Final Results
04 Septembre 2006 - 9:00AM
UK Regulatory
RNS Number:3677I
Neptune Minerals Plc
04 September 2006
FOR IMMEDIATE RELEASE
NEPTUNE MINERALS Plc
PRELIMINARY RESULTS
For the year ended 30 June 2006
Neptune Minerals Plc ("Neptune" or "the Company"), the AIM listed explorer of
Seafloor Massive Sulphides ("SMS") deposits, is pleased to announce its
preliminary results for the year ended 30 June 2006.
Highlights
* The world's first commercial exploration drilling program for SMS
("Kermadec 05") was concluded in December 2005 on time and within budget.
* A composite sample collected during Kermadec 05 had an average contained
metal content of 11.2g/t gold, 122 g/t silver, 8.1% copper, 0.5% lead and 5%
zinc.
* Results suggest that SMS material can be treated by standard
metallurgical processes; that SMS are no more difficult to process than any
land-based sulphide ore and are potentially easier to treat, due to their
larger grain size.
* Subsequent to completion of Kermadec 05, Neptune was granted two
additional exclusive prospecting licences, covering approximately 47,000 sq
km within New Zealand's controlled waters. As a result Neptune has exclusive
commercial access to all known SMS prospective areas within the New Zealand
Exclusive Economic Zone.
Dr Simon McDonald, Neptune's Chief Executive Officer, said:
"We are pleased with the progress that Neptune has made over the last year and
were encouraged by our first exploration program. We are finalising the details
of our next exploration phase (Kermadec 06) which we hope will be underway by
late 2006."
ENDS
For further enquiries please contact:
Cardew Group T: +44 (0)20 7930 0777
Nadja Vetter / Sofia Rehman
Corporate Synergy Plc T: +44 (0)20 7448 4400
Oliver Cairns
The Neptune Minerals website is www.neptuneminerals.com
Notes to editors
Neptune Minerals Plc is a leading explorer and developer of Seafloor Massive
Sulphides (SMS), a new class of high-grade base and precious metal deposit.
Listed on the AIM market in London, ticker symbol, NPM.L, Neptune holds 3
prospecting licences in New Zealand controlled waters. Following its listing in
October 2005, the Company completed the "Kermadec 05" exploration program
focusing on coring and seafloor mapping. Neptune is actively securing
exploration rights over other known SMS deposits in the south-western Pacific
region.
CHAIRMAN'S REVIEW
I have pleasure in presenting this inaugural Annual Report for Neptune Minerals.
Neptune began as a small privately funded company. Having had a long-term
interest in the potential for seafloor minerals going back many years, I chose
to be a participant in the pre-Admission funding. Accordingly, I have a strong
commitment and interest in the future of the company.
The past year has been an exciting period of growth for the Company. Work began
in earnest immediately post Admission and Neptune undertook its first
exploration activities at sea in November and December 2005. That work,
completed on time and below budget, represented the world's first commercial
exploration program undertaken for SMS deposits.
The Board remains convinced that underwater mining of SMS deposits represents
the next frontier in minerals production. Current sources of land-based minerals
are being depleted and mining companies need new sources to meet production
demands. Developing countries, particularly China and India, continue to grow
their economies, contributing to a continuing demand for metals.
Marine technology required to exploit SMS deposits commercially is rapidly being
developed through existing technological advances in the offshore oil and gas,
marine diamond mining, trenching and cable laying sectors.
Although it has been an exciting first year for Neptune, the Company has also
been presented with challenges. Among these are the sharp increased in the price
of oil and the resultant global upturn in offshore oil and gas exploration. The
direct impact of these factors upon Neptune's operations has been the dramatic
decrease in the availability - and the equally dramatic increase in the price -
of shipping and ancillary offshore equipment.
Nevertheless, Neptune has an active and exciting exploration program designed
for 2006/2007 and has sufficient cash reserves to undertake this.
Our understanding and care of the marine environment, safety of personnel at sea
and corporate governance are very important issues for the directors and
management of Neptune. Being an offshore explorer, considerable efforts are also
directed to understanding present and emerging legislation relating to the law
of the sea and stakeholders in the various offshore jurisdictions.
