TIDMCGNR
The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulations
(EU) No. 596/2014 ("MAR").
28 February 2019
Conroy Gold and Natural Resources plc
("Conroy" or "the Company")
Half-yearly results for the six months ended 30 November 2018
Conroy (AIM: CGNR), the Irish-based resource company exploring and developing
gold projects in Ireland and Finland, is pleased to announce its results for
the six months ended 30 November 2018.
Highlights:
* Excellent drill results from extended programme at Clontibret; 1,768 metres
completed
* Updated Exploration Target of 8.8 million ounces of gold:
* In only the three major gold targets - Clontibret, Clay Lake and Glenish -
and excluding the defined gold resource of over half a million ounces at
Clontibret
* Clontibret:
* Gold lodes intercepted with excellent grades - up to 24g/t
* New area of bedrock gold mineralisation discovered between the Clontibret
gold deposit and the Corcaskea gold target
* Clay Lake:
* Gold intersection of over 150 metres at 0.3g/t gold
* The intersection at a downhole depth of 252 metres is the deepest to date
* Placing to raise GBP500,000 completed
Professor Richard Conroy, Chairman, commented:
"The initial drill programme was very successful and we used the extended one
to build on those results. Further drilling is planned to increase the
resource, and the environmental and other studies related to the projected mine
development continue. The new discoveries and the updated exploration target
show the potential of the 700 km² that the Company has under licence."
For further information please contact:
Conroy Gold and Natural Resources plc Tel: +353-1-479-6180
Professor Richard Conroy, Chairman
Allenby Capital Limited (Nomad) Tel: +44-20-3328-5656
Nick Athanas/Nick Harriss
Brandon Hill Capital Limited (Broker) Tel: +44-20-3463-5000
Jonathan Evans
Lothbury Financial Services Tel: +44-20-3290-0707
Michael Padley
Hall Communications Tel: +353-1-660-9377
Don Hall
Visit the website at: www.conroygold.com
Chairman's Statement
Dear Shareholder,
I have great pleasure in presenting your Company's Half-Yearly Report for the
six month period ended 30 November 2018. The period has been one of further
successful progress. Excellent results came from the drilling programme in the
Clontibret - Clay Lake - Glenish gold area and an expanded exploration target
of 8.8M oz gold was estimated for the area as announced on 2 August 2018.
Environmental and other studies continued to progress in relation to the
Company's proposed mine development at Clontibret. In addition a successful
placing during the half-year raised GBP500,000 (EUR556,545) for the Company to fund
the advancement of the Company's gold assets.
Principal Activities and Business Review
Gold Price
The price of gold is a dominant feature in any business review or sensitivity
analysis of a gold mining development. During the period as the Company
continued with its exploration and development activities, it is very pleasing
to note a significant rise in the gold price from less than $1,200 an ounce in
October 2018 to over $1,300 an ounce at the date of writing. It is also
relevant that all the world's Central Banks have been increasing their holdings
of gold during the past year.
Exploration Activity
The Company's principal exploration activities during the period centred around
its drilling at Clontibret where, following the discovery of extensive gold
zones with wide mineralised intersections and grades up to 24g/t gold, an
initial 1,000 metre drilling programme was expanded by a further 700 metres.
This resulted in the discovery of further significant intercepts and gold
grades.
Drilling was also carried out at the Company's gold targets at Clay Lake and
Glenish, immediately to the northeast and southwest respectively of Clontibret,
as part of an overall drilling programme encompassing the 17km long gold
district, Clontibret - Clay Lake - Glenish, which the Company has discovered in
the northeast of its licence area.
Gold intersections at Clay Lake included one which extended for over 150 metres
at 0.3g/t gold. This wide gold intersection adds to previous drilling and
trenching results which suggest potential for high tonnage and overall gold
content in the Clay Lake gold target.
