16 Oct 2009 07:00
MAGHREB MINERALS PLC
Preliminary Results for the Year Ended 30 June 2009
Maghreb Minerals Plc ("Maghreb" or the "Company"), the AIM-listed exploration company developing base and industrial mineral deposits in Tunisia, announces its preliminary results for the year ended 30 June 2009.
HIGHLIGHTS
The focus of the Group this year has been to:
Complete the mining and metallurgical scoping studies on the Bou Jabeur - Gite Est deposit.
Complete the minimum work requirements required to renew the Group's existing portfolio of exploration permits including over three past producing mines.
Minimise the Group's operating costs as much as possible.
Seek strategic, industry partners to develop further the highly prospective Pb/Zn interests of the Group.
Financial Position
The Group had approximately £237,000 in cash resources as at 30 June 2009 (2008 - £1.2 million).
The Directors are confident that further investment can be attracted to the Company to pursue its expansion into the fluorspar sector internationally.
Equally, discussions are in progress to introduce partners into the Pb/Zn portfolio.
Bou Jabeur - Gite Est
Mining and metallurgical scoping studies by the Scott Wilson Mining Group and SGS Lakefield Europe were completed.
Fej Lahdoum
The Group has qualified, and applied, for its right to a 90 per cent earn-in which has been approved and is in the process of being gazetted. Fluorspar and Other Permits
The drilling and geology work programme on the four Fluorspar permits was completed.
Limited drilling was undertaken at Fej Lahdoum targeted at testing possible extensions to the north-west of the known Zn-Pb resource at the Dar N'Hal Nord deposit. With the exception of MFL33, all drill holes to date (MFL31 - MFL37) have intersected mineralisation.
The Group has completed the exploration work requirements necessary to renew all of its permits. All permits are in good standing.
Other
The Group and its major shareholders are actively pursuing opportunities to increase the Group's portfolio, to include producing assets, in the fluorspar sector internationally.
Commenting on Maghreb's prospects, Richard Linnell, Chairman, said:
"The state of the credit and stock markets worldwide has caused Maghreb Minerals Plc to re-evaluate its position and curtail its exploration programme as much as possible within the constraints of previously committed contractual obligations and the need to preserve its exploration permit ("EP") portfolio in Tunisia during this financial year.
The Company's approach will be to focus more on its fluorspar assets, where it will be pursuing other opportunities both corporate and organic in this area to increase its exposure to the fluorspar sector with the support of the Company's major shareholder.
Based on the results of the Bou Jabeur - Gite Est scoping study, the Company will endeavour to find an industry partner to assist in advancing this prospective project, possibly in conjunction with the other Pb/Zn projects that the Company has in its portfolio. Whilst we are pursuing this option, shareholders must be aware of the current economic circumstances and recognise that this process could take some significant time."
| ENQUIRIES: | |
| Maghreb Minerals Plc | |
| Richard Collier, Chief Executive Officer | Tel: 0207 556 0940 |
| Hanson Westhouse Limited | |
| Tim Metcalfe / Martin Davison | Tel: 0207 601 6100 |
Notes to editors:
Maghreb Minerals plc is a mineral exploration company exploring for, and developing, base metals and industrial minerals in Tunisia. For further information, please visit www.maghrebminerals.co.uk
CHAIRMAN'S STATEMENT
The state of the credit and stock markets worldwide has caused Maghreb Minerals Plc (the "Group" or "Maghreb") to re-evaluate its position and curtail its exploration programme as much as possible within the constraints of previously committed contractual obligations and the need to preserve its exploration permit ("EP") portfolio in Tunisia during this financial year.
The previously contracted mining and metallurgical scoping studies, by the Scott Wilson Mining Group and SGS Lakefield Europe respectively, were completed for the Bou Jabeur - Gite Est deposit in March 2009 and the minimum work programmes to preserve the ten EPs with an exploration pipeline of zinc, lead, fluorite and associated silver projects at various stages ranging from a completed scoping study (such as Bou Jabeur - Gite de l'Est), through advanced exploration (such as Fej Lahdoum) to early stage exploration (such as Djebel Lorbeus) was completed by the second half of June 2009. The geology programme is focused now on field work using the Group's inhouse geology team and the drilling programme has been stopped until circumstances improve.
The Group had approximately £237,000 in cash resources as at 30 June 2009 (2008 - £1.2 million).
