TIDMPDF
RNS Number : 0745R
Pangea DiamondFields PLC
23 April 2009
?
Pangea DiamondFields plc
('Pangea', 'PDF' or the 'Company')
Final Results for the Year ended 31 December 2008
Pangea DiamondFields plc (AIM: PDF), the diamond producer and exploration
company announces its audited results for the year ended 31 December 2008.
The Company's portfolio to date consists of eight projects, each with multiple
resource targets, located in the Central African Republic, Democratic Republic
of the Congo, South Africa and Angola.
HIGHLIGHTS
- Excellent progress made throughout the year on the
portfolio of eight projects:
- One project in commercial development
- Two projects pilot mining
- Two projects bulk sampled during 2008
- Balance of projects at differing stages of exploration
- Cassanguidi project (Angola):
- Increased effective shareholding in project to 58.5 %
- Decision
made to expand and 60% of plant and equipment on site at year end to construct
and
commission commercial scale operation during H1 2009
- Bakerville project (South Africa):
- Excellent bulk sampling results led to commencement of pilot mining
- Resources extended significantly
- First sale yielded US$1,448 per carat mid 2008
-Longatshimo River project (DRC):
- Bulk sampling plant constructed and commissioned
- 2,600 carats of diamonds recovered from bulk sampling operations during
2008
- 1,230 carats exported to Antwerp for future sale by tender during 2008
- Successful capital raising of US$15 million in February 2008
- Continued shareholder support demonstrated with additional US$12 million
raised in open offer to
existing shareholders in December 2008
- Strong and experienced management team adapting to changing market
conditions through adoption
of a revised strategy to focus on
near-cash generative projects whilst reducing costs wherever possible
on overheads and exploration costs on other projects
Commenting on the Results, CEO, Brett Thompson said, "Despite the decline in
global markets later in the year, I am very pleased with the progress made on
exploring and developing our projects during 2008. We have maintained our
emphasis on spending funds "in the ground" and as a consequence have made
significant advancements in the technical evaluation of our various projects. As
such, when economic conditions improve, we will have a project portfolio with
strong technical fundamentals ready for development and a firm foundation upon
which to continue building shareholder value."
Enquiries:
+------------------------+--------------------------+--------------------------+
| Pangea DiamondFields | Ambrian Partners Limited | Walbrook PR Ltd |
| plc | | |
+------------------------+--------------------------+--------------------------+
| Brett Thompson (CEO) | Richard Brown / Richard | Louise Goodeve / Leah |
| | Greenfield | Kramer |
+------------------------+--------------------------+--------------------------+
| T: + 27 11 438 4100 | T: + 44 (0) 20 7634 4700 | T: +44 (0) 20 7933 8780 |
+------------------------+--------------------------+--------------------------+
| Rehana Mahomed | | |
| (Investor relations) | | |
+------------------------+--------------------------+--------------------------+
| T: + 27 11 438 4112 | | |
| M: + 27 82 303 6677 | | |
+------------------------+--------------------------+--------------------------+
NOTES TO EDITORS
About Pangea Diamondfields PLC
Pangea DiamondFields PLC is an emerging diamond producer and exploration company
with a portfolio of eight projects each with multiple resource targets, located
in the Central African Republic, Democratic Republic of the Congo, South Africa
and Angola. The Company seeks to minimise portfolio risk by diversifying its
projects geographically.
PDF listed on AIM in October 2006 and trades under the ticker "PDF".
For more information on Pangea, please visit: www.pangeadiamondfields.com
CHAIRMAN'S REVIEW
In my review last year I stated the PDF team's 2008 focus would be ".....
delineating sufficient resources to justify the progression to commercial scale
mining and the commissioning of at least two mines by year end.". Unfortunately
the world today is a very different place to what it was when I made this
statement, however despite this I am pleased to report that at the end of 2008
PDF had one project being developed to commercial scale with another ready to be
upgraded to commercial scale and at least one more project likely to be ready
for commercialisation during 2009, market conditions permitting.
Apart from those projects which have been advanced to potential commercial
status, bulk sampling was undertaken on a further two projects and advanced
exploration on another two projects during 2008. All of this work has advanced
the knowledge and confidence in the resources at the various projects and stands
the company in good stead to make informed effective decisions when market
conditions improve.
Clearly many of the fund raising initiatives contemplated by PDF during 2008
were affected by the general state of the markets and despite all efforts made
in this regard, the company found itself in a tight cash position by Q3 2008.
After PDF borrowed bridging funds from an associated company, Pangea
Exploration, PDF shareholders again showed their support for the company by
subscribing to an open offer and raising US$12 million by year end.
Certainly I and the PDF team are under no illusions as to the need to survive
the current crisis in world markets and its knock on effect on the diamond
industry. As such the company has reacted rapidly to the changing circumstances
and adopted a strategy to conserve cash reserves and focus funding only on those
projects with the potential to be cash positive in the near term, even at
reduced diamond prices
The longer term fundamentals within the diamond industry remain robust and we
have no doubt that the companies that do survive the current crisis, will reap
the benefits when the tide turns and markets improve. PDF is taking all
available measures to try and ensure it will be one of those survivors.
During 2008 Brett Thompson took over as chief executive when Rob Still, who had
filled the role since the company's inception, stood down. Rob remains closely
involved as Deputy Chairman. Also two other members of the board, CFO Patrick
Cooke and non-executive Dewald Joubert elected to resign as directors at the end
of the year. I would like to thank the entire PDF team as well as those outgoing
directors and the rest of the board for their efforts during the year and look
forward to some light at the end of the tunnel during 2009.
Bill Nairn
Chairman
CHIEF EXECUTIVE OFFICER'S REPORT
Introduction
It has long been your Company's stated objective to select and progress the most
promising three projects in its portfolio to mine development by the end of 2009
and to grow these mines to optimum scale by modular expansion thereafter.
Despite the trying times in which we find ourselves at the end of 2008, Pangea's
focus throughout the past year has been specifically on this objective and I am
pleased to be able to report the substantial progress that has been made towards
achieving it.
Whilst the longer term fundamentals of the diamond industry remain strong, in
the short term the current global economic turmoil has had a major impact on the
demand for and price of, rough diamonds. This weak price environment has led the
company to delay or suspend the development of some of its projects until market
conditions are more favourable. A strategic decision was made late in 2008 to
focus our resources on projects which were near production and which were
sufficiently high margin to have the potential to be cash flow positive, whilst
greatly reducing or even ceasing expenditure on other projects which were
otherwise more "cash-consuming".
Pangea has taken the difficult decisions to reduce staff and costs throughout
the Group, including salary reductions and the decision by the board to waive
director's fees from October 2008.
