TIDMSBLM
RNS Number : 7912J
Sable Mining Africa Limited
22 December 2015
Sable Mining Africa Ltd / Index: AIM / Epic: SBLM / Sector:
Natural Resources
22 December 2015
Sable Mining Africa Ltd ('Sable' or 'the Company')
Interim Results
Sable Mining Africa Ltd, the AIM listed company focused in the
mining sector in sub-Saharan Africa, announces its results for the
six months ended 30 September 2015.
Sable Mining Chief Executive Andrew Groves said, "Due to
shifting commodity demand fundamentals, during the six months ended
30 September 2015 we focussed on ensuring prudent allocation of
resources, enabling us to reduce capital outlay. During the period
we signed an important Memorandum of Understanding with CITIC
Construction Co., Ltd relating to the development of a coal fired
power plant at our Lubu coal project and finalised certain key
technical studies relating to our Nimba project. We remain
convinced that there remains future value in Nimba and are
constantly evaluating options to ensure that maximum value accrues
to our shareholders. Whilst we operate in this uncertain and
depressed environment we are also evaluating additional projects
that have potential to generate shareholder value."
Chairman's Statement
Sable Mining's current project portfolio covers two commodities,
iron ore and coal. Whilst the resource sector has been hit by
unparalleled turbulence in recent times, the Company has continued
to look to add value to its iron ore and coal assets, further
advancing the Nimba Iron Ore Project in South East Guinea ('Nimba')
toward full feasibility and signing a development agreement
relating to its coal assets in Zimbabwe. However, the Board is
conscious that the current price environment for its commodity
portfolio is not favourable. The Board is therefore reviewing
activities to suit the current environment and to ensure that the
existing cash is deployed in a manner consistent with current
global trends.
Nimba was discovered by the Company's geologists in early 2012
and has been proven to be a high-grade, low-capital intensity
asset. That said and as investors will be very well aware, the
appetite for iron ore development projects has waned over the past
two years, and there is reducing optimism for a near term recovery.
Accordingly, during the period under review the Company has pursued
certain key studies relating to Nimba in readiness for completion
of a bankable feasibility study at the appropriate time, whilst
ensuring that available funds are deployed in the most advantageous
manner. As previously reported, during this period, where work is
focussed on refining these necessary studies, our non-core
workforce in country has been reduced to conserve funds pending an
improvement in the macro-economic environment.
During the period, metallurgical testwork from analysis
conducted on Plateau 2 was finished, thereby providing the basis
for detailed mine scheduling, which demonstrated a potential life
of mine of more than 20 years, with high and medium grade products
(grades of 63.33% and 62.11% Fe were returned from the lump and
fines product respectively, and the mechanical and thermal
properties of the proposed premium lump were proven to be
excellent). There remains potential upside from further exploration
and development work at the additional two plateaux. Indeed, the
mine scheduling completed suggests that in the right pricing
environment, revenue could be generated from this initial mine site
to support the continued development of the wider project,
including Plateau 3 and the larger Plateau 1, which has, to date,
been the subject of only limited reconnaissance drilling. With the
current market conditions as they are, the timescales for
completion of further studies are under evaluation and further
updates will be provided in due course.
We maintain that Nimba has inherent future value, because of its
unique combination of characteristics, namely favourable geology,
metallurgy and access to infrastructure. Nimba has a current JORC
Compliant Resource Estimate of 205.2 million tonnes ('Mt') at an
average in-situ grade of 57.8% iron ('Fe') at a Fe cut-off of 40%,
with 195.0Mt falling within the higher confidence Measured and
Indicated category, which places it as one of the largest
unexploited high grade iron ore deposits in Africa.
With regards to our coal interests, these are located in the Mid
Karoo Zambezi coal basin in the established Hwange mining district
of north-western Zimbabwe (being the Lubu Coal Project, which has
an initial modelled in-situ seam tonnage of 786 million tonnes) and
in the adjacent Lusulu area of the Kariba Coal Basin (being the
Lubimbi Coal Project, which has a suggested in-situ tonnage of 550
million tonnes). With Zimbabwe and the wider southern Africa region
experiencing a power deficit, Sable Mining has identified an
opportunity to address the shortage as a potential coal producer
and in respect of power plant development.
In September 2015, a Memorandum of Understanding was signed with
CITIC Construction Co., Ltd ('CITIC'), a subsidiary of CITIC Group,
a Chinese based construction and services provider with a view to
developing a 600MW coal-fired power plant at the Company's Lubu
Coal Project. Under the terms, Sable Mining and CITIC will explore
the opportunities of using their respective expertise to work
together to develop a commercial coal-fired power station at Lubu,
with the intention of using coal mined at the Company's Lubu Coal
Project supplying the station.
