Last checked at 7 Dec 2010 14:00
SUNRISE RESOURCES PLC
("Sunrise" or "the Company")
Final Results
The Board of Sunrise, the AIM-quoted diversified mineral exploration and development specialist, is pleased to announce today final results for the year ended 30 September 2010, a year which has seen the Company become re-invigorated, re-invested and re-named.
Key Points
·; Change of name to Sunrise Resources plc following strategic diversification and acquisition of gold, base-metals and industrial minerals projects in Canada and Ireland;
·; Drilling underway at Long Lake Gold Project near Sudbury in Ontario, Canada (past production of 56,000 ounces of gold recorded before mine closure in 1930s);
·; Advancing Derryginagh barite project through to evaluation of cash flow opportunity. Encouraging test results received;
·; Diamond project portfolio enhanced in early 2010 with application for exploration licence over diamondiferous kimberlites near Cue in Western Australia, and
·; Group funded through recent over-subscribed placing to raise £1.2 million before expenses.
Commenting on today's results, Patrick Cheetham, Executive Chairman, said:
"Our newly acquired projects are now generating news flow and attracting a broader investor interest which has translated into increased share trading liquidity and a higher market capitalisation. I would therefore like to welcome our new shareholders and thank those long-standing shareholders that have shown patience during the difficult past two years for the Company. There is still much value to be unlocked from our project portfolio and your Board looks forward to 2011 with renewed optimism."
Further information:
Sunrise Resources plc Tel: +44 (0)1625-505947
Patrick Cheetham, Executive Chairman Mobile: +44 (0)7767 458751
www.sunriseresourcesplc.com
Northland Capital Partners Ltd Tel: +44 (0)20 7492 4750
Gavin Burnell
Charles Vaughan (Broking)
Yellow Jersey PR Tel: +44 (0)20 8980 3545
Dominic Barretto
Chairman's Statement
I am pleased to report on your Company's progress for the year ended 30 September 2010; a period of positive change and improving fortunes. The strategic project acquisitions of the past 12 months have resulted in a change of name to Sunrise Resources plc and a diversification of the Company's commodity interests from diamond exploration in Finland into gold, base-metals and industrial minerals in Canada and Ireland.
Long Lake Project, Canada
In May this year we were fortunate to secure an option to acquire the Long Lake Gold Mine claims near Sudbury in Ontario, Canada where a drilling programme is underway. The Long Lake mine produced 57,000 ounces of gold from 200,000 tonnes of gold ore from shallow depths at a head grade of 11g/t gold in two short periods during the first half of the 20th Century. The current drilling programme will test for extensions to the known mineralisation and also a number of outlying targets. It is the culmination of months of detailed planning, archive research and technical evaluation and, coupled with results from a 3D geophysical survey also in progress, should enable us to scope the potential size and geometry of the gold mineralised system. We have budgeted for a follow up drilling programme to start as soon as results become available.
Whilst gold is our prime target at Long Lake, Sudbury is 'elephant country' for nickel-copper-platinum group metals and it is the most productive nickel mining camp in the world having produced since 1883 over 25% of the world's total nickel with over 1.7 billion tonnes of past production, reserves and resources. Sunrise Resources' project claims cover a potential 10km long extension to the currently producing Copper Cliff offset dyke system where our field work has already identified high-priority targets for future testing. It is rare to find such prospective environments for both gold and nickel mineralisation in the same claim group.
Derryginagh Barite Project, Ireland
In south-west Ireland, encouraging results are now starting to flow from the Company's Derryginagh barite project where we are targeting the production of high value white barite for use as an industrial filler - for example in paint and plastics. As with any industrial minerals project, market factors rather than resource size will determine future production rates and so it is pleasing that we have been able to report positively during the year on the quality of barite concentrates produced by our preliminary metallurgical testwork. Furthermore, these concentrates have been produced using simple gravity processing methods suggesting the potential for a relatively low capital and operating cost processing plant. We are now planning a concept study to quantify these costs, and evaluate planning and production timelines and the appropriate scales of production. This will allow us to determine the resource base that needs to be established by the drilling programme that we have scheduled for 2011.
Diamond Interests
The diamond project portfolio was enhanced in early 2010 with an application for an exploration licence in Western Australia over an area hosting diamondiferous kimberlites. This application is held through a new Australian subsidiary, Sunrise Minerals Australia Pty Ltd.
