Final Results

RNS Number : 0629G

Alba Mineral Resources PLC

06 May 2011

 



6 May 2011

Alba Mineral Resources Plc

Final results for the year ended 30 November 2010

CHAIRMAN'S STATEMENT

The Board of Alba Mineral Resources plc (the "Company" or "Alba", and collectively with its Subsidiary Companies, the "Group") is pleased to report the results for the year ended 30 November 2010. They incorporate the results of its subsidiary companies, Aurum Mineral Resources Limited ("AMR"), Mauritania Ventures Limited ("MVL") and Alba Mineral Resources Sweden AB ("Alba Sweden") (collectively the "Subsidiary Companies").

INTRODUCTION

Alba is a committed, technically driven explorer with a commodity focus on uranium, nickel and gold. Alba currently has a number of well researched wholly owned properties and joint venture interests.

The Company's overall corporate and exploration strategy will continue to be one of developing a portfolio of well-researched, promising and prospective exploration properties that will be pursued further, either in the Company's own right or in conjunction with other parties.  To create and realise value, projects may be disposed of (in whole or part), spun off into a separate company, joint ventured to include a cash consideration and/or maintaining a 'Net Smelter Return' or developed into operating mines.

RESULTS AND DIVIDENDS

The loss for the period, after taxation, attributable to equity holders amounted to £282,186 (2009: £192,367 loss).

The directors do not recommend the payment of a dividend (2009: £nil).

REVIEW OF ACTIVITIES

Our activities in the year have been primarily focused on securing additional funding for the Group. As announced on 22 December 2009, the Company secured funding to a total of £100,000 from directors and other related parties.

On 31 August 2010, the Company announced in its interim statement that it had completed the drilling of a 178 m deep diamond drill hole at its Limerick Licence in Ireland.   The assay results from this hole were encouraging and we continue to seek a JV partner for this licence in what is a very prospective area. The licence covering this ground has been renewed until 27 May 2016.

Also in Ireland, the Company held exploration licences in Bohaun, Co. Galway. However, based on a review of the Company's portfolio and our ability to fund further exploration with a view to developing a commercially viable mining operation, these licences have now been surrendered.

In Scotland, the Company continues to believe that the Arthrath  Ni-Cu-PGE  project near Aberdeen has significant potential as a sulphide nickel target.  On 4 November 2010, we reported that this project was previously held under private mineral right agreements with local landowners.  The landowners in 2009 agreed a moratorium on the payment of licence fees until the company was able to raise additional finance and whilst this moratorium expired in October 2010 we are looking to negotiate extensions.  This project continues to be a poorly explored magmatic Ni-Cu-PGE exploration target and we continue to seek joint venture partners to assist in carrying this project forward.

On 4 November 2010, we reported on the position regarding our 50% owned subsidiary Mauritania Ventures Ltd. (MVL). MVL held one uranium exploration permit No 422 in the north of Mauritania and on 30 April 2010 MVL paid the prescribed annual permit fee to the Mauritanian Mining Authorities.  On 3 November 2010, we were advised that the permit had been withdrawn.  The company has been in discussions with a third party and now believes that MVL can recover this permit. If this proves to be the case we will be raising additional funds to commence exploration activities on this permit area as soon as possible, which we believe to be very prospective based on previous prospecting results from this area.

OUTLOOK

As a result of the time and cost involved in maintaining the Company's licences and exploration activities, the Company's working capital position has been adversely affected.  In these circumstances our ability to finance exploration activities has been severely restricted and the Company continues to manage cash tightly.

We have relinquished all of the Swedish licences we hold and plan to focus our exploration efforts on uranium exploration in Mauritania and base metal exploration in Ireland and Scotland within the constraints of the financial resources available to the Company. The Company continues to look to raise additional funds in the near future to enable it to continue to advance the development of its project portfolio. In the meantime, the Company has secured short-term credit facilities to enable it to meet its immediate requirements.

During this accounting period being reported on, no directors' fees have been drawn. All available funds have been spent to preserve our assets and maintain our listing. The Company still has unused credit facilities available to it to meet ongoing costs.

Michael Nott

Chairman and Managing Director

6 May 2011

Enquiries:

Alba Mineral Resources Plc		020 7495 5326
Michael Nott
Northern Capital Partners Limited (Nominated Adviser)		020 7796 8800
Luke Cairns/Rod Venables

GROUP INCOME STATEMENT

FOR THE YEAR ENDED 30 NOVEMBER 2010

			2010	2009
			£	£
Revenue			-	-
Cost of sales			-	-
Gross loss			-	-
Other administrative expenses			(163,724)	(191,498)
Impairment of deferred exploration expenditure			(118,680)	(3,229)
Administrative expenses			(282,404)	(194,727)
Operating loss and loss before tax			(282,404)	(194,727)
Taxation			-	-
Loss for the year			(282,404)	(194,727)
Attributable to:
Equity holders of the parent			(282,186)	(192,367)
Minority interests			(218)	(2,360)
			(282,404)	(194,727)
Loss per ordinary share
	Basic and diluted		0.26 pence	0.19 pence

