RNS Number:4074S
Angus & Ross PLC
24 November 2003
ANGUS & ROSS PLC ("Angus & Ross")
INTERIM STATEMENT
The six month period ended 31st August was one of consolidation of the
significant change of direction the company had embarked on and announced
earlier in the year. From having one large tantalum project in Greenland the
company now has a broad spread of other mineral licences in Australia, Brazil,
and Canada mainly prospective for gold.
In Australia, the Top Camp (Cloncurry mineral field, Mount Isa district),
gold-copper prospect is ready to be drilled but as a result of the demand for
rigs and crews we have had to accept a delay of a few weeks while the contracted
drillers complete an extended programme on an adjacent property.
Also in Australia, at Rutherfords Table, (Eastern Queensland epithermal gold
belt) where this year's sampling programme has confirmed the viability of mining
the alluvials for small amounts of gold, a mining plan has been submitted to the
Queensland Department of Mines with the objective of starting production in
early 2004. In addition, and now that transfer of title to the mining leases is
complete (see below), drilling of the main target (a potentially large
epithermal gold deposit) will commence as soon as drill rig availability allows.
Another prospect in Queensland ( the Warroo ) that has the potential for
sizeable deposits of gold has been presented to Placer Dome to consider for a
joint venture.
In Brazil, a report by an independent geologist has confirmed the prospectivity
for gold on the Company's licenses in the state of Rio Grande del Norte. As a
result it is intended that a regional survey, as well as trench sampling, will
be carried out by the end of 2003. In order to concentrate our efforts and
despite the obvious attractions of this property, we are investigating joint
venture proposals with larger local companies.
In Canada, our subsidiary, Angus and Ross Canada Ltd, has purchased a 50.1%
interest in the tantalum-lithium bearing Separation Lake claim block in
North-west Ontario from Tantalum Mining Corporation of Canada ("Tanco"), a
subsidiary of Cabot Corporation. The 40% stake in Angus & Ross Canada Ltd
received by Tanco as payment for this licence is currently being transferred to
us in exchange for the allotment of 400,000 new Angus & Ross shares and this is
expected to be formally completed in the next few days. Cabot has also agreed to
discuss multi-year off-take agreements for any tantalum produced from projects
that Angus & Ross may develop at Separation Lake.
In Greenland the Motzveldt project has been placed on hold and the drilling rig
and camp removed in accordance with good environmental practice. This was
accomplished at a substantial saving to the previously reserved funds of
#75,000.
The EGM in June 2003 approved the acquisition of Queensland Tantalite Pty
Limited and related licences from the Australian vendors. In recent days it has
been formally confirmed that all licence transfers have been received and that
the entire issued share capital of Queensland Tantalite has been transferred to
the Company. The first payment of 5 million shares has therefore been authorised
by the board. A further two tranches of 5 million shares each are payable either
on the start of cash flow from the licences acquired or when the Company's
capitalisation exceeds #10 million. Following the completion of the Australian
deal Professor Ian Plimer and Mr Adrian Day have joined the board of Angus &
Ross plc.
After three years with Angus & Ross Mr Chris Parry is leaving the company at the
end of November for a senior mine management position in a diamond mine in
Africa. On behalf of shareholders I would like to record our thanks for his hard
work over the last few years and to wish him well in his new role.
In March and July two small financings at 5p and 5.5p raised a total of #500,000
and have enabled the company to carry out the activities described above.
The last six months have been busy with the necessary preparatory work for the
active programme of exploration in both Australia and Brazil that is about to
start. The process of registering titles has taken time; however there is much
consolation in having properly registered title in areas of the world with low
sovereign risk.
The next few months promise to be the most active in the company's history and
shareholders will be kept fully informed.
