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Kalahari Minerals (KAH)

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Wednesday 17 September, 2008

Kalahari Minerals

Interim Results

RNS Number : 6194D
Kalahari Minerals PLC
17 September 2008
 



Kalahari Minerals plc / Ticker: KAH / Index: AIM / Sector: Mining & Exploration

17th September 2008

Kalahari Minerals plc ('Kalahari' or 'the Company')


Interim Results


Kalahari Minerals plc, the AIM-traded mining exploration and evaluation group with a portfolio of base metal and uranium prospects in Namibia, announces its results for the six month period ended 30 June 2008.


Overview


  • Proposed merger with Extract Resources Limited, announced post period end, will result in one of the largest uranium plays by market capitalisation listed on AIM

  • Rio Tinto acquired 14.9% of issued share capital of the Company post period end

  • Raised £14.4 million in April in a Placing of 46,080,000 New Ordinary Shares

  • Massive uranium zones intersected at Husab project, particularly at Rossing South 

  • Yielding high grades from Dordabis and Witvlei copper projects and advancing towards + 250,000 tonnes metal target

  • 25.1m lbs JORC compliant resource announced for the Ida Dome project

  • Approximately £5.7 million cash in bank at 30 June 2008, currently £5.25m million cash in bank



For further information please visit www.kalahari-minerals.com or contact:

Mark Hohnen 

Kalahari Minerals Plc

Tel: +61 (0) 8 9389 4488

Olly Cairns/Romil Patel

Blue Oar Securities Plc

Tel: +61 (0) 86430 1631 / 020 7448 4400

Richard Chase    

Ambrian Partners

Tel: 020 7634 4700

Robert Collins/Neil Elliot

Evolution Securities Ltd

Tel: 020 7071 4300

Victoria Thomas/Hugo De Salis

St Brides Media & Finance Ltd

Tel: 020 7236 1177


Chairman's Statement


We have made some very significant developments since I last reported both project wise and corporately, culminating with the announcement that we intend to merge with Extract Resources (ASX, TSX : EXT) ('Extract'), which will further strengthen our position as a leading uranium and base metals exploration company operating within Namibia with a strong treasury. Our portfolio of projects across the country, encompassing uranium, copper, zinc, lead and gold, is advancing rapidly and we continue to deliver strong results, which are reinforcing the highly prospective nature of our interests. Indeed I believe the recent investment by Rio Tinto is a testament to the quality of our assets. 


Our proposed merger with Extract, whereby Kalahari will offer 1.6 ordinary Kalahari shares for every one ordinary Extract share is effected by a recommended scheme of arrangement under the Australian Corporations Act into a single corporate entity.  The merger constitutes a reverse take-over under AIM Rules and will therefore require the consent of Kalahari shareholders at a General Meeting.  


I believe the strategy in developing our relationship with Extract has been highly successful. Our initial vend of our project interest in return for shares, allowed Extract to focus on the development of the project and for us to gain an attributable value to our holding. Following the advancement of the projects, in particular Rossing South, which have further quantified the uranium potential and to a certain extent, de-risked the project, the Boards of Kalahari and Extract have decided to place the entire holding in one vehicle. By simplifying the corporate structure and combining the resources of both companies through the merger, we believe the Enlarged Company will be in a strengthened position to be able to deliver short, medium and longer term benefits to all shareholders. The combined entity will also be of a size whereby it is attractive to additional investors, be it in the financial community or as proven, companies such as Rio Tinto. 


Following the restructure, it is proposed that Kalahari will be dual listed on the ASX and will be, by market capitalisation, one of the largest uranium explorers on AIM. The Enlarged Company will also have a cash position of approximately £15 million, which will allow us to continue to aggressively develop the exploration programmes of the uranium and base metal projects moving forward.


Operations


The Company's portfolio of projects is delivering on its early promise. The Extract results have been excellent, particularly at Rossing South, which is the first new alaskite hosted uranium discovery in Namibia in many years and is shaping up as the most significant discovery since the SJ deposit at the Rossing Mine. Importantly the copper prospects at Witvlei are yielding high grades and in conjunction with the Dordabis resource, these projects are steadily advancing towards the 250,000 tonnes initially targeted.  Furthermore, the Namib lead zinc project is currently at the scoping stage for production.  We have a great team in place and look forward to rapidly developing our assets and moving into the production phase.  


