TIDMPRS
RNS Number : 0877R
Paternoster Resources PLC
19 September 2017
PATERNOSTER RESOURCES PLC
("Paternoster" or the "Company")
Unaudited interim results for the 6 months ended 30 June
2017
Paternoster Resources plc is pleased to announce its unaudited
interim results for the six months ended 30 June 2017.
Key points
-- Certain of Paternoster's investments have been very active during this period
-- Net asset value per share was 1.7 times the share price at the period end
-- Listed investments and cash represented 116% of market capitalisation at the period end
-- GAEA Resources Limited became a major shareholder
Chairman's review
The Company made a loss after tax of GBP793,959 for the six
months ended 30 June 2017 compared to a profit of GBP443,582 for
the same period in 2016. As at 30 June 2017, the Company's net
assets amounted to GBP2,790,495 or 0.27p per share, compared to
GBP3,584,454 or 0.35 pence per share as at 31 December 2016. The
majority of the investment portfolio comprises listed investments
and cash.
Nicholas Lee, Chairman of Paternoster, commented:
"A number of the companies in Paternoster's investment portfolio
have been very active. Overall, the Company's net assets have
decreased during the period, principally due to the fall in the
Plutus PowerGen plc ("Plutus") share price as a result of
uncertainty surrounding the statement by OFGEM with respect to
TRIAD payments to local embedded power generators. Plutus, however,
is confident in its business model going forward and its share
price has since recovered significantly, increasing by over 25% at
the period end from its low point during the first quarter of 2017.
Furthermore, since the period end, the Plutus share price has
increased by a further 60%, adding over GBP400,000 to the Company's
net assets. Ortac Resources has been restructured and refocused
and, since the period end, Paternoster has now received shares in
i3 Energy Limited via its investment in Glenwick plc, and these
shares are now listed. Also, during the first quarter, we welcomed
a new major shareholder and expect this relationship to provide
significant benefits to the Company going forward."
The key unaudited performance indicators are set out below.
COMPANY STATISTICS 30 June 2017 31 December Change
2016
------------------------------------ ----------------- ------------ --------------
Net asset value GBP2,790,495 GBP3,584,454 * 22.2%
Net asset value - fully diluted per
share 0.274p 0.353p * 22.4%
Closing share price 0.160p 0.180p * 11.1%
Share price discount to net asset
value (41.2%) (49.0%)
Market capitalisation GBP1,627,000 GBP1,830,000 * 11.1%
------------------------------------- ---------------- ------------ --------------
The Company's principal investments are summarised below:
Category Principal investments Cost or valuation at
30 June 2017 (GBP)
---------------------- ------------------------------------ ---------------------
Metal Tiger plc, MX Oil plc,
Plutus PowerGen plc, Shumba
Energy Limited, Pires Investments
plc, Ortac Resources Limited
Listed investments and Polemos plc 1,557,968
---------------------- ------------------------------------ ---------------------
Cash resources 327,228
------------------------------------------------------------ ---------------------
Cash and listed
investments 1,885,196
------------------------------------------------------------ ---------------------
Unlisted investments 932,250
------------------------------------------------------------ ---------------------
Total 2,817,446
------------------------------------------------------------ ---------------------
Recent developments with regard to certain of the Company's
investments are described below:
Plutus PowerGen plc
During Q4 2016, the Plutus share price increased from 1.5 pence
to 2.6 pence, however, in Q1 2017 it fell significantly as a result
of the uncertainly surrounding the OFGEM statement regarding TRIAD
payments to local embedded power generators. Given that Plutus
benefits from multiple earnings streams, it believes that its
business model going forward continues to be attractive. It also
has a number of projects in the pipeline that are expected to
deliver additional fees and revenues. The company is continuing to
broaden its exposure to the UK energy sector which includes looking
to develop battery energy storage projects. It has also received
planning for two further renewable green diesel power generation
sites and has recently signed a joint venture with a leading UK
supplier of gas and diesel generators. By the period end, the
company's share price had already recovered by over 25% from its
low point in Q1 2017 and, since the period end it is up a further
60%.
Alecto Minerals plc
The company continues to pursue the proposed acquisition of the
Mowana Copper Mine in Botswana which is currently in production.
Unfortunately, the completion of this acquisition has been delayed
leading to the company's shares being suspended for more than six
months pending the issue of an admission document and so, under the
AIM rules, the company's shares have now been cancelled from
listing. The company is working on progressing this transaction
with a view to coming back to the market.
Ortac Resources Limited
In April 2017, the company announced that it has entered into an
agreement to form a joint venture with a Slovakian company to
jointly develop the Sturec Gold Project at Kremnica. These
discussions continue to progress. The Sturec project has a reserve
of just under 900,000 oz gold equivalent which has reached the
pre-feasibility stage. The company's underground mining licence has
been re-issued and mining operations have now recommenced.
