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Golden Prospect PLC (AMBR)

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Friday 29 June, 2001

Golden Prospect PLC

Final Results

Golden Prospect PLC
29 June 2001

                              GOLDEN PROSPECT PLC

                         REGISTERED NUMBER:  3172986

                           ANNOUNCEMENT OF RESULTS

                     FOR THE YEAR ENDED 31 DECEMBER 2000

                             GOLDEN PROSPECT PLC
                             CHAIRMAN'S STATEMENT



When I last reported to Shareholders, I stated that the Board's strategy is to
pursue undervalued assets using a 'Vulture Fund' or aggressive value concept
in a cyclical sector showing significant signs of a revival in market
sentiment.  I further explained that some base and precious metal prices were
again enjoying renewed strength and that management intended to increase the
company's portfolio exposure to those recovering sectors as opportunities
arose.  Although some base metal prices have softened again in anticipation of
a slower World economy, I am pleased to say that there nevertheless remains a
promising trend in the junior resources sector.  A sustainable interest in
equity financings in this market place has developed and according to some
informed market specialists, there is potential for a very robust investment
climate indeed.  This reflects the increasing number of new opportunities that
are emerging from a return to more vigorous exploration programmes and also to
successful London Stock Market debuts and generally a positive reception to
dual listings from Australia and Canada - where investor sentiment is still
lagging that of London.


There are a variety of reasons why the resources sector has attractions at the
present time. One is that it is an alternative sector of the market to
traditional old economy types of companies and the new economy companies.  It
is a cyclical industry, very much so, and embraces not only gold mining and
base metal stocks but also oil and gas shares.  They tend to be what is called
the cyclical industries, and a lot of institutional money is beginning to flow
into the sector,  which also has classic defensive qualities.  Some of the
major companies, Rio Tinto, Western Mining, Billiton and Anglo American all
have very large Stock Market capitalisations, institutions can deal in their
shares and thus we are seeing increasing buying interest.  As always, the
leaders carry up the juniors.

It is also happening at a time when the other major sector of the natural
resources market, that of oil and gas companies, is also buoyant.  The energy
difficulties in the United States, notably California, and last winter's firm
gas prices have attracted investors into the sector.

The combined effect has attracted a number of speculators who last witnessed
so called 'blue-sky' opportunities in the high tech euphoric market conditions
of eighteen months ago.  The natural resources sector is one of very few that
offers the investor the speculative excitement that they are often looking
for.   It is the classic investment arena for high risk/high return stocks.


The gold and precious metal markets are also well up on a year ago with their
stock market indices among the best performers of late.  Platinum and
Palladium prices have been particularly strong but gold shares have been
witnessing large trading volumes in line with the volatility of the underlying

I am a strong believer in the 'bottoming-out' of the gold market, which I
believe will be in the shorter term as renewed inflationary pressures are

I have been a student of bullion and gold shares since I was Chairman of the
Australian Bullion Company, among Australia's leading gold dealers, some
twenty years ago.  Never have I seen such division of opinion among the
analysts regarding the future trend of the gold price.  So many extreme views
and opinions ranging from manipulation and conspiracy theories to hedge-book
disasters are likely to be nothing but rumour-mongering all designed to
stimulate investor demand.  The truth is that inflationary pressures, the
medium term outlook for the US dollar, overwhelming financial difficulties in
the global banking system and very onerous major international political
upheavals are the only key factors that will dictate longer-term trends. They
are the only strong components that can dramatically affect the physical
trading balances of the metal itself.

There is a high probability that the recent volatility in the gold price has
been solely in response to the growing inflationary fears and is pointing to
future weakness in the US dollar.  This is gradually unwinding the technical
issues or market aberrations such as the tightening in the illiquid leasing
market. Other monetary factors include the policies of the Central Banks, the
physical supply and demand equation in India, hedge-book squeezes (with all
the implications that go with it) and other moderate arguments are all
contributing to the volatility.  This volatility is attracting an increasing
number of momentum players back into the market.

