TIDMBRM
RNS Number : 3232R
Brinkley Mining PLC
29 April 2009
For immediate release 29
April 2009
Brinkley Mining Plc
("Brinkley Mining" or the "Company")
AUDITED RESULTS
FOR THE PERIOD ENDED 31 DECEMBER 2008
Brinkley Mining announces its audited results for the period ended 31 December
2008. The Report and Accounts are expected to be posted to shareholders in May
2009 and the Annual General Meeting will be held in London towards the end of
June 2009.
Chairman's Statement
Fundamental Change of business
The past year has been a period of change for Brinkley. Upon assuming office in
May 2008, the new Board and management implemented a strategic review of the
Company's operations. This was done in light of the substantial fall in the
uranium price since mid-2007 and the major decline in the share prices of AIM
traded junior uranium exploration companies.
The outcome of the Board's strategic review was a decision to terminate its
operations in Chad and the DRC, to dispose of its Nigerien subsidiary, African
Uranium and reposition the Company as an Investment Company in natural
resources. The termination of the Company's operations in Chad and DRC was
completed in November 2008. The shareholders, at an EGM held on 22 of December
2008, approved the disposal of African Uranium and the Company's new investment
strategy. Following these disposals, under the AIM Rules, the Company has become
an Investing Company with its main asset being its cash balances, which at 31
December 2008 amounted to GBP7,321,731. In addition, the Company retains its 50%
share in a Joint Venture Agreement with New Kush Exploration and Mining Company
Ltd to explore for uranium and gold in the Budi County concession area in
Southern Sudan and its 49% stake in the Waterval uranium prospect in South
Africa, both of which are discussed in more detail in the Projects Overview. The
disposals and restructuring of the Company has enabled Brinkley to significantly
reduce its annual cash expenditure thereby preserving its cash resources.
Brinkley Mining is now well positioned to take advantage of the current
depressed market conditions and make acquisitions that will create significant
value for shareholders. Having completed the asset disposals, the Brinkley
Mining management team has actively pursued a program of identifying and
evaluating additional potential investment opportunities. In terms of the
approved investment strategy, detailed below, management is looking to:
"acquire holdings in natural resources, minerals and/or metals companies and/or
assets which the Directors believe are undervalued and where such a
transaction(s) has the potential to create value for Brinkley Mining".
To date since the approval of the new strategy, the management has proactively
identified and evaluated a number of potential acquisitions, but so far none
have fulfilled the Company's investment criteria. The process of identifying and
evaluating potential projects is ongoing and Shareholders will be kept informed
of any material developments.
In terms of the AIM Rules, the Company is required to make an acquisition/s,
which may constitute a reverse take over, in order to implement its investment
strategy, which was approved by shareholders at the EGM held on the 22 December
2008. If the Investment Strategy has not been implemented within 18 months of
the AGM (i.e. by 22 June 2010) then the admission to trading the Company's
Ordinary Shares on AIM will be cancelled and a Shareholders' meeting will be
convened to consider whether to consider seeking investment opportunities or to
wind up the Company and distribute any surplus cash back to Shareholders.
New Investment Strategy
Brinkley Mining's strategy is to acquire holdings in natural resources, minerals
and/or metals companies and/or assets which the Directors believe are
undervalued and where such a transaction(s) has the potential to create value
for Shareholders. The Company expects to be an active investor but it will
depend on the terms of each transaction.
Brinkley Mining will seek to acquire interests in natural resources, minerals
and/or metals projects such as (without limit) exploration permits and licences,
mining and production licences or processing and development projects, which may
be achieved through acquisitions, partnerships or joint venture arrangements.
Such investments may result in Brinkley Mining acquiring the whole or part of a
company or project. Brinkley Mining's investments may take the form of equity,
joint venture debt, convertible instruments, licence rights, or other financial
instruments as the Directors deem appropriate.
The Directors believe that their broad collective experience in the areas of
natural resources, acquisitions, accounting, corporate and financial management
together with the opinion of consultant experts in the evaluation and
exploitation of natural resources, minerals or metals projects, which will
assist them in the identification and evaluation of suitable opportunities, will
enable the Company to achieve its objectives.
Where the Directors consider it necessary, internationally recognised competent
persons will be commissioned to prepare reports on the projects being considered
by the Company. The Directors may undertake the initial project assessments
themselves with additional independent technical advice as required.
There is no limit on the number of projects into which the Company may invest,
and the Company will consider possible opportunities anywhere in the World.
Exploration Summary
The only significant exploration work carried out during 2008 was in connection
with our joint venture in Southern Sudan. The work undertaken there has been
detailed within the Projects Overview section.
Corporate
This year has been one of significant change for the Company. On 3 April 2008, I
joined the Board as Non-Executive Deputy Chairman and in May, Dunbar Dales
joined me as our Chief Executive. Dunbar has extensive experience of working in
Africa as a geologist. Mark Fresson joined the Company as our Finance Director
on 5 August 2008, and this completed the appointment of the new executive
management team.
Dunbar led the Board's detailed strategic review of the Company's operations and
its licences. As a consequence of that review the Board initiated a
rationalisation of the Company's interests, the results of which I have referred
to above.
Results Summary
The Group loss after tax for the year was GBP13.0 million (2007: GBP7.9 million
loss). The loss is mainly attributable to the impairment of intangible assets
(GBP9.3 million) and the loss on sale of investments (GBP2 million).
A large part of the impairment charge this year and last year relates to
intangible assets for which Brinkley issued its own shares in consideration, as
opposed to paying for those intangible assets with cash. Over the last two
reported years, a total of GBP9.9 million has been written off through the
Income Statement and a further GBP7 million has been written off to the merger
reserve both being in respect of such non cash consideration.
Administrative expenses are higher than in 2007 partly as a result of severance
costs relating to former Directors and an increase in travel costs and sundry
closure costs, none of which are anticipated in the coming year.
Outlook
I believe that your Company will have an interesting 2009 as more potential
opportunities for new projects become available as the full implications of the
current economic downturn emerge. The Board and management continue to
proactively identify and evaluate suitable opportunities for the Company.
I would like to thank our staff and partners for all their hard work and
assistance in effectively restructuring and refocusing the Company to create an
organisation that is well positioned to take advantage of current market
conditions and add create significant value for shareholders.
Richard Linnell
Non-Executive Chairman
29 April 2009
Projects Overview
Upon assuming office in May 2008, the new Board and management implemented a
strategic review of the Company's operations. This was done in light of the
substantial fall in the uranium price since mid-2007 and the major decline in
the share prices of listed junior uranium exploration companies. The outcome of
the Board's strategic review was a decision to terminate its operations in Chad
and the DRC, to dispose of its Nigerien subsidiary, African Uranium and
reposition the Company as an Investment Company in natural resources.
The implementation of the decision has enabled Brinkley Mining to significantly
reduce its annual cash expenditure thereby preserving its cash resources and to
restructure and strengthen its management team. This has placed the Company in a
strong position to enable it to take advantage of the opportunities that are
arising as a consequence of current depressed world-wide market conditions.
Project identification and evaluation
The adoption of the Investment Strategy has provided Company management with the
flexibility to actively seek out and acquire undervalued near-to-cash assets,
which the Board believes, with the injection of cash and the Company's
management expertise, have the potential to create significant value for
Shareholders. Following the completion of the asset disposal process, management
has focused its attention on actively identifying and evaluating suitable assets
for investment.
Disposal of the Company's Chad, DRC and Nigerien Uranium interests.
The Board of Brinkley Mining announced on 3 September 2008 that, following the
completion of a strategic review of the company's assets in the DRC and Chad, it
had decided to close the Company's operations in those countries with immediate
effect. This decision follows the announcement on 30 June 2008 in which the
Company reported that it had written down:
* the value of Chad exploration assets by GBP0.55 million due to the findings of a
review of the initial geological assumptions and the increased political risk
profile for the country.
* the value of the commercial rights and deferred exploration expenditure in
relation to the DRC by a further GBP6.30 million due to the uncertainty
surrounding enforcement of the current agreements.
The process of closing operations in both countries was completed during the
year and the process did not incur any material expenses.
In December the Company sold its 100% subsidiary Brinkley Mining Project 7
Limited ("BMP7"), to Slyder Investments Limited for a cash consideration of US$
0.5 million. BMP7's sole asset was its holding in African Uranium SARL, a
company incorporated in the Republic of Niger whose only material asset was the
Terzemasour 3 exploration licence. This disposal was consistent with the
Company's policy of reducing cash expenditure on projects that only offer a
potential long term return. African Uranium's Terzemasour 3 Permit was such a
project. Under the terms of the mining agreement with the Government of Niger,
African Uranium was committed to a minimum expenditure of US$2.5 million and a
potential payment of US$0.5 million to compensate third parties in Niger
if additional licences that had been applied for by BMP7 were awarded. We
estimated that the initial drilling program would have cost approximately US$3.5
million.
The Disposal of BMP7 thus released the Company from its Nigerien exploration and
other financial commitments which, together with the consideration, amounted to
a total saving of at least US$3.5 million. Whilst the Board believes that the
Terzemasour 3 Permit is situated in a very prospective area in Niger, there
would have been a requirement for extensive additional and costly exploration
over a number of years to identify a uranium resource and produce a
drill-defined resource estimate. The level of consideration paid for BMP7
reflected these financial commitments and the fact that up to the date of the
transaction there had been no drilling on the property and so no resource nor
reserve of any kind had been delineated.
South Africa
Brinkley Mining's subsidiary, Western Uranium (Pty) Ltd, has as its only asset,
the Waterval prospect in the Karoo region of South Africa ("Waterval"). The
Company completed a review of all available geological and sample data for
Waterval, much of which was collected during the 2007 drilling program, which
confirmed that the project contained a small Uranium resource but that the grade
and limited tonnage were insufficient to support the establishment of a
stand-alone operation to exploit it. The delineated resource is, however, large
enough that it could make a meaningful contribution to other uranium exploration
companies' active in the Karoo region to enable them to achieve the critical
mass in their resource inventory to justify establishing a uranium mining and
processing operation. Accordingly, the Board has commenced a review of the other
Karoo-based Uranium exploration companies who could be interested in acquiring
Waterval.
The geological model prepared by the Company suggests there is a small, albeit
limited, potential for the delineation of additional resources within Waterval.
Accordingly, any further exploration effort will focus on extending the resource
envelope by means of drilling and radiometrically probing selected percussion
holes in an area located to the north east of the delineated resource. An amount
of GBP49,000 has been budgeted for this work.
The existing 3 year exploration licence expired on 8 February 2009 and an
application for the licence to be renewed for a further period of two years was
submitted to the Western Cape Regional office of the Department of Mineral and
Energy Affairs (DME) on 11 November 2008. The DME Regional Office has completed
processing the application and has forwarded it to the DME National Head office
in Pretoria for final approval. There is no reason to believe that the
application will not be granted.
The Directors have reduced the carrying value of Waterval and its other
interests in South Africa to GBP100,000 as at the Balance Sheet date.
Southern Sudan
Brinkley Mining's wholly-owned subsidiary, Brinkley Mining Project 4 Ltd, has a
provisional prospecting license ("PPL") for the exclusive exploration of Uranium
and associated minerals over an area of over 5,000km² of Budi County, Eastern
Equatoria State, Southern Sudan. The PPL was effective until 21 February 2009
and is renewable annually thereafter. Application for renewal was submitted to
the Southern Sudanese authorities on 18 February 2009 and is currently being
processed. There is no reason to believe that the application will not be
granted. The PPL, however, is deemed provisional as there currently exists no
formal mining law in Southern Sudan and accordingly there can be no certainty
that on introduction of a formal mining law that the PPL will be renewed or
continue to be valid.
The exploration program is being carried out through a joint venture agreement
with New Kush Exploration and Mining Company Limited.
The main exploration effort during 2008 jointly funded by the Joint Venture
consisted of flying 59,000 line km airborne aeromagnetic and radiometric survey
of the property. Since then, work has focused on interpreting the aeromagnetic
and radiometric data and integrating it with a detailed Landsat interpretation
to produce a GIS based regional-scale map of the geology of the Budi concession
area. A comprehensive fieldwork program is planned for late in the year after
the end of the rainy season. The fieldwork will include mapping, stream sampling
and radiometric sampling.
The Directors have reduced the carrying value of the Company's interests in
Southern Sudan to GBP199,572 as at the Balance Sheet date.
Dunbar Dales
Chief Executive Officer
29 April 2009
+--------------------------------------------------+-----------------------+
| For further information, please contact: | |
+--------------------------------------------------+-----------------------+
| Brinkley Mining Plc | |
+--------------------------------------------------+-----------------------+
| Dunbar Dales, Chief Executive Officer | Tel: +27 |
| | (0) 83 |
| | 258 9062 |
+--------------------------------------------------+-----------------------+
| | |
+--------------------------------------------------+-----------------------+
| Beaumont Cornish Limited (Nominated Adviser) | |
+--------------------------------------------------+-----------------------+
| Michael Cornish | Tel: +44 |
| | (0) 20 |
| | 7628 |
| | 3396 |
+--------------------------------------------------+-----------------------+
| | |
+--------------------------------------------------+-----------------------+
Qualified Person
Dunbar Dales (Chief Executive Officer and a Director of the Company) has
reviewed the information contained in this announcement. Dunbar Dales, aged 59,
has extensive experience in the minerals industry, holds a BSc (Hons) in Geology
from the University of Cape Town and an MSc in Sedimentology from the University
of Reading and an MBA from the University of Cape Town. Dunbar Dales has
compiled, read and approved the technical disclosures in this regulatory
announcement.
