Interim Results
December 23 2005 - 2:01AM
UK Regulatory
RNS Number:1497W
Braemore Resources PLC
23 December 2005
BRAEMORE RESOURCES PLC
Braemore Resources Plc
Interim Report for the period from Incorporation on 2nd February 2005 to 30th
September 2005
Chairman's Statement
Following Braemore Resources Plc's ("the Company") listing on AIM in March of
this year, the Company successfully completed the acquisition of Western
Consolidated Nickel Pty Ltd ("WCN") and a #4.2 million capital raising in July,
and is now positioned with the potential to develop into a medium sized nickel
producer.
WCN has sole rights to conduct pilot plant test work and a definitive
feasibility study on the reclamation and processing of sulphide nickel tailings
at BHP Billiton's ("BHP") nickel operations at Leinster, Kambalda and Mt Keith
in Western Australia ("the Project"). WCN may proceed with the development and
operations of commercial plants to process sulphide nickel tailings commencing
at the Leinster operation and subsequently at BHP's Kambalda and Mt Keith in
Western Australia, if the definitive feasibility study satisfies the project
criteria for the production of a high grade intermediate product in the form of
a nickel sulphide containing 61% to 65% nickel.
The significant scale of the Company's nickel production potential is
highlighted by AMC Consultants Pty Ltd ("AMC") estimate that the tailings at the
Leinster, Kambalda and Mt Keith operations contained approximately 500,000
tonnes of nickel, with an average grade at Leinster of 0.51% nickel. The in
situ value of this contained nickel is approximately US$6.5 billion, based on
the London Metal Exchange Cash Buyer Nickel price on 21 December 2005 of
US$13,060 per tonne. AME further estimated that approximately 522,000 tonnes of
nickel will be added to the tailings by the on-going mining activities at the
Leinster and Mt Keith operations, up to their completion.
The progress and results of the Project to date have been positive and following
the successful completion of the drilling programme, the Company will provide an
independent JORC compliant resource statement over the coming months.
The flotation test work being carried out by Outokumpu Finland, is expected to
be completed by the end of the first quarter of 2006, facilitating the design
and construction of pilot plant operations which will provide a significant
input to the definitive feasibility study. The pilot plant testwork will
demonstrate and optimise the process and flowsheet using representative samples
of sulphide nickel tailings from Leinster.
The Board looks forward to reporting further on the positive progress of the
Project and shareholders benefiting from the unlocking of the Project's
significant development potential.
David Humann
Chairman
22nd December 2005
Independent Review Report to Braemore Resources Plc
Introduction
We have been instructed by the Company to review the financial information set
out on pages 3 to 5 and we have read the other information contained in the
interim report and considered whether it contains any apparent misstatements or
material inconsistencies with the financial information.
This report, including the conclusion, has been prepared for and only for the
Company for the purpose of their interim report and for no other purpose. We do
not, therefore, in producing this report, accept or assume responsibility for
any other purpose or to any other person to whom this report is shown or into
whose hands it may come save where expressly agreed by our prior consent in
writing.
Directors' responsibilities
The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by the Directors.
Review work performed
We conducted our review in accordance with guidance contained in Bulletin 1999/4
issued by the Auditing Practices Board as if that Bulletin applied. A review
consists principally of making enquiries of the Directors and applying
analytical procedures to the financial information and underlying financial data
and based thereon, assessing whether the accounting policies and presentation
have been consistently applied unless otherwise disclosed. A review excludes
audit procedures such as tests of controls and verification of assets,
liabilities and transactions. It is substantially less in scope than an audit
performed in accordance with Auditing Standards and therefore provides a lower
level of assurance than an audit. Accordingly we do not express an audit
opinion on the financial information.
Review conclusion
On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the period ended
30th September 2005.
