SVE.L Regulatory News (SVE)

30 Oct 2007 15:33

Starvest PLC30 October 2007 RNS announcement for release Tuesday 30 October 2007 Results for the year ended 30 September 2007 Chairman's statement I am pleased to present my sixth annual statement to Shareholders for the twelvemonth period ended 30 September 2007. Highlights Your Directors' chosen investment policy has generated exciting returns duringthe year to 30 September 2007. The headline results are: • a gross profit of £5.3m, • a profit before tax of £5.0m, • a profit after tax of £3.5m, • a 36% increase in the fully diluted net asset value per share, • the payment of a maiden dividend of one penny per share to be followed by a final dividend of 0.5 pence per share, making a total of 1.5 pence for the year, and • the buy-back of 2,050,000 of the Company's Ordinary shares for treasury at prices from 17 to 32 pence. As at 30 September, the Company had: • net assets with a balance sheet value of £5.2m, an increase of 98% during the year; • a net asset value of £15.1m consisting of trade investments at mid market valuation, cash less liabilities; • unrealised investment appreciation of £9.9m before tax. Company statistics 30 September 2007 30 September Change 2006 • Portfolio net asset value £15.1m £12.1m + 25% • Net asset value - basic per share 42.89p 31.18p + 37% • Net asset value - fully diluted per share 38.45p 28.29p + 36% • Share price 29.75p 17.00p + 75% • Discount to basic net asset value 44.17% 83.41% Unless otherwise stated, all net asset values are based on mid market prices orthe Directors' valuation, if lower. Review of business and current activities The highlight of the year must be the successful takeover of African Platinumplc (Afplats) by Impala Platinum Holdings Limited at 55 pence per share. Whilstthe Company sold a part of its holding in earlier periods and made two marketsales in the current year, the total proceeds during the year amounted to£5.49m. With a cost price of one penny per share, the result is excellent; notonly has it facilitated the payment of a special dividend, but provided welcomecash for investment in new opportunities and a share buy-back programme. Your Company now has 72% by value of its current investments in the naturalresource sector, a reduction from 78% a year ago. This reduction arises in partfrom the diversification following the Afplats sale and in part from continuedgrowth in Myhome International plc. The natural resource sector continues to be the Company's prime focus; yourBoard remains of the opinion that this sector shows no sign of anything otherthan exciting growth in the medium term with the worldwide demand for access tonatural resources continuing unabated. New opportunities are continuallypresented to us. As occurred during 2006, this year the net asset value peaked in June, this timeat 48 pence per share, since when declining sentiment has been a feature of themarket and therefore of share prices generally. Therefore, as occurred duringthe previous year, it is not surprising to find that the net asset value hasfallen a little from the peak. During the year your Company made seven new investments and increased itscommitment to seven existing investee companies. Of the new investments, fiveare mineral exploration ventures. Having added one further investment since theyear end, your Company now holds a spread of thirty-one active investments ofwhich sixteen are quoted on AIM, and ten are quoted on PLUS; one has suspendedits PLUS quotation pending further developments. In addition, one is expectingto be admitted to AIM and another to PLUS during the December quarter, one isquoted on and another is intending to join the Toronto exchange. Your Company has board representation on nine investee companies: Tony Scutt isa non executive director of Addworth plc, Agricola Resources plc, Beowulf Miningplc and of Oracle Coalfields plc. John Watkins is chairman of Lisungwe plc andof Franchise Investment Strategies plc and a non executive director of GreatlandGold plc, Red Rock Resources plc and of Regency Mines plc. The Company continues to seek opportunities to invest in small company newissues and to support pre-IPO opportunities so as to enhance shareholder valueand to make disposals as market conditions permit. Funding requirement Given the £5.49m proceeds from the disposal of the remaining interest inAfplats, coupled with bank and loan facilities, the Company has been able toexpand its spread of investments without the need to raise new finance andthereby dilute the existing shareholdings. Share buy-backs During 2006, the Company was able to clear the deficit on the profit and lossaccount and so move to a position where, for the first time, it was in aposition to pay a dividend and/or buy back its own shares for treasury. Thebuy-backs during the year