26 Nov 2010 07:00
BERKELEY MINERAL RESOURCES PLC
("BMR" or the "Company")
Preliminary Results for the Year ended 30 June 2010
Berkeley Mineral Resources Plc, the AIM-listed mining and processing company, is pleased to announce its results for the year ended 30 June 2010.
Highlights:
·; Initial tailings dumps acquired in October 2009
·; The Company acquired an option to secure the rights to process the remaining stockpiles of lead and zinc at Kabwe Mine, Zambia in June 2010.
·; The stock piles are estimated to contain approximately 7 million tons of high grade lead and zinc tailings.
Highlights post year end:
·; The Company continues to work to complete the proposed acquisition of the tailings dumps at Kabwe, Zambia.
·; The capital costs of the planned processing plant and working capital to commence operations are funded.
·; The Company continues to investigate further opportunities in the tailings processing sector.
Masoud Alikhani, Chairman of Berkeley Mineral Resources Plc, commented:
"This has been a year during which the Company has moved forward and, subject to the acquisition being concluded, one where BMR completes its transformation to an environmental friendly mining company. We are looking to complete the acquisition at Kabwe as soon as practicable especially as the capital costs of our planned processing plant are now funded."
For further information please contact: | |
Berkeley Mineral Resources Plc | |
Masoud Alikhani, Chairman | 020 7408 1181 |
Seymour Pierce | |
Stewart Dickson / Jonathan Wright (Corporate Finance) Jeremy Stephenson / Richard Redmayne (Corporate Broking) | 020 7107 8000 |
Lothbury Financial Services | |
Michael Padley / Gary Middleton | 020 7868 2010 |
CHAIRMAN'S STATEMENT
Acquisition
During the year under review, BMR announced the acquisition of the additional tailings dumps at Kabwe and the securing of an option over the remaining stockpiles at Kabwe. Completion of the acquisition of the tailings dumps at Kabwe has not yet been completed and finalisation of the transaction is continuing.
The three tailings dumps acquired to date total 1.83 million tons of ore containing 98,140 tons of zinc and 21,840 tons of lead. On securing the remaining dumps BMR will hold an estimated 7.14 million tons of ore containing various metals, primarily lead and zinc.
Share and warrant issues
During the year to 30 June 2010, 109,902,100 shares were issued for a total consideration before expenses of £2,028,042 to finance the planned acquisition and to provide working capital.
Results for the year
The loss for the year ended 30 June 2010 amounted to £508,513 (2009:£409,430). The majority of the loss comprises management and administrative expenses and costs associated with the acquisition.
Post year end developments
Acquisition
The Company is continuing the work necessary to complete the acquisition of the tailings stockpiles at Kabwe. Once the acquisition is complete the leading South African mining consultants The Mineral Corporation, will provide the resource verification to JORC-compliant Measured and Indicated Resource standard for the washplant slimes section of the stockpiles.
When the tailings dumps are fully acquired 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.
Under an agreement for the processing rights to all the tailings dumps at Kabwe, the Company has contracted to issue 80 million ordinary shares of 1p each of the Company and pay $3 million in cash.
Share and warrant issues
Since the year end, a further 444,842,261 shares have been issued for a total consideration before expenses of £11,776,250 to substantially fund the construction and commissioning of a planned zinc and lead processing plant and provide working capital to commence operations. These shares include 68,333,334 shares issued to warrant holders at an exercise price of 3p per share giving a consideration of £2,050,000. A further 188,571,428 shares in respect of unexercised warrants at an exercise price of 9p per share remain unissued.
Summary
The Company has made significant progress in the last financial year and this has continued into the present one. We are optimistic that the acquisition of the remaining tailings at Kabwe will be completed in the not too distant future and we have also identified other potential targets that we could acquire. Our focus remains on concluding the Kabwe acquisition and bringing the site into production as quickly as possible.
M A Alikhani 25 November 2010
Chairman
BERKELEY MINERAL RESOURCES PLC
INCOME STATEMENT | ||||||
for the year ended 30 June 2009 | ||||||
2010 | 2009 | |||||
£ | £ | |||||
Sales | - | 167,718 | ||||
Purchases | - | (146,014) | ||||
Gross profit | - | 21,704 | ||||
Administrative expenses | (499,966) | (420,114) | ||||
OPERATING LOSS | (499,966) | (398,410) | ||||
Finance income | 25 | 829 | ||||
Finance costs | (8,572) | (11,849) | ||||
LOSS BEFORE TAXATION | (508,513) | (409,430) | ||||
Taxation | - | - | ||||
LOSS FOR THE YEAR | ||||||
(508,513) | (409,430) | |||||
Loss per ordinary share | - Basic and diluted | (0.18p) | (0.16p) | |||
All recognised gains and losses have been included in the Income Statement.
All of the activities are continuing.
