Interim Results
31 Março 2003 - 4:00AM
UK Regulatory
RNS Number:3818J
European Diamonds PLC
31 March 2003
European Diamonds PLC
PRESS RELEASE
31 March 2003
Continued Exploration Success
In presenting the Company's Interim Report today, Tony Williams, Chairman,
commented "We are extremely pleased with the progress of our exploration efforts
to date. Through 2002 we have had further major technical success with the
discoveries made at Lentiira. The continual flow of positive results from our
sampling at Lentiira strengthens our belief in the possibility of making the
first discovery of significantly diamondiferous kimberlites in Finland."
Interim Report for the six months ended 31 December 2002
Exploration
During the period under review our exploration activities have continued to
produce positive results and we have made further significant progress.
The Company's field crews are presently making use of three drill rigs and two
excavator sampling teams at the Lentiira project area. In addition, two ground
geophysical teams are in the field in this area. A further sampling crew is
working in the regional project areas.
Lentiira West
At Lentiira, another clear colourless macro diamond was discovered in surface
sampling in July and a significant new system of linear fracture zones, filled
with kimberlite, was identified in October. Results of the sampling at Lentiira
through late 2002 have continued to be very encouraging. Further chemical
analysis of these latest indicator minerals recovered at Lentiira, continues to
predict a diamondiferous source and further drilling and sampling of the linear
kimberlite fractures commenced in February 2003. Field teams are collecting
larger samples for independent diamond analysis and results are expected during
May 2003.
A further campaign of geophysical studies in late 2002 identified additional
"pipe-like" anomalies adjacent to the linear fracture zones. As soon as the
testing of the linear kimberlite fractures has been completed a post winter
programme of drilling and sampling these anomalies will be initiated.
Lentiira East
Ground geophysics over some eight airborne electro-magnetic targets has been
completed and all of these targets have now been confirmed. Drilling on these
targets will begin early in April and the plan is to collect samples of about
100kgs from each kimberlite for diamond analysis.
Regional Exploration
Follow-up till sampling on a highly prospective G-10 kimberlitic train at a
target area in northern Finland is proceeding well. Again, it is anticipated
that the results of this work will be available in May. The Company is planning
to follow this up with a detailed airborne geophysical for the area in early
Spring.
Financial
The interim consolidated financial statements for the six months ended 31
December 2002 are attached.
The consolidated net loss for the six months ended 31 December 2002, after
taxation, was #241,000 (loss per share 1.4p) compared to the consolidated net
loss of #323,000 (loss per share 2.0p) for the same period last year.
The Company's only source of income during the period was from bank interest,
which amounted to #15,000 (2001 - #28,000).
The intangible assets of #3.8 million in the consolidated balance sheet at 31
December 2002 (2001 - #1.9 million) represent accumulated deferred exploration
and evaluation costs in respect of the activities in Finland. The Company's
accounting policy in respect of these costs is to capitalise them pending
determination of the feasibility of the project to which they relate.
In March 2003, the Company completed a #1.5 million financing through a private
placing of 2 million ordinary shares of 5p each at a price of 75p per share to
certain institutional investors. The placees also received one warrant for every
two shares subscribed, with each warrant entitling the holder to subscribe for
one ordinary share of 5p at a price of 115p per share. The proceeds of the
placing are being used to advance the diamond exploration activities in Finland
and for general corporate purposes.
Summary
The Lentiira property is at the centre of an emerging diamond province in
north-western Europe, known as the Karelian Craton, which straddles the Russian/
Finnish border. In the Russian section of this Craton two world class diamond
bearing kimberlites, known as the Grib Pipe and Lomonosova, have already been
discovered. We believe that Finland contains the most prospective part of this
diamond province, which remains relatively unexplored.
The discoveries made to date at Lentiira demonstrate material technical progress
by the Company and continue to support the possibility of the discovery of the
first significantly diamondiferous kimberlites in Finland.
The additional funding of #1.5 million which we recently raised will enable us
to continue to advance our exploration efforts at Lentiira as well as undertake
some regional exploration programmes in Finland.
