Preliminary Annual Results
FOR IMMEDIATE RELEASE
27 November 2008
NEPTUNE MINERALS Plc
("Neptune" or the "Company")
Preliminary Annual Results
Neptune Minerals (AIM: NPM), a leading explorer and developer of
seafloor massive sulphide (SMS) deposits is pleased to announce its
preliminary results for the year ended 30 June 2008 this includes an
extract from the Chairman and Chief Executive report which highlights
achievements for the year and path going forward.
CHAIRMAN AND CHIEF EXECUTIVE'S REPORT
The 2007/2008 year has been a period of consolidation for Neptune
Minerals as the Company prepares for its transition from a mineral
explorer to a developer. Significant milestones were achieved during
the year to position Neptune to capitalise on its pre-eminent global
tenement holding.
Kermadec 07 exploration program completed
Exploration completed in August 2007 offshore New Zealand confirmed
two new hydrothermally inactive SMS zones in the Company's Kermadec
licence area PL39-195. Some historically bad weather caused breakages
and difficulties which delayed the program and limited completion of
the activities. Nevertheless, Neptune's team collected sufficient
information over those areas to lodge its first application for a
mining licence. Neptune has completed a structural analysis of the
tenement and prioritised targets for follow-up exploration and
definition.
Mining licence application submitted
Following extensive consultation with the New Zealand government,
Neptune submitted its first mining licence application (MLA)
subsequent to year-end in July 2008 for an area within the Company's
Kermadec licence PL39-195. Neptune is continuing discussions with the
New Zealand regulator Crown Minerals and with other government
departments, non-government organisations and interested community
groups to ensure an agreed application process.
Scoping study commissioned and completed
In October 2007 Neptune commissioned engineering consultants Technip
to undertake a mining scoping study to identify, cost and compare
alternative existing technologies for SMS mining. This study was
completed in April 2008 and confirmed the attractive economics of
seafloor mining, with total mining cost estimations ranging from
US$145-$162 per tonne.
Letter of intent signed for Project Trident
In March 2008 Neptune signed a letter of intent with C&C Technologies
for the provision of autonomous underwater vehicle (AUV) survey,
sampling and vessel charter services in preparation for Project
Trident - a continuous program of long-term exploration of Neptune's
tenements offshore New Zealand. Subject to vessel and equipment
availabilities, AUV survey and sampling operations are planned with
continuous operations for a minimum of 12 months.
Prequalification for seafloor mining contract
Neptune is working to engage operational partners to develop the
Kermadec asset and other New Zealand SMS deposits. In May 2008
Neptune issued a competitive prequalification tender for
international dredging and subsea engineering companies to build, own
and operate (BOO) a contract mining system for the commercial
development of SMS deposits.
New exploration licences granted in Vanuatu and Papua New Guinea
Neptune was granted additional exploration licences in Vanuatu in
October 2007 and in Papua New Guinea in November 2007. Neptune now
has the largest portfolio of any SMS development Company, with
278,000km2 of tenements granted and a further 436,000km2 under
application in the territorial waters of New Zealand, Japan, Papua
New Guinea, Vanuatu, the Federated States of Micronesia, Commonwealth
of Northern Mariana Islands, Palau and Italy.
New Zealand operations office established
Recent changes to support Neptune's growth strategy include the
establishment of an office in Wellington, New Zealand, and the
addition of key management personnel including a New Zealand country
manager and a contracts and procurement manager. Neptune's management
team is experienced and well prepared for future development and
increased exploration activity.
Reorganisation of the Board of Directors
In May 2008, founding Chairman Peter Vanderspuy resigned; existing
non-executive director John Goodwin adopted the positions of chairman
and head of the remuneration committee. Richard K Gorton accepted an
invitation to join the Board as non-executive technical director and
has joined the audit and remuneration committees. The Company thanks
Mr. Vanderspuy for his role in establishing Neptune.
On going funding
Neptune has adequate cash resources to continue in operational
existence until the end of the 2009 financial year. The Company is
involved in fund raising initiatives aimed at securing adequate
working capital beyond this date, although it is recognised that the
prevailing state of global capital markets is inhibiting this
process. Notwithstanding, management is confident of obtaining the
necessary funding to ensure that on-going commitments beyond the end
of 2009 are met and therefore does not believe it appropriate to
regard the assets of Neptune as impaired and have therefore reported
them at full value.
