Half Yearly Report

RNS Number : 1507Y

Alba Mineral Resources PLC

28 August 2009

 



ALBA MINERAL RESOURCES PLC

HALF-YEARLY UNAUDITED RESULTS

FOR THE SIX MONTHS ENDED 31 MAY 2009

CHAIRMAN'S STATEMENT

Introduction

Alba Mineral Resources plc ('Alba' or the 'Company' and collectively with its subsidiary companies 'the Group') holds a diverse portfolio of mineral properties in Mauritania (uranium), Scotland (nickel-copper), Ireland (gold and base-metals) and Sweden (nickel-copper). The projects are at different stages of development and range from early exploration targets to more advanced drill-ready projects.

Results for the Period

The Group made a loss attributable to equity holders of the parent for the period, after taxation, of £95,557. The basic and diluted loss per share was 0.1 pence. The Group had cash balances of £19,640 at the period end. The Company has reduced its monthly cash burn rate to below £4,000 excluding licence fees and exploration costs. Notwithstanding, the Board anticipates that a further fundraising will need to be completed before the end of 2009.

Review of Activities

Our activities in the first half of the year have been primarily focused on securing additional funding for the Group. As announced on 3 August 2009, the Company allotted 9,300,000 new ordinary shares of 0.1p each ('New Ordinary Shares') (representing approximately 10.0 per cent. of the current issued share capital of the Company) at a price of 0.5p per share (the 'Placing Price'), to directors and certain existing shareholders raising £46,500 (before expenses) pursuant to a placing and allotted a further 7,950,316 New Ordinary Shares (representing approximately 8.5 per cent. of the current issued share capital of the Company) at the Placing Price to discharge certain unpaid directors' remuneration and expenses and debt due to third parties in the amount of £39,751.58. 

Share Capital Reorganisation

On 7 January 2009, the Company undertook a Share Capital Reorganisation to affect an issue of new ordinary shares. Each issued and unissued existing ordinary share of 1p was subdivided and converted into 1 new ordinary share of 0.1p each and 1 Deferred Share of 0.9p. Following the Share Capital Reorganisation, each shareholder had the same number of new ordinary shares as existing ordinary shares held immediately before the Share Capital Reorganisation. The Company's authorised share capital remained the same and the Company's articles were amended to incorporate the provisions relating to the deferred shares.

Outlook

At the time of writing, it seems inevitable that there will be minimal exploration work undertaken by the Company during 2009. The Company's working capital position continues to be adversely affected, and the Company is still seeking to raise further funds in the near term. The Company continues to work with joint venture partners where possible and as the need for funds is ongoing, its costs and financial position are under constant review. Our exploration programmes can only be financed within our financial constraints.  

The Board believes that if the Company can overcome its immediate funding requirements it will be better placed to grow both organically and by acquisition.

Mike Nott

27 August 2009

Chairman

UNAUDITED CONSOLIDATED INCOME STATEMENT

FOR THE SIX MONTHS ENDED 31 MAY 2009

				Unaudited	Unaudited	Audited
				6 months ended	6 months ended	Year ended
				31 May 2009	31 May 2008	30 Nov 2008
				£	£	£
Revenue				-	-	-
Cost of sales				-	-	-
Gross profit				-	-	-
Administrative expenses				(96,487)	(160,249)	(1,027,766)
Operating loss				(96,487)	(160,249)	(1,027,766)
Investment revenue				-	909	909
Loss before taxation				(96,487)	(159,340)	(1,026,857)
Taxation (note 3)				-	-	-
Loss for the period				(96,487)	(159,340)	(1,026,857)
Attributable to:
Equity holders of the parent				(95,557)	(156,711)	(1,020,523)
Minority interest				(930)	(2,629)	(6,334)
Loss for the period				(96,487)	(159,340)	(1,026,857)
Loss per ordinary 1p share (note 3)
- basic and diluted				0.10 pence	0.18 pence	1.10 pence

