16th Mar 2009 07:00
THOR MINING PLC
Interim report for the six months to 31 December 2008
Dated: 16 March 2009
Thor Mining PLC ("Thor" or the "Company") ") the specialist metals company focussed on advancing tungsten-molybdenum and uranium projects in the Northern Territory of Australia, today announced its interim results for the period ended 31 December 2008.
REVIEW OF OPERATIONS
The net result of operations for the half-year was a loss of £500,000 (2007: £502,000).
Molyhil Molybdenum/Tungsten project
During the half year ended 31 December 2008, the consolidated entity continued to refine the economic parameters necessary for commencement of development and construction activities for the Molyhil project. While good progress has been made in reducing capital and operating costs for the project, international molybdenum prices have reduced in line with pricing for other metals over the period. This has pushed the development timetable back until product pricing is more conducive for the necessary capital raising.
Subsequent to the end of the half year a drilling program was conducted to identify any possible incremental mineralisation at Molyhil. At the time of reporting, assay results had not been received from this activity.
Uranium exploration projects
The consolidated entity continued to explore its portfolio of tenements for economic deposits of uranium and rare earths
Finance
Subsequent to the end of the period, the company issued 22 million shares raising £209,000 after costs. Funds raised are directed towards funding the drilling program at Molyhil and to supplement working capital.
Other
Subsequent to the end of the period, a number of changes were announced concerning the senior management of the company. Mr John Young terminated as executive director of the company but continues as a non-executive director. Mr Mick Billing was appointed as executive chairman, and Mr Ian Sheffield-Parker was appointed as Chief Executive Officer.
The Board will continue its efforts to derive value from the existing tenement holdings and assess potential additional projects.
Mick Billing
Executive Chairman
INDEPENDENT REVIEW REPORT TO THOR MINING PLC
Introduction
We have been engaged by the Company to review the accompanying Consolidated Balance Sheet of Thor Mining Plc (the "Company") as of 31st December 2008 and the related Consolidated Statements of Income, Changes in Equity and Cash Flows for the six-month period then ended and related notes. We have read the other information contained in the interim financial report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the financial statements.
Directors' Responsibilities
The interim report, including the financial information contained herein, is the responsibility of, and has been approved by the Directors. The Directors are responsible for preparing the interim report in accordance with the AIM Rules for Companies which require that the financial information must be presented and prepared in a form consistent with that which will be adopted in the next annual financial statements.
Our Responsibility
Our responsibility is to express to the Company a conclusion on the condensed set of financial statements in the interim report based on our review. This report, including the conclusion, has been prepared for and only for the Company for the purpose of the AIM Rules for Companies and for no other purpose. We do not, in producing this report, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.
Scope of Review
We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity", issued by the Auditing Practices Board for use in the United Kingdom. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion herein.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim financial information is not prepared, in all material respects, in accordance with International Accounting Standards and the AIM Rules for Companies.
CHAPMAN DAVIS LLP
