5th Sep 2007 07:01
African Minerals Ltd05 September 2007 5 September 2007 African Minerals Limited ("African Minerals" or "the Company") 2007 Interim Results Exploration Results Underpin Strategy to Become a Diversified Minerals Producer African Minerals Limited (AIM:AMI), previously known as Sierra Leone DiamondCompany Limited, the minerals and diamond exploration and production companywith interests in Sierra Leone, West Africa today announces its interimfinancial results for the six months ended 30 June 2007 and an update on theCompany's progress. Highlights • Tonkolili Iron Ore Project: - A high magnetic response, interpreted to represent Banded Iron Formation, has been defined to extend over 28km of strike with a maximum width of 1.5km - Conceptually, potential for in excess of 2 billion tonnes of contained iron ore - Mineralisation proven to 300m and still open at depth - Export product grades of 68% to 70% Fe • Marampa Iron Ore Project: - 20km strike length of prospective iron ore formation - Located 70kms from Pepel deep water port • Base Metals and Gold: - Aeromagnetic interpretation and geochemistry have produced 25 priority targets with the potential for drilling, 14 of which are considered to be of a high priority • Lovetta Uranium anomaly: - High priority target of approximately 160km2 - Encouraging scintillometer survey results received • Diamond Projects: - Rough diamond sales from the Konama alluvial mine resulted in gross proceeds of approximately US$8.5 million. A total of 18,071.45 carats were sold during the six month period to 30 June 2007 at an average price of US$468.85 per carat. At the period end, rough diamond stock amounted to 3,850.54 carats. - On 24 July 2007, the Company announced the discovery of a kimberlite in the south west of Sierra Leone at the Lake Popei project. • Financials: - Gross sale proceeds from alluvial diamond sales amounted to US$8.5 million during the period which resulted in US$7.5 million net revenue after government royalties and selling costs. - Loss after taxation for the period was US$8.0 million which equated to 6.15 cents per share. - At the period end, the Company had cash at bank and short term deposits of US$9.0 million. • Subsequent to the period end, on 25 July 2007, the Company announced it had raised £31.85 million before expenses by way of placing of 24,500,000 new common shares at a price of 130 pence per share. There was great interest in the placing with significant unfilled demand remaining from investors. • The Company was very pleased to appoint Mr. Roy Pitchford as Non-Executive Director with effect from 23 July 2007. Mr. Pitchford has over 20 years' senior management and executive experience in Southern Africa, 13 years of which have been in the mining industry. • The Company is well advanced in the key appointment of an iron ore expert from a major mining company who has significant industry experience. • Subsequent to the period end, the Company changed its name to African Minerals Limited from Sierra Leone Diamond Company Limited. • Metallurgical test work, engineering and significant drilling programmes have commenced at the iron ore projects. • Further sampling analysis has been programmed for uranium and base metal targets with the aim of developing drill targets. Commenting on the Company's progress, Mr Frank Timis, Executive Chairman ofAfrican Minerals said: "We are delighted with the initial results from our multiple explorationprojects and are particularly encouraged by the significant progress in both ofour iron ore prospects. These results are just the beginning of the Company'splanned transformation into a diversified minerals producer on the Africancontinent." "The strength of our portfolio of assets was clearly endorsed by investors'strong response to the recent equity placing. With funds now in place toaccelerate the development of our iron ore, uranium, base metals and goldprojects, we are now well positioned to unlock significant further shareholdervalue." Enquiries: African Minerals Limited Tel: +44 (0) 20 7849 3002Frank TimisJamie Alpen Canaccord Adams Limited Tel: +44 (0) 20 7050 6500Mark AshurstMike Jones Citigate Dewe Rogerson Tel: +44 (0) 20 7638 9571Media enquiries: Martin Jackson / Kate DelahuntyAnalyst enquiries: Scott Fulton African Minerals Limited ("African Minerals" or "the Company") (previously known as Sierra Leone Diamond Company Limited) 2007 Interim Results for the six months ended 30 June 2007 Chairman's Statement Overview I am very pleased to report further progress in the Company's strategy to becomea diversified minerals producer on the African continent. Last month, weannounced an