Final Results
29 October 2003 - 9:31PM
UK Regulatory
RNS Number:4277R
Minco PLC
29 October 2003
MINCO PLC
29th October 2003
NEWS RELEASE
Highlights of the Chairman's statement accompanying the Annual Report and
Accounts.
* The acquisition of Orca Gold and the Irish interests of Ennex have
transformed Minco into a focused gold and silver explorer.
* The management of the company has been transformed by three executive
directors joining the board. They will run the company.
* Exploration has commenced on the Irish gold licences in Wicklow and
Kildare.
* Minco holds 22 concessions on historical silver producers in Zacatecas,
Mexico. A drilling and prospecting programme is being mobilised.
* Negotiations are underway to finalise permitting of 55Million Ounce silver
tailings project in Laguna Zacatecana.
* A drilling programme will be undertaken in 2004 on the world-class zinc
properties in Limerick, Ireland. This is joint venture with Noranda.
* Gold opportunities in Central Asia, where the new management team has
contacts and experience, are being evaluated.
Contacts:
Matthew Dorman Tel: +34 (0) 687 494550
Roger Turner Tel: +44 (0) 1273 495 500
John Teeling Tel: +353 (1) 833 2833
Chairman's Statement
This is an exciting time for Minco shareholders. The recent acquisition of Orca
Gold and the expansion of our gold and zinc interests in Ireland, gives Minco
significant exploration opportunities in precious metals. This, at a time, when
many believe that the price cycle for gold, silver and zinc has turned upward.
We now have high potential silver licenses in Mexico, excellent gold properties
in Ireland and we are examining additional gold opportunities in Central Asia
and Mexico.
During the year we purchased the Irish gold and zinc interests of Ennex
International. This gave us a 2% royalty in the Curraghinalt gold property in
Northern Ireland as well as increasing to 100% our interest in four zinc
licences in the Irish midlands.
While our focus in on precious metals, let me not forget our superb portfolio of
zinc exploration properties. We have 33 top class zinc exploration licences in
Ireland, including the highly prospective Pallas Green licence block, which we
are exploring in joint venture with Noranda. During the year under review, we
drilled a number of holes, all containing zinc mineralization. The historically
low zinc price devastated exploration budgets and it was believed that Noranda
was exiting exploration in Ireland. I am delighted to report that, following
negotiations between Minco and Noranda, we will drill in 2004.
The increased level of activity requires more management. I am delighted to
report that three highly experienced managers have become executive directors.
Roger Turner, the Deputy Chairman, is a well known and widely experienced gold
explorer. He was a founder director of Nelson Gold and of the current stock
exchange favourite, Oxus Gold. He brings unrivalled expertise in Central Asia.
Matthew Dorman, who is Minco Chief Operating Officer, is an experienced
metallurgist who has worked in precious metals in Central America and
Uzbekistan. Roger and Matthew founded Orca Gold. Richard Thornton, who is now
Finance Director of Minco, is a Chartered Accountant with many years experience
in U.K. industry.
Forthcoming Activity
The coming year will see us working on five fronts:
1. We are already prospecting on our Irish gold licences in Avoca, Co. Wicklow
and Tipperkevin, Co. Kildare. This programme involves geophysical,
geochemical and drilling elements.
2. The Laguna silver tailings project in Zacatecas, Mexico contains up to 24
million ounces of recoverable silver. We will finalise negotiations with the
Mexican authorities and with local landowners. An existing bankable
feasibility study will be updated.
3. Zacatecas province in Mexico has been the centre of silver production for
hundreds of years. Mexico is the world's biggest silver producer. We hold 21
silver concessions in Zacatecas. We are currently prioritizing an
exploration programme for 2004. Most of the concessions are former
producers. Any explorer will tell you, the best place to find a mine is
where there was a mine.
4. A team has been recruited in Central Asia to examine potential gold
opportunities.
5. As outlined earlier, Minco and Noranda will continue drilling Pallas Green in
Ireland in 2004. This 25 km. long strike zone has all of the indicators
necessary for a large zinc deposit. We need to drill more holes.
