RGM.L Regulatory News (RGM)

31 Mar 2008 07:01

Regency Mines PLC31 March 2008 Regency Mines plc Half-yearly report - six months ended 31 December 2007 Dated: 31 March 2008 Regency Mines plc ("Regency" or the "Company") the mineral exploration anddevelopment company focused on exploring areas of copper and nickel potential inWestern Australia, Queensland, and Papua New Guinea, announces its unauditedhalf-yearly report for the six months ended 31 December 2007. Chairman's statement Dear Shareholders, Summary The Company reports the following developments during the six months to 31December 2007: • Exploration focus on the Company's lateritic nickel property in Papua New Guinea • £585,000 before expenses raised from a share placing in September 2007 at 3.5p • Impact of Typhoon Guba on operations in Papua New Guinea. Exploration Drilling began in the second half of 2007 at the Company's Mambare lateriticnickel project in Oro Province, Papua New Guinea. Although there is a road fromnearby the project to the provincial port, communications with other provincesare by air or transhipment from Port Moresby, and the terrain within the projectarea is deeply incised tropical forest without road access and dependent ontracks. Therefore, on the advice of its resident geologist, who has severalyears experience in the country, the Company has initially been operating withlighter equipment, including man-portable drill rigs, transportable along tracksby teams of 4 to 10 men. Identifying suitable equipment for cost-effective andefficient use has been a matter of trial and error, exacerbated by the highdemand and short supply of almost all categories of rig. The Company began drilling in a small south-western portion of the Mambarelicence close to the Kokoda-Popondetta road and along the Aruma river valleywhich provides access, with the object of delineating a small resource oflimonite ore suitable for direct shipping. 43 Auger holes were drilled along three prepared east-west lines between Augustand November 2007 for 278.7m of drilling. With bits and equipment for conversionto diamond drilling not arriving on schedule, the drill penetration was affectedby any encounter with boulders or rock fragments. Despite shutting down for aperiod for adjustments, results did not significantly improve. The rig was puton standby in November awaiting the delivery of HQ diamond drilling equipment,when severe floods associated with Typhoon Guba terminated the 2007 programme. A small wacker drill and drill string were after delays delivered in October,and 26 wacker holes for 124m of drilling, including some duplicating the earlierauger results, were drilled over the next month. These holes were drilled onsections 21600N (CAW008-019), 22000N (CAW054-059) and 22800N (CAW060-067). Theeasternmost hole on Section 21600N, CAW019, intersected ore grade material, with3 metres of 0.95% nickel. To the west the holes were collared on alluvial flats.Drilling needs to be continued to the east on the higher prospective country. Within Section 22000N, ore grade mineralisation was intersected in 5 of the 6holes. The un-mineralised hole was collared on the Aruma alluvial flats.Further drilling is required to the east. On Section 22800N, eight wacker holes, CAW060-067, were drilled. Ore gradenickel or cobalt mineralisation was intersected in 6 of these holes. Generallybetter penetration was achieved with the wacker rig than the auger core rig, butit was also stopped by larger boulders and harder saprolite material. The drilling completed in 2007 indicates that the flat country on either side ofthe Aruma River hosts transported volcanic ash and laterite material, possiblyre-worked landslips. The higher ridges to the east and west of the Aruma Riverare mineralised with 1-12 metres of 0.8% to 1.35% nickel and 0.04-0.19% cobalt.The plateau west of the ridge west of the Aruma was considered un-mineralisedfrom the historical data. The current drilling indicates that this area ismineralised with cobalt grades up to 0.19% over 2-6 metre intervals. Cobalt wasnot assayed in the historical data. To fully test the laterite, diamond or tungsten carbide drilling is needed totest the profile of both the limonite and saprolite horizons. The wacker can,at best, only test the limonite material. Exploration in 2008 will focus on delineating a resource in the targeted areasalong