Group Income Statement
for the year ended 31 December 2008
+-----------------------------------+---------------+----------------+----------------+
| | | Year ended 31 | Year ended 31 |
| | | December 2008 | December 2007 |
+ +---------------+----------------+----------------+
| | Notes | GBP 000's | GBP 000's |
+-----------------------------------+-----------------------------------+---------------+----------------+
| | | | |
+-----------------------------------+---------------+----------------+----------------+
| Turnover | | - | - |
+-----------------------------------+---------------+----------------+----------------+
| Other Income | | 15 | - |
+-----------------------------------+---------------+----------------+----------------+
| Administrative expenses | | (2,238) | (1,448) |
+-----------------------------------+---------------+----------------+----------------+
| Loss on disposals | | (2,046) | - |
+-----------------------------------+---------------+----------------+----------------+
| Impairment charge | 10,11, 12 | (9,306) | (6,000) |
+-----------------------------------+---------------+----------------+----------------+
| Share options expensed | 7, 17 | 127 | (1,194) |
+-----------------------------------+---------------+----------------+----------------+
| Group operating loss | 3 | (13,448) | (8,642) |
+-----------------------------------+---------------+----------------+----------------+
| | | | |
+-----------------------------------+---------------+----------------+----------------+
| Finance revenue | 9 | 400 | 742 |
+-----------------------------------+---------------+----------------+----------------+
| Loss before taxation | 2 | (13,048) | (7,900) |
+-----------------------------------+---------------+----------------+----------------+
| | | | |
+-----------------------------------+---------------+----------------+----------------+
| Income tax expense | 5 | - | - |
+-----------------------------------+---------------+----------------+----------------+
| Loss after taxation | | (13,048) | (7,900) |
+-----------------------------------+---------------+----------------+----------------+
| | | | |
+-----------------------------------+---------------+----------------+----------------+
| Retained (loss) for the year | | (13,048) | (7,900) |
+-----------------------------------+---------------+----------------+----------------+
| Attributable to: | | | |
+-----------------------------------+---------------+----------------+----------------+
| Equity holders of the parent | | (12,524) | (7,900) |
+-----------------------------------+---------------+----------------+----------------+
| Minority interests | | (524) | - |
+-----------------------------------+---------------+----------------+----------------+
| | | (13,048) | (7,900) |
+-----------------------------------+---------------+----------------+----------------+
| Loss per share (Pence) | | | |
+-----------------------------------+---------------+----------------+----------------+
| Basic | 8 | (3.66) | (2.39) |
+-----------------------------------+---------------+----------------+----------------+
| Diluted | 8 | (3.66) | (2.39) |
+-----------------------------------+---------------+----------------+----------------+
| | | | |
+-----------------------------------+---------------+----------------+----------------+
| All of the operations are considered to be | | |
| continuing. | | |
+-----------------------------------+---------------+----------------+----------------+
Group Balance Sheet
as at 31 December 2008
+------------------------------+------+------+------+----------+------+------+---------+
| | | 31 December 2008 | 31 December 2007 |
| | | | |
+------------------------------+------+------------------------+-----------------------+
| | Note | GBP 000's | GBP | GBP 000's | GBP |
| | | | 000's | | 000's |
+------------------------------+------+-------------+----------+-------------+---------+
| ASSETS | | | | | |
+------------------------------+------+-------------+----------+-------------+---------+
| Non-current assets | | | | | |
+------------------------------+------+-------------+----------+-------------+---------+
| Intangible assets | 10 | 299 | | 9,493 | |
+------------------------------+------+-------------+----------+-------------+---------+
| Tangible assets | 11 | 305 | | 2,816 | |
+------------------------------+------+-------------+----------+-------------+---------+
| Total non-current assets | | | 604 | | 12,309 |
+------------------------------+------+-------------+----------+-------------+---------+
| | | | | | |
+------------------------------+------+-------------+----------+-------------+---------+
| Current assets | | | | | |
+------------------------------+------+-------------+----------+-------------+ +
| Cash and cash equivalents | | 7,322 | | 11,126 | |
+------------------------------+------+-------------+----------+-------------+ +
| Trade and other receivables | 14 | 138 | | 127 | |
| | | | | | |
+------------------------------+------+-------------+----------+-------------+---------+
| Total current assets | | | 7,460 | | 11,253 |
+------------------------------+------+-------------+----------+-------------+---------+
| | | | | | |
+------------------------------+------+-------------+----------+-------------+---------+
| TOTAL ASSETS | | | 8,064 | | 23,562 |
+------------------------------+------+-------------+----------+-------------+---------+
| | | | | | |
+------------------------------+------+-------------+----------+-------------+---------+
| LIABILITIES | | | | | |
+------------------------------+------+-------------+----------+-------------+---------+
| Current liabilities | | | | | |
+------------------------------+------+-------------+----------+-------------+ +
| Trade and other payables | 15 | (176) | | (243) | |
+------------------------------+------+-------------+----------+-------------+---------+
| TOTAL LIABILITIES | | | (176) | | (243) |
+------------------------------+------+-------------+----------+-------------+---------+
| NET ASSETS | | | 7,888 | | 23,319 |
+------------------------------+------+-------------+----------+-------------+---------+
| | | | | | |
+------------------------------+------+-------------+----------+-------------+---------+
| EQUITY | | | | | |
+------------------------------+------+-------------+----------+-------------+ +
| Called-up share capital | 16 | 535 | | 535 | |
+------------------------------+------+-------------+----------+-------------+ +
| Share premium | | 27,774 | | 27,774 | |
+------------------------------+------+-------------+----------+-------------+ +
| Merger reserve | | - | | 2,033 | |
+------------------------------+------+-------------+----------+-------------+ +
| Share based payments reserve | 17 | 3,439 | | 3,566 | |
+------------------------------+------+-------------+----------+-------------+ +
| Retained earnings | | (23,066) | | (10,542) | |
+------------------------------+------+-------------+----------+-------------+---------+
| Foreign exchange reserve | | (270) | | (47) | |
+------------------------------+------+-------------+----------+-------------+---------+
| Total Equity attributable to | | 8,412 | | 23,319 | |
| equity holders of the parent | | | | | |
+------------------------------+------+-------------+----------+-------------+---------+
| | | | | | |
+------------------------------+------+-------------+----------+-------------+---------+
| Minority interests | | (524) | | - | |
+------------------------------+------+-------------+----------+-------------+---------+
| | | | | | |
+------------------------------+------+-------------+----------+-------------+---------+
| TOTAL EQUITY | | | 7,888 | | 23,319 |
+------------------------------+------+-------------+----------+-------------+---------+
| These financial statements were approved by the Board of Directors on 29 April 2009 |
| and signed on its behalf by: |
| |
+--------------------------------------------------------------------------------------+
| Mark Fresson | Dunbar Dales | |
+--------------------------------------------+------------------------+----------------+
| Director | Director | |
+------------------------------+------+------+------+----------+------+------+---------+
Company Balance Sheet
as at 31 December 2008
+----------------------+-------+------------+--------------+----------+------------+
| | | 31 December 2008 | 31 December 2007 |
+----------------------+-------+---------------------------+-----------------------+
| |Notes | |
+----------------------+-------+---------------------------------------------------+
| | | GBP 000's | GBP 000's | GBP | GBP 000's |
| | | | | 000's | |
+----------------------+-------+------------+--------------+----------+------------+
| ASSETS | | | | | |
+----------------------+-------+------------+--------------+----------+------------+
| Non-current assets | | | | | |
+----------------------+-------+------------+--------------+----------+------------+
| Investment in | 13 | 3 | | 3 | |
| subsidiaries | | | | | |
+----------------------+-------+------------+--------------+----------+------------+
| Trade and other | 14 | 4,272 | | 23,987 | |
| receivables | | | | | |
+----------------------+-------+------------+--------------+----------+------------+
| Total non-current | | | 4,275 | | 23,990 |
| assets | | | | | |
+----------------------+-------+------------+--------------+----------+------------+
| | | | | | |
+----------------------+-------+------------+--------------+----------+------------+
| Current assets | | | | | |
+----------------------+-------+------------+--------------+----------+ +
| Cash and cash | | 7,304 | | 11,017 | |
| equivalents | | | | | |
+----------------------+-------+------------+--------------+----------+ +
| Trade and other | 14 | 79 | | 66 | |
| receivables | | | | | |
+----------------------+-------+------------+--------------+----------+------------+
| Total Current Assets | | | 7,383 | | 11,083 |
+----------------------+-------+------------+--------------+----------+------------+
| TOTAL ASSETS | | | 11,658 | | 35,073 |
+----------------------+-------+------------+--------------+----------+------------+
| | | | | | |
+----------------------+-------+------------+--------------+----------+------------+
| LIABILITIES | | | | | |
+----------------------+-------+------------+--------------+----------+------------+
| Current Liabilities | | | | | |
+----------------------+-------+------------+--------------+----------+ +
| Trade and other | 15 | (69) | | (109) | |
| payables | | | | | |
+----------------------+-------+------------+--------------+----------+------------+
| TOTAL LIABILITIES | | | (69) | | (109) |
+----------------------+-------+------------+--------------+----------+------------+
| NET ASSETS | | | 11,589 | | 34,964 |
+----------------------+-------+------------+--------------+----------+------------+
| | | | | | |
+----------------------+-------+------------+--------------+----------+------------+
| EQUITY | | | | | |
+----------------------+-------+------------+--------------+----------+ +
| Called-up share | 16 | 535 | | 535 | |
| capital | | | | | |
+----------------------+-------+------------+--------------+----------+ +
| Share premium | | 27,774 | | 27,774 | |
+----------------------+-------+------------+--------------+----------+ +
| Merger reserve | | - | | 7,033 | |
+----------------------+-------+------------+--------------+----------+------------+
| Share based payments | 17 | 3,439 | | 3,566 | |
| reserve | | | | | |
+----------------------+-------+------------+--------------+----------+------------+
| Retained earnings | 25 | (20,159) | | (3,944) | |
+----------------------+-------+------------+--------------+----------+------------+
| | | | | | |
+----------------------+-------+------------+--------------+----------+------------+
| TOTAL EQUITY | | | 11,589 | | 34,964 |
+----------------------+-------+------------+--------------+----------+------------+
| These financial statements were approved by the Board of Directors on 29 April |
| 2009 and signed on its behalf by: |
| |
+----------------------+-------+------------+--------------+----------+------------+
+---------------------------------+--+--+-----------------+----------+------------+
| | |
+---------------------------------------+-----------------------------------------+
| Mark Fresson | | | Dunbar Dales | | |
+---------------------------------+--+--+-----------------+----------+------------+
| Director | | | Director | | |
+---------------------------------+--+--+-----------------+----------+------------+
Group Cash Flow Statement
for the year ended 31 December 2008
+------------------------------------+-------+----------------+------------------+
| | | For the year | For the year |
| | | ended 31 | ended |
| | | December 2008 | 31 December 2007 |
+------------------------------------+-------+----------------+------------------+
| |Notes | GBP 000's | GBP 000's |
+------------------------------------+-------+----------------+------------------+
| Cash flows from operating | | | |
| activities | | | |
+------------------------------------+-------+----------------+------------------+
| Operating Loss | | (13,448) | (8,642) |
+------------------------------------+-------+----------------+------------------+
| (Increase)/decrease in trade and | | (11) | 348 |
| other receivables | | | |
+------------------------------------+-------+----------------+------------------+
| (Decrease)/increase in trade and | | (67) | 51 |
| other payables | | | |
+------------------------------------+-------+----------------+------------------+
| Foreign exchange translation | | - | - |
+------------------------------------+-------+----------------+------------------+
| Share options expensed | | (127) | 1,194 |
+------------------------------------+-------+----------------+------------------+
| Impairment charge | | 9,306 | 6,000 |
+------------------------------------+-------+----------------+------------------+
| Depreciation | | 55 | 59 |
+------------------------------------+-------+----------------+------------------+
| Foreign exchange movements in | | 880 | - |
| Intangibles | | | |
+------------------------------------+-------+----------------+------------------+
| Foreign exchange movements in | | 77 | - |
| Tangibles | | | |
+------------------------------------+-------+----------------+------------------+
| Loss on disposal of subsidiary and | | 2,046 | - |
| plant & machinery | | | |
+------------------------------------+-------+----------------+------------------+
| | | | |
+------------------------------------+-------+----------------+------------------+
| Net cash outflow from operating | | (1,289) | (990) |
| activities | | | |
+------------------------------------+-------+----------------+------------------+
| | | | |
+------------------------------------+-------+----------------+------------------+
| Cash flows from investing | | | |
| activities | | | |
+------------------------------------+-------+----------------+------------------+
| Interest Received | | 400 | 742 |
+------------------------------------+-------+----------------+------------------+
| Payments to acquire intangible | | (3,002) | (4,443) |
| assets | | | |
+------------------------------------+-------+----------------+------------------+
| Payments to acquire tangible | | (35) | (297) |
| assets | | | |
+------------------------------------+-------+----------------+------------------+
| Net cash outflow from investing | | (2,637) | (3,997) |
| activities | | | |
+------------------------------------+-------+----------------+------------------+
| | | | |
+------------------------------------+-------+----------------+------------------+
| Acquisitions and disposals | | | |
+------------------------------------+-------+----------------+------------------+
| Payments to acquire subsidiaries | | - | (501) |
+------------------------------------+-------+----------------+------------------+
| Sale proceeds received on | | 11 | - |
| disposing of plant & machinery | | | |
+------------------------------------+-------+----------------+------------------+
| Sale proceeds received on | | 334 | |
| disposing of a subsidiary | | | |
+------------------------------------+-------+----------------+------------------+
| Net cash inflow/(outflow) from | | 345 | (501) |
| acquisitions and disposals | | | |
+------------------------------------+-------+----------------+------------------+
| | | | |
+------------------------------------+-------+----------------+------------------+
| Net (decrease) in cash and cash | | (3,581) | (5,489) |
| equivalents | | | |
+------------------------------------+-------+----------------+------------------+
| Cash and cash equivalents at | | 11,126 | 16,615 |
| beginning of period | | | |
+------------------------------------+-------+----------------+------------------+
| Foreign exchange movements in | | (223) | - |
| reserves | | | |
+------------------------------------+-------+----------------+------------------+
| Cash and cash equivalents at end | 18 | 7,322 | 11,126 |
| of period | | | |
+------------------------------------+-------+----------------+------------------+
Company Cash Flow Statement
for the year ended 31 December 2008
+------------------------------------+-------+----------------+------------------+
| | | For the year | For the year |
| | | ended 31 | ended |
| | | December 2008 | 31 December 2007 |
| | | | |
+------------------------------------+-------+----------------+------------------+
| |Notes | GBP 000's | GBP 000's |
+------------------------------------+-------+----------------+------------------+
| Cash flows from operating | | | |
| activities | | | |
+------------------------------------+-------+----------------+------------------+
| Operating Loss | | (16,613) | (2,112) |
+------------------------------------+-------+----------------+------------------+
| (Increase)/decrease in trade and | | (13) | 25 |
| other receivables | | | |
+------------------------------------+-------+----------------+------------------+
| (Decrease) in trade and other | | (40) | (38) |
| payables | | | |
+------------------------------------+-------+----------------+------------------+
| Share options expensed | | (127) | 1,194 |
