TIDMMTL
RNS Number : 2635S
Metals Exploration PLC
29 September 2017
METALS EXPLORATION PLC
INTERIM RESULTS FOR THE SIX MONTHSED 30 June 2017
Metals Exploration plc (AIM: MTL) ("Metals Exploration" or "the
Company"), the natural resources exploration and development
company with assets in the Pacific Rim region, announces its
interim results for the six months ended 30 June 2017.
Chairman's Statement
The six months ended 30 June 2017 saw a number of positive
developments for the Runruno Project that confirmed the long-term
potential of the project. Frustratingly, technical issues and
operator errors in the second quarter adversely impacted the
stability of the BIOX(R) circuit and prevented the achievement of a
stable, sustained ramp up of gold production. Following the period
end and as announced on 19 September the Company experienced
further operational challenges with the BIOX(R) circuit passivating
after a period of encouraging performance in July and August. We
continue to work to ramp up of the BIOX(R) circuit to design
levels.
The resultant lower than anticipated gold production during the
six months continued to constrain the cash resources available to
the Group to sustain operations and meet its external debt service
obligations. This necessitated the Group drawing down additional
shareholder loans totalling US$12 million in the six months to
supplement the cash generated from the sale of gold produced by the
Runruno Gold Project. Post period end, a mezzanine facility of US
$21 million has been agreed with Runruno Holdings Limited and MTL
(Luxembourg) Sarl. Proceeds from the facility will be used to repay
two short term loans received from the same shareholders in May and
June 2017 totalling US $12 million, with the balance being utilised
to facilitate a capital and interest payment to the Group's senior
lenders.
Gold production during the period subsequent to 30 June 2017
whilst improving has continued to be below anticipated levels due
to the slower than anticipated ramp up of the BIOX(R) circuit to
design levels.
There were a number of developments during the six months that
will contribute positively to completing the ramp up of gold
production to design levels:
-- There has been a marked improvement in the outlook for the
mining industry in the Philippines following the appointment of a
new acting Secretary of the Department of Environment and Natural
Resources ("DENR"), the government department responsible for
regulating the industry. The industry is now hopeful of a period of
stability for those companies such as ourselves, who are committed
to responsible, world class mining, environmental and stakeholder
practices.
-- The Runruno Project was granted permits allowing "drive in
drive out" blasting operations to be undertaken pending the issue
of the site magazine permits. The ability to conduct blasting
operations has reduced the wear and tear on the Company's mining
fleet and has eliminated the need for the Project to modify its
mining plans to "work-around" hard rock sections of the pit. On the
13(th) of September 2017, the Company was granted site magazine
permits which now allows for the storage of explosives onsite and
more efficiency in our blasting practices.
-- At times when operations were stable and sulfidic ore was
being made available to the plant, the processing performance
demonstrated improvements in operating performance. However,
interruptions caused by power outages and operator errors during
the second quarter dropped the overall average performance. These
have been followed by further challenges in the BIOX circuit which
passivated in early September. The Company is working to remedy the
position and seeking to ramp up to design levels.
-- The BIOX(R) circuit achieved 30% of design throughput at the
end of the half-year increasing to 55% in July before an operator
error delayed the BIOX(R) ramp up.
-- Subsequent to 30 June 2017, the Runruno Project was
successful in obtaining the third tree cutting permit. The delay in
receiving this permit prevented the establishment of a planned
alternate waste dump for the disposal of wet and overflow waste
materials limiting the mine's ability to produce waste during the
wet season. The granting of tree cutting permit will provide
increased flexibility to mining operations by increasing the waste
disposal options available to mining operations, particularly
during the wet season.
