Tertiary Minerals Regulatory News (TYM)

11 Dec 2006 07:00

Tertiary Minerals PLC11 December 2006 Tertiary Minerals plc Final Results Chairman's Statement I am pleased to report that the preliminary agreement we signed with a Saudibusiness consortium in 2005 for funding the US$7 million cost of feasibilitystudies for our Ghurayyah rare-metal project in Saudi Arabia was converted intoa full joint venture agreement in March this year, and funds have been committedby the joint venture partners. Ghurayyah Preliminary Feasibility Study The Preliminary Feasibility Study is now well underway. Metallurgical testwork,using a three tonne sample obtained from previously collected drill samples, hasnow advanced to the stage where the initial mineral concentration scheme islargely defined. This has resulted in improvements in metal recoveries andreductions in reagent usage which should combine to reduce operating costs fromour 2002 estimates. A further drilling programme has generated a 55 tonne samplewhich will form the basis for pilot scale testing of the proposed bulkconcentration method. Further metallurgical testwork, designed to separate thecontained tantalum, niobium, zircon and yttrium, is also in progress and shouldbe completed early in 2007. A significant breakthrough in the current mineral processing testwork has beenmade with the development of a process that will allow the use of seawater asthe mineral processing medium. This provides a sustainable alternative to theuse of groundwater resources which are scarce in Saudi Arabia. Environmentalstudies have also started which will ultimately lead to the preparation of acomprehensive Environmental Management Plan. The marketing plan is progressing on track with strong interest in the project'sfuture production being shown by leading industry participants. It is likelythat the project will be designed to produce separate tantalum and niobiumproducts in order to maximize project revenues. The outlook for both thetantalum and niobium markets remains strong. In addition, excellent localmarkets have been identified for the zircon contained in the Ghurayyah depositprovided that current metallurgical testwork shows that it can be produced tothe desired specification. The recovery of an yttrium product will also beevaluated. The Saudi Government has asked that we do not develop a separateuranium product for sale. The preliminary feasibility study is scheduled for completion by the end of2007. Sunrise Diamonds plc Our associated company Sunrise Diamonds plc ("Sunrise Diamonds") (23.45% held)has continued to make excellent progress in exploring its diamond projects inFinland during the year. It has announced a number of new diamondiferouskimberlite discoveries and a significant joint venture with Canada's NordicDiamonds Ltd that will give it access to previous kimberlite discoveries made inthe 1990's by Ashton Mining. Although it is disappointing to see that this progress is not reflected in astronger share price for Sunrise Diamonds, its shares have traded consistentlyat more than twice the price at which Tertiary shareholders were offered sharesin the lead up to the admission of Sunrise Diamonds to AIM last year. TheBoard's belief is that Sunrise Diamonds holds an exceptionally interestingexploration portfolio and database in Finland and that it is substantiallyundervalued at the current market price. Other Exploration Projects The Company's focus this year on advancing the Ghurayyah project has meant thatour Scandinavian gold and base-metal portfolio was allocated only limitedexpenditure. The Company is considering strategic options for these projects,including several joint venture approaches and the resumption of explorationonce funding levels permit. Annual Results The Group reported a loss of £250,934 for the year (2005: £415,803). In Conclusion I would like to take this opportunity to thank all of my staff and fellowDirectors who have worked hard to advance the Company's interests this year. Ithas been a year of solid progress which we expect will result in further rewardfor our shareholders. Patrick L CheethamExecutive Chairman 8 December 2006 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 Tertiary Minerals plc Consolidated Profit and Loss Account for the year ended 30 September 2006 2006 2005 £ £ Exploration costs written off 52,077 294,088Administrative expenses 227,250 310,269 ---------- ---------- Operating loss (279,327) (604,357) Share of loss of associate (48,294) (44,892) Profit on disposal of intangible asset - 75,100 Profit on disposal of tangible asset 504 - Profit arising from the increase in value of theGroup's share of the net assets of Sunrise Diamondsresulting from share issues 44,357 134,371 Interest receivable 28,268 22,579 Share of interest receivable of associate 3,558 1,396 ---------- ---------- Loss on ordinary activities before taxation (250,934) (415,803) Tax on loss on ordinary activities - - Loss for the year (250,934) (415,803) ---------- ---------- Loss per share - basic (pence) (0.49) (0.93) ---------- ---------- All amounts relate to continuing activities. Tertiary Minerals plc Consolidated Statement of Total Recognised Gains and Losses for the year ended 30 September 2006 2006 2005 £ £ Loss for the year (250,934) (415,803) Foreign exchange