In May 2017, the company raised GBP2 million before expenses and
invested US$2 million in a convertible loan note issued by Casa
Mining Limited ("CASA"). Following conversion and, including its
existing investment, the company would become CASA's largest
shareholder with around 45%. CASA is a private company that holds
prospective gold mining and exploration licences in the Democratic
Republic of Congo. CASA holds three contiguous mining licenses
(covering a total 133km(2) ), issued in March 2015 and valid for 30
years.
In June 2017, CASA's most advanced project, the Akyanga Deposit,
African Mining Consultants ("AMC") provided an updated
JORC-compliant Inferred Mineral Resource of 1,046,000 oz Au at an
average grade of 2.27 g/t Au, using a US$1,250/oz gold price and a
conservative 1.50 g/t Au cut-off grade. Also, the Au Inferred
Mineral Resources at a 0.5 g/t Au cut-off grade have increased by
over 350,000 oz to 1,573,000 oz Au at an average grade of 1.65 g/t
Au. In August 2017, the company announced that drilling operations
had commenced at the Akyanga deposit which is expected to comprise
around 5,000 metres of diamond drilling.
In June 2017, the company converted certain of the loan notes it
holds in Zamsort Limited ("Zamsort"), a company based in Zambia
with interests in copper and cobalt. As a result, the company now
has a 14% equity interest in Zamsort.
Over this period, the board of the company has also been
restructured and, more recently, the company has announced its
intention to focus principally on the development of its high
potential African mining assets, namely CASA and Zamsort.
Pires Investments plc
Pires Investments plc continues to actively review various
investment opportunities with a view to undertaking a substantial
transaction in order to deliver value to shareholders.
Polemos plc
Polemos plc invested in Oyster Oil and Gas Limited ("Oyster"), a
company already listed on the TSX-V. Oyster currently operates four
blocks in the Republic of Djibouti (100% interest) of which three
blocks are located onshore and one block offshore. It also operates
a 100% working interest in a large onshore block in the Republic of
Madagascar. Oyster is expected to be listed on AIM shortly. In July
2017, the company raised around GBP500,000 for working capital
purposes and to fund the seeking of investment opportunities.
In September 2017, Polemos announced the potential acquisition
of a cyber security business SecurLinx Corporation, a US based
cyber security company, for around GBP17.8 million. As this would
constitute a reverse takeover, its shares have been suspended
pending the publication of an admission document.
Glenwick plc
The principal asset of Glenwick plc ("Glenwick") comprised
GBP1.1 million of pre-IPO convertible loan notes in i3 Energy
Limited ("i3"). i3 has now completed its IPO, the convertible loan
note has been converted and the majority of these shares in i3 have
been passed through to the shareholders of Glenwick, which includes
Paternoster. The investment made in connection with the listing of
Cora Gold ("Cora") is expected to be exchanged for new shares in
Cora which will then also be distributed to shareholders once Cora
becomes listed later in 2017.
N Lee
Chairman
19 September 2017
For more information, please contact:
Paternoster Resources plc:
Nicholas Lee, Chairman +44 (0) 20 7580 7576
Nominated Adviser and Joint Broker: +44 (0) 20 7601 6100
Stockdale Securities
Antonio Bossi/David Coaten
Joint Broker: +44 (0) 20 7562 3351
Peterhouse Capital Limited
Lucy Williams
PR:
Cassiopeia Services +44 (0) 7949 690338
Stefania Barbaglio
UNAUDITED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHSED 30 JUNE 2017
Unaudited Unaudited
6 months 6 months Audited
ended ended Year ended
30 June 30 June 31 December
2017 2016 2016
GBP GBP GBP
---------------------------------- ---------------- -------------- --------------
Net (losses)/gains on investments (627,081) 591,762 770,086
Investment income 1,871 11,437 15,090
Total income (625,210) 603,199 785,176
Administration expenses (168,749) (159,617) (299,128)
---------------------------------- ---------------- -------------- --------------
(Loss)/profit before taxation (793,959) 443,582 486,048
Taxation - - -
---------------------------------- ---------------- -------------- --------------
(Loss)/profit for the period
and total comprehensive income (793,959) 443,582 486,048
Basic (loss)/earnings per share
Continuing and total operations (0.078)p 0.048p 0.051p
Fully diluted (loss)/earnings
per share
Continuing and total operations (0.078)p 0.046p 0.051p
UNAUDITED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHSED 30 JUNE 2017
Called
up
share Share premium Retained Total
capital account Other reserves deficit equity
GBP GBP GBP GBP GBP
-------------------------- ---------- -------------- --------------- ------------ ----------
Balance at
1 January 2016 4,175,796 3,135,007 119,407 (4,481,804) 2,948,406
Profit for the year
and total comprehensive
expense - - - 486,048 486,048
-------------------------- ---------- -------------- --------------- ------------ ----------
Share issue 93,750 56,250 - - 150,000
Transfer on cancellation
of options - - (19,257) 19,257 -
Transactions with owners 93,750 56,250 (19,257) 19,257 150,000
-------------------------- ---------- -------------- --------------- ------------ ----------
Balance at
31 December 2016 4,269,546 3,191,257 100,150 (3,976,499) 3,584,454
Loss for the period
and total comprehensive
income - - - (793,959) (793,959)
-------------------------- ---------- -------------- --------------- ------------ ----------
Balance at
