Last checked at 30 Jun 2011 16:29
For immediate release: 30 June 2011
Pathfinder Minerals Plc
("Pathfinder Minerals" or the "Company")
Preliminary Results for the Year Ended 31 December 2010
Chairman's Statement
The final day of 2010 marked a transformational moment for Pathfinder Minerals, as we announced the proposed acquisition of IM Minerals Limited ("IM Minerals"), and with it a 100% interest in two licences to mine heavy minerals sands on the Indian Ocean Coast of Mozambique. The Company further announced a small fundraising of £525,000. Both the acquisition and fundraising were completed post year-end and shares in the newly enlarged Pathfinder Minerals were admitted to AIM, essentially marking the beginning of a new company.
Since admission, significant efforts have been made to progress the development of this world class asset, including the completion of a Scoping Study, carried out by URS Scott Wilson, to develop our Moebase and Naburi mineral sands deposits. The Scoping Study estimated gross revenues from production of $246,493,000 per annum based on highly conservative commodity pricing from a proposed annual production of 1.3 million tonnes per annum of ilmenite (93.4%), rutile (1.74%) and zircon (4.78%). Furthermore it placed a net present value on the Company's project of $529 million.
Earlier this month we received a Letter of Intent, from the Ministry of Mineral Resource, National Directorate of Mines of Mozambique, to combine our two licences thereby forming a single Mining Concession licence, enabling the Company to move forward with certainty of tenure.
The Company believes that global supply of ilmenite, rutile and zircon will be in a significant structural deficit by 2013 with only a limited number of known new sources of significant supply. We are undertaking a detailed feasibility study with a view to developing a mine for commercial extraction.
Following the successful acquisition of IM Minerals earlier this year I was pleased to be appointed as chairman of the board. I have been closely involved with the identification, and early-stage funding, of the Company's asset and am excited to be contributing to the progression of its development. I was honoured to welcome our local partner and significant shareholder, Major-General Jacinto Veloso, to the board as a non executive director earlier this month. He is one of the most respected individuals in Mozambique and we could not wish for a better local partner.
Financial results
As described above, the period of the twelve months ended 31 December 2010 relate to a period before the acquisition of IM Minerals and the start of, essentially, a new business. As such the Company had no revenues to report in 2010 and a loss before tax of £1,064,000. The majority of the loss related to the one-off costs of the reverse takeover of IM Minerals, with the remainder reflecting ordinary working capital costs.
Outlook
I have been involved in the origination and development of natural resource opportunities for over twenty-five years and can say, with confidence, that Pathfinder Minerals' asset represents one of the most compelling opportunities I have seen. The project economics appear attractive, the heavy mineral content is good, the market for heavy minerals is becoming increasingly favourable, the geographic location of the asset makes for efficient export and our local partner is highly influential. There is much feasibility and engineering work to be done to move towards the construction phase of the mine and the Company will require further funding within the next twelve months to progress the project, however I believe we are assembling the best possible team to move us forward and will leave no stone unturned in the development of a highly efficient operation.
John McKeon
Chairman
30 June 2011
Statement of Comprehensive Income for the Year Ended 31 December 2010
31.12.10 | 31.12.09 | ||
£'000 | £'000 | ||
CONTINUING OPERATIONS
| |||
Revenue | - | - | |
Administrative expenses | (1,057) | (384) | |
OPERATING LOSS | (1,057) | (384) | |
Finance costs | (7) | (4) | |
Finance income | - | 1 | |
LOSS BEFORE INCOME TAX | (1,064) | (387) | |
Income tax | - | - | |
LOSS FOR THE YEAR | (1,064) | (387) | |
OTHER COMPREHENSIVE INCOME | - | - | |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR | (1,064) | (387) | |
Loss per share expressed in pence per share: | |||
Basic | (2.76) | (4.84) | |
Diluted | (2.76) | (4.84) |
Statement of Financial Position 31 December 2010
31.12.10 | 31.12.09 | ||
£'000 | £'000 | ||
ASSETS | 200 | 200 | |
NON-CURRENT ASSETS | |||
Investments | |||
CURRENT ASSETS | |||
Trade and other receivables | - | 30 | |
Cash and cash equivalents | 22 | 157 | |
22 | 187 | ||
TOTAL ASSETS | 222 | 387 | |
EQUITY SHAREHOLDERS' EQUITY | |||
Called up share capital | 8,412 | 7,997 | |
Share premium | 2,171 | 1,970 | |
Other reserves | 17 | 348 | |
Retained earnings | (11,337) | (10,273) | |
NET (LIABILITIES)/ASSETS | (737) | 42 | |
LIABILITIES | |||
NON-CURRENT LIABILITIES | |||
Financial liabilities - borrowings | |||
Interest bearing loans and borrowings | - | 168 | |
CURRENT LIABILITIES | |||
Trade and other payables | 959 | 177 | |
TOTAL LIABILITIES | 959 | 345 | |
TOTAL EQUITY AND LIABILITIES | 222 | 387 |
The financial statements were approved by the Board of Directors on 30 June 2011
Statement of Cash Flows for the Year Ended 31 December 2010
31.12.10 | 31.12.09 | ||
£'000 | £'000 | ||
Cash flows from operating activities | |||
Cash generated from operations | (245) | 64 | |
Interest paid | (7) | (4) | |
Net cash from operating activities | (252) | 60 | |
Cash flows from investing activities | |||
Purchase of fixed asset investments | - | (200) | |
Interest received | - | 1 | |
Net cash from investing activities | - | (199) | |
Cash flows from financing activities | |||
Repayment from borrowings | - | (209) | |
Share issue | 117 | - | |
Proceeds from convertible loans | - | 499 | |
Net cash from financing activities | 117 | 290 | |
(Decrease)/Increase in cash and cash equivalents | (135) | 151 | |
Cash and cash equivalents at beginning of year | 157 | 6 | |
Cash and cash equivalents at end of year | 22 | 157 |
The Company will send copies of its Annual Report and Accounts, together with a notice of its Annual General Meeting ("AGM"), to its shareholders. These documents will be available on the Company's website at www.pathfinderminerals.com. The AGM will be held at the offices of Daniel Stewart & Company, Becket House, 36 Old Jewry, London EC2R 8DD at 11am on Friday 16 September 2011.
Enquiries:
Pathfinder Minerals Plc
Nick Trew, Chief Executive
Tel. +44 (0)20 7399 4371
Daniel Stewart & Company Plc
Oliver Rigby or James Thomas
Tel: +44 (0)20 7776 6550
M: Communications
Ben Simons or Maria Souvorov
Tel: +44 (0)20 7920 2340 /2327