Adamus Resources Limited - 2011 Annual Financial Report


PERTH, Western Australia, Sept. 12, 2011 /CNW/ - Adamus Resources Limited ("Adamus" or the "Company") (ASX and TSXV: ADU) advises that it has lodged its Annual Financial Report for the year ended June 30, 2011, as per its Australian regulatory requirements. A copy of the Annual Financial Report can be found on the SEDAR website at

Adamus is starting to see the financial benefits from the commencement of commercial production at its mine in Ghana five months ago. The first quarter of commercial production, commencing 1 April 2011, generated operating cash flows of A$9.2M on commercial gold production of 26,015oz.

Gold production for the financial year ending 30 June 2012 is forecast to be between 100,000 and 105,000 ounces at a forecast cash cost of between US$575 - 600 per oz, indicating ongoing profitable operations.

The 2011 financial year has been a year of transformation for Adamus, with the successful completion of construction and commissioning of the processing plant at the Company's Nzema Gold Project. First gold pour was achieved on 17 January 2011, followed by commencement of commercial production on 1 April 2011.

The successful completion of the project is reflected in the consolidated statement of financial position in the Company's 2011 Annual Financial Report, particularly through the increase in property, plant & equipment of A$69.9M. The drawn Project debt facility of US$60M is also shown in the consolidated statement of financial position, split between current and non current borrowings.

The Group recorded a loss for the 2011 financial year (after providing for income tax) of A$68.0M (2010: A$82.5M loss). This included gross profit of A$9.6M resulting from the first quarter of commercial operations. This was offset by a movement in the non-cash accounting loss on the gold forward hedge contract of A$42.7M (2010: A$76.1M loss) and unrealised foreign exchange ("FX") losses of A$22.1M (2010: A$2.2M profit). FX losses resulted mainly from the revaluation of intercompany loans at balance date. There is currently no intention to seek repayment of the intercompany loans in the short term.

Adamus' Managing Director Mark Connelly said: "At a time of record gold prices, we now look forward to a full year of production for the 2012 financial year."

About Adamus
Adamus Resources is a gold producer, with its key asset located in Ghana, West Africa. The company poured its first gold in January 2011, entered commercial production three months later and is on target is to produce 100,000 ounces of gold annually from its flagship Nzema Gold Project. The project includes open pit mining operations, a processing facility and associated infrastructure to mine and process ore. On current estimates the project has a minimum life of 10 years.

As well as continuing with an extensive exploration program aimed at expanding its operations in Ghana, Adamus is also targeting additional discoveries from its significant landholding in Liberia. Both countries provide a stable, mining-friendly political and economic environment for Adamus to operate.

Adamus is headquartered in Perth, Western Australia. The company is listed on the Australian Securities Exchange, TSX Venture Exchange and Frankfurt Stock Exchange Open Market.

In August 2011 the Company announced its intention to merge with Endeavour Mining Corporation. Endeavour owns the Youga Gold Mine in Burkina Faso, West Africa as well as a pipeline of exploration and development projects in the region. If approved by Adamus and Endeavour shareholders, the merger is likely to take place in December 2011.

Kind regards


Mark Connelly
Managing Director/CEO

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Caution Regarding Forward Looking Information

Certain statements included in this announcement constitute forward-looking information, including, among other things, statements regarding forecasted gold production, and expected cash costs. Forward-looking information is based upon a number of estimates and assumptions made by the Company in light of its experience, current conditions and expectations of future developments, as well as other factors that the Company believes are appropriate in the circumstances. While these estimates and assumptions are considered reasonable by the Company, they are inherently subject to business, economic, competitive, political and social uncertainties and contingencies. Many factors could cause the Company's actual results to differ materially from those expressed or implied in any forward-looking information provided by the Company, or on behalf of, the Company. Such factors include, among other things, risks relating to additional funding requirements, metal prices, exploration, development and operating risks, competition, production risks, regulatory restrictions, including environmental regulation and liability and potential title disputes. Investors are cautioned that forward-looking information is no guarantee of future performance and, accordingly, investors are cautioned not to put undue reliance on forward-looking information due to the inherent uncertainty therein. Forward-looking information is made as at the date of this announcement and the Company disclaims any intent or obligation to update publicly such forward-looking information, whether as a result of new information, future events or results or otherwise.

For further information:

Mark Connelly - Managing Director / CEO
+61 8 9322 5943

For media enquiries contact:

David Ikin - Professional Public Relations
+61 8 9388 0944

Profil de l'entreprise

Adamus Resources Limited

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