Considering the very real problem of energy deficits in Southern
Africa and the increasing importance placed on energy security
worldwide, the Board believes that the development of a coal-fired
power station in Zimbabwe would be a major step forward in tackling
this crisis and one which would receive governmental support. The
Company is currently evaluating opportunities to move forward with
these development plans and will update the market in due course
with further updates although at this stage it is difficult to
provide a clear timetable with confidence.
Financial Review
Sable Mining is reporting for the six months ended 30 September
2015 a pre-tax loss on continuing activities of US$1.27m (2014:
pre-tax loss on continuing activities of US$3.32m). As at 30
September 2015 cash balances were US$5.0m (2014: US$11.5m).
Outlook
The challenging market conditions currently facing the resource
industry have meant that the Board has had to review and refine its
development strategies during the period under review, including
implementation of a cost reduction programme and reduction of
capital outlays to ensure funds are effectively and strategically
utilised. The Board continue to assess the best way to generate and
maximise shareholder value both from its current asset base and
other opportunities as they arise.
I would like to thank our shareholders for their continued
support during this turbulent time in the resources market and look
forward to providing further updates in due course.
Jim Cochrane
Chairman
21 December 2015
For further information please visit www.sablemining.com or
contact:
Andrew Groves Sable Mining Africa Tel: 020 7408 9200
Ltd
David Foreman Cantor Fitzgerald Europe Tel: 020 7894 7000
Stewart Dickson Cantor Fitzgerald Europe Tel: 020 7894 7000
Richard Greenfield GMP Securities Tel: 020 7647 2836
Hugo de Salis St Brides Partners Ltd Tel: 020 7236 1177
Charlotte Heap St Brides Partners Ltd Tel: 020 7236 1177
Condensed Consolidated Income Statement
For the six month period ended 30 September 2015
Unaudited Unaudited Audited
6 months 6 months year to
to to 31 March
30 September 30 September 2015
2015 2014
Note $'000 $'000 $'000
----- -------------- ----------------- --------------
Continuing Operations
Operating expenses (2,002) (3,528) (6,010)
Impairment of plant and
equipment - - -
Impairment of intangible
assets - - (6,511)
Impairment of other receivables - (28) (70)
Operating loss (2,002) (3,556) (12,591)
Other (losses)/gains 5 717 (106) 1,296
Net finance income/(cost) 11 344 58
Loss before taxation (1,274) (3,318) (11,237)
Income tax charge - (2) -
-------------- ----------------- --------------
Loss for the period from
continuing operations (1,274) (3,320) (11,237)
Discontinued Operations
Loss for the period from
discontinued operations 6 (7,951) (23) (11)
-------------- ----------------- --------------
Loss for the period (9,225) (3,343) (11,248)
-------------- ----------------- --------------
Loss for the period attributable
to owners of the parent
company (8,891) (3,146) (10,339)
Loss for the period attributable
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to non-controlling interests (334) (197) (909)
-------------- ----------------- --------------
Loss for the period (9,225) (3,343) (11,248)
-------------- ----------------- --------------
Loss per share
- Basic and diluted (cents) 8 (0.8 cents) (0.3 cents) (0.9 cents)
Loss per share from continuing
operations
- Basic and diluted (cents) 8 (0.1 cents) (0.3 cents) (0.9 cents)
Loss per share from discontinued
operations
- Basic and diluted (cents) 8 (0.7 cents) (0 cents) (0 cents)
Condensed Consolidated Statement of Comprehensive Income
For the six month period ended 30 September 2015
Unaudited Unaudited Audited
6 months 6 months year to
to 30 September to 31 March
2015 30 September 2015
2014
$'000 $'000 $'000
----------------- -------------- ----------
Foreign exchange translation
differences (699) (35) (1,184)
----------------- -------------- ----------
Other comprehensive loss
for the period (699) (35) (1,184)
Loss for the period (9,225) (3,343) (11,248)
Total comprehensive loss
for the period (9,924) (3,378) (12,432)
----------------- -------------- ----------
Total comprehensive loss
for the period attributable
to owners of the parent company (9,590) (3,181) (11,523)
Total comprehensive loss
for the period attributable
to non-controlling interests (334) (197) (909)
----------------- -------------- ----------
