TIDMGGG
Central China Goldfields plc
("Central China" or the "Company")
29 September 2009
Chairman's Statement
Central China Goldfields plc (AIM: GGG) reports its unaudited results for the
six months ended 30 June 2009. This has been a challenging period in the
development of your Company.
Operational highlights:
* In January the Company received the balance of the sale proceeds in respect
to the Snow Mountain Project. The bulk of these proceeds were applied to
secure our initial 30% interest in Nimu Project.
* In January the Company received GBP207,500 from the December 2008 placing at
1.5 pence. Included in this was subscription for GBP20,000 from certain
Directors.
* In March the Company raised GBP300,000 at 1.25 pence, including GBP34,500 from
Directors and employees.
* In April we appointed Alexander David Securities as joint broker to the
Company.
* In May the Company signed a contract mining deal with a subsidiary of CITIC
Anhua to develop the Dong Mao Huo gold project.
* In June our partner the Sichuan Bureau of Metallurgy and Geological
Exploration approached the Company to acquire our interest in the Nimu
Project for a consideration of RMB 71 million.
* In light of the more subdued global environment for junior mining
exploration companies appropriate cost reduction measures were implemented.
These adjustments resulted in a significant reduction in ongoing
operational costs.
Post Balance Sheet Events:
* In July a Circular with details of the proposed sale of our interest in
Nimu Project was circulated to shareholders and the sale was subsequently
approved by the shareholders.
* The first instalment of payment from the sale of the Nimu Project was
received in August.
* In September we appointed Ciceron "Jun" Angeles as the Technical Director
of the Company.
Outlook
The Company was disappointed that it was unable to advance its potentially
world class copper discovery at Nimu. However, having considered the matter
thoroughly, the Directors believed it was in the best interests of the Company
to recommend the sale of the project. In light of the global financial crisis,
our ability to raise substantial funds from the market to advance this project
diminished substantially in the autumn of 2008. When matched with the desires
of our partner in China this meant that withdrawal from the project and taking
a modest profit on the asset became the most sensible way to proceed.
Today, Central China Goldfields plc is positioned as a well funded company with
a demonstrably successful exploration team. This, alongside a wealth of
contacts in China who are keen to seek opportunities farther afield, enables us
to go forward optimistically to seek undervalued and underdeveloped projects.
The management team have been working hard to identify projects that will
enhance shareholder value and, over the course of the next six months, we will
be assessing various new opportunities and look forward to updating
shareholders with further details.
Nigel Clark
Chairman
Central China Goldfields plc
Interim Results (unaudited) for the period ended 30 June 2009
CONSOLIDATED INCOME STATEMENT
Six months ended 30 June 2009
Six months Six months
ended 30 June ended 30 June
2009 2008
GBP GBP
Administrative expenses (228,493) (723,619)
OPERATING LOSS (228,493) (723,619)
Net gain on disposal of intangible assets - 999,408
Loss on impairment of marketable securities - (311,662)
Investment revenues - interest on bank deposits - 12,560
LOSS BEFORE TAX (228,493) (23,313)
Tax - -
LOSS FOR THE FINANCIAL PERIOD (228,493) (23,313)
ATTRIBUTABLE TO THE EQUITY HOLDERS OF THE PARENT (228,493) (23,313)
LOSS PER SHARE GBP0.0013 GBP0.0002
All of the activities of the Group are classed as continuing.
The Group has no recognised income or expense other than the loss for the
period shown 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 Income Statement.