Bedrock Gold Discovery
A new area of bedrock gold mineralisation was discovered during prospecting
between the Clontibret gold deposit and the Corcaskea gold target. The grade
of the gold outcrop discovered is 5.6g/t gold. This newly discovered outcrop
lies to the north of the Clontibret gold deposit, on which the Company has
defined a JORC resource of 517,000 oz gold, and to the south of the Corcaskea
gold target, which has yielded significant gold intersections in trenches,
including 16.5 metres at 6.5g/t gold and 12 metres at 4.9g/t gold. The
relevance of this discovery is that geological interpretation suggests that
continuity between the Clontibret gold deposit, which is open in all directions
and to depth, and the Corcaskea gold target is becoming established. Proving
continuity between the Clontibret gold deposit and the Corcaskea gold target
will indicate significantly increased gold potential in the area.
Exploration Target Update
During the half-year an updated Exploration Target of 8.8M ounces gold
associated with the gold-in-soil anomalies in the Clontibret-Clay Lake-Glenish
gold district has been estimated by consulting geologist Professor Garth Earls
(Professor Earls is also a non-executive director of the Company). This
updated Exploration Target of 8.8M oz gold does not include the already defined
JORC compliant resource of 517,000 oz gold in the Clontibret gold deposit. The
updated target is to a depth of 200 metres and now includes the Glenish gold
target. It should be noted, however, that the potential quantity and grade of
the Exploration Target are, however, essentially conceptual in nature and must
not be construed as Resources or Reserves.
Future Drilling and Other Activities
Further drilling is planned for the Clontibret - Clay Lake - Glenish gold
target area with a view to increasing the resource at Clontibret and
delineating the gold potential at Clay Lake and Glenish and indeed elsewhere
along the 65km (40 miles) gold trend which your Company has discovered. There
will also be follow up on the gold in bedrock discovery between the Clontibret
gold deposit and the Corcaskea gold target.
Mine Development
The ultimate objective of your Company's exploration programme is, of course,
the discovery and development of economic mineral resources. A Preliminary
Economic Assessment (PEA) has indicated technical and financial feasibility of
the Company's Clontibret gold deposit and environmental and other studies
related to the projected mine development continue.
Summary
Overall the geology of the area, further excellent drilling results during
2018, the recent bedrock discovery between the resource area and Corcaskea and
the presence of 65km (40 miles) gold trend discovered by the Company all lend
encouragement and substance to our belief that the discovery of a multimillion
ounce gold deposit in the Company's licence area is highly achievable.
Finance
The loss after taxation for the half-year ended 30 November 2018 was EUR285,604
(six-month period ended 30 November 2017: loss EUR458,222) and the net assets as
at 30 November 2018 were EUR18,145,291 (30 November 2017: EUR16,709,325). During
the half - year a placing to raise GBP500,000 (EUR556,545) was successfully
completed by the Company.
Directors and Staff
I would like to thank my fellow directors, staff and consultants for their
support and dedication, which has enabled the continued success of the Company.
Outlook
We look forward to continuing to make successful progress with our exploration,
delineation and development programmes on the Company's gold properties.
