Interim Results
September 30 2004 - 10:00AM
UK Regulatory
RNS Number:5367D
Central African Gold PLC
30 September 2004
Central African Gold Plc: Ticker: CAN / Index: AIM / Sector: Exploration
CENTRAL AFRICAN GOLD PLC
INTERIM RESULTS
Central African Gold Plc ('CAG' or 'the Company'), the AIM listed mining and
exploration company, announces its results for the six months ended 30th June
2004.
CHAIRMAN'S STATEMENT
It gives me great pleasure to report our maiden set of interim results and
inform our shareholders of the progress being made at CAG. The Company was
established to identify and acquire projects in the natural resource sector with
particular emphasis on gold projects. It listed on the AIM market on 26th March
2004 having raised #1,035,000 net of expenses.
Since listing, we having being working hard at identifying suitable projects to
invest in, the first of which was achieved in May 2004, when we acquired a
controlling 53% in Golden Tau Mining Ltd ('Golden Tau') for a cash consideration
of A$604,000 (#237,291.49).
Australian based Golden Tau's strategy is centred on identifying gold deposits
in Archaean Greenstone belts in southern Africa. In line with this, through a
Botswana registered subsidiary, 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.
The Kraaipan Greenstone Belt in Botswana 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.
Importantly there has only been limited exploration in the southern part of
Kraaipan. However, one tenement area staked, contains substantial gold values in
surface rock chip anomalies with best gold values of 50 metres averaging 21.1g/t
Au, 50 metres averaging 8.62g/t Au and 100 metres averaging 2.93g/t Au in an
area of no old mine workings. Rock chip sampling of this anomaly returned
results for 1.8 km along strike. Very limited and shallow reconnaissance drill
testing of this anomaly produced a best intersection of five metres averaging
5.12 g/t Au, and five metres averaging 2.29 g/t Au.
Encouragingly, Botswana has a sophisticated mining tradition. The country has
good infrastructure, a transparent mining code and operates under British
commercial, legal and accounting practices. The government is supportive of the
mining sector and actively encourages foreign investment. We are extremely
confident that by initiating a comprehensive exploration programme, we will be
able to locate deposits that will have substantial economic potential.
Golden Tau has significant information on the Kraaipan licences. It has obtained
aeromagnetic data from the government of Botswana, geochemical and drilling data
from previous exploration, new Landsat satellite images and has recently flown a
detailed electromagnetic survey. Currently all the data is being merged and
analysed to select drill targets.
These exploration projects in Botswana fit the goals set by CAG and form part of
a number of gold prospects being pursued in southern Africa, some of which
include operating mines capable of expanding production.
For the six month period ending 30th June 2004 we are reporting a pre and post
tax loss of #38,154 and a cash position of #796,626. We are investing both time
and finance in identifying and acquiring suitable projects, although we are
conscious that we must manage our costs prudently and ensure we are adequately
financed to achieve our corporate objectives.
In line with this, post the reporting period, 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 7.14
million new Ordinary Shares of 0.1p each at a price of 7 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.
Finally, I'd like to thank our staff for their efforts and our shareholders for
their continued support and look forward to a bright future for CAG.
Phil Edmonds
Chairman
PROFIT AND LOSS ACCOUNT
For the period ended 30th June 2004
#
TURNOVER -
Net operating expenses (39,838)
OPERATIONAL LOSS (39,838)
Interest receivable 1,684
Loss on ordinary activities before taxation (38,154)
Taxation -
LOSS ON ORDINARY ACTIVITIES AFTER TAXATION (38,154)
LOSS PER SHARE
Basic and diluted (0.04p)
BALANCE SHEET
As at 30th June 2004
#
FIXED ASSETS
Investments 244,860
CURRENT ASSETS
Debtors 76,380
Cash at bank and in hand 796,626
873,006
CREDITORS: Amounts following due within one year (22,560)
NET CURRENT ASSETS 850,446
NET ASSETS 1,095,306
CAPITAL AND RESERVES
Called up share capital 158,500
Share premium account 944,960
Other reserves 30,000
Profit and loss account (38,154)
EQUITY SHAREHOLDERS' FUNDS 1,095,306
Investments of #244,860 comprise a 53% interest in the called up ordinary share
capital of Golden Tau Mining Limited, a company registered in Australia.
CASH FLOW STATEMENT
For the period ended 30th June 2004
#
Cash outflow from operating activities (93,658)
Returns on investments and servicing of finance 1,684
Acquisitions and disposals (244,860)
CASH OUTFLOW BEFORE FINANCING (336,834)
Financing 1,133,460
INCREASE IN CASH IN THE PERIOD 796,626
NOTES TO THE ACCOUNTS
1. The financial information contained in this unaudited interim report does
not constitute statutory accounts as defined in section 240 of the Company
Act 1985.
2. Basic and diluted loss per share is calculated by reference to the loss for
the financial period of #38,154 and the weighted average number of shares in
issue during the period of 86,958,716.
Issued on behalf of Central African gold Plc by St. Brides Media & Finance Ltd.,
46 Bedford Row, London WC1R 4LR.
Contacts:
Phil Edmonds, Central African Gold Plc, Tel: 0845 108 6060
Hugo de Salis, St. Brides Media & Finance Ltd., Tel: 0207 242 4477
This information is provided by RNS
The company news service from the London Stock Exchange
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