Central China Goldfields plc
("GGG" or "the Company")
Preliminary results for the year ended 31 December 2007
London 27 June 2008 - Central China Goldfields plc (AIM: GGG), a mineral
exploration and development company operating in China, is pleased to announce
its preliminary results for the year ended 31 December 2007.
Operational and Financial Highlights:
* Identified, from drilling and trenching results, two high-grade areas of
copper-molybdenum mineralisation in Gangjiang Licence, Nimu.
* Confirmed the presence of open-pittable, low grade oxide ores in Dong Mao
Huo and in addition discovered the presence of copper-zinc-silver bearing
high-grade gold veins in the sulphide zone underneath.
* Drilled a total of 9,294 metres, comprising of 5,312 metres at Nimu and
3,982 metres at Dong Mao Huo.
* Conducted a total of 104.5 line kilometres of Induced Polarisation
surveys,comprising of 73.5 line kilometres at Nimu and 31 line kilometres
at Dong Mao Huo.
* Completed 72.5 line kilometres of ground magnetic survey at Nimu.
* Analysed a total of 6,827 samples, comprising 3,427 samples from Nimu,
3,111 samples from Dong Mao Huo and 289 samples from other areas.
* Assessed about 40 projects and visited 25 projects.
* Set up operational offices in Lhasa, Nimu County Town and Baotou. Built
core-sheds in Pagu Village (Nimu) and Erliban Village (Dong Mao Huo).
* Paul McGroary appointed as Non-Executive Director.
* Over � 625,000 raised from warrant exercises, including 500,000 warrants
exercised by Chinese managers.
The annual report will be posted to shareholders by the requisite date and will
also be available on the Company's website www.ccgoldfields.com by 30 June
2008.
The AGM of the Company will be held at the Geological Society, Piccadilly,
London at 11am on the 19th August 2008
Chairman's Statement:
Dear Shareholders,
It gives me pleasure to present Central China Goldfields plc's third annual
report. The year 2007 has been a year of growth and consolidation for the
Company. We have made good progress at Nimu, where we discovered significant
copper and molybdenum mineralisation over a large area and to great depths from
surface and also at Dong Mao Huo where we confirmed the presence of oxide gold
and also discovered pods of higher grade gold with copper-zinc mineralisation
beneath the near surface oxidisation.
Whilst turbulent equity markets have affected smaller company valuations, the
Board feels that the company's strategy will create shareholder value by
focusing on developing its portfolio of quality core assets against the
background of a strong market in natural resources.
Going forward 2008 is likely to be a significant year for Central China
Goldfields (GGG) as the company looks to create tangible value atits Dong Mao
Huo near surface gold property and begins resource delineation at Nimu.
China Goldfields (GGG) now has projects which we believe will significantly add
to shareholder value over both the short and longer term. These projects
include a potentially world class copper porphyry at Nimu and the Dong Mao Huo
near-production gold project with potential upside from high-grade gold and
base metal pods.
One of the 2007 highlights for Central China Goldfields was the discovery of
significant copper mineralisation in the Nimu prospect at Gangjiang with one
hole intercepting over 300 metres of significant copper-molybdenum grades
(between 0.4 to 1% copper equivalent) from surface in the Guqing area.
Excellent geophysical results, supported by geological data, have also provided
the sound basis for further drill targets.
It is our belief that Nimu represents a potentially world class deposit and to
compliment that we have accelerated the development of the Dong Mao Huo mine.
During 2007 we conducted detailed geological mapping, geophysical surveys and
drilled 15 reverse circulation and 19 diamond drill holes in Dong Mao Huo. From
this work we have confirmed the presence of areas of low grade, open-pittable
oxide gold and in addition, we have also identified several pods of very high
grade gold-silver-copper-zinc veins, one of which assayed up to 37 grammes per
tonne gold, 275 grammes per tonne silver and 2.75% copper over a 1.9 metres
interval.
At the end of 2007 we also signed a new Joint Venture in the Nileke area of
Xinjiang which covers three producing copper mines and a small processing plant
and began the process of obtaining a business license for the joint venture.
For Central China Goldfields 2008 will be an exciting year as we start the
process of resource delineation at Nimu and look to commence bulk sampling at
Dong Mao Huo gold mine with the aim of putting this back into production and
secure early cash flows. Going forward, we will leverage the developing value
of Nimu in recognition that this could be an important asset.
Central China Goldfields takes its corporate responsibilities, as an integral
part of the work, very seriously. We have continued to focus on health, safety,
environmental and community relations issues and boosted our training
accordingly. All of these initiatives are detailed in the Annual Report.
