Interim Results

RNS Number : 4983E

Condor Resources PLC

29 September 2008

 

 29th September 2008

CONDOR RESOURCES PLC

('Condor', 'the company' or 'the group')

DIRECTORS' STATEMENT

FOR THE SIX MONTHS TO 30 JUNE 2008.

Condor Resources, the AIM listed Central American gold mining company, announces its results for the six months ended 30th June 2008.

HIGHLIGHTS

• The consolidated, unaudited net loss after taxation of the Group in respect of the six months ended 30th June 2008 amounted to £564,141

• Maiden JORC compliant inferred resource of 78,000 ounces gold at 5.1g/t at Arras in Nicaragua 

• Maiden JORC compliant inferred resource of 41,000 ounces gold at 1.22 g/t at El Cacao in Nicaragua

• Maiden JORC compliant inferred resource of 25,000 ounces gold at 1.1 g/t at Kuikuinita in Nicaragua

• Increased JORC compliant inferred resources at La Calera Project in El Salvador to 310,000 ounces of gold at 1.6 g/t from 110,000ounces.

• Increased JORC compliant inferred resources within the El Pescadito Project area in El Salvador by 10% to 430,000 ounces gold at 1.9 g/t and silver up 10% to 22 million ounces silver at 96 g/t.  

• Ministry of the Economy (MINEC) undertaking a Strategic Environmental Evaluation Study of the benefits of mining to the Republic of El Salvador has meant Condor does not have permits to drill on key projects in the country.

• Raised £2,000,000 before expenses by way of a placing of 200,000,000 new ordinary shares with a nominal value of £0.01 each at 1p each.

  
  

POST PERIOD EVENTS

• Decision to cut back operations further in El Salvador given uncertainty surrounding Strategic Environmental Evaluation Study and view that material progress is unlikely before the second half of 2009, which is the earliest Condor is likely to drill on key projects.

Mark Child, Non Executive Chairman of Condor Resources, commented: 'During the 6 month period total JORC inferred resources increased by 90% to 890,000 ounces of gold and by 22% to 22.37 million ounces of silver compared to the beginning of the year. For a small exploration company this is a significant achievement although the majority of the gold and all the silver is in El Salvador where progress has been delayed because of the Mining Review being undertaken by the El Salvador government. On a more positive note, the Board of Condor successfully raised £2m by way of a private placement in June 2008. This new funding will allow the Company to seek projects which would geographically diversify its operations and reduce dependence on the risks of operating in El Salvador. Following the placing, Mr Pierre Moussa joined the Board. As a former CEO of Banque Paribas, he brings a wealth of contacts and will be helping us in identify further mining projects.'  

CONDOR RESOURCES PLC

CHAIRMAN'S STATEMENT

FOR THE SIX MONTHS TO 30 JUNE 2008.

During the six month period ended 30 June 2008 total JORC inferred resources increased by 90% to 890,000 ounces gold and by 22% to 22 million ounces silver compared to the beginning of the year. For a small exploration company this is a significant achievement, shareholders may well ask why the share price has performed so poorly. Approximately 84% of Group's gold and 100% of the silver JORC resources are in El Salvador. Condor has still not been issued environmental permits to drill on its key projects in El Salvador and thus hasn't been able to drill these key projects for 18 months. As a result, Condor has focused its drilling in Nicaragua and further scaled back operations in El Salvador.

In Nicaragua, maiden JORC inferred resources totalling 140,000 ounces gold were defined through 2,000 meters of drilling and a similar amount of trenching. At the San Albino-Murra concession a total of 1,006 meters drilling was completed and a JORC inferred resource of 78,000 ounces gold at 5.1g/t was defined. Condor's geologists are confident this can be doubled with minimal drilling. At El Cacao a further 871meters of drilling was completed, bringing the total drilled on the project to 2,867 meters. A maiden JORC inferred resource of 41,000 ounces gold was defined.

In El Salvador, the Group completed a 4,500 meter trench program at La Calera project and announced a 178% increase in the resource to 310,000 ounces gold. Similarly, through trenching at El Pescadito project the resource increased 10% to 430,000 ounces gold and 22 million ounces silver. There is only so much that can be done through trenching alone!