Since listing on AIM on 17 October 2006, Pangea has made solid progress in
exploring and developing its portfolio of projects and specifically over the
past year, the focus has been on driving projects beyond exploration and towards
commercialisation.
After increasing our effective equity stake in the Cassanguidi project in
Angola, a decision was made to upgrade this project to commercial scale
production and after the opportune purchase of a suite of local equipment
Cassanguidi is progressing well towards this goal. Bulk sampling activities at
the Bakerville project in South Africa have rapidly yielded excellent results
and a substantial resource has been developed, providing the confidence to
upgrade this project to pilot mining status late in 2008.
The ongoing positive exploration results and favourable logistical and
infrastructural environment in South Africa has prompted the decision to
fast-track the Bakerville project such that it could be the second commercial
scale mining project for Pangea. Additional bulk sampling on the Harts River
project has focused interest on a large defined resource package just to the
south of Vryburg and identified a suitable mining method for the calcretised
gravels when this project is developed. Harts River has been recognized as a
high potential project and scoping studies have highlighted the significant
investment required, which has dictated that this project be put on hold until
economic conditions improve.
The convoy route which the Pangea team pioneered to establish and service our
southern DRC projects is now proving invaluable for not only the DRC projects
but also to better service the Cassanguidi project as well. After reaching camp
late in 2007, the Longatshimo bulk sampling plant was delivered, constructed and
commissioned early in 2008 and excellent sampling results from this project have
moved it up the ranks as another potential commercial scale mine when economic
conditions permit.
The Dimbi project bulk sampling and exploration work was accelerated with the
introduction of additional earthmoving equipment early in 2008 however results
to date have not yet provided the confidence to develop this project further.
Your Company prides itself on applying shareholder funds in a manner that yields
optimal shareholder value, i.e. "in the ground" on grass roots exploration.
Pangea spent US$18 million on the evaluation of our projects during 2008 and of
this, some 84% has been spent "in the ground", including 18% on capital
equipment.
Pangea's systematic application of fundamental geological techniques and
incremental resolution of the logistical challenges that Africa presents, puts
us in an excellent position to be able to rapidly and successfully identify and
develop projects. It is through this rapid assessment of future potential that
Pangea made the decision to drop the Luebo and Kasai projects in the DRC, as
these were considered to have limited potential to develop into commercial
projects.
Global markets started to soften from early in 2008 yet despite this Pangea
successfully raised approximately US$15 million to further develop its projects.
At that time, it was stated that Pangea was exploring options to raise up to a
further US$15 - 25 million to fully develop to commercial status, several of it
projects. With very positive technical results on our projects, Pangea was
optimistic about the potential to raise the necessary funding required to
continue to develop our projects. However global capital markets deteriorated
dramatically later in the year and the potential for raising funds or obtaining
credit diminished considerably. Negative market sentiment in general,
particularly in the commodities markets had a major impact on the share prices
of most natural resources companies and the diamond sector was hit particularly
hard. Pangea's share price was not spared and dropped dramatically in the final
quarter of 2008.
Against the backdrop of tight credit markets Pangea was faced with diminishing
cash reserves but managed to secure bridging finance of US$2 million from
related company Pangea Exploration. Given the consistent achievement of its
stated targets and the potential of its project portfolio, the Pangea management
team continue to believe that the true value of the company has yet to be
realized and is certainly not reflected in our current share price.
As a consequence, Pangea approached existing shareholders for funds in an open
offer late in the year and our efforts were rewarded by shareholders who
subscribed for an additional 1.6 billion shares to raise approximately US$12
million, providing valuable funding with which to progress towards our stated
goals.
Strategic Overview
Country Spread:
Given the potential risks involved with mineral exploration in general, and with
exploration in Africa and alluvial diamond exploration in particular, Pangea's
strategy continues to be to target projects in a number of highly prospective
countries to diversify the political and geological risk of its portfolio.
While Pangea still believes that such a strategy is the correct approach to
mitigating risk in the business we are in and on a continent as diverse as
Africa, we accept that the world is a very different place to what it was a year
or so ago and as such further economic risk aversion is required.
Risk Aversion:
In a perfect world, Pangea would have at least three projects either being
developed or ready to be developed into commercial scale projects during
2009, making Pangea self sustaining by the end of the year. However we recognize
the world is far from perfect at present and as a consequence Pangea's strategy
going forward is one of risk aversion until there is some sign of market
improvement. Specifically, Pangea will continue the development of the
Cassanguidi and Bakerville projects and cut expenditure on all projects as well
as overheads.
Pangea will continue to monitor market conditions and particularly the demand
and consequent price at which we can sell the diamonds we produce and react
accordingly to changes in conditions.
Commercial Production and Cash Flow:
During 2009 management's intention is to pursue the projects which have the
potential to be cash positive even with diamond prices substantially discounted
from target prices. In addition, cost reductions are being effected throughout
the company and despite their potential, all other projects currently at a scale
which does not allow them to be cash neutral or better have been put on hold
with equipment secured and placed in a state of care and maintenance.
Pangea's current strategy is clear: reduce overheads and generate the cash to
survive in what will be a tough period.
Key milestones for 2009 include:
Cassanguidi: To complete the construction and commissioning of the expansion
project and establish commercial scale operations in H1 2009;
Bakerville: To optimize existing Pilot Mining operations and if market
conditions and funding permit, to fast-track the development of commercial scale
operations; and
To pursue all other appropriate opportunities in order to build maximum value
for shareholders.
Financial Results and Planning
It is the group's policy to expense all exploration expenditure. The loss for
the year of US$ 17.81 million (2007: US$19 million) includes US$9.2 million
(2007: US$ 9 million) direct exploration expenditure. Total expenditure for the
year was US$ 17.5 million (2007: US$ 25.4 million), including capital
expenditure. Exploration and capital expenditure for the year per country and
per project was comprised as follows:
+--------------------------+-------------+--------------+-------------+-------------+
| For the twelve months | 2008 | 2007 | 2008 | 2007 |
| ended | | | | |
| | | | | |
+--------------------------+-------------+--------------+-------------+-------------+
| | Exploration | Exploration | Capital | Capital |
| | expenditure | expenditure | expenditure | expenditure |
+--------------------------+-------------+--------------+-------------+-------------+
| | US$ | US$ millions | US$ | US$ |
| | millions | | millions | millions |
+--------------------------+-------------+--------------+-------------+-------------+
| CAR - Dimbi Project | 4.02 | 5.10 | 0.63 | 1.60 |
+--------------------------+-------------+--------------+-------------+-------------+
| CAR - Etoile Project | 0.61 | - | 0.04 | - |
| DRC - Tshikapa Project | 1.58 | - | - | - |
| DRC - Longatshimo | 2.50 | 2.60 | 0.41 | 4.30 |
| Project | 0.45 | 1.30 | 1.12 | 0.40 |
| South Africa - All | - | - | 1.04 | 0.10 |
| Projects | | | | |
| Angola - Cassanguidi | | | | |
| Project | | | | |
+--------------------------+-------------+--------------+-------------+-------------+
| Total | 9.16 | 9.00 | 3.23 | 6.40 |
+--------------------------+-------------+--------------+-------------+-------------+
In February 2008 the company raised gross proceeds of US$15 million by placing
16.5 million new shares at GBP0.46 per share. On 15 December 2008 an open offer
was completed, as a result of which 1,536,416,033 shares were issued at a price
of US$0.007 per share.
