EVE.L Regulatory News (EVE)

27 Sep 2007 12:30

Everfor Diamonds PLC27 September 2007 AIM: EVE PRESS RELEASE 27 September 2007 Everfor Diamonds plc Interim Results for the Period Ended 30 June 2007-------------------------------------------------------------------------------- Everfor Diamonds plc ("Everfor", or the "Company") (AIM:EVE), the AIM-listeddiamond exploration company exploring in the north west of the RussianFederation announces its interim results for the period ended 30 June 2007. All amounts are presented in UK pounds sterling. Executive Chairman, Dr Sergey V Kurzin commented: "Everfor maintained its kimberlite exploration impetus in the first half of 2007with drilling continuing at two of its four licences within Russia's KolaPeninsula. The Company has raised no funds since early 2006 and it willtherefore be necessary to seek additional financing to allow us to continue ourassertive exploration programmes in the forthcoming 18 months." ENDS-------------------------------------------------------------------------------- Notes to Editors: Everfor Diamonds plc was formed in January 2004 with the specific intention ofexploring in the Russian Federation. This was based upon a positive technicalassessment by the then geological consultant (now Managing Director), whichhighlighted the untapped potential of the Kola Peninsula. The extensive networkof contacts available to the Executive Chairman allowed swift applications forground to be made and four licence areas for diamond prospecting were granted.The Pulongskaya and Ermakovskaya licences contain core areas whereclose-interval sampling and some geophysical surveying has taken place byprevious explorers. Two known kimberlites are located in the Ermakovskayalicence.-------------------------------------------------------------------------------- For further information please contact: David Swan, Finance Director & Company Secretary, Everfor Diamonds plcTel: +44 (0) 20 7514 0590 Donald Duncan, Managing Director, Everfor Diamonds plcTel: +44 (0)20 7514 0590 Gavin Dallas, Marketing and PR, Everfor Diamonds PlcTel: +44 (0)20 7514 0590 Ryan Gaffney, Canaccord Adams LimitedTel: +44 (0) 20 7050 6500 www.everfor.com Everfor Diamonds plc Interim Report for the six months ended 30 June 2007 Executive Chairman's Statement Market sentiment in the first half of 2007 eschewed diamond explorationcompanies with early-stage exploration projects such as those being undertakenby Everfor, in favour of projects with identified resources. However, arealisation is taking place that there are few, if any, near-productionkimberlite projects left to acquire or in which to invest and there has beensome movement towards projects targeting alluvial diamonds. The projected supply-demand imbalance in rough diamonds continues to show thatits foundations are based in reality and although alluvial rough diamondscommand high prices, they are and will continue to be a relatively scarce, lowvolume commodity, compared to the rough product from kimberlites. In recent months there has been some consolidation of diamond explorationcompanies on AIM, together with the acquisition of, or diversification into,other commodities. These possibilities have and are being explored by Everfor.If and when it is in the Company's best interests to follow either route,appropriate recommendations will be made to our shareholders. In the meantime, Everfor maintained its kimberlite exploration impetus in theearly part of the year with drilling taking place in two of its four licences,although no kimberlites were intersected. In other areas, such asadministration, the Company has made efforts to constrain expenditure andpreserve funds. New airborne magnetic anomalies in the Tulomo-Teriberskaya licence are to betested and results are due imminently from priority samples in both this licencearea and from the Varzugskaya property on the White Sea Coast. No funds have been raised since early 2006 and it will be necessary to seekadditional finance to allow us to continue our assertive exploration programmesin the forthcoming 18 months. Review of Operations Drilling A warmer than expected winter resulted in drilling not starting until March,when ice thicknesses were finally sufficient to allow vehicle access to the workareas. Drilling began in the Pulongskaya licence in the south east of the KolaPeninsula, on geophysical anomalies in the area known as Blue Lake. Fouranomalies were drilled (totalling 141 metres) but no kimberlites wereintersected, although the rocks encountered explained the sources of theanomalies. In Ermakovskaya, 72 holes (totalling 771 metres) were drilled with a lightweightrig, over geophysical magnetic anomalies with expected thin overburden. Nokimberlites were intersected. Drilling was planned in Tulomo-Teriberskaya but had to be postponed when one rigbroke through thin ice on a river crossing and had to be recovered. No furtherdrilling has yet taken place. Airborne Surveying Results of the 1,750 km2 airborne magnetic survey carried out in 2006 in theeast of the Tulomo-Teriberskaya licence were received in May. A total of 86 anomalies were interpreted, of which three are graded as ofsuperior interest, ten as high interest and twenty as requiring further supportbefore follow-up work takes place. The remainder are assessed as being of nofurther interest as their cause may be cultural (houses, bridges, vehicles orpower lines) or formational (discrete extensions of known geological units). Sample Results To date, Kimberlite Indicator Mineral examinations have been undertaken on 5,186of the total of 6,645 samples collected. Table 1 - Sampling Statistics Licence 2004 2005 2006 Total Sample density/ Samples Samples Samples km2 (average)Pulongskaya 917 691 - 1,608 0.50Varzugskaya 728 468 614 1,810 2.50Ermakovskaya 856 774 132 1,762 0.88Tulomo-Teriberskaya 570 584 311 1,465 2.55 Despatch of approximately 500 priority samples (of those remaining) tospecialist