Interim Results
Thor Mining PLC
14 March 2007
THOR MINING PLC
Interim report for the six months to 31 December 2006
Dated: 14 March 2007
Thor Mining PLC ('Thor' or the 'Company') the specialist metals company
currently focussed on advancing tungsten-molybdenum and uranium projects in the
Northern Territory of Australia, today announced its interim results for the
period ended 31 December 2006.
CEO Report
The CEO presents his review for the period, together with the consolidated
financial report for the six months ended 31 December 2006.
Operating Review
During the first half of the 2007 financial year, Thor has continued to progress
its key asset, the 100% owned Molyhil Tungsten-Molybdenum project ('Molyhil')
located in central Australia. The definitive feasibility study ('DFS') was
completed as scheduled and confirmed that the project is technically and
economically viable.
The company completed the purchase of Hale Energy Limited, with over 3,000 sq km
of Uranium exploration ground. This highly prospective group of Uranium
exploration tenements is also located in central Australia. A vigorous and well
funded exploration program began in October 2006, and is ongoing.
Thor closed its Australian A$10.0 million initial public offering ('IPO') fully
subscribed ahead of the dual listing of its shares on the Australian Stock
Exchange ('ASX') in September 2006.
MOLYHIL TUNGSTEN - MOLYBDENUM PROJECT
Exploration
A program of Deep Reverse Circulation was successful in identifying extensions
to the Yacht Club and Southern ore zones. The program also included geotechnical
and hydrogeological studies over areas designated for future mine development
infrastructure. Three extra holes were completed beneath the Yacht Club and
Southern ore bodies as a result of encouraging geology. A total of 10 holes were
completed for 2,038m.
The results have confirmed depth extensions at both the Yacht Club and Southern
orebodies.
Significant RC Results ( > 0.10%)
Hole ID Depth From Depth To Width MoS2 WO3
TMRC24 130 131 1 < 0.10 0.33%
133 135 2 < 0.10 0.16%
139 147 8 0.16% 0.45%
149 155 6 0.63% 0.10%
TMRC30 135 141 6 0.13% 0.37%
149 154 5 0.60% 0.22%
155 174 19 0.64% 0.11%
inc 156 161 5 0.74% 0.30%
175 177 2 < 0.10% 0.19%
187 194 7 0.18% 0.12%
Significant RC Results ( > 0.10%) (continued)
Hole ID Depth From Depth To Width MoS2 WO3
TMRC31 154 156 2 0.09% 0.63%
158 159 1 0.10% 0.11%
170 189 19 0.33% 0.16%
inc 173 180 7 0.57% 0.38%
TMRC32 145 150 *5 0.38% 1.25%
150 151 1 0.16% < 0.10%
153 159 6 0.13% 0.16%
161 163 2 < 0.10% 0.42%
164 172 8 0.54% 0.34%
176 180 4 0.50% < 0.10%
185 186 1 < 0.10% 0.21%
187 188 1 0.10% < 0.10%
192 193 1 < 0.10% 0.19%
193 194 1 0.14% < 0.10%
208 211 3 0.61% 0.16%
TMRC51 145 148 3 0.12% 0.37%
153 155 2 0.16% 0.42%
159 169 10 0.23% 0.88%
inc 163 168 5 0.43% 1.61%
171 173 2 0.08% 0.23%
179 180 1 0.95% 1.30%
*5m composite value
Thor has started its 2007 exploration program at Molyhil. A 3,084m program of
reverse circulation drilling has been designed to infill and extend beyond the
proposed pit design outlined in the recently completed DFS. The objective of the
program is to increase the reserve and resources and ultimately extend the
proposed life of mine at Molyhil.
Drilling is designed to infill up dip zones of Hanging Wall mineralization
discovered in last year's program, as well as drill extensions to several of the
deeper zones below the Southern ore body.
Thor's development of Molyhil is being conducted in parallel with its Northern
Territory uranium exploration programs due to begin in late March 2007 DFS.
The metallurgical testwork program was successfully completed as part of the
DFS. This allowed the final concentrate volumes and specifications to be
calculated. The production estimates and concentrate specifications exceeded the
initial scoping study, confirming potential production of approximately 100,000
mtu of tungsten oxide per annum and 1,000,000 lbs of Mo per annum.
