Quarterly Report
30 Janvier 2007 - 12:50PM
UK Regulatory
RNS Number:3626Q
GVM Metals Ltd
30 January 2007
GVM METALS LIMITED
QUARTERLY REPORT
GVM Metals Limited ("GVM" or "the Company") is pleased to announce its
operational report for the 2nd quarter ended 31 December 2006. A full copy of
this report, as released today on the ASX, is available at the Company's
website, www.gvm.com.au.
Highlights
*Unaudited Group profit before interest and tax of A$2 million for the
first six months of the year.
*Cash at the end of the quarter was A$10.7 million.
*Nimag (Pty) Ltd's nickel magnesium alloy business continued to operate
well ahead of budget while the smaller FeSiMag and Fibre businesses reported
losses for the quarter of A$265,000.
*12,200,000 GVM shares to raise GBP2.44 million (A$6.1 million) placed
with Asia Energy Plc. This was completed on 2 January 2007. As a result,
Steve Bywater and Graham Taggart (Asia Energy's CEO and CFO) have been
invited to join the Board of GVM Metals Ltd as non-executive Directors. The
funds raised will be utilised to further develop GVM's expanding coal
interests in South Africa.
*GVM executed a binding Sale of Shares and Claims Agreement to acquire
100% of Baobab Mining and Exploration (Pty) Ltd which owns the remaining 50%
of the Baobab J.V. coal project. The remaining 50% is currently held by
Motjoli Resources, which GVM has previously agreed to acquire.
*Granting of Section 11 approval in terms of the South African Mineral and
Petroleum Resources Development Bill satisfying the last remaining condition
to acquire the Limpopo Coal project. As a result, 20,812,500 GVM shares were
issued to the Limpopo Coal vendors in November 2006.
*GVM exercised its call option to acquire the outstanding 26% of Nimag
(Pty) Ltd by the allotment of 4,620,557 GVM shares and a cash payment of
AU$75,000.
Discussion of Results
Nimag Group of Companies (100%)
The Nimag Group's unaudited profit before interest and tax for the first six
months of the 2007 financial year is ZAR19 million (A$3.4 million). The nickel
magnesium business continued to outperform its budget, whilst the smaller
FeSiMag and Fibres businesses reported a combined loss of A$265,000 for the
quarter opposed to profits recorded in the first quarter of the financial year.
Management expect the FeSiMag and Fibres businesses to return to profitability
in the second half of the financial year.
Operational cash flow generated during the quarter of A$1.6 million combined
with favourable management of working capital resulted in an A$3.2 million
improvement in the cash position at the end of December. During the second
quarter, cash of A$1.1 million was used in the repayment of long term loans.
Continued exchange rate levels and high nickel prices signify a positive outlook
for the second half of the financial year.
Coal Activities
Holfontein Coal Project (49% now - 100% on completion of Motjoli acquisition)
The in-fill Holfontein drilling programme continued during the December quarter
and the programme is expected to be completed in the next quarter of the current
financial year. Drilling result analysis identifies metallurgical and thermal
coal typical to the region. Geo-hydrological studies commenced in November 2006
and are expected to be completed in the near term. The bankable feasibility
study is expected to be completed shortly thereafter and hopefully no later than
the end of March 2007.
Baobab Coal Project (100% on completion of acquisitions)
GVM executed an agreement with Petmin Ltd to acquire Petmin's 50% interest in
the Baobab coal project. The acquisition will take the form of GVM acquiring
100% of Baobab Mining & Exploration (Pty) Ltd, a Petmin subsidiary company. The
purchase consideration is GBP2.5 million (A$6 million) cash and the acquisition
is subject the following conditions precedent:
*obtaining GVM shareholder approval at a general meeting to be convened
and held on or before the 31 March 2007;
*requisite South African Reserve Bank approval;
*necessary approval in terms of Section 11 of the Mineral and Petroleum
Resources Development Bill of South Africa (by 30 April 2007); and
*ASX approval if so required.
Limpopo Coal Project (74%)
During December, GVM secured Section 11 approval in terms of the Mineral and
Petroleum Resources Development Bill of South Africa, satisfying the last of the
conditions precedent of the Limpopo Coal transaction. As a result, GVM issued
the required share consideration and the acquisition was settled and completed
at the end of November 2006.
Additional exploration of the Limpopo Coal area was commissioned during the
quarter, together with the collection of geo-scientific data. The data collected
will be captured and used to generate a geological model. The model will focus
the prospecting programme and identify potential drilling targets.
Preliminary discussions with various infra-structure participants are underway
to ascertain capacity for possible coal exports. Consultations with surface
right owners commenced in 2006 and will continue in 2007 in conjunction with the
Aeromag and geological surveys.
