30th Jun 2005 07:00
Central African Gold PLC30 June 2005 Central African Gold plc Results for the year ended 31 December 2004 Chairman's statement This is my first full year report to shareholders since the Company was admittedto AIM on 26th March 2004 having raised £1,003,000 net of expenses. We have madegood progress through our controlling 53% interest in Golden Tau Mining Ltd ('Golden Tau'), which we acquired in May 2004 for a cash consideration ofA$604,000 (£237,291) before expenses. Golden Tau owns the exploration rights over an 872 sq km area of the KraaipanGreenstone Belt in southern Botswana. The licences, granted by Botswana'sDepartment of Mineral and Energy, cover all precious metals though the Companywill primarily concentrate its activities on gold exploration. As reported in my interim statement, the Kraaipan Greenstone Belt is directlyalong strike from significant gold deposits in South Africa, including thewell-known Goldridge deposit, which has over 4.0 million ounces of gold to 150metres depth. However, many areas of the Kraaipan Greenstone Belt have beenidentified as being inadequately tested. This is in spite of the area havingsignificant mineralization including mining operations as well as strong surfaceencouragement for gold mineralization. Significantly, the areas staked byGolden Tau are similar to those that host the renowned gold deposits of theEastern Goldfields of Western Australia. The Board therefore believes that thearea under licence potentially houses significant gold deposits. Over the reporting period, work carried out by Golden Tau on the Kraaipanproject involved literature research, the acquisition and reprocessing ofexisting airborne magnetic information and the analysis of existing landsat dataas well as drilling and soil geochemical data gathered by Reunion Mining Plc ('Reunion'). On the ground, a helicopter Versatile Time-Domain Electro Magnetic ('VTEM') survey, geological and geophysical interpretation and Reverse Circulation('RC') drilling have taken place. A ground Electro Magnetic ('EM') survey tobetter define the VTEM anomalies is currently in progress. Previous airborne magnetic programmes flown by Reunion and the Geological Surveyof Botswana were reprocessed and an array of images plotted for Golden Tau bySouthern Geoscience Consultants Pty Ltd (SGC) in Perth Western Australia. Thesewere used as the basis for aeromagnetic interpretation and target generation. A helicopter borne time domain EM survey comprising 520 line km was flown over atotal area of 174 km2 of the Kraaipan tenement area in August 2004 by GeotechLtd. Line spacing was 100m in the southern portion of the tenement over theReunion area and 500m spacing further to the north. Less than 20% of the totalarea was flown in detail. The VTEM survey was primarily aimed at testing forburied conductors related to sulphide bearing banded iron formations which arecommonly associated with gold deposits in the Southern Cross greenstone belt inWestern Australia. Conductors related to massive sulphides in VMS and nickeldeposits were also regarded as possible targets for the EM survey. SGC carried out a geological and geophysical interpretation of the airbornemagnetic and EM data in the light of its extensive experience with WesternAustralian greenstone belts. SGC's geological interpretation of the Kraaipanarea generated 50 geological/structural targets based on established geologicalmodels for mineralization in equivalent greenstone belts elsewhere. Somereversely magnetised BIF and intrusives were also interpreted from the magneticdata as were several discrete magnetic anomalies which are possible kimberliteintrusives. Interpretation of the VTEM data generated 46 conductors (ie.potential sulphides) for follow up. An RC drilling programme to test some of the VTEM conductors in the southernportion of the Kraaipan area commenced in late 2004 and was completed in 2005.Drilling was carried out by R.A. Longstaff Pty Ltd with field management by MPHConsulting Pty Ltd. Seven holes were drilled for a total of 1025m. Slow progressand very high drilling costs due to the inability to retrieve steel casingresulted in an earlier than planned termination of the programme and hence onlythree EM targets (KB 13, 14 & 21) were tested. KB14 was tested by a fence of three inclined holes (KRC05-002 to 004) spaced 50mapart. KB21 was tested by three inclined holes (KRC04-001, 002 & KRC05-001)spaced 100m apart. A third conductor (KB13) to the west of KB14 was tested by asingle inclined drill hole (KRC05-005). The most promising EM targets have yetto be drilled. 