Print   



Beacon Hill Resources plc / Ticker: BHR / Index: AIM / Sector: Mining

26 June 2009

Beacon Hill Resources plc ('Beacon Hill' or 'the Group')

Final Results

Beacon Hill Resources plc, the AIM listed resource company, announces its results for the year ended 31 December 2008.

Highlights

•     Significant restructure of the Group including disposal of interests in mineral sands projects
      in West Africa
•     Revised strategy implemented, focused on identifying natural resources projects that will provide
      a long term return for shareholders
•     New Board structure created
•     Further fundraising since the year end of £225,000 by way of a placing of shares

Beacon Hill Chairman Justin Lewis said, 'As part of the Group restructuring, we recently initiated a small fundraising to provide additional working capital. We continue to evaluate, and have discussions with, potential opportunities to capitalise on the assets of the Group, including the listing that Beacon Hill has maintained and look forward to making further announcements shortly.'

Chairman's Statement

The year under review has been an active one for the Group which has seen a period of reconstruction including the disposal of its interests in mineral sands projects in West Africa ('West African Projects'), a change in the Group's board structure and the implementation of a new strategy aimed at increasing shareholder value through the creation of a diversified mining finance house.

Results

For the year under review, the Group had revenues of £28,772 from the West African Projects and made a loss of £1.727million, which included the loss on disposal of the West African Projects of £0.475 million.  

As at 31 December the Group had cash of £107,000 and net assets of £68,335. Since the year end, a further £225,000 (before expenses) has been raised by a placing of shares.

West African Projects

As shareholders are aware, the Group had to cease operations in the Gambia following the expropriation of the joint venture assets, the wrongful cancellation of the mining licence by the Gambian government and the detention of one of the Group's employees. Considerable effort and resources were expended attempting to resolve the dispute, but these were sadly without success. We are, however, very pleased to be able to report that our detained employee was able to leave the country unharmed.

Following this, your Board concluded that it was not economic to pursue its Senegal project in isolation and, as announced on 22 December 2008, the Group disposed of its interests in the West African Projects to its joint venture partner Astron Limited for a cash consideration of A$50,000.

Change of strategy

In conjunction with the disposal of the West African Projects, the Group raised further funds from a new shareholder with a view to developing its agreement with the US Geological survey and to identifying new natural resources assets to develop.

Board changes

Following the disposal of the Group's West African Projects, Alan Hopkins and Boris Matveev left the Board and the Group to pursue new interests. I would like to thank them both for their commitment through difficult times over the last year. Rahul Singh and Geoffrey Chalmers joined the Board during the year to assist in finding new projects and I would also like to thank Tim Jones for his continued guidance and support to the Group throughout this challenging year.

Strategy and Outlook

Since the year end and the disposal of the West African Projects, the Board has sought to develop a strategy that will maximise use of our limited assets, whilst providing a long term return for shareholders.  

As part of the Group restructuring, we recently initiated a small fundraising to provide additional working capital. We continue to evaluate, and have discussions with, potential opportunities to capitalise on the assets of the Group, including the listing that Beacon Hill has maintained and look forward to making further announcements shortly.

Justin Lewis

Chairman

26 June 2009

**ENDS**

Justin Lewis	Chairman, Beacon Hill Resources Plc	+61 (0) 3 8637 1537
Tim Jones	Finance Director, Beacon Hill Resources Plc	+44 (0) 1372 464 549
William Vandyk	Astaire Securities Plc	+44 (0) 20 7448 4400
Hugo de Salis	St Brides Media & Finance Ltd	+44 (0) 20 7236 1177

Consolidated income statement

For the year ended 31 December 2008

	Note	2008	2007
		£	£
Revenue - management fees		28,772	81,606
Administrative expenses		(1,283,391) ________	(1,218,163) ________
Operating loss		(1,254,619)	(1,136,557)
Finance income - bank interest		13,502	34,016 ________
Loss before tax		(1,241,117)	(1,102,541)
Tax expense		-	- ________
Loss for the year from continuing operations		(1,241,117)	(1,102,541)
Loss from discontinued operations		(485,905)  ________	(650,682) ________
Loss for the year attributable to equity holders of the parent entity		(1,727,022)  ________	(1,753,223)  ________
Loss per share attributable to equity holders of the parent entity	2
Basic and diluted  - from continuing operations		(1.428)p	(1.269)p
- from continuing and discontinued operations		(1.987)p	(3.188)p

Consolidated statement of recognised income and expense

For the year ended 31 December 2008

	2008	2007
	£	£
Foreign exchange gain/(loss) on retranslation of  overseas operations	38,797 ________	(60,533) ________
Net income/(loss) recognised directly in equity	38,797	(60,533)
Loss for the year	(1,727,022)  ________	(1,753,223) ________
Total recognised income and expense for the year	(1,688,225)  ________	(1,813,756)  ________
Attributable to: Equity holders of the parent company	(1,688,225)  ________	(1,813,756)  ________

