Last checked at 31 Jul 2008 15:06
KRYSO RESOURCES PLC Company Registration Number 0519050 Interim Results for the six-month period ended 30 June 2008 AIM: KYS 31 July 2008Chairman's StatementI am pleased to report that since my last Chairman's statement on 26 June 2008,Kryso Resources plc has received further very encouraging results from itsresource development programme at the Pakrut gold project (`Pakrut') and fromits initial exploration drilling at the Hukas nickel-copper project (`Hukas').
The projects, which are both located in Tajikistan, continue to reward the Company's investment in them, while Tajikistan remains one of the most attractive operating environments in Central Asia. There appears considerable interest from Russian, Chinese and international companies to invest in the country.
At Pakrut, the recent highlight has been the exceptional drill intersection in Ore Zone 1 of 123.7m @ 6.14g/t Au which includes 86m @ 8.48g/t; the true thickness of this intersection is over 70m.
This result, from drilling between 100-200m below the existing adit level,further supports the interpreted trend of the mineralization, which is stillopen at depth and to the east and north. The results from this hole demonstratethat the grade and width of the resource is increasing with depth. Theseresults, together with other results expected from further drill hole samplesrecently sent abroad for fire assaying, will be used to update the existing1.05Moz JORC-compliant resource later this year.In addition a new ore zone (Ore Zone 7) to the south-east of Ore Zone 1 hasbeen confirmed with the completion of the first drill hole at this location.Further drilling from surface will investigate the extent of this new zone andadjacent zones.
Kryso has now successfully completed the geotechnical drilling programme designed to test the proposed open pit and tailings dam. The Company's drill rigs will now be utilized to test the deeper extensions of the Pakrut mineralization and these results will be announced over the coming months
At Hukas, drilling has commenced at the southern margin of the 900m-long TEM (transient electromagnetic anomaly). The first drill hole has intersected sulphide mineralization, which is extremely encouraging as the Company has still 900m of the anomaly to test and the anomaly is still open to the North.
A contractor's drill rig has also intersected sulphide mineralization 400m tothe east of the exposed isolated mineralised Hukas lens which returned averagegrades of 2.86% nickel, 1.26% copper, 0.83% cobalt and 2.3g/t platinum groupmetals; this drilling was carried out to confirm historic Soviet drilling.Although this area was covered by last year's geophysical survey, no anomalywas identified at this location, even though historical drilling as well as theCompany's drilling now confirms that sulphide mineralization exists. Plans arenow underway to further test the surrounding area for further mineralizationand to try to identify further anomalies to those that were not picked uppreviously in the recent geophysical survey.
The amount spent on development work and capitalised during the six months ended 30 June 2008 has doubled compared to the six-month period January to June 2007. The amount capitalised during the current six month period was US$1,727,000.
Administration expenditure has increased by US$14,000 during the six-monthperiod compared to the six-month period January to June 2007, however theoverall loss has increased from US$315,000 to US$409,000. The increased loss isdue to decreased interest revenue from funds on deposit and an exchange lossdue to movements in exchange rates.In April 2008, Kryso Resources plc received a convertible loan of ‚£500,000 fromGreat Basin Gold Limited, a Canadian Company which is listed on the TorontoStock Exchange (TSX) under the symbol GBG, who are our largest shareholdercurrently owning 15% of the company. Full details were announced on 25 April2008.
Lastly I would like to thank shareholders for their ongoing support.
Dr. Trevor DavenportChairman
KRYSO RESOURCES PLC CONSOLIDATED UNAUDITED INCOME STATEMENT FOR THE SIX MONTHS ENDED 30 JUNE 2008
Audited Year ended Six months to Six months to 31 December 30 June 2008 30 June 2007 2007 Note US$'000 US$'000 US$'000Group Revenue - - -Cost of sales - - -Gross Profit - - -Administrative expenses (401) (387) (993)
Exceptional (Loss)/gain on foreign exchange
(30) 31 52Operating Loss (431) (356) (941)Finance income 22 41 71
Loss on Ordinary Activities before Taxation 2
(409) (315) (870)
Tax on loss on ordinary activities - - -Loss on Ordinary Activities after Taxation
(409) (315) (870)
Loss Per Share - basic and diluted
(0.0052) (0.0047) (0.0125)
All of the activities of the Group are classed as continuing.
