Interim Results

Sunrise Diamonds PLC 18 May 2006 SUNRISE DIAMONDS PLC Interim Statement for the six months ended 31 March 2006 Chairman's Statement I am pleased to report the Company's progress and interim results for the six-month period to 31st March 2006. Review of Activities The Company is exploring for diamonds in Finland in the Karelian Craton, a prospective geological block which, over the border in Russia, hosts world-class diamond deposits in the Arkhangelsk region including the rich Grib pipe and the multi-pipe Lomonosov complex currently being developed by Alrosa. Since the publication of our first annual report in December 2005, we have reported considerable further progress and success including the discovery of two additional kimberlites in the new Kuusamo cluster, bringing the total so far discovered to seven, and the recovery of micro-diamonds from the Anomaly 45 and Kattaisenvaara kimberlites. The results of micro-diamond analysis for samples from the latest kimberlite discovery, the 'Lampi' kimberlite, are still awaited. The Company is now undertaking a rigorous technical evaluation of the Kuusamo kimberlites to determine their potential for commercial diamond content which, if indicated, would need to be confirmed with larger scale sampling programmes. Whilst drilling and other field activities have focused in Kuusamo in northern Finland, new targets have been acquired throughout Finland. In particular, this has capitalised on the data contained in BHP Billiton's Finland diamond exploration database where exclusive rights were secured by the Company last December. The database has an estimated replacement value of over $10 million and includes results from over 18,000 geochemical samples as well as a large archive of geophysical data. So far, over 20 target areas have been selected from the BHP Billiton database and are now secured with over 600 sq. km. of claims and claim reservation applications. These targets are defined by probable kimberlite dispersion trains having no obvious relationship to known kimberlites. The majority of new targets are in the more established Kaavi-Kuopio kimberlite region of south-central Finland where 20 kimberlite pipes are already known from previous exploration, the majority of which are diamondiferous. One of these, the Lahtojoki pipe, is currently being bulk sampled by European Diamonds plc which has predicted a grade in excess of 40 carats per hundred tonnes. The Company is considering further project acquisition opportunities in Finland and throughout the reporting period has continued to evaluate diamond exploration opportunities worldwide. I am also pleased to be able to announce today the appointment of Ruegg & Co Limited as broker to the Company. Ruegg & Co, which is already our Nominated Advisor, is an independent corporate finance house established in 1992 and has advised on a wide range of both domestic and international corporate finance transactions. Results The loss for the six-month period was £97,053. This loss comprises administration costs of £93,880, exploration costs (written-off) amounting to £9,535 and interest income of £6,362. Patrick L Cheetham 18 May 2006 Executive Chairman For further information contact : Sunrise Diamonds plc Tel: + 44 (0)1625 505947 Sunrise House Fax: + 44 (0)1625 626204 Hulley Road Macclesfield Website: www.sunrisediamonds.com Cheshire SK10 2LP Profit and Loss Account for the six months to 31 March 2006 Six months to Period ended 30 September 31 March 2006 2005 Unaudited £ £ ---------- --------- Exploration costs written off 9,535 39,942 Administrative expenses 93,880 206,825 ---------- --------- Operating loss (103,415) (246,767) Interest receivable 6,362 7,675 ---------- --------- Loss on ordinary activities before taxation (97,053) (239,092) Tax on profit on ordinary activities - - ---------- --------- Loss for the period (97,053) (239,092) ---------- --------- Loss per share - basic (pence) (note 2) (0.12) (0.45) ---------- --------- All amounts relate to continuing activities. Balance Sheet as at 31 March 2006 As at 31 March As at 2006 30 September Unaudited 2005 £ £ ---------- --------- Fixed assets Intangible Assets 465,721 241,276 Current assets Debtors 62,207 50,008 Cash at bank and in hand 492,541 389,825 ---------- --------- 554,748 439,833 ---------- --------- Creditors: amounts falling due within one year 125,724 87,311 ---------- --------- Net current assets 429,024 352,522 ---------- --------- Creditors: amounts falling due after more than one - - year ---------- --------- Total assets less current liabilities 894,745 593,798 ---------- --------- Capital and reserves Called up share capital 93,153 75,375 Share premium account 1,137,737 757,515 Profit and loss account (336,145) (239,092) ---------- --------- Shareholders' funds 894,745 593,798 ---------- --------- Cash Flow Statement for the six months to 31 March 2006 Six months to 31 March 2006 Unaudited Period ended 30 September 2005 £ £ ---------- --------- Net cash outflow from operating activities (note 3) (77,201) (209,464) Returns on investments and servicing of finance 6,362 7,675 Capital expenditure and financial investment (224,445) (241,276) ---------- --------- Net cash outflow before financing (295,284) (443,065) Financing - issue of share capital (net of expenses) 398,000 832,890 ---------- --------- Increase in cash in the period (note 4) 102,716 389,825 ---------- --------- Notes to the Interim Statement 1. Basis of preparation The interim statement has been prepared on the basis of the accounting policies set out in the Company's financial statements for the period ended 30 September 2005. The financial information set out in this statement relating to the period ended 30 September 2005 does not constitute statutory accounts for that period. Full audited accounts in respect of that financial period (which received an unqualified audit opinion and did not contain a statement under Section 237(2) or (3) of the Companies Act 1985) have been delivered to the Registrar of Companies. The Directors are satisfied that the Company has adequate resources to continue to operate for the foreseeable future. For this reason they continue to adopt the 'going concern' basis for preparing the accounts. The interim report has been approved by the Directors and is unaudited. Comparative figures for the six months ended 31 March 2005 are not included as the Company was only formed in February 2006. 2. Loss per share Loss per share has been calculated on the attributable loss for the period and the weighted average number of shares in issue during the period. Six months to 31 March 2006 Period ended 30 September Unaudited 2005 ---------- --------- Loss (£) (97,053) (239,092) Weighted average shares in issue (No.) 79,672,924 52,658,844 Basic loss per share (pence) (0.12) (0.45) ---------- --------- The loss attributable to ordinary shareholders and weighted average number of ordinary shares for the purpose of calculating the diluted earnings per share are identical to those used for the basic earnings per ordinary share. This is because the exercise of share warrants would have the effect of reducing the loss per ordinary share and is therefore not dilutive under the terms of FRS 14. 3. Reconciliation of operating loss to net cash outflow from operating activities Six months to 31 March Period ended 30 September 2006 Unaudited 2005 £ £ ---------- --------- Operating loss (103,415) (246,767) Depreciation - - Increase in debtors (12,199) (50,008) Increase in creditors 38,413 87,311 ---------- --------- Net cash outflow from operating activities (77,201) (209,464) ---------- --------- 4. Reconciliation of cash flow to movement in net funds Six months to 31 March 2006 Unaudited Period ended 30 September 2005 £ £ ---------- --------- Increase in cash in the period 102,716 389,825 Opening net funds 389,825 - ---------- --------- Closing net funds 492,541 389,825 ---------- --------- 5. Related party transactions The Company is an associated undertaking of Tertiary Minerals plc which holds 24.58% of the issued ordinary share capital at the balance sheet date. 6. Interim report Copies of this interim report will be sent to all shareholders and are available from Sunrise Diamonds plc, Sunrise House, Hulley Road, Macclesfield, Cheshire, SK10 2LP, United Kingdom. This information is provided by RNS The company news service from the London Stock Exchange

Companies

Sunrise Resources (SRES)
UK 100
FTSE quotes by TradingView

Latest directors dealings

All directors dealings today