TIDMORE
RNS Number : 0094L
Orogen Gold PLC
28 September 2016
28 September 2016
Orogen Gold plc
("Orogen" or the "Company")
Interim Results for the six months ended 30 June 2016
Orogen Gold plc (AIM: ORE), the AIM quoted gold exploration
company, announces its interim results for the six months ended 30
June 2016.
Enquiries:
Orogen Gold plc C/o Walbrook
Colin Bird, CEO PR
Alan Mooney, FD
--------------------------------- ------------
Cairn Financial Advisers
LLP (Nominated Adviser) +44 (0) 20
Liam Murray / Sandy Jamieson 7148 7900
--------------------------------- ------------
Beaufort Securities Limited
(Broker) +44 (0) 20
Jon Belliss 7382 8300
--------------------------------- ------------
Walbrook PR (Public Relations
and Investor Relations) +44 (0) 20
Paul Cornelius / Gary Middleton 7933 8780
--------------------------------- ------------
About Orogen Gold
Orogen Gold plc is a UK public company quoted on the London
Stock Exchange AIM market (ticker: ORE). The Company is focused on
gold exploration and is currently operating two gold exploration
projects: a) at Mutsk in Armenia and b) at Silverton in Nevada,
USA. The Mutsk gold project in Armenia was optioned by Orogen early
in 2013 to follow-up reports of a new epithermal discovery within
an established gold district. In Nevada, an earn-in agreement was
recently announced covering the Silverton gold-silver prospect,
giving Orogen the right to earn in to an initial 51% interest in
the property. Anomalous gold values are recorded from bedrock
across much of the property, but previous drilling is not
considered to have adequately tested the potential gold
sources.
Chairman's statement
The period under review showed slightly improving metal prices
with a more favourable sentiment towards natural resource
companies. The major mining companies in general showed significant
gains whilst junior mining companies with good projects were able
to access funds for development, although still limited.
On 27 June 2016 the Company announced the signing of an earn-in
agreement over the Silverton gold and silver property in Nevada,
USA. This agreement provides exploration rights on a highly
prospective gold/silver project, which has good technical history.
The Company will commence drilling operations early in the fourth
quarter 2016.
Towards the end of July, the Company raised GBP350,000 in an
equity funding which was implemented to enable the final stage of
earn-in at the Mutsk property in Armenia. On 31 August 2016 we
advised our partners on the project that the US$2.5 million earn-in
had been completed and requested that our 80% interest be
registered.
The Company recently announced that our drilling on the Mutsk
property had been successful and the "size footprint" of the
property had been doubled. The exploration area is open to the
north and south and extension possibilities exist to the east.
Financial and Corporate Review
At 30 June 2016 cash stood at GBP652,000 (31 December 2015:
GBP921,000). The loss for the period amounted to GBP171,000 (6
months to 30 June 2015: GBP181,000).
The Group seeks to maintain a low cost structure and actively
manages the corporate overhead to reflect our activity levels and
the broader difficult funding environment for junior exploration
companies.
Outlook
The Company has two large gold projects in two different
geological environments on two continents and is well placed to
take advantage of the renewed investor interest. Both of our
properties exhibit potential to be significant open pit mines and
as such we expect to receive corporate interest as they
progress.
At Mutsk we are currently modelling all of our results to
sharpen our understanding of the nature of the mineralisation and
its structural placement. This is a relatively low cost exercise,
which will improve our drill targeting in the future. On completion
of the modelling we plan to carry out further drilling to extend
the limits of the gold deposit and progress on to in-fill drilling
to define a resource. With 80% of the Mutsk project now earned,
Orogen will be driving the project forward with input from the
former Georaid CJSC principles who will continue to assist us with
managing logistics and local relations on the ground and have an
option to maintain their 20% interest in the project by
contributing pro-rata to future work programs. We are conscious to
minimise our operational cost base particularly when there is less
field activity during the winter period but will use this time
productively collating all the information from the drilling to
date.
At Silverton we intend to carry out a small reconnaissance
programme directed towards testing the highly prospective north
south shear zone and surrounding areas. The results of this
programme should allow us to test the drivers for gold
mineralisation as well as testing the potential for a deeper
situated gold feeder system.