the north-south ridges which contain the best mineralisation and cross-cutthe east-west lines along which the 2007 programme was carried out. Drillscapable of penetrating the saprolite will be used to obtain complete profiles inthe current exploration area, the higher plateau areas nearby, and furthereast-west lines to the immediate north. Some holes will be drilled at selectedpoints elsewhere in the Mambare plateau to evidence the scale of themineralisation potential. A valley crossed by the existing drilled lines, wherelimonite material had been eroded away, will be redrilled to test the hypothesisthat in these areas the rock underlying the surface ash may be nickel-bearingsaprolitic rock rather than bedrock. A small purpose-built diamond drill was due for delivery in late 2007, but dueto the destruction of transportation infrastructure by Typhoon Guba, deliveryhas been delayed. Following a management visit to Mambare in early 2008 toassess the bottlenecks and the impact of the typhoon, negotiations have begun tobring in an experienced drill crew from another country in the region withadditional rigs for a 3,000m plus drill contract to outline a JORC resource,with a possible extension to a larger programme. When the diamond drill equipment is delivered for the auger, which is expectedshortly, the auger will be mobilised to extend the 2007 programme alongeast-west lines parallel and to the north of the area covered in 2007. When thesmall purpose built diamond rig is delivered, or the drill contractor arrives onsite, drilling will initially be carried out along the lines drilled last year. Across to the south of the Aruma River, the wacker drill will be mobilised totest a geologically similar extension of the plateau that may contain furthermineralisation. Lines have been cleared and surveyed for the delayed ground penetrating radarprogramme, which is also expected to start imminently. Negotiations are in train for leasing a 20 hectare administration site in Kokodafrom the Government, and a suitable handling area at Oro port has also beenidentified and offered. Impact of the typhoon The localised impact of the typhoon in November on the infrastructure betweenMambare, the provincial capital and the port beyond it was serious. A State ofEmergency was declared in Oro Province and remains in force. All bridges wereeither washed away, on the larger rivers, or had their embanked approacheswashed away, leaving the central span intact on the smaller rivers. Little wasdone before the New Year to restore land transport infrastructure, as theemphasis was on disaster relief, but at the time of our visit in February 2008,the Army had restored bridges or the loggers had created alternative vehicularcrossing points - except in the one case of the Kumusi River, which stillrepresented an obstacle between the provincial capital of Popondetta and Kokoda. This speed of recovery from so exceptional an event was encouraging. Beyond theKumusi, earth-moving plant owned by Higatori Oil Palms, a subsidiary of CargillInc, has helped clear the roads. Cargill Inc is constructing a new oil palmfactory at the estate next to the Company's licence area at Mambare, in additionto its existing plant at Popondetta. Our conclusion from the visit was that, on the assumption that the Kumusi Rivercrossing is restored soon, no further impact from the typhoon beyond the delaysalready encountered is to be expected. Other infrastructure, including cellphonecommunication, looks set to improve over the next six months. Red Rock Resources Plc The Company maintains its substantial interest in the AIM-quoted Red RockResources Plc ("Red Rock"). On 28 January 2008 Red Rock carried out a placementof 18,000,000 new shares at 2p per share, and given the low issue price thecompany, rather than be further diluted, elected to subscribe for 4,000,000 ofthese shares. Consequently the Company now holds 107,250,000 Red Rock shares,representing 39.1% of Red Rock's issued share capital. Other A 'Memorandum of Investment and Co-operation' with an Asia-based investmentgroup was announced in November 2007 which could lead to a substantialinvestment in the Company and the Mambare project. The agreement was subject to contract and receipt of regulatory approvals. TheCompany envisaged that these would be completed relatively quickly, but thetyphoon, delays to work on