17th Mar 2006 07:01
Thor Mining PLC17 March 2006 THOR MINING PLC Interim report for the six months to 31 December 2005 Dated: 17 March 2006 Thor Mining PLC ("Thor" or the "Company") the mineral exploration anddevelopment company focussed on advancing tungsten and molybdenum projects inthe Northern Territory of Australia announces its interim results for the periodended 31 December 2005. Chairman's Statement Thor was established in 2005 as a mineral exploration and development companyfocused on advancing its tungsten and molybdenum projects in the NorthernTerritory of Australia. The admission to AIM was completed in June 2005 andsubsequently the Company was admitted to the Frankfurt Stock Exchange. Background Thor's wholly owned subsidiary, Sunsphere, has three groups of resource assetsin the Northern Territory of Australia comprising Molyhil, Thring Creek andHatches Creek. The principal project of the Company is the Molyhil Tungsten -MolybdenumProject. Operating Review During the last half year, exploration has been focused on the Molyhil depositwhere three shafts and cross cuts were completed to determine the true headgrade of the deposit and to provide metallurgical samples. As a result of thiswork, a new JORC resource was announced in January 2006 of 2.4 million tonnes at0.80% combined. This resource is detailed as follows UNCUT TONNES WO3 % MoS2 % COMBINED %Measured 370,000 0.52 0.32 0.85Indicated 1,750,000 0.52 0.26 0.77Inferred 250,000 0.7 0.2 0.9Total 2,380,000 0.54 0.26 0.80 Note: Totals may differ from sum of individual numbers due to rounding Work on the scoping study continues and this is expected to be completed in theMarch 2006 quarter. In addition to the work at Molyhil, low level airborne photography and magneticsurveys were flown at Hatches Creek. This program, which will be submitted tothe traditional owners for approval, is anticipated to result in an agreementbeing executed and thereafter the grant of title. At Thring Creek a detailed ground magnetic survey was undertaken and the firstdrilling will be undertaken in the first half of 2006 quarter. The agreementwith the traditional owners has been executed. Financial Review During the half year the Company expended almost £600,000 on exploration anddevelopment activities. In the next half year a further £200,000 is budgeted onthese activities. John W BarrExecutive Chairman Independent Review Report to Thor Mining PLC Introduction We have been instructed by the Company to review the financial information whichcomprises the Consolidated Income Statement, Consolidated Statement of TotalRecognised Gains and Losses, Consolidated Balance Sheet, Consolidated Cash FlowStatement and related notes. We have read the other information contained in theinterim report and considered whether it contains any apparent misstatements ormaterial inconsistencies with the financial information. This report, including the conclusion, has been prepared for and only for theCompany for the purpose of their interim report and for no other purpose. We donot, therefore, in producing this report, accept or assume responsibility forany other purpose or to any other person to whom this report is shown or intowhose hands it may come save where expressly agreed by our prior consent inwriting. Directors' responsibilities The interim report, including the financial information contained therein, isthe responsibility of, and has been approved by the Directors. Review work performed We conducted our review in accordance with guidance contained in Bulletin 1999/4issued by the Auditing Practices Board as if that Bulletin applied. A reviewconsists principally of making enquiries of the Directors 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 Auditing Standards and therefore provides a lowerlevel of assurance than an audit. Accordingly we do not express an auditopinion 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 31st December 2005. CHAPMAN DAVIS LLPChartered Accountants2 Chapel CourtLondon SE1 1HH Consolidated Income Statement (Unaudited)For the 6 months ended 31 December 2005 Notes £'000 £'000 Six months ending 31 Period ending 30 December 2005 June 2005 (Unaudited) (Audited) Administrative expenses (303) (99) OPERATING LOSS (303) (99) Bank interest received 20 - LOSS BEFORE TAXATION (283) (99) Taxation 2 - - LOSS ON ORDINARY ACTIVITIES AFTER TAXATION (283) (99) Loss per share : Basic 4 (0.16)p (0.15)p The financial year end of THOR MINING PLC is 30 June. The comparatives in theconsolidated Profit and Loss account are for the period 3 November 2004 to June30 2005. Consolidated Statement of Total Recognised Gains and Losses (Unaudited)For the 6 months ended 31 December 2005 Notes £'000 £'000 Six months ending 31 Period ending 30 December 2005 June 2005 (Unaudited) (Audited) Loss for the Period (283) (99)Unrealised surplus on foreign exchange 37 23Total recognised gains and losses related to the (246) (76)period Consolidated Balance Sheet (Unaudited)At 31 December 2005 Notes £'000 £'000 Six months ending Period ending 31 December 2005 30 June 2005 (Unaudited) (Audited) NON-CURRENT ASSETSProperty and Equipment 10 -Exploration evaluation & development expenditure 1,281 685TOTAL NON-CURRENT ASSETS 1,291 685 CURRENT ASSETSPrepayments 10 -Cash at bank and in hand 751 1,504Receivables 46 79TOTAL CURRENT ASSETS 807 1,583TOTAL ASSETS 2,098 2,268 CURRENT LIABLILITESCreditors: Amounts falling due within one year 83 7TOTAL CURRENT LIABLITIES 83 7NET ASSETS 2,015 2,261 CAPITAL AND RESERVESCalled up share capital 182 182Share premium 1,750 1,750Profit and loss account (382) (99)Other Reserves 465 428SHAREHOLDERS' FUNDS 2,015 2,261 Consolidated Cash Flow Statement (Unaudited)For the 6 months ended 31 December 2005 Notes £'000 £'000 Six months ending 31 Period ending 30 December 2005 June 2005 (Unaudited) (Audited) RECONCILIATION OF OPERATING LOSS TO NET CASH INFLOW FROMOPERATING ACTIVITIESOperating loss (303) (99)Decrease (Increase)/ in Debtors 23 (3)Increase/(Decrease) in Creditors 26 (11)Profit on currency