Greatland Gold PLC : Interim Results
13 March 2012
Greatland Gold plc
Half-yearly report - six months ended 31 December 2011
Greatland Gold plc ("Greatland" or the "Company"), the AIM-listed and London based gold exploration and development company focused on gold projects in Tasmania and Western Australia announces today its half-yearly report for the six months ended 31 December 2011.
Highlights
Ernest Giles Project (gold),Central Western Australia
Firetower Project (gold), Northern Tasmania
- Farm in agreement with Unity Mining Limited signed in October 2011
- Unity to spend A$7.0m to earn 75%
- Drilling programme in 2012 planned with a view to increasing the existing 90,000 oz inferred gold resource
Warrentinna Project (gold), North Eastern Tasmania
- Reverse Circulation drilling programme completed at the Derby North prospect in 2011
- Single metre mineralised intercepts at 10.64g/t gold
- Further drilling planned in 2012
- Discussions underway with regard to third party investment in the Warrentinna gold project that may culminate in a farm in / JV deal for the project
- Lisle Project,North-East Tasmania
- surface sampling and mapping conducted
- 22 holes drilled for 479m during 2011
Callum Baxter, CEO of Greatland Gold, commented:
"2011 saw significant progress for the Company from both an operational and corporate viewpoint. The work done throughout the year will allow us to commence drilling programmes in 2012 at our priority projects, in particular the Ernest Giles Project, in order to establish both initial and improved resources across the assets. Securing the farm in agreement with Unity Mining at our Firetower Project and entering into discussions regarding proposed third party investment at Warrentinna will provide additional expertise and capital for the Company. We will continue to build on the progress made at our other licence areas and look forward to keeping shareholders updated as the year progresses."
Enquiries:
Greatland Gold plc
Callum Baxter
Tel +44 (0)20 7099 5845
Email: info@greatlandgold.com
www.greatlandgold.com
Grant Thornton Corporate Finance
Gerry Beaney / Colin Aaronson
Tel +44 (0)20 7383 5100
NewgateThreadneedle
Graham Herring/Beth Harris
Tel +44 (0)20 7653 9850
Chief executive's statement
In the six month period ending 31st December 2011 the Company reported a reduced net loss of £217,684 equating to a loss per share of 0.07 pence (31st December 2010 EPS -0.09 pence).
Net cash outflow from operations was £215,977 which reflects total administrative expenses plus exploration expenses. From the cash flow figures it is apparent that we have remained committed to exploration. Our loss on a per share basis at 0.07p is a reduction from the loss in the comparable period reflecting lower expenses.. The Company's cash deposits stood at £890,000m at the period end and, in my opinion, we remain in a relatively strong liquidity position ahead of our 2012 exploration plans.
Our highest priority during 2012 is the Ernest Giles project, which comprises three contiguous tenements covering 948 sq km in central Western Australia. The Company now has an improved understanding of the mineralised greenstone belt hosting the project, and an encouraging first phase exploration in the historic gold region. The first four holes drilled, in a strike length of more than 100km, intersected gold bearing alteration systems with analogies to major gold deposits elsewhere in Western Australia. Our programme has confirmed that a new greenstone belt is present and that it has the potential for large-scale mineralisation. Within the 2012 programme drilling will commence on a number of targets throughout the licences, and the Company will be drilling in the area where we previously discovered gold.
A major emphasis will also be placed on the Firetower project, four contiguous tenements covering an area of 265 sq km located 65km west of Launceston in Northern Tasmania. The Company has an initial JORC inferred resource of 90,000oz gold. In October 2011 we secured a farm in agreement with Unity Mining Ltd. This allows Unity Mining to earn up to 75% of the Firetower Gold project for an expenditure of A$7m over a 5.5 year period. Since 2006, 25 holes have been drilled over 2,341m. The 2012 drilling programme is planned with a view to increasing the gold resource.
I am very optimistic too about the Warrentinna project which covers four historic goldfields of Warrentinna, Forester, Southern Cross and Waterhouse in North Eastern Tasmania. A reverse circulation drilling programme was completed during 2011, and 27 holes have been drilled for 2,369m since 2008. We have single metre mineralised intercepts up to 103g/t gold and further drilling is planned this year. Surface sampling and mapping will be completed on other gold occurrences within the Warrentinna licences, and discussions are underway with regard to third party investment in the project that may culminate in a farm in/JV deal.
The Bromus project, which we acquired in 2010, is living up to expectations, with encouraging results of a coherent gold anomaly over a large area. The exploration licence covers 140 sq km in the prolific mining district of Norseman, Western Australia. A maiden auger geochemical soil sampling programme has been completed at the project during 2011, and we anticipate a follow-up auger programme this year, focused on drill target definition.
