TIDMSMA
RNS Number : 9394Y
Sovereign Mines of Africa PLC
23 May 2016
Sovereign Mines of Africa PLC
("SMA" or "the Company")
Sovereign Mines of Africa PLC (AIM:SML), the gold mining
exploration Company with properties in the Republic of Guinea in
West Africa, today announces its audited results for the year ended
31 December 2015.
Enquiries:
SOVEREIGN MINES OF AFRICA PLC
Giles Clarke - Chairman c/o Billy Clegg +44 20 3757 6983
Nathan Steinberg - Finance Director +44 20 7269 7680
SHORE CAPITAL - NOMINATED ADVISER & BROKER
Toby Gibbs/Bidhi Bhoma - Corporate Finance
Jerry Keen - Corporate Broking +44 207 408 4090
CAMARCO
Billy Clegg / Gordon Poole +44 20 3757 6983
SOVEREIGN MINES OF AFRICA PLC
CHAIRMAN'S STATEMENT
In the Chairman's Statement last year, my predecessor announced
that the Board had been seeking a strategic partner to fund the
necessary and contingent expenditure to advance the Mandiana Gold
Project to a definitive feasibility study. Although the discussions
continued throughout the whole of the last financial year,
unfortunately nothing came to fruition. The Board is still
continuing discussions with potential partners but to date no
agreement has been concluded.
As a result, due to the potential uncertainty your Board has
considered it prudent to impair the value of the Group's
exploration assets in full.
There will be a loss in the year of GBP1,417,875 compared with
GBP3,879,625 in 2014, which includes an impairment of
GBP1,278,059.
On 30 December 2015 Rupert Fraser and I joined the Board and
invested in the business to provide it with additional funding. We
are currently conducting a strategic review on the company's assets
and activities with a view to enhancing shareholder value and will
outline our vision and strategy for the business when a suitable
opportunity arises. As we stated on 30 December 2015 our plans for
the business may well involve the pursuit of an acquisition which
would trigger a reverse takeover under the AIM Rules.
As a result of the recent fundraising, the company had cash
resources of approximately GBP477,000 at 30 April 2016 which will
provide sufficient finance to cover the company's ongoing
expenditure for the foreseeable future.
C G Clarke
(Chairman)
20 May 2016
SOVEREIGN MINES OF AFRICA PLC
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Year ended 31 December 2015
2015 2014
------------------------------ ------- --------------- --------------
Note GBP GBP
------------------------------ ------- --------------- --------------
Administrative
costs
------------------------------ -------
Impairment of intangible
fixed assets (1,278,059) (3,694,352)
------------------------------- ------
Other administrative
expenses (140,373) (185,027)
------------------------------- ------
(1,418,432) (3,879,379)
-------------------------------------- --------------- --------------
Losses on financial
assets at fair
value - (2,086)
------------------------------- ------ --------------- --------------
Finance income 557 1,840
------------------------------- ------ --------------- --------------
Loss on ordinary
activities before
taxation (1,417,875) (3,879,625)
------------------------------- ------ --------------- --------------
Taxation 3 - -
------------------------------ ------- --------------- --------------
Loss for the year (1,417,875) (3,879,625)
------------------------------- ------ --------------- --------------
Other comprehensive - -
income
------- --------------- --------------
Total comprehensive
loss for the year (1,417,875) (3,879,625)
------------------------------- ------ --------------- --------------
Loss for the period
and Total comprehensive
loss attributable
to:
------------------------------- ------ --------------- --------------
Owners of the parent (1,417,875) (3,879,625)
------------------------------- ------ --------------- --------------
Non-controlling interest - -
------------------------------- --------------
(1,417,875) (3,879,625)
------------------------------- ------ ---------------
Loss per ordinary
share (pence)
From continuing operations:
basic and diluted 4 (0.45)p (1.31)p
------------------------------- ------ --------------- --------------
.
