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Golden Prospect PLC (AMBR)

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Tuesday 18 June, 2002

Golden Prospect PLC

Final Results

Golden Prospect PLC
18 June 2002



                              GOLDEN PROSPECT PLC

                           REGISTERED NUMBER: 3172986

                               FINAL ANNOUNCEMENT

                      FOR  THE YEAR ENDED 31 DECEMBER 2001



                                GOLDEN PROSPECT PLC

                                CHAIRMAN'S STATEMENT


The directors are pleased to report that for the year ended 31 December 2001 the
company returned a pre-tax profit of £274,152 compared with a loss in the
previous year of £1,439,023 (which mainly reflected a write-down in exploration
assets). Operating expenses were again kept to a minimum.

The company's policy remains the pursuit of net asset accretion rather than
annual taxable trading profits, and it is encouraging to note that the unaudited
management accounts show that at 31 May 2002 the market value of the company's
investment portfolio and cash resources was circa £20,600,000 excluding
exploration assets (equivalent to 23p per share).

The resurgence in the mining and resources sector of the market has clearly
impacted very favourably on the company's strategic holdings.  These include
Periliya (19%), Equigold (7%) and Centamin Egypt (6%) - while solid gains are
also evident in Metex Resources (13%), Uruguay Minerals Exploration (7%) and
other smaller investment positions.  By way of further information, significant
projects are under negotiation for Samson Exploration, (30%), Geographe
Resources (31%) and Sapphire Mines (24%).


Exploration Assets

The Ethiopian Platinum project, under advice from Dr John Bowles of Mineral
Science Limited, continues to provide great optimism for future value creation.
Following additional workings, professional estimates now indicate a substantial
open cut resource which means a partner will be needed. Discussions are
therefore taking place with both major and junior parties in order to reach the
most favourable of terms.

Equally encouraging is the continuing progress to restoration of normal
conditions in Sierra Leone which has meant the return of most of the
international mining companies to their operations.  Golden Prospect continues
to hold highly prospective gold exploration assets at Lake Sonfon and these will
be reactivated via a 50/50 joint venture with Mano River Resources Inc, who have
adjoining properties and are highly experienced in West Africa. Full details of
the exploration activity are within the exploration review.

As recently announced, the company has acquired a one-third interest in the
Resource Development Corporation Limited ('RDC'), which has highly prospective
platinum assets in Canada and South Africa.   RDC is subject to a near term
initial public offering (as Jubilee Platinum Plc) and a London based
stockbroking firm has agreed to act in a proposed flotation which is designed to
fund and support an exciting exploration programme in these prime areas.

The company is anticipating a significant schedule of activity over the next few
months and it is pleasing to note the increased liquidity in the company's
shares reflecting growing investor interest.  AIM statistics record activity in
the company's shares as among the highest on AIM over recent months.


Gold

When I reported to you this time last year, I wrote that a 'bottoming-out' of
the gold market would be in the short-term and that the signs were already
pointing to future weakness in the US dollar.  Sentiment, I stated, was
significantly changing among the larger investors and that the weight of funds
would start playing the market actively and generally on the long side.  The
Gold/Dow Jones cycle was at last beginning to turn in bullion's favour.  As I
report today so much is currently being written about the resurgence of gold and
mining shares, plus a myriad of comments regularly posted over the internet that
the pundits in general are in danger of getting ahead of themselves.  Most
shareholders will have taken in the plethora of news and feature comment on the
recovery in the bullion price, but a summary is always useful .

Beneath the recovery in bullion as a renewed asset class lie a number of factors
all combining to sustain the current bullish sentiment.    On the fundamental
side the biggest shift to the long argument continues to be the steady weakening
in the US Dollar, the heightened geo-political situation with all the tensions
apparent in the Middle East and Asia and the deterioration in the US financial
markets, both economically and corporately (i.e. Enron and Wall Street
scandals).  Safe haven investors have turned away from the Dollar and the
securities market and found refuge once more in the yellow metal, fulfilling its
traditional role as the only real store of wealth in extremely uncertain times.
The Japanese banking insolvencies triggering investor demand in gold plus the
Argentine and other Sovereign debt crises have aggravated matters further and
the volatile oil price, ultimately inflationary, has added a significant
ingredient.

The overwhelming technical factors are supporting these fundamentals. Falling
interest rates have removed the incentive to short gold, which is squeezing this
specialised end of the derivatives market.  Demand is rising at a time when
production has flattened out and the deficit usually filled by Central Bank
selling has dropped sharply and gold lease rates have dwindled as bullion bank
margins have been badly squeezed.  The decision by prominent gold producers to
cut their forward sales programmes (i.e. their usual hedging strategies) and
allow production prices to float with the market has also provided support.

