TIDMBOD
RNS Number : 3436I
Botswana Diamonds PLC
21 March 2018
21(st) March 2018
Botswana Diamonds PLC ("Botswana Diamonds" or the "the
Company")
Interim Results for the Six Months Ended 31(st) December
2017
Botswana Diamonds plc (AIM: BOD) ("Botswana Diamonds" or "the
Company") today announces financial results for the six months
ended 31(st) December 2017.
Recent months have been a very active exploration period for
Botswana Diamonds:
v Significant drilling and exploration has taken place on our
advanced project at Thorny River in South Africa. We are
undertaking a Scoping Study into its commerciality;
v Drilling is ongoing on the Ontevreden kimberlite in order to
delineate size and diamond content;
v Nine kimberlites in the Northwest and Free State Provinces of
South Africa were discovered or re-discovered;
v Exploration is continuing in the Central Kalahari Game Reserve
(CKGR) in Botswana through Sunland Minerals, the Company's joint
venture with Alrosa. Botswana Diamonds personnel are currently
engaged in a work programme;
v Progress is being made in our Maibwe joint venture in
Botswana. A prospectus is being drawn up by the liquidator of BCL,
to identify options; and
v GBP500,000 (before expenses) has been raised early in 2018 to
fund the ongoing exploration activities.
South Africa
Significant progress has been made on the Thorny River Project
in South Africa. This is a kimberlite dyke/pipe system which is
contiguous to the former Marsfontein and Klipspringer Mines.
Exploration work which consisted of several phases of percussion
and core drilling and microdiamond and petrographic analyses were
undertaken and concluded with the extraction and processing of a
bulk sample for macrodiamond recovery. A Scoping Study is now
underway and should be concluded by mid-2018.
A drilling programme has started to extract samples for
microdiamond analysis and to delineate the size of the kimberlite
pipe at Ontevreden in the Northwest Province. This follows
geochemistry, geophysical and mineral chemistry analyses.
In the Free State, ground work resulted in the discovery of
eight kimberlites which were assessed using geochemistry and
detailed geophysics. The results of this work were encouraging. The
next stage comprises further sampling for mineral chemistry
analysis, to determine the diamond bearing potential of these
kimberlites. This work should be concluded during the first half of
2018.
Botswana
In Botswana, the Company continues to actively explore in the
CKGR as part of the Sunland Minerals joint venture with Alrosa. The
objective of the work is to follow-up on fifteen previously
identified priority geophysical targets. Ground magnetics will be
used to supplement the airborne gravity and airborne magnetic data
obtained in earlier work. A soil sample programme will operate in
conjunction with the magnetic surveys. The objective is to turn
geophysical targets into drill targets. This phase of the work is
being undertaken by an exploration team from Botswana Diamonds. A
review of the joint venture is underway.
In order to progress the impasse on the Maibwe joint venture
(15% BOD) following the liquidation of joint venture partner BCL),
several corporate options have been proposed to BCL's liquidator.
The liquidator has decided to produce a prospectus on the licences
to encourage outside investor interest. This is due to be completed
by mid-2018.
Corporate
In early 2018 the Company raised GBP500,000 (before expenses) to
fund the work outlined above.
Apart from ongoing exploration activity on four projects and
active involvement in bringing the Maibwe situation toward a
conclusion, management and directors are examining certain
proposals which have been presented to the Board. Over the coming
months shareholders can expect regular updates on both exploration
and corporate activities.
John Teeling
Chairman
20(th) March 2018
This announcement contains inside information for the purposes
of Article 7 of Regulation 596/2014.
