Central China Goldfields plc
("Central China" or the "Company")
27 September 2007
Central China Goldfields plc, (AIM: GGG), the mineral exploration and
development company operating in China, reports its unaudited results for the
six months ended 30 June 2007.
Operational highlights:
* Completed the first phase of scout drilling at the Tinggong Licence
(2,979m) and initiated scout drilling at Gangjiang licence (1,200m+), at
the Nimu copper project in an area of approximately 45km2.
* Commissioned a scoping study for the Baima area (Song Pang Guo and Shiu Niu
Jia deposits) at the Snow Mountain gold project.
* Continued to evaluate a substantial pipeline of potential projects offered
by third parties with emphasis on producing or near producing assets.
* Cash of GBP 3.16 million and investment worth GBP 0.59 million.
Since 30 June:
* At Nimu we discovered two areas of significant higher grade
copper-molybdenum mineralisation in Gangjiang and initiated geophysical
work in the Gangjiang and Bairong Licences to delineate additional targets
* Commenced geophysical work at the Dong Mao Huo gold mine which indicates
more widespead signs of possible mineralisation in the area of the mine and
began a reverse circulation drill programme to test the known
mineralisation and geophysical anomalies. Initial drilling results are
encouraging.
Nigel Clark, Chairman of Central China Goldfields, commented:
"Central China Goldfields was very active during the first half of the year,
and we have made progress in all areas. The professional dedication of our
staff and our focussed strategy are providing the essential ingredients for
success in this competitive environment and I am very proud to be part of this
team."
Enquiries, please contact:
Central China Goldfields plc Hanson Westhouse Limited
Dr. Jeffrey Malaihollo Louis Castro / Anita Ghanekar
Tel: 020 7621 0200 Tel: 020 7601 6100
Email: info@ccgoldfields.com
www.ccgoldfields.com
Smithfield Consultants King & Shaxson Capital Limited
Neil Boom / Rupert Trefgarne Nick Bealer
Tel: 020 7360 4900 Tel: 020 7426 5986
Chairman's statement
I am pleased to report interim results for the six months to 30 June 2007.
Again, it has been a very intensive period in the development of your Company,
during which much encouraging progress was accomplished.
In the past six months we concentrated on progressing all of our projects as
much as possible, but particularly the Nimu copper and the Dong Mao Huo gold
projects. Dong Mao Huo is our best chance to provide early cash flow and Nimu
is our best chance to create significant value.
Geophysical surveys (IP and resistivity) at Dong Mao Huo suggest that the
mineralised areas are more widespread than previously thought. The mine shows a
positive IP response and several similar IP responses have been identified in
the two surrounding exploration licences. Initial drilling results confirmed
the presence of gold mineralisation along strike east of the mine, although the
geological control on the mineralisation requires further investigation.
Nimu is a large prospective area of low grade copper mineralisation. Our task
is to find pockets of high-grade copper-molybdenum concentrations. So far we
have discovered two areas where there is a high concentration of
copper-molybdenum mineralisation. These two areas, which we believe may be
connected, are:
* Guqing, an area of about 2 km in length and 0.5 km - 1 km in width; and
* Gelong, about 2 km north of Guqing, which is about 2 km in length and 1 km
in width.
We are now conducting further geophysical surveys (ground magnetic, IP and
resistivity) to identify additional targets in this highly mineralised area.
Going forward we will be looking at all options for continued exploration of
the targets and planning our future work programme accordingly.
The initial scoping study on the Baima prospects at the Snow Mountain Project
indicates that additional resources may be needed to improve the economics of
the project and we have continued to liaise with the local authorities to
support drilling of the Qiao Qiao Shang prospect. We will plan our future
exploration strategy around this.
We will also assess the progress of the De Ming Ding Project in light of
experience gained at Nimu.
In addition, we are assessing other production and near production
opportunities from a long pipeline of submittals. This year alone we have
visited nineteen of such opportunities.
The rich blend of skills and experience we have assembled in our team is being
applied cost-effectively to advance all our projects, and we believe that
Central China's substantial pipeline of opportunities is second to none due to
the excellent relationships and contacts forged over many years. Additional
projects will be carefully selected to ensure that they integrate into Central
China's portfolio and have the best chance of adding value.
