RNS Number:1784U
Moydow Mines International Inc
15 November 2005
Third Quarter
Interim Report
Three Months Ended September 30, 2005
Toronto Office
Suite 1220, 20 Toronto Street
Toronto, Ontario M5C 2B8
Tel : (416) 703-3751
Fax : (416) 367-3638
E-mail : info@moydow.com
Dublin Office
74 Haddington Road
Dublin 4, Ireland
Tel : (353) 1-667-7611
Fax : (353) 1-667-7622
E-mail : info@moydow.com
Message to Shareholders
Dear Shareholder,
We are pleased to report on our current activities.
The Dala diamond project in Angola continues to live up to our expectations that
this is a very prospective area. Our recent exploration campaign at Dala has
centred on detailed geological mapping and geophysics, aimed primarily at
identifying those areas in this large tract of land which are worthy of
follow-up. We have recently completed an airborne geophysical survey of the
area and the results, which are currently being interpreted, indicate several
regions on the property which will require significant exploration efforts in
the coming months.
The Port Loko bauxite project in Sierra Leone is now entering a new phase as the
project moves towards feasibility. CAM LLC of Denver, Colorado has been
appointed to produce a feasibility study on the project and it is expected that
this report will be completed in early 2006. Following completion of the study,
Moydow will have a 60% interest in the project.
In Ghana, attention has been focussed on our two prospective tenements at
Okumpreko and Hwidem. We have now identified several targets on both projects
which warrant drilling. In early 2006, eight anomalous targets will be drilled
at Okumpreko and six targets at will be drilled at Hwidem.
On the Ahafo gold belt in Ghana, Moydow is entitled to a 2% royalty on
production in excess of 1.2 million ounces from the Ntotoroso property which was
sold to Newmont last year. Newmont has recently announced that the Zone E
deposit (now called the Subika deposit), which is located on the Ntotoroso
property currently has a reserve of over 2.4 million ounces. Another of the
Ahafo deposits, the Awonsu pit, also extends almost 500 meters into the
Ntotoroso property and it is therefore expected that the Moydow royalty from
this project to date will be based on at least 1.5 million ounces.
Your Company will continue in the short term to focus its efforts on those areas
which display the greatest potential for future profitability and shareholder
return and I am confident that the next several months will be an exciting and
rewarding time for all our stakeholders.
Signed on behalf of the board
"Signed"
Brian Kiernan
President and Chief Executive Officer November 11, 2005
Management's Discussion and Analysis of Financial Condition
and Results of Operations
(All results are expressed in United States dollars unless otherwise stated)
General
This interim management discussion and analysis ("MD&A") is a review of Moydow's
financial and operating results for the third quarter and nine months ended
September 30, 2005 and are compared with those for the corresponding periods of
2004. In order to better understand the MD&A, it should be read in conjunction
with the audited consolidated financial statements of the Company and notes
thereto for the year ended December 31, 2004. The consolidated financial
statements have been prepared in accordance with Canadian generally accepted
accounting principles. The reporting currency for the Company is the United
States dollar, and all amounts in the following discussion are in United States
dollars unless otherwise noted. The attached financial statements have not been
reviewed by the Company's auditors. This discussion is based on information
available to November 9, 2005.
Company Overview
Moydow Mines International Inc. ("Moydow" or the "Company") is an international
exploration company with primary interests in precious and industrial minerals
and diamonds. Moydow's common shares are listed on both the Toronto Stock
Exchange and the Alternative Investment Market ("AIM") of the London Stock
Exchange (symbol "MOY"). For further information on the Company please visit
our website at www.moydow.com or view our public filings on the SEDAR website at
www.sedar.com.
On September 30, 2005 Moydow's common shares were admitted to trading on "AIM".
The London listing is an integral part of Moydow's strategy to increase its
shareholders profile in the United Kingdom and Europe.
Subsidiaries and affiliated companies of Moydow are organized internationally so
that each has a specific geographic area or mineral project interest. Moydow
provides administrative, technical and financial assistance to these companies.
