Interim Results

31 May 2005 07:00

Tertiary Minerals PLC31 May 2005 TERTIARY MINERALS PLC INTERIM STATEMENT FOR THE SIX MONTHS ENDED 31 MARCH 2005 Chairman's Statement I am pleased to report the Company's progress and interim results for thesix-month period ended 31st March 2005. Review of Activities Since the publication of the last annual report your Board has been working hardto deliver on its objective to build on the value inherent in the Company. A major initiative has been the spin-out of our diamond interests in Finlandinto Sunrise Diamonds plc where, as a part of this process, a large number ofTertiary shareholders took up their entitlement to new shares in SunriseDiamonds pursuant to the recent Offer for Subscription. I am also pleased toreport that Sunrise Diamonds has now completed a placing of shares to fund itsimmediate diamond exploration programmes and is seeking admission for all itsordinary shares (including those issued under the placing ) to trading on AIM.Trading in the shares of Sunrise Diamonds is expected to commence on 6 June2005. Tertiary has retained a direct 26.53% interest in Sunrise Diamonds and welook forward to its successful AIM debut. Exploration work is continuing on our Scandinavian projects. For example,recently reported drilling at Kaaresselka in Finland made further high-gradegold intersections in the Vanha zone, whilst at Nottrask, in Sweden, adrilling programme will soon start to test targets for nickel-copper bearingmassive sulphides. We have also geared up our search to acquire an advancedminerals project capable of generating a cash-flow for the Company and haverecently recruited Andrew Dixon to the management team to focus this effort. Anumber of projects are under active evaluation. Our 400 million tonne Ghurayyah tantalum project is benefiting from renewedinterest following the recovery in the tantalum market and the adoption of a newmining law in Saudi Arabia. Several parties have expressed interest in joiningwith Tertiary to fund feasibility studies for the development of thisworld-class project. The past six-month reporting period has seen high volatility in market sentimentfor mining shares with a recent sharp downturn mirroring that which occurredthis time last year. Whilst our share price has not yet bucked a negative trendI believe that the initiatives being undertaken will have a positive impact inthe medium-term, particularly when retail investors return to the mining sector. Results The Group loss for the six month period was £314,346. This loss comprisesadministration costs of £186,816 and exploration costs (written-off) amountingto £137,328 and interest income of £9,798. Patrick L Cheetham 31 May 2005Executive Chairman For further information contact : Tertiary Minerals plc Tel: + 44 (0)1625 626203Sunrise House Fax: + 44 (0)1625 626204Hulley RoadMacclesfield Website: www.tertiaryminerals.comCheshire SK10 2LPEngland Consolidated Profit and Loss Accountfor the six months to 31 March 2005 Six months Six months Twelve months to to to 31 March 31 March 2004 30 September 2004 2005 Unaudited £ £ £ ---------- ---------- --------- Administrativeexpenses (186,816) (138,005) (245,030) Explorationcosts writtenoff (137,328) (60,132) (636,714) ---------- ---------- --------- Operating loss (324,144) (198,137) (881,744) Interestreceivable 9,798 7,465 20,663 ---------- ---------- --------- Loss onordinaryactivities (314,346) (190,672) (861,081)beforetaxation Taxation - - ---------- ---------- --------- Loss for thefinancialperiod (note2) (314,346) (190,672) (861,081) ---------- ---------- --------- Loss per share- basic(pence) (0.7) (0.5) (2.3) ---------- ---------- --------- All the above amounts are derived from continuing activities Consolidated Statement of TotalRecognised Gains and Lossesfor the six months to 31 March 2005 Six months to Six months to Twelve months to 31 March 2005 31 March 2004 30 September 2004 Unaudited Unaudited £ £ £ ---------- ---------- --------- Loss for thefinancial (314,346) (190,672) (861,081)year Foreignexchangetranslationdifferencesonforeigncurrency netinvestments 2,377 (26,289) (7,830)in ---------- ---------- ---------subsidiaries Totalrecognisedlosses sincelast (311,969) (216,961) (868,911)accounts ---------- ---------- --------- Consolidated Balance Sheetas at 31 March 2005 As at 31 March As at 31 March 2004 As at 2005 Unaudited 30 September Unaudited 2004 £ £ £ ---------- ---------- --------- Fixed assetsIntangible Assets 1,100,368 1,314,661 959,260Tangible Assets 6,338 5,691 5,036 ---------- ---------- --------- 1,106,706 1,320,352 964,296 Current assetsDebtors 91,184 35,230 70,583Cash at bank and in hand 656,880 