Last checked at 30 Sep 2011 07:00
THOR MINING PLC
Final Results for the period ended 30 June 2011
Dated: 30 September 2011
Thor Mining PLC ("Thor" or the "Company") (AIM, ASX: THR) the resources company focused on gold projects in Western Australia, base metals projects and advancing tungsten-molybdenum projects in the Northern Territory of Australia, announces its final results for the period ended 30 June 2011.
REVIEW OF OPERATIONS
The net result of operations for the year was a loss of £2,852,000 (2009: £1,762,000).
Molyhil Molybdenum/Tungsten project
During the year ended 30 June 2011, the price of tungsten rallied strongly providing encouragement for medium term development of the Molyhil project, while the price of molybdenum remained relatively static.
A drilling program conducted during 2009, included, amongst other tests, 2 holes testing for potentially economic mineralisation below 150 metres. Encouraged by this the Company committed to a further drilling program to to test Molyhil further at depth, in an effort to demonstrate the potential for significant increase in the size of the resource.
At the time of writing, that drilling program was complete with assays awaited.
In addition Thor has committed to a new feasibility study to re-assess the economic outcomes of production at Molyhil. That study is in progress at the time of writing.
Exploration projects
Gold Exploration - Spring Hill NT
In January 2011, Thor announced that it had agreed terms for the staged acquisition of up to an 80% interest in the 274,000oz Spring Hill Gold Project approximately 150 kilometres south of Darwin in the Northern Territory. Subsequently, the Company has completed the first stage of that acquisition and now holds a 25% interest in the project. The first Thor drilling program for this resource commenced on Tuesday 27 September 2011.
Gold exploration - Dundas WA
During the year, the consolidated entity increased its equity in the Dundas Gold project to 60% following shareholder approval for the acquisition
Subsequent to this, assays from a calcrete sampling program on EL 63/872 and EL 63/1102 revealed clusters of elevated gold values identifying five previously unknown areas of gold anomaly in addition to the target area identified by previous exploration. Each of these warrants systematic follow-up sampling. This was followed by a shallow air core drilling program on the highest priority anomaly which confirmed anomalous gold and copper. Deeper reverse circulation drilling is scheduled, along with further shallow drilling on the other targets.
Consolidated Statement of Comprehensive Income | ||
For the year ended 30 June 2011 | ||
Consolidated | Company | ||||
Note | £'000 | £'000 | £'000 | £'000 | |
2011 | 2010 | 2011 | 2010 | ||
Administrative expenses | (175) | (164) | - | - | |
Corporate expenses | (686) | (446) | (633) | (352) | |
Other expenses | 0 | - | - | - | |
Share based payment expense | (155) | - | (155) | - | |
Gain (Loss) on disposal of assets | 9 | (86) | - | ||
Impairment subsidiary loans | - | - | (462) | - | |
Impairment subsidiary investments | - | - | (1,277) | - | |
Impairment of exploration assets | (1,834) | (1,016) | - | - | |
Operating Loss | (2,841) | (1,712) | (2,527) | (352) | |
Interest received | 32 | 5 | - | - | |
Other income | 9 | 29 | - | - | |
Currency losses | (52) | (84) | - | - | |
Loss before Taxation | (2,852) | (1,762) | (2,527) | (352) | |
Taxation | 5 | - | - | - | - |
Loss for the period | (2,852) | (1,762) | (2,527) | (352) | |
Other comprehensive income: | |||||
Exchange differences on translating foreign operations | 1,354 | 1,174 | - | - | |
Other comprehensive income for the period, net of income tax | 1,354 | 1,174 | - | - | |
Total comprehensive income for the period | (1,498) | (588) | (2,527) | (352) | |
Basic loss per share | 6 | (0.65)p | (0.79)p | ||
Consolidated Balance Sheet at 30 June 2011
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Consolidated | Company | |||||||||||
Note | £'000 | £'000 | £'000 | £'000 | ||||||||