Discussions are in progress to introduce partners into the Pb/Zn portfolio to provide expertise and additional funding to facilitate the recommencement of the Group's activities in its Pb/Zn EP portfolio.
As you will expect your Board is constantly monitoring the financial position of the Company and shareholders will be informed as soon as possible on developments.
A review of the exploration permits is included in the Operations Report. The Company's approach will be to focus more on its fluorspar assets, where it will be pursuing other opportunities both corporate and organic in this area to increase its exposure to the fluorspar sector with the support of your Company's major shareholder, Firebird Global Master Fund II Ltd.
Based on the results of the Bou Jabeur - Gite Est scoping study, the Company will endeavour to find an industry partner to assist in advancing this highly prospective project, possibly in conjunction with the other Pb/Zn projects that the Company has in its portfolio. Whilst we are pursuing this option, shareholders must be aware of the current economic circumstances and recognise that this process could take some significant time.
There have been changes to the Group's Board of Directors. On 1 August 2008, Anthony Allen, who brings to the Board a long track record of corporate finance and advisory experience, was appointed as a non-executive director. In October 2008, Robyn Storer resigned from the Board. On 18 November 2008, Gordon Riddler stepped down as Chairman and retired from the Company with effect from 31 December 2008. I would like to thank them both for their valuable contribution to the development of the Company.
On 18 November 2008, James Passin, Albert Gourley and I were appointed to the Board whereupon I was appointed Chairman of the Company.
I take this opportunity to thank all Group staff for their hard work over the last year.
The continuing co-operation and support of the government authorities in Tunisia is acknowledged and is greatly appreciated.
Richard Linnell
Chairman
16 October 2009
OPERATIONS REPORT
EXPLORATION PERMITS
Through its wholly owned subsidiary, High Marsh Holdings ("HMH"), the Group has 10 exploration permits ("EPs") covering base metals (lead and zinc) and industrial mineral deposits (barite and fluorite) along the highly prospective Mejerda zone in northern Tunisia. It holds a 100 per cent interest in the Djebel Fej Lahdoum, Djebba, Djebel Goraa, Djebel Lorbeus, Djebel Hamman Zriba - Djebel Guebli, Djebel Kohl, Sidi et Taia and Djebel Mecella EPs. Wholly owned subsidiaries have the right to a 90 per cent earn-in for the Fej Lahdoum EP (covering the Dar N'Hal Nord and Dar N'Hal Sud deposits) and a 90 per cent interest in the Bou Jabeur EP.
WORK PROGRAMME AND RESULTS
The main emphasis of work during the year has been on completing the "Bou Jabeur - Gite Est" scoping study, limited drilling at Fej Lahdoum and on doing the requisite work required to enable renewal of several permits including the Zaghouan fluorite EPs, details of which are included in the review set out below.
BOU JABEUR (GITE EST MINE)
As reported in February 2008, the Company, through a wholly owned subsidiary, had exercised its earn-in of a 90 per cent interest in the Bou Jabeur Exploration Permit and the transfer of 90 per cent of the EP to the Company was completed. The Office National des Mines ("O.N.M.") of Tunisia holds 10 per cent. The EP, formerly known as the Bou Jabeur mine concession, covers a significant area of mineralisation including the Gite Est lead-zinc-fluorite-barite mine ("Bou Jabeur - Gite Est").
The Company accelerated its delineation and evaluation drilling at Bou Jabeur - Gite Est. The focus of the programme was to increase the grade and tonnage of the lead-zinc-fluorite-barite resource by drilling laterally and at depth to identify the stratigraphic and structural controls of mineralisation.
The exploration programme was advanced to such an extent that a scoping study on Bou Jabeur - Gite Est was commissioned of Scott Wilson Ltd. ("Scott Wilson") with the metallurgical test work being conducted by SGS Lakefield Research Europe ("SGS"). Aurum Exploration Services ("Aurum") was retained to provide additional, independent geological and technical services to the Company.
The scoping study reported that the Bou Jabeur - Gite Est deposit has an inferred mineral resource of 4.76Mt (using a 4% cut-off grade for Pb/Zn combined) grading at 5.67% combined Pb/Zn with 39.6% barite ("BaSO4"), 7.69% fluorite ("CaF2") and 7.3g/t silver ("Ag").