Forward-Looking Statements
This MD&A may contain forward-looking statements. Such statements are subject
to a number of known and unknown risks and uncertainties and other factors that
may cause actual results to differ materially from those anticipated in such
forward-looking statements.
Application of Critical Accounting Estimates
Moydow's accounting policies are described in note 2 to the Consolidated
Financial Statements for the year ended December 31, 2004. Set out below is a
discussion of the application of Moydow's critical accounting policies that
require the Company to make assumptions about matters that are uncertain at the
time the accounting estimate is made, and where different estimates that could
reasonably have been used in the current period, or changes in the accounting
estimate that are reasonably likely to occur from period to period, could have a
material impact on Moydow's financial statements.
Carrying value of mineral properties
Acquisition costs of mineral properties, together with direct exploration and
development expenses incurred thereon, are deferred and capitalized on a
property by property basis. Upon reaching commercial production, these
capitalized costs are transferred from exploration properties to producing
properties on the consolidated balance sheets and are amortized into operations
using the unit-of-production method over the estimated useful life of the
estimated related ore reserves.
In the event that the long-term expectation is that the net carrying amount of
these capitalized exploration costs will not be recovered, the carrying amount
is written down accordingly and the write-down amount charged to operations.
Such would be indicated where:
* Exploration activities have ceased;
* Exploration results are not promising such that exploration will not be
planned for the foreseeable future;
* Lease ownership rights expire; or
* Insufficient funding is available to complete the exploration program.
The amount shown for mineral properties represents costs incurred to date net of
recoveries from option or joint venture participants and write-downs, and does
not necessarily reflect present or future values.
Segmented Information
The Company has one reportable operating segment, being exploration of mineral
properties in geographic areas as reported in Note 3.
Overview of Exploration Activities and Commitments
Port Loko property, Sierra Leone
In September 2004, the Company entered into an option agreement, with respect to
this property with Gondwana (Investments) S.A. ("Gondwana"), a company
incorporated in Luxembourg. The original agreement allowed Moydow to acquire up
to a 60% interest in the property by incurring exploration expenditure of $1
million and delivering a feasibility study on or before August 1, 2005. The
deadline for delivering the study is being extended by mutual agreement. The
agreement only covers bauxite and no other minerals on the property. Cumulative
expenditures to September 30, 2005 amounted to $1.3 million of which $0.30
million was spent in the third quarter of 2005.
Okumpreko property, Ghana
Exploration work continued on the Okumpreko gold property in Ghana where the
Company carried out mapping, geochemical and geophysical studies with a view to
lining up drill targets. Drilling will commence when the rainy season has
finished. The Company can earn a 40% interest in this gold project in return
for direct expenditures of $250,000 incurred within one year of entering into
the agreement which was signed in September 2004. The Company can increase its
interest to 51% by incurring additional exploration expenditure of $250,000
within two years of signing the agreement. The deadline for completing the
expenditures is being extended by mutual agreement. Cumulative expenditures to
September 30, 2005 amounted to $0.19 million of which $0.05 million was spent in
the third quarter of 2005.
Dala project, Angola
In October 2004, Moydow and its partner, Concord Minerals LLC (Concord"), a
private Nevada company, signed an agreement with Empresa Nacional De Diamantes
De Angola ("Endiama"), the Angolan state diamond mining company and
Cimader-Comercio Geral Limitada, ("Cimader") a private Angolan company, to
explore for alluvial diamonds on the Dala concession. Under the terms of the
agreement, Moydow and Concord each have a 16.5% interest in the concession with
the remaining percentages held by Endiama and Cimader. To maintain their
interest, Moydow and Concord will have to incur aggregate expenditures of not
less than $5 million on or before October 1, 2007. Cimader and Endiama have a
free carried interest in the project.
During the third quarter of 2005, the Company completed an aeromagnetic and
topographic survey on the Dala concession which is located near the town of
Saurimo in north eastern Angola. The results are currently being interpreted.
The concession covers 3,000 square kilometres. The Company's cumulative
expenditures to September 30, 2005 amounted to $0.92 million of which $0.33
million was spent in the third quarter of 2005.
