TIDMORP
RNS Number : 6390T
Origo Resource Partners Limited
10 June 2009
10 June 2009
Origo Resource Partners Limited
Preliminary results for the period ended 31 December 2008
Origo Resource Partners Limited ("ORP" or "the Fund") is pleased to announce its
preliminary results for the period ended 31 December 2008.
Financial highlights as at 31 December 2008
* Net assets of US$79.7 million
* Net assets per share of 164.03 cents
* Investments in six unlisted companies with a total value of US$58.9 million
* Cash and cash equivalents of US$20.8 million
Further information:
+---------------------------------------------------------+------------------------------------+
| Origo Resource Partners | |
| Chris Rynning | +86 1390 124 6417 |
| (chris@origoplc.com) | |
| | |
| Niklas Ponnert | +86 1351 106 1672 |
| (niklas@origoplc.com) | |
| | |
+---------------------------------------------------------+------------------------------------+
| Nominated Adviser: | +44 (0)20 7131 4000 |
| Smith & Williamson Corporate Finance Limited | |
| Azhic Basirov / Jo Royden-Turner | |
| | |
+---------------------------------------------------------+------------------------------------+
| Broker: | +44 (0)20 3100 2222 |
| Liberum Capital Limited | |
| Simon Atkinson | |
| | |
+---------------------------------------------------------+------------------------------------+
| Public Relations: | +44 (0)20 7321 0000 |
| Aura Financial | |
| Andy Mills / Nina Legge | |
| | |
+---------------------------------------------------------+------------------------------------+
Chairman's statement
I present the first annual results of Origo Resource Partners Limited (the
"Company") and its subsidiary (together the "Group") for the period ended 31
December 2008 against the background of the biggest global financial crisis for
seven decades and arguably in history.
While it is disappointing-but not surprising in light of the above- to record
that the Group made a loss of US$ 13.5 million (27.78 cents per Ordinary Share),
and that the price of the Company's Ordinary Shares fell by 66% since launch to
end the period at 34 pence, there are some grounds for optimism.
Firstly, a review by the Board and the Investment Consultant of the Group's
investments in six unlisted companies (as detailed in the Investment
Consultant's report) with a total cost of US$ 69.7 million concluded that the
fair value of these investments at year-end totalled US$ 58.9 million, with only
one being impaired by just over US$ 10.5 million and a second reduced by US$ 0.3
million due to changes in currency exchange rates.
Secondly, the Board has consciously chosen to preserve the Group's resources to
ensure that the Group can meet its working capital requirements for the
foreseeable future and be able to take advantage of further investment
opportunities without resorting to gearing in the current climate. However, with
the Ordinary Shares trading at a discount of approximately 70% to net asset
value at 31 December 2008, the Board has considered the possibility of share
buy-backs. It concluded that while this course of action might lead to a
narrowing of the discount in the short-term, it was more prudent to preserve
cash for the reasons stated above.
Given the on-going uncertainty facing global financial markets, your Board has
decided that focusing on the current investments is the best course of action in
the short-term, and continues, through the agency of the Investment Consultant,
to work closely with the management teams of the investee companies. Although it
is not possible to predict when global markets will begin a sustained recovery,
your Board believes that the Group is well-positioned to take advantage when
recovery begins and remains cautiously optimistic that the Group's investment
objectives will be met.
In conclusion, the reference to "seven decades" above is an unwelcome reminder
that I am now in my eighth decade and, after careful consideration, I have
decided not to offer myself for re-election as a director at the forthcoming
Annual General Meeting. Board continuity and experience is important and I am
pleased to report that the rest of the Board members are offering themselves for
re-election and that the Board has unanimously elected Charles Wilkinson as my
successor. I wish them all well and thank them for their much-appreciated
support and advice over the past eighteen months.
Nigel Taylor
9 June 2009
Investment Consultant's Report
It is our pleasure to deliver the Investment Consultant's Report for the period
ended 31 December 2008, comprising a review of the market environment, our
investment and divestment activities during the period, and our outlook for the
remainder of 2009.
Market Environment
During the last twelve months we have witnessed a global economic crisis led by
the implosion of the financial sector and followed by a general softening of the
world economy. Governments have intervened by recapitalizing financial
institutions, tightening up regulatory frameworks, and launching large stimulus
packages, the effects of which are yet to be felt in the real economy.
In the commodities sector, a steep drop in commodity prices has resulted in
widespread de-leveraging of balance sheets, a fall in mining indices on stock
exchanges across the world and a decline in M&A activity. Chinese companies,
however, have bucked this trend, with both State Owned Enterprises and smaller
private players emerging onto the international scene seeking acquisition
opportunities.
Like equity markets across the world, private equity investment activities in
China and India slowed during the second half of 2008. Private equity and
venture investment in China amounted to US$20.9 billion in 2008, marginally up
from US$20.3 billion in 2007. Conversely, private equity flows in India came in
at US$10.6 billion in 2008 compared to US$14.1 billion in 2007.
Investments
In 2008 the Group completed six investments with a total cost of US$69.7 million
in three different resource sub-sectors: metals & mining; renewables/clean-tech;
and agriculture.
+-----------------+----------------+-----------------------------+----------------+
| Time of | Investee | Business activities | Investment |
| original | company | | (US$ million) |
| investment | | | |
+-----------------+----------------+-----------------------------+----------------+
| January | RIBEC | Bio-fuels feedstock | 17.0 |
+-----------------+----------------+-----------------------------+----------------+
| January | IGH | Mining services | 10.0 |
+-----------------+----------------+-----------------------------+----------------+
| February | FIL | Iron ore acquisition | 17.0 |
| | | vehicle | |
+-----------------+----------------+-----------------------------+----------------+
| February | Staur Aqua | Desalination | 2.7 |
+-----------------+----------------+-----------------------------+----------------+
| July | Halosource | Water purification | 7.0 |
+-----------------+----------------+-----------------------------+----------------+
| September | PHI | Soft-commodities | 16.0 |
+-----------------+----------------+-----------------------------+----------------+
In January 2008, the Group completed its first investment in the mining and
energy sector in the form of a US$10 million commitment to Inveritas Global
Holdings ("IGH"), a safety, health, environment, risk and quality ("SHERQ")
certification and consultancy group, which provides certification and safety
consulting services to mining and energy companies. In February 2008, the Group
announced another investment in the mining sector in the form of a US$17 million
commitment to Fomento International Limited ("FIL"), a consolidation vehicle for
iron ore assets. Since the end of the period the Group invested a further US$3.5
million in IGH (which is now rebranded as IRCA), and has agreed a further US$2.5
million investment, to finance two acquisitions which we believe have the
potential to transform the IRCA business.
To date, the Group has completed three investments in the renewables/clean-tech
sector. In a series of transactions, the Group has committed a total of US$4
million to Staur Aqua A/S, the holding vehicle of Aqualyng Holdings A/S
("Aqualyng"), a supplier and operator of desalination plants. In July, the Group
invested US$7 million as part of a US$11.5 million fundraising of Halosource
Inc, a provider of low-cost water purification solutions addressing the vast
consumer markets of China and India. Finally, the Group has invested US$17
million in Roshini International Bio Energy Corporation ("RIBEC"), a
Hyderabad-based pioneer of Pongamia, a tree-borne, non-edible bio-fuel
feedstock.
