13th Dec 2007 10:29
Templar Minerals Limited13 December 2007 13 December 2007 Templar Minerals Limited ("Templar" or the "Company") Interim Results CHAIRMAN'S STATEMENT I have pleasure in presenting the first interim financial statements for TemplarMinerals Ltd ("Templar" or the "Company") since its admission to the AlternativeInvestment Market ("AIM") of the London Stock Exchange on 11 May 2007. Theperiod under review runs from 2 April 2007 and end on 30 September 2007. During this period the Company acquired a 90 per cent interest in the Adjariagold and base metals project in the Republic of Georgia for US$2.0 million incash and by the issue of 25 million shares in Templar. Historic non-JORCcompliant Soviet resource estimates indicated a total mineral resource for theAdjaria Project of: Copper 74,800 tonnes, Lead 15,000 tonnes, Zinc 11,000tonnes, Gold 0.652 tonnes and Silver 15.1 tonnes. An exploration programme isunderway and drilling is due to begin in late January 2008. In October 2007, subsequent to the financial period, the Company acquired 265million shares in River Diamonds Plc (London AIM: "RVD"). In October 2007 RiverDiamonds announced further progress at the Emperor Gold Mine in Fiji, in whichit has a 19% interest, and we look forward to the planned re-start of productionat the mine in 2008. We believe that the Emperor Gold Mine has the capacity toproduce gold at 100,000 Ounces per year for many years to come. At 30 November 2007, Templar had cash of US$5.5 million (£2.74 million). Wecontinue to evaluate further acquisition opportunities both in gold and basemetal projects and I look forward to keeping shareholders informed as to ourprogress with these and with our existing gold interests in both Georgia andFiji. Contacts: Templar Minerals David Lenigas, Chairman Tel: +44 (0) 7881 825378 Ian Stalker, Non Exec-Director Tel: + 27 11 783 5056 Beaumont Cornish Tel: +44 (0) 20 7628 3396 Roland Cornish Financial Dynamics Tel + 44 (0) 20 7831 3113 Ben Brewerton TEMPLAR MINERALS LTD GROUP INCOME STATEMENT FOR THE PERIOD 2 APRIL 2007 TO 30 SEPTEMBER 2007 Note Period 2 April to 30 September 2007 (unaudited) $'000 Administrative expenses (256)Share options expensed 5 (384) _____ Operating loss (640) _____ Interest receivable 407 _____ Loss on ordinary activities before (233)taxation Taxation on loss on ordinary -activities _____ Loss for the financial period (233) _____ Attributable to:Equity holders of the parent (225)Minority interests (8) _____ Basic loss per share expressed in 3 (0.06)US cents TEMPLAR MINERALS LTD GROUP BALANCE SHEET AS AT 30 SEPTEMBER 2007 As at 31 September 2007 Note (unaudited) $'000Assets Non-current assetsIntangible assets 4,818Tangible assets 7 20 _____ 4,838Current assetsTrade and other receivables 357Cash 15,526 _____Total current assets 15,883 _____TOTAL ASSETS 20,721 _____ Current LiabilitiesTrade and other payables (518) _____Total Liabilities (518) _____ Net Assets 20,203 _____ Shareholders' equityShare capital 4 -Share premium account 20,443Retained loss (225)Foreign exchange reserve (40)Share based payment reserve 384 _____ 20,562Minority interest (359) _____Total Equity 20,203 _____ TEMPLAR MINERALS LTD GROUP CASH FLOW STATEMENT FOR THE PERIOD 2 APRIL 2007 TO 30 SEPTEMBER 2007 Period 2 April to 30 September 2007 (unaudited) $'000 Cash outflow from operating activitiesOperating Loss (640) (Increase) in trade and other receivables (357) Increase in trade and other payables 518 Share options expensed 384 _____Net cash outflow from operating activities (95) _____ Cash flows from investing activitiesInterest received 407 _____Net cash inflow from investing activities 407 _____ Cash flows from investing activitiesPayments to acquire intangible assets (340)Payments to acquire tangible assets (20) _____Net cash outflow from investing activities (360) _____ Acquisitions and disposalsPayments to acquire subsidiaries (2,047)Cash acquired with subsidiaries 5 _____Net cash outflow from acquisitions and (2,042)disposals _____ Cash flows from financing activitiesIssue of ordinary share capital 18,831Share issue costs (1,215) _____Net cash inflow from financing activities 17,616 _____ Net increase in cash and cash equivalents 15,526 Cash and cash equivalents at beginning of -period _____Cash and cash equivalents at end of period 15,526 _____ TEMPLAR MINERALS LTD GROUP STATEMENT OF CHANGES IN EQUITY FOR THE PERIOD ENDED 30 SEPTEMBER 2007 Attributable to equity holders of the parent Called Foreign Share Retained up currency based earnings share Share translation payment capital premium reserve reserve reserve TotalGroup $ 000's $ 000's $ 000's $ 000's $ 000's $ 000'sAs at 2 April - - - - -2007Share capital - 21,658 - - - 21,658issuedCost of share - (1,215) - - - (1,215)issueAcquisition of - - - - - -subsidiariesLoss for the - - - - (225) (225)yearShare based - - - 384 - 384paymentsCurrency - - (40) - - (40)translationdifferences _____ _____ _____ _____ _____As at 30 - 20,443 (40) 384 (225) 20,562September 2007 _____ _____ _____ _____ _____ (continued from table above) Minority Total Equity InterestsGroup $ 000's $ 000'sAs at 2 April 2007 - -Share capital issued - 21,658Cost of share issue - (1,215)Acquisition of (351) (351)subsidiariesLoss for the year (8) (233)Share based payments - 384Currency translation - (40)differences _____ _____As at 30 September 2007 (359) 20,203 _____ _____ TEMPLAR MINERALS LTD NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 SEPTEMBER 2007 1 Basis of preparation The interim results have not been audited but were the subject of an independentreview carried out by the Company's auditors, Chapman Davis LLP. Their reviewconfirmed that the figures were prepared using applicable accounting policiesand practices consistent with those to be adopted in the statutory accounts forthe period ended 31 March 2008. The interim consolidated financial statements for the period ended 30 September2007 have been prepared in accordance with IAS 34 'Interim Financial Reporting'.Accordingly the interim financial statements do not include all of theinformation or disclosures required in the annual financial. The financial information contained in this document does not constitutestatutory accounts as defined by Section 240 of the Companies Act 1985 (England& Wales). In the opinion of the directors the financial information for thisperiod fairly presents the financial position, result of operations and cashflows for this period. Foreign currencies The functional currency of each entity is determined after consideration of theprimary economic environment of the entity. The group's presentational currencyis US dollars ($). 2 Segmental analysis Period ended 30 September 2007 (unaudited) $'000Retained loss by geographicalareaUnited Kingdom (151)Georgia (82) _____ (233) _____ Segment assetsUnited Kingdom 15,773Georgia 4,948 _____ Total assets 20,721 _____ 3 Loss per share The calculation of earnings per share is based on the loss after taxationdivided by the weighted average number of share in issue during the period: Period ended 30 September 2007 (unaudited) $'000 Net loss after taxation (225) Weighted average number of ordinary 370.4mshares used in calculating basic earningsper share Basic loss per share (expressed in US (0.06)centscents) As the inclusion of the potential ordinary shares would result in a decrease inthe loss per share they are considered to be antidilutive and, as such, adiluted loss per share is not included. 4 Share capital The authorised share capital of the Company and the called up and fully paidamounts at 30 September 2007 were as follows: $'000 Authorised Unlimited ordinary shares of no par value -each Called up, allotted, issued and fully paid Number of shares Nominal value $000's _____ _____Incorporation 1 -20 April 2007 for cash at 0.0437p per share 239,999,999 -4 May 2007 for cash at 5p per share 182,750,000 -11 May 2007 for non-cash consideration 300,000 -7 September 2007 for non-cash consideration 25,000,000 _____ _____As at 30 September 2007 448,050,000 - _____ _____ Total share options in issue During the period ended 30 September 2007, 10,000,000 options were issued. As at 30 September 2007 the options in issue were; Exercise Price Expiry Date Options in Issue 30 June 2007 _____ _____5p 4 May 2012 10,000,000 _____ 10,000,000 _____ No options lapsed or were cancelled and no options were exercised during theperiod to 30 September 2007. 5 Share based payments Under IFRS 2 'Share Based Payments', the Company determines the fair value ofoptions issued to Directors and Employees as remuneration and recognises theamount as an expense in the income statement with a corresponding increase inequity. Name Date Granted Date Vested NumberDavid Lenigas 4 May 2007 4 May 2007 2,000,000John Stalker 4 May 2007 4 May 2007 2,000,000Neil Herbert 4 May 2007 4 May 2007 2,000,000Guy Elliot 4 May 2007 4 May 2007 2,000,000Graham Mascall 4 May 2007 4 May 2007 2,000,000 _____ _____ _____Totals 10,000,000 _____ _____ _____ (continued from table above) Name Exercise Price Expiry Date Fair Value at (pence) Grant Date (pence)David Lenigas 5 4 May 2012 1.88John Stalker 5 4 May 2012 1.88Neil Herbert 5 4 May 2012 1.88Guy Elliot 5 4 May 2012 1.88Graham Mascall 5 4 May 2012 1.88 _____ _____ _____Totals _____ _____ _____ The fair value of the options vested during the six months ended 30 September2007 $0.384million (£0.188 million). The assessed fair value at grant date isdetermined using the Black-Scholes Model that takes into account the exerciseprice, the term of the option, the share price at grant date, the expected pricevolatility of the underlying share, the expected dividend yield and therisk-free interest rate for the term of the option. The following table lists the inputs to the models used for the period ended 30September 2007: 4 May 2007 issueDividend Yield (%) -Expected Volatility (%) 59.4Risk-free interest rate 4.8(%)Share price at grant 0.06date (£) The expected volatility reflects the assumption that the historical volatilityis indicative of future trends, which may, not necessarily be the actualoutcome. 