The key operating metrics for the six months ended 30 June 2017
and for the Project to Date are summarised in the following
table:
Key metric Unit Quarter Quarter Year Period Project
of measure ended ended to date to 31 to date
30 31 Mar 2017 Dec
June 2017 2016
2017
------------------- ------------- ---------- ---------- ---------- ---------- -----------
Mining activities
Ore mined Tonnes 399,024 545,734 944,758 490,558 1,435,316
Waste mined Tonnes 2,178,921 2,162,074 4,340,995 7,920,205 12,261,200
Total material
movements Tonnes 2,577,945 2,707,808 5,285,753 8,410,763 13,696,516
---------- ---------- ---------- ---------- -----------
waste
Strip ratio / ore 5.46 3.96 4.59 16.15 8.54
Au grade grams
mined / tonne 1.35 1.56 1.47 1.42 1.45
Contained.
ounces gold
mined Ounces 17,319 27,371 44,690 22,396 67,086
S Grade % 0.78 0.80 0.79 0.29 0.62
Processing
activities
Tonnes milled Tonnes 425,303 389,724 815,027 468,170 1,283,197
S Feed grade % 0.74 0.34 0.55 0.53 0.54
grams
Au feed grade / tonne 1.33 1.29 1.31 1.29 1.30
Gold recovery % 48% 56% 52% 51% 52%
Change in
GIC Ounces 1,410 466 1,876 1,737 3,613
Gold in feed Ounces 18,186 16,199 34,385 19,417 53,802
Gold in tails Ounces (9,457) (7,169) (16,626) (9,514) (26,140)
Gold recovered Ounces 7,319 8,366 15,685 8,166 23,851
Gold sold Ounces 7,557 8,342 15,899 6,405 22,304
Achieved US$
gold price / ounce 1,216 1,255 1,236 1,156 1,213
Notes to above table.
S - Sulphur, Au - Gold, GIC - Gold in Circuit
Facility Agreement capital and interest payments:
On 27 January 2017, the restructuring of the Group's senior
finance facility with Hong Kong Shanghai Banking Corporation
Limited and BNP Paribas (Singapore) ("the Senior Lenders") that was
agreed on 15 December 2016 became effective. The terms of the
restructuring were described at page 18 of the Annual Report for
the year ended 31 December 2016.
Set out below is a summary of the restructured principal
repayment schedule:
Payment Date Principal
payment due
US$
-------------------- -------------
31 Mar 17 $4,240,000
-------------------- -------------
30 Jun 17 $6,480,000
-------------------- -------------
30 Sep 17 $6,480,000
-------------------- -------------
31 Dec 17 $6,480,000
-------------------- -------------
31 Mar 18 $6,480,000
-------------------- -------------
30 Jun 18 $7,290,000
-------------------- -------------
30 Sep 18 $7,290,000
-------------------- -------------
31 Dec 18 $8,100,000
-------------------- -------------
31 Mar 19 $8,100,000
-------------------- -------------
30 Jun 19 $8,100,000
-------------------- -------------
30 Sep 19 $8,100,000
-------------------- -------------
31 Dec 19 $3,860,000
-------------------- -------------
Total loan
facility $81,000,000
------------ ----------------
During the six months ended 30 June 2017 the Group paid the
principal repayments that were due on 31 March 2017 and 30 June
2017. As at 30 June 2017, the principal outstanding under the
facility was US$70.28 million.
During the six months the Group drew down an additional USS12
million in advances from its shareholders. As at 30 June 2017 the
principal value of shareholder loans was US$17 million.
Forward gold sales hedging contracts:
As at 30 June 2017, the Group had the following outstanding
forward gold sales contracts:
Forward Forward
Price Price
Ounces by Contract by Contract
Fixing Settlement of - HSBC - BNPP
date Date gold US$ US$
------------ ------------ ------- ------------- -------------
29/09/2017 03/10/2017 7,500 $1,286.88 $1,287.49
------------ ------------ ------- ------------- -------------
29/12/2017 03/01/2018 7,500 $1,286.88 $1,287.49
------------ ------------ ------- ------------- -------------
30/03/2018 04/04/2018 7,500 $1,286.88 $1,287.49
------------ ------------ ------- ------------- -------------
29/06/2018 03/07/2018 7,500 $1,286.88 $1,287.49
------------ ------------ ------- ------------- -------------
30,000
=======
Mezzanine Facility
The mezzanine facility is repayable within 60 months of the
initial draw down.
