Cambridge Minerals Resources Plc / Index: AIM / Epic: CMR / Sector: Mining
25 September 2008
Cambridge Mineral Resources Plc ('CMR' or 'the Company')
Interim Results
Cambridge Mineral Resources Plc, the AIM listed mining exploration and production company primarily targeting
precious metals in South America, announces its interim results for the six month period ended 30 June 2008.
Overview
* Secured up to US$15 million project finance under a pre-payment agreement
* Shift from pure exploration to production Company - anticipated late 2008
* Quintana Gold Mine initial rate of production expected ~15,200 ozs of gold and 6,000 ozs of silver per annum
* Completed in-house feasibility study on the Rasuhuilca silver-gold project in Peru, concluding it has
the potential to yield 1,000,000 oz silver and 15,000 oz of gold over a five year initial mine life
* Loss for the period �541,316 (2007: loss of �603,735)
CHAIRMAN'S STATEMENT
It gives me great pleasure to report on the progress we have made as we advance and add value to our portfolio
of mineral projects primarily focused in South America. I believe we are entering a transitional period, as
we approach production at our first project, the Quintana gold mine in Colombia, later this year and we remain
committed to achieving our objective of producing circa 100,000 oz gold per annum from our South American
assets.
2008 is shaping up to be a milestone year for CMR with the expected shift from pure exploration to production.
To achieve this objective, it has been necessary for the Company to secure financing to develop its Colombian
assets. The Company announced in January that it had secured up to US$15 million project finance under a pre-
payment agreement (the 'Agreement') under which CMR is obliged to deliver gold (or the cash equivalent of such
gold) over a set period of time following the commencement of each mine.
The first tranche of US$5.5 million of the project finance was called by the Company in January to cover the
funding costs associated with bringing the Quintana gold mine into production. These funds have been put
towards the commencement of site preparation, mine infrastructure development and the construction of the
processing plant. Once in production, it is estimated that the mine will be producing at an initial rate of
~15,200 ozs of gold and 6,000 ozs of silver per annum. Drilling, which is currently underway, may lead to
further resources being defined with a commensurate increase in the mining production rate.
The remaining two prepayments, totalling US$9.5 million, will become available to CMR once it has successfully
completed feasibility studies on two of the further gold mine projects, which it currently holds under option
in Colombia.
In Peru, the Company has completed an in-house feasibility study on the Rasuhuilca silver-gold project, which
has concluded that it has the potential to yield 1,000,000 oz silver and 15,000 oz of gold over a five year
initial mine life. The study has indicated that Rasuhuilca could generate, at the spot metal prices used at
the time of the study (US$14.50/oz silver, US$900/oz gold) after tax profits of approximately US$9 million.
The study also indicates that mine development could be completed within 12 months and concludes that the
project is capable of generating a small but rewarding return on investment. CMR is currently examining the
options for how best to advance the project.
In Bulgaria, CMR completed an earn-in JV agreement in Q4 2007 whereby Electrum Gold Inc. can earn up to an 80%
interest in a number of existing exploration permits presently held by the Company in Bulgaria. To earn this
interest Electrum is required to spend US$2.25 million over five years. The Company has recently announced
the acquisition of a further three copper-gold Bulgarian permits for an initial three year period. These new
permits, which cover 180 km �, are covered under the existing JV. Also in Europe, the Company continues to
discuss with third-parties the possible opportunities to finance and advance these projects by way of
divestment or JV.
During the period, the Company raised �400,000 before expenses through a placing with Allianz Equity
Investments Ltd with such funds being used for general business development, including funding the
initial capital requirement needed for the advancement of the Company's silver mine in Peru. The Company
has since announced in September that it has raised a further �360,000 for general working capital. While CMR
strives towards achieving its goal of bringing Quintana into production by the end of 2008, the Company may
require further funding and may return to the market in Q4 2008.
The loss for the period was �541,316 (2007: loss of �603,735). CMR continues to seek to minimise
administration expenditure, notwithstanding the increasing burden of regulatory compliance costs.
