RNS Number:7104S
Neptune Minerals Plc
12 March 2007
For Immediate Release 12 March 2007
NEPTUNE MINERALS Plc
INTERIM RESULTS
For the six months ended 31 December 2006
Neptune Minerals Plc ('Neptune' of 'the Company'), the explorer of Seafloor
Massive Sulphides ('SMS') deposits, is pleased to announce its interim results
for the six months ended 31 December 2006.
Highlights:
* Letter of Intent signed to commence Neptune's second exploration
programme (Kermadec '07) in New Zealand
* Management team strengthened with appointments of new Exploration
Manager and Finance Manager
* Six applications for exploration licences lodged in Papua New Guinea
EEZ ('Exclusive Economic Zone')
Post reporting period highlights:
* Agreement signed with Geo Subsea for Kermadec '07 exploration
programme
* 133 applications lodged within Japan EEZ waters
* 5 applications for exploration licences lodged in Papua New Guinea
EEZ
Dr Simon McDonald, CEO of Neptune Minerals, said:
"During the last six months we have focused on development work for the next
phase of exploration and on adding new SMS applications to Neptune's portfolio.
We have successfully submitted a number of applications for exploration licences
and have reached agreement with Geo Subsea for the second phase of the Kermadec
exploration programme. We are pleased with the progress achieved and look
forward to commencing the Kermadec '07 exploration program in April."
For further information please contact:
Neptune Minerals info@nepmins.com
Simon McDonald, CEO
Corporate Synergy, T: +44 (0)20 7448 4400
Jerry Keen
Olly Cairns
Cardew Group, PR T: +44 (0)20 7930 0777
Nadja Vetter M: +44 (0)7941 340 436
Sofia Rehman M: +44 (0)7771 683 185
The Neptune Minerals Plc website is www.neptuneminerals.com
CHAIRMAN'S STATEMENT
I am pleased to report the interim results of Neptune Minerals plc ("the Company
" or "Neptune") for the six-month period to 31 December 2006.
KERMADEC 07 EXPLORATION - NEW ZEALAND
Planning for the next phase of exploration within Neptune's New Zealand acreage
(Kermadec 07) has been ongoing over the last six months. The timing to
undertake Kermadec 07 has been dependent on the availability of a suitable and
cost-effective ship and ancillary survey and sampling equipment.
After an extensive tendering process Neptune signed a Letter of Intent with the
well-regarded Norwegian Geo Subsea group in December. Kermadec '07 is expected
to commence in April 2007.
Geo Subsea is part of the Geo ASA group which was established in 1979. The
Group offers integrated underwater services incorporating project management,
subsea engineering, vessel operations, ROV intervention, diving intervention and
survey and positioning.
NEW VENTURES APPLICATIONS
Neptune announced in December that it had lodged six exploration licence
applications (ELAs) within the territorial waters of Papua New Guinea (PNG).
Four of the licenses are on the submarine flanks of Lihir Island, which hosts
one of the world's largest gold resources (Ladolam Deposit at 43Moz contained
gold) and which is currently being mined at 650Koz gold per year. Two
applications in the Bismarck Sea are located adjacent to a granted Exploration
Licence.
Lihir-Feni Arc Application Areas
The four applications surrounding Lihir Island were lodged by our subsidiary,
Neptune Minerals (PNG) Limited. The applications over Conical Seamount ("
Conical") and neighbouring features have a total area of 317km2 and a work
commitment, when granted, to complete high resolution surface mapping and
geophysics and to collect surface samples.
Neptune's ELA 1425 targets Conical to the south of Lihir Island. Conical has
already been sampled and drilled by researchers cruises and found to contain
submarine epithermal gold mineralisation similar to the Ladolam deposit.
Previous research grab-samples recovered distinctive epithermal-style
polymetallic veins with gold grades reaching 230g/t Au, averaging 25g/t Au from
40 samples.
Research drilling at the summit plateau of Conical in 2002 (39 holes, 31%
average recovery) confirmed the sub-seafloor extent of surface gold
mineralization and associated alteration to depths of at least 4.5m. Drill core
samples of clay-silica alteration contain average gold grades up to 14.2g/t Au
over a length of about 30cm and appear to be part of a more extensive gold zone.