190 2m to 3m composite drill chip samples were dispatched to theGenalysis laboratory in Johannesburg for sample preparation and forwarded totheir Perth laboratory for analysis of Au by fire assay/AAS and Ag, As Cu, Ni,Pb & Zn by aqua regia digest/AAS. We are still awaiting these laboratoryresults. We remain committed to locating other gold projects in Southern Africa and areactively pursuing a number of interesting opportunities. We are applying forfurther concession in Botswana and are in advanced negotiations over propertiesin Mozambique. We want to build Central African Gold into a significant goldexploration and production company and feel that we are gaining recognition inthe region which will enable us to achieve this. During the year we completed a £500,000 fundraising programme to finance theexpansion of our exploration activities, fund project acquisitions and providegeneral working capital. We placed 2.7 million new Ordinary Shares of 0.1p eachat a price of 7 pence per share and 4.5 million new Ordinary Shares of 0.1p eachat a price of 7.5 pence per share, with European institutions. Importantly, bybuilding up significant cash reserves, we can increase our flexibility whennegotiating deals, which will help us to expand our gold exploration in SouthernAfrica. For the twelve month period ending 31st December 2004 we are reporting a pre andpost tax loss of £116,108 and a cash position of £1,436,502. Philippe EdmondsChairman Consolidated profit and loss account for the period ended 31 December 2004 Notes 26 November 2003 to 31 December 2004 £ TURNOVER - Operating expenses (123,257) OPERATING LOSS (123,257) Interest receivable 7,149 LOSS ON ORDINARY ACTIVITIES BEFORE TAXATION (116,108) Taxation - LOSS ON ORDINARY ACTIVITIES AFTER TAXATION (116,108) Minority interests 632 LOSS FOR THE FINANCIAL PERIOD (115,476) LOSS PER ORDINARY SHARE Basic and diluted 3 (0.094p) The operating loss for the period arises from the group's continuing operations. Consolidated statement of total recognised gains and losses for the period ended31 December 2004 26 November 2003 to 31 December 2004 £ Loss for the financial period (115,476) Foreign currency translation adjustments relating to subsidiary undertakings 4,815 Total recognised gains and losses for the period (110,661) Consolidated balance sheet at 31 December 2004 £ FIXED ASSETSIntangible assets 179,823 CURRENT ASSETSDebtors 67,254Cash at bank and in hand 1,436,502 1,503,756 CREDITORS: Amounts falling due within one year (52,845) NET CURRENT ASSETS 1,450,911 TOTAL ASSETS LESS CURRENT LIABILITIES 1,630,734 CAPITAL AND RESERVESCalled up share capital 165,743Share premium account 1,459,793Profit and loss account (110,661) EQUITY SHAREHOLDERS' FUNDS 1,514,875 Minority interests 115,859 1,630,734 Consolidated cash flow statement for the period ended 31 December 2004 Notes 26 November 2003 to 31 December 2004 £ Cash outflow from operating activities 4a (133,256) Returns on investments and servicing of finance 4b 7,149 Capital expenditure and financial investment 4b (55,046) Acquisitions and disposals 4b (7,881) CASH OUTFLOW BEFORE FINANCING (189,034) Management of liquid resources 4b (168,007) Financing 4b 1,625,536 INCREASE IN CASH IN THE PERIOD 1,268,495 RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS 26 November 2003 to 31 December 2004 £ Increase in cash in the period 1,268,495Cash outflow from increase in liquid resources 168,007 NET FUNDS AT 31 DECEMBER 2004 4c 1,436,502 Notes to the accounts 1. Financial information The financial information for the year ended 31 December 2004 have been extracted from the Company's audited accounts which have not yet been filed with the UK Registrar of Companies. The Financial Information does not constitute the Company's statutory financial statements within the meaning of S240 of the Companies Act 1985. There is no comparative information as the Company was incorporated on 26 November 2003. 2. Basis of preparation The financial statements have been prepared under the historical cost convention and in accordance with applicable accounting standards. There is no comparative period as the Company was incorporated in November 2003. 3. Loss per share The calculation of basic and diluted loss per ordinary share is based on the following losses and number of shares. 26 November 2003 to 31 December 2004 £ Loss for the financial period (115,476) 2004 No. of shares Weighted average number of shares 122,387,988 Due to the loss incurred in the period, there is no dilutive effect from theissue of share options and warrants. 4. Cash flows 2004 £a Reconciliation of operating loss to net cash outflow from operating activities Operating loss (123,257) Increase in debtors (67,161) Increase in creditors 48,088 Exchange rate adjustments 9,074 Net cash outflow from operating activities (133,256) b Analysis of cash flows for headings netted in the cash flow 2004 £ Returns on investments and servicing of finance Interest received 7,149 Net cash inflow from returns on investments and servicing of finance 7,149 Capital expenditure and financial investment Purchase of intangible fixed assets (55,046) Net cash outflow from capital expenditure and financial investment (55,046) Acquisitions and disposals Purchase of subsidiary undertaking (246,060) Cash acquired with subsidiary 238,179 Net cash outflow from acquisition and disposals (7,881) Management of liquid resources Cash placed on deposit (168,007) Net cash outflow from management of liquid resources (168,007) Financing Proceeds from issue of share capital 1,732,000 Share issue costs (106,464) Net cash inflow from financing 1,625,536 At 31 December 2004 £ c Analysis of net funds Cash at bank and in hand 1,268,495 Cash on deposit 168,007 1,436,502 5. Availability of accounts Copies of the audited financial statements are being posted to shareholders on 30 June 2005 and will be available at 18 Upper Brook Street, London W1K 7PU until 31 July 2005. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Canal+