Half Yearly Report

RNS Number : 4695J

Regency Mines PLC

31 March 2010

 



Regency Mines plc

Half-yearly report - six months ended 31 December 2009

31 March 2010

Regency Mines plc ("Regency" or the "Company") the mineral exploration and development company focused on exploring areas of copper and nickel potential in Western Australia, Queensland, and Papua New Guinea, announces its unaudited half-yearly results for the six months ended 31 December 2009.

Chairman's statement

Dear Shareholders,

The interim group pretax profit of £388,164 (2008 interim loss: £1,408,136) included £634,001 share of profits in associates, reflecting associate profits from our substantial shareholding in Red Rock Resources plc ("Red Rock").  Red Rock's results in the comparable period last year had been affected by a deficit on revaluation of available for sale investments as a result of poor conditions in financial markets and the mining sector.

Comprehensive income for the period showed a profit of £649,379 and included a surplus on revaluation of available for  sale financial assets and a share in the comprehensive income of red Rock.

Shareholders' equity increased by 252.8% year on year to £4,063,284 (2008 £1,151,862) and by 48.4% since 30 June 2009. This reflected an increase in the value of Investments in Associates, but also rises in the carrying value of available for sale financial assets and exploration properties. The year on year rise in the value of exploration properties was affected by a write back at 2009 financial year end of exploration expenditure provisionally written off at the interim stage last year. At that time nickel prices were hitting their lows and pessimism about the world economy was at an extreme, and it seemed appropriate to assume that there might have been no value in exploration carried out. The recovery in nickel prices and in stainless steel demand by the financial year end, which has continued since, meant that at the time of audit no provision was deemed necessary.

Assessment of the Mambare nickel project has continued, and we are working closely with our partners at Direct Nickel Pty Ltd on structuring the next steps. We await the imminent release of new geophysical data by the Papua New Guinea Government, following which we will embark on the next stage of exploration.

An initial drill programme at our Western Australian tenements in the Lake Johnstone greenstone belt has begun, and the first phase, involving 2,600m of drilling on two targets, has been completed. This follows an extensive geophysical investigation, and is initially concentrated on priority targets under cover at the intersection of the greenstone belt and the cross-cutting Jerdacuttup fault which forms part of the terrane boundary hosting the major Tropicana gold discovery. The programme targets potential gold and nickel mineralisation, and initial encouraging indications are that the geological boundary has been found and the right type of rocks are present. Regency awaits sampling results.

The Company has acquired a number of promising tenements in Western Australia and is reviewing its extensive portfolio with a view to optimising value by joint venture, disposal,  exploration, or otherwise. Regency continuously reviews opportunities, but as it believes in the long term investment fundamentals for nickel, its core commodity, the environment for which is now improving, it expects to retain a focus on this metal. The Company will be kept busy in the coming months by its nickel projects, but not to the exclusion of enterprise and activity on other fronts.   

We look to the remaining months of our financial year with considerable confidence. We believe the prospects for Red Rock are exceptional, and expect to have developments of our own to announce.

Andrew Bell

Chairman

31 March 2010

Change of Name of Nominated Adviser

The Company also announces that Blomfield Corporate Finance Limited, the Company's Nominated Adviser has changed its name to Religare Capital Markets (UK) Limited - trading as Religare Capital Markets.

For further information contact:

Andrew Bell	0207 402 4580  07766 474849	Regency Mines plc	Chairman
Peter Trevelyan-Clark/Ben Jeynes	020 7444 0800	Religare Capital Markets	Nominated Adviser
Nick Emerson	01483 413500	Simple Investments Ltd	Broker
Ron Marshman	020 7011 9411	Lothbury Financial Ltd	Public Relations

Updates on the Company's activities are regularly posted on its website www.regency-mines.com.

Income statement

		Group 6 months to  31 December  2009	Group 6 months to  31 December  2008	Group Year to 30 June  2009
		Unaudited £	Unaudited £	Audited £
Revenue Sales of investments Cost of sales Management services		- - 19,027	131,256 (146,799) 30,733	131,256 (146,799) 58,046
Gross profit Exploration expenses		19,027 (5,729)	15,190 (510,232)	42,503 (132,691)
Administrative expenses Currency gain/(loss)		(256,436) 404	(150,738) (31,227)	(365,556)  (48)
Operating loss		(242,734)	(677,007)	(455,792)
Share of profit/(loss) in associates  Deficit on revaluation of financial assets Interest receivable Interest payable		634,001 - 622 (3,725)	(628,825) - (107,514) 5,261 (51)	(271,327) - 10,988 (791)
Profit/(loss) on ordinary activities before taxation		388,164	(1,408,136)	(716,922)
Taxation		-	-	-
Profit/(loss) after taxation Minority interests		388,164 -	(1,408,136) -	(716,922) -
Retained profit/(loss) attributable to Shareholders		388,164	(1,408,136)	(716,922)
Earnings/(loss) per share - see note 3 Basic Diluted		0.10 pence 0.10 pence	(0.60) pence (0.60) pence	(0.27) pence (0.60) pence

All operations are considered to be continuing.

