RNS Number:2605K
Investika Ltd
19 December 2007
Investika Ltd
19 December 2007
INVESTIKA LTD
19 December 2007
Please find below the announcement made by Toledo Mining Corporation plc
('Toledo Mining') today regarding its interim results for the six month period
ended 30 September 2007. Investika Ltd holds 10.8% of the issued share capital
of Toledo Mining.
Enquiries to:
Chrisilios Kyriakou, Chief Executive Officer
Investika Ltd
Telephone: 020 7514 1480
James Joyce /David Porter
WH Ireland Limited
Telephone: 020 7220 1666
INTERIM RESULTS FOR THE SIX MONTH PERIOD ENDED
30 SEPTEMBER 2007
CHAIRMAN'S STATEMENT
In the period under review, Toledo Mining Corporation's activities continued to
be focused on the development and evaluation of several large laterite nickel
orebodies on Palawan Island in the Philippines.
I am pleased to advise that the Company has over the current period achieved its
current objective of establishing direct shipping operations at the Berong
nickel project on the island of Palawan, Philippines.
Over the six month period 1 April to 30 September 2007, a total of 353,300 wet
metric tons of laterite nickel ore at an average grade of 1.53% Ni was shipped
to China and Australia. Total shipments over the period 1 January to 18
December 2007 amount to 530,168 wet metric tons at an average grade of 1.53% Ni.
Shipments in the period since July 2007 have been impacted by customer shipping
schedules and the wet season on Palawan. All shipments are sold on a free on
board basis with customers making their own shipping arrangements.
Rehabilitation of the areas mined has commenced and a research plot prepared to
determine the best tree species to replace the trees cut during operations.
An agreement was reached with BHP Billiton for the long term supply of laterite
ore to the Yabulu plant in Queensland, Australia. The agreement is for the
supply of up to 500,000 wet metric tons of ore per year, and runs for 5 years
with BHP Billiton having the option to extend this for a further 5 years. The
Company has the ability to supply to BHP Billiton more ore than the contracted
quantities. Discussions are underway with several Chinese customers for similar
long term supply agreements.
Project activities completed include the coastal stockpile drying pad area and
associated siltation management system, assay laboratory, potable water system,
crusher and batch plant facilities, and the pedestrian footbridge over the
Berong River. Designs and costings were completed for the permanent offices,
accommodation village, workshop facilities, Dangla Road, and Berong airstrip
upgrade.
Activities planned for the second half-year include construction of the
permanent office and accommodation facilities, the heavy equipment maintenance
workshops, and modifications to the causeway. The latter is planned to involve
extending and reinforcing the causeway used for barge loading to better
withstand the strong wave action during the typhoon season.
Permit approvals continue to delay the start of construction of the Dangla Road,
a dedicated haul road without community development along its route.
The Company entered into a (exploration) Mineral Production Sharing Agreement
(MPSA No.235-2007-IVB) with the Philippine Government covering the 288 hectare
Berong Nickel Project. The current Direct Shipping Operation falls under the
MPSA and the associated Special Mines Permit. The Feasibility Study Report for
the life-of-mine operations was completed and submitted to the Department of
Environment and Natural Resources to enable the "Declaration of Mining
Feasibility" for this MPSA area. Validation of the Ore Reserves was also
undertaken.
During the period, a JORC compliant mineral resource prepared by Snowdens Mining
Industry Consultants from Perth, Australia was completed. The following is a
summary of the JORC compliant mineral resource : The measured, indicated and
inferred resource within the 288 ha MPSA area is estimated at 9.92 million
tonnes at an average grade of 1.55% Ni using a 1% nickel cut-off grade,
containing over 150,000 tonnes of nickel. (Drilling within the MPSA area is
ongoing and is aimed at delineating additional tonnage).
The assessment of processing options to add value to the large lateritic
resources at Berong continued. Samples of the various ore types have been
delivered to SGS Lakefield testing laboratory in Perth, Australia. A test work
programme has been developed in conjunction with SNC Lavalin, covering:
* Ore characterisation
* Agitation atmospheric leach
* High Pressure Acid leach
* Bottle roll simulation of heap leach
In addition to the above test work, a preliminary simulation of the nickel pig
iron blast furnace operation has been completed to assess the mass balance,
product quality and consumables.
