Greatland Gold plc
Final audited results for the year ended 30 June 2009
Greatland Gold plc ("Greatland" or the "Company") the mineral
exploration and development company focused on gold projects in
Tasmania and Western Australia announced today its final audited
results for the period ended 30 June 2009.
Chairman's Statement
Dear Shareholders
We can be proud of our achievements in the 12 months to 30 June 2009,
during what was a tumultuous period for businesses and the world
economy.
Throughout this challenging period for AIM listed junior explorers,
we have been faithful to our objectives by improving our
understanding of our properties, adding new licence interests and
positioning Greatland to take advantage of new opportunities.
There has been a significant change of activity level in both new
investment additions and work on the ground. Greatland expanded its
licence interests from three to five whilst adding significant
acreage to its Firetower licence. The Company has accelerated its
operational activities, completing soil sampling at both Warrentinna
and Firetower and identifying key targets in preparation for drill
programmes that will commence later in 2009.
Our extensive preparatory work at both Warrentinna and Firetower has
worked well in sorting the strong prospects from the weak ones. We
are pursuing a drill programme at Anomaly 1 after strong results.
Following the grant of the Lackman Rock licence a sampling programme
is planned in an area that has seen no previous precious metal
exploration. A similar programme is planned at the East Lisle
licence which was acquired in August 2008.
Post the accounting period the team have added an exciting new
property at Ernest Giles that presents both considerable
opportunities and challenges. I am confident the very strong
geological features of this prospect could add value to the Greatland
portfolio in Western Australia. I look forward to the team starting
operations at Ernest Giles during the next 12 months.
Broadly, at the end of June 2009 our focus shifted to drilling
programmes on our best targets at Firetower and Warrentinna. We also
plan further preparatory work at Lackman Rock and Ernest Giles, which
will mark a formal start to survey work on the ground in Western
Australia.
Throughout the financial year, we have ensured Greatland is
adequately capitalised and that shareholders are not running the risk
of the Company suddenly being caught short of funds at a time when
raising finance remains challenging. I believe that many AIM
companies went into this financial crisis with the premise that
shareholders could be tapped indefinitely and funding would always be
available. The reality has proved otherwise. As such we have always
been careful not to take on commitments that are beyond the Company's
means as well as maintaining our customary budgetary discipline.
The board is convinced of our policy of the careful application of
capital towards our portfolio is a prerequisite in these times.
Greatland continues to hold significant cash relative to our market
capitalisation. The fact the board was also able raise funds in May
2009 is an important endorsement by investors of our approach.
During the 2009 financial year Greatland Gold placed 43,000,000
ordinary shares raising £301,000 before expenses. At the end of June
2009 Greatland Gold had 239,550,000 ordinary shares with 6,000,000
options outstanding. Our current cash levels provide funding for
foreseeable expenses throughout 2010.
Outlook
The Directors believe Greatland's portfolio combines near surface and
deeper prospects with attractive geological features in safe
locations. The portfolio, in whole or in part, is likely to attract
interested parties looking for joint venture or acquisition
opportunities. Because some of our licences will naturally cost more
to explore than others, the board is pursuing talks with interested
third parties with a view to one or more collaborations on attractive
terms for Greatland. Although the timing of concluding such deals
remains uncertain, it is our view that an improving financial climate
and higher gold price will possibly act as a catalyst for joint
venture developments over the remainder of 2009 and 2010.
Closing remarks
I would express my sincere gratitude to our staff and shareholders.
We will continue to provide timely updates as appropriate to the AIM
market and on our website. We also take this opportunity to thank our
professional advisors for their work.
Andrew R. McM. Bell
Chairman
26 October 2009
Managing Director's Review of Operations
In the year to end June 2009 Greatland Gold plc ('Greatland' or 'the
Company') made considerable progress in pursuit of its strategy to
acquire, explore and develop gold prospective properties in Tasmania
and Western Australia. We are now in a position to commence drilling
activities at Firetower and Warrentinna in 2009.
It has proved a busy year for Greatland on the acquisition front. We
have acquired new licence interests at East Lisle in Tasmania, and in
Western Australia we have secured the Lackman Rock, and Ernest Giles
properties.
The board extended the existing Firetower licence adding new acreage
at Beulah where we see potential for adding significant gold
resources to our existing JORC inferred gold resource. The Firetower
project area now covers 265km�. We commenced drilling at Firetower in
September 2009.
