30 Jun 2008 16:39
AIM: EVE
PRESS RELEASE
30 June 2008
Everfor Diamonds plc
Final Results for the Year Ended 31 December 2007
Everfor Diamonds plc ('Everfor', or the 'Company') (AIM:EVE) the AIM-listed diamond exploration company, announces its audited results for the year ended 31 December 2007.
Executive Chairman, Dr Sergey V Kurzin commented:
"Everfor is undergoing a restructuring and has implemented a new strategy to invest in the mining of natural resources of any nature whatsoever primarily in Russia, Kazakhstan and Kyrgyzstan. We have also implemented changes to the Board, which enhance the already strong management team currently in place."
Executive Chairman's Statement
I hereby present Everfor Diamonds Plc's ("Everfor", "Company") financial results for the year ended 31 December 2007. As per the Company announcement of 5 June, 2008, the Board and I were disappointed that the exploration programme in the Kola Peninsula has not been successful.
Although the Company initially received positive technical assessments of the license areas, highlighting the possible untapped potential of the Kola Peninsula in Russia, the on-going work programme was not identifying any targets likely to be of commercial interest. The Directors therefore considered that it was in the Company's best interests to stop work and return its licences to the Government of the Russian Federation.
As announced, and after the relinquishments of the Company's diamond exploration licenses, the Company will effectively become a cash shell. Everfor's new investment strategy will be to invest in the mining of natural resources of any nature whatsoever primarily in Russia, Kazakhstan and Kyrgyzstan.
In diamonds, the trend (as in much of AIM) has been towards the consolidation of smaller companies and "buy-outs" of near-production resources by the larger, better-funded players. Companies whose licences have included the right to prospect for other minerals as well as diamonds have frequently benefited from "spin-outs". Everfor only had diamond explorations rights.
Generally poor market sentiment towards exploration companies from mid-late 2007 onwards meant that exploration funds were difficult to secure unless the company in question also had exploitable (or near-exploitable) resources. Approaching the final year of Everfor's licences, the decision had to be made as to whether further exploration, requiring additional funding, would result in a discovery within the time remaining. In addition, very recent trends within Russian Federation legislation regarding strategic minerals including diamonds would have made further operations more complicated.
I am delighted Mr Petro Mychalkiw has agreed to join the Everfor board. His financial experience will complement our existing high quality team. I would also like to thank Messrs David Swan and Donald Duncan for their contribution and support of the Company. I would like to express my appreciation for the professional attitudes and efforts of the Company's employees and for the co-operation of the Russian Government.
During the Company's EGM held today, it was agreed to re-name and re-structure the company in readiness for new opportunities.
Dr Sergey V Kurzin
Executive Chairman
30 June, 2007
The full 2007 Annual Report of the Company is available for download from the Company's website (www.everfor.com) and has been sent to shareholders.
