28th Sep 2007 08:02
Minera IRL Limited28 September 2007 Minera IRL Limited ("Minera" or "the Company") Interim Results for the six month period ended 30 June 2007 Minera IRL Ltd (AIM: MIRL), the South American mining company, is pleased toannounce its interim results for the six months ended 30 June 2007. Highlights in the year to date • Corihuarmi mining to commence Q4 2007 with unhedged gold production on track to start in Q1 2008 • Expected near term signing of a surface rights agreement at Ollachea • Jaguelito pre-feasibility project completed - current resource level not economically viable. Possibility to continue exploration currently being examined • Successful fundraising of £11.4m in April 2007 • Cash balance of US$19.8m at 30 June 2007 • Commencement of the dual listing process on the Lima Ventures Exchange Commenting, Executive Chairman Courtney Chamberlain said: "I am pleased to reportthat unhedged gold production is expected to commence at Corihuarmi in the first quarter of 2008. Whilst it is disappointing that the currently defined resource base atJaguelito is not viable we are exploring the possibility of conducting further exploration at this site." "We are also encouraged by the progress that we have made with the local community at Ollachea and are confident of securing the necessary surface rights agreement in the near future. Our experienced and committed team are confident that thecombination of unhedged near term gold production coupled with the other opportunitieswithin the Group put our Company in a strong position moving forward." For more information contact: Minera IRL +61 408 888 803Courtney Chamberlain, Executive Chairman Arbuthnot Securities + 44 (0)20 7012 2000Paul VanstoneInna Vassina Bankside Consultants + 44 (0)20 7367 8888Simon RothschildLouise Mason Chairman's Statement I am pleased to present our Interim Report for the six months to 30 June 2007. Much progress was made in building the Company during this six month period.Minera IRL was listed on the AIM stock market on 12 April 2007. In the processof listing, £11.4 million was raised and at the end of June the Company was in astrong financial position with US$19.8 million in cash. During the period the Company has also initiated the process of listing itsshare capital on the Lima Ventures Exchange and trading is expected to commenceduring the fourth quarter of 2007. Other companies that have recently listed inLima are receiving good local market support. This initiative is expected toincrease liquidity and enlarge the shareholder base and demonstrate ourcommitment to the region. Projects Most of the funds raised in April are being deployed in the development of theCorihuarmi gold mine. This project is approximately 160km southeast of Lima,Peru. The engineering and procurement phases have been largely completed.Project management was awarded to BISA, a Lima based engineering andconstruction firm. Site mobilization commenced in May and a substantialconstruction workforce was quickly assembled. The project is on track for miningto begin by the end of 2007 with gold production to commence in the firstquarter of 2008. Civil earth works are approximately 40% complete andcommencement of plastic lining for pads and ponds will begin shortly. A considerable effort was made at the Jaguelito Project in San Juan Province,Argentina. This included diamond drilling of over 5,700 meters, resourceestimation, metallurgical test work and other studies which culminated in arecently completed Pre-feasibility Report. However, the resource estimate wasdowngraded and the ensuing financial modelling demonstrated that the project isnot viable with the currently defined resource base. As previously announced,Minera IRL is in discussions with Instituto Provincial de Exploraciones yExplotaciones Mineras ("IPEEM"), the government agency which owns the miningleases, as to the possibility of carrying out further exploration within theproject area. Discussions will investigate means that may still be open toincrease the resource base of the project through further exploration. Whateverthe outcome of those discussions the Company has decided to maintain the base inSan Juan for the purpose of assessing other opportunities throughout Argentina. The Company has progressed negotiations throughout the period with the communityassociated with the Ollachea Project acquired from Rio Tinto in 2006. InSeptember our exploration team was given access to the site to conductreconnaissance as part of a technical review. Based on the results of this weare preparing an exploration plan that will be agreed with the local communityas part of the anticipated surface rights agreement. It is expected that thisagreement will be signed during the fourth quarter of 2007. Once signed, theCompany will immediately begin the exploration programme. We continue to assess new opportunities throughout Peru, Argentina and,recently, Colombia. Our project generation team has evaluated fifteen newprojects since the end of June and they will continue a vigorous programme inall three countries. Corporate Governance The Company continues to follow strict environmental guidelines in all itsprojects and the Corihuarmi mine in particular is being constructed incompliance with the highest international standards. You will all have heard of the destruction and loss of life in the recentearthquake in southern Peru. I am glad to say that neither the members of theMinera IRL team nor their families were among the casualties, and none of ourpremises were affected. However, your Board of Directors decided that in view ofthe presence of the Company in Peru and the urgent humanitarian need, it wouldbe appropriate to make a contribution of US$20,000 to the relief effort. Membersof staff have also made personal contributions, both financial and material, tothe relief effort. Investment Climate The investment climate in our sector continues to