update on our key exploration activities highlighting the potentialfor two significant iron ore deposits as well as encouraging prospects for othercommercial commodities including base metals, uranium, gold and diamondiferouskimberlites. Following this announcement, the Company raised £31.85 millionbefore expenses to accelerate the development of these exploration projects, inparticular the iron ore deposits. This was achieved by way of a placing of newshares and the amount raised represented a considerable increase over theproposed placing due to strong investor demand. In line with our strategy tobecome a diversified minerals producer on the African continent and ourexploration progress, the Company recently changed its name to African MineralsLimited on the approval of shareholders. Exploration Review Since its admission to AIM in 2005, the Company's activities in Sierra Leonehave evolved beyond diamond exploration and production. In addition to the ironore projects at Tonkolili and Marampa, the Company has for the past two yearsbeen undertaking a countrywide, multi-element analysis of stream and tillsediments, primarily to determine sources of diamonds. As a result of thisprogramme, the Company has located several sites which offer the potential forthe discovery of base, precious and minor metals. The Company recently announcedan update on its iron ore projects and other exploration activities, which issummarised below. Tonkolili Iron Ore Project In 2004, the Company flew the first aeromagnetic survey in Sierra Leone. Theresultant data has now been processed by independent, Perth based geophysicalconsulting group, Resource Potentials. A high magnetic response, interpreted torepresent Banded Iron Formation ("BIF"), has been defined to extend over 28km ofstrike with a maximum width of 1.5km. In addition 40,000m of surface channelsampling has been completed over 10km of strike verifying BIF and iron ("Fe")mineralization. A 3D geophysical inversion model has been completed using theavailable geophysical and geological data. At the Numbara prospect, which occurs at the southern extent of the magneticresponse, reconnaissance core drilling has commenced. Core hole, NUM-DD-003, wasdrilled inclined at 60 degrees to a depth of 304m and this hole intersected BIFfrom 36m and ended in mineralised BIF at the end of the hole. Thismineralisation remains open at depth. The entire 304m of NUM-DD-003 core has been dispatched to independentmetallurgical testing laboratory, AMDEL Limited in Perth, Australia formetallurgical test work. Results from this test work have shown that a productgrading 68% to 70% Fe can be produced. In addition the BIF is relatively softleading to lower crushing and grinding costs. Having regard for the three dimensional geophysical model, available geologicalinformation and preliminary metallurgical results, a conceptual mineralisedenvelope potentially containing in excess of two billion tonnes of containediron ore exists at Tonkolili. The Company has scheduled a work program of up to 200,000m of drilling to definethe extent of the Tonkolili mineralisation. Further metallurgical test work,flowsheet development and preliminary engineering are to be undertaken tocomplete a scoping study by the second quarter of 2008. The Tonkolili project is located approximately 150km from the Pepel deep waterport, where suitable stockpiling and shiploading infrastructure, requiringrefurbishment, already exists. Marampa Iron Ore Project The Company's Marampa iron ore project is contiguous with the historical Marampamine, which was in operation between 1933 and 1975. Interpretation of aeromagnetic and ground gravity surveys by Resource Potentialshas defined 20 km of prospective strike extending out from the historicalMarampa mine. Five targets have been defined; two of which correspond to significant gravityanomalies and represents high priority, 'walk-up' drill targets. Independentgeophysical consultants, Resource Potentials, believe these anomalies have thepotential to host haematite mineralisation. The Company is commencing a drilling campaign to define the extent of ironmineralisation along with initial metallurgical test work, flowsheet developmentand preliminary engineering. An engineering study is being commissioned todefine the cost of refurbishing existing rail and port infrastructure. The Marampa project is located approximately 70km from the Pepel deep waterport. Base Metals and Gold Over 300,000 line km of aeromagnetic interpretation is now complete and theCompany has received results for 6,157 stream sediment samples that have beenanalysed for multiple elements. Aeromagnetic interpretation