Copper Projects


The exploration programme to define +250,000 tonnes of copper metal at the key copper targets Dordabis and Witvlei continues with five operating reverse circulation drills ('RC') and two diamond drills ('DD') currently on site Results have been extremely encouraging and the Company remains focussed on achieving its goal of establishing a copper processing facility fed by multiple ore sources from both targets.  All historic data will be reviewed and included in the conceptual scoping study, which commenced in July 2008 on both targets to establish the viability of the projects.


Witvlei

Kalahari is currently firming up 250,000 tonnes of previously defined historic resources at the Witvlei Copper Region and is aiming to quantify a resource base that will support a viable and sustainable operation.  The Witvlei copper region drilling programme, which contains five known copper deposits over an area of 650km² continues, predominantly targeting the Malachite Pan, Okasewa and Christiadore prospects.   


A total of 180 RC holes have been drilled at Malachite Pan to date for 19,401m and 12 DD holes for 1,895m. This drilling, which aims to test historical data down to a depth of 130m and to gain an in depth understanding of where the basal breccia contact lies, has returned some encouraging assays including 24m @1.2% Cu ,16m @1.9% Cu, 15m @1.8% Cu, 12m @1.5% Cu and 16m @1.9% Cu. Mineralisation remains open and drilling continues.


At Okasewa, 39 RC holes totalling 4,963m have been drilled and major copper intersections have been generated, including 54m @1.5% Cu, 51m @ 1.0% Cu, 37m @ 1.8% Cu and 34m @1.0% Cu.  Infill RC drilling commenced in May 2008 and capacity increased from one to three rigs and there are currently two DD rigs on site for metallurgical sampling. 28 RC holes for 4,490m and 2 DD holes for 456.9m were completed to end June.  These holes concentrated on the NE target zone with recently returned copper assays for this drilling remaining extremely encouraging with highlights being 108m @ 1.21%, 35m @ 1.00%, 21m @ 1.46% and 22m @ 1.60%.


At Christiadore, 11 holes totalling 1,336m have demonstrated major copper intersections including 9m @ 2.5% Cu, 7m @ 2.9% Cu and 5m @ 3.7% Cu.


Dordabis

The Dordabis copper region, located in the heart of the Kalahari Copper Belt, contains four known copper deposits over 882km². The focus of the exploration programme remains at the Koperberg and RK prospects but now also includes the Swartberg Prospect


Approximately 25,000m of RC drilling has been completed at Koperberg which has an initial resource of 1.74mt @ 0.97% copper, representing 17,000 tonnes Cu in-situ metal. The resource remains open at depth and metallurgical test work to date indicates +90% recoveries. Channel sampling commenced in June to bring some of the oxide mineralisation at Koperberg into the above resource.


At the RK Zone, a total of 116 holes have been completed for 13,254m with major intersections including 8m @ 2.3% Cu, 12m @ 1.2% Cu and 7m @ 1.7% Cu.   


The Swartberg Prospect is a low grade yet high tonnage target with CU (+/-Ag) materialisation, hosted within an andesitic unit proximal to a North South trending regional volcanic-sedimentary contact. Initial drilling was undertaken between January and April with 43 RC holes completed for 6,898m. Best intersections to date include 46m @ 0.26% Cu, 0.62g/t Ag, 115m @ 0.16% Cu, 0.54g/t Ag, 107m @ 0.16% Cu, 0.45g/t Ag and 32m @ 0.24% Cu, 0.89g/t Ag with further assays still to be returned from the Genalysis assay laboratory in Perth.


