Chairman's Statement 2000
The unfavourable markets and financial conditions for the mineral industry, and in
particular small companies, have continued during the past year. Anglesey Mining has
weathered these problems better than most, thanks to a supportive major shareholder and
loyal staff. However real progress in the development of the group’s properties has
been hampered.
Expenses have been kept to a bare minimum. We have been able to pursue the investigation
of new opportunities for the group away from Parys Mountain and we are cautiously
optimistic that one of these new developments will become an active project in the coming
year. The financial results for the year show a loss of £164,184 up from £111,465 the
previous year, principally as the result of higher interest charges of £50,948, almost
double the previous year, and increased expenditures on new project investigation and
evaluation.
Parys Mountain
Work has been very limited in the year but continues to demonstrate the excellent
potential of the property for further significant discoveries as well as extensions to the
existing reserves. An airborne survey was conducted over Parys Mountain by the National
Remote Sensing Centre as part of its own research programme and may provide some useful
indicators for future development. A review and compilation of all the geological studies
carried out on the property over the last four years was completed and the target areas
for the identification of new reserves confirmed. The planned drilling programme of 10,000
metres of surface core drilling in ten to fifteen holes remains, in our view, the best way
to add value to the existing space. This planned programme is budgeted to cost about
£500,000 and would last at least one year. This programme requires new funding.
For some years the company has supported the activities of the Amlwch Industrial Heritage
Trust which has among its objectives the conservation and study of Parys Mountain. The
Trust has installed a new car park and viewing platform at the mine for visitors to the
old workings and has obtained funding for significant improvements to the site. It has
also opened some of the 19th century underground workings. The company encourages and
supports these endeavours by the Trust. At all stages the work of the Trust has been
planned with the expectation of a modern mine being constructed on the site; the
management of both the company and the Trust are confident that the co-existence of new
mining operations and the conservation and enjoyment of the features remaining from a
previous mining era, is entirely feasible and desirable.
Dolaucothi
One hole was drilled at the Dolaucothi property to follow up the encouraging results
received last year but with inconclusive results.
At the end of the year Dr. Alwyn Annels of the Department of Earth Sciences at the
University of Cardiff retired from his position as senior lecturer. As director of the
University’s research and training programme at Dolaucothi, Alwyn was principally
responsible for the development of the Dolaucothi project, both as to its historical,
scientific and potential mining importance. We are deeply grateful to Alwyn for all the
work he has carried out at Dolaucothi over many years and wish him a happy retirement.
Fortunately, he will continue to be involved and available at Dolaucothi as an advisor.
New Projects
During the past year the group reviewed the Bula zinc deposit in Ireland which had been
placed on the market by its bankers. The deposit is immediately adjacent to Europe’s
largest zinc mine at Tara. Initial indications were encouraging and confirmed that the
Bula deposit could be developed as a small independent mine. However, a resumption of the
protracted litigation which has surrounded the Bula deposit has delayed completion of a
sale. We will continue to monitor the situation.
We also evaluated a number of other projects in the mineral business as well as a number
of opportunities presented to us from the ‘new technology’ sector. While a
number of these situations remain under review no specific transactions have been
concluded.
Outlook
It has always been the objective of management to develop the Parys Mountain property into
a producing mine and to acquire, explore and develop other properties. There have been
great difficulties associated with doing this over the past few years, not least among
which is the reluctance of shareholders and financial markets generally, to invest in
small mineral companies - thus starving companies like Anglesey of the funds required to
carry projects forward. Against this background and to assist in the evaluation of new
opportunities, the directors have appointed Ermgassen & Co. to advise the group on the
identification and acquisition of new ventures.
In order to provide the group with the flexibility to move quickly to take advantage of
any new opportunities which may become available, it is proposed to put resolutions to the
forthcoming annual general meeting which will increase the authorised but unissued share
capital and increase the authority of the directors to issue shares. More information
concerning these resolutions is contained in the directors’ report. I urge you to
support them.
Finally, I am sorry to have to advise that Lord Crickhowell has decided to retire as a
director of Anglesey at the forthcoming annual meeting. Lord Crickhowell has been a
director since the company was floated in 1988 and his contribution over the last twelve
years has been significant. Far from being just a name on the masthead he has been very
much involved in the affairs of the group and his advice will be missed. We thank him for
his efforts and wish him well.
Anglesey Mining has been fortunate to have been supported ‘above and beyond the call
of duty’ by its directors, staff, advisors, consultants and major shareholders and I
would like to thank them for their support.
John F. Kearney Chairman 3 August 2000