We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Register for Free to get streaming real-time quotes, interactive charts, live options flow, and more.
| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Oriel Res. | LSE:ORI | London | Ordinary Share | GB0034246743 | ORD 1P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 121.50 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
Hot Features
Premium
RNS Number:9194R
Oriel Resources PLC
29 September 2005
29th September 2005
Oriel Resources plc ("Oriel" or the "Company")
Interim Results
For the period ended 30th June 2005
Oriel Resources plc, the AIM and Toronto Stock Exchange listed chrome and nickel
developer and gold exploration and development company, today announces its
interim results for the six months ended 30th June 2005.
Highlights:
* Shares placed in January for proceeds of approximately #13.25m
* Successful listing on Toronto Stock Exchange in February 2005
* Sale agreement in February 2005 of Oriel's 14% interest in the
Varvarinskoye gold-copper project for $7.25m (# 3.9m) cash.
* Completed acquisitions of Voskhod chrome deposit in January 2005 and
Tokhtazan gold deposit in May 2005
* Positive preliminary assessment study (PAS) on Voskhod
Commenting, Dr Sergey Kurzin, Executive Chairman of Oriel Resources said:
"We continue to progress our projects. We announced the results of the PAS on
Voskhod in September which proved our confidence in this asset and allowed us to
approve the design and construction of an exploration decline to access the
chrome orebody as a first stage of the mine development. We also anticipate the
completion of the Shevchenko Definitive Feasibility Study in early 2006.
"We have substantial cash resources, strong local partnerships and local and
federal government support in the countries in which we operate, which provide a
sound platform for growth and make the management team confident that the
Company will deliver value for shareholders."
For further information please contact:
Dr Sergey V Kurzin, Executive Chairman, Oriel Resources plc
Tel: +44 (0) 20 7514 0590
Nick Clarke, Director of Mining, Oriel Resources plc
Tel: +44 (0) 20 7514 0590
Jonathon Brill/Billy Clegg, Financial Dynamics
Direct: + 44 (0) 20 7831 3113
Paul Lathigee, Vanguard Shareholder Solutions
Direct: + (1) 604 608 0824
Oriel
Chairman's Statement
Meeting the challenges over the past 18 months since Oriel's admission to AIM
has been rewarding. Technical studies on each of the primary projects of the
Company have been positive.
In February 2005 we acquired the Voskhod Chrome asset as a complementary
commodity to our Shevchenko Nickel project. Since then we have progressed the
project to the stage where the decision was taken to commence the initial
development of an underground mine. The initial stages of mine development and
design for an exploration decline are relatively low cost and will be undertaken
simultaneously with the completion of a definitive feasibility study ("DFS").
The preliminary assessment study ("PAS"), authored by Steffen, Robertson &
Kirsten (UK) Ltd ("SRK"), shows extremely robust economics and provides the
basis for our decision to expedite development so as to accelerate a positive
cash flow for the Company in 2007.
JSC Varvarinskoye
In June 2005 Oriel completed the sale of Althames Holdings Limited, the holder
of its 14% interest in JSC Varvarinskoye, the operating subsidiary of the gold
mining company European Minerals Corporation. The initial proceeds of the
transaction, US$5.0 million in cash have already been received. Oriel will
receive the final balance of the consideration of US$2.25 million in cash on the
earlier of the 15th business day following the date of the first gold pour from
the Varvarinskoye mine or on 31 December 2006. The 14% interest in JSC
Varvarinskoye was acquired on 3 March 2004 for a consideration of #300,000 paid
wholly in Oriel shares.
Management team and quality partnerships
I am pleased to announce that recent changes in the board structure, with the
redefinition of certain roles, reflect the direction in which Oriel is evolving
and progressing as a company. The core of our operations are centred in
Kazakhstan and in recognition of this fact the board of directors has appointed,
Mr Takhirzhan T Baratov as an executive director of Oriel. Mr Baratov became
involved with the mining industry in 1994 and has been General Director of
Muzbel LLP ("Muzbel"), Oriel's subsidiary in Almaty, since before Oriel acquired
its interest in the Shevchenko project. He has advised and consulted to a number
of UK and Canadian public companies and has been the director of a number of
joint ventures in Kazakhstan. In addition, Mr Baratov is currently the General
Director of Voskhod-Oriel LLP the 100% owner of the Voskhod project.
