RNS Number:9008S
Tertiary Minerals PLC
05 December 2003
Tertiary Minerals plc
Announcement of Unaudited Financial statements
for the ended 30 September 2003
Tertiary Minerals plc - Chairman's Statement - Year ended 30th September 2003
During 2003 the prices of a number of metals have increased substantially with
copper and nickel recently reaching 5-year highs and gold regaining its lustre
with a price around $400 per ounce today. This has improved sentiment towards
the mining and exploration sector and enabled the Company to raise further funds
and increase the tempo of its exploration for gold and base-metal projects in
politically stable Scandinavia.
Progress has been made in acquiring new and exciting exploration projects and
advancing these to the stage where the Company is able to focus on a limited
number of drill-stage projects to maximise the opportunity for discovery and
delineation of mineral resources and the creation of shareholder value. Drilling
at NottrTM?sk in 2003 resulted in the discovery of a new zone of nickel
mineralisation and although of low nickel tenor, this discovery underlines the
abilities of our exploration team and the high prospectivity of the project and
has encouraged us to drill test a number of new targets at NottrTM?sk this
coming winter.
In last year's Annual Report we highlighted a programme to acquire and explore
for "Olympic Dam" style iron oxide-copper-gold (IOCG) deposits in Sweden and
Finland. This project has gathered pace with new project acquisitions and the
definition of drill targets. The first IOCG target to be drill tested this
winter is Ahmavuoma in Sweden. Drilling is planned to extend and better define a
known zone of copper-gold-cobalt mineralisation and to test other high priority
targets within a broader mineralised area.
More recently we announced the acquisition of the KaaresselkTM? gold project in
Finland by claim application, after two years patient monitoring of previous
tenement holdings which have now lapsed. This acquisition illustrates the
benefits of the Company's long-term commitment to Scandinavia and its ability to
cost-effectively acquire advanced exploration projects. A number of significant
zones of gold mineralisation have been outlined at Kaaresselka in previous work
done by the Geological Survey of Finland. We are now in the process of
evaluating the data from that work in order to plan drilling programmes to
define resources and test for extensions.
This past year the Company's share price has suffered as stock overhangs in the
tantalum market have undermined our solid, value-adding progress on the
Ghurayyah tantalum project in Saudi Arabia. Notwithstanding regional political
uncertainties, however, I am confident that recent improvements in the tantalum
market will see this trend reversed. Tantalum is not traded on terminal markets
and market trends are not transparent to the investing public, who would not
necessarily be aware that the tantalum market is, in fact, recovering strongly
and stocks levels have returned to normal at end-user level. Demand growth is
being led by the more widely appreciated growth in the sales of consumer
electronics which account for 80% of world tantalum consumption in the form of
capacitors, an essential component in DVD's, mobile phones, laptop computers,
games consoles and digital cameras.
The Company's world-class Ghurayyah tantalum project is well positioned to take
advantage of this market recovery. During the year a detailed economic and
technical scoping study was completed, confirming the potential of Ghurayyah to
profitably supply substantial amounts of tantalum and niobium over many decades.
The Company intends to seek external funding for feasibility studies and the
future development of Ghurayyah. In this way shareholders can participate in the
valuable upside of this project with little further financial exposure whilst
the Company focuses future expenditure on its exciting exploration projects in
Scandinavia.
To fund its exploration expenditure the Company has announced today that it has
raised #438,750 (before expenses) through a private placement of 4,875,000 new
ordinary 1 pence shares at a price of 9 pence per share.
The loss associated with the Group's exploration activities for the year ended
30 September 2003 was #397,037 after interest of #7,992, administration expenses
of #225,577 and #179,452 written off for expenditure on abandoned exploration
projects.
I would like to thank my fellow shareholders and our hardworking and
enthusiastic staff for their support during the past year. As we move forward
with further financial resources in place I believe that the Company is now
firmly established as an attractive vehicle for investment in the expanding
resource sector and the Directors look forward to delivering a year of progress
and growth.
Patrick L. Cheetham
Executive Chairman
Further Information:
Patrick Cheetham, Tertiary Minerals Plc. Tel: 01625-626203.