At 31 December 2008, the cash balance was US$7.3 million (2007: US$3.9 million)
and the company had stock of 5,300 carats valued at approximately US$0.46
million of which US$ 0.36 has not been recognised in the balance sheet in terms
of our treatment of inventory from exploration expenditure in note 1.10 of the
financial statements. At 31 March 2009 the cash balance was US$4.2 million and
the Company had stock of 11,000 carats currently valued at approximately US$1.25
million.
Management and Board
Effective 1 July 2008 Rob Still stepped down from the role as Chief Executive
owing to competing work and family commitments and I assumed the position. Rob
has and will remain involved as executive deputy chairman.
During December 2008, two directors Dewald Joubert and CFO Patrick Cooke
resigned from the board.
I would like to thank both Dewald and Patrick for their respective contributions
to Pangea during their tenure on the board and wish them both well for the
future. Jurgen Schwarz who has been the Company's financial controller for two
years assumed the role of CFO from December 2008 and brings to PDF his 18 years
of experience in the financial discipline.
Acknowledgments
This last financial year has without doubt been our most difficult,
necessitating a lot of extremely hard work in often difficult circumstances.
Despite the challenges faced, a talented and dedicated team continued to
deliver, making possible what has been achieved during 2008 and I would like to
thank all our staff for this and their ongoing efforts.
Brett Thompson
REVIEW OF OPERATIONS
Details of the progress and status of each project are set out in the following
section.
ANGOLA
Angola remains highly prospective for diamond exploration and mining. Conducting
business in this environment is demanding and processes can lead to extended
time periods and financial challenges. This is due to the combined impact of
limited infrastructure (not only poor roads and internal airline organizations
but a customs authority that is undergoing a significant revamp), and a lack of
local skills and other human resource requirements. These challenges are shared
by many other public companies in the diamond mining arena and are slowly being
addressed which will hopefully lead to a more functional business environment in
due course.
The Cassanguidi Project
Expansion of this project is currently underway in order to progress from the
pilot mining phase into commercial production by mid 2009.
An ambitious expansion program has been facilitated with the opportune purchase
of equipment and peripherals from a local operation which had closed, rather
than having to source and transport equipment from South Africa. Following
negotiations with the vendors and other related parties, agreements were reached
to release the equipment and as at the end of 2008, some 60% of the assets
purchased had been transferred to the Cassanguidi site. On site construction
commenced early in 2009 and the project is on schedule for commissioning and
ramp up to full production by mid 2009.
Improvements in recovery rates are anticipated as part of the expansion
programme with the introduction of a more efficient and secure, "hands-free"
recovery system utilizing x-ray machines and pre-concentration using a new Dense
Medium Separation plant (DMS). The DMS receives concentrate from the new
satellite pan plants and the existing pan plant. The new facilities will also be
established in a similar manner to the existing plant, on the western side of
the Luembe River, which diagonally bisects the concession. Options to mine the
resources on the eastern side of the river are still under consideration, and
will be dependent to a large extent upon market conditions.
Production throughout the year at approximately 22,920 carats was below forecast
mainly due to an ageing, diverse mining fleet, fuel delivery interruptions as
well as heavy seasonal rains. Diamond prices for most of the year were on target
with a high of US$218 per carat in November. Unfortunately the December sale
yielded prices which had dropped dramatically by approximately 50% on the back
of a seasonal price low, significantly exacerbated by weak global demand for
rough diamonds.
A series of negotiations were undertaken during the course of 2008 which
culminated in Pangea taking a controlling interest of 90% of local Angolan
subsidiary Sub Sahara Investimentos e Consultoria Lda. This increased Pangea's
effective interest in the Cassanguidi project to 58.5%.
As part of the increased shareholding in Sub Sahara, Pangea also purchased 100%
of all shareholder loans. As a concession for funding the expansion project and
until all shareholder loans have been repaid, agreement has been reached with
local partners for 100% of proceeds to be applied to preferentially repay these
loans.
REPUBLIC OF SOUTH AFRICA
Despite millions of carats of diamonds having been mined over the past century
or more, PDF management are still excited about the potential of South Africa as
a highly prospective and significant diamond region.
Pangea has focused particular attention throughout 2008 on the Harts River and
Bakerville projects in South Africa, with significant successes.
The Bakerville Project
Historically the Bakerville area was the subject of a major diamond rush in the
1920s during which the declared diamond production was reported to be around 7.5
million carats. The project areas are high potential extensions of the
historical production areas which remained sterilized until the 2004 legislation
changes provided a means to access these properties.
Having ceased exploration on the Malmani area at the end of 2007, the Patsema
area became the main area of focus within the Bakerville project during 2008.
The Patsema area has similar potential to the high grade historical potholes and
gravel runs at Bakerville and bulk sampling at the Patsema area on the
Zamenkomst farm was undertaken throughout 2008.
Patsema Zamenkomst Farm
Results of bulk sampling at the Patsema project during 2008 have been
encouraging. Due to the excellent results, a decision was taken to increase the
capacity of the plant at the Zamenkomst site and to purchase the farm on which
the plant and part of the large diamond resource is situated. More than 400
carats of diamonds were recovered from the plant during 2008.
The focus of current exploration is on gravel beds formed on an ancient
land-surface as a deflation deposit. The gravel is unconsolidated with no
overburden and is mined by simple load and haul operations. During December 2008
a resource of 3.6 million m3 at a grade of 3.42carats/100m3 was independently
verified. This resource is however over a small portion of the Pangea property
and is rapidly being increased by inexpensive exploration. During this
exploration new pothole sites are also being uncovered which will be
investigated at a future date. Mineralized potholes have historically yielded
large high diamond grades of up to 500 carats/100m3 and work is underway to
distinguish between mineralized and un-mineralized potholes.
