Greatland Resources Regulatory News (GGP)

12 Mar 2008 07:00

Greatland Gold PLC12 March 2008 RNS Announcement Greatland Gold plc ("Greatland Gold") 12 March 2008 Half-yearly report - six months ended 31 December 2007 Managing Director's statement Greatland Gold is an AIM listed mining company focussed on growth throughexploration and development of natural resources, particularly gold. The miningsector has seen a strong resurgence following sweeping increases in metal pricesas demand for metals continues unabated, particularly gold. The gold price hasrallied to record highs, your Board expects further gains to levels never seenbefore, and the AIM mining sector has outperformed the FTSE 350 minersreflecting positive sentiment in the market and the continuing success of AIM. In this dynamic environment the period has been an exciting and active time foryour Company. Exploration activities have been successful in advancing theCompany's properties at Firetower and Warrentinna, in Tasmania, Australia. Bothprojects have returned positive gold results and further sound results areexpected. At Firetower, work has outlined a large mineralised system more than 6km inlength, and only 400m of this has been investigated to date suggesting scope fora large gold resource. The Firetower mineralisation resembles the nearby Hentygold mine owned and operated by Barrick Gold, the world's largest gold miningcompany. Henty is a plus million ounce deposit with a pre-mining resource of2.83 Mt @ 12.5g/t gold. Activities at Firetower have identified goldmineralisation adjacent to our existing 90,000 oz resource. This remains to betested by drilling. The original project area, originally covering 18km ofstrike and hosting the Firetower gold resource, has also been extended to coverover 40km of strike. At Warrentinna, numerous high gold results were returned from surface samplingand mapping of the many historic workings. Results include 464g/t gold (14.9ounces per tonne), 130g/t gold (4.2 ounces per tonne) and 61g/t gold (1.9 ouncesper tonne) confirming the high grade nature of two goldfields in the southernparts of the project area. Both these goldfields cover around 6km of strikeeach which again implies scope for discovery of large resources. An additionaltwo goldfields in the north of the Warrentinna project area are yet to beevaluated. The geology of the Warrentinna project is similar to that of theVictorian goldfields in south eastern Australia. These have produced over 30million ounces of gold since the 1850s. The Company's first reverse circulation(RC) drilling program has recently been completed at the Warrentinna goldfield,one of the southern goldfields of the Warrentinna project. Sulphidemineralisation has been visually confirmed in several of the drill holes.Laboratory gold analyses will be available in the coming weeks. Your Company is focussed on the low cost - high reward phase of mineralexploration and development. Both Tasmanian properties are located close toseveral large gold and base-metal deposits. All of the projects are 100% ownedby Greatland Gold, and were previously operated by major mining companies. Theproperties are located in Australia which has all the advantages of establishedinfrastructure, skilled mining workforce, a resource based economy and politicalstability. Capital raising was successfully completed during July 2007 at a 12.5% premiumto the IPO issue price. Consequently your Company is in a confident cashposition to continue its activities through 2008 and beyond. Spending duringthe period was at budgeted levels, reflecting the sound progress of the Companyand its properties. Along with ongoing exploration at its existing properties,the company also continues to evaluate other investment opportunities and onthis front we are now targeting the acquisition of further projects. Your board, skilled in the mining and finance sectors, remains focussed on theexisting assets, future acquisitions, and growth for the Company. The boardwould like to thank the Company's advisors and investors for their continuedsupport. The Company expects to be able to update shareholders and the marketin the coming weeks, particularly in relation to laboratory gold analyses ofWarrentinna drilling.. Existing and prospective investors may sign up for email announcements at theCompany's website www.greatlandgold.com. Callum N BaxterManaging Director12 March 2008 The unaudited results are as follows: Group income statement 6 months to 6 months to Year ended 31 December 2007 31 December 2006 30 June 2007 Unaudited Unaudited Audited £ £ £ Turnover - 6,212 6,276 Exploration costs (122,380) (127,826) (327,332) Administrative expenses (126,622) (145,568) (283,128) Currency gain/(loss) 11,813 (2,517) 15,552 Operating loss (237,189) (269,699) (588,632) Interest receivable 41,307 14,628 27,306 Loss on ordinary activities (195,882) (255,071) (561,326)before taxation Tax on loss on ordinary - - -activities Loss for the financial period (195,882) (255,071) (561,326) Loss per share - see note 3Basic (0.10) pence (0.24) pence (0.51) pence Group balance sheet 31 December 2007 31 December 2006 30 June 2007 Unaudited Unaudited Audited £ £ £AssetsNon-current assetsTangible assets 6,346 423,212 7,339 Intangible assets 474,397 13,258 463,613 Total non-current assets 480,743 436,470 470,952 Current assets Cash and cash equivalents 2,123,847 758,112 