Ubib Copper / Gold Project


Ubib is located 15km south-west of Namibia's longest producing gold mine, the four million ounce Navachab Gold Mine. A 1.4km of laterally continuous gold in soil anomaly has been identified within a Ferruginous shear zone. Best rock chip assay from the targeted drill area returned 10 g/t Au and 1.6 g/t Ag. A total of 9 DD holes have been completed for 1,874m testing soil anomalies over 1km of strike. Results from the first four holes covering 600m of strike have been returned with best assay's being 1.25 m @1.17 g/t Au, 1.86 g/t Ag, 0.1% Pb and 3m @ 3.74 g/t Au, 1.56 g/t Ag. The area presently being drill tested lies in close proximity to a major thrust and indicates extensive potassic alteration of the Etusis quartzites above the thrust zone.  Ubiquitous disseminated pyrite is associated with this zone and it may have potential for greater mineralised widths than have been intersected to date.


Namib Lead Zinc Project


Kalahari holds 90% of the Namib Lead Zinc Project, which is centred on the previously producing Namib Lead Mine, which was in operation from 1965-1992. The underground mine remains semi-developed and preliminary metallurgical test work undertaken yielded favourable results indicating good separation of Pb and Zn with high recoveries and grades.


Second stage drilling is expected to commence shortly, with the primary targets being the N20 and north orebodies. 15,000m of RC drilling is planned, plus the evaluation of the old tailings. A scoping study to assess the likely capital expenditure for mine development commenced in June 2008.


Uranium 


Extract's 637km² Husab Project is located in the heart of the Namib Desert, surrounded by a number of major uranium plays including Rio Tinto's Rossing Mine, one of the largest open pit uranium mines in the world, Uramin's Trekkopje Deposit and Paladin Resources' Langer Heinrich Mine. This geographical region is considered to be one of the most prolific uranium areas in the world.


Extract, through extensive drilling campaigns, has continued to develop the Husab project's two key areas -Rossing South and Ida Dome, consistently reporting outstanding drill results.   


Rossing South

Rossing South has, in the period, shifted much of the focus of Extract in becoming the more dominant project. Located approximately 1.5km from the boundary of Extract's licence area and 7km south of Rio Tinto's Rossing Mine, it is the Company's belief that it is the first new alaskite hosted uranium discovery in Namibia in many years, Rossing South has excellent potential to host a significant uranium deposit under the sand cover.  


Early in the drilling programme, from the first line on a 15km strike target, Extract announced they had discovered a major new uranium discovery at Rossing South, an outstanding result from the first drilling at this target. Throughout the period Extract has continued with an aggressive reconnaissance drill programme. Three large RC rigs are currently on site, dedicated to drilling out Zone 1, which has been extended to 1.8km of strike, with mineralisation open along strike to the south and at depth. It is estimated that this drill programme will define an initial resource by Q1 2009. Handheld spectrometer readings taken from the one metre bulk RC samples continue to indicate that broad zones of strong mineralisation are being intersected within uraniferous alaskite.


Following the definition of the initial Rossing South resource, full scale feasibility work to determine the optimum mining and processing options will be undertaken. Preliminary metallurgical and base line environmental monitoring is being undertaken to continually progress in tandem with the resource definition drilling in progress.  


Preliminary metallurgical test work and mineralogical work indicates favourable mineralogy for a conventional acid leach processing plant, such as that used at Rio Tinto's Rossing Mine.


Ida Dome

A maiden resource was recently announced for the Ida Dome Project of 25.1m lbs U308 within the Garnet Valley, New Camp and Ida Central zones. These areas have not as yet been closed off and are expected to continue to grow along with the resource drilling currently occurring on Holland's Dome, which is also within the Ida Dome Project. This maiden JORC resource includes results from 28,852m of drilling completed to date at Ida Dome - 48% of the planned 60,000m drilling programme. This maiden resource is a solid foundation for the uranium resource base and Ida Dome is shaping up to as a significant project in its own right.


Financials

On 14 April 2008, we announced that a placing of 46,080,000 New Ordinary Shares to raise £14.4 million at 31.25 pence per share was completed.  Use of funds to date has included increasing the Company's stake in Extract in April and continuing work programmes at the Company's base metal projects. Kalahari currently has £5.25 million cash in the bank and post merger, it is expected that the Enlarged Company will have £15m in the bank with a market capitalisation of over £100m.


