RNS Number:1795U
Marakand Minerals Limited
02 April 2007
Marakand Minerals
Interim Results for the six months ended 31 December 2006
Marakand Minerals Limited ('Marakand', or the 'Company') (MKD.L), is pleased to
announce its interim results for the six months ended 31 December 2006. Marakand
is an 86% controlled subsidiary of Oxus Gold plc ('Oxus') (OXS.L).
Highlights include :
* Commencement of exploration of the Hatay copper-gold licence in Southern
Turkey. Initial 10 hole programme (582m) completed in February 2007
* Marakand's Turkish exploration assets to be sold by Oxus to KazakhGold
subject to Marakand Board approval and determination of an appropriate fair
market value to be paid to Marakand by Oxus
* Marakand continues to seek clarification from the Uzbek Government as to
its future participation in the Khandiza project in Uzbekistan
* Restructuring of Marakand Board of Directors to ensure an appropriate
composition and cost structure
Turkey
In August 2006, Marakand announced that it had entered into exclusive option
agreements to acquire majority interests in two separate copper-gold exploration
license areas in southern Turkey, namely the Hatay exploration license and the
Karakilise exploration license. Both license areas are located in the
prospective southern Turkish 'ophiolite belt' related to the Cyprus Arc, and
host 'Cyprus-type' copper-gold mineralisation. Exploration works, including
surface drilling, have previously been undertaken on both license areas.
In February 2007, Marakand completed a further programme of stream sediment
sampling, geological mapping, surface channel sampling and a 10 hole surface
drilling programme (582m) on the Hatay license. Marakand has dispatched channel
and drill core samples to an independent laboratory for analysis.
In March 2007, Marakand was advised by Oxus, that Oxus has agreed in principle
and subject to final contract, to sell certain assets to KazakhGold Group
Limited ("KazakhGold") (KZG.L), including certain exploration assets in Turkey,
currently owned by Marakand. The Board of Directors of Marakand confirm that any
agreement between Oxus and KazakhGold in respect of the sale of such Marakand's
Turkish assets will require Marakand board approval and, in addition, any such
sale will be subject to the determination of an appropriate fair market value to
be paid to Marakand by Oxus for these assets. Marakand shareholders will be kept
informed of any developments on this issue, and Marakand will be reporting on
the Hatay exploration programme as soon as all results are available and
evaluated.
Khandiza and surrounding SE Uzbekistan exploration area
In August 2006, Marakand received notification of the Uzbek Government's
decision to transfer the resources of the Khandiza zinc, lead, copper, silver,
gold deposit in South East Uzbekistan from its nominated partner, the Uzbek
State Committee of Geology, to the state owned Almalyk Mining and Metallurgical
Combinat. Marakand continues to seek clarification from the Uzbek Government as
to its future participation in the Khandiza project. Marakand maintains that,
given both the expenditure and the considerable amount of work carried out on
the project's feasibility study and environmental and social impact assessment
by both the Company and its majority shareholder, Oxus, that it is in a position
to contribute very positively towards the development of Khandiza, and seek a
return for its investment to date.
In November 2006, Oxus reported that it had signed a subscription agreement with
Zeromax, Uzbekistan's largest private-sector company, as a strategic investor
and partner in new alliances. This will involve evaluating additional
opportunities in Uzbekistan, and it is hoped that these new alliances will
include Marakand's future involvement in the Khandiza project.
In the meantime, Marakand has cut back its 'holding costs' in Uzbekistan to a
minimum.
Akjilga Silver Project (Tajikistan)
Marakand has had no official response from the Tajik Government to its
application for a licence to explore and develop this deposit. Marakand has
examined ways of participating with local partners in securing the licence, but
having been advised that the licence has been issued to another company,
Marakand has not committed to any further expenditure, and has ceased to pursue
this project.
Corporate Activity
In January 2007, Marakand announced its intention to restructure its Board of
Directors (the 'Board') to ensure an appropriate Board composition and cost
structure in light of its exploration focus in Turkey, the ongoing process of
seeking clarity on the Company's future participation in the Khandiza project,
and with the increased ownership, financial support and involvement in Marakand
by Oxus. Alasdair Stuart and Richard Robinson offered their resignation from the
Board, to be replaced by Oliver Prior as non-executive director. Mr Prior
presently serves as an independent non-executive director of Oxus.
