TIDMBZM
RNS Number : 6662J
Bellzone Mining PLC
30 June 2017
Bellzone Mining plc
("Bellzone" or "the Company")
Results for the year ended 31 December 2016
Bellzone Mining plc ("Bellzone" or "the Company") (AIM:BZM)
announces the audited results of the Company for the year ended 31
December 2016. The Company's Financial Statements will be available
shortly on the Company's website at www.bellzone.com.
Results
-- Loss for the year from continuing operations of $8.0 million (2015: $8.6 million)
-- Variable operating costs at 7% of total operating costs
compare with 14% calculated on the same basis for 2015.
-- Total assets of $21.7 million (2015: $20.4 million)
-- Net cash of $3.1 million (2015: $0.6 million) and Secured
Loans of $17.6 million (2015: $10.7 million)
CHAIRMAN'S STATEMENT
This last year proved every bit as exciting and challenging as
we had envisaged and was clearly a valuable re-set point for both
Bellzone and the Guinean Government. We accomplished our goals of
completing a substantial portion of the ferronickel feasibility
study by the end of August 2016 and drastically reducing our
operating expenses. We have also continuously engaged with the
Ministry of Mines and Geology on an Addendum to update our 2010
Mining Convention and it is highly pleasing that the content of the
Addendum has now been provisionally agreed. We await the signed
addendum and will update the market in due course. In the meantime,
the new Inter-Ministerial Council has been settling in and has been
pushing ahead with an ambitious development agenda, including
clarifying the way forward with respect to the important Simandou
deposit. This will undoubtedly have important short and long term
spillover benefits for Bellzone's Kalia iron ore project.
Such collective progress bodes well for the future. However,
challenging operating conditions persist for mining juniors and,
coupled with the unfortunate delay in finalising our updated legal
framework with the Government, we have had to further reduce
operating costs and place more employees on longer technical leave
(long term part-paid leave allowed under Guinean employment law).
This meant also that the timetable to complete the ferronickel
technical and economic evaluation work has had to be moved back by
at least six months, but with agreement reached on an update to the
Mining Convention, we fully expect work to recommence immediately
upon ratification of the Addendum document.
Despite the difficulties, the leadership team has managed to
achieve strong rapport with the authorities and local communities,
as well as truly resilient esprit de corps amongst our employees.
This admirable solidarity will be the basis for our success and we
must continue to build on our considerable strengths. On behalf of
the Board and our shareholders, I would like to express enormous
gratitude to our employees and everyone else involved with Bellzone
for their commitment and hard work, selfless sacrifices and
invaluable goodwill.
We believe, assuming long term operational financing is secured,
that the worst is now behind us, including the unprecedented
collapse in iron ore prices of 2014-15, and that the way forwards
should now become less bumpy, even if there are still economic
headwinds. Full-year funding agreement from our major shareholder
has once more been obtained for calendar 2017 and this year we will
need to borrow even less than in 2015 and 2016. We should be able
to complete our ferronickel project evaluation using the funds
already raised for that purpose and we are cautiously optimistic
that emerging strategic interest in Guinea and the iron ore sector
in general can catalyse earlier development of the Kalia
deposit.
Bellzone's potential intrinsic value has not changed. Our JORC
Reserves and Resources are well-documented and compare very
favourably in size and quality relative to other iron ore mines
globally, whether in production or not. Kalia is strategically
located with good relative accessibility and our path to production
is unambiguously short. We are among the longest established mining
companies in Guinea and have previously obtained full project
financing proposals on the basis of our KP1 BFS in 2013.
Now that negotiations on the Addendum have been concluded, we
will be able to focus all of our management and financial resources
on executing what we have agreed, as well as on a more
comprehensive investor education and outreach programme. We
continue to be grateful to our shareholders for standing by us all
this while and look forward to beginning to pay back your good
faith by unlocking our significant embedded value with concrete
progress.
Michael Farrow
Chairman
OPERATIONS AND FINANCIAL REVIEW
Review of Business in the Year
Substantial success was achieved in further reducing operating
expenses, with actual expenditure 15.4 per cent. below the US$6.5
million budget for 2016, which itself represented a 35 per cent.
reduction from the US$10.0 million budget for 2015.