Field exploration and evaluation activities continued at the Ipilan/Celestial
nickel project, with excellent progress continuing to be made.
Drilling continues to be used where the ore body is too deep for hand pitting.
Drilling and pitting has mainly been undertaken on a grid spacing of 25meters x
25 meters and shows the thickness of mineralisation to be between 15 meters to
20 meters, with the thickest intersections being up to 55 meters. Over the
areas tested, this would indicate more than 60 million tonnes of laterite nickel
mineralisation within a small footprint. Historical records from widely spaced
test pits and old drilling indicate the average grade of this mineralisation is
likely to be between 1.2% and 1.3% Ni. These grades will be validated when the
large backlog in assay results are completed. This estimation of mineralisation
grade and tonnage is conceptual in nature, with insufficient exploration to
define a mineral resource and uncertainty as to whether further exploration will
result in the determination of a mineral resource.
Because of the large backlog in assaying through the commercial laboratory being
used, a JORC compliant ore resource estimate is now expected to be released in
first quarter 2008. The drilling and test pitting undertaken to date is more
than adequate for an initial Direct Shipping Operation (DSO) followed by a value
added processing plant. The intensity of drilling and pitting, combined with
the metallurgical test samples collected, will allow all the ore type to be
adequately characterised and assessed. It further provides confidence to
potential financiers and investors of a processing plant that a sufficient
resource exists to underpin an operation with a life of more than 30 years.
Present indications are that the ore types are ideal for leaching, and similar
to the laterite ores being processed through the HPAL plant at Rio Tuba on
Palawan. The ore types are also suitable for the Chinese blast furnace process
for producing nickel pig iron.
Project activities have focussed on the early development of a DSO. Leighton
Contractors Phils Inc has been commissioned to undertake the preliminary
engineering and infrastructure scoping studies. Environmental studies have
commenced with the gathering of base line data. Scoping of the marine
bathymetric survey is underway as is preliminary ore body modelling. All
studies are directed at an initial 1.5 million wet metric ton per year mining
operation.
Limited activity has been undertaken on the Ulugan nickel project over the
period and has been primarily directed at efforts to procure exploration permits
over the area of interest.
Together, Berong, Celestial and Ulugan represent world class projects with a
combined pre-JORC resource of some 350 million tonnes at 1.3% nickel and an
estimated total nickel content of more than 4.5 million tonnes. The deposits
offer the potential to recover both limonite and saprolite ore. (Our pre-JORC
resource is defined as being conceptual in nature with insufficient exploration
to define the mineral resource and with uncertainty as to whether further
exploration will result in the determination of a mineral resource).
The Philippines has been exporting nickel ore for 25 years, and is well located
to supply major world markets. Two thirds of global nickel production is used
in the manufacture of stainless steel, demand for which has grown sharply, with
the Chinese market accounting for much of the growth.
The Company remains well financed with cash in the bank at 30 September 2007 of
�9.9 million.
Chrisilios Kyriakou, Chairman
19 December 2007
ENQUIRIES:
Toledo Mining Corporation Plc Tel: +44 (0) 20 7514 1482
Annie Richards arichards@toledomining.com
Pelham Public Relations Tel: +44 (0) 20 7743 6672
Charles Vivian charles.vivian@pelhampr.com
Nabarro Wells & Co. Limited Tel: +44 (0) 20 7710 7400
Hugh Oram
INDEPENDENT REVIEW REPORT TO TOLEDO MINING CORPORATION PLC
Introduction
We have been engaged by the Company to review the condensed set of financial
statements in the half-yearly financial report for the six months ended 30
September 2007 which comprises the Consolidated Income Statement, the
Consolidated Balance Sheet, the Statement of Changes in Equity, the Consolidated
Cash Flow Statement and the related notes numbered 1 to 10. We have read the
other information contained in the half-yearly financial report and considered
whether it contains any apparent misstatements or material inconsistencies with
the information in the condensed set of financial statements.