Professor Richard Conroy
Chairman
28 February 2019
Condensed consolidated income statement and condensed consolidated statement of
comprehensive income
for the six-month period ended 30 November 2018
Condensed consolidated income
statement
Note Six-month Six-month Year
period ended period ended 30 ended 31
30 November November 2017 May 2018
2018 (Unaudited) EUR (Audited)
(Unaudited) EUR EUR
Continuing operations
Operating expenses (285,604) (458,222) (745,498)
Finance income - interest - - 13
Loss before taxation (285,604) (458,222) (745,485)
Income tax expense - - -
Loss for the financial period/ (285,604) (458,222) (745,485)
year
Loss per share
Basic loss per ordinary share 2 (EUR0.0130) (EUR0.0401) (EUR0.0485)
Diluted loss per ordinary share 2 (EUR0.0130) (EUR0.0401) (EUR0.0396)
Six-month Six-month Year
period ended period ended ended 31
30 November 30 November May 2018
2018 2017 (Audited)
(Unaudited) EUR (Unaudited) EUR EUR
Loss for the financial period/ (285,604) (458,222) (745,485)
year
Income/expense recognised in
other comprehensive income - - -
Total comprehensive expense for
the financial period/year (285,604) (458,222) (745,485)
Condensed consolidated statement of financial position as at 30 November 2018
Note 30 November 30 November Year ended
2018 2017 31 May 2018
(Unaudited) (Unaudited) (Audited)
EUR EUR EUR
Assets
Non-current assets
Intangible assets 4 21,487,318 19,981,950 21,000,286
Property, plant and equipment 12,292 14,174 13,232
Total non-current assets 21,499,610 19,996,124 21,013,518
Current assets
Cash and cash equivalents 53,773 102,109 233,161
Other receivables 99,664 97,117 72,298
Total current assets 153,437 199,226 305,459
Total assets 21,653,047 20,195,350 21,318,977
Equity
Capital and reserves
Called up share capital 23,693 12,214 20,057
Called up deferred share 10,504,431 10,504,431 10,504,431
capital
Share premium 12,727,194 11,054,732 12,174,285
Capital conversion reserve fund 30,617 30,617 30,617
Share based payments reserve 751,293 1,542,961 995,489
Retained losses (5,891,937) (6,435,630) (5,850,529)
Total equity 18,145,291 16,709,325 17,874,350
Liabilities
Non-current liabilities
Directors' loans 5 185,343 180,343 185,343
Total non-current liabilities 185,343 180,343 185,343
Current liabilities
Trade and other payables:
amounts falling due within one 3,322,413 3,305,682 3,259,284
year
Total current liabilities 3,322,413 3,305,682 3,259,284
Total liabilities 3,507,756 3,486,025 3,444,627
Total equity and liabilities 21,653,047 20,195,350 21,318,977
Condensed consolidated statement of cash flows
for the six-month period ended 30 November 2018
Six-month Six-month Year ended 31 May 2018
period period (Audited) EUR
ended 30 ended 30
November November
2018 2017
(Unaudited) (Unaudited)
EUR EUR
Cash flows from operating activities
Loss for the financial period/year (285,604) (458,222) (745,485)
Adjustments for:
Depreciation 940 942 1,884
Expense recognised in income statement in - - 74,621
respect of equity settled share based
payments
(Increase)/decrease in other receivables (27,366) 1,863 26,862
Increase in trade and other payables 58,792 551,279 665,196
Net cash (outflow)/provided by operating (253,238) 95,862 22,898
activities
Cash flows from investing activities
Investment in exploration and evaluation (487,032) (322,846) (1,042,705)
Payments to acquire property, plant and - - -
equipment
Net cash used in investing activities (487,032) (322,846) (1,042,705)
Cash flows from financing activities
Issue of share capital 556,545 406,680 1,543,076
Share issue costs - - (48,206)
(Repayments)/advances from Directors' - (96,944) (91,944)
Advances/(Repayments) from Karelian
Diamond Resources P.L.C. 4,337 (347) (160,662)
Net cash provided by financing activities 560,882 309,389 1,233,264
(Decrease)/Increase in cash and cash (179,388) 82,405 213,457
equivalents
Cash and cash equivalents at beginning of
financial period/year 233,161 19,704 19,704
Cash and cash equivalents at end of 53,773 102,109 233,161
financial period/year
Condensed consolidated statement of changes in equity
for the six-month period ended 30 November 2018
Share Share Capital Share based Retained Total
capital premium conversion payment losses equity
(including reserve reserve
called up fund
deferred
share
capital)
EUR EUR EUR EUR EUR EUR
10,524,488 12,174,285 995,489 (5,850,529) 17,874,350
Balance at 1 June 30,617
2018
Share issue 3,636 552,909 - - - 556,545
Transfer from
share-based payment
reserve to retained - - - (244,196) 244,196 -
losses
Loss for the - - - (285,604) (285,604)
financial period -
Balance at 30 10,528,124 12,727,194 751,293 (5,891,937) 18,145,291
November 2018 30,617
10,649,252 1,542,961 (5,977,408) 16,760,867
Balance at 1 June 10,515,445 30,617
2017
Share issue 1,200 405,480 - - - 406,680
Loss for the - - - (458,222) (458,222)
financial period -
Balance at 30 10,516,645 11,054,732 1,542,961 (6,435,630) 16,709,325
November 2017 30,617
Share capital
The share capital comprises the nominal value share capital issued for cash and
non-cash consideration. The share capital also comprises deferred share
capital. The deferred share capital arose through the restructuring of share
capital which was approved at General Meetings held on 26 February 2015 and 14
December 2015.