(9,924) (3,378) (12,432)
----------------- -------------- ----------
Condensed Consolidated Balance Sheet
As at 30 September 2015
Unaudited Unaudited Audited
As at As at As at
30 September 30 September 31 March
2015 2014 2015
Note $'000 $'000 $'000
-------------- -------------- ----------
Assets
Non-current assets
Intangible assets 31,758 33,965 29,910
Property, plant and equipment 2,565 4,095 3,418
Finance asset investment - - -
Loan receivable - - -
-------------- -------------- ----------
Total non-current assets 34,323 38,060 33,328
Current assets
Inventory - - -
Trade and other receivables 1,109 646 1,021
Cash and cash equivalents 4,968 11,474 6,249
-------------- -------------- ----------
Total current assets 6,077 12,120 7,270
-------------- -------------- ----------
Disposal Group Assets 7 - 12,985 12,448
-------------- -------------- ----------
Total assets 40,400 63,165 53,046
-------------- -------------- ----------
Liabilities
Non-current liabilities
Long-term borrowings - - -
Deferred tax liability - - -
-------------- -------------- ----------
Total non-current liabilities - - -
-------------- -------------- ----------
Current liabilities
Short-term borrowings - - -
Trade and other payables (1,321) (2,564) (1,640)
-------------- -------------- ----------
Total current liabilities (1,321) (2,564) (1,640)
Disposal Group Liabilities 7 - (11,485) (11,379)
-------------- -------------- ----------
Total liabilities (1,321) (14,049) (13,019)
-------------- -------------- ----------
Net Assets 39,079 49,116 40,027
-------------- -------------- ----------
Equity
Issued share capital 9 274,754 274,754 274,754
Share based payment
reserve 10 1,194 1,146 1,194
Warrant reserve 7,462 8,395 7,462
Translation reserve (2,117) (9,245) (10,391)
Retained earnings (242,702) (227,474) (233,811)
-------------- -------------- ----------
Total equity attributable
to the owners of the parent
company 38,591 47,576 39,208
Non-controlling interests 488 1,540 819
-------------- -------------- ----------
Total Equity 39,079 49,116 40,027
-------------- -------------- ----------
Condensed Consolidated Statement of
Changes
in Equity
Share-based
Share payment Translation Retained Non-controlling
Capital reserve Warrant reserve earnings interests Total
$'000 $'000 reserve $'000 $'000 Total $'000 $'000
--------- ------------ -------- ------------- ---------- --------- ----------------- --------
Balances at
01 April
2014 274,754 1,096 8,395 (9,207) (224,405) 50,633 1,728 52,361
Loss for 6
months to 30
September
2014 - - - - (3,146) (3,146) (197) (3,343)
Other
comprehensive
income
Exchange
translation
differences
on foreign
operations - - - (38) 77 39 9 48
--------- ------------ -------- ------------- ---------- --------- ----------------- --------
Total
comprehensive
income
for the
period - - - (38) (3,069) (3,107) (188) (3,295)
Transactions
with owners
Share issues -
warrants
exercised - 50 - - - 50 - 50
Share based - -
payment charge - - - - - -
Total
transactions
with
owners - 50 - - - 50 - 50
Balances at
30 September
2014 274,754 1,146 8,395 (9,245) (227,474) 47,576 1,540 49,116
Loss for 6
months to 31
March 2015 - - - - (6,337) (6,337) (721) (7,058)
Other
comprehensive
income
Exchange
translation
differences
on foreign
operations - - - (1,146) - (1,146) - (1,146)
Total
comprehensive
income
for the
period - - - (1,146) (6,337) (7,483) (721) (8,204)
Transactions
with owners
Share issues -
warrants
lapsed - - (933) - - (933) - (933)
Share issues -
warrants
exercised - 48 - - - 48 - 48
Total
transactions
with
owners - 48 - - - (885) - (885)
Balance at
31 March
2015 274,754 1,194 7,462 (10,391) (233,811) 39,208 819 40,027
Loss for 6
months to 30
September
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2015 - - - - (8,891) (8,891) (334) (9,225)
Other
comprehensive
income
Release from
Translation
Reserve on
sale of
foreign
subsidiary - - - 8,973 - 8,973 - 8,973
Exchange
translation
differences
on foreign
operations - - - (699) - (699) 3 (696)
--------- ------------ -------- ------------- ---------- --------- ----------------- --------
Total
comprehensive
income
for the
period - - - 8,274 (8,891) (617) (331) (948)
Balance at 30
September
2015 274,754 1,194 7,462 (2,117) (242,702) 38,591 488 39,079
--------- ------------ -------- ------------- ---------- --------- ----------------- --------
Condensed Consolidated Statement of Cash Flows
For the six months to 30 September 2015
Unaudited Unaudited Audited
