Final Results
Regency Mines PLC
18 November 2005
Regency Mines plc
Preliminary Results for the year ended 30 June 2005
Dated: 18 November 2005
CHAIRMAN'S STATEMENT
The financial period to 30 June 2005, the first of Regency's existence, was one
of rapid development.
On 22 February the Company achieved an important milestone, listing on the AIM
Market of the London Stock Exchange. Immediately prior to Admission Regency
raised £500,000 before expenses by way of an offer for subscription of
25,000,000 new shares at 2p to fund the listing, exploration, and working
capital. The Offer for Subscription and the Admission Document can be
downloaded from the Company's website at www.regency-mines.com.
CORPORATE FINANCE AND INVESTMENT
In the Admission Document the Company stated that over and above the exploration
and development of the properties it would acquire on Admission it would pursue
an active strategy of investment in the mining and mineral sector to enhance the
value of Regency's assets.
On the 3 May 2005 the Company subscribed for 4,200,000 founder shares in Thor
Mining plc ('Thor') at par and on 6 June 2005 the Company subscribed for a
further 4,000,000 seed shares in Thor at a price of 1 pence per share. On 14
November 2005 the shares had risen to 3.375 pence, giving the Company an
unrealised book profit on the investment of over £230,000. Thor's
business is the development of the Molyhil tungsten/molybdenum deposit in the
Northern Territory of Australia, and exploration of nearby areas and is traded
on AIM.
On 29 July 2005 the Company's subsidiary Red Rock Resources plc ('Red Rock') was
admitted to AIM, and placed 27.3 million shares at 2p a share. Following a
subsequent share issue by Red Rock, Regency now owns approximately 62% of Red
Rock, making it the company's largest shareholder. On 14 November the price of
Red Rock was 2.625 pence per share, valuing the Company's investment at
£2,650,000. The assets acquired by Red Rock, which consist of iron ore,
manganese, and uranium tenements in Western Australia, the Northern Territory,
and Tasmania, were acquired by Regency following its admission to AIM, and at
the current Red Rock share price the investment in Red Rock represents a
considerable unrealised book profit to Regency. On 14 October Red Rock obtained
a secondary listing on the Frankfurt Stock Exchange.
EXPLORATION
The Company's efforts to begin early exploration at its Lake Johnston nickel
projects were thwarted by unusually heavy rains that caused vehicles to become
bogged down.
At the Bundarra copper-gold project in Queensland there was more success. A
programme of soil sampling and geological mapping has been completed over three
prospects within the Bundarra project area; Isens, Flora Range and Mt Flora.
At Isens, soil sampling was completed on 200m x 80m centres in open terrain.
Results were significant; peaking at 3.1% copper with 0.9g/t gold and 10.8g/t
silver. Other results included 0.5% copper with 0.36g/t gold and 2.5g/t silver.
Copper and gold anomalism has been outlined over approximately 1500m of strike
and remains open to the west. At surface, mineralisation is up to 30m wide and
hosted by a brecciated, iron-stained quartz-feldspar porphyry. Primary
sulphides are chalcopyrite and pyrite, with secondary copper carbonates of
malachite and azurite. Three traverses of angled Reverse Circulation drilling
is required to test mineralisation at depth.
At Flora Range, soil sampling was completed over 4km of strike on 200m x 80m
centres. Copper and gold anomalism was outlined over the entire 4km of strike
and remains open to the southwest. Maximum results were 2400ppm copper with
28ppb gold and 2.7g/t silver. Mineralisation is hosted by discontinuous lodes
of brecciated granite intruded by veins of iron and malachite stained
quartz-feldspar porphyry. Ten sets of historic workings were located within the
Flora Range area, each commonly returning +2% copper from historic rock chip
sampling by previous explorers. Only one working has been tested by a single RC
hole that, significantly, returned 3m @ 7.2g/t gold from 36m. A ground
geophysical survey (IP) and RC drilling is required to test the peak geochemical
response.
At Mt Flora, the immediate area of historic workings has been subject to much
surface exploration in the past and, consequently, soil sampling and mapping was
focused on potential northern and southern strike extensions to mineralisation.
Sampling returned a peak of 254ppm copper and 7ppb gold. Results confirmed
mineralisation continues northwest of the historic workings for some 2500m, and
also southeast for a further 1800m. However, mineralisation is of a more subtle
nature than that encountered at Isens and Flora Range. This suggests a large,
low-grade disseminated style of mineralisation for Mt Flora. Step out RC or
Diamond drilling of the Mt Flora mineralisation is required.
During August, magnetic and radiometric data from a detailed airborne survey
were processed and imaged. Total count (K, Th, U) radiometric data illustrates
the strong alteration of the Permian sedimentary rocks in contact with the
margin of the Bundarra intrusion, and highlights the potential for economic
accumulations of uranium. Subsequent imaging of the airborne uranium data
revealed several discrete anomalies within the project area. These are
scheduled for ground follow-up during the current field season.
