Interim Results
Regency Mines PLC
31 March 2006
REGENCY MINES PLC
Interim report - six months ended 31 December 2005
Chairman's statement
The half year to December saw a continuation of high prices in the hard
commodity markets, but on our smaller stage was punctuated by two events: one
just after the beginning of the period and one just after its end.
On 29th July the company listed a subsidiary company, Red Rock Resources PLC
(www.rrrplc.com), on the London AIM market. Red Rock listed with a portfolio of
iron ore and manganese assets in Western Australia and Tasmania, some of which
Regency Mines had acquired since listing, and some of which came in at listing.
With 141,860,000 shares in issue, the stock price closed its first day of
trading at 2.5 pence, valuing Regency's 71.37 % shareholding at £2.5m.
In February 2006, just after the period end, the company was able to dispose of
its holding in Thor Mining PLC, held since before that company's listing on AIM
in June 2005, for net proceeds of £204,384, an excess over book value of
£160,184, increasing the company's cash reserves to a more comfortable
level.
During the half year an exploration programme was carried out at three areas of
the company's Bundarra copper-gold property in Queensland which surrounds a 15
km by 10 km granodiorite pluton. At Isens, soil sampling was completed on 200m
x 80m centres in open terrain. Results were significant peaking at 3.1% copper
with 0.9g/t gold and 10.8g/t silver. Other results included 0.5% copper with
0.36g/t gold and 2.5g/t silver. Copper and gold anomalism was outlined over
approximately 1500m of strike and remained open to the west. At surface,
mineralisation was up to 30m wide. Drilling of three traverses of angled RC
holes is required to test mineralisation at depth.
At the second Bundarra area, Flora Range, soil sampling was completed over 4km
of strike on 200m x 80m centres. Copper and gold anomalism was outlined over
the entire 4km of strike and remained open to the southwest. Maximum results
were 2400ppm copper with 28ppb gold and 2.7g/t silver. Ten sets of historic
workings were located within the Flora Range area, each commonly returning +2%
copper from historic rockchip sampling by previous explorers. Only one working
has been tested by a single RC hole that, significantly, returned 3m at 7.2g/t
gold from 36m. A ground geophysical survey (IP) and RC drilling is required to
test the peak geochemical response.
At the third area, Mt Flora, the immediate area of historic workings has been
subject to much surface exploration in the past and, consequently, soil sampling
and mapping was focused on potential northern and southern strike extensions to
mineralisation. Sampling returned a peak of 254ppm copper and 7ppb gold.
Results confirmed mineralisation continues northwest of the historic workings
for some 2500m, and also southeast for a further 1800m. However, mineralisation
is of a more subtle nature than that encountered at Isens and Flora Range. This
suggests a large, low-grade disseminated style of mineralisation for Mt Flora.
Step out RC or diamond drilling of the Mt Flora mineralisation is required.
During August, magnetic and radiometric data from a detailed airborne survey
were processed and imaged. Total count (K, Th, U) radiometric data illustrates
the strong alteration of the Permian sedimentary rocks in contact with the
margin of the Bundarra intrusion, and highlights the potential for economic
accumulations of uranium. Subsequent imaging of the airborne uranium data
revealed several discrete anomalies within the project area. These are
scheduled for ground follow-up.
The results to date of the sampling and mapping program at Bundarra justify
moving to the next stage of exploration. The results in the Isens area mean
that this will be a focus of further exploration effort, including drilling.
The Flora Range results will be followed up by further exploration, including
drilling. Continued mapping and sampling of areas around the edge of the
Bundarra intrusion will be undertaken to test hitherto unexplored areas. The
objective remains to identify and delineate high grade copper zones as well as
potential low grade bulk tonnage targets.
The company established a new subsidiary, Range Mines Ltd, to hold interests in
zinc properties at the Lennard Shelf and near Halls Creek in the East Kimberley
area, in anticipation of the sharp improvement in zinc prices that took place
during the period.
In October the company's subsidiary Red Rock acquired uranium and iron ore
properties in the Northern Territory of Australia, and subsequently also
acquired uranium projects in Malawi. As a result of these transactions, the
company's stake in Red Rock has reduced to 62.63%.
On 10th March 2006 the company's shares began trading in Frankfurt and the
company has also been one of the first AIM companies to start trading on the
PLUS Markets trading platform.
Although the Thor Mining holding has been sold, the company has been presented
with other opportunities for participation in new IPOs in exchange for its
advice, services, or assets, and expects to continue to derive benefit from
advisory and financing activities. The current Red Rock share price of 2.13p is
equivalent to 1.72p per Regency share.
