TIDMWRES
RNS Number : 2778L
W Resources PLC
30 September 2016
30 September 2016
W Resources Plc
("W" or the "Company")
Half Year Results for the Six Months Ended 30 June 2016
Highlights for H1 2016
La Parrilla, Spain
-- Mine production commenced ahead of schedule in Q3 2016.
-- A package of financing and tungsten off-take arrangements
agreed for the start-up of the La Parrilla Fast Track Mine ("FTM")
mine.
-- JORC compliant resource increased to 51 million tonnes ("Mt")
at 0.096% with an indicated resource up from zero to 36 Mt which
equates to 70% of the deposit.
-- Optimised mine plan completed which delivers low strip ratio
FTM mine pit. Metallurgical test programme and process engineering
and preliminary engineering of the FTM crusher, jig and mill, and
concentrator plant were also completed. These resulted in an
increase in FTM production by 90% compared to the previous plan, to
2,500 tonnes per annum.
-- Hard rock mining commenced with the first explosive blast
covering the first two 10 metre benches in the FTM area in
July.
Régua, Portugal
-- Initial Mine development planning completed with an economic initial mine plan.
-- An Environmental Impact Study completed in July and
environmental approval for the trial mine is underway.
-- Development is on track for production in 2018.
CAA / Portalegre, Portugal
-- A maiden JORC resource estimate of 3 Mt at 1.04 g/t gold
(equating to 111,987 oz in contained gold) was completed in June
2016 on the São Martinho deposit.
-- Drilling commenced in September 2016, to potentially double
the current JORC resource estimate.
Financial
-- A package of financing and tungsten off-take arrangements for
the start-up of the La Parrilla FTM mine was secured with ICD
Alloys and Metals LLP ("ICD Alloys").
-- Forward sale contract facility with ICD Alloys for USD1.2m,
$200,000 of this facility has already been paid to W Resources to
date.
-- Capital placements totaling GBP850,000, used to progress
development at the Régua project and the La Parrilla FTM (including
the completion of the FTM mine optimisation plan and FTM plant
engineering).
Michael Masterman, Chairman of W Resources, commented: "2016 has
so far been a great year of transition for W. We have reached major
milestones in Spain and Portugal with initial production at La
Parrilla in 2016 and are on track for Régua in 2018, whilst
increasing the prospectivity at the other three projects. The La
Parrilla mine plan is progressing well, with production commencing
in Q3 2016, and in parallel, we are continuing our discussions with
regard to financing the mine at asset level and are encouraged by
the response to date. These factors, combined with the Full Mine
approval, see the FTM construction on-track ahead of the ramp-up to
full production in 2017.
"At Régua, metallurgical results to date have been encouraging,
and this, combined with process flowsheet updates will enable us to
start work on the definition development study."
Enquiries:
W Resources Plc Grant Thornton UK LLP
Michael Masterman Colin Aaronson / Jen
T: +44 (0) 20 7193 7463 Clarke
www.wresources.co.uk / Harrison Clarke
T: +44 (0) 20 7383 5100
SI Capital - Broker Gable Communications
Andy Thacker / Nick Emerson Justine James
T: +44 (0) 1483 413500 T: +44 (0) 20 7193 7463
www.sicapital.co.uk M: +44 (0) 7525 324431
About W
In 2012, W Resources Plc (AIM:WRES) made the successful
transition into a tungsten production exploration and development
company with projects in Spain and Portugal, following two
acquisitions.
Projects include La Parrilla, a tungsten project in Spain and
Régua and Tarouca Tungsten projects and the CAA/Portalegre
copper-gold project in Portugal.
The Company's deposits and tungsten mine developments offer a
low cost, high margin resource development opportunity due to a
strong market following for Tungsten, increased trading and a
forecast shortage of supply.
The Board is focused to explore further opportunities in the
region with a view to building a mid-tier minor metal producer.
W RESOURCES PLC
CHAIRMANS STATEMENT TO THE INTERIM RESULTS
FOR THE SIX MONTHS TO 30 JUNE 2016
W Resources Plc ("W" or the "Company") has made excellent
progress in the first half of 2016, towards achieving its target to
become a mid-tier mining company. With production commencement at
its flagship tungsten development project La Parrilla in Spain in
September and good progress being made at the Régua tungsten
project in Portugal toward production in 2018, this is a
transformational year for the Company.
W has also delivered encouraging results at the CAA / Portalegre
gold project in Portugal, fortified with the addition of a new
copper exploration licence, post half year end.