We have welcomed major new institutions to our shareholder base and we look forward to the combined, strengthened international shareholder list following the Reverse Takeover of Extract. In particular Rio Tinto which announced on 11th September that it had taken a 14.9% stake in Kalahari. Additionally Rio Tinto took a 10.9% stake in Extract which will, post merger, result in Rio Tinto holding 16.55% of the Enlarged Company.  


Outlook

Kalahari is now at the next stage of its development following the merger with Extract. We have a world class portfolio of assets, an enviable cash position of circa £15m and strong institutional support. Our aim now is to continue to advance our projects through drilling and subsequent resource definition particularly at Rossing South, where we are well on the way to quantifying an initial resource by Q1 2009.


Finally I'd like to thanks all our employees for their hard work and our shareholders for their support and I look forward to reporting our continual results, both on the ground and in relation to the merger in the near future.



Mark Hohnen

Chairman

15 September 2008


KALAHARI MINERALS PLC
 
CONDENSED CONSOLIDATED INCOME STATEMENT
 

PERIOD FROM 1 JANUARY 2008 TO 30 JUNE 2008

    

 
Unaudited
period from
Audited
period from
Unaudited
period from
 
1 Jan 07 to
1 Jan 07 to
1 Jan 08 to
 
30 Jun 07
31 Dec 07
30 Jun 08
Notes
£’000
£’000
£’000


Continuing operations




Revenue - Profit on sale of joint venture interest

260

-

-


Administrative expenses

(1,959)

(3,017)

(1,211)

Geology and geophysics expenses

(99)

(631)

(1,290)



-------------------------------

-------------------------------

----------------------------

Operating loss

2

(1,798)

(3,648)

(2,501)


Finance income


117

208

167

Share of profit/ (loss) from associates 

- continuing

12,047

10,739

(1,067)


- discontinued

(259)

260

(80)

 
--------------------------------------------
--------------------------------------------
------------------------------------------
Profit/ (Loss) before taxation
10,107
7,559
(3,481)
 

Tax
 
 

 
--------------------------------------------
--------------------------------------------
------------------------------------------
Profit/ (Loss) for the period
10,107
7,559
 (3,481)




Loss per share from continuing operations is 2.54p


Loss per share from discontinued operations is 0.06p


Total loss per share is 2.60p


No adjustment is required to the loss per share as the outstanding share options are not dilutive


The share of profit/(loss) from associates is subject to final sign off by the auditors of Extract Resources Limited



KALAHARI MINERALS PLC
 
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
 
PERIOD FROM 1 JANUARY 2008 TO 30 JUNE 2008






Retained earnings

Called up share capital

Share premium

Translation reserve

Equity reserve

Other reserves

Total


£'000

£'000

£'000

£'000

£'000

£'000

£'000









At 31 December 2007 (Audited)


5,653


1,107


6,835


547


951


506


15,599









Loss for the period

(3,481)

-

-

-

-

-

(3,481)









Cash share issue

-

559

13,839

-

-

-

14,398









Equity settled share based payment transaction



-



-



-



-



303



-



303









Exchange difference arising on translation of foreign operations



-



-



-



1,351



-



-



1,351









Share of equity recognised by associated undertaking



-



-



-



-



-



5,151



5,151




------------------------



-----------------------

 



------------------------

------------------------



----------------------


 

 

 

-------------------


------------------

At 30 June 2008 (Unaudited)


2,172


1,666


20,674


1,898


1,254


5,657


33,321


==============

===============

==============

 ===============

=============

===========

===========

PERIOD FROM 1 JANUARY 2007 TO 30 JUNE 2007



Retained earnings

Called up share capital

Share premium

Translation reserve

Equity reserve

Other reserves

Total


£'000

£'000

£'000

£'000

£'000

£'000

£'000









At 31 December 2006 (Audited)


(1,906)


995


5,919


53


271


-


5,332









Profit for the period

   10,107 

-

-

-

-

-

10,107 









Cash share issue

-

93

652

-

-

-

745









Equity settled share based payment transaction



-



-



-



-



464



-



464









Exchange difference arising on translation of foreign operations



-



-



-



(13)



-



-



(13)










-------------------------

----------------------

------------------------

---------------------

--------------------

-----------------------

----------------

At 30 June 2007 (Unaudited)