The directors look to 2006 with confidence.
Andrew Bell
Chairman
29 March 2006
Consolidated profit & loss account
6 months to 31 Period 10 Period 10
December 2005 September 2004 September 2004
to 31 December to
2004 30 June 2005
Unaudited Unaudited Audited
£,000 £,000 £,000
Turnover - - -
Administrative expenses (184) (13) (108)
Operating loss on ordinary activities (184) (13) (108)
Interest receivable 2 - -
Loss on ordinary activities before taxation (182) (13) (108)
Tax on profit on ordinary activities - - -
Loss on ordinary activities after taxation (182) (13) (108)
Minority interests 26 - 2
Retained loss for the period £(156) £(13) £(106)
Loss per share - see note 3
Basic (0.12) pence (34.3) pence (0.13) pence
Fully diluted (0.12) pence (0.6) pence (0.13) pence
Consolidated balance sheet
31 December 31 December 30 June 2005
2005 2004
Unaudited Unaudited Audited
£,000 £,000 £,000
Fixed assets 1,568 49 963
Current assets
Debtors 41 12 28
Trading investments - see note 2 44 - 44
Cash at bank and in hand 286 43 154
371 55 226
Creditors - amounts falling due within one year (101) (35) (144)
Net current assets 270 20 82
Total assets less current liabilities £1,838 £69 £1,045
Capital and reserves
Called up share capital 125 72 125
Share premium account 992 - 992
Profit and loss account (257) (13) (106)
Other reserves 539 10 12
Equity shareholders' funds 1,399 69 1,023
Minority interests 439 0 22
£1,838 £69 £1,045
Consolidated cash flow statement
6 months to 31 Period 10 Period 10
December 2005 September 2004 September 2004
to 31 December to
2004 30 June 2005
Unaudited Unaudited Audited
£,000 £,000 £,000
Net cash inflow/(outflow) from operating activities (241) 21 (39)
Capital expenditure and investment (605) (8) (910)
Cash outflow before financing (846) 13 (949)
Financing 978 30 1,103
Increase in cash in the period £132 £43 £154
Reconciliation of movement in shareholders' funds
6 months to 31 Period 10 Period 10
December 2005 September 2004 September 2004
to 31 December to
2004 30 June 2005
Unaudited Unaudited Audited
£,000 £,000 £,000
Total recognised losses relating to the period (156) (13) (106)
Proceeds of share issues, net of expenses - 72 1,117
Other reserves 532 10 12
Increase in shareholders' funds 376 69 1,023
Opening shareholders' funds 1,023 0 0
Closing shareholders' funds £1,399 £69 £1,023
Interim report notes
1. Interim report
This interim report was approved by the Directors on 29 March 2006.
The information relating to the six month periods to 31 December 2005 and 31
December 2004 is unaudited.
The information relating to the year ended 30 June 2005 is extracted from the
audited accounts of the Company which have been filed at Companies House and on
which the auditors issued an unqualified audit report.
2. Basis of accounting
The report has been prepared using accounting policies and practices that are
consistent with those adopted in the statutory accounts for the year ended 30
June 2005 by the Group and its subsidiary undertakings, although the information
does not constitute statutory accounts within the meaning of section 240 of the
Companies Act 1985.
These interim financial statements consolidate the financial statements of the
Company and its subsidiaries.
The Company and Group will report again for the full year to 30 June 2006.
3. Loss per share
6 months to 31 Period 10 Period 10
December 2005 September 2004 September 2004 to
to 31 December 30 June 2005
2004
Unaudited Unaudited Audited
£,000 £,000 £,000
These have been calculated on a loss of: (156) (13) (106)
The weighted average number of shares used was: 125,110,596 36,960 78,013,246
The effect of dilutive securities was: - 2,053,097 3,400,000
The weighted average number of shares and
dilutive outstanding options used was: 125,110,596 2,090,057 81,413,246
Basic loss per share: (0.12) pence (34.3) pence (0.13) pence
Fully diluted loss per share: (0.12) pence (0.6) pence (0.13) pence
Copies of this interim report are available free of charge by application in
writing to the Company Secretary at the Company's registered office, 55 Gower
Street, London WC1E 6HQ, or by email to andrew@bellmin.com.
Enquiries:
Andrew Bell 07766 474849 Regency Mines plc Chairman
Ron Marshman / John 020 7628 5518 City of London PR Limited Public Relations
Greenhalgh
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