RNS Number:7440T
Central African Mining&Exploration
31 December 2003
Central African Mining & Exploration Company Plc
('CAMEC' or 'the Company')
Interim Results for the period ended 30 September 2003
Central African Mining and Exploration Company Plc, the AIM listed fully
integrated exploration, mining, trading and investment company announces its
interim results for the period ended 30 September 2003.
Overview:
*Turnover increased to #1,293,852 (2002: #48,332)
*Unrealised potential profit of over #3 million from investment in
Southern African Resources Plc
*Operational infrastructure in the DRC and Mozambique consolidated
*Copper and cobalt export licences in DRC granted
*Exploration licences (for all resources) granted at Moba and Mitwaba in
DRC
*14,000 sq km 'Exploration Permit' in the Lodja region of DRC imminent
*Due diligence on Lubumbashi copper-cobalt smelter in progress
*Gecamines copper-cobalt deposit JV negotiations in progress
* Gold and tantalum prospecting licences being negotiated in Mozambique
* #2.4 million fund raising since period end
CHAIRMAN'S STATEMENT
I am pleased to announce our results for the interim period ending 30th
September 2003 and update you on the substantial progress your Company has made.
We have established a solid base in Central and Southern Africa, particularly in
the Democratic Republic of the Congo (DRC) Mozambique, Zimbabwe and Namibia. We
now believe we are well positioned to take advantage of the amelioration of the
political and economic situation in the region which we feel will be
particularly relevant to the DRC and Mozambique. We remain committed to our
expansionist strategy by pursing value added projects to achieve our vision of
developing CAMEC into a substantial and fully integrated exploration, mining,
trading and investment company.
Financial Results:
During the period we have invested heavily in establishing an operational
infrastructure which we believe is paramount to expanding the Company's
activities and maximising the opportunities that are becoming available
particularly in the DRC. In line with this investment policy, I am reporting an
operating loss of #151,260 (2002:#128,436) on a substantially increased turnover
of #1,293,852 (2002:#48,332) predominantly resulting from the export of copper
and cobalt from the DRC and tantalum from Namibia and Mozambique. Net assets now
stand at #5.24 million. This includes our investment in Southern African
Resources Plc which has a book value in the accounts of #1,050,000 at 3p per
share. With the SAR shares now trading at over 14p per share, we have a
potential profit of over #3,000,000 for CAMEC. Following a recent placing of
62,087,500 new ordinary shares of 0.1p each at 4p per share raising #2,483,500,
we are in a position to secure further development projects.
Operational Review:
We now have an operational presence in the Democratic Republic of the Congo,
South Africa, Namibia, Mozambique and Zimbabwe. However, during the period we
have been focusing our activities predominantly in the DRC, Mozambique and
Zimbabwe, where we feel there is huge potential especially in copper, cobalt,
gold, silver and tantalum.
Following much investment of capital, time and energy in establishing ourselves
in the DRC we are beginning to see the benefits, which include our grant of
licences to export raw copper and cobalt ore. In addition we feel our business
network and reputation has been further recognized by The Ministry of Mines and
contributed significantly to our successful licence applications and subsequent
granting of 'Permit de Recherches' (Exploration Permits) in the Moba and Mitwaba
regions of the Katanga Province in the south of the country. These allow for the
exploration of all minerals and resources within the designated areas and will
greatly increase our regional profile. Furthermore we hope to announce shortly
the grant of an additional 14,000 sq km 'Exploration Permit' in the Lodja region
of the Kasai-Orientel Province where we will concentrate our activities on gold
and diamond exploration.
As reported earlier this month, The Moba Exploration Permits cover nine
contiguous areas constituting approximately 3250 sq km at Moba in the Tanganyika
district of Katanga. Bordering Lake Tanganyika, the property is situated to the
North of the Dikulushi area, where Australian mining company Anvil has reported
grades of 8% copper and 200g/tonne of silver. At Moba we will initially
concentrate our exploration activities on copper and gold.
The 5000 sq km Mitwaba Exploration Permits cover 16 contiguous areas at Mitwaba
in the Haut-Katanga district of Katanga, a region known to have substantial tin
and tantalum deposits. The area also contains the Pijolait cassiterite mines as
well as significant artisnal gold mining activity. We will initially concentrate
our exploration activities at Mitwaba on tin, tantalum, gold and silver.
We believe these areas have great potential as they not only have a substantial
amount of local artisnal mining activity but are also adjacent to areas with
considerable inferred copper, cobalt, gold, silver, tantalum and tin resources.
In order to maximise our copper and cobalt export operations within the DRC 'by
adding value', we have spent considerable time on identifying a copper-cobalt
smelter as well as potential copper-cobalt deposits. In line with this, we are
currently in negotiations to purchase the 'Founderies Africaines Sprl' smelter
in Lubumbashi where we are in the process of conducting a due diligence
programme, which is expected to be completed by 31 January 2004. We are also in
negotiations with Gecamines, the state owned mining company over a substantial
copper cobalt ore body in southern Katanga province which again we hope to
announce on in the near future.
