Interim Results

Tertiary Minerals PLC 20 May 2003 Interim Statement for the six months ended 31 March 2003 Chairman's Statement I am pleased to report the Company's progress and interim results for the six-month period to 31st March 2003, significant progress having been made in a number of areas. Review of Activities In Saudi Arabia, a positive scoping study was completed for the Ghurayyah tantalum-niobium project indicating a three-year payback on capital costs of $101 million, with attractive rates of return. The future development of this, the world's largest deposit of tantalum, is enhanced by the favourable project financing environment in Saudi where equity contribution could be as little as 12.5% of capital costs. In Scandinavia, exploration tempo has increased as drill targets generated by the Company's past exploration efforts are now being progressively tested. A drilling programme was recently completed on the Finnmark Platinum Group Metals project to investigated outcrops containing Platinum Group Metals and coincident geophysical anomalies, whilst at NottrTM?sk in Sweden a nickel-copper target will be drilled shortly. Exciting drill targets are also emerging from the Company's recently initiated search for Olympic Dam (IOCG) style copper-gold deposits, for example at Ahmavuoma where previous drilling returned wide intersections of copper-gold-cobalt mineralisation. The Company's share price has continued to reflect weak stock market sentiment and in particular a depressed tantalum market in its major application in the electronics industry. However, in 2003 the tantalum market is recovering, as predicted in the Company's last annual report. It is reported that the negative impact of de-stocking in the electronics supply chain has largely been removed and real demand is being generated from the new generation of mobile phones. Kemet and Cabot Corporations, leading manufacturers of tantalum capacitors and powders, are reported to have increased quarterly sales by 7% and 21% respectively, and Sons of Gwalia have announced new sales contracts for additional tantalum concentrate at prices in line with its historical contracted prices, which are substantially above recent spot prices for tantalum. Your Board hopes that this recovery in the tantalum market will result in a stronger share price for the Company. Results The Group loss for the period was £134,085. This comprises bank interest income of £4,368, administration costs of £113,895 and exploration costs written-off amounting to £24,558. In May 2003, following the end of the reporting period, a placement of 3,125,000 shares was made at 8 pence per share to raise £235,000, net of expenses, for working capital. Full details of the Company's progress can be found in the various press releases and quarterly reports published on the Company's recently refurbished website at www.tertiaryminerals.com. Patrick L Cheetham Executive Chairman 20 May 2003 For further information contact:- Tertiary Minerals plc Sunrise House Hulley Road Tel: +44 (0)1625 626203 Macclesfield Fax: +44 (0)1625 626204 Cheshire SK10 2LP United Kingdom Website: www.tertiaryminerals.com Consolidated Profit and Loss Account for the six months to 31 March 2003 Six months to Six months to 31 Twelve months to 31 March 2003 March 2002 30 September Unaudited Unaudited 2002 £ £ £ ------------- --------------- ---------------- Administrative expenses (113,895) (145,073) (266,903) Exploration costs written off (24,558) (3,695) (15,923) ------------- --------------- ---------------- Operating loss (138,453) (148,768) (282,826) Interest receivable 4,368 4,213 9,604 ------------- --------------- ---------------- Loss on ordinary activities before taxation (134,085) (144,555) (273,222) Taxation - - - ------------- --------------- ---------------- Loss for the financial period (134,085) (144,555) (273,222) (note 2) ------------- --------------- ---------------- Loss per share - basic (pence) (0.5) (0.6) (1.1) ------------- --------------- ---------------- All the above amounts are derived from continuing activities Consolidated Statement of Total Recognised Gains and Losses for the six months to 31 March 2003 Six months to Six months to Twelve months to 30 31 March 2003 31 March 2002 September Unaudited Unaudited 2002 £ £ £ ------------- --------------- ---------------- Loss for the financial year (134,085) (144,555) (273,222) ------------- --------------- ---------------- Foreign exchange translation differences on foreign currency net investments in 27,701 14,684 21,490 subsidiaries ------------- --------------- ---------------- ------------- --------------- ---------------- Total recognised losses since last accounts (106,384) (129,871) (251,732) ------------- --------------- ---------------- Consolidated