Last checked at 28 Feb 2013 07:00
KARELIAN DIAMOND RESOURCES PLC - Half-yearly ReportKARELIAN DIAMOND RESOURCES PLC - Half-yearly Report
PR Newswire
London, February 27
Karelian Diamond Resources plc (AIM: KDR; ESM: KDR.I), the diamond explorationcompany focused on Finland, announces its results for the six months ended 30November 2012.
Highlights:
* Further microdiamonds identified in Seitaperä pipe * Additional diamondiferous indicator minerals discovered in Riihivaara * Applications made for further licences in FinlandProfessor Richard Conroy, Chairman, said:
"The results of your Company's exploration programme in Finland continue toencourage us to believe that diamond discoveries could be made in the Finnishsector of the Karelian Craton comparable to the world class diamond deposits inthe Russian sector of the Craton."
Further Information:
Professor Richard Conroy, Chairman/ Karelian Diamond Tel: +353-1-661-8958Resources plc
Simon Clements/Virginia Bull/ Merchant Securities Limited Tel:(Nomad) +44-20-7628-2200 Jon Belliss/XCAP Securities PLC (Broker) Tel: +44-20-7101-7070Brian Farrell/IBI Corporate Finance Limited (ESM Adviser) Tel +353-766-234-800
Michael Padley/Michael Spriggs/ Lothbury Financial Tel:Services +44-20-7868-2567 Don Hall/ Hall Communications Tel: +353-1-660-9377Visit the website at: www.kareliandiamondresources.com
CHAIRMAN'S STATEMENT Dear Shareholder,I have great pleasure in presenting your Company's Interim Report for the sixmonths ended 30 November 2012, a period of continued progress for your Company.
The recovery of microdiamonds in the mantle xenolith identified during thisyear's drilling confirmed that the xenolith encountered was diamondiferous. Itis a further indication of the diamond potential of the Seitaperädiamondiferous kimberlite pipe, which at 6.9 hectares is the largest knownkimberlite pipe discovered to date in Finland.
The microdiamonds most recently identified in your Company's Seitaperä pipe arewhite in colour, transparent and octahedral. The broken nature of themicrodiamond suggests the possibility of larger stone sizes. This is ofrelevance both in the exploration of the pipe and its diamond and economicpotential.
These results, in conjunction with the discovery by your Company ofdiamondiferous indicator minerals during a sampling programme at nearbyRiihivaara, indicate that there is more than one source of diamonds in theKuhmo area and enhances the overall diamond potential of the area in which theyare located. Applications for further exploration licences in the area havetherefore been made.
Work has continued on the integration of the extensive database made availableto your the Company under its agreement with Rio Tinto arising from this,applications have been made for additional exploration licences outside theKuhmo area in this highly exciting Finnish region of the Karelian Craton.
Karelian's exploration programme in Finland is based on the existence inFinland of similar geology to that in the Russian sector of the Karelian Cratonin which two world class diamond discoveries have been made - Lomonosov and theGrib Diamond Pipe and it is your Company's aim to make a similar large scalediamond discovery in Finland.
Finance
The results for the six months ended 30 November 2012 are set out below. Theloss for the period was €72,545 (2011: loss €84,691). The net assets of theCompany at 30 November 2012 were €4,491,981 (2011: €4,609,197).
Outlook
Karelian looks forward to further progress with the diamond interest in Finlandand continues to review other opportunities that may arise.
Directors and Staff
I would like to thank my fellow directors, staff and consultants for theirsupport and dedication, which has enabled the continued success of the Company.I look forward to the future with confidence.