Bellzone's operating costs which exclude amortisation,
depreciation and loss on disposal of fixed assets increased
slightly from $5.79 million in 2015 to $5.88 million in 2016,
despite incurring $617,000 on feasibility study work for the
ferronickel project. Including the additional interest due on the
loans to China Sonangol and Hudson, the annual loss narrowed to
$8.0 million, a reduction of 7 per cent. over the previous year and
no new significant impairments to the balance sheet or significant
provisions have been necessary.
The cost savings were achieved mainly as a result of closure of
the corporate office in Jersey, relocation of the Company's IT
function to Singapore and savings generated from Guinea operations
due to extended technical leave.
In anticipation of the feasibility study work required for the
ferronickel project, Bellzone raised GBP1.35 million (approximately
US$2.0 million) through an equity placement in January 2016 with
our major shareholder Hudson Global Group Limited ("Hudson"), which
resulted in an increase in Hudson's shareholding from 50.5% to
61.9%. This pre-funding exercise allowed Bellzone to carry out
additional geological and metallurgical analyses on the identified
nickel resource and complete the first and most important phase of
the technical study, with Tenova Minerals Pty Ltd as our main
contractor, in four months between May and September 2016. Our
preliminary conclusions were announced on 25 August 2016. Up to
now, 46 per cent. of the funds raised for feasibility study work
have been utilised and the remaining funds are expected to be
sufficient to complete the technical work to reach a more
definitive conclusion regarding the economic viability of the
ferronickel project.
In parallel, management also assessed options to acquire
interests in cash-flow producing and potentially earnings accretive
assets. One promising asset in South-east Asia in particular was
identified and high-level due diligence was carried out, but a
transaction did not prove possible to conclude. Management
continues to evaluate strategic options both on a proactive and
opportunistic basis.
There has been no change in Bellzone's funding situation, with
our major shareholder Hudson providing all of our financial
support. Our tight budget discipline meant that we needed to draw
down only on the last instalment of US$500,000 from the first
US$6.5 million secured loan from Hudson (meant to meet Bellzone's
budgeted working capital obligations for 2016) at the end of March
2017. At 31 December 2016, no amounts had been drawn down under the
second loan facility of US$4.0 million agreed with Hudson to meet
2017 working capital needs. The first draw down under this loan, of
US$800,000, was made on 6 June 2017. Bellzone's Board continues
actively to explore all alternative financing options as market
conditions change and as positive developments in Guinea
continue.
Outlook and Strategy
The main operating objective for 2017 will be to complete the
technical work related to the ferronickel project in line with
Bellzone's new commitments pursuant to the newly-agreed Addendum to
the Mining Convention. If the results are positive, the focus will
then be on obtaining the required financing to start construction
without delay.
At the same time, management intends to work closely and
continuously with our broker and other market participants to
assess funding options which will be accretive to the Company and
which may allow Bellzone to plan ahead to meet our loan obligations
to Hudson when they become due in March 2018.
Bellzone's main focus remains the development of our world-class
Kalia iron ore deposit. Provided the uplift in the iron ore price
between 4Q2016 and 1Q2017 begins to become more sustained and there
is strong resurgent investor interest, Bellzone is prepared to move
quickly to update our KP1 Bankable Feasibility Study and/or
consider other partnerships which may facilitate the earlier
exploitation of the Kalia resources.
Accounting Policies
There have been no changes to the accounting policies adopted by
the Group in 2016.
Presentation of Financial Statements
The financial statements are presented in accordance with
International Financial Reporting Standards as adopted by the
European Union ("IFRS") and are presented in US Dollars ("$") with
all values being rounded to the nearest thousand ($000) unless
otherwise stated.
Dividends
As the Group is in a project-development stage and generates no
revenue, no dividends have been declared (2015: nil).
Treasury and Cash Flow Management
At 22 June 2017, funds on hand and available (excluding $3.2m
million undrawn from the $4.0 million 2017 working capital loan
facility from Hudson) amounted to US$2.4 million.