totalled 2,050,000 shares which equates to 5.5% of theshares in issue. At the annual general meeting in December 2007, the Board will seek a renewal ofits authority to buy back up to 15% of its shares. Dividends In furtherance of our previously stated objective of paying a dividend, I ampleased that we were able to utilise the funds arising from the successfultakeover of Afplats and pay a first special dividend of one penny per share on20 June 2007. At the forthcoming annual general meeting, your Board will seek Shareholders'approval for the payment of a final dividend of 0.5 penny, making a total of 1.5pence for the year. The payment will be made on 11 January 2008 with a recorddate of 14 December 2007. Subject to conditions at the time, it is the present intention of the Board tomaintain a dividend in future years. Shareholder information We expect to make a net asset value statement immediately prior to the annualgeneral meeting. Thereafter, we expect to issue an interim statement during midApril and quarterly updates by mid January and mid July. During the year, the Company's shares were admitted to trading on PLUS, althoughAIM remains the prime market. Announcements made to the London Stock Exchange are sent to those who registerat the Company website, www.starvest.co.uk where historic reports andannouncements are also available. Outlook Given the increased spread of investments, the Directors look forward withoptimism to reporting increased asset values in the year ahead. Annual general meeting As indicated on page 31, we plan to hold our annual general meeting on Wednesday12 December when we look forward to meeting those Shareholders able to attend. R Bruce RowanChairman & Chief Executive 29 October 2007Telephone: 020 7486 3997 Review of portfolio The Starvest portfolio value has increased dramatically over the past five yearswith a 24% increase in the last year: At 30 September 2007, the portfoliocomprised investments in the following companies: Addworth plc - (AIM ticker: ADW) Website: www.addworth.co.uk Addworth is an active capital investment company specialising in financing,promoting and launching early-stage entrepreneurially-managed companies, seekingeventual admission to the AIM or PLUS markets. Addworth provides strategicconsultancy services for their further development while retaining key equityinterests and thereby establishing its own investment portfolio. Successfulintroductions in the past year notably include Branded Entertainment plc, GamingVentures plc, Oil and Gas Support Services plc, and Uranium Prospects plc. Workcontinues on promoting a number of further new flotations in an expanding rangeof market sectors in the coming year. Agricola Resources plc - (PLUS ticker: AGRI) Website: www.agricolaresources.com Agricola Resources is continuing its exploration for uranium in both Finland andSweden, and has extended its work programme through a joint venture in Swedenwith Beowulf Mining plc on the latter's Ballek four copper-gold-uraniumexploration permits. In May Agricola placed a 29.9% strategic stake in itsenlarged share capital with the Australian Energy Ventures Limited, enabling itto accelerate and broaden its exploration programme with the application of theresultant funds. Ariana Resources plc - (AIM ticker: AAU) Website: www.arianaresources.com Ariana Resources focuses on exploring for, acquiring and developing economicgold deposits in Turkey, concentrating on the Tethyan metallogenic belt, whichis believed to have the potential to host a multi-million ounce world-classdeposit. The company portfolio extends over 1,820 sq km under 114 explorationpermits across Turkey, as a result of its active acquisition policy, with itsflagship asset in western Turkey being the 235 sq km Sindirgi project, coveringsome 45 sq km of gold-silver bearing quartz alone. Its on-going drillingprogramme is being expanded as a result of a recent share placement which couldlead to its current JORC gold resource reaching its baseline target of 250,000oz. Belmore Resources (Holdings) plc - (PLUS ticker: BEL) Website: www.belmoreresources.com Belmore Resources is a minerals exploration company focusing on projects in theRepublic of Ireland and Northern Ireland, priority being given to its zincexploration properties in County Clare. Here it has a 50% interest in sixprospecting licences covering 267 sq km and a 100% interest in two prospectinglicences covering 86 sq km. Previous exploration had identified a high graderesource of zinc and lead-rich massive sulphides of approximately 400,000 tonnesat 12% zinc plus lead and 75 g/t silver. Further 100% interest blocks are heldin Donegal and Dromore, Northern Ireland. Beowulf Mining plc - (AIM ticker: BEM) Website: www.beowulfmining.com Beowulf's focus is on the exploration and development of mineral deposits