SOVEREIGN MINES OF AFRICA PLC
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Year ended 31 December 2015
Share Share Reconstruction Share Profit Total
Capital Premium Reserve based & Loss
payment Account
reserve
----------------------- ------------ ------------ --------------- --------- -------------- --------------
GBP GBP GBP GBP GBP GBP
-----------------------
Balance
at 1 January
2015 3,108,589 5,099,544 (586,100) 14,454 (6,286,097) 1,350,390
-----------------------
Loss and
total comprehensive
income for
the year - - - (1,417,875) (1,417,875)
----------------------- ------------ --------- -------------- --------------
Share-based
payment
expense - - - 12,236 - 12,236
----------------------- ------------ --------- -------------- --------------
Issue of
shares,
net of share
issue costs 55,000 463,976 - - - 518,976
-----------------------
Balance
at 31 December
2015 3,163,589 5,563,520 (586,100) 26,690 (7,703,972) 463,727
----------------------- ------------ ------------ --------------- --------- -------------- --------------
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Year ended 31 December 2014
Share Share Reconstruction Share Profit Total
Capital Premium Reserve based & Loss
payment Account
reserve
----------------------- ------------ ------------ --------------- --------- -------------- --------------
GBP GBP GBP GBP GBP GBP
-----------------------
Balance
at 1 January
2014 2,483,589 5,099,544 (586,100) 3,478 (2,367,112) 4,633,399
-----------------------
Loss and
total comprehensive
income for
the year - - - (3,879,625) (3,879,625)
----------------------- ------------ --------- -------------- --------------
Share-based
payment
expense - - - 10,976 - 10,976
----------------------- ------------ --------- -------------- --------------
Issue of
shares,
net of share
issue costs 625,000 - - - (39,360) 585,640
-----------------------
Balance
at 31 December
2014 3,108,589 5,099,544 (586,100) 14,454 (6,286,097) 1,350,390
----------------------- ------------ ------------ --------------- --------- -------------- --------------
The Reconstruction Reserve represents the difference between the
investment in the subsidiary and the share capital in the
subsidiary on acquisition.
SOVEREIGN MINES OF AFRICA PLC
(registered in England & Wales with company number
07139678)
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 31 December 2015
2015 2014
--------------------------- ----- ------------ ------------
Note GBP GBP
--------------------------- ----- ------------ ------------
NON CURRENT ASSETS
Intangible assets 5 - 1,158,898
--------------------------- ----- ------------
- 1,158,898
--------------------------- ----- ------------ ------------
CURRENT ASSETS
--------------------------- ----- ------------ ------------
Cash at bank 501,170 249,951
--------------------------- ----- ------------ ------------
501,170 249,951
--------------------------- ----- ------------ ------------
TOTAL ASSETS 501,170 1,408,849
--------------------------- ----- ------------ ------------
LIABILITIES
--------------------------- ----- ------------ ------------
CURRENT LIABILITIES
Trade and other payables 37,443 58,459
--------------------------- ----- ------------ ------------
TOTAL LIABILITIES 37,443 58,459
--------------------------- ----- ------------ ------------
NET ASSETS 463,727 1,350,390
--------------------------- ----- ------------ ------------
SHAREHOLDERS EQUITY
--------------------------- ----- ------------ ------------
Share capital 6 3,163,589 3,108,589
--------------------------- ----- ------------ ------------
Share premium account 5,563,520 5,099,544
--------------------------- ----- ------------ ------------
Reconstruction reserve (586,100) (586,100)
--------------------------- ----- ------------ ------------
Share-based payment
reserve 7 26,690 14,454
--------------------------- ----- ------------ ------------
Profit and loss account (7,703,972) (6,286,097)
--------------------------- ----- ------------ ------------
TOTAL EQUITY ATTRIBUTABLE
TO OWNERS OF THE PARENT 463,727 1,350,390
--------------------------- ----- ------------ ------------
SOVEREIGN MINES OF AFRICA PLC
CONSOLIDATED STATEMENT OF CASH FLOWS
Year ended 31 December 2015
2015 2014
----------------------------------- ------------ ------------
GBP GBP
----------------------------------- ------------ ------------
Cash flows from operating
activities
----------------------------------- ------------ ------------
Loss before taxation (1,417,875) (3,879,625)
----------------------------------- ------------
Impairment losses on intangible
assets 1,278,059 3,694,352
----------------------------------- ------------
Realised losses on financial
assets at fair value - 2,086
----------------------------------- ------------ ------------
Share-based payment expense 12,236 10,976
----------------------------------- ------------ ------------
Increase/(decrease) in trade
and other payables (21,016) 5,409
----------------------------------- ------------ ------------
Net cash flows generated by/(used
in) operating activities (148,596) (166,802)
----------------------------------- ------------ ------------
