15th Nov 2006 11:32
Greatland Gold PLC15 November 2006 GREATLAND GOLD PLC Final audited results for the year ended 30 June 2006 Dated: 15 November 2006 Greatland Gold plc (the "Company") the mineral exploration and developmentcompany focused on gold projects in Tasmania and Western Australia announcedtoday its preliminary results for the period ended 30 June 2006. Chairman's statement The financial period to 30th June 2006 was the first of Greatland Gold plc'scorporate life, and saw both the Company's conversion to a PLC and the decisiontaken to apply for admission to trading on the AIM market of the London StockExchange. In May 2006, Greatland Gold plc purchased Greatland Pty Ltd, a company that ownsthree gold projects located in Tasmania and Western Australia through the issueof 25,000,000 ordinary shares in the Company. Following the acquisition, theissued capital of the Company was 35,000,000 ordinary shares. Post Balance Sheet Events On 3rd July 2006 Greatland Gold plc was admitted to trading on AIM, raising£1,311,000 before expenses. A copy of the admission document, which containsdetails of the Company's mineral projects, can be downloaded from our website atwww.greatlandgold.com. Total shares in issue at admission were 100,550,000ordinary shares. On 12th September 2006 the company issued 5,000,000 ordinary shares to SunvestCorporation Ltd, a company incorporated in Australia, pursuant to an agreementdated 27th June 2006. On 6th October 2006 the company issued 1,000,000 ordinary shares to Baracus PtyLtd, a company incorporated in Australia, pursuant to an agreement dated 27thJune 2006. Exploration The Company announced on 14th August 2006 that exploration at its Tasmanianprojects had commenced. This included diamond drilling of gold mineralisation atthe Firetower project, and geological mapping of historic goldfields at itsWarrentinna project. Results will be released to the market in a timely manner. Outlook The Directors believe the Company is well positioned within the global miningsector. This sector is enjoying strong commodity prices, high demand andexperiencing rapid expansion. During 2006 and 2007 the Company is expected togrow and it is anticipated that it will continue to be a period of activedevelopment. Along with ongoing activities at its existing projects theDirectors are reviewing new opportunities that are being presented and expect toundertake further acquisitions of quality exploration and mining projects. Conclusions I would like to record my appreciation and thanks to our new investors whosupported the Placing. Thanks also to our professional advisors for their workduring fund raising and the admission to AIM. Andrew R. McM. Bell Chairman 14th November 2006 Managing Director's Operating Review The main activities of Greatland Gold plc are the exploration for, anddevelopment of, large gold resources. The Company was formed and registered asGreatland Gold Limited. A decision was taken during June to apply for admissionto trading on AIM. The Company acquired three mineral properties in May 2006 through theacquisition of Greatland Pty Ltd. Greatland Gold plc's portfolio of propertiesnow consist of these three projects - two in Tasmania and one in WesternAustralia. The gold price has seen significant gains since the latter parts of 2005, and iscurrently on a general upward trend. Whilst short term volatility is apparentthe longer term trend is positive. The gold market is driven by a number of factors that affect the price of themetal. These include central bank gold sales, industrial demand, jewellerydemand, investment demand, gold based foreign exchange reserves, mine productionand scrap reclamation. Perceived weaknesses in the US economy are also relevant. Tasmania had been a productive and profitable place to mine, with large gold andbase metal deposits; particularly +1 million ounces gold deposits. The Companyis looking for further deposits of that scale. In Tasmania the company owns the Firetower and Warrentinna projects, and inWestern Australia the Lackman Rock project in the Yilgarn region in the southeast of the state. The tenements cover a total area of around 300sq km. Theyrange in development from advanced exploration, with a resource at the Firetowerproject, through prospects with identified targets at both Firetower andWarrentinna, to a prospective grass roots gold and nickel area at Lackman Rock. The initial focus is the Firetower project located in central northern Tasmania,in close proximity to the +2 million ounce Beaconsfield gold mine and the largeHenty gold mine. A large proportion of the Company's exploration efforts will bedirected at drilling at Firetower, with the aim of increasing the resource base. Firetower is characterised by high-grade gold mineralisation at surface anddrill intercepts up to 30g/t gold. Mineralisation remains open in all directionsand at depth, and comes to surface making it attractive for open pit mining.Other areas of gold mineralisation and structural targets have been identifiedover 15km of strike east and west of the Firetower deposit. These targets awaitdrill testing. The Company's other Tasmanian project is the Warrentinna gold project, locatedin an historic gold precinct in the north east of the state. The project areacovers three historic goldfields, Warrentinna, Forester, and Waterhouse thatwere mined some 100 years ago. High grade gold from lodes at surface were pulledfrom the region. Gold was also taken from underground