6 months to 6 months to year to
30 September 30 September 31 March
2015 2014 2015
$'000 $'000 $'000
-------------- -------------- ----------
OPERATING ACTIVITIES
Loss for the period from continuing operations
before taxation (1,274) (3,318) (11,248)
Adjustments for:
- Depreciation of property, plant and
equipment 465 381 1,077
- Amortisation of intangible assets - - -
- Loss on foreign exchange 79 503 862
- Share based payment charge - 50 98
- Net interest (income)/expense (11) (32) (58)
- Other gains and losses (717) (106) (1,296)
- Impairment of intangible assets - - 6,511
- Impairment of other receivables - 28 70
-------------- -------------- ----------
Operating cash flow before movements
in working capital (1,458) (2,494) (3,984)
Working capital adjustments:
- Decrease in receivables (88) 25 (351)
- Decrease in payables (319) 110 (1,125)
-------------- -------------- ----------
Cash used in operations (1,865) (2,359) (5,460)
-------------- -------------- ----------
Finance cost - (32) -
Interest received - - -
-------------- -------------- ----------
Net cash used in continuing operating
activity (1,865) (2,391) (5,460)
-------------- -------------- ----------
Net cash used in discontinued operating
activity (62) (81) (98)
-------------- -------------- ----------
Net cash used in operating activities (1,927) (2,472) (5,558)
-------------- -------------- ----------
INVESTING ACTIVITIES
Purchase of intangible assets (1,597) (5,345) (7,791)
Purchase of property, plant and equipment - (260) (264)
Proceeds from disposal of property, plant
and equipment 204 - 3
Proceeds from sale of subsidiaries, net
of cash received 1,975 - -
Decrease in loans and other long term
receivables - (312) -
-------------- -------------- ----------
Net cash used in investing in continuing
activities 582 (5,917) (8,052)
Net cash used in investing in discontinued
activities - - -
-------------- -------------- ----------
Net cash used in investing activities 582 (5,917) (8,052)
Net decrease in cash and cash equivalents (1,345) (8,389) (13,610)
Cash and cash equivalents at start of
the period 6,249 20,075 20,075
Effect of foreign exchange rate changes 64 (212) (216)
-------------- -------------- ----------
Cash and cash equivalents at the end
of the period 4,968 11,474 6,249
-------------- -------------- ----------
Notes to the Unaudited Interim Consolidated Financial
Statements
For the six months to 30 September 2015
1. General information
Sable Mining Africa Limited is incorporated in the British
Virgin Islands under the British Virgin Islands Business Companies
Act 2004. The address of the registered office is Commerce House,
Wickhams Cay 1, PO Box 3140, Road Town, Tortola, British Virgin
Islands. The Company was incorporated on 27 April 2007.
The Company is listed on the AIM Market of London Stock Exchange
plc.
The unaudited interim consolidated financial statements for the
six months ended 30 September 2015 were approved for issue by the
board on 21 December 2015.
The figures for the six months ended 30 September 2015 and 30
September 2014 are unaudited and do not constitute full accounts.
The comparative figures for the period ended 31 March 2015 are
extracts from the annual report and do not constitute statutory
accounts.
The interim consolidated financial statements have been prepared
in US Dollars as this is the currency of the primary economic
environment in which the Group operates.
2. Basis of preparation
The basis of preparation and accounting policies set out in the
Annual Report and Accounts for the year ended 31 March 2015 have
been applied in the preparation of these interim condensed
consolidated financial statements. These are in accordance with the
recognition and measurement criteria of International Financial
Reporting Standards ("IFRSs") as adopted by the European Union
("EU") and with those of the Standing Interpretations issued by the
International Financial Reporting Interpretations Committee
("IFRIC") of the International Accounting Standards Board ("IASB").
References to "IFRS" hereafter should be construed as references to
IFRSs as adopted by the EU.
3. Accounting policies
The accounting policies and methods of calculation adopted are
consistent with those of the financial statements for the year
ended 31 March 2015.
4. Segment reporting
The directors consider that the Group's continuing activities
comprise one business segment, exploration and other unallocated
expenditure in one geographical segment, Africa.