In closing, I would like to take this opportunity to thank all the board and
staff members throughout our various activities in China and London, for their
dedication and contribution to date. It is their hard work that has accelerated
the development of the Company and is propelling us to a successful future.
Nigel Clark, Chairman
Beijing 27th September, 2007
CENTRAL CHINA GOLDFIELDS PLC
CONSOLIDATED INCOME STATEMENT
Six months ended 30 June 2007
Six months Six months
ended ended
30 June 30 June
2007 2006
� �
Administrative expenses (499,421) (289,480)
Provision for loss on
marketable securities (93,432)
Stock Option Expense (240,000) (135,000)
-------- --------
OPERATING LOSS (832,853) (424,480)
Investment
revenues -
interest on bank deposits 74,011 30,597
-------- --------
LOSS BEFORE TAX (758,842) (393,883)
Tax - -
-------- --------
LOSS FOR THE
FINANCIAL
PERIOD (758,842) (393,883)
========= ========
ATTRIBUTABLE TO THE EQUITY
HOLDERS OF THE PARENT (758,842) (393,883)
======== ========
LOSS PER SHARE 0.007 0.006
All of the activities of the group are classed as continuing.
The group has no recognised gains or losses other than the results for the
period as set out above in the consolidated income statement. Accordingly, a
statement of recognised income and expense is not presented.
The company has taken advantage of section 230 of the Companies Act 1985 not to
publish its own Profit and Loss Account.
STATEMENT OF CHANGES IN EQUITY
Six months Six months
ended ended
30 June 30 June
2007 2006
� �
Opening Balance 7,035,881 2,027,553
Loss for Financial
Period (758,842) (393,883)
Warrants Exercised
for cash 58,829 277,099
Premium on
Warrants Exercised 529,456 1,966,501
Translation Reserve (192,741) -
Cost ofShare
Options Granted 240,000 135,000
-------- --------
Closing Balance 6,912,583 4,012,270
========= =========
CONSOLIDATED BALANCE SHEET
30 June 2007
30 Jun 31 Dec
2007 2006
ASSETS � �
Non-current Assets
Intangible
Assets 3,190,562 2,251,078
Tangible Assets 1,484 1,961
--------- -------
3,192,046 2,253,039
Current Assets
Trade & Other
Receivables &
Prepayments 18,883 906,810
Marketable Securities 593,556 -
Cash & Cash
Equivalents 3,165,439 4,013,417
------------ -----------
3,777,878 4,920,227
LIABILITIES
Current
Liabilities (57,341) (137,385)
---------- ---------
Net Current Assets 3,720,537 4,782,842
--------- ----------
NET ASSETS 6,912,583 7,035,881
========= ==========
EQUITY
Share Capital 1,201,819 1,142,990
Share Premium 7,405,092 6,758,779
Translation Reserve (192,741) -
Share Option Reserve 494,079 254,079
Share Warrant Reserve 530,362 647,219
Retained Losses (2,526,028) (1,767,186)
-------- --------
EQUITY ATTRIBUTABLE TO
EQUITY HOLDERS OF THE
PARENT 6,912,583 7,035,881
========== ===========
GROUP CASH FLOW
Six months Six months
ended ended
30 June 30 June
2007 2006
� �
Operating Loss (832,853) (424,480)
Depreciation 477 190
Amortisation 1,239 -
Provision for
Loss on Marketable
Securities 93,432 -
Stock Option
Expense 240,000 135,000
Change in
Receivables
and other current assets 887,927 (60,444)
Change in Payables (80,044) (1,690)
-------- --------
NET CASH USED IN
OPERATING ACTIVITIES 310,178 (351,424)
-------- ---------
INVESTING
ACTIVITIES
Investment in
Marketable Securities (686,988)
Purchase of Property,
Plant & Equipment - -
Purchase of Other
Intangible Assets (1,133,464) (505,666)
Interest Received 74,011 30,597
--------- -----------
NET CASH USED IN
INVESTING ACTIVITIES (1,746,441) (475,069)
FINANCING
ACTIVITIES
Proceeds on Exercise
of Warrants 588,285 2,243,600
--------- --------
NET CASH FROM
FINANCING ACTIVITIES 588,285 2,243,600
---------- ----------
NET(DECREASE)/
INCREASE IN CASH
& CASH EQUIVALENTS (847,978) 1,417,107
CASH & CASH
EQUIVALENTS AT
BEGINNING OF PERIOD 4,013,417 1,399,611
-------- --------
CASH & CASH
EQUIVALENTS AT
END OF PERIOD 3,165,439 2,816,718
========== =========
CENTRAL CHINA GOLDFIELDS PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS TO JUNE 30TH 2007
1. ACCOUNTING POLICIES
These interim financial statements do not constitute statutory financial
statements within the meaning of Section 240 of the Companies Act 1985. A copy
of the statutory accounts for the year ended 31 December 2006 has been delivered
to the Registrar of Companies. The auditors' report on those accounts was not
qualified and did not contain statements under Section 237(2) or (3) of the
Companies Act 1985.
