Goldstone Resources Regulatory News (GRL)

22 Nov 2006 12:50

Goldstone Resources Ltd22 November 2006 GOLDSTONE RESOURCES LIMITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 AUGUST 2006 Chief Executive's Report I am setting out below a review of GoldStone's activities during the 6 monthsended 31st August 2006, which incorporates an update on the current status ofthe Company's projects. GOLD PROGRAMME IN GUYANA The low tenor of gold intersections made in the most prospective palaeoplacersduring the overall drilling programme in Lease Areas 'A' and 'B' in Guyana, ledthe Board to conclude that the likelihood of finding economical grades was poor. In view of these results, the Company withdrew its prospecting licenceapplications and therefore ceased the gold exploration programme in Guyana. BAUXITE In September 2005, GoldStone entered into an option agreement with BHP Billitonover the Company's bauxite interests in Guyana. An initial programme waslaunched to explore the bauxite potential in the lease areas. This programmeconfirmed the deposits previously identified by GoldStone. BHP Billiton accordingly made payment during September 2006 of the option fee ofUS$100,000 required to maintain the option until 6 June 2007. Further, more detailed, sampling is planned and this programme has nowcommenced. FINANCING The Company's cash resources are currently approximately US$2.8 million. BOARD Mr Mike Christie, a non-executive director of the Company sadly passed awayduring July 2006. APPROVAL Dr Lawrie Minter, who holds a PhD in Palaeoplacer Sedimentology, has reviewedand approved the content of this announcement. SUMMARY The disappointing results from the gold exploration programme caused the Boardduring the period under review to terminate any further exploration forpalaeoplacer gold deposits in Guyana. The bauxite exploration continues under the terms of the agreement with BHPBilliton, which is funding the programme. The Company has significant cash resources and the Board is currently reviewingthe potential acquisition of an alluvial diamond project. Nico van der HovenChief Executive Officer 16th November 2006 PROFIT AND LOSS ACCOUNTS 6 Months ended 6 Months ended 12 Months ended 31 August 2006 31 August 2005 28 February 2006 TurnoverExploration Expenses (582,273) (2,204,449) (2,498,919) Gross Loss (582,273) (2,204,449) (2,498,919) Management fee Income 39,722 0 55,556Other operating expenses (217,482) (738,931) (1,361,673)Interest receivable 70,155 36,584 87,161 OPERATING LOSS FOR THE PERIOD (689,878) (2,906,796) (3,717,875) Balance brought forward - (deficit) (12,977,437) (9,259,562) (9,259,562) Balance brought forward - (deficit) (13,667,315) (12,166,358) (12,977,437) Loss per ordinary share Basic (cents per share) (0.7) (4.7) (3.8) BALANCESHEET 6 Months ended 6 Months ended 12 Months ended 31 August 2006 31 August 2005 28 February 2006 FIXED ASSETS Tangible assets 95,099 451,499 135,826 CURRENT ASSETS Debtors and prepayments 43,689 0 394,563 Cash at bank 2,988,989 615,580 3,321,151 3,032,679 615,580 3,715,714 CREDITORS: amounts fallingdue within one year Creditors and accruals (35,947) (168,791) (69,831) (35,947) (168,791) (69,831) Net current assets 2,996,732 446,789 3,645,883 TOTAL ASSETS 3,091,831 898,288 3,781,709 CAPITAL AND RESERVES Share capital 2,354,482 1,122,982 2,354,482 Share premium 13,849,554 11,386,554 13,849,554 Capital contribution 555,110 555,110 555,110 reserve Profit and loss - (13,667,315) (12,166,358) (12,977,437)(deficit) 3,091,831 898,288 3,781,709 CASH FLOW STATEMENT 6 Months ended 6 Months ended 12 Months ended 31 August 2006 31 August 2005 28 February 2006 Reconcilliation of operating profit/(loss)to net cash inflow from operating activities Operating loss (689,878) (2,906,796) (3,717,875) Adjusted for:Depreciation 40,726 9,969 81,004Finance raising costs 0 0 111,263Interest Received (70,155) (36,585) (87,155)Decrease in Debtors 350,874 2,529 (392,034)Decrease in Creditors (33,884) (356,713) (455,672) Net cash outflow from operating activities (402,317) (3,287,595) (4,460,469) CASH FLOW STATEMENT Net cash outflow from operating activities (402,317) (3,287,595) (4,460,469) Returns on investment and servicing of 70,155 36,585 87,154finance Capital expenditure 0Purchase of Fixed Assets (5,362)Sale of Fixed Assets 250,000 (332,162) (3,251,011) (4,128,677) Financing 0 0 3,583,237 Decrease in cash (332,162) (3,251,011) (545,440) Reconciliation of net cash flow to movement innet debt Decrease in cash in the period (332,162) (3,251,011) (545,440)Net Funds 1 March 2006 3,321,151 3,866,591 3,866,591 Net Funds at 31 August 2006 2,988,989 615,580 3,321,151 NOTES 1 Earnings per share Basic earnings per share is calculated by dividing the losses attributable to ordinary shareholders by the weighted average number of ordinary shares in issue after the placing on the AIM. Diluted earnings per share is calculated using the weighted average number of ordinary shares in issue as adjusted to assume conversion of all dilutive potential ordinary shares. FRS 14: Earnings Per Share ('EPS'), requires presentation of diluted EPS when a company could be called upon to issue share that would decrease net profit or increase net loss per share. For a loss making company with outstanding warrants, net loss per share would only be increased by the exercise of warrants of out-of-the-money warrants. Since it seems inapropriate to assume that option holders would act irrationally, no adjustment has been made to diluted EPS for out-of-the-money warrants 6 Months ended 6 Months ended 12 Months ended 31 August 2006 31 August 2005 28 February 2006 Earnings per share Loss attributable to shareholders (689,878) (2,906,796) (3,717,875) No. No. No.Weighted average number ofordinary shares 96,608,315 62,400,000 96,608,315 Basic loss per share (cents) (0.7) (4.7) (3.8) 2 Basis of Preparation The financial information in this report has been prepared in United States Dollars under the historical cost convention and in accordance with accounting standards applicable in the United Kingdom. This information is provided by RNS The company news service from the London Stock Exchange