Interim Results
December 23 2003 - 12:06PM
UK Regulatory
Anglesey Mining plc
Interim Report
30 September 2003
Is it too much to hope that we are finally beginning to see the long
awaited improvement in metal prices? Since the beginning of 2003 the
price of our metals has moved upwards, although at least part of this
rise must be due to the weakness of the US dollar - the currency in
which the price of metals is dominated in international markets. In
round terms, the price of copper has improved from $1,600 to $2,200 per
tonne; lead from $450 to $690 while zinc, the most important metal for
Anglesey, has moved from $780 to $980 per tonne; however the price of
zinc is still well below its historical long term average. On the
precious metals side, gold has moved from $340 to more than $400 per
ounce while silver has reached US$5.70 per ounce. Parys Mountain
contains important quantities of precious metals including about 60,000
ounces of gold and about 8 million ounces of silver.
The long period of low prices for zinc has resulted in the closure of
many mines, smelters and refiners and delayed the development of new
projects. Looking forward a few years this situation is very likely to
lead to a supply gap, in turn this should lead to higher zinc prices.
The financial results for the six month period show a loss of �68,551,
little changed from the same period in the previous year, largely
arising from the accrual of interest due on the loan from Juno Limited
and corporate and administrative activities. The company has, for some
time, been in negotiation with a royalty holder in respect of advance
royalties payable by a subsidiary. Unfortunately these negotiations have
not been fruitful and it is anticipated that they may result in legal
action. The amount involved is of the order of �100,000.
Following the dewatering earlier in the year of the old Parys Mountain
Mine we have been re-evaluating the geological potential of the area
closer to the old mines. In the 1960s an extensive drilling programme,
carried out chiefly by Noranda, outlined a large low grade resource of
about 36 million tonnes of copper with an average grade of 0.66%. This
deposit which lies immediately to the north of and parallel to the old
mine workings, also contains silver and gold, however an insufficient
number of drill holes were assayed to enable a reliable estimation of
the silver or gold grade.
It is well established that further exploration is required at Parys
Mountain, with the objective of developing a significantly larger
deposit which could support a higher production rate. A larger deposit
should also improve the economics of the project and result in a longer
mine life. A drilling program would form a major part of such
exploration. The directors are pursuing all opportunities to raise the
necessary financing for these activities. There have been improvements
in the financial markets for mineral companies recently and these should
aid the company in its efforts to obtain funding.
On behalf of the board of directors
John F Kearney
Chairman
23 December 2003
Unaudited consolidated balance sheet
30 September 2003 30 September 2002
Fixed assets � �
Intangible assets 5,186,651 7,126,666
Tangible assets 186,352 185,136
Total fixed assets 5,373,003 7,311,802
Current assets
Debtors 105,784 103,535
Cash - 2,271
Total current assets 105,784 105,806
Current liabilities (note 1)
Creditors - amounts due within (1,371,128) (1,188,873)
one year
Net current liabilities (1,265,344) (1,083,067)
Net assets 4,107,659 6,228,735
Shareholders' funds
Share capital - equity 1,162,414 1,162,414
Share capital - non equity 5,510,833 5,510,833
Share premium - equity 5,737,146 5,737,146
Profit & loss account - deficit - (8,302,734) (6,181,658)
equity
Total shareholders' funds 4,107,659 6,228,735
Notes : -
1 Current liabilities include �1,074,508 (2001 - �936,677) due to Juno
Limited, the ultimate parent company.
2 The half year figures are neither audited or reviewed by the auditors.
They have been prepared on a basis consistent with that of the accounts
for the year ended 31 March 2003. The auditors' report on those accounts
was not qualified (but contained reference to fundamental uncertainties)
and did not contain a statement under section 237 of the Companies Act
1985.
3 This interim statement is being posted to all shareholders and is
displayed on the company's website at www.angleseymining.co.uk. Copies
are available on request from the company's registered office.
Unaudited consolidated profit and loss account
Six months to 30 Six months to 30
September 2003 September 2002
� �
Turnover - -
Net operating expenses 31,821 32,683
- continuing operations
Interest receivable (24) -
Interest payable 36,754 36,090
Loss on ordinary activities before 68,551 68,773
and after taxation
Loss per share - basic 0.06 pence 0.06 pence
Loss per share - fully diluted 0.06 pence 0.06 pence
The directors are unable to recommend a dividend.
There are no minority interests or extraordinary items.
Unaudited consolidated cash flow statement
Six months to 30 Six months to 30
September 2003 September 2002
� �
Net cash outflow from continuing (22,360) (23,380)
operating activities
Returns on investments and servicing
of finance
Interest paid (1) (2)
Interest received 24 -
23 (2)
Capital expenditure and financial
investment
Payments to acquire intangible (5,042) (7,513)
fixed assets
Net cash outflow before financing (27,379) (30,895)
Financing
Increase in loans 25,000 20,000
(Decrease) in cash (2,379) (10,895)