The DFS confirmed that the project is technically and economically viable, with
strong financial returns and a rapid capital payback. Significantly, the DFS
indicates that a capital payback period of less than 7 months can be achieved
with the stage 1 pit, with the operation generating a positive pre-royalty cash
flow EBIT of A$117 million over its initial 4-year life, using a base case sale
price of US$20/lb of molybdenum and US$204/mtu for tungsten. At these base case
prices the project has a net present value ('NPV') of A$88 million and an
internal rate of return ('IRR') of 111%, using a discount rate of 8%.
OTHER
Product Marketing
Penfold Marketing Pty Ltd ('Penfold') (www.penfoldlimited.com) have been
exclusively mandated until 15 March 2007 to promote and market Molyhil to secure
funding and in due course be appointed as the company's worldwide agent to
secure an offtake agreement by the 15th of March 2007.
Penfold are a specialist metals marketing and business investment company based
in Australia with offices in Adelaide and Shanghai. Over the last decade Penfold
has developed many new China business opportunities sourced from its global
customer base. Penfold also has established relationships with mining and metals
operations located elsewhere in Asia, including Japan, South Korea, Malaysia and
India. The company has included a list of interested parties as part of the
mandate and will contact them in due course.
Environmental and Notice of Intent ('NOI')
Keith Lindbeck and Associates have been commissioned to complete the NOI and the
environmental studies. A draft version of the NOI was submitted to the NT Mines
Department for review.
Negotiation of Mining Agreement
Formation of a development review committee has commenced for the negotiations
with the Central Land Council with the aim to complete a mining agreement in
parallel with the NOI. Initial meetings with the traditional owners are planned,
with the aim to complete the agreement by the end of March 2007.
Capital Cost Estimation
Thor has sourced second-hand crushing and process equipment to accelerate the
timetable and reduce capital costs. They have also identified all long lead
items and have completed all equipment lists. This work is on-going.
URANIUM EXPLORATION
Uranium exploration has begun with reconnaissance work at Harts Range and the
completeion of a major HoistEM survey at Hale River and Plenty Highway Projects.
Harts Range
The Harts Range uranium prospect located approximately 200km east-northeast of
Alice Springs in the Arunta Province of the Northern Territory. The project
includes six tenements EL24827, EL24734, EL24735, EL24736, EL24765 and A24766.
Reconnaissance sampling of the Harts Range tenement area was completed during
October, with several areas traversed. The main objective of the sampling
program was to identify known prospects and determine optimal access routes and
logistics for follow-up exploration in 2007.
Eleven rock chips were taken on two out of the six granted tenements. Analysis
was completed for 39 elements, with the following results returned:
SAMPLE Ba Ce Cs Ga Nb Pb Rb Th U Y Zn Zr
ID
HR001 627 55.7 0.46 36.4 5.2 67 92.7 28.4 7.61 103.5 35 82
HR002 101.5 35 0.13 50.8 3.2 120 12.5 9.04 6.71 115 0.52% 71
HR003 122.5 71.2 0.11 36.1 0.4 92 9.1 35.5 7.19 57.9 45 59
HR004 137 114 0.19 45.2 16.7 20 19.2 8.49 6.65 95.7 13 189
HR005 86 103.5 0.03 52.3 9.5 39 3.1 19.55 6.36 60.5 19 274
HR006 22.3 19.7 0.07 27.2 4.2 50 2 3.55 16.45 21.7 99 86
HR007 862 173.5 3.84 15.4 10.8 1.62% 100.5 684 31.60% > 10000 48 923
HR008 1395 90.3 5.23 21.3 14.5 50 197.5 5.52 227 36 90 457
HR009 1225 89.3 5.41 22.6 13.6 33 153 5.5 120.5 38.3 91 369
HR010 185.5 69.8 1.16 13.1 3.5 60 81.9 50.3 210 117.5 12 10
HR011 240 12.5 1.43 17.3 647 294 84 50.1 0.61% 245 9 29
All units are in ppm unless otherwise stated
> 10,000 ppm - beyond detection limits
Six samples HR1-6 were taken in the Eagle Beak area on EL24827. Strong epidote
alteration was noted related to shearing of altered felsic rocks, although no
significant uranium values were returned. Samples HR1-3 were elevated in
strontium and sample HR2 returned a value in excess of 0.52% Zn.