Whilst our diamond exploration projects have been very much on the back burner in 2010 it is encouraging to note that, as an asset class, diamonds have recovered most if not all of their sparkle since being so badly affected by the recent world financial crisis and in 2011 the Board will be considering how best to capitalise on our valuable portfolio of diamond exploration interests.
Financials
The audited financial statements for 2010 have been prepared in full compliance with International Financial Reporting Standards (IFRS) as adopted by the European Union.
The Group reported a loss of £214,830 for the year (2009: £227,563).
Placing
At the end of November, with good support from existing shareholders and new investors, the Board completed an over-subscribed placing to raise £1.2 million before expenses. The placing will allow the Company to accelerate its planned drill programmes, in particular, at the Long Lake gold project, without the hiatus that a deferred fundraising would have involved.
In Conclusion
Our newly acquired projects are now generating news flow and attracting a broader investor interest which has translated into increased share trading liquidity and a higher market capitalisation. I would therefore like to welcome our new shareholders and thank those long-standing shareholders that have shown patience during the difficult past two years for the Company. There is still much value to be unlocked from our project portfolio and your Board looks forward to 2011 with renewed optimism.
Patrick Cheetham
Executive Chairman
7 December 2010
Consolidated Income Statement
for the year ended 30 September 2010
2010 £ |
2009 £ | |
Pre-licence exploration costs | 27,398 | 53,025 |
Impairment of deferred exploration cost | - | 9,104 |
Loss on disposal of subsidiary | - | 21,113 |
Administrative expenses | 188,633 | 161,652 |
Operating loss | (216,031) | (244,894) |
Interest receivable | 1,201 | 8,572 |
Foreign exchange gains | - | 8,759 |
Loss on ordinary activities before taxation | (214,830) | (227,563) |
Tax on loss on ordinary activities | - | - |
Loss on ordinary activities after tax | (214,830) | (227,563) |
Loss for the year attributable to equity holders | (214,830) | (227,563) |
Loss per share - basic and diluted (pence) | (0.10) | (0.12) |
All amounts relate to continuing activities.
Consolidated Statement of Comprehensive Income
for the year ended 30 September 2010
| Group 2010 |
Group 2009 |
£ | £ | |
| Loss for the year |
(214,830) |
(227,563) |
| Comprehensive (loss)/income for the year |
(214,830) |
(227,563) |
Consolidated and Company Statement of Financial Position
at 30 September 2010
Group | Company | Group & Company | |
2010 | 2010 | 2009 | |
£ | £ | £ | |
Non-current assets | |||
Intangible assets | 931,173 | 931,173 | 783,050 |
Investment in subsidiary | - | 12,969 | - |
931,173 | 944,142 | 783,050 | |
Current assets | |||
Receivables | 22,807 | 22,807 | 22,197 |
Cash and cash equivalents | 340,512 | 340,512 | 287,277 |
363,319 | 363,319 | 309,474 | |
Current liabilities | |||
Trade and other payables | (75,799) | (75,799) | (66,425) |
Net current assets | 287,520 | 287,520 | 243,049 |
Net assets | 1,218,693 | 1,231,662 | 1,026,099 |
Equity | |||
Called up share capital | 248,866 | 248,866 | 187,783 |
Share premium account | 2,420,203 | 2,420,203 | 2,203,812 |
Share option reserve | 181,521 | 181,521 | 51,571 |
Accumulated losses | (1,631,897) | (1,618,928) | (1,417,067) |
Equity attributable to owners of the parent | 1,218,693 | 1,231,662 | 1,026,099 |
Consolidated and Company Statement of Cash Flows
for the year ended 30 September 2010
Group |
Company |
Group & Company | |
2010 | 2010 | 2009 | |
£ | £ | £ | |
|
|
|
|
Operating activities |
|
|
|
|
|
|
|
Operating loss | (216,031) | (203,062) | (244,894) |
Share based payment charge | 18,846 | 18,846 | 11,774 |
Shares issued in lieu of net wages | 19,091 | 19,091 | 17,439 |
Share issued in lieu of payment for intangible assets |
- |
- |
425 |
Impairment charge | - | - | 27,261 |
(Increase)/Decrease in accounts receivable | (610) | (610) | 6,820 |
Increase/(Decrease) in accounts payable | 9,374 | 9,374 | (8,171) |
| |||
Net cash outflow from operating activity | (169,329) | (156,360) | (189,346) |
| |||
Investing activities |
| ||
|
| ||
Interest received | 1,201 | 1,201 | 8,572 |
Purchase of intangible fixed assets | (128,637) | (128,637) | (51,547) |
Foreign exchange gains | - | - | 8,759 |
Investment in subsidiary | - | (12,969) | - |
