30th Sep 2005 07:00
Hambledon Mining PLC30 September 2005 FOR IMMEDIATE RELEASE 30 September 2005 HAMBLEDON MINING PLC Interim Results Hambledon Mining plc ("Hambledon" or the "Group" or the "Company"), anAIM-listed mining and exploration company developing precious metal deposits inKazakhstan, announces its interim results for the six months ended 30 June 2005. Highlights: • Open-pit project approved by the board in March • £5 million raised for the project; production expected later in 2006 • Resource uplift 45% (JORC) - June • Exploration of Tserkovka licence area commenced • Senior staff recruited Nicholas Bridgen, Chief Executive of Hambledon Mining plc, commented: "The first half of 2005 brought significant improvements to the Sekisovskoyeproject. In January we announced our very successful 2004 drilling results whichdemonstrated greater open-pit resources. As a result we have progressed theopen-pit as a stand alone project. The open-pit mine provides an efficient,viable and rapid route to production. "Recent drilling results from Sekisovskoye have been very encouraging. Furthergood dilation zones have been intercepted. Exploration of the newly acquiredTserkovka licence area has started and a further 20 drill-holes are planned forthe remainder of this season. "Whilst our current focus is on the open-pit, the Company continues withpreparations for the underground mine. "We remain on track to enter production later next year and we fully expect toexpand our resource base as new territories are added and further explorationresults are received." ENQUIRIES: Hambledon Mining PlcNicholas Bridgen, Chief Executive Tel: +00 7 300 733 8915 Bankside Consultants Tel: +44 207 367 8888Michael Spriggs/Michael Padley About Hambledon Mining plc Hambledon Mining plc is an AIM listed mining and exploration company which hasannounced the development of an open-pit project at its Sekisovskoye deposit inEast Kazakhstan, prior to the development of the much larger undergroundresources. Initial production from the open-pit is expected to be around 30,000- 35,000 ounces per annum, rising to around 100,000 ounces when the higher gradeunderground ore is processed. The Company also holds the rights to and isexploring the adjacent Tserkovka deposit. Any ore from these areas will betreated in an expanded plant at Sekisovskoye. - o - CHAIRMAN'S STATEMENT I am pleased to announce our financial results for the six months to 30 June2005. The first half of 2005 brought significant improvements to the Sekisovskoyeproject. In January we announced our very successful 2004 drilling results whichdemonstrated greater open-pit resources than previously anticipated and led, inMarch, to our board's approval of the open-pit project on a stand-alone basis.In March we raised £5 million towards the project costs and in June we announceda 45% uplift in our resource estimate, presented on the internationallyrecognised JORC basis. Since then, we have made good progress in the development of the open-pitproject. Optimisation is now complete and pit design and scheduling areunderway. Both the specification of the process plant and equipment, and thesiting of the major surface infrastructure, have been finalised. In common withthe mining industry in general, our projected capital costs have beenescalating, but the impact is being partially mitigated by successful sourcingof good second-hand equipment. One of the greatest challenges in the development process has been to recruitthe key senior staff with the skills and experience necessary to bring theproject into production. I am pleased to report that good progress has beenmade. In August, Neil Stevenson joined the group as Operations Manager bringingconsiderable international experience of both open-pit and undergroundoperations. Neil was responsible for bringing on line the open-pit operations atFirst Dynasty Mines, Armenia and the expansion of open-pit and undergroundoperations at Golden Star Resources, Ghana. In addition, Ian Petts joined asGroup Financial Controller in June. It is, of course, the Kazakh staff andwork-force that will ultimately make the project a success and it is satisfyingthat many of the key positions have now been filled with very high calibreemployees. Of the group's 46 employees, only four are expatriates and all ofthese live and work in Kazakhstan. Exploration of the newly acquired Tserkovka licence area has started and afurther 20 drill-holes are planned for the remainder of this season. Recentdrilling results from Sekisovskoye have been very encouraging and this programmecontinues the 2004 successes. Further good dilation zones have been interceptedwhich, when fully analysed, are likely to result in an even larger open-pit thansuggested by the current optimisation process. The high rate of discovery atSekisovskoye, even from drill-holes intended for technical, rather thanexploration purposes, bodes well for the future. When we start mining, we canexpect to encounter more mineralisation than had been discovered at the outset. The experience gained in the modelling of the open-pit is being applied to theunderground levels and it indicates that cheaper bulk-mining methods may be moreappropriate than those assumed at the pre-feasibility stage. SRK will commencethe underground mining study in the fourth quarter of this year once theunderground model has been finalised. Owing to the shortage of suitableunderground contract drillers, the Company has purchased an undergrounddrill-rig so that drilling can be carried out from the existing undergrounddevelopment before the start of open-pit mining precludes its further use. The Company continues to evaluate further exploration territory adjacent to ourexisting site and several applications are pending. Subject to timely regulatory approvals, we remain on track to enter