Corporate
On 18 January 2017 the Company appointed Canaccord Genuity
Limited as its Nomad and Broker.
On 7 April 2017 Mr. Jeremy Ayre resigned from his position as
non-executive director from the Company and the board of directors
wished Jeremy every success in his future endeavours.
Ian Holzberger
Executive Chairman
CONDENSED CONSOLIDATED STATEMENT OF TOTAL COMPREHENSIVE INCOME
for the six months ended 30 June 2017
6 month period 6 month period Year
ended ended ended
30 June 30 June 31 December
2017 2016 2016
(unaudited) (unaudited) (audited)
Notes GBP GBP GBP
Continuing
Operations
Revenue 15,738,136 - 5,768,928
Cost of sales (15,738,136) - (5,768,928)
------------------------------------ -------------------------- --------------------------
Gross loss - - -
Administrative
expenses (4,563,886) (3,781,295) (9,513,900)
------------------------------------ -------------------------- --------------------------
Operating loss (4,563,886) (3,781,295) (9,513,900)
------------------------------------ -------------------------- --------------------------
Finance income
and similar
items 278 207 471
Finance costs (2,293,621) (921,079) (4,238,490)
Fair value loss
on forward
sales
contracts 4 (2,933,840) (11,438,864) (6,680,962)
Fair value loss
on interest
rate swaps 4 (15,366) (114,937) (43,875)
Share of losses
of associates (8,932) (12,440) 7,964
------------------------------------ -------------------------- --------------------------
Losses before
tax (9,815,367) (16,268,408) (20,468,792)
Taxation (15,003) 3,816,934 2,436,251
------------------------------------ -------------------------- --------------------------
Losses for the
period (9,830,370) (12,451,474) (18,032,541)
Other
comprehensive
income:
Items that may be re-classified subsequently to profit or
loss:
Exchange
differences on
translating
foreign
operations (10,413,831) 8,957,921 17,565,678
Remeasurement
of pension
liabilities - - 25,872
Total
comprehensive
loss for the
period (20,244,201) (3,493,553) (440,991)
------------------------------------ -------------------------- --------------------------
Loss for the
period
attributable
to:
Equity holders
of the parent (9,830,370) (12,451,474) (18,032,541)
==================================== ========================== ==========================
Total
comprehensive
loss
attributable
to:
Equity holders
of the parent (20,244,202) (3,493,553) (440,991)
==================================== ========================== ==========================
Loss per share:
Basic and
diluted 5 (0.475)p (0.751)p (1.013)p
CONDENSED CONSOLIDATED INTERIM BALANCE SHEET
as at 30 June 2017
As at 30 June As at 30 June As at 31 December
2017 2016 2016
Unaudited Unaudited Audited
GBP GBP GBP
Non-current assets
Property, plant and equipment 172,983,370 170,040,927 186,598,682
Goodwill 1,010,817 1,010,816 1,010,816
Other intangible assets 9,846,206 8,283,267 10,252,068
Derivative asset - - 1,427,473
Investment in associate companies 96,624 110,860 105,556
Trade and other receivables 1,959,624 2,595,900 2,093,155
185,896,641 182,041,770 201,487,750
-------------- -------------------------- ------------------
Current assets
Other assets 386,073 - 499,264
Derivative asset 700,880 551,865 2,854,948
Trade and other receivables 240,027 791,422 2,641,167
Cash and cash equivalents 1,261,657 1,585,249 5,986,493
2,588,637 2,928,536 11,981,872
-------------- -------------------------- ------------------
Non-current liabilities
Loans (36,939,441) (30,923,944) (23,669,976)
Derivative liability - (1,189,512) (10,076)
Deferred tax liabilities (2,120,843) (632,553) (2,259,897)
Provision for mine rehabilitation (1,440,485) (1,458,795) (1,505,708)
(40,500,769) (34,204,804) (27,445,657)
-------------- -------------------------- ------------------
Current liabilities
Derivative liability (9,535) (482,842) -
Trade and other payables (5,070,084) (4,063,060) (6,065,077)
Loans - current portion (30,390,288) (33,491,712) (47,200,085)
(35,469,907) (38,037,614) (53,265,162)
-------------- -------------------------- ------------------
