North River Resources Plc
19 March 2008
North River Resources plc
Interim results for the 6 months ended 31 December 2007
CHAIRMAN'S STATEMENT
Whilst our primary objective is to earn an initial interest in the Coronet Hill
Tenement, the Company has been reviewing other resource projects in various
commodities over the period.
During the half year to 31 December 2007 the search for other resource
investments widened, however due to the pricing of assets and competition the
acquisition of such projects has become more difficult.
The Directors together with a small group of Shareholders continue to
investigate the sourcing of new projects and potential new finance for an
acquisition in the resources area.
As the Stock Market and hence resource company shares have deteriorated in the
last couple of months, the Board is seeing more attractively priced assets for
potential purchase, hence the opportunities are looking more positive.
I look forward to advising the Shareholders of the new project in the near
future.
David Christian Steinepreis
Non-Executive Chairman
For further information contact:
David Steinepreis North River Resources Plc 07913 402727
Romil Patel Blue Oar Securities Plc 020 7448 4400
UNAUDITED CONSOLIDATED INCOME STATEMENT
FOR THE SIX MONTHS ENDED 31 DECEMBER 2007
Six months Period ended Six months
ended ended
31 December 30 June 2007 31 December
2007 2006
(Unaudited) (Audited) (Unaudited)
Note £ £ £
Administrative expenses (148,698) (259,982) (25,008)
------------- ------------- -------------
Group operating loss (148,698) (259,982) (25,008)
Interest payable - (34) -
Interest receivable 6,461 8,062 758
------------- ------------- -------------
Loss before taxation (142,237) (251,954) (24,250)
Taxation - - -
------------- ------------- -------------
Loss for the period (142,237) (251,954) (24,250)
============= ============= =============
Attributable to:
Equity holders of the Company (142,237) (251,954) (24,250)
------------- ------------- -------------
(142,237) (251,954) (24,250)
============= ============= =============
Loss per share (pence)
Basic 2 (0.21)p (0.64)p (0.22)p
Diluted 2 (0.21)p (0.64)p (0.22)p
============= ============= =============
UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 31 DECEMBER 2007
Attributable to equity holders
Share Share Option Retained Total
capital premium premium losses equity
£ £ £ £ £
At 1 July 2006 - - - - -
Issue of share capital 68,000 686,000 - - 754,000
Share issue costs - (202,871) - - (202,871)
Loss for the six months - - - (24,250) (24,250)
ended 31 December 2006 ------- --------- -------- --------- ---------
At 31 December 2006 68,000 483,129 - (24,250) 526,879
======= ========= ======== ======== =========
Attributable to equity holders
Share Share Option Retained Total
capital premium premium losses equity
£ £ £ £ £
At 1 July 2006 - - - - -
Issue of share capital 68,000 686,000 - - 754,000
Share issue costs - (204,762) - - (204,762)
Share option charge - - 154,775 - 154,775
--------- ------- --------- --------- ---------
Loss for the period - - - (251,954) (251,954)
ended 30 June 2007 --------- ------- --------- --------- ---------
At 30 June 2007 68,000 481,238 154,775 (251,954) 452,059
========= ======= ========= ========= =========
Attributable to equity holders
Share Share Option Retained Total
capital premium premium losses equity
£ £ £ £ £
At 1 July 2007 68,000 481,238 154,775 (251,954) 452,059
Loss for the six months
ended 31 December 2007 - - - (142,237) (142,237)
------- --------- -------- --------- ---------
At 31 December 2007 68,000 481,238 154,775 (394,191) 309,822
======= ========= ======== ========= =========
UNAUDITED CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2007
31 December 30 June 2007 31 December
2007 2006
(Unaudited) (Audited) (Unaudited)
Notes £ £ £
Assets
Non-current assets
Exploration costs 100,000 100,000 100,000
------------ ------------ ------------
100,000 100,000 100,000
------------ ------------ ------------
Current assets
Receivables 1,759 - -
Cash and cash
equivalents 240,589 387,797 738,378
------------ ------------ ------------
242,348 387,797 738,378
------------ ------------ ------------
Total assets 342,348 487,797 838,378
------------ ------------ ------------
Liabilities
Current liabilities
Payables (32,526) (35,738) (311,499)
------------ ------------ ------------
(32,526) (35,738) (311,499)
------------ ------------ ------------
Total liabilities (32,526) (35,738) (311,499)
------------ ------------ ------------
Net (liabilities)/assets 309,822 452,059 526,879
============ ============ ============
Equity
Capital and reserves
attributable to equity holders
Called up share capital 68,000 68,000 68,000
Share premium account 481,238 481,238 483,129
Option premium reserve 154,775 154,775 -
Retained losses (394,191) (251,954) (24,250)
------------ ------------ ------------
Total equity and reserves 309,822 452,059 526,879
============ ============ ============
UNAUDITED CONSOLIDATED CASH FLOW STATEMENT
FOR THE SIX MONTHS ENDED 31 DECEMBER 2007
Note Six months Period ended Six months
ended ended
31 December 30 June 2007 31 December
2007 2006
(Unaudited) (Audited) (Unaudited)
£ £ £
Net cash (outflow)
/ inflow from
operating
activities (153,669) (69,469) 1,076
------------ ------------ ------------
Returns on investments and
servicing of finance
Interest payable - (34) -
Interest received 6,461 8,062 758
------------ ------------ ------------
Net cash inflow
from returns on
investment and
servicing of
finance 6,461 8,028 758
------------ ------------ ------------
Cash flows from investing
Capitalised costs
- Farm-in costs
Coronet Hill - (100,000) -
------------ ------------ ------------
Net cash outflow
from investing - (100,000) -
------------ ------------ ------------
Cash flows from financing
Proceeds from
issue of shares - 754,000 754,000
Cost of the issue
of shares - (204,762) (17,456)
------------ ------------ ------------
Net cash inflow
from financing - 549,238 736,544
------------ ------------ ------------
(Decrease) /
increase in cash
and cash
equivalents (147,208) 387,797 738,378
Cash and cash
equivalents at
beginning of the
period 387,797 - -
------------ ------------ ------------
Cash and cash
equivalents at the
end of the period 240,589 387,797 738,378
============ ============ ============
NOTES TO THE UNAUDITED FINANCIAL INFORMATION
FOR THE SIX MONTHS ENDED 31 DECEMBER 2007
1. Basis of preparation
This interim report, which incorporates the financial information of the Company
and its subsidiary undertakings ('the Group'), has been prepared using the
historical cost convention and in accordance with International Financial
Reporting Standards ('IFRS') including IAS 34 'Interim Financial Reporting' and
IFRS 6 'Exploration for and Evaluation of Mineral Resources', as adopted by the
European Union ('EU').
