Half-yearly Report
03/02/2014 07:00
3 February 2014
Conroy Gold and Natural Resources plc
("Conroy" or "the Company")
Half-yearly results for the six months ended 30 November 2013
Conroy Gold and Natural Resources plc (AIM:CGNR; ESM:CGNR.I), the gold
exploration and development company planning to develop a gold mine at
Clontibret in Ireland, announces its results for the six months ended 30
November 2013.
Highlights:
* Viability of proposed gold mine at Clontibret confirmed
* Preliminary economic assessment process design criteria and operating costs
validated
* Lower sulphur grade implies savings in capital and operating costs
* Processing plant capital costs estimated to fall from US$20.16 million to
US$ 18.5 million
* Process operating costs estimated to fall from US$ 13.64/t to US$12.26/t
* Further encouraging results at nearby Clay Lake Gold Target
* High zinc values reported from Base Metal Exploration
Commenting, Chairman, Professor Richard Conroy said:
"I am delighted that the results of the metallurgical and mineralogical
testwork at Gold Fields/Biomin in South Africa have confirmed the viability of
the proposed gold mine at Clontibret and that a review by independent
consultants Tetra Tech Inc. validated the Preliminary Economic Assessment
(Scoping Study) process design criteria and operating costs and in particular
that the capital cost of the proposed processing plant is now estimated to fall
from US$ 20.16 million to US$ 18.5 million and the process operating costs to
fall from US$ 13.64/t to US$ 12.26/t."
For further information please contact:
Conroy Gold and Natural Resources plc Tel: +353-1-661-8958
Professor Richard Conroy, Chairman
Sanlam Securities UK Limited (Nomad) Tel: +44-20-7628-2200
Simon Clements/Virginia Bull
Hybridan LLP (Broker) Tel: +44-20-7947-4350/ 4361
Claire Noyce/William Lynne
IBI Corporate Finance Limited (ESM Adviser) Tel: +353-766-234-800
Ger Heffernan
Lothbury Financial Services Limited Tel: +44-20-3440-7620
Michael Padley/Michael Spriggs
Hall Communications Tel: +353-1-660-9377
Don Hall
Visit the website at: www.conroygold.com
CHAIRMAN'S STATEMENT
Dear Shareholder,
I have great pleasure in presenting your Company's Interim Report for the six
months ended 30
November 2013. This was a period of further significant progress for your
Company during which the viability of your Company's proposed mine at
Clontibret was confirmed and excellent results were reported from your
Company's gold and base metal exploration targets.
Confirmation of Amenability and Technical Viability of Clontibret Mining
Project
The final results of the mineralogical and metallurgical testwork programme on
the ore grade material sent to Goldfields/BIOMIN in South Africa confirmed the
amenability and technical viability of using the BIOX technique to process the
ore at Clontibret.
The mineralogical and metallurgical testwork, which was supervised and managed
by independent consultants Tetra Tech Inc. ("Tetra Tech") was carried out on
350kg of drill core representative of both lode and stockwork ore grade
material with a 10 per cent dilution factor with a grade similar to that
expected for run of mine.
The testwork results indicated fast oxidation kinetics, achieving over 90 per
cent oxidation for both lode and stockwork concentrate samples. Maximum gold
extractions achieved were 90.4 per cent and 87.1 per cent respectively with
overall recoveries confirmed by Tetra Tech to be in line with their independent
Scoping Study.
BIOX, which is a well established bacterial oxidation technique, was
recommended by Tetra Tech as an appropriate technology for treating the gold
sulphide concentrate at the proposed gold mine at Clontibret. BIOX is an
environmentally friendly proven technology with a number of plants in operation
worldwide including South Africa, Ghana, Brazil, China and Australia. The BIOX
process gives improved rates of gold recovery at significantly lower capital
and operating costs.
A review by Tetra Tech of the results of the final mineralogical and
metallurgical testwork programme on the ore grade material sent to Gold Fields/
Biomin in South Africa, validated the Preliminary Economic Assessment ("PEA")
(Scoping Study) process design criteria and operating costs.
The review of the metallurgical testwork results confirmed the key process
design parameters, including the amenability of the ore to bio-oxidative
pre-treatment, and the suitability of the proposed BIOX oxidation process.
Other than a lower sulphur grade in concentrate, results were as anticipated in
the PEA. The decreased sulphur grade implies savings in both capital and
operating costs.
In relation to these savings the capital cost for the proposed processing plant
is now estimated by Tetra Tech at US$ 18.5 million compared with the US$ 20.16
million in the PEA and the process operating costs are estimated to fall from
US$ 13.64/t to US$ 12.26/t.