8,201


1,088


6,571


40


735


-


16,635


==============

=============

==============

 =============== 

============

==============

=========


 

KALAHARI MINERALS PLC
 
CONDENSED CONSOLIDATED BALANCE SHEET
 
30 JUNE 2008

 

 
Unaudited
Audited
Unaudited
 
30 Jun 07
31 Dec 07
30 Jun 08
Notes
 
£’000
£’000
£’000
 

 

ASSETS

Non-Current Assets






Intangible assets

4


156

153

194

Property, plant and equipment

5


128

363

397

Investments in associates

6


12,102

11,974

18,481

Goodwill

7


-

-

7,381



-----------------------------

--------------------------------

---------------------------



12,386

12,490

26,453



-----------------------------

--------------------------------

---------------------------

Current assets

Trade and other receivables

8


233

399

214

Cash and cash equivalents

9


4,268

2,834

7,215



-----------------------------

--------------------------------

---------------------------



4,501

3,233

7,429



-----------------------------

--------------------------------

---------------------------










-----------------------------

--------------------------------

---------------------------

TOTAL ASSETS



16,887

15,723

33,882




================

=================

=================



SHAREHOLDER'S EQUITY

Called-up share capital 

11


1,088

1,107

1,666

Share premium



6,571

6,835

20,674

Equity reserve



735

951

1,254

Retained earnings



8,201

5,653

2,172

Translation reserve



40

547

1,898

Other reserves



-

506

5,657




-----------------------------

--------------------------------

---------------------------

TOTAL EQUITY



16,635

15,599

33,321

Minority interests



-

-

3




-----------------------------

--------------------------------

---------------------------

TOTAL EQUITY AND MINORITY INTERESTS



   16,635

15,599

33,324




================

====================

=====================



LIABILITIES






Current liabilities






Trade and other payables

10


252

124

558










-----------------------------

--------------------------------

---------------------------

TOTAL LIABILITIES


252

124

558


-----------------------------

--------------------------------

---------------------------




-----------------------------

--------------------------------

---------------------------

TOTAL EQUITY AND LIABILITIES


16,887

15,723

33,882



==================

===================

================


These interim financial statements were approved by the board of directors on ……………….. and are signed on its behalf by:





Mark Hohnen

Chairman


KALAHARI MINERALS PLC
 
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
 
PERIOD FROM 1 JANUARY 2008 TO 30 JUNE 2008

 

 

 
Unaudited
period from
Audited
period from
Unaudited
period from
 
1 Jan 07 to
1 Jan 07 to
1 Jan 08 to
Notes
30 Jun 07
31 Dec 07
30 Jun 08
 
£’000
£’000
£’000
 
Cash used in operations 
1
 
(1,644)
(2,937)
(2,703)
 
 
 
-------------------------------------------
--------------------------------
-----------------------------------------
 
Cash flows from investing activities
Bank interest receivable
 
117
208
167
Purchase of intangible fixed assets
 
(36)
(42)
(52)
Purchase of property, plant and equipment
 
(28)
(268)
(48)
Purchase of goodwill
 
-
-
(7,381)
Proceeds from disposal of intangible fixed assets
 
30
-
-
Proceeds from disposal of tangible fixed assets
 
-
21
-
Proceeds on sale of joint venture assets
 
260
-
-
 
 
-------------------------------------------
--------------------------------------------
-----------------------------------------
Net cash used in investing activities
343
(81)
(7,314)
 
 
 
 
 
 
 
 
 
-------------------------------------------
--------------------------------------------
-----------------------------------------
 
Cash flows from financing activities
Proceeds from issue of share capital
 
745
1,028
14,398
 
 
-------------------------------------------
--------------------------------------------
-----------------------------------------
Net cash from financing activities
 
745
1,028
14,398
 
 
 
 
-------------------------------------------
--------------------------------------------
-----------------------------------------
Net (decrease)/ increase in cash and cash equivalents
 
 
(556)
(1,990)
4,381
Cash and cash equivalents brought forward
 
 
4,824
4,824
2,834
 
 
 
