Final Results

RNS Number : 9466Z

Thor Mining PLC

30 September 2009

 

THOR MINING PLC

Final Results for the period ended 30 June 2009

Dated: 30 September 2009

Thor Mining PLC ('the Company' or 'Thor'), AIM, ASX: 'THR' the specialist metals company focused on advancing tungsten-molybdenum projects in the Northern Territory of Australia, announces its final results for the period ended 30 June 2009.

Chairman's Statement

The 2009 financial year has been challenging for your company, enduring market conditions which can only be described as difficult. The financial year started with metal prices at or near record highs although the collapse of financial markets was setting the near term tone. Within a few months, metal prices followed debt and equity markets and the resource industry generally was in a very difficult period. In particular for Thor Mining PLC the price of tungsten and molybdenum, the principle products from our Molyhil flagship operation, were seriously eroded with molybdenum falling from US$34/lb in August 2008 to US$8/lb in April 2009 while tungsten suffered similarly although less dramatically. Subsequently the price of both commodities has recovered partially although not to a level which would justify imminent commencement of construction and development at Molyhil.

Despite this gloomy news the fundamentals of the Company's flagship project, Molyhil, remain sound. Your directors believe that the medium term demand for and pricing of tungsten and molybdenum products remain strong, and we are optimistic that they will recover to a level which will allow construction activities to commence in the medium term.

The focus of activities during the year was on reviewing the proposed operating methodology to reduce capital and operating costs. The belief of the Directors is that a mining operation with a relatively short life (less than 10 years) would be more economically operated using contractor supplied equipment and staff wherever practical compared with the approach contained in the 2007 feasibility study. The capital reduction programme and investigation into the reduction of operating costs is ongoing. 

In January 2009 the Company raised approximately UK£220,000 by way of a placing to sophisticated investors and in July 2009 a further UK£450,000 was raised before costs. All junior resource companies are required to replenish cash reserves on a regular basis until production revenues begin to flow, following the development of a project. The Directors believe that further capital raisings will be necessary in the coming financial year.

Thor Mining PLC

Corporate activities

During the year Mr John Young resigned as a Director of the Company. His contribution to the Company was significant and we wish him well in his future endeavours.

In June, 2009 the Company relocated its head office including all secretarial, accounting, payroll and administrative activities from Perth to Adelaide and in doing so closed the Perth office at the end of the lease in August, 2009. This relocation meant a change to the Company Secretary position. Mr. Laurie Ackroyd has been appointed as Chief Financial Officer and Australian Company Secretary. Laurie is an accountant with over 45 years experience in the building services, manufacturing and transportation industries where he held senior financial executive and company secretarial positions. Laurie is also the Chief Financial Officer and Company Secretary of Western Desert Resources Limited which currently holds 24,973,076 ordinary shares in Thor.

Personnel

Mr Ian Sheffield-Parker has been appointed Chief Executive Officer. In early 2009, Mr Sheffield-Parker relocated to Adelaide, South Australia. Mr Sheffield-Parker has a background in both mining engineering and process engineering with over 20 years experience in Australia and southern Africa.

Mr Sheffield-Parker is currently reviewing the proposed Molyhil mine methodology and the feasibility of that project.

The Directors and I gratefully acknowledge the efforts of our very small band of employees, contractors and consultants who have assisted us during the past year and continue to assist in our next phase as we move towards development of mining operations at Molyhil.

Thor Mining PLC

Chairman's Statement

Michael Billing 

Chairman

30 September 2009

Chief Executive Officer Review

Management Overview of Operations

It has been a challenging year for Thor Mining with the 'Global Financial Crisis' taking its toll on commodity prices during the year, specifically Molybdenum and Tungsten, forcing Thor to review its strategy and formulate a plan that would see Thor strengthen its position when demand for its commodities would inevitably return. Thor has continued to build key relationships in the Northern territory where all the tenements are situated.

