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6 May 2011 07:00
6 May 2011
Alba Mineral Resources Plc
Final results for the year ended 30 November 2010
CHAIRMAN'S STATEMENT
The Board of Alba Mineral Resources plc (the "Company" or "Alba", and collectively with its Subsidiary Companies, the "Group") is pleased to report the results for the year ended 30 November 2010. They incorporate the results of its subsidiary companies, Aurum Mineral Resources Limited ("AMR"), Mauritania Ventures Limited ("MVL") and Alba Mineral Resources Sweden AB ("Alba Sweden") (collectively the "Subsidiary Companies").
INTRODUCTION
Alba is a committed, technically driven explorer with a commodity focus on uranium, nickel and gold. Alba currently has a number of well researched wholly owned properties and joint venture interests.
The Company's overall corporate and exploration strategy will continue to be one of developing a portfolio of well-researched, promising and prospective exploration properties that will be pursued further, either in the Company's own right or in conjunction with other parties. To create and realise value, projects may be disposed of (in whole or part), spun off into a separate company, joint ventured to include a cash consideration and/or maintaining a 'Net Smelter Return' or developed into operating mines.
RESULTS AND DIVIDENDS
The loss for the period, after taxation, attributable to equity holders amounted to £282,186 (2009: £192,367 loss).
The directors do not recommend the payment of a dividend (2009: £nil).
REVIEW OF ACTIVITIES
Our activities in the year have been primarily focused on securing additional funding for the Group. As announced on 22 December 2009, the Company secured funding to a total of £100,000 from directors and other related parties.
On 31 August 2010, the Company announced in its interim statement that it had completed the drilling of a 178 m deep diamond drill hole at its Limerick Licence in Ireland. The assay results from this hole were encouraging and we continue to seek a JV partner for this licence in what is a very prospective area. The licence covering this ground has been renewed until 27 May 2016.
Also in Ireland, the Company held exploration licences in Bohaun, Co. Galway. However, based on a review of the Company's portfolio and our ability to fund further exploration with a view to developing a commercially viable mining operation, these licences have now been surrendered.
In Scotland, the Company continues to believe that the Arthrath Ni-Cu-PGE project near Aberdeen has significant potential as a sulphide nickel target. On 4 November 2010, we reported that this project was previously held under private mineral right agreements with local landowners. The landowners in 2009 agreed a moratorium on the payment of licence fees until the company was able to raise additional finance and whilst this moratorium expired in October 2010 we are looking to negotiate extensions. This project continues to be a poorly explored magmatic Ni-Cu-PGE exploration target and we continue to seek joint venture partners to assist in carrying this project forward.
On 4 November 2010, we reported on the position regarding our 50% owned subsidiary Mauritania Ventures Ltd. (MVL). MVL held one uranium exploration permit No 422 in the north of Mauritania and on 30 April 2010 MVL paid the prescribed annual permit fee to the Mauritanian Mining Authorities. On 3 November 2010, we were advised that the permit had been withdrawn. The company has been in discussions with a third party and now believes that MVL can recover this permit. If this proves to be the case we will be raising additional funds to commence exploration activities on this permit area as soon as possible, which we believe to be very prospective based on previous prospecting results from this area.
OUTLOOK
As a result of the time and cost involved in maintaining the Company's licences and exploration activities, the Company's working capital position has been adversely affected. In these circumstances our ability to finance exploration activities has been severely restricted and the Company continues to manage cash tightly.
We have relinquished all of the Swedish licences we hold and plan to focus our exploration efforts on uranium exploration in Mauritania and base metal exploration in Ireland and Scotland within the constraints of the financial resources available to the Company. The Company continues to look to raise additional funds in the near future to enable it to continue to advance the development of its project portfolio. In the meantime, the Company has secured short-term credit facilities to enable it to meet its immediate requirements.
During this accounting period being reported on, no directors' fees have been drawn. All available funds have been spent to preserve our assets and maintain our listing. The Company still has unused credit facilities available to it to meet ongoing costs.