The three other ELA areas around Lihir - ELA 1449 (New World), ELA 1457 (Dripela
Maunten) & ELA 1458 (Fopela Susa) have not been researched to any great extent,
but have features similar to Conical and in similar locations on the flanks of
the Lihir seamount.
Bismarck Sea Application Areas
These applications in the central Bismarck Sea were made by Neptune Minerals
(PNG) Limited adjacent to a granted Exploration Licence (EL) which has been the
subject of intensive commercial SMS exploration and scientific research. Both
applications (ELA 1541 (Klostu) and 1542 (Namel) are situated on structural
features related to SMS mineralisation processes in the granted EL.
ADDITIONS TO NEPTUNE MANAGEMENT TEAM
In October, Neptune made important additions to the management team with the
employment of Mr Justin Baulch as Exploration Manager and Mr Chandra Wijeratne
as Finance Manager. Both are highly skilled individuals with the required
experiences to greatly benefit Neptune as the Company looks towards future
exploration and development programs.
Justin Baulch was part of the Placer Dome global exploration team, involved in
project generation, acquisition and management of gold, PGE and base metals
projects in the Asia-Pacific region. He was instrumental in getting Placer
involved in Nautilus' PNG project. Most recently Justin was Vice President of
Exploration for Nautilus Minerals. Justin planned, managed and undertook the
first three commercial exploration programs run in the Manus Basin on behalf of
Placer and then Nautilus
Chandra Wijeratne is a qualified accountant with more than 30 years' experience
in commercial accounting in Australia, the United Kingdom, Africa and Sri Lanka.
He served as financial controller in companies engaged in mining, mining support
services and international shipping. Chandra was Financial Controller of Delta
Gold from 1984 to 2000, helping to grow the company from a nascent explorer to a
middle tier gold mining company.
KEY OBJECTIVES
The Company's key objective remains to grow Neptune's value and business model
by refining the exploration techniques for SMS deposits; by adding prospective
SMS areas to Neptune's exploration portfolio and by entering strategic
partnerships with companies of international repute and high calibre.
Following the period end, Neptune Management has actively pursued the Company's
key objectives as follows:
A contract was signed in January with Geo Subsea for the Kermadec 07
exploration. Current timing has the survey vessel 'SV Geosounder' on charter in
March and on station in April 2007.
133 Applications were lodged within Japan EEZ waters in February covering 9
areas, 8 of which are over known sulphide mineralisation. The applications were
lodged by our wholly-owned subsidiary, Neptune Minerals Japan Kabushiki Kaisha
and made pursuant to the Japan Mining Act.
5 new Exploration Licence Applications (ELA) were lodged in Papua New Guinea
waters in February. The applications cover prospective seamounts surrounding
the islands of the Tabar-Feni Arc. Numerous epithermal gold occurrences are
known on these islands, including the Ladolam Deposit on Lihir Island (43Moz
contained gold; producing at 650Koz gold per year) and the 2.4Moz Simberi gold
deposit in the Tabar Island Group where gold production is due to begin in late
2007. The target is high-grade epithermal gold mineralization similar to that
sampled and drilled on Conical.
CASH POSITION
Neptune's cash position as at 31 December 2006 was #4.7 million. As at the end
of February 2007 the company's cash position was #4.5 million.
Peter Vanderspuy
Chairman
9 March 2007
NEPTUNE MINERALS PLC
CONSOLIDATED INCOME STATEMENT
For the six months ended 31 December 2006
Six months Six month Financial Year
ended Ended ended
31 December 2006 31 December 2005 30 June 2006
(unaudited) (unaudited) (audited)
Note #'000 #'000 #'000
Administrative expenses (552) (632) (1,934)
Other operating expenses - - (6)
Operating Loss (552) (632) (1,940)
Investment income 109 33 180
Loss for the period before (443) (599) (1,760)
taxation
Taxation - - -
Loss after taxation (443) (599) (1,760)
Earnings per share (in
pence)
Basic 5 (1p) (3p) (4p)
Diluted 5 (1p) (3p) (4p)
The income statement has been prepared on the basis that all operations are
continuing.