The company has a strong team on the ground with the relevant experience, right
contacts and ability to reinterpret data and introduce efficiencies in
production. Our progress could not have been achieved without the hard work of
all our employees, therefore in closing, on behalf of the Board of Directors, I
would like to thank all of them for their dedication over the past period and
all of our investors for their trust.
Latest developments:
The company has decided to refocus its financial resources towards Nimu and
Dong Mao Huo given the scale of Nimu and the earlier cashflow potential of the
Dong Mao Huo gold mine. In April we signed an agreement to sell our interests
in the
Snow Mountain project back to our Sichuan partners. The RMB 38 million proceeds
will be substantially focused on accelerating the Nimu copper project. The
company has now received an initial RMB 3 million with the balance payable when
the property interests are transferred back to the partners.
In the light of the progress being made at Dong Mao Huo to bring this into
early production, and the unexpected delays regarding granting of the Nileke
business license, the Board has decided that Central China would not be able to
advance the latter project as initially expected. We therefore amicably agreed
with our Nileke Chinese partner that Central China would return the project.
The initial RMB 3.5m committed to date have been returned to us.
Nigel Clark
Beijing
June 27th 2008
Technical information in the Company news releases has been reviewed and
approved by Ciceron "Jun" Angeles (MSc. FAusIMM, CPGeo) the Company's
Exploration Vice President. He is qualified as a Competent Person under the
Code for the Reporting Mineral Exploration Results, Mineral Resources and
Mineral Reserves, 2004 ("The Reporting Code") prepared by the Australasian
Institute of Mining and Metallurgy and the Australian Institute of
Geoscientists.
For Further Information:
Central China Goldfields plc Hanson Westhouse Limited
Dr. Jeffrey Malaihollo Anita Ghanekar / Martin Davison
Tel: 020 7621 0200 Tel: 020 7601 6100
Email: info@ccgoldfields.com
www.ccgoldfields.com
Neil Boom
Bishopgate Communications Ltd
Tel: 020 7562 3367
The financial information set out in this announcement does not constitute the
Company's statutory accounts for the years ended 31 December 2007 or 2006. The
statutory accounts for the year ended 31 December 2007 will be finalised on the
basis of the financial information presented by the directors in this
preliminary announcement.
CENTRAL CHINA GOLDFIELDS PLC
CONSOLIDATED INCOME STATEMENT
1 January 1 January
2007 to 31 2006 to 31
December December
2007
2006
�
As restated
�
Administrative expenses (2,114,637) (1,232,767)
OPERATING LOSS (2,114,637) (1,232,767)
Investment revenues - interest on bank deposits 128,052 66,571
LOSS BEFORE TAX (1,986,585) (1,166,196)
Tax - -
LOSS FOR THE FINANCIAL PERIOD (1,986,585) (1,166,196)
ATTRIBUTABLE TO THE EQUITY HOLDERS OF THE PARENT (1,986,585) (1,166,196)
BASIC LOSS PER SHARE (0.017) (0.016)
All of the activities of the Group are classed as continuing.
CENTRAL CHINA GOLDFIELDS PLC
CONSOLIDATED BALANCE SHEET
31 December 2007
2007 2006
� As restated
�
NON-CURRENT ASSETS
Goodwill 46,887 46,887
Other intangible assets 4,288,066 2,206,670
Tangible assets 62,420 1,961
Marketable Securities 428,266 -
4,825,639 2,255,518
CURRENT ASSETS
Other receivables 65,322 906,810
Cash and cash equivalents 1,620,463 4,013,417
1,685,785 4,920,227
TOTAL ASSETS 6,511,424 7,175,745
CURRENT LIABILITIES
Other payables (360,067) (137,385)
TOTAL LIABILITIES (360,067) (137,385)
NET ASSETS 6,151,357 7,038,360
EQUITY
Share capital 1,206,819 1,142,990
Share premium account 7,471,937 6,758,779
Warrant reserve 517,743 647,219
Share option reserve 494,079 254,079
Translation reserve 6,710 -
Retained losses (3,751,292) (1,764,707)
Minority Interest 205,361 -
TOTAL EQUITY 6,151,357 7,038,360
CENTRAL CHINA GOLDFIELDS PLC
COMPANY BALANCE SHEET
31 December 2007
2007 2006
� As restated
�
NON-CURRENT ASSETS
Investments in subsidiaries 150,850 127,053
Tangible assets - 1,961
Marketable Securities 428,266 -
579,116 129,014
CURRENT ASSETS
Other receivables 4,269,438 3,003,387