--------------------------------------------
--------------------------------------------
--------------------------------------------
Cash and cash equivalents carried forward
 
2
4,268
2,834
7,215

 

KALAHARI MINERALS PLC
 
NOTES TO THE CONDENSED CONSOLIDATED CASH FLOW STATEMENT
 
PERIOD FROM 1 JANUARY 2008 TO 30 JUNE 2008


 



1.    Reconciliation of operating loss to

    cash used in operations



Unaudited

period from

Audited

period from

Unaudited

period from


1 Jan 07 to

1 Jan 07 to

1 Jan 08 to


30 Jun 07

31 Dec 07

30 Jun 08


£'000

£'000

£'000


Operating loss

(1,798)

(3,648)

(2,501)

Profit on sale of joint venture interest

(260)

-

  -  

Depreciation

12

25

14

Amortisation

1

10

11

Foreign exchange differences

(13)

493

1,351

Discontinued operations

-

260

(80)

Equity settled share based payment transactions

464


679

303

Movement in debtors

118

(48)

185

Movement in non-current assets held for sale 

-

40

-

Movement in creditors

107

(20)

434

Investment in associated undertakings

(275)

(11,974)

(6,507)

Share of results in associated undertakings

-

10,740

(1,067)

Share of equity recognised in associate undertakings

-


506

5,151

Minority interests

-

-

3



-----------------------------

-------------------------------

----------------------------

Cash used in operations

(1,644)

(2,937)

(2,703)


=================

===================

===============


2.    Cash and cash equivalents


The amounts disclosed in the cash flow statement in respect of cash and cash equivalents are in respect of balance sheet amounts:




 
Unaudited
Audited
Unaudited
 
30 Jun 07
31 Dec 07
30 Jun 08
 
£’000
£’000
£’000
 

 
Cash at bank
 
 
4,268
      2,834   
       7,215
 
======================
======================
======================
 


 
KALAHARI MINERALS PLC
 
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL
INFORMATION
 
PERIOD FROM 1 JANUARY 2008 TO 30 JUNE 2008

 


1.    Basis of preparation


    The condensed consolidated financial statements are prepared in accordance with International Financial Reporting Standard 34, Interim Financial Reporting and the historical cost convention.


    The accounting policies adopted are consistent with those followed in the preparation of the Group's annual financial statements for the year ended 31 December 2007.


    

2.    Operating loss


    The operating loss is stated after charging:


Unaudited

period from

Audited

period from

Unaudited

period from


1 Jan 07 to

1 Jan 07 to

1 Jan 08 to


30 Jun 07

31 Dec 07

30 Jun 08


£'000

£'000

£'000

Depreciation of tangible fixed assets

12

25

14

Amortisation of exploration licences

2

10

11

Parent auditors' remuneration:




 - audit services 

-

12

-

 - non-audit services

5

5

7

Subsidiary auditors' remuneration:




 - audit services 

9

12

-

 - non-audit services

-

-

2

Foreign exchange differences

-

94

258

Equity settled share based payment transactions

464

679

303

Reverse of bad debt provision for investment in associated undertaking

-

-

(248)


=================

=================

===============



3.    Segmental reporting


Based on risks and returns the directors consider that the primary reporting format is by business segment. The directors consider that there is only one business segment being minerals exploration and development. Therefore the disclosures for the primary segment have already been given in these financial statements.


The secondary reporting format is by geographical segment. As the company has no turnover, segment reporting is only required by business segment.


Disclosures relating to segmental information required to be disclosed in accordance with IFRS 8 'Operating Segments' do not need to be disclosed in these condensed consolidated interim financial information as IFRS 8 is effective for financial statements beginning on or after 1 January 2009.


