RNS Number:3353L
Tertiary Minerals PLC
20 May 2003
Interim Statement
for the six months ended 31 March 2003
Chairman's Statement
I am pleased to report the Company's progress and interim results for the
six-month period to 31st March 2003, significant progress having been made in a
number of areas.
Review of Activities
In Saudi Arabia, a positive scoping study was completed for the Ghurayyah
tantalum-niobium project indicating a three-year payback on capital costs of
$101 million, with attractive rates of return. The future development of this,
the world's largest deposit of tantalum, is enhanced by the favourable project
financing environment in Saudi where equity contribution could be as little as
12.5% of capital costs.
In Scandinavia, exploration tempo has increased as drill targets generated by
the Company's past exploration efforts are now being progressively tested. A
drilling programme was recently completed on the Finnmark Platinum Group Metals
project to investigated outcrops containing Platinum Group Metals and coincident
geophysical anomalies, whilst at NottrTM?sk in Sweden a nickel-copper target will
be drilled shortly. Exciting drill targets are also emerging from the Company's
recently initiated search for Olympic Dam (IOCG) style copper-gold deposits, for
example at Ahmavuoma where previous drilling returned wide intersections of
copper-gold-cobalt mineralisation.
The Company's share price has continued to reflect weak stock market sentiment
and in particular a depressed tantalum market in its major application in the
electronics industry. However, in 2003 the tantalum market is recovering, as
predicted in the Company's last annual report. It is reported that the negative
impact of de-stocking in the electronics supply chain has largely been removed
and real demand is being generated from the new generation of mobile phones.
Kemet and Cabot Corporations, leading manufacturers of tantalum capacitors and
powders, are reported to have increased quarterly sales by 7% and 21%
respectively, and Sons of Gwalia have announced new sales contracts for
additional tantalum concentrate at prices in line with its historical contracted
prices, which are substantially above recent spot prices for tantalum.
Your Board hopes that this recovery in the tantalum market will result in a
stronger share price for the Company.
Results
The Group loss for the period was #134,085. This comprises bank interest income
of #4,368, administration costs of #113,895 and exploration costs written-off
amounting to #24,558.
In May 2003, following the end of the reporting period, a placement of 3,125,000
shares was made at 8 pence per share to raise #235,000, net of expenses, for
working capital.
Full details of the Company's progress can be found in the various press
releases and quarterly reports published on the Company's recently refurbished
website at www.tertiaryminerals.com.
Patrick L Cheetham
Executive Chairman 20 May 2003
For further information contact:-
Tertiary Minerals plc
Sunrise House
Hulley Road Tel: +44 (0)1625 626203
Macclesfield Fax: +44 (0)1625 626204
Cheshire SK10 2LP
United Kingdom Website: www.tertiaryminerals.com
Consolidated Profit and Loss Account
for the six months to 31 March 2003
Six months to Six months to 31 Twelve months to
31 March 2003 March 2002 30 September
Unaudited Unaudited 2002
# # #
------------- --------------- ----------------
Administrative expenses (113,895) (145,073) (266,903)
Exploration costs written off (24,558) (3,695) (15,923)
------------- --------------- ----------------
Operating loss (138,453) (148,768) (282,826)
Interest receivable 4,368 4,213 9,604
------------- --------------- ----------------
Loss on ordinary activities
before taxation (134,085) (144,555) (273,222)
Taxation - - -
------------- --------------- ----------------
Loss for the financial period (134,085) (144,555) (273,222)
(note 2)
------------- --------------- ----------------
Loss per share - basic (pence) (0.5) (0.6) (1.1)
------------- --------------- ----------------
All the above amounts are derived from continuing activities
Consolidated Statement of Total
Recognised Gains and Losses
for the six months to 31 March 2003
Six months to Six months to Twelve months to 30
31 March 2003 31 March 2002 September
Unaudited Unaudited 2002
# # #
------------- --------------- ----------------
Loss for the financial year (134,085) (144,555) (273,222)
------------- --------------- ----------------
Foreign exchange translation
differences on foreign
currency net investments in 27,701 14,684 21,490
subsidiaries
------------- --------------- ----------------
------------- --------------- ----------------
Total recognised losses