2011 | 2010 | 2011 | 2010 | |||||||||
ASSETS | ||||||||||||
Non-current assets | ||||||||||||
Intangible assets - deferred exploration costs | 7 | 7,310 | 6,986 | - | - | |||||||
Investment in subsidiaries | 5 | - | - | 700 | 1,977 | |||||||
Loans to subsidiaries | 5 | - | - | 7,162 | 5,064 | |||||||
Plant and equipment | 9 | 35 | 28 | - | - | |||||||
Total non-current assets | 7,345 | 7,014 | 7,862 | 7,041 | ||||||||
Current assets | ||||||||||||
Cash and cash equivalents | 1,585 | 35 | 95 | 4 | ||||||||
Trade & other receivables | 10 | 24 | 28 | - | - | |||||||
Prepayments | 5 | 34 | - | - | ||||||||
Total current assets | 1,614 | 97 | 95 | 4 | ||||||||
Total assets | 8,959 | 7,111 | 7,957 | 7,045 | ||||||||
LIABILITIES | ||||||||||||
Current liabilities | ||||||||||||
Trade and other payables | 11 | (84) | (162) | (10) | - | |||||||
Provisions | - | - | - | - | ||||||||
Interest bearing liabilities | 12 | (9) | (7) | - | - | |||||||
Total current liabilities | (93) | (169) | (10) | - | ||||||||
Non-current liabilities | ||||||||||||
Interest bearing liabilities | 12 | (6) | (13) | - | - | |||||||
Total non-current liabilities | (6) | (13) | - | - | ||||||||
Total liabilities | (99) | (182) | (10) | - | ||||||||
Net assets | 8,860 | 6,929 | (7,947) | 7,045 | ||||||||
Equity | ||||||||||||
Issued share capital | 13 | 1,591 | 729 | 1,591 | 729 | |||||||
Share premium | 9,687 | 7,275 | 9,687 | 7,275 | ||||||||
Foreign exchange reserve | 4,012 | 2,658 | - | - | ||||||||
Merger reserve | 405 | 1,634 | 405 | 1,634 | ||||||||
Option revaluation reserve | 14 | 165 | 10 | 165 | 10 | |||||||
Retained losses | (7,000) | (5,377) | (3,901) | (2,603) | ||||||||
Total equity | 8,860 | 6,929 | 7,947 | 7,045 | ||||||||
The accompanying notes form part of these financial statements.
These Financial Statements were approved by the Board of Directors on 29 September 2011 and were signed on its behalf by:
Michael Billing Allan Burchard
Executive Chairman Chief Financial Officer
Consolidated Cash Flow Statement for the year ended 30 June 2011
Consolidated | Company | |||
£'000 | £'000 | £'000 | £'000 | |
2011 | 2010 | 2011 | 2010 | |
Cash flows from operating activities | ||||
Operating Loss | (2,841) | (1,712) | (2,527) | (352) |
Decrease/(increase) in trade and other receivables | 33 | 27 | - | - |
Increase/(decrease) in trade and other payables | (78) | (25) | 10 | (14) |
Depreciation | 23 | 26 | - | - |
Exploration expenditure written off | 1,834 | 1,016 | - | - |
Impairment subsidiary loans | - | - | 462 | - |
Impairment subsidiary investments | - | - | 1,277 | - |
Loss on disposal of development assets | 86 | - | - | |
Share based payment expense | 155 | - | 155 | - |
Sundry income | 9 | 29 | - | - |
Profit on sale of fixed assets | (9) | (6) | - | - |
Net cash outflow from operating activities | (874) | (559) | (623) | (366) |
Cash flows from investing activities | ||||
Interest received | 32 | 5 | - | - |
Refund of R & D grant relating to development | - | 42 | - | - |
Proceeds on disposal of development assets | - | 176 | - | - |
Proceeds from sale of fixed assets | 12 | 41 | - | - |
Purchase of property, plant and equipment | (28) | - | - | - |
Payments for exploration expenditure1 | (609) | (440) | - | |
Loans to controlled entities | - | - | (2,174) | (404) |
Net cash outflow from investing activities | (593) | (176) | (2,174) | (404) |
Cash flows from financing activities | ||||
Repayment of borrowings | (5) | (58) | - | - |
Net issue of ordinary share capital | 2,888 | 630 | 2,888 | 630 |
Net cash inflow from financing activities | 2,883 | 572 | 2,888 | 630 |
Net decrease in cash and cash equivalents | 1,416 | (163) | 91 | (140) |
Non cash exchange changes | 134 | - | - | - |
Cash and cash equivalents at beginning of period | 35 | 198 | 4 | 144 |
Cash and cash equivalents at end of period | 1,585 | 35 | 95 | 4 |
1 Items not involving the movement of funds: - 45 million shares were issued in consideration for the acquisition of an increased interest in the Dundas tenements.