Michael Nott
Chairman and Managing Director
6 May 2011
Enquiries:
Alba Mineral Resources Plc | 020 7495 5326 | |
Michael Nott | ||
Northern Capital Partners Limited (Nominated Adviser) | 020 7796 8800 | |
Luke Cairns/Rod Venables | ||
GROUP INCOME STATEMENT
FOR THE YEAR ENDED 30 NOVEMBER 2010
2010 | 2009 | |||
£ | £ | |||
Revenue | - | - | ||
Cost of sales | - | - | ||
Gross loss | - | - | ||
Other administrative expenses | (163,724) | (191,498) | ||
Impairment of deferred exploration expenditure | (118,680) | (3,229) | ||
Administrative expenses | (282,404) | (194,727) | ||
Operating loss and loss before tax | (282,404) | (194,727) | ||
Taxation | - | - | ||
Loss for the year | (282,404) | (194,727) | ||
Attributable to: | ||||
Equity holders of the parent | (282,186) | (192,367) | ||
Minority interests | (218) | (2,360) | ||
(282,404) | (194,727) | |||
Loss per ordinary share | ||||
Basic and diluted | 0.26 pence | 0.19 pence | ||
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 NOVEMBER 2010
2010 | 2009 | |||
£ | £ | |||
Loss after tax | (282,404) | (194,727) | ||
Foreign exchange movements | (2,477) | - | ||
Total comprehensive loss | (284,881) | (194,727) | ||
Total comprehensive loss attributable to: | ||||
Equity holders of the parent | (284,663) | (192,367) | ||
Minority interests | (218) | (2,360) | ||
(284,881) | (194,727) | |||
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
30 NOVEMBER 2010
2010 | 2009 | |||
£ | £ | |||
Non-current assets | ||||
Intangible fixed assets | 566,484 | 619,992 | ||
Property, plant and equipment | - | - | ||
Total non-current assets | 566,484 | 619,992 | ||
Current assets | ||||
Trade and other receivables | 68,608 | 16,952 | ||
Cash and cash equivalents | 10,607 | 14,831 | ||
Total current assets | 79,215 | 31,783 | ||
Current liabilities | ||||
Trade and other payables | 521,941 | 349,940 | ||
Financial liabilities | 318,834 | 212,030 | ||
Total current liabilities | 840,775 | 561,970 | ||
(Net liabilities)/net assets | (195,076) | 89,805 | ||
Capital and reserves | ||||
Called up share capital | 947,951 | 947,951 | ||
Share premium account | 977,401 | 977,401 | ||
Retained losses | (2,491,298) | (2,209,112) | ||
Merger reserve | 200,000 | 200,000 | ||
Foreign currency reserve | 142,430 | 144,907 | ||
Equity attributable to equity holders of the parent | (223,516) | 61,147 | ||
Minority interest | 28,440 | 28,658 | ||
Total equity | (195,076) | 89,805 | ||
CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 30 NOVEMBER 2010
2010 | 2009 | |||
£ | £ | |||
Cash flows from operating activities | ||||
Operating loss | (282,404) | (194,727) | ||
Depreciation | - | 3,166 | ||
Impairment of deferred exploration expenditure | 118,680 | 3,229 | ||
Foreign exchange revaluation adjustment | (2,477) | - | ||
Increase in creditors | 172,001 | 117,127 | ||
Increase in debtors | (51,656) | (11,674) | ||
Net cash used in operating activities | (45,856) | (82,879) | ||
Cash flows from investing activities | ||||
Payments to acquire property, plant and equipment | - | - | ||
Payments for deferred exploration expenditure | (65,172) | (59,340) | ||
Interest received | - | - | ||
Net cash used in investing activities | (65,172) | (59,340) | ||
Cash flows from financing activities | ||||
Proceeds from borrowings | 106,804 | 22,000 | ||
Proceeds from issue of share capital | - | 86,251 | ||
Net cash generated from financing activities | 106,804 | 108,251 | ||
Net decrease in cash and cash equivalents | (4,224) | (33,968) | ||
Cash and cash equivalents at beginning of period | 14,831 | 48,799 | ||
Cash and cash equivalents at end of period | 10,607 | 14,831 | ||
NOTES
1. Basis of preparation
The financial information set out in this announcement does not comprise the Group's statutory accounts for the year ended 30 November 2010. The financial information has been extracted from the statutory accounts of the Company for the year ended 30 November 2010. The auditors reported on those accounts; their report was unqualified and did not contain a statement under either Section 498 (2) or Section 498 (3) of the Companies Act 2006. The auditor's report did include an emphasis of matter relating to the uncertainty as to whether the Group can raise sufficient funds to continue to develop the Group's exploration assets.
2. Continuation of exploration activities
To continue to develop the Group's exploration assets and support the Company's value of the investment in subsidiaries supported by those assets the Group is dependent on securing further funds to continue exploration activities. With respect to those assets, the following is a summary of certain significant matters:
·; Whilst the licence for exploration assets with a carrying value of £520,612 has been withdrawn, the Board is confident that this licence will be reissued to the Group. The Group will require further funds to develop this asset.
·; A licence held for exploration assets with a carrying value of €55,056 is due for renewal on 27 May 2016.
·; The Company's investment in subsidiaries is £1,535,748, the value of which is dependent upon raising further finance to develop their assets.
Under current market conditions the Directors believe that there is a material uncertainty, which may cast significant doubt upon the ability of the Company to raise sufficient funds to continue to develop the Group's exploration assets.
If it is not possible to raise sufficient funds, the carrying value of the exploration assets of the Group and the investment of the Company in its subsidiaries are likely to be impaired.
3. Taxation
No charge for corporation tax for the period has been made due to the expected tax losses available.
4. Loss per share
Basic loss per share is calculated by dividing the loss attributed to ordinary shareholders of £282,186 (2009: £192,367) by the weighted average number of shares of 110,320,416 (2009: 99,214,048) in issue during the year. The diluted loss per share calculation is identical to that used for basic loss per share as the exercise of warrants would have the effect of reducing the loss per ordinary share and is therefore not dilutive under the terms of IAS 33 "Earnings per Share".
5. Report and Accounts
The statutory accounts for the year ended 30 November 2010 will be sent today to shareholders of the Company and will be delivered to the Registrar of Companies following the Company's Annual General Meeting, which will be held on 31 May 2011. The report and accounts will also be available on the Company's web site: www.albaminersalresources.com.
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