| | Publié le 28 avril 2008 | Preliminary results for the year ended 31 October 2007 |
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Article
|
Commentaires
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Commenter
|
Notation
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♥
Suivre la société
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Date: 28
April 2008
On behalf of: Target
Resources plc (“Target”
or the “Company”)
Target Resources plc
Preliminary Results for the year ended 31 October
2007
Target Resources
plc (AIM: TGT), the alluvial diamond and gold mining company operating in
Sierra Leone, is pleased to announce its preliminary final results
for the full year ended 31 October 2007. Target operates through its
subsidiary Milestone Trading Ltd (“Milestone”) and its Sierra Leone
subsidiaries (together the “Group”). The Group’s mining
leases are all located within the Kono district, which is recognised as the
most prospective area for diamond mining in Sierra Leone. Milestone also
has exclusive prospecting licences in other areas.
Sierra Leone is a major
producer of gem quality diamonds. It has been responsible for mining of some of
world’s most impressive diamonds. The Group is among the first large
scale mining ventures to be established in Sierra Leone since the end of the
civil war.
Target’s main
objective is the recovery of alluvial diamonds and gold in Sierra Leone,
and their sale on world markets.
Group Highlights
·
Admitted
to AIM in July 2006 raising funds to expand operations.
·
Milestone
has successfully entered into joint venture agreements with the Chiefdoms in Sierra Leone
specifically in the Chiefdoms of Sandoh, Nimikoro & Nimiyama.
·
The
Group has 4,263 acres (17.25 km2) under mining leases in the rich
diamond and gold area of Kono, recognised as the most prospective area for
diamond mining in Sierra
Leone.
·
The
Group’s first corporate acquisition completed with the acquisition of
Pride Diamonds, LLC (“Pride Diamonds”) in March 2007.
·
In
October 2007, Target raised £7.7 million net of costs in equity and long
term debt, contracted new mining management and signed a 10 year, first
refusal, marketing agreement with a subsidiary of Tiffany & Co for the sale
of its diamond production.
·
In
January 2008, Target acquired two new exclusive prospecting licences. One is
for gold and other minerals in the Tonkolili district covering 520 Sq km and
the other for diamonds and gold in Kenema district (known for its
“fancy” diamonds), covering 253 Sq km.
·
In April
2008, Target raised a further £1.5 million in equity and short term debt
to be used in its new prospecting licences and for working capital.
Commenting on the Company’s results,
Freddy Hager, Chairman, said:
“We are encouraged by the progress
our team has made over the financial period and we look forward to putting our
enhanced earthmoving, dredging and processing capacity to work to ratchet up
production in the coming months. We are on track to deliver our mining plan and
maximise the full potential of our leases in Sierra Leone for our
investors.”
- ENDS -
Enquiries:
Target Resources plc
020
7258 2300
Dr Nissim Levy, Managing Director www.target-resources.co.uk
Nominated Adviser & Broker
Arbuthnot Securities 020
7012 2000
John Prior
Financial PR to Target
Redleaf Communications 020
7822 0200
Emma Kane / Adam Leviton /
Henry Columbine al@redleafpr.com
Investor Relations
4C Communications Limited 020 8949
7171
Carina Corbett
----------------------------------------------------------------------------------------------------------------
CHAIRMAN’S
STATEMENT
FOR THE YEAR ENDED
31 OCTOBER 2007
I am pleased to present this
year’s review of the Group’s operations. In October 2007
Target raised net proceeds of £7.7 million in equity and debt
financing, which are being used to fund the purchase of new equipment for
diamond and gold production and working capital. The Company also
contracted a 10 year marketing agreement with Tiffany & Co, the renowned
jewellers, whereby Target’s diamond output will be offered on a first
refusal basis to Tiffany.
The year has been challenging for the
Group with revenues from the mining of diamonds of just £412,175.
The level of mining activity conducted within the year was low due to the
transition period between the failure of the previous mining contractors to
mine and process agreed tonnages of gravel and the contracting of new mining
management under the umbrella of Minex Associates Group. However, notable
progress has been made and we look forward with optimism.