During April 2011 drilling commenced at the East Lisle project, located about 30km north-east of Launceston in north-east Tasmania. The company drilled 22 holes for 470m and has also conducted surface sampling and mapping.
More progress is also reported on the Lackman Rock project, located in the south of the Yilgam Craton in Western Australia. An auger geochemical soil sampling programme is planned to better define elevated gold and nickel values.
During 2011 we continued to receive third party inquiries relating to joint ventures covering our Tasmanian and Western Australian licences. Negotiations are continuing with several parties. We still firmly believe that the Greatland asset portfolio holds significant attractions for investors and we remain keen to find a deal that will be positive for our shareholders.
During the period we saw the retirement of Paul Askins as a director of the Company. Mr Askins was a founding director and contributed to the early stages of Company's growth. The board expresses its gratitude to Mr Askins for his work on behalf of the Company and wish him well for the future. The board is actively seeking a suitable replacement for Mr Askins and is currently engaging consultants to assist with matters relating to the Company's field operations.
On behalf of the board, I would once again like to thank shareholders for their support and invite them to visit our website at www.greatlandgold.com for periodic updates.
Callum N Baxter
CEO
13 March 2012
Group statement of comprehensive income
| 6 months to 31 December 2011 | 6 months to 31 December 2010 | Year ended 30 June 2011 | |||
| Unaudited £ | Unaudited £ | Audited £ | |||
| Turnover | - | - | - | ||
| Exploration expenses | (92,690) | (180,183) | (340,857) | ||
| Administrative expenses | (124,994) | (94,941) | (206,185) | ||
| Operating loss | (217,684) | (275,124) | (547,042) | ||
| Finance revenue Grant received | 1,075 - | 1,642 - | 3,710 37,272 | ||
| Loss on ordinary activities before taxation | (216,609) | (273,482) | (506,060) | ||
| Tax on loss on ordinary activities | - | - | - | ||
| Loss for the financial period | (216,609) | (273,482) | (506,060) | ||
| Other comprehensive income | |||||
| Gain/(loss) on revaluation of available for sale investments | (25,975) | 25,265 | 25,441 | ||
| Exchange differences on translation of foreign operations | (3,809) | 96,107 | 97,349 | ||
| Other comprehensive income for the year net of taxation | (29,784) | 121,372 | 122,790 | ||
| Total comprehensive income for the year attributable to equity holders of the parent | (246,393) | (152,110) | (383,270) | ||
| Loss per share - see note 3 Basic | (0.07) pence | (0.09) pence | (0.17) pence |
Group balance sheet
| 31 December 2011 | 31 December 2010 | 30 June 2011 | |||
| Unaudited £ | Unaudited £ | Audited £ | |||
| Assets | |||||
| Non-current assets | |||||
| Tangible assets Intangible assets | 3,609 972,360 | 4,801 872,969 | 6,036 973,240 | ||
| Total non-current assets | 975,969 | 877,770 | 979,276 | ||
| Current assets Cash and cash equivalents Trade and other receivables Available for sale financial assets - see note 4 | 890,277 32,496 52,514 | 1,246,011 41,359 76,724 | 1,097,900 67,444 77,259 | ||
| Total current assets | 975,287 | 1,364,094 | 1,242,603 | ||
| Total assets | 1,951,256 | 2,241,864 | £2,221,879 | ||
| Liabilities | |||||
| Current liabilities | |||||
| Trade and other payables | (24,397) | (75,417) | (49,092) | ||
| Total liabilities | (24,397) | (75,417) | (49,092) | ||
| Net assets | £1,926,859 | £2,166,447 | £2,172,787 | ||
| Equity Called up share capital Share premium reserve Share based payment reserve Retained losses Other reserves | 300,661 3,944,860 74,443 (2,739,725) 346,620 | 289,550 3,718,471 74,443 (2,286,729) 370,712 | 300,661 3,944,860 74,443 (2,519,307) 372,130 | ||
| Total equity | £1,926,859 | £2,166,447 | £2,172,787 |
Group cash flow statement
| 6 months to 31 December 2011 | 6 months to 31 December 2010 | Year ended 30 June 2011 | |||
| Unaudited £ | Unaudited £ | Audited £ | |||
| Cash flow from operating activities | |||||
| Operating loss | (221,494) | (275,123) | (547,042) | ||
| Decrease/(increase) in debtors | 34,949 | 23,874 | (5,222) | ||
| (Decrease)/increase in creditors | (29,432) | (160,385) | (164,812) | ||
| Depreciation Grant received | - - | - - | 1,571 37,272 | ||
| Net cash outflow from operations | (215,977) | (411,634) | (678,233) | ||
