29th Aug 2006 12:07
Alba Mineral Resources PLC29 August 2006 Alba Mineral Resources plc ("Alba" or "the Company") Interim results for the six months ended 31 May 2006 The Board of Alba Mineral Resources plc presents the Company's interim resultsfor the six months ended 31 May 2006. Highlights • Entered into exploration option and joint venture agreement with Inco Europe Limited in respect of the Company's Arthrath nickel-copper-PGE project in Scotland. • Positive initial exploration results from rock sampling programme confirm the Bohaun, Ireland licence area as a prospective gold target with high grade potential • Joint Venture arrangement signed with Boliden Tara Mines Limited to explore for gold at the Company's Lough Gowna licence block in Ireland Lance O'Neill, Chairman, commented: "The Company's principal objective in theimmediate future is to further advance our nickel-copper-PGE prospect inScotland in conjunction with Inco Europe Ltd. We are aware that potentialmineral opportunities exist elsewhere and we will continue to evaluate suchprojects. The Company has recently completed a further fund raising to financecontinued exploration of the Company's existing gold and base-metal projects andallow it to investigate, acquire and advance exploration properties identifiedelsewhere." ENDS For further information contact: Alba Mineral Resources plc Lance O'Neill, Chairman Tel: +44 (0)20 7499 8334 Wilson Robb, Acting Managing Director Tel: +353 (0)46 905 9959 Parkgreen Communications Justine Howarth / Victoria Thomas Tel: +44 (0)20 7493 3713 City Financial Associates Liam Murray Tel: +44 (0)20 7090 7800 CHAIRMAN'S STATEMENT Introduction The six month period under review has seen significant developments for theCompany. These include: the joint venture arrangement with Inco Europe Limited,a wholly owned subsidiary of Inco Limited, one of the world's largest nickelproducers, in respect of the Company's Arthrath nickel-copper-PGE project inScotland and the joint venture agreement with Boliden Tara Mines Limited (Tara)to explore for gold at the Company's Lough Gowna licence block in Ireland, whereAlba and Tara each hold a 50% interest. Results for the Period The group made a loss for the period, after taxation, of £165,771 afterreceiving interest of £8,843 and having paid administrative expenses of£177,641. The basic and diluted loss per share was 0.3 pence. The group had cashbalances of £350,186 at the period end. Review of Activities The Company is developing a diversified exploration portfolio focused on theAppalachian-Caledonide trend, a zone extending from the eastern seaboard ofNorth America to Scandinavia including Scotland and Ireland. As previouslyannounced our principal objective in the immediate future is to further advanceour nickel-copper-PGE prospect in Scotland in conjunction with our partners IncoEurope Ltd. However, we are also aware that potential mineral opportunitiesexist elsewhere and we will continue to evaluate such projects, adding them toour portfolio where appropriate. The funds that have been raised through theplacing referred to below will provide working capital for the Company tofinance the continued exploration of the Company's existing gold, nickel andbase-metal projects and allow us to investigate, acquire and advance explorationproperties as identified elsewhere. Post-Period Event On 22 August 2006 the Company announced that it had successfully placed6,307,500 new ordinary shares in the Company with investors at a price of 8p pershare to raise approximately £505,000 before expenses. The monies raised willprovide additional working capital for the Company and enable it to continuefunding current and new exploration projects. Management Our search for a suitable candidate to assume the responsibilities of GroupManaging Director to oversee the continuing expansion of the Company'sexploration portfolio continues. The Company is hoping to announce a permanentappointment in the near future. In the interim, Exploration Director WilsonRobb has been named acting Managing Director. Outlook The Company will continue to work closely with its joint venture partners on theArthrath and Lough Gowna nickel and gold projects, respectively, whilstcontinuing to evaluate other opportunities elsewhere. 