Moving forward, the Company remains confident in the development of its South American assets and we look
forward to reporting our maiden production at Quintana. Despite current market conditions, the Company
remains enthusiastic about its prospects of joining the ranks of junior gold and silver producers in the near
future. To conclude, I would like to thank our shareholders for their ongoing support and, as always, our
staff for their continued dedication and hard work.
Neil Maclachlan
Chairman
25 September 2008
Condensed Unaudited Consolidated Interim Income Statement
For 6 months ended 30 June 2008
Unaudited Unaudited Audited
30 June 2008 30 June 2007 31 December
2007
Continuing operations � � �
Other income 9,413 4,238 7,005
Administrative costs (550,729) (588,773) (774,467)
Impairment of exploration costs - - (413,020)
Forgiveness of loan - - 459,477
Disposal of available for sale investment - (19,200) (22,400)
Excess of acquirer's interest in the net fair value of acquiree's
identifiable net assets over cost - - 94,000
Loss before and after tax (541,316) (603,735) (649,405)
Loss after tax (541,316) (603,735) (649,405)
Attributable to:
Equity holders of the parent (541,316) (603,735) (646,399)
Minority interest - - (3,006)
(541,316) (603,735) (649,405)
Loss per share:
Basic loss per share (0.18p) (0.29p) (0.24p)
Diluted loss per share (0.18p) (0.29p) (0.24p)
All transactions arise from continuing operations.
Unaudited consolidated Statement of Recognised Income and Expenses
For 6 months ended 30 June 2008
Unaudited Unaudited Audited
30 June 2008 30 June 2007 31 December
2007
� � �
Exchange differences on translation of foreign operations 427,529 19,524 668,211
Transfers:
Transferred to profit and loss on sale of available for sale investment - - 48,500
Net income recognised directly in equity 427,529 19,524 716,711
Loss for the period (541,316) (603,735) (649,405)
Total recognised income and expense for the period (113,787) (584,211) (67,306)
Attributable to:
Equity holders of parent (113,787) (584,211) (69,560)
Minority Interest - - 2,254
Condensed Unaudited Interim Consolidate Balance Sheet
For 6 months ended 30 June 2008
Unaudited Unaudited Audited
30 June 2008 30 June 2007 31 December
2007
Assets � � �
Non-current assets
Exploration expenditure 10,253,371 7,367,278 8,342,698
Property, plant and equipment 325,901 99,780 172,626
Goodwill 1,191,706 1,115,241 1,191,706
Investment in joint venture - 934,025 -
11,770,978 9,516,324 9,707,030
Current assets
Cash and cash equivalents 489,391 36,481 40,862
Trade and other receivables 629,742 512,919 456,393
1,119,133 549,400 497,255
Total assets 12,890,111 10,065,724 10,204,285
Liabilities
Non-Current Liabilities
Borrowings (1,507,381) - (86,303)
Current liabilities
Short term borrowings (812,044) - -
Trade and other payables (1,115,065) (731,404) (931,995)
(1,927,109) (731,404) (931,995)
Total liabilities (3,434,490) (731,404) (1,018,298)
Net assets 9,455,621 9,334,320 9,185,987
Equity
Equity attributable to equity holders of the parent
Share capital 2,911,156 2,173,322 2,711,156
Share premium account 11,341,207 10,623,474 11,160,040
Revaluation reserve - 45,300 -
Merger reserve 2,116,435 2,116,435 2,116,435
Translation reserve 1,045,945 - 618,416
Accumulated loss (7,959,122) (5,624,211) (7,417,806)
Equity attributable to equity holders of the parent 9,455,621 9,334,320 9,188,241
Minority interest - - (2,254)
Total equity 9,455,621 9,334,320 9,185,987
Unaudited Cash Flow Statement
For 6 months ended 30 June 2008
Unaudited Unaudited Audited
30 June 2008 30 June 2007 31 December
2007
� � �
Loss before taxation (541,316) (603,735) (649,405)
Depreciation 4,529 (7,004) 38,566
Amortisation - - 2,254
Interest Received (1,475) - -
(Increase) / Decrease in debtors (154,235) 290,399 (43,364)
Increase in creditors 288,983 319,219 353,128
Impairment - - 413,020
Foreign exchange movements 11,685 13,427 1,816
Forgiveness of loan - - (459,477)
Loss on disposal of property, plant and equipment - - 34,973
Excess of acquirer's interest in the net fair value of acquiree's
identifiable net assets - - (94,000)
Loss on disposal of available for sale asset - - 22,400
Net cash (outflow) / inflow from operating activities (391,829) 12,306 (380,089)