Chartered Accountants
2 Chapel Court
London
SE1 1HH
10th March 2009
|
Consolidated Income Statement |
|||||
|
For the 6 months ended 31 December 2008 |
|||||
|
Note |
£'000 |
£'000 |
£'000 |
||
|
Six months ended |
Six months ended |
Year ended |
|||
|
|
31 December 2008 (Unaudited) |
31 December 2007 (Unaudited) |
30 June 2008 (Audited) |
||
|
Administrative expenses |
|
(231) |
(205) |
(553) |
|
|
Corporate expenses |
|
(267) |
(315) |
(572) |
|
|
Other expenses |
|
(39) |
(67) |
(93) |
|
|
Operating Loss |
|
(537) |
(587) |
(1,218) |
|
|
Interest receivable |
|
24 |
50 |
104 |
|
|
Other income |
|
13 |
35 |
37 |
|
|
Loss before Taxation |
|
(500) |
(502) |
(1,077) |
|
|
Taxation |
|
- |
- |
- |
|
|
Loss on Ordinary Activities after Taxation |
|
(500) |
(502) |
(1,077) |
|
|
|
|||||
|
|
|||||
|
Basic loss per share |
2 |
(0.33)p |
(0.36)p |
(0.76)p |
|
|
|
|||||
|
|
|||||
|
Consolidated Balance Sheet |
|
||||
|
At 31 December 2008 |
|||||
|
Note |
£'000 |
£'000 |
£'000 |
||
|
31 December 2008 (Unaudited) |
31 December 2007 (Unaudited) |
30 June 2008 (Audited) |
|||
|
NON-CURRENT ASSETS |
|||||
|
Intangible assets - deferred exploration costs |
5,499 |
4,621 |
5,419 |
||
|
Mine development costs |
1,247 |
939 |
1,171 |
||
|
Plant and equipment |
86 |
92 |
113 |
||
|
Total non-current assets |
6,832 |
5,652 |
6,703 |
||
|
CURRENT ASSETS |
|||||
|
Cash and cash equivalents |
588 |
1,871 |
1,321 |
||
|
Trade and other receivables |
24 |
71 |
29 |
||
|
Other |
11 |
20 |
14 |
||
|
Total current assets |
623 |
1,962 |
1,364 |
||
|
TOTAL ASSETS |
7,455 |
7,614 |
8,067 |
||
|
CURRENT LIABILITIES |
|||||
|
Trade and other payables |
(72) |
(133) |
(117) |
||
|
Provisions |
(22) |
(18) |
(5) |
||
|
Interest-bearing liabilities |
(16) |
(12) |
(20) |
||
|
Total current liabilities |
(110) |
(163) |
(142) |
||
|
NON-CURRENT LIABILITIES |
|||||
|
Interest-bearing liabilities |
(57) |
(57) |
(79) |
||
|
Total non-current liabilities |
(57) |
(57) |
(79) |
||
|
Total liabilities |
(167) |
(220) |
(221) |
||
|
NET ASSETS |
7,288 |
7,394 |
7,846 |
||
|
EQUITY |
|||||
|
Issued share capital |
448 |
421 |
448 |
||
|
Share premium |
6,706 |
6,391 |
6,706 |
||
|
Foreign exchange reserve |
1,375 |
758 |
1,443 |
||
|
Merger reserve |
1,634 |
1,634 |
1,634 |
||
|
Option revaluation reserve |
872 |
862 |
862 |
||
|
Retained losses |
(3,747) |
(2,672) |
(3,247) |
||
|
TOTAL EQUITY |
7,288 |
7,394 |
7,846 |
||
|
Consolidated Cash Flow Statement |
|||||
|
For the 6 months ended 31 December 2008 |
|||||
|
£'000 |
£'000 |
£'000 |
|||
|
Note |
Six months ended |
Six months ended |
Year ended |
||
|
31 December 2008 (Unaudited) |
31 December 2007 (Unaudited) |
30 June 2008 (Audited) |
|||
|
CASH FLOWS FROM OPERATING ACTIVITIES |
|||||
|
Operating Loss |
(500) |
(502) |
(1,077) |
||
|
(Increase)/decrease in trade and other receivables |
8 |
17 |
63 |
||
|
Increase/(decrease) in trade and other payables |
(32) |
(191) |
59 |
||
|
Depreciation |
21 |
17 |
39 |
||
|
Share options expensed |
10 |
79 |
79 |
||
|
Unrealised exchange gain |
(22) |
327 |
302 |
||
|
Net cash outflow from operating activities |
(515) |
(253) |
(535) |
||
|
|
|||||
|
CASH FLOWS FROM INVESTING ACTIVITIES |
|||||
|
Proceed from sale of equipment |
13 |
||||
|
Purchase of property, plant and equipment |
(8) |
(10) |
(64) |
||
|
Payments for mine development expenditure |
(116) |
(175) |
(702) |
||
|
Payments for exploration expenditure |
(84) |
(317) |
(342) |
||
|
Net cash outlfow from investing activities |
(195) |
(502) |
(1,108) |
||
|
CASH FLOWS FROM FINANCING ACTIVITIES |
|||||
|
Issue of ordindary share capital |
814 |
1,139 |
|||
|
Share issue costs |
(18) |
||||
|
Repayment of borrowings |
(21) |
(6) |
(11) |
||
|
Net cash inflow from financing activities |
(21) |
790 |
1,128 |
||
|
Net increase/(decrease) in cash and cash equivalents |
(732) |
35 |
(515) |
||
|
Cash and cash equivalents at the beginning of period |
1,321 |
1,836 |