In July 2005 Dr Max Baker resigned from the board of the Company. Dr Baker felt
it was appropriate to step down as a director in view of the Company's progress
from exploration to project development. Dr Baker will continue to act as chief
geologist to the Company on a full-time basis during the final stages of the DFS
of the Shevchenko project and commencement of the DFS for the Voskhod project.
Reflecting the Company's evolution and following the listing and commencement of
trading of Oriel shares on the Toronto Stock Exchange in February 2005, it was
considered prudent to appoint two Canadian non-executive directors. Roger T
Richer and John D Reynolds were formally appointed to the board in March 2005.
Since its inception, Oriel has established a strong management team with
experience in building successful projects and effecting and developing
exploration strategies worldwide. We also have substantial cash resources,
strong local partnerships and local and federal governmental support in both
Kazakhstan and Kyrgyzstan, all of which provide a sound platform for future
growth.
Financial results
Oriel remains in the exploration and development stage on all projects. As a
result of the sale of the 14% interest in Varvarinskoye a profit was achieved in
the period. The retained profit for the period ended 30 June 2005 of #2.7
million was achieved after exploration expenditure of #0.7 million and
administrative expenditure of #0.6 million. Additionally, the Group incurred
exploration costs of #2.9 million relating to the Shevchenko Nickel project,
which have been deferred in line with the Group's accounting policy on mining
rights and deferred exploration. Earnings per share were 1.4 pence compared to a
loss per share of 5.4 pence in the period to 30 June 2004.
Dr Sergey V Kurzin
Executive Chairman
Review of Operations
Voskhod Chrome
Oriel purchased Voskhod in February 2005 for the equivalent of US$15.0 million
in cash and the allotment of 9,181,352 shares, at the time valuing Voskhod at
US$25.0 million. The deposit has a NI 43-101 compliant resource of 18.7 million
tonnes at a grade of 46.2% Cr(2)O(3) which was calculated by SRK in August 2004.
In April 2005 Oriel commenced a diamond drilling programme on the deposit to
confirm the previous data set.
A drill programme was subsequently undertaken under the direct supervision of
SRK and encompassed both resource confirmation and geotechnical drilling. To
date 40 diamond drillholes with a combined 13,042m of drilling have been
completed. A further ten resource and one geotechnical drillholes are planned to
complete both programmes. In addition to the monitoring role, SRK was
commissioned to prepare a PAS for an underground mine and ore beneficiation
plant and direct sales of chromite ore to markets in Russia and China.
The PAS was completed in September 2005. SRK undertook an audit of the Soviet
compiled Voskhod resource estimate in August 2004 and was sufficiently confident
of the data set to place them into the AusIMM JORC (1999) classified Indicated
and Inferred categories. The SRK calculated resource comprises 18.7 Mt at 46.2%
Cr(2)O(3) (Indicated) and 0.59Mt at 14.56% Cr(2)O(3) (Inferred). This resource
statement complies with National Instrument (NI) 43-101 standards for reporting
of resources and was prepared by Dr Alwyn Annels of SRK. The economic estimate
has been based entirely on the Indicated resources and was prepared by Mr Beare
of SRK in July 2005. Dr Annels and Mr Beare are both designated as qualified
persons under the terms of NI 43-101. These reserves suggest that mine
production can be sustained at Voskhod at 700,000 tonnes per annum for a period
of 25 years.
SRK was assisted in the production of the PAS by Heinz Pariser, Alloy Metals &
Steel Market Research, which provided the chromite ore marketing and pricing
data. In addition Mintek, of South Africa was used for the process options and
preliminary plant design.
On the basis of the PAS, which indicated favourable economic returns, coupled
with the high quality of mineralization intercepted in the diamond drilling
programme, it was decided that Oriel should immediately fast-track the project
by undertaking initial project development simultaneously with the completion of
the DFS, both of which are expected by the end of March 2006. With a view to
cutting the lead time to production, Oriel will initiate development of an
exploration decline and has appointed SRK to undertake the design of the ramp/
decline, which is to be developed, subject to State approval, commencing in
March/April 2006.
