Interim Results
Tertiary Minerals PLC
21 May 2001
Chairman's Statement
I am pleased to report the Company's progress and interim results for the
six-month period to 31st March 2001.
Review of Activities
At the end of 2000 the Company announced a diversification of its exploration
programmes to include Platinum Group Metals ('PGM') and tantalum. These metals
have enjoyed spectacular price increases in recent years.
This diversification was recently advanced with the acquisition of the
Porsvann and Karenhaugen PGM exploration prospects in the Finnmark district of
Northern Norway where previous drilling by the Norwegian Geological Survey has
demonstrated wide intervals of platinum and palladium mineralisation in
ultramafic intrusions. At Porsvann, drill holes intersected up to 43m of 1.2g/
t combined palladium and platinum ('Pd +Pt') whilst at Karenhaugen surface
grab samples have assayed up to 15 g/t Pd+Pt. These results suggest the
potential for a new province of PGM mineralisation. The Company has acquired a
dominant land position in the surrounding area and its Finnmark project now
comprises 179 preclaims covering several similar ultramafic intrusions with
PGM potential.
In Finland, the Company is considering provisional development options for its
Rosendal tantalum resource where surface sampling and drilling by the
Geological Survey of Finland has identified 1.3 million tonnes of tantalum
mineralised pegmatite to a depth of 100m. Other larger tantalum projects are
under active evaluation.
Exploration at the Windfall zinc project in Sweden has produced mixed,
sometimes disappointing, results. A thorough re-evaluation of this project, to
incorporate the newly acquired Boliden database, is now in progress to
determine if the Company should continue to fund further exploration or seek a
joint venture partner.
In addition to exploring its current core projects the Company also seeks to
generate additional exploration projects at low cost and to advance these
quickly and cost effectively to the drilling stage such that the Company
always has opportunities to discover commercial ore-bodies. Such a strategy
involves a high turnover of projects - the Company currently holds 11 projects
- and, inevitably, some such projects yield negative rather than positive
results. It is therefore encouraging to note the positive results emerging
from some of the Company's early stage exploration projects. One example is
the Djuragruvan project in Sweden where the Company has discovered numerous
surface boulders containing high grade zinc, lead and silver mineralisation
and where the search is now on to discover the source of these boulders which
are believed to have originated from within the Company's exploration permits.
Full details of the progress of exploration can be found in the various press
releases and quarterly reports published on the Company's website at
www.tertiaryminerals.com.
Results
The Group loss for the period was £178,527. This includes administration costs
of £124,243 and an amount of £70,574 arising from the write-off of certain
capitalised exploration expenditure.
Your Directors look forward with confidence and enthusiasm to reporting the
Company's further progress.
Patrick L. Cheetham, Executive Chairman
Consolidated Profit and Loss Account
For the six months to 31 March 2001
Six months Eight months Fourteen months
to to to
31 March 31 March 2000 30
2001
September
Unaudited 2000
Unaudited £ £
£
Administrative expenses (124,243) (78,478) (150,516)
Exploration costs written off (70,574) (4,380) (38,971)
----------- ---------- ----------
Operating loss (194,817) (82,858) (189,487)
Interest receivable 16,290 7,554 16,887
---------- --------- ----------
LOSS ON ORDINARY ACTIVITIES BEFORE
TAXATION (178,527) (75,304) (172,600)
TAXATION - - -
---------- --------- ----------
LOSS FOR THE FINANCIAL PERIOD (178,527) (75,304) (172,600)
====== ===== ======
Loss per share - basic (pence) (0.8) (0.6) (1.2)
==== ==== ====
All the above amounts are derived from continuing activities.
