Half-yearly Report
28/02/2013 07:00
28 February 2013
Karelian Diamond Resources plc
("Karelian" or "the Company")
Half-yearly results for the six months ended 30 November 2012
FURTHER ENCOURAGING RESULTS FROM DIAMOND EXPLORATION PROGRAMME IN FINLAND
Karelian Diamond Resources plc (AIM: KDR; ESM: KDR.I), the diamond exploration
company focused on Finland, announces its results for the six months ended 30
November 2012.
Highlights:
* Further microdiamonds identified in Seitaper pipe
* Additional diamondiferous indicator minerals discovered in Riihivaara
* Applications made for further licences in Finland
Professor Richard Conroy, Chairman, said:
"The results of your Company's exploration programme in Finland continue to
encourage us to believe that diamond discoveries could be made in the Finnish
sector of the Karelian Craton comparable to the world class diamond deposits in
the Russian sector of the Craton."
Further Information:
Professor Richard Conroy, Chairman/ Karelian Diamond Tel: +353-1-661-8958
Resources plc
Simon Clements/Virginia Bull/ Merchant Securities Limited Tel:
(Nomad) +44-20-7628-2200
Jon Belliss/XCAP Securities PLC (Broker) Tel:
+44-20-7101-7070
Brian Farrell/IBI Corporate Finance Limited (ESM Adviser) Tel +353-766-234-800
Michael Padley/Michael Spriggs/ Lothbury Financial Tel:
Services +44-20-7868-2567
Don Hall/ Hall Communications Tel: +353-1-660-9377
Visit the website at: www.kareliandiamondresources.com
CHAIRMAN'S STATEMENT
Dear Shareholder,
I have great pleasure in presenting your Company's Interim Report for the six
months ended 30 November 2012, a period of continued progress for your Company.
The recovery of microdiamonds in the mantle xenolith identified during this
year's drilling confirmed that the xenolith encountered was diamondiferous. It
is a further indication of the diamond potential of the Seitaper
diamondiferous kimberlite pipe, which at 6.9 hectares is the largest known
kimberlite pipe discovered to date in Finland.
The microdiamonds most recently identified in your Company's Seitaper pipe are
white in colour, transparent and octahedral. The broken nature of the
microdiamond suggests the possibility of larger stone sizes. This is of
relevance both in the exploration of the pipe and its diamond and economic
potential.
These results, in conjunction with the discovery by your Company of
diamondiferous indicator minerals during a sampling programme at nearby
Riihivaara, indicate that there is more than one source of diamonds in the
Kuhmo area and enhances the overall diamond potential of the area in which they
are located. Applications for further exploration licences in the area have
therefore been made.
Work has continued on the integration of the extensive database made available
to your the Company under its agreement with Rio Tinto arising from this,
applications have been made for additional exploration licences outside the
Kuhmo area in this highly exciting Finnish region of the Karelian Craton.
Karelian's exploration programme in Finland is based on the existence in
Finland of similar geology to that in the Russian sector of the Karelian Craton
in which two world class diamond discoveries have been made - Lomonosov and the
Grib Diamond Pipe and it is your Company's aim to make a similar large scale
diamond discovery in Finland.
Finance
The results for the six months ended 30 November 2012 are set out below. The
loss for the period was ?72,545 (2011: loss ?84,691). The net assets of the
Company at 30 November 2012 were ?4,491,981 (2011: ?4,609,197).
Outlook
Karelian looks forward to further progress with the diamond interest in Finland
and continues to review other opportunities that may arise.
Directors and Staff
I would like to thank 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
28 February 2013
INCOME STATEMENT
FOR HALF-YEAR ENDED 30 NOVEMBER 2012
Six months Six months Year ended
ended ended
30 November 30 November 31 May
2012 2011 2012
(Unaudited) (Unaudited) (Audited)
? ? ?
OPERATING EXPENSES (65,531) (77,907) (194,582)
Finance income - bank interest - 5 97
receivable
Finance costs - interest on (7,014) (6,790) (13,495)
shareholder loan
LOSS BEFORE TAXATION (72,545) (84,692) (207,980)
Taxation - - -
LOSS FOR THE YEAR (72,545) (84,692) (207,980)
Loss per ordinary share - basic (?0.0008) (?0.0009) (?0.0023)
and diluted
STATEMENT OF COMPREHENSIVE INCOME
FOR HALF-YEAR ENDED 30 NOVEMBER 2012
Six months Six months Year ended
ended ended
30 November 30 November 31 May
2012 2011 2012
(Unaudited) (Unaudited) (Audited)
? ? ?