Financial Results
The Company had $62,275 cash at the end of the review period. Marakand's funding
for the period, principally for exploration in Turkey, has been met by a loan
agreement with Oxus, dated 22nd September 2006. As of 31st December 2006, the
inter-company loan stood at $892,380, which includes $330,000 to repay accrued
service and administration fees payable to Oxus. Interest is payable at 3% above
1 month LIBOR and the loan is secured by pledge or mortgage over the Company's
assets.
(All figures reported in USD)
Marakand Minerals is a mining exploration and development company focused in
Turkey and Central Asia and listed on the Alternative Investment Market (AIM) in
London, stock exchange symbol MKD.L.
For further information please visit www.marakand.co.uk or contact :
Marakand Minerals Limited
William Charter, Executive Director Tel: + 998 93 180 8368
Julia Flowers, Investor Relations Officer Tel: +44 (0)20 7907 2000
Canaccord Adams Limited
Robin Birchall Tel: +44 (0) 20 7050 6500
Consolidated Income Statement
----------------------- ----------- ------------- ------------
Unaudited Unaudited Audited
Six months to Six months to Twelve months
to
31 December 31 December 30 June 2006
2006 2005
US$ US$ US$
----------------------- ----------- ------------- ------------
Revenue
Gross revenue 30,393 - 132,029
Expenses
Administration expenses (90,000) (360,000) (720,000)
Deferred exploration and
evaluation expenditure 0 (716,673) (1,223,558)
----------------------- ----------- ------------- ------------
Gross loss (59,607) (1,076,673) (1,811,529)
Stock based compensation (32,700) (134,700) (207,000)
Foreign exchange loss (420) (57,716) (42,143)
----------------------- ----------- ------------- ------------
Loss from operations (92,727) (1,269,089) (2,060,672)
Interest
(payable)/receivable (15,563) 29,309 34,772
----------------------- ----------- ------------- ------------
Loss before taxation (108,290) (1,239,780) (2,025,900)
Taxation (2,442) (721) (1,504)
----------------------- ----------- ------------- ------------
Loss for the period (110,733) (1,240,501) (2,027,404)
----------------------- ----------- ------------- ------------
Loss per share
Basic 0.11 1.23 2.01
Diluted 0.11 1.23 2.01
----------------------- ----------- ------------- ------------
Consolidated Balance Sheet
----------------------- ----------- ------------- ------------
Unaudited Unaudited Audited
31 December 31 December 30 June 2006
2006 2005
US$ US$ US$
----------------------- ----------- ------------- ------------
ASSETS
Current assets
Cash and cash equivalents 65,275 625,418 131,789
Inter company - - -
Trade and other
receivables 62,069 3,915 589
----------------------- ----------- ------------- ------------
127,344 629,333 132,378
Non-current assets
Exploration and mining
properties 29,066,840 28,456,000 28,456,000
----------------------- ----------- ------------- ------------
29,194,184 29,085,333 28,588,378
----------------------- ----------- ------------- ------------
LIABILITIES
Current liabilities
Trade and other payables 124,252 72,874 42,605
Inter company 892,380 42,271 290,188
Shareholders' equity
Capital stock 1,780,804 1,780,804 1,780,804
Reserves 26,396,748 27,189,383 26,474,781
----------------------- ----------- ------------- ------------
28,177,552 28,970,187 28,255,585
----------------------- ----------- ------------- ------------
29,194,184 29,085,333 28,588,378
----------------------- ----------- ------------- ------------
Consolidated Statement of Cash Flows
----------------------- ----------- ------------ -----------
Unaudited Unaudited Audited
Six months to Six months to Twelve months
to
31 December 31 December 30 June 2006
2006 2005
US$ US$ US$
----------------------- ----------- ------------ -----------
CASH FLOWS FROM OPERATING ACTIVITIES
Loss for the period (110,733) (1,240,500) (2,027,403)
Adjustments for:
Depreciation and assets written - - -
off
Stock based compensation 32,700 134,700 207,000
Salaries and bonuses converted to - - -
shares ----------- ------------ -----------
-----------------------
Operating loss before
working capital changes (78,033) (1,105,800) (1,820,403)
Decrease in trade and