Directors' responsibilities
The half-yearly financial report is the responsibility of, and has been approved
by, the directors. The AIM Rules require that the accounting policies and
presentation applied to the interim figures should be consistent with those
applied in preparing the preceding annual accounts except where any changes, and
the reasons for them, are disclosed.
As disclosed in note 2, the annual financial statements of the group are
prepared in accordance with IFRSs as adopted by the European Union. The
condensed set of financial statements included in this half-yearly financial
report has been prepared in accordance with International Accounting Standard
34, "Interim Financial Reporting," as adopted by the European Union.
The report is made solely to the Company in accordance with guidance contained
in International Standard on Review Engagements (UK and Ireland) 2410, 'Review
of Interim Financial Information Performed by the Independent Auditor of the
Entity' issued by the Auditing Practices Board. To the fullest extent permitted
by law, we do not accept or assume responsibility to anyone other than the
Company, for our work, for this report, or for the conclusions we have formed.
Our Responsibility
Our responsibility is to express to the Company a conclusion on the condensed
set of financial statements in the half-yearly financial report based on our
review.
Scope of Review
We conducted our review in accordance with International Standard on Review
Engagements (UK and Ireland) 2410, 'Review of Interim Financial Information
Performed by the Independent Auditor of the Entity' issued by the Auditing
Practices Board for use in the United Kingdom. A review of interim financial
information consists of making enquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other review
procedures. A review is substantially less in scope than an audit conducted in
accordance with International Standards on Auditing (UK and Ireland) and
consequently does not enable us to obtain assurance that we would become aware
of all significant matters that might be identified in an audit. Accordingly, we
do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to
believe that the condensed set of financial statements in the half-yearly
financial report for the six months ended 30 September 2007 is not prepared, in
all material respects, in accordance with International Accounting Standard 34
as adopted by the European Union.
Sawin & Edwards
Chartered Accountants
15 Southampton Place
WC1A 2AJ
19 December 2007
UNAUDITED CONSOLIDATED INCOME STATEMENT
For the six months period ended 30 September 2007
Note Six months period Six months period Year ended
ended ended 31 March 2007
30 September 30 September
2007 2006
(Unaudited) (Unaudited) (Audited)
� � �
Revenue 583,510 46,760 186,229
Gross profit 583,510 46,760 186,229
Administrative expenses (1,180,571) (657,114) (2,098,316)
Other operating income 60,402 71,652 143,448
Realised / unrealised losses on (251,550) (7,954) (93,543)
current asset investments
Share of results of associates 2,840,147 (103,069) 276,289
Profit / (loss) from operations 2,051,938 (649,725) (1,585,893)
Investment income 294,157 146,069 321,477
_______ ________
Profit / (loss ) before taxation 2,346,095 (503,656) (1,264,416)
Income tax expense 9 (595,818) - -
_______ ________
Profit / (loss) for the period 1,750,277 (503,656) (1,264,416)
Attributable to:
Equity holders of the parent 1,538,468 (503,656) (1,300,374)
Minority interest 211,809 - 35,958
1,750,277 (503,656) (1,264,416)
Earnings / (loss) per share 3
(pence) - including share of
associates results
Basic 5.30 (1.84) (4.72)
Diluted 5.14 (1.64) (4.48)
Loss per share (pence) - 3
excluding share of associates
results
Basic (2.43) (1.47) (5.73)
Diluted (2.36) (1.31) (5.43)
The Group has no recognised gains or losses other than the results for the
period as set out above.
