Beowulf Regulatory News (BEM)

1 Sep 2005 07:00

Beowulf Mining PLC01 September 2005 BEOWULF MINING PLC INTERIM STATEMENT FOR THE SIX MONTHS TO THE END OF JUNE 2005 The Board of Beowulf Mining PLC (Beowulf) is pleased to report the interimresults to 30 June 2005. While these give an increased net loss of £152,769against £10,704 incurred in the same period last year, the Board is nonethelessmuch encouraged by the Company's progress in acquiring further concessionaryinterests and achieving an AIM listing (Symbol BEM). On 31 March 2005 the Company changed its name from Beowulf Gold PLC to BeowulfMining PLC to more accurately reflect its wider activities which are focused onexploration for world-class copper, gold and uranium deposits in northernSweden, encouraged by the country's favourable fiscal climate for incomingmining and exploration companies, as well as by the world demand and pricing ofthese metals. On 9 May 2005 Beowulf graduated from OFEX to AIM. Beowulf's interests in Sweden are in four areas : 1. "Ballek"area, consisting of Ballek 2, 3 and 4 exploration permitscovering 100 square kilometres.2. "Grundtrask"area, consisting of Grundtrask 1, 2 and 3 explorationpermits covering 42 square kilometres.3. "Jokkmokk" area, consisting of Majaves 1 and 2, Tjaula and Karvoexploration permits covering 82 square kilometres.4. "Ussalahti" area, consisting of the Ussalahti 1, 2 and 3 explorationpermits covering 9 square kilometres. Ballek in the Arjeplog County of northern Sweden contains several copper goldprospects, including the Lulepotten deposit which was drilled by the GeologicalSurvey of Sweden (GSS) between 1960 and 1971, and was found to contain 5.1million tonnes of copper and 0.25 grams per tonne of gold. All the prospects atBallek overlie a large gravity anomaly. Since the licences were issued Beowulfhas been checking the radioactivity of the GSS drill cores from Ballek, and haveidentified parts rich in uranium. In addition Beowulf has located uranium-richboulders over the drill cores. At the time of writing Gold Fields ExplorationB.V. is conducting due diligence evaluation over the Ballek licences 2 and 3under the rights of first refusal to joint venture the permits. Grundtrask is in the Skellefte mining district. In early 2005 three diamonddrill holes were completed by Beowulf and an intersection of 30 metres of 1.14grams per tonne was obtained. This proved that the gold mineralised structureextended for 675 metres. Beowulf is awaiting the availability of a rotarypercussion drill rig to drill an additional hole to check the results of otheroperators in the area, who are claiming high grades with their large diameterrotary drilling as opposed to Beowulf's own 42mm diamond drill core. At Jokkmokk, a world class diamond drill intersection of copper gold wasobtained in 2004 on the Majves 1 exploration permit, and in April and May 2005ten additional diamond drill holes were completed. The exploration was entirelyfinanced by Phelps Dodge Exploration Sweden, which however has recentlywithdrawn from the Beowulf Joint Venture for as yet undisclosed reasons. Beowulfwill assess the results from all the Phelps Dodge data which it will inheritunder the terms of the joint venture. Using a geological data base system it hasmeanwhile purchased, it will decide whether to continue the project alone or toseek another partner. The Ussalahti area is in the Kiruna Mining area. It is considered prospectivefor massive sulphide copper and gold deposits. In July 2005 Beowulf undertookhelicopter assisted geological studies and has located high grade copperboulders overlying geophysical anomalies. Beowulf owns 7,500,000 shares (or 8.3%) of Agricola Resources PLC ("Agricola"OFEX Symbol AGC), which has diversified into uranium exploration anddevelopment. Agricola has since obtained exploration permits in Finland and hasalready reported some encouraging results. The directors will work hard throughout the remainder of 2005 to maintain aregular news flow to the market on its accelerating exploration activities. YourBoard thus believes that its spread of present interests now offers increasinglyattractive opportunities for achieving desired growth. Dr. Robert YoungChairmanBeowulf Gold PROFIT AND LOSS ACCOUNTUNAUDITED RESULTS FOR THE 6 MONTHS TO 30 JUNE 2005______________________________________________________________ (Unaudited) (Unaudited) (Audited) 6 months to 6 months to Year Ended 30 June 2005 30 June 2004 31 December 2004 £ £ £Turnover Nil Nil Nil Administrative expenses ( 224,843) (80,864) (166,530) _______ _______ _______ Operating loss (224,843) (80,864) (166,530) Profit on sale of fixed assets - 69,488 69,488 _______ _______ _______ Loss on ordinary activities beforeinterest (224,843) (11,376) (97,042) Other interest receivable and similarincome 72,074 672 38,722 _______ _______ _______ Loss on ordinary activities beforetaxation (152,769) (10,704) (58,320) Tax on loss on ordinary activities - - - _______ _______ _______ Loss on ordinary activities aftertaxation (152,769) (10,704) (58,320) _______ _______ _______ Basic loss per share (0.31p) (0.03p) (0.16p) Diluted