GB0003046835/GBP/PLUS-exn
29 May 2009
AGRICOLA RESOURCES PLC
("Agricola" or "the Company")
Final results for the year ended 31 December 2008
CHAIRMAN'S STATEMENT
The Board of Agricola Resources plc ("Agricola") is pleased to report the audited final results
for the year to 31 December 2008, which show a loss for the period of £186,979 (2007 - £115,554).
Agricola is continuing its exploration effort in the Baltic countries, with a major emphasis on
Sweden.
The highlight of 2008 was the reporting on 16 September 2008 of Agricola's maiden Inferred
Resource estimate that was completed to JORC code reporting standard for the Lulepotten copper-
gold deposit on the Ballek Joint Venture project, located in the Norrbotten region of Northern
Sweden. An Inferred Resource of 5.4 Mt@ 0.8% copper and 0.3 grams per tonne gold has been
estimated for this deposit, containing 43,000 tonnes copper metal and 52,000 ounces gold.
On 31 May 2007 Agricola signed a joint venture with Beowulf Mining plc ("Beowulf") under which
Agricola may earn a 51% interest in the Ballek copper-gold-uranium exploration permits that cover
110 square kilometers in the Arjeplog municipality, northern Sweden. To earn this interest the
agreement required Agricola to complete ground geophysics and 3,000 m of diamond drilling on the
Ballek tenements prior to 31 December 2008. Agricola was also granted the option to increase its
equity to 70% through sole funding a further exploration program totalling US$500,000.
On 22 January 2009, the terms of the agreement were revised such that the deadline for the initial
51% interest earn-in was extended to 31 March 2010 and the drilling requirement was increased to
3,200 m. It is intended that Beowulf will incorporate a new subsidiary company to hold the Ballek
exploration permits and that, following completion of the agreed work programme, Agricola will be
given a 51% shareholding in this Company. After completion of the additional US $500,000 work
programme and Agricola attaining a 70% interest, subsequent expenditure on the Ballek exploration
permits would be according to equity, subject to adjustment in the event that one party chooses
not to fund their proportion of such expenditure.
In addition to the uranium interest in the Ballek joint venture Agricola has four additional
licences with uranium interest. They are Geddaur 1, 2 and 3 and Manakjaure No 1, also in northern
Sweden.
The fundamentals for nuclear power have never been stronger and continue to strengthen with more
applications and plans for new nuclear reactors being submitted. From the 439 reactors currently
in operation in 30 countries, significant further capacity is also being created by plant
upgrading and plant life extension programmes.
As I write there are 40 new reactors being built in Russia and South East Asia with another 70 new
plants to be operational within the next 15 years. Indeed the nuclear renaissance is gaining
ground globally with Italy, alongside the UK and Sweden the latest country to come out of the
nuclear thaw by commissioning a new plant to be built by ENEL. In the USA there are applications
for 31 reactors now lodged with the US nuclear regulatory commission. Currently the world mines
only about 60% of the uranium required to power all these plants, with the bulk of the balance
supplied from conversion of former weapons material to nuclear fuel rods (the " Megatons to
Megawatts programme"). The agreement behind this secondary supply of former weapons grade material
expires in 2013 with no clear indication to date that this will extend beyond 2013.
Thus the pressure to discover new uranium deposits is mounting and to quote the World Nuclear
Association 'Between now and 2050 as the world population swells from 6.6 billion toward 9 billion
humankind will consume more energy than the combined total used in all previous history.' It is
widely predicted that if we continue on the current path of fossil fuel dependency the resulting
increase in green house gas emissions will be catastrophic affecting hundreds of millions of
citizens mainly in the developing world.
The current global financial crisis has caused monetary depreciation across almost all asset
classes with U308 spot prices dropping from $70 per lb to a low of $43 over the past year. However
there are signs that some prices may have seen a bottom particularly in the energy sector and the
precious metals complex. The decision by central governments to deploy quantative easing (printing
money) to unblock the global credit log jam will ensure that inflationary pressures will once
again come to the fore in the not too distant future stimulating commodity prices in the energy
sector. An additional positive development is the recent Swedish and German Governments'
announcements indicating a renewed willingness to consider further nuclear power generation:
Agricola with its potential uranium assets is well placed to benefit from any such developments.
On 23 July 2008 the Directors were sad to have to announce the resignation, due to ill health, of
Mr Richard Newstone. Richard is thanked for his significant contribution to the Company over the
past years.
In 2008 confidence has ebbed away in World financial markets as economies moved into recession.
Share and commodity prices have dropped. The future depends on government action to support the
markets. On a more positive note, commentators cite Chinese plans for stimulating growth in its
domestic economy and its earthquake damage reconstruction work, with the consequent impact on its
future copper and iron ore requirements.
The Directors do not recommend the payment of a dividend.
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2008
2008 2007
£ £
TURNOVER - -
Cost of sales 89,278 32,415
GROSS LOSS (89,278) (32,415)
Administrative expenses 110,630 105,175
(199,908) (137,590)
Other operating income 8,632 14,040
OPERATING LOSS (191,276) (123,550)
Interest receivable and similar income 4,432 7,996
(186,844) (115,554)
Interest payable and similar charges 135 -
LOSS ON ORDINARY ACTIVITIES
BEFORE TAXATION (186,979) (115,554)
Tax on loss on ordinary activities - -
LOSS FOR THE FINANCIAL YEAR
AFTER TAXATION (186,979) (115,554)
Earnings per share expressed
in pence per share:
Basic -0.12 -0.08
Diluted -0.09 -0.07
BALANCE SHEET
31 DECEMBER 2008
2008 2007
£ £ £ £
FIXED ASSETS
Intangible assets 250,960 114,758
Tangible assets - 1
250,960 114,759
CURRENT ASSETS
Debtors 51,357 6,254
Investments 447 53,377
Cash at bank 4,965 285,508
56,769 345,139
CREDITORS
Amounts falling due within one year 85,934 51,124
NET CURRENT (LIABILITIES)/ASSETS (29,165) 294,015
TOTAL ASSETS LESS CURRENT
LIABILITIES 221,795 408,774
CAPITAL AND RESERVES
Called up share capital 1,564,555 1,564,555
Share premium 200,252 200,252
Profit and loss account (1,543,012) (1,356,033)
SHAREHOLDERS' FUNDS 221,795 408,774
The above information has been extracted from the audited financial statements of the Company.
The Directors of the Company accept responsibility for the contents of this announcement.
For further information, please contact :
The Company:
Agricola Resources Plc
Dr. Robert Young
Chairman +44 (0)1353 649 379
Corporate Adviser:
St Helen's Capital Plc
Barry Hocken/Duncan Vasey +44 (0)20 7628 5582
Agricola Resources plc