The Board has a Treasury Committee consisting of the Chairman
and the Chief Financial Officer. The structuring of the Company's
treasury reduces exposure to currency fluctuations by holding the
bulk of the funds in the currency used for budgeted expenditure.
The expenditure in Guinean Francs is the only currency which is not
managed through this mechanism and is converted on a monthly basis
for actual funding requirements.
Julian Cheong
Executive Director
This announcement and the financial information and accompanying
notes to the financial statements do not constitute audited
financial statements but are derived from audited financial
statements. A copy of the Company's full audited results for the
year ended 31 December 2016 is contained in its audited financial
statements, which will be posted to shareholders together with a
notice of the Company's Annual General Meeting to be held in July
2017. The audited financial statements will be made available on
the Company's website at www.bellzone.com and should be read in
conjunction with the above.
The information contained within this announcement is deemed by
the Company to constitute inside information under the Market Abuse
Regulation (EU) No. 596/2014.
Enquiries:
Bellzone Mining plc
Simon Edwards +44 (0) 7767 492 712
WH Ireland Limited
Nominated Adviser and Broker
James Joyce / James Bavister +44 (0) 20 7220 1666
Bell Pottinger
Financial Public and Investor
Relations
Victoria Geoghegan / Liz Morley +44 (0) 20 3772 2500
http://www.bellzone.com/
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
At 31 December 2016
2015
2016 Restated*
Note $'000 $'000
-------------------------------------- ---- --------- ---------
ASSETS
Non-current assets
Property, plant and equipment* 4 1,627 2,760
Other intangible assets 126 194
Mineral properties in the exploration
and evaluation phase 5 16,066 16,066
-------------------------------------- ---- --------- ---------
Total non-current assets 17,819 19,020
-------------------------------------- ---- --------- ---------
Current assets
Cash and cash equivalents 3,138 598
Trade and other receivables 58 134
Inventories 640 640
-------------------------------------- ---- --------- ---------
Total current assets 3,836 1,372
-------------------------------------- ---- --------- ---------
Total assets 21,655 20,392
-------------------------------------- ---- --------- ---------
EQUITY
Issued capital 333,349 331,352
Reserves 5,101 5,101
Retained losses (340,285) (332,326)
-------------------------------------- ---- --------- ---------
Total equity (1,835) 4,127
-------------------------------------- ---- --------- ---------
LIABILITIES
Non-current liabilities
Secured loans 17,603 10,691
-------------------------------------- ---- --------- ---------
Total non-current liabilities 17,603 10,691
-------------------------------------- ---- --------- ---------
Current liabilities
Trade and other payables 5,825 5,513
Provisions 62 61
-------------------------------------- ---- --------- ---------
Total current liabilities 5,887 5,574
-------------------------------------- ---- --------- ---------
Total liabilities 23,490 16,265
-------------------------------------- ---- --------- ---------
Total equity and liabilities 21,655 20,392
-------------------------------------- ---- --------- ---------
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the year ended 31 December 2016
2015
2016 Restated*
Note $'000 $'000
-------------------------------------------------- ---- ------- -------
Continuing operations
Employee benefits expense (2,921) (3,020)
Depreciation and amortisation expenses* 4 (1,201) (1,424)
Administration expenses (745) (894)
Consulting expenses (373) (456)
Exploration expenses (1,214) (844)
Legal expenses (173) (230)
Occupancy expenses (184) (210)
Loss on disposal of furniture, fittings and
equipment - (267)
Travel and accommodation expenses (61) (129)
Net foreign exchange losses (209) (8)
-------------------------------------------------- ---- ------- -------
Results from operating activities (7,081) (7,482)
Finance income 10 4
Finance expense (888) (562)
Impairment of non-current assets - (526)
-------------------------------------------------- ---- ------- -------
Loss before income tax from continuing operations (7,959) (8,566)
Income tax loss - -
-------------------------------------------------- ---- ------- -------
Loss for the year from continuing operations (7,959) (8,566)
Total comprehensive loss for the year, net
of tax:
Attributable to equity holders of the parent
entity (7,959) (8,566)
-------------------------------------------------- ---- ------- -------
Cents Cents
-------------------------------------------------- ---- ------- -------
Loss per share attributable to the ordinary
equity holders of the parent entity:
Basic and diluted loss per share (0.8) (1.2)
-------------------------------------------------- ---- ------- -------
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the year ended 31 December 2016
Issued Reserves Retained Total
Capital Losses Equity
--------------------------------------
$'000 $'000 $'000 $'000
-------------------------------------- ------------- ------------ ------------------- --------------
Balance at 1 January 2016 331,352 5,101 (332,326) 4,127
------------- ------------ ------------------- --------------
Loss for the year - - (7,959) (7,959)
------------- ------------ ------------------- --------------
Total comprehensive loss
for the year - - (7,959) (7,959)
Shares issued, net of costs 1,997 - - 1,997
--------------------------------------- ------------- ------------ ------------------- --------------
Balance at 31 December
2016 333,349 5,101 (340,285) (1,835)
--------------------------------------- ------------- ------------ ------------------- --------------
Balance at 1 January 2015 331,352 5,533 (323,926) 12,959
Adjustment to opening balance
on correction of error - - 166 166
--------------------------------------- ------------- ------------ ------------------- --------------
Balance at 1 January 2015
(*restated) 331,352 5,533 (323,760) 13,125
Loss for the year as reported
in 2015
Adjustment to loss for
the year - - (8,547) (8,547)
on correction of error - - (19) (19)
Total comprehensive income/(loss)
for the year (*restated) - - (8,566) (8,566)
Share-based payment transactions - (432) - (432)
--------------------------------------- ------------------------------------------------ --------------
Balance at 31 December
2015 (*restated) 331,352 5,101 (332,326) 4,127
--------------------------------------- ------------------------------------------------ --------------
CONSOLIDATED CASH FLOW STATEMENT
-----------------
For the year ended 31 December 2016
-------------------------------------------- ------- -------
2016 2015
$'000 $'000
------------------------------------------- ------- -------
Net cash outflow from operating activities (5,406) (7,063)
-------------------------------------------- ------- -------
Cash flows from investing activities
Payments for property, plant and equipment - (6)
-------------------------------------------- ------- -------
Net cash outflow from investing activities - (6)
-------------------------------------------- ------- -------
Cash flows from financing activities
Proceeds from issues of shares 2,015 -
Net proceeds from secured loan 6,000 6,700
Payments for share issue costs (18) -
-------------------------------------------- ------- -------
Net cash inflow from financing activities 7,997 6,700
-------------------------------------------- ------- -------
Net increase/(decrease) in cash and cash
equivalents 2,591 (369)
-------------------------------------------- ------- -------
Cash and cash equivalents at the beginning
of the financial year 598 980
Exchange differences (51) (13)
-------------------------------------------- ------- -------
Cash and cash equivalents at end of year 3,138 598
-------------------------------------------- ------- -------
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 31 December 2016
1. REPORTING ENTITY
The consolidated financial statements of Bellzone Mining plc
("the Company") for the year ended 31 December 2016 were authorised
for issue in accordance with a resolution of the board of directors
on 29 June 2017.
Bellzone Mining plc is a public company listed on AIM of the
London Stock Exchange, and incorporated and registered in Jersey,
Channel Islands. The Company's registered office is located at
Standard Bank House, 47-49 La Motte Street, St Helier, Jersey, JE2
4SZ. The consolidated financial statements of the Company as at and
for the year ended 31 December 2016 comprise the Company and its
subsidiaries (together referred to as the "Group").
The nature of the principal activities of the Group is described
in the Directors' Report. The principal accounting policies adopted
in the preparation of these financial statements are set out below.
These policies have been consistently applied unless otherwise
stated.
2. BASIS OF PREPARATION
a. Statement of compliance
The financial statements have been prepared in accordance with
International Financial Reporting Standards as adopted for use in
the European Union ("IFRS").
b. Adoption of new standards
The Group has adopted new and revised standards and
interpretations issued by the International Accounting Standards
Board (IASB) and the International Financial Reporting
Interpretations Committee (IFRIC) of the IASB and adopted by the
European Union that are relevant to its operations and effective
for accounting periods beginning on or after 1 January 2016.