and coincidentgeochemistry resulted in 14 high priority, 11 priority targets and 40geophysical anomalies being identified as potential drill targets. Of these, twohigh priority targets have been sampled from the Sula Mountains region and fromthe Gori Hills area. We are awaiting sampling results from a third high prioritytarget known as Nimini Hills. Soil results have returned values up to 6.4 g/tgold and rock chips from quartz vein in BIF up to 9.3 g/t gold. Uranium Exploration The Company's high priority uranium target, the Lovetta anomaly which comprisesan area of 160km2, has been soil sampled on a 50m by 800m spacing over a 17km by5km area and surveyed using a hand held scintillometer. The survey resultsreceived show a 7km by 1km area greater than 220 counts per minute with a peakof 1,200 counts per minute. This area is currently being infilled with a 25m by100m spaced grid, which totals 59km of scintillometer survey lines combined withgeological mapping and rock chip sampling of the radiometric anomalous areas.The core area is a considered a high priority drilling target. Kimberlite Exploration As a result of the continued follow up sampling being undertaken in Sierra Leoneand the compiling of these results with the available aeromagnetic survey datathe Company has been able to refine its drilling target potential. Drilling hasnow commenced and on 24 July 2007 the Company announced the discovery of akimberlite in the south west of the country in the Lake Popei project area. Core drilling has been undertaken over a number of drill traverses resulting inthe intersection of a primary kimberlite. Drilling is ongoing to determine thedimensions of this body. Sample results from the first two kimberliteintersections have been received from Mineral Services, an independentlaboratory in South Africa, which indicate low potential for economic diamondmineralisation. So far as the Company is aware, no known kimberlite haspreviously been discovered in this part of the country. Elsewhere in the country 13 high priority aeromagnetic targets, with coincidentpositive kimberlite grains and 10 high priority drainage targets have beendefined and these will form the basis of future kimberlite drilling programmes. Alluvial Diamond Operations The Company's alluvial diamond operations at Konama are yet to reach steadystate levels of production. The on-going bulk sampling programme continues atthe operations in order to define an economic resource. Diamonds produced duringthe bulk sampling programme will continue to be sold through an industryrecognised diamond marketing company to maximise value. The Company completed two sales of rough diamonds during the period both fullycompliant with the Kimberley Process Certification Scheme. A total of 18,071.45carats were sold during the period at an average price of US$468.85 per caratrealising gross sales proceeds of approximately US$8.5 million (US$7.5 millionnet of government royalties and selling expenses). We were pleased with theoverall quality of carats produced at the mine. Financial Review The financial performance of the Company throughout the six month period to 30June 2007 reflects expenditure on its extensive countrywide, multi-elementexploration portfolio and the continued development of the alluvial operations. The Company completed two more sales of rough diamonds during the period whichgenerated total net revenue of US$7.5 million. Loss after taxation for the six month period ended 30 June 2007 was US$8.0million (2006: US$1.8 million). Loss per share was 6.15 cents (2006: 1.78cents). The total assets of the Group amounted to approximately US$84 million (2006:US$58 million) as at the period end which includes intangible assets amountingto approximately US$38 million. Intangible assets relate to accumulated deferredexploration and evaluation costs in respect of the Company's licence interestsin Sierra Leone. The Company's accounting policy is to capitalise these costspending determination of the feasibility of the project to which they relate. On 25 July 2007, the Company announced that it had completed an institutionalplacing of 24,500,000 new common shares at a price of 130 pence per share,raising £31.85 million (approximately US$65.7 million), before expenses. Thefunds raised will enable the Company to finance scoping studies on the Tonkoliliand Marampa iron ore projects and accelerate exploration programmes at its basemetals, uranium and gold projects. As at 30 June 2007, the Company had cash at bank and short-term deposits ofUS$9.0 million (2006: US$5.9 million). Board Changes Mr. Roy Pitchford joined the Board on 23 July 2007 as an independentnon-executive