S
Enquiries:
Botswana Diamonds PLC
John Teeling, Chairman +353 1 833 2833
James Campbell, Managing
Director +27 83 457 3724
Jim Finn, Director
Northland Capital Partners
Limited
David Hignell/Gerry Beaney
(Corporate Finance) +44 (0) 203 861 6625
John Howes (Broking)
SVS Securities Plc +44 (0) 203 700 0100
Tom Curran
Ben Tadd
Blytheweigh +44 (0) 207 138 3204
Camilla Horsfall +44 (0) 781 784 1793
Nick Elwes +44 (0) 783 185 1855
Teneo PSG
Luke Hogg +353 (0) 1 661 4055
Alan Tyrrell +353 (0) 1 661 4055
www.botswanadiamonds.co.uk
Botswana Diamonds plc
Financial Information (Unaudited)
CONDENSED CONSOLIDATED STATEMENT
OF COMPREHENSIVE INCOME
Six Six
Months Months Year
Ended Ended Ended
31 Dec 31 Dec 30
17 16 Jun17
unaudited unaudited Audited
GBP'000 GBP'000 GBP'000
REVENUE - - -
Cost of sales - - -
-------------------- -------------------- -------------------
GROSS PROFIT - - -
Administrative ( 178 ( 136 ( 311
expenses ) ) )
-------------------- -------------------- -------------------
OPERATING ( 178 ( 136 ( 311
LOSS ) ) )
( 178 ( 136 ( 311
LOSS BEFORE TAXATION ) ) )
Income tax
expense - - -
-------------------- -------------------- -------------------
( 178 ( 136 ( 311
LOSS AFTER TAXATION ) ) )
Exchange difference on translation
of foreign operations 1 197 149
TOTAL COMPREHENSIVE INCOME/(LOSS) ( 177 ( 162
FOR THE PERIOD ) 61 )
==================== ==================== =================
LOSS PER SHARE- basic
and diluted (0.04p) (0.04p) (0.09p)
==================== ==================== =================
CONDENSED CONSOLIDATED 31 Dec 31 Dec 30
BALANCE SHEET 17 16 Jun17
unaudited unaudited audited
ASSETS: GBP'000 GBP'000 GBP'000
NON-CURRENT ASSETS
Intangible
assets 8,155 7,238 7,766
Financial
assets 1 1 1
-------------------- -------------------- -------------------
8,156 7,239 7,767
-------------------- -------------------- -------------------
CURRENT ASSETS
Trade and other receivables 50 45 60
Cash and cash
equivalents 230 60 106
-------------------- -------------------- -------------------
280 105 166
TOTAL ASSETS 8,436 7,344 7,933
-------------------- -------------------- -------------------
LIABILITIES:
CURRENT
LIABILITIES
Trade and other ( 237 ( 206 ( 429
payables ) ) )
-------------------- -------------------- -------------------
TOTAL ( 237 ( 206 ( 429
LIABILITIES ) ) )
NET ASSETS 8,199 7,138 7,504
==================== ==================== ===================
EQUITY
Share capital
- deferred shares 1,796 1,796 1,796
Share capital
- ordinary shares 1,148 846 949
Share premium 9,751 8,598 9,085
Share based payments
reserve 104 97 97
Retained ( 3,690 ( 3,337 ( 3,512
deficit ) ) )
Translation
reserve 73 121 72
( 983 ( 983 ( 983
Other reserves ) ) )
-------------------- -------------------- -------------------
TOTAL EQUITY 8,199 7,138 7,504
==================== ==================== ===================
CONDENSED CONSOLIDATED STATEMENT
OF CHANGES IN EQUITY
Share
based
Share Share Payment Retained Translation Other Total
Capital Premium Reserves Deficit Reserve Reserve Equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
As at 30 ( 3,201 ( 76 ( 983
June 2016 2,642 8,598 90 ) ) ) 7,070
Share based
payment - - 7 - - - 7
Total
comprehensive ( 136
loss - - - ) 197 - 61
------------------ ---------------- -------------------- ------------------ -------------------- -------------------- -------------------
At 31 December ( 3,337 ( 983
2016 2,642 8,598 97 ) 121 ) 7,138
Ordinary
shares issued 103 508 - - - 611
Share issue ( 21 ( 21
expenses - ) - - - )
Total
comprehensive ( 175 ( 49 ( 224
loss - ) ) - )
------------------ ---------------- -------------------- ------------------ -------------------- -------------------- -------------------
As at 30 ( 3,512 ( 983
June 2017 2,745 9,085 97 ) 72 ) 7,504
Ordinary
shares issue 199 670 - - - 869
Share issue ( 4 ( 4
expenses - ) - - - )
Share based
payment - - 7 - - - 7
Total
comprehensive ( 178 ( 177
loss - - ) 1 - )
--------------------
At 31 December ( 3,690 ( 983
2017 2,944 9,751 104 ) 73 ) 8,199
================== ================ ==================== ================== ==================== ==================== ===================
CONDENSED CONSOLIDATED Six Six
CASH FLOW Months Months Year
Ended Ended Ended
31 Dec 31 Dec 30 Jun
17 16 17
unaudited unaudited audited
GBP'000 GBP'000 GBP'000
CASH FLOW FROM OPERATING
ACTIVITIES
Loss for ( 178 ( 136 ( 311
the period ) ) )
Exchange
movements 4 188 145
-------------------- -------------------- -------------------
( 174 ( 166
) 52 )
Movements in ( 182
Working Capital ) 40 232
-------------------- -------------------- -------------------
NET CASH USED IN OPERATING ( 356
ACTIVITIES ) 92 66
-------------------- -------------------- -----------------
CASH FLOWS FROM INVESTING
ACTIVITIES
Exploration costs ( 382 ( 541 ( 994
capitalised ) ) )
-------------------- -------------------- -------------------
NET CASH USED IN INVESTING ( 382 ( 541 ( 994
ACTIVITIES ) ) )
-------------------- -------------------- -----------------
CASH FLOWS FROM FINANCING
ACTIVITIES
Proceeds from share
issue 869 - 550
Share issue ( 4 ( 21
costs ) - )
-------------------- -------------------- -------------------
NET CASH GENERATED IN
INVESTING ACTIVITIES 865 - 529
-------------------- -------------------- -----------------
NET (DECREASE)/INCREASE IN CASH ( 449 ( 399
AND CASH EQUIVALENTS 127 ) )
Cash and cash equivalents
at beginning of the period 106 500 500
Effect of foreign exchange ( 3
rate changes ) 9 5
CASH AND CASH EQUIVALENT
AT THE OF THE PERIOD 230 60 106
==================== ==================== =================
Notes:
1. INFORMATION
The financial information for the six months ended 31 December
2017 and the comparative amounts for the six months ended 31
December 2016 are unaudited. The financial information above does
not constitute full statutory accounts within the meaning of
section 434 of the Companies Act 2006.
