RNS Number:0462Z
Mincorp Plc
28 February 2006
MINCORP PLC
Interim Report
For the six months ended
30th November 2005
CHAIRMAN'S STATEMENT
Dear Shareholders,
I am pleased to present to shareholders a report on our activities for the six
month period under review and an update to the end of February 2006.
DIRECTORATE.
Mr Jo Marlins resigned as a director of the company on 13 January 2006. I would
like to place on record my appreciation of the part played by Mr Malins in the
formation of the company. He was our first chairman and a substantial
shareholder.
On the same day, 13 January 2006, Ms Jocelyn Arreza was appointed to the board.
Ms Arreza is an experienced Filipino lawyer who is migrating to the United
Kingdom in April 2006 under the Highly Skilled Migrant Programme. She will be
devoting one day a week to attend to Mincorp Plc business in London.
We are seeking another director, resident in the London area, to increase the
size of the board to three. The person appointed should assist the company in
raising project finance. This will constitute a balanced board of directors with
technical, legal and financial skills.
INVESTMENT
Our main exploration activity is in the Philippines, where we incorporated a new
company early in 2005. This company, Mincorp Asia, Inc, is 40% owned by Mincorp
Plc. However, for any major development, the company may acquire a 100% interest
in a metalliferous mining or petroleum project. Mincorp Asia, Inc, has in turn
acquired a 100% interest in Bonaventure Mining Corporation, the applicant for
the Mt Cadig Exploration Permit.
The other wholly owned subsidiary is Procnima Exploration Pty Ltd, which has
acquired the mining tenements covering the New Waverley gold mine in Western
Australia. Mincorp Plc holds all the shares in this Australian incorporated
company.
OUTLOOK
At the date of this report the company has secured two attractive exploration
projects, comprising the Mt Cadig nickel project in the Philippines and the New
Waverley gold mine in Western Australia. The company has sufficient funds to
carry our a first stage testing programme at Mt Cadig and a limited diamond
drilling programme at the New Waverley mine. These will be more fully dealt with
in the report of the Chief Executive Officer.
CONCLUSION.
In the period since admission Mincorp has built up a small experienced technical
and administrative staff. The company is now ready to commence testing our
prospects. This will be a critical period but we are looking forward with
confidence to the results of this activity.
I thank, on your behalf, our nominated advisor, solicitors, accountants and
other advisors for their hard work and support.
Finally, on behalf of the Board, I wish to thank shareholders for the trust and
confidence they have placed in us.
Reginald Hare
Chairman
28th February, 2006.
CHIEF EXECUTIVE OFFICER'S REPORT
I am pleased to report to shareholders a summary of the activities of Mincorp
Plc and associated companies to 30th November 2005. This report also deals with
the period since then and includes results up to the end of February 2006.
GENERAL.
In little over a year since listing on the AIM Market of the London Stock
Exchange, the company has established a small but experienced organisation based
in Manila. During the period since commencement of operations our main objective
has been to acquire top quality prospects for exploration and development. With
the acquisition of Mt Cadig and the New Waverley mine, the first phase of our
programme is completed. Exploration and testing of both these projects is now
about to commence.
In view of the limited amount of capital raised in our issue to the public, we
have operated as economically as possible. We will continue to do so as I have
always believed the cutting edge of a mining exploration company is money spent
in the field. Company overheads are a necessary but non-productive item.
MT CADIG.
We were hoping to commence fieldwork on Mt Cadig during 2005. However, the
process of applying for and obtaining a mining tenement in the Philippines
involves complete involvement of the communities within the area, which, in the
case of Mt Cadig, is an Exploration Permit Application of approximately 9,462
hectares. I am pleased to report that we have now completed all the governmental
requirements necessary and anticipate the Exploration Permit will be issued to
Bonaventure Mining Corporation, a wholly owned subsidiary of Mincorp Asia, Inc,
during March 2006. Immediately after this occurs we will commence a drilling and
pitting programme.
One positive aspect of community involvement is to discover the true attitude of
the local people towards exploration and mining in their area. We have been
delighted with the response. Almost without exception the local communities and
their elected officials are eagerly awaiting the commencement of our exploration
programme.
No work has been carried out at Mt Cadig since 1970, when the then tenement
holder sunk 103 test pits to an average depth of approximately 7 metres. We have
been unable to secure the original analyses of the samples taken from the test
pits.
The official tonnage/grade figure reported by the Philippines Bureau of Mines is
83 million metric tons grading 1.4% nickel. Our geological staff has estimated
the whole deposit contains in the order of 120 million tons of lateritic
material. The testing programme will be aimed at determining the size and grade
of the nickel ore resource.