The year has seen a re-evaluation of the Molyhil feasibility study with the objective of decreasing the capital and operating costs for the project by changing the philosophy of 'owner mining' to 'contract mining' and dramatically reducing the construction time.

Further drilling has been completed at Molyhil to firm up the Resource and to investigate various magnetic anomalies that were present in the northern most area of the ML23825. This has resulted in the release of a revised JORC - Code compliant mineral resource statement and revised mining reserves estimation for the Molyhil Molybdenum - Tungsten Project, again seeing over 70% of the Measured and Indicated Resource being converted into a Proven and Probable Mining Reserve. This has shown an increase to 4.9 million lbs of Molybdenum, and a slight decrease to 620,000 mtu of Tungsten for the initial 3.7 years of the mine. 

The year has also seen a rationalisation of Thor's Uranium Assets, Exploration Leases EL24809, EL24810, EL24823 and EL25378 being halved in size and Exploration Leases EL24827 and A24766 being surrendered. Two further Exploration Leases, EL24735 and EL24765 have been reduced in size and the remainder of the Exploration Leases, EL24734 and EL24736 have not changed in size. Thor has ensured that it has retained the core assets of these leases so we can effectively explore the Uranium assets throughout the coming year.

Review of Operations

MOLYHIL TUNGSTEN - MOLYBDENUM PROJECT (MOLYHIL)

The Molyhil Tungsten - Molybdenum Project occurs as scheelite and molybdenite mineralisation within a magnetite skarn. 

The Molyhil Project is a proposed open cut mine and processing facility which is planned to produce scheelite and molybdenite concentrates for sale with a potential by-product of fine high quality magnetite.

The project comprises an Exploration Licence (EL22349) and three granted Mining Leases (ML23825, ML24429 and ML25721) situated 310km by road north east of Alice Springs in central Australia. 

         Molyhil RC Drilling & revised resource

An RC drilling campaign at Molyhil was conducted in January 2009. 16 holes were drilled for a total of 2,340 metres.

All holes drilled within the proposed pit intersected significant widths of MoS2 and WO3 mineralisation and significant intercepts from the January 2009 drilling programme were made.

The January 2009 Molyhil RC drilling results have been incorporated into the existing database. The results confirmed previously outlined mineralisation both near surface and at depth and has enabled the shapes of the mineralised skarns to be more accurately defined. 

The drilling confirmed the down plunge continuation of the mineralisation within the Southern Skarn, which is open at depth. The underground potential of this additional mineralisation is significant and additional mineralisation could be accessed by decline from the existing open pit design.

Continental Resource Management Pty Ltd (CRM) has re-estimated the resource, details of which are tabulated below.

The revised resource has slight increases in both tonnage and in MoS2 and Fe2O3 grades from those of the previous estimation, but has a slight decrease in WO3 grade.

Summary of Rounded Resource Estimates - 15.25% Fe2O3 Lower Cut

Classification	Resource                       (t)	MoS2 (%)	WO3 (%)	Fe2O3 (%)
Measured	540,000	0.24	0.33	29.4
Indicated	2,300,000	0.18	0.38	27.9
Inferred	900,000	0.2	0.15	27
Total	3,750,000	0.19	0.32	28

Note: Totals may differ from sum of individual items due to rounding.

The magnetite content of a range of samples from the mineralised skarns was determined by Amdel.  CRM estimated that the skarns contain an Inferred Resource of 500,000t of magnetite (3.8Mt @ 13% Fe3O4).

Preliminary marketing and metallurgical testing, as completed by the Australian Coal Institute Research Laboratories (ACIRL), has shown the magnetite to be of premium quality for use in the coal washing markets in Australia. 