Although these new standards and amendments apply for the first
time in 2016, they do not have a material impact on the
consolidated financial statements of the Group.
The Group has not early adopted any other standard,
interpretation or amendment that has been issued but is not yet
effective.
c. Basis of measurement
The financial statements have been prepared on the historical
cost basis except where indicated otherwise in the notes to the
financial statements.
d. Functional and presentation currency
The functional currency of the Company and all of its
subsidiaries is the United States Dollar ("US Dollar"), which is
the currency of the primary economic environment in which the
entities operate. All amounts are expressed in US Dollar and all
values are rounded to the nearest thousand ($000) unless otherwise
stated.
e. Critical accounting estimates and judgements
The preparation of the consolidated financial statements in
conformity with IFRS as adopted for use in the European Union
requires management to make judgements, estimates and form
assumptions that affect the reported amounts of assets,
liabilities, expenses and the disclosure of contingent liabilities
at the date of the financial statements. Estimates and judgements
are continually evaluated and are based on historical experience
and other factors, including expectations of future events that are
believed to be reasonable under the circumstances.
The Group makes estimates and assumptions concerning the future
and the resulting accounting estimates will, by definition, seldom
equal the related actual results. The estimates and assumptions
that have a significant risk of causing a material adjustment to
the financial results or the financial position reported in future
periods are disclosed below.
Mineral properties in the exploration and evaluation phase and
exploration expenditure:
Judgement is applied by management in determining when a project
has reached a stage at which economically recoverable reserves
exist and that development may be sanctioned. The Company has
determined that the most appropriate accounting policy for the
Kalia asset is to expense all exploration activity (other than the
initial licence acquisition costs) as incurred.
Management is also required to make certain judgements and
assumptions as to events and circumstances that may occur in the
future, in particular the ongoing validity of the mining licence,
whether extraction operations are economically viable where
reserves have been discovered and whether indications of impairment
under IFRS 6 exist. Any such estimates and assumptions may change
as new information becomes available.
Property, plant and equipment - recoverable amount:
The calculation of the recoverable amount and useful life of an
asset requires significant judgements, estimates and assumptions,
including future demand, technological changes, exchange rates,
interest rates and others.
The Group assesses each cash generating unit/investment (CGU)
annually to determine whether any indication of impairment exists.
Where an indicator of impairment exists, a formal estimate of the
recoverable amount is made, which is considered to be the higher of
the fair value less costs to sell and value in use. Depending on
the asset type, these assessments require the use of estimates and
assumptions such as future commodity prices, discount rates, future
capital requirements, exploration potential and operating
performance. Fair value is determined as management's best estimate
of the amount that would be obtained from the sale of the asset in
an arm's length transaction between knowledgeable and willing
parties. Cash flows are discounted by an appropriate discount rate
to determine the net present value.
f. Going concern
The nature of the Group's current activities does not provide
the Group with production or trading revenues. The Group is
currently in advanced discussions with the Government of Guinea to
amend its Kalia mining convention to resolve the technical breach
and provide the necessary framework for the development of the
proposed ferronickel project. The approval process is ongoing at
the date of this report. The Directors, having considered the
progress made to date and correspondence between the Group and the
Guinean Government, expect resolution of this matter will occur
later in 2017.
Following the expected amendment to the Kalia mining convention
noted above, the Group will continue feasibility study work on its
proposed ferronickel project within the Kalia licence area and has
set aside sufficient funding to complete this study which is
expected to be completed in the first half of 2018. However, our
ability to complete this study is also dependent on our majority
shareholder Hudson releasing the remaining funds from its US$4.0
million facility, which is at their discretion and likely to be
impacted if agreement is not reached on the amendment to the Kalia
convention.
