14th Mar 2007 07:00
Thor Mining PLC14 March 2007 THOR MINING PLC Interim report for the six months to 31 December 2006 Dated: 14 March 2007 Thor Mining PLC ("Thor" or the "Company") the specialist metals companycurrently focussed on advancing tungsten-molybdenum and uranium projects in theNorthern Territory of Australia, today announced its interim results for theperiod ended 31 December 2006. CEO Report The CEO presents his review for the period, together with the consolidatedfinancial report for the six months ended 31 December 2006. Operating Review During the first half of the 2007 financial year, Thor has continued to progressits key asset, the 100% owned Molyhil Tungsten-Molybdenum project ("Molyhil")located in central Australia. The definitive feasibility study ("DFS") wascompleted as scheduled and confirmed that the project is technically andeconomically viable. The company completed the purchase of Hale Energy Limited, with over 3,000 sq kmof Uranium exploration ground. This highly prospective group of Uraniumexploration tenements is also located in central Australia. A vigorous and wellfunded exploration program began in October 2006, and is ongoing. Thor closed its Australian A$10.0 million initial public offering ("IPO") fullysubscribed ahead of the dual listing of its shares on the Australian StockExchange ("ASX") in September 2006. MOLYHIL TUNGSTEN - MOLYBDENUM PROJECT Exploration A program of Deep Reverse Circulation was successful in identifying extensionsto the Yacht Club and Southern ore zones. The program also included geotechnicaland hydrogeological studies over areas designated for future mine developmentinfrastructure. Three extra holes were completed beneath the Yacht Club andSouthern ore bodies as a result of encouraging geology. A total of 10 holes werecompleted for 2,038m. The results have confirmed depth extensions at both the Yacht Club and Southernorebodies. Significant RC Results ( > 0.10%) Hole ID Depth From Depth To Width MoS2 WO3TMRC24 130 131 1 < 0.10 0.33% 133 135 2 < 0.10 0.16% 139 147 8 0.16% 0.45% 149 155 6 0.63% 0.10%TMRC30 135 141 6 0.13% 0.37% 149 154 5 0.60% 0.22% 155 174 19 0.64% 0.11% inc 156 161 5 0.74% 0.30% 175 177 2 < 0.10% 0.19% 187 194 7 0.18% 0.12% Significant RC Results ( > 0.10%) (continued) Hole ID Depth From Depth To Width MoS2 WO3TMRC31 154 156 2 0.09% 0.63% 158 159 1 0.10% 0.11% 170 189 19 0.33% 0.16% inc 173 180 7 0.57% 0.38%TMRC32 145 150 *5 0.38% 1.25% 150 151 1 0.16% < 0.10% 153 159 6 0.13% 0.16% 161 163 2 < 0.10% 0.42% 164 172 8 0.54% 0.34% 176 180 4 0.50% < 0.10% 185 186 1 < 0.10% 0.21% 187 188 1 0.10% < 0.10% 192 193 1 < 0.10% 0.19% 193 194 1 0.14% < 0.10% 208 211 3 0.61% 0.16%TMRC51 145 148 3 0.12% 0.37% 153 155 2 0.16% 0.42% 159 169 10 0.23% 0.88% inc 163 168 5 0.43% 1.61% 171 173 2 0.08% 0.23% 179 180 1 0.95% 1.30% *5m composite value Thor has started its 2007 exploration program at Molyhil. A 3,084m program ofreverse circulation drilling has been designed to infill and extend beyond theproposed pit design outlined in the recently completed DFS. The objective of theprogram is to increase the reserve and resources and ultimately extend theproposed life of mine at Molyhil. Drilling is designed to infill up dip zones of Hanging Wall mineralizationdiscovered in last year's program, as well as drill extensions to several of thedeeper zones below the Southern ore body. Thor's development of Molyhil is being conducted in parallel with its NorthernTerritory uranium exploration programs due to begin in late March 2007 DFS. The metallurgical testwork program was successfully completed as part of theDFS. This allowed the final concentrate volumes and specifications to becalculated. The production estimates and concentrate specifications exceeded theinitial scoping study, confirming potential production of approximately 100,000mtu of tungsten oxide per annum and 1,000,000 lbs of Mo per annum. The DFS confirmed that the project is technically and economically viable, withstrong financial returns and a rapid capital payback. Significantly, the DFSindicates that a capital payback period of less than 7 months can be achievedwith the