Half Yearly Report

RNS Number : 1545Y

Vane Minerals PLC

28 August 2009

 



28 August 2009   

VANE Minerals Plc (AIM:VML)

('VANE' or the 'Company')

Interim Report for the Six Months to 30 June 2009 

VANE Minerals Plc (AIM:VML), today announces its interim report for the six months to 30 June 2009. 

Highlights for Period

• 50:50 VANE-Uranium One JV, Northern Arizona

  • High grade uranium oxide ('U3O8') results from re-entering old holes at Wate Pipe. This project is outside the demarked 'Time-out' areas announced by the Secretary of the Interior in July 2009

  • Additional targets acquired within VANE-U1 joint venture area

    • Secured through Neutron Energy Inc. (NEI) Agreement

    • Property package included two confirmed pipes and 63 pipe targets. Due diligence underway

  • Number of VANE-U1 joint venture targets now in excess of 120

  • Environmental Impact Study (EIS) within the Kaibab National Forest is due for completion in 2010

• Utah uranium properties evaluation/exploration continues 

• Diablito silver/gold mine, Mexico

  • Cash flow positive from Diablito for period

  • Gold equivalent production of 2,200 ounces in the period, a cost per ounce of US$640

  • San Dieguito de Arriba mill (SDA) operated smoothly at 91% availability

  • Mine averaged 1,919 tonnes/month, mill averaged 2,748 tonnes/month

  • Mill head grades on target at 280.6g Ag/tonne and 2.63g Au/tonne

Highlights post period and outlook

• Sir Richard Needham appointed as Non-Executive Chairman

• Arbuthnot Securities Ltd appointed as NOMAD and Broker

• Second round of drilling to wash out old holes commenced and new drilling targeted at Wate pipe

• SDA mill targeted to reach 2,700 tonnes per month capacity at increased grades

Steve Van Nort, Chief Executive Officer, commented: 'We have made good progress with our high-grade breccia pipe drilling programme in Arizona during this period. Although part of the area is now under review following the announcement from the Secretary of Interior in July, in the light of legal advice we remain confident that our existing licences are valid. Elsewhere, our Utah exploration programmes on the uranium properties continue. The Diablito silver-gold mine in Mexico continues to provide support to the company and is cash-flow positive for the period'.  

For further information, please contact:

VANE Minerals Plc	[phone]
Matthew Idiens
Arbuthnot Securities	[phone]
John Prior
Threadneedle Communications	[phone]
Laurence Read/ Beth Harris	[phone]

CHAIRMAN'S INTERIM STATEMENT

I am delighted to present my first interim statement as your chairman.

I believe that my experience as a senior international advisor to AMEC plc for the last ten years, together with my time as Trade minister promoting Britain's mining and energy industries around the world, give me an insight into the commercial and political problems facing the Company.

As your CEO points out the climate for small mineral exploration companies has been far from easy over the last six months.

The industry has also been confronted by the seemingly split minded approach of the new US administration which very early on in its tenure has found itself on the horns of a dilemma.

On the one hand the new President is promoting a much lower reliance by the US on foreign energy resources but on the other hand his Secretary of the Interior is calling a two year 'time out' on locating new claims in one of the most prolific uranium bearing areas of the United States, which will be crucial for the development of Nuclear Power.

No government will find it easy to reconcile the demands of conservation with ever growing commercial and consumer pressures for more energy. I shall do all I can to ensure that VANE Minerals' interests are well represented in the debates ahead.

We believe that our assets and licenses are well grounded and well protected and at the appropriate time we will gain material financial returns from them.

We have recently commenced our second drilling programme on the Wate Pipe, mainly consisting of washing out existing holes and hope to be in a position to report the Company's maiden NI43-101 compliant resource to the market by the end of the year.

Elsewhere, we are proceeding with a range of initiatives which because of our cash position and strong track record we believe have exciting prospects. Not only are we examining many potential additional uranium projects but also actively seeking to expand the copper division, utilizing the vast experience the team has in porphyry copper exploration.