Future opportunities
The next 12-month period holds much promise and many challenges for
Neptune as the Company works to achieve its goal of trial mining by
2011. Priorities include:
* Securing funding for a Feasibility Project
* Securing funding for exploration activities in granted
licences
* Commencing Project Trident exploration
* Defining a contract mining partner
* Securing a mining licence for the Kermadec area
* Undertaking an environmental baseline study of the Rumble
II West mining licence area
* Building Neptune's exploration pipeline with selected new
exploration licence applications
END
For further information please contact:
Simon McDonald (Neptune MD and CEO): T: +61 (0) 2 9957 5244
By email to the Company info@nepmins.com
Richard Hail (Fox Davies Capital Limited, T: +44 (0) 20 7936 5230
Broker):
Fiona Owen (Grant Thornton UK LLP, Nomad): T: +44 (0) 20 7383 5100
Rozanne Ichikowitz (Grant Thornton, Sydney): T: +61 (0) 2 8297 2522
Nadja Vetter/Sofia Rehman/Matthew Law (Cardew T: +44 (0) 20 7930 0777
Group, PR): T: +44 (0) 7941 340 436
The Neptune Minerals Website is www.neptuneminerals.com
Neptune Minerals Plc
CONSOLIDATED INCOME STATEMENT
Year ended 30 June 2008
Year Year
ended 30 ended 30
June 2008 June 2007
�'000 �'000
Administrative expenses (2,387) (864)
Other operating expenses (26) (13)
Operating loss (2,413) (877)
Investment income 169 228
Loss before taxation (2,244) (649)
Taxation - -
Loss for the period (2,244) (649)
Attributable to:
Equity holders of the Company (2,244) (649)
Loss per share
Basic and diluted (3.4p) (1.1p)
The Group has not yet commenced trading.
The income statement has been prepared on the basis that all
operations are continuing.
Neptune Minerals Plc
CONSOLIDATED BALANCE SHEET
At 30 June 2008
2008 2007
ASSETS �'000 �'000
Non-current assets
Intangible assets 6,680 4,336
Property, plant and equipment 27 17
6,707 4,353
Current assets
Trade and other receivables 57 138
Cash and cash equivalents 1,589 5,927
1,646 6,065
Total assets 8,353 10,418
EQUITY AND LIABILITIES
Capital and reserves
Share capital 331 323
Share premium 11,539 11,119
Share option reserve 819 392
Retained earnings (4,469) (2,460)
Total equity 8,220 9,374
Current liabilities
Trade and other payables 133 1,044
Total liabilities 133 1,044
Total equity and liabilities 8,353 10,418
Neptune Minerals Plc
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
As at 30 June 2008
Share Share Share Retained Total
option Capital Premium Earnings
reserve
�'000 �'000 �'000 �'000 �'000
Balance at 30 392 288 8,789 (1,946) 7,523
June 2006
Exchange
differences on - - - 135 135
translating
foreignoperations
Loss for the (649) (649)
period
Share option - - - - -
benefit
Ordinary shares - 35 - - 35
issued
Premium on shares - - 2,330 - 2,330
issued
Balance at 30 392 323 11,119 (2,460) 9,374
June 2007
Share option -
benefits (47) 47
Exercised
Exchange
differences on
translating - - - 188 188
foreign
operations
Loss for the (2,244) (2,244)
period
Share option 474 - - - 474
benefit
Ordinary shares - 8 - - 8
issued
Premium on shares - - 420 - 420
issued
Balance at 30 819 331 11,539 (4,469) 8,220
June 2008
Neptune Minerals Plc
CONSOLIDATED CASH FLOW STATEMENT
Year ended 30 June 2008
Year ended 30 Year ended 30
June 2008 June 2007
�'000 �'000
OPERATING ACTIVITIES
Operating loss (2,413) (877)
Adjustment for:
Employee share option benefit 474 -
Employee performance share 216 -
benefit
Foreign exchange (20) (194)
Depreciation 26 13
Operating cash flow before (1,717) (1,058)
changes in working capital
Decrease(Increase) in trade and 81 (36)
other receivables
(Decrease)Increase in trade and (910) 890
other payables
Net cash used in operating (2,546) (204)
activities
Investing activities
Purchase of property, plant and (36) (9)
equipment
Payment for exploration and (2,165) (1,581)
evaluation of mineral resources
Net cash used in investing (2,201) (1,590)
activities
Financing activities
Interest received 169 228
Issue of share capital 212 2,530
Cost of share issue - (165)
Net cash from financing 381 2,593
activities
Net (decrease)/increase in cash (4,366) 799
and cash equivalents
Cash and cash equivalents at 5,927 5,197
start of the year
Effect of foreign exchange rate 28 (69)
changes
Cash and cash equivalents at end 1,589 5,927
of the year
Neptune Minerals Plc
Year ended 30 June 2008
1. BASIS OF PREPARATION
The preliminary results were approved by the Board of Directors on 26
November 2008. The financial information set out above does not
comprise the Company's statutory accounts for the year ended 30 June
2008 or 30 June 2007, but is derived from those accounts. The
auditors have reported on the 2007 accounts; their report was
unqualified. The auditors have signed their report on the 2008
accounts. The report is unqualified however an emphasis of matter
regarding going concern and impairment of assets is included. This
emphasis surrounds the Company's ability to raise sufficient funding
for ongoing working capital. The Directors are actively seeking
funding and are confident this will be raised, however there is a
degree of uncertainty regarding this matter.