Exploration Unallocated Total
$'000 $'000 $'000
------------ ------------ --------
Period ending 30 September 2015
Revenue - - -
Segment results
- Operating loss (1,714) (288) (2,002)
- Other gains 23 694 717
- Net finance income - 11 11
------------ ------------ --------
Loss before tax from continuing
activities (1,691) 417 (1,274)
Income tax charge - - -
------------ ------------ --------
Loss for the year from continuing
activities (1691) 417 (1,274)
------------ ------------ --------
Exploration Unallocated Total
$'000 $'000 $'000
------------ ------------ --------
Period ending 30 September 2014
Revenue - - -
Segment results
- Operating loss (2,099) (1,457) (3,556)
- Other gains 623 (279) 344
- Net finance income - (106) (106)
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------------ ------------ --------
Loss before tax from continuing
activities (1,476) (1,842) (3,318)
------------ ------------ --------
Income tax charge (2) - (2)
------------ ------------ --------
Loss for the year from continuing
activities (1,478) (1,842) (3,320)
------------ ------------ --------
The segment items included in the income statement for the
period are as follows:
Continuing Discontinued Group
Exploration Unallocated Bio-energy
$'000 $'000 $'000 $'000
------------ ------------ ------------- ------
2015
Depreciation 464 1 - 465
2014
Depreciation 381 - - 381
The segment assets and liabilities at 30 September and the
capital expenditure for the period then ended are as follows:
Continuing Discontinued Group
Exploration Unallocated Bio-energy/DMC
$'000 $'000 $'000 $'000
------------ ------------ --------------- ---------
2015
Assets 35,436 4,964 - 40,400
Liabilities (762) (110) (449) (1,321)
Capital Expenditure
- Intangible assets 1,597 - - 1,597
2014
Assets 38,314 11,609 13,242 63,165
Liabilities (2,310) (254) (11,485) (14,049)
Capital Expenditure
- Intangible assets 5,272 - 73 5,345
Segment assets comprise intangible assets, property, plant and
equipment, trade and other receivables and cash and cash
equivalents. Segment liabilities comprise operating
liabilities.
Capital expenditure comprises additions to intangible assets and
to property, plant and equipment.
5. Other gains and losses Sept 2015 Sept 2014 Mar 2015
$'000 $'000 $'000
---------- ---------
Foreign exchange (loss)/gain 85 (106) (465)
Aircraft charter revenue 145 - 537
Loss on disposal of fixed assets (204) - (3)
Disposal of subsidiary 691 - -
Historic accruals and provisions
written off - - 1,227
----------
717 (106) 1,296
---------- ========== =========
The disposal of subsidiary relates to the sale of the Company's
60% shareholding in Salmec Limited in August 2015 for $700k. The
profit on disposal of $691k was arrived at by deducting legal fees
relating to the sale of $6k and the $3k net asset value of Salmec
at the time of sale.
6. Discontinued activities
The discontinued operation was as a result of the strategy to
move away from the bio-ethanol related assets and this segment's
trading results are included in the income statement as a single
line below the loss after taxation from continuing operations.
Foreign exchange movements relating to the bio-ethanol related
assets resulted in a gain of $293,000 during the year. However,
this has been offset against the loss on the sale of Delta Mining
Consolidated of $8,244,000 (see below) to give a net loss for
discontinued activities of $7,951,000.
The asset held for sale that is listed as a single line item
under discontinued operations in 2015 represents the Group's share
in the loss of Delta Mining Consolidated Limited up to its sale in
August 2015 and the loss generated by the sale. More information
about the results of this disposal asset are given in Note 7.
The results for the discontinued operations are as follows:
Sept 2015 Sept 2014 Mar 2014
$'000 $'000 $'000
---------- ---------- ---------
Operating expenditure (7,951) (23) (11)
---------- ---------- ---------
Operating loss (7,951) (23) (11)
----------
Loss before taxation (7,951) (23) (11)
Taxation - - -
----------
Loss after taxation (7,951) (23) (11)
---------- ---------- ---------
All the above loss after taxation is attributable to the owners
of the parent.
There were cash outflows of $62,000 from discontinued operations
relating to DMC included in the consolidated statement of cash
flows (Sept 2014: $81,000).
7. Assets Held For Sale
Assets of disposal
group classified as
held for sale
---------------------------------------------------------- ----------- ------------- ----------
Sept 2015 Sept 2014 Mar 2015
---------- --------------------------------------- ----- ----------- ------------- ----------
$'000 $'000 $'000
---------- --------------------------------------- ----- ----------- ------------- ----------
Property, plant and - - -
equipment
---------------------------------------------------------- ----------- ------------- ----------
Intangible Assets - 11,532 10,818
---------------------------------------------------------- ----------- ------------- ----------
Financial Asset Investment
(see a) - 1,134 1,129
---------------------------------------------------------- ----------- ------------- ----------
Other current
assets - 319 501
--------------------------------------------------- ----- ----------- ------------- ----------
Total - 12,985 12,448
--------------------------------------------------- ----- ----------- ------------- ----------
Liabilities of disposal
group classified as
held for sale
---------------------------------------------------------- ----------- ------------- ----------
Short term loans - (3,907) (3,784)
---------------------------------------------------------- ----------- ------------- ----------
Long term loans - (7,329) (7,410)
---------------------------------------------------------- ----------- ------------- ----------
Other current
liabilities - (249) (185)
--------------------------------------------------- ----- ----------- ------------- ----------
Total - (11,485) (11,379)
--------------------------------------------------- ----- ----------- ------------- ----------
Net Assets of disposal
group classified as
held for sale - 1,500 1,069
---------------------------------------------------------- ----------- ------------- ---------- -------------
The company entered into an agreement to sell its 63.5%
shareholding in Delta Mining Consolidated Limited ('DMC')
on 29 May 2014. Before completion could occur various
consents had to be obtained from the South African Ministry
of Mines and Reserve Bank. These consents were obtained
in August 2015 and the sale went ahead for a cash consideration
of $1.281m. Consequently DMC was classified in the group
accounts as an asset held for sale disposal group under
discontinued operations until its sale.
