24 Dec 2008 10:05
Regency Mines plc
("Regency" or the "Company")
Final Results announcement for the year ended 30 June 2008
Dated: 24 December 2008
Chairman's statement
Dear Shareholders
I am pleased to present to shareholders your Company's annual report for the financial year to 30 June 2008. The Company is exposed to the nickel market both through its Mambare lateritic nickel and cobalt project in Papua New Guinea ("PNG"), through its sulphide nickel prospects in the Lake Johnstone greenstone belt in Western Australia, and latterly through its holding of shares in Alba Mineral Resources plc ("Alba"). The nickel price saw a sharp decline during the year under review, and since, in one of the most severe changes in fortune in the mineral sector. One reason was the reaction of the Chinese market to high nickel prices in 2007, when direct shipping of low grade lateritic ores from the south East Asia region to produce nickel pig iron undercut nickel metal demand in China. Although shipping rates rose in the latter part of 2007 to a level which made this direct shipping business uneconomic except for those with fixed shipping costs, the impact of financial events on the world's economies then began to affect price expectations and the nickel price has continued to decline as steel production has been cut.
The LME cash nickel price per tonne began July 2006 at around $22,000, and climbed steadily to a peak of over $55,000 in May 2007. By the end of June that year there had already been a fall to around $37,000, and the Company's financial year to 30 June 2008 began with prices at that level. After trading most of the financial year in the range $34,000 to $25,000, the price broke down again in May 2008, ending the period at under $22,000. Since the end of the period it has traded down to the current level of around, and sometimes below, $10,000 per tonne, a level at which many nickel producers are unprofitable.
As reported last year, the Group was also affected by one project-specific development. Typhoon Guba in Oro Province in Papua New Guinea in November 2007 damaged infrastructure in our area, so that even in a better pricing environment our prospects of early direct shipping of ore would have been reduced.
The Group continued its exploration programme at Mambare, since at this stage of development what is being done is primarily resource definition work. The object is to obtain a clearer picture of the profile, geology, and metallurgy of the deposit and provide clear evidence, which exploration by previous workers had not, of continuous bodies of mineralisation, in both the upper limonitic and lower saprolitic layers, so that these may be accorded resource status. The effect of this should be to put the deposit 'on the map' of the world's major potential nickel deposits, which previously it has not been. Even in a poor market for nickel metal, the added value from this exercise can be considerable. The state of the market would be fatal were Mambare a project finishing feasibility and seeking funding to carry it into production; that it is a project looking years ahead to satisfy long-term projected demand in the major regional economies means that the programme carried out in the year under review and since has value even in current conditions.
On behalf of the management of the Company I would like to thank shareholders for their patience and support in trying times.
Summary
The Company reports the following developments in the financial year to 30 June 2008:
Share price decline from 6.875p to 2.375p;
£1,278,750 before expenses raised from share placings at an average price of 2.9 pence;
Active programme of exploration at Mambare nickel-cobalt project in Papua New Guinea;
Subscription to new issues at associate Red Rock Resources plc ("Red Rock");
Investment in Alba Mineral Resources plc.
Financial review
The Group made a post tax loss of £495,377 (2007: loss of £618,924) during the financial year; no dividends have been paid or proposed. The loss includes a write-down of £134,109 in the Company's investments, notably in Alba, as a result of applying the 'mark to market' rules. Most costs of Mambare exploration were capitalised since it is the view of management that this exploration substantially increases project value.
As a result principally of placings of new shares in the Company during the financial year, the Company's total equity capital rose from £1,582,512 to £2,459,165 during the financial year.
Exploration review
Early in the period, the Group began an auger drill programme at 100m intervals on lines 22400, 22800 and 23200N across the previously explored ridge west of the Arumu River at Mambare, Papua New Guinea. This area lies in the south west of the license close to roads. 43 holes were drilled, for 278.7m of drilling, but the results were generally disappointing in terms of penetration of the limonite mineralization, and the rigs were put on standby pending the expected arrival of a diamond drill. Tropical cyclone Guba intervened in November 2007.
