RGM.L Regulatory News (RGM)

31 Mar 2006 11:49

Regency Mines PLC31 March 2006 REGENCY MINES PLC Interim report - six months ended 31 December 2005 Chairman's statement The half year to December saw a continuation of high prices in the hardcommodity markets, but on our smaller stage was punctuated by two events: onejust after the beginning of the period and one just after its end. On 29th July the company listed a subsidiary company, Red Rock Resources PLC(www.rrrplc.com), on the London AIM market. Red Rock listed with a portfolio ofiron ore and manganese assets in Western Australia and Tasmania, some of whichRegency Mines had acquired since listing, and some of which came in at listing.With 141,860,000 shares in issue, the stock price closed its first day oftrading at 2.5 pence, valuing Regency's 71.37 % shareholding at £2.5m. In February 2006, just after the period end, the company was able to dispose ofits holding in Thor Mining PLC, held since before that company's listing on AIMin June 2005, for net proceeds of £204,384, an excess over book value of£160,184, increasing the company's cash reserves to a more comfortablelevel. During the half year an exploration programme was carried out at three areas ofthe company's Bundarra copper-gold property in Queensland which surrounds a 15km by 10 km granodiorite pluton. At Isens, soil sampling was completed on 200mx 80m centres in open terrain. Results were significant peaking at 3.1% copperwith 0.9g/t gold and 10.8g/t silver. Other results included 0.5% copper with0.36g/t gold and 2.5g/t silver. Copper and gold anomalism was outlined overapproximately 1500m of strike and remained open to the west. At surface,mineralisation was up to 30m wide. Drilling of three traverses of angled RCholes is required to test mineralisation at depth. At the second Bundarra area, Flora Range, soil sampling was completed over 4kmof strike on 200m x 80m centres. Copper and gold anomalism was outlined overthe entire 4km of strike and remained open to the southwest. Maximum resultswere 2400ppm copper with 28ppb gold and 2.7g/t silver. Ten sets of historicworkings were located within the Flora Range area, each commonly returning +2%copper from historic rockchip sampling by previous explorers. Only one workinghas been tested by a single RC hole that, significantly, returned 3m at 7.2g/tgold from 36m. A ground geophysical survey (IP) and RC drilling is required totest the peak geochemical response. At the third area, Mt Flora, the immediate area of historic workings has beensubject to much surface exploration in the past and, consequently, soil samplingand mapping was focused on potential northern and southern strike extensions tomineralisation. Sampling returned a peak of 254ppm copper and 7ppb gold.Results confirmed mineralisation continues northwest of the historic workingsfor some 2500m, and also southeast for a further 1800m. However, mineralisationis of a more subtle nature than that encountered at Isens and Flora Range. Thissuggests a large, low-grade disseminated style of mineralisation for Mt Flora.Step out RC or diamond drilling of the Mt Flora mineralisation is required. During August, magnetic and radiometric data from a detailed airborne surveywere processed and imaged. Total count (K, Th, U) radiometric data illustratesthe strong alteration of the Permian sedimentary rocks in contact with themargin of the Bundarra intrusion, and highlights the potential for economicaccumulations of uranium. Subsequent imaging of the airborne uranium datarevealed several discrete anomalies within the project area. These arescheduled for ground follow-up. The results to date of the sampling and mapping program at Bundarra justifymoving to the next stage of exploration. The results in the Isens area meanthat this will be a focus of further exploration effort, including drilling.The Flora Range results will be followed up by further exploration, includingdrilling. Continued mapping and sampling of areas around the edge of theBundarra intrusion will be undertaken to test hitherto unexplored areas. Theobjective remains to identify and delineate high grade copper zones as well aspotential low grade bulk tonnage targets. The company established a new subsidiary, Range Mines Ltd, to hold interests inzinc properties at the Lennard Shelf and near Halls Creek in the East Kimberleyarea, in anticipation of the sharp improvement in zinc prices that took placeduring the period. In October the company's subsidiary Red Rock acquired uranium and iron oreproperties in the Northern Territory of Australia, and subsequently alsoacquired uranium projects in Malawi. As a result of these transactions, thecompany's stake in Red Rock has reduced to 62.63%. On 10th March 2006 the company's shares began trading in Frankfurt and