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KDR Karelian Diamond Resources Plc

2.15
0.00 (0.00%)
18 Mar 2024 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Karelian Diamond Resources Plc LSE:KDR London Ordinary Share IE00BD09HK61 ORD EUR0.00025 (CDI)
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.00% 2.15 2.00 2.30 2.15 2.15 2.15 92,767 08:00:00
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
Misc Nonmtl Minrls, Ex Fuels 10k -291k 0.0000 N/A 156.98M

Karelian Diamond Res. Final Results

17/11/2016 7:00am

UK Regulatory


 
TIDMKDR 
 
The information contained within this announcement is deemed by the Company to 
constitute inside information as stipulated under the Market Abuse Regulations 
                          (EU) No. 596/2014 ("MAR"). 
 
                                                               17 November 2016 
 
                        Karelian Diamond Resources Plc 
 
                           ("KDR" or the "Company") 
 
                 Final results for the year ended 31 May 2016 
 
                              Excellent Progress 
 
Karelian (AIM: KDR, ESM: KDRI), the diamond exploration company focused on 
Finland, announces its results for the year ended 31 May 2016, a year in which 
highly encouraging progress has been made towards achieving its objective to 
discover, or acquire, and develop diamond deposits in Finland. 
 
Highlights: 
 
  * Acquisition of Lahtojoki Diamond Deposit 
 
  * Mining Permit for Lahtojoki Diamond Deposit Granted 
 
  * Potential to become Profitable Open Pit Diamond Mine 
 
  * Riihivaarä  Kimberlite Body discovered by Company likely to be 
    Diamondiferous 
 
  * Rio Tinto Agreement Extended to 2020 
 
Professor Richard Conroy, Chairman, stated: 
 
"I am delighted that the Company has made such excellent progress during the 
year both by the acquisition of the Lahtojoki diamond deposit which could 
 become the first diamond mine in Europe (outside Russia) and by the 
exploration results. The diamond potential in the Lahtojoki area has been 
enhanced, post the acquisition, and mineral analysis of the Riihivaarä 
indicator minerals increases the likelihood  that the Riihivaarä kimberlite 
body is likely to be diamondiferous." 
 
Further Information: 
 
Professor Richard Conroy, Chairman, Karelian Diamond           Tel: +353-1-661-8958 
Resources plc 
 
David Hart / Nick Harriss/ James Thomas, Allenby               Tel: +44-20-33285656 
Capital  Limited (Nomad) 
 
Ger Heffernan, IBI Corporate Finance Limited (ESM              Tel: +353-7662-34800 
Adviser) 
 
Jon Belliss/ Elliot Hance Beaufort Securities Plc              Tel: 
(Broker)                                             +44-20-7382-8300 
 
Michael Padley Lothbury Financial Services Limited             Tel: 
                                                     +44-20-3290-0707 
 
Don Hall, Hall Communications                                  Tel: +353-1-660-9377 
 
http://www.kareliandiamondresources.com 
 
Chairman's Statement 
 
I have pleasure in presenting your Company's Annual Report and Financial 
Statements for the financial year ended 31 May 2016.  The year has been an 
excellent one for your Company.  The Lahtojoki diamond deposit was acquired, 
together with a Mining Permit from the Finnish authorities for its development 
and your Company's diamond exploration programme showed further success with 
mineral analysis indicating that the Riihivaarä kimberlite body discovered by 
your Company is likely to be diamondiferous. 
 
The Lahtojoki diamond deposit and your Company's diamond exploration programme 
are both located in the Karelian Craton in Finland.  The diamond prospectivity 
of this Craton, which lies across Northern Finland and Russia, has been 
demonstrated by the discovery and development of the world class Lomonosova and 
Grib Pipe diamond deposits in the Russian sector of the Craton.  Your Company's 
objective is to discover, or acquire, and develop diamond deposits in the 
Finnish sector of the Craton. 
 
ACQUISITION OF THE LAHTOJOKI DIAMOND ORE BODY IN CENTRAL FINLAND 
 
The Lahtojoki diamond ore body was acquired from A & G Mining Oy ("AGM"), a 
private Finnish company.  The ore body is situated in the Kuopio - Kaavi region 
in Finland.  The location is highly favourable for development with excellent 
infrastructure including good road access and power distribution and local 
technical and logistics availability. 
 
An extensive database of information has been received from AGM, including 
drilling and bulk sampling reports, consultant reports and other technical 
reports.  This has enabled Karelian to expedite its overall assessment of 
Lahtojoki diamond deposit and to commence planning a development programme 
including targeting locations for any further drilling or bulk sampling that 
may be required. 
 