26 wacker holes were drilled for a total of 124m from October 2007, on lines at 21600, 22200 and 22800N. The wacker rig penetrated better than the auger core rig, but was also stopped by boulders and harder material. Most of these holes encountered mineralization.
In the early part of 2008 the local infrastructure was being repaired under a state of emergency in Oro Province; however drilling resumed following the end of the financial year. The unsatisfactory 2007 results led to the decision to engage a drilling company from the Philippines for the 2008 drilling season and exercise close operating supervision.
The first half of calendar 2008, the second half of the Group's financial year, was used productively. A 50.2 kilometre ground-penetrating radar programme began in April 2008 along twelve east-west lines in the south-western area of the license that had been drilled in 2007, and concluded in May. Given the anticipated depth of penetration requirements an advanced radar system known as UltraGPR available for application testing since early 2008 was utilised.
The Company had in 2007 entered into a Research Services Agreement with the General Research Institute for Nonferrous Metals ("GRINM") of Beijing, China providing for a programme of hydrometallurgical test work on ore from Mambare. Follow up work was intended to be conducted on site leading to process flow recommendations and an economic analysis. The beginning of this work was delayed due to the Typhoon, but in April 2008 a 200 kg limonite sample was shipped to GRINM for metallurgical test work. This work has been slow, as during the Olympics chemical deliveries within the Beijing area were prohibited, but completion and report are imminent.
Over 40 drill holes have been completed, with samples sent for assay in Jakarta every week or fortnight, and first results are expected shortly.
Corporate review
During the financial year the Company undertook the following placings:
In September 2007 the placing of 16,714,286 shares at 3.5 pence per share to raise £585,000 before expenses;
In January 2008 the placing of 10,000,000 shares at 3 pence per share to raise £300,000 before expenses.
In April 2008 the placing of 17,500,000 shares at 2.25 pence per share to raise £393,750 before expenses.
Since the financial year end the Company has carried out one further fund raising in order to finance the drill programme. In September 2008 £322,500 before expenses was raised by an issue of 25,800,000 shares at 1.25 pence per share. Further, in July 2008 Regency announced the exercise of 5,500,000 options at 2 pence per share, raising £110,000 for the Company. Options over an additional 2,500,000 shares lapsed.
By the end of the financial year the Company acquired a 11,434,047 ordinary shares in fellow AIM-listed explorer Alba Mineral Resources plc ("Alba") representing 13% of the issued share capital of the company, and 1,750,000 warrants becoming the largest shareholder in Alba. The attraction of Alba was primarily its nickel projects in Scotland and Sweden, as well as its 50% holding in the private company Mauritania Investments Ltd.
During the year the Company's associate Red Rock raised £1,350,000 by placing 70,000,000 ordinary shares at an average price of 1.9 pence per share. Regency subscribed for 30,100,000 of these shares at a cost of £351,500, an average price of 1.17 pence per share. The Directors believe that the shareholding in Red Rock is a key asset of the group and given Red Rock's prospects the Company wanted to limit the dilution of its shareholding. Over the year Regency's holding in Red Rock fell from 45.8% to 37.8% following the fund raisings.
After the end of the financial year Red Rock announced that in early 2009 Jupiter Mines Ltd ("Jupiter"), an Australian listed company in which Red Rock holds with its associates an 18.07% shareholding, intended to seek shareholder approval for a proposal by Red Rock and Pallinghurst Resources Australia Limited (with whom Red Rock is acting in concert) whereby they would sell certain assets to Jupiter in exchange for a controlling interest in Jupiter. Should this transaction proceed, Red Rock will realize significant profits and will be a significant shareholder in a business run by the former top management of BHP Billiton.
As reported in last year's annual report, the Company announced in November 2007 that it had signed a Memorandum with an Asian based group that was expected to lead to an investment in the Company and the Mambare project. Unfortunately this matter did not progress.
Other Post-balance sheet developments
Exploration
In July 2008 the Company received the results of the ground-penetrating radar ("GPR") programme carried out by Jan C. Francké, who has surveyed over 60 nickel laterite sites with GPR technology over the last 17 years. A total of 51.2 km of UltraGPR data were acquired over eleven profiles, ranging in length from 2.2 km to over 10 km, and with the exception of a cover of recent volcanic ash, the deposit proved typical of other laterite deposits in eastern Indonesia and Papua New Guinea, with a weathering sequence consisting of limonite, saprolite, and rock saprolite overlying a parent bedrock.
