23rd Dec 2008 07:00
For immediate release: 0700hrs 23rd December 2008
Emerging Metals Limited
("EML", "Emerging Metals" or "the Company")
Unaudited interim financial statements for the six month period ended 30 September 2008
Emerging Metals Limited (AIM: EML), the mining company focused on minor and emerging metals, today announces its interim results for the six month period ended 30th September 2008.
CHAIRMEN'S STATEMENTDear Shareholders,Since admission to the AIM on 11 July 2008 Emerging Metals Limited hascontinued work on the feasibility study for the Tsumeb Slag Stockpiles Project,specifically the completion of drilling and trenching of the stockpiles and iscontinuing with metallurgical testing designed to determine the optimumprocessing method for the project, as previously planned. The feasibility studyis on schedule and on budget to be completed as required by the EML Weatherlyagreement.Additionally the Company has been active in reviewing in depth numerouspossible opportunities in a wide range of minor metals throughout the world, inAfrica, Asia, Europe, and North and South America. Opportunities reviewed haveincluded exposure to both physical quantities of minor metals and to additionalminor metals projects.With the recent dramatic negative developments in world equity markets theCompany's prudent approach to investment has proved to be fortuitous. Inparticular, the values of share prices in the natural resources sector are at afraction of their former levels and many companies are trading well below theirnet asset value. This situation is providing the Company with attractiveopportunities to gain exposure to additional minor metals projects by way ofacquiring stakes in certain other quoted companies In its current situation,the Company, with its US$20 million cash and marketable securities balance, andwith no debt, is in a strong position to acquire interests on attractive termsthat can be translated into excellent returns in the future. Accordingly, inthe coming months we expect to be looking at gaining exposure to moreadditional minor metals opportunities through acquisition of stakes in listedcompanies as well as projects that we would develop ourselves.It is in this spirit that EML has invested US$5.85 million in acquiring 6.28percent of Kalahari Minerals Plc, an AIM traded exploration and developmentcompany whose principal asset is a 39.1 per cent interest in Extract ResourcesLimited, an ASX listed uranium exploration and development company withsignificant uranium assets in Namibia, namely the Husab uranium projectcomprising the Rossing South, Ida Dome and Hildenhof deposits. Recentexploration results reinforce the Company's belief that the area has the strongpotential to host an economic uranium deposit. The acquisition of this interestin Kalahari Minerals gives Emerging Metals exposure to a world class uraniumresource, an emerging metal with a very favourable supply-demand outlook. Italso leverages on Emerging Metals existing platform and operations at Tsumeb inNamibia.The coming year should provide excellent opportunities for the Company toacquire holdings at unprecedented low cost with outstanding prospects for thefuture. With the extensive industry knowledge and contacts of the Board and ofmajor shareholders EML is well placed to capitalize on the current situationand to build the basis for the future of the Company.We would like to express our appreciation to the shareholders for theircontinued support.Stephen Dattels James MellonCo-chairman Co-chairman23rd December 2008Income statement Notes For the period For the period from 1 April 2008 from 4 July 2007 to 30 September (date of 2008 incorporation) to 31 March 2008 (Unaudited) ‚£ ‚£ Income 1(f) - - Operating expenses Personnel expenses (153,526) (66,141) Other costs 2 (976,986) (1,684,688) Exchange gains 446,036 78,222 ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ Net loss before interest (684,476) (1,672,607) Interest received 1(f) 193,591 174,031 ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ Loss before taxation (490,885) (1,498,576) Taxation - - ****** ****** Net loss for the period (490,885) (1,498,576) Basic loss per share ****** ****** Diluted loss profit per ‚£0.0015 ‚£0.0049share ‚£0.0014 ‚£0.0046
In the current and preceding periods, there were no recognised gains or losses other than those dealt with in the income statement.