Five samples were taken at the Ryoma and Casper prospects on EL24735, with
results confirming the prospectivity of this area returning elevated uranium
values ranging from 121ppm to 227ppm U. Results were also elevated in rare earth
elements ('REE') such as Yttrium and Zirconium. Sample HR8 also returned up to
1.62% Pb.
The results included a single sample result of 31.6% U. This hand-picked sample
contained a significant portion of visible uraninite, and is not representative
of the complete zone of shearing noted in mafic amphibolites. Results were also
elevated in REE, which is often associated with late-stage intrusives.
Significantly, a number of large pegmatite bodies are located within the Harts
Range project. The result of 0.61% U from the Casper Prospect confirms this,
with the sample also anomalous in Nb and Cs.
Work to date specifically in the region of the Ryoma and Casper Prospects
indicates that sporadic high uranium grades occur along NW trending structural
corridors, suggesting a vein-type model for mineralisation such as that at
Schwartzwalder in Colorado (USA). Mineralisation here occurs in numerous lenses
associated with a major shear fault network and along contacts between mica
schist and gneissic rocks. They occur generally in clusters and are of smaller
tonnage but high in grade.
In light of these encouraging initial results, a second exploration program
further ground surveys were taken at Harts Range and Bundey River. A
scintillometer orientation survey was started late November 2006. Scintillometer
readings were taken at various locations including several prospects with
historic uranium exploration results. In total, fourteen samples were collected.
Harts Range - EL24736
At the Haddock Creek and Daicos prospects, a number of sub-parallel pegmatites
were surveyed, with a maximum count of 19,000 cps. Four samples were taken
within EL24736, with one 1.5kg sample returning a very high uranium result of
8.87% U with associated REE, tantalum, niobium, and yttrium. Samples HR12, HR14
and HR15 were also anomalous, with results ranging from 146ppm to 0.27% uranium.
Further Haddock-style anomalies have been identified at points along a
stratigraphic arc extending north. Approximately 12 km of prospective strike
length has been identified representing potential host extensions or repetitions
of epidosite-pegmatoid layers.
SAMPLE EAST NORTH PROSPECT CPS COMMENTS Th(ppm) U(ppm)
ID (GDA94) (GDA94)
HR 12 513123 7445215 Haddock 1200-1800 Pegmatite. 25.4 158.5
Creek
Highly Anomalous point source.
HR 13 516902 7439841 Daicos 6000-7000 Qtz Pegmatite. 0.71% 8.87%
Anomalous zone 18m by 20-50cm wide
at contact.
HR 14 516902 7439841 Daicos 6000-7000 Qtz Pegmatite. Fault zone.? 99.5 925
Anomalous parallel zone to the
south.
HR 15 516842 7439565 Daicos 1500 Large Pegmatite above 245 0.27%
HR13-14
Max 19,000cps.
All units are in ppm unless otherwise stated
Harts Range - EL24765
Five samples (HR16-HR20) were taken from the Garnet Prospect, located on
adjacent tenement EL24765, with background readings at this locality ranging
from 450-6600cps. Samples from this area were taken here in a medium-to-fine
grained altered pegmatite, rich in garnet. The results were very encouraging
with two samples returning elevated uranium values of 0.17% and 0.26%.
PNC mapped this area in 1993 and determined that the strongest radioactivity
occurs where the pegmatite has been more extensively altered to garnet. Historic
PNC assays at this prospect ranged between 18-2,900ppm U, 100-4,000ppm Y and
100-2,600ppm Nb. Garnet contaminated pegmatite returned the highest assays while
garnet-quartz-biotite alteration returned lower grades.
SAMPLE EAST NORTH PROSPECT CPS COMMENTS Th(ppm) U(ppm)
ID (GDA94) (GDA94)
HR 16 514061 7429930 Garnet 450-6600 Altered Pegmatite Rich in garnet, 197 0.17%
with skarn rafts in pegmatite.
HR 17 514061 7429930 Garnet 450-6600 Altered Pegmatite Rich in garnet, 244 0.26%
with skarn rafts in pegmatite.
HR 18 514061 7429930 Garnet 450-6600 Altered Pegmatite Rich in garnet, 18.6 141
with skarn rafts in pegmatite.