A typical weathering profile in the survey area includes a near-surface earthy limonite layer of several metres thickness, grading downwards into a thicker saprolite zone. The final weathering layer above the bedrock of closefitting boulders and corestones resembles jointed rock near the interface with the fresh peridotite below.
The depth of the weathering sequence as measured by the UltraGPR programme was highly variable, ranging up to depths of 35m to bedrock. The thinnest region of remnant laterite remains on the steepest slopes, where the laterisation process has been outpaced by erosion. However at Mambare the ash accumulations seem to have acted as a protective cap, inhibiting significant erosion on all but the steepest slopes. Even on moderate slopes, the UltraGPR has detected significant accumulations of laterite.
With lateral variations in the lateritic sequence of more than ±10 m vertically over a few metres, an attempt to map trends between profiles spaced 400 m apart is statistically impossible. Nevertheless, a very crude estimate of volumes could be made by the consultants based on a simple gridding of the UltraGPR interpretations. These were a total of over 211,000,000 m³ of limonitic and ash material and 151,000,000 m³ of saprolite material over an area of approximately 22 km².
The survey covered less than 20% of the 20km by 7km Mambare plateau. The dataset suggested that the deposit continues to the north and possibly west.
The Company regards these results as significant and promising.
A 7 rig rotary core drill programme in the same general area and along the same prepared lines began in mid-October 2008, under a contract with specialist drilling contractors JCP Geo-Ex Services Inc of Cebu, the Philippines. This company has experience drilling laterite deposits. This is the first time an explorer has undertaken a systematic test of the limonite and saprolite sequences in this area.
The programme was successfully concluded with 4,000 m drilled in 335 holes, and the core is being logged, prepared, and sent to laboratory for testing. Results are expected from early 2009. The Company hopes to develop a model of the resource in this part of the license from the drill results and GPR before further drilling is commissioned. This will be a milestone in the project history, and will give valuable information for the next stages whilst conserving the Company's cash.
A geophysical survey of the Company's Lake Tay nickel project in Western Australia was carried out and indicates that six of the nine targeted conductors in the area have not been tested by drilling and that several of them should be considered for follow-up electromagnetic work. The Lake Johnstone greenstone belt remains a highly prospective, and undeveloped, area for sulphide nickel.
Corporate
A small further investment of £25,000 was made in Alba in August 2008 to enable that company to meet its obligations. Regency now holds 13,934,047 ordinary shares representing 15% of the issued share capital of Alba. Alba has produced good exploration results from Mauritania, but the financial environment is difficult for small companies.
In September 2008, Regency announced it had purchased the outstanding 25% of the shares in its locally incorporated subsidiary, Canopus No. 83 Ltd, the owner of the Mambare project, from a local vendor for a consideration of Kina 350,000 (approximately £75,000) payable in two tranches, and the cancellation of invoices for £115,365.45 addressed by the Company to the vendor. The first tranche of 150,000 Kina has been paid and a further sum of 200,000 Kina will be payable on completion and approval of transfer documentation.
The Company is in discussions with a potential technology partner that is interested in investing in the Mambare project. This is an opportunity that is on the face of it attractive and will be pursued. There can be no guarantee of a successful outcome.
Personnel
I would like to thank all our staff for their considerable contribution during the year. Regency has a hardworking management and staff and their loyalty is not the least of our assets.
The Future
Regency's management will continue to work on ways to manifest and monetise the value of some of the Company's assets. This is a prerequisite for progress, and we are confident that the next months will see developments that will put the Company in a strong position not merely to weather the downturn but to make advances which will position it for the upturn,
Andrew Bell
Chairman
24 December 2008
International financial reporting standards
With effect from 1 July 2006, the Company made the transition to preparing financial statements in accordance with the International Financial Reporting Standards ("IFRS"), as adopted by the European Union. Accordingly, these financial statements reflect the policies and interpretations adopted by the Board in preparing its first complete set of IFRS financial statements for the year ending 30 June 2008.