translation differences on foreigncurrency net investments in subsidiaries (21,507) (19,488) ---------- ---------- Total recognised losses since last accounts (272,441) (435,291) ---------- ---------- Tertiary Minerals plc Balance sheets at 30 September 2006 Group Group Company Company 2006 2005 2006 2005 £ £ £ £Fixed assetsIntangible assets 1,158,926 943,219 - -Tangible assets 9,898 5,676 6,500 -Investment in subsidiary - - 224,889 224,889Investment in associate - - 215,250 150,000Share of net assets ofassociate 222,221 157,350 - - -------- -------- -------- -------- 1,391,045 1,106,245 446,639 374,889 -------- -------- -------- -------- Current assetsDebtors 57,197 65,705 3,122,500 2,334,206Cash at bank and in hand 884,110 435,969 385,305 424,940 -------- -------- -------- -------- 941,307 501,674 3,507,805 2,759,146 Creditors: amountsfalling due within oneyear (71,052) (37,916) (37,274) (25,074) -------- -------- -------- -------- Net current assets 870,255 463,758 3,470,531 2,734,072 -------- -------- -------- -------- Net assets 2,261,300 1,570,003 3,917,170 3,108,961 -------- -------- -------- -------- Capital and reservesCalled up share capital 545,127 464,210 545,127 464,210Share premium account 4,259,683 3,376,862 4,259,683 3,376,862Merger reserve 131,096 131,096 131,096 131,096Profit and loss account (2,674,606) (2,402,165) (1,018,736) (863,207) -------- -------- -------- -------- Shareholders' funds 2,261,300 1,570,003 3,917,170 3,108,961 -------- -------- -------- -------- Tertiary Minerals plc Consolidated Cash Flow Statement for the year ended 30 September 2006 2006 2005 £ £ Net cash outflow from operating activities (217,465) (303,749) Returns on investment and servicing of financeInterest received 28,268 19,898 ----------- ----------- Net cash outflow from operating activities (189,197) (283,851)after returns on investments and servicing of finance ----------- ----------- Capital expenditure and financial investmentPurchase of intangible fixed assets (230,324) (304,658)Purchase of tangible fixed assets (9,520) (3,675)Receipts from sale of intangible fixed assets - 150,000Receipts from sale of tangible fixed assets 4,166 - ----------- -----------Net cash outflow from capital expenditure and financialinvestment (235,678) (158,333) ----------- ----------- Acquisitions and disposalsPayments to acquire investment in associate (65,250) (150,000) ----------- -----------Net cash outflow from acquisitions and disposals (65,250) (150,000) ----------- ----------- Financing Issue of share capital (net of expenses) 963,738 475,197Exchange differences (25,472) (4,710) ----------- ----------- Net cash inflow from financing 938,266 470,487 ----------- ----------- Increase/(decrease) in cash 448,141 (121,697) ----------- ----------- 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 2006 or 2005. Thefinancial information for 2005 is derived from the Statutory Accounts for 2005,which have been delivered to the Registrar of Companies. The auditors havereported on the 2005 and 2006 accounts; their reports were unqualified and didnot contain statements under section 237 of the Companies Act 1985. TheStatutory Accounts for 2006 will be delivered to the Registrar of Companiesfollowing the Company's Annual General Meeting. 2 Reconciliation of movements in shareholders' funds Group Group Company Company 2006 2005 2006 2005 £ £ £ £ Loss for the year (250,934) (415,803) (155,529) (169,979)Exchange differences (21,507) (19,488) - -Shares issued during the year 963,738 475,197 963,738 475,197 --------- --------- --------- --------- Increase in shareholders'funds 691,297 39,906 808,209 305,218 --------- --------- --------- --------- Opening shareholders' funds 1,570,003 1,530,097 3,108,961 2,803,743 --------- --------- --------- --------- Closing shareholders' funds 2,261,300 1,570,003 3,917,170 3,108,961 --------- --------- --------- --------- 3 Reconciliation of operating loss to net cash outflow from operating activities 2006 2005 £ £Operating loss (279,327) (604,357)Depreciation charge 3,301 3,035Depreciation released on disposal (2,169) -Profit on disposal of tangible fixed assets 504 -Intangible fixed assets written off 18,582 305,921Disposal of intangible fixed assets - (74,900)Decrease in debtors 8,508 4,878Increase/(Decrease) in creditors 33,136 (24,532)Share of operating loss of subsidiary prior toit becoming an associate - 86,206 -------- -------- Net cash outflow from operating activities (217,465) (303,749) -------- -------- 4 Reconciliation of cash flow to movement in net funds Cash at bank and in hand £At 30 September 2006 884,110At 1 October 2005 435,969 ---------- Increase in cash in the year 448,141 Cash outflow from decrease in funds and lease -financingCash inflow from decrease in liquid resources - ---------- Change in net funds resulting from cash flows 448,141New finance leases - ---------- Movement in net funds in the year 448,141Net funds at 1 October 2005 435,969 ---------- Net funds at 30 September 2006 884,110 ---------- 5 Dividend No dividend is proposed. 6 Annual Report The Company's 2006 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 at Sunrise House, Hulley Road, Macclesfield,Cheshire, SK10 2LP for at least 30 days from the date of publication. 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