Gold and the US dollar have a counter-cyclical relationship: Dollar strong, Gold
down; Dollar weak,  Gold up.  Bullion is finally getting revenge as dollar bears
in the Forex markets are scenting blood.  This is not just a fire drill, it is a
real alarm.

If gold prices rise high enough, producers will be forced to buy back hedged
positions which will be positive for long-term supply-demand fundamentals.

Moreover, there has been very little investment in reserve replenishment or
exploration since 1997.  But a steadily rising gold price will address that and
in expectation of a bull market,  some of the world's dormant lodes are being
retapped by the majors.

Finally, a World Gold Council's A$200m advertising and marketing campaign is
scheduled to educate us all of Gold's appeal as a vital 'insurance asset'
against geopolitical turmoil at the same time that China is throwing open its
Gold Exchange to the public.

From the investors' standpoint all the buying signals have been flashing.
Technical analysts have demonstrated how bullish the charts are on both bullion
and gold shares, which is why the increased activity in takeovers and mergers
has witnessed unusually high premiums being paid by the bidders for their
targets.  The momentum traders and those fund managers that must have exposure
to upward trends are realising how small the gold market is as an asset class.
The entire quoted value of worldwide gold shares is surprisingly low, relative
to other sectors.    Equity financings for new projects have been heavily
oversubscribed as investor sentiment has grown and the financial institutions
that have not followed the sector for some years are returning to the fold.  The
message is now loud and clear that gold is counter-cyclical i.e. investors
should buy it when financial assets elsewhere are out of favour.

Platinum prices also continue to forge ahead and as previously stated your
company has been active in increasing its exposure to this area.  Base metal
prices have also been encouraging although this sector does have more volatility
in spite of its defensive qualities.   Share values for the major base metal
producers worldwide have also enjoyed strong appreciation over the past few
months.


Investment Strategy

Your company's current investment strategy continues to be building core or
strategic holdings in junior producers which represent strong value opportunity.
Whereas our original 'vulture fund' or contrarian investment strategy worked
well in the previous bear market the job now is to identify specific situations
based on more detailed evaluation of fundamentals relevant to the junior
resources sector as a whole.  These are typically smaller exploration and mining
companies capitalised under £25million with a committed resources focus.  Our
selection criteria involves seeking companies where management is highly
experienced i.e. it boasts the strong track record required to produce success
of its exploration and mining programmes.    The focus is on quality assets and
valuable tenements that are likely to produce long-term growth.


What of the future?  Will the positive trend continue?  Listening to the gold
bugs and the so-called experts can be a dangerous pastime.  Following the money
is less risky and the money is betting on gold going much higher.     As long as
financial assets, particularly the dollar continue to decline investors will
increasingly shift to gold.  This wave of 'insurance' against bad times can only
gather pace as increasing numbers of investors become aware of gold's invaluable
role.

Meanwhile, Golden Prospect has almost completed its plan to be a 100% investor
in quoted securities in the resource sector, by hiving down its remaining
exploration assets in exchange for equity positions.  Mano River Resources
listed on the AIM and Toronto markets is to finance and operate the company's
gold licences in Sierra Leone and in return Golden Prospect has acquired a 5.7%
shareholding in Mano to provide partial support for an exploration programme.

Similarly, the company's Ethiopian and other regional Platinum properties are to
be transferred to Resource Development Corporation, soon to be floated on AIM as
Jubilee Platinum (Golden Prospect retaining a circa 30% shareholding).

Prospects

New investments via share placements and other equity financings will continue
providing always that the valuations are acceptable, the projects highly
prospective and management motivated, experienced and incentivised.   To this
end, your company will clearly need additional funds to pursue its objective of
building a quality investment group, excelling in value criteria and
performance.  We expect to have further information for shareholders on our
future capital raising needs in the near future.

A full review of our exploration interests is provided elsewhere in this report
by Dr John Bowles of Mineral Science Limited.  Also within this report is a
brief overview of some of our exciting investee companies.

I look forward to reporting to you again next year on a very favourable note.


Malcolm Burne
Chairman

18 June 2002


                              GOLDEN PROSPECT PLC

                      CONSOLIDATED PROFIT AND LOSS ACCOUNT
                          Year ended 31 December 2001


                                                         2001            2000 
                                                            £               £ 
                                                                              
  Sales                                             1,912,861       4,042,119 
                                                                              
  Cost of sales                                   (1,615,729)     (3,952,178) 
                                                 ------------      ---------- 
  Gross profit                                        297,132          89,941 
                                                                              
  Other operating income - dividends received          77,011          50,626 
                                                                              
  Administrative expenses                           (197,845)       (176,007) 
                                                                              
  Exceptional Item - Provision for impairment                                 
  of exploration assets                                    -     (1,349,457)  
                                                                              
                                                 ------------    ------------ 
                                                    (197,845)     (1,525,464) 
                                                       ======         ======= 
                                                                              
