3rd Jun 2011 07:05
03 June 2011AIM: KEFI KEFI Minerals Plc ("KEFI Minerals" or the "Company") Preliminary Annual Results for the 12 months ended 31 December 2010 Notice of Annual General Meeting
KEFI Minerals, the AIM-quoted gold and copper exploration company, is pleased to announce its audited results for the year ended 31 December 2010.
Highlights
* The Company completed private placements that raised £664,000 at 1.6p per
share in January 2010 and £625,000 1.25p per share in October 2010.
* KEFI Minerals continued to progress effective exploration programmes that
aim to fast-track gold discovery and eventual development of new mines in
Turkey and Saudi Arabia. * The loss for the half-year period totalled £687,000 and reflects the Company's conservative accounting policy of writing off all expenditure until a commitment to develop a project is made by the Board.
Post Period Highlights
* Exploration licence application procedure in Saudi Arabia continued with a
revised Exploration Technical Report ("ETR") formally submitted and
accepted by the relevant government department. The Company understands
that the expected first Exploration Licence is undergoing final processing
procedures.
* The Company's Derinin Tepe (also known as Kizilcukur), Muratdag and Yatik
West projects (the "Properties") in western Turkey were sold to Ariana Resources plc. * In February 2011 the Company raised £1,300,000 via a placing at 5p per share.
The annual report and financial statements together with the Notice of AGM andProxy form will be despatched to shareholders on or before 07 June 2011. TheAnnual General Meeting will be held at the offices of BishopsgateCommunications Ltd, 3rd Floor, 3 London Wall Buildings, London Wall, LondonEC2M 5SY on 29 June 2011 at 11.00 a.m.Additional copies of the Annual Report and Accounts, Notice of AGM and ProxyForm may be requested directly from the Company and will be available followingdistribution to shareholders on the Company's website www.kefi-minerals.com.Further copies will be available from Fox-Davies Capital Limited, 1 TudorStreet, London EC2Y 0AH.
KEFI Minerals' Managing Director, Jeff Rayner, commented:
"We continue to progress exploration programmes that aim to fast-track gold andcopper discoveries and the eventual development of new mines. The recentlyannounced sale of projects in western Turkey is in line with our priorities. Weare further progressing the licence application procedure in Saudi Arabia andwill update shareholders with developments on this front in due course."
Enquiries:
KEFI Minerals www.kefi-minerals.com
Jeffrey Rayner +90 533 928 19 13
Fox-Davies Capital
Simon Leathers +44 203 463 5010
Bishopsgate CommunicationsNick Rome +44 20 7562 3350Michael KinironsManaging Director's Statement
KEFI Minerals Plc has continued to apply its proven exploration strategy to its projects in Turkey and in the Kingdom of Saudi Arabia. Targets at various prospects have been tested cost effectively and enabled the Company to move onto other prospects with a greater chance of exploration success.
The Company's current projects and licence applications are located in:
* Turkey, a country in which a number of world-class gold and base metals
deposits have been discovered during the past two decades; and
* Saudi Arabia, a country with a long history of mining that dates back over
5,000 years and set for a resurgence under modernised mining laws that
encourage investment.
Our team is very keen to commence field exploration in Saudi Arabia as soon as Exploration Licences are granted, which has unfortunately taken longer than expected.
Exploration Strategy
Our reputation has been built on treating safety, environment and community relations as a priority at all times.
KEFI Minerals' exploration strategy remains the same and is based on the following concepts:
* Combining strong international and local knowledge in exploration models
and techniques;
* Selecting areas within prospective stratigraphic and structural settings
with a high potential for gold mineralisation in particular;
* Exploring projects as a package rather than individual isolated prospects;
* Rapidly identifying, prioritising and assessing targets; and
* Creating effective working relationships and further developing knowledge
using an established local team.
The object of this strategy is to add value for shareholders by:
* Advancing our projects to resource stage through drilling; * Targeting resources of >1 million ounces of gold or copper equivalent through exploration; and
* Identifying and fostering high-quality joint venture opportunities, with
both international and local partners, in order to source capital and
spread financing risks.
KEFI Minerals is a small, dynamic company that has the flexibility to move quickly and become an early entrant in countries that are becoming attractive for mining investment and are suitably prospective.
Strategic Alliances
KEFI Minerals leverages its technical expertise and available funding by entering into strategic alliances.
KEFI Minerals has been recognised within the industry for its technicalabilities and the quality of its projects. This has led to the formation ofjoint ventures in Turkey with a wholly-owned subsidiary of Centerra Gold Inc.("Centerra Gold") and in Saudi Arabia with the Abdul Rahman Saad Al-Rashid &Sons Company Limited ("ARTAR"). These partnerships have allowed the Company to:
* expand its exploration activities in both countries, whilst reducing its
financial exposure; and
* retain the flexibility to be able to rapidly assess other opportunities in
the region.
Centerra Gold funded drilling programmes and other exploration activities atthe Artvin and Bakir Tepe Joint Ventures in Turkey. Following assessment ofresults from these programmes, Centerra Gold has elected not to continuefunding exploration at these projects and full ownership has reverted to KEFIMinerals. These joint ventures with Centerra Gold enabled both parties torapidly evaluate quality prospects while sharing the financial risk.
