Interim Results. for the six months ended 30 June 2012

Transcription

1 24 September 2012 Rare Earth Minerals plc Interim Results for the six months ended 30 June 2012 Rare Earth Minerals plc (AIM: REM.L), announces its interim results for the six months ended 30 June During the period the Group made a loss before taxation of 356,000 (6 months ended 31 March : loss 196,000, 15 months ended 31 December : loss 1,438,000). There was a weighted loss per share of 0.03p (31 March : loss per share 0.02p, 31 December : loss per share 0.14p). Current trading During the period under review the Company has continued to make good progress. The Company has continued to pursue its investment strategy to develop a diverse portfolio of direct and indirect interests in exploration and producing rare earth minerals and metals projects and assets. In July 2012, the Company announced that after significant effort from the board, it had finally been awarded three key Exploration Licences in Southern Greenland by the Greenland Government, two of which form common boundaries to main licences owned by Greenland Minerals and Energy Limited "GGG" (ASX: GGG). The three Exploration Licences (2012/13-15) cover a land mass area of 832 km2 near the regional centres of Narsaq, Narsarsuaq and Qaqortoq. Two licences, 2012/14 and 2012/15, abut the northern and eastern boundaries of GGG's licences that encompass the world class Kvanefjeld, Sørenson, Zone 3 and Steenstrupfjeld Rare Earth Element ("REE") deposits. GGG's latest stated estimates for inferred and indicated mineral resources at the Kvanefjeld Deposit as defined by JORC (March ) include a metal inventory of 6.55 million tonnes ("Mt") of Total Rare Earth Oxides ("TREOs") (including 0.24 Mt of Heavy Rare Earth Oxides "HREOs" and 0.53 Mt of Yttrium Oxide), 350 Mlbs of U3O8 and 3 Blb's of Zinc. Including the inferred mineral resources for their Sorensen and Zone 3 deposits, both announced in 2012, GGG's global metal inventory in inferred and indicated categories was 575 Mlbs U3O8, 10.3 Mt TREO and 2.24 Mt Zinc (at a 150 ppm U3O8 cut-off). The rare earth resource inventory included 0.37 Mt HREO and 0.84 Mt Yttrium Oxide. Refer to GGG's website: for full details of their projects, location and resources. A map showing REM's Exploration Licences is on the Company's website: David Lenigas, a director of the Company, commented at the time: "The Company has been working for over a year to secure these key Exploration Licences in Greenland, which surround one of world's largest resources of REEs outside of China. In addition to REEs, South Greenland also has proven potential for gold, niobium, tantalum and zirconium mineralisation." "Now that these Licences have been granted, we have commissioned SRK Exploration Services Ltd. ("SRK ES") to commence an exploration programme to assess the mineral potential of the licence areas. SRK ES is part of the global SRK Group and has extensive experience of mineral exploration in South Greenland. The SRK Group is one of GGG's main geological consultants and has completed Mineral Resource Estimates for GGG's assets as well as other exploration projects in the area."

2 "REM is actively pursuing further exploration licences in South Greenland, and we will keep the market informed of progress as events materialize." Results of the exploration programme will be advised by the Company in due course The Company continues to maintain its interests in the projects in Canada and Western Australia and will advise any further results in due course. David Lenigas Director 24 September 2012