In accordance with IFRS 5 the assets and liabilities
of DMC were held at fair value less costs to sell. This
means that whilst DMC was held in our books at $219k
at the time of sale, as stated above, the Company actually
received a cash consideration of $1.281m when the deal
completed. However, the Company recorded a nominal loss
on the sale of its shares in DMC because of the release
of accumulated foreign exchange losses of $9m (previously
held in the Foreign Exchange Translation Reserve) to
the Income Statement.
The group has a contingent asset of $18.5m (2014: $18.5m)
relating to the loan from Tanaka Investments Ltd to
Delta Mining Consolidated Limited that will be repaid
once the purchasers of DMC have the mine in operation.
The loan will be repaid over a number of years based
on a quasi-royalty per tonne produced model. The directors
have not included this as an asset on the Balance Sheet
due to the uncertainty over the timing of when the purchasers
of DMC are likely to bring the Rietkuil Coal mine into
operation.
------------------------------------------------------------------------------------------------------------
Analysis of the results of the disposal group and
re-measurement to asset held for sale is as follows:
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---- -------------------------------------------------------------------------------------------------------
Sept Sept 2014 Mar 2015
2015
---------- ----------------------------------------- ---------------- ------------- ---------- ---------
$'000 $'000 $,000
---------- ----------------------------------------- ---------------- ------------- ---------- ---------
DMC
----------------------------------------------------- ---------------- ------------- ---------- ---------
- -
----------------------------------------------------- ---------------- ------------- ---------- ---------
Other operating expenses (771) (9) (651)
----------------------------------------------------------------------- ------------- ---------- ---------
Loss before tax (771) (9) (651)
----------------------------------------------------------------------- ------------- ---------- ---------
Tax - - 220
----------------------------------------------------------------------- ------------- ---------- ---------
Loss after tax (771) (9) (431)
----------------------------------------------------------------------- -------------
Realisation of historic foreign (8,973) - -
exchange losses
----------------------------------------------------------------------- -------------
Net assets at date of sale 219 - -
----------------------------------------------------------------------- -------------
Sale proceeds 1,281 - -
----------------------------------------------------------------------- ------------- ---------- ---------
Lost on sale of subsidiary (8,244) - -
----------------------------------------------------------------------- -------------
ProCana
--------------------------------------------------------------------------------------
Foreign exchange translation 293 (14) 420
----------------------------------------------------------- -------------------------
(Loss) for the year from asset
held for sale (7,951) (23) (11)
----------------------------------------------------------------------- ------------- ---------- ---------
The company entered into an agreement to sell its 63.5%
shareholding in Delta Mining Consolidated Limited (DMC) on 29 May
2014. Before completion could occur various consents had to be
obtained from the South African Ministry of Mines and Reserve Bank.
These consents were obtained in August 2015 and the sale went ahead
for a cash consideration of $1.281m. Consequently DMC was
classified in the group accounts as an asset held for sale disposal
group under discontinued operations until its sale.
In accordance with IFRS 5 the assets and liabilities of DMC were
held at fair value less costs to sell. This means that whilst DMC
was held in our books at $219k at the time of sale, as stated
above, the Company actually received a cash consideration of
$1.281m when the deal completed. However, the Company recorded a
nominal loss on the sale of its shares in DMC because of the
release of accumulated foreign exchange losses of $9m (previously
held in the Foreign Exchange Translation Reserve) to the Income
Statement.
The group has a contingent asset of $18.5m (2014: $18.5m)
relating to the loan from Tanaka Investments Ltd to Delta Mining
Consolidated Limited that will be repaid once the purchasers of DMC
have the mine in operation. The loan will be repaid over a number
of years based on a quasi-royalty per tonne produced model. The
directors have not included this as an asset on the Balance Sheet
due to the uncertainty over the timing of when the purchasers of
DMC are likely to bring the Rietkuil Coal mine into operation.
