Half Yearly Report

RNS Number : 6559S

Tertiary Minerals PLC

21 May 2009

 



Tertiary Minerals plc

Interim results for the six months ended 31 March 2009

Chairman's Statement

I am pleased to report the Company's progress and unaudited interim results for the six month period ended 31 March 2009. 

Review of Activities 

The past six months have seen a deepening of the economic recession and the financial environment for mineral exploration and development companies remains difficult. However, our Company has no debt (other than normal trade and other payables) and no unavoidable exploration or development commitments. The steps we have taken to reduce administrative costs and discretionary expenditure spending are helping to preserve capital and this was supplemented by a small placing of shares in February 2009 which was made to long term supporters of the Company.

Storuman Fluorspar Scoping Study Continuing

At the same time it is important that we continue to advance the Company's interests and so evaluation work is continuing on the Storuman fluorspar project, albeit at a slower pace. Some components of the Scoping Study are complete and metallurgical testwork is progressing satisfactorily. Despite the recession, prices for fluorspar remain firm. Spot prices remain firm and contract prices are largely unaffected and have increased in some cases. This reflects continuing shortages of traditional supplies from China as domestic production is diverted towards production of added-value fluorine-based refrigerants and where demand continues to grow, enhanced by the Government's current fiscal stimulus.

Inmet Continues Exploration at Vähäjoki 

In March this year we signed a full joint venture agreement with Inmet Mining Corporation on the Vähäjoki copper-gold project in northern Finland, expanding the heads of terms contained in the agreement announced on 6 September 2007. Magnetic and electromagnetic geophysical surveys have defined a large target area believed to have high potential for iron-oxide-copper-gold ('IOCG') mineralisation. Inmet recently flew an airborne gravity survey at Vähäjoki and drilling is scheduled to commence this month subject to interpretation of the results of the airborne survey.

The Kolari iron project exploration licence in Finland was recently renewed until the end October 2010 although work on this project, and on other exploration projects in Finland, has been deferred for the time being to reduce outgoings. In Saudi Arabia we continue to await the issue of the revised exploration licence for the Ghurayyah tantalum, niobium zircon rare-earth deposit. 

Results  

The Group is reporting a loss for the six month period of £156,506 (six months to 31 March 2008: £170,709). This loss comprises administration costs of £138,159 (which includes share based payments of £17,933) pre-licence (reconnaissance) costs totalling £23,216, impairments to net assets of £1,296 and interest income of £6,165. The impairments relate to mineral projects no longer held or where no further exploration is justified.

I look forward to reporting further progress in the coming months.

Patrick L Cheetham          

Executive Chairman

21 May 2009

For further information contact:

Tertiary Minerals plc	Tel: + 44 (0)1625 626203
Sunrise House	Fax: + 44 (0)1625 626204
Hulley Road
Macclesfield	Website: www.tertiaryminerals.com
Cheshire  SK10 2LP
Seymour Pierce  Limited	+ 44 (0) 207 107 8000
Nominated Adviser
Jonathan Wright

  Consolidated Income Statement

for the six months to 31 March 2009

	Six months  to 31 March  2009 Unaudited		Six months  to 31 March  2008 Unaudited		Twelve months  to 30 September   2008 Audited
	£		£		£
Pre-licence exploration costs	23,216		36,829		53,292
Impairment of deferred exploration costs	1,296		-		481,842
Administrative expenses	138,159		153,334		289,768
Operating loss	(162,671)		(190,163)		(824,902)
Interest receivable	6,165		19,454		32,937
Loss on ordinary activities before taxation	(156,506)		(170,709)		(791,965)
Tax on loss on ordinary activities	-		-		-
Loss for the period	(156,506)		(170,709)		(791,965)
Loss per share - basic and fully diluted (pence) (note 2)	(0.23)		(0.28)		(1.27)

Consolidated Statement of Total Recognised Income and Expense

for the six months to 31 March 2009

	Six months to  31 March 2009 Unaudited		Six months to  31 March  2008 Unaudited		Twelve months to  30 September 2008   Audited
	£		£		£
Loss for the period	(156,506)		(170,709)		(791,965)
Movement in revaluation of available for sale investment	(115,884)		(249,610)		(317,035)
Foreign exchange translation differences on foreign currency net investments in subsidiaries	112,719		13,217		105,348
Total recognised expense since last accounts	(159,671)		(407,102)		(1,003,652)