Statement of comprehensive income

		Group 6 months to  31 December  2009	Group 6 months to  31 December  2008	Group Year to 30 June  2009
		Unaudited £	Unaudited £	Audited £
Surplus/(loss) on revaluation of available for sale financial assets Share of other comprehensive income of associates		96,369 180,325	- -	(82,963) 342,571
Unrealised currency (loss)/gain		(15,479)	-	113,372
Surplus recognised directly to equity Profit/(loss) for the financial period		261,215 388,164	- (1,408,136)	372,980 (716,922)
Total comprehensive income for the financial period		649,379	(1,408,136)	(343,942)

Statement of financial position

		Group 31 December 2009	Group 31 December 2008	Group  30 June  2009
		Unaudited £	Unaudited £	Audited £
Assets
Non-current assets Tangible assets Investments in associates Goodwill		13,381 1,619,935 43,507	15,932 466 77,715	10,396 725,535 45,000
Total non-current assets		1,676,823	94,113	780,931
Current assets Cash and cash equivalents Trade and other receivables Available for sale financial assets Exploration properties		126,217 211,602 571,596 1,772,508	47,488 211,459 143,531 860,514	203,559 167,162 219,584 1,593,820
Total current assets		2,681,923	1,262,992	2,184,125
Total assets		4,358,746	1,357,105	2,965,056
Equity and liabilities Current liabilities Trade and other payables		295,462	205,243	226,155
Total liabilities		295,462	205,243	226,155

Equity Called up share capital Share premium account Other reserves Retained losses		396,129 4,407,261 867,919 (1,608,025)	245,741 3,283,270 347,199 (2,742,348)	352,808 3,775,578 606,704 (1,996,189)
Total equity		4,063,284	1,151,862	2,738,901
Total equity and liabilities		4,358,746	1,357,105	2,965,056

Statement of cash flows  

		Group 6 months to  31 December  2009	Group 6 months to  31 December  2008	Group Year to 30 June  2009
		Unaudited £	Unaudited £	Audited £
Cash flows from operating activities
Operating loss Decrease/(increase) in receivables Increase/(decrease) in payables Impairment of exploration properties Depreciation of fixed assets Cost of available for sale investments disposed of Payments to acquire available for sale investments Exploration property costs Share based payments Currency adjustments		(242,734) (44,440) 69,309 - 1,898 - -  (203,647) - 11,280	(677,007) 83,880 128,021 93,067 4,489 146,800 -  (8,069) - (28,059)	(455,792) 128,177 148,932 51,587 9,470 - -  (590,100) 4,756 2,687
Cash outflow generated from operations		(408,334)	(257,328)	(700,283)
Cash flows from investing activities Interest received Interest paid Payments to acquire fixed assets Payments to acquire associate company investments Payments to acquire available for sale investments Proceeds from sale of available for sale investments		622 (3,725)  (5,191) (80,075) (255,643) -	5,261 (51) (4,215) (150,000) - -	10,988 (791) (5,305) (175,000) (76,510) 146,799
Net cash flows used in investing activities		(344,012)	(149,005)	(99,819)
Acquisitions and disposals Purchase of subsidiary		-	(32,715)	(82,250)
Net cash outflow from acquisitions and disposals		-	(32,715)	(82,250)
Cash inflows from financing activities Proceeds from issue of shares Transaction costs of issue of shares		782,552 (107,548)	322,500 (16,125)	942,000 (36,250)
Net cash flows from financing activities		675,004	306,375	905,750
Net (decrease)/increase in cash and cash equivalents		(77,342)	(132,673)	23,398
Cash and cash equivalents at the beginning of period		203,559	180,161	180,161
Cash and cash equivalents at end of period		126,217	47,488	203,559