Finally, any company is as good as its management team and its staff. VANE is, as I mention above, extremely fortunate in having some of the most highly respected and experienced exploration geologists in the business not only in copper but also uranium along with a strong team supporting them. I am confident they will over time bring to the company an increasing level of success and return.

Sir Richard Needham

27 August 2009

  CHIEF EXECUTIVE OFFICER'S OPERATIONS STATEMENT

The first half of 2009 has been a difficult time for many natural resource companies including VANE. However, with the completion of a fund raising in November 2007 and by bearing down on costs, your company is well positioned to take advantage of opportunities currently becoming available within the industry as financial market conditions remain difficult.

On the 20 July 2009 we announced the appointment of Sir Richard Needham as non-executive Chairman of the Board. Sir Richard brings to VANE significant public company Board and political experience at both local and international level.

We have also appointed Arbuthnot Securities Limited as NOMAD and broker and look forward to working closely with them in developing the company.

U.S. URANIUM EXPLORATION 

Uranium exploration by VANE's wholly owned subsidiary VANE Minerals (US) LLC continued in southwestern US, more specifically in Arizona and Utah, under the capable leadership of Kris Hefton. The uranium price in January stood at $49.00 per pound U3O8 and ended the first half of 2009 at $54.00 down from the high of about $135 per pound in early 2008 but well above the $19.00 per pound price in late 2004, when VANE commenced building its uranium portfolio.

Our 50:50 joint venture with Uranium One Exploration U.S.A. Inc. (U1) in the high-grade (+/- 1% U3O8) breccia pipe district in northern Arizona operated smoothly. Previously drilled holes at the Wate Pipe were re-entered and logged. Those results were reported in a press release dated 2nd February 2009. Hole WT-5 intersected 30.5 feet that averaged 1.87% eU3O8. The Wate Pipe was previously explored with considerable success by Rocky Mountain Energy in conjunction with their joint venture partner, Taiwan Power Corporation. Although we are still in dialogue with Taiwan Power to obtain the drilling data, it has proved to be a time- consuming process and therefore we have decided to advance the project through washing out and probing the existing holes and new drilling as necessary to confirm previous results. With all the necessary permits in place, this work is now underway and when completed will allow us to issue a NI 43-101 compliant resource estimate. We will report results from Wate as they become available.

The acquisition of additional targets within the area of the VANE-U1 joint venture was made possible, subject to due diligence, by the signing of an Agreement with Neutron Energy Inc. (NEI) as reported in the press release dated 25 June 2009. The property package included two confirmed pipes and 63 pipe targets. This would bring the number of targets within the VANE-U1 joint venture to more than 120 if the entire NEI land package is acquired.

Evaluation of VANE's wholly owned Utah properties, Happy Jack, North Wash, Abajo and North Alice Extension, continued with the 2008 drill results at Happy Jack reported on in the press release dated 2 February 2009. Uranium prices in the $50.00 per pound range render these stratabound deposits marginal; however, costs to hold these properties have been re-negotiated enabling us to hold these properties in anticipation of price increases reflecting increased demand for clean affordable energy. 

Two political issues have arisen regarding the exploration and mining of uranium in northern Arizona. One is the proposal of The Grand Canyon Watersheds Protection Act of 2009 (HR644), which would withdraw forever from mineral entry 1,000,000 acres of federal lands administered by the U.S. Forest Service and the Bureau of Land Management. The second issue involves Secretary of Interior Ken Salazar's segregation order of 21 July 2009 covering the same 1,000,000 acres for two years, which although announced as closing the area to 'new claims', it transpires that it essentially is closing the area to exploration and mining unless the federal lode claims meet a 'valid existing rights' (VER) test. The exact requirements of the VER test are still being formulated. We are in close touch with the authorities and once we have a clear understanding of the rules and regulations and their potential effect on VANE operations, we will issue a press release. 