In September the scope of the investment portfolio was extended to include the
agriculture/soft-commodity sector, through an investment of US$16 million in
Primary Holdings International Trust ("PHI"), an Australian agribusiness. PHI's
strategy is to acquire farm-land properties in Australia, targeting exports to
the emerging economies of Asia.
The carrying values of the Group's investments have been carefully reviewed in
light of the worldwide deflation of asset values across a broad spectrum of
asset classes. Given prevailing market conditions, we are pleased to report that
the value of the Group's portfolio has largely been maintained. This has been
achieved through careful deal structuring including the use of preferential
stock and instruments which has protected the value of the Group's investments.
The notable exception is the investment in RIBEC, which has been written down
substantially due to delays in procuring adequate expansion funding and
declining ratings of comparable assets.
Divestments
The Group did not complete any divestments during the course of the period.
However, in February 2009 the Group sold back its stake in FIL to that company,
for a total cash consideration of US$17 million, the same amount invested by the
Group early in 2008.
+---------------+----------+---------------+---------------+---------------------------+
| Date of | Company | Cost of | Proceeds (US$ | Gain/Loss (US$ million) |
| Divestment | | Investment | million) | |
| | | (US$ million) | | |
+---------------+----------+---------------+---------------+---------------------------+
| 3 February | FIL | 17.0 | 17.0 | - |
| 2009 | | | | |
+---------------+----------+---------------+---------------+---------------------------+
Given the condition of commodity markets, in particular the decline in the price
of iron ore and the value of mining stocks, we believe the divestment of the FIL
stake was a favourable outcome for the Group.
In May 2009, the Group announced the merger of PHI and R.M.Williams Agricultural
Holdings Pty Ltd ("RMWAH"), a new venture formed by R.M.Williams Pty Ltd.
("RMW"), the well known Australian footwear, apparel and accessories company.
Following the merger, the Group's holding in PHI, which was equivalent to 39
percent of PHI's issued share capital, was exchanged for shares in RMWAH
equivalent to around 31 percent of the voting rights in RMWAH. In addition, the
Group was granted warrants to purchase RMWAH ordinary shares equivalent to a
further 16 percent of RMWAH's issued share capital. We believe that the
partnership with R.M.Williams has been concluded on terms beneficial to the
Group's shareholders and will create a stronger entity, with deeper strategic
and financial resources at its disposal.
Outlook
While a marked recovery is unlikely in the second half of the year, we believe
the global economy will stabilize in the second half of 2009 and growth, led by
China and India, will resume in 2010.
Unprecedented amounts of government spending together with the accumulation of
debt are likely to increase the pressure on currency values, particularly the US
dollar, resulting in support for commodity prices. Meanwhile, monetary stimulus
packages designed to 'reflate' the economy are expected to boost demand for
cyclical commodities, such as industrial metals and energy. In addition, low
interest rates reduce the opportunity cost of holding all commodities, thus
providing another welcome push to depressed commodity markets.
The current global economic situation presents the Group with both challenges
and opportunities. The short-term macro-economic outlook, combined with
generally low valuations in the natural resources sector, presents the Group
with unprecedented investment opportunities. However, access to equity and debt
finance is expected to remain challenging for the foreseeable future. The low
levels of gearing applied across the Group's investments have shielded the
portfolio from the immediate effects of the credit crunch, however, several
portfolio companies will need to raise further capital in order to achieve their
growth objectives.
Our priorities for the remainder of the year remain to ensure that our portfolio
companies are properly funded, and to take advantage of investment opportunities
as they arise.
C Rynning
N Ponnert
Origo Advisors Limited
9 June 2009
+---------------+-------------+------------------+------------+-----------+-----------+----------+
| Portfolio | Industry | Segment | Date |Ownership | Capital | Fair |
| Holding | Sector | | of | | Invested | Value |
| | | | Initial | | US$ | US$ |
| | | |Investment | | million | million |
+---------------+-------------+------------------+------------+-----------+-----------+----------+
| Roshini | Alternative | Bio-fuels | Jan-08 | 19.9% | 17.0 | 6.5 |
| International | Energy | feed-stock | | | | |
| Bio Energy | | | | | | |
| Corporation | | | | | | |
+---------------+-------------+------------------+------------+-----------+-----------+----------+
| Inveritas | Metals | Mining | Jan-08 | 37.8% | 10.0 | 10.0 |
| Global | & | services | | | | |
| Holdings | Mining | | | | | |
| Limited | | | | | | |
+---------------+-------------+------------------+------------+-----------+-----------+----------+
| Fomento | Metals | Iron | Feb-08 | 5.1% | 17.0 | 17.0 |
| International | & | ore | | | | |
| Limited | Mining | | | | | |
+---------------+-------------+------------------+------------+-----------+-----------+----------+
| Staur | Clean | Water | Feb-08 | 9.2% | 2.7 | 2.4 |
| Aqua AS | Tech | desalination | | | | |
+---------------+-------------+------------------+------------+-----------+-----------+----------+
| Halosource, | Clean | Water | Jul-08 | 11.1% | 7.0 | 7.0 |
| Inc. | Tech | purification | | | | |
+---------------+-------------+------------------+------------+-----------+-----------+----------+
| Primary | Agriculture | Soft-commodities | Sept-08 | 39.0% | 16.0 | 16.0 |
| Holdings | | | | | | |
| International | | | | | | |
| Trust | | | | | | |
+---------------+-------------+------------------+------------+-----------+-----------+----------+
| | | | | | -------- |-------- |
+---------------+-------------+------------------+------------+-----------+-----------+----------+
| Total at 31 December 2008 | 69.7 | 58.9 |
+-------------------------------------------------------------------------+-----------+----------+
| | | | | |--------- |-------- |
+---------------+-------------+------------------+------------+-----------+-----------+----------+
+-----------+--------+--------------+----------+--------+
| Investments made after 31 December 2008 |
+-------------------------------------------------------+
| Staur | Clean | Water | 0.8 | |
| Aqua AS | Tech | desalination | | |
+-----------+--------+--------------+----------+--------+
| Inveritas | Metals | Mining | 6.0 | |
| Global | & | services | | |
| Holdings | Mining | | | |
| Limited | | | | |
+-----------+--------+--------------+----------+--------+
| | | |-------- | |
+-----------+--------+--------------+----------+--------+
| | | | 76.5 | |
+-----------+--------+--------------+----------+--------+
+---------------+--------+--------+----------+--------+
| Divestments made after 31 December 2008 |
+-----------------------------------------------------+
| Fomento | Metals | Iron | (17.0) | |
| International | & | ore | | |
| Limited | Mining | | | |
+---------------+--------+--------+----------+--------+
| | | |-------- | |
+---------------+--------+--------+----------+--------+
+--------+--------+--------+----------+--------+
| Total at the date of | 59.5 | |
| this report | | |
+--------------------------+----------+--------+
| | | |-------- | |
+--------+--------+--------+----------+--------+
| |
+----------------------------------------------+
| Details of the above investments are |
| available from |
| www.origoresourcepartners.com. |
+--------+--------+--------+----------+--------+
+-----------------------------+-------------------------------------------------------------+
| Roshini International Bio Energy Corporation ("RIBEC") |
+-------------------------------------------------------------------------------------------+
| | |
+-----------------------------+-------------------------------------------------------------+
| Market | India |
+-----------------------------+-------------------------------------------------------------+
| Industry sector | Alternative Energy |
+-----------------------------+-------------------------------------------------------------+
| Segment | Bio-fuels feedstock |