Kalbara Tenement (GVM 21.31%)
Diamond hole GVD145 was completed on M27/181 during the December 2006 quarter to
follow up on anomalous and interpreted mineralised trends resulting from the
previous campaign of aircore drilling.
GVD 145 was drilled at the southern end of the Kalbara area and intersected a
wide zone of moderate carbonate-sericite-pyrite-albite-fuschite alteration and
quartz-carbonate veining, with restricted zones of greater intensity. Samples
have been submitted for analysis, results are pending.
Kanowna West Tenements (GVM 23.68%)
No exploration work was conducted on P27/1158.
For more information contact:
Simon Farrell, Managing Director - GVM - +61 417 985 383 or +61 8 9322 6776
Leesa Peters / Abi Singleton - Conduit PR - +44(0) 20 7429 6606
Olly Cairns / Romil Patel - Corporate Synergy Plc - +44(0) 20 7448 4400
www.gvm.com.au
Appendix 5B
Mining exploration entity quarterly report
Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001.
Name of entity
GVM Metals Limited
ABN Quarter ended ("current quarter")
------------------- ------------------
98 008 905 388 31 December 2006
------------------- ------------------
Consolidated statement of cash flows
----------- ------------
Cash flows related to operating activities Current quarter Year to date
$A'000 (6 months)
$A'000
----------- ------------
------------
1.1 Receipts from product sales and related 10,317 23,005
debtors
1.2 Payments for (a) exploration and (151) (205)
evaluation
(b) development (9,412) (20,937)
(c) production (1,649) (3,100)
(d) administration
1.3 Dividends received
1.4 Interest and other items of a similar 82 157
nature received
1.5 Interest and other costs of finance paid (136) (268)
1.6 Income taxes paid (20) (297)
1.7 Other
----------- ------------
Net Operating Cash Flows (969) (1,647)
------ ------------------------ ----------- ------------
Cash flows related to investing
activities
1.8 Payment for purchases of: (a)prospects (53) (89)
(b)equity investments
(c) other fixed assets
1.9 Proceeds from sale of: (a)prospects 29 29
(b)equity investments
(c)other fixed assets
1.10 Loans to other entities
1.11 Loans repaid by other entities 303 349
1.12 Other (provide details if material)
----------- ------------
Net investing cash flows 279 289
----------- ------------
1.13 Total operating and investing cash flows (690) (1,358)
------ (carried forward) ----------- ------------
------------------------
------------ ------------
Cash flows related to financing activities
1.14 Proceeds from issues of shares, options, 6,121 13,614
etc.(net) -see note below
1.15 Proceeds from sale of forfeited shares
1.16 Proceeds from borrowings
1.17 Repayment of borrowings (1,111) (1,339)
1.18 Dividends paid (260) (260)
1.19 Other (Exchange rate related movements in
foreign borrowings and reserves) ------------ ------------
Net financing cash flows 4,750 12,015
------ ---------------------- ------------ ------------
Net increase (decrease) in cash held 4,060 10,657
1.20 Cash at beginning of quarter/year to date 6,642 50
1.21 Exchange rate adjustments to item 1.20 3 (2)
------------ ------------
1.22 Cash at end of quarter 10,705 10,705
------ ---------------------- ------------ ------------
Note: The 12,200,000 issued to Asia Energy Plc were issued prior to the 31st of
December 2006 but not allotted until 2nd of January 2007, increasing the number
of issued GVM Metals Ltd shares to 93,559,328 in January 2007.
Payments to directors of the entity and associates of the directors
Payments to related entities of the entity and associates of the related
entities
------------
Current
quarter
$A'000
------------
------------
1.23 Aggregate amount of payments to the parties included in 186
item 1.2 ------------
1.24 Aggregate amount of loans to the parties included in item -
------ 1.10 ------------
-------------------------------
1.25 Explanation necessary for an understanding of the transactions
------------------------------------------
------------------------------------------
Non-cash financing and investing activities
2.1 Details of financing and investing transactions which have had a material
effect on consolidated assets and liabilities but did not involve cash
flows
-------------------------------------------
-------------------------------------------
2.2 Details of outlays made by other entities to establish or increase their
share in projects in which the reporting entity has an interest
-------------------------------------------
-------------------------------------------
Financing facilities available
Add notes as necessary for an understanding of the position.
------------- ------------
Amount available Amount used
$A'000 $A'000
------------- ------------
3.1 Loan facilities 3,662 1,844
------------- ------------
3.2 Credit standby arrangements
----- ---------------------- ------------- ------------
Estimated cash outflows for next quarter
$A'000
-----------------
4.1 Exploration and evaluation (900)
-----------------
4.2 Development -
----- --------------------------- -----------------
Total (900)
----- --------------------------- -----------------
Reconciliation of cash
------------------------- ------------ -------------
Reconciliation of cash at the end of the quarter Current Previous
(as shown in the consolidated statement of cash quarter quarter
flows) to the related items in the accounts is as
follows.
