Final Results
March 01 2006 - 3:01AM
UK Regulatory
Central China Goldfields plc
("GGG"or "the Company")
1 March 2006
Results for the period ending 31st December 2005
FINANCIAL RESULTS:
Successful AIM listing on 30 March 2005
Successful GBP2.0 million placing completed in March 2005 (in addition to the
GBP 0.6 pre-IPO in 2004)
Losses for the period were GBP470,511
Net assets at the year end were GBP1.39 million
OPERATIONAL HIGHLIGHTS:
The exploration programme in the Snow Mountain Project focused on data
validation and confirmation and the identification of new zones of
mineralisation to grow it into a multi-million ounce gold project.
This work includes re-surveying of locations by GPS, verification of historic
data using fire assays and digitising historical and new data into specialised
geological software.
Over 2,100m of underground tunnels were cleaned and developed and over 3,000m
of trenches cleaned and dug. Over 3,100 rock samples, 2,100 soil samples, 74
high sensitivity BLEG (define) stream sediment samples and 70 kg of
metallurgical samples were taken and analysed.
Additional areas of mineralisation have been identified in the Baima area and
at the Qiaoqiaoshang deposit using geophysical survey, systematic soil survey,
trenching and by underground tunnels.
Prospective targets in the Maqu Block have been identified using a combination
of satellite imageries interpretation and high-sensitivity stream sediment
sampling.
Preliminary metallurgical tests have been conducted to identify possible routes
to increase gold recoveries.
The Company also signed a new Joint Venture over the Xiang Shui Tan property in
Northeast Hubei Province. Exploration in this property targets both the high
grade gold-silver veins (average 9.3 g/t Au equivalent) and the porphyry -
skarn gold - base metal target which potentially underlies the area.
The Company is aggressively pursuing additional joint venture opportunities
within China and this year we have visited nine operational mines and reviewed
numerous exploration projects.
Chairman Nigel Clark commented: "Central China Goldfields is extremely well
positioned to take advantage of the China opportunity given its experienced
staff, its current high quality prospects and its financial ability to explore
and acquire new properties."
ENDS
Chairman's Statement and Financial Statements follow.
For Further information please contact:
Central China Goldfields plc Nominated Advisor:
Dr. Jeffrey Malaihollo Ruegg & Co Limited
Tel: 020 7621-0200 Brett Miller
Email: info@ccgoldfields.com Tel: 020 7584-3663
www.ccgoldfields.com
Public Relations: Brokers:
Parkgreen Communications Westhouse Securities LLP
Richard Morrison / Cailey Barker
Victoria Thomas / Justine Howarth Tel: 020 7601 6100
Tel: 020 7493-3713
King & Shaxson Capital Limited
Nick Bealer
Tel: 020 7426-5986
CENTRAL CHINA GOLDFIELDS PLC
CHAIRMAN'S STATEMENT AND REVIEW
Dear Shareholder,
Much of success comes from being in the right place at the right time with the
right offer. There is no doubt in my mind that the right place is China and the
right time is now. China has had huge influence on commodity markets in the
recent past and given its projected growth will continue to do so in the
future. Central China Goldfields (GGG) is extremely well positioned to take
advantage of the China opportunity given its experienced staff, its current
high quality prospects and its financial ability to explore and acquire new
properties.
Our vision is to make Central China Goldfields plc one of the premier mining
and exploration companies in China. Our strategy is to achieve this through
exploration and acquisition of high quality projects.
Central China Goldfields plc was formed on 3 November 2004 to acquire Nexon
Asia Group Ltd which has a Joint Venture with the Sichuan Bureau of Metallurgy
and Geological Exploration ("SBMGE") over the Snow Mountain area (in Sichuan
Province, Central China) which is prospective for Carlin-type gold deposits.
The Company acquired the whole share capital of Nexon on 23 December 2004.
Using the Snow Mountain Project as a basis, GGG raised GBP0.6million in pre-IPO
and GBP2million in IPO. On 30 March 2005 the Company's shares and warrants were
admitted to trading on AIM and this injection of capital has enabled the
Company to grow both through exploration and the acquisition of new projects.
Field exploration in the Snow Mountain Project started in April 2005 and the
results of this season will be detailed in the annual report. In summary, the
exploration programme verified the work conducted by our partner the SBMGE and
in the process also identified new zones and areas of mineralisation. The
Company also signed a new Joint Venture agreement on a high grade
gold-silver-base metal project in Hubei Province.
The Group, therefore, now has two main projects: Snow Mountain in Sichuan
Province and Xiang Shui Tan in Hubei Province, with a combined inferred
resource (not to international standard) of close to 1.2 million ounces of gold
and 4 million ounces of silver. The Company's exploration work indicates that
there is potential to substantially grow the resources.