We continue to develop an operational infrastructure in Mozambique, with
particular interest in the tantalum rich Zambezia province, where we currently
have a buying operation. To expand on this, we are in advanced negotiations to
secure a number of exploration, prospecting, buying and exporting licences for
gold, tantalum and associated minerals, which will give us more access to the
country's rich resources. To co-ordinate our activities we have opened an office
in the capital, Maputo, which we feel will consolidate our position and maximise
our ability to take advantage of the opportunities in the resource sector that
are becoming available.
Although we are remaining relatively low key, we feel that it is now an
important time to expand our presence in Zimbabwe. We believe that the political
situation will improve in the not too distant future, leading to the return of
foreign investment particularly in the country's mining sector. In line with
this we are maintaining a number of significant tantalum exploration permits and
have recently been awarded an official gold buying and production licence.
Our main investment remains in AIM listed Southern African Resources Plc (SAR).
Our investment has a book value of just over a million pounds sterling at 3p per
share. With the SAR shares now trading at over 14p this represents a substantial
unrealised profit for the Company.
SAR's subsidiary, Biz Africa 1673 (PTY) Ltd, holds the Exclusive Prospecting
rights on the 4600 Hectare Leeuwkop property on the western limb of the Bushveld
complex in South Africa. As reported earlier this year, 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. We commissioned
Snowden Group to oversee a 35,000 metre confirmatory drilling programme to take
the project to bankable feasibility status, which I am pleased to report has now
started. We believe that the project has great promise and will contribute
considerably in generating shareholder value in the future.
The Board:
To sustain the rapid growth of the Company, we have strengthened the Board with
the appointment of Malcolm Wilson in October as an executive director. Malcolm
has an extensive track record at executive level and considerable experience
with African companies. He has previously held a number of directorship
positions including chief executive officer & group managing director of Lonrho
Properties & Construction Africa Ltd, within the multi national conglomerate
Lonrho plc. Malcolm is an internationally experienced senior level engineer and
business executive who has a proven track record of significantly growing
businesses and delivering results to shareholders.
Outlook:
These are exciting times for your Company. We have invested heavily in building
an infrastructure in Central and Southern Africa which we believe will add to
the future success of CAMEC. We now have a number of exciting projects in a
resource rich region that we feel is set to benefit from an improvement in
political stability and a subsequent increase in foreign investment. Furthermore
we are witnessing a general strengthening of resource prices and more
particularly in the key resources that we are involved, such as copper and
cobalt. In addition we believe that 2004 may also see a slight improvement in
the price of tantalum.
Phil Edmonds
Chairman
UNAUDITED PROFIT & LOSS ACCOUNT
For the six months ended 30 September 2003
6 months ended 6 months ended Year ended
30 September 30 September 31 March
2003 2002 2003
# # #
TURNOVER 1,293,852 48,332 199,100
Cost of sales (1,114,278) - (151,703)
------------- -------- -----------
GROSS PROFIT 179,574 48,332 47,397
Net operating expenses (330,834) (176,768) (478,798)
----------- ----------- -----------
OPERATING LOSS (151,260) (128,436) (431,401)
OTHER INCOME
Exceptional profit on - - 1,045,000
disposal of investment
Share of losses from (147) - (6,193)
associated undertakings
Interest receivable 319 48 2,157
Interest payable and - (1,337) (3,206)
similar charges --- --------- ---------
(LOSS)/PROFIT ON ORDINARY
ACTIVITIES BEFORE
TAXATION (151,088) (129,725) 606,357
Taxation - - -
----------- ----------- ---------
(LOSS)/PROFIT ON ORDINARY
ACTIVITIES AFTER TAXATION (151,088) (129,725) 606,357
=========== =========== =========
(LOSS)/EARNINGS PER
SHARE
Basic (loss)/earnings per (0.044)p (0.045)p 0.193 p
share ========== ========== =========
Weighted average number 340,184,816 290,937,821 314,027,873
of shares ============= ============= =============
UNAUDITED CONSOLIDATED BALANCE SHEET
As at 30 September 2003
As at As at As at
30 September 30 September 31 March
2003 2002 2003
# # #
FIXED ASSETS
Intangible assets 2,630,662 2,649,363 2,616,862
Tangible assets 256,786 182,398 225,698
Investments 1,067,615 - 1,067,762
----------- ----------- -----------
3,955,063 2,831,761 3,910,322
---------- ----------- -----------
CURRENT ASSETS
Stocks 241,468 18,330 51,482
Debtors 1,269,670 64,698 131,440
Cash at bank and in hand 36,667 33,186 248,125
--------- --------- --------
1,547,805 116,214 431,047
CREDITORS: Amounts falling
due within one year (238,756) (125,524) (123,295)
----------- ----------- -----------
NET CURRENT ASSETS/ 1,309,049 (9,310) 307,752
(LIABILITIES) ----------- --------- ---------
TOTAL ASSETS LESS CURRENT
LIABILITIES 5,264,112 2,822,451 4,218,074
============ =========== ==========
CAPITAL AND RESERVES
Called up share capital 378,102 313,069 338,069
Share premium account 4,692,910 3,024,090 3,553,170
Merger reserve (199,000) (199,000) (199,000)
Profit and loss account 392,100 (315,708) 525,835
--------- ----------- ---------
SHAREHOLDERS' FUNDS 5,264,112 2,822,451 4,218,074
========== =========== ==========
This information is provided by RNS
The company news service from the London Stock Exchange
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