29th Apr 2005 09:25
Centamin Egypt Limited29 April 2005 CENTAMIN EGYPT LIMITED ("Centamin" or the "Company") ACN 007 700 352 QUARTERLY REPORT FOR PERIOD ENDING 31 MARCH 2005 * Security Permits granted for return to work at Sukari * New 30 year Sukari Mining (Exploitation) Lease of 160km2 * Tax exemptions and royalty arrangements unchanged * 50,000m Drilling Program commences at Sukari Hill • Sukari Project Since receiving the Security Permits the Company has moved quickly to mobilisepersonnel and equipment and we are please to report that drilling has nowrecommenced in the Amun zone (infill) and the Ra zone (step-out). The Company isnow embarking on its most aggressive drilling program to date targetingcompletion of 50,000m by the end of the calendar year. The Company has previously drilled 322 holes for 66,000m, predominantly in thesouthern 800m (Amun and Ra zones) of the mapped 2.5km granodiorite porphyryoutcrop. The current measured, indicated and inferred resource defined in thisarea is 2.94M oz. This resource has been calculated independently by Hellman andSchofield to JORC standards. Geological logging of the diamond drill core indicates that the zones ofmineralisation are well defined within the Sukari porphyry. Mineralisation isrelated to stockworks, brecciation, quartz veining and contact mineralisation,these are traceable along the strike and dip of the Sukari porphyry. Themineralised system has now proven to be continuous from section to section asthe drilling has progressed into the Ra zone, with the mineralisation beingconsistent with the mineralisation logged in the Amun Zone. In order to appreciate the potential at Sukari it is important to understandthat the Amun and Ra zones are the same continuous mineralisation containedwithin the Sukari outcrop, with the differentiation being made purely for easeof reference rather than being separate structures. As such Sukari has thecapacity to host a multi million ounce single pit deposit, with much of the Razone yet to be included in the resource calculation and the Gazelle and Pharaohzones yet to be tested by drilling. • Bankable Feasibility Study At the time activities were interrupted, the company had completed a scopingstudy and had commenced work on a Bankable Feasibility Study into thedevelopment of a 4 to 5 million tonne per annum processing facility, forecast toproduce an initial 250,000 oz of gold per annum. As part of this study, twotonnes of metallurgical samples were collected which have now arrived in Perth.The proposed test-work programme is to be focussed on 3 key areas: - additional comminution analysis for optimal grinding circuit sizing;- flotation testwork at various grind sizes;- whole of ore leach at various grind sizes. Variability tests will also be conducted on a variety of ore types. Asignificant number of these tests have been carried out previously however moreneed to be carried out as both potential process flow sheets (flotation and CIL)require optimisation to determine which capital/operating cost profile providesthe best economics. This work is scheduled to take up to 9 weeks from samplepresentation. BFS completion is targeted for first quarter 2006. • Corporate As previously announced, agreement was reached with the Egyptian MineralResource Authority (EMRA) for a return to work at Sukari. EMRA signed theSecurity Permits required to re-commence work and the Company is also pleased toadvise that a new environment of co-operation now exists between the parties,together with a joint desire to begin to develop the vast mineral wealth ofEgypt. His Excellency Engineer Sameh Fahmy, the Minister for Petroleum and MineralResources, stated that "The Egyptian Government looks forward to a long andsuccessful partnership with Centamin and its subsidiary Pharaoh Gold Mines NL.The mineral resource industry in Egypt has a very positive future which to datehas not been fully appreciated. I will be fully supportive of the company'sdevelopment and exploration activities in order to fast track Egypt's firstmodern gold operation. All the problems of the past are behind us and the futureis very exciting for the Sukari project." The Company has re-commenced operations on a new Mining (Exploitation) Leasecovering an area of 160 km2 that contains the proposed Sukari mine site andsurrounding prospects. This lease is issued under the existing Law 222 of 1994,which was enacted by the Egyptian Government specifically to accommodate thecompany's exploration and mining activities in the Eastern Desert. Law 222 remains unchanged and as such the Company has title for a period of 30years commencing immediately and which is renewable at the company's electionfor a further period of 30 years. All tax and royalty arrangements remainunchanged. It is the Company's intention to make application for additionallease areas at the appropriate time. From the Company's contact with the Ministry, it is apparent that there is agenuine interest to attract