GVM Gvm Metals

RNS Number:0316H
GVM Metals Ltd
01 August 2006

                               GVM METALS LIMITED



                                QUARTERLY REPORT



GVM Metals Limited ("GVM" or "the Company") is pleased to announce its
operational report for the 4th quarter ended 30 June 2006.  A full copy of this
report, as released today on the ASX, is available at the Company's website,
www.gvm.com.au.  The final results for the year ended 30 June 2006 are
anticipated to be released prior to the middle of October 2006.

                                   Highlights

  * Record NiMag quarterly profit before interest and tax of A$1.52 million
    and net operating cash flows of A$1.027 million.
  * Annual unaudited Group profit before interest and tax of A$1.6 million.
  * Annual unaudited Nimag Group profit before interest and tax of A$2.653
    million.
  * Approximately $1.488 million of debt was repaid during the year.



                             Discussion of Results

Nimag Group of Companies (GVM-74% with option to acquire balance by share issue)



In line with expectations, the fourth quarter was the Nimag Group's best quarter
for the year and it reported profit before interest and tax of A$1.5 million.
The quarter's profit was strongly supported by the depreciation of the Rand and
the increase in the nickel price.



The Trading and Fibres businesses also returned to profitability during the
quarter.  Though the FesiMag business still performs behind budget, the outlook
remains positive.



With the continued weakening performance of the Rand and the high nickel price
the outlook for the Group is very positive.



SA Mineral Resources Corporation ("Samroc")  - GVM-26.26%



Though the Company recovered well since the beginning of 2006, trading
conditions remain difficult.  GVM announced its intention to exit the Samroc
investment and is pursuing various opportunities in this regard.  GVM disposed
of 13% of its equity investment in Samroc during the quarter.



Coal

On the 28 June 2006, shareholders approved the acquisition of a 74% interest in
the 352 million tonne Limpopo Coal Project.  Negotiations with other parties to
expand the Company's interests in both our Limpopo and Witbank coal projects
made good progress during the quarter and finalisation of these negotiations is
expected before the end of the September quarter.

Holfontein Coal Project - GVM 49%

During the quarter, collection and capturing of all the old Holfontein data was
completed as well as completion of cross sections of the ore body.  This data
will be used to accurately position the drill holes as part of the bankable
feasibility study for Holfontein.

Subsequent to the end of the quarter, air geophysics was completed over
Holfontein and agreement with the drilling contractor signed.

Limpopo Coal Project - GVM 74%

During the quarter GVM submitted the application for the conversion of the
Limpopo prospecting rights to the Department of Minerals and Energy for the
transfer to GVM.  The Company has been advised to expect this process to take
8-12 weeks.

Historical data on the project area, including much of the feasibility work
conducted by Southern Sphere Mining 20 years ago, is being collected and
collated in preparation for a major drilling program to commence in the December
quarter.




For more information contact:

Simon Farrell, Managing Director - GVM - +61 417 985 383 or +61 8 9322 6776

Leesa Peters / Abi Singleton - Conduit PR - +44(0) 20 7429 6606

Olly Cairns - Corporate Synergy Plc - +44(0) 20 7448 4400



                                 www.gvm.com.au










                      This information is provided by RNS
            The company news service from the London Stock Exchange
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