TIDMALBA
RNS Number : 7993M
Alba Mineral Resources PLC
21 July 2014
ALBA MINERAL RESOURCES PLC
HALF-YEARLY UNAUDITED RESULTS
FOR THE SIX MONTHS ENDED 31 MAY 2014
CHAIRMAN'S STATEMENT
Introduction
Alba Mineral Resources plc ("Alba" or the "Company" and
collectively with its subsidiary companies "the Group") holds
mineral properties and projects in Mauritania (uranium) and Ireland
(base-metals).
Results for the Period
The Group made a loss attributable to equity holders of the
parent for the period, after taxation, of GBP64,648. The basic and
diluted loss per share was 0.02 pence.
Review of Activities
Ireland
After the period end, Teck Ireland Limited ("Teck") gave notice
of its withdrawal from the exploration option and joint venture
agreement ("JV") with Alba.
The Board believes there is merit in retaining the licence even
though the JV has been dissolved and at this time the licence is in
good standing.
Mauritania
The Group holds one exploration permit, No 1328, in northern
Mauritania for uranium and radioactive materials. The permit covers
an area of 545 km(2) and lies within the eastern half of a former
permit where we had previously announced several uranium anomalies.
The Board continues to review exploration models on the permit area
and is considering its options with regards to funding the next
stage of exploration.
Fund Raising
On 4 March 2014 the Group successfully completed a fund raising
of GBP230,718 (before expenses) through the subscription of
92,287,300 ordinary shares at a subscription price of 0.25 pence
per share. These funds will be used to provide working capital,
develop the Group's asset portfolio and investigate further
opportunities. The Company also created and issued new warrants to
subscribe for 66,143,650 ordinary shares. The new warrants are
exercisable at a price of 0.3 pence per share at any time between
(i) the date falling 12 months from 27 March 2014 and (ii) the date
falling 7 years after admission of the trading of the shares on
AIM.
On 29 May 2014 Group raised a further GBP60,000 through the
subscription of 24,000,000 new ordinary shares at a price of 0.25
pence per ordinary share. The Company also created and issued new
warrants to subscribe for 12,000,000 ordinary shares. The new
warrants are exercisable at a price of 0.3 pence per share at any
time between (i) the date falling 12 months from 28 May 2014 and
(ii) the date falling 7 years after admission of the trading of the
shares on AIM.
Post Period End
After the period end the Company announced that it has signed a
binding Heads of Agreement with Horse Hill Developments Ltd
("HHDL") for Alba to invest in a UK onshore oil and gas project.
The Horse Hill-1 well, which is scheduled to be completed by the
end of August 2014, is planned to test several conventional stacked
oil and gas targets in the proven productive Portland Sandstone,
Corallian Sandstone and Great Oolite Limestone levels in the
well-defined Horse Hill prospect in the Weald Basin situated in
Surrey, England.
Alba has a binding agreement in place to acquire a 5% interest
in HHDL, a special purpose company, which has the right to acquire
a 65% participating interest and operatorship of Petroleum
Exploration and Development Licence No. 137 ("PEDL 137"). The total
consideration payable by the Company is GBP300,000. An initial
non-refundable deposit of GBP10,000 is payable upon signing, with
completion subject to the execution of definitive documentation
which the parties are in the process of finalising. Upon
completion, Alba will make a further payment of GBP40,000, with the
balance of GBP250,000 payable in line with the cash calls required
for the drilling of the well.
The 99.29 square kilometres (24,535 acre) PEDL 137 licence, held
by a subsidiary of Magellan Petroleum Corporation, is located in
the Weald Basin in Surrey. The Horse Hill prospect lies about 3
kilometres from Gatwick Airport and covers an area of up to 16
square kilometres in the south-west of PEDL 137. The Collendean
Farm-1 well was drilled by Esso in 1964 on the north-eastern edge
of the Horse Hill structure and found good oil shows.
The participants in the Horse Hill-1 well are HHDL as operator
with a 65% farm in interest and Magellan Petroleum Corporation with
a 35% interest. HHDL has the right to earn the 65% participating
interest in PEDL 137 by completing the proposed well at the
property.
Site construction and preparatory operations have now commenced
on the Horse Hill site, in preparation for the drilling of the
proposed 2,594 metre (8,512 feet) Horse Hill-1 well. The well is
targeting a number of conventional stacked oil and gas targets.
Outlook
The fresh injection of capital now gives us the opportunity to
develop and enhance the Group's project portfolio.