La Parrilla, Spain
-- Mine production commenced ahead of schedule in Q3 2016.
-- A package of financing and tungsten off-take arrangements
agreed for the start-up of the La Parrilla Fast Track Mine ("FTM")
mine.
-- JORC compliant resource increased to 51 million tonnes ("Mt")
at 0.096% (February 2016) with an indicated resource up from zero
to 36 Mt which equate to 70% of the deposit.
-- Optimised mine plan completed which delivers low strip ratio
FTM mine pit. Metallurgical test programme and process engineering
and preliminary engineering of the FTM crusher, jig and mill, and
concentrator plant were also completed. These resulted in an
increase in FTM production by 90% compared to the previous plan, to
2,500 tpa ("tonnes per annum").
-- Hard rock mining commenced with the first explosive blast
covering the first two 10 metre benches in the FTM area in
July.
Following the completion of a 2,900 metre drilling programme in
2015 in the FTM area, an updated JORC mineral resource estimate was
issued in February 2016 by Golder Associates, in which the total
resources estimate for La Parrilla increased to 51 Mt at 0.096%
WO(3) and 0.108% Sn. This represents a substantial increase of 16%
in contained WO(3) and a 7% increase in average WO(3) grade.
Importantly, the classification of the resource increased, with an
indicated resource of 36 Mt at 0.096% WO(3) which equates to 70% of
the total resource estimate, up from zero in the previous 2013
estimate.
The optimised mine plan was completed indicating lower mine
strip ratios, lower mining costs and increased tungsten and tin
concentrate production rates. W's target is to be mining at a feed
rate of 1.95 Mtpa, producing 2,500 tpa of 66% WO(3) concentrate or
90% higher than the previous FTM plan of 0.875 Mtpa / 1,300 tpa at
an estimated cost of US$16 million by mid-2017.
On 14 June 2016, W signed the land access agreement for the
duration of the mining concessions and land access for the FTM area
was paid for one year in advance. All approvals are in place for
the FTM mine development.
Post half year end on 26 July 2016, the first mine blast,
covering the first two 10 metre benches in the FTM area which
opened up directly accessible ore to the mine operation was
completed.
A 20-hole RC programme on outcrop areas and lateral extensions
not included in the current FTM pit was completed in July 2016.
Assays results from the new on-site mine laboratory at La Parrilla
reported Hole IRC1-40 has 40m at 0.496% WO(3) and 0.112% Sn while
Hole IRC1-41 has reported 11m at 0.126% WO(3) and 0.02% Sn. Visual
geological estimation under UV light of the grid of RC holes and
mine blast holes has added significant additional definition to the
target mining area, and indicates a large lateral extension of the
La Parrilla ore body to the South at potentially higher grades,
based on site analysis with an XRF.
Also in July, a package of financing and tungsten off-take
arrangements for the start-up of the La Parrilla FTM mine was
secured with ICD Alloys and Metals LLP ("ICD"). This provides a
forward sale contract facility for USD1.2m, USD$200,000 of this
facility has already been paid to W Resources to date. In addition,
W Resources and ICD have reached a non-binding in principle
agreement to provide equipment finance for the crusher at a value
of USD2m and evaluate funding for the full FTM project. Equipment
finance leases are under discussion with vendors for the crusher,
jig and mill, and concentrator and completion of these agreements
would provide the majority of FTM plant financing.
W RESOURCES PLC
CHAIRMANS STATEMENT TO THE INTERIM RESULTS
FOR THE SIX MONTHS TO 30 JUNE 2016
Upgrade of the existing concentrator plant is advancing, and
production commenced ahead of schedule in Q3 2016 using the
existing on-site plant and facilities. Installation of a new
crusher with the capacity to process the full 1.95 Mtpa ROM feed is
expected to be operational in early Q1 2017 with the remaining
plant infrastructure on schedule for installation by mid-2017.
Régua, Portugal
-- Initial Mine development planning completed with an economic initial mine plan.
-- An Environmental Impact Study ("EIS") completed in July and
environmental approval for the trial mine is underway.
-- Development is on track for production in 2018
Following the updated JORC compliant mineral resource estimate,
issued in October 2015, the total resource tonnage increased by 22%
to 5.46 Mt at a grade of 0.28% WO(3) , up from 4.46 Mt. The
indicated resource tonnage increased by 76% to 3.76 Mt at a grade
of 0.304% WO(3) (2012: 2.14 Mt @ 0.367% WO(3) ). Trial mine
development planning advanced and is on-track for completion during
Q4 2016.