Newfoundland and Labrador
Moydow has earned a 51% interest in the True Grit claims. Moydow is the
operator of the joint venture. Cumulative expenditures to September 30, 2005
amounted to $0.87 million of which $0.01 million was spent in the third quarter
of 2005. As exploration results to date are not promising and exploration is
not planned for the foreseeable future, the Company decided to write-off its
investment in the amount of $0.87 million. The Company plans to continue to
keep the licence in good standing.
Results of Operations
Net loss for the third quarter of 2005 was $0.74 million or $0.025 per share
compared to a profit $0.56 million in the same period in 2004 or $0.020 per
share.
During the third quarter of 2005, the Company sold 10,000 Newmont Mining
Corporation ("Newmont") common shares for proceeds of $0.41 million. The
Company recognized a gain of $0.02 million on the sale of these shares. The
Company also recorded a gain of $0.49 million on the write-up of its then
remaining 60,000 Newmont common shares to their market value on September 30,
2005. In the same period of 2004, the Company sold 20,000 Newmont common shares
for proceeds of $0.83 million and recognized a gain of $0.05 million on the sale
of these shares and the Company also recorded a gain of $1.08 million on the
write-up of its then remaining 160,000 Newmont common shares to their market
value on September 30, 2004.
General and administrative expenses were $0.29 million in the third quarter of
2005 compared to $0.32 million in the same period in 2004. During the third
quarter of 2004 executive salaries were increased effective to the beginning of
the year. During the third quarter of 2005 the Company incurred a cost of $0.10
million in respect to the Company's listing on the AIM.
During the third quarter of 2005 and 2004, the Company wrote off mineral
property expenditures in the amount of $1.24 million and $0.03 million,
respectively. As exploration results to date on both the True Grit property,
located in south-central Newfoundland and on the Kanyankaw property in Ghana are
not promising and exploration is not planned for the foreseeable future, the
Company decided to write-off its investments in the amounts of $0.87 million and
$0.33 million, respectively. The Company plans to continue to keep the licences
in good standing. In addition, the Company wrote off mineral property
expenditures incurred on a number of minor projects in the sum of $0.04 million
and $0.03 million, respectively.
On August 13, 2004 the Company granted 2 million stock options to officers,
directors, employees and consultants. The estimated fair value at the issue
date was $0.35 million (Can$0.22 per option). The fair value of each option was
estimated on the date of grant using the Black-Scholes option pricing model.
The $0.35 million was recorded as stock-based compensation expense.
The foreign exchange gain for both the three months ended September 30, 2005 and
the three months ended September 30, 2004 was $0.11 million. The foreign
exchange gain resulted from the movements in exchange rates between operating
currencies and the United States dollar.
The Company earned dividend income of $0.005 million and $0.01 million during
the third quarter of 2005 and 2004, respectively. The dividend income relates
to the Company's shareholding in Newmont.
The Company earned deposit interest income of $0.002 million in both the third
quarter of 2005 and 2004, respectively.
Net loss for the nine months to September 30, 2005 was $1.94 million or $0.067
per share compared to a loss of $2.06 million in the same period in 2004 or
$0.072 per share.
During the nine month period ended September 30, 2005, the Company sold 80,000
Newmont common shares for proceeds of $3.28 million and recognized a loss of
$0.18 million on the sale of these shares. The Company also recorded a net gain
of $0.07 million on the write-up of its then remaining Newmont common shares to
their respective market values at March 31, June 30, and September 30,2005. In
the same period of 2004, the Company sold 640,000 Newmont common shares for
proceeds of $29.20 million and recognized a loss of $0.13 million on the sale of
these shares. During the nine month period ending September 30, 2004 the
Company also recorded a net loss of $1.81 million on the write-down of its then
remaining Newmont common shares to their respective market values at March 31,
June 30 and September 30, 2004.
General and administrative expenses were $0.90 million during the first nine
months of 2005 compared to $0.96 million in the same period in 2004. During the
first nine months of 2004 there was increased travel costs associated with
property appraisals, investor relations costs and professional fees associated
with the conclusion of the sale of Moydow Limited (Isle of Man) to Newmont.
