22nd May 2006 07:00
Tertiary Minerals PLC22 May 2006 Tertiary Minerals plc Interim Statement For the six months ended 31 March 2006 Chairman's Statement I am pleased to report the Company's progress and interim results for thesix-month period ended 31 March 2006. Review of Activities The past six months has seen pleasing progress on the Company's projectsreflected in a strong share-price recovery. In March 2006 a US$7 million joint venture funding agreement was signed with aconsortium of two Saudi companies for feasibility studies for the jointdevelopment of the Company's world-class Ghurayyah tantalum-niobium-zircon-(uranium-yttrium) deposit in Saudi Arabia. Preliminary feasibility studies arenow well underway and will focus on metallurgical testing, market studies andprocess definition. In addition, a 22 hole, 2,000 metre drilling programme hasjust been completed to collect a 50 tonne sample for follow up metallurgicaltestwork and also to provide assay information for resource upgrading for thatpart of the 400 million tonne Inferred Mineral Resource that will be mined inthe first years of the project. As a result of the joint venture fundingagreement the two Saudi Consortium members - A.H. Algosaibi & Bros. Co. and AlNahla Trading & Contracting Co. - have acquired significant shareholdings in theCompany and we look forward to working with them for the development ofGhurayyah and in the consideration of other mining projects. We are continuing to support our 24.6% held associated, AIM traded diamondexploration company, Sunrise Diamonds plc ("Sunrise"), and in February 2006participated in a small share placing to maintain our level of interest. Sunrisehas had an exciting first year as a public company and has built up a verysignificant diamond exploration portfolio in Finland with 7 recent kimberlitediscoveries in the Kuusamo area backed up by exclusive access to BHP Billiton'sextensive US$10 million Finland exploration database. Exploration work on our directly held Scandinavian exploration projects has beenat a "care and maintenance" level for the past 6 months whilst resources andattention were focused on funding and feasibility activities at Ghurayyah, butit is planned that work on the various gold and gold-copper exploration projectsin Sweden and Finland will be intensified during the rest of the year, as fundsallow. The past six-months efforts have seen the Company's share price improve from alow of less than 5p with a significant increase in trading volumes. I would liketo express my thanks to the Board for its support in bringing the Companythrough this pivotal period. Results The Group loss for the six month period was £134,012. This includes a share ofthe losses of the associated undertaking, Sunrise Diamonds plc, of £25,269,administration expenses of £133,470, exploration costs (written off) of £11,307,a profit of £25,052 arising from the increase in value of the Group's share ofthe net assets of Sunrise Diamonds plc and interest receivable of £10,982. Patrick L Cheetham 22 May 2006Executive Chairman For further information contact: Tertiary Minerals plc Tel: +44 (0)1625 626203Sunrise House Fax: +44 (0)1625 626204Hulley RoadMacclesfield Website ; www.tertiaryminerasl.comCheshire. SK10 2LP. UK Consolidated Profit and Loss Accountfor the six months to 31 March 2006 Six months to Six months to Twelve months 31 March 2006 31 March 2005 to 30 September Unaudited Unaudited 2005 £ £ £ ---------- --------- --------- Explorationcosts writtenoff 11,307 137,328 294,088 Administrativeexpenses 133,470 186,816 310,269 ---------- --------- --------- Operating loss (144,777) (324,144) (604,357) Share ofoperating lossof associate (26,925) - (44,892) Profit on disposal of intangiblefixed assets - - 75,100 Profit arisingfrom the increase invalue of the Group's shareof the net assets ofSunrise Diamondsresulting from its recentshare issue 25,052 - 134,371 Interestreceivable 10,982 9,798 22,579 Share of interestreceivable ofassociate 1,656 - 1,396 ---------- --------- --------- Loss on ordinaryactivitiesbeforetaxation (134,012) (314,346) (415,803) Tax on profit on - - -ordinary activities ---------- --------- --------- Loss for thefinancialperiod (134,012) (314,346) (415,803) ---------- --------- --------- Loss per share- basic(pence) (note2) (0.27) (0.70) (0.93) ---------- --------- --------- All amounts relate to continuing activities. Consolidated Statement of Total Recognised Gains and Lossesfor the six months to 31 March 2006 Six months to 31 March Six months to 31 March Twelve months to 30 2006 Unaudited 2005 Unaudited September 2005 £ £ £ ---------- --------- --------- Loss for theperiod (134,012) (314,346) (415,803) Foreign exchangetranslationdifferenceson foreigncurrency netinvestments 6,958 2,377 (19,488)in ---------- --------- ---------subsidiaries Total recognisedlosses since last (127,054) (311,969) (435,291)accounts ---------- --------- --------- Consolidated Balance Sheetas at 31 March 2006 As at 31 As at 31 As at 30 March 2006 March 2005 September Unaudited Unaudited 2005 £ £ £ ---------- --------- --------- Fixed assetsIntangible Assets 1,090,212 1,100,368 943,219Tangible Assets 11,535 6,338 5,676Share of net assets ofassociate 219,928 - 157,350 ---------- --------- --------- 1,321,675 1,106,706 1,106,245 Current assetsDebtors 1,062,839 91,184 65,705Cash at bank and in hand 605,082 656,880 435,969 ---------- --------- --------- 1,667,921 748,064 501,674 ---------- --------- --------- Creditors: amounts falling 131,119 161,442 37,916due within one year ---------- --------- --------- Net current assets 1,536,802 586,622 463,758 ---------- --------- --------- ---------- --------- ---------Creditors: amounts falling 915,537 - -due after more than oneyear ---------- --------- --------- Total assets less currentliabilities 1,942,940 1,693,328 1,570,003 ---------- --------- --------- Capital and reservesCalled up share capital 514,210 464,210 464,210Share premium account 3,826,853 3,376,865 3,376,862Merger reserve 131,096 131,096 131,096Profit and loss account (2,529,219) (2,278,843) (2,402,165) ---------- --------- --------- Shareholders' funds 1,942,940 1,693,328 1,570,003 ---------- --------- --------- Consolidated Cash Flow Statementfor the six months to 31 March 2006 Six months to 31 March Six months to 31 Twelve months to 30 2006 Unaudited March 2005 September Unaudited 2005 £ £ £ ---------- --------- --------- Net cashoutflow fromoperating (136,673) (148,393) (303,749)activities (note 3) Returns oninvestmentsand servicing 10,907 9,798 19,898of finance Capital expenditureand financial (139,523) (237,531) (158,333)investment Acquisitionand 65,250 - (150,000)disposals ---------- --------- --------- Net cash outflowbefore (330,539) (376,126) (592,184)financing Financing 499,652 475,340 470,487 ---------- --------- --------- ---------- --------- ---------Increase/(Decrease) in 169,113 99,214 (121,697)cash in theperiod(note 4) ---------- --------- --------- Notes to the Interim Statement 1. Basis of preparationThe interim statement has been prepared on the basis of the accounting policiesset out in the Company's financial statements for the year ended 30 September2005. The financial information set out in this statement relating to the yearended 30 September 2005 does not constitute statutory accounts for that period.Full audited accounts in respect of that financial year (which received anunqualified audit opinion and did not contain a statement under Section 237(2)or (3) of the Companies Act 1985) have been delivered to the Registrar ofCompanies. The Directors are satisfied that the Group has adequate resources to continue tooperate for the foreseeable future. For this reason they continue to adopt the"going concern" basis for preparing the accounts. The interim statement has beenapproved by the Directors and is unaudited. Comparative figures for the six months ended 31 March 2005 are extracts from theinterim report for that period and are also unaudited. 2. Loss per shareLoss per share has been calculated on the attributable loss for the period andthe weighted average number of shares in issue during the period. Six months to 31 March Six months to 31 March Twelve months 2006 2005 to Unaudited Unaudited 30 September 2005 ---------- --------- --------- Loss for theperiod (£) (134,012) (314,347) (415,803)Weightedaverage shares 49,415,598 42,629,883 44,530,682in issue (No.)Basic loss per (0.27) (0.70) (0.93)share ---------- --------- ---------(pence) The loss attributable to ordinary shareholders and the weighted average numberof ordinary shares used for the purpose of calculating diluted earnings pershare, are identical to those used to calculate the basic earnings per ordinaryshare. This is because the exercise of share warrants would have the effect ofreducing the loss per ordinary share and is therefore not dilutive under theterms of FRS 14. 3. Reconciliation of operating loss to net cash outflow from operatingactivities Six months to 31 Six months to 31 March 2005 Twelve months March Unaudited to 2006 Unaudited 30 September 2005 £ £ £ ---------- --------- --------- Operating (145,281) (324,144) (604,357)loss Depreciation charge 1,491 1,742 3,035 Intangiblefixed assetswritten off - 95,616 305,921 Disposal offixed assets 2,673 - (74,900) (Increase)/Decrease in (17,080) (20,601) 4,878debtors Increase/(Decrease) in 21,524 98,994 (24,532)creditors Share of operatingloss of subsidiaryprior to it - - 86,206becoming an ---------- --------- ---------associate Net cash outflow from operatingactivities (136,673) (148,393) (303,749) ---------- --------- --------- 4. Reconciliation of net cash outflow to movement in net funds Six months to 31 March 2006 Six months to 31 March Twelve months Unaudited 2005 to Unaudited 30 September 2005 £ £ £ ---------- --------- ---------Increase/(Decrease) in 169,113 99,214 (121,697)net cashin the periodOpening netfunds 435,969 557,666 557,666 ---------- --------- --------- Closing netfunds 605,082 656,880 435,969 ---------- --------- --------- 5. Financial information regarding associated undertaking At the balance sheet date Tertiary Minerals plc owned 24.58% of Sunrise Diamondsplc's net assets. 6. Interim report Copies of this interim report will be sent to all shareholders and are availablefrom Tertiary Minerals plc, Sunrise House, Hulley Road, Macclesfield, Cheshire,SK10 2LP, United Kingdom. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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