During the year under review, the
Group had mining leases covering 4,263 acres in 3 chiefdoms in the Kono
district of Sierra Leone as follows:
·
1,787 acres in
Sandoh
·
1,495 acres in
Nimiyama
·
981 acres in
Nimikoro
·
This gives a total
leased area of 4,263 acres, or 17.25 Sq km.
These mining leases are each held by
a local operating subsidiary of the Group. Joint Venture Agreements have been
signed with the respective Chiefdoms under which (in the case of Nimiyama and
Nimikoro) the Group has 70% of the shares and the profits of the subsidiary and
the Chiefdom 30%. In the case of Sandoh, where we are currently mining, the
Chiefdom has 11% of the official export value of diamonds, instead of a profit
share.
In the year under review, Target
issued shares amounting to US$1.6 million in March 2007 in connection with the
acquisition of Pride Diamonds LLC, and raised £5.2 million (net of costs)
through a placing of shares in October 2007. These funds, together with US$5
million raised as debt finance from a subsidiary of Tiffany & Co (as
explained below), are being utilised by the Group to finance plant and
machinery purchases, provide working capital and repay a proportion of its
debt.
For the year ended 31 October 2007,
the Group generated turnover of £412,175 (2006 – £266,456)
which resulted in a loss before tax of £5,251,397 (2006 –
£4,383,942). The loss per share is 5.84p (2006 – 5.95p). The Group
had cash balances at the year end of £6,066,239 (2006 -
£1,052,563).
The period was transitional between
the departure of the non-performing previous mining contractor, The Three
Captains Ltd, who stopped operations in August 2006, and the appointment of a
new mining management team recruited by Minex Associates Group in November
2007. In the interim, the Company continued independent mining but at the same
time realised the need for additional equipment, to allow it to increase output
and to open further mining sites elsewhere in its leased areas. The fundraising
in late October 2007 brought £5.2 million to the Group for purchasing
further processing plant, earthmoving and exploration equipment. As of
the date of this statement, all the necessary equipment has been purchased and
the last items will be commissioned on site by June 2008.
The new mining management, which was
appointed in November, includes professionals in project management, process engineering,
metallurgy, river dredging and geology / geo-physics, who compliment the Company’s
existing staff.
Active prospecting using an
innovative technique known as “Resonance Acoustic Penetration
Profiling” is now underway. The process identifies potholes and
depressions in rock bars where diamond bearing gravels are usually
located. Drilling with an auger drill and banka drills has also started,
allowing us to locate and map actual gravels.
We are encouraged by the size and
quality of the diamonds produced in the Group’s mining areas to date, an
average sale price per carat of US$507 has been achieved. Exports of diamond
output are delivered to Laurelton Ltd, an Antwerp
based division of Tiffany & Co, under the 10 year marketing agreement
signed in October 2008. All our diamonds are fully certified under the
Kimberley Process.
A further optimistic development in
2007 has been the added value of river dredging in addition to land mining. In March
2007, Target acquired Pride Diamonds, LLC, a US incorporated company with small
scale river dredging capability. Following the fundraising in October 2007,
Target invested part of the proceeds in ordering a cutter head dredge which
will allow the rivers within our lease areas to be dredged on a large scale for
diamonds and gold, during the wet as well as the dry season. Dredging is
expected to make a substantial contribution to fulfilling the Group’s
mining targets in 2008/9.
Target also expects gold production
to contribute a sizeable income in future from both land and dredge mining.
A special achievement for our Group
is the strategic alliance with Tiffany & Co, one of the world’s
largest and most respected jewellery retailers. As part of our October 2007
fundraising, Laurelton Diamonds, Inc (“Laurelton”), a subsidiary of
Tiffany & Co, advanced a long term loan of US$5 million to the Group in
return for an exclusive, first refusal, 10 year marketing agreement for
Target’s diamond output. This alliance shows the confidence of this
ethically conscious retailer in our Group, both for the quality of our stones
and the corporate social responsibility policies which we implement. In April
2008, Laurelton made a further short term advance of US$2 million to Target and
an affiliate of Laurelton invested US$1 million in new shares of Target.
Exclusive Prospecting Licences (EPL)
were granted in January 2008 as follows:
1.
EPL
for Gold and other minerals covering 520.45 sq. km (200.94 sq.
miles) in the Tane and Gbonkolenken Chiefdoms in the Tonkolili District of the
Northern Province of Sierra Leone (“Northern Province”). This
licence lies between the Kangari Hills on its east side and the Pampana and Nasi Rivers
on its west and north side with the Teye
River running near its
southern boundary.
