15th Jun 2007 07:01
African Consolidated Resources Plc15 June 2007 Embargoed for 7.00am 15 June 2007 African Consolidated Resources plc Preliminary Results for year ended 28 February 2007 Report from Chief Executive It is almost half way through 2007 and ACR has been listed on the AIM market fornearly a year. It has been such an event-filled year that it seems like a decade. We haveachieved much. We have remained consistently focused on our original strategy,and the next 18 months promises to be as interesting and rewarding as the last.The equity markets have awoken to the enormous driving force that is thedevelopment of China, India, Brazil and others. This has driven commodityprices and will continue to pass investment through to the resource sector. Our strategy is a long-term one and our ambition to be a major mineraldevelopment company remains unbridled. We have selected Zimbabwe, a countryrich in geological variety, mineral wealth and mining history. We chose to gainfirst mover advantage in Zimbabwe several years ago and today ACR is by far thelargest investor in mineral exploration in that country. We believe the countrywill one day be viewed more positively by investors than it is today, and whenthat time comes ACR's assets shall surely receive a more realistic valuationfrom the market. Your investment coupled with our skills, staff and management have procuredsubstantial holdings of resources and prospective tenements. The currentdrilling results on our gold projects are now all in and we have engaged SRK toprovide a JORC Resource upgrade. The results of this exercise are to bereleased in the near future and we hope to release them at the same time as our2007 Annual Report. At that point I will also provide highlights of someexploratory drilling on properties outside the scope of the JORC exercise. We continue to advance our gold projects. The One-Step gold project has showngreat promise and discussions are underway for consolidating ground with ourneighbours and forming a Joint Venture in this regard. In the past twelve months, we have undertaken very large scale samplingexercises to develop detailed geochem maps over large areas of tenements. Thisexercise has begun to show very promising results and many targets are nowmarked for follow-up geochem and geophysics with a view to defining drilltargets. The first phase sampling continues to target ground for gold, PGE's,nickel and diamonds. We continue to acquire ground that is prospective for large nickel deposits.The first of these is along strike from a known ore body and historical mine(Perseverance). This is absorbing most of our energy within the Nickel Divisionbut first phase sampling continues at our other Nickel targets. The Snakes Headregion of the Great Dyke continues to interest us, so mapping and samplingcontinues to seek new zones of PGE mineralisation other than those alreadyidentified. Diamonds have become very topical post our discovery of the Marange deposit.While this title remains in dispute, it is important to note that neither ACR asa company nor Zimbabwe as a country are unique in encountering such disputes andit is the very nature of business that more than one interpretation of facts orof law can arise in complex situations. ACR has referred the matter to the HighCourt of Zimbabwe in order that clear, unambiguous title may be established. Weremain confident of a fair judicial outcome and hopeful that the case may besettled in our favour in accordance with the legal advice we have received todate. ACR remains very willing to enter into a joint venture on the Marange depositwith the Zimbabwe Government and is continuing its efforts at dialogue in thatregard. It is essential to understand that ACR is very willing to work with theGovernment in all matters and neither seek confrontation nor see the Governmentas hostile to the Company. Following some arms length research, the Company now feels that it is equippedto begin exploration within specific targets in Mozambique and Zambia asoriginally stated in our AIM Admission document. As these new ventures takeshape, we will keep you abreast of related news. I look forward to providing a more comprehensive update on the state of affairsvery shortly in our 2007 Annual Report. A. N. CranswickChief Executive Enquiries: African Consolidated Resources