R.M. Andrews
Chairman
24 November 2003
For Further Information contact:
Neil Boom
Gresham Communications
0207 404 9307
Angus & Ross plc
Profit and Loss Account for the six months ended 31 August 2003
6 months to 6 months to 12 months to
31 August 2003 31 August 2002 28 February 2003
Unaudited Unaudited Audited
# # #
Turnover - - -
Depreciation of capitalised
exploration costs (193,956) (164,205) (413,392)
Exploration costs written off (143,096) (23,184) (87,105)
Administrative expenses (109,698) (98,254) (258,172)
----------- ------------ ------------
Operating loss (446,750) (285,643) (758,669)
Amounts written off investments - (323) (612)
Interest received 1,180 4,832 7,458
----------- ------------ ------------
Loss on ordinary activities
before taxation (445,570) (281,134) (751,823)
Tax on loss on ordinary - - -
activities
----------- ------------ ------------
Deficit brought forward (1,544,446) (792,623) (792,623)
----------- ------------ ------------
Deficit carried forward (1,990,016) (1,073,757) (1,544,446)
----------- ------------ ------------
Basic loss per share 1.23p 1.02p 2.52p
----------- ------------ ------------
Weighted average number of
shares in issue 36,115,966 27,688,640 29,783,676
Notes
1 This interim statement for the six months ended 31 August 2003 is
unaudited and was approved by the directors on 21 November 2003.
The financial information set out above does not constitute the
statutory accounts within the meaning of Section 240 of the
Companies Act 1985. Such accounts relating to the year ended 28
February 2003 on which the auditors made an unqualified report
have been filed with the Registrar of Companies.
2 No dividends were paid or proposed in respect of the six months
ended 31 August 2003.
3 This Interim Statement is being sent by post to all registered
shareholders. Copies are available to the public, free of charge,
from the company's offices at St. Chad's House, Piercy End,
Kirkbymoorside, York YO62 6DQ, for a period of one month from the
date of this announcement.
4 The diluted loss per share has not been disclosed because
reflecting the outstanding
options produces a loss per share which is lower than the basic
loss per share.
5 The actual number of shares in issue at 31 August 2003 was
41,499,403. ( 28 February 2003 - 31,725,923, 31 August 2002 -
30,875,923)
Angus & Ross plc
Balance Sheet as at 31 August 2003
6 months to 6 months to 12 months to
31 August 2003 31 August 2002 28 February 2003
Unaudited Unaudited Audited
# # #
Fixed assets
Tangible assets 535,855 931,348 731,197
----------- ----------- ------------
535,855 931,348 731,197
Current assets
Debtors 76,377 15,956 35,684
Investments - 289 -
Cash at bank 249,237 220,308 102,506
----------- ----------- ------------
325,614 236,553 138,190
Current liabilities
Creditors: amounts falling due
within one year (80,249) (65,913) (68,088)
----------- ----------- ------------
Net current assets 245,365 170,640 70,102
Provisions - (75,000) (75,000)
----------- ----------- ------------
Net assets 781,220 1,026,988 726,299
----------- ----------- ------------
Capital and reserves
Called up share capital 414,994 308,759 317,259
Share premium account 2,356,242 1,791,986 1,953,486
Profit and loss account (1,990,016) (1,073,757) (1,544,446)
----------- ----------- ------------
Shareholders' funds 781,220 1,026,988 726,299
----------- ----------- ------------
Angus & Ross
plc
6 months to 31/8/03
---------
Cash flow
statement
6 months 6 months to 12 months
to to
31-Aug-03 31-Aug-02 Feb-03
Unaudited Unaudited Audited
Notes # # #
Net cash flow from operating A (352,368) (144,392) (365,972)
activities
Returns on investments and servicing of finance
Interest 1,180 4,832 7,458
received
1,180 4,832 7,458
Capital
expenditure
Payments to acquire tangible fixed assets 205 126,247 177,051
(205) (126,247) (177,051)
Net cash outflow before management of
liquid
resources and (351,393) (265,807) (535,565)
financing
Financing
Issue of ordinary share capital, after costs of 500,491 74,400 244,400
issue
Increase in cash for the B 149,098 (191,407) (291,165)
period ======= ======= =======
A Reconciliation of operating loss to net cash outflow from operating activities
Operating loss (446,750) (285,643) (758,669)
(Increase)/ Decrease in debtors (40,694) (7,724) (27,452)
Increase/ (Decrease) in creditors within one year 14,529 (15,739) 4,481
Depreciation 195,547 164,714 415,668
Deferred exploration costs written off - - -
Decrease in provisions (75,000) - -
------- ------- -------
Net cash outflow from operating activities (352,368) (144,392) (365,972)
------ ======= ======= =======
B Analysis of net funds
1 March Cash Other non-cash 31 August
2003 Flow Changes 2003
Cash in hand and at bank 102,506 146,731 - 249,237
Overdrafts (2,367) 2,367 - -
Net funds 100,139 149,098 - 249,237
This information is provided by RNS
The company news service from the London Stock Exchange
END
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