Given difficult market conditions, Bellzone remains wholly
reliant on its majority shareholder, Hudson. China Sonangol (a
related company of Hudson) provided loan financing to the Company
from August 2014 to the end of 2015, totalling a principal amount
of US$10.2 million. Hudson provided a second loan in the principal
amount of US$6.5 million to finance the Company through 2016, with
the final drawdown on this loan received in March 2017. The Company
has drawn these loans fully, amounting to US$16.7 million and the
total principal and accrued interest for both loans was US$18.5
million as at 31 December 2016. A further loan of US$4.0 million
was agreed with Hudson but undrawn at the end of 2016, to enable
the Company to continue operating through 2017 and the first draw
down on this loan in the amount of US$800,000 was completed on 6
June 2017. It is at Hudson's discretion to allow further drawdowns
under this facility. Further details are provided in Note 23 of the
Financial Statements. Due to successful cost management which has
obviated the need to draw down on this third loan earlier, this
most recent loan amount is expected to be sufficient to meet
Bellzone's working capital needs up to June 2018, subject to
assumptions necessarily made in respect of the group's cashflow
forecast.
All three loan agreements have the same repayment date for
principal and accrued interest of 31 March 2018. If no additional
funds are raised before such time to allow Bellzone to discharge
its loan obligations, Bellzone, China Sonangol and Hudson will need
to reach agreement on a suitable arrangement to defer repayment
such that Bellzone will not be in default. No such agreement has
been reached at the date of this report.
A positive outcome on the ferronickel feasibility study is
uncertain and in any event additional funding is likely to be
required to advance the project to a bankable feasibility stage.
Furthermore, to commence development, significant funding would be
required from external parties which is not committed at the date
of this annual report.
The current cash reserves and shareholder loans would be
sufficient to see the Group's activities through to the end of June
2018, however drawdowns on the shareholder loan facility are at the
discretion of the shareholder, and the repayment date of these
shareholder loans made by China Sonangol and Hudson is 31 March
2018. The Group will therefore require drawdowns to be made
available, and further financing beyond 31 March 2018 to enable it
to continue to meet its liabilities as and when they fall due, if
an agreement cannot be reached with China Sonangol and Hudson to
extend the repayment date of the loans.
The Group continues to evaluate its strategy and its ability to
secure funding that would enable it both to continue operations for
the short term and in the long term to develop the Kalia licence
area; however, at present there are no committed facilities which
would enable Bellzone for a period of 12 months from the date of
these financial statements nor provide certainty that the
ferronickel feasibility study can be completed. In the event of
Hudson withdrawing support, the Directors' view is that additional
funding may be sourced from one or more of the following:
-- placement of further securities;
-- the sale of assets; and/or
-- funding in exchange for an interest in the Group's projects
or future production from the projects.
Whilst the above funding sources are considered available to the
Group, there are currently no advanced plans to execute any of
these funding strategies.
Hudson has confirmed in a letter to the Directors its current
intention to continue making funds available to support the Group's
working capital requirements for a period of 12 months from the
date of signing the financial statements, on a basis that allows
Hudson to change that intention. On this basis and given Hudson's
past support, the Directors believe that Hudson will continue to
provide on-going funding to Bellzone, as well as consider
favourably postponing the repayment date for all of its existing
loans.
Taking the above factors into account, the Directors believe it
is reasonable to expect that the Group will obtain sufficient
funding from one or more of the aforementioned funding sources and
have continued to adopt the going concern basis of accounting in
preparing the Consolidated Financial Statements. However, the
Directors wish to highlight that there is a material uncertainty in
relation to the continuing support from Hudson, in particular the
availability of committed short-term funding, and reaching an
agreement for the deferral of the repayment date for its loan
facilities.
As the Directors have concluded that there is a material
uncertainty that may cast significant doubt on the ability of
Bellzone to continue as a going concern beyond a period of 12
months from the date of this report, there is a risk that the Group
and Company may be unable to realise their assets and discharge
their liabilities in the normal course of business. The financial
statements do not include the adjustments that would result if the
company was unable to continue as a going concern.
3. SEGMENT INFORMATION
The Group determines and presents operating segments based on
the information that is internally provided to the Group's chief
operating decision maker. The chief operating decision maker has
been identified as the Board of Directors. The Board currently
considers the project level (previously the internal reporting was
done on a consolidated level) and has identified four reportable
segments:
-- Kalia segment represents the exploration activities undertaken at the Kalia Mine;
-- Forécariah segment represents the 50:50 joint venture between
Bellzone and China International Fund Ltd (CIF) to fully fund
exploration and development of a mine and infrastructure;
-- Sadeka segment represents exploration activities for nickel
and copper in south-east Guinea; and
-- Technical & Support Services represents funding, shared
services, treasury and technical support delivered from Jersey,
Singapore and the Conakry office in Guinea.