Consolidated Balance Sheet

as at 31 March 2009

	As at  31 March 2009 Unaudited		As at  31 March  2008 Unaudited		As at 30 September 2008 Audited
	£		£		£
Non-current assets
Intangible Assets	571,539		805,815		504,823
Property, plant & equipment	3,974		7,023		5,448
Available for sale investment	141,635		299,990		257,519
	717,148		1,112,828		767,790
Current assets
Receivables	46,360		60,696		53,216
Cash and cash equivalents	619,620		864,261		591,968
	665,980		924,957		645,184
Current liabilities
Trade and other payables	(80,344)		(56,432)		(94,280)
Net current assets	585,636		868,525		550,904
Net Assets	1,302,784		1,981,353		1,318,694
Equity
Called up share capital	761,137		636,037		636,037
Share premium account	4,893,515		4,859,689		4,859,689
Merger reserve	131,096		131,096		131,096
Share option reserve	83,552		48,911		65,619
Available for sale revaluation reserve	(141,094)		42,215		(25,210)
Foreign currency reserve	190,183		(14,667)		77,464
Retained losses	(4,615,605)		(3,721,928)		(4,426,001)
Shareholders' funds	1,302,784		1,981,353		1,318,694

Consolidated Cash Flow Statement

for the six months to 31 March 2009

	Six months  to 31 March  2009 Unaudited		Six months  to 31 March  2008 Unaudited		Twelve months  to 30 September  2008 Audited
	£		£		£
Operating Activities
Operating loss	(162,671)		(190,163)		(824,902)
Depreciation charge	1,553		1,743		3,318
Impairment charge	-		18,539		481,842
Share based payment charge	17,933		25,310		42,018
Shares issued in lieu of net wages	8,926		-		-
Decrease/(increase) in receivables	6,855		1,770		9,252
(Decrease)/increase in payables	(13,936)		(21,874)		15,973
Net cash outflow from operating activity	(141,340)		(164,675)		(272,499)
Investing Activities
Interest received	6,165		19,454		32,937
Purchase of intangible assets	(66,716)		(136,184)		(291,320)
Purchase of property, plant & equipment	(79)		(84)		(84)
Purchase of available for sale investments	-		-		(24,954)
Net cash outflow from investing activity	(60,630)		(116,814)		(283,421)
Financing Activity
Issue of share capital (net of expenses)	150,000		690,916		690,916
Net cash inflow from financing activity	150,000		690,916		690,916
Net (decrease)/increase in cash and cash equivalents	(51,970)		409,427		134,996
Cash and cash equivalents at start of period	591,968		441,617		441,617
Exchange differences	79,622		13,217		15,355
Cash and cash equivalents at end of period	619,620		864,261		591,968

Notes to the Interim Statement

1.      Basis of preparation

The interim financial statement has been prepared on the basis of the recognition and measurement requirements of International Financial Reporting Standards (IFRS) as adopted by the European Union (EU), and their interpretations adopted by the International Accounting Standards Board (IASB). The accounting policies used in the preparation of the interim financial information are the same as those used in the Group's audited financial statements for the year ended 30 September 2008.

In common with many exploration companies, the Company raises finance for its exploration and appraisal activities in discrete tranches. Further funding is raised as and when required. When any of the Group's projects move to the development stage, specific financing will be required.

The Directors are satisfied that the Group has adequate resources to continue to operate for the foreseeable future. For this reason they continue to adopt the 'going concern' basis for preparing the financial statements. The interim statement has been approved by the Directors and is unaudited.

2.       Loss per share

 Loss per share has been calculated on the attributable loss for the period and the weighted average number of shares in issue during the period.

	Six months  to 31 March  2009 Unaudited	Six months  to 31 March  2008 Unaudited	Twelve months  to 30 September   2008 Audited
	£	£	£
Loss for the period (£)	(156,506)	(170,709)	(791,965)
Weighted average shares in issue (No.)	66,804,861	62,063,731	62,560,506
Basic loss per share (pence)	(0.23)	(0.28)	(1.27)

The loss attributable to ordinary shareholders and the weighted average number of ordinary shares used for the purpose of calculating diluted earnings per share, are identical to those used to calculate the basic earnings per ordinary share. This is because the exercise of share warrants would have the effect of reducing the loss per ordinary share and is therefore not dilutive under the terms of IAS33.

3.      Share capital  

On 30 January 2009, an issue of 510,080 ordinary shares of 1.0p each was made at 1.75p to the Executive Chairman and one of the non-executive Directors for a consideration of £8,926, in satisfaction of Directors Fees.

On 13 February 2009, an issue of 12,000,000 ordinary shares of 1.0p each was made at 1.25p, by way of placing, for a consideration of £150,000.

4.      Interim report

Copies of this interim report will be sent to all shareholders and are available from Tertiary Minerals plc, Sunrise House, Hulley Road, Macclesfield, Cheshire, SK10 2LP, United Kingdom. It is also available on the Company's website at www.tertiaryminerals.com

---

 

END

 

 

IR PUURGAUPBGGG