inNorthern Sweden where its more recent activities have been focused on itsRuoutevare iron titanium deposit, its Grundtrask gold deposit, and its Ballekcopper, gold and uranium prospect. Ruoutevare has a non-JORC compliant resourceof 116 million tonnes, grading 38.2% iron, 5.6% titanium dioxide, and 0.17%vanadium oxide. Detailed geological mapping has suggested that the ore reservescould be increased significantly by the extra diamond drilling now beingundertaken so as to make them JORC-compliant. The project scoping study isexpected to be completed in 2008. The drilling programme completed in early 2007 in Grundtrask returned goldgrades of up to 5.2m at 4.28 g/t from the Southern gold structure; Beowulf areseeking a joint venture partner to continue exploration and development. Meanwhile for Ballek, an earn-in agreement with Agricola Resources plc has beenconcluded whereby the latter was granted the option to acquire a 51% interest byundertaking a specific programme of survey and diamond drilling work by the endof 2008, with this interest to be increased to 70% in the event of furtherspecific project expenditures. Black Rock Oil & Gas plc - (AIM ticker: BLR) Website: www.blackrockoilandgasplc.co.uk Black Rock Oil & Gas is an exploration and production company with licences inonshore Colombia, and in the Southern Gas Basin of the UK North Sea. InColombia it is in a 50/50 joint venture with operator Kappa Resources in the LasQuinchas Association Contract and the Alhucema E & P Contract, both situated inthe prolific hydrocarbon basin of the Middle Magdalena Valley. For LasQuinchas, following completion of its farm-in obligations, its 50% interest issubject to the approval of Ecopetrol, the state oil company. This blockcontains the Arce and Baul heavy oilfields and a number of exploration prospectsincluding the Acacia Este oil discovery: The Arce oilfield is currentlyundergoing a steam injection test to determine commerciality and developmentoptions. Black Rock made a placement of new shares in June to raise additionalworking capital and to cover the costs of an appraisal well on the Acacia Estediscovery and an exploration well for the Alhucema area planned for late 2007and early 2008. In the UK, Black Rock has a 15% interest in two adjacent NorthSea blocks, one of which contains the Monterey Gas discovery and the Stinson andWinchester prospects; the joint venture has under application a four yearextension to the licence with the aim of improving the marginal economics of theMonterey discovery, although a 50% relinquishment would be applied if thelicence extension is approved. Brazilian Diamonds Limited - (AIM ticker: BDY) Website: www.braziliandiamonds.com Brazilian Diamonds is a leading Brazil-based exploration company focused on thediscovery of kimberlites in its 100% owned properties in the States of MinasGerais and Bahia. Its diamond exploration databases were largely acquired fromDe Beers. The Company now awaits final approval before seeking local Stateenvironmental authorisation for the development of the Canastra 1 kimberlite,for which mine feasibility work has been completed and Mines Department approvalgranted. Mines Department and Bahia State environmental licences have alreadybeen obtained to start planned bulk testing on the Salvador 1 kimberlite;excavation work of trenches to collect large samples for further assessment ofits diamond potential are expected to yield first results before the 2007year-end. The company strategy for non-core activities on its properties is toform joint ventures. A feasibility study is also currently underway for a jointventure to mine alluvial diamonds on its San Antonio river drainage properties. Carpathian Resources Limited - (AIM ticker: CPNR and Sydney ASXticker: CPN) Website: www.carpathian.com.au Carpathian Resources is an Australian oil and gas explorer and producer focusingon projects in the Czech Republic. Its main producing asset is its 60% interestin the Janovice gas field in Northern Moravia with the adjacent marginal Krasnaoil field where the current 75% interest reduces to 50% after pay-out.Janovice produces 1.2 million cubic feet of gas a day, and from latestproduction testing, shows up to 4 billion cubic feet in place. Exploration activities cover the 90% interest Mosnov, Roznov, and Morava permitsand the 60% interest Raskovice - Moravka permit. The Morava project is locatedin the northern part of the Vienna Basin, an area of prolific oil and gasproduction, and while oil is the principal target with a 5 million barrelpotential, gas is also seen as a possibility. The company is evaluating theacquisition of other interests in Russian, European, Middle Eastern, andKazakhstan oil and gas fields and infrastructure to broaden its growth strategy. Concorde Oil and Gas plc Website: www.concordeoilandgas.com Concorde