CHAPMAN DAVIS LLP
Chartered Accountants
2 Chapel Court
London SE1 1HH
Consolidated Profit and Loss Account (Unaudited)
For the period from Incorporation on 2nd February 2005 to the 30th September
2005
Notes #'000
Administrative expenses (117)
Operating Loss (117)
Interest received 41
LOSS ON ORDINARY ACTIVITIES BEFORE TAX (76)
Taxation 2 -
LOSS ON ORDINARY ACTIVITIES AFTER TAX (76)
Loss per share : 4
Basic (0.028) pence
Diluted (0.028) pence
Consolidated Balance Sheet (Unaudited)
At 30th September 2005
Notes #'000 #'000
FIXED ASSETS
Intangible asset 5 30,500
Plant and equipment 6
TOTAL FIXED ASSETS 30,506
CURRENT ASSETS
Cash at bank 4,584
Receivables 30
TOTAL CURRENT ASSETS 4,614
CREDITORS: Amounts falling due within one year (205)
______
NET CURRENT ASSETS 4,409
______
NET ASSETS 34,915
CAPITAL AND RESERVES
Called up share capital 543
Share premium 4,748
Merger reserve 6 29,700
Profit and loss account (76)
______
SHAREHOLDERS' EQUITY FUNDS 34,915
______
Consolidated Cash Flow Statement (Unaudited)
For the period from Incorporation on 2nd February 2005 to 30th September 2005
#'000
CASH OUTFLOW FROM OPERATING ACTIVITIES (88)
Capital expenditure and financial investment (420)
______
CASH OUTFLOW BEFORE FINANCING (508)
Net proceeds of financing 5,092
______
INCREASE IN CASH IN PERIOD 4,584
Notes to the Interim Report
For the period ending 30th September 2005
1. PRESENTATION OF INTERIM RESULTS
This interim report was approved by the Directors on 22nd December 2005. The
interim results have not been audited, but were the subject of an independent
review carried out by the Company's auditors, Chapman Davis LLP. Their review
confirmed that the figures were prepared using applicable accounting policies
and practices consistent with those to be adopted in the annual report. The
financial information contained in this interim report does not constitute
statutory accounts as defined by Section 240 of the Companies Act 1985. A copy
of this interim report can be obtained from the Company's registered office at
55 Gower Street, London WC1E 6HQ.
2. TAXATION
No taxation has been provided due to losses in the period.
3. DIVIDENDS
The Directors do not recommend the payment of a dividend.
4. LOSS PER SHARE
The basic loss per share is derived by dividing the loss for the period
attributable to ordinary shareholders by the weighted average number of shares
on issue.
#'000
Loss for the period (76)
Weighted average number of shares 273.4 million
Loss per share - basic (0.028) pence
Weighted average number of shares inclusive of outstanding dilutive options 275 million
Diluted Loss for the period (0.028) pence
5. INTANGIBLE ASSET
The Intangible Asset is in respect of the Project of Western Consolidated Nickel
Pty Limited.
#'000
Fair value uplift 30,021
Associated costs of acquisition 96
Deferred evaluation expenditure 383
______
Intangible Asset - Project 30,500
6. MERGER RESERVE
The Merger Reserve is in respect of the acquisition of Western Consolidated
Nickel Pty Limited for the consideration of the issue of 300 million ordinary
shares at a deemed value of 10 pence per share.
#'000
Issue of 300,000,000 shares at 10 pence per share 30,000
Less: Called up share capital at 0.1 pence per share 300
______
Merger Reserve 29,700
DIRECTORS REGISTERED OFFICE NOMINATED ADVISOR AND BROKER
David James Humann Third Floor Nabarro Wells & Co Limited
Christopher Walter Lambert 55 Gower Street Saddlers House
Clayton John Dodd LONDON WC1E 6HQ Gutter Lane
David Anthony Lenigas LONDON EC2V 6HS
Michael Elias
Anthony John Samaha AUDITORS REGISTRARS
Chapman Davis LLP Share Registrars Limited
SECRETARY 2 Chapel Court Craven House
LONDON SE1 1HH West Street
Stephen Frank Ronaldson Farnham
SURREY GU9 7EN
SOLICITORS
Ronaldsons
55 Gower Street
LONDON WC1E 6HQ
This information is provided by RNS
The company news service from the London Stock Exchange
END
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