RNS Number:3989E
Falkland Gold and Minerals Ltd
13 June 2006
FALKLAND GOLD AND MINERALS LIMITED
Interim Results for the 6 months ended 31 March 2006
13 June 2006
Highlights
* Over 14,000 metres drilled up to end of May 2006;
* British Geological Survey review conducted;
* Cash balances of over #6.6 million;
* Free of debt.
I am pleased to report on the activities of Falkland Gold and Minerals Ltd ("
FGML" or "the Company") for the six month period to 31 March 2006.
During the period the Company returned a loss before tax of #490,517 (6 months
to 31 March 2005: #345,869). A further #158,104 has been invested in tangible
fixed assets this period, most of which was spent on operating plant and
machinery. Current monthly cash expenditure is approximately #170,000.
The Company is now well into the second year of its exploration programme in the
Falklands. This programme has been designed to establish the source of alluvial
gold discovered in some of the streams in the Islands and the operations are
going well with over 14,000 metres of core having been drilled over ten targets
as at the end of May 2006.
3,900 metres of drilling is planned on four other targets that are drill ready
and an additional 4,000 metres of drilling is planned on three further targets
where we have yet to use ground sampling techniques to assist in focusing the
drill targeting.
In addition to the investigative drilling campaign, we will be undertaking a
peat soil geochemical sampling programme on two additional areas. This work is
specifically aimed at developing new drill targets and should generate around
10,000 samples for analysis. Taken together, the drilling and sampling work
programme is likely to take us well into 2007 and this can be financed from
existing resources.
The British Geological Survey completed a review of the exploration work carried
out up to the end of March 2006 and also of the methodologies employed. They
made several constructive suggestions on the way forward and commented
positively on the implementation of the exploration programme. Their services
are being retained in order to provide additional interpretative capacity.
Your Board continues to believe that the potential outlined in the prospectus
issued in November 2004 remains and that the continuing work programme should
identify the geological model accounting for the various anomalies. We remain
hopeful that this will lead on to some discoveries of economic value.
Richard Linnell - Chairman
Enquiries:
Falkland Gold and Minerals Limited
Richard Linnell (Chairman) +27 82 440 6710
FALKLAND GOLD AND MINERALS LIMITED
Profit and loss account for the 6 months period ended 31 March 2006
6 months 6 months
Period ended Period ended Year ended
31/03/06 31/03/05 30/09/05
(unaudited) (unaudited) (audited)
Note # # #
Administrative expenses (648,357) (457,705) (1,108,203)
Operating loss (648,357) (457,705) (1,108,203)
Interest receivable 157,840 111,836 324,843
Interest payable - - (2,133)
Loss on ordinary activities before (490,517) (345,869) (785,493)
taxation
Tax on loss on ordinary activities 2 (107,759) - -
Loss for the financial period after (598,276) (345,869) (785,493)
taxation
Retained loss for the period (598,276) (345,869) (785,493)
6 months 6 months
Period ended Period ended Year ended
31/03/06 31/03/05 30/09/05
(unaudited) (unaudited) (audited)
Pence Pence Pence
Basic and diluted loss per ordinary 3 (0.76) (0.52) (1.09)
share
There were no recognised gains or losses in the year other than those dealt with
in the profit and loss account above.
All of the activities of the Company are classified as continuing.