Unrefined nickel ore is now a sought after commodity by overseas nickel
smelters. So called "saprolite ore", grading over 2% nickel has been exported
from the Philippines to Japanese nickel smelters for several decades. However,
due to the shortage of nickel, there is now a market for nickel ore grading
better than 1.5% nickel for bulk shipment overseas.
Although the ultimate object at Mt Cadig is to delineate a resource to support a
treatment plant capable of producing refined nickel products, there is an
excellent chance that we will discover sufficient high-grade nickel laterite to
commence a bulk shipping operation. The deposit is reasonably close to the
coast. A low capital cost operation would involve barging ore out to a mother
ship.
NEW WAVERLEY GOLD MINE
Procnima Exploration Pty Ltd, a wholly owned Australian subsidiary of the
company, purchased outright the New Waverley tenements for #86,000 in 2005. The
open cut produced a small quantity of high-grade gold ore in the 1980's.
The New Waverley goldmine is located in the Norseman goldfield approximately 200
kilometres south of Kalgoorlie in Western Australia. The field has been worked
continuously for the last 110 years for the production of over six million
ounces of gold.
New Waverley is located in the northern portion of the field. The closest mine
is the Princess Royal which has produced over 1,800,000 ounces of gold at an ore
grade of approximately 17 grams per ton. Deep soil cover or shallow sediments
conceal most of the productive reefs at Norseman. New Waverley is no exception.
The narrow gold bearing veins in the hanging wall of the fault may be the
shallow expression of a concealed reef in the fault under-wall. The primary
target is a concealed gold-quartz reef below the Waverley fault. This prospect
is completely untested.
The first drill hole with a target depth of 500 metres has been laid out to
penetrate the fault and search for the source of the narrow hanging wall
gold-quartz veining. A contract has been let and diamond drilling will commence
in early March 2006. We should have a result by the end of that month or early
April.
PROJECT DEVELOPMENT
Because of the need to conserve our funds to thoroughly test Mt Cadig, the
search for new projects has been scaled down.
REGINALD HARE
Chief Executive officer
28th February 2006
Independent Review Report to Mincorp PLC
Introduction
We have been instructed by the Company to review the financial information set
out on pages 7 to 11 and we have read the other information contained in the
interim report and considered whether it contains any apparent misstatements or
material inconsistencies with the financial information.
This report, including the conclusion, has been prepared for and only for the
Company for the purpose of their interim report and for no other purpose. We do
not, therefore, in producing this report, accept or assume responsibility for
any other purpose or to any other person to whom this report is shown or into
whose hands it may come save where expressly agreed by our prior consent in
writing.
Directors' responsibilities
The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by the Directors.
Review work performed
We conducted our review in accordance with guidance contained in Bulletin 1999/4
issued by the Auditing Practices Board as if that Bulletin applied. A review
consists principally of making enquiries of the Directors and applying
analytical procedures to the financial information and underlying financial data
and based thereon, assessing whether the accounting policies and presentation
have been consistently applied unless otherwise disclosed. A review excludes
audit procedures such as tests of controls and verification of assets,
liabilities and transactions. It is substantially less in scope than an audit
performed in accordance with Auditing Standards and therefore provides a lower
level of assurance than an audit. Accordingly we do not express an audit
opinion on the financial information.
Review conclusion
On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months
ended 30th November 2005.
CHAPMAN DAVIS LLP
Chartered Accountants
2 Chapel Court
London SE1 1HH
Consolidated Income Statement (Unaudited)
For the 6 months ended 30 November 2005
Notes # #
Six months ending 30 Period ending 31
November 2005 May 2005
(Unaudited) (Audited)
Administrative expenses (59,512) (37,534)
OPERATING (LOSS) (59,512) (37,534)
Interest received 12,612 4,642
Share of associate (loss) (10,000) -
(LOSS) BEFORE TAXATION (56,900) (32,892)
Taxation 2 - -
(LOSS) ON ORDINARY ACTIVITIES AFTER TAXATION (56,900) (32,892)
(Loss) per share :
Basic 4 (0.0005)p (0.07)p
The financial year end of MINCORP PLC is 31 May. The comparatives in the
consolidated Profit and Loss account are for the period 27 May 2004 to 31 May
2005.
