31 Mar 2010 07:00
|
|
|
Regency Mines plc
Half-yearly report - six months ended 31 December 2009
31 March 2010
Regency Mines plc ("Regency" or the "Company") the mineral exploration and development company focused on exploring areas of copper and nickel potential in Western Australia, Queensland, and Papua New Guinea, announces its unaudited half-yearly results for the six months ended 31 December 2009.
Chairman's statement
Dear Shareholders,
The interim group pretax profit of £388,164 (2008 interim loss: £1,408,136) included £634,001 share of profits in associates, reflecting associate profits from our substantial shareholding in Red Rock Resources plc ("Red Rock"). Red Rock's results in the comparable period last year had been affected by a deficit on revaluation of available for sale investments as a result of poor conditions in financial markets and the mining sector.
Comprehensive income for the period showed a profit of £649,379 and included a surplus on revaluation of available for sale financial assets and a share in the comprehensive income of red Rock.
Shareholders' equity increased by 252.8% year on year to £4,063,284 (2008 £1,151,862) and by 48.4% since 30 June 2009. This reflected an increase in the value of Investments in Associates, but also rises in the carrying value of available for sale financial assets and exploration properties. The year on year rise in the value of exploration properties was affected by a write back at 2009 financial year end of exploration expenditure provisionally written off at the interim stage last year. At that time nickel prices were hitting their lows and pessimism about the world economy was at an extreme, and it seemed appropriate to assume that there might have been no value in exploration carried out. The recovery in nickel prices and in stainless steel demand by the financial year end, which has continued since, meant that at the time of audit no provision was deemed necessary.
Assessment of the Mambare nickel project has continued, and we are working closely with our partners at Direct Nickel Pty Ltd on structuring the next steps. We await the imminent release of new geophysical data by the Papua New Guinea Government, following which we will embark on the next stage of exploration.
An initial drill programme at our Western Australian tenements in the Lake Johnstone greenstone belt has begun, and the first phase, involving 2,600m of drilling on two targets, has been completed. This follows an extensive geophysical investigation, and is initially concentrated on priority targets under cover at the intersection of the greenstone belt and the cross-cutting Jerdacuttup fault which forms part of the terrane boundary hosting the major Tropicana gold discovery. The programme targets potential gold and nickel mineralisation, and initial encouraging indications are that the geological boundary has been found and the right type of rocks are present. Regency awaits sampling results.
The Company has acquired a number of promising tenements in Western Australia and is reviewing its extensive portfolio with a view to optimising value by joint venture, disposal, exploration, or otherwise. Regency continuously reviews opportunities, but as it believes in the long term investment fundamentals for nickel, its core commodity, the environment for which is now improving, it expects to retain a focus on this metal. The Company will be kept busy in the coming months by its nickel projects, but not to the exclusion of enterprise and activity on other fronts.
We look to the remaining months of our financial year with considerable confidence. We believe the prospects for Red Rock are exceptional, and expect to have developments of our own to announce.
Andrew Bell
Chairman
31 March 2010
Change of Name of Nominated Adviser
The Company also announces that Blomfield Corporate Finance Limited, the Company's Nominated Adviser has changed its name to Religare Capital Markets (UK) Limited - trading as Religare Capital Markets.
For further information contact:
| Andrew Bell | 0207 402 4580 07766 474849
| Regency Mines plc | Chairman |
| Peter Trevelyan-Clark/Ben Jeynes
| 020 7444 0800 | Religare Capital Markets | Nominated Adviser |
| Nick Emerson | 01483 413500 | Simple Investments Ltd | Broker
|
| Ron Marshman | 020 7011 9411 | Lothbury Financial Ltd | Public Relations |
Updates on the Company's activities are regularly posted on its website www.regency-mines.com.
