Annual Report 2009
The directors are pleased to submit their annual report and audited accounts for the year ended 30 September 2009.
Principal Activities The principal activity of the Company is the identification, acquisition, exploration and development of diamond and other mineral projects. The principal area of activity during the year was Finland, but since the end of the reporting period the Company has expanded its exploration activities geographically to include Australia and the Republic of Ireland.
Business Review and Future Developments The Chairman’s Statement together with the Operating Review and the Financial & Risk Review provide detailed information on the development of the Company’s business during the year and indications of likely future developments.
Dividend The directors are unable to recommend the payment of any ordinary dividend.
Going Concern In common with many exploration companies, the Company raises finance for its exploration and appraisal activities
in discrete tranches, as and when required. When any of the Company’s projects move to the development stage, specific project financing will be required.
The directors prepare annual budgets and cash flow projections that extend beyond 12 months from the date of this report. These projections include the proceeds of future fundraising and planned discretionary project expenditures necessary to maintain the Company as a going concern. Although the Company has been successful in raising finance in the past, there is no assurance that it will obtain adequate finance in the future. However, the directors have a reasonable expectation that they will secure additional funding when required to continue meeting corporate overheads and exploration costs for the foreseeable future and therefore believe that the “going concern” basis is appropriate for the preparation of the financial statements.
Results The Company’s loss for the period was £227,563 (2008: £634,880).
Financial Instruments & Other Risks The business of mineral exploration and evaluation has inherent risks. Details of the Company’s Financial Instruments and risk management objectives and of the Company’s exposure to risk associated with its Financial Instruments is given in note 20 to the financial statements.
Details of risks and uncertainties that affect the Company’s business are given in the Financial & Risk Review on pages 7 to 8.
Directors The directors holding office in the period were:
Mr P L Cheetham Mr F P H Johnstone Mr N L Herbert