  Operating profit/(loss) - continuing                176,298     (1,384,897) 
  operations                                                                  
                                                                              
                                                                              
  Loss on disposal of fixed asset investments               -        (32,208) 
  Provision against fixed asset investments                 -       (100,000) 
  Interest receivable                                  97,854          78,082 
                                                   ----------     ----------- 
  Profit/(loss) on ordinary activities before         274,152     (1,439,023) 
  taxation                                                                    
  Tax on profit/(loss) on ordinary activities        (30,000)               - 
                                                   ----------       --------- 
  Profit/(loss) for the financial period              244,152     (1,439,023) 
                                                       ======          ====== 
                                                                              
  Profit/(loss) per ordinary share - basic              0.28p         (2.10p) 
                                   - diluted            0.27p         (2.10p) 
                                                                              
 
                             GOLDEN PROSPECT PLC 
 
               CONSOLIDATED BALANCE SHEET AS AT 31 DECEMBER 2001 

                                                                              
                                   2001                            2000                 
                                                                              
                            £               £               £               £ 
                                                                              
  FIXED ASSETS                                                                
  Intangible                        
  assets                            2,751,711                       2,488,421                                           
  Tangible                              2,138                               - 
  fixed assets                                                                
  Investments                       3,716,270                       2,478,822 
                                   ----------                      ---------- 
                                    6,470,119                       4,967,243 
  CURRENT ASSETS                                                                    
  Debtors:                                                                    
  Amounts falling due                                                                 
  within one year      25,263                          29,596
  Investments       6,271,940                       6,098,245                 
  Cash at bank                       
  and in hand       1,799,284                       3,201,323                                                          
                  -----------                     -----------                 
                    8,096,487                       9,329,164                 

  CREDITORS: Amounts
  falling due 
  within one year    (59,619)                        (33,572)                                                         
                   ---------                      ----------                 
  NET CURRENT                        
  ASSETS                            8,036,868                       9,295,592                                          
                                   ----------                      ---------- 
  TOTAL ASSETS                                                                
  LESS CURRENT                                                                
  LIABILITIES                      14,506,987                      14,262,835 
                                   ==========                      ========== 
                                                                              
  CAPITAL AND RESERVES
  Called up                          
  share capital                     8,698,496                       8,698,496
  Share                             7,995,458                       7,995,458 
  premium account
  Profit and                       
  loss account                     (2,186,967)                     (2,431,119)                                          
                                   ----------                     ----------- 
  EQUITY SHAREHOLDERS'
  FUNDS                            14,506,987                      14,262,835                                           
                                   ==========                      ========== 
                                                                              

 
                                 GOLDEN PROSPECT PLC 
 
                         CONSOLIDATED CASH FLOW STATEMENT 
                            Year ended 31 December 2001 
       
                                      2001                          2000 
                                                                              
                                £              £              £             £ 
                                                                              
  Net cash outflow                                                            
  from operating                        
  activities                            (119,742)                    (311,414)                                       
                                                                              
  Returns on                                                                  
  investments and                                                             
  servicing of finance
  Interest                               
  receivable               97,854                        78,082                                                    
                       ----------                     ---------               
  Net cash inflow                                                             
  from returns on                                                             
  investment and                           
  servicing of finance                     97,854                       78,082                                    

  Taxation                                     -                            - 

  Capital                                                                     
  expenditure and                                                             
  financial                                                                   
  investment                                                                  
  Payments to                          
  acquire intangible 
  fixed assets           (263,290)                     (101,671)                                                      
  Payments to                            
  acquire tangible                                                            
  fixed assets             (2,850)                            -                                                    
  Payments to                                                                 
  acquire fixed                                                               
  asset investments       (81,932)                      (46,366)               
  Receipt from                                                                
  disposal of fixed                                                           
  asset investment               -                       259,424               
  Purchase of                        
  investments          (2,777,459)                   (2,151,383)                                                        
  Sale of                               
  Investments           1,912,860                    4,042,119                                                      
                      ------------                 ------------               
                                                                              
  Net cash                                                                    
  (outflow)/inflow                                                            
  from capital                        
  expenditure                         (1,212,671)                   2,012,123                                         
                                    ------------                  ----------- 
  Net cash                             
  (outflow)/inflow                                                            
  before financing                    (1,234,559)                   1,768,791                                        
                                                                              
  Financing                                                                   
  Issue of ordinary                           
  share capital                 -                       623,004                                               
  (net of issue       ------------                  -----------               
  expenses)                                                                   
                                                                              
  Net cash inflow                                                             
  from financing                               -                      623,004 
                                     -----------                  ----------- 
  (Decrease)/increase                  
  in cash                                                                   
  resources                           (1,234,559)                   2,391,795                                        
                                      ==========                    ========= 
 


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

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