CHAIRMAN'S STATEMENT
The Board of Agricola Resources PLC ("Agricola") is pleased to report the audited final results to the year to 31 December 2007, which show a loss for the period of £115,554 (2006:£271,131). Agricola is continuing its exploration effort in the Baltic countries of Sweden and Finland, with a major emphasis on Sweden.
2007 saw an exceptional run-up in the price of uranium that peaked at US138/lb. It was only natural that the market should calm at the end of 2007 with prices settling to a more sustainable US60-90/lb range. However there are an overwhelming number of factors that yet point to a sustained growth in the importance that uranium and nuclear power will play in the world's energy future.
The UK government has finally backed Britain's nuclear energy industry by sanctioning the construction of six nuclear reactors set to be operational by 2020 in a move to secure our energy supplies and tackle climate change: its government has already pledged to cut carbon emissions to 20% below 1997 levels and by a massive 60% by 2050.
The French company Areva, the world's largest builder of nuclear reactors, forecasts that between 150-300 nuclear reactors will be built around the world from now to 2030, with at least 50 of them in India and China. This is supported by current figures supplied by the World Nuclear Association who states that 158 reactors were proposed in 2007 with 28 in the process of being built and 64 expected to begin construction soon. In contrast the primary supply of uranium continues to be unpredictable with difficulties and problems being experienced by operating mines and with other delays from mines currently under construction, thus ensuring that future uranium demand will accelerate at a faster rate than supply. In the view of your directors the current lull in the uranium market cannot continue indefinitely and presents opportunities and an entry point for investors not yet aboard this long-term uranium bull.
On 3 May 2007 Agricola placed 46,780,000 ordinary shares of 1p each in the capital of the Company to Energy Ventures Limited ("EVE", an Australian Securities Exchange listed Company). This equalled 29.9% of the Company's enlarged share capital. On 26 July 2007 Agricola shareholders approved the grant of options to EVE to subscribe for an additional 46,780,000 unlisted options exercisable at 1p per share within 18 months of the agreement. On 2 August 2007 Dr. Frazer Tabeart joined Agricola's Board as a Non-Executive Director representing EVE's interest.
On 31 May 2007 Agricola signed a joint venture with Beowulf Mining PLC ("Beowulf") under which Agricola may earn a 51% interest in the Ballek copper-gold-uranium exploration permits that cover 110 square kilometers in the Arjeplog municipality, northern Sweden. To earn this interest Agricola must complete ground geophysics and 3,000m of diamond drilling on the Ballek tenements prior to 31 December 2008. Agricola can increase its equity to 70% through sole funding a further exploration program totalling US$500,000.
On the 20 February 2008 the Board appointed Gregory ("Bill") Fry to the Board, and Dr Jan Ola Larsson stepped down as a director of the Company but continues to work for Agricola in Sweden. The Board thanks Dr Larsson for his contribution as a Director of the Company.
The Ballek Project comprises four exploration permits. It occurs at the intersection of two major fault systems, a WNW trending continental-scale lineament and a NNE trending major fault. A large gravity anomaly occurs in the Ballek Project area. There is a known uranium occurrence, Rebraur Vastra, in the NW tenement. Previous work by the Geological Survey of Sweden ("SGU") identified copper-gold mineralisation in the western part of the project. On the basis of the presence of a large gravity anomaly, large magnetic anomaly and the presence of copper, gold and uranium mineralisation, it is considered that this project has potential for iron-oxide, copper-gold (IOCG ) mineralisation.
Agricola has two project areas in northern Sweden, Geddaur and Manakjaure, which are 100% owned. The Geddaur Uranium Project consists of three exploration permits, which cover 117 square kilometers. The Manakjaure Uranium Project comprises one granted exploration permit covering 5.5 square kilometers.
The proceeds of the Energy Venture placement will be used to fast-track exploration at the Ballek joint venture and the Gedduar and Mannakjaure Uranium Projects. Agricola further exposed itself to nickel exploration by securing of the Riikalahti 1 permit. Agricola already owns the Kläppsjö 1 permit which is prospective for nickel.
In Finland there are three Prospecting Licence applications forming the 3 sq km Kuusjarvi Uranium Project in central Finland.
Agricola's Directors will work hard during the remainder of 2008 to increase the value of its exploration and development assets and will report regularly on the very active exploration programme currently underway in Sweden.
The Directors do not recommend the payment of a dividend.
Profit & Loss account - Year ended 31st December 2007
|
|
2007
GBP
|
2006
GBP
|
| Turnover |
--
|
--
|
|
Cost of sales
|
(32,610)
|
(185,476)
|
|
________
|
________
|
| GROSS LOSS |
(32,610)
|
(185,476)
|
| Administrative Expenses |
(90,940)
|
(88,277)
|
|
________
|
________
|
|
|
|
| Operating Loss |
(123,550)
|
(273,753)
|
.
|
|
|
| Investment Income |
7,996
|
2,622
|
|
________
|
________
|
|
|
|
| Loss on ordinary activities before taxation |
(115,554)
|
(271,131)
|
| Tax on Profit on Ordinary Activities |
--
|
--
|
|
________
|
________
|
|
|
|
| LOSS FOR THE FINANCIAL YEAR |
(115,554)
|
(271,131)
|
|
|
________
|
________
|
|
|
|
| Loss per share (pence) |
0.08
|
0.25
|
|
________
|
________
|
| Diluted loss per share (pence) |
0.07
|
0.25
|
Balance Sheet at 31st December 2007
|
|
2007
GBP
|
2006
GBP
|
| FIXED ASSETS |
|
|
| Intangible Assets |
114,758
|
1,536
|
| Tangible Assets |
1
|
195
|
|
________
|
________
|
|
114,759
|
1,731
|
|
|
|
| CURRENT ASSETS |
|
|
| Debtors |
6,254
|
-
|
| Investments |
53,377
|
53,377
|
| Cash at Bank |
285,508
|
89,172
|
|
________
|
________
|
| . |
345,139
|
142,549
|
|
|
|
| Creditors: amounts falling due within one year |
(51,124)
|
(16,006)
|
|
________
|
________
|
| NET CURRENT ASSETS |
294,015
|
126,543
|
|
________
|
________
|
| TOTAL ASSETS LESS LIABILITIES |
408,774
|
128,274
|
|
________
|
________
|
|
|
|
| NET CURRENT ASSETS |
294,015
|
126,543
|
|
________
|
________
|
| TOTAL ASSETS LESS CURRENT LIABILITIES |
408,774
|
128,274
|
|
________
|
________
|
|
|
|
| CAPITAL AND RESERVES |
|
|
| Called up share capital |
1,564,555
|
1,096,755
|
| Share Premium Account |
200,252
|
271,998
|
| Profit & Loss Account |
(1,356,033)
|
(1,240,479)
|
|
________
|
________
|
| EQUITY SHAREHOLDERS' FUNDS |
408,774
|
128,274
|
The above figures have been extracted from the full audited information from the financial statements of the Company.
For further information contact :
Agricola Resources Plc
Dr. Robert Young
Chairman
+44 (0)1353 649 379
Coporate Adviser:
St Helen's Capital Plc
Barry Hocken/Duncan Vasey
+44 (0)20 7628 5582
|
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