The recovery of
alluvial gold from this area by small scale miners commenced in the 1930s and
is still ongoing under the Government Supervised Artisanal Gold Mining
Scheme. The Pampana, Wungi and Teye
Rivers have been proven
to contain interesting concentrations of alluvial gold in their channels,
flanking flats and terraces.
The licence area
covers part of the largest greenstone belt in Sierra Leone, which is recognised
as being highly prospective for gold. This is supported by a United Nations
funded sampling programme in the headwaters of the Nasi River
in the 1980s, which highlighted a number of primary gold anomalies in the area.
2.
EPL
for Diamonds, Gold and other precious minerals and metals
covering 253.57 sq. km (97.88 sq. miles) in Faiyama Area, Nomo Chiefdom, Kenema
District in the Eastern Province of Sierra Leone.
This licence lies
along a 30 mile length of the Moro River which forms the border with Liberia in the south east of Sierra Leone.
It was previously held by Gondwana Investments SA but was not explored. The
full width of the river is included within the licence.
This area is known
for coloured or so-called “fancy” diamonds, which gain high market
value. These diamonds have been and are still being recovered in the
Makpele Chiefdom downriver from the licence area, and are thought to be derived
from a primary source different from those known in the Kono and Tongo fields.
The presence of
primary diamond sources (kimberlites) has been revealed by recent work on the
land across the Moro River in Liberia, by Mano River Resources
Inc.
The Group intends to start
prospecting of the new licences shortly.
Target continues to foster good
relations with the people living on its leased areas by giving help to local
communities. We have built and handed over three schools to the people of the
Kono district, and have helped with the construction of roads in Sandoh
Chiefdom. We employ on average some 200 local people, paying a fair wage and
observing a policy of gender equality. Rehabilitation of previously mined areas
has been largely completed..
The directors remain focused on the
development and growth of the business, and on achieving sustainable mining
operations at an early date.
Freddy Hager
Chairman
-----------------------------------------------------------------------------------------------------------------
DIAMOND MINING IN
SIERRA LEONE
Sierra Leone is a major producer
of gem quality diamonds. It has been responsible for mining of some of
world’s most impressive diamonds, including the Star of Sierra Leone, a
magnificent 969 carat diamond.
Target’s
licences are mainly located within the Kono district, which is recognised as
the most prospective area for diamond mining in Sierra Leone.
Sierra Leone
Sierra Leone was a
founder member in the Kimberley Process Certification Scheme (KPCS) which was
established to discourage the marketing of blood diamonds. The scheme, which is
being scrutinised and improved by the Government, ploughs back some of the
revenues derived from diamond exports to the individuals and communities
involved in the mining areas.
The KPCS
scheme has continued to impact positively on the diamond mining sector in Sierra Leone.
Chiefdoms
In Sierra Leone
each district contains a number of Chiefdoms. The Chiefs are the traditional
rulers of Sierra Leone.
Whilst mining licences are issued by the Ministry of Mineral Resources, mineral
rights may not be exercised without the express permission of the landowner,
typically the Chiefdoms. Target has forged strong alliances with the Chiefdoms
upon which its Mining Leases lie, specifically the Sandoh, Nimikoro and
Nimiyama Chiefdoms. The Chiefdoms are partners in Target’s operating
subsidiaries.
The country
has been peaceful for over 6 years and the democratically elected government
under President Ernest Bai Koroma is anxious to encourage foreign investment to
re-start the economy. The British Government has a long term commitment to the
stability of the country. To this end the British Armed Forces continue to
maintain a strong presence in the country training and working closely with the
Sierra Leone Army.
Alluvial diamond
mining
Current
theory suggests that diamonds are formed under high pressure and high
temperature conditions deep within the earth’s crust. The diamonds are
brought to the surface with other rock material in volcanic pipes which
solidify to form kimberlite or lamproite pipes. Alluvial diamond deposits are
formed from the erosion, over millions of years, of the relatively soft primary
diamond bearing kimberlite and lamproite source rocks.