Yours faithfully, Professor Richard ConroyChairman 28 February 2013 INCOME STATEMENT FOR HALF-YEAR ENDED 30 NOVEMBER 2012 Six months Six months Year ended ended ended 30 November 30 November 31 May 2012 2011 2012 (Unaudited) (Unaudited) (Audited) € € € OPERATING EXPENSES (65,531) (77,907) (194,582) Finance income - bank interest - 5 97receivable Finance costs - interest on (7,014) (6,790) (13,495)shareholder loan LOSS BEFORE TAXATION (72,545) (84,692) (207,980) Taxation - - - LOSS FOR THE YEAR (72,545) (84,692) (207,980) Loss per ordinary share - basic (€0.0008) (€0.0009) (€0.0023)and diluted STATEMENT OF COMPREHENSIVE INCOME FOR HALF-YEAR ENDED 30 NOVEMBER 2012 Six months Six months Year ended ended ended 30 November 30 November 31 May 2012 2011 2012 (Unaudited) (Unaudited) (Audited) € € € LOSS FOR PERIOD (72,545) (84,692) (207,980) Total income and expense - - -recognised in other comprehensiveincomeTOTAL COMPREHENSIVE INCOME FOR THE (72,545) (84,692) (207,980)PERIOD - ENTIRELY ATTRIBUTABLE TO
EQUITYHOLDERS STATEMENT OF FINANCIAL POSITION AS AT 30 NOVEMBER 2012 30 November 30 November 31 May 2012 2011 2012 (Unaudited) (Unaudited) (Audited)ASSETS € € € Non-current Assets Intangible assets 6,581,906 6,154,525 6,390,694 Investment in Subsidiary 4 4 4 Property, plant and equipment 417 585 501 6,582,327 6,155,114 6,391,199 Current Assets Trade and other receivables 43,574 8,551 47,382 Cash and cash equivalents 24,282 203,917 10,054 67,856 212,468 57,436 Total Assets 6,650,183 6,367,582 6,448,635 EQUITY AND LIABILITIES Capital and Reserves Called up share capital 922,083 922,083 922,083 Share premium 4,621,158 4,621,158 4,621,158 Share based payments reserve 412,598 333,981 375,039 Retained losses (1,463,858) (1,268,025) (1,391,313) Total Equity 4,491,981 4,609,197 4,526,967 Non-current Liabilities Financial Liabilities 1,107,283 812,665 1,007,214 Total Non-current Liabilities 1,107,283 812,665 1,007,214 Current Liabilities Trade and other payables 1,050,919 945,720 914,454 Total Current Liabilities 1,050,919 945,720 914,454 Total Liabilities 2,158,202 1,758,385 1,921,668 Total Equity and Liabilities 6,650,183 6,367,582 6,448,635 STATEMENT OF CHANGES IN EQUITY FOR THE HALF-YEAR ENDED 30 NOVEMBER 2012 Share-based Retained Share Share Payment Earnings Total Capital Premium Reserve (Deficit) Equity € € € € € At 1 June 2012 922,083 4,621,158 375,039 (1,391,313) 4,526,967 Share-based payments - - 37,559 - 37,559 Loss for the period - - - (72,545) (72,545) At 30 November 2012 922,083 4,621,158 412,598 (1,463,858) 4,491,981 Share-based Retained Share Share Payment Earnings Total Capital Premium Reserve (Deficit) Equity € € € € € At 1 June 2011 922,083 4,261,158 292,921 (1,183,333) 4,652,829 Share issue - - - - - Share premium - - - - - Share-based payments - - 41,060 - 41,060 Loss for the period - - - (84,692) (84,692) At 30 November 2011 922,083 4,621,158 333,981 (1,268,025) 4,609,197 CASH FLOW STATEMENT FOR THE HALF-YEAR ENDED 30 NOVEMBER 2012 Six months Six months Year ended ended ended 30 November 30 November 31 May 2012 2011 2012 (Unaudited) (Unaudited) (Audited) € € € Cash flows from operating activitiesCash generated/(used in) by operations 74,703 (56,031) (58,631)
Tax paid - - - Net cash generated by/(used in) 74,703 (56,031) (58,631)operating activities Cash flows from investing activities Investment in exploration and (160,544) (360,965) (509,687)evaluationNet cash used in investing activities (160,544) (360,965) (509,687)
Cash flows from financing activities Issue of share capital - - - Advances of shareholder loan 100,069 - - Repayment of shareholder loan - (125,000) (125,000) Bank interest received - 5 97 Interest paid on shareholder loan - - (42,633) Net cash (used in)/generated from 100,069 (124,995) (167,536)financing activities(Decrease)/Increase in cash and cash (14,228) (541,991) (735,854)equivalents
Cash and cash equivalents at beginning 10,054 745,908 745,908of period
Cash and cash equivalents at end of 24,282 203,917 10,054period NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 30 NOVEMBER 20121. Basis of preparation
The half-yearly financial statements have been prepared on the basis of therecognition and measurement requirements of International Financial ReportingStandards (IFRS) as adopted by the European Union (EU), and theirinterpretations adopted by the International Accounting Standards Board (IASB).The accounting policies used in the preparation of the half-yearly financialinformation are the same as those used in the Company's audited financialstatements for the year ended 31 May 2012.
2. Earnings per share
The calculation of the loss per ordinary share of €0.0008 (2011 - €0.0009) isbased on the loss for the financial year of €72,545 (2011 - €84,692) and theweighted average number of ordinary shares in issue during the year of92,208,342 (2011 - 92,208,342).
Since the Company incurred a loss the effect of share options and warrantswould be anti-dilutive.
3. Dividends
No dividends were paid or are proposed in respect of the period ended 30November, 2012.
4. Copy of half yearly report
A copy of the half yearly report will be available on the Company's websitewww.kareliandiamondresources.com and will be available from the Company'sregistered office, 10 Upper Pembroke Street, Dublin 2.