BALANCE SHEET | |||||
as at 30 June 2010 | |||||
2010 | 2009 | ||||
£ | £ | ||||
NON-CURRENT ASSETS | |||||
Property and equipment | 402,456 | 45,148 | |||
Research and development | - | 87,426 | |||
402,456 | 132,574 | ||||
CURRENT ASSETS | |||||
Trade and other debtors | 436,944 | 27,670 | |||
Cash and cash equivalents | 142,234 | 95 | |||
579,178 | 27,765 | ||||
TOTAL ASSETS | 981,635 | 160,339 | |||
CURRENT LIABILITIES | |||||
Trade and other payables | (639,983) | (1,245,966) | |||
NET CURRENT LIABILITIES | (60,805) | (1,218,201) | |||
TOTAL LIABILITIES | (639,983) | (1,245,966) | |||
NET (LIABILITIES)/ASSETS | 341,652 | (1,085,627) | |||
EQUITY | |||||
Share capital | 11,108,792 | 10,009,771 | |||
Share premium | 3,542,710 | 2,705,939 | |||
Merger reserve | 1,824,000 | 1,824,000 | |||
Accumulated loss | (16,133,850) | (15,625,337) | |||
TOTAL (DEFICIT)/EQUITY | 341,652 | (1,085,627) | |||
Non-equity shareholders' funds | 195,799 | 195,799 | |||
Equity attributable to the shareholders of the Company | 145,853 | (1,281,426) | |||
341,652 | (1,085,627) |
CASH FLOW STATEMENT | ||||
for the year ended 30 June 2010 | ||||
2010 | 2009 | |||
£ | £ | |||
NET CASH OUTFLOW FROM OPERATING ACTIVITIES | (1,425,224) | (347,534) | ||
INVESTING ACTIVITIES OF FINANCE
| ||||
Property, plant & equipment | (359,882) | - | ||
Interest received | 25 | 829 | ||
NET CASH GENERATED FROM INVESTING ACTIVITIES | (359,857) | 829 | ||
FINANCING ACTIVITIES | ||||
Interest payable | (8,572) | (11,849) | ||
Shares issued | 1,935,792 | 300,000 | ||
NET CASH USED IN FINANCING ACTIVITIES | 1,927,220 | 288,1510 | ||
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS | 142,139 | (58,554) | ||
Cash and cash equivalents at beginning of year | 95 | 58,649 | ||
CASH AND CASH EQUIVALENTS AT END OF YEAR | 142,234 | 95 |
NOTES TO THE CASHFLOW STATEMENT | |||
2010 | 2009 | ||
£ | £ | ||
Operating loss from continuing operations | (499,966) | (398,410) | |
Depreciation & amortization of fixed assets | 89,999 | 90,000 | |
Increase/(Decrease) in debtors | (409,274) | (18,370) | |
Decrease/(Increase) in creditors | (605,983) | (20,754) | |
Net cash outflow | (1,425,224) | (347,534) | |
Notes to the Preliminary Statement:
1. General information and accounting policies
Berkeley Mineral Resources PLC is a company incorporated in the United Kingdom under the Companies Act 1985.
This Announcement is for the preliminary results for the year ended 30 June 2010.
2. Basis of accounting
The accounting policies for the preliminary announcement are consistent with those applied in the preparation of the audited financial statements for the year ended 30 June 2010 which have been prepared in accordance with the International Financial Reporting Standards ("IFRS"). The financial information has also been prepared in accordance with IFRS adopted for use in the European Union and therefore complies with Article 4 of the EU IAS Regulation. The audited financial statements for the year ended 30 June 2009 were prepared in accordance with IFRS.
The financial information has been prepared on the historical cost basis, except for certain financial instruments which are carried at fair value or historical cost and in accordance with IFRS.
3. Preliminary results for the year ended 30 June 2010.
The financial information presented for the year cover the period from 1 July 2009 to 30 June 2010. The comparative figures cover the period from 1 July 2008 to 30 June 2009. Whilst the financial information for the year ended 30 June 2010 contained in this announcement has been computed in accordance with IFRS, this announcement does not itself contain sufficient information to comply with IFRS.
The preliminary report, for the 12 month period, which was approved by the directors on 24 November 2010, does not comprise full accounts within the meaning of the Companies Act 2006.
4. The directors do not recommend the payment of a dividend.
5. The loss per share of 0.18 pence (2009: loss 0.16 pence) has been calculated on the basis of the loss of £508,513 (2009: loss £409,430) and on 281,691,724 (2009: 253,991,686) ordinary shares, being the weighted average number of ordinary shares in issue during the year ended 30 June 2009.
6. Statement of changes in equity for the year ended 30 June 2010 | |||||
Share |
Share |
Merger |
Accumulated |
Total | |
capital | premium | reserve | loss | ||
£ | £ | £ | £ | £ | |
At 1 July 2009 | 10,009,771 | 2,705,939 | 1,824,000 | (15.625,337) | (1,085,627) |
Net loss for the period | - | - | - | (508,513) | (508,513) |
Shares issued | 1,099,021 | 929,021 | - | - | 2,028,042 |
Share issue expenses | - | (92,250) | - | - | (92,250) |
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At 30 June 2010 | 11,108,792 | 3,542,710 | 1,824,000 | (16,133,850) | 341,652 |
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7. Commitments
Under an Agreement for the processing rights to all the tailing dumps at Kabwe, the Company has contracted to issue 80 million ordinary shares of 1p each and pay $3 million in cash for the processing rights to tailing dumps in the Kabwe region of Zambia.
8. Post balance sheet events
Since the year end, a further 444,842,261 shares have been issued for a total consideration before expenses of £11,776,250 to substantially fund the construction and commissioning of a planned zinc and lead processing plant and provide working capital to commence operations. These shares include 68,333,334 shares issued to warrant holders at an exercise price of 3p per share giving a consideration of £2,050,000. At the date of this report, a further 188,571,428 shares in respect of unexercised warrants at an exercise price of 9p per share remain unissued.
9. Posting of Report & Accounts
The Company confirms that copies of the annual report and accounts for the year ended 30 June 2010 will be sent to all shareholders before 26 November 2010 and will be available during normal business hours from the offices of Seymour Pierce Limited at 20 Old Bailey, London EC4M 7EN. In addition, the annual report and accounts will be available to be downloaded from the Company's website at www.bmrplc.com