The primary target of the alliance with ARTAR is the discovery and development of >1 million ounce gold deposits in the under-explored Precambrian Arabian Shield of Saudi Arabia. KEFI Minerals is the operating partner with a 40% interest with ARTAR holding the remaining 60% and providing local support services.
Technical, commercial and administrative systems are provided to KEFI Minerals by EMED Mining Public Limited ("EMED Mining") on a cost-recovery basis, enabling KEFI Minerals to minimise overheads and focus its efforts on discovering economic mineral deposits.
KEFI Minerals is continuing to assess other opportunities in the region so thatour knowledge can be applied to further prospective areas with similar geology.These opportunities are likely to be undertaken with strategic partners,particularly those that we already have strong relationships with.
Funding
The equity funding provided by shareholders since the Company's admission toAIM in December 2006 is much appreciated. Additional funding provided byjoint-venture partners has enabled KEFI Minerals to leverage the equity fromour shareholders.EMED Mining remains a supportive shareholder and retains a 19% interest in KEFIMinerals. EMED Mining is owned primarily by a range of mining industryinvestment specialists, from Australia, Canada, South Africa, United States andthe United Kingdom.
KEFI Minerals completed private placements that raised £665,000 at 1.6p per share in January 2010 and £625,000 1.25p per share in October 2010.
The Company's share price strengthened considerably in late 2010 and a further placement was completed in February 2011 that raised £1,300,000 at 5p per share.
KEFI Minerals' share price has increased substantially over the past year to currently being more than 7p per share, with the Company's market capitalisation now approximately £20 million.
Outlook
Turkey and Saudi Arabia are both under-explored countries with excellent potential for discovery of major gold and copper mines. We will continue to progress effective exploration programmes that aim to fast-track gold discovery and eventual development of new mines.
Our team continues to strive towards these objectives with an appropriate focus on the trade-off between costs and the potential returns generated if our efforts are successful.
During 2011, our priorities are to:
* obtain approvals for our Exploration Licences in Saudi Arabia and commence
fieldwork; * continue to assess our projects in Turkey; and * generate new projects in Saudi Arabia, Turkey and neighbouring regions.
KEFI Minerals' prospects in Saudi Arabia are particularly exciting as manyareas we have applied for contain historical workings, some contain previoustrenching and shallow drilling with encouraging results from past explorationconducted by the USGS and BRGM. There is an excellent chance of rapid successonce these Exploration Licences are granted and field activities can proceed.Our exploration portfolio, combined with the very positive outlook for gold andcopper prices, provide an exciting opportunity to create exceptional value
forshareholders.Jeffrey RaynerManaging DirectorKEFI MINERALS PLC
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Year ended 31 December 2010 2010 2009 GBP'000 GBP'000 Revenue - - Exploration costs (247) (203) Gross loss (247) (203) Administrative expenses (604) (677) Share-based payments (16) (94) Share of loss from jointly controlled entity (230) (329) Other income 153 389 Negative goodwill 314 - Operating loss (630) (914) Foreign exchange loss (53) (46) Finance costs (4) (4) Loss before tax (687) (964) Tax (15) - Loss for the year (702) (964) Other comprehensive income: 44 41 Exchange differences on translating foreign (658) (923)operations 0.01 0.01
Total comprehensive loss for the year
Loss per share (GBP) The Company has taken advantage of the exemption conferred by section 408 ofCompanies Act 2006 from presenting its own statement of comprehensive income.Loss after taxation amounting to GBP0.6 million (2009: GBP2.3 million) has beenincluded in the financial statements of the parent company.
KEFI MINERALS PLC
STATEMENTS OF FINANCIAL POSITION
31 December 2010 The The The The Group Company Group Company 2010 2010 2009 2009 GBP'000 GBP'000 GBP'000 GBP'000 ASSETS Non-current assets Property, plant and equipment 27 - 42 - Intangible assets - - - - Fixed asset investments 181 182 2 2 208 182 44 2 Current assets Trade and other receivables 206 442 64 205 Cash and cash equivalents 539 530 322 319 745 972 386 524 Total assets 953 1,154 430 526 EQUITY AND LIABILITIES Equity attributable to owners of the Company Share capital 3,311 3,311 2,382 2,382 Share premium 1,697 1,697 1,413 1,413 Share options reserve 396 396 382 382 Foreign exchange reserve (207) - (251) - Accumulated losses (4,459) (4,344) (3,773) (3,743) Total equity 738 1,060 153 434 Non-current liabilities Share of loss in joint 95 - 150 - ventures 95 - 150 - Current liabilities Trade and other payables 120 94 127 92 120 94 127 92 Total liabilities 215 94 277 92 Total equity and liabilities 953 1,154 430 526
On 1 June 2011, the Board of Directors of KEFI Minerals plc authorized these financial statements for issue.