Plc Andrew Cranswick +44 7920 189010Roy Tucker +44 1622 816918 +44 7920 189012 Evolution SecuritiesSimon Edwards +44 20 7071 4300 Consolidated income statement (unaudited)for the year ended 28 February 2007 Notes For the year For the period ended from 5 April 28 February 2005 to 2007 28 February 2006 Group Group £ £Turnover - - Administrative expenses 3 (1,809,334) (401,961) Operating loss (1,809,334) (401,961) Finance Income 102,077 61,242 Loss on ordinary activities before and after taxation (1,707,257) (340,719) Loss per share - basic and fully diluted 4 (0.96)pence (0.35) pence Group and company balance sheet (unaudited)As at 28 February 2007 28 February 2007 28 February 2006 Group Group £ £Assets Non-current assets Intangible assets 4,962,150 2,329,211 Property, plant and equipment 372,749 142,376 Fixed asset investments 38,363 43,273 5,373,262 2,514,860 Current assets Inventory 32,608 50,775 Receivables 84,632 53,985 Cash and cash equivalents 1,514,548 1,975,166 Total current assets 1,631,788 2,079,926 Total Assets 7,005,050 4,594,786 Equity and Liabilities Capital and reserves attributable toequity holders of the company Called-up share capital 1,899,941 1,456,270 Share premium account 6,434,653 2,442,790 Profit and loss account (2,047,976) (340,719) Share option reserve 487,194 53,000 Total equity 6,773,812 3,611,341 Current liabilities Trade and other payables 231,238 983,445 Total current liabilities 231,238 983,445 Total Equity and Liabilities 7,005,050 4,594,786 Group and company cash flow statement (unaudited)for the year ended 28 February 2007 For the year For the period from ended 5 April 2005 to 28 February 28 February 2007 2006 Group Group £ £CASH FLOW FROM OPERATING ACTIVITES Loss on ordinary activities (1,707,257) (340,719) Adjustments for: Depreciation 59,910 10,243 Finance income (102,077) (61,242) Share option charges 409,461 53,000 367,294 2,001 Changes in working capital: Increase in receivables (30,647) (53,985) Decrease/(Increase) in stock 18,167 (50,775) (Decrease)/Increase in payables (752,207) 983,445 (764,687) 878,685 Cash generated from operations (2,104,650) 539,967 Investing activities: Payments to acquire intangible (2,632,939) (2,329,211) assets Payments to acquire property, plant (305,279) (152,619) and equipment Proceeds on disposal of fixed 14,996 - assets Interest received 102,077 61,242 (2,821,145) (2,420,588) Financing Activities: Decrease/(Increase) in investments 4,910 (43,273) Issue of ordinary shares 4,460,267 3,899,060 4,465,177 3,855,787 (Decrease)/Increase in cash and cash (460,618) 1,975,166equivalents Cash and cash equivalents at beginning 1,975,166 -of period Cash and cash equivalents at end of 1,514,548 1,975,166period Preliminary Report notes 1. Preliminary report The information relates to the period from 1 March 2006 to 28 February 2007,together with comparatives for the prior year. The preliminary report was approved by the Directors on 14th June 2007. The preliminary report is unaudited. 2. Basis of Accounting The report has been prepared using accounting policies that theGroup and its subsidiaries adopted for prior periods. The information does notconstitute statutory accounts within the meaning of section 240 of the CompaniesAct 1985. These preliminary financial statements consolidate the financialstatements of the Company and all its subsidiaries. 3 Administrative Expenses Group administrative expenses includes employee share optionexpenses of £409,461 (2005/6 : £53,000). 4 Loss per share For the year For the period ended from 5 April 2005 to 28 28 February February 2006 2007 Losses per Ordinary Share have been calculated using the 177,289,260 96,567,209 weighted average number of Ordinary Shares in issue during the relevant financial period. The weighted average number of Ordinary Shares on issue for the relevant period is: Group Group £ £ Losses for the Group for the relevant period (1,707,257) (340,719) 5 Consolidated Statement of Changes in Equity 28 February 28 February 2007 2006 Group Group £ £Opening Shareholders' funds 3,611,341 - Loss for the period (1,707,257) (340,719) Share option reserve charge 434,194 53,000 Issue of shares 4,435,534 3,899,060 Closing Shareholders' funds 6,773,812 3,611,341 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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