Adamus Resources Limited - 2011 Annual Financial Report
PERTH, Western Australia, Sept. 12, 2011 /CNW/ --
/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED STATES/
PERTH, Western Australia, Sept. 12, 2011 /CNW/ - Adamus Resources
Limited ('Adamus' or the 'Company') (ASX and TSXV: ADU) advises that it
has lodged its Annual Financial Report for the year ended June 30,
2011, as per its Australian regulatory requirements. A copy of the
Annual Financial Report can be found on the SEDAR website at www.sedar.com.
Adamus is starting to see the financial benefits from the commencement
of commercial production at its mine in Ghana five months ago. The
first quarter of commercial production, commencing 1 April 2011,
generated operating cash flows of A$9.2M on commercial gold production
of 26,015oz.
Gold production for the financial year ending 30 June 2012 is forecast
to be between 100,000 and 105,000 ounces at a forecast cash cost of
between US$575 - 600 per oz, indicating ongoing profitable operations.
The 2011 financial year has been a year of transformation for Adamus,
with the successful completion of construction and commissioning of the
processing plant at the Company's Nzema Gold Project. First gold pour
was achieved on 17 January 2011, followed by commencement of commercial
production on 1 April 2011.
The successful completion of the project is reflected in the
consolidated statement of financial position in the Company's 2011
Annual Financial Report, particularly through the increase in property,
plant & equipment of A$69.9M. The drawn Project debt facility of US$60M
is also shown in the consolidated statement of financial position,
split between current and non current borrowings.
The Group recorded a loss for the 2011 financial year (after providing
for income tax) of A$68.0M (2010: A$82.5M loss). This included gross
profit of A$9.6M resulting from the first quarter of commercial
operations. This was offset by a movement in the non-cash accounting
loss on the gold forward hedge contract of A$42.7M (2010: A$76.1M loss)
and unrealised foreign exchange ('FX') losses of A$22.1M (2010: A$2.2M
profit). FX losses resulted mainly from the revaluation of intercompany
loans at balance date. There is currently no intention to seek
repayment of the intercompany loans in the short term.
Adamus' Managing Director Mark Connelly said: 'At a time of record gold
prices, we now look forward to a full year of production for the 2012
financial year.'
About Adamus
Adamus Resources is a gold producer, with its key asset located in
Ghana, West Africa. The company poured its first gold in January 2011,
entered commercial production three months later and is on target is to
produce 100,000 ounces of gold annually from its flagship Nzema Gold
Project. The project includes open pit mining operations, a processing
facility and associated infrastructure to mine and process ore. On
current estimates the project has a minimum life of 10 years.
As well as continuing with an extensive exploration program aimed at
expanding its operations in Ghana, Adamus is also targeting additional
discoveries from its significant landholding in Liberia. Both countries
provide a stable, mining-friendly political and economic environment
for Adamus to operate.
Adamus is headquartered in Perth, Western Australia. The company is
listed on the Australian Securities Exchange, TSX Venture Exchange and
Frankfurt Stock Exchange Open Market.
In August 2011 the Company announced its intention to merge with
Endeavour Mining Corporation. Endeavour owns the Youga Gold Mine in
Burkina Faso, West Africa as well as a pipeline of exploration and
development projects in the region. If approved by Adamus and Endeavour
shareholders, the merger is likely to take place in December 2011.
Kind regards
ADAMUS RESOURCES LIMITED
'signed'
Mark Connelly
Managing Director/CEO
Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
Caution Regarding Forward Looking Information
Certain statements included in this announcement constitute
forward-looking information, including, among other things, statements
regarding forecasted gold production, and expected cash costs.
Forward-looking information is based upon a number of estimates and
assumptions made by the Company in light of its experience, current
conditions and expectations of future developments, as well as other
factors that the Company believes are appropriate in the circumstances.
While these estimates and assumptions are considered reasonable by the
Company, they are inherently subject to business, economic,
competitive, political and social uncertainties and contingencies. Many
factors could cause the Company's actual results to differ materially
from those expressed or implied in any forward-looking information
provided by the Company, or on behalf of, the Company. Such factors
include, among other things, risks relating to additional funding
requirements, metal prices, exploration, development and operating
risks, competition, production risks, regulatory restrictions,
including environmental regulation and liability and potential title
disputes. Investors are cautioned that forward-looking information is
no guarantee of future performance and, accordingly, investors are
cautioned not to put undue reliance on forward-looking information due
to the inherent uncertainty therein. Forward-looking information is
made as at the date of this announcement and the Company disclaims any
intent or obligation to update publicly such forward-looking
information, whether as a result of new information, future events or
results or otherwise.
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Mark Connelly - Managing Director / CEO
61 8 9322 5943
email: info@adamusresources.com.au
For media enquiries contact:
David Ikin - Professional Public Relations
61 8 9388 0944
email: david.ikin@ppr.com.au