Final Results
(Thomson Reuters ONE) - 30/09/09 Lisungwe plc ("Lisungwe" or the "Company") Final results for the year ended 31 March 2008I am pleased to present my fourth annual report for the financialyear to 31 March 2009 which has been a challenging one for yourCompany.Having made significant progress at our Chimimbe Hill nickel prospectwhere a JORC resource was established. However, the internationalmarkets collapsed and along with them commodity prices, includingthat of nickel, which at one point slumped to $9,000 per tonne. Atthis level, nickel extraction would be uneconomic so it was to beonly a matter of time before the market corrected itself. I ampleased to report that the price has risen during the past weeks andon 25 September 2009 was over $17,000 per tonne, just short of thelong term predicted average price.A key factor in extracting nickel from ore is the availability andprice of sulphuric acid. This prompted your Company to search for apyrite deposit, pyrite being an iron sulphide mineral from whichsulphuric acid can be produced. One such deposit was quicklyidentified not too far away at Malingunde Hill. After someconsiderable delay, a prospecting licence was secured. However, thiscame as your Company was sorely lacking in cash to fund the necessarydrilling to establish a JORC resource. As a result, field operationshave been suspended for most of 2009.SULPHURIC ACIDSulphuric acid is a commodity used throughout the world in hugequantities; its use is so common it is often overlooked. Totransport it by road, especially in Africa, is hugely expensive, sosecuring a supply close to a mineral extraction facility requiringlarge quantities has real commercial advantages.Within Malawi and the neighbouring countries of Tanzania and Zambiathere are many deposits requiring sulphuric acid for the extractionof uranium, copper, nickel and other minerals. Furthermore, largequantities of acid are required for the much needed fertilizerindustry in southern Africa.With the acquisition and the potential for exploration anddevelopment of the Malingunde Hill pyrite deposit, all theindications are that your Company can move towards a commerciallyviable business subject to satisfactory funding.FUNDINGThe Company's cash crisis coincided with the almost complete collapsein investor confidence, especially in small PLUS Market quotedmineral exploration companies such as yours. VSA Capital Limited,our previous corporate advisers, worked continuously in the latterpart of 2008 and in early 2009 to source the essential funds.Although unsuccessful, we are grateful to them for their efforts onour behalf.We have spent six months searching for funding and refining ourrequirements. Your board is in discussions concerning funding andhopes to finalise a funding deal that will enable your Company tocomplete a pyrite JORC resource at Malingunde Hill. We will make adetailed announcement when any deal is agreed. Obtaining additionalfunds is essential to secure the future of the project and theCompany.OUR PEOPLELisungwe is fortunate in having an excellent team, working welltogether, each of whom has been incredibly patient during a veryfrustrating period in your Company's development. I am grateful tomy colleagues for their practical support at this critical time.ADVISORSBetween November 2007 and March 2009, the Company's corporate advisorwas VSA Capital Limited, a company with which the Board enjoyed ahappy and constructive relationship. We were sad that VSA was unableto raise much needed new investment funds in late 2008 and early2009. We fully recognise that the market was extremely tough, but weremain grateful to VSA for all their enthusiasm and effortsthroughout the period of our relationship. In March 2009 your Boardappointed Rivington Street Corporate Finance Limited.SHAREHOLDER RELATIONSThe Company's shares are traded on PLUS Markets. Details ofdealings, current prices and all announcements may be found atwww.plusmarketsgroup.com using the Company code 'LIS'.We intend to keep you informed of developments as they occur by theissue of news releases to PLUS and their circularisation to all ourShareholders from time to time. To receive an email copy of thesereleases, please register at www.lisungwe.com.Details of the Company's 2009 annual general meeting will beannounced at a later date.CONCLUSIONSubject to obtaining the necessary funding your Board looks to thefuture with optimism; the sulphuric acid project shows all the signsof being a winner. For the moment, your Company has ceased allexploration activity and is now focussed exclusively on the sulphuricacid project at Malingunde Hill; this is likely to be the case forthe coming year. On your behalf, I thank all our advisors as well asall my