These interim financial statements have been prepared in accordance with
International Financial Reporting Standards (IFRS). The comparative balances for
June 2006 have been restated to reflect the adoption of IFRS effective January
1,2006 ( Refer to Note 4)
Results for the six-month period ended 30 June 2007 have not been audited.
Copies of the interim results for the six months ended 30 June 2007 are being
sent to all shareholders. A copy can also be found on the Company's website at
www.ccgoldfields.com
2. LOSS PER SHARE
IAS requires presentation of diluted earnings per share when a company could be
called upon to issue shares that would decrease net profit or increase net loss
per share. For a loss making company with outstanding share options, net loss
per share would only be increased by the exercise of out-of-money options. Since
it seems inappropriate to assume that option holders would exercise out-of-money
options, no adjustment has been made to diluted loss per share for out-of-money
share options.
The calculation of basic and diluted loss per ordinary share is based on the
loss of �758,842 for the six months ended 30 June 2007 (30 June 2006: � 393,883)
and on 116,254,000 ordinary shares (30 June 2006: 62,199,000) being the weighted
average number of ordinary shares in issue.
3. SHARE CAPITAL
30 Jun 30 Jun
2007 2006
� �
Authorised share capital
500,000,000 ordinary shares
of 1 pence each 5,000,000 5,000,000
Called up, allotted and fully paid
Ordinary shares of 1 pence each
No. � No. �
120,181,873 1,201,819 79,954,900 799,549
During the six months ending 30 June 2007, 5,882,848 warrants were exercised for
proceeds of �588,285 and the same number of ordinary shares were issued.
4. ADOPTION OF INTERNATIONAL FINANCIAL REPORTING STANDARDS
As at As at As at
31 Dec 2006 30 Jun 2006 01 Jan 2006
�000's �000's �000's
Net assets and
equity under
UK GAAP 7,035,881 4,012,270 2,027,553
Adjustments
(after
taxation)
IFRS 2 Share Based
Payments
Share option reserve 126,079 128,000
Increased Loss
for the period (135,000)
Share Warrant
Reserve (89,781) (448,000) 1,185,000
Share Premium 89,781 456,921 (1,185,000)
Retained Losses (128,000)
--------- ---------- ----------
Net assets and
equity under IFRS 7,035,881 4, 012,270 2,027,553
============== ============== ==============
the year six months
ended ended
31 Dec 2006 30 Jun 2006
�000's �000's
Net income
under UK GAAP (1,033,675) (258,883)
Adjustments
(before
taxation)
IFRS 2
Share Based Payments
(135,000) (135,000)
--------- -----------
(1,168,675) (393,883)
============== ==============
a) IFRS 2 Share Based Payments
Previously share based payments such as share options were disclosed but no
adjustment made to the income statement. Under IFRS 2 a fair value must be
attached to any such payment and expensed (share options) or capitalised (share
warrants issued in connection with financings) accordingly.
END
GGG Resources (LSE:GGG)
Historical Stock Chart
From Jun 2024 to Jul 2024
GGG Resources (LSE:GGG)
Historical Stock Chart
From Jul 2023 to Jul 2024