Balance Sheet as at 31 March 2003 As at 31 March As at 31 March As at 2003 2002 30 September Unaudited Unaudited 2002 £ £ £ ------------- --------------- -------------- Fixed assets Intangible Assets 1,200,367 780,469 1,065,724 Tangible Assets 6,704 10,117 9,542 ------------- --------------- -------------- 1,207,071 790,586 1,075,266 Current assets Debtors 67,697 36,108 67,772 Cash at bank and in hand 200,305 458,125 393,760 ------------- --------------- -------------- 268,002 494,233 461,532 ------------- --------------- -------------- Creditors: amounts falling due within one year 65,582 123,482 111,623 ------------- --------------- -------------- Net current assets 202,420 370,751 349,909 ------------- --------------- -------------- ------------- --------------- -------------- Total assets less current liabilities 1,409,491 1,161,337 1,425,175 ------------- --------------- -------------- Capital and reserves Called up share capital 284,210 244,428 276,652 Share premium 1,849,978 1,413,361 1,766,836 Merger reserve 131,096 131,096 131,096 Profit and loss account (855,793) (627,548) (749,409) ------------- --------------- -------------- Shareholders' funds 1,409,491 1,161,337 1,425,175 ------------- --------------- -------------- Consolidated Cash Flow Statement for the six months to 31 March 2003 Six months to Six months to 31 Twelve months to 30 31 March 2003 March 2002 September Unaudited Unaudited 2002 £ £ £ ------------- --------------- -------------- Net cash outflow from operating activities (note 3) (165,016) (82,964) (248,495) Return on investments and servicing of finance 4,368 4,213 9,604 Capital expenditure and financial investment (123,507) (196,320) (488,499) Acquisition and disposals - - - ------------- --------------- -------------- Net cash outflow before financing (284,155) (275,071) (727,390) Financing 90,700 439,461 827,415 ------------- --------------- -------------- ------------- --------------- -------------- (Decrease)/Increase in cash in the period (note 4) (193,455) 164,390 100,025 ------------- --------------- -------------- Notes to the Interim Statement 1. Basis of preparation The interim report has been prepared on the basis of the accounting policies set out in the Company's financial statements for the period ended 30 September 2002. The financial information set out in this statement relating to the period ended 30 September 2002 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 Group 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 2002 are extracts from the interim report for that period and are also unaudited. 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 2003 Six months to 31 March 2002 Twelve months to Unaudited Unaudited 30 September 2002 --------------------------- --------------------------- ---------------- Loss for the period (£) (134,085) (144,555) (273,222) Weighted average shares in 28,253,871 23,024,218 24,554,739 issue Basic loss per share (pence) (0.5) (0.6) (1.1) --------------------------- --------------------------- ---------------- The loss attributable to ordinary shareholders and the weighted average number of ordinary shares used for the purpose of calculating diluted earnings per share, are identical to those used to calculate 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 2003 Six months to 31 March Twelve months to Unaudited 2002 Unaudited 30 September 2002 £ £ £ --------------------------- ----------------------- ---------------- Operating loss (138,453) (148,768) (282,826) Depreciation charge 2,976 3,566 5,615 Intangible fixed assets written off 16,427 - 10,003 Loss on foreign exchange - - - Decrease/(Increase) in debtors 75 2,207 (29,457) (Decrease)/Increase in creditors (46,041) 60,031 48,170 --------------------------- ----------------------- ---------------- --------------------------- ----------------------- ---------------- Net cash outflow from operating activities (165,016) (82,964) (248,495) --------------------------- ----------------------- ---------------- 4. Reconciliation of net cash outflow to movement in net funds Six months to 31 March 2003 Six months to 31 March 2002 Twelve months to Unaudited Unaudited 30 September 2002 £ £ £ --------------------------- ------------------------- ----------------- (Decrease)/increase in net cash in the period (193,455) 164,390 100,025 Opening net fund 393,760 293,735 293,735 --------------------------- ------------------------- ----------------- Closing net funds 200,305 458,125 393,760 --------------------------- ------------------------- ----------------- 5. Interim report Copies of this interim report will be sent to all shareholders and are available from Tertiary Minerals 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 LXEBFBBQ

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