15th Sep 2005 12:51
Minco PLC15 September 2005 This announcement replaces the Interim Results which was released today at7a.m. under RNS No: 2881R. The Interim Results was stated in Sterling(£) rather than Euros(•). The full amended text appears below. All other details remain unchanged. Minco Plc Interim Report For the six months from 1 January 2005 to 30 June 2005 Minco Plc, the international precious metals development and exploration companyis pleased to announce its interim, unaudited, results for the six months ended30 June 2005 Highlights • An increase of 22% silver equivalent ounces in the Laguna Project will be reflected in Bankable Feasibility Study • Bankable Feasibility Study on Laguna project imminent, early production decision planned. • Drilling at Minera Sisa underway following completed mapping, geochemical, geophysical and sampling programmes. • Further positive drilling results from Pallas Green zinc property • Ongoing evaluation of precious metal projects with near term production potential in Mexico against demanding acquisition criteria Minco Strategy The past six months has seen significant progress towards our aim of developingworld class resources and generating cash flow from production. The Bankable Feasibility Study on the Laguna silver tailings project is due tobe completed in October when an early construction decision will be made. Workon the Minera Sisa concessions in Mexico continues and results from the PallasGreen drilling programme in Ireland have been very promising with combined zincand lead grades in the region of 20% being obtained in one hole. We are also reviewing other advanced projects for possible acquisition that fitthe low cost, early production objective we have established and we will bereporting on these projects when appropriate Operating Activities Laguna - MexicoThe Bankable Study commenced in the period under review and is due to becompleted in October by Micon International of Toronto, who also completed theinitial feasibility study in October 2004. The Bankable Study will incorporate the results of a further 150 drill holes,completed since the feasibility study, which Micon International have alreadycalculated will increase by 18% the resource used in the Feasibility Study. Thisincrease, linked with increased silver equivalent head grade and improvedmetallurgical recovery of the metals led management to increase the processingplant design throughput capacity to 1.25 million tonnes a year. The bankablestudy will not include in its calculation any additional tailings within theimmediate area of the Laguna which Kilborn Engineering estimated in the mid1990's might double that contained in the lake. Discussions with project finance banks have been positive and on completion ofthe Bankable Study project finance will be secured on the best possible termswith construction initiation thereafter. Minera Sisa - MexicoEarly in 2005 Minco acquired a 50% interest in Minera Sisa, and it's Santa Cruzsilver-gold project, located in NW Durango State, in the Sierra Madre EpithermalSilver-Gold Belt of west-central Mexico. Bonanza silver and gold grades togetherwith zinc, copper and lead values occur in the mine workings located on theproperty at Zambranena, Santa Cruz, La Fragua and Orozco. The current exploration program under Minco's direction is based on a three-foldapproach to search for : (1) bonanza grade silver-gold epithermal deposits; (2)bulk tonnage open pit-style silver-gold deposits; and (3) extensions to existinghigh grade, narrow vein-type silver-gold deposits. The ongoing program comprises geological mapping and evaluation of historicdata, geochemical soil sampling, trenching, underground sampling, geophysicalsurveys and a preliminary 3,000 metre diamond drill program. Drill assay resultsare pending but preliminary data suggest that the emerging targets have anepithermal silver-gold affinity based on mineralogical and alteration featuresand the suite of elements associated with the silver, gold and base metalmineralisation. The exploration programme has identified a number of new prospect areas on theSanta Cruz property which indicate continual anomalies over 5 kilometres inlength. A rehabilitation programme for the 80 tonne per day flotation plant onsite has been completed, however we are currently focussed on the explorationpotential of the project and will be evaluating historic and new data prior toimplementing a second phase of diamond drilling. Pallas Green - IrelandIn Ireland, Minco and our partner Falconbridge continue with a planned 6,000metre diamond drilling program. Preliminary assay data from one of the holescompleted at Caherconlish indicated a new mineralised zone with an average gradeof 14.97% zinc and 4.5% lead over a width of 5.3 metres from 357.15 - 362.45metres depth. Three additional drill rigs have been brought in to completestep-out holes around the Caherconlish discovery area and at Castlegarde, about10km to the east, were previous drilling outlined two high grade zinc massivesulphide lenses. The drill results, coupled with a 50% zinc price rise over the last 12 months toits current level of $0.62 per pound confirm Minco's commitment to