HR 19 514807 7429132 Ant 260 Anomalous zone associated with 20.5 34.4
silica-epidote veining. Past
digging in Creek Bed.
HR 20 513300 7429415 Near 2400 Single Anomaly, in thin (60-80cm) 7.48 87.8
Goanna Peg dyke, cross cutting bedded
mafic metasediments
(bio-qtz-fdsp).
All units are in ppm unless otherwise stated
Harts Range - EL24734
The Harts Range project area lies on the eastern margin of the Entia Dome. The
Entia Gneiss (Harts Range Group) forms the core of the Entia Dome, which is
located on the western part of the exploration license area.
Regional exploration resulted in the identification of a single pegmatite some
6.3km in length and 50m wide at Mt Mary. Two rock chips taken from 'hot spots'
in this area returned elevated uranium values ranging from 107 to 246ppm. A
second pegmatite, which also has extensive strike (2km) and width (63m), has
been identified to the north-east, but has not been sampled as yet.
Further work is recommended in this area, given that these larger scale
intrusives are generally similar to the pegmatites mined at the Rossing Mine in
Namibia. This type of deposit generally has lower grades (0.05% U) and high
tonnages. Detailed mapping and radiometric surveys of these structures and
pegmatites is essential in order to develop an exploration model which will lead
to an economic uranium discovery in the Harts Range. Mt Mary has had little
historic exploration and will be a priority target in the Company's next field
program.
Ongoing exploration will also cover the SNAF and Kelly Prospects, located to the
north and south of Mt Mary. Historic rock chip sampling by PNC at these
prospects returned very high-grade uranium assays ranging from 550-1,580 ppm U.
The mineralisation at these prospects is believed to be an intrusive-style,
similar to the uranium deposits occurring in the Olary Province in South
Australia, which are associated with mesoproterozoic intrusives. One of these,
Radium Hill, has a number of uranium-rare earth bodies occurring in narrow,
steeply-dipping pegmatitic veins in shear zones within quartzo-feldspathic
gneiss.
SAMPLE EAST NORTH PROSPECT CPS COMMENTS Th(ppm) U(ppm)
ID (GDA94) (GDA94)
HR 23 532703 7452531 Mt Mary 700-1500 Large Pegmatite 197 47.9
contact zone with
biotite-gneissic rock.
HR 24 532488 7452386 Mt Mary 450-2500 Signs of migmatite, 10.75 246
and partly melted
bio-gneissic
zenoliths.
HR 25 532194 7452330 Mt Mary 450-2500 Similar 13.25 107.5
All units are in ppm unless otherwise stated
Bundey River - EL25378
Three radiometric anomalies have been identified in the eastern part of the
Bundey River Project area from airborne radiometric survey compiled by the
Northern Territory Geological Survey onto a 1:250,000 map.
Two samples were taken from this area with disappointing uranium results. While
no calcrete samples were able to be taken, a consistently high scintillometer
count was taken over the main drainage channel. Sampling returned an anomalous
thorium value in exposed lateritic remnants, confirming the potential for
tertiary basin and drainage hosted uranium.
This area requires investigation by a small drilling rig mounted on a four wheel
drive vehicle.
SAMPLE EAST NORTH PROSPECT CPS COMMENTS Th(ppm) U(ppm)
ID (GDA94) (GDA94)
HR 21 514060 7490850 Bundey River 350-900 Lateritised acid 34.1 21.5
volcanic? High
background
(350-900cps).
HR 22 514060 7490850 Bundey River 350-900 Couldn't find source 565 9.32
of anomaly (more
active than HR 21)
All units are in ppm unless otherwise stated
Hale River-Plenty Highway Projects
The first phase of a comprehensive uranium exploration program has been
completed.
The first phase of the program comprised a helicopter borne HoistE survey
covering the Company's Hale River and Plenty Highway tenements, which cover some
1,200 sq-km of tertiary basin sediments and palaeo-drainage channels prospective
for sandstone and roll-front style uranium deposits.
The survey was conducted over the northern section of the garden sub-basin (Hale
River) and the Waite Basin (Plenty Highway). These basins are believed to hold
the highest promise for a new uranium discovery. The airborne surveys were
completed on 200m and 400m line spacings respectively.