Oil & Gas was incorporated in August 2005 to locate, evaluate, acquire,explore, develop, and operate oil and gas properties and projects primarily inthe Russian Federation. The company experienced difficulties in 2006 in raisingsufficient finance for its first major acquisition target, Pechora Energy whichholds an exclusive production licence valid until 2014 for the Luzkoye oil fieldin the Komi Republic of Russia. Following the agreement of a financing packagewith Altima Partners LLP, an offer to acquire Pechora for US$33 million wasaccepted. Subsequently, Altima injected U$41 million in exchange for the issueof 113 million new Concorde shares valued at 0.9p a share, the value now used byStarvest. Existing shareholders have faced a substantial dilution of their original stake,but now have an investment in a much larger company as a result of therestructuring, since when the Kuwait Energy Company has acquired part of theAltima stake and now holds one third of the equity. Kuwait Energy appointeeshave assumed the chairmanship and two non-executive directorships of thecompany. Concorde's listing was suspended in November 2006 and withdrawn from PLUS inOctober 2007. The company has deferred its intention to seek an alternativelisting until late 2008, by which time further expansion and development plansin Russia already under consideration should have been concluded, promisingdrilling results released, new oil reserve figures officially ratified,production expected to reach 8,000 barrels/day, and any further funding needs bythen secured. The Core Business plc - (AIM ticker: CORE) Website: www.thecorebusiness.co.uk The Core Business seeks to create, develop, launch and distribute personal careproducts from make-up and skin care to men's grooming and hair care. As apersonal care and beauty management group, it assists companies and individualsin leveraging, diversifying, and creating brands in the global beauty sector,and helps in the developing of existing brands and the creating of new ones. Itcontinues to attract considerable retailer interest through dynamic presentationof its brands and consultancy services. DTT plc - (PLUS ticker: DTT) Website: www.drivertransporttraining.co.uk DTT is the UK's largest and fastest growing group of companies specialising inthe training of commercial drivers. Operating through a network of 11 regionaltraining centres, practical and theoretical courses are offered leading tolicences and qualifications with some 5,500 drivers being trained each yearfollowed by support into employment through its recruitment services offeringtemporary or permanent staff employment through its Driver Supply brand. Underthe company's strategic plan, growth by acquisitions is expected over the nexttwo years to enable DTT to be in a position to capitalise on the advent of theEuropean Training Directive and the business opportunities that this willcreate. The recent acquisition of ODK for a mixture of cash and DTT shares isthe first step in this plan. DTT sees growth being achieved by establishingfurther new branch operations or developing new partnerships through DTTfranchising arrangements. Franchise Investment Strategies plc: (PLUS ticker: FIN) Franchise Investment Strategies was originally created as a holding company forthe development of franchising operations in diverse sectors of the UK, with aview to applying the franchise model that had been so successfully developed byMyhome International, and by supporting particularly strong franchise businessesin subscribing for key equity stakes if they were ultimately to be launched asquoted companies. However, the lack of experienced managers specialising infranchise operations has severely restricted the development of this business,which currently serves as an investment holding company with interests held inMyhome International and DTT only. Franconia Minerals Corporation - (Toronto ticker: TSX-V) Website: www.franconiaminerals.com Franconia Minerals, an Alberta-formed corporation, is focused on the explorationand development of Platinum Group Metals (PGM) and Base Metals in thecontinental United States, with its corporate head office in Spokane,Washington. Its most advanced project is the Birch Lake Platinum-Palladium-Copper-Nickel project located in the Duluth Complex in north eastern Minnesota.The project includes two inferred PGM resources, the 100 million tonnes BirchLake resource and the 120 million tonnes Maturi resource. The company is alsoactively exploring for base metals at its Red Knoll copper property in Arizona.Franconia has exploration agreements with Teck Cominco American Inc. to advancezinc and copper projects in the western United States. Fundy Minerals Limited -(PLUS ticker: FUND) Website: www.fundyminerals.com Fundy Minerals, with head office in New Brunswick, Canada, is