site in Papua New Guinea, and the need to assesslocal infrastructure and the feasibility of travel by road within the provincebefore arranging any site visit mean that this timetable has been extended.Meanwhile, expressions of interest in co-operation or investment have beenreceived from several other parties. The Company announced in November an investment in 9,375,000 new shares inAIM-quoted Alba Mineral Resources Plc ("Alba"), amounting to 10.65% of Alba'sissued share capital. Following further investment, the Company now holds11,434,047 Alba shares - 13% of Alba's issued share capital, and 1,750,000 Albawarrants. As previously noted, at the original issue price to us Alba was valuedat only £1m. Alba's holdings include important sulphide nickel licences inScotland and Sweden, zinc licenses in Ireland, gold licenses, and a 50%shareholding in Mauritania Ventures Ltd. Alba has made progress on many matterssince our investment, and we see a number of benefits flowing from thisco-operation, besides the benefit of seeing a company in which we are asubstantial shareholder making a strong recovery in its business and beginningto unlock the value of its assets. The price of Alba has held up in what havebeen difficult markets for small exploration companies. Future prospects We expect commodity demand growth from developing economies, notably China andIndia, to continue. Despite the draining of liquidity from the market as aresult of the banking crisis that has been developing since mid-2007, we expectconditions in metal markets to remain stable. This reduction in marketliquidity, combined with a downturn in the nickel price, caused our share priceto suffer in the latter part of 2007. We have undiminished confidence in the merit and potential of our main assets,and the exploration we have planned for the remaining part of the year, with themanagement and reporting structures being put in place to control it, arefocussed on bringing into public view that unrecognised value. International financial reporting standards With effect from 1 July 2007, the Company made the transition to preparingfinancial statements in accordance with the International Financial ReportingStandards ("IFRS") as adopted by the Eurpean Union. Accordingly, these interimstatements reflect the assumptions made by the Board about the standards andinterpretations expected to be effective, and the policies expected to beadopted, when the Company issues its first complete set of IFRS financialstatements for the Group for the year ending 30 June 2008. The unaudited results of our activites during the period ended 31 December 2007show a loss before taxation of £414,720 (2006 as adjusted, a loss of £292,895). Andrew BellChairman31 March 2008 Income statement Group Group Group 6 months to 6 months to Year to 31 December 31 December 30 June 2007 2006 2007 Unaudited Unaudited Unaudited £ £ £Income Management services 19,323 - 27,229 Gross profit 19,323 - 27,229 Exploration expenses (162,311) (204,582) (276,278)Administrative expenses (177,709) (179,857) (465,000)Currency gain/(loss) 4,573 21 701 Operating loss (316,124) (384,418) (713,348) Share of operating loss in associates (111,855) (1,174) (5,050)(Loss)/profit on sale of trading asset investments - 1,046 1,046(Deficit)/surplus on revaluation of trade investments (24,157) 23,363 1,604Interest receivable 9,322 583 2,034Interest payable (148) (300) (3,787) Loss on ordinary activities before taxation (442,962) (360,900) (717,501) Deferred taxation provision 481 (7,009) (481) Loss after taxation (442,481) (367,909) (717,982) Minority interests 27,761 75,014 92,502 Retained loss attributable to Shareholders (414,720) (292,895) (625,480) Loss per share - see note 3Basic (0.23) pence (0.22) pence (0.44) penceShare options were not dilutive during theperiod There are no recognised gains or losses in either period other than the loss forthe period. Balance sheet Group Group Group 31 December 31 December 30 June 2007 2006 2007 Unaudited Unaudited Unaudited £ £ £ Assets Non-current assetsTangible assets 15,487 19,361 15,958Investments in associates 138,145 6,326 244,950Goodwill 45,000 45,000 45,000 Total non-current assets 198,632 70,687 305,908 Current assetsCash and cash equivalents 160,521 64,620 188,771Trade and other receivables 387,577 185,135 201,480Trade investments 338,857 228,162 213,014Exploration properties 543,412 1,639,196 558,400 Total current assets 1,430,367 2,117,113 1,161,665 Total assets 1,628,999 2,187,800 1,467,573 Current liabilitiesTrade and other payables 84,262 347,868 36,888 Non-current liabilitiesDeferred taxation - 7,009 481 Total liabilities 84,262 354,877 37,369 Net assets 1,544,737 1,832,923 1,430,204 EquityCalled up share capital 186,941 137,048 170,226Share premium account 2,266,351 1,210,449 1,726,816Share option reserve 112,992 - 112,992Other reserves 255,955 650,351 253,260Retained losses (1,242,111) (564,466) (827,391) Shareholders' funds 1,580,128 1,433,382 1,435,903 Minority interests (35,391) 399,541 (5,699) Total equity 1,544,737 1,832,923 1,430,204 Cash flow statement Group Group Group 6 months to 6 months to Year to 31 December 31 December 30 June 2007 2006 2007 Unaudited Unaudited Unaudited £ £ £Cash flows from operating activitiesOperating loss (316,124) (384,418) (713,348)(Increase) in debtors (186,097) (79,713) (96,058)Increase/(decrease) in creditors 47,375 51,344 (37,803)Impairment of exploration properties 20,752 38,654 190,814Depreciation of fixed assets 4,008 - 7,130Sale of trade investments - 30,557 30,557Purchase of trade investments (150,000) (205,770) (189,332)Exploration property costs (19,331) (62,819) (62,819)Share based payments - - 112,992Currency adjustments 11,280 2,760 6,075Corporation tax paid - - (6,029) Cash (outflow) generated from operations (588,137) (609,405) (757,821) Cash outflows from investing activitiesInterest received 9,322 583 2,034Interest paid (148) (300) (3,787)Purchase of fixed assets (3,537) (19,362) (23,089) Net cash flows used in investing activities 5,637 (19,079) (24,842) Acquisitions and disposalsPurchase of subsidiary (2,000) - -Cash disposed of on deconsolidation of subsidiary - - (46,214) Net cash (outflow)/inflow from acquisitions and (2,000) - (46,214)disposals Cash inflows from financing activitiesProceeds from issue of shares 585,000 137,653 714,697Transaction costs of issue of shares (28,750) - (27,500)Subsidiary company share issue for cash - 100,375 100,375Subsidiary company short term loans - 225,000 - Net cash flows from financing activities 556,250 463,028 787,572 Net increase/(decrease) in cash and cash equivalents (28,250) (165,456) (41,305) Cash and cash equivalents at the beginning of period 188,771 230,076 230,076 Cash and cash equivalents at end of period 160,521 64,620 188,771 Consolidated Statement of changes in equity For the 6 months ended 31 December 2007 Share Share Share option Consolidation Retained Total capital premium reserve reserve earnings equity £ £ £ £ £ £ At 1 July 2006 129,897 1,079,947 - 550,156 (203,711) 1,556,289 Loss for the period - - - - (292,895) (292,895)Issue of shares 7,151 130,502 - - - 137,653Share issue expenses - - - - - -Deconsolidation - - - 100,195 (67,860) 32,335 At 31 December 2006 137,048 1,210,449 - 650,351 (564,466) 1,433,382 At 1 July 2006 129,897 1,079,947 - 550,156 (203,711) 1,556,289 Loss for the period - - - - (625,480) (625,480)Issue of shares 40,329 674,369 - - - 714,698Share issue expenses - (27,500) - - - (27,500)Share based payments - - 112,992 - - 112,992Deconsolidation - - - (296,896) 1,800 (295,096) At 30 June 2007 170,226 1,726,816 112,992 253,260 (827,391) 1,435,903 Loss for the period - - - - (414,720) (414,720)Issue of shares 16,715 568,285 - - - 585,000Share issue expenses - (28,750) - - - (28,750) Consolidation - - - 2,694 - 2,694 At 31 December 2007 186,941 2,266,351 112,992 255,954 (1,242,111) 1,580,127 Half-yearly report notes 1. Company and Group As at 31 December 2007, the Company had no operating subsidiaries and thereforehas not prepared Group financial statements. As at 31 December 2006 and 30 June2007, the Company had an operating subsidiary which became dormant shortlybefore its sale on 6 August 2007. The Company will report again for the year ending 30 June 2008. 