Consolidated Balance Sheet (Unaudited)
At 30 November 2005
Notes # #
Six months ending 30 Period ending
November 2005 31 May 2005
(Unaudited) (Audited)
FIXED ASSETS
Intangible Assets 132,775 46,397
Investments - 10,000
TOTAL FIXED ASSETS 132,775 56,397
CURRENT ASSETS
Debtors 190,766 75,648
Cash at bank and in hand 241,519 464,452
TOTAL CURRENT ASSETS 432,285 540,100
CURRENT LIABLILITES
Creditors: Amounts falling due within one year (64,572) (39,109)
TOTAL CURRENT LIABLITIES (64,572) (39,109)
NET CURRENT ASSETS 367,713 500,991
NET ASSETS 500,488 557,388
CAPITAL AND RESERVES
Called up share capital 6 120,001 120,001
Share premium 470,279 470,279
Profit and loss account (89,792) (32,892)
EQUITY SHAREHOLDERS' FUNDS 7 500,488 557,388
Consolidated Cash Flow Statement (Unaudited)
For the 6 months ended 30 November 2005
Notes # #
Six months ending 30 Period ending 31
November 2005 May 2005
(Unaudited) (Audited)
CASH OUTFLOW FROM OPERATING ACTIVITIES (30,765) (74,073)
Returns on investments and servicing of finance 12,612 4,642
Capital expenditure and investment (86,378) (56,397)
CASH OUTFLOW BEFORE FINANCING (104,531) (125,828)
Financing (118,402) 590,280
NET CASH (DECREASE)/INCREASE IN 5
THE PERIOD (222,933) 464,452
Notes to the Interim Report
For the 6 months ending 30 November 2005
1. ACCOUNTING POLICIES
(a) Presentation of interim results
This interim report was approved by the Directors on February 2006. The interim
results have not been audited, but were the subject of an independent review
carried out by the Company's auditors, Chapman Davis LLP. Their review
confirmed that the figures were prepared using applicable accounting policies
and practices consistent with those to be adopted in the annual report. The
financial information contained in this interim report does not constitute
statutory accounts as defined by Section 240 of the Companies Act 1985.
(b) Basis of preparation
These financial statements have been prepared under the historical cost
convention and in accordance with the applicable UK accounting standards.
(c) Basis of consolidation
The financial statements of controlled entities are included in the consolidated
financial statements from the date control commences until the date control
ceases.
The Group profit and loss account and balance sheet combine the accounts of the
Company and its subsidiaries, using the acquisition method of accounting.
(d) Goodwill
Goodwill on consolidation is capitalised and shown within fixed assets.
Positive goodwill is subject to annual impairment review with movements charged
in the profit and loss account. Negative goodwill is reassessed by the
Directors and attributed to the relevant assets to which it relates
2. TAXATION
No taxation has been provided due to losses in the period.
3. DIVIDENDS
The Directors do not recommend the payment of a dividend.
4. LOSS PER SHARE
Six months ending Period ending
30 November 2005 31 May 2005
(Unaudited) (Audited)
Basic Loss for the period
(Loss) (#s) (56,900) (32,892)
Weighted Average Number of Shares 120.00 million 47.68 million
(Loss) Per Share - pence (0.0005)p (0.07)p
The basic earnings per share has been calculated on a loss on ordinary
activities after taxation of #56,900 (31 May 2005: #32,892 loss) and on
120,001,000 (31 May 2005: 47.68million) ordinary shares being the weighted
average number of shares in issue and ranking for dividend during the period.
No diluted loss per share is presented as the effect of exercise of outstanding
options is to decrease the loss per share.
5. RECONCILIATION OF NET CASHFLOW TO MOVEMENT IN NET FUNDS
# #
Six months ending Period ending
30 November 2005 31 May 2005
(Unaudited) (Audited)
(Decrease)/increase in cash in the period (222,933) 464,452
Net funds at beginning of period 464,452 -
Net funds at end of period 241,519 464,452
6. SHARE CAPITAL
The authorised share capital of the Company and the called up and fully paid
amounts at 30 November 2005 were as follows:-
# #
Six months ending Period ending
30 November 2005 31 May 2005
(Unaudited) (Audited)
Authorised:
100,000,000 ordinary shares of 0.1p each 1,000,000 1,000,000
======= =======
Allotted, called up and fully paid:
120,001,000 ordinary shares of 0.1p each 120,001 120,001
======= =======
7. RECONCILIATION OF MOVEMENT IN SHAREHOLDERS' FUNDS
Share Share Profit Total
capital premium and loss
account
# # # #
At 1 June 2005 120,001 470,279 (32,892) 557,388
(Loss) for the period - - (56,900) (56,900)
At 30 November 2005 120,001 470,279 (89,792) 500,488
Mincorp PLC
Company Information
Directors
Jocelyn Arreza
Reginald Hare
Secretary
Balfour Secretaries Limited
Registered office
2 Chapel Court
London
SE1 1HH
Nominated Adviser
Nabarro Wells & Co Ltd
Saddlers House
Gutter Lane
London EC2V 6HS
Broker
Keith, Bayley, Rogers & Co. Ltd
Sophia House
76-80 City Road
London EC1Y 2EQ
Auditors
Chapman Davis LLP
No.2 Chapel Court
London SE1 1HH
Registrar
Share Registrars Ltd
Craven House
West Street
Farnham
Surrey GU9 7EN
Registered number
05140143
This information is provided by RNS
The company news service from the London Stock Exchange
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