+-----------------------------+-------------------------------------------------------------+
| Date of Investment | January 2008 |
+-----------------------------+-------------------------------------------------------------+
| Cost of Investment (US$) | 17 million |
+-----------------------------+-------------------------------------------------------------+
| Instrument | Equity |
+-----------------------------+-------------------------------------------------------------+
| Equity interest | 19.9% |
+-----------------------------+-------------------------------------------------------------+
| Fair Value (US$) | 6.5 million |
+-----------------------------+-------------------------------------------------------------+
| % of net assets | 8.2% |
+-----------------------------+-------------------------------------------------------------+
| Basis of valuation | Price of last investment (less impairment) |
+-----------------------------+-------------------------------------------------------------+
| Business Description | RIBEC is a bio-energy company headquartered in Hyderabad, |
| | India. RIBEC manages a substantial plantation of Pongamia - |
| | a non-edible, tree-borne bio-fuel feedstock. |
+-----------------------------+-------------------------------------------------------------+
+--------------------------+----------------------------------------------------------------+
| Inveritas Global Holdings Limited ("IGH") |
+-------------------------------------------------------------------------------------------+
| | |
+--------------------------+----------------------------------------------------------------+
| Markets | China/India/Africa |
+--------------------------+----------------------------------------------------------------+
| Industry Sector | Metals and Mining |
+--------------------------+----------------------------------------------------------------+
| Segment | Mining services |
+--------------------------+----------------------------------------------------------------+
| Date of Investment | January 2008 |
+--------------------------+----------------------------------------------------------------+
| Cost of Investment (US$) | 10 million |
+--------------------------+----------------------------------------------------------------+
| Instrument | Equity/ Convertible debt |
+--------------------------+----------------------------------------------------------------+
| Equity interest | 37.8% |
+--------------------------+----------------------------------------------------------------+
| Fair Value (US$) | 10 million |
+--------------------------+----------------------------------------------------------------+
| % of net assets | 12.5% |
+--------------------------+----------------------------------------------------------------+
| Basis of valuation | Price of last investment |
+--------------------------+----------------------------------------------------------------+
| Business Description | IGH, and its associated companies, provides safety, health, |
| | environment, risk and quality ("SHERQ") products and services |
| | focused particularly on the mining and energy sectors. |
| | As discussed in the Investment Consultant's Report IGH changed |
| | its name post period end to IRCA Holdings Limited. |
+--------------------------+----------------------------------------------------------------+
+--------------------------+----------------------------------------------------------------+
| Fomento International Limited ("FIL") |
+-------------------------------------------------------------------------------------------+
| | |
+--------------------------+----------------------------------------------------------------+
| Market | India |
+--------------------------+----------------------------------------------------------------+
| Industry sector | Metals and Mining |
+--------------------------+----------------------------------------------------------------+
| Segment | Iron ore |
+--------------------------+----------------------------------------------------------------+
| Date of Investment | February 2008 |
+--------------------------+----------------------------------------------------------------+
| Cost of Investment (US$) | 17 million |
+--------------------------+----------------------------------------------------------------+
| Instrument | Equity |
+--------------------------+----------------------------------------------------------------+
| Equity interest | 5.1% |
+--------------------------+----------------------------------------------------------------+
| Fair Value (US$) | 17 million |
+--------------------------+----------------------------------------------------------------+
| % of net assets | 21.3% |
+--------------------------+----------------------------------------------------------------+
| Basis of valuation | Price of last investment |
+--------------------------+----------------------------------------------------------------+
| Business Description | FIL is a vehicle jointly held with the promoters of Fomento |
| | Group, one of India's largest privately held vertically |
| | integrated mining, beneficiation and logistics operations. |
+--------------------------+----------------------------------------------------------------+
+--------------------------+----------------------------------------------------------------+
| Staur Aqua AS ("Staur") |
+-------------------------------------------------------------------------------------------+
| | |
+--------------------------+----------------------------------------------------------------+
| Markets | China/Europe/Africa |
+--------------------------+----------------------------------------------------------------+
| Industry sector | Clean Tech |
+--------------------------+----------------------------------------------------------------+
| Segment | Water desalination |
+--------------------------+----------------------------------------------------------------+
| Date of Investment | February 2008 |
+--------------------------+----------------------------------------------------------------+
| Cost of Investment (US$) | 2.7 million |
+--------------------------+----------------------------------------------------------------+
| Instrument | Equity/ Debt |
+--------------------------+----------------------------------------------------------------+
| Equity interest | 9.2% |
+--------------------------+----------------------------------------------------------------+
| Fair Value (US$) | 2.4 million |
+--------------------------+----------------------------------------------------------------+
| % of net assets | 3.0% |
+--------------------------+----------------------------------------------------------------+
| Basis of valuation | Price of last investment |
+--------------------------+----------------------------------------------------------------+
| Business Description | Staur, together with its associated companies, is an |
| | international provider and operator of desalination plants, |
| | with an eight year history of delivering turn-key desalination |
| | solutions based on its patented energy recovery system. |
+--------------------------+----------------------------------------------------------------+
+--------------------------+----------------------------------------------------------------+
| Halosource, Inc. ("Halosource") |
+-------------------------------------------------------------------------------------------+
| | |
+--------------------------+----------------------------------------------------------------+
| Markets | US/China/India |
+--------------------------+----------------------------------------------------------------+
| Industry sector | Clean Tech |
+--------------------------+----------------------------------------------------------------+
| Segment | Water purification |
+--------------------------+----------------------------------------------------------------+
| Date of Investment | July 2008 |
+--------------------------+----------------------------------------------------------------+
| Cost of Investment (US$) | 7 million |
+--------------------------+----------------------------------------------------------------+
| Instrument | Preferred Equity and Warrants |
+--------------------------+----------------------------------------------------------------+
| Equity interest | 11.1% |
+--------------------------+----------------------------------------------------------------+
| Fair Value (US$) | 7 million |
+--------------------------+----------------------------------------------------------------+
| % of net assets | 8.8% |
