Final Results
11 November 2008
Conroy Diamonds and Gold Plc
AIM: CDG
FINAL RESULTS FOR THE YEAR ENDED 31 MAY 2008
Conroy Diamonds and Gold Plc ("Conroy" or "the Company"), the gold exploration
and development company focused on Ireland and Finland, announces its final
results for the year ended 31 May 2008.
Highlights:
* One million ounce deposit confirmed in Ireland
* The JORC compliant resource lies within 20 per cent. of total target area
* Mineralisation open to depth
* Operating loss €374,874: in line with expectations
* Potential to increase resource in both Ireland and Finland
* Net assets €6,308,996
Richard Conroy, Chairman, commented:
"The 12 months ended 31 May 2008 has been a year of great achievement for your
Company. Our success in confirming a gold deposit of at least one million
ounces is, without doubt, an important milestone.
"The Company has expressed a firm belief that its exploration results point to
the possible presence of a new gold province in the acreage covered by its
licences in Ireland and the progress we have made in the past year has only
strengthened this belief.
"Whilst the Directors believe that the one million ounces should be regarded as
a minimum figure, it provides a basis upon which conceptual and pre-feasibility
studies can be initiated as part of the process leading to the development of a
gold mine in the Clontibret area."
Further enquiries:
Conroy Diamonds and Gold Plc Tel: 00 353 1 661 8958
Professor Richard Conroy
John East & Partners Limited Tel: 020 7628 2200
Jeffrey Coburn
City Capital Corporation Limited Tel: 020 7842 5867
Charles Dampney
Lothbury Financial Limited Tel: 020 7011 9411
Ron Marshman / Michael Padley
CHAIRMAN'S STATEMENT
I have pleasure in presenting your Company's Annual Report and Financial
Statements for the twelve months ended 31 May 2008, a year of great achievement
for your Company. Our success in confirming a gold deposit of at least 1
million ounces is, without doubt, an important milestone and one that I believe
is even more significant when placed in the context of an eventful period for
the world gold industry.
The definition of a one million ounce JORC-compliant gold resource in a
politically stable country with excellent infrastructure, a skilled workforce
and only 90 minutes by road from a capital city, is a significant achievement
for your Company.
Whilst the obvious highlight was the rise in the gold price to a record
US$1,011 an ounce in March 2008, (although it has subsequently retreated to the
current trading range of US$700-US$800 an ounce), there were a number of other
important developments. These included the decline in new mine production
during 2007, with South Africa losing its leading position to China, and a fall
off in several of the world's major gold producing areas such as the Eastern
Goldfields of Western Australia, the Carlin district of Nevada and the Red Lake
area of Ontario. This was accompanied by an increase in the costs associated
with operating mines.
These trends have continued in the first half of 2008, with GFMS, a leading
consultancy, indicating a 6 per cent. (70 tonnes) decline in global gold
production and a further 20 per cent. rise in costs. In addition, South Africa
is currently experiencing major power problems, that the Directors believe are
likely to impinge on the mining industry for several years to come,
particularly the deeper gold and platinum mines that require refrigeration.
Despite increased global exploration expenditure in recent years, one of the
fundamental reasons that worldwide production is declining is that the number
of major new discoveries in the past decade has reduced significantly. As a
consequence, major gold producers have, increasingly been consolidating, by way
of acquisition, in order to increase their reserve base and maintain annual
production rates. This, however, does not lead to any increase in the global
reserve base.
You will be aware that, for the past several years, your Company has expressed
a firm belief that its exploration results point to the possible presence of a
new gold province in the acreage covered by its licences in Ireland. The
progress we have made in the past year has only strengthened this belief.
Our main focus has been the ongoing assessment and evaluation of our Clontibret
gold target in Co Monaghan, culminating shortly after the financial year-end
with the announcement that the discovery has indicated and inferred resources
in excess of one million ounces of contained gold at relatively shallow depth.
Your directors believe this is the first gold resource of this magnitude
reported in Ireland or the UK.
The JORC-compliant mineral resource lies within only 20 per cent. of the total
Clontibret target area, and infill drilling of this area is expected to
increase both the size and grade of the resource. We are confident that
drilling in the remaining 80 per cent. of the target area will add at least as
much gold as we have already discovered at Clontibret. In addition, the
mineralisation remains open at depth.
Using a 0.75 gramme/tonne (g/t) cut-off, the Indicated Resource at Clontibret
now stands at 11 million tonnes at a grade of 1.24g/t for 440,000 ounces
contained. Total mineral resources within the 20 per cent. area, at the same
cut-off, amount to 25 million tonnes grading 1.28g/t for 1,030,000 ounces
contained.
Indicated Resource Tonnes (million tonnes) 11.0
Grade g/t @ 0.75g/t cut-off 1.24
Resource ounces gold contained 440,000
Inferred Resource Tonnes (million tonnes) 14.0
Grade g/t @ 0.75g/t cut-off 1.32
Resource ounces gold contained 590,000
Total 1,030,000
The definition of a one million ounce JORC-compliant gold resource, to an
average depth of less than 150metres, in a politically stable country, with a
mining tradition, excellent infrastructure, a skilled workforce and only 90
minutes by road from a capital city, is a significant achievement for your
Company.
Whilst the Directors believe that the one million ounces should be regarded as
a minimum figure, it provides a basis upon which conceptual and pre-feasibility
studies can be initiated as part of the process leading to the development of a
gold mine in the Clontibret area.