Oriel is obtaining proposals from three international engineering contractors
for the design and costing of the chromite beneficiation plant, in order to
enable a decision to be made on the DFS engineers and process design companies
during October. Metallurgical test work will be used by the nominated
engineering contractor to complete the project design and costing elements of
the study.
Through to the end of 2005 additional work required to complete the ramp design
for the feasibility study will be completed by SRK. Geotechnical drilling will
be carried out along the proposed decline route and water monitoring wells
installed. A representative 500kg sample of chromite ore will be sent to South
Africa to the Mintek laboratory facilities for test work to assist in the final
plant design.
Oriel is in consultation with its advisors, Endeavour Financial, on the
availability of debt financing for the project. A number of international banks
have been approached and have indicated their interest in providing up to 70%
debt funding. Equity financing of the project will be provided entirely from
Oriels existing cash reserves.
Shevchenko Nickel
In 2004 Oriel appointed Bateman Metals, South Africa, as lead engineers for the
DFS and scheduled completion for September 2005. This date was viewed as being
aggressive and due to delays in the receipt of final tenders and reworking of
the engineering and process costs in order to achieve project optimisation,
Oriel has deemed it prudent to delay the completion of the DFS until 1st Quarter
2006.
An extensive programme of geotechnical drilling, totalling 1,535m has been
completed, targeting the needs of both civil construction and resource
sterilisation. In addition, an 1,800m programme of hydrological drilling to
provide data for groundwater modelling and monitoring purposes as part of the
Environmental and Social Impact Study has been completed. 16 monitoring wells
were constructed to be used as long-term monitoring holes, for the lifetime of
the proposed Shevchenko mining project.
Shevchenko comprises nine mineral ore bodies (Shevchenko, Blizhny, Grigoriev,
Tarasov, Jubilee, Yuzhniy-1, 2, 3 and Kundybai) and Oriel made the decision to
drill eight of these ore bodies commensurate with the DFS. Oriel has completed
infill and confirmation drilling on eight of these, with 6,200m of drilling on
the Yuzhniy orebodies in the reporting period.
In March 2005 a demonstration scale test campaign on a 450 tonne sample of
Shevchenko nickel ore was conducted in the 2MVA DC arc furnace at the Mintek
facilities in South Africa. This programme confirmed the operating conditions
for the furnace and allowed Bateman, South Africa, to use the optimised process
parameters in the detailed design and costing. In addition, a 70 tonne sample of
ore was tested at the Polysius, ThyssenKrupp, facilities in Germany for the
milling, drying, calcining and upgrade characteristics. All the metallurgical
test work completed to date has confirmed the amenability of the ore to the
selected pre-treatment and smelting processes selected.
The detailed Environmental and Social Impact Assessment is being prepared to
World Bank standards by Wardell Armstrong International, UK, in collaboration
with the local Kazakhstan Institute, Kazmechanobr, who are preparing the locally
required environmental statements.
Negotiations with potential off-takers for the ferronickel product have been
progressing during the period and Oriel expects to finalise the details before
completion of the DFS.
In association with our advisors Endeavour Financial, Oriel has received
positive responses in respect of indicative term sheets from a number of
international banks for the debt portion of the required project financing.
In July 2005 Oriel received from the Government of Kazakhstan notification that
Muzbel LLP has been granted certain tax incentives through the existing
Investment Contract for the development of the Shevchenko plant. These
incentives include: five year accelerated depreciation on capital expenditure
and exemption from land and property taxes for five years following
commissioning of the plant.
GOLD PROJECTS
The Board of Oriel continues to consider its strategic options regarding the
following projects.
