TIDMGGG
GGG Resources plc
(the "Company" or "GGG")
Interim Results to 30 June 2010
29 September 2010
Chairman's Statement
GGG Resources plc (AIM: GGG), previously Central China Goldfields plc, reports
its unaudited results for the six months ended 30 June 2010.
The Company has made strong progress in 2010. The Company has identified,
acquired an interest in, and released a resource update for its Bullabulling
project. Under a new brand and a strengthened board of directors, the Company
aims to bring the Bullabulling gold project into production by early 2013.
Operational highlights:
* In February, we signed an option to purchase 50% of the Bullabulling
Project in Western Australia from Auzex Resources Ltd ("Auzex"). As part of
this deal, the Company took an A$ 1.5 million private placement in Auzex at
A$ 25 cents per share.
* In April, we exercised the option and purchased 50% of Bullabulling for a
consideration of A$ 1.9 million cash and A$ 600,000 in environmental bond
replacement. The resource of this former mine at that time was
approximately 430,000 ounces of gold - on this basis the Company paid
approximately US$10/oz for its 50% share of the project.
* An independent structural geology review was completed in early June to
better understand the geological controls on the gold mineralisation, as a
preliminary step towards JORC compliance.
* A modest programme of 7 holes of confirmation drilling at Bullabulling
started at the end of June, largely to test the new geological model and to
begin validation of the historical drill database of Resolute/Samantha.
* In June, we ceded our option over the Cikoleang Project in Indonesia in
order to concentrate on Bullabulling.
* Also in June, the Company welcomed Michael Short as a Non-executive
Director. Michael is an experienced engineer who has guided companies
through feasibility studies and has built mines throughout the world,
including two gold mines in the Bullabulling region.
* At the end of this period approximately US$ 3.7 million of the Company's
funds from China had been repatriated back to our UK bank account.
Post Balance Sheet Events:
* In July, we raised GBP 1.125 million at 3.8 pence per share which was taken
primarily by funds managed by Baker Steel Capital Managers and CQS Asset
Management Ltd. This funding will be used to advance the Bullabulling
Project towards feasibility and development. Currently, the Group has a
positive cash balance of GBP2.6 million.
* Following the full re-constitution of the historical Bullabulling drill
database, in August we announced that independent consultant CSA Global had
signed off an increase in the resources at Bullabulling to 2 million
ounces, 450% uplift.
* At the AGM in August, the shareholders approved the change of the Company's
name from Central China Goldfields plc to GGG Resources plc. This reflects
the transformation and redirection of the Company.
* In September, we announced an A$ 2,000,000 drilling programme at
Bullabulling, marking the beginning of the feasibility study for the
project.
Outlook
The first half of 2010 was an active, exciting and fruitful period. After
careful assessment, the Directors concluded that Bullabulling is a quality
asset which has the potential to generate substantial returns for shareholders.
We therefore committed with confidence the proceeds from the sale of Nimu to
purchase half of Bullabulling, and a 10% stake in our partner's company Auzex
Resources Ltd.
Since acquiring our 50% interest in Bullabulling I am pleased to report that
its resources have dramatically increased to 2 million ounces of gold. We have
now embarked on the start of the feasibility study at Bullabulling, and hope to
start converting the resources into reserves.
The Directors are confident that we can expand further still the resource at
Bullabulling, and also increase the degree of confidence in the quality of the
resources.
I look forward to updating Shareholders on further progress in the coming
months.
Dr. Peter Ruxton
Chairman
For further information, please contact:
Dr. Jeffrey Malaihollo Westhouse Securities Limited
Tel: 01992 531820 Tim Metcalfe / Martin Davison
Email: info@gggresources.com Tel: 020 7601 6100
www.gggresources.com
Gresham PR Alexander David Securities Limited
Neil Boom Nick Bealer / David Scott
Tel: 07866 805 108 Tel: 020 7448 9820
GGG Resources plc
Interim Results (unaudited) for the period ended 30 June 2010
CONSOLIDATED INCOME STATEMENT
Six months ended 30 June 2010
Six months ended Six months ended
30 June 2010 30 June 2009
GBP GBP
Administrative expenses (522,253) (228,493)
OPERATING LOSS (522,253) (228,493)
Investment revenues - interest on bank 17,790 -
deposits
LOSS BEFORE TAX (504,463) (228,493)
Tax - -
LOSS FOR THE FINANCIAL PERIOD (504,463) (228,493)
ATTRIBUTABLE TO THE EQUITY HOLDERS OF THE (504,463) (228,493)
PARENT
LOSS PER SHARE GBP0.0026 GBP0.0013
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 the provisions of the Companies Act 2006 not
to publish its own Income Statement.