Metallurgical and plant design work for an initial shallow
open-pit mine design, as well as a second phase for a larger scale
high-grade underground operation are also in progress. The EIS was
completed in July and environmental approval for trial mine is
expected by the end of 2016. Development is on track for production
in 2018.
The Régua deposit remains open at depth and on all sides, with
significant potential to boost the resource growth to the northeast
including a 10 m thick tungsten intersection.
CAA / Portalegre, Portugal
-- A maiden JORC resource estimate of 3 Mt at 1.04 g/t gold
(equating to 111,987 oz in contained gold) was completed in June
2016 on the São Martinho deposit.
-- Drilling commenced in September 2016, to potentially double
the current JORC resource estimate.
-- Management is evaluating farm-in proposals for the CAA /
Portalegre gold copper exploration licence.
In October 2015, W Resources' CAA / Portalegre exploration
licence increased by 101.7 km(2) to 289.75 km(2), due to the
addition of the highly prospective Sa o Martinho gold project by
the Portuguese Department for Energy & Geology (DGEG).
In September 2016, W Resources commenced a targeted 1,500 metre
diamond core drilling campaign at the São Martinho project to look
to upgrade the JORC compliant mineral resource estimate of 3 Mt at
1.04 g/t gold, (includes indicated resources of 0.48 Mt at 1.03 g/t
Au) which equates to 111,987 oz in contained gold, which was
completed by Golder Associates in June 2016.
The W Board considers it logical and a strategic advantage to
farm-out the gold and base metals project to the right partner. The
evaluation of this is ongoing.
Tarouca Exploration, Portugal
In 2015, trench sampling at the Tarouca project showed
high-grade tungsten results with 15 out of 126 samples exceeding
0.5% WO(3) , including 0.8 m at 11.4% WO(3) (TTR063). Together with
the 15 holes drilled in 2014, this confirms an outstanding
exploration target in the north eastern area of the licence.
W has consolidated this data and will review timing for further
targeted drilling later during 2016.
There is a clear scope to link in with Régua development.
Monforte-Tinoca, Portugal
On 22 July 2016, the Portuguese DGEG granted W the
Monforte-Tinoca Portuguese exploration licence, containing the
Tinoca and Azeiteiros copper mines.
W RESOURCES PLC
CHAIRMANS STATEMENT TO THE INTERIM RESULTS
FOR THE SIX MONTHS TO 30 JUNE 2016
This exploration licence is located in the Northern Alentejo
region, c233 km East of Lisbon and close to W's CAA / Portalegre
copper-gold project. It covers 496.19 km(2) and is highly
prospective for copper and tungsten exploration and
development.
An initial review of the primary copper, tungsten and tin
targets will be carried out, with drilling activities planned for
late 2017.
Copper Gold Resources Plc
On 8 September 2016, the name of Australian Iron Ore Plc was
changed to Copper Gold Resources Plc to reflect the copper, gold
and of course tungsten focus of the company. Copper Gold Resources
Plc is the 100% shareholder of Iberian Resources Portugal Lda., and
holds the five mining assets in Portugal; Régua, CAA / Portalegre,
Sa o Martinho, Tarouca and Monforte-Tinoca.
Finance
During the first half of 2016, W completed capital placements
totalling GBP850,000. The funds raised were used to progress
development at the Régua Project and the La Parrilla FTM (including
the completion of the FTM mine optimisation plan and FTM plant
engineering).
In June 2016, legacy warrant holders exercised 84,933,333
warrants in the Company at an exercise price of 0.3p, and for which
W received gross proceeds of GBP254,800.
The Company recorded an after tax loss GBP332,000 in the first
half of 2016, compared to a loss of GBP359,000 in the first half of
2015.
Outlook
W has reached major milestones at Spain and Portugal towards
initial production in La Parrilla in 2016 and at Régua in 2018
respectively, whilst increasing the prospectivity at our other
projects. The La Parrilla mine plan is progressing well, with
production commencing in Q3 2016, and in parallel, we are
continuing our discussions with regard to financing the mine at
asset level and are encouraged by the response to date. These
factors, combined with the Full Mine approval, see the FTM
construction on-track ahead of the ramp-up to full production in
2017.
At Régua, metallurgical results to date have been encouraging,
and this, combined with process flowsheet updates will enable us to
start work on the definition development study.
On behalf of the board, I would like to thank our hardworking
teams in Spain and Portugal and our valued shareholders for their
continued support and we look forward to prospering with the
development work as we head towards the ramp-up of production at La
Parrilla in early 2017 following construction of the project this
year.
