note 20. contributed equity and reserves
(a) Issued and paid up capital
| Ordinary shares | | | | |
| Issued and fully paid | 717,142,802 | 623,692,802 | 1,474.6 | 1,111.6 |
Effective 1 July 1998, the Corporations legislation in place abolished the concepts of authorised capital and par value shares. Accordingly, the Company does not have authorised capital or par value in respect of its issued shares.
Fully paid ordinary shares carry one vote per share and carry the right to dividends.
(b) Movements in ordinary shares on issue
| Balance 30 June 2008 | 613,497,369.00 | | | 1088.4 |
| July 2008 | Option conversions | 100,000 | 5.5 | 1.04005 | 0.5 |
| July 2008 | Option conversions | 200,000 | 5.5 | 1.04005 | 1.1 |
| July 2008 | Option conversions | 100,000 | 5.5 | 1.04005 | 0.5 |
| September 2008 | Option conversions | 100,000 | 2.8 | 1.16633 | 0.2 |
| January 2009 | Option conversions | 1,560,000 | 2.8 | 1.55581 | 2.8 |
| February 2009 | Fusion acquisition | 8,135,433 | 2.91 | 1.5476 | 15.3 |
| Transfer from reserves | | | | 2.8 |
| Balance 30 June 2009 | 623,692,802 | | | 1111.6 |
| September 2009 | Share placement | 93,4500,00 | 4.6 | 1.1489 | 374.2 |
| Transaction costs | | | | (11.2) |
| Balance 30 June 2010 | 717,142,802 | | | 1474.6 |
(c) Reserves
| CONSOLIDATED | | | | | | | | |
| At 1 July 2008 | | 0.1 | 17.8 | 7.5 | 154.9 | 38.9 | 14.9 | 234.1 |
| Net unrealised movement on available-for-sale investments | - | - | - | 41.4 | - | - | - | 41.4 |
| Share-based payments | - | - | 8.1 | - | - | - | - | 8.1 |
| Foreign currency translation | - | - | - | (4.6) | (241.5) | - | - | (246.1) |
| Transfer of impairment loss to P&L | - | - | - | 0.5 | - | - | - | 0.5 |
| Allotment of 15% interest in Paladin (Africa) Ltd to Government of Malawi | (0.2) | - | - | - | - | - | - | (0.2) |
| Income tax | - | - | - | (12.2) | 6.3 | - | - | (5.9) |
| At 30 June 2009 | (0.2) | 0.1 | 25.9 | 32.6 | (80.3) | 38.9 | 14.9 | 31.9 |
| At 1 July 2009 | (0.2) | 0.1 | 25.9 | 32.6 | (80.3) | 38.9 | 14.9 | 31.9 |
| Net unrealised movement on available-for-sale investments | - | - | - | (37.0) | - | - | - | (37.0) |
| Share-based payments | - | - | 12.1 | - | - | - | - | 12.1 |
| Foreign currency translation | - | - | - | 4.2 | 23.5 | - | - | 27.7 |
| Income tax | - | - | - | 8.0 | - | - | - | 8.0 |
| At 30 June 2010 | (0.2) | 0.1 | 38 | 7.8 | (56.8) | 38.9 | 14.9 | 42.7 |
Nature and purpose of reserves
Listed option application reserve
This reserve consists of proceeds from the issue of listed options, net of expenses of issue. These listed options expired unexercised and no restriction exists for the distribution of this reserve.
Share-based payments reserve
This reserve is used to record the value of equity benefits provided to Directors, employees and consultants as part of their remuneration. Refer to
Note 28 for further details on share-based payments.
Available-for-sale reserve
This reserve records the fair value changes on the available-for-sale financial assets as set out in
Note 10(b).
Foreign currency translation reserve
This reserve is used to record exchange differences arising on translation of the group entities that do not have a functional currency of US dollars and have been translated into US dollars for presentation purposes, as described in
Note 2(f).
Convertible bond non-distributable reserve
This reserve records the equity portion of the convertible bonds issued on 15 December 2006 and on 11 March 2008, as described in
Note 18.
Acquisition reserve
This reserve represents the premium paid on the acquisition of a non-controlling interest in Summit.
Consolidation reserve
This reserve recognises the difference between the fair value of the 15% interest in PAL allotted to the Government of Malawi, at the net present value of the Kayelekera Project on the date the Development Agreement was signed (22 February 2007), and the non-controlling interest share of the net assets of PAL.