Final Results
Tertiary Minerals PLC
11 December 2006
Tertiary Minerals plc
Final Results
Chairman's Statement
I am pleased to report that the preliminary agreement we signed with a Saudi
business consortium in 2005 for funding the US$7 million cost of feasibility
studies for our Ghurayyah rare-metal project in Saudi Arabia was converted into
a full joint venture agreement in March this year, and funds have been committed
by the joint venture partners.
Ghurayyah Preliminary Feasibility Study
The Preliminary Feasibility Study is now well underway. Metallurgical testwork,
using a three tonne sample obtained from previously collected drill samples, has
now advanced to the stage where the initial mineral concentration scheme is
largely defined. This has resulted in improvements in metal recoveries and
reductions in reagent usage which should combine to reduce operating costs from
our 2002 estimates. A further drilling programme has generated a 55 tonne sample
which will form the basis for pilot scale testing of the proposed bulk
concentration method. Further metallurgical testwork, designed to separate the
contained tantalum, niobium, zircon and yttrium, is also in progress and should
be completed early in 2007.
A significant breakthrough in the current mineral processing testwork has been
made with the development of a process that will allow the use of seawater as
the mineral processing medium. This provides a sustainable alternative to the
use of groundwater resources which are scarce in Saudi Arabia. Environmental
studies have also started which will ultimately lead to the preparation of a
comprehensive Environmental Management Plan.
The marketing plan is progressing on track with strong interest in the project's
future production being shown by leading industry participants. It is likely
that the project will be designed to produce separate tantalum and niobium
products in order to maximize project revenues. The outlook for both the
tantalum and niobium markets remains strong. In addition, excellent local
markets have been identified for the zircon contained in the Ghurayyah deposit
provided that current metallurgical testwork shows that it can be produced to
the desired specification. The recovery of an yttrium product will also be
evaluated. The Saudi Government has asked that we do not develop a separate
uranium product for sale.
The preliminary feasibility study is scheduled for completion by the end of
2007.
Sunrise Diamonds plc
Our associated company Sunrise Diamonds plc ('Sunrise Diamonds') (23.45% held)
has continued to make excellent progress in exploring its diamond projects in
Finland during the year. It has announced a number of new diamondiferous
kimberlite discoveries and a significant joint venture with Canada's Nordic
Diamonds Ltd that will give it access to previous kimberlite discoveries made in
the 1990's by Ashton Mining.
Although it is disappointing to see that this progress is not reflected in a
stronger share price for Sunrise Diamonds, its shares have traded consistently
at more than twice the price at which Tertiary shareholders were offered shares
in the lead up to the admission of Sunrise Diamonds to AIM last year. The
Board's belief is that Sunrise Diamonds holds an exceptionally interesting
exploration portfolio and database in Finland and that it is substantially
undervalued at the current market price.
Other Exploration Projects
The Company's focus this year on advancing the Ghurayyah project has meant that
our Scandinavian gold and base-metal portfolio was allocated only limited
expenditure. The Company is considering strategic options for these projects,
including several joint venture approaches and the resumption of exploration
once funding levels permit.
Annual Results
The Group reported a loss of £250,934 for the year (2005: £415,803).
In Conclusion
I would like to take this opportunity to thank all of my staff and fellow
Directors who have worked hard to advance the Company's interests this year. It
has been a year of solid progress which we expect will result in further reward
for our shareholders.
Patrick L Cheetham
Executive Chairman
8 December 2006
Further Information:
Patrick Cheetham, Tertiary Minerals Plc. Tel: +44 (0)1625-626203.
Ron Marshman/John Greenhalgh, City of London PR Ltd. Tel: +44 (0)20-7628-5518
Web-site: www.tertiaryminerals.com
Tertiary Minerals plc
Consolidated Profit and Loss Account
for the year ended 30 September 2006
2006 2005
£ £
Exploration costs written off 52,077 294,088
Administrative expenses 227,250 310,269
---------- ----------
Operating loss (279,327) (604,357)
Share of loss of associate (48,294) (44,892)
Profit on disposal of intangible asset - 75,100
Profit on disposal of tangible asset 504 -
Profit arising from the increase in value of the
Group's share of the net assets of Sunrise Diamonds
resulting from share issues 44,357 134,371
Interest receivable 28,268 22,579
Share of interest receivable of associate 3,558 1,396
---------- ----------
Loss on ordinary activities before taxation (250,934) (415,803)
Tax on loss on ordinary activities - -
Loss for the year (250,934) (415,803)
---------- ----------
Loss per share - basic (pence) (0.49) (0.93)
---------- ----------
All amounts relate to continuing activities.
