31st Dec 2008 07:00
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For Immediate Release |
31 December 2008 |
Triple Plate Junction PLC
("TPJ" or the "Company")
Interim Results for the Six Months ended 30 September 2008
Triple Plate Junction PLC (AIM : TPJ), the gold, copper-gold and mineral exploration and processing company is pleased to announce interim results for the six months ended 30 September 2008.
Summary of key points:
Africa
Zambia facility entered production - first sales in November
Copper production expected to grow rapidly
Papua New Guinea
Recently announced partnership with Newmont, one of the world's largest gold miners
Newmont brings US$15m to joint-venture over five years
Agreement with Barrick has identified two areas of interest
Drilling under Barrick agreement to start early in 2009
Vietnam
At Pu Sam Cap, the presence of the following established:
- Large-scale alkali porphyry copper-gold and;
- Smaller-scale high-grade vein gold mineralization
Financial
Net cash generated: £1.97m
Net loss down: £877,000 (2007: £967,000)
Cash balance: £655,000 at 30 September 2008
Ian Gowrie-Smith, Chairman, commented:
"Triple Plate Junction PLC (TPJ) now has agreements with one of the world's largest gold miners, Newmont and the world's largest gold producer, Barrick. These are both substantial achievements for a small business.
"Copper production has commenced in Zambia, giving TPJ the prospect of establishing its own cash flow to support the rest of the Group. Meanwhile progress with exploration in Papua New Guinea and Vietnam gives us great encouragement for the future."
WJS (Bill) Howell, BSc(Hons), FAusIMM,CP (Man), as the qualified Executive Director has reviewed this statement and authorised its release.
For further information please contact:
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Triple Plate Junction PLC |
020 73409970 |
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Geoff Walsh, Chief Executive / Peter Wright, Finance Director |
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Buchanan Communications |
020 7466 5000 |
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Tim Anderson, Isabel Podda |
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Arbuthnot Securities |
020 7012 2000 |
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John Prior |
TRIPLE PLATE JUNCTION PLC
Chairman's Statement
Dear Shareholder
Triple Plate Junction PLC (TPJ) has responded rapidly to the current challenging economic environment.. As we have announced to the market previously, our strategy is to concentrate on achieving positive cash flow from our copper operations in Africa and accept farm-ins to our major licenses in South East Asia while retaining a meaningful carried interest through to the mining stage of development.
Although the Company has faced several difficulties bringing its Zambia facility into production, operations have now progressed with the commencement of small ore sales in November. These sales should increase rapidly as the newly acquired and installed concentrating machinery comes into production.
As announced recently, the Company has entered into a partnership with one of the world's largest gold miners, Newmont Mining Corporation for the exploration of six of seven contiguous tenements held by TPJ's wholly-owned subsidiary Terenure Limited in the highly mineralized Morobe gold-copper belt of Papua New Guinea.. Under this venture agreement Newmont is obliged to spend US$15m over the next five years if it wishes to secure a 70% interest in those licences, of which US$1.25M will conditionally be invested in the Company by way of a subscription for 17,000,000 new Ordinary Shares at 5p per share, The holding equal to 10% of TPJ's share capital as enlarged by the investment, could increase to as much as 18.3% on the basis of the Company's current issued share capital, by the exercise of a further 17,000,000 warrants at 7p per ordinary share. TPJ in its own right has already worked up and drill-tested a number of significant gold-bearing zones extending up to three kilometres in strike length at the promising Otibanda gold project which will form part of the Venture.
The Company secured Barrick Gold Corporation, the world's largest gold producer, as our partner in the seventh tenement in the Morobe gold-copper belt, the Wamum project area, in Papua New Guinea in October 2007 whereby Barrick is entitled to spend AU$5,000,000 to secure an 80% interest in the licence, with a minimum expenditure in the first two years of AU$800,000.
The Wamum Exploration Licence lies between Barrick's operating Kainantu gold mine and surrounding exploration tenements and the Wafi/Golpu gold-copper deposit on which the Harmony-Newcrest joint venture company, Morobe Mining Joint Venture Limited is conducting feasibility studies for development.
In the first year since entering the agreement with TPJ, Barrick has completed a geological mapping and sampling program in the Wamum Licence in conjunction with an airborne magnetic and radiometric geophysical survey, and plans to carry out an initial phase of diamond drilling early in 2009 to test the first two areas of interest identified by the work.
Although the Company has cutback exploration budgets and overall costs in Vietnam, our exploration work at the Pu Sam Cap project has established the presence of large-scale alkali porphyry copper-gold and smaller-scale high-grade vein gold mineralization, and the project area remains very prospective. As part of the Newmont venture agreement in Papua New Guinea, Newmont will relinquish its 25% equity in the Vietnam joint venture and residual rights to a net smelter return. This will leave TPJ free to look for a new partner, and opens the opportunity to bring in smaller to mid-tier companies which may wish to target the smaller-scale high grade deposits that may not be a priority interest to a major international company.
