Last checked at 24 Sep 2009 07:00
Date: 24 September 2009
GCM RESOURCES PLC
(AIM: GCM)
PRELIMINARY RESULTS
FOR THE YEAR ENDED 30 JUNE 2009
GCM Resources plc remains fully committed to the Phulbari Coal Project ("the Project") in Bangladesh. The Company believes it can provide the fastest, lowest risk and most reliable means of delivering the commercial energy required to bring a step-change in electricity access and availability for the people of Bangladesh.
Phulbari Project Update
The successful Parliamentary elections held in Bangladesh on 29 December 2008 brought to an end a period of almost two years during which the country was governed by Caretaker Governments under a state of emergency. These democratic elections returned a government with an overwhelming majority and which publicly recognises the importance of energy security to the future development of Bangladesh. The provision of power and energy, including the development of coal mines and coal-fired power generation, was one of the five priority issues in the manifesto of the incoming Government.
Since the election, GCM has re-engaged and promoted the Project with the new Government and their advisors as they evaluate options to address the energy and electrical power shortfall that the country is experiencing. GCM will continue to engage with the Government and other stakeholders to move the Project forward and will announce to the market any material developments of which it becomes aware.
Other Investments
GCM has investments in a number of other junior mining companies. During the 2009 financial year an interest in Polo Resources Limited was acquired for £2.8 million and joint venture activities with Aura Energy Limited in West Africa continued to be supported. In line with equity markets in general, and junior mining companies in particular, the value of listed investments has fallen from the highs experienced in mid-2008 but overall, their market value is still double the cash invested.
Through all its investments, GCM aims to help bring about further economic and social development for all stakeholders. It aims to do this in a safe and sustainable way, paying full regard to the interests and concerns of local communities and the environment in which it operates.
Financial Review
The Group made a loss of £5.7 million after tax for the twelve months to 30 June 2009 (June 2008: profit of £0.9 million). An impairment charge of £5.4 million has been incurred, predominantly in relation to some of the Group's listed equity investments. The profit for 2008 included £2.5 million profit on the deemed disposal of GCM's investment in CCEC Ltd on its takeover by Regent Pacific Group Limited.
Evaluation expenditure relating to the Phulbari Coal Project was £2.8 million for the year to 30 June 2009 (June 2008: £2.5 million).
As at 30 June 2009 GCM held cash of £1.4 million and listed equity investments of £20.2 million. The combined value of cash and listed equity investments as of 23 September 2009 was £30.0 million, equivalent to 59p per GCM share.
The Income Statements, Statement of Changes in Equity, Balance Sheet and Cash Flow are presented on the following pages.
Consolidated Income Statement for year ended 30 June
| 2009 | 2008 | ||
| £000 | £000 | ||
| Operating expenses | |||
| Exploration costs | 353 | 139 | |
| Administrative expenses | 1,578 | 1,806 | |
| Operating loss | (1,931) | (1,945) | |
| Exceptional items | (5,563) | 2,486 | |
| Finance revenue | 188 | 742 | |
| (Loss)/profit before tax | (7,306) | 1,283 | |
| Taxation | 1,614 | (419) | |
| (Loss)/profit for the year | (5,692) | 864 | |
| (Loss)/earnings per share | |||
| Basic (pence per share) | (11.2)p | 1.8p | |
| Diluted (pence per share) | (11.2)p | 1.6p |
Consolidated Statement of Changes in Equity for year ended 30 June
| | Share Capital | Share premium account | Other reserves | Accumulated losses | Total |
| | £000 | £000 | £000 | £000 | £000 |
| | | | | | |
| Balance at 1 July 2007 | 4,881 | 42,731 | 4,073 | (1,901) | 49,784 |
| | | | | | |
| Change in fair value of available-for-sale financial assets | - | - | 31,587 | - | 31,587 |
| Tax on items taken directly to equity | - | - | (8,148) | - | (8,148) |
| Transfer to income statement on disposal of available-for-sale financial assets | - | - | (2,486) | - | (2,486) |
| Share based payments | - | - | 122 | - | 122 |