Sentiment has significantly changed among many of the larger investors and the
weight of funds should now be playing the market actively and generally on the
long side.  A new bull market, in my view, has already begun, perhaps
partially endorsed by the current trend towards global mergers and
acquisitions, the latest development being the recent Barrick bid for


Much of the year under review focused on management closing the acquisition of
the Eyres Reeds Australian Resources Fund which brought in £7.37m cash and
quoted securities - mainly of a strategic nature.  The acquisition involved
the issue of circa 38 million new ordinary shares in your company at 19.5
pence each.

This acquisition, although a transaction that was very protracted and time
consuming as previously reported, was nevertheless extremely well timed given
the improvement in sector investor sentiment.  The value of the investments
overall merged has risen in most cases although rationalisation of the
portfolio produced some losses as well.  As a result of the amalgamation of
the portfolios, the group strategic public quoted shareholdings now comprise:

                Geographe Resources                    35%
                Samson Exploration                     29%
                Sapphire Mines                         24%
                Perilya                                19%
                Esmeralda Exploration                21.5%
                Equigold                                7%
                Kestrel Energy                         13%
                Greenwich Resources                     3%
                Titan Resources                         4%


Geographe Resources was a successful goldmining company which following
closure of the Chalice Goldmine has over the past 12 months become an
investment holding company in which Golden Prospect owns 35%.  The company has
recently entered into an agreement to purchase Spacelift Australia.  This
company has an exclusive agreement with the Russian authorities to use
existing technology and infrastructure to fast track commencement of launch
services for the small low earth orbit (LEO) satellite market from Woomera in
South Australia, with a relatively small investment in infrastructure.

Spacelift believes that the low cost accuracy, reliability and short lead time
to commencement of operations, together with the geo-political and
geographical position from which it intends to operate, will allow the company
to develop a sizeable niche in the LEO satellite market.  This is an expanding
market because of the huge growth in telecommunications and the fact that many
telecommunication satellites are small and fit into Spacelift's launch

Spacelift will utilise the highly reliable START family of launch vehicles
which are low cost, accurate and reliable. Invesment Bankers CIBC have raised
A$1m at 20 cents per share to provide extra financial support to Geographe
which has signed Stage 1 of a two stage agreement.  Geographe continue to have
circa A$5m cash and securities within its asset base.

During the year Sapphire Mines was subject to a share accumulation by Mr Mark
Savage.  Golden Prospect's shareholding in Sapphire is retained at 24% with
joint Board representation with Mr Savage. The company's joint venture mining
operations based in New South Wales, are still in production and the holding
company has cash and liquid assets of over A$3m for expansion.  Golden
Prospect and Mr Savage intend to find a larger mining project in which to
inject into the Sapphire Mines listed structure.

Samson Exploration has continued to increase its shareholding in Kestrel
Energy Inc a NASDAQ quoted oil and gas company. Samson's 19.6% shareholding in
Kestrel is supported by Golden Prospect's 13% shareholding in Kestrel giving
both companies a significant interest. Kestrel is active in the Green Canyon
Basin and has a prospective drilling programme.  Energy prices in the USA are
still at levels whereby Kestrel is well placed to develop its strong portfolio
of natural gas prospects in various stages of maturity.

Samson also has a large strategic position in AGR, a quoted gold exploration
company operating in Mongolia.  A substantial ore body has been identified and
financing is being arranged to develop a mine. Samson management is also
investigating a number of additional opportunities in the base metal markets
within Australia.

During the year Golden Prospect increased its equity stake in Perilya to 19%.
Perilya is an Australian listed natural resource company with a portfolio of
gold and metal exploration assets and circa A$36m in cash and 23.4% of Strike
Oil NL which owns assets adjacent to the Woodside Energy major oil and gas
discovery in the Otway Basin, Victoria.  Golden Prospect plc is expected to
have Board representation.  A report by CIBC in mid-June valued Perilya's
assets at substantially above the current share price.  Golden Prospect hopes
to have a joint venture development with Perilya as opportunities arise.