Tertiary Minerals plc
Consolidated Statement of Total Recognised Gains and Losses
for the year ended 30 September 2006
2006 2005
£ £
Loss for the year (250,934) (415,803)
Foreign exchange translation differences on foreign
currency net investments in subsidiaries (21,507) (19,488)
---------- ----------
Total recognised losses since last accounts (272,441) (435,291)
---------- ----------
Tertiary Minerals plc
Balance sheets
at 30 September 2006
Group Group Company Company
2006 2005 2006 2005
£ £ £ £
Fixed assets
Intangible assets 1,158,926 943,219 - -
Tangible assets 9,898 5,676 6,500 -
Investment in subsidiary - - 224,889 224,889
Investment in associate - - 215,250 150,000
Share of net assets of
associate 222,221 157,350 - -
-------- -------- -------- --------
1,391,045 1,106,245 446,639 374,889
-------- -------- -------- --------
Current assets
Debtors 57,197 65,705 3,122,500 2,334,206
Cash at bank and in hand 884,110 435,969 385,305 424,940
-------- -------- -------- --------
941,307 501,674 3,507,805 2,759,146
Creditors: amounts
falling due within one
year (71,052) (37,916) (37,274) (25,074)
-------- -------- -------- --------
Net current assets 870,255 463,758 3,470,531 2,734,072
-------- -------- -------- --------
Net assets 2,261,300 1,570,003 3,917,170 3,108,961
-------- -------- -------- --------
Capital and reserves
Called up share capital 545,127 464,210 545,127 464,210
Share premium account 4,259,683 3,376,862 4,259,683 3,376,862
Merger reserve 131,096 131,096 131,096 131,096
Profit and loss account (2,674,606) (2,402,165) (1,018,736) (863,207)
-------- -------- -------- --------
Shareholders' funds 2,261,300 1,570,003 3,917,170 3,108,961
-------- -------- -------- --------
Tertiary Minerals plc
Consolidated Cash Flow Statement
for the year ended 30 September 2006
2006 2005
£ £
Net cash outflow from operating activities (217,465) (303,749)
Returns on investment and servicing of finance
Interest received 28,268 19,898
----------- -----------
Net cash outflow from operating activities (189,197) (283,851)
after returns on investments and servicing of finance
----------- -----------
Capital expenditure and financial investment
Purchase of intangible fixed assets (230,324) (304,658)
Purchase of tangible fixed assets (9,520) (3,675)
Receipts from sale of intangible fixed assets - 150,000
Receipts from sale of tangible fixed assets 4,166 -
----------- -----------
Net cash outflow from capital expenditure and financial
investment (235,678) (158,333)
----------- -----------
Acquisitions and disposals
Payments to acquire investment in associate (65,250) (150,000)
----------- -----------
Net cash outflow from acquisitions and disposals (65,250) (150,000)
----------- -----------
Financing
Issue of share capital (net of expenses) 963,738 475,197
Exchange differences (25,472) (4,710)
----------- -----------
Net cash inflow from financing 938,266 470,487
----------- -----------
Increase/(decrease) in cash 448,141 (121,697)
----------- -----------
Notes:
1 Publication of Non-Statutory Accounts
The financial information set out in this announcement does not constitute the
Company's Statutory Accounts for the period ended 30 September 2006 or 2005. The
financial information for 2005 is derived from the Statutory Accounts for 2005,
which have been delivered to the Registrar of Companies. The auditors have
reported on the 2005 and 2006 accounts; their reports were unqualified and did
not contain statements under section 237 of the Companies Act 1985. The
Statutory Accounts for 2006 will be delivered to the Registrar of Companies
following the Company's Annual General Meeting.
2 Reconciliation of movements in shareholders' funds
Group Group Company Company
2006 2005 2006 2005
£ £ £ £
Loss for the year (250,934) (415,803) (155,529) (169,979)
Exchange differences (21,507) (19,488) - -
Shares issued during the year 963,738 475,197 963,738 475,197
--------- --------- --------- ---------
Increase in shareholders'
funds 691,297 39,906 808,209 305,218
--------- --------- --------- ---------
Opening shareholders' funds 1,570,003 1,530,097 3,108,961 2,803,743
--------- --------- --------- ---------
Closing shareholders' funds 2,261,300 1,570,003 3,917,170 3,108,961
--------- --------- --------- ---------
3 Reconciliation of operating loss to net cash outflow from operating activities
2006 2005
£ £
Operating loss (279,327) (604,357)
Depreciation charge 3,301 3,035
Depreciation released on disposal (2,169) -
Profit on disposal of tangible fixed assets 504 -
Intangible fixed assets written off 18,582 305,921
Disposal of intangible fixed assets - (74,900)
Decrease in debtors 8,508 4,878
Increase/(Decrease) in creditors 33,136 (24,532)
Share of operating loss of subsidiary prior to
it becoming an associate - 86,206
-------- --------
Net cash outflow from operating activities (217,465) (303,749)
-------- --------
4 Reconciliation of cash flow to movement in net funds
Cash at bank and in
hand
£
At 30 September 2006 884,110
At 1 October 2005 435,969
----------
Increase in cash in the year 448,141
Cash outflow from decrease in funds and lease -
financing
Cash inflow from decrease in liquid resources -
----------
Change in net funds resulting from cash flows 448,141
New finance leases -
----------
Movement in net funds in the year 448,141
Net funds at 1 October 2005 435,969
----------
Net funds at 30 September 2006 884,110
----------
5 Dividend
No dividend is proposed.
6 Annual Report
The Company's 2006 Annual Report will be published and sent to shareholders in
due course and copies will be available to the public, free of charge, from the
Registered Office of the Company at Sunrise House, Hulley Road, Macclesfield,
Cheshire, SK10 2LP for at least 30 days from the date of publication.
This information is provided by RNS
The company news service from the London Stock Exchange