The structural controls on mineralisation were not defined by the cut-off date for the completion of the scoping study. The Company believes that the additional work completed by Aurum after the scoping study cut-off date provides it with an improved understanding on the controls of mineralisation at Gite Est. The geological model requires testing through a further exploration drilling programme. If proven, Aurum and the Company believe that there is potential for a substantial increase in the resources at Bou Jabeur - Gite Est as there is a large amount of untested ground within Gite Est and also to the West of the permit.
The processing of the four economic minerals (sphalerite, galena, barite and fluorite), through standard laboratory flotation testing can be conducted through typical processing using regular infrastructure as demonstrated by SGS. Recoveries for Zn and Pb are 92% and 85% respectively. The industrial minerals (barites and fluorspar) could be an interesting by-product because of the internal market for these raw materials.
At this stage, Scott Wilson has not identified any significant issues in terms of environmental or social impacts resulting from future mining activities.
The "Base Case" assumed that new surface and mining infrastructure will be required for future mining with sub-level stoping considered the most appropriate mining method. It assumed the construction of a new stand alone plant at Bou Jabeur - Gite Est with a mine life of 11 years at the modelled production rate of 1,500t/d. As noted above, the Company believes that a further exploration drilling programme could prove a substantial increase in the resources contained in Bou Jabeur - Gite Est itself, and in the Bou Jabeur EP as well which, if proved, could support a mine at a production level in excess of 1,500t/d.
The results of the scoping study together with a sensitivity analysis based on differing prices of Pb and Zn at a production rate of 1,500t/day with other prices and factors remaining constant are tabled below.
| Mineral Prices (US $/t) | Head Grade (%, and for Ag, g/t) at 15% dilution | Pre-Tax Total Cash Flow (US $'million) | Pre-Tax Net Present Value at 8% discount rate (US $'million) | Attributable NPV per Maghreb Share (pence per share) * | |
| Base Case | 12.43 | (18.1) | (12.1) | ||
| Zn | 1,200 | 3.06 | |||
| Pb | 1,400 | 1.87 | |||
| Ag | 10 | 6.35 | |||
| CAF2 - (f.o.b.) | 300 | 6.69 | |||
| BaSO4 -Mud Grade (f.o.b.) | 100 | 34.44 | |||
| BaSO4 -Chemical Grade (f.o.b.) | 150 | 34.44 | |||
| Base plus 10% | 31.8 | (6.2) | (4.1) | ||
| Zn | 1,320 | ||||
| Pb | 1,540 | ||||
| Base plus 20% | 49.6 | 4.7 | 3.2 | ||
| Zn | 1,440 | ||||
| Pb | 1,680 | ||||
| Base plus 30% | 67.3 | 15.5 | 10.4 | ||
| Zn | 1,560 | ||||
| Pb | 1,820 | ||||
| Base plus 40% | 85.0 | 26.4 | 17.6 | ||
| Zn | 1,680 | ||||
| Pb | 1,960 | ||||
| Base plus 50% | 102.8 | 37.2 | 24.8 | ||
| Zn | 1,800 | ||||
| Pb | 2,100 | ||||
\* This does not form part of the scoping study and has been calculated by the Company using 91,033,981 ordinary shares in issue at an exchange rate of £/$ 1.485 on an interest of 90% in the project's net present value.
In considering the implications of this table, it should be borne in mind that the results assume production rates of 1,500t/d. We anticipate the overall resource increasing once additional drilling work has been completed to verify the remaining resources within the historical mine workings. These are believed to amount to approximately 500,000 tonnes. In addition, the Company believes that with additional drilling, reserves could be identified that could increase these production rates and substantially improve the economic viability of the project.
Notwithstanding production rates of 1,500t/d, the project is economically viable with maintainable Zn and Pb prices some 20% higher than the prices used in the base case.
The scoping study and work done by Aurum and our in-house team confirmed that the Bou Jabeur - Gite Est and the Bou Jabeur EP is an advanced stage exploration project with further exploration necessary to prove it to a viable mine.
Given current market circumstances, the Company's strategy is actively to seek a mining partner to progress the project, particularly to fund the required additional drilling and exploration programme for both this project as well as the Company's other lead and zinc portfolio assets.
