RNS Number:7055E
Van Dieman Mines plc
28 September 2007
VAN DIEMAN MINES PLC
Interim Results
Final Approvals Granted, Construction Commenced
Van Dieman Mines plc ("Van Dieman" or "the Company"), the AIM listed mining
company which is developing 100% owned tin and sapphire mines in Tasmania,
announces its Interim Results for the period ended 30 June 2007.
Highlights:
* Scotia Mine development approval granted
* All plant & equipment for Scotia sourced
* Endurance Mine permitting proceeding: production expected second half of
2008
* Marketing agreements for tin and sapphire in place
Post Period:
* Scotia Mine infrastructure works commenced
* In-situ value of revised JORC resource in excess of A$1.3 billion
* Initial production from the central concentrate clean up facility expected
early October
* Debt funding offer over A$15.4 million received subject to final
documentation and equity funding
* Equity funding of #4.5 million secured conditional on EGM approval
Michael Spriggs, Chairman, commented:
"We are very optimistic about our future prospect now that we have secured the
conditional equity and debt funding required to allow us to proceed with
development. Now that final mine approvals have been granted and, with funding
in place, we expect to be able to proceed rapidly with mine development.
Infrastructure works at the Scotia mine are underway and, subject to finalizing
funding, ramp up to full production is expected around the end of this year.
This will be followed by the Endurance Mine which is scheduled to come on stream
second half of 2008."
28 September, 2007
ENQUIRIES:
VAN DIEMAN MINES plc Tel: +61 (0) 2 8908 5103
Clive Trist, Managing Director Email: clive.trist@vandiemanmines.com
GRANT THORNTON CORPORATE FINANCE Tel: +44 (0) 870 991 2318
Fiona Owen
FOX DAVIES CAPITAL LIMITED Tel: +44 (0) 20 7936 5230
Richard Hail, Corporate Finance
BANKSIDE CONSULTANTS Tel: +44 (0) 20 7367 8888
Michael Padley / Libby Moss
CHAIRMAN'S STATEMENT
I am pleased to report the Company's progress and interim results for the six
month period ended 30 June, 2007.
Review of Activities
After protracted bureaucratic delays the Company was finally granted development
approval for the Scotia Mine in June and since then progress in the granting of
related permits has moved ahead at a faster rate than expected.
The first production of tin, sapphire and gold from stockpiled material is
expected from the central concentrate clean-up facility early October, with ramp
up to full production at the Scotia mine scheduled around the year end.
Production from the Scotia mine is expected to be approximately 700 tonnes of
tin and 1.5 million carats of mine rough, gem quality sapphires per annum. The
gem stones will be sold to the 50/50 joint-venture company, V. Columbia Inc., at
market prices. Van Dieman will also share in the profit generated by the joint
venture.
Whilst waiting for the permitting process to be completed key items of mine
plant and equipment that had been ordered began arriving in Tasmania, and
marketing agreements for sapphire were put in place. In addition, exploration
has continued and the reserve base was increased substantially as a result of
the additional data received. The in-situ value of the reserves is now in
excess of A$1.3 billion.
Stage 1 of mine development will be completed with the Scotia Mine coming into
production around year end and with the Endurance mine scheduled to come on
stream in the second half of 2008.
Stage 2 is the development of the Great Northern Plains where the measured and
inferred resources are expected to be upgraded in mid-2008. In addition, we
expect to be in a position to produce JORC estimates of the resources at the
Pioneer, Monarch, Wyniford and Boobyalla tenements during 2008. Within the next
three years, the Company plans to double production by commencing mining
operations at its Fosters/Braithwaites tenements in the Great Northern Plains
region.
In July and August the Company successfully raised a total of #750,000 by way of
two placements of Ordinary Shares to provide short term working capital. The
Company is currently seeking funding of A$25.9 million and this is being sought
through a mixture of debt and equity funding. An offer of debt funding has been
received from an Australian financial institution for A$15.4 million to fund
plant and equipment for both the Scotia and Endurance mines. The debt finance
offer is conditional, inter alia, on the Company raising not less than A$10.5
million by way of an equity fund raising.
