Teknomining Plc

June 29, 2012 03:00 ET

Teknomining Plc - Unaudited Consolidated Preliminary Financial Statements for the year ended 31 January 2012

                                                   Teknomining PLC
                                   ("Teknomining" or the "Company" or the "Group")

                               Unaudited consolidated preliminary financial statements
                                             Year ended 31 January 2012

Chief Executive Officers Report
For the year ended 31st January 2012

Dear Shareholders,

I am delighted to present the Second Chief Executives Report of Teknomining Plc.

The  Company  has  had  an  eventful second year and I would like to highlight some of  the  operational  milestones

    *The  securing  of  a drilling contract to undertake an exploration drilling program in the company's  operation
     licence areas in the Diyarbakir region, Eastern Anatolia, Turkey.
    *Issuing  an independent report on the Geophysical Magnetic and Induced Polarisation (IP) survey carried out  on
     operational Licence area reference number 200806366 confirming the possible presence of massive sulphide type
     copper and  high grade magnetite anomalies. The report suggested the initiation of a targeted drilling campaign
     at recommended grid locations, to more definitively prove certain anomalies and which the company is  currently
     undertaking. The company subsequently completed 90% of the access road structure including drainage excavation,
     despite unusually difficult winter and spring weather conditions, now focusing on the recommended test drilling
    *Test drilling campaign started in spring 2011.
    *Completion of a share placing in July 2011 raising approximately GBP250,000.
    *Test drilling completed to date and independently analysed show the presence of commercial grades of Nickel/Cobalt
     with an average grade of Nickel greater than 2200ppm (0.22%).
    *Consistent existence of traces of Nickel, Cobalt, Copper, Chromium, Iron, Magnesium, Manganese, Titanium, and Zinc
     in all of the five test drill holes analysed.
    *Copper found at depths of 60m, 110m, 120m and 140m.indicate Mineralization lenses related with a possible Porphyry
     Body at deeper levels.
    *The  company was awarded full rights to three additional exploration licences covering an area of 54.07 km  sq.
     located in Kulp, Diyarbakir, Turkey. The three additional exploration licences with a total area of 5,407
     hectares (reference numbers 201100324, 201100325 and 201100406) further enhance the Company's footprint covering  
     a total area of 6,497 hectares (64.97km sq.) and enable the Company to take full advantage of further
     opportunities that lie in the Diyarbakir region of Eastern Turkey.
    *The three additional licences cover exploration rights over Group IV (Four) Minerals which include Industrial and
     Metallic Minerals as set out under Turkish mining laws and are located beside the Company's two current           
     operational licences which are located in the Diyarbakir region of eastern Turkey.
    *The  three  additional exploration licences takes the total number of licences under management to five  -  two
     operation licences and three exploration licences.
    *A Deep IP/Resistivity and Ground Magnetic Report on licence area 200806366 produced in October 2011 indicates the
     presence of a possible porphyry anomaly with an estimated size of 48 million m3.

    *A Deep IP/Resistivity and Ground Magnetic Report on licence area 200800729 produced in October 2011 indicates the
     presence of possible quartz porphyry and or intrusive anomalies containing possible sulphide mineralization with
     an estimated size of 604 million m3.
    *Five major Geophysical Induced Polarisation (IP)/Resistivity and Magnetic Surveys completed.
    In  accordance with the future strategy for Iron Ore production presented at our AGM, we  have now scheduled our
    extraction  to  commence within the next month. Confirmation of the commencement will be announced  as  soon  as
    We  continue  to  review  the  various options open to the company to fund the  proposed  extraction  activities
    including but not necessarily limited to the following financing options:
    *Extraction Royalty Agreement-

    *Third Party Contractor Tonnage Extraction Agreement.-

    *Extraction directly by Teknomining personnel.

    We  have now obtained the following state and local permissions to allow the extraction of Iron Ore and Chromium
    from Hanza licence 200800729.
    *Forestry Permission approved 2011.
    *Teias (State Electricity Board) permission from the transmission and operation group Directorate granted 2012.
    *GSM licence by the Governor's office provincial special administration granted 2012. This permits the Company to
     extract and sell Group IV (Four) Minerals including Iron.