stage 1 pit, with the operation generating a positive pre-royalty cashflow EBIT of A$117 million over its initial 4-year life, using a base case saleprice of US$20/lb of molybdenum and US$204/mtu for tungsten. At these base caseprices the project has a net present value ("NPV") of A$88 million and aninternal rate of return ("IRR") of 111%, using a discount rate of 8%. OTHER Product Marketing Penfold Marketing Pty Ltd ("Penfold") (www.penfoldlimited.com) have beenexclusively mandated until 15 March 2007 to promote and market Molyhil to securefunding and in due course be appointed as the company's worldwide agent tosecure an offtake agreement by the 15th of March 2007. Penfold are a specialist metals marketing and business investment company basedin Australia with offices in Adelaide and Shanghai. Over the last decade Penfoldhas developed many new China business opportunities sourced from its globalcustomer base. Penfold also has established relationships with mining and metalsoperations located elsewhere in Asia, including Japan, South Korea, Malaysia andIndia. The company has included a list of interested parties as part of themandate and will contact them in due course. Environmental and Notice of Intent ("NOI") Keith Lindbeck and Associates have been commissioned to complete the NOI and theenvironmental studies. A draft version of the NOI was submitted to the NT MinesDepartment for review. Negotiation of Mining Agreement Formation of a development review committee has commenced for the negotiationswith the Central Land Council with the aim to complete a mining agreement inparallel with the NOI. Initial meetings with the traditional owners are planned,with the aim to complete the agreement by the end of March 2007. Capital Cost Estimation Thor has sourced second-hand crushing and process equipment to accelerate thetimetable and reduce capital costs. They have also identified all long leaditems and have completed all equipment lists. This work is on-going. URANIUM EXPLORATION Uranium exploration has begun with reconnaissance work at Harts Range and thecompleteion of a major HoistEM survey at Hale River and Plenty Highway Projects. Harts Range The Harts Range uranium prospect located approximately 200km east-northeast ofAlice Springs in the Arunta Province of the Northern Territory. The projectincludes six tenements EL24827, EL24734, EL24735, EL24736, EL24765 and A24766.Reconnaissance sampling of the Harts Range tenement area was completed duringOctober, with several areas traversed. The main objective of the samplingprogram was to identify known prospects and determine optimal access routes andlogistics for follow-up exploration in 2007. Eleven rock chips were taken on two out of the six granted tenements. Analysiswas completed for 39 elements, with the following results returned: SAMPLE Ba Ce Cs Ga Nb Pb Rb Th U Y Zn Zr IDHR001 627 55.7 0.46 36.4 5.2 67 92.7 28.4 7.61 103.5 35 82HR002 101.5 35 0.13 50.8 3.2 120 12.5 9.04 6.71 115 0.52% 71HR003 122.5 71.2 0.11 36.1 0.4 92 9.1 35.5 7.19 57.9 45 59HR004 137 114 0.19 45.2 16.7 20 19.2 8.49 6.65 95.7 13 189HR005 86 103.5 0.03 52.3 9.5 39 3.1 19.55 6.36 60.5 19 274HR006 22.3 19.7 0.07 27.2 4.2 50 2 3.55 16.45 21.7 99 86HR007 862 173.5 3.84 15.4 10.8 1.62% 100.5 684 31.60% > 10000 48 923HR008 1395 90.3 5.23 21.3 14.5 50 197.5 5.52 227 36 90 457HR009 1225 89.3 5.41 22.6 13.6 33 153 5.5 120.5 38.3 91 369HR010 185.5 69.8 1.16 13.1 3.5 60 81.9 50.3 210 117.5 12 10HR011 240 12.5 1.43 17.3 647 294 84 50.1 0.61% 245 9 29 All units are in ppm unless otherwise stated > 10,000 ppm - beyond detection limits Six samples HR1-6 were taken in the Eagle Beak area on EL24827. Strong epidotealteration was noted related to shearing of altered felsic rocks, although nosignificant uranium values were returned. Samples HR1-3 were elevated instrontium and sample HR2 returned a value in excess of 0.52% Zn. Five samples were taken at the Ryoma and Casper prospects on EL24735, withresults confirming the prospectivity of this area returning elevated uraniumvalues ranging from 121ppm to 227ppm U. Results were also elevated in rare earthelements ("REE") such as Yttrium