During the nine months ended September 30, 2005 and 2004, the Company wrote off
mineral property expenditures in the sum of $1.24 million and $0.05 million,
respectively. .As exploration results to date on both the True Grit property,
located in south-central Newfoundland and on the Kanyankaw property in Ghana are
not promising and exploration is not planned for the foreseeable future, the
Company decided to write-off its investments in the amounts of $0.87 million and
$0.33 million, respectively. The Company plans to continue to keep the
licences in good standing. In addition, the Company wrote off mineral property
expenditures incurred on a number of minor projects in the sum of $0.04 million
and $0.05 million, respectively.
The Company earned dividend income of $0.02 million and $0.03 million during the
nine months ended September 30, 2005 and 2004, respectively. The dividend
income relates to the Company's shareholding in Newmont.
The Company earned deposit interest income of $0.007 million and $0.008 million
during the first nine months of 2005 and 2004, respectively.
Liquidity and Capital Resources
At September 30, 2005, the Company had working capital of $3.20 million
(December 31, 2004 - $5.55 million). Cash and cash equivalents at September 30,
2005 amounted to $0.70 million compared to $0.81 million at December 31, 2004.
At September 30, 2005, the Company held 60,000 Newmont common shares with a
market value of $2.83 million. The primary factor that could potentially
adversely affect the Company's liquidity is the realisable value of these
Newmont common shares.
Cash Flow Statements
Cash flow from operating activities for the third quarter of 2005, including
changes in non-cash working capital of $0.51 million, totalled $0.50 million
compared to $0.03 million in the same period of 2004. In the three months ended
September 30, 2005 cash used for investing activities was $0.35 million
representing $0.77 million (2004 - $0.50 million) expended on exploration of
mineral properties, principally on the Port Loko bauxite property in Sierra
Leone and the Dala diamond project in Angola less the proceeds from the sale of
10,000 ($0.41 million) Newmont common shares .
Cash flow used in operating activities for the nine months of 2005, including
changes in non-cash working capital of $1.14 million, totalled $1.74 million as
compared to $1.08 million in the same period of 2004. During the nine months
ended September 30, 2005 cash provided by investing activities was $1.37 million
representing the proceeds from the sale of 80,000 ($3.28 million) Newmont common
shares less $1.91 million (2004 - $1.01 million) expended on exploration of
mineral properties, principally on the Port Loko bauxite property in Sierra
Leone and the Dala diamond project in Angola.
Cash flow used in financing activities for the nine month period ended September
30, 2005 was $0.27 million. The Company closed a private placement on August
30, 2005 at price of CAN$0.197 per common share. The Company capitalized an
additional $0.01 million pursuant to a joint venture agreement with Altius
Resources Inc. Cash flow used in financing activities for the same period in
2004 was $27.57 million, being a distribution to the shareholders resulting from
the sale of the Company's 50% interest in the Ntotoroso property in December
2003.
Use of Financial Instruments
The Company has not entered into any specialized financial agreements to
minimize its investment risk, currency risk or commodity risk. There are no
off-balance sheet arrangements.
Changes in Accounting Policies
There was no change in accounting policies during the first nine months of 2005.
Outstanding Share Data
As at November 9, 2005, the Company has 30,620,574 common shares issued.
Holders of common shares are entitled to one vote on any ballot at meetings in
respect of each common share held. The Company has 2,000,000 stock options
outstanding at a weighted average price of CAN$0.33 per option and 200,000
warrants outstanding at a price of CAN$0.38 per warrant. On January 14, 2005,
1,235,000 stock options expired at a weighted average price of CAN$1.80 per
option.
Transactions with Related Parties
Related party transactions relate primarily to the payment of fees under
contracts for drilling and administration services with companies in which two
Company directors are shareholders and/or directors. The Company was charged a
total of $0.09 million during the third quarter of 2005 with respect to these
services (2004 - $0.07 million). Included in accounts payable and accrued
liabilities at September 30, 2005 is $nil (2004 - $0.10 million) payable to
these related parties for such services.
