30th Mar 2007 14:00
Tanzania Gold PLC30 March 2007 Tanzania Gold Plc ("Tanzania Gold Plc" or "the Company") Interim Results for the six months ended 31 December 2006 Tanzania Gold Plc (TZG.L), the AIM listed exploration and development companyoperating in Tanzania, is pleased to announce its interim results for the sixmonths ended 31 December 2006. Highlights: - £1.7m cash in bank sufficient for next phase of exploration programme- Phase one drilling completed within budget and on time- Joint Venture earn-in terms ahead of schedule- Trenching and assaying continues for phase two exploration programme Commenting on the results, Clive Sinclair-Poulton, Chief Executive Officer, said: "The Board continues to believe in the potential of the Mkurumu projectfollowing the first phase of the exploration programme, which has beencompleted on time and within budget. Phase two of the exploration programmewill be built around the geological knowledge we have gained over the pastmonths. In the meantime, we are progressing with trenching and assaying, andwill release results to shareholders as they become available." For further information, please contact:Tanzania Gold Plc Tel: +353(0) 21 453 0053Clive Sinclair-Poulton, Chief Executive Tel: +353(0) 85 739 2674Email: [email protected] Partners LimitedJames Harris Tel: +44(0)20 7409 3494Matthew Chandler Media enquiries: St Swithins PR Limited Tel: +44(0)20 7929 4391Gary MiddletonEmail: [email protected] Chairman's statement I have pleasure in presenting the Interim Report for Tanzania Gold Plc (the"Company") for the six month period ended 31 December 2006. The period has been an active time for your Company, primarily in relation toour initial Drilling Programme that encompassed a total of twelve holes(including one collar re-drill), delineated into 1,041 metres of diamonddrilling. The direction of this programme was at the autonomy of our whollyowned subsidiary, Anglo Tanzania Gold Limited ("ATGL"), within its 44 squarekilometre Mkurumu joint venture project, located approximately 350 kilometresWest of Dar es Salaam, Tanzania. The results of the first phase of the drillingprogramme are the subject of a separate announcement released today. Under the terms and conditions of the Joint Venture agreement between ATGL andAshanti Exploration Tanzania Limited, executed on 10 May 2005, ATGL hascommitted to spend, in aggregate, US$650,000 on exploration activities on theMkurumu project over the two year period ending 9 September 2007. Pendingcertified conformance to such exploration and funding obligations, ATGL will beentitled to acquire 50 per cent of Ashanti Exploration Tanzania Limited's rightsover the Mkurumu Property, amounting to 46 per cent of the total Property. I am delighted to report that during November of last year, Ashanti ExplorationTanzania Limited formally acknowledged that ATGL's funding commitments for thefirst year to 9 September 2006 had been met and confirmed that the first 50 percent of its entitlement or a 23 per cent interest had been earned. In line with the work programme set out in the Competent Person's Reportpublished in September 2006, the Company has more than adequate funding stillavailable to meet its remaining obligations and earn the remaining 50 per centof its entitlement (remaining 23 per cent of the Property). The costs of the 2006 and 2007 drilling programme show we have alreadysubstantially met the spending requirements set out in the Joint Ventureagreement giving the Company confidence that it will be able to earn theremaining 23 per cent interest in the project well before the September 2007deadline. In light of our progress with the Mkurumu Property and in line with our overallInvestment Strategy, the Company is currently reviewing and evaluating potentialnew project opportunities to create value for our Shareholders. The board is extremely pleased with the result of the reverse takeover and ispleased to report that the Company and its subsidiaries are enjoying anefficient and complementary working relationship. On behalf of your Board of Directors, I would like to take this opportunity tothank all of our Shareholders for their continuing support and look forward toreporting further progress in the second half of the year. Gerard NealonChairman29 March 2007 TANZANIA GOLD PLC CONSOLIDATED PROFIT AND LOSS ACCOUNT Six months Six months Year ended ended ended 31 December 31 December 30 June 2006 2005 2006 (Unaudited) (Unaudited) (Audited) £'000 £'000 £'000 Distribution activities - (13) -Administration expenses (285) (60) (130) ________ ________ ________ Operating loss (285) (73) (130) Interest receivable 