1,836 |
||
|
Cash and cash equivalents at the end of period |
589 |
1,871 |
1,321 |
||
|
Consolidated Statement of Changes in Equity |
|||||||
|
For the 6 months ended 31 December 2008 |
|||||||
|
|
Issued share capital |
Share premium |
Retained earnings |
Foreign Currency Translation Reserve |
Merger Reserve |
Option Reserve |
Total |
|
|
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
|
|
|
|
|
|
|
|
|
|
At 1 July 2007 |
399 |
5,616 |
(2,170) |
431 |
1,634 |
783 |
6,693 |
|
Loss for the period |
- |
- |
(502) |
- |
- |
- |
(502) |
|
Foreign currency translation reserve |
- |
- |
- |
327 |
- |
- |
327 |
|
Total recognised income and expense |
- |
- |
(502) |
327 |
- |
- |
(175) |
|
Share based payments expense |
- |
- |
- |
- |
- |
79 |
79 |
|
Shares issued |
22 |
775 |
- |
- |
- |
- |
797 |
|
At 31 December 2007 |
421 |
6,391 |
(2,672) |
758 |
1,634 |
862 |
7,394 |
|
|
|
|
|
|
|
|
|
|
At 1 July 2007 |
399 |
5,616 |
(2,170) |
431 |
1,634 |
783 |
6,693 |
|
Loss for the period |
- |
- |
(1,077) |
- |
- |
- |
(1,077) |
|
Foreign currency translation reserve |
- |
- |
- |
1,012 |
- |
- |
1,012 |
|
Total recognised income and expense |
- |
- |
(1,077) |
1,012 |
- |
- |
(65) |
|
Share based payments expense |
- |
- |
- |
- |
- |
79 |
79 |
|
Shares issued |
49 |
1,090 |
- |
- |
- |
- |
1,139 |
|
At 30 June 2008 |
448 |
6,706 |
(3,247) |
1,443 |
1,634 |
862 |
7,846 |
|
|
|
|
|
|
|
|
|
|
At 1 July 2008 |
448 |
6,706 |
(3,247) |
1,443 |
1,634 |
862 |
7,846 |
|
Loss for the period |
- |
- |
(500) |
- |
- |
- |
(500) |
|
Foreign currency translation reserve |
- |
- |
- |
(68) |
- |
- |
(68) |
|
Total recognised income and expense |
- |
- |
(500) |
(68) |
- |
- |
(568) |
|
Share based payments expense |
- |
- |
- |
- |
- |
10 |
10 |
|
Shares issued |
- |
- |
- |
- |
- |
- |
- |
|
At 31 December 2008 |
448 |
6,706 |
(3,747) |
1,375 |
1,634 |
872 |
7,288 |
Notes to the Half-yearly Report
For the 6 months ending 31 December 2008
1. PRINCIPAL ACCOUNTING POLICIES
(a) Presentation of Half-yearly results
This half-yearly report was approved by the Directors on 13 March 2009. The half-yearly results have not been audited, but were the subject of an independent review carried out by the Company's auditors, Chapman Davis LLP. Their review confirmed that the figures were prepared using applicable accounting policies and practices consistent with those adopted in the 2008 annual report and to be adopted in the 2009 annual report. The financial information contained in this half-yearly report does not constitute statutory accounts as defined by Section 240 of the Companies Act 1985.
This half year report does not include all the notes of the type normally included in an annual financial report. Accordingly, this report is to be read in conjunction with the annual report for the year ended 30 June 2008, which was prepared in accordance with International Financial Reporting Standards, including IAS 34 'Interim Financial Statements', and complies with the listing requirements for companies trading securities on the AIM market of the London Stock Exchange.
The half-yearly report has been prepared under the historical cost convention.
Notwithstanding the loss incurred during the period under review, the directors are of the opinion that ongoing evaluations of the Company's interests indicate that preparation of the Group's accounts on a going concern basis is appropriate.
(b) Basis of consolidation
The consolidated financial statements comprise the financial statements of Thor Mining PLC and its controlled entities. The financial statements of controlled entities are included in the consolidated financial statements from the date control commences until the date control ceases.
The financial statements of subsidiaries are prepared for the same reporting period as the parent company, using consistent accounting policies.
All inter-company balances and transactions have been eliminated in full.
