Tertiary Minerals plc
I have pleasure in presenting the Preliminary Results for the fourteen month period ended 30
The period has been one of transition and expansion. The foundations of your Company
were laid five years ago when its subsidiary, Tertiary Gold Limited, was established to
explore for metals in Scandinavia. The incorporation of Tertiary Minerals plc in August 1999
and its subsequent merger with Tertiary Gold were initiated by Tertiary Gold to “convert” to a
public company, to seek a share trading facility for its shareholders and to position the
Company for further growth. This culminated in the admission of Tertiary Minerals to trading
on the Alternative Investment Market (AIM) in November 1999 with admission costs of less
than £87,000; costs which are amongst the lowest in recent record.
The Company‟s strategy is to acquire mineral exploration projects at low cost and with 100%
ownership if possible, to add value to the projects through cost-effective exploration and
ultimately to participate in the financial success of this exploration either through the sale or
joint venture of projects. To date this strategy has been funded through the issue of 11.9
million shares raising a total of £1.2 million of which over £0.7 million remains in hand at the
date of this report.
Since listing, the number of exploration projects in which your Company is involved has been
increased from 6 to 11 and spread geographically to include projects in both Sweden and
Finland. We have conducted exploration work on eight separate projects. Drilling activity has
focused on the Windfall zinc-silver project in south central Sweden where exploration during
the summer has extended the known mineralisation, led to significant advances in the
understanding of its geology and defined additional targets which will be drill tested during
the coming winter.
During the year there were some significant changes in commodity prices. The gold price
has recently declined although other commodities such as the platinum group metals
(“PGM‟s”) and tantalum have seen significant price increases. In the case of the PGM‟s this
is contributed to by increased demand in combination with tight Russian supply. Tantalum on
the other hand, is a rare metal with an increasing market for use in mobile „phones and other
electronic applications. Whilst future commodity prices are difficult to predict, the Company
has taken the prudent step of diversifying its exploration portfolio to include these
Our exploration efforts for tantalum are focused in Finland where we have rights over two
identified tantalum bearing deposits at Rosendal and Viitaniemi, the latter of which is now
being drill tested. We have two PGM projects in Sweden, Kukkola and Flinten, and will
shortly be drilling at Kukkola to test a significant geophysical anomaly. We also have an
active programme to generate new PGM projects.
A number of our grass roots exploration projects have also advanced, especially the Juniper
Ridge project where drilling is now scheduled to test a strong copper-gold geochemical
anomaly found at the Enåsen prospect during the summer.
Your Board has taken the initiative to improve on the minimum reporting requirements of
AIM. In addition to reporting significant results as they are received, your Company reports
more detailed information on a quarterly basis. All relevant reports, press releases and
Company information is available on the Company‟s website at www.tertiaryminerals.com.
It remains for me to thank all those current and past Directors and all of the Company‟s
advisers, staff and consultants who have contributed to the success of the Company to date.
In particular I wish to thank former Director Karen Cheetham for her contribution to the
development of the Company from 1986 until its admission to AIM.
Your Company is now well positioned for further growth with a strong and diversified
exploration portfolio and the Board and management skills required to capitalise on this to
the benefit of all shareholders.
I look forward to reporting further progress over the coming year.
Patrick L. Cheetham
Executive Chairman Dated: 1 December 2000