Prospects for Precious Metals
Many of us believe that the long bear market in gold and silver is over.
The gold price of $370 an oz looks set to rise further. And so it should. After
a 20 year decline, the price curve is showing strong signs of a sustained rise.
The deficit in new gold production compared to demand has been well known for
years but is finally affecting price. Closure of hedging positions and more
certainty in relation to central bank sales is giving confidence to investors.
If gold is looking good then silver is looking spectacular. Silver at $5.00 an
oz or less is too cheap. For 4000 years there was a 40 to 1 gold to silver
price relationship. That implies a current silver price of $8.50 an oz of silver
which makes economic sense. The demonetization of silver and the position of
silver production as a byproduct of base metal output has shattered the price
relationship. However, silver fundamentals look stronger now than they have in
decades. Demand is rising while supply is falling. There are few pure silver
mines in the world. Mexico is the world's largest silver producer. The Minco/
Orca concessions are in the center of the Zacatecas silver province and all have
a history of silver production.
Funding
We have adequate funds for the exploration activities outlined above. Success
will require further investment but funding success is never a problem.
Future
The new Minco is poised for action. We have the people, the projects and the
money. The world economy is improving, demand for metals is rising, commodity
and precious metals prices are rising. After a long period in the shade, our
time in the sun may have arrived.
CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 APRIL 2003
2003 2002
Euro Euro
ADMINISTRATIVE EXPENSES (117,445) (113,590)
OPERATING LOSS (117,445) (113,590)
Interest income 2,264 6,842
LOSS BEFORE TAXATION (115,181) (106,748)
Taxation - -
LOSS FOR THE YEAR AFTER TAXATION (115,181) (106,748)
Opening balance - profit and loss account (4,306,955) (4,200,207)
Closing balance - profit and loss account (4,422,136) (4,306,955)
Loss per share (0.33c) (0.30c)
Loss per share - diluted (0.33c) (0.30c)
There were no recognized gains or losses other than those included in the profit and loss account.
Results derive solely from continuing activities.
CONSOLIDATED BALANCE SHEET
AS AT 30 APRIL 2003
2003 2002
Euro Euro
FIXED ASSETS
Intangible assets 3,017,618 2,844,512
CURRENT ASSETS
Bank 22,925 182,511
Debtors 18,166 2,543
41,091 185,054
CREDITORS: (Amounts falling due within one year) (340,916) (196,592)
NET CURRENT LIABILITIES (299,825) (11,538)
NET ASSETS 2,717,793 2,832,974
CAPITAL RESERVES
Called-up share capital 2,815,430 2,815,430
Share premium account 4,280,042 4,280,042
Profit and loss account - (deficit) (4,422,136) (4,306,955)
Capital conversion reserve fund 44,457 44,457
SHAREHOLDERS' FUNDS 2,717,793 2,832,974
EQUITY 305,291 420,472
NON EQUITY 2,412,502 2,412,502
2,717,793 2,832,974
CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 30 APRIL 2003
2003 2002
Euro Euro
NET CASH OUTFLOW FROM OPERATING ACTIVITES (77,070) (120,309)
RETURNS ON INVESTMENTS AND SERVICING OF FINANCE
Interest received 2,264 6,842
NET CASH INFLOW FROM RETURNS ON INVESTMENTS AND SERVICING OF
FINANCE 2,264 6,842
CAPITAL EXPENDITURE AND FINANCIAL INVESTMENT
Payments in respect of intangible fixed assets (84,780) (13,030)
NET CASH OUTFLOW FROM CAPITAL EXPENDITURE AND FINANCIAL (84,780) (13,030)
INVESTMENT
NET CASH OUTFLOW BEFORE USE OF LIQUID RESOURCES AND FINANCING (159,586) (126,497)
FINANCING
Cost of issue of ordinary share capital - (7,162)
NET CASH OUTFLOW FROM FINANCING - (7,162)
DECREASE IN CASH (159,586) (133,659)
This information is provided by RNS
The company news service from the London Stock Exchange
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