KRYSO RESOURCES PLC CONSOLIDATED UNAUDITED BALANCE SHEETAS AT 30 JUNE 2008 Audited Year ended Six months to Six months to 31 December 30 June 2008 30 June 2007 2007 US$'000 US$'000 US$'000Non-current AssetsIntangible assets 11,849 8,508 10,122Tangible assets 250 425 462 12,099 8,933 10,584Current AssetsInventories 714 393 621Debtors 396 274 327
Cash and cash equivalents
637 1,120 1,586 71,747 1,787 2,534Current Liabilities (1,418) (83) (281)Net Current Assets 329 1,704 2,253
Total Assets less Current Liabilities
12,428 10,637 12,837
Equity
Called-up equity share capital
1,481 1,227 1,481
Share premium account
13,033 10,554 13,033Retained earnings (2,086) (1,144) (1,677)Total Equity 12,428 10,637 12,837
KRYSO RESOURCES PLC CONSOLIDATED UNAUDITED CASH FLOW STATEMENT FOR THE SIX MONTHS ENDED 30 JUNE 2008
Audited Year ended Six months to Six months to 31 December 30 June 2008 30 June 2007 2007 US$'000 US$'000 US$'000
Net Cash Outflow from Operating Activities (446) (594) (1,213)Returns of Investments and Servicing of FinanceInterest received 22 41 71Net Cash Inflow from Returns on Investmentsand servicing of finance 22 41 71Capital Expenditure and Financial InvestmentPayments to acquire intangible fixed assets (1,516) (790) (2,187)Payments to acquire tangible fixed assets (7) (30) (311)Net cash outflow from Investing Activities (1,523) (820) (2,498)Cash Outflow before Financing Activities
(1,947) (1,373) (3,640)Financing
Issue of Equity Share Capital (Net of Issue Costs) - - 2,733Receipt of Convertible Loan 998 - -Net Cash Inflow from Financing Activities 998 - 2,733Decrease in Cash and Cash Equivalents
(949) (1,373) (907)
Cash and cash equivalents at beginning of period 1,586 2,493 2,493Cash and cash equivalents at end of period 637 1,120 1,586Reconciliation of Operating Loss to Net CashOutflow from Operating ActivitiesOperating loss (431) (356) (941)Depreciation 8 5 32Share based payments - - 22Increase in inventories (93) (169) (397)Increase in debtors (69) (38) (91)
Increase/(decrease) in creditors 139 (36) 162Net Cash Outflow from Operating Activities (446) (594) (1,213)
KRYSO RESOURCES PLC CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE SIX MONTHS ENDED 30 JUNE 2008
Capital Share Retained Total premium earnings equity US$'000 US$'000 US$'000 US$'000
Balance at 1 January 2007
1,227 10,554 (829) 10,952
Recognised income and expenses
- - (315) (315)Balance at 30 June 2007 1,227 10,554 (1,144) 10,637
Recognised income and expenses
- - (555) (555)Share based payment - - 22 22New Shares issued 254 2,479 - 2,733Balance at 31 December 2007
1,481 13,033 (1,677) 12,837
Recognised income and expenses
- - (409) (409)Balance at 30 June 2008 1,481 13,033 (2,086) 12,428
KRYSO RESOURCES PLC NOTES TO THE INTERIM FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE 2008
1. Accounting Policies
Basis of Accounting
These unaudited interim financial statements were approved for issue by the Kryso Resources plc Board of Directors on 31 July 2008.
This financial information has been prepared in accordance with the recognitionand measurement criteria of International Financial Reporting Standards (IFRS)as adopted by the European Union and IFRIC Interpretations. The financialinformation has been prepared under the historical cost convention. The annualfinancial statements are prepared in accordance with IFRS as adopted by theEuropean Union. The same accounting policies are followed in the interimfinancial information as applied in the Group's latest annual audited financialstatements.
As permitted, the Group has chosen not to adopt IAS 34 "Interim Financial Statements" in preparing this interim financial information.
The Group has applied consistent accounting policies in preparing the consolidated interim financial statements for the six months ended 30 June 2008, the comparative information for the six months ended 30 June 2007, and the financial statements for the year ended 31 December 2007.
These interim results are unaudited and do not constitute statutory financialstatements as defined in section 240 of the Companies Act 1985.The functionalcurrency of the Group is US dollars and accordingly the amounts in the interimresults are denominated in that currency. The balance sheet rates of exchangefor the US dollar to UK Sterling were US$1.9954 to: ‚£1.The statutory financial statements for Kryso Resources plc for the year ended31 December 2007 received an unqualified Auditors Report and have been filedwith the Registrar of Companies.
Basis of Consolidation
The consolidated interim results incorporate the interim results of the Companyand all Group undertakings. These are adjusted, where appropriate, to conformto Group accounting policies. Acquisitions are accounted for under theacquisition method and goodwill on consolidation is capitalised and the valueof this goodwill is reviewed on a periodic basis. The results of companiesacquired or disposed of are included in the Group income statement after or upto the date that control passes respectively.
Exploration and Development expenditure
Exploration expenditure is written off in the year in which it is incurred.When a decision is taken that a mining property becomes viable for commercialproduction, all further pre-production development expenditure is capitalised.Capitalisation of pre-production expenditure ceases when the mining property iscapable of commercial production.
Capitalised research and development expenditure is amortised upon commencement of production using a suitable method based on the volumes of proved and probable reserves of ore and are written off if the property is abandoned.
2. Operating Loss
Operating loss is stated after charging/(crediting):
Year ended
Six months to Six months to 31 December
30 June 2008 30 June 2007 2007
US$'000 US$'000 US$'000
Depreciation of owned fixed assets 218 206 450Less transfer to exploration cost (210) (201) (418)Auditors' remuneration - as auditors
9 8 22- non-audit services 2 2 2
For further information, please contact:
Vassilios Carellas/Craig Brown, Kryso Resources plc. Tel: 020 7371 0600
Brett Miller/Roxane Marffy, Ruegg & Co Ltd.Tel: 020 7584 3663Richard Hail, Fox-Davies Capital LimitedTel: 020 7936 5230Christian Dennis, Orbis Equity Partners LimitedTel: 01359 239 029
Background Information on Kryso Resources plc
Kryso Resources controls 100% of the exploration rights to the Pakrut gold project, which lies within the highly prospective Tien-Shan gold belt. Kryso also controls 100% of the exploration rights to the Hukas nickel-copper project.
The Company is managed by a team with a proven track record of operating in Tajikistan, which it considers to be among the most attractive operating environments in Central Asia.
The main deposit at Pakrut currently has a JORC-compliant resource in excess ofone million ounces of gold and the Company aims to increase this resource witha further update later this year. Drilling at Pakrut continues to returnexciting intersections, including 123.7m @ 6.14g/t, 42m @ 11.17g/t and 50m @5.67g/t Au.
The Company envisages annual production for 2010 of 100,000 oz per annum from a combined open pit and underground mine.
A geophysical survey over a large section of the Hukas nickel-copper project has been completed, and a drill programme is currently underway.
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