Anglesey Mining plc              

27 June 2003

Preliminary Statement 2003

I am disappointed to have to report that once again metal prices
remained low during the year, especially in the case of zinc, and the
company has continued to concentrate its efforts on conserving resources
in anticipation of the long expected improvement in prices.
The company holds an important geological resource at Parys Mountain
which has been identified and described in independent geological
reports. This deposit is beyond and separate from the historic mine
workings and contains a total of 6.5 million tonnes with a combined
average grade for zinc, copper and lead of over 10%. There are also
estimated to be 60,000 ounces of gold and 250 tonnes (8,000,000 ounces)
of silver in this resource.
During the past year work commenced to dewater the higher levels of the
historic mine workings at Parys Mountain. A Project Group including the
Amlwch Industrial Heritage Trust, the company, Anglesey County Council,
the Environment Agency and other interested parties had been set up to
consider the condition of an underground concrete plug. This Group
concluded that the old workings should be dewatered and the plug
removed. The work, which has been undertaken by Anglesey County Council
and funded by the Council and the Welsh Development Agency, is expected
to significantly improve water quality to the south of the Mountain.
Discharge of the water is now almost complete.
This dewatering will also provide access to hitherto inaccessible areas
and enable new studies to be conducted which could help towards a better
geological understanding of the total Parys Mountain area. Whilst the
old workings are separate from the geological resource described above,
they are adjacent and parallel to a significant unmined deposit, the
Northern Copper Zone, which lies to the north of the old workings and
which was extensively explored by major mining companies, including
Noranda and Cominco in the 1960s and 70s. At that time it was reported
that the Northern Copper Zone contained 36,000,000 tonnes at an average
grade of 0.66% copper. It apparently was not assayed for gold. The
company plans to re-examine the potential of the Northern Copper Zone as
well as the prospective area deeper than and to the west of the White
Rock zone referred to in earlier reports and to carry out further
drilling closer to its identified resources, when funding permits.
The loss for the year was 121,299 before an exceptional item compared
with a loss of 106,078 for last year. As a result of continued low
metal prices, combined this year with a deterioration in the foreign
exchange rate, a further impairment provision of 2 million against the
value of the Parys Mountain property has been provided this year (last
year 2,200,000).
In order to better structure the company's activities and property
holdings, all the mineral rights required for the operation of the Parys
property have been transferred during the year from Anglesey Mining plc
to Parys Mountain Mines (UK) Limited, a wholly owned subsidiary,
together with the relevant accumulated expenditures and provisions.
John F Kearney
Chairman

 

Group balance sheet as at 31 March 2003
                                               2003            2002
                                                              
Fixed assets                                               
Intangible assets                          5,156,609        7,094,687
Tangible assets                              186,602          185,240
                                           5,343,211        7,279,927
Current assets                                             
Debtors                                      106,211          102,935
Cash at bank and in hand                       2,260           13,166
                                             108,471          116,101
Current liabilities                                        
Creditors - amounts due                                    
 within one year                          (1,275,473)      (1,098,520)
Net current liabilities                   (1,167,002)        (982,419)
Total net assets                           4,176,209        6,297,508
                                                           
Capital and reserves                                       
Share capital - equity                     1,162,414        1,162,414
Share capital - non-equity                 5,510,833        5,510,833
Share premium account - equity             5,737,146        5,737,146
Profit & loss account - deficit - equity  (8,234,184)      (6,112,885)
                                                           
Total shareholders' funds                  4,176,209        6,297,508
                                                           
Group profit and loss account for the year ended 31 March 2003
                                                2003             2002
                                                                 
Turnover - continuing operations                 -                -
Net operating expenses                         (51,260)         (38,822)
                                                              
Exceptional item:                                             
 Provision for impairment                                     
 of intangible assets                       (2,000,000)      (2,200,000)
                                                              
Loss on ordinary activities                 (2,051,260)      (2,238,822)
before interest & taxation
                                                              
Interest receivable                              2,139            2,451
Interest payable                               (72,178)         (69,707)
                                                              
Loss on ordinary activities before taxation (2,121,299)      (2,306,078)
                                                              
Tax on loss on ordinary activities            -                -
                                                              
Loss for the financial year                 (2,121,299)      (2,306,078)
                                                              
Loss per share - basic                        (1.9) pence     (2.0) pence
Loss per share - diluted                      (1.9) pence     (2.0) pence

Group cashflow statement for the year ended 31 March 2003
                                                    2003             2002
                                                                        
Net cash outflow from                                      
continuing operating activities                   (57,991)          (67,450)
                                                                    
Returns on investments and                                 
servicing of finance
   Interest received                                   18                -
   Interest paid                                      (11)             (75)
                                                        7              (75)
Taxation                                                   
  UK Corporation tax                                    -                -
                          
                                                                   
Capital expenditure and financial investment
   Payments to acquire intangible fixed assets    (10,922)          (7,783)
   Payments to acquire tangible fixed assets       (2,000)                -
                          
                                                  (12,922)          (7,783)
                                                                    
Net cash outflow before financing                 (70,906)         (75,308)
                                                                    
Financing                                                
   Increase in loans                               60,000           87,930
   Expenses of share issues in year                      -            (200)
                          
                                                   60,000           87,730
                                                                    
Increase/(decrease) in cash                       (10,906)           12,422
                                                                    
                                                                    
Contacts -
     J F Kearney Chairman - + 1 (416) 362 6686
     Ian Cuthbertson Finance director - 01248 361333

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  Anglesey Mining plc
Parys Mountain, Amlwch,
Anglesey, LL68 9RE, UK
  Phone  +44 1248 361333  
 mail@angleseymining.co.uk
 

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