On the 27th September, 2007 the Company announced that it has raised #4.5
million by way of a placing of 35 million ordinary shares at a placing price of
10p per Ordinary Share and a further #1 million has been raised by way of an
aggregate nominal amount of convertible unsecured loan stock. The raising of
#4.5 million is the first tranche of a #5 million placing being undertaken by
Fox Davies Capital Limited on behalf of the Company. The fundraising of #4.5
million meets the minimum equity requirement to be able to finalise debt
financing and is conditional upon the Company securing shareholder approval at
an Extraordinary General Meeting to be held on 9 October, 2007.
Results
The results for the period are in line with management expectations and the
consolidated loss on ordinary activities, after tax, for the six month period
was #481,268. This comprises mining expenses of #15,774, administrative expenses
of #546,580 and interest earned of #81,086. Cash at bank and on hand at the end
of the period totalled #55,874.
M.J. Spriggs
Chairman
28 September, 2007
CONSOLIDATED INTERIM FINANCIAL STATEMENTS
for the period ended 30 June 2007
CONDENSED CONSOLIDATED INTERIM INCOME STATEMENT
Six months to Six months to Year to
30 June 2007 30 June 2006 31 December 2006
Note un-audited un-audited Audited
# # #
Revenue - - -
Cost of Sales - - -
Gross Profit - - -
Mining Expenses (15,774) (54,052) (220,321)
Administrative expenses (546,580) (402,788) (928,380)
Loss from (562,534) (456,840) (1,148,701)
Operations
Interest received 81,086 82,045 132,381
LOSS BEFORE (481,268) (374,795) (1,016,320)
TAXATION
Income tax expense - - -
LOSS FOR THE (481,268) (374,795) (1,016,320)
PERIOD
Loss per share 2 (0.52p) (0.41p) (1.11p)
CONDENSED CONSOLIDATED INTERIM STATEMENT OF REQUIRED
INCOME AND EXPENSE
Six months to Six months to Year to
30 June 2007 30 June 2007 31 December 2006
un-audited un-audited audited
# # #
Exchange difference on 147,472 (161,730) (185,793)
translation of foreign subsidy
Loss for the period (481,268) (374,795) (1,016,320)
Total movements during the period (333,796) (536,525) (1,202,113)
VAN DIEMAN MINES PLC
CONSOLIDATED INTERIM FINANCIAL STATEMENTS
for the period ended 30 June 2007
CONDENSED CONSOLIDATED INTERIM BALANCE SHEET
Six months to Six months to Year to
30 June 2007 30 June 2007 31 December 2006
un-audited un-audited audited
# # #
ASSETS
Current assets
Trade & other receivables 41,270 7,066 85,217
Cash & cash equivalents 55,874 2,678,922 1,375,598
97,144 2,685,988 1,460,815
Non current assets
Property, plant and equipment 2,847,578 1,546,406 2,320,069
Trade and other receivables 70,739 67,224 66,699
Exploration and development 2,757,195 2,046,185 2,192,934
expenditure 5,675,512 3,659,815 4,579,702
TOTAL ASSETS 5,772,656 6,345,803 6,040,517
Six months to Six months to Year to
30 June 2007 30 June 2007 31 December 2006
un-audited un-audited audited
# # #
LIABILITIES
Current Liabilities
Trade and other payables 352,531 155,366 329,138
Current portion of long-term 95,450 14,704 68,239
borrowings
447,981 170,070 397,377
Non-current liabilities
Long term borrowings 305,352 161,676 290,021
305,352 161,676 290,021
TOTAL LIABILITIES 753,333 331,746 687,398
NET ASSETS 5,019,323 6,014,057 5,353,119
EQUITY
Share Capital 916,921 916,577 916,921
Share premium account 6,497,169 6,492,863 6,497,169
Translation reserve 266,791 143,380 119,319
Profit and loss account (2,661,558) (1,538,763) (2,180,290)
TOTAL EQUITY 5,019,323 6,014,057 5,353,119
VAN DIEMAN MINES PLC
CONSOLIDATED INTERIM FINANCIAL STATEMENTS
for the period ended 30 June 2007
CONDENSED CONSOLIDATED INTERIM STATEMENT OF CHANGES OF EQUITY
Share Share premium Translation Profit & Total
account
capital reserve Loss
account
# # # # #
Balance at 916,577 6,492,863 305,112 (1,163,970) 6,550,582
1 January 2006
Exchange differences - - (161,730) - (161,730)
on translation of
foreign operations
Loss for the period - - - (374,795) (374,795)
Balance as at 916,577 6,492,863 143,382 (1,538,765) 6,014,057
30 June 2006
# # # # #
Balance at 916,921 6,497,169 119,319 (2,180,290) 5,353,119
1 January 2007
Exchange differences - - 147,472 - 147,472
on translation of
foreign operations
Loss for the period - - - (481,268) (481,268)
Balance as at 916,921 6,497,169 266,791 (2,661,558) 5,019,323
30 June 2007
VAN DIEMAN MINES PLC
CONSOLIDATED INTERIM FINANCIAL STATEMENTS
for the period ended 30 June 2007
CONDENSED CONSOLIDATED INTERIM CASH FLOW STATEMENT
Six months to Six months to Year to
30 June 2007 30 June 2007 31 December 2006
un-audited un-audited audited
# # #
Cash flows from
operating activities