The two year 'time out' is to be used to study the effects of uranium exploration and mining on the surrounding area, including the Grand Canyon National Park and the Colorado River. Mr. Salazar's order appears to ignore the fact that uranium exploration and mining was far more active than at present in the same area during the 1970-1990s with no measureable effect on the surrounding area, including the Grand Canyon National Park or the Colorado River. There was however, the creation of many mining related jobs and the production of uranium from which clean, safe nuclear energy was produced. 

For the moment, VANE will continue to pursue the completion of the Environmental Impact Statement initiated nearly one year ago and covering 25 targets within the Kaibab National Forest with the expectation that drilling will commence in 2010.

The United States, at present, is heavily reliant on foreign energy fuel sources, such as oil and gas, and is also leading the way on environmental and CO2 emissions agendas; these twin 'issues' can realistically only be reduced by significant increases in nuclear generated power to feed the growing demand for electricity in the US. According to a report published by the U.S. Geological Survey, 42% of the undiscovered uranium endowment in the USA lies within the northern Arizona region. It would seem inconceivable that such an important resource to the nation could be denied to the American economy.

Your company is continually reviewing this situation and is fully engaged in the political and legal process. VANE has had a clearly established presence in the region and over the past five years our exploration work has identified a series of highly prospective targets and potential mines. We have operated in full compliance with US regulations and expect to be afforded the full protection of the established mining code.  

DIABLITO MINING AND MILLING (Ag/Au) OPERATIONS, NAYARIT, MEXICO

VANE Minerals plc's wholly owned subsidiary, Minerales VANE SA de CV (MV), operated well during the first half of 2009, due to the efforts of the MV team headed by Dr. Luis Perez, Director of Mexican Operations, and including Ing. Manuel Rizzoli, who manages mining and milling operations, and Ing. Luis Alberto, Superintendent of the Diablito Mine.

Production at the Diablito Mine at Las Lumbres averaged 1,919 tonnes per month, slightly below our target of 2,150 tonnes per month. Silver and gold grades were on target at 322g/T and 2.7g/T respectively. A periodic review of mine and mill safety and operating procedures by Dan White of PRE, Physical Resource Engineering, Inc. of Tucson was completed - no major incidents were recorded. All recommendations are being initiated to ensure maximum safety and efficiency.

The San Dieguito de Arriba mill (SDA) located 30km north of the Diablito mine and 5 km east of Acaponeta operated smoothly at 91% availability. Tonnes milled during the first half of 2009 amounted to 16,485 tonnes for an average of 2,748 tonnes per month or at 102% of target. The average grade of material processed was 297g/T silver and 2.5g/T gold. Mined tonnes, 1,919 tonnes per month, were supplemented by 829 tonnes per month of lower grade material stockpiled at the mine during the first three years of the mine operation. Approximately 12,000 tonnes of this lower grade material, which contains 200g/T silver and 1.5g/T gold, remained at the end of June 2009. Silver and gold recoveries in the mill were 88% and 84% respectively. 

Sale of our concentrates was split between Penoles in Torreon and Grupo Mexico in San Luis Potosi. Our first shipment of 2009 went to Penoles before a strike at the smelter halted operations. During the strike Luis Perez negotiated very favourable terms with Grupo and the remaining concentrates were shipped to Grupo Mexico in SLP. We shipped 245 tonnes of concentrates during the first half of 2009 representing a concentration ratio of 67:1, ore:concentrates.  Average metal prices for the six month period were $12.88 and $912.42 per ounce for silver and gold respectively.

Plans for the remainder of 2009 are to operate the mill at full capacity, 2,700 tonnes per month, and to increase the grade of the mill feed either by increasing the grade of the material mined at Diablito or through acquisition of ore from near-by mine(s) having higher grade ore than our lower grade stockpiled material at Diablito. The stockpiled ore at Diablito is carried at zero cost since the mining costs of this material were written off against higher grade material mined at the same time, which has already been processed. Several acquisition opportunities are under investigation and will be reported as agreements are finalized.

