Teknomining Plc
LSE : TEKP

October 31, 2012 12:20 ET

Unaudited Consolidated Interim Results for the six months ended 31 July 2012

                                                                                        31 October 2012



                                                  Teknomining Plc
                                                         
                                         ("Teknomining" or the "Company")
                                                         
                   Unaudited Consolidated Interim Results for the six months ended 31 July 2012


CHIEF EXECUTIVE OFFICER'S STATEMENT

Teknomining Plc and its subsidiary Teknomining Madencilik Insaat Turizm Ithalat Ihracat Sanayi Ve Ticaret Limited
Sirketi ("Turkish Subsidiary"), ("collectively "the Group") are, at present, engaged in the exploration and mining
of mineral resources.

I am pleased to report the company's interim results for the 6 months ended 31 July 2012 and to update you on
company activities since my last report to shareholders.


KEY EVENTS

*   In July the Company concluded an agreement with Asa Sondaj Insaat Ltd Sti for the supply of an All-in
    Mobilization, Equipment Supply, Supervisory, Operational, Security Personnel and Ancillary Services 
    Contract to extract Iron Ore from its Operation Licence Number 200800729 in the Hanza/Kandal region of 
    Kulp, Diyarbakir, Turkey.

*   In  accordance  with the future strategy for Iron Ore production presented at our AGM,  we  scheduled  our
    extraction to commence mid-2012. On August 6th we announced the award of an Iron Ore Extraction contract in respect
    of  the  company's activities on Operation Licence Number 200800729, however, in late October due to unforeseen
    security complications in the Hanza/Kandal area of Kulp and specific areas within the region generally we  have
    suspended extraction operations for health and safety reasons until the security situation stabilises. The Board
    will continue to monitor the security situation and report any further developments likely to have an impact on the
    company's activities.

*   We  are  at present actively searching for secure alternative licence areas in various other locations  in
    Turkey in order to provide an income stream until the current security situation stabilises in this region.
        

OPERATIONS
        
        
*   Following cessation of operations due to unforeseen security complications, in the short term we do not now
    plan to proceed with the extraction of Iron Ore from our Operation Licence Number 200800729 in the Hanza/Kandal
    area of Kulp either by extraction by tonnage by a third party contractor or extraction by Royalty Agreement.

*   We are currently evaluating several licences in various locations as follows;-
        
            - Two Gold/Copper Licences
        
            - One Gold/Silver/Copper/Zinc Licence
            
            - One Chromium Licence
            
            - Three Manganese Licences
            
            - One Manganese/Iron
            
            - Metallurgical Coal Licence
        

        
Michael Holden,
CEO of Teknomining
        



UNAUDITED CONSOLIDATED INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 JULY 2012



Unaudited Consolidated Statement of Comprehensive Income for the period ended 31 July 2012
                                                                                       
                                                                                       
                                                                                       
                                                           Six Months      Six Months           Year
                                             Notes          31-Jul-12       31-Jul-11      31-Jan-12
                                                                 Euro            Euro           Euro
Continuing Operations                                                                  
Revenue                                                             -               -
Other Income                                                        -               -              -
                                                    --------------------------------------------------

Administrative Expenses                                      (93,146)       (131,508)      (425,068)

                                                    --------------------------------------------------

(Loss) before tax                                            (93,146)       (131,508)      (425,068)
                                                                                       
Income tax expense                                                  -               -              -
                                                    --------------------------------------------------
                                                             (93,146)       (131,508)      (425,068)
Other Comprehensive income                                          -               -              -

                                                    --------------------------------------------------
Loss for the period and total                                                                       
comprehensive loss for the period                            (93,146)       (131,508)      (425,068)
                                                    --------------------------------------------------
                                                    --------------------------------------------------
  
Earnings per share (all continuing)                                                    
                                                                                       
Loss per ordinary share - basic & diluted        1                                                  
(cent)                                                       (0.2312)        (0.3300)       (1.0600)
                                                    --------------------------------------------------
                                                    --------------------------------------------------




Unaudited Consolidated Statement of Financial Position                                 
As at 31 July 2012                                                                     
                                                                                       
                                                            31-Jul-12       31-Jul-11      31-Jan-12
                                               Note              Euro            Euro           Euro
                                                                                       
Non Current Assets                               2          1,298,756       1,119,183      1,212,408
                                                                                                    
Current assets                                                                                      
Debtors                                                       159,292         115,475        163,267
Cash and cash equivalents                                     167,536         226,926         22,469
                                                    --------------------------------------------------

Total assets                                                1,625,584       1,461,584      1,398,144
                                                    --------------------------------------------------
                                                    --------------------------------------------------