UNAUDITED CONSOLIDATED BALANCE SHEET
30 September 2007
Note As at As at As at
30 September 2007 30 September 2006 31 March 2007
(Unaudited) (Unaudited) (Audited)
� � �
ASSETS
Non Current Assets
Intangible assets - 1,287,749 -
Property, plant and equipment 20,695 46,104 33,397
Investments in associated 4 13,193,821 9,974,316 10,353,674
undertakings
Loans and receivables 5 3,069,061 535,404 1,812,274
Trade and other receivables 38,450 38,450 38,450
Total non current assets 16,322,027 11,882,023 12,237,795
Current Assets
Trade and other receivables 840,551 2,033,790 490,282
Loans and receivables - - 3,129,520
Investments 383,364 915,306 915,568
Cash and cash equivalents 9,946,316 8,592,739 8,031,291
Total current assets 11,170,231 11,541,835 12,566,661
_________ _________ ________
Total Assets 27,492,258 23,423,858 24,804,456
EQUITY AND LIABILITIES
Current Liabilities 1,126,428 1,289,474 1,659,721
Trade and other payables
________ ________ _______
Total current liabilities 1,126,428 1,289,474 1,659,721
Non -current liabilities
Deferred income tax liabilities 6 595,818 - -
_______ _______ _______
Total non-current liabilities 595,818 - -
________ _______ ________
Total Liabilities 1,722,246 1,289,474 1,659,721
UNAUDITED CONSOLIDATED BALANCE SHEET (continued)
30 September 2007
Note As at As at As at
30 September 2007 30 September 2006 31 March 2007
(Unaudited) (Unaudited) (Audited)
� � �
Equity and Reserves
Called up share capital 7 1,459,417 1,377,417 1,429,417
Share premium 23,907,908 21,935,508 23,062,908
Share based payments reserve 705,921 515,838 1,107,326
Profit and loss account (551,224) (1,694,379) (2,491,097)
Equity attributable to equity 25,522,022 22,134,384 23,108,554
holders of the parent
Minority interest 247,990 - 36,181
-247,990
Total Equity 25,770,012 22,134,384 23,144,735
Total equity and liabilities 27,492,258 23,423,858 24,804,456
These interim results were approved by the Board on 19 December 2007 and signed
on their behalf by:
C Kyriakou,
Chairman
UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the six months period ended 30 September 2007
Share Share Share Based
Capital Premium Payments Profit and Total
Reserve Loss
� � � � �
Balance at 1April 2007 1,429,417 23,062,908 1,107,326 (2,491,097) 23,108,554
Share issue 30,000 845,000 - - 875,000
Profit for the period - - - 1,538,468 1,538,468
Share based reserve transfer - (401,405) 401,405
- -
Balance at 30 September 2007 1,459,417 23,907,908 705,921 (551,224) 25,522,022
Share Share Share Based
Capital Premium Payments Profit and Total
Reserve Loss
� � � � �
Balance at 1 April 2006 898,667 12,523,833 - (1,202,229) 12,220,271
IFRS Transition adjustments - 360,571 11,506 372,077
-
Restated balances at 1 April 898,667 12,523,833 360,571 (1,190,723) 12,592,348
2006
Share issue 530,750 10,539,075 - - 11,069,825
Loss for the period - - - (1,300,374) (1,300,374)
Share based payments - 746,755 __746,755
- -
Balance at 31 March 2007 1,429,417 23,062,908 1,107,326 (2,491,097) 23,108,554
Share Share Share Based
Capital Premium Payments Profit and Total
Reserve Loss
� � � � �
Balance at 1 April 2006 898,667 12,523,833 - (1,202,229) 12,220,271
IFRS Transition adjustments - 360,571 11,506 372,077
-
Restated balances at 1 April 898,667 12,523,833 360,571 (1,190,723) 12,592,348
2006
Share issue 478,750 9,411,675 - - 9,890,425
Loss for the period - - - (503,656) (503,656)
Share based payments - 155,267 155,267
- -
Balance at 30 September 2006 1,377,417 21,935,508 515,838 (1,694,379) 22,134,384
UNAUDITED CONSOLIDATED CASH FLOW STATEMENT
for the six months period ended 30 September 2007
Six months period Six months period Year ended
ended ended 31 March 2007
30 September 2007 30 September 2006
(Unaudited) (Unaudited) (Audited)
� � �
Cash flows from operating activities
Operating profit / ( loss) 2,051,938 (649,725) (1,585,893)
Increase in trade and other receivables (289,201) (1,830,624) (239,596)
(Decrease) / increase in trade & other (533,293) (227,125) 143,122
payables
Depreciation 13,390 16,371 37,326
Write down of intangible expenditure - - 50,048
Share of associate undertakings results (2,840,147) 103,069 (276,289)
Increase in investments 532,204 (18,306) (18,568)
Share based payments - 155,267 746,755
Translation exchange loss 194,177 - -
_______ ________ ________
Net cash flows from operating activities (870,932) (2,451,073) (1,143,095)