Bou Jabeur Drilling Programme:
During the period five drill holes (MBJ13, MBJ15, MBJ34, MBJ35 and MBJ36) were completed totalling 1,839 metres. MBJ13 and MBJ15 were drilled in the West part of the permit. We identified strong mineralisation in both drill holes. In MBJ15 one metre of 33.36% of zinc was reported. This represents the down dip continuity of a mineralised structure discovered by ONM during the drilling work completed in 1996.
These two holes are located about 2.5 km west of Gite Est; this implies that the full extent of the Bou Jabeur EP is not completely known and justifies the continuity of the drilling work.
Selected core assays' results are as follows:
| Drill hole | From (m) | To (m) | Int (m) | Pb (%) | Zn (%) | Combined (Zn+Pb%) |
| MBJ13 | 237,40 | 245,00 | 7,60 | 9,16 | 0,02 | 9,18 |
| Including | 240,20 | 241,50 | 1,30 | 18,15 | 0,01 | 18,16 |
| MBJ15 | 184,70 | 199,30 | 14,60 | 0,90 | 6,35 | 7,25 |
| Including | 190,40 | 192,50 | 2,10 | 0,12 | 12,25 | 12,37 |
| Including | 195,50 | 196,50 | 1,00 | 0,59 | 33,36 | 33,95 |
|
| 201,20 | 206,40 | 5,20 | 0,60 | 5,11 | 5,71 |
| Including | 201,20 | 203,40 | 2,20 | 0,90 | 8,09 | 8,99 |
|
| 269,60 | 272,90 | 3,30 | 0,48 | 2,08 | 2,56 |
|
| 274,00 | 276,10 | 2,10 | 4,61 | 4,35 | 8,96 |
| MBJ29 | 433,00 | 438,20 | 5,20 | 3,47 | 4,98 | 8,45 |
|
| 470,20 | 473,80 | 3,60 | 5,45 | 1,54 | 6,99 |
| MBJ31 | 132,60 | 134,80 | 2,20 | 1,63 | 9,85 | 11,48 |
| MBJ36 | 48,60 | 53,80 | 5,20 | 6,22 | 5,18 | 11,40 |
|
| 56,90 | 58,80 | 1,90 | 4,95 | 5,05 | 10,00 |
|
| 60,80 | 65,10 | 4,30 | 3,94 | 2,51 | 6,45 |
Fej Lahdoum - Dar N'Hal Nord
The Group has achieved the qualifying expenditure set out in the earn-in agreement dated January 2007 for what was the former Fej Lahdoum mining concession, which covers the past-producing area at Dar N'Hal Nord. Maghreb has submitted its application for its 90 per cent interest through its wholly-owned subsidiary, North African Mining and Minerals Limited, has been notified that this has been agreed and is currently awaiting its formal gazetting.
Drilling re-commenced at Fej Lahdoum in October 2008. Three drill holes (MFL35, MFL36 and MFL37) were completed totaling 766 metres along the Western edge of the known Dar N'Hal Nord deposit to search for the down dip extension to the known orebody.
The renewal of this EP has been approved by the Tunisian Mining Council and is in the process of being gazetted.
Djebel Fej Lahdoum
Two drill holes, MFL33 and MFL34, totaling approximately 756 metres targeted a possible western extension of the known Dar N'Hal Nord deposit. MFL34 was well mineralised and proved the down dip extension of Dar N'Al Nord to the North West. This result is very important and has positive implications to the potential of the EP's resources. The orebody is open to the North West and could confirm the model for Dar N'al Nord deposit.