6 Investment in subsidiaries Country of Proportion Nature of business Registration held Company _____ _____ _____DirectTemplar Georgia Ltd BVI 100% Holding Company IndirectVia Templar Georgia LtdGoldencrest Enterprises Ltd BVI 90% Holding Company Via Goldencrest Enterprises LtdMetalon Georgia LLC Georgia 100% Mineral Exploration 7 Tangible assets Plant and equipment TotalGroup $ 000's $ 000'sAt 2 April 2007Additions 20 20 _____ _____As at 30 September 2007 20 20 _____ _____ 8 Post balance sheet events On 11 October 2007, the Company purchased 250,000,000 ordinary shares inAIM-traded River Diamonds Plc pursuant to a private placement, at a price of1.5p share for a total consideration of $7,653,750 (£3,750,000). Following thisplacement, the company owns in aggregate 270million ordinary shares in RiverDiamond Plc, representing 24.8% of River Diamond's issued share capital. On 17 October 2007, the Company purchased a further 10,000,000 ordinary sharesin AIM-traded River Diamonds Plc, at a cost of $504,383 (£247,550). Followingthese purchases, the company owned in aggregate 260million shares in RiverDiamond plc, representing 25.72% of River Diamond's issued share capital. On 19 October 2007, the Company purchased a further 5,000,000 ordinary shares inAIM-traded River Diamonds Plc, at a cost of $243,141 (£119,000). Following thesepurchases, the company owned in aggregate 265million shares in River Diamondplc, representing 26.18% of River Diamond's issued share capital. On 23 November 2007, the Company announced Guy Elliot had resigned as anon-executive director of the company. Independent Review Report to Templar Minerals Ltd Introduction We have been instructed by Templar Minerals Ltd (the company) to review thefinancial information comprising the consolidated income statement, consolidatedbalance sheet, consolidated cash flow statement and notes thereon and we haveread the other information contained in the interim report and consideredwhether it contains any apparent mis-statements or material inconsistencies withthe financial information. This report is made solely to the Company in accordance with guidance containedin Bulletin 1999/4 "Review of interim financial information" issued by theAuditing Practices Board. To the fullest extent permitted by law, we do notaccept or assume responsibility to anyone other than the company, for our work,for this report, or for the conclusions we have formed. Directors' responsibilities The interim report, including the financial information contained therein, isthe responsibility of, and has been approved by the Directors. The directors areresponsible for preparing the interim report in accordance with the rules of theLondon Stock Exchange for companies trading securities on the AlternativeInvestment Market which require that the half-yearly report be presented andprepared in a form consistent with that which will be adopted in the company'sannual accounts having regard to the accounting standards applicable to suchannual accounts. Review work performed We conducted our review in accordance with guidance contained in Bulletin 1999/4issued by the Auditing Practices Board for use in the United Kingdom by auditorsof fully listed companies. A review consists principally of making enquiries ofthe Directors and applying analytical procedures to the financial informationand underlying financial data and based thereon, assessing whether theaccounting policies and presentation have been consistently applied unlessotherwise disclosed. A review excludes audit procedures such as tests ofcontrols and verification of assets, liabilities and transactions. It issubstantially less in scope than an audit performed in accordance with UnitedKingdom Auditing Standards and therefore provides a lower level of assurancethan an audit. Accordingly we do not express an audit opinion on the financialinformation. Review conclusion On the basis of our review we are not aware of any material modifications thatshould be made to the financial information as presented for the period ended 30September 2007. CHAPMAN DAVIS LLP Chartered Accountants 2 Chapel Court London SE1 1HH This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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