actively involvedin the exploration of gold, diamond and base metals in Canada and Africa. Ithas a 100% interest in eight mineral exploration and development properties inNew Brunswick, two of which have gold deposits, one a deposit model, and threereflect base metal deposits. Also, it has a high-grade limestone deposit, withproduction expected by December 2007. In West Africa, Fundy holds a permit over2,000 sq km of Liberia, where it has confirmed that a significant quantity ofgem quality alluvial diamonds has been extracted. Its initial interest inLiberia was in possible gold mineralisation, but its alluvial diamond discoveryin the southern area of its permit led to its efforts being concentrated onlocating the Kimberlitic source of these diamonds. The company has expressedits intention to move from trading on PLUS to a more senior exchange. Gippsland Limited - (AIM ticker: GIP and Sydney ASX ticker: GIP) Website: www.gippslandltd.com.au Gippsland is an Australian-based international resource company with its primeassets being tantalum-tin projects in the Central Eastern desert of Egyptadjacent to the Red Sea, and notably include the 40 million tonne Abu Dabbab andthe 98 million tonne Nuweibi projects, where its 50% interest is matched by anEgyptian State partner. The recently completed Abu Dabbab feasibility study,based on an annual mill-feed rate of 2 million tonnes for a production level inexcess of 650,000 lbs of tantalum pentoxide, will rank Gippsland as the world'ssecond largest producer. Current spot market prices for tantalum pentoxide areapproaching US$ 50 per lb. However, several years of production has beenalready pre-sold. In addition, Gippsland has been undertaking explorationdrilling within the Wadi Allaqi region and has obtained highly encouraging goldresults in three separate tenements. Goliath Resources Inc - (Pink sheets: GHRI) Website: www.goliathresources.com Goliath Resources is a Vancouver-based minerals exploration company withinterests in copper, gold and molybdenum in Canada and Zambia. It acquiredthree mineral projects in Canada from the BellMin Group in late 2006, the mainfocus being on the Phelps Dodge-owned Mazenod Lake in the North-West Territorieswhere, under a joint venture agreement, Goliath will ultimately earn a 75%interest. Previous drilling and geophysics had identified project areas ofmineralisation prospective for large-scale copper, gold and possibly uranium.The second project is the Flume Licence in the Yukon, again owned by PhelpsDodge, in which Goliath has the right to earn a 100% interest under earn-inexpenditure commitments; large areas of this project are as yet unexplored, butearlier geochemical studies indicated a high potential for gold mineralisation.The third project is the Java property in British Columbia, a copper-molybdenumporphyry prospect formerly owned by Kennecott. The Zambia project involves aGoliath-led consortium which has been issued a 25 year mining licence coveringmain tailing dumps exceeding 100 million tons in the Zambian Copper Belt; theirtreatment is seen by management to have substantial near-term cash-flowpotential. Greatland Gold plc - (AIM ticker: GGP) Website: www.greatlandgold.com Greatland Gold has gold projects covering a total area of some 300 sq km inTasmania, consisting of the Firetower project in the north with an initialinferred JORC-compliant resource of 90,000 oz. of gold, and three historic goldfields, Warrentinna, Forrester and Waterhouse, which were mined some 100 yearsago and had produced a substantial amount of high grade gold at surface. Inaddition to these Tasmanian interests, the company has the Lackman Rock projectin Western Australia where gold and nickel sulphide have already been ear-markedas targets for future exploration drilling. The main focus of the company untilnow has been on Firetower, and on deciding whether to mine an existing resourceof some 50,000 oz, or whether to establish first a larger resource and then tobuild its own mine. However recent rock chip sampling at Warrentinna has alsoyielded very encouraging results, and calls for further exploration effort to beundertaken on seeking new high-grade shoots beneath the historic workings and inun-mined quartz-lodes. The future therefore holds useful promise.Guild Acquisitions plc - (PLUS ticker: GACQ) Guild Acquisitions is a fledgling investment trading company established to growearly-stage small to medium sized companies by injecting seed capital,management support, and access to further funds from capital markets for theirdevelopment. Hidefield Gold plc - (AIM ticker: HIF) Website: www.hidefieldgold.com Hidefield is a gold company focusing on the acquisition and development ofhighly prospective projects in North and South America. The company has adiverse portfolio of projects. In South America and