ADAM REYNOLDS
Non-Executive Chairman
27 September 2016
Consolidated statement of profit or loss and other comprehensive
income
For the six months ended 30 June 2016
Unaudited Unaudited Audited
6 months 6 months 12 months
to to to
30 June 30 June 31 December
2016 2015 2015
GBP'000 GBP'000 GBP'000
----------------------------------- ---------- ---------- -------------
General and administrative (154) (184) (356)
Impairment of exploration
and evaluation assets (9) - (534)
Share based payments (10) - (5)
Group operating loss (173) (184) (895)
Interest received 2 3 5
----------------------------------- ---------- ---------- -------------
Loss on ordinary activities
before taxation (171) (181) (890)
Tax on loss on ordinary - - -
activities
----------------------------------- ---------- ---------- -------------
Loss for the year from continuing
operations (171) (181) (890)
Attributable to:
Equity holders of the parent (171) (181) (677)
Non-controlling interests - - (213)
----------------------------------- ---------- ---------- -------------
Group loss for the period (171) (181) (890)
Exchange translation differences - (1) (2)
----------------------------------- ---------- ---------- -------------
Total comprehensive loss
for the period (171) (182) (892)
Attributable to:
Owners of the parent (171) (182) (679)
Non-controlling interests - - (213)
----------------------------------- ---------- ---------- -------------
(171) (182) (892)
----------------------------------- ---------- ---------- -------------
Loss per share:
Loss per share - basic and
diluted, attributable to
ordinary equity holders
of the parent (pence) (0.003) (0.005) (0.02)
Consolidated statement of financial position
As at 30 June 2016
Unaudited Unaudited Audited
30 June 30 June 31 December
2016 2015 2015
GBP'000 GBP'000 GBP'000
------------------------------- ---------- ---------- -------------
Assets
Non-current assets
Exploration and evaluation
assets 1,670 1,926 1,577
Property, plant and equipment 2 2 2
------------------------------- ---------- ---------- -------------
Total non-current assets 1,672 1,928 1,579
------------------------------- ---------- ---------- -------------
Current assets
Trade and other receivables 27 27 22
Cash and cash equivalents 652 851 921
Total current assets 679 878 943
------------------------------- ---------- ---------- -------------
Total assets 2,351 2,806 2,522
------------------------------- ---------- ---------- -------------
Equity and liabilities
Equity
Share capital 4,418 4,237 4,418
Share premium 12,181 11,950 12,181
Other reserves 635 621 625
Retained earnings (14,936) (14,269) (14,765)
------------------------------- ---------- ---------- -------------
Equity attributable to
owners of the parent 2,298 2,539 2,459
Non-controlling interests - 210 -
------------------------------- ---------- ---------- -------------
Total equity 2,298 2,749 2,459
------------------------------- ---------- ---------- -------------
Current liabilities
Trade and other payables 53 57 63
------------------------------- ---------- ---------- -------------
Total current liabilities 53 57 63
------------------------------- ---------- ---------- -------------
Total liabilities 53 57 63
------------------------------- ---------- ---------- -------------
Total equity and liabilities 2,351 2,806 2,522
------------------------------- ---------- ---------- -------------
Consolidated cash flow statement
For the six months ended 30 June 2016
Unaudited Unaudited Audited
6 months 6 months 12 months
to to to 31
30 June 30 June December
2016 2015 2015
GBP'000 GBP'000 GBP'000
--------------------------------- ---------- ---------- -----------
Cash flows from operating
activities
Group operating loss (173) (184) (895)
Share based payments 10 - 5
(Increase)/decrease in trade
and other receivables (5) 31 36
Decrease in trade and other
payables (10) (12) (4)
Impairment of exploration
and evaluation assets 9 - 534
Net cash flow from operating
activities (169) (165) (324)
--------------------------------- ---------- ---------- -----------
Cash flow from investing
activities
Expenditure on exploration
and evaluation assets and
project earn-ins (102) (106) (292)
Interest received 2 3 5
--------------------------------- ---------- ---------- -----------
Net cash flow from investing
activities (100) (103) (287)
--------------------------------- ---------- ---------- -----------
Cash flow from financing
activities
Net proceeds from issue of
equity instruments - - 411
--------------------------------- ---------- ---------- -----------
Net cash flow from financing
activities - - 411
--------------------------------- ---------- ---------- -----------
Net change in cash and cash
equivalents (269) (268) (200)
Net foreign exchange difference - 1 3
Cash and cash equivalents
at beginning of period 921 1,118 1,118
--------------------------------- ---------- ---------- -----------