The transition to reporting under IFRS required the restatement of the Company's balance sheet at 30 June 2007. Reconciliation of the restated balance sheet along with information relating to the reported changes under IFRS are detailed in Note 25 to the financial statements.
Results and dividends
The Group's results are set out in the group income statement. The following Income Statement, Group and Company Balance Sheets and Cash Flow Statements are extracted from the financial statements for the year ended 30 June 2008 as audited by Chapman Davis LLP and signed on 24 December 2008.
The Group incurred a loss after minority interests of £495,377 (2007: loss £618,924).
The Directors do not recommend the payment of a dividend.
Group income statement
for the year ended 30 June 2008
| Year ended 30 June 2008 £ | Year ended 30 June 2007 £ | |||
| Revenue | ||||
| Management services | 34,971 | 27,229 | ||
| Gross profit | 34,971 | 27,229 | ||
| Exploration expenses | (117,661) | (276,278) | ||
| Administrative expenses | (366,668) | (465,000) | ||
| Currency gain | 25,271 | 6,776 | ||
| Operating (loss) | (424,087) | (707,273) | ||
| Share of operating profits/(losses) in associates | 32,840 | (5,050) | ||
| Profit on sale of available for sale investment | - | 1,046 | ||
| (Loss)/surplus on revaluation of financial assets | (134,108) | 1,604 | ||
| Interest receivable | 16,819 | 2,034 | ||
| Interest payable | (369) | (3,787) | ||
| (Loss) on ordinary activities before taxation | (508,905) | (711,426) | ||
| Tax on profit/(loss) on ordinary activities | 6,250 | - | ||
| (Loss) on ordinary activities after taxation | (502,655) | (711,426) | ||
| Minority interests | 7,278 | 92,502 | ||
| Retained (loss) for the period attributable to Shareholders of the Company | (495,377) | (618,924) | ||
| Loss per share - basic | (0.26) pence | (0.43) pence |
Statement of recognised gains and losses
for the year ended 30 June 2008
| Year ended 30 June 2008 £ | Year ended 30 June 2007 £ | |||
| Unrealised profit on deemed disposal of Red Rock Resources plc and subsidiary | - | 252,462 | ||
| Profit recognised directly to equity | - | 252,462 | ||
| Loss for the financial period | (495,377) | (618,924) | ||
| Total recognised losses for the year | (495,377) | (366,462) |
Group balance sheet
as at 30 June 2008
| 30 June 2008 £ | 30 June 2007 £ | ||||
| Non-current assets Tangible assets Investments in associates Goodwill | 12,708 479,290 45,000 | 15,958 244,950 45,000 | |||
| 536,998 | 305,908 | ||||
| Current assets Cash and cash equivalents Trade and other receivables Available for sale financial assets Exploration properties | 180,161 295,339 372,836 945,512 | 188,771 201,480 213,014 558,400 | |||
| Total current assets | 1,793,848 | 1,161,665 | |||
| Total assets | 2,330,846 | 1,467,573 | |||
| Current liabilities | |||||
| Trade and other payables | (77,222) | (36,888) | |||
| Total liabilities | (77,222) | (36,888) | |||
| Net assets | 2,253,624 | 1,430,685 | |||
| Equity Called-up share capital Share premium account Share based payment reserve Other reserves Retained earnings | 219,941 3,002,695 112,992 251,830 (1,316,212) | 170,226 1,726,816 112,992 247,185 (820,835) | |||
| Equity Shareholders' interests | 2,271,246 | 1,436,384 | |||
| Minority Interests | (17,622) | (5,699) | |||
| Total equity | 2,253,624 | 1,430,685 |
Company balance sheet
as at 30 June 2008
| 30 June 2008 £ | 30 June 2007 £ | ||||
| Non-current assets Tangible fixed assets Investments in subsidiaries Investments in associates | 7,098 117,000 479,290 | 14,196 117,000 244,950 | |||
| 603,388 | 376,146 | ||||
| Current assets Cash and cash equivalents Trade and other receivables Available for sale financial assets Exploration properties | 161,129 845,252 372,836 534,541 | 130,225 376,443 213,014 523,502 | |||