director. Mr. Pitchford has over 20 years' senior management andexecutive experience in Southern Africa, 13 years of which have been in themining industry. His appointment is an important step in the plannedstrengthening of the Board as the Company accelerates the implementation of itslong term strategy to become a diversified minerals producer. Mr. Francesco Scolaro stepped down from the Board on 23 July 2007. I would liketo thank Mr. Scolaro for his contribution to the Company. His commitment duringour rapid growth has been considerable and I wish him all the best in his futureendeavours. Name Change The Company changed its name to African Minerals Limited shortly following theperiod end. The Company's new ticker code is "AMI" and the new Company websiteaddress is www.african-minerals.com. Outlook The Company aims to unlock significant further shareholder value through thesuccessful exploration for, and development of, iron ore, base metals, uranium,gold and kimberlite resources on the African continent. We are pleased with theprogression of our exploration activities to date and, with our recent funding,we are now well positioned to accelerate work programmes within our highlyprospective exploration portfolio. In the near term, we will also berelinquishing, on a phased basis, licences in Sierra Leone which in theCompany's opinion do not demonstrate future economic viability. The Company will also continue to search for new business opportunities inAfrica which meet rigorous acquisition criteria in line with its strategy tobecome a diversified minerals producer on the African continent. We continue toenjoy the on-going support from the Government and people of Sierra Leone. Frank TimisExecutive Chairman4 September 2007 The information in this report that relates to Iron Ore Exploration Results,Mineral Resources and / or Ore reserves is based on information compiled byMatthew Cooper of Resource Potentials, an independent geophysical consultinggroup, and G V Ariti of J Ariti and Associates Pty Ltd, an independent projectmanagement and metallurgical consultancy who are technical consultants who meetthe requirements as qualified persons for the purposes of the AIM Guidance Noteon Mining, Oil and Gas dated March 2006 in terms of the iron ore industry.Mathew Cooper is a Member of the Australian Society of Exploration Geophysicistsand G V Ariti is a Member of The Australasian Institute of Mining andMetallurgy. The information in this report that relates to Diamond Exploration Results,Mineral Resources and/or Ore reserves is based on information compiled by P IYoung, Pr. Sci Nat (reg. No 400270/05), who is a Member of the GeologicalSociety of South Africa. Paul Young is a full-time employee of the Company andmeets the requirements as a qualified person for the purposes of the AIMGuidance Note on Mining, Oil and Gas dated March 2006 in terms of the diamondindustry. The information in this report that relates to Base Metals, Gold and UraniumResults, Mineral Resources and/or Ore reserves is based on information compiledby Alexander Meyer, who is a Member of The Australasian Institute of Mining andMetallurgy. Alexander Meyer, VP Base Metals and Gold Exploration is a full-timeemployee of the Company and meets the requirements as a qualified person for thepurposes of the AIM Guidance Note on Mining, Oil and Gas dated March 2006 interms of Base Metals, Gold and Uranium exploration. It should be noted that potential quantities in this report are conceptual innature and insufficient exploration has been undertaken to define a MineralResource and it is uncertain if further exploration activities will result inthe determination of a Mineral Resource. Some statements in this news release are forward looking and therefore involveuncertainties or risks that could cause actual results to differ materially.Such forward looking statements include comments regarding exploration work.Actual results could differ materially from those anticipated. The Companydisclaims any obligation to update forward looking statements. AFRICAN MINERALS LIMITED INDEPENDENT REVIEW REPORT TO AFRICAN MINERALS LIMITED Introduction We have been instructed by the company to review the financial information forthe six months ended 30 June 2007 which comprises the consolidated incomestatement, the consolidated balance sheet, the consolidated cash flow statement,the consolidated statement of changes in equity and the related notes. We haveread the other information contained in the interim report and consideredwhether it contains any apparent misstatements or material inconsistencies withthe financial information. This report is made