Geiger Counter Ltd : Annual Financial Report

GEIGER COUNTER LIMITED

Date of Announcement: 21/12/2011

RELEASE OF ANNUAL REPORT AND FINANCIAL STATEMENTS

The Directors announce the release of the Annual Report and Financial Statements
for the year ended 30 September 2011.

CHAIRMAN'S STATEMENT - FOR THE YEAR ENDED 30 SEPTEMBER 2011

Introduction

The year to 30 September 2011 has been a relatively difficult period for stock
markets. The markets were relatively benign until July 2011, when the
combination of slowing global growth together with issues around sovereign debt
in Europe, caused market participants to rush for the exit. The stock market (as
represented by S&P 500) over that period managed to gain 4.7%.

Unemployment and the housing market in the US remain a concern for the Federal
Reserve. The additional sovereign debt issue in Europe has caused the Federal
Reserve to announce that interest rates are not rising at least until June
2013. Loose monetary policy continues to be the weapon of choice to try to get
the economy recovering.

The emerging economies, such as China and Brazil have been sustaining global
growth, but even now, there are increasing concerns that they might slow down.

In the uranium space, while sentiment remains poor, there have been a number of
encouraging developments. The Investment Manager has already referred to the
corporate activity but I felt it was particularly relevant that the Australian
Government has given the go ahead for uranium sales to India while the American
Government which has been somewhat lukewarm to new mining projects has realised
that in 2013 when the supply agreement with Russia finishes, it will have to
look for new sources. Finally, one has to ask the question: if Japan and Germany
believe they can find alternative energy sources to uranium, when will they tell
the world what they are?

Investment Performance

The Company's share price decreased from 67.25p to 62.0p over the year, which is
a decline of 7.8%. This compares favourably with uranium equities (as
represented by Cameco) which have declined by 33% over the same period.

Your board is very pleased with the way New City Investment Managers have
continued to make progress with the portfolio.

Outlook

The outlook for uranium is very bright. Over the last few months, we have begun
to see the appetite for the sector begin to improve, with a number of M&A deals
surfacing. Production continues to struggle.

We continue to believe that the shortage of uranium is coming and we will see
new players driving the market to secure long term uranium supply.

We remain bullish of the prospects for the Company going forward.

Board Structure

As you are aware Bryan Lenygon sadly passed away on 25 November 2010, however,
we are pleased to announce that as from 1 May 2011 Richard Lockwood was
appointed to the Board.

George Baird
Chairman
December 2011

INVESTMENT ADVISER'S REPORT - FOR THE YEAR ENDED 30 SEPTEMBER 2011

Looking back over the last 12 months, uranium prices have been relatively
benign. It has moved from $46.50/lb to $52.50/lb which represents an increase of
13% for the year. However, this masks the underlying volatility the sector has
faced in that same period. Uranium prices reached $73/lb in January 2011 before
hitting a low of $49.25/lb in August 2011 and then settling at $52.50/lb.

The moves were marked by a key event, the tsunami and earthquake in North East
Japan which gave rise to the damage of the nuclear reactor at Fukushima. Prior
to the event, the uranium space was gathering momentum as demand and supply for
uranium tightened leading to an improvement in uranium prices. This in turn led
to a substantial rally in uranium mining shares.

Post Fukushima, the appetite for uranium and uranium mining shares disappeared.
There was an aggressive sell off of uranium inventory as short term investors
feared the worst and the on-going news of Governments reviewing their nuclear
policy turned investors negative of the sector.

That was six months ago. Subsequently, state owned Enterprises such as Guangdong
Nuclear Power Group and Sichuan Hanlong Group continued with their respective
bid talks with Kalahari Minerals and Bannerman Resources, of which we are
shareholders. Without question, there is a market for quality large uranium
deposits.

Recently, we have also seen Cameco and Rio Tinto both bid for Hathor, a uranium
explorer in the Athabasca basin in Canada. We believe that these moves represent
strong companies looking to lock in long term uranium supply at a time when the
market for these assets is depressed.

Looking ahead, we do not see many alternatives to nuclear power and hence
believe that countries which are hungry for energy will continue to include
nuclear power into their mix of energy supply. China has recently given the
green light for approving new nuclear power stations again and even Japan is
looking to re-start all the nuclear power stations which are under inspection by
2012.

We have been gradually increasing our weighting in quality uranium companies
through this period as we believe that we will see a revival in the sector. The
precise trigger for this is still unclear but this very fact is that the worst
is behind us.

John Wong
CQS Asset Management Limited
December 2011


For further information, please contact:

Lisa Neil
Geiger Counter Limited
Telephone number: [phone]
Email:[e-mail]

Beth Harris
Threadneedle Communications
Telephone number: [phone]
Email: [e-mail]

 



Annual Financial Report: 


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