Tertiary Minerals Regulatory News (TYM)

16 Dec 2005 07:01

Tertiary Minerals PLC16 December 2005 TERTIARY MINERALS PLC FINAL RESULTS FOR THE YEAR ENDED 30 SEPTEMBER 2005 Chairman's Statement During 2005 your Company's efforts to enhance shareholder value were rewardedwith the recent announcement of a US$7 million funding agreement with a SaudiConsortium for the completion of feasibility studies at our Ghurayyahtantalum-niobium project. Ghurayyah Project Funding This agreement demonstrates the underlying value of Ghurayyah and it is asignificant milestone in the development of this major project. The financingincluded a placing of shares at a significant premium to the then share priceand allows the Company to retain a 50% interest in the project. It is hopedthat, at the development stage, when bank financing is sought, the favourablelocal financing environment could reduce Tertiary's equity requirement to justover 6% of the overall $US100 million capital cost that was estimated for theproject in the 2003 Scoping Study. The agreement to fund Ghurayyah comes at a time when the tantalum market hassubstantially recovered from the volatility of the year 2000 'electronicsbubble'. Demand has returned to 1999 levels and is believed to be growing atrates in excess of 5%. On the supply side, concerns remain over future rawmaterial supplies. The US Defence Logistics stockpile is expected to be depletedin the near future and the world's leading supplier of tantalum, Sons of Gwalia,remains in administration. Sunrise Diamonds plc Another notable achievement during the year was the re-organisation of theCompany's diamond interests into a separate company, Sunrise Diamonds plc ("Sunrise"), which was admitted to trading on AIM in June 2005. This was achieved through an entitlement issue of shares to all Tertiaryshareholders and those who took advantage of this opportunity have seen theirSunrise shares continuing to trade at a premium to their subscription price.Sunrise has built on Tertiary's initial work with the announcement of furtherkimberlite discoveries, one of which contains micro-diamonds. With a direct 26%equity interest, Tertiary remains the largest shareholder in Sunrise whoseexploration portfolio has recently been enhanced by the acquisition of BHPBilliton's Finland diamond exploration database, estimated to have a replacementvalue of over US$10 million. Exploration Projects Turning to our other projects, it was pleasing to report further positive golddrill-intersections on the Vanha lode at our Kaaresselka gold project inFinland where further follow up exploration is warranted. Exploration on theNottrask nickel project in Sweden, and the Pitkajarvi gold-copper projectin Finland yielded less favourable results and these projects have now beenrelinquished. Drilling of a large iron-oxide related copper-cobalt-gold mineralised system atAhmavuoma in northern Sweden was deferred in 2005 but is budgeted for 2006. Annual Results The Group reported a loss of £415,803 for the year (2004: £861,081). In Conclusion The Company's management has been working hard to advance the Company's majorprojects during the year. These efforts have culminated in the listing ofSunrise Diamonds and the recent announcement of value-adding agreements onGhurayyah (and, in Sunrise Diamonds, with BHP-Billiton) and I am pleased to seea turnaround in the Company's share price. We look forward to working with ournew partners to bring Ghurayyah to production and to building on the Company'sfirm foundations. Patrick L. CheethamExecutive Chairman15 December 2005 Further Information:Patrick Cheetham, Tertiary Minerals Plc. Tel: +44 (0)1625-626203.Ron Marshman/John Greenhalgh, City of London PR Ltd. Tel: +44 (0)20-7628-5518 Web-site: www.tertiaryminerals.com Consolidated Profit and Loss Accountfor the year ended 30th September 2005 2005 2004 £ £ Exploration costs written off 294,088 636,714Administrative expenses 310,269 245,030 _________ ________ Operating loss (604,357) (881,744) Share of loss of associate (44,892) - Profit on disposal of intangible asset 75,100 - Profit on sale of interest in subsidiary 134,371 - Interest receivable 22,579 20,663 Share of interest receivable of associate 1,396 - Loss on ordinary activities before taxation (415,803) (861,081) _______ _______ Tax on profit on ordinary activities - - Loss for the financial year (415,803) (861,081) ======= ======= Loss per share - basic (pence) (0.93) (2.30) ==== ====All amounts relate to continuing activities. Balance Sheetsfor the year ended 30th September 2005 Group Group Company Company 2005 2004 2005 2004 £ £ £ £Fixed assetsIntangible assets 943,219 959,260 - -Tangible assets 5,676 5,036 - -Investment in subsidiary - - 224,889 224,889Investment in associate - - 150,000 -Share of net assets of associate 157,350 - - - _________ _______ _______ _______ 1,106,245 964,296 374,889 224,889 ========= ======= ======= ======= Current assets Debtors 65,705 70,583 2,334,206 2,051,199Cash at bank and in hand 435,969 557,666 424,940 554,239 _______ _______ _________ _________ 501,674 628,249 2,759,146 2,605,438 Creditors: amounts falling due within 37,916 62,448 25,074 26,584one year _______ _______ _________ _________ Net current assets 463,758 565,801 2,734,072 2,578,854 _______ _______ _________ _________ Total assets less current liabilities 1,570,003 1,530,097 3,108,961 2,803,743 ========= ========= ========= ========= Capital and reserves Called up share capital 464,210 404,210 464,210 404,210Share premium account 3,376,862 2,961,665 3,376,862 2,961,665Merger reserve 131,096 131,096 131,096 131,096Profit and loss account (2,402,165) (1,966,874) (863,207) (693,228) _________ _________ ________ _________ Shareholders funds 1,570,003 1,530,097 3,108,961 2,803,743 ========== ========== ========= ========= Consolidated Cash Flow Statementfor the year ended 30th September 2005 2005 2004 £ £ Net cash outflow from operating activities (303,749) (289,450) Returns on investment and servicing of finance Interest received 19,898 20,663 _________ ________ Net cash outflow from operating activities after (283,851) (268,787)returns on investments and servicing of finance _________ ________ Capital expenditure and financial investment Purchase of intangible fixed assets (304,658) (397,630) Purchase of tangible fixed assets (3,675) (5,021) Receipts from sale of intangible fixed assets 150,000 - _________ ________ Net cash outflow from capital expenditure and (158,333) (402,651)financial investment _________ ________ Acquisitions and disposals Payments to acquire investment in associate (150,000) - ________ ________ Net cash outflow from acquisitions and disposals (150,000) - ________ ________ Financing Issue of share capital (net of expenses) 475,197 996,687Exchange differences (4,710) 4,912 _______ _________ Net cash inflow from financing 470,487 1,001,599 ________ _________ (Decrease)/Increase in cash (121,697) 330,161 ======= ========= Consolidated Statement of Total Recognised Gains and Lossesfor the year ended 30th September 2005 2005 2004 £ £Statement of total recognised gains and losses Loss for the financial year (415,803) (861,081) Foreign exchange translation differences on foreign (19,488) (7,830)currency net investments in subsidiaries Total recognised losses since last accounts (435,291) (868,911) ======= ======= Notes: 1 Publication of Non-Statutory Accounts The financial information set out in this announcement does not constitute theCompany's Statutory Accounts for the period ended 30 September 2005 or 2004. Thefinancial information for 2004 is derived from the Statutory Accounts for 2004,which have been delivered to the Registrar of Companies. The auditors havereported on the 2004 and 2005 accounts; their reports were unqualified and didnot contain statements under section 237 of the Companies Act 1985. TheStatutory Accounts for 2005 will be delivered to the Registrar of Companiesfollowing the Company's Annual General Meeting. 2. Share capital 2005 2005 2004 2004 No. £ No. £AuthorisedOrdinary shares of 1p each 150,000,000 1,500,000 150,000,000 1,500,000 ___________ _________ ___________ _________ 150,000,000 1,500,000 150,000,000 1,500,000 =========== ========= =========== ========= Allotted, called up and fully paidOrdinary shares of 1p each 46,421,093 464,210 40,421,093 404,210 __________ _______ __________ _______ 46,421,093 464,210 40,421,093 404,210 ========== ======= ========= ======= During the year a placement was made of 6,000,000 new 1 penny ordinary sharesfor a total consideration of £480,000. 3. Warrants granted Unexercised warrants Issue dates Exercise price Number Expiry Dates 10/08/05 6.5p 2,100,000 10/08/08 Warrants are issued for nil consideration and are exercisable as disclosedabove. Warrants are exchangeable on a one for one basis for each ordinary shareof 1 penny at the exercise price on the date of conversion. 4. Reconciliation of movements in shareholders' funds Group Group Company Company 2005 2004 2005 2004 £ £ £ £ Loss for the financial year (415,803) (861,081) (169,979) (170,357)Exchange differences (19,488) (7,830) - (65)Shares issued during the year net 475,197 996,687 475,197 996,687of issue costs ________ ________ ________ _________Increase in shareholders' funds 39,906 127,776 305,218 826,265 ======== ======== ======== ========= Opening shareholders' funds 1,530,097 1,402,321 2,803,743 1,977,478 ========= ========= ========= ========= Closing shareholders' funds 1,570,003 1,530,097 3,108,961 2,803,743 ========= ========= ========= ========= 5. Reconciliation of operating loss to net cash outflow from operatingactivities 2005 2004 £ £Operating loss (604,357) (881,744)Depreciation and loss on disposal of fixed assets 3,035 3,864 Intangible fixed assets written off 305,921 606,024 Disposal of intangible fixed assets (74,900) - (Increase)/Decrease in debtors 4,878 (42,191)Increase/(Decrease) in creditors (24,532) 24,597Share of operating loss of subsidiary prior to it becoming 86,206 -an associate ________ ________ Net cash outflow from operating (303,749) (289,450)activities ======= ======== 6. Reconciliation of cash flow to movement in net funds Cash at bank Total and in hand £ £ At 30th September 2005 435,969 435,969At 1 October 2004 557,666 557,666 _______ _______ Decrease in cash in the year (121,697) (121,697) Cash outflow from decrease in funds and lease financing - Cash inflow from decrease in liquid resources - ________Change in net funds resulting from cash flows (121,697) New finance leases - _______ Movement in net funds in the year (121,697) Net funds at 1 October 2004 557,666 _______Net funds at 30th September 2005 435,969 =======7. Post balance sheet event On 13 December 2005, as a result of agreement reached with two Saudi companieson the Ghurayyah project, Tertiary Minerals issued 5,000,000 ordinary shares ofone pence each, at a price of 10p per share, to raise £500,000 before expenses. 8. Dividend No dividend is proposed 9. Annual Report The Company's 2005 Annual Report will be published and sent to shareholders indue course and copies will be available to the public, free of charge, from theRegistered Office of the Company or from Tertiary Minerals plc, Sunrise House,Hulley Road, Macclesfield, Cheshire, SK10 2LP for at least one month from the dateof publication. This information is provided by RNS The company news service from the London Stock Exchange