Authorised share capital:
The authorised share capital at 30 November 2018 comprised 11,995,569,058
ordinary shares of EUR0.001 each, 306,779,844 deferred shares of EUR0.02 each, and
437,320,727 deferred shares of EUR0.00999 each (EUR22,500,000), (30 November 2017:
11,995,569,058 ordinary shares of EUR0.001 each, 306,779,844 deferred shares of EUR
0.02 each, and 437,320,727 deferred shares of EUR0.00999 each (EUR22,500,000)).
Share issues during the period ended 30 November 2018:
On 24 August 2018, the Company raised EUR556,545, (before expenses), through the
issue of 3,636,365 ordinary shares of EUR0.001 in the capital of the Company at a
price of GBP0.1375 per Subscription Share.
Share premium
The share premium reserve comprises the excess consideration received in
respect of share capital over the nominal value of the shares issued.
Capital conversion reserve fund
The ordinary shares of the Company were re-nominalised from EUR0.03174435 each to
EUR0.03 each in 2001 and the amount by which the issued share capital of the
Company was reduced, was transferred to the capital conversion reserve fund.
Share based payment reserve
The share based payment reserve represents the amount expensed to the condensed
consolidated income statement in addition to the amount capitalised as part of
intangible assets of share-based payments granted which are not yet exercised
and issued as shares. During the six month period ended 30 November 2018 a
number of unexercised warrants expired resulting in a transfer of EUR244,196 from
this reserve to retained losses.
Retained losses
This reserve represents the accumulated losses absorbed by the Company to the
condensed consolidated statement of financial position date.
Notes
to and forming part of the condensed consolidated financial statements for the
six-month period ended 30 November 2018
1. Accounting policies
Reporting entity
Conroy Gold and Natural Resources plc (the "Company") is a company domiciled in
Ireland. The unaudited condensed consolidated financial statements for the
six-month period ended 30 November 2018 comprise the condensed financial
statements of the Company and its subsidiaries (together referred to as the
"Group").
Basis of preparation and statement of compliance
The condensed consolidated financial statements have been prepared in
accordance with International Accounting Standard ("IAS") 34: Interim Financial
Reporting.
The condensed consolidated financial statements do not include all the
information and disclosures required in the annual consolidated financial
statements, and should be read in conjunction with the Group's annual
consolidated financial statements as at 31 May 2018, which are available on the
Group's website - www.conroygold.com . The accounting policies adopted in the
presentation of the condensed consolidated financial statements are consistent
with those followed in the preparation of the Group's annual consolidated
financial statements for the year ended 31 May 2018. IFRS 15: Revenue from
Contracts with Customers ("IFRS 15") is effective for the first time in the
current interim period. The Directors have assessed that the impact of IFRS 15
on the condensed financial statements for the current period will not be
material.
The condensed consolidated financial statements have been prepared under the
historical cost convention, except for derivative financial instruments which
are measured at fair value at each reporting date.
The condensed consolidated financial statements are presented in Euro ("EUR"). EUR
is the functional currency of the Group.
The preparation of condensed consolidated financial statements requires the
Board of Directors and management to use judgements, estimates and assumptions
that affect the application of policies and reported amounts of assets,
liabilities, income and expenses. Actual results may differ from those
estimates. Estimates and underlying assumptions are reviewed on an ongoing
basis. Revisions to accounting estimates are recognised in the financial period
in which the estimate is revised and in any future financial periods affected.
Details of critical judgements are disclosed in the accounting policies
detailed in the annual consolidated financial statements.
