RNS Number:7648V
Tertiary Minerals PLC
16 December 2005
TERTIARY MINERALS PLC
FINAL RESULTS FOR THE YEAR ENDED 30 SEPTEMBER 2005
Chairman's Statement
During 2005 your Company's efforts to enhance shareholder value were rewarded
with the recent announcement of a US$7 million funding agreement with a Saudi
Consortium for the completion of feasibility studies at our Ghurayyah
tantalum-niobium project.
Ghurayyah Project Funding
This agreement demonstrates the underlying value of Ghurayyah and it is a
significant milestone in the development of this major project. The financing
included a placing of shares at a significant premium to the then share price
and allows the Company to retain a 50% interest in the project. It is hoped
that, at the development stage, when bank financing is sought, the favourable
local financing environment could reduce Tertiary's equity requirement to just
over 6% of the overall $US100 million capital cost that was estimated for the
project in the 2003 Scoping Study.
The agreement to fund Ghurayyah comes at a time when the tantalum market has
substantially recovered from the volatility of the year 2000 'electronics
bubble'. Demand has returned to 1999 levels and is believed to be growing at
rates in excess of 5%. On the supply side, concerns remain over future raw
material supplies. The US Defence Logistics stockpile is expected to be depleted
in the near future and the world's leading supplier of tantalum, Sons of Gwalia,
remains in administration.
Sunrise Diamonds plc
Another notable achievement during the year was the re-organisation of the
Company's diamond interests into a separate company, Sunrise Diamonds plc
("Sunrise"), which was admitted to trading on AIM in June 2005.
This was achieved through an entitlement issue of shares to all Tertiary
shareholders and those who took advantage of this opportunity have seen their
Sunrise shares continuing to trade at a premium to their subscription price.
Sunrise has built on Tertiary's initial work with the announcement of further
kimberlite discoveries, one of which contains micro-diamonds. With a direct 26%
equity interest, Tertiary remains the largest shareholder in Sunrise whose
exploration portfolio has recently been enhanced by the acquisition of BHP
Billiton's Finland diamond exploration database, estimated to have a replacement
value of over US$10 million.
Exploration Projects
Turning to our other projects, it was pleasing to report further positive gold
drill-intersections on the Vanha lode at our Kaaresselka gold project in
Finland where further follow up exploration is warranted. Exploration on the
Nottrask nickel project in Sweden, and the Pitkajarvi gold-copper project
in Finland yielded less favourable results and these projects have now been
relinquished.
Drilling of a large iron-oxide related copper-cobalt-gold mineralised system at
Ahmavuoma in northern Sweden was deferred in 2005 but is budgeted for 2006.
Annual Results
The Group reported a loss of #415,803 for the year (2004: #861,081).
In Conclusion
The Company's management has been working hard to advance the Company's major
projects during the year. These efforts have culminated in the listing of
Sunrise Diamonds and the recent announcement of value-adding agreements on
Ghurayyah (and, in Sunrise Diamonds, with BHP-Billiton) and I am pleased to see
a turnaround in the Company's share price. We look forward to working with our
new partners to bring Ghurayyah to production and to building on the Company's
firm foundations.
Patrick L. Cheetham
Executive Chairman
15 December 2005
Further Information:
Patrick Cheetham, Tertiary Minerals Plc. Tel: +44 (0)1625-626203.
Ron Marshman/John Greenhalgh, City of London PR Ltd. Tel: +44 (0)20-7628-5518
Web-site: www.tertiaryminerals.com
Consolidated Profit and Loss Account
for the year ended 30th September 2005
2005 2004
# #
Exploration costs written off 294,088 636,714
Administrative expenses 310,269 245,030
_________ ________
Operating loss (604,357) (881,744)
Share of loss of associate (44,892) -
Profit on disposal of intangible asset 75,100 -
Profit on sale of interest in subsidiary 134,371 -
Interest receivable 22,579 20,663
Share of interest receivable of associate 1,396 -
Loss on ordinary activities before taxation (415,803) (861,081)
_______ _______
Tax on profit on ordinary activities - -
Loss for the financial year (415,803) (861,081)
======= =======
Loss per share - basic (pence) (0.93) (2.30)
==== ====
All amounts relate to continuing activities.