The preliminary interpretation of plenty highway has been received from
modelling of the data. A total of 126 traverses were completed for 1,800 line
kilometers. A HoistEM survey maps the palaeo-topography of the crystalline
basement due to significant electrical contrast between overlying unconsolidated
sediments and the basement rocks.
This interpretation has identified three major palaeo-channels running in an
east-west direction. Several areas have been highlighted which are believed to
contain significant carbonaceous matter, the essential ingredient for the
formation of Roll Front uranium deposits.
CORPORATE
Capital Raising and Listing on ASX
During the half year, Thor received shareholder approval to proceed with the
acquisition of Hale Energy. Shareholder approval was also received for a 1-for-3
capital consolidation and an issue to existing shareholders of one warrant for
every two post-consolidation shares held ahead of the dual listing of Thor's
shares on the ASX via a A$10m IPO, which closed fully subscribed. The shares
listed on the ASX on 27 September 2007.
The consideration for the acquisition of Hale Energy was the issue of 16 million
fully-paid shares and 8.5 million warrants.
The funds raised from the IPO are being used to pursue an aggressive development
strategy focused on the recent completion of the DFS for the Molyhil Project.
Appointment of Exploration Manager
Thor appointed Mr Stuart Till as Exploration Manager. Mr Till is a West
Australian geologist with 20 years exploration and development experience in a
variety of geological terrains and commodities and for the last 10 years has
held a senior role. He brings to Thor a pragmatic hands-on approach to modern
exploration with a broad knowledge base including database and computing skills,
field logistics, equipment maintenance in remote terrains, tenement management
and a thorough understanding of drilling equipment. Stuart's input will allow
Thor to manage a cost effective, efficient exploration department.
Yours faithfully
THOR MINING PLC
John A Young
Chief Executive Officer
Independent Review Report to Thor Mining PLC
Introduction
We have been instructed by the Company to review the financial information set
out on pages 9 to 12 and we have read the other information contained in the
half-yearly report and considered whether it contains any apparent misstatements
or material inconsistencies with the financial information.
This report is made solely to the Company in accordance with guidance contained
in Bulletin 1999/4 'Review of Half-yearly financial information' issued by the
Auditing Practices Board. To the fullest extent permitted by law, we do not
accept or assume responsibility to anyone other than the company, for our work,
for this report, or for the conclusions we have formed.
Directors' responsibilities
The half-yearly report, including the financial information contained therein,
is the responsibility of, and has been approved by the Directors. The Directors
are responsible for preparing the half-yearly report in accordance with the
rules of the London Stock Exchange for companies trading securities on AIM which
require that the half-yearly report be presented and prepared in a form
consistent with that which will be adopted in the Company's annual accounts
having regard to the accounting standards applicable to such annual accounts.
Review work performed
We conducted our review in accordance with guidance contained in Bulletin 1999/4
issued by the Auditing Practices Board for use in the United Kingdom by auditors
of fully listed companies. A review consists principally of making enquiries of
the Directors and applying analytical procedures to the financial information
and underlying financial data and based thereon, assessing whether the
accounting policies and presentation have been consistently applied unless
otherwise disclosed. A review excludes audit procedures such as tests of
controls and verification of assets, liabilities and transactions. It is
substantially less in scope than an audit performed in accordance with United
Kingdom Auditing Standards and therefore provides a lower level of assurance
than an audit. Accordingly we do not express an audit opinion on the financial
information.
Review conclusion
On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months
ended 31st December 2006.