+--------------------------+----------------------------------------------------------------+
| Basis of valuation | Price of last investment |
+--------------------------+----------------------------------------------------------------+
| Business Description | Halosource is a clean technology group focused on water and |
| | anti-microbial fabric treatment. Halosource's flagship |
| | product, HaloPure , offers a solution to simple, safe and |
| | complete purification of drinking water in point-of-use |
| | systems, targeted at the mass consumer markets of China and |
| | India. |
+--------------------------+----------------------------------------------------------------+
+--------------------------+------------------------------------------------------------+
| Primary Holdings International Trust ("PHI") |
+---------------------------------------------------------------------------------------+
| | |
+--------------------------+------------------------------------------------------------+
| Market | Australia |
+--------------------------+------------------------------------------------------------+
| Industry sector | Agriculture |
+--------------------------+------------------------------------------------------------+
| Segment | Soft-commodities |
+--------------------------+------------------------------------------------------------+
| Date of Investment | September 2008 |
+--------------------------+------------------------------------------------------------+
| Cost of Investment (US$) | 16 million |
+--------------------------+------------------------------------------------------------+
| Instrument | Preferred Equity and Warrants |
+--------------------------+------------------------------------------------------------+
| Equity interest | 39.0% |
+--------------------------+------------------------------------------------------------+
| Fair Value (US$) | 16 million |
+--------------------------+------------------------------------------------------------+
| % of net assets | 20.1% |
+--------------------------+------------------------------------------------------------+
| Basis of valuation | Price of last investment |
+--------------------------+------------------------------------------------------------+
| Business Description | PHI is a vehicle established to acquire prime, |
| | under-utilised Australian farmland and develop a |
| | diversified, integrated group of properties capable of |
| | supplying a full range of premium soft commodities for |
| | export to Asia. |
| | As discussed in the Investment Consultant's Report PHI |
| | merged with R.M. Williams Agricultural Holdings Pty |
| | Limited in May 2009. |
+--------------------------+------------------------------------------------------------+
Consolidated Income Statement
for the period from inception (26 November 2007) to 31 December 2008
+-----------------------------------------------------+------+-------------------+
| |Note | 26 November 2007 |
| | | to 31 December |
| | | 2008 |
+-----------------------------------------------------+------+-------------------+
| | | US$'000 |
+-----------------------------------------------------+------+-------------------+
| Investment gains and losses | | |
+-----------------------------------------------------+------+-------------------+
| Unrealised loss on investments at fair value | 6 | (10,808) |
| through profit or loss | | |
+-----------------------------------------------------+------+-------------------+
| | | ------------ |
+-----------------------------------------------------+------+-------------------+
| Income | | |
+-----------------------------------------------------+------+-------------------+
| Investment income | | 169 |
+-----------------------------------------------------+------+-------------------+
| Bank interest | | 1,245 |
+-----------------------------------------------------+------+-------------------+
| Other income | | 19 |
+-----------------------------------------------------+------+-------------------+
| | | ------------ |
+-----------------------------------------------------+------+-------------------+
| Total income | | 1,433 |
+-----------------------------------------------------+------+-------------------+
| | | ------------ |
+-----------------------------------------------------+------+-------------------+
| Expenses | | |
+-----------------------------------------------------+------+-------------------+
| Management fee | 3 | (1,896) |
+-----------------------------------------------------+------+-------------------+
| Administration fees | 3 | (236) |
+-----------------------------------------------------+------+-------------------+
| Investment research costs | | (195) |
+-----------------------------------------------------+------+-------------------+
| Other expenses | 4 | (615) |
+-----------------------------------------------------+------+-------------------+
| | | ------------ |
+-----------------------------------------------------+------+-------------------+
| Total expenses | | (2,942) |
+-----------------------------------------------------+------+-------------------+
| | | ------------ |
+-----------------------------------------------------+------+-------------------+
| Foreign exchange gains and losses | | (1,185) |
+-----------------------------------------------------+------+-------------------+
| | | |
+-----------------------------------------------------+------+-------------------+
| | | ------------ |
+-----------------------------------------------------+------+-------------------+
| Loss for the period | | (13,502) |
+-----------------------------------------------------+------+-------------------+
| | | ------------ |
+-----------------------------------------------------+------+-------------------+
| | | |
+-----------------------------------------------------+------+-------------------+
| Loss per Ordinary Share - basic and fully diluted | 5 | (27.78) cents |
+-----------------------------------------------------+------+-------------------+
Consolidated Statement of Changes in Equity
for the period from inception (26 November 2007) to 31 December 2008
+----------------------------+------+------------+------------+---------------+-------------+------------+
| |Note | Share | Share | Distributable | Foreign | Total |
| | | capital | premium | reserves | currency | |
| | | | | | translation | |
| | | | | | reserve | |
+----------------------------+------+------------+------------+---------------+-------------+------------+
| | | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 |
+----------------------------+------+------------+------------+---------------+-------------+------------+
| Gross proceeds of placing | | - | 98,041 | - | - | 98,041 |
+----------------------------+------+------------+------------+---------------+-------------+------------+
| Issue costs | | - | (4,837) | - | - | (4,837) |
+----------------------------+------+------------+------------+---------------+-------------+------------+
| Cancellation of share | 8 | - | (93,204) | 93,204 | - | - |
| premium | | | | | | |
+----------------------------+------+------------+------------+---------------+-------------+------------+
| Loss for the period | | - | - | (13,502) | - | (13,502) |
+----------------------------+------+------------+------------+---------------+-------------+------------+
| Foreign currency on | | - | - | - | 15 | 15 |
| translation | | | | | | |
+----------------------------+------+------------+------------+---------------+-------------+------------+
| | | ---------- | ---------- | ---------- | ---------- | ---------- |
+----------------------------+------+------------+------------+---------------+-------------+------------+
| Balance at 31 December | | - | - | 79,702 | 15 | 79,717 |
| 2008 | | | | | | |
+----------------------------+------+------------+------------+---------------+-------------+------------+
| | | ---------- | ---------- | ---------- | ---------- | ---------- |
+----------------------------+------+------------+------------+---------------+-------------+------------+
Consolidated Balance Sheet
as at 31 December 2008
+-------------------------------------------------------------+------+---------------+
| |Note | 31 December |
| | | 2008 |
+-------------------------------------------------------------+------+---------------+
| | | US$'000 |
+-------------------------------------------------------------+------+---------------+
| Non-current assets | | |
+-------------------------------------------------------------+------+---------------+
| Investments at fair value through profit or loss | 6 | 58,902 |