loss per share (0.20p) (0.02p) (0.10p) The profit and loss account has been prepared on the basis that all operationsare continuing operations. There are no recognised gains and losses other than those passing through theprofit and loss account. BALANCE SHEETUNAUDITED RESULTS AS AT 30 JUNE 2005______________________________________________________________ (Unaudited) (Unaudited) (Audited) at 30 June at 30 June at 31 December 2005 2004 2004 £ £ £Fixed assetsIntangible assets 149,210 108,358 102,921Tangible assets 438 151 127Investments 178,125 75,000 112,500 ______ _______ _______ 327,773 183,509 215,548 Current assetsDebtors 27,837 9,796 6,609Cash at bank and in hand 553,932 40,157 194,730 _______ _______ _______ 581,769 49,953 201,339 Creditors: amounts falling duewithin one year (15,420) (12,758) (4,958) _______ _______ _______ Net current assets 566,349 37,195 196,381 _______ _______ _______Total assets less current liabilities 894,122 220,704 411,929 _______ _______ _______ Capital and reservesCalled up share capital 560,732 366,040 420,896Share premium account 1,986,856 1,307,747 1,491,731Capital Contribution 46,451 46,451 46,451Profit and loss account (1,699,917) (1,499,534) (1,547,149) _______ _______ _______ Shareholders' funds - equity interests 894,122 220,704 411,929 _______ _______ _______ CASH FLOW STATEMENTUNAUDITED RESULTS FOR THE 6 MONTHS TO 30 JUNE 2005______________________________________________________________ (Unaudited) (Unaudited) (Audited) 6 months to 6 months to Year Ended 30 June 2005 30 June 2004 31 December 2004 £ £ £ Net cash outflow from operating activities (218,575) (67,390) (152,420)Returns on investments and servicing of financeInterest received 6,449 672 1,222 _______ _______ _______ Net cash inflow for returns on investments and servicing of finance 6,449 672 1,222 Capital expenditurePayments to acquire intangible assets (63,304) (55,059) (54,846)Payments to acquire tangible assets (329) - -Cost on disposal of assets - (5,513) (5,513) _______ _______ _______Net cash outflow for capital expenditure (63,633) (60,572) (60,359) _______ _______ _______ Net cash outflow before management of liquid resources and financing (275,759) (127,290) (211,557) FinancingIssue of ordinary share capital 653,492 51,000 297,850Cost of share issue (18,531) - (8,010) _______ _______ _______ Issue of shares 634,961 51,000 289,840 _______ _______ _______ Net cash inflow from financing 634,961 51,000 289,840 _______ _______ _______ Increase / (decrease) in cash in the period 359,202 (76,290) 78,283 _______ _______ _______ NOTES TO THE CASH FLOW STATEMENTUNAUDITED RESULTS FOR THE 6 MONTHS TO 30 JUNE 2005______________________________________________________________ (Unaudited) (Unaudited) (Audited)1 Reconciliation of operating loss 6 months to 6 months to Year endedto net cash outflow from operating 30 June 2005 30 June 2004 31 December 2004activities £ £ £ Operating loss (224,843) (11,376) (166,530)Depreciation of tangible assets 18 24 48Amortisation of intangible assets 17,015 9,640 14,865Profit on sale of intangible fixed assets - (69,488) -(Increase)/Decrease in debtors (21,227) (3,056) 131Increase/(Decrease) in creditors within one year 10,462 6,866 (934) _______ _______ _______Net cash outflow from operating activities (218,575) (67,390) (152,420) _______ _______ _______ (Unaudited) (Unaudited) (Audited) 6 months to 6 months to Year Ended2 Analysis of net funds 30 June 2005 30 June 2004 31 December 2004 £ £ £ Net cash at start of period 194,730 116,447 116,447Increase/(Decrease) in net funds from cash flows 359,202 (76,290) 78,283 _______ _______ _______ Net cash at end of period 553,932 40,157 194,730 _______ _______ _______ (Unaudited) (Unaudited) (Audited)3 Reconciliation of net cash flow to 6 months to 6 months to Year Endedmovement in net funds 30 June 2005 30 June 2004 31 December 2004 £ £ £ Increase/(Decrease) in cash in the year 359,202 (76,290) 78,283Cash (inflow)/outflow from- increase/(decrease)in debt - - - _______ _______ _______Movement in net funds in the period 359,202 (76,290) 78,283Opening net funds 194,730 116,447 116,447 _______ _______ _______ Closing net funds 553,932 40,157 194,730 _______ _______ _______ NOTES TO THE FINANCIAL STATEMENTSUNAUDITED RESULTS FOR THE 6 MONTHS TO 30 JUNE 2005______________________________________________________________ 1 Basis of preparation of interim accountsThe accounts for the company for the six months ended 30 June 2005, which areunaudited, have been prepared on the basis of the accounting policies used inthe audited financial statements for the year end 31 December 2004 as set out innote 2 below. The financial information does not constitute statutory accounts within themeaning of Section 240 of the Companies Act 1985. 2 Accounting policies 2.1 Accounting conventionThe financial statements are prepared under the historical cost convention. 