Final Results
June 30 2005 - 3:00AM
UK Regulatory
RNS Number:2177O
Central African Gold PLC
30 June 2005
Central African Gold plc
Results for the year ended 31 December 2004
Chairman's statement
This is my first full year report to shareholders since the Company was admitted
to AIM on 26th March 2004 having raised #1,003,000 net of expenses. We have made
good progress through our controlling 53% interest in Golden Tau Mining Ltd ('
Golden Tau'), which we acquired in May 2004 for a cash consideration of
A$604,000 (#237,291) before expenses.
Golden Tau owns the exploration rights over an 872 sq km area of the Kraaipan
Greenstone Belt in southern Botswana. The licences, granted by Botswana's
Department of Mineral and Energy, cover all precious metals though the Company
will primarily concentrate its activities on gold exploration.
As reported in my interim statement, the Kraaipan Greenstone Belt is directly
along strike from significant gold deposits in South Africa, including the
well-known Goldridge deposit, which has over 4.0 million ounces of gold to 150
metres depth. However, many areas of the Kraaipan Greenstone Belt have been
identified as being inadequately tested. This is in spite of the area having
significant mineralization including mining operations as well as strong surface
encouragement for gold mineralization. Significantly, the areas staked by
Golden Tau are similar to those that host the renowned gold deposits of the
Eastern Goldfields of Western Australia. The Board therefore believes that the
area under licence potentially houses significant gold deposits.
Over the reporting period, work carried out by Golden Tau on the Kraaipan
project involved literature research, the acquisition and reprocessing of
existing airborne magnetic information and the analysis of existing landsat data
as well as drilling and soil geochemical data gathered by Reunion Mining Plc ('
Reunion'). On the ground, a helicopter Versatile Time-Domain Electro Magnetic ('
VTEM') survey, geological and geophysical interpretation and Reverse Circulation
('RC') drilling have taken place. A ground Electro Magnetic ('EM') survey to
better define the VTEM anomalies is currently in progress.
Previous airborne magnetic programmes flown by Reunion and the Geological Survey
of Botswana were reprocessed and an array of images plotted for Golden Tau by
Southern Geoscience Consultants Pty Ltd (SGC) in Perth Western Australia. These
were used as the basis for aeromagnetic interpretation and target generation.
A helicopter borne time domain EM survey comprising 520 line km was flown over a
total area of 174 km2 of the Kraaipan tenement area in August 2004 by Geotech
Ltd. Line spacing was 100m in the southern portion of the tenement over the
Reunion area and 500m spacing further to the north. Less than 20% of the total
area was flown in detail. The VTEM survey was primarily aimed at testing for
buried conductors related to sulphide bearing banded iron formations which are
commonly associated with gold deposits in the Southern Cross greenstone belt in
Western Australia. Conductors related to massive sulphides in VMS and nickel
deposits were also regarded as possible targets for the EM survey.
SGC carried out a geological and geophysical interpretation of the airborne
magnetic and EM data in the light of its extensive experience with Western
Australian greenstone belts. SGC's geological interpretation of the Kraaipan
area generated 50 geological/structural targets based on established geological
models for mineralization in equivalent greenstone belts elsewhere. Some
reversely magnetised BIF and intrusives were also interpreted from the magnetic
data as were several discrete magnetic anomalies which are possible kimberlite
intrusives. Interpretation of the VTEM data generated 46 conductors (ie.
potential sulphides) for follow up.
An RC drilling programme to test some of the VTEM conductors in the southern
portion of the Kraaipan area commenced in late 2004 and was completed in 2005.
Drilling was carried out by R.A. Longstaff Pty Ltd with field management by MPH
Consulting Pty Ltd. Seven holes were drilled for a total of 1025m. Slow progress
and very high drilling costs due to the inability to retrieve steel casing
resulted in an earlier than planned termination of the programme and hence only
three EM targets (KB 13, 14 & 21) were tested.
KB14 was tested by a fence of three inclined holes (KRC05-002 to 004) spaced 50m
apart. KB21 was tested by three inclined holes (KRC04-001, 002 & KRC05-001)
spaced 100m apart. A third conductor (KB13) to the west of KB14 was tested by a
single inclined drill hole (KRC05-005). The most promising EM targets have yet
to be drilled. 190 2m to 3m composite drill chip samples were dispatched to the
Genalysis laboratory in Johannesburg for sample preparation and forwarded to
their Perth laboratory for analysis of Au by fire assay/AAS and Ag, As Cu, Ni,
Pb & Zn by aqua regia digest/AAS. We are still awaiting these laboratory
results.
We remain committed to locating other gold projects in Southern Africa and are
actively pursuing a number of interesting opportunities. We are applying for
further concession in Botswana and are in advanced negotiations over properties
in Mozambique. We want to build Central African Gold into a significant gold
exploration and production company and feel that we are gaining recognition in
the region which will enable us to achieve this.
