Annual Report and Accounts

RNS Number : 6528K

Bezant Resources PLC

23 December 2008

 

23 December 2008

Bezant Resources Plc

(“Bezant” or the “Company”)

Final Results for 30^th June 2008

Highlights

Mankayan Copper-Gold project, Philippines :

 

·      JORC compliant Inferred Resource 0.4 per cent. copper cut-off of approximately 277.7 million tonnes grading at 0.50% copper and 0.42 g/t gold.

·      Containing approximately 3.06 billion pounds (1.39 million tonnes) of copper and 3.8 million ounces of gold within Inferred Resource.

Tanzania :

·      Anglo Tanzania Gold Limited, had completed its 46 per cent. earn-in in respect of the “Mkurumu Project” in Tanzania, with Anglo Gold Ashanti retaining a similar 46 per cent. and the remaining 8 per cent. being held by indigenous Tanzanian locals. 

·      Acquired package consisting of 9 highly prospective tenements with Prospecting Licences.

Corporate :

·      £3.71 million cash in Bank at the period end.

·      Mr. Ronnie Siapno and Dr Evan Kirby appointed to Board.

·      As a consequence of exploration activities during the period, the Company incurred a loss after tax (but before impaired investments expensed) for the financial year ended 30 June 2008 of £910,000. Impaired investments expensed totalled £5,985,000 for the year.

Events subsequent to the results period:

·      Mankayan- currently near completion of 11,000 metre (ten hole) drilling programme.

·      Appointment of Matrix Corporate Capital LLP as sole Broker to the Company.

Commenting today Gerry Nealon, Executive Chairman of the Company said: 'Bezant's core Mankayan Project is well on its way to firming up an indicated resource with the potential to generate a world class mine when compared to its peers, situated in the area of Luzon in the northern Philippines. These peers serve to clearly demonstrate the will, stability, port access and infrastructure that exists to support further major mining developments in the Philippines. We look forward to announcing results from the drilling early in 2009.

For further information, please contact:

Gerry Nealon

Executive Chairman, Bezant Resources Plc

Tel: [phone]

Bernard Olivier

Executive Director, Bezant Resources Plc

Tel: [phone]

James Harris / Matthew Chandler

Strand Partners Limited

Tel: [phone]

Laurence Read

Threadneedle Communications (UK)

Email: [e-mail]

Tel: [phone]

Mob: [phone]

or visit http://www.bezantresources.com

Chairman's Statement :

It is with pleasure that I am able to report to our shareholders upon the further progress made by the Company during the last financial year. In short, this relates to a strong cash position and the excellent work of our on-site team in the Philippines, which continues to firm up on the potential of our flagship 'Mankayan Project' as a world class copper-gold deposit. I firmly believe that the Company's recent poor share price performance fails to reflect our aforementioned progress, with investor sentiment largely being driven by the political and financial market turmoil that has emanated from the well documented US sub-prime banking crisis and which has given rise to almost unprecedented volatility in the world's major stock markets.

The Board has always sought to apply the Company's core skill sets of evaluation, analysis and understanding of mineralisation to world class projects with strong potential to increase shareholder value. Accordingly, the Company carefully assessed the capability of many different locations for hosting copper-gold resources of well over 100 million tonnes, before acquiring the Mankayan Project in the Philippines in July 2007 with historical drilling data indicating a resource in the order of 166 million tonnes, relating to 1.9 billion pounds of contained copper and 2.9 million ounces of gold. In July 2008, the Company announced the outcome of its digitisation of this historic data, with Snowden Mining Industry Consultants Pty. Limited ('Snowden') confirming a JORC compliant Inferred Resource at a 0.4 per cent. copper cut-off of approximately 277.7 million tonnes grading at 0.50% copper and 0.42 g/t gold. This independent resource estimate serves to support the Company's belief that the Mankayan Project represents a world-class deposit, containing approximately 3.06 billion pounds (1.39 million tonnes) of copper and 3.8 million ounces of gold within the Inferred Resource. Our on-site team is currently completing the seventh and eighth holes in our 11,000 metre (ten hole) drilling programme, that commenced in September 2007 and Snowden have commented that they are confident that the Company should be in a position to upgrade various areas of the deposit to an Indicated Resource as a result of this ongoing work and further consolidation of the historical data, in early 2009. 