workings, but the area hasnot been subject to significant modern exploration efforts. The Company also has other exploration targets to be drill tested at bothFiretower, Warrentinna, as well as at the Lackman Rock project in WesternAustralia. Lackman Rock lies in the south Yilgarn region that is host tosignificant deposits of gold and nickel sulphides. This is a greenfieldopportunity where we plan to develop gold and nickel sulphide targets. We arefirst movers into this area and from a geological perspective it is a very goodopportunity. One of the factors that will help the Company achieve its goals is the calibreof its board. We have a good mix of technical talent, promotional experience,financing capacity and corporate ability. The admission to AIM on 3rd July 2006, subsequent to this reporting period,clearly demonstrates that your Company is an attractive investment opportunity.The funds raised will be applied to evaluation of the grade, extent andmetallurgical character of mineralisation within the tenements. The results willbe utilised in developing JORC Code compliant estimates of resources, andprovide a final resource to complete pre-feasibility studies. We are delighted to have had a successful year and look forward to the excitingdevelopments in the year ahead as part of AIM - a large and dynamic market. Callum N Baxter Managing Director 14th November 2006 The Company's unaudited results for the year ended 30 June 2006 are as follows. Group Income Statement For the Period Ended 30 June 2006 Period 16 November 2005 to 30 June 2006 £ Turnover -Administrative expenses (27,743)Operating loss (27,743)Interest receivable 131Loss on ordinary activities before taxation (27,612)Tax on loss on ordinary activities -Loss for the financial period (27,612) Loss per share - basic (0.23) pence There were no items of income and expense for the period ended 30 June 2006other than those shown in the group income statement. Group Balance Sheet As at 30 June 2006 30 June 2006 £ £ASSETSNon-current assets Exploration properties 291,379Current assets Cash and cash equivalents 1,318,648 Trade and other receivables 33,897Total current assets 1,352,545TOTAL ASSETS 1,643,924LIABILITIESCurrent liabilities Trade and other payables (224,458)TOTAL LIABILITIES (224,458)NET ASSETS 1,419,466 EQUITY Called-up share capital 100,550 Share premium reserve 1,108,084 Retained losses (27,612)Other reserves 238,444 TOTAL EQUITY 1,419,466 Company Balance Sheet As at 30 June 2006 30 June 2006 £ £ASSETSNon-current assets Investments 250,000Current assetsCash and cash equivalents 1,317,243Trade and other receivables 43,138Total Current Assets 1,360,381TOTAL ASSETS 1,610,381LIABILITIESCurrent LiabilitiesTrade and other payables (183,692)TOTAL LIABILITIES (183,692)NET ASSETS 1,426,689 EQUITY Called-up share capital 100,550Share premium reserve 1,108,084Merger reserve 225,000Retained losses (6,945) TOTAL EQUITY 1,426,689 Group Cash Flow Statement For the Period Ended 30 June 2006 Notes Period ended 30 June 2006 £ Cash flows from operating activities Operating loss (27,743)Increase in debtors (23,100)Increase in creditors 174,142Cash generated from operations 123,299Cash flows from investing activitiesInterest received 131Purchase of intangible assets (590)Net cash flows used in investing activities (459)Acquisitions and disposalsCash acquired with subsidiary acquisition 12,174Net cash inflow from acquisitions and disposals 12,174Cash inflows from financing activitiesProceeds from issue of shares 1,411,000Transaction costs of issue of shares (227,366)Net cash flows from financing activities 1,183,634Net increase in cash and cash equivalents 1,318,648Cash and cash equivalents at the beginning of period -Cash and cash equivalents at end of period 1,318,648 Notes to the Financial Statements for the period ended 30 June 2006 1. The Directors are not recommending the payment of anordinary share dividend. 2. Loss per share on the net basis is calculated on a loss onordinary activities after taxation of NIL and on 12,000,886 ordinary sharesbeing the weighted average number of shares in issue and ranking for dividendduring the period. No diluted loss per share is presented as the effect ofexercise of outstanding options is to decrease the loss per share. 3. The financial information set out in this final resultsannouncement does not constitute statutory accounts as defined in section 240 ofthe Companies Act 1985. Results for the year ended 30 June 2006 are abridged from the 2006 Annual Reportand Accounts, which received an unqualified auditor's report and will be filedwith the Registrar of Companies following the Annual General Meeting. 4. The Annual Report will be posted to shareholders week commencing on20 November 2006. Further copies will be available from the Company's registeredoffice: 3rd Floor, 55 Gower Street, London WC1E 6HQ for one month from Friday 24November or from the company's website www.greatlandgold.com. 5. The Annual General Meeting of the Company will be held at theCompany's offices at 115 Eastbourne Mews, Paddington, London W2 6LQ, on Tuesday19 December 2006 at 10.00 a.m. Enquiries: Callum Baxter +44 (0)20 7099 5845 Greatland Gold plc Managing Director John Simpson +44 (0)20 7512 0191 ARM Corporate Finance Ltd Nominated Adviser Updates on the Company's activities are regularly posted on its websitewww.greatlandgold.com This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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