At the time of writing, the Strategic Environmental Evaluation Study (SEE) of the benefits of mining to the Republic of El Salvador appears to have stalled as the Government has yet to announce the appointment of an independent consultant to conduct the study. Congress and Municipal elections are scheduled for January 2009, with Presidential elections in March 2009 and a new Government due on 1st May 2009. It increasingly looks like a newly elected Congress, whether controlled by the left wing FMLN party or the incumbent ARENA party will enact a new mining law. The Board has taken the view that it has to be patient; await the outcome of the SEE, elections and inevitable changes to the mining law. Against this backdrop, there is little chance of material progress on the future of Condor's four 100% owned licenses containing 740,000 ounces gold and 22 million ounces silver in El Salvador until the second half of 2009. Staffing levels have been cut back to the minimum necessary to maintain the licenses in good standing.

On a positive note, the Board successfully raised £2m by way of a private placement in June 2008. The new funding permits the Board to seek projects which would geographically diversify its operations and reduce dependence on the risks of operating in El Salvador. Following the placing, Mr Pierre Moussa joined the Board. As a former CEO of Banque Paribas he brings a wealth of contacts. Subsequently, Nigel Ferguson resigned as CEO of the Company. Dr Luc English, has been promoted to Country Manager of El Salvador and Nicaragua, he is ably assisted by a team of three local geologists and Jose Mario Gonzalez, who is the legal representative and in charge of administration.

CONDOR RESOURCES PLC

REVIEW OF OPERATIONS

FOR THE SIX MONTHS TO 30 JUNE 2008.

Nicaragua

In Nicaragua exploration has focused on the group's two key project areas; the Segovia Project (San Albino-Murra and Potrerillos concessions) and Cacao.

On the San Albino-Murra Concession nine reverse circulation drillholes were completed for 1,006 metres. The latest drilling has demonstrated continuation of gold mineralisation down to 90 metres below surface with significant intercepts at depth including four metres at 16.3 grams per tonne gold from 84 metres drill depth (SARC021). The gold-mineralised structure, which dips at a gradient of approximately 45 degrees, has now been traced for 150 metres down-dip from the surface expression where trench sampling has defined a 230 metre surface strike extent. The subsurface gold mineralisation remains open in both directions along strike, and down-dip. Drilling intercepts vary in width and tenure down dip, indicating a pinch-and-swell structure typical of a ductile geological regime. Closer spaced infill-drilling will be required to accurately map out the high-grade lenses. Gold mineralization occurs in sulphide-bearing quartz veins and veinlets hosted by a thick package of quartz-mica-graphite schist. Independent consultants Geosure Exploration and Mining Solutions ('Geosure') calculated an inferred resource of 78,000 ounces at 5.1 grams per tonne gold at Arras.

Initial metallurgical test work was completed by SGS Laboratories, Canada on oxidised and partially oxidised gold mineralised material from the Arras Prospect with encouraging results. Bottle roll gold recovery tests achieved 92% and 93% gold recovery respectively on completely oxidised mineralised samples collected from trenches, and from partially oxidised material from the mineralised zone of a reverse circulation drill hole. These results indicate that the mineralisation at Arras is amenable to processing by direct cyanide leaching with carbon. Further test work is planned on samples of gold mineralisation hosted by fresh rock from the latest deep drilling.

In addition to the resource drilling on the Arras Prospect an ongoing programme of rock chip sampling and geological mapping, with follow-up trenching and, where appropriate mine adit sampling has identified and advanced numerous gold occurrences over a 15 kilometre strike length. Methodical trench testing of rock chip samples that have returned assay results exceeding one gram per tonne gold has delineated a number of prospects. Follow-up trenching has demonstrated strike continuity to mineralisation in eight of these, such as El Mango with a best intercept of four metres at 10.5 grams per tonne gold and a strike length already defined over more than 100 metres. 