The geological information in this report which relates to Exploration Results and Mineral Resources is based upon information compiled by Mr. J.J.G. Doepel, B.Sc (Hons), Grad Dip For Sc, Dip Teach, Principal Geologist of Continental Resource Management Pty Ltd.  Mr. Doepel is a member of the Australasian Institute of Mining and Metallurgy and has sufficient expertise and experience which is relevant to the style of mineralisation and to the type of deposit under consideration to qualify as a Competent Person as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'.  Mr. Doepel consents to the inclusion in the report of the matters based on his information in the form and context in which they appear.

Off-take Agreement

Thor has an off take agreement with CITIC Australia Trading Limited (ASX'CAL'). The CITIC Group is one of China's largest state owned companies. The off take agreement commits CITIC to take 100% of the Molybdenum and Tungsten concentrates to be produced from the Molyhil project.

OORABRA REEFS - BARITE - FLOURITE 

Previous sampling has confirmed significant barite mineralisation with assays up to 9.37% Ba returned. Significant fluorite mineralisation is also evident in the area and historically values range from 5.7% CaF2 to 85% CaF2 (Central Pacific Minerals). In 1972 Central Pacific Minerals identified an inferred resource of 250,000 short tonnes at 37% CaF2. The resource is now 100% owned by Molyhil Mining Pty Ltd as part of the recent acquisition of ML77-86 from QER Pty Ltd. The ten ML's are surrounded by the Molyhil EL22349.

The proximity to the proposed infrastructure at Molyhil will allow the Oorabra Reefs mineralisation to be explored thoroughly and developed in the future.

HATCHES CREEK PROJECT

The Hatches Creek Project is comprised of two contiguous Exploration Licences, EL22912 and EL23463 which are located in the central portion of the Northern Territory.

Previous sampling from old workings and abandoned stockpiles associated with historic mining covering the 'Hatches Creek Wolfram Field' have returned significant tungsten and copper assays. Mining in the area occurred between 1913 and 1957 over multiple parallel quartz reefs within 16 distinct mineralised areas.

HALE RIVER PROJECT

The Hale River Project is comprised of one Exploration Licence, EL24809 which is located in the central portion of the Northern Territory.

Review of previous exploration activity during the year on the Hale River project led to a reduction in size (halving) of the tenement to reduce costs whilst retaining the core prospects.

PLENTY HIGHWAY PROJECT

The Plenty Highway Project is comprised of one Exploration Licence, EL24810 which is located in the central portion of the Northern Territory.

Review of previous exploration activity during the year on the Hale River project led to a reduction in size (halving) of the tenement to reduce costs whilst retaining the core prospects.

HARTS RANGE PROJECT

The Harts Range Project is comprised of four separate Exploration Licences, EL24734, EL24735, EL24736 and EL24765, which are located in the central portion of the Northern Territory, south of the Plenty Highway.

The Harts Range group of Exploration Licences was consolidated during the year and involved a reduction in size of EL 24735 and EL 24765 together with a surrender of the small non prospective tenements A 24766 and EL 24827.

The significant uranium and Rare Earth Elements mineralisation in pegmatite at the Daicos prospect is worthy of further exploration in light of long term market trends, in particular the demand for Rare Earth Elements.

BUNDEY RIVER EL25378

The Bundy River Project is comprised of one Exploration Licence, EL25378.

The Bundey River tenement was reduced in size during the year retaining the prospective eastern side of the project. Previous airborne EM and reconnaissance air core drilling has identified coal and lignite units within the palaeochannel which are considered to be highly prospective 'reducing traps' for uranium mineralisation. The full extent of the carbonaceous units is yet to be determined.