Net assets 112,514,602 112,727,888 132,758,803
============== ========================== ==================
Equity
Share capital 20,713,347 17,313,059 20,713,347
Share premium account 145,144,316 131,566,251 145,144,316
Shares to be issued reserve 3,652,155 3,652,155 3,652,155
Acquisition of non-controlling interest reserve (3,785,077) (3,785,077) (3,785,077)
Translation reserve 10,686,536 12,492,610 21,100,367
Remeasurement reserve 25,872 - 25,872
Profit and loss account (63,922,547) (48,511,110) (54,092,177)
Equity attributable to equity holders of the
parent 112,514,602 112,727,888 132,758,803
============== ========================== ==================
CONDENSED CONSOLIDATED INTERIM STATEMENT OF CHANGES IN EQUITY
for the six months ended 30 June 2017
Share Shares to Translation Acquisition of Profit and
capital Share be reserve Non-controlling loss
premium issued interest Remeasurement account
account reserve reserve Reserve Total equity
GBP GBP GBP GBP GBP GBP GBP GBP
Balance at 1
January 2017 20,713,347 145,144,316 3,652,155 21,100,367 (3,785,077) 25,872 (54,092,177) 132,758,803
----------- ------------ ---------- ------------- ---------------- -------------- ------------- --------------
Exchange
differences on
translating
foreign
operations - - - (10,413,831) - - - (10,413,831)
Loss for the
period - - - - - - (9,830,370) (9,830,370)
----------- ------------ ---------- ------------- ---------------- -------------- ------------- --------------
Total
comprehensive
income for
the period - - - (10,413,831) - - (9,830,370) (20,244,201)
Issue of equity
share capital - - - - - - - -
Share issue
expenses - - - - - - - -
Balance at 30
June 2017
(unaudited) 20,713,347 145,144,316 3,652,155 10,686,536 (3,785,077) 25,872 (63,922,547) (112,514,602)
----------- ------------ ---------- ------------- ---------------- -------------- ------------- --------------
Equity is the aggregate of the following:
-- Share capital; being the nominal value of shares issued.
-- Share premium account; being the excess received over the
nominal value of shares issued less direct issue costs.
-- Shares to be issued reserve; being the credit side of the
entry relating to the expense recognised in the income statement
for share based remuneration.
-- Translation reserve; being the foreign exchange differences
on the translation of foreign subsidiaries.
-- Acquisition of non-controlling interests reserve; being an
acquisition of 15% of FCF Minerals Corporation's shares after
previous acquisitions which had provided the Group with control of
the board of the subsidiary company.
-- Profit and loss account; being the cumulative loss attributable to equity shareholders.
CONDENSED CONSOLIDATED INTERIM STATEMENT OF CHANGES IN EQUITY
for the six months ended 30 June 2016
Shares Acquisition
to of Profit
Share be non-controlling and
Share premium issued Translation interest loss
capital account reserve reserve reserve account Total equity
GBP GBP GBP GBP GBP GBP GBP
------------- ------------ ---------- ------------ ---------------- ------------- -------------
Balance as at
1 January
2016 15,830,054 128,751,738 3,652,155 3,534,689 (3,785,077) (36,059,636) 111,923,923
------------- ------------ ---------- ------------ ---------------- ------------- -------------
Exchange
differences
on
translating
foreign
operations - - - 8,957,921 - - 8,957,921
Loss for the
period - - - - - (12,451,474) (12,451,474)
Total
comprehensive
loss for the
period - - - 8,957,921 - (12,451,474) (3,493,553)
------------- ------------ ---------- ------------ ---------------- ------------- -------------
Issue of
equity share
capital 1,483,005 2,817,710 - - - - 4,300,175
Share issue
expenses - (3,197) - - - - (3,197)
Balance as at
30 June 2016
(unaudited) 17,313,059 131,566,251 3,652,155 12,492,610 (3,785,077) (48,511,110) 112,727,888
------------- ------------ ---------- ------------ ---------------- ------------- -------------
Equity is the aggregate of the following:
-- Share capital; being the nominal value of shares issued.