The Directors are of the opinion that the Company has sufficient resources available to it to fulfil its current strategy. Should such resources prove to be insufficient, TPJ will be required to seek further funding or review its current strategy, which is likely to result in the disposal of some of its assets.
I would like to extend the Board's gratitude to the staff who have been working so hard on the shareholders' behalf; their efforts will I hope reward them with a prosperous future and the shareholders with a just return on their investments.
IanGowrie-Smith
Chairman
30 December 2008
TRIPLE PLATE JUNCTION PLC
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Consolidated income statement |
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6 months to 30 Sept |
6 months to 30 Sept |
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2008 |
2007 |
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£'000 |
£'000 |
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|
Unaudited |
Unaudited |
||
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Revenue |
174 |
- |
|
|
Cost of sales |
(122) |
- |
|
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Gross profit |
52 |
- |
|
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Administration expenses |
(937) |
(1,025) |
|
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Operating profit |
(885) |
(1,025) |
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Finance income |
8 |
58 |
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Profit / (loss) before taxation |
(877) |
(967) |
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Taxation |
- |
- |
|
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(Loss) for the period |
(877) |
(967) |
TRIPLE PLATE JUNCTION PLC
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Consolidated balance sheet |
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30 Sept |
30 Sept |
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2008 |
2007 |
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£'000 |
£'000 |
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|
Unaudited |
Unaudited |
||
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Assets |
|||
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Non-current assets |
|||
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Property, plant and equipment |
2,225 |
1,660 |
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Intangible assets |
19,692 |
17,997 |
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Total non-current assets |
21,917 |
19,657 |
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Current assets |
|||
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Inventories |
91 |
- |
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Trade and other receivables |
550 |
695 |
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Cash and cash equivalents |
655 |
1,287 |
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Total current assets |
1,296 |
1,982 |
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Current liabilities |
|||
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Trade and other payables |
526 |
263 |
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Total current liabilities |
526 |
263 |
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Net current assets |
770 |
1,719 |
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Net assets |
22,687 |
21,376 |
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Equity |
|||
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Issued capital |
1,413 |
944 |
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Share premium |
20,414 |
16,969 |
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Translation Reserve |
(279) |
- |
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Share Option reserve |
1,327 |
1,251 |
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Retained earnings |
(188) |
2,220 |
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Total equity |
22,687 |
21,384 |
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Minority interests |
- |
(8) |
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Total equity |
22,687 |
21,376 |
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TRIPLE PLATE JUNCTION PLC
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Consolidated cashflow statement |
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For the period 1 April 2008 to 30 September 2008 |
6 months to 30 Sept |
6 months to 30 Sept |
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2008 |
2007 |
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£'000 |
£'000 |
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Unaudited |
Unaudited |
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Cash flows from operating activities |
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Loss for the period |
(877) |
(967) |
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Adjusted by: |
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Depreciation of non-current assets |
111 |
116 |
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Share based payment |
- |
86 |
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Loss on disposal of assets |
- |
8 |
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Finance income in the income statement |
(8) |
(58) |
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(774) |
(815) |
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Movements in working capital: |
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Increase in trade and other receivables |
(7) |
(139) |
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Increase in inventories |
(8) |
- |
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Increase / (decrease) in trade and other payables |
119 |
(407) |
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Net cash used in operating activities |
(670) |
(1,361) |
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Cash flows from investing activities |
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Interest received |
8 |
58 |
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Payments for property plant and equipment |
(638) |
81 |
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Payments for intangible assets |
(951) |
(1,399) |
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Net cash used in investing activities |
(1,581) |
(1,260) |
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Financing Activities |
|||
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Proceeds from issue of equity shares |
2,000 |
- |
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Issue Costs |
(30) |
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Net cash generated by financing activities |
1,970 |
- |
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Total decrease in cash and cash equivalents |
(281) |
(2,621) |
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Foreign Exchange movements |
(241) |
- |
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Cash and cash equivalents at the start of the period |
1,177 |
3,908 |
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Cash and cash equivalents at the end of the period |
655 |
1,287 |
TRIPLE PLATE JUNCTION PLC
Notes to the consolidated financial statements
Basis of preparation
The unaudited consolidated interim financial information is for the six month period ended 30 September 2008. The financial information has been prepared in accordance with the accounting policies which are based on the recognition and measurement principles of IFRS in issue as adopted by the European Union (EU) and are effective at 31 March 2009 or are expected to be adopted and effective at 31 March 2009. The interim financial information does not include all of the information required for full annual financial statements.
The interim financial information has not been audited nor has it been reviewed under ISRE 2410 of the Auditing Practices Board. The financial information set out in this interim report does not constitute statutory accounts as defined in Section 240 of the Companies Act 1985. The Group's statutory financial statements for the year ended 31 March 2008 prepared under IFRS have been filed with the Registrar of Companies. The auditors report on those financial statements was unqualified and did not contain a statement under Section 237(2) of the Companies Act 1985.
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