CASH FLOW STATEMENT
Net cash outflow from operating activities (870,932) (2,451,073) (1,143,095)
Investing Activities
Investment income 167,897 82,434 193,843
Purchase of property, plant & equipment (688) (3,691) (11,939)
Loan investments advanced (1,385,772) (535,404) (4,925,092)
Loan investments repaid 3,129,520 - -
Purchase of intangibles - (1,237,701) -
________ ________ ________
Net cash flow from investing activities 1,910,957 (1,694,362) (4,743,188)
Financing activities
Issue of equity share capital 875,000 9,890,425 11,069,825
______ ________ _________
Net cash inflow from financing activities 875,000 9,890,425 11,069,825
Increase in cash & cash equivalents 1,915,025 5,744,990 5,183,542
Cash and cash equivalents brought forward 8,031,291 2,847,749 2,847,749
________ ________ ________
Cash and cash equivalents carried forward 9,946,316 8,592,739 8,031,291
NOTES TO THE UNAUDITED INTERIM RESULTS
For the six months period ended 30 September 2007
1. General information
Toledo Mining Corporation Plc is a company incorporated in England and Wales
under the Companies Act 1985. The Company's registered office is 11 Albemarle
Street, London, W1S 4HH.
The principal activity of the Group is the investment in and exploration and
development of mining projects, specifically in the Philippines.
The Group's principal activity is carried out in US dollars. The interim
results are presented in pounds sterling as this is the currency of the country
(the UK) from which the Group operates.
The Board of directors has authorised the issue of these interim results on the
date of the statement as set out on page 9.
2. Accounting policies
Basis of accounting
The interim results have been prepared in accordance with International
Accounting Standard 34 "Interim Financial Reporting".
The annual financial statements have been prepared in accordance with
International Financial Reporting Standards (IFRSs)
The interim results have been prepared on the historical cost basis except that
certain financial instruments are accounted for at fair values. The principal
accounting policies adopted are set out below.
Basis of consolidation
The consolidated interim results incorporate the interim results of the Company
and all Group undertakings. Control is achieved when the Company has the power
to govern the financial and operating policies of an investee entity so as to
obtain benefits from its activities.
On acquisition, the assets and liabilities and contingent liabilities of a
subsidiary are measured at their fair values at the date of acquisition. Any
excess of the cost of acquisition over the fair value of the identifiable net
assets acquired is recognised as goodwill. Any deficiency of the cost of
acquisition below the fair value of the identifiable net assets acquired (i.e.
discount on acquisition) is credited to profit and loss in the period of
acquisition. The interest of minority shareholders is stated at the minority's
proportion of the fair values of the assets and liabilities recognised.
Subsequently, any losses applicable to the minority interest in excess of the
minority interest are allocated against the interests of the parent.
The results of subsidiaries acquired or disposed of during the year are included
in the consolidated income statement from the effective date of acquisition or
up to the effective date of disposal, as appropriate.
Where necessary, adjustments are made to the interim results of subsidiaries to
bring the accounting policies used into line with those used by the Group.
All intra-group transactions, balances, income and expenses are eliminated on
consolidation.
Investments in Associates
An associate is an entity over which the Group is in a position to exercise
significant influence, but not control or joint control, through participation
in the financial and operating policy decisions of the investee.
The results and assets and liabilities of associates are incorporated in these
interim results using the equity method of accounting. Investments in
associates are carried in the balance sheet at cost as adjusted by
post-acquisition changes in the Group's share of the net assets of the
associate, less any impairment in the value of individual investments. Losses
of the associates in excess of the Group's interest in those associates are not
recognised.