+------------------------------------+-------+----------------+------------------+
| Impairment charge | | 15,311 | - |
+------------------------------------+-------+----------------+------------------+
| Net cash (out)flow from operating | | (1,482) | (931) |
| activities | | | |
+------------------------------------+-------+----------------+------------------+
| | | | |
+------------------------------------+-------+----------------+------------------+
| Cash flows from investing | | | |
| activities | | | |
+------------------------------------+-------+----------------+------------------+
| Interest Received | | 397 | 742 |
+------------------------------------+-------+----------------+------------------+
| Loans to subsidiaries | | (2,628) | (4,912) |
+------------------------------------+-------+----------------+------------------+
| Net cash outflow from in investing | | (2,231) | (4,170) |
| activities | | | |
+------------------------------------+-------+----------------+------------------+
| | | | |
+------------------------------------+-------+----------------+------------------+
| Acquisitions and disposals | | | |
+------------------------------------+-------+----------------+------------------+
| Payments to acquire subsidiaries | | - | (490) |
+------------------------------------+-------+----------------+------------------+
| Net cash outflow from acquisitions | | - | (490) |
| and disposals | | | |
+------------------------------------+-------+----------------+------------------+
| | | | |
+------------------------------------+-------+----------------+------------------+
| Cash flows from financing | | | |
| activities | | | |
+------------------------------------+-------+----------------+------------------+
| Issue of ordinary share capital | | - | - |
+------------------------------------+-------+----------------+------------------+
| Share issue costs | | - | - |
+------------------------------------+-------+----------------+------------------+
| Net cash inflow from financing | | - | - |
| activities | | | |
+------------------------------------+-------+----------------+------------------+
| | | | |
+------------------------------------+-------+----------------+------------------+
| Net (decrease) in cash and cash | | (3,713) | (5,591) |
| equivalents | | | |
+------------------------------------+-------+----------------+------------------+
| Cash and cash equivalents at | | 11,017 | 16,608 |
| beginning of period | | | |
+------------------------------------+-------+----------------+------------------+
| Cash and cash equivalents at end | 18 | 7,304 | 11,017 |
| of period | | | |
+------------------------------------+-------+----------------+------------------+
| | | | |
+------------------------------------+-------+----------------+------------------+
Statement of Changes in Equity
For the year ended 31 December 2008
+--------------+---------+---------+---------+----------+----------+----------+--------------+----------+----------+
| | Called | Share | Merger | Share |Retained | Foreign | Total |Minority | Total |
| | up |premium |reserve | based |earnings |exchange | equity |Interest | equity |
| | share |reserve | | payment | | reserve |attributable | | |
| |capital | | | reserve | | | to equity | | |
| | | | | | | | holders of | | |
| | | | | | | | the parent | | |
+--------------+---------+---------+---------+----------+----------+----------+--------------+----------+----------+
| Group | GBP | GBP | GBP | GBP | GBP | GBP | GBP | GBP | GBP |
| | 000's | 000's | 000's | 000's | 000's | 000's | 000's | 000's | 000's |
+--------------+---------+---------+---------+----------+----------+----------+--------------+----------+----------+
| As at 31 | 465 | 19,535 | 7,033 | 2,372 | (2,642) | (47) | 26,716 | - | 26,716 |
| December | | | | | | | | | |
| 2006 | | | | | | | | | |
+--------------+---------+---------+---------+----------+----------+----------+--------------+----------+----------+
| Share | 70 | 8,239 | - | - | - | - | 8,309 | - | 8,309 |
| capital | | | | | | | | | |
| issued | | | | | | | | | |
+--------------+---------+---------+---------+----------+----------+----------+--------------+----------+----------+
| Cost of | - | - | - | - | - | - | - | - | - |
| share issue | | | | | | | | | |
+--------------+---------+---------+---------+----------+----------+----------+--------------+----------+----------+
| Impairment | - | - | (5,000) | - | - | - | (5,000) | - | (5,000) |
| charge | | | | | | | | | |
+--------------+---------+---------+---------+----------+----------+----------+--------------+----------+----------+
| Loss for the | - | - | - | - | (7,900) | - | (7,900) | - | (7,900) |
| year | | | | | | | | | |
+--------------+---------+---------+---------+----------+----------+----------+--------------+----------+----------+
| Share based | - | - | - | 1,194 | - | - | 1,194 | - | 1,194 |
| payments | | | | | | | | | |
+--------------+---------+---------+---------+----------+----------+----------+--------------+----------+----------+
| As at 31 | 535 | 27,774 | 2,033 | 3,566 | (10,542) | (47) | 23,319 | - | 23,319 |
| December | | | | | | | | | |
| 2007 | | | | | | | | | |
+--------------+---------+---------+---------+----------+----------+----------+--------------+----------+----------+
| Loss for the | - | - | - | - | (12,524) | - | (12,524) | (524) | (13,048) |
| year | | | | | | | | | |
+--------------+---------+---------+---------+----------+----------+----------+--------------+----------+----------+
| Currency | - | - | - | - | - | (223) | (223) | - | (223) |
| translation | | | | | | | | | |
| differences | | | | | | | | | |
+--------------+---------+---------+---------+----------+----------+----------+--------------+----------+----------+
| Total | - | - | - | - | (12,524) | (223) | (12,747) | (524) | (13,271) |
| recognised | | | | | | | | | |
| income and | | | | | | | | | |
| expense | | | | | | | | | |
+--------------+---------+---------+---------+----------+----------+----------+--------------+----------+----------+
| Share | - | - | - | - | - | - | - | - | - |
| capital | | | | | | | | | |
| issued | | | | | | | | | |
+--------------+---------+---------+---------+----------+----------+----------+--------------+----------+----------+
| Cost of | - | - | - | - | - | - | - | - | - |
| Share issue | | | | | | | | | |
+--------------+---------+---------+---------+----------+----------+----------+--------------+----------+----------+
| Impairment | - | - | (2,033) | - | - | - | (2,033) | - | (2,033) |
| charge | | | | | | | | | |
+--------------+---------+---------+---------+----------+----------+----------+--------------+----------+----------+
| Share based | - | - | - | (127) | - | - | (127) | - | (127) |
| payments | | | | | | | | | |
+--------------+---------+---------+---------+----------+----------+----------+--------------+----------+----------+
| As at 31 | 535 | 27,774 | - | 3,439 | (23,066) | (270) | 8,412 | (524) | 7,888 |
| December | | | | | | | | | |
| 2008 | | | | | | | | | |
+--------------+---------+---------+---------+----------+----------+----------+--------------+----------+----------+
| | | | | | | | | | |
+--------------+---------+---------+---------+----------+----------+----------+--------------+----------+----------+
Statement of Changes in Equity continued
For the year ended 31 December
2008
+-------------+----------+---------+---------+----------+----------+------------+
| | Called | Share | Merger | Share |Retained | Total |
| |up share |premium |reserve | based |earnings | equity |
| | capital |reserve | | payment | | |
| | | | | reserve | | |
+-------------+----------+---------+---------+----------+----------+------------+
| Company | GBP | GBP | GBP | GBP | GBP | GBP 000's |
| | 000's | 000's | 000's | 000's | 000's | |
+-------------+----------+---------+---------+----------+----------+------------+
| As at 31 | 465 | 19,535 | 7,033 | 2,372 | (2,574) | 26,831 |
| December | | | | | | |
| 2006 | | | | | | |
+-------------+----------+---------+---------+----------+----------+------------+
| Share | 70 | 8,239 | - | - | - | 8,309 |
| capital | | | | | | |
| issued | | | | | | |
+-------------+----------+---------+---------+----------+----------+------------+
| Cost of | - | - | - | - | - | - |
| share issue | | | | | | |
+-------------+----------+---------+---------+----------+----------+------------+
| Loss for | - | - | - | - | (1,370) | (1,370) |
| the year | | | | | | |
+-------------+----------+---------+---------+----------+----------+------------+
| Share based | - | - | - | 1,194 | - | 1,194 |
| payments | | | | | | |
+-------------+----------+---------+---------+----------+----------+------------+
| | | | | | | |
+-------------+----------+---------+---------+----------+----------+------------+
| As at 31 | 535 | 27,774 | 7,033 | 3,566 | (3,944) | 34,964 |
| December | | | | | | |
| 2007 | | | | | | |
+-------------+----------+---------+---------+----------+----------+------------+
| | | | | | | |
+-------------+----------+---------+---------+----------+----------+------------+
| Impairment | - | - | (5,000) | - | - | (5,000) |
| charge on | | | | | | |
| subsidiary, | | | | | | |
| re: 2007 | | | | | | |
+-------------+----------+---------+---------+----------+----------+------------+
| Share | - | - | - | - | - | - |
| capital | | | | | | |
| issued | | | | | | |
+-------------+----------+---------+---------+----------+----------+------------+
| Cost of | - | - | - | - | - | - |
| share issue | | | | | | |
+-------------+----------+---------+---------+----------+----------+------------+
| Impairment | - | - | (2,033) | - | - | (2,033) |
| charge | | | | | | |
+-------------+----------+---------+---------+----------+----------+------------+
| Loss for | - | - | - | - | (16,215) | (16,215) |
| the year | | | | | | |
+-------------+----------+---------+---------+----------+----------+------------+
| Share based | - | - | - | (127) | - | (127) |
| payments | | | | | | |
+-------------+----------+---------+---------+----------+----------+------------+
| | | | | | | |
+-------------+----------+---------+---------+----------+----------+------------+
| As at 31 | 535 | 27,774 | - | 3,439 | (20,159) | 11,589 |
| December | | | | | | |
| 2008 | | | | | | |
+-------------+----------+---------+---------+----------+----------+------------+
+-----+-------------------------------------------------------------------------+
| Notes to the Financial Statements |
| for the year ended 31 December 2008 |
| |
+-------------------------------------------------------------------------------+
| 1 | Summary of Significant Accounting Policies |
+-----+-------------------------------------------------------------------------+
| (a) | Authorisation of financial statements |
| | |
+-----+-------------------------------------------------------------------------+
| | The Group financial statements of Brinkley Mining Plc for the year |
| | ended 31 December 2008 were authorised for issue by the Board on 29 |
| | April 2009 and the balance sheets signed on the Board's behalf by Mr. |
| | Mark Fresson and Mr. Dunbar Dales. The Company is a public limited |
| | Company incorporated in England & Wales under the Companies Act 1985. |
| | The Company's ordinary shares are traded on the AIM Market operated by |
| | the London Stock Exchange. |
| | |
+-----+-------------------------------------------------------------------------+
| (b) | Statement of compliance with IFRS |
+-----+-------------------------------------------------------------------------+
| | The Group's financial statements have been prepared in accordance with |
| | International Financial Reporting Standards (IFRS). The Company's |
| | financial statements have been prepared in accordance with IFRS as |
| | adopted by the European Union and as applied in accordance with the |
| | provisions of the Companies Act 1985. The principal accounting policies |
| | adopted by the Group and Company are set out below. |
| | New standards and interpretations not applied |
| | IASB and IFRIC have issued the following standards and interpretations |
| | with an effective date after the date of these financial statements: |
| | International Accounting Standards (IAS / IFRSs) and (Effective date) |
| | IFRS 1 First time Adoption of International Financial Reporting |
| | Standards and Consolidated and Separate Financial Statements (1 January |
| | 2009) |
| | IFRS 2 Amendment to IFRS 2 - Vesting Conditions and Cancellations (1 |
| | January 2009) |
| | IFRS 3 Business Combinations - revised January 2008 (1 July 2009) |
| | IFRS 8 Operating Segments (1 January 2009) |
| | IAS 1 Presentation of Financial Statements - revised September 2007 (1 |
| | January 2009) |
| | IAS 23 Borrowing Costs - revised March 2007 (1 January 2009) |
| | IAS 27 Consolidated and Separate Financial Statements - revised January |
| | 2008 (1 July 2009) |
| | IAS 32 Financial Instruments: Disclosure and Presentation and IAS 1 |
| | Presentation of Financial Statements (1 January 2009) |
| | Improvements to IFRSs - May 2008 (1 January 2009) |
| | IAS 39 Financial Instruments: Recognition and Measurement (1 January |
| | 2009) |
| | International Financial Reporting Interpretations Committee (IFRIC) |
| | IFRIC 13 Customer Loyalty Programmes (1 July 2008) |
| | IFRIC 15 Agreements for the construction of real estate (1 January |
| | 2009) |
| | IFRIC 16 Hedges of a net investment in a foreign operation (1 October |
| | 2008) |
| | The amendment to IFRS 2 restricts the definition of vesting conditions |
| | to include only service conditions (requiring a specified period of |
| | service to be completed) and performance conditions (requiring the |
| | other party to achieve a personal goal or contribute to achieving a |
| | corporate target). All other features are not vesting conditions, and |
| | whereas a failure to achieve such a condition was previously regarded |
| | as a forfeiture (giving rise to a reversal of amounts previously |
| | charged to profit) it must be reflected in the grant date fair value of |
| | the award and treated as a cancellation, which results in either an |
| | acceleration of the expected charge, or a continuation over the |
| | remaining vesting period, depending on whether the condition is under |
| | the control of the entity or counterparty. The amendment is mandatory |
| | for periods beginning on or after 1 January 2009 and the Group is |
| | currently assessing its impact on the financial statements, although it |
| | is not expected to be material. |
| | |
+-----+-------------------------------------------------------------------------+
+-----+--------------+--------------+--------------+--------------+------------------+
| (c) | Basis of preparation |
+-----+------------------------------------------------------------------------------+
| | The consolidated financial statements have been prepared on the historical |
| | cost basis, except for the measurement to fair value of assets and financial |
| | instruments as described in the accounting policies below, and on a going |
| | concern basis. |
| | The financial report is presented in Sterling and all values are rounded to |
| | the nearest thousand pounds (GBP'000) unless otherwise stated. |
| | |
+-----+------------------------------------------------------------------------------+
| (d) | Basis of consolidation |
+-----+------------------------------------------------------------------------------+
| | The consolidated financial information incorporates the results of the |
| | Company and its subsidiaries (the "Group") using the purchase method. In the |
| | consolidated balance sheet, the acquiree's identifiable assets, liabilities |
| | are initially recognised at their fair values at the acquisition date. The |
| | results of acquired operations are included in the consolidated income |
| | statement from the date on which control is obtained. Inter-company |
| | transactions and balances between Group companies are eliminated in full. |
| | |
+-----+------------------------------------------------------------------------------+
| | Minority interests represent the portion of profit or loss and net assets in |
| | subsidiaries that are not held by the Group and are presented separately in |
| | the income statement and within equity in the consolidated balance sheet. |
+-----+------------------------------------------------------------------------------+
| | | | | | |
+-----+--------------+--------------+--------------+--------------+------------------+
| (e) | Business combinations | | | |
+-----+-----------------------------+--------------+--------------+------------------+
| | The acquisition of subsidiaries in a business combination is accounted for |
| | using the purchase method. The cost of the acquisition is measured at the |
| | aggregate of the fair values, at the date of exchange, of assets given, |
| | liabilities incurred or assumed, and equity instruments issued by the Group |
| | in exchange for control of the acquiree, plus any costs directly |
| | attributable to the business combination. The acquiree's identifiable |
| | assets, liabilities and contingent liabilities that meet the conditions for |
| | recognition under IFRS 3 are recognised at their fair value at the |
| | acquisition date, except for non-current assets (or disposal groups) that |
| | are classified as held for sale in accordance with IFRS 5 'Non Current |
| | Assets Held for Sale and Discontinued Operations', which are recognised and |
| | measured at fair value less costs to sell. |
| | Where there is a difference between the Group's interest in the net fair |
| | value of the acquiree's identifiable assets, liabilities and contingent |
| | liabilities and the cost of the business combination, any excess cost is |
| | recognised in the balance sheet as goodwill and any excess net fair value is |
| | recognised immediately in the income statement as negative goodwill on |
| | acquisition of subsidiary. |
| | The interest of minority shareholders in the acquiree is initially measured |
| | at the minority's proportion of the net fair value of the assets, |
| | liabilities and contingent liabilities recognised. |
| | |
+-----+------------------------------------------------------------------------------+
| (f) | Revenue | | | | |
