Energem - Results for third quarter ended September 30, 2007, Dual Listing on AIM and relinquishment of Central African Republic exploration rights



    TSX: ENM

    VANCOUVER, Nov. 14 /CNW/ - Energem Resources Inc ("Energem" or "the
Company") announced its financial results for its third quarter ended
September 30, 2007. The abridged consolidated results are set out below.

    
                                 --------------------------------------------
                                       3 months ended         9 months ended
                                 --------------------------------------------
                                  Sept. 30  August 31    Sept. 30  August 31
    ($-US Dollar)                     2007       2006        2007       2006
                                     $'000      $'000       $'000      $'000
                                    -------    -------     -------    -------
    SALES                           18 450    232 037      45 049    576 946
    -------------------------------------------------------------------------
    EARNINGS/(LOSS)
     BEFORE ABNORMAL ITEM              825     (3 764)    (11 929)   (12 004)
    ABNORMAL WRITE OFF/(INCOME)    (15 313)    15 015     (15 313)    15 015
    -------------------------------------------------------------------------
    NET (LOSS)/PROFIT
     FOR THE PERIOD                (14 488)    11 251     (27 242)     3 011
    -------------------------------------------------------------------------
    NUMBER OF COMMON
     SHARES IN ISSUE ('000)                               174 883    156 089
    (LOSS) PER SHARE
     (BASIC AND DILUTED) (*)                              $ (0.16)   $ (0.02)

    (*) based on weighted average number of shares in issue.
    

    ACTIVITIES IN THE THIRD QUARTER

    The company continued to profitably operate its mid-stream operations in
Nigeria and Malawi and has completed the consolidation of its bio-fuels
division, incorporating the Kenyan Kisumu ethanol plant and recently acquired
jatropha oil seed operations in Mocambique under a single management headed by
newly appointed CEO Bio-fuels, Tom Swithenbank.
    Development and expansion of the jatropha operation has continued
steadily and the ethanol plant has continued to operate profitably during the
quarter, despite continuing feedstock shortages limiting sales and production
to approximately 45% of plant capacity. The Company is considering means for
supplementing the molasses feedstock supply to this plant, including the
potential use of alternate types of feedstock.
    The Company is continuing to seek suitable acquisitions for the potential
expansion of the oil seed growing element of the bio-fuels division and is
actively pursuing the fast tracking expansion of operations in Mocambique.
    The recently acquired Chinese Methanol blending operation in Beijing
China has continued to implement the roll out of its manufacturing and sales
strategy. Repairs to the mid-stream oil Nigerian refined oil storage and
distribution facility following a fire there in March 2007 are near completion
and the plant is expected to be able to return to full capacity throughput
thereafter and within the fourth quarter, 2007. Despite having only
approximately 50% available capacity since the fire, the facility has traded
profitably and is distributing cash to the Company after fully servicing its
project finance facility. Business interruption insurance cover claims are
being met by insurers in respect of the third quarter and cash receipts from
insurers are being paid to the operation following an exclusion period in
accordance with the insurance policy which applied to the second quarter.
    The Company's logistics division, in addition to continuing to provide
the Company's travel and logistical services, continued to trade profitably
with third parties. The supply of Chinese sourced mine pumps and pump spares
to mines in Central and Southern Africa has continued to expand modestly on
the back of what appears to be a sustainable revival of the mining industry,
particularly in the copper belt of the Democratic Republic of Congo and
Zambia.
    A 2D seismic evaluation of the Company's remaining up-stream oil asset in
Chad has been commissioned to supplement existing geological data available in
respect of this asset. Third party contractors have been appointed to conduct
this evaluation which is scheduled to start in the fourth quarter, 2007.
    The disposal of elements of non-core assets, which commenced in the
second quarter, was concluded during the third quarter resulting in an inflow
of cash of $34 million which has been used to settle debt amounting to a net
$10 million and fund new projects. All convertible debenture loan notes issued
in 2004 have been cash settled without any element of conversion to equity in
the company. Apart from the Nigerian facility project finance, which is being
met from that operation's cash flow, the Company has become relatively debt
free.
    Whilst all the basic commissioned core assets of the Company have and are
continuing to improve and are all operating with increasing operational
profitability, the Company has incurred a net loss of $14.5 million for the
quarter after writing off the $15.3 million in respect of the CAR asset.
Accumulated losses for the nine months ended September 2007 have consequently
increased from $12.8 million at the end of the second quarter to $27.3 million
at September 30, 2007.
    Despite the fundamental soundness and inherent value in the assets
Energem has retained and acquired in 2007 as part of its strategic redirection
and focus on bio-fuels and mid-stream oil which became more clearly the
Company's future direction in 2007, the share price has continued
disappointingly to trade at a considerable discount to net asset value.

    DUAL LISTING ON AIM AND TSX

    The Company is in the process of applying for the listing of its common
shares on the London Stock Exchanges Alternate Investment Market (AIM). This
process is well advanced and the Company is expected to be admitted to the AIM
list in November, 2007.

    ABNORMAL WRITE OFF - RELINQUISHMENT OF RIGHTS TO ALLUVIAL DIAMOND
EXPLORATION ASSET IN THE CENTRAL AFRICAN REPUBLIC

    The Company has recently resolved to relinquish its rights to alluvial
diamond mining exploration rights in the Central African Republic (CAR) and
this has resulted in a write off of the assets $15.3 million balance sheet
carrying value which has been accounted for in the third quarter, 2007. The
continuation of this exploration no longer fits with the strategic direction
the Company has adopted and terms, satisfactory to the Company, for the
continuation of these rights could not be agreed. The write off has no cash
affect on the Company. The abnormal income included in the 2006 comparative
related to unrealised income arising from the deconsolidation and adjustment
to fair value of the Company's interest in then subsidiary FirstAfrica Oil
plc, disposed of in 2007.

    USE OF ESTIMATES

    In arriving at certain values contained in its consolidated financial
statements the Company relies upon use of certain estimates and assumptions.
Actual results upon ultimate realization of value may differ.

    COMPARATIVE NUMBERS

    In 2006 the Company changed its financial year end from November 30 to
December 31 and reported results at December 31, 2006 for a thirteen month
period. Comparative numbers in these interim financial statements reflect
quarterly periods ended as reported for 2006. As the Company's business is not
subject to any significant seasonal or date related fluctuations, quarterly
comparisons on this basis are considered appropriate.
    The Company's interim consolidated financial statements and management
discussion and analysis for the quarter ended September 30, 2007 are available
on SEDAR at www.sedar.com under the Company symbol "ENM".

    Energem Resources Inc. is an Africa focused company listed on the Toronto
Stock Exchange and the holding company of a group of companies engaged in,
mainly, several African countries in the bio-fuels, oil and related sectors
including logistics and supply to the mining industry in South and Central
Africa and development of an up-stream oil exploration asset. The company has
offices and/or logistics and support infrastructure in Johannesburg, London,
Beijing and a number of African countries.

    %SEDAR: 00002462E




For further information:

For further information: Rob Rainey in Johannesburg at telephone +27 11
372-3300, Fax +27 11 454-1673, or email: info@energem.com; Refer our website:
www.energem.com

Organization Profile

ENERGEM RESOURCES INC.

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