| Profit for the financial year | - | - | - | 864 | 864 |
| Equity share warrants exercised | 220 | 1,433 | - | - | 1,653 |
| | | | | | |
| Balance at 30 June 2008 | 5,101 | 44,164 | 25,148 | (1,037) | 73,376 |
| | | | | | |
| Change in fair value of available-for-sale financial assets | - | - | (26,958) | - | (26,958) |
| Available-for-sale financial assets impaired | - | - | 4,430 | - | 4,430 |
| Tax on items taken directly to equity | - | - | 6,308 | - | 6,308 |
| Share based payments | - | - | 72 | 5 | 77 |
| Loss for the financial year | - | - | - | (5,692) | (5,692) |
| | | | | | |
| Balance at 30 June 2009 | 5,101 | 44,164 | 9,000 | (6,724) | 51,541 |
Consolidated Balance Sheets as at 30 June
| 2009 | 2008 | ||
| £000 | £000 | ||
| Current assets | |||
| Cash and cash equivalents | 1,355 | 10,047 | |
| Receivables | 542 | 776 | |
| Total current assets | 1,897 | 10,823 | |
| Non-current assets | |||
| Property, plant and equipment | 173 | 241 | |
| Intangible assets | 26,571 | 23,710 | |
| Financial assets | 24,890 | 48,799 | |
| Total non-current assets | 51,634 | 72,750 | |
| Total assets | 53,531 | 83,573 | |
| Current liabilities | |||
| Payables | 358 | 643 | |
| Total current liabilities | 358 | 643 | |
| Non-current liabilities | |||
| Deferred tax liabilities | 1,632 | 9,554 | |
| Total non-current liabilities | 1,632 | 9,554 | |
| Total liabilities | 1,990 | 10,197 | |
| Net assets | 51,541 | 73,376 | |
| Equity | |||
| Share capital | 5,101 | 5,101 | |
| Share premium account | 44,164 | 44,164 | |
| Other reserves | 9,000 | 25,148 | |
| Accumulated losses | (6,724) | (1,037) | |
| Total equity | 51,541 | 73,376 |
Consolidated Cash Flow Statement for year ended 30 June
| 2009 | 2008 | ||
| £000 | £000 | ||
| Cash flows from operating activities | |||
| Loss/profit before tax | (7,306) | 1,283 | |
| Adjusted for: | |||
| Exceptional | 5,563 | (2,486) | |
| Finance revenue | (188) | (742) | |
| Other non cash expenses | 21 | 15 | |
| (1,910) | (1,930) | ||
| Movements in working capital: | |||
| (Increase) in operating receivables | (290) | (77) | |
| (Decrease)/increase in operating payables | (257) | 211 | |
| Cash used in operations | (2,457) | (1,796) | |
| Interest received | 226 | 770 | |
| Net cash used in operating activities | (2,231) | (1,026) | |
| Cash flows from investing activities | |||
| Payments for property, plant and equipment | (19) | (19) | |
| Payments for intangible assets | (2,745) | (2,172) | |
| Payments for investments | (3,697) | (5,321) | |
| Net cash used in investing activities | (6,461) | (7,512) | |
| Cash flows from financing activities | |||
| Issue of ordinary share capital | - | 1,653 | |
| Net cash generated by financing activities | - | 1,653 | |
| Total decrease in cash and cash equivalents | (8,692) | (6,885) | |
| Cash and cash equivalents at the start of the year | 10,047 | 16,932 | |
| Cash and cash equivalents at the end of the year | 1,355 | 10,047 | |
The audited financial information for the years ended 30 June 2009 and 30 June 2008 contained in this document do not constitute statutory accounts as defined in the Companies Act 1985. The comparative financial information is based on the statutory accounts for the financial year ended 30 June 2008. Those accounts, upon which the auditors issued an unqualified opinion with an emphasis of matter paragraph, have been delivered to the Registrar of Companies. The financial information for the year ended 30 June 2009 has been extracted from the financial statements of GCM Resources plc which will be delivered to the Registrar of Companies in due course. The auditors have issued an unqualified opinion with a similar emphasis of matter paragraph on the Group's statutory financial statements for the year ended 30 June 2009. The preliminary announcement was approved by the Board of Directors on 23 September 2009.
For further information:
| GCM Resources plc Steve Bywater Chief Executive +44 (0) 20 7290 1630 Graham Taggart Finance Director +44 (0) 20 7290 1630 | Pelham Charles Vivian 44 (0)207 337 1538 Klara Kaczmarek +44 (0)207 337 1524 |
| J.P. Morgan Cazenove Nominated Adviser Michael Wentworth-Stanley Steve Baldwin +44 (0) 207 588 2828 |
| GCM Resources plc | |
| Tel: +44 (0) 20 7 290 1630, Fax: +44 (0) 20 7290 1631 | |
| info@gcmplc.com; www.gcmplc.com |