+-------------------------------------------------------------+------+---------------+
| | | ---------- |
+-------------------------------------------------------------+------+---------------+
| Current assets | | |
+-------------------------------------------------------------+------+---------------+
| Receivables and prepayments | | 261 |
+-------------------------------------------------------------+------+---------------+
| Cash and cash equivalents | | 20,755 |
+-------------------------------------------------------------+------+---------------+
| | | ---------- |
+-------------------------------------------------------------+------+---------------+
| | | 21,016 |
+-------------------------------------------------------------+------+---------------+
| | | ---------- |
+-------------------------------------------------------------+------+---------------+
| Total assets | | 79,918 |
+-------------------------------------------------------------+------+---------------+
| | | ---------- |
+-------------------------------------------------------------+------+---------------+
| Current liabilities | | |
+-------------------------------------------------------------+------+---------------+
| Payables and accruals | | 201 |
+-------------------------------------------------------------+------+---------------+
| | | ---------- |
+-------------------------------------------------------------+------+---------------+
| Total liabilities | | 201 |
+-------------------------------------------------------------+------+---------------+
| | | ---------- |
+-------------------------------------------------------------+------+---------------+
| Net assets | | 79,717 |
+-------------------------------------------------------------+------+---------------+
| | | ---------- |
+-------------------------------------------------------------+------+---------------+
| Capital and reserves attributable to equity holders of the | | |
| Company | | |
+-------------------------------------------------------------+------+---------------+
| Called-up share capital | 8 | - |
+-------------------------------------------------------------+------+---------------+
| Share premium | 8 | - |
+-------------------------------------------------------------+------+---------------+
| Distributable reserves | | 79,702 |
+-------------------------------------------------------------+------+---------------+
| Foreign currency translation reserve | | 15 |
+-------------------------------------------------------------+------+---------------+
| | | ---------- |
+-------------------------------------------------------------+------+---------------+
| Total equity shareholders' funds | | 79,717 |
+-------------------------------------------------------------+------+---------------+
| | | ---------- |
+-------------------------------------------------------------+------+---------------+
| | | |
+-------------------------------------------------------------+------+---------------+
| Net Asset Value per Ordinary Share - basic and fully | 10 | 164.03 cents |
| diluted | | |
+-------------------------------------------------------------+------+---------------+
Consolidated Statement of Cash Flows
for the period from inception (26 November 2007) to 31 December 2008
+--------------------------------------------------+------+-----------------+
| | | 26 November |
| | | 2007 to 31 |
| | | December 2008 |
+--------------------------------------------------+------+-----------------+
| | | US$'000 |
+--------------------------------------------------+------+-----------------+
| Operating activities | | |
+--------------------------------------------------+------+-----------------+
| Investment interest purchased | | (39) |
+--------------------------------------------------+------+-----------------+
| Bank interest received | | 1,232 |
+--------------------------------------------------+------+-----------------+
| Other income received | | 19 |
+--------------------------------------------------+------+-----------------+
| Management fees paid | | (1,901) |
+--------------------------------------------------+------+-----------------+
| Administration fees paid | | (190) |
+--------------------------------------------------+------+-----------------+
| Investment research costs | | (144) |
+--------------------------------------------------+------+-----------------+
| Other expenses | | (546) |
+--------------------------------------------------+------+-----------------+
| | | ---------- |
+--------------------------------------------------+------+-----------------+
| Net cash outflow from operating activities | | (1,569) |
+--------------------------------------------------+------+-----------------+
| | | |
+--------------------------------------------------+------+-----------------+
| Investing activities | | |
+--------------------------------------------------+------+-----------------+
| Purchase of investments at fair value through | | (69,710) |
| profit or loss | | |
+--------------------------------------------------+------+-----------------+
| | | ---------- |
+--------------------------------------------------+------+-----------------+
| Net cash outflow from investing activities | | (69,710) |
+--------------------------------------------------+------+-----------------+
| | | ---------- |
+--------------------------------------------------+------+-----------------+
| Financing activities | | |
+--------------------------------------------------+------+-----------------+
| Proceeds from issue of Ordinary Shares and | | 98,041 |
| Warrants | | |
+--------------------------------------------------+------+-----------------+
| Issue costs | | (4,837) |
+--------------------------------------------------+------+-----------------+
| | | ---------- |
+--------------------------------------------------+------+-----------------+
| Net cash inflow from financing activities | | 93,204 |
+--------------------------------------------------+------+-----------------+
| | | ---------- |
+--------------------------------------------------+------+-----------------+
| Net foreign exchange loss | | (1,170) |
+--------------------------------------------------+------+-----------------+
| | | ---------- |
+--------------------------------------------------+------+-----------------+
| Increase in cash and cash equivalents | | 20,755 |
+--------------------------------------------------+------+-----------------+
| | | ---------- |
+--------------------------------------------------+------+-----------------+
| Cash and cash equivalents at beginning of period | | - |
+--------------------------------------------------+------+-----------------+
| Increase in cash and cash equivalents | | 20,755 |
+--------------------------------------------------+------+-----------------+
| | | ---------- |
+--------------------------------------------------+------+-----------------+
| Cash and cash equivalents at end of period | | 20,755 |
+--------------------------------------------------+------+-----------------+
| | | ---------- |
+--------------------------------------------------+------+-----------------+
Notes for the period from inception (26 November 2007) to 31 December 2008
1. General Information
The Company was incorporated on 26 November 2007 as a closed-ended investment
company registered under the provisions of The Companies (Guernsey) Law 2008, as
amended. On 14 December 2007 the Group raised gross proceeds of US$98.0 million
(GBP48.6 million) through the issue of 48.6 million Ordinary Shares at 100p each
and 9.72 million Warrants (on the basis of one Warrant for every five Ordinary
Shares subscribed), with the Ordinary Shares being admitted to trading on AIM, a
market operated by the London Stock Exchange, and listing on The Channel Islands
Stock Exchange.
Following recent changes to the Guernsey regulatory fund regime, the Company has
elected to be an "authorised" closed-ended investment scheme under the
Protection of Investors (Bailiwick of Guernsey) Law, 1987, as amended. This has
no impact on the operation of the Company.
It is the aim of the Company to provide Shareholders with capital appreciation
primarily from investments in equity and equity-linked instruments in private,
unlisted companies whose primary business is related to the natural resource
sectors of China and India.
2. Significant accounting policies
The siginficant accounting policies adopted in the preparation of the financial
information set out in this announcement are set out in the full financial
statements for the year ended 31 December 2008.