since last accounts (106,384) (129,871) (251,732)
------------- --------------- ----------------
Consolidated Balance Sheet
as at 31 March 2003
As at 31 March As at 31 March As at
2003 2002 30 September
Unaudited Unaudited 2002
# # #
------------- --------------- --------------
Fixed assets
Intangible Assets 1,200,367 780,469 1,065,724
Tangible Assets 6,704 10,117 9,542
------------- --------------- --------------
1,207,071 790,586 1,075,266
Current assets
Debtors 67,697 36,108 67,772
Cash at bank and in hand 200,305 458,125 393,760
------------- --------------- --------------
268,002 494,233 461,532
------------- --------------- --------------
Creditors: amounts falling
due within one year 65,582 123,482 111,623
------------- --------------- --------------
Net current assets 202,420 370,751 349,909
------------- --------------- --------------
------------- --------------- --------------
Total assets less current
liabilities 1,409,491 1,161,337 1,425,175
------------- --------------- --------------
Capital and reserves
Called up share capital 284,210 244,428 276,652
Share premium 1,849,978 1,413,361 1,766,836
Merger reserve 131,096 131,096 131,096
Profit and loss account (855,793) (627,548) (749,409)
------------- --------------- --------------
Shareholders' funds 1,409,491 1,161,337 1,425,175
------------- --------------- --------------
Consolidated Cash Flow Statement
for the six months to 31 March 2003
Six months to Six months to 31 Twelve months to 30
31 March 2003 March 2002 September
Unaudited Unaudited 2002
# # #
------------- --------------- --------------
Net cash outflow from operating
activities (note 3) (165,016) (82,964) (248,495)
Return on investments and
servicing of finance 4,368 4,213 9,604
Capital expenditure and financial
investment (123,507) (196,320) (488,499)
Acquisition and disposals - - -
------------- --------------- --------------
Net cash outflow before financing (284,155) (275,071) (727,390)
Financing 90,700 439,461 827,415
------------- --------------- --------------
------------- --------------- --------------
(Decrease)/Increase in cash in the
period (note 4) (193,455) 164,390 100,025
------------- --------------- --------------
Notes to the Interim Statement
1. Basis of preparation
The interim report has been prepared on the basis of the accounting
policies set out in the Company's financial statements for the period
ended 30 September 2002. The financial information set out in this
statement relating to the period ended 30 September 2002 does not
constitute statutory accounts for that period. Full audited accounts in
respect of that financial period (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 report has been approved by the Directors and is unaudited.
Comparative figures for the six months ended 31 March 2002 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 2003 Six months to 31 March 2002 Twelve months to
Unaudited Unaudited 30 September
2002
--------------------------- --------------------------- ----------------
Loss for the period (#) (134,085) (144,555) (273,222)
Weighted average shares in 28,253,871 23,024,218 24,554,739
issue
Basic loss per share (pence) (0.5) (0.6) (1.1)
--------------------------- --------------------------- ----------------
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 March 2003 Six months to 31 March Twelve months to
Unaudited 2002 Unaudited 30 September
2002
# # #
--------------------------- ----------------------- ----------------
Operating loss (138,453) (148,768) (282,826)
Depreciation charge 2,976 3,566 5,615
Intangible fixed assets written off 16,427 - 10,003
Loss on foreign exchange - - -
Decrease/(Increase) in debtors 75 2,207 (29,457)
(Decrease)/Increase in creditors (46,041) 60,031 48,170
--------------------------- ----------------------- ----------------
--------------------------- ----------------------- ----------------
Net cash outflow from operating
activities (165,016) (82,964) (248,495)
--------------------------- ----------------------- ----------------
4. Reconciliation of net cash outflow to movement in net funds
Six months to 31 March 2003 Six months to 31 March 2002 Twelve months to
Unaudited Unaudited 30 September
2002
# # #
--------------------------- ------------------------- -----------------
(Decrease)/increase in net
cash in the period (193,455) 164,390 100,025
Opening net fund 393,760 293,735 293,735
--------------------------- ------------------------- -----------------
Closing net funds 200,305 458,125 393,760
--------------------------- ------------------------- -----------------
5. 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
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