-- Share premium account; being the excess received over the
nominal value of shares issued less direct issue costs.
-- Shares to be issued reserve; being the credit side of the
entry relating to the expense recognised in the income statement
for share based remuneration.
-- Translation reserve; being the foreign exchange differences
on the translation of foreign subsidiaries.
-- Acquisition of non-controlling interests reserve; being an
acquisition of 15% of FCF Minerals Corporation's shares after
previous acquisitions which had provided the Group with control of
the board of the subsidiary company.
-- Profit and loss account; being the cumulative loss attributable to equity shareholders.
CONDENSED CONSOLIDATED INTERIM STATEMENT OF CHANGES IN EQUITY
for the year ended 31 DECEMBER 2016
Acquisition of
Share Shares to non-controlling
Share premium be issued Translation interest Profit and Remeasurement
capital account reserve reserve reserve loss account Reserve Total equity
GBP GBP GBP GBP GBP GBP GBP GBP
Balance at 1
January 2016 15,830,054 128,751,738 3,652,155 3,534,689 (3,785,077) (36,059,636) - 111,923,923
----------- ------------ ---------- ------------ ---------------- ------------- -------------- -------------
Exchange
differences on
translating
foreign
operations - - - 17,565,678 - - - 17,565,678
Movement in
remeasurement
reserve - - - - - - 25,872 25,872
Loss for the
year - - - - - (18,032,541) - (18,032,541)
Total
comprehensive
income for the
year - - - 17,565,678 - (18,032,541) 25,872 (440,991)
----------- ------------ ---------- ------------ ---------------- ------------- -------------- -------------
Issue of equity
share capital 4,883,293 16,418,858 - - - - - 21,302,151
Share issue
expenses - (26,280) - - - - - (26,280)
Balance at 31
December 2016
(audited) 20,713,347 145,144,316 3,652,155 21,100,367 (3,785,077) (54,092,177) 25,782 132,758,803
----------- ------------ ---------- ------------ ---------------- ------------- -------------- -------------
Equity is the aggregate of the following:
-- Share capital; being the nominal value of shares issued.
-- Share premium account; being the excess received over the
nominal value of shares issued less direct issue costs.
-- Shares to be issued reserve; being the credit side of the
entry relating to the expense recognised in the income statement
for share based remuneration.
-- Translation reserve; being the foreign exchange differences
on the translation of foreign subsidiaries.
-- Acquisition of non-controlling interest reserve; being an
acquisition of 15% of FCF Minerals Corporation's shares after
previous acquisitions which had provided the Group with control of
the board of the subsidiary company.
-- Profit and loss account; being the cumulative loss attributable to equity shareholders.