971,212 557,666 ---------- ---------- --------- 748,064 1,006,442 628,249 ---------- ---------- --------- Creditors: amounts falling 161,442 144,747 62,448due within one year ---------- ---------- --------- Net current assets 586,622 861,695 565,801 ---------- ---------- --------- ---------- ---------- ---------Total assets less current 1,693,328 2,182,047 1,530,097liabilities ---------- ---------- --------- Capital and reservesCalled up share capital 464,210 404,210 404,210Share premium 3,376,865 2,961,665 2,961,665Merger reserve 131,096 131,096 131,096Profit and loss account (2,278,843) (1,314,924) (1,966,874) ---------- ---------- --------- Shareholders' funds 1,693,328 2,182,047 1,530,097 ---------- ---------- --------- Consolidated Cash Flow Statementfor the six months to 31 March 2005 Six months to 31 March Six months to 31 Twelve months to 2005 March 2004 30 September Unaudited Unaudited 2004 £ £ £ ---------- ---------- --------- Net cashoutflow fromoperatingactivities(note 3) (148,393) (49,142) (289,450) Return oninvestmentsand servicingof finance 9,798 7,465 20,663 Capitalexpenditureand financialinvestment (237,531) (210,546) (402,651) Acquisition and - - -disposals ---------- ---------- --------- Net cashoutflow beforefinancing (376,126) (252,223) (671,438) Financing 475,340 995,930 1,001,599 ---------- ---------- --------- (Decrease)/Increase in cashin the period(note 4) 99,214 743,707 330,161 ---------- ---------- --------- Notes to the Interim Statement 1. Basis of preparationThe interim report has been prepared on the basis of the accounting policies setout in the Company's financial statements for the period ended 30 September2004. The financial information set out in this statement relating to the periodended 30 September 2004 does not constitute statutory accounts for that period.Full audited accounts in respect of that financial period (which received anunqualified audit opinion and did not contain a statement under Section 237(2)or (3) of the Companies Act 1985) have been delivered to the Registrar ofCompanies. The Directors are satisfied that the Group has adequate resources to continue tooperate for the foreseeable future. For this reason they continue to adopt the"going concern" basis for preparing the accounts. The interim report has beenapproved by the Directors and is unaudited. Comparative figures for the six months ended 31 March 2004 are extracts from theinterim report for that period and are also unaudited. 2. Loss per shareLoss per share has been calculated on the attributable loss for the period andthe weighted average number of shares in issue during the period. Six months to 31 March Six months to 31 March Twelve months 2005 2004 to Unaudited Unaudited 30 September 2004 --------- --------- -------- Loss for theperiod (£) (314,347) (190,672) (861,081)Weightedaverageshares 42,629,883 35,796,093 38,043,359in issueBasic lossper (0.7) (0.5) (2.3)share --------- --------- --------(pence) The loss attributable to ordinary shareholders and the weighted average numberof ordinary shares used for the purpose of calculating diluted earnings pershare, are identical to those used to calculate the basic earnings per ordinaryshare. This is because the exercise of share warrants would have the effect ofreducing the loss per ordinary share and is therefore not dilutive under theterms of FRS 14. 3. Reconciliation of operating loss to net cash outflow from operatingactivities Six months to 31 Six months to 31 March 2004 Twelve months March 2005 Unaudited to Unaudited 30 September 2004 £ £ £ --------- --------- -------- Operating (324,144) (198,137) (881,744)lossDepreciationcharge 1,742 2,353 3,864Intangiblefixed assetswritten off 95,616 46,585 606,024(Increase)Decrease/ in (20,601) (6,838) (42,191)debtorsIncrease/(Decrease) in 98,994 106,895 24,597creditors --------- --------- -------- Net cashoutflow fromoperatingactivities (148,393) (49,142) (289,450) --------- --------- -------- 4. Reconciliation of net cash outflow to movement in net funds Six months to 31 March 2005 Six months to 31 Twelve months Unaudited March 2004 30 September Unaudited 2004 £ £ £ ---------- ---------- --------- Increase/(Decrease) in net 99,214 743,707 330,161cash in theperiodOpening netfunds 557,666 227,505 227,505 ---------- ---------- --------- Closing netfunds 656,880 971,212 557,666 ---------- ---------- --------- 5. Interim report Copies of this interim report will be sent to all shareholders and are availablefrom Tertiary Minerals plc, Sunrise House, Hulley Road, Macclesfield, Cheshire,SK10 2LP, United Kingdom. This information is provided by RNS The company news service from the London Stock Exchange