Trading Statement

 

TIDMBRR 
 
RNS Number : 4710Z 
Braemore Resources PLC 
22 September 2009 
 

 
 
AIM: BRR/ JSE: BRE 
 
 
Braemore Resources Plc 
 
 
("Braemore" or "the Company") 
 
 
Trading Statement 
 
 
In terms of the Listing Requirements of JSE Limited, a listed company is 
required to publish a trading statement as soon as it becomes reasonably certain 
that the financial results for the period to be reported on will vary by more 
than 20% from that of the previous corresponding period. 
Shareholders of Braemore are advised that the Company expects its loss per share 
and headline  loss per share for the year ending 30 June 2009 to be 0.94p loss 
per share, based on an expected after-tax loss for the period under review 
of approximately GBP7.4m, as opposed to a loss per share of 0.21p, based an 
after-tax loss of GBP1.408 million, in the corresponding period to 30 June 2008. 
The loss per share and headline loss per share for the half year period that 
ended 31 December 2008 was 0.56p (loss after tax of GBP4.4m). 
Specific events that contributed to the increase in the basic and headline loss 
include: 
  *  the shutdown and commissioning of the expanded demonstration smelter; 
  *  the conclusion of various smelter trials to demonstrate and prove the robustness 
  of the Con-Roast process; 
  *  a subsequent brief shutdown with a minor smelter runout; 
  *  sharp falls in metal prices during the first half of the year with only a modest 
  recovery during the latter part of the year; 
  *  the sharp appreciation in the Rand / US $ exchange rate in a period of flat 
  platinum group metal prices, which resulted in the smelter margin contracting; 
  *  the smelter being put on temporary shutdown upon the conclusion of the 
  development programme; and 
  *  merger activity and associated legal and compliance expenses; 
  *  Costs and associated legal and compliance expenditure incurred on the listing of 
  Braemore on the JSE; 
  *  The finalisation and conclusion of old order smelting contracts. 
 
During this period Braemore has advanced the development of the ConRoast process 
with the conclusion of development work on both the smelting and refining 
processes. 
Braemore has also advanced the restructuring of the Company ahead of the merger 
with Jubilee Platinum plc ("Jubilee") to realise a significant reduction in 
overhead costs which will flow through into the next reporting period. The cash 
position of the Company as at the end of the period was GBP0.30 
million, excluding PGM concentrate and smelted alloy inventory valued at GBP0.90 
million.  In addition, as part of the merger with Jubilee ,  and as previously 
announced, the Company entered into an implementation agreement with Jubilee on 
3 July 2009, whereby Jubilee made available to Braemore a working capital 
facility whilst the merger is being implemented. 
Braemore has also just successfully fully contracted the demonstration facility 
which is in the process of being re-commissioned under a smelting agreement. 
The financial information on which this trading statement is based has not been 
reviewed or reported on by Braemore's external auditors. 
The Company's results for the year ended 30 June 2009 will be published on 30 
September 2009. 
 
 
Enquiries: 
+----------------------------------------------+-------------------------+ 
| Braemore Resources Plc                       |                         | 
+----------------------------------------------+-------------------------+ 
| Leon Coetzer, Chief Executive Officer        | [phone]         | 
+----------------------------------------------+-------------------------+ 
|                                              |                         | 
+----------------------------------------------+-------------------------+ 
| WH Ireland: (Nomad and Joint Broker)         |                         | 
+----------------------------------------------+-------------------------+ 
| James Joyce                                  | [phone]        | 
+----------------------------------------------+-------------------------+ 
|                                              |                         | 
+----------------------------------------------+-------------------------+ 
| Mirabaud Securities: (Joint Broker)          |                         | 
+----------------------------------------------+-------------------------+ 
| Rory Scott                                   | [phone]         | 
+----------------------------------------------+-------------------------+ 
|                                              |                         | 
+----------------------------------------------+-------------------------+ 
| Qinisele Resources: (RSA Corporate Advisers) |                         | 
+----------------------------------------------+-------------------------+ 
| Dennis Tucker                                | [phone]         | 
+----------------------------------------------+-------------------------+ 
|                                              |                         | 
+----------------------------------------------+-------------------------+ 
| Russell and Associates: (RSA Public          |                         | 
| Relations)                                   |                         | 
+----------------------------------------------+-------------------------+ 
| Nicola Taylor/Charmane Russell               | [phone]         | 
+----------------------------------------------+-------------------------+ 
|                                              |                         | 
+----------------------------------------------+-------------------------+ 
| Walbrook PR: (UK Public Relations)           |                         | 
+----------------------------------------------+-------------------------+ 
| Louise Goodeve/Leah Kramer                   | [phone]        | 
+----------------------------------------------+-------------------------+ 
|                                              |                         | 
+----------------------------------------------+-------------------------+ 
| Sasfin: (RSA Corporate Sponsor)              |                         | 
+----------------------------------------------+-------------------------+ 
| Sharon Owens                                 | [phone]         | 
+----------------------------------------------+-------------------------+ 
 
 
Notes to Editors: 
 
 
Braemore Resources offers investors an attractive opportunity to enter into the 
PGMs and nickel business, initially through the mid-stream processing of these 
metals and, in time, through mine-to-market production opportunities. 
Braemore Resources is principally involved in evaluating, establishing and 
operating independent facilities for the roasting, smelting and refining of 
concentrates containing PGM and associated base metals and for the reclamation 
and processing of sulphide nickel tailings. Diversified both geographically and 
in terms of product, the company is located in two key mining regions - Braemore 
Nickel in Western Australia and Braemore Platinum in South Africa. Braemore's 
access to proprietary technology, and in particular the Mintek ConRoast 
technology, which has successfully operated at test plant level, makes the 
company well-positioned to become a significant player in the burgeoning South 
African PGMs sector, offering a more cost-effective, environmentally friendly 
and accessible smelting option to many junior mining companies. Unlike 
conventional smelters, ConRoast is unaffected by the high-chrome 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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