Proactive investorsLogo Proactive Investors UK Website

Search field

1 year chart

digital-look imported chart image

1 day chart

digital-look imported chart image
Epic & Msn data
Epic LRL
Time: 13:54:23
Mid Price: 11.25
Change Today: 0.00
Change % Today: 0.00
Fifty Two Week High: 11.40
Fifty Two Week Low: 3.00
Market Capital: 24.55
Period & price data
Period Price
Now: 11.25
3 Months ago:
6 Months ago:
1 Year ago:
Additional information
Additional Information
Market: AIM
Sector: General Mining - Gold
Epic: LRL
News: Latest news
Web Site: Leyshon Resources
Other Articles: 22-09-200917-09-200930-04-2009

Leyshon Resources

Leyshon Resources has a proud history as one of Australia’s most financially successful gold mining companies having produced over 2.7 million ounces from its Mt Leyshon Gold Mine in Queensland and distributed over A$300 million dollars to its shareholders over its 15 year life. Today Leyshon has divested its Australian mining and exploration interests and is focused on the  Zheng Guang project in Heilongjiang, northeast China.  Zheng Guang has estimated the resource of 1.21 million ounces of gold, 94,000 tonnes of zinc and 3.72 million ounces of silver.

The company forecasts annual revenues of 90 mln usd from the project at current metal prices, and EBITDA of 54 mln usd on cash operating costs of some 155 usd per ounce.
Monday, March 16, 2009

Leyshon Resources slash losses but may sell Zheng Guang gold project

company news image

The half-yearly report from Leyshon Resource, published this morning, clearly demonstrates the effect of the company’s response to current adverse market conditions. The loss for the half year to December 2008 was almost half of that incurred for the previous comparable period – at AU$2,950,192 vs. AU$5,751,338 in December 2007. This has been achieved through the deferral of much major expenditure at the Zheng Guang gold project until after the Chinese winter season, and a careful pruning of all outgoings leading to a significant monthly reduction in spend. The result is a comfortable bank balance of AU$5.7 million.

During the half year under review, a 6,840 metre drilling programme was carried out at Zheng Guang, targeting extensions to the Main Ore Zone to both north and south, along with further testing of the Zheng Guang North prospect. Whilst the results were encouraging, further drilling is required to upgrade the current resource estimates. The access road was successfully completed and project earthworks begun before the company decided to shut down site-based activities for the winter, and the land acquisition programme has also been brought to a successful conclusion. The Land Acquisition Plan is presently with the Department of Land and Resources, and once it has been approved, Project Registration and the issue of the Mining Licence are expected to follow in 2009.

However, as announced earlier, the company require finance to make further progress at Zheng Guang. To make this less of a burden, a detailed review of the mine engineering design has been carried out over the winter, working with the Changchun Design Institute, to reduce the costs of bringing Zheng Guang into production.  

In the meantime, Leyshon have been reviewing their options for Zheng Guang, and say that whilst interest in funding the project after all approvals have been granted remains, given the current financial climate such funding may not be forthcoming on acceptable terms, if at all. Thus they have also been pursuing other avenues for the realisation of value from Zheng Guang, which include the sale of their interest in the project, and negotiations with a number of parties are currently in progress under confidentiality agreements.

NewsNow icon AddThis Feed Button
Register here to be notified of future Leyshon Resources articles.

Other Leyshon Resources articles

More articles ►

Other Leyshon Resources news

More news ►

Investors interested in Leyshon Resources recently viewed


No investment advice

The Company is a publisher and is not registered with or authorised by the Financial Services Authority (FSA). You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.