2.2 Intangible fixed assets - exploration costsExpenditure on the acquisition costs, exploration and evaluation of interests inlicences including related overheads are capitalised. Such costs are carriedforward in the balance sheet under intangible assets and amortised over theminimum period of the licences in respect of each area of interest where: a) such costs are expected to be recouped through successful development andexploration of the area of interest or alternatively by its sale. b) exploration activities have not yet reached a stage that permits a reasonableassessment of the existence or otherwise of economically recoverable reservesand active operations in relation to the areas are continuing. An annual impairment review is carried out by the directors to consider whetherany exploration or development costs have suffered impairment in value and ifnecessary provisions are made accordingly. Accumulated costs in respect of areas of interest, which have been abandoned arewritten off to the profit and loss account in the year in which the area isabandoned. Exploration costs are carried at the lower of cost and net realisable value. Exploration costs were re-categorised in the year ended 31 December 2004 fromtangible fixed assets. Comparatives for that year have been re-statedaccordingly. 2.3 Tangible fixed assets and depreciationTangible fixed assets are stated at cost less depreciation. Depreciation isprovided at rates calculated to write off the cost less estimated residual valueof each asset over its expected useful life, as follows: Plant and equipment 25% on reducing balance 2.4 InvestmentsFixed asset investments are stated at cost less provision for diminution invalue. 2.5 Deferred taxationDeferred tax is provided in full in respect of taxation deferred by timingdifferences between the treatment of certain items for taxation and accountingpurposes. The deferred tax balance has not been discounted. A deferred tax assetis not recognised unless recovery is expected in the foreseeable future. 2.6 Foreign currency translationMonetary assets and liabilities denominated in foreign currencies are translatedinto sterling at the rates of exchange ruling at the balance sheet date.Transactions in foreign currencies are recorded at the rate ruling at the dateof the transaction. All differences are taken to profit and loss account. 3 Earnings per shareBasic loss per share has been calculated using the weighted number of shares of49,261,639 (30 June 2004 - 36,213,890 and 31 December 2004 - 37,015,072).Diluted loss per share has been calculated using the weighted average number ofshares of 78,119,582 (30 June 2004 - 50,413,890 and 31 December 2004 -55,634,515). INDEPENDENT REVIEW REPORTUNAUDITED RESULTS FOR THE 6 MONTHS TO 30 JUNE 2005______________________________________________________________ Introduction We have been instructed by the company to review the financial information forthe six months ended 30 June 2005 which comprises the profit and loss account,balance sheet, cash flow statement and related notes set out on pages 1-6. Wehave read the other information contained in the interim report and consideredwhether it contains any apparent misstatement or material inconsistencies withthe financial information. Our responsibilities do not extend to any otherinformation. This report, including the conclusion, has been prepared for and only for thecompany for the purpose of their interim report and for no other purpose. We donot, therefore in producing this report, accept or assume responsibility for anyother purpose or to any other person to whom this report is shown. Directors Responsibilities The interim report, including the financial information contained therein, isthe responsibility of, and has been approved by the directors. The directors areresponsible for preparing the interim report and ensuring that the accountingpolicies and presentation applied to the interim report are consistent withthose applied in preparing the preceding annual accounts except where anychanges, and the reasons for them, are disclosed. Review work performed We conducted our review in accordance with guidance contained in Bulletin 1999/4issued by the Auditing Practices Board for use in the United Kingdom. A reviewconsists principally of making enquiries of management and applying analyticalprocedures to the financial information and underlying financial data and basedthereon, assessing whether the accounting policies and presentation have beenconsistently applied unless otherwise disclosed. A review excludes auditprocedures such as tests of controls and verification of assets, liabilities andtransactions. It is substantially less in scope than an audit performed inaccordance with Auditing Standards and therefore provides a lower level ofassurance than an audit. Accordingly, we do not express an audit opinion on thefinancial information. Review conclusion On the basis of our review we are not aware of any material modification thatshould be made to the financial information as presented for the six monthsended 30 June 2005. Price Bailey LLPChartered AccountantsRichmond HouseBroad StreetEly, Cambs. ENDS For further information:Beowulf Mining plcBob Young: 01353 649 701 Ruegg & Co LimitedBrett Miller: 020 7584 3663 This information is provided by RNS The company news service from the London Stock Exchange