The Interim Financial Report has been prepared in accordance
with IAS 34 Interim Financial Reporting as adopted by the European
Union.
The accounting policies and methods of computation used in the
preparation of the Interim Financial Report are consistent with
those used in the Group 2017 Annual Report, which is available at
www.botswanadiamonds.co.uk
The interim financial statements have not been audited or
reviewed by the auditors of the Group pursuant to the Auditing
Practices board guidance on Review of Interim Financial
Information.
2. DIVID
No dividend is proposed in respect of the period.
3. LOSS PER SHARE
Basic loss per share is computed by dividing the loss after
taxation for the period available to ordinary shareholders by the
weighted average number of ordinary shares in issue and ranking for
dividend during the period.
Diluted loss per share is computed by dividing the loss after
taxation for the period by the weighted average number of ordinary
shares in issue, adjusted for the effect of all dilutive potential
ordinary shares that were outstanding during the period.
The following table sets forth the computation for basic and
diluted earnings per share (EPS):
Six Months Six Months
Ended Ended Year
31 Dec 31 Dec Ended
17 16 30 Jun
17
GBP GBP GBP
Numerator
For basic and diluted
EPS retained loss (178,390) (136,055) (310,798)
============== ============== ==============
No. No. No.
Denominator
Weighted average number
of ordinary shares 444,239,174 338,411,181 351,659,107
============== ============== ==============
Loss per share - Basic
and Diluted (0.04p) (0.04p) (0.09p)
============== ============== ==============
The following potential ordinary shares are
anti-dilutive and are therefore excluded from
the weighted average number of shares for the
purposes of the diluted earnings per share:
No. No. No.
Share options 11,410,000 11,410,000 11,410,000
============== ============== ==============
4. INTANGIBLE ASSETS
31 Dec 31 Dec 30 June
17 16 17
GBP'000 GBP'000 GBP'000
Exploration and evaluation
assets:
Cost:
Opening balance 8,415 7,339 7,339
Additions 389 548 1,076
8,804 7,887 8,415
======== ======== ========
Impairment:
Opening balance 649 649 649
Provision for impairment - - -
-------- -------- --------
649 649 649
======== ======== ========
Carrying Value:
Opening balance 7,766 6,690 6,690
======== ======== ========
Closing balance 8,155 7,238 7,766
======== ======== ========
Exploration and evaluation assets relate to expenditure incurred
in exploration for diamonds in Botswana and South Africa. The
directors are aware that by its nature there is an inherent
uncertainty in exploration and evaluation assets and therefore
inherent uncertainty in relation to the carrying value of
capitalized exploration and evaluation assets.
On 11 November 2014 the Brightstone block was farmed out to BCL
Investments (Proprietary) Limited, a Botswana Company, who assumed
responsibility for the work programme. Botswana Diamonds will
retain a 15% carried interest.
On 6 February 2017 the Group entered into an Option and Earn-In
Agreement with Vutomi Mining Pty Ltd and Razorbill Properties 12
Pty Ltd (collectively known as 'Vutomi'), a private diamond
exploration and development firm in South Africa.
Pursuant to the terms of the Agreement, Botswana Diamonds has
agreed to pay Vutomi a total of GBP942,000 in cash, of which
GBP581,000 will be used to fund exploration activities. In
addition, the Company will issue 100 million ordinary shares of
0.25p each ("Ordinary Shares") to Vutomi shareholders. The
Agreement will be executed in three Phases after which the Company
will own 72% of Vutomi. The remaining 28% will continue to be held
by Vutomi's Black Economic Empowerment ('BEE') partners. The three
Phases are summarised below:
Exclusivity and Option Fee
Botswana Diamonds paid Vutomi an exclusivity and option fee of
GBP122,000, with GBP61,000 paid in cash and GBP61,000 paid in the
Company's Ordinary Shares at a price of 1.9p. The shares were
issued on 3 April 2017. Upon completion of this payment Phase 1 of
the earn-in commenced.