2. LOSS PER SHARE
No diluted loss per share is presented as the effect of exercise of outstanding options is to decrease the loss per share.
|
£'000 |
£'000 |
£'000 |
||
|
Six months ended |
Six months ended |
Year ended |
||
|
31 December 2008 (Unaudited) |
31 December 2007 (Unaudited) |
30 June 2008 (Audited) |
||
|
Basic loss per share for the period |
||||
|
Loss |
(500) |
(502) |
(1,077) |
|
|
Weighted average number of shares |
149,470,949 |
139,116,507 |
141,295,494 |
|
|
Loss per share - pence |
(0.33) |
(0.36) |
(0.76) |
|
3. PROPERTY, PLANT AND EQUIPMENT
As at 31 December 2008 the group assets had a cost of £168,000 (six months ending 31 December 2007: £143,000). This comprised of motor vehicles and other equipment amounting to £102,000 and £66,000 respectively. The net book values at 31 December 2008 are £50,000 for motor vehicles and £36,000 for other equipment.
4. SHARE-BASED PAYMENTS
In November 2008 a grant of unlisted options was made to directors of Thor Mining PLC. The terms and conditions of the grant made during the six months ended 31 December 2008 are as follows:
|
Number |
Grant Date |
Expiry Date |
Exercise Price |
|
5,000,000 |
24 November 2008 |
15 September 2011 |
AUS$0.18/£0.08 |
Fair value of share option and assumptions for the six months ended 31 December 2008:
Underlying security mid-market value $0.03/£0.01
Exercise Price $0.18/£0.08
Dividend rate -
Standard deviation of returns 80.00%
Risk free rate 3.5%
Expiration period (days) 1,026
Black Scholes valuation $0.004/£0.002
The basis of measuring fair value is consistent with that disclosed in the consolidated financial report as at and for the year ended 30 June 2008.
|
By geographical area |
|||
|
6 months ended 31 December 2008 |
UK |
Australia |
Total |
|
£'000 |
£'000 |
£'000 |
|
|
Result |
|||
|
Operating loss |
(337) |
(200) |
(537) |
|
Investment revenue |
5 |
19 |
24 |
|
Other income |
- |
13 |
13 |
|
Loss before and after tax |
(500) |
|
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|
||||||||||||||||||||||||
|
Liabilities |
UK |
Australia |
Total |
|
£'000 |
£'000 |
£'000 |
|
|
Segment liabilities |
- |
- |
- |
|
Financial liabilities |
12 |
155 |
167 |
|
Consolidated total liabilities |
167 |
6 Turnover and segmental analysis - Group (continued)
|
By geographical area |
|||
|
6 Months ended 31 December 2007 |
UK |
Australia |
Total |
|
£'000 |
£'000 |
£'000 |
|
|
Result |
|||
|
Operating loss |
(287) |
(300) |
(587) |
|
Investment revenue |
7 |
43 |
50 |
|
Other income |
- |
35 |
35 |
|
Loss before and after tax |
(502) |
|
||||||||||||||||||||||||
|
||||||||||||||||||||||||
|
Liabilities |
UK |
Australia |
Total |
|
£'000 |
£'000 |
£'000 |
|
|
Segment liabilities |
- |
- |
- |
|
Financial liabilities |
6 |
214 |
220 |
|
Consolidated total liabilities |
220 |
Shareholder Enquires Damian P Delaney
Shareholders are encouraged to register on the Company's website to receive updates by email.
Web site: www.thormining.com
Nominated Adviser and Blomfield Corporate Finance Limited
Broker London
Telephone: + 44 (0) 20 7489 4500
Fax: + 44 (0) 20 7489 7707
Auditors Chapman Davis LLP
London
Solicitors Ronaldsons
London
Hardy Bowen
Australia
Registrar Computershare Investor Services plc
PO Box 82
The Pavilions
Bridgwater Road
Bristol BS99 7NH
Telephone: + 44 (0) 870 702 0002
Fax: + 44 (0) 870 703 6116
Registered number 05276414
Enquiries:
|
Mick Billing |
+ 61 (0) 414 741 007 |
Thor Mining PLC |
Executive Chairman |
|
Damian Delaney |
+61 438 921 666 |
Thor Mining PLC |
Chief Financial Officer |
|
John Simpson |
020 7489 4500 |
Blomfield Corporate Finance Ltd |
Nominated Adviser |
Updates on the Company's activities are regularly posted on Thor's website www.thormining.com which includes a facility to register to receive these updates by email.
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