Analysis of the results of the disposal group and re-measurement
to asset held for sale is as follows:
-------------------------------------------------------------------------------------
Sept 2015 Sept 2014 Mar 2015
----------------------------------------- --- ----------- ---------- ---------
$'000 $'000 $,000
----------------------------------------- --- ----------- ---------- ---------
DMC
------------------------------------------ --- ----------- ---------- ---------
- -
------------------------------------------ --- ----------- ---------- ---------
Other operating expenses (771) (9) (651)
----------------------------------------------- ----------- ---------- ---------
Loss before tax (771) (9) (651)
----------------------------------------------- ----------- ---------- ---------
Tax - - 220
----------------------------------------------- ----------- ---------- ---------
Loss after tax (771) (9) (431)
----------------------------------------------- -----------
Realisation of historic foreign (8,973) - -
exchange losses
----------------------------------------------- -----------
Net assets at date of sale 219 - -
----------------------------------------------- -----------
Sale proceeds 1,281 - -
----------------------------------------------- ----------- ---------- ---------
Lost on sale of subsidiary (8,244) - -
----------------------------------------------- -----------
ProCana
------------------------------------------------------------
Foreign exchange translation 293 (14) 420
------------------------------------------- ---------------
(Loss) for the year from asset
held for sale (7,951) (23) (11)
----------------------------------------------- ----------- ---------- ---------
8. Loss per share
The calculation of basic and diluted loss per share is based on
the following data:
Unaudited Unaudited Audited
6 months 6 months year to
to 30 September to 30 September 31 March
2015 2014 2015
$'000 $'000 $'000
----------------- ----------------- ----------
Loss
Loss for the purpose of basic
loss per share (loss for the
period attributable to owners
of the parent company) (8,891) (3,146) (10,339)
Loss for the purpose of basic
loss per share on continuing
activities (result for the period
on continuing activities attributable
to owners of the parent company) (1,228) (3,126) (10,329)
Loss for the purpose of basic
loss per share on discontinued
activities (result for the period
on discontinued activities attributable
to owners of the parent company) (7.663) (20) (10)
Number of shares
Weighted average number of ordinary
shares for the purposes of basic
loss per share 1,108,627,584 1,108,473,474 1,108,627,584
-------------- ---------------- --------------
Basic and diluted loss per share (0.8 cents) (0.3 cents) (0.9 cents)
Basic and diluted loss per share
on continuing activities (0.1 cents) (0.3 cents) (0.9 cents)
Basic and diluted loss per share
on discontinued activities (0.7 cents) (0.0 cents) (0.0 cents)
(MORE TO FOLLOW) Dow Jones Newswires
December 22, 2015 02:00 ET (07:00 GMT)
No dilution arises as a result of the total loss and the loss on
continuing activities for the period (2014: nil).
9. Share capital
Ordinary shares of
no par value
Allotted and fully
paid
Number $'000
-------------- --------
At 30 September 2012 927,523,474 248,623
Issue of shares on exercise of warrants 500,000 175
-------------- --------
At 31 March 2013 928,023,474 248,798
Issue of shares on exercise of warrants 450,000 14
-------------- --------
At 31 September 2013 928,473,474 248,812
Issue of shares to fund Group activities 180,000,000 27,398
Less share issue costs - (1,456)
-------------- --------
At 31 March 2014 and 30 September
2015 1,108,473,474 274,754
-------------- --------
On 29 May 2012, 50,000 ordinary shares were issued pursuant to
the exercise of warrants under the block admission dated 29 May
2012 with an exercise price of 2p. GBP1,000 cash was received for
these shares.
On 5 October 2012, 50,000 ordinary shares were issued pursuant
to the exercise of warrants under the block admission dated 29 May
2012 with an exercise price of 2p. GBP1,000 cash was received for
these shares.
On 16 October 2012, 100,000 ordinary shares were issued pursuant
to the exercise of warrants under the block admission dated 29 May
2012 with an exercise price of 2p. GBP2,000 cash was received for
these shares.
On 7 January 2013, 150,000 ordinary shares were issued pursuant
to the exercise of warrants under the block admission dated 29 May
2012 with an exercise price of 2p. GBP3,000 cash was received for
these shares.
On 8 February 2013, 200,000 ordinary shares were issued pursuant
to the exercise of warrants under the block admission dated 29 May
2012 with an exercise price of 2p. GBP4,000 cash was received for
these shares.
On 3 June 2013, 450,000 ordinary shares were issued pursuant to
the exercise of warrants under the block admission dated 29 May
2012 with an exercise price of 2p. GBP9,000 cash was received for
these shares.