STATEMENT OF CHANGES IN EQUITY
Six months ended Six months ended
30 June 2010 30 June 2009
GBP GBP
Opening balance 5,334,039 7,578,603
Loss for the financial period (504,463) (228,493)
New equity share capital subscribed 140,449 378,333
Premium on new equity share capital 421,349 107,201
subscribed
Valued attributed to share options 107,815 -
granted
Translation reserve (76,399) (855,790)
Foreign exchange movement on revaluation - (45,491)
of minority interest
Closing balance 5,422,790 6,934,363
CONSOLIDATED BALANCE SHEET
30 June 2010 31 December 2009
GBP GBP
NON CURRENT ASSETS
Investment 842,697 -
Other intangible assets 1,212,573 -
Total 2,055,270 -
CURRENT ASSETS
Other receivables 351,417 2,296,578
Cash and cash equivalents 3,060,364 3,762,442
Total 3,411,781 6,059,020
TOTAL ASSETS 5,467,051 6,059,020
CURRENT LIABILITIES
Other payables (44,261) (724,981)
TOTAL LIABILITIES (44,261) (724,981)
NET ASSETS 5,422,790 5,334,039
EQUITY
Share Capital 1,974,121 1,833,672
Share premium 8,634,469 8,213,120
Warrant reserve - 492,329
Share option reserve 288,172 267,418
Translation reserve 646,935 723,334
Retained losses (6,120,907) (6,195,834)
EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF 5,422,790 5,334,039
THE PARENT
CONSOLIDATED CASH FLOW STATEMENT
Six months ended Six months ended
30 June 2010 30 June 2009
GBP GBP
Operating loss (522,253) (228,493)
Depreciation - 5,759
Stock option expense 107,815 -
Effect on foreign exchange translation (75,076) 46,332
Decrease(Increase) in receivables and 1,943,839 3,466,646
other current assets
(Decrease) Increase in other payables (680,720) (3,664,603)
NET CASH USED IN OPERATING ACTIVITIES 773,605 (374,359)
INVESTING ACTIVITIES
Change in property, plant and equipment - 28,619
Acquisition of investment (842,697) -
Change in other intangible assets (1,212,573) (18,476)
Interest received 17,790 -
NET CASH USED IN INVESTING ACTIVITIES (2,037,480) 10,143
FINANCING ACTIVITIES
Issue of equity share capital 140,449 378,333
Share premium on issue of equity share 421,348 107,201
capital
NET CASH FROM FINANCING ACTIVITIES 561,797 485,534
NET INCREASE (DECREASE) IN CASH AND CASH (702,078) 121,318
EQUIVALENTS
CASH AND CASH EQUIVALENTS AT BEGINNING OF 3,762,442 63,598
PERIOD
CASH AND CASH EQUIVALENTS AT END OF 3,060,364 184,916
PERIOD
NOTES TO THE FINANCIAL STATEMENTS
Six months ended 30 June 2010
1. ACCOUNTING POLICIES
These interim financial statements do not constitute statutory financial
statements within the meaning of the Companies Act 2006. A copy of the
statutory accounts for the year ended 31 December 2009 has been delivered to
the Registrar of Companies. The auditors' report on those accounts was not
qualified and did not contain statements under the Companies Act 2006.
These interim financial statements have been prepared in accordance with
International Financial Reporting Standards (IFRS).
Whilst the results for the six-month period ended 30 June 2010 are unaudited,
they have been reviewed by the Company's Auditors.
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 GBP504,463 for the six months ended 30 June 2010 (30 June 2009: GBP228,493)
and on 194,153,087 ordinary shares (30 June 2009: 172,042,145) being the
weighted-average number of ordinary shares in issue.
3. SHARE CAPITAL
30 June 2010 30 June 2009
GBP GBP
Authorised share capital 5,000,000 5,000,000
500,000,000 ordinary shares
of 1 pence each
Called up, allotted and No GBP No GBP
fully paid Ordinary shares
of 1 pence each
197,412,135 1,974,121 183,367,191 1,833,672
During the six months ended 30 June 2010, 14,044,944 1p ordinary shares were
issued at 4 pence per share
The Group has no share purchase warrants outstanding (June 2009 - 15,067,250 at
a weighted average exercise price of 10.06 pence).
At 30 June 2010, the total number of share options outstanding was 16,700,000
(June 2009 - 9,200,000). During the financial period, 9,150,000 share options
were issued (June 2009 - nil) and 1,850,000 lapsed (June 2009 - 800,000).
4. INVESTMENT
The investment of GBP842,697 comprises the Company's interest of 6,000,000 shares
in Auzex Resources Limited. At the last practical date before announcement of
the interim results, these shares traded at AUD 0.41.
5. OTHER RECEIVABLES
Included in other receivables, is an environmental bond of AUD 600,000.
6. POST BALANCE SHEET EVENTS
In July 2010, the Company placed 29,605,263 new 1p ordinary shares at 3.8p per
share, raising GBP1,125,000. For every three shares placed, one warrant was
issued and these warrants are exercisable at 6.3p until 19 January 2012. In
total, 9,868,421 warrants were issued.
END
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