    *Environmental Impact assessment certificate granted 2012.
    *State Hydraulic Department permission approved 2012.
    *Non-Hygienic commercial establishment workplace opining and operating licence for opencast mining over area of
     21.68 Hectares granted 2012.
I  am  sure you will agree that our second year of activity has been memorable in all respects and our successes  to
date provide the company with a platform for further development and for the creation of additional value for all of
our loyal shareholders.

I  would  like  to thank our shareholders for their ongoing support and patience. I would also like  to  express  my
gratitude  to  our financial, corporate, legal, and public relations advisors and to my fellow directors  for  their
exceptional contribution to the company in the last year.

I look forward to the coming year with confidence and in anticipation of ongoing success and to bringing you ongoing
updates on the further development and growth of your company.

Yours sincerely

Michael Holden
Chief Executive Officer

Unaudited Consolidated Statement of Comprehensive Income
for the year end 31 January 2012

                                                                                 Unaudited                  Audited
                                                                                   Year To                  Year To
                                                                           31 January 2012          31 January 2011
Continuing Operations                            Note                                 Euro                     Euro

Turnover                                                                                 -                        -
Administrative expenses                                                           (425,068)                (223,902)
                                                                                 _________                _________
Loss for the year before tax                                                      (425,068)                (223,902)

Income tax expense                                                                       -                        -
                                                                                 _________                _________
Loss for the year from continuing operations                                      (425,068)                (223,902)
                                                                                 _________                _________

Other comprehensive income                                                               -                        -
                                                                                 _________                _________
Total Comprehensive Loss for the year                                             (425,068)                (223,902)
                                                                                 _________                _________

Loss attributable to the Owners of the Company                                    (425,068)                (223,902)
                                                                                 _________                _________
                                                                                  (425,068)                (223,902)
                                                                                 _________                _________
Earnings per share from continuing operations:
Basic and diluted loss per ordinary share (cent)               1                     (1.06)                   (0.66)
                                                                                 _________                _________

Unaudited Consolidated Statement of Financial Position
as at 31 January 2012
                                                                           31 January 2012          31 January 2011
                                                                                      Euro                     Euro

Non-Current Assets
Intangible assets                                                                1,212,408                  705,864

Current Assets
Trade and other receivables                                                        163,267                   54,788
Cash and cash equivalents                                                           22,469                  337,852
                                                                                 _________                _________
Total Current Assets                                                               185,736                  392,640
                                                                                 _________                _________
Total Assets                                                                     1,398,144                1,098,504
                                                                                 _________                _________
Equity and Liabilities

Capital and Reserves
Issued capital                                                                      78,343                   78,093
Share premium account                                                              772,715                  490,000
Other reserves                                                                      (2,476)                   4,561
Retained loss                                                                     (648,970)                (223,902)
                                                                                 _________                _________
Equity Attributable to owners of the company                                       199,612                  348,752
                                                                                 _________                _________

Current Liabilities
Trade and other payables                                                         1,198,532                  749,752
                                                                                 _________                _________
Total Liabilities                                                                1,198,532                  749,752
                                                                                 _________                _________

Total Equity and Liabilities                                                     1,398,144                1,098,504
                                                                                 _________                _________

Unaudited Consolidated Statement of Changes in Equity
for the year ended 31 January 2012

                                     Share        Share    "A" Ordinary     Retained         Other
                                   Capital      Premium   Share Capital       Losses      Reserves        Total
                                      Euro         Euro            Euro         Euro          Euro         Euro

Balance at 1 February 2010               -            -               -            -             -            -
Loss for the year                        -            -               -     (223,902)            -     (223,902)
Proceeds of share issue             40,000      490,000          38,093            -             -      568,093
Effects of Currency fluctuations         -            -               -            -         4,561        4,561
                                 _________    _________       _________    _________     _________    _________
Balance at 31 January 2011          40,000      490,000          38,093     (223,902)        4,561      348,752