Cash flows from investing
activities
----------------------------------- ------------ ------------
Purchase of intangible fixed
assets (119,161) (354,345)
----------------------------------- ------------ ------------
Net cash used in investing
activities (267,757) (521,147)
----------------------------------- ------------ ------------
Cash flows from financing
activities
----------------------------------- ------------ ------------
Issue of shares, net of share
issue costs
518,976 585,640
Net cash flows from financing
activities 518,976 585,640
----------------------------------- ------------ ------------
Increase/(decrease) in cash
and cash equivalents
Cash and cash equivalents 251,219 64,493
at beginning of year
249,951 185,458
Cash and cash equivalents
at end of year 501,170 249,951
----------------------------------- ------------ ------------
SOVEREIGN MINES OF AFRICA PLC
Notes to the final results
Year ended 31 December 2015
1. BASIS OF PREPARATION
The financial information set out in this announcement does not
constitute the Group's statutory financial statements for the years
ended 31 December 2015 or 2014 but is derived from those financial
statements. Statutory financial statements for 2014 have been
delivered to the Registrar of Companies, and those for 2015 will be
delivered in due course.
The auditors have reported on the financial statements for the
year ended 31 December 2015; their report was unqualified and did
not contain statements under section 498 (2) or (3) of the
Companies Act 2006.
While the financial information included in this announcement
has been prepared in accordance with the recognition and
measurement criteria of International Financial Reporting Standards
(IFRSs) as endorsed for use in the European Union, this
announcement does not itself contain sufficient information to
comply with IFRSs.
The principal accounting policies adopted in the preparation of
the financial information in this announcement are set out in the
Company's full financial statements for the year ended 31 December
2015 and are consistent with those adopted in the financial
statements for the year ended 31 December 2014.
The Directors do not recommend the payment of a dividend (2014:
nil).
The Board approved this announcement on 20 May 2016.
2. OPERATING SEGMENTS
Operating Segments are based on internal reports about
components of the Group, which are regularly reviewed by the
Chairman being the Chief Operating Decision Makers ("CODM") for
strategic decision making and resource allocation in order to
allocate resources to the segment and to assess its
performance.
The group undertakes only one business activity as described in
the Director's report. All transactions between each reportable
segment are accounted for using the same accounting policies as the
Group uses, as set out in note 3. Accordingly, the Group's
operating segments have been determined based on geographical
areas.
The Group has not generated revenue during the either of the
years ended 31 December 2015 or 31 December 2014.
The Group's results by reportable segment are as follows:
Year ended 31 December 2015
UK Guinea Group
GBP GBP GBP
----------------- ---------- ------------ ------------
RESULTS
----------------- ---------- ------------ ------------
Operating loss (140,373) (1,278,059) (1,418,432)
----------------- ---------- ------------ ------------
Interest income 557 - 557
----------------- ---------- ------------ ------------
Year ended 31 December 2014
UK Guinea Group
GBP GBP GBP
----------------- ---------- ------------ ------------
RESULTS
----------------- ---------- ------------ ------------
Operating loss (181,523) (3,698,856) (3,880,379)
----------------- ---------- ------------ ------------
Interest income 1,840 - 1,840
----------------- ---------- ------------ ------------
All transactions between each reportable segment are accounted
for using the same accounting policies as the Group uses, as set
out in note 3. The Group's assets and liabilities by reportable
segment are as follows:-
At 31 December 2015
UK Guinea Group
GBP GBP GBP
--------------
ASSETS
Cash 501,013 157 501,170
--------------
Total assets 249,795 1,159,054 1,408,849
--------------
UK Guinea Group
GBP GBP GBP
------------------- ------- ------------- -------
LIABILITIES
------------------- ------- ------------- -------
Total liabilities 37,443 - 37,443
------------------- ------- ------------- -------
At 31 December 2014
UK Guinea Group
GBP GBP GBP
--------------------
ASSETS
Cash 249,794 157 249,951
Intangible Assets - 1,158,898 1,158,898
--------------------
Total assets 249,794 1,159,055 1,408,849
--------------------
UK Guinea Group
GBP GBP GBP
------------------- ------- ------------- -------
LIABILITIES
------------------- ------- ------------- -------
Total liabilities 58,459 - 58,459
------------------- ------- ------------- -------
3. TAXATION
Analysis of the tax charge
----------------------------- ------------- -----------
2015 2014
GBP GBP
----------------------------- ------------- -----------
Current tax:
Tax - -
----------------------------- ------------- -----------