Principal assay results are as follow:
| Drill hole | From (m) | To (m) | Int (m) | Pb (%) | Zn (%) | Combined (Zn+Pb%) |
| MFL31 | 296,60 | 300,10 | 3,50 | 0,77 | 9,59 | 10,36 |
| Including | 296,60 | 298,10 | 1,50 | 1,66 | 19,87 | 21,53 |
|
| 300,10 | 303,10 | 3,00 | 1,20 | 6,51 | 7,71 |
|
| 330,20 | 332,60 | 2,40 | 1,60 | 4,36 | 5,96 |
| MFL32 | 344,70 | 349,50 | 4,80 | 10,34 | 0,76 | 11,10 |
| Including | 346,50 | 347,50 | 1,00 | 17,06 | 0,87 | 17,93 |
| Including | 348,50 | 349,50 | 1,00 | 28,17 | 1,04 | 29,21 |
| MFL34 | 260,80 | 264,80 | 4,00 | 6,86 | 0,42 | 7,28 |
| Including | 262,80 | 263,80 | 1,00 | 14,47 | 0,27 | 14,74 |
|
| 268,80 | 277,80 | 9,00 | 3,87 | 0,30 | 4,17 |
|
| 277,80 | 279,80 | 2,00 | 4,02 | 1,09 | 5,11 |
|
| 284,50 | 288,10 | 3,60 | 4,98 | 0,84 | 5,82 |
| Including | 286,85 | 288,10 | 1,25 | 7,61 | 0,86 | 8,47 |
|
| 307,00 | 310,10 | 3,10 | 7,23 | 0,12 | 7,35 |
| Including | 308,00 | 309,00 | 1,00 | 17,60 | 0,24 | 17,84 |
| MFL35 | 179,50 | 183,10 | 3,60 | 2,52 | 1,40 | 3,92 |
|
| 197,20 | 199,20 | 2,00 | 4,10 | 3,37 | 7,47 |
The Fluorspar Permits
The Group has completed its evaluation of Djebel Hamman Zriba - Djebel Guebli, Djebel Kohl, Sidi Taia and Djebel Mecella EPs sufficient to ensure renewal of the permits for 3 years. The work requirements to renew the permits were completed by mid-June and the Company is evaluating the results of this phase of the programme. To date, the Group awaits the lab results core assays.
Seven verification drill holes (652m) were drilled at Djebel Kohl to check the known orebody.
Nine boreholes (674m) were drilled at Mecella. We await many of the assay results.
Principal assay results are as follows:
| Drill hole | From (m) | To (m) | Int (m) | Pb (%) | Zn (%) | Combined (Zn+Pb%) |
| MC1 | 24,30 | 26,4 | 2,1 | 14,06 | 6,92 | 20,98 |
|
| 27,40 | 27,9 | 0,5 | 14,3 | 31,16 | 45,46 |
| MK1 | 40,10 | 44,5 | 4,4 | 0,66 | 2,97 | 3,63 |
| MK3 | 79,20 | 85,2 | 6 | 0,04 | 6,7 | 6,74 |
|
| 87 | 88,4 | 1,40 | 0,03 | 4,65 | 4,68 |
|
| 99,10 | 100,3 | 1,20 | 0,01 | 3,33 | 3,34 |
| MK4 | 17.50 | 18.30 | 0,80 | 27,73 | 2,64 | 30,37 |
| MK5 | 0,00 | 2,10 | 2,10 | 1,83 | 4,49 | 6,32 |
| MK6 | 25,30 | 31,30 | 6 | 3.52 | 0.08 | 3,60 |
| MK7 | 1,50 | 2,00 | 0,50 | 0,30 | 6,90 | 7,20 |
|
| 6,40 | 13,40 | 7,00 | 1,14 | 6,87 | 8,01 |
For Fluorite the first assay results are as follows:
| Drill hole | From (m) | To (m) | Int (m) | CaF2 (%) |
| MC1 | 24.3 | 26.40 | 2.10 | 50.18 |
| MK2 | 52,6 | 60,90 | 8,30 | 15,10 |
| Including | 56,1 | 59,50 | 3,40 | 21,24 |
| MK3 | 80,2 | 83,20 | 3 | 28,39 |
| MK5 | 0.00 | 2,10 | 2,10 | 23,49 |
|
| 9,70 | 10,70 | 1 | 22,64 |
| MK7 | 1,50 | 3 | 1,50 | 15,19 |
|
| 9 | 13,40 | 4,40 | 15,31 |
In conclusion, there is a substantial amount of geological work required to assess these permits but these results are encouraging, with the high grades of lead and zinc being interesting. The challenge is to identify the continuity of the grades in order to have an economic resource.
OUTLOOK
As noted in the Chairman's Report, the Company's approach will be to focus more on its fluorspar assets, where it will be pursuing other opportunities both corporate and organic in this area to increase its exposure to the fluorspar sector with the support of your Company's major shareholder.
Based on the results of the Bou Jabeur - Gite Est scoping study, the Company will endeavour to find an industry partner to assist in advancing this highly prospective project, possibly in conjunction with the other Pb/Zn projects that the Company has in its portfolio.
Given the current economic circumstances, the Company's focus is to conserve its resources as much as possible, especially as it has met all the requirements in the forthcoming financial year to maintain its portfolio intact.