The eroded
material is transported by river systems, with the diamonds being deposited in
the gravel beds of the rivers or, ultimately, in the ocean. Due to their
hardness, diamonds are relatively unaffected by the erosion process, and tend
to accumulate and be naturally concentrated in favourable areas for their
deposition, while the typically softer and lighter surrounding rock material is
washed out to sea.
Sierra
Leone’s predominantly alluvial sourced diamond production contrasts with
other major diamond producing countries (e.g. South Africa, Botswana, Russia
and Australia) whose production is predominantly from kimberlite and lamproite
pipes. Other countries that have significant alluvial diamond production
include Namibia, Brazil, South
Africa and Congo.
The directors
believe that alluvial diamond projects have a number of important benefits,
including:
·
alluvial
diamond exploration can be conducted rapidly and at relatively low cost
compared with kimberlite and lamproite exploration;
·
alluvial
diamond deposits typically have a higher proportion of gem quality diamonds
than kimberlites (as the erosion and transportation process tends to destroy
lower quality diamonds);
·
development
of reserves requires relatively low level of capital investment; and
·
positive
cash flow can often be achieved quickly from the commencement of production.
----------------------------------------------------------------------------------------------------------------------------------------
CONSOLIDATED INCOME
STATEMENT
FOR THE YEAR ENDED
31 OCTOBER 2007
|
|
|
|
|
2007
|
2006
|
|
|
|
|
Notes
|
£
|
£
|
|
Continuing
operations
|
|
|
|
|
|
Group turnover
|
|
|
412,175
|
266,456
|
|
Cost of sales:
|
|
|
|
-
|
|
Depreciation & amortisation
|
|
|
(710,009)
|
(243,701)
|
|
Operating expenses
|
|
|
(1,942,607)
|
(1,347,876)
|
|
Total cost of sales
|
|
|
(2,652,616)
|
(1,591,577)
|
|
Gross loss
|
|
|
|
(2,240,441)
|
(1,325,121)
|
|
Administrative expenses before exceptional items
|
|
|
(2,114,143)
|
(1,400,663)
|
|
Share based payments
|
|
2
|
(807,454)
|
(1,542,577)
|
|
Total administrative expenses
|
|
|
(2,921,597)
|
(2,943,240)
|
|
Group operating
loss
|
|
|
(5,162,038)
|
(4,268,361)
|
|
Finance costs - net
|
|
|
|
(89,359)
|
(115,581)
|
|
Loss before tax
|
|
|
(5,251,397)
|
(4,383,942)
|
|
Taxation
|
|
|
|
-
|
(72,500)
|
|
Loss for the year
|
|
|
(5,251,397)
|
(4,456,442)
|
|
Attributable to:
|
|
|
|
|
|
Equity holders of the Company
|
|
(5,248,325)
|
(4,435,693)
|
|
Minority interests
|
|
|
(3,072)
|
(20,749)
|
|
|
|
|
|
(5,251,397)
|
(4,456,442)
|
|
Loss per share
(pence)
|
|
3
|
|
|
|
Basic
|
|
|
|
(5.84)
|
(5.95)
|
|
Diluted
|
|
|
|
(5.84)
|
(5.95)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED
BALANCE SHEET
AS AT 31 OCTOBER
2007
|
|
|
|
2007
|
2006
|
|
|
|
Notes
|
£
|
£
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
Non-current assets
|
|
|
|
|
|
Goodwill
|
|
4
|
1,003,442
|
-
|
Other intangible
assets
|
|
5
|
642,857
|
787,520
|
Plant and
equipment
|
|
6
|
877,096
|
1,214,520
|
|
|
|
|
2,523,395
|
2,002,040
|
Current assets
|
|
|
|
|
Trade and
other receivables
|
|
|
157,938
|
22,956
|
Cash and
cash equivalents
|
|
|
|
6,066,239
|
1,052,563
|
|
|
|
|
6,224,177
|
1,075,519
|
Total Assets
|
|
|
|
8,747,572
|
3,077,559
|
LIABILITIES
|
|
|
|
|
|
Non-current liabilities
|
|
|
|
|
Borrowings
|
|
|
2,422,950
|
–
|
Provision
for liabilities and charges
|
|
|
1,087,006
|
122,551
|
Licence
fees payable
|
|
|
160,338
|
236,934
|
|
|
|
|
3,670,294
|
359,485
|
Current liabilities
|
|
|
|
|
|
Trade and