The Company's primary legal counsel is with a firm in which a director of the
Company is a partner. The Company was charged $0.13 million during the nine
months ended September 30, 2005 (2004 - $nil) for legal services provided by
this firm. There was no accounts payable or accrued liabilities for legal
services at September 30, 2005 and 2004, respectively.
The remuneration of executive directors comprises all of the fees, salaries,
other benefits and emoluments paid to executive directors under employment
contracts and consulting agreements. The remuneration of the executive
directors is fixed by the Compensation Committee, which is comprised solely of
non-executive directors of the Company. The Company was charged $0.06 million
during the third quarter of 2005 (2004 - $0.15 million) pursuant to such
agreements with three executive directors. Included in accounts payable and
accrued liabilities as at September 30, 2005 is $0.10 million (2004 - $nil) with
respect to such remuneration. During the nine months to September 30, 2005 the
Company was charged $0.18 million (2004 - $0.26 million).
Quarterly Information
The following table summaries the results of the Company for each of the most
recent eight quarters:
Sept June March Dec
2005 2005 2005 2004
$ $ $ $
Revenues - - - -
Net profit/(loss) (735,771) (678,423) (529,462) 126,053
Basic and diluted (loss)/
earnings per common share (0.025) (0.023) (0.018) 0.004
Total assets 6,662,268 6,821,886 7,225,175 9,296,704
Number of common shares
outstanding 30,620,574 28,964,382 28,964,382 28,814,382
Sept June March Dec
2004 2004 2004 2003
$ $ $ $
Revenues - - - 9,624
Net profit/(loss) 562,407 (1,868,233) (758,992) 32,748,121
Basic and diluted (loss)/
earnings per common share 0.020 (0.065) (0.026) 1.14
Total assets 9,714,493 8,869,545 11,247,041 39,712,942
Number of common shares
outstanding 28,814,382 28,784,382 28,784,382 28,784,382
Regulatory, Environmental and Other Risk Factors
The Company intends to fulfil all statutory commitments on its current licences
over the next year and will apply for licence renewals in the normal course of
business.
The Company's operating income and cash flow are affected by changes in the U.S.
/Canadian dollar exchange rate together with movement in the local currencies in
Africa and Ireland, as a portion of the Company's costs are incurred in these
currencies.
The profitability of any mining operation will be significantly affected by
changes in the market price of commodities. Commodity prices fluctuate on a
daily basis and are affected by numerous factors such as world supply, Central
Bank selling, stability of exchange rates, forward sales and inflationary
forces, among other factors beyond Moydow's control.
Moydow has sufficient cash and marketable securities to meet its contractual
obligations for the foreseeable future. No exploration company can guarantee
that the current or proposed exploration or development programs on properties
will result in the discovery of gold or other mineralization or will result in a
profitable commercial mining operation.
In addition, exploration companies are subject to various laws and regulations
including but not limited to environmental and, health and safety matters
together with political risks, which are outside the Company's control. Moydow
is committed to a program of environmental protection at all of its projects and
exploration sites.
Outlook
The Company will in the short term focus its efforts on adding value to our
diamond property in Angola and our bauxite property in Sierra Leone.
MOYDOW MINES INTERNATIONAL INC.
CONSOLIDATED BALANCE SHEETS
(expressed in United States dollars, unless otherwise stated)
Sep-30 Dec-31
2005 2004
(unaudited) (audited)
Assets $ $
Current assets
Cash and cash equivalents 704,991 808,321
Newmont common shares (note 2) 2,830,200 6,217,400
Accounts receivable and prepaid expenses 364,608 177,786
3,899,799 7,203,507
Mineral properties (note 3) 2,739,511 2,064,293
Other assets 22,958 28,904
6,662,268 9,296,704
Liabilities
Current liabilities
Current income taxes - 1,274,481
Accounts payable and accrued liabilities 697,769 379,158
697,769 1,653,639
Future income taxes 740,546 740,546
1,438,315 2,394,185
Shareholders' Equity
Capital stock 16,745,335 16,480,245
Contributed surplus 402,406 402,406
Deficit (11,923,788) (9,980,132)
5,223,953 6,902,519
6,662,268 9,296,704
MOYDOW MINES INTERNATIONAL INC.
