RNS Number:4275R
Van Dieman Mines plc
20 September 2005
VAN DIEMAN MINES PLC ("VAN DIEMAN" OR "THE COMPANY")
Half-Year Report and Financial Statements
for the period ended 30 June 2005
CHAIRMAN'S STATEMENT
I am pleased to report the Company's progress and interim results for the six
month period ended 30 June, 2005.
Review of Activities
Since the publication of the last annual report, your Board has been working
hard towards achieving startup at the end of this year and full production from
both the Scotia and Endurance mines during the first half of next year.
We are pleased to report that much progress has been made since the tabling of
our annual report in June.
The grant of a mining lease for the Scotia mine was received from the Tasmanian
Minister for Infrastructure, Energy and Resources on 7 July, 2005. The Company
has received notification from the Registrar of Mines that grant of mining lease
documentation for the Endurance mine will be forwarded to the Company for
execution week ending 23 September, 2005. The grant of these leases paves the
way for commencement of mining by the end of the year.
The pilot treatment plant has been commissioned and is being modified to conform
with local requirements prior to commencing the bulk sampling programme to
produce representative samples of mine rough sapphire for evaluation by
potential distributors and jewellery manufacturers in the USA. Tin concentrate
produced from the sampling programme will be sent to the Company's contracted
smelter for preproduction evaluation.
On 6 July 2005, the Company signed a six-year contract with Thailand Smelting
and Refining Co Ltd ("Thaisarco") for the smelting and purchase of its entire
output of tin concentrates from the Company's mining operations. The contract is
based on the LME tin price at the time of delivery of concentrate and, at
current tin prices, the total value of the contract to Van Dieman is some US$60
million.
In June the Company finalised the design of the treatment plants with Goldfield
Engineering and the resulting quotations confirmed budget forecast figures.
The Company's operating headquarters in Gladstone are now in service, providing
office space and limited accommodation. The Company has also purchased a 10 acre
site in Gladstone for its depot and planning application has been lodged for the
construction of the tin cleanup shed and shipping facility.
Results
The consolidated loss on ordinary activities, after tax, for the six month
period was #199,043. This comprises administrative expenses of #262,661 and
interest earned of #63,618. Cash at bank and on hand at the end of the period
totalled #2,266,543.
M.J. Spriggs - Chairman
VAN DIEMAN MINES PLC
CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE SIX MONTHS TO 30 JUNE 2005 - UNAUDITED
30 June 2005 Period from 24
May 2004 to 31
December 2004
# #
TURNOVER
Administrative Expenses
Continuing (262,661) (50,610)
Acquired
business - (515,127)
--------- -----------
(262,661) (565,737)
--------- -----------
OPERATING LOSS
Continuing (262,661) (50,610)
Acquired
business - (515,127)
--------- -----------
(262,661) (565,737)
Interest
received 64,730 6,370
Interest
payable and
similar
charges (1,112)
--------- -----------
LOSS ON ORDINARY ACTIVITIES
BEFORE
TAXATION (199,043) (559,367)
Tax on loss on ordinary activities - -
--------- -----------
LOSS ON ORDINARY ACTIVITIES
AFTER TAXATION (199,043) (559,367)
--------- -----------
RETAINED LOSS
FOR THE PERIOD (199,043) (559,367)
========= ===========
Loss per share
- basic (0.28p) (0.99p)
Loss per share
- diluted (0.27p) (0.97p)
CONTINUING OPERATIONS
All the group's activities consist of
continuing operations.