During the first half of the year, bulk sampling operations were concentrated on
processing sufficient volumes of material to acquire information on the grade
distribution of the area. The results toward the end of the first half of the
year were sufficiently encouraging to warrant an increase in the processing
capacity of the trial mining such that up to 60 m3 of run of mine gravel can be
processed per hour.
The equipment required to lift the capacity to this level was a double 16 foot
pan plant mobilized from the Pampierstad bulk sampling operation after sampling
was completed in this area. This was then engineered to fit into the existing
Bakerville plant infrastructure to obtain the required increase in capacity with
negligible capital expenditure.
The pan plant was commissioned during October 2008. Bulk sampling continued over
most of the Eastern portion of the Zamenkomst farm. The results were very
encouraging with areas of exceptional grade indicated. The bulk of this material
occurs from the surface to a depth of half a metre below. No overburden
stripping is required other than scraping off the top layer of vegetation.
There are areas of significantly higher grade that have been processed where
grades of up to 17 carats/100m3 have been attained. To date, a total of over 800
carats have been recovered from the Zamenkomst property bulk sampling
activities. A small parcel of 217 carats was sold on tender in Johannesburg
during July and yielded a price of US$1,448 per carat, well above the US$300 per
carat previously considered for the area.
Indications are that these surface gravels extend to the north and west of the
farm Zamenkomst. Pangea has secured the prospecting rights to additional
properties to the west and north of Zamenkomst.
Feasibility studies are being undertaken to fast track this project to
commercial production as soon as market conditions permit.
The Harts River Project
The Harts River project was identified by the PDF exploration team and
represents a substantial target area which had been overlooked in the past.
A number of large volume gravel deposits situated over a 250km plus stretch of
the paleo-Harts River have been successfully investigated by Pangea. All
activities are now concentrated on the best 40km stretch of the paleo-river
system (Brussels Area) close to the town of Vryburg and other rights held which
are considered less prospective, are in the process of being relinquished.
During 2008 a second bulk sampling exercise was conducted to the north of the
original Brussels site which confirmed the previously obtained grades of the
upper concentrated gravel ("UCG"). Apart from the ongoing grade confirmation
objective, different mining techniques were also investigated during this phase
of bulk sampling, to determine an optimum mining method for large scale
expansion. Trials using a continuous surface mining machine similar to a
road-header as well as ripping and tramping the calcretised gravel matrix with a
large tracked dozer were undertaken to compare costs and efficiencies relative
to the traditional drill and blast method used in the past. With the equipment
available, the large dozer option was considered to be the most suitable.
Extensive percussion drilling has substantially increased the UCG resource and
identified other potentially diamondiferous gravels. Further drilling has been
put on hold for the time being to conserve funds as the resource is considered
large enough to sustain a significant operation.
A double 16 foot pan plant was established on the Pampierstad area in the south
of the Harts River project area and bulk sampling commenced in April 2009.
Diamonds were recovered from the various gravels tested, however the results
were not considered sufficient to warrant further exploration.
The Harts River project has already demonstrated that it can host a large scale,
low cost mining operation recovering high-value diamonds similar to large
successful operations on the middle Orange River. Much of this potential is
already reflected in Pangea's resource statements with significant additional
potential subject only to the expending of additional exploration funds.
Significant work has been undertaken on scoping the development of the
Harts River project during 2008 and this work suggests a capital requirement of
around US$20 million. Any plans to further develop the project will remain on
hold until market conditions are more conducive to a development decision and
funding is more accessible.
The Bloemhof Project
The Bloemhof project occurs in an area of extensive alluvial mining activity and
PDF identified prospective properties which were previously subject to complex
mineral rights arrangements that prevented exploitation. These were acquired as
a result of the recent changes in legislation and prospecting permits over five
blocks of farms have been granted to the underlying PDF Group companies. During
2008 negotiations were concluded with the respective surface rights owners for
access to these farms and some initial exploration was undertaken.
While it is still Pangea's intention to seek suitable joint venture partners to
jointly explore these projects, this is not management's main focus at present
and this process has been put on hold until market conditions improve.
DEMOCRATIC REPUBLIC OF CONGO ("DRC")
Despite civil unrest in certain areas of the country the Lucapa Corridor area in
the Kasai Oriental Province in south-eastern DRC where the Company's projects
are located, has not demonstrated any indication of instability.
Since 2005, Pangea staff have been actively exploring and evaluating its various
target areas and from late 2006 our efforts have been concentrated on the
Tshikapa and Longatshimo River project areas where advanced exploration,
including extensive mapping, pitting and drilling of the various terraces, was
conducted. An extensive bulk sampling operation on the Longatshimo River project
and additional advanced mega pitting together with a pumping operation was
conducted on the Tshikapa River project.
Longatshimo River project areas have the potential to host both extensive and
highly economic deposits of alluvial diamonds.
Pangea has re-evaluated its land holdings and relinquished permits outside of
the target focus areas, resulting in the termination of both the Luebo and Kasai
projects. Pangea currently holds six PEPM (small mine) permits and six PR
(research exploration) permits.
Notwithstanding the excellent potential of alluvial diamond mining in the Kasai
Occidental region of the DRC, the logistical challenges to commercial scale
diamond mining are considerable.
During the latter half of 2007 Pangea pioneered a new 4700km overland route from
South Africa through Namibia and Angola to its Southern Kasai Occidental
licenses. This entailed the building of a new road and the task of constructing
numerous steel bridges from Dundo in Angola to the camp. The last items of the
600 ton convoy of mining equipment transported to the project reached the
Longatshimo camp during December 2007.
This route has subsequently been used to bring a number of additional shipments
of equipment from South Africa to the projects. In addition Pangea is well
advanced in its discussions with the relevant Angolan and DRC authorities to be
able to source fuel from Angola for its DRC projects. This would result in a
significant cost saving to the projects on one of the primary input costs.
Over 3,370 carats were recovered from the Tshikapa and Longatshimo River project
areas during 2008. The first parcel of 1,500 carats was exported to Antwerp in
October 2008 and the government evaluator in DRC estimated a valuation at an
average price of US$180 per carat for these diamonds. The diamonds will be sold
by tender in Antwerp by the Company's agents, WWW International in due course
once a more sizeable parcel is reached.
The Longatshimo River Project
The bulk sampling plant consisting of a 20 ton per hour Dense Media Separation
plant ("DMS") and associated equipment with a hands-free grease belt recovery
was set up and commissioned on site in February 2008. This is a first for the
area and is currently the only mechanized operation of this size in the Kasai
Occidental Region. The first bulk sample was taken in February 2008.
