6th May 2005 16:44
Minco PLC06 May 2005 The announcement released under RNS Number 0079M entitled "Minco PLC FinalResults" erroneously stated the "Bank" figure on the consolidated balance sheetas 6,664,332 whereas the correct figure is 6,644,332. The amended text of theannouncement is as follows: Minco plc ("Minco" or "the Company") Final results for the year ended 31 December 2004 LONDON: 5 May 2005 - Minco plc (MIO) reports final results for the year ending31 December 2004. Highlights: • Minera Sisa, Mexico - Acquisition of 50% shareholding in silverproject: completed after year end o 2,250 hectare highly prospective silver/gold/copper property in the Sierra Madre district of Mexico o 7,000 metre drilling programme to begin in May 2005 • Laguna, Mexico- Completion of the feasibility study on precious metals /Mercury tailings project o Life-of-mine revenue from the project of US$116.4m* o Life-of-mine operating profit of US$75.6m* o Net present value of US$26.5m* o 8-year mine life • Commencement of the bankable feasibility study on Laguna o Completion of additional 150 drill holes o Bankable feasibility study scheduled for completion in the third quarter of 2005 by Micon International o Increase from feasibility throughput of 1 million to 1.25 million tonnes a year for eight years o Secured operating licence from Mexican Government Environmental Agency, representing the final licence requirement o Production targeted for 2006 • Drilling programme commenced on Pallas Green zinc property in Ireland o 9,000 metre diamond drilling programme to commence in April 2005 with partners Noranda • £4.5 million fundraising (• 6.4 million ) (before expenses) in November 2004 * US$6.50 per ounce silver price Objectives for 2005: o Focus on Mexican precious metals development o Complete the bankable feasibility study on the Laguna silver tailings project o Complete project financing of the Laguna project, allowing Minco the potential to construct plant and to generate revenue in 2006 o Complete phase 1 drilling programme on Minera Sisa to indicate the extent of the mineralised structure and upgrade the silver and gold deposit categorisation to resources status o Continue project evaluations in Mexico to secure complementary high value projects o Complete Pallas Green zinc licence drill programme The achievement of these goals will ensure that our growth profile remains ontrack and contribute significantly to Minco's goal of becoming a major silverproducer by 2008. Excerpts from the Chairman's Statement: Minera Sisa; Mexico 'Since the completion of the Minera Sisa acquisition, in late February 2005,geochemical and geophysical programmes and infrastructure construction werecommenced in preparation for the commencement of drilling in early May.Additional concessions around the original Sisa properties were granted toMinco, increasing this highly prospective area to 2,250 hectares along thestrike of the known silver/gold/copper deposits.' 'The existing known deposit at Minera Sisa is host to a small narrow vein mine,with mine equipment and process plant, and we are currently assessing theviability of recommencing operations. It is, however, the potential of theentire property to contain large scale epithermal silver/gold/copper deposits,of which three are already known, that has led us to take on Minera Sisa. Nomodern exploration activity has previously been carried out on the property,although historic mining of the narrow veins of one of the deposits is reportedto have delivered grades of 3,000 grammes per tonne of silver and 20 grammes pertonne of gold.' La Laguna; Mexico 'Drilling continued on the Laguna tailings project at Zacatecas until Decemberand a further 150 holes were drilled following the completion of the feasibilitystudy bringing the total drilling, for resource and reserve calculations, to 366holes. The bankable feasibility study was awarded to Micon International inToronto, with the completion date scheduled for the third quarter of this year.All environmental permits have now been received from the Mexican Government.' Silver Outlook. 'Between January 2004 and January 2005 the price of silver increased fromUS$4.50 to US$6.50 per ounce. The outlook for silver remains good with strongdemand in electronics, medicine, and wood preservation applications, combinedwith a decline in mined production. The potential for silver to replace platinumas an automotive catalyst, and its use in automotive fuel cells, could also havea major impact on demand and price.' Pallas Green; Ireland. 'Following encouraging drill results in 2004, plans for a 9,000 metre drillingprogram were finalised with our partner Noranda Inc. and the first phase ofdrilling commenced in April 2005. With zinc price at a 5-year high, and aspectacular rise in the past two years from just over US$0.30 to over US$0.60per pound the incentive to prove this a major deposit has increasedconsiderably.' Roger W TurnerChairman of the Board Consolidated Profit and Loss Account for the Eight Months Ended 31 December 2004 8 months ended 12 months ended 31 December 2004 30 April 2004 • • ------------------- -------------------General and Administration expenses (395, 970) (209,932)Foreign exchange losses (64,758) -Administration expenses (460,728) (209,932)Exploration costs written off (387,738) - ------------------- -------------------Operating loss - Continuing activities (848,466) (110,380) - Acquired activities - 99,552 ------------------- ------------------- (848,466) (209,932)Exceptional item Profit on disposal of assets - 77,828 ------------------- ------------------- (848,466) (132,104)Interest income 56,348 14,716 ------------------- -------------------Loss before taxation (792,118) (117,388) Taxation - - ------------------- -------------------Loss for the period after taxation (792,118) (117,388) ------------------- ------------------- Loss per share (0.79c) (0.18c)Loss per share - diluted (0.79c) (0.18c) The results above are derived from continuing activities. Consolidated Statement of Total Recognised Gains and Losses for the Eight MonthsEnded 31 December 2004 8 months ended 12 months ended 31 December 2004 30 April 2004 • •Loss for the period (792,118) (117,388)Exchange gains on foreign currency netinvestments 6,300 10,525Total recognised losses for the period (785,818) (106,863) Consolidated Balance Sheet at 31 December 2004 31 December 2004 30 April 2004 • •Fixed assetsIntangible assets 6,527,073 5,810,617 ------------- -------------Current assetsBank 6,644,332 1,947,447Debtors 43,605 13,555 ------------- ------------- 6,687,937 1,961,002 ------------- -------------Creditors Amounts falling due within one year (541,981) (343,259) ------------- -------------Net current assets 6,145,956 1,617,743 ------------- -------------Net assets 12,673,029 7,428,360 ------------- -------------Capital and reserves Called-up share capital 4,073,554 3,562,191Share premium account 13,869,835 8,350,711Profit and loss account - (deficit) (5,314,817) (4,528,999)Capital conversion reserve fund 44,457 44,457 ------------- -------------Shareholders' funds 12,673,029 7,428,360 ------------- -------------Analysed as: Equity 10,260,527 5,015,858Non-equity 2,412,502 2,412,502 ------------- ------------- 12,673,029 7,428,360 ------------- ------------- Consolidated Cash Flow Statement for the Eight Months Ended 31 December 2004 8 months ended 12 months ended 31 December 2004 30 April 2004 • •Net cash outflow from operating activities (285,756) (251,666) ------------- -------------Returns on investments and servicing offinanceInterest received 56,348 14,716 ------------- -------------Net cash inflow from returns on investmentsand servicing of finance 56,348 14,716 ------------- -------------Capital expenditure and financialinvestment Payments in respect of fixed assets (1,104,194) (500,961) ------------- -------------Net cash outflow from capital expenditureand financial investment (1,333,602) (486,245) ------------- -------------Acquisitions and disposalsPurchase of subsidiaries - (27,017)Net cash acquired with subsidiaries - 432,741Sale of subsidiary - 100,000Expenses on sale of subsidiaries - (22,172)------------------------------- ------------- -------------Net cash outflow from acquisitions anddisposals - 483,552------------------------------- ------------- -------------Net cash outflow before use of liquidresources and financing (1,333,602) (254,358)------------------------------- ------------- -------------Financing Shares capital issued for cash 6,419,249 2,294,203Cost of issue of share capital (388,762) (115,323)------------------------------- ------------- -------------Net cash flow from financing 6,030,487 2,178,880------------------------------- ------------- -------------Increase in cash 4,696,885 1,924,522 Notes: 1. These do not constitute statutory accounts as defined in the Companies Acts. Statutory accounts for the year ended 31 December 2004 together with a report from the auditors will be filed with the Irish regulatory authorities in due course. 2. The Directors have decided not to pay a dividend. 3 Basic loss per share is computed by dividing the loss after taxation for the year available to ordinary shareholders by the sum of the weighted average number of ordinary shares in issue. Diluted loss per share is computed by dividing the loss after taxation for the year by the weighted average number of ordinary shares in issue, adjusted for the effect of all dilutive potential ordinary shares that were outstanding during the year. In 31 December 2004 (and 30 April 2004) the basic and diluted loss per share were the same, as the effect of the outstanding share options was anti-dilutive, and was therefore excluded. The computation for basic and dilutive loss per share (EPS) is as follows: 31 December 2004 30 April 2004 • •NumeratorNumerator for EPS - loss (792,118) (117,388) Denominator Number NumberDenominator for basic and diluted EPS 99,817,588 64,601,576Basic EPS (0.79c) (0.18c)Diluted EPS (0.79c) (0.18c) 4 The annual report and accounts for the Company for the year ended 31 December 2004 will be posted to shareholders on or before 30 June 2005 and copies of the report and accounts will be available from that date at the Company's registered office at 162 Clontarf Road, Dublin 3, Ireland. For further information Matthew Dorman, CEO Tel: +34 687 494 550 [email protected] Roger Turner, Chairman Tel: +44 (0) 1273 495500 [email protected] Richard Thornton, Director Tel: +44 (0) 20 7947 3238 [email protected] Laurence Read, Conduit PR Tel: +44 (0) 20 7936 9095 [email protected] / (0)7979 955 923 Ewan Leggat, Seymour Pierce Tel: +44 (0) 20 7107 8000 [email protected] MINCO is a precious metals development and exploration company listed on the AIMmarket in London.Ticker symbol (MIO), www.minco.ie This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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