30 June 2017 4,269,546 3,191,257 100,150 (4,770,458) 2,790,495
-------------------------- ---------- -------------- --------------- ------------ ----------
UNAUDITED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2017
Unaudited Unaudited
6 months 6 months Audited
ended ended Year ended
30 June 30 June 31 December
2017 2016 2016
GBP GBP GBP
------------------------------- ----------- ----------- ----------------
ASSETS
Non-current assets
Available for sale investments 2,490,218 2,263,408 2,949,517
------------------------------- ----------- ----------- ----------------
Total non-current assets 2,490,218 2,263,408 2,949,517
------------------------------- ----------- ----------- ----------------
Current assets
Trade and other receivables 37,009 120,348 29,142
Cash and cash equivalents 327,228 1,104,468 648,165
------------------------------- ----------- ----------- ----------------
Total current assets 364,237 1,224,816 677,307
------------------------------- ----------- ----------- ----------------
Total assets 2,854,455 3,488,224 3,626,824
------------------------------- ----------- ----------- ----------------
LIABILITIES
Current liabilities
Trade and other payables 63,960 94,640 42,370
Total current liabilities 63,960 94,640 42,370
------------------------------- ----------- ----------- ----------------
Net assets 2,790,495 3,393,584 3,584,454
------------------------------- ----------- ----------- ----------------
EQUITY
Share capital 4,269,546 4,175,796 4,269,546
Share premium account 3,191,257 3,135,007 3,191,257
Capital redemption reserve 27,000 27,000 27,000
Share option reserve 73,150 94,003 73,150
Retained losses (4,770,458) (4,038,222) (3,976,499)
------------------------------- ----------- ----------- ----------------
Total equity 2,790,495 3,393,584 3,584,454
------------------------------- ----------- ----------- ----------------
UNAUDITED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHSED 30 JUNE 2017
Unaudited Unaudited
6 months 6 months Audited
ended ended Year ended
30 June 30 June 31 December
2017 2016 2016
GBP GBP GBP
-------------------------------------- -------------- -------------- --------------
Cash flows from operating activities
Profit/(loss) before tax (793,959) 443,582 486,048
Net (gains)/losses on investments 627,081 (666,762) (770,086)
Share based payment expense - 1,596 -
Investment income (1,871) (11,437) (15,090)
-------------------------------------- -------------- -------------- --------------
(168,749) (233,021) (299,128)
(Increase)/decrease in trade
and other receivables (7,868) 47,497 (16,296)
Increase)/(decrease) in trade
and other payables 21,590 7,971 (44,299)
-------------------------------------- -------------- -------------- --------------
Net cash used by operating activities (155,027) (177,553) (359,723)
-------------------------------------- -------------- -------------- --------------
Cash flows from investing activities
Purchase of investments (280,800) (64,593) (527,351)
Proceeds from disposal of investments 113,019 870,607 1,055,579
Investment income received 1,871 11,437 15,090
-------------------------------------- -------------- -------------- --------------
Net cash (used in)/from investing
activities (165,910) 817,451 543,318
-------------------------------------- -------------- -------------- --------------
Net (decrease)/increase in cash
and cash equivalents (320,937) 639,898 183,595
Cash and cash equivalents at
beginning of period 648,165 464,570 464,570
-------------------------------------- -------------- -------------- --------------
Cash and cash equivalents at
end of period 327,228 1,104,468 648,165
-------------------------------------- -------------- -------------- --------------
NOTES TO THE INTERIM REPORT
1. 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 financial statements for
the period ended 31 December 2016, prepared under International
Financial Reporting Standards (IFRS), have been filed with the
Registrar of Companies. The auditor's report on those financial
statements was unqualified and did not contain a statement under
section 498 (2) or (3) of the Companies Act 2006.
The interim financial information has been prepared in
accordance with the recognition and measurement principles of
International Financial Reporting Standards (IFRS) and on the same
basis and using the same accounting policies as used in the
financial statements for the year ended 31 December 2016. The
interim financial statements have not been audited or reviewed in
accordance with the International Standard on Review Engagement
2410 issued by the Auditing Practices Board.
The financial statements have been prepared on a going concern
basis under the historical cost convention.
The Directors believe that the going concern basis is
appropriate for the preparation of the financial statements as the
Company is in a position to meet all its liabilities as they fall
due.
2. The calculation of basic earnings per share is based on the
loss for the period of GBP793,959 (2016: Profit GBP443,582) and a
weighted average number of ordinary shares of 1,016,607,956 (2016:
922,857,956). The fully diluted earnings per share for the 6 months
to 30 June 2017 is based on a weighted average number of ordinary
shares of 1,016,607,956 (2016: 964,857,956).
3. No interim dividend will be paid.
4. Copies of the interim report can be obtained from: The
Company Secretary, Paternoster Resources plc, 30, Percy Street,
London W1T 2DB and are available to view and download from the
Company's website : www.paternosterresources.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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