and Zirconium. Sample HR8 also returned up to1.62% Pb. The results included a single sample result of 31.6% U. This hand-picked samplecontained a significant portion of visible uraninite, and is not representativeof the complete zone of shearing noted in mafic amphibolites. Results were alsoelevated in REE, which is often associated with late-stage intrusives. Significantly, a number of large pegmatite bodies are located within the HartsRange project. The result of 0.61% U from the Casper Prospect confirms this,with the sample also anomalous in Nb and Cs. Work to date specifically in the region of the Ryoma and Casper Prospectsindicates that sporadic high uranium grades occur along NW trending structuralcorridors, suggesting a vein-type model for mineralisation such as that atSchwartzwalder in Colorado (USA). Mineralisation here occurs in numerous lensesassociated with a major shear fault network and along contacts between micaschist and gneissic rocks. They occur generally in clusters and are of smallertonnage but high in grade. In light of these encouraging initial results, a second exploration programfurther ground surveys were taken at Harts Range and Bundey River. Ascintillometer orientation survey was started late November 2006. Scintillometerreadings were taken at various locations including several prospects withhistoric uranium exploration results. In total, fourteen samples were collected. Harts Range - EL24736 At the Haddock Creek and Daicos prospects, a number of sub-parallel pegmatiteswere surveyed, with a maximum count of 19,000 cps. Four samples were takenwithin EL24736, with one 1.5kg sample returning a very high uranium result of8.87% U with associated REE, tantalum, niobium, and yttrium. Samples HR12, HR14and HR15 were also anomalous, with results ranging from 146ppm to 0.27% uranium. Further Haddock-style anomalies have been identified at points along astratigraphic arc extending north. Approximately 12 km of prospective strikelength has been identified representing potential host extensions or repetitionsof epidosite-pegmatoid layers. SAMPLE EAST NORTH PROSPECT CPS COMMENTS Th(ppm) U(ppm) ID (GDA94) (GDA94) HR 12 513123 7445215 Haddock 1200-1800 Pegmatite. 25.4 158.5 Creek Highly Anomalous point source. HR 13 516902 7439841 Daicos 6000-7000 Qtz Pegmatite. 0.71% 8.87% Anomalous zone 18m by 20-50cm wide at contact. HR 14 516902 7439841 Daicos 6000-7000 Qtz Pegmatite. Fault zone.? 99.5 925 Anomalous parallel zone to the south. HR 15 516842 7439565 Daicos 1500 Large Pegmatite above 245 0.27% HR13-14 Max 19,000cps. All units are in ppm unless otherwise stated Harts Range - EL24765 Five samples (HR16-HR20) were taken from the Garnet Prospect, located onadjacent tenement EL24765, with background readings at this locality rangingfrom 450-6600cps. Samples from this area were taken here in a medium-to-finegrained altered pegmatite, rich in garnet. The results were very encouragingwith two samples returning elevated uranium values of 0.17% and 0.26%. PNC mapped this area in 1993 and determined that the strongest radioactivityoccurs where the pegmatite has been more extensively altered to garnet. HistoricPNC assays at this prospect ranged between 18-2,900ppm U, 100-4,000ppm Y and100-2,600ppm Nb. Garnet contaminated pegmatite returned the highest assays whilegarnet-quartz-biotite alteration returned lower grades. SAMPLE EAST NORTH PROSPECT CPS COMMENTS Th(ppm) U(ppm) ID (GDA94) (GDA94) HR 16 514061 7429930 Garnet 450-6600 Altered Pegmatite Rich in garnet, 197 0.17% with skarn rafts in pegmatite. HR 17 514061 7429930 Garnet 450-6600 Altered Pegmatite Rich in garnet, 244 0.26% with skarn rafts in pegmatite. HR 18 514061 7429930 Garnet 450-6600 Altered Pegmatite Rich in garnet, 18.6 141 with skarn rafts in pegmatite. HR 19 514807 7429132 Ant 260 Anomalous zone associated with 20.5 34.4 silica-epidote veining. Past digging in Creek Bed. HR 20 513300 7429415 Near 2400 Single Anomaly, in thin (60-80cm) 7.48 87.8 Goanna Peg dyke, cross cutting bedded mafic metasediments (bio-qtz-fdsp). All units are in ppm unless otherwise stated Harts Range - EL24734 The Harts Range project area lies