Final Results for the Year En

RNS Number : 1100D

Bezant Resources PLC

26 November 2009

 



26 November 2009

Bezant Resources Plc

("Bezant" or the "Company")

Final Results for the Year Ended 30 June 2009

Bezant (AIM: BZT), the AIM listed gold and copper exploration and development company operating in the Philippines and Tanzania, announces its audited final results for the year ended 30 June 2009.

Highlights:

Mankayan Copper-Gold project, Philippines:

• Significant resource upgrade to a JORC compliant Indicated Resource of approximately 221.6 million tonnes and an Inferred Resource of approximately 36.2 million tonnes at a 0.4 per cent. copper cut-off. 

• Upgraded Mineral Resource represents an Indicated Resource of approximately 2.42 billion pounds (1.1 million tonnes) of copper and 3.7 million ounces of gold, along with an additional Inferred Resource of 0.44 billion pounds (0.2 million tonnes) of copper and 0.6 million ounces of gold.

Tanzania:

• 40% of the Company's earn-in now completed in respect of the package of 9 prospective tenements with Prospecting Licences covering an area of approximately 2,116 square kilometres.

Corporate: 

• £1.64 million cash in Bank at the period end with low burn rate.

• As a consequence of exploration activities during the period, the Company incurred a consolidated loss after tax (but before impaired investments expensed) for the financial year ended 30 June 2009 of £883,000.  Impaired investments expensed for the financial year totaled £889,000.

Gerry Nealon, Executive Chairman of the Company commented: 

"Bezant's core Mankayan Project has now been confirmed by an independent authority to an indicated Resource status, with the potential to generate a world class mine especially when compared to its peers, situated in the area of Luzon in the northern Philippines.  

These peers serve to clearly demonstrate the will, stability, port access and infrastructure that exists to support further potential major mining developments in the Philippines.  We look forward to reporting upon the Company's future plans for this flagship Project in the early part of next year".

For further information, please contact:

Gerry Nealon

Executive Chairman, Bezant Resources Plc

Tel: [phone]

Bernard Olivier

Executive Director, Bezant Resources Plc

Tel: [phone]

James Harris / Matthew Chandler

Strand Hanson Limited

Tel: [phone]

Laurence Read / Beth Harris

Threadneedle Communications (UK)

Email: [e-mail]

Tel: [phone]

Mob: [phone]

or visit http://www.bezantresources.com

Chairman's Statement

It is again with pleasure that I am able to report to our shareholders upon the further progress made by the Company during the last financial year. In particular, we successfully completed our two year exploration programme in respect of our Filipino Mineral and Production Sharing Agreement, that covers a total of 534 hectares in the Guinaoang area of Luzon in the northern Philippines (the "Mankayan Project"). During the reporting period, the Company completed the planned four remaining diamond drill holes, with average depths in the order of 1,000 metres per hole.  Between late 2007 to mid 2009, the Company has therefore now completed a 9,778 metre drilling programme (comprising nine holes) along the full strike length of the deposit.

At the time of the project's acquisition in July 2007, the historical drilling data indicated a non-JORC compliant resource in the order of 166 million tonnes, relating to 1.9 billion pounds of contained copper and 2.9 million ounces of gold. In July 2008, the Company announced the outcome of its digitisation of this historic data, with Snowden Mining Industry Consultants Pty. Limited ("Snowden") independently confirming a JORC compliant Inferred Resource at a 0.4 per cent. copper cut-off of approximately 277.7 million tonnes grading at 0.50% copper and 0.42 g/t gold.  This represented 3.06 billion pounds (1.39 million tonnes) of copper and 3.8 million ounces of gold within the Inferred Resource. In July of this year, following review of the exploration data obtained from our 9 hole drilling programme, Snowden provided the Company with a significant resource upgrade to 221.6 million tonnes Indicated and 36.2 million tonnes Inferred at a 0.4% copper cut-off. The upgraded Mineral Resource represents an Indicated Resource of 2.42 billion pounds (1.1 million tonnes) of copper and 3.7 million ounces of gold, along with an Inferred Resource of 0.44 billion pounds (0.2 million tonnes) of copper and 0.6 million ounces of gold. Our two year exploration programme has therefore resulted in a 1 billion pounds (52%) increase in the copper content and a 1.4 million ounces (48%) increase in the gold resource. The new Indicated Resource status now accounts for approximately 86% of the total resource (i.e. all categories).