The financial information presented herein does not amount to statutory
consolidated financial statements that are required by Chapter 4 part 6 of the
Companies Act 2014 to be annexed to the annual return of the Company. The
statutory consolidated financial statements for the financial year ended 31 May
2018 were annexed to the annual return and filed with the Registrar of
Companies. The audit report on those consolidated financial statements was
unqualified.
These Condensed Consolidated Financial Statements were authorised for issue by
the Board of Directors on 28 February 2019.
Going concern
The Group incurred a loss of EUR285,604 for the six-month period ended 30
November 2018 (six month period ended 30 November 2017: EUR458,222). The Group
had net current liabilities of EUR3,168,976 at that date (30 November 2017: EUR
3,106,456).
The Board of Directors have considered carefully the financial position of the
Group and in that context, have prepared and reviewed cash flow forecasts for
the period to 29 February 2020. In reviewing the proposed work programme for
exploration and evaluation assets and on the basis of the equity raised during
the period ended 30 November 2018, the results obtained from the exploration
programme and the prospects for raising additional funds as required, the Board
of Directors are satisfied that it is appropriate to prepare the condensed
consolidated financial statements on a going concern basis.
1. Accounting policies (continued)
New and amended standards adopted by the group
A number of new or amended standards became applicable for the current
reporting period. IFRS 15: Revenue from Contracts with Customers ("IFRS 15") is
effective for the first time in the current interim period. The Directors have
assessed that the impact of IFRS 15 on the condensed financial statements for
the current period will not be material.
Standards, interpretations and amendments issued but not yet effective
The following new standards, amendments to standards and interpretations have
been issued to date and are not yet effective for the financial period ended 30
November 2018, and have not been applied nor early adopted, where applicable,
in preparing these condensed financial statements:
* IFRS 9: Financial Instruments - effective for annual periods beginning 1
January 2018
* IFRS 16: Leases - effective for periods beginning 1 January 2019
* IFRS 17: Insurance Contracts - effective for periods beginning 1 January
2021
* IFRS10/IAS28: Sale or contribution of an asset between an investor and its
Associate of Joint Venture (Amendment) - Deferred indefinitely by amendments
made in December 2015.
The Board of Directors anticipate that the adoption of new standards,
interpretations and amendments that were in issue at the date of authorisation
of these condensed financial statements, but not yet effective, will have no
material impact on the condensed financial statements in the period of initial
application.
1. Loss per share
Basic earnings per share Six-month Six-month Year ended
period period 31 May 2018
ended 30 ended 30
November November
2018 2017 (Audited) EUR
(Unaudited) (Unaudited)
EUR EUR
Loss for the financial period/
year attributable to equity (285,604) (458,222) (745,485)
holders of the Company
Number of ordinary shares at
start of financial period/year 20,056,674 11,013,537 11,013,537
Number of ordinary shares issued
during the financial period/year 3,636,365 1,200,000 9,043,137
Number of ordinary shares at end
of financial period/year 23,693,039 12,213,537 20,056,674
Weighted average number of
ordinary shares for the purposes 22,023,947 11,424,773 15,379,675
of basic earnings per share
Basic loss per ordinary share (EUR0.0130) (EUR0.0401) (EUR0.0485)
Weighted average number of
ordinary shares for the purposes 22,023,947 11,424,773 18,839,251
of diluted earnings per share
Diluted loss per ordinary share (EUR0.0130) (EUR0.0401) (EUR0.0396)
1. Subsidiaries
Shares in subsidiary companies 30 November 30 November 31 May 2018
(Unlisted shares) at cost: 2018 2017
(Unaudited) (Unaudited) (Audited) EUR
EUR EUR
Conroy Gold Limited - 100% owned - - -
Trans International Mineral
Exploration Limited - 100% owned 2 2 2
2 2 2
The registered office of the above non-trading subsidiaries is 3300 Lake Drive,
Citywest Business Campus, Dublin 24, D24 TD21, Ireland.