on the eastern margin of the Entia Dome. TheEntia Gneiss (Harts Range Group) forms the core of the Entia Dome, which islocated on the western part of the exploration license area. Regional exploration resulted in the identification of a single pegmatite some6.3km in length and 50m wide at Mt Mary. Two rock chips taken from 'hot spots'in this area returned elevated uranium values ranging from 107 to 246ppm. Asecond pegmatite, which also has extensive strike (2km) and width (63m), hasbeen identified to the north-east, but has not been sampled as yet. Further work is recommended in this area, given that these larger scaleintrusives are generally similar to the pegmatites mined at the Rossing Mine inNamibia. This type of deposit generally has lower grades (0.05% U) and hightonnages. Detailed mapping and radiometric surveys of these structures andpegmatites is essential in order to develop an exploration model which will leadto an economic uranium discovery in the Harts Range. Mt Mary has had littlehistoric exploration and will be a priority target in the Company's next fieldprogram. Ongoing exploration will also cover the SNAF and Kelly Prospects, located to thenorth and south of Mt Mary. Historic rock chip sampling by PNC at theseprospects returned very high-grade uranium assays ranging from 550-1,580 ppm U. The mineralisation at these prospects is believed to be an intrusive-style,similar to the uranium deposits occurring in the Olary Province in SouthAustralia, which are associated with mesoproterozoic intrusives. One of these,Radium Hill, has a number of uranium-rare earth bodies occurring in narrow,steeply-dipping pegmatitic veins in shear zones within quartzo-feldspathicgneiss. SAMPLE EAST NORTH PROSPECT CPS COMMENTS Th(ppm) U(ppm) ID (GDA94) (GDA94) HR 23 532703 7452531 Mt Mary 700-1500 Large Pegmatite 197 47.9 contact zone with biotite-gneissic rock. HR 24 532488 7452386 Mt Mary 450-2500 Signs of migmatite, 10.75 246 and partly melted bio-gneissic zenoliths. HR 25 532194 7452330 Mt Mary 450-2500 Similar 13.25 107.5 All units are in ppm unless otherwise stated Bundey River - EL25378 Three radiometric anomalies have been identified in the eastern part of theBundey River Project area from airborne radiometric survey compiled by theNorthern Territory Geological Survey onto a 1:250,000 map. Two samples were taken from this area with disappointing uranium results. Whileno calcrete samples were able to be taken, a consistently high scintillometercount was taken over the main drainage channel. Sampling returned an anomalousthorium value in exposed lateritic remnants, confirming the potential fortertiary basin and drainage hosted uranium. This area requires investigation by a small drilling rig mounted on a four wheeldrive vehicle. SAMPLE EAST NORTH PROSPECT CPS COMMENTS Th(ppm) U(ppm) ID (GDA94) (GDA94) HR 21 514060 7490850 Bundey River 350-900 Lateritised acid 34.1 21.5 volcanic? High background (350-900cps). HR 22 514060 7490850 Bundey River 350-900 Couldn't find source 565 9.32 of anomaly (more active than HR 21) All units are in ppm unless otherwise stated Hale River-Plenty Highway Projects The first phase of a comprehensive uranium exploration program has beencompleted. The first phase of the program comprised a helicopter borne HoistE surveycovering the Company's Hale River and Plenty Highway tenements, which cover some1,200 sq-km of tertiary basin sediments and palaeo-drainage channels prospectivefor sandstone and roll-front style uranium deposits. The survey was conducted over the northern section of the garden sub-basin (HaleRiver) and the Waite Basin (Plenty Highway). These basins are believed to holdthe highest promise for a new uranium discovery. The airborne surveys werecompleted on 200m and 400m line spacings respectively. The preliminary interpretation of plenty highway has been received frommodelling of the data. A total of 126 traverses were completed for 1,800 linekilometers. A HoistEM survey maps the palaeo-topography of the crystallinebasement due to significant electrical contrast between overlying unconsolidatedsediments and the basement rocks. This interpretation