During November 2007, the Company announced that its wholly owned subsidiary, Anglo Tanzania Gold Limited, had completed its 46 per cent. earn-in in respect of the 'Mkurumu Project' in Tanzania, with Anglo Gold Ashanti retaining a similar 46 per cent. and the remaining 8 per cent. being held by indigenous Tanzanian locals. In May 2008, the Company announced the signing of a memorandum of understanding to further expand upon its gold exploration activities in Tanzania, relating to the acquisition of a 50 per cent. interest in certain tenements via a two year earn-in arrangement. The package consists of 9 highly prospective tenements together with Prospecting Licences covering, in aggregate, some 2,116 square kilometres and an additional 3 applications for either new licences or renewals, covering approximately a further 455 square kilometres. First pass reconnaissance work to date, including satellite imagery and airborne geophysical surveys, has identified several drainage channels that contained free gold. Systematic heavy mineral drainage and rock sampling work is currently underway at the tenements and I look forward to announcing further news throughout 2009. In light of the Company's relatively strong cash position, we are well positioned to continue with our intended work programmes, leading to the completion of our current mining feasibility studies in the Philippines and the flexibility to continue with our exploration studies in Tanzania respectively.

As a consequence of exploration activities during the period, the Company incurred a consolidated loss after tax (but before impaired investments expensed) for the financial year ended 30 June 2008 of £910,000.  Impaired investments expensed totalled £5,985,000 for the year.

A number of Board changes were effected throughout the reporting period, primarily in line with the Company's re-positioning to implement a more aggressive exploration programme in the Philippines. It was a pleasure to announce the appointment of Mr. Ronnie Siapno and Dr. Evan Kirby, both of whom have considerable experience throughout the mining industry. Mr. Clive Sinclair-Poulton, Ms. Melissa Sturgess and Mr. Mark Burchnall stepped down from the Board to pursue their other work commitments and the Company acknowledges their significant contributions towards its successful transition from being an investment company, to that of a fully funded copper-gold exploration / development company.

Mr. Tony Hopkins also retired from the Board towards the end of last year and it was with the deepest regret that we learned of his passing following continued ill health, during February of this year. Tony was almost an institution throughout the world of Geology, particularly in relation to that of Africa and specifically that of Tanzania. He will be sadly missed and our sympathies go out to his wife and family.

In closing, I wish to return to the matter of our recent share price performance, against a back-drop of unprecedented turmoil in global financial markets. A number of market commentators have suggested that the supply of resource commodities will be far more severely curtailed than demand growth, whereby China and India may continue to grow during a period when new copper and gold mines are not being brought into production sufficiently fast enough, to meet such continued expansion. I cannot offer any panacea to the global financial crisis, but can re-iterate that the Company has excellent ongoing projects that are fully funded. The core 'Mankayan Project' is well on its way to firming up a resource with the potential to generate a world class mine, when compared to its peers in the area throughout Luzon in the northern Philippines. These peers serve to clearly demonstrate the will, stability, port access and infrastructure that exists to support further major mining developments in the Philippines.

Most recently, the Board was pleased to announce the appointment of Matrix Corporate Capital LLP as sole Broker to the Company. Working with Matrix, I remain sincerely optimistic with regards to our ability to attract more positive investor sentiment towards the Company and look forward to announcing further significant results and developments from our Mankayan Project in the year ahead.

Gerard A Nealon

Executive Chairman                    

Consolidated income statement

For the year ended 30 June 2008

			2008	2007
	Notes		£’000	£’000
				(as restated)
Consolidated turnover			-	-
Cost of sales			-	-
Gross profit			-	-
Administrative expenses	3		(1,090)	(551)
Impairment expenses	4		(5,985)	-
Consolidated operating loss	5		(7,075)	(551)
Interest receivable	6		180	34
Interest payable	7		-	-
Loss on ordinary activities  before taxation			(6,895)	(517)
Taxation	8		-	-
Loss on ordinary activities  after taxation			(6,895)	(517)
Loss for the period			(6,895)	(517)
Loss per share - pence
Basic	9		(18.66p)	(2.50p)
Diluted	9		(18.69p)	(2.66p)

Statement of changes in equity

For the year ended 30 June 2008

	Share Capital £’000	Share Premium £’000	Other Reserves £’000	Accumulated Losses £’000	Total Equity £’000
Consolidated
Balance at 1 July 2007	987	10,576	686	(5,603)	6,646
Share issues	29	11,742	-	-	11,771
Share issue costs	-	(414)	-	-	(414)
Reversal of placement funds received in advance	-	-	(665)	-	(665)
Cost of share-based payments	-	-	136	-	136
Current year loss	-	-	-	(6,895)	(6,895)
Foreign currency reserve	-	-	8	-	8
Balance at 30 June 2008	1,016	21,904	165	(12,498)	10,587

