RNS Number:9965P
Central African Mining&Exploration
22 September 2003
Central African Mining Exploration Company plc
("CAMEC" or "the Company")
Central African Mining and Exploration Company Plc, the AIM listed resource
company, announces its preliminary results for the period ended 31 March 2003.
Overview:
* Pre and post tax profit of #606,357 (2002: loss #185,983)
* Is a resource based mining, exploration, investment and trading company
in Southern and Central Africa
* Successfully established a strong business reputation and is well
positioned to take advantage of the improving situation throughout the
region and the new international focus on Africa
* Acquired a 25% interest in AIM listed Southern African Resources Plc,
holders of a major Platinum Group Metal (PGM) focused project in South
Africa, with over 56 million oz of inferred resource
* Operational presence established in Lubumbashi and Katanga Province of
the Democratic Republic of the Congo, where potentially lucrative
opportunities have been identified in the copper and cobalt markets
* Contract signed with Namibia's foremost copper producer, Ongopolo Mining
and Processing Ltd to supply 12,000 tons of copper concentrate for July 03
to July 04
* Has an operating tantalum mine and trading operation in Namibia
* Low key presence maintained in Zimbabwe where CAMEC has significant
tantalum deposits. Resumption of activity expected in conjunction with
political amelioration
* Signed a long-term contract with Pacific Ores Metals & Chemicals of Hong
Kong to supply it with tantalite until December 2006
* Successfully raised #1.15 million from institutions including RAB Capital
and private investors interested in the resource sector
* Evolving into a junior African Mining Finance House with significant
potential to create shareholder value
CHAIRMAN'S STATEMENT
CAMEC is a fully integrated exploration, mining, trading and investment company
focused on Central and Southern Africa.
These are our first set of full year results since the Company floated on AIM in
October 2002. I am pleased to announce a pre and post tax profit of #606,357 for
the 12-month period ended 31 March 2003. The profit comprises of a #1,045,000
gain from the sale of the Company's platinum interest to Southern African
Resources plc, less operational losses, which include pre-production costs in
excess of #200,000 in relation to the Albaca Tantalite mine in Namibia.
We introduced CAMEC to the AIM market in October 2002 with a dual objective.
Firstly, to become a significant low cost African producer and exporter of
tantalum and related minerals, and secondly to become a source of good value
resource projects in the region. We have made significant progress in the
attainment of both these objectives.
CAMEC is seeking to build a substantial resource based mining, exploration,
trading and investment company. We have strong connections in the region and the
ability to locate projects, which will greatly enhance our position. The Board
believes that a confluence of economic and political trends provides the unique
opportunity for CAMEC to grow substantially and thereby create significant
shareholder value.
To this end, CAMEC's strategy is to:
* Identify resource based opportunities in the region
* Evaluate these projects to determine how they are best developed
* Facilitate development by providing management expertise
* Arrange equity and project financing
* Actively manage the asset portfolio to maximise return on capital
Over the past year CAMEC has laid the foundations to implement this strategy
through:
* Building an organisational structure
* Establishing an operational presence
* Building a portfolio of operating, development and exploration assets
* Facilitating its management and financing
In so doing, CAMEC is evolving into a junior African Mining Finance House with
significant potential to create shareholder value.
Operational Review
There has been significant activity in the South African mining industry in the
last 12 months, not least within the platinum sector. We have been able to take
advantage of this by acquiring a 25% interest in Southern African Resources Plc
in exchange for our share of Biz Africa 1673 (PTY) Ltd, which holds the
Exclusive Prospecting rights on the 4600 Hectare Leeuwkop property on the
western limb of the Bushveld complex in South Africa and is contiguous to
properties owned by Lonmin Plc.
Leading mining industry consultants Snowden Group completed a platinum resource
evaluation/mining study and a preliminary financial evaluation of the property.
It confirmed Leeuwkop as a 'stand alone' project with potential to produce over
300,000 oz PGM per annum from 240,000 tonnes ore processed per month over a 25
year period.
The study highlighted a total in situ inferred PGM resource of 56,206,756 oz
divided into 37,451,334 oz for the UG2 Reef and 18,755,422 oz on the Merensky
Reef. The inferred resources are further differentiated to give a total inferred
resource for the southern area of Leeuwkop of 25,112,587 oz being 16,459,445 oz
(UG2 Reef) and 8,653,142 oz (Merensky Reef) respectively. Snowden has now been
commissioned to oversee a confirmatory drilling programme to take the project to
bankable feasibility status. We believe that the project has great promise and
will contribute considerably in generating shareholder value in the future.
Following the recent fund raising by Southern African Resources Plc in order to
finance the drilling programme, CAMEC now has a 17.65% shareholding in the
company.
As noted previously, CAMEC has made operational advances elsewhere, particularly
in the Democratic Republic of the Congo (D.R.C.). In July we supplied 1,200
tonnes dry metric weight (d.m.t) of over 30% copper concentrate to Namibia's
foremost copper producer, Ongopolo Mining and Processing Ltd (O.M.P.L) and as a
result, we recently signed a contract to supply it with a minimum of 12,000
tonnes d.m.t of copper concentrate during the year commencing 1 July 2003. We
are also in discussions with it concerning joint venture proposals in the D.R.C
in the mining and processing fields.
Over the past five months CAMEC has also supplied on contract over 5,000 tonnes
of copper concentrate from the D.R.C to Zambian based Mopani Copper Mines plc
and discussions concerning the extension of this supply contract are now
underway.
There are significant opportunities in the copper and cobalt markets in Central
Africa particularly in the D.R.C. Given our operational presence and
organisational structure in the region, CAMEC is we feel, well positioned to
expand in these areas. We also see opportunities in gold, as well as in other
minerals and metals.
