Last checked at 7 Dec 2009 15:13
Announcement of audited Financial statements FOR THE YEAR ENDED
30 SEPTEMBER 2009
Tertiary Minerals plc
Audited financial statements for the year ended 30 September 2009
Chairman's Statement
I have pleasure in presenting the Company's audited financial statements for the year ended 30 September 2009.
So far in 2009, the much feared financial meltdown appears to have been averted with commodity prices and stock markets around the World staging strong recoveries - fuelled in part by governments' quantitative easing policies.
In late 2008, anticipating the imminent downturn, we reduced costs where possible but, importantly, we kept our small team of professionals together. Discretionary project expenditure was slowed during the first half of 2009 but - as some optimism returned to the markets, and after a further fundraising - we made a decision to push forward with work on our Storuman fluorspar project in Sweden, where good progress is now being made towards completion of a scoping study.
Storuman Fluorspar Project
Our work programmes will culminate in a scoping study and a preliminary economic evaluation of the project which is expected towards the end of the first quarter of 2010.
Some components of this study are complete. Following our drilling programme last year we were recently able to report the results for our consultant Scott Wilson's estimation of the tonnage and grade of mineralisation at Storuman. Their estimate of 28-31 million tonnes containing over 3 million tonnes of fluorspar is nearly double the previously reported estimate and I believe the size of the deposit has potential to grow further with additional drilling.
The most time consuming component of the scoping study is the metallurgical testwork programme. Good progress is being made in understanding the metallurgical character of the Storuman ore, and metallurgical challenges are being met. A significant achievement during the year was the demonstration that a saleable fluorspar concentrate can be produced.
Following the global economic crisis fluorspar demand fell sharply at the end of 2008, as might have been expected, and demand remains relatively weak. In early 2009 some fluorspar mines reduced output, or closed temporarily, but in some cases production levels have now returned to normal. In 2008-9 there has been a sharp fall in fluorspar prices from a 'peak' of US$500/tonne to a prevailing price of US$300/tonne which is, importantly, still substantially higher than prices just a few years ago. This reflects a continuing tightness in traditional supplies from China as their domestic demand grows, and export is discouraged by Government taxes.
Ghurayyah
We are still awaiting the issue of the new exploration licence over the world class Ghurayyah tantalum-niobium rare-earth deposit in Saudi Arabia and a recent communication from the Deputy Ministry for Minerals Resources confirms that our Consortium's licence application is still under active consideration.
Other licence applicants in Saudi Arabia have experienced similar delays.
Other Projects
At Vähäjoki, exploration drilling for copper and gold during the year by joint venture partner Inmet Mining Corporation of Canada did not generate ore-grade intersections and the project was returned to the Company as Inmet withdrew from the joint venture.
Work on the Company's other projects has been deferred during 2009, although further work is budgeted for 2010 for the Kaareselkä gold project and Kolari iron project.
Sunrise Diamonds plc
The Company has maintained its shareholding in Sunrise Diamonds plc at 14% of the issued capital, and continues to provide management services to Sunrise Diamonds.
Procedures are in place in order to avoid any conflict of interest between the Company and Sunrise Diamonds in the search for, evaluation and acquisition of new projects.
Financials
The Group reported a loss of £270,269 for the year (2008: £791,965). The audited financial statements are prepared under International Financial Reporting Standards (IFRS), as adopted by the European Union.
In Conclusion
The sustainability of the current market recovery remains uncertain and whilst we are pressing on with our key projects, we are also maintaining a tight control on expenditure. Pleasing progress is being made at Storuman and we look forward to the conclusion of the scoping study in 2010.
I would like to thank all my fellow directors and staff for their salary sacrifices during the year and our new and longstanding shareholders who continue to support the Company.
Patrick Cheetham
Executive Chairman
7 December 2009
Further Information:
Patrick Cheetham, Tertiary Minerals Plc. Tel: +44 (0)1625-626203.