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(expressed in United States dollars, unless
otherwise stated)
Three months ended Nine months ended
Sep-30 Sep-30 Sep-30 Sep-30
2005 2004 2005 2004
$ $ $ $
Expenses
Stock-based compensation - 346,484 - 346,484
Write-down of mineral properties 1,235,088 27,475 1,235,088 48,748
General and administrative expenses 287,994 321,217 906,072 956,360
Amortization of plant & equipment 1,797 1,218 4,928 4,545
Foreign exchange loss/(gain) (109,188) (110,749) (125,986) (63,068)
1,415,691 585,645 2,020,102 1,293,069
Other income and expenses
Gain/(loss) on Newmont common shares 512,800 1,134,457 (109,368) (810,720)
(note 2)
Interest income 1,711 2,461 6,805 7,861
Dividend income 5,100 11,134 18,700 31,110
519,611 1,148,052 (83,863) (771,749)
Net profit/(loss) before income taxes (896,080) 562,407 (2,103,965) (2,064,818)
Recovery of income taxes 160,309 160,309 -
Net Profit/(Loss) for period (735,771) 562,407 (1,943,656) (2,064,818)
Basic and diluted profit/(loss) per (0.025) 0.020 (0.067) (0.072)
common share
Weighted average number of common 29,552,317 28,799,055 29,162,514 28,789,327
shares outstanding
Consolidated statements of deficit
Deficit, beginning of period (11,188,017) (10,668,592) (9,980,132) (8,041,367)
Net profit/(loss) for period (735,771) 562,407 (1,943,656) (2,064,818)
Deficit, end of period (11,923,788) (10,106,185) (11,923,788) (10,106,185)
MOYDOW MINES INTERNATIONAL INC.
CONSOLIDATED STATEMENTS OF CASH FLOW (UNAUDITED)
(expressed in United States dollars, unless
otherwise stated)
Three months ended Nine months ended
Sep-30 Sep-30 Sep-30 Sep-30
2005 2004 2005 2004
Cash provided by (used in) $ $ $ $
Operating activities
Net profit/(loss) for the period (735,771) 562,407 (1,943,656) (2,064,818)
Adjustments for non-cash items:
Stock-based compensation - 346,484 - 346,484
(Gain)/loss on Newmont common shares (512,800) (1,134,457) 109,368 810,720
(note 2)
Write-down of mineral properties 1,235,088 27,475 1,235,088 48,748
(Gain)/loss on other assets (30) (1,067) 1,018 330
Future income taxes (note 3) - - - (1,245,641)
Amortization of capital assets 1,797 1,218 4,928 4,545
(11,716) (197,940) (593,254) (2,099,632)
Changes in non-cash working capital:
Loan receivable - - - 200,000
Accounts receivable and prepaid 198,849 300,961 (186,822) 106,781
expenses
Accounts payable and accrued 311,063 (71,738) (955,870) 709,998
liabilities
509,912 229,223 (1,142,692) 1,016,779
Cash flow from/(used) in operating 498,196 31,283 (1,735,946) (1,082,853)
activities
Investing activities
Exploration of mineral properties (765,015) (499,924) (1,910,306) (1,011,994)
Purchase of fixed assets - - - (5,763)
Proceeds from sale of Newmont shares 414,700 826,457 3,277,832 29,202,480
Cash flow (provided) used in investing (350,315) 326,533 1,367,526 28,184,723
activities
Financing activities
Issue of shares 265,090 7,795 265,090 7,795
Distribution to shareholders - - - (27,576,000)
Cash flow from/(used) financing 265,090 7,795 265,090 (27,568,205)
activities
Increase/(decrease) in cash and cash 412,971 365,611 (103,330) (466,335)
equivalents
Cash and cash equivalents at beginning 292,020 282,124 808,321 1,114,070
of period
Cash and cash equivalents at end of 704,991 647,735 704,991 647,735
period
MOYDOW MINES INTERNATIONAL INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(expressed in United States dollars, unless otherwise stated)
1) Basis of presentation and consolidation
These consolidated financial statements have been prepared in accordance with
Canadian generally accepted accounting principles. The consolidated financial
statements include the accounts of the Company and its subsidiaries. All
significant inter-company accounts and transactions have been eliminated. In
the opinion of management, all adjustments considered necessary for fair
presentation have been included in these financial statements. Operating
results for the period ended September 30, 2005 are not necessarily indicative
of the results that may be expected for the full year ended December 31, 2005.