3 GLOSSARY TERM Ce, Ce2O3 Cut-off grade Deposit Dy, Dy2O3 Er, Er2O3 Eu, Eu2O3 Grade Granite High grade Ho, Ho2O3 HREE or Heavy Rare Earth Elements HREO or Heavy Rare Earth Oxides JORC JORC code La, La2O3 Low Grade LREE or Light Rare Earth Elements LREO orlight Rare Earth Oxides Lu, Lu2O3 Mineral Mineral Resource DEFINITION Cerium, Cerium oxide When determining economically viable Mineral Reserves, the lowest grade of mineralised material that qualifies as ore. A naturally occurring accumulation of minerals that may be considered economically valuable. Dysprosium, Dysprosium oxide Erbium, Erbium oxide Europium, Europium oxide The quantity of ore or metal in a specified quantity of rock A medium to coarse grained plutonic igneous rock usually light coloured and consisting largely of quartz and feldspar; Pertaining to ore which is rich in the metal being mined. Holmium, Holmium oxide Comprising Eu, Gd, Tb, Dy, Ho, Er, Tm, Yb and Lu. Y is often included in the HREE group since it tends to occur in the same ore deposits as other HREE and exhibits similar chemical properties, despite its lower atomic mass. Of higher value than LREEs. Comprising the oxide forms of HREE. Conventionally the HREE content of a deposit is expressed in the oxide form. Joint Ore Reserves Committee (of the AusIMM and other institutions) Australasian code for reporting of Mineral Resources and Ore Reserves. Lanthanum, Lanthanum oxide Pertaining to ore which is comparatively low in content for the metal which is being mined. Comprising La, Ce, Pr, Nd Pm and Sm Comprising the oxide forms of LREE. Conventionally the LREE content of a deposit is expressed in the oxide form. Lutetium, Lutetium oxide A natural, inorganic, homogeneous material that can be expressed by a chemical formula. A concentration or occurrence of material of intrinsic economic interest in or on the Earth's crust in such a form and quantity that there are reasonable prospects

4 for eventual economic extraction. The location, quantity, grade, geological characteristics and continuity of a Mineral Resource are known, estimated or interpreted from specific geological evidence and knowledge. Mineral Resources are sub-divided, in order of increasing geological confidence, into Inferred, Indicated and Measured categories. Mineralisation Mineralised Nd, Nd2O3 Niobium Ore The process by which minerals are introduced into a rock. More generally, a term applied to accumulations of economic or related minerals in quantities ranging from weakly anomalous to economically recoverable. Containing ore minerals. Neodymium, Neodymium oxide Chemical element with symbol Nb. Used in alloys and various superconducting materials Mineral bearing rock that contains one or more minerals, at least one of which can be mined and treated profitably under current or immediately foreseeable economic conditions. Ore Reserve Orebody Pm Pr, Pr2O3 Prospect Rare Earth Elements (REEs) or Rare Earths The economically mineable part of a Measured or Indicated Mineral Resource. It includes diluting materials and allowances for losses which may occur when the material is mined. Appropriate assessments, which may include feasibility studies, have been carried out, and include consideration of and modification by realistically assumed, mining, metallurgical, economic, marketing, legal, environmental, social and governmental factors. These assessments demonstrate at the time of reporting that extraction could reasonably be justified. Ore Reserves are sub-divided in order of increasing confidence into Probable Ore Reserves and Proved Ore Reserves. A continuous, well-defined mass of material of sufficient ore content to make extraction economically feasible. Promethium Praseodymium, Praseodymium oxide A mineral property, the value of which has not been proved by exploration. To search for minerals or oil by looking for surface indications, by drilling boreholes, or both. A series of metallic lanthanide elements with similar chemical properties comprising HREEs and LREEs (but excluding Pm for the purposes of the geological REE occurrences having regard to its unstable nature). Widely used in technological devices. Rare Earth Oxides (REOs) The oxide forms of REEs. Oxide grades are conventionally used when stating grades for REE deposits. Reserves That part of a mineral resource which has been demonstrated to be economically exploitable. Resource The total quantity of a mineral which is calculated to lie within given