All pitting, mapping, topographical and auger hole information was collated and
assessed and prospective sites close to the plant which demonstrated high grade
pit results and limited overburden, were delineated. To date a total of 170 mega
pits, 370 "jimbo pits" and 98 auger holes have been dug in this project area,
providing detailed geological and grade information. The initial focus of the
bulk sampling operation was on relatively shallow gravels in close proximity to
the plant site. Eight bulk samples which include four sites in close proximity
to the Kapopo River, one adjacent to the Longatshimo River and three along a
tributary to the Kapopo River, have been completed to date.
Initially the shallower flood plain gravels were targeted with acceptable
results. Further analysis of these results suggested the potential of higher
grade material under slightly deeper cover. The sampling program was modified to
focus on exploring this potential. It was found that the diamondiferous gravel
increased in volume and grade under the thicker cover.
These deposits are at a higher elevation than the river and as such remain dry
and mineable even in the wet season. Grades as high as 108 carats/m3 were
encountered, with an average grade of 34 carats/100m3 from the last bulk
sampling area. Over 2,800 carats have been recovered from the initial bulk
sampling exercise to date. A targeted block of more than 150,000m3 gravel which
includes the last two bulk sample sites with an average grade of 33 carats/m3
and an average overburden of 4.5m has been delineated adjacent to the
Kapopo River.
The bulk sampling results to date are very encouraging, indicating that there
are sufficient resources at economic grades to support a mine under normal
diamond market conditions. The objective of the bulk sampling programme which is
to delineate economic resources has to date been successful. However at the
current scale of operations, and the current weak rough diamond price, the bulk
sampling activities are not expected to be cash flow positive. As a consequence,
bulk sampling operations in this highly prospective area have been temporarily
suspended until diamond prices improve. An updated ore resource estimate is in
progress.
The Tshikapa River Project
Advanced exploration continued on the Tshikapa River project areas with extended
mega pitting, mapping and a new initiative pumping programme. An additional 63
mega pits were dug during 2008 to refine the evaluation of the terrace gravels.
One of these mega pits, DMP30B which is situated in a tributary to the
Tshikapa River yielded a grade of 228 carats/100m3. The mega pitting programme
was completed in November and prospective bulk sampling sites selected.
Additional gravel pumping equipment was imported and commissioned on site in
April 2008. Prospective sites were selected from an assessment of all geological
exploration results to date. The pumping programme commenced in the dry season
on the 1st May 2008 within the relatively dry elevated bank of the
Tshikapa River. The aim of this operation was to evaluate the shallow riverbank
and floodplain gravels which are normally submerged in the rainy season with the
assistance of a high pressure water pump and classifier.
This program was assisted by two local divers, to mobilise and guide the pump
during the rainy season. A total of eight sites were pumped with two areas
indicating a grade of more than 500 carats/100m3. Some of the larger gravel
volumes were bagged and transported to the Longatshimo DMS plant for processing.
The initial results of this pumping project suggest that although the sample
volumes of these easily accessible river bank gravels are often challenging to
measure, the gravels are highly prospective and the sale of the diamonds can be
used as an easy method for generating revenue to fund the main terrace
exploration programme.
The next phase of evaluation of the Tshikapa project will require the
significant investment needed to commence bulk sampling and will be put on hold
until market conditions permit.
CENTRAL AFRICAN REPUBLIC ("CAR")
Pangea's primary focus in the CAR continues to be the 1,000 km2 Dimbi project in
the south-east of the country.
The Dimbi Project
Pangea's wholly owned subsidiary, Dimbi Diamants SAU ("Dimbi Diamants")
continued with the bulk sampling exercise during 2008 which has focused on an
area within a 3km radius of the plant. Both the Mea River (Paleo-Kotto)
floodplain and the Akongo River (a Dimbi Formation tributary) were sampled with
the objective to delineate sufficient ore resources at economic grades to
initially supply over 5 years of mine life at the planned "Module 1" run of mine
gravel processing capacity of approximately 40,000m3 per month.
Operations were expanded during Q1 2008 with the delivery and commissioning of
additional earthmoving equipment, allowing bulk sampling of areas at the
extremities of the initial mining block.
Over 3,500 carats were recovered to October 2008 when a failure of the main
generator caused operations to be suspended. More than 8,000 carats of diamonds
had been recovered in total at the project from start-up to the suspension of
activities. Due to prevailing market conditions and lower diamond prices, It was
decided not to resume operations but rather to maintain the suspension of the
project and place the plant and equipment on care and maintenance. Of the
diamonds produced to date, 6,310 carats were sold during 2008 at an average
price of US$163 per carat.
Data from bulk sampling trenches mined across the Paleo-Kotto and the
Akongo River floodplains indicated that future potentially mineable large
resource blocks would mainly be confined to the Paleo-Kotto gravels. As a result
an extensive auger drilling programme was embarked on to test the full extent of
this 50km long gravel deposit on the Dimbi Licence. Approximately 50% of the
resource has been drilled confirming the presence of large gravel deposits. Of
particular interest is that significant gravel blocks have been found to be
present outside of the wet floodplain and under less cover than in the
floodplain.
The Etoile Project
This prospect, covering some 3,000 km2, is located in the Mouka Ouadda region of
the eastern CAR along the Kotto River where extensive river and river bank
artisanal activities are present. Pangea has established two field camps on the
Concession, one at Nzako and one 150 km to the north at Bangana. In both
localities the targets are dry terrace paleo-channels occurring next to more
recent alluvial diamond deposits in present day rivers. The deposits are
evaluated by hand pitting and diamond recovery is by bushman jigs.
At the Nzako site the grade of the paleo-channel deposits was too low to warrant
further exploration and our activities there have ceased. At Bangana the
potential for a large dry alluvial deposit under thin cover was identified.
Diamonds with an average size of about 0.5 carats were encountered in many pits.
Activities on this prospect have also been suspended pending the recovery of the
diamond market.