has identified three major palaeo-channels running in aneast-west direction. Several areas have been highlighted which are believed tocontain significant carbonaceous matter, the essential ingredient for theformation of Roll Front uranium deposits. CORPORATE Capital Raising and Listing on ASX During the half year, Thor received shareholder approval to proceed with theacquisition of Hale Energy. Shareholder approval was also received for a 1-for-3capital consolidation and an issue to existing shareholders of one warrant forevery two post-consolidation shares held ahead of the dual listing of Thor'sshares on the ASX via a A$10m IPO, which closed fully subscribed. The shareslisted on the ASX on 27 September 2007. The consideration for the acquisition of Hale Energy was the issue of 16 millionfully-paid shares and 8.5 million warrants. The funds raised from the IPO are being used to pursue an aggressive developmentstrategy focused on the recent completion of the DFS for the Molyhil Project. Appointment of Exploration Manager Thor appointed Mr Stuart Till as Exploration Manager. Mr Till is a WestAustralian geologist with 20 years exploration and development experience in avariety of geological terrains and commodities and for the last 10 years hasheld a senior role. He brings to Thor a pragmatic hands-on approach to modernexploration with a broad knowledge base including database and computing skills,field logistics, equipment maintenance in remote terrains, tenement managementand a thorough understanding of drilling equipment. Stuart's input will allowThor to manage a cost effective, efficient exploration department. Yours faithfully THOR MINING PLC John A Young Chief Executive Officer Independent Review Report to Thor Mining PLC Introduction We have been instructed by the Company to review the financial information setout on pages 9 to 12 and we have read the other information contained in thehalf-yearly report and considered whether it contains any apparent misstatementsor material inconsistencies with the financial information. This report is made solely to the Company in accordance with guidance containedin Bulletin 1999/4 "Review of Half-yearly 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 half-yearly report, including the financial information contained therein,is the responsibility of, and has been approved by the Directors. The Directorsare responsible for preparing the half-yearly report in accordance with therules of the London Stock Exchange for companies trading securities on AIM whichrequire that the half-yearly report be presented and prepared in a formconsistent with that which will be adopted in the Company's annual accountshaving regard to the accounting standards applicable to such annual 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 six monthsended 31st December 2006. CHAPMAN DAVIS LLP Chartered Accountants 2 Chapel Court London SE1 1HH Consolidated Income Statement For the 6 months ended 31 December 2006 Notes £'000 £'000 £'000 Six months ended 31 Six months ended Year ended December 2006 31 December 2005 (Unaudited) (Unaudited) 30 June 2006 (Audited)Administrative expenses (130) (105) (137)Corporate expenses (671) (198) (568)Other expenses - - (19)OPERATING LOSS (801) (303) (724) Interest receivable 19 20 33Other income - - 7LOSS BEFORE TAXATION (782) (283) (684) Taxation 3 - - - LOSS ON ORDINARY ACTIVITIES AFTERTAXATION (782) (283) (684)Loss per share:Basic 5 (0.80)p (0.47)p (1.13)p Consolidated Statement of Total Recognised Gains and Losses For the 6 months ended 31 December 2006 Notes £'000 £'000 £'000 Six months ended 31 Six months ended 31 Year ending December 2006 December 2005 30 June 2006 (Unaudited) (Unaudited) (Audited) Loss for the period (782) (283) (684)Unrealised surplus on foreign exchange 37 46 59Total recognised gains and lossesrelated to the period (736) (246) (625) Consolidated Balance Sheet At 31 December 2006 Notes £'000 £'000 £'000 31 December 2006 31 December 2005 30 June 2006 (Unaudited) (Unaudited) (Audited)NON-CURRENT ASSETSIntangible assets - deferredexploration costs 3,582 1,281 1,445Mine development costs 231 - -Property