Sunrise Res Regulatory News (SRES)

18 May 2006 08:00

Sunrise Diamonds PLC18 May 2006 SUNRISE DIAMONDS PLC Interim Statementfor the six months ended 31 March 2006 Chairman's Statement I am pleased to report the Company's progress and interim results for thesix-month period to 31st March 2006. Review of Activities The Company is exploring for diamonds in Finland in the Karelian Craton, aprospective geological block which, over the border in Russia, hosts world-classdiamond deposits in the Arkhangelsk region including the rich Grib pipe and themulti-pipe Lomonosov complex currently being developed by Alrosa. Since the publication of our first annual report in December 2005, we havereported considerable further progress and success including the discovery oftwo additional kimberlites in the new Kuusamo cluster, bringing the total so fardiscovered to seven, and the recovery of micro-diamonds from the Anomaly 45 andKattaisenvaara kimberlites. The results of micro-diamond analysis for samplesfrom the latest kimberlite discovery, the "Lampi" kimberlite, are still awaited.The Company is now undertaking a rigorous technical evaluation of the Kuusamokimberlites to determine their potential for commercial diamond content which,if indicated, would need to be confirmed with larger scale sampling programmes. Whilst drilling and other field activities have focused in Kuusamo in northernFinland, new targets have been acquired throughout Finland. In particular, thishas capitalised on the data contained in BHP Billiton's Finland diamondexploration database where exclusive rights were secured by the Company lastDecember. The database has an estimated replacement value of over $10 millionand includes results from over 18,000 geochemical samples as well as a largearchive of geophysical data. So far, over 20 target areas have been selected from the BHP Billiton databaseand are now secured with over 600 sq. km. of claims and claim reservationapplications. These targets are defined by probable kimberlite dispersion trainshaving no obvious relationship to known kimberlites. The majority of new targetsare in the more established Kaavi-Kuopio kimberlite region of south-centralFinland where 20 kimberlite pipes are already known from previous exploration,the majority of which are diamondiferous. One of these, the Lahtojoki pipe, iscurrently being bulk sampled by European Diamonds plc which has predicted agrade in excess of 40 carats per hundred tonnes. The Company is considering further project acquisition opportunities in Finlandand throughout the reporting period has continued to evaluate diamondexploration opportunities worldwide. I am also pleased to be able to announce today the appointment of Ruegg & CoLimited as broker to the Company. Ruegg & Co, which is already our NominatedAdvisor, is an independent corporate finance house established in 1992 and hasadvised on a wide range of both domestic and international corporate financetransactions. Results The loss for the six-month period was £97,053. This loss comprisesadministration costs of £93,880, exploration costs (written-off) amounting to£9,535 and interest income of £6,362. Patrick L Cheetham 18 May 2006 Executive Chairman For further information contact : Sunrise Diamonds plc Tel: + 44 (0)1625 505947Sunrise House Fax: + 44 (0)1625 626204Hulley RoadMacclesfield Website: www.sunrisediamonds.comCheshire SK10 2LP Profit and Loss Account for the six months to 31 March 2006 Six months to Period ended 30 September 31 March 2006 2005 Unaudited £ £ ---------- ---------Exploration costs written off 9,535 39,942 Administrative expenses 93,880 206,825 ---------- ---------Operating loss (103,415) (246,767) Interest receivable 6,362 7,675 ---------- ---------Loss on ordinary activities beforetaxation (97,053) (239,092) Tax on profit on ordinary activities - - ---------- --------- Loss for the period (97,053) (239,092) ---------- --------- Loss per share - basic (pence)(note 2) (0.12) (0.45) ---------- --------- All amounts relate to continuing activities. Balance Sheet as at 31 March 2006 As at 31 March As at 2006 30 September Unaudited 2005 £ £ ---------- --------- Fixed assets Intangible Assets 465,721 241,276 Current assetsDebtors 62,207 50,008Cash at bank and in hand 492,541 389,825 ---------- --------- 554,748 439,833 ---------- --------- Creditors: amounts falling due within one year 125,724 87,311 ---------- --------- Net current assets 429,024 352,522 ---------- --------- Creditors: amounts falling due after more than one - -year ---------- --------- Total assets less current liabilities 894,745 593,798 ---------- --------- Capital and reserves Called up share capital 93,153 75,375 Share premium account 1,137,737 757,515 Profit and loss account (336,145) (239,092) ---------- --------- Shareholders' funds 894,745 593,798 ---------- --------- Cash Flow Statement for the six months to 31 March 2006 Six months to 31 March 2006 Unaudited Period ended 30 September 2005 £ £ ---------- --------- Net cashoutflow fromoperatingactivities(note 3) (77,201) (209,464) Returns oninvestmentsand servicingof finance 6,362 7,675 Capitalexpenditureand financialinvestment (224,445) (241,276) ---------- --------- Net cashoutflow beforefinancing (295,284) (443,065) Financing -issue of sharecapital (netof expenses) 398,000 832,890 ---------- --------- Increase incash in theperiod (note4) 102,716 389,825 ---------- --------- Notes to the Interim Statement 1. Basis of preparation The interim statement has been prepared on the basis of the accounting policiesset out in the Company's financial statements for the period ended 30 September2005. The financial information set out in this statement relating to the periodended 30 September 2005 does not constitute statutory accounts for that period.Full audited accounts in respect of that financial period (which received anunqualified audit opinion and did not contain a statement under Section 237(2)or (3) of the Companies Act 1985) have been delivered to the Registrar ofCompanies. The Directors are satisfied that the Company has adequate resources to continueto operate for the foreseeable future. For this reason they continue to adoptthe "going concern" basis for preparing the accounts. The interim report hasbeen approved by the Directors and is unaudited. Comparative figures for the six months ended 31 March 2005 are not included asthe Company was only formed in February 2006. 2. Loss per share Loss per share has been calculated on the attributable loss for the period andthe weighted average number of shares in issue during the period. Six months to 31 March 2006 Period ended 30 September Unaudited 2005 ---------- --------- Loss (£) (97,053) (239,092) Weighted averageshares in issue(No.) 79,672,924 52,658,844 Basic loss per share(pence) (0.12) (0.45) ---------- --------- The loss attributable to ordinary shareholders and weighted average number ofordinary shares for the purpose of calculating the diluted earnings per shareare identical to those used for the basic earnings per ordinary share. This isbecause the exercise of share warrants would have the effect of reducing theloss per ordinary share and is therefore not dilutive under the terms of FRS 14. 3. Reconciliation of operating loss to net cash outflow from operatingactivities Six months to 31 March Period ended 30 September 2006 Unaudited 2005 £ £ ---------- --------- Operating loss (103,415) (246,767) Depreciation - -Increase in debtors (12,199) (50,008)Increase in creditors 38,413 87,311 ---------- --------- Net cash outflow fromoperating activities (77,201) (209,464) ---------- --------- 4. Reconciliation of cash flow to movement in net funds Six months to 31 March 2006 Unaudited Period ended 30 September 2005 £ £ ---------- ---------Increase incash in theperiod 102,716 389,825Opening net funds 389,825 - ---------- --------- Closing net funds 492,541 389,825 ---------- --------- 5. Related party transactions The Company is an associated undertaking of Tertiary Minerals plc which holds24.58% of the issued ordinary share capital at the balance sheet date. 6. Interim report Copies of this interim report will be sent to all shareholders and are availablefrom Sunrise Diamonds plc, Sunrise House, Hulley Road, Macclesfield, Cheshire,SK10 2LP, United Kingdom. This information is provided by RNS The company news service from the London Stock Exchange