other payables
|
|
|
1,429,739
|
916,232
|
Borrowings
|
|
|
|
1,308,393
|
942,514
|
|
|
|
|
2,738,132
|
1,858,746
|
Total Liabilities
|
|
|
6,408,426
|
2,218,231
|
Net Assets
|
|
|
2,339,146
|
859,328
|
EQUITY
|
|
|
|
|
|
Capital
and reserves attributable to
equity holders
|
|
|
|
Share
capital
|
|
|
|
1,183,755
|
867,593
|
Share
premium
|
|
|
14,213,115
|
9,254,171
|
Other
reserves
|
|
|
2,205,113
|
1,053,464
|
Retained
losses
|
|
|
(15,127,046)
|
(10,183,181)
|
|
|
|
|
2,474,937
|
992,047
|
Minority interest
|
|
|
(135,791)
|
(132,719)
|
Total Equity
|
|
|
2,339,146
|
859,328
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2007
|
|
Share capital
|
Share premium
|
Other reserves
|
Retained losses
|
Minority interest
|
Total
equity
|
|
|
£
|
£
|
£
|
£
|
£
|
£
|
Year ended 31
October 2006
|
|
|
|
|
|
At 1 November 2005
|
|
600,000
|
-
|
(409,011)
|
(5,747,488)
|
(112,278)
|
(5,668,777)
|
Issue of share capital
|
|
267,593
|
10,396,038
|
-
|
-
|
-
|
10,663,631
|
Share issue costs
|
-
|
(1,141,867)
|
-
|
-
|
-
|
(1,141,867)
|
Translation differences on re-translation of Group’s
subsidiaries
|
-
|
-
|
(29,288)
|
-
|
-
|
(29,288)
|
Minority’s interest in the
share capital
|
|
|
|
|
of a subsidiary undertaking
|
-
|
-
|
-
|
-
|
308
|
308
|
Share based payments
|
|
-
|
-
|
1,491,763
|
-
|
-
|
1,491,763
|
Loss for 2006
|
-
|
-
|
-
|
(4,435,693)
|
(20,749)
|
(4,456,442)
|
Balance at 31 October 2006
|
|
867,593
|
9,254,171
|
1,053,464
|
(10,183,181)
|
(132,719)
|
859,328
|
|
|
|
|
|
|
|
Year ended 31
October 2007
|
|
|
|
|
|
|
At 1 November 2006
|
867,593
|
9,254,171
|
1,053,464
|
(10,183,181)
|
(132,719)
|
859,328
|
Issue of share capital
|
316,162
|
5,333,333
|
794,155
|
-
|
-
|
6,443,650
|
Share issue costs
|
-
|
(374,389)
|
-
|
-
|
-
|
(374,389)
|
Translation difference on re-translation of Group’s
subsidiaries
|
-
|
-
|
(145,500)
|
-
|
-
|
(145,500)
|
Share based payments
|
-
|
-
|
807,454
|
-
|
-
|
807,454
|
Transfer on exercise of share options
|
-
|
-
|
(304,460)
|
304,460
|
-
|
-
|
Loss for 2007
|
-
|
-
|
-
|
(5,248,325)
|
(3,072)
|
(5,251,397)
|
Balance at 31 October 2007
|
1,183,755
|
14,213,115
|
2,205,113
|
(15,127,046)
|
(135,791)
|
2,339,146
|
The Group’s
other reserves comprise the following:
|
2007
£
|
|
2006
£
|
|
|
|
|
Merger reserve
|
194,255
|
|
(599,900)
|
Share-based payments reserve
|
2,111,175
|
|
1,608,181
|
Currency translation reserve
|
(100,317)
|
|
45,183
|
|
2,205,113
|
|
1,053,464
|
CONSOLIDATED CASH
FLOW STATEMENT
FOR THE YEAR ENDED
31 OCTOBER 2007
|
2007
|
2006
|
|
|
|
|
£
|
£
|
Cash used in operations
|
|
(3,337,306)
|
(2,375,600)
|
Interest paid
|
|
|
|
(203,275)
|
(143,077)
|
Net cash used in operating
activities
|
|
(3,540,581)
|
(2,518,677)
|
Investing
activities
|
|
|
|
Purchase of plant and equipment
|
|
(13,948)
|
(595,262)
|
Exploration costs incurred
|
|
|
(80,068)
|
(270,264)
|
Costs of acquisition of subsidiary
|
|
|
(32,469)
|
-
|
Cash acquired with subsidiary
|
|
|
511,032
|
-
|
Interest received
|
|
|
113,916
|
27,496
|
Net cash from/(used in) investing
activities
|
|
498,463
|
(838,030)
|
Financing
activities
|
|
|
|
Proceeds from issue of shares
|
|
5,626,000
|
5,584,833
|
Share issue costs
|
|
(374,389)
|
-
|
Loans obtained/(repaid)
|
|
2,788,829
|
(1,162,806)
|
Net cash from financing activities
|
|
8,040,440
|
4,422,027
|
Increase in cash
and cash equivalents
|
4,998,322
|
1,065,320
|
Cash and
cash equivalents at beginning of the year
|
|
|
1,052,563
|
16,531
|
Exchange rate effects
|
|
|
15,354
|
(29,288)
|
Cash and cash
equivalents at the end of the year