CONDENSED CONSOLIDATED INTERIM CASH FLOW STATEMENT for the
period ended 30 June 2017
6 month period 6 month period Year
ended ended ended
30 June 2017 30 June 2016 31 December 2016
Unaudited Unaudited Audited
GBP GBP GBP
(Loss)/gain before taxation (9,815,367) (16,268,408) (20,468,792)
Fair value loss/ (gain) on forward sales
contracts 2,933,840 11,438,864 6,680,962
Fair value loss/ (gain) on interest rate
swaps 15,366 114,937 43,875
Depreciation 714,594 1,057,981 1,810,940
Amortisation 45,916 74,405 64,724
Share of losses of associates 8,932 12,440 (7,964)
Net finance costs 2,293,624 920,809 4,238,490
(Increase)/decrease in receivables 2,534,672 (48,415) (1,702,251)
(Increase)/ decrease in other assets 113,192 - (499,264)
Increase/(decrease) in payables (1,009,998) (1,278,105) 1,300,604
--------------- ---------------------------- -----------------
Cash used in operating activities (2,165,229) (3,975,492) (8,538,676)
--------------- ---------------------------- -----------------
Interest received 278 207 471
Interest paid (2,155,576) (444,663) (150,229)
--------------- ---------------------------- -----------------
Net cash used in operating activities (4,320,527) (4,419,948) (8,688,434)
Investing activities
Purchase of property, plant and equipment (2,041,927) (7,973,242) (20,177,336)
Purchase of intangible assets (50,096) (145,278) (2,396,371)
--------------- ---------------------------- -----------------
Net cash used in investing activities (2,092,023) (8,118,520) (22,573,707)
Financing activities
Repayment of borrowings (8,518,876) (1,488,521) (1,475,830)
Proceeds from borrowings 9,229,563 - -
Net proceeds from issue of share capital - 4,297,518 21,275,871
Proceeds from settlement of gold forward
contracts 504,952 1,041,465 1,468,012
--------------- ---------------------------- -----------------
Net cash arising from financing activities 1,215,639 3,850,462 21,268,053
Net increase/(decrease) in cash and cash
equivalents (5,196,911) (8,688,006) (9,994,088)
--------------- ---------------------------- -----------------
Cash and cash equivalents at beginning of
year 5,986,493 10,969,449 10,969,449
Foreign exchange difference 472,075 (696,194) 5,011,132
Cash and cash equivalents at end of year 1,261,657 1,585,249 5,986,493
=============== ============================ =================
Notes to the condensed consolidated interim financial
statements
1. General information
Metals Exploration plc is the parent company of the Group. Its
shares are listed on the AIM market of the London Stock Exchange.
The registered address of Metals Exploration plc is 200 Strand,
London, WC2R 1DJ.
These condensed consolidated interim financial statements were
approved by the Board of Directors on 28 September, 2017.
The results for the year ended 31 December 2016 have been
audited whilst the results for the six months ended 30 June 2016
and 30 June 2017 are unaudited.
The financial information set out in this interim report does
not constitute statutory accounts as defined in Section 434 of the
Companies Act 2006. The Group's statutory accounts for the year
ended 31 December 2016 which were prepared under International
Financial Reporting Standards ("IFRS") as adopted for use in the
European Union, were filed with the Registrar of Companies. The
auditors reported on these accounts, their report was unqualified
and did not contain a statement under either Section 498 (2) or
Section 498 (3) of the Companies Act 2006. The auditors drew
attention to a material uncertainty regarding Going Concern by way
of emphasis.
2. Basis of preparation
These condensed consolidated interim financial statements are
for the six month period ended 30 June 2017, using accounting
policies consistent with IFRS as adopted for use in the European
Union with the exception of IAS 34: Interim Financial Reporting.
IFRS is subject to amendment and interpretation by the
International Accounting Standards Board ("IASB") and the IFRS
Interpretations Committee and there is an ongoing process of review
and endorsement by the European Commission. The financial
information has been prepared on the basis of IFRS that the Board
of Directors expect to be applicable as at 31 December 2017.
These condensed consolidated interim financial statements have
been prepared under the historical cost convention, except for the
revaluation of certain financial instruments.
3. Going Concern
These condensed consolidated interim financial statements of the
Group have been prepared on a going concern basis, which
contemplates the continuity of business activities and the
realisation of assets and the settlement of liabilities in the
normal course of business.
As at 30 June 2017, the Group's current liabilities exceeded its
current assets by GBP32,881,270 due primarily to the portion of the
Group's external borrowings that is scheduled to be repaid by 30
June 2017. The Group reported a loss after tax of GBP9,830,370 for
the six months ended 30 June 2017 and cash outflows from operations
of GBP4,320,527 for the six months ended 30 June 2017.
