Adm Energy Regulatory News (ADME)

27 Sep 2006 07:40

Pan Pacific Aggregates PLC27 September 2006 Pan Pacific Aggregates plc Interim results for the 6 months ended 30 June 2006 Managing Director's Statement Pan Pacific Aggregates plc ("PPA" or "the Company"), the junior aggregatesdevelopment company operating in the Sechelt Peninsula in British Columbia,Canada, is pleased to report to its shareholders on its activities for the firsthalf of 2006. During the first quarter, the Company completed an extensive progam ofhelicopter airborne geophysics over the most geologically favourable portions ofthe property on its Sechelt development project,. Results were positive andpromising, as carbonate rocks and skarn (garnet/wollastonite) areas showeddistinct signatures in both magnetic susceptibility and electrical conductivityof these rocks. The Company also continued the biophysical studies required forthe Environmental Impact Assessment study in support of its application for aLarge Producer mining permit for the Sechelt Carbonate project. Field work inthis regard is expected to be completed during the last quarter of 2006. TheCompany remains on track to submit its Large Producer mining permit applicationin the first quarter 2007 which would allow it to produce up to 6 million tonnesper annum. During the period the Company has also carried out extensive geological mappingin the Carbonate zone which has revealed areas with significant chemical gradepotential. Subsequent to the end of June, the Company commenced geologicalmapping of the skarn areas and has also commenced diamond drilling in selectedareas of the Carbonate zone. PPA also acquired a group of nine mineral claims covering an area of 700hectares in the centre of the Company's proposed mining project in the Carbonatezone. As a result, the Company is the sole recorded holder of 103 mineralclaims covering 29,405 hectares on the Sechelt peninsula. Subsequent to June 30 the Company also completed its acquisition of 2.23hectares of waterfront land on the Pacific coast side of the Sechelt peninsula.Subject to environmental and other regulatory permits, the Company intends touse this land to site a ship loading facility for future transport of industrialminerals and construction aggregates to coastal markets in British Columbia, theUSA and Asia. The development of this ship loading facility is expected tosignificantly improve the economics of the Sechelt project. The Company completed financings totalling £2,460,000 during and subsequent tothe period. In May, the Company received £460,000 for the subscription of575,000 ordinary shares at £0.80 per share and in July received £2,000,000 fromthe issue of Unsecured Convertible Loan Notes. The Loan Notes are repayable atpar together with accrued interest or can be converted into ordinary shares ofthe Company at a pre-determined conversion price. The outlook for the construction aggregates industry in British Columbia and thewest coast of North America remains very positive. The Company plans tocontinue discussions with potential target customers and strategic partners inBritish Columbia and California to determine interest in long term supplycontracts and joint venture partnerships. The Board and management remain committed to fulfilling the strong growthpotential of the Company, however, in order to realise this potential theCompany will need to raise further funds from the existing shareholder base and/or new investors. William J. Voaden 020 7628 3989Interim Managing Director Unaudited Consolidated Statement of Recognised Income and ExpenseFor the six month period ended 30 June 2006 Period from Period from 6 month 13 December 2004 13 December 2004 period ended to to 30 June 2006 30 June 2005 31 December 2005 (unaudited) (unaudited) (audited) £'000 £'000 £'000 Revenue 12 - 28 Cost of sales (8) - (27) Gross Profit 4 - 1 Administrative expenses (500) (483) (1,556)Loss from operations (496) (483) (1,555) Financial (loss) / income (90) 85 272 Loss on ordinary activities before taxation (586) (398) (1,283) Taxation - - -Loss on ordinary activities after taxation (586) (398) (1,283) Attributable to: Equity holders of the parent (586) (397) (1,282) Minority interest - (1) (1) Loss for the period after taxation and deficit (586) (398) (1,283)carried forward Basic and diluted loss per ordinary share (pence) (0.9) (0.7) (2.3) All amounts relate to continuing activities Unaudited Consolidated Statement of Recognised Income and ExpenseFor the six month period ended 30 June 2006 Period from Period from 6 month 13 December 2004 13 December 2004 period ended To to 30 June 2006 30 June 2005 31 December 2005 (unaudited) (unaudited) (audited) £'000 £'000 £'000Loss for the period (586) (398) (1,283) Exchange differences arising on the translation 101 (79) (300)of foreign subsidiariesTotal recognised loss for the period (485) (477) (1,583) Attributable to: Equity holders of the parent (485) (476) (1,581) Minority interest - (1) (2) (485) (477) (1,583) Unaudited