29th Nov 2005 07:00
Goldstone Resources Ltd29 November 2005 GOLDSTONE RESOURCES LIMITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 AUGUST 2005 Chief Executive Officer's Report I am pleased to provide a review of GoldStone's activities during the 6 monthsended 31 August 2005. The gold reconnaissance drilling programme was completed in June 2005. A totalof 12,285 metres of core was recovered from 56 drill sites. All assay resultshave been received and indicate that fifty four gold-bearing palaeoplacer layershave been intersected. Assay values obtained range from 0.10 to 3.78 g/tonneover an average sample thickness of 27 centimetres. The six most prospective palaeoplacers, ranked according to geologicalattributes and gold assay results, each extend over 100 km2 and are at presentbeing explored further by means of outcrop sampling and soil geochemistry. Thisapproach is successfully defining targets where the best gold grades can betested. Further stratigraphic and sedimentological analysis of the data basewill be integrated with these results and by mid-January sites will be selectedfor trenching and detailed drilling. A separate and additional Bauxite Reconnaissance Permit was obtained from theGuyana Geological and Mines Commission during August 2005. Pursuant thereto, anoption agreement pertaining to the Company's bauxite interests in Guyana wasconcluded with BHP Billiton during the same month. Work on the bauxite depositsin the Kopinang basin, which is being funded by BHP Billiton, has commenced withtwo exploration teams currently in progress in the field. In order to provide sufficient working capital to maintain the various mineralrights and to carry out the next phase of exploration on the gold project, theCompany carried out a placing during October 2005, which successfully raised£2,042,500. Under the placing, 68,083,330 ordinary shares of 1p each wereissued at a price of 3p per share. The successful placing will afford theCompany the opportunity to take the gold project to the next stage and may alsoenable a strategic alliance with a major gold company, aimed at investigatingother potential gold-bearing palaeoplacer deposits located elsewhere in theworld. Nico van der HovenChief Executive Officer28 November 2005 PROFIT AND LOSS ACCOUNTS Notes 6 months ended 12 months ended 6 months ended 31 August 2005 28 February 2005 31 August 2004 US$ US$ US$ Turnover - - -Exploration expenses (2,204,449) (4,336,090) (1,770,789) Gross loss (2,204,449) (4,336,090) (1,770,789) Other operating expenses (738,931) (2,158,287) (1,507,635)Interest receivable 36,584 166,912 83,832 OPERATING LOSS FOR THE (2,906,795) (6,327,465) (3,194,592)PERIOD Balance brought forward - (9,259,562) (2,932,097) (2,932,097)(deficit) Balance brought forward - (12,166,357) (9,259,562) (6,126,689)(deficit) Loss per ordinary share Basic (cents per share) 1 (4.7) (10.1) (5.1) BALANCE SHEETS 6 months ended 12 months ended 6 months endedFIXED ASSETS 31 August 2005 28 February 2005 31 August 2004 Tangible assets 451,499 461,468 254,329 CURRENT ASSETS Debtors and prepayments - 2,529 -Cash at bank 615,580 3,866,591 7,335,766 615,580 3,869,120 7,335,766 CREDITORS: amounts fallingdue within one year Amount due to parent - (40,499) (41,537)companyCreditors and accruals (168,791) (485,005) (610,601) (168,791) (525,504) (652,138) Net current assets 446,789 3,343,616 6,683,628 TOTAL ASSETS 898,288 3,805,084 6,937,957 CAPITAL AND RESERVES Share capital 1,122,982 1,122,982 1,122,982Share premium 11,386,554 11,386,554 11,386,554Capital contribution 555,110 555,110 555,110reserveProfit and loss - (12,166,358) (9,259,562) (6,126,689)(deficit) Equity Shareholders' Funds 898,288 3,805,084 6,937,957 CASH FLOW STATEMENTS 6 months ended 12 months ended 6 months ended 31 August 2005 28 February 2005 31 August 2004 Reconciliation of operatingloss to net cash inflow fromoperating activities Operating loss (2,906,796) (6,327,465) (3,194,592) Adjusted for:Depreciation 9,969 237,614 22,359Finance raising costs - 827,820 827,820Interest received (36,585) (166,912) (83,832)Decrease in debtors 2,529 316,409 318,938Decrease in creditors (356,713) 249,506 376,140 Net cash outflow from (3,287,595) (4,863,028) (1,733,167)operating activities Net cash outflow from (3,287,595) (4,863,028) (1,733,167)operating activities Returns on investment and 36,585 166,912 83,832servicing of finance Capital expenditure - (690,656) (268,262) Financing - 9,252,180 9,252,180 Increase in cash (3,251,011) 3,865,408 7,334,583 Reconciliation of net cashflow to movement in net debt Decrease in cash in the period (3,251,011) 3,865,408 7,334,583Net funds at 1 March 2005 3,866,591 1,183 1,183 Net funds at 31 August 2005 615,580 3,866,591 7,335,766 NOTES 1. Loss per share Basic loss per share is calculated by dividing the losses attributable to ordinaryshareholders by the weighted average number of ordinary shares in issue. Dilutedearnings per share is calculated using the weighted average number of ordinary sharesin issue as adjusted to assume conversion of all dilutive potential ordinary shares. Earnings Per Share ('EPS') requires presentation of diluted EPS when a company couldbe called upon to issue shares that would decrease net profit or increase net loss pershare. The Company has one class of dilutive potential ordinary shares being thewarrants issued at the time of placing and admission to AIM. For a loss makingcompany with outstanding warrants, net loss per share would only be increased by theexercise of warrants. No warrants have been exercised during the period; noadjustment was therefore made to dilute EPS for outstanding warrants. 6 months ended 12 months ended 6 months ended 31 August 2005 28 February 2005 31 August 2004Loss per share Loss attributable to (2,906,796) (6,327,465) (3,194,592)shareholders No. No. No.Weighted average 62,400,000 62,400,000 62,400,000number of ordinaryshares Basic loss per share (4.7) (10.1) (5.1)(cents) 2. Basis of preparation The financial information in this Interim Report has been prepared in United StatesDollars under the historical cost convention and in accordance with accountingstandards applicable in the United Kingdom. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Goldstone Resources