  UNAUDITED CONSOLIDATED BALANCE SHEET

AS AT 31 MAY 2009

				Unaudited	Unaudited	Audited
				31 May 2009	31 May 2008	30 Nov 2008
				£	£	£
Non-current assets
Intangible assets - deferred exploration costs				600,358	1,049,895	563,881
Intangible assets - goodwill				-	67,614	-
Property, plant and equipment				1,223	4,959	3,166
				601,581	1,122,468	567,047
Current assets
Trade and other receivables				87,769	99,317	5,278
Cash and cash equivalents				19,640	86,203	48,799
				107,409	185,520	54,077
Total assets				708,990	1,307,988	621,124
Current liabilities
Trade and other payables				(399,166)	(285,576)	(232,813)
Borrowings				(208,030)	(152,030)	(190,030)
Total liabilities				(607,196)	(437,606)	(422,843)
Net assets				101,794	870,382	198,281
Equity and liabilities
Share capital				930,701	880,701	930,701
Share premium account				908,400	908,400	908,400
Merger reserve				200,000	200,000	200,000
Other reserve				144,907	(509)	144,907
Profit and loss account				(2,112,302)	(1,152,933)	(2,016,745)
Equity attributable to equity holders of the parent				71,706	835,659	167,263
Minority interest				30,088	34,723	31,018
Total equity and liabilities				101,794	870,382	198,281

  UNAUDITED CONSOLIDATED CASH FLOW STATEMENT

FOR THE SIX MONTHS ENDED 31 MAY 2009

				Unaudited	Unaudited	Audited
				6 months ended	6 months ended	Year ended
				31 May 2009	31 May 2008	30 Nov 2008
				£	£	£
Net cash used in operating activities				(10,682)	(91,178)	(164,895)
Investing activities
Interest received				-	909	909
Purchase of intangible assets				(36,477)	(239,237)	(290,536)
Purchase of property, plant and equipment				-	-	(388)
Net cash used in investing activities				(36,477)	(238,328)	(290,015)
Financing activities
Proceeds from issue of share capital				-	-	50,000
Proceeds from borrowings				18,000	92,025	130,025
Net cash generated from financing activities				18,000	92,025	180,025
Net decrease in cash and cash equivalents				(29,159)	(237,481)	(274,885)
Cash and cash equivalents at the beginning of the period				48,799	323,684	323,684
Cash and cash equivalents at the end of the period				19,640	86,203	48,799
Operating loss				(96,487)	(160,249)	(1,027,766)
Depreciation and amortisation				1,943	20,715	4,747
Impairment of deferred exploration expenditure				-	-	769,059
Foreign exchange revaluation adjustment				-	-	(567)
(Increase)/decrease in trade and other receivables				(82,491)	1,375	95,414
Increase/(decrease) in trade and other payables				166,353	46,981	(5,782)
Net cash used in operating activities				(10,682)	(91,178)	(164,895)

NOTES TO THE HALF-YEARLY FINANCIAL INFORMATION

1.    Basis of preparation

The Group consolidates the financial statements of the Company and its subsidiary undertakings.

The financial information has been prepared under the historical cost convention in accordance with International Financial Reporting Standards (IFRSs). The same accounting policies, presentation and methods of computation are followed in this interim condensed consolidated report as were applied in the Group's annual financial statements for the year ended 30 November 2008. The financial information set out in this half-yearly report does not constitute statutory accounts as defined in Section 240 of the Companies Act 1985.

2.    Taxation

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

3.    Loss per share

Basic loss per share is calculated by dividing the loss attributable to ordinary shareholders of £95,557 (May 2008: £156,711; November 2008: £1,020,523) by the weighted average number of shares of 93,070,100 (May 2008: 88,070,100; November 2008: 89,741,243) in issue during the period. 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 therefore is not dilutive under the terms of Financial Reporting Standard 22 'Earnings Per Shares'.

For further information please visit the Company's website, www.albamineralresources.com or contact:

Alba Mineral Resources plc	Mike Nott, Chairman	Tel: [phone]
Dowgate Capital Advisers Ltd	Liam Murray / Aaron Smyth	Tel: [phone]

 

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