The Lahtojoki diamond ore body has, we believe, the potential to become a 
profitable open pit diamond mine.  As well as acquiring the property, we have 
received a Mining Permit for its development from the Finnish Safety and 
Chemical Agency ("TUKES"). 
 
The acquisition of the Lahtojoki diamond ore body, together with a Mining 
Permit, allows the Company, subject to any relevant environmental assessments 
or requirements, to proceed through to full development of the property as a 
mine. 
 
Under the terms of the acquisition a royalty of 1% is payable to AGM either in 
diamonds or cash on cumulative diamond production above 2.5 million carats, in 
addition to a purchase price of EUR150,000 (comprising an initial purchase price 
of EUR50,000 plus a further EUR100,000 after twenty four (24) months unless 
Karelian decides not to develop the project). 
 
Finland is recognised by the prestigious Fraser Institute as one of the most 
attractive jurisdictions in the world for mining investment and the mine would 
be the first diamond mine in Europe (outside Russia). 
 
ADDITIONAL POTENTIAL AT LAHTOJOKI 
 
As well as the Lahtojoki diamond ore body, a series of high interest 
geophysical and kimberlite indicator mineral anomalies have been identified in 
the immediate area. The anomalies were outlined following an analysis by your 
Company of the extensive geophysical data acquired from AGM, including image 
processed magnetic and electromagnetic data together with compilation maps of 
previous kimberlite indicator mineral till sampling information in the area. 
 
The presence of additional diamond resource potential in the area adjacent to 
Lahtojoki would, if confirmed, further add to the financial and technical 
attractiveness of the Lahtojoki diamond deposit. 
 
RIIHIVAARÄ - NEW KIMBERLITE BODY 
 
In the Kuhmo region of Finland where, at Seitaperä, your Company has defined 
the largest (at 6.9 hectares) diamondiferous kimberlite pipe discovered to date 
in Finland, your Company has, at Riihivaarä, discovered a new kimberlite body. 
 
Indicator mineral analysis indicates that the Riihivaarä kimberlite is likely 
to be diamondiferous.  The geotherm is prospective for diamonds and the 
kimberlite has been sampled to a modelled depth of greater than 200km, within 
the diamond stability field. 
 
During the year, 355 garnet analyses on samples provided by Karelian from 
Riihivaarä were carried out by Rio Tinto in their Melbourne laboratories in 
Australia.  The samples provided were from outcrop and till.  The garnet 
analysis comprised kimberlite indicator methods of MLA (Mineral Liberation 
Analysis) screening followed by laser-ablation ICP-MS (Inductively Coupled 
Plasma - Mass Spectrometry) analysis. 
 
Lherzolitic ("G9") garnets were dominant but scattered high interest 
Harzburgitic ("G10") garnets were also present.  Some evidence of metasomatism 
was associated with the G9 and G10 populations.  Ecologitic garnets, with 
restricted range in chemical composition of potential diamond-association, were 
reported from the outcrop sample. 
 
Garnet thermobarometry was also calculated to estimate the geotherm in the 
Riihivaarä area. The results indicated that the geotherm is prospective for 
diamonds.  The geotherm in Riihivaarä is similar to that in the Kaavi-Kuopio 
kimberlite field in Finland where your Company has acquired the Lahtojoki 
diamond deposit, and to kimberlite fields in Southern Africa. 
 
AGREEMENT WITH RIO TINTO 
 
Your Company has a Confidentiality Agreement (with Back in Rights) with Rio 
Tinto Mining and Exploration Limited ("Rio Tinto").  I am delighted that this 
agreement with Rio Tinto has been extended to 2020. 
 
Under the agreement, Rio Tinto discloses to Karelian confidential information 
and physical geological samples relating to exploration in Finland for the 
purpose of Karelian considering that information in relations to Karelian's 
potential and existing exploration programmes in Finland. 
 
In consideration of Rio Tinto disclosing the confidential information to it, 
Karelian has agreed that Rio Tinto will have the option to earn a 51 per cent 
interest in any project identified by Karelian in Finland by Rio Tinto paying 
the direct cash expenditures incurred in developing the project. 
 
FINANCE 
 
The loss after taxation for the year ended 31 May 2016 was EUR268,334 (2015: EUR 
121,551) and the net assets as at 31 May 2016 were EUR8,461,373 (2015: EUR 
8,330,073). 
 
On 17 May 2016, the Company raised GBP250,000 through the issue of 31,250,000 
shares at 0.8p each. 
 
AUDITORS 
 
I would like to take this opportunity to thank the partners and staff of 
Deloitte for their services to your Company during the course of the financial 
year. 
 
DIRECTORS 
 
I would like to express my deep appreciation of support and dedication of all 
the directors, consultants and staff, which has made possible the continued 
progress and success, which your Company has achieved. 
 
