Final Results

RNS Number : 4641W

Bezant Resources PLC

18 November 2010

 



18 November 2010

Bezant Resources Plc

("Bezant" or the "Company")

Final Results for the Year Ended 30 June 2010

Bezant (AIM: BZT), the AIM listed gold and copper exploration and development company operating in the Philippines and Tanzania, announces its audited final results for the year ended 30 June 2010.

Highlights:

Mankayan Copper-Gold project, Philippines:

·      Independent JORC compliant Indicated Resource upgrade; 52% increase in copper content and 48% increase in gold content:

o  Approximately 2.9 billion pounds of copper and 4.3 million ounces of gold within the Indicated Mineral Resource of 221.6 million tonnes and the Inferred Resource of 36.2 million tonnes at a 0.4% copper cut-off

·      Upgraded Mineral Resource now consists of an Indicated Resource of 2.42 billion pounds of copper and 3.7 million ounces of gold, along with an Inferred Resource of 0.44 billion pounds of copper and 0.6 million ounces of gold

·      Maintained affiliation with the China Gold Association in Beijing (the "CGA")

o  The CGA continues to provide assistance with the identification of potentially suitable Chinese joint venture partners

Tanzania:

·      Fully earned-in a 50% interest in a package of 9 prospective tenements, together with Prospecting Licences, covering an area of approximately 2,116 square kilometres from two local exploration companies

·      The Company retains its 46% interest in the Mkurumu Project (alongside AngloGold Ashanti 46% and Tanzanian locals 8%)

Corporate:

·      Reflecting exploration activities during the year and costs associated with the ongoing strategic review process for the Mankayan Project, the group incurred a consolidated loss after tax for the year to 30 June 2010 of £1,610,000 (including impairment costs)

·      Placing to raise £1.8 million gross successfully completed in December 2009 to provide additional working capital

Post period end highlights:

·      Independent scoping study commissioned in August 2010 on the Mankayan Project

o  The conceptual (technical and economic) study is considering a potential underground mining operation with associated processing facilities and infrastructure

o  Results of the study expected by the end of Q4 2010

·      Five year extension (until August 2015), secured in August 2010, in respect of the Company's subsidiary, Asean Copper Investments Limited's, option to acquire the remaining 60% of Crescent Mining Development Corporation for approximately PHP2,000,000 (approximately US$45,000)

Gerry Nealon, Executive Chairman of Bezant, commented: 

"During the reporting period, at the Company's principal Mankayan Project, we have defined an independent JORC compliant mineral resource of 221.6 million tonnes Indicated and 36.2 million tonnes Inferred, at a 0.4% copper cut-off. The positive results obtained have reaffirmed our confidence that this project has the potential of hosting a world class copper/gold mine.

In addition to an expected potential maiden Probable Ore Reserve estimate at Mankayan, we look forward to updating shareholders on the results of our independent scoping study; expected to be received towards the end of this year."

For further information, please contact:

Gerry Nealon

Executive Chairman, Bezant Resources Plc

Tel: [phone]

Bernard Olivier

Executive Director, Bezant Resources Plc

Tel: [phone]

James Harris / Matthew Chandler

Strand Hanson Limited

Tel: [phone]

Alastair Stratton

Matrix Corporate Capital LLP

Tel: [phone]

Laurence Read / Beth Harris

Threadneedle Communications (UK)

Email: [e-mail]

Tel: [phone]

Mob: [phone]

or visit www.bezantresources.com

Chairman's Statement

I am pleased to again be able to report to our shareholders upon the further progress made by the Company during its last financial year ended 30 June 2010 and also on our ongoing activities in the subsequent period to the date of this statement.

In the Philippines, the Board is progressing its comprehensive review of the strategic options available in respect of our flagship Mankayan Project situated on the Island of Luzon, approximately 260km north of Manila (the "Mankayan Project" or the "Project"). The review process is considering, inter alia, the potential divestment of all or part of our interest in the Project, the possible identification and assessment of long term commercial or joint venture partners to finance and/or assist with the further evaluation and development of the Project, and the potential advancement of the Project by the Company alone. The Company has maintained its previously announced affiliation with the China Gold Association in Beijing (the "CGA"), who continue to provide the full support and assistance of their Mining Association in identifying a potentially suitable Chinese joint venture partner or equity participant, for the further development of the Project.

