key management personnel.
Terms and conditions of transactions with related parties
The Group in the normal course of business carries out transactions with related parties on commercial or agreed upon terms and conditions. Outstanding balances at the year-end are unsecured and interest free and settlement occurs in cash or share based payment. There have been no guarantees provided or received for any related party receivables or payables.
The consolidated financial statements include the financial statements of the Company and the subsidiaries listed in the following table:
As at December 31 ------------------ Country ofEntity's name incorporation 2012 2011---------------------------------------------------------------------------Northland Resources S.A. Luxembourg Parent ParentNorthland Resources S.A - Swiss branch Switzerland 100% 100%Parent directly owns the following entities:------------------------------------------North American Gold (Barbados) Inc. (i) Barbados - 100%Northland Sweden AB (formerly Northland Resources Tapuli Mine AB) Sweden 100% 100%Northland Mines OY Finland 100% 100%Parent indirectly owns the following entities through Northland Sweden AB:------------------------------------------Northland Exploration Sweden AB (formerly Barsele Guld AB) Sweden 100% 100%Northland Resources AB Sweden 100% 100%Northland Logistics AB (formerly Northland Exploration Sweden AB) Sweden 100% 100%Northland Logistics AS Norway 100% 100%Parent indirectly owns the following entity through Northland Mines OY:------------------------------------------Northland Exploration Finland OY Finland 100% 100%
(i) North American Gold (Barbados) Inc. was dissolved in the reporting year
Transactions with common key management and directors:
