RMM.L Regulatory News (RMM)

30 Oct 2006 14:59

Rambler Metals & Mining PLC30 October 2006 RAMBLER METALS AND MINING PLC CHAIRMAN'S STATEMENTFOR THE PERIOD 1 SEPTEMBER 2005 TO 31 JULY 2006 We are pleased to report on the eleven month period of activity for RamblerMetals and Mining PLC since it's listing on London's AIM market in the spring of2005. In the 2006 fiscal period, which ended 31 July 2006, the Company completedits Stage 1 Drilling program on the Rambler copper and gold project inNewfoundland and Labrador and commenced what has proven to be a very successfulStage 2 follow up program which has produced the exciting, high grade drillresults discussed below. Our Company was founded in 2004 when Altius Minerals Corporation ("Altius"), aNewfoundland and Labrador based resource company, contributed to the Company'sasset base an option to acquire and develop the Rambler property. The Rambler property had been a former underground copper and gold producingproperty that ceased production when the deposit reached a then third partyproperty boundary. This neighbouring property was subsequently consolidatedbefore being brought into the Company. During this last fiscal period theCompany has exercised its option to acquire the remaining Rambler property andnow owns a 100% interest in the property. Based on the rapid exploration success achieved during the last eleven monthsand the desire to advance the Rambler project towards production, the Company isvery pleased to have recently announced the appointment of Mr. George Ogilvie asits first VP and Chief Operating Officer. Mr. Ogilvie, a mining engineeringgraduate of Strathclyde University, has 17 years of experience in developingmining projects in South Africa and North America, most recently in Sudburywhere he was Mine Manager for the McCreedy West Mine project. To support MrOgilvie and staff, an office for the Company has been opened in Baie Verte,Newfoundland and Labrador. Operational The principal operating activity for the Company last year was the Stage 1surface drilling program completed in November 2005 and which then transitionedto the Stage 2 directional drilling program. Stage 1 of the program involved 16 widely spaced, deep diamond drill holesdesigned to trace the down-plunge continuations of the Ming Horizon and the MingFootwall Zone (MFZ) beyond the former property boundary and to test for newdeposits. This program consisting of 13,759 meters of drilling whichsuccessfully extended the plunge length of the MFZ an additional 1650 feet andset up the pilot holes from which the Stage 2 detailed directional drillingcould be completed. The Stage 2 directional drill program is using the Devico drilling system toprovide directional drilling of the copper-gold rich massive sulphide MingHorizon and the copper-rich MFZ. Drill hole spacing in this stage is targetedfor 165 feet (50 meter) centres and to date 16 branch holes have been drilled. Highlights from the Stage 2 drilling program include RM-06-04c and RM-06 04bboth located close to exisiting underground mine infrastructure. The first holereturned 122 feet of 2.14% copper and an additional 64 feet of 2.66% copperwhile the latter intersected 49.2 feet of 2.53% copper and 44.3 feet of 2.49%copper. Later in the program branch hole RM-0604d returned 34.4 feet of 3.2%copper and RM-06-04e had two significant intersections- 24.6 feet of 4.17%copper plus 4.5 grams of gold and 57.1 feet of 3.18% copper. Finally, a new veryhigh grade copper gold zone was discovered with RM-06-4f intersecting 19.7 feetof 14.4% copper and 1.8 grams of gold. Apart from the exploration program, preliminary steps required for a dewateringprogram were undertaken -including comprehensive water sampling, preliminarydesign for water treatment and volumetric calculations. This work has continuedthrough this fiscal year as well and with the appointment of the new ChiefOperating Officer will advance substantially. Financial The consolidated loss after taxation of the Company in respect of the elevenmonth period ended 31 July 2006 amounted to £72,946 (a loss per share of 0.2 p)versus a loss of £31,313 for the year earlier (a loss per share of 0.2p). The Company's only source of income during the period was bank deposit interestwhich amounted to £199,599. The net assets of the company amounted to £7,773,229 as at the period end whichincludes intangible assets amounting to £2,894,278. Intangible assets consist ofaccumulated deferred exploration expenditures in the Company's copper goldRambler property. The Company's policy is to capitalise these costs pendingdetermination of the feasibility of the project. In April 2005, in conjunction with the Company's quotation on the AIM market,the company completed a private placement of shares with institutional investorsto raise £8 million before expenses. The Company did not complete any financingsduring the period ended 31 July 2006. The increases seen over the last year in precious metals and base metals pricesis unprecedented and has led to great demand for people and equipment in theexploration and mining industry. I am therefore most pleased that, as I mentionabove, we have been able to attract Mr. George Ogilvie to his important role,and I would like to thank the Altius exploration team for its hard work. Mythanks also to the officers and directors of the Company for its progress in theperiod. I am optimistic that the 2007 fiscal year will see further encouragingdevelopments. D H W Dobson Chairman Date: 27 October 2006 PRELIMINARY STATEMENT This preliminary statement was approved by the Board of Directors on 30 October2006 and has been agreed by the auditors. It does not constitute statutoryaccounts within the meaning of section 240 of the Companies Act 1985. Thestatutory accounts will be sent to shareholders shortly and will be filedfollowing the Company's Annual General Meeting. The Auditors have reported onthese accounts; their report is unqualified and does not contain statementsunder section 237(2) or (3) of the Companies Act 1985. RAMBLER METALS AND MINING PLC CONSOLIDATED PROFIT AND LOSS ACCOUNTFOR THE PERIOD 1 SEPTEMBER 2005 TO 31 JULY 2006 Period Period 1.9.05 to 31.7.06 14.4.04 to 31.8.05TURNOVER £ £Administrative expenses 272,545 135,056 OPERATING LOSS (272,545) (135,056)Interest receivable and similar income 199,599 103,743 LOSS ON ORDINARY ACTIVITIES (72,946) (31,313) BEFORE TAXATIONTax on loss on ordinary activities - - LOSS FOR THE FINANCIAL PERIOD (72,946) (31,313)AFTER TAXATION EARNINGS PER SHAREBasic and diluted earnings per share (0.2p) (0.2p) CONTINUING OPERATIONSAll amounts relate to continuing activities GROUP STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES Period Period 1.9.05 to 31.7.06 14.4.04 to 31.8.05 £ £Loss for the financial period (72,946) (31,313)Foreign exchange gains 22,537 170,026 TOTAL RECOGNISED GAINS AND LOSSESFOR THE FINANCIAL PERIOD (50,409) 138,713 CONSOLIDATED BALANCE SHEET31 JULY 2006 31.7.06 31.8.05FIXED ASSETS £ £ £ £Intangible assets 2,894,278 1,096,817Tangible assets 2,884 -Investments - - 2,897,162 1,096,817 CURRENT ASSETS Debtors 113,490 152,251 Investments 5,442,060 6,865,272 Cash at bank and in hand 56,948 40,648 5,612,498 7,058,171 CREDITORS Amounts falling due within one year 736,431 331,350 NET CURRENT ASSETS 4,876,067 6,726,821 TOTAL ASSETS LESS CURRENT 7,773,229 7,823,638 LIABILITIES CAPITAL AND RESERVESCalled up share capital 400,300 400,300Share premium 7,164,625 7,164,625Other reserves 120,000 120,000Profit and loss account 88,304 138,713 SHAREHOLDERS' FUNDS 7,773,229 7,823,638 CASH FLOW STATEMENTFOR THE PERIOD 1 SEPTEMBER 2005 TO 31 JULY 2006 Period Period 1.9.05 to 31.7.06 14.4.04 to 31.8.05 £ £ £ £Net cash outflowfrom operating activities (279,862) (159,302) Returns on investments and 207,875 73,094servicing of financeCapital expenditure (1,297,915) (557,758)Acquisitions and disposals - (65,065) (1,369,902) (709,031 Management of liquid resources 1,403,362 (6,865,272)Financing - 7,444,925Increase/(decrease) in cash in the period 33,460 (129,378) Reconciliation of net cash flowto movement in net fundsIncrease/(decrease) in cash in the period 33,460 (129,378)Cash (inflow)/outflowfrom (decrease)/increase in liquid resources (1,403,362) 6,865,272 Change in net funds resulting from cash flows (1,369,902) 6,735,894 Movement in net funds in the period (1,369,902) 6,735,894 Effect of foreign exchange differences (37,010) 170,026 Net funds at 1 September 6,905,920 - Net funds at 31 July 5,499,008 6,905,920 Reconciliation of operating loss to net cash outflowfrom operating activitiesOperating loss (272,545) (135,056)Depreciation charges 361 -Decrease/(increase) in debtors 30,485 (121,602)(Decrease)/increase in creditors (38,163) 97,356 Net cash outflow from operating activities (279,862 (159,302) RAMBLER METALS AND MINING PLC NOTES TO THE FINANCIAL STATEMENTSFOR THE PERIOD 1 SEPTEMBER 2005 TO 31 JULY 2006 1. NATURE OF OPERATIONS AND GOING CONCERN The Company is in an early stage of development, and while it currently hassignificant cash resources, it does not generate any significant revenues andits success will depend largely upon the outcome of its exploration andevaluation programmes. In common with many exploration companies, the Company raises finance for itsexploration and appraisal activities in discrete tranches. Further funding israised as and when required. When any of the Group's projects move to thedevelopment stage, specific financing will be required. The Group's cashresources are expected to be sufficient to fund the Group's planned explorationand development activities to the end of 2007. 2. ACCOUNTING POLICIES Accounting convention The financial statements have been prepared under the historical cost conventionand are in accordance with applicable accounting standards. Basis of consolidation and accounting for goodwill The Group accounts consolidate the accounts of Rambler Metals and Mining PLC andall its subsidiary undertakings. The acquisition method of accounting is adopted where relevant conditions arefulfilled. The purchase consideration is allocated to the assets and liabilitieson the basis of fair value at the date of acquisition. Goodwill arising onconsolidation is capitalised and shown within fixed assets. Amortisation ofgoodwill arising from acquisitions is deferred until production occurs, when itwill be charged over the expected production period of the project. Where aproject is abandoned or is determined to not be economically viable, thegoodwill is written off. The acquisition by the Company of Rambler Mines Limited in February 2005 wasaccounted for in accordance with the principles of merger accounting set out inFRS 6 on "Acquisitions and Mergers". Accordingly, the consolidated financialstatements include the results of the Company since incorporation on 14 April2004 and are presented as if Rambler Mines Limited had been controlled by thecompany throughout the period from its incorporation. Deferred exploration and evaluation costs These comprise costs directly incurred in exploration and evaluation as well asthe cost of mineral licences. They are capitalised as intangible assets pendingdetermination of the feasibility of the project. When the existence ofeconomically recoverable reserves is established the related intangible assetsare transferred to tangible fixed assets and the exploration and evaluationcosts are amortised on a depletion percentage basis. Where a project isabandoned or is determined not to be economically viable, the related costs arewritten off. The recoverability of deferred exploration and evaluation costs isdependent upon a number of factors common to the natural resource sector. Theseinclude the extent to which the Company can establish economically recoverablereserves on its properties, the ability of the Company to obtain necessaryfinancing to complete the development of such reserves and future profitableproduction or proceeds from the disposition thereof. Tangible fixed assets Depreciation is provided at the following annual rates in order to write offeach asset over its estimated useful life. Computer equipment - straight line over 3 years Deferred tax Deferred taxation is provided on material timing differences between theincidence of income and expenditure for taxation and accounting purposes on afull provision basis in accordance with the provisions set out in FRS 19'Deferred Tax'. Deferred tax balances are not discounted. Deferred tax assets are only recognised when they arise from timing differenceswhere their recoverability in the short term is regarded as being probable. Foreign currencies Assets and liabilities in foreign currencies are translated into sterling at therates of exchange ruling at the balance sheet date. Transactions in foreigncurrencies are translated into sterling at the rate of exchange ruling at thedate of transaction. Exchange differences are taken into account in arriving atthe operating result. On consolidation, the assets and liabilities of the group's overseas operationsare translated at exchange rates prevailing on the balance sheet date. Incomeand expense items are translated at the average exchange rates for the periodunless exchange rates fluctuate significantly. Differences arising fromre-translation of the opening net assets of foreign subsidiaries and any relatedloans are taken directly to reserves and all other exchange differences aretaken to the Profit and Loss Account. Investments In the Company's Balance Sheet, the investment in Rambler Mines Limited includesthe nominal value of the shares issued as consideration for the acquisition ofthat company. As permitted by sections 131 and 133 of the Companies Act 1985,no premium was recorded on the issue of each shares. On consolidation, thedifference between the nominal value of the shares issued and received wasdebited directly to the merger reserve. Liquid resources In accordance with FRS 1 (revised 1996) on 'Cash Flow Statements', for cash flowpurposes, cash includes net cash in hand and bank deposits payable on demandwithin one working day and liquid resources include all of the Group's otherbank deposits. Capital instruments Shares are included in shareholders' funds. Other instruments are classified asliabilities if they contain an obligation to transfer economic benefits and ifnot they are included in shareholders' funds. The finance cost recognised inthe profit and loss account in respect of capital instruments other than equityshares is allocated to periods over the term of the instrument at a constantrate on the carrying amount. 3. EARNINGS PER SHARE Period Period 14.4.06 1.9.05 to 31.7.06 to 31/8/05 pence penceEarnings per ordinary share (0.2) (0.2) Earnings per share have been calculated on the net basis of the loss on ordinaryactivities after taxation of £72,946 (2005: £31,313) on 40,030,000 (2005:13,579,000) shares being the weighted average of shares in issue. There were nodilutive potential ordinary shares outstanding at the end of the period. 4. RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS Group 31/7/06 31/8/05 £ £Loss for the financial period (72,946) (31,313)Foreign exchange gains 22,537 170,026New equity share capital subscribed - 400,300Premium on new share capital subscribed - 7,164,625Premium arising on acquisition of 51190Newfoundland & Labrador Inc - 120,000Net (decrease in)/increase in shareholders' funds (50,409) 7,823,638 Opening shareholders' funds 7,823,638 -Closing shareholders' funds 7,773,229 7,823,638 5. ANALYSIS OF CASH FLOWS FOR HEADINGS NETTED IN THE CASH FLOW STATEMENT Period 1.9.05 to 31.7.06 Period 14.4.04 to 31.8.05 £ £Returns on investments and servicing of financeInterest received 207,875 73,094Net cash inflow for returns on investments and 207,875 73,094servicing of finance Capital expenditurePurchase of intangible fixed assets (1,294,670) (557,758)Purchase of tangible fixed assets (3,245)Net cash outflow for capital expenditure (1,297,915) (557,758) Acquisitions and disposalsPurchase of 51190 Newfoundland & Labrador Inc - (65,065)Net cash outflow for acquisitions and disposals - (65,065) Management of liquid resourcesCash withdrawn from/(placed in) other liquid 1,403,362 (6,865,272)investmentsNet cash inflow/(outflow) from management of 1,403,362 (6,865,272)liquid resources FinancingShare issue - 7,444,925Net cash inflow from financing - 7,444,925 6. ANALYSIS OF CHANGES IN NET FUNDS At 1.9.05 Cash flow Exchange At translation 31.7.06 £ £ £ £Net cashCash at bank and in hand 40,648 33,460 (17,160) 56,948 40,648 33,460 (17,160) 56,948 Liquid resources:Current asset investments 6,865,272 (1,403,362) (19,850) 5,442,060 6,865,272 (1,403,362) (19,850) 5,442,060 Total 6,905,920 (1,369,902) (37,010) 5,499,008 7. The Accounting reference date for the Group is 31 July. This information is provided by RNS The company news service from the London Stock Exchange