TOTAL RECOGNISED GAINS AND LOSSES
The group has no recognised gains or losses
other than the loss for the current period
VAN DIEMAN MINES PLC
CONSOLIDATED RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS
30 June 2005 Period from
24 May 2004
to 31 December
2004
# #
Loss for the
period (199,043) (559,367)
Other movements:
New shares issued - 4,618,881
Exchange gain on consolidation of foreign 127,139 115,239
subsidiary --------- ---------
--------- ---------
Total
movements
during the
period (71,904) 4,174,753
--------- ---------
Shareholders'
funds at end
of period (71,904) 4,174,753
========= =========
CONSOLIDATED STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
30 June 2005 Period from
24 May 2004
to 31 December
2004
# #
Loss for the
period (199,043) (559,367)
Exchange gain
on
consolidation
of foreign
subsidiary 127,139 115,239
--------- --------
Total gains
and losses in
period (71,904) (444,128)
========= ========
VAN DIEMAN MINES PLC
CONSOLIDATED BALANCE SHEET
30 JUNE 2005 - UNAUDITED
Period ended
30 June 2005 31 December
2004
# #
FIXED ASSETS
Tangible assets 2,017,399 1,597,680
--------- ---------
2,017,399 1,597,680
--------- ---------
CURRENT ASSETS
Debtors 111,331 69,542
Cash at bank and on hand 2,266,543 2,603,870
--------- ---------
2,377,874 2,673,412
Creditors: Amounts falling due within one year 132,475 96,339
--------- ---------
NET CURRENT ASSETS 2,245,399 2,577,073
--------- ---------
TOTAL ASSETS LESS CURRENT LIABILITIES 4,262,798 4,174,753
--------- ---------
Creditors: Amounts falling due after more than one
year 159,949 -
--------- ---------
4,102,849 4,174,753
========= =========
CAPITAL AND RESERVES
Called up share capital 716,577 716,577
Share premium 3,902,304 3,902,304
Profit and loss account (516,032) (444,128)
--------- ---------
SHAREHOLDERS' FUNDS 4,102,849 4,174,753
========= =========
On behalf of the board:
Director
VAN DIEMAN MINES PLC
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE 6 MONTHS PERIOD TO 30 JUNE 2005 - UNAUDITED
Notes 30 June 2005 Period ended
31 December
2004
# #
NET CASH OUTFLOW FROM OPERATING
ACTIVITIES (253,619) (382,825)
CAPITAL EXPENDITURE AND FINANCIAL
INVESTMENT
Payments to acquire tangible fixed
assets and mining exploration
expenditure (373,200) (85,973)
RETURNS ON INVESTMENTS & SERVICING OF
FINANCE
Interest Receivable 64,730 6,370
Interest Paid (1,112) -
ACQUISITIONS AND DISPOSALS
Fees on acquisition of investment - (6,885)
Net cash acquired with subsidiary
undertaking - 167,138
--------- ---------
- 160,253
--------- ---------
NET CASH OUTFLOW BEFORE FINANCING (563,201) (302,175)
--------- ---------
FINANCING
Issue of ordinary share capital - 2,843,032
Borrowings 225,874 63,013
--------- ---------
225,874 2,906,045
MANAGEMENT OF LIQUID RESOURCES
Decrease/(Increase) in cash on short
term deposits 56,706 (2,275,152)
--------- ---------
(DECREASE)/INCREASE IN CASH (280,621) 328,718
========= =========
RECONCILIATION OF NET CASH FLOW TO MOVEMENT
IN NET FUNDS
(Decrease)/Increase in cash (280,621) 328,718
(Decrease)/Increase in short term
deposits (56,706) 2,275,152
--------- ---------
MOVEMENT IN NET FUNDS (337,327) 2,603,870
NET FUNDS AT BEGINNING OF PERIOD 2,603,870 -
--------- ---------
NET FUNDS AT END OF PERIOD 2,266,543 2,603,870
========= =========
VAN DIEMAN MINES PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS TO 30 JUNE 2005 - UNAUDITED
1. ACCOUNTING POLICIES
Accounting convention
The financial statements have been prepared in accordance with applicable
accounting standards generally accepted in the United Kingdom. These interim
financial statements are unaudited and do not constitute statutory accounts as
defined by Section 240 of the Companies Act 1985.
Application of the going concern basis
In common with many mining companies, the successful outcome of the project is
dependent upon the granting of mining licenses and the Group controlling its
development costs and realizing income from its production in line with its
business plan.
The Group is firmly on track with the process of securing the orderly
development of its principal properties. Applications for mining licenses and
other and other approvals have been lodged and no significant impediments are
anticipated. The directors have prepared profit and cash flow projections which
support the view that the group has adequate financial resources to develop the
existing properties to the point of profitable production without any need for
further fundraising. The directors therefore believe that it is appropriate to
prepare the accounts on a going concern basis.
Comparative information
The company was incorporated on 24 May 2004 and did not commence trading until
15 September 2004, when it acquired all the issued capital of Van Dieman Mines
Pty Ltd. As the group was formed in September 2004, comparatives have not been
provided for the period ended 30 June 2004.
Basis of consolidation
The financial statements consolidate the accounts of Van Dieman Mines plc and
its subsidiary undertakings. The results of subsidiaries are included from the
date of acquisition.