it's basemetal licence holdings. As one of the largest zinc licence block holders inIreland, we are currently evaluating joint venture proposals on our otherblocks. Other ProjectsWe are currently reviewing several near term production and advanced explorationprojects in Mexico and we will publish the results of due diligence studies andnegotiations at the appropriate time. OutlookWe are confident that the results of the Laguna Bankable Study will be positiveand indications are that project finance will be available subject to the studyconfirming the economic returns shown in the initial study. We expect to make anearly decision on construction with production thereafter. Preliminary exploration at Minera Sisa has progressed well and we expect torelease an exploration update in the near future. The ongoing Pallas Greendrilling programme has already proved that this is an exciting project which isfurther enhanced by zinc price rise in the past twelve months. Over the next 12 months we hope to be near to production at Laguna. During thistime the ongoing work programmes on Pallas Green and Minera Sisa will continue. In addition, the acquisitions currently under review could enhance the value ofyour Company significantly. Our vision is to be in the top 15 silver producingcompanies in the world through dynamic growth within 5 years. Roger TurnerChairman14 September 2005 Financial Information(unaudited) Group Profit and Loss 6 Months 6 Months ended ended 30 June 2005 31 Oct, 2004 •'000 •'000 General and administration expenses 454 235Foreign exchange gain/(loss) 320 (41) OPERATING LOSS - All Continuing activities (134) (276) Interest income 86 29 (LOSS) BEFORE TAXATION (48) (247) Taxation - - (LOSS) AFTER TAXATION (48) (247) ==== ====(Loss) per Share (0.01c) (0.26c) Group Recognised Gains and Losses 6 Months 6 Months ended ended 30 June 2005 31 Oct, 2004 •'000 •'000Loss for the period (48) (247)Exchange loss on foreign currency netinvestments (46) 0 Total recognised losses for the period (94) (247) Group Balance Sheet As at As At 30 June 2005 31 Oct 2004 •'000 •'000FIXED ASSETSIntangible assets 9,864 6,586 CURRENT ASSETSBank 3,779 1,016Debtors 58 13 ____ ____ 3,837 1,029CREDITORSAmounts falling due within one year (825) (485) ____ ____NET CURRENT ASSETS/(LIABILITIES) 3,012 544 _____ _____NET ASSETS 12,876 7,130 CAPITAL AND RESERVESCalled-up share capital 4,106 3,562Share premium account 14,133 8,351Profit and loss account - (deficit (5,408) (4,828)Capital conversion reserve fund 45 45 ______ ______SHAREHOLDERS' FUNDS 12,876 7,130 ______ ______ EQUITY 10,465 4,717NON-EQUITY 2,413 2,413 ______ ______ 12,878 7,130 Group Cash Flow Statement 6 Months 6 Months ended ended 30 June 2005 31 Oct, 2004 •'000 •'000 Net Cash inflow/(outflow) from operatingactivities 89 (176) Returns on investments and servicing offinanceInterest Received 86 29 Capital expenditure and financial investmentPayment in respect of intangible assets (1644) (785) Net Cash Outflow from capital investment andfinancial investment (1558) (756) Acquisitions and disposalsPurchase of subsidiaries (1692) -Net Cash Outflow from acquisitions anddisposals (1,692) - Net Cash outflow before use of liquidresources and financing (3,161) (932) FinancingShare capital issued for cash 296 -Net Cash Flow from financing 296 -(Decrease) in cash (2,865) (932) Notes: 1 No dividend is proposed in respect of the period. 2 The calculations of loss per share have been based on the retained loss after taxation for the period and on a weighted average of 136,129,847 ordinary shares (2004 - 94,975,287 ordinary shares) in issue during the period. 3 The unaudited results have been prepared on a going concern basis and on the basis of the accounting policies adopted in the audited accounts for the year ended 31 December 2004 4 The interim report is unaudited and does not constitute Statutory Accounts as defined in S.148 of the Companies Act 1963. A copy of the Group's 2005 Statutory Accounts has been filed with the Irish authorities. The auditors' opinion on these Statutory Accounts was unqualified. 5 The Interim Report for the six months to 30 June 2005 was approved by the Directors on 12 September 2005. 6 The comparative figures are for and as at 31 October 2004 before the companychanged its year end to December from April. 7. Purchase of subsidiaries relates to the acquisition of 50% interest in theMexican Company Minera Sisa SA de CV for US$ 2.4 million in February 2005. Copies of this announcement will be sent to shareholders and will be available for inspection at the Company's registered office at 162 Clontarf Road, Dublin 3, Ireland For further informationMatthew Dorman, CEO. Tel: +44 20 7397 8151 [email protected] Roger Turner, Chairman. Tel +44 (0) 1273 495500 [email protected] Richard Thornton, Director Tel. +44 (0) 20 7397 8152 [email protected] Laurence Read/, Conduit PR Tel +44 (0) 207 618 8534/Amanda Harris +44 (0) 7900 322022 MINCO is a precious metals development and exploration company listed on the AIMmarket in London. Ticker symbol (MIO), http://www.minco.ie/ This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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