SOUTHWESTERN USA COPPER EXPLORATION

VANE's copper exploration group continues to seek opportunities to acquire porphyry copper targets in the southwestern U.S. One property currently controlled by VANE is the Yuma King Property. The agreement covering the Yuma King prospect in west central Arizona was announced on 30 January 2009. The property consists of 320 federal lode claims and encompasses approximately 6,400 acres in La Paz County, Arizona. Ongoing investigation/evaluation indicates a deep porphyry copper target. Historical data from several drill holes intersected highly anomalous copper and molybdenum at the bottom of the holes. We are also evaluating a near surface copper oxide occurrence within the same claim block.

Several other targets are being investigated in the southwestern US copper province. It is expected that additional property acquisition(s) will be made during the second half of 2009.

PARAGUAY EXPLORATION

We originally became interested in the La Paloma area as a result of free gold found in panned stream sediments. Our efforts to locate the source of the placer gold were hampered by the very low topographic relief and extensive vegetation cover, both cultivated and natural. Our understanding of the geology and geologic history of the prospect area was initially based on sparse scattered rock outcroppings and a few shallow hand-dug pits. With completion of a diamond drilling program in February 2009 and more recently an interpretation of ground and airborne magnetic surveys, our understanding of La Paloma geology has come more clearly into focus and enabled us to concentrate on two areas that represent the probable source(s) of the stream borne gold.

We now understand that the area is one in which a thin soil horizon (1-2 meters) has developed over a deeply weathered (lateritic) basaltic bedrock. Gold tends to migrate in both the soil and the lateritic environments but in response to different forces. In the soil, the movement is down-slope under the influence of gravity as the gold works its way toward the slow-moving streams in which it was first detected. In the laterite, which is nothing more than deeply weathered rock, movement of gold is controlled more by chemistry and movement of ground water.

In order to follow the 'gold trails', extensive sampling of the deeper laterite is required. The VANE team in Paraguay responded to the challenge by developing a system of deep hand augering that allows them to penetrate the soil horizon and obtain a core-like sample of the underlying laterite to depths of up to 14 meters without resorting to expensive diamond drilling. Tests of this type are presently underway probing fault structures in the laterite whose location has been determined by magnetic geophysical surveys.

While we are encouraged by the determination and innovative spirit of the Paraguayan staff, we realize that success at La Paloma will require commitment to a long term effort. To that end, we are in the process of actively seeking a joint venture partner with whom to carry the work forward. We have assembled an executive summary and distributed it to a number of potentially suitable partners. Several groups have expressed interest and are reviewing the material.

Cash Position

With our current cash reserves and continuing production from the Diablito mine, the group has sufficient cash to carry out its proposed exploration programme over the next twelve months without recourse to any further borrowing.

Steven D Van Nort

27 August 2009

Condensed consolidated income statement

For the six months ended 30 June 2009

		Unaudited 6 months ended  30 June		Audited year ended 31 December
	Notes	2009	2008	2008
		£	£	£
Continuing operations
Revenue	4	1,083,404	1,060,067	1,710,807
Cost of sales		(821,435)	(1,132,999)	(2,317,210)
Gross profit/(loss)		261,969	(72,932)	(606,403)
Operating and administrative expenses		(856,103)	(669,470)	(1,271,209)
Impairment of exploration costs		-	(56,924)	(534,636)
Operating loss	4	(594,134)	(799,326)	(2,412,248)
Investment income		17,752	140,474	244,787
Finance costs		(73,810)	(70,363)	(142,157)
Loss before taxation		(650,192)	(729,215)	(2,309,618)
Taxation		55,400	57,412	582,797
Loss for the period attributable to equity holders of the parent company		(594,792)	(671,803)	(1,726,821)
Loss per share
Basic & diluted	3	(0.31p)	(0.35p)	(0.91p)

Condensed consolidated statement of other comprehensive income

For the six months ended 30 June 2009

		Unaudited 6 months ended  30 June		Audited year ended 31 December
	Notes	2009	2008	2008
		£	£	£
Loss for the period attributable to equity holders of the parent company		(594,792)	(671,803)	(1,726,821)
Currency translation differences		(499,844)	110,700	879,874
Other comprehensive income before tax		(1,094,636)	(561,103)	(846,947)
Income tax relating to items credited/charged to equity		263,641	-	(409,907)
Total comprehensive income for the year attributable to equity owners of the parent company		(830,995)	(561,103)	(1,256,854)

