16th May 2007 09:19
Alba Mineral Resources PLC16 May 2007 Alba Mineral Resources PlcFinal results for the year ended 30 November 2006 CHAIRMAN'S STATEMENT The results for Alba Mineral Resources plc (the "Company", and collectively withits Subsidiary Companies, the "Group") cover the year ended 30 November 2006.They incorporate the results of its subsidiary companies Aurum Mineral ResourcesLimited ("Aurum"), Mauritania Ventures Limited ("MVL") and Alba MineralResources Sweden AB (collectively the "Subsidiary Companies"). INTRODUCTION Aurum, holds, or has applied for, exclusive rights to explore a portfolio ofmineral exploration properties. These are primarily nickel and gold explorationprojects in Scotland and Ireland, which are at different stages of development,from conceptual exploration targets to more advanced drill-ready projects. The Company has acquired nine exploration licences in Sweden, which form part ofa collaboration Agreement with Altius Minerals Corporation (Altius) of Canadawhereby Altius subscribed for 1,250,000 shares in the company at 8p per shareraising a total of £100,000. The Company also co-formed MVL to acquire exploration permits in Mauritania andprospect for uranium and Iron Oxide-Copper-Gold (IOCG). Three permits have beengranted and ten are pending. Ground-based exploration commenced after theyear-end on the three permits currently held. The Company was admitted to the AIM market of the London Stock Exchange on 4April 2005 after successfully raising £1,050,000 (before expenses) andsubsequently raised a further £504,600 (before expenses) by the placing of6,307,500 ordinary shares at 8p per share on 22 August 2006. REVIEW OF ACTIVITIES The Company announced on 27 April 2007 that it was continuing to seek additionalsources of funds to enable it to pursue its exploration programmes. The "Reviewof Activities" set out below assumes that such funds are made available to theCompany. The Company has, where possible, been actively exploring and enhancing itsunderstanding of the Group's nickel-copper-platinum group minerals (PGM) andgold licences that it holds in Scotland and Ireland. The Group's activitieshave principally focused on its nickel-copper-PGM prospect at Arthrath, nearAberdeen in Scotland where orientation geochemical and geophysical samplingprogrammes have been undertaken. The verification programme drilling resultsfrom this project have been encouraging and demonstrate the size of themineralizing system and highlight the potential for higher grades within thelarge, poorly explored area over which the Group has an interest. In addition, a detailed electromagnetic survey indicates the presence of anumber of moderate and weak electromagnetic conductors, which confirm theCompany's interest in the area as a significant regional target. The Boardbelieves that this project has now sufficiently progressed to enable it toexamine and evaluate the various options available to it to pursue furtherdetailed exploration. Four gold and silver licences have been awarded to the Company by the CrownMineral Agent at Aberfeldy and the Ochil Hills (both Perthshire), Kimelford(Argyllshire) and over the Arthrath project area in Aberdeenshire. Initialresearch on gold mineralization in the first three areas is promising andfieldwork will commence during 2007. Fieldwork over the Arthrath area will beconducted together with our other ongoing exploration activities. The Group has also undertaken exploration at the Bohaun (Co. Galway), LoughGowna (Cos. Longford and Leitrim) and North Limerick properties in Ireland.Positive initial exploration results from a rock sampling programme confirmedBohaun as a prospective gold target with high-grade potential. The Group intendsto conduct detailed infill-sampling, mapping, soil sampling and prospecting tofurther assess this exciting project and the results will be published in duecourse. Initial planning, permitting and environmental investigations will runin parallel as the prospects develop during 2007. The work programmes at LoughGowna and North Limerick are ongoing. In Sweden technical research identified a number of nickel sulphide explorationtargets, which show significant merit. As a result of these investigationsapplications for nine new exploration licences, primarily for nickel-copper-PGM,were made with the Company successfully being awarded eight in late 2006 and oneafter the year end. These licence areas offer the Company a significantopportunity to expand operations in a new geographical area. Field-basedexploration will take place over the next year and we look forward to reportingon progress. Our activities in Mauritania represent Alba's most significant development overthe last year where, following the establishment of a jointly owned company, wehave to date acquired three uranium exploration permits totaling approximately4,500 km2 of prospective ground. Target generation and ground acquisition wasconducted based on known mineral occurrences and favourable geology. Anadditional three uranium permits are pending in adjacent areas, together withfive permits in the south of the country for iron oxide-copper-gold stylemineralization and a further two in the north of the country, which