During this year the organization has grown to eight full time employees in
China, all of whom are employed by the Chinese joint venture company. The Group
has five directors, two executive and three non-executive. All directors,
except the Chairman, are based in London. The Managing Director in London is
supported by the Exploration Manager and Project Manager, both based in China,
and one administrative person in London.
The Company is aware of its corporate governance and social responsibilities.
In the field it has set up health and safety training and records any near
accidents. It has trained its staff in the use of specialist geological and
accounting software and has regular English language training for its entire
staff in China. It has also worked closely with local Government and local
communities and has supported local schools by purchasing computers and books.
The Company believes in transparency and the continuous disclosure of results.
It regularly updates investors of the Company's progress through news releases
and via the website.
Members of the Board live in both the United Kingdom and China, and often
travel. We meet regularly by teleconference and have regular email and
telephone communications. Corporately, audit and remuneration committees have
been set up and are functioning.
2005 was a year of major progress with new capital injection and exploration
work starting in earnest. The Company now has a solid foundation and with
further forward momentum we are confident that we will achieve our vision and
strategy. We are well positioned as a dynamic, entrepreneurial exploration
company with great credentials.
2006 will be an exciting year for your Company. This year we want to both
increase the current resources by drilling and opening underground tunnels and
at the same time use the contacts and networks in China which we have been
developing over many years, to add high quality projects to the portfolio.
By the end of this year the Company should be in a position to assess mining
suitability in the Baima area and at the Qiaoqiaoshang deposit and apply for
more exploration licences in the Maqu region.
At Xiang Shui Tan the Company should be able to confirm the resources defined
by our joint venture partner and assess the potential for porphyry/skarn type
mineralisation at depth.
I am fortunate to have been re-elected as Chairman of the China International
Mining Group again for 2006. The CIMG is an informal association running under
the authority of the China-Australia Chamber of Commerce and is engaging with
the Chinese Authorities on mining and taxation law and safety and environmental
initiatives for the benefit of the mining industry. This is of course a great
benefit to GGG which is also one of the members of the CIMG.
In closing, on behalf of the Board of Directors, I would like to thank all of
our employees for their hard work over the past year and all of our investors
for the trust and confidence you have given to the Directors.
Nigel Clark
Beijing March 2006
CENTRAL CHINA GOLDFIELDS PLC
PROFIT AND LOSS ACCOUNT
PERIOD FROM 3 NOVEMBER 2004 TO 31 DECEMBER 2005
Period from
3 Nov 2004 to
31 Dec 2005
GBP
GROUP TURNOVER -
Administrative expenses (532,127)
OPERATING LOSS (532,127)
Interest receivable and similar income
61,616
LOSS ON ORDINARY ACTIVITIES BEFORE TAXATION (470,511)
Tax on loss on ordinary activities -
LOSS FOR THE FINANCIAL PERIOD (470,511)
CENTRAL CHINA GOLDFIELDS PLC
GROUP BALANCE SHEET
31 DECEMBER 2005
31 Dec 05
GBP GBP
FIXED ASSETS
Intangible assets 638,255
Tangible assets 727
638,982
CURRENT ASSETS
Debtors
14,245
Cash at Bank 1,399,611
1,413,856
CREDITORS: Amounts falling
due within one year 25,285
NET CURRENT
ASSETS 1,388,571
TOTAL ASSETS LESS CURRENT LIABILITIES 2,027,553
CAPITAL AND RESERVES
Called-up equity share capital 522,450
Share premium account 1,975,614
Profit and loss account (470,511)
SHAREHOLDERS' FUNDS 2,027,553
CENTRAL CHINA GOLDFIELDS PLC
GROUP CASH FLOW
PERIOD FROM 3 NOVEMBER 2004 TO 31 DECEMBER 2005
Period from
3 Nov 04
to 31 Dec 05
GBP GBP
NET CASH OUTFLOW FROM OPERATING ACTIVITIES (517,992)
RETURNS ON INVESTMENTS & SERVICING OF FINANCE
Interest received 61,616
CAPITAL EXPENDITURE
Payments to acquire intangible
fixed assets (640,938)
Payments to acquire tangible
fixed assets (1,139)
NET CASH OUTFLOW FROM CAPITAL
EXPENDITURE (642,077)
CASH OUTFLOW BEFORE FINANCING (1,098,453)
FINANCING
Issue of equity share capital 522,450
Share premium on issue of equity
share capital 2,226,996
Share issue costs (251,382)
NET CASH INFLOW FROM FINANCING 2,498,064
INCREASE IN CASH 1,399,611
RECONCILIATION OF OPERATING LOSS TO NET CASH OUTFLOW FROM
OPERATING ACTIVITIES
Period from
3 Nov 04 to
31 Dec 05
GBP
Operating loss (532,127)
Amortisation of goodwill 2,683
Depreciation 412
(Increase) in debtors (14,245)
Increase in creditors 25,285
Net cash outflow from operating activities (517,992)
END
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