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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Minmet | LSE:MNT | London | Ordinary Share | IE00B1KDSD45 | ORD EUR0.01 |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 1.75 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
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Minmet plc
MINMET PLC ("MINMET" or the "Company")
Interim Results for 6 months ended 30 June 2008
CHAIRMAN'S STATEMENT
John Liwosz and I were appointed to the Board of Minmet in July 2008. Our
appointment followed a protracted period of unrest and dissatisfaction by a
number of shareholders who were clearly unhappy with the strategy being
implemented by the former Board.
Shareholders had questioned investments made by the Company in the Tucumcari
Project ("Tucumcari") in New Mexico and in an oil and gas exploration project in
Alaska ("Alaska"). A series of extraordinary general meetings ("EGMs") during
the first half of 2008 did not resolve the problems and all the previous
Directors resigned on 16 July 2008 following the appointment of John Liwosz and
myself as directors of the Company. Our appointments were subsequently ratified
by the members of the Company at the Annual General Meeting held in Dublin on 29
August 2008.
We are, as a Board, committed to developing Minmet and taking it forward with a
sensible strategy that will accrete the most value for shareholders from what
has been a complicated and difficult situation. Since taking office we have
reviewed the Company's strategy, including the investments that Minmet holds,
the majority of which relate to the Tucumcari Project, and to a lesser extent,
to Alaska and to other assets which are in the form of tradable equities in
quoted companies. However, following the well publicised dissatisfaction and
issues between shareholders and the former Board of the Company, our view is
that it is neither prudent nor sensible that Minmet continues to try to finance
and develop these projects, given the risks to which Minmet would be exposed. In
addition, the difficulties in the capital markets have seen the value of the
listed tradable equities that Minmet holds decline significantly both during the
interim period and over the last two to three months. Accordingly, we have
concluded that the best way forward is that Minmet disengages from these
investments and realises as much value as possible from them in the
circumstances.
We have also held discussions with several third parties interested in making a
bid for the Company and on 29 August 2008 we announced that NRG Holdings
International Limited ("NRG") had made an approach to the Company regarding a
possible offer at 10 pence per share for the whole of the ordinary issued share
capital of the Company. The possible offer is conditional on due diligence, now
in progress, being conducted on the Company to the satisfaction of NRG.
Both John Liwosz and I would be happy to support any offer of 10p a share to
shareholders, which would represent a premium of 154% to the closing price on 18
August 2008, the day before the possible offer was announced by the Company. We
would support such an offer on the basis that it would be a pure cash offer and
we would point out that while there is significant potential value in Minmet's
assets, it will take considerable time, effort and resources with associated
risks to develop these. We expect to update shareholders and the market in
general as we proceed, but would reconfirm our intention to deliver maximum
value to all Minmet shareholders by adopting a flexible and transparent approach
to all our activities.
For the half year ended 30 June 2008, we are reporting a loss after tax of
US$5.6 million (2007: profit US$12.1 million). This incorporates a write down of
available for-sale investments of US$2.5 million (2007: nil) and of intangible
assets of US$0.5 (2007: nil). The write down in available-for-sale investments
reflects the significant fall in market prices on our investment holdings. The
write down on intangible assets relates to exploration assets in Brazil where we
have discontinued our operations.
During the first half year 2008, the Company had no operational activity having
sold the Björkdal gold mine in Sweden at the end of 2007. We have however
recorded income relating to our net sales royalty interest in gold production at
Björkdal of US$97,000, during the period. Administrative expenses were
US$2,634,000 (2007: US$1,471,000) reflecting increased costs associated with a
series of EGMs convened by the Company at the request of a number of dissentient
shareholders, referred to above and to increased costs associated with a much
larger executive board, and also some devaluation of the US Dollar relative to
Euro and Sterling. In the period to 30 June 2008 we reported interest earnings
of US$45,000 (2007: US$209,000) and a loss on disposal of investments of
US$87,000 (2007: profit US$13,096,000).
At 30 June 2008, intangible assets totalled US$23.5 million, an increase of
US$2.1 million over the value at 31 December 2007. The increase in value relates
to expenditure on the Tucumcari Project less the write down of the Brazilian
exploration assets.
Available-for-sale investments decreased in value during the period to US$2.2
million from US$8.9 million. This reflects disposal of shares valued at
US$1.5million (at 31 December 2007) in Gold-Ore Resources Limited and in
Horizonte Minerals plc together with the write down of the value of our
remaining investment holdings to current stock market prices.
Since 30 June 2008, we have sold our remaining investment in Horizonte Minerals
plc in order to generate cash to meet working capital requirements. Cash
balances at 30 June 2008 stood at USD0.8 million and further sales of
investments will be required to meet working capital needs. We continue to hold
investments in Gold-Ore Resources Limited and in GoldQuest Mining Corp. and will
consider disposing of these holdings pending receipt of suitable offers.
The directors of the Company also announce that Nabarro Wells & Co. Limited, the
Company's Nominated Adviser for the purposes of the AIM Rules for Companies
("AIM Rules"), has tendered its resignation as the Company's Nominated Adviser,
which will take effect from 20 October 2008.