Equity and liabilities                                                                              
                                                                                             
Equity                                                                                       
"A" Ordinary Share Capital                       3             38,093          38,093         38,093
Ordinary Share Capital                           3             40,250          40,250         40,250
Other Reserves                                                (6,798)         (5,472)        (2,476)
Share Premium - Ord Shares                       3            772,715         772,715        772,715
Retained Earnings                                3          (742,115)       (285,549)      (648,970)
                                                     --------------------------------------------------
 
Equity attributable to the owners of the Company              102,145         560,038        199,612
                                                     --------------------------------------------------
                                                     --------------------------------------------------
                                                         
Current Liabilities                                                                                 
Trade & Other Payables                                      1,523,439         901,546      1,198,532
                                                     --------------------------------------------------
Total liabilities                                           1,523,439         901,546      1,198,532
                                                     --------------------------------------------------
Total equity and liabilities                                1,625,584       1,461,584      1,398,144
                                                     --------------------------------------------------
                                                     --------------------------------------------------


                                                   
Unaudited Consolidated Statement of Changes in Equity                                            
For the period ended 31 July 2012                                                                
                                                                                                 
                                                                                                           
                                                    "A"     Ordinary        Share                          
                                               Ordinary        Share      Premium                          
                                                  Share      Capital   Ord Shares     Retained             
                                                Capital                                 losses        Total
                                                                                                           
                                                   Euro         Euro         Euro         Euro         Euro
                                                                                                           
Balance at 31 January 2011                       38,093       40,000      490,000    (223,901)      344,192
Loss for the Period                                   -            -            -    (425,068)    (425,068)
Other comprehensive loss for the period               -            -            -            -            -
                                                                                                          -
Issue of share capital                                           250      282,715            -      282,965
                                              --------------------------------------------------------------
Balance at 31 January 2012                       38,093       40,250      772,715    (648,969)      202,089
                                              --------------------------------------------------------------

Loss for the Period                                   -            -            -     (93,146)     (93,146)
Other comprehensive loss for the period               -            -            -            -            -

                                              --------------------------------------------------------------
Total Comprehensive loss for the period                                                                    
                                                      -            -            -     (93,146)     (93,146)
                                              --------------------------------------------------------------
                                                                                                          -
Issue of share capital                                -            -            -            -            -
                                              --------------------------------------------------------------
Balance at 31 July 2012                          38,093       40,250      772,715    (742,115)      108,943
                                              -------------------------------------------------------------




Unaudited Consolidated Statement of Cash Flows                                               
For the half year ended 31 July 2012                                                         
                                                                                             
                                                         Half Year to   Half year to         Year to
                                                            31-Jul-12      31-Jul-11       31-Jan-12
                                                                 Euro           Euro            Euro
Cash flows from operating activities                                                         
                                                                                             
(Loss) for the year                                          (93,146)      (131,508)       (425,068)
Adjustments For:                                                                                    
Unrealised Exchange gain/loss                                 (4,322)        (9,313)         (7,037)
Interest Received                                                                                   
Movements in working Capital                                                                        
Decrease/(increase) in trade and other receivables              3,975       (61,407)       (108,479)
(Decrease)/Increase in trade and other payables               324,907        216,706         448,780

                                                         ---------------------------------------------
Cash generated/(used) in operations                           231,415         14,478        (91,804)
                                                                                                    
Interest Paid                                                       -              -               -

                                                         ---------------------------------------------
Net cash (used) in operating activities                       231,415         14,478        (91,804)
                                                         ---------------------------------------------
Cash flows from investing activities                                                                
Interest Received                                                   -              -                
Payments for exploration and evaluation assets               (86,348)      (408,369)       (506,543)

                                                         ---------------------------------------------
Net cash used in investing activities                        (86,348)      (408,369)       (598,347)
                                                         ---------------------------------------------

Cash flows from financing activities
                                                         ---------------------------------------------
Proceeds from issues of equity shares                               -        282,965         282,965
                                                         ---------------------------------------------

                                                         ---------------------------------------------
Net (decrease) / increase in cash and cash                    145,066      (110,926)       (315,382)
equivalents
                                                         ---------------------------------------------

Cash and cash equivalents at the beginning of period           22,470        337,852         337,852

                                                         ---------------------------------------------
                                                         ---------------------------------------------

Cash and cash equivalents at end of period                    167,536        226,926          22,470
                                                         ---------------------------------------------
                                                         ---------------------------------------------


Accounting policies

Basis of Preparation

The financial statements have been prepared on a historical cost basis. The financial statements are presented in
Euro.

Statement of Compliance
    
The consolidated unaudited interim financial statements of Teknomining Plc and its subsidiaries have been prepared
in accordance with International Financial Reporting Standards ('IFRS') as adopted by the European Union ('EU'). In
addition to complying with its legal obligation to comply with IFRS as adopted for use in the EU, the Group has
also complied with IFRS as issued by the International Accounting Standards Board ('IASB').