Loss after taxation (481,268) (374,795) (1,016,320)
Adjustments for
Depreciation 57,066 34,482 73,309
Interest income (81,086) (82,045) (132,381)
Decrease/(Increase) in trade 43,947 35,227 (42,400)
and other receivables
Increase/(Decrease) in trade (23,393) (17,501) 156,271
payables
Net cash outflow from (437,948) (404,632) (961,521)
operating activities
Cash flows from - -
investing activities
Purchase - property, plant (390,772) (962,229) (1,852,029)
and equipment
Exploration and development (471,715) (315,138) (315,138)
expenditure
Interest received 81,086 82,045 132,381
Net cash used in investing (781,401) (1,195,322) (2,034,786)
activities
Cash flows from financing
activities
Proceeds from issue of share - 340,000 344,650
capital
Payment of finance lease & (58,576) (20,291) (33,369)
hire purchase liabilities
Net cash used in (58,576) 319,709 311,281
financing activities
(1,277,925) (1,280,245) (2,685,026)
Net increase in cash and - - -
cash equivalents
Foreign exchange movement (41,799) (164,493) (63,036)
Cash and cash equivalents 1,375,598 4,123,660 4,123,660
at beginning of period
Cash and cash equivalents 55,874 2,678,911 1,375,598
at end of period
On behalf of the board:
..........................................
Director
Approved by the Board on: 2007
VAN DIEMAN MINES PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS TO 30 JUNE 2007 - UNAUDITED
1. ACCOUNTING POLICIES
Notes to interim results
Basis of preparation
This financial information has been prepared in accordance with International Financial
Reporting Standards (IFRS) and IFRIC interpretations, as adopted by the European Union and
those parts of the Companies Act 1985 applicable to companies reporting under IFRS. The
financial information has been prepared under the historical cost convention. The financial
information is in conformity with generally accepted accounting principles and requires the use
of estimates and assumptions that affect the reported amounts of revenues and expenses during
the reporting period. Although these estimates are based in management's best knowledge of the
amount. event or actions. actual results ultimately may differ from those estimates.
The financial information set out above does not constitute statutory accounts within the
meaning of Section 240 of the Companies Act 1985. It has been prepared on a going concern
basis in accordance with the International Reporting Standards. The accounting policies
applied in preparing the financial information are consistent with those that were adopted in
the Group's 2006 statutory accounts.
The financial information for the periods ended 30 June 2007 and 30 June 2006 has not been
audited.
Application of the going concern basis
The group's principal activity is the exploration for tin and sapphires and to develop and operate mining
activities in Northern Tasmania, Australia. In common with many mining companies, the successful outcome of
this project is dependent upon the granting and maintenance of mining leases, sourcing adequate finance,
controlling development costs and realizing income from production in line with its business plan.
Key items of plant and equipment for the Scotia mine have either arrived in Tasmania or are packed ready for
shipment from overseas suppliers. However, further finance is required to complete the development of the
Scotia mine, develop the Endurance mine and provide adequate working capital until the group achieves
positive operating cash flows. On the 17 September, 2007 the directors announced the Company was seeking
funding of A$25.9 million and was being sought through a mixture of debt and equity funding. An offer of
debt funding has been received from an Australian financial institution for A$15.4 million to fund plant and
equipment for both the Scotia and Endurance mines. The debt finance offer is conditional, inter alia, on the
Company raising not less than A$10.5 million by way of an equity fund raising. On the 27th September 2007 the
company announced that it has raised #4.5 million by way of a placing of 35 million ordinary shares at a
placing price of 10p per ordinary share and a further #1 million has been raised by way of an aggregate
nominal amount of convertible unsecured loan stock. The raising of #4.5 million is the first tranche of a #5
million placing being undertaken by Fox Davies Capital Limited on behalf of the
Company. The fundraising of #4.5 million meets the minimum equity requirement to be able to
finalise debt financing and is conditional upon the company securing shareholder approval at
an Extraordinary General Meeting to be held 9th October, 2007.