mining investment. The Ministry has soughtindependent advice from international authorities with the intention to enactnew mining legislation that will provide for an exploration and mininglegislative framework similar to that which is in effect elsewhere in Africa. All Legal actions and the proceedings before the Centre for Arbitration thatwere initiated by the Company are now in the process of being withdrawn. For Centamin Egypt Limited Josef El-RaghyManaging Director29 April 2005 Rule 5.3 Appendix 5B Mining exploration entity quarterly report Introduced 1/7/96. Origin : Appendix 8. Amended 1/7/98, 30/9/2001. Name of EntityCentamin Egypt Limited ABN Quarter ended ("current quarter")86 007 700 352 31 March 2005 Consolidated statement of cash flows Centamin Egypt LimitedPharaoh Gold Mines NL (100%)Viking Resources Ltd (100%)North African Resources (100%) ----------- -----------Cash flows related to operating activities Current Quarter Year to date $A'000 (9 months) $A'000 ----------- ----------- 1.1 Receipts from product sales and related - - debtors 1.2 Payments for (a) exploration and evaluation (486) (1,585) (b) development - (1) (c) production - - (d) administration (233) (465) 1.3 Dividends received - - 1.4 Interest and other items of a similar nature received 271 791 1.5 Interest and other costs of finance paid - - 1.6 Income taxes paid - - 1.7 Other (provide details if material) - - ----------- -----------Net Operating Cash Flows (448) (1,260)--------------------------------- ----------- ----------- Cash flows related to investing activities 1.8 Payment for purchases of (a) prospects - - (b) equity investments - - (c) other fixed assets (17) (116) 1.9 Proceeds from sale of (a) prospects - - (b) equity investments - - (c) other fixed assets 2 3 1.10 Loans to other entities *(Refer Note 1) (496) (1,692) 1.11 Loans repaid by other entities - - 1.12 Other (provide details if material) - - ----------- -----------Net investing cash flows (511) (1,805) ----------- -----------1.13 Total operating and investing cash flows (carried forward) (959) (3,065) ----------- ----------- 1.13 Total operating and investment cash flows (brought forward) (959) (3,065)--------------------------------- ----------- ----------- Cash flows related to financing activities 1.14 Proceeds from issues of shares, options, etc. 35 35 1.15 Proceeds from sale of forfeited shares - - 1.16 Proceeds from borrowings *(Refer Note 1) 496 1,692 1.17 Repayment of borrowings - - 1.18 Dividends paid - - 1.19 Other (provide details if material) - - ----------- -----------Net financing cash flows 531 1,727--------------------------------- ----------- ----------- Net increase (decrease) in cash held (428) (1,338) 1.20 Cash at beginning of quarter/year to date 19,899 21,108 1.21 Exchange rate adjustments to item 1.20 (57) (356) ----------- -----------1.22 Cash at end of quarter 19,414 19,414--------------------------------- ----------- ----------- *Note 1 - From the March 2004 Quarter onwards, the funding of explorationexpenditure by the Holding Company to its subsidiaries will be disclosed as aninter-entity loan under sections 1.10 and 1.16 respectively. -----------Payments to directors of the entity and associates of the Current quarterdirectorsPayments to related entities of the entity and associates of $A'000the related entities ----------- 1.23 Aggregate amount of payments to the parties included in item 1.2 199,958 ----------- 1.24 Aggregate amount of loans to the parties included in item - 1.10 ------------------------------------------------------ 1.25 Explanation necessary for an understanding of the transactions (a) Mr S El-Raghy, a director, and an employee of Pharaoh Gold Mines NL received salary for the quarter amounting to $90,333. (b) Mr J El-Raghy, a director and employee of the Company received salary and superannuation for the quarter amounting to $58,053. (c) Mr S El-Raghy & Mr J El-Raghy are also Directors and Shareholders of El-Raghy Kriewaldt Pty Ltd ("El-Raghy Kriewaldt"). El-Raghy Kriewaldt provides office premises to the Company. All dealings with El-Raghy Kriewaldt are in the ordinary course of business and on normal terms and conditions. Rent paid to El-Raghy Kriewaldt during the current quarter amounted to $17,335. (d) Directors fees and superannuation paid during the quarter amounted to $19,875. (e) Services Dr T Elder, a non-executive director provides additional consulting services to the Company. All dealings with Dr T Elder are in the ordinary course of business and on normal terms and conditions. Consulting fees paid to Dr T Elder during the current quarter amounted to $6,102. (f) Insurance Mr C Cowden, a non-executive director, is also a director and shareholder of Cowden Limited. Cowden Limited provides insurance broking services to the Company. All dealings with Cowden Limited are in the ordinary course of business and on normal terms and conditions. Insurance premiums paid to Cowden Limited during the