+-----+--------------+--------------+--------------+--------------+------------------+
| | The Group had no revenue during the period ending 31 December 2008. |
| | |
+-----+------------------------------------------------------------------------------+
| (g) | Foreign currencies | | | |
+-----+-----------------------------+--------------+--------------+------------------+
| | The Company's functional currency is Sterling (GBP). Each entity in the |
| | Group determines its own functional currency and items included in the |
| | financial statements of each entity are measured using that functional |
| | currency. As at the reporting date the assets and liabilities of these |
| | subsidiaries are translated into the presentation currency of Brinkley |
| | Mining Plc at the rate of exchange ruling at the balance sheet date and |
| | their income statements are translated at the average exchange rate for the |
| | year. The exchange differences arising on the translation are taken directly |
| | to a separate component of equity. |
| | All other differences are taken to the income statement with the exception |
| | of differences on foreign currency borrowings, which, to the extent that |
| | they are used to finance or provide a hedge against foreign equity |
| | investments, are taken directly to reserves to the extent of the exchange |
| | difference arising on the net investment in these enterprises. Tax charges |
| | or credits that are directly and solely attributable to such exchange |
| | differences are also taken to reserves. |
| | |
+-----+--------------+--------------+--------------+--------------+------------------+
+-----+-------------------------------------------------------------------------+
| (h) | Goodwill and intangible assets |
| | |
+-----+-------------------------------------------------------------------------+
| | Intangible assets are recorded at cost less eventual amortisation and |
| | provision for impairment in value. Goodwill on consolidation is |
| | capitalised and shown within fixed assets. Positive goodwill is subject |
| | to an annual impairment review, and negative goodwill is immediately |
| | written-off to the income statement when it arises. |
+-----+-------------------------------------------------------------------------+
| | |
+-----+-------------------------------------------------------------------------+
| (i) | Exploration and development costs |
+-----+-------------------------------------------------------------------------+
| | Exploration and development costs are carried forward in respect of |
| | areas of interest where the consolidated entity's rights to tenure are |
| | current and where these costs are expected to be recouped through |
| | successful development and exploration, or by sale. Alternatively, |
| | these costs are carried forward while active and significant operations |
| | are continuing in relation to the areas of interest and it is too early |
| | to make reasonable assessment of the existence or otherwise of |
| | economically recoverable reserves. When the area of interest is |
| | abandoned, exploration and evaluation costs previously capitalised are |
| | written off to the Income Statement. |
| | |
+-----+-------------------------------------------------------------------------+
| | In accordance with the full cost method, all costs associated with |
| | mining development and investment are capitalised on a |
| | project-by-project basis pending determination of the feasibility of |
| | the project. Costs incurred include appropriate technical and |
| | administrative expenses but not general overheads. If a mining |
| | development project is successful, the related expenditures will be |
| | written-off over the estimated life of the commercial ore reserves on a |
| | unit of production basis. Impairment reviews will be carried out |
| | regularly by the Directors of the Company. Where a project is |
| | abandoned, or is considered to be of no further commercial value to the |
| | Company, the related costs will be written off. |
+-----+-------------------------------------------------------------------------+
| | The recoverability of deferred mining costs and mining interests is |
| | dependent upon the discovery of economically recoverable reserves, the |
| | ability of the Group to obtain necessary financing to complete the |
| | development of reserves and future profitable production or proceeds |
| | from the disposition of recoverable reserves. |
+-----+-------------------------------------------------------------------------+
+------+--------------------------------------------------------------------------+
| (j) | Significant accounting judgments, estimates and assumptions |
+------+--------------------------------------------------------------------------+
| | (i) Significant accounting estimates and assumptions |
+------+--------------------------------------------------------------------------+
| | The carrying amounts of certain assets and liabilities are often |
| | determined based on estimates and assumptions of future events. The key |
| | estimates and assumptions that have a significant risk of causing a |
| | material adjustment to the carrying amounts of certain assets and |
| | liabilities within the next annual reporting period are: |
+------+--------------------------------------------------------------------------+
| | (ii) Impairment of goodwill and intangibles with indefinite useful lives |
+------+--------------------------------------------------------------------------+
| | The Group determines whether goodwill and intangibles with indefinite |
| | useful lives are impaired at least on an annual basis. This requires an |
| | estimation of the recoverable amount of the cash-generating units to |
| | which the goodwill and intangibles with indefinite useful lives are |
| | allocated. |
+------+--------------------------------------------------------------------------+
| | (iii) Share-based payment transactions |
+------+--------------------------------------------------------------------------+
| | The Group measures the cost of equity-settled transactions with |
| | employees by reference to the fair value of the equity instruments at |
| | the date at which they are granted. The fair value is determined using a |
| | Black-Scholes model. |
+------+--------------------------------------------------------------------------+
| | |
+------+--------------------------------------------------------------------------+
| (k) | Finance costs/revenue |
+------+--------------------------------------------------------------------------+
| | Borrowing costs are recognised as an expense when incurred. |
+------+--------------------------------------------------------------------------+
| | |
+------+--------------------------------------------------------------------------+
| | Finance revenue is recognised as interest accrues using the effective |
| | interest method. This is a method of calculating the amortised cost of a |
| | financial asset and allocating the interest income over the relevant |
| | period using the effective interest rate, which is the rate that exactly |
| | discounts estimated future cash receipts through the expected life of |
| | the financial asset to the net carrying amount of the financial asset. |
+------+--------------------------------------------------------------------------+
| | |
+------+--------------------------------------------------------------------------+
| (l) | Cash and cash equivalents |
+------+--------------------------------------------------------------------------+
| | Cash and short-term deposits in the balance sheet comprise cash at bank |
| | and in hand and short-term deposits with an original maturity of three |
| | months or less. |
+------+--------------------------------------------------------------------------+
| | For the purposes of the Cash Flow Statement, cash and cash equivalents |
| | consist of cash and cash equivalents as defined above, net of |
| | outstanding bank overdrafts. |
+------+--------------------------------------------------------------------------+
| (m) | Trade and other receivables |
+------+--------------------------------------------------------------------------+
| | Trade receivables, which generally have 30 day terms, are recognised and |
| | carried at original invoice amount less an allowance for any |
| | uncollectible amounts. |
+------+--------------------------------------------------------------------------+
| | |
+------+--------------------------------------------------------------------------+
| | An allowance for doubtful debts is made when there is objective evidence |
| | that the Group will not be able to collect the debts. Bad debts are |
| | written off when identified. |
+------+--------------------------------------------------------------------------+
| | |
+------+--------------------------------------------------------------------------+
| (n) | Investments |
+------+--------------------------------------------------------------------------+
| | Investments in subsidiary undertakings are stated at cost less any |
| | provision for impairment in value, prior to their elimination on |
| | consolidation. |
| | |
+------+--------------------------------------------------------------------------+
| (o) | Financial instruments |
+------+--------------------------------------------------------------------------+
| | The Group's financial instruments, other than its investments, comprise |
| | cash and items arising directly from its operation such as trade debtors |
| | and trade creditors. The Group has overseas subsidiaries in Cyprus, |
| | South Africa and Seychelles whose expenses are denominated in Sterling, |
| | South African Rand and US Dollars respectively. Market price risk is |
| | inherent in the Group's activities and is accepted as such. |
| | |
+------+--------------------------------------------------------------------------+
| | There is no material difference between the book value and fair value of |
| | the Group's cash. |
+------+--------------------------------------------------------------------------+
+-----+--------------------------------------------------------------------------+
| (p) | Deferred taxation |
+-----+--------------------------------------------------------------------------+
| | Deferred tax is the tax expected to be payable or recoverable on |
| | differences between the carrying amounts of assets and liabilities in |
| | the financial statements and the corresponding tax bases used in the tax |
| | computations, and is accounted for using the balance sheet liability |
| | method. Deferred tax liabilities are generally recognised for all |
| | taxable temporary differences and deferred tax assets are recognised to |
| | the extent that it is probable that taxable profits will be available |
| | against which deductible temporary differences can be utilised. |
+-----+--------------------------------------------------------------------------+
| | Deferred tax is calculated at the tax rates that are expected to apply |
| | in the period when the liability is settled or the asset is realised. |
| | Deferred tax is charged or credited in the income statement, except when |
| | it relates to items charged or credited directly to equity, in which |
| | case it is also dealt with in equity. |
| | |
+-----+--------------------------------------------------------------------------+
| (q) | Merger reserve |
+-----+--------------------------------------------------------------------------+
| | The difference between the fair value of an acquisition and the nominal |
| | value of the shares allotted in a share exchange have been credited to a |
| | merger reserve account, in accordance with the merger relief provisions |
| | of the Companies Act 1985 and accordingly no share premium for such |
| | transactions is set-up. |
+-----+--------------------------------------------------------------------------+
| (r) | Share Based payments Reserve |
+-----+--------------------------------------------------------------------------+
| | This reserve is used to record the value of equity benefits provided to |
| | employees and directors as part of their remuneration and provided to |
| | consultants and advisors hired by the Group from time to time as part of |
| | the consideration paid. |
+-----+--------------------------------------------------------------------------+
| (s) | Foreign Currency Translation Reserve |
+-----+--------------------------------------------------------------------------+
| | The foreign currency translation reserve is used to record exchange |
| | differences arising from the translation of the financial statements of |
| | foreign subsidiaries. |
+-----+--------------------------------------------------------------------------+
| (t) | Property, plant and equipment |
+-----+--------------------------------------------------------------------------+
| | Plant and equipment is stated at cost less accumulated depreciation and |
| | any accumulated impairment losses. Land is measured at fair value less |
| | any impairment losses recognised after the date of revaluation. |
| | Depreciation is provided on all tangible assets to write off the cost |
| | less estimated residual value of each asset over its expected useful |
| | economic life on a straight-line basis at the following annual rates: |
| | Land (including option costs) - Nil |
| | Plant and Equipment - between 5% and 25% |
| | All assets are subject to annual impairment reviews. |
| | |
+-----+--------------------------------------------------------------------------+
|(u) | Impairment of assets |
+-----+--------------------------------------------------------------------------+
| | The Group assesses at each reporting date whether there is an indication |
| | that an asset may be impaired. If any such indication exists, or when |
| | annual impairment testing for an asset is required, the Group makes an |
| | estimate of the asset's recoverable amount. An asset's recoverable |
| | amount is the higher of its fair value less costs to sell and its value |
| | in use and is determined for an individual asset, unless the asset does |
| | not generate cash inflows that are largely independent of those from |
| | other assets or Groups of assets and the asset's value in use cannot be |
| | estimated to be close to its fair value. In such cases the asset is |
| | tested for impairment as part of the cash-generating unit to which it |
| | belongs. When the carrying amount of an asset or cash-generating unit |
| | exceeds its recoverable amount, the asset or cash-generating unit is |
| | considered impaired and is written down to its recoverable amount. |
| | |
+-----+--------------------------------------------------------------------------+
| | In assessing value in use, the estimated future cash flows are |
| | discounted to their present value using a pre-tax discount rate that |
| | reflects current market assessments of the time value of money and the |
| | risks specific to the asset. Impairment losses relating to continuing |
| | operations are recognised in those expense categories consistent with |
| | the function of the impaired asset unless the asset is carried at |
| | revalued amount (in which case the impairment loss is treated as a |
| | revaluation decrease). |
| | |
+-----+--------------------------------------------------------------------------+
+-----+--------------------------------------------------------------------------+
| | An assessment is also made at each reporting date as to whether there is |
| | any indication that previously recognised impairment losses may no |
| | longer exist or may have decreased. If such indication exists, the |
| | recoverable amount is estimated. A previously recognised impairment loss |
| | is reversed only if there has been a change in the estimates used to |
| | determine the asset's recoverable amount since the last impairment loss |
| | was recognised. If that is the case the carrying amount of the asset is |
| | increased to its recoverable amount. That increased amount cannot exceed |
| | the carrying amount that would have been determined, net of |
| | depreciation, had no impairment loss been recognised for the asset in |
| | prior years. Such reversal is recognised in the Income Statement unless |
| | the asset is carried at revalued amount, in which case the reversal is |
| | treated as a revaluation increase. After such a reversal the |
| | depreciation charge is adjusted in future periods to allocate the |
| | asset's revised carrying amount, less any residual value, on a |
| | systematic basis over its remaining useful life. |
| | |
+-----+--------------------------------------------------------------------------+
|(v) | Trade and other payables |
+-----+--------------------------------------------------------------------------+
| | Trade payables and other payables are carried at amortised cost and |
| | represent liabilities for goods and services provided to the Group prior |
| | to the end of the financial year that are unpaid and arise when the |
| | Group becomes obliged to make future payments in respect of the purchase |
| | of these goods and services. |
+-----+--------------------------------------------------------------------------+
| | |
+-----+--------------------------------------------------------------------------+
|(w) | Provisions |
+-----+--------------------------------------------------------------------------+
| | Provisions are recognised when the Group has a present obligation (legal |
| | or constructive) as a result of a past event, it is probable that an |
| | outflow of resources embodying economic benefits will be required to |
| | settle the obligation and a reliable estimate can be made of the amount |
| | of the obligation. |
+-----+--------------------------------------------------------------------------+
| | When the Group expects some or all of a provision to be reimbursed, for |
| | example under an insurance contract, the reimbursement is recognised as |
| | a separate asset but only when the reimbursement is virtually certain. |
| | The expense relating to any provision is presented in the income |
| | statement net of any reimbursement. |
+-----+--------------------------------------------------------------------------+