2. Accounting policies Accounting policies adopted under IFRS These interim financial statements have been prepared in accordance withInternational Financial Reporting Standards as adopted by the European Union ("IFRS"). The basis of preparation and accounting policies used in preparing the interimstatements for the six months ended 31 December 2007 are set out below. Thebasis of preparation describes how IFRS has been applied under IFRS 1, theassumptions made by the Company about the Standards and interpretations expectedto be effective and the policies expected to be adopted when the Company issuesits first complete set of IFRS financial statements for the year ending 30 June2008. Statement of compliance This consolidated financial information of Regency Mines plc is prepared in accordance with IFRS as adopted by the European Union with the exception of IAS 34 "Interim Financial Reporting". Basis of preparation The consolidated financial information has been prepared in accordance withaccounting policies which will be adopted in presenting the full year annualreport and accounts. The full year annual report and accounts will be preparedfor the first time in accordance with International Financial ReportingStandards (IFRS) as adopted by the European Union. The group has therefore applied IFRS for the six month period ended 31 December2007, with comparative figures for the six month period ended 31 December 2006also prepared under IFRS as adopted by the European Union. In preparing this consolidated financial information, the Group has elected totake advantage of provisions within IFRS 1 "First-time adoption of InternationalFinancial Reporting Standards" ("IFRS 1"), which offer certain exemptions fromapplying IFRS to the opening IFRS balance sheet prepared at 1 June 2006. Inparticular: • IFRS 3, "Business Combinations", has not been applied retrospectively to business combinations that occurred prior to 1 June 2006. The carrying amount of goodwill in the opening IFRS balance sheet at 1 June 2006 is therefore its carrying amount at that date under UK GAAP;• IFRS 2, "Share-based payment", has not been applied to equity instruments that were granted after on 4 November 2004 and on 20 January 2006 all of which vested prior to 1 July 2006. The interim financial information is unaudited and does not constitute statutory financial statements within the meaning of section 240 of the Companies Act 1985. The Group's statutory consolidated financial statements for the year ended 30June 2007 were presented under UK GAAP, and have been delivered to the Registrarof Companies. The report of the auditors on those financial statements wasunqualified and did not contain a statement under section 237 (2) or (3) of theCompanies Act 1985. Comparative figures for the year ended 30 June 2007presented here are abridged and non-statutory, have been adjusted to reflect thetransition to IFRS and are unaudited. The consolidated financial statements have been prepared on a historical costbasis, except for derivative financial instruments, available for saleinvestments and intangible assets acquired in a business combination, which havebeen measured at fair value. The consolidated financial statements are presentedin sterling ("GBP") and a;; values are rounded to the nearest pound except wherestated. Significant accounting policies The accounting policies adopted in the preparation of the interim financialstatements will be consistent with those that will be followed in thepreparation of the Company's annual financial statements for the year ending 30June 2008. 3. Loss per share 6 months to 6 months to Year to 31 December 31 December 30 June 2007 2006 2007 Unaudited Unaudited Unaudited £ £ £ These have been calculated on a loss of: (414,720) (292,895) (625,480) The weighted average number of shares used was: 180,309,451 135,959,680 143,680,386Share options were not dilutive during the period. Basic loss per share: (0.23) pence (0.22) pence (0.44) pence 4. Transition to IFRS The financial information for the six months ended 31 December 2006 and theopening balance sheet at 1 July 2006 have been prepared in accordance withInternational Financial Reporting Standards (IFRS) for the first time. The Company's transition date to IFRS is 1 July 2006. The rules for first-timeadoption of IFRS are set out in IAS 1 'First time adoption of internationalreporting standards'. In preparing the IFRS financial information, thesetransition rules have been applied to the amounts reported previously undergenerally accepted accounting principles in the United Kingdom ('UK GAAP').IFRS generally requires full retrospecti9ve application of the Standards andInterpretations in force at the first reporting date. However, IFRS 1 allowscertain exemptions in the application of particular Standards to prior periodsin order to assist