Last checked at 21 May 2008 14:20
Interim Statement 2008
Chairman's Statement
I am pleased to report the Company's progress and interim results for the six month period ended 31 March 2008.
Review of Activities
The Company's diamond exploration in Finland during the period was concentrated in the Kaavi-Kuopio region, both on our own claim areas and on the claims where we are earning a joint venture interest from Nordic Diamonds Inc.
Our strategy in this region is based on the concept of a central diamond processing plant treating ore from a number of kimberlites, some of which, for example Kimberlites 12 (1.6 hectares) and 21 (1.3 hectares), are already known to have interesting grades from historic bulk sampling. Recent work has focused on evaluating less well sampled kimberlites - 10,17 and 14 - and on making new kimberlite discoveries.
In February 2008 we announced the finding of macrodiamonds in drill samples from Kimberlite Pipes 10 and 17 as well as a significant number of larger sized stones and a relatively coarse stone size distribution in the sample from Pipe 17. The diamonds recovered from Pipe 17 have positive value characteristics, most being colourless and of moderate to good quality. Pipe 17, which has a surface area of approximately 2 hectares, is considered to have further commercial potential and the Company's consultant, Mineral Services, has recommended follow up and larger scale sampling.
Drill samples from Pipe 14 are still being evaluated due to the difficulties experienced in picking diamonds from the large quantity of concentrate that was initially recovered from this kimberlite.
Work is advanced at Targets 295 (Nordic JV) and 298 (100% Sunrise) near Kuopio where we are narrowing the search for the source of diamonds and diamondiferous kimberlite found in surface sediments. A recent magnetic survey at Target 298 has identified a magnetic anomaly at the head of the diamondiferous kimberlite boulder train which now needs to be drill tested. Further trenching is also planned to locate the source of microdiamonds and kimberlite fragments found on Target 295.
We have continued to leverage on our exclusive licence to use the BHP Billiton diamond exploration database fro Finland with the recent announcement of an agreement with Mantle Diamonds Limited giving Sunrise a 20% joint venture interest, free carried to a mining decision, in two kimberlite targets identified from the database on ground controlled by Mantle. These targets are located close to the Lahtojoki pipe currently being bulk sampled by Mantle as part of a full feasibility study. They are high interest electromagnetic anomalies with similar characteristics to the anomaly caused by the Lahtojoki pipe which has a drill-indicated diamond grade of approximately 35 carats per hundred tonnes.
The Company has identified a number of similar kimberlite targets elsewhere in the region where it has secured claims and is carrying out its own follow up work. Due to the exceptionally mild winter in central Finland insufficient ice cover developed to allow us to test a number of the more exciting drill-targets that we have identified beneath one of the large lakes in the area. These are now scheduled for testing next winter.
We are continuing our generative work elsewhere in Finland and overseas and hope to be in a position to deliver further news on new projects in future.
Results
The Group has now adopted International Financial Reporting Standards and is reporting a loss for the six month period of £99,891. (£97,598 for the six months to 31 March 2007). This loss comprises administration costs of £103,825, exploration costs (written-off) amounting to £9,747 and interest income of £13,583.
Patrick Cheetham
Executive Chairman
21 May 2008
For further information contact :
| Sunrise Diamonds plc | Tel: + 44 (0)1625 505947 |
| Sunrise House | Fax: + 44 (0)1625 626204 |
| Hulley Road | |
| Macclesfield | Website: www.sunrisediamonds.com |
| Cheshire SK10 2LP | |
| Ruegg & Co Limited | Tel: +44 (0)20 7584 3663 |
| Nominated Adviser | |
| Brett Miller/Roxane Marffy |
Consolidated Income Statement
for the six months to 31 March 2008
| Six months to 31 March 2008 Unaudited | Six months to 31 March 2007 Unaudited | Twelve months to 30 September 2007 Unaudited | |||
| £ | £ | £ | |||
| Exploration costs written off | 9,747 | 7,371 | 43,305 | ||
| Administrative expenses | 103,825 | 97,578 | 191,335 | ||
| Operating loss | (113,572) | (104,949) | (234,640) | ||
| Interest receivable | 13,583 | 7,351 | 18,961 | ||
| Loss on ordinary activities before taxation | (99,989) | (97,598) | (215,679) | ||