NEPTUNE MINERALS PLC
CONSOLIDATED STATEMENT OF RECOGNISED INCOME AND EXPENSE
For the six months ended 31 December 2006
Six months Six month Financial Year
ended Ended ended
31 December 2006 31 December 2005 30 June 2006
(unaudited) (unaudited) (audited)
Note #'000 #'000 #'000
Exchange differences on 8 228 - (186)
translation of foreign
operations
Net income recognised 228 - (186)
directly in equity
Loss for the period (443) (599) (1,760)
Total recognised income and (215) (599) (1,946)
expense for the period
NEPTUNE MINERALS PLC
CONSOLIDATED BALANCE SHEET
As at 31 December 2006
As at As at As at
31 December 2006 31 December 2005 30 June 2006
(unaudited) (unaudited) (audited)
Note #'000 #'000 #'000
Assets
Non-current assets
Intangible assets 6 2,583 2,868 2,360
Property, plant and 21 7 18
equipment
2,604 2,875 2,378
Current assets
Trade and other receivables 9 105 102
Cash and cash equivalents 4,731 6,470 5,197
4,740 6,575 5,299
Total assets 7,344 9,450 7,677
Equity and liabilities
Capital and reserves 8
Share capital 288 288 288
Share premium 8,789 8,789 8,789
Share option reserve 392 - 392
Retained profits (2,161) (599) (1,946)
Total equity 7,308 8,478 7,523
Current liabilities
Trade and other payables 36 972 154
Total liabilities 36 972 154
Total equity and 7,344 9,450 7,677
liabilities
NEPTUNE MINERALS PLC
CONSOLIDATED CASH FLOW STATEMENT
For the six months ended 31 December 2006
Six months Six month Financial Year
ended Ended ended
31 December 2006 31 December 2005 30 June 2006
(unaudited) (unaudited) (audited)
#'000 #'000 #'000
Operating Activities
Operating loss (552) (632) (1,940)
Adjustment for:
Share option benefit - - 392
Depreciation 1 - 6
Operating cashflow before changes (551) (632) (1,542)
in working capital
Increase in trade and other 93 (105) (102)
receivables
Increase in trade and other (118) 44 154
payables
Net cash used in operating (576) (693) (1,490)
activities
Investing Activities
Purchase of property, plant and (4) - (24)
equipment
Intangibles (223) (1,914) (2,360)
Net cash used in investing (227) (1,914) (2,384)
activities
Financing activities
Interest received 109 - 180
Issue of share capital - 9,077 9,077
Net cash from financing activities 109 9,077 9,257
Net increase in cash and cash (694) 6,470 5,383
equivalents
Cash and cash equivalents at 30 5,197 - -
June 2006
Effect of foreign exchange rate 228 - (186)
changes
Cash and cash equivalents at 31 4,731 6,470 5,197
December 2006
The notes form part of these interim financial statements.
NEPTUNE MINERALS PLC
NOTES TO THE INTERIM RESULTS
For the six months ended 31 December 2006
1. The Company is a public listed Company incorporated on 20 April 2005
and registered in England and Wales. Its shares are listed on the Alternative
Investment Market ("AIM") of the London Stock Exchange. The principal place of
business of the Company is in England. The principal activities of the Company
and its subsidiaries (the Group) are described in note 4.
2. The interim results for the period ended 31 December 2006 are
unaudited and do not constitute statutory accounts within the meaning of s.240
of the Companies Act 1985. They have been prepared in accordance with
International Financial Reporting Standards and the accounting policies adopted
in the admission document issued in relation to the admission of Neptune
Minerals plc to the AIM market ("AIM") on 10 October 2005 ("the Admission").
3. 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 one 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 another 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 values at the acquisition date, irrespective of the extent of any 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 the difference is recognised directly in the income
statement.