STATEMENT OF CHANGES IN EQUITY
Six months Six months
ended 30 June ended 30 June
2009 2008
GBP GBP
Opening balance 7,578,603 6,151,357
Loss for the financial period (228,493) (23,313)
New equity share capital subscribed 378,333 31,360
Premium on new equity share capital subscribed 107,201 188,160
Translation reserve (855,790) 53,871
Foreign exchange movement on revaluation of (45,491) 13,424
minority interest
Closing balance 6,934,363 6,414,859
CONSOLIDATED BALANCE SHEET
30 June 2009 31 Dec 2008
GBP GBP
NON CURRENT ASSETS
Goodwill 126,148 126,148
Other intangible assets 6,941,458 7,726,808
Property, plant and equipment 46,860 83,525
7,114,466 7,936,481
CURRENT ASSETS
Other receivables 297,169 3,763,815
Cash and cash equivalents 184,916 63,598
482,085 3,827,413
TOTAL ASSETS 7,596,551 11,763,894
CURRENT LIABILITIES
Other payables (662,188) (4,185,291)
TOTAL LIABILITIES (662,188) (4,185,291)
NET ASSETS 6,934,363 7,578,603
EQUITY
Share capital 1,833,672 1,455,339
Share premium 8,213,121 8,105,920
Warrant reserve 492,329 492,329
Share option reserve 282,577 310,400
Translation reserve 793,386 1,649,176
Retained losses (4,907,910) (4,707,240)
EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT 6,707,175 7,305,924
Minority interest 227,188 272,679
TOTAL EQUITY 6,934,363 7,578,603
CONSOLIDATED CASH FLOW STATEMENT
Six months Six months
ended 30 June ended 30 June
2009 2008
GBP GBP
Operating loss (228,493) (35,873)
Depreciation 5,759 5,590
Non-cash loss on impairment of marketable - 331,662
securities
Gain on disposal of intangible assets - (999,408)
Proceeds on disposal of intangible assets - 218,206
Effect of foreign exchange translation 48,619 12,825
Decrease(Increase) in receivables and other 3,466,646 (205,371)
current assets
(Decrease)Increase in other payables (3,664,603) 1,096,876
NET CASH USED IN OPERATING ACTIVITIES (372,072) 404,507
INVESTING ACTIVITIES
Change in property, plant and equipment 28,619 (9,706)
Change in other intangible assets (18,476) (1,625,125)
Interest received - 12,560
NET CASH USED IN INVESTING ACTIVITIES 10,143 (1,622,271)
FINANCING ACTIVITIES
Issue of equity share capital 378,333 -
Share premium on issue of equity share capital 107,201 -
NET CASH FROM FINANCING ACTIVITIES 485,534 -
NET INCREASE(DECREASE) IN CASH AND CASH 123,605 (1,217,764)
EQUIVALENTS
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 63,598 1,620,463
Effect of foreign exchange rate changes (2,287) -
CASH AND CASH EQUIVALENTS AT END OF PERIOD 184,916 402,699
NOTES TO THE FINANCIAL STATEMENTS
Six months ended 30 June 2009
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 2008 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).
Results for the six-month period ended 30 June 2009 have not been audited.
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 basic 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 GBP228,493 for the six months ended 30 June 2009 (30 June 2008: GBP23,313)
and on 172,042,145 ordinary shares (30 June 2008: 123,817,873) being the
weighted-average number of ordinary shares in issue.
3. SHARE CAPITAL
30 June 2009 30 June 2008
GBP GBP
Authorised share capital 5,000,000 5,000,000
500,000,000 ordinary shares of 1 pence each
Called up, allotted and fully paid
No. GBP No. GBP
Ordinary shares of 183,367,191 1,833,672 123,817,873 1,238,179
1 pence each
During the six months ended 30 June 2009, 37,833,333 1p ordinary shares were
issued as follows:
(i) 13,833,333 shares at 1.5 pence
(ii) 24,000,000 shares at 1.25 pence
The Group has 15,067,250 (June 2008 - 15,067,250) share purchase warrants
outstanding at a weighted average exercise price of 10.06 pence (June 2008 -
10.06 pence).
At 30 June 2009, the total number of share options outstanding was 9,200,000
(June 2008 - 12,070,000). During the financial period, no share options were
issued (June 2008 - nil) and 800,000 lapsed (June 2008 - 450,000).
For further information, please contact:
Central China Goldfields plc Hanson Westhouse Limited
Dr. Jeffrey Malaihollo Tim Metcalfe / Martin Davison
Tel: 020 7621 0200 Tel: 020 7601 6100
Email: info@ccgoldfields.com Alexander David Securities
Limited
www.ccgoldfields.com
Nick Bealer / David Scott
Tel: 020 7448 9820
END
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