Interim Results - 6 Months to 30 June 1999
BRANCOTE HOLDINGS PLC
28 October 1999
Contacts: Richard Prickett, Chairman
Brancote Holdings PLC 0207 493 1002
David Bick/Becky Jewers
Holborn Public Relations 0207 929 5599
becky_jewers@holbornpr.co.uk
BRANCOTE HOLDINGS PLC
Interim results for the six months to 30 June 1999
Chairman's Statement
The financial result for the period was greatly improved showing a small loss
of £27,966 (1998: (£321,847)) on turnover of £982,542 (1998: £1,168,562).
These results largely reflect the production income at the Mt. Cuthbert Copper
project which has continued satisfactorily during the period less
administrative expenses. These results do not portray the enormous progress
the Company has made during 1999 with its Esquel Gold exploration project in
Argentina.
The progress is summarised as follows:
* January 1999 - Appointment of Bill Humphries as managing director. Fully
subscribed rights issue at 10p per share to raise approximately £2.3 million
before expenses in order to fund an evaluation programme of the Esquel gold
project.
* March 1999 - Drilling commenced on schedule on the Galadriel vein, a
prominent quartz vein structure centred in the highly prospective Cordon de
Esquel epithermal gold/silver system.
* April 1999 - Initial drilling results confirmed expectations. All holes
at this stage, with the exception of two orientation holes, intersected the
structure with an average width of mineralisation up to ten metres, with the
grades ranging from 2.51 g/t gold up to 28.9 g/t gold.
* June 1999 - Galdriel drill results were very encouraging, including
bonanza grades of gold between 3 and 8 ounces per tonne.
Metallurgical test work showed good gold recoveries averaging in excess of
90 per cent. within 24 hours active leach.
New discoveries were made of veins to the west and north of current target
areas containing high grade gold.
* July 1999 - acquisition of 10 per cent. additional interest in Minera El
Desquite S.A., the operations company of the Esquel gold project in
Argentina, giving Brancote a 60 per cent. controlling interest in the
project.
The acquisition was funded by the issue and placing of approximately 12.8
million new shares. This satisfied the purchase price of £3.19 million and
raised a further £400,000 working capital for the Company.
The interests of Carlos Miguens and Kerry Packer became substantial
shareholders in Brancote.
* September 1999 - Significant discoveries of a new style of mineralisation
to the south of Galadriel with the potential to host a multimillion ounce
deposit.
Exploration results continued to be very encouraging with continuing wide
intersections containing high gold values.
Pre feasibility studies commenced with the appointment of engineering
consultants to carry out a resource estimate on drill results to date.
The exploration programme was expanded for increased exploration in the
Northern half of the project and to identify new drilling targets.
* October 1999 - Outstanding drill results received showing an average
grade of 18.8 g/t with a width of 39 metres. The hole confirms indications
from earlier drilling that the mineralisation was improving, both in width
and grade towards the south and with depth.
The project team is currently engaged in target definition and location in
preparation for next seasons drilling.
Full details of this year's activities have been summarised in detailed press
releases which have been sent to shareholders. For further copies please
contact the London office on 0207 493 1002 or refer to our new website on
www.brancote.com.
This year has seen a transformation in the Company's position and we look
forward to the next six month's drilling programme at Esquel with confidence
and enthusiasm.
RICHARD PRICKETT, Chairman
BRANCOTE HOLDINGS PLC
UNAUDITED CONSOLIDATED PROFIT & LOSS ACCOUNT
FOR THE SIX
MONTHS ENDED
30 June 30 June
1999 1998
£ £
Turnover 982,542 1,168,562
Cost of sales (780,094) (1,222,486)
Gross profit/(loss) 202,448 (53,924)
Administrative expenses (208,867) (167,946)
Exploration costs (41,691) (86,161)
Operating loss (48,110) (308,031)
Profit on sale of investments 21,374 -
Interest payable (14,115) (23,159)
Interest receivable 12,885 9,343
Loss on ordinary activities before (27,966) (321,847)
taxation
Taxation - -
Retained loss for the period (27,966) (321,847)
Loss per share (0.08p) (1.7p)
STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
FOR THE SIX MONTHS ENDED 30 JUNE 1999
£
Loss attributable to shareholders of
Brancote Holdings PLC (27,966)
Unrealised exchange rate movements (524,688)
Total recognised losses for the period (552,654)
BRANCOTE HOLDINGS PLC
UNAUDITED CONSOLIDATED BALANCE SHEET
30 31
June December
1999 1998
£ £
FIXED ASSETS
Intangible
- deferred exploration costs 673,948 862,376
Tangible assets 217,292 222,125
Investments 951,334 142,953
1,842,574 1,227,454
CURRENT ASSETS
Stock 777,110 441,826
Debtors 164,714 192,586
Cash at bank and in hand 1,212,064 130,233
2,153,888 764,645
CREDITORS: AMOUNTS FALLING DUE (606,214) (1,007,911)
WITHIN ONE YEAR
NET CURRENT ASSETS 1,547,674 (243,266)
CREDITORS: AMOUNTS FALLING DUE
AFTER MORE THAN ONE YEAR (366,059) (128,508)
PROVISION FOR LIABILITIES
AND CHARGES (71,999) (52,140)
2,952,190 803,540
CAPITAL AND RESERVES
Called up share capital 2,186,428 1,018,156
Share premium account 6,212,603 5,250,432
Special reserve 720,000 720,000
Profit and loss account (6,166,841) (6,185,048)
SHAREHOLDERS' FUNDS 2,952,190 803,540
Notes:
1. This interim Statement for the six months ended 30 June 1999 is unaudited
and was approved by the directors on 28 October 1999. The financial
information set out above does not constitute statutory accounts within
the meaning of section 240 of the Companies Act 1985. The information at
31 December 1998 has been extracted from the statutory accounts relating
to the year ended 31 December 1998 which have been filed with the
Registrar of Companies.
2. No dividends were proposed or paid in the six months ended 30 June 1999.
3. The accounting policies remain as stated in the Annual Report for the
year ended 31 December 1998.
4. Copies of this interim report are being sent to Shareholders
5. Copies of this interim report will be available to the public free of
charge from the office of Grant Thornton, Melton Street, Euston Square,
London, NW1 2EP during normal office hours, Saturdays, Sundays and bank
holidays excepted, for 14 days from today.
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