Transfer prices between operating segments are made on an arm's
length basis.
Kalia Technical
&
Forécariah Sadeka Support Total Eliminations Consolidated
Services
$'000 $'000 $'000 $'000 $'000 $'000 $'000
-------------------------- ------------ ------------------ ------- -------------- --------------- -------------- -----------------
31 December 2016 Revenue
Inter-segment- - - 1,234 1,234 (1,234) -
-------------------------- ------------ ------------------ ------- -------------- --------------- -------------- -----------------
Results
Segment loss (5,957) (5,957) - (314) (1,614) (7,885) (74) (7,959)
-------------------------- ------------ ------------------ ------- -------------- --------------- -------------- -----------------
Total (5,957) - (314) (1,614) (7,885) (74) (7,959)
-------------------------- ------------ ------------------ ------- -------------- --------------- -------------- -----------------
31 December 2015 Revenue
Inter-segment- - - 933 933 (933) -
-------------------------- ------------ ------------------ ------- -------------- --------------- -------------- -----------------
Results
Segment loss(
Prior year adjustment (6,157)
- (348) (2,079) (8,584) 563 (8,021)
(19) - - - (19) - (19)
Impairment- (526) - - (526) - (526)
-------------------------- ------------ ------------------ ------- -------------- --------------- -------------- -----------------
Total (Restated) (6,176) (526) (348) (2,079) (9,129) 563 (8,566)
-------------------------- ------------ ------------------ ------- -------------- --------------- -------------- -----------------
Segment assets
At 31 December 2016 5,481 - 55 66,744 72,280 (50,625) 21,655
-------------------------- ------------ ------------------ ------- -------------- --------------- -------------- -----------------
At 31 December 2015
(restated) 6,407 - 217 59,200 65,824 (45,432) 20,392
-------------------------- ------------ ------------------ ------- -------------- --------------- -------------- -----------------
Non-current assets - geographical
information
--------- ------------------------------------------------- -------------------------------------------------------- -----------------
2016 2015
$'000 $'000
--------- ------------------------------------------------- -------------------------------------------------------- -----------------
Guinea 17,693 18,760
Jersey - 260
Singapore 126 -
----------------------------------------------------------- -------------------------------------------------------- -----------------
17,819 19,020
----------------------------------------------------------- -------------------------------------------------------- -----------------
4. PROPERTY, PLANT AND EQUIPMENT
Freehold Plant Furniture, Fittings Motor Work
and and
Buildings Equipment Equipment Vehicles in Progress Total
$'000 $'000 $'000 $'000 $'000 $'000
--------------------------- ---------- ---------- -------------------- --------- ------------ --------
At 31 December
2016
Opening net book
value
- 1 January 2016
- restated 969 1,366 111 281 33 2,760
---------- ---------- -------------------- --------- ------------ --------
Depreciation charges -64 -740 -108 -221 - -1,133
--------------------------- ---------- ---------- -------------------- --------- ------------ --------
Closing net book
value
- 31 December 2016 905 626 3 60 33 1,627
--------------------------- ---------- ---------- -------------------- --------- ------------ --------
Cost 1,387 12,142 857 2,445 33 16,864
--------------------------- ---------- ---------- -------------------- --------- ------------ --------
Accumulated depreciation -482 -11,516 -854 -2,385 - -15,237
--------------------------- ---------- ---------- -------------------- --------- ------------ --------
Net book value
at 31 December
2015 905 626 3 60 33 1,627
--------------------------- ---------- ---------- -------------------- --------- ------------ --------
Opening net book
value as on 1 January
2015 - As previously
reported 898 1,823 815 640 33 4,209
--------------------------- ---------- ---------- -------------------- --------- ------------ --------
Adjustment on correction
of error - Opening
net book value
as on 1 January
2015 169 - - - - 169
--------------------------- ---------- ---------- -------------------- --------- ------------ --------
- Restated 1,067 1,823 815 640 33 4,378
--------------------------- ---------- ---------- -------------------- --------- ------------ --------
Additions/(write-offs) - 6 - - - 6