Cash and cash equivalents
at end of period 652 851 921
--------------------------------- ---------- ---------- -----------
Consolidated statement of changes in equity
For the six months ended 30 June 2016
Share Foreign
based currency Non-controlling
Share Share payment Shares Retained translation interests Total
capital premium reserve to earnings reserve Total equity
be
issued
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------- --------- --------- --------- -------- ---------- ------------- -------- ----------------- --------
Balance at
1 January
2015 4,222 11,827 592 138 (14,088) 30 2,721 200 2,921
Loss for
the period - - - - (181) - (181) - (181)
Issue of
share
capital 15 123 - - - - 138 - 138
Shares to
be issued - - - (138) - - (138) - (138)
Other
reserve
movements - - - - - - - 10 10
Foreign
exchange
translation
reserve - - - - - (1) (1) - (1)
Balance at
30 June
2015 4,237 11,950 592 - (14,269) 29 2,539 210 2,749
------------- --------- --------- --------- -------- ---------- ------------- -------- ----------------- --------
Balance at
1 July 2015 4,237 11,950 592 - (14,269) 29 2,539 210 2,749
Loss for
the period - - - - (496) - (496) (210) (706)
Issue of
share
capital 181 231 - - - - 412 - 412
Foreign
exchange
translation
reserve - - - - - (1) (1) - (1)
Share based
payments - - 5 - - - 5 - 5
Balance at
31 December
2015 4,418 12,181 597 - (14,765) 28 2,459 - 2,459
------------- --------- --------- --------- -------- ---------- ------------- -------- ----------------- --------
Balance at
1 January
2016 4,418 12,181 597 - (14,765) 28 2,459 - 2,459
Loss for
the period - - - - (171) - (171) - (171)
Share based
payments - - 10 - - - 10 - 10
Balance at
30 June
2016 4,418 12,181 607 - (14,936) 28 2,298 - 2,298
------------- --------- --------- --------- -------- ---------- ------------- -------- ----------------- --------
Notes to the Interim Report
1 General information
Orogen Gold plc is a company incorporated and domiciled in
England and Wales. Details of the registered office, the officers
and advisers to the Company are presented on the Company
information page at the end of this report. The Company's offices
are in London and Dublin. The Company is quoted on the AIM market
of the London Stock Exchange (ticker: ORE.L). The company's
investment strategy is focused on mineral exploration in Europe and
Nevada, USA.
The Mutsk gold exploration project in Armenia is the Company's
main operational project and the Silverton project in Nevada, USA
was added to the exploration portfolio in April 2016.
2 Basis of preparation
The financial information for the six months ended 30 June 2016
and 30 June 2015 is unaudited.
The Interim Report has been prepared using the same accounting
policies as were applied in the Group's audited financial
statements to 31 December 2015, which were prepared in accordance
with International Financial Reporting Standards ("IFRS"). As is
permitted by the AIM rules the Directors have not adopted the
requirements of IAS34 "Interim Financial Reporting" in preparing
the financial statements. Accordingly, the financial statements are
not in full compliance with IFRS and have neither been audited nor
reviewed pursuant to guidance issued by the Auditing Practices
Board. The Directors consider that the financial information
presented in this Interim Report represents fairly the financial
position, operations and cash flows for the period, in conformity
with IFRS. The Interim Report for the six months ended 30 June 2016
was approved by the Directors on 27 September 2016.
The financial information presented for the period ended 31
December 2015 is an extraction from the Group's audited accounts on
which the auditors issued an unqualified report. The information
presented does not constitute full accounts for that period.
3 Loss per share
Basic loss per share is calculated by dividing the loss
attributable to equity shareholders by the weighted average number
of ordinary shares in issue during the period:
Unaudited Unaudited Audited
30 June 30 June 31 December
2016 2015 2015
GBP'000 GBP'000 GBP'000
-------------------------------------- ---------- ---------- -------------
Loss after tax attributable
to equity holders of the parent (171) (181) (677)
Weighted average number of
ordinary shares in issue (millions) 5,508 3,691 4,002
Basic and diluted loss per
share (pence) (0.003) (0.005) (0.02)
-------------------------------------- ---------- ---------- -------------
Basic and diluted earnings per share are the same, since where a
loss is incurred the effect of outstanding share options and
warrants is considered anti-dilutive and is ignored for the purpose
of the loss per share calculation. The share options outstanding as
at 30 June 2016 totalled 380,000,000 (30 June 2015: 225,000,000, 31
December 2015: 380,000,000) and are potentially dilutive.