Total tax charge in income - -
statement
----------------------------- ------------- -----------
Reconciliation of the tax charge
2015 2014
GBP GBP
---------------------------- ---------------- ------------
Loss before tax (1,417,245) (3,861,625)
--------------------------------- ------------ ------------
Loss before tax multiplied
by standard rate of
corporation tax
in the UK of 20% (2014:
21%) (283,449) (810,941)
--------------------------------- ------------ ------------
Effects of:
---------------------------- --- ------------ ------------
Non-deductible costs 258,057 775,814
--------------------------------- ------------ ------------
Deferred tax not provided 25,392 35,127
--------------------------------- ------------ ------------
Total tax charge in - -
income statement
--------------------------------- ------------ ------------
A deferred tax asset has not been recognised in respect of
deductible temporary differences relating to losses carried forward
at the year end, as there is insufficient evidence that taxable
profits will be available in the foreseeable future against which
the deductible temporary difference can be utilised. The amount of
the asset not recognised is GBP547,306 (2014: GBP521,914). The
asset would be recovered if the Group made taxable profits in
future years.
4. LOSS PER SHARE
Basic earnings per share is calculated by dividing the earnings
attributable to ordinary shareholders by the weighted average
number of ordinary shares outstanding during the period.
2015 2014
------------------------------ ---------------- ----------------
Weighted average number
of ordinary shares in issue 312,363,590 296,646,521
------------------------------
Loss after taxation GBP(1,417,245) GBP(3,879,625)
------------------------------ ---------------- ----------------
Loss per share (pence) (0.45)p (1.31)p
------------------------------ ---------------- ----------------
======= =======
------------------------------ ---------------- ----------------
Due to there being a loss during the period there are no
dilutive transactions and therefore no diluted loss per share has
been presented.
5. INTANGIBLE ASSETS
Exploration
costs
GBP
------------------- ----------------------
Group
------------------- ----------------------
Cost
-------------------
At 1 January 2014 4,608,531
-------------------
Additions 363,572
-------------------
At 31 December
2014 4,972,103
-------------------
Additions 119,161
------------------- ----------------------
At 31 December
2015 5,091,264
------------------- ----------------------
Impairment
------------------- ----------------------
At 1 January 2014 118,853
------------------- ----------------------
Provided in the
year 3,694,352
------------------- ----------------------
At 31 December
2014 3,813,205
------------------- ----------------------
Provided in the
year 1,278,059
-------------------
At 31 December
2015 5,091,264
------------------- ----------------------
Net Book Value
------------------- ----------------------
At 31 December -
2015 ======
-------------------
At 31 December
2014 1,158,898
------------------- ----------------------
Exploration activities are deferred until a reasonable
assessment can be made of the existence or otherwise of
economically recoverable reserves. The directors have reviewed the
carrying value of the exploration assets and an impairment
provision has been made to reflect their expected recoverable
value, in the light of discussions with potential strategic
partners.
Impairment costs are included under "Administrative expenses" in
the Consolidated Statement of Comprehensive Income.
6. SHARE CAPITAL
a) Share Capital
The Company has one class of ordinary shares which carry no
right to fixed income nor have any preferences or restrictions
attached.
Issued and fully paid:
2015 2014
GBP GBP
310,858,850 Ordinary shares
of GBP0.01 each - 3,108,589
860,858,850 Ordinary shares 86,086 -
of GBP0.001 each
310,858,850 Deferred shares 3,077,503 -
of GBP0.099
------------ -------------
-------------
3,163,589 3,108,589
-------------
======= =======
-------------
b)
b) Share issues during the year
Number Share Share Total
of shares Capital premium
GBP GBP GBP
------------------------ -------------- -------------- -------------- --------------
At 1 January
2015 310,858,850 3,108,589 5,099,544 8,208,133
------------------------- -------------- -------------- -------------- --------------
Issued in
the year
------------------------ -------------- -------------- -------------- --------------
* Ordinary shares 550,000,000 55,000 463,976 518,976
------------------------- -------------- -------------- -------------- --------------
310,858,850 - - -
* Deferred shares
------------------------ -------------- -------------- -------------- --------------
At 31 December
2015 1,171,717,700 3,163,589 5,563,520 8,727,109
------------------------- -------------- -------------- -------------- --------------
On 30 June 2015, the company's share capital was subdivided from
310,858,850 ordinary shares of GBP0.01 each into 310,850,858
ordinary shares of GBP0.0001 each and 310,858,850 deferred shares
of GBP0.099 each.