Consolidated Statement of Changes in Equity
For the year ended 30 June 2011
Consolidated | Issued share capital | Share premium | Retained losses | Foreign Currency Translation Reserve | Merger Reserve | Share Based Payment Reserve | Total |
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£'000 | £'000 | £'000 | £'000 | £'000 | £'000 | £'000 |
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At 1 July 2009 | 514 | 6,860 | (3,615) | 1,484 | 1,634 | 10 | 6,887 |
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Loss for the period | - | - | (1,762) | - | - | - | (1,762) |
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Foreign currency translation reserve | - | - | - | 1,174 | - | - | 1,174 |
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Total comprehensive income / (loss) for the period | - | - | (1,762) | 1,174 | - | - | (588) |
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Transactions with owners in their capacity as owners | |||||||||||||||||
Shares issued | 215 | 465 | - | - | - | - | 680 |
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Cost of shares issued | (50) | - | - | - | - | (50) |
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At 30 JUNE 2010 | 729 | 7,275 | (5,377) | 2,658 | 1,634 | 10 | 6,929 |
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Balance at 1 July 2010 | 729 | 7,275 | (5,377) | 2,658 | 1,634 | 10 | 6,929 |
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Loss for the period | - | - | (2,852) | - | - | - | (2,852) |
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Foreign currency translation reserve | - | - | - | 1,354 | - | - | 1,354 |
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Total comprehensive income / (loss) for the period | - | - | (2,852) | 1,354 | - | - | (1,498) |
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Transactions with owners in their capacity as owners | |||||||||||||||||
Shares issued | 862 | 2,654 | - | - | - | - | 3,516 |
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Cost of shares issued | - | (242) | - | - | - | - | (242) |
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Reserve written back | - | - | 1,229 | - | (1,229) | - | 0 |
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Share options issued | - | - | - | - | - | 155 | 155 |
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At 30 June 2011 | 1,591 | 9,687 | (7,000) | 4,012 | 405 | 165 | 8,860 |
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Consolidated Statement of Changes in Equity
For the year ended 30 June 2010
Company | Issued share capital | Share premium | Retained losses | Foreign Currency Translation Reserve | Merger Reserve | Share Based Payment Reserve | Total | ||||||||||||||||||||
£'000 | £'000 | £'000 | £'000 | £'000 | £'000 | £'000 |
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At 1 July 2009 | 514 | 6,860 | (2,251) | - | 1,634 | 10 | 6,767 |
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Loss for the period | - | - | (352) | - | - | - | (352) |
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Total comprehensive income / (loss) for the period | - | - | (352) | - | - | - | (352) |
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Transactions with owners in their capacity as owners |
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Shares issued | 215 | 465 | - | - | - | - | 680 |
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Cost of shares issued | (50) | - | - | - | - | (50) |
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At 30 JUNE 2010 | 729 | 7,275 | (2,603) | - | 1,634 | 10 | 7,045 |
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Balance at 1 July 2010 | 729 | 7,275 | (2,603) | - | 1,634 | 10 | 7,045 |
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Loss for the period | - | - | (2,527) | - | - | - | (2,527) |
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Total comprehensive income / (loss) for the period | - | - | (2,527) | - | - | - | (2,527)
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Transactions with owners in their capacity as owners |
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Shares issued | 862 | 2,654 | - | - | - | - | 3,516 |
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Cost of shares issued | - | (242) | - | - | - | - | (242) |
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Reserve written back | - | - | 1,229 | - | (1,229) | - | 0 |
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Share options issued | - | - | - | - | - | 155 | 155 |
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At 30 June 2011 | 1,591 | 9,687 | (3,901) | - | 405 | 165 | 7,947 |
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Notes to the Financial Statements for the period year to 30 June 2011
1. The Directors are not recommending the payment of an ordinary share dividend.
2. Loss per share on the net basis is calculated on a loss on ordinary activities after taxation of £2,852,000 (2010:£1,762,000) and on 438,071,586 (2010: 222,694,602) ordinary shares being the weighted average number of shares in issue and ranking for dividend during the period. No diluted loss per share is presented as the effect of exercise of outstanding options is to decrease the loss per share.
3. The financial information set out in the final results announcement has been prepared in accordance with the requirements of the Companies Act 2006 and Article 4 of the IAS Regulation.
Results for the period ended 30 June 2011 are abridged from the 2011 Annual Report and Accounts, which received an unqualified auditor's report and will be filed with the Registrar of Companies following the Annual General Meeting on 23 November 2011.
4. The Annual Report is expected to be posted to shareholders on or about 28 October 2011. Pursuant to the AIM Rules the Annual Report and Accounts will be available on the Company's web site, www.thormining.com, from 17 October 2011. Further copies will be available from the Company's registered office: 3rd Floor, 55 Gower Street, London WC1E 6HQ.
5. The Annual General Meeting of the Company will be held at 36 Old Jewry, London, EC2R 8DD England, on Wednesday 23 November 2011 at 10.00 a.m.
Enquiries:
Mick Billing | +61 (0) 414 741 007
| Thor Mining PLC | Chairman |
Allan Burchard | +61 (0) 8 7324 1935
| Thor Mining PLC | CFO/Company Secretary |
John Simpson | 020 7776 6550
| Daniel Stewart & Co Plc | Nominated Adviser |
Nick Emerson/ Renato Rufus | +44 (0) 148 3413 500 | Simple Investments | Broker |
Alex Walters/Emma Wigan | +44 (0) 777 1713 608
+44 (0) 207 8399 260
| Cadogan PR | Financial PR |
Updates on the Company's activities are regularly posted on Thor's website www.thormining.com, which includes a facility to register to receive these updates by email.