RNS Number:0027R
New Millennium Resources NL
16 October 2003
NEW MILLENNIUM RESOURCES NL
PRELIMINARY RESULTS FOR THE YEAR ENDED 30 JUNE 2003
DIRECTORS' REPORT
Principal activities
The principal activities of the entity during the course of the financial year
are the engineering planning and development of its metallurgical process and
geological work in Greenland.
Review and results of operations
The loss after tax for the year ended 30 June 2003 was $1,022,168 (2002:
$1,717,113).
Sarfartoq Licence Area
During the year an extensive ground radiometric survey was carried out.
Widespread Nb2O5 results were returned from several of the anomalies. The most
significant of the pyrochlore occurrences was at Sarfartoq 2, which returned
rock chip assays averaging 14.4% Nb2O5 over 200 metres of strike with a high
grade core averaging 28.8% Nb2O5 with values as high as 38% Nb2O5 and 407ppm
Ta2O5. Sarfartoq 2.5 returned significant Nb2O5 results, with rock chip assays
running as high as 48% Nb2O5 and 4280ppm Ta2O5. The close proximity of these
deposits augurs well for future mining operations.
The radiometric survey also showed that niobium mineralization is not just
localized to the Sarfartoq 1 vacinity. At SU25 (which is 2 kilometers away) rock
ship assays ran as high as 16.2% Nb2O5. This further demonstrates that there is
potential for more niobium mineralization in the surrounding area. Stream
sediments samples taken east of the Sarfartoq tenement from the new ground
returned significant niobium and tantalum assays. Follow up exploration work is
required to identify the source of the niobium.
New Millennium Resources NL's Sarfartoq Licence area has been expanded from its
original 104 sq km to 765 sq km. The expansion was the result of combining the
areas of the Sarfartoq Licence (104 sq km), the Innajuattoq Licence (364 sq km)
and the addition of new additional ground that is prospective for both niobium
and diamonds.
Joint Venture with Chinese Processor
A Memorandum of Understanding has been signed with one of China's largest
niobium's producers. The company has 38 years experience in niobium processing
and the aim of the Memorandum of Understanding is to form a joint venture (JV)
processing plant in China.
This will allow New Millennium Resources NL to leapfrog its project to being a
niobium oxide processor, without the cost and learning curve of building its own
plant.
Combining New Millennium Resources NL's proprietary niobium recovery process
with the Chinese plant to produce high-purity niobium oxide will result in
significant cost reduction in the production cost for the JV.
The Chinese partner will take-off a significant percentage of the JV plant's
output (at market price) and the remainder can be sold within China itself and
elsewhere. The directors consider the market for high purity oxide in China to
be large.
Joint Venture with Hudson Resources Inc.
An agreement was signed with Hudson Resources Inc of Canada to establish a joint
venture to explore for diamonds, nickel, copper, cobalt, gold and platinum group
metals on Sarfartoq Exploration Licence 2001/05. Hudson Resources can earn up to
80% of these mineral rights by spending AUD$1,000,000 over a period of 4 years.
Capital Raising
During the year the Company received $1,653,000 from the conversion of 8,265,000
options that were exercised at 20 cents per share and $57,695 from the
conversion of 299,000 options that were exercised at 19.3 cents per share.
On the 12th November 2002 an agreement was signed with Cornell Capital Partners
Offshore L.P. to fund up to #4,500,000 by way of an equity line of credit.
Departure of Director/New Appointments
On 27th June 2003, Michael Chee-Hoong Yang resigned from the Company as a
Director and Chong-Kiat Lim resigned as Managing Director and Company Secretary.
Chong-Kiat Lim remains as a Non-Executive Director. Nikolajs Zuks was appointed
as the new Managing Director.
The Board thank Michael Chee-Hoong Yang and Chong-Kiat Lim for their
contribution to the company.
Dividends
No dividends were paid or declared by the Company to members during or since the
end of the previous financial year.
State of affairs
The following significant changes in the state of affairs of the Company
occurred during the financial year:
(i) 3,765,000 shares were issued at $0.20 per share on 22 October 2002 by way of
exercise of options
(ii) 750,000 shares were issued at $0.25 per share on 12 November 2002 for
payment of an implementation fee for capital raising purposes
(iii) 4,500,000 shares were issued at $0.20 per share on 27 November 2002 in
settlement of loans from directors
(iv) 299,000 shares were issued at $0.193 per share on 3 February 2003 by way of
exercise of options
Environmental regulation
The Company's operations are not subject to environmental regulation under
Commonwealth and State legislation as its tenements are located in Greenland.
Likely future developments
The likely developments in the operations of the economic entity and the
expected results of those operations in future financial years are as follows:
The Company is currently negotiating an agreement to acquire 100% of Angola
Resources Pty Ltd that holds an interest in diamond concession C9, 30 km north
of the large operating Catoca Diamond Mine in the north east of Angola.
Extensive mapping and exploration has identified an alluvial inferred resource
of 8,700,000 carats. The Company intends to develop the project at an initial
rate of 10,000 carats per month. Production is planned to commence in May 2004.