Ron Marshman/John Greenhalgh, City of London PR Ltd. Tel: 020-7628-5518
Web-site: www.tertiaryminerals.com
Tertiary Minerals plc
Unaudited
Consolidated Profit and Loss Account
for the year ended 30 September 2003
2003 2002
# #
Exploration costs written off 179,452 15,923
Administrative expenses 225,577 266,903
--------- ---------
Operating loss (405,029) (282,826)
Interest receivable 7,992 9,604
--------- ---------
Loss on ordinary activities before taxation (397,037) (273,222)
Tax on profit on ordinary activities - -
--------- ---------
Loss for the financial year (397,037) (273,222)
--------- ---------
Loss per share - basic (pence) (1.3) (1.1)
--------- ---------
All amounts relate to continuing activities.
Tertiary Minerals plc
Unaudited Balance sheets
for the year ended 30 September 2003
Group Company
2003 2002 2003 2002
# # # #
Fixed assets
Intangible assets 1,180,396 1,065,724 - -
Tangible assets 3,879 9,542 101 865
Investments - - 224,889 224,889
--------- -------- -------- --------
1,184,275 1,075,266 224,990 225,754
--------- -------- -------- --------
Current assets
Debtors 28,392 67,772 1,552,762 1,220,258
Cash at bank and in 227,505 393,760 220,863 382,401
hand --------- -------- -------- --------
255,897 461,532 1,773,625 1,602,659
Creditors: amounts
falling due 37,851 111,623 21,137 26,064
within one year --------- -------- -------- --------
Net current assets 218,046 349,909 1,752,488 1,576,595
--------- -------- -------- --------
Total assets less
current 1,402,321 1,425,175 1,977,478 1,802,349
liabilities --------- -------- -------- --------
Capital and
reserves
Called up share 315,460 276,652 315,460 276,652
capital
Share premium 2,053,728 1,766,836 2,053,728 1,766,836
account
Merger reserve 131,096 131,096 131,096 131,096
Profit and loss (1,097,963) (749,409) (522,806) (372,235)
account --------- -------- -------- --------
Shareholders funds 1,402,321 1,425,175 1,977,478 1,802,349
--------- -------- -------- --------
Tertiary Minerals plc
Unaudited
Consolidated Cash Flow Statement
for the year ended 30 September 2003
2003 2002
# #
Net cash outflow from operating activities (272,464) (248,495)
Returns on investment and servicing of finance
Interest received 7,994 9,604
-------- ---------
Net cash outflow from operating activities after
returns (264,470) (238,891)
on investments and servicing of finance -------- ---------
Capital expenditure and financial investment
Purchase of intangible fixed assets (230,933) (486,399)
Purchase of tangible fixed assets (139) (4,802)
Sale of tangible fixed assets - 2,702
-------- ---------
Net cash outflow from capital expenditure and
financial (231,072) (488,499)
investment -------- ---------
Financing
Issue of share capital (net of expenses) 325,700 825,162
Exchange differences 3,587 2,253
-------- ---------
Net cash inflow from financing 329,287 827,415
-------- ---------
Increase/(Decrease) in cash (166,255) 100,025
-------- ---------
Notes:
1. 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 2003 or
2002. The financial information for 2002 is derived from the Statutory
Accounts for 2002, which have been delivered to the Registrar of Companies.
The auditors have reported on the 2002 accounts; their report was
unqualified and did not contain statements under section 237 of the
Companies Act 1985. The Statutory Accounts for 2003 will be finalised on the
basis of the financial information presented by the directors in this
announcement and will be delivered to the Registrar of Companies following
the Company's annual general meeting.
2. Accounting policies
The following accounting policies have been applied consistently in
dealing with items which are considered material in relation to the
Company's financial statements.
Basis of Preparation
The financial statements have been prepared in accordance with
applicable accounting standards and under the historical cost accounting
rules modified to include the revaluation of certain assets.
Basis of consolidation
The Group financial statements consolidate the financial statements of
Tertiary Minerals plc and its subsidiary undertakings using the
acquisition method.
The results of subsidiaries acquired or sold during the year are
consolidated from or to the date on which effective control passes.
In accordance with section 230 (4) of the Companies Act 1985, Tertiary
Minerals plc is exempt from the requirement to present its own profit
and loss account. The amount of the loss for the financial year recorded
within the financial statements of Tertiary Minerals plc is #150,572
(2002: #194,081).