George Frangeskides
21 July 2014
Chairman
For further information please visit the Company's website,
www.albamineralresources.com or contact:
Alba Mineral Resources plc George Frangeskides, Chairman Tel: +44 (0) 20 7907 9328
Mike Nott, CEO
Northland Capital Partners Ltd Matthew Johnson Tel: +44 (0) 20 7382 1100
Gavin Burnell
UNAUDITED CONSOLIDATED INCOME STATEMENT
FOR THE SIX MONTHS ENDED 31 MAY 2014
Unaudited Unaudited Audited
6 mths ended 6 mths ended Year ended
31 May 2014 31 May 2013 30 Nov 2013
GBP GBP GBP
Revenue - - -
Cost of sales - - -
------------ ------------ -----------
Gross profit - - -
Administrative expenses (65,826) (25,762) (85,023)
Exceptional items - - 592,688
------------------------------------------------- ------------ ------------ -----------
Administrative expenses (65,826) (25,762) 507,665
------------ ------------ -----------
Operating (loss)/profit (65,826) (25,762) 507,665
Finance costs (9) (8,232) (8,232)
------------ ------------ -----------
(Loss)/profit before taxation (65,835) (33,994) 499,433
Taxation (note 3) - - -
------------ ------------ -----------
(Loss)/profit for the period (65,835) (33,994) 499,433
============ ============ ===========
Attributable to:
Equity holders of the parent (64,648) (33,965) 497,680
Minority interest (1,187) (29) 1,753
------------ ------------ -----------
(Loss)/profit for the period (65,835) (33,994) 499,433
============ ============ ===========
(Loss)/earnings per ordinary 0.1p share (note 5)
- basic and diluted (0.02) pence (0.02) pence 0.31 pence
UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 MAY 2014
Unaudited Unaudited Audited
31 May 2014 31 May 2013 30 Nov 2013
GBP GBP GBP
Non-current assets
Intangible assets - deferred exploration costs 611,646 664,412 605,956
611,646 664,412 605,956
----------- ----------- -----------
Current assets
Trade and other receivables 25,650 100,989 21,300
Cash and cash equivalents 220,794 3,942 216
----------- ----------- -----------
246,444 104,931 21,516
----------- ----------- -----------
Total assets 858,090 769,343 627,472
=========== =========== ===========
Current liabilities
Trade and other payables (62,819) (818,477) (61,164)
Borrowings (251,024) (374,259) (233,823)
Total liabilities (313,843) (1,192,736) (294,987)
=========== =========== ===========
Net assets 544,247 (423,393) 332,485
=========== =========== ===========
Equity
Share capital 1,169,255 989,401 1,052,968
Share premium account 1,429,229 1,138,701 1,268,834
Merger reserve 200,000 200,000 200,000
Other reserve 140,400 110,734 139,485
Profit and loss account (2,422,940) (2,889,937) (2,358,292)
----------- ----------- -----------
Equity attributable to equity holders of the parent 515,944 (451,101) 302,995
Minority interest 28,303 27,708 29,490
Total equity 544,247 (423,393) 332,485
=========== =========== ===========
UNAUDITED CONSOLIDATED CASH FLOW STATEMENT
FOR THE SIX MONTHS ENDED 31 MAY 2014
Unaudited Unaudited Audited
6 mths ended 6 mths ended Year ended
31 May 2014 31 May 2013 30 Nov 2013
GBP GBP GBP
Net cash (used in)/generated from operating activities (81,651) 8,595 (37,828)
Investing activities
Purchase of intangible assets (5,690) (19,447) (7,518)
Net cash used in investing activities (5,690) (19,447) (7,518)
============ ============ ===========
Financing activities
Proceeds from issue of shares 290,718 18,000 22,000
Funds from/(repayment of) borrowings 17,201 (3,768) 23,000
Net cash generated from financing activities 307,919 14,232 45,000
============ ============ ===========
Net increase/(decrease) in cash and cash equivalents 220,578 3,380 (346)
Cash and cash equivalents at the beginning of the period 216 562 562
Cash and cash equivalents at the end of the period 220,794 3,942 216
============ ============ ===========
Operating (loss)/profit (65,826) (25,762) 507,665
Foreign exchange revaluation adjustment 915 (59,679) (32,139)
(Increase)/decrease in trade and other receivables (4,350) 10,305 2,690
(Decrease)/increase in trade and other payables (12,390) 83,731 (516,044)
Net cash (used in)/generated from operating activities (81,651) 8,595 (37,828)
============ ============ ===========
NOTES TO THE HALF-YEARLY FINANCIAL INFORMATION
1. Basis of preparation
The Group consolidates the financial statements of the Company
and its subsidiary undertakings.
The financial information has been prepared under the historical
cost convention in accordance with International Financial
Reporting Standards (IFRSs). The financial information set out in
this half-yearly report does not constitute statutory accounts as
defined in Section 434 of the Companies Act 2006. The same
accounting policies, presentation and methods of computation are
followed in this interim condensed consolidated report as were
applied in the Group's annual financial statements for the year
ended 30 November 2013. The auditor's report on those financial
statements was unqualified and did not contain any statements under
section 498(2) or section 498(3) of the Companies Act 2006. The
auditor's report for the year ended 30 November 2013 did include
emphasis of matter paragraphs relating to the uncertainty as to
whether the Group can raise sufficient funds to continue to develop
the Group's exploration assets.
2. Going Concern
After making enquiries, the directors have a reasonable
expectation that the Group has adequate resources to meet its
current committed expenditure and recurring outgoings for the
foreseeable future, although the funding is not sufficient to
continue to develop the Group's exploration assets, the directors
continue to adopt the going concern basis of accounting in
preparing the financial statements
3. Taxation
No charge for corporation tax for the period has been made due
to the expected tax losses available.
4. Continuation of exploration activities
Notwithstanding the Directors' going concern considerations set
out above, to continue to develop the Group's exploration assets,
with a carrying value of GBP611,646 and support the Company's value
of the investment in subsidiaries supported by those assets, with a
carrying value of GBP1,633,863, the Group is dependent on securing
further funds to continue exploration activities.
If it is not possible to raise sufficient funds, the carrying
value of the exploration assets of the Group and the investment of
the Company in its subsidiaries are likely to be impaired.
5. (Loss)/earnings per share
Basic loss per share is calculated by dividing the loss
attributable to ordinary shareholders of GBP64,648 (May 2013:
GBP33,965; November 2013: GBP497,680 profit) by the weighted
average number of shares of 260,355,087 (May 2013: 150,558,878;
November 2013: 162,876,894) in issue during the period. The diluted
loss per share calculation is identical to that used for basic loss
per share as the exercise of warrants would have the effect of
reducing the loss per ordinary share and therefore is not dilutive
under the terms of Financial Reporting Standard 22 "Earnings Per
Shares".
This information is provided by RNS
The company news service from the London Stock Exchange
END
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