At Cacao, a resource drilling programme initiated at the end of 2007 was completed.  871 metres of reverse circulation and diamond core drilling was completed in 10 drill holes to bring the total drilling at El Cacao to 2,170 metres, including 697 metres of diamond core, in addition to 1,121 metres of trenching. Twenty metre spaced infill trenches aimed at better defining the surface resource on the Cacao Prospect returned the best surface intercept to date with seven metres at 2.39 grams per tonne gold (Trench CCTR028). The outcropping part of the Cacao vein has now been trench tested for surface gold mineralisation at 20 metre spacing over the entire 600 metre strike length of outcrop. The drilling has tested subsurface gold mineralisation beneath the outcrop at 40 metre line spacing over a 400 metre strike length, and approximately 80 metre spacing over the remaining 200m of strike. Drill testing has been to a maximum of 160 metre below surface with one of the best intersections to date returned from the deepest drillhole; 4.15 metres at 2.93 grams per tonne gold from 163 metres drill depth (CCRD020). The high-grade gold intercepts encountered in the deeper drilling points to a rich level below the currently drill-tested upper 100 metres of the system. The Cacao vein remains open at depth and open along strike in both directions where it is unexplored beneath recent sedimentary cover sequences. Geosure calculated an inferred resource of 41,000 ounces at 1.2 grams per tonne gold at Cacao.

CONDOR RESOURCES PLC

REVIEW OF OPERATIONS

FOR THE SIX MONTHS TO 30 JUNE 2008.

The focus of field work on the western side of Nicaragua provided an opportunity to re-assess the style of mineralisation and the preferred exploration model for the Columbus and Kuikuinita concessions in the light of new data. As a result of this study the decision was made to reduce the concession areas of Columbus and Kuikuinita at the end of the reporting period. These reductions in concession area will reduce the burden of future land tax payments which under Nicaraguan laws increase in value as a concession matures.

An inferred resource of 25,000 ounces at 1.1 grams per tonne gold was calculated by Geosure for the Los Indios area of the Kuikuinita Concession. The resource utilised trenching and drilling completed by a previous explorer as well as the trenching completed by Condor over the past two years. Re-examination of the style of gold mineralisation at Kuikuinita was supplemented with a petrographic study.  In addition to the documented gold mineralisation it is believed that Kuikuinita has greater base metal potential than had previously been recognised and re-assaying of selected samples for base metals is underway. 

Geological mapping completed at Columbus at the end of 2007 was integrated with the trenching and drilling data and the geological mineralisation model re-assessed. Condor now believes that gold mineralisation is a structurally-controlled epithermal system and a set of north-east orientated structures have been identified as future exploration targets.

The Morritas Concession was formally relinquished in June 2008. A number of prospecting trips failed to find any signs of the gold mineralisation; quartz veining or hydrothermal alteration, in the well-exposed volcanic terrain and check sampling of a reported gold soil anomaly failed to confirm anomalous gold results. Condor concluded that the concession area is unlikely to host significant gold resources.

El Salvador

In El Salvador Condor has focused exploration on El Pescadito and La Calera.

Exploration at the El Pescadito Project was designed to define the location and grade of mineralisation along three northwest trending structurally controlled vein systems, the Main Divisidero Structure, the Agua Caliente-Virginia-Taladro Structure, and the Gigante Structure. All three structures host historic mining operations. Exploration conducted included reconnaissance geological mapping, rock chip sampling (6 samples), and 768.50 metres of trenching (16 trenches) at the Taladro Prospect along the Agua Caliente-Virginia-Taladro Structure. A revised resource calculation at the Divisidero (Carolina) Prospect, and a maiden resource calculation at the Gigante Prospect was also completed.  

Anomalous rock chip values (up to 3.6 grams per tonne gold) and trench results (one metre at 12.4 grams per tonne gold, 1376 grams per tonne silver) from Taladro continues to highlight the exploration potential of the Prospect. The revised Divisidero (Carolina) Resource, the maiden Gigante Resource, and the Loma del Caballo Resource combine to bring the total reported resources within the EL Pescadito Project to 430,000 ounces of gold, 22 million ounces of silver.

Exploration at the La Calera Project focused on defining the extent of the mineralisation at the Calera Prospect hosted by the northwest trending Rosa, Rosa West, Calichal, Escobar and Acevedo vein systems. Activities involved the calculation of a revised resource based on the additional information generated by 4,600 metres of trenching completed in 2007. Geosure calculated a revised JORC Code Compliant Inferred Resource of the Calera vein systems at some 310,000 ounces of contained gold and 280,000 ounces of contained silver. The figure incorporates all trenching and drilling completed to date, and represents an increase in resources of approximately 178 percent.

The combined gold resources for El Salvador now stands at some 750,000 ounces of gold, and 22 million ounces of silver.