Over the next financial period, the continuing viability of the
Group and its ability to operate as a going concern is dependent
upon the ability of the Group to operate the Runruno Gold Project
successfully so as to generate sufficient cash flows from the
Project to enable the Group to settle its liabilities as they fall
due.
As a consequence of the above matters, the directors have
concluded that a material uncertainty exists that may cast
significant doubt upon the Group's ability to continue as a going
concern and that, therefore, the Group and the Company may be
unable to realise its assets and discharge their liabilities in the
normal course of business and at the amounts stated in these
interim result.
Nevertheless, after making enquiries and considering the
uncertainties described above, the directors believe that there are
reasonable grounds to believe that the use of the going concern
basis remains appropriate as there is a reasonable expectation that
the Group:
-- will achieve forecast levels of gold production as the
testing and debugging phase of operations is completed;
-- will continue to have the support of its financiers; or
-- if the above are considered unlikely to be achieved, then the
Group may seek alternative financing from its shareholders.
These condensed consolidated interim financial statements do not
include adjustments relating to the recoverability and
classification of recorded set amounts, or to the amounts and
classifications of liabilities that might be necessary should the
Group not continue as a going concern.
4. Hedging
Under the terms of the debt financing facility FCF Minerals
Corporation, a wholly owned subsidiary of the Company, entered into
two hedging arrangements with each of the facility banks: an
interest rate hedge for approximately 40% of the interest exposure;
and a gold forward sales programme representing a total of 90,000
ounces of gold. 30,000 ounces of forward sales contracts remain
open as at 30 June 2017. The movement in fair value of these
derivative financial instruments is charged to the condensed
consolidated statement of total comprehensive income and derivative
financial assets and liabilities recognised on the condensed
consolidated balance sheet. The Group has elected not to apply
hedge accounting.
5. Loss per share
The loss per share was calculated on the basis of net loss
attributable to equity shareholders divided by the weighted average
number of ordinary shares.
6 month period ended 30 6 month period ended 30 Year ended 31 December 2016
June 2017 June 2016
(unaudited) (unaudited) (audited)
GBP GBP GBP
Loss
Net loss attributable to
equity shareholders for
the purpose of basic and
diluted loss per
share (9,830,370) (12,451,474) (18,032,541)
----- ----- -----
Number of shares
Weighted average number of
ordinary shares for the
purpose of basic and
diluted loss per share 2,071,734,587 1,657,155,614 1,779,329,876
----- ----- -----
Basic and diluted loss per
share (0.475)p (0.751)p (1.013)p
----- ----- -----
The basic and diluted loss per share is the same, as the
exercise of staff share options and warrants would reduce the loss
per share and therefore, are anti-dilutive.
6. Subsequent Events
A mezzanine facility has been agreed with Runruno Holdings
Limited and MTL (Luxembourg) Sarl for US $21 million. Proceeds from
the facility will be used to repay two short term loans received
from the same shareholders in May and June 2017 totalling US $12
million, with the balance being utilised to facilitate a capital
and interest payment to the Group's senior lenders, due on 29
September 2017.
The main commercial terms of the facility are summarised as
follows:
-- Headline interest rate is 8% plus 3 months' US LIBOR;
-- Capitalised interest attracts an additional 4% margin.
Interest may be capitalised for the first twelve months of the
facility at the election of the Company;
-- The loan is repayable within 60 months of being drawn down;
-- A Production Fee is payable over a 60 month period in
quarterly instalments equivalent to 1.3% of the gross revenue from
gold sales of FCF Minerals Corporation for a period of 60 months
from first Drawdown, where the minimum quarterly fee payable is
equal to $250,000 and the maximum quarterly fee is capped at US
$500,000;
-- 100 million warrants in total are exercisable by the
shareholders before the end of the sixth anniversary of the signing
of the facility agreement;
-- 75 million warrants have a strike price of 5.5 pence and 25
million have a strike price of 7.0 pence
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR SEFFSUFWSELU
(END) Dow Jones Newswires
September 29, 2017 06:45 ET (10:45 GMT)
Metals Exploration (LSE:MTL)
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