However, your Company has also identified several other substantial targets
within its Longford-Down Massif licence area, each of which has returned
initial sampling results that suggest they also have the potential to host gold
deposits of a magnitude similar to Clontibret.
Whilst the main focus of your Company's activities is development of Clontibret
and exploration/ delineation of other targets on its licences in Ireland, we
also continue active exploration in the Central Lapland Greenstone Belt of
Finland. This hosts several known gold deposits, including Agnico-Eagle's 2.5
million ounce Suurikuusikko deposit. Your Company's objective is to identify
economic gold deposits in Finland that will complement its Irish gold assets.
Financials
The loss after taxation for the year ended 31 May 2008 was €374,874 (2007 €
375,059) and the net assets as at 31 May 2008 were €6,308,996 (2007 €
6,520,516). Cash at bank as at 31 May 2008 was €109,432 (2007 €105,954). As we
move towards delineation and development your directors are considering how
best to fund your Company's activities. Options being studied include joint
venture and farm-out, as well as such other arrangements as may be appropriate
for advancing the interests of your Company.
As in previous years, I have supported the working capital requirements of the
Company. During the period under review I have advanced aggregate loans €
734,780. These have been made in accordance with a letter of support which has
been renewed on 11 November 2008. The loans have been made on normal commercial
terms.
The other directors consider, having consulted with the Company's Nominated
Advisers, that the terms of the loans are fair and reasonable in so far as the
Company's shareholders are concerned.
Auditors
I would like to take the opportunity of thanking the partners and staff of
Deloitte & Touche for their services to your Company during the course of the
year.
Directors, Consultants and Staff
I would also like to express my deep appreciation of the support and dedication
of the directors, consultants and staff, which has made possible the continued
progress and success which your Company has achieved.
Future Outlook
Your Company's exploration strategy has been highly effective in leading to the
delineation of 1 million ounces of gold at Clontibret and to the discovery of
other possible gold targets of similar magnitude in the region. We look forward
with confidence to further success.
Professor Richard Conroy
Chairman
INCOME STATEMENT
FOR THE YEAR ENDED 31 MAY 2008
2008 2007
€ €
OPERATING EXPENSES (374,890) (376,320)
Other Income 16 1,261
LOSS BEFORE TAX (374,874) (375,059)
Taxation - -
LOSS RETAINED FOR THE YEAR (374,874) (375,059)
Loss per ordinary share - Basic and diluted (€0.0035) (€0.0038)
BALANCE SHEET
AS AT 31 MAY 2008
2008 2007
€ €
ASSETS
Non-current Assets
Intangible assets 7,830,219 7,136,877
Financial assets 2 2
Property, plant and equipment 29,934 32,104
7,860,155 7,168,983
Current Assets
Trade and other receivables 36,229 37,707
Cash and cash equivalents 109,432 105,954
145,661 143,661
Total Assets 8,005,816 7,312,644
EQUITY AND LIAIBILITIES
Capital and Reserves
Called up and share capital 3,170,649 3,170,649
Share premium 5,491,037 5,491,037
Capital conversion reserve fund 30,617 30,617
Share based payments reserve 284,604 121,250
Retained losses (2,667,911) (2,293,037)
Total Equity 6,308,996 6,520,516
Non-current Liabilities
Trade and other payables: Amounts falling due 1,421,948 687,168
after more than one year
Total non-current liabilities 1,421,948 687,168
Current Liabilities
Trade and other payables: Amounts falling due 274,872 104,960
within one year
Total Current Liabilities 274,872 104,960
Total Liabilities 1,696,820 792,128
Total Equity and Liabilities 8,005,816 7,312,644
Cash Flow Statement
For the Year Ended 31 May 2008
2008 2007
€ €
Cash used by operations (159,261) (264,493)
Tax paid - -
Net cash used in operating activities (159,261) (264,493)
Cash flows from investing activities
Investment in mineral interest (561,640) (1,520,934)
investment in subsidiary - (2)
Payments to acquire property, plant and (10,401) -
equipment
Net cash used in investing activities (572,041) (1,520,936)
Cash flows from financing activities
Issue of share capital - 1,000,000
Shareholders loan advances 734,780 578,986
Net cash from financing activities 734,780 1,578,986
Increase/(decrease) in cash and cash 3,478 (206,443)
equivalents
Cash and cash equivalents at beginning of year 105,954 312,397
Cash and cash equivalents at end of year 109,432 105,954
Notes to the Financial Statements
1. Publication of non-statutory accounts
The financial information set out in this preliminary announcement are
abbreviated accounts as defined in Section 19 of the Companies (Amendment) Act
1986.
The financial information for the period ended 31 May 2008 have been extracted
from the Company's financial statements to that date which have received an
unqualified auditors' report but have not yet been delivered to the Registrar
of Companies.
2. Earnings per share
The calculation of the loss per ordinary share of €0.0035 (2007 - €0.0038) is
based on the loss for the financial year of €374,874 (2007 - €375,059) and the
weighted average number of ordinary shares in issue during the year of
105,688,297 (2007 - 97,643,184).
Since the Company incurred a loss the effect of share options and warrants
would be anti-dilutive.
3. Dividends
No dividends were paid or are proposed in respect of the period ended 31 May,
2008.
4. Copy of Accounts
A copy of the Annual Report and Financial Statements will be available on the
Company's website www.conroydiamondsandgold.com and will be available from the
Company's registered office, 10 Upper Pembroke Street, Dublin 2. It will also
be forwarded to shareholders who requested a hard copy.
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