solely to the company and inaccordance with Bulletin 1999/4 issues by the Auditing Practices Board. Our workhas been undertaken so that we might state to the company those matters we arerequired to state to them in an independent review report and for no otherpurpose. To the fullest extent permitted by law, we do not accept or assumeresponsibility to anyone other than the company, for our review work, for thisreport, or for the conclusions we have formed. Directors' responsibilities The interim report, including the financial information contained therein, isthe responsibility of, and has been approved by the directors. The directors areresponsible for preparing the interim report in accordance with the rules of theLondon Stock Exchange for companies trading securities on the AIM which requirethat the half-yearly report be presented and prepared in a form consistent withthat which will be adopted in the company's annual accounts having regard to theaccounting standards applicable to such annual accounts. Review work performed We conducted our review in accordance with guidance contained in Bulletin 1999/4issued by the Auditing Practices Board. A review consists principally of makingenquiries of group management and applying analytical procedures to thefinancial information and underlying financial data based thereon, assessingwhether the accounting policies and presentation have been consistently appliedunless otherwise disclosed. A review excludes audit procedures such as tests ofcontrols and verification of assets, liabilities and transactions. It issubstantially less in scope than an audit performed in accordance with AuditingStandards and therefore provides a lower level of assurance than an audit.Accordingly we do not express 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 30 June 2007. SHIPLEYS LLPChartered AccountantsLondon, UK4 September 2007 AFRICAN MINERALS LIMITED CONSOLIDATED INCOME STATEMENT For the six month period ended 30 June 2007 Period ended Period ended Year ended 30 June 30 June 31 December 2007 2006 2006 Note US$ US$ US$ Revenue 7,492,811 - 1,077,560 Cost of sales (10,038,104) - (1,520,037) Gross loss (2,545,293) - (442,477) Net operating expenses 3,4 (5,930,703) (1,955,095) (6,555,597) Operating loss (8,475,996) (1,955,095) (6,998,074) Interest receivable 472,862 153,102 215,759Interest payable - - (34,710) Loss before tax (8,003,134) (1,801,993) (6,817,025) Tax - - 995,474 Loss for the period (8,003,134) (1,801,993) (5,821,551) Loss per share Basic and diluted loss per share - cents 5 6.15 1.78 5.34 All activities are continuing operations. There were no recognised gains and losses other than those stated above. AFRICAN MINERALS LIMITED CONSOLIDATED BALANCE SHEET As at 30 June 2007 30 June 30 June 31 December 2007 2006 2006 Note US$ US$ US$ Non-current assetsIntangible fixed assets 6 38,059,848 34,587,430 30,747,662Tangible fixed assets 32,007,657 16,958,560 31,035,102Deferred tax asset 1,520,562 525,088 1,520,562Total non-current assets 71,588,067 52,071,078 63,303,326 Current assetsInventories 2,181,388 - 1,976,109Trade and other receivables 1,157,116 261,872 259,917Short term investments 8,901,968 - 21,538,435Cash and cash equivalents 94,582 5,924,267 2,095,756Total current assets 12,335,054 6,186,139 25,870,217 Total assets 83,923,121 58,257,217 89,173,543 EquityShare capital 7 1,300,582 1,112,349 1,300,032Share premium account 101,190,334 67,943,423 101,056,581Equity reserves 2,966,677 3,250,314 1,940,026Translation reserve (311,744) (311,744) (311,744)Profit and loss account (24,459,117) (14,598,927) (16,455,983)Total Equity 80,686,732 57,395,415 87,528,912 Non-current liabilitiesProvisions 438,962 - 438,962Total non-current liabilities 438,962 - 438,962 Current liabilitiesTrade and other payables 2,797,427 861,802 1,205,669 Total liabilities 3,236,389 861,802 1,644,631 Total equity and liabilities 83,923,121 58,257,217 89,173,543 AFRICAN MINERALS LIMITED CONSOLIDATED CASH FLOW STATEMENT For the six month period ended 30 June 2007 Period ended Period ended Year ended 30 June 30 June 31 December 2007 2006 2006 US$ US$ US$ Loss for the period (8,003,134) (1,801,993) (6,817,025)Share-based payments 1,160,954 666,318 1,546,585Depreciation of tangible fixed assets 2,433,576 1,426,486 3,190,671Loss on disposal - - 82,728Interest received (472,862) (153,102) (215,759)Interest paid - - 34,710Operating profit/(loss) before working capital (4,881,466) 137,709 (2,178,090)changesIncrease in inventories (205,279) - (1,976,109)Increase in debtors (897,199) (27,410) (25,455)Increase in creditors 1,591,758 651,177 995,044Cash flow from operating activities (4,392,186) 