In August 2010, the Company announced that it had commissioned a conceptual (technical and economic) study on the Mankayan Project (the "Scoping Study" or the "Study"), from independent consultants TWP Australia Pty. Limited ("TWP") and Mining Plus Pty. Limited ("Mining Plus"). The Study's scope involves the consideration of a potential underground mining operation with associated processing facilities and infrastructure, with key deliverables to include a recommendation as to the optimum mining rate, a preliminary implementation plan and a financial model.  TWP is focusing on the infrastructure and surface facilities, whilst Mining Plus, acting as a subcontractor to TWP, is principally responsible for the mine design and scheduling aspects.  The Study will consider all of the available data compiled on the Project to date, which currently has a JORC compliant Mineral Resource of 221.6 million tonnes Indicated and 36.2 million tonnes Inferred, at a 0.4% copper cut-off.  This equates to an Indicated Resource of 2.42 billion pounds (1.1 million tonnes) of copper and 3.7 million ounces of gold, with a further Inferred Resource of 0.44 billion pounds (0.2 million tonnes) of copper and 600,000 ounces of gold.  This sizeable Resource estimate and the current level of geological modeling of the ore bodies, justifies undertaking this Study in order to enable the Company to better assess the overall economic viability for a mine on site. The Board is also confident of receiving a maiden Probable Ore Reserve estimate (JORC Compliant) for the Project towards the completion of the Study.  It is intended that the Study's results will be used to validate the further work required to potentially initiate and complete a full pre-feasibility study, which in itself may further serve to facilitate a possible divestment of all or part of the Project to a third party.

In Tanzania, the Company has retained its 46 per cent. interest in the "Mkurumu Project" (alongside AngloGold Ashanti 46 per cent. and Tanzanian locals the remaining 8 per cent.) and has now also completed the acquisition of a 50 per cent. interest in a package of certain other prospective Tanzanian tenements via its two year earn-in arrangement with two local exploration companies.  Further to a review of the full exploration results for the Company's Tanzanian projects, the Board has decided to impair all of the exploration and acquisition costs incurred, in the absence of achieving an Inferred Resource estimate within any of the defined tenement areas. 

Accordingly, the final tranche of impairment expenses totaling £244,000, have been incurred during this reporting period.

Reflecting the completion of our exploration studies, the initiation of the Scoping Study and the costs associated with our ongoing strategic review process, the group incurred a consolidated loss after tax for the financial year ended 30 June 2010 (including impairment costs) of £1,610,000 (2009: £1,772,000).

In December 2009, the Company was pleased to announce the placement of 7,832,445 ordinary shares with a new investor, Cubana Investments Limited, at a price of 23 pence per share raising £1,801,462 gross in order to provide additional working capital.  In May 2010, the Company allotted a further 500,000 new ordinary shares in lieu of a £175,000 cash payment due to a consultant to the Company (equating to a price of 35 pence per share).

In August 2010, the Company secured a further extension of its subsidiary's (Asean Copper Investments Limited's) option agreement, originally granted in 2007, to acquire the remaining 60 per cent. of Crescent Mining Development Corporation for approximately PHP2,000,000 (approximately US$45,000). The extension of the option for five years to August 2015, should provide an adequate time period for the potential completion and assessment of feasibility studies on the Mankayan Project.

The Board continues to believe that the Company's core Mankayan Project represents an asset with the potential of hosting a world class copper/gold mine, especially when compared to its peers throughout the Philippines.  It was most encouraging to learn from press announcements in September 2010 that Gold Fields Switzerland Holding, a subsidiary of one of the world's largest gold producers Gold Fields Limited, had entered into an 18-month option agreement (at a value in the order of US$340 million), with Lepanto Consolidated Mining Company and Liberty Express Assets to acquire a 60% interest in the Far Southeast (FSE) gold-copper deposit, which is situated immediately adjacent to the Company's Mankayan Project.

I look forward to reporting upon the results of our Scoping Study and a potential maiden Probable Ore Reserve estimate for the Mankayan Project towards the end of this year and once again thank all of our employees and shareholders for their continuing support.