Independent laboratory test work on core samples was also conducted by AMMTEC laboratories in Perth, Western Australia. The test work indicated that excellent copper and gold recoveries of around 94% and 74% respectively, could be anticipated. The high copper and gold recoveries are expected to produce a saleable concentrate with a grade in excess of 30% copper. The metallurgical test work also showed that all impurity elements were below penalty levels commonly quoted by smelters.

In October 2009, the Company extended its subsidiary's (Asean Copper Investments Limited's) option, originally granted in 2007, to acquire the remaining 60 per cent. of Crescent Mining Development Corporation for PHP2,000,000 (approximately US$40,000) for a further two years to October 2011. The option is renewable on a biennial basis for a fee of approximately US$10,000, thereby affording the Company the opportunity to acquire the whole of the Mankayan Project at limited additional cost.

The Company's wholly owned subsidiary, Anglo Tanzania Gold Limited, still maintains its 46 per cent. interest in the "Mkurumu Project" in Tanzania, with Anglo Gold Ashanti retaining a similar 46 per cent. stake and the remaining 8 per cent. being held by indigenous Tanzanian locals. An application was submitted to the relevant Tanzanian authorities to renew the Licence for the above Mkumuru Project Area in 2008 and although now approved, there was a considerable processing delay. The Board has reviewed the ongoing commercial viability of the Mkurumu Project and has decided to fully impair the carrying value of the investment in the financial statements for the year to 30 June 2009.

The Company has to date completed the acquisition of a 40 per cent. interest in certain other tenements in Tanzania via its two year earn-in arrangement with two local Tanzanian exploration companies, entered into in May 2008, which will ultimately enable the Company to progressively acquire up to a 50 per cent. interest in return for funding exploration expenditure of US$800,000 from May 2008 (capped at US$100,000 per quarter). The package consists of 9 prospective tenements together with Prospecting Licences covering, in aggregate, some 2,116 square kilometres, and an additional 3 applications for either new licences or renewals, covering approximately a further 455 square kilometres. First pass reconnaissance work to date, including satellite imagery and airborne geophysical surveys, has identified several drainage channels that contained free gold. Systematic heavy mineral drainage and rock sampling work is currently nearing completion at the tenements. The Board is currently reviewing these early exploration results with regards to ascertaining the potential for achieving an Inferred Resource, and I look forward to announcing further news in the first quarter of 2010.

As a consequence of our exploration activities during the period, the Company incurred a consolidated loss after tax (but before impaired investments expensed) for the financial year ended 30 June 2009 of £883,000.  Impaired investments expensed for the financial year totalled £889,000.

In closing, I would like to again state that the Company's core "Mankayan Project" has firmed up a resource with the potential to generate a world class mine, especially when compared to its peers in the area throughout Luzon in the northern Philippines. These peers serve to clearly demonstrate the will, stability, port access and infrastructure that exists to support further potential major mining developments in the Philippines. I look forward to reporting upon the Company's future plans for this flagship Project in the early part of next year.

Gerard A. Nealon

Executive Chairman

Consolidated income statement

For the year ended 30 June 2009

			2009	2008
	Notes		£'000	£'000
Consolidated turnover			-	-
Cost of sales			-	-
Gross profit			-	-
Administrative expenses			(948)	(1,090)
Impairment expenses			(889)	(5,985)
Consolidated operating loss			(1,837)	(7,075)
Interest receivable			55	180
Other income			10	-
Interest payable			-	-
Loss on ordinary activities  before taxation			(1,772)	(6,895)
Taxation			-	-
Loss on ordinary activities  after taxation			(1,772)	(6,895)
Loss for the period			(1,772)	(6,895)
Loss per share - pence
Basic	2		(4.52p)	(18.66p)
Diluted	2		(4.52p)	(18.69p)

Statement of changes in equity

For the year ended 30 June 2009

	Share Capital £'000	Share Premium £'000	Other Reserves £'000	Accumulated Losses £'000	Total  Equity £'000
Consolidated
Balance at 1 July 2008	1,016	21,904	165	(12,498)	10,587
Cost of share-based payments	-	-	84	-	84
Current year loss	-	-	-	(1,772)	(1,772)
Foreign currency reserve	-	-	47	-	47
Balance at 30 June 2009	1,016	21,904	296	(14,270)	8,946

