21st Mar 2007 11:30
Davos Resources PLC21 March 2007 DAVOS RESOURCES PLC ("Davos" or the "Company") Interim results for the 6 month period ended 31 December 2006 Chairman's Statement The Company was admitted to AIM on 23 October 2006 with a strategy of developingthe exploration programme at the Pine Creek Tenement and making acquisitions inthe natural resources sector. The interim report covers the period from 1 July 2006 to 31 December 2006 andincludes details of the proposed acquisition of CNGC announced on 10 January2007. David SteinepreisChairman Contacts: David Steinepreis Davos Resources Plc 07913 402727 (U.K.)Olly Cairns/ Romil Patel Corporate Synergy Plc 020 7448 4400 Unaudited Interim Financial Information of Davos Resources plc The following interim financial information of Davos Resources plc is for theperiod from 1 July 2006 to 31 December 2006. CONSOLIDATED PROFIT AND LOSS ACCOUNTFOR THE PERIOD ENDED 31 DECEMBER 2006 Consolidated Company (Unaudited) (Unaudited) period ended period ended 31 December 2006 31 December 2006 £ £ Exploration expenditure written off (26,475) -Administrative expenses (88,979) (73,197) Loss on ordinary activities before interest (115,154) (73,197) Interest receivable 2,720 2,636 Loss on ordinary activities before taxation (112,434) (70,561) Taxation - - Loss on ordinary activities after taxation (112,434) (70,561) CONSOLIDATED BALANCE SHEETAS AT 31 DECEMBER 2006 Consolidated Company (Unaudited) (Unaudited) 31 December 2006 31 December 2006 Note £ £Fixed assetsIntangible assets 2 30,000 - Current assetsDebtors 3 2,151 52,660Capitalised costs - acquisition of CentralNorseman Gold Corporation 48,591 48,591Cash at bank and in hand 421,581 411,475 472,323 512,726 Creditors: amounts falling due within one year 4 89,700 56,833 Net current assets 382,623 455,893 Total assets less current liabilities 412,623 455,893 Net assets 412,623 455,893 Capital and reservesCalled up share capital 5 (b) 137,500 137,500Share premium account 5 (c) 388,890 388,890Profit and loss account (113,767) (70,497) Shareholders' funds 412,623 455,893 CONSOLIDATED CASH FLOW STATEMENTFOR THE PERIOD ENDED 31 DECEMBER 2006 Consolidated Company (Unaudited) (Unaudited) period ended period ended 31 December 2006 31 December 2006 £ £ Net cash outflow from operating activities (78,344) (64,891) Returns on investments and servicing of financeInterest income 2,720 2,636 (75,624) (62,255) AcquisitionsNet funds invested in exploration (57,572) - Net cash outflow from acquisitions (57,572) - Net cash outflow before financing (133,196) (62,255) FinancingLoan to subsidiary - (52,660)Loan from Ascent Capital Holdings Pty Ltd 28,387 -Proceeds from issue of shares 715,000 715,000Costs of the issue of shares (188,610) (188,610) Net cash inflow from financing 554,777 473,730 Increase in cash 421,581 411,475 NOTES TO THE FINANCIAL INFORMATION 1. Accounting policies Accounting convention The financial information has been prepared under the historical costconvention. Compliance with accounting standards The financial information has been prepared in accordance with the applicableUnited Kingdom Accounting Standards (United Kingdom Generally AcceptedAccounting Practice), which have been applied consistently. Mineral rights and reserves The company follows the "full cost" method of accounting for the costsassociated with exploration, appraisal, development and production of mineralreserves. Evaluated mineral assets are held in separately designatedgeographical cost pools. The costs of acquisition of property (including rightsand concessions), geological and geophysical costs, costs of field productionfacilities, and plant and equipment are classified as tangible assets if theyrelate to proved and probable mineral properties. All costs associated with property acquisition, exploration and development arecapitalised regardless of whether they result in commercial discoveries or not.Producing mineral assets are depleted by pool on a unit of production method inthe proportion of actual production for the period to the total remainingcommercial reserves. Reserves are those estimated at the end of the period plusproduction during the period. For depletion purposes only, the cost baseincludes costs of capital assets and anticipated future development expenditure. Pre-licence acquisition, exploration and appraisal costs of individual licenceinterests are held outside cost pools until the existence or otherwise ofcommercial reserves is established. These costs remain undepreciated asintangible exploration and development costs until this determination is made.When a positive determination is made the cost is transferred to a cost pool anddepreciated. If a licence interest is determined to be non-commercial the costis written off. Foreign currencies Transactions in foreign currencies are recorded using the rate of exchangeruling at the date of the transaction. Monetary assets and liabilitiesdenominated in foreign currencies are translated using the rate of exchangeruling at the balance sheet date and the gains or losses on translation areincluded in the profit and loss account. Principles of consolidation The consolidated financial statements are prepared by combining the financialstatements of all the entities that comprise the consolidated entity, being thecompany (the parent entity) and its subsidiaries. A list of subsidiaries appearsin Note 7. Consistent accounting policies are employed in the preparation andpresentation of the consolidated financial statements. On acquisition, the assets, liabilities and contingent liabilities of asubsidiary