Consolidated balance sheet

As at 31 December 2008

	2008	2007
	£	£
Assets Non-current assets Intangible assets	-	474,991
Property, plant and equipment	25,706	78,603
Interest in joint ventures	- ________	- ________
	25,706 ________	553,594 ________
Current assets Trade and other receivables	10,210	21,024
Cash and cash equivalents	107,041 ________	215,737 ________
	117,251 ________	236,761 ________
Total assets Liabilities	142,957 ________	790,355 ________
Current liabilities Trade and other payables	74,622 ________	146,672 ________
Total liabilities	74,622 ________	146,672 ________
Net assets	68,335 ________	643,683 ________
Equity attributable to equity holders of parent Share capital	836,000	550,000
Share premium	1,759,228	969,851
Merger reserve	839,346	839,346
Foreign exchange reserve	(14,968)	(53,765)
Warrant reserve	37,500	250,000
Retained earnings	(3,388,771) ________	(1,911,749) ________
Total equity attributable to equity holders of the parent	68,335 ________	643,683 ________

Consolidated cash flow statement

For the year ended 31 December 2008

	2008	2007
	£	£
Net cash flow from operating activities Loss for the year	(1,727,022)	(1,753,223)
Depreciation and amortisation	7,295	13,162
Share-based payment expense	-	92,877
Loss on disposal of subsidiary undertaking	474,961	-
Loss on disposal of fixed assets	18,724	-
Share of losses of joint venture	-	598,719
Impairment of goodwill	-	168,875
Capitalised exploration expense	-	(138,147)
Interest received	(13,502)	(34,016)
Foreign exchange loss	24,539	(68,182)
Movement in working capital: - trade and other receivables	10,814	57,613
- trade and other payables	(72,050)	38,472
	________	________
Cash flow from operations	(1,276,241)	(1,023,850)
	________	________
Cash flow from investing activities Purchase of property, plant and equipment	-	(10,401)
Disposal of property, plant and equipment	18,541	10,650
Proceeds from disposal of subsidiary undertaking	22,625	-
Interest received	13,502	34,016
	________	________
Net cash flow from investing activities	54,668	34,265
	________	________
Cash flow from financial activities Issue of shares	1,270,000	-
Share issue costs	(157,123)	-
	________	________
Net cash flow used in financing activities	1,112,877	-
	________	________
Net (decrease)/increase in cash and cash equivalents	(108,696)	(989,585)
Cash and cash equivalents at 31 December 2007	215,737	1,205,322
	________	________
Cash and cash equivalents at 31 December 2008	107,041	215,737
	________	________
Cash and cash equivalents comprise of: Cash available on demand	107,041	180,603
Short-term deposits	-	35,134
	________	________
	107,041	215,737
	________	________

Notes to the preliminary results

For the year ended 31 December 2008

1.	Basis of preparation

The financial information set out in this announcement does not constitute the company's statutory accounts for the years ended 31 December 2008 or 2007, but is derived from those accounts. Statutory accounts for the period ended 31 December 2007, prepared under IFRS, have been delivered to the Registrar of Companies and those for the year ended 31 December 2008 will be delivered following the company's annual general meeting. The auditors reported on these accounts; their reports were unqualified, did not draw attention to any matters by way of emphasis and did not contain a statement under s237(2) or (3) of the Companies Act 1985.

While the financial information included in this preliminary announcement has been prepared in accordance with the recognition and measurement criteria of International Financial Reporting Standards (IFRSs), this announcement does not itself contain sufficient information to comply with IFRSs. 

2.	Loss per share

The calculation of basic loss per ordinary share from continuing and discontinued operations, is based on a loss of £1,727,022 (2007 - £1,753,223) and on 86,900,000 ordinary shares (2007 - 55,000,000), being the weighted average number of ordinary shares in issue during the year.

The calculation of basic loss per ordinary share from continuing operations is based on a loss of £1,241,117 (2007 - £1,102,541) and on 86,900,000 ordinary shares (2007 - 55,000,000) being the weighted average number of ordinary shares in issue during the year.

There is no difference between diluted loss per share and the basic loss per share as the Group reported a loss for the year.

Since the year end the company has issued 90,000,000 Ordinary shares. The company has issued share options and warrants over ordinary shares both of which could potentially dilute basic earnings per share in the future.  

3.	Availability of annual report and accounts

The Group's full report and accounts will be dispatched to shareholders as soon as practicable and before 30 June 2009. Copies will also be available on the Group's website, www.bhrplc.com. Notice of the AGM will be dispatched to shareholders with the Group's report and accounts.

ENDFR SESFIISUSELM