| Total current assets | 1,913,758 | 1,243,184 | |||
| Total assets | 2,517,146 | 1,619,330 | |||
| Current liabilities Trade and other payables | (57,981) | (36,818) | |||
| Total liabilities | (57,981) | (36,818) | |||
| Net assets | 2,459,165 | 1,582,512 | |||
| Equity Called-up share capital Share premium account Share based payment reserve Retained earnings | 219,941 3,002,695 112,992 (876,463) | 170,226 1,726,816 112,992 (427,522) | |||
| Total equity | 2,459,165 | 1,582,512 |
Group cash flow statement
for the year ended 30 June 2008
| Group Year to 30 June 2008 | Group Year to 30 June 2007 | |||
| £ | £ | |||
| Cash flows from operating activities | ||||
| Operating loss Decrease in receivables Increase/(decrease) in payables Depreciation Purchase of available for sale investments Sale of available for sale investments Exploration property costs Impairment of exploration properties Share based payments Taxation refund /(paid) | (424,087) (93,859) 40,334 7,983 (293,931) - (387,111) - - 6,250 | (707,273) (96,058) (37,803) 7,130 (189,332) 30,557 (62,819) 190,814 112,992 (6,029) | ||
| Cash (outflow) generated from operations | (1,144,421) | (757,821) | ||
| Cash flows from investing activities Interest received Interest paid Purchase of associate company investments Purchase of fixed assets | 16,819 (369) (201,500) (4,733) | 2,034 (3,787) - (23,089) | ||
| Net cash flows used in investing activities | (189,783) | (24,842) | ||
| Acquisitions and disposals Cash disposed of on deconsolidation of subsidiary | - | (46,214) | ||
| Net cash (outflow) from acquisitions and disposals | - | (46,214) | ||
| Cash inflows from financing activities Proceeds from issue of shares Transaction costs of issue of shares Subsidiary company share issue for cash | 1,388,750 (63,156) - | 714,697 (27,500) 100,375 | ||
| Net cash flows from financing activities | 1,325,594 | 787,572 | ||
| Net (decrease) in cash and cash equivalents Cash and cash equivalents at the beginning of period | (8,610) 188,771 | (41,305) 230,076 | ||
| Cash and cash equivalents at end of period | 180,161 | 188,771 |
Company cash flow statement
For the year ended 30 June 2008
| Group Year to 30 June 2008 | Group Year to 30 June 2007 | |||
| £ | £ | |||
| Cash flows from operating activities | ||||
| Operating loss (Increase)/decrease in receivables Increase/(decrease) in payables Depreciation Purchase of available for sale investments Exploration property costs Impairment of exploration properties Share based payments Taxation refund | (370,336) (468,809) 21,164 7,098 (293,931) (11,039) - - 6,250 | (447,645) (187,420) (10,141) 7,097 (198,361) (62,819) 152,161 112,992 - | ||
| Cash (outflow) generated from operations | (1,109,603) | (634,136) | ||
| Cash flows from investing activities Interest received Interest paid Purchase of associate company investments Purchase of fixed assets | 16,561 (148) (201,500) - | 1,626 (3,538) - (21,294) | ||
| Net cash flows used in investing activities | (185,087) | (23,206) | ||
| Cash inflows from financing activities Proceeds from issue of shares Transaction costs of issue of shares | 1,388,750 (63,156) | 714,698 (27,500) | ||
| Net cash flows from financing activities | 1,325,594 | 687,198 | ||
| Net increase in cash and cash equivalents Cash and cash equivalents at the beginning of period | 30,904 130,225 | 29,856 100,369 | ||
| Cash and cash equivalents at end of period | 161,129 | 130,225 |
Earnings/(loss) per share
| Loss per share - Group | 2008 £ | 2007 £ | |
| The basic loss per share is derived by dividing the loss for the period attributable to ordinary shareholders by the weighted average number of shares in issue. | |||