companies with the transition process. • Changes in presentation of financial information: o IAS1: The form and presentation of the UK GAAP statements has been changedto be compliant with IAS 1. o IAS 7: Cash flows under IFRS are presented within the Cash Flow Statementunder three main headings: cash flows from operating activities, from investingactivities and from financing activities. This has resulted in somepresentational changes compared to UK GAAP. There is no change to the netmovement of cash and cash equivalents. • Changes in accounting policies: o IAS 12: Under UK GAAP, deferred tax was recognised on the basis of timingdifferences, subject to certain exemptions. Under IAS 12, deferred tax isrecognised on the basis of taxable temporary differences, subject to certainexceptions. Temporary differences include all timing differences and manypermanent differences. This change has had no effect on any of the figuresreported. o Under IAS 39, the trade investments which are deemed to be held for shortterm gain are taken to the profit and loss account at fair value as opposed tobeing held at historical cost under UK GAAP. o Under IAS 39, the trade investments which are not held for short term gainand are categorised as 'available-for-sale' financial assets are restated atfair value on the balance sheet date as opposed to being held at historical costunder UK GAAP. The gain or loss on revaluing the asset is held under a 'financial asset revaluation reserve' in Capital and Reserves. The changesarising are included in the restatements for IFRS. o Company has chosen to adopt IFRS 3. Accordingly, business combinationsfrom the date of transition will be accounted for under IFRS 3 using thepurchase method. • Reconciliations of UK GAAP to IFRS: o For the period ended 31 December 2006 and year ended 30 June 2007 there aredifferences between the income statement and balance sheet amounts reportedunder UK GAAP and IFRS as noted on the following pages. In addition, there aredifferences under UK GAAP and IFRS for the opening balance sheet at 1 July 2006on transition. o There is no monetary impact on the cash flow statement for these periods. 5. Market value of investments As at 31 December 2007, the market values of publicly quoted investments were asfollows: • Associate company investments: £2,839,375 (book value £242,500) • Trade investments: £288,414 (book value £288,414). 6. 7. Restatement of reported figures Consolidated financial information as at 1 July 2006 As originally Restate per Restate for IFRS reported note 7 IFRS under UK GAAP £ £ £ £Balance sheetNon-current assetsIntangible assets 1,657,142 (1,657,142) - -Goodwill 45,000 - - 45,000 Total non-current assets 1,702,142 (1,657,142) - 45,000 Current assetsCash and cash equivalents 230,076 - - 230,076Trade and other receivables 105,422 - - 105,422Trade investments 48,540 - - 48,540Exploration properties - 1,657,142 - 1,657,142 Total current assets 384,038 1,657,142 - 2,041,180 Total assets 2,086,180 - - 2,086,180 Current liabilitiesTrade and other payables 80,941 - - 80,941 Total liabilities 80,941 - - 80,941 2,005,239 - - 2,005,239Net assets Capital and reservesShare capital 129,897 - - 129,897Share premium account 1,079,947 - - 1,079,947Retained losses (203,711) - - (203,711)Other reserves 550,156 - - 550,156 Shareholders' funds 1,556,289 - - 1,556,289 Minority interests 448,950 - - 448,950 Total equity 2,005,239 - - 2,005,239 Restatement of reported figures, continued Consolidated financial information for the half-year ended 31 December 2006 As originally Restate per Restate for IFRS reported note 7 IFRS under UK GAAP £ £ £ £Balance sheetNon-current assetsTangible assets 19,361 - - 19,361Intangible assets 1,690,100 (1,690,100) - -Investments in associates - - 6,326 6,326Goodwill 45,000 - - 45,000 Total non-current assets 1,754,461 (1,690,100) 6,326 70,687 Current assetsCash and cash equivalents 64,620 - - 64,620Trade and other receivables 185,135 - - 185,135Trade investments 269,799 (65,000) 23,363 228,162Exploration properties - 1,690,100 (50,904) 1,639,196 Total current assets 519,554 1,625,100 (27,541) 2,117,113 Total assets 2,274,015 (65,000) (21,125) 2,187,800 Current liabilitiesTrade and other payables 347,868 - - 347,868 Non-current assetsDeferred taxation 7,009 7,009 Total liabilities 347,868 - 7,009 354,877 Net assets 1,926,147 (65,000) (28,224) 