Income statement
|
| Group 6 months to 31 December 2009 | Group 6 months to 31 December 2008 | Group Year to 30 June 2009 | |
|
| Unaudited £ | Unaudited £ | Audited £ | |
| Revenue Sales of investments Cost of sales Management services
|
- - 19,027 |
131,256 (146,799) 30,733 |
131,256 (146,799) 58,046 | |
| Gross profit
Exploration expenses | 19,027
(5,729) | 15,190
(510,232) | 42,503
(132,691) | |
| Administrative expenses Currency gain/(loss)
| (256,436) 404 | (150,738) (31,227) | (365,556) (48) | |
| Operating loss
| (242,734) | (677,007) | (455,792) | |
| Share of profit/(loss) in associates Deficit on revaluation of financial assets Interest receivable Interest payable
| 634,001 - 622 (3,725) | (628,825) - (107,514) 5,261 (51) | (271,327) - 10,988 (791) | |
| Profit/(loss) on ordinary activities before taxation
| 388,164 | (1,408,136) | (716,922) | |
| Taxation
| - | - | - | |
| Profit/(loss) after taxation
Minority interests | 388,164
- | (1,408,136)
-
| (716,922)
- | |
| Retained profit/(loss) attributable to Shareholders
| 388,164 | (1,408,136) | (716,922) | |
|
|
|
|
|
|
| Earnings/(loss) per share - see note 3 Basic Diluted |
|
0.10 pence 0.10 pence
|
(0.60) pence (0.60) pence
|
(0.27) pence (0.60) pence
|
All operations are considered to be continuing.
Statement of comprehensive income
|
| Group 6 months to 31 December 2009 | Group 6 months to 31 December 2008 | Group Year to 30 June 2009 | |
|
|
| Unaudited £ | Unaudited £ | Audited £
|
| Surplus/(loss) on revaluation of available for sale financial assets Share of other comprehensive income of associates |
| 96,369
180,325 | -
- | (82,963)
342,571 |
| Unrealised currency (loss)/gain |
| (15,479) | - | 113,372 |
| Surplus recognised directly to equity
Profit/(loss) for the financial period |
| 261,215
388,164
| -
(1,408,136) | 372,980
(716,922)
|
| Total comprehensive income for the financial period |
| 649,379 | (1,408,136) | (343,942) |
Statement of financial position
|
|
| Group 31 December 2009 | Group 31 December 2008 | Group 30 June 2009 |
|
|
| Unaudited £ | Unaudited £ | Audited £
|
| Assets |
|
|
|
|
| Non-current assets Tangible assets Investments in associates Goodwill
|
|
13,381 1,619,935 43,507 |
15,932 466 77,715 |
10,396 725,535 45,000 |
| Total non-current assets |
| 1,676,823 | 94,113
| 780,931 |
| Current assets Cash and cash equivalents Trade and other receivables Available for sale financial assets Exploration properties |
|
126,217 211,602 571,596 1,772,508 |
47,488 211,459 143,531 860,514
|
203,559 167,162 219,584 1,593,820 |
| Total current assets
|
| 2,681,923 | 1,262,992 | 2,184,125 |
| Total assets
|
| 4,358,746 | 1,357,105 | 2,965,056 |
|
Equity and liabilities Current liabilities Trade and other payables
|
|
295,462
|
205,243
|
226,155
|
| Total liabilities
|
| 295,462 | 205,243 | 226,155 |
| Equity Called up share capital Share premium account Other reserves Retained losses
|
|
396,129 4,407,261 867,919 (1,608,025) |
245,741 3,283,270 347,199 (2,742,348) |
352,808 3,775,578 606,704 (1,996,189) |
| Total equity
|
| 4,063,284
| 1,151,862
| 2,738,901
|
| Total equity and liabilities
|
| 4,358,746 | 1,357,105 | 2,965,056 |
Statement of cash flows
|
|
| Group 6 months to 31 December 2009 | Group 6 months to 31 December 2008 | Group Year to 30 June 2009 |
|
|
| Unaudited £ | Unaudited £ | Audited £ |
| Cash flows from operating activities |
|
|
|
|
| Operating loss Decrease/(increase) in receivables Increase/(decrease) in payables Impairment of exploration properties Depreciation of fixed assets Cost of available for sale investments disposed of Payments to acquire available for sale investments Exploration property costs Share based payments Currency adjustments
