| Tue 22 Sep 2009, 15:00 | | BRE - Braemore Resources Plc - Trading Statement |
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BRE
BRE
BRE - Braemore Resources Plc - Trading Statement
BRAEMORE RESOURCES PLC
(A company incorporated in England and Wales with Registration
Number 5350550)
(South African registration number: 2008/013973/10)
Share code on the JSE Limited: BRE
Share code on AIM: BRR ISIN: GB00B06GJQ01
("Braemore" or "the Company")
- Trading Statement
In terms of the Listing Requirements of JSE Limited, a listed
company is required to publish a trading statement as soon as it
becomes reasonably certain that the financial results for the
period to be reported on will vary by more than 20% from that of
the previous corresponding period.
Shareholders of Braemore are advised that the Company expects its
loss per share and headline loss per share for the year ending 30
June 2009 to be 0.94p loss per share, based on an expected after-
tax loss for the period under review of approximately GBP7.4m,
as opposed to a loss per share of 0.21p, based an after-tax loss
of GBP1.408 million, in the corresponding period to 30 June 2008.
The loss per share and headline loss per share for the half year
period that ended 31 December 2008 was 0.56p (loss after tax of
GBP4.4m).
Specific events that contributed to the increase in the basic and
headline loss include:
* the shutdown and commissioning of the expanded demonstration
smelter;
* the conclusion of various smelter trials to demonstrate and
prove the robustness of the Con-Roast process;
* a subsequent brief shutdown with a minor smelter runout;
* sharp falls in metal prices during the first half of the
year with only a modest recovery during the latter part of
the year;
* the sharp appreciation in the Rand / US $ exchange rate in a
period of flat platinum group metal prices, which resulted
in the smelter margin contracting;
* the smelter being put on temporary shutdown upon the
conclusion of the development programme; and
* merger activity and associated legal and compliance
expenses;
* Costs and associated legal and compliance expenditure
incurred on the listing of Braemore on the JSE;
* The finalisation and conclusion of old order smelting
contracts.
During this period Braemore has advanced the development of the
ConRoast process with the conclusion of development work on both
the smelting and refining processes.
Braemore has also advanced the restructuring of the Company ahead
of the merger with Jubilee Platinum plc ("Jubilee") to realise a
significant reduction in overhead costs which will flow through
into the next reporting period. The cash position of the Company
as at the end of the period was GBP0.30 million, excluding PGM
concentrate and smelted alloy inventory valued at GBP0.90
million. In addition, as part of the merger with Jubilee, and
as previously announced, the Company entered into an
implementation agreement with Jubilee on 3 July 2009, whereby
Jubilee made available to Braemore a working capital facility
whilst the merger is being implemented.
Braemore has also just successfully fully contracted the
demonstration facility which is in the process of being re-
commissioned under a smelting agreement.
The financial information on which this trading statement is
based has not been reviewed or reported on by Braemore`s external
auditors.The Company`s results for the year ended 30 June 2009
will be published on 30 September 2009.
22 September 2009
Sponsor
Sasfin Capital
(A division of Sasfin Bank Limited)
Date: 22/09/2009 15:00:02 Produced by the JSE SENS Department.
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