3 August 2000
Preliminary statement 2000
Statement by the Chairman, John F. Kearney
The unfavourable markets and financial conditions for the mineral industry, and in particular small companies, have continued during the past year. Anglesey Mining has weathered these problems better than most, thanks to a supportive major shareholder and loyal staff. However real progress in the development of the group's properties has been hampered.
Expenses have been kept to a bare minimum. We have been able to pursue the investigation of new opportunities for the group away from Parys Mountain and we are cautiously optimistic that one of these new developments will become an active project in the coming year. The financial results for the year show a loss of £164,184 up from £111,465 the previous year, principally as the result of higher interest charges of £50,948, almost double the previous year, and increased expenditures on new project investigation and evaluation.
Work has been very limited in the year but continues to demonstrate the excellent potential of the property for further significant discoveries as well as extensions to the existing reserves. An airborne survey was conducted over Parys Mountain by the National Remote Sensing Centre as part of its own research programme and may provide some useful indicators for future development. A review and compilation of all the geological studies carried out on the property over the last four years was completed and the target areas for the identification of new reserves confirmed. The planned drilling programme of 10,000 metres of surface core drilling in ten to fifteen holes remains, in our view, the best way to add value to the existing space. This planned programme is budgeted to cost about £500,000 and would last at least one year. This programme requires new funding.
For some years the company has supported the activities of the Amlwch Industrial Heritage Trust which has among its objectives the conservation and study of Parys Mountain. The Trust has installed a new car park and viewing platform at the mine for visitors to the old workings and has obtained funding for significant improvements to the site. It has also opened some of the 19th century underground workings. The company encourages and supports these endeavours by the Trust. At all stages the work of the Trust has been planned with the expectation of a modern mine being constructed on the site; the management of both the company and the Trust are confident that the co-existence of new mining operations and the conservation and enjoyment of the features remaining from a previous mining era, is entirely feasible and desirable.
One hole was drilled at the Dolaucothi property to follow up the encouraging results received last year but with inconclusive results.
At the end of the year Dr. Alwyn Annels of the Department of Earth Sciences at the University of Cardiff retired from his position as senior lecturer. As director of the University's research and training programme at Dolaucothi, Alwyn was principally responsible for the development of the Dolaucothi project, both as to its historical, scientific and potential mining importance. We are deeply grateful to Alwyn for all the work he has carried out at Dolaucothi over many years and wish him a happy retirement. Fortunately, he will continue to be involved and available at Dolaucothi as an advisor.
During the past year the group reviewed the Bula zinc deposit in Ireland which had been placed on the market by its bankers. The deposit is immediately adjacent to Europe's largest zinc mine at Tara. Initial indications were encouraging and confirmed that the Bula deposit could be developed as a small independent mine. However, a resumption of the protracted litigation which has surrounded the Bula deposit has delayed completion of a sale. We will continue to monitor the situation.
We also evaluated a number of other projects in the mineral business as well as a number of opportunities presented to us from the 'new technology' sector. While a number of these situations remain under review no specific transactions have been concluded.
It has always been the objective of management to develop the Parys Mountain property into a producing mine and to acquire, explore and develop other properties. There have been great difficulties associated with doing this over the past few years, not least among which is the reluctance of shareholders and financial markets generally, to invest in small mineral companies - thus starving companies like Anglesey of the funds required to carry projects forward. Against this background and to assist in the evaluation of new opportunities, the directors have appointed Ermgassen & Co. to advise the group on the identification and acquisition of new ventures.
In order to provide the group with the flexibility to move quickly to take advantage of any new opportunities which may become available, it is proposed to put resolutions to the forthcoming annual general meeting which will increase the authorised but unissued share capital and increase the authority of the directors to issue shares. More information concerning these resolutions is contained in the directors' report. I urge you to support them.
Finally, I am sorry to have to advise that Lord Crickhowell has decided to retire as a director of Anglesey at the forthcoming annual meeting. Lord Crickhowell has been a director since the company was floated in 1988 and his contribution over the last twelve years has been significant. Far from being just a name on the masthead he has been very much involved in the affairs of the group and his advice will be missed. We thank him for his efforts and wish him well.
Anglesey Mining has been fortunate to have been supported 'above and beyond the call of duty' by its directors, staff, advisors, consultants and major shareholders and I would like to thank them for their support.
John F. Kearney
Chairman 3 August 2000
Balance sheets at 31 March 2000 Group Company 2000 1999 2000 1999 £ £ £ £ Fixed assets Intangible assets 12,143,953 12,025,673 11,954,276 11,844,903 Tangible assets 186,206 186,839 186,206 186,839 Investments - - 100,001 100,001 12,330,159 12,212,512 12,240,483 12,131,743Current assets Debtors 100,729 99,884 286,435 276,668 Cash at bank 3,630 11,936 3,630 11,936 104,359 111,820 290,065 288,604Current liabilities Creditors due within one year (734,983) (503,265) (830,983) (599,265)Net current liabilities (630,624) (391,445) (540,918) (310,661)Total assets less current liabilities 11,699,535 11,821,067 11,699,565 11,821,082Capital and reservesShare capital 6,650,745 6,607,693 6,650,745 6,607,693 Share premium account 5,737,546 5,737,946 5,737,546 5,737,946 Profit & loss account deficit (688,756) (524,572) (688,726) (524,557)Equity shareholders' funds 10,838,357 10,959,889 10,838,387 10,959,904 Non equity shareholders' funds 861,178 861,178 861,178 861,17811,699,535 11,821,067 11,699,565 11,821,082Profit and loss account for the year ended 31 March 20002000 1999 £ £ Turnover - continuing operations - - Net operating expenses (115,929) (88,220) Operating loss - continuing operations (115,929) (88,220) Interest payable less receivable (48,255) (23,245) Loss on ordinary activities before taxation (164,184) (111,465) Tax on loss on ordinary activities - - Loss for the financial year (164,184) (111,465)Loss per share - basic (0.1) pence (0.1) pence Loss per share - diluted (0.1) pence (0.1) penceThere is no dividend. There are no minority interests or extraordinary items.Consolidated cash flow statement for the year ended 31 March 20002000 1999 £ £ Net cash outflow from continuing operating activities (96,948) (191,227)Returns on investments and servicing of finance Interest received - 861 Interest paid - (72)- 789 Taxation UK Corporation tax paid - (1,500)Capital expenditure and financial investment Payments to acquire intangible fixed assets (74,895) (205,440) Payments to acquire tangible fixed assets - (1,191)Net cash outflow from capital investment and financial investment (74,895) (206,631)Net cash outflow before financing (171,843) (398,569)Financing Increase in loans 163,937 284,479 Expenses of share issues in year (400) (400)163,537 284,079Decrease in cash (8,306) (114,490)The annual general meeting is called for 11am on 1 September 2000.The accounts on which this preliminary statement is based have been audited and whilst the auditors continue to draw attention to fundamental uncertainties, their report is not qualified.Further details of the company and a complete set of accounts are available on the company's web site www.angleseymining.co.uk.Contacts :Ian Cuthbertson John F. Kearney Company Secretary Chairman 01248 361333 001 416 362 6686- end -
|Anglesey Mining plc
Parys Mountain, Amlwch,
Anglesey, LL68 9RE, UK
|Phone +44 1248 361333