Consolidated
Balance at 1 July 2007	987	10,576	686	(5,603)	6,646
Share issues	29	11,742	-	-	11,771
Share issue costs	-	(414)	-	-	(414)
Reversal of placement funds received in advance	-	-	(665)	-	(665)
Cost of share-based payments	-	-	136	-	136
Current year loss	-	-	-	(6,895)	(6,895)
Foreign currency reserve	-	-	8	-	8
Balance at 30 June 2008	1,016	21,904	165	(12,498)	10,587

Statement of changes in equity

For the year ended 30 June 2009

	Share Capital £'000	Share Premium £'000	Other Reserves £'000	Accumulated Losses £'000	Total  Equity £'000
Company Balance at 1 July 2008	1,016	21,904	142	(12,427)	10,635
Cost of share-based payments	-	-	84	-	84
Current year loss	-	-	-	(1,731)	(1,731)
Balance at 30 June 2009	1,016	21,904	226	(14,158)	8,988
Company
Balance at 1 July 2007	987	10,576	671	(5,515)	6,719
Share issues	29	11,742	-	-	11,771
Share issue costs	-	(414)	-	-	(414)
Placement funds received in Advance	-	-	(665)	-	(665)
Cost of share-based payments	-	-	136	-	136
Current year loss	-	-	-	(6,912)	(6,912)
Balance at 30 June 2008	1,016	21,904	142	(12,427)	10,635

Balance sheet

As at 30 June 2009

			Consolidated		Company
			2009	2008	2009	2008
			£'000	£'000	£'000	£'000
ASSETS
Current assets
Trade and other receivables			101	7	101	7
Cash at bank and in hand			1,642	3,713	1,642	3,673
Total current assets			1,743	3,720	1,743	3,680
Non-current assets
Intangible assets - goodwill			-	-	-	-
Plant and equipment			27	32	24	29
Investment in subsidiary			-	-	-	-
Investments			7,159	6,846	7,159	6,889
Deferred exploration and evaluation costs			121	149	121	149
Total non-current assets			7,307	7,027	7,304	7,067
TOTAL ASSETS			9,050	10,747	9,047	10,747
LIABILITIES
Current liabilities
Trade and other payables			104	160	59	112
Total current liabilities			104	160	59	112
NET ASSETS			8,946	10,587	8,988	10,635
CAPITAL AND RESERVES
Called up share capital	3		1,016	1,016	1,016	1,016
Share premium account	3		21,904	21,904	21,904	21,904
Share based payment reserve	3		226	142	226	142
Other reserves	3		70	23	-	-
Accumulated losses	3		(14,270)	(12,498)	(14,158)	(12,427)
TOTAL EQUITY			8,946	10,587	8,988	10,635

Cash flow statement

For the year ended 30 June 2009

			Consolidated		Company
			2009	2008	2009	2008
			£’000	£’000	£’000	£’000
Net cash outflow from operating activities	6		(1,238)	(974)	(1,233)	(890)
Cash flows from investing activities
Interest received			55	180	55	179
Other income			48	73	48	73
Proceeds from sale of investments			12	-	12	-
Payments for plant and equipment			(6)	(32)	(5)	(29)
Payments to fund exploration			(201)	(149)	(201)	(149)
Payments to acquire investment in associate			-	(500)	-	(500)
Loans to associates and subsidiaries			(808)	(605)	(773)	(748)
Payments to acquire investments			-	(200)	-	(200)
Payments for joint venture expenditure			-	(35)	-	-
Net cash outflow from investing activities			(900)	(1,268)	(864)	(1,374)
Cash flows from financing activities
Cash proceeds from issue of shares			-	4,335	-	4,335
Share issue costs			-	(26)	-	(26)
			-	4,309	-	4,309
(Decrease)/Increase in cash			(2,138)	2,067	(2,097)	2,045
Cash and cash equivalents at beginning of year			3,713	1,625	3,673	1,616
Foreign exchange movement			67	21	66	12
Cash and cash equivalents at end of year			1,642	3,713	1,642	3,673

Notes to the financial information

For the year ended 30 June 2009

         1.    Basis of preparation

The audited financial information set out above, which incorporates the financial information of the Company and its subsidiary undertakings (the "Group"), has been prepared using the historical cost convention and in accordance with International Financial Reporting Standards ("IFRS") including IFRS 6 'Exploration for and Evaluation of Mineral Resources', as adopted by the European Union ("EU") and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS.