--------------------------- ---------- ---------- -------------------- --------- ------------ --------
Disposals - - -267 - - -267
--------------------------- ---------- ---------- -------------------- --------- ------------ --------
Depreciation charges
- Restated -98 -463 -437 -359 - -1,357
--------------------------- ---------- ---------- -------------------- --------- ------------ --------
Closing net book
value as on 31
December 2015
- Restated 969 1,366 111 281 33 2,760
--------------------------- ---------- ---------- -------------------- --------- ------------ --------
Cost* 1,387 12,142 857 2,445 33 16,864
--------------------------- ---------- ---------- -------------------- --------- ------------ --------
Accumulated depreciation* -565 -10,776 -746 -2,164 - -14,251
--------------------------- ---------- ---------- -------------------- --------- ------------ --------
Adjustment on correction
of error 147 - - - - 147
--------------------------- ---------- ---------- -------------------- --------- ------------ --------
- Restated -418 -10,776 -746 -2,164 - -14,104
--------------------------- ---------- ---------- -------------------- --------- ------------ --------
Net book value 969 1,366 111 281 33 2,760
Accumulated depreciation
* Certain amounts have been reclassified within cost and
accumulated depreciation to more accurately reflect the nature of
these assets. These reclassifications at 31 December 2015 have
resulted in the following revisions to net book value at that date:
Freehold Buildings decreased by $20,000, Plant and Equipment
increased by $159,000, Furniture Fixtures and Equipment decreased
by $187,000, and Motor Vehicles increased by $48,000. There is no
impact on the total value or on consolidated statement of
comprehensive income as a result of the reclassification.
5. MINERAL PROPERTIES IN THE EXPLORATION AND EVALUATION
PHASE
-------------------------------------------------------- --------------------------------
2016 2015
$'000 $'000
-------------------------------------------------------- ----------------- -------------
Reconciliation of carrying value
Opening net book value 16,066 16,066
Additions - -
-------------------------------------------------------- ----------------- -------------
Closing net book value 16,066 16,066
-------------------------------------------------------- ----------------- -------------
At Balance sheet date
Cost 16,066 16,066
Amortisation - -
-------------------------------------------------------- ----------------- -------------
Net book value 16,066 16,066
-------------------------------------------------------- ----------------- -------------
The above asset values relate to the mineral properties in the
exploration and evaluation phase and are based on the cost of
acquiring 100% of the companies holding the Kalia, Faranah and
Sadeka exploration permits.
In addition to the costs of acquiring the exploration permits
through the acquisition of the subsidiaries, the statutory fees
paid on the issue of the Mining Concessions (Permits) for the Kalia
and Faranah areas are included.
6. EVENTS OCCURRING AFTER THE REPORTING PERIOD
On 21 December 2015, Bellzone entered into a US$6.5 million loan
agreement with Hudson Global and, on 23 December 2016, Bellzone had
entered into a second loan agreement for a loan amount of US$4.0
million, interest bearing at LIBOR + 5% to be accrued monthly and
repayable together with the principal sum on 31 March 2018.
Bellzone made the final draw down of funds under the first of these
loans in the amount of US$0.5 million on 29 March 2017 and,
subsequently, the first draw down of the new loan in the amount if
US$0.8 million on 6 June 2017.
Bellzone has continued to negotiate with the Government of
Guinea an amendment agreement (the 'Addendum') in relation to the
Kalia Mining Convention signed and ratified in 2010. On 8 June
2017, Bellzone announced that it had reached a provisional
agreement with the Government of Guinea, including approval for the
proposed Ferronickel project at Kalia. As at the date of
publication of this annual report, the Addendum is going through
the official approval process in Guinea. No date has been set for
the signature by the relevant Guinean Ministers of State (including
the Minister of Mines & Geology) or the final ratification of
the Addendum by the National Assembly of Guinea.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR OKCDDCBKDAAB
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June 30, 2017 02:01 ET (06:01 GMT)
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