Where a Group company transacts with an associate of the Group, profits and
losses are eliminated to the extent of the Group's interest in the relevant
associate. Losses may provide evidence of an impairment of the asset
transferred in which case appropriate provision is made for impairment.
Revenue recognition
Revenue and other operating income represent the provision of consultancy,
management and office services for the year.
Interest income is accrued on a time basis, by reference to the principal
outstanding and at the effective interest rate applicable, which is the rate
that exactly discounts estimated future cash receipts through the expected life
of the financial asset to that asset's net carrying amount.
Gains and losses on current asset investments represent realised and unrealised
gains / (losses).
Foreign currencies
Transactions in currencies other than pounds sterling are recorded at the rates
of exchange prevailing on the dates of the individual transactions. For
practical reasons, a rate that approximates to the actual rate at the date of
the transaction is often used. At each balance sheet date, monetary assets and
liabilities that are denominated in foreign currencies are retranslated at the
rates prevailing on the balance sheet date. Non-monetary assets and liabilities
that are denominated in foreign currencies are retranslated at the rates
prevailing at the balance sheet date. Gains and losses arising on retranslation
are included in net profit or loss for the period. On consolidation, the assets
and liabilities of the Group's overseas operations are translated at exchange
rates prevailing on the balance sheet date. Income and expense items are
translated at the average exchange rates for the period unless exchange rates
fluctuate significantly. Exchange differences arising, if any, are classified
as equity and transferred to the Group's translation reserve. Such translation
differences are recognised as income or as expenses in the period in which the
operation is disposed of.
Deferred taxation
Deferred tax is the tax expected to be payable or recoverable on differences
between the carrying amounts of assets and liabilities in the interim results
and the corresponding tax bases used in the computation of taxable profit, and
is accounted for using the balance sheet liability method. Deferred tax
liabilities are generally recognised for all taxable temporary differences and
deferred tax assets are recognised to the extent that it is probable that
taxable profits will be available against which deductible temporary differences
can be utilised. Such assets and liabilities are not recognised if the
temporary difference arises from the original recognition of other assets and
liabilities in a transaction that affects neither the tax profit nor the
accounting profit.
The carrying amount of deferred tax assets is reviewed at each balance sheet
date and reduced to the extent that it is no longer probable that sufficient
taxable profits will be available to allow all or part of the asset to be
recovered.
Deferred tax is calculated at the tax rates that are expected to apply in the
period when the liability is settled or the asset is realised. Deferred tax is
charged or credited in the income statement, except when it relates to items
charged or credited directly to equity, in which case the deferred tax is also
dealt with in equity.
Financial instruments
Financial assets and financial liabilities are recognised on the balance sheet
when the Company becomes a party to the contractual provisions of the
instrument.
Non-current intangible assets
Non-current intangible assets are shown at cost less any provisions made in
respect of impairment.
Asset impairments
Non-current intangible assets are reviewed for impairments if events or changes
in circumstances indicate that the carrying amount may not be recoverable. When
a review is conducted, the recoverable amount is assessed by reference to the
net present value of expected future cash flows of the relevant income
generating unit or disposal value, if higher.
If an asset is impaired, a provision is made to reduce the carrying amount to
its estimated recoverable amount.
Non-current asset investments
Loan investments are shown at cost less provision for any permanent diminution
in value. Loan investments are recognised as an asset when sums are advanced.
Property, plant and equipment
Office equipment and furniture are shown at cost less accumulated depreciation
and any recognised impairment loss. Depreciation is charged so as to write off
the cost of assets over their estimated useful lives, using the straight line
method on the following basis:
Office furniture and fittings 33% - 50%
Computer and office equipment 33% - 100%
Cash and cash equivalents
Cash and cash equivalents comprise cash held at bank and on short term deposits.
Financial liabilities and equity
Financial liabilities and equity instruments are classified according to the
substance of the contractual arrangement entered into. An equity instrument is
any contract that evidences a residual interest in the assets of the Company
after deducting all of its liabilities.
Trade payables
Trade payables are not interest bearing and are stated at their nominal value.