|
6,066,239
|
1,052,563
|
|
|
|
|
|
|
|
NOTES TO THE PRELIMINARY
RESULTS
FOR THE YEAR ENDED
31 OCTOBER 2007
1. Introduction
Target Resources
plc is a public limited company listed on the Alternative Investment Market
(“AIM”) of the London Stock Exchange and incorporated in England.
The Group’s
financial statements for the year ended 31 October 2007, from which this
financial information has been extracted, and for the comparative year ended 31
October 2006 are prepared in accordance with International Financial Reporting
Standards (“IFRS”), including IFRS 6 ‘Exploration for and
Evaluation of Mineral Resources’ and in accordance with those parts of
the Companies Act 1985 applicable to companies reporting under IFRS.
The financial
information contained in these preliminary results does not constitute full
statutory accounts within the meaning of Section 240 of the Companies Act
1985. The figures are extracted from the Group financial statements for
the year ended 31 October 2007 which have been agreed with the Company’s
auditors and will be filed with the Registrar of Companies, sent to shareholders
and will be available on the Company’s website at www.target-resources.co.uk
following formal completion of the audit. The auditors’ report on the
full financial statements for the year ended 31 October 2007 is yet to be
signed.
The comparative
figures for the year ended 31 October 2006 are not the statutory accounts for
that financial period. Those accounts have been reported on by the Company's
auditors and delivered to the Registrar of Companies. The report of the
auditors was (i) unqualified, (ii) did not include a reference to any matters
to which the auditors drew attention by way of emphasis without qualifying
their report, and (iii) did not contain a statement under section 237(2) or (3)
of the Companies Act 1985.
2. Share
Based Payments
|
2007
|
2006
|
|
£
|
£
|
The Group recognised the following
charge in the income statement
|
in respect of its share based
payment plans:
|
|
|
IFRS 2
|
807,454
|
1,491,763
|
Employer’s national
insurance
|
-
|
50,814
|
|
807,454
|
1,542,577
|
The above charges
are based on the requirements of IFRS 2 on share based payments. For this
purpose, the weighted average estimated fair value for the share options
granted was calculated using a Black-Scholes option pricing model in respect of
options. The volatility measured at the standard deviation of expected share
price return is based on statistical analysis of the share price since the
Company’s admission to Alternative Investment Market (“AIM”)
and this has been calculated at 90%. The risk free rate has been taken at
5.50%. The estimated fair values and other details which have been processed
into the model are as follows:
Number of options
|
Grant date
|
Option price
|
Fair value
|
Expected exercise
date
|
5,162,726*
|
6 July 2006
|
50p
|
31p
|
6 July 2016
|
500,000*
|
21 September 2006
|
50p
|
31p
|
21 September 2016
|
1,111,111
|
2 August 2007
|
22.5p
|
14p
|
24 October 2010
|
500,000
|
21 August 2007
|
22.5p
|
15p
|
21 August 2011
|
*
Except for these options which have a vesting period of three years, no other
options have any vesting period. The charge for national insurance on share
based payments has been calculated by reference to the difference between the
market value of the underlying shares at the balance sheet date and the
exercise price of options. The accumulated reserves under IFRS 2 and the
accumulated national insurance provision as at 31 October 2007 were
£2,111,175 and £122,551 respectively.