FUTURE OUTLOOK 
 
Your Company has continued to make excellent progress in what is now a combined 
diamond exploration and development programme.  We look forward to building 
rapidly on this success in the coming year. 
 
Professor Richard Conroy 
 
Chairman 
 
16 November 2016 
 
INCOME STATEMENT 
 
FOR THE YEARED 31 MAY 2016 
 
                                                             2016          2015 
 
                                                                EUR             EUR 
 
Operating expenses                                      (268,504)     (124,488) 
 
Finance income - bank interest receivable                     170       2,937 
 
Finance costs - Interest on shareholder loan                    -             - 
 
Loss Before Taxation                                     (268,334     (121,551) 
 
Taxation                                                        -             - 
 
Loss RETAINED  for the year                             (268,334)     (121,551) 
 
Loss per ordinary share                                  (0.0008)     (EUR0.0004) 
 
STATEMENT OF FINANCIAL POSITION 
 
AS AT 31 MAY 2016 
 
                                                             2016          2015 
 
                                                                EUR             EUR 
 
Assets 
 
Non-current Assets 
 
Intangible assets                                       8,703,353     8,029,132 
 
Investment in subsidiaries                                      4             4 
 
Property, plant and equipment                                   -             - 
 
                                                        8,703,357     8,029,136 
 
Current Assets 
 
Trade and other receivables                               211,368       402,122 
 
Cash and cash equivalents                                 341,737       474,026 
 
                                                          553,105       876,148 
 
Total assets                                            9,256,462     8,905,284 
 
Equity and Liabilities 
 
Capital and reserves 
 
Called up share capital                                 3,177,850     2,865,350 
 
Share premium                                           6,791,581     6,786,177 
 
Share based payments reserve                              665,127       570,256 
 
Retained earnings                                     (2,173,185)   (1,891,710) 
 
Total equity                                            8,461,373     8,330,073 
 
Non-current liabilities 
 
Financial liabilities                                     309,589       309,589 
 
Total non-current liabilities                             309,589       309,589 
 
Current liabilities 
 
Trade and other payables                                  485,500       265,622 
 
Total Current Liabilities                                 485,500       265,622 
 
Total Liabilities                                         795,089       575,211 
 
Total Equity and Liabilities                            9,256,462     8,905,284 
 
Cash Flow Statement 
 
For the Year Ended 31 May 2016 
 
                                                             2016          2015 
 
                                                                EUR             EUR 
 
Cash generated by/(used in) operations                    160,429     (971,118) 
 
Net cash generated by/(used in) operating                 160,429     (971,118) 
activities 
 
Cash flows from investing activities 
 
Investment in exploration and evaluation assets         (597,651)     (662,834) 
 
Net cash used in investing activities                   (597,651)     (662,834) 
 
Cash flows from financing activities 
 
Issue of share capital (net of share issue                317,904             - 
expenses)                                                (13,141)             - 
Share issue costs 
 
Interest received                                             170         2,937 
 
Net cash generated from financing activities              304,933         2,937 
 
Increase/(decrease) in cash and cash equivalents        (132,289)   (1,631,015) 
 
Cash and cash equivalents at beginning of year            474,028     2,105,041 
 
Cash and cash equivalents at end of year                  341,737       474,026 
 
Notes to the Financial Statements 
 
1. Publication of non-statutory accounts 
 
The financial information set out in this preliminary announcement is 
abbreviated from the accounts as defined in Section 1119 of the Companies Act 
2014. 
 
The financial information for the year ended 31 May 2016 have been extracted 
from the Company's financial statements to that date which have received an 
unqualified auditors' report but have not yet been delivered to the Registrar 
of Companies. 
 
2. Earnings per share 
 
The calculation of the loss per share of EUR0.0008 (2015 - EUR0.0004) is based on 
the loss for the financial year of EUR268,334 (2015 - EUR121,551) and the weighted 
average number of ordinary shares in issue on a basic and fully diluted basis 
during the year of 287,819,281 (2015 - 286,535,034). 
 
The effect of share options and warrants is anti-dilutive. 
 
3. Dividends 
 
No dividends were paid or are proposed in respect of the year ended 31 May 
2016. 
 
4. Copies of Accounts 
 
A copy of the Annual Report and Financial Statements will be available on the 
Company's website www.kareliandiamondresources.com and will be available from 
the Company's registered office, 9 Merrion Square North, Dublin 2.  It will 
also be forwarded to shareholders who requested a hard copy. Notice of the 
Annual General Meeting to be held on 9 December 2016 and Proxy Form were sent 
to shareholders on 16 November 2016 and are also available on the website. 
 
 
 
END 
 

(END) Dow Jones Newswires

November 17, 2016 02:00 ET (07:00 GMT)

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