Depreciation
Depreciation is provided on all tangible fixed assets, at rates calculated to
write off the cost, less estimated residual value based on prices prevailing at
the date of acquisition of each asset evenly over its expected useful life as
follows:
Plant and equipment - over 3 to 15 years
Exploration expenditure will be amortised over expected production volumes from
the date production commences.
Deferred Taxation
Deferred taxation is recognised in respect of all timing differences that have
originated at the balance sheet date where transactions or events have occurred
at that date that will result in an obligation to pay more, or a right to pay
less or to receive more tax with the following exceptions:
Provision is made for tax on gains arising from the revaluation (and similar
fair value adjustments) of fixed assets and gains on disposal of fixed assets
that have been rolled over into replacements assets, only to the extent that, at
the balance sheet date, there is a binding agreement to dispose of the assets
concerned. However, no provision is made where, on the bases of all available
evidence at the balance sheet date, it is more likely than not that the taxable
gain will be rolled over into replacement assets and charged to tax only where
the replacements assets are sold.
VAN DIEMAN MINES PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS TO 30 JUNE 2005 - UNAUDITED
1. ACCOUNTING POLICIES - CONTINUED
Deferred tax assets are recognized only to the extent that the directors
consider that it is more likely than not that there will be suitable taxable
profits from which the future reversal of the underlying timing differences can
be deducted.
Deferred tax is measured on an undiscounted basis at the tax rates that are
expected to apply in the periods in which the timing differences reverse, based
on tax rates and laws enacted or substantively enacted at the balance sheet
date.
Foreign currencies
Transactions in foreign currencies are recorded at the rate ruling at the date
of the transaction or at the contracted rate if the transaction is covered by a
forward exchange contract. Monetary assets and liabilities denominated in
foreign currencies are retranslated at the rate of exchange ruling at the
balance sheet date or if appropriate at the forward contract rate and
differences taken to the profit and loss account.
The accounts of overseas subsidiary undertakings are translated at the rate of
exchange ruling at the balance sheet date. The exchange difference arising on
the retranslation of opening net assets are eliminated against reserves. All
other translation differences are taken to the profit and loss account.
Exploration and Evaluation Expenditure
Costs arising from exploration and evaluation activities are carried forward
provided such costs are expected to be recouped through successful development
or by sale or where exploration and evaluation activities have not, at the
reporting date, reached a stage to allow a reasonable assessment regarding the
existence of economically recoverable reserves.
Costs are not carried forward where the directors believe the recovery of those
assets is not probable.
Cost carried forward in respect of an area of interest that is abandoned are
written off in the period in which the decision to abandon is made.
2. LOSS PER SHARE
30 June 2005 Period ended
31 December
2004
# #
Loss per share - basic (0.28p) (0.99p)
Loss per share - diluted (0.27p) (0.97p)
========== ==========
The calculation of basic loss per share is based on a loss for the period of
#199,043 and on 71,657,663 ordinary shares, being the weighted average number of
ordinary shares on issue during the period.
The diluted loss per share assumes dilutive share options are converted into
ordinary shares. The calculation is as follows:
Loss Share
# No
Basic loss (199,043) 71,657,663
Diluted effects - options 1,180,000
---------- ----------
Diluted loss (199,043) 72,837,663
========== ==========
VAN DIEMAN MINES PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS TO 30 JUNE 2005 - UNAUDITED
3. NOTES TO THE STATEMENT OF CASH FLOWS
(a) Reconciliation of operating loss to net cash flow
Period ended
30 June 2005 31 December
2004
# #
Operating loss (262,661) (565,737)
(Increase) in debtors (22,075) (21,375)
Increase in creditors 21,995 195,185
Depreciation 9,122 9,102
--------- ---------
(253,619) (382,825)
========= =========
(b) Analysis of changes in net funds
31 December 2004 Cash Flows Other At 31 December
2004
Non-Cash
Movements
# # #
Cash 328,718 - 328,718
Short term deposits 2,275,152 - 2,275,152
-------- --------- ----------
Total 2,603,870 - 2,603,870
======== ========= ==========
30 June 2005 Cash Flows Other 30 June 2005
Non-Cash
Movements
# # #
Cash 48,097 - 48,097
Short term deposits 2,218,446 - 2,218,446
-------- --------- ---------
Total 2,266,543 - 2,266,543
======== ========= =========
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR FKLFFEKBBBBE
Van Dieman Mines (LSE:VDM)
Historical Stock Chart
From Jun 2024 to Jul 2024
Van Dieman Mines (LSE:VDM)
Historical Stock Chart
From Jul 2023 to Jul 2024