Balance at 1 February 2011          40,000      490,000          38,093     (223,902)        4,561      348,752
Loss for the year                        -            -               -     (425,068)            -     (425,068)
Proceeds of share issue                250      282,715               -            -             -      282,965
Effects of Currency fluctuations         -            -               -            -        (7,037)      (7,037)
                                 _________    _________       _________    _________     _________    _________
Balance at 31 January 2012          40,250      772,715          38,093     (648,970)       (2,476)     199,612
                                 _________    _________       _________    _________     _________    _________

The  financial information set out above does not constitute the group's statutory accounts for the year ended
31  January 2012 but is derived from those accounts. Statutory returns for the year ended 31 January 2011 have
been  delivered  to the Registrar of Companies and those for 31 January 2012 will be delivered  following  the
groups  annual  general meeting. The financial information has not been audited but has been reviewed  by  the
auditors who have not issued any report on the accounts.

Unaudited Consolidated Statement of Cash Flows
for the year ended 31 January 2012

                                                                          31 January 2012          31 January 2011
                                                                                     Euro                     Euro

Cash flows from operating activities

Loss for the year before taxation                                                 (425,068)                (223,902)
Currency Translation                                                                (7,037)                   4,561
                                                                                  ________                 ________
                                                                                  (432,105)                (219,341)

Movements in working capital
(Increase) in trade and other receivables                                         (108,479)                 (54,788)
Increase in trade and other payables                                               448,780                  749,752
                                                                                 _________                _________
Net cash generated from operating activities                                       (91,804)                 475,623

Cash flows from financing activities
Proceeds of issue of share capital                                                 282,965                  568,093
                                                                                 _________                _________
Cash flows from investing activities
Expenditure on intangible assets                                                  (506,544)                (705,864)
                                                                                 _________                _________
Net cash used in investing activities                                             (506,544)                (705,864)

Net Increase in cash and cash equivalents                                         (315,383)                 337,852
Cash and Cash Equivalents at beginning of year                                     337,852                        -
                                                                                 _________                _________
Cash and cash equivalents at end of year                                            22,469                  337,852
                                                                                 _________                _________

Notes to the unaudited financial statements
for the year ended 31 January 2012

1.    Loss per share

Basic earnings per share
The weighted average number of ordinary shares used in the calculation of basic and diluted earnings per share is
as follows:
                                                                           31 January 2012          31 January 2011
                                                                                      Euro                     Euro

Loss for the year                                                                 (425,068)                (223,902)
                                                                                 _________                _________

Weighted average number of ordinary shares for the purposes of
calculation of basic earnings per share
                                                                                40,179,944               33,753,495
                                                                                 _________                _________
Basic loss per ordinary share (in cent)                                              (1.06)                   (0.66)
                                                                                 _________                _________

Diluted earnings per share
Diluted  loss per share is the same as basic loss per share as there are no diluting instruments that would  convert
to Ordinary Shares.

2.     Going Concern

The  financial statements have been prepared on the going concern basis, which assumes that Teknomining Plc will
continue in operational existence for the foreseeable future.

In  order  to  fund the work programme and to enable the Group and Company to meet its financial obligations  as
they  fall due during the next twelve months, the Directors intend to issue new share capital to investors. This
additional  finance  will be used to continue the identification and development of projects  and  to  fund  the
administrative expenses of the Company.

The  financial  statements do not include any adjustments that would result if the additional finance  from  the
issuing of share capital is not raised. Whilst taking into consideration the uncertainties described above,  the
Directors believe that it is appropriate for the financial statements to be prepared on a going concern basis.

                    The directors of the issuer accept responsibility for this announcement.

For further information please contact:

Teknomining Plc
Michael Holden, Managing Director
Mob. Ireland: +353 87 249 10 22
Mob. Turkey: +90 534 295 82 61
Email: Teknomining@gmail.com
Website: www.teknomining.com

LHM Casey McGrath
Con Casey, Corporate Adviser
Phone: +353 1 495 9200
Email: Con.casey@lhmcaseymcgrath.ie

Contact Information

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