Final Results
November 23 2004 - 2:00AM
UK Regulatory
RNS Number:5198F
Conroy Diamonds & Gold PLC
23 November 2004
Conroy Diamonds and Gold P.l.c.
Final Results for the year ended 31 May 2004
Chairman's Statement
Dear Shareholder
I have great pleasure in presenting your Company's Annual Report and Financial
Statements for the twelve months ended May 31, 2004, a period of considerable
success during which exploration programmes in Ireland and Finland made solid
progress. On the gold front, your Company has evolved from pure exploration to
assessment and evaluation as a result of this progress.
A further fillip has been received since year-end with the positive findings by
internationally respected SRK Consulting in its report on your Company's Irish
exploration licences. It says there is ample evidence to support your Company's
belief in finding more than 1m oz of gold within its Irish licences, with one
small, closely-drilled area alone having the potential to contain more than
100,000oz to a depth of less than 150m. Much larger anomalies covering 200 times
the size of this drilled area are considered by SRK to have far better potential
to contain deposits capable of supporting commercial mining operations.
Furthermore, SRK concurs with your Company's broad-based approach to exploration
and recommends that it should continue. By adopting this regional approach your
Company has been able to demonstrate the overall gold potential of the
Longford-Down Massif and has moved well down the road towards identifying a new
gold province there.
In preparing its report, which took six months to complete, SRK analysed and
interpreted all available data on the Massif. One significant outcome was the
identification of three major deep-seated lineaments traversing your Company's
licences. Major economic gold deposits elsewhere in the world are often found on
such lineaments.
The three areas are much larger than those already covered by your Company's
geochemical sampling programmes, and two of the three have been subject to
little exploration by your Company.
The area most favoured by SRK takes in the Armagh-Monaghan Gold Belt and
includes the most closely drilled section, the small anomaly at
Tullybuck-Lisglassan, where gold mineralisation remains open in all directions.
The consultants emphasise, however, that this is just a tiny part of the overall
picture, with much larger anomalies elsewhere yet to be drilled and considered
to have much better potential for mineralisation. Another favoured area lies
just west of the Slieve Glah project in Co Cavan and the third is on a portion
of your Company's licences in Northern Ireland.
The SRK report marks a considerable step forward for your Company. Its positive
conclusion is a boost to your Company's aim of establishing a new gold province.
It also provides a solid base from which to progress, either alone or in joint
venture.
De-merger of Diamond Interests
Since year-end your Company's diamond interests in Finland have been de-merged
into a separate entity, Karelian Diamond Resources plc. Your board were of the
view, having consulted its nominated advisor Seymour Pierce Limited, that the
terms of the transactions were fair and reasonable and were in the best
interests of shareholders as a whole and the Company. The relevant proposals
were duly approved by shareholders at an Extraordinary General Meeting. High
Court permission was sought and granted to enable the Company to effect the
de-merger of the diamond interests through the distribution to the Company's
shareholders of shares in the new diamond company, Karelian Diamond Resources
Plc. The de-merger will be reflected in your Company's accounts by a reduction
in the Share Premium Account.
Finance
During the year the Company raised Euro1,684,447, net of expenses, through the
issue of 25,000,000 new ordinary shares, the details of which are set out in
Note 10 to the accounts. Your directors are considering, in the light of the
recent report from SRK, how your Company will be funded in the future. The
potential and scale of the project, as signalled in the report, would suggest
that the involvement of a major partner might be appropriate at this time.
Auditors
I would like to take the opportunity of thanking the partners and staff of KPMG
for their services to your Company.
Directors, Consultants and Staff
I would like to welcome Mr Michael Power to your board. Mr Power is a mining
engineer with over 30 years industry experience, much of it in gold including
Vice-President Corporate Development at Hemlo Gold mines (which is now part of
Newmont Mining). At Hemlo Gold Mr Power was responsible for initiating,
assessing and negotiating the acquisition of gold mining assets. He played an
important part in the CAN$2bn merger of Hemlo and Battle Mountain in 1996.
I would also like to express my continued appreciation of the support and
dedication of the directors, consultants and staff.
Future Outlook
Your Company can look to the future with confidence. The SRK Report forms a
crucial step in our plans. Your Company's broad based approach to exploration in
the Longford -Down Massif with which SRK concurs has brought us well on the road
to confirming a new gold province. This achievement has been noted in the
industry and its significance in terms of potential value will I am confident
become appreciated in the financial markets in due course and reflected in your
Company's market capitalisation and share price.
Professor Richard Conroy
Chairman
Profit and Loss Account for the Year Ended 31 May 2004
2004 2003
Euro Euro
Operating Expenses (331,321) (342,656)
Other Income 5,595 1,154
--------- ---------
Loss for the Year (325,726) (341,502)
Profit and Loss Account at 1 June (1,433,158) (1,091,656)
--------- ---------
Profit and Loss Account at 31 May (1,758,884) (1,433,158)
======== ========
Loss per ordinary share - Basic and fully diluted (Euro0.006) (Euro0.013)
Balance Sheet - 31 May 2004
2004 2003
Euro Euro
Fixed Assets
Mineral interests 6,202,068 5,198,758
Tangible assets 54,482 56,814
Financial assets 2 -
------------ -----------
6,256,552 5,255,572
------------ -----------
Current Assets
Debtors 45,046 4,919
Cash at bank and in hand 517,862 302,835
---------- -----------
562,908 307,754
Creditors: Amounts falling due within one year (1,028,342) (1,127,929)
------------ ----------
Net Current Liabilities (465,434) (820,175)
---------- ----------
Net Assets Euro5,791,118 Euro4,435,397
======= =======
Capital and Reserves
Called up share capital 1,846,320 1,096,320
Capital Conversion Reserve Fund 30,617 30,617
Share premium account 5,673,065 4,741,618
Profit and loss account (1,758,884) (1,433,158)
------------ -----------
Shareholders' Funds - all equity Euro5,791,118 Euro4,435,397
======== ========
Cash Flow Statement for the Year Ended 31 May 2004
2004 2003
Euro Euro
Net Cash Outflow from Operating Activities (444,490) (239,552)
Capital Expenditure and Financial Investments (1,026,190) (957,466)
---------- ----------
Net Cash Outflow before Financing (1,470,680) (1,197,018)
Financing 1,685,707 1,291,304
---------- ----------
Increase in Cash Euro215,027 Euro94,286
========= ==========
This information is provided by RNS
The company news service from the London Stock Exchange
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