GROUP STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 30 NOVEMBER 2010

			2010	2009
			£	£
Loss after tax			(282,404)	(194,727)
Foreign exchange movements			(2,477)	-
Total comprehensive loss			(284,881)	(194,727)
Total comprehensive loss attributable to:
Equity holders of the parent			(284,663)	(192,367)
Minority interests			(218)	(2,360)
			(284,881)	(194,727)

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

30 NOVEMBER 2010

			2010	2009
			£	£
Non-current assets
Intangible fixed assets			566,484	619,992
Property, plant and equipment			-	-
Total non-current assets			566,484	619,992
Current assets
Trade and other receivables			68,608	16,952
Cash and cash equivalents			10,607	14,831
Total current assets			79,215	31,783
Current liabilities
Trade and other payables			521,941	349,940
Financial liabilities			318,834	212,030
Total current liabilities			840,775	561,970
(Net liabilities)/net assets			(195,076)	89,805
Capital and reserves
Called up share capital			947,951	947,951
Share premium account			977,401	977,401
Retained losses			(2,491,298)	(2,209,112)
Merger reserve			200,000	200,000
Foreign currency reserve			142,430	144,907
Equity attributable to equity holders of the parent			(223,516)	61,147
Minority interest			28,440	28,658
Total equity			(195,076)	89,805

CONSOLIDATED CASH FLOW STATEMENT

FOR THE YEAR ENDED 30 NOVEMBER 2010

			2010	2009
			£	£
Cash flows from operating activities
Operating loss			(282,404)	(194,727)
Depreciation			-	3,166
Impairment of deferred exploration expenditure			118,680	3,229
Foreign exchange revaluation adjustment			(2,477)	-
Increase in creditors			172,001	117,127
Increase in debtors			(51,656)	(11,674)
Net cash used in operating activities			(45,856)	(82,879)
Cash flows from investing activities
Payments to acquire property, plant and equipment			-	-
Payments for deferred exploration expenditure			(65,172)	(59,340)
Interest received			-	-
Net cash used in investing activities			(65,172)	(59,340)
Cash flows from financing activities
Proceeds from borrowings			106,804	22,000
Proceeds from issue of share capital			-	86,251
Net cash generated from financing activities			106,804	108,251
Net decrease in cash and cash equivalents			(4,224)	(33,968)
Cash and cash equivalents at beginning of period			14,831	48,799
Cash and cash equivalents at end of period			10,607	14,831

NOTES

1.             Basis of preparation

The financial information set out in this announcement does not comprise the Group's statutory accounts for the year ended 30 November 2010. The financial information has been extracted from the statutory accounts of the Company for the year ended 30 November 2010. The auditors reported on those accounts; their report was unqualified and did not contain a statement under either Section 498 (2) or Section 498 (3) of the Companies Act 2006. The auditor's report did include an emphasis of matter relating to the uncertainty as to whether the Group can raise sufficient funds to continue to develop the Group's exploration assets.

2.             Continuation of exploration activities

To continue to develop the Group's exploration assets and support the Company's value of the investment in subsidiaries supported by those assets the Group is dependent on securing further funds to continue exploration activities. With respect to those assets, the following is a summary of certain significant matters:

·      Whilst the licence for exploration assets with a carrying value of £520,612 has been withdrawn, the Board is confident that this licence will be reissued to the Group. The Group will require further funds to develop this asset. 

·      A licence held for exploration assets with a carrying value of €55,056 is due for renewal on 27 May 2016.

·      The Company's investment in subsidiaries is £1,535,748, the value of which is dependent upon raising further finance to develop their assets.

Under current market conditions the Directors believe that there is a material uncertainty, which may cast significant doubt upon the ability of the Company to raise sufficient funds to continue to develop the Group's exploration assets.

If it is not possible to raise sufficient funds, the carrying value of the exploration assets of the Group and the investment of the Company in its subsidiaries are likely to be impaired.

3.             Taxation

No charge for corporation tax for the period has been made due to the expected tax losses available.

4.             Loss per share

Basic loss per share is calculated by dividing the loss attributed to ordinary shareholders of £282,186 (2009: £192,367) by the weighted average number of shares of 110,320,416 (2009: 99,214,048) in issue during the year. The diluted loss per share calculation is identical to that used for basic loss per share as the exercise of warrants would have the effect of reducing the loss per ordinary share and is therefore not dilutive under the terms of IAS 33 "Earnings per Share".

5.             Report and Accounts

The statutory accounts for the year ended 30 November 2010 will be sent today to shareholders of the Company and will be delivered to the Registrar of Companies following the Company's Annual General Meeting, which will be held on 31 May 2011. The report and accounts will also be available on the Company's web site: www.albaminersalresources.com.

 

END

 

 

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