|
| (242,734) (44,440) 69,309 - 1,898 - - (203,647) - 11,280 | (677,007) 83,880 128,021 93,067 4,489 146,800 - (8,069) - (28,059)
| (455,792) 128,177 148,932 51,587 9,470 - - (590,100) 4,756 2,687
|
| Cash outflow generated from operations
|
| (408,334) | (257,328) | (700,283) |
| Cash flows from investing activities Interest received Interest paid Payments to acquire fixed assets Payments to acquire associate company investments Payments to acquire available for sale investments Proceeds from sale of available for sale investments
|
|
622 (3,725) (5,191) (80,075) (255,643) - |
5,261 (51) (4,215) (150,000) - - |
10,988 (791) (5,305) (175,000) (76,510) 146,799 |
| Net cash flows used in investing activities |
| (344,012) | (149,005) | (99,819)
|
|
|
|
|
|
|
| Acquisitions and disposals Purchase of subsidiary
|
|
-
|
(32,715)
|
(82,250) |
| Net cash outflow from acquisitions and disposals |
| - | (32,715) | (82,250) |
|
Cash inflows from financing activities Proceeds from issue of shares Transaction costs of issue of shares
|
|
782,552 (107,548)
|
322,500 (16,125)
|
942,000 (36,250)
|
| Net cash flows from financing activities |
| 675,004 | 306,375 | 905,750
|
| Net (decrease)/increase in cash and cash equivalents
|
| (77,342)
| (132,673)
| 23,398
|
| Cash and cash equivalents at the beginning of period
|
| 203,559 | 180,161 | 180,161 |
| Cash and cash equivalents at end of period
|
| 126,217 | 47,488 | 203,559 |
Consolidated Statement of changes in equity
For the period ended 31 December 2009
|
| Share capital | Share premium
| Retained earnings | Other reserves
| Total equity |
|
| £ | £ | £ | £ | £ |
| At 30 June 2008
| 219,941 | 3,002,695 | (1,279,267) | 310,255 | 2,253,624 |
|
Issue of shares Share issue and fundraising costs Share based payments Consolidation reserve adjustment Total comprehensive income for the financial period
|
132,867
- -
-
- |
809,133
(36,250) -
-
- |
-
- -
-
(716,922) |
-
- 4,756
(81,287)
372,980 |
942,000
(36,250) 4,756
(81,287)
(343,942)
|
| At 30 June 2009
| 352,808 | 3,775,578 | (1,996,189) | 606,704 | 2,738,901 |
|
Issue of shares Share issue and fundraising costs Total comprehensive income for the financial period
|
43,321
-
- |
739,231
(107,548)
- |
-
-
388,164
|
-
-
261,215
|
782,552
(107,548)
649,379 |
| At 31 December 2009 | 396,129 | 4,407,261 | (1,608,025) | 867,919 | 4,063,284
|
Half-yearly report notes
1. Company and Group
As at 30 June 2009 and 31 December 2009, the Company had one or more operating subsidiaries and has therefore prepared full and interim consolidated financial statements respectively.
The Company will report again for the year ending 30 June 2010.
The financial information contained in these interim financial statements does not constitute statutory accounts as defined in section 435 of the Companies Act 2006. The financial information for the year ended 30 June 2009 has been extracted from the statutory accounts for the Group for that year. Statutory accounts for the year ended 30 June 2009, upon which the auditors have given an unqualified audit report and did not contain a statement under Section 498(2) or (3) of the Companies Act 2006, have been filed with the Registrar of Companies.
2. Accounting policies
Accounting policies adopted under IFRS
These interim financial statements have been prepared in accordance with International Financial Reporting Standards as adopted by the European Union ("IFRS").