CONSOLIDATED INCOME STATEMENT
For the year ended December 2008
+----------------------------------+----------------+----------------+
| | Group | Group |
+----------------------------------+----------------+----------------+
| | 2008 | 2007 |
+----------------------------------+----------------+----------------+
| | | |
+----------------------------------+----------------+----------------+
| | US$ | US$ |
+----------------------------------+----------------+----------------+
| | | |
+----------------------------------+----------------+----------------+
| Diamond revenue * | 2,802,564 | 4,816,980 |
+----------------------------------+----------------+----------------+
| | | |
+----------------------------------+----------------+----------------+
| Other income | 4,533,901 | - |
+----------------------------------+----------------+----------------+
| | | |
+----------------------------------+----------------+----------------+
| Pilot mining operating | (5,644,498) | (5,319,251) |
| expenditure | | |
+----------------------------------+----------------+----------------+
| | | |
+----------------------------------+----------------+----------------+
| Exploration expenditure | (9,162,585) | (8,953,315) |
+----------------------------------+----------------+----------------+
| | | |
+----------------------------------+----------------+----------------+
| Other operating expenses | (13,703,400) | (7,782,231) |
+----------------------------------+----------------+----------------+
| | | |
+----------------------------------+----------------+----------------+
| Equity-settled share based | 3,862,317 | (2,576,306) |
| payment expense | | |
+----------------------------------+----------------+----------------+
| | | |
+----------------------------------+----------------+----------------+
| Operating loss | (17,311,701) | (19,814,123) |
+----------------------------------+----------------+----------------+
| | | |
+----------------------------------+----------------+----------------+
| Finance income | 142,964 | 799,038 |
+----------------------------------+----------------+----------------+
| | | |
+----------------------------------+----------------+----------------+
| Finance expense | (29,720) | (4,091) |
+----------------------------------+----------------+----------------+
| | | |
+----------------------------------+----------------+----------------+
| Loss before taxation | (17,198,457) | (19,019,176) |
+----------------------------------+----------------+----------------+
| | | |
+----------------------------------+----------------+----------------+
| Taxation | - | - |
+----------------------------------+----------------+----------------+
| | | |
+----------------------------------+----------------+----------------+
| Loss for the year | (17,198,457) | (19,019,176) |
+----------------------------------+----------------+----------------+
| | | |
+----------------------------------+----------------+----------------+
| | | |
+----------------------------------+----------------+----------------+
| Attributable to: | | |
+----------------------------------+----------------+----------------+
| - Equity holders of the parent | (17,198,457) | (18,691,186) |
| company | | |
+----------------------------------+----------------+----------------+
| - Minority interests | - | (327,990) |
+----------------------------------+----------------+----------------+
| Loss for the year | (17,198,457) | (19,019,177) |
+----------------------------------+----------------+----------------+
| | | |
+----------------------------------+----------------+----------------+
| Loss per share (US cents) | (8.64) | (15.95) |
+----------------------------------+----------------+----------------+
| | | |
+----------------------------------+----------------+----------------+
| | | |
+----------------------------------+----------------+----------------+
| | | |
+----------------------------------+----------------+----------------+
| * net of applicable royalties | | |
+----------------------------------+----------------+----------------+
CONSOLIDATED BALANCE SHEET
As at 31 December 2008
+---------------------------------------+----------------+----------------+
| | Group 2008 | Group 2007 |
+---------------------------------------+----------------+----------------+
| | US$ | US$ |
+---------------------------------------+----------------+----------------+
| Assets | | |
+---------------------------------------+----------------+----------------+
| Total non-current assets | 13,304,165 | 15,722,819 |
+---------------------------------------+----------------+----------------+
| Mineral properties | 2,636,532 | 3,170,390 |
+---------------------------------------+----------------+----------------+
| Plant and equipment | 10,667,633 | 11,143,370 |
+---------------------------------------+----------------+----------------+
| Unlisted investments | - | 1,409,059 |
+---------------------------------------+----------------+----------------+
| Total current assets | 8,111,464 | 4,673,240 |
+---------------------------------------+----------------+----------------+
| Trade and other receivables | 739,788 | 486,619 |
+---------------------------------------+----------------+----------------+
| Inventory | 101,500 | 315,261 |
+---------------------------------------+----------------+----------------+
| Cash and cash equivalents | 7,270,175 | 3,871,360 |
+---------------------------------------+----------------+----------------+
| Total assets | 21,415,628 | 20,396,059 |
+---------------------------------------+----------------+----------------+
| Equity and liabilities | | |
+---------------------------------------+----------------+----------------+
| Equity | | |
+---------------------------------------+----------------+----------------+
| Share capital | 12,137,627 | 586,749 |
+---------------------------------------+----------------+----------------+
| Share premium | 61,988,226 | 48,165,897 |
+---------------------------------------+----------------+----------------+
| Foreign currency translation reserve | 325, 381 | (177,085) |
+---------------------------------------+----------------+----------------+
| Share-based equity reserve | - | 3,862,317 |
+---------------------------------------+----------------+----------------+
| Accumulated losses | (53,521,706) | (36,323,249) |
+---------------------------------------+----------------+----------------+
| Total equity attributable to equity | 20,929,528 | 16,114,629 |
| holders of the company | | |
+---------------------------------------+----------------+----------------+
| Minority interest | - | - |
+---------------------------------------+----------------+----------------+
| Total equity | 20,929,528 | 16,114,629 |
+---------------------------------------+----------------+----------------+
| Non-current liability | | |
+---------------------------------------+----------------+----------------+
| Loans and borrowings | - | 3,786,601 |
+---------------------------------------+----------------+----------------+
| Total current liabilities | 486,101 | 494,829 |
+---------------------------------------+----------------+----------------+
| Loans and borrowings | 85,237 | 201,316 |
+---------------------------------------+----------------+----------------+
| Finance lease liability | 387,755 | - |
+---------------------------------------+----------------+----------------+
| Trade and other payables | 13,108 | 293,513 |
+---------------------------------------+----------------+----------------+
| Total equity and liabilities | 21,415,628 | 20,396,059 |
+---------------------------------------+----------------+----------------+
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Year ended 31 December 2008
+-------------+---------------+---------------+-------------+---------------+----------------+----------------+-------------+----------------+
| | Share | Share | Foreign | Share | Accumulated | Total | Minority | Total |
| | Capital | Premium | Currency | Based | Losses | | Interest | Equity |
| | | | Translation | Equity | | | | |
| | | | Reserve | Reserve | | | | |
+-------------+---------------+---------------+-------------+---------------+----------------+----------------+-------------+----------------+
| | US$ | US$ | US$ | US$ | US$ | US$ | US$ | US$ |
+-------------+---------------+---------------+-------------+---------------+----------------+----------------+-------------+----------------+
| Balance at | 585,415 | 48,000,564 | (156,530) | 1,286,011 | (17,632,063) | (16,502,582) | 327,990 | 32,411,387 |
| 31 December | | | | | | | | |
| 2006 | | | | | | | | |