Phase 1
Phase 1 will last for 12 months, during which period the Company
will, subject to available funding, have the option to pay Vutomi
GBP215,000 to fund exploration activities to earn an initial 15% of
Vutomi. During Phase 1 Vutomi will grant the Company the sole and
exclusive right to fund exploration activities in, on and under the
Vutomi Prospecting Rights Area in order to prepare a conceptual
mining and development plan. The required mining permits are in
place.
Phase 2
Phase 2 will last for a further 12 months, during which period
the Company will, subject to available funding, have the option to
pay Vutomi GBP366,000 to fund exploration activities to earn an
additional 25% of Vutomi.
Phase 3
Phase 3 will commence within 90 days of the successful
completion of Phase 2. Pursuant to the Agreement, the Company will
have the option to issue the outstanding balance of 96.8m Ordinary
Shares, priced at VWAP, to Vutomi and, subject to available
funding, settle Vutomi's shareholders loan accounts of
approximately GBP300,000 in cash to earn a further 32% of
Vutomi.
Termination
At any point the Agreement will lapse if the Company does not
exercise its option regarding a specific Phase.
As at 31 December 2017, the Company had completed Phase 1 and
entered into Phase 2.
The directors believe that there were no facts or circumstances
indicating that the carrying value of intangible assets may exceed
their recoverable amount and thus no impairment review was deemed
necessary by the directors. The realisation of these intangible
assets is dependent on the successful discovery and development of
economic diamond resources and the ability of the Group to raise
sufficient finance to develop the projects. It is subject to a
number of significant potential risks, as set out below:
-- licence obligations;
-- exchange rate risks;
-- uncertainties over development and operational costs;
-- political and legal risks, including arrangements with
governments for licenses, profit sharing and taxation;
-- foreign investment risks including increases in taxes,
royalties and renegotiation of contracts;
-- title to assets;
-- financial risk management;
-- going concern; and
-- operational and environmental risks.
Included in additions for the year are GBP6,951 (June 2017:
GBP6,951) of share based payments, GBP7,989 (June 2017: GBP16,006)
of wages and salaries and GBP50,277 (June 2017: GBP73,758) of
directors remuneration.
5. SHARE CAPITAL
Number Share Capital Share Premium
GBP'000 GBP'000
At 1 July 2016
Deferred shares of 0.75p 239,487,648 1,796,157 -
Ordinary shares of 0.25p
At 1 July 2016 338,411,181 846 8,598
Issued during the period - - -
At 31 December 2016 338,411,181 846 8,598
------------ -------------- --------------
Issued during the period 41,151,727 103 508
Share issue expenses - - (21)
------------ -------------- --------------
At 30 June 2017 379,562,908 949 9,085
------------ -------------- --------------
Issued during the period 79,484,300 199 670
Share issue expenses - - (4)
At 31 December 2017 459,047,208 1,148 9,751
============ ============== ==============
Movements in share capital
On 27 February 2017, the Company raised GBP525,000 (before
expenses) through the issue of 35,000,000 new ordinary shares of
0.25p at a price of 1.5p per share to provide additional working
capital and fund development costs.
On 13 March 2017, 1,764,700 warrants were exercised at a price
of 0.85p per warrant for GBP15,000.
On 3 April 2017, the Company issued 3,210,527 new ordinary
shares of 0.25p each at a price of 1.9p to Vutomi shareholders for
GBP61,000 as part of the Joint Venture Agreement entered into.
On 11 May 2017, 1,176,500 warrants were exercised at a price of
0.85p per warrant for GBP10,000.
On 3 August 2017, the Company raised GBP603,000 (before
expenses) through the issue of 43,440,000 new ordinary shares of
0.25p at a price of 1.25p per share to provide additional working
capital and fund development costs.
On 3 August 2017, 31,244,300 warrants were exercised at a price
of 0.85p per warrant for GBP265,577.
6. POST BALANCE SHEET EVENTS
On 14(th) February 2018 the Company announced that they had
raised GBP500,000 (before expenses) via the placing of 50,000,000
new ordinary shares with new and existing investors at a price of
1p per share.
The net proceeds of the placing will fund ongoing diamond
exploration in South Africa and Botswana and will also provide the
Company with additional working capital.
7. APPROVAL
The Interim Report for the period to 31(st) December 2017 was
approved by the Directors on 20(th) March 2018.
8. AVAILABILITY OF REPORT
The Interim Statement will be available on the website at
www.botswanadiamonds.co.uk
This information is provided by RNS
The company news service from the London Stock Exchange
END
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