26 Nov 2009 09:07
BERKELEY MINERAL RESOURCES PLC
("BMR" or the "Company")
Preliminary Results for the Year ended 30 June 2009
Berkeley Mineral Resources Plc, the AIM listed mining and processing company, is pleased to announce its results for the year ended 30 June 2009. The results are in line with expectations, following the change in the direction of the business.
Highlights:
Company now focused on metals processing and trading in Zambia
Grant of rights to tailings dumps completed and planned exploitation under way
Initial sales made during the year. Following the recent recovery in base metal prices, sales are expected to continue in the forthcoming period.
Full scale operations scheduled to commence Q2 2010.
Total current metal value of dumps is estimated to be in excess of US$200m
CHAIRMAN'S STATEMENT
Zambia
At the commencement of the period under review, BMR entered into an agreement with Zincorous Investments Limited ("ZIL"), a company registered in Zambia, and Dorset Solutions Limited ("Dorset"), a company registered in Switzerland, granting BMR the mining rights to process zinc and lead from certain tailings dumps at the Kabwe Mine in Zambia.
Subsequently, BMR has announced the acquisition of further mining rights and now possesses those rights to tailing dumps 57, 21 and 22 at Kabwe. Formal completion of the acquisition of rights to dumps 21 and 22 will take place upon receipt of relevant Certificates of Ownership from Zambia Consolidated Copper Mines (ZCCM) and other Zambian authorities, which are expected within the next month.
The estimated reserves in the dumps are as follows:
| Dump 57: | |
| Waeltz Kiln slag | 1.24m tons |
| Grading | 5.49% combined zinc-lead |
| Zinc equivalent | 52,100t |
| Lead equivalent | 16,100t |
| Dump 21 and 22: | |
| Imperial Smelting Furnace (ISF) slag | 588,000 tons |
| Grading | 9.65% combined zinc-lead |
| Zinc equivalent | 46,040t |
| Lead equivalent | 10,701t |
Total current metal value of dumps 57, 21 and 22 is estimated to be in excess of US$200m. The locations of the dumps appear on the Company's updated website at http://www.bmrplc.com.
According to the Company's latest projections, after refurbishment of the on-site gravitational and flotation plant, its Kabwe project should become cash-positive six months after starting production, which is scheduled for Q2 2010. This is based on selling concentrates grading 55% combined zinc-lead. There is established demand for this product in South Africa and Asian markets.
In accordance with the Zambian Government's Copperbelt Environment Project, BMR will be relocating the residues arising from its operations to an environmentally safe site.
In parallel with the granting of mining rights, BMR has entered into a management agreement, commencing immediately, pursuant to which ZIL and Dorset will provide a professional management team for the project for the period up to 1 April 2010 when full scale production is scheduled to commence.
Prior Activities - Voice quality market
The prior activity comprising software and patents has a residual value of £92,575 which we hope to realise.
Going concern
The convertible loan of £300,000 received in November 2007 from Quazer Group Corporation was converted into shares of 1p each in July 2008. The Zambian business represents an attractive opportunity and we have recently announced a placing of shares to raise an additional £170,000 working capital. The Directors are confident in their ability to obtain further finance as necessary to meet further working capital requirements.
Results for the year
The loss for the year ended 30 June 2009 amounted to £409,430 compared with a loss of £2,142,265 for the prior year. The overheads in 2008 included amortisation of intangible assets of £1,710,048.
Outlook
We have waited until base metal prices have staged a recovery before putting in place the next stage of development at our tailings processing business at Kabwe. We look forward to the commencement of production and are now in negotiations with potential off-take partners for the supply of zinc and lead concentrates.
Demand is increasing for both these metals, notably from the Asian automotive industries where China alone is forecast to manufacture in excess of 10 million vehicles annually in 2009 and beyond. At the same time, the pipeline of world base metals production set to come on-stream, especially of lead, is severely limited.
The outlook for the Company is now quite positive; we have acquired the rights to dumps containing significant amounts of metal, we expect to commence full scale production in April 2010 and we expect that the business will be cash generative shortly thereafter.
