Interim Results
Connemara Mining Company plc
19 September 2007
Connemara Mining Company PLC
Interim Results for the Six Month Period to 30 June 2007
Connemara Mining Company PLC ('Connemara' or 'the Company'), the AIM listed base
metals exploration company with 29 exploration licences in Ireland is pleased to
announce its maiden interim results.
Highlights:
- Focused on zinc in Ireland
- Listed on AIM July 2007, raising £1m
- Drilling has started on the Connemara/Teck Cominco joint venture at
Monaster in Limerick, Ireland
- Plans underway to explore and drill the Lough Sheelin block, Ireland
- Building a strategic ground holding in Ireland
John Teeling, Chairman of Connemara Mining commented;
'The fundamentals to Connemara are highly positive; it's a great time to be in
zinc exploration with limited supply and high demand driving prices northwards.
We have some highly prospective licences adjacent to recent discoveries and we
have a joint venture with the world's leading zinc producer, Teck Cominco. The
first results from our drilling programme will be available later this year.'
Enquiries:
Connemara Mining
John Teeling, Chairman +353 1 833 2833
Jim Finn, Financial Director
Blue Oar Securities Plc
John Wakefield +44 (0) 117 933 0020
Simon Moynagh
College Hill
Paddy Blewer +44 (0) 207 457 2020
Nick Elwes
www.connemaramining.com
Chairman's Statement
This is a good time to be in exploration, particularly base metal exploration.
Historically high zinc and lead prices, strong demand from the emerging
economies of China and India accompanied by sluggish supply combine to make this
a very good environment. It is important to remember that our business is very
cyclical. The current high metal prices will come back, there will be hiccoughs
in demand in the fast growing emerging economies and new supply, currently in
the pipeline, will come on stream.
But fundamentals will win out. Indians need housing and the Chinese will buy
cars. Zinc is used mainly in galvanising, automotive applications and in brass.
All these uses have strong demand profiles for the medium term.
An old mining adage states, 'the best place to find a mine is where there is or
was a mine'. Ireland is one of the world's leading zinc provinces supplying 40
percent of Europe's zinc from three very large zinc mines, the Anglo-American
mine at Lisheen, the Lundin mine at Galmoy and the giant Boliden/Tara mine at
Navan. The Navan zinc mine after 30 years of production remains the fifth
largest zinc mine in the world.
Following two decades of decline, zinc exploration in Ireland recovered sharply
after 2002 with the Xstrata/Minco discovery at Pallas Green. Exploration work
continues on this project with growing indications of commerciality. The number
of exploration licences in Ireland has doubled in recent years, reflecting zinc
prices, the Limerick discovery and the prospectivity of the country.
The principals behind Connemara have long experience in Irish zinc. We put
together a portfolio of zinc exploration licences based on 'closeology' and '
trendology' as well as detailed geological evaluation. Connemara obtained 16
licences adjacent to the recent Xstrata/Minco discovery and 5 licences,
northwest of the Navan mine, in an area with known base metal mineralization.
Monaster/Newcastle West Block, Limerick
The current focus of activity is on this block of 16 licences adjacent to, and
southwest of, Pallas Green in Limerick. Teck Cominco, the world's leading zinc
producer, has joint ventured 15 of these licences with Connemara. Teck is
spending C$3m to earn a 75 percent interest. An initial drilling programme is
underway. Of three holes completed, two have intersected the same geological
structures identified at Pallas Green, less than 2km away. The discovery of
extensive iron sulphide mineralization in the Connemara holes is particularly
encouraging.
Lough Sheelin
The Lough Sheelin block of 5 licences has three highly attractive
characteristics:
- it lies at the crossroad of two regional trends, a leading indicator
for zinc in Ireland,
- it has the same geological structures as the giant Navan mine 20kms
to the southeast,
- it has known zinc mineralization, including an inferred resource of
1.7 million tonnes at 4.5% zinc.
A prospecting and sampling programme has been completed. A second stage
programme is underway to delineate drill sites. It is anticipated that drilling
will commence in Q4 2007, initially concentrating on the area where the earlier
discovery was made. The target may be deeper.
Other Irish Ground
We have a licence in Kerry where earlier exploration found zinc traces and a
gold licence in Kildare. Six additional blocks have been awarded to Connemara.
These licences are in the southeast of the country. We are applying for other
ground we deem to be prospective.
Opportunities Elsewhere
Connemara sees a flow of potential projects. This is because the principal
shareholders and management have extensive international mining experience and
contacts. Two areas in particular are of interest, the Middle East and Africa.
Evaluation is at an early stage.
Future
The immediate focus remains on Monaster in Limerick where drilling is ongoing.
Results to date are interesting. Further drilling is likely. Drilling will
also begin in Lough Sheelin late this year.
Connemara is well funded with good ground and quality partners working in a
prospective area.
John J Teeling
Chairman
19th September 2007
Connemara Mining Company plc
Financial Information (Unaudited)
Six Months Ended
30 June 07 30 June 06
£'000 £'000
Group Profit and Loss
Operating Loss (36) (2)
Investment Income 7 0
-------- --------
Loss before Taxation (29) (2)
Taxation 0 0
-------- --------
Loss for the period (29) (2)
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Loss per share (.23p) (.06p)
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30 June 07 30 June 06
£'000 £'000
Group Balance Sheet
Fixed Assets 333 38
-------- --------
Current Assets 328 651
Current Liabilities (16) (20)
-------- --------
Current Assets less Current Liabilities 312 631
-------- --------
645 669
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Share Capital and Reserves 645 669
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30 June 07 30 June 06
£'000 £'000
Group Cash Flow
Net Cash Outflow from Operating Activities (26) (5)
Returns on Investments and Servicing of Finance 7 0
Capital Expenditure (76) (38)
Financing - Issue of Ordinary Share Capital 0 671
-------- --------
(Decrease) / Increase in Cash (95) 628
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Notes:
1. The figures for the six months to 30 June 2007 and 30 June 2006 are
unaudited. The financial information set out above does not constitute full
statutory accounts within the meaning of section 240 of the Companies Act 1985.
2. Copies of this announcement will be sent to shareholders and will be
available for inspection at the Company's registered office at 162 Clontarf
Road, Dublin 3, Ireland.
This information is provided by RNS
The company news service from the London Stock Exchange