RNS Number:3022D
Tertiary Minerals PLC
22 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 the
six-month period ended 31 March 2006.
Review of Activities
The past six months has seen pleasing progress on the Company's projects
reflected in a strong share-price recovery.
In March 2006 a US$7 million joint venture funding agreement was signed with a
consortium of two Saudi companies for feasibility studies for the joint
development of the Company's world-class Ghurayyah tantalum-niobium-zircon-
(uranium-yttrium) deposit in Saudi Arabia. Preliminary feasibility studies are
now well underway and will focus on metallurgical testing, market studies and
process definition. In addition, a 22 hole, 2,000 metre drilling programme has
just been completed to collect a 50 tonne sample for follow up metallurgical
testwork and also to provide assay information for resource upgrading for that
part of the 400 million tonne Inferred Mineral Resource that will be mined in
the first years of the project. As a result of the joint venture funding
agreement the two Saudi Consortium members - A.H. Algosaibi & Bros. Co. and Al
Nahla Trading & Contracting Co. - have acquired significant shareholdings in the
Company and we look forward to working with them for the development of
Ghurayyah and in the consideration of other mining projects.
We are continuing to support our 24.6% held associated, AIM traded diamond
exploration company, Sunrise Diamonds plc ("Sunrise"), and in February 2006
participated in a small share placing to maintain our level of interest. Sunrise
has had an exciting first year as a public company and has built up a very
significant diamond exploration portfolio in Finland with 7 recent kimberlite
discoveries in the Kuusamo area backed up by exclusive access to BHP Billiton's
extensive US$10 million Finland exploration database.
Exploration work on our directly held Scandinavian exploration projects has been
at a "care and maintenance" level for the past 6 months whilst resources and
attention were focused on funding and feasibility activities at Ghurayyah, but
it is planned that work on the various gold and gold-copper exploration projects
in Sweden and Finland will be intensified during the rest of the year, as funds
allow.
The past six-months efforts have seen the Company's share price improve from a
low of less than 5p with a significant increase in trading volumes. I would like
to express my thanks to the Board for its support in bringing the Company
through this pivotal period.
Results
The Group loss for the six month period was #134,012. This includes a share of
the 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 of
the net assets of Sunrise Diamonds plc and interest receivable of #10,982.
Patrick L Cheetham 22 May 2006
Executive Chairman
For further information contact:
Tertiary Minerals plc Tel: +44 (0)1625 626203
Sunrise House Fax: +44 (0)1625 626204
Hulley Road
Macclesfield Website ; www.tertiaryminerasl.com
Cheshire. SK10 2LP. UK
Consolidated Profit and Loss Account
for 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
# # #
---------- --------- ---------
Exploration
costs written
off 11,307 137,328 294,088
Administrative
expenses 133,470 186,816 310,269
---------- --------- ---------
Operating loss (144,777) (324,144) (604,357)
Share of
operating loss
of associate (26,925) - (44,892)
Profit on disposal
of intangible
fixed assets - - 75,100
Profit arising
from the increase in
value of the Group's share
of the net assets of
Sunrise Diamonds
resulting from its recent
share issue 25,052 - 134,371
Interest
receivable 10,982 9,798 22,579
Share of interest
receivable of
associate 1,656 - 1,396
---------- --------- ---------
Loss on ordinary
activities
before
taxation (134,012) (314,346) (415,803)
Tax on profit on - - -
ordinary activities ---------- --------- ---------
Loss for the
financial
period (134,012) (314,346) (415,803)
---------- --------- ---------
Loss per share
- basic
(pence) (note
2) (0.27) (0.70) (0.93)
---------- --------- ---------
All amounts relate to continuing activities.
Consolidated Statement of Total Recognised Gains and Losses
for 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 the
period (134,012) (314,346) (415,803)
Foreign exchange
translation
differences
on foreign
currency net
investments 6,958 2,377 (19,488)
in ---------- --------- ---------
subsidiaries
Total recognised
losses since
last (127,054) (311,969) (435,291)
accounts ---------- --------- ---------
Consolidated Balance Sheet
as at 31 March 2006
As at 31 As at 31 As at 30
March 2006 March 2005 September
Unaudited Unaudited 2005
# # #
---------- --------- ---------
Fixed assets
Intangible Assets 1,090,212 1,100,368 943,219
Tangible Assets 11,535 6,338 5,676
Share of net assets of
associate 219,928 - 157,350
---------- --------- ---------
1,321,675 1,106,706 1,106,245
Current assets
Debtors 1,062,839 91,184 65,705
Cash 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 37,916
due within one year
---------- --------- ---------
Net current assets 1,536,802 586,622 463,758
---------- --------- ---------
---------- --------- ---------
Creditors: amounts falling 915,537 - -
due after more than one
year ---------- --------- ---------
Total assets less current
liabilities 1,942,940 1,693,328 1,570,003
---------- --------- ---------
Capital and reserves
Called up share capital 514,210 464,210 464,210
Share premium account 3,826,853 3,376,865 3,376,862
Merger reserve 131,096 131,096 131,096
Profit 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 Statement
for 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 cash
outflow from
operating (136,673) (148,393) (303,749)
activities (note 3)
Returns on
investments
and servicing 10,907 9,798 19,898
of finance
Capital expenditure
and financial (139,523) (237,531) (158,333)
investment
Acquisition
and 65,250 - (150,000)
disposals ---------- --------- ---------
Net cash outflow
before (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 the
period(note 4)
---------- --------- ---------
Notes to the Interim Statement
1. Basis of preparation
The interim statement has been prepared on the basis of the accounting policies
set out in the Company's financial statements for the year ended 30 September
2005. The financial information set out in this statement relating to the year
ended 30 September 2005 does not constitute statutory accounts for that period.
Full audited accounts in respect of that financial year (which received an
unqualified 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 of
Companies.
The Directors are satisfied that the Group has adequate resources to continue to
operate for the foreseeable future. For this reason they continue to adopt the
"going concern" basis for preparing the accounts. The interim statement has been
approved by the Directors and is unaudited.
Comparative figures for the six months ended 31 March 2005 are extracts from the
interim report for that period and are also unaudited.
2. Loss per share
Loss per share has been calculated on the attributable loss for the period and
the 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 the
period (#) (134,012) (314,347) (415,803)
Weighted
average shares 49,415,598 42,629,883 44,530,682
in issue (No.)
Basic loss per (0.27) (0.70) (0.93)
share ---------- --------- ---------
(pence)
The loss attributable to ordinary shareholders and the weighted average number
of ordinary shares used for the purpose of calculating diluted earnings per
share, are identical to those used to calculate the basic earnings per ordinary
share. This is because the exercise of share warrants would have the effect of
reducing the loss per ordinary share and is therefore not dilutive under the
terms of FRS 14.
3. Reconciliation of operating loss to net cash outflow from operating
activities
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
Intangible
fixed assets
written off - 95,616 305,921
Disposal of
fixed assets 2,673 - (74,900)
(Increase)/
Decrease in (17,080) (20,601) 4,878
debtors
Increase/
(Decrease) in 21,524 98,994 (24,532)
creditors
Share of operating
loss of subsidiary
prior to it - - 86,206
becoming an ---------- --------- ---------
associate
Net cash outflow
from operating
activities (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 cash
in the period
Opening net
funds 435,969 557,666 557,666
---------- --------- ---------
Closing net
funds 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 Diamonds
plc's net assets.
6. Interim report
Copies of this interim report will be sent to all shareholders and are available
from 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 Exchange
END
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