+------+--------------------------------------------------------------------------+
| (x) | Share-based payment transactions |
+------+--------------------------------------------------------------------------+
| | (i) Equity settled transactions: |
+------+--------------------------------------------------------------------------+
| | The Group provides benefits to employees (including senior executives) |
| | of the Group in the form of share-based payments, whereby employees |
| | render services in exchange for shares or rights over shares |
| | (equity-settled transactions). |
+------+--------------------------------------------------------------------------+
| | The cost of these equity-settled transactions with employees is measured |
| | by reference to the fair value of the equity instruments at the date at |
| | which they are granted. The fair value is determined by using a |
| | Black-Scholes model. |
+------+--------------------------------------------------------------------------+
| | In valuing equity-settled transactions, no account is taken of any |
| | performance conditions, other than conditions linked to the price of the |
| | shares of Brinkley Mining Plc (market conditions) if applicable. |
+------+--------------------------------------------------------------------------+
| | The cost of equity-settled transactions is recognised, together with a |
| | corresponding increase in equity, over the period in which the |
| | performance and/or service conditions are fulfilled, ending on the date |
| | on which the relevant employees become fully entitled to the award (the |
| | vesting period). |
+------+--------------------------------------------------------------------------+
| | The cumulative expense recognised for equity-settled transactions at |
| | each reporting date until vesting date reflects (i) the extent to which |
| | the vesting period has expired and (ii) the Group's best estimate of the |
| | number of equity instruments that will ultimately vest. No adjustment is |
| | made for the likelihood of market performance conditions being met as |
| | the effect of these conditions is included in the determination of fair |
| | value at grant date. The Income Statement charge or credit for a period |
| | represents the movement in cumulative expense recognised as at the |
| | beginning and end of that period. |
+------+--------------------------------------------------------------------------+
| | No expense is recognised for awards that do not ultimately vest, except |
| | for awards where vesting is only conditional upon a market condition. |
+------+--------------------------------------------------------------------------+
| | If the terms of an equity-settled award are modified, as a minimum an |
| | expense is recognised as if the terms had not been modified. In |
| | addition, an expense is recognised for any modification that increases |
| | the total fair value of the share-based payment arrangement, or is |
| | otherwise beneficial to the employee, as measured at the date of |
| | modification. |
+------+--------------------------------------------------------------------------+
| | If an equity-settled award is cancelled, it is treated as if it had |
| | vested on the date of cancellation, and any expense not yet recognised |
| | for the award is recognised immediately. However, if a new award is |
| | substituted for the cancelled award and designated as a replacement |
| | award on the date that it is granted, the cancelled and new award are |
| | treated as if they were a modification of the original award, as |
| | described in the previous paragraph. |
+------+--------------------------------------------------------------------------+
| | The dilutive effect, if any, of outstanding options is reflected as |
| | additional share dilution in the computation of earnings per share (see |
| | Note 8). |
| | |
+------+--------------------------------------------------------------------------+
| (y) | Earnings per share |
+------+--------------------------------------------------------------------------+
| | Basic earnings per share is calculated as net profit attributable to |
| | members of the parent, adjusted to exclude any costs of servicing equity |
| | (other than dividends) and preference share dividends, divided by the |
| | weighted average number of ordinary shares, adjusted for any bonus |
| | element. |
+------+--------------------------------------------------------------------------+
| | Diluted earnings per share is calculated as net profit attributable to |
| | members of the parent, adjusted for: |
+------+--------------------------------------------------------------------------+
| | - costs of servicing equity (other than dividends) and preference share |
| | dividends; |
+------+--------------------------------------------------------------------------+
| | - the after tax effect of dividends and interest associated with |
| | dilutive potential ordinary shares that have been recognised as |
| | expenses; and |
+------+--------------------------------------------------------------------------+
| | - other non-discretionary changes in revenues or expenses during the |
| | period that would result from the dilution of potential ordinary shares; |
| | divided by the weighted average number of ordinary shares and dilutive |
| | potential ordinary shares, adjusted for any bonus element. |
+------+--------------------------------------------------------------------------+
+----+--------------+----------+---------+--------+--------+--------+--------+--------+----------+
| 2 | Turnover and segmental analysis |
+----+-------------------------------------------------------------------------------------------+
| | The Group has not commenced operationally and therefore recorded no turnover. |
| | |
+----+-------------------------------------------------------------------------------------------+
| | The analysis of the operating loss before taxation and the net assets employed by |
| | geographical segment of operations is shown below; |
+----+-------------------------------------------------------------------------------------------+
| | |
+----+-------------------------------------------------------------------------------------------+
| | By geographical area |
+----+-------------------------------------------------------------------------------------------+
| | 2008 | UK | South | DRC | Sudan | Chad | Niger | Cyprus | Total |
| | | | Africa | | | | | | |
+----+--------------+----------+---------+--------+--------+--------+--------+--------+----------+
| | | GBP | GBP | GBP | GBP | GBP | GBP | GBP | GBP |
| | | 000's | 000's | 000's | 000's | 000's | 000's | 000's | 000's |
+----+--------------+----------+---------+--------+--------+--------+--------+--------+----------+
| | Result | | | | | | | | |
+----+--------------+----------+---------+--------+--------+--------+--------+--------+----------+
| | Operating | (10,613) | (2,701) | 207 | (361) | 1 | 3 | 16 | (13,448) |
| | loss | | | | | | | | |
+----+--------------+----------+---------+--------+--------+--------+--------+--------+----------+
| | Investment | 397 | 3 | - | - | - | - | - | 400 |
| | revenue | | | | | | | | |
+----+--------------+----------+---------+--------+--------+--------+--------+--------+----------+
| | Loss | (10,216) | (2,698) | 207 | (361) | 1 | 3 | 16 | (13,048) |
| | before & | | | | | | | | |
| | after tax | | | | | | | | |
+----+--------------+----------+---------+--------+--------+--------+--------+--------+----------+
| | | | | | | | | | |
+----+--------------+----------+---------+--------+--------+--------+--------+--------+----------+
| | Other | | | | | | | | |
| | information | | | | | | | | |
+----+--------------+----------+---------+--------+--------+--------+--------+--------+----------+
| | Depreciation | - | 4,971 | 5,513 | 259 | 651 | - | - | 11,394 |
| | and | | | | | | | | |
| | impairment | | | | | | | | |
+----+--------------+----------+---------+--------+--------+--------+--------+--------+----------+
| | Capital | - | 161 | 997 | 199 | 225 | 1,455 | - | 3,037 |
| | additions | | | | | | | | |
+----+--------------+----------+---------+--------+--------+--------+--------+--------+----------+
| | | | | | | | | | |
+----+--------------+----------+---------+--------+--------+--------+--------+--------+----------+
| | Assets | | | | | | | | |
+----+--------------+----------+---------+--------+--------+--------+--------+--------+----------+
| | Segment | - | 405 | - | 199 | - | - | - | 604 |
| | assets | | | | | | | | |
+----+--------------+----------+---------+--------+--------+--------+--------+--------+----------+
| | Financial | 79 | 59 | - | - | - | - | - | 138 |
| | assets | | | | | | | | |
+----+--------------+----------+---------+--------+--------+--------+--------+--------+----------+
| | Cash | 7,304 | 18 | - | - | - | - | - | 7,322 |
+----+--------------+----------+---------+--------+--------+--------+--------+--------+----------+
| | Consolidated | 7,383 | 482 | - | 199 | - | - | - | 8,064 |
| | total assets | | | | | | | | |
+----+--------------+----------+---------+--------+--------+--------+--------+--------+----------+
| | Liabilities | | | | | | | | |
+----+--------------+----------+---------+--------+--------+--------+--------+--------+----------+
| | Segment | - | - | - | - | - | - | - | - |
| | liabilities | | | | | | | | |
+----+--------------+----------+---------+--------+--------+--------+--------+--------+----------+
| | Financial | 69 | 17 | - | 85 | 1 | - | 4 | 176 |
| | liabilities | | | | | | | | |
+----+--------------+----------+---------+--------+--------+--------+--------+--------+----------+
| | Consolidated | 69 | 17 | - | 85 | 1 | - | 4 | 176 |
| | total | | | | | | | | |
| | liabilities | | | | | | | | |
+----+--------------+----------+---------+--------+--------+--------+--------+--------+----------+
| | | | | | | | | | |
+----+--------------+----------+---------+--------+--------+--------+--------+--------+----------+
+----+--------------+---------+----+----+---------+----+----+----+----+--------+----+----+---------+
| 2 | Turnover and segmental analysis (continued) |
+----+---------------------------------------------------------------------------------------------+
| | 2007 | UK | South | DRC | Sudan | Chad | Niger | Cyprus | Total |
| | | | Africa | | | | | | |
+----+--------------+---------+---------+---------+---------+---------+--------+---------+---------+
| | | GBP | GBP | GBP | GBP | GBP | GBP | GBP | GBP |
| | | 000's | 000's | 000's | 000's | 000's | 000's | 000's | 000's |
+----+--------------+---------+---------+---------+---------+---------+--------+---------+---------+
| | Result | | | | | | | | |
+----+--------------+---------+---------+---------+---------+---------+--------+---------+---------+
| | Operating | (2,112) | (280) | (6,157) | (29) | (30) | (3) | (31) | (8,642) |
| | loss | | | | | | | | |
+----+--------------+---------+---------+---------+---------+---------+--------+---------+---------+
| | Investment | 742 | - | - | - | - | - | - | 742 |
| | revenue | | | | | | | | |
+----+--------------+---------+---------+---------+---------+---------+--------+---------+---------+
| | Loss | (1,370) | (280) | (6,157) | (29) | (30) | (3) | (31) | (7,900) |
| | before & | | | | | | | | |
| | after tax | | | | | | | | |
+----+--------------+---------+---------+---------+---------+---------+--------+---------+---------+
| | | | | | | | | | |
+----+--------------+---------+---------+---------+---------+---------+--------+---------+---------+
| | Other | | | | | | | | |
| | information | | | | | | | | |
+----+--------------+---------+---------+---------+---------+---------+--------+---------+---------+
| | Depreciation | - | 45 | 6,014 | - | - | - | - | 6,059 |
| | & Impairment | | | | | | | | |
+----+--------------+---------+---------+---------+---------+---------+--------+---------+---------+
| | Capital | - | 360 | 12,406 | 259 | 427 | 98 | - | 13,550 |
| | additions | | | | | | | | |
+----+--------------+---------+---------+---------+---------+---------+--------+---------+---------+
| | | | | | | | | | |
+----+--------------+---------+---------+---------+---------+---------+--------+---------+---------+
| | Assets | | | | | | | | |
+----+--------------+---------+---------+---------+---------+---------+--------+---------+---------+
| | Segment | - | 5,293 | 6,233 | 258 | 427 | 98 | - | 12,309 |
| | assets | | | | | | | | |
+----+--------------+---------+---------+---------+---------+---------+--------+---------+---------+
| | Financial | 66 | 39 | 19 | - | - | - | 3 | 127 |
| | assets | | | | | | | | |
+----+--------------+---------+---------+---------+---------+---------+--------+---------+---------+
| | Cash | 11,018 | 68 | 37 | - | - | - | 3 | 11,126 |
+----+--------------+---------+---------+---------+---------+---------+--------+---------+---------+
| | Consolidated | 11,084 | 5,400 | 6,289 | 258 | 427 | 98 | 6 | 23,562 |
| | total assets | | | | | | | | |
+----+--------------+---------+---------+---------+---------+---------+--------+---------+---------+
| | Liabilities | | | | | | | | |
+----+--------------+---------+---------+---------+---------+---------+--------+---------+---------+
| | Segment | | | | | | | | |
| | liabilities | | | | | | | | |
+----+--------------+---------+---------+---------+---------+---------+--------+---------+---------+
| | Financial | 109 | 119 | 6 | 1 | 1 | 1 | 6 | 243 |
| | liabilities | | | | | | | | |
+----+--------------+---------+---------+---------+---------+---------+--------+---------+---------+
| | Consolidated | 109 | 119 | 6 | 1 | 1 | 1 | 6 | 243 |
| | total | | | | | | | | |
| | liabilities | | | | | | | | |
+----+--------------+---------+---------+---------+---------+---------+--------+---------+---------+
| | | | | | | | | | |
+----+--------------+---------+---------+---------+---------+---------+--------+---------+---------+
| 3 | Operating loss |
+----+---------------------------------------------------------------------------------------------+
| | | | | 2008 | 2007 |
+----+-----------------------------+-------------------+---------+------------------+--------------+
| | Operating loss is arrived at after | | GBP 000's | GBP 000's |
| | charging: | | | |
+----+-------------------------------------------------+---------+------------------+--------------+
| | | | | | |
+----+-----------------------------+-------------------+---------+------------------+--------------+
| | Auditors' remuneration - audit | | 48 | 32 |
+----+-------------------------------------------------+---------+------------------+--------------+
| | Auditors' remuneration - non audit | | 2 | 3 |
| | services (accounting advice) | | | |
+----+-------------------------------------------------+---------+------------------+--------------+
| | Directors' emoluments - fees and salaries | | 889 | 624 |
+----+-------------------------------------------------+---------+------------------+--------------+
| | Directors' emoluments - share based | | 202 | 774 |
| | payments | | | |
+----+-------------------------------------------------+---------+------------------+--------------+
| | Depreciation | | 55 | 59 |
+----+-------------------------------------------------+---------+------------------+--------------+
| Auditors remuneration for audit services above includes GBP9,778 (2007: |
| GBP10,000) charges by MGI Gregoriou & Co Certified Public Accountants |
| (Cyprus) and GBP8,736 (2007: GBP4,000) charged by Moore Stephens MWM Inc. |
| Chartered Accountants (S.A) relating to the audit of the subsidiary |
| companies. |
| |
+----+--------------+---------+----+----+---------+----+----+----+----+--------+----+----+---------+
+---+---------------------------------------------+--------------+--------------+
| | | | |
+---+---------------------------------------------+--------------+--------------+
| 4 | Employee information | 2008 | 2007 |
+---+---------------------------------------------+--------------+--------------+
| | Staff Costs comprised: | GBP 000's | GBP 000's |
+---+---------------------------------------------+--------------+--------------+
| | Wages and salaries | 288 | 174 |
+---+---------------------------------------------+--------------+--------------+
| | | | |
+---+---------------------------------------------+--------------+--------------+
| | | Number | Number |
+---+---------------------------------------------+--------------+--------------+
| | Administration | 9 | 8 |
+---+---------------------------------------------+--------------+--------------+
| | Operations | 4 | 1 |
+---+---------------------------------------------+--------------+--------------+
| | | 13 | 9 |
+---+---------------------------------------------+--------------+--------------+
+---+---------------------------------------------+--------------+--------------+
| | | | |
+---+---------------------------------------------+--------------+--------------+
| 5 | Taxation | 2008 | 2007 |
+---+---------------------------------------------+--------------+--------------+
| | Analysis of charge in period | GBP 000's | GBP 000's |
+---+---------------------------------------------+--------------+--------------+
| | Tax on ordinary activities | - | - |
+---+---------------------------------------------+--------------+--------------+
| | | | |
+---+---------------------------------------------+--------------+--------------+
| | No taxation has been provided due to losses | | |
| | in the year. | | |
+---+---------------------------------------------+--------------+--------------+
| | | | |
+---+---------------------------------------------+--------------+--------------+
| | Factors affecting the tax charge for the period | |
+---+------------------------------------------------------------+--------------+
| | | GBP 000's | GBP 000's |
+---+---------------------------------------------+--------------+--------------+
| | Loss on ordinary activities before tax | (13,048) | (7,900) |
+---+---------------------------------------------+--------------+--------------+
| | | | |
+---+---------------------------------------------+--------------+--------------+
| | Standard rate of corporation tax in the UK | 28.5% | 30% |
+---+---------------------------------------------+--------------+--------------+