The Directors believe that they are making good progress towards appointing a
new Nomad, and will update the market and shareholders in due course
Mike Neville
Executive Chairman and CEO 26 September 2008
MINMET PLC
CONSOLIDATED INCOME STATEMENT
FOR THE HALF YEAR ENDED 30 JUNE 2008
Unaudited Unaudited
half year half year Audited year
to 30 June to 30 June ended 31
2008 2007 December 2007
US$ '000 US$ '000 US$ '000
Continuing Operations
Revenue 97 6 11
Cost of sales - - -
------------ ------------ --------------
Gross profit 97 6 11
Investment revenue 45 209 405
Impairment of exploration and evaluation assets (504) - (1,428)
Impairment of available-for-sale investments (2,500) - -
Other gains and losses (87) 13,095 12,103
Administration expenses (2,634) (1,471) (3,534)
------------ ------------ --------------
Profit/ (Loss) before tax (5,583) 11,839 7,557
Income tax expense - - -
------------ ------------ --------------
Profit/ (Loss) for the year from continuing
operations (5,583) 11,839 7,557
Discontinued operation
(Loss)/ Profit after tax for the period from a
discontinued operation - 308 (1,636)
------------ ------------ --------------
PROFIT/ (LOSS) FOR THE PERIOD (5,583) 12,147 5,921
============ ============ ==============
Attributable to:
Equity holders of the parent (5,583) 12,147 5,921
Earnings per share
Basic, for profit/(loss) for the year attributable
to ordinary equity holders of the parent (cents per
share) (6.05) 13.67 6.70
Diluted for profit/(loss) for the year attributable
to ordinary equity holders of the parent (cents per
share) (5.80) 13.53 6.38
Earnings per share for continuing operations
Basic, for profit/(loss) for the year attributable
to ordinary equity holders of the parent (cents per
share) (6.05) 13.67 8.55
Diluted for profit/(loss) for the year attributable
to ordinary equity holders of the parent (cents per
share) (5.80) 13.53 8.15
MINMET PLC
CONSOLIDATED BALANCE SHEET
AS AT 30 JUNE 2008
Unaudited 30 Unaudited 30 Audited 31
June 2008 June 2007 December 2007
US$ '000 US$ '000 US$ '000
ASSETS
Non-current assets
Property, plant and equipment 5 4,800 10
Intangible assets 23,469 12,612 21,305
------------ ------------ --------------
23,474 17,412 21,315
------------ ------------ --------------
Current Assets
Available-for-sale investments 2,217 15,106 8,998
Inventories - 1,107 -
Trade and other receivables 143 1,415 12
Cash and cash equivalents 779 16,158 3,626
------------ ------------ --------------
3,139 33,786 12,636
------------ ------------ --------------
TOTAL ASSETS 26,613 51,198 33,951
============ ============ ==============
EQUITY AND LIABILITIES
Equity attributable to equity holders of the parent
Issued capital 18,821 18,821 18,821
Share premium 43,276 43,276 43,276
Other reserves 1,848 6,444 4,622
Retained earnings (38,902) (26,512) (33,320)
------------ ------------ --------------
Total equity 25,043 42,029 33,399
------------ ------------ --------------
Non-current liabilities
Provisions - 1,927 -
------------ ------------ --------------
- 1,927 -
------------ ------------ --------------
Current liabilities
Trade and other payables 1,570 7,242 552
------------ ------------ --------------
1,570 7,242 552
------------ ------------ --------------
------------ ------------ --------------
TOTAL EQUITY AND LIABILITIES 26,613 51,198 33,951
============ ============ ==============
MINMET PLC
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE HALF YEAR ENDED 30 JUNE 2008
Attributable to equity holders of the parent
Issued Share Other Retained Total
capital premium reserves earnings equity
US$ '000 US$ '000 US$ '000 US$ '000 US$ '000
Balance at 1 January 2007 - audited 18,522 37,584 8,424 -39241 25,289
Changes in equity half year ended 30
June 2007 - unaudited
Issue of shares 299 5,692 - - 5,991
Retained loss for the year - - - 12,147 12,147
Unrealised gains on investments - - - - -
Gain transferred to the income statement
on sale of investment - - (2,024) - (2,024)
Translation adjustment - - 367 - 367
Share based payments - - 259 - 259
--------- --------- --------- ------------- ---------
Balance at 30 June 2007 -unaudited 18,821 43,276 7,026 (27,094) 42,029
========= ========= ========= ============= =========
Balance at 1 January 2008 - audited 18,821 43,276 4,622 (33,320) 33,399
Changes in equity half year ended 30
June 2008 - unaudited
Issue of shares - - - - -
Retained loss for the period - - - (5,583) (5,583)
Gain transferred to the income statement
on sale investment - - - - -
Unrealised losses on investments - - (2,812) - (2,812)
Translation adjustment - - 39 - 39
Share based payments - - - - -
---------------------------------------------------------
Balance at 30 June 2008 - unaudited 18,821 43,276 1,849 (38,903) 25,043
=========================================================
MINMET PLC
CONSOLIDATED CASH FLOW STATEMENT
FOR THE HALF YEAR ENDED 30 JUNE 2008
Unaudited Audited year
Unaudited half year ended 31
half year to to 30 June December