761,476 (3,184,610)Interest paid - - (34,710)Net cash flow from operating activities (4,392,186) 761,476 (3,219,320) Cash flows from Investing activitiesInterest received 472,862 153,102 215,759Payments to acquire tangible assets (3,406,131) (10,144,797) (24,441,755)Payments to acquire intangible assets (7,312,186) (12,379,394) (9,727,161)Decrease/(increase) in short term deposits with 12,636,467 15,480,000 (6,058,435)banksNet cash inflow/(outflow) from Investing activities 2,391,012 (6,891,089) (40,011,592) Cash flows from Financing activitiesProceeds of ordinary share issue - - 25,253,177Proceeds of exercise of options - 2,592,037 5,165,255Proceeds of exercise of warrants - 9,000,000 14,446,393Loan proceeds - - 3,100,000Loan repayment - - (3,100,000)Net cash inflow from Financing activities - 11,592,037 44,864,825 Net (decrease)/increase in cash and cash (2,001,174) 5,462,424 1,633,913equivalents Cash and cash equivalents at beginning of period 2,095,756 461,843 461,843 Cash and cash equivalents at end of period 94,582 5,924,267 2,095,756 AFRICAN MINERALS LIMITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY For the six month period ended 30 June 2007 Six month period ending 30 June 2007 Share Profit and Share Premium Equity Translation loss capital Account reserves Reserves account Total US$ US$ US$ US$ US$ US$As at 1 January 2007 1,300,032 101,056,581 1,940,026 (311,744) (16,455,983) 87,528,912Allotments during the period 550 133,753 - - - 134,303Share-based payments - - 1,026,651 - - 1,026,651Reserves transfer - - - - - -Loss for the period - - - - (8,003,134) (8,003,134)As at 30 June 2007 1,300,582 101,190,334 2,966,677 (311,744) (24,459,117) 80,686,732 Six month period ending 30 June 2006 Share Profit and Share premium Equity Translation Loss Capital account Reserves Reserves Account Total US$ US$ US$ US$ US$ US$As at 1 January 2006 967,632 54,255,510 3,211,082 (311,744) (13,183,427) 44,939,053Allotments during the period 144,717 13,687,913 - - - 13,832,630Share-based payments - - 425,725 - - 425,725Reserves transfer - - (386,493) - 386,493 -Loss for the period - - - - (1,801,993) (1,801,993)As at 30 June 2006 1,112,349 67,943,423 3,250,314 (311,744) (14,598,927) 57,395,415 AFRICAN MINERALS LIMITED NOTES TO THE INTERIM FINANCIAL STATEMENTS For the six month period ended 30 June 2007 1. ACCOUNTING POLICIES The interim financial statements, which are unaudited, have been prepared inaccordance with International Accounting Standard 34, "Interim FinancialReporting" adopted by the International Accounting Standards Board (IASB). Thisinterim report does not include all the notes of the type normally included inan annual financial report. Accordingly, this report is to be read inconjunction with the Annual Report for the year ended 31 December 2006 and anypublic announcements made by the Company during the interim reporting period. The unaudited interim financial statements for the six months ended 30 June 2007do not constitute statutory accounts and have been drawn up using accountingpolicies and presentation consistent with those applied in the audited accountsfor the year ended 31 December 2006. The financial information for the year ended 31 December 2006 has been extractedfrom the statutory accounts for that period. The auditors report for the yearended 31 December 2006 was unqualified. The financial information for the six month period ended 30 June 2006 has beenextracted from the interim results for that period. 2. DIVIDENDS No dividends were paid or proposed during the period. 3. GEOGRAPHICAL ANALYSIS OF EXPENSES Six month period ending 30 June 2007 Bermuda Sierra UK Total Leone US$ US$ US$ US$ Depreciation - 2,414,547 19,029 2,433,576Employee costs 447,601 195,313 330,479 973,393Foreign exchange differences (169,365) 6,671 (8,039) (170,733)Other operating charges 822,396 - 845,420 1,667,816Share-based payments 1,026,651 - - 1,026,651 2,127,283 2,616,531 1,186,889 5,930,703 Six month period ending 30 June 2006 Bermuda Sierra UK Total Leone US$ US$ US$ US$ Depreciation - 1,413,925 12,560 1,426,485Employee costs 339,093 - 94,862 433,955Foreign exchange differences (656,085) (5,714) (8,238) (670,037)Other operating charges 196,927 - 142,040 338,967Share-based payments 425,725 - - 425,725 305,660 1,408,211 241,224 1,955,095 Year ending 31 December 2006 Bermuda Sierra UK Total Leone US$ US$ US$ US$ Depreciation - 3,164,445 26,226 3,190,671Loss on disposal - 82,728 - 82,728Employee costs 1,023,923 97,829 279,883 1,401,635Foreign exchange differences (873,106) (5,375) (7,822) (886,303)Other operating charges 661,020 106,149 693,705 1,460,874Share-based payments 1,305,992 - - 1,305,992 