Norseman Gold operates Australia's longest continuously running gold mining operation, having produced over 5.5 million ounces of gold over a period of more than 65 years from its Norseman field located 725km east of Perth, Western Australia.
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News
Interim results for the 6 month period ended 31 December 2006
21 March 2007
Davos Resources PLC
21 March 2007
DAVOS RESOURCES PLC
('Davos' or the 'Company')
Interim results for the 6 month period ended 31 December 2006
Chairman's Statement
The Company was admitted to AIM on 23 October 2006 with a strategy of developing
the exploration programme at the Pine Creek Tenement and making acquisitions in
the natural resources sector.
The interim report covers the period from 1 July 2006 to 31 December 2006 and
includes details of the proposed acquisition of CNGC announced on 10 January
2007.
David Steinepreis
Chairman
Contacts:
David Steinepreis Davos Resources Plc 07913 402727 (U.K.)
Olly Cairns/ Romil Patel Corporate Synergy Plc 020 7448 4400
Unaudited Interim Financial Information of Davos Resources plc
The following interim financial information of Davos Resources plc is for the
period from 1 July 2006 to 31 December 2006.
CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE PERIOD ENDED 31 DECEMBER 2006
Consolidated Company
(Unaudited) (Unaudited)
period ended period ended
31 December 2006 31 December 2006
£ £
Exploration expenditure written off (26,475) -
Administrative expenses (88,979) (73,197)
Loss on ordinary activities before interest (115,154) (73,197)
Interest receivable 2,720 2,636
Loss on ordinary activities before taxation (112,434) (70,561)
Taxation - -
Loss on ordinary activities after taxation (112,434) (70,561)
CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2006
Consolidated Company
(Unaudited) (Unaudited)
31 December 2006 31 December 2006
Note £ £
Fixed assets
Intangible assets 2 30,000 -
Current assets
Debtors 3 2,151 52,660
Capitalised costs - acquisition of Central
Norseman Gold Corporation 48,591 48,591
Cash at bank and in hand 421,581 411,475
472,323 512,726
Creditors: amounts falling due within one year 4 89,700 56,833
Net current assets 382,623 455,893
Total assets less current liabilities 412,623 455,893
Net assets
412,623 455,893
Capital and reserves
Called up share capital 5 (b) 137,500 137,500
Share premium account 5 (c) 388,890 388,890
Profit and loss account (113,767) (70,497)
Shareholders' funds 412,623 455,893
CONSOLIDATED CASH FLOW STATEMENT
FOR THE PERIOD ENDED 31 DECEMBER 2006
Consolidated Company
(Unaudited) (Unaudited)
period ended period ended
31 December 2006 31 December 2006
£ £
Net cash outflow from operating activities (78,344) (64,891)
Returns on investments and servicing of finance
Interest income 2,720 2,636
(75,624) (62,255)
Acquisitions
Net funds invested in exploration (57,572) -
Net cash outflow from acquisitions (57,572) -
Net cash outflow before financing (133,196) (62,255)
Financing
Loan to subsidiary - (52,660)
Loan from Ascent Capital Holdings Pty Ltd 28,387 -
Proceeds from issue of shares 715,000 715,000
Costs of the issue of shares (188,610) (188,610)
Net cash inflow from financing 554,777 473,730
Increase in cash 421,581 411,475
NOTES TO THE FINANCIAL INFORMATION
1. Accounting policies
Accounting convention
The financial information has been prepared under the historical cost
convention.
Compliance with accounting standards
The financial information has been prepared in accordance with the applicable
United Kingdom Accounting Standards (United Kingdom Generally Accepted
Accounting Practice), which have been applied consistently.
Mineral rights and reserves
The company follows the 'full cost' method of accounting for the costs
associated with exploration, appraisal, development and production of mineral
reserves. Evaluated mineral assets are held in separately designated
geographical cost pools. The costs of acquisition of property (including rights
and concessions), geological and geophysical costs, costs of field production
facilities, and plant and equipment are classified as tangible assets if they
relate to proved and probable mineral properties.
All costs associated with property acquisition, exploration and development are
capitalised regardless of whether they result in commercial discoveries or not.
Producing mineral assets are depleted by pool on a unit of production method in
the proportion of actual production for the period to the total remaining
commercial reserves. Reserves are those estimated at the end of the period plus
production during the period. For depletion purposes only, the cost base
includes costs of capital assets and anticipated future development expenditure.
Pre-licence acquisition, exploration and appraisal costs of individual licence
interests are held outside cost pools until the existence or otherwise of
commercial reserves is established. These costs remain undepreciated as
intangible exploration and development costs until this determination is made.
When a positive determination is made the cost is transferred to a cost pool and
depreciated. If a licence interest is determined to be non-commercial the cost
is written off.
Foreign currencies
Transactions in foreign currencies are recorded using the rate of exchange
ruling at the date of the transaction. Monetary assets and liabilities
denominated in foreign currencies are translated using the rate of exchange
ruling at the balance sheet date and the gains or losses on translation are
included in the profit and loss account.
Principles of consolidation
The consolidated financial statements are prepared by combining the financial
statements of all the entities that comprise the consolidated entity, being the
company (the parent entity) and its subsidiaries. A list of subsidiaries appears
in Note 7. Consistent accounting policies are employed in the preparation and
presentation of the consolidated financial statements.