Taldybulak Gold-Copper Project (Kyrgyzstan)
On 10 May 2005, Oriel entered into an option agreement to acquire the entire
issued share capital of Kami Associates Limited (KAL). KAL holds a 100% interest
in Talas Copper Gold Limited Liability Company, a company which holds the 42.89
km(2) licence for the geological exploration of the Taldybulak deposit in the
Talas region of the Republic of Kyrgyzstan. The Company paid an initial
consideration of US$1.5 million in cash for the option. Consideration for the
exercise of the option is the issue of such number of shares having a value of
#1 million or the payment of #1 million in cash (at the sole discretion of the
Company) and an additional US$1.5 million in cash payable 12 months from
completion of the acquisition in the event the Company continues to retain the
benefit of the exploration licence at that time.
A Soviet type C(1)+C(2) resource for Taldybulak of 13.5 million tonnes at 1.42 g
/t gold and 0.23% copper has been lodged with the State Reserves Committee.
These resource estimates are under the Soviet classification system and are not
CIMM, JORC (1999) or NI 43-101 compliant.
Oriel is encouraged that the style of mineralisation at Taldybulak is
sufficiently similar with known porphyry deposits and that with the encouraging
surface and drill hole intercepts there is potential for the occurrence of a
multi-million ounce gold deposit.
Since signing the option agreement, Oriel has had the exploration programme
approved by the Kyrgyz authorities and commenced with construction of an access
road to the project site. Oriel has completed a topographic survey and detailed
geological mapping of the licence. The results of geophysical surveys to define
the structure and extent of mineralisation are currently being assessed to
enable Oriel to identify potential additional drilling targets. Geochemical and
trench sampling programmes have been initiated, with these programmes currently
ongoing. A drilling programme is planned to commence on Taldybulak in September
2005.
Tokhtazan Gold Project (Kyrgyzstan)
On 29 April 2005, Oriel agreed to complete the acquisition of the Tokhtazan gold
deposit, through its 100% owned subsidiary, Oriel in Kyrgyzstan LLC. The
purchase consideration for the acquisition was an initial option fee of
US$800,000 paid in March 2005 and the issue of 1,000,000 shares fully paid as
consideration for the exercise of the option.
Under the terms of the acquisition, Oriel acquired two licences issued by the
Government of Kyrgyzstan. Prior to agreeing to complete the acquisition, Oriel
commissioned Wardell Armstrong International (WAI) to undertake a review of the
property and Dr. Phil Newall duly completed a site visit, data review and
rendered a technical report which indicated that the project has considerable
merit. Dr. Newall is a qualified person in accordance with definitions set out
in National Instrument 43-101 and is a UK-based chartered engineer (CEng) and
Fellow of the Institute of Materials, Minerals and Mining (FIMMM).
Oriel considers Tokhtazan to be a middle stage exploration play having a
significant gold resource and that previous exploration has gone some way to
allowing a properly quantified resource to be established. A 2000 resource
statement by the previous licensee, Cameco, indicated that the resource fell
into the Soviet C2 category, and that it consisted of 21.2 million tonnes at a
grade of 1.57 g/t of gold at a cut-off grade of 0.5g/tAu. These resource
estimates do not comply with the CIMM classification; however the resource has
been reported by WAI to compare with the CIMM Inferred category. Oriel considers
there to be upside potential for additional resource within the deposit itself
and the surrounding areas.
An initial geological exploration programme on the license area has commenced
with the construction of an access road, topographic surveying and detailed
geological mapping. Geophysical surveys of the main mineralized areas of the
licence have been undertaken, the results of which are currently being
interpreted. Trenches across the main mineralized zones have been outlined and
are currently being excavated. A 2005 drilling programme has been designed and
planned to commence prior to the onset of the winter season.
Taboga Gold Project (Russian Federation)
The Company currently holds an option to acquire an indirect 50% undivided
working interest in the Taboga Gold Project in the Magadan region of Russia in
partnership with OAO Dukatskaya Gorno-Geologicheskaya Company. The option is
over the entire issued share capital of Caledone Finance Limited, a company
incorporated in Niue, holding a 50% interest in Taboga Gorno-Geological Company,
which holds the resource rights to the Taboga Gold Project.
Consideration for the exercise of the option is the issuance to the optionor of
such number of Oriel shares having a value of #500,000 or the payment of
#500,000 in cash to the vendor at the sole discretion of Oriel.