CONDOR RESOURCES PLC

REVIEW OF OPERATIONS

FOR THE SIX MONTHS TO 30 JUNE 2008.

A continued delay in the granting of Environmental Permits by the Ministry of Environment and Natural Resources (MARN) has frustrated exploration programs by restricting all drilling activities to the Pescadito Concession (El Pescadito Project), where a permit was awarded previously. Staffing levels have been cut back to the minimum necessary to maintain the licences in good standing. Condor, along with all other exploration and mining companies in El Salvador, continues to lobby the government for the issue of these permits to allow drilling and mining of economic resources.

Resource Upgrade

Following the resource calculations undertaken by Geosure the Group's global resource now stands at approximately 890,000 ounces gold and 22 million ounces silver:

Nicaragua Projects
	Tonnes	Average Gold Grade (g/t)	Contained Gold (oz)	Average Silver Grade (g/t)	Contained Silver (oz)	JORC Category
Arras	480,000	5.1	78,000	-	-	Inferred
El Cacao	1,100,000	1.2	41,000	-	-	Inferred
Kuikuinita	710,000	1.1	25,000	-	-	Inferred
Subtotal	2,290,000		144,000
El Salvador Projects
	Tonnes	Average Gold Grade (g/t)	Contained Gold (oz)	Average Silver Grade (g/t)	Contained Silver (oz)	JORC Category
Pescadito	7,100,000	1.9	434,000	96	22,000,000	Inferred
La Calera	6,000,000	1.6	312,000	1.4	280,000	Inferred
Subtotal	13,100,000		746,000
Total	15,000,000	1.8	890,000	53	22,000,000	Inferred

Note that all values are rounded to two significant figures. The Total Resource was calculated from un-rounded values before being rounded to two significant figures.

CONDOR RESOURCES PLC

CONSOLIDATED INCOME STATEMENT

FOR THE SIX MONTHS TO 30 JUNE 2008

		Six months to 30.06.08 unaudited		Six months to 30.06.07 unaudited
		£		£
CONTINUING OPERATIONS
Operating costs		(95,720)		(394,140)
Administrative expenses		(484,389)		(367,427)
OPERATING LOSS		(580,109)		(761,567)
Finance income		15,968		70,168
LOSS BEFORE TAXATION		(564,141)		(691,399)
Taxation		-		-
LOSS FOR THE PERIOD		(564,141)		(691,399)
Attributable to:		(564,141)		(691,399)
Equity holders of the parent
Earnings per share expressed
in pence per share:
Basic		(0.4)		(0.53)

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

		30.06.08 unaudited		31.12.07 unaudited		30.06.07 unaudited
		£		£		£
Losses in the period		(564,141)		(665,241)		(691,399)
Exchange difference		12,976		(1,051)		(3,353)
Share capital		2,000,000		-		5,000
Share premium		(154,552)		-		46,022
Share option reserve		40,000		25,463		-
Net addition/(reduction) to reserves		1,334,283		(640,829)		(643,730)
Opening reserves		6,738,856		7,379,685		8,023,415
Closing reserves		8,073,139		6,738,856		7,379,685

CONDOR RESOURCES PLC

CONSOLIDATED BALANCE SHEET

AS AT 30 JUNE 2008

		30.06.08 unaudited		31.12.07 unaudited		30.06.07 unaudited
		£		£		£
ASSETS
NON-CURRENT ASSETS
Property, plant and equipment		115,064		143,281		111,975
Intangible assets		5,881,754		5,525,962		4,984,270
Trade and other receivables		12,885		19,725		6,281
		6,009,703		5,688,968		5,102,526
CURRENT ASSETS
Trade and other receivables		179,847		59,841		74,096
Cash and cash equivalents		2,119,885		1,111,020		2,319,142
		2,299,732		1,170,861		2,393,238
LIABILITIES
NON-CURRENT LIABILITIES
Trade and other payables		10,077		13,127		-
		10,077		13,127		-
CURRENT LIABILITIES
Trade and other payables		226,219		107,846		116,079
		226,219		107,846		116,079
NET CURRENT ASSETS		2,073,513		1,063,015		2,277,159
NET ASSETS		8,073,139		6,738,856		7,379,685
SHAREHOLDERS' EQUITY
Called up share capital		3,303,118		1,303,118		1,303,118
Share premium		7,197,956		7,352,508		7,352,508
Legal reserves		71		71		60
Share options reserve		174,738		134,738		109,275
Exchange difference		11,914		(1,062)		(3,353)
Retained earnings		(2,614,658)		(2,050,517)		(1,381,923)
Total shareholders' equity		8,073,139		6,738,856		7,379,685
TOTAL EQUITY		8,073,139		6,738,856		7,379,685

