26 Jun 2009 07:00
Beacon Hill Resources plc / Ticker: BHR / Index: AIM / Sector: Mining
26 June 2009
Beacon Hill Resources plc ('Beacon Hill' or 'the Group')
Final Results
Beacon Hill Resources plc, the AIM listed resource company, announces its results for the year ended 31 December 2008.
Highlights
Beacon Hill Chairman Justin Lewis said, "As part of the Group restructuring, we recently initiated a small fundraising to provide additional working capital. We continue to evaluate, and have discussions with, potential opportunities to capitalise on the assets of the Group, including the listing that Beacon Hill has maintained and look forward to making further announcements shortly."
Chairman's Statement
The year under review has been an active one for the Group which has seen a period of reconstruction including the disposal of its interests in mineral sands projects in West Africa ('West African Projects'), a change in the Group's board structure and the implementation of a new strategy aimed at increasing shareholder value through the creation of a diversified mining finance house.
Results
For the year under review, the Group had revenues of £28,772 from the West African Projects and made a loss of £1.727million, which included the loss on disposal of the West African Projects of £0.475 million.
As at 31 December the Group had cash of £107,000 and net assets of £68,335. Since the year end, a further £225,000 (before expenses) has been raised by a placing of shares.
West African Projects
As shareholders are aware, the Group had to cease operations in the Gambia following the expropriation of the joint venture assets, the wrongful cancellation of the mining licence by the Gambian government and the detention of one of the Group's employees. Considerable effort and resources were expended attempting to resolve the dispute, but these were sadly without success. We are, however, very pleased to be able to report that our detained employee was able to leave the country unharmed.
Following this, your Board concluded that it was not economic to pursue its Senegal project in isolation and, as announced on 22 December 2008, the Group disposed of its interests in the West African Projects to its joint venture partner Astron Limited for a cash consideration of A$50,000.
Change of strategy
In conjunction with the disposal of the West African Projects, the Group raised further funds from a new shareholder with a view to developing its agreement with the US Geological survey and to identifying new natural resources assets to develop.
Board changes
Following the disposal of the Group's West African Projects, Alan Hopkins and Boris Matveev left the Board and the Group to pursue new interests. I would like to thank them both for their commitment through difficult times over the last year. Rahul Singh and Geoffrey Chalmers joined the Board during the year to assist in finding new projects and I would also like to thank Tim Jones for his continued guidance and support to the Group throughout this challenging year.
Strategy and Outlook
Since the year end and the disposal of the West African Projects, the Board has sought to develop a strategy that will maximise use of our limited assets, whilst providing a long term return for shareholders.
As part of the Group restructuring, we recently initiated a small fundraising to provide additional working capital. We continue to evaluate, and have discussions with, potential opportunities to capitalise on the assets of the Group, including the listing that Beacon Hill has maintained and look forward to making further announcements shortly.
Justin Lewis
Chairman
26 June 2009
**ENDS**
| Justin Lewis | Chairman, Beacon Hill Resources Plc | +61 (0) 3 8637 1537 |
| Tim Jones | Finance Director, Beacon Hill Resources Plc | +44 (0) 1372 464 549 |
| William Vandyk | Astaire Securities Plc | +44 (0) 20 7448 4400 |
| Hugo de Salis | St Brides Media & Finance Ltd | +44 (0) 20 7236 1177 |
Consolidated income statement
For the year ended 31 December 2008
| Note | 2008 | 2007 | |
| £ | £ | ||
| Revenue - management fees | 28,772 | 81,606 | |
| Administrative expenses | (1,283,391) ________ | (1,218,163) ________ | |
| Operating loss | (1,254,619) | (1,136,557) | |
| Finance income - bank interest | 13,502 | 34,016 ________
| |
| Loss before tax | (1,241,117) | (1,102,541) | |
| Tax expense | - | - ________ | |
| Loss for the year from continuing operations | (1,241,117) | (1,102,541) | |
| Loss from discontinued operations | (485,905) ________ | (650,682) ________ | |
| Loss for the year attributable to equity holders of the parent entity | (1,727,022) ________ | (1,753,223) ________ | |
| Loss per share attributable to equity holders of the parent entity | 2 | ||
| Basic and diluted - from continuing operations | (1.428)p | (1.269)p | |
| - from continuing and discontinued operations | (1.987)p | (3.188)p |
Consolidated statement of recognised income and expense
For the year ended 31 December 2008
| 2008 | 2007 | |
| £ | £ | |
| Foreign exchange gain/(loss) on retranslation of overseas operations | 38,797 ________ | (60,533) ________ |
| Net income/(loss) recognised directly in equity | 38,797 | (60,533) |
| Loss for the year | (1,727,022) ________ | (1,753,223) ________ |
| Total recognised income and expense for the year | (1,688,225) ________ | (1,813,756) ________ |
| Attributable to: Equity holders of the parent company | (1,688,225) ________ | (1,813,756) ________ |