Overall our approach is to obtain a clear definition and
understanding of our properties to ensure that when we undertake the
costs and risks of drilling, that we do so with the best possible
odds of success.
The Company's portfolio consists of a significant "pipeline" of
carefully sourced projects, safely located in Australia which
certainly on paper hold out the prospect of strong geological
fundamentals for precious metal exploration. We are eager to get to
work on these, on our own if necessary, but preferably in
collaboration with local explorers or similar investment entities in
London.
The Company currently owns five mineral projects comprising ten
mineral licences all located in Australia, the details are tabulated
below.
PROJECT / Licence Size Expiry Remarks on 2009 Progress
(sq kms)
FIRETOWER
Firetower 33 26 Nov 2009* Soil Sampling and Diamond
Drilling
Firetower East 29 26 Nov 2009* Soil Sampling and Mapping
Quamby 98 21 Sep 2012 Review of Exploration Data
Beulah 105 23 Jun 2014 Review of Exploration Data
WARRENTINNA
Warrentinna 114 26 Nov 2009* Soil Sampling and RC Drilling
Southern Cross 53 19 Dec 2012 Soil Sampling and Mapping
LISLE
East Lisle 233 13 Jan 2014 Field Reconnaissance Q3 2009
LACKMAN ROCK
Lackman Rock 202 2 Jul 2014 Field Reconnaissance Q4 2009
ERNEST GILES
Peterswald Hill 341 13 May 2014 Field Reconnaissance Q4 2009
Calanchini Hill 346 13 May 2014 Field Reconnaissance Q4 2009
* application for 12 month extension of term of licence to be lodged
October 2009
Exploration activities during the period were ongoing at both
Firetower and Warrentinna. The Company found anomalous levels of gold
mineralisation up to 916ppb in soil samples at Firetower alongside an
outstanding result at Warrentinna finding gold mineralisation up to
20.75g/t at Derby North.
By late summer our planned drilling activities were delayed for by
heavy rains in Tasmania. Drilling operations commenced at Firetower
in September 2009, and are expected to commence at Warrentinna in
November 2009 weather permitting.
Our efforts during the period have been aimed at completing
sufficient preparatory work in the right places so that we can
deliver only the best targets to the next phase, ie drilling
operations.
The short term objective of our drilling plan is to evaluate options
for an open pit operation at Warrentinna whilst adding to our gold
mineralised prospects at Firetower in the hope of proving up a
deposit of sufficient size to attract a larger partner. We also plan
to commence ground operations at East Lisle and in Western Australia
at Lackman Rock and Ernest Giles.
The return of the gold price to US$1,000 per ounce levels last seen
in March 2008 is welcome. Gold is perceived as an inflationary hedge
and, in addition, the price appears to be supported by strong
consumer demand.
Despite the challenging investment climate the board secured £301,000
via an equity placing in May 2009. We took the decision to raise new
equity ahead of the drilling programmes which will substantially
increase Greatland's operating expenses over the next two financial
periods, to end June 2010 and end June 2011.
We are proud to have positioned Greatland Gold with sufficient cash,
at the period end of £1.7 million for our foreseeable expenditure
over the forthcoming year and beyond. The recent revival in our share
price is, we feel, a credible endorsement of our approach towards our
well positioned and attractive licence portfolio. We hope the drill
results will confirm significant mineralisation that, with further
work, could add inferred resources of gold.
The board contains a talented team with a diverse skill set that will
serve Greatland well through to the end of 2010.
I would like to also note, and say a special thank you for the keen
interest and support you have shown as shareholders. Please find
regular updates on our website and we look forward to hearing from
you.
Callum N Baxter
Managing Director
26 October 2009
Results and dividends
The Group's results are described in the Consolidated Income
Statement below, extracted from the audited financial statements for
the year ended 30 June 2009.
The Group has incurred a loss for the year of £356,103
(2008: £451,475).
The Directors do not recommend the payment of a dividend.
Consolidated income statement
For the year ended 30 June 2009
Year ended Year ended
30 June 2009 30 June 2008
£ £
Revenue - -
Exploration costs (192,422) (326,806)
Administrative expenses (201,958) (210,725)
Currency (loss)/profit (225) 1,613
Operating loss (394,605) (535,918)
Interest receivable 38,502 84,443
Loss from continuing operations (356,103) (451,475)
Income tax expense - -
Retained loss for the period (356,103) (451,475)
Attributable to: (356,103) (451,475)
Equity holders of the parent
Loss per share - basic and diluted (0.18) pence (0.23) pence
All operations are considered to be continuing.