| | | | |
+---+---------------------------------------------+--------------+--------------+
| | | GBP 000's | GBP 000's |
+---+---------------------------------------------+--------------+--------------+
| | Loss on ordinary activities multiplied by | (3,719) | (2,370) |
| | the standard rate of corporation tax | | |
+---+ + + +
| | | | |
+---+---------------------------------------------+--------------+--------------+
| | Effects of: | | |
+---+---------------------------------------------+--------------+--------------+
| | Non deductible expenses | 3,033 | 1,800 |
+---+---------------------------------------------+--------------+--------------+
| | Future tax benefit not brought to account | 686 | 570 |
+---+---------------------------------------------+--------------+--------------+
| | Current tax charge for period | - | - |
+---+---------------------------------------------+--------------+--------------+
| | No deferred tax asset has been recognised because there is insufficient |
| | evidence of the timing of suitable future profits against which they can |
| | be recovered. |
+---+---------------------------------------------+--------------+--------------+
+---+--------------------------------------------------------------------------+
| 6 | Dividends |
+---+--------------------------------------------------------------------------+
| | No dividends were paid or proposed by the Directors. (2007: GBPnil) |
+---+--------------------------------------------------------------------------+
| | |
+---+--------------------------------------------------------------------------+
+----+---------------------------+------------+-------------+------------+---------+
| 7 | Directors' emoluments |
| | |
+----+-----------------------------------------------------------------------------+
| | | | | 2008 | 2007 |
+----+---------------------------+------------+-------------+------------+---------+
| | | | | GBP 000's | GBP |
| | | | | | 000's |
+----+---------------------------+------------+-------------+------------+---------+
| | Directors' remuneration | | | 1,091 | 1,398 |
+----+---------------------------+------------+-------------+------------+---------+
| | | | | | |
+----+---------------------------+------------+-------------+------------+---------+
| | 2008 | Directors | Consultancy | Shares/ | Total |
| | | Fees | Fees | Options | |
+----+---------------------------+------------+-------------+------------+---------+
| | | GBP 000's | GBP 000's | GBP 000's | GBP |
| | | | | | 000's |
+----+---------------------------+------------+-------------+------------+---------+
| | Executive Directors | | | | |
+----+---------------------------+------------+-------------+------------+---------+
| | Donald Strang (#) (A) | 14 | 176 | - | 190 |
+----+---------------------------+------------+-------------+------------+---------+
| | Gerard Holden (#) (B) | 5 | 392 | - | 397 |
+----+---------------------------+------------+-------------+------------+---------+
| | Dunbar Dales (#) (C) | 15 | 69 | 36 | 120 |
+----+---------------------------+------------+-------------+------------+---------+
| | Mark Fresson (#) | 47 | - | 2 | 49 |
+----+---------------------------+------------+-------------+------------+---------+
| | Non-Executive Directors | | | | |
+----+---------------------------+------------+-------------+------------+---------+
| | Zodwa Manase (#) | 40 | - | - | 40 |
+----+---------------------------+------------+-------------+------------+---------+
| | Clayton Dodd | 50 | - | - | 50 |
+----+---------------------------+------------+-------------+------------+---------+
| | Kiran Morzaria (#) (D) | 18 | 7 | - | 25 |
+----+---------------------------+------------+-------------+------------+---------+
| | Calvyn Gardner (#) | - | - | - | - |
+----+---------------------------+------------+-------------+------------+---------+
| | Richard Linnell (#) (E) | 18 | 38 | 164 | 220 |
+----+---------------------------+------------+-------------+------------+---------+
| | | 207 | 682 | 202 | 1091 |
+----+---------------------------+------------+-------------+------------+---------+
| | 2007 | | | | |
+----+---------------------------+------------+-------------+------------+---------+
| | Executive Directors | | | | |
+----+---------------------------+------------+-------------+------------+---------+
| | Gerard Holden | 24 | 253 | 484 | 761 |
+----+---------------------------+------------+-------------+------------+---------+
| | Donald Strang (A) | 24 | 150 | 290 | 464 |
+----+---------------------------+------------+-------------+------------+---------+
| | Robert Croll (#) | 12 | - | - | 12 |
+----+---------------------------+------------+-------------+------------+---------+
| | Alan Thom (#) | - | - | - | - |
+----+---------------------------+------------+-------------+------------+---------+
| | Non-Executive Directors | | | | |
+----+---------------------------+------------+-------------+------------+---------+
| | Zodwa Manase | 48 | - | - | 48 |
+----+---------------------------+------------+-------------+------------+---------+
| | Clayton Dodd | 50 | - | - | 50 |
+----+---------------------------+------------+-------------+------------+---------+
| | Kiran Morzaria (D) | 24 | 39 | - | 63 |
+----+---------------------------+------------+-------------+------------+---------+
| | Calvyn Gardener (#) | - | - | - | - |
+----+---------------------------+------------+-------------+------------+---------+
| | | 182 | 442 | 774 | 1,398 |
+----+---------------------------+------------+-------------+------------+---------+
| | | | | | |
+----+---------------------------+------------+-------------+------------+---------+
| | (#): These Directors were not employed for the | | |
| | whole of the financial year. | | |
+----+------------------------------------------------------+------------+---------+
| | (A): Consulting services provided by Isona Services | | |
| | Limited. | | |
+----+------------------------------------------------------+------------+---------+
| | (B): Consulting services provided by Llandundo | | |
| | Consulting was GBP200,000. | | |
+----+------------------------------------------------------+------------+---------+
| | (C): Consulting services provided by Dales Project | | |
| | Management cc. | | |
+----+------------------------------------------------------+------------+---------+
| | (D): Consultancy services provided by Kimmell | | |
| | Consulting. | | |
+----+------------------------------------------------------+------------+---------+
| | (E): Consultancy services provided by Terra Africa | | |
| | Investments Ltd. | | |
+----+------------------------------------------------------+------------+---------+
| | No pension benefits are provided for any Director. | | |
+----+------------------------------------------------------+------------+---------+
| | Dunbar Dales was paid consultancy fees of GBP10,717 by BMSA | |
| | before his appointment. | |
+----+---------------------------+------------+-------------+------------+---------+
+----+------------------------------------+-------------+--------------+-+--------------+
| 8 | Loss per share |
+----+----------------------------------------------------------------------------------+
| | The Loss for the period attributed to shareholders is GBP13.05 million. |
+----+----------------------------------------------------------------------------------+
| | This is divided by the weighted average number of Ordinary shares outstanding |
| | calculated to be 356.3 million (2007: 330.5 million) to give a basic loss per |
| | share of 3.66 pence (2007: 2.39 pence). |
+----+----------------------------------------------------------------------------------+
| | As inclusion of the potential Ordinary shares would result in a decrease in the |
| | loss per share they are considered to be anti-dilutive, as such, a diluted |
| | earnings per share is not included. |
+----+----------------------------------------------------------------------------------+
| | | | |
+----+--------------------------------------------------+--------------+----------------+
| 9 | Finance revenue | 2008 | 2007 |
| | | | |
+----+--------------------------------------------------+--------------+----------------+
| | | GBP 000's | GBP 000's |
+----+--------------------------------------------------+--------------+----------------+
| | Bank interest receivable | 400 | 742 |
+----+--------------------------------------------------+--------------+----------------+
| | |
+----+----------------------------------------------------------------------------------+
| 10 | Intangible assets |
+----+----------------------------------------------------------------------------------+
| | | | |
+----+------------------------------------+-------------+-------------------------------+
| | Group | | GBP 000's | |
+----+------------------------------------+-------------+----------------+--------------+
| | Cost | | | |
+----+------------------------------------+-------------+----------------+--------------+
| | As at 1 January 2008 | | 15,493 | |
+----+------------------------------------+-------------+----------------+--------------+
| | Additions | | 3,002 | |
+----+------------------------------------+-------------+----------------+--------------+
| | Transfers and Disposals | | (15,291) | |
+----+------------------------------------+-------------+----------------+--------------+
| | As at 31 December 2008 | | 3,204 | |
+----+------------------------------------+-------------+----------------+--------------+
| | | | | |
+----+------------------------------------+-------------+----------------+--------------+
| | Impairment and disposals | | | |
+----+------------------------------------+-------------+----------------+--------------+
| | As at 1 January 2008 | | 6,000 | |
+----+------------------------------------+-------------+----------------+--------------+
| | Impairment charge | | 9,059 | |
+----+------------------------------------+-------------+----------------+--------------+
| | Disposals | | (13,034) | |
+----+------------------------------------+-------------+----------------+--------------+
| | Foreign exchange adjustment | | 880 | |
+----+------------------------------------+-------------+----------------+--------------+
| | As at 31 December 2008 | | 2,905 | |
+----+------------------------------------+-------------+----------------+--------------+
| | | | | |
+----+------------------------------------+-------------+----------------+--------------+
| | Net Book Value | | | |
+----+------------------------------------+-------------+----------------+--------------+
| | As at 31 December 2007 | | 9,493 | |
+----+------------------------------------+-------------+----------------+--------------+
| | | | | |
+----+------------------------------------+-------------+----------------+--------------+
| | As at 31 December 2008 | | 299 | |
+----+------------------------------------+-------------+----------------+--------------+
| | | | | |
+----+------------------------------------+-------------+--------------+-+--------------+
+----+-----------------------------------------------------------------------------+
| 10 | Intangible assets (continued) |
+----+-----------------------------------------------------------------------------+
+----+------------------------------------+------+------+--------------+--------------+
| | | | 2008 | 2007 |
+----+------------------------------------+-------------+--------------+--------------+
| | The Net Book Value is analyised as | | GBP 000's | GBP 000's |
| | follows: | | | |
+----+------------------------------------+-------------+--------------+--------------+
| | Deferred exploration expenditure | | 299 | 5,086 |
+----+------------------------------------+-------------+--------------+--------------+
| | Commercial rights | | - | 4,407 |
+----+------------------------------------+-------------+--------------+--------------+
| | | | 299 | 9,493 |
+----+------------------------------------+-------------+--------------+--------------+
| | | | | |
+----+------------------------------------+-------------+--------------+--------------+
| | Impairment Review |
+----+-------------------------------------------+
| | The Directors carried out an impairment review as at 31 December 2008 (see |
| | Note 12) and have subsequently written down the value of the Commercial rights |
| | in relation to South Africa and the intangible assets relating to Southern |
| | Sudan by GBP2.9 million. Following this action, the Directors are of the |
| | opinion that the carrying value of the intangible assets are stated at a fair |
| | value but will be subject to an ongoing review. |
+----+------------------------------------+------+------+--------------+--------------+
+----+----------------------------------+------+------+------+------+----------------+
| 11 | Tangible assets |
+----+-------------------------------------------------------------------------------+
| | Group | Land | Property, | Total |
| | | | plant & | |
| | | | equipment | |
+----+----------------------------------+-------------+-------------+----------------+
| | | GBP 000's | GBP 000's | GBP 000's |
+----+----------------------------------+-------------+-------------+----------------+
| | Cost | | | |
+----+----------------------------------+-------------+-------------+----------------+
| | As at 1January 2008 | 7,511 | 364 | 7,875 |
+----+----------------------------------+-------------+-------------+----------------+
| | Additions | - | 35 | 35 |
+----+----------------------------------+-------------+-------------+----------------+
| | Disposals | - | (160) | (160) |
+----+----------------------------------+-------------+-------------+----------------+
| | As at 31 December 2008 | 7,511 | 239 | 7,750 |
+----+----------------------------------+-------------+-------------+----------------+
| | | | | |
+----+----------------------------------+-------------+-------------+----------------+
| | Depreciation and Impairment | | | |
+----+----------------------------------+-------------+-------------+----------------+
| | As at 1 January 2008 | 5,000 | 59 | 5,059 |
+----+----------------------------------+-------------+-------------+----------------+
| | Depreciation charge for the year | | 55 | 55 |
+----+----------------------------------+-------------+-------------+----------------+
| | Impairment charge for the year | 2,280 | - | 2,280 |
+----+----------------------------------+-------------+-------------+----------------+
| | Disposals | - | (26) | (26) |
+----+----------------------------------+-------------+-------------+----------------+
| | FX adjustment | 72 | 5 | 77 |
+----+----------------------------------+-------------+-------------+----------------+
| | As at 31 December 2008 | 7,352 | 93 | 7,445 |
+----+----------------------------------+-------------+-------------+----------------+
| | | | | |
+----+----------------------------------+-------------+-------------+----------------+
| | Net Book Value | | | |
+----+----------------------------------+-------------+-------------+----------------+
| | As at 31 December 2007 | 2,511 | 305 | 2,816 |
+----+----------------------------------+-------------+-------------+----------------+
| | | | | |
+----+----------------------------------+-------------+-------------+----------------+
| | As at 31 December 2008 | 159 | 146 | 305 |
+----+----------------------------------+-------------+-------------+----------------+
| | Impairment Review | | |
+----+-----------------------------------------+-------------+-----------------------+
| | At 31 December 2008, the Directors have carried out an impairment review and |
| | have subsequently written down the value of the Land in relation to South |
| | Africa by GBP2.4 million. The Directors are of the opinion the carrying value |
| | of the Land in relation to South Africa is now stated at a fair value, which |
| | will be subject to an ongoing review as the Group's strategic partnership |
| | within South Africa develops in the future. |
+----+----------------------------------+------+------+------+------+----------------+
+----+--------------------------+--------------------+--------------+----------------+
| 12 | Impairment Reviews |
+----+-------------------------------------------------------------------------------+
| | The Board of Directors undertook an impairment review of the Group's assets |
| | as at 31 December 2008, and in view of subsequent events to the Balance Sheet |
| | date. The format of the review was to assess the carrying value of assets as |
| | at 31 December 2008 by country or sector of origin. The resultant impairment |
| | charges and rationales are as follows; |
+----+-------------------------------------------------------------------------------+
| | | | | |
+----+--------------------------+--------------------+--------------+----------------+
| | South Africa | Net costs | Impairment | Net costs |
| | | capitalised to 31 | charge | carried |
| | | December 2008 | | forward |
| | | before impairment | | |
| | | charge | | |
+----+--------------------------+--------------------+--------------+----------------+
| | | GBP 000's | GBP 000's | GBP 000's |
+----+--------------------------+--------------------+--------------+----------------+
| | Intangible assets | 2,740 | (2,640) | 100 |
+----+--------------------------+--------------------+--------------+----------------+
| | Tangible assets (land) | 2,439 | (2,280) | 159 |
+----+--------------------------+--------------------+--------------+----------------+
| | Total costs | 5,179 | (4,920) | 259 |
+----+--------------------------+--------------------+--------------+----------------+
| | | | | |
+----+--------------------------+--------------------+--------------+----------------+
| | Due to poorer than expected results and the limited number of licenses |
| | awarded to the Company to date, the value of the South African exploration |
| | assets and land has been written down by a further GBP4.92 million. |
| | |
+----+-------------------------------------------------------------------------------+
| | | | | |
+----+--------------------------+--------------------+--------------+----------------+
| | Southern Sudan | Net costs | Impairment | Net costs |
| | | capitalised to 31 | charge | carried |
