Pathfinder Minerals Plc Half Yearly Report (8460S)

TIDMPFP

RNS Number : 8460S

Pathfinder Minerals Plc

29 September 2014

Pathfinder Minerals Plc

("Pathfinder", "the Company" or "the Group")

INTERIM FINANCIAL STATEMENTS

For the six months ended 30 June 2014

CHAIRMAN'S STATEMENT

Introduction

This report for the six months ended 30 June 2014 is published just twelve weeks after my statement accompanying the 2013 annual report. I provided in the annual report a detailed overview of the status of the legal proceedings in Mozambique for which we continue to await material developments.

Legal proceedings in Mozambique

As I have said previously, it is impossible to second-guess the timetable of the principal proceedings ongoing in Mozambique - being Pathfinder's claims for recognition in the Mozambique Supreme Court of the London judgments (the "First and Second Claims for Recognition"); and I should like to remind shareholders that our legal advisers estimate that judgment could be forthcoming at any time between now and approximately two years' time. It was however encouraging to note last month that both the First and Second Claims for Recognition, having been filed in March and August 2013 respectively, have now both been served on the Defendants (autumn last year in the case of the First Claim; and last month in the case of the Second); and have both been subject of final written arguments. It is reassuring to know that the Supreme Court's wheels are turning, however slowly. We are advised that the claims will be decided by the Supreme Court on the papers; and that there will be no oral argument.

By way of reminder, the claims comprise a number of orders for costs (totalling GBP1,106,000) by the English court; and certain declarations by the English court to the effect that our subsidiary, IM Minerals Limited ("IMM"), did indeed validly acquire its 99.99 per cent. stake in our Mozambique licence-holding subsidiary, Companhia Mineira de Naburi S.A.R.L ("CMDN"). The reason these declarations were essential to Pathfinder was that IMM needed to demonstrate beyond any doubt that it was (and should now still be) the owner of CMDN. General Veloso and Diogo Cavaco have continually argued that they were entitled to request the transfer of the mining licences to their ownership because Pathfinder never validly owned the company from which they were taken. It has been established as a matter of law that this is not the case. As well as seeking to have the English judgments recognised in the Mozambique courts, Pathfinder has drawn them to the attention of the Government of Mozambique. Subject to the Supreme Court's recognition of the orders for costs, Pathfinder will take prompt steps to enforce them against the assets of General Veloso and Diogo Cavaco.

Financial results and current financial position

The Group's Statement of Financial Position shows net assets at 30 June 2014 of GBP1.6 million (30 June 2013: GBP2.0 million; 31 December 2013: GBP2.2 million). The assets are held largely in the form of cash deposits totalling GBP1.6 million at 30 June 2014 (30 June 2013 and 31 December 2013: GBP2.1 million). The Board continues to estimate that the Company has sufficient reserves for the foreseeable future.

The Income Statement shows a loss of GBP0.6 million for the six months ended 2014 (six months ended 30 June 2013: GBP1.7 million). Since the Company has been prevented from conducting any activity relating to mining, the whole of this loss can be attributed to the Company's attempts to recover its expropriated licences.

Outlook

The board continues to work towards achieving a resolution of its issues concerning asset ownership; and thereafter to contribute to the ongoing development of those assets in Mozambique. We are committed to recovering value for shareholders who have been deprived of the value of these assets and will keep shareholders updated as and when material developments occur.

Henry Bellingham

Chairman

29 September 2014

PATHFINDER MINERALS PLC