1. Loss per share                                                                                
                                                                                                 
Basic loss per Ordinary Share amounts are calculated by dividing net loss for                    
the year attributable to ordinary equity holders of the parent by the weighted
average number of Ordinary Shares outstanding during the year.
                                                                                                 
Basic  earnings per share                                                                        

The weighted average number of ordinary shares used in the calculation of basic                  
and diluted earnings per share is
                                                                                                 
                                                                      31-Jul-12      31-Jul-11      31-Jan-11
                                                                           Euro           Euro           Euro

(Loss) for the period attributable to equity holders of the
parent                                                                 (93,146)      (131,508)      (425,068)

                                                                   -------------------------------------------

Weighted average number of ordinary shares for the purposes          40,288,163     40,069,931     33,753,495
of basic earnings per share
                                                                   -------------------------------------------

Basic (loss) per ordinary share (in cent)                                (0.23)         (0.33)         (1.06)
                                                                   -------------------------------------------
                                                                   -------------------------------------------


2. Intangible assets - Exploration and Evaluation Assets                           
                                                                                   
                                                                          Turkey           Total
Cost                                                                        Euro            Euro
                                                                                                
At 31 January 2011                                                       710,814         710,814
Additions                                                                501,594         501,594
                                                                  -------------------------------
At 31 January 2012                                                     1,212,408       1,212,408
Additions                                                                 86,348          86,348
                                                                  -------------------------------
At 31 July  2012                                                       1,298,756       1,298,756
                                                                  -------------------------------
                                                                  -------------------------------

Net book value                                                                                  
At 31 July  2012                                                       1,298,756       1,298,756
                                                                   -------------------------------
                                                                   -------------------------------

At 31 January 2012                                                     1,212,408       1,212,408
                                                                   -------------------------------
                                                                   -------------------------------

Expenditure on exploration activities is deferred on areas of interest until a reasonable
assessment can be determined of the existence or otherwise of economically recoverable reserves.
No amortisation has been charged in the period. The directors have reviewed the carrying value
of the exploration and evaluation assets and consider it to be fairly stated and not impaired at
31 July 2012. The recoverability of the exploration and evaluation assets is dependent on the
successful development or disposal of the Group's licence areas.


3. Share capital - Group and Company                                           31-Jul-12       31-Jan-12
                                                                                    Euro            Euro
Authorised equity                                                                                       
1,000,000,000 Ordinary shares of Euro0.001 each                                1,000,000       1,000,000

50,000 "A" Ordinary of  one euro                                                  50,000          50,000
                                                                             -----------------------------

                                                                               1,050,000       1,000,000
                                                                             -----------------------------
                                                                             -----------------------------

Issued, called up and fully paid:                                                                       
Share                                                           Number of          Share                
                                                                   shares        Capital         Premium
Euro 0.001 Ordinary Shares                                                          Euro            Euro
At 31 January 2010                                                     70              -               -
Issued in period                                               40,000,000         40,000         490,000
                                                             ---------------------------------------------

As at 31 January 2011                                          40,000,070         40,000         490,000
                                                             ---------------------------------------------
                                                             ---------------------------------------------

At 1 February 2011                                             40,000,070         40,000         490,000
Issued in period                                                  250,000            250         282,715
                                                             ---------------------------------------------

As at 31 January 2012                                          40,250,070         40,250         772,715
                                                             ---------------------------------------------
                                                             ---------------------------------------------

At 1 February 2012                                             40,250,070         40,250         772,715
Issued in period                                                        -              -               -
                                                             ---------------------------------------------

As at 31 July 2012                                             40,250,070         40,250         772,715
                                                             ---------------------------------------------
                                                             ---------------------------------------------


Issued, called up and partly paid:                              Number of          Share           Share
                                                                   shares        Capital         Premium
"A" Ordinary Shares of Euro 1 each                                                  Euro            Euro
At 31 January 2010                                                 38,093         38,093               -
Issued in period                                                        -              -               -

                                                             ---------------------------------------------
As at 31 January 2011                                              38,093         38,093               -
                                                             ---------------------------------------------
                                                             --------------------------------------------- 
                                                                                                        
At 1 February 2011                                                 38,093         38,093               -
Issued in period                                                        -              -               -

                                                             ---------------------------------------------
As at 31 January 2012                                              38,093         38,093               -
                                                             ---------------------------------------------
                                                             ---------------------------------------------

At 1 February 2012                                                 38,093         38,093               -
Issued in period                                                        -              -               -

                                                             ---------------------------------------------
As at 31 July 2012                                                 38,093         38,093               -
                                                             ---------------------------------------------
                                                             ---------------------------------------------


"A"  Ordinary  Shares  of Euro 1 each have the right to receive notice of and attend but not  to  vote  at  general
meetings,  no right to a dividend, right to return of capital but no further right to participate in a distribution
of assets of the company.


The directors of the issuer accept responsibility for this announcement.


Contact Details:

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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