1,241,211 Trade and other receivables 30,398 112,944 60,982 Available for sale financial assets 106,360 78,871 106,203 Total current assets 2,260,605 949,927 1,408,396 Total assets 2,741,348 1,386,397 1,879,348 LiabilitiesCurrent liabilities Trade and other payables (80,990) (99,315) (88,104) Total liabilities (80,990) (99,315) (88,104) Net assets £2,660,358 £1,287,082 £1,791,244 Equity Called up share capital 196,550 106,550 146,550 Share premium reserve 2,955,521 1,224,771 1,936,771 Share option reserve 74,443 - 74,443 Retained losses (784,820) (282,683) (588,938) Other reserves 218,664 238,444 222,418 Total equity £2,660,358 £1,287,082 £1,791,244 Group cash flow statement 6 months to 6 months to Year ended 31 December 2007 31 December 2006 30 June 2007 Unaudited Unaudited Audited £ £ £ Cash flow from operating activitiesOperating loss (237,189) (269,699) (588,632)Decrease/(Increase) in debtors 30,584 (44,974) (18,239)(Decrease) in creditors (7,113) (125,143) (136,354)Depreciation 1,229 - 2,958(Increase) in available for sale - (112,944) -financial assetsShare based payments - - 74,443Currency adjustments (11,166) - (16,788)Cash outflow from operations (223,655) (552,760) (682,612) Cash flows from investingactivitiesInterest received 41,307 14,628 27,306 Purchase of intangible assets (3,766) (13,258) (165,230) Purchase of tangible assets - (131,833) (9,360) Purchase of available for sale - - (122,228)financial assetsNet cash flows used in investing 37,541 (130,463) (269,512)activities Cash inflows from financingactivitiesProceeds from issue of shares 1,125,000 120,000 920,000 Transaction costs of issue of (56,250) 2,687 (45,313)sharesNet cash flows from financing 1,068,750 122,687 874,687activities Net increase/(decrease) in cash and 882,636 (560,536) (77,437)cash equivalents Cash and cash equivalents at thebeginning of period 1,241,211 1,318,648 1,318,648Cash and cash equivalents at end of 2,123,847 758,112 1,241,211period Statements of changes in equity Called up Share Share based Retained Other Total share capital premium payment earnings reserves account reserve Group £ £ £ £ £ £As at 1 July 2006 100,550 1,108,084 - (27,612) 238,444 1,419,466Share capital 46,000 874,000 - - - 920,000issuedCost of share - (45,313) - - - (45,313)issueLoss for the - - - (561,326) - (561,326)period Share based - - 74,443 - - 74,443payments Net unrealised - - - - (16,026) (16,026)losses onavailable for salefinancial assets As at 30 June 2007 146,550 1,936,771 74,443 (588,938) 222,418 1,791,244(audited) As at 1 July 2007 146,550 1,936,771 74,443 (588,938) 222,418 1,791,244 Share capital 50,000 1,075,000 - - - 1,125,000issuedCost of share - (56,250) - - - (56,250)issueLoss for the - - - (195,882) - (195,882)period Net unrealised - - - - (3,754) (3,754)losses onavailable for salefinancial assets As at 31 December 196,550 2,955,521 74,443 (784,820) 218,664 2,660,3582007 (unaudited) Statements of changes in other reserves Merger Foreign currency Net unrealised Total other reserve translation financial assets reserves reserve available for resale reserve Group £ £ £ £As at 1 July 2006 225,000 13,444 - 238,444Net unrealised losses on - - (16,026) (16,026)financial assets available forresale As at 30 June 2007 (audited) 225,000 13,444 (16,026) 222,418 As at 1 July 2007 225,000 13,444 (16,026) 222,418 Net unrealised losses on - - (3,754) (3,754)financial assets available forresale As at 31 December 2007 225,000 13,444 (19,780) 218,664(unaudited) Half-yearly report notes 1. Half-yearly report The information relating to the six month periods to 31 December 2007 and 31December 2006 are unaudited. The information relating to the year to 30 June 2007 is extracted from theaudited financial statements of the Company which have been filed at CompaniesHouse and on which the auditors issued an unqualified audit report. 2. Basis of accounting The report has been prepared using accounting policies and practices that areconsistent with those adopted in the statutory financial statements for theperiod ended 30 June 2007, although the information does not constitutestatutory financial statements within the meaning of section 240 of theCompanies Act 1985. These half-yearly financial statements consolidate the financial statements ofthe Company and its subsidiary and are prepared in accordance with InternationalFinancial Reporting Standards as adopted for use in the European Union. The Company and Group will report again for the full year to 30 June 2008. 3. Loss per share 6 months to 6 months to Year ended 31 December 31 December 30 June 2007 2007 2006 Unaudited Unaudited Audited £ £ £ These have been calculated on a loss (195,882) (255,071) (561,326)of: The weighted average number of shares 190,028,261 104,272,826 110,456,849used was: Basic loss per share: (0.10) pence (0.24) pence (0.51) pence Copies of this half-yearly report are available free of charge by application inwriting to the Company Secretary at the Company's London office, 115 EastbourneMews, London W2 6LQ, or by email to info@greatlandgold.com. Enquiries to: Greatland Gold plc Callum BaxterTel +44 (0)20 7099 5845Email: info@greatlandgold.comwww.greatlandgold.com Grant Thornton Corporate FinanceGerry Beaney / Colin AaronsonTel +44 (0)20 7383 5100Email:gerry.d.beaney@gtuk.comcolin.p.aaronson@gtuk.com End This information is provided by RNS The company news service from the London Stock Exchange