The consolidated interim financial information has been prepared in accordance with IAS34 'Interim Financial Reporting'. The condensed interim financial information should be read in conjunction with the annual financial statements for the year ended 30 June 2009, which have been prepared in accordance with IFRSs.
3. Earnings per share
|
|
| 6 months to 31 December 2009 | 6 months to 31 December 2008 | Year to 30 June 2009 |
|
|
| Unaudited £ | Unaudited £ | Audited £ |
|
|
|
|
|
|
| These have been calculated on a earnings/(loss) of:
| 388,164 | (1,408,136) | (716,922) | |
| The weighted average number of shares used was:
| 382,375,603 | 234,383,053 | 267,140,662 | |
|
Basic earnings/(loss) per share: |
0.10 pence |
(0.60) pence |
(0.27) pence | |
|
The weighted average number of shares inclusive of outstanding options was:
|
400,375,603 |
234,383,053 |
267,140,662 | |
|
Diluted earnings/(loss) per share: |
0.10 pence |
(0.60) pence |
(0.27) pence | |
4. Segmental information
The Group's primary business segment is mineral exploration. The Group operates within three principal geographical segments, the United Kingdom, Australia and Papua New Guinea (PNG).
The following tables present revenue and loss information and certain asset and liability information by geographical segment.
For the six month period ended 31 December 2009
|
|
| United Kingdom
| Australia | PNG
| Total
|
|
|
| £ | £ | £ | £ |
| Revenue Total segment revenue
|
|
- |
- |
- |
- |
|
Total consolidated revenue
|
|
|
|
|
- _______ |
| Result Segment results
|
|
(214,166) |
(17,513) |
(11,055) |
(242,734) |
|
Loss before tax and finance costs
Interest receivable Interest payable Share of profit of associates
Profit before taxation Taxation expense
Net profit for the period
|
|
|
|
|
(242,734) _______ 622 (3,725) 634,001 _______ 388,164 - _______ 388,164 _______ |
As at 31 December 2009
|
|
| United Kingdom
| Australia | PNG
| Total
|
|
|
| £ | £ | £ | £ |
| Assets and liabilities Segment assets
|
|
3,000,248 |
257,264 |
1,101,234 |
4,358,746 |
|
Total assets
|
|
|
|
|
4,358,746 _______ |
| Segment liabilities
|
|
(240,205) |
(10,645) |
(44,612) |
(295,462) |
|
Total liabilities
|
|
|
|
|
(295,462) _______ |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the year ended 30 June 2009
|
|
| United Kingdom
| Australia | PNG
| Total
|
|
|
| £ | £ | £ | £ |
| Revenue Total segment revenue
|
|
162,188 |
27,114 |
- |
189,302 |
|
Total consolidated revenue
|
|
|
|
|
189,302 _______ |
| Result Segment results
|
|
(677,893) |
(25,139) |
(24,087) |
(727,119) |
|
Loss before tax and finance costs
Interest receivable Interest payable
Loss before taxation and minority interests Taxation expense
Net loss for the year
|
|
|
|
|
(727,119) _______ 10,988 (791) _______ (716,922) - _______ (716,922) _______ |
As at 30 June 2009
|
|
| United Kingdom
| Australia | PNG
| Total
|
|
|
| £ | £ | £ | £ |
| Assets and liabilities Segment assets
|
|
1,284,097 |
611,786 |
1,069,173 |
2,965,056 |
|
Total assets
|
|
|
|
|
2,965,056 _______ |
| Segment liabilities
|
|
(144,822) |
(3,631) |
(77,702) |
(226,155) |
| Total liabilities
|
|
|
|
|
(226,155) _______ |
Copies of the half-yearly report are available free of charge by application in writing to the Company Secretary at the Company's business office, 115 Eastbourne Mews, Paddington, London W2 6LQ, on the Company's website (www.regency-mines.com), or by email to admin@regency-mines.com.