CHAPMAN DAVIS LLP
Chartered Accountants
2 Chapel Court
London SE1 1HH
Consolidated Income Statement
For the 6 months ended 31 December 2006
Notes £'000 £'000 £'000
Six months ended 31 Six months ended Year ended
December 2006 31 December 2005
(Unaudited) (Unaudited) 30 June 2006
(Audited)
Administrative expenses (130) (105) (137)
Corporate expenses (671) (198) (568)
Other expenses - - (19)
OPERATING LOSS (801) (303) (724)
Interest receivable 19 20 33
Other income - - 7
LOSS BEFORE TAXATION (782) (283) (684)
Taxation 3 - - -
LOSS ON ORDINARY ACTIVITIES AFTER
TAXATION
(782) (283) (684)
Loss per share:
Basic 5 (0.80)p (0.47)p (1.13)p
Consolidated Statement of Total Recognised Gains and Losses
For the 6 months ended 31 December 2006
Notes £'000 £'000 £'000
Six months ended 31 Six months ended 31 Year ending
December 2006 December 2005 30 June 2006
(Unaudited) (Unaudited) (Audited)
Loss for the period (782) (283) (684)
Unrealised surplus on foreign exchange 37
46 59
Total recognised gains and losses
related to the period (736) (246) (625)
Consolidated Balance Sheet
At 31 December 2006
Notes £'000 £'000 £'000
31 December 2006 31 December 2005 30 June 2006
(Unaudited) (Unaudited) (Audited)
NON-CURRENT ASSETS
Intangible assets - deferred
exploration costs
3,582 1,281 1,445
Mine development costs 231 - -
Property and equipment 24 10 9
TOTAL NON-CURRENT ASSETS 3,837 1,291 1,454
CURRENT ASSETS
Cash and cash equivalents 2,603 751 484
Trade and other receivables 94 46 32
Other 14 10 19
TOTAL CURRENT ASSETS 2,711 807 535
TOTAL ASSETS 6,548 2,098 1,989
CURRENT LIABILITIES
Trade and other payables (60) (83) (88)
TOTAL CURRENT LIABILITIES (60) (83) (88)
NET ASSETS 6,488 2,015 1,901
EQUITY
Issued share capital 390 182 192
Share premium 5,410 1,750 1,928
Merger reserve 1,634 405 405
Foreign exchange reserve 106 60 59
Option revaluation reserve 513 - 100
Retained losses (1,565) (382) (783)
TOTAL EQUITY 6 6,488 2,015 1,901
Consolidated Cash Flow Statement
For the 6 months ended 31 December 2006
£'000 £'000 £'000
Six months ended Six months ended Year ended
31 December 2006 31 December 2005
(Unaudited) (Unaudited) 30 June 2006
(Audited)
CASH FLOWS FROM OPERATING ACTIVITIES
Net cash from operating activities (449) (215) (476)
Interest received 19 20 33
Sundry income - - 7
Net cash used in operating activities (430) (195) (436)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of plant and equipment (19) (10) (12)
Payments for exploration expenditure (833) (548) (760)
Payments for mine development expenditure (231) - -
Net cash used in investing activities (1,083) (558) (772)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds on share issue 3,991 - 300
Share issue expenses (359) - (112)
Net cash from financing activities 3,632 - 188
INCREASE/(DECREASE) IN CASH IN THE PERIOD 2,119 (753) (1,020)
Cash at beginning of period 484 1,504 1,504
Cash at end of period 2,603 751 484
Notes to the Half-yearly Report
For the 6 months ending 31 December 2006
1. BASIS OF PREPERATION
(a) Presentation of Half-yearly results
This half-yearly report was approved by the Directors on 1 March 2007. The
half-yearly results have not been audited, but were the subject of an
independent review carried out by the Company's auditors, Chapman Davis LLP.
Their review confirmed that the figures were prepared using applicable
accounting policies and practices consistent with those adopted in the 2006
annual report. The financial information contained in this half-yearly report
does not constitute statutory accounts as defined by Section 240 of the
Companies Act 1985.
(b) Statement of Compliance
This half-yearly report has been prepared in accordance with International
Financial Reporting Standards, including IAS 34 'Half-yearly Financial
Statements', and complies with the listing requirements for companies trading
securities on the Alternative Investment Market.
The half-yearly report has been prepared under the historical cost convention.
2. ACCOUNTING POLICIES
(a) Basis of consolidation
The consolidated financial statements comprise the financial statements of Thor
Mining PLC and its controlled entities. The financial statements of controlled
entities are included in the consolidated financial statements from the date
control commences until the date control ceases.
The financial statements of subsidiaries are prepared for the same reporting
period as the parent company, using consistent accounting policies.
All intercompany balances and transactions have been eliminated in full.
(b) Exploration and development expenditure
Exploration, evaluation and development expenditure incurred as accumulated in
respect of each identifiable area of interest. These costs are only carried
forward to the extent that they are expected to be recouped through the
successful development of the area or where activities in the area have not yet
reached a stage which permits reasonable assessment of the existence of
economically recoverable reserves.
Accumulated costs in relation to an abandoned area are written off in full
against the profit in the year in which the decision to abandon the area is
made.