Consolidated Balance Sheet
As at 31 March 2001
As at As at As at
31 March 31 March 30
2001 2000 September
2000
Unaudited Unaudited
£ £ £
FIXED ASSETS
Intangible Assets 447,434 237,774 347,981
Tangible Assets 14,324 6,607 6,583
---------- ---------- ----------
461,758 244,381 354,564
CURRENT ASSETS
Debtors 25,248 8,457 14,784
Cash at bank and in hand 501,872 450,115 756,743
---------- ---------- ----------
527,120 458,572 771,527
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE 54,810 28,934 39,969
YEAR
---------- --------- ---------
NET CURRENT ASSETS 472,310 429,638 731,558
---------- ---------- ------------
TOTAL ASSETS LESS CURRENT LIABILITIES 934,068 674,019 1,086,122
====== ====== =======
CAPITAL AND RESERVES
Called up share capital 213,416 169,675 210,300
Share premium 940,110 448,552 917,326
Merger reserve 131,096 131,096 131,096
Profit and loss account (350,554) (75,304) (172,600)
---------- ---------- ------------
SHAREHOLDERS' FUNDS 934,068 674,019 1,086,122
====== ====== =======
Consolidated Cash Flow Statement
For the six months to 31 March 2001
Six months Eight months Fourteen months
to to to
31 March 31 March 30 September
2001 2000
2000
Unaudited Unaudited £
£ £
Net cash outflow from operating
activities (187,759) (68,228) (168,357)
Return on investments and servicing of
finance 16,290 7,554 16,887
Capital expenditure and financial
investment (109,302) (31,754) (143,729)
Acquisition and disposals - 18,108 18,108
----------- --------- -----------
Net cash outflow before financing (280,771) (74,320) (277,091)
Financing 25,900 524,435 1,033,834
----------- ---------- ------------
(Decrease)/Increase in cash in the (254,871) 450,115 756,743
period
======= ====== ======
Notes to the Interim Statement
1. Basis of preparation
The interim report has been prepared on the basis of the accounting policies
set out in the Company's financial statements for the period ended 30
September 2000. The financial information set out in this statement relating
to the period ended 30 September 2000 does not constitute statutory accounts
for that period. Full audited accounts in respect of that financial period
(which received an unqualified audit opinion and did not contain a statement
under Section 237(2) or (3) of the Companies Act 1985) have been delivered to
the Registrar of Companies
The interim report has been approved by the Directors and is unaudited.
Comparative figures for the eight months ended 31 March 2000 are extracts from
the interim report for that period and are also unaudited.
2. Loss per share
Loss per share has been calculated on the attributable loss for the period and
the weighted average number of shares in issue during the period.
Six months to Eight months to Fourteen months
to
31 March 2001 31 March 2000
30 September
Unaudited Unaudited 2000
Loss for the period (£) (178,527) (75,304) (172,600)
Weighted average shares in 21,300,007 13,005,901 14,993,910
issue
Basic loss per share (pence) (0.8) (0.6) (1.2)
==== ==== ====
The loss attributable to ordinary shareholders and the weighted average number
of ordinary shares used for the purpose of calculating diluted earnings per
share, are identical to those used to calculate the basic earnings per
ordinary share. This is because the exercise of share warrants would have the
effect of reducing the loss per ordinary share and is therefore not dilutive
under the terms of FRS 14.
3. Reconciliation of operating loss to net cash outflow from operating
activities
Six months Eight months Fourteen months
to to to
31 March 31 March 2000 30 September
2001
2000
Unaudited
Unaudited £
£
£
Operating loss (194,817) (82,858) (189,487)
Depreciation charge 2,108 1,220 3,012
Loss on foreign exchange 573 - -
Increase in debtors (10,464) (6,357) (12,684)
Increase in creditors 14,841 19,767 30,802
---------- --------- ----------
Net cash outflow from operating (187,759) (68,228) (168,357)
activities
====== ===== ======
4. Reconciliation of net cash outflow to movement in net funds
Six months Eight months Fourteen months
to to to
31 March 31 March 30 September
2001 2000
2000
Unaudited Unaudited £
£ £
(Decrease)/Increase in net cash in the
period (254,871) 450,115 756,743
Opening net funds 756,743 - -
---------- ---------- ----------
Closing net funds 501,872 450,115 756,743
====== ====== ======
5. Interim report
Copies of this interim report will be sent to all shareholders and are
available from Tertiary Minerals plc, Sunrise House, Hulley Road, Hurdsfield
Estate, Macclesfield, Cheshire, SK10 2LP, United Kingdom.