+-------------+---------------+---------------+-------------+---------------+----------------+----------------+-------------+----------------+
| | | | | | | | | |
+-------------+---------------+---------------+-------------+---------------+----------------+----------------+-------------+----------------+
| Shares | 1,334 | 165,333 | - | - | - | - | - | 166,667 |
| issued for | | | | | | | | |
| cash | | | | | | | | |
+-------------+---------------+---------------+-------------+---------------+----------------+----------------+-------------+----------------+
| | | | | | | | | |
+-------------+---------------+---------------+-------------+---------------+----------------+----------------+-------------+----------------+
| Share-based | - | - | - | 2,576,306 | - | 2,576,306 | - | 2,576,306 |
| payments | | | | | | | | |
+-------------+---------------+---------------+-------------+---------------+----------------+----------------+-------------+----------------+
| | | | | | | | | |
+-------------+---------------+---------------+-------------+---------------+----------------+----------------+-------------+----------------+
| Total | - | - | (20,555) | - | (18,691,186) | (18,711,741) | (327,990) | (19,039,731) |
| recognised | | | | | | | | |
| income and | | | | | | | | |
| expense | | | | | | | | |
+-------------+---------------+---------------+-------------+---------------+----------------+----------------+-------------+----------------+
| | | | | | | | | |
+-------------+---------------+---------------+-------------+---------------+----------------+----------------+-------------+----------------+
| Balance at | 586,749 | 48,165,897 | (177,085) | 3,862,317 | (36,323,249) | (32,638,017) | - | 16,114,629 |
| 31 December | | | | | | | | |
| 2007 | | | | | | | | |
+-------------+---------------+---------------+-------------+---------------+----------------+----------------+-------------+----------------+
| | | | | | | | | |
+-------------+---------------+---------------+-------------+---------------+----------------+----------------+-------------+----------------+
| Shares | 11,550,878 | 13,822,329 | - | - | - | - | - | 25,373,207 |
| issued for | | | | | | | | |
| cash | | | | | | | | |
+-------------+---------------+---------------+-------------+---------------+----------------+----------------+-------------+----------------+
| | | | | | | | | |
+-------------+---------------+---------------+-------------+---------------+----------------+----------------+-------------+----------------+
| Share-based | - | - | - | (3,862,317) | - | (3,862,317) | - | (3,862,317) |
| payments | | | | | | | | |
+-------------+---------------+---------------+-------------+---------------+----------------+----------------+-------------+----------------+
| | | | | | | | | |
+-------------+---------------+---------------+-------------+---------------+----------------+----------------+-------------+----------------+
| Total | - | - | 502,466 | - | (17,198,457) | (16,695,991) | - | (16,695,991) |
| recognised | | | | | | | | |
| income and | | | | | | | | |
| expense | | | | | | | | |
+-------------+---------------+---------------+-------------+---------------+----------------+----------------+-------------+----------------+
| | | | | | | | | |
+-------------+---------------+---------------+-------------+---------------+----------------+----------------+-------------+----------------+
| Balance at | 12,137,627 | 61,988,226 | 325,381 | - | (53,521,706) | (53,196,325) | - | 20,929,528 |
| 31 December | | | | | | | | |
| 2008 | | | | | | | | |
+-------------+---------------+---------------+-------------+---------------+----------------+----------------+-------------+----------------+
CONSOLIDATED CASH FLOW STATEMENT
For the year ended 31 December 2008
+------------------------------------------+--------+--------------+---------------+
| | Notes | Group | Group |
+------------------------------------------+--------+--------------+---------------+
| | | 2008 | 2007 |
+------------------------------------------+--------+--------------+---------------+
| | | US$ | US$ |
+------------------------------------------+--------+--------------+---------------+
| | | | |
+------------------------------------------+--------+--------------+---------------+
| Net cash flows utilised in operating | | (18,278,363) | (15,180,382) |
| activities | | | |
+------------------------------------------+--------+--------------+---------------+
| Net cash flows utilised in investing | | (4,198,493) | (6,965,275) |
| activities | | | |
+------------------------------------------+--------+--------------+---------------+
| Finance income | | 142,964 | 799,038 |
+------------------------------------------+--------+--------------+---------------+
| Finance expense | | (29,720) | (4,091) |
+------------------------------------------+--------+--------------+---------------+
| Acquisition of plant and equipment | | (3,234,901) | (6,351,163) |
+------------------------------------------+--------+--------------+---------------+
| Acquisition of investment | | (485,000) | - |
+------------------------------------------+--------+--------------+---------------+
| Acquisition of mineral properties | | (591,836) | - |
+------------------------------------------+--------+--------------+---------------+
| Acquisition of unlisted investments | | - | (1,409,059) |
+------------------------------------------+--------+--------------+---------------+
| | | | |
+------------------------------------------+--------+--------------+---------------+
| Shares issued for cash | | 25,373,207 | 166,667 |
+------------------------------------------+--------+--------------+---------------+
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1. Significant accounting policies
Pangea DiamondFields plc ("the Company") is a company domiciled in the Isle of
Man. The consolidated annual financial information as at and for the year ended
31 December 2008 comprises the Company and its subsidiaries (together referred
to as "the Group"). The consolidated financial statements incorporate the
principal accounting policies set out below.
1.1 Statement of compliance
The consolidated financial statements are prepared in accordance with
International Financial Reporting Standards ("IFRS") and its interpretations
adopted by the International Accounting Standards Board ("IASB") and with the
companies Act of the Isle of Man.
1.2 Basis of preparation
The consolidated financial statements have been prepared in US dollars on the
historical cost basis except for financial instruments classified as
available-for-sale measured at fair value. The preparation of financial
statements in conformity with IFRS requires management to make judgements,
estimates and assumptions that affect the application of policies and reported
amounts of assets and liabilities, income and expenses. The estimates and
assumptions are based on historical experience and various other factors that
are believed to be reasonable under the circumstances, the results of which form
the basis of making the judgements about carrying values of assets and
liabilities that are not readily apparent from other sources. Actual results may
differ from these estimates. The estimates and underlying assumptions are
reviewed on an ongoing basis. Revisions to accounting estimates are recognized
in the period in which the estimate is revised if the revision affects only that
period, or in the period of revision and future periods if the revision affects
both current and future periods. The key area of judgement and estimates by
management relates to the assessment of the continued viability of exploration
projects in respect of which property acquisition costs and mineral and surface
rights have been capitalized as mineral properties on the balance sheet.
1.3 Exploration and development expenditure
Exploration and development costs are expensed as incurred. If it is
subsequently established that a project has reached an economically viable stage
then all further pre-production expenditure related to development is
capitalized. Costs related to property acquisition and mineral and surface
rights are capitalised as mineral properties only when acquired through business
combination or when projects reach an economically viable stage.
If a project in respect of which project acquisition costs or mineral and
surface rights have been capitalized is subsequently considered not viable and
is abandoned, the amount capitalized will be written off in the Income
Statement.
Amortisation or depreciation commences in the first year of commercial
production after which amortization is provided over the time contemplated for
the economic extraction of the resource.