26 November 2009
M A Alikhani
Chairman
| For further information please contact: | |
|
Berkeley Mineral Resources Plc |
Tel: 020 7408 1181 |
| Masoud Alikhani, Chairman | |
| | |
| Lothbury Financial Limited | Tel: 020 70119411 |
| Michael Padley / Ron Marshman | |
BERKELEY MINERAL RESOURCES PLC
| INCOME STATEMENT | ||||||
| for the year ended 30 June 2009 | ||||||
| 2009 | 2008 | |||||
| £ | £ | |||||
| Sales | 167,718 | - | ||||
| Purchases | (146,014) | - | ||||
| Gross profit | 21,704 | - | ||||
| Administrative expenses | (420,114) | (2,115,150) | ||||
|
| ||||||
| OPERATING LOSS | (398,410) | (2,115,150) | ||||
| Finance income | 829 | 129 | ||||
| Finance costs | (11,849) | (27,244) | ||||
| LOSS BEFORE TAXATION | (409,430) | (2,142,265) | ||||
| Taxation | - | - | ||||
| LOSS FOR THE YEAR | ||||||
| (409,430) | (2,142,265) | |||||
| Loss per ordinary share | - Basic and diluted | (0.16p) | (0.95p) | |||
All recognised gains and losses have been included in the Income Statement.
All of the activities are continuing.
| BALANCE SHEET | |||||
| as at 30 June 2009 | |||||
| 2009 | 2008 | ||||
| £ | £ | ||||
| NON-CURRENT ASSETS | |||||
| Research and development | 92,574 | 182,574 | |||
| Investment | 40,000 | 40,000 | |||
| 132,574 | 222,574 | ||||
| CURRENT ASSETS | |||||
| Trade and other debtors | 27,670 | 9,300 | |||
| Cash and cash equivalents | 95 | 58,649 | |||
| 27,765 | 67,949 | ||||
| TOTAL ASSETS | 160,339 | 290,523 | |||
| CURRENT LIABILITIES | |||||
| Trade and other payables | (1,245,966) | (1,266,720) | |||
| NET CURRENT LIABILITIES | (1,218,201) | (1,198,771) | |||
| TOTAL LIABILITIES | (1,245,966) | (1,266,720) | |||
| NET (LIABILITIES)/ASSETS | (1,085,627) | (976,197) | |||
| EQUITY | |||||
| Share capital | 10,009,771 | 9,709,771 | |||
| Share premium | 2,705,939 | 2,705,939 | |||
| Merger reserve | 1,824,000 | 1,824,000 | |||
| Accumulated loss | (15,625,337) | (15,215,907) | |||
|
|
| ||||
| TOTAL (DEFICIT)/EQUITY | (1,085,627) | (976,197) | |||
|
|
| ||||
| Non-equity shareholders' funds | 195,799 | 195,799 | |||
| Equity attributable to the shareholders of the Company | (1,281,426) | (1,171,996) | |||
| (1,085,627) | (976,197) |
| CASH FLOW STATEMENT | ||||
| for the year ended 30 June 2009 | ||||
| 2009 | 2008 | |||
| £ | £ | |||
| NET CASH OUTFLOW FROM OPERATING ACTIVITIES | (347,534) | (201,563) | ||
| INVESTING ACTIVITIESICING OF FINANCE | ||||
| Interest received | 829 | 129 | ||
| NET CASH GENERATED FROM INVESTING ACTIVITIES | 829 | 129 | ||
|
|
| |||
| FINANCING ACTIVITIES | ||||
| Interest payable | (11,849) | - | ||
| Loan received during the year | - | 300,000 | ||
| Investments | - | (40,000) | ||
| Shares issued | 300,000 | - | ||
| NET CASH USED IN FINANCING ACTIVITIES | 288,151 | 260,000 | ||
| NET (DECREASE)/INCREASE IN CASH AND CASH EQUIVALENTS | (58,554) | 58,566 | ||
| Cash and cash equivalents at beginning of year | 58,649 | 83 | ||
| CASH AND CASH EQUIVALENTS AT END OF YEAR | 95 | 58,649 |
| NOTES TO THE CASHFLOW STATEMENT | |||
| 2009 | 2008 | ||
| £ | £ | ||
| Operating loss from continuing operations | (398,410) | (2,115,150) | |
| Depreciation & amortization of fixed assets | 90,000 | 1,740,421 | |
| Decrease in debtors | (18,370) | 108,144 | |
| Increase in creditors | (20,754) | 65,022 | |
| Net cash (outflow | (347,534) | (201,563) | |
| 6. Statement of changes for the year ended 30 June 2009 | in equity | | | | |
| | | | | | |
| | Share | Share | Merger | Accumulated | Total |
| | capital | premium | reserve | loss | |
| | £ | £ | £ | £ | £ |
| At 1 July 2008 | 9,709,771 | 2,705,939 | 1,824,000 | (15.215.907) | (976,197) |
| Net loss for the period | - | - | - | (409,430) | (409,430) |
| Shares issued | 300,000 | - | - | - | 300,000 |
| | | | | | |
| At 30 June 2009 | 10,009,771 | 2,705,939 | 1,824,000 | (15,625,337) | (1,085,627) |
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