Condensed consolidated statement of financial position

as at 30 June 2009

	Unaudited 30 June		Audited 31 December
	2009	2008	2008
	£	£	£
Non-current assets
Investments	213,571	213,571	213,571
Intangible assets	2,728,377	1,724,264	2,803,654
Property, plant and equipment	2,865,597	3,501,174	3,216,525
Deferred tax asset	121,947	-	-
	5,929,492	5,439,009	6,233,750
Current assets
Inventories	167,011	233,310	20,157
Trade and other receivables	353,642	534,711	497,105
Cash and cash equivalents	2,599,776	4,532,474	3,308,016
	3,120,429	5,300,495	3,825,278
Total assets	9,049,921	10,739,504	10,059,028
Current liabilities
Trade and other payables	(329,034)	(238,761)	(361,833)
Current taxation	(9,399)	(10,082)	(12,518)
	(338,433)	(248,843)	(374,351)
Net current assets	2,781,996	5,051,652	3,450,927
Non-current liabilities
Convertible loan notes	(1,417,992)	(1,396,099)	(1,406,976)
Deferred tax liabilities	-	(313,272)	(174,993)
Obligations under finance leases	-	(4,315)	(2,270)
Provisions	(37,500)	(37,500)	(37,500)
	(1,455,492)	(1,751,186)	(1,621,739)
Total liabilities	(1,793,925)	(2,000,029)	(1,996,090)
Net assets	7,255,996	8,739,475	8,062,938
Equity
Share capital	19,010,811	19,010,811	19,010,811
Share premium account	2,359,071	2,359,071	2,359,071
Share option reserve	255,263	211,996	231,210
Other reserves	261,220	261,220	261,220
Retained losses	(14,601,447)	(12,951,637)	(14,006,655)
Cumulative translation reserve	(28,922)	(151,986)	207,281
Equity shareholders' funds attributable to equity holders of the parent company	7,255,996	8,739,475	8,062,938

  Condensed consolidated statement of changes in equity (Unaudited)

	Share capital	Share premium	Share option reserve	Other reserves	Cumulative translation reserves	Accumulated deficit	Total
	£	£	£	£	£	£	£
As at 1 January 2008	19,010,811	2,359,071	195,203	261,220	(262,686)	(12,279,834)	9,283,785
Loss for the period	-	-	-	-	-	(671,803)	(671,803)
Exchange translation differences on foreign operations	-	-	-	-	110,700	-	110,700
Total recognised income and expense	-	-	-	-	110,700	(671,803)	(561,103)
Share based payment	-	-	16,793	-	-	-	16,793
As at 30 June 2008	19,010,811	2,359,071	211,996	261,220	(151,986)	(12,951,637)	8,739,475

Condensed consolidated statement of changes in equity (Audited)

	Share capital	Share premium	Share option reserve	Other reserves	Cumulative translation reserves	Accumulated deficit	Total
	£	£	£	£	£	£	£
As at 1 January 2008	19,010,811	2,359,071	195,203	261,220	(262,686)	(12,279,834)	9,283,785
Exchange translation differences on foreign operations	-	-	-	-	879,874	-	879,874
Deferred tax effect of exchange differences arising on translation of foreign operations	-	-	-		(409,907)	-	(409,907)
Loss for the year	-	-	-	-	-	(1,726,821)	(1,726,821)
Total recognised income and expense for the year	-	-	-	-	469,967	(1,726,821)	(1,256,854)
Share based payment	-	-	36,007	-	-	-	36,007
As at 31 December 2008	19,010,811	2,359,071	231,210	261,220	207,281	(14,006,655)	8,062,938

Condensed consolidated statement of changes in equity (Unaudited)