Alaska the projects aredirectly held by Hidefield, while those projects in Canada, Nevada and Arizonaare held in independent self-funded associate companies. The company's substantial direct gold project interests are principally inArgentina where it is actively exploring the advanced stage East Santa Cruz goldproject in Santa Cruz Province. Hidefield also operates in joint venture with Minera Sud Argentina S.A. withwhich it is currently exploring a number of gold exploration licences in threePatagonian provinces. In Brazil the company is focused on the evaluation of theadvanced stage Cata Preta gold project in Minas Gerais state. In AlaskaHidefield has a 60% interest in the Golden Zone and South Estelle mineralprojects and an option to earn up to 100% subject to its expenditures. TheGolden Zone property has a measured and indicated resource of 253,000 oz ofgold, 1.2 million oz of silver, and 6.1 million pounds of copper. The SouthEstelle property is in joint venture with International Tower Hill Mines. India Star Energy plc - (AIM ticker: INDY) Website: www.indiastarenergy.co.uk India Star Energy is an investment company focused on gold, platinum groupmetals and uranium interests in Canada. Investments include a 15% stake inCanadian Golden Dragon with interests in two high grade platinum and palladiumproperties in Ontario; an interest in Canadian explorer East West ResourceCorporation with a portfolio of early stage properties for platinum, palladium,gold and base metals, a copper-molybdenum deposit in Thunder Bay, and a 50%share in the Magotte joint venture with East West Resource, targeting uranium. KEFI Minerals plc - ( AIM ticker : KEFI ) Website: www.kefi-minerals.com Kefi Minerals is an early stage gold and copper exploration company with four100%-owned projects in Turkey and one in Bulgaria. It owns an extensiveexploration database which contains information regarding some one hundredfurther prospective sites in Turkey, where recent changes to the mining law andthe progressive development attitude of the Turkish Government have generated apositive environment for exploration and mining companies. Kefi has recentlyannounced a gold discovery at its Yanikli Prospect in the Artvin project innorth eastern Turkey, with geological mapping and geochemical data alreadyhaving defined 15 new targets in the same project area. The Bulgarian interestis focused on the Lehovo project area, located 150 km south of Sofia andbordering Greece, where Kefi has met with encouraging results for gold andsilver from its initial rock chip sampling work. Bulgaria has a long traditionof mining for base metals and precious metals and currently has a number ofoperating mines; the growing benefits of the change-over from a state to amarket economy form an increasingly attractive background to the local miningsector. Lotus Resources plc - (Expected to be admitted to PLUS) Website: www.lotus-resources.com Lotus Resources is focused on China where it is assembling a portfolio of miningand exploration interests that have the potential to generate early cash flowfrom production and where it can add value through the application of modernWestern techniques thus improving productivity. The initial focus is on anumber of gold projects. The company has a mixed Board of Chinese and Britishexecutives and a team of experienced Chinese geologists. The company expects tobe admitted to PLUS during the fourth quarter 2007 and to move to AIM during2008. Matisse Holdings plc - (AIM ticker: MAT - suspended) Matisse Holdings was originally established to invest in publishing businesses.It has been seeking either reverse takeovers or key acquisitions, but presentlyhas its shares suspended through the application of AIM regulations governinginactive cash shells. Myhome International plc - (PLUS ticker: MYH) Website: www.myhomeplc.com Myhome International is a leading residential homecare services franchisebusiness continuing to enjoy an impressive rate of expansion throughout the UK,Ireland and, more recently, Australia The past year has seen a further extension of the range of branded servicesoffered to its clients through its very successful franchising model, which isbeing rapidly rolled out across the whole of the UK. In addition to homecleaning and garden maintenance, its range of services now include fabriccleaning (Stainbusters), ironing and dry cleaning (Ferrum), and plumbing anddrainage (DSH Services), all services appealing to "cash rich, time poor"clients, encouraging significant cross-selling opportunities, and attractingserious reliable entrepreneurs as franchisees, who now total over 400 in number.There is clear potential for Myhome's model to be applied more widely throughoverseas expansion and joint ventures with, say, insurers and financial servicescompanies. Myhome is well down the path