4. The Group comprises Neptune Minerals Plc, the ultimate holding
company of which the principal activity is investment holdings, and its
subsidiary companies which are all wholly-owned and are as follows:
Name of Company Place of Ownership Principal Activities
incorporation and
operation
Neptune Resources (New Zealand ) New Zealand 100% Mineral exploration
Ltd
Neptune Resources (Kermadec) Ltd* New Zealand 100% Mineral exploration
Neptune Resources (Monowai) Ltd* New Zealand 100% Mineral exploration
Neptune Resources (Colville) Ltd* New Zealand 100% Mineral exploration
Neptune Minerals (Marianas) Ltd UK 100% Non trading
Neptune Minerals (Italia) S.r.l. Italy 100% Non trading
Neptune Minerals (PNG) Ltd Papua New Guinea 100% Non trading
Neptune Minerals (Vanuatu) Ltd Vanuatu 100% Non trading
Neptune Minerals (Palau) Ltd UK 100% Non trading
Neptune Minerals Japan KK Japan 100% Non trading
*These companies are subsidiaries of Neptune Resources (New Zealand) Limited
The Group profit and loss account for the period ended 31 December 2006
comprises the results of all of the above companies for the six months ended 31
December 2006.
5. 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 #443,000 (2005: #599,000) and
weighted average number of shares on issue during the period.
Six months Six month Financial Year
ended Ended ended
31 December 2006 31 December 2005 30 June 2006
(unaudited) (unaudited) (audited)
#'000 #'000 #'000
Weighted average number of 57,665,000 19,416,250 44,968,237
shares
Diluted loss per share for the period ended 31 December 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 the period ended 31 December 2006 there were no dilutive potential ordinary
shares on issue.
6. Intangible Assets
Six months Six month Financial Year
ended Ended ended
31 December 2006 31 December 2005 30 June 2006
(unaudited) (unaudited) (audited)
#'000 #'000 #'000
Cost and net book value
At 30 June 2006 2,360 - -
Addition during the period 223 2,868 2,360
At 30 June 2006 2,583 2,868 2,360
As at 31 December 2006, the Group owned 100% of Prospecting Licences ("PL")
being PL 39-194 (Central and Northern Kermadec, 35,000 square kilometers), PL
39-195 (Kermadec, 7,800 square kilometers) and PL 39-205 (Colville Ridge, 15,000
square kilometers) within New Zealand waters. The Company holds 100% of each
licence through Neptune Resources New Zealand Limited.
The recoverability of the exploration expenditure is dependent upon economically
recoverable reserves being discovered in the licence areas and sufficient cash
resources being discovered in the licence areas and sufficient cash resources
being available to enable the group to complete exploration activity and access
those reserves. The exploration expenditure relates to mineral exploration
activities in the Kermadec licence area and prospecting costs for the Centre and
northern Kermadec and Colville Ridge areas.
7. The Directors do not propose an interim dividend.
8. Reconciliation of movement in capital and reserves
Share Capital Share Share Retained
Premium Option Profits
#'000 #'000 Reserve #'000
#'000
At 1 July 2005 - - - -
Proceeds from share issue 288 9,861 - -
Issue costs written off - (1,072) - -
Loss for the period - - (599)
At 31 December 2005 288 8,789 - (599)
Share allotment - - - -
Exchange reserve arising on
translation of financial
statements of overseas - - - (186)
subsidiaries
Share option benefit - - 392 -
Loss for the period - - (1,161)
At 30 June 2006 288 8,789 392 (1,946)
Share allotment - - -
Share option benefit - - - -
Exchange reserve arising on
translation of financial
statements of overseas - - - 228
subsidiaries
Loss for the period - - - (443)
31 December 2006 288 8,789 392 (2,161)
9. Cost of share options recognised under IFRS 2
Six months Six month Financial Year
ended Ended ended
31 December 2006 31 December 2005 30 June 2006
(unaudited) (unaudited) (audited)
#'000 #'000 #'000
At 30 June 2006 392 - -
In respect of non-performance
based options granted to
directors - - 81
In respect of options without
vesting schedule granted to other
entities for the provision of
services - - 311
At 31 December 2006 392 - 392
10. Other matters
Copies of the interim report are available from the Company's website www.neptuneminerals.com or on written request to
the Company Secretary at 18a Pindock Mews, Little Venice, London W9 2PY.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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