With regard to tantalum, the Company has an operating mine and buying office in
Namibia. In Zimbabwe, we are maintaining a presence in the expectation of an
amelioration of the political situation in the not too distant future. We now
have a significant presence in Mozambique, particularly in the tantalum rich
Zambezia province.
For the period ended 31 March 2003, we exported approximately 9 tonnes of TA
205, mainly to Pacific Ores of Hong Kong with whom we have a long term supply
arrangement. Since the year-end, exports have increased significantly with
current levels running at approximately 5 tonnes per month.
Outlook
We have just raised #1,148,499 through the placing of 38,283,333 ordinary shares
of 0.1p each at 3p per share to institutional investors including RAB Capital
and private investors. The proceeds of the placing will be used primarily for
developing operations in the Democratic Republic of the Congo (D.R.C.) and for
working capital purposes.
This is good news for us as we continue to gather support from key institutions
and private investors who understand the sector and recognise our potential. We
have established a solid base in Central and Southern Africa and believe we are
now well positioned to take advantage of the amelioration of the political and
economic situation and the consequent new international focus on the region.
We have identified significant opportunities in the region particularly in the
D.R.C's copper and cobalt markets. We have already secured contracts supplying
copper concentrate to Ongopolo Mining and Processing Ltd of Nambia and Mopani
Copper Mines Plc in Zambia, and we're currently negotiating to acquire several
significant deposits, which include copper and cobalt.
We have worked hard at building strong foundations through the establishment of
an organisational structure and operational presence in the region and as a
result we look forward to the future with confidence. Finally, I'd like to take
this opportunity to thank all those involved in the Company for their hard work
and enthusiasm over the last year.
Phil Edmonds
Chairman
CONSOLIDATED PROFIT AND LOSS ACCOUNT
for the year ended 31 March 2003
Year 9 months
ended ended
31 March 31 March
2003 2002
# #
TURNOVER 199,100 35,016
Cost of sales (151,703) (27,831)
--------------- --------------
GROSS PROFIT 47,397 7,185
Net operating expenses (478,798) (195,216)
--------------- --------------
OPERATING LOSS (431,401) (188,031)
OTHER INCOME
Exceptional profit on disposal of 1,045,000 -
investment
Share of losses from associated (6,193) -
undertakings
Interest receivable 2,157 2,048
Interest payable and similar charges (3,206) -
--------------- --------------
PROFIT/(LOSS) ON ORDINARY ACTIVITIES
BEFORE TAXATION 606,357 (185,983)
Taxation - -
--------------- --------------
PROFIT/(LOSS) ON ORDINARY ACTIVITIES
AFTER TAXATION 606,357 (185,983)
=============== ==============
EARNINGS/(LOSS) PER SHARE
Basic earnings/(loss) per share 0.193p (0.087p)
Diluted earnings/(loss) per share 0.188p (0.087p)
=============== ==============
The operating loss for the year arises from the group's continuing operations.
CONSOLIDATED BALANCE SHEET
As at 31 March 2003
2003 2002
# #
FIXED ASSETS
Intangible assets 2,616,862 15,000
Tangible assets 225,698 140,278
Investments 1,067,762 -
---------------- --------------
3,910,322 155,278
---------------- --------------
CURRENT ASSETS
Stocks 51,482 2,665
Debtors 131,440 196,632
Cash at bank and in hand 248,125 197,443
---------------- --------------
431,047 396,740
CREDITORS: Amounts falling due within (123,295) (97,590)
one year
---------------- --------------
NET CURRENT ASSETS 307,752 299,150
---------------- --------------
TOTAL ASSETS LESS CURRENT 4,218,074 454,428
LIABILITIES ================ ==============
CAPITAL AND RESERVES
Called up share capital 338,069 263,069
Share premium account 3,553,170 576,342
Merger reserve (199,000) (199,000)
Profit and loss account 525,835 (185,983)
---------------- --------------
SHAREHOLDERS' FUNDS 4,218,074 454,428
================ ==============
CONSOLIDATED CASH FLOW STATEMENT
for the year ended 31 March 2003
Year ended 31 9 months ended
March 2003 31 March 2002
# #
Cash outflow from operating (239,223) (322,392)
activities
Returns on investments and servicing (1,049) 2,048
of finance
Capital expenditure and financial (242,527) (157,001)
investment
--------------- ---------------
CASH OUTFLOW BEFORE FINANCING (482,799) (477,345)
Financing 531,920 674,788
--------------- ---------------
INCREASE IN CASH IN THE PERIOD 49,121 197,443
=============== ===============
RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS
Year ended 31 9 months ended
March 2003 31 March 2002
# #
Increase in cash in the 49,121 197,443
period
Change in debt 19,908 (34,377)
--------------- ---------------
MOVEMENT IN NET FUNDS IN THE 69,029 163,066
YEAR
NET FUNDS AT 1 APRIL 2002 163,066 -
--------------- ---------------
NET FUNDS AT 31 MARCH 2003 20c 232,095 163,066
=============== ===============
Notes:
1. Statutory accounts
The financial information presented does not constitute statutory accounts
as defined in Section 240 of the Companies Act 1985. The comparitive results
have been extracted from the audited accounts of the Company for the nine
months ended 31 March 2002.
2. Earnings per ordinary share
Basic earnings/(loss) per share is calculated by reference to the group
profit after taxation of #606,357 (2002 loss - #(185,393)) and the weighted
average number of shares in issue during the year of 314,027,873 (2002 -
214,801,901).
Diluted earnings per share is calculated by reference to the group profit
after taxation of #606,357 (2002 loss - #(185,393)) and on a weighted
average number of shares of 322,001,206 (2002 - 214,801,901).
This information is provided by RNS
The company news service from the London Stock Exchange
END
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