to becoming a multi-branded,multi-product international residential franchise operation. The acquisition ofChipsaway was announced in October 2007 which, subject to shareholder approval,will increase the number of franchisees to 750. Oracle Coalfields plc - (PLUS ticker: ORCP ) Website: www.oraclecoalfields.com Oracle Coalfields operates as an explorer and developer of coal in the SindhProvince of Pakistan. In February 2007, an exploration licence was granted overa 100 sq km area of the Indus East coalfield and after the company's successfulintroduction to PLUS in August, a programme of exploration drilling to establishthe best location of the envisaged mine site is being undertaken from Octoberonwards, with the exploration licence then expected to be converted to a mininglease. Plans for the financing and construction of the coal mine and thecommencement of production will follow. Oracle has entered into a joint ventureagreement (Oracle 80% interest) with Sindh Koela Limited, a local Pakistanicompany, which will work with Oracle to achieve these objectives as well asassuming the role of establishing one or more mine-mouth power plants. Pakistanhas a major, yet largely untapped, coal resource of 185 billion tonnes (IndusEast 1.8 billion tonnes), along with a serious shortage of electricity that ishindering its planned economic growth, so the role of Oracle Coalfields shouldassume increasing importance as its project nears fruition. Oracle recognisesits major ethical responsibility of ensuring that any coal-fired powergenerating plant with which it is associated, conforms to international emissionstandards. Red Rock Resources plc - (AIM ticker: RRR) Website: www.rrrplc.com Red Rock, in which Regency Mines holds a 43.5% interest, operates as a mineralexploration and development company focusing on manganese, iron ore and gold andhopes to move to early bulk production and sales of manganese from its highgrade Zambian resource. Two of its high grade iron ore properties in WesternAustralia have been farmed out in an option/royalty agreement with JupiterMines, although its nearby Mt Alfred property has been retained. It also hastenements in the Northern Territory of Australia containing further iron oremineralisation and manganese targets. It has recently disposed of its Australian and Malawi uranium interests toRetail Star Limited (ASX: RSL) for shares equivalent to 15.6% of Retail Starwith options to increase which suggests a readiness to exchange assets forequity interests at the right price. Its wide portfolio suggests that it iswell placed to benefit from rising commodity prices. Regency Mines plc - (AIM ticker: RGM) Website: www.regency-mines.com Regency Mines, apart from its interest in Red Rock Resources, is focused onexploring areas of copper and nickel potential in Western Australia andQueensland and, where appropriate, on the development of these assets by jointventure, acquisition or disposal. The company broadened its portfolio in 2006with the acquisition of a 75% interest in the 140 sq km Mambare open pit nickeland cobalt project in Papua New Guinea where the aim is to offer direct shippingof ore production to Asian Pacific rim customers within the next two years.Regency has assembled a sound investment portfolio including equity interests insmall mining companies, evidencing its well executed strategy of convertinglicence interests into equity stakes. Sheba Exploration (UK) plc - (PLUS ticker: SHE) Website: www.shebagold.com Sheba is a mineral exploration company operating in the Tigray State of Ethiopiawithin the Northern Ethiopia gold fields area, which it chose for its numerousgold occurrences, most of which have not been explored. Sheba holds a 100%interest in the two exclusive exploration licences for Mereto and Shehagne, andhas new projects under current licence application. At Mereto, trenches at theAdi Gefa prospect have returned gold intersections of 8m at 2.3g/t and 6m at 3.7g/t, directly beneath the soil anomaly, while soil sampling on the flanks of thelicence area located a further extension of the soil anomaly up to 690 ppb gold. The trenching here has indicated at least five drill-ready targets, with morein the pipeline, and the style of gold mineralisation is seen to enforce thepotential for low cost bulk mining. Joint venturing of mature properties, toraise capital for resource estimation and new property acquisitions, and theinitiation of feasibility studies of small-scale opportunities for mining gold,remain the strategic objectives for this operation. St Helen's Capital plc - (PLUS ticker: SHCP) Website: www.sthelenscapital.co.uk St Helen's Capital is a fully integrated corporate financial services firm witha fast-growing list of clients formed by start-up, early-stage, and fast-growingcompanies. Its services on offer include