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
achieved:
*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
campaign.
*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
practicable.
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
Assets
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
_________ _________
Liabilities
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