and equipment 24 10 9TOTAL NON-CURRENT ASSETS 3,837 1,291 1,454 CURRENT ASSETSCash and cash equivalents 2,603 751 484Trade and other receivables 94 46 32Other 14 10 19TOTAL CURRENT ASSETS 2,711 807 535TOTAL ASSETS 6,548 2,098 1,989 CURRENT LIABILITIESTrade and other payables (60) (83) (88)TOTAL CURRENT LIABILITIES (60) (83) (88)NET ASSETS 6,488 2,015 1,901 EQUITYIssued share capital 390 182 192Share premium 5,410 1,750 1,928Merger reserve 1,634 405 405Foreign exchange reserve 106 60 59Option revaluation reserve 513 - 100Retained losses (1,565) (382) (783)TOTAL EQUITY 6 6,488 2,015 1,901 Consolidated Cash Flow Statement For the 6 months ended 31 December 2006 £'000 £'000 £'000 Six months ended Six months ended Year ended 31 December 2006 31 December 2005 (Unaudited) (Unaudited) 30 June 2006 (Audited)CASH FLOWS FROM OPERATING ACTIVITIESNet cash from operating activities (449) (215) (476)Interest received 19 20 33Sundry income - - 7Net cash used in operating activities (430) (195) (436) CASH FLOWS FROM INVESTING ACTIVITIESPurchase of plant and equipment (19) (10) (12)Payments for exploration expenditure (833) (548) (760)Payments for mine development expenditure (231) - -Net cash used in investing activities (1,083) (558) (772) CASH FLOWS FROM FINANCING ACTIVITIESProceeds on share issue 3,991 - 300Share issue expenses (359) - (112)Net cash from financing activities 3,632 - 188 INCREASE/(DECREASE) IN CASH IN THE PERIOD 2,119 (753) (1,020) Cash at beginning of period 484 1,504 1,504 Cash at end of period 2,603 751 484 Notes to the Half-yearly Report For the 6 months ending 31 December 2006 1. BASIS OF PREPERATION (a) Presentation of Half-yearly results This half-yearly report was approved by the Directors on 1 March 2007. Thehalf-yearly results have not been audited, but were the subject of anindependent review carried out by the Company's auditors, Chapman Davis LLP.Their review confirmed that the figures were prepared using applicableaccounting policies and practices consistent with those adopted in the 2006annual report. The financial information contained in this half-yearly reportdoes not constitute statutory accounts as defined by Section 240 of theCompanies Act 1985. (b) Statement of Compliance This half-yearly report has been prepared in accordance with InternationalFinancial Reporting Standards, including IAS 34 'Half-yearly FinancialStatements', and complies with the listing requirements for companies tradingsecurities on the Alternative Investment Market. The half-yearly report has been prepared under the historical cost convention. 2. ACCOUNTING POLICIES (a) Basis of consolidation The consolidated financial statements comprise the financial statements of ThorMining PLC and its controlled entities. The financial statements of controlledentities are included in the consolidated financial statements from the datecontrol commences until the date control ceases. The financial statements of subsidiaries are prepared for the same reportingperiod as the parent company, using consistent accounting policies. All intercompany balances and transactions have been eliminated in full. (b) Exploration and development expenditure Exploration, evaluation and development expenditure incurred as accumulated inrespect of each identifiable area of interest. These costs are only carriedforward to the extent that they are expected to be recouped through thesuccessful development of the area or where activities in the area have not yetreached a stage which permits reasonable assessment of the existence ofeconomically recoverable reserves. Accumulated costs in relation to an abandoned area are written off in fullagainst the profit in the year in which the decision to abandon the area ismade. A regular review is undertaken of each area of interest to determine theappropriateness of continuing to carry forward costs in relation to that area ofinterest. Restoration, rehabilitation and environmental costs necessitated by explorationand evaluation activities are expensed as incurred and treated as explorationand evaluation expenditure. (c) Deferred taxation Deferred income tax is provided on all temporary