Final Results
Thursday 30 October 2008
Results for the year ended 30 September 2008
Chairman's statement
I am pleased to present my seventh annual statement to Shareholders
for the year ended 30 September 2008.
Review of the current market
After six years of steady progress, this year my annual report shows
that your Company is not immune from the turmoil we have all seen in
world markets during the past year. By any measure, the declared
trading loss is high and the net asset value has fallen by 78% since
September 2007. This is not pleasant for you, our Shareholders, nor
for your Board.
Whilst we must face the past, we must also look to the future. In
spite of the recent gloom in world markets, it continues to be the
belief of the Board that your Company is well placed to take
advantage of the improvement in world commodity markets which must
follow a necessary period of turmoil as true asset values are
re-established in the financial markets. Also, we continue to
believe that millions of people in the fast developing countries of
China, India, Pakistan and elsewhere will demand many of the everyday
products which we in the West take for granted: refrigerators,
washing machines, motor cars, mobile telephones are but a few. The
manufacture of such products demands iron ore, nickel, manganese,
tantalum and many other natural resources which these countries do
not have in sufficient quantities if at all; Starvest is in business
to support those exploring for such essential minerals; some have
found them in commercial quantities and are actively engaged in the
long process of realising value. Whilst there are often temporary
setbacks, it remains our belief that many of the trading companies we
support will repay our faith in the days ahead. We have a
fundamental belief in a future for these companies, some of which we
believe to have great projects and promise.
Where we have diversified away from mineral exploration, we have not
covered ourselves in glory. In particular, we are most disappointed
by the demise of Myhome International plc, a company we were pleased
to support five years ago and which became a significant contributor
to the value of our portfolio during 2007. Since the balance sheet
date, DTT plc has announced the appointment of a receiver. The total
loss on these companies was �236,787. Others are struggling; we have
provided a detailed commentary in the following pages.
Over the next year or so, we will contain our overheads to the
minimum, seek to use the limited cash resources to best advantage and
otherwise be patient as we await a recovery.
Trading activity
In furtherance of the stated trading objectives, during the year
Starvest has supported three new mineral exploration companies, Alba
Mineral Resources plc, CAP Energy Limited and Lisungwe plc. In
addition, follow-on support has been given to fifteen companies,
either through market purchases or by subscriptions to new issue
placings.
Trading portfolio valuation
In view of the current economic challenges, this year we have taken
the opportunity to critically examine the valuations we place on all
our trading investments. Accordingly, we have taken a cautious view
and valued them all at bid price or lower where we believe those
facts of which we are aware cast doubt on the market prices or where
the Company's interest is of such a size as to inhibit selling into a
depressed market. This explains the trading portfolio valuation of
�3.9m and the greater part of the loss of �3.7m before taxation, see
note 8 to the financial statements.
To some extent we expect that the latter will be ameliorated by a
partial recovery of the tax paid on the exceptional profits of 2007.
Since making the quarterly net asset value announcement of �6.44m on
1 October 2008, the Board has reassessed the values attributed to
some holdings as a result of which a further provision of �2.5m has
been made. The adjusted values are included in the following table.
Company statistics
30 September 30 September Change
2008 2007 %
at BID at MID values
values as
adjusted
* Trading portfolio value �3.9m �17.6m -78
* Company asset value net of debt �3.4m �15.1m -78
* Net asset value - fully diluted 9.06p 38.45p -77
per share
* Closing share price 12.25p 29.75p - 59
* Premium/(discount) to net asset 35% (22.63%)
value
* Market capitalisation �4.28m �10.46m - 59
The net asset values at 30 September 2008 are based on bid prices or
the Directors' valuation, if lower. The values at 30 September 2007
are based on mid market values or the Directors' valuation, if
lower. These values include unrealised gains on elements of the
trading portfolio that are not reflected in the financial statements.
Dividends
Owing to the depletion of cash resources and the overall result, it
is not our intention to pay a dividend this year. For the future,
your Board will keep the matter under review.
Shareholder information
The Company's shares are traded on AIM and PLUS.
Announcements made to the London Stock Exchange are sent to those who
register at the Company website, www.starvest.co.uk where historic
reports and announcements are also available.
Annual general meeting
We plan to hold our annual general meeting at 3.00 pm on Wednesday 10
December 2008 when we look forward to meeting those Shareholders able
to attend.
R Bruce Rowan
Chairman & Chief Executive
29 October 2008
Review of trading portfolio
As at 30 September 2008, the portfolio comprised interests in the
following companies:
Addworth plc - AIM ticker: ADW - quotation suspended
Website: www.addworth.co.uk
Addworth is an active capital investment company specialising in the
financing, promotion and launching of early-stage
entrepreneurially-managed companies, seeking eventual admission to
the AIM or Plus markets. Addworth provides strategic consultancy
services for their further development while retaining key equity
interests for its own investment portfolio. Difficult market
conditions this year have seriously impacted on the flow of suitable
opportunities for new quoted introductions, and in turn have reduced
current income generation from these activities. In addition,
Addworth's core investment portfolio has inevitably declined in value
along with the general depression in junior market share values, and
thus restricted its fund-raising possibilities. Therefore,
management has reduced its activity in identifying new flotation
projects as part of a provisional cost-cutting exercise and requested
the suspension of its share listing while it re-defines its future
strategy.
Agricola Resources plc - PLUS ticker: AGRI
Website: www.agricolaresources.com
Agricola Resources is focused on mineral exploration and development
in the Baltic Region. Its principal interests are in Sweden, where
it has six areas under exploration licences covering 171 square
kilometers, considered prospective for uranium or for nickel, copper,
and platinum group elements; also, it is in joint venture with
Beowulf Mining plc over four licences covering 110 square kilometers
in the Ballek area which are considered prospective for iron oxide,
copper, gold and uranium deposits. The Australian concern, Energy
Ventures Limited, holds a 29.9% strategic equity stake in Agricola
Resources which has enabled the considerable broadening of Agricola's
exploration endeavours and its technical resources.
Alba Mineral Resources plc - AIM ticker: ALBA
Website: www.albamineralresources.com
Alba Mineral Resources is a mineral explorer focusing on nickel,
uranium and gold prospects in Scotland, Mauritania, Sweden, and
Ireland. Additional fund-raising in late 2007 and in July 2008 has
been primarily expended on ground exploration work in Mauritania
where Alba has established a jointly-owned company and acquired seven
uranium exploration licences covering 13,500 sq. km of prospective
ground, while still negotiating for five further permits in Southern
Mauritania for iron oxide-copper-gold style mineralisation. Several
companies have approached Alba towards establishing joint venture
operations in Mauritania and discussions are in progress.
Ariana Resources plc - AIM ticker: AAU
Website: www.arianaresources.co.uk
Ariana Resources is exploring for, acquiring and developing economic
gold deposits in Turkey, concentrating on the Tethyan metallogenic
belt, which is believed to host a multi-million ounce world-class
deposit. Its flagship project is the 235 sq. km. Sindirgi project
acquired from Newmont in 2005, with a current JORC resource of
160,000 oz gold equivalent. Ariana has since acquired from
TSX-listed Odyssey Resources the contiguous Tavsan gold project and
has recently announced an initial JORC resource of 215,000 oz of gold
equivalent which it expects to be able to expand significantly
through a scheduled programme of additional drilling, with
preparations now underway for a scoping study on a 30,000 oz per
annum heap-leach operation. Ariana also has a joint venture agreement
covering its north-eastern Turkey projects with European Goldfields
Limited, now a 20% Ariana shareholder. Meanwhile the impact of the
global credit crisis, the weakening US Dollar, and rising levels of
inflation are expected to continue to sustain and enhance the record
gold price levels seen over the past year and thus Ariana's own
potential.
Belmore Resources (Holdings) plc - PLUS ticker: BEL
Website: www.belmoreresources.com
Belmore Resources is a minerals exploration company focusing solely
on projects in the Republic of Ireland, priority being given to its
zinc exploration properties in County Clare, where it has a 50%
interest (with an extra 20% option for Euro 600,000 expenditure) in
six prospecting licences and a 100% interest in three further
prospecting licences. Previous exploration had identified a high
grade resource of zinc and lead-rich massive sulphides of
approximately 400,000 tonnes @12% zinc plus lead and 75 g/t silver.
April brought an announcement of a new high grade zinc/lead
mineralization discovery from diamond drilling of 10 metres of 13.84%
zinc plus 5.52% lead and 63 g/t silver which management rated as
highly significant. Further diamond drilling will be necessary to
determine the extent of the mineralisation while management evaluates
these results and determines future strategy.
Beowulf Mining plc - AIM ticker: BEM
Website: www.beowulfmining.com
Beowulf Mining's focus is on the exploration and development of
mineral deposits in Northern Sweden, where it has five separate
projects covering iron, gold, copper and uranium. With its shares
now quoted on both the AIM and Stockholm's AktieTorget markets,
Beowulf's most advanced project is the iron titanium Ruoutevare
deposit, with a JORC compliant resource of 140 million tonnes,
grading 39.1% iron, 5.7% titanium dioxide, and 0.2% vanadium oxide.
The capital cost of bringing a mine to production is estimated at
US$300 million, and an annual mined production is targeted at 23
million tonnes, or 10 million tones of ore.
Beowulf has other interests in copper-gold at Balleck and Jokmokk,
gold at Grundtrask where drilling continues towards an estimated
deposit of 500,000 oz, and magnetite at Kallak, all of which have
seen progress in the past year. In addition, its Lulepotten
copper-gold deposit has a JORC inferred resource of 43,000 tonnes of
copper and 52,000 oz of gold.
Black Rock Oil & Gas plc - AIM ticker: BLR
Website: www.blackrockoilandgasplc.co.uk
Black Rock Oil & Gas is an exploration and production company. In
addition to licences in the Southern Gas Basin of the UK North Sea,
its principal interest is a 50/50 joint venture with Kappa Resources
Colombia, a subsidiary of Kappa Energy Holdings Limited and the
operator of the Las Quinchas Association Contract and the Alhucema E
& P Contract, both situated in the prolific hydrocarbon basin of the
Middle Magdalena Valley. In July 2008 the entire Kappa Group was
acquired by the Canadian Pacific Rubiales Group, which led to the
issue of an independent Petrotech Report assessing the underlying
value of the Colombian interests as significantly in excess of Black
Rock's full market capitalisation of �0.6 million at a 2p share
price. The Colombian interests have a net book asset value of �3
million. Close attention to financing needs has seen management
changes, wide-ranging operational cost reductions, lower working
capital requirements and led to an active search for potential merger
opportunities or new partners, as yet without success. Meanwhile the
funding of the Colombian interests has been met through a private
Canadian company, Prospero Hydrocarbons. Black Rock has sold its
remaining Australian interests and is seeking a buyer or farm-in
partner for all its UK Southern North Sea gas interests which include
a 15% interest in the Monterey field.
Brazilian Diamonds plc - AIM ticker: BDY
Website: www.braziliandiamonds.com
Brazilian Diamonds is a leading Brazil-based exploration company
focusing on the discovery of kimberlites in its 100% owned properties
in the States of Minas Gerais and Bahia. Its diamond exploration
databases were largely acquired from De Beers. The Company has been
awaiting the approval of the Brazilian Congress to the boundaries set
for the Sierra da Canastra National Park, and the exclusion therefrom
of the Company's development area of the Canastra 1 kimberlite, for
which mine feasibility work has been completed, Mines Department
approval granted, and commencement of trial mining only withheld
pending this approval. Recoveries from the Salvador 1 Project have
established that the kimberlite is diamondiferous and would feed the
important alluvial deposits of Central Bahia, which has clear
beneficial implications for further exploration work in the
neighbouring downstream areas acquired by the Company.
CAP Energy Limited - PLUS ticker: CAPP
Website: www.capenergy.co.uk
CAP Energy started its investment operations by acquiring smaller oil
and gas exploration and production assets focusing on North America,
where opportunities for acquiring projects abandoned or uneconomical
for major producers to which they apply remediation processes
combined with low overhead levels offer the prospect of attractive
returns in the face of rising oil and gas prices. Intensified
competition for such opportunities and increasing remediation costs
led to CAP Energy selling some of its first acquisitions and
confining subsequent purchases to more economic projects requiring
less working capital. Its latest and most significant acquisition is
a 25% interest in ten recently drilled oil wells, seven already being
producers, in the Louisiana Starks Dome oilfield, bought for US$1
million consideration from CSV Holdings Inc. CSV's interest will
remain under 30%.
Carpathian Resources Ltd - AIM ticker: CPNR, and Sydney
ASX
Website: www.carpathian.com.au
Carpathian Resources is an Australian oil and gas explorer and
producer focusing on projects in Central Europe, especially the Czech
Republic. Its main producing asset is the Janovice gas field in
Northern Moravia (60% interest) but declining production rates
coupled with the shutting-in of the adjacent Krasna oil field caused
an overall 40% decrease in production over the year, impacting on
Company revenues and resulting in increased losses. Janovice
produced at an average daily rate of 34,000 cubic metres of gas in
the year to end June, but this was reduced to 20,000 cubic metres in
order to stabilise a small amount of water overflow. Exploration
activities covered the Mosnov, Roznov, and Morava permits (90%
interests, contributing 100%) and the Raskovice -Moravka permit (60%
interest); the Morava project is located in the northern part of the
Vienna Basin, an area of prolific oil and gas production, and while
oil is the principal target, gas is seen as a possibility. Following
last year's Board restructuring, a new corporate growth strategy is
expected of evaluating and acquiring interests in Russian, European,
Middle Eastern, and Kazakhstan oil and gas fields and infrastructure,
with further fund-raising highly likely.
Concorde Oil & Gas plc - PLUS quotation suspended
Concorde was incorporated in August 2005 to locate, evaluate,
acquire, explore, develop and operate oil and gas properties and
projects primarily in the Russian Federation. After initial
difficulties in raising finance for its first major acquisition
target, Pechora Energy, Concorde's shares were suspended in May 2006
and remain so to this day. We await news as to when and where
re-listing will be undertaken for what is now a much enlarged
entity. Pechora holds an exclusive production licence valid until
2014 for the Luzkoye oil field in the Komi Republic of Russia. The
US$33 million acquisition of Pechora, was funded by investment fund
managers Altima Partners and Kuwait Energy Limited with a US$41
million injection through the issue of 113 million new Concorde
shares at 0.9p a share and convertible loan notes. Ongoing Pechora
development plans costing US$125 million will require further
funding, and a loan of up to US$50 million is currently being sought
from the European Bank for Reconstruction and Development. Original
shareholders have faced a substantial dilution, but should have an
investment in a much larger company when a market quote is restored.
Kuwait Energy now has a 37% interest and Altima funds 44%. A report
due soon is expected to show increased production levels as a result
of wells in production increasing from two to seven.
The Core Business plc - AIM ticker: CORE
Website: www.thecorebusiness.co.uk
The Core Business focuses primarily on the distribution of branded
cosmetics to major retailers. As a personal care and beauty
management group, it also provides consultancy services to companies
and individuals in the development of existing brands and the
creating of new ones. It has attracted considerable retailer
interest through dynamic presentation of its brands which range from
colour cosmetics, beauty and hair accessories, sun and skincare
products, to fragrances, the latter having been launched this year in
Superdrug stores throughout the UK. Significant growth has been
achieved since last year's reverse take-over of Amirose International
with first break-even results anticipated for the current year.
DTT plc, in receivership - PLUS quotation suspended
Despite having become the UK's largest specialist group for the
training and supply of vocational drivers to the freight and
passenger transport sectors, it is regrettable that in early October
2008 the DTT management were forced to call in a receiver. This is
especially sad given the enormous progress made by the new management
team which took over in the third quarter 2007; significant new
business was being won, costs were cut, and cash flow was improving.
However, against the background of a deteriorating economic climate,
the directors failed in their repeated attempts to raise necessary
fresh capital to see the business through to profitability.
Equity Resources plc (formerly Franchise Investment Strategies) -
PLUS ticker: EQRP
With Equity Resources suffering severely from presumed total losses
to be incurred on its two investments in DTT and Myhome International
as a result of their recently entering receivership, Equity Resources
has had to consider how it should refocus operations away from its
past objective of locating and investing in promising franchise
businesses. Shareholders and the market will be advised of
developments in the coming weeks.
Franconia Minerals Corporation - Toronto TSX-V: FRA
Website: www.franconiaminerals.com
Franconia Minerals, an Alberta-formed corporation, is focused on the
exploration and development of platinum group metals (PGM) and base
metals in the continental United States, with its corporate head
office located in Spokane, Washington. Its most advanced project is
at Birch Lake located in the Duluth Complex in north-eastern
Minnesota, positioned to be one of the world's largest
copper-nickel-PGM resources. Reflecting a recent independent scoping
study, the project now includes three indicated Cu-Ni-PGM open pit
resources, the 108 million tonnes (plus 87 million tones inferred)
Birch Lake resource, the 120 million tonnes Maturi resource, and the
124 million tonnes Spruce Road open pit resource. The company is
also actively exploring for base metals at its Red Knoll copper
property in Arizona. Franconia has exploration agreements with Teck
Cominco American Inc. to advance zinc and copper projects in the
western United States.
Fundy Minerals Limited - PLUS ticker: FUND
Website: www.fundyminerals.com
Fundy Minerals is actively involved in the exploration of gold,
diamonds and base metals in Canada and Africa, and the exploration
and development of mineral properties including a number in New
Brunswick, all prospects having shown encouraging confirmation of
mineralized zones based on work conducted, while also has a
high-grade limestone deposit which it aims to bring into production
in due course. In West Africa, Fundy holds a minerals exploration
licence over 1000 sq. km. of land in Liberia, having recently
received a licence permit for its Sehnkweh Cestos claim, one of the
first such licence permits to be issued by the Liberian Government
since its imposed moratorium. The Company's initial interest in
Liberia was in gold discoveries along the Cestos shear and Todi shear
belts where exploration work is continuing. However following
Fundy's alluvial diamond discovery in the southern area of its
permit, and significant quantities of gem quality alluvial diamonds
having been previously extracted by artisan miners, Fundy's main
efforts remain concentrated on locating the Kimberlitic source of its
discovery. Diamond discoveries have been made other than in alluvial
watercourses and wetland depressions, so an extensive geophysical
survey over the new discovery area is now also being planned.
Gippsland Limited - AIM ticker: GIP and Sydney ASX
Website: www.gippslandltd.com.au
Gippsland is an Australian-based international resource company with
its prime assets being tantalum-tin projects in the Central Eastern
desert of Egypt adjacent to the Red Sea, and notably include the 44
million tonne (73% measured and indicated) Abu Dabbab and the 98
million tonne Nuweibi projects, where its 50% interest is matched by
an Egyptian State partner. The Abu Dabbab project, with an annual
mill-feed rate of 2 million tonnes for a production level in excess
of 650,000 lbs of tantalum pentoxide, will rank Gippsland as the
world's second largest producer. Capital cost is estimated at US$125
million, with funding planned on an 80% debt and 20% equity basis. A
10 year off-take has been agreed with the German HC Starck group for
a major part of the production; negotiations on both project
financing with the German State-owned KfW Group, and on the
engineering, procurement and construction management contract are
both nearing conclusion. Also, Gippsland has undertaken exploration
drilling within the Wadi Allaqi region where it has obtained highly
encouraging gold results in three of its eight separate tenements,
together with a copper-nickel deposit. Gippsland controls its
Egyptian 50:50 joint ventures through its Board's casting vote.
Gippsland also has a 50% interest in the Tasmanian Zeehan tin
deposit, with an indicated and inferred resource of 7.3 million
tones.
Goliath Resources Inc - Toronto TSX
Website: www.goliathresources.com
Goliath Resources is a Vancouver-based minerals exploration company
with interests in copper, gold and molybdenum in Canada and Zambia
acquired from the BellMin Group in late 2006, the main focus being on
the Phelps Dodge-owned Mazenod Lake largely unexplored property in
the North-West Territories, where under a joint venture agreement
Goliath will ultimately earn a 75% interest. Previous drilling and
geophysics identified project areas of mineralisation prospective for
large-scale copper, gold and possibly uranium. The second project is
the Flume Licence in the Yukon, again owned by Phelps Dodge, in which
Goliath has the right to earn a 100% interest under earn-in
expenditure commitments and where drilling commenced in August; large
areas of this project are as yet unexplored, but earlier geochemical
studies indicated a high potential for gold mineralisation. The
third project is the Java property in British Columbia, a
copper-molybdenum porphyry prospect formerly owned by Kennecott. The
Zambia project involves 40% interest in a Goliath-led consortium
which has been issued a 25 year mining licence covering main tailing
dumps of 150 million tons in the Zambian Copper Belt; their treatment
is seen to have substantial near-term cash-flow potential;
discussions continue on metallurgical test-work and possible process
routes.
Greatland Gold plc - AIM ticker: GGP
Website: www.greatlandgold.com
Greatland Gold has gold projects covering a total area of some 300
sq.km. in Tasmania, consisting of the Firetower project in the North
with an initial inferred JORC-compliant resource of 90,000 oz. of
gold and three historic gold fields, Warrentinna, Forrester and
Waterhouse, which were mined some 100 years ago and had produced a
substantial amount of high grade gold at surface. In addition to
these Tasmanian interests, all 100% owned, the company has the 40 km
long Lackman Rock site in Western Australia where gold and nickel
sulphide have been ear-marked as targets for future exploration
drilling. The main focus of the company until now has been on
Firetower, and deciding whether to mine an existing resource of
50,000 oz or whether to establish first a larger resource and then to
build its own mine; only 400 metres of its suggested 6 kilometre
mineralisation have so far been investigated. Meanwhile while rock
chip sampling at Warrentinna had yielded encouraging results,
subsequent drilling results rather disappointed the market.
Greatland's aim to become a stand-alone producer nonetheless remains
on course but will require the raising of significant extra capital
to bring Firetower into production.
Guild Acquisitions plc - PLUS ticker: GACQ
Guild Acquisitions is a fledgling investment trading company
established to grow early-stage small to medium-sized companies by
injecting seed capital, management support, and access to further
funds from capital markets for their development. A shortage of
available funds and the ongoing financial uncertainties of the
current market have restricted the opportunities in recent months for
seed capital investments.
Hidefield Gold plc - AIM ticker: HIF
Website: www.hidefieldgold.com
Hidefield focuses on the acquisition and development of highly
prospective gold projects in South America and Alaska held directly,
while others in Canada, Nevada and Arizona are held in independent
self-funded associate companies. Its direct interests are
principally in Argentina where it is actively exploring the advanced
stage Don Nicolas gold project in Santa Cruz Province and in joint
venture with Minera Sud S.A. in three Patagonia provinces. Further
impressive gold mineralisation results have been announced for the
ongoing drilling programme in Santa Cruz where a JORC compliant
resource of 1.2 million tones has been established, with 301,000
ounces of gold using a high grade cut of 90 gpt gold. Joint venture
negotiations are nearing completion on the advanced stage Cata Preta
gold project in Brazil's Minas Gerais state. In Alaska, Hidefield
has a 60% interest in the Golden Zone and South Estelle projects with
an option to earn up to 100% subject to its expenditures. The Golden
Zone property has a measured and indicated resource of 253,000 oz of
gold, 1.2 million oz of silver, and 6.1 million pounds of copper.
Hidefield has warned that if it is unable to secure further finance
to continue exploration, it may have to sell certain properties or
projects which it would very much prefer to explore itself.
India Star Energy plc - AIM ticker: INDY
Website: www.indiastarenergy.co.uk
India Star Energy is an investment company focused on gold, platinum
group metals and uranium interests in Canada. Investments include a
15% stake in Canadian Golden Dragon with interests in two high grade
platinum and palladium properties in Ontario; an interest in Canadian
explorer East West Resources Corporation with a portfolio of early
stage properties for platinum, palladium, gold and base metals, a
copper-molybdenum deposit in Thunder Bay, and a 50% share in the
Magotte joint venture with East West Resources in Ontario, targeting
uranium.
Kefi Minerals plc - AIM ticker: KEFI
Website: www.kefi-minerals.com
Kefi Minerals, a spin-off from EMED plc, is an early stage gold and
copper exploration company with six 100%-owned projects in Turkey.
It owns an extensive exploration database which contains information
regarding one hundred further prospective sites in Turkey, where
recent changes to the mining law and the progressive development
attitude of the Turkish Government have generated a positive
environment for exploration and mining companies: the absence of any
national public exploration archiving system in Turkey adds to the
value of Kefi's high quality prospecting reconnaissance database.
Kefi's two most advanced exploration projects are Artvin in the
North East and Derinin Tepe in the West. The Artvin Project
comprises fifteen exploration licences covering 253 sq. km. A gold
discovery at its Yanikli Prospect has already been announced. The
Derinin Tepe gold prospect was mined in Roman times and Kefi carried
out a nine hole diamond drilling programme there last year. Kefi
should be producing by 2013 and its strategy already includes
building a shareholder base in Turkey and actively participating in
the Government tender process so as to acquire further high quality
tenure. Kefi has relinquished its Lehovo interest but continues to
evaluate other opportunities in Bulgaria.
Lisungwe plc -PLUS ticker: LIS
Website: www.lisungwe.com
Lisungwe, one of our new investments during the year, explores for
minerals over various tenements in Malawi, a small southern African
country, where using local labour and having dug over 800 pits at
Chimimbe Hill it has identified nickel in quantities and of
sufficient grade as to justify extensive drilling, the development of
nickel extraction techniques through leaching and the preparation of
an initial scoping study for a mine, all of which are currently in
process. Procedures and quality controls are in place towards
establishing a JORC compliant resource. Lisungwe also has other
nickel prospects as well as in gold and uranium
Lotus Resources plc - PLUS ticker: LOTP
Website: www.lotus-resources.com
Lotus Resources is a UK holding company seeking to identify and
acquire mining and exploration companies in China whose operations
are not currently realising their full potential. Its objective is
to build a medium scale mining and exploration company within three
years with a balanced portfolio of properties and product
commodities. Several potential opportunities have been
investigated.
Matisse Holdings plc - AIM quotation suspended
Matisse Holdings was originally established for investment in
publishing businesses. It has been strategically seeking either
reverse take-overs or key acquisitions, but presently has its shares
suspended through the application of AIM regulations governing
inactive cash shells.
Myhome International plc, in administration - AIM quotation
suspended
Website: www.myhomeplc.com
Myhome International was a leading residential homecare services
franchise business seeking rapid expansion throughout the UK, Ireland
and Australia. After a series of attractive and successful minor
acquisitions made essentially out of equity and existing cash
resources, management elected to finance half of a major �16 million
acquisition by bank debt, with attendant tough covenants which later
could not be respected. This led the lending bank to appoint an
administrator to the Group followed by an almost immediate sale of
the assets by the administrator. Changes in the management team and
acquisition integration complications seem to have caused serious
concurrent distractions in the overall management of the Group.
Myhome was always rather more a long-term investment proposition,
but suffered from the instability of being the object of significant
short-term market speculation, resulting in a somewhat volatile share
performance. Regrettably shareholders should not expect any pay-out
from the receiver, as asset realisations will be insufficient to meet
creditor claims.
Oracle Coalfields plc - PLUS ticker: ORCP
Website: www.oraclecoalfields.com
Oracle Coalfields is an emerging coal developer in Pakistan with an
80% interest in a 1.4 billion tonnes resource project located in
Block V1 of the Thar Desert in the Sindh province, 380 km east of
Karachi and further away from the insecurity of the north western
frontier region. It benefits from past major infrastructure
investment by the Pakistan Government. The mine development project
will be integrated with the construction of a mine-mouth 300MWe power
plant. Initial production is planned for early 2010, and while the
mine design will allow for an annual production of 2.5 million
tonnes, this will only be achieved by 2014, when the completed power
plant will be in operation. The power plant's annual intake from the
mine will be 1.75 million tonnes, any balance being sold to local
industry unless further capacity is added to the power plant.
Pakistan suffers from critical shortages of electricity supply
expected to continue for the next 20 years, but with a major
indigenous but unexploited coal resource. Oracle is seen as a vital
participant in the development of Pakistan's economy especially as no
rival coal mining projects have materialised or are in prospect.
Current plans are for further drilling to achieve a JORC resource and
to complete a bankable feasibility study by end 2009.
Red Rock Resources plc - AIM ticker: RRR
Website: www.rrrplc.com
Red Rock, in which Regency Mines holds a 37.7% interest, operates as
a mineral exploration and development company, focusing on manganese,
iron ore and gold properties in Australia and Zambia. During 2007,
its uranium portfolio was sold to Retail Star Ltd, since renamed
Resource Star Limited (RSL), in exchange for shares, a deal that gave
it an initial 15% interest in RSL and effective management control of
the RSL board, as well as access to RSL's cash resources to enable
continuing exploration work on its former properties. Red Rock's
principal manganese interests are centred on its 695 sq. km.
tenements in the East Pilbara province in Western Australia and on
Chiwefwe in Zambia, where the first phase of an exploration programme
has established an indicated resource of 2.3 million tones of high
grade manganese and where further drilling and exploration are under
way. The iron ore property interests consist of the highly
prospective Mt Alfred in Western Australia and others in the Northern
Territory and Tasmania. Uranium licences are held in Australia's
Northern Territories, while gold prospects are held in Oakover and
Tasmania. Red Rock's portfolio and its readiness to exchange assets
for equity interests at the right price seems likely to see more
deals in the offing.
Regency Mines plc - AIM ticker: RGM
Website: www.regency-mines.com
Regency Mines, apart from its controlling interest in Red Rock
Resources, is primarily focused on exploring areas of copper and
nickel potential at Bundarra in Queensland, Yilgarn in Western
Australia and Mambare Plateau in Papua New Guinea, for gold at Mount
Stone in Queensland and, where appropriate, on the development of
these assets by joint venture, acquisition or disposal. Regency has
built up a sound investment portfolio in a host of small mining
companies, evidencing its well executed strategy of converting
licence interests into equity stakes.
Sheba Exploration (UK) plc - PLUS ticker: SHE
Website: www.shebagold.com
Sheba is a mineral exploration company operating in the Tigray State
of Ethiopia within the Northern Ethiopia gold fields area, which it
specifically chose for its numerous gold occurrences, most of which
have not been explored. Sheba's 100% interest in the two exclusive
exploration licences for Mereto and Shehagne, has been awarded new
concession licences for Una Deriam, Finarwa, and Winibo, all situated
south or west of Moreto, and having specific exploration targets
including gold, and for the first time base metals copper and zinc.
As most of these new areas have not been explored previously,
initial results will be of special interest. Joint venturing of
mature properties, to raise capital for resource estimation and new
property acquisitions, and the initiation of feasibility studies of
small-scale opportunities for mining gold, remain the strategic
objectives for this operation.
St Helen's Capital plc - AIM ticker: SHCP
Website: www.sthelenscapital.com
St Helen's Capital is an institutional stockbroker and corporate
finance adviser to smaller companies, primarily in the early-stage,
and fast-growing category. It is currently corporate broker to
twelve AIM-quoted companies and thirty-four more listed on PLUS. Its
services on offer include corporate finance, fund-raising and
flotations, institutional sales, research, corporate broking, and
dealing/trading services.
Sunrise Diamonds plc - AIM ticker: SDS
Website: www.sunrisediamonds.com
Sunrise Diamonds is focused on the identification, acquisition,
exploration, and development of diamond projects in its present
Finland operations in the Karelian Craton, a prospective block which,
over the border in Russia, hosts a number of world-class
diamondiferous kimberlites, and where it is also exploring in Crib,
Linomonosova in the Arkhangelsk region. Sunrise enjoys exclusive
access to the valuable BHP Billiton data base from its former Finnish
diamond exploration activities.
Treslow Limited
Treslow has a copper-nickel prospect near Armstrong in North West
Ontario, Canada. Following its conversion to a plc and an expected
introduction to PLUS, it will be seeking further funding to advance
the project. Commercial quantities of uranium and rare earths are
also a possibility, but its initial focus is on nickel.
Profit and loss account
for the year ended 30 September 2008
Year ended 30 Year ended 30
September 2008 September 2007
Operating income 16,700 5,494,067
Direct costs (15,430) (104,658)
Gross profit 1,270 5,389,409
Administrative expenses (271,640) (272,076)
Amounts written off trade (3,461,919) (73,266)
investments
Operating (loss)/profit (3,732,289) 5,044,067
Interest receivable 105,054 71,114
Interest payable (98,430) (84,413)
(Loss)/profit on ordinary (3,725,665) 5,030,768
activities before taxation
Tax on profit on ordinary 1,118,201 (1,505,236)
activities
(Loss)/profit on ordinary (2,607,464) 3,525,532
activities after taxation
Loss/earnings per share - basic (7.5) pence 9.6 pence
Loss/earnings per share - fully (7.5) pence 8.8 pence
diluted
There are no recognised gains and losses in either year other than
the result for the year.
All operations are continuing.
Balance sheet
As at 30 September 2008
30 September 2008 30 September 2007
� �
Current assets
Debtors 1,126,908 10,257
Trade investments 2,855,237 4,750,185
Cash at bank - 3,006,588
3,982,145 7,767,030
Creditors - amounts falling (1,619,615) (2,548,969)
due within one year
Net current assets 2,362,530 5,218,061
Share capital and reserves
Called-up share capital 372,173 372,173
Share premium account 2,026,396 2,026,396
Profit and loss account (36,039) 2,819,492
Equity shareholders' funds 2,362,530 5,218,061
Cash flow statement
for the year ended 30 September 2008
Year ended Year ended
30 September 2008 30 September
� 2007
�
Net cash (outflow)/inflow from (1,815,809) 3,484,305
operating activities
Returns on investment and
servicing of finance:
Interest receivable 105,054 71,114
Interest payable (98,430) (84,413)
6,624 (13,299)
Taxation paid (1,509,413) (395,880)
Equity dividends paid (174,587) (367,172)
Financing:
Company shares repurchased (73,480) (577,732)
New short term loan - 1,000,000
(73,480) 422,268
(Decrease)/increase in cash in (3,566,665) 3,130,222
the year
The financial information set out above does not constitute statutory
accounts as defined in section 240 of the Companies Act 1985.
The balance sheet at 30 September 2008, the profit and loss account,
and the cash flow statement for the year then ended have been
extracted from the Company's statutory financial statements upon
which the auditor's opinion is unqualified and does not include any
statement under Section 237 of the Companies Act 1985.
Copies of the report and financial statements will be posted to
Shareholders no later than 14 November and will be available for a
period of one month thereafter from the Company Secretary at the
registered office.
123 Goldsworth Road, Woking, Surrey, GU21 6LR
email: email@starvest.co.uk
Alternatively, the report may be downloaded from the Company's
website, www.starvest.co.uk.
Enquiries to:
* Bruce Rowan, telephone 020 7486 3997
* John Watkins, telephone 01483 771992, or to john@starvest.co.uk
* Gerry Beaney or Colin Aaronson, Grant Thornton Corporate Finance,
telephone 020 7383 5100
END
---END OF MESSAGE---
This announcement was originally distributed by Hugin. The issuer is
solely responsible for the content of this announcement.
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