On behalf of Oriel an exploration programme was undertaken, consisting of the
drilling of three fences of three holes each across the main target profiles
comprising in total 2,100 m of diamond drilling. All holes intersected
disseminated sulphide mineralisation; zones of quartz-sericite metasomatism; and
quartz and quartz-carbonate veinlets. Assay results for all samples taken from
the drilling campaign are awaited.
Olcha Gold Project (Russian Federation)
Caledone Finance Limited also has a 50% interest in the Korkodonskaya Mining
Geological Company, on behalf of which an application has been made for certain
licences relating to geological exploration in respect of the Olcha group of
epithermal gold deposits. The application is still pending.
Oriel Resources plc
Consolidated profit and loss account for the period ended 30 June 2005
6 months ended Period from 2 Period from 2
July 2003 to July 2003 to
30 June 30 June 31 December
2005 2004 2004
Note (Unaudited) (Unaudited) (Audited)
#'000 #'000 #'000
Exploration expenses (655) (2,573) (7,481)
Other administrative expenses (634) (2,223) (4,200)
Administrative expenses and operating loss (1,289) (4,796) (11,681)
Interest receivable and similar income 452 269 775
Loss on ordinary activities (837) (4,527) (10,906)
Profit on disposal of subsidiary undertaking 4 3,498 - -
Profit/(loss) before taxation 2,661 (4,527) (10,906)
Taxation on profit/(loss) on ordinary activities - - -
Profit/(loss) after taxation 2,661 (4,527) (10,906)
Minority interest 33 143 394
Retained profit/(loss) 2,694 (4,384) (10,512)
Earnings/loss per share
Basic earnings/(loss) per share 2 1.4p (5.4)p (9.7)p
Diluted earnings/(loss) per share 2 1.4p (5.4)p (9.7)p
All amounts relate to continuing activities.
Oriel Resources plc
Consolidated balance sheet at 30 June 2005
At 30 June At 30 June At 31 December
2005 2004 2004
Note (Unaudited) (Unaudited) (Audited)
#'000 #'000 #'000
Fixed assets
Tangible assets 831 1,312 771
Intangible assets 29,187 12,667 12,068
Fixed asset investments 806 784 300
30,824 14,763 13,139
Current assets
Debtors: amounts due within one year 359 108 432
Debtors: amounts due after one year 1,234 - -
1,593 108 432
Cash and short term deposits 27,078 30,430 26,212
28,671 30,538 26,644
Creditors: amounts falling due within one year (586) (144) (532)
Net current assets 28,085 30,394 26,112
Total assets less current liabilities 58,909 45,157 39,251
Creditors: amounts falling due after more than one
year (1,160) (1,185) (1,086)
Provisions for liabilities and charges (200) - (200)
Net assets 57,549 43,972 37,965
Capital and reserves
Called up share capital 2,016 1,635 1,645
Share premium account 5 52,568 40,596 40,710
Merger reserve 5 9,744 5,099 5,099
Profit and loss account 5 (7,541) (4,384) (10,305)
Shareholders' funds - equity 56,787 42,946 37,149
Minority interests - equity 762 1,026 816
57,549 43,972 37,965
Oriel Resources plc
Consolidated cash flow statement for the period ended 30 June 2005
6 months ended Period from 2 Period from 2
July 2003 to July 2003 to
30 June 30 June 30 December
2005 2004 2004
Note (Unaudited) (Unaudited) (Audited)
#'000 #'000 #'000
Net cash outflow from operating activities 6 (2,399) (6,452) (10,018)
Returns on investments and servicing of finance
Interest received 452 269 775
Net cash inflow from returns on investments and
servicing of finance 452 269 775
Capital expenditure and financial investment
Purchase of tangible fixed assets (99) (1,335) (1,459)
Purchase of fixed asset investment (806) - -
Purchase of intangible assets (2,864) - (1,128)
Net cash outflow from capital expenditure and financial
investment (3,769) (1,335) (2,587)
Acquisitions and disposals
Purchase of subsidiary undertakings (8,640) (3,085) (3,085)
Disposal of subsidiary undertaking 4 2,564 - -
Net cash outflow from acquisitions and disposals (6,076) (3,085) (3,085)
Cash outflow before management of liquid resources and
financing (11,792) (10,603) (14,915)
Movement of liquid resources
Movement on deposits (8,724) (25,615) (15,541)
Purchase of trade investments - (917) (917)
Sale of trade investments - - 484
Cash outflow from management of liquid resources (8,724) (26,532) (15,974)
Financing
Issue of ordinary shares 12,076 41,800 41,800
Exercise of share options and warrants 50 150 275
Cash inflow from financing 12,126 41,950 42,075
(Decrease)/increase in cash for the period 7 (8,390) 4,815 11,186
Oriel Resources plc
Notes to the Interim Report for the period ended 30 June 2005
1 Accounting policies
Basis of preparation of Financial Statements
The interim financial information set out in pages 9 to 14 has been prepared on
the same basis and using the same accounting policies as were applied in drawing
up the Group's statutory financial statements for the period ended 31 December
2004 and have been prepared under the historical cost convention, unless stated
otherwise and in accordance with applicable accounting standards.
