FML.L Regulatory News (FML)

26 Apr 2005 07:00

Frontier Mining Ltd26 April 2005 April 26, 2005 Quarterly Update for the period ended 31 December 2004 The following financial statements are believed by management to fairlyrepresent the financial position of Frontier Mining Ltd. for the fiscal yearended 31 December 2004. The financial statements for the fiscal year ended December 31, 2003 wereaudited by Ernst & Young Kazakhstan in accordance with International AccountingStandards (IAS). Persons relying on these financial statements for any type of analysis ordecision making are cautioned that the final audited financial statements maybe materially different than presented here. Summarized Unaudited Consolidated Financial Statements For the period ended December 31, 2004 CONSOLIDATED BALANCE SHEET(in US Dollars) Notes December 31, December 31, 2003 2004 (unaudited)ASSETS US$ US$Non-current assetsProperty, plant and equipment, net 229,368 65,075Exploration and Development costs 4,072,660 1,308,658Intangible assets, net 3,873 40,035Investments - -Total Non-current assets 4,305,901 1,413,768Current assetsCash and cash equivalents 3,014,284 882Other current assets 338,035 13,752Total Current assets 3,352,319 14,634 TOTAL ASSETS 7,658,220 1,428,402 SHAREHOLDERS' EQUITY AND LIABILITIESShareholders' equityShare capital 605,709 15,928Additional paid-in-capital 14,423,367 3,931,766Retained earnings (6,287,754) (5,311,533)Net income/loss (2,491,275) (976,221)Total Shareholders' equity 6,250,047 (2,340,060) Provision for exploration expense 98,402 90,985 98,402 -Current liabilitiesShort term debt 752,106 2,613,334Demand notes payable - 495,823Accounts payable 145,603 208,594Other current liabilities and interest accrued 412,063 359,726Total Current Liabilities 1,309,772 3,677,477TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES 7,658,220 1,428,402 Unaudited Statement of Operations Notes December 31, 2004 December 31, (unaudited) 2003 General and administrative expenses 742,922 237,805Gain from disposal of investment in associate - (706)IPO expenses 1,997,358 -Loss from operations 2,740,280 237,099 Finance cost 52,428 739,030 Foreign exchange gain (loss), net (301,433) (14)Loss before taxation 2,491,275 976,115 Taxation - 106 Consolidated Net Loss 2,491,275 976,221 Unaudited Statement of Cash Flows December 31, December 31, 2004 2003 (unaudited)Cash flows from operating activities:Loss before income tax (2,491,275) (976,115)Adjustments for:Depreciation 51,152 32,710Finance costs 52,428 739,030Gain from disposal of investment in associate - (706)Loss from disposal of property and equipment - 8,958(Recovery of) provision for bad debts 44,555 (359,600)Operating (loss) profit before working capital changes (2,343,140) (555,723)Changes in operating assets and liabilities:Decrease (increase) in trade accounts receivable (368,838) 369,712Increase (decrease) in trade accounts payable (70,775) 3,465Increase (decrease) in other current liabilities 59,754 51,001Cash used in operations (379,860) 424,178Income tax paid -Net cash flows from operating activities (2,723,000) (131,545) Cash flows from investing activities:Increase decrease in exploration and development costs (2,764,002) (18,722)Proceeds from disposal of associate - 600Purchase of property and equipment (179,283) -Net cash flows from (used in) investing activities (2,943,285) (18,122) Cash flows from financing activities:Capital contributions 11,081,382 30,000Repayment of short term debts (1,861,228) 238,128Repayment of notes payable (540,467) (130,769)Proceeds from convertible notes - 10,000Net cash used in financing activities 8,679,687 147,359 Net increase/(decrease) in cash and cash equivalents 3,013,402 (2,308) Cash and cash equivalents at the beginning of year 882 3,190Cash and cash equivalents at the end of year 3,014,284 882 Notes to the Accounts 1. General Frontier Mining Ltd ("FML" or 'the Company") was incorporated under the laws ofthe state of Delaware on August 5, 1998, for the purpose of exploring, and ifwarranted, developing gold and copper deposits in the Republic of Kazakhstan. Through its wholly owned subsidiaries, FML Kazakhstan LLP ("FMLK") and BaltemirLLP, FML holds interest in, or is the beneficial owner of, non-producing goldand copper properties in Kazakhstan. The Company is actively exploring itswholly owned Naimanjal and Baltemir contract and license areas. 2. Basis of preparation The preliminary unaudited Financial Statements have been summarized inaccordance with the accounting policies set out in the Company's auditedfinancial statements for the year to December 31, 2003. 3. Share Capital As of 31 December 2004 the Company's authorized share capital is comprised of100,000,000 million ordinary shares of $0.01 par value each. As of 25 April2005 there were 88,196,461 ordinary shares issued and 11,777,217 outstandingoptions and warrants giving 99,973,678 fully diluted ordinary shares of $0.01par value each. To 25 April 2005, 9,552,240 Warrants were exercised at 16.5 pence each providingthe Company with £1,576,119.62 additional proceeds. The ordinary shares issuedupon exercise of warrants are admitted to trading on the Alternative InvestmentMarket of the London Stock Exchange ("AIM") as soon as possible after theirissuance. On 4 March 2005 the Company placed 17,500,000 ordinary shares of $0.01 each ("New Ordinary Shares") with institutional investors in the United Kingdom at aprice of 25 pence per ordinary share to raise £4.375 million before expenses.These New Ordinary Shares were admitted to trading on AIM on March 10, 2005. On 2 September 2004 the Company placed 23,333,334 ordinary shares of $0.01 eachwith institutional investors in the United Kingdom at a price of 15 pence perordinary share to raised £3.5 million before expenses. These ordinary shareswere admitted to trading on AIM on 2 September 2004. On 2 September 2004 £1,271,994 face value Convertible Loan Notes were convertedinto 12,656,657 ordinary shares of $0.01 each at a price of 10.05 pence perordinary share and 12,656,657 warrants to purchase one ordinary shares of $0.01each at a price of 16.5 pence per ordinary share at any time on or before 31December 2005. The 12,656,657 ordinary shares were admitted to trading on AIMon 2 September 2004. On 2 September 2004 24,580,920 ordinary shares of $0.01 each already issued andoutstanding were admitted to trading on AIM. On 2 August 2004 each of the existing ordinary shares of $0.01 par value each inthe capital of the Company was subdivided into 10 ordinary shares of $0.01 parvalue each. On 31 March 2004 the Company issued 250,037 ordinary shares of $0.01 each at aprice of $3.00 per ordinary share, including 200,000 ordinary shares that weregranted to management. On 27 February 2004, by a vote of its shareholders, the Company increased itsauthorized share capital from 2,000,000 ordinary shares to 100,000,000 ordinaryshares of $0.01 par value each. 4. Short-Term Debt As of 30 September 2004 short-term debt, including accrued interest, comprisedthe following: September 30, 2004 2003Loans from directors and management - 1,725,695Debt to related parties 412,106 547,639 412,106 2,273,334Debt to the Trade Development Agency of the United States of America ("TDA") 340,000 340,000 752,106 2,613,334 Loans from directors and management were repaid and converted into shares uponAIM admission 1. Notes Payable The Demand Notes' principal amount and accumulated interest were repaid on 10September 2004. None of the Demand Notes were converted into the Company'sordinary shares of $0.01 each 2. Subsequent events To 25 April 2005, 9,552,240 Warrants were exercised at 16.5 pence each providingthe Company with £1,576,119.62 additional proceeds. The ordinary shares issuedupon exercise of warrants are admitted to trading on the Alternative InvestmentMarket of the London Stock Exchange as soon as possible after their issuance. On 4 March 2005 the Company placed 17,500,000 ordinary shares of $0.01 each ("New Ordinary Shares") with institutional investors in the United Kingdom at aprice of 25 pence per ordinary share to raise £4.375 million before expenses.These New Ordinary Shares were admitted to trading on the Alternative InvestmentMarket of the London Stock Exchange on March 10, 2005. Enquiries Frontier Mining Ltd Brian Savage 020 7849 6530Parkgreen Communications Cathy Malins / Annabel Leather 020 7493 3713 This information is provided by RNS The company news service from the London Stock Exchange