fund-raising, financial services,investment recommendations, leasing, mergers and acquisitions, and businessservice advice. It sees itself as a one-stop shop for growth, and as a reliableexperienced corporate adviser. It has thus established itself as a majorconduit for fledgling companies seeking to access the AIM and PLUS markets. Sunrise Diamonds plc - ( AIM ticker : SDS ) Website: www.sunrisediamonds.com Sunrise Diamonds is focused on the identification, acquisition, exploration, anddevelopment of diamond projects in its present Finland operations in theKarelian Craton, a prospective block which, over the border in Russia, hostsworld-class diamond deposits. Sunrise's planned drilling operations this summerhave been held back somewhat by the current global shortage of drilling serviceproviders which with the larger number of explorers operating today inScandinavia, caused tightened drill rig availability. As a result, Sunrise wasnot able to complete all its drilling plans, and had to concentrate instead ongathering and analyzing more geophysical data. Sunrise enjoys exclusive accessto the valuable BHP Billiton database from its former Finnish diamondexploration activities, which has resulted in Sunrise now having a surplus ofdrilling targets on hand, so that the rig slots that it has been able to bookfor the coming year should ensure faster progress and more regular news flow. Treslow Limited - (Expecting to be admitted to AIM) Treslow has a copper-nickel prospect near Armstrong in north-west Ontario,Canada. Following its conversion to a plc and expected introduction to AIM, itwill be seeking further funding to advance the project. Drilling is expected tobe started in January 2008. Commercial quantities of uranium and rare earthsare also a possibility, but the initial focus is on nickel. Profit and loss accountfor the year ended 30 September 2007 Year ended 30 14 month September period ended 2007 30 September 2006 £ Operating income 5,494,067 1,699,430Direct costs (177,924) (97,613)Gross profit 5,316,143 1,601,817Administrative expenses (272,076) (266,683)Operating profit 5,044,067 1,335,134Interest receivable 71,114 7,728Interest payable (84,413) (4,334)Profit on ordinary activities before taxation 5,030,768 1,338,528Tax on profit on ordinary activities (1,505,236) (400,000)Profit on ordinary activities after taxation 3,525,532 938,528 Earnings per share - basic 9.6 pence 2.5 pence Earnings per share - fully diluted 8.8 pence 2.4 pence There are no recognised gains and losses in either period other than the profitfor the period. All operations are continuing. Balance sheetAs at 30 September 2007 30 September 2007 30 September 2006 £ £ £ £Fixed assets Investments - 2Current assets Debtors 10,257 107,902 Trade investments 4,750,185 3,082,898 Cash at bank 3,006,588 - 7,767,030 3,190,800Creditors - amounts due within (2,548,969) (553,369)one yearNet current assets 5,218,061 2,637,431Total assets less current 5,218,061 2,637,433liabilities Share capital and reserves Called-up share capital 372,173 372,173 Share premium account 2,026,396 2,026,396Profit and loss account 2,819,492 238,864 Equity shareholders' funds 5,218,061 2,637,433 Cash flow statementfor the year ended 30 September 2007 Year ended Period ended 30 September 30 September 2007 2006 £ £ Net cash inflow/(outflow) from 3,484,305 (234,249)operating activitiesReturns on investment and servicingof finance:Interest receivable 71,114 7,728Interest payable (84,413) (4,334) (13,299) 3,394Taxation paid (395,880) (86,472)Equity dividends paid (367,172) -Financing:Company shares repurchased (577,732) -New short term loan 1,000,000 - 422,268 -Increase/(decrease) in cash in the 3,130,222 (317,327)year The financial information set out above does not constitute statutory accountsas defined in section 240 of the Companies Act 1985. The balance sheet at 30 September 2007, the profit and loss account, and thecash flow statement for the year then ended have been extracted from theCompany's statutory financial statements upon which the auditor's opinion isunqualified and does not include any statement under Section 237 of theCompanies Act 1985. Copies of the report and financial statements will be posted to Shareholders nolater than 14 November and will be available for a period of one monththereafter from the Company Secretary at the registered office. 123 Goldsworth Road, Woking, Surrey, GU21 6LRemail: email@starvest.co.uk Alternatively, the report may be downloaded from the Company's website,www.starvest.co.uk. Enquiries to: • Bruce Rowan, telephone 020 7486 3997 • John Watkins, telephone 01483 771992, or to john@starvest.co.uk • Gerry Beaney or Colin Aaronson, Grant Thornton Corporate Finance, telephone 020 7383 5100 END This information is provided by RNS The company news service from the London Stock Exchange