TIDMLRL
RNS Number : 0738Q
Leyshon Resources Limited
01 November 2012
LEYSHON RESOURCES LIMITED
1 November 2012
SEPTEMBER 2012 QUARTERLY REPORT
Leyshon Resources Limited (AIM/ASX:LRL) ("Leyshon" or the
"Company") previously announced that the recently appointed
management team at Pacific Asia Petroleum Limited (PAPL), which
Leyshon acquired in August for US$ 2.5 million in cash and the
issue of 10 million fully paid ordinary shares, has commenced
drilling at the 708 km(2) Zijinshan block located on the Eastern
flank of the prolific Ordos Basin, China's second largest and one
of the world's major gas producing basins.
The new management team, which successfully drilled and
appraised the recent multi-Tcf gas discoveries on the adjacent
Sanjiaobei and Linxing blocks, has designed an initial three well
programme to test for gas in similar formations over a 600 metre
interval to a depth of approximately 2.4 kilometres.
The first of two wells are expected to be completed by the end
of November with completion of the third expected in the new year.
The total cost for drilling, logging, casing, fracking and flow
testing the three wells is estimated at around US$ 5 million.
The wells are located within 10 kilometres of a tie in point on
the Lin-Lin pipeline which supplies the growing demand in Shanxi
Province where well head contracts have recently been struck in the
US$ 6 - 7.5 per mscf range.
PAPL has a 100% interest in the exploration phase of the
Production Sharing Contract (PSC) with PetroChina, which has the
right to buy back a 40% interest at the development stage.
Xinjiang Coal
As previously advised the recent 30% fall in domestic thermal
coal prices has materially impacted the near term economics and
potential financing arrangements of the thermal coal project
located in the Western Chinese province of Xinjiang that the
Company has been pursuing over the past twelve months.
The project remains an important part of the country's energy
plan and development is expected to commence shortly. Management
continues to monitor developments and to assess whether there is an
attractive entry point for the Company.
Mt Leyshon
As previously advised, the ball mill scats drilling and
preliminary testwork programme has indicated that the project is
viable but requires significant capital for a relatively modest
return, even at current gold prices. Management's view is that in
light of focus of the Company's strategy and given the scarcity of
risk capital of this nature, the returns do not warrant the
investment at this stage but will review the project's development
in the event that the price of gold should continue to rise. The
Company continues to review high quality gold investment
opportunities in China and elsewhere.
Cash Reserves
At quarter end the Company had A$47.8 million in cash, and is
due A$0.1 million in term deposit interest for a total of A$47.9
million (GPB 30.8 million). This is equivalent to A$ 19 cents per
share (12 pence per share).
Buy Back
The Company announced that the Buy Back will be increased from
5.5 to 24 million shares to be purchased on market no later than 12
September 2013. During the quarter 2,954,171 shares were purchased
under the on-market share buy-back with a further 1,900,000 shares
purchased during October 2012.
For further information contact:
Leyshon Resources Limited
PaulAtherley - Managing Director
Tel: +86 137 1800 1914 admin@leyshonresources.com
Seymour Pierce
Jonathan Wright (Nominated adviser)
Richard Redmayne (Corporate broking)
Tel: +44 (0)207 107 8000
Pelham Bell Pottinger
Charles Vivian - Director
Tel: +44 (0)20 7861 3126
James MacFarlane - Account Director
Tel: +65 9450 7574
Background
http://www.leyshonresources.com
Leyshon Resources Limited (AIM & ASX:LRL) was on the ground
in 2003 when China opened its mining sector to foreign investment.
It has been fully engaged in China since then with its main
operating office located in Beijing.
China's latest Five Year Plan emphasizes the planned
urbanisation of a large number of Central China's rural population
into second and third tier cities lifting the urbanisation rate to
51.5% of the overall population.
This will result in significant increases in infrastructure
spending and energy demands. The Company is planning to invest in
high quality energy assets in China to meet this growing
demand.
Appendix 5B
Mining exploration entity quarterly report
Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98,
30/9/2001, 01/06/10.
Name of entity
LEYSHON RESOURCES LIMITED
-------------------------
ABN Quarter ended ("current
quarter")
75 010 482 274 30 September 2012
--------------- -----------------------
Consolidated statement of cash flows
Cash flows related to Current quarter Year to date
operating activities
$A'000 (3 months)
$A'000
---------------- -------------
1.1 Receipts from product - -
sales and related debtors
Payments for (a) exploration
& evaluation
(b) development
(c) production (631) (631)
(d) administration - -
& Beijing - -
1.2 office (440) (440)
1.3 Dividends received - -
Interest and other
items of a similar
1.4 nature received 1,004 1,004
1.5 Interest and other - -
costs of finance paid
1.6 Income taxes paid (33) (33)
Other Mt Leyshon holding
1.7 costs (142) (142)
Net Operating Cash
Flows (242) (242)
----- ----------------------------- ---------------- -------------
Cash flows related
to investing activities
Payment for purchases
1.8 of:
(a) prospects - -
(b) equity investments (2,409) (2,409)
(c) other fixed assets (23) (23)
1.9 Proceeds from sale
of: - -
(a) prospects - -
(b) equity investments - -
(c) other fixed assets
1.10 Loans to other entities - -
1.11 Loans repaid by other - -
entities
1.12 Other - -
Net investing cash
flows (2,432) (2,432)
---------------- -------------
Total operating and
investing cash flows
1.13 (carried forward) (2,674) (2,674)
----- ----------------------------- ---------------- -------------
Total operating and
investing cash flows
1.13 (brought forward) (2,674) (2,674)
----- -------------------------- ----------
Cash flows related
to financing activities
----------
1.14 Proceeds from issues - -
of shares, options,
etc.
1.15 Proceeds from sale - -
of forfeited shares
1.16 Proceeds from borrowings - -
1.17 Repayment of borrowings - -
1.18 Dividends paid - -
Other - Share buy-back
1.19 costs (548) (548)
---------- ----------
Net financing cash
flows (548) (548)
----- -------------------------- ----------
Net increase (decrease)
in cash held (3,222) (3,222)
----------
Cash at beginning of
1.20 quarter/year to date 51,015 51,015
1.21 Exchange rate adjustments - -
to item 1.20
---------- ----------
1.22 Cash at end of quarter 47,793 47,793
----- -------------------------- ---------- ----------
Payments to directors of the entity and associates of the
directors
Payments to related entities of the entity and associates of the
related entities
Current quarter
$A'000
----------------
Aggregate amount of payments
to the parties included in item
1.23 1.2 137
----------------
1.24 Aggregate amount of loans to -
the parties included in item
1.10
------- ------------------------------------ ----------------
1.25 Explanation necessary for an understanding
of the transactions
Payments include managing director's remuneration
and non-executive directors' fees.
------------------------------------------------------
Leyshon Resources (LSE:LRL)
Historical Stock Chart
From May 2024 to Jun 2024
Leyshon Resources (LSE:LRL)
Historical Stock Chart
From Jun 2023 to Jun 2024