$A'000 $A'000
------------------------- ------------ -------------
-------------
5.1 Cash on hand and at bank 10,705 7,698
------------ -------------
5.2 Deposits at call - -
------------ -------------
5.3 Bank overdraft - (1,056)
------------ -------------
5.4 Other (provide details) - -
----- ---------------------- ------------ -------------
Total: cash at end of quarter (item 1.22) 10,705 6,642
----- ---------------------- ------------ -------------
Changes in interests in mining tenements
------------- --------- -------- -------
Tenement reference Nature of Interest Interest
interest at at end
beginning of
of quarter
quarter
(note (2))
------------- --------- -------- -------
6.1 Interests in
mining ------------- --------- -------- -------
tenements
relinquished,
reduced or
lapsed
Tenement reference Nature of Interest Interest
interest at at end
beginning of
of quarter
quarter
(note (2))
------------- --------- -------- -------
6.2 Interests in Acquired Limpopo Coal (Pty) 0% 74%
mining Ltd comprising the farms --------- -------- -------
tenements Overvlakte 125MS, Bergen Op
acquired or Zoom 124MS, Simple 155MS
increased and Voorspoed 836MS.
-------------
Issued and quoted securities at end of current quarter
Description includes rate of interest and any redemption or conversion rights
together with prices and dates.
Total number Number quoted Issue price Amount paid
-------------- ---------- ---------- per security up per
(see note 3) security (see
(cents) note 3)
---------- (cents)
------------
------------
7.1 Preference
------ +securities ---------- ---------- ---------- ------------
(description)
----------
7.2 Changes during
quarter
(a) Increases
through issues
(b) Decreases
------ through returns ---------- ---------- ---------- ------------
of capital,
buy-backs,
redemptions
----------
7.3 +Ordinary 81,359,328 81,359,328
securities ---------- ---------- ---------- ------------
7.4 Changes during 25,433,057 25,433,057
quarter
(a) Increases
through issues
(b) Decreases
------ through returns ---------- ---------- ---------- ------------
of capital,
buy-backs
----------
7.5 +Convertible debt
securities ---------- ---------- ---------- ------------
(description)
7.6 Changes during
quarter
(a) Increases
through issues
(b) Decreases
------ through ---------- ---------- ---------- ------------
securities
matured,
converted
----------
7.7 Options 9,000,000 - Exercise Expiry date
(description and price
conversion
factor)
See Note 6 See Note 6
---------- ---------- ---------- ------------
7.8 Issued during 1,000,000 Exercise Expiry date
quarter price
See Note 6 See Note 6
---------- ---------- ---------- ------------
7.9 Exercised during Nil Nil
quarter ---------- ---------- ---------- ------------
7.10 Expired during Nil Nil
------ quarter ---------- ---------- ---------- ------------
----------
7.11 Debentures
(totals only)
------ ---------- ---------- ----------
7.12 Unsecured notes
(totals only) ---------- ----------
Compliance statement
1 This statement has been prepared under accounting policies which comply with
accounting standards as defined in the Corporations Act or other standards
acceptable to ASX (see note 4).
2 This statement does give a true and fair view of the matters disclosed.
Sign here: ............................................... Date: 29 January 2007
(Director)
Print name: Simon Farrell
Notes
1 The quarterly report provides a basis for informing the market how the
entity's activities have been financed for the past quarter and the effect on
its cash position. An entity wanting to disclose additional information is
encouraged to do so, in a note or notes attached to this report.
2 The "Nature of interest" (items 6.1 and 6.2) includes options in respect of
interests in mining tenements acquired, exercised or lapsed during the reporting
period. If the entity is involved in a joint venture agreement and there are
conditions precedent which will change its percentage interest in a mining
tenement, it should disclose the change of percentage interest and conditions
precedent in the list required for items 6.1 and 6.2.
3 Issued and quoted securities: The issue price and amount paid up is not
required in items 7.1 and 7.3 for fully paid securities.
4 The definitions in, and provisions of, AASB 1022: Accounting for Extractive
Industries and AASB 1026: Statement of Cash Flows apply to this report.
5 Accounting Standards ASX will accept, for example, the use of International
Accounting Standards for foreign entities. If the standards used do not address
a topic, the Australian standard on that topic (if any) must be complied with.
6 Issued and Quoted Securities as at 31 December 2006:
Number Number Exercise Expiry Date Lapsed Since End of
Issued Quoted Price quarter
9,000,000 - 50.0 30 September -
2011
The information in this announcement as it related to geology, geochemistry and
geophysics, has been prepared and reviewed by Richard Linnell who is a qualified
person as described in Appendix 5A to the ASX Listing Rules and Part two of the
AIM Guidance Notes for Mining and Oil and Gas Companies.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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