Everfor Diamonds plc
Consolidated income statement for the year ended 31 December 2007
|
| 2007 | 2006 | ||
| £'000 | £'000 | |||
| Exploration expenses | (96) | (444) | ||
| Provision in respect of exploration licenses | (3,182) | - | ||
| Exploration expenses | (3,278) | (444) | ||
| Other operating expenses | (448) | (962) | ||
| Operating loss | (3,726) | (1,406) | ||
| Finance income | 20 | 40 | ||
| Loss before taxation | (3,706) | (1,366) | ||
| Taxation | - | - | ||
| Loss for the year | (3,706) | (1,366) | ||
| Attributable to: | ||||
| Equity shareholders of the parent | (3,322) | (1,275) | ||
| Minority Interest | (384) | (91) | ||
| (3,706) | (1,366) | |||
| Loss per share - basic and diluted | (3.36)p | (1.44)p | ||
Consolidated statement of changes in equity for the year ended 31 December 2007
| Called up share capital | Share premium | Merger reserve | Translation reserve | Retained earnings | Total shareholders equity | Minority Interest | Total | |
| £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | |
|
At 1 January 2006
| 581 | 3,122 | 1,950 | - | (2,313) | 3,340 | 475 | 3,815 |
| Currency translation differences and net income recognised directly in equity | - | - | - | 25 | - | 25 | - | 25 |
| Loss for the year | - | - | - | (1,275) | (1,275) | (91) | (1,366) | |
| Total recognised income and expense for the year | - | - | - | 25 | (1,275) | (1,250) | (91) | (1,341) |
| Issue of share capital (net of issue costs) | 408 | 989 | - | - | - | 1,397 | - | 1,397 |
| Share based payments | - | - | - | - | 59 | 59 | - | 59 |
|
At 1 January 2007
| 989 | 4,111 | 1,950 | 25 | (3,529) | 3,546 | 384 | 3,930 |
| Currency translation differences and net expense recognised directly in equity | - | - | - | (54) | - | (54) | - | (54) |
| Loss for the period | - | - | - | - | (3,322) | (3,322) | (384) | (3,706) |
| Total recognised income and expense for the year | - | - | - | (54) | (3,322) | (3,376) | (384) | (3,760) |
| Share based payments | - | - | - | - | 20 | 20 | - | 20 |
| At 31 December 2007 | 989 | 4,111 | 1,950 | (29) | (6,831) | 190 | - | 190 |
Consolidated balance sheet as at 31 December 2007
| 2007 | 2006 | ||
| £'000 | £'000 | ||
| ASSETS | |||
| Non current assets | |||
| Intangible assets | - | 3,182 | |
| Property, plant and equipment | 2 | 4 | |
| 2 | 3,186 | ||
| Current assets | |||
| Trade and other receivables | 26 | 193 | |
| Cash and cash equivalents | 260 | 656 | |
| 286 | 849 | ||
| Total Assets | 288 | 4,035 | |
| EQUITY AND LIABILITIES | |||
| Current liabilities | |||
| Trade and other payables | 98 | 105 | |
| Total current liabilities | 98 | 105 | |
| Equity | |||
| Called up share capital | 989 | 989 | |
| Share premium | 4,111 | 4,111 | |
| Merger reserve | 1,950 | 1,950 | |
| Translation reserve | (29) | 25 | |
| Retained earnings | (6,831) | (3,529) | |
| Equity attributable to shareholders of the parent | 190 | 3,546 | |
| Minority interests | - | 384 | |
| Total equity | 190 | 3,930 | |
| Total Equity and Liabilities | 288 | 4,035 | |
|
|
Consolidated cash flow statement for the year ended 31 December 2007
| 2007 | 2006 | ||
| £'000 | £'000 | ||
| Operating activities | |||
| Loss before taxation | (3,706) | (1,366) | |
| Depreciation | 2 | 4 | |
| Finance income | (20) | (40) | |
| Share based payments | 20 | 59 | |
| Foreign exchange losses | (54) | 30 | |
| Provision in respect of exploration licenses | 3,182 | - | |
| Decrease in trade and other receivables | 167 | 57 | |
| (Decrease)/ increase in trade and other payables | (7) | 27 | |
| Net cash flows from operating activities | (416) | (1,229) | |
| Investing activities | |||
| Interest received | 20 | 40 | |
| Net cash flows from investing activities | 20 | 40 | |
| Financing activities | |||
| Issue of ordinary shares (net of issue costs) | - | 1,397 | |
| Cash inflow from financing | - | 1,397 | |
| (Decrease)/ Increase in net cash and cash equivalents in the year | (396) | 208 | |
| Cash and cash equivalents at the beginning of the year | 656 | 448 | |
| Cash and cash equivalents at the end of the year | 260 | 656 |
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For further information please contact:
Tania Tchedaeva, Company Secretary, Everfor Diamonds plc
Tel: +44 (0) 20 7514 0590
Gavin Dallas, Investor Relations, Everfor Diamonds plc
Tel: +44 (0)20 7514 0590
Ryan Gaffney / Henry Fitzgerald-O'Connor, Canaccord Adams Limited
Tel: +44 (0) 20 7050 6500
www.everfor.com
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