Maghreb has a strong, focused EP portfolio in Tunisia. Its strong pipeline of projects, especially if one is successful in introducing sector partners to resume mining operations and/or monetise the value of its underlying EP's, give some degree of confidence that Maghreb could benefit from the anticipated shortfall in supply and consequent increase in metal prices, particularly zinc, forecast by sector analysts to occur between 2010 and 2012.
FINANCIAL REVIEW
Use of Funds
The Group's resources have been used in the pursuit of the Group's exploration activities in Tunisia as summarised below:
| 2009 | 2008 | |
| £'000 | £'000 | |
| Fixed assets purchased | 2 | 55 |
| Exploration expenditure | 747 | 1,218 |
| Tunisia | 747 | 1,253 |
| Algeria - discontinued operations | - | (35) |
| Administration expenditure | 704 | 636 |
| Total | 1,453 | 1,909 |
CONSOLIDATED INCOME STATEMENT
For the year ended 30 June 2009
| 2009 | 2008 | |
| £'000 | £'000 | |
| Continuing Operations | ||
| Revenue | - | - |
| Exploration expenses | (747) | (1,253) |
| Gross loss | (747) | (1,253) |
| Administrative expenses | (704) | (636) |
| Operating loss | (1,451) | (1,889) |
| Investment income | 14 | 107 |
| Income tax expense | - | - |
| Loss for the year on continuing operations Discontinued operations Profit loss for the year from discontinued operations | (1,437) - | (1,782) 35 |
| Total (loss) for the year | (1,437) | (1,747) |
| Earnings per share | ||
| Basic and diluted loss per share on continuing operations after tax (pence) Basic and diluted profit (loss) per share from discontinued operations after tax (pence) | (1.58) - | (1.96) 0.04 |
| Total basic and diluted loss per share after tax (pence) | (1.58) | (1.92) |
CONSOLIDATED AND COMPANY BALANCE SHEET
As at 30 June 2009
| Group | Company | |||
| 2009 | 2008 | 2009 | 2008 | |
| £'000 | £'000 | £'000 | £'000 | |
| Non-current assets | ||||
| Intangible assets Property, plant and equipment | 82 84 | 82 137 | - 6 | - 13 |
| Investments | - | - | 84 | 84 |
| 166 | 219 | 90 | 97 | |
| Current assets | ||||
| Trade and other receivables | 26 | 36 | 100 | 178 |
| Cash and cash equivalents | 237 | 1,219 | 237 | 1,203 |
| Current liabilities | 263 | 1,255 | 337 | 1,381 |
| Convertible Loan Note | (500) | - | (500) | - |
| Trade and other payables Provisions | (42) - | (159) (10) | (33) - | (82) - |
| (542) | (169) | (533) | (82) | |
| Net current (liabilities)/assets | (279) | 1,086 | (196) | 1,299 |
| Net (liabilities)/assets | (113) | 1,305 | (106) | 1,396 |
| Equity | ||||
| Share capital | 546 | 546 | 546 | 546 |
| Share premium account | 6,474 | 6,474 | 6,474 | 6,474 |
| Share option reserve | 229 | 210 | 229 | 210 |
| Retained loss | (7,362) | (5,925) | (7,355) | (5,834) |
| Total equity | (113) | 1,305 | (106) | 1,396 |
CONSOLIDATED CASH FLOW STATEMENT
For the year ended 30 June 2009
| Group | Company | |||
| 2009 | 2008 | 2009 | 2008 | |
| £'000 | £'000 | £'000 | £'000 | |
| Cash flows from operating activities | ||||
| Operating loss before interest and tax | (1,451) | (1,854) | (1,535) | (1,864) |
| Add : Depreciation charges for the year | 55 | 74 | 7 | 11 |
| Add : Share option reserve charge | 19 | 43 | 19 | 43 |
| Operating loss before working capital change | (1,377) | (1,737) | (1,509) | (1,810) |
| Decrease in trade and other receivables | 10 | 1 | 78 | 4 |
| Increase (Decrease) in trade and other payables | (117) | 9 | (49) | 42 |
| (Decrease) in provisions | (10) | - | - | - |
| Net cash flow from operating activities | (1,494) | (1,727) | (1,480) | (1,764) |
| Cash flows from investing activities | ||||
| Purchases of plant and equipment | (2) | (55) | - | (3) |
| Interest income received | 14 | 107 | 14 | 107 |
| Net cash from investing activities | 12 | 52 | 14 | 104 |
| Cash flows from financing activities | ||||
| Proceeds on issue of share capital | - | 242 | - | 242 |
| Decrease in receivables with respect to issue of share capital | - | 700 | - | 700 |
| Proceeds from convertible loan note | 500 | - | 500 | - |
| Net cash from financing activities | 500 | 942 | 500 | 942 |
| Net decrease in cash and cash equivalents | (982) | (733) | (966) | (718) |
| Cash and cash equivalents at the beginning of the year | 1,219 | 1,952 | 1,203 | 1,921 |
| Cash and cash equivalents at the end of the year | 237 | 1,219 | 237 | 1,203 |
Notes to the accounts
1. General information
Maghreb Minerals Plc is a public limited company and was incorporated in England and Wales on 7 June 2004. The Company was admitted to the Alternative Investment Market of the London Stock Exchange on 23 December 2004. The principal activities of the Company and its subsidiaries (the Group) are described in the Chairman's Statement.