Anthony J Williams
Chairman
Corporate Information:
Stock Exchange listing: London AIM
Trading symbol: EPD
Shares in issue: 19,214,962
Website: www.europeandiamondsplc.com
E-mail address: enquiries@europeandiamondsplc.com
For further information please contact:
Anthony J Williams - Chairman
or
Graham A Potts - Company Secretary
European Diamonds PLC
22 Grosvenor Square
London, W1K 6LF
Tel: +44 (0) 20 7529 7502
Fax: +44 (0) 20 7491 2244
e-mail: enquiries@europeandiamondsplc.com
website: www.europeandiamondsplc.com
European Diamonds PLC
Consolidated Profit and Loss Accounts
(Unaudited) (Unaudited) (Audited)
6 months ended 6 months ended Year ended
31 Dec 02 31 Dec 01 30 Jun 02
#'000 #'000 #'000
Turnover - - -
Cost of sales - - -
Gross profit - - -
Administrative expenses 256 351 648
Operating loss (256) (351) (648)
Interest receivable and similar income 15 28 39
Loss on ordinary activities before
taxation (241) (323) (609)
Tax on loss on ordinary activities - - -
Loss for the financial period after
taxation (241) (323) (609)
Deficit brought forward (923) (455) (455)
Exchange gain/(loss) on re-translation
of net assets of subsidiary undertaking 18 (3) 141
Deficit carried forward (1,146) (781) (923)
Loss per share
- undiluted 1.4p 2.0p 3.7p
All amounts reflected above relate to continuing operations.
There were no gains or losses arising during the period, other than those
reflected above.
European Diamonds PLC
Consolidated Balance Sheets
(Unaudited) (Unaudited) (Audited)
As at As at As at
31 Dec 02 31 Dec 01 30 Jun 02
#'000 #'000 #'000
Fixed assets
Tangible assets 9 7 10
Intangible assets 3,878 1,959 2,935
3,887 1,966 2,945
Current assets
Debtors and prepayments 86 12 117
Cash at bank and short term deposits 444 1,407 1,644
530 1,419 1,761
Creditors
Amounts falling due within one year 185 250 156
Net current assets 345 1,169 1,605
Total assets less current liabilities 4,232 3,135 4,550
Provision for liabilities and charges 11 103 107
Deferred income 110 - 109
Net assets 4,111 3,032 4,334
Capital and reserves
Called up share capital 861 821 861
Share premium account 4,368 2,964 4,368
Merger reserve 28 28 28
Profit and loss account (1,146) (781) (923)
Equity shareholders' funds 4,111 3,032 4,334
European Diamonds PLC
Consolidated Cash Flow Statements
(Unaudited) (Unaudited) (Audited)
6 months 6 months Year
ended ended ended
31 Dec 02 31 Dec 01 30 Jun 02
#'000 #'000 #'000
Net cash (outflow) from operating
activities
Operating loss (256) (351) (648)
Depreciation - - 2
Decrease in debtors 31 101 4
Increase/(decrease) in creditors 29 (168) (287)
(Decrease)/increase in provision for
liabilities and charges (96) 103 107
(292) (315) (822)
Returns on investment and servicing of
finance 15 28 39
Capital expenditure and financial
investment (927) (587) (1,365)
Net cash (outflow) before management of
liquid resources and financing (1,204) (874) (2,148)
Management of liquid resources 901 800 649
Financing - 294 1,738
(Decrease)/increase in cash during the
period (303) 220 239
Reconciliation of cash flow to movement
in net funds
(Decrease)/increase in cash (303) 220 239
Decrease in short term deposits (901) (800) (649)
Decrease in net funds arising from cash
flows (1,204) (580) (410)
Translation differences 4 (3) 64
Change in net funds (1,200) (583) (346)
Net funds brought forward 1,644 1,990 1,990
Closing net funds 444 1,407 1,644
Notes:
These interim accounts were approved by the directors on 28 March 2003. The
Group's principal accounting policies remain as stated in the Annual Report for
the year ended 30 June 2002.
The financial information set out above does not constitute statutory accounts
as defined in section 240 of the Companies Act 1985. Statutory accounts for the
year ended 30 June 2002, on which the report of the auditors was unqualified and
did not contain a statement under section 237 of the Companies Act 1985, have
been filed with the Registrar of Companies.
No dividend is being declared or paid for the period.
Copies of this report are being sent to all shareholders. Additional copies are
available from the Company's office at 22 Grosvenor Square, London W1K 6LF or
the Company's website www.europeandiamondsplc.com.
This information is provided by RNS
The company news service from the London Stock Exchange
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