2,117,829 3,445,776 991,992 6,555,597 4. NET OPERATING EXPENSES Period ended Period ended Year ended 30 June 30 June 31 December 2007 2006 2006 US$ US$ US$ Depreciation 2,433,576 1,426,485 3,190,671Loss on disposal - - 82,728Employee costs 973,393 433,955 1,401,635Foreign exchange differences (170,733) (670,037) (886,303)Other operating charges 1,667,816 338,967 1,460,874 4,904,052 1,529,370 5,249,605Share-based payments:Options 1,026,651 425,725 1,305,992 5,930,703 1,955,095 6,555,597 5. LOSS PER SHARE The calculation of loss per share is based on the loss for the six month periodended 30 June 2007 of US$8,003,134 (six month period ended 30 June 2006:US$1,801,993) and on a weighted average of 130,054,898 (six month period ended30 June 2006: 100,797,444) common shares of US$0.01 each in issue during the sixmonth period ended 30 June 2007. The diluted loss per share is the same as thebasic loss per share. Period ended Period ended Year ended 30 June 30 June 31 December 2007 2006 2006 US$ US$ US$ Loss for the period (8,003,134) (1,801,993) (5,821,551) Shares Shares SharesBasic weighted average number of common shares in issue 130,054,898 100,797,444 108,843,600 Basic loss per share - cents 6.15 1.78 5.34 6. INTANGIBLE FIXED ASSETS US$CostAt 1 January 2007 30,747,662Additions 7,312,186Transfer to tangible assets -As at 30 June 2007 38,059,848AmortisationAt 1 January 2007 -Charge for the period -As at 30 June 2007 -Net book valueAt 30 June 2007 38,059,848At 31 December 2006 30,747,662 Intangible fixed assets comprise of the cost of purchasing mineral explorationlicences and certain deferred exploration expenditure on the Company's minerallicences located in Sierra Leone. The directors regularly assess the potentialof each mineral licence and write off any deferred exploration expenditure thatthey believe to be unrecoverable. 7. CALLED UP SHARE CAPITAL Number of Period ended Number of Period ended shares 30 June shares 30 June 2007 2006 US$ US$AuthorisedCommon shares of US$ 0.01 each 250,000,000 2,500,000 250,000,000 2,500,000Preference shares of US$ 0.01 each 100,000,000 1,000,000 100,000,000 1,000,000 Issued and fully paidAt 1 January 130,003,241 1,300,032 96,763,240 967,632Allotments during the period 55,000 550 14,471,667 144,717At 30 June 130,058,241 1,300,582 111,234,907 1,112,349 On 12 January 2007, 55,000 new common shares were issued for consideration ofUS$134,303 pursuant to a contractual obligation to award shares by way of bonusfollowing achievement of performance targets. 8. EQUITY RESERVES a.) OPTIONS The Company has issued share options under a share option scheme adopted by theCompany on 5 November 2004. Movements in share options over US$ 0.01 commonshares in the Company in the period were as follows: Number of optionsAs at 1 January 2007 5,825,000Options granted in the 2,160,000periodOptions lapsed in the (500,000)periodOptions exercised in the period -As at 30 June 2007 7,485,000 The stock-based compensation recognised as an expense in the period to 30 June2007 was US$1,026,651 (2006: US$425,725). b.) WARRANTS Movements in warrants over US$ 0.01 common shares in the Company in the periodwere as follows: Number of warrantsAs at 1 January 2007 1,100,000Warrants granted in the period -Warrants lapsed in the -periodWarrants exercised in the period -As at 30 June 2007 1,100,000 9. POST-BALANCE SHEET EVENTS On 25 July 2007, the Company completed a placing of 24.5 million new commonshares of US$0.01 at £1.30 per share resulting in gross proceeds of £31.85million before issue expenses. 10. RELATED PARTY TRANSACTION During the period, US$107,474 (six month period ended 30 June 2006: US$nil)excluding VAT in respect of office rental costs and US$4,961 (six month periodended 30 June 2006: US$nil) excluding VAT for miscellaneous office services waspayable to Regal Petroleum PLC, of which Francesco Scolaro is also a director. As at 30 June 2007, US$153 (30 June 2006: US$nil) was payable to Regal PetroleumPLC 11. REPORTING JURISDICTIONS The Company is a reporting issuer in certain Canadian jurisdictions. However,the company is a "designated foreign issuer" as defined in Canadian NationalInstrument 71-102 and is subject to foreign regulatory requirements, includingthose of the AIM market of the London Stock Exchange. As such, the company isexempt from certain requirements otherwise imposed on reporting issuers inCanada. In particular, financial statements of the company may be preparedunder International Financial Reporting Standards or accounting principles thatmeet the non-Canadian disclosure requirements to which the company is subject. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
AMI.L