Events subsequent to reporting date
The Company sold its land and buildings on 22 August 2003 and received
settlement funds totalling $112,953, after paying out the Company's secured bank
loan in the sum of $266,000.
Loan funds totalling $390,700 were received on 29 August and 2 September 2003.
They will be converted into shares in the Company at a rate of $0.05 per share
at the option of the directors. The funds were primarily raised to fund the
acquisition of Angola Resources Pty Ltd.
The Company is currently negotiating an agreement to acquire 100% of Angola
Resources Pty Ltd that holds an interest in diamond concession C9, 30 km north
of the large operating Catoca Diamond Mine in the north east of Angola.
Extensive mapping and exploration has identified an alluvial inferred resource
of 8,700,000 carats.
The Company intends to develop the project at an initial rate of 10,000 carats
per month. Production is planned to commence in May 2004.
David Albert Lloyd Johnston
Chairman
Statement of financial performance
For the year ended 30 June 2003
2003 2002
$ $
Other revenues from ordinary activities 35,119 428,467
-------- ---------
Total revenue from ordinary activities 35,119 428,467
-------- ---------
Administration (753,335) (763,289)
Borrowing costs (19,723) (3,774)
Listing costs - (868,093)
Commission paid (62,427) --
Exploration expenditure written off (59,714) (323,713)
Depreciation (64,758) (15,169)
Other expenses from ordinary activities (97,330) (171,542)
-------- ---------
Loss from ordinary activities before related
income tax benefit (1,022,168) (1,717,113)
-------- ---------
Income tax expense relating to ordinary
activities - -
======== =========
Loss from ordinary activities after related
income tax benefit (1,022,168) (1,717,113)
======== =========
Basic loss per share .016 0.03
-------- ---------
Diluted loss per share has not been disclosed as the options over ordinary
shares would not show an inferior view of the basic loss per share and as such
they are not considered dilutive.
Statement of financial position
As at 30 June 2003
2003 2002
$ $
Current assets
Cash assets 307,732 527,833
Receivables 823 60,847
Other - 2,944
Property, plant and equipment 395,128 -
-------- --------
Total current assets 703,683 591,624
======== ========
Non-current assets
Property, plant and equipment 496,209 928,387
Exploration, evaluation and development
expenditure 5,167,775 4,370,100
-------- --------
Total non-current assets 5,663,984 5,298,487
======== ========
Total assets 6,367,667 5,890,111
======== ========
Current liabilities
Payables 77,685 236,814
Interest-bearing liabilities 266,000 17,947
-------- --------
Total current liabilities 343,685 254,761
======== ========
Non-current liabilities
Interest-bearing liabilities - 248,053
-------- --------
Total non-current liabilities - 248,053
-------- --------
Total liabilities 343,685 502,814
======== ========
Net assets 6,023,982 5,387,297
======== ========
Equity
Contributed equity 11,186,980 9,528,127
Accumulated losses (5,162,998) (4,140,830)
-------- --------
Total equity 6,023,982 5,387,297
======== ========
Statement of cash flows
For the year ended 30 June 2003
2003 2002
$ $
Cash flows from operating activities
Cash receipts in the course of operations 3,781 340,773
Cash payments in the course of operations (1,003,943) (2,127,584)
Interest received 29,125 85,282
Borrowing costs paid (19,723) (3,774)
-------- --------
Net cash used in operating activities (990,760) (1,705,303)
-------- --------
Cash flows from investing activities
Payments for property, plant and equipment (34,053) (927,364)
Exploration, evaluation and development
expenditure (857,389) (1,319,534)
Proceeds from sale of non-current assets 3,248 -
-------- --------
Net cash used in investing activities (888,194) (2,246,898)
-------- --------
Cash flows from financing activities
Proceeds from issue of shares 810,695 3,232,298
Capital raising costs (51,842) (56,372)
Proceeds from borrowings:
Other 900,000 266,000
-------- --------
Net cash provided by financing activities 1,658,853 3,441,926
-------- --------
Net decrease in cash held (220,101) (510,275)
Cash at the beginning of the financial 527,833 1,038,108
year -------- --------
Cash at the end of the financial year 307,732 527,833
======== ========
Notes:
1. Basis of preparation
The financial report is a general purpose financial report which has been
prepared in accordance with Accounting Standards, Urgent Issues Group Consensus
Views, other authoritative pronouncements of the Australian Accounting Standards
Board and the Corporations Act 2001.
It has been prepared on the basis of historical costs and except where stated,
does not take into account changing money values or fair values of assets.
These accounting policies have been consistently applied by the company and,
except where there is a change in accounting policy, are consistent with those
of the previous year.
2. Earnings per share
Weighted average number of ordinary shares outstanding during the year used in
calculation of basic EPS was 62,843,847.
Dilutive earnings per share has not been disclosed as the notional exercise of
options over ordinary shares would not show an inferior view of the basic
earnings per share and as such they are not considered dilutive. There are no
options outstanding as at 30 June 2003.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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