3. Loss Per Share
The basic loss per
ordinary share has been calculated using the loss for the financial year attributable
to the Company’s equity shareholders of £5,248,325 (2006: £4,435,693)
and the weighted average number of ordinary shares in issue of 89,864,590
(2006: 74,876,210).
The diluted loss
per share has been calculated using a weighted average number of shares in
issue and to be issued of 92,610,619 (2006: 79,426,646). The diluted loss per
share has been kept the same as the basic loss per share as the conversion of
share warrants and options decreases the basic loss per share, thus being
anti-dilutive.
4. Goodwill
The Group’s
goodwill of £1,003,442 arose from the acquisition of 100% of the issued
share capital of Pride Diamonds LLC (“Pride”) in March 2007. Pride
is incorporated in Delaware, USA, operates in Sierra Leone and owns specialised
river dredging equipment. The acquisition of Pride has been accounted for using
the purchase method (“acquisition method”). Details of the
acquisitions are set out below:
|
£
|
Book and fair
value of net assets acquired:
|
|
Mining and other equipment
|
306,618
|
Cash at bank
|
511,032
|
Net assets acquired
|
817,650
|
Goodwill arising on acquisition
|
1,003,442
|
Total consideration for acquisition
|
1,821,092
|
|
|
Satisfied by:
|
|
|
|
Issue of 2,349,570 shares at 34.8p
per share
|
817,650
|
Deferred consideration to be paid
in cash
|
970,973
|
Costs of acquisition
|
32,469
|
|
1,821,092
|
The initial
consideration for the acquisition of Pride was US$1,600,000 (£817,650),
satisfied by the issue of 2,349,570 new ordinary shares of 1p each in Target at
34.8p per share. A deferred consideration is payable in cash to the vendors of
Pride based on 3 per cent of the Group’s future diamond sales, capped at
US$1,900,000 (£970,973).
5. Other
Intangible Assets
|
|
Deferred
|
Mining
|
Rehabilitation
|
Total
|
|
|
exploration
|
licences
|
costs
|
|
|
|
£
|
£
|
£
|
£
|
Cost
|
|
|
|
|
|
At 1 November 2005
|
123,721
|
30,495
|
108,349
|
262,565
|
Additions in 2006
|
-
|
480,391
|
97,859
|
578,250
|
At 1 November 2006
|
123,721
|
510,886
|
206,208
|
840,815
|
Additions in 2007
|
|
80,068
|
-
|
-
|
80,068
|
Exchange differences
|
|
(9,928)
|
(40,998)
|
(16,548)
|
(67,474)
|
At 31 October
2007
|
193,861
|
469,888
|
189,660
|
853,409
|
Amortisation
|
|
|
|
|
|
At 1 November 2005
|
13,609
|
3,354
|
11,918
|
28,881
|
Charge for 2006
|
4,685
|
1,155
|
18,573
|
24,413
|
At 1 November 2006
|
18,294
|
4,509
|
30,491
|
53,294
|
Charge for 2007
|
-
|
-
|
161,640
|
161,640
|
Exchange differences
|
(1,481)
|
(430)
|
(2,471)
|
(4,382)
|
At 31 October
2007
|
16,813
|
4,079
|
189,660
|
210,552
|
Net book values
|
|
|
|
|
At 31 October
2007
|
177,048
|
465,809
|
-
|
642,857
|
At 31 October 2006
|
105,427
|
506,377
|
175,717
|
787,521
|
The costs for
mining licences includes a sum of £390,829 (US$750,000) for the
acquisition of mining licences during 2006, payable over a period of five
years. Of this amount £159,439 has been paid to date by 31 October 2007,
£71,052 is included in other payables, payable in the next financial year
and £160,338 is payable after more than one year.
There have been no
amortisation charges on deferred exploration and mining licences this year as
the accumulated amortisation brought forward equates to the total amortisation
as at 31 October 2007 in respect of these assets based on the Group’s
accounting policy.