exchange 37 23Increase/(Decrease) other operating activities 2CASH OUTFLOW FROM OPERATING ACTIVITIES (215) (90) Returns on investments and servicing of finance 20 - Capital Expenditure (558) (293)CASH OUTFLOW BEFORE FINANCING (753) (383) FinancingIssue of share capital - 2,071Expenses to acquire subsidiary shares - (184) - 1,887(DECREASE)/INCREASE IN CASH IN THE PERIOD (753) 1,504 RECONCILIATION OF NET CASHFLOW TO MOVEMENT IN NET FUNDS(Decrease)/Increase in cash in the period (753) 1,504Net funds at beginning of period 1,504 - Net funds at end of period 751 1,504 Notes to the Interim ReportFor the 6 months ending 31 December 2005 1. BASIS OF PREPARATION (a) Presentation of interim results This interim report was approved by the Directors on 16 March 2006. The interimresults have not been audited, but were the subject of an independent reviewcarried out by the Company's auditors, Chapman Davis LLP. Their reviewconfirmed that the figures were prepared using applicable accounting policiesand practices consistent with those adopted in the 2005 annual report. Thefinancial information contained in this interim report does not constitutestatutory accounts as defined by Section 240 of the Companies Act 1985. (b) Statement of Compliance The interim financial information has been prepared on the basis of therecognition and measurement requirements of adopted IFRS as at 30 June 2005 thatis effective at 30 June 2006. Based on these adopted IFRS, the directors haveapplied the accounting policies, set out below, which they expect to apply whenthe annual IFRS financial statements are prepared for the year ending 30 June2006. 2. ACCOUNTING POLICIES (a) Basis of preparation These financial statements have been prepared under the historical costconvention and in accordance with the applicable international accountingstandards. (b) Basis of consolidation The financial statements of controlled entities are included in the consolidatedfinancial statements from the date control commences until the date controlceases. (c) Goodwill Goodwill on consolidation is capitalised and shown within fixed assets.Positive goodwill is subject to annual impairment review with movements chargedin the profit and loss account. Negative goodwill is reassessed by theDirectors and attributed to the relevant assets to which it relates (d) Deferred taxation Full provision is made for deferred taxation resulting from timing differencesbetween the recognition of gains and losses in the accounts and theirrecognition for tax purposes. Deferred tax is calculated at the tax rates which are expected to apply in theperiods when the timing differences will reverse, and discounted to reflect thetime value of money using rates based on the post-tax yields to maturity thatcould be obtained at the balance sheet date on government bonds with similarmaturity dates. (e) Foreign currencies Transactions in foreign currencies are recorded at the rate ruling at the dateof the transaction. Monetary assets and liabilities denominated in foreigncurrencies are translated at the rate of exchange ruling at the balance sheetdate. All differences are taken to the profit and loss account. On consolidation of a foreign operation, assets and liabilities are translatedat the balance sheet rates, income and expenses are translated at rates rulingat the transaction date. Exchange differences on consolidation are taken to theforeign exchange reserve account. (f) Exploration and development expenditure Exploration, evaluation and development expenditure incurred as accumulated inrespect of each identifiable area of interest. These costs are only carriedforward to the extent that they are expected to be recouped through thesuccessful development of the area or where activities in the area have not yetreached a stage which permits reasonable assessment of the existence ofeconomically recoverable reserves. Accumulated costs in relation to an abandoned area are written off in fullagainst the profit in the year in which the decision to abandon the area ismade. A regular review is undertaken of each area of interest to determine theappropriateness of continuing to carry forward costs in relation to that area ofinterest. Restoration, rehabilitation and environmental costs necessitated by explorationand evaluation activities are expensed as incurred and treated as explorationand evaluation expenditure. (g) Share based payments For equity settled share based payments the transactions are measured at thefair value of the equity instruments granted at the date of grant. No furtherre-measurement is conducted for subsequent movements in the fair value. 3. TAXATION No taxation has been provided due to losses in the period. 4. DIVIDENDS The Directors do not recommend the payment of a dividend. 5. LOSS PER SHARE Six months ending Period ending 31 December 2005 30 June 2005 (Unaudited) (Audited)Basic Loss for the period Loss (£'000) (283) (99)Weighted Average Number of Shares 181,675,000 64,360,000 Loss Per Share - pence 0.16 0.15 The basic earnings per share has been calculated on a loss on ordinaryactivities after taxation of £283,000 (30 June 2005: £99,000 loss) and on181,675,000 (30 June 2005: 64,360,000) ordinary shares being the weightedaverage number of shares in issue and ranking for dividend during the period.No diluted loss per share is presented as the effect of exercise of outstandingoptions is to decrease the loss per share. 6. RECONCILIATION OF MOVEMENT IN SHAREHOLDERS' FUNDS Share Share Profit Other Total capital premium and loss Reserves account Account £'000 £'000 £'000 £'000 £'000 At 1 July 2005 182 1,750 (99) 428 2,261Profit/Loss for the period - - (283) 37 (246) At 31 December 2005 182 1,750 (382) 465 2,015 Enquiries: John W Barr +61 418 912 885 Thor Mining PLC Executive ChairmanJohn Simpson 020 7512 0191 ARM Corporate Finance Ltd Nominated AdviserAbigail Singleton 020 7618 8534 Conduit PR Public Relations This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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