Cash and cash equivalents 1,310,102 4,013,417
5,579,540 7,016,804
TOTAL ASSETS 6,158,656 7,145,818
CURRENT LIABILITIES
Other payables (89,071) (134,799)
TOTAL LIABILITIES (89,071) (134,799)
NET ASSETS 6,069,585 7,011,019
EQUITY
Share capital 1,206,819 1,142,990
Share premium account 7,471,937 6,758,779
Warrant reserve 517,743 647,219
Share option reserve 494,079 254,079
Retained losses (3,620,993) (1,792,048)
TOTAL EQUITY 6,069,585 7,011,019
CENTRAL CHINA GOLDFIELDS PLC
STATEMENT OF CHANGES IN EQUITY
Year ended 31 December 2007
1 January 1 January
2007 to 31 2006 to 31
December December
2007
2006
�
As restated
�
GROUP
Opening balance 7,038,360 2,027,553
Loss for financial period (1,986,585) (1,166,196)
New equity share capital subscribed 63,829 620,540
Premium on new equity share capital subscribed 713,158 5,968,165
Value attributed to warrants granted (129,476) (537,781)
Value attributed to share options granted 240,000 126,079
Translation reserve 6,710 -
Minority Interest 205,361 -
Closing balance 6,151,357 7,038,360
COMPANY 1 January 1 January
2007 to 31 2006 to 31
December December
2007
2006
�
As restated
�
Opening balance 7,011,019 2,024,998
Loss for financial period (1,828,945) (1,190,982)
New equity share capital subscribed 63,829 620,540
Premium on new equity share capital subscribed 713,158 5,968,165
Value attributed to warrants granted (129,476) (537,781)
Value attributed to share options granted 240,000 126,079
Closing balance 6,069,585 7,011,019
CENTRAL CHINA GOLDFIELDS PLC
CONSOLIDATED CASH FLOW STATEMENT
Year ended 31 December 2007
1 January 1 January
2007 to 31 2006 to 31
December December
2007
2006
�
As restated
�
Operating loss (2,114,637) (1,232,767)
Depreciation 6,285 490
Amortisation - -
Non-cash IFRS adjustment - 135,000
Non-cash loss on impairment of marketable securities 258,722 -
Effect of foreign exchange translation 82,595 -
Loss on disposal of property, plant and equipment 1,962 -
Stock option expense 240,000 -
Non-cash cost of warrants exercised 129,476 -
Change in receivables and other current assets - 841,488 (892,565)
(Increase) / Decrease
Change in payables - Increase / (Decrease) 222,682 112,100
Non-cash adjustment to Share Premium - (14,287)
NET CASH USED IN OPERATING ACTIVITIES (331,427) (1,892,029)
INVESTING ACTIVITIES
Investment in marketable securities (686,988) -
Change in tangible fixed assets (68,705) (1,724)
Change in other intangible assets (2,081,396) (1,615,302)
Interest received 128,052 66,571
NET CASH USED IN INVESTING ACTIVITIES (2,709,037) (1,550,455)
FINANCING ACTIVITIES
Issue of equity share capital 63,828 620,540
Share premium on issue of equity share capital 564,456 5,682,469
Share issue costs 19,226 (246,719)
Proceeds on exercise of warrants - -
NET CASH FROM FINANCING ACTIVITIES 647,510 6,056,290
NET (DECREASE) / INCREASE IN CASH AND CASH EQUIVALENTS (2,392,954) 2,613,806
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 4,013,417 1,399,611
CASH AND CASH EQUIVALENTS AT END OF PERIOD 1,620,463 4,013,417
BASIS OF PREPARATION AND ACCOUNTING POLICIES
General information
Central China Goldfields is a Company incorporated in
England and Wales under the Companies Act 1985. These
financial statements are presented in pounds sterling
because that is the currency of the parent Company of
the Group. Foreign operations are included in accordance
with the policies set out in this note.
Adoption of new and revised International Financial
Reporting Standards
For the first time the Group is required to report its
consolidated financial statements under International
Financial Reporting Standards ("IFRS") as adopted by the
European Union. Comparative information for the year
ended 31 December 2006, previously reported under UK
GAAP, has been restated under IFRS.
The presentation of the Group's financial statements has
also changed. Presentation is now made in accordance
with IAS 1 "Presentation of Financial Statements" and
IAS 7 "Cash Flow Statements".
The Directors anticipate that the adoption of these
Standards and Interpretations in future periods will
have no material impact on the financial statements of
the Group.
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