CONDOR RESOURCES PLC

CONSOLIDATED CASH FLOW STATEMENT

FOR THE SIX MONTHS TO 30 JUNE 2008

		Six		Six
		Months to		Months to
		30.06.08 unaudited		30.06.07 unaudited
		£		£
Cash flows from operating activities
Loss before tax		(564,141)		(691,399)
Exchange rate difference		-		(3,353)
Depreciation charges		2,484		14,918
Finance income		(15,968)		(70,168)
		(577,625)		(750,002)
(Increase)/ decrease in trade and other receivables		(90,885)		130,517
Increase/ (decrease) in trade and other payables		771		(61,096)
Net cash used in operating activities		(667,739)		(680,581)
Cash flows from investing activities
Purchase of intangible fixed assets		(336,466)		(520,230)
Purchase of tangible fixed assets		(2,898)		(57,420)
Interest received		15,968		70,168
Net cash used in investing activities		(323,396)		(507,482)
Cash flows from financing activities
Proceeds from share issue		2,000,000		51,022
Net cash generated from financing activities		2,000,000		51,022
Increase/ (decrease) in cash and cash equivalents		1,008,865		(1,137,041)
Cash and cash equivalents at beginning of period		1,111,020		3,456,183
Cash and cash equivalents at end of period		2,119,885		2,319,142

CONDOR RESOURCES PLC

NOTES TO THE FINANCIAL INFORMATION

FOR THE SIX MONTHS TO 30 JUNE 2008

1.    COMPLIANCE WITH ACCOUNTING STANDARDS

    Basis of preparation

This financial information has been prepared in accordance with IAS 34 'Interim financial reporting' as adopted by the European Union. The standards have been applied consistently. The statutory accounts for the year ended 31 December 2007, which have been filed with the Registrar of Companies, were prepared under IFRS and IFRIC interpretations as adopted by the European Union and with those parts of the Companies Act 1985 applicable to companies preparing their account under IFRS. The auditors reported on those accounts; their Audit Report was unqualified and did not contain a statement under either Section 237(2) or Section 237(3) of the Companies Act 1985.

The Interim report is unaudited and does not constitute statutory financial accounts as defined in section 240 of the Companies Act 1985

The Interim Report for the six months ended 30 June 2008 was approved by the Directors on 25 September 2008.

The comparative period presented is that of 30 June 2007. The directors are of the opinion that due to the nature of the group's activities and the events during that period these are the most appropriate comparatives for the current period.

Copies of the Interim Report are available from the Company's website www.condorresourcesplc.com.

2.    ACCOUNTING POLICIES 

    The interim financial information for the six months ended 30 June 2008 have been prepared on the basis of the accounting policies set out in the most recently published financial statement for the Group for the year ended 31 December 2007, which are available on the Company's website www.condorrresourcesplc.com, as the company does not anticipate the addition of new standard to the Group's results for the year ending 31 December 2008.

3.    REVENUE AND SEGMENTAL REPORTING

The Group has not generated any revenue during the period.

The Group's operations are located in England, El Salvador and Nicaragua.

The following is an analysis of the carrying amount of segment assets, and additions to plant and equipment, analysed by geographical area in which the assets are located.

	Carrying amount of segment assets		Additions to property, plant & equipment and intangible assets		Depreciation charged in the period		Carrying amount of liabilities			Result for the period
	Periods ended 30th June
	2008	2007	2008	2007	2008	2007		2008	2007	2008	2007
	£	£	£	£	£	£		£	£	£	£
England	5,762,123	6,225,533	-	165,380	2,484	1,442		203,058	105,340	(429,907)	(223,613)
El Salvador	1,254,139	834,136	2,155	104,102	-	10,800		3,894	5,017	75	(380,254)
Nicaragua	1,293,173	436,095	743	308,168	-	2,676		29,344	5,722	(134,309)	(87,532)
Total	8,309,435	7,495,764	2,898	577,650	2,484	14,918		236,296	116,079	(564,141)	(691,399)

CONDOR RESOURCES PLC

NOTES TO THE FINANCIAL STATEMENTS

FOR THE SIX MONTHS TO 30 JUNE 2008

4.    TAXATION

    There is no current tax charge for the period. The accounts do not include a deferred tax asset in respect of carry forward unused tax losses as the Directors are unable to assess that there will be probable future taxable profits available against which the unused tax losses can be utilised.