Trade receivables
Trade receivables do not carry any interest and are stated at their nominal
value as reduced by appropriate allowances for estimated irrecoverable amounts.
Equity instruments
Equity instruments issued by the Company are recorded at the proceeds received
except where those proceeds appear to be less than the fair value of the equity
instruments issued, in which case the equity instruments are recorded at fair
value. The difference between the proceeds received and the fair value is
reflected in the share based payments reserve.
The costs of issuing new equity are charged against the share premium account.
Operating Leases
Rental costs under operating leases are changed to the income statement on a
straight line basis over the term of the lease. Where an incentive to sign the
lease has been taken the incentive is spread on a straight line basis over the
lease term.
Pension costs
The Company makes defined contributions to the independent pension scheme of its
employees.
Share based payments
The Group has applied the requirements of IFRS 2 Share-based Payments.
The Group issues equity-settled based payments to directors, staff, and certain
professional advisors of the Group. Equity-settled share-based payments are
measured at fair value at the date of grant. The fair value determined at the
grant date of the equity-settled share-based payment is expensed on a
straight-line basis over the vesting period, based on the Group's estimate of
shares that will eventually vest.
Fair value is measured using a Black-Scholes model. The expected life used in
the model has been adjusted, based on management's best estimate, for the
effects of non-transferability, exercise restrictions, and behavioural
considerations.
3. Earnings / (loss) per share - including share of associates results
Earnings / (loss) per share has been calculated by dividing the profit / (loss)
for the period after taxation including share of associates profits / (losses)
of �2,840,147 (2006: loss �103,069) attributable to the equity holders of the
parent company of �1,538,468 (2006: loss �503,656) by the weighted average
number of shares in issue at the period end of 29,034,652 (2006: 27,316,847).
Diluted earnings / (loss) per share has been calculated using the weighted
average number of shares in issue at the period end, diluted for the effect of
share options in existence at the period end of 895,000 (2006: 3,325,000).
Loss per share - excluding share of associates results
Loss per share has been calculated by dividing the loss for the period after
taxation excluding share of associates profits / (losses) and deferred tax
relating thereto of �2,244,329 (2006: loss �103,069) attributable to the equity
holders of the parent company of �705,861 (2006: �400,587) by the weighted
average number of shares in issue at the year end of 29,034,652 (2006:
27,316,847).
Diluted loss per share has been calculated using the weighted average number of
shares in issue at the year end, diluted for the effect of share options in
existence at the period end of 895,000 (2006: 3,325,000).
4. Investments in Associated Undertakings
Six months period Six months period Year ended 31
ended 30 September ended 30 September March 2007
2007 2006
(Unaudited) (Unaudited) (Audited)
� � �
Cost
Balance brought forward 10,353,674 10,077,385 10,077,385
Share of associate undertaking 2,840,147 (103,069) 276,289
results
Balance carried forward 13,193,821 9,974,316 10,353,674
5. Loans and receivables
Six months period Six months period Year ended 31
ended 30 September ended 30 September March 2007
2007 2006
(Unaudited) (Unaudited) (Audited)
� � �
Balance brought forward 1,812,274 - -
Additions 1,450,964 535,404 1,812,274
Loss on translation (194,177) - -
Balance carried forward 3,069,061 535,404 1,812,274
On 12 April 2006, the Company announced that it had negotiated to subscribe for
up to US$5million in a three-year Loan Note in Atlas Consolidated Mining and
Development Corporation ('ACMDC'), secured over ACMDC's share of the Berong
nickel project. The Note bears interest at the rate of 10% per annum and is
repayable out of ACMDC's share of the Berong nickel project cash flow or is
convertible into ACMDC shares (at the election of the Company). The total
amount advanced at 30 September 2007 including accrued interest was US$2,827,154
(2006: US$1,002,443).
The Company entered into an agreement to make a loan facility available to
Brooks Nickel Ventures Inc. (Brooks) of up to US$3 million, secured over Brooks'
share of the Ipilan nickel project. The loan bears interest at 10% per annum
and is repayable out of Brooks' share of the Ipilan nickel project cash flow.