Balance sheet as at 31 March 2006
6 months 6 months
Period ended Period ended Year ended
31/03/06 31/03/05 30/09/05
(unaudited) (unaudited) (audited)
# # #
Fixed assets
Intangible assets 1,573,365 941,367 1,158,218
Tangible assets 560,579 483,893 537,938
2,133,944 1,425,260 1,696,156
Current assets
Debtors 116,616 87,652 61,001
Cash at bank and in hand 6,659,013 8,451,447 7,659,993
6,775,629 8,539,099 7,720,994
Creditors: amounts falling due within one (182,341) (186,425) (91,642)
year
Net current assets 6,593,288 8,352,674 7,629,352
8,727,232 9,777,934 9,325,508
Capital and reserves
Called up share capital 1,565 1,565 1,565
Share premium account 10,209,182 10,221,984 10,209,182
Profit and loss account (1,483,515) (445,615) (885,239)
8,727,232 9,777,934 9,325,508
Reconciliation of movements in shareholders' funds for the 6 months ended 31
March 2006
Loss for the financial period (598,276) (345,869) (785,493)
New share capital subscribed (net of issue costs) - 9,313,495 9,300,693
Net (decrease)/increase to shareholders' funds (598,276) 8,967,626 8,515,200
Opening shareholders' equity funds 9,325,508 810,308 810,308
Closing shareholders' equity funds 8,727,232 9,777,934 9,325,508
Cash flow statement for the 6 months period ended 31 March 2006
6 months 6 months
Period ended Period ended Year ended
31/03/06 31/03/05 30/09/05
(unaudited) (unaudited) (audited)
Note # # #
Net cash outflow from operating activities 5 (546,353) (418,291) (869,413)
Returns on investments and
servicing of finance 157,840 111,836 324,843
Capital expenditure (612,467) (731,726) (1,221,013)
Net cash outflow before financing (1,000,980) (1,038,181) (1,765,583)
Financing - 9,313,495 9,249,443
(Decrease)/increase in cash in period (1,000,980) 8,275,314 7,483,860
Notes to the interim accounts for the 6 months period ended 31 March 2006
1. Basis of preparation of the financial statement
The interim financial information set out above has been prepared on the same
basis and using the same accounting policies as were applied in drawing up the
company's statutory financial statements for the year ended 30 September 2005.
The financial information for the 6 month periods ended 31 March 2006 and 31
March 2005 are unaudited.
In the opinion of the directors the financial information for the periods fairly
represents the financial position, results of the operations and cash flows for
the period in compliance with Falkland Island Company Law and generally accepted
accounting principles.
The financial information for the full year ended 30 September 2005 is extracted
from the Company's audited financial statements for that year as filed with the
Registrar of companies. The auditors' report on those accounts was unqualified.
2. Taxation
Analysis of the tax charge
The tax charge on the loss on ordinary activities for the period was as follows:
6 months 6 months
Period ended Period ended Year ended
31/03/06 31/03/05 30/09/05
(unaudited) (unaudited) (audited)
# # #
Current tax:
UK corporation tax on profits of the period 30,417 - -
Adjustments in respect of previous periods 77,342 - -
Tax on loss on ordinary activities 107,759 - -
UK corporation tax has been charged at 30%
Factors affecting the tax charge
The tax assessed for the period is higher than the standard rate of corporation
tax in the UK. The difference is explained below:
6 months 6 months
Period ended Period ended Year ended
31/03/06 31/03/05 30/09/05
(unaudited) (unaudited) (audited)
# # #
Loss on ordinary activities before tax (490,517) (345,869) (785,493)
Loss on ordinary activities multiplied by the
standard rate of corporation tax in the UK of
30% (147,155) (103,761) (235,648)
Effects of:
Tax losses unavailable for current relief 107,579 100,905 157,940
Depreciation and amortisation in excess of
capital allowances
52,404 2,856 67,808
Expenses not deductible for tax purposes 1,250 - 9,900
Differences in tax rates 16,339 - -
Adjustments in respect of previous periods 77,342 - -
Current tax charge 107,759 - -
3. Loss per share
The calculation of the basic loss per ordinary share is based on the losses of
#598,276 (6 months to 31 March 2005: #345,869) and the weighted average number
of ordinary shares outstanding of 78,250,000 (6 months to 31 March 2005:
66,171,429). There is no difference between the basic loss per share and the
diluted loss per share presented.
4. Dividends
The Directors do not recommend the payment of a dividend.
5. Reconciliation of operating loss to net cash outflow from operating
activities
6 months 6 months
Period ended Period ended Year ended
31/03/06 31/03/05 30/09/05
(unaudited) (unaudited) (audited)
# # #
Operating loss (648,357) (457,705) (1,108,203)
Amortisation and depreciation charges 174,679 9,520 225,778
Increase in debtors (55,615) (82,237) (55,586)
(Decrease)/Increase in creditors (17,060) 112,131 68,598
Net cash outflow from operating activities (546,353) (418,291) (869,413)
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR IIFSTRSIFLIR
Falkland Gold (LSE:FGML)
Historical Stock Chart
From Jul 2024 to Aug 2024
Falkland Gold (LSE:FGML)
Historical Stock Chart
From Aug 2023 to Aug 2024