Anglesey Mining plc              

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.

Parys Mountain

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.

Dolaucothi

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.

New Projects

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.

Outlook

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     12,131,743
Current 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        288,604
Current 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     11,821,082
Capital and reserves 
Share 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     861,178
                               11,699,535  11,821,067  11,699,565  11,821,082

Profit and loss account for the year ended 31 March 2000
                                                         2000           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) pence 
 
There is no dividend. There are no minority interests or extraordinary items.

Consolidated cash flow statement for the year ended 31 March 2000
                                                          2000         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      284,079  
  Decrease 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  -


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  Anglesey Mining plc
Parys Mountain, Amlwch,
Anglesey, LL68 9RE, UK
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