4 Exploration and evaluation assets
Armenia Silverton Serbia Total
GBP'000 GBP'000 GBP'000 GBP'000
----------------------------- ---------- ------------ --------- --------
Cost
At 1 January 2015 1,311 - 5,520 6,831
Additions 90 - 25 115
----------------------------- ---------- ------------ --------- --------
At 30 June 2015 1,401 - 5,545 6,946
Impairment
At 1 January 2015 - - 5,020 5,020
Impairment charge - - - -
----------------------------- ---------- ------------ --------- --------
At 30 June 2015 - - 5,020 5,020
----------------------------- ---------- ------------ --------- --------
Carrying value 30 June 2015 1,401 - 525 1,926
----------------------------- ---------- ------------ --------- --------
Cost
At 1 July 2015 1,401 - 5,545 6,946
Additions 176 - 9 185
----------------------------- ---------- ------------ --------- --------
At 31 December 2015 1,577 - 5,554 7,131
----------------------------- ---------- ------------ --------- --------
Impairment
At 1 July 2015 - - 5,020 5,020
Impairment charge - - 534 534
----------------------------- ---------- ------------ --------- --------
At 31 December 2015 - - 5,554 5,554
----------------------------- ---------- ------------ --------- --------
Carrying value 31 December
2015 1,577 - - 1,577
----------------------------- ---------- ------------ --------- --------
Cost
At 1 January 2016 1,577 - 5,554 7,131
Additions 87 6 9 102
----------------------------- ---------- ------------ --------- --------
At 30 June 2016 1,664 6 5,563 7,233
----------------------------- ---------- ------------ --------- --------
Impairment
At 1 January 2016 - - 5,554 5,554
Impairment charge - - 9 9
----------------------------- ---------- ------------ --------- --------
At 30 June 2016 - - 5,563 5,563
----------------------------- ---------- ------------ --------- --------
Carrying value 30 June 2016 1,664 6 - 1,670
----------------------------- ---------- ------------ --------- --------
5 Cash and cash equivalents
Unaudited Unaudited Audited
30 June 30 June 31 December
2016 2015 2015
GBP'000 GBP'000 GBP'000
--------------------------- ---------- ---------- -------------
Cash at bank 652 851 921
--------------------------- ---------- ---------- -------------
Cash and cash equivalents 652 851 921
--------------------------- ---------- ---------- -------------
6 Share capital
Details of ordinary and deferred shares issued are in the table
below:
Deferred
Ordinary Shares Shares
(GBP0.0001) (GBP0.009)
------------- ------------------------ --------------------------- ---------------------
Issue Issue
Date Number Price Number Price
Details of shares GBP of shares GBP
------------- ------------------------ ---------------- --------- ------------ -------
At 1 Jan
2015 Opening Balance 3,560,432,183 429,643,035
------------- ------------------------ ---------------- --------- ------------ -------
27 Jan Mutsk continuation
2015 notice 110,886,804 0.000597
25 Mar Drill for equity
2015 agreement 36,350,350 0.002
Share placing
30 Oct - GBP450,000 (before
2015 costs) 1,800,000,000 0.00025
------------- ------------------------ ---------------- --------- ------------ -------
At 30
June 2016 Closing Balance 5,507,669,337 429,643,035
------------- ------------------------ ---------------- --------- ------------ -------
7 Subsequent events
On 26 July 2016, Orogen announced that it raised GBP350,000
before expenses through a share placing of 2,333,333,333 new
Ordinary Shares of 0.01p each in the capital of the Company with
investors at 0.015p per share. Following the completion of the
placing, the total issued ordinary share capital of the Company
comprised 7,841,002,670 shares.
On 31 August 2016, Orogen announced that it had completed
US$2.5m exploration expenditures on the Mutsk property and
exercised its option to acquire an 80% interest in Georaid CJSC,
the Armenian registered company that holds the exploration licence
covering the Mutsk property. The completion of the earn-in has been
acknowledged by Orogen's partners on the project and the process to
register the Company's interest has commenced.
8 Copy of the Interim Report
Copies of the Interim Report are available to download from the
Company's website at www.orogengold.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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