The financial information for the 6 months ended 30 June 2005 and period ended
30 June 2004 is unaudited and within the meaning of section 240 of the Companies
Act 1985, such accounts do not constitute full statutory accounts of the Group.
Where purchase consideration has included the issue of shares in the parent
company, Oriel Resources Plc, the purchase price has been adjusted to reflect
the fair value of the consideration on the date of purchase.
2 Basic and diluted earnings/(loss) per share
The basic earnings per share of 1.4 pence (2004: 5.4 pence loss) is calculated
in accordance with FRS22 (Earnings per share), on a profit on ordinary
activities after tax of #2,693,613 (2004: #4,383,850 loss) and on 193,004,841
ordinary shares (2004: 80,947,137), being the weighted average number of
ordinary shares in issue during the period.
The diluted earnings per share of 1.4 pence is calculated in accordance with
FRS22 (Earnings per share), on a profit on ordinary activities after tax of
#2,693,613 and on 198,181,600 ordinary shares, being the weighted average number
of dilutive potential ordinary shares in issue during the period.
3 Dividends
The directors do not recommend the payment of a dividend for the period.
4 Disposal of subsidiary undertaking
On 19 May 2005 the Group disposed of its subsidiary Althames Holdings Limited
for $7,250,000, representing a profit on disposal of #3,498,000. $2,250,000 of
the consideration will be received at the earlier of the 15th business day
following the date of the first gold pour at the Varvarinskoye mine or 31
December 2006.
5 Reserves
Share premium Merger reserve Profit and loss Total
account account
#'000 #'000 #'000 #'000
At 1 January 2005 40,710 5,099 (10,305) 35,504
Issue of shares 13,032 4,645 - 17,677
Profit for the period - - 2,694 2,694
Translation differences on foreign
currency net investments in subsidiary
undertakings - - 70 70
Share issue costs (1,174) - (1,174)
At 30 June 2005 52,568 9,744 (7,541) 54,771
6 Reconciliation of operating loss to net cash outflow form operating activities
6 months ended Period ended Period ended
30 June 30 June 30 December
2005 2004 2004
#'000 #'000 #'000
Operating loss (1,289) (4,796) (11,681)
Depreciation 41 23 142
Decrease/(increase) in debtors 73 (109) (432)
Increase/(decrease) in creditors 155 (1,991) (1,864)
Provision for rehabilitation - - 200
Provision for impairment - 433 2,663
Loss on disposal of listed investments - - 433
Foreign exchange differences (1,379) (12) 521
Net cash outflow from operating activities (2,399) (6,452) (10,018)
7 Reconciliation of net cash flow to movement in net funds
6 months ended Period ended Period ended
30 June 30 June 31 December
2005 2004 2004
#'000 #'000 #'000
(Decrease)/increase in cash in the period (8,390) 4,815 11,186
Cash flow from management of liquid resources 8,724 25,606 15,541
Exchange differences 532 9 (515)
866 30,430 26,212
Net funds at beginning of period 26,212 - -
Net funds at the end of period 27,078 30,430 26,212
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR ILFETATITFIE
1 Year Oriel Resources Chart |
1 Month Oriel Resources Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions
