RNS Number:5589M
Monterrico Metals PLC
20 June 2003
20 June 2003
MONTERRICO METALS PLC
Announcement of preliminary results for the nine month period ending
31 DECEMBER 2002
Monterrico Metals plc ("Monterrico" or the "Group" or the "Company"), the London
based resource development company that operates exclusively in Peru, announces
its preliminary results for the year ended 31 December 2002.
Highlights to date
* Raised #3.0 million and was admitted to AIM on 21 June 2002
* Commenced resource definition drilling and pre-feasibility study at Rio Blanco.
* Rio Blanco drill intercepts include; 106m at 1.44% copper, 222m at 1.19%
copper and 88m at 1.43% copper
* Company's interest in Rio Blanco increased to 100%.
* Completed scout drilling at the Mamanina copper-zinc-gold project
* Entered into farm-in agreements with Minera Calipuy and Newmont Peru on
the Pico Machay and Conaviri gold projects respectively.
Monterrico has a total of 11 minerals properties in Peru. The Company's
strategy is to work toward the development of the Rio Blanco Copper Project and
to engage in joint venture / farm-in type agreements on the other properties.
In doing so, the projects can progress and add further shareholder value,
without diverting Company funds and management's attention from Rio Blanco. In
line with this policy Minera Calipuy will spend up to US$ 4,000,000 to earn a
75% interest in Monterrico's wholly-owned Pico Machay gold project in southern
central Peru. Newmont Peru may earn an initial 60% interest in the Conaviri
property by spending a minimum of US$4,000,000 during the initial four years and
may elect to acquire a further 15% interest, and increase it's participation to
75%, by spending an additional US$6,000,000.
Financial Results
Monterrico raised #3.0 million (#2.57 million net of costs) by placement of 5.55
million ordinary fully paid 10p shares at a price of 54p in June 2002. The
proceeds of the capital raising are being used to fund project development and
administration costs.
Monterrico continued feasibility studies for the development of copper mining
operation at the Rio Blanco Project and the geological investigation of the
Company's other minerals projects in Peru. Monterrico's total investment in
minerals projects in 2002 was #614,768.
The group is working towards development of mining operations and had no income
during the period. The Company recorded a loss of #367,234 for the 9 month
period up to 31 December 2002.
Outlook for 2003
During 2002 and into 2003, Monterrico Metals has made considerable progress in
assessing the development potential of the Rio Blanco Copper Project. Resource
definition drilling has confirmed the presence of a significant tonnage of
soluble copper mineralisation at grades well above industry norms. The
pre-feasibility study of the Rio Blanco project is nearing completion and
Monterrico will work towards the completion of a full engineering feasibility
study for the Rio Blanco Copper Project during 2004.
For further information:
Chris Eager, Chief Executive Tel: 020 7448 5088 / Mobile: 07903 158 301
Monterrico Metals plc
Keith Irons Tel: 020 7444 4155 / Mobile: 07885 356 639
Bankside Consultants
MONTERRICO METALS PLC
CONSOLIDATED SUMMARISED PROFIT AND LOSS ACCOUNT
For the period ended 31 DECEMBER 2002
9 months Period from
ended incorporation to
31 December 31 March
Note 2002 2002
# #
Administrative expenses (366,433) (53,000)
Exploration costs written off (29,000)
Operating loss (395,433) (53,000)
Net interest 27,717 47
Loss on ordinary activities before taxation 2 (367,716) (52,953)
Tax on loss on ordinary activities 3 - -
Profit on ordinary activities after taxation (367,716) (52,953)
Equity minority interest 482
Loss for the financial period transferred from reserves 9 (367,234) (52,953)
Basic and diluted loss per share (pence) 4 (4.2)p (1.3)p
All transactions arise from continuing operations.