The audited financial information contained in this announcement does not constitute the Company's full financial statements for the year ended 30 June 2009 or 2008, but is derived from those financial statements, approved by the board of directors. The auditors' report on the 2009 accounts was unqualified and did not contain any statement under section 498(2) or (3) of the Companies Act 2006.  The full audited financial statements for the year ended 30 June 2009 which will be delivered to the Registrar of Companies and filed at Companies House following the Company's forthcoming annual general meeting.

2.    Loss per share

The basic and diluted loss per share have been calculated using the loss for the 12 months ended 30 June 2009 of £1,772,000 (2008: £6,895,000). The basic loss per share was calculated using a weighted average number of shares in issue of 39,162,223 (2008: 36,944,824). The diluted loss per share has been calculated using an additional weighted average number of shares in issue and to be issued of 41,360,023 (2008: 36,890,621). The diluted loss per share and the basic loss per share are recorded as the same amount, as the conversion of share options decreases the basic loss per share, thus being anti-dilutive.

3.	Share capital
	Number	Class	Nominal  value	Year ended 30 June 2009	Year ended 30 June 2008
				£'000	£'000
	Authorised
	690,432,500	Ordinary	0.2p	1,381	1,381
	7,959,196	Deferred	4p	319	319
	625,389	Deferred	99p	619	619
				2,319	2,319
	Allotted, called up and fully paid
	39,162,223	Ordinary	0.2p	78	78
	7,959,196	Deferred	4p	319	319
	625,389	Deferred	99p	619	619
				1,016	1,016
					Number of shares
	The movement in the share capital is summarised below:
	As at 1 July 2008				39,162,223
	Movement for the year				-
	As at 30 June 2009				39,162,223

			2009
			£'000
	The share premiums arising as a result of the above share transactions were as follows:
	As at 1 July 2008		21,904
	Movement for the year		-
	As at 30 June 2009		21,904

4.    Statement of movement on reserves
Consolidated	Share-based payment reserve	Foreign exchange reserve	Revaluation reserve	Accumulated losses
	£'000	£'000	£'000	£'000
At 1 July 2008	142	23	-	(12,498)
Cost of share-based payments	84	-	-	-
Current year loss	-	-	-	(1,772)
Currency translation differences on foreign operations	-	47	-	-
At 30 June 2009	226	70	-	(14,270)

5.    Reconciliation of movements in shareholders' funds
	Consolidated		Company
	2009	2008	2009	2008
	£'000	£'000	£'000	£'000
Loss for the period	(1,772)	(6,895)	(1,731)	(6,912)
Shares issued less costs	-	11,357	-	11,357
Placement funds received in advance	-	(665)	-	(665)
Currency translation differences on  foreign currency operations	47	8	-	-
Cost of share-based payments	84	136	84	136
Opening shareholders' funds	10,587	6,646	10,635	6,719
Closing shareholders' funds	8,946	10,587	8,988	10,635

6.    Reconciliation of operating loss to net cash outflow from operating activities
	Consolidated		Company
	2009	2008	2009	2008
	£'000	£'000	£'000	£'000
Group operating loss	(1,772)	(6,895)	(1,731)	(6,912)
Depreciation and amortisation	11	4	10	3
Interest income	(55)	(180)	(55)	(179)
Share-based payment charge	84	136	84	136
Other income	(10)	-	(10)	-
VAT refunds received	(38)	(73)	(38)	(73)
Impairment in investments	767	5,985	229	5,986
Foreign Exchange loss	(185)	(12)	(185)	(12)
Loss on investments	122	-	122	-
Provision for loan recoverability	-	-	500	82
(Increase)/decrease in debtors	(106)	38	(106)	33
(Decrease)/increase in creditors	(56)	23	(53)	46
Net Cash outflow from operating activities	(1,238)	(974)	(1,233)	(890)

7.    Availability of Annual Report and Financial Statements

Copies of the Company's full Annual Report and Financial Statements are expected to be posted on 26 November 2009 to those shareholders who have elected to receive hard copy shareholder communications from the Company and, once posted, will also be made available to download from the Company's website at www.bezantresources.com

The Annual Report and Financial Statements will also be made available for inspection at the Company's registered office during normal business hours on any weekday. Bezant Resources Plc is registered in England and Wales with registered number 02918391. The registered office is at Quadrant House, Floor 6, 4 Thomas More Square, London E1W 1YW.

 

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