On acquisition, the assets, liabilities and contingent liabilities of a
subsidiary are measured at their fair values at the date of acquisition. Any
excess of the cost of acquisition over the fair values of the identifiable net
assets acquired is recognised as goodwill. If, after reassessment, the fair
values of the identifiable net assets acquired exceeds the cost of acquisition,
the deficiency is credited to profit and loss in the period of acquisition.
The interest of minority shareholders is stated at the minority's proportion of
the fair values of the assets and liabilities recognised.
The consolidated financial statements include the information and results of
each subsidiary from the date on which the company obtains control and until
such time as the company ceases to control such entity.
In preparing the consolidated financial statements, all intercompany balances
and transactions, and unrealised profits arising within the consolidated entity
are eliminated in full.
Consolidated Company
(Unaudited) (Unaudited)
31 December 2006 31 December 2006
£ £
2. Intangible assets
Pine Creek Tenement - acquisition,
exploration and appraisal costs 30,000 -
3. Debtors
Loan to subsidiary - Davos Resources Pty Ltd - 52,660
Goods and services tax receivable 2,151 -
2,151 52,660
4. Creditors
Trade payables 61,313 56,833
Loan by Ascent Capital Holdings Pty Ltd 28,387 -
89,700 56,833
Ascent Capital Holdings Pty Ltd advanced funds to the group for working capital
purposes for the initial Admission. The balance outstanding, $70,968 (£28,387)
is due and payable on demand.
Consolidated Company
(Unaudited) (Unaudited)
31 December 2006 31 December 2006
£ £
5. Share capital
a) Authorised
4,000,000,000 Ordinary shares of 0.25p each 10,000,000 10,000,000
b) Issued and fully paid
Ordinary shares of 0.25p each 137,500 137,500
Issued and fully Share premium
paid capital reserve
c) Movement in issued and fully paid capital
and share premium reserve Number £ £
Issued on incorporation 2 - -
Issued on 4 July 2006 18 - -
20 - -
Subdivision of capital on 4 July 2006 (12) - -
On issue after subdivision of capital 8 - -
Issued on 14 August 2006 22,000,000 55,000 -
Issued on 28 September 2006 22,000,000 55,000 55,000
Issued on 5 October 2006 10,999,992 27,500 522,500
Costs of the issue capital - - (188,610)
55,000,000 137,500 388,890
d) Options
Option Agreements dated 16 October 2006 between the Company and each of
Corporate Synergy and Ascent Capital pursuant to which the Company has granted
Corporate Synergy and Ascent Capital Options to subscribe for 1,650,000 Ordinary
Shares, exercisable at any time from Admission and from time to time until the
third anniversary of Admission. The exercise price is 6.25 pence.
6. Employees
Number of employees
There were no employees during the period apart from the directors.
7. Subsidiary undertakings
Name of company Country Holding Proportion Nature of business
held
Davos Resources Pty Ltd Australia Ordinary 100% Mineral exploration
Shares
Davos Gold Pty Ltd Australia Ordinary 100% Mineral exploration
Shares
On 28 August 2006, Davos acquired the entire issued capital of Davos Resources
Pty Ltd.
On 22 December 2006, Davos acquired the entire issued capital of Davos Gold Pty
Ltd.
8. Subsequent events
On 8 January 2007, the number of Ordinary Shares issued and fully paid was
increased from 55,000,000 Ordinary Shares of £0.0025 each to 116,440,000
Ordinary Shares of £0.0025 each by a placement of 61,440,000 Ordinary Shares at
£0.05 each to raise a total of £3,072,000 before issue costs.
On 22 February 2007, the number of Ordinary Shares issued and fully paid was
increased from 116,440,000 Ordinary Shares of £0.0025 each to 145,220,000
Ordinary Shares of £0.0025 each by a placement of 28,780,000 Ordinary Shares at
£0.05 each to raise a total of £1,439,000 before issue costs.
The authorised and issued share capital of the Company at the date of this
announcement is as follows:
Authorised Issued and fully paid
Amount Number Ordinary Shares of Amount Number
£10,000,000 4,000,000,000 £0.0025 each £363,050 145,220,000
On 10 January 2007, Davos Resources Plc announced that it and Davos Gold Pty Ltd
had entered into a Share Sale Agreement ('SSA') with Croesus Mining NL (an ASX
listed company in administration) ('Croesus') for the purchase of the Croesus
subsidiary company, Central Norseman Gold Corporation Limited (in
administration) ('CNGC').
CNGC owns and operates Australia's longest operating gold mine in Norseman,
Western Australia. Croesus and CNGC appointed administrators on 23 June 2006
following operational problems at the mine and hedging debts, however,
operations at the Norseman mine have continued during the course of the
Administration and the Administration will cease on or before completion of the
SSA.
The purchase consideration for CNGC will be A$66 million plus the assumption of
certain trade liabilities and bonds. This consideration will be payable in the
form of cash of A$44 million, A$2 million of ordinary shares in the Company and
A$20 million of convertible notes.
The SSA is conditional upon the creditors of CNGC agreeing to vary the CNGC Deed
of Company Arrangement to facilitate the sale; Foreign Investment Review Board
of Australia ('FIRB') approval; and, as the acquisition will constitute a
reverse transaction under the AIM Rules, the approval of Davos shareholders.
Davos has paid an A$8 million cash deposit as part of the SSA. This deposit has
become non-refundable as a result of CNGC creditor approval and FIRB approval.
9. Nature of the financial information
The financial information presented above does not constitute statutory accounts
for the period under review.
This information is provided by RNS
The company news service from the London Stock Exchange
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