On 5 November 2013, 180,000,000 ordinary shares were issued
fully paid for cash at 9.5 pence per ordinary share.
The Company has one class of ordinary share which carries no
right to fixed income.
Share Options
At 30 September 2015, the following options over ordinary shares
of the Company had been granted and not yet exercised:
Number of Exercise
Date of Grant shares price Exercise period
----------------- ---------- --------- --------------------------------
17 March 2011 to 16 March
17 March 2010 1,000,000 28p 2016
01 September 01 September 2011 to 31 August
2010 2,000,000 20p 2016
01 October 2011to 30 September
01 October 2010 600,000 20p 2016
01 October 2012 to 30 September
01 October 2010 500,000 20p 2017
01 May 2013 250,000 8p 1 May 2014 to 30 April 2019
20 January 2015 to 20 January
20 January 2014 2,000,000 10p 2020
Warrants
At 30 September 2015, the following warrants are in issue and
have vested:
Number Exercise
Date of grant of shares price Exercise period
------------------ ----------- --------- -----------------------
11 May 2011 15,000,000 2p Until 10 December 2015
5 September 2012 2,000,000 2p Until 10 December 2015
1 March 2012 5,000,000 2p Until 10 December 2015
30 November 2012 4,000,000 2p Until 10 December 2015
24 October 2013 5,000,000 2p Until 10 December 2015
24 October 2013 2,000,000 2p Until 10 December 2015
10. Share based payment
Equity-settled share option plan
The Group unapproved share option scheme was established to
provide equity incentives to the directors of, employees of and
consultants to the Company. The scheme is administered by the
Board. Awards to directors are recommended by the Remuneration
Committee. The options are exercisable during a period (being not
less than one year), such period to commence on a date determined
by the Board, but not longer than five years from the date that
they first become exercisable. Options are forfeited if the
employee leaves the Group before the options vest.
At 30 September 2015, the following options over ordinary shares
of the Company had been granted and not yet exercised:
Number of Weighted average
Date of grant options Exercise price
---------------------------------- ------------ -----------------
Outstanding at 1 April 2014 12,100,000 21.5p
Granted during the period 2,250,000 9.8p
Lapsed during the period (8,000,000) 21.3p
------------ -----------------
Outstanding at 30 September 2014 6,350,000 17.6p
Granted during the period - -
Lapsed during the period - -
------------ -----------------
Outstanding at 1 April 2015 6,350,000 17.6p
Granted during the period - -
Lapsed during the period - -
------------ -----------------
Outstanding at 30 September 2015 6,350,000 17.6p
------------ -----------------
Exercisable at 30 September 2015 6,350,000 17.6p
------------ -----------------
Exercisable at 31 March 2015 6,350,000 17.6p
------------ -----------------
Exercisable at 30 September 2015 6,350,000 17.6p
------------ -----------------
At 30 September 2015, the weighted average remaining contractual
life of the options outstanding was 1.57 years (2014: 2.56
years)
Equity settled warrants
At 30 September 2015, the following warrants have been issued
and remain unexercised:
Number of Weighted average
Date of grant options Exercise price
---------------------------------- ------------ -----------------
Outstanding at 1 April 2014 42,000,000 4.8p
Granted during the period - -
Exercised during the period - -
------------ -----------------
Outstanding at 30 September 2014 42,000,000 4.8p
Granted during the period - -
Lapsed during the period (9,000,000) 15.2p
------------ -----------------
Outstanding at 1 April 2015 33,000,000 2.0p
Granted during the period - -
Exercised during the period - -
------------ -----------------
Outstanding at 30 September 2015 33,000,000 2.0p
============ =================
Exercisable at 30 September 2015 33,000,000 2.0p
------------ -----------------
Exercisable at 31 March 2015 33,000,000 2.0p
------------ -----------------
Exercisable at 30 September 2014 42,000,000 4.8p
------------ -----------------
Warrants not issued
Ely Place Nominees Limited holds an additional 2,000,000
warrants to be distributed among the employees of, directors of and
consultants to the Company as instructed by the Board.
In addition, Monford Holdings Limited holds an additional
18,000,000 warrants to be distributed among the employees of,
directors of and consultants to the Company as instructed by the
Board and Letsun Limited holds an additional 5,000,000 warrants to
be distributed among the employees of, directors of and consultants
to the Company as instructed by the Board.
At 30 September 2015, the weighted average remaining contractual
life of the warrants outstanding was 0.19 years (2014: 0.59
years).
(MORE TO FOLLOW) Dow Jones Newswires
December 22, 2015 02:00 ET (07:00 GMT)
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