	Share capital	Share premium	Share option reserve	Other reserves	Cumulative translation reserves	Accumulated deficit	Total
	£	£	£	£	£	£	£
As at 1 January 2009	19,010,811	2,359,071	231,210	261,220	207,281	(14,006,655)	8,062,938
Loss for the period	-	-	-	-	-	(594,792)	(594,792)
Exchange translation differences on foreign operations	-	-	-	-	(499,844)	-	(499,844)
Deferred tax effect of exchange differences arising on translation of foreign operations	-	-	-	-	263,641	-	263,641
Total recognised income and expense	-	-	-	-	(28,922)	(594,792)	(830,995)
Share based payment	-	-	24,053	-	-	-	24,053
As at 30 June 2009	19,010,811	2,359,071	255,263	261,220	(28,922)	(14,601,447)	7,255,996

Condensed consolidated statement of cash flows

For the six months ended 30 June 2009

		Unaudited 6 months ended 30 June		Audited Year ended 31 December
		2009	2008	2008
		£	£	£
Net cash outflow from operating activities	a	(367,079)	(454,688)	(648,653)
Net cash outflow from investing activities	b	(277,500)	(826,039)	(1,991,859)
Net cash outflow from financing activities	c	(5,148)	(3,094)	(3,496)
Net decrease in cash and cash equivalents		(649,727)	(1,283,821)	(2,644,008)
Cash and cash equivalents at beginning of period		3,308,016	5,813,353	5,813,353
Effect of foreign exchange rate changes on cash and cash equivalents		(58,513)	2,942	138,671
Cash and cash equivalents at end of period		2,599,776	4,532,474	3,308,016

  Appendices to the condensed consolidated statement of cash flows

For the six months ended 30 June 2009

		Unaudited 6 months ended 30 June		Audited Year ended 31 December
		2009	2008	2008
		£	£	£
a	Cash flow from operating activities
	Loss before taxation	(650,192)	(729,215)	(2,309,618)
	Income from investments	(17,752)	(140,474)	(244,787)
	Finance costs	73,810	70,363	142,157
	Depreciation and amortisation	298,813	292,200	591,698
	Impairment of intangible fixed assets	-	56,924	534,636
	Share based payments	24,053	16,793	36,007
	Effect of foreign exchange rate changes	11,925	49,752	370,641
	Operating cash outflow before movements in working capital	(259,343)	(383,657)	(879,266)
	(Increase)/decrease in inventories	(146,854)	311,706	524,859
	Decrease/(increase) in trade and other receivables	143,463	(285,448)	(247,842)
	(Decrease)/increase in trade and other payables	(30,170)	(30,430)	90,247
	Cash used in operations	(292,904)	(387,829)	(512,002)
	Taxes paid	(11,660)	(6,806)	(16,432)
	Interest paid	(62,515)	(60,053)	(120,219)
	Net cash outflow from operating activities	(367,079)	(454,688)	(648,653)
b	Cash flow from investing activities
	Interest received	17,752	140,474	244,787
	Purchase of property, plant and equipment	(24,146)	(106,245)	(120,559)
	Purchase of intangible assets	(271,106)	(860,268)	(2,116,087)
	Net cash outflow from investing activities	(277,500)	(826,039)	(1,991,859)
c	Cash flows from financing activities
	Repayment of obligations under finance leases	(5,148)	(3,094)	(3,496)
	Net cash (outflow) from financing activities	(5,148)	(3,094)	(3,496)

  Notes to the condensed consolidated interim financial statements

1. Accounting Policies 

Basis of preparation

This Report was approved by the directors on 27 August 2009 

The financial statements have been prepared in accordance with the recognition and measurement principles of International Accounting and Financial Reporting Standards ('IFRS') as adopted in the EU.

The company is domiciled in the United Kingdom. The company is listed on the Alternative Investment Market stock exchange.

The current and comparative periods to June have been prepared using the accounting policies and practices consistent with those adopted in the annual financial statements for the year ended 31 December 2008 and are also consistent with those which will be adopted in the 31 December 2009 financial statements. Comparative figures for the year ended 31 December 2008 have been extracted from the statutory financial statements for that period which carried an unqualified audit report, did not contain a statement under section 237(2) or (3) of the Companies Act 1985 and have been delivered to the Registrar of Companies.