Mr M Masterman
Chairman
W Resources Plc
30 September 2016
W RESOURCES PLC
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHSED 30 JUNE 2016
Unaudited
Six
Months Unaudited
to 30 Six Months Year to
June to 30 31 December
2016 June 2015 2015
GBP(000's) GBP(000's) GBP(000's)
Continuing Operations
Revenue - 79 82
Cost of Sales - (106) (100)
Gross Loss - (27) (18)
Administrative Expenses (332) (334) (570)
Operating Loss (332) (361) (588)
Finance Costs - (24) (18)
Finance Income - 26 -
Loss before Income Tax (332) (359) (606)
Income Tax - - ____________-
Loss for the Period (332) (359) (606)
Other Comprehensive Income
Share Based Payment 77 - -
Unrealised Foreign Exchange
(Loss)/Gain 1,373 (746) (439)
Total Comprehensive (Loss)/Profit
for the period 1,118 (1,105) (1,045)
Basic and Diluted Loss
per Share (0.009p) (0.012p) (0.018p)
W RESOURCES PLC
GROUP FINANCIAL POSITION
30 JUNE 2016
Unaudited Unaudited
30 June 30 June 31 December
2016 2015 2015
GBP(000's) GBP(000's) GBP(000's)
ASSETS
NON-CURRENT ASSETS
Intangible Fixed Assets 10,161 6,928 8,250
Tangible Fixed Assets 1,985 1,794 1,809
------------------- ----------- -------------------
12,146 8,722 10,059
------------------- ----------- -------------------
CURRENT ASSETS
Trade and Other Receivables 763 531 574
Cash and Cash Equivalents 389 1,464 864
1,152 1,995 1,438
------------------- ----------- -------------------
TOTAL ASSETS 13,298 10,717 11,497
------------------- ----------- -------------------
EQUITY
SHAREHOLDERS EQUITY
Called up share capital 3,997 3,574 3,694
Share premium account 21,202 19,872 20,316
Retained earnings (13,592) (13,090) (13,337)
Merger Reserve 909 909 909
Translation Reserve 81 (1,599) (1,292)
Share Warrant Reserve - 77 77
------------------- ----------- -------------------
TOTAL SHAREHOLDERS EQUITY 12,597 9,743 10,367
LIABILITIES
CURRENT LIABILITIES
Trade and other payables 532 814 986
Financial Liabilities
- borrowing interest
bearing loans 169 160 144
------------------- ----------- -------------------
TOTAL LIABILITIES 701 974 1,130
------------------- ----------- -------------------
TOTAL EQUITY AND LIABILITIES 13,298 10,717 11,497
W RESOURCES PLC
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHSED 30 JUNE 2016
Called Profit Share Merger Translation Share Total
Up Share and Loss Premium Reserve Reserve Warrant Equity
Capital Account Reserve
GBP(000's) GBP(000's) GBP(000's) GBP(000's) GBP(000's) GBP(000's) GBP(000's)
Balance at
1 January
2016 3,694 (13,337) 20,316 909 (1,292) 77 10,367
Issue of Share
Capital 303 886 1,189
Total Loss
for the
period (332) (332)
Share Based
Payment 77 (77) -
Unrealised
Foreign
Exchange
Gain 1,373 1,373
Total Comprehensive __________ __________ __________ __________ __________ ______ __________
Income (255) 1,373 - 1,118
__________ __________ __________ __________ __________ ______ __________
Balance
at 30 June 3,997 (13,592) 21,202 909 81 - 12,597
2016 (unaudited) __________ __________ __________ __________ __________ ______ __________
Year to
31 December
2015
Balance at
1 January
2015 2,420 (12,731) 17,913 909 (853) 77 7,735
Issue of
Share capital 1,274 - 2,403 - - 3,677
Total Comprehensive
Income
Unrealised
Foreign
Exchange
Loss - (606) - - - - (606)
(439)
- - - (439) -
__________ __________ __________ __________ __________ ______ __________
Balance
at 31 December 3,694 (13,337) 20,316 909 (1,292) 77 10,367
2015 __________ __________ __________ __________ __________ ______ __________
6 Months to
30 June 2015
Balance
at 1 January
2015 2,420 (12,731) 17,913 909 (853) 77 7,735
Issue of
Share Capital 1,154 - 2,021 - - - 3,175
Share Issue
Costs - - (62) - - - (62)
Total Comprehensive
Income
Unrealised
Foreign - (359) - - - - (359)
Exchange
Loss - - - - (746) - (746)
__________ ___________ __________ __________ __________ ______ __________
Balance
at 30 June 3,574 (13,090) 19,872 909 (1,599) 77 9,743
2015 (unaudited) __________ ___________ __________ __________ __________ ______ __________
W RESOURCES PLC
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHSED 30 JUNE 2016
Unaudited Unaudited
Six Months Six Months
to to Year to
30 June 30 June 31 December
2016 2015 2015