other receivables (61,480) 33,590 570
Increase in trade and
other payables 683,839 18,302 235,949
----------------------- ----------- ------------ -----------
Cash used by operations 544,326 (1,053,908) (1,583,884)
----------------------- ----------- ------------ -----------
CASH FLOWS FROM INVESTING ACTIVITIES
Exploration and mining
expenditure (610,840) - -
----------------------- ----------- ------------ -----------
Net cash used in
investing activities (610,840) - -
----------------------- ----------- ------------ -----------
CASH FLOWS FROM FINANCING ACTIVITIES
Warrants and options exercised - - -
Shares issued - - -
----------------------- ----------- ------------ -----------
Net cash provided by financing - - -
activities ----------- ------------ -----------
-----------------------
Net (decrease) in cash
and cash equivalents (66,514) (1,053,909) (1,583,884)
----------------------- ----------- ------------ -----------
Cash and cash equivalents
as at 1 July 131,789 1,679,328 1,715,673
----------------------- ----------- ------------ -----------
Cash and cash equivalents
as at 31 December 65,275 625,418 131,789
----------------------- ----------- ------------ -----------
Statement of Changes in Shareholders' Equity
-------------------- -------- ---------- -------- --------- --------
Share Capital reserve Capital Accumulated Total
capital share premium reserve loss
US$ US$ US$ US$ US$
-------------------- -------- ---------- -------- --------- --------
Balance as at 1
July 2005 1,780,804 5,520,995 27,033,200 -4,259,011 30,075,988
Shares issued
Warrants and options
exercised
Stock based
compensation 134,700 134,700
Loss for the
period -1,240,501 -1,240,501
-------------------- -------- ---------- -------- --------- --------
Balance as at
31 December
2005 1,780,804 5,520,995 27,167,900 -5,499,512 28,970,187
-------------------- -------- ---------- -------- --------- --------
Shares issued
Warrants and options
exercised
Stock based
compensation 72,300 72,300
Loss for the
period -786,902 -786,902
-------------------- -------- ---------- -------- --------- --------
Balance as at 1
July 2006 1,780,804 5,520,995 27,240,200 -6,286,414 28,255,585
-------------------- -------- ---------- -------- --------- --------
Shares issued
Warrants and options
exercised
Stock based
compensation 32,700 32,700
Loss for the
year -110,733 -110,733
-------------------- -------- ---------- -------- --------- --------
Balance as at
31 December
2006 1,780,804 5,520,995 27,272,900 -6,397,147 28,177,552
-------------------- -------- ---------- -------- --------- --------
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
1. These Interim Consolidated Financial Statements follow the same accounting
policies and their methods of application as the 2006 accounts.
Not all disclosures required by generally accepted accounting principles for
annual financial statements are present, and accordingly, these Interim
Consolidated Financial Statements should be read in conjunction with the
Company's 2006 audited consolidated financial statements.
Certain prior year amounts have been reclassified to conform to account
presentation in the current year.
The Interim Consolidated Financial Statements, including comparatives, have been
prepared in accordance with International Financial Reporting Standards ("IFRS")
2. The basic and diluted profit per share has been calculated by reference to a
loss, after taxation, of $110,733 (December 2005: $1,241,000) (June 2006:
$2,027,000 loss) and the weighted average number of ordinary shares in issue
of 101,023,490 (December 2005: 101,023,490) (June 2006: 101,023,490)
3. The Directors are not declaring a dividend for this period
4. Copies of this report are being sent to all shareholders. Additional copies
will be available to the public at the registered office, 105 Piccadilly,
London, W1J 7NJ and will be posted on the company's website
www.marakand.co.uk
These Interim Consolidated Financial Statements consolidate the results of
Marakand Minerals Limited and its wholly owned subsidiary, Khandiza Services
Limited.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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