New standards and interpretations not applied
The IASB and IFRIC have issued the following standards and interpretations with
an effective date after the date of the financial statements:
+-----------+------------------------------------------------------+--------------------+
| International Accounting Standards/International Financial | Effective date |
| Reporting Standards (IAS/IFRS) | |
+------------------------------------------------------------------+--------------------+
| IAS 1 | Presentation of Financial Statements (revised 2007, | 1 January 2009 and |
| | 2008 and April 2009) | 1 January 2010 |
+-----------+------------------------------------------------------+--------------------+
| IAS 7 | Statement of Cash Flows (revised April 2009) | 1 January 2010 |
+-----------+------------------------------------------------------+--------------------+
| IAS 16 | Property, Plant and Equipment (revised May 2008) | 1 January 2009 |
+-----------+------------------------------------------------------+--------------------+
| IAS 17 | Leases (revised April 2009) | 1 January 2010 |
+-----------+------------------------------------------------------+--------------------+
| IAS 19 | Employee Benefits (revised May 2008) | 1 January 2009 |
+-----------+------------------------------------------------------+--------------------+
| IAS 20 | Government Grants and Disclosures of Government | 1 January 2009 |
| | Assistance (revised May 2008) | |
+-----------+------------------------------------------------------+--------------------+
| IAS 23 | Borrowing Costs (revised 2007 and May 2008) | 1 January 2009 |
+-----------+------------------------------------------------------+--------------------+
| IAS 27 | Consolidated and Separate Financial Statements | 1 January 2009 and |
| | (revised 2008) | 1 July 2009 |
+-----------+------------------------------------------------------+--------------------+
| IAS 28 | Investments in Associates (revised 2008) | 1 January 2009 and |
| | | 1 July 2009 |
+-----------+------------------------------------------------------+--------------------+
| IAS 29 | Financial Reporting in Hyperinflationary Economies | 1 January 2009 |
| | (revised May 2008) | |
+-----------+------------------------------------------------------+--------------------+
| IAS 31 | Interests in Joint Ventures (revised 2008) | 1 January 2009 and |
| | | 1 July 2009 |
+-----------+------------------------------------------------------+--------------------+
| IAS 32 | Financial Instruments: Presentation (revised 2008) | 1 January 2009 |
+-----------+------------------------------------------------------+--------------------+
| IAS 36 | Impairment of Assets (revised May 2008 and April | 1 January 2009 and |
| | 2009) | 1 January 2010 |
+-----------+------------------------------------------------------+--------------------+
| IAS 38 | Intangible Assets (revised May 2008 and April 2009) | 1 January 2009 and |
| | | 1 July 2009 |
+-----------+------------------------------------------------------+--------------------+
| IAS 39 | Financial Instruments: Recognition and Measurement | 1 January 2009, |
| | (revised 2008, March 2009 and April 2009) | 30 June 2009, |
| | | 1 July 2009 and |
| | | 1 January 2010 |
+-----------+------------------------------------------------------+--------------------+
| IAS 40 | Investment Property (revised May 2008) | 1 January 2009 |
+-----------+------------------------------------------------------+--------------------+
| IAS 41 | Agriculture (revised May 2008) | 1 January 2009 |
+-----------+------------------------------------------------------+--------------------+
| IFRS 1 | First time Adoption of International Financial | 1 January 2009 |
| | Reporting Standards (revised May 2008) | |
+-----------+------------------------------------------------------+--------------------+
| IFRS 2 | Share-based Payment (revised 2008 and April 2009) | 1 January 2009 and |
| | | 1 July 2009 |
+-----------+------------------------------------------------------+--------------------+
| IFRS 3 | Business Combinations (revised 2008) | 1 July 2009 |
+-----------+------------------------------------------------------+--------------------+
| IFRS 5 | Non current Assets Held for Sale and Discontinued | 1 July 2009 and |
| | Operations (revised May 2008 and April 2009) | 1 January 2010 |
+-----------+------------------------------------------------------+--------------------+
| IFRS 7 | Financial Instruments: Disclosures (revised March | 1 January 2009 |
| | 2009) | |
+-----------+------------------------------------------------------+--------------------+
| IFRS 8 | Operating Segments (original issuance and revised | 1 January 2009 and |
| | April 2009) | 1 January 2010 |
+-----------+------------------------------------------------------+--------------------+
| |
+---------------------------------------------------------------------------------------+
| International Financial Interpretations Committee (IFRIC) |
+---------------------------------------------------------------------------------------+
| IFRIC 12 | Service Concession Arrangements | 1 January 2008 |
+-----------+------------------------------------------------------+--------------------+
| IFRIC 13 | Customer Loyalty Programmes | 1 July 2008 |
+-----------+------------------------------------------------------+--------------------+
| IFRIC 14 | IAS 19 - The Limit on a Defined Benefit Asset, | 1 January 2008 |
| | Minimum Funding Requirements and their Interaction | |
+-----------+------------------------------------------------------+--------------------+
| IFRIC 15 | Agreements for the Construction of Real Estate | 1 January 2009 |
+-----------+------------------------------------------------------+--------------------+
| IFRIC 16 | Hedges of a Net Investment in a Foreign Operation | 1 October 2008 |
+-----------+------------------------------------------------------+--------------------+
| IFRIC 17 | Distributions of Non-cash Assets to Owners | 1 July 2009 |
+-----------+------------------------------------------------------+--------------------+
| IFRIC 18 | Transfers of Assets from Customers | 1 July 2009 |
+-----------+------------------------------------------------------+--------------------+
The Directors have chosen not to early adopt the above standards and
interpretations as it is anticipated that these will not have any impact on the
financial position or the financial performance of the Group.
Upon adoption of the revised IFRS 7: Financial Instruments: Disclosures, on 1
January 2009, the Group will have to assess and provide enhanced disclosures
about the fair value of financial instruments and liquidity risk, including
establishing a three level hierarchy for making fair value measurements. The
Directors do not believe this revised standard will have a material effect on
the financial statements in the year of adoption.
Upon adoption of IFRS 8: Operating Segments, on 1 January 2009, the Group will
have to disclose additional information about its Operating segments, including
how the Group identifies its operating segments, and the type of products and
services from which each operating segment derives its revenue. There will be no
effect on reported income or net assets.
3. Management and Administration Fees
During the financial period Origo Advisors Limited (the "Investment Consultant")
acted as Investment Consultant to the Group. The Investment Consultant
sub-delegated certain duties to Origo Sino-India Plc (the "Sub-Consultant"),
under the terms of the Sub-Consultancy Agreement.
Investment Consultant Advisory fee
In consideration for the services rendered by the Investment Consultant the
Company pays the Investment Consultant a fee of 2.0% per annum of the Company's
net asset value ("NAV"), payable quarterly in advance.
Performance fee
The Investment Consultant is entitled to a performance fee in certain
circumstances. This fee is payable by reference to the increase in "Adjusted NAV
per Ordinary Share" (being the NAV at a particular time calculated on a basis
that does not recognise any liability of the Company to the Investment
Consultant in respect of any performance fee that is, or may become, payable in
respect of that performance period divided by the number of Ordinary Shares in
issue at that time) over the course of a performance period. The first
performance period began on admission of the Company to trading on AIM and
listing on The Channel Islands Stock Exchange ("Admission") and ended 31
December 2008. Each subsequent performance period is a period of one financial
year.
The Investment Consultant is entitled to a performance fee in respect of a
performance period only if the Adjusted NAV per Ordinary Share at the end of the
relevant performance period exceeds an amount equal to the placing price on
Admission (the "Placing Price") increased at a rate of 8.0% per annum on a
compounding basis up to the end of the relevant performance period (the
"performance hurdle"). If the performance hurdle is met and the high watermark
(see below) exceeded, the performance fee will be an amount equal to 20.0% of
the excess of the Adjusted NAV per Ordinary Share over the higher of the
performance hurdle and the high watermark multiplied by the time weighted
average of the total number of Ordinary Shares in issue, in each case since the
end of the last performance period in respect of which a performance fee was
last earned (or since Admission, if no performance fee has yet been earned)
together with an amount equal to the VAT thereon, if applicable. In addition,
the Investment Consultant is entitled to an additional performance fee in
respect of a performance period if the Adjusted NAV per Ordinary Share at the
end of the relevant performance period exceeds an amount equal to the Placing
Price increased at a rate of 25.0% per annum on a compounding basis up to the
end of the relevant performance period (the "additional performance hurdle") and
the high watermark. If this additional performance hurdle is met, the additional
performance fee earned will be an amount equal to 10.0% of the excess of the
Adjusted NAV per Ordinary Share over the higher of the additional performance
hurdle and the high watermark multiplied by the time weighted average of the
total number of Ordinary Shares in issue, in each case since the end of the last
performance period in respect of which a performance fee was last earned (or
since Admission if no performance fee has yet been earned) together with an
amount equal to the VAT thereon, if applicable.
No performance fee shall be payable unless the "high watermark" has been
exceeded. The high watermark will be exceeded if the Adjusted NAV per Ordinary
Share at the end of the relevant performance period is higher than the highest
previously recorded Adjusted NAV per Ordinary Share at the end of the last
performance period in relation to which a performance fee was last earned (or if
no performance fee has been earned since Admission, is higher than the Placing
Price). The performance fee referred to above shall accrue but shall only be
paid by the Company to the extent that, and only when, the Company has realised
profits on any of its investments.
For the period ended 31 December 2008, no performance fees were paid, or were
payable.
Introductory fees
It is expected that the Group may from time to time pay introductory fees to
intermediaries who introduce investment opportunities resulting in investments
by the Group. It is expected that such fees, which typically equate to 1.0% to
5.0% of the value of the investment, may be paid by the Group. Under the terms
of the Investment Support Agreement and the Sub-Consultancy Agreement, the
Investment Consultant and Sub-Consultant, respectively, shall disclose to the
Group, prior to the Board considering a transaction proposal put forward for
approval by the Executive Directors, full details of any profit, commission or
other payments received or to be received by the Investment Consultant or
Sub-Consultant, or any of their subsidiaries or associated companies (or their
respective directors, officers or employees) in relation to any investments or
potential investments for the Group. The Investment Consultant and
Sub-Consultant have undertaken that neither it nor any of its subsidiaries or
associated companies (nor any director, officer or employee of them) nor either
of the Executive Directors of the Company shall receive any introductory fee (or
similar fee).
Administration fee
The Administrator, Elysium Fund Management Limited, has been appointed to
provide administration and secretarial services to the Company. For these
services the Administrator receives an initial annual fee of 0.1% per annum
(subject to a minimum of GBP125,000, such minimum to be subject to an annual
increase at the rate of increase of the Guernsey Retail Price Index) of the NAV,
payable quarterly in arrears.
Under the Administration Agreement, the Administrator has the authority to
delegate the discharge of certain of its functions thereunder, provided that the
Administrator remains fully responsible for the acts and omissions of any
delegate it shall appoint for such purposes, other than a delegate appointed at
the request of the Company.
+------------------------------------------------------+--------------------------+
| 4. Other expenses |
+---------------------------------------------------------------------------------+
| | 26 November 2007 to 31 |
| | December 2008 |
+------------------------------------------------------+--------------------------+
| | US$'000 |
+------------------------------------------------------+--------------------------+
| Auditor's remuneration: | |
+------------------------------------------------------+--------------------------+
| - audit services | 76 |
+------------------------------------------------------+--------------------------+
| Broker fees | 53 |
+------------------------------------------------------+--------------------------+
| Custodian fees | 42 |
+------------------------------------------------------+--------------------------+
| Directors' fees | 129 |
+------------------------------------------------------+--------------------------+
| Marketing costs | 98 |
+------------------------------------------------------+--------------------------+
| Nominated adviser fees | 60 |
+------------------------------------------------------+--------------------------+
| Registrar fees | 20 |
+------------------------------------------------------+--------------------------+
| Other expenses | 137 |
+------------------------------------------------------+--------------------------+
| | ------------ |
+------------------------------------------------------+--------------------------+
| | 615 |
+------------------------------------------------------+--------------------------+
| | ------------ |
+------------------------------------------------------+--------------------------+
5. Loss per Ordinary Share
Basic
The loss per Ordinary Share is based on a net loss of US$13,502,000 and on a
weighted average number of 48,600,000 Ordinary Shares in issue throughout the
period.
Fully diluted
In accordance with International Accounting Standard 33: Earnings per share
("IAS 33"), there is no dilution as by including the Warrants the fully diluted
loss per Ordinary Share would be lower than the basic loss per Ordinary Share.
+-------------------------------------------------------------+----------------------+
| 6. Investments at fair value through profit or loss |
+------------------------------------------------------------------------------------+
| | 26 November 2007 to |
| | 31 December 2008 |
+-------------------------------------------------------------+----------------------+
| | US$'000 |
+-------------------------------------------------------------+----------------------+
| Purchases | 69,710 |
+-------------------------------------------------------------+----------------------+
| Movement in unrealised loss on investments | (10,808) |
+-------------------------------------------------------------+----------------------+
| | ------------ |
+-------------------------------------------------------------+----------------------+
| At 31 December 2008 | 58,902 |
+-------------------------------------------------------------+----------------------+
| | ------------ |
+-------------------------------------------------------------+----------------------+
| | |
+-------------------------------------------------------------+----------------------+
| Closing book cost | 69,710 |
+-------------------------------------------------------------+----------------------+
| Unrealised loss on investments | (10,808) |
+-------------------------------------------------------------+----------------------+
| | ------------ |
+-------------------------------------------------------------+----------------------+
| Fair value at 31 December 2008 | 58,902 |
+-------------------------------------------------------------+----------------------+
| | ------------ |
+-------------------------------------------------------------+----------------------+
+---------------------------+--------------+----------+----------------------------------+
| 7. Investments in associates |
+----------------------------------------------------------------------------------------+
| Details of the associated undertakings held by the Group at 31 December 2008 were as |
| follows: |
+----------------------------------------------------------------------------------------+
| | Incorporated | % of | Principal Activity |
| | | ordinary | |
| | | shares | |
| | | held | |
+---------------------------+--------------+----------+----------------------------------+
| Inveritas Global | 26 October | 37.8% | Providing safety, health, |
| Holdings Limited | 2007 | | environment, risk and quality |
| | | | ("SHERQ") products and services |
| | | | focused particularly on the |
| | | | mining and energy sectors. |
+---------------------------+--------------+----------+----------------------------------+
| Primary Holdings | 15 August | 39.0% | Acquire prime, under-utilised |
| International Trust | 2008 | | Australian farmland and develop |
| | | | a diversified, integrated group |
| | | | of properties capable of |
| | | | supplying a full range of |
| | | | premium soft commodities for |
| | | | export to Asia. |
+---------------------------+--------------+----------+----------------------------------+
The Group has taken advantage of the exemption available in IAS 28: Investments
in Associates not to account for Associates under the equity accounting method.