Exploration
Gold Targets
Exploration of your Company's gold targets continued with further highly
encouraging results along the thirty mile gold trend in the Longford-Down
Massif in Ireland, which your Company has discovered.
Clay Lake Gold Target
Further excellent progress has been made at your Company's Clay Lake Target, 3
miles from Clontibret. This gold target is a carbonaceous shale hosted gold
deposit, encompassing many of the geological attributes of major sediment
hosted gold deposits. Examples of these deposits include the multi-million
ounce gold deposits at Tien Shan such as the 169.3m oz Muruntau Mine, one of
the largest gold deposits in the world and the 17.4m oz Kinross Mine in Brazil,
which at a grade of 0.41g/t gold and a cost of US$ 720/oz, produced over
453,000oz gold in 2011.
Base Metal Targets
An ongoing evaluation of old lead workings within your Company's licence area
as part of your Company's exploration programme for base metals yielded highly
positive zinc results of up to 30 per cent.
Grab samples were taken from twelve of the old lead workings spoil heaps in the
Company's licence area. Most of these samples gave high lead values as might be
expected although a lead value of 7.31 per cent. at the Tassan workings in
County Monaghan was particularly high.
Two samples from the Cornaurney workings in County Cavan gave exceptionally
high zinc levels of 30.00 and 18.40 per cent. respectively. These samples also
had elevated copper of 0.125 and 0.216 per cent., silver of 9.2 and 3.8 ppm,
antimony of 101 and 49 ppm as well as mercury at 27ppm and 14ppm, gallium of
200ppm and 100ppm and cadmium of 2000 ppm and 688ppm.
Your Company has also discovered an extensive zinc-in-soil anomaly on its
prospecting licences in Counties Monaghan and Armagh. This together with very
high zinc levels detected in the old mine working spoil heaps in County Cavan
add to the overall metalliferous potential of your Company's licence area for
both gold and base metals.
Finance
The loss after taxation for the half-year ended 30 November 2013 was ?131,527
(2012: loss of ?197,683) and the net assets as at 30 November 2013 were
?13,224,751 (2012: ?12,555,277).
During the period, a fundraising raised 1,000,000 by way of an equity
subscription and convertible debt issue.
Outlook
Your Company looks forward to continued progress with its planned gold mine at
Clontibret and its ongoing exploration programme for gold and base metals.
Directors and Staff
I would like to thank all of my fellow directors, staff and consultants for
their support and dedication, which has enabled the continued success of the
Company. I look forward to the future with confidence.
Yours faithfully,
Professor Richard Conroy
Chairman
3 February 2014
INCOME STATEMENT
FOR SIX MONTHS ENDED 30 NOVEMBER 2013
Six months Six months Year
ended ended ended
30 November 30 November 31 May
2013 2012 2013
(Unaudited) (Unaudited) (Audited)
? ? ?
OPERATING EXPENSES (125,588) (191,884) (411,020)
Finance income - bank interest 0 0 12
receivable
Finance costs - interest on (5,939) (5,799) (12,971)
shareholder loan
LOSS BEFORE TAXATION (131,527) (197,683) (423,979)
Taxation - - -
LOSS FOR HALF-YEAR (131,527) (197,683) (423,979)
Loss per ordinary share - basic (?0.0004) (?0.0007) (?0.0015)
and diluted
STATEMENT OF COMPREHENSIVE INCOME
FOR SIX MONTHS ENDED 30 NOVEMBER 2013
Six months Six months Year
ended ended ended
30 November 30 November 31 May
2013 2012 2013
(Unaudited) (Unaudited) (Audited)
? ? ?
LOSS FOR PERIOD (131,527) (197,683) (423,979)
Total income and expense - - -
recognised in other comprehensive
income
TOTAL COMPREHENSIVE INCOME FOR THE (131,527) (197,683) (423,979)
PERIOD - ENTIRELY ATTRIBUTABLE TO
EQUITYHOLDERS
STATEMENT OF FINANCIAL POSITION
AS AT 30 NOVEMBER 2013
30 November 30 November 31 May
2013 2012 2013
(Unaudited) (Unaudited) (Audited)
ASSETS ? ? ?