productionlater next year. We fully expect to expand our resource base as new territoriesare added and further exploration results are received. George EcclesChairman29 September 2005 Resource statement JORC JORC Soviet Soviet Total Indicated Inferred C2 P1 Resource (ounces)Sekisovskoyeopen-pit &underground 1,110,304 248,528 - 1,400,000 2,758,832Tserkovka - - 145,000 241,000 386,000Feodulikha,Areas 4 & 5 - - - 354,000 354,000Total (ounces) 1,110,304 248,528 145,000 1,995,000 3,498,832 Troy oz = 31.10348g Silver included at gold equivalentAll figures rounded (1/60) This resource table was issued on 29 June 2005 and has not been updated inrespect of the 2005 drilling results or the continuing remodelling of the lowerlevels. An updated resource estimate will be issued in October 2005. Consolidated profit and loss account For the six month period ended 30 June 2005 6 month period 6 month period 12 month period to 30 June to 30 June to 31 December 2005 2004 2004 (unaudited) (unaudited) (audited) £'000 £'000 £'000 Administrative expenses- Exceptional expenditures - - (96)- Other administrative expenses (358) (189) (331) ---- ---- ----Operating loss (358) (189) (427) Net interest and similarcharges 55 (4) (11) Loss on ordinary activitiesbefore and after taxationand transferred toreserves (303) (193) (438) ---- ---- ----Retained loss for thefinancial (303) (193) (438) ==== ==== ==== Loss per ordinary share(UK pence) (0.13) (0.10) (0.22) Consolidated balance sheet As at 30 June 2005 30 June 30 June 31 December 2005 2004 2004 (unaudited) (unaudited) (audited) £'000 £'000 £'000 Fixed assets- Intangible assets - 307 672- Tangible assets 988 2 19 ---- ---- ---- 988 309 691 ------ ----- ---- Current assets- Debtors 107 99 13- Cash at bank and in hand 5,418 2,078 1,263 ------ ----- ----- 5,525 2,177 1,276 ------ ----- ----- Creditors: amounts fallingdue within one year (450) (686) (418) ------ ----- -----Net current assets 5,075 1,491 858 ------ ----- -----Net assets 6,063 1,800 1,549 ====== ===== ===== Capital and reserves- Called up equity share capital 262 200 200- Share premium account 6,813 2,069 2,069- Merger reserve (148) (148) (148)- Profit and loss account (864) (321) (572) ----- ----- -----Equity shareholders' funds 6,063 1,800 1,549 ===== ===== ===== Consolidated cash flow statement For the six month period ended 30 June 2005 6 month period 6 month period 12 month period to 30 June to 30 June to 31 December 2005 2004 2004 (unaudited) (unaudited) (audited) £'000 £'000 £'000 Net cash (outflow)/inflow from continuingoperating activities (400) (22) (428) Returns on investments andservicing of finance- Interest received 61 3 27- Interestpaid (12) (13) (16) --- ---- --- 49 (10) 11 === ==== ===Capital expenditure andfinancial investment- Purchase of fixed assets (300) (69) (453) ----- ---- ----Net cash (outflow)before financing (651) (57) (870) ==== ==== ==== Financing- Issue of ordinary share capital 4,806 2,121 2,119 (net of share issue expenses) ----- ----- ----- Increase in net cash inthe period 4,155 2,064 1,249 ===== ===== ===== Other primary statements For the six month period ended 30 June 2005 Statement of total recognised gains and losses 30 June 30 June 31 December 2005 2004 2004 (unaudited) (unaudited) (audited) £'000 £'000 £'000 Statement of total recognised gainsand lossesLoss for the financial period (303) (193) (438)Currency translationdifferences on foreigncurrency net investments 11 2 (2) ------- ------- -------Total recognised gains andlosses relating to thefinancial period (292) (191) (440) ====== ====== ====== Reconciliation of movements in shareholders' funds 30 June 30 June 31 December 2005 2004 2004 (unaudited) (unaudited) (audited) £'000 £'000 £'000 Reconciliation of movements in Groupshareholders' funds Total recognised gains and losses (292) (191) (440)New capital subscribed(net of costs) 4,806 2,121 2,119 ------ ------ ------Net change in shareholders'funds 4,514 1,930 1,679Opening shareholders' funds 1,549 (130) (130) ------ ------ ------Closing shareholders' funds 6,063 1,800 1,549 ====== ====== ====== Notes to the interim financial statements 1. The calculations of loss per share have been based on the retained lossbefore taxation for the period and on a weighted average of ordinary shares inissue during the period. At 1 January 2005 there were 199,765,328 shares in issue and on 1 April 200562,500,000 shares were issued at par resulting in 262,265,328 shares in issue at30 June 2005. The weighted average number of shares is 231,187,980 shares, and the dilutedweighted average number of shares taking account of share options granted is232,885,051 shares. 2. Exploration costs are capitalised as intangible assets until thedecision is made to proceed to development. During the period the Board made thedecision to proceed with development resulting in a transfer of capitalisedintangible assets to tangible fixed assets. 3. The unaudited interim financial information complies with the relevantfinancial reporting standards and the accounting bases and policies are appliedon a basis consistent with those set out in notes 1 to 3 in the Annual Reportand Accounts 2004. The financial information for the year ended 31 December 2004 has been extractedfrom the Group's statutory accounts for the period, which have been delivered tothe Registrar of Companies. The auditors' report on those accounts wasunqualified and did not contain any statement under section 237 of the CompaniesAct 1985. 4. The interim report is unaudited and does not constitute statutoryaccounts as defined in section 240 of the Companies Act 1985. 5. No dividend is proposed. 6. The interim report for the six months to 30 June 2005 was approved bythe Directors on 29 September 2005. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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