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Shanta Gold issues interim results for the period ended 30 June 2005
7 October 2005
Interim results for the period ended 30 June 2005 (PDF - 47KB)
Shanta Gold Limited ("Shanta" or the "Company") was admitted to AIM on 11 July 2005. Prior to this date no trading took place in the Company.
Limited exploration activity was undertaken by Shanta Mining Company Limited, the Company's wholly owned operating subsidiary in Tanzania, during the period under review. The focus of activities since the end of the period has been on extensive geological mapping in the Singida properties. Through this the geological team has identified key areas for soil geochemical analysis and stream sediment sampling to take place. In addition, areas that consist of mainly granites, which are unlikely to be highly prospective, have been identified and may be dropped in the annual Prospecting Licence ("PL") renewal process saving holding costs and PL fees.
It is anticipated that drilling will commence at the Katario Project ("Katario") during October 2005. The programme of 2,000 metres of reverse circulation drilling is expected to be completed within a two to three month period and should provide data to help delineate the extent of the orebody. On completion of the drilling at Katario the board intends to implement its plans for further drilling at Mgusu in order to expand its resource base and to take this 741koz resource project to its next stage of development.
On 1 September, 2005, Shanta announced the intention to appoint a chief operating officer based in Tanzania; the closure of the Johannesburg office, and the move from executive to non-executive director positions for George Bennet (Chief Executive Officer) and Walter Vorwerk (Chief Financial Officer). Mr Bennet will continue to interact with Shanta's investors and Mr Vorwerk will assume the role of chairman of the audit committee. This development is expected to achieve savings of approximately US$400 000 over 2 years.
Financial Results
Consolidated results for the Company have been prepared based on international accounting standards. As Shanta was incorporated in May and had no transactions prior to listing comparative figures would be meaningless and are therefore not provided.
| Period to 30 June 2005 US$000 | |
|---|---|
| Turnover | - |
| Exploration and evaluation expenditure | (14) |
| Administrative expenses | (28) |
| Operating loss | (42) |
| Loss per share (US cents) sup2; | 0.52 |
| At 30 June 2005 US$000 | |
|---|---|
| Assets | |
| Non current assets | |
| Intangible assets | 1,281 |
| Property, plant and equipment | 134 |
| Goodwill | 3,425 |
| 4,840 | |
| Current assets | |
| Other debtors and prepayments | 101 |
| Total assets | 4,941 |
| Equity and liabilities | |
| Capital and reserves | |
| Share capital | 4,758 |
| Accumulated loss | (42) |
| 4,716 | |
| Non current liabilities | |
| Loans from related parties | 147 |
| Net current liabilities | |
| Other creditors and accruals | 78 |
| Total equity and liabilities | 4,941 |
| Period to 30 June 2005 US$000 | |
|---|---|
| Cashflows from operating activities | |
| Loss before tax | (42) |
| (Increase) /decrease in accounts receivable | (1) |
| Increase /(decrease) in accounts payable | 18 |
| Cash outflow from operations | (25) |
| Cashflows from investing activities | |
| Investment in intangible and tangible assets | (47) |
| Cashflows from financing activities | |
| Loans from related parties | 180 |
| Share issue expenses | (160) |
| 20 | |
| (Decrease)/increase in cash | (52) |
| Cash and equivalents at the beginning of the period | 52 |
| Cash and equivalents at the end of the period | - |
- These financial statements have been approved by the board of directors but are un-audited. The financial information contained in these statements does not constitute statutory accounts.
- The loss per share was calculated from the loss for the period attributable to ordinary shareholders of US$ 41,550 divided by the time-weighted average number of shares in issue during the period of 8,035,716. There is no diluting effect of share options or warrants on the basic loss per share at 30 June 2005.
- The financial statements have been prepared in accordance with International Financial Reporting Standards.
For further information:
Shanta Gold
Richard Shead:
Mobile: +27 (0) 82 654 1821
Walter Vorwerk
Mobile: +27 (0) 83 308 0080
Conduit PR
Amanda Harris
Tel: +44 (0) 207 618 8760
Mobile: +44 (0) 7900 322 022