Consolidated
Balance at 1 July 2006	958	4,180	-	(5,086)	52
Share issues	29	7,032	-	-	7,061
Share issue costs	-	(636)	-	-	(636)
Cost of share-based payments	-	-	6	-	6
Placement funds received in advance	-	-	665	-	665
Current year loss	-	-	-	(517)	(517)
Foreign currency reserve	-	-	15	-	15
Balance at 30 June 2007	987	10,576	686	(5,603)	6,646

Statement of changes in equity

For the year ended 30 June 2008

	Share Capital £'000	Share Premium £'000	Other Reserves £'000	Accumulated Losses £'000	Total  Equity £'000
Company Balance at 1 July 2007	987	10,576	671	(5,515)	6,719
Share issues	29	11,742	-	-	11,771
Share issue costs	-	(414)	-	-	(414)
Reversal of placement funds received in advance	-	-	(665)	-	(665)
Cost of share-based payments	-	-	136	-	136
Current year loss	-	-	-	(6,912)	(6,912)
Foreign currency reserve	-	-	-	-	-
Balance at 30 June 2008	1,016	21,904	142	(12,427)	10,635
Company
Balance at 1 July 2006	958	4,180	-	(5,086)	52
Share issues	29	7,032	-	-	7,061
Share issue costs	-	(636)	-	-	(636)
Cost of share-based payments	-	-	6	-	6
Placement funds received in advance	-	-	665	-	665
Current year loss	-	-	-	(429)	(429)
Foreign currency reserve	-	-	-	-	-
Balance at 30 June 2007	987	10,576	671	(5,515)	6,719

Balance sheet

As at 30 June 2008

			Consolidated		Company
			2008	2007	2008	2007
	Notes		£’000	£’000	£’000	£’000
				(as restated)
ASSETS
Current assets
Trade and other receivables	13		7	196	7	191
Cash at bank and in hand			3,713	1,625	3,673	1,616
Total current assets			3,720	1,821	3,680	1,807
Non-current assets
Intangible assets - goodwill	14		-	4,500	-	-
Plant and equipment	15		32	4	29	3
Investment in subsidiary	16		-	-	-	4,500
Investments	16		6,846	458	6,889	475
Deferred exploration and evaluation costs	17		149	-	149	-
Total non-current assets			7,027	4,962	7,067	4,978
TOTAL ASSETS			10,747	6,783	10,747	6,785
LIABILITIES
Current liabilities
Trade and other payables	18		160	137	112	66
Total current liabilities			160	137	112	66
NET ASSETS			10,587	6,646	10,635	6,719
CAPITAL AND RESERVES
Called up share capital	20		1,016	987	1,016	987
Share premium account	20		21,904	10,576	21,904	10,576
Share based payment reserve	22		142	6	142	6
Other reserves	22		23	680	-	665
Accumulated losses	22		(12,498)	(5,603)	(12,427)	(5,515)
TOTAL EQUITY			10,587	6,646	10,635	6,719

Cash flow statement

For the year ended 30 June 2008

			Consolidated		Company
			2008	2007	2008	2007
	Notes		£’000	£’000	£’000	£’000
Net cash outflow from operating activities	24		(974)	(505)	(890)	(483)
Cash flows from investing activities
Interest received			180	34	179	34
Other income			73	-	73	-
Payments for plant and equipment			(32)	(5)	(29)	(4)
Payments to fund exploration			(149)	(458)	(149)	-
Payments to acquire investment in associate			(500)	-	(500)	-
Loans to associates and subsidiaries			(605)	-	(748)	(475)
Payments to acquire available-for-sale investments			(200)	-	(200)	-
Payments for joint venture expenditure			(35)	-	-	-
Net cash outflow from investing activities			(1,268)	(429)	(1,374)	(445)
Cash flows from financing activities
Cash proceeds from issue of shares			4,335	2,561	4,335	2,561
Placement funds received in advance			-	665	-	665
Share issue costs			(26)	(688)	(26)	(688)
			4,309	2,538	4,309	2,538
Increase/(Decrease) in cash			2,067	1,604	2,045	1,610
Cash and cash equivalents at beginning of year			1,625	3	1,616	3
Foreign exchange movement			21	18	12	3
Cash and cash equivalents at end of year			3,713	1,625	3,673	1,616