Ian Sheffield-Parker

Chief Executive officer

THOR MINING PLC

Income Statements for the year ended 30 June 2009 

		Consolidated		Company
	Note	2009	2008	2009	2008
		£'000	£'000	£'000	£'000
Administrative expenses		(449)	(553)	(313)	(237)
Corporate expenses		(532)	(572)	(443)	(480)
Other expenses		(305)	(93)	(1)	-
Operating loss	3	(1,286)	(1,218)	(757)	(717)
Interest received	4	27	104	5	32
Other income	4	29	37	13	-
Loss before tax		(1,230)	(1,077)	(739)	(685)
Tax on loss on ordinary activities	6	-	-	-	-
Loss for the financial year		(1,230)	(1,077)	(739)	(685)
Loss per share - basic	7	(0.77)p	(0.76)p
Loss per share - diluted	7	(0.77)p	(0.76)p
Continuing operations
All items relate to continuing operations

Balance Sheet

At 30 June 2009 

	Note	Consolidated	Consolidated	Company	Company
		2009	2008	2009	2008
		£'000	£'000	£'000	£'000
ASSETS
Non-current assets
Intangible assets	8	5,453	5,419	-	-
Investments in subsidiaries	9	-	-	1,977	1,977
Loan to subsidiaries	10	-	-	4,660	4,581
Exploration costs	11	1,299	1,171	-	-
Plant and equipment	12	77	113	-	2
Total non-current assets		6,829	6,703	6,637	6,560
Current assets
Cash and cash equivalents	22	198	1,321	144	747
Trade & other receivables	13	26	29	-	3
Prepayments		5	14	-	12
Total current assets		229	1,364	144	762
Total assets		7,058	8,067	6,781	7322
LIABILITIES Current liabilities Trade and other payables	14	(96)	(117)	(14)	(46)
Provisions	15	(8)	(5)	-	-
Interest bearing liabilities	16	(16)	(20)	-	-
Total current liabilities		(120)	(142)	(14)	(46)
Non-current liabilities
Interest bearing liabilities	16	(51)	(79)	-	-
Total non-current liabilities		(51)	(79)	-	-
Total liabilities		(171)	(221)	(14)	(46)
Net assets		6,887	7,846	6,767	7,276
Equity
Issued share capital	17	514	448	514	448
Share premium		6,860	6,706	6,860	6,706
Foreign exchange reserve		1,484	1,443	-	-
Merger reserve		1,634	1,634	1,634	1,634
Option revaluation reserve	18	10	862	10	862
Retained losses		(3,615)	(3,247)	(2,251)	(2,374)
Total equity		6,887	7,846	6,767	7,276

These Financial Statements were approved by the Board of Directors on 29 September 2009 and were signed on its behalf by:

Michael Billing                                                      Laurie Ackroyd 

Executive Chairman                                               Chief Financial Officer 

Cash Flow Statement for the year ended 30 June 2009 

	Consolidated	Consolidated	Company	Company
	2009	2008	2009	2008
Cash flows from operating activities
Operating Loss	(1,286)	(1,218)	(757)	(717)
Decrease/(increase) in trade and other receivables	12	63	15	2
Increase/(decrease) in trade and other payables	(22)	59	(32)	3
Depreciation	28	39	1	-
Exploration expenditure written off	254
Share options expensed	10	79	10	79
Unrealised exchange gain	(3)	302	-	-
Sundry income	29	37	13	-
Profit on sale of fixed assets	(2)	-	-	-
Net cash outflow from operating activities	(980)	(639)	(750)	(633)
Cash flows from investing activities
Interest received	27	104	5	32
Interest paid
Proceeds from sale of fixed assets	16
Purchase of property, plant and equipment	(6)	(64)		(1)
Payments for mine development expenditure	(114)	(702)	-	-
Payments for exploration expenditure	(254)	(342)	-	-
Loan to controlled entities	-	-	(79)	55
Net cash outflow from investing activities	(331)	(1,004)	(74)	86
Cash flows from financing activities
Repayment of borrowings	(32)	(11)	-	-
Net issue of ordinary share capital	220	1,139	220	1,139
Net cash inflow from financing activities	188	1,128	220	1,139
Net decrease/(increase) in cash and cash equivalents	(1,123)	(515)	(604)	592
Cash and cash equivalents at beginning of period	1,321	1,836	747	155
Cash and cash equivalents at end of period	198	1,321	143	747