6. Plant and Equipment
|
Mining
equipment
plant and
machinery
|
Cabin and
associated
setup costs
|
Motor
vehicles
|
Fixtures
and
fittings
|
Total
|
|
|
|
|
|
£
|
£
|
£
|
£
|
£
|
|
Cost
|
|
|
|
|
|
|
At 1 November 2005
|
-
|
-
|
-
|
-
|
-
|
|
Additions in 2006
|
1,256,340
|
64,727
|
65,753
|
46,987
|
1,433,807
|
|
At 1 November 2006
|
1,256,340
|
64,727
|
65,753
|
46,987
|
1,433,807
|
|
Acquired with subsidiary
|
235,223
|
671
|
21,390
|
49,334
|
306,618
|
|
Additions in 2007
|
11,478
|
2,470
|
-
|
-
|
13,948
|
|
Exchange differences
|
(171,093)
|
(8,370)
|
(9,257)
|
(7,301)
|
(196,021)
|
|
At 31 October 2007
|
1,331,948
|
59,498
|
77,886
|
89,020
|
1,558,352
|
|
Depreciation and impairment
|
|
|
|
|
|
|
At November 2005
|
-
|
-
|
-
|
-
|
-
|
|
Charge for 2006
|
203,506
|
6,423
|
5,380
|
3,978
|
219,287
|
|
At 1 November 2006
|
203,506
|
6,423
|
5,380
|
3,978
|
219,287
|
|
Charge for 2007
|
497,080
|
13,566
|
16,698
|
21,025
|
548,369
|
|
Exchange differences
|
(79,675)
|
(2,402)
|
(2,384)
|
(1,939)
|
(86,400)
|
|
At 31 October 2007
|
620,911
|
17,587
|
19,694
|
23,064
|
681,256
|
|
Net Book Values
|
|
|
|
|
|
|
At 31 October 2007
|
711,037
|
41,911
|
58,192
|
65,956
|
877,096
|
|
At 31 October 2006
|
1,052,834
|
58,304
|
60,373
|
43,009
|
1,214,520
|
|
7. Events After The Balance Sheet Date
On 4 January 2008,
Target acquired the following Exclusive Prospecting Licences
(“EPL”) at a direct cost of $92,280, each for a term of two years
from 31 December 2007:
·
The first EPL is
for Gold and other minerals covering 520.45 sq. km (200.94 sq. miles) in the
Tane and Gbonkolenken Chiefdoms in the Tonkolili District of the Northern
Province of Sierra Leone (“Northern
Province”).
·
The second EPL is
for Diamonds, Gold and other precious minerals and metals covering 253.57 sq.
km (97.88 sq. miles) in Faiyama Area, Nomo Chiefdom, Kenema District in the
Eastern Province of Sierra Leone.
On 22 April 2008,
Laurelton Diamonds, Inc (a subsidiary of Tiffany & Co (NYSE:TIF)) provided
Target with a US$2,000,000 short term debt financing, and an affiliate of
Laurelton Diamonds, Inc acquired 3,350,084 new ordinary shares in Target
at a price of 15p per share.
8. Dividends
No
dividends are proposed in respect of the current financial year.
9. Annual
General Meeting
The Annual General
Meeting of Shareholders will take place at 11:00 am on 11 June 2008 at the
offices of Arbuthnot Securities Limited, Arbuthnot House, 20 Ropemaker Street, London
EC2Y 9AR. All
shareholders are welcome to attend. A copy of the Annual Report and Financial
Statements will be sent to shareholders and will also be available on the
Company’s website: www.target-resources.co.uk
|
Target Resources
|
|
|
CODE : TGT.L |
|
|
| |
ProfilIndicateurs de MarchéVALEUR : Projets & res.Communiqués de PresseRapport annuelRISQUE : Profile actifsContactez la cie |
Target Resources est une société d’exploration minière d'or basée au Royaume-Uni. Target Resources est cotée au Royaume-Uni. Sa capitalisation boursière aujourd'hui est 135,8 millions GBX (202,8 millions US$, 137,8 millions €). La valeur de son action a atteint son plus haut niveau récent le 01 août 2008 à 7,75 GBX, et son plus bas niveau récent le 23 octobre 2009 à 0,50 GBX. Target Resources possède 123 470 433 actions en circulation. |
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Publication de commentaires terminée |
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