NOTES TO THE FINANCIAL INFORMATION

FOR THE YEAR ENDED 30 JUNE 2008

1.	Basis of preparation
	The financial information, which incorporates the financial information of the Company and its subsidiary undertakings (the 'Group'), has been prepared using the historical cost convention and in accordance with the International Financial Reporting Standards ('IFRS') including IFRS 6 'Exploration for and Evaluation of Mineral Resources', as adopted by the European Union ('EU') for the first time.
	The financial information contained in this announcement does not constitute full statutory accounts within the meaning of Section 240 of the Companies Act 1985. The figures are extracted from the audited full financial statements for the year ended 30 June 2008 which will be filed with the Registrar of Companies.

2.	Loss per share
	The basic and diluted loss per share have been calculated using the loss for the 12 months ended 30 June 2008 of £6,895,000 (2007: £517,000). The basic loss per share was calculated using a weighted average number of shares in issue of 36,944,824 (2007: 20,714,489). The diluted loss per share has been calculated using an additional weighted average number of shares in issue and to be issued of 36,890,621 (2007: 22,912,289).

3.	Share capital
	Number	Class	Nominal value	Year ended 30 June 2008	Year ended 30 June 2007
				£’000	£’000
	Authorised
	690,432,500	Ordinary	0.2p	1,381	1,381
	7,959,196	Deferred	4p	319	319
	625,389	Deferred	99p	619	619
				2,319	2,319
	Allotted, called up and fully paid
	39,162,223 (2007: 24,524,345)	Ordinary	0.2p	78	49
	7,959,196	Deferred	4p	319	319
	625,389	Deferred	99p	619	619
				1,016	987
					Number of shares
	The movement in the share capital is summarised below:
	As at 1 July 2007				24,524,345
	10 July 2007 – Acquisition shares issued				5,454,545
	10 July 2007 – Subscription shares issued				6,666,667
	10 July 2007 – Fee Shares issued for services rendered				516,666
	6 May 2008 – Acquisition shares issued				2,000,000
	As at 30 June 2008				39,162,223

4.	Statement of movement on reserves
	Group	Share-based payment reserve	Foreign exchange reserve	Other reserve  – for own shares	Accumulated losses
		£’000	£’000	£’000	£’000
	At 1 July 2007	6	15	665	(5,603)
	Cost of share-based payments	136	-	-	-
	Shares issued	-	-	(665)	-
	Current year loss	-	-	-	(6,895)
	Currency translation differences on foreign operations	-	8	-	-
	At 30 June 2008	142	23	-	(12,498)

5.	Reconciliation of movements in shareholders’ funds
		Consolidated		Company
		2008	2007	2008	2007
		£’000	£’000	£’000	£’000
	Loss for the period	(6,895)	(517)	(6,912)	(429)
	Shares issued less costs	11,357	6,425	11,357	6,425
	Placement funds received in advance	(665)	665	(665)	665
	Currency translation differences on  foreign currency operations	8	15	-	-
	Cost of share-based payments	136	6	136	6
	Opening shareholders’ funds	6,646	52	6,719	52
		10,587	6,646	10,635	6,719

6.	Reconciliation of operating loss to net cash outflow from operating activities
		Consolidated		Company
		2008	2007	2008	2007
		£’000	£’000	£’000	£’000
	Group operating loss	(6,895)	(517)	(6,912)	(429)
	Depreciation and amortisation	4	1	3	1
	Interest income	(180)	(34)	(179)	(34)
	Share-based payment charge	136	6	136	6
	VAT refunds received	(73)	49	(73)	49
	Impairment in investments	5,985	-	6,068	-
	Forex loss	(12)	-	(12)	-
	Decrease/(Increase) in debtors	38	(98)	33	(93)
	Increase in creditors	23	88	46	17
	Net Cash outflow from operating activities	(974)	(505)	(890)	(483)

Copies of the Annual Report & Financial Statements are expected to be posted on 23 December 2008 to those shareholders who have elected to receive hard copy shareholder communications from the Company and will also be available to download from the Company's website at www.bezantresources.com

The Annual Report will also be made available for inspection at the Company's registered office during normal business hours on any weekday. Bezant Resources Plc is registered in England and Wales with registered number 2918391. The registered office is at Quadrant House, Floor 6, 17 Thomas More Street, Thomas More Square, London E1W 1YW.

 

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