Esmeralda Exploration saw its goldmining operation in Rumania suffer following
the breaching of its tailings damn in Hungary and through its Rumanian joint
venture company with Aural SA and which resulted in severe environmental
damage. Golden Prospect has written down this investment in its accounts but
expects to claw back value as a return to mining operations recommences and
starts generating positive cash flow once more.  A relisting of the company is
anticipated in the not too distant future.

Golden Prospect continues to build a position in Titan Resources, an emerging
nickel producer, which announced that the World's second largest nickel
producer, Inco Limited, was testing its new leaching BioHeap bacteria based
extraction technology used to separate nickel from sulphide oil bodies.  It is
the intention to continue to accumulate shares in this company. Golden
Prospect director, Mr Neil MacLachlan, is also a director of Titan.

Equigold NL is an aggressive West Australian junior gold explorer and producer
with a highly rated and energetic management team.  Its share price has risen
substantially over recent months.  The company has recently boosted its
dividend payment.  Golden Prospect continues to steadily increase its stake
now standing at 7 per cent.

Greenwich Resources is a gold minerals metals and oil explorer and producer in
Australia as well as having interests in Venezuela, Greece and the Rozmital
exploration area of the Czech Republic.  Quoted on the London Stock Exchange,
it has recently received much interest in its major activity in Northern
Greece where it is in the process of completing a feasibility study.  Proven
probable reserves of gold now stand at 1.2 million tonnes at 18.4 g/t in the
Viper ore body, to be developed underground, and 260,000 tonnes at 3.5 g/t in
the planned adjacent pit at St Demetrios.  The company has a 49% stake in the
mine development.

Kestrel Energy has a portfolio of mature exploration assets in oil and gas
regions in the USA.  The Green Canyon wells have all been producing with
encouraging results and the company is in joint venture negotiations with
major companies to develop its portfolio.  Its affiliate company, Victoria
Petroleum NL, is also engaged in an exploration programme in the San Joaquin
Basin, California,  which is highly prospective.

The company is to strengthen its management and initiate a significant
investor relations programme in the coming year.  As referred to earlier,
Samson Exploration and Golden Prospect jointly own 32% of this company and Mr
Neil MacLachlan, a Golden Prospect director, is represented on the Kestrel


A substantial part of an aggressive value strategy also involves taking
advantage of distressed asset prices in areas where Country risk profiles are
temporarily high.  Although a more speculative approach, whereby the risks are
greater, so can be the rewards.  In this respect the company consolidated its
position in the Ethiopia Yubdo Platinum area.

A Confidentiality Agreement has been signed with a major international mining
company and expressions of significant interest have also been received from
other medium sized  companies (a full report on these activities is in the
accompanying Exploration Report by Dr John Bowles of Mineral Science Limited
and consulting geologist, Mr Gavin Bowyer).


The company's net assets at 31 December 2000 were £14,262,835 of which £
3,201,323 was in cash and £8,577,067 in quoted securities.  Mineral assets are
stated at £2,488,421 reflecting expenditures at cost of £3,837,878 less
provisions of £1,349,457.  Some of these intangible assets have been carried
at cost for some time and in the case of Sierra Leone and under advice the
Board considers it prudent to make a provision against the Lake Sonfon gold
exploration assets which are on a care and maintenance basis until the
proposed Sierra Leone elections in November point the way to the future.
However, the cost of the platinum assets are maintained due to significant
potential for joint venture development, currently under discussion, with
various parties.  The company has also written off its assets in Guinea, the
licences having been surrendered back to the Guinea Authorities.

The upshot of this more stringent accountancy approach, produced a loss of £
1,439,023.    These include exceptional losses of £1,481,665 representing the
provisions against mineral assets of £1,349,457 and a provision against the
company's investment portfolio of £132,208. On a post-balance sheet event
basis a stronger result has emerged in that the next Interim Report will show
the positive effects of the more prudent accounting policy.  Corporate
overheads remain low with minimal administration expenditure although
significant costs are associated with maintaining a listing on the Alternative
Investment Market via the Nominated Adviser and Brokers fees.


Overall your company is in a strong position despite the current resource
commodity market conditions and enjoys considerable deal flow. An increase in
both corporate and investment activity must be matched by a strengthening of
management so that full advantage can be taken of a number of exciting
opportunities currently being examined.