differences at the balancesheet date between the tax bases of assets and liabilities and their carryingamounts for financial reporting purposes. Deferred income tax liabilities are recognised for all taxable temporarydifferences: (i) Except where the deferred income tax liabilityarises from the initial recognition of goodwill or of an asset or liability in atransaction that is not a business combination and at the time of transaction,affects neither the accounting profit nor taxable profit or loss; and (ii) In respect of taxable temporary differencesassociated with investments in subsidiaries, except where the timing of thereversal of the temporary differences can be controlled and it is probable thatthe temporary differences will not reverse in the foreseeable future. Deferred income tax assets are recognised for all deductible temporarydifferences, carry-forward of unused tax assets and unused tax losses, to theextent that it is probable that taxable profit will be available against whichthe deductible temporary differences and the carry-forward of unused tax creditsand unused tax losses can be utilised, except: (i) When the deferred income tax asset relating tothe deductible temporary difference arises from the initial recognition of anasset or liability in a transaction that is not a business combination and, atthe time of the transaction, affects neither the accounting profit nor taxableprofit or loss; or (ii) When the deductible temporary difference isassociated with investments in subsidiaries, in which case a deferred tax assetis only recognised to the extent that it is probable that the temporarydifferences will reverse in the foreseeable future and taxable profit will beavailable against which the temporary difference can be utilised. The carrying amount of deferred income tax assets is reviewed at each balancesheet date and reduced to the extent that it is no longer probable thatsufficient taxable profit will be available to allow all or part of the deferredincome tax asset to be utilised. Unrecognised deferred income tax assets are reassessed at each balance sheetdate and are recognised to the extent that it has become probable that futuretaxable profit will allow the deferred tax asset to be recovered. Deferred income tax assets and liabilities are measured at the tax rates thatare expected to apply to the year when the asset is realised or the liability issettled, based on tax rates (and tax laws) that have been enacted orsubstantively enacted at the balance sheet date. Deferred tax assets and deferred tax liabilities are offset only if a legallyenforceable right exists to set off current tax liabilities and the deferred taxassets and liabilities relate to the same taxable entity and the same taxationauthority. (d) Foreign currencies Transactions in foreign currencies are recorded at the rate ruling at the dateof the transaction. Monetary assets and liabilities denominated in foreigncurrencies are translated at the rate of exchange ruling at the balance sheetdate. All differences are taken to the profit and loss account. On consolidation of a foreign operation, assets and liabilities are translatedat the balance sheet rates, income and expenses are translated at rates rulingat the transaction date. Exchange differences on consolidation are taken to theforeign exchange reserve account. (e) Share based payments For equity settled share based payments the transactions are measured at thefair value of the equity instruments granted at the date of grant. No furtherre-measurement is conducted for subsequent movements in the fair value. 3. TAXATION No taxation has been provided due to losses in the period. 4. DIVIDENDS The Directors do not recommend the payment of a dividend. 5. LOSS PER SHARE Six months ending Six months ending Year ending 30 June 2006 (Audited) 31 December 2006 31 December 2005 (Unaudited) (Unaudited) £'000 £'000 £'000Basic loss per share for theperiod Loss (782) (283) (684)Weighted average number ofshares 97,250,362 60,558,333 60,795,776 Loss per share - pence (0.80) (0.47) (1.13) Prior period comparatives have been restated to reflect the impact of thecurrent period 1:3 share consolidation. No diluted loss per share is presented as the effect of exercise of outstandingoptions is to decrease the loss per share. 