2006 has been an excitingyear for the Company so far and I look forward to reporting further developmentsin due course. Lance O'Neill29 August 2006Chairman CONSOLIDATED PROFIT AND LOSS ACCOUNT Unaudited Unaudited Audited 6 mths ended Period ended Period ended 31 May 2006 31 May 2005 30 Nov 2005 £ £ £Turnover - - -Cost of sales - - - --------------- --------------- ---------------Gross profit - - - Administrative expenses -177,641 -69,297 -213,445 --------------- --------------- ---------------Operating loss -177,641 -69,297 -213,445 Interest receivable and investment income 8,843 6,047 20,269 --------------- --------------- ---------------Loss on ordinary activities before taxation -168,798 -63,250 -193,176 Tax on ordinary activities (note 2) 0 0 0 --------------- --------------- ---------------Loss on ordinary activities after taxation -168,798 -63,250 -193,176 Minority interest 3,027 - - --------------- --------------- ---------------Loss for the period -165,771 -63,250 -193,176 ========= ========= =========Loss per ordinary 1p share (note 3)- basic 0.3 pence 0.3 pence 0.5 pence- diluted 0.3 pence 0.3 pence 0.5 pence CONSOLIDATED BALANCE SHEET Unaudited Unaudited Audited 31 May 2006 31 May 2005 30 Nov 2005 £ £ £ Fixed assetsIntangible assets 480,383 86,469 294,263Tangible fixed assets 5,476 - 630Goodwill 141,373 178,254 159,814 --------------- --------------- --------------- 627,232 264,723 454,707 --------------- --------------- ---------------Current assetsDebtors 105,679 50,690 63,076Cash at bank and in hand 350,186 775,807 653,764 --------------- --------------- --------------- 455,865 826,497 716,840 Creditors: amounts falling due within one year -217,567 -77,180 -187,219 --------------- --------------- ---------------Net current assets 238,298 749,317 529,621 --------------- --------------- --------------- --------------- --------------- ---------------Total assets less current liabilities 865,530 1,014,040 984,328 ========= ========= =========Capital and reservesCalled up share capital 603,126 590,626 603,126Share premium account 374,887 287,387 374,887Merger reserve 200,000 200,000 200,000Profit and loss account -358,947 -63,250 -193,176Foreign currency translation reserve -509 -723 -509 --------------- --------------- ---------------Equity shareholders funds 818,557 1,014,040 984,328Minority interest 46,973 - - --------------- --------------- --------------- 865,530 1,014,040 984,328 ========= ========= ========= CONSOLIDATED CASH FLOW STATEMENT Unaudited Unaudited Audited 6 mths ended Period ended Period ended 31 May 2006 31 May 2005 30 Nov 2005 £ £ £Net cash outflow from operating activities -170,724 -36,762 -54,893 Returns on investmentsInterest received 8,843 6,047 20,269 Capital expenditurePurchase of intangible assets -186,120 -17,939 -235,365Purchase of tangible assets -5,577 - -708 AcquisitionsNet cash balances acquired with subsidiary - -3,552 -3,552 --------------- --------------- ---------------Net cash outflow before financing -353,578 -52,206 -274,249 --------------- --------------- ---------------FinancingIssue of shares net of costs - 828,013 928,013Issue of shares of subsidiary undertaking to minority 50,000 - -interests --------------- --------------- ---------------(Decrease)/increase in cash in the period -303,578 775,807 653,764 ========= ========= ========= Reconciliation of operating loss to net cash outflow from operatingactivitiesOperating loss -177,641 -69,297 -213,445Depreciation and amortisation 19,172 6,147 24,665Foreign currency translation adjustments - -102 -237Intangible assets write off - - 9,981Increase in trade debtors -42,603 -50,690 -63,076Increase in trade creditors 30,348 77,180 187,219 --------------- --------------- ---------------Net cash outflow from operating activities -170,724 -36,762 -54,893 ========= ========= ========= NOTES 1. Basis of preparation The interim report for the six month period ended 31 May 2006 is unaudited anddoes not constitute statutory accounts within the meaning of section 240 of theCompanies Act 1985. It has been prepared under the historical cost conventionand on a basis consistent with the accounting policies for the period ended 30November 2005. The financial information relating to the period ended 30 November 2005 has beenextracted from the statutory accounts for that period, a copy of which has beendelivered to the Registrar of Companies. The auditors report on those financialstatements was unqualified and did not contain a statement under section 237 (2)of the Companies Act 1985. The Group consolidates the financial statements of the Company and itssubsidiary undertakings. 2. Taxation No charge for corporation tax for the period has been made due to the expectedtax losses available. 3. Loss per share Basic loss per share is calculated by dividing the loss attributable to ordinaryshareholders of £165,771 (May 2005: £63,250; November 2005: £193,176) by theweighted average number of shares of 60,312,600 (May 2005: 23,549,598; November2005: 40,700,500) in issue during the period. The diluted loss per sharecalculation is identical to that used for basic loss per share as the exerciseof warrants would have the effect of reducing the loss per ordinary share andtherefore is not dilutive under the terms of Financial Reporting Standard 22 "Earnings Per Shares". This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Alba Mineral Resources