Accordingly the Board proposes to invite two new directors experienced in the
mining and investment sector to join the Board.  In effect these appointments
will replace the outgoing directors - Mr Kevin Crotty who retired and Mr David
Landauer who also retired subsequent to the year end.  The Board would like to
thank them for their past contributions.

I would like to take this opportunity of thanking all the company's
professional partners and employees in both the UK and Australia not
forgetting the loyalty of shareholders during the period.

I look forward to reporting on encouraging results in next year's Annual
Chairman's Statement.

Malcolm A Burne


Dated 29 June 2001.

                             GOLDEN PROSPECT PLC

                         Year ended 31 December 2000

                                            Year         18 Months
                                          ended            ended
                                        31/12/00         31/12/99

                                           £                 £

Sales                                 4,042,119           1,851,968

Cost of sales                         3,952,178           1,944,537

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

Gross profit/(loss)                      89,941             (92,569)

Other operating income - 
dividends received                       50,626              31,057

Administrative expenses                (176,007)           (215,150)

Exceptional Item - Provision 
                   for impairment
                   of exploration 
                   assets             (1,349,457)                 -

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

Operating loss - continuing 
                 operations           (1,384,897)          (276,662)

Loss on disposal of fixed 
asset investments                        (32,208)                 -
Interest receivable                       78,082             62,830
Provision against fixed asset 
investments                             (100,000)          (748,682)

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

Loss on ordinary activities 
before taxation                       (1,439,023)          (962,514)

Tax on loss/(profit) on ordinary 
activities                                     -                  -
                                    ------------        -----------

Loss for the financial period         (1,439,023)          (962,514)

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

Profit/(loss) per ordinary share 
- basic                                   (2.10p)            (1.97p)

                             GOLDEN PROSPECT PLC


                              31/12/00                     31/12/99

                        £                 £            £              £

Intangible assets                    2,488,421                    3,736,207
Investments                          2,478,822                    2,682,571

                                  ------------                 ------------
                                     4,967,243                    6,418,778

Investments           6,098,245                     1,168,419
Debtors: Amounts 
falling due
within one year          29,596                         8,439
Cash at bank and 
in hand               3,201,323                       809,528
                   ------------                  ------------

                      9,329,164                     1,986,386

falling due within 
one year                (33,572)                      (20,004)

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

NET CURRENT ASSETS                   9,295,592                    1,966,382

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

LIABILITIES                         14,262,835                    8,385,160

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

Called up share 
capital                              8,698,496                    4,919,500
Share premium 
account                              7,995,458                    4,457,756
Profit and loss 
account                             (2,431,119)                    (992,096)

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

EQUITY SHAREHOLDERS' FUNDS          14,262,835                    8,385,160

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

                             GOLDEN PROSPECT PLC

                               Year ended 31 December 2000

                        Year                       18 Months
                       Ended                         Ended
                     31/12/00                       31/12/99

                          £            £              £            £
Net cash outflow)
from operating 
activities                          (311,414)                  (200,374)

Returns on 
investments and
servicing of finance
Interest receivable                   78,082                     62,830
Taxation                                   -                     (9,843)

Capital expenditure 
and financial investment
Payments to acquire 
intangible fixed assets   (101,671)                 (260,994)
Payments to acquire 
fixed asset
investments                (46,366)                 (851,461)
Receipt from disposal 
of fixed asset 
investment                 259,424                         -
Purchase of 
investments             (2,151,383)               (1,565,719)
Sale of 
Investments              4,042,119                 1,851,968

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

Net cash inflow/
from capital 
expenditure                        2,002,123                   (826,206)

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

Net cash inflow/
(outflow) before 
financing                          1,768,791                   (973,593)

Issue of ordinary 
share capital                        623,004                    188,727
(net of issue expenses)
                                ------------                -----------

in cash resources                  2,391,795                   (784,866)

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

   Copies of the accounts are available at 143 - 149 Great Portland Street
                                London W1W 6QN


a d v e r t i s e m e n t