The ordinary shares carry no right to fixed income nor have any
preferences or restrictions attached. The deferred shares carry no
voting or dividend rights. Deferred shareholders are entitled to
receive the amount paid up or credited as paid up on their
respective holdings of deferred shares only after there has been
paid on each ordinary share the nominal amount paid up on such
share plus a further GBP1 per ordinary share. The holders of the
deferred shares shall not be entitled to participate further in any
distribution of the assets or the capital of the Company.
On 30 December 2015, the company raised additional working
capital of GBP550,000 through a placing of 550,000,000 new ordinary
shares with new and existing investors at a price of 0.1p each.
7. SHARE-BASED PAYMENTS
The Company has an unapproved share option scheme under which
options to subscribe for the Company's shares have been granted to
two directors. The vesting condition is the number of years'
service. The share options currently in existence were granted and
are exercisable as follows:
Date Granted Exercise Number Period exercisable
Price of shares
28 June 2013 GBP0.03 3,000,000 Between 28
June 2013 and
28 June 2018
18 November GBP0.03 3,000,000 Between 18
2013 November 2014
and 18 November
2018
30 December GBP0.001 125,000,000 Upon execution
2015 of a reverse
takeover by
the Company
30 December GBP0.001 125,000,000 On 30 December
2015 2020
---------------
256,000,000
---------------
At the year-end the market value of the Company's shares was
0.29p per share. The highest price during the year was 1.29p and
the lowest price was 0.14p.
The number and weighted average exercise prices of share options
are as follows:
Exercise Number
price of options
(pence)
Granted in the
year 0.1 250,000,000
_________
Outstanding at
year-end 0.17 256,000,000
_________
Exercisable at
year-end 3.0 6,000,000
_________
The share-based payment charge relating to the share options
granted to directors amounted to GBP10,976 (2014: GBP10,976).
The estimated fair values of options which fall under IFRS 2,
and the inputs used in the Black-Scholes model to calculate those
fair values, are as follows:
Estimated Risk
Date fair Share Exercise Expected Expected Vesting free Expected
of value price price volatility Life period rate dividends
grant pence pence Pence (%) (yrs) (yrs) (%) (%)
28.6.13 0.936 1.375 3.0 22 5 5 0.5 0
18.11.13 35 51 3.0 22 6 6 0.5 0
30.12.15 0.23 0.24 0.1 56 5 5 0.5 0
Expected volatility was determined by calculating the standard
deviation of daily continuously compounded returns of the Company's
share price calculated back from the date of grant. The expected
life used in the model has been adjusted, based on management's
best estimate, for the effects of non-transferability, exercise
restrictions, and behavioral considerations.
8. TRANSACTIONS WITH RELATED PARTIES
N A Steinberg, part-time Finance Director, is a partner in
Munslows LLP, a firm of Chartered Certified Accountants. That firm
charged fees of GBP20,000 (2014: GBP30,000) excluding VAT to the
Group in respect of professional services in the period. Of the
fees charged, GBP10,000 (2014: GBP15,000) was outstanding at year
end and has been included in trade and other payables.
Payments of GBP15,533 (2014: GBP64,826) in respect of
exploration costs were made to Irus Consulting Limited, a company
in which a director of the company, J P Barry is a director and
shareholder.
Payments of GBPnil (2014: GBP10,000) in respect of secretarial
and office costs were made to Pearl Capital Partners Limited, a
company in which a director of the company, D B Pearl is a director
and shareholder.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR PGUAGAUPQPUP
(END) Dow Jones Newswires
May 23, 2016 02:00 ET (06:00 GMT)
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