CONSOLIDATED STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
9 months Period from
ended incorporation
31 December to 31 March
2002 2002
# #
Loss for the financial period (367,234) (52,953)
Exchange loss on foreign currency net investments (34,927) (9,257)
Total recognised gains and losses for the year (402,161) (62,210)
MONTERRICO METALS PLC
CONSOLIDATED SUMMARISED BALANCE SHEET AT 31 DECEMBER 2002
31 December 31 March
Note 2002 2002
# #
Fixed assets
Intangible assets 5 329,032 213,590
Tangible assets 18,043 935
Investments 6 614,768 -
961,843 214,525
Current assets
Debtors 246,205 192,169
Cash at bank and in hand 1,462,982 76,081
1,709,187 268,250
Creditors: amounts falling due within one year (60,728) (40,833)
Net current assets 1,648,459 227,417
Total assets less current liabilities 2,610,302 441,942
2,610,302 441,942
Capital and reserves
Called up share capital 7 1,030,472 472,076
Share premium account 8 2,044,683 32,076
Profit and loss account 8 (464,371) (62,210)
Shareholders' funds 9 2,610,784 441,942
Minority interest (482) -
2,610,302 441,942
MONTERRICO METALS PLC
CONSOLIDATED SUMMARISED CASH FLOW STATEMENT
For the period ended 31 DECEMBER 2002
9 months Period from
ended incorporation
31 December to 31 March
Note 2002 2002
# #
Net cash inflow from operating activities 10 (434,965) (28,354)
Returns on investments and servicing of finance
Interest received 29,217 47
Interest paid (1,500) -
Net cash inflow from returns on investments and servicing of 27,717 47
finance
Capital expenditure and financial investment
Purchase of tangible fixed assets (17,644) (1,190)
Purchase of intangible fixed assets (144,442) (15,852)
Acquisition of other investments (614,768) (23,816)
Net cash outflow from capital expenditure and financial (776,854) (40,838)
investment
Management of liquid resources
Short-term deposits (1,403,288) (150)
Net cash outflow from management of liquid resources (1,403,288) (150)
Net cash outflow before financing (2,587,390) (69,315)
Financing
Issue of shares 3,002,840 144,152
Share issue costs (431,837) -
Net cash inflow from financing 2,571,003 144,152
(Decrease)/increase in cash 11 (16,387) 74,837
MONTERRICO METALS PLC
NOTES TO THE PRELIMINARY ANNOUNCEMENT
For the period ended 31 DECEMBER 2002
1. BASIS OF PREPARATION
The preliminary announcement has been prepared under the historical cost
convention and in accordance with applicable United Kingdom accounting
standards.
The year end of the holding company, Monterrico Metals plc, was previously 31
March. With effect from 20 May 2002 the year end was changed to 31 December, to
be coterminous with that of the trading subsidiaries. Consequently, these
financial statements present current period information for the 9 months to 31
December 2002, and comparative information drawn up for the first accounting
period ended 31 March 2002.
The principal accounting policies of the Group are set out in the Group's 2002
annual report and financial statements, and the policies have remained unchanged
from the previous period.
2. SEGMENTAL INFORMATION
Geographical segments
All the Group's activities are related to exploration for base and precious
metals mining projects in Peru.
9 months Period from
ended incorporation
31 December to 31 March
2002 2002
# #
Loss before tax:
United Kingdom 332,769 48,022
Cayman Island 5,947 1,053
Peru 29,000 3,878
Total 367,716 52,953
Net assets:
United Kingdom 1,784,837 44,120
Cayman Island (651) (4,872)
Peru 826,116 402,694
Total 2,610,302 441,942
3. TAX ON LOSS ON ORDINARY ACTIVITIES
The tax charge/credit represents:
9 months Period from
ended incorporation
31 December to 31 March
2002 2002
# #
United Kingdom corporation tax at 30% (2002: 30%) - -
TAX ON LOSS ON ORDINARY ACTIVITIES (CONTINUED)
The tax assessed for the period is different than the standard rate of
corporation tax in the UK of 30% (31 March 2002: 30%). The differences are
explained as follows:
9 months Period from
ended incorporation to
31 December 31 March
2002 2002
# #
Loss on ordinary activities before tax (367,716) (52,953)
Loss on ordinary activities multiplied by standard rate of corporation (110,315) (15,886)
tax in the UK of 30% (31 March 2002: 30%).
Effect of:
Expenses not deductible for tax purposes 15,410 2,040
Difference between capital allowances and depreciation 160 242
Other timing differences - tax losses carried forward 92,961 12,125
Other 1,784 1,480
Current tax charge for period - -
Excess management expenses in the UK of #296,000 (31 March 2002: #40,000) remain
available to carry forward against future non-trading income of the company.