Gerard A. Nealon

Executive Chairman                                                                              

17 November 2010

Group statement of comprehensive income

For the year ended 30 June 2010

		2010		2009
	Notes	£'000		£'000
Group revenue		-		-
Cost of sales		-		-
Gross profit/(loss)		-		-
Administrative expenses		(1,370)		(948)
Impairment expenses		(244)		(889)
Group operating loss		(1,614)		(1,837)
Interest receivable		4		55
Other income		-		10
Total income		4		65
Loss on ordinary activities  before taxation		(1,610)		(1,772)
Taxation		-		-
Loss for the year		(1,610)		(1,772)
Attributable to: Equity holders of the Company		(1,610)		(1,772)
Other comprehensive (expense)/income:
Foreign currency reserve movement		(3)		47
Other comprehensive (expense)/income for the year		(3)		47
Total comprehensive expense for the year attributable to equity holders of the Company		(1,613)		(1,725)
Loss per share (pence)
Basic & Diluted	2	(3.74p)		(4.52p)

Consolidated statement of changes in equity

For the year ended 30 June 2010

	Share Capital £'000	Share Premium £'000	Other Reserves £'000	Accumulated Losses £'000	Total Equity £'000
Balance at 1 July 2009	1,016	21,904	296	(14,270)	8,946
Current year loss	-	-	-	(1,610)	(1,610)
Foreign currency reserve	-	-	(3)	-	(3)

Total comprehensive expenses for the year	-	-	(3)	(1,610)	(1,613)
Share issues	16	1,960	-	-	1,976
Share issue costs	-	(54)	-	-	(54)
Cost of share-based payments	-	-	39	-	39
Balance at 30 June 2010	1,032	23,810	332	(15,880)	9,294

	Share Capital £'000	Share Premium £'000	Other Reserves £'000	Accumulated Losses £'000	Total Equity £'000
Balance at 1 July 2008	1,016	21,904	165	(12,498)	10,587
Current year loss	-	-	-	(1,772)	(1,772)
Foreign currency reserve	-	-	47	-	47

Total comprehensive expenses for the year	-	-	47	(1,772)	(1,725)
Cost of share-based payments	-	-	84	-	84
Balance at 30 June 2009	1,016	21,904	296	(14,270)	8,946

Consolidated balance sheet

As at 30 June 2010
			2010	2009
	Notes		£'000	£'000
ASSETS
Non-current assets
Intangible assets - goodwill			-	-
Plant and equipment			30	27
Investments			7,429	7,159
Deferred exploration and evaluation costs			-	121
Total non-current assets			7,459	7,307
Current assets
Trade and other receivables			16	101
Cash at bank and in hand			1,938	1,642
Total current assets			1,954	1,743
TOTAL ASSETS			9,413	9,050
LIABILITIES
Current liabilities
Trade and other payables			119	104
Total current liabilities			119	104
NET ASSETS			9,294	8,946
EQUITY
Share capital	3		1,032	1,016
Share premium account	3		23,810	21,904
Share based payment reserve	4		265	226
Other reserves	4		67	70
Accumulated losses	4		(15,880)	(14,270)
SHAREHOLDERS EQUITY			9,294	8,946

Consolidated cash flow statement

For the year ended 30 June 2010

			2010	2009
	Notes		£'000	£'000
Net cash outflow from operating activities	6		(1,228)	(1,238)
Cash flows from investing activities
Interest received			4	55
Other income			31	48
Proceeds from sale of investments			-	12
Payments for plant and equipment			(11)	(6)
Payments to fund exploration			(121)	(201)
Loans to associates and subsidiaries			(123)	(808)
Net cash outflow from investing activities			(220)	(900)
Cash flows from financing activities
Cash proceeds from issue of shares			1,801	-
Share issue costs			(54)	-
			1,747	-
Increase/(Decrease) in cash			299	(2,138)
Cash and cash equivalents at beginning of year			1,642	3,713
Foreign exchange movement			(3)	67
Cash and cash equivalents at end of year			1,938	1,642

Notes to the financial information

For the year ended 30 June 2010

1.  Basis of preparation

The audited financial information set out above, which incorporates the financial information of the Company and its subsidiary undertakings (the "Group"), has been prepared using the historical cost convention and in accordance with International Financial Reporting Standards ("IFRS") including IFRS 6 'Exploration for and Evaluation of Mineral Resources', as adopted by the European Union ("EU") and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS.