The directors have therefore concluded that it is appropriate to prepare the accounts on a
going concern basis although, as with many projects of this nature, there remain significant
uncertainties as to the timing and amount of forecast cash flows.
Basis of consolidation
The financial statements consolidate the accounts of Van Dieman Mines plc and its subsidiary undertakings. The
results of subsidiaries are included from the date of acquisition.
Deferred taxation
Deferred taxation is recognised in respect of all timing differences that have originated at the balance sheet
date where transactions or events have occurred at that date that will result in an obligation to pay more, or a
right to pay less or to receive more tax with the following exception.
Deferred tax assets are recognized only to the extent that the directors consider that it is more likely than not that
there will be suitable taxable profits from which the future reversal of the underlying timing differences can be
deducted.
Deferred tax is measured on an undiscounted basis at the tax rates that are expected to apply in the periods in which
the timing differences reverse, based on tax rates and laws enacted or substantively enacted at the balance sheet date.
Tangible fixed assets and depreciation
Depreciation is calculated to write down the cost of all tangible fixed assets by equal annual instalments over their
expected useful lives. The periods generally applicable are:
Buildings 40 years
Mining plant and equipment 3-15 years
Office equipment, fixtures and fittings 3 years
Foreign currencies
Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction or at the
contracted rate if the transaction is covered by a forward exchange contract. Monetary assets and
liabilities denominated in foreign currencies are retranslated at the rate of exchange ruling at the balance
sheet date or if appropriate at the forward contract rate and differences taken to the translation reserve.
The accounts of overseas subsidiary undertakings are translated at the rate of exchange ruling at the balance
sheet date. The exchange difference arising on the retranslation of opening net assets are eliminated
against reserves. All other translation differences are taken to the profit and loss account.
Exploration and evaluation expenditure
Exploration and evaluation expenditure incurred is accumulated in respect of each identifiable area of
interest. These costs are only carried forward to the extent that they are expected to be recouped through
the successful development of the area or where activities in the area have not yet reached a stage that
permits reasonable assessment of the existence of economically recoverable reserves. Accumulated costs in
relation to an abandoned area are written off in full against the result in the year in which the decision to
abandon the area is made.
A regular review is undertaken of each area of interest to determine the appropriateness of continuing to
carry forward costs in relation to that area of interest.
When a reasonable assessment of the existence of economically recoverable reserves is possible, the
accumulated costs for the relevant area of interest are reallocated into development expenditure.
Development expenditure
When the technical and commercial feasibility of an area of interest has been demonstrated and the appropriate mining
licence has been issued, the area of interest enters its development phase. The accumulated costs are transferred from
exploration and evaluation expenditure and reclassified as Development Expenditure.
Once mining commences the asset is amortised on a depletion percentage basis. Provision is made for impairments to the
extent that the asset's carrying value exceeds its net recoverable amount.
Share Capital
Ordinary shares are classified as equity.
Incremental costs directly attributable to the issue of new shares are shown in equity as a deduction from
share premium from the proceeds.
Finance Leases
Assets held under finance leases and other similar contracts, which confer rights and obligations similar to
those attached to owned assets are capitalized as tangible fixed assets and depreciated over the shorter of
the lease terms and their useful lives. The capital elements of future lease obligations are recorded as
liabilities, while the interest elements are charged to the profit and loss account over the period of the
lease, to produce a constant rate of charge on the balance of capital repayments outstanding.
2. EARNINGS PER SHARE
Six months Six months
ended ended
30 June 2007 30 June 2006
Basic loss per share (0.52p) (0.41p)
======= =======
The calculation of basic loss per share is based on a loss for the period of #481,268 (2006: #374,795) and
91,692,107 ordinary shares (2006: 91,657,663 ordinary shares), being the weighted average number of ordinary
shares in issue during the period.
There is no dilutive effect of share options or warrants.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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