Should the Group not have taken advantage of this exemption the following
investments would have been classified as Associates:
+----------------------------------------------------+----------------------------------+
| Inveritas Global Holdings Limited ("IGH") |
+---------------------------------------------------------------------------------------+
| | |
+----------------------------------------------------+----------------------------------+
| Unaudited financial statements reporting date | 31 December 2008 |
+----------------------------------------------------+----------------------------------+
| Assets | US$6,526,262 |
+----------------------------------------------------+----------------------------------+
| Liabilities | US$3,794,129 |
+----------------------------------------------------+----------------------------------+
| Revenue | US$1,470,445 |
+----------------------------------------------------+----------------------------------+
| Loss | US$3,731,177 |
+----------------------------------------------------+----------------------------------+
+----------------------------------------------------+----------------------------------+
| Primary Holdings International Trust ("PHI") |
+---------------------------------------------------------------------------------------+
| | |
+----------------------------------------------------+----------------------------------+
| Unaudited half yearly financial statements | 31 December 2008 |
| reporting date | |
+----------------------------------------------------+----------------------------------+
| Assets | AUD$22,124,371 |
+----------------------------------------------------+----------------------------------+
| Liabilities | AUD$361,568 |
+----------------------------------------------------+----------------------------------+
| Revenue | AUD$666 |
+----------------------------------------------------+----------------------------------+
| Loss | AUD$1,863,461 |
+----------------------------------------------------+----------------------------------+
8. Share capital
The authorised share capital of the Company is an unlimited number of Ordinary
Shares with a par value of nil. As at 31 December 2008 the Company had issued
48,600,000 Ordinary Shares.
On 14 December 2007 the Company raised gross proceeds of US$98.0 million
(GBP48.6 million) through the issue of 48.6 million Ordinary Shares and 9.72
million Warrants (on the basis of one Warrant for every five Ordinary Shares
subscribed). Each Warrant gives the right to subscribe for one Ordinary Share at
120p for a period of five years from 14 December 2007, being the date of
admission of the Company's Ordinary Shares and Warrants to trading on AIM, a
market operated by the London Stock Exchange and listing on The Channel Islands
Stock Exchange ("Admission").
As stated as its intention in the Admission Document, the Company cancelled all
of its share premium account which arose during these issues, transferring it to
a distributable reserve during the period.
Pursuant to the authority granted at an extraordinary general meeting, the
Company has authority to utilise the distributable reserves to buy back up to
14.99% of the Ordinary Shares issued on Admission for cancellation. No shares
were purchased for cancellation during the period. This authority was renewed at
the first Annual General Meeting and the Directors intend to propose the renewal
of this authority at subsequent Annual General Meetings.
The Company has authority to purchase up to 10% of the Ordinary Shares in issue
and hold them as Treasury Shares, in accordance with The Companies (Guernsey)
Law 2008, as amended. No shares were purchased to be held as Treasury Shares
during the period.
9. Warrants
Pursuant to the placing on 14 December 2007, for every five Ordinary Shares
received each subscriber also received one Warrant.
+---------------------------------------------+--------------+---------------+------------+
| | Exercise | End of | Allotted |
| | Price | Subscription | |
| | | period | |
+---------------------------------------------+--------------+---------------+------------+
| Warrants | 120 pence | 14 December | 9,720,000 |
| | | 2012 | |
+---------------------------------------------+--------------+---------------+------------+
Registered holders of Warrants shall have rights to subscribe for Ordinary
Shares of nil par value in the Company in cash in the period from the date of
Admission up to five years following Admission for all or any of the number of
Ordinary Shares for which they are the registered holder at the price of 120p
per Ordinary Share, payable in full on subscription.
10. Net asset value per Ordinary Share
Basic
The net asset value per Ordinary Share is based on the net assets attributable
to equity Shareholders of US$79,717,000 and on 48,600,000 Ordinary Shares in
issue at the end of the period.
Fully diluted
The price of the Ordinary Shares at 31 December 2008 of 34p was below the
exercise price of the Warrants (exercise price 120p). Therefore, there is no
dilution.
11. Commitments and contingencies
In accordance with the Subordinated Shareholders' Loan Facility Agreement (the
"Agreement") between Staur Aqua AS and its Shareholders, the Group has committed
up to a further NOK 8,450,056 ($1,215,171 at the Balance sheet date) in the form
of a loan to Staur Aqua AS should it be requested by Staur Aqua AS in the
commitment period (ending on 31 March 2010) and subject to Staur Aqua AS
satisfying the conditions set out in the Agreement.
There were no other contracted commitments or contingent assets or liabilities
at 31 December 2008 that have not been disclosed in the consolidated financial
statements.
12. Events after the reporting period
In February 2009 the Group entered into two Convertible loan agreements with
Inveritas Global Holdings Limited ("IGH") whereby the Group made a total of US$
3.5 million available to IGH in the form of convertible loans.
In May 2009 the Group entered into a third Convertible loan agreement with IGH
whereby the Group will make US$ 2.5 million available to IGH in the form of a
convertible loan.
In January, March and May 2009 the Group made further loans of NOK 2,665,130
(US$ 383,086), NOK 1,776,753 (US$ 258,870) and NOK 888,609 (US$ 137,320)
respectively, to Staur Aqua AS in accordance with the Subordinated Shareholders'
Loan Facility Agreement.
In February 2009 the Group sold its equity holding in Fomento International
Limited ("FIL") back to FIL at the original purchase price (US$ 17 million).
In May 2009, the Group announced the merger of Primary Holdings International
Trust with RM.Williams Agricultural Holdings Pty Ltd ("RMWAH"). Under the terms
of the merger, the Group exchanged its holding of 18,648,018 convertible
preference units in PHI, equivalent to 39 percent of the issued share capital of
PHI, for 27,372,023 ordinary shares in RMWAH, equivalent to approximately 31
percent of the voting rights in RMWAH. In addition, the Group was granted
warrants to purchase an additional 17,272,010 RMWAH ordinary shares, half of
which are exercisable anytime within 24 months at the Australian dollar
equivalent of US$1 per share, with the remainder being exercisable anytime
within 48 months at the Australian dollar equivalent of US$1 per share (or at
the issue price of shares issued to any new investor prior to exercise). No
further cash commitment is required by the Group pursuant to the merger.
13. Related parties
The relationships between the Company and Origo Advisors Limited ("OAL"), Origo
Sino-India Plc ("OSI") and Elysium Fund Management Limited ("Elysium") are
disclosed in note 3.
During the period US$1,895,949 was payable and paid to OAL in respect of
management fees. No performance fees were paid to OAL during the period, or were
payable to OAL at the period end.
During the period US$235,554 was payable to Elysium in respect of administration
fees, including US$45,603 which remained outstanding at 31 December 2008.
At 31 December 2008, the Group owed OSI US$52,579 in respect of recharged
expenses.
The Directors are not aware of any ultimate controlling party.
14.Financial statements
The financial information set out in this announcement does not constitute
statutory accounts but has been extracted from the Group's financial statements
for the period ended 31 December 2008. The Group's annual report and
consolidated financial statements will be posted to shareholders shortly.
Further copies will be available from the Company's website:
http://www.origoresourcepartners.com/
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR GGGGVNLFGLZM
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