LOSS FOR PERIOD (72,545) (84,692) (207,980)
Total income and expense - - -
recognised in other comprehensive
income
TOTAL COMPREHENSIVE INCOME FOR THE (72,545) (84,692) (207,980)
PERIOD - ENTIRELY ATTRIBUTABLE TO
EQUITYHOLDERS
STATEMENT OF FINANCIAL POSITION
AS AT 30 NOVEMBER 2012
30 November 30 November 31 May
2012 2011 2012
(Unaudited) (Unaudited) (Audited)
ASSETS ? ? ?
Non-current Assets
Intangible assets 6,581,906 6,154,525 6,390,694
Investment in Subsidiary 4 4 4
Property, plant and equipment 417 585 501
6,582,327 6,155,114 6,391,199
Current Assets
Trade and other receivables 43,574 8,551 47,382
Cash and cash equivalents 24,282 203,917 10,054
67,856 212,468 57,436
Total Assets 6,650,183 6,367,582 6,448,635
EQUITY AND LIABILITIES
Capital and Reserves
Called up share capital 922,083 922,083 922,083
Share premium 4,621,158 4,621,158 4,621,158
Share based payments reserve 412,598 333,981 375,039
Retained losses (1,463,858) (1,268,025) (1,391,313)
Total Equity 4,491,981 4,609,197 4,526,967
Non-current Liabilities
Financial Liabilities 1,107,283 812,665 1,007,214
Total Non-current Liabilities 1,107,283 812,665 1,007,214
Current Liabilities
Trade and other payables 1,050,919 945,720 914,454
Total Current Liabilities 1,050,919 945,720 914,454
Total Liabilities 2,158,202 1,758,385 1,921,668
Total Equity and Liabilities 6,650,183 6,367,582 6,448,635
STATEMENT OF CHANGES IN EQUITY
FOR THE HALF-YEAR ENDED 30 NOVEMBER 2012
Share-based Retained
Share Share Payment Earnings Total
Capital Premium Reserve (Deficit) Equity
? ? ? ? ?
At 1 June 2012 922,083 4,621,158 375,039 (1,391,313) 4,526,967
Share-based payments - - 37,559 - 37,559
Loss for the period - - - (72,545) (72,545)
At 30 November 2012 922,083 4,621,158 412,598 (1,463,858) 4,491,981
Share-based Retained
Share Share Payment Earnings Total
Capital Premium Reserve (Deficit) Equity
? ? ? ? ?
At 1 June 2011 922,083 4,261,158 292,921 (1,183,333) 4,652,829
Share issue - - - - -
Share premium - - - - -
Share-based payments - - 41,060 - 41,060
Loss for the period - - - (84,692) (84,692)
At 30 November 2011 922,083 4,621,158 333,981 (1,268,025) 4,609,197
CASH FLOW STATEMENT
FOR THE HALF-YEAR ENDED 30 NOVEMBER 2012
Six months Six months Year ended
ended ended
30 November 30 November 31 May
2012 2011 2012
(Unaudited) (Unaudited) (Audited)
? ? ?
Cash flows from operating activities
Cash generated/(used in) by operations 74,703 (56,031) (58,631)
Tax paid - - -
Net cash generated by/(used in) 74,703 (56,031) (58,631)
operating activities
Cash flows from investing activities
Investment in exploration and (160,544) (360,965) (509,687)
evaluation
Net cash used in investing activities (160,544) (360,965) (509,687)
Cash flows from financing activities
Issue of share capital - - -
Advances of shareholder loan 100,069 - -
Repayment of shareholder loan - (125,000) (125,000)
Bank interest received - 5 97
Interest paid on shareholder loan - - (42,633)
Net cash (used in)/generated from 100,069 (124,995) (167,536)
financing activities
(Decrease)/Increase in cash and cash (14,228) (541,991) (735,854)
equivalents
Cash and cash equivalents at beginning 10,054 745,908 745,908
of period
Cash and cash equivalents at end of 24,282 203,917 10,054
period
NOTES TO THE FINANCIAL STATEMENTS
FOR THE HALF-YEAR ENDED 30 NOVEMBER 2012
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 2012.
2. Earnings per share
The calculation of the loss per ordinary share of ?0.0008 (2011 - ?0.0009) is
based on the loss for the financial year of ?72,545 (2011 - ?84,692) and the
weighted average number of ordinary shares in issue during the year of
92,208,342 (2011 - 92,208,342).
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 period ended 30
November, 2012.
4. Copy of half yearly report
A copy of the half yearly report will be available on the Company's website
www.kareliandiamondresources.com and will be available from the Company's
registered office, 10 Upper Pembroke Street, Dublin 2.
END