cover thesame ground as two of the outstanding uranium permits. OUTLOOK The Group is now a committed junior explorer and developer with a diversifiedexploration portfolio focused on the margins of the Atlantic Ocean. The Group'soverall corporate and exploration strategy is to develop a series ofwell-researched and promising exploration properties which will be developedeither in the Group's own right or in conjunction with other parties. The Company, although now focused as a uranium and nickel junior explorer, willcontinue to evaluate additional cost effective projects and proposals that theBoard believes have the potential to add value to the Company. As part of this new focus the Board believes in developing not only a strongportfolio of primary projects, but also a series of supplementary explorationprojects. The rationale behind this approach is to limit the Company's risk ona particular commodity, or the political or climatic restrictions associatedwith a geographical area. On 3 January 2007 the Company announced that the exploration efforts on itsexisting project portfolio would be within the constraints of the financialresources available and that the Company would be seeking to raise additionalfunds to actively pursue and explore these existing projects. On 27 April 2007 the Company announced that it is continuing to seek additionalfunding to pursue these objectives and until this funding is in place theCompany will, in the short term, downgrade active fieldwork exploration on theexisting licences and permits, whilst maintaining the portfolio of assets. Albawill continue the programme of desktop research, analysis and studies using itsexisting in-house team. Michael Nott, Chairman 14 May 2007 CONSOLIDATED PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 30 NOVEMBER 2006 2006 2005 £ £Turnover from continuing operations - - Cost of sales - - Gross profit - -Administrative expenses (388,892) (213,445) Operating loss (388,892) (213,445) Interest receivable and similar income 15,860 20,269 Loss on ordinary activities before taxation (373,032) (193,176)Tax on loss on ordinary activities - - Loss on ordinary activities after taxation (373,032) (193,176)Minority interests 7,282 - Retained loss for the year transferred to reserves (365,750) (193,176) Loss per ordinary 1p share Basic and diluted 0.59 pence 0.47 pence CONSOLIDATED BALANCE SHEET30 NOVEMBER 2006 2006 2005 £ £Fixed assetsIntangible fixed assets 750,315 454,077Tangible fixed assets 4,439 630 754,754 454,707Current assetsDebtors 158,062 63,076Cash at bank and in hand 507,568 653,764 665,630 716,840 Creditors: amounts falling due within one year (280,767) (187,219) Net current assets 384,863 529,621 Total assets less current liabilities 1,139,617 984,328 Capital and reservesCalled up share capital 666,201 603,126Share premium account 790,133 374,887Profit and loss account (558,926) (193,176)Merger reserve 200,000 200,000Foreign exchange revaluation reserve (509) (509)Equity shareholders' funds 1,096,899 984,328Minority interest 42,718 - 1,139,617 984,328 CONSOLIDATED CASH FLOW STATEMENTFOR THE YEAR ENDED 30 NOVEMBER 2006 2006 2005 £ £Net cash outflow from operating activities (351,682) (54,893) Returns on investments and servicing of financeInterest received 15,860 20,269 15,860 20,269 TaxationUK corporation tax - - - - Capital expenditure and financial investmentPayments for intangible assets (333,118) (235,365)Purchase of tangible fixed assets (5,577) (708) (338,695) (236,073) AcquisitionsPurchase of subsidiary undertakings (57,299) -Cash/(net overdrafts) acquired with subsidiary undertakings 107,299 (3,552) 50,000 (3,552) FinancingIssue of ordinary share capital net of costs 478,321 928,013 478,321 928,013 (Decrease)/increase in cash in the period (146,196) 653,764 NOTES 1. Basis of preparation The financial information set out above does not constitute the Group'sstatutory accounts within the meaning of section 240 of the Companies Act 1985.The balance sheet at 30 November 2006 and the profit and loss account and cashflow statement for the year then ended have been extracted from the Group'saudited financial statements. The auditors report on those financial statements is unqualified and does not contain statements under s.237(2) or (3) CompaniesAct 1985.These financial statements will be delivered to the Registrar ofCompanies and shareholders in due course. 2. Taxation No charge for corporation tax for the period has been made due to the expectedtax losses available. 3. Loss per share Basic loss per share is calculated by dividing the loss attributed to ordinaryshareholders of £365,750 by the weighted average number of shares of 62,057,963in issue during the year. The diluted loss per share calculation is identicalto that used for basic loss per share as the exercise of warrants would have theeffect of reducing the loss per ordinary share and is therefore not dilutiveunder the terms of Financial Reporting Standard 14 "Earnings per Share". Enquiries: Michael Nott, Alba Mineral Resources Plc 020 7495 5326Liam Murray, City Financial Associates Limited 020 7090 7800 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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