Basis of consolidation
The condensed consolidated financial statements include the condensed financial
statements of Conroy Gold and Natural Resources plc and its subsidiaries.
Subsidiaries are entities controlled by the Company. Control exists when the
Group is exposed to or has the right to variable returns from its involvement
with the entity and has the ability to affect those returns through its control
over the entity. In assessing control, potential voting rights that presently
are exercisable are taken into account. The condensed financial statements of
subsidiaries are included in the condensed consolidated financial statements
from the date that control commences until the date that control ceases.
Intra-Group balances, and any unrealised income and expenses arising from
intra-Group transactions are eliminated in preparing the condensed consolidated
financial statements.
1. Intangible assets
Exploration and evaluation assets
Cost 30 November 30 November 2017 31 May 2018
2018 (Unaudited) EUR
(Unaudited) EUR (Audited) EUR
At 1 June 21,000,286 19,659,104 19,659,104
Expenditure during the financial
period/year
* License and appraisal costs 259,740 38,851 530,959
* Other operating expenses 227,292 283,995 511,746
* Equity settled share based - - 298,477
payments
At 30 November/31 May 21,487,318 19,981,950 21,000,286
Exploration and evaluation assets relate to expenditure incurred in the
development of mineral exploration opportunities. These assets are carried at
historical cost and have been assessed for impairment in particular with regard
to the requirements of IFRS 6: Exploration for and Evaluation of Mineral
Resources relating to remaining licence or claim terms, likelihood of renewal,
likelihood of further expenditure, possible discontinuation of activities as a
result of specific claims and available data which may suggest that the
recoverable value of an exploration and evaluation asset is less than its
carrying amount.
The Board of Directors have considered the proposed work programmes for the
underlying mineral resources. They are satisfied that there are no indications
of impairment.
The Board of Directors note that the realisation of the intangible assets is
dependent on further successful development and ultimate production of the
mineral resources and the availability of sufficient finance to bring the
resources to economic maturity and profitability.
1. Related party transactions
(a) Directors' loans 30 November 30 November 31 May 2018
2018 2017
(Unaudited) EUR (Unaudited) (Audited) EUR
EUR
At 1 June 185,343 277,287 277,287
Loans advanced - 69,736 89,736
Loan repayment - (166,680) (181,680)
At 30 November/31 May 185,343 180,343 185,343
The Directors' loan amounts relate to monies owed to Professor Richard Conroy
amounting to EUR135,918 (31 May 2018: EUR135,918), and Maureen T.A. Jones amounting
to EUR49,425 (31 May 2018: EUR49,425).
a. Apart from Directors' remuneration, and loans from Directors, there have
been no contracts or arrangements entered into during the six-month period
in which a Director of the Group had a material interest.
a. The Group shares accommodation with Karelian Diamond Resources plc which
have certain common Directors and shareholders. For the six-month period
ended 30 November 2018, the Group incurred costs totalling EUR74,968 (30
November 2017: EUR143,686) on behalf of Karelian Diamond Resources plc. These
costs were recharged to Karelian Diamond Resources plc by the Group. At 30
November 2018, the Group owed EUR117,514 (30 November 2017: EUR273,453) to
Karelian Diamond Resources plc. Amounts owed to Karelian Diamond Resources
plc are included within trade and other payables in the current and
previous financial periods/years.
1. Commitments and contingencies
The Group has received prospecting licences under the Republic of Ireland
Mineral Development Acts 1940 to 1995 for areas in Monaghan and Cavan. It has
also received licences in Northern Ireland for areas in Armagh in accordance
with the Mineral Development Act (Northern Ireland) 1969.
At 30 November 2018, the Group had work commitments of approximately EUR340,000
for the forthcoming year, in respect of prospecting licences held (31 May 2018:
EUR440,000).
1. Approval of the Condensed Consolidated Financial Statements
These Condensed Consolidated Financial Statements were approved by the Board of
Directors on 27 February 2019. A copy of the Condensed Consolidated Financial
Statements will be available on the Group's website www.conroygold.com on 28
February 2019.
END
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