   Statement of Changes in Equity

   For the year ended 30 June 2009

	Issued Share Capital	Share Premium	Retained Earnings	Foreign Currency Translation Reserves	Merger Reserve	Option Reserve	Total
	£'000	£'000	£'000	£'000	£'000	£'000	£'000
Consolidated
At 1 July 2007	399	5,616	(2,170)	431	1,634	783	6,693
Loss for the period	-	-	(1,077)	-	-	-	(1,077)
Foreign currency translation reserve	-	-	-	1,012	-	-	1,012
Total recognised income and expense	-	-	(1,077)	1,012	-	-	(65)
Share based payments expense	-	-	-	-	-	79	79
Share issues	49	1,090	-	-	-	-	1,139
At 30 June 2008	448	6,706	(3,247)	1,443	1,634	862	7,846
At 1 July 2008	448	6,706	(3,247)	1,443	1,634	862	7,846
Loss for the period	-	-	(1,230)	-	-	-	(1,230)
Foreign currency translation reserve	-	-	-	41	-	-	41
Total recognised income and expense	-	-	(1,230)	41	-	-	(1,189)
Share based payments expense/options expired	-	-	862	-	-	(852)	10
Share issues	66	154	-	-	-	-	220
At 30 June 2009	514	6,860	(3,615)	1,484	1,634	10	6,887

Company
At 1 July 2007	399	5,616	(1,689)	-	1,634	783	6,743
Loss for the period	-		(685)	-		-	(685)
Total recognised income and expense	-	-	(685)	-	-	-	(685)
Share based payments expense	-	-	-	-	-	79	79
Share issues	49	1,090	-	-	-	-	1,139
At 30 June 2008	448	6,706	(2,374)	-	1,634	862	7,276
At 1 July 2008	448	6,706	(2,374)	-	1,634	862	7,276
Loss for the period	-	-	(739)	-	-	-	(739)
Total recognised income and expense	-	-	(739)	-	-	-	(739)
Share based payments expense	-	-	862	-	-	(852)	10
Share issues	66	154	-	-	-	-	220
At 30 June 2009	514	6,860	(2,251)	-	1,634	10	6,767

Notes to the Financial Statements for the period year to 30 June 2009

1. The Directors are not recommending the payment of an ordinary share dividend.
   
   
2. Loss per share on the net basis is calculated on a loss on ordinary activities after taxation of £1,230,000 (2007:£1,077,000) and on 159,236,518 (2008: 141,295,494) ordinary shares being the weighted average number of shares in issue and ranking for dividend during the period. No diluted loss per share is presented as the effect of exercise of outstanding options is to decrease the loss per share.
   
   
3. The financial information set out in the final results announcement
   have been prepared in accordance with the requirements of the Companies Act 2006 and Article 4 of the IAS Regulation.
   Results for the period ended 30 June 2009 are abridged from the 2009 Annual Report and Accounts, which received an unqualified auditor's report and will be filed with the Registrar of Companies following the Annual General Meeting on 25 November 2009.

   4. The Annual Report is expected to be posted to shareholders on or 
       about 28 October 2008. Pursuant to the AIM Rules the Annual Report 
       and Accounts will be available on the Company's web site, 
           www.thormining.com, from 30 September 2009. Further copies will be 
       available from the Company's registered office: 3rd Floor, 55 Gower 
       Street, London WC1E 6HQ.

    5.  The Annual General Meeting of the Company will be held at 36 Old
       Jewry, London, EC2R 8DD England, on Wednesday 25 November 2009 
       at 10.00 a.m.

Enquiries:

Mick Billing	[phone]	Thor Mining PLC	Chairman
Laurie Ackroyd	[phone]	Thor Mining PLC	CFO/Company Secretary
John Simpson	020 7776 6550	Daniel Stewart & Co plc	Nominated Adviser

Updates on the Company's activities are regularly posted on Thor's website www.thormining.com, which includes a facility to register to receive these updates by email.

 

END

 

 

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