The total amount advanced at 30 September 2007 including accrued interest was
US$2,592,261 (2006: Nil). In October 2007 the facility was increased to US$5
million and as at the date of this report a further US$1.4 million had been
advanced to Brooks.
Under the joint venture agreement between the company, Brooks Nickel Ventures
Inc (Brooks) and Celestial Nickel Mining Exploration Corporation (CNMEC) the
Company has an option to take a 40% holding in CNMEC for a payment of US$8
million. The Company has advanced US$900,000 to CNMEC against this option
amount.
6. Non-current liabilities
Six months period Six months period Year ended
ended ended
30 September 2007 30 September 2006 31 March 2007
(Unaudited) (Unaudited) (Audited)
� � �
Deferred income tax liabilities
Deferred tax arising in respect of:
Profits arising in associated
& subsidiary companies 1,308,242 - -
Losses in Toledo Mining
Corporation Plc (688,272) - -
Accelerated depreciation (24,152) - -
595,818 - -
7. Called up share capital
Six months period Six months period Year ended 31
ended 30 September ended 30 September March 2007
2007 2006
(Unaudited) (Unaudited) (Audited)
Authorised
Ordinary shares of 5p each
Number 40,000,000 40,000,000 40,000,000
Nominal value 2,000,000 2,000,000 2,000,000
Allotted and fully paid
Ordinary shares of 5p each
Number 29,188,333 27,548,333 28,588,333
Nominal value 1,459,417 1,377,417 1,429,417
Following the exercise of shares and warrants during the period, the company
issued 600,000 shares for a total consideration of �875,000.
8. Associate Undertakings
The Company has equity holdings in the following associate undertakings:
Ulugan Nickeline Nickel
Resources Resources Laterite
TMM Management Holdings Inc Ulugan Holdings Resources Berong Ipilan
Inc Nickel Corp Inc Inc Nickel Corp Nickel Corp
Direct 40% 30% 40% 40% 20% 21.3% 40%
Indirect - - 18% 18% - 34.8% 12%
Total 40% 30% 58% 58% 20% 56.1% 52%
Summarised results of the associate undertakings as translated into sterling are
as follows:
Period ended 30 September 2007
Berong Nickel Ipilan Nickel Remaining Total
Corporation Corporation Associates
� � � �
Revenue 12,275,951 - 16,305 12,292,256
Profit / (loss) for the 5,090,592 (28,960) (1,377) 5,060,255
period
Total assets 10,840,086 2,692,702 339,110 13,871,898
Total liabilities 3,592,707 385,111 53,021 4,030,839
Year ended 31 March 2007
Berong Nickel Ipilan Nickel Remaining Total
Corporation Corporation Associates
� � � �
Revenue 2,910,323 - 13,926 2,924,249
Profit / (loss) for the 566,039 (59,829) (15,517) 490,693
year
Total assets 9,797,642 1,518,015 227,332 11,542,989
Total liabilities 7,692,443 140,901 68,571 7,901,915
Period ended 30 September 2006
Berong Nickel Ipilan Nickel Remaining Total
Corporation Corporation Associates
� � � �
Revenue - - 10,203 10,203
Loss for the period (134,886) (43,871) (10,234) (188,991)
Total assets 4,177,471 691,723 329,035 5,198,229
Total liabilities 281,658 74,875 234,472 591,005
9. Taxation
Six months period Six months period Year ended
ended ended 31 March 2007
30 September 2007 30 September 2006
(Unaudited) (Unaudited) (Audited)
� � �
Current tax charge - - -
Deferred tax charge (595,818) - -
________ _ _
(595,818) - -
Deferred tax arising in respect of: :
of:
Profits arising in associated and
& subsidiary companies 1,308,242 - -
Losses in Toledo Mining
Corporation Plc (688,272) - -
Accelerated depreciation (24,152) _ _
595,818 - -
Deferred tax has been provided for at marginal rates up to a maximum of 30%.
10. Post balance sheet events
Following the exercise of options the Company issued 350,000 ordinary shares for
a total consideration of �525,000.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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