I extend my thanks to my co-directors, the management and their staff for their
contribution to Neptune's achievements to date. We look forward to progressing
the Company to its next stage of development during the coming year.
Peter M Vanderspuy
Chairman
CHIEF EXECUTIVE'S REPORT
Company Strategy
Neptune's business strategy is to deliver to its shareholders a focused, active
and financially accountable SMS exploration company. Neptune will strive to be
at the forefront of identifying and defining SMS deposits and developing the
technologies required to commercialise those deposits.
To fulfill these ambitions, Neptune is undertaking the following key activities:
* An active exploration program
* Ongoing new ventures acquisition
* Locating partnering opportunities
Delivery of these activities will be met through maintaining and developing the
following:
* A clear and accountable strategy of sustainable exploration and
commercialisation of SMS deposits
* Management working with outsourced expertise
* Stakeholder relationships in all facets of the business
Neptune's immediate goal is to confirm the tonnage and grade of SMS mineral
deposits of sufficient value to justify major capital investment.
1. Exploration
Neptune has granted exploration title to all known SMS occurrences within the
New Zealand EEZ. New Zealand is one of only two countries in the world with an
existing legislation to grant and administer exploration and mining licenses for
SMS. New Zealand is home to world-class SMS research organisations and has a
government which is both pragmatic and supportive of Neptune's activities.
2. New Ventures
The identification and acquisition under license of SMS-prospective areas is
regarded as a strategic strength for Neptune that will be a material asset, when
the economics of the SMS ore model are proven. Applications for new venture
areas provide leverage in partnering opportunities and could provide a series of
tenements "in the pipeline" that can be explored in future.
Neptune has identified the Western Pacific region as a high priority for
Neptune's SMS exploration. Areas within the EEZ of maritime nations around the
Pacific "Ring of Fire" from Japan through to Vanuatu are either under current
application or will have applications to explore made.
3. Partnering
The Company is actively seeking joint venture (JV) partners to fast track
exploration activities and drive the definition and exploitation phases of SMS
development. Neptune will concentrate initially on following up with "logical
partners" from the minerals industry with whom initial discussions have already
been held.
RESULTS AND DIVIDEND
The loss for the Group for the period ended 30 June 2006 amounted to #1,760,000.
The directors do not recommend the payment of a dividend.
REVIEW OF OPERATIONS
During the reporting period, 20 April 2005 to 30 June 2006, the Group recorded a
net loss attributable to shareholders of #1,760,000. During this time, the Group
achieved a number of key operational milestones. They were:
World's first commercial SMS drilling exploration program - "Kermadec 05"
Within six weeks of the Company's Initial Public Offering ("IPO"), the Group had
mobilised a vessel, coring system and sub-sea remotely operated vehicle ("ROV")
to commence the "Kermadec 05" project. The Group undertook the world's first
commercial coring program of SMS deposits in December 2005 within New Zealand
waters. The recovery of core, surface samples and survey data was successfully
completed on time and below budget.
Preliminary results
Assayed samples of chimneys and SMS debris collected during the Kermadec 05
program contain high levels of copper, gold, silver, zinc and lead. The average
metal content of a metallurgical sample contained 11.2g/t gold, 122 g/t silver,
8.1% copper, 5% zinc and 0.5% lead.
These results indicate that the SMS mineralisation model is valid. The Group now
intends to demonstrate the model in more than one locality to justify a
commercially exploitable resource. Accurate definition of multiple known SMS
occurrences is a key objective of the forthcoming New Zealand exploration
program "Kermadec 06".
New Zealand exploration licences granted
In January and March 2006, the Group was granted two further exploration
licences in New Zealand waters (PL39 194 and PL39 205). Combined with its
original permit (PL39 195) granted in 2002 to a current subsidiary of the
Company, the Group now has 100% interest in three prospecting licences for SMS
deposits in New Zealand-controlled waters, with a total area over 60,000 km2.
New exploration ventures
The Group is pursuing an active application program for new exploration areas
around the globe. The search for new ventures is concentrated on areas with
known SMS occurrences defined by international academic research. The Group has
current applications for SMS exploration in the Exclusive Economic Zone of five
nations.