5.    EARNINGS PER SHARE

Basic earnings per share is calculated by dividing the earnings attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period.

A reconciliation is set out below:

		Six months to		Six months to
		30.06.08		30.06.07
Basic EPS
Loss for the period		(564,141)		(691,399)
Weighted average number of shares		134,756,197		130,145,086
Loss per share (in pence)		(0.4)		(0.53)

In accordance with IAS 33, as the Group has reported a loss for the period, diluted earnings per share is not included.

6.    CALLED-UP SHARE CAPITAL

		30.06.08		30.06.07
		£		£
Authorised
1,000,000,000 ordinary shares of 1p each		10,000,000		10,000,000
Allotted and fully paid
330,311,753 (30.06.08: 130,311,753) ordinary shares 1p each		3,303,118		1,303,118

On 26 June 2008 the Company issued:

•  200,000,000 ordinary shares of 1p each at par; and

• 47,500,000 warrants exercisable within 3 years at the following strike prices:

Number warrants	Strike price (p)
27,500,000	1.0
10,000,000	1.5
10,000,000	2.0

CONDOR RESOURCES PLC

NOTES TO THE FINANCIAL STATEMENTS

FOR THE SIX MONTHS TO 30 JUNE 2008

             7.     RELATED PARTY TRANSACTIONS

During the half year the Company paid the following amounts to its subsidiaries in Nicaragua and El Salvador:

	30.06.08		30.06.07
	Payments	Outstanding balance	Payments	Outstanding balance
	£	£	£	£
Minerals Morazan S.A. de C.V.	31,601	1,718,043	155,040	1,278,161
Condor S.A.	64,208	1,587,930	175,758	961,944

During the half year the company received consultancy advice from the following related parties:

		30.06.08		30.06.07		Outstanding at year end
Company	Related party	£		£		£
Ridgeback Holdings Pty Ltd	Nigel Ferguson	67,998		50,000		Nil
Iguana Resources Pty Ltd	Klaus Eckhof	12,000		12,000		Nil
Axial Associates Limited	Mark Child	31,725		14,100		Nil

          8.   SEASONALITY OF THE GROUP'S BUSINESS OPERATIONS

There are no seasonal factors which affects the trade of any company in the group.

Independent review report to Condor Resources plc

We have been engaged by Condor Resources plc to review the interim financial information for the six months ended 30 June 2008 which comprises the unaudited consolidated income statement, the unaudited consolidated statement of changes in equity, the unaudited consolidated balance sheet, the unaudited consolidated cash flow statement and related notes 1 to 8. We have read the other information contained in the interim half-year report and considered whether it contains any apparent misstatements or material inconsistencies with the interim information.

This report is made solely to the Company in accordance with International Standard on Review Engagements (UK and Ireland) 2410 issued by the Auditing Practices Board. Our work has been undertaken so that we might state to the Company those matters we are required to state to them in an independent review report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company, for our review work, for this report, or for the conclusions we have formed.  

Respective responsibilities of directors and auditors

The interim report, including the interim financial information contained therein, is the responsibility of, and has been approved by, the directors. The directors are responsible for preparing the interim report in accordance with the AIM Rules issued by the London Stock Exchange, which requires that the interim report must be prepared and presented 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.

Our responsibility is to express to the Company a conclusion on the interim consolidated financial information in the interim report based on our review.  

Scope of review 

We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410, 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity' issued by the Auditing Practices Board for use in the United Kingdom. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the interim consolidated financial information in the interim half-yearly report for the six month period ended 30 June 2008 is not prepared, in all material respects, in accordance with International Accounting Standard 34 as adopted by European Union and the AIM Rules issued by the London Stock Exchange.

Mazars LLP

Chartered Accountants
London

29 September 2008

 

END

 

 

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