1,832,923 Capital and reservesShare capital 137,048 - - 137,048Share premium account 1,210,449 - - 1,210,449Other reserves 758,755 (65,000) (43,404) (650,251)Retained losses (591,687) - 27,221 (564,466) Shareholders' funds 1,514,565 (65,000) (16,183) 1,433,382 Minority interests 411,582 - (12,041) 399,541 Total equity 1,926,147 (65,000) (28,224) 1,832,923 Restatement of reported figures, continued Consolidated financial information for the half-year ended 31 December 2006,continued As originally Restate for IFRS reported under IFRS UK GAAP £ £ £Income statementTurnover 30,557 (30,557) -Direct costs (29,511) 29,511 - Gross profit 1,046 (1,046) - Exploration expenses (204,582) - (204,582)Administrative expenses (179,857) - (179,857)Currency gain 21 - 21 Operating loss (383,372) (1,046) (384,418) Share of operating loss in associate - (1,174) (1,174)Profit on sale of trade investment - 1,046 1,046Surplus on revaluation of financial assets - 23,363 23,363Interest receivable 583 - 583Interest payable (300) - (300) Loss on ordinary activities for the period (383,089) 22,189 (360,900) Deferred taxation provision - (7,009) (7,009) Loss on ordinary activities after taxation (383,089) 15,180 (367,909) Minority interests 79,958 (4,944) 75,014 Retained loss attributable to Shareholders (303,131) 10,236 (292,895) Restatement of reported figures, continued Consolidated financial information for the year ended 30 June 2007 As originally Restate for IFRS reported under IFRS UK GAAP £ £ £Balance sheetNon-current assetsTangible assets 15,958 - 15,958Investments in associates - 244,950 244,950Goodwill 45,000 - 45,000 Total non-current assets 60,958 244,950 305,908 Current assetsCash and cash equivalents 188,771 - 188,771Trade and other receivables 191,421 10,559 201,480Trading asset investments 420,753 (207,739) 213,014Exploration properties 631,443 (73,043) 558,400 Total current assets 1,432,388 (279,223) 1,161,665 Total assets 1,493.346 (25,973) 1,467,573 Current liabilitiesTrade and other payables 61,198 (24,310) 36,888Deferred taxation - 481 481 Total liabilities 61,198 (23,829) 37,369 Net assets 1,432,148 (1,944) !,430,204 Capital and reservesShare capital 170,226 - 170,226Share premium account 1,726,816 - 1,726,816Share option reserve 112,992 - 112,992Other reserves 247,330 5,930 253,260Retained losses (851,676) 24,285 (827,391) Shareholders' funds 1,405,688 30,215 1,435,903 Minority interests 26,460 (32,159) (5,699) Total equity 1,432,148 (1,944) 1,430,204 Restatement of reported figures, continuedConsolidated financial information for the year ended 30 June 2007 As originally Restate for IFRS reported under IFRS UK GAAP £ £ £Income statementTurnover 57,786 (27,229) -Cost of sales (29,511) 29,511 - Gross profit 28,275 (1,046) 27,229 Exploration expenses (289,384) 13,106 (276,278)Administrative expenses (451,864) (13,136) (465,000)Currency loss (204) 905 701 Operating loss (713,177) (171) (713,348) Share of operating loss in associate (27,335) 22,285 5,050Profit on sale of trade investment - 1,046 1,046Surplus on revaluation of financial assets - 1,604 1,604Interest receivable 2,034 - 2,034Interest payable (3,787) - (3,787) Loss on ordinary activities for the period (742,265) 24,764 (717,501) Deferred taxation provision - (481) (481) Loss on ordinary activities after taxation (742,265) 24,283 (717,982) Minority interests 94,301 (1,799) 92,502 Retained loss attributable to Shareholders (647,964) 22,484 (625,480) 8. Restatement of reported figures - notes: During 2007, exploration properties previously reported as intangible fixedassets, were reclassified and reported as current assets. This correction hasnow been applied as at 30 June 2006 and 31 December 2006. Copies of this half-yearly report are available free of charge by application inwriting to the Company Secretary at the Company's business office, 115Eastbourne Mews, Paddington, London W2 6LQ, or by email toadmin@regency-mines.com. End Enquiries: Andrew Bell 07766 474849 Red Rock Resources plc Chairman John Simpson 020 7512 0191 Blomfield Corporate Finance Ltd Nominated Adviser Ron Marshman / John Greenhalgh 020 7628 5518 City of London PR Limited Public Relations Updates on the Company's activities are regularly posted on the Company'swebsite, www.regency-mines.com This information is provided by RNS The company news service from the London Stock Exchange