Investing Activities
Exploration costs (1,626,718) (818,197) (1,578,955)
(Purchase) / Proceeds of sale of property, plant and equipment (153,275) 29,406 (87,952)
(Loss) / Profit from sale of available for sale investment - (19,200) 57,600
Interest received 1,475 4,238 4,973
Acquisition of investments - (48,645) -
Net cash used in investing activities (1,778,518) (852,398) (1,604,334)
Financing activities
Proceeds from issue of share capital 400,000 250,000 1,411,500
Share issue costs (18,833) - (87,100)
Proceeds from borrowings 2,233,122 - 79,493
Net cash from financing activities 2,614,289 250,000 1,403,893
Increase / (Decrease) in cash 443,942 (590,092) (580,530)
Cash at the beginning of the period 40,862 626,573 621,392
Effect of Exchange Rate Movements 4,587 - -
Cash and Cash Equivalents at the end of the period 489,391 36,481 40,862
The accompanying accounting policies and notes form an integral part of these financial statements.
Notes to the Financial Statements
1. Basis of Preparation
The financial information contained within this interim report is unaudited. It does not constitute
statutory accounts within the meaning of section 240 of the Companies Act 1985. The auditor's report on
the accounts for the year ended 31 December 2007 was unqualified, however, it did contain an emphasis of
matter on the adequacy of the disclosure made in the significant accounting policies to the financial
statements concerning the group's ability to continue as a going concern, and it did not contain statements
under section 237(2) or (3) of the Companies Act 1985.
2. Significant Accounting Policies
The interim results have been prepared in accordance with IFRS accounting rules. The Accounting Policies
used in the preparation of these results were the accounting policies used in the preparation of the
results for the year ended 31 December 2007 and detailed in the notes to those results (see Annual Report
2007 issued 18 July 2008).
3. Going Concern
These consolidated financial statements are prepared on a going concern basis which the directors believe
to be appropriate for the following reasons:
In common with many exploration companies, the Company raises finance for its exploration and appraisal
activities in discrete tranches to finance its activities for limited periods only.
In the period the Company has raised �400,000 before expenses through an equity placing and secured a
project finance facility of which US$5.5m has been drawn upon. The Company has since announced in
September that it has raised a further �360,000 for general working capital.
Management expects that there will be sufficient funding to meet their needs on the basis of the funding
that has been raised, or is planned to be raised.
* * ENDS * *
For further information, visit www.cambmin.co.uk or contact:
Colin Andrew Cambridge Mineral Resources plc +44 (0) 20 7663 5618
Managing Director candrew@iol.ie
Michael Burton Cambridge Mineral Resources plc +44 (0) 20 7663 5618
Finance Director mburton@cambmin.co.uk
Gavin Burnell / Ruegg & Co Limited +44 (0) 20 7584 3663
Roxane Marffy
Colin Rowbury Hichens, Harrison and Co +44 (0) 20 7382 7771
Tom Beattie Haywood Securities (UK) Limited +44 (0) 20 7031 8018
Victoria Thomas St Brides Media & Finance Ltd +44 (0) 20 7236 1177
Notes to Editor
Cambridge Mineral Resources plc is an AIM listed mining and exploration company focussed on becoming a
producer of precious metals with an output equivalent to 100,000 oz gold per annum. Primarily targeting
precious metals in South America, its strategy is to acquire established resources at an advanced stage of
exploration or near term production and develop mineable reserves through further exploration. It has a
strong portfolio of mineral projects at varying stages of development including its two key projects, the
Quintana gold mine in Colombia, which it anticipates bringing into production by the end of 2008 and the
Rasuhuilca silver gold mine in Peru on which a feasibility study has just been completed. The Company also
has a portfolio of significant mineral assets in Europe, which it is currently in the process of divesting
through either joint-venture or sale.
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