Consolidated Balance SheetAs at 30 June 2006 30 June 30 June 31 December 2006 2005 2005 (unaudited) (unaudited) (audited) £'000 £'000 £'000Assets: Non-current assetsIntangible assets 2,741 1,496 2,408Tangible assets 101 58 87Total non-current assets 2,842 1,554 2,495 Current assets Inventories 38 14 48Receivables 144 124 88Cash and cash equivalents 648 121 1,389Total current assets 830 259 1,525Total assets 3,672 1,813 4,020 LiabilitiesCurrent liabilities (207) (421) (466)Non-current liabilities (127) (150) (166) Total liabilities (334) (571) (632) Total net assets 3,338 1,242 3,388 Capital and reserves attributable to equityholders of the company Called up share capital 64 56 64Share premium account 5,343 1,662 4,906Foreign exchange reserve (199) (79) (300)Retained losses (1,871) (398) (1,283) 3,337 1,241 3,387 Minority interest 1 1 1 Total equity 3,338 1,242 3,388 Unaudited Consolidated Cash Flow StatementFor the six month period to 30 June 2006 Period from Period from 6 month 13 December 2004 13 December 2004 period ended To to 30 June 2006 30 June 2005 31 December 2005 (unaudited) (unaudited) (audited) £'000 £'000 £'000Operating activitiesNet loss from ordinary activities (586) (398) (1,283) Adjustments forDepreciation 5 - 4 Foreign exchange losses / (gains) 109 21 (254)Interest receivable (19) - (18) Minority interest - 1 1 (491) (376) (1,550)Operating loss before changes in working capitaland provisionsIncrease in trade and other receivables (56) (124) (88)Decrease / (Increase) in inventories 10 (14) (48)(Decrease) / Increase in trade and other payables (298) 571 632 (344) 433 496Cash (outflows) / inflows from operating (835) 57 (1,054)activities Investing activitiesForeign exchange (losses) / gains (109) (21) 254Interest received 19 - 18 Purchase of tangible fixed assets (18) (58) (91)Acquisition of intangible fixed assets (235) (1,575) (2,708)Cash flows from investing activities (343) (1,654) (2,527) Financing activities Issue of ordinary share capital (net of issue 437 1,718 4,970costs)Cash flows from financing activities 437 1,718 4,970 (Decrease) / Increase in cash (741) 121 1,389Cash and equivalents at beginning of the period 1,389 - -Cash and equivalents at end of the period 648 121 1,389 Reconciliation of net cash flow to movement in net funds:(Decrease)/increase in cash for the period (741) 121 1,389Net funds at start of period 1,389 - -Net funds at end of period 648 121 1,389 1. The results for the period are all derived from continuing activities. 2. The calculation of the basic and diluted profit per share has been basedon the loss after taxation for the period (£586,317) and the weighted averagenumber of ordinary shares of £0.001 each (63,685,660) in issue throughout theperiod. 3. For unevaluated mining properties, the full cost accounting method hasbeen adopted, whereby all costs associated with mineral property development andinvestment are capitalised on a project-by-project basis pending determinationof the feasibility of the project. Costs incurred include appropriate technicaland administrative expenses but not general overheads. If a mineral propertydevelopment project is successful, the related expenditures will be amortisedover the estimated life of the commercial ore reserves on a unit of productionbasis. Where a licence is relinquished, a project is abandoned, or isconsidered to be of no further commercial value to the company, the relatedcosts will be written off. Unevaluated mining costs are assessed at each yearend and where there are indications of impairment, the related costs will bewritten off. The recoverability of unevaluated mining costs is dependent uponthe discovery of economically recoverable reserves, the ability of the group toobtain necessary financing to complete the development of reserves and futureprofitable production or proceeds from the disposition of recoverable reserves.. 4. The unaudited results have been prepared on the basis of the accountingpolicies adopted in the annual accounts for the period ended 31 December 2005and are neither audited nor reviewed by the auditors of Pan Pacific AggregatesPlc. 5. The interim report is unaudited and does not constitute StatutoryAccounts as defined in Section 240 of the Companies Act 1985. A copy of theCompany's 2005 Statutory Accounts has been filed with the Registrar ofCompanies. The audit report issued for the period ended 31 December 2005 wasunqualified but contained an emphasis of matter paragraph in respect of thepreparation of the financial statements using the going concern basis. 6. The financial information for the period 1 January 2006 to 30 June 2006is unaudited. In the opinion of the directors the financial information forthis period presents fairly the financial position, results of operations andcash flows for the period in conformity with International Financial ReportingStandards consistently applied. This information is provided by RNS The company news service from the London Stock Exchange