The Financial Information contained in this report does not constitute statutory accounts as defined by section 434 of the Companies Act 2006.  This report has not been audited or reviewed by the Group's auditors.

During the first six months of the current financial year there have been no related party transactions that materially affect the financial position or performance of the group and there have been no changes in the related party transactions described in the last annual financial report.

The principal risks and uncertainties of the group have not changed since the publication of the last annual financial report where a detailed explanation of such risks and uncertainties can be found.

The Group has applied IAS 1 Revised 'Presentation of Financial Statements' and IFRS 8 'Operating Segments' as of 1 January 2009.  In accordance with IAS 1 the financial statements have been re-titled and a consolidated statement of other comprehensive income produced. IFRS 8 states that segment information should be based on management's internal reporting structure and accounting principles.  

As disclosed in the financial statements for the year ended 31 December 2008, Vane Minerals plc's segment information has already been based on the management reporting structure and therefore the operating segments are the same as previously reported - UK, USA, Paraguay and Mexico. Although full disclosure has not been made in accordance with IFRS 8 in these Interim Financial Statements, the Group will fully comply with this standard in the 31 December 2009 financial statements.

2. Dividends

The directors do not recommend the payment of a dividend for the period.

3. Loss per ordinary share

The calculation of basic and diluted loss per ordinary share is based on the loss after taxation and on the following weighted average number of shares in issue.

	Shares in Issue
	Unaudited		Audited
	30 June 2009	30 June 2008	31 December 2008
Weighted average number of shares	190,108,108	190,108,108	190,108,108

As a result of the loss incurred in the periods ended 30 June 2009, 30 June 2008 and 31 December 2008 there is no dilutive effect from the subsisting share options.

4. Segmental analysis 

The Group's primary segmental reporting is based on geographic segments as follows:

	Unaudited		Audited
Geographical Location	6 months to 30 June 2009 £	6 months to 30 June 2008 £	12 Months to 31 December 2008 £
Revenue
UK	-	-	-
USA	-	-	-
Mexico	1,083,404	1,060,067	1,710,807
Paraguay	-	-	-
	1,083,404	1,060,067	1,710,807
Segment results
UK	(431,458)	(254,504)	(389,054)
USA	(345,184)	(281,601)	(801,960)
Mexico	126,450	(193,110)	(1,118,604)
Paraguay	-	-	-
	(650,192)	(729,215)	(2,309,618)
Current and deferred tax	55,400	57,412	582,797
	(594,792)	(671,803)	(1,726,821)
Net Assets
UK	1,049,080	3,150,570	1,971,655
USA	2,160,336	1,349,526	2,249,661
Mexico	3,405,534	4,028,117	3,282,382
Paraguay	641,046	211,262	559,240
	7,255,996	8,739,475	8,062,938

Activities in Mexico are currently concerned with gold and silver mining and exploration. Activities in the USA are split between other sources for further gold and silver properties, and research and evaluation of potential uranium properties. Activities in Paraguay are concerned with gold and copper exploration. Activities in the United Kingdom are concerned with administration and management of the Group.

5. Capital and reserves

Share option reserve

The share option reserve includes an expense based on the fair value of share options issued since 7 November 2002 that have not vested at the effective date. 

Other reserve

The other reserve represents recognition of the equity component of the convertible loan notes.

Cumulative translation reserve

The translation reserve comprises all foreign exchange differences, net of their tax effect, arising from the translation of the financial statements of operations that do not have a sterling functional currency. Exchange differences are classified as equity and transferred to the Group's translation reserve. Such translation differences are recognised in the income statement in the period in which the operation is disposed of.

6. Copies of financial results

Copies of the unaudited half yearly financial results will be sent to Shareholders shortly. Further copies can be obtained from the Company's Registered Office and will be available for download from www.vaneminerals.com. 

 

END

 

 

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