5 boundaries and which could be economically workable. Sm, Sm2O3 SRK ES Tantalum Tb, Tb2O3 Tm, Tm2O3 TREO Samarium, Samarium oxide SRK Exploration Services Chemical element with symbol Ta. Main use is for capacitors in electronic equipment, as also as a component in alloys. Terbium, Terbium oxide Thulium, Thulium oxide Total Rare Earth Oxides - the sum of the concentrations of rare earth oxides U, U3O8 Uranium, Uranium oxide Uranium Hard, lustrous, silver-white, malleable and ductile, radioactive, metallic element of the actinide series. Y, Y2O3 Yttrium, Yttrium oxide Yb, Yb2O3 Zirconium Ytterbium, Ytterbium oxide A chemical element with symbol Zr. Commonly used as an alloying agent due to its excellent resistance to corrosion, as a refractory mineral in furnaces, and for the production of thin ceramic coatings. Mining of Radioactive Minerals in Greenland Greenland currently imposes a ban on the exploration and exploitation of radioactive elements where these occur at "above background levels" (as they do at the GGG projects and other REE-Nb-Ta projects in the area). This prohibition includes mining of these elements as by-products. As it stands this law would prohibit mining in areas where concentrations of radioactive elements exceed background levels. Background levels for the alkaline complexes in South Greenland that host such mineral occurrences have been stated by the Minister for Industry & Resources to be up to 60 ppm. The Greenland government is promoting debate through a process of public consultation on the issue of mining uranium and other radioactive elements. Support for a change in policy has come from the South Greenland Municipal Council, major labour unions and some political parties. In October 2010, the Greenland government amended its Standard Conditions for Mineral Licences to allow companies that have delineated a resource that falls into this category to apply for approval to conduct feasibility, environmental and community studies into projects that contain radioactive elements at above background levels. As a further indication of a possible change in policy the Greenland Government agreed in December to amend the conditions of an exploration licence held by GGG to include radioactive elements. This change may give GGG the ability to apply for an Exploitation Licence that includes minerals such as uranium. REM understands however that the extraction ban for now remains in place.

6 RARE EARTH MINERALS PLC STATEMENT OF COMPREHENSIVE INCOME FOR THE PERIOD ENDED 30 JUNE 2012 Note Six months ended 30 June 2012 Six months ended 31 March Audited 15 months ended 31 December '000 '000 '000 Administrative expenses (356) (196) (1,438) Total administrative expenses (356) (196) (1,438) Loss from operations (356) (196) (1,438) Loss for the period before taxation (356) (196) (1,438) Taxation expense Loss for the period after taxation and loss (356) (196) (1,438) attributable to the equity holders of the company Other comprehensive income - Foreign exchange (2) - 25 Decrease in value of available for sale asset (49) - (137) Total comprehensive expenditure for the period (407) (196) (1,550) Basic and diluted loss per ordinary share (pence) 3 (0.03)p (0.02)p (0.14)p

7 RARE EARTH MINERALS PLC CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE PERIOD ENDED 30 JUNE 2012 Share Share based Share payment Available for sale Exchange Retained Total capital premium reserve reserve reserve earnings equity '000 '000 '000 '000 '000 At 31 March (unaudited) 506 4, (4,822) 396 Share based payments Issue of share capital 55 2, ,625 Share issue costs - (145) (145) Transactions with owners 55 2, ,835 Loss for the period (1,242) (1,242) Foreign exchange Decrease in value of available for (137) sale asset (137) Total comprehensive expenditure for the year (137) 25 (1,242) (1,354) At 31 December (audited) 561 6, (137) 25 (6,064) 1877 Share based payments Issue of share capital Transactions with owners Loss for the period (356) (356) Foreign exchange (2) Decrease in value of available for (49) sale asset Total comprehensive expenditure for the period (356) (356) At 30 June 2012 (unaudited) 561 6, (186) 23 (6,420) 1,495

8 RARE EARTH MINERALS PLC STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2012 ASSETS Non-current assets Note 30 June March Audited 31 December '000 '000 '000 Intangible assets 1,049-1,030 Available for sale asset ,348-1,409 Current assets Trade and other receivables Cash and cash equivalents Total current assets Total assets 1, ,918 EQUITY AND LIABILITIES Current liabilities Trade and other payables Total current liabilities and total liabilities Equity Share capital Share premium 6,866 4,441 6,866 Share based payment reserve Available for sale asset reserve (186) - (137) Exchange reserve Retained earnings (6,420) (4,822) (6,064) Total equity attributable to equity holders 1, ,877 Total equity and liabilities 1, ,918