Consolidated Statement of changes in equity

For the period ended 31 December 2009

	Share capital	Share premium	Retained earnings	Other  reserves	Total equity
	£	£	£	£	£
At 30 June 2008	219,941	3,002,695	(1,279,267)	310,255	2,253,624
Issue of shares Share issue and fundraising costs Share based payments Consolidation reserve adjustment Total comprehensive income for the financial period	132,867 - - - -	809,133 (36,250) - - -	- - - - (716,922)	- - 4,756 (81,287) 372,980	942,000 (36,250) 4,756 (81,287) (343,942)
At 30 June 2009	352,808	3,775,578	(1,996,189)	606,704	2,738,901
Issue of shares Share issue and fundraising costs Total comprehensive income for the financial period	43,321 - -	739,231 (107,548) -	- - 388,164	- - 261,215	782,552 (107,548) 649,379
At 31 December 2009	396,129	4,407,261	(1,608,025)	867,919	4,063,284

Half-yearly report notes

1.    Company and Group

As at 30 June 2009 and 31 December 2009, the Company had one or more operating subsidiaries and has therefore prepared full and interim consolidated financial statements respectively.

The Company will report again for the year ending 30 June 2010.

The financial information contained in these interim financial statements does not constitute statutory accounts as defined in section 435 of the Companies Act 2006. The financial information for the year ended 30 June 2009 has been extracted from the statutory accounts for the Group for that year. Statutory accounts for the year ended 30 June 2009, upon which the auditors have given an unqualified audit report and did not contain a statement under Section 498(2) or (3) of the Companies Act 2006, have been filed with the Registrar of Companies.

2.   Accounting policies

Accounting policies adopted under IFRS

These interim financial statements have been prepared in accordance with International Financial Reporting Standards as adopted by the European Union ("IFRS").

The consolidated interim financial information has been prepared in accordance with IAS34 'Interim Financial Reporting'.  The condensed interim financial information should be read in conjunction with the annual financial statements for the year ended 30 June 2009, which have been prepared in accordance with IFRSs.

3.   Earnings per share

		6 months to  31 December  2009	6 months to  31 December  2008	Year to 30 June  2009
		Unaudited £	Unaudited £	Audited £
These have been calculated on a earnings/(loss) of:		388,164	(1,408,136)	(716,922)
The weighted average number of shares used was:		382,375,603	234,383,053	267,140,662
Basic earnings/(loss) per share:		0.10 pence	(0.60) pence	(0.27) pence
The weighted average number of shares inclusive of outstanding options was:		400,375,603	234,383,053	267,140,662
Diluted earnings/(loss) per share:		0.10 pence	(0.60) pence	(0.27) pence

4.   Segmental information

The Group's primary business segment is mineral exploration.  The Group operates within three principal geographical segments, the United Kingdom, Australia and Papua New Guinea (PNG).

The following tables present revenue and loss information and certain asset and liability information by geographical segment.

For the six month period ended 31 December 2009

		United Kingdom	Australia	PNG	Total
		£	£	£	£
Revenue Total segment revenue		-	-	-	-
Total consolidated revenue					- _______
Result Segment results		(214,166)	(17,513)	(11,055)	(242,734)
Loss before tax and finance costs Interest receivable Interest payable Share of profit of associates Profit before taxation Taxation expense Net profit for the period					(242,734) _______ 622 (3,725) 634,001 _______ 388,164 - _______ 388,164 _______

As at 31 December 2009

		United Kingdom	Australia	PNG	Total
		£	£	£	£
Assets and liabilities Segment assets		3,000,248	257,264	1,101,234	4,358,746
Total assets					4,358,746 _______
Segment liabilities		(240,205)	(10,645)	(44,612)	(295,462)
Total liabilities					(295,462) _______

For the year ended 30 June 2009

		United Kingdom	Australia	PNG	Total
		£	£	£	£
Revenue Total segment revenue		162,188	27,114	-	189,302
Total consolidated revenue					189,302 _______
Result Segment results		(677,893)	(25,139)	(24,087)	(727,119)
Loss before tax and finance costs Interest receivable Interest payable Loss before taxation and minority interests Taxation expense Net loss for the year					(727,119) _______ 10,988 (791) _______ (716,922) - _______ (716,922) _______

As at 30 June 2009

		United Kingdom	Australia	PNG	Total
		£	£	£	£
Assets and liabilities Segment assets		1,284,097	611,786	1,069,173	2,965,056
Total assets					2,965,056 _______
Segment liabilities		(144,822)	(3,631)	(77,702)	(226,155)
Total liabilities					(226,155) _______

Copies of the half-yearly report are available free of charge by application in writing to the Company Secretary at the Company's business office, 115 Eastbourne Mews, Paddington, London W2 6LQ, on the Company's website (www.regency-mines.com), or by email to [e-mail].

 

END

 

 

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