Interim Results

RNS Number : 5333C

Ovoca Gold PLC

02 September 2008

 



INTERIM RESULTS

Tuesday, 2 September 2008

Ovoca Gold Plc (AIM: OVG; IEX:OVX; OVX:GR) ('Ovoca' or 'the Company') is pleased to report its interim, unaudited, results for the six months ended 30 June 2008.

Highlights

Goltsovoye

• Bank Feasibility Study completed in Q1 of 2008

• 260,000 tonnes of ore a year underground mine and process plant designed to produce 6.4 million ounces of silver in the early life of the mine

• Road and infrastructure construction started and man camp in place

• Public hearings successfully held

• Non-binding project finance term sheet signed in July for $ 92.7m in July 2008

Kola

• World class molybdenum/copper ore body discovered at Pellapakh

• 132 million tonne resource at 0.06% molybdenum equivalent grade (79,200 tonnes of contained molybdenum) comparable to major producers of the world

• Major drill programme completed with some assay results still awaited

• Geostatistical resource estimate to be upgraded on receipt of outstanding assays and on completion of the next stage infill drilling programme

•  Deposit close to infrastructure - 50 kilometres from a power station - 160 kilometres from a large seaport - 90 kilometres from the nearest railroad station 

• Current molybdenum price at US$74,000 per tonne and rising means tremendous potential for Ovoca

Commenting on the half years results, Ovoca Gold's CEO, Leonid Skoptsov, said ' The Goltsovoye project is moving ahead with the detailed engineering nearing completion and the project finance due diligence process well underway. We are looking forward to closing the project finance in the near future and moving to appoint the lead construction and mining contractors as soon as possible. Work in Kola has been ongoing and the drilling results to-date indicates a world class molybdenum and copper ore body. Additional assay results are awaited and will be processed as soon as they are received. The next half year should see significant progress towards achieving production'.

OVOCA GOLD plc
Group Income statement for the six months ended 30 June 2008
						30 June		30 June
						2008		2007
						Euro		Euro
Administrative expenses						(602,631)		(397,784)
Operating loss						(602,631)		(397,784)
Interest receivable and similar income						4,580		25,813
Loss for the year before tax						(598,051)		(371,971)
Taxation
Loss for the year						(598,051)		(371,971)
Earnings per share
Basic Loss per ordinary share						(0.14 Cent)		(0.25 Cent)
Diluted loss per ordinary share						(0.13 Cent)		(0.22 Cent)
OVOCA GOLD plc
Group Statement of Changes in Equity for the six months ended 30 June 2008
			Share			Share	Share based	Other	Retained	Total
			Capital			Premium	payment	reserves	Losses
			Euro			Euro	Euro	Euro	Euro	Euro
Balance at 1 January 2007			7,942,025			34,349,541	520,436	11,482	(12,032,227)	30,791,257
Loss for the period			-			-	-	-	(371,971)	(371,971)
Proceeds of share issue			5,625			31,500	-	-	-	37,125
Balance at 30 June 2007			7,947,650			34,381,041	520,436	11,482	(12,404,198)	30,456,411
Balance at 1 January 2008			10,824,326			47,585,750	520,436	11,482	(12,886,763)	46,055,231
Loss for the period			-			-	-	-	(598,051)	(598,051)
Proceeds of share issue			127,500			221,751	-	-	-	349,251
Balance at 30 June 2008			10,951,826			47,807,501	520,436	11,482	(13,484,814)	45,806,430

OVOCA GOLD plc
	Group Balance Sheet
		30 June		30 June
		2008		2007
		Euro		Euro
Fixed Assets
	Intangible Assets	42,844,881		29,504,995
	Property, plant and equipment	2,176,280		182,747
		45,021,161		29,687,742
Current Assets
	Trade and other receivables	970,553		443,452
	Cash and cash equivalents	1,096,767		1,014,586
		2,067,320		1,458,038
Total Assets		47,088,481		31,145,780

Equity and Liabilities
Equity
	Called up share capital	10,951,826		7,947,650
	Share premium	47,807,501		34,381,041
	Other reserves	11,482		11,482
	Share Based Payment Reserve	520,436		520,436
	Profit & loss account	(13,484,814)		(12,404,198)
		45,806,431		30,456,411
	Minority Interests	1		38,225
		45,806,432		30,494,636
Current Liabilities
	Trade and other payables	1,282,049		651,144
Total Liabilities		1,282,049		651,144
Total Equity and Liabilities		47,088,481		31,145,780

OVOCA GOLD plc.
Group Cash Flow statement for the period ended 30 June 2008
		30 June	30 June
		2008	2007
		Euro	Euro
Cash flows from operating activities
Net loss for the period before taxation		(602,631)	(397,784)
Adjustments for:
Depreciation		241,809	1,865
Decrease/(Increase) in debtors		354,646	(78,018)
Increase/(Decrease) in creditors		89,335	(270,712)
Net cash from operating activities		83,159	(744,649)
Cash flows from financing activities
Proceeds of issue of share capital		349,251	37,125
Cash flows from investing activities
Expenditure on exploration activities		(3,532,859)	(1,717,613)
Purchase of property, plant & equipment		(840,065)	0
Interest received		4,580	25,813
		(4,019,093)	(1,654,675)
Net (Decrease)/Increase in cash and cash equivalents		(3,935,934)	(2,399,324)
Cash and cash equivalents at beginning of period		5,032,701	3,413,909
Cash and cash equivalents at end of period		1,096,767	1,014,585

Notes

1.   No dividend is proposed in respect of this period.

 

2.   The calculations of loss per share have been based on the retained losses after taxation and on a weighted average of 434,663,637 ordinary shares (2007 – 315,725,761) in issue during the period.

 

3.   The Unaudited results have been prepared on a going concern basis and on the basis of the accounting policies adopted in the Annual accounts for the year ended 31 December 2007.

 

4.   The interim report is Unaudited and does not constitute Statutory Accounts as defined in S.148 of the Companies act 1963. A copy of the Group’s 2007 Statutory Accounts has been filed with the Irish Companies Registration Office. The auditors’ opinion on these statutory accounts was unqualified.

 

5.   The interim report for the six months to 30 June 2008 was approved by the Directors on 1 September 2008.

Copies of this report are available at the Company's offices at:

Connaught House, Burlington Road, Ballsbridge, Dublin 4

Ovoca Gold Plc is an international exploration company quoted in London (OVG.L), Dublin (OVX.IR) and Frankfurt (OVX:GR ), exploring for precious metals in Russia.

For further information please visit www.ovocagold.com or contact:

Danesh Varma, CFO - Ovoca Gold Plc John Frain - Davy

Tel: [phone] Tel: + 33 (0) 1 679 6363

Email: [e-mail]  Email: [e-mail]

 

END

 

 

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