Consolidated statement of recognised income and expense
For the year ended 30 June 2009
Year ended Year ended
30 June 2009 30 June 2008
£ £
Loss on revaluation of available for (62,475) (26,936)
sale financial investments
Unrealised foreign currency gains 15,372 46,546
Income and expense recognised directly (47,103) 19,610
in equity
Loss for the financial period (356,103) (451,475)
Total recognised income and expense for (403,206) (431,865)
the financial period
Attributable to:
Equity holders of the parent (403,206) (431,865)
Consolidated balance sheet
As at 30 June 2009
30 June 2009 30 June 2008
£ £ £ £
ASSETS
Non-current assets
Tangible assets 4,749 6,265
Intangible assets 525,372 493,016
530,121 499,281
Current assets
Cash and cash 1,779,720 1,866,289
equivalents 50,073 64,394
Trade and other 34,709 96,147
receivables
Available for sale
financial assets
Total current assets 1,864,502 2,026,830
TOTAL ASSETS 2,394,623 2,526,111
LIABILITIES
Current liabilities
Trade and other (83,750) (97,982)
payables
TOTAL LIABILITIES (83,750) (97,982)
NET ASSETS 2,310,873 2,428,129
EQUITY
Called-up share capital 239,550 196,550
Share premium reserve 3,198,471 2,955,521
Share based payment 74,443 74,443
reserve (1,396,516) (1,040,413)
Retained earnings
Other reserves 194,925 242,028
TOTAL EQUITY 2,310,873 2,428,129
Consolidated statement of changes in equity
For the year ended 30 June 2009
Share Share Share Retained Other Total
capital premium based earnings reserves
account payment
reserve
£ £ £ £ £ £
As at 30 146,550 1,936,771 74,443 (588,938) 222,418 1,791,244
June 2007
Changes in
equity for
2008
Share 50,000 1,075,000 - - - 1,125,000
capital
issued
Cost of - (56,250) - - - (56,250)
share
issue
Loss for - - - (451,475) - (451,475)
the period
Net - - - - (26,936) (26,936)
unrealised
losses
recognised
directly
to equity
Unrealised - - - - 46,546 46,546
foreign
currency
gains
As at 30 196,550 2,955,521 74,443 (1,040,413) 242,028 2,428,129
June 2008
Share 43,000 258,000 - - - 301,000
capital
issued
Cost of - (15,050) - - - (15,050)
share
issue
Loss for - - - (356,103) - (356,103)
the period
Net - - - - (62,475) (62,475)
unrealised
losses
recognised
directly
to equity
Unrealised - - - - 15,372 15,372
foreign
currency
gains
As at 30 239,550 3,198,471 74,443 (1,396,516) 194,925 2,310,873
June 2009
Other reserves Merger Foreign Available for Total
reserve currency sale other
translation financial reserves
reserve assets
reserve
£ £ £ £
As at 30 June 2007 225,000 13,444 (16,026) 222,418
Available for sale - - (26,936) (26,936)
investments - valuation
losses taken to equity
Unrealised foreign - 46,546 - 46,546
currency gains
As at 30 June 2008 225,000 59,990 (42,962) 242,028
Available for sale - - (62,475) (62,475)
investments - valuation
losses taken to equity
Unrealised foreign - 15,372 - 15,372
currency gains
As at 30 June 2009 225,000 75,362 (105,437) 194,925
Company balance sheet
As at 30 June 2009
30 June 2009 30 June 2008
£ £ £ £
ASSETS
Non-current assets
Investment in subsidiary 250,000 250,000
Current assets
Cash and cash equivalents 1,749,393 1,815,569
Trade and other receivables 1,033,248 876,987
Total Current Assets 2,782,641 2,692,556
TOTAL ASSETS 3,032,641 2,942,556
LIABILITIES
Current Liabilities
Trade and other payables (74,266) (58,679)
TOTAL LIABILITIES (74,266) (58,679)
NET ASSETS 2,958,375 2,883,877
EQUITY
Called-up share capital 239,550 196,550
Share premium reserve 3,198,471 2,955,521
Share based payment reserve 74,443 74,443
Merger reserve 225,000 225,000
Retained earnings (779,089) (567,637)
TOTAL EQUITY 2,958,375 2,883,877
Company statement of changes in equity
For the year ended 30 June 2009
Called Share Share based Retained Merger Total
up share premium payment earnings reserve
capital account reserve
£ £ £ £ £ £
As at 30 146,550 1,936,771 74,443 (358,909) 225,000 2,023,855
June 2007
Share 50,000 1,075,000 - - - 1,125,000
capital
issued
Cost of - (56,250) - - - (56,250)
share
issue
Loss for - - - (208,728) - (208,728)
the year
Share - - - - - -
based
payments
As at 30 196,550 2,955,521 74,443 (567,637) 225,000 2,883,877