Depreciation
Depreciation is provided by the Group on all tangible fixed assets, at
rates calculated to write off the cost or valuation, less estimated
residual value, of each asset evenly over its expected useful life, as
follows:
Fixtures and fittings 25% to 33% per annum.
Intangible assets - exploration and development
Accumulated costs incurred in relation to separate areas of interest
(which may comprise more than one exploration licence or exploration
licence applications) are capitalised and carried forward where:
(a) such costs are expected to be recouped through successful
development and exploration of the area, or alternatively by its
sale; or
(b) exploration and/or evaluation activities in the area have not yet
reached a stage which permits a reasonable assessment of the
existence or otherwise of economically recoverable reserves, and
active and significant operations in, or in relation to the areas
are continuing.
An annual review is carried out by the Directors to consider whether any
exploration and development costs have suffered impairment in value and
if necessary provisions are made accordingly.
Accumulated costs in respect of areas of interest, which have been
abandoned, are written off to the profit and loss account in the year in
which the area is abandoned.
Costs in respect of reconnaissance exploration (where the Group has no
licences or licence applications) are written off to the profit and loss
account in the year in which the reconnaissance exploration took place.
Exploration and development costs are carried at the lower of cost and
expected net realisable value.
Deferred taxation
Deferred taxation, if applicable, is provided in full in respect of
taxation deferred by timing differences between the treatment of certain
items for taxation and accounting purposes. No provision for deferred
taxation has been made in these accounts.
Deferred tax assets are recognised to the extent that they are regarded
as recoverable.
Foreign currencies
For consolidation purposes, the assets and liabilities and the profit
and loss accounts of overseas subsidiary undertakings and associated
undertakings are translated at the closing exchange rates. Exchange
differences arising on these translations are taken to reserves, net of
exchange differences arising on related foreign currency borrowings.
Leasing and hire purchase commitments
Rentals applicable to operating leases where substantially all the
benefits and risks of ownership remain with the lessor are charged to
the profit and loss account on a straight-line basis
3. Segmental Operating Net Operating Net
analysis loss assets loss assets
2003 2003 2002 2002
# # # #
United 150,571 1,752,589 194,081 1,577,460
Kingdom
Overseas 246,466 (350,268) 79,141 (152,285)
-------- --------- -------- --------
397,037 1,402,321 273,222 1,425,175
-------- --------- -------- --------
In the opinion of the directors, the Group's activities represent one
class of business.
A split of overseas segmental information is not considered to be
meaningful by the directors.
4. Share 2003 2003 2002 2002
capital No. # No. #
Authorised
Ordinary 150,000,000 1,500,000 150,000,000 1,500,000
shares of 1p ---------- --------- ---------- --------
each
150,000,000 1,500,000 150,000,000 1,500,000
---------- --------- ---------- --------
Allotted,
called up
and fully
paid
Ordinary 31,546,093 315,460 27,665,260 276,652
shares of 1p ---------- --------- ---------- --------
each
31,546,093 315,460 27,665,260 276,652
---------- --------- ---------- --------
During the year the following share issues took place.
755,833 12 pence warrants coverted to 1 penny ordinary shares for total
consideration of #90,700.
A placement of 3,125,000 1 penny ordinary shares for a total
consideration of #250,000.
All shares rank pari passu and are all 1 penny ordinary shares.
Warrants are issued for nil consideration and are exchangeable on a one
for one basis for each ordinary share of 1 penny at the exercise price
on the date of conversion.
5. Warrants granted
Unexercised Issue dates Exercise price Number Expiry Dates
warrants 21/05/02 20p 300,000 20/05/05
6. Reconciliation of operating loss to net cash outflow from operating
activities
2003 2002
# #
Operating loss (405,029) (282,826)
Depreciation and loss on disposal of fixed 5,802 5,615
assets
Intangible fixed assets written off 161,157 10,003
Decrease/(Increase) in debtors 39,378 (29,457)
(Decrease)/Increase in creditors (73,772) 48,170
--------- ---------
Net cash outflow from operating activities (272,464) (248,495)
--------- ---------
7. Annual Report
The Company's 2003 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 or from
Tertiary Minerals plc, Sunrise House, Hulley Road, Macclesfield,
Cheshire, SK10 2LP for at least 30 days from the date of publication.
This information is provided by RNS
The company news service from the London Stock Exchange
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