13 December 2000
Interim Report to Shareholders
During the six months to 30 September 2000 we observed what we believe to be the first signs of a recovery in market conditions for the financing of smaller mining companies. It is a plausible conjecture that investors who burned their fingers in the internet boom of the early part of the year began to look for other, more traditional, opportunities for high growth investment. Whatever the reasons we are encouraged by the change of sentiment and renewed interest in the minerals sector.
The loss for the half year was £40,939, down by 37% compared to the corresponding period last year, this being almost entirely due to the reduced level of activity. Interest charged rose in line with the increased level of borrowing. Expenditure on the Parys property dropped to £12,400 from £45,000, also due to decreased activity.
In practical terms work at Parys Mountain has been kept to a bare minimum since the commencement of the financial year. We remain convinced that a major drilling programme is required and justified. The planned drilling programme of 10,000 metres of surface drilling in ten to fifteen holes is, in our view, the best way to enhance the value of the property. This planned programme is budgeted to cost about £500,000 and would last approximately one year. We continue to seek sources of finance to fund this programme.
The continuing low price of gold and the lack of interest from investors has blunted our enthusiasm for Dolaucothi. We are currently in negotiation with the Crown over the terms of the lease and we are considering other options, possibly including a disposal of this property.
As mentioned in the Annual Report for 2000, during the past year we reviewed the Bula zinc deposit in Ireland which had been placed on the market by its bankers. This deposit is immediately adjacent to Europe's largest zinc mine at Tara. Our evaluation confirmed that the Bula deposit could be developed as a small independent mine. However, a resumption of the protracted litigation which has surrounded Bula delayed the sale process. We have now been advised that this litigation has been substantially resolved and, in conjunction with Minco plc, we have recently submitted a formal offer to acquire the orebody. We expect to hear from the Receiver early in 2001.
We have also evaluated a number of other proposals whereby the company would acquire new projects in the minerals business or indeed in other businesses. We have noticed a increase in the number of opportunities being presented to us and whilst some of these opportunities remain under consideration it is the view of the board that such a transaction will only be undertaken when it is demonstrably in the best interests of shareholders. The board is of the view that the recent weakness in the company's share price does not reflect the underlying value of the company or the Parys Mountain property.
On behalf of the board of directors
John F Kearney
13 December 2000
Unaudited consolidated balance sheet
30 September 2000 30 September 1999 Fixed assets
£ Intangible assets 12,157,634 12,057,365 Tangible assets 186,206 186,418 Total fixed assets 12,343,840 12,243,783 Current assets Debtors 101,893 107,506 Total current assets 101,893 107,506 Current liabilities (note 1) Creditors - amounts due within one year (816,972) (621,546) Net current liabilities (715,079) (514,040) Net assets
11,729,743 Shareholders' funds Share capital 6,650,745 6,607,693 Share premium 5,737,346 5,737,746 Profit & loss account deficit (759,330) (615,696) Total shareholders' funds 11,628,761 11,729,743
Equity shareholders' funds 10,767,583 10,868,565 Non equity shareholders' funds 861,178 861,178
Unaudited consolidated profit and loss account
The directors are unable to recommend a dividend.
Six months to 30 September 2000 Six months to 30 September 1999 £ £ Turnover - - Net operating expenses - continuing operations 40,939 66,629 Interest receivable - - Interest payable 29,620 24,495 Loss on ordinary activities before and after taxation 70,559 91,124 Loss per share - basic 0.1 pence 0.1 pence Loss per share - fully diluted 0.1 pence 0.1 pence
There are no minority interests or extraordinary items.
Unaudited consolidated cash flow statement
Six months to 30 September 2000
Six months to 30 September 1999
Net cash outflow from continuing operating activities
Returns on investments and servicing of finance
UK Corporation tax paid
Capital expenditure and financial investment
Payments to acquire intangible fixed assets
Payments to acquire tangible fixed assets
Net cash outflow from capital investment and financial investment
Net cash outflow before financing
Increase in loans
Expenses of share issues in year
Decrease in cash
Notes : -
- Current liabilities include £666,227 due to Juno Limited, the ultimate parent company.
- The half year figures are unaudited. The accounts have been prepared on a basis consistent with that of the accounts for the year ended 31 March 2000. The auditors' report on those accounts was not qualified and did not contain a statement under section 237 of the Companies Act 1985.
- This interim statement is being posted to all shareholders and is displayed on the company's website at www.angleseymining.co.uk. Copies are available on request from the company's registered office.
Contacts : Ian Cuthbertson John F. Kearney Company Secretary Chairman (44)1248 361333 (1)416 362 6686
|Anglesey Mining plc
Parys Mountain, Amlwch,
Anglesey, LL68 9RE, UK
|Phone +44 1248 361333