| Tax on loss on ordinary activities | - | - | - | ||
| Loss on ordinary activities after taxation | (99,989) | (97,598) | (215,679) | ||
| Minority Interests | 98 | - | 3,058 | ||
| Loss for the period | (99,891) | (97,598) | (212,621) | ||
| Loss per share - basic and fully diluted (pence) (note 3) |
(0.07) |
(0.09) |
(0.18) | ||
Balance Sheet
as at 31 March 2008
| As at 31 March 2008 Unaudited | As at 31 March 2007 Unaudited | As at 30 September 2007 Unaudited | |||
| £ | £ | £ | |||
| Non-current assets | |||||
| Intangible Assets | 1,148,807 | 788,989 | 986,355 | ||
| Current assets | |||||
| Receivables | 87,435 | 23,131 | 309,042 | ||
| Cash at bank and in hand | 316,769 | 664,195 | 455,930 | ||
| 404,204 | 687,326 | 764,972 | |||
| Payables : amounts falling due within one year | (96,816) | (79,529) | (206,019) | ||
| Net current assets | 307,388 | 607,797 | 558,953 | ||
| Net Assets | 1,456,195 | 1,396,786 | 1,545,308 | ||
| Equity | |||||
| Called up share capital | 139,222 | 124,905 | 138,867 | ||
| Share premium account | 1,965,580 | 1,707,939 | 1,959,723 | ||
| Other reserves | 36,577 | 81,785 | 82,636 | ||
| Profit and loss account | (682,035) | (517,843) | (632,867) | ||
| Total Equity | 1,459,344 | 1,396,786 | 1,548,359 | ||
| Equity Minority Interests | 3,149 | - | 3,051 | ||
| Total Capital Employed | 1,456,195 | 1,396,786 | 1,545,308 |
Consolidated Statement of Changes in Equity
for the six months to 31 March 2008
| | Six months to 31 March 2008 Unaudited | | Six months to 31 March 2007 Unaudited | | Twelve months to 30 September 2007 Unaudited |
| | £ | | £ | | £ |
| Opening Equity | 1,548,359 | | 964,372 | | 964,372 |
| | | | | | |
| Issue of ordinary shares | 6,212 | | 517,627 | | 783,373 |
| Share based payments | 4,664 | | 12,384 | | 13,235 |
| Profit and loss account | (99,891) | | (97,597) | | (212,621) |
| | | | | | |
| Closing Equity | 1,459,344 | | 1,396,786 | | 1,548,359 |
Consolidated Cash Flow Statement
for the six months to 31 March 2008
| Six months to 31 March 2008 Unaudited | Six months to 31 March 2007 Unaudited | Twelve months to 30 September 2007 Unaudited | |||||
| £ | £ | £ | |||||
| Operating Activities | |||||||
| Net cash outflow from operating activity (note 5) | (240,292) |
(88,791) |
(127,052) | ||||
| Net cash outflow from operating activity | (240,292) |
(88,791) |
(127,052) | ||||
| Investing Activities | |||||||
| Interest received (note 2) | 13,583 | 7,351 | 18,961 | ||||
| Purchase of Intangible fixed assets | (162,452) | (156,183) | (353,549) | ||||
| Net cash outflow from investing activity | (148,869) | (148,832) |
(334,588) | ||||
| Financing Activities | |||||||
| Issue of Share Capital (net of expenses) | 250,000 | 517,628 | 533,373 | ||||
| Issue of shares in subsidiary to minority interests | - | - | 7 | ||||
| Net cash inflow from financing activity | 250,000 | 517,628 | 533,380 | ||||
| Net (decrease)/increase in cash | (139,161) | 280,005 | 71,740 | ||||
Notes to the Interim Statement
Loss per share has been calculated on the attributable loss for the period and the weightedaverage number of shares in issue during the period.
| Six months to 31 March 2008 Unaudited £ | Six months to 31 March 2007 Unaudited £ | Twelve months to 30 September 2007 Unaudited £ | ||||
| Loss (£) | (99,891) | (97,598) | (212,621) | |||
| Weighted average shares in issue (No.) |
139,014,229 | 105,291,267 |
115,389,993 | |||
| Basic and fully diluted loss per share (pence) |
(0.07) |
(0.09) |
(0.18) | |||
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 IAS33.
On 15 January 2008, an issue of 354,994 ordinary shares of 0.1p each was made at 1.75p to two non-executive Directors for a total consideration of £6,212, in satisfaction of Directors Fees.
5. Reconciliation of operating loss to net cash outflow from operating activities
| Six months to 31 March 2008 Unaudited | Six months to 31 March 2007 Unaudited | Twelve months to 30 September 2007 Unaudited | ||||
| £ | £ | £ | ||||
| Operating loss | (113,572) | (104,949) | (234,340) | |||
| Non-cash movement in reserves | 10,876 | 12,384 | 13,235 | |||
| (Increase)/Decrease in receivables | (28,393) | 24,560 | (11,351) | |||
| (Decrease)/increase in payables | (109,203) | (20,786) | 105,704 | |||
| Net cash outflow from operating activities | (240,292) | (88,791) | (127,052) |
6. Interim report
Copies of this interim report will be sent to all shareholders and are available from Sunrise Diamonds plc, Sunrise House, Hulley Road, Macclesfield, Cheshire, SK10 2LP, United Kingdom. It is also available on the Company's website at www.sunrisediamonds.com