KEFI MINERALS PLC
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Year ended 31 December 2010
Share Share Share Accumulated Foreign Total capital premium losses exchange options reserve reserve GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 At 1 January 2009 1,296 1,347 256 (2,824) (292) (217) Loss for the year - - - (964) - (964) Other comprehensive - - - - 41 41income Recognition of share - - 141 - - 141based payments Exercise of warrants (15) 15 - Issue of share capital 1,086 121 - - - 1,207 Share issue costs - (55) - - - (55) At 31 December 2009 2,382 1,413 382 (3,773) (251) 153 Loss for the year - - - (702) - (702) Other comprehensive - - - - 44 44income Recognition of share - - 30 - - 30based payments Issue of share capital 929 375 - - - 1,304 Cancellation/forfeit - - (16) 16 - -of options/warrants Share issue costs - (91) - - - (91)
At 31 December 2010 3,311 1,697 396 (4,459) (207) 738The following describes the nature and purpose of each reserve within owners'equity:Reserve Description and purposeShare capital amount subscribed for share capital at nominal valueShare premium amount subscribed for share capital in excess of nominal value, net of allowable expensesShare options reserve reserve for share options granted but not exercised or lapsedAccumulated losses cumulative net gains and losses
recognised in the statement
of comprehensive income, excluding
foreign exchange gains within other
comprehensive incomeForeign exchange reserve cumulative net gains and losses recognised onconsolidationKEFI MINERALS PLC
COMPANY STATEMENT OF CHANGES IN EQUITY
Year ended 31 December 2010 Share Share Share Accumulated Total capital premium losses options reserve GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 At 1 January 2009 1,296 1,347 256 (1,457) 1,442 Loss for the year - - - (2,301) (2,301) Recognition of share based - - 141 - 141payments Exercise of warrants - - (15) 15 - Issue of share capital 1,086 121 - - 1,207 Share issue costs - (55) - - (55) At 31 December 2009 2,382 1,413 382 (3,743) 434 Loss for the year - - - (617) (617) Recognition of share based - - 30 - 30payments Issue of share capital 929 375 - - 1,304 Cancellation/forfeit of - - (16) 16 -options/warrants Share issue costs - (91) - - (91) At 31 December 2010 3,311 1,697 396 (4,344) 1,060
The following describes the nature and purpose of each reserve within owners' equity:
Reserve Description and purpose
Share capital amount subscribed for share capital at nominal valueShare premium amount subscribed for share capital in excess of nominal value, net of allowable expensesShare options reserve reserve for share options granted but not exercised or lapsedAccumulated losses cumulative net gains and losses recognised in the statement of comprehensive incomeKEFI MINERALS PLC
CONSOLIDATED STATEMENT OF CASH FLOWS
Year ended 31 December 2010 2010 2009 GBP'000 GBP'000
CASH FLOWS FROM OPERATING ACTIVITIES
Loss before tax (687) (964) Adjustments for:
Depreciation of property, plant and equipment 17
17 Negative goodwill (314) - Share-based payments 16 94 Issue of warrants 14 47
Share of loss from jointly controlled entity 230
-
Exchange difference on translation of subsidiaries (26)
39 (750) (767) Changes in working capital: Trade and other receivables 4 45 Trade and other payables (13) (262) (9) (217) Net cash used in operating activities (759)
(984)
CASH FLOWS FROM INVESTING ACTIVITIES Payments for purchase of property, plant and (1)
(21)equipment
Acquisition of jointly controlled entity (181)
(2)
Advances from Centerra Gold (KB) Inc. -
(266)
Share of cash from jointly controlled entity (55)
150
Net cash used in investing activities (237)
(139)
CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from issue of share capital 1,304 1,207 Listing and issue costs (91) (55) Net cash from financing activities 1,213
1,152
Net increase in cash and cash equivalents 217
29 Cash and cash equivalents: At beginning of the year 322 293 At end of the year 539 322KEFI MINERALS PLC
COMPANY STATEMENT OF CASH FLOWS
Year ended 31 December 2010 2010 2009 GBP'000 GBP'000
CASH FLOWS FROM OPERATING ACTIVITIES
Loss before tax (617) (2,301) Adjustments for: Impairment of intercompany balances 142 1,646 Share-based payments 16 94 Issue of warrants 14 47 (445) (514) Changes in working capital: Trade and other receivables (378) (200) Trade and other payables 2 (141) (376) (341) Net cash used in operating activities (821)
(855)
CASH FLOWS FROM INVESTING ACTIVITIES Acquisition of jointly controlled entity (181)
-
Advances from Centerra Gold (KB) Inc. -
(266)
Net cash used in investing activities (181)
(266)
CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from issue of share capital 1,304 1,207 Listing and issue costs (91) (55) Net cash from financing activities 1,213
1,152
Net increase in cash and cash equivalents 211
31 Cash and cash equivalents: At beginning of the year 319 288 At end of the year 530 319
The financial information set out in this announcement does not constitute theCompany's financial statements (as defined by s434 of the Companies Act 2006)for the year ended 31 December 2010. The results for the year ended 31 December2010 are extracted from the Annual Report of KEFI Minerals plc, on which theauditors have issued an unmodified opinion. Their report contains an Emphasisof Matter paragraph in relation to going concern uncertainty.
vendorRelated Shares:
Kefi Gold & Copper