A regular review is undertaken of each area of interest to determine the
appropriateness of continuing to carry forward costs in relation to that area of
interest.
Restoration, rehabilitation and environmental costs necessitated by exploration
and evaluation activities are expensed as incurred and treated as exploration
and evaluation expenditure.
(c) Deferred taxation
Deferred income tax is provided on all temporary differences at the balance
sheet date between the tax bases of assets and liabilities and their carrying
amounts for financial reporting purposes.
Deferred income tax liabilities are recognised for all taxable temporary
differences:
(i) Except where the deferred income tax liability
arises from the initial recognition of goodwill or of an asset or liability in a
transaction that is not a business combination and at the time of transaction,
affects neither the accounting profit nor taxable profit or loss; and
(ii) In respect of taxable temporary differences
associated with investments in subsidiaries, except where the timing of the
reversal of the temporary differences can be controlled and it is probable that
the temporary differences will not reverse in the foreseeable future.
Deferred income tax assets are recognised for all deductible temporary
differences, carry-forward of unused tax assets and unused tax losses, to the
extent that it is probable that taxable profit will be available against which
the deductible temporary differences and the carry-forward of unused tax credits
and unused tax losses can be utilised, except:
(i) When the deferred income tax asset relating to
the deductible temporary difference arises from the initial recognition of an
asset or liability in a transaction that is not a business combination and, at
the time of the transaction, affects neither the accounting profit nor taxable
profit or loss; or
(ii) When the deductible temporary difference is
associated with investments in subsidiaries, in which case a deferred tax asset
is only recognised to the extent that it is probable that the temporary
differences will reverse in the foreseeable future and taxable profit will be
available against which the temporary difference can be utilised.
The carrying amount of deferred income tax assets is reviewed at each balance
sheet date and reduced to the extent that it is no longer probable that
sufficient taxable profit will be available to allow all or part of the deferred
income tax asset to be utilised.
Unrecognised deferred income tax assets are reassessed at each balance sheet
date and are recognised to the extent that it has become probable that future
taxable profit will allow the deferred tax asset to be recovered.
Deferred income tax assets and liabilities are measured at the tax rates that
are expected to apply to the year when the asset is realised or the liability is
settled, based on tax rates (and tax laws) that have been enacted or
substantively enacted at the balance sheet date.
Deferred tax assets and deferred tax liabilities are offset only if a legally
enforceable right exists to set off current tax liabilities and the deferred tax
assets and liabilities relate to the same taxable entity and the same taxation
authority.
(d) Foreign currencies
Transactions in foreign currencies are recorded at the rate ruling at the date
of the transaction. Monetary assets and liabilities denominated in foreign
currencies are translated at the rate of exchange ruling at the balance sheet
date. All differences are taken to the profit and loss account.
On consolidation of a foreign operation, assets and liabilities are translated
at the balance sheet rates, income and expenses are translated at rates ruling
at the transaction date. Exchange differences on consolidation are taken to the
foreign exchange reserve account.
(e) Share based payments
For equity settled share based payments the transactions are measured at the
fair value of the equity instruments granted at the date of grant. No further
re-measurement is conducted for subsequent movements in the fair value.
3. TAXATION
No taxation has been provided due to losses in the period.
4. DIVIDENDS
The Directors do not recommend the payment of a dividend.
5. LOSS PER SHARE
Six months ending Six months ending Year ending 30 June
2006 (Audited)
31 December 2006 31 December 2005
(Unaudited) (Unaudited)
£'000 £'000 £'000
Basic loss per share for the
period
Loss (782) (283) (684)
Weighted average number of
shares 97,250,362 60,558,333 60,795,776
Loss per share - pence (0.80) (0.47) (1.13)
Prior period comparatives have been restated to reflect the impact of the
current period 1:3 share consolidation.
No diluted loss per share is presented as the effect of exercise of outstanding
options is to decrease the loss per share.