| Cash flows from investing activities | |||||
| Interest received Payments to acquire intangible assets Payments to acquire tangible assets | 1,075 - - | 1,642 (134,489) | 3,710 (228,634) - | ||
| Net cash flows used in investing activities | 1,075 | (132,847) | (224,924) | ||
| Cash inflows from financing activities | |||||
| Proceeds from issue of shares Transaction costs of issue of shares | - - | - - | 250,000 (12,500) | ||
| Net cash flows from financing activities | - | - | 237,500 | ||
| Net (decrease)/increase in cash and cash equivalents Cash and cash equivalents at the beginning of period Exchange gain on cash and cash equivalents | (214,902) 1,097,900 7,279 | (544,481) 1,752,949 37,543 | (665,657) 1,752,949 10,608 | ||
| Cash and cash equivalents at end of period | 890,277 | 1,246,011 | 1,097,900 | ||
Statement of group changes in equity
Called up share capital | Share premium account | Share based payment reserve | Retained earnings | Other reserves | Total | |
| £ | £ | £ | £ | £ | £ | |
As at 30 June 2010 | 289,550 | 3,718,471 | 74,443 | (2,013,247) | 249,340 | 2,318,557 |
Loss for the period | - | - | - | (506,060) | - | (506,060) |
Gain on revaluation of available for sale investments | - | - | - | - | 25,441 | 25,441 |
Currency translation differences | - | - | - | - | 97,814 | 97,814 |
Total comprehensive income | - | - | - | (506,060) | 123,255 | (382,805) |
| Share capital issued | 11,111 | 238,889 | - | - | - | 250,000 |
| Cost of share issue | - | (12,500) | - | - | - | (12,500) |
As at 30 June 2011 | 300,661 | 3,944,860 | 74,443 | (2,519,307) | 372,595 | 2,173,252 |
Loss for the period | - | - | - | (216,609) | - | (216,609) |
Loss on revaluation of available for sale investments | - | - | - | - | (25,975) | (25,975) |
Currency translation differences | - | - | - | - | (3,809) | (3,809) |
Total comprehensive income | - | - | - | (216,609) | (29,784) | (246,393) |
| Share capital issued | - | - | - | - | - | - |
| Cost of share issue | - | - | - | - | - | - |
As at 31 December 2011 | 300,661 | 3,944,860 | 74,443 | (2,735,916) | 342,811 | 1,926,859 |
Statements of changes in other reserves
Merger reserve | Foreign currency translation reserve | Available for resale financial assets reserve | Total other reserves | |
| Group | £ | £ | £ | £ |
As at 30 June 2010 | 225,000 | 143,861 | (119,521) | 249,340 |
Net unrealised losses on financial assets available for resale | - | - | 25,441 | 25,441 |
Unrealised foreign currency gains | - | 117,321 | (19,507) | 97,814 |
As at 30 June 2011 | 225,000 | 261,182 | (113,587) | 372,595 |
Net unrealised losses on financial assets available for resale | - | - | (25,975) | (25,975) |
Unrealised foreign currency gains | - | (3,809) | - | (3,809) |
As at 31 December 2011 | 225,000 | 257,373 | (139,562) | 342,811 |
Half-yearly report notes
1. Half-yearly report
This half-yearly report was approved by the Directors on 13 March 2012.
The information relating to the six month periods to 31 December 2010 and 31 December 2011 are unaudited.
The information relating to the year to 30 June 2011 is extracted from the audited financial statements 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 financial statements for the year ended 30 June 2011, although the information does not constitute statutory financial statements within the meaning of the Companies Act 2006.
These half-yearly financial statements consolidate the financial statements of the Company and its subsidiary and are prepared in accordance with International Financial Reporting Standards as adopted for use in the European Union.
The Company and Group will report again for the full year to 30 June 2012.
3. Loss per share
| 6 months to 31 December 2011 | 6 months to 31 December 2010 | Year ended 30 June 2011 | |||
| Unaudited £ | Unaudited £ | Audited £ | |||
| These have been calculated on a loss of: | (216,609) | (273,482) | (506,060) | ||
| The weighted average number of shares used was: | 300,661,000 | 289,550,000 | 296,037,062 | ||
| Basic loss per share: | (0.07) pence | (0.09) pence | (0.17) pence |
4. Available for sale financial assets
The Group's investments were valued at £52,514 at 31 December 2011.
End
The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of the
information contained therein.
Source: Greatland Gold PLC via Thomson Reuters ONE
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