During the year we completed a #500,000 fundraising programme to finance the
expansion of our exploration activities, fund project acquisitions and provide
general working capital. We placed 2.7 million new Ordinary Shares of 0.1p each
at a price of 7 pence per share and 4.5 million new Ordinary Shares of 0.1p each
at a price of 7.5 pence per share, with European institutions. Importantly, by
building up significant cash reserves, we can increase our flexibility when
negotiating deals, which will help us to expand our gold exploration in Southern
Africa.
For the twelve month period ending 31st December 2004 we are reporting a pre and
post tax loss of #116,108 and a cash position of #1,436,502.
Philippe Edmonds
Chairman
Consolidated profit and loss account for the period ended 31 December 2004
Notes 26 November 2003
to
31 December
2004
#
TURNOVER -
Operating expenses (123,257)
OPERATING LOSS (123,257)
Interest receivable 7,149
LOSS ON ORDINARY ACTIVITIES BEFORE TAXATION (116,108)
Taxation -
LOSS ON ORDINARY ACTIVITIES AFTER TAXATION (116,108)
Minority interests 632
LOSS FOR THE FINANCIAL PERIOD (115,476)
LOSS PER ORDINARY SHARE
Basic and diluted 3 (0.094p)
The operating loss for the period arises from the group's continuing operations.
Consolidated statement of total recognised gains and losses for the period ended
31 December 2004
26 November 2003
to 31 December
2004
#
Loss for the financial period (115,476)
Foreign currency translation adjustments relating to subsidiary undertakings 4,815
Total recognised gains and losses for the period (110,661)
Consolidated balance sheet at 31 December 2004
#
FIXED ASSETS
Intangible assets 179,823
CURRENT ASSETS
Debtors 67,254
Cash at bank and in hand 1,436,502
1,503,756
CREDITORS: Amounts falling due within one year (52,845)
NET CURRENT ASSETS 1,450,911
TOTAL ASSETS LESS CURRENT LIABILITIES 1,630,734
CAPITAL AND RESERVES
Called up share capital 165,743
Share premium account 1,459,793
Profit and loss account (110,661)
EQUITY SHAREHOLDERS' FUNDS 1,514,875
Minority interests 115,859
1,630,734
Consolidated cash flow statement for the period ended 31 December 2004
Notes 26 November 2003
to 31 December
2004
#
Cash outflow from operating activities 4a (133,256)
Returns on investments and servicing of finance 4b 7,149
Capital expenditure and financial investment 4b (55,046)
Acquisitions and disposals 4b (7,881)
CASH OUTFLOW BEFORE FINANCING (189,034)
Management of liquid resources 4b (168,007)
Financing 4b 1,625,536
INCREASE IN CASH IN THE PERIOD 1,268,495
RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS
26 November 2003
to 31 December
2004
#
Increase in cash in the period 1,268,495
Cash outflow from increase in liquid resources 168,007
NET FUNDS AT 31 DECEMBER 2004 4c 1,436,502
Notes to the accounts
1. Financial information
The financial information for the year ended 31 December 2004 have been
extracted from the Company's audited accounts which have not yet been filed
with the UK Registrar of Companies. The Financial Information does not
constitute the Company's statutory financial statements within the meaning
of S240 of the Companies Act 1985. There is no comparative information as
the Company was incorporated on 26 November 2003.
2. Basis of preparation
The financial statements have been prepared under the historical cost
convention and in accordance with applicable accounting standards.
There is no comparative period as the Company was incorporated in November
2003.
3. Loss per share
The calculation of basic and diluted loss per ordinary share is based on
the following losses and number of shares.
26 November 2003 to
31 December
2004
#
Loss for the financial period (115,476)
2004
No. of shares
Weighted average number of shares 122,387,988
Due to the loss incurred in the period, there is no dilutive effect from the
issue of share options and warrants.
4. Cash flows
2004
#
a Reconciliation of operating loss to net cash outflow from
operating activities
Operating loss (123,257)
Increase in debtors (67,161)
Increase in creditors 48,088
Exchange rate adjustments 9,074
Net cash outflow from operating activities (133,256)
b Analysis of cash flows for headings netted in the cash flow 2004
#
Returns on investments and servicing of finance
Interest received 7,149
Net cash inflow from returns on investments and servicing of finance 7,149
Capital expenditure and financial investment
Purchase of intangible fixed assets (55,046)
Net cash outflow from capital expenditure and financial investment (55,046)
Acquisitions and disposals
Purchase of subsidiary undertaking (246,060)
Cash acquired with subsidiary 238,179
Net cash outflow from acquisition and disposals (7,881)
Management of liquid resources
Cash placed on deposit (168,007)
Net cash outflow from management of liquid resources (168,007)
Financing
Proceeds from issue of share capital 1,732,000
Share issue costs (106,464)
Net cash inflow from financing 1,625,536
At 31 December 2004
#
c Analysis of net funds
Cash at bank and in hand 1,268,495
Cash on deposit 168,007
1,436,502
5. Availability of accounts
Copies of the audited financial statements are being posted to shareholders
on 30 June 2005 and will be available at 18 Upper Brook Street, London W1K
7PU until 31 July 2005.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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