GBP(000's) GBP(000's) GBP(000's)
Cash Flows from Operating
Activities
Cash Absorbed by Operations (831) (961) _______(967)
Interest Paid - - (18)
Finance Costs paid - (24) -
------------ ------------- ---------------------
(831) (985) (985)
Cash Flows from Investing
Activities
Purchase of intangible
fixed assets (857) (593) (1,720)
Purchase of tangible
fixed assets (1) (1) (15)
___________ ___________ ___________
(858) (594) (1,735)
___________ ___________ ___________
Cash Flows from Financing
Activities
Loans Received/(Repaid) - (352) (512)
Loans Received - - 144
Share Issue 303 1,154 1,274
Share Premium 918 2,020 2,501
Share Issue Costs (32) (62) (99)
Interest Bearing Loans 25 - (7)
___________ ___________ ____________
Net Cash for Financing
Activities 1,214 2,760 3,301
___________ ___________ ____________
Increase/(Decrease)
in Cash and Cash Equivalents (475) 1,181 581
Cash and Cash Equivalent
at Beginning of Period 864 283 283
Cash and Cash Equivalent
at end of Period 389 1,464 864
------------ ------------- ---------------------
Reconciliation of Cash
Flows from Operations
Loss before Tax (255) (359) (606)
Depreciation 99 98 184
Exchange Difference
on Translation 45 7 32
Share Based Payment (77) - -
Finance Costs - 24 18
(188) (230) (372)
------------ ------------- ---------------------
(Increase) / Decrease
in Trade and Other Receivables (189) 317 (274)
(Decrease) in Trade
and Other Payables (454) (1,100) (921)
(Increase)/Decrease
in Stock - 52 (52)
___________ ____________ ____________
Cash Absorbed by Operations (831) (961) (967)
W RESOURCES PLC
NOTES TO THE INTERIM RESULTS
FOR THE SIX MONTHSED 30 JUNE 2016
1. BASIS OF PREPARATION
The financial statements have been prepared under the historical
cost convention.
As an AIM listed the Company the company is entitled to
exemption from adopting IAS 34 and this exemption has been taken to
the effect that segment information is not disclosed.
The financial statements have been prepared using the accounting
policies used in the audited Financial Statements for the year
ended 31 December 2015, and which will continue to be used for the
financial statements for the year ended 31 December 2016.
The interim results are unaudited. The financial statements
herein do not amount to full statutory accounts within the meaning
of Part 15 of the Companies Act 2006.
These financial statements were approved on 30 September
2016.
Going Concern
The Directors are satisfied that the group has sufficient
resources to continue its operations and to meet its commitments in
the foreseeable future. The financial statements have therefore
been prepared on the going concern basis.
Directors Responsibilities
The Directors are responsible for preparing the Interim Review
and the Financial Statements in accordance with applicable law and
regulations. The Directors have elected to prepare the Financial
Statements in accordance with International Financial Reporting
Standards as adapted for use in the European Union.
In preparing these financial statements, the Directors are
required to:-
- select suitable accounting policies and apply them
consistently
- make judgements and accounting estimates that are reasonable
and prudent
- prepare the financial statements on the going concern basis
unless it is inappropriate to presume that the company will
continue in business.
The Directors are responsible for keeping adequate accounting
records that are sufficient to show and explain the Company's and
the Group's transactions and disclose with reasonable accuracy at
anytime the financial position of the Company and the Group.
2. INCOME TAX
There is no income tax arising on the loss on ordinary
activities for the six months ended 30 June 2016.
3. LOSS PER ORDINARY SHARE
Basic and Diluted Loss Per Share
Weighted
Average Per Share
Loss Number Amount
(GBP000's) of Shares Pence
6 Months to 30 June 2016
(unaudited) (332) 3,835,238,340 (0.009p)
6 Months to 30 June 2015
(unaudited) (359) 2,977,412,220 (0.012p)
Year to 31 December 2015
(Audited) (606) 3,290,067,485 (0.018p)
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR SDUSISFMSEEU
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