DGAP-News: Deutsche Rohstoff AG: Group Development update
(firmenpresse) - DGAP-News: Deutsche Rohstoff AG / Key word(s): Miscellaneous
Deutsche Rohstoff AG: Group Development update
03.05.2011 / 07:45
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Deutsche Rohstoff AG: Group Development Update
Group's net 2011 profit expected to exceed EUR 10m
Heidelberg, Germany. Deutsche Rohstoff AG releases the following overview
of the development of the business activities currently pursued at Group
level and in its individual corporate divisions.
I. Gold
Deutsche Rohstoff Australia (100% interest): The successful start of gold
production in Georgetown, Australia, in the first quarter 2011 has led to
an output of 4,000 ounces of gold and a turnover of AUD 5.1m (approx. EUR
3.8m). The goal for the year 2011 has been fixed at 20,000 ounces (see
press release of 18 April 2011) and total sales of AUD 28m (approx. EUR
20.7m). Preparations for mining a third deposit named 'Jubilee Plunger' are
currently under way. Besides the deposits 'Red Dam' and 'Electric Light',
Jubilee Plunger will be mined as from July/August this year.
Mongolia: (50%): DRAG intends to commence an alluvial gold production in
Mongolia later this summer. It is planned to mine two licence areas
together with the partner T&T in 2011 and 2012 and produce the so far
explored resource of 12.000 ounces. For 2011, a production of roughly 5.000
ounces is envisaged. Following deduction of all operative expenses, the
contracting parties will share the proceeds on a 50:50 basis (see press
release of 2 May 2011).
II. Oil and Gas
Rhein Petroleum GmbH, Germany (25%): A majority stake was sold to Tulip Oil
Holding BV in early January. That transaction provided Deutsche Rohstoff AG
with a profit of EUR 4.8m which will be recorded in the company's books
largely tax-free. Should the agreed milestones be achieved, the company may
expect further payments (fully affecting its profit situation) in the
amount of at least EUR 2.5m in the months to come.
Directly after conclusion of the purchase agreement Tulip Oil Holding BV
assumed the management of Rhein Petroleum GmbH. Preparations for the 3D
seismic survey in the Rhine Valley and Bavarian licensed areas are being
made and expected for implementation in September 2011. Deutsche Rohstoff
AG continues to be involved in the management of the company. Some
management tasks were taken over within the framework of a service
contract.
Tekton Energy, Denver, Colorado, USA (57%): In February the Management in
Denver moved into its own office premises to assume its operations.
Comprehensive data have already been screened and some projects meeting our
criteria and located in the US and Europe have so far been identified. We
assume that we will realise at least one acquisition in the course of the
year (see press release of 24 January 2011).
III. High-tech Metals
Tungsten/Molybdenum
Wolfram Camp (85%): The due diligence process for this tungsten mine
situated in Queensland, Australia, is still in progress. A final decision
on acquiring the mine will be taken by 10 May (see press release of 6 April
2011).
Tin
Geyer, Gottesberg, Germany (100%): A trial pit is slated for July/August
2011 in the Geyer licensed area to extract fresh ore for processing tests.
The main operational plan for this project has already been submitted.
Also, we are currently considering spinning off the two licences for the
Geyer and Gottesberg repositories, both located in Saxony and holding tin
as their primary natural resource, to set up a company of its own and to
manage its future development together with investors. The price for tin
has reached new all-time highs in the last months. Due to the limited
supply context, market analysts do not expect this situation to ease in the
years to come.
Rare earth elements
Storkwitz, Germany (100%): Negotiations with a potential partner who could
ensure the future funding requirements and development of the project are
still underway. We are currently examining additional approaches to expand
our activities in the rare earth elements sector. Further information on
this topic is expected to be published in the second half of the current
year.
Lead/Zinc
Devonian Metals, Canada (47.2%): We assume that we will continue to
implement this project in Wrigley, Canada, within the framework of the
farm-in agreement concluded with Glencore. We reckon that a slightly
adjusted contract will be entered into at short notice. An update of the NI
43-101 expert opinion is supposed to be published by the end of the second
2011 quarter. This year's drilling schedule is expected to start at the end
of June, as well.
Nickel
Kiefernberg, Germany (100%): A pre-feasibility study on the processing of
nickel laterite ores showed that in view of the current price level
cost-efficient mining may not be expected. Consequently, we will not
continue to pursue this project. The anyway minor residual book value
totalling EUR 22,600 will be fully depreciated in the 2010 financial
statements.
IV. Deutsche Rohstoff AG
2010 Financial Statements/1st quarter 2011 (provisional/unaudited):
Publication of the finalised 2010 financial statements is slated for
mid-June 2011. Based on the provisional figures, the after-tax result is
balanced (Q1/2011: EUR 4.9m). The Group's equity increased to approx. EUR
15.3m at the end of the year (31 March 2011: EUR 20.3m). Cash and
equivalents amounted to EUR 3.4m (31 March 2011: EUR 7.1m). The
liabilities totalled EUR 4.3m (31 March 2011: EUR 2.07m).
V. Deutsche Rohstoff Group
Publication of consolidated financial statements under German GAAP is
projected for the first time upon preparation of the Group's 2011
semi-annual report. Currently, the consolidation scope will encompass
Deutsche Rohstoff AG, Deutsche Rohstoff Australia, Deutsche Rohstoff USA,
including Tekton Energy, as well as Wolfram Camp Pty Ltd., if appropriate.
We expect the Group to recognise a net result of at least EUR 10m or EUR
2.27 per share over the complete 2011 financial year.
Heidelberg, Germany, 3 May 2011
Entry Standard-listed Deutsche Rohstoff AG is setting up a new commodity
producer. The Group's priority areas include gold, oil, gas and so-called
'high-tech metals' such as tungsten, tin and rare earth elements. All
projects are located in politically stable countries, whereby special focus
is placed on Germany. The Group's business model is based upon
(re)developing deposits which were explored in depth in the past. First
production activities were taken up in January 2011 in Georgetown,
Australia. For further information about Deutsche Rohstoff AG log on to
www.rohstoff.de.
Contact:
Dr. Thomas Gutschlag
gutschlag(at)rohstoff.de
+49 6221 652 4730
End of Corporate News
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122578 03.05.2011
Datum: 03.05.2011 - 07:45 Uhr
Sprache: Deutsch
News-ID 33940
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