KALAHARI MINERALS PLC
 
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL
INFORMATION
 
PERIOD FROM 1 JANUARY 2008 TO 30 JUNE 2008



4.    Intangible fixed assets



Exploration and evaluation


Exploration licences

 Options



Totals


£'000

£'000

£'000

£'000

    Cost

At 1 January 2007

120

8

-

128

Additions

-

-

36

36


------------------------------

 

------------------------------

-----------------------

At 30 June 2007 (Unaudited)

120

8

36

164


==================

================

===============

==============






Additions

-

4

-

4


------------------------------

---------------------------

------------------------------
 

------------------------------

At 31 December 2007 (Audited)

120

12

36

168


===============

================

=================

================






Additions 

-

1

51

52


------------------------------

---------------------------

------------------------------ 

------------------------

At 30 June 2008 (Unaudited)

120

13

87

220


=================

=================

================

=================


    Amortisation

At 1 January 2007

-

  7

-

7

Charge for period

-

1

-

1


------------------------------

---------------------------

------------------------------

------------------------------

At 30 June 2007 (Unaudited)

-

8

 -

8


==================

===============

==============

============






Charge for period

-

1

6

7


------------------------------

---------------------------

----------------------

----------------------------

At 31 December 2007 (Audited)

-

9

6

15


=================

================

============

=============






Charge for the period 

-

1

10

11


------------------------------

---------------------------

------------------------------

-----------------------

At 30 June 2008 (Unaudited)

-

10

16

26


==============

==============

================

===============


    Net book value

At 30 June 2008 (Unaudited)

120

3

71

194


===================

=================

==================

===================

At 31 December 2007 (Audited)

120

3

30

153


==================

================

==================

==================

At 30 June 2007 (Unaudited)

120

-

36

156


====================

=================

==================

====================


KALAHARI MINERALS PLC
 
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL
INFORMATION
 
PERIOD FROM 1 JANUARY 2008 TO 30 JUNE 2008




5.    Property, plant and equipment



Freehold property

Plant and machinery

Office

equipment

Motor

vehicles

Totals


£'000

£'000

£'000

£'000

£'000


    Cost

At 1 January 2007

-

58

26

81

165

Additions

-

9

3

16

28

Disposals

-

(32)

(1)

-

(33)


------------------------

------------------------

----------------------------

------------------------

-------------------

At 30 June 2007 (Unaudited)

-

35

28

97

160


==============

===========

================

=============

=============







Additions

231

1

16

    3

251


------------------------

------------------------

----------------------------

------------------------

 

At 31 December 2007 (Audited)

231

36

44

    100

411


===============

===============

================

===============

============







Additions 

-

10

4

    34

48


------------------------

------------------------

----------------------------

------------------------

-------------------

 

At 30 June 2008 (Unaudited)

231

46

48

    134

459


================

==============

===============

=============

==============


    Depreciation

At 1 January 2007

-

7

11

6

24

Charge for period

-

3

3

6

12

Disposals

-

(4)

-

-

(4)


------------------------

------------------------

---------------------------

------------------------

-------------------

At 30 June 2007 (Unaudited)

-

6

14

12

32


===============

================

===============

==============

===========







Charge for period

1

5

1

9

16


------------------------

------------------------

---------------------------

------------------------

-------------------

At 31 December 2007 (Audited)

1

11

15

21

48


==============

=================

================

===========

============







Charge for the period 

1

4

4

    5

14


------------------------

------------------------

------------------------ 


------------------------ 

-------------------
 

At 30 June 2008 (Unaudited)

2

15

19

    26

62


===============

=================

==============

=============

================


    Net book value

At 30 June 2008 (Unaudited)

229

31

29

108

397


===============

===============

==============

===============

================

At 31 December 2007 (Audited)

230

25

29

79

363


==============

================

============

===============

===========

At 30 June 2007 (Unaudited)

-

29

14

85

128


==================

================

===============

==========

================


KALAHARI MINERALS PLC
 
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL
INFORMATION
 
PERIOD FROM 1 JANUARY 2008 TO 30 JUNE 2008


 

6.      Investment in associates


Kalahari Minerals Plc has the following significant investments in associated companies which are accounted for using the equity method.