For further information, see the Company's consolidated financial statements
including the notes thereto included in the Annual Report for the year ended
December 31, 2004.
2) Newmont common shares
Loss on Newmont common shares comprises: 2005 2004
$ $
First quarter 2005:
Loss on sale of 50,000 shares (2004-nil) (91,270) -
Write-down of remaining Newmont shares to market at March 31 (194,400) (396,000)
Loss on Newmont common shares for the three months to March 31, (285,670) (396,000)
Second quarter 2005:
Loss on sale of 20,000 shares (2004-20,000) (111,098) (132,576)
Write-down of remaining Newmont shares to market at June 30, (225,400) (1,416,600)
Loss on Newmont common shares for the three months to June 30, (336,498) (1,549,176)
Third quarter 2005:
Gain on sale of 10,000 shares (2004-20,000) 24,400 51,257
Write-up of remaining Newmont shares to market at September 30, 488,400 1,083,200
Gain on Newmont common shares for the three months to September 30, 512,800 1,134,457
Net loss for the nine months to September 30, (109,368) (810,720)
The Company's investment in Newmont common shares is carried at the lower of
cost and market value. The market value of the remaining 60,000 Newmont common
shares held at September 30, 2005 was $2,830,000 (2004 - 160,000 at $7,284,800).
3) Mineral properties
The Company, either directly or through certain joint ventures, has obligations
to expend various amounts on its mineral properties and projects in order to
keep its mineral property rights in good standing. All agreements are in the
normal course of business.
Mineral exploration properties in Africa and North America are recorded with
their carrying values as follows:
Angola Sierra Leone Ghana North America Total
$ $ $ $ $
Balance-Dec 31, 2004 371,840 267,401 606,624 818,428 2,064,293
Costs-March 31, 2005 16,563 415,632 69,758 26,847 528,800
Balance-March 31, 2005 388,403 683,033 676,382 845,275 2,593,093
Costs-June 30, 2005 206,752 322,614 84,000 3,125 616,491
Balance-June 30, 2005 595,155 1,005,647 760,382 848,400 3,209,584
Cost-Sept 30,2005 325,537 298,849 83,176 57,453 765,015
Write-down-Sept 30, 2005 (329,235) (905,853) (1,235,088)
Balance-Sept 30, 2005 920,692 1,304,496 514,323 - 2,739,511
Corporate Information.
Directors and Officers
Noel P. Kiernan - Director, Chairman
Brian P. Kiernan - Director, President & CEO
Sylvester P. Boland - Director, Member of the Audit Committee
Albert C. Gourley - Director
Richard J. Linnell - Director, Member of the Audit Committee
Victor J. E. Jones - Director, Member of the Audit Committee
Michael E. Power - Director, Vice President & Secretary
J. Joseph Breen - COO
Rosemary G. O'Mongain - CFO
Toronto Office and Registered Office
12th Floor
20 Toronto Street
Toronto, Ontario
Canada M5C 2B8
Tel: (416) 703 3751 Fax: (416) 367 3638
Dublin Office
74 Haddington Road
Dublin 4, Ireland
Tel: (353) 1 667 7611 Fax: (353) 1 667 7622
Transfer Agent
Computershare Trust Company of Canada
100 University Avenue, 8th Floor
Toronto, Ontario
Canada M5J 2YI
Exchange Listing
The Toronto Stock Exchange
Symbol: MOY
CUSIP: 62472V 100
Shares outstanding: 30,620,574
Shares fully diluted: 32,820,574
To contact the Company
In order to contact the Company or to request to be added to our mailing list
please email info@moydow.com
website: www.moydow.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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