are measured at their fair values at the date of acquisition. Anyexcess of the cost of acquisition over the fair values of the identifiable netassets acquired is recognised as goodwill. If, after reassessment, the fairvalues of the identifiable net assets acquired exceeds the cost of acquisition,the deficiency is credited to profit and loss in the period of acquisition. The interest of minority shareholders is stated at the minority's proportion ofthe fair values of the assets and liabilities recognised. The consolidated financial statements include the information and results ofeach subsidiary from the date on which the company obtains control and untilsuch time as the company ceases to control such entity. In preparing the consolidated financial statements, all intercompany balancesand transactions, and unrealised profits arising within the consolidated entityare eliminated in full. Consolidated Company (Unaudited) (Unaudited) 31 December 2006 31 December 2006 £ £2. Intangible assets Pine Creek Tenement - acquisition, exploration and appraisal costs 30,000 - 3. Debtors Loan to subsidiary - Davos Resources Pty Ltd - 52,660Goods and services tax receivable 2,151 - 2,151 52,660 4. Creditors Trade payables 61,313 56,833Loan by Ascent Capital Holdings Pty Ltd 28,387 - 89,700 56,833 Ascent Capital Holdings Pty Ltd advanced funds to the group for working capitalpurposes for the initial Admission. The balance outstanding, $70,968 (£28,387)is due and payable on demand. Consolidated Company (Unaudited) (Unaudited) 31 December 2006 31 December 2006 £ £ 5. Share capital a) Authorised 4,000,000,000 Ordinary shares of 0.25p each 10,000,000 10,000,000 b) Issued and fully paid Ordinary shares of 0.25p each 137,500 137,500 Issued and fully Share premium paid capital reservec) Movement in issued and fully paid capitaland share premium reserve Number £ £ Issued on incorporation 2 - -Issued on 4 July 2006 18 - - 20 - -Subdivision of capital on 4 July 2006 (12) - - On issue after subdivision of capital 8 - -Issued on 14 August 2006 22,000,000 55,000 -Issued on 28 September 2006 22,000,000 55,000 55,000Issued on 5 October 2006 10,999,992 27,500 522,500Costs of the issue capital - - (188,610) 55,000,000 137,500 388,890 d) Options Option Agreements dated 16 October 2006 between the Company and each ofCorporate Synergy and Ascent Capital pursuant to which the Company has grantedCorporate Synergy and Ascent Capital Options to subscribe for 1,650,000 OrdinaryShares, exercisable at any time from Admission and from time to time until thethird anniversary of Admission. The exercise price is 6.25 pence. 6. Employees Number of employees There were no employees during the period apart from the directors. 7. Subsidiary undertakings Name of company Country Holding Proportion Nature of business held Davos Resources Pty Ltd Australia Ordinary 100% Mineral exploration Shares Davos Gold Pty Ltd Australia Ordinary 100% Mineral exploration Shares On 28 August 2006, Davos acquired the entire issued capital of Davos ResourcesPty Ltd. On 22 December 2006, Davos acquired the entire issued capital of Davos Gold PtyLtd. 8. Subsequent events On 8 January 2007, the number of Ordinary Shares issued and fully paid wasincreased from 55,000,000 Ordinary Shares of £0.0025 each to 116,440,000Ordinary Shares of £0.0025 each by a placement of 61,440,000 Ordinary Shares at£0.05 each to raise a total of £3,072,000 before issue costs. On 22 February 2007, the number of Ordinary Shares issued and fully paid wasincreased from 116,440,000 Ordinary Shares of £0.0025 each to 145,220,000Ordinary Shares of £0.0025 each by a placement of 28,780,000 Ordinary Shares at£0.05 each to raise a total of £1,439,000 before issue costs. The authorised and issued share capital of the Company at the date of thisannouncement is as follows: Authorised Issued and fully paid Amount Number Ordinary Shares of Amount Number £10,000,000 4,000,000,000 £0.0025 each £363,050 145,220,000 On 10 January 2007, Davos Resources Plc announced that it and Davos Gold Pty Ltdhad entered into a Share Sale Agreement ("SSA") with Croesus Mining NL (an ASXlisted company in administration) ("Croesus") for the purchase of the Croesussubsidiary company, Central Norseman Gold Corporation Limited (inadministration) ("CNGC"). CNGC owns and operates Australia's longest operating gold mine in Norseman,Western Australia. Croesus and CNGC appointed administrators on 23 June 2006following operational problems at the mine and hedging debts, however,operations at the Norseman mine have continued during the course of theAdministration and the Administration will cease on or before completion of theSSA. The purchase consideration for CNGC will be A$66 million plus the assumption ofcertain trade liabilities and bonds. This consideration will be payable in theform of cash of A$44 million, A$2 million of ordinary shares in the Company andA$20 million of convertible notes. The SSA is conditional upon the creditors of CNGC agreeing to vary the CNGC Deedof Company Arrangement to facilitate the sale; Foreign Investment Review Boardof Australia ("FIRB") approval; and, as the acquisition will constitute areverse transaction under the AIM Rules, the approval of Davos shareholders. Davos has paid an A$8 million cash deposit as part of the SSA. This deposit hasbecome non-refundable as a result of CNGC creditor approval and FIRB approval. 9. Nature of the financial information The financial information presented above does not constitute statutory accountsfor the period under review. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Norseman Gold