RGM.L Regulatory News (RGM)

30 Mar 2005 11:26

Regency Mines PLC30 March 2005 REGENCY MINES PLC UNAUDITED INTERIM RESULTS FOR THE PERIOD TO 31ST DECEMBER 2004 Chairman's Statement It is with great pleasure that I present the first interim statement in respectof your Company. The period to 31 December was the period in which the preparatory work for thefund raising and the Company's admission to AIM was carried out. This culminatedin the issue of our Prospectus on 31st December 2004 to raise up to £500,000 byway of an Offer for Subscription. Review - corporate The fundraising was successfully completed having been oversubscribed, andRegency was admitted to trading on AIM on 22 February 2005. As we expand and our affairs grow in complication our administrative andfinancial controls will need to keep up, and to ensure adequate resource in thisarea John Watkins joined the Board as a non-executive director on 30 March 2005. John, aged 61, is a chartered accountant and a former partner of Ernst & Youngand Neville Russell. His directorships include Starvest plc where he is financedirector and Lisungwe plc a Malawi mineral exploration company where he ischairman. John's appointment strengthens the financial controls of our Companyand I would like to welcome him to the Board. Review - market Metal markets have been strong, and the impact of Chinese demand has beenidentified as the single most important factor. Indian steel production per headis a fraction of that of China, and the likely growth of Indian demand, in theview of the Directors is, one of the major trends that can be extrapolated fromcurrent data. Chinese growth remains strong, but the economy is highlycontrolled and contains imbalances that may either continue at tolerable levelsfor some time or may halt growth with the consequent risk of economic andpolitical instability. The relatively free Indian economy and the likely growth of Indian demand can,in the view of the Directors, sustain a number of years of balanced growth andis likely to require high commodity inputs. The demand for commodities, in the view of the Directors, is likely to remainstrong and although the impact of marginal supply/demand changes on pricescannot be predicted with accuracy, the amplitude of down-cycles over the nextfew years may be restricted. Review - exploration We are encouraged by continuing exploration activity by other companies on theborders of our Lake Johnston tenements and with Image Resources' fourth quarterstatement reporting 2 metre intercepts from RC drilling at Lake Percy at 0.6%and 0.7% Nickel. Image Resource has laid a track across our E63/879 tenement tobring in a rig for drilling at their E63/547 tenement. We are consideringscheduling some early drilling in the area to make use of this track. In thegeneral Forrestania/Lake Johnston area, Western Areas' recent discovery hole FFD163 at Flying Fox T5 which encountered a 34 metre intersection grading4.4%Nickel is encouraging for the prospectivity of these belts. Shareholders shouldbe aware however that results in nearby tenements may have no significantimplications for the Regency tenements. Following completion of our acquisition of the Bundarra copper mining field inQueensland, we are assembling data and developing an exploration plan. Review - business development Following Admission, we acquired the Mt Ida tenement in the Eastern Goldfieldsof Western Australia, where we have a gold prospect and evidence of good gradebanded ironstone mineralisation from previous exploration. We have also recentlypegged the Mt Hope tenement near Menzies, which is prospective for a similarstyle of iron mineralisation. In Tasmania, we have pegged two large prospectiveiron ore properties on trend from and surrounding the old Savage River 300million ton magnetite iron ore mine, which is owned by Stemcor Holdings. Thecomparator for a project based on this deposit style could be Grange Resources'Southdown project in Western Australia, although in Tasmania the necessaryinfrastructure already exists. Regency has acquired these iron ore projects with a view to expanding its basemetals portfolio and currently intends to fund the development of theseproperties without recourse to the Regency shareholders. General I would like to record my appreciation and thanks to our new investors whosupported the Offer and to our professional advisers for their support duringthe fund raising and the Admission to AIM. I am confident that your Company is well positioned to grow in the comingmonths. The Directors are constantly reviewing opportunities that are beingpresented, and are focusing on the search for ventures that might produce earlycash flow. Andrew Bell30 March 2005 Independent Review Report to Regency Mines Plc Introduction We have been instructed by the Company to review the financial information setout on pages 3 to 5 and we have read the other information contained in theinterim report and considered whether it contains any apparent