Non-current Assets
Intangible assets 15,302,446 14,226,967 14,824,846
Investment in Subsidiary 2 2 2
Property, plant and equipment 5,363 8,913 7,138
15,307,811 14,235,882 14,831,986
Current Assets
Trade and other receivables 331,616 116,802 163,139
Cash and cash equivalents 19,508 42,768 71,864
351,124 159,570 235,003
Total Assets 15,658,935 14,395,452 15,066,989
EQUITY AND LIABILITIES
Capital and Reserves
Called up share capital 8,936,758 8,112,257 8,737,547
Share premium 7,926,342 7,872,573 7,917,717
Capital conversion reserve fund 30,617 30,617 30,617
Share based payments reserve 1,044,248 955,221 969,735
Retained losses (4,713,214) (4,415,391) (4,581,687)
Total Equity 13,224,751 12,555,277 13,073,929
Non-current Liabilities
Convertible loan 996,075 - -
Financial Liabilities 293,215 994,314 1,045,775
Total Non-current Liabilities 1,289,290 994,314 1,045,775
Current Liabilities
Trade and other payables 1,144,894 845,861 947,285
Total Current Liabilities 1,144,894 845,861 947,285
Total Liabilities 2,434,184 1,840,175 1,993,060
Total Equity and Liabilities 15,658,935 14,395,452 15,066,989
CASH FLOW STATEMENT
FOR THE SIX MONTHS ENDED 30 NOVEMBER 2013
Six months Six months Year
ended ended ended
30 November 30 November 31 May
2013 2012 2013
(Unaudited) (Unaudited) (Audited)
? ? ?
Cash flows from operating activities
Cash (used in)/generated by (86,373) 15,444 (103,587)
operations
Tax paid - - -
Net cash (used in)/generated by (86,373) 15,444 (103,587)
operating activities
Cash flows from investing activities
Investment in exploration and (417,334) (563,515) (1,049,245)
evaluation
Payments to acquire property, plant - - -
and equipment
Net cash used in investing activities (417,334) (563,515) (1,049,245)
Cash flows from financing activities
Issue of share capital 207,836 - 495,037
Advances/(conversion) of shareholder (752,560) 352,192 491,000
loan
Convertible loan 996,075 - -
Bank interest received - - 12
Interest paid on shareholder loan - - -
Net cash generated from financing 451,351 352,192 986,049
activities
(Decrease)/Increase in cash and cash (52,356) (195,879) (166,783)
equivalents
Cash and cash equivalents at 71,864 238,647 238,647
beginning of period
Cash and cash equivalents at end of 19,508 42,768 71,864
period
STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 30 NOVEMBER 2013
Capital
Conversion Share-based Retained
Share Share Reserve Payment Earnings Total
Capital Premium Fund Reserve (Deficit) Equity
? ? ? ? ? ?
At 1 June 2013 8,737,547 7,917,717 30,617 969,735 (4,581,687) 13,073,929
Share issue 199,211 - - - - 199,211
Share premium - 10,457 - - - 10,457
Share issue - (1,832) - - - (1,832)
expenses
Share-based - - - 74,513 - 74,513
payments
Loss for the - - - - (131,527) (131,527)
period
At 30 November 8,936,758 7,926,342 30,617 1,044,248 (4,713,214) 13,224,751
2013
Capital
Conversion Share-based Retained
Share Share Reserve Payment Earnings Total
Capital Premium Fund Reserve (Deficit) Equity
? ? ? ? ? ?
At 1 June 2012 8,112,257 7,872,573 30,617 880,708 (4,217,707) 12,678,448
Share-based - - - 74,513 - 74,513
payments
Loss for the - - - - (197,684) (197,684)
period
At 30 November 8,112,257 7,872,573 30,617 955,221 (4,415,391) 12,555,277
2012
Notes to the Financial Statements
1. Basis of preparation
The half-yearly financial statements have been prepared on the basis of the
recognition and measurement requirements of International Financial Reporting
Standards (IFRS) as adopted by the European Union (EU), and their
interpretations adopted by the International Accounting Standards Board (IASB).
The accounting policies used in the preparation of the half-yearly financial
information are the same as those used in the Company's audited financial
statements for the year ended 31 May 2013.
2. Earnings per share
The calculation of the loss per ordinary share of ?0.0004 (2012 - ?0.0007) is
based on the loss for the financial year of ?131,527 (2012 - ?197,683) and the
weighted average number of ordinary shares in issue during the period of
293,465,001 (2012 - 270,408,542).
Since the Company incurred a loss the effect of share options and warrants
would be anti-dilutive.
3. Dividends
No dividends were paid or are proposed in respect of the six months ended 30
November, 2013.
4. Copies of Accounts
A copy of the Half-Yearly Report will be available on the Company's website
www.conroygold.com and will be available from the Company's registered office,
10 Upper Pembroke Street, Dublin 2.
END