4. LOSS PER SHARE
The calculation of the loss per ordinary share is based on a loss of #367,234 to
31 December 2002 (loss of #52,953 to 31 March 2002) and the weighted average
number of ordinary shares outstanding of 8,660,814 at 31 December 2002
(4,100,710 at 31 March 2002). There is no difference between the diluted loss
per share and the loss per share presented.
5. INTANGIBLE FIXED ASSETS
Mining concessions
and capitalised
pre-operating costs
#
Cost
At 1 April 2002 213,590
Additions 144,442
At 31 December 2002 358,032
Amortisation
At 1 April 2002 -
Write down in the year (29,000)
At 31 December 2002 (29,000)
Net book amount at 31 December 2002 329,032
Net book amount at 31 March 2002 213,590
Intangible fixed assets consist of acquisition costs of rights on mining
concessions, exploration rights and exploration and development costs.
6. FIXED ASSET INVESTMENTS
The fixed asset investment of #614,768 (31 March 2002: #nil) represents the
Group's investment in the Rio Blanco Project, which has been acquired by the
Group since the year end.
7. SHARE CAPITAL
At 31 December 2002 At 31 March 2002
Number # Number #
Authorised
Ordinary shares of 10p (31 March 100,000,000 10,000,000 200,000,000 10,000,000
2002: 5p) each
Allotted, called up and fully paid
Ordinary shares of 10p (31 March 10,304,715 1,030,472 4,720,761 472,076
2002: 5p) each
Authorised share capital
On 24 May 2002 authorised ordinary shares were re-valued to 10p each (31 March
2002: 5p). The authorised number of ordinary shares were reduced by
100,000,000.
Consolidation and issue of share capital
On 24 May 2002, the Company's issued share capital was consolidated 2:1 into
4,720,761 ordinary shares of 10p each.
On 13 June 2002, the Company issued 28,399 fully paid ordinary shares of 10p
each at 54p per share.
On 21 June 2002, the Company listed on the Alternative Investment Market (AIM)
and issued 5,555,555 fully paid ordinary shares of 10p each at 54p per share, to
raise proceeds of #3,000,000 gross of expenses.
8. SHARE PREMIUM ACCOUNT AND RESERVES
Share Profit
premium and loss
account account
# #
At 1 April 2002 32,076 (62,210)
Retained loss for the year - (367,234)
Exchange loss on foreign currency net investments - (34,927)
Premium received on shares net of costs 2,012,607 -
At 31 December 2002 2,044,683 (464,371)
9. RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS
At 31 At 31
December March
2002 2002
# #
Loss for the financial period (367,234) (52,953)
Exchange loss on foreign currency net investments (34,927) (9,257)
New share capital subscribed 2,571,003 144,152
Shares issued for investment - 360,000
Net increase in shareholders' funds 2,168,842 441,942
Shareholders' funds at beginning of period 441,942 -
Shareholders' funds at end of period 2,610,784 441,942
10. NET CASH OUTFLOW FROM OPERATING ACTIVITIES
At 31 At 31
December March
2002 2002
# #
Operating loss (395,433) (53,000)
Depreciation 536 255
Write down of intangibles 29,000 -
(Increase)/decrease in debtors (54,036) 4,782
Increase in creditors 19,895 28,866
Foreign exchange losses (34,927) (9,257)
Net cash outflow from operating activities (434,965) (28,354)
11. RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS
At 31 At 31
December March
2002 2002
# #
Decrease/(increase) in cash in the period (16,387) 74,837
Cash inflow from increase in liquid resources 1,403,288 150
Change in net funds resulting from cash flows 1,386,901 74,987
Net funds at 1 April 2002 76,081 1,094
Net funds at 31 December 2002 1,462,982 76,081
12. ANALYSIS OF CHANGES IN NET FUNDS At 1 At 31
April December
2002 Cash flow 2002
# # #
Cash in hand and at bank 75,931 (16,387) 59,544
75,931 (16,387) 59,544
Short-term deposits 150 1,403,288 1,403,438
76,081 1,386,901 1,462,982
13. PUBLICATION OF NON-STATUTORY ACCOUNTS
The financial information set out in this preliminary announcement does not
constitute statutory accounts as defined in Section 240 of the Companies Act
1985.
The summarised balance sheet at 31 December 2002 and the summarised profit and
loss account, summarised cash flow statement and associated notes for the period
then ended have been extracted from the Group's 31 December 2002 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.
This information is provided by RNS
The company news service from the London Stock Exchange
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