6. RECONCILIATION OF MOVEMENT IN SHAREHOLDERS' FUNDS Share Share Profit Other Total capital premium & loss reserves account account £'000 £'000 £'000 £'000 £'000 At 1 July 2006 192 1,928 (783) 564 1,901Share issue 198 3,482 - 1,229 4,909Unrealised foreign exchange - - - 47 47gainOption revaluation reserve - - - 413 413Loss for the period - - (782) - (782)At 31 December 2006 390 5,410 (1,565) 2,253 6,488 On 27 September 2006, Thor Mining PLC closed it's A$10,000,000 (50,000,000shares) initial public offering fully subscribed, ahead of its dual listing onthe Australian Stock Exchange. On this date, Thor Mining PLC also issued16,000,000 shares to acquire 100% of the voting shares in Hale Energy Limited asdetailed in note 7. Prior to issuing these new shares there was a 1:3 consolidation of the existingshares on issue. The movements in issued share capital during the period were as follows: 31 December 2006 30 June 2006 £'000 £'000Issued and paid-up share capitalOrdinary shares 390 192 Number £'000Movements in shares on issueBalance as at 1 July 2006 191,675,000 1921 for 3 share consolidation (127,783,334) -Share issue 66,000,000 198Balance as at 31 December 2006 129,891,666 390 7. BUSINESS COMBINATION On 27 September 2006, Thor Mining PLC acquired 100% of the voting shares of HaleEnergy Limited, a non-listed company incorporated in Australia. Hale EnergyLimited operates in mineral exploration and owns over 3,000 sq km of uraniumexploration ground, located in central Australia. The total cost of the combination was £1,277,120 and comprised of an issue ofequity instruments. The group issued 16,000,000 ordinary shares with a fairvalue of £0.0798 each, based on the quoted price of the shares of Thor MiningPLC at the date of the exchange, and 8,500,000 warrants, exercisable at 8 penceon or before 15 June 2009. The fair value of the identifiable assets and liabilities of Hale Energy Limitedas at the date of acquisition are: Recognised on Carrying value acquisition £'000 £'000 Deferred exploration costs 1,339 238Trade and other payables (62) (62)Fair value of identifiable net assets 1,277 176 Cost of acquisition:Shares issued, at fair value 1,277 Cash in/(out)flow on acquisition:Net cash acquired with the subsidiary -Cash Paid -Net cash in/(out)flow - From the date of acquisition, Hale Energy Limited has contributed losses of£11,000 to the net loss of the group. Thor Mining PLCCompany Information Directors John W Barr (Executive Chairman) John A Young (Chief Executive Officer) P Mark Smyth (Non-executive Director) Gregory M Durack (Non-executive Director) Secretary Stephen F Ronaldson (United Kingdom) Damian P Delaney (Australia) Registered office 3rd Floor 55 Gower Street London WC1E 6HQ Australian office c/o Sunsphere Pty Ltd Level 1 282 Rokeby Road Subiaco Western Australia 6008 Telephone: + 618 9327 0900 Fax: + 618 9327 0901 Shareholder Enquires Damian P Delaney [email protected] Shareholders are encouraged to register on the Company's website to receiveupdates by email. Web site: www.thormining.com Nominated Adviser and ARM Corporate Finance LimitedBroker London Telephone: + 44 (0) 20 7512 0191 Fax: + 44 (0) 20 7512 0747 Auditors Chapman Davis LLP London Solicitors Ronaldsons London Hardy Bowen Australia Registrar Computershare Investor Services plc PO Box 82 The Pavilions Bridgwater Road Bristol BS99 7NH Telephone: + 44 (0) 870 702 0002 Fax: + 44 (0) 870 703 6116 Registered number 05276414 Enquiries: John Young + 61 (0)419 954 020 Thor Mining PLC Chief Executive OfficerJohn Simpson 020 7512 0191 ARM Corporate Finance Nominated Adviser LimitedLeesa Peters 020 7429 6600 Conduit PR Limited Public Relations/UK or 020 7429 6603Jos SimsonNicolas Read + 61 (0) 8 9388 1474 Jan Hope & Partners Public Relations/ Australia Updates on the Company's activities are regularly posted on Thor's websitewww.thormining.com, which includes a facility to register to receive theseupdates by email. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Thor Energy