9 RARE EARTH MINERALS PLC CONSOLIDATED CASH FLOW STATEMENT FOR THE PERIOD 30 JUNE 2012 Six months ended 30 June 2012 Six months ended 31 March Audited 15 months ended 31 December '000 '000 '000 Operating activities Loss after taxation (356) (196) (1,438) Adjustments for: Amortisation of intangibles Decrease/(increase) in trade and other receivables 15 (6) (249) Increase/(decrease) in trade and other payables 64 (392) (361) Equity settled share based payments Net cash (outflow)/inflow from operating activities (223) (538) (1,594) Cash flow from investing activities Purchase of licences - - (73) Purchase of subsidiary - - (380) Investment in AFS assets - - (516) Sale of Available for sale assets Investment in exploration (49) - (70) Net cash outflow from investing activities (19) - (1,039) Cash flow from financing activities Proceeds from issue of share capital ,730 Share issue costs - (15) (160) New loan - (150) - Net cash inflow from financing activities ,570 Net change in cash and cash equivalents (242) (73) (63) Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period

10 NOTES TO THE INTERIM REPORT FOR THE PERIOD ENDED 30 JUNE BASIS OF PREPARATION The interim financial statements have been prepared in accordance with applicable accounting standards and under the historical cost convention. The financial information set out in this interim report does not constitute statutory accounts as defined in section 434 of the Companies Act The Group s statutory financial statements for the year ended 31 December have been delivered to the Registrar of Companies. The auditor s report on those financial statements was unqualified. The principal accounting policies of the Group are consistent with those detailed in the 31 December financial statements, which are prepared in accordance with International Financial Reporting Standards (IFRSs), as adopted by the European Union. GOING CONCERN The Directors have prepared a cash flow forecast for the 12 month period ending 30 September The forecast demonstrate that the Group has sufficient funds for its near term needs to develop its assets for a period of at least twelve months from the date of approval of these financial statements. Further funds may also be raised from further issues of equity as and when required. Accordingly, the accounts have been prepared on a going concern basis. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results 2 SEGMENTAL REPORTING An operating segment is a distinguishable component of the Group that engages in business activities from which it may earn revenues and incur expenses, whose operating results are regularly reviewed by the Group s chief operating decision maker to make decisions about the allocation of resources and assessment of performance and about which discrete financial information is available. The chief operating decision maker reviews financial information for and makes decisions about the Group s performance as a whole. The Group has not actively traded during the period. Subject to further acquisitions the Group expects to further review its segmental information during the forthcoming financial year. 3 LOSS PER SHARE The calculation of the loss per share is based on the loss attributable to ordinary shareholders divided by the weighted average number of shares in issue during the period. Six months ended 30 June 2012 Six months ended 31 March Audited 15 months ended 31 December Loss for the period from total operations ( '000) (407) (196) (1,550)

11 Weighted average number of 0.25p ordinary shares 1,443,619, ,465,204 1,046,704,389 Loss per share from total operations (0.03)p (0.02)p (0.14)p The share options are anti-dilutive, as a consequence of the loss for the period. 4 SHARE CAPITAL Authorised 30 June March Audited 31 December '000 '000 '000 4,000,000,000 ordinary shares of 0.01p ,000,000,000 deferred shares of 0.24p 9,600 9,600 9,600 10,000 10,000 10,000 Allotted, issued and fully paid 173,619,050 deferred shares of 0.24p ,443,619,050 ordinary shares of 0.01p (31 March : 893,619,050 and 31 December : 1,443,619,050 ordinary shares of 0.01p) Enquiries: David Lenigas, Director, Rare Earth Minerals plc +44 (0) James Joyce, WH Ireland Limited +44 (0)