Balance Sheets
for the year ended 30th September 2005
Group Group Company Company
2005 2004 2005 2004
# # # #
Fixed assets
Intangible assets 943,219 959,260 - -
Tangible assets 5,676 5,036 - -
Investment in subsidiary - - 224,889 224,889
Investment in associate - - 150,000 -
Share of net assets of associate 157,350 - - -
_________ _______ _______ _______
1,106,245 964,296 374,889 224,889
========= ======= ======= =======
Current assets
Debtors 65,705 70,583 2,334,206 2,051,199
Cash at bank and in hand 435,969 557,666 424,940 554,239
_______ _______ _________ _________
501,674 628,249 2,759,146 2,605,438
Creditors: amounts falling due within 37,916 62,448 25,074 26,584
one year _______ _______ _________ _________
Net current assets 463,758 565,801 2,734,072 2,578,854
_______ _______ _________ _________
Total assets less current liabilities 1,570,003 1,530,097 3,108,961 2,803,743
========= ========= ========= =========
Capital and reserves
Called up share capital 464,210 404,210 464,210 404,210
Share premium account 3,376,862 2,961,665 3,376,862 2,961,665
Merger reserve 131,096 131,096 131,096 131,096
Profit and loss account (2,402,165) (1,966,874) (863,207) (693,228)
_________ _________ ________ _________
Shareholders funds 1,570,003 1,530,097 3,108,961 2,803,743
========== ========== ========= =========
Consolidated Cash Flow Statement
for the year ended 30th September 2005
2005 2004
# #
Net cash outflow from operating activities (303,749) (289,450)
Returns on investment and servicing of finance
Interest received 19,898 20,663
_________ ________
Net cash outflow from operating activities after (283,851) (268,787)
returns on investments and servicing of finance _________ ________
Capital expenditure and financial investment
Purchase of intangible fixed assets (304,658) (397,630)
Purchase of tangible fixed assets (3,675) (5,021)
Receipts from sale of intangible fixed assets 150,000 -
_________ ________
Net cash outflow from capital expenditure and (158,333) (402,651)
financial investment _________ ________
Acquisitions and disposals
Payments to acquire investment in associate (150,000) -
________ ________
Net cash outflow from acquisitions and disposals (150,000) -
________ ________
Financing
Issue of share capital (net of expenses) 475,197 996,687
Exchange differences (4,710) 4,912
_______ _________
Net cash inflow from financing 470,487 1,001,599
________ _________
(Decrease)/Increase in cash (121,697) 330,161
======= =========
Consolidated Statement of Total Recognised Gains and Losses
for the year ended 30th September 2005
2005 2004
# #
Statement of total recognised gains and losses
Loss for the financial year (415,803) (861,081)
Foreign exchange translation differences on foreign (19,488) (7,830)
currency net investments in subsidiaries
Total recognised losses since last accounts (435,291) (868,911)
======= =======
Notes:
1 Publication of Non-Statutory Accounts
The financial information set out in this announcement does not constitute the
Company's Statutory Accounts for the period ended 30 September 2005 or 2004. The
financial information for 2004 is derived from the Statutory Accounts for 2004,
which have been delivered to the Registrar of Companies. The auditors have
reported on the 2004 and 2005 accounts; their reports were unqualified and did
not contain statements under section 237 of the Companies Act 1985. The
Statutory Accounts for 2005 will be delivered to the Registrar of Companies
following the Company's Annual General Meeting.
2. Share capital 2005 2005 2004 2004
No. # No. #
Authorised
Ordinary shares of 1p each 150,000,000 1,500,000 150,000,000 1,500,000
___________ _________ ___________ _________
150,000,000 1,500,000 150,000,000 1,500,000
=========== ========= =========== =========
Allotted, called up and fully paid
Ordinary shares of 1p each 46,421,093 464,210 40,421,093 404,210
__________ _______ __________ _______
46,421,093 464,210 40,421,093 404,210
========== ======= ========= =======
During the year a placement was made of 6,000,000 new 1 penny ordinary shares
for a total consideration of #480,000.
3. Warrants granted
Unexercised warrants Issue dates Exercise price Number Expiry Dates
10/08/05 6.5p 2,100,000 10/08/08
Warrants are issued for nil consideration and are exercisable as disclosed
above. Warrants are exchangeable on a one for one basis for each ordinary share
of 1 penny at the exercise price on the date of conversion.
4. Reconciliation of movements in shareholders' funds
Group Group Company Company
2005 2004 2005 2004
# # # #
Loss for the financial year (415,803) (861,081) (169,979) (170,357)
Exchange differences (19,488) (7,830) - (65)
Shares issued during the year net 475,197 996,687 475,197 996,687
of issue costs
________ ________ ________ _________
Increase in shareholders' funds 39,906 127,776 305,218 826,265
======== ======== ======== =========
Opening shareholders' funds 1,530,097 1,402,321 2,803,743 1,977,478
========= ========= ========= =========
Closing shareholders' funds 1,570,003 1,530,097 3,108,961 2,803,743
========= ========= ========= =========
5. Reconciliation of operating loss to net cash outflow from operating
activities
2005 2004
# #
Operating loss (604,357) (881,744)
Depreciation and loss on disposal of fixed assets 3,035 3,864
Intangible fixed assets written off 305,921 606,024
Disposal of intangible fixed assets (74,900) -
(Increase)/Decrease in debtors 4,878 (42,191)
Increase/(Decrease) in creditors (24,532) 24,597
Share of operating loss of subsidiary prior to it becoming 86,206 -
an associate ________ ________
Net cash outflow from operating (303,749) (289,450)
activities ======= ========
6. Reconciliation of cash flow to movement in net funds
Cash at bank Total
and in hand
# #
At 30th September 2005 435,969 435,969
At 1 October 2004 557,666 557,666
_______ _______
Decrease in cash in the year (121,697) (121,697)
Cash outflow from decrease in funds and lease financing -
Cash inflow from decrease in liquid resources -
________
Change in net funds resulting from cash flows (121,697)
New finance leases -
_______
Movement in net funds in the year (121,697)
Net funds at 1 October 2004 557,666
_______
Net funds at 30th September 2005 435,969
=======
7. Post balance sheet event
On 13 December 2005, as a result of agreement reached with two Saudi companies
on the Ghurayyah project, Tertiary Minerals issued 5,000,000 ordinary shares of
one pence each, at a price of 10p per share, to raise #500,000 before expenses.
8. Dividend
No dividend is proposed
9. Annual Report
The Company's 2005 Annual Report will be published and sent to shareholders in
due course and copies will be available to the public, free of charge, from the
Registered Office of the Company or from Tertiary Minerals plc, Sunrise House,
Hulley Road, Macclesfield, Cheshire, SK10 2LP for at least one month from the date
of publication.
This information is provided by RNS
The company news service from the London Stock Exchange
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