1.4 Impairment of non-financial assets
The carrying amounts of the Group's non-financial assets are reviewed at each
balance sheet date to determine whether there is any indication of impairment.
If there is any indication that an asset may be impaired, its recoverable amount
is estimated. The recoverable amount is the higher of its fair value less costs
to sell and its value in use.
In assessing value in use, the expected future cash flows from the asset 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. An impairment loss is recognized whenever the carrying amount of an
asset exceeds its recoverable amount. Impairment losses are recognized in the
income statement.
An impairment loss is reversed if there has been a change in the estimates used
to determine the recoverable amount. An impairment loss is reversed only to the
extent that the asset's carrying amount does not exceed the carrying amount that
would have been determined, net of depreciation or amortisation, if no
impairment loss had been recognized.
2. New standards and interpretations not yet adopted
A number of new standards, amendments to standards and interpretations are not
yet effective for the year ended 31 December 2008 and have not been applied in
preparing these consolidated financial statements. IFRS 8 Operating segments -
effective for periods beginning on or after 1 January 2009 Revised IAS23
Borrowing costs - effective for periods beginning on or after 1 January 2009.
The statements would not have any impact on the Group's financial statements.
3. Segment reporting
Segment information is presented in respect of the Group's business and
geographical segments.
The primary format, business segments, is based on the Group's management and
internal reporting structure.
Segment results, assets and liabilities include items directly attributable to a
segment as well as those that can be allocated on a reasonable basis.
Unallocated items comprise mainly corporate assets and expenses.
Segment capital expenditure is the total cost incurred during the period to
acquire segment assets that are expected to be used for more than one period.
Business segments
The Group has a single business segment, exploration activities. Accordingly, no
primary business segment Disclosure has been provided as it would mirror the
amounts disclosed in the balance sheet, income statement and cash flow
statement.
Geographical segments
The Group currently only has major exploration projects in Africa. The
exploration activities are located in Angola, the Democratic Republic of Congo
("DRC"), Central African Republic ("CAR") and South Africa.
In presenting information on the basis of geographical segments, segment assets
are based on the geographical location of the assets.
+----------------+---------------+--------------+--------------+---------------+---------------+
| 2008 | Total | Angola | DRC | CAR | South |
| | | | | | Africa |
+----------------+---------------+--------------+--------------+---------------+---------------+
| | US$ | US$ | US$ | US$ | US$ |
+----------------+---------------+--------------+--------------+---------------+---------------+
| Total Assets | 12,310,149 | 4,112,216 | 3,544,858 | 2,810,306 | 1,842,769 |
+----------------+---------------+--------------+--------------+---------------+---------------+
| Cash utilised | (13,359,625) | (2,482,547) | (4,318,220) | (4,562,951) | (1,995,908) |
| by operating | | | | | |
| activities | | | | | |
+----------------+---------------+--------------+--------------+---------------+---------------+
| Cash utilised | (3,713,493) | (1,037,866) | (412,308) | (667,078) | (1,596,241) |
| by investing | | | | | |
| activities | | | | | |
+----------------+---------------+--------------+--------------+---------------+---------------+
| Capital | (3,826,738) | (1,037,866) | (412,308) | (667,078) | (1,709,486) |
| expenditure | | | | | |
+----------------+---------------+--------------+--------------+---------------+---------------+
| Revenue | 2,802,564 | 2,802,564 | - | - | - |
| | | | | | |
+----------------+---------------+--------------+--------------+---------------+---------------+
+----------------+---------------+--------------+--------------+---------------+---------------+
| 2007 | Total | Angola | DRC | CAR | South |
| | | | | | Africa |
| | | | | | |
+----------------+---------------+--------------+--------------+---------------+---------------+
| | US$ | US$ | US$ | US$ | US$ |
| | | | | | |
+----------------+---------------+--------------+--------------+---------------+---------------+
| Total Assets | | 5,243,199 | 3,991,774 | 3,969,724 | |
| | 14,757,608 | | | | 1,552,910 |
+----------------+---------------+--------------+--------------+---------------+---------------+
| Cash utilised | (11,297,201) | (241,562) | (3,353,563) | (5,864,575) | (1,837,502) |
| by operating | | | | | |
| activities | | | | | |
+----------------+---------------+--------------+--------------+---------------+---------------+
| Cash utilised | (6,369,301) | (134,667) | (4,221,731) | (1,600,172) | (412,731) |
| by investing | | | | | |
| activities | | | | | |
+----------------+---------------+--------------+--------------+---------------+---------------+
| Capital | (6,351,163) | (134,667) | (4,203,593) | (1,600,172) | (412,731) |
| expenditure | | | | | |
+----------------+---------------+--------------+--------------+---------------+---------------+
| Revenue | 4,816,980 | 4,702,736 | - | - | 114,244 |
| | | | | | |
+----------------+---------------+--------------+--------------+---------------+---------------+
The following items have not been allocated to any of the geographical locations
as they relate to the corporate head office:
+-------------------------------------------------------+---------------+----------------+
| | 2008 | 2007 |
+-------------------------------------------------------+---------------+----------------+
| | US$ | US$ |
+-------------------------------------------------------+---------------+----------------+
| Total assets | 9,105,480 | 5,638,452 |
+-------------------------------------------------------+---------------+----------------+
| Cash utilised by operating activities | (4,918,737) | (3,883,181) |
+-------------------------------------------------------+---------------+----------------+
| Cash utilised by investingactivities | (485,000) | (595,974) |
+-------------------------------------------------------+---------------+----------------+
| Cash generated/(utilised) by financing activities | 25,373,207 | (56,126) |
+-------------------------------------------------------+---------------+----------------+
4. Loss per share
+------------------------------------------+--------------+-----------------+
| | 2008 US | 2007 US cents |
| | cents | |
+------------------------------------------+--------------+-----------------+
| Loss per share | (8.64) | (15.95) |
+------------------------------------------+--------------+-----------------+
| | | |
+------------------------------------------+--------------+-----------------+
The loss per share for the group has been calculated using the weighted average
number of shares in issue during the period. The weighted average number of
shares in the period was 199,076,922 (2007: 117,199,946) and the loss after tax
for the group was $17,198,457 (2007: $18,691,186).
Diluted loss per share
Due to the losses incurred during the year, a diluted loss per share has not
been calculated as this would serve to reduce the basic loss per share.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR SEFFIDSUSEEL
Pangea Diamond (LSE:PDF)
Gráfica de Acción Histórica
De May 2024 a Jun 2024
Pangea Diamond (LSE:PDF)
Gráfica de Acción Histórica
De Jun 2023 a Jun 2024