The directors consider the results to date of the sampling and mapping programme
at Bundarra to be encouraging and to justify moving to the next stage of
exploration. The results in the Isens area mean that this will be a focus of
further exploration effort, including drilling. The Flora Range results will
also be followed up by further exploration, including drilling. Continued
mapping and sampling of areas around the edge of the Bundarra intrusion will be
undertaken to test hitherto unexplored areas. The objective remains to identify
and delineate high grade copper zones as well as potential low grade bulk
tonnage targets. Several areas have uranium anomalies identified from the
radiometrics and will be tested by field work.
OUTLOOK
The directors anticipate that 2005-2006 will be another year of growth and
development, expect to undertake further acquisitions, and will consider
farm-ins and joint ventures on certain of its properties.
The directors believe the company's investments in Thor Mining plc and Red Rock
Resources plc will continue to develop in the future.
In the Lake Johnston area exploration will be undertaken.
At Bundarra, the programme of work, including drilling, identified as necessary
to follow up recent geochemistry and mapping, will be carried out. The
encouraging results to date give reason for optimism.
CONCLUSION
In the short period since Admission Regency has advanced towards its objectives
and has increased its range of assets, some commanding independent values in the
stock exchange. Wider recognition of its achievements and ambitions has been
slow to catch up with the pace of these developments.
I thank, on your behalf, our nominated adviser, solicitors, accountants, and
geological advisers for their hard work and support during the period under
review.
Finally, on behalf of the Board, I thank shareholders for the trust and
confidence they have placed in us.
Andrew R. M. Bell
Chairman
16 November 2005
CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE PERIOD ENDED 30 JUNE 2005
Period
10 September 2004 to
30 June 2005
£
Turnover -
Cost of sales -
Gross profit -
Administrative expenses 108,070
Loss on ordinary activities before taxation (108,070)
Taxation -
Loss on ordinary activities after taxation (108,070)
Minority interests 2,433
Retained loss for the period attributable to (105,637)
Shareholders of the Company
Loss per share - basic (0.13) pence
Loss per share - fully diluted (0.13) pence
There are no recognised gains or losses other than the loss for the period.
All the operations are considered to be continuing.
The accompanying accounting policies and notes form an integral part of these
financial statements.
CONSOLIDATED BALANCE SHEET
AS AT 30 JUNE 2005
30 June 2005
£
Fixed assets
Intangible assets 963,348
Current assets
Debtors 28,279
Investments 44,200
Cash at bank 154,334
226,813
Creditors - amounts due within one year (144,244)
Net current assets 82,569
Total assets less current liabilities 1,045,917
Share capital and reserves
Called-up share capital 125,110
Share premium account 991,921
Profit and loss account (105,637)
Other reserves 12,457
Equity shareholders' funds 1,023,851
Minority Interests 22,066
1,045,917
COMPANY BALANCE SHEET
AS AT 30 JUNE 2005
30 June 2005
£
Fixed assets
Intangible fixed assets 579,293
Investments 249,500
828,793
Current assets
Debtors 120,432
Investments 44,200
Cash at bank 96,418
261,050
Creditors - amounts due within one year (26,714)
Net current assets 234,336
Total assets less current liabilities 1,063,129
Share capital and reserves
Called-up share capital 125,110
Share premium account 991,921
Profit and loss account (53,902)
Equity shareholders' funds 1,063,129
CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 30 JUNE 2005
Year ended
30 June 2005
£
Net cash outflow from operating activities (38,975)
Capital expenditure and investment (909,844)
Cash outflow before financing (948,819)
Financing 1,103,153
Increase in cash in the year 154,334
NOTES
The financial information set out above does not constitute statutory accounts
as defined in section 240 of the Companies Act 1985.
The Directors are not recommending the payment of an ordinary share dividend.
The basic loss per share is derived from the ordinary activities after taxation
of £105,637 divided by 78,013,246 ordinary shares, being the weighted average in
issue during the period. The diluted loss per share is calculated using a
weighted average number of ordinary shares in issue inclusive of outstanding
options of 81,413,246.
The balance sheet at 30 June 2005, the profit and loss account, and the cash
flow statement for the period then ended have been extracted from the Group's
statutory financial statements upon which the auditors' opinion is unqualified
and does not include any statement under Section 237 of the Companies Act 1985.
Copies of the report and financial statements will be posted to Shareholders on
24 November 2005 and be available for one month from the Company Secretary at
the registered office from Thursday 24 November 2005.
Alternatively, the report may be downloaded from the Company's website,
www.regency-mines.com
ANNUAL GENERAL MEETING
The Annual General Meeting of the Company will be held at the offices of
Ronaldsons, 3rd Floor, 55 Gower Street, London WC1E 6HQ England, on Wednesday 21
December 2005 at 11.30 a.m.
ENQUIRIES:
Andrew Bell 07766 474849 Red Rock Resources plc Chairman
John Simpson 020 7512 0191 ARM Corporate Finance Ltd Nominated Adviser
Ron Marshman / John 020 7628 5518 City of London PR Limited Public Relations
Greenhalgh
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