Balance sheet Notes Unaudited at 30 Audited at 31 September 2008 March 2008 ‚£ ‚£ Assets Non-current assets
Intangible Fixed Assets 1(c),3 98,553 - Land options 1(d),4 4,818,455 4,818,455 ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ 4,917,008 4,818,455 Current assets Receivables and 1(g) 6,277 36,355prepayments Cash and cash equivalents 1(g) 11,229,118
9,056,161
¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬
Total assets 16,152,403 13,910,971
¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢
Equity and liabilities
Capital and reserves
Called up share capital 5 -
- Share premium 5 14,560,530 11,831,373 Share Option Reserve 5 3,504,144 3,504,144 Accumulated loss (1,989,461) (1,498,576)
¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬
Total equity 16,075,213 13,836,941 Current liabilities Trade and other payables 77,190
74,030
¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬
Total equity and 16,152,403 13,910,971liabilities
¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢
Statement of changes in equity
Share Share Share Accumulated Total Premium Option Capital Losses Reserve ‚£ ‚£ ‚£ ‚£ ‚£ Balance at 4 July 2007 - - - - - Net loss for the period - - - (1,498,576) (1,498,576) Shares issued 11,831,373 3,504,144 - - 11,831,373 ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ******** Balance at 31 March 11,831,373 3,504,144 - (1,498,576) (13,836,941)2008 ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ ******** Share Share Share Accumulated Total Premium Option Capital Losses Reserve ‚£ ‚£ ‚£ ‚£ ‚£ Balance at 31 March 11,831,373 3,504,144 - (1,498,576) (13,836,941)2008 Net loss for the period - - - (490,885) (490,885) Shares issued 2,729,157 - - - 2,729,157 ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ******** Balance at 30 September 14,560,530 3,504,144 - (1,989,461) (16,075,213)2008 ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ ********Cash flow statement Notes For the For the period period from from 4 July 1 April 2008 2007 (date of to 30 incorporation) September to 31 March 2 2008 008 (Unaudited) ‚£ ‚£
Cash flows from operating activities Operating loss including interest 7(a) (490,885)
(1,498,576)
Decrease / (increase) in receivables 7(b) 30,078 (36,355) Increase in payables 7(b) 3,160 74,030 ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬
Net cash outflow from operating activities (457,647) (1,460,901)
Cash flows from investing activities Intangible fixed asset additions 3 (98,553)
- Land options acquired 4 - (1,421,000) Cash flows from financing activities 5 2,729,157 15,335,517 Increase in share premium 4 - (2,302,470)
Ordinary shares issued in regard to land
options acquired Share options issued in regard to land 4 - (1,094,985)options acquired ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ Increase in cash and cash equivalents 2,172,957
9,056,161
Cash and cash equivalents at beginning of 9,056,161
-period ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ Cash and cash equivalents at the end of 11,229,118 9,056,161period ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢Notes
(forming part of the financial statements for the six months ended 30 September 2008)
1 Accounting policiesEmerging Metals Limited ("The Company") is a company domiciled in the BritishVirgin Islands. The condensed consolidated interim statements are as at and forthe six months ended 30 September 2008.The consolidated financial statements of the Company as at and for the periodfrom 7 July 2007 (date of incorporation) to 31 March 2008 are available onrequest from the Company's registered office at Craigmuir Chambers, Road Town,Tortola, British Virgin Islands.
The financial statements incorporate the principal accounting policies set out below.
a) Statement of complianceThese condensed consolidated interim financial statements have been prepared inaccordance with International Financial Reporting Standards ("IFRS") IAS 34Interim Financial Reporting. They do not include all of the informationrequired for full annual financial statements, and should be read inconjunction with the consolidated financial statements of the Company as at andfor the period from 7 July 2007 (date of incorporation) to 31 March 2008.
These condensed consolidated interim financial statements were approved by the Board of Directors on 19 December 2008.
b) Basis of preparation
The preparation of financial statements in conformity with IFRS requiresmanagement to make judgements, estimates and assumptions that affect theapplication of policies and reported amounts of assets and liabilities, incomeand expenses. The estimates and associated assumptions are based on historicalexperience and various other factors that are believed to be reasonable underthe circumstances, the results of which form the basis of making the judgementsabout carrying values of assets and liabilities that are not readily apparentfrom other sources. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision only affects that period or in the period of the revision and future periods if the revision affects both current and future periods.
c) Exploration & Evaluation Assets
Exploration & evaluation assets are derived from the fair value paid as consideration for the investment. An annual impairment review is carried out each year with any impairments going through the income statement.
d) Land options
In the opinion of the Directors, land options should be and thus are stated atcost. This is estimated to be the current market value of the options. Therewill be no amortisation of the premium paid.
e) Impairment
The carrying amounts of the Company's assets are reviewed at each balance sheetdate to determine whether there is any indication of impairment. If there isany indication that an asset may be impaired, its recoverable amount isestimated. The recoverable amount is the higher of its net selling price andits value in use.In assessing value in use, the expected future cash flows from the asset arediscounted to their present value using a pre-tax discount rate that reflectscurrent market assessments of the time value of money and the risks specific tothe asset.
An impairment loss is recognised whenever the carrying amount of an asset exceeds
it's recoverable amount.
For an asset that does not generate cash inflows that are largely independent of those from other assets, the recoverable amount is determined for the cash-generating unit to which the asset belongs. An impairment loss is recognised in the income statement whenever the carrying amount of the cash-generating unit exceeds its recoverable amount.
A previously recognised impairment loss is reversed if the recoverable amountincreases as a result of a change in the estimates used to determine therecoverable amount, but not to an amount higher than the carrying amount thatwould have been determined (net of depreciation) had no impairment loss beenrecognised in prior years.f) Revenue
There is no revenue to date as the Company has not commenced trading.