June 2008
Share 43,000 258,000 - - - 301,000
capital
issued
Cost of - (15,050) - - - (15,050)
share
issue
Loss for - - - (211,452) - (211,452)
the year
Share - - - - - -
based
payments
As at 30 239,550 3,198,471 74,443 (779,089) 225,000 2,958,375
June 2009
Consolidated cash flow statement
For the year ended 30 June 2009
Year ended Year ended
30 June 2009 30 June 2008
£ £
Cash flows from operating activities
Operating loss (394,605) (535,918)
Decrease/(increase) in debtors 14,321 (3,412)
(Decrease)/increase in creditors (14,232) 9,878
Depreciation 1,913 2,657
Share based payments - -
Currency adjustments 225 (1,613)
Net cash outflow from operations (392,378) (528,408)
Cash flows from investing activities
Interest received 38,502 84,443
Payments to acquire intangible assets (28,922) (3,944)
Payments to acquire tangible assets (409) (718)
Payments to acquire available for sale - -
financial assets
Net cash flows used in investing 9,171 79,781
activities
Cash inflows from financing activities
Proceeds from issue of shares 301,000 1,125,000
Transaction costs of issue of shares (15,050) (56,250)
Net cash flows from financing 285,950 1,068,750
activities
Net increase/(decrease) in cash and (97,257) 620,123
cash equivalents
Cash and cash equivalents at the 1,866,289 1,241,211
beginning of period
Exchange gain on cash and cash 10,688 4,955
equivalents
Cash and cash equivalents at end of 1,779,720 1,866,289
period
Company cash flow statement
For the year ended 30 June 2009
Year ended Year ended
30 June 2009 30 June 2008
£ £
Cash flows from operating activities
Operating loss (248,991) (291,877)
Decrease/(increase) in debtors 10,415 (48,811)
Increase/(decrease) in creditors 15,587 (1,381)
Net cash outflow from operations (222,989) (342,069)
Cash flows from investing activities
Interest received 37,539 83,149
Loans to subsidiary (166,676) (190,534)
Net cash flows used in investing (129,137) (107,385)
activities
Cash inflows from financing activities
Proceeds from issue of shares 301,000 1,125,000
Transaction costs of issue of shares (15,050) (56,250)
Net cash flows from financing 285,950 1,068,750
activities
Net (decrease)/increase in cash and (66,176) 619,296
cash equivalents
Cash and cash equivalents at the 1,815,569 1,196,273
beginning of period
Cash and cash equivalents at end of 1,749,393 1,815,569
period
Notes to the Financial Statements for the period ended 30 June 2009
1. The Directors are not recommending the payment of an ordinary
share dividend.
2. Loss per share is calculated on a loss on ordinary activities
after taxation of £356,103 (2008: Loss £451,475) and on 201,262,239
ordinary shares (2008: 193,262,329) being the weighted average number
of shares in issue and ranking for dividend during the period. No
diluted loss per share is presented as the effect of exercise of
outstanding options is to decrease the loss per share.
3. The financial information set out in this final results
announcement does not constitute statutory accounts as defined in the
Companies Act 2006. Results for the year ended 30 June 2009 are
abridged from the 2009 Annual Report and Accounts, which received an
unqualified auditor's report and will be filed with the Registrar of
Companies following the Annual General Meeting.
4. The Annual Report will be posted to shareholders on Friday 6th
November 2009. Further copies will be available from the Company's
registered office: 3rd Floor, 55 Gower Street, London WC1E 6HQ for
one month from that date or from the Company's website
www.greatlandgold.com.
5. The Annual General Meeting of the Company will be held at the
Company's offices at 115 Eastbourne Mews, Paddington, London W2 6LQ,
on Wednesday 2nd December 2009 at 11am.
Enquiries:
Callum Baxter +44 (0)20 Greatland Gold plc Managing
7099 5845 Director
Gerry Beaney or +44 (0)20 Grant Thornton Corporate Nominated
Colin Aaronson 7383 5100 Finance Adviser
Updates on the Company's activities are regularly posted on its
website www.greatlandgold.com
End
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