"Kermadec 06" operations - tenders out for contract
The Group has identified priority areas which will be targeted for exploration
in the Kermadec 06/07 program. Activities will include high-definition
multi-beam bathymetry (swath) mapping and geophysical and acoustic mapping of
SMS deposits in PL39 195. Contractors that operate a variety of seafloor mapping
and geophysical systems have tendered for the contract.
MATTERS SUBSEQUENT TO THE END OF THE PERIOD
On 1 July 2006, the Company invited tenders from offshore vessel and survey
equipment providers for the "Kermadec 06" exploration program in New Zealand.
The contract to undertake the "Kermadec 06" exploration survey is expected to be
awarded in the third quarter 2006 and work is scheduled to commence in late 2006
or early 2007, contingent upon the availability of a suitable vessel and
equipment.
On 10 July 2006, the Company awarded a Corporate Advisory Mandate to Resource
Finance Corporation ("RFC") with a view to identifying suitable joint venture
partners and cornerstone investors to help fast track resource definition and
development within the Company's exploration portfolio. RFC is an Australian
investment bank which has a successful record in providing investment services
and strategic advice to the mining sector.
On 20 July 2006, the Company released an announcement to the London Stock
Exchange on preliminary results of metallurgical testwork on samples collected
during the Kermadec 05 program.
OUTLOOK
* The successful tender to undertake Kermadec 06 exploration should be
announced in third Quarter 2006. Field work for Kermadec 06 exploration will
be carried out in late 2006 or early 2007, contingent on the availability of
suitable vessels and equipment.
* The results from Kermadec 06 will guide Kermadec 07 activities in the
second half of 2007. The latter will define the SMS targets in New Zealand
areas by bulk sampling and drill testing.
* Neptune currently has applications over known SMS areas in the
EEZ of five separate countries. Within the next year Neptune expects the
granting of Exploration License Applications in Papua New Guinea and
Vanuatu.
* Neptune's growth policy of researching and applying for New Ventures
areas will continue. The Company will look to make application over SMS and
submarine epithermal gold deposits.
Neptune hopes to fast track the definition and development stages of its New
Zealand projects by entering into JV partnerships. With the granting of new
exploration licenses in other jurisdictions, Neptune will seek partners for
exploration and development of those licenses as well.
Simon McDonald
Chief Executive
This announcement was approved by the Board of Directors on 1 September 2006
CONSOLIDATED INCOME STATEMENT
Period ended 30 June 2006
2006
Note #'000
Administrative expenses (1,934)
Other operating expenses (6)
________
Operating loss (1,940)
Investment income 180
________
Loss before taxation (1,760)
Taxation -
________
Loss for the period (1,760)
========
Attributable to:
Equity holders of the Company (1,760)
========
Loss per share
Basic 4 (4p)
========
Diluted 4 (4p)
========
The income statement has been prepared on the basis that all operations are
continuing.
There are no recognised gains and losses other than those passing through the
income statement.
CONSOLIDATED BALANCE SHEET
At 30 June 2006
2006
ASSETS Note #'000
Non-current assets
Intangible assets 2,360
Property, plant and equipment 18
________
2,378
Current assets
Trade and other receivables 102
Cash and cash equivalents 5,197
________
5,299
________
Total assets 7,677
========
EQUITY AND LIABILITIES
Capital and reserves
Share capital 288
Share premium 8,789
Share option reserve 392
Retained earnings (1,946)
________
Total equity 7,523
Current liabilities
Trade and other payables 154
________
Total liabilities 154
________
Total equity and liabilities 7,677
========
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Period ended 30 June 2006
Share Share Share Retained Total
option Capital Premium Earnings
reserve
#'000 #'000 #'000 #'000 #'000
Balance at 20 April 2005 - - - - -
Exchange differences on
translating foreign
operations - - - (186) (186)
Loss for the period - - - (1,760) (1,760)
Share option benefit 392 - - - 392
Ordinary shares issued - 288 - - 288
Premium on shares issued - - 8,789 - 8,789
_______ _______ _______ _______ _______
Balance at 30 June 2006 392 288 8,789 (1,946) 7,523
======= ======= ======= ======= =======
CONSOLIDATED CASH FLOW STATEMENT
Period ended 30 June 2006
2006
#'000
OPERATING ACTIVITIES
Operating loss (1,940)
Adjustment for:
Share option benefit 392
Depreciation 6
________
Operating cashflow before changes in working capital (1,542)
Increase in trade and other receivables (102)
Increase in trade and other payables 154
________
Net cash used in operating activities (1,490)
________
Investing activities
Purchase of property, plant and equipment (24)
Intangibles (2,360)
________
Net cash used in investing activities (2,384)
________
Financing activities
Interest received 180
Issue of share capital 9,077
________
Net cash from financing activities 9,257
________
Net increase in cash and cash equivalents 5,383
Cash and cash equivalents at 20 April 2005 -
Effect of foreign exchange rate changes (186)
________
Cash and cash equivalents at 30 June 2006 5,197
========
NOTES TO THE FINANCIAL STATEMENTS
1. PRINCIPAL ACCOUNTING POLICIES
Basis of preparation
The consolidated financial statements have been prepared in accordance with
International Financial Reporting Standards (IFRS), including IFRIC
interpretations as adopted for use in the European Union and in accordance with
those parts of the Companies Act 1985 applicable to companies reporting under
IFRS.
