Latest Results
Unaudited Interim Results
I am pleased to announce the results of the Company for the six months ended 31 March 2010, a period during which the Company made further progress towards our aim of becoming an integrated fluorspar business. As well as adding more licences the market for Mongolian fluorspar has also improved due to China restricting its exports of fluorspar. This has given a boost to the Mongolian producers and means that there is a ready-made market particularly in Europe and India.
During the period Lotus acquired a further mining licence, Tsagaan Chuluut, for US$70,000, and has also acquired the 49% holding in Lotus Dai Uul LLC it did not already own for $100,000. We are currently progressing the mining licence on this property. In addition during the period Lotus has acquired a further 15% interest in Lotus Bayalag Fluorite LLC for US$15,000,
At Tsagaan Chuluut the estimate for the mineralization contained in the licence area, based on historic data, is 167,400 tonnes down to 90m depth and is classified as category C2 under the Russian reporting system. The grade ranges from 30.5% to 55.2% CaF2 and averages 45.79% CaF2.
The Company made a loss before tax of (£334,826) for the six months ended 31 March 2010 (six months ended 31 March 2009: Loss (£174,651)). During the course of the year the Company has invested in our exploration and mining licences in Mongolia and also in investigating potential mining investments in Mongolia. At 31 March 2010 the Company had cash balances of £552,617, due in the main to a £ 500,000 secured convertible loan note. The loan note is specifically to acquire plant and equipment to develop the Company's fluorspar assets.
On 8 December the Company entered into an agreement with Habsburg & Partner Advisory AG ("Habsburg") to raise £150,000. Habsburg has failed to meet the conditions under the agreement and on 16 February 2010 a settlement was agreed allowing the Company to place 4,260,553 shares held by Habsburg at 2.13 pence per share. The placing proceeds of approximately £91,000 (gross) were paid to the Company in full and final settlement of all sums due from Habsburg & Partner Advisory AG. As a result, during the period, the Company has raised £ 348,000 through the issue of ordinary shares.
The Directors believe that Lotus is now in a position to start the development of the assets acquired and to take advantage of the strengthening market. To this end the Company is in discussions with several international companies regarding long term supply agreements. However, as we have previously indicated, additional funds are required to develop these opportunities. With sufficient funding the opportunities to develop the assets and to become a successful integrated fluorspar operation are very real and the Board are currently looking at the various available options. In the absence of such funding, the Board will have to consider all alternative arrangements regarding the future of its operations.
Simon Longworth
Chief Executive
29 June 2010
Consolidated Income statement
| Unaudited 6 months to 31 March 2010 |
Unaudited 6 months to 31 March 2009 |
|
| £ | £ | |
| Continuing operations | ||
| Revenue | - | - |
| Administrative expenses | (327,321) | (176,601) |
| Loss from operations | (327,321) | (176,601) |
| Investment income | 56 | 1,950 |
| Finance costs | (7,561) | - |
| Loss before income tax | (334,826) | (174,651) |
| Income tax expense | - | - |
| Loss for the period/year | (334,826) | (174,651) |
| Other comprehensive income | ||
| Exchange differences arising on translation of foreign operations |
(24,018) | 5,565 |
| Total comprehensive loss for the period/year | (358,844) | (166,086) |
| Total comprehensive loss for the period/year | ||
| attributable to: | ||
| Equity holders of the Company | (358,844) | (166,086) |
| Minority interests | - | - |
| (358,844) | (166,086) | |
| Loss for the period/year attributable to: | ||
| Equity holders of the Company | (334,826) | (174,651) |
| Minority interests | - | - |
| (334,826) | (174,651) | |
| Loss per share | ||
| Basic (pence per share) | (0.55) | (0.43) |
| Diluted (pence per share) | (0.55) | (0.43) |
Consolidated Balance Sheet
| Unaudited 31 March 2010 |
Unaudited 31 March 2009 |
|
| £ | £ | |
| CURRENT ASSETS | ||
| Non-current assets | ||
| Intangible Assets | 273,393 | - |
| Property , plant and equipment | 23,522 | 13,884 |
| 296,915 | 13,884 | |
| Current assets | ||
| Trade and other receivables | 110,890 | 54,247 |
| Cash & cash equivalents | 552,617 | 152,581 |
| 663,507 | 206,828 | |
| Total assets | 960,422 | 220,712 |
| EQUITY AND LIABILITIES | ||
| Equity attributable to equity holders of the company |
||
| Called up share capital | 720,736 | 409,841 |
| Share premium account | 758,037 | 504,443 |
| Equity component of convertible secured loan notes |
13,446 | - |
| Accumulated losses | (1,277,003) | (722,572) |
| Foreign currency translation reserve | (24,018) | |
| 191,198 | 191,712 | |
| Non-controlling interests | 53,999 | - |
| Total equity | 245,197 | 191,712 |
| Current liabilities | ||
| Trade & other payables | 236,101 | 29,000 |
| Non-current liabilities | ||
| Convertible secured loan notes | 479,124 | - |
| Total equity and liabilities | 960,422 | 220,712 |
These financial statements were approved by the board on 29th June 2010
The financial information for the periods ended 31 March 2010 and 31 March 2009 has not been audited or reviewed by the Company's auditors and does not constitute statutory accounts.
The Group's 2009 Financial Statements were prepared and audited under International Financial Reporting Standards and International Standards on Auditing (UK and Ireland) respectively
The directors of the company accept responsibility for this announcement.