be encouraging, and preciousmetal prices are showing renewed strength. As an unhedged producer thiscontinuing strength will have a marked beneficial effect on the financialresults of the Company when we commence production at Corihuarmi in the firstquarter of next year. I would like to acknowledge the hard work by all the Minera IRL staff. We arefortunate to have a high quality team dedicated to the growth and success of theCompany. I also thank our shareholders for their continuing support. The Companywill shortly be in production at the Corihuarmi mine and we look to the futurewith confidence. Courtney ChamberlainExecutive ChairmanMinera IRL Limited 27 September 2007 Minera IRL Limited Consolidated Income Statement 6 months 6 months Year ended ended ended 30 June 30 June 31 December 2007 2006 2006 (unaudited) (unaudited) (audited) US$'000 US$'000 US$'000 Revenue - - -Cost of sales - - -Gross profit - - - Other income - 109 171Administration expenses (4,062) (893) (2,768)Exploration costs written off (656) (291) (747)Operating loss (4,718) (1,075) (3,344) Financial income 267 6 29Financial expenses (88) (8) (85)Net financial income/expense 179 (2) (56) Loss before and after tax (4,539) (1,077) (3,400) Loss for the period (4,539) (1,077) (3,400) Loss per ordinary share (UScents)Basic and diluted (10.0) (4.8) (13.8) Minera IRL Limited Consolidated Balance Sheet As at As at As at 30 June 30 June 31 December 2007 2006 2006 (unaudited) (unaudited) (audited) US$'000 US$'000 US$'000AssetsTangible assets 9,328 85 5,648Intangible assets 3,426 4,842 1,436Trade and other receivables 1,767 260 1,059Total non-current assets 14,521 5,187 8,143 Other receivables and 590 694 298prepaymentsCash and cash equivalents 19,803 165 1,402Total current assets 20,393 859 1,700 Total assets 34,914 6,046 9,843 EquityShare capital 41,660 65 14,363Share premium - 11,808 -Other reserves 197 129 129Profit and loss account (13,073) (6,211) (8,534)Total equity 28,784 5,791 5,958 LiabilitiesInterest bearing loans 3,000 - 3,000Total non-current liabilities 3,000 - 3,000 Trade and other payables 3,130 255 885Total current liabilities 3,130 255 885 Total liabilities 6,130 255 3,885 Total equity and liabilities 34,914 6,046 9,843 Minera IRL Limited Consolidated Statement of Changes in Equity Foreign Share Profit currency Option and loss Share Share reserve reserve account capital premium Total US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 Balance 1 55 8,799 129 - (5,134) 3,849January 2006Issue of 10 3,009 - - - 3,019sharecapitalLoss for the - - - - (1,077) (1,077)period to 30June 2006Balance 30 65 11,808 129 - (6,211) 5,791June 2006 Balance 1 65 11,808 129 - (6,211) 5,791July 2006Issue of 9 2,481 - - - 2,490sharecapitalLoss for the - - - - (2,323) (2,323)period to 31December2006Transfer 14,289 (14,289) - - - -sharepremium tosharecapitalBalance 31 14,363 - 129 - (8,534) 5,958December2006 Balance 1 14,363 - 129 - (8,534) 5,958January 2007Issue of 28,787 - - - - 28,787sharecapitalCosts of (1,490) - - - - (1,490)raisingsharecapitalLoss for the - - - - (4,539) (4,539)period to 30June 2007Reserve for - - - 68 - 68Share OptionCosts Balance 30 41,660 - 129 68 (13,073) 28,784June 2007 Minera IRL Limited Consolidated Statement of Cash Flows 6 months 6 months Year ended ended Ended 30 June 30 June 31 December 2007 2006 2006 (unaudited) (unaudited) (audited) US$'000 US$'000 US$'000Cash flows from operating activitiesOperating loss (4,718) (1,075) (3,344)Depreciation 20 7 21Impairment of exploration assets - - 84Costs attributed to the issue of share 68 - -optionsLoss on disposals of assets - 36 36Increase in other receivables and (1,000) (112) (545)prepaymentsIncrease/(decrease) in trade and other 2,245 (620) 54payablesCash used in operations (3,385) (1,764) (3,694)Net interest received/(paid) 179 (2) (56)Net cash outflow from operating (3,206) (1,766) (3,750)activitiesCash flows from investing activitiesAcquisition of property, plant and (3,700) (37) (122)equipmentAcquisition of intangible assets (1,990) (1,058) (3,435)(exploration expenditure)Net cash outflow from investing (5,690) (1,095) (3,557)activitiesCash flows from financing activitiesNet proceeds from the issue of ordinary 27,297 - 5,509share capitalReceipt of loans - 2,825 3,000Net cash inflow from financing 27,297 2,825 8,509activities Net increase/(decrease) in cash and 18,401 (36) 1,202cash equivalentsCash and cash equivalents at beginning 1,402 200 200of the periodCurrency translation adjustments - 1 -Cash and cash equivalents at end of the 19,803 165 1,402period Notes to the Interim Report The financial information contained in this Interim Report does notconstitute statutory accounts as defined by the Companies (Jersey) Law1991. No statutory accounts for the period have been delivered to theJersey Registrar of Companies. The financial information contained in thisInterim Report has neither been audited nor reviewed by the auditors. The statutory accounts for the year ended 31 December 2006 have been filedwith the Jersey Registrar of Companies. The auditors' report on theseaccounts was unqualified. The consolidated financial information containedin this Interim Report has been presented and prepared in a formconsistent with the annual accounts and in accordance with accountingpolicies and standards applicable to those annual accounts. This Interim Report has been approved for issue by the Board of Directorson 27 September 2007 Loss per shareThe loss per share has been calculated using the losses attributable toordinary shareholders of US$4,539,000 (2006:1,077,000) and the weightedaverage number of ordinary shares in issue during the period to 30 June2007 of 45,516,661 (2006:22,318,400). The weighted average number ofshares has been calculated as if the 400:1 share split which took place on29 November 2006 had occurred at the start of the comparative periods. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
MIRL.L