| Loss for the period | (495,377) | (618,924) | |
| Weighted average number of Ordinary shares of £0.001 in issue | 192,132,895 | 143,680,386 | |
| Loss per share - basic | (0.26) pence | (0.43) pence | |
| As inclusion of the potential Ordinary shares would result in a decrease in the loss per share, they are considered to be anti-dilutive. As such, a diluted earnings per share is not included. | |||
Statement of changes in equity
| The movements on reserves during the period were as follows: | |||||||
| Share capital | Share premium reserve | Share based payment reserve | Consolidation reserve | Retained earnings | Minority interests | Total | |
| Group | £ | £ | £ | £ | £ | £ | £ |
| As at 30 June 2006 | 129,897 | 1,079,947 | - | 550,156 | (203,711) | 448,950 | 2,005,239 |
| Issue of shares | 40,329 | 674,369 | - | - | - | - | 714,698 |
| Share issue and fundraising costs | (27,500) | - | - | - | - | (27,500) | |
| Loss for the year | - | - | - | (618,924) | (92,502) | (711,426) | |
| Share based payments | - | - | 112,992 | - | - | - | 112,992 |
| Deconsolidation adjustment | - | - | - | (302,971) | 1,800 | - | (301,171) |
| Minority interests | - | - | - | - | - | (362,147) | (362,147) |
| As at 30 June 2007 | 170,226 | 1,726,816 | 112,992 | 247,185 | (820,835) | (5,699) | 1,430,685 |
| Issue of shares | 49,715 | 1,339,036 | - | - | - | - | 1,388,751 |
| Share issue and fundraising costs | - | (63,157) | - | - | - | - | (63,157) |
| Loss for the year | - | - | - | - | (495,377) | (7.278) | (502,655) |
| Minority interests | - | - | - | 4,645 | - | (4,645) | - |
| As at 30 June 2008 | 219,941 | 3,002,695 | 112,992 | 251,830 | (1,316,212) | (17,622) | 2,253,624 |
| Company | Share capital | Share premium reserve | Share based payment reserve | Retained earnings | Total | ||
| £ | £ | £ | £ | £ | |||
| As at 1 July 2006 | 129,897 | 1,079,947 | - | 25,481 | 1,235,325 | ||
| Issue of shares | 40,329 | 674,369 | - | - | 714,698 | ||
| Share issue and fundraising costs | - | (27,500) | - | - | (27,500) | ||
| Loss for the year | - | - | - | (453,003) | (453,003) | ||
| Share based payments | - | - | 112,992 | - | 112,992 | ||
| As at 30 June 2007 | 170,226 | 1,726,816 | 112,992 | (427,522) | 1,582,512 | ||
| Issue of shares | 49,715 | 1,339,036 | - | - | 1,388,751 | ||
| Share issue and fundraising costs | - | (63,157) | - | - | (63,157) | ||
| Loss for the year | - | - | - | (448,942) | (448,942) | ||
| As at 30 June 2008 | 219,941 | 3,002,695 | 112,992 | (876,463) | 2,459,165 |
Restatement of reported figures
Consolidated financial information as at 1 July 2006
| Balance sheet | As originally reported under UK GAAP | Restate for IFRS | IFRS |
| £ | £ | £ | |
| Non-current assets Intangible assets Goodwill | 1,657,142 45,000 | (1,657,142) - | - 45,000 |
| Total non-current assets | 1,702,142 | (1,657,142) | 45,000 |
| Current assets Cash and cash equivalents Trade and other receivables Trade investments Exploration properties | 230,076 105,422 48,540 - | - - - 1,657,142 | 230,076 105,422 48,540 1,657,142 |
| Total current assets | 384,038 | 1,657,142 | 2,041,180 |
| Total assets | 2,086,180 | - | 2,086,180 |
| Current liabilities Trade and other payables | 80,941 | - | 80,941 |
| Total liabilities | 80,941 | - | 80,941 |
| Net assets | 2,005,239 | - | 2,005,239 |
| Capital and reserves Share capital Share premium account Retained losses Other reserves | 129,897 1,079,947 (203,711) 550,156 | - - - - | 129,897 1,079,947 (203,711) 550,156 |
| Shareholders' funds Minority interests | 1,556,289 448,950 | - - | 1,556,289 448,950 |
| Total equity | 2,005,239 | - | 2,005,239 |
Consolidated financial information for the year ended 30 June 2007