current quarter amounted to $8,260. Non-cash financing and investing activities 2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows - 2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest - Financing facilities availableAdd notes as necessary fro an understanding of the position. ----------- ----------- Amount available Amount used $A'000 $A'000 ----------- ----------- 3.1 Loan facilities - - ----------- ----------- 3.2 Credit standby arrangements - ---------------------------------- ----------- ----------- Estimated cash outflows for next quarter $A'000 ----------- 4.1 Exploration and evaluation 1,000 ----------- 4.2 Development 30------------------------------------------- ----------- Total 1,030 ------------------------------------------- ----------- Reconciliation of Cash--------------------------------- ----------- -----------Reconciliation of cash at the end of the Current quarter Previous quarterquarter (as shown in the consolidatedstatement of cash flows) to the relateditems in the accounts is as follows. $A'000 $A'000 --------------------------------- ----------- ----------- 5.1 Cash on hand and at bank 286 305 ----------- ----------- 5.2 Deposits at call 380 440 ----------- ----------- 5.3 Bank overdraft - - ----------- ----------- 5.4 Term deposits 18,748 19,154--------------------------------- ----------- ----------- Total: cash at end of quarter (item 1.22) 19,414 19,899--------------------------------- ----------- ----------- Changes in interests in mining tenements ---------- --------------- --------- --------- Tenement Nature of Interest at Interest at reference interest beginning end of (note(2)) of quarter quarter ---------- --------------- --------- ---------6.1 Interest in mining tenements relinquished, reduced or lapsed ---------- --------------- --------- --------- 6.2 Interests in mining tenements acquired or increased ---------- --------------- --------- --------- Issued and quoted securities at end of current quarterDescription includes rate of interest and any redemption or conversion rightstogether with prices and dates.------------------ ---------- ---------- ---------- ---------- Total number Number quoted Issue price Amount paid security up per security (see note 3) (see note 3) (cents) (cents)------------------ ---------- ---------- ---------- ----------7.1 Preference +securities (description)------------------ ---------- ---------- ---------- ----------7.2 Changes during quarter (a) increases through issues (b) decreases through returns of capital, buy-backs, redemptions------------------ ---------- ---------- ---------- ----------7.3 +Ordinary securities 502,060,369 502,060,369------------------ ---------- ---------- ---------- ----------7.4 Changes during quarter 150,000 150,000 (a) increases through options exercise (b) decreases through returns of capital, buy-backs ---------- ---------- ---------- ----------------------------7.5 +Convertible debt securities (description)------------------ ---------- ---------- ---------- ----------7.6 Changes during quarter (a) increases through issues (b) decreases through securities matured, converted------------------ ---------- ---------- ---------- ----------7.7 Options Employee Option Exercise price Expiry date (description Plan 2002 and conversion 250,000 Nil 29.00 cents 11/11/2005 factor) 1,010,000 Nil 23.10 cents 12/11/2006 130,000 Nil 23.10 cents 17/11/2006 750,000 Nil 35.49 cents 15/12/2006 775,000 Nil 28.04 cents 04/02/2008 410,000 Nil 28.04 cents 17/02/2008 ---------- ---------- ---------- ----------7.8 Issued during quarter 775,000 Nil 28.04 cents 04/02/2008 410,000 Nil 28.04 cents 17/02/2008 ---------- ---------- ---------- ----------7.9 Exercised during quarter 150,000 150,000 23.10 cents 12/11/2006 ---------- ---------- ---------- ----------7.10 Expired/ lapsed during ---------- ---------- ---------- ---------- quarter------------------7.11 Debentures (totals only)------------------ ---------- ----------7.12 Unsecured notes (totals only)------------------ ---------- ---------- Compliance statement 1. This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 4). 2. This statement does give a true and fair view of the matters disclosed. Sign here: Company Secretary Date: 29 April 2005 Print name: Heidi Brown 1. The quarterly report provides a basis for informing the market how the entity's activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report. 2. The "Nature of interest" (items 6.1 and 6.2) includes options in respect of interests in mining tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2. 3. Issued and quoted securities The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities. 4. The definitions in, and provisions of, AASB 1022: Accounting for Extractive Industries and AASB 1026: Statement of Cash Flows apply to this report. 5. Accounting Standards ASX will accept, for example, the use of International Accounting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Centamin PLC