6. RECONCILIATION OF MOVEMENT IN SHAREHOLDERS' FUNDS
Share Share Profit Other Total
capital premium & loss reserves
account account
£'000 £'000 £'000 £'000 £'000
At 1 July 2006 192 1,928 (783) 564 1,901
Share issue 198 3,482 - 1,229 4,909
Unrealised foreign exchange - - - 47 47
gain
Option revaluation reserve - - - 413 413
Loss for the period - - (782) - (782)
At 31 December 2006 390 5,410 (1,565) 2,253 6,488
On 27 September 2006, Thor Mining PLC closed it's A$10,000,000 (50,000,000
shares) initial public offering fully subscribed, ahead of its dual listing on
the Australian Stock Exchange. On this date, Thor Mining PLC also issued
16,000,000 shares to acquire 100% of the voting shares in Hale Energy Limited as
detailed in note 7.
Prior to issuing these new shares there was a 1:3 consolidation of the existing
shares on issue.
The movements in issued share capital during the period were as follows:
31 December 2006 30 June 2006
£'000 £'000
Issued and paid-up share capital
Ordinary shares 390 192
Number £'000
Movements in shares on issue
Balance as at 1 July 2006 191,675,000 192
1 for 3 share consolidation (127,783,334) -
Share issue 66,000,000 198
Balance as at 31 December 2006 129,891,666 390
7. BUSINESS COMBINATION
On 27 September 2006, Thor Mining PLC acquired 100% of the voting shares of Hale
Energy Limited, a non-listed company incorporated in Australia. Hale Energy
Limited operates in mineral exploration and owns over 3,000 sq km of uranium
exploration ground, located in central Australia.
The total cost of the combination was £1,277,120 and comprised of an issue of
equity instruments. The group issued 16,000,000 ordinary shares with a fair
value of £0.0798 each, based on the quoted price of the shares of Thor Mining
PLC at the date of the exchange, and 8,500,000 warrants, exercisable at 8 pence
on or before 15 June 2009.
The fair value of the identifiable assets and liabilities of Hale Energy Limited
as at the date of acquisition are:
Recognised on Carrying value
acquisition
£'000 £'000
Deferred exploration costs 1,339 238
Trade and other payables (62) (62)
Fair value of identifiable net assets 1,277 176
Cost of acquisition:
Shares issued, at fair value 1,277
Cash in/(out)flow on acquisition:
Net cash acquired with the subsidiary -
Cash Paid -
Net cash in/(out)flow -
From the date of acquisition, Hale Energy Limited has contributed losses of
£11,000 to the net loss of the group.
Thor Mining PLC
Company Information
Directors John W Barr (Executive Chairman)
John A Young (Chief Executive Officer)
P Mark Smyth (Non-executive Director)
Gregory M Durack (Non-executive Director)
Secretary Stephen F Ronaldson (United Kingdom)
Damian P Delaney (Australia)
Registered office 3rd Floor
55 Gower Street
London WC1E 6HQ
Australian office c/o Sunsphere Pty Ltd
Level 1
282 Rokeby Road
Subiaco Western Australia 6008
Telephone: + 618 9327 0900
Fax: + 618 9327 0901
Shareholder Enquires Damian P Delaney dpd@thormining.com
Shareholders are encouraged to register on the Company's website to receive
updates by email.
Web site: www.thormining.com
Nominated Adviser and ARM Corporate Finance Limited
Broker London
Telephone: + 44 (0) 20 7512 0191
Fax: + 44 (0) 20 7512 0747
Auditors Chapman Davis LLP
London
Solicitors Ronaldsons
London
Hardy Bowen
Australia
Registrar Computershare Investor Services plc
PO Box 82
The Pavilions
Bridgwater Road
Bristol BS99 7NH
Telephone: + 44 (0) 870 702 0002
Fax: + 44 (0) 870 703 6116
Registered number 05276414
Enquiries:
John Young + 61 (0)419 954 020 Thor Mining PLC Chief Executive Officer
John Simpson 020 7512 0191 ARM Corporate Finance Nominated Adviser
Limited
Leesa Peters 020 7429 6600 Conduit PR Limited Public Relations/UK
or 020 7429 6603
Jos Simson
Nicolas Read + 61 (0) 8 9388 1474 Jan Hope & Partners Public Relations/
Australia
Updates on the Company's activities are regularly posted on Thor's website
www.thormining.com, which includes a facility to register to receive these
updates by email.
This information is provided by RNS
The company news service from the London Stock Exchange
Latest directors dealings
- 12 hours ago The Gym Group
- 12 hours ago Manchester & London Investment Trust
- 12 hours ago Carr's Group
- 12 hours ago Carr's Group
- 13 hours ago Playtech