The financial statements have been prepared in accordance with the historical
cost convention, with the exception of share-based payments.
Basis of consolidation
The Group financial statements comprise the financial statements of Neptune
Minerals Plc and all its subsidiaries. Subsidiaries are all entities over which
the Group has the power to govern the financial and operating policies generally
accompanying a shareholding of more than half of the voting rights. The
existence and effect of potential voting rights that are currently exercisable
or convertible are considered when assessing whether the Group controls the
entity.
The results of operations of subsidiary undertakings are included in the
consolidated financial statements as from the date of acquisition, which is the
date on which control of the acquired subsidiary is effectively transferred to
the buyer. The results of operations of subsidiary undertakings disposed of are
included in the consolidated income statement until the date of disposal, which
is the date on which the parent ceases to have control of the subsidiary
undertaking.
The purchase method of accounting is used to account for the acquisition of
subsidiaries by the Group. The cost of an acquisition is measured as the fair
value of the assets given, equity instruments issued and liabilities incurred or
assumed at the date of exchange, plus costs directly attributable to the
acquisition. Identifiable assets acquired and liabilities and contingent
liabilities assumed in a business combination are measured initially at their
fair value at the acquisition date, irrespective of the extent of minority
interest. The excess of the cost of acquisition over the fair value of the
Group's share of the identifiable net assets acquired is recorded as goodwill.
If the cost of acquisition is less than the fair value of the net assets of the
subsidiary acquired then the difference is recognised directly in the income
statement.
2. TURNOVER
The Group's principal activity during the period was the exploration for SMS
deposits in the New Zealand held acreage and the identification of new SMS
environments.
Turnover for the period is #nil.
3. OPERATING PROFIT
2006
This is arrived at after charging: #'000
Auditors' remuneration
- audit services 12
- non-audit services 108
Staff costs including directors' emoluments 309
Depreciation 6
Net foreign exchange loss 325
========
4. LOSS PER SHARE
The calculation of basic loss per share is based on the loss for the period
attributable to shareholders of the Company of #1,760,000 and the weighted
average number of 44,968,237 shares in issue during the period. These values
have been calculated to reflect the shares issued and the subdivision of shares
on 18 August 2005 being in existence from 20 April 2005, the Company's
incorporation date.
Diluted loss per share for the period ended 30 June 2006 is equal to the basic
loss per share as the exercise price of the share options granted by the Company
was higher than the average market price for shares during the period. In period
ended 30 June 2006 there were no dilutive potential ordinary shares in issue.
This preliminary announcement of the results for the year ended 30 June 2006 is
an excerpt from the forthcoming 2006 Annual Report & Accounts and does not
constitute the statutory accounts for 2006 for the purposes of section 240(3) of
the Companies Act 1985. The 2006 figures are extracted from the audited accounts
for that year which have not yet been filed with Companies House. The duly
authorised Board Committee has approved this preliminary announcement.
Copies of the Report and Accounts for the year ended 30 June 2006 will be sent
to shareholders in due course and will be available from Corporate Synergy Plc,
30 Old Broad Street, London, EC2N 1HT.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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