Web-site: www.tertiaryminerals.com
Tertiary Minerals plc
Consolidated Income Statement
for the year ended 30 September 2009
| 2009 £ | 2008 £ | ||
| Pre-licence exploration costs | 38,127 | 53,292 | |
| Impairment of deferred exploration costs | 27,673 | 481,842 | |
| Administrative expenses | 211,195 | 289,768 | |
| Operating loss | (276,995) | (824,902) | |
| Interest receivable | 6,726 | 32,937 | |
| Loss on ordinary activities before taxation | (270,269) | (791,965) | |
| Tax on loss on ordinary activities | - | - | |
| Loss for the year attributable to equity holders of the parent | (270,269) | (791,965) | |
| Loss per share - basic and diluted (pence) | (0.36) | (1.27) | |
All amounts relate to continuing activities.
Tertiary Minerals plc
Statements of Recognised Income and Expense
for the year ended 30 September 2009
| Group | Company | Group | Company | ||
| 2009 £ | 2009 £ | 2008 £ | 2008 £ | ||
| Loss for the year | (270,269) | (183,209) | (791,965) | (241,783) | |
| Movement in revaluation of available for sale investment | (90,131) | (90,131) | (317,035) | (317,035) | |
| Foreign exchange translation differences on foreign currency net investments in subsidiaries | 83,331 | - | 105,348 | - | |
| Total recognised (expense)/income since last accounts | (277,069) | (273,340) | (1,003,652) | (558,818) | |
Tertiary Minerals plc
Company Registration Number : 03821411
Balance Sheets
at 30 September 2009
| Group | Company | Group | Company | ||
| 2009 | 2009 | 2008 | 2008 | ||
| £ | £ | £ | £ | ||
| Non-current assets | |||||
| Intangible assets | 595,269 | - | 504,823 | - | |
| Property, plant & equipment | 2,569 | 2,250 | 5,448 | 3,545 | |
| Investment in subsidiary | - | 3,858,757 | - | 3,719,351 | |
| Available for sale investment | 167,387 | 167,387 | 257,519 | 257,519 | |
| 765,225 | 4,028,394 | 767,790 | 3,980,415 | ||
| Current assets | |||||
| Receivables | 52,096 | 48,620 | 53,216 | 33,248 | |
| Cash and cash equivalents | 725,080 | 416,946 | 591,968 | 310,903 | |
| 777,176 | 465,566 | 645,184 | 344,151 | ||
| Current liabilities | |||||
| Trade and other payables | (76,631) | (41,236) | (94,280) | (48,209) | |
| Net current assets | 700,545 | 424,330 | 550,904 | 295,942 | |
| Net assets | 1,465,770 | 4,452,724 | 1,318,694 | 4,276,357 | |
| Equity | |||||
| Called up share capital | 883,346 | 883,346 | 636,037 | 636,037 | |
| Share premium account | 5,031,655 | 5,031,655 | 4,859,689 | 4,859,689 | |
| Merger reserve | 131,096 | 131,096 | 131,096 | 131,096 | |
| Share option reserve | 96,051 | 96,051 | 65,619 | 65,619 | |
| Available for sale revaluation reserve | (115,341) | (72,816) | (25,210) | 17,315 | |
| Foreign currency reserve | 160,795 | - | 77,464 | - | |
| Accumulated losses | (4,721,832) | (1,616,608) | (4,426,001) | (1,433,399) | |
| Shareholders' funds | 1,465,770 | 4,452,724 | 1,318,694 | 4,276,357 |
Tertiary Minerals plc
Cash Flow Statements
for the year ended 30 September 2009
| Group 2009 | Company 2009 | Group 2008 | Company 2008 | |
| £ | £ | £ | £ | |
| Operating activities | ||||
| Operating loss | (276,995) | (187,577) | (824,902) | (267,057) |
| Issue of shares in lieu of net wages | 15,275 | 15,275 | - | - |
| Depreciation charge | 3,149 | 1,566 | 3,318 | 1,545 |
| Impairment charge | 27,673 | - | 481,842 | - |
| Share based payment charge | 30,432 | 30,432 | 42,018 | 42,018 |
| Decrease/(Increase) in receivables | 1,120 | (15,372) | 9,252 | 20,525 |
| (Decrease)/Increase in payables | (17,649) | (6,973) | 15,973 | 7,307 |
| Net cash outflow from operating activity | (216,995) | (162,649) | (272,499) | (195,662) |
| Investing activities | ||||
| Interest received | 6,726 | 4,368 | 32,937 | 25,274 |
| Purchase of intangible assets | (99,600) | - | (291,320) | - |
| Purchase of property, plant & equipment | (270) | (270) | (84) | - |
| Purchase of available for sale investments | - | - | (24,954) | (24,954) |
| Additional investment in subsidiaries | - | (139,406) | - | (332,695) |
| Net cash outflow from investing activity | (93,144) | (135,308) | (283,421) | (332,375) |
| Financing activity | ||||