misstatements ormaterial inconsistencies with the financial information. This report, including the conclusion, has been prepared for and only for theCompany for the purpose of their interim report and for no other purpose. We donot, therefore, in producing this report, accept or assume responsibility forany other purpose or to any other person to whom this report is shown or intowhose hands it may come save where expressly agreed by our prior consent inwriting. Directors' responsibilities The interim report, including the financial information contained therein, isthe responsibility of, and has been approved by the Directors. Review work performed We conducted our review in accordance with guidance contained in Bulletin 1999/4issued by the Auditing Practices Board as if that Bulletin applied. A reviewconsists principally of making enquiries of the Directors and applyinganalytical procedures to the financial information and underlying financial dataand based thereon, assessing whether the accounting policies and presentationhave been consistently applied unless otherwise disclosed. A review excludesaudit procedures such as tests of controls and verification of assets,liabilities and transactions. It is substantially less in scope than an auditperformed in accordance with Auditing Standards and therefore provides a lowerlevel of assurance than an audit. Accordingly we do not express an auditopinion on the financial information. Review conclusion On the basis of our review we are not aware of any material modifications thatshould be made to the financial information as presented for the period ended31st December 2004. CHAPMAN DAVIS LLPChartered Accountants2 Chapel CourtLondon SE1 1HH Consolidated Profit and Loss Account (Unaudited)For the period from 10th September 2004 to 31st December 2004 Notes £ TURNOVER - COST OF SALES - ______GROSS PROFIT - Administrative expenses (12,664) ______OPERATING LOSS (12,664) Taxation 2 - ______LOSS ON ORDINARY ACTIVITIES AFTER TAXATION (12,664) =====Loss per share : 4 Basic (34.3)p Diluted (0.6)p ===== Consolidated Balance Sheet (Unaudited)At 31st December 2004 Notes £ FIXED ASSETSExploration expenditure 48,667 ______ CURRENT ASSETSDebtors 12,750Cash at bank and in hand 42,760 ______ 55,510 ______CREDITORS: Amounts falling due within one year (35,000) ______NET CURRENT ASSETS 20,510 ______NET ASSETS 69,177 ===== CAPITAL AND RESERVESCalled up share capital 72,000Profit and loss account (12,664)Other reserves 9,841 ______SHAREHOLDERS' FUNDS 6 69,177 ===== Consolidated Cash Flow Statement (Unaudited)For the period ended 31st December 2004 Notes £ CASH INFLOW FROM OPERATING ACTIVITIES 20,774 Capital expenditure and financial investment (8,014) ______CASH INFLOW BEFORE FINANCING 12,760 Financing 30,000 ______INCREASE IN CASH IN THE PERIOD 5 42,760 ===== Notes to the Interim ReportFor the period ending 31st December 2004 1. PRESENTATION OF INTERIM RESULTS This interim report was approved by the Directors on 30th March 2005. Theinterim results have not been audited, but were the subject of an independentreview carried out by the Company's auditors, Chapman Davis LLP. Their reviewconfirmed that the figures were prepared using applicable accounting policiesand practices consistent with those to be adopted in the annual report. Thefinancial information contained in this interim report does not constitutestatutory accounts as defined by Section 240 of the Companies Act 1985. Allshareholders will receive a copy of this interim report, which can also beobtained from the Company's registered office at 55 Gower Street, London WC1E6HQ. 2. TAXATION No taxation has been provided due to losses in the period. 3. DIVIDENDS The Directors do not recommend the payment of a dividend. 4. LOSS PER SHARE Weighted Average Loss Number of Per share £ Shares penceBasic Loss for the period (12,664) 36,960 (34.3) Effect of dilutive securities: Options - 2,053,097 33.7 ______ ________ _____Diluted Loss for the period (12,664) 2,090,057 (0.6) ====== ======= ==== On 2nd February 2005 the Company raised £500,000, before expenses, by theallotment of 25,000,000 Ordinary Shares of 0.1p each. 5. RECONCILIATION OF NET CASHFLOW TO MOVEMENT IN NET FUNDS £ Increase in cash in the period 42,760Net funds at beginning of period - ______Net funds at end of period 42,760 ===== 6. RECONCILIATION OF MOVEMENT IN SHAREHOLDERS' FUNDS Share Profit Other capital and loss reserves account Total £ £ £ £ At 10th September 2004 - - -Loss for the period - (12,664) (12,664)Issue of shares 72,000 - 72,000Consolidation adjustment 9,841 9,841 ______ ______ ______ ______At 31st December 2004 72,000 (12,664) 9,841 69,177 ===== ===== ===== ===== Enquiries: Andrew Bell 07766 474849 Regency Mines plc ChairmanRon Marshman / John Greenhalgh 020 7628 5518 City of London PR Limited Public RelationsJohn Simpson 020 7512 0191 ARM Corporate Finance Ltd Nominated Adviser This information is provided by RNS The company news service from the London Stock Exchange