|
| ||
Net cash outflow from investing activity | (127,436) | (140,405) | (34,216) |
| |||
Financing activities | |||
|
|
|
|
Issue of share capital (net of expenses) | 350,000 | 350,000 | - |
|
|
|
|
Net cash inflow from financing activity | 350,000 | 350,000 | - |
|
|
|
|
Net increase/(decrease) in cash and cash equivalents |
53,235 |
53,235 |
(223,562) |
|
|
|
|
Cash and cash equivalents at start of year | 287,277 | 287,277 | 510,839 |
|
|
|
|
Cash and cash equivalents at 30 September | 340,512 | 340,512 | 287,277 |
NOTES
1. Accounting policies
The financial statements have been prepared on the basis of the recognition and measurement requirements of International Financial Reporting Standards (IFRS), as adopted by the European Union, and their interpretations adopted by the International Accounting Standards Board (IASB). They have also been prepared in accordance with those parts of the Companies Act 2006 applicable to companies reporting under IFRS.
In common with many exploration companies, the Company raises finance for its exploration and appraisal activities in discrete tranches. Further funding is raised as and when required. When any of the Group's projects move to the development stage, specific project financing will be required.
The directors prepare annual budgets and cash flow projections that extend beyond 12 months from the date of this report. These projections include the proceeds of future fundraising necessary within the next 12 months to meet the Company's and Group's planned discretionary project expenditures and to maintain the Company and Group as a going concern. Although the Company has been successful in raising finance in the past, there is no assurance that it will obtain adequate finance in the future. This represents a material uncertainty related to events or conditions which may cast significant doubt on the entity's ability to continue as a going concern and, therefore, that it may be unable to realize its assets and discharge its liabilities in the normal course of business. However, the directors have a reasonable expectation that they will secure additional funding when required to continue meeting corporate overheads and exploration costs for the foreseeable future and therefore believe that the going concern basis is appropriate for the preparation of the financial statements.
2. Publication of Non-Statutory Accounts
The financial information set out in this announcement does not constitute the Company's Statutory Accounts for the period ended 30 September 2010 or 2009. The financial information for 2009 is derived from the Statutory Accounts for 2009. Full audited accounts in respect of that financial period have been delivered to the Registrar of Companies.
The Statutory Accounts for 2010 will be delivered to the Registrar of Companies following the Company's Annual General Meeting. The auditors have reported on the 2010 and 2009 accounts. The 2010 accounts did not contain a statement under the Companies Act 2006 s498(2) or (3), and the 2009 accounts did not contain a statement under the Companies Act 1985 s237(2) or (3), and both received an unqualified audit opinion. However there was an emphasis of matter in relation to a requirement that the Company raise funds in the future to continue as a going concern.
6. Loss per share | |||
Loss per share has been calculated on the loss and the weighted average number of shares in issue during the year. | |||
2010 |
2009 | ||
Loss (£) | (214,830) | (227,563) | |
Weighted average shares in issue (No.) | 223,364,525 | 185,959,962 | |
Basic and diluted loss per share (pence) | (0.10) | (0.12) | |
The loss attributable to ordinary shareholders and weighted average number of ordinary shares for the purpose of calculating the diluted earnings per ordinary share are identical to those used for the basic earnings per ordinary share. This is because the exercise of share warrants would have the effect of reducing the loss per ordinary share and is therefore not dilutive under the terms of IAS 33. | |||
4. Dividend
The directors are unable to recommend the payment of any ordinary dividend.
5. Annual Report
The Company's 2010 Annual Report will be published and sent to shareholders in due course and copies will be available to the public, free of charge, from the Registered Office of the Company at Sunrise House, Hulley Road, Macclesfield, Cheshire SK10 2LP and will be downloadable from the Company's website at www.sunriseresourcesplc.com.