Interest income has been earned during the period, which is accrued on a timeapportion basis, by reference to the principal outstanding and the effectiveinterest rate applicable.g) Financial instrumentsMeasurement
Financial instruments are initially measured at cost, which includes transaction costs. Subsequent to initial recognition these instruments are measured as set out below.
Trade and other receivables
Trade and other receivables originated by the Company are stated at amortised cost less impairment losses.
Cash and cash equivalents
Cash and cash equivalents are measured at fair value and due on demand.
Financial liabilities
Non-derivative financial liabilities are recognised at amortised cost, comprising original debt less principal payments and amortisations.
h) Provisions
Provisions are recognised when the Company has a present legal or constructiveobligation as a result of past events, for which it is probable that an outflowof economic benefits will occur, and where a reliable estimate can be made ofthe amount of the obligation.Where the effect of discounting is material, provisions are discounted. Thediscount rate used is a pre-tax rate that reflects current market assessmentsof the time value of money and, where appropriate, the risks specific to theliability.i) Foreign currenciesTransactions in foreign currencies are recorded at the rate ruling at the dateof the transaction. Monetary assets and liabilities denominated in foreigncurrencies are retranslated at the rate of exchange ruling at the balance sheetdate. All differences are taken to the income statement.Non-monetary assets and liabilities that are measured in terms of historicalcost in a foreign currency are translated using the exchange rate at the dateof the transaction.2 Other costs For the period For the period from 1 April from 4 July 2008 to 30 2007 (date of September 2008 incorporation) to 31 March (Unaudited) 2008 ‚£ ‚£ Share option charge - 1,201,674 Professional fees 898,530 437,996 Travel and transport 32,237 37,020 Office expenses 46,219 7,998 ****** ****** 976,986 1,684,688 ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢
The Company has no employees other than the Directors.
3 Intangible Fixed Assets
Exploration and Total evaluation assets Cost ‚£ ‚£ At 1 April 2008 - - Additions 98,553 98,553 At 30 September 2008 ****** ****** 98,553 98,553 ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ Amortisation At 1 April 2008 - - Amortisation for period - - At 30 September 2008 ****** ****** - - ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ Net book value At 30 September 2008 98,553 98,553 ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ At 31 March 2008 - - ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢4 Land options
The consideration paid for the Tsumeb Option comprised ‚£1,421,000 in cash,21,899,698 ordinary shares issued at zero par value to Weatherly at a cost of ‚£0.05 per share. An option was also granted to Weatherly to subscribe for up to13,705,179 ordinary shares at ‚£0.05 per share, exercisable at any time for fiveyears from the date of completion of the Tsumeb Option Agreement.
Tsumeb Option Agreement
On 28 January 2008, the Company entered into an amended and restated option agreement with Ongopolo Mining Limited ("OML") under which the Company was granted an option to acquire all right, title and interest
The Company was granted an option to acquire all right, title and interest in and to the Tsumeb Slag Stockpiles (the "Tsumeb Option") in consideration of:
i. the payment by the Company to Ongopolo Mining Limited, or as it directs, of
‚£1,421,000 in cash;
ii. the issue and allotment of 21,899,698 Ordinary Shares credited as fully
paid to Weatherly; and
iii. the grant to Weatherly of an option over 13,705,179 Ordinary Shares.
The grant of the Tsumeb Option was subject to a number of conditions, whichwere satisfied on 29 January 2008. The exercise term of the Tsumeb Option (the"Tsumeb Option Period") shall expire on the 30 month anniversary of the date ofthe satisfaction of the conditions, such period comprising a total of 24 monthsfor completion of an initial programme of work, plus six months for a decisionby the Company to proceed with commercial production from any portion of theTsumeb Slag Stockpiles and announcement of that decision to AIM.Under the Tsumeb Option Agreement, OML provides the Company with a number ofwarranties regarding the Tsumeb Slag Stockpiles. In particular, OML warrants tothe Company that:
- it has the requisite power and authority to enter into and perform the Tsumeb Option Agreement;
- it is, and will remain during the Tsumeb Option Period, the legal and beneficial owner of 100 per cent. of the Tsumeb Slag Stockpiles; and
- no further consent, approval or authorisation of any governmental agency or other person is required by it for the entry into and performance of its obligations under the Tsumeb Option Agreement.