thecompany has also been one of the first AIM companies to start trading on thePLUS Markets trading platform. Although the Thor Mining holding has been sold, the company has been presentedwith other opportunities for participation in new IPOs in exchange for itsadvice, services, or assets, and expects to continue to derive benefit fromadvisory and financing activities. The current Red Rock share price of 2.13p isequivalent to 1.72p per Regency share. The directors look to 2006 with confidence. Andrew Bell Chairman 29 March 2006 Consolidated profit & loss account 6 months to 31 Period 10 Period 10 December 2005 September 2004 September 2004 to 31 December to 2004 30 June 2005 Unaudited Unaudited Audited £,000 £,000 £,000 Turnover - - - Administrative expenses (184) (13) (108) Operating loss on ordinary activities (184) (13) (108) Interest receivable 2 - - Loss on ordinary activities before taxation (182) (13) (108) Tax on profit on ordinary activities - - - Loss on ordinary activities after taxation (182) (13) (108) Minority interests 26 - 2 Retained loss for the period £(156) £(13) £(106) Loss per share - see note 3Basic (0.12) pence (34.3) pence (0.13) penceFully diluted (0.12) pence (0.6) pence (0.13) pence Consolidated balance sheet 31 December 31 December 30 June 2005 2005 2004 Unaudited Unaudited Audited £,000 £,000 £,000 Fixed assets 1,568 49 963 Current assetsDebtors 41 12 28Trading investments - see note 2 44 - 44Cash at bank and in hand 286 43 154 371 55 226 Creditors - amounts falling due within one year (101) (35) (144) Net current assets 270 20 82 Total assets less current liabilities £1,838 £69 £1,045 Capital and reservesCalled up share capital 125 72 125Share premium account 992 - 992Profit and loss account (257) (13) (106)Other reserves 539 10 12 Equity shareholders' funds 1,399 69 1,023 Minority interests 439 0 22 £1,838 £69 £1,045 Consolidated cash flow statement 6 months to 31 Period 10 Period 10 December 2005 September 2004 September 2004 to 31 December to 2004 30 June 2005 Unaudited Unaudited Audited £,000 £,000 £,000 Net cash inflow/(outflow) from operating activities (241) 21 (39) Capital expenditure and investment (605) (8) (910) Cash outflow before financing (846) 13 (949) Financing 978 30 1,103 Increase in cash in the period £132 £43 £154 Reconciliation of movement in shareholders' funds 6 months to 31 Period 10 Period 10 December 2005 September 2004 September 2004 to 31 December to 2004 30 June 2005 Unaudited Unaudited Audited £,000 £,000 £,000 Total recognised losses relating to the period (156) (13) (106)Proceeds of share issues, net of expenses - 72 1,117Other reserves 532 10 12 Increase in shareholders' funds 376 69 1,023 Opening shareholders' funds 1,023 0 0 Closing shareholders' funds £1,399 £69 £1,023 Interim report notes 1. Interim report This interim report was approved by the Directors on 29 March 2006. The information relating to the six month periods to 31 December 2005 and 31December 2004 is unaudited. The information relating to the year ended 30 June 2005 is extracted from theaudited accounts of the Company which have been filed at Companies House and onwhich the auditors issued an unqualified audit report. 2. Basis of accounting The report has been prepared using accounting policies and practices that areconsistent with those adopted in the statutory accounts for the year ended 30June 2005 by the Group and its subsidiary undertakings, although the informationdoes not constitute statutory accounts within the meaning of section 240 of theCompanies Act 1985. These interim financial statements consolidate the financial statements of theCompany and its subsidiaries. The Company and Group will report again for the full year to 30 June 2006. 3. Loss per share 6 months to 31 Period 10 Period 10 December 2005 September 2004 September 2004 to to 31 December 30 June 2005 2004 Unaudited Unaudited Audited £,000 £,000 £,000 These have been calculated on a loss of: (156) (13) (106) The weighted average number of shares used was: 125,110,596 36,960 78,013,246The effect of dilutive securities was: - 2,053,097 3,400,000The weighted average number of shares anddilutive outstanding options used was: 125,110,596 2,090,057 81,413,246 Basic loss per share: (0.12) pence (34.3) pence (0.13) pence Fully diluted loss per share: (0.12) pence (0.6) pence (0.13) pence Copies of this interim report are available free of charge by application inwriting to the Company Secretary at the Company's registered office, 55 GowerStreet, London WC1E 6HQ, or by email to andrew@bellmin.com. Enquiries: Andrew Bell 07766 474849 Regency Mines plc ChairmanRon Marshman / John 020 7628 5518 City of London PR Limited Public RelationsGreenhalgh This information is provided by RNS The company news service from the London Stock Exchange