The audited financial information contained in this announcement does not constitute the Company's full financial statements for the year ended 30 June 2010 or 2009, but is derived from those financial statements, approved by the board of directors. The auditors' report on the 2010 accounts was unqualified and did not contain any statement under section 498(2) or (3) of the Companies Act 2006.  The full audited financial statements for the year ended 30 June 2010 will be delivered to the Registrar of Companies and filed at Companies House following the Company's forthcoming annual general meeting.

2.  Loss per share

The basic and diluted loss per share have been calculated using the loss for the 12 months ended 30 June 2010 of £1,610,000 (2009: £1,772,000). The basic loss per share was calculated using a weighted average number of shares in issue of 42,993,758 (2009: 39,162,223). The diluted loss per share has been calculated using an additional weighted average number of shares in issue and to be issued of 45,191,558 (2009: 41,360,023). The diluted loss per share and the basic loss per share are recorded as the same amount, as the conversion of share options decreases the basic loss per share, thus being anti-dilutive.

3.  Share capital
	Number	Class	Nominal value	Year ended 30 June 2010	Year ended 30 June 2009
				£'000	£'000
	Authorised
	690,432,500	Ordinary	0.2p	1,381	1,381
	7,959,196	Deferred	4p	319	319
	625,389	Deferred	99p	619	619
				2,319	2,319
	Allotted, called up and fully paid
	47,494,668 (2009: 39,162,223)	Ordinary	0.2p	94	78
	7,959,196	Deferred	4p	319	319
	625,389	Deferred	99p	619	619
				1,032	1,016
					Number of shares
	The movement in the share capital is summarised below:
	As at 1 July 2009				39,162,223
	5 January 2010 - Subscription shares issued				7,832,445
	21 May 2010 - Fee shares issued for services rendered				500,000
	As at 30 June 2010				47,494,668

			2010
			£'000
	The share premiums arising as a result of the above share transactions were as follows:
	As at 1 July 2009		21,904
	5 January 2010 - Subscription shares issued		1,786
	21 May 2010 - Fee shares issued for services rendered		174
			23,864
	Less: share issue costs		(54)
	As at 30 June 2010		23,810

4.  Statement of movement on reserves
	Share-based payment reserve	Foreign exchange reserve	Revaluation reserve	Accumulated losses
	£'000	£'000	£'000	£'000
At 1 July 2009	226	70	-	(14,270)
Cost of share-based payments	39	-	-	-
Current year loss	-	-	-	(1,610)
Currency translation differences on foreign operations	-	(3)	-	-
At 30 June 2010	265	67	-	(15,880)

5.  Reconciliation of movements in shareholders' funds
	2010	2009
	£'000	£'000
Loss for the year	(1,610)	(1,772)
Shares issued less costs	1,922	-
Currency translation differences on  foreign currency operations	(3)	47
Cost of share-based payments	39	84
Opening shareholders' funds	8,946	10,587
Closing shareholders' funds	9,294	8,946

6.  Reconciliation of operating loss to net cash outflow from operating activities
	2010	2009
	£'000	£'000
Group operating loss	(1,610)	(1,772)
Depreciation and amortisation	8	11
Interest income	(4)	(55)
Share-based payment charge	39	84
Other income	-	(10)
VAT refunds received	(31)	(38)
Impairment in investments	244	767
Foreign Exchange loss	(135)	(185)
Loss on investments	-	122
Provision for loan recoverability	-	-
Shares issued in lieu of payment	175	-
(Increase)/decrease in debtors	85	(106)
Increase/(decrease) in creditors	1	(56)
Net cash outflow from operating activities	(1,228)	(1,238)

7.  Availability of Annual Report and Financial Statements

Copies of the Company's full Annual Report and Financial Statements are expected to be posted today to those shareholders who have elected to receive hardcopy shareholder communications from the Company and, once posted, will also be made available to download from the Company's website at www.bezantresources.com.

The Annual Report and Financial Statements will also be made available for inspection at the Company's registered office during normal business hours on any weekday. Bezant Resources Plc is registered in England and Wales with registered number 02918391. The registered office is at Level 6, Quadrant House, 4 Thomas More Square, London E1W 1YW.

8.  Annual General Meeting

The Company's next Annual General Meeting ("AGM") will be held on 10 December 2010 and a formal Notice of AGM and proxy form have today been posted to those shareholders who have elected to receive hard copy shareholder communications from the Company and can also be downloaded from the Company's website at www.bezantresources.com.

 

END

 

 

FR FFDFWAFSSEEF