These preliminary results have been prepared in accordance with the
accounting policies normally adopted by the Company and which are
consistent with those adopted in the audited accounts for the years
ended 30 June 2008 and 30 June 2007. Where relevant the provisions
of International Financial Reporting Standards have been applied in
the preparation of this announcement. The Annual Financial Statements
will be mailed to shareholders on or before 5 December 2008.
2. PRINCIPAL ACTIVITY
The Group's principal activity during the period was the exploration
for SMS deposits in the New Zealand held acreage and the
identification of new SMS environments.
Turnover for the period is �nil.
3. LOSS PER SHARE
The calculation of basic loss per share is based on the loss for the
period attributable to shareholders of the Company of �2,244,000
(2007: �649,000) and the weighted average number of 66,259,636 shares
on issue during the year (2007: 57,857,181 shares).
Diluted loss per share for the year ended 30 June 2008 is equal to
the basic loss per share:-
* Performance shares totalling 1,961,250, which could
potentially dilute basic earnings per share in the future, have
been excluded from the calculation of diluted earnings as they are
considered to be anti-dilutive for the period presented.
* Share options totalling 7,602,472, which could potentially
dilute basic earnings per share in the future, have been excluded
from the diluted earnings per share calculation as they are
considered to be anti-dilutive for the period presented.
4. INTANGIBLE ASSETS
Year ended 2008 Year ended 2007
Exploration and evaluation Exploration and
expenditure evaluation expenditure
�'000 �'000
Group
Cost and net book
value
At 1 July 4,336 2,360
Foreign exchange
difference 179 395
Additions during
the year 2,165 1,581
At 30 June 6,680 4,336
The group commenced active exploration in December 2005 within New
Zealand waters. As at 30 June 2008, the Group owned 100% of
Prospecting Licences ("PL") PL 39-194 (Monowai, 47,110 square
kilometres). PL 39-195 (Kermadec, 3,447 square kilometres) and PL
39-205 (Colville, 13,030 square kilometres). The Company holds 100%
of each licence through Neptune Resources New Zealand Limited.
Also, as at 30 June 2008, the Group owned 100% of eleven Exploration
Licences ("EL") within Papua New Guinea waters, through Neptune
Minerals (PNG) Limited: EL 1425 (Conical, 147.4 square kilometres),
EL 1449 (New World, 30.2 square kilometres), EL 1457 (Dripela
Maunten, 70.4 square kilometres), EL 1458 (Fopela Susa, 72 square
kilometres), EL1541 (Klotsu, 353.2 square kilometres), EL1542 (Namel,
192.0 square kilometres), EL1554 (Makau, 2572.0 square kilometres),
EL1555 (Kindam, 2570.0 square kilometres), EL 15556 (Tinpis, 2573.0
square kilometres), EL1557 (Trosel, 2572.0 square kilometres), EL
15558, (Sak, 2573.0 square kilometres). The Group also owned 100% of
a Foreign Investment Permit ("FIP") in the waters of the Federated
States of Micronesia, FIP-006-07, allowing mineral exploration and
development over an area of 200,000 square kilometres. Active
exploration had not commenced on the Papua New Guinea or Federated
States of Micronesia licences as at 30 June 2008 however desktop
studies have commenced.
The exploration expenditure relates only to mineral exploration
activities in the Kermadec, Monowai and Colville licence areas
specifically vessel charter, seafloor mapping and surveying, sampling
as well as environmental biological studies.
The recoverability of the exploration expenditure is dependent upon
economically recoverable mineral reserves being discovered in the
licence areas and sufficient cash resources being available to enable
the group to complete exploration activity and access those mineral
reserves.
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This announcement was originally distributed by Hugin. The issuer is
solely responsible for the content of this announcement.
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