| As originally reported under UK GAAP | Restate for IFRS | IFRS | |
| £ | £ | £ | |
| Income statement Turnover Cost of sales | 57,786 (29,511) | (30,557) 29,511 | 27,229 - |
| Gross profit Exploration expenses Administrative expenses Currency loss | 28,275 (289,384) (451,864) (204) | (1,046) 13,106 (13,136) 6,980 | 27,229 (276,278) (465,000)6,776 |
| Operating loss Share of operating loss in associate Profit on sale of trade investment Surplus on revaluation of financial assets Interest receivable Interest payable | (713,177) (27,335) - - 2,034 (3,787) | 5,904 22,285 1,046 1,604 - - | (707,273) (5,050) 1,046 1,604 2,034 (3,787) |
| Loss on ordinary activities for the period | (742,265) | 30,839 | (711,426) |
| Loss on ordinary activities after taxation | (742,265) | 30,839 | (711,426) |
| Minority interests | 94,301 | (1,799) | 92,502 |
| Retained loss attributable to Shareholders | (647,964) | 29,040 | (618,924) |
| As originally reported under UK GAAP | Restate for IFRS | IFRS | |
| £ | £ | £ | |
| Balance sheet Non-current assets Tangible assets Investments in associates Goodwill | 15,958 - 45,000 | - 244,950 - | 15,958 244,950 45,000 |
| Total non-current assets | 60,958 | 244,950 | 305,908 |
| Current assets Cash and cash equivalents Trade and other receivables Trading asset investments Exploration properties | 188,771 191,421 420,753 631,443 | - 10,059 (207,739) (73,043) | 188,771 201,480 213,014 558,400 |
| Total current assets | 1,432,388 | (270,723) | 1,161,665 |
| Total assets | 1,493.346 | (25,773) | 1,467,573 |
| Current liabilities Trade and other payables | 61,198 | (24,310) | 36,888 |
| Total liabilities | 61,198 | (24,310) | 36,888 |
| Net assets | 1,432,148 | (1,463) | !,430,685 |
| Capital and reserves Share capital Share premium account Share option reserve Other reserves Retained losses | 170,226 1,726,816 112,992 247,330 (851,676) | - - - (145) 30,841 | 170,226 1,726,816 112,992 247,185 (820,835) |
| Shareholders' funds Minority interests | 1,405,688 26,460 | 36,771 (32,159) | 1,436,384 (5,699) |
| Total equity | 1,432,148 | (1,463) | 1,430,685 |
Restatement of reported figures - notes:
During 2007, exploration properties previously reported as intangible fixed assets, were reclassified and reported as current assets. This correction has now been applied as at 30 June 2006 and 31 December 2006.
The financial information set out above does not constitute statutory accounts as defined in section 240 of the Companies Act 1985.
The balance sheets, the income statement, the cash flow statements, the Groups statement of recognised income and expense, the statement of changes in equity, the transition to IFRS notes for the financial year ended 30 June 2008 and the restated financial information have been extracted from the Company's statutory financial statements upon which the auditor's opinion is unqualified and does not include any statement under Section 237 of the Companies Act 1985.
Copies of the report and financial statements will be posted to Shareholders no later than 31st December 2008 and will be available for a period of one month thereafter from the Company at 115 Eastbourne Mews, Paddington London W2 6LQ
Alternatively, the report may be downloaded from the Company's website, www.regency-mines.com
Enquiries:
| Andrew Bell | 0207 402 4580 or 07766 474849 | Regency Mines plc | Chairman |
| John Simpson / Ben Jeynes | 020 7489 4500 | Blomfield Corporate Finance Ltd | Nominated Adviser |
| Nick Emerson | 01483 413500 | Simple Investments Ltd | Broker |
| Ron Marshman / John Greenhalgh | 020 7011 9411 | Lothbury Financial Limited | Public Relations |
Updates on the Company's activities are regularly posted on its website, www.regency-mines.com.