| Issue of share capital (net of expenses) | 404,000 | 404,000 | 690,916 | 690,916 |
| Net cash inflow from financing activity | 404,000 | 404,000 | 690,916 | 690,916 |
| Net increase/(decrease) in cash and cash equivalents | 93,861 | 106,043 | 134,996 | 162,879 |
| Cash and cash equivalents at start of year | 591,968 | 310,903 | 441,617 | 148,024 |
| Exchange differences | 39,251 | - | 15,355 | - |
| Cash and cash equivalents at 30 September | 725,080 | 416,946 | 591,968 | 310,903 |
NOTES
1. Accounting Policies
The financial statements have been prepared on the basis of the recognition and measurement requirements of International Financial Reporting Standards (IFRS), as adopted by the European Union, and their interpretations adopted by the International Accounting Standards Board (IASB). They have also been prepared in accordance with those parts of the Companies Act 2006 applicable to companies reporting under IFRS.
In common with many exploration companies, the Company raises finance for its exploration and appraisal activities in discrete tranches. Further funding is raised as and when required. When any of the Group's projects move to the development stage, specific project financing will be required.
The directors prepare annual budgets and cash flow projections that extend beyond 12 months from the date of this report. These projections include the proceeds of future fundraising and planned discretionary project expenditures necessary to maintain the Company and Group as a going concern. Although the Company has been successful in raising finance in the past, there is no assurance that it will obtain adequate finance in the future. However, the directors have a reasonable expectation that they will secure additional funding when required to continue meeting corporate overheads and exploration costs for the foreseeable future and therefore believe that the "going concern" basis is appropriate for the preparation of the financial statements.
2. Publication of Non-Statutory Accounts
The financial information set out in this announcement does not constitute the Company's Statutory Accounts for the period ended 30 September 2009 or 2008. The financial information for 2008 is derived from the Statutory Accounts for 2008. Full audited accounts in respect of that financial period have been delivered to the Registrar of Companies.
The Statutory Accounts for 2009 will be delivered to the Registrar of Companies following the Company's Annual General Meeting. The auditors have reported on the 2009 and 2008 accounts. The 2009 accounts did not contain a statement under the Companies Act 2006 s498(2) or (3), and the 2008 accounts did not contain a statement under the Companies Act 1985 s237(2) or (3), and both received an unqualified audit opinion. However there was an emphasis of matter in relation to a requirement that the Company raise funds in the future to continue as a going concern.
3. Loss per share
Loss per share has been calculated on the loss and the weighted average number of shares in issue during the year.
| 2009 | 2008 | |||
| Loss (£) | (270,269) | (791,965) | ||
| Weighted average shares in issue (No.) | 74,472,135 | 62,560,506 | ||
| Basic and diluted loss per share (pence) | (0.36) | (1.27) |
The loss attributable to ordinary shareholders and weighted average number of ordinary shares for the purpose of calculating the diluted earnings per ordinary share are identical to those used for the basic earnings per ordinary share. This is because the exercise of share warrants and options would have the effect of reducing the loss per ordinary share and is therefore not dilutive under the terms of IAS 33.
4. Dividend
The directors are unable to recommend the payment of any ordinary dividend.
5. Annual Report
The Company's 2009 Annual Report will be published and sent to shareholders in due course and copies will be available to the public, free of charge, from the Registered Office of the Company at Sunrise House, Hulley Road, Macclesfield, Cheshire SK10 2LP and will be downloadable from the Company's website at www.tertiaryminerals.com.