These interim results for the six months ended 31 December 2007 are unaudited
and do not constitute statutory accounts as defined in section 240 of the
Companies Act 1985. They have been prepared using accounting bases and policies
consistent with those used in the preparation of the financial statements of the
Company and the Group for the year ended 30 June 2007 and those to be used for
the year ending 30 June 2008. The financial statements for the year ended 30
June 2007 have been delivered to the Registrar of Companies and the auditors'
report on those financial statements was unqualified and did not contain a
statement made under Section 237(2) or Section 237(3) of the Companies Act 1985.
2. Loss per ordinary share
The basic loss per ordinary share has been considered using the loss
attributable to equity shareholders for the financial period of £142,237 (30
June 2007: £251,954, 31 December 2006: £24,250) and the weighted average number
of ordinary shares in issue of 68,000,000 (30 June 2007: 39,375,343, 31 December
2006: 10,847,828).
The diluted loss per share has been considered using a weighted average number
of shares in issue and to be issued of 68,000,000 (30 June 2007: 39,375,343, 31
December 2006:10,847,828). 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.
3. Foreign currency transactions
Items included in the Group's financial information are measured using the
currency of the primary economic environment in which the Group operates ('the
functional currency'). The financial information is presented in Pounds
Sterling ('£'), which is the functional and presentation currency of the Company
and the presentation currency of the Group.
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.
The assets, liabilities and the results of the foreign subsidiary undertakings
are translated into sterling at the rates of exchange ruling at the year end.
Exchange differences resulting from the retranslation of net investments in
subsidiary undertakings are treated as movements on reserves.
4. Expenditure commitments
Under the terms and conditions of the farm-in agreement, the Company has a
commitment to contribute to the cost of exploration expenditure to earn its
interest in the project. The Company can however withdraw from the farm-in
agreement at any time by giving notice in writing to the farm in partner of its
intention to withdraw and upon withdrawal the farm-in agreement shall terminate.
Commitments contracted for at reporting date but not recognised as liabilities
and falling within one year of the date of this report are £300,000.
5. Subsidiary undertakings
Name of company Country Holding Proportion Nature of business
held
North River
Resources Pty Ltd Australia Ordinary 100% Mineral exploration
Shares
6. Segment reporting
A business segment is a distinguishable component of the entity that is engaged
in providing products or services that are subject to risks and returns that are
different from those of other business segments. A geographical segment is a
distinguishable component of the entity that is engaged in providing products or
services within a particular economic environment and is subject to risks and
returns that are different from those of segments operating in other economic
environments.
The Company operates in one business segment, that being, mineral exploration
and evaluation and currently operates within the United Kingdom and Australia.
Geographical Segment - Group United Kingdom Australia Total
31 December 2007 £ £ £
Administration expenses (148,698) - (148,698)
Interest receivable 6,461 - 6,461
------------ ----------- -----------
Loss before taxation (142,237) - (142,237)
============ =========== ===========
Farm-In costs Coronet Hill - 100,000 100,000
Cash and cash equivalents 240,589 - 240,589
Receivables 1,759 - 1,759
Accrued expenditure and provisions (32,526) - (32,526)
------------ ----------- -----------
Net Assets 209,822 100,000 309,822
============ =========== ===========
At the end of the period on 31 December 2007, the Group had not commenced
commercial production from its exploration sites and therefore had no turnover
in the period.
Geographical Segment - Group United Kingdom Australia Total
30 June 2007 £ £ £
Administration expenses (259,982) - (259,982)
Interest payable (34) - (34)
Interest receivable 8,062 - 8,062
------------ ----------- -----------
Loss before taxation (251,954) - (251,954)
============ =========== ===========
Farm-In costs Coronet Hill - 100,000 100,000
Cash and cash equivalents 387,797 - 387,797
Accrued expenditure and provisions (35,738) - (35,738)
------------ ----------- -----------
Net Assets 352,059 100,000 452,059
============ =========== ===========
Geographical Segment - Group United Kingdom Australia Total
31 December 2006 £ £ £
Administration expenses (25,008) - (25,008)
Interest receivable 758 - 758
------------ ----------- -----------
Loss before taxation (24,250) - (24,250)
============ =========== ===========
Farm-In costs Coronet Hill - 100,000 100,000
Cash and cash equivalents 738,378 - 738,378
Accrued expenditure and provisions (311,499) - (311,499)
------------ ----------- -----------
Net Assets 426,879 100,000 526,879
============ =========== ===========
7. Material events subsequent to the end of the interim period
There has been no matter or circumstance, other than those mentioned above, that
has arisen, since the 31 December 2007 and up to the date of this report, that
has significantly affected, or may significantly affect:
a) the Group's operations in future financial years, or
b) the results of those operations in future financial years, or
c) the Group's state of affairs in future financial years.
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