8 - - ________ ________ ________ Loss on ordinary activities beforetaxation (277) (73) (130) Taxation - - - ________ ________ ________ Loss on ordinary activities aftertaxation (277) (73) (130) ======= ======= ======= Loss per ordinary share (pence) Basic (1.630p) (0.037p) (0.07p) Fully diluted (1.580p) (0.035p) (0.06p) CONSOLIDATED BALANCE SHEET 31 December 31 December 30 June 2006 2005 2006 (Unaudited) (Unaudited) (Audited) £'000 £'000 £'000Fixed assetsIntangible assets 4,443 - -Investment in Joint Venture 317 - -Tangible assets 4 - - _________ _________ _________ 4,764 - - _________ _________ _________ Current assetsTrade and other receivables 130 5 98Cash at bank and in hand 1,660 604 3 _________ _________ _________ 1,790 609 101 Creditors: amounts falling due withinone year (317) (501) (49) _________ _________ _________Net current assets 1,473 108 52 _________ _________ _________Total assets less current liabilities 6,237 108 52 Creditors: amounts falling dueafter more than one year - - - Provisions for liabilities and charges - - - _________ _________ _________Net assets 6,237 108 52 ======== ======== ========Capital and reservesCalled up share capital 986 957 958Share premium account 10,620 4,180 4,180Reserves (6) - -Profit and loss account (5,363) (5,029) (5,086) __________ _________ _________Total equity shareholders' funds 6,237 108 52 ========= ======== ======== The interim report was approved by the Board of Directors on 29 March 2007. Clive Sinclair-Poulton Chief Executive Officer CONSOLIDATED CASH FLOW STATEMENT Six months Six months Year ended ended Ended 31 December 31 December 30 June 2006 2005 2006 (Unaudited) (Unaudited) (Audited) £'000 £'000 £'000Net cash (outflow) / inflow from operatingactivities (226) 408 (194) Returns on investments and servicing of financeInterest received 8 - -Loans (39) - -Capital expenditureJoint Venture expenditure (79) - -Purchase of tangible fixed assets (3) - - _________ _________ _________ Net cash (outflow) / inflow beforefinancing (339) 408 (194) FinancingShares issued 2,436 24 25Share issue costs (442) - - _________ _________ _________ Net cash inflow from financing 1,994 24 25 _________ _________ _________ Increase / (decrease) in cash in theperiod 1,655 432 (169) ======== ======== ======== TANZANIA GOLD PLC NOTES TO THE UNAUDITED INTERIM REPORT 1. The results for the six month periods ended 31 December 2006 and 31 December2005 are unaudited. They have been prepared using accounting bases and policiesconsistent with those used in the preparation of the financial statements ofTanzania Gold Plc for the year ended 30 June 2006. 2. The comparative figures for the year ended 30 June 2006 are extracted fromthe statutory accounts for that year which have been reported on by the auditors- such report was unqualified and did not contain a statement under section 237(2) or (3) of The Companies Act 1985 ("The Act"). The statutory accounts for theyear ended 30 June 2006 have been delivered to the Registrar of Companies. 3. The financial information contained in this report does not constitutestatutory accounts of the Company within the meaning of Section 240 of The Act. 4. Copies of this Interim Report will be sent to all shareholders and areavailable at the Company's registered office. 5. Loss per ordinary share The basic loss per ordinary share has been calculated using the loss for theperiod and the weighted average number of ordinary shares in issue during theperiod as follows Six months Six months Year Ended ended ended 31 December 31 December 30 June 2006 2005 2006 (Unaudited) (Unaudited) (Audited) £'000 £'000 £'000 Loss attributable to ordinaryshareholders (277) (73) (130) ======= ======= ======= Number Number NumberWeighted average number ofordinary shares in issue 17,064,576 198,819,507 198,927,309 Basic loss per share (pence) (1.630p) (0.037p) (0.070p) In September 2006, as part of the reverse takeover, a share consolidation tookplace with one new ordinary share of 0.2 pence each being exchanged for everytwenty existing ordinary shares of 0.01 pence each. The diluted loss per ordinary share, as defined in FRS 22, has been calculatedas shown below: Six months Six months Year Ended ended ended 31 December 31 December 30 June 2006 2005 2005 (Unaudited) (Unaudited) (Audited) £'000 £'000 £'000 Loss attributable to ordinaryshareholders (277) (73) (130) ======== ======= ======== Number Number NumberWeighted average numberof ordinary shares in issue as above 17,064,576 198,819,507 198,927,309 Dilution for share warrantsoutstanding 500,000 10,217,391 9,975,000 _________ __________ __________Diluted weighted average number