| | | December 2008 | | forward |
| | | before impairment | | |
| | | charge | | |
+----+--------------------------+--------------------+--------------+----------------+
| | | GBP 000's | GBP 000's | GBP 000's |
+----+--------------------------+--------------------+--------------+----------------+
| | Intangible assets | 458 | (259) | 199 |
+----+--------------------------+--------------------+--------------+----------------+
| | Total costs | 458 | (259) | 199 |
+----+--------------------------+--------------------+--------------+----------------+
| | | | | |
+----+--------------------------+--------------------+--------------+----------------+
| | The value of the Southern Sudan exploration assets has been impaired in line |
| | with the capitalisation criteria under IFRS6 and IAS38 by GBP0.25 million |
| | |
+----+-------------------------------------------------------------------------------+
| | | | | |
+----+--------------------------+--------------------+--------------+----------------+
| | Democratic Republic of | Net costs | Impairment | Net costs |
| | Congo | capitalised to 31 | charge | carried |
| | Intangible Assets | December 2008 | | forward |
| | | before impairment | | |
| | | charge | | |
+----+--------------------------+--------------------+--------------+----------------+
| | | GBP 000's | GBP 000's | GBP 000's |
+----+--------------------------+--------------------+--------------+----------------+
| | Deferred exploration | 1,975 | (1,975) | - |
| | expenses | | | |
+----+--------------------------+--------------------+--------------+----------------+
| | Commercial Rights | 3,534 | (3,534) | - |
+----+--------------------------+--------------------+--------------+----------------+
| | Total costs | 5,509 | (5,509) | - |
+----+--------------------------+--------------------+--------------+----------------+
| | | | | |
+----+--------------------------+--------------------+--------------+----------------+
| | As detailed on our press release dated 2 September 2008, the Company |
| | announced it would cease all operations in the DRC. Consequently the value of |
| | the Commercial Rights and deferred exploration expenditure in relation to the |
| | DRC has been written down to Nil. |
| | |
+----+--------------------------+--------------------+--------------+----------------+
+----+--------------------------+--------------------+--------------+----------------+
| 12 | Impairment Reviews (continued) |
+----+-------------------------------------------------------------------------------+
| | | | | |
+----+--------------------------+--------------------+--------------+----------------+
| | Chad | Net costs | Impairment | Net costs |
| | | capitalised to 31 | charge | carried |
| | | December 2008 | | forward |
| | | before impairment | | |
| | | charge | | |
+----+--------------------------+--------------------+--------------+----------------+
| | | GBP 000's | GBP 000's | GBP 000's |
+----+--------------------------+--------------------+--------------+----------------+
| | Intangible assets | 651 | (651) | - |
+----+--------------------------+--------------------+--------------+----------------+
| | Total costs | 651 | (651) | - |
+----+--------------------------+--------------------+--------------+----------------+
| | | | | |
+----+--------------------------+--------------------+--------------+----------------+
| | |
+----+-------------------------------------------------------------------------------+
| | As also announced on 2 September 2008, the Company ceased all operations in |
| | Chad and wrote down the value of the exploration expenditure to Nil. |
| | |
+----+-------------------------------------------------------------------------------+
| | | Net costs | Impairment | Net costs |
| | | capitalised to 31 | charge | carried |
| | | December 2008 | | forward |
| | | before impairment | | |
| | | charge | | |
+----+--------------------------+--------------------+--------------+----------------+
| | | GBP 000's | GBP 000's | GBP 000's |
+----+--------------------------+--------------------+--------------+----------------+
| | Group Totals | 11,797 | (11,339) | 458 |
+----+--------------------------+--------------------+--------------+----------------+
| | | | | |
+----+--------------------------+--------------------+--------------+----------------+
| | Intangible assets (Note | 9,358 | (9,059) | 299 |
| | 10) | | | |
+----+--------------------------+--------------------+--------------+----------------+
| | Tangible assets (Note | 2,439 | (2,280) | 159 |
| | 11) | | | |
+----+--------------------------+--------------------+--------------+----------------+
| | |
+----+-------------------------------------------------------------------------------+
| | A large part of the impairment charge this year and last year relates to |
| | intangible assets for which Brinkley issued its own shares in consideration, |
| | as opposed to paying for those intangible assets with cash. Over the last |
| | two reported years, a total of GBP9.9 million has been written off through |
| | the Income Statement and a further GBP7million has been written off to the |
| | merger reserve both being in respect of such non cash consideration. |
| | The Directors are of the opinion that, after these impairments and write |
| | downs, the carrying value of the tangible and intangible assets in relation |
| | to the Company's projects are stated at a fair value. The carrying values |
| | will be subject to an ongoing review as the Group's strategic partnership |
| | within each country develops in the future. |
| | |
+----+--------------------------+--------------------+--------------+----------------+
+----+-----------------------------------+---+-----------------------+---------------+
| | |
+----+-------------------------------------------------------------------------------+
| 13 | Investment in subsidiaries | |
+----+---------------------------------------------------------------+---------------+
| | | | |
+----+---------------------------------------+-----------------------+---------------+
| | Shares in Group undertakings | |
+----+---------------------------------------------------------------+---------------+
| | Company | | GBP 000's |
+----+-----------------------------------+---------------------------+---------------+
| | Cost | | |
+----+-----------------------------------+---------------------------+---------------+
| | At 1 January 2008 and 31 December | | 3 |
| | 2008 | | |
+----+-----------------------------------+---------------------------+---------------+
| | | | |
+----+-----------------------------------+---+-----------------------+---------------+
+----+-----------------------------------+--------------+------------+----------------+
| | The parent company of the Group holds more than 20% of the share capital |
| | of the following companies: |
+----+--------------------------------------------------------------------------------+
| | Company | Country of |Proportion | Nature of |
| | |Registration | held | business |
+----+-----------------------------------+--------------+------------+----------------+
| | Direct | | | |
+----+-----------------------------------+--------------+------------+----------------+
| | Brinkley Mining Ltd | Cyprus | 100% | Holding |
| | | | | Company |
+----+-----------------------------------+--------------+------------+----------------+
| | Brinkley Mining Holdings Ltd | Cyprus | 100% | Holding |
| | | | | Company |
+----+-----------------------------------+--------------+------------+----------------+
| | | | | |
+----+-----------------------------------+--------------+------------+----------------+
| | Indirect | | | |
+----+-----------------------------------+--------------+------------+----------------+
| | Via Brinkley Mining Ltd | | | |
+----+-----------------------------------+--------------+------------+----------------+
| | Western Uranium (Pty) Ltd | South | 49% | Mineral |
| | | Africa | | Exploration |
+----+-----------------------------------+--------------+------------+----------------+
| | | | | |
+----+-----------------------------------+--------------+------------+----------------+
| | Via Brinkley Mining Holdings Ltd | | | |
+----+-----------------------------------+--------------+------------+----------------+
| | Brinkley Mining Project 4 Ltd | Cyprus | 100% | Mineral |
| | | | | Exploration |
+----+-----------------------------------+--------------+------------+----------------+
| | Brinkley Mining Project 6 Ltd (*) | Cyprus | 100% | Mineral |
| | | | | Exploration |
+----+-----------------------------------+--------------+------------+----------------+
| | Jerivion Trading Ltd | Cyprus | 100% | Shell Company |
+----+-----------------------------------+--------------+------------+----------------+
| | Brinkley Mining South Africa | South | 100% | Shell Company |
| | (Pty) Ltd | Africa | | |
+----+-----------------------------------+--------------+------------+----------------+
| | Brinkley Mining South Africa | South | 100% | Land Holding |
| | Project 1 (Pty) Ltd | Africa | | |
+----+-----------------------------------+--------------+------------+----------------+
| | | | | |
+----+-----------------------------------+--------------+------------+----------------+
| | Via Brinkley Mining Project 4 Ltd | | | |
+----+-----------------------------------+--------------+------------+----------------+
| | Brinkley Mining Project 4 | Southern | 100% | Mineral |
| | Southern Sudan Ltd | Sudan | | Exploration |
+----+-----------------------------------+--------------+------------+----------------+
| | | | | |
+----+-----------------------------------+--------------+------------+----------------+
| | Via Brinkley Mining Project 6 Ltd | | | |
+----+-----------------------------------+--------------+------------+----------------+
| | Brinkley Mining Tchad Ltd (*) | BVI | 100% |Shell Company |
+----+-----------------------------------+--------------+------------+----------------+
| | (*) Put into liquidation after | | | |
| | year end. | | | |
+----+-----------------------------------+--------------+------------+----------------+
+-----+------------------------------+------------+------------+----------+---------+
| | | |
+-----+------------------------------+----------------------------------------------+
| 14 | Trade and other receivables | 2008 | 2007 |
+-----+------------------------------+-------------------------+--------------------+
| | | Group | Company | Group | Company |
| | | GBP 000's | GBP 000's | GBP | GBP |
| | | | | 000's | 000's |
+-----+------------------------------+------------+------------+----------+---------+
| | Current trade and other | | | | |
| | receivables | | | | |
+-----+------------------------------+------------+------------+----------+---------+
| | VAT receivable | 36 | 9 | 31 | 6 |
+-----+------------------------------+------------+------------+----------+---------+
| | Prepayments | 33 | 33 | 96 | 60 |
+-----+------------------------------+------------+------------+----------+---------+
| | Other debtors | 69 | 37 | - | - |
+-----+------------------------------+------------+------------+----------+---------+
| | Total | 138 | 79 | 127 | 66 |
+-----+------------------------------+------------+------------+----------+---------+
| | Non Current trade and other | | | | |
| | receivables | | | | |
| | | | | | |
+-----+------------------------------+------------+------------+----------+---------+
| | Loans due from subsidiaries | - | 4,272 | - | 23,987 |
+-----+------------------------------+------------+------------+----------+---------+
| | The loans from subsidiaries are interest free and have no fixed repayment |
| | date. |
+-----+------------------------------+------------+------------+----------+---------+
+-----+------------------------------+------------+------------+----------+---------+
| 15 | Trade and other payables | 2008 | 2007 |
+-----+------------------------------+-------------------------+--------------------+
| | | Group | Company | Group | Company |
+-----+------------------------------+------------+------------+----------+---------+
| | | GBP 000's | GBP 000's | GBP | GBP |
| | | | | 000's | 000's |
+-----+------------------------------+------------+------------+----------+---------+
| | Current trade and other | | | | |
| | payables: | | | | |
+-----+------------------------------+------------+------------+----------+---------+
| | Accruals | 83 | 69 | 243 | 109 |
+-----+------------------------------+------------+------------+----------+---------+
| | Trade payables | 93 | - | - | - |
+-----+------------------------------+------------+------------+----------+---------+
| | Totals | 176 | 69 | 243 | 109 |
+-----+------------------------------+------------+------------+----------+---------+
+-------------------------------+-------------------------------+-------------------------------+------------+-------------+------------+
| | | | | | |
+-------------------------------+-------------------------------+-------------------------------+------------+-------------+------------+
| 16 | Share capital | | | | |
+ +-------------------------------+-------------------------------+------------+-------------+------------+
| | | | | | |
+-------------------------------+-------------------------------+-------------------------------+------------+-------------+------------+
| | Authorised | | | GBP 000's | |
+-------------------------------+-------------------------------+-------------------------------+------------+-------------+------------+
| | 1,000,000,000 Ordinary shares of 0.15p each | 1,500 | |
+-------------------------------+----------------------------------------------------------------------------+-------------+------------+
| | | | |
+-------------------------------+----------------------------------------------------------------------------+-------------+------------+
| | Called up, allotted, issued and fully paid | Number of | Nominal |
| | | shares | value |
| | | | GBP 000's |
+-------------------------------+----------------------------------------------------------------------------+-------------+------------+
| | As at 1 January 2008 and 31 December 2008 | 356,336,248 | 535 |
+-------------------------------+----------------------------------------------------------------------------+-------------+------------+
| | No shares have been issued in the current year. | | |
+-------------------------------+-------------------------------+-------------------------------+------------+-------------+------------+
+-----+--------------------------------------------------------------------------+
| 16 | Share capital (continued) |
+-----+--------------------------------------------------------------------------+
Total share options in issue
During the year, 14,800,000 options were issued (14,000,000 in prior year).
As at 31 December 2008 the options in issue were;
+----------------+------------------------+---------------------+-----------------+
| Exercise Price | Expiry Date | Options in Issue | Options in |
| | | 31 December 2008 | Issue |
| | | | 31 December |
| | | | 2007 |
+----------------+------------------------+---------------------+-----------------+
| 50p | 5 June 2011 | 20,000,000 | 20,000,000 |
+----------------+------------------------+---------------------+-----------------+
| 50p | 27 June 2011 | 6,000,000 | 6,000,000 |
+----------------+------------------------+---------------------+-----------------+
| 50p | 13 September 2011 | 4,000,000 | 4,000,000 |
+----------------+------------------------+---------------------+-----------------+
| 25p | 26 January 2012 | 1,000,000 | 3,000,000 |
+----------------+------------------------+---------------------+-----------------+
| 25p | 5 April 2012 | 8,100,000 | 8,950,000 |
+----------------+------------------------+---------------------+-----------------+
| 13p | 3 April 2013 | 2,500,000 | - |
+----------------+------------------------+---------------------+-----------------+
| 13p | 20 May 2013 | 500,000 | - |
+----------------+------------------------+---------------------+-----------------+
| 13p | 5 August 2013 | 500,000 | - |
+----------------+------------------------+---------------------+-----------------+
| 13p | 16 July 2013 | 200,000 | - |
+----------------+------------------------+---------------------+-----------------+
| 10p | 3 April 2013 | 2,500,000 | - |
+----------------+------------------------+---------------------+-----------------+
| 10p | 20 May 2013 | 500,000 | - |
+----------------+------------------------+---------------------+-----------------+
| 10p | 5 August 2013 | 500,000 | - |
+----------------+------------------------+---------------------+-----------------+
| 10p | 16 July 2013 | 200,000 | - |
+----------------+------------------------+---------------------+-----------------+
| 7p | 3 April 2013 | 2,500,000 | - |
+----------------+------------------------+---------------------+-----------------+
| 7p | 20 May 2013 | 500,000 | - |
+----------------+------------------------+---------------------+-----------------+
| 7p | 5 August 2013 | 500,000 | - |
+----------------+------------------------+---------------------+-----------------+
| 7p | 16 July 2013 | 200,000 | - |
+----------------+------------------------+---------------------+-----------------+
| 5p | 3 April 2013 | 2,500,000 | - |
+----------------+------------------------+---------------------+-----------------+
| 5p | 20 May 2013 | 500,000 | - |
+----------------+------------------------+---------------------+-----------------+
| 5p | 5 August 2013 | 500,000 | - |
+----------------+------------------------+---------------------+-----------------+
| 5p | 16 July 2013 | 200,000 | - |
+----------------+------------------------+---------------------+-----------------+
| | | 53,900,000 | 41,950,000 |
+----------------+------------------------+---------------------+-----------------+
No options were cancelled during the year (2007: 2,050,000). No options were
exercised during the year and 2,850,000 options lapsed.
Total warrants in issue
No warrants were issued during the year (2007: nil). The outstanding number of
warrants at the end of the period was 1,523,756 (2007: 1,523,756). The exercise
price is 0.50p and the expiry date is 5 June 2011.
No warrants lapsed, were cancelled or exercised during the year.