Consolidated balance sheet
As at 31 December 2008
| 2008 | 2007 | |
| £ | £ | |
| Assets Non-current assets Intangible assets | - | 474,991 |
| Property, plant and equipment | 25,706 | 78,603 |
| Interest in joint ventures | - ________ | - ________ |
| 25,706 ________ | 553,594 ________ | |
| Current assets Trade and other receivables | 10,210 | 21,024 |
| Cash and cash equivalents | 107,041 ________ | 215,737 ________ |
| 117,251 ________ | 236,761 ________ | |
| Total assets Liabilities | 142,957 ________ | 790,355 ________ |
| Current liabilities Trade and other payables | 74,622 ________ | 146,672 ________ |
| Total liabilities | 74,622 ________ | 146,672 ________ |
| Net assets | 68,335 ________ | 643,683 ________ |
| Equity attributable to equity holders of parent Share capital | 836,000 | 550,000 |
| Share premium | 1,759,228 | 969,851 |
| Merger reserve | 839,346 | 839,346 |
| Foreign exchange reserve | (14,968) | (53,765) |
| Warrant reserve | 37,500 | 250,000 |
| Retained earnings | (3,388,771) ________ | (1,911,749) ________ |
| Total equity attributable to equity holders of the parent | 68,335 ________ | 643,683 ________ |
Consolidated cash flow statement
For the year ended 31 December 2008
| 2008 | 2007 | |
| £ | £ | |
| Net cash flow from operating activities Loss for the year | (1,727,022) | (1,753,223) |
| Depreciation and amortisation | 7,295 | 13,162 |
| Share-based payment expense | - | 92,877 |
| Loss on disposal of subsidiary undertaking | 474,961 | - |
| Loss on disposal of fixed assets | 18,724 | - |
| Share of losses of joint venture | - | 598,719 |
| Impairment of goodwill | - | 168,875 |
| Capitalised exploration expense | - | (138,147) |
| Interest received | (13,502) | (34,016) |
| Foreign exchange loss | 24,539 | (68,182) |
| Movement in working capital: - trade and other receivables | 10,814 | 57,613 |
| - trade and other payables | (72,050) | 38,472 |
| ________ | ________ | |
| Cash flow from operations | (1,276,241) | (1,023,850) |
| ________ | ________ | |
| Cash flow from investing activities Purchase of property, plant and equipment | - | (10,401) |
| Disposal of property, plant and equipment | 18,541 | 10,650 |
| Proceeds from disposal of subsidiary undertaking | 22,625 | - |
| Interest received | 13,502 | 34,016 |
| ________ | ________ | |
| Net cash flow from investing activities | 54,668 | 34,265 |
| ________ | ________ | |
| Cash flow from financial activities Issue of shares | 1,270,000 | - |
| Share issue costs | (157,123) | - |
| ________ | ________ | |
| Net cash flow used in financing activities | 1,112,877 | - |
| ________ | ________ | |
| Net (decrease)/increase in cash and cash equivalents | (108,696) | (989,585) |
| Cash and cash equivalents at 31 December 2007 | 215,737 | 1,205,322 |
| ________ | ________ | |
| Cash and cash equivalents at 31 December 2008 | 107,041 | 215,737 |
| ________ | ________ | |
| Cash and cash equivalents comprise of: Cash available on demand | 107,041 | 180,603 |
| Short-term deposits | - | 35,134 |
| ________ | ________ | |
| 107,041 | 215,737 | |
| ________ | ________ |
Notes to the preliminary results
For the year ended 31 December 2008
| 1. | Basis of preparation |
The financial information set out in this announcement does not constitute the company's statutory accounts for the years ended 31 December 2008 or 2007, but is derived from those accounts. Statutory accounts for the period ended 31 December 2007, prepared under IFRS, have been delivered to the Registrar of Companies and those for the year ended 31 December 2008 will be delivered following the company's annual general meeting. The auditors reported on these accounts; their reports were unqualified, did not draw attention to any matters by way of emphasis and did not contain a statement under s237(2) or (3) of the Companies Act 1985.
While the financial information included in this preliminary announcement has been prepared in accordance with the recognition and measurement criteria of International Financial Reporting Standards (IFRSs), this announcement does not itself contain sufficient information to comply with IFRSs.
| 2. | Loss per share |
The calculation of basic loss per ordinary share from continuing and discontinued operations, is based on a loss of £1,727,022 (2007 - £1,753,223) and on 86,900,000 ordinary shares (2007 - 55,000,000), being the weighted average number of ordinary shares in issue during the year.
The calculation of basic loss per ordinary share from continuing operations is based on a loss of £1,241,117 (2007 - £1,102,541) and on 86,900,000 ordinary shares (2007 - 55,000,000) being the weighted average number of ordinary shares in issue during the year.
There is no difference between diluted loss per share and the basic loss per share as the Group reported a loss for the year.
Since the year end the company has issued 90,000,000 Ordinary shares. The company has issued share options and warrants over ordinary shares both of which could potentially dilute basic earnings per share in the future.
| 3. | Availability of annual report and accounts |
The Group's full report and accounts will be dispatched to shareholders as soon as practicable and before 30 June 2009. Copies will also be available on the Group's website, www.bhrplc.com. Notice of the AGM will be dispatched to shareholders with the Group's report and accounts.