30 June 2008 2007 2007
US$ '000 US$ '000 US$ '000
Operating activities
Profit/ (Loss) before tax from continuing operations (5,583) 11,839 7,557
Loss/ (Profit) before tax from discontinued
operations - 308 (1,636)
------------- ------------ ------------
Profit/ (Loss) before tax from continuing operations (5,583) 12,147 5,921
Adjustment to reconcile profit/ (loss) before tax to net cash
flows
Depreciation 5 389 806
Share-based payment expense - 259 284
Loss on discontinued operations - - 3,009
Loss /(gain) on disposal of investments 85 (13,095) (11,939)
Net foreign exchange gain 12 - 168
Amortisation and impairment of intangible fixed
assets 504 44 1,522
Impairment of available-for-sale investments 2,500 - -
Interest income (45) (209) (405)
Interest expense - 91 205
Working capital adjustments:
Increase in trade and other receivables (131) 41 (1,444)
Increase in inventories - (91) (1,017)
Decrease in trade and other payables 1,018 993 5,729
Income tax paid - - -
------------ ------------ ------------
Net cash flows from operating activities (1,635) 569 2,839
------------ ------------ ------------
Investing activities
Purchase of property, plant and equipment - (2,117) (1,339)
Purchase of available-for-sale investments - (3,392) (4,931)
Proceeds from available-for-sale investments 1,155 20,043 20,773
Purchase of intangibles assets (2,400) (2,727) (17,522)
Proceeds from disposal of business - - (265)
Interest paid - (91) (205)
Interest received 45 209 405
------------ ------------ ------------
Net cash flows used in investing activities (1,200) 11,925 (3,084)
------------ ------------ ------------
Net increase (2,835) 12,494 (245)
Effect of exchange rate changes on cash held in
foreign currencies (12) 596 803
Cash and cash equivalents at beginning of period 3,626 3,068 3,068
------------ ------------ ------------
Cash and cash equivalents at end of period 779 16,158 3,626
============ ============ ============
MINMET PLC
NOTES TO INTERIM REPORT
1. Note of preparation
The interim financial report has been prepared in accordance with IAS 34 Interim
Financial Reporting and the accounting policies and methods of computation used
in the interim financial statements are consistent with those used in the Group
2007 Annual Report, which is available on the Minmet plc website at
www.minmet.ie
The interim financial statements have not been audited or reviewed by the
auditors of the Group pursuant to Auditing Practices board guidance on Review of
Interim Financial Information.
The Interim Report for the six months ended 30 June 2008 is unaudited and was
approved by the directors on 26 September 2008. The financial information set
out herein does not constitute statutory accounts within the meaning of section
149 of the Companies Act 1963.
Copies of this Interim Report are available to the public free of charge at 18
Fitzwilliam Place, Dublin 2, during normal office hours. A copy has also been
posted on the Company's web site at www.minmet.ie
2. Intangible assets
Brazil USA Total
US$'000 US$'000 US$'000
Exploration and evaluation assets
At 1 January 2007 1,660 - 1,660
Exchange movements (43) - (43)
Transfers in - 3,350 3,350
Additions 55 17,467 17,522
Impairment (1,184) - (1,184)
------- ------- -------
At 1 January 2008 2007 488 20,817 21,305
Additions 16 2,653 2,669
Impairment (504) - -
------- ------- -------
At 30 June 2008 - 23,469 23,469
======= ======= =======
3. Available-for-sale investments
US$'000
Quoted investments
At 1 January 2007 11,067
Revaluation 1,834
Additions 4,931
Disposals (8,834)
----------
At 1 January 2008 8,998
Revaluation (2,775)
Additions -
Disposals (1,506)
Impairment (2,500)
----------
At 30 June 2008 2,217
==========
The fair value of the quoted investments is determined by reference to the
published price quotations in an active market. The Group does not hold more
than 20% of the issued capital of any individual quoted investment and does not
exert a significant influence over any of the companies for which it maintains a
shareholding. Disposals during the period comprise sale of 1,575,000 shares in
Gold-Ore Resources Limited and 1,000,000 shares in Horizonte Minerals Limited.
MINMET PLC
NOTES TO INTERIM REPORT (continued)
4. Earnings per share and dividends
Basic earnings per ordinary share is calculated by dividing the Profit / (loss)
on ordinary activities after tax by the weighted average number of shares in
issue during the period. The dilution effect of outstanding share options is
taken into account in calculating the diluted earnings per ordinary share.
No dividends were proposed or paid in the 6 months ended 30 June 2008.
-Ends-
For further information, please contact:
Michael Neville, Chairman, Minmet plc +44 777 560 6175
Nabarro Wells & Co. Limited, Nominated Adviser +44 (0) 20 7634 4705
Hugh Oram
College Hill, Public Relations +44 (0) 20 7457 2020
Nick Elwes
Paddy Blewer
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