+----+--------------+-----+-----+-----+------------+-----+-----+-----+-----+-----+-----+-----+-----+--+
| 17 | Share based payments |
+----+------------------------------------------------------------------------------------------------+
| | | | | | |
+----+--------------------+------------------------------------+-----------------+-----------------+--+
| | Share options | | | | |
+----+--------------------+------------------------------------+-----------------+-----------------+--+
| | During the year, the Company issued share based options to Directors and employees. Options |
| | are granted under the plan for no consideration. Options are granted for a five year period. |
| | There are no vesting conditions associated with the Directors' options. Employees' options |
| | vest after 1 year of continuous employment. Options granted under the plan carry no dividend |
| | or voting rights. |
| | |
+----+------------------------------------------------------------------------------------------------+
| | Under IFRS 2 'Share Based Payments', the Company determines the fair value of options issued |
| | to Directors and Employees as remuneration and recognises the amount as an expense in the |
| | income statement with a corresponding increase in equity. |
+----+------------------------------------------------------------------------------------------------+
| | |
+----+------------------------------------------------------------------------------------------------+
| | Name | Date Granted/ | Number | Exercise Price | Expiry Date | Fair Value |
| | | Vested | | (pence) | | at Grant |
| | | | | | |Date (pence) |
+----+--------------+-----------------+------------+-----------------+-----------------+--------------+
| | Richard | 3 April 2008 | 2,500,000 | 13 | 3 April 2013 | 0.0118 |
| | Linnell | | | | | |
+----+--------------+-----------------+------------+-----------------+-----------------+--------------+
| | Richard | 3 April 2008 | 2,500,000 | 10 | 3 April 2013 | 0.0143 |
| | Linnell | | | | | |
+----+--------------+-----------------+------------+-----------------+-----------------+--------------+
| | Richard | 3 April 2008 | 2,500,000 | 7 | 3 April 2013 | 0.0180 |
| | Linnell | | | | | |
+----+--------------+-----------------+------------+-----------------+-----------------+--------------+
| | Richard | 3 April 2008 | 2,500,000 | 5 | 3 April 2013 | 0.0216 |
| | Linnell | | | | | |
+----+--------------+-----------------+------------+-----------------+-----------------+--------------+
| | Dunbar Dales | 20 May 2008 | 500,000 | 13 | 20 May 2013 | 0.0131 |
+----+--------------+-----------------+------------+-----------------+-----------------+--------------+
| | Dunbar Dales | 20 May 2008 | 500,000 | 10 | 20 May 2013 | 0.0158 |
+----+--------------+-----------------+------------+-----------------+-----------------+--------------+
| | Dunbar Dales | 20 May 2008 | 500,000 | 7 | 20 May 2013 | 0.0197 |
+----+--------------+-----------------+------------+-----------------+-----------------+--------------+
| | Dunbar Dales | 20 May 2008 | 500,000 | 5 | 20 May 2013 | 0.0235 |
+----+--------------+-----------------+------------+-----------------+-----------------+--------------+
| | Mark Fresson | 5 August 2008 | 500,000 | 13 | 5 August 2013 | 0.0002 |
+----+--------------+-----------------+------------+-----------------+-----------------+--------------+
| | Mark Fresson | 5 August 2008 | 500,000 | 10 | 5 August 2013 | 0.0005 |
+----+--------------+-----------------+------------+-----------------+-----------------+--------------+
| | Mark Fresson | 5 August 2008 | 500,000 | 7 | 5 August 2013 | 0.0001 |
+----+--------------+-----------------+------------+-----------------+-----------------+--------------+
| | Mark Fresson | 5 August 2008 | 500,000 | 5 | 5 August 2013 | 0.0020 |
+----+--------------+-----------------+------------+-----------------+-----------------+--------------+
| | Employees | 16 July 2008 | 200,000 | 13 | 16 Jul 2013 | 0.0010 |
+----+--------------+-----------------+------------+-----------------+-----------------+--------------+
| | Employees | 16 July 2008 | 200,000 | 10 | 16 Jul 2013 | 0.0017 |
+----+--------------+-----------------+------------+-----------------+-----------------+--------------+
| | Employees | 16 July 2008 | 200,000 | 7 | 16 Jul 2013 | 0.0034 |
+----+--------------+-----------------+------------+-----------------+-----------------+--------------+
| | Employees | 16 July 2008 | 200,000 | 5 | 16 Jul 2013 | 0.0057 |
+----+--------------+-----------------+------------+-----------------+-----------------+--------------+
| | Totals | | 14,800,000 | | | |
+----+--------------+-----------------+------------+-----------------+-----------------+--------------+
| | The fair value of the options vested during the period was GBP0.204 million (2007: GBP1.194 |
| | million). The assessed fair value at grant date is determined using the Black-Scholes Model |
| | that takes into account the exercise price, the term of the option, the share price at grant |
| | date, the expected price volatility of the underlying share, the expected dividend yield and |
| | the risk-free interest rate for the term of the option. |
+----+------------------------------------------------------------------------------------------------+
| | The following table lists the inputs to the model used for the year ended 31 | |
| | December 2008: | |
+----+---------------------------------------------------------------------------------------+--------+
| | Dividend Yield (%) | Nil | | | |
+----+--------------------------+------------------------+-----------------+-----------------+--------+
| | Expected Volatility (%) | 38 | | | |
+----+--------------------------+------------------------+-----------------+-----------------+--------+
| | Risk-free interest rate | 1 | | | |
| | (%) | | | | |
+----+--------------------------+------------------------+-----------------+-----------------+--------+
| | Share price at grant | 0.02 | | | |
| | date (GBP) | | | | |
+----+--------------------------+------------------------+-----------------+-----------------+--------+
| | The expected volatility reflects the assumption that the historical volatility is indicative |
| | of future trends, which may not necessarily be the actual outcome. |
+----+--------------+-----+-----+-----+------------+-----+-----+-----+-----+-----+-----+-----+-----+--+
+----+------------------------------+------------+------------+----------+---------+
| 18 | Analysis of changes in net | |
| | funds | |
+----+------------------------------+----------------------------------------------+
| | | 2008 | 2007 |
+----+------------------------------+-------------------------+--------------------+
| | | Group | Company | Group | Company |
| | | GBP 000's | GBP 000's | GBP | GBP |
| | | | | 000's | 000's |
+----+------------------------------+------------+------------+----------+---------+
| | Balance at beginning of | 11,126 | 11,017 | 16,615 | 16,608 |
| | period | | | | |
+----+------------------------------+------------+------------+----------+---------+
| | Change during the period | (3,804) | (3,713) | (5,489) | (5,591) |
+----+------------------------------+------------+------------+----------+---------+
| | Balance at the end of the | 7,322 | 7,304 | 11,126 | 11,017 |
| | period | | | | |
+----+------------------------------+------------+------------+----------+---------+
+----+----------------------------------------+--------+--------+--------+------------+
| 19 | Financial instruments | | |
+----+-------------------------------------------------+-----------------+------------+
| | The Group uses financial instruments comprising cash, liquid resources and |
| | debtors/creditors that arise from its operations. The Group holds cash as a |
| | liquid resource to fund the obligations of the Group. The Group's cash |
| | balances are held in Sterling, US Dollars, and in South African Rands. The |
| | Group's strategy for managing cash is to maximise interest income whilst |
| | ensuring its availability to match the profile of the Group's expenditure. |
| | This is achieved by a regular monitoring of interest rates and a monthly |
| | review of expenditure forecasts. |
| | The Company has a policy of not hedging and therefore takes market rates in |
| | respect of foreign exchange risk, however it does review its currency |
| | exposures on an ad hoc basis. Currency exposures relating to monetary assets |
| | held by foreign operations are included within the foreign exchange reserve in |
| | the Group Balance Sheet. |
| | The Group considers the credit ratings of banks in which it holds funds in |
| | order to reduce exposure to credit risk. |
| | To date the Group has relied upon equity funding to finance operations. The |
| | Directors are confident that adequate cash resources exist to finance |
| | operations to commercial exploitation but controls over expenditure are |
| | carefully managed. |
+----+--------------------------------------------------------------------------------+
| | The net fair value of financial assets and liabilities approximates the |
| | carrying values disclosed in the financial statements. The currency profile of |
| | the financial assets is as follows: |
+----+--------------------------------------------------------------------------------+
| | Cash and short term deposits | 2008 | 2007 |
+----+----------------------------------------+-----------------+---------------------+
| | | GBP 000's | GBP 000's |
| | | | |
+----+----------------------------------------+-----------------+---------------------+
| | Sterling | 6,745 | 11,011 |
+----+----------------------------------------+-----------------+---------------------+
| | USD | 559 | 29 |
+----+----------------------------------------+-----------------+---------------------+
| | South African Rand | 18 | 86 |
+----+----------------------------------------+-----------------+---------------------+
| | At 31 December 2008 | 7,322 | 11,126 |
+----+----------------------------------------+-----------------+---------------------+
| | | | |
+----+----------------------------------------+-----------------+---------------------+
| | The financial assets comprise cash balances in interest earning bank accounts |
| | at call and a deposit at a 48 hours access account with the RBS managed Global |
| | Treasury Funds. |
+----+----------------------------------------+--------+--------+--------+------------+
+----+---+-----------------------------------------------------+--------------------+
| 20 | Material non-cash transactions |
+----+------------------------------------------------------------------------------+
| | There were no material non-cash transactions for the period. |
+----+------------------------------------------------------------------------------+
| | |
+----+------------------------------------------------------------------------------+
| 21 | Commitments |
+----+------------------------------------------------------------------------------+
| | As at 31 December 2008, the Company had entered into the following material |
| | commitments: |
+----+------------------------------------------------------------------------------+
| | |
+----+------------------------------------------------------------------------------+
| | Exploration commitments |
| | Ongoing exploration expenditure is required to maintain title to the Group's |
| | mineral exploration permits. No provision has been made in the financial |
| | statements for these amounts as the expenditure is expected to be fulfilled |
| | in the normal course of the operations of the Group. |
+----+------------------------------------------------------------------------------+
| | |
+----+------------------------------------------------------------------------------+
| 22 | Business combinations |
| | Disposal of Brinkley Mining Project 7 Ltd ("BMP7") |
| | |
+----+------------------------------------------------------------------------------+
| | On 23 December 2008 the Group disposed of a subsidiary Brinkley Mining |
| | Project 7 Limited for US$ 500,000. The control of the business passed on the |
| | same date. |
+----+------------------------------------------------------------------------------+
| | | Net assets |
+--------+-----------------------------------------------------+--------------------+
| | | 23 December 2008 |
+--------+-----------------------------------------------------+--------------------+
| | | GBP 000's |
| | | |
+--------+-----------------------------------------------------+--------------------+
| | Non-current Assets | |
+--------+-----------------------------------------------------+--------------------+
| | Investment in subsidiary | 899 |
+--------+-----------------------------------------------------+--------------------+
| | Loan to subsidiary | 619 |
+--------+-----------------------------------------------------+--------------------+
| | | 1,518 |
+--------+-----------------------------------------------------+--------------------+
| | | |
+--------+-----------------------------------------------------+--------------------+
| | Other creditors | (1,523) |
+--------+-----------------------------------------------------+--------------------+
| | | (1,523) |
+--------+-----------------------------------------------------+--------------------+
| | | |
+--------+-----------------------------------------------------+--------------------+
| | Net assets | (5) |
+--------+-----------------------------------------------------+--------------------+
| | Gain on disposal | 339 |
+--------+-----------------------------------------------------+--------------------+
| | Total consideration | 334 |
+--------+-----------------------------------------------------+--------------------+
| | | |
+--------+-----------------------------------------------------+--------------------+
| | Consideration satisfied by: | |
+--------+-----------------------------------------------------+--------------------+
| | Cash received | 334 |
+--------+-----------------------------------------------------+--------------------+
| | | |
+--------+-----------------------------------------------------+--------------------+
| | The cash inflow on disposal was as follows | |
+--------+-----------------------------------------------------+--------------------+
| | Cash and cash equivalents disposed of | - |
+--------+-----------------------------------------------------+--------------------+
| | Cash received | 334 |
+--------+-----------------------------------------------------+--------------------+
| | Net cash inflow | 334 |
+--------+-----------------------------------------------------+--------------------+
| | | |
+--------+-----------------------------------------------------+--------------------+
| | The analysis of the net loss arising on the | GBP 000's |
| | disposal of BMP7 recognised in the income statement | |
| | is as follows; | |
+--------+-----------------------------------------------------+--------------------+
| | | |
+--------+-----------------------------------------------------+--------------------+
| | Loan to BMP7 written off | (1,523) |
+--------+-----------------------------------------------------+--------------------+
| | Consideration received | 334 |
+--------+-----------------------------------------------------+--------------------+
| | Loss on disposal recognised in the income statement | (1,189) |
+----+---+-----------------------------------------------------+--------------------+
+-----+----------------------------------------+-----------------+----+--------------+
| 23 | Related party transactions | | |
+-----+----------------------------------------+----------------------+--------------+
| | Transactions between the company and its subsidiaries, which are related |
| | parties, have been eliminated on consolidation and are not disclosed in this |
| | note. Transactions between other related parties are discussed below. |
| | During the period, the Company paid consultancy fees of GBP175,923 (2007: |
| | GBP150,000) to Isona Services Limited, a Company related to Donald Strang, |
| | Director of Brinkley Mining Plc. This amount was paid under a management |
| | services agreement dated 1 April 2007. |
| | During the period, the Company paid consultancy fees of GBP200,000 (2007: |
| | Nil) to Llandundo Consulting, a Company related to Gerard Holden, who acted |
| | as a Director of Brinkley Mining Plc during the period. |
| | During the period, the Company paid consultancy fees of GBP6,500 (2007: |
| | GBP39,000) to Kimmell Consulting, a Company related to Kiran Morzaria, who |
| | acted as a Director of Brinkley Mining Plc during the period. |
| | During the period, the Company paid consultancy fees of GBP38,250 (2007: |
| | Nil) to Terra Africa Investments, a Company related to Richard Linnell, a |
| | Director of Brinkley Mining Plc. |
| | During the period, the Company paid consultancy fees of GBP68,951 (2007: |
| | Nil) to Dales Project Management, a Company related to Dunbar Dales, a |
| | Director of Brinkley Mining Plc. |
| | As approved by Shareholders in December 2008 the Company sold its 100% |
| | subsidiary Brinkley Mining Project 7 Limited, the Company's wholly owned |
| | Cyprus subsidiary, to Slyder Investments Limited for a cash consideration of |
| | US$500,000. Slyder is a wholly owned subsidiary of African Global Capital I, |
| | LP, which has an interest in Brinkley's ordinary shares. Slyder is a related |
| | party for the purposes of Rule 13 of the AIM rules. |
| | In June 2008, Brinkley Mining Project 5 Limited, a dormant company, changed |
| | its name to Leni Investments Trinidad Limited and was sold to Leni Gas and |
| | Oil Holdings Limited, a Company related to Donald Strang, a director during |
| | the period. There was no consideration paid for this transfer. |
| | |
+-----+------------------------------------------------------------------------------+
| | Remuneration of Key Management Personnel |
| | The remuneration of the Directors and other key management personnel of the |
| | Group is set out below in aggregate for each of the categories specified in |
| | IAS24 Related party Disclosures. |
| | |
+-----+------------------------------------------------------------------------------+
| | | 2008 | 2007 |
+-----+----------------------------------------+-----------------+-------------------+
| | | GBP 000's | GBP 000's |
| | | | |
+-----+----------------------------------------+-----------------+-------------------+
| | Short-term employee benefits | 1,025 | 676 |
+-----+----------------------------------------+-----------------+-------------------+
| | Share-based payments | 204 | 817 |
+-----+----------------------------------------+-----------------+-------------------+
| | | 1,229 | 1,493 |
+-----+----------------------------------------+-----------------+-------------------+
| | | | |
+-----+----------------------------------------+-----------------+----+--------------+
+-----+-----------------------------------------+--------------------+-------------+
| 24 | Post balance sheet events | | |
+-----+-----------------------------------------+--------------------+-------------+
| | Brinkley Mining Tchad was put into voluntary liquidation on 19 January |
| | 2009 and Brinkley Mining Project 6 Limited was put into voluntary |
| | liquidation on 22 April 2009. |
+-----+----------------------------------------------------------------------------+
| | |
+-----+-----------------------------------------+--------------------+-------------+
+-----+-----------------------------------------+--------------------+-------------+
| 25 | Profit and loss account of the parent | | |
| | company | | |
+-----+-----------------------------------------+--------------------+-------------+
| | As permitted by section 230 of the Companies Act 1985, the profit and loss |
| | account of the parent company has not been separately presented in these |
| | accounts. The parent company loss for the year was GBP16.22 million (2007: |
| | GBP1.37million). |
+-----+-----------------------------------------+--------------------+-------------+
+-----+-----------------------------------------+--------------------+-------------+
| 26 | Other | | |
+-----+-----------------------------------------+--------------------+-------------+
| | The financial information in this announcement has been derived from the |
| | Company's statutory accounts for the year ended 31 December 2008, which |
| | were approved by the Directors on 29 April 2009 and on which the auditors |
| | have given an unqualified opinion. The financial information set out in |
| | this announcement does not constitute statutory accounts within the |
| | meaning of section 240 of the Companies Act 1985. Statutory accounts for |
| | the year ended 31 December 2008 will be delivered to the Registrar of |
| | Companies in accordance with section 242 of the Companies Act 1985. The |
| | financial information for the year ended 31 December 2007 is derived from |
| | the Company's statutory accounts, which have been delivered to the |
| | Registrar of Companies and on which the auditors gave an unqualified |
| | opinion. |
+-----+-----------------------------------------+--------------------+-------------+
ENDS
This information is provided by RNS
The company news service from the London Stock Exchange
END
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