2. International Financial Reporting Standards
The Group follows the Standards and Interpretations issued by the International Accounting Standards Board ("IASB") and the International Financial Reporting Interpretations Committee of the IASB and endorsed by the European Union that are relevant to its operations. At the date of authorisation of these financial statements, the Group is aware of the following International Financial Reporting Standards ("IFRSs") which were in issue but have not been applied in these financial statements as they are not mandatorily effective:
IAS 39 (Revised) Financial Instruments: Recognition and Measurement
IFRS 7 (Revised) Financial Instruments: Disclosures
IFRS 8: Operating Segments
IFRS 2 (Revised) Share based payments
IAS 1 (Revised) Presentation of financial statements
IAS 32 (Revised) Financial Instruments: Presentation
The Directors do not anticipate that the adoption of these statements and interpretations will have a material impact on the Group's primary financial statements. However, future application of these standards is likely to significantly increase the disclosures required in the financial statements. The effect of revision to IAS 27 will depend on the extent of relevant future transactions.
IFRS 6 Exploration for and Evaluation of Mineral Resources permits an entity on adopting IFRS to change its accounting policies for exploration and evaluation expenditures if the change makes the financial statements more relevant to the economic decision making needs of the users. Equally, IFRS 6 permits an entity to continue to use the accounting policies applied immediately before adopting the IFRS if this is considered more relevant. The Directors believe it was and is more relevant to continue with the accounting policies then prevailing and apply United Kingdom generally accepted accounting practices for exploration and evaluation expenditures.
3. Significant accounting policies
The financial statements have been prepared in accordance with IFRS as adopted for use in the European Union. The financial statements have been prepared on the historic cost basis.
The consolidated financial statements incorporate the financial statements of the Company and entities controlled by the Company (its subsidiaries). Control is achieved where the Company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.
The results of subsidiaries acquired during the year are included in the consolidated Income Statement from the effective date of acquisition.
Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by other members of the Group.
All intra-group transactions, balances, income and expenses are eliminated on consolidation.
Revenue
Other than interest income, the Group has not generated any revenue in the year ended 30 June 2009.
4. Earnings per ordinary share (basic and diluted)
The calculation of the basic loss per share attributable to the ordinary equity holders of the parent has been calculated on the net loss after tax of £1,437,000 (2008 - £1,747,000), using the weighted average number of ordinary shares of 91,033,981 (2008 - 91,033,981).
Share options in issue and the convertible note at the year end decrease the loss per share for the year, and as such are deemed anti-dilutive. Therefore the diluted loss per share is the same as the basic loss per share for both 2009 and 2008.
The total number of share options outstanding at the year end which could potentially become dilutive in the future is 9,100,000 (2008 - 6,100,000). If the convertible loan note were to be converted entirely into shares then an additional 22,222,222 shares would be issue.
| 2009 | 2008 | |
| Pence | Pence | |
| Loss from continuing operations for the purposes of basic and diluted loss per share after tax | (1.58) | (1.96) |
| Profit from discontinued operations for purposes of basic and diluted loss per share after tax | - | 0.04 |
| Total basic and diluted loss per share after tax | (1.58) | (1.92) |
The Annual Report will be posted to shareholders in due course and will also be available on the Company's website. Copies will also be available from Maghreb Minerals Plc's head office: Blackwell House, Guildhall Yard, London EC2V 5AE