ofshares in issue 17,564,576 209,036,898 208,902,309 ======== ========= ========= Diluted loss per share (pence) (1.580p) (0.035p) (0.050p) ======= ======= ======= 6. Statement of movements on reserves Called Up Share Profit Share premium and loss Capital account Reserves Account £'000 £'000 £'000 £'000 At 1 July 2006 957 4,180 - (5,086) Shares issued 29 7,008 - - Share issue costs - (568) - - Currency translationdifferences on foreigncurrency operations - - (6) - Deficit for the period - - - (277) _________ _________ _________ _________ At 31 December 2006 986 10,620 (6) (5,363) ======== ======== ======== ========= During the period ended 31 December 2006 the company issued 9,000,000 newordinary shares as consideration on the reverse takeover of Tanzania GoldLimited at a price of 50 pence per share, issued 4,872,500 new ordinary sharesat 50 pence per share by way of a placing with institutional and otherinvestors, and issued 200,000 new ordinary shares to Strand Partners Limited ata price of 50 pence per share in connection with its services as the Company'sNominated Adviser. 7. Reconciliation of movements in shareholders' funds Six months Six months Year ended ended ended 31 December 31 December 30 June 2006 2005 2006 (Unaudited) (Unaudited) (Audited) £'000 £'000 £'000 Loss for the period (277) (73) (130) Proceeds from issues of shares 6,468 24 25 Currency translation differenceson foreign currency operations (6) - - _________ ________ _________ Net increase / (decrease) inshareholders' funds 6,185 (49) (105)Opening shareholders' funds 52 157 157 _________ ________ _________ Closing shareholders' funds 6,237 108 52 ======== ======== ======== 8. Reconciliation of operating profit to net cash (outflow) / inflow fromoperating activities Six months Six months Year ended ended Ended 31 December 31 December 30 June 2006 2005 2006 (Unaudited) (Unaudited) (Audited) £'000 £'000 £'000 Operating loss (277) (73) (130)Add back: depreciation andamortisation 56 - -Less: bank interest received (8) - -Decrease in debtors 9 1 (92)(Decrease) in creditors (6) 480 28 ________ ________ ________Net cash (outflow) / inflow fromoperatingactivities after exceptional items (226) 408 (194) ======= ======= ======= 9. Analysis of changes in net funds 1 July Cash Non-cash 31 December 2006 flows changes 2006 £'000 £'000 £'000 £'000 Cash at bank and in hand 3 1,655 2 1,660 ======== ======== ======== ======== INDEPENDENT REVIEW REPORT BY THE AUDITORS TO TANZANIA GOLD PLC Introduction We have been instructed by the Company to review the financial information forthe six months ended 31 December 2006, which comprises the Consolidated Profitand Loss Account, the Consolidated Balance Sheet, the Consolidated Cash FlowStatement and the related notes. We have read the other information contained in the interim report andconsidered whether it contains any apparent misstatements or materialinconsistencies with the financial information. Directors' responsibilities The interim report, including the financial information contained therein, isthe responsibility of, and has been approved by, the directors. The directorsare responsible for preparing the interim report which has been prepared on thebasis that the accounting policies and presentation applied to the interimfigures should be consistent with those applied in preparing the precedingannual accounts except where any changes, and the reasons for them, aredisclosed. Review of work performed We conducted our review in accordance with guidance contained in Bulletin 1999/4issued by the Auditing Practices Board for use in the United Kingdom. A reviewconsists principally of making enquiries of group management and applyinganalytical procedures to the financial information and underlying financial dataand based thereon, assessing whether the accounting policies and presentationhave been consistently applied unless otherwise disclosed. A review excludesaudit procedures such as tests of controls and verification of assets,liabilities and transactions. It is substantially less in scope than an auditperformed in accordance with United Kingdom Auditing Standards and thereforeprovides a lower level of assurance than an audit. Accordingly, we do notexpress an audit opinion on the financial information. Review conclusion On the basis of our review we are not aware of any material modifications thatshould be made to the financial information as presented for the six monthsended 31 December 2006. UHY Hacker YoungChartered AccountantsRegistered auditorsLondon29 March 2007 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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