Unaudited

30 Jun 07

Audited

31 Dec 07

Unaudited

30 Jun 08


£'000

£'000

£'000


Extract Resources Limited

12,088

11,974

18,481

Craton Diamonds Limited

14

-

-


-----------------------------

-------------------------------

----------------------------


12,102

11,974

18,481


===============

=================

=============


 

7.   Goodwill


Goodwill related to the increase in the equity holding of Extract Resources Limited from 36% to 39.04% and the business combination of Craton Diamonds Limited (see note 12) as follows:





Unaudited

30 Jun 08




£'000


Extract Resources Limited



7,191

Craton Diamonds Limited



190




----------------------------




7,381




================


 

8.    Trade and other receivables


Unaudited

30 Jun 07

Audited

31 Dec 07

Unaudited

30 Jun 08


£'000

£'000

£'000


Trade debtors

-

-

9

Other debtors

233

399

205


-----------------------------

-------------------------------

----------------------------


233

399

214


================

================

==============


    

9.  Cash and Cash Equivalents



£'000

£'000

£'000


Cash at bank and in hand

4,268

2,834

7,215


================

=============

===========


KALAHARI MINERALS PLC
 
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL
INFORMATION
 
PERIOD FROM 1 JANUARY 2008 TO 30 JUNE 2008




10.    Current liabilities



Unaudited

30 Jun 07

Audited

31 Dec 07

Unaudited

30 Jun 08


£'000

£'000

£'000


Trade payables

209

47

166

Other creditors

43

77

392


-----------------------------

-------------------------------

----------------------------


252

124

558


================

==================

================


11.    Called up share capital


    

Nominal

value

Number

'000

£

'000


    Authorised share capital:

At 30 June 2007 (Unaudited)





Ordinary

£0.01

1,000,000

10,000




  ================

===========



At 31 December 2007 (Audited)





Ordinary

£0.01

1,000,000

10,000




===============

===============


    

At 30 June 2008 (Unaudited)





Ordinary

£0.01

1,000,000

10,000




================

=============



    Called up, allotted and fully paid:

At 30 June 2007 (Unaudited)





Ordinary

£0.01

108,844

1,088




=================

===============



At 31 December 2007 (Audited)





Ordinary

£0.01

110,730

1,107




====================

=============


At 30 June 2008 (Unaudited)





Ordinary

£0.01

166,600

1,666




===================

=================




At 31 December 2007 the company had issued 9,750,000 options at an exercise price of £0.08 per share. These options were exercised in the six month period ended 30 June 2008.


At 31 December 2007 the company had issued 4,550,000 options at an exercise price of £0.30 per share. Of these options 625,000 have been forfeited through resignation. Of the remaining options 3,000,000 must be exercised by 30 October 2012 and 925,000 options must be exercised by 1 November 2010.


On 18 June 2008 the company issued 3,625,000 options at an exercise price of £0.40 which must be exercised by 18 June 2013.



KALAHARI MINERALS PLC
 
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL
INFORMATION
 
PERIOD FROM 1 JANUARY 2008 TO 30 JUNE 2008




12.    Business combinations


    The condensed consolidated interim financial information includes the following group companies:

    

    Company                                                                        Incorporated in                        Holding

    Kalahari Uranium Limited                                                (Isle of Man)                                 100%

    West Africa Gold Exploration (Namibia) (Pty) Limited      (Namibia)                                     100%

    Kalahari Energy (Namibia) (Pty) Limited                          (Namibia)                                     100%

    Craton Diamonds Limited                                                 (Namibia)                                    90%


    Craton Diamonds Limited was an associated undertaking until the company increased its shareholding to 90% on 30 June 2008. The shareholding increase in Craton Diamonds Limited from 25% to 90% cost the company £270,318 for the issue of the new shares.


    The assets and liabilities acquired on 30 June 2008 are as follows:

    

    




30 Jun 08




£'000


Current assets:




Trade and other receivables



74




=================

    


Called-up share capital



270

Shareholders contribution



3

Retained earnings



(233)




----------------------------

Total Equity



40





Liabilities:




Trade and other payables



34




----------------------------

Total Equity and Liabilities



74




================



    Goodwill (senote 7) of £189,892 was paid on the acquisition of Craton Diamonds Limited.


    There are no results included in the income statement from the activities of Craton Diamonds Limited as the business combination occurred on 30 June 2008.


13.    Post balance sheet events


    A material restructuring of the company is proposed and an AIM admission document is expected to be published in October 2008. Further details are available on the company's website, www.kalahari-minerals.com 



This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
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