laboratories was only able to be effected in August 2007 due to anumber of changes in export regulations. Results are expected within the nexttwo months. The chemistries of approximately 1,850 indicator minerals from a total of 475positive samples have been analysed by electron microprobe. Discrete areaswithin the Pulongskaya and Tulomo-Teriberskaya licences contain indicatorminerals of superior chemical interest indicating the probable presence ofdiamondiferous kimberlites. Reconnaissance-level sampling (1 sample per 2.5 km2)of Varzugskaya was undertaken in 2006 but no results are yet available and sothere is no change in the view that this is a licence which should containkimberlites. Results from Ermakovskaya do not indicate any areas of elevatedinterest, although indications are that kimberlites should be present. However,they would be of moderate interest at best with respect to diamond content. Future work Much of the planned future work depends upon the geographical correlationbetween samples of superior indicator mineral chemistry and the presence ofgeophysical anomalies in the up-ice direction. In several locations, this isachievable with the current and expected data but other areas will requirefurther sampling or geophysical surveying. Further drilling will be required totest the anomalies which will be identified as being of interest. Dr Sergey V KurzinExecutive Chairman27 September 2007 The Interim Report for the period ended 30 June 2007 is available for downloadfrom the Company's website (www.everfor.com). Everfor Diamonds plc Interim Report for the six months ended 30 June 2007 Condensed consolidated interim income statement for the six months ended 30 June2007 Six months Six months ended ended 30 June 2007 30 June 2006 (Unaudited) (Unaudited) £'000 £'000 Operating expenses (235) (465) ------------ -----------Operating loss (235) (465) Finance income 12 21Finance expenses - - ------------ ----------- Loss before taxation (223) (444) Taxation - - ------------ ----------- Net loss for the financial period (223) (444) Attributable to:Equity shareholders of the parent (203) (423)Minority interest (20) (21) ------------ ----------- (223) (444) ============ ===========Loss per shareBasic and diluted (0.21)p (0.51)p All amounts above relate to continued operations. Everfor Diamonds plc Interim Report for the six months ended 30 June 2007 Condensed consolidated interim balance sheet for the six months ended 30 June2007 At 30 June At 30 June At 31 December 2007 2006 2006 (Unaudited) (Unaudited) (Unaudited) £'000 £'000 £'000ASSETSNon-current assetsProperty, plant and equipment 2 4 4Intangible assets 3,182 3,407 3,182 ---------- --------- ----------Total non-current assets 3,184 3,411 3,186 Current assetsTrade and other receivables 187 326 193Cash and cash equivalents 411 1,114 656 ---------- --------- ----------Total current assets 598 1,440 849 ---------- --------- ----------Total assets 3,782 4,851 4,035 ========== ========= ========== EQUITY AND LIABILITIES Current liabilitiesTrade and other payables 61 102 105 ---------- --------- ----------Total current liabilities 61 102 105 ---------- --------- ----------Total liabilities 61 102 105 ========== ========= ========== Capital and reservesCalled up share capital 989 989 989Share premium account 4,111 3,821 4,111Merger reserve 1,950 1,950 1,950Foreign currency translation reserve (4) 197 (6)Retained earnings (3,688) (2,668) (3,498) ---------- --------- ----------Equity attributable to shareholdersof the parent 3,358 4,289 3,546 Minority interests 363 460 384 ---------- --------- ----------Total equity and liabilities 3,782 4,851 4,035 ========== ========= ========== Everfor Diamonds plc Interim Report for the six months ended 30 June 2007 Condensed consolidated interim cash flow statement for the six months ended 30June 2007 Six months Six months ended ended 30 June 2007 30 June 2006 (Unaudited) (Unaudited) £'000 £'000Cash flows from operating activitiesLoss from ordinary activities (235) (465)Adjustments for:Depreciation of property, plant andequipment 1 2Share based payments 13 52Foreign exchange differences 4 - ---------- ---------Cash flow from operating activity beforechanges in working capital (217) (411)Increase in trade and other receivables 6 (76)(Decrease)/increase in trade and otherpayables (45) 24 ---------- ---------Cash used by operations (256) (463)Interest paid - -Income tax paid - - ---------- ---------Net cash used in operating activities (256) (463) ---------- --------- Investing activitiesInterest income 12 21 ---------- ---------Cash flows from investing activities 12 21 ---------- --------- Financing activitiesIssue of ordinary shares (Net of issuecost) - 1,106 ---------- -----------Cash flows from financing activities - 1,106 ---------- ----------- (Decrease)/increase in cash (244) 664Cash and cash equivalents at 1 January 656 448Effect of exchange rate changes on cashand cash equivalents (1) 2 ---------- -----------Cash and cash equivalents at end of theperiod 411 1,114 ========== =========== Everfor Diamonds plc Interim Report for the six months ended 30 June 2007 Condensed consolidated interim statement of recognised income and expense forthe six months ended 30 June 2007 Six months Six months ended ended 30 June 2007 30 June 2006 (Unaudited) (Unaudited) £'000 £'000 Exchange translation differences onconsolidation of Group entities 2 207 ---------- ---------Net profit recognised directly in equity 2 207 Loss for the financial period (223) (444) ---------- --------- Total recognised income and expense forthe financial period (221) (237) ========== ========= Attributable to:Equity shareholders of the parent (200) (216)Minority interest (21) (21) ---------- --------- (221) (237) ========== ========= ENDS-------------------------------------------------------------------------------- This information is provided by RNS The company news service from the London Stock Exchange