Under the Tsumeb Option Agreement, OML was required to provide the Company witha legal opinion from counsel duly qualified to practice in Namibia, confirmingOML's 100 per cent. ownership of the Tsumeb Slag Stockpiles (the "OML LegalOpinion"). Under the Tsumeb Option Agreement, if OML was unable to supply theOML Legal Opinion, OML and the Company would enter a new agreement, agreed ingood faith between the parties, establishing a contractual relationship betweenOML and the Company that would ensure that the Company was placed in the sameeconomic position as was the intention under the Tsumeb Option Agreement - withthe Company bearing the cost incurred and receiving the profit or other benefitarising out of the Tsumeb Slag Stockpiles. Under the Tsumeb Option Agreement,OML and the Company agreed that, in the event of termination of the TsumebOption Agreement, and in circumstances where the parties could not legallyenter or enforce the Toll Gate Agreement for whatever reason, the partiesagreed to take all such steps as necessary to return each other to the legaland financial position each was in prior to the execution of the Tsumeb OptionAgreement. In particular, under the Tsumeb Option Agreement it is agreed that:
* Weatherly and/or OML shall return to EML all consideration paid under the
Tsumeb Option Agreement together with interest at 2 per cent. above the base rate from time to time of Barclays Bank PLC per annum accruing monthly;
* Weatherly and/or OML shall return, transfer or cancel as directed by EML
all Ordinary Shares issued and allotted to Weatherly or OML under the Tsumeb Option Agreement; * Weatherly and/or OML shall return, cancel and/or extinguish all and any
options over Ordinary Shares granted to Weatherly or OML pursuant to the
Tsumeb Option Agreement; and
* OML shall pay the reasonable costs of EML incurred in the preparation,
negotiation and completion of the obligations under the Tsumeb Option
Agreement. 5 Share capital For the period For the period from 1 April from 4 July 2007 2008 to 30 (date of September 2008 incorporation) (Unaudited) to 31 March 2008 Authorised
The Company is authorised to issue an unlimited number of no par value shares of a
single class. Issued
330,759,300 ordinary shares of ‚£0.00 each
Share premium 1 share issued at incorporation 7,153
7,153
71,528,234 shares at ‚£0.0001 per share 214,584,704 shares at ‚£0.0500 per share 10,729,235
10,729,235
21,899,698 shares at ‚£0.0500 per share 1,094,985
1,094,985
21,956,663 shares at ‚£0.12 per share 2,729,157
- Total ******** ******** 14,560,530 11,831,373
¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢
Share Based Payments
A number of share options are in issue as at 30 September 2008, but noadditional options were issued in the period from 1 April to 30 September 2008.The value of the share options in issue has been calculated, and this expensewas recognised in the accounts to year end 31 March 2008.
6 Taxation
The Company is exempt from the provisions of the Income Tax Ordinance of the British Virgin Islands.
7 Notes to the cash flow statement
a) Operating loss before working capital changes
For the period For the period from 1 April from 4 July 2008 to 30 2007 (date of September 2008 incorporation) to 31 March (Unaudited) 2008 ‚£ ‚£ Loss before taxation (490,885) (1,498,576) Adjustment for: Depreciation - - ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ (490,885) (1,498,576) ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢b) Working capital changes For the period For the period from 1 April from 4 July 2008 to 30 2007 (date of September 2008 incorporation) (Unaudited) to 31 March 2008 ‚£ ‚£ Decrease/(increase) in trade and other 30,078 (36,355)receivables Increase in trade and other payables 3,160 74,030 ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ 33,238 (37,675) ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ 8 Financial instrumentsCredit riskExposure to credit risk
The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk at the reporting date was:
Carrying amount Notes 30 September 2008 (Unaudited) ‚£ Intangible Fixed Assets 3 98,553 Land options 4 4,818,455 Cash and cash equivalents 1(g) 11,229,118 ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢
The Company invests available cash and cash equivalents with an Isle of Man licensed bank, which has a strong history on the Island.
The Company has a nominal level of debtors, and as such the Company is able to determine that credit risk is considered minimal in relation to debtors.
The risk is managed by the Company by means of cash flow planning to ensure that future cash requirements are anticipated and, where financial instruments have to be sold to meet these requirements, the process is carried out in a controlled manner intended to minimise the liquidity risk involved.
Cash flow and funding risk
The Company is exposed to liquidity risk to the extent that it holds a land option for which no developed market exists. Therefore the Company might not be able to sell such a stake quickly at close to fair value.
Interest rate risk
The majority of the Company's current assets are cash held at bank. As a result, the Company is subject to risk due to fluctuations in the prevailing level of market interest rates.
Fair values of financial instruments
At 30 September 2008 the carrying amounts of cash resources, trade and otherreceivables, and trade and other payables approximate their fair values due totheir short-term maturities.- ends -Contact details Emerging Metals Blomfield Corporate Fox-Davies Capital GTH Limited Finance Limited Limited Communications Mitch Alland Toby Howell Daniel Fox-Davies Toby Hall Peter Trevelyan-Clark +44 (0) 1624 639396 +44 (0) 20 7489 +44 (0) 20 7936 +44 (0) 20 7153 4500 5200 8035
vendorRelated Shares:
OKYO.L