colleagues for their hard work and support during thechallenging period under review. Finally, on behalf of the Board, Ithank Shareholders for the trust and confidence they have placed inus. I look forward to reporting further progress as events unfold.John WatkinsConsolidated income statement for the year ended 31 March 2009 Year ended Year ended 31 March 31 March 2009 2008 £ £Revenue - -Exploration costs (498,440) (322,641)Administrative expenses (93,532) (135,768) ------------- -------------Operating loss (591,972) (458,409)Currency gain/(loss) 229,502 (19,297)Finance income 11,096 8,718 ------------- -------------Loss before and after taxation (351,374) (468,988) ------------- -------------Loss attributable to the equity (351,374) (468,988)holders of theparent company ------------- -------------Loss per share - basic and diluted (0.17) pence (0.27) penceBalance Sheets As at 31 March 2009 31 March 31 March 31 March 2009 31 March 2009 2008 Company 2008 Group Group £ Company £ £ £AssetsNon-currentassetsProperty, plant 137,583 29,558 - -and equipmentIntangible assets 654,114 654,114 - -Investment in - - 360,380 360,380subsidiaryTrade and other - - 1,689,282 1,116,826receivables ------------- ----------- ------------ -----------Total non-current 791,697 683,672 2,049,662 1,477,206assets ------------- ----------- ----------- -----------Current assetsCash and cash 8,295 656,902 312 650,361equivalentsTrade and other 12,126 19,864 20,822 16,452receivables ------------- ----------- ----------- -----------Total current 20,421 676,766 21,134 666,813assets ------------- ----------- ----------- -----------Total assets 812,118 1,360,438 2,070,796 2,144,019 ------------- ----------- ----------- -----------Equity andLiabilitiesCapital andreservesattributableto equity holdersof the companyCalled-up share 106,456 106,456 106,456 106,456capitalShare premium 1,444,250 1,444,250 1,444,250 1,444,250reserveShare option 87,510 54,760 87,510 54,760reserveRetained earnings (1,569,713) (1,218,339) (292,685) (214,516)Merger reserve 712,500 712,500 712,500 712,500Currency (13,492) 189,238 - -translationreserve ----------- ----------- ----------- -----------Total equity 767,511 1,288,865 2,058,031 2,103,450 ----------- ----------- ----------- -----------LiabilitiesCurrentliabilitiesTrade and other 44,607 71,573 12,765 40,569payables ----------- ----------- ----------- -----------Total current 44,607 71,573 12,765 40,569liabilities ----------- ----------- ----------- -----------Total equity and 812,118 1,360,438 2,070,796 2,144,019liabilitiesNOTES1. Emphasis of Matter - Going ConcernWithout qualifying our opinion, we draw your attention to thedisclosures made in the full accounts in note 1.2 'Basis ofpreparation' of the financial statements, c) going concern (Note 2 inthis announcement). The validity of the accounts does depend upon acommercially viable deposit being found and sufficient funding beingmade available to exploit the resource. The financial informationdoes not include any adjustment that would arise from a failure tocomplete either option. In view of the significance of this fact weconsider that this disclosure should be brought to your attention.Our opinion is not qualified in this respect.2. Going concernThe financial information has been prepared on the going concernbasis, the validity of which depends principally on the discovery ofeconomically viable mineral deposits and the availability ofsubsequent funding to extract the resource. Based on past experienceand future expectations, the management believe it is appropriate toprepare these financial statements on a going concern basis.3. The financial information set out in this announcement does notconstitute statutory accounts within the meaning of section 434 ofthe Companies Act 2006. This financial information has been extractedfrom the audited full accounts of the Group for the year ended 31March 2009.4. The directors do not recommend the payment of a dividend.5. The consolidated financial statement of Lisungwe plc and itssubsidiary have been prepared in accordance with InternationalFinancial Reporting Standards (IFRS) as adopted for use in theEuropean Union.6. The financial statements were approved by the Board of Directorson 29 September 2009.The Directors of Lisungwe Plc accept responsibility for thisannouncement. --ENDS--Lisungwe plcJohn Watkins, Chairmanjohn(at)lisungwe.comTel: 01483 771992Roy C Tucker, CEOroy(at)lisungwe.comTel: 01622 816918Rivington Street Corporate Finance LimitedEran ZuckerEran(at)rs-cf.comTel: 020 7562 3373End---END OF MESSAGE---This announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.
Datum: 30.09.2009 - 13:38 Uhr
Sprache: Deutsch
News-ID 6425
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