Preliminary Results 28/2/01
September 10 2001 - 11:34AM
UK Regulatory
RNS Number:7446J
Ovoca Resources PLC
10 September 2001
Ovoca Resources PLC
York House,
Rear 176 Rathgar Road
Dublin 6
Phone Intl + 353 1 491 2944
Fax Intl + 353 1 491 2945
OVOCA RESOURCES PLC
PRELIMINARY STATEMENT FOR YEAR ENDED 28 FEBRUARY 2001
Set out below is an extract from the audited consolidated financial statements
of Ovoca Resources PLC for the year ended 28th February 2001.
For further information contact Mr. John O'Connor, (01) 491 2944.
Copies of this report will be available at the Company's offices at
York House, Rear 176 Rathgar Road, Dublin 6.
4 September 2001.
Ovoca Resources plc
Chief executive's exploration report
The past year has seen your company consolidate its position in relation to
our primary objectives, even though it has been an extremely difficult year
for mineral exploration companies. The very low prevailing zinc price has
seriously limited funding for mineral exploration activities with many majors
sharply reducing their exploration budgets and many putting all exploration
activities on hold. Likewise investor confidence has taken a large hit and
fund raising potential for typical exploration activities is at present at a
very low point. In conjunction with this, the foot and mouth outbreak halted
all field work for a large part of the year thus limiting exploration
programs.
None of this however alters in any way the clear potential of Ireland as a
province for the discovery of major zinc - lead deposits. Given the
fundamental need for base metals in the world economy and the consequential
inevitable upturn in the exploration cycle, the challenge for your company at
this time is to keep a trim but active exploration program in place at minimal
cost to shareholders and which at the same time is so structured to stand a
real chance of early success.
Against this background your company has moved as follows. Licences which,
following intensive exploration, had not shown real encouragement and which
were facing into extensive exploration commitments were dispensed with. This
is a normal part of an exploration program but in the current situation
surrender dates were brought forward where it was deemed appropriate. Thus
during the last year three licences in Co. Tipperary (P.L.s 3316, 3319 &
3320), three licences in East Galway (P.L.s 769, 2695 & 3507) and one licence
in Co Longford (P.L. 186) were surrendered.
Simultaneously licences such as the Galway Roscommon and Cahir groups, which
are seen as areas of positive potential have been put into the proposed joint
venture with Amcorp Ireland Limited., a subsidiary of the Anglo American
mining group. Details of this arrangement have been previously announced to
you. The position with these licences is that Ovoca work has developed a
situation where they are seen to have a significant potential for base metal
deposits but the point has now been reached where the level of funding
required to further develop these properties would be outside the scope of
your company in the present climate. The final joint venture document has not
as yet been fully completed but is in the very final stage. This is not a
cause for concern as the document is designed to cater for all possible
outcomes envisaged in a long term relationship and it is in the interests of
both parties to be satisfied with all the details. Neither has this delayed
field activities and these have been pressing ahead. All past data has been
analysed and a high-resolution airborne magnetic (HIRAM) survey has been
completed and processed on both blocks of ground. It is hoped that further
work will lead to a drilling phase before the year ends. Overall your company
feels that the exploration of these licences is progressing at good pace.
Your company retains the Limerick (NCW) licence block within its own active
exploration portfolio. It regards the ground as optimum potential and recent
work has advanced our knowledge of the geology greatly over the last year. A
hole drilled at the north end of PL 3545 intersected base of Reef at over 700
metres, and disclosed a geologic environment of positive potential. Further
drilling appears warranted but an adequate program would require substantial
funding. A joint venture approach is seen as one possible way forward but your
board wish to fully consider the situation before coming to a final decision.
Given that exploration commitments have been met for the immediate future
here, a reasonable period of time remains to decide how best to progress the
situation.
Your company has previously announced its acquisition of two further
prospecting licences in Co Clare (P.L.s. 3509 & 3806). New and more
sophisticated geophysical techniques are now currently being applied here and
results are presently coming to hand. The techniques employed here make use of
ultra modern high-speed exploration technology and should lead to a much more
cost effective exploration.
Ovoca Resources plc
Chief executive's exploration report (continued)
Your company continues to monitor new exploration opportunities but as
indicated any new ground acquisitions will be on a basis of prudent assessment
of potential versus expenditure required to fund a realistic exploration
program.
General Matters
On 8 June 2001 your company was pleased to announce that Mercury Holdings plc
had taken a placing of shares in Ovoca. It was also announced that both
Mercury and Ovoca would be holding talks with a view to examining further
ventures of mutual interest. We are now pleased to announce that both parties
have taken the step of setting up a joint venture vehicle to examine a
particular development opportunity in the energy field. We hope that such
research will lead to the emergence of substantial projects in due course.
Frank Buckley 4 September 2001
Chief Executive
Ovoca Resources plc
Consolidated profit and loss account
for the year ended 28 February 2001
2001 2000
IR# IR#
Administrative expenses (168,229) (151,869)
Other operating income 750 -
Operating loss - continuing operations (167,479) (151,869)
Interest receivable (net) 6,411 14,326
Loss on ordinary activities before taxation (161,068) (137,543)
Tax on loss on ordinary activities 25,343 -
Loss for the financial year (135,725) (137,543)
Profit and loss account at beginning of year (3,906,821) (3,769,278)
Profit and loss account at end of year (4,042,546) (3,906,821)
Basic loss per ordinary share (0.49)p (0.50)p
Ovoca Resources plc
Consolidated statement of total recognised gains and losses
for the year ended 28 February 2001
2001 2000
IR# IR#
Loss for the financial year (135,725) (137,543)
Unrealised surplus on revaluation - 136,000
of property
Total recognised losses for the year (135,725) (1,543)
Ovoca Resources plc
Consolidated balance sheet
at 28 February 2001
2001 2000
IR# IR#
Fixed assets
Intangible assets 2,351,231 2,111,290
Tangible assets 194,441 182,367
2,545,672 2,293,657
Current assets
Debtors 75,229 98,886
Cash at bank and in hand 14,620 350,056
89,849 448,942
Creditors: Amounts falling due (163,112) (154,715)
within one year
Net current (liabilities)/assets (73,263) 294,227
Net assets 2,472,409 2,587,884
Financed by:
Capital and reserves
Called-up share capital 551,664 549,364
Share premium account 5,827,291 5,809,341
Revaluation reserve 136,000 136,000
Profit and loss account (4,042,546) (3,906,821)
Shareholders' funds - equity 2,472,409 2,587,884
Ovoca Resources plc
Consolidated cash flow statement
for the year ended 28 February 2001
2001 2000
IR# IR#
Net cash outflow from
operating activities (127,185) (168,163)
Returns on investments and servicing
of finance
Interest received - net 8,921 17,616
Net cash inflow from returns
on investments and servicing of finance 8,921 17,616
Tax paid - -
Capital expenditure and financial investment
Purchase of tangible assets (23,341) (32,204)
Purchase of intangible assets (214,081) (250,727)
Net cash outflow from capital expenditure
and financial investment (237,422) (282,931)
Net cash outflow before financing
and use of liquid resources (355,686) (433,478)
Financing
Proceeds received from issue of share capital 20,250 294,702
Net cash transferred from/(to) liquid resources 336,717 (342,678)
Net cash inflow/(outflow) from financing
and use of liquid resources 356,967 (47,976)
Increase/(decrease) in cash in the year 1,281 (481,454)
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